Burera District has finally made a decision to privatize Burera Beach Resort hotel before it publicly starts operations, The New Times has learned.

The multi-million property, which is located in Kagogo Sector and nestled between lakes Burera and Ruhondo, the hotel was built with an intention to enhance tourism in the area.

However, the hotel remains unoccupied since it was completed in 2016.

The decision to privatize Burera Beach Resorts is being announced days after the district’s administration terminated a management contract with a local contractor who was meant to operate the facility. 

The contract was terminated in September this year before the contractor could start following disagreements between both parties.

According to Joseph Munyaneza, the vice mayor for economic development in Burera District, the disagreement came from the works that the contractor wanted done before the hotel can begin to operate but the district had not appropriated funds for the works.

"He should have started operations as per the contract and maybe we would have met his conditions while the hotel was operating. Now we have decided to privatize it and RDB is looking for a competent private investor to take over,” he added.

He said that an inventory of assets is ongoing before the privatisation process, and a property valuation firm has been hired to carry out the financial valuation.

"We cannot determine now whether the district will hold any shares until offers from the private sector are received, and the deal structure is determined and agreed,” the RDB communication office said in an email to The New Times, adding that it will most likely not be Public Private Partnership as had previously envisaged.

It remains uncertain when the hotel will start operations because according to RDB, the timeline to start operations will be determined by the quality of bids received as well as the duration of negotiations.

RDB says the request for proposals was being drafted for interested investors.

In awarding such bids, the government normally considers experience in the field, value additions in terms of management, upgrading the hotel, marketing plans, products, services, maintenance plans.

The investor shall also meet the minimum required in the financial offer.

Explaining why there has been a delay in occupying the hotel since completion of the construction works 2016, Munyaneza said that there was considerable time lost in equipping the facility.

According to Munyaneza, this was due to delays in getting a competent bidder to supply the equipment, adding that the tender was advertised at least three times before s reasonable bid worth Rwf100 million was agreed upon with the supplier.