Infrastructure: Eight major projects in Rwf630bn budget

The Ministry of Infrastructure and its affiliated agencies are expected to spend approximately Rwf630 billion on infrastructure projects in the country during the next fiscal year, with the aim of improving access to utilities such as water and electricity, as well as road and maritime transport, according to data from the National Budget and Patrimony Committee. The Chairperson of the Committee on National Budget and Patrimony, MP Omar Munyanzeza, said that the budget of the Ministry of Infrastructure and its affiliated agencies account for a significant share of the more than Rwf5 trillion proposed national budget for the next financial year. “It is almost the combined budget allocated to all 30 districts of the country,” he observed, adding that the infrastructure that has to be built justifies such an allocation. He stated that the Energy Development Corporation Ltd (EDCL) had a budget of Rwf191 billion in the current fiscal year, but it is projected to increase to Rwf245.5 billion in 2023/2024, in line with the Government’s target to ensure that 100% of its residents have access to electricity by the end of 2024. ALSO READ: Rwanda plans to spend over Rwf5 trillion in 2023/24 The following are some of the major projects to be financed in the next fiscal year: 1. Conducting roadside station study Imena Munyampenda said that it is expected that a study will be conducted on setting up roadside stations. These rest stops, found along roads or highways, provide services such as restrooms, restaurants, tourist information, and local specialties, and are already available in countries like Japan. Munyampenda indicated that Rwf203 million was earmarked for this study to be carried out in the next fiscal year, but pointed out that the total budget for the project is more than Rwf225 million. “We want to set up stations along our roads where people can get food, and be able to have a wash or rest,” he said. 2. Construction of ports at Lake Kivu This project for the construction of ports at Lake Kivu was allocated Rwf17.8 billion. Information from the Rwanda Transport Development Agency (RTDA) indicated that the total budget for the project is Rwf24.1 billion, and it is expected that this undertaking, which was initiated in 2018, will be completed in February 2026. However, it was revealed that the construction of the Rubavu port was at 54%, the Rusizi port at 8.9%, while the Nkora and Karongi ports were at 0% as no budget has been provided yet for their construction. RTDA stated that the four cargo and passenger ports at Lake Kivu are intended to develop trade, maritime transport and tourism around the lake, thus benefiting communities and the economy. ALSO READ: Govt, TMEA to build four ports on Lake Kivu Meanwhile, the Auditor General’s report for the financial year ending June 30, 2022, indicated that the original duration of the Lake Kivu Inland Water Transport Project was five years, from 2018 to 2023. However, the audit noted gaps, including that the construction of planned ports had been put on hold, either because of study revision, or lack of funds. 3. Nyabugogo-Jabana and Nyacyonga-Mukoto road Nyabugogo-Jabana and Nyacyonga-Mukoto roads (40 kilometres of tarmac) were allocated Rwf12.7 billion. The total required financing for the project is Rwf45 billion. The road will connect Kigali to the Northern Province. The deadline for the project’s execution is December 30, 2025. On May 17, 2022, Rwanda signed a loan agreement worth $18 million (approximately Rwf20 billion) with OPEC Fund for International Development (OFID) to upgrade the road from Nyacyonga to Mukoto, between Gasabo and Rulindo districts. The move is projected to benefit the population by creating an alternative access road from Kigali City to the Northern Province. ALSO READ: Nyacyonga-Mukoto road gets funding 4. Construction of Mwange water treatment plant in Gicumbi Town “Gicumbi Town in Gicumbi District is growing, with its population and water needs increasing as well,” said the CEO of Water and Sanitation Corporation (WASAC), Gisele Umuhumuza. To cater to their water needs, Umuhumuza told parliamentarians that the Mwange water treatment plant will be set up in Gicumbi Town, with a capacity to purify 23,000 cubic metres per day. The total budget required for the project implementation is Rwf35.5 billion, and it is to be funded by the Government of Rwanda and the African Development Bank. In the next fiscal year, the Government of Rwanda has earmarked over Rwf1 billion towards the project execution, which is projected to be completed in June 2025. 5. Nyaruguru-Huye-Gisagara water supply system Another water access scheme that is planned for the next fiscal year is the construction of the Nyaruguru-Huye-Gisagara water supply system (phase I of 25,000m3 per day). It will be funded by the Government of Rwanda and the African Development Bank, to the tune of Rwf35.5 billion. For the next fiscal year, the Government has earmarked over Rwf1 billion to support its implementation. WSAC indicated that the project will start in July 2023 and run through June 2025. 6. Rehabilitation of non-functional rural water supply systems This project was earmarked Rwf869 million, which WASAC said is a small amount. They told lawmakers that with the limited earmarked funds, only 21 rural water supply systems can be rehabilitated, which is less than 10 per cent of the 239 water systems that need rehabilitation as of now. The project, which began in July 2017 and is due to end in June 2024, requires Rwf13.5 billion to be fully implemented, with the rehabilitation of 403 rural water supply systems in total. Data from WASAC indicates that Rwf3.8 billion has been used on the project so far. 7. Energy access and quality improvement project In order to scale up energy access, EDCL plans to spend Rwf48 billion in the next fiscal year on the implementation of the Energy Access and Quality Improvement Project (EAQIP), according to data from the utility entity. Information from REG indicates that the project development objective is to increase access to modern energy (clean cooking solutions) for households, enterprises, and public institutions, and to enhance the efficiency of electricity services in Rwanda. The project will provide $15 million in financing to make access to off-grid electricity affordable at all income levels and to connect at least 150,000 households. It runs from 2021 to 2026, at a cost of more than Rwf181 billion. Currently, Rwf18 billion, or about 10% of the required funding for the scheme, has been spent. 8. Transformation system reinforcement and last mile connectivity project This is another energy project that will be funded in the next fiscal year, for which Rwf17 billion has been earmarked. The project will run from 2021 to 2026, and so far, only Rwf2.5 billion has been used, which is slightly more than one per cent of the total Rwf240 billion funding needed for it. Under the Last Mile Connectivity Project, works will include the construction of a total of 595 km of medium-voltage and 1,620 km of low-voltage connections, which will result in the connection of 77,470 households in Gisagara, Huye, Nyamagabe, Nyanza, Nyaruguru and Ruhango districts, according to information from the Ministry of Finance and Economic Planning (MINECOFIN). The 5th Population and Housing Census carried out in August 2022 by the National Institute of Statistics of Rwanda, indicated that 61 per cent of Rwandan households were connected to electricity — including 47 per cent accessing energy from the national grid and 14 per cent through off-grid systems (mainly solar). The Chief Executive Officer of Rwanda Energy Group (REG), Ron Weiss, told lawmakers that its subsidiary — EDCL — still needs about Rwf600 billion to achieve the universal energy access goal. ALSO READ: Rwanda needs more Rwf600bn to achieve universal access to electricity

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Infrastructure: Eight major projects in Rwf630bn budget