Narrative
Full Description
Project narrative
On July 29, 2016, the Chinese Government and the Government of Rwanda signed a preferential loan framework agreement for the 54.56 km Kigali Urban Road Expansion Project. On the same day, China Eximbank and the Government of Rwanda signed an RMB 488 million government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO. (2016) 3 TOTAL NO. (572)] for the 54.56 km Kigali Urban Road Expansion Project. The GCL carries the following borrowing terms: a 20 year maturity, a 7 year grace period, a 2% interest rate, a 0% default (penalty) interest rate, a 0.30% commitment fee, and a 1% (RMB 4,880,000) management fee. The borrower was expected to use the proceeds of the GCL to finance a $76,279,576.30 commercial contract [ID# 185-C/08/13/CoK] between the City of Kigali and China Road and Bridge Corporation (CRBC), which was signed on August 9, 2013. The project involves the widening of urban roads to 4-lane (dual-carriageway) and the construction of new roads. More specifically, the project involves (1) the expansion and upgrading to dual carriage of the route from the city centre roundabout through Muhima, Nyabugogo to Gatsata; (2) the expansion and upgrading to dual carriage of the road from Rwandex-Sonatubes-Prince House in Remera; (3) the overlaying and replacement of streetlights along Kanogo-Rwandex road; (4) the construction of Kimihurura road network, including Rwandex-Gishushu (dual carriage), Rwandex-Mu myembe (Dual carriage), Mu myembe-Kimihurura (Primature) Roundabout (dual carriage); (5) and the construction of the Nyamirambo-Rebero-Kicukiro (Nyanza) road, the Nyamirambo-Cyumbati-Gikondo road, Kagugu-Batsinda-Nyacyonga road, the city centre-Yamaha road (dual carriage), and the Kimisange-Cyumbati road. In total, 54.56 kilometers of roads in Kigali City will be constructed or rehabilitated. China Road and Bridge Corporation (CRBC) is the contractor responsible for project implementation and it is working under the supervision of HYCOGEC. Project implementation commenced on May 2, 2017 and the the project was originally expected to reach completion within 32 months (January 2, 2020). However, the project was ultimately completed on or around September 8, 2020.
Staff comments
1. The Chinese project title is 基加利市政道路改扩建工程 or 54.56公里基加利市政道路改扩建工程项目 or 卢旺达基加利市政道路改扩建工程项目. 2. The China Eximbank loan agreement can be accessed in its entirety via https://www.dropbox.com/s/698eo8ypqo4mhgo/China%20Eximbank%20loan%20agreement%20for%20Rwanda%20Kigali%20Urban%20Road%20Upgrading%20Project%20.pdf?dl=0. 3. In the database of Chinese loan commitments that SAIS-CARI released in July 2020, it does not identify the borrowing terms of the China Eximbank loan [a 20 year maturity, a 7 year grace period, a 2% interest rate, a 0.30% commitment fee, and a 1% (RMB 4,880,000) management fee] that was issued for this project. AidData relies on the borrowing terms that are identified in the loan agreement itself. 4. In 2009, China Eximbank also issued an RMB 219 million loan to the Government of Rwanda for the rehabilitation of roads in Kigali (as captured via Record ID#955).