China Eximbank provides RMB 550 million government concessional loan for 66km Huye-Kibeho-Munini Road Project

On July 23, 2018, the Government of Rwanda and the People’s Republic of China today signed a preferential loan framework agreement for the Bugesera International Airport Road (Sonatubes-Gahanga-Akagera) Project. On the same day, China Eximbank and the Government of Rwanda signed an RMB 550 million ($77,915,388) government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO.(2018) 14 TOTAL No.(656)] for the 66km Huye-Kibeho-Munini Road Project. The GCL carries the following borrowing terms: a 20 year maturity, a 5 year grace period, a 2% interest rate, a 0% default (penalty) interest rate, a 0.25% commitment fee, and a 0.25% (RMB 1,375,000) management fee. The borrower is expected to use the proceeds of the GCL to finance a $77,915,388 commercial contract (ID# 038/RTDA/016] between Rwanda Transport Development Agency (RTDA) and Sinohydro Corporation Limited, which was signed on December 30, 2016 and amended on August 29, 2017. This project involves the upgrading of unsurfaced roads (including 12 km of urban streets in Kibeho City) measuring 66.3 km length in Huye and Nyaruguru provinces in southern Rwanda. The existing roads are gravel roads, except for 1.5 km in Huye town which is asphalted. The 66.3 km road connects the touristic centre of Kibeho with Kigali-Huye-Akanyaru Haut national road (NR1), linking this centre with Burundi border at Akanyaru-Haut border; and it also connects with Munini Hospital. The road passes one town, Kibeho and several villages, the largest of which are Ndago, Ngoma and Munini. Upon completion, this project is expected to boost transport and investment conditions in the country, and promote the development of local tourism and agriculture industries. It is also expected to improve the country's traffic conditions with its neighbor Burundi, while facilitating trade ties between the two countries. Sinohydro Corporation Limited is the general EPC contractor responsible for implementation. A local company, Horizon Rwanda Ltd., is also involved as a subcontractor. Construction began on March 29, 2019. Project implementation was originally expected to take place between April 9, 2019 and April 9, 2022.

Additional details

1. The China Eximbank loan agreement can be accessed in its entirety via https://www.dropbox.com/s/wa70bq1t7clg9qe/China%20Eximbank%20GCL%20Agreement%20for%20the%20Huye-Kibeho-Munini%3ANgoma%20Road%20Upgrading%20Project.pdf?dl=0. 2. 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 5 year grace period, a 2% interest rate, a 0.25% commitment fee, and a 0.25% (RMB 1,375,000) management fee] that was issued for this project. AidData relies on the borrowing terms that are identified in the loan agreement itself. 3. This project is also known as the Huye-Kibeho-Munini/Ngoma Road Upgrading Project or the 66.3km Huye-Kibeho-Munini Road Project. The Chinese project title is 卢旺达南方省66公里道路升级项目 or 卢旺达胡也66公里公路项目. 4. In Nyaruguru District, 1,647 properties will be expropriated for a total value equivalent to FRW 2,358,140,223. In Huye District; 407 properties will be expropriated for a total value equivalent to FRW 1.082.968.718. The total estimated cost for project expropriation is equivalent to FRW 3,441,108,941.

Number of official sources

22

Number of total sources

30