China Eximbank provides RMB 340 million government concessional loan for the Bugesera International Airport Road (Sonatubes-Gahanga-Akagera) 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 340 million ($50,300,000) government concessional loan (GCL) agreement [CHINA EXIMBANK GCL NO.(2018) 19 TOTAL No.(661)] for the Bugesera International Airport Road (Sonatubes-Gahanga-Akagera) 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 0.25% commitment fee, and a 0.25% (RMB 850,000) management fee. The borrower is expected to use the proceeds of the GCL to finance a $53,954,298.50 commercial contract [ID# 003/RTDA/018] between Rwanda Transport Development Agency (RTDA) and China Road and Bridge Corporation (CRBC), which was signed on March 29, 2018. The purpose of this project is to build an expressway (4-lane dual-carriageway) that links the urban area of Kigali to a new airport (Bugesera International Airport), thereby relieving traffic congestion, saving transit time of tourists and cargos, and increasing the tourism revenue. The project consists of two sections: the first section is from the Sonatubes Intersection to a crossing of Akagera River (Akagera Bridge), and the second section is from Akagera Bridge to Bugesera International Airport (BIA). The first section is a part of rehabilitation of National Road (NR5) Kicukiro-Nemba. China Road and Bridge Corporation is the EPC contractor responsible for project implementation. Construction began March 8, 2019. As of September 2, 2021, the project had achieved an 80% completion rate. As of December 2021, the project had achieved a 96.1% completion rate. The project is expected to reach completion in 2022. Emile Patrick Baganizi, the Deputy Director General of Rwanda Transport Development Agency, has attributed the project’s smooth implementation to RTDA’s role in compensating the expropriation of properties and supervising construction works.

Additional details

1. The China Eximbank loan agreement can be accessed in its entirety via https://www.dropbox.com/s/3qur0qvr2mtiges/China%20Eximbank%20loan%20agreement%20for%20the%20%20Bugesera%20International%20Airport%20Road%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 7 year grace period, a 2% interest rate, a 0.25% commitment fee, and a 0.25% (RMB 850,000) 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 Upgrading of Sonatubes-Gahanga-Akagera Road Project. The Chinese project title is 卢旺达新机场路升级改造项目.

Number of official sources

18

Number of total sources

32