Active Development AidData Chinese Aid

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

¥77.92M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Rwanda
Country	Rwanda
Start Date	Jul 23, 2018
End Date	Jul 06, 2026
Duration	2,905 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`53369`

Grant Description

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.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period5 years

💹 Interest Rate2%

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. The project was completed in 2023.

📋 Staff Comments

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.
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.
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.
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.
The total estimated cost for project expropriation is equivalent to FRW 3,441,108,941.

📚 Sources & References

(Hello Africa) Chinese-built road boosts development in southern Rwanda, 2018年卢旺达四大交通基础设施建设项目, 2019年4月第3期
非洲投资周报
China Eximbank Signed Highway Project Loan Agreement with Rwanda
China Eximbank Signed Highway Project Loan Agreement with Rwanda
China's aid to build a 66-kilometer road upgrading project in the southern province of Rwanda officially started
China-funded Huye-Kibeho-Munini Road Upgrading Project Inaugurated
China-funded Huye-Kibeho-Munini Road Upgrading Project Inaugurated
China-funded Huye-Kibeho-Munini Road Upgrading Project Inaugurated
China-funded Huye-Kibeho-Munini Road Upgrading Project Inaugurated
Chinese corporations conduct construction projects in Rwanda
Chinese corporations conduct construction projects in Rwanda
Chinese President Sees “Vibrant And Well Organised” Rwanda
Construction works for Huye-Kibeho-Munini/Ngoma road launched
Construction works for Huye-Kibeho-Munini/Ngoma road launched
Construction works for multi-billion Huye-Kibeho road launched
Inside Rwanda
China bilateral agreements
NYARUGURU DISTRICT TO GET A 300- BEDROOM MODERN HOSPITAL
Official Gazette no.Special of 13/09/2018
Official Gazette nº Special of 13/9/2018
Over the past seven years
President Paul Kagame's administration has undertaken various initiatives aimed at the development of Huye District and its residents.
POWERCHINA inks loan contract during Xi's visit
Rwanda Government Gazette dated 2019-02-11 number 6
Rwanda Government Gazette dated 2019-05-27 number 21
Rwanda signs $300 million in loan deals with China and India
Statement on Cabinet Decisions of 08/08/2018
THE REPUBLIC OF RWANDA U.S.$620,000,000 5.500 per cent. Notes due 2031
The road to Kibeho: From dust to a renewed pilgrimage experience
Upgrading Works of Huye - Kibeho - Ngoma / Munini Road Project, 66km
中国援建卢旺达南方省66公里道路升级项目正式开工
中国进出口银行融资支持的卢旺达南部省66km公路项目正式开工
习近平同卢旺达总统卡加梅举行会谈两国元首一致同意共同续写中卢友好合作关系新篇章
外交部就习近平主席对阿联酋、塞内加尔、卢旺达和南非进行国事访问，出席金砖国家领导人第十次会晤，过境毛里求斯并进行友好访问举行中外媒体吹风会
王毅谈习近平主席亚非之行：相知无远近万里尚为邻 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

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Government of Rwanda

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