Completed Development AidData Chinese Aid

China Eximbank provides RMB 340 million government concessional loan for the Bugesera International Airport Road (Sonatubes-Gahanga-Akagera) Project

¥340M RMB

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	Government of Rwanda
Country	Rwanda
Start Date	Jul 23, 2018
End Date	May 28, 2030
Duration	4,327 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`56766`

Grant Description

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.

📋 Loan / Grant Terms

📅 Maturity20 years

⏳ Grace Period7 years

💹 Interest Rate2%

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. By September 19 2022, the project had reached completion and was reported to have helped ease traffic.

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.

📋 Staff Comments

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.
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.
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.

📚 Sources & References

Bugesera Road Expansion Taking Shape
China Eximbank Signed Highway Project Loan Agreement with Rwanda
China Eximbank Signed Highway Project Loan Agreement with Rwanda
Feature: Modern roads pave way for deepened Rwanda-China cooperation
FEATURED: China expands Rwanda’s infrastructures with billions of funding
Inside Rwanda
China bilateral agreements
Journalists from Rwandan Media Houses Interviewed Infrastructure Projects Built by Chinese Companies in Rwanda
Kicukiro flyover to be complete by June 2022
Kubaka no kwagura umuhanda Sonatubes-Gahanga-Akagera bizatwara miriyari 48
Made in Rwanda Initiative Gains New Momentum
NEW BUGESERA INTERNATIONAL AIRPORT ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT REPORT – NON-TECHNICAL SUMMARY
Official Gazette no.Special of 13/09/2018
Republic of Rwanda Data Collection Survey on Development of Urban Transport System in Kigali City
Road to Riches
RWANDA AND CHINA EXIM BANK DISCUSS POTENTIAL AREAS OF COOPERATION
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 Central People's Government of the People's Republic of China - Chinese-financed road helps ease traffic flow, movement of goods in Rwanda
Upgrade of Sonatube-Gahanga-Akagera road commences
Upgrade of Sonatube-Gahanga-Akagera road commences
Upgrade of Sonatubes - Gahanga - Akagera road to be complete by 2021
Upgrade of Sonatubes - Gahanga - Akagera road to be complete by 2021
Upgrade of Sonatubes - Gahanga - Akagera road to be complete by 2021
Upgrade of Sonatubes-Gahanga-Akagera road to be complete by 2021
中国援建卢旺达新机场路升级改造项目正式开工
中国援建卢旺达道路项目助力卢旺达发展
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
卢旺达基加利:中国援建卢旺达道路项目助力卢旺达发展
卢旺达新机场路升级项目将于明年2月初正式启动
在非洲“千丘之国”，公路为什么这么好？
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.