Why this project?
As part of Rwanda’s Vision 2020 and EDPRS 2, the GoR intends to implement an inland waterways cargo system on Lake Kivu. The TMA commissioned a feasibility study for the programme in 2017 which assessed the project as being both economically and financially viable. Water transport in Rwanda is currently unexploited and TMA support will help the Government to attract investment into this mode of transport which has been found to be both cheaper and safer than road transport.
TMA will support the Government of Rwanda to construct basic harbour facilities in two port towns of Rubavu and Rusizi and attract private sector investors to operate ferry services on the lake while the Government of Rwanda will secure funds internally to fund the development of Karongi and Nkora ports. The choice of these locations is based on TMA commissioned a feasibility study of 2017 which includes a comprehensive traffic survey and analysis of project benefits where transport benefits are expected to reach and $ 20.4 million as annual savings and 17.7 as a result of avoided fatalities.
Increased lake connectivity will increase economic gains from Cross Border Trade by offering better opportunities for traders to select the crossings where they get better prices. Key commodities traded include cement which moves from the will move from South to North, while potatoes and dairy products will move from North to South. CBT will also increase from enhanced connection between Karongi and neighbouring districts of Nyamasheke and Rutsiro as well as directly to the DRC side. On the DRC side, there is already infrastructure and ferry operations from the mainland to the larger islands on the Lake (particularly the island of Idjwi).
What:
The main component of the Lake Kivu Transport project is the construction of harbor facilities on Lake Kivu at Rubavu and Rusizi. The two districts are located at the busiest border crossings between Rwanda and DRC and together represent around 70% of Rwanda’s total cross border trade volumes. In addition to the construction of the harbor facilities, Transaction Advisory services will be provided to attract private sector investment for management of ports and barge operations and review the marine regulatory and institutional framework. Construction of the ports will kick-off in the FY2018-19
Rubavu is situated on the northern end of the lake and is the main gateway for trade to Goma and the North Kivu province in the DRC. Rusizi is located in the Southern end of the lake and is the main gateway for trade towards Bukavu and the South Kivu province in the DRC. TMA has constructed a Cross Border Market in Rusizi.
TMA has funded the construction of Cross Border Markets in Rubavu and Rusizi. Under the women in trade programme, a number of cooperatives based in the two districts were also supported to increase their competitiveness and so the selection of the two sites fits well into the overall TMA Rwanda Cross Border Trade work.
How:
For the construction of harbour facilities on Lake Kivu in the Districts of Rubavu and Rusizi, a Design and Supervise Consultant has been contracted to review the port designs, prepare tender documents for the construction and supervise the construction of the ports.
Parallelly, in order to ensure that the harbour facilities are fit-for-purpose for the private investors in transport systems on the lake, a Transaction Advisor was contracted to carry out market sounding on the attractiveness of the project to potential investors. The advisors are also carrying out a review of the marine regulatory and institutional framework
In order to ensure safety on the Lake, a firm was contracted to conduct Hydrographic Surveys and produce the Navigation Charts for the Aids to Navigation on Lake Kivu.
Contact:
Jackie Zizane: jackie.zizane@trademarkea.com
