Kigali City investments reach Rwf 385Bn

Kigali City Construction One-Stop Centre has approved 64 investment projects worth Rwf384.6bn since its inception in April last year to facilitate doing business in the country.

Joshua Ashimwe, the Acting Coordinator of the centre, revealed this yesterday in Kigali, while addressing the press on the current status regarding the implementation of the City Master Plan.

Ashimwe said that 20 of the approved projects are currently under construction, and that the average period for approval of each project was 21 days.
So far 169 construction applications have been received by the centre.

Among the approved projects are five hotels valued at about Rwf4.9bn, 14 commercial complexes (Rwf73.1bn) and seven apartment buildings worth over Rwf15.1bn.

Others are two industries (Rwf1.8bn), an oil reserve facility (Rwf288m) to be constructed in Kabuga and four Churches (over Rwf1.7bn), among others.

By September last year only 36 construction permits worth Rwf 96.6 billion had been approved by the centre.
City Mayor, Aisa Kirabo Kacyira said that investments worth Rwf300billion are in the Central Business District (CDB).

She observed that the implementation process of the master plan is still at less than 10 percent, but added that “the core principles and the guidance and mobilization have gone further than that.”

“Implementing the Master Plan is a process. First there has to be a common understanding in the community because we have stakeholders in the development of the city. The communities, politicians, the investment community, all need to come on board,” Kirabo noted.

She added that currently the city has an investors’ forum where they meet with the private sector to iron out problems that could be affecting the investment process.
The Mayor, however, said that they are currently facing challenges, which include the quality of project proposals submitted by the investors.

“People have got the concept of what they want to do, but being able to scientifically express that in a manner that fulfils all the requirements is where we still have a challenge,” Kirabo said.

The One Stop Centre was established to address challenges formerly faced by prospective investors, especially in the acquisition of documents like land titles.

Source :Newtimes

Rwanda aviation industry in growth 2010 -2011

Rwanda Civil Aviation Authority (RCAA) says it has recorded an increase of 25 percent in its revenue on account of increased air traffic and airport users over the last three years at Kigali International Airport.

Statistics from the body which oversees and regulates the aviation industry in Rwanda show  that it grew by 20 percent with approximately 300,000 passengers registered by the end of last year while the number flights increased from 60 in 2009 to 100 flights last year.

In an exclusive interview with Business Times yesterday, Richard Masozera the Director General of RCAA attributed the growth in revenue to the automation of car park which has improved the efficiency in financial collection.

The system offers a diverse range of information to meet security needs and reduce the likelihood of small funds being mismanaged.

“In 2010 the aviation industry recorded significant achievements in daily operations, in infrastructure development, flight safety, air navigation and human resource development,” he said.

Rwanda is benefiting from increased inflow of air traffic particularly from USA, the UK, Japan, Germany and the East Africa Community.

"We are benefiting from an improved national economy and also a recovery from the Global Financial Crisis," Masozera said.

Masozera observed that the industry is experiencing a growth in traffic volumes, a trend that is likely to continue throughout this year following the entry of KLM and Air Uganda in to the market last year.

“With more entrants in the market and with the opening of new routes by the National carrier, Kigali will be a transit point in the region,” he emphasized.

Increase in scheduled flights this year is expected to trim cargo flight costs and significantly increase horticulture exports.

"With daily flights to the Middle East and Europe, the opportunities of fresh produce to hit the European market have increased, but cargo airline needs the organization of farmers...to sustain the volumes which can ration an airline," he said recently in a parallel interview.

It’s projected that 2011 will see more air-traffic increase with the amended and fresh Bilateral Air service Agreements (BASAs).

Interested countries include; Belgium, United Arab Emirates (UAE), Singapore, Egypt and The Netherlands. 

source :Newtimes

Rwanda methane gas get one year extention

The first phase of the methane gas extraction project in L. Kivu, which was to be completed by December last year, was given 31st December 2011 as its new deadline.

According to the Head of Oil and Gas Department in the Ministry of Infrastructure, Charles Nyirahuku, the one year extension was due to delays in issuing an environmental impact assessment certificate.

In March 2009, ContourGlobal, an American company, signed a deal worth US$325 with the government to develop an integrated gas extraction and electricity facility to provide 100MW of electricity to Rwanda and the East African region.

Nyirahuku said that the project met several challenges that delayed its completion, including delays in  impact assessment, a prerequisite for the project to kick off.

He added that CountourGlobal’s failure to sign a deal with Multilateral Investment Guarantee Agency (MIGA) for Public Risk Insurance, further contributed to the delays.

“It was reported earlier that MIGA is a financer, but we wish to clarify the matter; MIGA is not providing funds to the project, but rather insurance coverage against political risk,” Nyirahuku said.

“MIGA and Contour haven’t signed a permanent deal, but we are optimistic about a positive outcome.”

He also added the ContourGlobal planned to outsource new financers to provide better financing terms to the project
“A combination of debt and equity financing would benefit the project in spreading the risk between banks and the investors, and provide better financing terms which would result in a substantial electricity tariff reduction,” he said.

ContourGlobal, under its subsidiary, Project Kivuwatt, was designated to operate in two phases, the first becoming operational by December 2010 with the production of 25MW, while the second phase of 75MW going into operation by 2012.

Efforts to get comments from ContourGlobal’s Country Director, Jarmo Gummerus, proved futile as it was reported he was out of the country.

Source:Newtimes