Rwanda is losing money due to bad contracts signed with investors that end up making it difficult to implement.
For instance, lawmakers during the public accounts committee hearing heard that a multi-million project involving the India Export- Import Bank (EXIM Bank) in the Eastern province recently failed to take off because technocrats at Rwanda Agricultural Board had difficulty in implementing the agreement that was signed.
In October 2013, the government acquired a loan of Rwf114.3 billion from Indian Export-Import Bank (EXIM Bank) to execute exports-targeted irrigation (ETI) project.
While the completion date of the project was initially slated for April 2016 but extended to July 2019, a recent audit carried out by the Office of Auditor General noted that in March 2020, seven months after the expected completion date, the project was not yet complete.
While appearing before the standing Public Accounts Committee (PAC) in the parliament, officials from the Ministry of Agriculture and Animal Resources blamed the negotiated funding and construction mechanisms of the project to delay its completion.
“The project has been delayed by its negotiated implementation mechanisms, which required us to source most of the construction materials from India, the country that has offered the funding for the project,” said Dr Patrick Karangwa, the director- general of Rwanda Development Board (RAB).
The project perceived to providing modern irrigation facilities to 7,000 hectares’ command area in Mahama, Mpanga and Nyamugali sectors of Kirehe district.