The funding is part of Rwf55.3 billion needed annually to implement the project.
Rwanda secured Rwf29.9 billion ($34.7 million) to construct ports along the shores of Lake Kivu and buy a vessel mid this year.
The funding is part of Rwf55.3 billion ($64.2 million) needed to implement the Lake Kivu Water Transport Development project, which should be complete by 2037.
“We have secured 46 per cent of the money needed for the project,” said Fabrice Barisanga, the planning division manager at Rwanda Transport Development Agency (RTDA).
TradeMark East Africa — the major financier of the project — and RTDA are now seeking consultancy services for contract administration and construction supervision of the port facilities.
Development partners
Mr Barisanga said the government was also engaging other development partners to meet the funding gap after a final feasibility study on the project found it viable.
The project, which seeks to link Rwanda to key markets in eastern Democratic Republic of Congo, has two phases.
The first phase involves building two passenger ships with a capacity of 120 people each and two cargo ships with a capacity of 150 tonnes each.
The vessels will be managed through a public-private partnership business model at an estimated cost of $7.5 million.
The ships will be assembled at Bwishura in Karongi, which currently has an open air landing site and also doubles as a weekly market for traders from Rwanda and DR Congo.
Main shipyard
RTDA said they plan to construct a main shipyard, a ship building plant and a marine transport training centre at Bwishura.
The second phase of the project involves constructing modern ports at Nyamiyumba sector in Rubavu, Kamembe in Rusizi and Bwishura in Karongi.
The government also plans to develop minor ports at the Nkora landing site in Rutsiro and Kirambo in Nyamaseke.
A modern water transport system on Lake Kivu will enable the country to fully tap into markets in DR Congo’s eastern region, which are estimated to be worth $2 billion annually.
However, the markets have been difficult to access due to transport challenges coupled with non-tariff barriers.
Official data shows that at least 79.7 per cent of the country’s cross–border exports end up in DR Congo, followed by 15.5 per cent to Uganda; 4.8 per cent to Burundi and 0.2 per cent to Tanzania.
The Mayor of Karongi, Francois Ndaiyisaba, Mayor of Rubavu, Emerence Ayinkamiye, and Mayor of Rusizi, Fredrick Harimana, are betting on the modern transport infrastructure to boost economic activities in their districts.
Lack of modern vessels
In phone interviews, the mayors told Rwanda Today that the lack of modern water vessels and parking facilities at the Lake Kivu shores has reduced their local revenue base.
They added that transport costs are high, due to few vessels and this limits cross border movement.
“We do not have docking facilities for boats yet there is a growing volume of cargo transported between districts in Lake Kivu and DR Congo,” said Mayor Rubavu district, Gilbert Habyarimana.
“The boats used on the lake are small, which limits the number of passengers who can travel and shipping of cargo,” he added.