Stalled Progress: Unraveling the Delays in Burundi’s Ambitious Eco-Rumonge-Gitaza and Kabingo-Kasulu-Manyovu Multinational Project
- The aim of the Rumonge-Gitaza and Kabingo-Kasulu-Manyovu international project is to facilitate the movement of goods and people and to improve the living conditions of communities in the...
- According to the African Development Bank (AfDB) report, the project contracted eight contracts for the work and services categories, for a net cumulative sum of AU 35,158,247.
- The general commitment rate is 74.89% and the justification rate for advances on the special account is 85.68%.
Rumonge-Gitaza and Kabingo-Kasulu-Manyovu International Project Records Progress and Delays
The aim of the Rumonge-Gitaza and Kabingo-Kasulu-Manyovu international project is to facilitate the movement of goods and people and to improve the living conditions of communities in the project’s area of influence.
According to the African Development Bank (AfDB) report, the project contracted eight contracts for the work and services categories, for a net cumulative sum of AU 35,158,247.
The general commitment rate is 74.89% and the justification rate for advances on the special account is 85.68%. The payout rate is 30.22%.
The service order to start the work dates from August 23, 2021. The compensation process continued until June 2022. On June 10, 2022, a report sign (PV) was issued to ensure that the sites are available. Some activities did not start on time due to this problem with making websites available. This resulted in a deadline utilization of 84.38% compared to an increase of 40%.
Delays in the Project
The report states that at the level of the 20 km project, ie from PK70 to PK50, the delivery project has been validated since the end of 2021. However, the work is not progressing at the expected pace. “It looks like the group of companies is waiting for the 18 month deadline, the period that corresponds to the start of the review of unit prices,” the publication notes.
For the section from PK50 to PK40, ie 10 km from the project, although the implementation project has been validated since the end of 2021, this section presents a funding gap of more or less AU 5 billion.
Regarding the section from PK40 to PK25, ie 15 km from the project, there is a significant funding gap and strong erosion on the shores of Lake Tanganyika which is destabilizing the existing road due to rising water levels and landslides from the hills.
Government Intervention and Funding
A financial gap of USD 37 million was identified for the construction and equipment of the Mugina-Manyovu One-Stop Border Post. The estimated cost is USD 45,000,000, while the proposed budget is USD 12,000,000. It is therefore necessary to seek new funding in collaboration with the government of Burundi, the government of Tanzania, the East African Community (ECA) and the Central Corridor Transport Facilitation Agency (AFTTCC).
The report also mentions a lack of foreign currency at Burundian government level for payments to the company, with a pro rata of 30% in local currency and 70% in foreign currency, when equivalent funds are used. This suggests a change in the distribution key of ADF funds in order to guarantee payments in foreign currency and the equivalent in local currency.
Project Objectives
The aim of the Rumonge-Gitaza and Kabingo-Kasulu-Manyovu international project is to facilitate the movement of goods and people and to improve the living conditions of communities in the project’s area of influence. It will reduce the cost of road transport on the corridor (average vehicle operating cost), strengthen regional integration and trade in the ECA region, especially between Tanzania and Burundi, and reduce transport and border crossing costs, by reducing the average transport time from Dar-es-Salaam to Bujumbura, as well as the time needed to cross the border and access social services.