Gatsibo District officials have said they are considering selling Kabarore Guest House as its maintenance cost continues to increase, while the district seeks to make it profitable through privatisation.
Built with funding from the district, Kabarore Guest House is located in Kabarore, the main town in the district.
The district leaders made the disclosure on Thursday, September 15, while appearing before the Parliament’s Public Accounts Committee (PAC) during the continued scrutiny of the Auditor General’s report for the financial year ended June 2021.
According to the AG’s report, this facility, built at an estimated cost of over Rwf933 million, was found to have several defects.
They include roof leakage for some of its structures, humidity which has eaten up different walls, broken bathrooms, and damaged locks for rooms, as well as defective electrical sockets.
The district’s vice mayor in charge of finance and economic development, Jean Leonard Sekanyange said that, given its current state, it would require a lot of money to renovate it.
"These costs are a lot yet it was a venture that was already making losses. That is why we had the idea of selling it to a private investor to operate it,” he said adding that in the current state, it is difficult for the facility to offer the desired quality of services.
This hotel, whose construction started in 2013 and was completed around 2016, was meant to offer better accommodation to the district visitors and tourists who go to Akagera National Park, according to officials. But, they said, its poor condition has challenged that bid.
MP Jean René Niyorurema said that in four years, Gatsibo District had to be given a lease fee amounting to Rwf177 million for the Kabarore Guest House, by its manager.
But, he said, the audit found that in four years starting from January 31, 2017 to January 31, 2021, the district was only given over Rwf60 million, while the remaining over Rwf115 million, were not yet paid.
"The district should give us an update about this issue,” he said.
On the facility management, Jolly Nankunda, Executive Secretary of Gatsibo District said that it was managed through leasing, indicating that the first manager – from whom the district struggles to recover the Rwf115 million lease fee – was replaced by another in an effort to improve the situation.
Gatsibo District Mayor, Richard Gasana said that the sale of the facility was the right option, adding that they are building a tarmac road heading to the Guest House.
"Very soon, in this quarter [of the current fiscal year], we will table that Guest House in the district council so that a decision is taken [on its sale],” Gasana said.
"It is a facility which is in a good location; it has a good view. It sits on a sizable land of five hectares, such that the person to buy it can set up a new facility if they want,” he said, adding that they would work with the Rwanda Development Board (RDB) in order to expedite its privatisation.
PAC Chairperson, Valens Muhakwa said that if the Guest House privatisation is the way to go, the district should ensure that the facility is in good condition before selling it.