The Government has proposed to spend Rwf4,658.4 billion (over Rwf4.6 trillion) in the next fiscal year – 2022/23 which will start on July 1, representing an increase of Rwf217.8 billion or 5 per cent compared to the over Rwf4.4 trillion revised budget for the current fiscal year.
Finance and Economic Planning minister Uzziel Ndagijimana told lawmakers on Thursday, June 23, that the proposed national financial plan will strengthen the ongoing economic recovery efforts as well as finance medium term development objectives planned for in the National Strategy for Transformation.
Here are some of the key projects expected to be funded under the proposed budget in the next financial year, with focus on economic and social transformation.
Health
The project to step up the fight against malaria and other epidemics, such as AIDS and tuberculosis, was allocated Rwf85 billion.
Fighting malnutrition and stunting among children was earmarked Rwf10.7 billion, while the provision of fortified foods to children aged between six months and 23 months was given Rwf11 billion.
Muvumba multipurpose dam project
The construction of a water dam at Muvumba River in Eastern Province’s Nyagatare District was allocated Rwf29.2 billion. This is an initiative between the Government of Rwanda and the African Development Bank (AfDB).
Minister Ndagijimana said that the dam will be used for crop irrigation, provision of water to livestock, and electricity supply to households.
Data from AfDB show that the project was expected to be implemented for over 70 months (five years and a half) starting in January 2021. The direct beneficiaries include the population of Nyagatare (estimated at 560,000 people).
The cost of the first set of activities under the programme to be financed by AfDB and counterpart contribution from the Government of Rwanda is €124.190 million (about Rwf134 billion).
Benefits would be derived from irrigation development for a command area estimated at 7,380ha covering Tabagwe, Gatunda, Karama, Rukomo, Nyagatare, Rwempasha, Musheri and Rwimiyaga sectors; and municipal water supply estimated at 24,000m3/day for 300,000 people in Karangazi, Rwimiyaga and Nyagatare sectors in addition to livestock use.
Nyabarongo II hydropower project
The Nyabarongo II hydropower project was allocated Rwf16.6 billion. Ndagijimana explained that this project is in its initial stage and its implementation is currently at 3 percent.
It will have three components: 43.5 MW Hydro power plant; a substation and 110KV transmission line covering 19.2 km from the Power Plant to Rulindo sub-station.
In 2020, the Ministry of Finance and Economic Planning stated that, once commissioned after a construction period of 56 months (or four years and half half), the project will reduce reliance on non-renewable energy resources for electricity generation and contribute to the stability of the grid.
MICE tourism
To increase the country’s capacity for Meetings, Incentives, Conventions, and Exhibitions (MICE) tourism, the Government allocated Rwf10.5 billion for this initiative.
Rwanda has bid to develop its hospitality industry with MICE, and picked more interest in banking on sports tourism as a potential avenue to effectively recover the industry from the Covid-19 pandemic.
Construction of 60 million litre fuel storage tanks
The project to construct fuel storage tanks with a capacity of 60 million litres at Rusororo in Gasabo District was allotted Rwf14.2 billion for the next financial year.
Also, the purchase of strategic fuel to increase the country’s strategic reserve was allocated Rwf5.7 billion.
According to the Forward Looking Joint Sector Review by the Ministry of Infrastructure, in the current fiscal year, the Government planned construction of a 6 million litres fuel strategic stocks tanks, which it said would increase the petroleum reserve storage capacity from the current 111.2 million litres to 117.2 million litres enough to cover three months’ supply in the country in case of any disruption in the supply chain globally.
Irrigation
In line with agriculture resilience to climate change and getting rid of rain-fed farming reliance, the project to support irrigation with a focus on export crops will be financed with Rwf15.5 billion.
Irrigation is one of the key agriculture interventions during drought, mainly in the country’s Eastern Province which is prone to dry spells that cause crop failure, threatening food security.
According to the Ministry of Agriculture and Animal Resources’ annual report 2020-2021, there were over 66,840 ha under irrigation in Rwanda, representing 65 percent of the 102,284 ha irrigation target by 2024 under the National Strategy for Transformation.
Transport development
In the transport sector, the mobile bridge procurement project will be financed with Rwf1.5 billion. Such movable bridges are used to ease the movements of people and goods in case floods and landslides damage roads and static bridges.
In the maritime transport component, the project for the development of water transport infrastructure was allotted Rwf13.8 billion.
In 2018, the Government of Rwanda and Trademark East Africa undertook a project to set up four cargo and passenger ports at Lake Kivu, a move intended to improve the transport of people and goods, trade, and tourism at the lake.
The Rwf22 billion project to be implemented in the four districts of Rubavu (Nyamyumba), Rusizi (Bugiki), Karongi (at the Karongi cross-border market); and Rutsiro (Nkora region), was expected to be completed and operation by the end of 2020, but that deadline was later extended to the end of this year (2022).
Information from the Rwanda Transport Development Agency (RTDA) indicated that there would be three major ports with capacity of about 1.5 million passengers per year in 2020, projected to reach 2.8 million by 2036, while a smaller one in Karongi would start with a capacity of about 300,000 passengers per year by 2020 and 400,000 passengers by 2036.
The maximum port cargo handling capacity would be 580,000 tonnes, while the minimum is 270,000 tonnes.
Quality basic education for human capital development project
In the education component, Rwanda quality basic education for human capital development project, which seeks to improve teacher competency and student retention and learning in basic education, was allotted Rwf26.5 billion.
In 2018, the Word Bank and Rwanda signed a $200 million credit agreement to support the execution of this project, which includes the ongoing construction of 11,000 classrooms to address the overcrowding problem in schools.
The main beneficiaries of the project will be about 2 million children and students (with 50 percent female) at the basic education age (pre-primary to lower secondary) and about 10,000 students in the 16 Teacher Training Colleges (62 percent female) as well as in UR-College of Education (through the model school near its campus).