KAYONZA — The construction of a 3 Star hotel in Kabarondo town, Kayonza district, has suffered a major setback after the Rwanda Development Bank (BRD) declined to offer the proprietors, a loan of Rwf600 million as requested.
Speaking at business meeting yesterday, Valence Konta Ruganji, the chairman of Kabarondo business community, said the bank declined on grounds that they lacked security.
“BRD assessed our collateral and said that they cannot give us more than Rwf200 million,” he said. “We now want the district authorities to give us a go ahead to construct a smaller hotel.”
However, the district Mayor, Damas Muhororo, was not happy with the approach of the business community and threatened to withdraw the land that was allocated to the hotel.
“I was contemplating giving the land to another serious investor,” he said. “You couldn’t get the money because you took the whole negotiation with BRD by your own.”
“Since you have messed up the procedures, I have no option, but to let you come up with the small hotel. But if you take more time, the district will have its land back,” he said.