Senate summons PM over issues in industrial park development

The Senate will summon the Prime Minister to explain how the government plans to address persistent issues delaying the development of infrastructure in industrial parks after senators concluded that progress remains below expectations. The decision was made on Tuesday, July 7, after the Senate Committee on Economy and Finance had presented a report on the implementation of a 2020 resolution that directed the government to expedite the provision of infrastructure in industrial parks. ALSO READ: Govt mulls centralised management of industrial park Senator Fulgence Nsengiyumva, the committee chairperson who presented the report, said that although progress had been made since the Senate first raised concerns in 2020, the pace of infrastructure development remained slow. The Committee found that progress has been made in implementing this resolution, but it is not at a satisfactory level, Nsengiyumva said. If not addressed, this issue could hinder the growth of industries and prevent the country from achieving its target of building a sustainable economy driven by industrial development and increasing industrial production by 10.6 per cent annually under NST2. Road construction remains behind planned targets in several industrial parks, the senator said. ALSO READ: Private sector flags key hurdles in industrial parks In Rusizi Industrial Park, only 1.5 kilometres of the planned four kilometres of paved roads have been completed. Huye has completed 1.3 kilometres out of the planned 4.2 kilometres, while Musanze has built only 0.5 kilometres of the planned 3.48 kilometres of paved roads. None of the planned two kilometres of earth roads in Musanze has been constructed. Electricity supply is also still low, with frequent outages disrupting production, while water is available only intermittently despite being essential for daily industrial operations, Nsengiyumva said. ALSO READ: Govt to expropriate residents from four industrial parks The committee also found that, except for the Kigali and Bugesera Special Economic Zones, other industrial parks lack wastewater treatment systems. Most parks also do not have fiber optic internet infrastructure or supporting services such as health facilities, restaurants, worker accommodation, childcare centres and organised transport. Citing 2023 findings of the Office of the Auditor General, Senator Nsengiyumva said some industrial parks were developed without first conducting detailed feasibility studies or environmental and social impact assessments. Some investors acquired plots and failed to establish industries, choosing instead to hold the land in anticipation of future gains. Elsewhere, residents continue to live on land designated for industrial parks due to delayed compensation, he added. The committee further questioned the continued designation of additional land for industrial parks in districts and the City of Kigali while portions of existing industrial parks remain underdeveloped. The process of designating land for industrial parks should be reviewed to avoid unnecessarily affecting residential areas and reducing land available for agriculture, livestock farming and other uses, Nsengiyumva said. During the session, senators stressed that weak coordination among public institutions continues to delay infrastructure projects. Senator Hadija Ndangiza Murangwa said roads, drainage systems, electricity and water infrastructure should be planned and implemented simultaneously. There is a need for coordinated infrastructure development. We have seen roads being constructed only to be damaged later by water installations because the necessary supporting infrastructure had not been planned, she said. Murangwa added that better planning would reduce costs. Senators also argued that the government should rely more on Public-Private Partnerships to accelerate infrastructure development, saying public resources alone would be insufficient to meet the country's industrialisation targets.

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Senate summons PM over issues in industrial park development