Rwanda’s US $100 irrigation scheme is set to face financing setback. In 2018, the country and the Export-Import Bank of India signed a loan agreement of US $100 million to develop three irrigation schemes; Warufu, Nyamukana and Mugesera.
The Warufu irrigation site is located in Gatsibo District, Nyamukana in Nyanza District and Mugesera in Ngoma District. The three projects aimed at tackling drought and revive the declining fortunes of farmers stemming from drought, the project targeted to irrigate some 6,000 hectares of land.
It was set to boost farmers’ incomes and help address food shortages among some residents upon completion which was to be after four years. However, since the signing of the loan agreement, the project implementation has not yet started.
Stringent credits
While Warufu and Nyamukana irrigations schemes have feasibility studies, for Mugesera no study was conducted, hence the project could not commence. Nyamukana and Warufu were ready for implementation but, after a review, it was found out that the conditions for the line of credit were stringent.
The Bank demanded 75% of goods and services associated with the projects must be sourced from India. Patrick Karangwa, the Director General of RAB, told The New Times that this was a major obstacle for them.
“Unless stones and sand were to be imported from India, the condition was not to be fulfilled. Going forward, Rweru irrigation scheme in Bugesera District has been proposed to India Exim Bank for funding, replacing Warufu and Nyamukana irrigation schemes. The proposal is pending approval
Mugesera targets 3,500 hectares, while Rweru targets 3,000 hectares, according to Robert Ndabavunnye, the Irrigation Specialist at RAB. Ndabavunnye said that initially, Mugesera was to irrigate 1,000 hectares, but was upgraded to 3,500 hectares following a review. Irrigation, is expected to benefit a combined 6000 farmers in Bugesera and Ngoma districts.
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