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Rwanda Transport Sector Review and Action Plan Rwanda Transport Sector Review and Action Plan Rwanda Transport Sector Review and Action Plan Rwanda Transport Sector Review and Action Plan | 2 AFRICA DEVELOPMENT BANK GROUP Rwanda Transport Sector Review and Action Plan AFRICA DEVELOPMENT BANK GROUP | 1 Rwanda Transport Sector Review and Action Plan © 2013. African Development Bank Group All rights reserved. Published 2013. Transport Sector Review and Action Plan - RWANDA No part of this publication may be reproduced, stored or transmitted in any form or by any means without prior permission in writing from the African Development Bank. The AfDB encourages printing or copying information exclusively for personal and non-commercial use with proper acknowledgment of AfDB. The AfDB (and editors) cannot be held responsible for errors, or any consequences arising from the use of information contained in this publication. The views and opinions expressed herein do not necessarily refl ect the views and policies of the AfDB or its Board of Governors or its Board of Directors or the governments they represent. The AfDB and its Board of Directors do not guarantee the accuracy of the data included in this publication and accept no responsibility for any consequence of their use. African Development Bank Group Temporary Relocation Agency Angle de l’Avenue du Ghana et des rues Pierre de Coubertin et Hédi Nouira B.P. 323 - 1002 Tunis - Belvédère www.afdb.org | 2 AFRICA DEVELOPMENT BANK GROUP Foreword The transport sector is one of the key engines of growth in and contributing to the broader goals of inclusive growth an economy. Improving the quality and reliability of transport by connecting rural communities to economic activities. infrastructure and services is a major building block for reducing transport costs, attracting domestic and foreign This study aims to complement these efforts by making investment, and expanding access to economic opportu- three key contributions. First, it identifi es the core transport nities. The Government of Rwanda recognizes that more infrastructure bottlenecks facing the country and options for needs to be done to address existing constraints in the mitigating these challenges. Second, it presents an action transport sector and to offset the geographical bottlenecks plan covering both the expansion of physical infrastructure which continue to drive the high transportation costs in and the development of sector structure, regulation, and Rwanda relative to the region. Indeed, an effi cient transport institutional capacity; distinguishing between the short-and sector is central to achieving the objectives of Rwanda’s longer-term measures. Third, it identifi es options for attract- Vision 2020 whose overarching goal is to transform the ing private sector investment and fi nancing including through country from a low-income agrarian economy to a medium public-private partnerships and concession arrangements income export-oriented and knowledge-based economy. are also identifi ed. The action plan is expected to guide the preparation of the second Economic Development and Realising the country’s Vision will require addressing at least Poverty Reduction Strategy and for informing dialogue on three key constraints. First, low investment in the develop- required reform measures. The study’s recommendations ment and maintenance of the physical infrastructure, and are also expected to support growth that is more inclusive second, limited participation of the private sector in the and also ensure that inclusive growth is sustainable through development and fi nancing of transport infrastructure. Third, a gradual shift towards green growth, in line with the African insuffi cient public sector capacity to deliver the required Development Bank’s Ten Year Strategy (2013-2022). transport services. Addressing these constraints will catalyse the development of modern transport infrastructure and We hope that the study’s fi ndings will be used to inform services, contributing to a reduction in the cost of doing the design and implementation of the required transport business and thus increasing the country’s competitiveness. sector reforms and look forward to sustaining dialogue and collaboration with various stakeholders as we join hands to Several policies and other interventions have been imple- support Rwanda’s economic transformation. mented by the Government to address the sector’s chal- lenges. All these interventions prioritize improving the quality Vice President, and reliability of transport infrastructure and services which is Country and Regional Operations and Policy critical for reducing transport costs, attracting investments, African Development Bank AFRICA DEVELOPMENT BANK GROUP | 3 Rwanda Transport Sector Review and Action Plan Acknowledgements This report is a result of the productive collaboration between the Transport and ICT Department; and the Private Sector the Ministry of Finance and Economic Planning; the Ministry Department. of Infrastructure; Transport Sector Working Group and the African Development Bank Country Offi ce in Rwanda and We are grateful to Innocent Kabandana, Angelique Zimu- the East Africa Regional Resource Centre. This collaborative linda, Claudine Simbi, and Lawson Laté for coordinating effort was led by a team comprising Edward Sennoga (Coun- the fi nancial and administrative aspects of the study. try Economist and Task Team Leader), Mamady Souare (Transport Engineer), Philippe Munyaruyenzi (Infrastructure Report design, editing and production were coordinated Specialist), Jeremy Aguma (Transport Economist), Mam by Edward Sennoga, Bryson Hull (copy editing consultant), Tut Wadda-Senghore (Transport Engineer), Kader Hassane Mercy Randa, Lawson Late, and Zeus Media Ltd. (Investment Offi cer) and Mr. Tom Opiyo Odago (consultant). Mr. Negatu Makonnen (Resident Representative, RWFO) Finally, our special appreciation to the Canada Technical provided overall guidance and the team also benefi tted Assistance Fund, managed by the African Development from the general direction provided by Mr. Gabriel Negatu, Bank, for the fi nancial contribution towards this work. (Director, EARC). The study benefi tted from the valuable feedback provided There is not enough space here to name each person who by several Government agencies including the Rwanda contributed immensely to the successful completion of Transport Development Authority, Rwanda Utilities Regula- this report. As a result, we seek the indulgence of all the tory Agency, Rwanda Civil Aviation Authority, RwandAir; and contributors in accepting this general acknowledgement from different departments at the African Development Bank and appreciation of their efforts. We are indeed very thank- headquarters including the Offi ce of the Chief Economist; ful to all of them. | 4 AFRICA DEVELOPMENT BANK GROUP Contents Abbreviations and Acronyms 7 List of Tables 9 List of Figures 11 Executive Summary 12 CHAPTER 1 CONTEXT AND OBJECTIVES OF THE STUDY | 23 1.1 Economic and Political Context | 23 1.2 Transport Infrastructure and National Development | 23 1.3 Rationale and Objectives of the Study | 24 1.4 Approach and Methodology | 25 1.5 Structure of the Report | 25 CHAPTER 2 OVERVIEW OF THE TRANSPORT SECTOR | 27 2.1 Introduction | 27 2.2 Policy Framework | 27 2.3 Legal Framework | 28 2.4 Institutional Framework | 28 2.5 Financing Framework | 29 2.6 Conclusion and Recommendations | 29 CHAPTER 3 STATUS OF TRANSPORT SECTOR | 31 3.1 Introduction | 31 3.2 Air Transport | 31 3.3 Road Transport Infrastructure | 34 3.4 Road Transport Services | 40 3.5 Water Transport | 44 3.6 Rail Transport | 46 3.7 Pipeline Transport | 48 3.8 Urban Transport | 48 3.9 Regional Transport | 51 3.10 Transport Sector Human Resource Capacity | 57 3.11 Transport Sector SWOT Analysis | 58 3.13 Key Focus Areas | 59 AFRICA DEVELOPMENT BANK GROUP | 5 Rwanda Transport Sector Review and Action Plan CHAPTER 4 TRANSPORT SECTOR INVESTMENT PROGRAMME | 63 4.1 Introduction | 63 4.2 Transport Policy Sector Programme (2008 – 2012) | 63 4.3 Strategic Transport Master Plan for Rwanda | 63 4.4 Proposed Transport Sector Investment Programme | 66 CHAPTER 5 IMPACTS OF TRANSPORT PROJECTS ON INCLUSIVE GROWTH | 89 5.1 Introduction | 89 5.2 Transport and Environment | 89 5.3 Transport and Gender | 90 5.4 Transport and Poverty | 91 5.5 Inclusive and Green Growth | 92 CHAPTER 6 FINANCING OF TRANSPORT SECTOR INVESTMENT PROGRAMME | 95 6.1 Introduction | 95 6.2 Public Sector Financing | 95 6.3 Development Partner Participation | 97 6.4 Private Sector Financing | 97 | 103 CHAPTER 7 MONITORING AND EVALUATION FRAMEWORK 7.1 Introduction | 103 7.2 Capacity Building Monitoring Framework | 103 7.3 Infrastructure and Services Monitoring and Evaluation Framework | 103 7.4 Transport Indicators | 109 | 113 CHAPTER 8 IMPLEMENTATION AND WAY FORWARD 8.1 Introduction | 113 8.2 Role of Government of Rwanda | 113 8.3 Role of the Private Sector | 113 8.4 Role of Development Partners | 113 | 6 AFRICA DEVELOPMENT BANK GROUP Abbreviations and Acronyms AADT Average Annual Daily Traffi c ADT Average Daily Traffi c AfDB African Development Bank AMO Aircraft Maintenance Organization BOT Build Operate and Transfer CAAs Civil Aviation Authorities CAP Corrective Action Plan CASSOA Civil Aviation Safety and Security Agency CDS Corridor Diagnostic Study COMESA Common Market for Eastern and Southern Africa CPCS CPCS Transcom Limited CSP Country Strategy Paper DRC Democratic Republic of Congo EAC East African Community EDPRS Economic Development and Poverty Reduction Strategy ESIA Environmental and Social Impact Assessment EU European Union
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