The Road maintenance
is well known in Rwanda for financing the maintenance
of the national road network. However can you provide
us with a brief overview of the steps that marked
the development of the Road Maintenance Fund since
its creation?
As the First Generation Road Fund, the National
Road Fund was attached to the Central Government.
It was actually a division within the Ministry of
Public Works, Transport and Communications. The
arrangement at the time was as follows: You program
the work on one hand, and you finance the programed
activities on the other. All this would be the responsibility
of one Department. This kind of arrangement was
later reviewed because it did not provide a secure
and stable flow of funds for roads. The Fund was
generally characterised by the following management
problems:
· There was no oversight board.
· The Fund relied on earmarked revenues,
not always related to road use.
· The Fund had a weak legal basis
· The Fund did not have published financial
rules and regulations
· The Fund was not subjected to independent
technical and financial audits
To resolve these problems, a second generation road
fund was born and that is The Road Maintenance Fund
we have today. The Fund as it is today, has the
legal personality as well as the financial and administrative
autonomy. The main objective of the Fund is to finance
the maintenance of Rwanda's road network.
What is your major challenge for 2002?
The main challenge to the Fund at the moment is
the clearance of some maintenance backlog. The road
network was neglected for about six years before
the 1994 Genocide and the 1997 El- Nino rains contributed
to further road damage. The Government of National
Unity and Road Users have however, combined forces
in resourse mobilisation and about 70% of the network
is now in fairly good condition. The challenge for
us this year will be to elevate the road quality
condition to about 80%.
To your opinon, what are the main investment
opportunities in the sector?
Since only about 10% of the entire road network
is paved, there are great opportunities for construction
of paved roads as well as for financing arrangements.
Private Finance Institutions could extend to the
Roads Maintenance Fund affordable credits for rehabilitation
works on an agreed payback period. Other future
opportunities for private investors could take the
form of involvement in such schemes as Build Own
Operate Transfer( BOOT ), Build Operate Transfer(
BOT ), Build Transfer Operate( BTO ), Design Build
Operate Maintain( DBOM ), etc. It will however,
be for the Government to identify the need for a
particular scheme, determine whether it is suitable
for private financing or for development as a public-
private partnership. |
The emerging Africa
Infrastructure Fund was recently launched by the
UK Government to provide long-term debt financing
for infrastructure projects in Africa. What is your
opinion about this Fund, and other international
initiatives that aim at improving infrastructure
within Africa?
Such a Fund and similar international initiatives
would be very supportive to the landlocked Rwanda,
but my understanding is that the UK Government,
particularly DFID, is mainly involved with Good
Governance issues in Rwanda. Maybe in future DFID
will extend its involvement to the transport sector.
I personally didn't know about Africa Infrastructure
Fund meant for Africa. Through DFID, our Road Maintenance
Fund will probably request the UK Infrastructure
Fund to provide long-term financing for major rehabilitation
works.
What other steps could the Government take to
encourage more investment in the infrastructure
sector?
The on-going reforms in the Road sector should be
extended to include inter-alia development of the
institutional and regulatory framework; transformation
of some entities of the road administration into
corporate entities and expose them to the challenges
of a competitive market environment; and adaptation
of the system of financing, taxation, pricing and
insurance to meet the road sector's objectives.
For more investment in the Infrastructure sector,
the sector has to be taken to the market economy,
that is, it has to be commercialised. The Government
will need committed investors both local and foreign,
in the commercialised road sector.
On a more personal level, can you tell us more
about yourself, what brought you to the Road Maintenance
Fund and what would you wish to accomplish in the
near future?
Immediately after my university education, I was
attached to a private firm of consulting engineers.
This was an arrangement between that consultant
firm, and the university, which had nominated me
to stay on as a tutorial assistant. In time I became
a lecturer. That was in 1996. In July 1997, I came
home to Rwanda. I became a Construction Advisor
at the Lutheran World Federation. Later on, I became
a freelance consultant. After six months as freelance
consultant mainly in the road sector , I was nominated
by the Council of Ministers to be the Director of
the Road Maintenance Fund.
I would want to see the Fund providing a dedicated
financing arrangement that ensures a sustainable
and stable basis for road maintenance. With excellent
service delivery and operational efficiency by the
Fund, Rwanda shall in the course of time, have a
well maintained road network, probably the best
in Africa.
Regarding my aspirations for the future, I would
like to always be able to give my humble contribution
to the prosperity of Rwanda.
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