Financial constraints delay delivery of $2.6 million Nkombo boat II

By The Inspirer

The procurement of a boat that would ensure rapid and safe maritime transport on Lake Kivu waters for various purposes including for trade, education and healthcare, especially for the Nkombo Islanders, has been delayed owing to financial constraints, it has emerged.

According to information from the Ministry of Infrastructure, the boat will mainly ensure safe and reliable Lake Kivu transport in general, particularly connectivity to Nkombo Island – one of the 18 sectors making up Rusizi District of Western Province.

The 29.7 square kilometre Island is one of the 18 sectors making up Rusizi District in Western Province. The Island, which is made up of five cells, is home to 18,700 people, according to information from its leadership.

The report of the Auditor General for State Finance in the financial year 2019/2021 noted the delay in execution of the contract for the supply of Nkombo boat II.

It indicated that on May 10, 2018, RTDA in collaboration with the Ministry of Defence signed the contract worth over $2.6 (about Rwf2.7bn in the current exchange rates) – taxes excluded – with Avalon Steel Project for the supply of Nkombo boat II.

The initial contract period was 336 days effective, meaning that the initial contract period was April 11, 2019. However, the report indicated that Avalon Steel Project was provided with three contract extensions totaling 903 days. This implies that the new date for Nkombo boat II delivery was September 2021.

On Saturday, September 18, 2021, Imena Munyampenda, Director General of Rwanda Transport Development Agency (RTDA), told the Parliament’s Public Accounts Committee (PAC) that the main issue that delayed the delivery of the boat is lack of timely access to the needed funds.

It was during PAC’s public hearings in which officials from RTDA were responding to public asset mismanagement cases that were exposed by the Auditor General (AG)’s 2019/2020 report of State Finances.

PAC vice Chairperson, Beline Uwineza wanted to know whether the boat is already complete as the September deadline was coming to an end.

“This boat issue was also discussed during the previous report. We have realised that there was no expedition for its delivery,” she said.

The general progress of the boat supply was at 57 percent as per the supervision report of August 2020, the audit indicated.

On November 24, 2020, the audit team carried out physical verification to assess the progress of construction of this boat and noted that the assembling activities were not yet started, the report said, adding that the assembling materials were found still sealed in a container at the site.

The audit revealed that the excessive delay was due to inadequate project management, noting that by the time of audit in November 2020, slightly over $591,000 was paid to the contractor.

Munyampenda said that when they initiated the project, they needed a boat with the capacity to carry 150 people plus six cars and 10 tonnes of cargo.

The boat will transport vehicles that would be needed on the island while generating income to the community through supporting development initiatives, as indicated by the Ministry of Infrastructure.

But, he said that it became necessary that they also include a feeder boat – a small boat – with the capacity to carry 30 people and cargo amounting to six tonnes.

He told PAC that the feeder boat was already procured into the country.

For Nkombo Boat II, he said that “the main reason we extended the contract date for the contractor is that we have an issue of cash flow,” he said, indicating that there have been delays in paying the parts needed to build the boat.

However, currently, he said that all the materials needed to build the boat are in the country, noting that they are still negotiating with the Ministry of Finance and Economic Planning so that they get the funds required for the construction of the boat.

“We extended the contract period until April next year [2022] so that the contractor completed the boat construction works, then we will commission it,” he said.