Project Description
This summary covers an application by Mota Engil Engenharia e Construcao Africa, S.A, African Infrastructure Investments Managers, Pembani Remgro Infrastructure Managers, Harith General Partners Limited and Royal Bafokeng Holdings (Pty) Limited for MIGA guarantees covering their proposed equity investments into Bugesera Airport Company in Rwanda. The guarantees will be up to an aggregate of US$ 150 million, against the risks of Transfer Restriction and Inconvertibility, Expropriation, Breach of Contract, and War and Civil Disturbance for a period of up to 15 years.
The proposed Project entails the development, construction, financing, ownership and operation of the greenfield New Bugesera International Airport (“NBIA”) under a 25-years Concession Agreement. The Project site is approximately 27 kilometers from the City of Kigali, in Bugesera District which is in the South-Eastern region of Rwanda.
Environmental Categorization
The project is a category A under MIGA’s Policy on Environmental and Social Sustainability. Click here for the project’s Environmental and Social Review Summary.
Development Impact
The main development impact of NBIA is seen in the airport’s enabling role for the country’s development strategy which aims to leverage Rwanda’s positive investment environment, high doing-business scores, and perceived political stability in order to turn Rwanda into a regional hub for conferences, transport and tourism. NBIA will thereby promote stronger integration with regional economies.
The additional development impact of the Project is predominantly seen in employment creation (up to 1,800 construction jobs and initially 200 permanent jobs), generation of fiscal revenues via concession fees and corporate income tax, and FX generation via revenue collection predominantly in hard currency.
