Kigali Seeks New Contractor to Revive Stalled Rugarama Housing Project
The City of Kigali is actively searching for a new contractor to breathe life into the long-stalled Rugarama housing estate project in Nyamirambo. This comes after the city terminated its agreement with the original developer, marking a significant step toward addressing years of inactivity on the project.
The 2,700-unit affordable housing initiative, which was launched in 2018 and supported by government subsidies, faced immediate challenges. Construction began but quickly halted, leaving the development dormant for several years. The Mayor of the City of Kigali, Samuel Dusengiyumva, provided an update on the project during discussions with members of the Public Accounts Committee (PAC) of Parliament. These discussions were part of an analysis of the Auditor General’s report covering the period ending June 30, 2024.
The report highlights that the project, initially intended to last seven years, was abandoned shortly after construction started. It notes that the city had subsidized the development of 2,700 affordable homes in Nyarugenge District, Nyamirambo Sector, and Rugarama Cell. Despite these efforts, the project has remained inactive for years, raising concerns about its future.
Dusengiyumva explained that the city is now collaborating with the Rwanda Housing Authority to revive the project. He mentioned that while government institutions had signed an agreement with the original contractor, the developer failed to meet the required standards. As a result, the contract was terminated. Additionally, the decision was made not to provide the planned subsidies.
The city council conducted an assessment and determined that the land allocated for the project could serve as equity for future developments. The land will be reclaimed by the city and used for other projects. In July, the city plans to inform the contractor that the land has been reclaimed and that they are seeking new investors to utilize the site.
Overview of the Rugarama Park Estate
Rugarama Park Estate, spanning 42 hectares, was designed to include 1,200 stacked townhouses. The pricing for these units varied, with one-bedroom studios expected to cost between Rwf12 million and four-bedroom units priced up to Rwf35 million. The target buyers for this mixed-income, mixed-use community would have incomes ranging from Rwf200,000 to Rwf700,000, and they would need to be first-time homeowners.
The project was estimated to cost $131 million and was expected to accommodate 14,000 residents. During the construction phase, it was anticipated to create hundreds of jobs, while also offering various economic opportunities in the area due to increased traffic and activity.
Future Steps and Implications
With the termination of the original contract, the city is taking proactive steps to ensure that the Rugarama housing project can move forward. By reclaiming the land and seeking new investors, the city aims to leverage the existing infrastructure and location to attract fresh interest in the development.
This effort reflects the city’s commitment to addressing housing shortages and providing affordable living options for residents. The involvement of the Rwanda Housing Authority underscores the importance of collaboration between different government bodies to achieve sustainable urban development.
As the city moves forward, it will be crucial to monitor how the new contractor approaches the project and whether it can overcome the challenges that led to the initial abandonment. The success of this initiative could set a precedent for future housing developments in the region, demonstrating the potential for revitalization and growth through strategic partnerships and innovative planning.
