Projects worth billions of francs have been on hold for the past 10 years after the Economic Community of the Great Lakes Countries (CEPGL), which comprises Rwanda, Burundi and the Democratic Republic of Congo, failed to agree on issues despite their shared commitments.

Geopolitical instability, financial constraints and poor co-ordination are alleged to have delayed many key projects in infrastructure, energy, services and free movement of labour, which would have taken the bloc to its desired economic development.

Among the biggest projects targeted by the bloc was the construction of the Rusizi 3 hydropower plant, which was meant to generate at least 147 megawatts of electricity but has stalled due to management issues and grandstanding among member countries.

According to Denis Rubangura, a board member of Safkoko Ltd, a company partially contracted by CEPGL to build roads in the area meant for the plant’s construction, contract management and lack of will between states have been the obstacles.

“Although the countries have of late shown an interest in the power plant and the CPGL will in April launch a tender for willing bidders to construct the dam, supplementary projects to facilitate the construction have delayed,” Mr Rubangura said.

READ: Concern over stalled projects

The European Union had agreed to sponsor hundreds of kilometres of roads to the tune of 25 million euros (Rwf19.4 billion) in 2013, Mr Rubangura said. These included numerous murram and asphalt roads to connect border areas in the neighbouring countries and ease economic prospects in the region.

Breach of contract

“The construction of roads is however not going as planned,” he said. “Rwanda and Burundi cancelled the contracts halfway while Congo failed to execute expropriation.”

Officials said Rwanda cancelled a road construction deal because the contractor had not submitted the required bid securities. Emmanuel Seburikoko later went to court seeking Rwf7 million as compensation for alleged breach of contract. The Commercial High Court is yet to give its verdict.

The government however remains optimistic on the upcoming Rusizi 3 hydropower plant although construction should start after the rehabilitation of Rusizi 1 and 2 plants.

These would, in total, generate 500 MW of electricity. Minister for Finance and Economic Planning Claver Gatete told Rwanda Today that there has been progress at the diplomatic level although harmonisation of funding channels and technicalities took a bit of time.

“We have number of financiers, including the World Bank group, African Development Bank, Kfw, the European Union and several organisations on board who agreed on the financing aspects,” Mr Gatete said. “We are now working on the modality, the nature and structure of this financing and how they are going to be connected in terms of financing.”

Reports say there has been bickering between the three member states over who should carry on the implementation, prompting the donors to withhold a portion of the funds. At least $350 million out of the required $500 million from donors had been pledged for the Rusizi 3 project.

However, the member states of the Kivu Belt bloc are yet to establish mechanisms to ease free movement of labour and goods to boost the sluggish trade and investment in the area.

Travellers between Rwanda and Burundi do not pay for a visa because the countries are bound by the East African Community protocols but the situation is yet to change with the DRC. Rwanda and DRC have in the past accused each other of levying high charges of entry visa fees for unreasonable reasons triggered by diplomatic and military conflicts.

Foreign Affairs Louise Mushikiwabo said this hampered the bloc’s vision, although the DRC recently showed signs of compromise by urging Rwanda to organise a summit for the heads of state to chart the way forward.

“We have proposed changes to the fundamental text of the CPGL, and only the heads of state summit can adopt the changes we made as ministers; so, we welcome the proposal by the DRC government on the summit,” she told the Parliamentary Committee in charge of Foreign Affairs.

READ: Stadium project remains pipe dream as KCC misses deadline