The Rwanda Development Board (RDB) is losing untapped tourism revenue as the country’s only cruise boat remains grounded despite massive repair efforts, says a report from the Auditor-General.

In December 2009, RDB’s tourism department, amid pomp, launched a state-of-the-art cruise boat on Lake Kivu with hope that it would boost tourism revenues on the scenic water body.

Secured at a cost of Rwf308 million ($485,000), the 20-seater cruise boat named ‘Umunezero’ was hyped as a new addition to Rwanda’s budding tourism potential but two years later in 2011, the Italian-built boat developed mechanical problems, rendering it immobile.

“For these three years the boat has been grounded (idle), RDB has not only lost potential tourism revenue from the cruises but also promotion of tourist activities in the country has been negatively affected,” the AG report said.

According to the 2013 Auditor-General’s Report, the cruise boat remains grounded three years later despite RDB spending millions on securing spare parts to repair the now rotting water facility.

“The boat secured at a cost of Rwf308,134,375 in 2008 has remained grounded for three years since May 2011 and requires significant expenditure for repairs and procurement of a new engine to get it back into operations,” said the report.

According to the AG, the development board’s acquisition of the modern boat was in a bid to ease connection between Rubavu and Rusizi districts, and others along Lake Kivu, for high-end tourists.

The boat was the only cruise boat in the country to address the high-end tourists’ needs in the Western Province.

However, in May 2011, the boat’s propeller got damaged during one of its cruises and sunk in the lake. The boat has since been grounded.

“Procurement of the spare parts to replace the damaged propeller was poorly handled and delayed for over one and half years up to December 4, 2012 when it was installed.

“Upon fixing the propeller, management realised that the boat could still not operate because other parts of the boat had become damaged during the period it was grounded, and required other spare parts to fix them,” the Auditor General Obadiah Biraro says.

The AG further says that additional spare parts were acquired in April 2013 at an extra cost of Rwf2,418, 661 on top the initial repair costs incurred to fix the propeller and other parts.

For two more months, technicians tried to fix the grounded boat but, according to sources, because the boat had been ground for a long time, it significantly affected the functioning of the engine.

A test drive was conducted by management on July 16, 2013 and it was found out that the engine power was not as strong and was consuming more fuel than normal, and was subsequently grounded.

“I understand that management has contacted RPPA requesting for a no objection to use single source procurement method to purchase a new boat engine. This will require RDB to incur additional costs to put the boat back in operation,” Mr Biraro says.

Badly damaged

However, an international call for bids sent out by RDB in September 2011 seen by Rwanda Today shows that the once powerful two-engine boat could be badly damage beyond just the propeller.

The standard bidding document signed by the former Chief Finance Officer James Kamanzi calls for the supply of a 250HP Mercury Verado Electronic Engine as well as many other spare parts including power heads, shafts, filters and cylinders.

About Rwf40m has been spent on procuring additional spare parts from April 2013 to date. Sources at RDB indicate that the cruise boat which was built by Italian company, FB designs was not insured.

The boat which was becoming popular among tourists travelling between Rubavu and Rusizi passing the touristic islands of Napoleon, Amahoro and Nkombo is currently rotting away in Karongi.

According to sources, the boat had a lifetime of at least 10 years before any repairs if properly handled, meaning that mismanagement could be behind the breakdown.

“Our role as Government was to demonstrate that boat tourism on Lake Kivu was viable. We believe we achieved this but we are not the best suited to run the boat business. Private players are. The current status is that RDB management took a decision to privatise. The reason we are privatising is to bring experts to manage the boat as it is a specialised business. They will also use their expertise to ensure professional maintenance and quick intervention to ensure safety,” said RDB Chief Finance Officer Mark Nkurunziza.