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Rwanda: Efforts Underway to Secure Contractor for $30m Five-Star Hotel in Southern Province

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The search for a contractor to build a $30 million five-star hotel in Rwanda’s Southern Province has resumed, with multiple companies expressing interest after the initial investor failed to meet requirements, The New Times has learned.

Kharfan Twagiramutara, Chairperson of RMK Ltd–a Public-Private Partnership company owned by Muhanga, Kamonyi, and Ruhango districts along with the private sector–explained that the project had faced delays due to various challenges.

«We were in discussions with a Turkish company, facilitated by the Rwanda Development Board. However, after due diligence conducted through the Rwandan embassy in Turkey, we found that the company did not meet the required criteria. As a result, we terminated the agreement and reopened the search for a new contractor,» Twagiramutara said.

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Due diligence involves thoroughly investigating a company’s financial stability, legal standing, and operational capacity before entering into agreements to mitigate risks.

13 companies express interest

Following a renewed call for bidders, 13 companies–three from Rwanda and 10 from abroad–expressed interest in executing the project.

«After pre-selection, seven companies were shortlisted, and one will be chosen to undertake the project,» Twagiramutara noted, adding that they hope to get a contractor before the end of July.

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The hotel will be constructed on a 17.8-hectare site in Muhanga District, a designated satellite city, leveraging cultural tourism opportunities in the area.

Project developers plan to use a «Pre-finance in procurement for complex works or tenders» approach, where the contractor funds the construction and is reimbursed over time.

«We expect the company to complete the hotel in 20 months. Upon delivery, we will pay 30% of the cost immediately and the remaining amount over 10 years, with a 3% interest rate,» he explained.

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Boosting local economy

Valens Habarurema, Mayor of Ruhango District, emphasised the hotel’s potential economic impact, particularly for local farmers.

«Farmers will have a guaranteed market for their produce, including vegetables, fruits, and coffee. Those growing pineapples, for instance, can process and supply them to the hotel,» he said.

Additionally, revenue generated by the hotel will support social protection programs aimed at uplifting vulnerable community members.

Tapping into cultural and religious tourism

The hotel aims to address the shortage of accommodation for religious tourists visiting «Kwa Yezu Nyirimpuhwe,» a site in Ruhango District that receives 12,000 to 15,000 visitors per month.

It will also enhance cultural tourism, given the district’s rich historical sites such as Urutare rwa Kamegeri. This site is known for its connection to Kamegeri, a former kingdom chief who was burned alive after suggesting its use as an execution ground.