Burundi government last week signed an agreement worth 19.7 million Euros with the European Union alongside the African Development Bank to strengthen capacity and upgrade the cargo handling volume in the central corridor.
Burundi’s finance minister signed for amount of 19.7 million Euros which is set to rehabilitate and provide the efficiency at the port and Lake Tanganyika transport system in Bujumbura to boost its competitiveness.
“As part of the Lake Tanganyika transportation corridor development project, the first phase is related to the renovation of the port of Bujumbura. The amount of financing is 19,700 million of Euro for a duration of 3 years,” said Domitien Ndihokubwayo the Burundi Minister of Finance.
“The port of Bujumbura will allow Burundi to no longer stay landlocked, to contribute but also to fully benefit from positive spin-offs of the regional integration,” the European Union tweeted.
During the launching a $31 million project of the Bujumbura port renovation activities as a two year project of the Japan International Cooperation Agency (JICA) in September last year, Burundi President Evariste Ndayishimiye said that the Port modernization project is a source of pride for Burundians and that there is a need to work hard to produce more to facilitate the transport, production and the opening up of the country in relation to Southern Africa, the Eastern African and to the cost line.
According to JICA study plan, made in June 2014, Burundi depends on imports for almost everyday product. Coffee and Tea constitute the main amount of the exports.
At the same time transport costs occupy respectively proportions of 35% and 45% in import and export products respectively, reducing transport costs is therefore a pressing issue for the acceleration of economic growth.
“The port construction which aims to promote the lake transport and reduce transport costs is an essential project to raise the Gross Domestic Product per capita by increasing it from 137 USD in 2008 to 720 USD in 2025 according to the objectives of the Burundi 2025 vision,” a study plan indicates.
The same study plan shows that once the execution of the project kicks start under JICA cooperation, it will require the amount estimated at 141.8 million BIF to be borne by Burundian Part. The total lead time for the project is 28 months.
It should be noted that the port of Bujumbura was built in the 1950s with a designed capacity of 200,000 tons and it was expanded in the period of 1989-92 and the capacity expanded to 500, 000 tons.
