Africa-Press – Rwanda. The Government of Rwanda has ratified a $27.95 million (approx. Rwf40 billion) loan agreement with the OPEC Fund for International Development to support the establishment of a Center of Excellence in Aviation Skills (CEAS).
The ratification, outlined under a relevant law of August 25, was published in the Official Gazette on August 28, and came into force immediately.
Signed in Vienna on June 17, the loan aims to finance part of the construction and equipping of a multidisciplinary centre of excellence in aviation with international standards to respond to the fast-growing demand for critical skills in this sector.
It aims to build a skilled local workforce to meet national and international aviation training standards and industry demand, according to its officials.
The aviation skills center will serve as a high-level institution designed to train pilots, maintenance technicians, and cabin crew, in line with certification requirements from both the Rwanda Civil Aviation Authority (RCAA) and the European Union Aviation Safety Agency (EASA).
The OPEC loan is expected to cover 51 per cent of the total project cost.
Specialised training equipment
A sub-component of the agreement focuses on the provision of specialised equipment, including airplanes.
The equipment includes one flight simulator, one upset prevention and recovery training (UPRT) aircraft, two new helicopters and flight crew training support material and equipment, according to annex to the law, seen by The New Times.
There is also aircraft maintenance technician training equipment, tools, and related simulation equipment, cabin crew training equipment, mock-up and service material, purchase of furniture and IT equipment for classrooms, and labs, and airline and airport courses.
Green infrastructure for aviation skills development
The infrastructure and training equipment component also has subcomponents, including infrastructure development, whereby planned activities feature support interventions to increase access to quality and green infrastructure for aviation skills development, while complying with regulatory requirements, which are critical for its skills training environment.
Investment under this part is expected to target required interventions while incorporating green building standards in line with Rwanda’s Green Building Minimum Compliance System.
These include academic buildings, dormitories and recreational facilities, including installation of a hybrid solar panel system, solar water heating system, green roof, rainwater harvesting system and green cooking system, customised furniture, and IT aviation equipment.
How funds will be used
Unless otherwise agreed between the government of Rwanda and OPEC Fund, the signed agreement provides for the components to be financed out of the proceeds of the loan, the allocation of amounts of the loan to each component and the percentage of total expenditures for items to be financed in respect of each component.
Aviation skills infrastructure and specialised training equipment are expected to cost at least $21.7 million, accounting for 60 per cent of the planned expenditure.
Institutional support for accreditation and certification is expected to cost some $2.6 million or 24 per cent, while project management, monitoring and evaluation will cost about $1.4 million.
Overall, the more than $27.9 million OPEC loan is expected to account for 51 per cent of the total expenditures for items to be financed in the project.
Loan terms and project completion date
Under the agreement, the borrower (government of Rwanda) has a grace period of five years, beginning on the date of the agreement, while the project completion date means November 30, 2029.
The borrower shall pay interest at the rate of 1.75 per cent per annum on the principal amount of the loan withdrawn and outstanding.
Meanwhile, in November 2024, Parliament approved a $23.6 million (approx. Rwf34 billion at current exchange rates) loan agreement between the government of Rwanda and African Development Bank (AfDB) also to help set up the same Centre of Excellence for Aviation Skills.
As Rwanda invests in the construction of its international airport in Bugesera and expands its airplane fleet, skilled personnel are required to manage, operate, and maintain these investments, according to the project developers.
As December 2024, RwandAir had 207 pilots, 13 of them women, while and 59 of the pilots were Rwandan.
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