The Minister of Finance and Economic Planning, Yusuf Murangwa, told Parliament on February 12, 2026, that the overall cost of financing the new airport has decreased after the government shifted from more expensive commercial borrowing options to concessional funding arrangements.
He made the remarks while presenting a draft amendment to Law No. 018/2025 of June 30, 2025, which sets out the national budget for the 2025/2026 fiscal year.
Bugesera International Airport is one of Rwanda's flagship infrastructure projects and is expected to play a central role in boosting economic growth and positioning the country as a regional and continental aviation hub.
According to Minister Murangwa, initial financing plans included borrowing nearly $400 million, primarily through commercial financial institutions, which typically charge higher interest rates. However, continued engagement with development partners, particularly the World Bank, resulted in a 95% guarantee on funds allocated for the airport's construction.
The guarantee has enabled Rwanda to secure significantly lower interest rates and more flexible borrowing terms.
'This arrangement allows us to draw funds when needed,' Murangwa said. 'Construction activities are ongoing and will not be interrupted. The key difference is that financing will now be cheaper, and we will access funds based on actual requirements.'
He added that while financing costs for the airport have declined, allocations for other government projects have increased by nearly Rwf 250 billion.
Construction progress
In May 2025, Jules Ndenga, Chief Executive of Rwanda's aviation company, told IGIHE that major works, including the runway, drainage systems, and other critical infrastructure, were completed at the end of 2024. Construction has since continued on terminal buildings and related facilities.
The airport is being built by a consortium comprising Mota-Engil of Portugal, which initiated the project, UCC Holding of Qatar, and Consolidated Contractors Company of Greece. The three firms formed a joint venture known as UMC, which holds the construction contract with the government.
The first phase of the project has created approximately 2,000 jobs, with total employment expected to reach 6,000 once the airport is fully completed.
Beyond direct employment, the project has stimulated local economic activity in Bugesera District. New businesses, including restaurants in areas such as Nyabagendwa and Nyamata that cater to construction workers, have emerged, creating additional jobs and income opportunities for residents.
The airport is scheduled for completion in 2027. Upon conclusion of the first phase, it will have the capacity to handle seven million passengers annually. A second phase, planned for completion in 2032, is expected to expand capacity to 14 million passengers per year.
Middle Eastern carrier Qatar Airways holds a 60% stake in the airport project, which is estimated to cost around $2 billion.
IGIHE
Source : https://en.igihe.com/news/article/why-rwanda-lowered-financing-costs-for-bugesera-airport
