(Ecofin Agency) - The government of Rwanda just dropped a biogas production project worth $35 million. Officials of the National Industrial Research and Development Agency (NIRDA) told Rwanda Today that the decision was taken due to the lack of viability of the project.

According to Joseph Mungarurire, director general of NIRDA, challenges met to collect raw materials and raise funds necessary to its implementation caused the project to be dropped. “You cannot ask investors or the government to invest in a project that is not economically viable. And a project involving the production of biogas at 1,000 Rwandan francs (about $1.21) the litre for a sales price of 800 Rwandan francs (about $0.97) is not viable,” he said.

Following initial forecast which stated that the nation had significant potential for eco-farming such as jatropha, NIRDA recently revealed that the local climate did not favor the cultivation of plants necessary for the project.

Gwladys Johnson