Rwanda and WB sign financing agreement to support urbanization strategy

{The government of Rwanda and the World Bank(WB) have signed today an International Development Association (IDA) credit agreement of US $95 million to support Rwanda’s urbanization strategy. The Project supports the development of infrastructure and local economic activities in six secondary cities. }

The Minister of Finance and Economic Planning Claver Gatete signed for the Government of Rwanda and the World Bank Country Manager Yasser El-Gamal signed on behalf of the World Bank Group.

“The project will provide an integrated package of support to address key challenges associated with Rwanda’s urbanization such as access to basic infrastructure to promote livability and local economic development, upgrading of informal areas to promote inclusive urbanization and building the capacity of district governments for better urban management,” Said Claver Gatete, the Minister of Finance and Economic Planning said.

The Project will finance provision of basic infrastructure to enhance living conditions for residents in six secondary cities, namely Muhanga, Rubavu, Rusizi, Nyagatare, Huye, and Musanze and support local economic development in these cities. Eligible investments are those that are directly under the mandate of the district governments such as roads, drainage, solid waste management, and sanitation.

“The WB is delighted to be contributing to Rwanda’s sustainable development through this new operation which supports the Government’s clearly articulated policy of prioritizing the development of secondary cities to serve as regional pull factors for urbanization through service provision, local economic development and job creation.” Said Yasser El Gammal World Bank Country Manager for Rwanda

To create an enabling environment for local economic development, roads and associated infrastructure improvements will be financed to connect different Agakiriro Centers, commercial areas in the urban core, industrial parks, and Business Development and Employment Centers. The project will also support the upgrading of an 86 hectares of unplanned settlement accommodating almost 19,000 residents in four cells of Nyarugenge District in the City of Kigali, including Biryogo, Rwampara, Kiyovu and Agatare.

Over 500,000 people in the six secondary cities will directly benefit from this project as will the 19,000 residents of the four cells in the unplanned settlement of Nyarugenge District in the City of Kigali who will benefit from access to improved infrastructure. Additional project beneficiaries include the district governments of the secondary cities and their technical staff, as well as the City of Kigali, as the project will strengthen its capacity to manage urban areas.