The World Bank’s Board of Executive Directors on Tuesday approved a $95 million (approximately Rwf72 billion) International Development Association (IDA) credit line to support Rwanda’s urbanisation strategy.

This, according to a statement from the bank, will be done through targeted infrastructure development and support for local economic development in six secondary cities.

Through its main component, the Urban Development Project (RUDP) will support provision of basic infrastructure to enhance living conditions for residents in six secondary cities, which are Muhanga, Rubavu, Rusizi, Nyagatare, Huye, and Musanze, with an aim to 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,” reads the statement.

To create an enabling environment for local economic development, roads and associated infrastructure improvements will be made 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.

"The Urban Development Project will support secondary cities and the City of Kigali in creating more productive and loveable urban centers which over the long term will contribute to Rwanda's goal of becoming a middle income country,” said Meskerem Brhane, World Bank Program Leader and Task Team leader for the project.

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.

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