Rwanda secures Rwf72.3bn loan from WB for infrastructure projects in satellite cities

Rwanda has secured $95 million (about Rwf72.3 billion) funding from World Bank’s International Development Association to support the country’s urbanisation strategy.
WB Rwanda chief Yasser El-Gamal (left) and Gatete exchange documents after signing the funding agreement on Wednesday in Kigali.  (Courtesy)
WB Rwanda chief Yasser El-Gamal (left) and Gatete exchange documents after signing the funding agreement on Wednesday in Kigali. (Courtesy)

Rwanda has secured $95 million (about Rwf72.3 billion) funding from World Bank’s International Development Association to support the country’s urbanisation strategy. 

The project supports the development of basic infrastructure in six secondary cities, according to a statement from the local World Bank office.

 

Rwanda is building six satellite cities across the country namely; Muhanga, Rubavu, Rusizi, Nyagatare, Huye and Musanze under the second Economic Development and Poverty Reduction Strategy (EDPRS II) that ends in 2018.

 

The funding will also support activities that will enhance economic development in the secondary cities.

 

“The project will provide an integrated package of support to address key challenges associated with Rwanda’s urbanisation, such as access to basic infrastructure required to improve living conditions and spark economic activity,” said Claver Gatete, the Minister for Finance and Economic Planning, at the deal signing ceremony on Wednesday.

Under the project, informal areas will be upgraded to promote inclusive urbanisation, and capacity building for district governments to improve urban management, the minister said, according to the statement.

The funds will support development of roads and drainage systems, as well as solid waste management, and sanitation projects.

“The World Bank is delighted to be contributing to Rwanda’s sustainable development through this new operation which supports the government’s policy of prioritising the development of secondary cities to serve as regional pull factors for urbanisation through service provision, local economic development and job creation,” said World Bank Rwanda country manager, Yasser El-Gamal, at the signing ceremony in Kigali.

The facility will also help create an enabling environment for local economic development, roads and associated infrastructure improvements to connect different small–and–medium enterprise centres (commonly known as Agakiriro), commercial areas, industrial parks, as well as business development and employment centres.

Under the project, 86 hectares of unplanned settlement housing about 19,000 residents in Biryogo, Rwampara, Kiyovu and Agatare cells in Nyarugenge District, City of Kigali will be upgraded.

In addition, over 500,000 people in the six satellite cities will directly benefit from this project, empower technical staff in the secondary cities and help strengthen the capacity of City of Kigali to manage urban areas.

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