PROJECT INFORMATION DOCUMENT (PID)

CONCEPT STAGE

Report No.: AB288

Project Name / RWANDA URBAN INFRASTRUCTURE & CITY MANAGEMENT PROGRAM
Region / AFRICA
Sector / Sub-national government administration (50%);Sanitation (50%)
Project ID / P060005
Borrower(s) / Government of Rwanda
Implementing Agency
Ministry of Infrastructure
Address: BP 24,
Kigali, Rwanda
Contact Person: Monique Sevumba or Emmanuel Nyirinkway
Tel: 250-86576 Fax: 250-85755 Email:
Environment Category / [ ] A [ x] B [] C [ ] FI [ ] TBD (to be determined)
Safeguard Classification / [ ] S1 [X] S2 [ ] S3 [ ] SF [ ] TBD (to be determined)
Date PID Prepared / September 3, 2003
Estimated Date of Appraisal Authorization / May 3, 2004
Estimated Date of Board Approval / September 4, 2004
  1. Key development issues and rationale for Bank involvement

The proposed program would support the CAS objective to improve governance and effectiveness of public sector actions at the local level through city adjustment programs and by supporting GOR’s on-going decentralization strategy and urban management efforts. It would also contribute to the local economic development and employment generation CAS objective by providing economic infrastructure to enhance productivity and competitiveness and to create employment. . It is expected that provision of infrastructures and services to cities will enable them to strengthen urban–rural linkages and to play a more active role as market-city for the surrounding rural areas. By improving living conditions and social services in poor areas and slums and targeted AID prevention activities, the program would contribute to the human and social development CAS objective

The proposed operation will incorporate lessons from the World Bank experience in urban development, management and local service delivery expressed in the Africa Urban Sector Strategy and the OED urban sector review that advocate that, for being sustainable, infrastructure and service programs should be implemented by local governments . The IRC of the previous urban operation and the evaluation of the previous CAS in Rwanda argued for renewed support to the infrastructure sector as poverty reduction mean, and for simple project design more embedded into existing government structure. One of the other strategic and operational lessons taken away from similar experience in the Africa region is that development objectives cannot be pursued on a project-by project basis but in the framework of a long term program.

European Union and French Cooperation have supported small scale labor intensive urban infrastructure projects and local development plans in selected districts. Dutch cooperation is leading the decentralization support group and is experiencing budget support to pilot districts. USAID is building capacity of local accountants for budget preparation and execution at the district level. The project would build on these experience and work closely with these partners. Bringing extensive experience from the region in terms of improved urban management through local governments, IDA will be able to support consistent and incremental capacity building programs over an extended period and to consolidate efforts in the urban districts under a coherent framework. IDA is also in a position to mobilize significant capital investments resources for economic and environmental infrastructure development that are not available among other donors.

The borrower is very committed to go forward with this approach which reflects the PRSP and Vision 2020 strategies. Legal and institutional framework for effective decentralization and accountability as well as instruments for fiscal decentralization are in place. The Borrower and the cities have strongly requested IDA support for this new operation and drafted a project concept document that was discussed with IDA. The Government submitted a PHRD grant request to conduct sector work, feasibility and safeguards studies and prepared a PPF request for core preparation activities.

  1. Proposed objective

The primary development objective of the program is improve urban infrastructure and services delivery in Kigali and 5 secondary cities.

This will be accomplished along three lines : (i) physical investments, (ii) capacity building and (iii) appropriate mechanisms to ensure sustainable results. This would entails programs, to (i) develop programming and financing mechanisms of priority urban investments within a programmatic and participatory approach, (ii) upgrade infrastructure and services delivery in urban setting , (iii) assist urban local governments to improve local revenue mobilization, and financial management, (iv) assist GoR in operationalizing the fiscal framework and intergovernmental transfers and prepare mechanisms for urban PRSC, and (v) build the capacity of cities, local stakeholders and government to develop, implement and monitor urban strategies and programs

  1. Preliminary description

The program has a medium term goal in recognition of the fact that decentralization and local government capacity building are dynamic process associated with risks, thus whose objective can only be achieved over time. In this regard, the program should be conceived over a medium term horizon with two phases. A Sector Investment Loan would be the instrument used to develop the program during the first phase over a 4-year period in Kigali and 5 secondary cities. The geographic coverage is limited in this phase in order to build capacity and momentum in the use of urban planning and management tools and to consolidate progress in the implementation of the city contracts. The 4-year time framework would also allow to develop appropriate funding mechanisms for implementing budget support programs in an ulterior phase (PRSC), that would expand this approach to all urban districts.

The SIL would include three components :

(i)  Urban Districts Programs for Kigali and for five secondary cities (Butare, Kibuye, Kabuga, Nyanza and Ruhengeri). This component aims at introducing tools for better programming and managing cities and build the capacity of local governments. Local consultants would support executive and consultative bodies of the city to prepare urban, financial and organizational audits with the participation of the communities and the local private sector. Based on the outcomes of these audits, district representatives and communities will define a City Contract which would include : (a) a priority investment program to build or upgrade local level infrastructures , (b) a priority maintenance program for these investments and (b) a city improvement and capacity building program to enhance management and resource mobilization. These programs will build on existing Local Development Plans. The investment programs would focus on city level infrastructure as opposed to community micro-projects but would provide a framework for CDD to integrate the Decentralization and Community Development Project approach. This city contract will be approved by the City Council and the CDC and signed between the mayor and the Ministry of finances. Audits will be prepared during project preparation phase in order to sign contracts and start implementation at project launch.

(ii) A specific program for the Capital City Kigali of priority large-scale economic and environmental infrastructure. To support economic development, improve the urban environment and contribute to facilitating the functioning of the City of Kigali, the program would include large investments that are beyond the sole responsibility of the City (roads, drainage, solid waste management) . This component could also include a slum upgrading and prevention program which would require specific implementation methods. This program design will be defined during project preparation.

(iii) An institutional development program. This component would support (i) sector studies and implementation of selected reforms in the fields of decentralization, land management, urban environment and development, infrastructure delivery and preparation of specific studies and activities for transition to urban PRSC, (ii) capacity building of local, provincial and national institutions in these fields and of local entrepreneurs, (iii) monitoring and evaluation system, annual external audits and (iv) the operating costs of a small coordination unit which would play an advisory role and collect essential data. During preparation, several studies will be conducted (land management, upgrading strategy, urban transport review, urbanization issues, intergovernmental transfers) to identify areas in need of specific supports.

  1. Safeguard policies that might apply

The program is designed to have beneficial impacts on the population in terms of better service delivery and improvement of living conditions in slum areas. Potential negative impacts will be mitigated as they would have been identified at the early stage of urban audits. Consequent works program would be designed along WB technical and policy guidelines (health and safety, environmental and social) that will be also specified in the bidding documents.

Applicable? / Safeguard Policy
If Applicable, How Might It Apply?
[x ] / Environmental Assessment (OP/BP 4.01)
Environmental assessment (including environmental, social and environmental management plan) will be carried out before appraisal. See par. IIIA
[x ] / Involuntary Resettlement (OP/BP 4.12)
A resettlement framework will be defined as part of the environmental assessment to be carried out during project preparation. It will address the slum upgrading component as well as the upgrading of urban infrastructure.
[x ] / Cultural Property (draft OP 4.11 - OPN 11.03)
Cultural Properties will be identified during urban audits and mitigation measures defined.

The project is designed to gradually improve the urban environment through rehabilitation and upgrading of local infrastructures. At this stage of preparation and before the production of urban audits, the proposed local investments are not fully identified but would typically include small roads and pathways, school and health facilities, city halls, sports and recreational facilities, sanitation, drainage and environmental improvement, markets, stations and other economic investments. Kigali structuring infrastructures would include: upgrading roads, drainage works, landfill rehabilitation. The program will also define a slum upgrading component. This component would seek to gradually improve neighborhood infrastructures (mainly pathway, drainage, social facilities) without disrupting the social and urban tissues. Land tenure issue will not be addressed at this stage.

The following steps have been factored into project preparation to mitigate potential negative impacts :

(i) An environmental and social assessment will be conducted during project preparation and will have four distinct components :

(a)  an environmental impact assessment at the project level that will also help develop guidelines for environmental impact screening for small scale infrastructure projects,

(b)  a social assessment to ensure adequate consideration of social issues, social mobilization, consultation and participation mechanisms and avoid any social disruption in a sensitive country. Specifically, issues related to gender, vulnerable households, social groups relationships, representativeness and participation of different stakeholders and social groups, access to land assets will be addressed,

(c)  a resettlement framework to guide upgrading activities in slum areas and define when a more detailed RAP is needed and

(d)  an environment and social management plan which will provide a tool and timetable for implementation that will address environmental and social issues.

(2) Urban audits and technical studies: terms of reference will specify stakeholder consultation and environmental screening requirement along WB policies and technical guidelines. All physical works identified to achieve project objectives will be designed in full compliance with environmental, social and health and security directives.

(3) Tender documents : These environmental, social and health and security directives will also be specified in bidding documents.

  1. Tentative financing

Source: / ($m.)
BORROWER/RECEPIENT / 5
INTERNATIONAL DEVELOPMENT ASSOCIATION / 40
Total / 45
  1. Contact point

Contact: Sylvie Debomy

Title: Sr. Urban Planner

Tel: (202) 473-0602

Fax: (202) 473-8249

Email: