Rwanda - Second Urban Development Project : Additional Financing

Overview & Synopsis

​To improve access to basic services, enhance resilience and strengthen integrated urban planning and management in the City of Kigali and the six secondary cities of Rwanda. The RUDP II Second AF of 10 million dollars and the reallocation of 5.12 million dollars equivalent of savings will cover the financing gap associated with the cost of works and supervision to rehabilitate wetlands and prevent flooding under Subcomponent 1b: Evidence-based, sustainable wetland management, flood risk management and greenhouse gas monitoring. The Second AF and savings will not be used to finance new activities or expand the scope of the Project. Significant cost overruns are due to higher-than-expected bids that delayed signing of contracts and hindered timely procurement as well as later implementation delays, inflation, and deterioration of exchange rates. Costs were also affected by critical design improvements needed related to hydraulics, structures, landscape, and public amenities that were approved following a comprehensive review of the initial designs and on-site conditions. These design revisions were based on physical conditions, environmental requirements, and national and international standards for the rehabilitation and restoration of the wetlands taking place in an urban area. The financing proceeds for the Second AF will be provided through a grant approved by the SURGE, contributed by the Kingdom of Denmark. Activities financed in Subcomponent 1b include: (i) Technical assistance (TA) services to supervise the implementation of detailed designs for wetland rehabilitation works in the four prioritized wetlands of Kigali (Nyabugogo, Rugenge-Rwintare, Gikondo and Kibumba); (ii) Investments in the rehabilitation of the four wetlands to enhance wetland functions, reduce flooding and promote access and use of wetlands by communities and tourists; (iii) knowledge development, management, dissemination and outreach, and partnerships to support effective monitoring and profiling of the rehabilitation work; and (iv) local supervision and oversight, monitoring, and E&S risk management. The remaining financing gap will be covered by identified savings in other components of the Project.