World Bank Approves a Grant of US$180 million for Emergency Urban and Social Rehabilitation in Kinshasa

Press Release No:2007/310/AFR

Contacts In Washington: Herbert Boh ;In Kinshasa: Louise M. Engulu

WASHINGTON , March 29, 2007 – The World Bank Board of Executive Directors today approved a grant of US$180 million to help fund emergency rehabilitation of basic urban and social infrastructure to improve access to essential services in the Democratic Republic of Congo (DRC), a country emerging from conflict.

The grant is the World Bank’s first-ever funding operation approved on a fast-track basis within the framework of the Bank’s recently adopted rapid response policy. Under the policy, the World Bank commits to swiftly deliver assistance to countries requesting aid to address an event that has caused, or is likely to cause, a major adverse economic and social impact associated with man-made or natural crises, while ensuring adequate supervision of the resources.

The project approved today, which had been in preparation since December 2006, addresses urgent rehabilitation and social needs and hence provides tangible benefits to the Congolese people, especially the poorest, in the capital city of Kinshasa , which is vital to DRC’s political and social stability.

“We regret the violent clashes of last week in Kinshasa and the unfortunate loss of lives and would like to urge all parties, including the government,, to work together to create a political environment in which poverty reduction and development activities can be carried out successfully,” said Pedro Alba, the World Bank Country Director for the Democratic Republic of Congo, Congo-Brazzaville, Burundi and Rwanda.

The emergency procedures provided by the new policy reduce delays, including those encountered internally at the Bank. “This will help speed up the provision to people in Kinshasa of bed nets, as well as access to education and roads,” he added.

Alba explained that given weak institutions in the country, the Bank had put in place appropriate safeguards to ensure that the money gets to the intended beneficiaries.

A total of US$45 million of the US$180 million grant approved will fund recovery in the education sector through support to select recurrent, non-salary expenditures for primary and secondary schools throughout the country.

“This component of the project will test and launch an effort that will result in a reduction of school fees paid by parents,” said Xavier Devictor, the World Bank’s Task Team Leader for the project.

A second component funded by US$50 million of the US$180 million grant will provide additional resources for completing a Bank-supported process for settling the debt accrued by the government to its domestic suppliers during the years of war and instability.

“Payment of domestic debt arrears will inject resources likely to increase the available working capital for private sector activities and improve the investment climate as well as relations between the government and its suppliers,” said Alba.

A third component of the project, to which some US$42 million are devoted, will focus on the rehabilitation of priority urban roads in Kinshasa, including about 40 km of access roads to poor neighborhoods that are home to an estimated 800,000 inhabitants.

The fourth component – worth US$25 million – will finance the expansion of sanitation services and a potable water distribution network to poor neighborhoods of Kinshasa from the recently-rehabilitated water treatment plant at Lukaya, in the western part of the capital.

“Implementation of this component is expected to provide access to safe water to approximately 150,000 people who currently rely on inadequate sources,” said Jean-Michel Happi, the World Bank’s Country Manager for DR Congo.

The final component of the project, for which the grant makes available US$13 million, will finance a malaria reduction and prevention initiative in Kinshasa . It notably funds the distribution of up to three long-lasting insecticide-treated bed nets per household in Kinshasa (about 2 million in total) in an effort to curb malaria-related infant mortality.

Devictor said that available studies suggest that this could prevent an estimated 30,000 deaths among under-five year old children over the life of the project.