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Rwanda: Rwanda Digital Acceleration Project (Digital Investment for Recovery, Resilience and Connectivity)

SUMMARY

STATUS
Approved
MEMBER
Rwanda
SECTOR
CRF-Economic Resilience/PBF
E&S CATEGORY
Category B
PROJECT NUMBER
000462

FINANCING

APPROVED FUNDING
USD100 million
FINANCING TYPE
Sovereign

TIMELINE

CONCEPT REVIEW
March 31, 2021
FINANCING APPROVAL
December 16, 2021
LATEST FIELD VISIT
February 2023

OBJECTIVE

To support Rwanda’s short and long-term recovery from the pandemic, and resilience to future pandemics by increasing access to broadband and selected digital public services, and strengthening the digital innovation ecosystem.

DESCRIPTION

The Project is a major national, multi-sector, whole-of-government digital-acceleration initiative centered on:

  • expanding digital adoption and access, by promoting digital access opportunities through last- mile connectivity, affordable smart devices, and broad-based digital skills acquisition;
  • enhancing digital public service capabilities (particularly in health and education sector) and productivity, by strengthening the national ID system, equipping the government with the ability to deliver securely more quality data-driven solutions, and enabling transactional e-services in key sectors; and
  • increasing Rwanda’s capacity to support digitally enabled innovation and productivity-gains, by strengthening the local digital innovation and entrepreneurship ecosystem, supporting tech firms to move from startups to growth and by developing Rwanda’s digital human capital.

The project will finance the following components:

Component 1: Digital Access and Inclusion (USD60.5 million)

Component 2: Digital Public Service Delivery (USD100.0 million)

Component 3: Digital Innovation and Entrepreneurship (USD29.5 million)

Component 4: Project Implementation and Institutional Coordination (USD10.0 million)

ENVIRONMENTAL AND SOCIAL INFORMATION

The loan will be co-financed with the World Bank (WB), which is the lead co-financier. The project’s environmental and social (ES) risks and impacts will be assessed in accordance with the WB’s Environmental and Social Framework (ESF). To ensure a harmonized approach in addressing the ES risks and impacts of the Project, and as permitted under AIIB’s Environmental and Social Policy (ESP), AIIB agrees that the WB’s ESF will apply to the Project in lieu of AIIB’s ESP. AIIB has reviewed the World Bank ESF and is satisfied that: (a) it is consistent with AIIB’s Articles of Agreement and materially consistent with the provisions of AIIB’s ESP and the relevant ES Standards (ESSs); and (b) the monitoring procedures that are in place are appropriate for the Project.

The WB has categorized the ES risks of the Project as “Moderate” (which is equivalent to Category B if AIIB’s ESP were applicable). Nine of WB’s Environmental and Social Standards (ESS) have been applied to the Project, namely: WB’s ESS on Assessment and Management of ES Risks and Impacts (ESS1); Labor and Working Conditions (ESS2); Resource Efficiency and Pollution Prevention and Management (ESS3); Community Health and Safety (ESS4); Land Acquisition, Restriction on Land Use and Involuntary Resettlement (ESS5); Biodiversity Conservation and Sustainable Management of Living Natural Resource (ESS6); Cultural Heritage (ESS8); and, Financial Intermediaries (ESS9). Some of the standards have been considered as relevant for precautionary reasons. The Project is expected to bring positive social outcomes to the community and will not have any large-scale, significant, and/or irreversible environmental and social impacts.

An Environmental and Social Management Framework (ESMF) and a Resettlement Policy Framework (RPF) have been developed and will guide the screening and preparation of site specific environmental and social assessment (ESA). These frameworks and assessments include the preparation of ESAs, Environmental and Social Management Plans (ESMPs), Resettlement Action Plans (RAPs), as needed. The ESMF also includes provisions on pollution management, habitat protection, labor and working conditions, community health and safety, and chance find procedures. A Stakeholder Engagement Plan (SEP) has been prepared for the Project with the specific provisions for different project components.

The Project will also set up a Grievance Redress Mechanism (GRM) for people to report concerns if they feel unfairly treated or affected by the Project. The ES instruments (ESMF, RPF, and Labor Management Procedures) have been disclosed by the Client and World Bank. Links to the respective websites have also been published on the AIIB website.

PROJECT TEAM LEADER

Asian Infrastructure Investment Bank

James Wylie

Investment Officer, Digital, Industry,
Financial Institutions & Capital Markets

james.wylie@aiib.org

 

World Bank
Isabella Maria Linnea Hayward

Digital Development Specialist

ihayward@worldbank.org

BORROWER

Gerald Mugabe

External Finance Specialist
Ministry of Finance and Economic Planning

gerald.mugabe@minecofin.gov.rw

IMPLEMENTING ENTITY

Innocent Muhizi

CEO
Rwanda Information Society Authority

innocent.muhizi@risa.gov.rw

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