DESCRIPTION
Under the National Strategy for Transformation 2 (NST2) 2024-2029 and the Transport Sector Strategic Plan (TSSP) of the Government of Rwanda, the country seeks to establish a robust multi-modal transport network to reduce transport cost and promote social economic growth. The road subsector has a focus on constructing, rehabilitating, upgrading and/or maintaining national and feeder roads to ease access to markets for agriculture products, while also improving public transportation services. The aviation subsector aims to boost passenger and cargo capacities of its airports and national carrier (RwandAir) to facilitate exports, while ensuring safety, security and local capacity (aviation skills) to sustain the growth of the sector.
The Results Based Project (RBP) proposed for AIIB financing will support the NST2/TSSP government program holistically by targeting key transport subsectors to facilitate seamless movement of goods, people, and services across borders and support connectivity between Rwanda and Asia.
The proposed RBP has three Results Areas:
- Improved quality of national and feeder road corridors;
- Enhanced safety, security, operational efficiency and climate resilience of key airports; and
- Enhanced institutional support and capacity building in the transport sector.
Results Area 1 focuses on the maintenance of paved and unpaved national roads and feeder roads to a good standard, while enhancing the climate resilience, road safety and operational efficiency of the road networks. These investments are crucial for lowering the transport costs of trade, improving the productivity of road users including farmers and vulnerable groups including women, and ensuring long-term sustainability of road assets through performance-based contracts.
Results Area 2 has a holistic approach to supporting the aviation subsector through targeted improvements to the safety of existing airports and aerodromes, modernization of security systems through digital upgrades, decarbonization of ground support equipment, and efficiency of aviation workforce development.
Results Area 3 strives to strengthen the integrated coordination amongst various stakeholders of the multi-modal transport program. This enhanced inter-departmental coordination can further streamline transportation planning, budgeting, information sharing, resource use, data collection, and oversight. Improved coordination through this RBP is also expected to support the achievement of results under the NST2/TSSP.
ENVIRONMENTAL AND SOCIAL INFORMATION
Applicable Policy and Categorization. AIIB’s Environmental and Social Policy (ESP) and the Environmental and Social Exclusion List (ESEL) will be applied to this RBP. As per the Bank’s policy, the environmental and social (ES) risks and impacts of the activities within the scope of this RBP are generally medium in scale, localized, not unprecedented and can be effectively mitigated through adopting best practice in construction management practice. The project is classified as Category B because the potential ES risks and impacts of RBP to be low and limited. The RBP will exclude (a) Category A or higher risk activities- following the provisions of ESP- that are likely to have significant adverse ES impacts; (b) Activities that cause significant physical and/or economic displacement of individuals and communities as a result of acquiring land; (c) Activities that are anticipated to cause adverse impacts to Indigenous Peoples communities and (d) All activities that are anticipated to cause significant conversion or degradation of critical or natural habitat or area with international significance, such as to Nyungwe National Parks (AZE) and Lake Kivu.
Environmental and Social Aspects. Potential environmental risks and impacts include temporary and localized air, noise and dust pollution; generation of construction waste; soil erosion, water pollution and biodiversity impact from national road, district and feeder road construction and rehabilitation. Maintenance of the national and feeder roads may cause temporary, localized noise and biodiversity impacts. Operation phase risks may involve occupational health and safety issues during road maintenance activities, traffic accidents due to poor road safety design/signs, and the issues from the operation of new baggage handling/security system (x-ray) at the existing airport. Potential social risks include temporary use of land or temporary disruption of access, which may occur in limited cases under road maintenance or upgrading activities. These may result in temporary loss of access to farmland, businesses, or community facilities, as well as short-term livelihood impacts on roadside vendors or informal users of road reserves. Although activities are largely confined to existing rights-of-way, potential social risks may arise from contractor presence and community interactions, including risks of gender-based violence (GBV), sexual exploitation and abuse (SEA), and harassment, particularly in proximity to schools and vulnerable communities. The RBP will rely on multiple contractors and subcontractors for road, airport, and related works. Labor-related risks may include inconsistent application of labor management procedures, such as worker contracts, working hours, occupational health and safety, and grievance mechanisms.
Environmental and Social Systems Assessment (ESSA). The Bank team will conduct an ESSA to evaluate the adequacy of the ES systems applicable to the RBP, including the Borrower’s capacity to assess and manage the ES risks and impacts at Ministry of Infrastructure, Rwanda Environment Management Agency, Road Transport Development Authority and Airport management authority. The ESSA also evaluates land acquisition practices and legacy issues to ensure the RBP does not inherit unresolved ES risks, with attention to PAPs impacted by past or ongoing activities. The ESSA will include recommended actions to strengthen specific aspects of the Borrower’s capacity and the system for mitigating ES risks during the preparation and implementation of the RBP, which will be included in the Program Action Plan. In addition, the ESSA will assess gender and social inclusion aspects of the RBP, including both direct project effects and indirect social or economic consequences, and reviews how country systems address these risks. The draft ESSA in English with a summary in local language will be disclosed in a timely manner before appraisal of the RBP.
Stakeholder Engagement and Information Disclosure. Stakeholder engagement processes are established within the national system, including requirements for consultation during project preparation and implementation. However, the depth, consistency, and inclusiveness of these processes may vary across agencies and project types. The Bank will review the scope, quality, and inclusiveness of consultations conducted during ESSA preparation. Where consultation gaps are identified, the Bank will recommend additional engagement to ensure relevant stakeholder views are adequately reflected and documented.
Project Grievance Redress Mechanism (GRM). The Borrower will establish a two-tier GRM, one at the national level (RTDA, ATL) and another at the site-specific contractor level. The capacity of the country-level grievance system to handle RBF-type grievances will be reviewed to ensure its effectiveness and confirm its adequacy for this RBP under ESSA. Information on the GRM will be disclosed in a timely and appropriate manner, and the mechanism will remain accessible and operational throughout the RBP lifecycle.
Monitoring and Reporting Arrangement. The implementation of the RBP will be overseen by a Steering Committee (SC). The SC will provide oversight and strategic guidance to the RBP. Ministry of Infrastructure (MININFRA), through its existing Transport Directorate, will coordinate the implementation of the RBP including facilitating data collection and support the monitoring and evaluation of the RBP. AIIB will conduct supervision and monitoring regularly through document review, discussions and site visits during the RBP implementation. Implementation of the ES actions in the Program Action Plan will be monitored and reported based on an agreed format during the RBP implementation.
