Kigali Logistics Platform Connectivity Development Project

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The Kigali Logistics Platform Connectivity Development Project (KLPConnect) will provide connectivity to the logistics platform at Massaka (Kigali) to expand the traffic capacity in a safe, convenient, and cost-effective manner and promote regional and international trade. The KLPConnect will rehabilitate 69.45 km to link Massaka to Bugesera Industrial Park located on NR 5 between Ramiro and Kibugabuga towns and open opportunities for industries to be established in the area. It will also enable the production of inputs and outputs, raw materials transportation to and from Kigali, and truck traffic generation along Ngoma-Nyanza Road (currently under pavement by LVTP, a Bank-financed project) and connected to the KLP-Buesera roads. Furthermore, the project will contribute to the development of Bugesera District which has suitable farmland for growing food crops and livestock rearing for fresh milk and beef export and tourism activities along the nine (9) lakes. Also, the project will connect the new Bugesera International Airport located 25 km south of Kigali in Bugesera District, contributing to easing passenger and cargo traffic movement and linkage with the commercial zone at Bugesera under development, and with the next coming railway from Kigali to Isaka in Tanzania, thereby enabling integration of multi-modal transportation systems. It stimulates new jobs and income-earning opportunities for the people in Masaka-Kicukiro, Rwamagana, and Bugesera districts through road construction, maintenance works, and downstream development activities generated along the corridor because of the improved access. The Project will thus support the creation of a local logistical corridor along the proposed roads by upgrading selected markets and selling points in selected villages. Complementary investments in such socio-economic infrastructure will benefit local communities including women, youth, and SMEs through new employment and livelihood improvement opportunities. The project activities are as follows:1. Component 1: Improving physical infrastructure, (US$105.44 million, comprising US$91.49 million IDA and US$13.95 million GoR funding). The component will finance the design, upgrading, and performance-based maintenance of the KLP/Bugesera connector roads and the environmental and social risk management activities. Sub-component 1.1: Upgrading of the KLP/Bugesera connector roads (US$91.44 million, comprising US$77.49 million IDA and US$13.95 million GoR funding). The upgrading of the KLP/Bugesera connector roads (69.45 km) will comprise (a) design, upgrading, and five-year output and performance-based maintenance of four road sections, namely, (i) Masaka-Kabukuba (16.88 km), (ii) Kabukuba-Nyamata (13.72 km), (iii) Gahembe-Kindama (19.21 km); and (iv) Kabukuba – Riziyeri (19.64 km), with decreasing financing from IDA for maintenance based on a scale up effort from the country providing matching counterpart financing; and (b) provision of the supervision and monitoring consultant services. For any planned upgrading or provision of utilities (e.g., water, electricity, fiber optic cable), the proposed project will provide appropriate space (land) within the right of way (RoW). The provisioned RoW will allow the supply of such utilities and expand the road in case of need without damaging the existing road or requesting compensation. The upgrading of the roads includes approaches for green and resilient construction, including erosion prevention works, water drainage through adequate channels, reduction of water speed, and protection of road embankments. Safer speed and vulnerable road users’ safety will be ensured through safety-conscious road design and results of road safety audits at various stages. Sub-component 1.2: Environmental and social risk management, and community-level infrastructure works (US$14.00 million from IDA funds). This sub-component will finance (a) the compensation fees of the project-affected persons (PAPs) along the road sections and the planned road side infrastructures; (b) community and stakeholders' engagement including grievance redress committees and electronic grievance redress mechanism (e-GRM); (c) roadside investments and capacity building for livelihood restoration of communities living along the roads; (d) comprehensive road safety measures (speed management and vulnerable road users safety, campaigns and trainings for school children and road users supported by enforcement, surveys, personal protection equipment) together with a road safety capacity review including transport safety policy and strategy, road safety audits, KPIP assessments, and a comprehensive road safety agenda to reduce fatalities and injuries, as initiated under the LVTP and FRDP road projects; and (e) environmental protection activities, including (i) roadside plantations and management of 7,000 trees adaptable to the area along the 69.45 km road, and (ii) buffer zone establishment and management for Lake Kidogo and marsh lands (Rugende, Akagera).Component 2: Trade facilitation and logistics improvement (US$26.51 million, financed by IDA). Activities under this component will be carried out by the Ministry of Trade and Industry (MINICOM). Sub-component 2.1: Socio-economic development opportunities along the corridor (paved road sections) (US$17.31 million from IDA funds). The sub-component will finance activities to help residents of the local communities of the three districts along the road - Bugesera, Kicukirro, and Rwamagana - and Micro Firms and SMEs operating in the project area to economically benefit from the new paved corridor. Such activities will comprise: (a) a community-driven demand analysis and prioritization, selection, design, construction/upgrading, and supervision of works of the socio-economic infrastructure, including an analysis of gender differences in mobility to identify the location of markets that can address women’s priorities in terms of safety and time use (US$1.50 million), (b) development of basic infrastructure and facilities of at least one MSME/industrial park that will be selected (US$9.81 million) among those in the vicinity of the project area based on potential impacts, (c) upgrading/constructing of two roadside markets, selected based on technical studies and local consultations (US$4 million), (d) upgrading/constructing of four selling points in the selected villages/sectors along the roads (Musenyi, Mareba, Nyamata, Rilima, etc.) to be confirmed after technical studies and local consultations (US$1 million), and (e) an SME-oriented warehouse and E-commerce hub (with precise design to be discussed with logistics providers and potential beneficiaries) (US$1 million). The proposed project expects to provide Private Capital Enabling (PCE) with the infrastructure to be built under Sub-Component 2.1. Once the SME/industrial park, roadside market selling points, and the warehouse and E-commerce hub are built or upgraded, it is expected that businesses will make initial investments estimated by MINICOM to be around US$40.0 million to take advantage of this new infrastructure. Sub-component 2.2: Quality improvement of Rwanda’s traded goods and services along the corridor (US$5.20 million from IDA funds). Upgraded national testing, calibration, and verification laboratories will ensure the safety of goods in warehouses/transit, and accurate measurement in road construction and maintenance by (a) providing mapping and validation, calibration of warehouses, cold rooms, deep freezers, and truck coolers calibration and verification warehouses weighing scales and weighbridges, and axle load control weighbridges, calibration of force, coordinates, temperature and dimensional equipment of construction site quality control laboratories (US$4.2 million), and (b) support SMEs meet international quality standards by supporting RSB’s outreach services, mobile laboratories, and testing kits at border posts, airports, an