URBANIZATION II

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The Second Urban Development Project is designed to increase the participation of low-income people in the economic growth centered in the two main centers of Francistown and Selebi Phikwe situated in northeast Botswana. The project will include minimally serviced upgraded and settlement plots for about 6,500 households, low-cost sewered plots for about 300 households, house improvement loans, primary infrastructure, community facilities, commercial and industrial facilities, and studies on health/nutrition and small-scale enterprises. Concurrent with the proposed project, the Botswana Development Corporation will provide funds from an existing Bank loan (Loan 1019-BT) to help stimulate the development of small-scale enterprises. The project will provide for the expansion of the two towns, and help direct public investment to the greater benefit of low-income people. About 38,000 people will benefit from the residential component of the project, and about 1,250 jobs will be created or upgraded. The main risk facing the project is the economic uncertainty surrounding the two towns.