Urban Development

As the world's largest multilateral financier of urban development, the World Bank Group works with national and local governments to build more livable, sustainable, and resilient cities and communities.

The World Bank invests an average of $5 billion annually in urban development, resilience, and land.

As of 2025, our active portfolio includes 198 projects amounting to $36.6 billion.

Our urban development strategy has four areas of focus:

1. Resilient, low-carbon infrastructure and services: Rapid urbanization requires massive investment in green infrastructure and services, with needs estimated at up to $2.7 trillion annually in low- and middle-income countries alone. We are addressing these challenges through projects focused on solid waste management, sustainable mobility, transit-oriented development, flood protection, nature-based solutions, public spaces, and neighborhood upgrading.
2. Safe, adequate housing and buildings: High levels of informality and a lack of affordable housing are key global issues, with approximately one quarter of the world’s urban population, or over 1 billion people, living in slums and informal settlements. We are tackling these issues through projects focused on housing finance, national affordable housing programs, resilient housing, housing reconstruction, public buildings retrofits, and land administration and governance.
3. Vibrant local economies: Cities are engines of economic growth, accounting for 80% of global GDP and 88% of private sector job creation. However, congestion, pollution, and sprawl prevent many cities from reaping the full benefits of agglomeration, limiting their potential for job creation. We are working to promote more vibrant local economies through projects financing urban revitalization, tourism, cultural heritage, economic zones, private sector development, and skills development.
4. Strong local governments: Local governments often have limited capacity to plan for and finance the investments needed for sustainable urban development. We are strengthening local governance through projects focused on institutional strengthening, own-source revenue enhancement, intergovernmental fiscal transfers, subnational borrowing, land-based finance, and national reforms to improve the enabling framework.

The World Bank Group is achieving results in urban development by supporting transformative projects that improve infrastructure, enhance service delivery, and create jobs:

• In Kenya, the Urban Support Program strengthened urban institutions in 77 municipalities, benefiting 3.6 million people through 370 infrastructure investments, including 230 km of roads, 225 km of walkways and cycle paths, 12 bus parks, and over 5,000 streetlights. The program also upgraded 25 markets and improved municipal financial and planning capacities.
• In Tanzania, the Dar es Salaam Metropolitan Development Project benefited 4.1 million people by constructing or rehabilitating 200 km of roads, 75 km of drains, and installing 5,000 solar streetlights. It also developed markets, parks, bus stands, and public toilets, improving safety and economic opportunities.
• In Niger, the Refugees and Host Communities Support Project improved access to services for over 1 million people, completing 99 infrastructure projects and constructing 66 km of roads, reducing travel time and revitalizing local markets.
• In Vietnam, the Dynamic City Integrated Development Project in Thai Nguyen improved infrastructure for 195,000 residents, building a bus station, four bridges, a 14 km road, schools, and drainage systems, while enhancing urban planning.
• Indonesia’s National Slum Upgrading Project improved living conditions for 8.7 million people, providing sanitation, waste collection, drainage, and all-season roads, and upgrading over 11,000 hectares of slum areas.
• India’s Tamil Nadu Sustainable Urban Development Project benefited 2.8 million people, constructing a wastewater treatment plant, 500 km of drainage, 1,000 km of water pipelines, 335 km of roads, and restoring water bodies.
• Pakistan’s Karachi Neighborhood Improvement Project upgraded public spaces, roads, sewer lines, and bus stops for 1.5 million people, and streamlined municipal services, reducing business registration and permit times.
• In North Macedonia, the Second Municipal Services Improvement Project benefited 425,000 residents by rehabilitating roads, procuring waste vehicles, renovating public buildings, and generating jobs.
• In Mexico, the Improving Access to Affordable Housing Project supported over 28,000 low-income beneficiaries in acquiring energy-efficient housing, with 70% of support going to the lowest-income households.

Around the world, the World Bank Group’s urban development projects are delivering tangible improvements in infrastructure, services, and economic opportunities, fostering more resilient, inclusive, and sustainable cities.

Supporting Resilient, Low-Carbon Infrastructure and Services

Rapid urbanization requires massive investment in green infrastructure and services, with needs estimated at up to $2.7 trillion annually in low- and middle-income countries alone. We are addressing these challenges through projects focused on solid waste management, sustainable mobility, transit-oriented development, flood protection, nature-based solutions, public spaces, neighborhood upgrading, and more.

Building Safe, Adequate Housing and Buildings

High levels of informality and a lack of affordable housing are key global issues, with approximately one quarter of the world’s urban population, or over 1 billion people, living in slums and informal settlements. We are tackling these issues through projects focused on housing finance, national affordable housing programs, resilient housing, housing reconstruction, public buildings retrofits, and land administration and governance.

Promoting Vibrant Local Economies

Cities are engines of economic growth, accounting for 80% of global GDP and 88% of private sector job creation. However, congestion, pollution, and sprawl hinder many cities from reaping the full benefits of agglomeration, limiting their potential for job creation. We are working to promote more vibrant local economies through projects financing urban revitalization, tourism, cultural heritage, economic zones, private sector development, and skills development.

Strengthening Local Governance

Local governments often have limited capacity to plan for and finance the investments needed for sustainable urban development. We are strengthening local governance through projects focused on institutional strengthening, own-source revenue enhancement, intergovernmental fiscal transfers, subnational borrowing, land-based finance, and national reforms to improve the enabling framework.

Urban Development Contacts

Laura Ivers

Senior External Affairs Officer
laivers@worldbankgroup.org

Liam Brown

External Affairs Officer
lbrown8@worldbank.org