According to the Bank’s website, the project originally consisted of the physical improvement of a slum area of about 250,000 inhabitants in Douala (1.5 million inhabitants), the country's port and economic center.  It also included civil works intended to improve traffic conditions in Douala and Yaounde, the capital city (1 million inhabitants). However, at the appraisal stage, PDU2 evolved into a far more complex project in relation to its original design. The project was expanded to further address institutional issues that had been raised in a sector policy letter and action plan that was drafted at appraisal stage on the basis of lessons drawn from the implementation of PDU1.

The project's design was intended to support implementation of the government's Sector Policy and Action Plan which was drawn up with the Bank's assistance and had 12 principal objectives. Among these objectives the project was to focus on the following: (a) setting up workable mechanisms to promote investment; (b) improving mobilization of local resources; (c) providing secure land tenure as an incentive for private investment; and (d) increasing the role of the private sector in housing and land development. All these objectives were spelled out and agreed in a letter accompanying the loan agreement, along with over 30 actions designed to improve integration between urban operations and economic development.

The project was intended to: (a) consolidate the basis for sustainable and replicable urban development which had been initiated under the first urban project; (b) encourage economic and social development by improving infrastructure and access to urban services, particularly in the lower income areas; (c) improve the distribution of responsibility across central and municipal levels of government as well as public and private providers of urban services; and (d) strengthen management capabilities of all urban agencies and develop replicable upgrading programs financed by local resources, with emphasis on improved cost recovery. The project was also seen as a stepping stone in the definition of the government's urban strategy, which was expected to provide the basis for a broad sector approach in future Bank lending.

(a) a loan agreement between the government and the Bank spelling out the tasks to be carried out by the various agencies as agreed, with a loan of US$146.0 million from the Bank, and counterpart funding from the government of US$107. 5 million, amounting to a total project cost of US$253.5 million;
(b) a project agreemnent between the Bank and the Credit Foncier (CFC) for on-lending for a municipal credit fund; and
(c) a project agreement between the Bank and MAETUR for land development.

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