Taiz, with 540,000 inhabitants, is one the largest cities in Yemen, located at the base of Mt. Sabir. The city is subject to severe seasonal flash flooding that claims lives every year, injures scores of residents, and inflicts significant damage on city infrastructure. Particularly vulnerable are the poorest urban dwellers who live near the flood zone in precarious dwellings made of wood, aluminum, and other scavenged materials.

Flood-protection infrastructure transformed major parts of Taiz city and has had an immediate and substantial impact on the lives of city residents in the affected areas (an estimated 10,000 households and 1,000 businesses were direct beneficiaries). In project areas, there have been zero flood-related losses in lives or property.

Highlights:

Project infrastructure improvements directly led to:
- A reduction in loss of lives from a baseline of 6 deaths per year prior to project implementation to none in 2007,
- A reduction in significant damage to residential properties adjacent to the flood paths from a baseline average of 160 houses per year to none in 2007,
- A reduction in significant damage to business establishments adjacent to the flood paths from a baseline average of 660 incidents prior to project implementation to none in 2007, and
- A reduction in damage to public infrastructure from an annual baseline cost of US$95,000 to none in 2007.

Some highlights include:
- Construction of 20.7 kilometers of flood protection channels, or about 260 percent of the initial target,
- Construction of 28.5 kilometers of newly paved or upgraded roads, leading to an increase of the primary road network by some 30 percent: Street paving greatly improved access and economic opportunities. Buildings that could previously only be reached by foot or donkey can now be easily accessed. Transportation costs are reduced.
- Construction of 20 pedestrian bridges and 18.3 kilometers of footpaths,
- Construction of 33 kilometers of expanded wastewater network, and

The project also resettled 240 low-income families out of harm’s way to a model resettlement village, which greatly improved their livelihoods. Highlights include:
- For the first time, property titles were issued jointly in the name of both spouses.
- Al-Takaful, a local NGO, played a strong role in the resettlement. It conducted a comprehensive social study of the group, organized the move-in process, and continued to provide support long after the families moved in—managing literacy and skills-development programs, and introducing new amenities and facilities.
- Representatives of the NGO, the Akhdam community, and Local Council traveled to India to participate in a knowledge exchange with an NGO that has extensive experience in providing affordable housing for slum dwellers and implementing integrated community development programs. This experience bridged the gap between policymakers, NGOs, and community organizations to develop a common vision for urban upgrading in Taiz.

Additional financing of US$20 million became effective in June 2008. Specifically, the investment will benefit approximately 10,300 households and 450 businesses by protecting areas that are still vulnerable to flood damage from seasonal flash flooding. It will also upgrade infrastructure services in the same areas.