RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF URBAN III - PHASE II PROJECT GRANT IDA-H3300 APPROVED ON JULY 9, 2007

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of The World Bank RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF URBAN III - PHASE II PROJECT GRANT IDA-H3300 APPROVED ON JULY 9, 2007 AND ADDITIONAL FINANCING FOR THIRD URBAN DEVELOPMENT PROJECT (PHASE II) FPCR TRUST FUND GRANT No. TF APPROVED ON OCTOBER 4, 2008 Urban and Water Unit (AFTUW) Sustainable Development Department Country Department AFCW3 Africa Region TO THE REPUBLIC OF GUINEA DECEMBER 30, 2011 Report No: GN This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

2 ABBREVIATIONS AND ACRONYMS AF a.p. DO GNF IP km M&E n.a. LIPW M&E MU PDO PPF SME SPTD SWM Additional Financing additional person Development Objective Guinean Francs Implementation Progress Kilometer Monitoring and Evaluation not applicable Labor Intensive Public Works Program Monitoring and Evaluation Marginally Unsatisfactory Project Coordination Unit Project Development Objective Project Preparation Advance Small and Medium-sized Enterprise (in solid waste pre-collection) Services Public de Transfert de Déchets (Solid Waste Transfer Agency) Solid Waste Management Regional Vice President: Country Director: Sector Director: Sector Manager : Task Team Leader: 2 Obiageli K. Ezekwesili Ousmane Diagana Jamal Saghir Junaid Kamal Ahmad Zie Ibrahima Coulibaly

3 GUINEA URBAN III - PHASE II AND LABOR INTENSIVE PUBLIC WORKS P CONTENTS Page A. SUMMARY... 4 B. PROJECT STATUS... 4 C. PROPOSED CHANGES... 6 ANNEX 1: RESULTS FRAMEWORK AND MONITORING

4 URBAN III - PHASE II AND LABOR INTENSIVE PUBLIC WORKS RESTRUCTURING PAPER SUMMARY 1. The proposed restructuring is necessitated by recent changes in the project implementation environment, including the overall governance structure for solid waste management (SWM) in Conakry, and accumulated increases in prices of materials and other construction inputs with no additional funds to meet resulting financing gaps. The changes proposed are aimed at concentrating efforts on a priority program of coherent activities to be funded by the remaining project proceeds. Project restructuring for the Urban III phase 2 includes: (i) cancellation of SWM activities and reallocation of the corresponding proceeds within the project; (ii) extension of project closing date from December 31, 2011 to June 30, 2013 to provide enough time for full completion of the revised program of activities; and (iii) revision of the project results framework to better account for realistic results attributable to the restructured project. The restructuring was formally requested by the Government of Guinea on November 25, Since the project is in problem status, which is primarily due to the country context, Regional Vice President s approval for the closing date extension is required. 2. The restructuring will be used as an opportunity to formally integrate the Labor Intensive Public Works Program (LIPW) to the Urban III phase 2. 1 As a result, the outcomes and outputs expected from the LIPW will be included into the results framework of the parent project to create the conditions for reporting as one project, including through a single Implementation Completion Report once all activities will be completed. Also, the closing date of LIPW will be extended in order to align with the parent project. PROJECT STATUS 3. The US$15 million Urban III phase 2 operation aims at improving (i) the provision of infrastructure and services in Conakry and secondary cities, and (ii) the financial and organizational management of municipalities in support of the decentralization process. The financing was approved on August 14, 2007 with an original closing date of December 31, Urban III phase 2 was reactivated in April 2011 after over two years of freeze following the 2008 coup. To date, the project disbursement rate is about 38 percent against a commitment rate of 47 percent. The 1 While the Labor Intensive Public Works (LIPW), funded under the Global Food Crisis Response Program, was prepared as an AF to the Urban III phase 2 (the parent project), its reporting has been done so far through a separate ISR from the parent project. The proposed restructuring is formally integrating the AF to the parent project, henceforth both will be reported as one project both in terms of ISR and ICR. 4

5 US$2.5 million additional financing (AF), aimed at providing an emergency urban laborintensive works program to increase the purchasing power of the poorest, was reactivated on February 14, 2011 with retroactive extension of its closing date from September 30, 2009 to December 31, The Urban III phase 2 is currently rated marginally unsatisfactory (MU) on both Development Objective (DO) and Implementation Progress (IP). All municipal contracts foreseen between the State and the project cities were signed in mid The implementation of the Conakry municipal contract (component 1) has resulted in an additional 91,000 people provided with access to improved roads in Conakry before the freeze of project activities. However, the quality of SWM services 2 has deteriorated due essentially to the lack of regular financing of collection and transfer activities, combined with parallel and uncoordinated initiatives at the institutional level. This eventually resulted in privatizing all SWM activities. With regard to the municipal contracts for secondary cities (component 2), no substantial outcome has been achieved so far. As part of institutional strengthening (component 3), the project has reported substantial increases in municipal revenues, but this remains to be confirmed by analysis of data and their attribution to project s interventions. Implementation of the LIPW has been marginally satisfactory with about 70 km of neighborhood drains cleaned and roads rehabilitated. Also, 4,098 jobs were created (against a target of 5,300) and wages distribution to workers represented GNF 5.6 billion (against a target of GNF 7 billion). In addition, about 625,000 additional people, as project s indirect beneficiaries, have been provided with protection against flooding, improved environmental livelihoods or improved accessibility to urban services against an initial target of about 300,000 additional people. The project management is rated MU following the departure of the project coordinator. The recruitment of the new project coordinator is underway. Monitoring and evaluation (M&E) and safeguards compliance are also rated MU due to inadequate collection and treatment of data and the deterioration in the SWM with some negative environmental and social impacts. Procurement and financial management are both rated marginally satisfactory and continue to improve since the reactivation of project s activities. Annual audits have been timely undertaken. There are no overdue audits and the internal control and management system remain sound. 5. Implementation of the Urban III phase 2 has started to pick up pace since the relaunch of project s activities. Work on road rehabilitation in Conakry has resulted in the rehabilitation of 6 km of roads against a target of 16 km because of lack of funding. Ten new work sites have been opened in five of ten secondary cities, with works expected to be completed in early The institutional strengthening activities are starting with planned visits to all secondary cities by the. With regard to the AF, satisfactory progress has been made in the last few months in project implementation. 6. Following the September 2011 restructuring mission and workshop attended by all relevant parties (including all participating project municipalities), it was agreed to 2 Quality of SWM was relatively good at the end of the phase I of the Urban II project in 2005, but has not been sustained over time because of a difficult country context. 3 All ongoing works are related to construction and equipment of about 78 classrooms, including administrative offices as well as latrines in such schools, where needed, in the cities of Boké, Kankan, Kindia, N Zérékoré and Siguiri. 5

6 build on the existing SWM system, based on an autonomous public entity (SPTD) in charge of waste transfer, and to drop all activities related to disposal due to a planned privatization of land filling. Subsequently, the government opted for an approach built on full privatization of transfer and disposal, and a second restructuring mission was undertaken in November 2011 to revisit the initial restructuring proposal. The resulting restructuring approach presented in this Restructuring Paper was agreed with the Borrower and all participating municipalities. A time bound action plan has been agreed with the government to improve project s performance and ensure satisfactory completion at exit, including a performance-based management of the Project Coordination Unit () and the hiring of a consultant to support environmental and social aspects. The Bank is also strengthening its implementation support to the through quarterly assessment of project s implementation progress with targeted field visits and virtual meetings based on comprehensive progress reports. PROPOSED CHANGES Results/indicators 7. The proposed changes consist of: (i) revision of PDO indicators; (ii) revision of the target values for some indicators; (iii) incorporation of core indicators when relevant, and (iv) integration of the intermediate results of the AF to the parent project s results framework. This will allow reflecting both objectives of the PDO and their monitoring, the cancellation of SWM activities, the scaling back of activities for all three components to focus on those that can be implemented as a coherent program, and integrating reporting for the two operations, including Implementation Status and Results Reporting and Implementation Completion and Results Reporting. Also, the restructured results framework will place focus on outcomes and outputs that can realistically be achieved over the duration of the restructured project and are attributable to the project. 8. The has experienced some challenges for accurate and timely reporting of project results, which can be partially explained by the country context and lack of recent data on population, but also by a weak coordination of M&E activities within the. Substantial work has been carried out in the context of the restructuring exercise to revise baselines and set realistic targets and to present a clear M&E methodology to be used for the remainder of the project. The restructured results framework is presented in Annex 1, including detailed notes on data sources and methodology. The French translation of the restructured results framework and M&E methodology has been discussed in detail with the during restructuring missions and is fully agreed upon. It will be incorporated directly into the project implementation manual and should greatly improve the s ability to report accurately and regularly on project results. Project outcomes will be measured against the revised and new indicators and new target values. Components 6

7 9. The three components remain the same, but the scope of activities for all of them will be reduced as a result of concentration of efforts on a priority program of relevant activities likely to foster successful implementation of the project as restructured. 10. For Component 1 (Municipal Contract for Conakry), the Priority Investment Program will retain investments in: (i) neighborhood upgrading, but with a reduction in the number of km of roads rehabilitation to be financed under the project from 16 to 7.6 km, and (ii) administrative, socio-public, commercial, and environmental facilities, but with a reduction in the number of municipal sub-projects from 10 to 4. All activities related to SWM will be dropped, since the changes to the governance structure of SWM and the resulting impacts of this change have not been sufficiently clarified for the Bank to continue provide funds for any part of the SWM system. For the Municipal Adjustment Program for Conakry, activities related to support the establishment of a solid waste management system will be cancelled while the remaining categories of activities will be maintained but their scope reduced and refocused on realistic activities to be carried out by the municipalities. 11. The scope of Component 2 (Municipal Contracts for Secondary Cities) will similarly been reduced. The Priority Investment Programs for Secondary Cities will retain the activities in infrastructure and administrative, socio-public, commercial, and environmental facilities. However, only 20 sub-projects out of a planned 40 sub-projects will be retained, with each city benefiting from at least one investment sub-project. The Municipal Adjustment Programs for Secondary Cities will retain activities in all areas foreseen under the original project, but with their scope reduced and refocused on realistic activities to be carried out by the municipalities. 12. Component 3 (Institutional Strengthening) will focus on critical activities that have a strong likelihood to be effectively implemented during the lifetime of the restructured project and with potential impact on municipalities for budget management. Therefore, the following activities will be dropped: (i) street addressing activities in all communes but Dixinn, Kaloum and Matam; (ii) improvement of fiscal registers in all communes but Dixinn, Kaloum and Matam; (iii) support to the National Directorate of Taxes; (iv) all activities related to urban management; and (v) the study on intergovernmental transfers since it has been financed from other sources. The restructured project will continue to support local government budget documentation through training to municipal staff, provision of IT to the National Directorate of Decentralization and support to updating the financial ratio guidebook. Finally, the project s closing date extension will result in increased costs for the and the project will continue to finance communication and information dissemination activities, technical assistance to project implementation, technical and financial audits, and support to safeguard implementation. 13. The reduction of project s scope will not affect its capacity to contribute to improving urban infrastructure and services quality in the targeted cities. The same level of resources will remain to cities as initially granted in their municipal contract agreements. In addition, decentralization remains a major reform agenda for the authorities; hence the relevance of the proposed restructuring which will be resulting in targeted amendments to the existing municipal contracts. 7

8 14. The resulting component reallocations are presented below. Financing (IDA: US$15m - Government and cities counterparts: US$1m) Project Costs Components/Activities Current SDRm Current US$m Proposed SDRm Proposed US$m Component Component Component Refinancing of PPA Contingencies (unallocated) Total Reallocations Category of Expenditure Allocation of IDA funds (SDRm) % of Financing Current Revised Current Revised Current Revise 1) Works Not revised ) Goods Not revised ) Consultants Not revised services ) Operating Not revised Costs ) Refund of Not revised n.a. n.a. PPA ) Unallocated Not revised n.a. n.a. Total Safeguards 15. Under the restructuring, the category of the project will remain the same (Category B) and O.P and 4.12 will still be triggered. The current MU rating for safeguards is due to lack of adequate monitoring of safeguard issues from the and the ministry of environment as well as limited ability to manage the social and environmental impacts of the degraded SWM system. With the cancellation of SWM activities and the hiring of a consultant by the to support monitoring and reporting on the implementation of environmental and social aspects of the project, management of environmental and social aspects should improve to ensure full compliance with safeguards requirements. Institutional arrangements 16. As a result of the decision to concentrate the project on a priority program, the municipal contracts for all participating municipalities will be amended to reflect the reduced scope of investment activities and to provide improved information on the 8

9 criteria set for evaluating municipalities performance. The staffing of the will also be revised to drop the position included in support of SWM. The project implementation manual will be amended to incorporate all these changes. Financial management 17. The proposed cancellation of activities related to SWM will entail changes to the project funding. Specifically the following three existing accounts will be dropped from the project: (i) SPTD operating costs account funded by the City of Conakry; (ii) SPTD assets depreciation; and (iii) SMEs equipment guarantee, with both accounts funded by the National Budget. The financial management, currently rated MS, has improved since the project resumed activities. Annual audits have been timely performed and no audit report is overdue. The independent auditor issued an unqualified opinion on 2010 financial statements and the internal control system remains adequate. Closing date 18. The closing date for the Urban III phase 2 is proposed to be extended from December 31, 2011 to June 30, 2013 to allow for full implementation of the project as restructured. Accordingly, the closing date for the AF to the Urban III phase 2 is proposed to be extended from December 31, 2011 to June 30, 2013 to allow alignment with the parent project. 9

10 ANNEX 1: Results Framework and Monitoring GUINEA: URBAN III - PHASE II Project Development Objective (PDO) (not revised): (a) to improve the provision of infrastructure and services in Conakry and secondary cities; and (b) to improve the financial and organizational management of municipalities in support o f the decentralization process. PDO Level Results Indicators New #1. Direct Project Beneficiaries, Of which female New #2. People in urban areas provided with access to all-season roads within a 500 meter range under the project. 3 (dropped). Percentage of the population of Conakry having access to services (solid waste) through the project. 4 (dropped). Increase in municipal own revenues -Conakry Core Unit D/C/ Baseline N/ R 4 original project Progress Progress to date Cumulative target values to date (latest data) 5 Frequen cy Number % N 0 91, ,000 52% 95,000 50% 95,000 50% 96,000 49% 115,000 50% 249,000 51% Yearly Project progress reports, surveys. Number N 0 91, ,000 91,000 91,000 91, , ,000 Yearly Works supervision reports. Data source/ Responsibi methodology lity for data collection Comments See also comment (1) below. Beneficiaries from 1.6 kilometers of initial road program retained under restructured project, following the cancellation of SWM activities. % D 56% 27% 35% 33% 28% 25% 27% D D D D D Indicator dropped. However, the original baseline has been revised. See also note (2). % D 0% 274% 73% Not 227% 274% D D D D D D Indicator dropped. See (3) below). Data not from 4 Dropped/Continued/New/Revised compared to PAD results framework. 5 For new indicators introduced as part of the project restructuring, the progress to date column is used to reflect the baseline value.

11 -Secondary cities % D 0% 141% 52% 177% 197% 141% D D D D D D Conakry in New #3. Local governments having established effective management systems to operate commercial infrastructure. New #4. Local governments generating budget reports on time. Number N n.a. 0 n.a. n.a. n.a. n.a Yearly Existence of management contract with proof of negotiation process. Number N n.a. 0 n.a. n.a. n.a. n.a Yearly Existence of budget reports. New indicator to evaluate the financial and organizational management of municipalities. Indicator targets only applicable from See definition below (4). New indicator to measure performance of financial and organizational management of municipalities. Indicator targets only applicable from Intermediate result 1: No revision 1 (dropped). Solid waste collected by SMEs compared to total waste produced. 2 (dropped). Solid waste transferred to the la Minière landfill compared to total waste produced. New #1. Roads rehabilitated, non-rural. % D 56% 19% 31% 22% 17% 19% 25% D D D D D Indicator dropped, However, the baseline has been revised. See also (5), below. % D 56% 62% 31% 22% 44% 19% 62% D D D D D Indicator dropped. However, the baseline has been revised See additional comments Kilomete rs R Yearly Works supervision reports. under (6) below. Additional 1.6 kilometers of initial road program retained under restructured project, 11

12 3 (dropped). Increase in municipal own revenues. New #2. Percentage of municipal budgets allocated and spent on routine maintenance. New #3. Number of priority maintenance programs elaborated and implemented. % D 0% 274% 73% Not % R 3% 3% Not Not following the cancellation of SWM activities. Indicator revised in line with core indicators. See also note (7). 227% 274% D D D D D D Indicator dropped. See (3) below). Data for municipal own revenues not Not Not 3% 3% 3% Yearly Municipal budgets. Percentage of municipal revenues for the City of Conakry and the 5 communes. Number N n.a. 0 n.a. n.a. n.a. n.a Yearly Municipal budgets and survey. For the City of Conakry and the 5 communes. for See note (8) on methodology and revised baseline for calculating 3%. Data was not generated for previous years ( ) due to methodological problems. Methodology clarified and revised in consequence. New indicator - targets only applicable from See note (9) on methodology. Intermediate result 2: No revision 1. Number of infrastructures built/rehabilitated to benefit poor neighborhoods of targeted secondary cities. Number R Yearly Works supervision reports, acceptance reports. Indicator target revised and exclusion of maintenance activities from indicator. See also note (10) below. 12

13 New #2. People in urban areas provided with access to Improved Water Sources under the project. New #3. Improved community water points constructed or rehabilitated under the project. New #4. People in urban areas provided with access to public sanitation under the project. New #5. Market places created or improved. Number Number Number Number N n.a. 0 n.a. n.a. n.a. n.a. n.a. No target 9,600 Yearly Project progress reports, surveys. N n.a. 0 n.a. n.a. n.a. n.a. n.a. No target 13 Yearly Project progress reports, acceptance reports. N n.a. 0 n.a. n.a. n.a. n.a. n.a. No target 7,200 Yearly Project progress reports, surveys. N n.a. 0 n.a. n.a. n.a. n.a. n.a. No target 850 Yearly Project progress reports, surveys. New indicator to measure outcome of construction of communal water points in schools. Indicator not applicable until 2012 and target value only fixed for end-ofproject. New indicator to measure output of construction of communal water points in schools. Indicator not applicable until 2012 and target value only fixed for end-ofproject. New indicator to measure outcome of construction of communal latrines in schools. See note (11) below. Indicator not applicable until 2012 and target value only fixed for end-of-project. New indicator to measure output of market improvements. Indicator not applicable until 2012 and target value only fixed for end-ofproject. 13

14 New #6. Parking stands created or improved. 7 (dropped). Increase in municipal own revenues. New #7. Percentage of municipal budgets allocated and spent on routine maintenance. New #8. Number of priority maintenance programs elaborated and implemented. Number N n.a. 0 n.a. n.a. n.a. n.a. n.a. No target 350 Yearly Project progress reports, surveys. New indicator to measure output of transport infrastructure improvements. Indicator not applicable until 2012 and target value only fixed for end-ofproject. % D 0% 141% 52% 177% 197% 141% D D D D D D Indicator dropped. See (3) below). % R 3% 3% Not Not Not Not 3% 3% 3% Yearly Municipal budgets. Percentage of municipal revenues for secondary cities. Number N n.a. 0 n.a. n.a. n.a. n.a Yearly Municipal budgets and survey. For secondary cities. Data was not generated for previous years ( ) due to methodological problems. Methodology clarified and revised in consequence. See note (12) on methodology and revised baseline for calculating 3%. New indicator - targets only applicable from See note (13) on methodology. Intermediate result 3: No revision 1. Number of municipalities of Conakry with improved fiscal registers in place and in use. Number R Yearly M&E reports. Indicator target revised to be in line with activities maintained regarding street addressing. 14

15 2. Number of municipalities with street addressing (adressage) in place and operational for improving fiscal registers. 3 (dropped). Increase in municipal own revenues - TPU, CFU and Patente in Conakry - TPU and Patente in secondary cities. 4 (dropped). Increase in municipal own revenues - TPU, CFU and Patente in Conakry - TPU and Patente in secondary cities. Number R Yearly M&E reports. Indicator target revised to be in line with activities maintained regarding street addressing. See note (14) on target revision. % D 0% 79% 6% 19% 79% Not % D 0% 28% -40% -16% 28% Not % D 0% 109% 34% 74% 109% Not % D 0% 36% -20% 10% 36% Not D D D D D D D D D D D D D D D D D D D D D D D D The process for collecting data for most recent completed fiscal exercise (2010) is still ongoing. Indicator dropped. See (3) below). The process for collecting data for most recent completed fiscal exercise (2010) is still ongoing. Indicator dropped. See (3) below). Intermediate result 4: Creation of temporary jobs for the vulnerable population of Conakry (new intermediate result, due to merging of Additional Financing with parent project) Temporary jobs created for a period of 2-3 months. Wages distributed to workers Length of drains cleaned and neighborhood roads rehabilitated Number C 0 4,098 n.a. n.a. 3,700 3,700 5,300 5,300 5,300 Yearly Project progress reports Billion GNF Kilomete r C n.a. n.a Yearly Project progress reports C n.a. n.a Yearly Works supervision reports. / CVS To assess number of people provided with temporary jobs under the project. / CVS To assess number of beneficiaries receiving increased income. / CVS To assess the impact of the project on people s physical access and environmental conditions in targeted areas. 15

16 A detailed calculation of indicator values is in the project file. The comments below provide information as background to the restructured results framework. (1) Direct project beneficiaries includes all persons benefiting from project interventions, including those counted under access to roads, water, and sanitation in the results framework, plus beneficiaries benefiting from other investments in secondary cities and not separately accounted for in the results framework, such as health centers, schools, and market infrastructure. Direct project beneficiaries further includes the beneficiaries of the Labor Intensive Public Works Program as AF to the Urban III phase 2. (2) The original PAD indicator related to SWM measured percentage of the population having access. Original baseline does likely not reflect the actual situation at appraisal, due to use of outdated population data. The total number of households was set at 158,198, based on the 1996 census, and 113,903 households were served, giving 72 percent, as in the PAD. A more realistic 2005 baseline, taking into account 4% population growth, is 56 percent, based on 113,903 households served out of an estimated total of 195,705 households in Since then, access rates have fallen, due to lack of regular financing of solid waste collection, with a reversal of the negative trend in (3) The indicator is to be dropped. The project has reported substantial increase in municipal own revenues as well as issuance of tax rolls and collection of fiscal revenues, but this is not confirmed by analysis of data and also not attributed to project interventions (due to the project freeze). The remaining project period will not allow the project to attain measurable and attributable results regarding increase in municipal own revenues and fiscal revenues. (4) Efficient system to manage commercial infrastructure is defined as evaluated and chosen by the municipal council and for which the type is clearly identified: (a) specifying management «in house» but with nomination of a manager accountable to the council and with clearly defined and contractual minimum objectives; or (b) concession of management to a private entity (e.g. association of stall holders, professional operator), with regular payment of specified amounts, for which the intervals and procedures for revision are agreed and clearly spelled out in a contract. Such system shall in any case include a public hygiene component regarding solid waste management and operation of latrines. A management system is set in place based on the following principles: (i) Inventory of assets and numbering of market stalls and stands, and parking spaces in the case of transport infrastructure; (ii) Negotiation between the council and traders/transport operators on the use of proceeds; (iii) Estimate of the financial situation of each category of assets (tables, stalls, shops, parking spaces) and growth projection over three years; and (iv) Evaluation, negotiation and adoption of the system of management most beneficial to the commune. All of these principles are to be respected if the system is to be considered efficient in terms of the indicator, whether option (a) in house or (b) concession is chosen. (5) Issues regarding this indicator are similar to note (2). The original PAD baseline does likely not reflect the actual situation at appraisal, due to use of outdated population numbers. The total waste generated in 2005 was estimated at 321,200 cubic meters at appraisal, based on the on the 1996 census (population of 1.1 million) and an estimate of 0.4 cubic meters (0.8 liters) of waste generated per person per day. This gives a collection rate of 80 percent (256,960 cubic meters collected by SMEs in 2005). A more realistic 2005 baseline, taking into account 4% population growth and slightly denser population (8 persons per household, as estimated by the National Statistics Department), is 56 percent, based on the same 256,960 cubic meters reported as collected by SMEs out of an estimated production of 457,168 cubic meters in 2005 (estimated population of 1,565,643 times 0.8 liters per day). Since 2005, collection rates have fallen, due to lack of regular financing of solid waste collection, and the amount of solid waste collected by SMEs has decreased. The revised estimate (2010) is 19 percent of total waste generated collected by SMEs. This is based on 102,784 cubic meters collected out of an estimated production of 556,214 cubic meters in (6) In line with other SWM indicators, the original 2005 baseline and annual performance has been revised to take into account projected population growth and related increased waste generation. SPTD is currently only transferring about 20 percent of the waste produced, compared to a total transfer rate of 62 percent by all transporters. This is due to a number of emergency operations during 2011, during which other operators than SPTD have been paid to transfer accumulated waste. In preceding years (and especially in 2009), solid waste transfer has also been carried out by other operators than SPTD, in the absence of regular financing for SPTD. (7) Original indicator commingled construction, rehabilitation, and maintenance. The project originally targeted rehabilitation of 16 kilometers of roads. (8) For the restructured project, it is specified that 3 percent of budgets of the City of Conakry and the 5 communes corresponds to GNF 728,148,651 in 2010 (3 percent of GNF 24,271,621,725, total revenues for Conakry and the 5 communes in 2010). This is set as the minimum amount to be spent annually on routine maintenance by the City of Conakry and the 5 communes for the duration of the project. A definition and positive list of infrastructures for which maintenance is to be credited is to be promulgated during a workshop in Conakry, and further included in as an annex to the revised municipal contracts. (9) The indicator measures the number of programs effectively prepared and implemented by the City of Conakry and the 5 communes, based on an inventory of assets and analysis of maintenance needs. In order to be considered as implemented, at least 80 percent of activities contained in the PMP has to be implemented, corresponding to at least 80% of the budget allocated. A definition and positive list of infrastructures for which maintenance is to be credited is to be promulgated during a workshop in Conakry, and further included as an annex to the revised municipal contracts. 16

17 (10) Original cumulative target was 40 infrastructures in secondary cities, revised down to 20 infrastructures cumulative, due to cost increase. Maintenance activities will be accounted for separately, under the indicator on maintenance budget and maintenance programs implemented. (11) Not a core indicator, as the Improved Sanitation Facilities core indicator specifically excludes public or shared facilities. (12) For the restructured project, it is specified that 3 percent of budgets of the secondary cities corresponds to GNF 154,882,120 in 2009 (3 percent of GNF 5,162,737,335 total revenue for the 10 municipalities in 2009, last year of fully data). This is set as the minimum amount to be spent annually on routine maintenance by the secondary cities, for the duration of the project. A definition and positive list of infrastructures for which maintenance is to be credited is to be promulgated during a workshop in Conakry, and further included as an annex to the revised municipal contracts. (13) The indicator measures the number of programs effectively prepared and implemented by the ten (10) secondary cities, based on an inventory of assets and analysis of maintenance needs. In order to be considered as implemented, at least 80 percent of activities contained in the PMP has to be implemented, corresponding to at least 80% of the budget allocated. A definition and positive list of infrastructures for which maintenance is to be credited is to be promulgated during a workshop in Conakry, and further included as an annex to the revised municipal contracts. (14) Street addressing was considered to be updated and operational for three municipalities of Conakry in 2005, based on the latest update in This street addressing is no longer considered to be operational. The restructured project will restore these street addressing registers to operational status, as basis for operational fiscal registers. 17

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