Afghanistan Reconstruction Trust Fund

Transcription

1 Afghanistan Reconstruction Trust Fund Kabul Urban Reconstruction Project MC Meeting: April 14, 2008 Applicant: Ministry of Urban Development (MoUD) Brief Description: This proposal supplements the ongoing Kabul Urban Reconstruction Project (KURP) financed by IDA. It primarily addresses urban upgrading works within the gozars located in the Old City of Kabul. The urban upgrading works focus on improving basic tertiary and some primary infrastructure and services including water supply, sanitation, access, drainage, solid waste management, and street lighting. The majority of this work will be implemented by qualified local contractors. The proposal also provides financing for support to the Ministry of Urban Development (MOUD) and Kabul Municipality (KM) in addressing The Old city of Kabul. Project Development The project, like the Kabul Urban Reconstruction Project, aims to Objective: provide improved delivery of basic urban services in vulnerable communities in Kabul through the upgrading of urban infrastructure and through enhancing the managerial capacity of Ministry of Urban Development (MOUD) and Kabul Municipality (KM). Performance Indicators: The performance indicators, in line with the indicators currently used to monitor outputs and outcomes in the KURP are as follows: Number of hectares of urban historical land subject to infrastructure improvements. (Target 40 ha) Number of residents (of the approximately 8,800 beneficiaries) in the target areas who have, as direct result of the project, improved access to public services such as roads and footpaths, water supply, sanitation, drainage Indicators to measure physical progress o Km of roads and footpaths rehabilitated o Km of water supply network built and/or rehabilitated o Number of onsite sanitation facilities provided o Km of drainage canal built or/and rehabilitated 1 Number of contracts successfully completed in the target gozars Sector: Urban Reconstruction Location: Kabul City with a focus on the Old City and the neighborhoods of Andrabi, Deh Afghanan, and Darwazae Lahori Total Project Cost: US$ 5,600,000 Amount Requested for US$ 5,600,000 2 ARTF MC Approval Implementing Agency The project will use the KURP implementation arrangements and will 1 The targets will be fixed once the social mobilization process is undertaken in the communities and the priorities are agreed with community participation. 2 KURP is financed by IDA credit with approximately US$ 25 million, depending on SDR exchange rate. The ARTF contribution is a supplement for the project to engage in areas of the historical city. 1

2 be implemented by the Ministry of Urban Development (MoUD) Implementing Period: April 2008 to February 2010, for a total of 23 months 3 Contact for further information Reviewed and Cleared by the Administrator Soraya Goga, Sr. Urban Specialist, The World Bank sgoga@worldbank.org, Anna Cestari, Engineer, The World Bank acestari@worldbank.org 3 The Government has officially requested a 1-year extension of the closing date of the KURP credit agreement, to March The extension was already considered at MTR (November 2007), and is now under process. 2

3 1. Proposal to Finance Upgrading of Historic Neighborhoods under the Kabul Reconstruction Project 1.1 This proposal seeks the approval of the ARTF Management Committee (MC) to finance US $5,600,000 for continued upgrading of four historic neighborhoods (3 of which were identified under the existing Kabul Urban Reconstruction Project), and to provide required engineering and cultural heritage policy support to the MOUD in their efforts to upgrade these neighborhoods. 1.2 The Kabul Urban Reconstruction Project is an ongoing project financed by the World Bank and implemented by the Ministry of Urban Development. The original intention of the project was to upgrade 45 neighborhoods. However, this was not possible due to budget constraints. Consequently, the project will now upgrade 19 neighborhoods. After initial delays, the upgrading is steadily progressing. 14 civil works contracts for 9 gozars have been awarded. Works have started in 6 neighborhoods. The procurement process for civil works is ongoing for the remaining 7 neighborhoods. 1.3 The initial delays resulted from the unavailability of MoUD staff to be seconded to the Project Management Unit and lack of government financing for a technical support consultant, (eventually provided by the ARTF in 2006). Implementation delays have occurred due to low capacity in the procurement of civil works. However, this has significantly improved with the assistance of the TSU s procurement specialist. Although civil works is progressing, disbursement remains low due to payment delays to contractors resulting from the new requirement (June 26, 2007 circular) which stipulates all contracts above 200,000 USD must have the approval of the national Special Procurement Committee. Several KURP contract have to be retroactively approved before the MoF releases payments to contractors. 1.4 The KURP identified the 19 neighborhoods of Kabul for upgrading based on criteria of poverty and ability to be connected to network infrastructure. The brevity of the preparation period (as the project was prepared under emergency circumstances) has meant that it has only now become apparent to the project team that three gozars identified for infrastructure upgrading are in the Historic Old City of Kabul, namely, Andrabi, Deh Afghanan and Darwazae Lahori. The additional neighborhood, Murad Khana, has also been identified as a priority area for intervention by the Ministry of Urban Development and has been included in the application. The Turquoise Mountain Foundation has been working in this area. The KURP is facing a shortfall of financing for historic gozars, due to inflation and special supervision requirements of historic neighborhoods. In the absence of ARTF funding, the three historic neighborhoods will have to be dropped from the project. 1.4 Through the existing upgrading experiences of the Aga Khan Trust for Culture (AKTC) and the Turquoise Mountain Foundation (TMF), it has become clear that these the historic neighborhoods would require preparation and implementation of civil works through methodologies and construction standards different from those applied in the non-historic areas. The changes in methodology have increased the cost estimates and time period required for upgrading these historic gozars. Specialist skills, in the form of a cultural heritage expert and increased engineering supervision, are also required for the successful implementation of the upgrading program. 2. Strategic Context and Rationale a. Key development issues 3

4 2.1 Kabul and Its Development: Kabul has experienced massive population growth since the late 1990s. Between 1999 and 2002, the city s population grew at 15% annually and was estimated at approximately 3 million in Growth will remain at about 5% (about 3% natural growth plus 2% migration) for the next few years. This represents a yearly increase of about 150,000 people or about 20,000 households that will require access to land and services. The key spatial and visual impact of this growth has been the informal development of land and housing. 2.2 Growth of Informal Settlements: Nearly 80% (or 2.4 million) of Kabul residents live on informal/unplanned settlements. These informal settlements take up approximately 69% of the land with a fixed capital investment value of US$ 2.5 billion. Quality of housing in these informal settlements is sound, built from traditional mud brick, which provides a measure of protection against harsh Kabul winters. The settlements have also prevented homelessness - in 2004 only 0.18% of the Kabul population lived in relief tents. 2.3 Infrastructure deficiencies: However Kabul residents in the informal and formal areas face major infrastructure deficiencies. Electricity: Access to reliable electricity is a constraint, with over a quarter of residents (26.42%) reporting no electricity access at any time of the year. While public grid access is about 58.73%, a number of households still rely on standalone generators (personal generators, 6.37%, or community generators 5.54%). Roads: The quality of roads in Kabul varies from footpaths to paved roads. Only 15% of formal households and 10.7% of informal households have access to their home via a paved road. This is in contrast to 59.14% (formal) and 62.30% (informal) access via unpaved road and 25.05% (formal) and 26.98% (informal) access via footpath. Sanitation: Although access to toilet facilities is high (most of households have a traditional covered latrine (63.86%), an improved latrine (18.34%), or a flush latrine (13.80%) and most households (85.43%) have toilet in compound) collection of waste is poor so waste is often dumped in drains or in the streets. Water: Households in Kabul access water through a hand pump in the compound (27.49%), a shallow open well in the compound (22.99%), have piped municipal water (17.89%), use a public hand pump (14.01%), or use a gravity pipe scheme (8.68%). However, water quality is poor. 2.4 Kabul's historic areas: Even before much of the historic fabric of the old city of Kabul was laid waste during factional fighting of 1992/93, the area had long been in decline as traditional homes were sub-divided and infrastructure fell into disrepair. Rising rents in the city has since pushed displaced families back to the badly damaged historic areas where some reconstruction is taking place. In the absence of a plan for redevelopment and financing for infrastructure, the fate of these areas hangs in the balance, pushed also by pressure from new development. If the new development proceeds to the detriment of the historic buildings in the old city, the loss to the cultural heritage of the city of Kabul and to Afghanistan would be irreparable. 4 There is not yet agreement on the number of Kabul residents. The numbers differ between sources. The UN and the Central Statistics Office (CSO) set the number at approximately 3 million in 2006; some aid workers in Kabul estimate it is higher, approximately 4 to 5 million. The upcoming census will finally provide a more exact figure. 4

5 b. Preceding Developments of Program and Relationship to other programs 2.5 The Kabul Urban Reconstruction Project targeted 19 neighborhoods for upgrading through a community-based consultation and upgrading approach. Thus far, community consultation, engineering designs and the start of civil works have commenced in 10 neighborhoods, while engineering designs and community consultation have started in an additional 6 neighborhoods. Initial community survey work has commenced in the 3 KURP historic neighborhoods. Planning and engineering for Murad Khanna has already commenced through technical assistance from the Turquoise Mountain Foundation. c. Rationale for ARTF involvement 2.6 Funds requested from ARTF will serve as co-financing to KURP to address the shortfall that the project faces in upgrading the three historic neighborhoods within the 19 KURP gozars, upgrading of the additional priority area of Murad Khana, and in managing the KURP (ARTF and IDA). The reasons for the shortfall in financing include: additional costs associated with civil work in historic areas (due to different engineering standards and design requirements); additional supervision costs (due to more intense supervision requirements); additional technical assistance required on cultural heritage. 2.7 Without ARTF funding, the three KURP historic neighborhoods would be dropped from the project and no funding would be available for the civil works upgrading of Murad Khana. This would result in social tensions as community residents are already aware that these neighborhoods have been identified for upgrading under KURP, and under the Turquiose Mountain Foundation Program (for Murad Khanna). The dropping of these neighborhoods may also be perceived as a lack of interest by the Government in cultural heritage and would further increase the pressure on the Old City by new development. 3. Project Description a. Project Development Objective and Key indicators 3.1 The project, like the Kabul Urban Reconstruction Project, aims to provide improved delivery of basic urban services in vulnerable communities in Kabul through the upgrading of urban infrastructure and enhancing the managerial capacity of MOUD and Kabul Municipality. 3.2 The performance indicators, in line with the indicators currently used to monitor outputs and outcomes in the KURP are as follows: Number of hectares of urban historical land subject to infrastructure improvements. (Target 40 ha) Number of residents (of the approximately 8,800 beneficiaries) in the target areas who have, as direct result of the project, improved access to public services such as roads and footpaths, water supply, sanitation, drainage Indicators to measure physical progress o Km of roads and footpaths rehabilitated o Km of water supply network built and/or rehabilitated o Number of onsite sanitation facilities provided o Km of drainage canal built or/and rehabilitated 5 Number of contracts successfully completed in the target gozars b. Project Components 5 The targets will be fixed once the social mobilisation process is undertaken in the communities and the priorities are agreed with community participation. 5

6 3.3 To achieve the above objectives, the ARTF is expected to finance the following components: Component One: Area Upgrading in Darwaze Lahori, Deh Afghanan, Andrabi and Murad Khanna in Kabul: Area upgrading will consist mostly of improving basic tertiary infrastructure and services such as water supply, sanitation, access, drainage, solid waste management, and street lighting that respond to community needs and demands. Component Two: Engineering and Project Management Support: This component will include the technical assistance and consulting services required to carry out detailed design, and to implement and manage the project. Component Three: Support on Cultural Heritage: The component will provide the MOUD and the KM with technical assistance to ensure continued engagement in the cultural heritage agenda in Kabul and in Afghanistan. It will also support an initial Social and Environmental Impact Assessment, as per the requirements of the World Bank operational policy on Cultural Heritage (OP 4.11), which will from the basis for the urban upgrading plan and of the environmental management plan for Category B projects (OP 4.01). c. Project Costs by Component (in USD) Component 1: Area Upgrading Component 2: Engineering and Management Component 3: Support on Cultural Heritage Implementation a. Institutional and implementation arrangements 4.1 Management of the project will follow the same arrangements as the Kabul Urban Reconstruction Project. 4.2 Overall management. Overall management of the total project will be the responsibility of Ministry of Urban Development (MOUD). The Ministry has also set up a Program Management Unit (PMU) to manage all components of the project. A Technical Support Unit (TSU) to the PMU, consisting of a Consultant Firm, has been hired and will continue to provide technical and managerial support. 4.3 Area Upgrading in Kabul: The Area Upgrading component of the project will be managed by the MOUD through the PMU with the assistance of the TSU. The Kabul Municipality will support the implementation of the component through a Project Support Team (PST) consisting of Kabul Municipality staff who will, in their line function duties, contribute to the project Community Based Organizations (CBO), whose members are selected from and therefore representatives of the gozar community will prioritize needed services and decide on a service standard package with the assistance of Planning, Design, and Contracts (PD&C) Consultants. The PD&Cs are private consultancies that carry out, under the close supervision of the PMU the site surveys, design and construction supervision of the sub-projects. They work closely with the communities to assess their priority needs and reflect them is the proposals and design. 4.4 Engineering and Management Support. This component includes the technical assistance and consulting services required to carry out detailed design, implement and manage the project 6

7 including additional resources for the PMU and their TSU, and additional resources for P, D & C Consultants for Andrabi, Deh Afghanan and Darwazi Lahori. The Planning Design and Contract Supervision for Murad Khanna will be managed by the Turquoise Mountain Foundation, at no cost to the ARTF 6. The component will be managed by the PMU, aided by the TSU. The PMU will be responsible for oversight of the whole project, although the detailed design and management of the co-financed components will also involve the co-financiers. It also includes technical assistance for financial audits and monitoring and evaluation Support for Cultural Heritage: This component will be managed by the PMU, assisted by the TSU. It will provide the technical assistance required to develop detailed design and implement the civil works in the historical gozars. As appropriate, it will also provide assistance to the Department for the Safeguarding of Afghanistan s Urban Heritage (DSAUH) of the MoUD to frame policies to vision and regulate upgrading in urban areas of historical and cultural interest. Under this component the initial SIA/EIA activity will be carried out by the TSU s consultants who would continue to support project implementation. b. Procurement arrangements 4.6 Procurement for the proposed project will be carried out in accordance with the World Bank s Guidelines: Procurement under IBRD Loans and IDA Credits May 2004, Guidelines: Selection and Employment of Consultants by World Bank Borrowers May 2004 and the provisions stipulated in the Legal Agreement. For contracts to be financed by the Grant, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame are agreed between the Recipient and the Bank team and reflected in the Procurement Plan. The Procurement Plan is updated at least every six months or based on actual project implementation needs and improvements in institutional capacity c. Financial management, disbursement and audit arrangements 4.7 A PFM performance rating system has been recently developed for Afghanistan by the Public Expenditure and Financial Accountability (PEFA) multi-agency partnership program, which includes the World Bank, IMF, EC, and other agencies. Afghanistan s ratings against the FM performance indicators portray a public sector where financial resources are, by and large, being used for their intended purposes as authorized by a budget that is processed with transparency and has contributed to aggregate fiscal discipline. 4.8 Financial management and audit functions for proposed project will be undertaken through the agents contracted under the Public Administration Capacity Building project. This is the primary instrument for continuing to strengthen the fiduciary measures put in place for ensuring transparency and accountability of funds provided by the Bank and other donors. Under these contracts, two advisers Financial Management and Audit are responsible for working with the government and line ministries to carry out these core functions. The Financial Management Adviser (FMA) is responsible for helping the MOF maintain the accounts for all public expenditures, including IDA-financed projects and for building capacity within the government offices for these functions. 4.9 At the project level, the Ministry of Urban Development will maintain the financial management arrangements currently being utilized for the IDA financed credit, i.e. the Finance 6 This is the subject of an MOU between the TMF and the MOUD. 7

8 and Administration Group of the Project Management Unit will work with the MOUD Finance Department staff to ensure that all FM requirements are met as at when due The Finance and Administrative Group will assign a Financial Management Specialist with responsibility for financial management activities of the project, which will include processing of consultants and contractors invoices for payments i.e. preparation of M-16 forms (payment orders), maintaining relevant accounting records, preparation of required quarterly and annual reports, liaising with SDU to ensure that the Designated Account is replenished as at when due and be responsible for responding to project audits Quarterly Financial Monitoring Reports will be prepared by the project FM unit. Consolidated project reports will be prepared, reviewed, and approved by the MOF, supported by the FMA Disbursement Management. Disbursement will be in accordance with the Bank s Disbursement Guidelines. Advances, reimbursements, direct payments and Special Commitments may be used. A Designated Account (DA), will be opened at Da Afghanistan Bank (DAB, Central Bank). Cumulative advances to the DA will not exceed US$ 400,000 and monthly expenditure reporting will be required. Transfers to other accounts (secondary advances out of the DA) are unlikely to be needed but may be allowed with Bank approval if the need arises. Summary reports in the form of SOEs (Statements of Expenditures) will be used for all contracts costing less than US$ 20,000. The DA will be maintained by the MOF. There are no disbursement conditions and no provision for retroactive financing. A single consolidated disbursement category for all project-related expenditures will be used. A grace period of four months following the closing date will be allowed for payment of expenditures incurred prior to the closing date. 5. Fund Flows 5.1 Fund management for the Project will follow existing procedures. As with all public expenditure, all payments under the project will be routed through MOF. The FM Adviser will assist the MOF in executing and recording project payments. In keeping with current practices for other projects in Afghanistan, the DA will be operated by the Special Disbursement Unit (SDU) in the Treasury Department MOF. Requests for payments from DA funds will be made to the SDU by the project. In addition to payments from DA funds, the project can also request the SDU to make direct payments to consultants or consulting firms, and special commitments for contracts covered by letters of credit. Such requests will follow World Bank procedures. All withdrawal applications to IDA, including replenishment, reimbursement, and direct payment applications, will be prepared and submitted by MOF. 6. Accounting and Reporting 6.1 The project will establish a project financial management system in accordance with standard Afghan government policies and procedures. This will include use of the Chart of Accounts developed by the Treasury to record project expenditure. Project accounts will be consolidated centrally in MOF, through the SDU and supported by the FMA. Consolidated Project Financial Statements will be prepared for all sources and uses of project expenditures. 8

9 7. Audit of Project Funds 7.1 The Auditor General, supported by the Audit Agent, is responsible for auditing the accounts of all ARTF-financed projects. Annual audited project financial statements will be submitted within six months of the close of GOA s fiscal year. d. Monitoring and reporting 7.2 Quarterly Financial Monitoring Reports and Quarterly Reports on project progress will be prepared by the MOUD with the assistance of the PMU/TSU. e. Sustainability and Risks Type of risk Brief description Measures to mitigate risk Technical Issues Drainage Ineffective Household Drainage Connections due to houses within the Old City having been built at varying levels, many below existing street surface level Necessary trunk drainage improvements located in densely built up residential areas Some areas unable to drain because of undulating topography Sanitation and MSW Open latrines discharging directly to the road Lack of space for pits, collection points, and pipes Excavation will be required to facilitate drainage and reduce road level. In areas with land form constraints, significant excavation and some leveling may be necessary Extensive community consultations will be required prior to any works and especially during the project implementation phase Increased number of covered drains in narrow streets Roads Social Issues Physical & Cultural Resources OP 4.11 triggered Physical & Cultural Resources Conflict Management Narrow roads which impeded standard road machinery from accessing certain areas Damage during upgrading works to historically significant, old, and damaged buildings Damage during upgrading works to historically significant, old, and damaged buildings Potential misunderstandings and conflicts between different stakeholders Manual Construction Techniques will be required in some areas SIA/EIA carried out as basis for area upgrading plan. Identification and documentation of physical cultural resources Modifications to standard designs to improve cultural appropriateness where required will be considered Identification and documentation of physical cultural resources Modifications to standard designs to improve cultural appropriateness where required will be considered PD&C social teams will receive additional training so as to increase conflict management and dispute resolution skills Traditional shuras and KURP established GCS/NCSs may have limited influence on 9

10 Representation Unbalanced and/or biased representation between varying ethnic and socio-economic groups in consultations Representation Unbalanced and/or biased representation between varying ethnic and socio-economic groups in consultations Environmental Issues Accumulation of Waste water Implementation Approvals Stagnant water could provide a breeding ground for for vector of diseases All development work within the Old City requires approvals of the Old City Commission 7, the MoUD, and the Kabul Municipality Cost and Time Control Costs and time may go significantly beyond allotted resources community members SIA providing social map of the area and identifying conflict potentials, e.g. between groups and over land issues Greater level of community consultation and technical assistance from experts in the field Establishment of GCS/NCS with particular attention paid to cluster representatives Keep communities informed with establishment of system to pass on written meeting records, decisions taken, issues and their resolutions Greater level of community consultation and technical assistance from experts in the field Establishment of GCS/NCS with particular attention paid to cluster representatives Keep communities informed with establishment of system to pass on written meeting records, decisions taken, issues and their resolutions Environmental Health Management and Hygiene Education materials have been developed by KURP and campaigns are implemented in each gozar; and decontamination of these areas would occur on a regular basis. Project implementation will form part of the agenda for the Old City Commission meetings Must balance resource requirements with appropriate technical solution to control upgrading costs and implementation timeframes 8. Social Issues 8.1 An initial Social Impact Assessment (SIA) as part of the EIA will provide a social map of the areas, identify particular areas of conflict between communities and over land as well as identify conflict of interest between poor and less poor/wealthy residents. The SIA will also map the social organization of the areas, social cohesion and serve as a guide for the establishment of the KURP community groups (if required) ensuring they are representative and inclusive across ethnic/religious and income groups and gender. Particular focus will be on the following: 7 The Old City Commission is appointed by the President and includes representative from MOUD, KM, Ministry of Culture, AKTC and of traditional Shuras of Kabul Its main function is to review proposed plans and intervention in the Old City and give approval for implementation. 10

11 Ethnic and Socio-Economic Structure: The Old City residents differ in their ethnic background and socio-economic status. Consequently, they may not share the same problems or have the same interests. Poorer population may participate and contribute to the project more readily than richer, as they are more affected by the lack of basic services. Migrant and Transient Population: The residents in the Old City are a mixture of old long established communities, returnees and new permanent or temporary settlers. In such social settings, the community cohesion is not as strong as in traditional Afghan communities. Traditional Shuras, if they exist, may have some influence on certain segments of the gozar community. KURP established community groups may have limited influence on the community members, which will create certain difficulties when decisions have to be made and enforced on the gozar level as required by the KURP Project goals. Conflict Management, Dispute Resolution and Land Acquisition: Complex physical and social environment of the Old City gozars will inevitably create fertile ground for misunderstandings and some conflicts. It is expected that such events will get to its peak during the implementation phase of the project. P.D.&C social teams need to be very well skilled in conflict management and dispute resolutions. Additional training in those skills is required. Physical Cultural Resources: The Old City is rich in physical culture and an initial SIA/EIA will be conducted since the WB OP 4.11 is triggered. The EIA will identify and document the physical cultural resources and recommend how they can be protected from damage during the construction work. KURP. Will involve some technical assistance from experts in this field during implementation, a significant amount of community consultation and support at the NCS and GCS levels. 9. Environmental Issues 9.1 Sanitation and Solid Waste Management: There are many varied and technically challenging sanitation and solid waste management issues in the Old City of Kabul. Key issues include: Open Latrines Discharging Directly to the Road. Typically open latrines discharges uncontrolled, directly to the streets within the Old City. Many at variable heights, making it difficult to adopt a standard design approach for sanitation improvements in the Old City. Lack of Space for Pits, Collection Points and Pipes. As mentioned previously, the development within the Old City is very dense and most of the access roads are very narrow. Accordingly, there is a lack of space for the implementation of standard KURP sanitation and solid waste management solutions. Narrow Streets. Because of the narrow streets it will be very difficult for the Municipal trucks to get access to the secondary solid waste collection points for removal and disposal. Hard Rock Geology in Deh Afghanan. Deh Afghanan is located on a hard rock hill side slope, creating and additional challenge for excavation in this gozar. 9.2 Project staff will examine neighborhoods on a case by case basis and prepare location specific environment plans (with participation of the relevant local community groups) to analyze and prepare strategies to mitigate impacts). 10. Conditions No civil works shall commence in the Historic Old City of Kabul until the social and environmental impact assessment above has been carried out, and the resulting Physical Cultural Resources Management Plan has been integrated into the engineering designs for the planned interventions. 11

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