Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of The World Bank FOR OFFICIAL USE ONLY EMERGENCY PROJECT PAPER ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 3.3 MILLION (US$5 MILLION EQUIVALENT) TO SAINT VINCENT AND THE GRENADINES FOR A HURRICANE TOMAS EMERGENCY RECOVERY PROJECT Sustainable Development Department Caribbean Country Management Unit Latin America and the Caribbean Region December 21, 2010 Report No: 58443-VC This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank s policy on Access to Information.
CURRENCY EQUIVALENTS (Exchange Rate Effective November 30, 2010) Currency Unit = Special Drawing Rights 1.51SDR = US$1 0.66 US$ = SDR1 FISCAL YEAR January 1 December 31 ABBREVIATIONS AND ACRONYMS CDB CCRIF DVRP ERDMP ERL FAA GFDRR GIS GoSVG IBRD ICB IDA IFR MNS MoA MoE MoFEP MoHE MoHILP MoTW NCB NEMO OECS ORAF PC PDO PPCR PSIPMU RPS SBD SOE SVG TOR UNDP Caribbean Development Bank Caribbean Catastrophe Risk Insurance Facility Disaster Vulnerability Reduction Project Emergency Recovery Disaster Management Project Emergency Recovery Loan Financial Administration and Audit Act Global Facility for Disaster Reduction and Recovery Geographic Information System Government of Saint Vincent and the Grenadines International Bank for Reconstruction and Development International Competitive Bidding International Development Association Interim Financial Report Ministry of National Security Ministry of Agriculture Ministry of Education Ministry of Finance and Economic Planning Ministry of Health and the Environment Ministry of Housing, Informal Human Settlements, Lands and Surveys, and Physical Planning Ministry of Transport and Works National Competitive Bidding National Emergency Management Organization Organization of Eastern Caribbean States Operational Risk Assessment Framework Project Coordinator Project Development Objective Pilot Program for Climate Resilience Public Sector Investment Program Management Unit Regional Partnership Strategy Standard Bidding Documents Statement of Expenditures Saint Vincent and the Grenadines Terms of Reference United Nations Development Program Regional Vice President: Country Director: Sector Director: Sector Manager: Task Team Leader: Pamela Cox Yvonne M. Tsikata Laura Tuck Guang Zhe Chen Niels B. Holm-Nielsen
SAINT VINCENT AND THE GRENADINES Hurricane Tomas Emergency Recovery Project CONTENTS A. B. C. D. E. F. G. Page Introduction... 6 Emergency Challenge... 6 Bank Response... 9 Appraisal of Project Activities... 11 Implementation Arrangements and Financing Plan... 14 Key Risks and Mitigation Measures... 16 Terms and Conditions for Project Financing... 16 Annex 1: Detailed Description of Project Components... 18 Annex 2: Results Framework and Monitoring... 20 Annex 3: Summary of Estimated Project Costs... 23 Annex 4: Operational Risk Assessment Framework (ORAF)... 24 Annex 5: Financial Management and Disbursement Arrangements... 26 Annex 6: Procurement Arrangements... 29 Annex 7: Implementation and Monitoring Arrangements... 34 Annex 8: Project Preparation and Appraisal Team Members... 36 Annex 9: Environmental and Social Safeguards Framework... 37 Annex 10: Economic and Financial Analysis... 38 Annex 11: Documents in Project Files... 39 Annex 12: Statement of Loans and Credits... 40 Annex 13: Country at a Glance... 41 Annex 14: Map... 43
SAINT VINCENT AND THE GRENADINES Hurricane Tomas Emergency Recovery Project PROJECT PAPER LATIN AMERICA AND THE CARIBBEAN Basic Information Country Director: Yvonne M. Tsikata Sector Director: Laura Tuck Sector Manager: Guang Zhe Chen Team Leader: Niels B. Holm-Nielsen Project ID: P124939 Expected Effectiveness Date: February 1, 2011 Lending Instrument: Emergency Recovery Loan (ERL) Sectors: Infrastructure Themes: Urban Development (50%); Flood Protection (40%); Central Government Administration (10%) Environmental category: B Expected Closing Date: December 31, 2013 Joint IFC: Joint Level: Project Financing Data [ ] Loan [ X] Credit [ ] Grant [ ] Guarantee [ ] Other: Proposed terms: 10 years grace period and final maturity of 35 years Financing Plan (US $m) Total Project Cost: Co-financing: Borrower: Total Bank Financing: IBRD IDA: New Recommitted Source Client Information Recipient: Government of Saint Vincent and the Grenadines Responsible Agency: Ministry of Finance and Economic Planning Contact Person: Ms. Laura Anthony-Browne Telephone No.: +1 784 457-1007 Fax No.: +1 784 456-2430 Email: office.finance@mail.gov.vc Estimated disbursements (Bank FY/US$m) FY 11 12 13 14 Annual 0.5 3 1 0.5 Cumulative 0.5 3.5 4.5 5 Total Amount US$ 5,000,000 0 0 US$ 5,000,000 Project Development Objective and Description Project Development Objective: The development objectives are to support the Recipient s efforts to: i) rehabilitate damaged and vulnerable infrastructure, caused by the passage of Hurricane Tomas; and, ii) strengthen the Recipient s ability to analyze location specific risks.
Project Description Component 1 Rehabilitation of Vulnerable and Damaged Infrastructure Carrying out the rehabilitation and reconstruction of damaged infrastructure, including, inter alia, school buildings and associated school infrastructure, community centers, strengthening a river defense site, stock-piling gabion baskets, and transport infrastructure, through the provision of works, technical advisory services and goods. Component 2 Institutional Strengthening and Hazard and Risk Analysis Improving the capacity of the Ministry of Housing, Informal Human Settlements, Lands and Surveys and Physical Planning (MoHILP), and the National Emergency Management Organization (NEMO), for evaluation of natural hazard and climate change risks, through the provision of training to the respective staff of MoHLP and NEMO, provision of technical advisory services and acquisition of goods. Component 3 Project Management and Implementation Support Strengthening and developing the institutional capacity of the Public Sector Investment Program Management Unit for Project management and execution, including procurement, financial management and supervision of Project activities, through the acquisition of goods, provision of technical advisory services, training, and operating costs. Safeguard and Exception to Policies Safeguard policies triggered: Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11) Indigenous Peoples (OP/BP 4.10) Involuntary Resettlement (OP/BP 4.12) Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) Projects in Disputed Areas (OP/BP 7.60) Does the project require any exceptions from Bank policies? Have these been approved by Bank management? Conditions and Legal Covenants Financing Agreement Reference Description of Condition/Covenant Schedule 2,Section I, B, 1 Operational manual prepared by borrower and submitted to World Bank for no objection. The manual can be changed on a no objection basis and should be updated periodically as needed [X]Yes [ ] No [X]Yes [ ] No [ ]Yes [X] No [ ]Yes [X] No [ ]Yes [X] No [ ]Yes [X] No [ ]Yes [X] No [ ]Yes [X] No [ ]Yes [X] No [ ]Yes [X] No [ ]Yes [ X] No [ ]Yes [ ] No Date Due Within 6 months of effectiveness
A. Introduction 1. This Project Paper seeks the approval of the Executive Directors to provide a Credit in the amount of SDR 3,300,000 (US$5 million equivalent) to Saint Vincent and the Grenadines (SVG) for the Hurricane Tomas Emergency Recovery Project. 2. The proposed Credit would help finance the costs associated with rehabilitating damaged infrastructure in the transportation, education, and public sectors, and strengthen disaster risk management capacity. The project has three components: Component 1 Rehabilitation of Vulnerable and Damaged Infrastructure 3. Carrying out the rehabilitation and reconstruction of damaged infrastructure, including, inter alia, school buildings and associated school infrastructure, community centers, strengthening a river defense site, stock-piling gabion baskets, and transport infrastructure, through the provision of works, technical advisory services and goods. Component 2 Institutional Strengthening and Hazard and Risk Analysis 4. Improving the capacity of the Ministry of Housing, Informal Human Settlements, Lands and Surveys and Physical Planning (MoHILP), and the National Emergency Management Organization (NEMO), for evaluation of natural hazard and climate change risks, through the provision of training to the respective staff of MoHLP and NEMO, provision of technical advisory services and acquisition of goods required therefore. Component 3 Project Management and Implementation Support 5. Strengthening and developing the institutional capacity of the PSIPMU for Project management and execution, including procurement, financial management and supervision of Project activities, through the acquisition of goods, provision of technical advisory services, training, and operating costs. 6. The project is 100% Bank funded with no co-financing involved. B. Emergency Challenge Country Context 7. Saint Vincent and the Grenadines consists of 32 islands covering a total of 389 square km with a total population of 104,000. Saint Vincent, the northernmost island, is the country's commercial and political center, accounting for 90 percent of both the land area and population. The volcanic island is lush and green, its deep valleys cultivated with bananas, coconuts and arrowroot. The other islands belong to the Grenadines, a chain of about 800 islets extending between Saint Vincent and Grenada, which attract a large number of yachting tourists. 6
8. Following a high average growth of 5.6 percent in the period of 2004-2008, the SVG economy has been adversely affected by the global economic downturn, resulting in negative growth of 2.8 percent in 2009. This is the first time SVG has had a negative growth rate since 1994. According to preliminary data from the Eastern Caribbean Central Bank, the situation will deteriorate in 2010. In this context, real GDP (market prices) is estimated to shrink by 6.7 percent. Consequently, estimated losses in the agriculture sector in the amount of US$25 million will correspond to 4.5 percent of the nominal GDP (2010) and 14.5 percent of the overall fiscal revenues (2009). 9. SVG is exposed to a range of natural hazards. Most important are hazards stemming from weather related phenomena such as winds, rainfall, hurricane and drought. The islands experience an annual hurricane season from June to November, followed by a rainy season from November to January. 10. SVG is located in the Eastern Caribbean and this sub-region is extremely vulnerable to frequent natural disasters, especially hurricanes. Historical data indicate the regional probability of a hurricane in any given year is about 18 percent. Any hurricane can cause major economic damage resulting in significant public expenditures not accounted for in the national budget. For example, damages to SVG caused by Hurricane Ivan in 2004 were estimated at US$40 million or approximately 10 percent of GDP (2004). This was compounded by GDP losses incurred in subsequent years owing to reduced agricultural productivity and adverse impacts to the tourism sector. 11. At approximately 12:00 pm local time on Saturday October 30, 2010, Hurricane Tomas, a Category 1 Hurricane on the Saffir-Simpson Hurricane wind scale, passed the northern most part of SVG. Wind speeds were estimated at 75 mph (120 km/h) with gusts reaching up to 90 mph. The storm developed rapidly off the coast of Barbados and reached Category 1 strength within 24 hours after the first storm watch was issued. Hurricane force winds affected the northern and eastern areas of SVG. The southwestern parts of SVG avoided hurricane force winds due to the protective effect of the interior mountains. The Grenadines received Tropical Storm force winds, high in the north, minimal towards the south of the chain. Storm surge and wave action were significant, and of particular note is the high wave action on the leeward coast of SVG which received very rare onshore westerly winds as the storm passed to the north. Overview of Adverse Economic and Social Impacts 12. Hurricane Tomas caused heavy damage in SVG. National disaster areas were formally declared in accordance with the SVG National Emergency and Disaster Management Act, 2006, by the Government of Saint Vincent and the Grenadines (GoSVG) from Park Hill to Sandy Bay on the Windward side and Belle Isle to Fitz Hughes on the north western side of the island. Over 26 percent of the population was severely impacted. Approximately 1,200 persons were displaced and took refuge in 21 designated shelters. 13. The hurricane damaged private homes, public buildings and infrastructure, roads and power systems. Local damage to the distribution network for both power and water (transmission lines etc) was responsible for most of the service interruptions; however, by November 2, 2010, 7
90 percent of the population had access to power and 70 percent of the water company clients were being served. The agriculture sector experienced significant losses, estimated in excess of US$25 million, with banana crops comprising most of the losses. The government-led detailed housing damage assessment concluded that over 1,200 homes were damaged. Parts of the road network were closed in the days following the event. The primary road network experienced limited damage compared with key secondary roads. Three public schools and five community centers were badly damaged. 14. Over 1,200 persons were displaced by the storm (1.2 percent of the population). While damage to schools was limited, with three structures significantly affected, in accordance with the National Shelter Policy, schools used as emergency shelters were closed to accommodate displaced persons. This adversely affects families and school children forcing parents to change their work schedules to accommodate displaced students. Additionally, several schools suffered ancillary damage resulting from their use as shelters. 15. Impacts were felt in the health sector including loss of services and some damage to infrastructure. Ambulance services were temporarily halted, and as most clinics lack generator systems, many health clinics were without power. The national hospital experienced flooding. 16. Landslides from the storm was significant and, in some areas along roadways, has created dangerous situations as slopes have been destabilized. Until stabilized, road blockages will continue to occur as slopes continue to erode. In some areas, increased probability of landslides has placed private property at risk and conditioned crop fields have been rendered useless. 17. Commercial access to the island through ports and airports was unaffected, except for temporary closures during the storm event. Government response 18. Immediately after the event, the Government declared natural disaster areas in the most affected parishes (see map in Annex 14). Public utilities were restored to near full service in a matter of days and the primary road system was cleared within a week of the event. In accordance with the National Emergency Management Office Act (2006), the Damage and Needs Assessment Committee (15 members) began work immediately after the passage of Tomas. 19. On November 10, 2010, the Assessment was completed with contributions from the Ministry of Transportation and Works (MoTW), Ministry of Education (MoE), Ministry of Agriculture (MoA), Ministry of Housing, Informal Human Settlement, Lands and Surveys, and Physical Planning (HILP), National Emergency Management Office (NEMO) and others. The Government budget will be reallocated internally for recovery activities, in accordance to the recommendations of the Damage and Needs Assessment. 20. Emergency repair works were initiated in the form of temporary fixes to protect damaged structures from further exposure. MoTW completed debris removal from landslides on roads and bridges within days and the majority of affected students were back in school within two 8
weeks. Initial plans and designs are under preparation for rehabilitation and reconstruction works activities. Government strategy for recovery 21. The GoSVG s recovery strategy is focused on the repair and rehabilitation of damaged structures and the elimination of potential dangerous exposures and debris created by the storm. Initial government efforts are designed to stabilize the situation with temporary patches and other protective measures to restore services and guard against compound damages. 22. Planning for recovery investments is well underway as GoSVG has completed its damage assessment and, in many cases, begun the process of prioritization of investment activities. GoSVG has engaged with a number of donor and multilateral agencies to identify funding sources and to date has identified potential resources from the European Union, Caribbean Development Bank (CDB) and World Bank. Funds contributed by the European Union are expected to be directed towards agricultural rehabilitation while the CDB is expected to retroactively finance debris removal and other recovery activities such as damage assessments. In addition, the Caribbean Catastrophe Risk Insurance Facility (CCRIF) was triggered and has authorized US$1.09 million to be paid out under the program. 23. In addition to the GoSVG s Damage and Needs Assessment, the UN/ECLAC and the Organization of Eastern Caribbean States (OECS) are jointly undertaking a Social Impact Assessment with a focus on Livelihoods. Based on the results of these assessments, and as funds become available, the GoSVG intends to execute projects in the affected sectors according to the priorities assigned during the development of the damage assessment. As rehabilitation efforts develop, the GoSVG, as part of the design process for works will look to build resilience into structures that will be rehabilitated. As a result, the scope of engineering works includes vulnerability identification, structural integrity assessment and the integration of improved resilience measures. Existing coordination mechanisms 24. Coordination between GoSVG agencies is proceeding in accordance with the national disaster response plan. NEMO as one of the lead agencies in the assessment process, is working with line agencies to coordinate the initial collection of sector based information. The Ministry of Finance and Economic Planning (MoFEP) is serving as the focal point for organizing government activities with donor and multilateral agencies. C. Bank Response The Project Brief description of Bank s strategy of emergency support 25. Prior to Hurricane Tomas, the Bank together with MoFEP was in the process of preparing two disaster/climate risk management programs, the Disaster Vulnerability Reduction Project 9
(DVRP) and the Pilot Program for Climate Resilience (PPCR). Combined, these programs are expected to total US$15-18 million in physical risk reduction activities. Additionally, the DVRP and PPCR are expected to improve the government s capacity to reduce risks to natural hazards and climate change in its development planning and programs by creating capacity to measure hazard risk and integrate these measures in development policy and planning. The preparation of these projects will continue and both are expected to be submitted for Board Approval in FY11. 26. The Hurricane Tomas Emergency Recovery Project would provide needed additional resources to expedite SVG s effort to rehabilitate damaged infrastructure and stabilize high risk areas. The project would also include institutional strengthening investments aimed at improving the Government s capacity to identify and assess risks to adverse natural events. Proceeding with urgent rehabilitation works under BP/OP 8.00 will enable the Recipient s to begin work on strengthening vulnerable infrastructure prior to the 2011 hurricane season. Project development objectives 27. The project aims to assist the Government in recovering from the impact of Hurricane Tomas. Its development objectives are to support the Recipient s efforts to: i) rehabilitate damaged and vulnerable infrastructure, caused by the passage of Hurricane Tomas; and ii) strengthen the Recipients s ability to analyze location specific risks. Summary of project components 28. Component 1 Rehabilitation of vulnerable and damaged infrastructure (US$4,420,000): Carry out the rehabilitation and reconstruction of damaged infrastructure, including, inter alia, school buildings and associated school infrastructure, community centers, strengthening a river defense site, stock-piling gabion baskets, and transport infrastructure, through the provision of works, technical advisory services and goods. 29. Component 2 Institutional Strengthening and Hazard and Risk Analysis (US$164,000): Train staff and procure equipment to improve the capacity within the Ministry of Housing, Informal Human Settlements, Lands and Surveys and Physical Planning (MoHILP) and the National Emergency Management Organization (NEMO), to work with geo-referenced information. This is an important basis for evaluating natural hazard and climate change risks. 30. Component 3 - Project Management and Implementation Support (US$416,000): Strengthen and develop the institutional capacity of the PSIPMU for Project management and execution, including procurement, financial management and supervision of Project activities, through the acquisition of goods, provision of technical advisory services, training, and operating costs. Eligibility for Processing under OP/BP 8.0 31. The proposed project is an ERL that would be processed under the Operational Policy / Bank Procedures 8.00 (Rapid Response to Crises and Emergencies) in response to the passage of Hurricane Tomas on October 31, 2010. This policy is triggered upon the formal request from the 10
government for assistance. The losses and damages caused by Hurricane Tomas are estimated to be between 5-10% of the SVG GDP. Some of the damages call for immediate action to rehabilitate and secure public buildings and areas. A streamlined ERL with simplified procedures is the most appropriate instrument to respond to the immediate needs of SVG following this disaster. Consistency with Regional Partnership Strategy for OECS 32. The World Bank Group s assistance to the OECS for the FY 2010-14 under the Bank s Regional Partnership Strategy (RPS) (Report #53762-LAC) discussed by the Executive Directors on May 3, 2010, focuses on two strategic objectives: i) building resilience; and ii) enhancing competitiveness and stimulating growth over the medium-term. To help build resilience, the Bank Group supports interventions aimed at promoting fiscal and debt sustainability, protecting and improving human capital, and strengthening climate and disaster resilience. 33. In line with the RPS objectives, this project would focus on activities contributing to vulnerability and risk reduction through a combination of works and institutional development activities. These activities are designed to improve national resilience to disasters. These activities directly address one of the core objectives of the RPS for the OECS, and contribute to the strengthening of fiscal sustainability through improved risk reduction and increased resilience to natural disaster. Expected Outcomes 34. Expected outcomes for this project include: i) students returned to structurally sound schools; ii) improved access to safe shelter during and after of adverse natural events; and iii) improved data and data management resources and capacity. 35. Expected output indicators include: i) number of schools rehabilitated, repaired, or rebuilt with due attention given to resilience sustainability; ii) number of shelters rehabilitated, repaired, or rebuilt with due attention given to resilience sustainability; and iii) number of government officials of NEMO and MoHILP able to produce location specific exposure maps. D. Appraisal of Project Activities Technical Appraisal 36. The project activities to be included for financing under the emergency operations have been limited to the most urgent rehabilitation and reconstruction activities. Investments under the project have been identified and prioritized. Activities include the rehabilitation of three schools, four community shelters, one vulnerable riverbank and one road intervention. Designs and contract documents for civil works which will aim at achieving resilience to future natural hazard events for the financed interventions. 11
Fiduciary 37. Financial Management. The Public Sector Investment Program Management Unit (PSIPMU) within the Department of Planning of the MoFEP is responsible for managing the financial management aspects of the project. Overall, the PSIPMU has good financial management capacity. PSIPMU is using computerized financial management system, which would be able to prepare timely Interim Financial Reports and annual financial statements. The PSIPMU has a Financial Management Specialist who is conversant with the Bank s project financial management requirements. Further details can be found in Annex 5: Financial Management and Disbursement Arrangements. 38. Procurement. The most recent Procurement Capacity Assessment of the PSIPMU has rated the risk of procurement implementation by this agency as average with a procurement expost review mission required each year. 39. The procurement staff has been at their current posts for the past four years and is composed of two procurement officers and one procurement assistant. PSIPMU has sufficient procurement capacity to carry out all the procurement needs of the proposed project. Damage and Needs Assessment 40. The GoSVG carried out its own assessment of damages following the hurricane. Based on this assessment, the GoSVG requested the World Bank to focus on critical damaged infrastructure including public buildings. The team conducted field assessments reviewing damages and worked closely with GoSVG in the selection of the suite of works to be included in the project. The team reviewed with Ministry of Public Works and Transport (MoTW) their plans for rehabilitation. A final review of the works portfolio was conducted with the MoFEP resulting in the selection of seven specific works projects for inclusion under the project. Institutional Strengthening 41. Institutional strengthening activities were designed to support improving capacity for risk analysis as the basis for better integration of measures to reduce hazard risk in national and sector development plans. The activities included under this component were evaluated by the team in discussion with the MoHILP, NEMO and the MoFEP, and selected taking into account the activities planned under the DVRP/PPCR project in preparation. Initial data collection and equipment purchases are included under this project. These activities are designed to advance and complement future plans under the DVRP/PPCR project. Infrastructure rehabilitation / reconstruction 42. A final review of the works portfolio was conducted with the MoFEP resulting in the selection of seven specific works projects for inclusion under the project. Costs for execution were provided by the MoTW and a portfolio review was conducted by the team together with MoTW to verify estimates. As these works had been evaluated previously during DVRP/PPCR 12
preparation, baseline costs had been identified. Revised costs were provided by MoTW to include the damages incurred by Hurricane Tomas. Lessons learned and reflected in the project design 43. The proposed project design takes into account lessons learned from previous emergency operations in SVG and from World Bank global experience with emergency response operations. A recent Independent Evaluation Group 1 report on World Bank assistance for natural disasters derived key lessons for project design and implementation: Simplified objectives and limited scope improves efficiency. While the needs are significant, complex multi-sector operations are difficult to implement. The proposed project focuses on two main issues: i) strengthen capacity to identify and mitigate vulnerability to natural disasters; and ii) rehabilitate key infrastructure, such as inter alia, Government buildings and the transportation network. Early engagement is key to success. While there are risks associated with emergency operations, potential rewards are high. The proposed operation would therefore be processed under OP/BP 8.00 which allows the World Bank to respond swiftly to the needs expressed by the GoSVG. Emergency operations should complement other World Bank and donor post-crisis assistance. Emergency operations are typically part of a broader strategy with a specific focus on swiftly restoring key public services and rehabilitating key infrastructure. The proposed project would effectively complement the World Bank s efforts in disaster risk reduction. This operation sets the foundation for the DVRP and PPCR that are currently being prepared. Environmental Category 44. This project is rated Category B under the Bank Operational Policy 4.01 (Environmental Assessment) owing to the possible need for an Environmental Assessment associated with river defense works. Remaining works are rehabilitation, reconstruction and roadway repair and stabilization. All the physical works to be financed have been identified and screened by the Bank. Bank Policy Exceptions 45. No exceptions to Bank policy are sought under this project. 1 Independent Evaluation Group (World Bank). 2009: An Evaluation of World Bank Assistance for Natural Disasters. Since 1984, the Bank has financed a total of US$26 billion in disaster management activities. These more than 500 projects represent almost 10 percent of all Bank loan commitments during this period. Over 80 percent of Bank disaster financing has addressed rapid onset disasters - floods, earthquakes, tropical storms and fires. 13
E. Implementation Arrangements and Financing Plan 46. The proposed project will be implemented by PSIPMU in the MoFEP, which will be responsible for the financial management and the procurement for the project. The PSIPMU has been implementing World Bank financed projects for almost eight years and is well versed in World Bank procurement guideline and procedures. This entity will be responsible for carrying out procurement and financial management under the project. 47. The PSIPMU is a unit within the Central Planning Division of the MoFEP. The PSIPMU will be maintained for the duration of the project. The PSIPMU reports directly to the Director of Planning. The leader of the PSIPMU who manages the capital investments of the GoSV, will serve as the Project Coordinator. The PSIPMU will finance two full-time procurement specialists, a full-time financial management specialist, a part-time social development specialist and a part-time engineer. Detailed terms of reference for each PSIPMU staff, and a description of the respective responsibilities of the PSIPMU and implementing agencies will be prepared and included in the project s Operation Manual. 48. For the acquisition of technical equipment and execution of civil works, the PSIPMU will rely on technical support from the MoHILP, NEMO and the MoTW for the technical descriptions for the bidding documents and for some of the implementation supervision. Project Financing Plan - Summary Table Component Sector US$ '000s % of Project A. Rehabilitation of vulnerable and damaged infrastructure MoTW 4,420 89% B. Institutional Strengthening and Hazard and Risk Analysis NEMO, MoHILP 164 3% C. Project Management and Implementation Support MoFEP 416 8% TOTAL 5,000 49. Credit funds will be disbursed to single segregated Designated Account (US dollar account), and this account will be utilized for the purposes of the implementation arrangements agreed. The Designated Account will be opened by the MoFEP and maintained in the National Commercial Bank (a commercial bank). The Ceiling of the Designated Account will be US$500,000. The management of this account will be the responsibility of the PSIPMU. The PSIPMU will transfer funds from the Designated Account to a local project account, from which checks or transfers (in local currency) will be issued to the providers of goods and services. The project will reconcile (monthly) both the project account as well as the Designated Account, and 14
submit to the Bank, the documentation regarding both accounts together with the Withdrawal Applications supported by Statement of Expenditures (SOE) and/or Summary Sheets and Records. The Project will also be able to use the Direct Payment and Reimbursement disbursement methods. The Minimum Application Size for Direct Payments and Reimbursements will be US$100,000 equivalent. The frequency for reporting eligible expenditures paid from the Designated Account will be quarterly. 50. Retroactive financing of up to SDR 1.32 million (US$ 2 million equivalent) (about 40 % of the total proposed credit) would be available for eligible expenditures incurred since the hurricane event on October 30, 2010, provided the expenditures comply with the agreed procurement guidelines. This provision is allowed for under Operational Policy 8.0 and will allow the grant to cover the earlier preparation activities to expedite the progress of the Project. 51. Procurement arrangements and Simplified Procurement Plan: A simplified procurement plan has been prepared for the first 18 months of project implementation (Annex 6). 52. Procurement for the proposed project would be carried out in accordance with World Bank Guidelines: Procurement Under IBRD Loans and IDA Credits", published in May 2004 (revised October 2006, and May 2010); and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" published in May 2004 (revised in October 2006, and May 2010), with additional flexibility in the procurement of works, goods, and consultant services as stipulated in OP/BP 8.0 for Rapid Response to Crises and Emergency and the provisions stipulated in the Financing Agreement. Details of specific procurement activities are discussed in detail in Annex 6. For each contract to be financed by the Credit, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and timeframe are agreed between the Borrower and the Bank and are reflected in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. Monitoring and Evaluation 53. Monitoring and evaluation will be managed by the PSIPMU. Training for the development of performance indicators, data collection and evaluation methods has been included in previous World Bank projects being implemented by the current PSIPMU. The World Bank team will assist the PSIPMU in tracking performance indicators during regular supervision missions. 54. In accordance with OP/BP 8.00 on Rapid Response to Crises and Emergencies requirements, a Bank team will visit SVG no less than four times the first 12 months following effectiveness of the project to supervise ongoing activities and to carry out a post review of contract and procurement actions. Thereafter the project will be supervised at least twice a year. Based on the overall risk assessment (average) and the limited number of civil works involved, the post-review field analysis should cover all major investments (preventive physical mitigation measures), and a sample of not less than one in three civil works facilities. 15
Closing date and implementation schedule 55. The proposed project would be implemented over a three year period, with a closing date of December 31, 2013. Disbursements are scheduled to be front-loaded in FY11 and FY12. The contracts for the identified infrastructure works are all expected to be signed during the first three months of implementation. F. Key Risks and Mitigation Measures 56. As referenced in Annex 4: Operation Risk Assessment Framework (ORAF), key risks to achieving Project Development Objectives (PDO) were identified as well as mitigation measures to minimize the potential impact of these risks. The ORAF will also be used to monitor and reassess risks and review mitigation measures during project implementation. There are no controversial aspects of the project. 57. The overall risk rating for project implementation is Medium-I. A Medium-I risk rating corresponds to a risk that would have high impact if it took place but a low likelihood of occurring. This rating reflects the high vulnerability of the region to exogenous shock, which is variable and unpredictable, but can have a significant impact if a disaster event occured during project implementation. 58. The identified risks fall into the following four broad categories: 2 1) Stakeholder Level Risks; 2) Operating Environment Level Risks; 3) Implementing Agency Level Risks; and 4) Project Level Risks. Correlating mitigation measures concentrate on the risks that have the potential to derail implementation and could affect the achievement of the PDOs. 59. Implementing agency level risks include inadequate coordination, quality control and information sharing mechanisms across various agencies and levels (regional and national), which are essential given the project s cross ministerial implementation design. To improve government coordination and promote data sharing, the Bank is providing technical assistance in data management and risk modeling to relevant government institutions. To ensure quality control, the Bank is allocating funds for independent inspections and plans to establish critical path inspection procedures and integrate them into construction contracts. G. Terms and Conditions for Project Financing 2 Stakeholder Level Risks: these are risks that could have an impact on the implementation of the project that teams need to be aware of and mitigate where possible; Operating Environment Level Risks: these include country and institutional setting risks. Project teams should be aware of these risks but they are not expected to mitigate them at the project level (but the teams should take them into account as they assess the specific project risks); Implementing Agency Level Risks: where there is scope to influence the risk level through the operation (for example through mitigation measures and project design); and Project Level Risks: where there is the most scope for mitigating and controlling risk levels through project design and implementation. 16
60. Following the GoSVG s official request for financial support, the project will be financed by a Standard IDA credit in the amount of SDR 3.3 million (equivalent to US$5 million). The Credit has a grace period of 10 years and a final maturity of 35 years. 17
Annex 1: Detailed Description of Project Components SAINT VINCENT AND THE GRENADINES: Hurricane Tomas Emergency Recovery Project Component 1 Rehabilitation of vulnerable and damaged infrastructure (US$4,420,000) 1. This component would include a specific set of works activities including the rehabilitation and reconstruction of damaged schools, and community centers, the strengthening of a river defense site and the rehabilitation of transportation infrastructure. These civil works would aim at delivering resilience of these structures to be executed to ensure the structures are resilient to future adverse natural events, thereby reducing their vulnerability to natural hazards. The list of works was prioritized by the Government in the Appraisal Mission that took place in early November 2010, and include, inter alia, the following: Rehabilitation and reconstruction of damaged schools, including: a) Georgetown Secondary; b) Georgetown Primary; c) Troumacca Secondary Rehabilitation and reconstruction of damaged community centers, including: a) Rose Hall; b) Rose Bank; and c) Rillan Hill Strengthening of the Marriaqua River Defense (Tiviot River) Stock-piling of gabion baskets Rehabilitation of Hopewell Road Component 2 Institutional Strengthening and Hazard and Risk Analysis (US$164,000) 2. This component would finance training of staff and procurement of equipment to improve the capacity within the Ministry of Housing, Informal Human Settlements, Lands and Surveys and Physical Planning (MoHILP) and the National Emergency Management Organization (NEMO), to work with geo-referenced information. This is an important basis for evaluating natural hazard and climate change risks. Activities would include purchase of equipment and provision of services to assist with data collection and management. This component is structured to assist with building the capacity of NEMO and MoHILP in risk analysis and is designed to lay the foundation for activities included in the Disaster Vulnerability Reduction Project currently in preparation, including: Identification and creation of required baseline data for hazard assessment and risk modeling Development of institutional systems for the collection, sharing and management of geospatial data among national agencies and with regional institutions Purchase of technical equipment needed to support risk management and analysis including GPS instruments, computer and server hardware, GIS and analytical software, large flatbed scanner, plotters and related equipment. 18
Component 3 - Project Management and Implementation Support (US$416,000) 3. Activities under this component relate to the institutional support and capacity development for project management and execution. They include training, staffing and assistance associated with project execution such as consulting services and support for: Preparing designs and tender documents for execution and supervision of works, purchase of goods and contracting of training activities; Completing of project reporting; Processing of contracts including the evaluation of tenders, preparation of evaluation reports, selection of contractors and negotiation and supervision of contracts; Liaising with participating line ministries during project execution; Supervising the quality of works; and Other activities, as required, to provide support to the project management unit. 19
Annex 2: Results Framework and Monitoring SAINT VINCENT AND THE GRENADINES: Hurricane Tomas Emergency Recovery Project Project Development Objective (PDO): The development objectives are to support the Recipient s efforts to: i) rehabilitate damaged and vulnerable infrastructure, caused by the passage of Hurricane Tomas; and, ii) strengthen the Recipient s ability to analyze location specific risks. Data Source/ Responsibility for Description (indicator Unit of Cumulative Target Values Frequency PDO Level Results Indicators Baseline Methodology Data Collection definition etc.) Measure YR 1 YR 2 YR3 Indicator One: Number of affected students returned to structurally improved schools Core Number of students Three (3) school buildings damaged during Hurricane Tomas with a total student population of 1100. 200 700 1,100 Bi-annual Annual Project Progress Reports Certificates of completion Ministry of Transport and Works Number of students who after Hurricane Tomas were moved to different school locations returned to target schools that have improved structures Indicator Two: Number of people with access to safe emergency shelters with gender separated bathroom and shower facilities Indicator Three: Number of government officials of NEMO and MoHILP able to produce location specific exposure maps Number of people Number of officials trained Six (6) government buildings that serve as shelters, including three (3) schools and three (3) community centers damaged by Hurricane Tomas. These 6 shelters serve 1,300 people Two institutions with a total of 2 technical officials with specific training on GIS analysis tools Evaluation of Consultants Final Report 150 1,150 1,300 Yearly Annual Project Progress Reports Certificates of completion Evaluation of Consultants Final Report 4 6 6 Yearly Annual Project Progress Reports Number of people participating on training NEMO and Ministry of Transport and Works MoHILP/ Physical Planning Unit Number of people with access to safe emergency shelters with gender separated bathroom and shower facilities Measurement of increased national capacity to capture and manage climate data. Inventory report of instrumentation /software installed 20
INTERMEDIATE RESULTS Intermediate result level indicators Core Unit of Measure Baseline Cumulative Target Values YR 1 YR 2 YR 3 Frequency Data Source/ Methodology Responsibility for Data Collection Description (indicator definition) Intermediate Level Result (Component One) Intermediate Result indicator One: Number of emergency shelters that have male and female bathroom facilities rehabilitated/reconstructed under the project. Number of emergency shelters Number of schools Three (3) community centers damaged by Hurricane Tomas. These three (3) shelters serve 500 people Three (3) government school buildings were damaged during Hurricane Tomas with a total student population of 1100. 1 3 3 Yearly Annual Project Progress Reports Certificates of completion Evaluation of Consultants Final Report 1 2 3 Bi-annual Annual Project Progress Reports Certificates of completion Evaluation of Consultants Final Report NEMO and Ministry of Transport and Works Ministry of Transport and Works Number of emergency shelters that were damaged by Hurricane Tomas that are rehabilitated/reconstructed under the project that have male and female bathroom facilities. Number of schools that were damaged by Hurricane Tomas that are structurally improved/rehabilitated under the project. Intermediate Result indicator Two: Number of schools structurally improved/rehabilitated under the project. 21
Intermediate result level indicators Core Unit of Measure Baseline Cumulative Target Values YR 1 YR 2 YR 3 Frequency Data Source/ Methodology Responsibility for Data Collection Description (indicator definition) Intermediate Level Result (Component Two) Intermediate Result indicator One: Number of NEMO and MoHILP staff trained in GIS analysis tools. X Number of officials trained Two (2) institutions with a total of two (2) technical officials with specific training on GIS analysis tools 4 6 6 Yearly Annual Project Progress Reports Number of people participating on training MoHILP Measurement of increased national capacity to capture and manage climate data. Intermediate Result indicator Two: Number of hazard maps produced by the government. Intermediate Result indicator Three: Number of public buildings geo-referenced in a national exposure database. Number of hazard maps Number of public buildings Currently on 3 hazard maps exist for SVG: a) a volcanic hazard map that is kept upto-date by UWI; b) a landslide hazard map that is 10 years out of date; and 3) a storm surge hazard map that is 10 years out of date There are currently 0 public buildings in national exposure database Inventory report of instrumentation /software installed 2 1 1 Yearly Annual Project Progress Reports Number of location specific hazard maps 10 30 50 Yearly Annual Project Progress Reports Number of public buildings included in exposure database NEMO and Ministry of Transport and Works NEMO and Ministry of Transport and Works Measurement of increased national capacity to capture location and hazard specific data. Measurement of increased national capacity to capture and analyze hazard exposure of public buildings Completion of database 22
Annex 3: Summary of Estimated Project Costs SAINT VINCENT AND THE GRENADINES: Hurricane Tomas Emergency Recovery Project Project Financing Plan In US$ 000's Component 1 Rehabilitation of vulnerable and damaged infrastructure Rehabilitation of Schools 2,446 Rehabilitation of Community Centers 868 River Defense Works (Tiviot River) 416 Slope Stabilization and Road Repair (Hopewell Road) 400 Stock-pile of Gabion Baskets 290 Subtotal 4,420 Component 2 Institutional Strengthening and Hazard and Risk Analysis Purchase of Goods 108 Technical Consultancy 56 Subtotal 164 Component 3 - Project Management and Implementation Support Project Coordination Unit 266 Vehicle 25 Technical Audits 40 Financial Audits 60 Operating Expenditures 25 Subtotal 416 Total Expenditures 5,000 23
Annex 4: Operational Risk Assessment Framework (ORAF) SAINT VINCENT AND THE GRENADINES: Hurricane Tomas Emergency Recovery Project Project Development Objective(s) The development objectives are to support the Recipient s efforts to: i) rehabilitate damaged and vulnerable infrastructure, caused by the passage of Hurricane Tomas; and, ii) strengthen the Recipient s ability to analyze location specific risks. PDO Level Results Indicators: Indicator One: Number of students returned to target structurally improved schools Indicator Two: Number of people with access to safe shelter during and after of adverse natural events Indicator Three: Number of government officials of NEMO and Min of Physical Planning able to produce location specific exposure maps Risk Category Risk Rating Risk Description Proposed Mitigation Measures Project Stakeholder Risks Completion of rehabilitation works before the next storm event. A detailed procurement plan has been agreed with the government. The government has sufficient capacity to carry out the needed works simultaneously, and to start the processes immediately following effectiveness of the project. Implementing Agency Risks Medium-L Complications in coordination of project activities across various agencies and levels (regional and national); inadequate mechanisms to ensure quality control. Project Risks Design Low-L Delays in project implementation could lead to greater losses related to already damaged infrastructure. It is agreed with Government that all procurement decisions and activities will be carried by PSIPMU. However, arrangements will be made for implementing agencies in the various ministries to provide technical input as requested by PSIPMU, particularly preparation of the bidding documents and tender and proposal reviews. In accordance to OP/BP 8.0, a Bank team will travel to SVG on a quarterly basis for project supervision. Regular Bank missions and a solid Government commitment as well as follow-up will help ensure that 24