Report No. PID9248 Project Name Mauritania-Urban Development Program @ Region Africa Region Sector Other Urban Development Project MRPE69095 Public Disclosure Authorized Borrower(s) Government of Mauritania Implementing Agency Address MINISTRY OF ECONOMIC AFFAIRS AND DEVELOPMENT (MEAD) Address: B.P. 238, Nouakchott, Mauritania Contact Person: Director of Planning (MEAD) Tel: (222) 254617/(222) 250349 Fax: (222) 254617/(22) 250349 AMEXTIPE, UDA, PCU Address: Nouakchott, Mauritania Contact Person: The General Directors Public Disclosure Authorized Tel: (222) 257511/(222) 257512 Fax: (222) 257513 SOCOGIM - Fax: (222) SONELEC - Fax: (222) 525 3995 Address: Nouakchott, Mauritania Contact Person: The General Directors Environment Category A Date PID Prepared October 12, 2001 Projected Appraisal Date February 5, 2001 Public Disclosure Authorized Projected Board Date October 25, 2001 1. Country and Sector Background Sector Issues(a) Urban poverty: Mauritania has experienced rapid urbanization with the urban population increasing from less than 4 percent in 1962 to the current estimate of 61 percent (1.6 million of the total population of 2.6 million). More than 50 percent of the urban population is concentrated in Nouakchott (about 700,000 inhabitants) and Nouadhibou (100,000 inhabitants). Accompanying this rapid urbanization is poverty, which affects about 35 percent of the urban population that lives a hand-to-mouth existence. The urban poor reside in substandard squatter settlements (271,590 persons in Nouakchott), located on the periphery of major urban centers, and lack basic infrastructure and services.The majority of the urban poor are nomads, who have settled on the periphery of cities (in particular Nouakchott), after losing their economic base and Public Disclosure Authorized most of their possessions due to persistent droughts and resulting desertification. This population can no longer obtain water free of charge from wells and cover minimum food requirements from stock raising and agriculture. As urban dwellers, they can only gain access to water and food by paying what, for the most disadvantaged, are very high prices. For relevant figures on water, see the data given in (c) below; in the case of food, daily expenditure per person is less than UM 100 (US$0.40). The average daily income per person in the District of El Mina is only US$0.5, of which 72 percent is spent for food (including 7 percent for water and 9 percent for energy). Moreover, although traditional links of mutual support have remained intact in rural areas and small towns, they have broken down in the urban environment, giving rise to marginalization or even total exclusion of the poorest people. This is particularly true in Nouakchott, where the scale of rural-urban migration has substantially exceeded the capacity of both State and municipal authorities to extend the necessary urban infrastructure and services and generate employment.(b) The case of Nouakchott and Nouadhibou: The population of these two cities has increased fivefold in 20 years, far outpacing existing capacities for urban and land management, the provision of housing, services, and job creation. Urban growth has been largely haphazard on the periphery of existing cities. These areas are characterized by very difficult and deteriorating environmental conditions, rudimentary dwellings, and the constant threat of expulsion of residents. The poorest people live in locations which are often remote from whatever inadequate social services, minimal urban infrastructure, and jobs that may be available.(c) Access to basic urban infrastructure and services and quality of shelter: The level of infrastructure, community facilities, and urban services remains very low for the most part and is aggravated by disparities between towns and between sections of the same town or city.Ratio of asphalted roadways per 100 inhabitants: This varies from 8 meters (m) to 133 m in secondary urban centers. In the case of Nouakchott, the average figure of 26 m covers a range from 5 m in the District of Arafat (169,000 inhabitants) to 134 m in the District of Tevragh-Zeina (54,000 inhabitants).Drinking water: The population connected to a drinking water supply network varies between zero percent in the cities of Kiffa (60,000 inhabitants) and Nema and 60 percent in Akjoujt (10,000 inhabitants). In Nouakchott, the average figure of 22.5 percent covers a range from 3.45 percent in the District of Arafat to 61 percent in the District of Tevragh-Zeina. Depending on the season, per capita daily consumption of water varies from: (i) 13 to 22 liters in the slum of El Mina (36,500 inhabitants) with average prices per liter of UMO.49 (US$2 per cubic meter) in the cold season and UMO.80 (US$3.2 per cubic meter) in the hot season; (ii) 16 to 28 liters in the District of Arafat with average prices per liter of UMO.54 (US$2.2 per cubic meter) and UMO.76 (US$3.04 per cubic meter). The daily average consumption rate for the city of Nouakchott is 40 liters with a price per liter of UMO.072 (US$0.3 per cubic meter) for connected clients of the utility company SONELEC.Sanitation: Only 32,000 inhabitants are connected to a sewerage system in Nouakchott and 4,000 in Akjoujt. Most housing units in squatter settlements do not have sanitary facilities or even latrines. The quality of housing varies from very rudimentary to comfortable and includes simple shelters made of plastic or canvas, wood and sheet-metal huts, one-room clay or cement block structures, small houses on enclosed plots, and permanent one-room dwellings. It is not surprising that housing is the first priority for all households living in slums. Only SOCOGIM, the State majority-owned enterprise is active in housing construction and production of serviced plots. However, its production targets the higher income strata and falls far short of the demand.(d) Infrastructure in support of economic development: Factor costs are extremely high and infrastructure is critically lacking, making Mauritanian cities less competitive than other cities in the region. Artisanal fishing, which is a labor-intensive industry with high export potential, and tourism are -2 - hindered by the lack of environmental and access infrastructure. With a coastline of about 700 km, artisanal fishing is concentrated in the immediate vicinities of Nouakchott and Nouadhibou. Poor environmental conditions, as well as damage to fish, induced by transportation on dirt roads, cause both fishermen and exporters to forego important premiums and tarnish Mauritania's quality label. The total lack of infrastructure along the coastline has blocked tourism development. (e) Urban management and decentralization: The legal framework governing urban planning and management is weak and has not been adapted to take into account decentralization reforms, introduced since 1986. Nor have the latter reforms been properly disseminated to a cadre of competent professionals. The division of responsibilities for urban development among State and local authorities, communities, and the private sector is unclear and causes major coordination problems. Urban development strategies adopted so far have essentially been sectoral, without direct linkage or complementarity with economic development, decentralization, urban management, and poverty-alleviation strategies. Local authorities do not have the necessary resources and essential urban management skills to carry out their functions and the framework for funding communes is inadequate. Community participation in decision-making and in the provision of urban infrastructure and services is in its infancy. It suffers from serious gaps in legislation and regulations with respect to the role of community-based organizations and their relationship with the governance structure. The development of Mauritanian cities has so far been essentially a by-product of rural-urban migration, and major cities have only recently started to develop participatory city development strategies.(f) Land tenure and management: Regularization of land property rights is a lengthy and cumbersome process. Inefficiencies in land registration and regularization have encouraged the emergence of an informal and speculative land market and proliferation of squatter settlements. Moreover, they constrain housing construction and the development of a mortgage finance system, and contribute to inadequate maintenance of records for property taxation. Private real estate development is virtually non-existent for lack of procedures and regulations allowing the transfer of land to developers for subdivision, servicing, and/or construction. Large subdivisions are made by the State from time to time and parcels are distributed to beneficiaries. The parcels, however, are not staked and no precise records are kept. As a result, huge tracts of land have been distributed and are still vacant, as beneficiaries have no way of identifying their parcels. Although the decentralization law assigns to municipalities the development of land in their respective jurisdictions, enabling legislation and clarifying regulations are lacking. Land belongs to the nation and no clear procedures exist for its transfer from the State to municipalities. The poor rarely have access to land with legal tenure; this has led to squatter settlements and precarious shelters. A survey (conducted in slums) shows that 98 percent of households are willing to build a home if they had a piece of land with a secure title.Government Strategy(a) Poverty reduction: