Document of The World Bank
FOR OFFICIAL USE ONLY
Report No: 432 13-DO Public Disclosure Authorized
PROJECT PAPER
ON A
PROPOSED LOAN
Public Disclosure Authorized IN THE AMOUNT OF US$SO MILLION
TO THE
DOMINICAN REPUBLIC
FOR AN
EMERGENCY RECOVERY AND DISASTER MANAGEMENT PROJECT
April 10, 2008 Public Disclosure Authorized
Sustainable Development Department Caribbean Country Management Unit Latin America and the Caribbean Region
This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without Public Disclosure Authorized World Bank authorization. Abbreviations
CURRENCY EQUIVALENTS
(Exchange Rate Effective April 3,2008)
Currency Unit = Dominican Peso 33.95 = US$l
FISCAL YEAR January 1 - December 31
ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy CAASD Corporacih de Acueducto y Alcantarillado de Santo Domingo (Santo Domingo Water and Sewerage Corporation) CDEEE Corporacih Dominicana de Empresas Eldctricas Estatales (Dominican Corporation of State Electrical Companies) CEPAL Comisih Econ6mica para Amdrica Latina y el Caribe (see ECLAC) CNE Comisi6n Nacional de Emergencia (National Emergency Commission) COE Centro de Operaciones de Emergencia (Emergency Operations Center) CORAASAN Corporacih de Acueducto y Alcantarillado de Santiago (Santiago Water and Sewerage Corporation) DR Dominican Republic EA Environmental Assessment ECLAC United Nations Economic Commission for Latin America and the Caribbean (see CEPAL) EGEHID Dominican Hydroelectric Generation Company EPP Emergency Project Paper ERDMP Emergency Recovery and Disaster Management Project ERL Emergency Recovery Loan ETED Dominican Electrical Transmission Company FM Financial Management IBRD International Bank for Reconstruction and Development IDB Inter-American Development Bank IEG Independent Evaluation Group IMF International Monetary Fund INDRHI Instituto Nacional de Recursos Hidraulicos (National Institute of Hydraulic Resources) SEEPyD Secretaria de Estado de Economia, Planificacion, y Desarrollo (see MEPD) SOH Secretaria de Estado de Hacienda (see MoF) MEPD Ministry of Economy, Planning and Development (see SEPyD) MoF Ministry of Finance (see SOH) NOM National Oceanic and Atmospheric Administration OCHA United Nations Office for the Coordination of Humanitarian Affairs ONAMET Oficina Nacional de Meteorologia (National Meteorology Office) OP/BP Operational Policy/ Bank Procedure 2 PDO Project Development Objective PRA National Program for Blackout Reduction TS Tropical Storm UERS Rural and Suburban Electrification Unit UNDAC United Nations Disaster Assessment and Coordination
Vice President: Pamela Cox Country Director: Yvonne Tsikata Sector Director: Laura Tuck Country Manager Christina E. Malmberg Calvo Sector Manager: Laura Tlaiye Task Team Leader: Ann Jeannette Glauber
3 FOR OFFICIAL USE ONLY This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization.
Table of Contents
A . Introduction ...... 6
B . Country and RegionaVSectoral Context ...... 6
C . Bank Response ...... 12
D. Appraisal of Project Activities ...... 19
E. Monitoring Arrangements ...... 25
F . Implementation Arrangements and Financing Plan...... 26
G . Project Risks and Mitigating Measures ...... 27
H. Terms and Conditions for Project Financing ...... 29
ANNEXES ...... 31
Annex 1: Detailed Description of Project Components ...... 31
Annex 2: Results Framework and Monitoring...... 42
Annex 3 . Summary of Estimated Project Costs ...... 46
Annex 4 . Financial Management Arrangements ...... 47
Annex 5: Procurement Arrangements ...... 62
Annex 6: Implementation Arrangements ...... 72
Annex 7 . Project Preparation and Appraisal Team Members ...... 75
Annex 8: Environmental and Social Safeguards Framework ...... 76
Annex 9: Preliminary List of Identified Works ...... 80
Annex 10: Disaster Prevention and Response in the Dominican Republic ...... 94
Annex 11: Documents in Project File...... 97
Annex 12: Statement of Loans and Credits ...... 98
Annex 13 . Country at a Glance ...... 100
Annex 14. Map IBRD 36028 ...... 103
4
Date: April 10,2008 Team Leader: Anne Jeannette Glauber Country Director: Yvonne Tsikata Sectors: Infrastructure, Environment, Sector Director: Laura Tuck Disaster Risk Management, Sustainable Sector Manager: Laura Tlaiye Development Project ID: P109932 Themes: Environmental Category: B
Expected effectiveness date: May 2008 Expectedrevised closing date: December 20 12
The project seeks to: (i)restore and strengthen priority, irrigation, electricity, water, and sanitation infrastructure damaged by Tropical Storms Olga and Noel or at risk ofdamage from future storms, and (ii)strengthen INDRHIs and CDEEE’s capacity for future risk management.
Short description: The PDO will be achieved through three components: (1) Rehabilitation and Risk Management in the Water Resources Sector (US$34.35 million); (2) Rehabilitation and Risk Management in the Electricity Sector (US$33.95 million); and (3) Rehabilitation ofWater and Sanitation Infrastructure in Santo Doming0 and Santiago (US$3.5 million).
Financing plan (US$m.) Source I Local I Foreign I Total Borrower Total IBRDADA 12 68 80 Trust funds Others Total 12 68 80
2007 2008 2009 2010 201 1 2012 Total IBRD/IDA 0 32 25 15 8 Trust funds Does the emergency operation require any exceptions from Bank policies? Yes [ 3 No [ XI Have these been approved by Bank management? Yes [ 1 No [ 1
Are any critical risks rated “substantial” or “high”? Yes [XI No [ 3 What safeguard policies are triggered, if any? Yes [X ] No [ ] Environmental Assessment (OP 4.01) and Safety ofDams (OP 4.37)
5
A. Introduction
1. This Project Paper seeks the approval of the Executive Directors to provide an Emergency Recovery Loan in an amount of US$80 million to the Dominican Republic for the proposed Emergency Recovery and Disaster Management Project (ERDMP). Consistent with OP/BP 8.0, this loan will help finance the costs associated with infrastructure recovery and rehabilitation in areas most affected by Tropical Storms Noel and Olga.
2. On October 28, 2007, Tropical Storm Noel struck the Dominican Republic, and the major rainfall affected much of the country. About 6,000,000 people or 70 percent of the population were directly or indirectly affected by Noel. Infrastructure-particularly that related to water resources management, transportation and energy-was heavily damaged, leading to impacts in key sectors such as agriculture, electricity, drinking water, and sanitation. Hardest hit were small agricultural operations and subsistence farmers, as well as rural and peri-urban residents. The country was still reeling from the effects of Noel when Tropical Storm Olga hit five weeks later on December 10. This storm displaced some 62,000 people and led to further infrastructure damage, particularly in the drinking water and sanitation sector.
3. This project is designed to respond to the Noel/Olga disaster by (i)restoring and rehabilitating water resources, electricity, water, and sanitation infrastructure damaged by the storms, or at risk of damage from future storms, and, (ii)reducing vulnerability to future disasters in the National Institute of Hydraulic Resources (INDRHI) and the Dominican Electricity Commission (CDEEE). The project design takes into account recent government reforms promoting decentralization which have delegated decision-making and implementation responsibilities to the individual sectors involved.
4. Accordingly, the key expected outcomes of the proposed project are: (i)12,000 hectares with irrigation services restored; (ii)four dams facilities rehabilitated with revised operational procedures to minimize impacts of future disasters; (iii)242 kilometers of transmission lines restored to improved disaster-resistant standards (iv) 200 megawatts of hydroelectric generation capacity restored; and (v) operation of Santiago wastewater treatment plant restored. (See Annex 2 for more detail).
B. Country and RegionaVSectoral Context
5. The Dominican Republic is subject to recurrent disaster events due, in part, to its hurricane- and tropical storm-prone geographic location. Mountainous areas in the central and western portions of the country are particularly susceptible to flash flooding and landslides. Deforestation and land use patterns have contributed to the country’s vulnerability by increasing rainfall runoff and erosion in affected regions. Although national efforts have sought to reduce vulnerability and improve water resources management through land restoration activities, the process is slow and complicated.
6. Economically, the Dominican Republic continued to experience a strong growth performance from the banking, macroeconomic and social crises of 2003 and 2004. Since 2005 through 2007, the Dominican economy experienced a booming recovery with real GDP
6 growth reaching 9.3 percent in 2005, 10.7 percent in 2006 and 8.5 percent in 2007. Macroeconomic stability improved markedly following the crisis period. Inflation was brought under control, from 5 1 percent in 2004 to single digits since 2005 and it averaged 8.9 percent in 2007. Nonetheless, higher-than-expected inflation has been sustained by high international commodity prices, especially international oil prices and by lag effects of an increase in food (agriculture) prices largely related to the Tropical Storms Olga and Noel that hit the country end-2007. With the implementation of the Government's macro stabilization program (supported inter alia by the IMF Stand-By Arrangement which ended in January 2008), the exchange rate stabilized at about RD$33/US$ in 2006 and 2007 compared to RD$49/US$ in early 2004.
7. While these efforts are ongoing, poverty in the Dominican Republic remains relatively high. With an estimated population of 9.6 million,' some 35.8 percent are living below the poverty level and approximately 11.8 percent are living in extreme poverty.2
Tropical Storms Noel and Olga
8. Tropical Storms (TS) Noel and Olga represented extreme events, given the climatic context in which they occurred. According to INDRHI (Instituto Nacional de Recursos Hidraulicos) observations, the storms occurred during an unusually wet rainy season: rains began earlier and ended later than normal, punctuated by the passage of TS Noel from October 26 to 31, 2007 and TS Olga from December 10 to 13 (which notably formed after the official end of the Atlantic Hurricane Season, November 30). Both storms produced excessive rainfall.
9. TS Noel primarily affected southern and eastern portions of the country. On average, the amount of rainfall experienced during the five-day storm was approximately 130 percent above the normal rainfall for entire month of October, and in some cases rainfall was 250 percent of the normal monthly allotment. The resulting heavy and prolonged rainfall affected much of the country, causing major flooding, landslides, the destruction ofbridges and roads, and severe damages to hydroelectric power generation and electricity transmission and distribution facilities, most severely affecting the southern and western areas of the country (including Santo Domingo and the Bajo Yuna basin).
10. The passage of Olga resulted in similar effects, although in northern and central portions of the country. Total rainfall amounts, reported by National Oceanic and Atmospheric Administration (NOM), for the three-day storm reached as much as 15 inches in some locations. The most serious problems were in and around the city of Santiago.
11. According to official estimates, Tropical Storm Noel caused 122 deaths and directly affected about 75,000 people. Daily life of many communities was disrupted by Noel as it
World Development Indicators Database, April 2007. 2008. Data from Presidential Commission for Millennium Development Goals (Copdes).
7 destroyed homes, roads, as well as community and productive infrastructure. Olga was responsible for displacing 62,000 people and for 33 death^.^
12. In human terms, Tropical Storms Noel and Olga, and their ensuing floods, affected 26 of the country’s 32 provinces including the capital, directly impacting over 80 percent of the country’s territory. The most dramatic effects were felt in the southwestern and western regions of the country including those provinces with the lowest Human Development Index.4 In fact, of the 75,000 inhabitants directly affected by the storm, 90 percent were living below the poverty line. Storm-related flooding disproportionately affected poor communities living along riverbanks and in other disaster-prone areas, such as along the steep slopes that characterize much ofthe island’s interi~r.~
Sector Impacts
13. Agriculture and energy, two key economic sectors in the country, were badly affected. Farming and animal husbandry-important sources of livelihoods and nutrition- bore $185 million in economic losses stemming from the loss of lands and irrigation services. Impacts to energy infrastructures, particularly those related to electrical generation, transmission and distribution are estimated at $76 million. In the water and sanitation sectors, at least $40 million in infrastructure impacts affected service provision to 2.5 million people.6
Agriculture
14. Storm-related impacts on the agricultural sector have serious implications for the food security of many Dominican households. Over 33,000 hectares of agricultural land were damaged by Noel, including up to 80 percent of the harvest in some areas.’ Banana and plantain cro s, representing an important nutrition and employment source for the Dominicans, Bwere most heavily affected, representing almost 50 percent of the total impacts to crops, while tomatoes, beans, and other vegetables were also damaged. Losses to livestock reached almost $20 million, primarily affecting poultry and, to a lesser extent, cattle. Damages to irrigation infrastructure, essential for agricultural production, were significant. Specifically, rupture of and sedimentation in water conveyance structures and damages to water intakes affected almost 4,000 km of canals, threatening the viability of existing crops.
Information from Civil Defense Agency and from OCHA Situation Report 3 - Tropical Storm Olga - Dominican Republic December 2007 United Nations (UN) Revised Flash Appeal: Dominican Republic Tropical Storms Noel and Olga, December 2007. ’ ECLAC. 2008. Evolucidn del Impacto de la Tomenta Noel en Repziblica Dominicana. Ibid. UN. 2007. According to ECLAC’s damage assessment (Evolucidn del Impacto de la Tomenta Noel en Repziblica Dominicana; 2008), about 85 percent of bananas and plantains is consumed locally. Likewise, the sector directly employs about 20,000 people.
8 Energy
15. Within the energy sector, transmission and distribution lines as well as hydroelectric generation facilities were most affected. Transmission impacts were most pronounced in the south, especially in Barahona, Bahoruco, Azua, Peravia, San Cristbbal, and the National District, and facilities of all three distribution utilities were affected. Damages to hydroelectric facilities were mostly to ancillary works (access roads), dams (Las Barias and Valdesia), and power generation plants (Aguacate, Nizao-Najayo, Aniana Vargas, Valdesia, Jiguey, Sabana Yegua, Rio blanco, Los Anones, y Las Barias).
Drinking Water and Sanitation
16. Water and sanitation services were most compromised through effects to water supply infrastructure (storage and distribution). In Santo Domingo, floodwaters produced significant erosion and damage to the city’s water processing infrastructure. Increased sediment loads during the emergency required major adjustments to the treatment process in order to produce potable water. The city’s water and sanitation company (Corporacih de Acueducto y Alcantarillado de Santo Domingo, or CAASD) quickly moved to repair the affected infrastructure in order to restore service to Santo Domingo residents.
17. During Olga, significant damage occurred in the city of Santiago, where floodwaters reaching 5 meters affected water and wastewater treatment, collection, and distribution services. In particular, the flood severely damaged the city’s primary drinking water treatment plant and the city’s primary wastewater treatment system. As was the case in Santo Domingo, local water and sanitation company (Corporacih de Acueducto y Alcantarillado de Santiago, or CORAASAN) conducted many of the repairs in the weeks immediately following the emergency.
Institutional Capacity for Disaster Risk Management
18. Following Hurricane Georges in 1998, the National System for Prevention, Mitigation, and Response to Natural Disasters was created under Law 147-02, with the objective of reducing risk, preventing disasters, and responding effectively to emergencies. The system’s main role is to coordinate the different entities at the central and local levels, and to develop and update the National Risk Management Plan and the National Emergency Plan, whose aims are to guide prevention and response operations. The system is operated by the National Council for Disaster Prevention, Mitigation and Response (Consejo Nacional de Prevencidn, Mitigacidn y Respuesta ante Desastres), which is chaired by the President and comprises the heads of all relevant government agencies and sectors, including representatives from the private sector and civil society. The council meets at least twice a year to discuss the relevant policies for disaster prevention, mitigation, and response
19. During emergencies, the Council, together with the National Emergency Commission (Comisih Nacional de Emergencias, CNE), which is chaired by the Executive Director of the Civil Defense Agency and is itself formed by the agencies represented in the Council, discuss the emergency situation with the President and with the other institutional representatives and advise on the specific response strategy. Consequently, the President,
9 who is the principal decision-maker during emergencies, issues any relevant decree that is considered appropriate for the situation. Direct emergency response is largely the responsibility of the Civil Defense Agency with support from the Red Cross. Longer-term disaster recovery and mitigation are the responsibilities of each sectoral agency.
20. Although the country has a sound legal framework which provides the elements and basis for an integrated disaster management strategy, the implementation of this strategy is still evolving. Further efforts are needed to improve coordination and capacity, disaster prevention and mitigation investments, information sharing among responsible agencies, and harmonization of methodologies and approaches used for local disaster risk assessments and management plans. Such weaknesses were evident in the response to TS Olga and Noel, which yielded a relatively high number of deaths and the damage. Both the IDB-supported US$5m disaster management project, which is currently awaiting ratification by Congress, and ongoing support from the UN, are specifically targeting several of the capacity weaknesses
Government Response
2 1. The National Meteorology Office (Ojcina Nacional de Meteorologia, ONAMET) began forecasting heavy rain starting October 26, 2007, and the Emergency Operations Center (Centro de Operaciones de Emergencia, COE) issued limited warnings to people in vulnerable areas. Nevertheless, the impact and magnitude of the storm were not accurately predicted until the October 29, when ONAMET alerted that heavy rains would c~ntinue.~ Flood warning announcements were made, and the public was advised to contact the Civil Defense and to be aware ofbulletins.
22. In accordance with the national emergency plan, the National Council for Disaster Prevention, Mitigation and Response met on October 29th, resulting in the declaration of a National Emergency under Decree 627-07 for Noel.
23. Under the guidance of the CNE, shelters started operating on October 29. The Dominican Red Cross and Civil Defense led the response to the storms. They received support from OCHA, the International Committee of the Red Cross, and the United Nations Disaster Assessment and Coordination (UNDAC) team. Line agencies such as the Ministry ofHealth (SESPAS) and the Secretariat ofPublic Works led initiatives such as distribution of medical supplies and urgent road repairs, respectively.
24. With the help of the State Secretariat of Economy, Planning and Development (SEEPyD) and the National Emergency Commission (CNE), the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) evaluated the damages from Noel and compiled a list of projects based on information provided by the respective line agencies and government agencies.
25. When Olga hit five weeks later, the response was similar. Following the issuance of Decree 678-07 and 47-08, the emergency response was again led by the Red Cross and Civil Defense. Damage assessments undertaken for Noel were updated to include the impacts of
OCHA report 8 and ECLAC report
10 Olga. This, together with the Government’s evaluation of Olga conducted by the SEEPyD, forms the basis for the Government’s rehabilitation and reconstruction plan.”
26. The Government’s recovery strategy reflects its commitment to the decentralization of decision making, with the sectors now responsible for defining priority activities. This approach is consistent with the new natural disasters law, which gives authority to the sectors to define and implement disaster prevention and recovery efforts. The sectors, in turn, have developed their recovery strategies. At the same time, the Government has worked to ensure that the sectors most affected by the storms have sufficient financing to meet priority reconstruction needs. Toward this aim, the Government has appealed to donors and multilateral agencies for support, taking into account existing synergies in the allocation of priority activities. In particular, immediately following the declaration of emergency the Government issued a request for assistance to the World Bank and the IDB.
NGO and Donor Support
27. In response to the Government’s appeal in the aftermath of Noel, the Dominican Republic received emergency humanitarian assistance from a number of NGOs, bilateral and multilateral organizations. In-kind assistance included food, drinking water, medicines, blankets, mosquito nets and other items urgently required after the disaster. The GoDR also received bi-lateral assistance for aerial search-and-rescue operations and delivering supplies to isolated areas. On November 11, 2007, the United Nations launched a Flash Appeal requesting the help of the international community to cover the immediate humanitarian needs. The appeal requested US$14 million for the first six months after the disaster. Following the second Tropical Storm, Olga, the Flash Appeal was supplemented by a request of additional US$4 million. As of March 7, 2008, US$12.5 million were committed and US$5.1 million were paid in to hdrelief and recovery activities. Table 1 shows the aid committed and disbursed by NGOs, bilateral and multilateral donors.
Table 1 -Financial Contribution to the Relief and Recovery Effort (Commitments, %US)
Multilateral 7,500,000 1,000,000 8,500,000 Total 10,300,000 7,000,000 16,300,000
Source: Financial Tracking Service report ofMarch 7,2008 on the basis ofinformation provided by the donors.
loIn this report, ECLAC recommended that the Government incorporate adaptation and mitigation criteria in its strategies and plans, and better risk management in its sectors and projects. According to this report, in addition to reinforcing the national strategy for disaster reduction; the Government should promote a strategy for watershed management, land planning, and environmental protection and recovery.
11 28. Immediately after Noel, the Inter-American Development Bank provided the Government with a US200 thousand technical assistance grant, followed in December 2007 by a US$20 million loan provided through the Immediate Response Facility for Emergencies, of which US$15 million was allocated to retroactive financing. The operation was aimed at restoring basic services and repair homes damaged by Tropical Storm Noel. In parallel, the IDB restructured two of its existing projects (transport and water and sanitation in Santo Domingo) to finance impacts to the health sector.
C. Bank Response
Rationale for Bank’s Involvement and Strategy of Emergency Support
29. A Bank team traveled to the DR on November 12th, 2007, visited the areas affected by Tropical Storm Noel, and initiated discussions on the best options for coordinated emergency support with the Government, community representatives, and donors such as UNDP and the IDB.” To quickly respond to the Government’s recovery needs, the Bank reallocated US$3 million from the ongoing Health Sector Reform Project to reestablish basic health services, provide vaccines and other priority supplies, and finance the storm damage assessment undertaken by the ECLAC. In addition to the reprioritization of existing funds, the Bank and the Government have agreed to prepare the proposed project to finance priority needs in other sectors, while keeping within the DR’s fiscal space constraints.
30. At the Government’s request, the Bank and the IDB, along with other donors including the UN, worked to ensure that all priority infrastructure needs are being met. In this context, it was agreed that of the four most affected sectors - irrigation, transport, electricity and water supply and sanitation - the IDB would finance the recovery in the transport sector, where it has an ongoing project, with more limited support in the irrigation and water supply and sanitation areas. At the same time, the World Bank would focus on the needs in the three areas where it has the longest institutional relationship on the ground (irrigation, electricity and water supply and sanitation).
31. As such, the project will build upon Bank experience in all three sectors. The Hurricane Georges Recovery Project12 included significant investments to reconstruct irrigation, electricity, and transport infrastructure, and activities to improve the country’s emergency response system. The project, which closed in 2003, was instrumental in drafting the current national legal and institutional framework for emergency response. The Bank was also active in the irrigation sector through the Irrigated Land and Watershed Management Project,13 which supported improvements in irrigation infrastructure, watershed management, and measures to strengthen INDRHI’s institutional capacity. The Bank has also been involved in the electricity sector. There are two projects currently under implementation: the Energy Technical Assistance Loan and the Programmatic Power Sector Reform Loan. Additionally, the Electricity Sector Distribution Rehabilitation Project, which is expected to be approved in May 2008, will be implemented in parallel with the proposed project.
See Aide-Memoire: Preparation Mission for the Tropical Storm Noel Recovery Project (November 12-17, 2007), available in IRIS and project files. The $1 11.11 million IBRD loan was approved on December 3, 1998. l3The US28 million loan was approved on May 2, 1995, and closed in December 2004.
12 Lessons Learned
32. The Bank has accumulated substantial regional and global experience in supporting post-disaster recovery. In the Dominican Republic, the Bank has experience from the emergency recovery assistance provided after Hurricane George in 1998.14 Experience from this operation, as well as from the IEG's 2006 evaluation ofthe Bank's natural disasters as~istance,'~provides important lessons that have been taken into account in the design of the proposed operation.
Emergency operations should focus on a small number of objectives, to match the brief implementation period. The proposed project will focus on three objectives: i)restoring and strengthening priority irrigation, electricity, water and sanitation infrastructure damaged by Tropical Storms Noel and Olga; ii)enhancing critical infrastructure in these sectors to reduce future storm-related impacts; and (iii)strengthening basic capacity for future risk management in INDRHI and CDEEE. The project's results framework will be simple, streamlined, and focused on specific outputs that can be reasonably expected to be achieved during the planned four years of implementation.
Implementation arrangements should recognize the weak institutional capacity of the implementing agencies and the fact that each agency is facing different bureaucratic requirements and procedures. Given the nature of the emergency and the country's existing institutional setup, effective emergency response must involve several sectors. However, in contrast to the Hurricane Georges ERL, the proposed project will not seek to establish a central implementation unit, but instead will use respective line agencies to implement each of the sectoral components. This would allow the project to progress independently in each area. Each implementing agency will use its own financial management systems, avoiding the lengthy delays experienced under the previous project that aimed to consolidate FM arrangements across agencies.
Fiduciary requirements financial management and procurement) in emergency assistance should be more flexible than in investment operations. The proposed project will be processed under the new OP 8.0, which allows for additional flexibility of FM and procurement arrangements.
Medium-term objectives of reconstruction and rehabilitation to hazard-resistant standards and longer-term institutional capacity building objectives should, as much as possible, be dealt with through separate means or instruments. The project will focus on reconstruction activities that are truly of an emergency nature, with some limited support for priority mitigation and risk management capacity building efforts. All other work will be handled through other instruments and under normal procedures.
l4Dominican Republic Humcane Georges Emergency Recovery Project (Loan 4420-DO, US$111.11 million) was approved on December 3, 1998 to provide quick-disbursing budget support for key imports, and support rehabilitation and reconstruction efforts in three sectors: roads and bridges, irrigation, and electricity. For the specific lessons from this o eration, see Implementation Completion Report (Report 27214) of December 2003. ''Hazards ofNature, Risks to Development: An IEG Evaluation ofWorld Bank Assistance for Natural Disasters (2006).
13 Ifpossible, the ERL should be implemented by relying on existing government staf and agencies. However, if government institutions are unable to implement a project, experienced staff need to be identijled and placed in project implementation units (PIUs) that have real decision-making power so that they can respond effectively to the rapidly changing post-disaster context. The project supports the Government in implementing its own program of reconstruction activities, and the identified implementing agencies have sufficient capacity to perform these activities. The project will also provide hands-on assistance to the implementing agencies in the areas where their capacity needs strengthening. For example, through supervision and the provision of medium-term consultant services to INDRHI, the emergency risk management system will be better able to predict and respond to storms, and the agency will have a plan for financing long- term operations and maintenance activities. Similarly, CDEEE will have an improved emergency risk management system under which critical systems and personnel are equipped to respond to storms.
The main challenge for emergency recovery operations is implementation, which increases the need for close supervision. Close management attention and adequate resources for supervision are required to ensure smooth implementation as well as timely provision of global knowledge and experience. As such, the team has developed an intensive supervision strategy.
0 Involve vulnerable communities in disaster-prone areas in planning and preparation as well as in rebuilding. The choice of priority subprojects under the irrigation component was made in direct consultation with the affected farmer communities.
0 Ensure systematic maintenance of essential infrastructure in disaster-prone areas, such as levees and flood control gates, to help protect vulnerable populations from future catastrophes. The proposed operation includes technical assistance to support improved operations and maintenance for essential water resources infrastructure, including dams and irrigation systems, to improve safety and reduce risk of flood-associated damage.
New approaches to financing the cost and prevention of disasters are needed regionally and globally, including better use of insurance mechanisms. Although this recommendation is beyond the scope of the proposed project, the Bank is working with the Government to explore the possibilities for the Dominican Republic to secure a Catastrophe Risk Deferred Drawdown Option, or alternatively to join the Caribbean Catastrophe Risk Insurance Facility.
14 The Proposed Project
Lending Instrum en t
33. The loan will be a $80 million U.S. Dollar commitment-linked fixed spread loan, with a 20 years repayment term including a 5 year grace period, and level repayments, with all conversion options. The repayment dates are the 15th ofMay and November.
Project development objectives
34. The project development objectives are to: (i)restore and strengthen priority, irrigation, electricity, water, and sanitation infrastructure damaged by Tropical Storms Olga and Noel or at risk ofdamage from future storms, and (ii)strengthen INDRHIs and CDEEE's capacity for future risk management.
35. Key outcomes expected by project completion include
12,000 hectares with irrigation services restored
0 Four dam facilities rehabilitated with revised operational procedures to minimize impacts of future disasters
0 242 kilometers oftransmission lines restored to improved disaster-resistant standards
0 200 MW of hydroelectric generation capacity restored
0 Operation of Santiago wastewater treatment plant restored
Summary of project components
36. The PDO will be achieved through three components: (1) Rehabilitation and Risk Management in the Water Resources Sector (US$34.35 million); (2) Rehabilitation and Risk Management in the Electricity Sector (US$33.95 million); and (3) Rehabilitation of Water and Sanitation Infiastructure in Santo Doming0 and Santiago (US$3.5 million). These components are detailed below.
37. It should be noted that the Borrower has asked that approximately 40% of the loan amount be used to finance priority retroactive expenditures made between the date of the declared emergency (October 29, 2007)16 and project signing. The majority of these expenditures (and other activities to be financed during the life of the project) have been evaluated both fiom the technical and fiduciary point of view. In all cases, so as to ensure that all proposed activities have the maximum benefit, they have been evaluated against a series ofcriteria (see paragraphs 38 and 39). The Bank is reviewing the updated proposed list of retroactive expenditures to assess which ones meet the criteria established for financing under the loan.
l6Specific goods up to an amount of$8million which were incurred after June 30,2007 are also eligible given that the Borrower used materials from existing stocks for emergency repairs.
15 38. Specifically, to be eligible for financing, all future expenditures must meet the following criteria:
Technical: (i)relationship to geographic areas most affected by the storms; (ii) direct linkage with the post-storm restoration of most critical needs and services; (iii)maximum beneficiary population; and (iv) in accordance with project Safeguard provisions. Procurement: (i)relationship to affected sectors and areas; (ii)in accordance with Bank procurement norms and procedures.
39. Additionally, all retroactive expenditures must meet the following criteria:
Technical: (i)relationship to geographic areas most affected by the storms; (ii) direct linkage with the post-stom restoration of most critical needs and services; (iii)maximum beneficiary population; and (iv) in accordance with project Safeguard provisions. 0 Procurement: (i)relationship to affected sectors and areas; (ii)contracts exist for purchase of priority storm-related works and goods; (iii)for contracts/goods procured during the emergency period (from October 29,2007 through March 28, 2008), done following procurement procedures acceptable to the Bank; and (iv) for contracts/goods procured after March 28, 2008, in accordance with Bank procurement norms and procedures.
Component 1. Rehabilitation and Risk Management in Water Resources Sector (US$34.35 million)
40. This component aims to: (i)rehabilitate the principal irrigation works damaged by Tropical Storms Noel and Olga; and (ii)support priority disaster-related institutional strengthening activities and equipment. The project would restore the operation of these systems through the reconstruction and stabilization of critical physical infrastructure such as water storage facilities, headworks, and canal systems.
Subcomuonent I.I. Rehabilitation and Reconstruction of Damaged Infrastructure
41. Activities under this subcomponent include the retroactive financing of emergency works completed in response to the disaster and the financing of reconstruction and strengthening works required to restore the irrigation and water resources management network. This component also includes financing for a technical audit of completed works.
Subcomuonent I .2. Strengthening of Risk Manazement Systems, Purchase of Technical Monitoring Equipment, and Development of Svstem Maintenance Program
42. Under this subcomponent, activities will be undertaken to improve INDRHI’s capacity for watershed management. Specific activities to be financed include the review and strengthening of system maintenance and operations procedures and requirements,
16 improvement of dam safety operations integrating the meteorological early warning system into operational procedures, improvement of the system for management and distribution of water resources management information to stakeholder agencies; and assistance with the development of a public education program on water resources and watershed management.
43. This subcomponent also supports the rehabilitation and strengthening of the national meteorological monitoring and early warning system, through the purchase and installation of critical repairs and equipment, as well as the development of an irrigation system maintenance and management plan.
Component 2. Rehabilitation and Risk Management in Electricity Sector (US$33.95 million)
44. The main objectives of this component are to restore priority electricity infrastructure and make improvements needed in the short term in the areas affected by Tropical Storms Noel and Olga, and to strengthen the sector’s ability to respond to natural disasters. It includes four subcomponents:
Subcomponent 2.1 :Rehabilitation of Generation Capacity.
45. This includes the rehabilitation of the hydroelectric generation facilities operated by EGEHID, which were damaged by the recent tropical storms, and specifically includes ancillary works (access roads), repair of dams (Las Barias and Valdesia), and rehabilitation ofpower generation plants (Aguacate, Nizao-Najayo, and Aniana Vargas).
Subcomponent 2.2: Rehabilitation of Transmission Cavacity.
46. Included activities are the rehabilitation of ETED transmission lines, including the future reconstruction of the 69 kV lines of 15 de Azua-Sabana Yegua, Cruce Cabral-Las Damas, Sabana Yegua-San Juan, Cruce Cabral - Vicente Noble, and Galeria Infiltracion CAASD Manoguayabo, with a total length of242 km.
Subcomponent 2.3: Rehabilitation of Distribution Cavacitv.
47. This subcomponent comprises rehabilitation works already performed by the distribution companies of EdeNorte and EdeSur, which are proposed for retroactive financing.
Subcomponent 2.4: Strengthening Capacity to Respond to Natural Disasters.
48. This includes activities aimed at enhancing the electricity sector’s capacity to respond to emergencies caused by natural disasters and at implementing the proposed project. This subcomponent also includes the completion of a technical audit to ensure quality of works supported by the project.
17 Component 3. Rehabilitation of Water and Sanitation Infrastructure in Santo Domingo and Santiago (US$3.5 million)
49. The objective of this project component is to restore storm-affected water and sanitation services to the cities of Santiago and Santo Domingo.
Subcomponent 3.1. Retroactive financing of emergency relief in Santo Domingo (US$O.7million)
50. This subcomponent consists of retroactive financing of emergency spending on water purification chemicals (such as chlorine and aluminum sulfate) used immediately following the storms, as well as extraordinary purchases of gasoline used for delivering potable water to the affected population in the wake of the storms. A breakdown ofthese costs is presented in Table 2.
Subcomponent 3.2. Retroactive financing of emergency rehabilitation works in Santiago (US$2.8 million)
51. In the aftermath of Olga, CORAASAN moved quickly and effectively to rehabilitate the damaged infrastructure and restore services to the public. Within the first three months after the disaster most of the rehabilitation work was completed or well underway. Special emphasis was placed on restoring the facilities in the most economical way possible, repairing equipment wherever possible and replacing only the parts that could not be restored. Specific works undertaken by CORAASAN are presented in Table 2 below, which under this subcomponent will retroactively reimburse these unanticipated expenditures incurred as a result ofthe disaster.
Project Costs and Bank Financing
Table 2 - Project Costs
Project Cost by Component and Subcomponent Total
Component 1. Rehabilitation and Risk Management in Water 34.35 Resources Sector (INDRHI)
1.1 Rehabilitation of existing infrastructure 32.11 1.2 Strengthening of Risk Management Systems 2.24
Component 2. Rehabilitation and Risk Management in 33.95 Electricity Sector (CDEEE)
2.1 Rehabilitation of Generation Capacity 15.20 2.2 Rehabilitation ofTransmission Capacity 13.87 2.3 Rehabilitation of Distribution Capacity 4.58 2.4 Strengthening Capacity to Respond to Natural Disasters 0.30
18 Project Cost by Component and Subcomponent Total
Component 3. Rehabilitation of water and sanitation 3.50 infrastructure in Santo Domingo and Santiago 3.1 Retroactive Financing of emergency relief in Santo Domingo 0.70 3.2 Retroactive Financing of emergency rehabilitation works in 2.80 Santiago Unallocated 8.00 Front-end Fee 0.20 Total Project Cost 80.00
Eligibility for processing under OP/BP 8.00
52. The proposed project has been prepared in response to the Government’s February 8, 2008 request (see project files). It will assist the Dominican Republic in the recovery from Tropical Storms Noel and Olga, which caused major adverse social and economic impacts on the country. Specific actions financed under this operation include rebuilding and restoring physical assets in the electricity, irrigation, and water supply and sanitation sectors; restoring essential services in these sectors; and supporting measures to mitigate potential effects of future emergencies. All these objectives are explicitly envisaged as part of the policy framework provided by OPBP 8 .OO. In addition, consistent with this policy, retroactive financing provided under this project in support of early reconstruction activities will not exceed 40 percent ofthe total loan amount.
Consistency with country strategy
53. As an emergency operation, the proposed project was not envisaged in the current Country Assistance Strategy for the Dominican Republic, which was discussed by the Board in May 2005. Nevertheless, the project is fully consistent with both pillars of this strategy, which are to: (1) stabilize the economy, improve competitiveness, and resume economic growth; and (2) increase social equity and improve access to social and basic infrastructure services. Restoring priority infrastructure damaged by Tropical Storms Noel and Olga is a necessary condition for maintaining economic growth, because agricultural production critically depends on the availability of water for irrigation, and the entire economy depends on reliable power supply. The project will improve access to basic services in electricity, drinking water, and sanitation, which suffered following the storms.
D. Appraisal of Project Activities
54. Project preparation and appraisal missions were carried out between November 2007 and February 2008. The Bank team worked closely with concerned central government agencies, including the Ministry of Finance (MoF), the Ministry of Economy, Planning and Development (MEPD), the National Institute of Hydraulic Resources (INDRHI), the Dominican Electricity Commission (CDEEE), and the water and sanitation utilities for the cities of Santiago and Santo Domingo (CORAASAN and CAASD, respectively).
19 Technical Summary:
Institutional
55. As part of the economic recovery effort, the government has embarked on a major decentralization program. Consequently, sectoral institutions have been given greater authority to define and oversee relevant priorities, including those in response to emergencies. For this reason, the MoF and MEPD specifically asked the Bank to implement the project directly through the sectoral agencies. Given the technical and administrative capacity of these agencies, as described below, the team endorsed the Government’s suggestion. The project will be working through two key counterpart agencies: CDEEE in the electricity sector, and INDRHI for water resources. Two municipal drinking water and sanitation agencies will also receive retroactive project support for priority emergency activities: CAASD (Corporacibn de Agua y Alcantarillados de Santo Domingo) and CORAASAN (Corporacibn del Acueducto y Alcantarillado de Santiago). The MOF will be responsible for handling administrative aspects for water and sanitation activities.
Water Resources Management
56. The National Institute of Water Resources (INDRHI) is the central government agency responsible for managing the Dominican Republic’s water resources, as well as for developing and maintaining the country’s irrigation infrastructure. Institutionally, INDRHI is a relatively independent organization located within the Ministry ofEnvironment and Natural Resources (Secretaria de Medio Ambiente y Recursos Naturales). INDRHI’s mandate is to ensure that Dominican water users-municipalities using drinking water, agricultural producers, or industrial enterprises such as electricity generators-have adequate water available to meet their needs. It also promotes the conservation and sustainable use of this resource. In this capacity, the Institute issues titles and licenses authorizing water use and construction in the immediate proximity of water sources, controls the exploration and conservation of groundwater, and constructs, manages, and maintains irrigation and most water management infrastructure, including dams, irrigation intakes and distribution systems, watershed systems, policy development, and resource allocation. Most of the country’s large dam complexes are maintained and operated by INDRHI; however, those complexes used for hydroelectric power generation are operated by CDEEE. A large portion of (untreated) drinking water is supplied through INDRHI facilities. Moreover, agricultural users are dependent on the INDRHI irrigation network for their water resources. Because the supply of water is limited, INDRHI also provides a dispute resolution mechanism in order to balance conflicting demands from agriculture, industry, and consumers of potable water.
57. As the principal manager of the water resources sector, INDHRI has been the object of numerous institutional strengthening and sector programs sponsored by the Bank (since the mid 1990’s) and other funding agencies. Among INDRHI’S responsibilities is watershed management, which has been identified as a critical issue for the country. Through this assistance, INDHRI has organized a strong team of professionals in numerous areas of competency. For example, INDHRI supports its own engineering division which both
20 designs works and develops and evaluates technical contracts for the design and execution of works. INDHRI supports an internal contracting and audit agency which has strong experience in all manner of works and services contracts ranging from those in excess of 100 MillioflSD to small works done by local contractors. With respect to contracting, while the contracts department has ample experience, the scope of work to be managed under the Project may require additional support and manpower to enable their processing in a timely manner.
58. The supervision department maintains a field force of contract inspectors who verify, on behalf of contracts, the quality and execution of contract works. On the technical side, INDHRI maintains scientific support staff and specialized staff in dam safety to execute long-term programs of safety and watershed management. INDHRI is a dependency of the Environmental and Natural Resource Ministry and are the focus ofa new water law rooted in watershed management and land use.
59. During the design of the project, institutional strengthening was discussed and at the request ofINDHRI, several preliminary activities have been developed. These include:
0 Strengthening activities in watershed analysis
Revision of dam safety operations manuals
0 Technical support in the advancement ofthe new water law
0 Review and analysis of the system for maintenance ofirrigation infrasmcture
Development of a public, interagency education program in watershed management
0 Development of a system wide maintenance and management plan for the meteorological early warning system
Electricity
60. The Dominican electricity sector comprises both public and private sector partners. The Dominican Corporation of State Electricity Companies (CDEEE) is the public sector agency charged with supervising and coordinating power utilities totally or partially owned by the state, implementing rural and suburban electrical programs for low-income beneficiaries, and administering electrical supply contracts with independent energy producers. This is done through eight utilities, units, and programs: (1) the Dominican Electrical Transmission Company (ETED), whose mandate is to operate the electrical transmission grid; (2) the Dominican Hydroelectric Generation Company (EGEHID), which is responsible for the operation and maintenance of the country’s hydroelectric facilities and for the commercialization of the energy generated; 3) the National Program for Blackout Reduction (PRA), which helps lower-income families receive electricity services; 4) the Rural and Suburban Electrification Unit (UERS), whose goal is to improve electricity coverage and increase energy supply to rural and suburban communities; 5) the Corporative Unit which coordinates actions among all of CDEEE’s operational units; and (6) the three
21 regional companies-EDEESTE, EDENORTE, and EDESUR-in charge of power distribution.
61. Energy regulation is the responsibility of two state entities: the National Energy Commission is charged with the legal and regulatory oversight of the sector, while the Superintendence of Electricity is responsible for setting prices and tariffs. The private sector participates primarily in electricity generation.
Drinking Water and Sanitation - CAASD and CORAASAN
62. CAASD is a state corporation that provides drinking water and sanitation services for the city of Santo Domingo and its surroundings. CORAASAN is the entity that provides these services for the city of Santiago. Both agencies receive untreated water from surface sources managed by INDRHI and supplemental groundwater supplies. Both agencies have had previous experience in implementing externally financed projects, and CAASD has a dedicated department within its structure that administers IDB financed projects in accordance with established safeguards and fiduciary requirements.
63. It is important to note that all of the works and goods financed under this subcomponent will be funded retroactively, and no new works or purchases are contemplated for CAASD or CORAASAN. The list of goods and activities to be financed under this subcomponent is presented in Annex 1. All of these have been carefully reviewed by the Bank team both from the technical and fiduciary perspective, and found eligible for Bank financing under this project.
Fiduciary
Financial Management
64. The Project will be executed by existing units and systems within the two implementing entities. According to the FM assessment conducted during project preparation, both CDEEE and the INDRHI have solid FM systems, and, with an agreed upon time-bound action plan, to be completed in a reasonable timeframe, both agencies have the potential to develop sufficient FM capacity to manage Bank Projects. Overall Project risk is rated as SUBSTANTIAL. The action plan set forth in Annex 4 calls for the need to incorporate mitigating measures to address identified external and internal risks to support operational performance, while strengthening the internal control environment, and promoting transparency and accountability.
65. An FM assessment was made in accordance with Banks Operational Policies and G~idelines’~.,the objectives of which were to determine: 1) the adequacy of the proposed FM arrangements, 2) the entities’ capacity to properly manage and account for all project proceeds; and 3) the entities’ capacity to produce timely, accurate, and reliable financial reports and statements about the implementation of Project activities for general and the
Operational Policy/ Bank Procedure/ (OPBP) 10.02 and the Manual “Financial Management Practices in World Bank Financed Investment Operations” and Guidelines: Financial Management Aspects ofEmergency Operations ProcessedUnder OPBP 8.00.
22 Bank’s special purposes. The detailed results of, and recommendations from, the assessment are included in Annex 4.
66. As described above, INDRHI and CDEEE will be responsible for Components One and Two, respectively. Activities under Component Three -all of which will be financed retroactively- have been implemented by CAASD and CORAASAN. The MoF will be responsible for Component Three’s fiduciary aspects. Similarly, both INDRHI and CDEEE will be responsible for establishing and managing designated accounts for new (non- retroactive) activities in Components One and Two, respectively. The MoF will be responsible for handling all retroactive payments (including those for all three project components), which will be made into an account oftheir designation.
Procurement
67. Procurement Capacity: An assessment of the capacity of INDRHI and CDEEE to implement procurement actions for the project was carried out in March 2008. The assessment reviewed the organizational structure of the proposed implementing units for Components 1 and 2 ofthe Project, namely the Procurement Unit in INDRHI for Component 1, and the Unidad de Andisis Financier0 y Administrativo (UAFA) in CDEEE, for Component 2. It has been agreed that Component 3 will consist of retroactive financing to the water and sanitation sector through CAASD and CORASAAN, therefore a capacity assessment of those agencies was not deemed necessary. Nevertheless, the contracts to be submitted for retroactive financing will be reviewed by the Bank to confirm their eligibility under the project. A list of approved contracts will be provided to LOADM together with the related Form 3 84s to facilitate processing ofwithdrawal applications.
68. Procurement capacity assessments of INDHRI and CDEEE found the following key issues and risks: (i)limited prior experience in Bank’s procurement within the Procurement Unit; (ii)overall weak procurement environment at the local level; (iii)limited planning and follow-up capacity; and (iii)lack of standard bidding documents, rules and procedures. Under the above considerations the risk of implementation of this project is considered AVERAGE. An action plan has been proposed to strengthen the procurement capacity ofthe implementing agencies. Further information is provided in Annex 5 for Procurement Arrangements.
Safeguards 69. Overall, the Project is expected to have positive social and environmental impacts, as it will restore pre-existing irrigation, electricity and water and sanitation services. Nevertheless, as shown in Table 3, given the Project activities, Project area, and target population, several Bank safeguard policies are considered to be triggered by the Project. Procedures to manage the expected environmental and social impacts are presented in Annex 8. The Operations Manual will include detailed guidelines, procedures and requirements for environmental management under the Project.
23 Table 3 - Safeguard Policies Triggered by the Project
Environmental
70. The project is considered Category “B” partial assessment, and OP 4.01 is triggered. Based on a review of the works proposed, likely environmental impacts are those typically associated with construction activities and are limited to short-term, direct impacts to the work site during actual construction. Positive impacts include the restoration of basic services such as electricity, irrigation, drinking water and sanitation services.
7 1. Works contemplated under this project relate to water resources management and electric generation and distribution. In all cases works are designed to restore damaged services and strengthen specific facilities to improve their performance during future disaster events. Works are of small to medium size and will be executed within existing right-of- ways and at existing service sites. No amplification or augmentation of services is contemplated under this project and design modifications will be included to strengthen the works against future events. For example, transmission lines to be rehabilitated may be moved within existing right-of-ways to reduce their vulnerability. Additional gabion structures may be included to improve the performance of existing structures. Access roads to critical dams will be rehabilitated to reduce vulnerability and to guarantee access to dam sites during emergencies.
72. As no new service capacity is to be created under this project, the long-term consequences will relate to improved resilience of infrastructure to fkture disaster events. No activities have been identified that will promote or induce growth or development beyond that experienced prior to the passage ofthe storms.
73. Given that expected project impacts are related to the direct affects of construction, the project’s Environmental Management Framework calls for the inclusion of environmental management clauses in all project contracts. Additionally, the Borrower is required to perform a Dam Safety Assessment, in accordance with OP 4.37, prior to the disbursement for any subprojects directly involving dams.
24 Social
74. The project is expected to have important positive social impacts, particularly for the poor, given that it will lead to the restoration and, in some cases, improvement of service reliability in areas directly impacted by the storms. These are largely rural areas and contain relatively large percentages of poorer segments of the population. Absent this project, many of these investments would likely have been delayed, leading, in turn, leaving poorer segments ofthe population more vulnerable to future disasters.
75. Community participation and communication is major focus for INDRHI. Irrigation systems are community based and secondary networks are community managed through water user committees. Works selected for inclusion in this project were identified through a process of public meetings with the affected communities, where representatives of each community were directly involved in vetting the list of proposed priority works. During the Bank project preparation mission, team members attended several meetings in the field including one for the region of Barahona where over 300 persons were in attendance. Attendees represented small villages, private farmers, agro-enterprise. The meeting was conducted by the Director of INDHRI and the result was a change in the INDHRI rehabilitation program to accommodate user inputs. In the case of CDEEE, a large share of their participation is in the form of retroactive financing for emergency works. Additional works to be constructed focus on restoration of generation and transmission capacity.
76. The Project will not finance any activity requiring resettlement. Most works will consist of rehabilitation or reconstruction of structures in their current locations. No additional land is needed.
Dam Safety (OP 4.37)
77. Both CDEEE and INDRHI works have components relating to dams. INDRHI is the agency responsible for the maintenance of dams and CDEEE is the entity responsible for the operation of those dams used for the generation of hydroelectric power. Between the two sets of works, INDRHI and CDEEE, several dams have been identified which will be evaluated prior to the execution of works to ensure consistency with OP 4.37. Specifically, the OP calls for the review of the safety of associated dams for “Bank-funded structure; and irrigation or water supply projects that will depend on the storage and operation of an existing dam or a DUC [dam under construction] for their supply of water and could not function ifthe dam failed. ’’
78. To assure compliance with this safeguard, A Bank expert will conduct a review of all affected projects prior to their implementation, in accordance with the policy, and develop an action plan, if necessary, to ensure compliance with the policy.
E. Monitoring Arrangements
79. Project monitoring arrangements have been developed taking into account existing capacity and information systems amongst the implementing agencies. Key indicators and
25 target values, along with more details about the monitoring program, are included in Annex 2.
F. Implementation Arrangements and Financing Plan
80. As detailed below, the project will be implemented by the two sectors hardest hit by the storms, INDRHI and CDEEE, with support from relevant ministries and sector agencies. Project institutional arrangements reflect the Central Government’s decision to delegate responsibility to sectors for the management of related works. Annex 6 provides more detail on implementation arrangements.
8 1. Component One will be implemented by INDRHI, which will be responsible for the technical and fiduciary management of all irrigation activities. INDRHI will process the disbursement requests for all future works, while MOF will be responsible for handling the disbursement requests for all retroactive financing..
82. Component Two will be coordinatedby CDEEE, which will be ultimately responsible for the technical and fiduciary management of all electricity activities with the participation of the utilities included in the project and the support of the agency’s Administrative and Financial Unit (UAFA), as required. CDEEE will process the disbursement requests for all future expenditures and supervise the procurement processes for future works with the direct participation of the participant utilities. Disbursement requests for retroactive expenses will be prepared by MOF. An Operational Manual (under preparation) will define the role and responsibilities of all participants in project implementation.l8
83. Component Three activities-all of which will be financed retroactively-have been implemented by CAASD and CORAASAN, which have the responsibility for technical supervision and contracting. The Secretariat of Finance (MoF) will be responsible for administrative responsibilities associated with the retroactive financing.
Project Coordination and Management
84. Project management will be fully integrated into the institutional structures of INDRHI and CDEEE, which will implement the majority of project activities. The two project coordinators are expected to be those technical staff currently overseeing the disaster response. They will be supported by members of their existing fiduciary units, supplemented when necessary by experienced consultants.
85. Bank supervision requirements are expected to be more intensive than under a non- emergency operation. The supervision strategy will emphasize frequent field supervision, with missions about every three months during the initial implementation period.
86. The project is expected to close on December 31,2012.
CDEEE will be working through the following companies: the Dominican Hydroelectric Generation Company (EGEHID), the Dominican Electrical Transmission Company (ETED), the Northern Electrical Company (EDENORTE), and the Southern Electrical Company (EDESUR).
26 G. Project Risks and Mitigating Measures
Table 4 - Risk Factors and Mitigation Measures Risk Factors Description of Risk Rating Mitigation Measures Rating of of Risk Residual Risk Implementation At the Government’s H The Project will finance S request the project will be the necessary fiduciary implemented through two and technical expertise to agencies, which may delay ensure that both agencies implementation. meet implementation demands. As is the practice for emergency operations, Bank supervision will be more intense than for regular projects. Fiduciary staff in the country office will play a strong role in supervising the project. Moreover, if necessary, project supervision finds will be used to provide hands-on support to the implementing agencies.
The lack ofan overall Given the importance of project coordinator may the reconstruction needs, complicate the Bank’s the Bank will make an supervisory role. extra effort to help facilitate successful implementation.
Institutional Previous Bank experience S The team’s appraisal M in the irrigation, water, and shows that technical sanitation sectors has been project aspects are well mixed. Implementation advanced, as are capacity, especially contracting arrangements. regarding contracting and Project supervision will supervision, has been slow. focus heavily on fiduciary aspects to facilitate rapid implementation of priority works.
27 Table 4 - Risk Factors and Mitigation Measures Risk Factors Description of Risk Rating Mitigation Measures Rating of of Risk Residual Risk Institutional priorities may The project focuses on shift over time, especially carefully vetted and if upcoming elections lead priority works, which are to a change in not likely to lose administration. significance. In addition, the compressed project implementation period is expected to maintain commitment for project activities. Strong Bank supervision will be critical. Fiduciary Project funds may be S Fiduciary procedures, M diverted to uses not directly including no objection on linked to the disaster. large contracts and post review, and strong Bank supervision will focus on these issues.
During the emergency During preparation, the period, procurement team has reviewed every methods may not have contract proposed for yielded the soundest and retroactive financing and most cost-effective result. only included those which meet Bank criteria including those for transparent and efficient management.. Technical Limited emphasis on S The risk ofnot achieving M maintenance and efficiency a perfect solution should could compromise the be weighed against the effectiveness ofproject risk ofnot addressing an interventions. urgent need. Some institutional strengthening activities (e.g., irrigation) will focus on contributing to improved efficiency and maintenance. In other sectors, the Bank’s overall portfolio and country dialogue are better vehicles for addressing these long- term issues.
28 Table 4 - Risk Factors and Mitigation Measures Risk Factors Description of Risk Rating Mitigation Measures Rating of of Risk Residual Risk Project’s emphasis on The project includes close quickly repairing storm- supervision ofproject related damages could works, as well as unintentionally result in financing for technical poor quality works. audits oflarge contracted works to ensure they are ofsufficient quality.
Reputational The Bank may be S The reputational risks M perceived as supporting the associated with the incumbent administration project must be weighed in providing financial against those ofdelaying assistance so close to implementation ofa elections. project which finances legitimate and urgent reconstruction needs.
Given the multiple sources The team is working of external financing for closely with other donors emergency-related works, and carehlly defining there remains a risk that eligibility criteria to some project activities will ensure that the potential receive duplicate financing. for duplication of payments is minimized.
Overall Project Risk H S
87. The project includes a robust supervision plan to mitigate the associated implementation risk. Initially, missions will be conducted every three months and will be comprised of international experts to supervise the irrigation and electricity components, the project’s environmental aspects, monitoring and evaluation, as well as overall project implementation. Additionally, a local engineer will provide supervision support on the ground and to these international technical experts as needed. Local specialists will supervise FM and procurement aspects and will be supported as necessary by DC-based staff.
H. Terms and Conditions for Project Financing
88. There are two conditions for negotiations: (1) Drafts of the Subsidiary Agreements between (i)CDEEE and MOF and (ii)INDRHI and MOF; and (2) Draft Operational Manual.
89. Similarly there are two conditions for effectiveness: (1) Signing of the Subsidiary Agreements and the Inter-Institutional Agreement between INDRHI and CDEEE; and (2) adoption ofthe Operational Manual.
29 90. Lastly, there are two disbursement conditions related to works to be done on dams in Components One and Two. Specifically, the Borrower will submit a satisfactory evaluation report on the safety of dams for any related works.
30 ANNEXES Annex 1: Detailed Description of Project Components Dominican Republic Emergency Recovery and Disaster Management Project
Component 1: Rehabilitation and Risk Management in Water Resources Sector- US$34.35M
The torrential rains in November and December 2007 caused significant flooding which in turn caused major damages to dams, river works, canals, and related infrastructure works in a large number of irrigation and drainage systems. The damages caused major disruptions in the supply of water for irrigated agriculture. In the irrigation sector alone, damages have been quantified at RD$2.2 billion or the equivalent of US$67 million. The Dominican Republic has requested the Bank to provide 100 percent financing for the restoration of irrigation infrastructure works. INDRHI has submitted a portfolio of estimated to cost US$40.5 million as outlined in Table 1.1. Of this estimate, INDRHI is requesting approximately US$8.4 million to be disbursed against eligible expenditures made after the disasters occurred but before Loan effectiveness. The Bank is analyzing this request and is approving allocation of funds based on eligibility. Table 1.1 presents a summary of the activities for which INDHRI is seeking support.
Table 1.1: Requested Allocation of Funds for Water Resources Sector
Procurement Dominican Pesos U.S. Dollars Activities Category Retroactive Emergency Financing RD$284,108,637 $8,480,854 works completed Reconstruction FY2008 RD$571,900,000 $17,071,641 works and technical ass is tance
FY2009 RD$787,000,000 $23,492,537 Reconstruction works
0 bj ective
The main objective of this component is to: (i)rehabilitate the principal irrigation schemes damaged by Tropical Storms Noel and Olga (Subcomponent I), and (ii)support a number of institutional strengthening activities (Subcomponent 11). The project aims at restoring the operation of these raw water supply systems through the reconstruction and stabilization of a wide range of critical physical infrastructure such as water storage facilities, headworks, and canal systems.
31 Damages to the water resource sector were significant and dispersed primarily through the center of the country. Areas most affected were upper watersheds and their downstream receiving areas which suffered from flooding due to excessive rainfall produced by Tropical Storms Noel and Olga.
The Dominican Republic supports an extensive irrigation system in agricultural sectors and relies on surface and groundwater extraction for the generation of potable water. This system also provides raw water for the generation of electricity. Flood damages were dispersed and effects were localized depending on individual watershed characteristics. Effects included the destruction of or damage to irrigation canals, flood control systems, water management and water extraction systems.
This component is divided into three subcomponents that include rehabilitation of infrastructure, risk management capacity building, and repair and augmentation of the hydrological monitoring capacity.
Subcomponent 1. Rehabilitation of existing infrastructure (US $32.11 million)
Damage caused to infrastructure includes destruction of water extraction and distribution systems and damage to agricultural lands due to unusual sediment deposition. Works included in this subcomponent are focused on the reconstruction and rehabilitation of damaged infrastructure and include: (a) the reconstruction and rehabilitation of damaged existing irrigation structures, including: (i)the headworks and main water diversion and conveyance structures; (ii)siphons and flumes; (b) rehabilitation of canal systems including the restoration of canal lining, inlet and escape structures, and canal crossings; (c) the water distribution, control, and drainage Structures in the secondary and tertiary networks; (d) the repair of essential drainage systems; and (e) the removal of sedimentation in canals and drains. The project would also strengthen embankments and rebuild entire sections ofcanals, which cross gullies or run through low-lying areas and were damaged or washed away by the tropical storms. Some access roads to dams and other related key structures would also be repaired under the project. In addition, agricultural lands damaged by accumulations ofrocky sediment and debris will be cleaned and placed back into production. Damaged flood control structures will be repaired or replaced as needed.
INDRHI has prepared a draft plan ofworks for execution during the life of the project. These are preliminary estimates of works to be completed and will require some refinement and prioritization as designs are completed and actual costs become better defined. Works have been divided into three phases: retroactive financing, works planned for FY2008, and works planned for FY2009. A summary ofthe project phasing is presented in Table 1.2.
Retroactive Financing
Under the project, a total of US$8.4 million has been identified for retroactive financing for INDRHI. This is to reimburse emergency works completed under the initial emergency response to the disaster. These works include emergency constructions under projects planned for execution in FY2008. Approximately USD$6.8 1 million of the retroactive active
32 financing request is for works applied toward advancing the FY2008 reconstruction plan, as presented in Table &&. The remaining activities being requested for FY2008 include the completion of an additional US$10.25 million remaining in the FY2008 plan.
FY2008 Works
Approximately US$$17 million has been identified under works to be completed in FY2008. As indicated in the section on retroactive financing, a portion of the programmed works for FY2008 has already been completed. At present, activities will focus on the bidding ofthe 21 works identified for FY2008, using the remaining US$$10.25 million. Works identified for 2008 represent the more urgent constructions included in this project. One ofthe objectives is to substantially complete or stabilize these projects prior to the onset of the 2008 hurricane season. INDRHI has provided a table describing the activities planned which is included in project files.
FY2009 Works
For execution in 2009, approximately US$23 million in works have been identified for execution. This is distributed over 33 individual works projects. Projects in this phase are presented by title only and estimated costs are very preliminary. As estimated costs become more precise and designs are completed, it is highly likely that the actual number ofprojects completed in this phase will be fewer than originally planned based on INDRHI’s prioritization scheme.
Table 1.2: Works Planned Under the Project (amounts will be adjusted according to final allocation)
Works Phase Number of Estimated Total Average Works Cost range fro Works Works cost/us% COSt/uS$ included/uS$
Retroactive Financing** 11 $8,400,000 $807,126 $1,980,781-$15633 1
FY2008 Works Projects** 21 $17,000,000 $739,434 $1,875,000-$62,500.00
($10,250,000 remaining)
FY2009 Works Projects 33 $23,492,537.3 1 $745,265 $2,444,000-$187,500
**Worksfor FY2OO8 began with the initial emergency response to the disaster. Retroactivejinancing includes approximately US37 million in worki already completed against the FY2008plan.
Subcomponent 2. Strengthening of Risk Management Systems (US$2.24 million)
INDRHI is the water resources manager in the Dominican Republic. Among its responsibilities is the evaluation of risks associated with potential disasters such as drought,
33 abnormal rainfall, as well as the promotion of improved water supply through land use and other water resource management methods. Critical to INDRHI but important to all sectors is the ability to define risk zones where recurrent damages may occur. These areas include floodplains, areas susceptible to drought, landslide areas, and other areas that may potentially place life and infrastructure at risk. Users of this information include most Ministries, including Fisheries, Housing, Public Works, Environment, and Agriculture.
To date, INDRHI has engaged the services of a consulting firm to produce water balances for all major watersheds throughout the country. Under a previous contract, INDRHI calibrated one watershed for flood potential with studies completed to map risk areas for flood return periods of up to 50 years.
Apart from flood zone mapping, land use is the single most important factor in managing and enhancing the availability of water resources for the future. Furthermore, land use patterns greatly affect the development of disaster risk potential, ranging from occupation ofhigh-risk areas to loss ofrunoff mitigation through poor watershed management practices.
With the support from a previous Bank project, the Irrigated Land and Watershed Management Project,lg in compliance with the directives set forth under Article 192 of the General Law for the Environment and Natural Resources (Law 64 - 2000), INDRHI produced (January 2003) the proposed Water Law (Anteproyecto - Ley de Aguas) which provides for the integrated management ofwater and watershed resources at national level.
Under this subcomponent, the project will support the institutional development of INDRHI to improve its internal analytical capacity to model watershed behavior and identify watershed attributes contributing to increased risks associated with the water sector. Technical assistance support will also be provided to assist INDRHI with the advancement of the proposed water law through the adoption process.
Similarly, under this subcomponent a series of monitoring stations capturing river flow data and weather observations, which were installed throughout the country after Hurricane Georges, and damaged by TS Olga and Noel will be repaired. Additionally, new monitoring and reporting stations for watershed monitoring and early warning of potential disaster conditions will be installed.
Specifically, this subcomponent will:
0 Engage consulting services to model three watersheds, diagnosing rainfall-runoff behavior and groundwater recharge characteristics through a comprehensive watershed analysis. Using previous studies as a basis, the analysis will identify those characteristics and land use patterns which affect watershed behavior and will include a mapping of the 1-, 5, lo-, 20-, and 50-year floodplain. During the consultancy, the consultant will train INDRHI staff in the analysis and production of land use/land cover information coupled with soil and topographic data to refine watershed models and develop this analytical capacity within the INDRHI system. l9The US28 million loan was approved on May 2, 1995 and closed in December 2004.
34 Purchase off-the-shelf software compatible with INDRHI’s existing GIS systems to permit watershed risk management modeling.
Provide technical consulting support for an Assessment of Operation and Maintenance Practices in the INDRHI system (see INDHRI Operations and Management Practices below), and assist with revisions to the proposed Water Law as it advances through the approval process.
Provide technical consulting support to revise dam safety management procedures, integrating improved data resulting from watershed studies and improvements to the meteorological early warning system.
Develop an improved digital elevation model at regional scales to permit improved accuracy in watershed modeling and risk abatement. Working scales will be at 1:25,000 and products to be used will be derived from available satellite-based platforms to permit spatial resolutions of 15 meters of less.
Obtain supporting satellite imagery to permit the development of land use and land cover maps at scales of 1:25,000.
Support and develop an interagency working group to improve risk management communication and integrate risk avoidance and risk recovery practices within the activities of the participating agencies. Agencies comprising this workgroup, for example, would include the Ministry of Agriculture, Ministry of Transport, Ministry of Housing, other offices within the Ministry of Environment, and other potential users ofthe information developed.
Develop a public education program with the objective of improving public understanding of water resources management and conservation. This program will focus on the impacts of land use practices and the role of watersheds in maintaining water supplies throughout the Dominican Republic. The program will also address flooding and the factors that contribute to vulnerabilities to flood losses. e Engage the services of a data management consultant to develop a mechanism for the timely sharing of information among the affected ministries to promote the integration of risk and watershed management practices within their respective programs. Support improvements to the existing monitoring system by repairing damaged instrument stations or replacing stations as needed.
Support the installation of additional telemetric hydrological and meteorological motoring stations to improve system resolution.
Engage consulting services to develop a system maintenance program and evaluate maintenance costs and requirements to be used to strengthen the network.
35 Provide equipment required to improve system monitoring and maintenance.
Finance the survey, design, and construction supervision of the works to be restored or rebuilt under the project
Contract firms to execute reconstruction and rehabilitation of all works.
Contract Water User Organizations (WUO) in each irrigation district to clean the smaller irrigation canals.
INDRHI will prepare quarterly reports to be submitted to the Bank on the implementation progress of Emergency Project works during the projected four-year reconstructionhehabilitation period.
Assessment of INDRHI’S Operation and Maintenance Practices
Efficient management practices are key aspects for the successful operation and maintenance (O&M) of existing irrigation systems for which INDRHI has been assigned responsibility. In addition, proper O&M is one of the most important features to mitigate future disasters. There is a clear need in INDRHI to strengthen institutional and financial capacities to achieve more efficient and cost-effective management and implementation of O&M. This needs to be accomplished at various levels: national, provincial, district, project, as well as at the level of water users. As a first step toward the improvement of the current O&M systems, INDHRI has agreed to carry out an in-depth assessment and analysis of a broad range of existing arrangements for O&M under the proposed Bank-supported ERL Project. Consultants will be engaged to assist INDHRI with the implementation of this assessment, which will focus on addressing the following existing main aspects of importance for achieving efficient management and implementation of O&M:
The Government’s policy for O&M ofall levels ofirrigation systems; Organizational arrangements at all administrative levels within INDRHI, including staffing levels, job descriptions and responsibilities, lines of command, and performance incentive programs; Organizational arrangements at the level of water users; Staffing arrangements at all levels within INDHRI, including job descriptions and training programs; Financial management, funding for O&M, accounting and administrative procedures within administrative levels ofINDHRI; O&M rules, regulations, and procedures; Communications systems; The cost of providing water for irrigation, electricity generation, and domestic water supply, and recovery levels from water users; Management Information Systems; Monitoring and Evaluation practices.
36 The existing irrigation O&M practices may be divided into two parts: (i)at main system levels, which include dams, headworks, and main canal systems; and (ii)at the minor canal systems and below.
The findings of this assessment will then be applied to formulate detailed recommendations to improve the current O&M arrangements within INDHRI as well as at the levels of individual irrigation systems and water users. These recommendations would also take into account applicable achievements and findings of the Bank-supported Irrigation Land and Watershed Project, which closed in 2004. In particular, the assessment should analyze the achievements of the Water Users Organizations (WUO) strengthening component, some of which reportedly have been established and are functioning in the Nizao irrigation system.
At least two irrigation systems would be selected to serve as specific examples to illustrate the findings of the assessment. In addition, these two systems would then be used to demonstrate how applying the recommendations of this assessment and translating them into an Action Plan would improve the O&M situation.
The formulation ofrecommendations should focus on the following aspects:
(0 At Main System Level the assessment should identify the need for: (i) organizational changes at all administrative levels; (ii)staffing changes and better defined job descriptions; (iii)enhancement of financial management, accounting, and administrative procedures; (iv) training of staff to improve skills; (v) funding and revenue generation; and (vi) improvement of O&M rules, regulations, and procedures.
(ii) At Minor System Level and below, the assessment should focus on turning over responsibilities for O&M to groups of water users utilizing water supplied from INDRHI-managed supply systems. These groups should be self-financing and should be asked to pay for the water supplied by INDHRI where feasible on a volumetric basis.
The generation ofrevenues from water users should aim to cover:
(i) All operational costs, such as salaries, management fees, electricity for pumping, and office operations;
(ii) The cost ofregular, largely preventive maintenance, including repair and overhaul of equipment and civil works to keep the irrigation infrastructure in good operational condition; and
(iii) Interest and loan repayment costs for the investment made by each project.
The cost of this study is estimated at $90,000. A foreign consultant with hands-on experience in all aspects of O&M of irrigation projects would be contracted for the duration of six
37 months to work together with a local consultant group to carry out this assessment of Operation and Maintenance.
Component 2: Rehabilitation and Risk Management in the Electricity Sector - USS33.95M
Tropical storms Noel and Olga caused significant water and wind damage to the hydroelectric generation, transmission, and distribution infrastructure of the Dominican Republic’s electricity sector. The total cost ofthe rehabilitation and risk management activities proposed to be financed by the project is equivalent to US$33.95 million. Expenditures made after the storms and before Loan effectiveness, eligible for retroactive financing, are estimated at US$8.0 million, while the estimated cost of future rehabilitation projects amounts to US$25.95 million.
Objective
The main objectives of this component are to restore priority electricity infrastructure and make improvements needed in the short term in the areas affected by Tropical Storms Noel and Olga (Subcomponents 2.1’2.2, and 2.3), and to strengthen the sector’s ability to respond to natural disasters and other capacity building activities (Subcomponent 2.4).
Subcomponent 2.1 Rehabilitation of Hydroelectric Generation Facilities (USS15.20 million)
This subcomponent includes the rehabilitation ofthe hydroelectric generation facilities operated by EGEHID that were damaged by the recent tropical storms. It also includes ancillary works (access roads), repair ofdams (Las Barias and Valdesia) ,and rehabilitation ofpower generation plants (Aguacate, Nizao-Najayo, Aniana Vargas, Valdesia, Jiguey, Sabana Yegua, Rio Blanco, Los hones, y Las Barias).
Repairs already made and proposed for retroactive financing amount to US$2.8 million and the estimated cost of future works, including contingencies, to rehabilitate the Aguacate, Nizao-Najayo, and Aniana Vargas power plants amounts to US$15.20 million.
Subcomponent 2.2 Rehabilitation of Electricity Transmission Facilities (USS13.87 million)
This subcomponent includes the rehabilitation ofETED transmission lines. Repairs proposed for retroactive financing amount to US$0.6 million and the estimated cost ofthe future works consisting of the rehabilitation ofthree transmission lines of 69 kV, 15 de Azua-Sabana Yegua , Cruce Cabral-Las Damas , and Sabana Yegua-San Juan, Cruce Cabral-Vicente Noble, and Haina- Galeria Infiltracion CAASD Manoguayabo, with a total length of242 km, amounts to US$13.87 million, including contingencies.
38 Subcomponent 2.3. Rehabilitation of Electricity Distribution Facilities (US$4.58 million)
Rehabilitation works already performed by the distribution companies EdeNorte, and EdeSur, proposed for retroactive financing, amount to US$4.58 million. No future works will be financed by the project under this subcomponent.
Subcomponent 2.4. Capacity Building (US$0.30 million)
The capacity building subcomponent includes: (a) the revision and updating ofthe technical specifications and quality control methods for the acquisition ofmaterials and equipment for power transmission and distribution facilities; (b) the updating ofthe contingency plans in case of severe meteorological occurrences; (c) the strengthening ofthe CDEEE’s procurement capacity; (d) the carrying out ofa technical audit of the works under Part 2 of the Project; and (e) the carrying out ofthe financial audit for Part 2 ofthe Project.. The estimated cost is US$0.30 million.
Table 1.3 is a summary of the estimated cost of Component 2.. .
Table 1.3 Cost of Component 2, Electricity Sector
Retroactive Future CDEEE Financing Projects Total
EGEHID-Hydroelectricity Company 2.81 12.39 15.20 ETED-Transmission Company 0.61 13.26 13.87 EdeNorte-Distribution Company 2.29 0.00 2.29 EdeSur-Distribution Company 2.29 0.00 2.29 Consultants 0.30 0.30 Total 8.00 25.95 33.95
Component 3: Retroactive Financing of Emergency Relief and Urgent Rehabilitation of Water and Sanitation Infrastructure in Santo Domingo and Santiago - US$3.5 M
Tropical Storms Noel and Olga have caused much damage to water supply and sanitation infrastructure in the two largest urban centers of Santo Domingo and Santiago, home to some 913,000 and 750,000 people respectively. The objective ofthis project component is to reimburse extraordinary expenditures incurred by the two cities’ water utility companies as a direct result ofthe storms.
Sub-component 3.1 -RetroactiveJinancing of emergency relief in Santo Doming0 (US$O. 70 million)
39 Prior to the disaster, the Santo Domingo water utility company CAASD (Corporacih del Acueducto y Alcantarillado de Santo Domingo) delivered 388.4 million gallons of water per day. Floods following Tropical Storm Noel destroyed key infrastructure and intempted power supply, leading to an effective collapse ofwater and sanitation services in the capital city. Emergency reconstruction efforts within three days of the disaster allowed the company to partially restore the capacity to about 85 million gallons per day. In order to maintain delivery ofpotable water to the affected population CAASD organized distribution of2,800 gallons of bottled water throughout the city as well as delivered approximately 1 million gallons of drinking water in cistern trucks. Moreover, in order to counteract extraordinarily high levels ofturbidity and contamination in the raw waters following the storms, CAASD was obliged to use in a week the entire annual supply ofchemicals used as part ofwater purification process.
This subcomponent consists ofretroactive financing of emergency spending on water purification chemicals (such as chlorine and aluminum sulfate) used immediately following the storms, as well as extraordinary purchases ofgasoline used for delivering potable water to the affected population in the wake ofthe storms. Breakdown ofthese costs is presented in Table 1.4.
Table 1.4. Emergency related goods purchases by CAASD
Sub-component 3.2 - Retroactive financing of emergency rehabilitation works in Santiago (US$2.80 million)
Santiago did not suffer from Noel to the same extent as Santo Domingo. However the province did sustain serious damage during Tropical Storm Olga. The rainfall caused by the storm has resulted in an unanticipated stress on the Tavera Dam, threatening the lives of thousands of people in Santiago Province. To avoid collapse ofthe dam, it was decided to open all six floodgates, which in turn produced a massive wave ofwater that travelled at high speed along the Yaque Del Norte River, crushing everything in its path. Water supply and sanitation facilities were severely damaged by the wave and resulting floods, with water levels reaching over 5 meters. Rafey wastewater plant, the largest water treatment facility in the city of Santiago, was flooded and covered in mud, damaging all electrical equipment and clogging treatment reservoirs and pumps. Ground floor ofthe local water utility CORAASAN (Corporaci6n del Acueducto y Alcantarillado de Santiago) building was completely washed away by the waters. Pastor water intake facility also sustained heavy damage leading to a loss of35 million ofgallons ofwater daily. In the aftermath ofOlga, CORAASAN moved quickly and effectively to rehabilitate the damaged infrastructure and restore services to the public. Within the first three months after the disaster most ofthe rehabilitation work was completed or well underway. Special emphasis was put on restoring
40 the facilities in the most economical way possible, repairing equipment wherever possible and replacing only the parts that could not be restored.
Specific works undertaken by CORAASAN are presented in Table 1.5 below. Total cost of these activities comes to US$3.4 million, and Subcomponent 3.2 will retroactively reimburse these unanticipated expenditures incurred as a result ofthe disaster.
Table 1.5. Rehabilitation Works Undertaken by COWSAN
Cost (US$ million)
Economic and technical justification of supported investments
In Santo Domingo, emergency actions undertaken by CAASD and supported by the retroactive financing from the Water and Sanitation Component allowed to provide over a million gallons of drinking water to the people cut off from the regular water supply, as well as to ensure acceptable quality ofthe potable water delivered through the part of the network that remained inoperation.
In the case of CORAASAN, investments financed by the project allow for the restoration of two important infrastructure facilities - Pastor water intake and Rafey wastewater treatment facility. Pastor water intake provides 35 million gallons ofraw water daily, which accounts for 28% oftotal consumption in the CORAASAN service area serving 750,000 beneficiaries. Rafey wastewater treatment facility is the largest treatment plant in the Santiago area with the capacity of 1217 liters per second. It accounts for 70% oftotal wastewater treatment capacity, and each day it remains out of service means millions of gallons ofuntreated sewerage discharged into the Yaque Del Norte River, damaging the environment and threatening the health and livelihoods of local inhabitants.
41 Annex 2: Results Framework and Monitoring Dominican Republic Emergency Recovery and Disaster Management Project
Results Framework
Project Development Objective Project Outcome Indicators Use of Outcome Information To (i)restore and strengthen 0 12,000 hectares with 0 To inform the National priority, irrigation, electricity, irrigation services restored Government on the progress water, and sanitation 0 Four dam facilities ofrestoration and infrastructure damaged by rehabilitated with revised reconstruction efforts. Tropical Storms Olga and Noel or operational procedures to 0 To improve response to future at risk of damage from future minimize impacts offuture disasters. storms, and (ii)strengthen disasters MDRHIs and CDEEE’s capacity 0 242 kilometers of for future risk management. transmission lines restored to improved disaster resistant standards 0 200 MW ofhydroelectric generation capacity restored 0 Operation ofSantiago wastewater treatment plant restored Intermediate Outcomes per Intermediate Outcome Use of Intermediate Outcome Component Indicators Monitoring Component 1: Water Resources 6,000 ha of irrigation services 0 To assess effectiveness of Objective: to (i)restore and restored by end ofYear Two physical infrastructure rehabilitate irrigation Operations and Maintenance investments infrastructure in areas affected by study contracted by Year 0 Assess progress in TS Noel and Olga; and (ii) Two. institutional strengthening improve INDRHI’s institutional Revised dam operations measures capacity to prepare for and procedures by end ofYear 0 To improve response to future respond to natural disaster events. Two disasters
Component 2:Electricity At least 90 of242 kilometers 0 To assess effectiveness ofand Objective: to (i)to restore and oftransmission lines restored progress through physical rehabilitate electricity by end ofYear One. infrastructure investments infrastructure in areas affected by At least 200 MW capacity 0 To assess improvements in TS Noel and Olga; and (ii) restored by Year Two. generation capacity and improve the electricity sector’s Decrease in generation and transmission availability due institutional capacity to prepare transmission unavailabiliy (as to rehabilitation for and respond to natural disaster measured by hours out of events service)
Intermediate Outcomes per Intermediate Outcome Use of Intermediate Outcome Component Indicators Monitoring Component 3: Water and 0 Operation ofSantiago 0 To assess effectiveness of Sanitation wastewater treatment plant physical infrastructure Objective: to (i)to restore and restored investments rehabilitate water and sanitation infrastructure in areas affected by TS Noel and Olga
42 I
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Yv1 E Q) ru 0 Q)E M E E 2 0 10 *-’ 5 .L 0 4 El 4
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0 Annex 3. Summary of Estimated Project Costs Dominican Republic Emergency Recovery and Disaster Management Project
Total project cost is equivalent to US$80 million, as indicated in the table below.
As of today, according to the Bank’s analysis ofthe expenditures already made, the following costs are considered eligible for financing under the loan:
- INDRHI 8.40 25.95 I 34.35 - CDEEE 8.00 25.95 I 33.95 - CORAASAN 2.80 2.80
The Borrower’s proposal for allocation ofproject costs includes retroactive financing up to 40% ofproject costs, or US$32 million, as per the table below:
- INDRHI 8.0 23.9 31.9 - CDEEE 8.0 23.9 31.9 - CORAASAN 8.0 8.0 - CAASD 8.0 8.0 - Front-end Fee 0.2 0.2 Total 32.0 48.0 80.00
The Bank will continue reviewing the proposed list ofretroactive expenditures to assess which ones meet the criteria established for financing under the loan (see paragraphs 38 and 39 of main paper), and whether there are US$32 million of eligible retroactive expenditures.
46 Annex 4. Financial Management Arrangements Dominican Republic Emergency Recovery and Disaster Management Project
Executive Summary
This preliminary Financial Management (FM) capacity assessment is performed as part of the preparation process of the Dominican Republic Emergency Recovery Loan (ERL) to support reconstruction and rehabilitation works in the aftermath of the Tropical Storms Noel and Olga that flooded entire locations in the Dominican Republic, Haiti and MCxico in November and December 2007. Preliminary discussions have been held with Borrower’s team, toward defining the FM arrangements under implementing entities, the National Institute for Hydraulic Resources (INDRHI), the Dominican Corporation of State Electric Enterprises (CDEEE), the Ministry of Planning and Development (SEEPYD). The Ministry of Hacienda (MoH) will be responsible for administrative and financial management responsibilities associated with the retroactive payments of the Santo Domingo Water and Sewerage Corporation (CAASD), and the Santiago Water and Sewerage Company (CORAASAN). The evaluation was performed taking into account the World Bank’s (Bank) knowledge of the proposed entities, and Country’s FM arrangements.
The objectives of the assessment were to determine the adequacy of the proposed FM arrangements-mainly in the short term- as well as the capacity of the involved entities to properly manage and account for all Project proceeds and to produce timely, accurate, and reliable financial reports and statements for general and Bank special purposes, in relation to the implementation of Project activities. The assessment was performed in accordance with OP/BP 10.02 and the Manual “Financial Management Practices in World Bank Financed Investment Operations” and Guidelines: Financial Management Aspects of Emergency Operations Processed under OP/BP 8.00.
When defining implementation arrangements, several options were discussed: including having a single line ministry as the coordinator and reporting entity for all project activities, having a coordinating unit within a central agency, or having fiduciary arrangements in all four implementing units. After lengthy discussions the amount of implementing entities was reduced to two: INDRHI and CDEEE will be responsible for Components One and Two, respectively. Activities under Component Three -all of which will be financed retroactively- have been implemented by CAASD and CORAASAN. The MoF will be responsible for Component Three’s fiduciary aspects.
Regarding designated accounts, both INDRHI and CDEEE will be responsible for establishing and managing the accounts for new (non-retroactive) activities in Components One and Two, respectively. The MoF will be responsible for handling all retroactive payments (including those for all three project components), which will be made into an account of their designation.
The Project will be executed by existing units and systems within the two implementing entities. Although the emergency nature of the operation requires immediate response, the necessary FM-related capacity building activities for INDRHI and CDEEE (through their Administrative and Financial Unit, UAFA) will be undertaken within an acceptable timeframe,
47 and are expected to be ready by Project effectiveness. That said, the implementing agencies are considered to have acceptable FM management systems in place. Furthermore, the Project will be supporting the Government’s implementation of a unified FM system, UEPEX, which was developed with Bank support.
It is important to mention that the FM capacity assessment of the CDEEE, the entity that will implement rehabilitation or reconstruction works for the power sector, takes into account the recent capacity management assessment done for the US$42 million Energy Distribution Rehabilitation Project, in final stages ofpreparation.
Overall Conclusion The conclusion is that, within the Country and Project context, the implementing entities with fiduciary responsibilities, INDRHI and CDEEE, need to reinforce their FM capacity to engage in Bank Projects. The FM overall risk rating is substantial. To strengthen the internal control environment, foster transparency and enhance accountability while implementing Project activities, the Project team needs to complete certain risk- mitigating measures defined in a time-bound action plan.
Financial Management Assessment
The following sections summarize the discussions, preliminary assessment, and agreements proposed so far in relation to the FM arrangements to be followed by the implementing units.
To complete the work, key FM and FM related staff were interviewed and available documents on FM systems were desk-reviewed. The audits, FM reports and supervision documents of the Hurricane George Project were taken into account. In addition, the specific activities and circumstances of the Project were factored in to ensure that the entities’ FM systems were commensurate with the needs and the unique nature of the Project. Likewise, the latest PFM analytical and advisory activities (AAA) performed in the DR were considered, along with a review of the PFM reforms that are going on as part of the efforts of the Government of the Dominican Republic (GoDR) to streamline key FM process, i.e. flow offunds.
Risk Assessment and Mitigation
The risk assessment presented below constitutes a summary of the issues considered as of the date of the preliminary capacity assessment. However, it will be required to be updated by appraisal as the definition ofProject-specific interventions and implementing arrangements are further refined.
FM Risks: Country, Project and Entity Level Country Risks Although the GoDR is in the midst of an ambitious FM reform agenda stemming from the legal framework revisions recently implemented for the public sector, in general, FM capacity at the entities’ level needs strengthening. The public sector has a long history ofproblems, with weak institutions, at times, inconsistent policies. Especially worrisome is the ongoing practice
48 to replace key staff whenever there is change in administration that hampers public sector’s ability to attract and retain qualified civil servants.
The GoDR recognizes that there are problems in PFM arrangements and is determined to adapt public finances to international standards. A series of new laws aiming at strengthening the budgeting process2’, improving fiscal performance21, promoting transparency and increasing public accountability22were passed during 2006. These laws are notable steps forward; their expeditious implementation will be critical to achieve intended results. Donors (including the Bank) are supporting efficient and transparent public sector FM and capacity-building for debt management. Weak public institutions and insufficient leadership outside the Executive Power are exacerbated by conflicts of interests that continue to affect day-to-day work in GoDR. Although legal measures contribute to improving the overall performance of the DR PFM, the Country ranks low in the Transparency International Index indicating a moderate level of corruption perception23.The Bank welcomes GoDR FM strengthening efforts. The Financial Sector Technical Assistance Loan is supporting FM initiatives, such as the design of the budget module for projects with external resources (Unidades Ejecutoras de Proyectos Externos - UEPEX), a sub-system of Sistema Integrado de Gestion Financiera (SIGEF).
Despite the above, CDEEE and INDRHI have features in place to comply with its fiduciary responsibility in accordance with the Bank’s minimum standards. Whenever possible the team defined FM arrangements that could take into account the entities’ existing system, where considered adequate, so as to strengthen their implementation. The identified FM risks are considered to be reduced in the Project context given the defined implementation arrangements specified in the sections below. Also, the MoF is interested in leading the implementation of UEPEX in the project context. Consequently, although the Bank/IDB 2005 Country Fiduciary Assessment rated Country fiduciary risk as high, due to the many reforms going on in the FM sector, as highlighted in the joint BaWEuropean Community 2007 report on Public Expenditure and Financial Accountability (PEFA), the team has downgraded the Country risk to substantial.
2o The laws promulgated in November and December 2006 that affect the budgeting process are the Law 498-06 on Public Planning and Investment, the Law 496-06 creating the State Secretariat ofEconomy, Planning and Development, and the Law 423-06 on Organic Budget for the Public Sector. Also the Organic Law on the Public Sector Budget (423-06) promoted a drastic reduction of discretionary spending. The following laws are aiming to have more fiscal discipline: Law on the National Treasury (567-05), Law on Public Credit (6-06), Law on the granting ofautonomy of the General Directorate ofCustoms -DGA (226-06) and the General Directorate ofInternal Taxes -DGII (227-07). 22 Amongst the laws aiming to strengthen FM, transparency and accountability, we can name the Law on Government Procurement and Contracting (449-06), Law on the Financial Management System ofthe State (5- 07), and the Law on the establishment of the Internal Control System (10-07). This last one defined the roll of the General Comptroller’s Office as the internal auditor, and the Chamber ofAccounts, remained as the external auditor and Supreme Audit Institution (SAI) to avoid having duplication of efforts. Also incompatible roles with auditing that the Comptroller General exhibited as the ex-ante approving “libramiento~”was taken out, eliminating an unnecessary and useless step in the flow offunds chain. 23 With a score of 5 out ofa maximum of 10, Dominican Republic ranked 99 out of 179 countries in 2007, same ranking and position scored for 2006.
49 Project Risks
Despite the significance of the identified Country issues, the team does not believe they will directly affect the proposed project. Rather, the project’s FM implementation arrangements including flow of funds, procurement and audits will be compatible with national procedures, but rely on the entities’ procedures and Bank’s requirements which are generally much stronger. The FM staff assigned within the Department of Administration and Finance (DAF) to the implementing units will be either assigned or selected according to TORSdefined in the Operations Manual (OM) and will be trained in the specific project procedures so as to comply with Bank’s policies and procedures. The nature ofthis Project presents significant risks, mainly given that, to respond quickly to the emergency, the Project design includes only the most critical ex ante, simple and streamlined controls, with non critical mitigating measures to be implemented during project implementation. It should also be pointed out that the high level of institutional coordination needed is an additional risk, especially when it is clearly recognized that, generally speaking, the ability to effectively and efficiently coordinate activities is weak in the DR public sector. Consequently, we rate Project risk as substantial. However, the project team will rely more heavily on ex post requirements as additional fiduciary controls and reviews, in line with the FM guidelines for emergency operations (Note l),and expects to implement an intensive supervision strategy. As such, the team anticipates that, when risk-mitigating measures are complete, the risk will be downgraded to moderate.
Entities Risk
Among the risks inherent to the project implementing entities it is notable that none of the implementing entities are currently familiar with Bank procedures. The most recent INDRHI implemented Bank financed Project was closed approximately eight years ago, and the Bank’s last project with CDEEE closed more than a decade ago. Staff turnover due to the civil servant instability limits the capacity to retain institutional memory, and as such, in large part, previous experience with the Bank is irrelevant. Basic legal and institutional frameworks are in place, but may by hampered by political interference and lack of coordination. The implementation of works, dispersed in different provinces, may pose several difficulties and challenges to design procedures for having and adequate use of resources, even though the activities of the Project are not complex, and there will be few units directly handling project funds. Except for the retroactive financing, the project team will rely on ex post controls and reviews. While the project does have two implementing agencies to supervise, the burden on the Bank for monitoring and supervision, verification and oversight mechanisms, i.e. audits, interim financial reports, and others, is considered manageable. The Project implementing entities need to strengthen their capacity regarding FM and FM related systems. Specific measures will be included in the time-bound action and supervision plans. For this reason, entities risks are rated substantial and will be downgraded to moderate once risk-mitigating measures have been completed.
50 Risk Matrix The following matrix summarizes the FM risk assessment for the Project. Risk 2. Condition of Identified Risk Risk 1 Risk Mitigating Measure Incorporated Negotiations, Board or into Project Design Effectiveness INHERENT RISK Country level H See text above on Country risk S Project level S See text above on Project risk M Entities level S See text above on Entities risk M
TORSof key FM and Procurement staff will M all practice in the public sector, be approved by the Bank. TORSfor key staff agreed limits the capacity to attract and by effectiveness. maintain qualified staff. Specific training on Bank processes and On-the-job training by piocedures, including Client Connection. approval. Budgeting, accounting, The desim- and definition ofDrocesses and M information system and procedures in terms of planning, budgeting, Simplified processes and internal control: Current accounting and reporting (including procedures, to be defined accounting is performed by internal control), to properly support the with the Bank in the automated systems. Procedures implementation are to be defined and Operations Manual (OM) adopted to process and record agreed upon with each one ofthe units. by negotiations. commitments, payments and approve budget, including Entities to implement UEPEX in close Implementation should modifications, pose significant coordination with the MoH begin as soon as practical. risks of delays. Internal audits are a common practice, but Project should avoid having unneeded Delegation for approvals auditors perform ex-ante bureaucratic review/approval processes or required under emergency controls, incompatible with the steps with no value added that may cause operations has to be audit function. delays recording Project data, or adjusting formalized before Project the budget, which delay periodic reports. Negotiations. Funds Flow: No major issues The FM staff needs to master how to L are identified in DR current handle DA and Operating accounts. On- Training to key FM staff portfolio. Most ofthe entities the-job training to become familiar with the to be provided by new to Bank procedures. process. approval Financial Reporting: All Specific content ofthe interim financial L implementing entities produce reports will be defmed so as to provide Content and format of financial reports; the periodicity, necessary information for monitoring Interim Financial Reports accuracy and use of these reports purposes (component/subcomponent), and at the Project level was vary among them. they will all be prepared on the basis ofthe defined and agreed upon accounting records. with the Bank by negotiations Auditing: CDEEE is annually The audit TORSwill provide for interim M audited, although reports are visits, including the review ofinternal Audit TORSshould be regularly late. INDRHI is only controls and on-site visits. defined before audited when the Chamber of Effectiveness. Accounts, include them in the Audits will be performed according to Country audit plan. International Standards for Audits (ISAs), An acceptable audit firm performed by an external audit firm selected six month after acceptable to the Bank. effectiveness.
Overall FM Risk M Residual risk rating M Riskl: Risk Rating. Risk2: Residual Risk Rating. Risk afte Mitigation. H - High S Substantial M - Moderate L - Negligible or Low
51 Implementing Entities: INDRHI, CDEEE, CAASD and COWSAN
In accordance with the project’s implementation arrangements, the FM tasks will be undertaken by INDRHI for Component One and CDEEE for Component Two. For Component Three, all retroactive activities will be implemented by CAASD and CORAASAN, with the MoF will be responsible for administrative responsibilities of retroactive payments. Under such arrangements, the following sections describe the proposed FM arrangements for each entity, identifying, as appropriate, the required additional actions.
WB Project Costs and Financing by Implementing Entity (US% million) Implementing Entity Bank Financing (in US%million) 1. rNDRHI 34.35 2 CDEEE 33.95 3. CAASD & CORAASAN (MoF) 3.50 Unallocated 8.00 Front end fee 0.20 Total 80.0
Organization
CDEEE is an autonomous entity created by Law 125-01, promulgated in July 2001. Its enabling regulations were approved in June 2002. Its legal representative is the Executive Vice-president.
INDRHI is an autonomous, decentralized, independent entity, created by Law No. 6 promulgated in September 1965. Its enabling regulations were promulgated by Decree 1558 issued in June 29, 1986.
In 1973, CAASD was set up in the capital Santo Domingo as the first regional water and sewerage company. It is a public service company with autonomous character created by Law 498 on April 13, 1973. It services the city of Santo Domingo and the surrounding Santo Domingo Province.
CORAASAN was created in 1977 by Law 582 to serve as the water and sewer company for Santiago, the second largest city of the Country. It was created as an autonomous public corporation.
52 An organizational chart of the CDEEE, Department of Administration and Finance follows:
Dominican Corporation of State Electric Enterprises (CDEEE)/DAF Organizational Chart
Board
------______-
Executive Vice President
Finance Manager Administrative Manager Administrative Manager
I Budgeting 11 Accounting 11 Treasury 1
Note that the Unit of Administration and Finance (UAFA) is proposed to have a Coordinator General and this Unit will respond directly to the Executive Vice-president
Organizational Chart of the INDR.HI/DAF:
National Institute for Hydraulic Resources (INDRHI)/DAF Organizational Chart
Board
I Deputy Directors 1
Adm, and Finance Acquisitions Management Management
Department of Dep. of Contracts Finance Administration
Department of Dept.of Procurement Administration and Biddings
Department of Human Resources
53 Staffing
As of the time ofthe assessment, the FM units are mostly staffed with and professionals (most of them with no prior experience with Bank procedures) adequately qualified and experienced accountants, although relatively new to the organization. The Department of Administration and Finance (DAF) of the CDEEE is fully staffed and its payroll includes budget and finance specialists, along with internal auditors. INDRHI is also fully staffed with FM and budget specialists and has 27 full-time auditors. Terms of reference for the Financial Manager and Procurement Specialists will be included in the OM. The selection or contractual process will be reviewed and agreed upon by effectiveness to strengthen the fiduciary environment. It is crucial to have fiduciary professionals assigned or selected according to agreed upon qualification and experience and aligned with terms ofreference.
The OMwill define duties, responsibilities, supervision authority and limits of authority for all of the Project officers, managers, and staff. On-the-job training on the proper use of Client Connection, automated systems, and all Project fiduciary aspects will be provided to all fiduciary staff.
Programming and Budget, Accounting, Information Systems and Internal Controls
It is mandatory for all public entities to comply with the Governmental Accounting Standards. However, the accuracy of data and the lack of capital accounting in most of them remains a concern, with more effort needed to use the Governmental account classification. All ministries, departments and agencies must use the automated FM Country system, SIGEF. Nevertheless, none ofthe implementing agencies for this Project have implemented SIGEF and they use commercial automated information systems, instead. CDEEE uses SAP and CDEEE uses ADM21. Transactions are recorded according to the Country code by expense object, account and sub-account, per the Manual for Budgeting Classification of the Public Sector, adhering to the standard classifications standards. It is common to issue quarterly budget reports within a few weeks of the close of the reporting period. The Minister of Hacienda recommends INDRHI and CDEEE to implement UEPEX as soon as possible, a sub-system of SIGEF for projects implemented with donor resources. The team fully supports this recommendation and implementation should begin shortly.
The preparation of the annual program and budget will follow local regulations or any other specific procedure approved. for emergency operations, as appropriate. The following issues will need to be considered in order to allow for an adequate budget control: 1) timely preparation ofprogramming, budget, and procurement plan, establishing a clear relation among them; 2) proper recording of the approved budget in the FM system, not only following Government required classification (partidas por objeto del gasto), but also a classification by Project component and cost category (as needed); and 3) timely recording of commitments, payments, and accruals as needed to allow an adequate budget monitoring and also provide accurate information on Project commitments for programming purposes.
54 The Project would use current Charts of Accounts to be complemented with a more functional classification including Project componentshb-components and cost categories as needed. Project transactions and preparation of financial statements will be done using the automated information system in each one of the involved entities. Specific procedures will be established to ensure integrity and reliability of the information, including timely reconciliation with the budget information.
Flow of Funds and Disbursement Arrangements
Funds would be managed through a process similar to that used for the ongoing Bank-financed Projects. Disbursement methods that may be used will be Reimbursement, Advances and Direct Payments.
Disbursement Methods and Supporting Documentation
DISBURSEMENT METHOD SUPPORTING DOCUMENTATION Disbursed to the borrower Reimbursement: Payments to the borrower for the cost of Statements ofExpenditure; project expenditures. and/or The borrower provides documentation showing that such Records (e.g., invoices, expenditures have been incurred and paid from its own receipts) resources at the time a request for payment is made. It will include retroactive financing up to 40% ofthe loan amount. Advance: Payments to the borrower for the expected cost of No documentation is project expenditures. The borrower subsequently provides required at the time ofthe documentation showing that such expenditures have been request. incurred and paid for from the advance. When reporting on the use of advances, required documentation is the same as for reimbursement. Disbursed to third uarties Direct payment: Payments to a third party (e.g., contractor, Records (e.g., invoices, supplier, consultant) for the cost ofproject expenditures. The receipts). borrower provides documentation showing that such expenditures have been incurred at the time a request for payment to the third party is made.
Retroactive financing: The Bank may reimburse the Borrower, for payments that the Borrower has made from their own resources, before the date of signing of the Legal Agreement for relevant eligible expenses, for an amount up to 40 percent of the loan amount. Such expenditures however, must have been paid in the period between the Government’s declaration of emergency (October 27, 2007) (except for goods under Parts 2 and 3 of the project, as defined in the legal agreement, up to an amount of $8m, which were incurred after June 30,2007) and the date ofLoan Signing (not to exceed 12 months).
55 Each implementing entity, INDRHI and CDEEE will open and maintain separate Designated Accounts (DA) in US dollars at the Central Bank of the DR, and separate Project operating accounts in Dominican pesos (DoP) at the Banco de Reservas, the official public bank, for paying local contractors via a local currency account.
Each DA will have a fixed ceiling, set at a level so as to ensure sufficient liquidity at all times to enable smooth Project implementation. Each implementing entity will document the use of advances using Statements of Expenditure (SOE) andor Records and at the same time request further advances.
The Project will design and document in the Operational Manual detailed procedures for the management of the Bank Accounts, which include acceptable internal controls, as well as procedures for the transfer of resources from the Designated Account to the local currency Project operating account. A flow-chart is included to graph the steps from the moment the funds leave the Bank, until they are reflected in the DA and subsequently in the local currency Project operating account.
Reimbursement requests for Retroactive expenditures under Component One
The Ministry of Finance, using information provided by INDRHI will prepare a single Withdrawal Application with payment to be made to an account specified by the Ministry of Finance. Supporting documentation in the form of Statement of Expenditures (SOEs) will be used to document expenditures for contracts not subject to the Bank’s prior review while records will be submitted as supporting documentation for contracts subject to the Bank’s prior review. These expenditures will be audited as part of the 2007 and 2008 annual INDRHI financial statements.
Reimbursement requests for Retroactive expenditures under Component Two
The Ministry of Finance, using information provided by CDEEE will prepare a single Withdrawal Application with payment to be made to an account specified by the Ministry of Finance. Supporting documentation in the form of Statement of Expenditures (SOEs) will be used to document expenditures for contracts not subject to the Bank’s prior review while records will be submitted as supporting documentation for contracts subject to the Bank’s prior review. These expenditures will be audited as part of the 2007 and 2008 annual CDEEE financial statements.
Reimbursement requests for Retroactive expenditures under Component Three
The Ministry of Finance, using information provided by CORAASAN and CAASD, will prepare a single Withdrawal Application with payment to be made to an account specified by the Ministry of Finance. Supporting documentation in the form of Statement of Expenditures (SOEs) will be used to document expenditures for contracts not subject to the Bank’s prior review while records will be submitted as supporting documentation for contracts subject to the Bank’s prior review. These expenditures will be audited as part of the 2007 and 2008 annual financial statements for CORAASAN and CAASD.
56 Flujograma de Fondas para el Pmyecto de Emergencla Pmcadimlento Actual para Solicltudea de Dasemboisos, tanto para el Avanw iniual, am0 para 'as Repcsmones Penddicas (ver Notas 1-7)
uentas Designadas en si Banco entra y completa un formulano para la Tesoreria Nacional
Cuentas Oprativas del
Natas: 1 La duracion del proceso descnto pedew~ar cuando se cometen errores \ el documento es devuelto ai Iuga de ongen para su correcuon 2 Se pueden presentar dilnciones con el uerre B apermra de cada penodo presupuestano 3 Los aempos ban dsmutuodo siguficanramente como resuitado de la unplementauonde !as nuevab Iewdel sector hanuero vigentes en RD a pnm de enem 200- v a la automanzauon de algnnos procesos, tales Lomo la tnnsferenua bancana en forma electromca, en Iugar de la emsi6n de cheques La nueva legshuon ~h6+nos pasos de control redundantes o dupiicauvos a m~el de mutuciones 4 Cuando la firma auronzada para soiiutud de reembolsos se manuene en la sectond lo mis crrcmna a la ejecuuon se a&a mds el proceso
5 Para las soliutudes de desembolso en US$, el procedmento es el msmo Desde la Cuenta Operauva se procesan 10s pagos, con las autonzaciones correspondmtes 6. Para procesar el cheque al prowedor, las wdades toman entre 5-8 &as laborables entre la sohcitud Y su emsion 7 Para soiicitar pagos directos a proveedores, luego de llenar la sohutud en Client Connecnon 1 ZEPFX, el BXI deposita lrecramente en la cuenta en US$ del Proreedor
In order to extend further flexibility to the Project, the Minimum Application Size will be set at a lower level than normal to allow for payments to third parties.
All records evidencing eligible expenditures must be retained by the entities for at least one year after the Bank has received the final audited financial statement and audit report required in accordance with the Legal Agreement or two years after the Closing Date whichever is later. Such documents must be available to review by external auditors and Bank staff.
57 Allocation of Loan Proceeds
Category Amount of the Loan Percentage of Expenditures to be financed Allocated ( in USD) (1) (a) Works (except as provided in category 1 (b) 29,350,000 100% below), goods (except as provided in category 1 (b) below), consultants services, non-consultant services and Operating Costs under Part 1 of the Project
5,000,000 1 (b) Works and goods under 100% Part 1.1 (c) of the Project
(2) (a) Works (except as 14,674,000 100% provided in category 2 (b) below), consultant services, non- consultant services and Operating Costs under Part 2 of the Project; and
2 (b) works and goods (except as provided in category 2 (c) 15,198,000 100% below) under Part 2.1 (iii)of the Project;
2 (c) goods under Part 2 of the Project 4,078,000 100%
(3) (a) Works under Part 3 of the 2,400,000 100% Project; and
1,100,000 (3) (b) goods under Part 3 of the 100%
58 Project.
(4) Front-end Fee 200,000 (5) Unallocated 8,000,000 TOTAL AMOUNT 80,000,000
Operating costs to be financed include those related to the implementation ofproject activities, such as office supplies, travel and administrative personnel.
Financing Eligibility
As DR financing parameters allow, the Bank will finance 100% of Project expenditures, including recurrent expenditures, local costs, and taxes.
Although no formal counterpart contributions will be required, in-kind contributions will be provided via the use of existing governmental properties and facilities in each one of the entities. In the case CDEEE or INDRHI need additional facilities or equipment for administrative purposes, the entities will use loan proceeds.
WB Project Costs and Financing by Project Component (US$ million) Project Component Bank Financing 1. Water Resources 34.35 2. Electricity 33.95 3. Water and Sanitation 3.50 Unallocated 8.00 Front end fee 0.20 Total 80.00
Financial Reporting
All entities produce a number of internal financial reports. Reporting requirements will be adjusted to those currently in use. The automated systems will be individually evaluated. They need to have the ability to produce information by fund, category, line item and component, with data for the last period, for the preceding period and cumulative. Their current automated systems are flexible and should be able to do it. Otherwise additional tools will be used taking into account the need to comply with reporting requirements. Main financial reports to be submitted to the Bank, by INDRHI and CDEEE will be the annual financial statements and quarterly un-audited Interim Financial Reports (IFRs) or Financial Monitoring Report (FMR). Taking into account the considerations noted in the accounting section, IFRs will be prepared and duly reconciled with information on Client Connection. The IFRs should specify sources and applications of Project resources and a statement of investment by Project component, indicating the current quarter and the accumulated operations against ongoing plans. The specific content and format of the IFRs will be
59 discussed and finalized by appraisal. Those reports would be prepared on a quarterly basis and submitted to the Bank within 45 days ofthe end of each quarter.
The same format ofIFR's will be used for both CDEEE and INDRHI.
Internal Control and Internal Audit
In general, existing internal control system in public entities is ineffective and unable to prevent or detect serious irregularities. In accordance with local regulations, they are subject to the Comptroller General Office to comply with its mandate as the government internal auditor. Nevertheless, this Office does not have the capacity to comply with this mandate and often times the auditors have ex-ante controls, incompatible with the audit function. At CDEEE and INDRHI there are separate Internal Audit Units, divided into operations audit and internal control audit.
Conflicts of interest and lack of segregation of duties occur often. Simplified workflows will be included in the OM basically to reflect the payment processes and procedures for different types of expenditures -consultant services, goods, and workshops- including responsible parties. Internal control mechanisms in terms of authorization and approval, and specific documentation required at each step will also be included in the OM.
Auditing
INDRHI, in accordance with local regulations for all public entities are subject to the Chamber of Accounts for the external audit function. Yet, the Chamber ofAccounts does not have solid capacity to effectively comply with its mandate as Supreme Audit Institution (SAI) and public accounts are not audited annually on a timely basis. The audit work is not comprehensive and ineffective, and few, if any, actions are taken on budget reports and audit findings.
CDEEE is annualy externally audited and this entity uses a private audit firm, although audit reports are regularly late, from 8-1 1 months after the end ofthe audited period.
Provision for annual audit reports on Project financial statements, including management letters, are included in the agreement, and audit reports should be submitted to the Bank within four months of the end of the Borrower's fiscal year, which ends on December 31. Responsibility for preparation of audit reports is as follows: INDRHI will prepare reports related to Component 1 of the Project, CDEEE will prepare those related to Component 2 of the Project, and the Borrower will be responsible for preparing audit reports for retroactive financing under the Component 3 of the Project. In all cases, the audit should be conducted in accordance to International Standards for Audits (ISAs) by an independent audit firm acceptable to the Bank and under terms ofreference approved by the Bank. The scope of work for the audit for Component 1 will include the expenses paid with retroactive financing during the first year for the Component 3.
Audit costs will be financed out of loan proceeds, and selection would follow standard Bank procedures. The scope of the audit in the TORSwill be based on Project-specific requirements
60 and responding, as appropriate, to identified risks. Given the nature of the operation and the proposed arrangements for the preparation of the SOEs, a special opinion on the use of SOEs will be required. Opinions on the DA and on compliance with the loan agreement and applicable laws and regulations will also be required.
Audit Report Schedule Audit Report Periodicity Due Date Project specific financial statements 4 months after the with information for the period, end of each fiscal Annual cumulative, comparative and by source year of funds. Special Opinions Statement of Expenditures Annual 4 months after the Designated Account end of each fiscal . Compliance with Loan year Agreement, OM and applicable Laws and Regulation.
Monitoring Plan
Monitoring of the project financial management will be based on: . Desk reviews of the quarterly interim financial reports and the annual audit reports, for each one ofthe fiduciary entities. On-site monitoring: given the nature of the project and the assessment of the risk, at least two supervision missions should be done per year.
61 Annex 5: Procurement Arrangements
Dominican Republic Emergency Recovery and Disaster Management Project
A. General
Procurement for the proposed project would be carried out in accordance with the World Bank's "Guidelines: Procurement under IBRD Loans and IDA Credits" dated May 2004, and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004, both versions updated in October 2006, and the provisions stipulated in the Financing Agreement. The various items under different expenditure categories are described in general below. For each contract to be financed by the Loan, 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 Borrower and the Bank 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.
Procurement of Works: Works procured under the project will support activities for the rehabilitation of damaged infrastructure to its original operational capacity, for both INDHRI and CDEEE. The works under this component will be executed by INDRHI and CDEEE, and they are mainly related to the reconstruction of assets for water resource management and electricity distribution, transmission and generation. All procurement of works will be done using the Bank's Standard Bidding Documents (SBD) for all International Competitive Bidding (ICB). For National Competitive Bidding (NCB) or Price Comparison (PC) methods, documents agreed with or satisfactory to the Bank will be used. Major civil works could be procured using NCB procedure with international advertisement and the Bank's prior review.
Procurement of Goods: Goods procured under this project would include specialized equipment, and goods to restore, enhance assets for water resource management and electricity distribution, transmission and generation. Procurement of goods will be done using the Bank's SBD for all ICB and LIB procurement. For NCB or Shopping (S) methods, documents agreed with or satisfactory to the Bank will be used. For specialized goods LIB will be the appropriate procedure, subject to a long list of potential suppliers broad enough to assure competitive prices.
Procurement of non-consulting services: The project will include logistics for training activities, installation and of monitoring equipment and other possible services needed to achieve the project objectives. The procurement may follow the provisions of paragraph 3.3 and 3.4 of the Procurement Guidelines and will be carried out using the Bank's SBD for all ICB procurement. For NCB or Shopping (S) methods, documents agreed with or satisfactory to the Bank will be used.
All procurement notices shall be advertised in the project website, the government website, and at least in one local newspaper of national circulation. ICB notices and contract award information shall be advertised in the UN Development Business online (UNDB online) and in
62 the Development Gateway’s dgMarket, in accordance with provisions of paragraph 2.60 of the Procurement Guidelines. Selection of Consultants: Consulting Firms services will be contracted under this project in the following areas of expertise: (i)Technical assistance in both implementing agencies; (ii) Design of assets to be restored; (ii)Impact evaluation studies; (iii)technical, financial and procurement audits. The procurement of consulting firms will be carried out using Bank’s standard Request for Proposals (RFP).
1. Selection of Individual Consultant Services: Individual consultant services will be contracted mostly for Project Management, technical assistance, minor design and technical audit.
A project website, a government website, and a national newspaper shall be used to advertise expressions of interest as the basis for developing short lists of consulting firms and individual consultants, and to publish information on awarded contracts in accordance with provisions of paragraph 2.28 of the Consultants’ Guidelines and as mandated by local legislation. Contracts expected to cost more than $200,000 shall be advertised in the UNDB online and in dgMarket. Short lists of consultants for services estimated to cost less than $200,000 equivalent per contract may be composed entirely ofnational consultants in accordance with the provisions of paragraph 2.7 ofthe Consultant Guidelines.
2. Operating Costs: are related to expenses related to Project Administration, office supplies, travel and administrative personnel in the implementing agencies. These operating costs would be in accordance with the Bank’s Procurement Guidelines, as appropriate. These expenditures would be procured using the implementing agency’s administrative procedures (shopping) and selection ofindividual consultants which should be detailed in the POM.
The requirements, documents, as well as their procurement procedures and thresholds will be outlined in the Operation Manual and included in the Procurement Plan.
Retroactive Financing: the Loan will finance a list of eligible civil works, goods and services contracts carried out by INDRHI, CDEEE, CORASAAN and CAASD between October 29, 2007 and effectiveness, for Categories 1 (a), 2 (b), 1 (b), 2 (a) and 3 (a) of the Project, up to an aggregate amount of $24,000,000 equivalent, In addition, the Loan will finance expenditures made before the date of the Agreement, up to an aggregate amount of $8,000,000 equivalent, for payments made prior to this date but on or after June 30, 2007, for Categories 2 (c) and 3 (b) of the Project The contracts that will be eligible for retroactive financing have been analyzed by the Bank procurement officials and it has been agreed that the procurement rules used are in agreement with the “flexible” Bank procedures for Emergency Operations (e.g. direct contracting, shopping, single sourcing for consultants, Force Account where alternative arrangements are not available). Each institution followed the emergency procedures allowed by the Emergency Decree 627 - 07, which were: direct contracting in most of the cases, there were a few contracts that were extensions of existing contracts and those used the same unit prices as the original contract, and few through price quotations and shopping. The list of contracts submitted by each institution was reviewed by the Bank’s team as well as most ofthe
63 contract documentation submitted to the Bank. Some of the works were inspected and confirmed by each of the technical experts through field visits. The preliminary list of the eligible contracts is in the project files and in Annex 9.
B. Assessment of the agency’s capacity to implement procurement: This section presents: (i)an assessment of the National Institute of Water Resources (Instituto Nacional de Recursos Hidruulicos - INDHRI) as the implementing agency for Component 1, and of the Financial and Administrative Analysis Unit (UAFA) at the Dominican Electricity Commission (CDEEE) as the implementing agency of Component 2 of the Project, and (ii)an action plan to enhance and strengthen the procurement capacity activities ofboth implementing units. The assessment was carried out in March 2008. It reviewed the organizational structure of: (i)the INDHRI’s Procurement Unit (PU) and (ii)the CDEEE’s UAFA to cany out project procurement activities. It also reviewed the interaction between the procurement officers and implementing units within INDHRI and CDEEE. The assessment concluded that one of the institutions has more experience in Bank’s procurement while the other will require hiring an experienced procurement specialist to implement a program of radical improvement in its procurement functions. To ensure proper coordination between the two institutions and effective involvement of their staff in the procurement activities, the project provides for: (i) subsidiary agreements between the Recipient and INDHRI, and the Recipient and CDEEE, as well an inter-institutional agreement between NHRIand CDEEE with respect to the role and responsibilities of INDHRI and CDEEE under the project. These agreements should be executed as a condition of effectiveness of the Loan Agreement (LA); (ii)a project operational manual (POM), detailing the procedures and guidelines for carrying out the project, to be adopted in a manner satisfactory to the Bank, as a condition of effectiveness of the LA; (iii) UAFA under CDEEE to be fully staffed with a procurement specialist; and (iv) INDHRI and CDEEE to establish their procurement monitoring system no later than 90 days after the effectiveness date ofthe LA The National Institute of Hydraulic Resources (INDRHI) is an autonomous agency created by Law No. 6 from September 8, 1965 responsible for overseeing all aspects of irrigation, hydraulic resources and watersheds. It coordinates with CDEEE in all aspects ofwaters related to power generation and with and with INAPA (Instituto Nacional de Agua Potable y Alcantarillado) in respect to water and sanitation.
The CDEEE is an autonomous corporation established in 2001 under Article 138 of the General Electricity Law No. 125-01 of July 26, 2001, as a holding company of several enterprises established in 1997 as part of the so called capitalization of the national power company, the Corporacih Dominicana de Electricidad (CDE) is responsible for generation, transmission and distribution ofelectricity services.
CAASD is the Santo Domingo Water and Sanitation Corporation, created by Law No. 498 from April 13, 1973 as a public autonomous agency with the main objective to elaborate and implement plans for the supply of drinking water, as well as the collection, treatment and disposal ofresidual waters in Santo Domingo and other surrounding areas.
64 CORASAAN is the Santiago Water and Sanitation Corporation, a public autonomous corporation created by Law No. 520 from 1977 that provides water and sanitation for the city of Santiago.
The Project is to be implemented by two institutions INDHRI which will be responsible for the activities related to Component 1, and CDEEE for Component 2. The two institutions will be working independently from one another, but in a closely coordinated manner according to the Inter-Institutional Agreement. The figure below synthesizes the arrangements:
PROJECT PROCUREMENT ARRANGEMENTS
The project’s administrative aspects will be responsibility of two units: INDHRI’s Administrative Unit, and CDEEE’s UNA, whose specific responsibilities and operational
65 procedures will be detailed in the POM. The Project’s manual will describe the flow ofproject coordination processes between the technical and the administrative units inside INDHRI, as well as in CDEEE. The following documents that govern the procurement aspects of the project provide the framework for the manual: (i)Loan Agreement; (ii)Procurement Guidelines; (iii)Consultant Guidelines; (iv) Anti-Corruption Guidelines, (v) Operational Manual; (vi) Procurement Plan, and (vii) Audit provisions (Technical, Procurement and Financial).
Legal Aspects: the Law 340-06 that rules the Public Sector Procurement of Works, Goods, Services, Selection of Consultants and Concessions, was approved in August 2006 and modified later by Law 449-06. This law is the first to comprehensively include all aspects of procurement in the country and attempts to increase competition and transparency by allowing direct contracting only for limited circumstances specifically detailed in the law. As the country has entered into the DR-CAFTA with the United States of America, this law is fully consistent with the procurement provisions of the agreement. The government has continued with the procurement reform by approving Decree No. 490-07 that provides the enabling regulations for the new procurement law and by recently launching the portal “compras dom in icana ”.
Law 340-06 and its modification provide for the following procurement methods: (1) Public Competitive Bidding (national and international); (2) Limited Competitive Bidding; (3) Raffle ofWorks; (4) Direct Contracting; (5) Shopping; (6) Shopping of small goods and services, and (7) Reverse Auction (electronically).
In view of the overall weak procurement environment, all project procurement should be made following Bank Guidelines, bidding documents and agreed procedures
Organization and Staffing: INDHRI and CDEEE through their respective administrative units, whose specific responsibilities and operational procedures will be detailed in the POM, will nominate a procurement specialist under TOR agreed or satisfactory to the Bank, and will confirm at negotiations, the proposed structure at the central and departmental levels to be responsible of the supervision and / or implementation ofprocurement.
The responsibilities for implementing project procurement by the two agencies include: (i), prepare and follow-up the implementation of both Procurement Plans, and to ensure compliance with both sectors technical standards; (ii)ensure the functioning of the Bid Evaluation Committees follow Bank requirements; (iii)establish and keep up-to-date the contract administration system; and (iv) ensure a filing system to keep procurement records is in place in both agencies.
The key issues and risks concerning procurement for implementation of the project have been identified and include: (i)limited prior experience in Bank’s procurement within the Procurement Units; (ii)overall weak procurement environment at the local level; (iii)limited planning and follow-up capacity, including supervision of contracts; and (iii)lack of standard bidding documents, rules and procedures. All of them are reflected in delays in the project implementation.
66 The overall project risk for procurement is AVERAGE. The corrective measures that have been considered or implemented to mitigated the above mentioned risks include: (i) agreements to facilitate the carrying out of the project and ensure clarity in the responsibilities and accountabilities of the different actors (INDHRI and CDEEE); (ii)a POM under preparation, including, inter alia, procurement and contracting procedures, will be adopted as a condition of effectiveness of the LA; (iii)INDHRI and CDEEE to strengthen their procurement unit and CDEEE to contract a senior procurement specialist as a withdrawal condition of the loan proceeds; (iv) close monitoring by the Bank, particularly during the first year of project implementation. The following table presents a detailed plan to mitigate the risks and to improve the agencies implementation capacity. Action Plan
Action By whom By when Bank to review and comment To have MDHRI and CDEEE’s UAFA INDHRI / 90 days after N.0 to TORSfor properly staffed with a procurement CDEEE effectiveness key staff specialist and the structure and functions to supervise / execute procurement Define functions, organization, and Inter-institutional relationship between MDHRI and CDEEE CDEEE 1 effectiveness Agreement To define the procurement work flow INDHRI/ I BY Procurement including responsibilities for approvals and INDHRI/CDEEE effeczness processes and actual timetable (mapping of all steps) functions to be 1 included in POM Prepare a training plan for the staff that will Bank to provide be working on the Project CDEEE effectiveness training in procurement guidelines and procedures Finalize the procurement section ofthe INDHRI / BY Draft of the POM POM, with detailed instructions on: (i) CDEEE effectiveness responsibilities and relationships between the various units involved in project procurement; (ii) individual responsibilities for approval and processing of key procurement actions under the project; (iii) instructions and details ofthe processes and responsibilities for procurement filing system. Prepare a General Procurement Plan (For INDHRI / Negotiations Plan and updating the first 18 months) updating it as CDEEE and during necessary. project implementation Include in the Procurement part of the Loan Bank Negotiations Final Text Agreement: (i) a requirement for the use of standard bidding documents agreed in advance with the Bank and, (ii) all project procurement will be made following Bank Guidelines and agreed procedures Prepare the General Procurement Notice INDHRI / I April 15,2008 Proposed Notice
67 Action By whom By when Bank to review and comment CDEEE Prepare standard bidding documents for INDHRI / NCB, shopping and selection of CDEEE consultants, and standard formats for bid evaluation. To design / include procurement module in INDHRI I By June 15, Draft of the the current project MIS system, to monitor CDEEE proposed system procurement plans, contract implementation and produce reports. Establishment of a procurement filing INDHRI I BY Draft of the system. CDEEE effectiveness proposed system Organize a launch seminar for all project Bank BY Bank to ensure related staff effectiveness fiduciary and technical staff will be available for the launch Ensure that all technical specifications and INDI-IRI / During- Bank to review TS terms ofreference for the rehabilitation of CDEEE implementation and TOR before works take into account not only the initiating bids rehabilitation but also ensure the stability of the structures during future disasters. Include in the bidding documents for all INDHRI I works the obligation for the contractors / CDEEE consultants to prepare guidelines for maintenance plan maintenance ofsaid works. during project
Invitations for all contracts, expressions of mHRI1 interest and contract award will be CDEEE implementation follow the Bank’s advertised through a government and Standard format project web page, and in a local newspaper. For consultant services above $200,000, the call for bids, the expressions ofinterest and contract award information should be also published in the UNDB and dgMarket. Submit to the Bank procurement audit INDHRT / First Technical Report reports carried out by Independent Auditors CDEEE Audit Nov 30, (Technical and Procurement). 2008 for the retroactive contracts. Then submit the Audit report every March 31, starting in 2009
C. Procurement Plan: INDHRI and CDEEE have prepared a procurement plan for project implementation, based on the project existing information and envisaged implementation. These plans were discussed and agreed between the Borrower and the Project Team during Negotiations and are available at INDHRI and CDEEE offices. They will also be available in the project’s database and in the Bank’s external website. The two procurement plans will be updated semi-annually or as required by either the Borrower or the Bank to reflect the actual project implementation needs and improvements in institutional capacity.
68 D. Frequency of Procurement Supervision: In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment of the Implementing Agencies has recommended semi-annually supervision missions, including field visits, to carry out post reviews of procurement actions.
E. Details of the Procurement Arrangements Involving International Competition
1. Goods, Works, and Non Consulting Services
(a) List of contract packages to be procured following ICB, LIB and direct contracting:
12 'I 4 7 8 9
Ref. Contract Estimated Procurement P-Q Domestic Review Expected Comments No. (Description) cost Method Preference by Bank Bid- (yedno) (Prior / Post) Opening Date 1 Specialized 757,576 LIB Prior 06130108 equipment for early warnings - INDHRI 2 Strengthenin 484,848 LIB NIA I NIA Prior 06130i08 g Dam I management maintenance 3. Rehabilitati 3.3 m NCB NIA NiA Prior 0713 1/08 on and maintenance of dams --rI (b) ICB contracts for works estimated to cost above US$3.0 million and ICB and LIB contracts for goods estimated to cost above US$250,000 per contract and all direct contracting will be subject to prior review by the Bank.
69 2. Consulting Services
List ofconsulting assignments with short-list of international firms.
I1 2 3 4 7
Ref. No. Description of Estimate Selection Review Expected Comments Assignment d Method by Bank Proposals cost (Prior / Submissio US% Post) n Date Design of 1.2 m QCBSI Prior 0513 1/08 works Risk 1.06 m QCBSI Prior 09/13/08 management capacity building Design of 257,575 QCBSI Prior 0911 310 8 education and social communication strategy 4 (b) Consultancy services estimated to cost above US $200,000 per contract and all single source selection of consultants (firms) will be subject to prior review by the Bank. Individual consultants services to cost US$50,000 or above per contract or single source, regardless ofthe amount, will be subject to prior review by the Bank.
(c) Short lists composed entirely of national consultants: Short lists of consultants for services estimated to cost less than US $200,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. For specialized services it is recommendable to use international advertisement.
F. THRESHOLDS FOR PROCUREMENT METHODS AND PRIOR REVIEW: Recommended thresholds for use of the procurement methods specified in the legal agreement, and for Bank prior review of procurement actions, are identified in the table below. Specific contracts which are subject to prior review are detailed in the Procurement Plan agreed at negotiations.
70 Expenditure Contract Value Procurement Method Bank Prior Review Category (Threshold) (US%OOO) 1. Works >3,000 ICB I All 3,000>250 <250 FIrrespective of amount 2. Goods and Non
>250 ICB, LIB All I250>50 NCB First two each year <50 Shopping First two each year Irrespective of DC All amount Consultant
>200 QCBS, QBS All <200 QCBS, QBS, CQ, FBS, All TORS. LCS, SS (as per Selection Process Procurement Plan) reviewed twice yearly (Ex Post). All contracts awarded under SSS. Individual
>50 Comparison of 3 CVs in All (including key PIU accordance with Chapter staff) V of the Guidelines IC <5 0 Comparison of 3 CVs in Selection Process accordance with Chapter reviewed twice yearly v ofthe Guidelines IC (EX Post). All contracts I awarded under SSS. Total value of contrac
L= Notes: ICB International Competitive Bidding LIB= Limited Competitive Bidding NCB= National Competitive Bidding DC= Direct Contracting QCBS= Quality-Cost Based Selection QBS=Quality Based Selection FBS=Fixed Budget Selection LCS=Least-Cost Selection CQS=Consultant Qualification Based Selection SSS= Single Source Selection
71 Annex 6: Implementation Arrangements Dominican Republic Emergency Recovery and Disaster Management Project
The project will be implemented by two sectoral agencies, the National Institute of Hydraulic Resources (INDRHI) and the Dominican Electrical Corporation (CDEEE). Component 1 will be implemented by INDRHI. Component 2 will be implemented by CDEEE. Component 3 includes only retroactively financed works, the administrative aspects ofwhich will be managed by MOF. Additional agencies that will provide technical supervision assistance are MOF and MEPD.
Activity Implementation
Component 1
INDRHI will implement Component 1. Overall technical and administrative oversight will be the responsibility ofthe Component Coordinator who will have responsibility for technical supervision ofworks and technical assistance activities, component monitoring and evaluation, as well as preparation ofprogress reports and disbursement requests. The Component Coordinator will work with INDRHI’s technical staff to ensure smooth implementation, and supervise INDRHI’s Procurement Unit, which will handle the component’s fiduciary aspects.
Component 2
CDEEE will implement Component 2. Overall technical and administrative oversight will be the responsibility of the Component Coordinator, who will have responsibility for technical supervision ofworks and technical assistance activities, component monitoring and evaluation, as well as preparation ofprogress reports and disbursement requests. To ensure smooth implementation, the Component Coordinator will work closely with CDEEE’s technical staff (primarily those in CDEEE’s Financial and Administrative Unit -UAFA), and liaise with distribution, transmission, and generation companies (Empresa de Generacih HidroelCctrica Dominicana (EGEHID), Empresa de Transmisi6n ElCctrica Dominicana (ETED), Empresa de Electricidad del Norte (EDENORTE), and Empresa de Electricidad del Sur (EDESUR).
Component 3
CORAASAN and CAASD will be responsible for Component 3, which includes only retroactively financed works. Specifically, procurement and technical supervision of such works in Santiago and Santo Domingo will be the responsibility of COWASAN and CAASD, respectively. Disbursement requests for these works will be made by MOF.
72 Water Resources
The National Institute ofWater Resources, known by its Spanish abbreviation as INDRHI (Instituto Nacional de Recursos Hidricos), is the Central Government agency responsible for managing the Dominican Republic’s water resources and developing and maintaining the country’s irrigation infrastructure. Since 2000, INDRHI has reported to the Ministry of Environment and Natural Resources (Secretaria de Estado de Medio Ambiente y Recursos Naturales). INDRHI’s mandate is to ensure that Dominican water users-drinking water, agricultural producers, and industrial enterprises such as electricity generators-have sufficient amounts ofwater to meet their needs, while at the same time promoting conservation and sustainable use ofwater. In this capacity the Institute issues titles and licenses authorizing water use and construction in the immediate proximity ofwater sources, controls the exploration and conservation ofgroundwater, and constructs, manages, and maintains irrigation infrastructure. Because the supply of water is limited, INDRHI also provides a dispute resolution mechanism in order to balance conflicting demands from agriculture, industry, and consumers ofpotable water.
In practice, the day-to-day management of resources is delegated to 3 1 Water Councils (Juntas de Regantes) representing 90 percent of the irrigated area ofthe country and 85 percent of water users. The Juntas are 28 autonomous agencies representing some 166 local associations ofwater users (see attached table***). They collect user fees and make joint decisions on the use ofthese funds within the general policy and normative guidance provided by INDRHI. INDRHI also ensures regular audits ofthe Juntas’ accounts and oversees their adherence to established rules and procedures.
One of INDRHI’s main institutional counterparts within the Government is the Ministry of Agriculture, which is responsible for a key aspect of watershed management: reforestation and forest management. INDRHI is also part ofthe interagency group responding to natural disasters. Stronger interagency links both in the context ofwatershed management and in terms of improved preparedness for future disasters are crucial for ensuring sustainable water use in the Dominican Republic. The Risk Management Capacity Building subcomponent envisaged under the proposed project will help strengthen institutional links between INDRHI and other agencies, particularly the Ministry ofAgriculture, and facilitate the effective management of watersheds in the future.
Electricitv Sector
The Dominican electricity sector comprises both public and private sector partners. The Dominican Corporation of State Electricity Companies (CDEEE) is the public sector agency charged with supervising and coordinating all electrical companies totally or partially owned by the state, implementing rural and suburban electrical programs for low-income beneficiaries, and administering electrical supply contracts with independent energy producers.
On the public sector side, CDEEE supervises and coordinates eight utilities, units, and programs:
73 The Dominican Electrical Transmission Company (ETED), whose mandate is to operate the electrical transmission system.
0 The Dominican Hydroelectric Generation Company (EGEHID), which is responsible for the operation and maintenance ofthe country’s hydroelectric facilities, as well as the sale of the energy obtained through said facilities. It is also responsible for the study and construction ofnew hydroelectric facilities.
0 The National Program for Reduction of Blackouts (PRA), whic aims to help lower- income people maintain electricity services, through the financing of 75 percent ofthe costs ofenergy to qualifying neighborhoods.
The Rural and Suburban Electrification Unit (UERS) aims to improve electricity coverage and improve energy supply to rural and suburban communities.
0 The Corporative Unit is charged with coordinating actions among all of CDEEE’s operational units (which is home to the UAFA).
The regional electricity distribution companies EDEESTE, EDENORTE, and EDESUR. EDESUR and EDENORTE are completely state-owned, while EDEESTE has 50 percent state ownership.
Energy regulation is the responsibility oftwo state entities. The National Energy Commission is charged with the legal and regulatory oversight ofthe sector, while the Superintendency of Electricity is responsible for setting prices and tariffs. The private sector participates primarily in electricity generation. Of the 20 companies active in this area, 14 are 100 percent privately held, 3 are completely state-owned, and the remaining 3 are jointly held between state and private owners.
74 Annex 7. Project Preparation and Appraisal Team Members Dominican Republic Emergency Recovery and Disaster Management Project
Ann Jeannette Glauber Task Team Leader, Environmental Specialist
Tatiana Proskuryakova Senior Operations Officer
Luis M. Vaca-Soto Consultant-Senior Energy Specialist
Gerald Meier Consultant-Environmental Specialist
Bert Kramer Consultant-Senior Irrigation Engineer
Pedro Antonio Castillo de Castro Consultant-Water and Sanitation Civil Engineer
Maria Lucy Giraldo Senior Procurement Specialist
Fabiola Altimari Counsel
Maritza Rodriguez Financial Management Specialist
Catherine Rojas Procurement Analyst
Miguel Santiago Oliveira Finance Officer
Maricarmen Esquivel Junior Professional Associate, Disaster Risk Management
Nelvia H. Diaz Language Program Assistant
75 Annex 8: Environmental and Social Safeguards Framework Dominican Republic Emergency Recovery and Disaster Management Project
Introduction
The project has been evaluated as Category B, partial assessment given that project activities include the reconstruction and rehabilitation of existing electricity, irrigation and water and sanitation infrastructure that may lead to limited, small-scale environmental impacts. Specifically, through the Project:
Infrastructure will be restored to its original function and service levels.
Infrastructure will be strengthened to improve disaster resistance in their present locations.
Noresettlement or purchase of lands will occur under the project.
Anticipated negative environmental impacts are those common to construction, are limited to the construction site and duration ofthe construction activity, and therefore can be easily managed and mitigated using good engineering practices.
Positive impacts result from the restoration of critical services related to irrigation, drinking water and electricity.
Description of Activities
The activities contemplated under this project are largely related to the reconstruction and strengthening ofphysical infrastructure damaged during the floods resulting from the passage ofTropical Storms Noel and Olga. Activities fall into three basic categories:
1. Retroactive financing of emergency works already completed.
2. Rehabilitation and reconstruction works to be executed over a four-year period.
3. Institutional strengthening and data development.
Three sectors are participating in the project. These are the Drinking,Water and Sanitation Sector, Water Resources Management, and the Electric Sector. Institutional relationships and activity descriptions are presented in table 8.1.
76 Table 8.1 Project Summary
Institution Sector Project Support Activities Repair and reconstruction ofdamaged water INDRHI Water Retroactive Financing resources and irrigation infrastructure Resources Reconstruction Works Repair ofdamaged monitoring equipment
Institutional Operations, Safety, and resource management Strengthening support studies and training
CDEEE Electricity Retroactive Financing Repair ofdamaged power generating structures and transmission lines Reconstruction Works Rehabilitation oftransmission lines within existing right-of-ways to reduce disaster vulnerability
Institutional Improvements in preparedness and capacity to react Strengthening to potential disaster events
CAASD Drinking 100% Retroactive Repair ofcritical infrastructure such as pumps, Water and Financing electric service panels, filter elements etc. Sanitation Reimbursement for extraordinary consumption of water treatment chemicals during the emergency
CORASAAN Drinking 100% Retroactive Repair ofcritical infrastructure such as pumps, Water and Financing electric service panels, filter elements etc. Sanitation
Works in the Water Resources sector will be managed by INDRHI which is an institute under the Secretario de Medio Ambiente y Recursos Naturales. Works consist of the reopening of water intakes, repair of water and irrigation canals, replacement ofdefensive structures - primarily gabion walls and retroactively financed emergency repairs designed to restore critical services. In many cases these repairs are ofa temporary nature to be rehabilitated during the project.
Works in the Electricity sector will be managed by CDEEE and involve the repair of generating facilities and repair and rehabilitation ofdamaged or at risk transmission and distribution lines. In some cases, transmission lines will be moved within their existing right- of-way to improve their disaster resistance.
Common to both sectors are dams. Damages to be repaired include the replacement ofwater control gates, repair and stabilization offacility access roads and minor repairs to ancillary infrastructure such as access roads.
77 Support for Drinking Water and Sanitation is 100% retroactive financing. Funds will reimburse the costs associated with emergency repairs and replenishment ofwater treatment chemicals consumed during the emergency. All activities to be reimbursed have been screened for eligibility under the ERL and no additional works are included under the project.
Environmental Compliance
The Dominican Republic has a strong program for environmental management and compliance. This program is executed under law 64-00 (largely supported by a previous Bank project) through the Secretario de Medio Ambiente y Recursos Naturales. All agencies and private enterprises are required to comply with national environmental law which includes a detailed environmental assessment procedure developed as required under Law 64-00 Environmental Management and Natural Resources articles 9, 17, 18, 38 a1 48, 107, 109, 150 y 175; and regulations for the system of permits and licenses approved by the Secretary of Environment. This system generally meets or exceeds Bank policy requirements including the requirement for an environmental management plan for construction works.
In the case ofthe works identified in this project, the project’s environmental management framework consists of environmental clauses included in all contracts to deal with the direct impacts ofconstruction. Ofcourse, should the works portfolio in the project change, new works will be screened by the Bank and the implementing agencies as required to determine the potential environmental compliance requirements, in accordance with Bank safeguards. Upon the Bank’s request, the Borrower will be responsible for implementing any necessary safeguard compliance provisions.
Finally, INDRHI will be the focus ofthe majority ofworks anticipated under the project. As an agency organized within the Secretario de Medio Ambiente y Recursos Naturales, INDRHI activities are specifically approved by the Secretario in the course ofnormal business.
Environmental Management Plan
Most ofthe works included in the program include a design component. While most works currently included are consistent with Category C classification, designs are not yet finalized, and the scope ofworks may change resulting in more significant (Category B) impacts. Both INDHRI and CDEEE will submit project packages to the Bank for review, together with the results oftheir environmental screening as required under national law. Based on this exchange, the Bank will review projects for environmental compliance and recommend any additional requirements as needed.
Under the project, CDEEE and INDHRI will manage the environmental compliance for their respective works. Contracts for works will include specific environmental compliance clauses designed to deal with issues related to typical construction activities. In both cases, CDEEE and INDHRI provide site clerks that regularly inspect contractor activities. These inspections will include environmental compliance and will be submitted in accordance with the schedule provided in the specific contracts. These activities will become part of the contract management record which is the basis for contractor payment within the respective agencies.
78 These environmental clauses will be included in the project operations manual together with guidance for their application.
Social issues and Resettlement
All activities planned under this project relate to the restoration ofbasic critical services in electricity, irrigation and drinking water. There will be no purchase ofland or resettlement associated with the project.
Safety of Dams: OP 4.37
In the water resources and electricity sector, several ofthe works planned are associated with dams or structures dependent on upstream dams. While no new dam construction is included in the project, OP/BP 4.37 - Safety ofDams requires a review ofthe dams associated with the project.
Both CDEEE and INDRHI works included in the project have components related to dams. INDRHI is the agency responsible for the maintenance of dams and CDEEE is the entity responsible for the operation ofthose dams used for the generation of hydroelectric power. Between the works included within the Project for both INDRHI and CDEEE, several dams have been identified which must be evaluated prior to the execution ofworks.
A cursory review ofthe dams involved was made during the assessment mission. Inspection procedures and record keeping were discussed. Based on this review, there appears to be a system in place for the management of dams that is compliant with internationally accepted standards and practices.
Compliance and Safety
To comply with the requirements of OP/BP 4.37, a Bank specialist in dam safety will conduct a safety review of all dams associated with the project prior to the execution ofany related works. The specialist will review inspection procedures and records and will conduct site visits to verify safety practices. Findings resulting from this review will be provided to the Bank and the responsible agency for action. The disbursement ofworks related to dams is contingent upon the Borrower’s submittal to the Bank ofan acceptable dam safety assessment and action plan.
In addition to the requirements provided in OP/BP 4.37, the project will include an institutional strengthening element directly related to the operation of dams, which would be financed through the project. As part of this task, a consultant will be engaged to review and revise dam safety operating procedures. The purpose ofthe review is to update dam operations manuals taking into account the availability of improved data from the meteorological early warning network, newly calculated water balances, and changes in land use and rainfalllrunoff characteristics.
79 Annex 9: Preliminary List of Identified Works Dominican Republic Emergency Recovery and Disaster Management Project
Preliminary List of Activities
2 I Rehab Obra de Toma Canal Jimani. I i2009
de Riego de Constanza 60,000,000.00 1,79 1,044.78 10 Rehabilitacidn Canal Boba 2009 25,000,000.00 746,268.66 11 Rehabilitacidn del Canal El Llano 2009 de Elias Piiia 20,000,000.00 597,014.93 12 Rehabilitacidn Rinconcito Macasias 2009 23,000,000.00 686,567.16 13 Rehab Sistema de Bombeo de Elias 2009 Piiia 35,000,000.00 1,044,776.12 14 Rehabilitacidn Sistema la Gina de 2009 Miches 12,000,000.00 358,208.96 15 Rehabilitacidn Dique Arroyo Rico I 2009 1 Miches 1 15,000,000.00 447,761.19 1 16 1 Canal La Cana- La Guarana. Cotui 1 1 2009 35,000,000.00 1,044,776.12 17 Rehab. Canal Jima- camu 2009 22,000,000.00 656,716.42 18 Rehab canal Vicente Noble 2009 i 5,000,000.00 746,26 8.66
19 Rehab. Sistema Cambronal- Las ~ 2009 I Lajitas I 20,000,000.00 597,014.93 1 20 1 Rehab, Sistema Saladillo, Cabral 1 12009 1 25,000,000.00 746,268.66 I 21 1 Rehab. Canales Yuboa IY 11. Bonas 1 12009 I 21,000,000.00 626,865.67 I 22 1 Rehab Lat 25.53 y Flume Los I 2009 I Caceres Yaque de Norte. I 25,000,000.00 746,268.66 I
80 23 iehab. Sistema de Riego El Llano- 2009 3ocanasta, incluyendo el Reservorio 24 iehab. Maicillo -Aleman, Nisibon 2009 20,000,000.00 597,O 14.93 25 Rehab. Sist de riego San Rafael del 2009 wma 25,000,000.00 746,268.66 26 Rehab. Canal Haina 2009 20,000,000.00 597.014.93 27 Rehab Dique canal Los Hormigos 2009 20,000,000.00 597,014.93 28 Rehab. Canal Yabacao, Monte Plata 2009 10,000,000.00 298,507.46 29 Rehabilitacion canal Las Charcas, 2009 Canal Mijo, San Juan. 23,000,000.00 686,567.16 30 Rehabilitacion Toma del Canal 2009 Mijo, San Juan 6,000,000.00 179,104.48 31 Rehab. Del sistema de Compuertas 2009 del Canal El Guayabo de Aglipo I1 20,000,000.00 597,014.93 32 Rehabilitacion Sistema de Riego de 2009 Esperanza, Distrito de Riego Alto 10,000,000.00 298,507.46 Yaque 33 Rehabilitacion de Sistema de Riego 2009 de Canales de Tamayo 15,000,000.00 447,761.19 34 Rehabilitacion del Sistema Canal 2009 Nizao -Najayo 25,000,000.00 746,268.66 Sub-total 2009 23,492,537.3 I No. Activity Estimated Cost RD% Estimated Cost US$ 1 Rehabilitacion de las obras de 2008 cabecera, del canal Marcos A. 60,000,000.00 1,791,044.78 Cabral. Zona de Bani, incluyendo la reconstruccion del sifon principal del canal Nizao Yajayo, y del mismo canal principal Nizao- Najayo. San Cristobal. (Ficha A01- Noel.DR) 2 Presa de Villarpando, protecci6n 2008 con gaviones y enrocado, aguas 15,000,000.00 447,76 1.19 abajo. Azua. (Ficha A02- Noel.DR) 3 Rehabilitacibn del Canal Unificador 2008 Ocoa. Reconstrucci6n y obras del 8,000,000.00 238,805.97 dique, toma, desarenador, y el canal de conducci6n 1.50 kilometros en tramos y puntos especificos. Incluyendo las compuertas de la toma y el desarenador. San Jose de Ocoa. (Ficha A03- Xoel.DR)
4 Reconstruccion de 10s sistemas de i 15,000,000.00., 2008 riego del area de Padre Las Casas: 447.76 1.19 Padre Las Casas Iy 11, y El Jobo. Padre Las Casas. Azua. (Ficha A04- Noel.DR)
81 5 Canal Yuna - Bejucal. 10,000,000.00 2008 Reconstruccion del flume, 298,507.46 rehabilitacion del canal en varios puntos del tramo de 1SO kms.Construccion A1 cantarillas en el dren Los Arroyos, gaviones de proteccion en adecuacion rio Yuna. Bonao. (Ficha A05- Noel.DR). Rehabilitacion Yuna - Caiiabon. 2008 Reconstruccion de la obra de toma 2,000,000.00 59,701.49 en el rio Yuna, reconstruccion del canal principal en varios puntos, adecuacion del rio Yuna, Construccion ai cantarillas en el dren Los Arroyos, gaviones de proteccion en adecuacion rio Yuna. Bonao. (Ficha A06- Noel.DR). Encauzamiento del rio Yuna: 2008 Construccion de muros de 23,000,000.00 686,567.16 proteccion en gaviones a ambos lados del rio Yuna, Los Naranjos a LaReforma. Sector Bajo Yuna. Maria Trinidad Sanchez. (Ficha A07- T\ioel.DR). Reconstrucci6n Obras Conexas a1 15,000,000.00 2008 Dique Neumitico, Aglipo 11, el 447,76 1.19 canal principal, y las protecciones aguas abajo del dique. Bajo Yuna. Maria Trinidad Sanchez. (Ficha A08- Noel.DR). Rehabilitacion del Dique de 25,000,000.00 2008 Barracote, el Bajo Yuna. (Ficha 746,268.66 A09- NoeLDR). 10 Construcci6n diques longitudinales 2008 de tierra para contencibn de 23,000,000.00 686,567.16 inundaciones en el rio Yuna en el tramo Villa Riva - Arenoso. (Ficha All- Noel.DR). 11 Reconstruccion de 10s canales 2008 Matayaya , Zona de Las Matas de 5,800,000.00 173,134.33 Farfan. (Ficha A12- Noel.DR). 12 Rehabilitacion del Canal Caiio- 2008 Trujillo, reconstruccion del Dique 45,000,000.00 1,343,283.58 de Mena-Peiion. (Ficha A14- Noel.DR). 13 Rehabilitacion del Dique de Santana 2008 y rehabilitacion del Canal 30,000,000.00 895,522.39 Aguacatico, Reconstruccion de 7.00 km de Drenajes para mejoramiento del area baja del rio Yaque del Sur. (Ficha A15- Noel.DR).
82 14 Rehabilitacion del Canal Cristobal: 2008 Rehabilitacion del Canal Principal 35,500,000.00 1,059,701.49 en varios tramos, reconstruccion de la obra de toma y su sistema de compuertas de regulacion, protecciones aguas arriba y aguas debajo de la toma, rehabilitacion de bermas, y rehabilitacion de las obras de arte del canal. Bahoruco. (Ficha A16- Noel.DR). 15 Mantenimiento de presas. Nacional: 2008 I.Batimetrias en 10s embalses: 32,000,000.00 955,223.88 Sabana Yegua, Jiguey, Valdesia, Hatillo, Tavera - Bao. 1I.Trabajo de mantenimiento e instrumentacion drenes en Tavera, Jiguey, Aguacate, Valdesia, Hatillo, Rincon, Sabana Yegua, Mijo, Sabaneta, KOBlanco, Arroyon, Tireito. 111. Instructivos. Actualizacion de 10s manuales de operacion de las presas Sabana Yegua, Tavera - Bao, Hatillo, Valdesia, Moncion. (Ficha A18- Noel.DR). 16 Reparaciones en la Presa de 2008 Taveras, estabilizacion, de erosion 12,000,000.00 358,208.96 a1 pie del vertedero de servicio. Mitigacion de efectos causados por la tormenta Olga. 17 2008
18 Presa de Maguaca, Rehabilitacion y 2008 complernentacion obra de descarga 40,000,000.00 1,194,029.85 de emergencia, protecciones en el cause del rio, estabilizaciones de taludes y otras obras menores, Etapa I,2008. 19 Presa de Jiguey. estabilizacion del 2008 deslizamiento activo, en la ladera 26,100,000.00 779,104.48 del estribo izquierdo de la presa. San Jose de Ocoa. (Ficha A19- Noel.DR). 20 Construccion del Dique Santa Rita 2008 sobre el Yaque del Norte, Provincia 14,000,000.00 417,910.45 Monte Cristi, 21 Canal principal YSLXA, 2008 rehabilitacion del tramo de Los 50,000,000.00 1,492,537.3 1 Cantiles. Tramo Villarpando- Los toros. Limpieza del canal que se lleno de sedimentos, reconstruccion de revestimiento, y obras adicionales en gaviones para la estabilizacion del talud hacia el rio Yaque del Sur. ha.(Ficha A20- Noel.DR).
83 Rehabilitacion sistema de drenaje 1008 superficial y subterraneo, para 10,500,000.00 3 13,432.84 proteger de inundaciones a1 poblado de Villa Vasquez Rehabilitacion y ampliacion de la 2008 Red de Estaciones 25,000,000.00 746,268.66 Hidroclimaticas,Telemetricas, de Alerta Temprana del INDRHI. Nacional. (Ficha B01- Noel.DR). Proyecto de Creacion de 2008 Capacidades de Gestion de Riesgos 24,000,000.00 7 16,417.9 1 Contra de Inundaciones y Sistema de Informacion. Incluyendo Consultorias, Entrenamiento, Adquisiciones de equipos de informatica y software. (Ficha B02- Noel.DRl Proyecto de Educacion y 10,000,000.00 2008 Comunicacion Social sobre Riesgos 298,507.46 en relacion a las Inundaciones. (Ficha B03- Noel.DR). Fortalecimiento de la gestion del 2008 mantenimiento de presa: 16,000,000.00 477.61 1.94 Adquisicion de cuatro (4) pick up 4wd doble cabina, cinco (5) computadoras Desk top, un escaner de plano y una copidora de plano, seis acelerografos, cuatro sismografo, GPS, equipos varios de instrumentacion de presa, entrenamiento en seguridad de mesa. Sub-total 2008 57 1,900,000.00 17,071,641.79 2009 and 2008 Activity Estimated Cost RD$ Estimated Cost R&Q US$ Rehabilitacion de Obra Toma Caiio 39,249,325.50 Retro Trujillo y Adecuacion Cauce No 1,171,621.66 Yaque del Sur, Provincia de Barahona. Reconstruccion Sifon Canal Nizao 23,697,097.89 Retro Najayo, Provincia Peravia. 707,376.06 Reconstruccion de Roturas Muro del 9,380,36 1.45 Retro EoYuna, Provincia Duarte (en 280,010.79 Platanito). Proteccion y Adecuacion Rio Juma 12,969,738.88 Retro y Construction del Flume en Canal 387,156.38 Yuna - Bejucal, Provincia Monseiior Nouel. Rehabilitacion del Canal Nizao - 5,018,618.60 Retro Najayo en Tramos Discontinuos, 149,809.51 Provincia de San Cristobal.
84 5 Rehabilitacion e Incremento de la 32,295,906.96 Retro Captacion de Agua del Canal San 964,056.92 Ramon, Provincia de Bahoruco. 7 Construccion Sistema Drenaje 10,48 1,122.42 Retro Superficial Y y SubterraneO en 312,869.33 Para Proteger el Pueblo de Villa Vasquez, Provincia de Montecristi. 8 Rehabilitacion Canal Aguacatico y 27,189,404.47 Retro Dique Santana, Provincia Bahoruco. 8 11,624.0 1 9 Reconstrucci6n Dique Santa Rita, 15,930,090.44 Retro sobre el Rio Yaque del Norte, 475,525.09 Provincia de Montecristi. 10 Rehabilitacion canal de Conduccion 63,385,017.35 Retro Ysura, Addendum No. 1 Contrato 1,892,090.07 10375 , Provincia deAzua. 11 Reparacion de dafios causados por la 44,511,953.86 Retro Tomenta Noel Area de Influencia 1,328,715.04 Sistema de Riego YSURA, Addendum KO.2, Contrato 10375,
Retro
Retro
1 Retro 786,920.00 23,490.15 2 Reconstruccibn descarga agua Retro tratada 388,517.95 11,597.55 3 Linea desfogue Retro 449,275.78 13,411.22 4 Construccion almacen polimetro y Retro cal 612,925.55 18,296.29 Construccion oficina de Retro mantenimiento electromecanico 41 1,187.40 12.274.25 Construcci6n laboratorio Rafey Retro 1,407,796.00 42,023.76 Tanque para el derrame de Retro combustible 61,828.62 1,845.63 8 Reparacidn de 10s registros sifones Retro 3,326,705.93 99,304.65 9 Deposito de tubos Retro 455,597.23 13,599.92 10 Deposito de materiales Retro
___ 1,335,638.84 39,869.82 11 Acceso a 10s almacenes, subestacion Retro electrica, lechos de secados, EBAR 5,734,174.91 171,169.4(1 y almacen de polimetro y cal 12 Sustitucion de materiales en lechos de secados 3,18 1,335.05 94,965.23
~ 13 Drenaje pluvial
85 5,730,056.20 I 171,046.45 Linea para la descarga lixiviada Retro b- 278,797.93 8,322.33 Construccion y reparacion verja Retro perirnetral 7,956,458.86 237,506.23 Colocacion y reparacion de baranda Retro 2,427,951.36 72,476.16 Acceso perimetral area tuberia Retro Flowtite 7,899,952.77 235,819.49 Reparaci6n y sustitucion panel de Retro control 5,000,000.00 149,253.73 Rehabilitacion edificaciones Retro 860,974.18 25,700.72 Retro 48,939,526.49 1,460,881.39 Limpieza inicial y retiro de Retro escombro 5,602,850.00 167,249.25 Reconstruccih edificaciones Retro (almacen, provisional atenci6n a1 4,377,968.68 130,685.63 cliente, tesoreria) Reconstruccion linea telefhica y Retro primer nivel edificio principal 13,354,120.00 398,630.45 Compra y reparacih de aires Retro acondicionados 1,460,000.00 43,582.09 Reconstruccion micro medicion Retro reconexion y area frontal 2,505,578.94 74,793.40 Reconstruccih area depone, Retro 16 servicio a1 cliente y tesoreria 65,163.16 1,945.17 17 Reparacion de ascensor Retro Reconstrucci6n counter, closet Retro puerta baiio 1er nivel edificio 3,043,983.80 90,865.19 administrativo Pintura planta 25 MGD Retro 595.52
~ Limpieza de sedimentares retirada Retro de arena parte posterior area 16,625.00 496.27 exterior. frontal 11 Reconstruccion canaleta y Retro acondicionamiento area verde, taller 203,082.80 6,062.17 automotriz Material de mina arrastrado por el Retro agua, remoci6n de material y 267,710.00 7,991.34 alquiler de retro pequeiia (limpieza del sotano y otros) Presupuesto rehabilitacion oficina Retro rGIP Desagiie pluvial y muro perimetral, Retro P-TD Anexo oficina dibujo Retro I l5 22035 I.1 1 6,592.57 Cafeteria Retro 2,441,703.22 72,886.66 117 Instalacion cable de data Retro
86 1 2,943,067.23 87,852.75 18 Central telefhica Retro 1 5,058,399.64 150,997.00 19 Equipos informatica Retro 1,143,643.60 34,138.61 20 Mobiliario y materiales de oficina Retro 956,787.35 28,560.82 21 Recuperacih motores y bombas Retro 948,139.53 28,302.67 22 Equipos de proteccion y Retro herramientas utilizadas en limpieza 8 10,804.50 24,203.12 de escombro Materiales utilizados para Retro reestablecer la energia y servicios 735,867.3 1 21,966.19 1 I 23 sanitario ler nivel edificio
EGHlD Rdro
87 Gastos de alimentos y transporte 4,411.76 Retro para emergencia por aislamiento del personal en las centrales Aguacate, Valdesia y Jiguey, causado por la tomenta Noel Gastos de alimentos y transporte por 882.35 Retro aislamiento de la Presa Jiguey 3 Gastos para Abrir Finca para que 10s 176.47 Retro vehiculos de EGEHID puedan accesar a la Central Valdesia 4 Confeccion de 20 letreros adhesivos 163.24 Retro para ser utilizados en plan de contingencia 5 Compra de combustible, acarreo, 4,288.24 Retro comida para la rehabilitacion de central Aguacate indundada por la tomenta 6 Compra de 200 rollos de alambre 63,705.88 Retro para reparar acceso a la Central Aguacate Gaviones Compra de 2 Motobombas diesel 22.293.58 Retro para limpieza y rehabilitacion Central Aguacate Compra de un transfonnador para 946.28 Retro us0 del campamento Central Jiguey 9 Compra de 1000 galones de Gasoil 3,492.65 Retro para Central Valdesia 10 Trabajos recoleccion de piedras, 44,117.65 Retro recuperar 40 metros de Central Aguacate 11 Gastos de materiales alimentos y 735.29 Retro transporte del personal reparacion Central Jiguey 12 Alquiler de equipos pesados 44,807.1 1 Retro utilizados en las diferentes centrales 13 1era. Cubicacion para la 7,726.09 Retro construccion de la verja de Valdesia 14 Compra de materiales electricos y 1.195.02 Retro de limpieza para us0 de la Central aguacate 15 Compra de 1000 galones de gasoil 3,881.03 Retro para us0 de equipos pesados en la reconstruccion de la carretera Los Cacaos 16 Compra de 1000 galones de gasoil 3,593.24 Retro para us0 de equipos pesados en la reconstruccion de la carretera Los Cacaos v Valdesia 17 Compra de 1050 galones de gasoil 3,869.71 Retro para us0 de equipos pesados en la reconstruccion de Aguacate 18 Compra de 1200 galones de gasoil 4,588.50 Retro para us0 de la Central Valdesia
88 19 Construccion de muro de proteccion 17,896.93 ietro en gaviones Central Aguacate, tras el paso de Noel 20 Construccion de muro de proteccion 18,153.15 ietro en gaviones Central Aguacate, tras el paso de Noel 21 Compra de 50 galones de solvente 1,912.04 Xetro electric0 secado rapido Central I Valdesia 22 Gastos para la vacunacion central 235.41 Xetro aguacate 23 Alquiler de planta electrica Central 5,747.29 Setro Aguacate 24 Alquiler de planta electrica Central 5,928.46 Retro Aguacate 25 Alquiler de retropala por 32 horas, 931.76 Retro limpieza y canalizacion de la central Rincon de Yuboa (Aniana Vargas), la cual quedo sedimentada por causa
26 Compra de Materiales y Equipos 11,484.84 Retro
ElecGocs, Central Aguacate ~ 27 Alquiler de retropala por 88 horas, 2,562.35 Retro limpieza vias de accesos a la central rio blanco, valvulas, maiposas, presas Tireito y Arroyon que sufrieron dermmbes por la Tomenta Noel 28 Trabajos de limpieza rejillas Central 3 1,860.00 Retro Valdesia 29 Anticipo Rehabilitacion Carretera 690,577.34 Retro LaColonia 10s Cacaos Central Jiguey 30 Construccion de la casa de Retro operadores Central Aguacate 33,728.73 31 HIDROCONSULTORES JR Y Retro ASOCIADOS 868,569.08 32 MkVTENIMIENTO Retro INDUSTRIALES Y MARITIMOS 153,499.32 RIO HAINA 33 REHABILITACIONCARRETERA 1 Retro LOS QUEMADOS CTRAL RIO 614,631.89 BLANCO, TRAS EL PASO DE NOEL I 34 25% AVTICIPO, Retro REHABILITACIONY MANTTO. 64,3 19.01 CTRAL, AGUACATE, TRAS EL I PASO DE XOEL 35 REHABILITACIONDE LA Retro MINICENTRAL 38,523.21 HIDROELECTRICA NIZAO NAJAYO, TRAS EL PASO DE
89 ALQUILER RETROPALA POR 90 Retro HORAS, LIMPIEZA VIAS DE 2,620.59 ACCESOS, A LA CTRAL. RIO BLANCO, VALWLAS MARIPOSAS, PRESAS TIREITO Y ARROY ON QUE SbTRIERON DERRUMBES POR LA TORMENTA NOEL COMPRA DE 1000 GALONES DE I Retro GASOIL, EQUIPOS PESADOS 3,847.50
CONTRATO NO. 156-2007 Retro ALQUILER DE EQUIPOS 11,788.24 PESADOS, UTILIZADOS EN EL CONTRAEMBALSE LAS BARIAS CTRAL. VALDESIA CONTRATO 143-227, Retro TRANSPORTE DE EQUIPOS 8,205.88 PESADOS, PARA SER UTILIZADOS EN LAS DIFERENTES CTRALES HIDROELECTRICAS. A TRANSPORTE DE 400 Retro I 40 METROS CUB. DE PIEDRA, Y 7,062.35 CONFECCION GAVIONES, CTRAL. AGUACATE A TRANSPORTE DE 400 Retro METROS CliB. DE PIEDRA, Y 3,536.47 CONFECCION GAVIONES, CTRAL. AGUACATE ALOUILER DE PLANTA Retro ELECTRICA, CTRAL, I 5,928.46 /1: AGUACATE I Sub-total 2.8 18.424.3s Retro Retro !-Em--- I Construccion e instalacibn de la 52,654.36 Retro Tone No. 134 LT. 138 kv Pizanete
82,151.34 Retro las Torres Nos. 30,31,y 32 L.T. 138 kv Itabo - 27 de febrero Construction Muros de Contencibn 28,43 1.OC Retro Muros de Gaviones a las tones no. 13 y 28 de la L.T. 138 kv- 15 de
6,476.21 Retro LProteccion Torre No 83, L.T. 138 kv 375,167.0: Retro 19,749.41 Retro Pago de Dietas y viaticos a1 personal 45,548.31 Retro de campo 610,177.8: Retro Retro
90 Contrataciones para cubrir 2,290,000.00 Retro necesidades surgidas luego del paso
'~ de las Tormentas Noel y Olga
EDESUR
Total Funtre Activities C'DEEE 1 Future SUBCOMPONENTE 2.1 I I I REHABILITACION DE LA GENERACION HIDROELECTRICA Rehabiiitacion Central Aguscate - Goods Rehabilitacion Central Aguacate 2.1.5 Adquisicion de Banco de 50,000.00 Bateria 2.1.6 Adquisicion de sistema de 18,000.00 telefonia interna RTU Y Radio 2.1.7 Adquisicion de equipo de 40,000.00 generacion diesel de emergencia para la Central 2.1.13 Reposicion sistema scada 5,000.00 Nizao Najayo 2.1.16 Reposicion sistema Scada 5,000.00 Aniana Vargas Rehabilitacion Presa Barias 2.1 .x Reemplazo y reparacion de 1,400,000.00 compuertas Total Goods 1.5 18,000.00 Consulting Services I 2. Contratacion de firma auditora
91 M orb\ SUBCO.MPONESTE 2.1 REHABILITACION DE LA -’ GENERAcION HiDROELECTRIC A REHABILITACION CENTRAL I AGUACATE 2.1.1 Obras civiles rehabilitacion 1,380,000.00 1 Central Aguacate I 2.1.2 Construccibn de la Casa de 100,000.00 I Operadores prbximo a la Central 2.1.3 Trabajos Mecanicos 2,333,000.00 2.1.4 Trabajos Electricos 1,922,000.00 Subtotal Central Aguacate 5,735,000.00 REHABILITACION CONTRAEMBALSE DE LAS BARIAS Y PRESA DE VALDESIA 2.1.8 Obras civiles 3,165,000.00 2.1.9 Reposicion del sistema de 50,000.00 alumbrado 2.1.10 Trabajos mecanicos 930,000.00 Subtotal Barias y Presa de 4,145,000.00 Valdesia REHABILITACION CENTRAL NIZAO-NAJAYO 2.1.1 1 Rehabilitaeion camino de 165,000.00 acceso y obras civiles 2.1.12 Trabaios ElCctricos 585,000.00 1 Subtotal Central Nizao-Naiavo REHABILITACION CENTRAL 1 I I ANANA VARGAS 2.1.15 Rehabilitacion camino de 240,000.00 1 acceso y obras civiles Subtotal Aniana Vargas 240.000.00 1
REHABILITACION DE EMPRESA DE TRAMMISION ELECTRICA 2.2.1 L.T.-69 kV 15 de Azua - 3,368,596.29 Sabana Yegua I 2.2.2L.T.-69 kV Cruce Cabral - Las 1 4,170,131.09.. 1 Damas 2.2.3 L.T.-69 kV Sabana Yegua - 1 I 1,892,416.07 I San Juan I---- 2.2.4 L.T.-69 kV Cruce Cabral- 2,031,737.18 I
92 Vicente Noble 2.2.5 L.T.-69 kV Haina - Galeria 451,603.50 Infiltracion CAASD Manoguayabo TOTAL SUBCOMPONENTE 2.2 11,914,484.13 TOTAL WORKS 22,784,484.13 Total future 24,602,484.13
93 Annex 10: Disaster Prevention and Response in the Dominican Republic Dominican Republic Emergency Recovery and Disaster Management Project
Policy on Disaster Prevention and Response in the DR
National System for Prevention, Mitigation, and Response to Natural Disasters
Following Hurricane Georges in 1998, the National System for Prevention, Mitigation, and Response to Natural Disasters was created under Law 147-02, with the objective of reducing risk, preventing disasters, and responding effectively to emergencies. The system’s main role is to coordinate the different entities at the central and local levels, and to develop and update the National Risk Management Plan and the National Emergency Plan, whose aims are to guide prevention and response operations. The system is operated by the National Council for Disaster Prevention, Mitigation and Response (Consejo Nacional de Prevencidn, Mitigacidn y Respuesta ante Desastres), which is chaired by the President and comprises the heads of all relevant government agencies and sectors, including representatives from the private sector and civil society (Figure A10.1). The council meets at least twice a year to discuss the relevant policies for disaster prevention, mitigation, and response
In addition to the National System, the law creates the National Integrated Information System, the National Fund for Prevention, Mitigation, and Response, Budget Allocation for Risk Management, and a Specific Plan of Action for Disaster Response and Recovery.
Disaster Risk Management and Emergency Response Plans
National Risk Management Plan The National Risk Management Plan is the instrument that defines the objectives, strategy, and programs through which the institutional activities for risk prevention and mitigation, and preparation for response, are oriented. The goal of the plan is to strengthen inter-institutional capacity for risk management, assign responsibilities to the different institutions in the public sector and civil society, and improve key areas such as early warning systems.
National Emergency Plan The National Emergency Plan is the instrument that defines the institutional procedures to prepare for, react, and respond to disasters. It particularly refers to the operational procedures that need to be foreseen and activated in the institutions in an individual and collective manner, and dictates the flow of information, warnings, and resources from the affected areas or from the Centro de Operaciones de Emergencia (COE). The objective is to define the inter- institutional structure and responsibilities of these entities.
The Technical Committee is in charge of developing and updating both plans, through the National Emergency Commission (Comisidn Nacional de Emergencia - CNE), to be approved by the Consejo, by national decree. According to the law, all relevant public and private area agencies should collaborate respectively, designating a representative who assumes responsibility.
94 Regional, Provincial, and Municipal Plan Local authorities are responsible for formulating and agreeing with the relevant committees at the local level on a Local Risk Management Plan and a Local Emergency Plan, in accordance with the other plans at the local and national levels.
During Emergencies
During emergencies, the Council, together with CNE, which is chaired by the Executive Director of the Civil Defense Agency and is itself formed by the agencies represented in the Council, discuss the emergency situation with the President and with the other institutional representatives and advise on the specific response strategy. Consequently, the President, who is the principal decision-maker during emergencies, issues any relevant decree that is considered appropriate for the situation. Direct emergency response is largely the responsibility of the Civil Defense Agency with support from the Red Cross. Longer-term disaster recovery and mitigation are the responsibilities of each sectoral agency.
Implementation of the policy on disaster prevention and response
Although the country has a sound legal framework which provides the elements and basis for an integrated disaster management strategy, the implementation of this strategy is still evolving. Further efforts are needed to improve coordination and capacity, disaster prevention and mitigation investments, information sharing among responsible agencies, and harmonization of methodologies and approaches used for local disaster risk assessments and management plans. Such weaknesses were evident in the response to TS Olga and Noel, which yielded a relatively high number of deaths and the damage. Both the IDB-supported US$Sm disaster management project, which is currently awaiting ratification by Congress, and ongoing support from the UN, are specifically targeting several ofthe capacity weaknesses
95 Figure A1O.l: National System for Prevention, Mitigation, and Response to Natural Disasters created under Law 147-02
Risk Management Policy Framework in the Dominican Republic - Law 147-02 National
- SEEPyD - Secretaria de Estado de las Fuenas Armadas (FF.AA.) - Policia Nacional (PN) - Secretaria de Estado del Medio Ambiente y Recursos Naturales - President of the Republic, or hisher (SEMAREF) delegate @resides) - Secretaria de Estado de Obras Emergency Pdblicas y Comunicaciones Information - State Secretary from: FFAA., SEEPYD, SEMAREF, SEOP, SEIP, (SEOP) System - Secretaria de Education (SEE) Relaciones Exteriores, SEIC, - Secretaria de Estado de Agricultura; SEE; Industria y Comercio (SEIC) _____ ~~~~ - Secretary from SESPAS, General - Secretaria de Salud hiblica y National Council for Disaster Prevention, Mitigation and Responq Secretary from LMD Asistencia Social (SESPAS) - Secretaria de Estado de Interior National Emergency Commiss - Director ofINVI; ISU; INDFU-II y Policia (SEIP) Civil Defense @C) - General Manager of CDE - Oficina Nacional de Defensa Civil (DC) - Trustee from Ayuntamiento del - Cruz Roja Dominicana (CRD) Distrito Nacional de Santo Domingo; - Instituto Nacional de Recursos Hidraulicos (INDRHI); - Executive Director of DC; - Instituto Nacional de Agua Departamento Aeroportuario; Potable y Alcantarillados Instituto Nacional de Estabilizaci6n de (INAPA); Precios; - Instituto Nacional de la - Director ofONM, CRD Vivienda (INVI); - Chief ofCBSD - Corporacion Dominicana de - General Director of the Oficina Electricidad (CDE); I Metropolitana de Servicios de - Direccion General de Mineria I Autobuses; Mineria (DGM) - Liga Municipal Dominicana - Three representatives from Civil designated by the president (LMD); FF. AA. Society, - Cuerpo de Bomberos de Santo SEMAREF D.G.A. Domingo (CMSD) SESPAS INDRHI - Corporacion de Acueductos y SEOP INAPA Alcantarillados de Santo SEE’ INVI Domingo (CAASD); D.C. INDOTEL - Ayuntamiento del Distrito PN CDE Nacional de Santo Domingo C.B.S.D. LMD (ADN); C.R.D. ADN - Oficina Nacional de D.G.A ONM Meteorologia (ONM) D.G.M. ISU - Instituto Sismologico Universitario (ISU)
96 Annex 11: Documents in Project File Dominican Republic Emergency Recovery and Disaster Management Project
Government Documents
Evoluci6n del Impacto de la Tormenta Noel en la Republica Dominicana. Comisi6n Econ6mica para AmCrica Latina y el Caribe (ECLACEEPAL).
Evaluaci6n del Impacto de la Tormenta Olga en la Republica Dominicana. Secretaria de Estado de Economia, Planificacih y Desarrollo. Sub-secretaria de Planificaci6n. A 6 de febrero de 2008.
Perfiles de proyectos. Evoluci6n del Impacto de la Tormenta Noel en la Republica Dominicana. Comisi6n Econ6mica para America Latina y el Caribe (ECLACKEPAL).
Dec. No. 627-07. Leonel Fernandez, Presidente de la Republica. Declara la existencia de una situaci6n de emergencia nacional por el paso de la Tormenta Noel.
Dec. No. 678-07. Leonel Fernandez, Presidente de la Rep6blica. Prorroga la vigencia del Decreto No. 627-07, de fecha 3 1 de octubre de 2007, por el termino de 30 dias a partir de la fecha.
Plan de Rehabilitacibn de Obras por 10s Efectos de la Tormenta Noel. Partes I.11, y 111. INDRHI
Proyectos de Recuperaci6n del Sector Electrico tras el Paso de la Tormenta Noel. Corporation Dominicana de Empresas Electricas Estatales (CDEEE). Unidad de Analisis Financiero y Administrativo (UAFA).
Proyectos de Recuperaci6n del Sector Elictrico tras el Paso de la Tormenta Olga. Corporacidn Dominicana de Empresas ElCctricas Estatales (CDEEE). Unidad de Analisis Financiero y Administrativo (UAFA).
Informe General No. 26, Evento: Tormenta Tropical Noel. 12 de Noviembre de 2007
Specialized / International Sources
Situation Report 8 - Tropical Storm Noel, Dominican Republic. November 16 2007. OCHA
Emergency Appeal MDR49002, Operations Update 1, International Federation of Red Cross and Red Crescent Societies, 14 December 2007
World Bank Documents
Ayuda Memoria. Misi6n de Preparaci6n del Proyecto, 12 a1 17 de noviembre de 2007. Ayuda Memoria. Misi6n de Preparaci6n del Proyecto, 19 a1 26 de febrero de 2008
97 Annex 12: Statement of Loans and Credits Dominican Republic Emergency Recovery and Disaster Management Project
Difference between expected and actual Original Amount in US$ Millions disbursements ProjectID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev’d PO90010 2008 DO Social Sectors Investment Program 19.40 0.00 0.00 0.00 0.00 19.40 2.93 0.00 PO96605 2006 DO Youth Development Project 25.00 0.00 0.00 0.00 0.00 24.94 12.95 0.00 PO82712 2005 DO Power Sector Program Loan 150.00 0.00 0.00 0.00 0.00 50.00 50.00 0.00 PO78838 2004 DO Financial Sector Technical Assistance 12.50 0.00 0.00 0.00 0.00 10.28 10.28 0.00 PO82715 2004 DO Power Sector TA Project 7.30 0.00 0.00 0.00 0.00 4.65 3.15 1.46 PO54937 2003 DO-EARLY CHILDHOOD EDUCATION 42.00 0.00 0.00 0.00 0.00 24.96 22.61 0.00 PROJECT PO76802 2003 DO-Health Reform Support (APL) 30.00 0.00 0.00 0.00 0.00 17.63 17.63 6.13 Total: 286.20 0.00 0.00 0.00 0.00 151.86 119.55 7.59
STATEMENT OF IFC’s Held and Disbursed Portfolio In Millions of US Dollars
Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic. 2003 ADOPEM 0.00 1.oo 0.00 0.00 0.00 0.00 0.00 0.00 2005 Aerodom 45.00 0.00 0.00 15.00 45.00 0.00 0.00 15.00 2006 Aerodom 17.00 0.00 0.00 0.00 16.50 0.00 0.00 0.00 2003 Banco BHD 10.00 0.00 10.00 0.00 0.00 0.00 10.00 0.00 2005 Basic Energy 22.65 0.00 0.00 0.00 10.22 0.00 0.00 0.00 2002 CII 28.50 0.00 0.00 0.00 28.50 0.00 0.00 0.00 2004 Domicem S.A. 24.00 0.00 0.00 24.00 24.00 0.00 0.00 24.00 2005 Domicem S.A. 3.75 0.00 0.00 3.75 3.75 0.00 0.00 3.75 1998 Flamenco Bavaro 1.18 0.00 7.70 4.07 1.18 0.00 7.70 4.07 2004 GN~OM 20.00 0.00 0.00 0.00 12.95 0.00 0.00 0.00 2000 Hospiten 1.00 0.00 0.00 0.60 1.00 0.00 0.00 0.60 2005 Occidental Hotel 0.00 0.00 20.00 0.00 0.00 0.00 20.00 0.00 2005 Occidom 8.89 0.00 0.00 35.56 8.89 0.00 0.00 35.56 2002 OrangeDominicana 23.29 0.00 15.00 33.27 23.29 0.00 15.00 33.27 2000 Rica 5.63 0.00 3.00 0.00 5.63 0.00 3.00 0.00 Total portfolio: 210.89 1.00 55.70 116.25 180.91 0.00 55.70 116.25
98 Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic. 2003 ADOPEM 0.00 0.00 0.00 0.00 Total pending commitment: 0.00 0.00 0.00 0.00
99 Annex 13. Country at a Glance Dominican Republic Emergency Recovery and Disaster Management Project
Lath Lower- POVERTY and SOCIAL Dominican America middle- Development diamond. ReDubiic S Carib. income 2006 Population, mid-par (miliions) 9.6 556 2276 Life exgectancy GNlpercapita (Atlas method, US$) 2,90 4.767 2,037 GNI(Atias method, US$ billions) 28.0 2,650 4,635 1 Average annual growth, 2000-06 T Population (77 16 13 0.9 Laborforca (%) 3.6 21 14 Most recent estimate (latest year available, 2000-06) capita enrollment Poverty (%of population belo wnationalpoveiiyline) 42 Urban population (%of to tal populatio n) 66 78 47 Life ewectancyat birth (years) Ea 73 71 1 Infant mortality (per lOOOlive births) 26 26 31 Child malnutrition phot chiidrenunder5) 5 0 Access to improvedwatersource Access to an improvedwatersource (%ofpopulation) 95 91 81 Literacy(%ofpopulation age by 87 90 89 Gross primaryenroilment (%of school-age population) 10 m m -Dominican Republic Male 15 PO 17 _.- Lomsr-middle-incomegroup Female 111 m M I KEY ECONOMIC RATiOS and LONG-TERM TRENDS 1996 1 1986 2005 2006 Economic ratios' GDP (US$ billions) 6.1 '42 29 5 316 Gross capital formationIGDP P.8 8.9 89 20.1 Trade Exparts of goods and serviceslGDP 24.4 30.7 340 33.5 Gross domestic savings/GDP n.7 14.1 62 5.5 Gross national savingslGDP 6.4 6.8 89 19.6 T Current account baiancelGDP -3.4 -15 -16 -2.5 Capital Interest paynents/GDP 3.0 11 09 savings formation Total debt1GDP 602 30.4 25 1 Total debt service/egorts 24.7 62 69 Present vaiueof debt/GDP 24 9 Present vaiueof debt/erparts 57 0 Indebtedness 1986-96 1896-06 2005 2006 2006-10 (average ennualgmwth) GDP 3.1 52 9.3 0.7 5.9 -Do minican Republic GDP per capita U 3.4 7.6 9.0 52 __ Lowr-middle-income group Ewrtsof goods and services 8.5 3.5 6.1 5.8 4.4
STRUCTURE of the ECONOMY
100 1986 1996 2005 2006 IGrowth of capital and GDP (%) (%of GDPJ I20 7 Agriculture 174 P8 a.4 P1 Industry 237 324 25.5 262 Manufacturing a7 85 s.3 140 Services 590 548 62.1 6*8 Household finel consumpt,on expenditure 022 79.7 14.0 i79 Genera gov't final consumption expenditure 1.1 62 9.8 67 Imports ofgoods andservices 33.5 35.5 37.7 40 0
1986-96 1996-06 2005 2006 IGrowth of exports and imports (Oh) (everage annual gro wth) Agriculture 12 4.4 7.3 99 Industry 3.1 3.6 5.2 Q1 Manufacturing 3,4 3.2 5.4 14 Services 3.3 62 117 97 Household final consumption expenditure 2.7 4.1 8.0 86 General gov't finai consun ption expenditure 3.4 4.5 -2.6 97 Gross capital formation 4.4 43 9.6 PI lmportsofgoodsandservices 6.4 2.0 44.2 '26 - Note 2006 data arepreliminaryestimates This table was producedfrom the Development Economics LDB database *Thediamonds showfour ueylndicators ,nthecountry(tn bold) cornparedvnthds incomegroupaverage ~dataaremissing,thed~anondvnli
Dominican Revublic
PRICES and GOVERNMENT FINANCE 1986 1996 2005 2006 Domestic prices (%changeJ Consumer pdces 7.6 5.4 42 7.6 Implicit GDP deflatoi 9.4 5.5 42 7.6 Government finance (%of GDP. includes current grantsJ Current revenue 142 17.9 18.2 Current budget balance 3.6 35 Overall surpiusldeficit -12 -19
TRADE 1986 1996 2006 2005 /Export and import levels (US$ mill.) (US$ rnillionsj Total exports (fob) 891 4,053 6,145 6,441 j15,ooo Raw sugar 144 446 14 Raw cocoa 59 58 33 Manufactures 326 3,IX 4,760 4.50 Total imports (cd) 1,743 6,300 9,876 n,Bo Food 45 315 Fuel and energy 507 844 Capital goods 303 614 2.378 2,568
~ 00 01 02 03 04 05 06 Export price index(ZOOO=WOJ I Import price index(ZOOO=WOJ ~EXPOItS gimports I Terms oftrade (ZOOO=WOJ
101 BALANCE of PAYMENTS 1986 1996 2005 2006 ICurrent account baiance to GOP (Oh) (US$ millions) Exports of goods and sewices 2499 6,83 U,058 13,664 I imports of goods and sewices 2,059 6,646 11336 Q.748 Resource baiance -560 -656 -U78 -2.064 Net income -245 -725 -1697 -1,735 Net current transfers 596 1158 2,697 3,033 Current account balance -209 -2 0 -476 -786 Financing items (net) 227 183 1376 1,069 Changes in net resewes -18 30 -896 -283 Memo: Reserves including gold (US$ mill,ons) 430 512 1929 2251 Conversion rate (DEC, locaUUS$) 29 Q.9 30.0 33.1
EXTERNAL DEBT and RESOURCE FLOWS 1986 1996 2005 2006 Composition of 2005 debt (US$ mill.) (US$ millions) Total debt outstandingand disbursed 3.667 4,331 7,398 I IBRD 180 244 405 436 A 405 G 903 IDA 21 7 11 13 I a n Total debt sewice 374 446 894 IBRD 33 56 59 57 IDA 0 1 1 1 Compositionof net resourceflows Official grants 21 54 62 Official creditors a2 -29 19 Private creditors -6 -26 75 Foreign direct investment (net infiows) 50 97 1023 Portfolio equity(net inflows) 0 0 0 Worid Bank program Commitments 0 37 no 0 1 A - IBQD E- a,iaterzi Disbursements D 18 64 67 6-IDA D-Othermultilateral F-Private Principal repayments XI 38 38 35 IC-IMF G- Short-terr Net flows -6 -9 26 32 interest payments 25 9 21 23 Net transfers -21 -39 4 9
Note.This table was produced from the Development Economics LDB database. 9/28/07
102
MAP SECTION
19° 20° APRIL 2008 IBRD 36028 DOMINICAN REPUBLIC R.B. DE VENEZUELA
ATLANTIC OCEAN El Macao El Caribbean Sea
Area of Map LA Boca de Yuma HAITI COLOMBIA 6,000 3,000 1,000 THE BAHAMAS
RIVERS PROVINCE BOUNDARIES INTERNATIONAL BOUNDARIES ELEVATIONS IN FEET: ALTAGRACIA JAMAICA PANAMA CUBA
Higüey NICARAGUA GUATEMALA COSTA RICA HONDURAS BELIZE
EL Isla Saona Isla
La Romana MEXICO Gulf of Mexico SALVADOR PACIFIC OCEAN
UNITED STATES OF AMERICA LA
El Seibo 69°
69° Miches
DOMINICAN REPUBLIC ROMANA
18° EL SEIBO EL Dartmouth College, Hanover, New Hampshire, USA, 2007.
* Source: Annotated satellite imagery, Dartmouth Flood Observatory,
o
FLOOD INUNDATION BY TROPICAL STORM NOEL, OCTOBER 26–31, 2007, AND BY TROPICAL STORM OLGA, DECEMBER 10–13, 2007* MAIN ROADS RAILROADS PORTS NATIONAL CAPITAL PROVINCE CAPITALS TOWNS AIRPORTS c
o
S
any judgment on the
o i R status of any territory,
Hato
Mayor This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, the part of The World Bank Group, legal or any endorsement acceptance of such boundaries. EMERGENCY RECOVERY PROJECT
San Pedro
de Macorís
Samaná
a u
m
HATO g I
o
o MAYOR i
R
Puerto Duarte Puerto
SAN
SAMANÁ
MACORÍS
PEDRO DE PEDRO
Sanchez
Samaná Bahía de Bahía
Bayaguana
Boca
Chica de Boya de
Plata
Monte Sabana Grande Sabana
Nagua San Isidro San
SANTO DOMINGO
MONTE PLATA MONTE
DISTRITO
NACIONAL Haina 70° 70°
40 Kilometers
Juan
Rio San Rio MARÍA
Nigua
El Higüero El
TRINIDAD SÁNCHEZ
Yamasa
Cotuí Palenque
a
n a
u
m
Y
o a i RAMÍREZ
San Caribbean Sea Caribbean DUARTE R
SÁNCHEZ z
de Macorís
O Cristóbal San Francisco
o SAN
i Villa Hernandez
Gaspar R Fantino Altagracia
Baní CRISTÓBAL 0 102030 0 10 20 30 40 Miles
Salcedo SALCEDO
ESPAILLAT
NOUELSAN MONSEÑOR
La Vega
Moca
Bonao
Sousúa PERAVIA
San Jose de Ocoa
Bahía de Ocoa de
Puerto Plata
Azua
LA VEGA LA
ATLANTIC OCEAN ATLANTIC PLATA
Santiago Imbert Jánico
Constanza AZUA
Luperón 71°
71°
PUERTO SANTIAGO San Jose de las Matas
Mao
Barahona
r
u
S
l
e
VALVERDE d
e
u
q a Y
R i e o
t
r
o
San Juan N
l
e Polo d
e u
q
a
Sabaneta
Y
o
i BARAHONA
R
Neiba
SAN JUAN SAN
BAORUCO
Oviedo
Isla Beata Isla RODRÍGUEZ
El Cercado
SANTIAGO
L.
Duverge
Cabo Rojo Cabo
Enriquillo DAJABÓN
Restauración
LA ESTRELLETA LA INDEPENDENCIA
Dajabón MONTE CRISTI MONTE
Comendador PEDERNALES
Pedernales
Monte Cristi Pepillo Salcedo
Jimaní 72° 20° 19° 18° 72°