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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD1090 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT FOR A PROPOSED CREDIT IN THE AMOUNT OF SDR 33.8 MILLION (US$50 MILLION EQUIVALENT) Public Disclosure Authorized TO THE REPUBLIC OF MADAGASCAR FOR THE SECOND INTEGRATED GROWTH POLES AND CORRIDOR PROGRAM NOVEMBER 25, 2014 Public Disclosure Authorized Trade and Competitiveness Global Practice AFCS2 – Africa Region Public Disclosure Authorized This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s policy on Access to information. CURRENCY EQUIVALENTS (Exchange Rate Effective September 30, 2014) Currency Unit = SDR SDR0,6745 = US$1 US$1.4826 = SDR 1 MGA2654.98473 = US$1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ADAPS Association pour le Développement de l’Agriculture et du Paysannat du Sambirano ADEMA Aéroports de Madagascar AFD Agence Française de Développement AfDB African Development Bank AGOA African Growth and Opportunity Act APMF Agence Portuaire Maritime et Fluviale BIANCO Bureau Indépendant Anti-Corruption BOO Build, Own, Operate BoP Bottom of the Pyramid CAMM Chambre d’Arbitrage et de Médiation de Madagascar CAS Country Assistance Strategy CCI Chamber of Commerce and Industry CGA Centre de Gestion Agréé CIRAD Agricultural Research for Development CMU Country Management Unit CNaPS Caisse Nationale de Prévoyance Sociale CB Capacity Building CPIA Country Policy and Institutional Assessment CRDA Commission pour la Réforme du Droit des Affaires CTHT Centre de Technique Horticole de Tamatave DBI Doing Business Indicators DL Disbursement Letter DTIS Diagnostic Trade Integration Study EDBM Economic Development Board of Madagascar ERR Economic Rate of Return EOI Expression of Interest ESMF Environmental and Social Management Framework EU European Union FDL Fonds de Développement Local FDI Foreign Direct Investment FOFIFA Le Centre National de Recherche Appliquée au Développement Rural FY Financial Year GDP Gross Domestic Product GIS Geographic Information System GoM Government of Madagascar ii GP Global Practice IC Investment Climate ICAO International Civil Aviation Organization ICB International Competitive Bidding ICT Information and Communication Technology IDA International Development Association IFC International Finance Corporation IMF International Monetary Fund INSTAT Institut National de la Statistique de Madagascar IPF Investment Project Financing IPP Independent Power Producer IRR Internal Rate of Return IS Investment Services ISN Interim Strategy Note ISO International Organization for Standardization IT-BPO Information Technology-Business Process Outsourcing JIRAMA Jira sy Rano Malagasy KFW Kreditanstalt für Wiederaufbau M&E Monitoring and Evaluation MBIF Madagascar Business and Investment Facility MFI Micro Finance Institutions MNP National Parks of Madagascar MSME Micro, Small and Medium-sized Enterprise MGA Malagasy Ariary NGO Non-Governmental Organization NPV Net Present Value OCAI Opération Communale d’Appui Intégré OFID OPEC Fund for International Development OM Operation Manual ONTM Madagascar National Tourism Office OP/BP Operational Policy/Bank Procedure OPEC Organization of the Petroleum Exporting Countries ORT Regional Tourism Office OSS One Stop Shop PAD Project Appraisal Document PCGS Partial Credit Guarantee Scheme PCN Project Concept Note PDO Project Development Objective PGDI Governance and Institutional Development Project PIC1 Madagascar Integrated Growth Poles Project PIC2 Second Integrated Growth Poles and Corridors Project PIM Project Implementation Manual PIU Project Implementation Unit PPD Public Private Dialogue PMP Pest Management Plan PPP Public Private Partnership PPP Purchasing Power Parity QCBS Quality and Cost Based Selection QMM QIT Madagascar Minerals RPF Resettlement Policy Framework RN National Road iii SADC Southern African Development Community SBD Standard Bidding Document SCIM Société Commerciale et Industrielle de Madagascar SDR Special Drawing Rights SEP Secretariat Exécutif du Projet Pôle de Croissance SGS Syndicat Malgache de l’Agriculture Biologique SME Small and Medium-Sized Enterprise SNFI National Strategy of Inclusive Finance SNFR National Strategy in Rural Finance SOP Series of Projects SPS Sanitary and Phytosanitary SYMABIO Syndicat Malgache de l’Agriculture Biologique TA Technical Assistance VC Value Chain TMP Tourism Master Plan TVET Technical and Vocation Education and Training USC Use of Country Systems WBG World Bank Group WDR World Development Report WTP Water Treatment Plant WTTC World Travel and Tourism Council Regional Vice President: Makhtar Diop Country Director: Mark R. Lundell Senior Director: Anabel Gonzalez Practice Manager: Ganesh Rasagam Task Team Leader: Michael Olavi Engman iv REPUBLIC OF MADAGASCAR: Second Integrated Growth Poles and Corridors Program (SOP-1) TABLE OF CONTENTS Page PAD DATA SHEET ..................................................................................................................... vii I. STRATEGIC CONTEXT ....................................................................................................1 A. Country Context ............................................................................................................ 1 B. Sectoral and Institutional Context ................................................................................. 2 C. Higher Level Objectives to which the Project Contributes .......................................... 5 II. PROJECT DEVELOPMENT OBJECTIVES......................................................................5 A. Project Development Objective .................................................................................... 5 B. Project Beneficiaries ..................................................................................................... 5 C. PDO Level Results Indicators ....................................................................................... 6 III. PROJECT DESCRIPTION ..................................................................................................7 A. Project Components ...................................................................................................... 7 B. Project Financing ........................................................................................................ 17 C. Program Phases and Component (Series of Projects) ................................................. 18 D. Lessons Learned Reflected in the Project Design....................................................... 19 IV. IMPLEMENTATION ........................................................................................................20 A. Institutional and Implementation Arrangements ........................................................ 20 B. Results Monitoring and Evaluation ............................................................................ 21 C. Sustainability............................................................................................................... 22 V. KEY RISKS AND MITIGATION MEASURES ..............................................................22 A. Risk Ratings Summary Table ..................................................................................... 22 B. Overall Risk Rating Explanation ................................................................................ 22 VI. APPRAISAL SUMMARY ................................................................................................22 A. Economic and Financial Analysis ............................................................................... 22 B. Technical ..................................................................................................................... 24 C. Financial Management ................................................................................................ 25 D. Procurement ................................................................................................................ 25 v E. Social and Environment (including Safeguards) ........................................................ 26 Annex 1: Results Framework and Monitoring...............................................................................30 Annex 2: Detailed Project Description ..........................................................................................36 Annex 3: Implementation Arrangements .......................................................................................57 Annex 4: Operational Risk Assessment Framework (oraf) ...........................................................79 Annex 5: Implementation Support Plan .........................................................................................83 Annex 6: Selection of Proposed Regions and Sectors ...................................................................84 Annex 7: Economic and Financial Analysis ..................................................................................90 Annex 8: Map of Madagascar with Spatial Focus Areas ...............................................................98 vi PAD DATA SHEET Madagascar Second Integrated Growth Poles and Corridor Program (P113971) PROJECT APPRAISAL DOCUMENT . AFRICA Report No.: PAD1090 . Basic Information Project ID EA Category Team Leader P113971 B - Partial
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