Potential Environmental and Social Impacts

E1437 v. 2

vol. 3 Arab Republic of Egypt Public Disclosure Authorized

Governorate of Alexandria

Public Disclosure Authorized

Alexandria Development Project

Public Disclosure Authorized Integrated Environmental and Social Impact Assessment (IESIA)

Final Report

June 21, 2007

Public Disclosure Authorized HASKONINGvol. NEDERLAND 3 B.V. ENVIRONMENT

27 Yehia Ibrahim St., Apt 4 Barbarossastraat 35 Zamalek P.O. Box 151 Cairo 11311 Nijmegen 6500 AD Egypt The Netherlands +20 (2) 7351045 Telephone +31 (0)24 328 42 84 Telephone +20 (2) 7383091 Fax +31(24)323 1603 Fax [email protected] E-mail [email protected] E-mail www.nsce-inter.com Internet www.royalhaskoning.com Internet Arnhem 09122561 CoC

Document title Alexandria Development Project Integrated Environmental and Social Impact Assessment (IESIA)

Document short title IESIA, ADP Status Final Report Date June 21, 2007 Project name Integrated Environmental and Social Impact Assessment for the Alexandria Development Project Client Alexandria Governorate vol. 3 Abbreviations ABA Alexandria Businessmen Association ADP Alexandria Development Project ARP Abbreviated Resettlement Plan ASDCO Alexandria Sanitary Drainage Company AUDI Arab Urban Development Institute AWCO Alexandria Water Company CAA Competent Administrative Authority CDD Community Driven Development CDS City Development Strategy CEPT Chemically Enhance Primary Treatment DO Dissolved Oxygen DWTP Drinking Water Treatment Plant EEAA Egyptian Environmental Affairs Agency EGP Egyptian Pound EHD Environmental Health Department EIA Environmental Impact Assessment EMU Environmental Management Unit (Governorate) EPAP Egyptian Pollution Abatement Project ESA Egyptian Survey Authority ESMP Environmental and Social Management Plan ETP Eastern Wastewater Treatment Plant FIAS Foreign Advisory Services Program GAFI General Authority for Free Zones and Investment GIS Geographical Information System GOPP General Organisation for Physical Planning GTZ Deutsche Gesellschaft für Technische Zusammenarbeit HSES Health, Safety, Environment (al) and Social IBRD International Bank for Reconstruction and Development IDA Industrial Development Authority ICA Investment Climate Assessment IESIA Integrated Environmental and Social Impact Assessment IFC International Financing Corporation IT Information Technology MALR Ministry of Agriculture and Land Reclamation MCE Misr Consulting Engineers MEGP Million Egyptian Pounds MHUUD Ministry of Housing, Utilities and Urban Development MLI Ministry of Labour and Immigration MoH Ministry of Health MUSD Million United States Dollars NGO Non Governmental Organisation NSCE North South Consultants Exchange, Consultants, Egypt OSS One Stop Shop PE Population Equivalent PHRD Japan Policy and Human Resources Development PIP Project Implementation Plan PMU Project Management Unit PPP Public-Private-Partnership PSP Private Sector Participation

Final Report - i - June 21, 2007 QA Quality Assurance RBO Regional Branch Office (EEAA) vol. 3 REPD Real Estate Publicity Department RFP Resettlement Policy Framework RHK Royal Haskoning, Consultants, the Netherlands ROW Right of Way RP Resettlement Plan SA Social Assessment SFD Social Fund for Development TOR Terms of Reference UNDP United Nations Development Program UNESCO United Nations Educational, Scientific and Cultural Organisation UNICEF United Nations International Children’s Emergency Fund WTP Western Wastewater Treatment Plant WWTP Wastewater Treatment Plant

Final Report - ii - June 21, 2007 vol. 3 Rates of Exchange (June, 2007)

USD/EGP 5.73

Final Report - iii - June 21, 2007 vol. 3 TABLE OF CONTENTS Page ABBREVIATIONS...... I RATES OF EXCHANGE ...... III TABLE OF CONTENTS ...... IV LIST OF TABLES...... VII LIST OF FIGURES...... VIII 1 INTRODUCTION ...... 1

1.1 BACKGROUND OF THE STUDY ...... 1 1.2 PURPOSE OF THE IESIA ...... 2 1.3 SCOPE OF THE IESIA ...... 2 1.4 IESIA METHODOLOGY...... 3 1.5 METHODOLOGY FOR THE SOCIAL ASSESSMENT...... 7 2 POLICY, LEGAL AND REGULATORY FRAMEWORK...... 9

2.1 POLICY FRAMEWORK ...... 9 2.2 LEGAL FRAMEWORK ...... 12 2.2.1 World Bank guidelines...... 12 2.2.2 EEAA requirements...... 13 2.2.3 National environmental legislation...... 14 2.2.4 Relevant international agreements signed by Egypt...... 15 2.3 ADMINISTRATIVE FRAMEWORK ...... 18 2.3.1 Stakeholders...... 18 2.3.2 National level Institutions...... 18 2.3.3 Governorate level institutions...... 19 2.3.4 District level institutions...... 20 3 PROJECT DESCRIPTION...... 21

3.1 PROJECT RATIONALE...... 21 3.2 PROJECT COMPONENTS ...... 22 3.2.1 Structure of the Project...... 22 3.2.2 Priority Economic Infrastructure in support of Local Economic Development (Component 1) 25 3.2.3 Improving the Local Investment Climate (Component 2) ...... 35 3.2.4 Urban Upgrading of Squatter Settlement (Component 3) ...... 39 3.2.5 Institutional development and technical support to project operations (component 4)...... 43 4 BASELINE DATA...... 46

4.1 GENERAL OVERVIEW ...... 46 4.2 PROJECT AREAS ...... 48 4.2.1 Development area of Lake Marriout...... 48 4.2.2 Area of rehabilitated access roads ...... 48 4.2.3 El Nahda and Merghem areas ...... 49 4.2.4 El Amrawy ...... 50 4.2.5 El Hadara El Gedida ...... 51 4.2.6 Naga’ El Arab ...... 52

Final Report - iv - June 21, 2007 4.3 GEOLOGY...... 53 4.4 CLIMATE...... 56vol. 3 4.5 WATER BODIES ...... 57 4.6 AIR QUALITY...... 62 4.7 FLORA...... 62 4.8 FISHERIES IN LAKE MARRIOUT ...... 64 4.9 SOLID AND HAZARDOUS WASTE MANAGEMENT IN ALEXANDRIA ...... 64 4.9.1 Solid waste...... 64 4.9.2 Hazardous waste...... 65 4.10 SOCIO-ECONOMIC ASPECTS...... 66 5 POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS ...... 71

5.1 GENERAL ...... 71 5.2 ANTICIPATED POSITIVE IMPACTS ...... 71 5.2.1 Priority Economic Infrastructure in Support of Local Economic Development (Component 1)..71 5.2.2 Improve Local Investment Climate (Component 2) ...... 72 5.2.3 Urban Upgrading of Squatter Settlements (Component 3)...... 73 5.2.4 Technical support and project operation (Component 4)...... 74 5.3 POTENTIAL NEGATIVE ENVIRONMENTAL AND SOCIAL IMPACTS FROM ADP ...... 75 5.3.1 Potential environmental and social impacts from components including civil works ...... 75 5.3.2 Potential environmental and social impacts from components including civil works ...... 77 6 ANALYSIS OF PROJECT ALTERNATIVES ...... 78

6.1 IDENTIFICATION OF ALTERNATIVES ...... 78 6.2 ALTERNATIVE ANALYSIS FOR THE PROPOSED PROJECT ...... 78 6.3 ALTERNATIVES TO LAND DEVELOPMENT LAKE MARRIOUT (COMPONENT 1.1) ...... 79 6.4 ALTERNATIVES TO REHABILITATION CRITICAL ACCESS ROADS (COMPONENT 1.2)...... 79 6.5 ALTERNATIVE ANALYSIS TO URBAN UPGRADING OF SQUATTER AND INFORMAL SETTLEMENTS (COMPONENT 3) ...... 80 6.6 ALTERNATIVES TO PARALLEL ACTIVITY TO COMPONENT 1 (IMPROVING WASTEWATER TREATMENT SYSTEM) ...... 81 7 ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN ...... 83

7.1 INTRODUCTION ...... 83 7.2 SUMMARY OF IMPACTS ...... 84 7.3 MITIGATION MEASURES ...... 84 7.3.1 Mitigation measures for Construction Works (Components 1.1, 1.2, and 3)...... 86 7.3.2 Mitigation Measures during Operations...... 87 7.3.3 Mitigation Measures for Social Aspects ...... 89 7.4 MONITORING AND REPORTING ...... 89 7.4.1 General ...... 89 7.4.2 Contractor performance monitoring...... 89 7.4.3 Monitoring of the effectiveness of mitigation measures...... 93 7.5 SOCIAL MONITORING PLAN ...... 97 7.6 INSTITUTIONAL MEASURES ...... 99 7.6.1 Project Management Unit...... 99 7.6.2 Relation with other programs and organizations ...... 99 7.6.3 Handing over PMU tasks and responsibilities after termination of the project ...... 100 7.6.4 Capacity development...... 100 7.7 COST ESTIMATES...... 102 8 PUBLIC CONSULTATION AND DISCLOSURE ACTIVITIES...... 105

Final Report - v - June 21, 2007 8.1 INTRODUCTION ...... 105 8.2 REGULATIONS AND REQUIREMENTS ...... 105vol. 3 8.3 METHODOLOGY ...... 105 8.4 FIRST CONSULTATION STAGE ...... 106 8.4.1 Consultative Session ...... 106 8.4.2 Conclusions from the First Consultation Stage...... 107 8.5 SECOND CONSULTATION STAGE ...... 107 8.5.1 Introduction ...... 107 8.5.2 Activities ...... 108 8.5.3 Conclusions from the Second Consultation Stage ...... 111 8.6 PUBLIC DISCLOSURE ...... 111

ANNEXES

1. List of IESIA preparers 2. Available Information, References and Databases for ADP 3. Guidelines for a Social Assessment 4. Guidelines for Preparation of Resettlement Policy Framework 5. Study Area Map 6. General Content Requirements for the IESIA Report 7. Rating of negative environmental impacts 8. Stakeholders for the ADP 9. Announcement and lists of participants in public consultation sessions 10. Detailed description of squatter settlements 11. Photo gallery

Final Report - vi - June 21, 2007 vol. 3 List of TABLES 2-1: The status of Squatter Settlements and Investments in Alexandria 2-2: World Bank Safeguard Operational Policies and their applicability to ADP 2-3: National environmental legislation 3-1: Estimated cost of Phase I off-site infrastructure provision for land development 3-2: Estimated cost for Phase I road rehabilitation 3-3: Total investments in infrastructure and services in Phase I 4-1: Air quality in El Max area 4-2: Monthly temperatures in Alexandria 4-3: Monthly wind speed and direction in Alexandria 4-4: Average water quality in Lake Marriout 4-5: Average water quality in Alexandria drains 4-6: Air quality in Alexandria – February 2006 4-7: Air quality in Alexandria – January 2006 4-8: Annual fish catch from Lake Marriout 4-9: Population of the three settlements 4-10: Vulnerability in the three settlements 5-1: Potential negative impacts from Component 1.1 and 1.2 5-2: Potential negative environmental impacts from Parallel Activities to Component 1 5-3: Potential negative environmental and social impacts from Component 3 5-4: Potential impacts from Components not including civil works 6-1: Comparison of the land development alternatives 6-2 Comparison of Environmenat Impacts of Wastewater treatment Alternatives (Parallel Activities) 7-1: Potential high and medium impacts from ADP project 7-2: Mitigation Measures for General Construction Works (Components 1.1, 1.2 and 3) 7-3: Mitigation Measures during the Construction Phase specific to each component 7-4: Mitigation Measures during operations 7-5: Mitigation Measures General Social Aspects 7-6: HSES reporting requirements 7-7: Monitoring Program for General Construction Activities (Components 1.1, 1.2 & 3) 7-8: Monitoring program during operations 7-9-1: Mitigation Measures during Operation of Wastewater Treatment Plant - Parallel Activity by GOE 7-9-2: Monitoring program during operations of the Wastewater Treatment Plant - Parallel Activity by GOE 7-10: Social Monitoring Program 7-11: Cost Estimate of Environmental and Social Management Plan 8-1: Conclusions from the first consultation stage 8-2: Key issues raised by participants in second consultation stage

Final Report - vii - June 21, 2007 vol. 3 list of FIGURES

1-1: Schematic presentation of the applied IESIA methodology 3-1: Integrated Components of ADP 3-2: The ADP Project 3-3: Partners for ADP 3-4: Map of development strategy of Lake and Wadi Marriout 3-5: Location map of the Lake Marriout Development Area 3-6: Proposed Land Use at the Lake Marriout Development Area 3-7: Area of the selected roads for rehabilitation/reconstruction 3-8: El Nahda and North Merghem areas 4-1: Map of Alexandria city and locations of projects 4-2: Location map of El Amrawy 4-3: Location map of Naga’ El Arab 4-4: The main basins of Lake Marriout

Final Report - viii - June 21, 2007 vol. 3 Introduction Background of the study

The overarching aim of the project is to support development in Alexandria through strategic investments in hard and soft infrastructure that support its competitive advantages, which would contribute to removing constraints to private sector-led growth and improving the management and utilization of local assets, while ensuring the socio-economic integration of the poor.

Specifically, the project development objective is to support local development in Alexandria by removing key infrastructural constraints, reducing barriers to investment, and ensuring the socioeconomic integration of the poor.

The following are the key performance indicators: i. Increased private sector investment in the project area adjacent to Lake Marriout as a result of servicing lands and improved ambient conditions. ii. Improved accessibility and reduced travel time to the main centers of economic activity (industrial estates, enterprise parks, and Alexandria ports), through rehabilitation/reconstruction of selected arterial roads. iii. Improved living conditions of the population living in selected under-serviced squatter settlements as a result of increased access to basic infrastructure and economic services. iv. Improved local business environment as a result of streamlining key business start-up procedures and regularizing land ownership.

The preparation of the ADP has progressed under the leadership of the Governor of Alexandria and its Secretary General. The project builds on the vision of the City Development Strategy (CDS), and its objective and components have been defined, with cost estimates of each component/sub-component established.

The total investment cost of this project is USD110 million, of which USD100 million is an IBRD loan and USD 10 million is a contribution from the Government of Egypt. The duration of the project is 5 years from 2007-2012.

The Integrated Environmental and Social Impact Assessment (IESIA) is a tool to assess and mitigate environmental and social impacts. It specifically identifies major environmental and social issues related to the project components, collects base line data in relation to their environmental and social issues, compares alternative scenarios, and recommends environmentally and socially sustainable development approaches. The ADP is one of the many compatible concurrent projects and activities underway in the City of Alexandria, and this IESIA will reflect a coordinated and optimized effort.

The Government of Egypt/Alexandria Governorate has received a PHRD grant from the Government of Japan to support the preparation of the ADP. The IESIA has been funded through this grant. To this end, the Egyptian Consultancy firm North-South Consultancy

Final Report 1 June 21, 2007 Exchange (NSCE) in association with Haskoning Nederland B.V. has been contracted through international competitive bidding process for this preparation of this IESIA.vol. 3

Purpose of the IESIA

The purpose of the IESIA is to identify the major issues and impacts associated with the project and to identify any measures required to limit any such impacts to acceptable levels. The IESIA covers any significant issue of environmental and social concern.

At the administrative level, the IESIA furthermore serves various purposes:

• To allow policy makers and planners to appreciate the extent and significance of any potential impacts associated with the proposed project, and take these into consideration; • To provide basic information to the Egyptian Environmental Affairs Agency (EEAA) in accordance with legally defined procedures; • To provide clear instructions to designers and later on to works supervisors and contractors with regard to any measures that need to be implemented in order to limit any potential negative impacts to acceptable levels.

Scope of the IESIA

The Terms of Reference (TOR) for the IESIA was further detailed through an environmental scoping exercise during the Inception Period of the study. During this scoping exercise, consultation with key stakeholders took place and all the environmental and social impacts to be reviewed were identified and defined.

On the basis of the original TOR for the IESIA and further detailing thereof during the scoping stage of the study, the scope of the IESIA may be summarized as follows:

• Assessment of legislative, institutional and policy frameworks for environmental and social assessment, management, and reporting applicable to the project; • Execution of a reconnaissance-level survey of the locations of the proposed components in order to identify any environmental and social issues that need specific attention, and to specify, as required, mitigation measures at specific locations to avoid or minimize adverse environmental impacts; • Review of general baseline environmental and social conditions in the project areas on the basis of literature review, expert judgment, and reconnaissance level field visits; • On the basis of project documentation and the reconnaissance level site visits, review of the proposed project components and assessment of their potential negative environmental and social impacts; • Formulate practical, time-bound and cost-effective recommendations to mitigate the adverse environmental and social impacts that could arise during Implementation, operation and decommissioning; • Recommend what should be done for more detailed environmental and social analyses for specific subcomponents, as necessary;

Final Report 2 June 21, 2007 • Identification of alternatives that were examined in the course of developing the proposed project and identification of other alternatives,vol. 3 which would achieve the same objectives; • Preparation of an Environmental and Social Management Plan (ESMP) providing general and where possible specific direction on developing the various components to avoid or minimize adverse environmental and/or social effects that can be readily incorporated into the design of the components.

It is noted that this IESIA was executed in close liaison with the engineers/consultants undertaking the design in order to (i) appreciate the nature of the works, to (ii) provide environmental and social guidance to the design work, and to (iii) assist in structuring the ESMP in order that the appropriate elements of it can be readily incorporated into the design. This report is based on the following project documents:

-Report for Market Analysis, Land Use Planning and Structuring the Development Process for a Mixed Land Use Development, Lake Marriout Basin.

-Report for Enhanced Wastewater Treatment in Alexandria

-Baseline Survey of Squatter Settlements and Proposed Interventions

-Aide Mémoire, Project Appraisal Document

-Report for Traffic and Road Network Assessment and Feasibility Studies for Improvement of Traffic and Critical Roads in Support of Economic Activities in Alexandria.

-TOR for PSP in Industrial Development at Merghem and Nahda Areas.

-Preliminary Procurement Plan and Lots for ADP.

The stages of engineering preparedness of different sub-components of this Project vary in detail. This IESIA assesses the impacts of the ADP project based on the readily available information in addition to field surveys and interviews.

IESIA methodology

The methodology applied for the IESIA is schematically presented in Figure 1-1 and comprises in fact 6 different stages.

• Stage1: Includes an analysis of the proposed project in terms of activities to be undertaken, and facilities to be established. Includes furthermore a collection of baseline information on the state of the environment. Putting into consideration that many of the project components are still in the early stage of development, any additional information required for a component in order to properly assess its impacts on the receiving environment and on the society is identified. • Stage 2: Determines any project activities and facilities that might potentially cause interferences with the environment. Furthermore, determines any particular environmental and social sensitivities and

Final Report 3 June 21, 2007 conditions that are of relevance to the proposed project. Stage 2 includes a reconnaissance level visit to the project locations. vol. 3 • Stage 3: On the basis of the analysis in stage 1 and 2, identifies any potential impacts of the project on the environment. Depending on the nature of project activities and facilities, as well as the specific environmental conditions, the potential significance of such impacts is determined. • Stage 4: Identifies and reviews relevant measures to be taken in order to prevent or reduce any potential adverse impacts to acceptable levels. This stage also identifies necessary measures needed in order to properly investigate the impact of an activity that cannot be identified during this assessment. • Stage 5: Where impacts may not be successfully prevented, or reduced to acceptable levels, measures are defined to either recover environmental conditions, or compensate for unavoidable damage. • Stage 6: Reports on the results of the IESIA through an Environmental Statement.

Stages 4 and 5 of the assessment include also measures for monitoring and control of impacts, including verification of the effectiveness of the proposed mitigation measures.

Final Report 4 June 21, 2007 The results of the IESIA process subsequently feed into the ESMP for the project, which contains the following elements: vol. 3

• Summary of impacts: The predicted adverse environmental and social impacts for which mitigation is required are identified and briefly summarized. • Description of mitigation measures: The ESMP identifies feasible and cost effective measures to reduce potentially significant adverse environmental and social impacts to acceptable levels. • Prioritization of subprojects: Prioritization criteria are identified; subprojects are prioritized according to their social and environmental benefits based on the criteria set. Additionally, EIA requirements for different components are identified and references to EIA categories of subprojects are described. • Description of monitoring program: Environmental and social performance monitoring are designed to ensure that mitigation measures are implemented, have the intended result, and that remedial measures are undertaken if mitigation measures are inadequate or the impacts have been underestimated within the ESA report. It also assesses compliance with Egyptian standards and World Bank Group requirements or guidelines. • Institutional arrangements: Responsibilities for mitigation and monitoring should be clearly defined. The ESMP identifies arrangements for coordination between the various actors responsible for mitigation. • Implementation schedule and reporting procedures: The timing, frequency, and duration of mitigation measures are specified in an implementation schedule, showing links with the overall project implementation plans (PIP). • Cost estimates and sources of funds: These are specified for both the initial investment and recurring expenses for implementing all measures contained in the ESMP, and integrated into the total project costs.

Final Report 5 June 21, 2007 Figure 1-1: Schematic presentation of the applied IESIA methodology vol. 3

identification of environmental aspects

assessment of impacts Impact Assessment process control of impacts

recovery from impacts

Final Report 6 June 21, 2007 Methodology for the Social Assessment vol. 3 Social assessments use a variety of tools and methods that are sufficiently unique to warrant a separate section to describe them in detail. The social assessment that was conducted to evaluate and predict the impact of the ADP’s activities on the socio economic well being of the communities directly and indirectly affected used a variety of methods to ensure that the assessment was as participatory and inclusive as possible. For further information, the original methods and tools have been annexed to the Social Assessment Report.

The social assessment used a combination of primary and secondary data sources. The secondary sources were consulted, gaps in data identified, and on the basis of the information needed, the questionnaires and methodology for the research were identified and defined.

• Secondary sources include: o Baseline study carried out by the Social Fund for Development o Participatory Rapid Appraisal (PRA) carried out by CDS Consultant. o World Bank project documents (Aide Mémoire, Operational policy etc.) o ADP project documents (from other consultants) o Other reports (Egypt Human Development Report, Alexandria Human Development Report etc.)

• Primary sources include: o Focus Group Discussions (field work) o In depth interviews with community members in three selected squatter settlements (field work) o Stakeholder and key informant interviews (field work) o Transect walks/ field observation/photography of sites o Public Consultations

Sample selection The survey was carried out in the three settlement areas of El Amrawy, El Hadara El Gedida, and Naga’ El Arab. To stress and to cover the differences between the settlement areas and within each one, each area was split into three sub areas based on the socio-economic status of the population.1 The selection of the informants was carried out using a snowball approach, with the following criteria:

• Informants should be owners of land or buildings with no legal status, but might have legal papers (electricity bill, primary but not registered contract for land or real estate, etc). • No renters were interviewed. • This resulted in having the majority of males as informants; however consideration was given to include female informants as part of the sample.

1 The socio-economic status within the settlement areas was assessed subjectively, and based on previous secondary information.

Final Report 7 June 21, 2007 Informants for In-depth interviews and focus group discussions were selected using the same criteria and approach. All together 43 In-depth interviews and 5 focusvol. group 3 discussions were carried out in the three settlements areas. Additional interviews and focus group discussions were also held with the fishermen communities at Maawa El Sayadeen.

In depth interviews There were 43 were in depth interviews that were carried out in the settlement areas of El Amrawy, El Hadara El Gedida, and Naga’ El Arab. In addition, 9 key in-depth interviews were carried out with key informants (project staff, consultants and Governorate officials. An interview guide was used to make sure specific key issues from the perspective of different stakeholders were covered. For the key informants this helped to reach a clearer picture of the planning, progress and possible problems of the ADP components, and how to achieve a better understanding of the official standpoint on the main community concerns and problems before encountering the stakeholders in the field. Details on the key informants interviewed and the sampling and questionnaires used in the interviews in the settlement areas are listed in the Annex section of the Social Assessment Report.

Focus group discussions In total 7 focus group discussions were conducted in different project sites: 2 discussions were carried out in El Amrawy, one in El Hadara El Gedida, 3 in Naga’ El Arab, and one was conducted in the fishermen community of Maawa El Sayadeen. Focus groups were carried out as semi-structured group meetings with residents during which the participants were given the possibility to discuss and contribute to specific information of concern to the community stakeholders. The participants in the focus groups were selected based on their common characteristics, for example persons from the same area or with the same or similar potential risks, such as fishermen. The focus group discussions place particular emphasis on group dynamics, when issues of particular concern should be addressed to explore participants’ attitudes, feelings and experience as in this case an activity. The focus group discussions were carried out in similar ways in all three settlement areas.

Transect walks and field observations The transect walks and observations were carried out in the three settlement areas of Al Amrawy, Hedara El Gedida, and Al Naga' El Arab, and in the fishermen community of Maawa El Sayadeen These also ensured maximum representation of geographical, resource and socio-economic variations in the community. Three structured transect walks were carried out in the three settlement areas in addition to the recorded observations carried out during the field survey in the same areas. During the transect walks interviews were carried out with persons encountered if they were willing to answer questions.

Public Consultation The consultation process was carried out in two stages: during the scoping and after preparation of the draft IESIA. The approach used for the public consultation is detailed in Chapter 8 below.

Final Report 8 June 21, 2007 vol. 3 Policy, legal and regulatory framework The Integrated Environmental and Social Assessment for the project must meet a number of policy and legal requirements associated with the environment, social issues and resettlement. The World Bank safeguard policies and the Egyptian Environmental Protection Law No. 4/1994, Law No. 48/1982 concerning the protection of River Nile, canals and drains, and detailed requirements for conducting EA as defined in Law 4/1994 have been complied with during the course of project preparation and will also be complied with during project implementation. The IESIA should satisfy the requirements of both the World Bank and the EEAA, as outlined below.

Policy framework

Alexandria City Development Strategy Alexandria is the second largest city in Egypt. The city hosts about 40% of industry and 55% of the petrochemical industry in Egypt. Based on the SWOT analysis and a study on Alexandria competitiveness, the challenges facing Alexandria has been identified as follows:

• Generating 40,000 new jobs annually • Improving the local business climate • Promoting better industrial zoning and planning • Providing basic services to all • Upgrading ports of Alexandria and Dekheila • Strengthening the textile and garments sector • Strengthening the food processing sector • Developing the potential for petrochemical sector • Developing the potential of the tourism sector • Improving living conditions of residents in squatter settlements • Preventing further environmental deterioration of Lake Marriout.

In order to tackle long term economic development, the Alexandria Governorate, with the Assistance of the Cities Alliance, has developed the Alexandria City Development Strategy (CDS) for sustainable development (2006).

The objective of the CDS as stated by the Secretary General of Alexandria Governorate "is to build consensus among the city main stakeholders to come up with a shared vision of the city development through two-way information sharing between the technical experts and city stakeholders".

The Vision of the CDS is to (i) take advantage of its competitive endowments, (ii) better manage its local assets and (iii) remove constraints to private sector-led growth, while (iv) ensuring the socio-economic integration of the poor.

The CDS aims to achieve two targets:

• Developi ng a medium to long-term economic development strategy through designing specific strategies and initiatives to create economic

Final Report 9 June 21, 2007 development opportunities, especially in low income areas, squatter settlements and the means to finance them vol. 3 • Developi ng a participatory urban upgrading strategy for the squatter areas and land use plan of Lake Marriout area, within a sustainable development framework through designing specific measures to improve living conditions of residents, preventing further environmental deterioration of the lake area, and help to establish a sound regulatory framework for the Governorate to manage the Lake and pursue participatory approaches to urban upgrading and tenure security.

Within the framework of the CDS, strategies and policies has been developed in order to achieve the above targets:

Alexandria Local Economic Development: Five development programs have been identified as follows:

Program1: Implement High Priority Economic Infrastructure to Support Local Economic Development Program 2: Improve Local Investment Climate for Private Sector-led Growth Program 3: Urban Upgrading of Squatter Settlements Program 4: Human Development Program 5: Sustain Alexandria Participatory Strategic Planning Process

Comprehensive Strategic Development Plan for Lake Marriout Zone The plan aims to optimize the utilization of natural resources without causing any ecological disequilibrium in this vital zone. The rehabilitation of the lake zone is divided into immediate, medium and long-term action plans (2005-2013), with three main programs:

• Environmental: to reduce industrial and urban wastewater pollution • Policy and institutional reforms: to establish a Lake Management Authority responsible of the sustainable development of the lake and economic development of the surrounding areas. This is performed in coordination with GEF. • Socio-economic: to ensure improvement in the livelihood of fishermen and residents in surrounding squatter settlements.

Strategic Development Plan for Land Surrounding Lake and Wadi Marriout A preliminary land use plan for the first phase selected site for mixed land use development based on preliminary market analysis and understanding of city needs of services and land use.

Urban Upgrading Strategy Thirty squatter settlements were identified in Alexandria in which 1.2 million inhabitants live. The strategy included short, medium and long-term action plans taking into account existing and planned government interventions. Urban structure and land use plans have been prepared for three pilot areas (El Amrawy, El Hadara El Gedida and Naga’ El Arab).

Alexandria Tourism Development Strategy The strategy identifies the need for:

Final Report 10 June 21, 2007 • Improvement of hotel facilities and services vol. 3 • Increasing the capacity of 4 and 5 stars hotels for business and recreation stay • Focusing development interventions and promotion efforts on corporate, recreational and cultural tourism.

In order to finance the CDS Action Plan, the Government of Egypt requested an investment project from the World Bank to implement the Alexandria Development Project (ADP) which prepared a number of high priority development projects that responds to the immediate actions required in the CDS. The detailed description of these projects is provided in section 3 of this report.

The Egyptian Policy towards Squatter Settlements The Egyptian government response towards squatter settlements has contributed to extrapolation of the problem. Based on the increasing pressures of squatter settlements as the main host for terrorists, the Egyptian government adopted the National Upgrading Policy of Squatter settlements in 1993. The policy aimed at upgrading most of the 1221 defined squatter settlements through providing them with required infrastructure, services and roads.

After investing more than EGP 2.8 billion to implement some upgrading activities within 895 settlements, the evaluation of such policy has concluded some positive aspects such as:

• The government’s recognition of squatter settlements and their right to have access to basic services and facilities to raise the quality of their living condition • Providing several areas with basic infrastructure such as water supply and sewage networks together with several services such as schools, health care centers and police stations which resulted in establishing more secure and stable communities.

However, this policy has been criticized for several negatives issues such as:

• The concentration on physical improvement rather than socio-economic development. All statistics among the residents of these areas have proven there preference to tackle the problems of unemployment and poverty rather than, installing services such as roads and infrastructure. • Very little attention has been paid for the issue of community participation or other non-governmental actors such as NGOs, CBOs or private sector. Accordingly the impact of upgrading projects within these settlements has not been as expected by the government, which continued to play the sole role in this process.

Final Report 11 June 21, 2007 Table 2-1: The status of Informal Settlements and Investments in Alexandria in 2004 vol. 3 Total Number of Areas to be removed Areas to be upgraded Informal Removed Under Not yet Total Upgraded Under Not yet Total Settlements removal removed upgrading started 54 5 2 0 7 5 42 0 47 Source: Ministry of Local Development Centre 2004

Legal framework

World Bank guidelines

World Bank requirements for EIA’s are laid down in the Operational Policy for Environmental Assessment (OP 4.01). Further guidelines are presented in the Environmental Assessment Sourcebook (1991) and updates thereof.

The Operational Policy 4.12 on Involuntary Resettlement and Land Acquisition examines whether the development project would require any involuntary resettlement and/or land acquisition. The implementation of the project will not induce any resettlement, however, for some sub-components there will be a possibility that the roads will be enlarged on additional lands neighbouring the right-of-way, this could require the expropriation of Land from two state owned public companies, namely the Nasr Saline Company and Alexandria Petroleum Company. This could also be the case for components related to increasing access to infrastructure and services. In these cases the land acquisition and expropriation mechanism will be carried out in accordance with the RPF. The governorate of Alexandria will be responsible for any potential costs for resettlement and/or land acquisition associated with the project.

Other relevant standards that would potentially be applicable are:

Final Report 12 June 21, 2007 Table 2-2: World Bank Safeguard Operational Policies and their applicability to ADP vol. 3 No. Policy Policy Justification triggered 1 OP 4.01 Environmental Assessment Yes This policy applies to all projects requiring Category A environmental assessment All environmental and social impacts of ADP are adequately examined ADP will have significant positive impact on the Lake Marriout and Mex Bay ADP is not likely to have significant negative environmental impacts on its area of influence 2 OP 4.12: Involuntary Resettlement and Land Yes Resettlement is not expected from any of the project Acquisition activities. However, if proper implementation of infrastructure in squatter settlements requires it, the RPF will be triggered. In this case, a full resettlement plan will be drafted in line with the RPF and the Governorate of Alexandria will be fully responsible for any costs incurred in this regard. 3 OP 4.11: Cultural Property No The implementation of the water supply and sanitation project will not require the demolition of any known historical sites, nor will it directly affect any known archaeological sites. 4 OP 4.20: Indigenous People No No indigenous people are present in project areas 5 OP 4.09: Pest Management No ADP will not affect pest management by any way 6 OP 4.04: Natural Habitats No The vegetation associated with Marriout Lake comprises communities of both aquatic and terrestrial habitats. Towards the shore of the lake, the soil is saline and halophytic vegetation prevails. ADP will not have any significant conversion or degradation of the Marriout Fauna and Flora, which is at present threatened because of severe eutrophication. On the contrary with the improved water quality of the Lake, it is expected that the natural habitats of the fresh and coastal ecosystems will be improved. 7 OP 4.36: Forestry No No forest areas exist 8 OP 4.37: Safety of Dams No ADP does not involve construction of dams, and not depending on any dams 9 OP 7.50: Projects on International Waterways No This is applicable to water bodies that form a boundary between two states or any other water body that is a part of these boundary water bodies. OP 7.50 is not applicable to this project. 10 OP 7.60: Projects in Disputed Areas No This policy introduces specific requirements for loans in areas disputed by more than one country. This is not applicable to the ADP.

EEAA requirements

The Egyptian Environmental Affairs Agency (EEAA) is the central Egyptian organization for environmental protection. In collaboration with the UNDP, EEAA published the National Environmental Action Plan 2002 / 2017. Through Law 4/1994 and the Prime Minister Decree number 338/1995 (amended by Prime Minister Decree 1741/2005), the EEAA has the coordination authority with respect to environmental pollution with different competent administrative authorities (CAA). These CAAs are the responsible ministries/governorates for different urban, industrial, agricultural, irrigation and petroleum activities.

The EEAA sets guidelines for Environmental Impact Assessments, reviews EIA for different activities and recommends approval / refusal of the proposed projects as part of the licensing procedures for any new activity or development. An EIA is required as part of the licensing procedures for any new project or expansion of existing activities. The EEAA classifies projects into three categories:

Final Report 13 June 21, 2007 • Category A projects likely to have minor environmental impact. The developer applies to the CAA before construction works are initiatedvol. 3 with an Environmental Screening Form "A". • Category B projects that may result in significant environmental impact. The developer applies to the CAA before construction works are initiated with an Environmental Screening Form "B". • Category C projects requiring complete EIA due to their potential impacts.

National environmental legislation

Number of Egyptian environmental laws are enforced to ensure proper management of environmental resources and to set limits for air and water quality. These laws are:

Final Report 14 June 21, 2007 Table 2-3: National environmental legislation vol. 3 Law Executive Regulations Description Applicability to ADP Law 4/1994 Prime Minister Decrees No. State the environmental licensing requirements, Yes 1741/2005 and 338/1995 environmental performance registration requirements, requirements for proper handling and disposal of solid and hazardous wastes, limits of air pollutants from industrial establishment, ambient air quality, limits for discharge to the marine environment, ambient sound levels and limits for environmental noise from establishments. Law 102/1983 - States the requirements for management of natural No protectorates

Law 93/1962 Minister of Housing Decree No. Sets limits for reuse of treated wastewater in agricultural Yes 171/2005 " The Egyptian Code purposes ECP 501-2005"

Minister of Housing Decree 44/2000 Sets limits for effluent discharges to the public sewer Yes Law 48/1982 Minister of Irrigation Decree No. Set limits for ambient water quality for water and for Yes 8/1983 effluent discharges to the water bodies (Nile, irrigation canals, drains, lakes and groundwater) Law 57/1978 Minister of Housing Decree No. Concerning eliminating ponds and pits Yes 206/1979 Law 12/2003 Set of Minister of Labour Decrees Set limits for air quality in the working environment and Yes requirements for occupational health and safety for workers and labor force

Relevant international agreements signed by Egypt

The Egyptian Government has ratified multilateral environmental agreements on biodiversity and natural resources, oceans and seas, hazardous materials and chemicals, atmosphere and air pollution, and health and workers safety. The following table lists the multilateral agreements relevant to the project activities:

• The convention for the protection of the Mediterranean Sea against pollution (Barcelona) and its amendments and protocol regarding pollution from land-based sources which lists the substances of which discharge is prohibited, and the factors which should be taken into account in order to eliminate pollution from these substances. It also lists substances for which discharge is subject to authoriation by the competent national authorities. This authorisation must take particular account of the characteristics and composition of the waste, the characteristics of the elements in the waste in terms of harmfulness, the characteristics of the place where the waste is discharged and the marine environment it is entering, the techniques available to manage the waste, as well as possible damage to marine ecosystems and its effect on sea water usage. • Convention on Wetlands of International Importance Especially as Water Fowl Habitat (RAMSAR) • Convention Relative to the Preservation of Fauna and Flora in their Natural State • International Plant Protection Convention • African Convention on the Conservation of Nature and Natural Resources • Protocol to Amend the Convention on Wetlands of International Importance Especially as Water Fowl Habitat

Final Report 15 June 21, 2007 • C onvention on International Trade in Endangered Species of Wild Floravol. 3 and Fauna (CITES) • C onvention on the Conservation of Migratory Species of Wild Animals (Bonn) • C onvention on Biological Diversity (CBD) • C onvention Concerning the Protection of the World Cultural and Natural Heritage • P rotocol Concerning Mediterranean Specially Protected Areas • P rotocol Concerning Specially Protected Areas and Biological Diversity in the Mediterranean • U nited Nations Convention on the Law of the Sea • A greement Relating to the Implementation of Part XI of the United Nations Conventions on the Law of the Sea of 10 December 1982 • A greement for the Implementation of the Provisions of the United Nations Convention on the Law of the Sea relating to the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks • C onvention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter • P rotocol to the Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter, 1972 • C onvention Concerning Prevention and Control of Occupational Hazards Caused by Carcinogenic Substances and Agents • P rotocol on the Prevention of Pollution of the Mediterranean Sea by Transboundary Movements of Hazardous Wastes and their Disposal • B asel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal • A mendment to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal • B amako Convention on the Ban of the Import into Africa and the Control of Transboundary Movement and Management of Hazardous Wastes within Africa • S tockholm Convention on Persistent Organic Pollutants (POPs) • U nited Nations Framework Convention on Climate Change

Final Report 16 June 21, 2007 • K yoto Protocol vol. 3 • W orkers Against Occupational Hazards in the Working Environment due to Air Pollution, Noise and Vibration • C openhagen Declaration on Social Development, 1995. • W orld Summit on Stainable Development • M illennium Development Goals

Final Report 17 June 21, 2007 Administrative framework vol. 3 Stakeholders

The institutions are at different levels comprising:

• I nternational institutions: International Financing Institutions, Donor Agencies, etc. (World Bank, GTZ, etc.); • N ational level institutions for planning and policy issues: Ministries (MWRI, MHUUD, MoH, etc.) • N ational level institutions for regulation and policy implementation: EEAA, regulator (drinking water and sanitary drainage), water quality management • G overnorate level institutions: Alexandra Governorate, Operators (ASDCO, GAFI, etc.) • D istrict level institutions: local government, • C ommunity • O thers: Private sector (contractors, consultants), NGOs, Research Institutes.

Annex 8 presents table of stakeholders directly or indirectly involved in the ADP project.

National level Institutions

Several governmental ministries/agencies, besides the Governorate of Alexandria, are directly or indirectly involved in the ADP activities for planning, operational purposes, research, monitoring and regulations activities. The main ministries/agencies are:

The Egyptian Environmental Affairs Agency (EEAA) is the central Egyptian organisation for environmental protection. Through Law 4/1994 and the Prime Minister Decree number 338/1995 (amended by Prime Minister Decree 1741/2005), the EEAA has the coordination authority; with respect to environmental pollution; with different competent administrative authorities (CAA). These CAA are the responsible ministries / governorates for different urban, industrial, agricultural, irrigation and petroleum activities.

The EEAA regional branch office in Alexandria together with the Environmental Management Unit in Alexandria Governorate will be responsible to ensure that compliance of the ESMP will be undertaken by the different institutions included in the

Final Report 18 June 21, 2007 ESMP. The RBO will also have to ensure that discharge of treated wastewater will be in compliance with the Barcelona Convention and its protocols. vol. 3

The Ministry of Water Resources and Irrigation (MWRI) is the central institution for water quantity and quality management. Under law no. 12/1984; it retains overall responsibility for the management of all water resources, including available surface water resources of the Nile system, drainage water, groundwater and the Mediterranean coastline. MWRI has the authority to issue licenses for domestic and industrial discharges to the surface and groundwater bodies. Under this project, MWRI will be responsible for ensuring that the water quality of the Lake Marriout and drains will be in accordance with the Egyptian standards and guidelines.

The Ministry of Health (MoH) is responsible of public health in general. In the framework of Law 48/1982, this ministry is involved in standard setting and monitoring.

The Environmental Health Department (EHD) is responsible of monitoring with respect to potable water sources, drain waters to be mixed with other waters for drinking purposes, industrial and sewage plant effluents. The EHD will monitor the effluents from the Eastern and Western WWTP to ensure compliance with environmental legislation. The MoH reports non-compliances related to effluents to MARL for enforcement. Under this project, EHD will be responsible for monitoring the compliance of effluents discharged from the WWTPs with the relevant environmental standards.

The Ministry of Agriculture and Land Reclamation (MALR) develops policies on the use and subsidy reduction of fertilizers and pesticides to improve the water quality of agricultural drains. MARL will monitor the compliance of effluents from Eastern and Western WWTPs with the water reuse regulations as set forth in Egyptian Code for water reuse in agriculture. Under this project, MARL will be responsible for the monitoring the fish production and quality in case that effluents are used for aquaculture.

The Ministry of Labour and Immigration (MLI) is responsible of safeguarding the rights of labour force in safe working environment. Under Law 12/2003 and its executive regulations, Ministry of Labour sets limits for occupational health and safety in the working environment. THE MLI will inspect the compliance of the ADP project with the occupational health and safety regulations in Egypt. Under this project, particularly those related to the project activities.

Governorate level institutions

The Governorate of Alexandria is responsible of managing all activities within Alexandria. The Governorate has the administrative authority on the regional Ministerial offices in its territory. The district and city councils also are under its authority. The Governorate also plans and implements regional master plans. The Governorate is responsible for the overall supervision of the ADP project. The ADP is managed by a Project Management Unit that is headed by the Secretary General of the Governorate and will include a full time Environmental and Social Specialist to oversee the implementation of the ESMP that will be implemented by the relevant institutions in collaboration with specialised consultants.

The Alexandria Sanitary Drainage Company (ASDCO) is responsible for wastewater collection and treatment in Alexandria. ASDCO prepares master plans for wastewater collection and treatment; implements urban wastewater projects; operates and maintains

Final Report 19 June 21, 2007 wastewater collections systems and WWTPs; and provides permits for discharge to the public sewer network. ASDCO will be involved in all civil works related to wastewatervol. 3 collection and treatment.

The Alexandria Water Company (AWCO) is responsible for supply of potable water to Alexandria. AWCO prepares master plans for water treatment and distribution, implements urban water supply projects, and operates / maintains DWTPs and water distribution systems. AWCO is responsible of the water supply works for component 1.1 related to land development of the area surrounding Lake Marriout and component 3 related to increasing access to infrastructure and services.

The General Authority for Free Zone and Investment (GAFI) is the managing authority for the Amreya Free Zone. It provides permits for the industrial establishments working in the free zone and manages the utilities within the zone. GAFI will be responsible for the implementation of component 2.1 related to reducing times and steps of business start up procedures.

The Real Estate Publicity Department (REPD) is the department responsible of registration of property in Alexandria. REPD will be involved in the implementation of component 2.2 related to enhancing registration of property owned by investors

The General Authority for Industrial Development (GAID) is responsible for industrial development in Alexandria. GAID will be directly involved in component 2.3 related to enhancing PSP in private sector

District level institutions

District Authorities are responsible of managing all activities within their districts. The District Authorities are involved in the construction of public service buildings as part of the component 3 on increasing access to infrastructure and services.

Final Report 20 June 21, 2007 vol. 3 Project description Project rationale

The total investment costs of this project are 110 MUSD, of which 100 million as an IBRD loan and 10 MUSD as a contribution from the Government of Egypt. The duration of the project is 5 years: January 2008- December 2012.

The project is divided into 4 main components; each component is further subdivided into subcomponents. Every subcomponent consists of one or more subprojects. These subprojects are frequently complementary to (or proceed) other projects funded by other partners of the ADP Partnership (Figure 3-1).

Final Report 21 June 21, 2007 Figure 3-1: Integrated Components of ADP vol. 3

City Development Strategy

Improve quality of Improve treatment at Eastern Collection of untreated industrial effluents, and Western WWTP, Prevent sewage at Eastern prevent discharge of discharge of effluents to the Alexandria and proper Improve water quality in industrial effluents to main basin, reuse treated water treatment of sewage Drains Lake Mariout in fishing activities (ASDCO) (MWRI) (EPAP II) (CAPWO)

Sustainable Development of Land Improve sea water Improve Environment in Lake Surrounding Lake quality at Max Bay Marriout and bordering land Mariout (ADP)

Improve growth of natural habitats in Lake Reduce time and Reduce H2S and costs of business Improve health and Methane start up in living conditions of emissions from Alexandria Improve fish catch fishermen Lake (ADP)

Facilitate Improve business registration of property owned climate in Alexandria by investors (CDS)

PSP in industrial Improve Improve living development industrial conditions of residents (ADP) infrastructure in squatter settlements Rehabilitate critical access Residential, roads between industrial commercial, tourist and areas and ports recreational (ADP) development Increase access to Micro-credits to (ADP) infrastructure and residents in squatter services settlements (ADP) (ABA & SFD) Create new Job Opportunities

Project components

Structure of the Project

The following sections describe the project’s 4 main components and subcomponents. Figure 3-2 illustrates in summary projects components and cost, while Figure 3-3 illustrates partners providing parallel assistance under each component.

Final Report 22 June 21, 2007 vol. 3

Figure 3-2: The ADP Project Project Development Objectives & Components

The project development objective is to support local development in Alexandria by removing key infrastructural constraints, reducing barriers to investment, and ensuring the socioeconomic integration of the poor.

Components

Component 1 Component 2 Component 3 Component 4

Urban Upgrading of Squatter Institutional Development & Tech Support Priority Infrastructure in Support of Local Improve Local Investment Climate Settlements (IBRD: $25.00m to Project Operation Economic Development (IBRD: $73.5m) (IBRD: $0.90m + GoE: 1.1m) + GoE: $1.25m) (IBRD: $0.60m + GoE: $7.65m)

Comp 1.1 Comp 1.2 Comp 2.1 Comp 2.2 Comp 2.3 Comp 3.1 Comp 4.1 Comp 4.2 Comp 4.3

Designing Streamlining Supporting the regulatory, Establish Streamlining the registration operational Providing off-site technical and Alexandria Rehabilitating critical key business process of Providing basic infrastructure, Update of capacity of the infrastructure needed to financial Developt access roads linking major start-up existing land community facilities and services Alexandria PMU, M&E, support private framework for Agency centers of economic activity licensing and property at (works: IBRD $23m, community Urban Master EMP Design, development of lands private sector to (goods: IBRD in Alexandria (works: IBRD procedures the North services: IBRD $2.00m), (services: Plan (service: SPN (goods: bordering Lake Marriout manage large $0.40m), $28.5) (goods: IBRD Merghem GOE $1.25m) GoE $1.3m) IBRD 0.20m), (works: IBRD $45.00m) industrial areas (services: GoE $0.75 m) (Goods: IBRD (services: GoE (services: GoE $0.25m) $0.15) $6.10m) $1.10m)

Final Report 23 June 21, 2007 vol. 3

Figure 3-3: Partners for ADP

Corresponding Partnership Activities

GEF Cities Alliance CDS

Component 1 Component 2 Component 3 Component 4

High Priority Improve Local Urban Upgrading Institutional Development Economic Investment of Squatter and Technical Support to Infrastructure Climate Settlements Project Operation

Comp 1.1 Comp 1.2 Comp 2.1 Comp 2.2 Comp 2.3 Comp 3.1 Comp 3.2 Comp 4.1 Comp 4.2 Comp 4.3

Ministry of Housing: SFD: Pilot CIDA Business Bibliotheca IFC: PEP- GOPP EPAPII CIDA IFC: FIAS upgrading in Al- advisory service Alexandrina MENA cofinancing Amrawy to urban poor and GOPP and supervision

USAID: TAPR GEF AUDI-UNICEF II

GOE Cities Alliance GTZ/Kfw

Swiss Fund CIDA USAID for Dev.

Final Report 24 June 21, 2007 Priority Economic Infrastructure in support of Local Economic Development (Component 1) vol. 3

This component will finance works and related services (detailed engineering design construction supervision) aimed at achieving the following objectives: (i) Providing off- site infrastructure needed to support private development of land bordering Lake Marriout’s main basin; and (ii) Rehabilitating four critical access roads linking major centers of economic activity in Alexandria. The estimated cost of this component is $73.50, financed by IBRD.

Sub-Component 1.1 Providing off-site infrastructure needed to support private development of land bordering Lake Marriout’s main basin

The strategic development study for Lake Marriot and Valley (Seoudi 2005) outlined the boundaries of the Marriout Basin including the water body and its urbanized surrounding. The strategy discussed three main dimensions of the study area which outlined: - The Development Profile for Marriout Basin - The Environmental Profile of Marriout Basin - The Urban Profile of Marriout Basin

In the light of the analysis and interactions between the above-mentioned profiles, the strategic development planning for Lake Marriout and Valley was formulated with an overall objective to achieve Sustainable Urban Development.

The objective of this sub-component is to provide the off-site infrastructure2— specifically, water supply, wastewater and storm water drainage, access roads, electricity and telecommunications—that is needed to enable private mixed-use development of two selected high-value sites bordering Lake Marriout’s main basin. Based on a market assessment and a physical review of all lands available of development surrounding Lake Marriout, a feasibility study defined three sites which are feasible for development with the private sector, with high expected returns and financial revenues. Alexandria Governorate selected a site to be developed under Phase I of the ADP framework, while another site will be serviced under Phase II of the ADP. The selected site for Phase 1, Carrefour, is extremely valuable and is expected to generate large scale revenue stream to Alexandria.

This component will ensure that an extremely important piece of land at Alexandria’s ‘front door’ is developed in a quality fashion, and will also serve as a model for future public-private cooperation in urban land development. The simultaneous launch of the GOE-financed effort (See Box on parallel activity) to address the negative environmental externalities caused by the high pollution level of Lake Marriout’s main basin and the accompanying foul odors is thus expected to pave the way for the regeneration of surrounding areas which have suffered from depressed land values, and will enable the development of otherwise well-located and accessible land reserves, whose potential could not be realized due to the extent of pollution.

2 “Off-site infrastructure” is defined here as (a) infrastructure external to the designated development site that is necessary to connect it with the city mains, and (b) infrastructure provided by the government within the site in order to divide it into large development parcels- each will be released to the market.

Final Report 25 June 21, 2007 vol. 3

Figure 3-4: Map of development strategy of Lake and Wadi Marriout

Final Report 26 February, 2007 Figure 3-5: Location map of the Lake Marriout Development Area vol. 3

Pilot Project

Proposed site

A market analysis was conducted as part of project preparation to recommend the optimal land use mix, development density, and phasing plan that is legally permissible, market-supported, and which contributes to regenerating nearby areas and improving local revenues for Alexandria Governorate. The analysis indicates that a mixed-use development comprising retail/ commercial, residential, tourism and recreational uses with a Floor-Area-Ratio (FAR) of three would attract much demand from developers while at the same time providing an attractive development to the city. An FAR of three (i.e. maximum buildable area that equals three times the land area) translates into a medium-rise development (six floors on average3) with a land coverage ratio of about 50%.

This Sub-Component would finance the extension/improvement of off-site infrastructure needed to support such development program, including water supply, fire and irrigation systems, storm water drainage and wastewater networks, electricity and telecommunications networks, as well as access road network to service the different phases. The estimated cost for Phase I (Carrefour Site) is $20.90 million, broken down as follows.

3 The maximum permissible heights are a function of the graduated height restrictions imposed by the nearby Nozha airport (which is increasingly less utilized and reportedly to be decommissioned in the medium-term), neighboring developments, and discussions with local authorities.

Final Report 27 June 21, 2007 Table 3-1: Estimated cost of Phase I off-site infrastructure provision for land development (US$) Off-site infrastructure for land development (net Cost Phase Cost Phase Cost Phase Totalvol. Cost 3 area 380. 6 Feddans or 1.6 million sqm) 1.1 1.2 1.3 Phase I 1. Water supply, including fire system 944,000 435,000 601,000 1,980,000 2. Irrigation system 1,330,000 325,000 245,000 1,900,000 3. Wastewater and storm drainage system 2,691,000 2,467,000 691,000 5,849,000 4. Road network 1,009,244 868,456 1,286,390 3,164,090 5. Electricity and telecommunications network 8,077,000 0 0 8,077,000 Total electricity and telecommunication network, including substation Total off-site infrastructure 14,051,244 4,095,456 2,823,390 20,970,090

Based on the market analysis the development of the Phase I site will be undertaken in three stages of 210, 185 and 135 Feddans respectively. Within each phase two large sites of about 50 Feddans each would be released to real estate developers in a competitive selection process. The land area released could be readjusted in subsequent stages depending on the type of demand generated in the initial stages. A staged bidding process aims to maximize Alexandria Governorate’s proceeds from land sale, which it would use to cross-subsidize other project components, especially urban upgrading activities, and to finance service delivery and the regeneration of Lake Marriout and surrounding areas. Bidders in each stage will be provided with the overall structure plan, applicable zoning/development guidelines, and the timeline for the development and the GOE-financed Lake clean-up, which will constitute a legally binding agreement that is intended to reduce developers’ risks.

Final Report 28 June 21, 2007 Figure 3-6: Proposed Land Use at the Lake Marriout Development Area vol. 3

The Phase I pilot project (Carrefour Site) The land use planning for the Marriout Basin, classified into two sectors, has been studied according to three levels of details:

- 1st level: A conceptual planning for the second zone (sector) Marriout valley.

Final Report 29 June 21, 2007 - 2nd level: A structural planning for the first zone (sector) Marriout Lake. rd vol. 3 - 3 level: An experimental representative zone (as a prototype model)

Moreover, one of the main recommendations of the strategic development study (Seoudi 2005) was to implement a pilot project to test the proposed land uses and to adjust the land use distribution program.

The Carrefour site (see figure 3-5) was selected as the Phase 1 development zone (a prototype model and pilot project). The overall Carrefour site has an area of 528 feddans (222 hectares) and is bound by the Cairo-Alexandria Desert Highway from the south and east, Lake Marriout’s main basin and the new Coastal Highway from the west and the Moharam Bek-Kabary Road from the north. About 88.8 Feddans (37.3 hectares) have already been allocated to other uses including a large retail complex anchored by Carrefour hypermarket (which currently attracts 20,000 visitors daily), a residential complex and a Police forces hospital which are both under construction. Two corner lots are also currently used by two Contracting companies for equipment storage. These sites will be subject to the applicable zoning/development regulations under the project The site also has the following advantages:

- It has special features and is located within first development sector of Marriout Basin. - It is a good representative for the sector as it contains all the features of the sector. - The local consultant had initially proposed the site for implementing the pilot project and the governorate approved the recommendation. - The geological features of the site where it includes in some locations shallow water covered lands of depth between 20 to 40 cm which, if reclaimed, would provide sellable land in an excellent location. - The preliminary market studies had outlined that the area would attract investors and achieve high economic returns.

Final Report 30 June 21, 2007 vol. 3 Sub-Component 1.2 Rehabilitating critical access roads linking major centers of economic activity in Alexandria The objective of this sub-component is to rehabilitate four critical roads under Phase I (two major arterial roads and two important access roads) in very poor condition and which link centers of economic activity (including Al Nahda industrial zone and North Merghem enterprise park) with major transportation hubs (Dekheila and Alexandria ports, and Nozha and Borg Al Arab airports), and two other roads under Phase II. The identification of the four roads for rehabilitation under the project Phase I builds on broad-based private and public sector stakeholder consensus. These roads are:

(i) Om Zeghiou road, a 14km long arterial road extending from Al Ziraa Al Bahary road to Marsa Matrouh-Alexandria Road and Al Sad Al Aly road, and which links between industrial areas, the ports of Dekheila and Alexandria and the Cairo-Alexandria Desert Highway. The road is in very poor condition and will need to be rebuilt, especially a segment with two lanes seriously damaged due to settlement and which forces the large majority of trucks to move to the opposite direction thereby bringing traffic to a complete halt. (ii) Al Sad Al Aly road, a 6km long arterial road extending from the Marsa Matrouh-Alexandria Road to the Cairo-Alexandria Desert Highway, and which links the ports of Alexandria and Dekheila and the industrial areas north and south of Lake Marriout, and Cairo-Alexandria desert highway. The road is in a very poor condition requiring that it be completely rebuilt and provided with adequate storm drainage that would allow it to accommodate the heavy truck traffic that comprises most road usage. (iii)North Merghem road, an 8km unpaved collector road along the Nubariya canal (with an existing unencumbered right-of-way of about 10m) that serves the North Merghem Enterprise Park. Improving this road would accommodate local traffic in the area, instead of reliance on the Cairo-Alexandria Desert Highway, which adds significant congestion to a regional highway and greatly contributes to road accidents. (iv) Container Port access road, a 2.5 km long connection between Dekheila port and the newly built International Coastal Highway on an existing unencumbered right-of-way whose first half is a paved, little used local road and the second half, which passes between saltpans and is used by trucks, is graded but unpaved. The initial plan of an elevated connection was estimated to cost $20 million, a prohibitive cost that meant that the road was never built. The result is that the trucks that serve the container port on a daily basis continue to maneuver in the adjacent, congested residential areas, thus causing serious damage to an inappropriately designed local road network. A direct connection between the port and the Coastal Highway would speed truck traffic to/from the port and minimize inner-city traffic.

The detailed design of these roads is completed, undertaken as part of project preparation in the context of a traffic survey and road network assessment for the area encompassing the ports of Alexandria and Dekheila, North Merghem and Al Nahda areas, and the site adjoining Lake Marriout to be tendered for development. The estimated investment cost is $20.00 million for Phase I roads and $8.5 million for

Final Report 31 June 21, 2007 Phase II roads. The costing does not include possible compensation for the likely land acquisition from two State-Owned Enterprises in the context of improvingvol. Om 3 Zeghiou and Al Sad Al Aly roads. The end stretches of both roads pass by constricted residential areas (respectively 300m and 1,000m) and will need to be realigned in one instance along an existing internal service road in the Salt Company and is likely to be widened in the other case at the expense of the perimeter wall of the Alexandria Petroleum Company. The cost breakdown for Phase I roads is provided below:

Table 3-2: Estimated cost for Phase I road rehabilitation

Road name Length (m) Total cost (LE) Total cost ($) 1. Al Sad Al Aly road 6,000 40,000,000 6,956,522 2. Om Zeghiou road 14,000 20,000,000 3,478,261 3. North Merghem collector road 8,000 40,000,000 6,956,522 4. Container Port Access road 2,500 15,000,000 2,608,696 Total 30,500 115,000,000 20,000,000 * Cost for four roads does not account possible compensation for land acquisition, which would be determined in accordance with the Resettlement Policy Framework (RPF).

Total cost: The road rehabilitation sub-component is $28.50m, works, financed by IBRD.

Figure 3-7: Area of the selected roads for rehabilitation/reconstruction

Final Report 32 June 21, 2007 vol. 3

Om Zegiou Road

International Coastal Road

North Merghem Road

Cairo Alexandria Desert Road

In general the following works take place during road construction:

• C laiming the right of way, in the case that street widening at any of the areas of the roads is required; • Clearance of the road right of way if needed from any obstacles; • G rading, levelling and/or compacting the roads as appropriate; • A pply road filling in the areas/roads as required; • R oad paving activities as required; and • E rection of lighting poles; and • C

Final Report 33 June 21, 2007 onstruction of road sides and drainage system. vol. 3

Parallel Activity to Component 1 conducted by GOE 1- Improving wastewater treatment quality: GOE has committed itself to reduce the environmental degradation in Lake Marriout and remove the odors emanating from the discharge of primary treated and raw sewage into the local irrigation drains that connect to the Lake, thus improving living conditions for people living around the lake and increasing the value of surrounding land reserves available for future development. The Ministry of Housing, through the Cairo and Alexandria Potable Water and Wastewater Organization (CAPWO) has committed to take measures aiming to upgrade the existing treatment system, in both the Eastern and Western Wastewater Treatment Plants (respectively ETP and WTP) and improve sludge management.

Background: Until the 1980s, most of the domestic sewage and much industrial waste in Alexandria were discharged directly into the Mediterranean Sea from a number of locations around the city. Because of the pollution caused to the beaches and inshore waters, the local authorities decided to divert these discharges into the Lake Marriout. At that time, the discharge was untreated raw sewage. During that period, the lake became highly polluted with the various discharges. These effluents reached the Main Basin essentially at five hot spots on its eastern half. After 1993, all these direct discharges were connected to the newly constructed Eastern Treatment Plant (ETP) and the Western Treatment Plant (WTP), consisting of only primary treatment facilities, with the primary effluent being discharged into the Main Basin of the lake.

Currently, the Lake is seriously affected by the impacts of disposal of large quantities of domestic and sometimes industrial wastewater. This situation has resulted in deleterious impacts on public health and aquaculture and generated bad odors at the entrance of the city on the Cairo-Alexandria road. One of the major reasons of the poor water quality in the lake (in addition to the industrial wastewater discharges, that are being addressed by another Bank-financed project - Egypt Pollution Abatement Project II—EPAPII) is the disposal of up to 500,000 m3/day of partially (primary) treated effluent from the ETP to El-Qalah drain (that eventually discharges into Lake Marriout). This effluent has high organic load (about 151 mg/l of BOD). The dissolved oxygen (DO) concentration in the El-Qalah drain drops to as low as 0.2 mg/lit, with high concentrations of nitrogen. The El-Qalah drain runs for about 7km before it discharges into Lake Marriout. Daer El-Mattar drain surrounds the Alexandria airport and receives agriculture and domestic sewage. Furthermore, the Semoha, the El-Amlak and the El-Gonet drains further discharge some 200,000m3/day of untreated sewage into the El-Qalah drain. The effluent channel from the ETP plant discharges into the Daer El-Mattar drain that in turn carries the effluent to El-Qalah drain then to the Lake’s main basin. High organic loads are commonly measured in the effluents (BOD of about 160 mg/l, COD around 350mg/l, and DO less 3 mg/l). The Lake’s main basin also receives another 356,000 m3/day of partially (primary) treated effluent from the WTP at similar poor quality. Water quality analysis is performed regularly on the effluent by Alexandria Sanitary & Drainage Company (ASDCO).

2. Collection, pumping and treatment of untreated sewage East of Alexandria (funded by CAPWO): In recognition that enhancement of the primary treated sewage in Alexandria is only part of the solution; i.e. will not have an impact in improving the water quality in the lake as long as there are some 200,000m3/day of untreated sewage discharged into the lake from El-Qalah drain (collecting from the Semoha, the El-Amlak and the El-Gonet drains), CAPWO has secured local funding and tendered out a number of bids aiming at: a) constructing sewage collection network in un-serviced areas East of Alexandria; b) constructing pumping stations to transfer some of the sewage (120,000m3/day) to the ETP and some (62,000m3/day) to new small treatment plants; and c) constructing three new small secondary treatment plants in Al-Mamoura, Khorshid and El-Mothafeen areas, with a total capacity of 62,000m3/day. Another project between CAPWO and KfW is to collect and treat sewage West of Alexandria, in Al Amriya district. Finally, CAPWO is collecting and treating sewage of El-Agamy area, North West of Alexandria.

Final Report 34 June 21, 2007 Improving the Local Investment Climate (Component 2) vol. 3 This component finances goods, works and services to enable local and national authorities to achieve the following objectives: (i) Streamlining key business start-up licensing procedures at the Alexandria Investor Services Complex (One-Stop-Shop); (ii) Streamlining the registration process of existing land and property at the North Merghem enterprise park; and (iii) Designing the regulatory, technical and financial framework for private sector to manage large industrial areas in Alexandria. The component’s focus is on addressing three key challenges identified in the Egypt Investment Climate Assessment study and confirmed by investors’ and business associations in Alexandria as major constraints to doing business: (i) business start-up licensing procedures; (ii) access to industrial land, and; (iii) service delivery and management of industrial zones. The component relies on close cooperation between Alexandria Governorate and the Ministry of Industry and Trade through the Industrial Development Authority (IDA) and the Ministry of Investment through the General Authority of Free Zones and Investment (GAFI).

The estimated cost of this component is $2.00 million, of which IBRD contributes $0.90 million and GOE contributes $1.10 million.

Sub-Component 2.1 Streamlining key business start-up licensing procedures at the Alexandria Investor Services Complex (One-Stop-Shop) The objective of this sub-component is to streamline key business start-up licensing procedures at GAFI’s Alexandria Investor Services Complex’ One-Stop-Shop (OSS)4 through a reduction of processing time and steps and system automation. The aim is to reduce by 30% the time and by 15% the cost and number of steps needed to complete the business start-up licensing procedures which require 135 steps, 222 days and a cost of LE 89,023 or US$15,563 (against a paid up capital of LE 1.00 million, i.e. 8.9%).

Achieving such improvements will require a mix of process reengineering to streamline unnecessary steps (to be removed or authority delegated to the relevant officials in Alexandria) and system automation to improve communication, reduce time and improve monitoring, in addition to the necessary redesign of the OSS office space to accommodate the reengineered workflow.

As part of project preparation, IFC’s PEP-MENA is currently financing a grant-funded Business Start-Up Simplification Project at GAFI’s Alexandria OSS, which aims to reduce the regulatory burden on the private sector through comprehensive restructuring of relevant procedures facing business start-ups. The objective is to reduce cost, time and administrative steps required in business start-up registration and

4 The Alexandria OSS is in effect a co-location of government entities in charge of the different registration and licensing procedures. Currently, its services are divided into: (1) Registration procedures, requiring dealing with GAFI, lawyers’ syndicate, Capital Market Authority, Real Estate Publicity Department, and the Sales Tax department to incorporate and register a company (GAFI undertakes the process on investors’ behalf, but the OSS complains of the lack of Capital Markets Authority and sales tax representatives in the premises); and (2) Licensing procedures, which can have up to 32 entities affiliated with 18 line ministries represented as well as Governorate officials (GAFI has no control over these steps but assists in follow up). Today, the OSS has about 20 rooms and plans to expand to house the remaining non-represented entities. All are in need of equipment and staff training.

Final Report 35 June 21, 2007 licensing, and hence encourage both local and foreign investment in the Governorate. Successfully piloted reforms would be scaled up to the national level throughvol. the 3 Ministry of Investment and GAFI. The total cost to be funded by PEP-MENA is $900,000, including mapping of all relevant procedures, reengineering process to streamline unnecessary steps, preparation of detailed designs for system automation to reduce time and steps, improve inter-agency and intra-agency communication, and strengthen monitoring, and finally assistance in the practical implementation of streamlined processes (i.e. accompanying the installation and training of officials on all required new systems). The process mapping and baseline survey of the private sector have been completed, and will be disseminated in a major workshop planned in September 2006. The early steps of the reengineering process are currently underway.

As stipulated in the tri-partite agreement between Alexandria Governorate, GAFI and PEP-MENA, signed on October 3, 2005, the project will finance the procurement of necessary equipment (hardware, software, portals, etc) needed to implement key streamlined procedures. The definition of exact packages to be procured under this sub-component, however, depends on the outcome of the ongoing reengineering process and the ensuing GOE decisions as to which steps would be cancelled, delegated or kept in place, which in turn would determine the type of hardware/software, packaged training, and accompanying works to redesign OSS office space to accommodate reengineered workflows. In total, $0.75 million have been earmarked for this sub-component, estimated as sufficient to cover the procurement needs in terms of goods and related works that would enable the OSS to deliver streamlined, efficient service in the key above mentioned licensing procedures. Ultimately, a more successful reform process in terms of process reengineering (i.e. one which witnesses the cancelling or delegation of authority over as many unnecessary steps as possible) would imply a less costly automation process.

Total cost: The total estimated cost of this subcomponent is $0.750 million, financed by IBRD. This includes goods for supply and installation of integrated streamlining/automation package for business start-up procedures, and reconfiguration of office space according to revised workflow.

Sub-Component 2.2 Preparing the regulatory framework for the registration of existing land and real property at the North Merghem enterprise park The objective of this sub-component is to facilitate the legalization and registration of existing land and property informally held by investors in the North Merghem Enterprise Park. Access to and the price of industrial land—major constraints to doing business in Egypt—are especially acute in Alexandria. Existing investors are unable to legalize existing land and property assets, developed informally in the absence of land use plans and/or clear titles, and cannot access land to expand, and prospective investors cannot access well-located and adequately priced land. The North Merghem area, about 5.6km2 (1,333 Feddans), has about 247 enterprises, mostly small and medium-sized but with a few large establishments, that have been in operation for 20- 30 years and employ some 15,000 workers, but whose land and property is not legalized or registered. According to the Merghem Investors Association (MIA), investors financed their own services, mainly water supply and electricity and some internal paved roads, and they maintain it on an ad hoc basis. Most investors have still

Final Report 36 June 21, 2007 not managed to legalize their land ownership with the State Land Protection Agency (Amlak) after purchasing the land use rights from the Bedouins. Many investorsvol. have 3 open legalization files at the Amlak but very few completed the process.5 The result is that investors’ lands and improvements are not registered, and thus can not be used as collateral. Such is the extent of dissatisfaction this chronic issue causes among local investors that the Alexandria Businessmen Association made its resolution its top priority request to GAFI in their joint MoU in June-July 2006. Such a problem, if left unresolved, is likely to deter potential (foreign) investors seeking to invest in Alexandria, who would be concerned of a poor property rights regime and a poor perception of the Governorate agencies’ role in the investment climate.

As part of project preparation and with a Cities Alliance grant, technical assistance was provided to prepare a preliminary legalization strategy through the cooperation of MIA and the Amlak and a revision of the North Merghem structure plan. The legalization process was reactivated with the issuance of Governor Decree No. 603 of 2006 that established a committee to resolve related pending issues and present its recommendations to the Governor for issue in a decree governing the process. The committee, headed by the Assistant Secretary General and including the heads of the Amlak and legal affairs department and members of MIA’s Board of Directors, presented their mutually agreed recommendations to the Governor by the end of July 2006. The decree is expected to provide for the use of the revised plan as a legal basis for legalization. An investor dispute resolution committee established by GAFI will provide support to the process.

Under the project, this Sub-Component will finance the preparation of the detailed land use plan, mapping and survey equipment and production of cadastral mapping/surveys that will serve as a basis for land tenure legalization and property registration, and technical assistance to finalize the legalization framework details, including the pricing structure and applicability by land use, and dispute resolution mechanism including the treatment of disputing property claims, as well as to accompany implementation.6

Total cost: The total estimated cost of this subcomponent is $0.15 million for goods, financed by IBRD.

5 Despite past Prime Minister (1107 of 1995) and Governor (193 of 1999) decrees governing the legalization, the process stalled due to disagreement over the following issues: (i) applicable price of the land (base price at the time of squatting or of opening the file with Amlak); (ii) proof of ownership of the surface area held by investors (utility receipts confirm investors’ identify and date of squatting but not the area); (iii) payment of usufruct rent for a five-year interim period. 6 The revision of the detailed plan is critical. The Amlak’s outdated plan has very large right-of-way for streets without any relation to existing investments, which would force investors to either demolish large parts of their factories or legalize these “encroachments” using current, inflated prices. A second issue is applicable procedures by investment type or land use. The Amlak argues that storage/warehousing activities are in reality lands held by speculators who should pay current values, while MIA calls for equal treatment to all uses as some investors were wary of investing in an uncertain property rights situation. A final issue, which is not expected to be dealt with under the project, is that for some investors multiple claims have over the years arisen through inheritance or partnership disputes, and some lender-initiated foreclosures, which are being/should be dealt with in courts.

Final Report 37 June 21, 2007 Sub-Component 2.3 Designing the regulatory, technical and financial framework for private sector expanded role in managing and developing vol.industrial 3 areas in Alexandria The objective of this sub-component is to expand private sector participation in the management and development of industrial estates in Alexandria, through: (i) assisting IDA to strengthen the regulatory framework governing industrial zones development and management (a top priority for IDA and the Ministry of Industry and Trade, based on feedback received from international and regional zone developers); (ii) detailing appropriate institutional and financial arrangements for the management and development of Al Nahda and Borg Al Arab industrial zones (and at a broader level for North Merghem) based on private sector participation; and (iii) preparing a full Feasibility Study for a model privately-developed industrial estate on a pilot site in Al Nahda area. Successfully piloted initiatives will be replicated by IDA and the Ministry of Industry and Trade at the national level.

As part of project preparation, technical assistance, financed by a $250,000 grant jointly from the IFC FIAS and the Cities Alliance program, is currently underway to strengthen the regulatory framework for industrial estates development and management, devise institutional and financial arrangements for the management and operation of Al Nahda and Borg Al Arab areas, and study market demand for industrial demand in Alexandria as well as the pre-feasibility of a privately-developed industrial estate in Al Nahda area. The project’s sub-component will thus finance a full Feasibility Study for a model privately-developed industrial estate on a pilot site in Al Nahda area, in accordance with the recommended regulatory framework for industrial estates and in full compliance with the Bank’s environmental and social safeguards. The Feasibility Study would include setting the stage to identify a qualified private developer through a competitive bidding process and broker a PPP transaction, and determine off-site infrastructure interventions needed of the public sector as part of the PPP transaction including funding sources (including IDA’s industrial land fund).

Total cost: The total estimated cost of this subcomponent is $1.1 million, services, financed by GOE. This includes $1.00 million for the design of the framework and feasibility study of the Al Nahda and Borg Al Arab industrial zones, and $0.10 million for the preparation of a feasibility study for the North Merghem enterprise park, including preliminary engineering design and environment impact assessment, depending on the market demand study outcomes.

Final Report 38 June 21, 2007 Figure 3-8: El Nahda and North Merghem areas vol. 3

North Merghem Enterprise Area

Al Nadha Industrial Area

Urban Upgrading of Squatter Settlement (Component 3)

The objective of this Component is to increase access of the project’s squatter settlement population to basic infrastructure, community facilities and services in accordance with community needs and priorities. Phase I of implementing this component will focus on the three squatter settlements of El Amrawy, Naga El Arab and El Hadara El Gadida, with a total of $8.60 million investment to provide priority infrastructure, facilities and services. Detailed description of the 3 settlements are presented in Annex 10 of this report. The balance of the sub-component funds is earmarked for another three settlements to be determined in Phase II.

This component, which will be implemented by the PMU, finances works and community services to improve living conditions of residents in six squatter settlements through provision of basic infrastructure, community facilities and community services. The total estimated cost of this component is $26.25 million, of which IBRD will contribute $25.00 million. The PMU’s responsibilities include preparation of all studies in project settlements including a representative household survey, participatory identification and validation of community needs and priorities, preparation of feasibility and design studies and tender documents, tendering, construction supervision arrangements, and other community development activities in association with CDAs, ensuring O&M arrangements for the different project-

Final Report 39 June 21, 2007 financed assets and handover of asset responsibility to the appropriate entity, and monitoring and evaluation of outcomes. vol. 3

The Component is to pilot an integrated community/demand-driven approach to urban upgrading in six selected squatter and informal settlements in Alexandria, in a two- staged preparation and implementation process. The first three settlements—El Amrawy (population of 365,000), El Hadara Al Gadida (population of 134,000) and Naga Al Arab (population of 29,000)—have been selected, and community priorities identified The identification of the other three settlements and completion of preparatory work will take place in the first year of project implementation, to allow for integrating lessons learnt during the first stage.

The integrated approach to upgrading relied upon in this project represents a departure from the supply-driven, bricks-and-mortars focused approach typically used in Egypt, without community participation in planning and investment prioritization and without integration of socio-economic development with physical/infrastructural interventions. The project instead relies on a demand-driven, three-pronged approach including delivery of infrastructure and basic services, enabling the creation of economic opportunities for residents, and improving land tenure security. Finally, the project’s upgrading initiatives take place within the scope of a city upgrading strategy prepared by Alexandria Governorate as part of the CDS, which also aims to leverage donors and other resources for implementation. The aim is that a successfully piloted approach would be scaled up as part Egypt’s program to meet its Millennium Challenge Goals of connecting people to water, wastewater and reducing number of slum dwellers.

Phase I urban upgrading targets include: o 40 km wastewater network built in El Amrawy and Naga Al Arab; o 52 km surface water drains built in El Hadara and Naga Al Arab; o 50 km roads and lanes paved in the three settlements, with curbs and sidewalks; o 3 multi-purpose community centers facilities built and operational in the three settlements; o Post office built and operational in Naga Al Arab.7

In each of the settlements, the following socio-economic interventions are planned and would be carried out directly by local CDAs and NGOs:8 o Specialized Literacy Services, with CDAs/NGOs setting up and running multi-generation schools targeting children who dropped out of school and illiterate adult females and males with a core literacy curriculum that has simple vocational

7 In addition to the need for the service, post offices offer a broad range of important services, including savings instruments extensively relied on by poor households and their use by SFD to accept micro-credit repayments. 8 The identification process revealed the following: (i) in El Amrawy, there are three strong and active CDAs (Association for Development of Prince el Qibli, Association of Environmental Pioneers, and Association of El Salaam) and two weak but with potential (Association of Masgid el Amrawy and Association of Rabita Arama); (ii) in Naga Al Arab, three active CDAs (Association of El Fayoum, Association of Gharb district, and Association of Rabitat Ahaly El Wardian), and one weak (Association of Naga El Arab); and (iii) in El Hadara El Gadida, two active CDAs (Association of El Mansheya El Gedida, and Association of Mohandessin district), and two weak ones (Association of Ezbet El Gamaa and Association of El Sobhia).

Final Report 40 June 21, 2007 training to aid in gaining employment. Funding will cover training of trainers, curriculum development, equipment, and vol. 3 running costs for the first year. o Targeted Vocational Training, with local CDAs/NGOs setting up and running vocational training courses specifically tailored to the local job market. Funding will cover adapting curriculum, teaching materials, training trainers, supplying equipment, and running costs for the first year. o Family Health Services, with CDAs/NGOs setting up and running health units that concentrate on family health services and which are designed to complement government health programs and facilities in the area, including referral. Funding will include equipment, training, management capacity building, etc. o Small Business Support facilities, with NGOs/CDAs opening business support units to serve all members of the community. These facilities will provide useful information on products, markets, types and sources of credit, taxes, start-up registration, small business management, computer skills for business, etc.

The proposed subprojects are listed in the following table:

Table 3-3: Total investments in infrastructure and services in Phase I Bank Urban upgrading in three informal/squatter settlements: Cost Cost financing Hadara, Naga Al Arab and Amrawy (LE) (USD) (USD) A. Wastewater and drainage A1. Hadara surface water drains (32km drain pipes and gutters) 2,700,000 469,565 469,565 A2. Naga Al Arab sewerage network (19km network extension) 6,000,000 1,043,478 1,043,478 A3. Naga Al Arab surface water drains (19.9km drain pipes/gutters) 800,000 139,130 139,130 A4. Amrawy wastewater network capacity strengthening (TBD) 8,000,000 1,391,304 1,391,304 Sub-total wastewater and drainage 17,500,000 3,043,478 3,043,478 B. Streets and public spaces B1. Hadara main street paving (9km including curbs and sidewalks) 3,300,000 573,913 573,913 B2. Hadara lane paving (15km including curbs and sidewalks) 3,750,000 652,174 652,174 B3. Hadara Sadat street rehabilitation (3km public space improvement) 750,000 130,435 130,435 B4. Naga Al Arab streets (19km including curbs and sidewalks) 3,000,000 521,739 521,739 B5. Hadara Talaatin St. Extension 2,000,000 347,826 347,826 B6. Naga Al Arab railway crossing (2 controlled level crossing for vehicular and pedestrian, with wall) 660,000 114,783 104,348 B7. Naga Al Arab landscaping & lake front treatment to prevent fill 300,000 52,174 52,174 B8. Amrawy streets and lane paving (TBD including curbs, sidewalks) 7,200,000 1,252,174 1,252,174 B9. Hadara Derisa bridge 600,000 104,348 104,348 B10. Hadara Pedestrian bridge on Mahmoudiya canal 350,000 60,870 40,000 Sub-total streets and public spaces 21,810,000 3,793,043 3,761,739

Final Report 41 June 21, 2007 C. Community facilities vol. 3 C1. Hadara multi-purpose community center 1,000,000 173,913 C2. Naga Al Arab multi-purpose community center 1,000,000 173,913 173,913 C3. Amrawy youth/community area 350,000 60,870 60,870 C4. Naga Al Arab post office 350,000 60,870 Sub-total community facilities 2,700,000 469,565 234,783 D. Community services & capacity building activities D1. Specialized literacy services (CDA-run multi-generational schools in Hadara, Naga Al Arab and Amrawy areas) 675,000 117,391 117,391 D2. Targeted vocational training (CDA-run vocational training centers in Hadara, Naga Al Arab and Amrawy areas) 1,950,000 339,130 339,130 D3. Family health services (CDA-run health units in Hadara, Naga Al Arab and Amrawy areas) 1,140,000 198,261 198,261 D4. Environmental Services through NGOs 1,425,000 247,826 247,826 D5. Public Awareness through NGOs 900,000 156,522 156,522 D6. Small business support services (CDA-run business services for small entrepreneurs in Hadara, Naga Al Arab and Amrawy areas) 1,275,000 221,739 221,739 Sub-total community services & capacity building activities 7,365,000 1,280,870 1,280,870 Total 49,475,000 8,604,348 8,604,348

Total cost: The estimated cost of this component is $25.0 million, which IBRD contributes $25.00 million for works and community services

Parallel activities to Component 3 Development of youth and protection of children at risk in squatter/informal settlements in collaboration with AUDI and UNICEF ($355,000 in parallel funding): The regional Child Protection Initiative (CPI) program, supported by the World Bank’s MNA Region and implemented by the Arab Urban Development Institute (AUDI) and UNICEF, is implementing activities in Alexandria in coordination with the Governorate and within the umbrella of the ADP. The project aim is to “establish a protective framework for children at risk in Alexandria Governorate under the umbrella of local government, and in partnership with international organizations, NGOs and civil society actors via a mechanism that monitors children at local community level, identifies cases at risk and implements adequate interventions for their protection”. The interventions will take place in squatter settlements and aim to establish activity hubs for young people within a safe and nurturing environment. The program will also aim to: (i) set up a sustainable system for the protection of children at risk, (ii) increase youth participation through representative organizations, (iii) ensure integration of young people’s needs and priorities in the Alexandria CDS, and (iv) build the capacity of professional cadres responsible for the affairs of children and young people. Towards this end, a tripartite agreement between Alexandria Governorate, AUDI and UNICEF was signed on March 7, 2006, under the aegis of ADP, by which UNICEF will provide $175,000 and AUDI/CPI will provide $180,000. All works will be made in coordination with ADP planned activities and under the overarching CDS umbrella.

Final Report 42 June 21, 2007 Institutional development and technical support to project operations (component 4) vol. 3

This component consists of providing goods and services in support of institutional development and technical support to project operation. Specific activities are: (i) updating Alexandria’s Master Plan, including and urban structure plan of the Alexandria Governorate, a land use plan of Alexandria City and detailed plans for selected areas; (ii) establishing the Alexandria Development Agency; and (iii) supporting the operational capacity of the PMU for the implementation of the Project activities, the EMP, the monitoring and evaluation of the Project, and the engineering design and construction supervision of component 1 of the Project. The estimated cost of this component is $8.25 million, of which IBRD contributes $0.60 million for goods and GOE contributes $7.65 million.

Sub-Component 4.1 Updating Alexandria’s Master Plan The objective of this sub-component is to assist Alexandria Governorate to update the existing master plan, with the aim of producing an Urban Structure Plan for the Governorate, an updated Land Use Plan for Alexandria City, and preparing detailed urban plans for selected priority areas (action areas- detailed plans of new land development and Phase II squatter settlements). This pilot effort would put in practice the new urban planning regulations/guidelines developed under the draft Unified Construction Code (under review by Parliament), which delegates land use planning functions to Governorates.

Alexandria had two master plan revisions in recent years, which lacked coherence and were by and large not implemented.9 Meanwhile, the city’s urban growth was taking place at a much faster pace than planned for, as a result of significant un-coordinated allocation of public land and urban sprawl. Industrial development took place in unplanned areas such as Merghem. And the lack of a housing strategy left low and moderate-income groups no option but to convert State-owned land, including land leased from the Ministry of Agriculture and Land Reclamation, into urban uses.

The new Structure Plan would guide growth in the Governorate (i.e. metropolitan Alexandria), better connect Alexandria city and Borg Al-Arab new urban community; and develop an overall land use plan for areas surrounding Lake and Wadi Marriout as well as vacant land to the south of Alexandria Governorate. The assignment will also update Alexandria City General/Master Plan of 1997, and prepare detailed plans for selected areas (high value land surrounding Lake Marriout, so that the experience gained under component 1.2 is replicated fully by Alexandria Governorate in other sites; and urban plans for 3 other squatter settlements, so that the experience gained under component 3 is replicated fully by Alexandria Governorate in other sites).

Beyond preparing detailed plans for selected areas, a process for more expeditious, transparent, and fair release of publicly held land will be devised along with

9 The first plan, undertaken in 1985 by the Comprehensive Planning Authority, is a Comprehensive Plan that laid out a vision for Alexandria’s growth until 2005, but which has not been legally enacted. The second plan, prepared in 1997 by GOPP, diverged from the 1985 Plan, and while it was legally enacted, it was not enforced by Alexandria Governorate’s planning department.

Final Report 43 June 21, 2007 institutional arrangements to ensure that this is accomplished. This is extremely important as a means of timely opening up land for urban development.vol. The 3 assignment will be undertaken in close cooperation with and under the technical oversight of the GOPP.

Total cost: The estimated cost of this subcomponent is $1.3 million, service, financed by GOE. In addition, the GOPP will finance preparatory work, including existing situation analysis and update of existing land use maps, with a pledged amount of LE2.0 million ($350,000) as a parallel funding, based on the MoU signed between Alexandria Governorate and GOPP on July 31, 2006.

Sub-Component 4.2 Establishing the Alexandria Development Agency One of the project’s overarching aims is to build the requisite capacity within the Governorate to sustain the participatory strategic planning (CDS) process, promote for Alexandria building on many endowments and competitive advantages, and monitor the implementation of the Master Plan and arrange for its subsequent updates. Towards this end, this sub-component would assist Alexandria Governorate in its plan to establish ADA, which is planned to be given significant decision-making powers, resources and financial ability to implement its role. The ADA would be structured along the lines of similar agencies in partner European cities as Lyon, Barcelona and Seville. The ADA would coordinate with the technical unit of Lake Marriout Development Agency in order to manage in an orderly and transparent manner the release of publicly held land for urban development by the private sector.10 In two MoUs signed between Alexandria Governorate and each of Bibliotheca Alexandrina (December 11, 2005) and GOPP (July 31, 2006), the latter two committed themselves to provide technical support to the establishment of ADA.

Total cost: The estimated cost of this subcomponent is $0.65 million. This would procure necessary goods ($0.40 million, financed by IBRD) including all equipment and the set up a Geographic Information System (GIS) that would enable ADA to function efficiently, and services ($0.25 million financed by GOE), to cover the cost of required consultants especially in regard with land management and development in partnership with the private sector.

Sub-Component 4.3 Supporting the operational capacity of the PMU, engineering design and construction supervision The objective of this sub-component is to hire consultancy services under the TAS needed to support the PMU in project implementation as follows: (i) procurement, financial management, contract management activities, M&E of project indicators (estimated cost $1.20 million); (ii) monitor compliance with the EMP and safeguards issues (estimated cost $.90 million); (iii) engineering design and construction supervision of component 1 of the Project (estimated cost $3.70 million); (iv) TA and urban regulatory plan of component 2 (estimated cost $0.20); and (v) Project audit ($0.10). It also covers required goods for the PMU and EMP monitoring.

10 The technical unit might be empowered to manage the selection of developers and the implementation process for project component 1.2, the mixed use land development of a site bordering Lake Marriout.

Final Report 44 June 21, 2007 Total cost: The estimated cost of this subcomponent is $6.30 million, servicesvol. and 3 goods, of which IBRD would finance $0.20 million, goods for PMU and EMP, and GOE would finance $6.10 for services and auditor.

Final Report 45 June 21, 2007 vol. 3 baseline DATA General overview

Alexandria is one of the oldest cities in the world. The city, with its 4 million inhabitants, is located on north western border of the Nile Delta. Its borders extend all along a coastal line whose length is estimated to be 70 km to the west north of the Delta. The Mediterranean borders Alexandria from the north. Al Beheira Governorate borders it from the south. Alexandria’s borders extend along 171 km on Alexandria-Cairo desert high way, to the east reaching Abu Qir Bay and Idku Lake, and to the west reaching El Hammam town till the kilo 60 on Alexandria- Matrouh highway.

The Alexandria Governorate occupies a total surface area of 2299.97 km2. The Governorate is divided to 7 districts: El Montazah, East, Mid, El Gomrok, West, Dekheila and Amreya; in addition to Borg El Arab Region. The estimated population on 1/1/2004 is about 3,756,000, of which 49% is female and 51% male. The annual population growth (2003) is 1.74%. The main economic activities are agricultural, industrial, tourism and services.

Alexandria plays an important and a vital role in the Egyptian economy and cultural life since the oldest and biggest port is located in Alexandria. The bigger part of Egypt's foreign trade passes through this port whose capacity is estimated to be 75% of the total capacity of Egypt's ports on the Mediterranean Sea. Due to the fact that through this port the percentage of the ships passing represents 55% of the total number of ships incoming to the Egyptian ports on the Mediterranean. The city is considered a powerful industrial base since it includes 4417 industrial firms with a number of personnel estimated to be 201012 representing 17.3% of the total labour force of the city which is estimated to be 1161743 personnel. Alexandria's production represents 40 % of Egypt's total industrial production. There is a diversity of industries in the city. Among the most important industries are iron and steel, petroleum, cement, chemicals, petrochemicals, spinning and weaving, and fertilizers.

The rapid population expansion during the last few decades resulted in negative changes in the urban environment. One of the main changes is the increased burden on municipal and industrial water use. Consequently, the problem of sanitary drainage and wastewater collection and treatment has become one of the most serious challenges facing the city. The infrastructure of the City is further stressed by the influx of more than 2 million tourists during the summer months.

The projects under the ADP cover several areas in the Alexandria Governorate. These areas are shown in the following figure.

Final Report 46 June 21, 2007 vol. 3

Figure 4-1: Map of Alexandria city and locations of projects

Final Report 47 June 21, 2007 Project areas vol. 3

Development area of Lake Marriout

The development area occupies a surface area of approximately 548 feddans, of which approximately 262 feddans are available for new development. The area is bordered by the Cairo-Alexandria desert road on the south and east, the main basin of Lake Marriout and the Coastal road on the west and the Moharam Bek-Kabbary road on the north. The proposed development area is located on the eastern vicinity of the main basin of Lake Marriout.

The main activities on the site are the Carrefour commercial complex at the south eastern part of the site, a police memorial (eastern), a residential compound north of Carrefour (currently under construction) and the Vehicles Licensing Centre at the north. The northern part of the development area was used as a dumpsite for waste from construction activities. The accumulated waste is about two meters high. The western part of the development area is a low land filled with water with a water level of 20 – 40 cm in some locations. The low land is partially covered by water reeds.

Figure 3-2 shows the location and land use map of the project area. No fauna or flora of ecological or economic significance is observed in the proposed area.

Area of rehabilitated access roads

The Om Zeghiou road is approximately 12 km in length extending from Al Ziraa Al Bahary Road intersection to the roundabout intersection with the Marsa Matrouh-Alexandria Road and Al-Sad Al-Aly Road. This road is an important link serving several industrial areas and linking these areas with the Ports of Dekheila and Alexandria and the Cairo/Alexandria Desert Road. Om Zeghiou Road is in poor condition. Near the east terminus the road extends through a constricted residential section.

Al Sad Al Aly Road extends approximately 6 km from the north terminus at the Marsa Matrouh/Alexandria Road to the south terminus at the Cairo/Alexandria Desert Highway. This road serves as an important link among a) the port of Alexandria and the industrial areas north of Lake Marriout, and b) the industrial areas south of Lake Marriout and the Cairo/Alexandria desert highway. At the north terminus, the road extends through a constricted residential area. A high percentage of traffic on this road consists of heavy trucks. Al-Sad Al-Aly Road is in a very poor condition.

The North Merghem collector road borders the North Merghem Enterprise Area from the North, along the West Nubareya Drain. This 8km long local road (with a protected ROW of about 8-10m) is currently graded/compacted but not paved and as such it plays no role in providing access to the North Merghem Area. Instead, all local traffic to the North Merghem area is currently utilizing the Cairo-Alexandria Desert Highway, thereby creating significant traffic congestion and a major bottleneck to a regional highway and contributing to road accidents in the area. Figure 3-3 shows the location and land use of the project area.

The area of the selected roads is located north of Merghem Industrial area and south of El Max and El Agamy areas. The nearest air quality monitoring station to the project area

Final Report 48 June 21, 2007 is El Mex monitoring station. The station used automatic monitoring equipment for flu gases (sulphur dioxide, nitrogen dioxide, particulate matter less than 10 micronvol. "PM10" 3 and particulate matter as black smoke).

Table 4-1: Air quality in El Max area Month SO2 NO2 BS PM10

Permissible limits Day µg/m3 150 150 150 150 Year µg/m3 60 - 60 70 Average daily – January 2006 30 73 67 - Average daily – February 2006 38 40 160 - Average yearly – 2005 26.3 31.7 30.8 56.9 Source: EIMP annual reports for 2005 and monthly reports for January and February 2006

EIMP recorded two days of exceeding the limits for sulphur dioxide in El Max area during the year of 2005. An increased concentration of BS was recorded in February.

El Nahda and Merghem areas

The size of the North Merghem area is about 5.6 km2 (1,333 Feddans). The area stretches linearly for about 8km to the north of Cairo-Alexandria desert highway and with a depth ranging between 600-800m. It is bound from the west by Al Ziraa Al Bahary road and from the east and north by Al Nubareya canal. The area is strategically located, with direct access to the city, national highways and the Port of Alexandria. North Merghem is an Enterprises Area, as it houses 244 establishments.

Most of the establishments in the area are small and medium size enterprises, along with a few large enterprises, which undertake a mix of industrial, services and warehousing activities. The area also has a few residential pockets, including a public housing development, as well as a sizeable land area (approximately 15-25%) that are undeveloped or underdeveloped.

The Nahda area is located along the Cairo-Alexandria desert highway. This well located area of approximately 23 km2 (5,600 Feddans) was designated as an industrial area. The area houses 18 registered companies, of which 13 are active projects in the manufacturing, food processing and petrochemical sectors. Of these, there are five large- scale publicly and privately-owned industrial establishments in the petrochemical and textile sectors, with over 1,000 workers each.

The area’s infrastructure is limited, especially the main access road (which is planned with a 50 m right-of-way but only a two-lane undivided road exists) and sewerage. Power for the five large business establishments located in the area is supplied by the Alexandria Electricity Company and is reportedly satisfactory. However, power supply is reportedly deficient for the rest of the area, which is connected to the electricity grid of Beheira Governorate. Al Nahda has large land areas that are vacant (with a high water table in some areas). Figure 4-3 shows the location map of the project area.

The EEAA operates an air monitoring station in El Nahda area. This station started operation on 20 February 2006 and monitors the PM10 and dust fall in the area on yearly basis through sampling equipment. The samples collected in 2005 showed that the PM10 and falling dust in El Nahda area is 1 microgram per cubic metre for both parameters. However, there is no information available about other air pollutants such as sulphur

Final Report 49 June 21, 2007 dioxide, nitrogen dioxide, carbon monoxide, total particulate matter, volatile organic compounds or particulate matter measured as black smoke. The existing air qualityvol. data 3 is not sufficient to provide baseline information required for proper industrial development in the area.

The proposed industrial development area is located south of El Max area which includes a number of chemical, metallurgical and petrochemical industrial establishments. The area is also located west of the petrochemical area, where a number of petrochemical and oil/gas storage facilities are operating.

El Amrawy

The Amrawy area is located in El Montazah District and covers a surface area of 2.7 km2. The area is bordered by the southern part of Sidi Bishr area from the north, El Ma’moura hospital for mental health from the east, Street 45 from the west and villages from the south (El Brence, Ascot, El Shamy, Tourrel, Eirees and Naga’ As-Sallam). The villages are separated from El Amrawy by the Ras El Sawdaa road. The area is divided into 6 smaller areas separated by narrow streets as follows:

• El Amrawy El Kobra village • El Amrawy El Soghra village • Seclam village • El Togareyeen village • Arama village • El Folky village

This area used to be an agricultural land that had been informally urbanized and divided. There are some industrial activities south of the area (such as Seclam factory), agricultural activities (west of the area), commercial activities (new market under construction), services (vehicles, wood) and mainly residential. The internal streets are very narrow (4, 5, 6 or 8m wide). The main streets inside El Amrawy are about 10m wide.

There are some households (3.4%) in specific building blocks in the area that are not connected to the public sewer. The overflow of sewage in the streets was a more serious problem to almost half of the households in El Amrawy. Around two fifths of El Amrawy households complain from frequent water cuts. Water quality was also an issue for complaint from 27 percent of households in El Amrawy that declared facing problems related to potable water.

Other physical infrastructural complaints of some families of the three areas were related to lack of streets lights as well as no unpaved streets and side walks as dust pollutes the air.

Around half of the families in the area complained over the lack of street storm drains as Alexandria is the only city in Egypt that has several rain storms during the winter season. Accumulation of solid waste in the streets and the increase of insects and pests create health hazards. Although there are waste bins scattered in the area, yet not reaching all the area, residents tend to dump their wastes in empty lands or in streets. Figure 4-2 shows the map of El Amrawy area.

Final Report 50 June 21, 2007 Figure 4-2: Location map of El Amrawy vol. 3

El Hadara El Gedida

El Hadara El Gedida area is located in the Wassat District and covers a surface area of 0.08 km2. The area is bordered by the Mahmoudeya Canal from the north, agricultural lands from the east, the Suez Canal Street from the west and the Agricultural highway from the south. The area is divided into smaller areas as follows:

• El Rahma village • El Nozha • El Kholy village • Gamea’ village • Lakem & Brawy village • El Sobheya village • El Dreissa village

This area used to be an agricultural land owned by the Governorate that had been informally urbanized and divided in the 1990s. The area is mainly residential. The internal streets are very narrow (4-8m wide).

Final Report 51 June 21, 2007 The area is connected to the public sewer. However, the overflow of sewage in the streets was a more serious problem to almost half of the households in El Hadaravol. El 3 Gedida. Around half of El Hadara El Gedida households (53%) complain from frequent water cuts. Also those who live in high rise buildings suffer from low water pressure.

Other physical infrastructural complaints of some families of the area were related to lack of streets lights, which was a problem for half the families as well as no paved streets and side walks as dust pollutes the air. Almost four fifths of El Hadara El Gedida families (79%) suffer from unpaved streets. Additionally, around half of the families in the area complained from lack of street storm drains.

Accumulation of solid waste in the streets and the increase of insects and pests create health hazards. Although there are waste bins scattered in the area, yet not reaching all the area, residents tend to dump their wastes in empty lands or in streets.

Naga’ El Arab

The Naga’ El Arab area is located in the Gharb District and covers a surface area of 0.227 km2. The area is bordered by Street 218 and the railway from the north, Gannoub El Metras residential area from the east, Lake Marriout and Nubareya Canal from the west and Lake Marriout from the south. The field visits showed that solid waste is accumulated on the banks of Marriout Lake, some huts are constructed in the vicinity of the lake.

The area is divided into smaller areas as follows:

• El Metras village • Naga’ El Arab • Esso village

The Naga’ El Arab is one of the oldest settlements in Alexandria, existing since the 1950s.

There are about 20% of the households that are not connected to the public sewer. The overflow of sewage in the streets was a more serious problem to almost two thirds of Naga’ El Arab households.

Few households in Naga' El Arab are not connected to the water system and their source of potable water is public taps or they buy water, 15 percent of Naga' El Arab households complain from frequent water cuts.

Other physical infrastructural complaints of some families of the area were related to lack of streets lights, which was a problem for half the families as well as no paved streets and side walks as dust pollutes the air. Additionally, around half of the families in the area complained from lack of street storm drains.

Accumulation of solid waste in the streets and on the banks of Lake Marriout; and the increase of insects and pests create health hazards. Although there are waste bins scattered in the area, yet not reaching all the area, residents tend to dump their wastes in empty lands, the banks of Lake Marriout or in streets. Figure 4-3 shows the map of Naga' El Arab area.

Final Report 52 June 21, 2007 Figure 4-3: Location map of Naga’ El Arab vol. 3

Geology

Studies on the geology and geomorphology of the north-western Mediterranean coastal region of Egypt were reviewed by Helmy (2005). According to these studies, the entire northern region of the Egyptian western desert is covered by sedimentary formations, which range in age from lower Miocene to Holocene.

The Holocene formation is formed of beach deposits, sand dune accumulations, wadi fillings, loamy deposits, lagoonal deposits and limestone crusts. The beach deposits are composed of loose calcareous oolitic sand with some quartz grains and shell fragments.

The sand dune accumulations are in the form of either coastal or inland dunes. The coastal dunes are composed of snow-white, coarse calcareous oolitic sand, while the inland dunes are of reddish colour and finer sand. The wadi fill comprises lime gravel and fine alluvia. The loamy deposits are fine sandy loam intermixed with gravels. Lagoonal deposits are present in the depressions between ridges and are composed of gypsum intermixed with sand and alluvium. The limestone crusts are developed on the exposed limestone surfaces.

The Pleistocene formation is formed of white and pink limestones. The white limestones are in the form of exposed ridges stretching parallel to the coast. They are composed of white calcareous oolitic sandy limestones, yielding Pleistocene microfossils, echinoid spines, calcareous algae and shell fragments. The pink limestones are composed of pinkish white oolitic sand, yielding Pleistocene micro-fauna.

Final Report 53 June 21, 2007 The Pliocene formation is represented by creamy limestones which are marly and sandy in subsurface. They are partly exposed in some localities. The Miocene vol.formation 3 includes two divisions. These are collectively known as the “Marmarica Limestone”. The Lower Miocene type is formed of sandy limestones, shales and marles and is known as the “Moghrs Formation”. The Middle Miocene type is represented by limestones and dolostones with intercalations of clays, sandstones and siltstons.

Limestone Region of the Northwestern Delta The deltaic coast west of Abu Qir Bay is characterized by a morphologic structure different from that to the east. This part of the coast is formed from successive chains of oolitic limestone; between them are low valleys. The limestone chains themselves appear as ridges about 120 ft. above sea level. The region has five subdivisions:

i) The coastal range is comprised of white sand dunes mainly consisting of limestone particles. There are several ideas on how the dunes were formed. Some people consider them to be coastal dunes formed at a time when the Egyptian coast was completely dry. Others attribute to them a marine origin. The width of the coastal range is about 400 m2. ii) Wadi Marriout extends to the south of the coastal range at five meters above sea level or less. The wadi is covered by a thick limestone soil (derived from the bordering ranges) sometimes more than five meters deep. There are different theories about how the wadi was formed: whether from crustal movements or an old lake. iii) The Al- Max-Abu Suwayr range falls to the south of Wadi Marriout. It has a width of between 200 and 400 m. and its height is 36 m. The range slopes abruptly toward Wadi Marriout in the north and toward the Mallahat Marriout Depression in the south. The formation of this range is attributed in part to the influence of the wind. It was originally formed from remnants of sea shells and calcined sand particles fused by rain and evaporation. During the rainy season, rains loaded with diluted carbonic acid dissolve the calcium carbonate so it becomes bicarbonate; in the dry season this settles between the sand particles and solidifies. iv) Some geologists think that the western tip of the Max-Suwayr range was subjected to limited folding which uplifted the bottom of the Mallahat Marriout. Depression and separated from it the far western sector. Evidence of this is the gypsum formations (called Wadi Al-Gibs, i.e., gypsum) which are mounds of saline deposits six meters above sea level. These forms to the period between 12,000 and 10,000 B.C., when sea level was lower and aridity prevailed. The depression of Mallahat Marriout lies between the central and southern ranges. It was previously an extension of Lake Marriout. v) The range of Gabal Marriout (also called Al-Batn and Al-Qarn) forms the southern boundary of the depression; it is 35 m above sea level, and in the northeast reaches 51 m. although it is only 30 m height in the northwest. The width of the range is between 300 and 400 m to the south of the range, the raised plains of Marriout extend as far as the Miocene plateau.

Sandford and Arkell have summarized their opinions concerning these ranges: “The remarkable ridges of lime sand oolitic limestone west of Alexandria, separated by parallel valleys, afford a perplexing geological problem, but on the whole there is much to support the view that they were formed by wind action along a receding shore line; a new dune area is forming between the ridge nearest the sea and the present storm beach”.

Final Report 54 June 21, 2007 It is possible that the shape of Lake Marriout (broad in the east with an arm extendingvol. to3 the west) is attributable to its location at the convergence of deltaic formations with the region of oolitic limestone chains. The influence of the delta is apparent in the eastern lake which is broad and shallow, while the western part is clearly influenced by the morphology of the western coast.

Sand Dunes and the Northern Coast of the Delta Sand dunes are the main geomorphic feature in the greatest part of the deltaic coast east of Abu Qir Bay. Most of the sand dunes along the coast are low and narrow. They do not exceed a few meters above sea level, and their widths range between 500 and 1500 m three parallel lines of dunes stretch from the sea towards the interior. The outer line is about 50 m wide and consists of sand and silt mixed with some marine formations brought by seawater during high tide.

Lake Marriout Lake Marriout is different from the other Northern lakes in that it is a closed lake. It is also in a unique region characterized by the presence of limestone barriers. The lake is impounded between one of those barriers and the delta.

It is important to distinguish between Lake Marriout and the Marriout Depression. The lake does not occupy the whole depression; it covers only 23,690 feddans, or about 12.7% of the depression. The lake is broadest in the middle. It has no bays or bogs. A western arm of the lake extends to the southwest, along a hollow between the Al-Max- Abu Suwayr range in the north and Marriout ranges. The width of this 35 km long arm is from two to five kilometres. It is known as the of Mallahat Marriout depression. This arm is now cut off from the rest of the lake by the railway line built in 1858, and has become a group of shallow lagoons. The water level of these lagoons is high in winter and low in the summer, at which time a layer of white salt is left behind. The western end of Marriout is no longer covered by water; some halophytic shrubs and grasses grow in it.

The central section of the western arm is nearly always dry, but covered with layers of salt. The lower eastern end is always covered with salt water. There are no islands in Lake Marriout because it is far from the old deltaic branches and because the lake has shrunk to occupy only the lowest section of its basin. Some time in the past, there were eight islands in the lake. Now they are part of the surrounding land surface. The most famous lands were Al-Sharan, Tall Al-Ghazal, Tall Al-Gabarti, and Tall al-Hanash3. Mallahat Marriout has three islands at present.

Lake Marriout was fed by the Canopic branch, as was Lake Idku to the east of it, but in the 12th century that branch filled with silt and the connection of the lake with the Nile was cut. Thereafter Lake Marriout formed a number of insignificant stagnant pools whose level was related only to local winter rains. The lake gradually became a salt lake because of increased evaporation and because of sea inundation twice in the early 19th century (first in 1801, then in 1807).

The lake since 1892 has been fed by drainage canals. In order to keep the lake at a level of -3 m., excess water is pumped into the sea by Al-Max Pumping Station, created for this purpose. It can be said that today’s is partly a Lake Marriout creation of Nile drainage.

Final Report 55 June 21, 2007 Climate vol. 3 The climate in Alexandria is influenced by the Mediterranean Sea. The city has a warm dry climate with steady breezes from the sea that keep temperatures moderate in summer. The prevailing wind direction is from the north and northwest.

Temperature The following table shows the monthly temperatures around the year:

Table 4-2: Monthly temperatures in Alexandria MONTH TEMPERATURE (°C) Maximum Minimum Average January 19 9.5 14 February 19.5 10 15 March 21.5 11.5 17.5 April 24 14 19 May 26.5 16.5 21.5 June 29.5 21 25.5 July 30 22.5 26.5 August 30.5 23 27 September 30 21.5 26 October 27.5 18 23 November 25 15.5 20.5 December 20.5 11.5 16 Annual 25.5 17.5 21

Winds The following table shows the monthly wind speed and the direction of prevailing wind:

Table 4-3: Monthly wind speed and direction in Alexandria Month Wind Direction Speed (km/hr) January South west 14.5 February West 14.5 March West north west 14.5 April North west 14.5 May North north west 13 June North west 13 July North west 14.5 August North west 14.5 September North north west 13 October North 11 November North 11 December South west 14.5 Annual North west 13

Final Report 56 June 21, 2007 Relative humidity The monthly mean relative humidity is nearly constant, averaging 68.4% andvol. varying 3 between 64.7% in April and 71.3% in July.

Rainfall The average annual rainfall ranges between 170 – 190 mm at the coastal areas (according to the Dekheila and Alexandria meteorological stations respectively). The highest rainfall in one day is about 64.4 mm. Rainfall occurs only in winter in form of scattered showers.

Water bodies

Groundwater The highly urbanized flat narrow strip of land of Alexandria, bounded between the sea and the lake, is not viable for any groundwater exploitation. This is due to salinity of groundwater in the region.

Marriout aquifer underlying the area is leaky subject to upward seepage flow under the effect of artesian pressure. There are two water heads in Marriout aquifer system. The first is the surface water head, referring to water level in the lake, while the second is the potential in the aquifer itself. The difference between these two water heads at a certain location is an indication of the amount of vertical leakage. Previous field investigations showed that the piezometric head in Marriout aquifer is higher than the surface water head in the lake. The amount of vertical leakage is a function of the vertical hydraulic conductivity of the clay layer which isolates the lake from the aquifer. Figure 4-2 shows the hydrogeology in Alexandria.

Canals El Rayah El Beheiry; a main canal branching north of Cairo from the Nile provides the Alexandria region with fresh water through El Mahmoudeya and El Nubareya canals.

Lake Marriout In 1801, the original area was probably in excess of 700 km2. Because of railway and road construction isolating parts of the lake, the cessation of annual Nile flood after building the Aswan High Dam, and the policy of reclaiming land to the east and the south, the area of the lake is now less than 65 km2. The lake is fed from different water sources. Water mainly comes from the Umum agricultural drain, followed by the Qalah drain (mixed wastewater), rainfall, sewage, and industrial wastes beside seepage of underground water from the surrounding area. Human activities have put the lake to a wide variety of uses including fishing and discharging of primary treated sewage and industrial wastes. Therefore, the lake environment is continuously subjected to degradation and destruction due to human pressure. The Lake Marriout receives considerable amount of water containing mixed agricultural, domestic, sewage and industrial wastes from several sources. The deteriorating status of the Lake has resulted in diminishing fish catch as shown in table 4-7, deteriorating environmental conditions for the inhabitants around the Lake and diversion of fishermen to menial jobs.

Final Report 57 June 21, 2007 Until the eighties most of the domestic sewage and much industrial waste were discharged directly into the Mediterranean Sea form a number of outfalls vol.along the 3 coast of Alexandria. Pollution of beaches and the inshore waters caused severe impact on Alexandria as a summer holiday city; this made the local authorities decide to divert these discharges into Lake Marriout main basin. At that time, it was purely raw sewage without any treatment what so ever. During the period of direct sewage discharge to the lake mixed with industrial effluents, the lake main basin became highly eutrophic and polluted with various chemicals. In addition to the problem of organic inputs, there were many hazardous discharges. Latter, two primary treatment plants were built and started operation in the nineties. The sewage water passes through screens and then sedimentation tanks and a dewatering facility to remove the sludge. Nevertheless, the wastewater with all the soluble organics still being discharged into the lake until now, in addition to untreated wastewater going through the by passes of the treatment plants.

The situation has been partially improved but not to the extent of significantly reducing the pollution loads. This is due to the fact that the domestic wastewater that is treated does not represent the main bulk of pollution that comes from other sources like upstream Qalah drain and industrial wastes.

Water level in the lake is managed by pumping the water to the sea, as there is no strait connecting the lake to the Mediterranean. The fact that domestic sewage, industrial, and agricultural waste are discharged continuously to the lake makes this pumping station essential to maintain water level at 1.88 – 2.0 m below sea level.

The lake consists of five basins:

• The main basin (21 km2) with an average depth of 1.2 meters; • The northwest basin (10.5 km2) with an average depth of 1.25 meters; • The fishery basin (4.2 km2) with an average depth of 1.35 meters; • The southwest basin (21 km2) with an average depth of 0.5 meters; and • The west basin (8.4 km2) with an average depth of 0.6 meters.

Main Basin This basin is bordered on the south and east by the Cairo Alexandria desert road, on the north by El Kabbari rapid road and on the west by El Umum agricultural drain.

The main sources of pollution in the Main Basin are the primarily treated wastewater directly from the WTP and from the ETP via the El Qalah drain, some amounts of untreated sewage via the Semouha drain or treatment bypasses and industrial wastewater from direct discharges and runoff. Water reeds cover about 75% of the basin area.

The water quality of the Main Basin is affected by the discharge of domestic and industrial wastewaters that are either partially treated or untreated. Low dissolved oxygen was also measured in the Qalah and Moheet drains that are interconnected and discharge directly to the Main Basin. The increased amount of wastewater collected and

Final Report 58 June 21, 2007 the newly constructed sewage networks in some areas has resulted in higher discharges from the WTP and the ETP, introducing higher loads of organic matter to the Mainvol. Basin. 3

Total heavy metals concentration in the water of the main basin is considerably high reaching over 12 mg/l as compared to 1 ppm for the law limit. Iron is the dominant metal in water with a concentration of 10.2 mg/l. Other heavy metals concentrations in water mainly Ni, Cu, Zn, Cr, Pb are relatively moderate. The accumulated heavy metals levels in sediments are high especially for Mn, Cu, Zn, which are mainly, attributed to contaminated industrial wastewater discharges from metal finishing industries.

Northwest Basin Several petroleum refineries and other industrial establishments are located adjacent to the basin and discharge their wastewater directly to it. The basin also receives waster from the Umum drain through several openings. This basin has the least vegetation. Total heavy metals concentration in the water of this basin is considerably high reaching over 5.5 mg/l as compared to 1 ppm for the law limit. Iron is the dominant metal in water with a concentration of 4.8 mg/l. Other heavy metals concentrations in water mainly Ni, Cu, Zn, Cr, Pb are relatively low. The accumulated heavy metals levels in sediments are very low, as this basin does not receive any appreciable industrial discharges.

Fisheries Basin The basin is bordered from the south by the Abis dumpsite, which is recently closed and is under rehabilitation. At present approximately 400,000 m3 / day of the Umum drain are pumped into the basin and dilution of the Qalah drain takes place from the eastern side of the basin. Groundwater piezometric head with the fisheries basin is higher than the surface water level.

West and Southwest Basins These two basins are separated by the Umum drain. The drain has several connections to the basins water. The groundwater piezometric head is lower than the water surface. These two basins are considered the least polluted but they are largely covered by aquatic plants. . Figure 4-4: The main basins of Lake Marriout

Final Report 59 June 21, 2007 vol. 3

Final Report 60 June 21, 2007 The water quality of the Lake Marriout and drains has been analyzed by the Lake Marriout Rehabilitation Component. The water quality of the basins is as vol.follows: 3

Table 4-4: Average water quality in Lake Marriout Sampling site Limits Main Northwest South Fisheries West & Southwest Parameters pH 7-8.5 7.47 7.88 7.8 7.87 7.5 DO 5 1.3 4.2 3.29 4.95 4.9 Turbidity 50 TU 0.76 0.35 0.1 0.35 0.25 * Source: Comprehensive Strategic Development Plan for Lake Marriout Zone

The concentration of dissolved oxygen in all the basins is less the 5 mg/l, which is not in compliance with the limits set by the Law 48/1982 to permit effluent discharges to the lake. The sediment quality was also analyzed by the Lake Marriout Rehabilitation Component. Heavy metals analyses showed the highest concentrations of manganese, iron, zinc and copper in the main basin. The metal concentrations recorded in this report were exceeding the values in previous records

Agricultural drains The main agricultural drains in Alexandria are the Umum, Qalah, West Nubareya, Moheet, Amlak and Amreya Drains. The Qalah drain receives agricultural drainage water from Abis drain; in addition to primary treated effluent for ETP and minor quantities of untreated sewage. The Umum drain flow is mainly agricultural drainage water in addition to minor quantities of untreated sewage. Some of these drains; Umum and Qalah; are in direct hydraulic connection with the Lake Marriout. There are numerous surface water connections between the basins and the drains. These connections include large openings, smaller cuts or breaches in the dykes and small box or pipe culverts.

The main pollutants in the agricultural drains are organic materials reaching the drains from domestic and industrial sources; nutrients from application of fertilizers and discharge of untreated domestic wastewater; heavy metals as a result of industrial discharges or impurities in fertilizers; salts from the percolating irrigation water enriched through evaporation; and pathogens from disposal of human sanitary waste. The water quality of the main drains, discharging directly or indirectly to Lake Marriout, had been analyzed and are as follows:

Table 4-5: Average water quality in Alexandria drains Sampling site Limits Qalah Qalah Moheet drain Amlak Qalah PS Umum Parameters outfall drain drain drain pH 7-8.5 7.16 7.34 7.34 7.6 7.64 8.18 DO 5 0.54 0.43 0.43 1.8 0.01 4.5 Turbidity 50 TU 4.1 2.5 1.3 0.3 0.2 0.2 * Source: Comprehensive Strategic Development Plan for Lake Marriout Zone

The dissolved oxygen in all the drains is lower than the permissible limits in Law 48/1982, which requires that the dissolved oxygen in non fresh water bodies to be not less than 5 mg/l. Mediterranean coast of Alexandria The Environmental Information and Monitoring Program (EIMP), EEAA in cooperation with the DANIDA, performs regular monitoring of the quality of coastal waters of the Mediterranean Sea. The last published report issued in March 2005 for the year 2004 recorded high quantities of general waste, domestic wastewater discharges and algae in a number of beaches in EL Max, El Dekheila, Eastern and Western ports and Abu Qir.

Final Report 61 June 21, 2007 The report records the most severe pollution loads of faecal coliform in El Max, east Abu Qir and El Dekheila shores. The annual average level of bacterial pollution invol. El Max, 3 where the discharge point from Lake Marriout is located, was 886 (for faecal strepto cocci), 5360 (for E. coli) and 2240 (for faecal coliform) times the permissible limits. Significantly high concentrations of ammonia, nitrates, phosphates and chlorophyll were also recorded at El Max. The monitoring points near the seabed in El Max showed significant deficiency in dissolved oxygen, while showed good levels near the water surface.

Air quality

The EEAA publishes a monthly air quality report for Egypt, including Alexandria, on its official web site. In the framework of the EIMP project, the EEAA has installed four stations in Alexandria. These are Alexandria 1, Alexandria 2, Max and Abu Qir monitoring stations. The most recent monitoring information show that the ambient air quality in Alexandria is within the permissible limits in Law 4/1994 and its executive regulations. The air quality measurements in February 2006 are as follows:

Table 4-6: Air quality in Alexandria – February 2006 Station SO2* NO2* PM10* Ozone* CO** BS* Limits 350 / hr 400 / hr 70 / 24 hr 200 / hr 30 / hr 150 / 24 hr 150 / 24 hr 150 / 24 hr 120 / 8 hr 10 / 8 hr 60 / yr 60 / yr Alex 1 7 / 24 hr NM*** NM NM 5 / 8 hr NM Alex 2 NM NM NM 85 NM NM Max 38 / 24 hr 40 / 24 hr NM NM NM 160 / 24 hr Abu Qir NM 42 / 24 hr NM NM NM NM

The air quality measurements in January 2006 are as follows:

Table 4-7: Air quality in Alexandria – January 2006 Station SO2* NO2* PM10* Ozone* CO** BS* Limits 350 / hr 400 / hr 70 / 24 hr 200 / hr 30 / hr 150 / 24 hr 150 / 24 hr 150 / 24 hr 120 / 8 hr 10 / 8 hr 60 / yr 60 / yr Alex 1 7 / 24 hr NM*** NM NM 8 / 8 hr NM Alex 2 NM NM NM 37 / 24 hr NM NM Max 30 / 24 hr 73 / 24 hr NM NM NM 67 / 24 hr Abu Qir NM 135 / 24 hr NM NM NM NM

* Measured in µg/m3 ** Measured in mg/m3 *** NM = Not measured Flora

The vegetation associated with Marriout Lake comprises communities of both aquatic and terrestrial habitats (Tadros and Atta, 1958a). In the aquatic habitat Phragmites australis grows luxuriantly and densely in the shallow water (30-50 cm depth). Inwards, in deeper water, an almost pure population of Eichhornia crassipes is present, and in still deeper parts there are submerged communities of Potamogeton pectinatus associated with Ceratophyllum demersum and Lemna gibba.

Towards the shore of the lake, the soil is saline and halophytic vegetation prevails. The vegetation of this terrestrial habitat can be distinguished into distinct zones. In the submerged soil is a community dominated by Scirpus tuberosus associated with S. litoralis and Typha domingensis. T. domingensis dominates a zone close to that of Phragmites australis and passes gradually into a S. tuberosus community which merges,

Final Report 62 June 21, 2007 as the level of the ground increases so that it become less liable to flooding, into a community dominated by either Salicornia herbacea or by Juncus rigidus. S. vol.herbacea 3 gradually diminishes and is replaced by Salicornia fruticosa which passes gradually to a typical Salicornia fruticosa-Limoniastrum monopetalum zone. The Juncus rigidus community, on the other hand, is replaced by a community codominated by Salicornia fruticosa-Suaeda salsa which passes gradually to a typical S. fruticosa-Limoniastrum monopetalum type. In both situations the ground becomes very dry and saline and a Halocnemum strobilaceum community replaces that of Salicornia-Limoniastrum. On the elevated border of the dry saline beds of the western extension of Lake Marriout is a community dominated by Salsola tetrandra associated with Atriplex halimus, Frankenia revoluta, Limoniastrum monopetalum, Limonium pruinosum and Sphenopus divaricatus.

In the less saline stands of this community Pituranthos tortuosus, Thymelaea hirsuta, Trigonella maritime and other non-halophytic species may grow. This community has also certain affinities with the non-halophytic communities. The Salsola tetrandra zone gradually gives way to a community whose principal constituents are Limoniastrum monopetalum and Lycium europaeum. Associate species include Asphodelus microcarpus, Bassia muricata, Carthamus glaucus, Cutandia dichotoma, Echinops spinosissimus, Filago spathulata, Helianthemum lippii, Ifloga spicata, Launaea nudicaulis, Noaea mucronata, Picris radicata, Plantag albicans, Reaumuria hirtella, Salvia lanigera and Suaeda pruinosa.

Recent studies showed that the water quality and the biodiversity in the lake has been considerably deteriorated due to the discharged of domestic (partially treated or untreated) and industrial waste directly and indirectly to the lake. This has resulted in severe eutrophication to the lake, especially the main basin. Even if secondary treatment is applied, none of the treatment scenarios are expected to significantly alter the nutrients or metal concentration entering the lake from sources other than sewage, the large amounts of raw wastewater from squatters along the contributing drains, the excessive concentration of metals currently in the industrial wastes accompanied with wastewater, and the relatively low removal rates for metals and nutrients achieved by primary or even secondary treatment of any of the wastewater management scenarios are not expected to be changed significantly from the existing situation with respect to water and sediment or eutrophication.

Final Report 63 June 21, 2007 Fisheries in Lake Marriout vol. 3 Silting of the lake bottom and the proliferation of Phragmites and other water reeds are two processes continuously decreasing the volume of fish rearing habitat. Wastewater discharge into the lake since 1988 substantially decreased the fishery by creating areas where water quality does not support commercially important species of fish.

Another significant factor contributing to the depressed status of the fishery is excessive fishing pressure throughout most of the lake. Small-scale commercial fishing remains an important economic activity on the lake. The change in fish catch from year 1986 to 2004 is presented in the following table:

Table 4-8: Annual fish catch from Lake Marriout Year Production (Ton) 1986 8,800 1987 8,100 1988 7,770 1989 3,500 1990 1,900 1991 2,200 19,92 3,500 1993 3,990 1994 3,516 1995 3,466 1996 3,976 1997 4,489 1998 4,521 1999 5,235 2000 6,378 2001 6,200 2002 5,303 2003 4,861 2004 5,100

One additional problematic practice that helps reed proliferation is fishing with cages. Fishermen make these cages from reeds and hence spread the rhizomes of the plant over relatively large areas.

On the other hand, most of the brackish and less tolerant high-valued fish such as Mugil cephalus (L), Labeo niloticus (F), Bagrus bajad (F), Lates niloticus (L), and Barbus bynni (F), decreased or completely disappeared from the lake, however, Tilapia spp. flourished and it represented about 90 % of the total yield in recent years. Also Clarius gariepinus (Buch.) production increased from 900 tons in 1996 to 2,341 tons in 2000. The predominance of Tilapia and increase of Clarius gariepinus production in Lake Marriout is due to their high tolerance to marginal environmental conditions, in terms of oxygen concentrations, high nutrient loading, and variation in salinity.

Solid and hazardous waste management in Alexandria

Solid waste

Solid waste activities in the Alexandria Governorate are managed by the French Operator Onyx, contracted by the Governorate. The scope of work includes:

• Daily collection of domestic waste from households, markets, shops and roads to be transported to the municipal landfill. • Removal of construction debris up to 1 ton/location

Final Report 64 June 21, 2007 • Clean up of streets and roads • Provision of and regular emptying of waste bins in pubic roads vol. 3 • General housekeeping for beaches, gardens, squares, and other public areas • Collection and treatment of medical wastes • Collection of industrial solid wastes • Rehabilitation, operation and maintenance of compost plants • Construction, operation and maintenance of the municipal landfill • Clean up and treatment of the three old dumpsites (Abis, Zayateen and Amreya).

The contract excludes the clean-up of unused lands outside the urban area and waterways. It also excludes the collection and treatment of aqueous and hazardous wastes.

The new municipal landfill is located in El Hammam area, about 40 km. west of Alexandria city. Two composting plants are operating in Alexandria, i.e. the Montaza and Abis Composting Plants. The main composition of municipal solid waste is plastic, paper/cardboard, glass, ferrous metals, bones, rags, aluminium and organic material.

The American Chamber of Commerce has conducted a study on solid waste management in Egypt in 2000. The amount of municipal solid waste generated in Alexandria in the year 1997 is about 4,761 tons per day. This amount breaks down to about 3,648 t/d from urban areas and 1,113 t/d from rural areas.

Hazardous waste

The Nasreya Hazardous Waste Treatment Centre located south of Borg El Arab road is the only hazardous waste treatment and disposal facility in Alexandria. The centre started operations in 2005 and occupies a surface area of 37 feddans. The capacity of the landfill was designed based on the existing demand of the Alexandria Governorate. The centre consists of the following facilities:

• Hazardous waste landfill for inorganic waste • Physical-chemical treatment • Storage facility for organic waste.

Final Report 65 June 21, 2007 The wastes typically received at the landfill are: vol. 3 • Filter cakes from galvanic processes • Insoluble metal salts like hydroxides, sulphides, sulphates, carbonates and phosphates • Inorganic wastes from ceramic industry containing harmful heavy metals • Ash from power stations • Inert oxides • Metallurgical slag • Foundry sand • Asbestos waste • Dry solid heavy metal waste • Contaminated soil, mainly inorganic contaminants • Empty dry packages contaminated with any of the above material

The landfill does not accept cyanides mercury, explosives, radioactive waste, flammable, oxidizing, reactive, organic waste, domestic or hospital waste.

The solidification-stabilisation process is used when the solubility of certain components (e.g. heavy metals) exceeds the landfill criteria.

Inorganic hazardous waste in liquid or sludge form is processed in the physical-chemical treatment plant.

Socio-economic aspects

Squatter settlements Three squatter/informal settlements have been selected for the works: Naga’ El Arab, El Amrawy and El Hadara El Gedida. (Detailed description of the settlements is presented in Annex 10).

El Amrawy El Amrawy is administratively an independent Sheyakha (sub district) of Kesm (district) and Hai (administrative jurisdiction) of Montazah. Therefore it has clearer boundaries and quantitative information on Sheyakha level. Total area of El Amrawy is 2.7 km2 and includes 6 sub areas, namely: El Amrawy El Kobra, El Amrawy El Soghra, Seklam, El Naggareen, Arama and El Falaky. Total number of population has a variety of estimations; however, different estimates are presented in next table.

The land is agricultural land (Agrarian Reform, Forced Army, Endowment and private property) fallowed and subdivided by old inhabitants in the area. For that reason, the area in general has a rural style of life in most areas. Conversely, El Amrawy El Kobra and El Amrawy El Soghra have an urban style of housing with high buildings and active real estate investment. Other sub areas (Seklam, El Naggareen, Arama and El Falaky) still seem to have a more rural style of living and housing. Further social analysis will follow on a comparative basis to highlight socio economic and cultural diversity among three areas.

Final Report 66 June 21, 2007 El Hadara El Gedida The case of El Hadara El Gedida is greatly different. It is not administrativelyvol. an 3 independent sub district, but is affiliated to three districts (Sidi Gaber, Bab Sharqi and Moharam Beck) under the administrative authority of Hai Wasat. Therefore, accurate data on population and demographic characteristics is not always available. Total area of El Hadara El Gedida is 0.08 km2 and includes seven sub areas, namely: El Rahma, El Nozha, El Kholy, Gamee, Lakem & Barawy, El Sobheya and El Deressa. Available estimates of population count vary between 66461 and 72000 as shown in next table.

The land is agricultural land (Agrarian Reform, and Governorate and State property) fallowed and subdivided by old inhabitants in the area. The seven sub areas kept growing until merged in one area. Again, some sub areas, such as El Kholy and El Sobheya have an urban style of housing with high buildings, where other sub areas, such as El Rahma, El Nozha and El Deressa still have a rural style of living and housing. Further social analysis will follow on a comparative basis to highlight socio economic and cultural diversity among three areas.

Naga’ El Arab Unlike the case of El Amrawy and El Hadara El Gedida, Naga’ El Arab is administratively a part of Sheyakha (sub district) El Metras; affiliated to Kesm (district) Mina El Bassal and Hai (administrative jurisdiction) Gharb (West). Total area of Naga’ El Arab is 0.227 km2 and officially includes 3 sub areas, namely: El Metras, Naga’ El Arab and Esso. However, field observations may possibly divide Naga’ El Arab sub area into three sub areas, as follows: Naga’ El Arab El Adeem (old Naga’ El Arab), Naga’ El Arab El Westani (middle Naga’ El Arab) and Naga’ El Arab El Gedeed (new Naga’ El Arab). This sub division would add up to five sub areas, not three. Total number of population has a variety of estimations; however, different estimates are presented in next table.

The land is State property subdivided and transacted illegally by old inhabitants. All sub areas represent a peri-urban Interface, in terms of housing and living styles. Some sub areas are have better physical conditions, such as El Naga’ El Gedeed, some are more deprived such as el Naga’ El Adeem and El Naga’ El Westani. Further social analysis will follow on a comparative basis to highlight socio economic and cultural diversity among three areas.

Table 4-9: Population of the three settlements Different total population estimates by source El Amrawy El Hadara El Naga’ El Arab Gedida

Alexandria Population Census, 2006 36,373 NA 114,043 Information Office, Alexandria Governorate, 2006 36,590 NA 116,386 Seoudy based on Information Office, 2005 70,000 66,461 17,608 El Helbawy, PRA, 2005 70,000 72,000 16,000 SFD & SPAAC, Baseline Study, 2006 300,000 NA 17,151

Final Report 67 June 21, 2007 Vulnerability context of residents Baseline results indicate the vast variance in the economic conditions within familiesvol. of3 the same sub area (plot) in the same area. In each area, there are families that are reasonably well off and families who are in medium financial conditions, as well as poor and very poor families who are obligated to put their children, girls or boys to work if opportunity arises. Though averages of monthly income of surveyed households seem comparable, lowest (50 EGP) and highest income is represented in El Amrawy.

Some families suffer from housing problems such as wall cracks, sagging and leaking roof ceilings, or limited living space and crowdedness. Some families in the three areas expressed the need to improve their housing conditions like fixing the walls and ceilings, fixing the stairs and building entrance, painting walls and ceilings, and/or fixing floors. Almost one half of the families of the three areas who need housing improvements would go ahead with the needed improvements if they had the opportunity to pay in installments. The other half most probably have limited financial resources to be able to utilize such an option. These families need to first improve their financial status before considering making such improvements in their homes. Hence it is recommended that opportunities for making the needed improvements through paying by installments be offered to those who can afford it.

It is also recommended that the Hai (district) housing engineers inspect the building conditions of houses especially buildings that owners do not reside in. It is known that if owners do not reside in the building with tenants, they are less likely to invest in improvements highly needed by tenants.

Table 4-10: Vulnerability in the three settlements Vulnerability context El Amrawy El Hadara El Naga’ El Arab Gedida

Average number of household members (person) 4.6 4.5 5.5 Lowest number of household members (person) 2 1 1 Highest number of household members (person) 16 23 15 Average household monthly income (EGP) 729.4 725.8 657.1 Lowest household monthly income (EGP) 50 132 150 Highest household monthly income (EGP) 5,000 3,500 3,000

Evaluation of the Infrastructure Needs Some households in the three areas that are not connected to the Government sewage system. This problem is faced by 20 percent of Naga’ El Arab households and 91 percent of those that suffer from this condition gave it a rating of one to three priority of the problems they face. Al Amrawy had only 3.4% of households that were not connected and 44 percent of them considered it a top priority problem, while only one family at El Hadara El Gedida declared not being connected to the sewage system. However, the overflow of sewage in the streets was a more serious problem to almost half of the households in Al Amrawy and El Hadara El Gedida and two thirds of Naga’ El Arab households.

Only a few households in Naga’ El Arab are not connected to the water system and their source of potable water is public taps or they buy water. However, around half of El Hadara El Gedida households (53%) and two fifths of El Amrawy households as compared to only 15 percent of Naga’ El Arab households complain from frequent water cuts. Also those who live in high rise buildings suffer from low water pressure.

Final Report 68 June 21, 2007 Furthermore, 18 percent of Naga’ El Arab households complain from difficulty in installing water meters. Water quality was also an issue of complaint for 27 percent of householdsvol. 3 in El Amrawy that declared facing problems related to potable water, while smaller percentages in El Hadara El Gedida and Naga’ El Arab had the same complaint. Water quality was also raised by respondents when discussing local conditions that could affect the health of the local population; the respondents feared its effect on their health and health of children as well as requesting improvement of this problem to protect health of residents in the area.

Additionally, some families in the three areas complained from problems with electricity. In Naga’ El Arab a few families are not even officially connected to electricity supply. Also complaints from electricity cuts were mentioned from families in the three areas with higher percentages in Naga’ El Arab. Other physical infrastructural complaints of the three areas were related to lack of street lighting which, along with the unpaved streets and side walks that cause dust to pollute the air, is a problem for half the families. Almost four fifths of El Hadara El Gedida families (79%) suffer from unpaved streets as well as more than half (57%) of Naga’ El Arab families and around half (49%) of Al Amrawy families. Additionally, around half of the families in the three areas complained from lack of street storm drains as Alexandria is the one city in Egypt that has several rain storms during the winter season.

In light of baseline findings, it was necessary to investigate residents’ willingness to pay for infrastructure services to better understand their situation in this regard. The survey carried out for this assessment was qualitative, with in-depth interviews and focus group discussions, which implies that the information received gives no more than an indication on the feelings and attitudes of the surveyed population. For more detailed information in relations between different opinions (i.e. between the willingness to pay (WTP) and the willingness to legalize) a representative quantitative survey is required. Yet, most of the stakeholders taking part in the interviews expressed clear opposition to pay.

Reasons can be summarized as follows: “Infrastructure services are already available; however, quality of governmental services is very bad, especially sanitation”, “Infrastructure was installed by the community; why should we pay to the Government”, “Sanitation fees are already charged on water bills”, “Meters are already installed for each building, why should we pay again for personal meters in each unit”. “Paying for services is unacceptable, I already pay taxes”, and “fees charged by the Government are excessive”

Population next to Lake Marriout This section describes the existing socio-economic conditions of fishermen communities in the area. There are no specific studies or reports addressing population living next to the Lake. However, based on field observations and key informants interviews, three main social groups are identified, namely: fishermen, poorer communities and scattered land divisions.

There is no denying the fact that the fishing community as a whole forms the poorest and most disadvantaged group in the target area. The fishermen communities are mainly located in inaccessible areas from land, as the infrastructure is limited or non-existent. The problems in reaching these communities with services and interventions have

Final Report 69 June 21, 2007 developmental, economic and social impacts. Fishing cannot be carried out throughout the year, and in the idle periods they lack alternative employment opportunities.vol. Their 3 socioeconomic development is limited.

In Egypt fishing activities are carried out almost entirely by males. Women are only concerned with helping the fishermen in preparations for their trips and in helping them to handle the caught of the fish. In rare cases, women are involved in small scale fish trading or retailing. In Lake Marriout, further degradation of water quality and fish production is significantly affecting people’s livelihoods. Fishermen rely both on the fishery and vegetation to support their living, as fishing is the main source of income for the majority of fishermen. Vegetation is used for feeding livestock, making fuel for cooking, and as thatching for living quarters. The fishing community in Lake Marriout is comprised of approximately 6,000 fishermen and consists of a regulated hierarchical structure.

This hierarchical structure consists of a head fisherman for the entire Lake and a head fisherman for each of the four basins. Each fisherman and/or family has fishing rights assigned specified areas and are not free to fish anywhere in the lake. Estimates say that the number of fishermen utilizing the main basin exceeds 1,500. Most fishermen live in an area called Maawa El Sayadeen (Fishermen shelter).

The baseline study carried out by SFD shows that 61.85% of the population is aged between 15 - 55 years. This is considered as the typical range for employment. It is evident that the unemployment rate among those eligible for work is high. The more fortunate residents who are working have very low income and are only involved in small/trivial marginal vocations (hand crafts, support staff in local governmental agencies, carpentry, and labour for nearby factories.

Other demographical characteristics were also specified, namely:

• High illiteracy rates (especially that of females). • Poor health services and high mortality rates. • High crime rates Tendency to marry young and have large families, as stated before.

Some poorer communities such as Naga' El Arab with a total population of 17,608 inhabitants, are directly exposed to Lake Marriout. The area started to be inhabited in the early fifties, when they filled parts of the Lake and kept expanding by building informal shelters and buildings. Most of them used to fish in the Lake and manufacture/maintain fishing boats.

There is no official data available on the number or size of the existing scattered informal settlements. It was stressed during interviews with key informants that these communities are most probably not registered officially, and studies present them as in small sizes and limited distribution. Buildings in form of housing units or small shops were mostly built independently.

Final Report 70 June 21, 2007 vol. 3 potential environmental and social impacts General

This section presents an analysis of the potential positive and negative impacts of the proposed project activities. In evaluating the potential impacts of the project, the checklists provided in the Environmental Assessment Sourcebook of the World Bank (Technical Paper Number 140, Volume II: Sectoral Guidelines, 1991) were used. The following sections list only the main impacts identified, specifying these as much as possible according to the various (infrastructural) developments anticipated.

Anticipated positive impacts

Priority Economic Infrastructure in Support of Local Economic Development (Component 1)

Development of land surrounding Lake Marriout through public-private partnership and leveraging private sector involvement has positive social impacts which can be summarized as follows:

• Improved infrastructure, for mixed land development and community purposes will increase the possibility for people in the target communities to take better advantage of the opportunities offered by the City of Alexandria. • Installation of electrical power supply and telephone lines will improve the possibility for the target communities to interact and be part of the wider communities. • The construction of a sewage and water distribution network connecting it to the existing public networks will improve the living standards of many in the target communities. • Providing public services and utilities on several levels is expected to attract investors and newcomers to the area. • The general improvement of the land area surrounding Lake Marriout will attract investors, by this further private sector driven development.

The main positive social impacts of rehabilitating/reconstructing the vital roads in Alexandria may be summarized as follows:

• Rehabilitation and reconstruction of roads is expected to improve transportation, enhance productivity of the manufacturing areas through reduced travel time, and develop trade activities. This as such implies direct economic benefits on personal, local, regional and national levels. • Providing better infrastructure and services will generally improve people’s health, especially increasing the accessibility to service infrastructures. • Streetlights may increase the level of public safety both in terms of road accidents and criminality • Local job opportunities could emerge as the targeted area develops. • Improving infrastructure and related services on several levels is expected to attract investors and newcomers to the area.

Final Report 71 June 21, 2007 • Roads constitute an important part of the local traffic/access, and thus relieve the Cairo-Alexandria highway. vol. 3

Parallel Activity to Component 1 by GOE: enhancing wastewater treatment Potential positive environmental and social impacts are expected to be as follows:

• Reduction of the pollution load of effluents from Eastern and WTPs discharged to the Qalah drain and to the Lake Marriout respectively. Hence, contributing, in parallel with other projects as EPAP II and MWRI, to the improvement of the water quality of the Lake and ultimately increasing the natural habitats and fish production in the Lake in terms of productivity and diversity. • Reducing harmful waste into the lake area will positively affect the quality and quantity of the fish caught and therefore will improve the livelihood of the fishermen communities. • Fishing is a major source of national income for Egypt, and improved water quality in Lake Marriout will potentially lead to increase of fishing production, which will contribute to local as well as national economic development. • Health conditions of the fishermen and communities around the lake will improve once exposure to levels of harmful waste is reduced. • Potable water and proper sanitation will increase the level of health and welfare of poorer communities. • Provision of additional water resources to Alexandria due to the improved quality of treated wastewater permitting reuse. • Selling enhanced primary treated wastewater could lead to an increase in economic revenues for the Governorate of Alexandria. • Improvement in the wastewater collection system and the water quality of drains in eastern Alexandria, which will result in improving the public health of inhabitants in the project area. • Improvement in the sludge management system at the Eastern and WTPs, therefore, reducing the occupational health and safety hazards to workers. • Employment can be generated from the project activities. • Improving water quality in Lake Marriout and El-Qalah drain could encourage investments in the area by the tourism industry. • Reducing the odours coming from Lake Marriout, and from the el- Qalah drain, affects the demand and cost of the land for future urban development. Besides improving people’s quality of life, this is also likely to have positive impacts on investment and tourism development in the area.

Improve Local Investment Climate (Component 2)

Component 2 has potentials for several positive impacts on the social conditions of investors and people living in the project target areas. Positive social impacts of project activities can be summarized as follows:

Final Report 72 June 21, 2007 • Reducing the regulatory burden on the private sector through vol.a 3 comprehensive restructuring of all relevant procedures facing business start-ups with the objective of reducing cost, time and administration steps of registration and licensing would lead to encouraging both local and foreign investment in the Governorate. • The significant decrease in time, costs and steps of procedures (also known as red tape) for start-up of businesses will accelerate the completion of the business cycle and hence, the flow of profits. • Promote certain sectors for investment, in terms of cluster and sector development. • Exploit the exceptional location and geographical characteristics of the Alexandria Industrial zones. • There’s an implicit recognition of North Mergham as an industrial area partially because of its location near City, ports and airports, as well as being well served by Cairo-Alex regional highway, should serve as ground for extending all necessary restructuring efforts to maximize investors’ benefit, and facilitate their operations. More prospect investors would therefore group into clusters. • Existing investors will be able to expand their operations using land as collateral since it would be legally registered in their names. • Reform in investment legislations as stipulated by the General Authority for Investment and free zones will generally promote a feeling of security that will act as enticement for more investment in the private sector. • Buy-in and belief in the legalization system and overcoming the existing problems of maintenance of infrastructure at the Amreya district (to which they are administratively affiliated), and in the case of North Mergham, limited infrastructure was initially provided by the government. • PPP in the expenditures related to the preparation and management of industrial zones leads to cost reduction for the governorate, enabling them to invest in other pressing issues like health and education services. • PSP in the management and development of industrial areas will mobilize expertise and competence of private sector operations and strategies to help capacity building • Businesses can discuss cluster development strategies and bring their inputs and insights to the table, thus helping onward and foreign direct investment.

Urban Upgrading of Squatter Settlements (Component 3)

Positive environmental and social impacts of increasing access to infrastructure and services are:

• Eliminating uncontrolled discharge of wastewater in project area, hence, improving the public health in the areas and preventing pollution of surface and ground water bodies from illegal discharge of domestic wastewater. • Improve solid waste management practices within the project areas, which will result in improving the public health of inhabitants.

Final Report 73 June 21, 2007 • Investment in economic infrastructures and improvement and provision of water to squatter settlements by increasing the production andvol. 3 volume available for districts, will improve people’s health, as well as their quality of life and livelihoods. • Economic and social development is expected to be reflected socio- culturally, in terms of decreasing unemployment and crime rates, as well as rehabilitation of social values and aesthetics. • Providing support programs with urban upgrading for the integration of squatter settlements, encouraging community systems of management and involvement of small private contractors, will be a pilot for replication in other squatter settlement in Alexandria and other Governorates as well. • Building the institutional capacity of small local companies, NGOs and institutional partners and the creation of adequate structures for the set up, follow-up and evaluation will institutionalize systems for successive urban upgrading. This approach has various positive aspects, namely: community mobilization and participation, inclusiveness of all different stakeholders and vulnerable groups, sustainability, replicability and decentralization.

Technical support and project operation (Component 4)

The overall positive environmental and social impacts of component 4 are:

• The Master Plan aims to improve the land use in Alexandria, therefore, preventing the uncontrolled encroachments by informal and squatter settlements and uncontrolled industrial developments, which will mitigate environmental impacts from these activities (wastewater discharges, solid waste management, use of land and resources). • Establishment of solid regulatory framework for managing local economic development will ensure promoting urban upgrading and tenure security. • Strengthening and developing the private sector through improving the local business environment. • Development and strengthening of the food processing, tourism and textiles and garments sectors • Ensuring the effective and efficient implementation of the ADP components in order to achieve the set results and objectives. • Establishing a monitoring and evaluation system and careful monitoring and enforcement of ESMP to ensure continuous optimum implementation and continuous improvement. • Guaranteeing the sustainability of the project through building the capacities of key institutions and human resources.

Final Report 74 June 21, 2007 vol. 3 Potential negative environmental and social impacts from ADP

Potential environmental and social impacts from components including civil works

Table 5-1: Potential negative impacts from Components 1.1 and 1.2

Impact Impact analysis Impact rating Construction phase Encroachment on private property during project implementation, requiring resettlement Direct, short-term, local, potential liabilities (property owners) No. of units will be assessed based on detailed design

Air pollution by dust generated from excavation of soil during construction and during transportation of imported/exported soil from Direct, local, short-term, sensitive receptors Medium or to the site. Air pollution by emissions from vehicles and construction equipment. Direct, local, short-term, sensitive receptors Medium Noise pollution from construction vehicles and machinery Direct, local, short-term, sensitive receptors Medium Disposal of solid waste generated from construction activities Direct, local, short-term, sensitive receptors Medium Soil/water contamination from accidental leakage of lubricating oil or any chemical used in construction Direct, local, short-term, sensitive receptor Medium

Occupational health and safety of workers during construction activities Direct, local, short-term Medium Impact on public health and safety during the construction activities. Direct, local, short-term, High Traffic congestions and nuisance to road users during construction Direct, local, short-term, Medium Operation phase Noise and public safety near residential areas at Al Sad Al Aly road Direct, local, long-term High

Storm water management Direct, local, long-term Medium Public safety is at risk from the roads trafficked by trucks serving the oil and petrochemical industries Direct, local, long-term Medium

Final Report - 75 - June 21, 2007 vol. 3

Table 5-2: Potential negative environmental impacts from Parallel Activities to Component 1 Impact Impact analysis Impact rating

Construction phase Excavation of potentially contaminated surface sediments from lake and drain dredging Direct, permanent, regional Medium Water pollution from accidental discharge of oils and fuel from equipment during dredging of the lake and drains Direct, local, short-term Medium Increased turbidity in the water bodies during dredging Direct. Short-term, local Low Air pollution by dust generated from excavation of soil during trenching and during transportation of imported/exported soil from or Direct, short-term, local Medium to the site. Air pollution by emissions (flue gases and VOCs) from vehicles and construction equipment. Direct, short-term, local Low Noise pollution from construction vehicles and machinery Direct, short-term, local Low Solid waste from construction activities Direct, local, long-term Medium Soil contamination from accidental leakage of lubricating oil or any chemical used in the process Direct, short-term, local Medium Refilling excavated trenches is normally using clean soil free of any rocks. It is expected to import soil from quarries for this process. Use of resources is limited to the excavated areas Low Occupational health and safety of workers during construction activities Direct, short-term, local Medium Employment opportunities are not distributed equitably to the local population Direct, short-term, local Medium Operations phase Industrial effluents affecting the treatment process Direct, long-term, regional High Health and environmental risks associated with discharge and reuse of treated effluent in irrigation or fish farming Direct, local, short-term, sensitive receptor Medium Disposal of sludge from treatment processes Direct, might result in non compliance, long-term Medium Odour and insects at the 9N site Direct, long-term, local Low Increased incidence of water related diseases in wastewater reuse scheme Direct, long-term, regional Medium Odour at the Eastern and Western WWTPs Direct, long-term, local Medium Nuisance during sludge transportation Direct, short-term, local Low Sludge quality and the risk of public and farmers acquiring infection Direct, long-term, regional High Risk of groundwater pollution at 9N sludge disposal site Direct, long-term, local Medium Pollution of Lake Marriout from failure of dykes of the ponds at the Western WWTP Indirect, short-term, regional Medium Employment opportunities are not distributed equitably to the local population Direct, long-term, local Medium

Table 5-3: Potential negative environmental and social impacts from Component 3 Impact Impact analysis Impact rating Construction phase Encroachment on private property during project implementation Direct, short-term, local, potential liabilities (property No. of units will be owners) assessed based on detailed design Clogging of natural drainage channels during roads rehabilitation in settlements Direct, long-term, regional Medium Risk of damage to unknown archaeological sites Indirect, no known sites in the area Low

Final Report - 76 - June 21, 2007 vol. 3

Impact Impact analysis Impact rating Cross contamination sewage and water lines due to pressure differentials and leaks) Indirect, long-term, regional Medium Site Selection for proposed buildings such as post offices and medical centers Indirect, long-term, local Medium Air pollution by dust generated from excavation of soil during trenching, demolition of buildings and during transportation of Direct, short-term, local, sensitive receptor High imported/exported soil from or to the site. (residential areas) Air pollution by emissions from vehicles and construction equipment. Direct, short-term, local, sensitive receptor (residential areas) Medium

Noise pollution from dewatering pumps, construction vehicles and machinery Direct, short-term, local, sensitive receptor (residential areas) Medium

Noise pollution from construction vehicles and machinery Direct, short-term, local, sensitive receptor Medium (residential areas) Disposal of removed soil from trenches and other solid waste Direct, short-term, local, sensitive receptor Medium (residential areas) Soil/water contamination from accidental leakage of lubricating oil or any chemical used in construction Direct, short-term, local, sensitive receptor Medium (residential areas) Refilling excavated trenches is normally using clean soil free of any rocks. It is expected to import soil from quarries for this process. Use of resources is limited to the excavated areas Low Occupational health and safety of workers during construction activities Direct, short-term, local, Medium Impact on public health and safety during the construction activities. E.g. possible injuries to inhabitants from tripling and falling in Direct, short-term, local, potential liabilities, sensitive High trenches receptor (residential areas) Traffic congestions and nuisance to road users during construction Direct, short-term, local, sensitive receptor (residential area) Medium

Operation phase

Storm water management for roads rehabilitation Medium The cost of installing water meters is too high for some families Direct, short-term, local Medium The cost of installing water meters is too high for some families Direct, short-term, local, Medium Disease transmission through infectious waste sharps and contaminated water. Chemical and toxic threats through chemical and Direct, long-term, local, pharmaceutical exposure for medical centers Medium

Spread of disease and environmental impact from planning new medical centers Direct, long-term, local, Medium

Potential environmental and social impacts from components including civil works

Table 5-4: Potential impacts from Components not including civil works Impact Impact analysis Impact rating Component 2.1 Reducing time and steps of business start-up New job opportunities resulting from investors attracted to the area do not employ local labour Direct, local, short-term, Medium

Final Report - 77 - June 21, 2007 vol. 3 Analysis of project alternatives Identification of alternatives

Alternatives have been analyzed at aggregate level (the total project under consideration) as well as at the level of components. Components have been classified into two main categories:

• Components including Works: Component 1 including its subcomponents and Component 3 Urban upgrading of squatter and informal settlements. • Components including supply of services and goods: Component 2 including all its subcomponents and Component 4 and all its sub components.

Alternatives have subsequently reviewed for the following activities including Works:

• Development of the area surrounding Lake Marriout (Component 1.1) • Reconstruction/rehabilitation of roads (Components 1.2) • Increasing access to infrastructure and services (Component 3) • Upgrading the Eastern and Western WWTPs (Parallel activity to Component 1 financed fully by GOE)

Alternatives for each of these activities shall be analyzed for:

• The no project alternative for each activity • The alternatives for activities where applicable.

Alternative analysis for the proposed project

Two alternatives to the proposed Project have been evaluated, i.e. the current situation (the “no-project” alternative) and the alternative of separate implementation the project components.

The “no project” alternative to the proposed Project would result in depriving Alexandria Governorate from generating significant revenues that would be utilized in improving the living conditions of the Alexandrian citizens and the level of municipal services provided as well as the upgrading of deteriorated districts and squatter settlements. If no enhancement of wastewater treatment (Parallel Activity to component 1) took place, this will result in continued deterioration of the water quality of Lake Marriout due to the discharge of primary treated wastewater to it. The deterioration of Lake Marriout has already resulted in limiting the opportunities of using this important water resource as a basis for sustainable development in the area. The uncontrolled urban and industrial development around the Lake has already resulted into increasing the adverse environmental impacts due to the rising number of squatters and uncontrolled industrial activities in the area.

These settlements will remain with inadequate water supply and sewerage. Severe adverse environmental and health conditions would increase and impact negative on public health and economic potential of these areas. Air quality will deteriorate due to the congested critical access roads, in particular along the Alexandria Desert Road.

Final Report - 78 - June 21, 2007 The cancellation of investments to develop the area and to improve the businessvol. climate 3 will impact negatively on the economic development of the target area and enhance the negative interaction between poverty and environmental degradation in the target areas.

As a result the no-project alternative is not considered to be a viable or acceptable alternative to the proposed project.

The second alternative of considering each component separately on its own and its own merits will not yield the same benefits as the integrated approach adopted in this Project. The improvement of the wastewater disposal system (as part of the parallel activity undertaken by GOE) will not improve the water quality in Lake Marriout unless the area around the Lake is developed in a sustainable manner to ensure continual improvement of the Lake Marriout environment. On the other hand, the area surrounding the lake cannot be developed except when the environmental conditions of the lake improve. The overall sustainable development of Alexandria requires improving the business climate to attract investors together with providing basic services and infrastructure, especially to the poor residents in squatter settlements to ensure social security and improve the living and health conditions of these communities.

Alternatives to Land Development Lake Marriout (Component 1.1)

Three alternatives were investigated for the area surrounding Lake Marriout. These alternatives are compared in the following table:

Table 6-1: Comparison of the land development alternatives Alternatives Proposed land use Financial benefits Green areas and Roads water activities Alternative 1 Land use for all alternatives will 338.36 feddans of parcels to 66.20 feddans 94.52 feddans be limited to community sell Alternative 2 services, tourism facilities, 380.58 feddans of parcels to 95.60 feddans. 48.57 feddans residential compounds, business sell. Therefore, providing parks, commercial centers, more financial resources for exhibition and fair ground, the Governorate that can be recreational facilities, public used to improve health and services, educational facilities, education services Alternative 3 parks and open areas. No 358.41 feddans of parcels to 81.88 feddans 55.48 feddans industrial activities take place in sell this area

Alternative 2 offers more land parcels to sell as well as the lowest percentage of roads. It also has the highest percentage of open spaces, green areas, theme parks and pond. From the above-mentioned, the selected alternative (Alternative 2) is the most appropriate, cost efficient and environmentally friendly.

Alternatives to Rehabilitation critical access roads (Component 1.2)

The existing conditions of the selected roads for rehabilitation are described details in section 3 of the report. El Sad El Aly and Om Zeghiou suffer high traffic congestions at certain locations where the road narrows down in restricted residential areas resulting, together with activities in the area, in a significant increase in travel time.

Final Report - 79 - June 21, 2007 It is important to note that the ADP project will not construct new roads. The selected roads will be rehabilitated to be suitable as access roads between the industrial vol.areas and 3 the ports of Alexandria.

The only available alternative for the congestion area at El Sad El Aly road is to widen the road through acquisition of land from the Alexandria Petroleum Company.

For Om Zeghiou road, there are two alternative to solve the problem of the congestion area. The two alternatives involve acquisition of land from El Nasr Company, where a wide road (70m ROW) already exists. The first alternative is to bypass totally the congested residential area through this road. The second alternative is to use the road in El Nasr Company for one direction, while the road in congested residential area is used for the other direction. The technical evaluation of the two alternatives have been investigated. It is recommended, if technically feasible, to selected first alternative which will prevent the noise impact on population of the residential areas.

Alternative analysis to urban upgrading of squatter and informal settlements (Component 3)

The main activities carried out in this component are the construction of wastewater collection systems, rehabilitation of water distribution systems, roads rehabilitation, in addition to socio-economic services including solid waste collection. The project is based on the demands of the communities in the three squatter settlements and tackles the most urgent environmental and social problems in these areas.

Wastewater Collection The project involves the extension of wastewater collection system to population in Naga’ El Arab and El Amrawy that are not served. Wastewater produced from households, commercial, tourist, services and commercial activities contains numerous pollutants that can affect the quality of water bodies and the public health. The main pollutants are:

• Biological pollutants such as parasites, pathogens and viruses. The higher concentration of pathogens, the greater the probability that health problems will develop. Pathogens affecting humans, animals and plants can survive long period of times in wastewater. • Trace metals such as heavy metals, which cannot be broken down and can accumulate in the food chain of the ecosystem. • Oxygen demanding substances, which deplete the available oxygen and decrease biological activities in surface waters. • Nutrients such as nitrates and phosphorus. Excess nitrate in water can convert to toxic nitrite. Water bodies and streams receiving raw wastes turn eutrophic as increased phosphorus contents accelerate the growth of bacteria and algae in water, causing aesthetic problems and decreasing dissolved oxygen in water, leading to severe deterioration in the water body, especially in lakes. • Oil and grease. Many petrochemical substances are considered carcinogenic and could affect life expectancies of population. Excessive amounts of oil and grease can affect the fish population sizes and species diversity. Floating oil and grease also prevent the penetration of sun, inhibiting photosynthesis and affect phytoplankton

Final Report - 80 - June 21, 2007 El Amrawy and Naga’ El Arab are supplied with piped potable water, resulting in increased water consumption and consequently increased wastewater vol.produced. 3 Wastewater produced if not properly collected, then treated, wastewater will be discharged to surface water bodies (directly or indirectly) affecting the water quality of these bodies or accumulate in small ponds in residential areas resulting in nuisance and public health concerns.

In "no project" alternative no measures are taken to improve the current situation for wastewater collection. Consequently, the present situation remains with the associated environmental and social impacts. Therefore, this alternative is discounted.

Road pavement The project involves paving roads in the three squatter settlements with rainwater drainage. The residents of the settlements suffer from the dust generated from traffic on the unpaved roads and from accumulation of rainwater especially in the winter causing nuisance to residents and potential for water borne diseases.

In "no project" alternative no measures are taken to improve the current situation. Consequently, the present situation remains with the associated environmental and social impacts. Therefore, this alternative is discounted.

Solid waste collection The project includes solid waste management services for the three squatter settlements. One of the main problems in the three settlements, is the insufficient solid waste collection, resulting in accumulation of waste in the vacant lands (three settlements) and on the bank of the Lake Marriout (Naga’ El Arab). The existing situation resulted in higher public health hazards and pollution of the Lake.

From the above mentioned, the project is essential for the communities in the three squatter settlements, and will significantly contribute to improving the health conditions of the residents in these areas.

Alternatives to Parallel Activity to component 1 (improving wastewater treatment system)

Currently, the Eastern (ETP) and Western Wastewater Treatment Plant (WTP) produce primary treated wastewater discharged to the Qalah drain and to Lake Marriout respectively. Studies performed on the Lake and the Qalah drain showed that primary treated wastewater from the WTP and ETP and industrial wastewater are of the main reasons for the deteriorated water quality of the Lake Marriout, which resulted in reduced fish production and other environmental and social impacts in Alexandria. The low quality water of Lake Marriout discharged to the sea at El Max has contributed in the increased faecal coliform and nutrients in the sea water.

In "no project" alternative no measures are taken to improve the current situation for wastewater treatment. Consequently, the present situation remains with the associated environmental and social impacts. Therefore, this alternative is discounted.

Final Report - 81 - June 21, 2007 Under a secondary treatment alternative, the WWTPs will be upgraded (in a parallelvol. activity, 3 to be financed by the Government of Egypt). The most likely scenario under consideration by the GOE would be based on an activated sludge type of sewage treatment. The selection criteria is based on (a) the ability to reach the effluent standards, stipulated by the Egyptian standards and international conventions, as explained above, (b) the ability to re-use the treated effluent in agriculture (if necessary and if deemed appropriate by the competent administrative authority). This process will result in the removal of nematodes to less than one percent of the concentration in the raw wastewater entering the treatment plant.

The etrtiary treatment level provides the best water quality permitting re-use of treated effluents in different purposes such as irrigation and aquaculture, but would be costly to implement after the utilization of an activated sludge method of treatment. A summary of the environmental impacts of wastewater treatment processes is given in Table 6.2.

Table 6.2: Comparison of Environmental Impacts of Wastewater Treatment Alternatives Parameter Primary Secondary Tertiary Impact on health Negative-High Negative-Medium Very low Discharge of effluent in water bodies Negative-High Negative-Medium Very Low Reuse of effluent in agriculture Positive-Low Positive-Medium Positive-High Amount of sludge produced Negative-Medium Negative-Medium Negative – High Reuse of sludge in agriculture (amount) Positive-Medium Positive-Medium Positive-High Reuse of sludge in agriculture (quality) Positive-high Positive-high Positive-medium Impact on soil Low Low Low Odour generation Negative-High Negative-Medium Low Noise generation Low Low Low

Final Report - 82 - June 21, 2007 vol. 3 Environmental and social management Plan Introduction

The principal purpose of the Environmental and Social Management Plan (ESMP) is to present a set of mitigation, monitoring, and institutional measures to be taken during planning and design, construction, operation and maintenance of the various components and sub-components. The objective of these measures is to eliminate adverse environmental and social impacts, offset them, or reduce them to acceptable levels.

The Plan includes practical actions needed to implement these measures. Some of these measures could be readily incorporated into: (a) construction specifications and drawings for inclusion in tender documents; and (b) operation and maintenance manuals. The Environmental and Social Management Plan (ESMP) contains the following topics:

• Summary of impacts: The predicted adverse environmental and social impacts for which mitigation is required are identified and briefly summarized. • Mitigation measures: Feasible and cost effective measures to reduce potentially significant adverse environmental and social impacts to acceptable levels are defined. The table of mitigation measures contains the timing, frequency and duration of the measures. • Monitoring measures: Activities to monitor the effectiveness of the defined mitigation measures are defined. These monitoring activities will allow for any additional remedial measures to be undertaken if mitigation measures are inadequate or the impacts have been underestimated within the EIA report, in particular where the results are not in compliance with the obtained permits, national standards and World Bank Group requirements and guidelines. • Institutional measures: Responsibilities for mitigation and monitoring will be clearly defined as well as arrangements for co-ordination between the various actors responsible for mitigation. Furthermore, training and capacity building requirements are presented. • Costs estimates and sources of funds: For initial investment and recurring expenses for implementing of measures contained in the ESMP, cost estimates are presented, in order to allow for integration into the total project costs.

The components of the ADP project are classified into the following two categories: • Category 1: Projects that comprise Works and require supervision from the PMU during implementation: components 1 and 3. • Category 2: Projects involving provision of goods and services: components 2 and 4.

Final Report - 83 - June 21, 2007 Summary of impacts vol. 3 Potential negative environmental and social impacts that have been identified are summarized in the following table:

Table 7-1: Potential high and medium impacts from ADP project Comp. Phase Impact 1.1 Implementation Accumulated construction / demolition leftovers on site Impacts from general construction activities Operation Water pollution from improper disposal of wastewater Air pollution from activities on the developed land Solid waste from activities on the developed land Water pollution from activities in the developed land 1.2 Construction Impacts from general construction activities Possibility of resettlement for some residents Operation Noise and public safety near residential areas at Al Sad Al Aly road Storm water management Public safety at risk from the roads trafficked by trucks serving the oil and petrochemical industries

2.1 Project New job opportunities resulting from investors attracted to the area do not employ local labour Implementation 3 Construction Clogging of natural drainage channels Encroachment on private property Risk of damage to unknown archaeological sites Cross contamination sewage and water lines due to pressure differentials and leaks) Site Selection for proposed buildings such as post offices and medical centers Impacts from general construction activities Possibility of resettlement for some residents Operation Storm water management for roads rehabilitation The cost of installing water meters is too high for some families Disease transmission through infectious waste sharps and contaminated water. Chemical and toxic threats through chemical and pharmaceutical exposure for medical centers Spread of disease and environmental impact from planning new medical centers

Mitigation measures

For each of the identified impacts specific mitigation measures may be defined. The general rule in designing such measures is:

• Avoidance of major impacts: major impacts are generally considered unacceptable, certainly ones that would endure into the long-term or extend over a large area ; and • Reduction of major and moderate Impacts to as low as reasonably practicable (ALARP) by planning, designing and controlling mitigation measures. This implies that mitigation measures will be applied up until the limitations of cost-effectiveness and practical application are reached. The limitations are established by best international practice. • Implementation of good contractor practices for impacts rated as minor, in order to ensure that impacts are managed within good reason.

Selection of contractor For all components involving works, the ability of contractors to meet all the Health, Safety, Environment and Social (HSES) obligations is advised to be one of the selection criteria for contractors. This can be performed through HSES auditing of short-listed contractors prior to final awarding of contract.

Contracting

Final Report - 84 - June 21, 2007 The contract should include all the relevant HSES requirements for the project. It also includes the necessary insurances to compensate damage to public or privatevol. property 3 during construction activities, this may include, but not limited to, public liability insurance and third party liability insurance. Insurance certificates can be included as an annex to the contract.

Due to the nature and the number of project components and subcomponents, this section details the mitigation measures for the significant negative impacts from the ADP Project.

Final Report - 85 - June 21, 2007 Mitigation measures for Construction Works (Components 1.1, 1.2, and 3) vol. 3 Table 7-2: Mitigation Measures for General Construction Works (Components 1.1, 1.2 and 3)

Implementation Responsibility Cost Potential Impacts Mitigation Measures Schedule (USD) Implementation QA/QC Collect and dispose wastes, 11 demolition and excavated materials PMU Continuous during Civil Work Part of Civil Water pollution at the landfill operated by Onyx; monitored project execution Contractor 12 Work Contract Restrict surface runoff from the by ES site. Dust from Employ dust suppression measures Continuous during Civil Work PMU Part of Civil construction such as wetting and dust project execution Contractor monitored Work Contract activities enclosures. by ES Continuous during Civil Work Enforcing the revised PMU project execution Contractor Part of Civil environmental regulations of monitored Air pollution Work Contract prohibiting waste burning on site by ES

Continuous during Civil Work Use appropriate methods for the project execution Contractor storage of waste materials; PMU Part of Civil Dispose of solid wastes to Onyx monitored Generation of wastes Work Contract landfill and hazardous waste to by ES Nassereya landfill

Limit construction activities Continuous during PMU Civil Work Part of Civil Noise between 8:00 am and 7:00 pm with project execution monitored Contractor Work Contract Friday off by ES

Table 7-3: Mitigation Measures during the Construction Phase specific to each component

Implementation Responsibility Cost Potential Impacts Mitigation Measures Schedule Implementation QA/QC (USD) Component 1.1 Construction of infrastructure at land development area Waste analysis for possible use of Accumulated leftovers as earth for grading and PMU construction / Prior to removal of Civil Work road pavement, otherwise dispose monitored 8,000 demolition leftovers on leftovers Contractor the waste in the sanitary landfill by ES site operated by Onyx Draft an employment plan that ensures the local population is Employment given the necessary training and the opportunities are not Continuous during opportunity to be integrated in the Governorate PMU - distributed equitably to project execution development activities in their the local population neighbourhoods and the areas surrounding Lake Marriout Component 1.2 Reconstruction/Rehabilitation of access roads Clogging of natural Continuous during Civil Work PMU Included in Maintain ditches drainage channels project execution Contractor project costs

Where resettlement is unavoidable, 13 Encroachment on develop and implement appropriate Prior to contract PMU Alex. Gov. RPF private property plans in accordance with the ADP execution implemented Resettlement Policy Framework.

Higher Risk of damage to Use “chance find” procedures and Council for 14 Continuous during Civil Work unknown archaeological coordinate with the Higher Council Monument TBD based project execution Contractor sites for Monuments monitored on project by ES Component 3 Urban Upgrading

11 Environmental Management Unit – Alexandria Governorate 12 Environmental Specialist hired by the AGPP - PMU 13 Resettlement Policy Framework 14 To be determined

Final Report - 86 - June 21, 2007 Implementation Responsibility Cost Potential Impacts Mitigation Measures Schedule Implementation QA/QC vol.(USD) 3

Cross contamination 15 Employ suitable prevention sewage and water lines Continuous during Civil Work AWCO Included in measures such as good drainage due to pressure project execution Contractor monitored project costs around water supply points differentials and leaks) by ES

Specific lots should be chosen based on geographic and Site Selection for topographic characteristics. The proposed buildings such site selection involves analysis of Prior to project Included in PMU PMU as post offices and the site’s urban characteristics; execution project costs medical centers accessibility; land ownership; suitability of soils for construction; contamination pollutants.

PMU Part of Civil Impacts from upgrading Compliance with the construction Continuous during Civil Work monitored Work sub-projects guidelines for CDD sub-project project execution Contractor by ES Contract

Possibility of In this eventuality, the resettlement of residents Resettlement Policy Framework whose house or document is to be implemented in Quarterly Governorate PMU - business stands in an full. area earmarked

Mitigation Measures during Operations

Table 7-4: Mitigation Measures during operations Cost Implementation Responsibility Potential Impacts Mitigation Measures (USD) Schedule Implementation QA/QC Component 1.1 Construction of infrastructure at land development area Water pollution from Connect internal wastewater During site Contractor PMU Included in improper disposal of network to the main 400mm preparation project costs wastewater pipeline running near the area and collecting to the Western WWTP Air pollution from Ensure compliance of Continuous PMU EEAA – No additional activities in the area establishments with environmental RBO costs regulations concerning air pollution Water pollution Ensure compliance of Continuous PMU EEAA – No additional establishments with environmental RBO costs regulations concerning water pollution Generation of wastes Dispose of solid wastes and locate Continuous Onyx Alex. Gov. Onyx suitable number of bins for waste operational collection costs

Component 1.2 Reconstruction/Rehabilitation of access roads

15 Alexandria Water Company

Final Report - 87 - June 21, 2007 Cost Implementation Responsibility Potential Impacts Mitigation Measures (USD) Schedule Implementation QA/QC vol. 3 Noise and public safety Construct noise and public safety During Contractor PMU Included in near residential areas at barrier (concrete type) for the area construction monitored by ES project costs Al Sad Al Aly road passing through the residential (Unit cost of areas noise barrier is 22.5 USD/ft3) Construct pedestrian bridges to During enhance the accessibility of construction Contractor PMU Included in residents between the separated project costs areas.

Storm water Construct appropriate storm water During Contractor PMU Included in management drainage system for the roads construction project costs rehabilitated Public safety is at risk Increase signage on the roads After construction Transport Alex. Gov. No additional from the roads and improve existing ones. and prior to Authority costs trafficked by trucks operation serving the oil and Increase traffic control. petrochemical industries Integrate protection measures nearby schools and densely populated areas.

Establish an emergency plan for cases of accidents and emergencies on these roads. Component 2.1 Reducing time and steps of business start-up New job opportunities Focus on enhancing human capital Quarterly Governorate PMU Governorate resulting from skills-sets to match needs of private budget investors attracted to investment projects, thus promoting the area do not employ technical and vocational education. local labour Component 3 Infrastructure improvement to squatters Storm water Construct appropriate storm water Prior to operation Contractor PMU Included in management for roads drainage system for the roads project costs rehabilitation rehabilitated The cost of installing Develop a micro credit program for 6 months PMU PMU Cost of water meters is too the installation of water meters, installation of high for some families connection to sewage and water water meters distribution networks as well as for (EGP 500) x upgrading homes number of households Disease transmission Train staff on handling, storage, Continuous Medical centre PMU Included in through treatment, and disposal of medical management project costs Infectious waste sharps waste and contaminated Provide protective clothing for staff water. Chemical and handling medical waste toxic threats through Good hygiene practices Vaccinated chemical and workers pharmaceutical Temporary storage containers in exposure for medical designated locations centers Segregate solid and medical waste Incinerate medical waste in a designated site Spread of disease and Select a location with easy access Prior to Medical centre PMU Included in environmental impact to safe drinking water construction management project costs from planning new Install adequate sanitation facilities Prior to operation medical centers to prevent the spread of disease from infected patients Prior to Avoid locations adjacent to schools construction to minimize children’s risk of exposure Prior to operation Pick a location where waste can be safety buried easily shipped off site for safe disposal in sanitary landfill

Final Report - 88 - June 21, 2007 Mitigation Measures for Social Aspects vol. 3 Table 7-5: Mitigation Measures General Social Aspects Cost Implementation (USD) Potential Impacts Mitigation Measures Responsibility

Exclusion of primary or Conduct a public awareness scheme and public Alex. Gov. Governorate budget secondary stakeholders consultations Under-representation of Conduct economic analysis for vulnerable groups in Alex. Gov. 15,000 groups in vulnerability context the area (fishermen, poorer communities and or vulnerable to risk scattered population in the area)

Establish community representation through community committees Absence or reluctance of PPP Prepare and implement schemes to mobilize public- Alex. Gov. Governorate budget private participation PPP Unfair/inadequate/ Establish a transparent process for the purchase of Alex. Gov. Governorate budget inappropriate land pricing land and provide access to housing loans prevents the poor from buying the land their house is built on

Monitoring and reporting

General

As part of the environmental management of the project, environmental performance monitoring needs to be undertaken to ensure that mitigation measures are implemented and have the intended result. Additional remedial measures may be undertaken if mitigation measures are inadequate or the impacts have been underestimated within the EIA report, in particular where the project would be in breach with permits, national standards and World Bank Group requirements and guidelines. Monitoring requirements may be subdivided into two main topics:

• Performance monitoring of the implementation of mitigation measures by the works Contractor(s); • Direct monitoring of the effectiveness of mitigation measures.

It is noted that the first aspect of monitoring is relevant to the execution of works by external contractors, principally during the construction stage, but also for major maintenance works and decommissioning.

Contractor performance monitoring

HSES Management Plan In order to ensure that the Contractor is fully aware and prepared for the management of health, safety, environmental and social (HSES) aspects of the project, the Contractor(s) of the works should be required to prepare an HSES Management Plan (HSES-MP) for the specific works to be executed under his contract. The Contractor’s HSES-MP will serve two main purposes:

• For the Contractor, for internal purposes, to ensure that all measures are in place for adequate HSES management, and as an operational manual for his staff. • For the Client, supported where necessary by Client Supervisors and the ESE, to ensure that the Contractor is fully prepared for the adequate

Final Report - 89 - June 21, 2007 management of the HSES aspects of the project, and as a basis for monitoring of the Contractor’s HSES performance. vol. 3

On the basis of this ESMP, the Contractor’s HSES-MP should provide:

• An overview of the HSES aspects and impacts related to construction works. • Relevant Egyptian legislation and Egyptian and WB standards to which the Contractor will comply, including the way in which contractors will monitor such compliance, specifying: o Standards against which the monitoring will be set (national and WB), o Which parameters and limits will be monitored, o Frequency at which monitoring will be undertaken. • A clear definition of specific mitigation measures that are intended to be implemented in order to minimize the impacts. • The internal organisational, management and reporting mechanisms put in place for such.

The Contractor’s HSES-MP should be reviewed and approved by the Client before start of the works. This review should demonstrate if the Contractor’s HSES-MP covers all of the identified impacts, and has defined appropriate measures to counteract any potential impacts.

The contractor should implement, and provide the PMU and the Client with, his emergency preparedness and response plan. The plan should identify the different emergency situations in the project area (oil/chemical spills, damage to public or private property, fire/explosion, accidental discharge of pollutants to water bodies, etc.) and their risk rating. The plan also should include the classification of emergency situations, resources available, response procedures, communication procedures, emergency training and drills. The emergency plan should be approved by the PMU and the Client.

HSES inspection It is advised that the PMU contracts an Environmental consultant supported by a third party consultancy firm for environmental supervision of the works independent of the Contractor. The quantity of works to be carried out calls for a team of consultants, each dedicated to a specific region and /or kind of work. It is recommended that the Environmental Consultant is involved part time during the whole duration of civil works, together with the third party consultancy firm.

Transportation: The management of motor vehicles used for the transport of materials and personnel should be monitored and include the following:

• Motor vehicles condition and maintenance • Vehicle safety signals • Loading and off-loading procedures • Vehicle license and permit to drive, and • Kit for first aid and fire extinguisher

Final Report - 90 - June 21, 2007 Execution of civil Works: The monitoring criteria should include the following: vol. 3 • Noise levels • Equipment maintenance • Management of construction site aesthetics • Dust levels • Destruction of flora and fauna

Wastes management: Solid and liquid wastes which will be generated will have to be disposed off accordingly. Monitoring should include:

• Waste storage, including sanitary and hazardous waste • Implementation of opportunities for waste reduction and reuse/recycling • Adequate disposal of waste

Raw material use: Measures to be monitored are:

• Selection of environmentally-friendly raw materials and suppliers • Implementation of opportunities for reduction in raw material use

Soil protection: In areas and at sites with increased risk of erosion as a result of construction works, the Contractor’s practices to be monitored include:

• Implementation of erosion-protection measures (e.g. silt screens, terracing) • Separation and reinstatement of topsoil • Implementation of environmental engineering measures and ecological restoration after completion of works • Prevention and remediation of soil contamination

Protection of public safety: The Contractor’s practices with regard to protecting public safety should be monitored with regard to:

• Bordering and signaling of works • Traffic management • Restriction of access to work sites

Disturbance and interruption of commercial and social activities: Key Contractor management measures to be monitored include:

• Traffic management • Avoidance of relocation • Provision of access to sites to allow continuation of socio-economic activities • Prevention of land take where possible • Prevention of destruction/disruption of other utilities and infrastructure • Prevention of destruction/interference with cultural property

Final Report - 91 - June 21, 2007 The Environmental Consultant will pay site visits on a regular basis in order to familiarize himself with the activities of the Contractor and to have checks on the weekly vol.reports of3 the Contractor. Details of HSES performance will be reported to the Client in the Supervisor’s reports to the Client.

It is advised that the Contractor is required to keep records and make reports on health, safety and welfare of persons, and damage to property. It is advisable to include such records, as well as copies of incident reports as Annexes to the weekly reports.

HSES reporting The Contractor should be required to prepare weekly progress reports, which shall contain, among others, safety statistics, including details of any hazardous incidents and activities related to other HSES aspects. In line with this requirement it should be expected that the Contractor report on:

• HSES management actions/measures taken; • Problems encountered in relation to HSES aspects (incidents, including delays, cost consequences, etc. as a result thereof); • (Lack of) compliance with contract requirements on the part of the Contractor; • Changes of assumptions, conditions, measures, designs and actual works in relation to HSES aspects; • Observations, concerns raised and/or decisions taken with regard to HSES management during site meetings.

The Contractor shall complete on a weekly basis a standard form that could serve as the basis for discussions on HSES during the weekly progress meetings between Contractor, Environmental Consultant and the Borrower’s Project Engineer. After review, the report should be approved by the PMU Environmental and Social Consultants.

It is advised that reporting on incidents shall be done “as soon as practicable. Such incident reporting shall therefore be done individually. Also, it is advised that the Contractor is required to keep records and make reports on health, safety and welfare of persons, and damage to property. It is advisable to include such records, as well as copies of incident reports as Annexes to the weekly reports.

Table 7-6: HSES Reporting Requirements

Reporting Report Frequency From To HSES Incident reports 24 hrs after each incident Contractor ES Social Specialist HSES Progress Report Weekly Contractor ES Social Specialist HSE Compliance Audit After each audit Short-term consultant ES

HSES Performance report Every Six Months ES ADP Director Social Specialist World Bank

Final Report - 92 - June 21, 2007 Table 7-7: Monitoring Program for General Construction Activities (Components 1.1, 1.2 and 3) vol. 3 Environmental Cost Monitoring Standard (Law Responsible Organization Parameters to Frequency (USD) Location 4/1994) be monitored Implementation Supervision Noise Activities Twice weekly Daytime: 60 dB Civil Works EMU 80,000 near at daytime Night: 50 dB Contractor residential and night areas PM10 Activities Twice weekly 150 µg/m3/ 24 hrs Civil Works EMU 34,000 near (24 hrs Contractor residential monitoring) and unpaved roads Sub Total 1 (construction) 114,000

Monitoring of the effectiveness of mitigation measures

During Implementation the majority of potential impacts are not related to effects that can be easily monitored through a receptor-based monitoring program (for example sampling and analysis of air, water and soil quality). Effectiveness of mitigation measures should therefore rather be managed through the Contractor HSES performance program. Where appropriate, the mitigation measures define requirements on the part of the contractor to monitor compliance with standards. The following can be monitored:

Operation phase HSES Performance of clients can be frequently monitored to ensure compliance with relevant WB and Egyptian requirements. The following table summarizes this monitoring program. However, a detailed monitoring program can be conducted after formulation of the tender documents of the different ADP project components.

Table 7-8: Monitoring program during operations Environmental Cost Monitoring Responsible Organization Parameter to be Frequency Standard (USD) Location monitored Implementation Supervision Component 1.1 Construction of infrastructure at land development area Overflows of Areas of Every 6 No overflow from manholes wastewater months manholes collection Wastewater ASDCO No system collection system Environmental additional operators Unit costs

Component 1.2 Reconstruction/Rehabilitation of access roads 4/year for 5 Law 4/1994: 3 NOx Near consecutive NOx: 400 µg/m (1 hr) CO residential days. Two 150 µg/m3 (24 hr) EMU EEAA – RBO 50,000 TSP areas at the times a day at CO: 30 mg/m3 (1 hr) Sad Aly road a.m and p.m. 10 mg/m3 (8 hrs) TSP: 230 µg/m3 (24 hrs) Near 4/ year for 2 Law 4/1994: Noise residential consecutive Daytime: 60 dB areas at the days Night: 50 dB EMU EEAA – RBO 75,000 Sad Aly road Component 3 Infrastructure improvement to squatters Operating Road Every 6 All drains in settlements EMU MWRI No drainage rehabilitation months operating additional channels area costs Overflows of Areas of Every 6 No overflow from Wastewater ASDCO No manholes wastewater months manholes collection system Environmental additional collection operators Unit costs system

Final Report - 93 - June 21, 2007 Environmental Cost Monitoring Responsible Organization Parameter to be Frequency Standard (USD) Location vol. 3 monitored Implementation Supervision Sub Total 2 (Operations) 125,000

HSES performance should be reported to the borrower management on a regular basis to take the necessary corrective actions, especially in cases of non compliance.

Proposed environmental and social mitigation measures for Parallel Activity by GOE

(1) During the construction phase:

POTENTIAL MITIGATION MEASURES RESPONSIBILITY COST IMPACTS Implementation QA/QC (US$) Excavation of Analysis of pollutants in ASDCO PMU Included in potentially sediments to be dredged from lake project cost contaminated surface and drain, to ensure that are no sediments from lake hazardous constituents dredging Employment Draft an employment plan that Governorate - No additional opportunities are not ensures the local population is cost distributed equitably given the necessary training and to the local the opportunity to be integrated in population the development activities in their neighbourhoods and the areas surrounding Lake Mariout

(2) During the operation phase: Table 7-9-1: Mitigation measures during Operation of Wastewater Treatment Plant - Parallel Activity by GOE

Final Report - 94 - June 21, 2007 RESPONSIBILITY vol. 3 POTENTIAL COST MITIGATION MEASURES IMPACTS IMPLEMENTATI QA/QC (US$) ON Industrial effluents Prohibit connections to sewer ASDCO EEAA – RBO No additional affecting the networks in case that polluting cost treatment process industrial establishments do not (EPAP II have pre-treatment EEAA - RBO Alexandria funding Require that each polluting Governorate scheme) establishment prepare a compliance action plan Health and Adequate treatment should be WWTP Management ASDCO No additional environmental risks provided to control the effluent Management cost associated with quality through proper operation discharge and reuse and maintenance of the WWTPs, of treated effluent in including regular inspection and irrigation or fish maintenance. Such measures farming should be defined as part of the operation and maintenance manual of the WWTPs

Sludge disposal Dispose of all sludge in the 9N WWTP ASDCO No additional disposal site till the Management Management cost implementation of the new sludge management system in the consecutive phases Odour and insects at Provide covers to equipment, 9N Management EMU No additional the 9N site containers and beds that are likely monitored by cost to cause odour nuisance ASDCO Environmental Unit Increased incidence More frequent Parasite WWTP Management EHD 10,000 of water related monitoring for workers and diseases in residents (weekly minimum) of wastewater reuse wastewater quality at various scheme points to determine source of contaminant prior to entering irrigation system and at various points throughout system. Conduct a workshop to educate residents and local government officials about causes of disease Odour at the Eastern Proper planning and WWTP management EMU No additional and Western WWTPs implementation of operation and monitored by cost maintenance ASDCO Provide covers to equipment, Environmental Unit containers and beds that are likely to cause odour nuisance Nuisance during Provide covers to trucks during ASDCO Environmental No additional sludge transportation sludge transportation Unit cost Sludge quality and Approval for reuse should be 9N Management ASDCO No additional the risk of public and obtained from Ministries of Environmental cost farmers acquiring Health and Agriculture Unit infection In the case that the nematodes are higher than requirements. Sludge No additional should be stored for more than 1 9N Management ASDCO cost year to ensure that no parasites Environmental are present in sludge. Unit

Final Report - 95 - June 21, 2007 RESPONSIBILITY vol. 3 POTENTIAL COST MITIGATION MEASURES IMPACTS IMPLEMENTATI QA/QC (US$) ON Risk of groundwater Construct two monitoring wells 9N management ES 15,000 pollution at 9N upstream and downstream the site sludge disposal site to perform regular testing of groundwater quality Pollution of Lake Regular visual inspection of the Western WWTP ASDCO ASDCO Mariout from failure integrity of the dykes Management maintenance maintenance of dykes of the ponds department budget at the Western WWTP Total cost for mitigation measures during operation phase of parallel activity 25,000

Proposed environmental monitoring for Parallel Activity by GOE The implementation of this parallel activity will take place by the contractor under the supervision and inspection of EEAA – RBO.

Table 7-9-2: Monitoring program during operations of the Wastewater Treatment Plant- Parallel Activity by GOE Enhancement of Wastewater Treatment

Environmental Responsible Organization Monitoring Parameter to be Frequency Standard Cost (USD)* Location monitored Implementation Supervision Law 48/1982: Design Build and BOD5 Raw sewage 60 mg/l Operate Contractor COD (dichrom) and at final 80 mg/l (2 years) DO discharge > 4 mg/l Daily WWTP EEAA - RBO 96,000 PH point of 6 – 9 management at Oil and grease Wastewater 10 mg/l operations TSS Plants 50 mg/l (3 years) Fecal coliform. 1000/100 ml Law 48/1982: Design Build and Phosphate - At final Operate Contractor Ammonia - discharge (2 years) Nitrate 50 mg/l point of Weekly WWTP EEAA - RBO 14,000 Fluoride - Wastewater management at Sulphate - Plants operations Sulphide 1 mg/l (3 years) Phenols - Law 48/1982: Aluminium Total heavy metals not Design Build and Cadmium exceeding 1 mg/l Operate Contractor Chromium At final (2 years) Copper discharge of Monthly WWTP EEAA - RBO 7,000 Iron Wastewater management at Lead Plants operations Selenium (3 years) Silver Zinc Water quality at receiving water body (Omoum Drain) Law 48/1982: Design Build and DO 500m > 4 mg/l Operate Contractor PH upstream and 7-8.5 (2 years) Turbidity 500m 50 NTU Monthly WWTP EEAA - RBO 5,000 Phenol downstream 0.005 mg/l management at Fecal coliform. the receiving 5000/100 ml operations water body (3 years)

Final Report - 96 - June 21, 2007 Sludge At 9N site Every Batch Dec. 44/2000 9N Management EEAA - RBO 73,000vol. 3 Nematode eggs 1 egg/100gm solids Salmonella 3 cells/100 ml (at 4% solid content) Faecal Coliform >1000 cell/gm solids

Heavy Metals: Dec. 44/2000 (mg/kg) Cd 39 Cu 1500 At 9N site Ni Every Batch 420 9N Management EEAA – RBO 180,000

Pb 300 Zn 2800 Cr 1200 Ground Law 48/1982: DO water DO > 4 mg/l Every six pH Monitoring pH 7-8.5 9N Management EEAA - RBO 15,000 months Faecal coliform wells at 9N FC < 5000 / 100 ml site

Total Cost for Monitoring during Operations for Parallel Activity to Component 1 390,000

* Although the cost of environmental monitoring of this parallel activity is not included as part of the ADP total ESMP costs yet the figures can be used as indicative costs for the and the competent administrative authorities.

Social Monitoring Plan

Table 7-10: Social monitoring program

Responsibility Monitoring Means of Frequency Potential Impacts Mitigation Measures Results/Indicators QA/QC Verification Implementation

Exclusion of Conduct a public Stakeholders’ interests Minutes of primary or awareness scheme are being incorporated meetings secondary and public in the project Governorate PMU 6 months stakeholders consultations components on an ongoing basis Under- Conduct economic Vulnerable groups are Minutes of representation of groups in analysis for properly represented / meetings, vulnerability vulnerable groups in percentage of project context or vulnerable to risk the area (fishermen, vulnerable groups in reports, poorer communities different events attendance and scattered sheets population in the Governorate PMU 6 months area)

Establish community representation through community committees Absence or Prepare and At least 2 new Project reluctance of PPP implement schemes initiatives have been documents to mobilize public- proposed / Number of Governorate PMU 6 months private participation PPP initiatives PPP proposed and

Final Report - 97 - June 21, 2007 Responsibility Monitoring Means of vol.Frequency 3 Potential Impacts Mitigation Measures Results/Indicators QA/QC Verification Implementation

developed by year 2.

Unfair/inadequate/ Establish a Private investors in the Survey inappropriate land pricing prevent transparent process area are capable of businesses from for the purchase of buying land at owning land and Governorate PMU 6 months necessary collateral land and provide equitable and fair and stability access to loans prices / market price of the land New employment Draft an employment 30% of new Employee opportunities do not make use of the plan that ensures the employment records, local human local population is opportunities created project resources given the necessary by the various documents training and the construction works opportunity to be employ local human integrated in the resources / development percentage of local activities in their human resources neighborhoods and employed Project the areas documents, Governorate PMU Quarterly surrounding Lake Market specific training Marriout technical and evaluation vocational skills documents Focus on enhancing training programs human capital skills- targeting the local sets to match needs population are running of private investment by the end of year 1/ projects, thus number and promoting technical effectiveness of the and vocational training programs. education. Residents cannot Develop a micro At least 40% of Water credit program for Supply afford the high the installation of residents are capable Authority costs of installing water of installing water records meters, connection water meters and to sewage and water meters and of of connecting to distribution networks connecting to the PMU PMU 6 months as well as for wastewater wastewater networks upgrading homes. networks by the end of year 2 / number of water meters installed Public safety is Increase signage on Incidents of road Traffic reduced because of the roads and increase in road improve existing accidents remain Authority traffic ones. stable or decrease / records and

Increase traffic number of road statistics control. accidents Governorate PMU 6 months Integrate protection measures nearby schools and densely populated areas.

Establish an

Final Report - 98 - June 21, 2007 Responsibility Monitoring Means of vol.Frequency 3 Potential Impacts Mitigation Measures Results/Indicators QA/QC Verification Implementation

emergency plan for cases of accidents and emergencies on these roads. Possibility of Resettled Resettled Grievance resettlement of residents/businesses office residents whose are relocated to residents/businesses records, post house or business appropriate have encountered a resettlement stands in an area alternative survey earmarked for housing/property minimum amount of comprehensive and/or otherwise disruption due to their Governorate PMU Quarterly development compensated in line resettlement / with the terms of the Resettlement Policy Respondents’ Framework comments and level of document. grievances/satisfaction

Institutional measures

Project Management Unit

The ADP will operate under the overall supervision of the Governor of Alexandria. The Governor has selected the Secretary General of the Governorate to provide overall oversight on the project. The project is implemented by the PMU headed by the Project Director and comprises five key specialists and their subordinates: Financial Manager, Procurement Specialist, Infrastructure Engineer, Economist and Executive secretariat. A Technical Support Unit is attached to the PMU, which enables the PMU to use on demand- basis various Advisors to the Governorate, experts and hire short-term consultants.

It is recommended that the PMU is supported by a full time Environmental Specialist and a full time Social Development Specialist for the monitoring and evaluation of the effectiveness of mitigation measures, and for preparing corrective actions in cases of deviation from the planned arrangements. Further, short term consultants in the areas of environment and social development are recommended to audit the progress of the ADP and to provide their input on a regular basis.

Relation with other programs and organizations

The planned activities under component 1.1 requires a close coordination with the Lake Marriout Committee responsible for the development of the Lake Marriout and the implementing agencies for other high priority projects identified in the CDS, these are the Egyptian Pollution Abatement Project (EPAP II), Global Environmental Facility (GEF), and Ministry of Water Resources and Irrigation (MWRI). The Regional Branch Office of EEAA in Alexandria has a pivotal role in improving the quality of the Lake Marriout though enforcing the compliance with environmental legislation, especially for industrial establishments discharging pollutants to the Lake.

Different authorities/institutions (as listed in sections 2.3.2 and 2.3.3) are involved in the environmental monitoring in Alexandria and are already responsible for various Egyptian monitoring networks. The PMU can make use of the existing infrastructure in its monitoring program.

Final Report - 99 - June 21, 2007 Handing over PMU tasks and responsibilities after termination of the project vol. 3 It is proposed to gradually hand over the specific tasks and responsibilities of the PMU during the last phase of the project and to enable the transfer of knowledge and experience gained throughout the lifetime of the project. A well-timed and well designed plan should be drafted, emphasising the coordinating mechanisms, exchange of information and the financing structures for the benefit of suitable development of the project areas and the well- being of its inhabitants.

Upon completion of the ADP project activities, category 1 components will be serving communities and potential impacts will be assessed and controlled by relevant administrative authorities. However, clear guidance should be provided to ASDCO (responsible for carrying out the parallel activity to enhance wastewater treatment operations), which is the responsible institution for wastewater facilities and collection networks in order to ensure compliance with relevant environmental legislation and to mitigate negative impacts on the surface water bodies and on public health. This section describes the main management aspects related to operation and maintenance of these facilities and networks.

Operations The Eastern and Western WWTPs, according to Law 4/1994, should maintain an environmental register of their activities including:

• Types of activities and nature of primary raw materials used and capacity during the corresponding time period. • Legislation governing the operations of the WWTPs. • Statement of the types of emissions, the rates of drainage and methods of disposal of: o Gaseous emissions o Liquid emissions o Solid emissions • Frequencies of carrying out tests on all types of emissions from the WWTP • Extracted materials after treatment processes. • Extent of efficiency of treatment method.

Emergency plan The Eastern and Western WWTPs should develop and maintain and emergency plan in accordance with requirements of the Labour Law 12/2003. The plan should identify the different emergency situations in the project area (oil/chemical spills, damage to public or private property, fire/explosion, accidental discharge of pollutants to water bodies, etc.) and their risk rating. The plan also should include the classification of emergency situations, resources available, response procedures, communication procedures, emergency training and drills.

Capacity development

This section aims to identify needs for capacity development for efficient management of environmental and social aspects during the implementation of the ADP project.

Implementation phase

Final Report - 100 - June 21, 2007 Environmental and social awareness raising is an important element in ensuring effective implementation of environmental and social management measures. The followingvol. training 3 should be provided:

• General training on environmental and social management should be provided for PMU and Borrower staff involved in the different projects. • Specific training should be provided for staff who will undertake regular monitoring of the project operations to ensure compliance with the ESMP.

It is recommended that the different training components are organized by a third party who is fully acquainted with international environmental management practices and relevant WB and Egyptian guidelines.

General HSES training The environmental management training for PMU and agencies supervisors (e.g. AWCO, ASDCO, Transport Authority) involved in ADP should be further developed by a third party and the training should be organized before the start of the actual execution of the works.

Specific HSES training The agencies supervisors (PMU, EEAA-RBO and ASDCO staff) are acquainted with the supervision and monitoring of WWTP operations in general but are not familiar with up-to- date environmental management practices.

Specific training for the supervisors should contain training on the treated effluent discharge requirements and sludge re-use, in addition to laboratory sampling, analysis, environmental monitoring and quality assurance/control. This training package should be further developed by a third party and the training should be organized before the start of the actual execution of the works.

Contractor HSES Training The Contractor should provide sufficient training to his own personnel to ensure that they are all aware of the relevant aspects of the ESMP and are able to fulfil their roles and functions (contractor’s responsibility). Specific training should be provided to those employees that have specific tasks associated with the implementation of the ESMP.

General topics should be:

• HSES in general (working procedures) • emergency procedures • social and cultural aspects (awareness raising on social issues).

This kind of training should be a requirement in the contract for the Contractor of the works.

Final Report - 101 - June 21, 2007 Cost estimates vol. 3 Costs estimates and sources of funds for initial investment and recurrent expenses for implementing all measures contained in the ESMP, should be integrated into the total project costs by the Borrower. Estimates are provided only for measures that are outside of the scope of general good construction practices, i.e. where specific endeavors, incurring additional costs, are expected.

Final Report - 102 - June 21, 2007 Table 7-11: Cost Estimate of Environmental and Social Management Plan vol. 3 Component Quantity Unit Rate Total Cost USD * 1,000 USD MITIGATION MEASURES (Tables 7-3 to 7-5) 23,000 - 23 MONITORING PLAN (Tables 7-7 to 7-8) 239,000 - 239

Subtotal 262 INSTITUTIONAL MEASURES Recruitment: Environmental Specialist for the PMU 5 years 12,000/year 60 Social Development Specialist 5 years 12,000/year 60

Short term environmental consultant to provide technical assistance to 10 months 6,000/month 60 the PMU Short term social development consultant to provide technical 10 months 6,000/month 60 assistance to the PMU Studies, Training and Awareness 2 workshops 7,000/workshop 14 Two days workshop to site supervisors, PMU and EEAA - RBO on environmental management, monitoring, analysis and evaluation 2 workshops 7,000/workshop 14 Two days workshops for PMU, EEAA – RBO and ASDCO on treated effluent discharge and sludge re-use 4 workshops 4,000/workshop 16 One week training workshop to Staff of Wastewater Treatment Plants on laboratory sampling, analysis, environment monitoring and QA/QC 4 workshops 1,000/workshop 4 One day training workshop on occupational health and safety to staff at Wastewater Treatment Plants One day workshop for local NGOs, communities and farmers, focusing 4 workshops 1,000/workshop 4 on public awareness and on re-use sludge for agricultural purposes. Public awareness and notification on project activities 1 workshop 10,000 10

Subtotal 352

TOTAL 614

In addition to the direct ADP ESMP costs (US$ 614,000), it is envisaged that there will be other mitigation and monitoring costs associated with the parallel activities to ADP that GOE has committed itself to take over. These costs are mainly due to the mitigation measures during operation phase, and monitoring of the operations of the planned enhancement of the wastewater treatment plants and have been estimated to be US$25,000 and US$ 390,000, respectively, as shown in Tables 7-9-1 and 7-9-2. The summary of the environmental and social mitigation and monitoring costs for project components and parallel activity is shown in a summary for in the following table.

Final Report - 103 - June 21, 2007 vol. 3 Summary Cost Estimate of Environmental and Social Management Plan for Project and Parallel Activity Component Total Cost 1,000 USD Total mitigation measures for the project components (Tables 7-3 to 7-5) 23

Total monitoring plan for the project components (Tables 7-7 to 7-8) 239

Total institutional measures (Table 7-11) 352

TOTAL PROJECT RELATED MEASURES 614

Total mitigation measures for construction and operation phases for parallel activity (Table 7-9-1) 25

Total monitoring plan for parallel activity (Table 7-9-2) 390

TOTAL PARALLEL ACTIVITY-RELATED MEASURES 415

TOTAL 1,029

Final Report - 104 - June 21, 2007 vol. 3 Public consultation and disclosure activities Introduction

The primary purpose of this provision is to protect the interests of affected communities. Therefore, the EIA process should include consultation and disclosure of information to key stakeholders involved in and/or affected by the ADP.

The objectives of consultation and disclosure are to ensure that all stakeholders and interested parties, are fully informed of the proposed project, and have the opportunity to express their views and opinions regarding the potential impacts that might affected their livelihood.

Specifically, the public consultation meetings aim to:

• Disseminate information about the nature of the proposed project. • Raise the awareness of the public regarding the nature and purpose of the Integrated Environmental and Social Impact Assessment process in simple- to-follow terms. • Identify a preliminary list of potential environmental and social issues and impacts. • Explore, discuss, and document the issues of concern to the public; which would be addressed in the future phase of impact assessment. • Disclose to the public how the impacts were determined, the magnitude and severity of the impacts, and the proposed mitigation measures.

Regulations and Requirements

While the Environmental Law for the Environment (Law 4/1994) and its executive regulations, currently, do not require conducting public consultations for approving Elias the World Bank requires that affected groups and NGOs must be consulted as part of the environmental assessment of projects as stated in the Bank’s Operational Policy (OP) 4.01 Environmental Assessment and other key documents. The World Bank manuals (e.g. Participation Sourcebook, BP4.01 and OP4.01 for Environmental Assessment, OD4.20 for involving NGOs, BP17.50 about disclosure of information are taken into account.

Methodology

The Consultation process was conducted in two main stages: during the scoping and after preparation of the draft IESIA.

First Stage: Consultation during the scoping is comprised of a consultative session with the most pertinent stakeholders, in-depth interviews with the most pertinent stakeholders, and site visits. Initial identification of key stakeholders and interested parties took place prior to this stage. This was mainly dictated by the time frame of the IESIA and the high abstraction level of the project.

Final Report - 105 - June 21, 2007 Second Stage: The draft IESIA is presented to a larger forum. This was achieved through a public meeting that the ADP/Alexandria Governorate announced andvol. called 3 for. The process for calling for the public meeting ensured proper communication with the affected communities and key stakeholders as follows:

• Media advertisement announcing the call for the public meeting to review the Draft Final IESIA • Preparation of non-technical summaries of the project to be delivered upon registration to the event. The summaries were made available in the Arabic language to ensure complete understanding of the project. • Preparation of presentations in Arabic describing the project’s activities and the anticipated impacts • Disclosure of the Draft Final IESIA locally and via the World Bank infoshop.

Alexandria Governorate led the consultation process with the technical support of the project team. The IESIA team assisted in coordinating the IESIA with the relevant stakeholders (local population, governmental and non-governmental organizations, academia and other relevant groups). The social and environmental specialists of the team were responsible for ensuring that early and effective identification and consultation with these groups was undertaken.

First Consultation Stage

Preliminary scoping was carried out based on reviewing the existing documentation, the results of the kick-off meeting held on April 11, 2006 at the ADP/PMU and the discussions held with the most pertinent stakeholders. Field visits and in-depth interviews with key resource persons as part of the first input of the public consultation were also conducted.

The in-depth interviews conducted throughout the scoping stage involved representatives of governmental institutions, private technical consulting firm involved in the project, donor organizations participating in development projects in Alexandria in general and within the ADP area specifically as well as community representatives and interest groups such as fishermen.

The purpose of these interviews was primarily to provide information regarding the project, identify published and non-published sources of relevant data and information, obtain views on the scope of the project, and open channels for ongoing discussions. The participants in the first consultation stage are listed in Annex 9.

Consultative Session

On May 29, 2006 a consultative session was held at Alexandria Governorate main conference room. The purpose of the session was to consult with the pertinent stakeholders and receive their feed back on the Intermediate IESIA and Social Assessment reports which were earlier distributed for reviews.

Representatives of the civil society, competent governmental authorities as well as technical consulting firms participating in the design of the project participated effectively in the discussions.

Final Report - 106 - June 21, 2007 The sessions were facilitated by the ADP/PMU manager and the IESIA responded to the clarifications and inputs of the participants. The list of participants in the consultativevol. 3 session is presented in Annex 9.

Conclusions from the First Consultation Stage

The main outcomes from the first consultation stage demonstrate that there is a high level of optimism regarding the results of the project. However, very high expectations and diversity of problems facing the Alexandria community were dominating the discussions. The complexity of the proposed ADP and its diversified nature also represented a major challenge especially in terms of coordination between the different components and the various consultants.

The interviewed persons from the government, technical consulting firms, business community and dwellers of the project areas all welcomed the project and were quite well informed about the ADP. This is explained by the fact that many of the activities were taking place on the ground and many of the government officials as well as project consultants were frequently conducting field visits.

The conclusions drawn from this consultation stage can be summarized as shown in the following table:

Table 8-1 Conclusions from the first consultation stage, May 29 2006 Key Issue Comments Slum Upgrading The 3 squatter settlements are characterized by being informal and can not be identified as “slums”. El-Nahda and Om-Zhegiuo areas are not considered as slum areas. Alexandria Governorate/ADP approach is to improve the living conditions of the dwellers of the 3 settlements. No resettlement is intended. Rehabilitation and improvements of physical conditions are the common interventions adopted by Alexandria Governorate as in the case of Karantina district. Dwellers are feeling quite secure and the issue of regularization is not of high priority at this stage especially in El-Amrawy and El-Hadara El-Gedida Environment (Water Quality) Need to consider impacts of the project on Alexandria sea and beaches. Continuous monitoring of sea water quality will be needed Water quality monitoring in Lake Marriout especially after implementation of the proposed enhanced treatment Lake Marriout needs special attention and high level coordination between different Government Authorities such as fisheries, EEAA and Alexandria Governorate Possibility of re-using the treated waste water in planting trees and mixing with agriculture wastes Accessibility to sea water quality data through the EU project running under the EEAA and with the CEDARE NGO. Environment (Air Quality, Fauna Data about air quality do exist for Alexandria in general but not necessarily for the project areas. and flora, Land Topography) Will the fauna and flora and land topography for the areas surrounding the project be affected? Environment (Lake Marriout and The proposed area for development surrounding Lake Marriout might be affected by high level of Surroundings) ground water Coordination with the Industrial Development Agency is needed regarding future development plans in the area. Business Environment/Micro Management of micro-loans Enterprises Encouraging formalization of micro scale polluting workshops for the purpose of upgrading Social Positive impacts of the project on the behavior of the residents of the areas Willingness of the dwellers to pay for improved services and regularization

Second Consultation Stage

Introduction

Following the preparation of the Draft Final report of the IESIA, a second stage of public consultation took place. It was determined to conduct the second stage of public consultation on the widest scale possible in order to capture the public opinion about the

Final Report - 107 - June 21, 2007 proposed project and the impacts of its components on the social and natural environment. The list of participants in the public hearing is presented in Annex 9. vol. 3

Activities

Communication with the public In order to ensure that the public are properly informed about the consultation event, an announcement was made on the most widely spread national newspaper (Al-Ahram) one week prior to the consultation date. The consultation was held on August 1, 2006 while the announcement was published on July 25, 2006.

Information about the project A non-technical summary in Arabic was prepared describing the project components, objective of each component, potential positive and negative impacts of each component and the proposed mitigation measures. The summary was made available at the Public Relations office in the Governorate right after the publishing of the announcement.

Documentation and classification of the comments Notes were taken during the public consultation where each question or comment was recorded. The comments and questions were then classified according to their relation to each project component. An internal discussion among team members took place to respond to each comment/question and ensure that the area of concerned is covered in the final report.

The following table documents the key issues and concerns raised by the participants.

Final Report - 108 - June 21, 2007 vol. 3

Table 8-2 Key issues raised by participants in second consultation stage, August 1, 2006 Project Component Key Issues Comments Overall Project • Current stage of the project design and implementation and whether the • The ADP project is currently in the final design phase after several rounds inputs of stakeholders will be considered in other project phases of workshops and discussions. For the environmental and social impact • More technical information about the project are needed assessment, the input from different stakeholders at this public consultation • Social Impacts of the project on the public in terms of traditions event will be reflected in the report before being finalized and published. • Involvement of the community and their natural leaders in the project. • All reports shall incorporate the issues raised during the consultation stages and will be disclosed to the public. • A social assessment report was prepared to determine the overall social impacts • The social study recommended the involvement of the community during various stages of the project cycle. Land Development • Potential environmental impacts due to tourism development around Lake • The potential environmental impacts for land development are detailed in (Component 1.1) Marriout as part of the Land Development component section 3 of the report. • The rational upon which the area surrounding lake Marriout was designated • One of the main objectives of the project is to ensure sustainable for land development instead of other areas west of Alexandria development in the area surrounding the Lake Marriout. The details are • Land development around Lake Marriout and its relation to a wider urban presented in section 3 of the report. The project aims to prevent uncontrolled development plan of Alexandria City development around the lake, thus maintaining the lake and its quality after • Resettlement of families due to land development and appropriateness of improvement. compensation • No resettlement of families is expected from this component. • Current practices of land-filling that occur in Lake Marriout and whether more land-filling will take place during land development

Roads Rehabilitation • The impacts of roads rehabilitation on the communities, businesses and the • No resettlement is intended due to any of the project components. However, (Component 1.2) environment (for example increase in traffic primarily trucks will increase it is expected to acquire land from State-owned enterprises to implement noise levels in residential areas) rehabilitation of Om Zeghiou and El Sad El Aly roads to bypass restricted • Resettlement of families due to road rehabilitation and appropriateness of residential areas. compensation • A Resettlement Policy Framework has been prepared to deal with any unlikely resettlement Enhancing PSP in • Environmental Impacts of the industries in industrial areas (El-Nahda ) • The ADP involves only the implementation of a pre-feasibility and detailed development and feasibility analysis for involving private sector in the operation and management of development industrial zone. The feasibility analysis will investigate the industrial areas readiness of private sector to participate in the operation of industrial areas (Component 2.3) and the possible regulatory reforms to promote PSP in industrial zones management. The component does not include any works that can affect the environment in the project area.

- 109 - June 21, 2007 vol. 3

Wastewater • The negative impacts of the existing primary wastewater treatment plants • The proposed project involves secondary treatment of wastewater at the (Parallel Activity to are many because they are not capable to treat the amount of sewage Eastern and Western WWTPs under parallel financing by GOE. This level Component 1) produced daily of treatment will enhance reducing the pollutants to a level that permits • Lack of training for the wastewater treatment plant staff and the lack of water reuse according to Egyptian and International standards. Section 3 in maintenance may affect the quality of treated sewage that is planned to be the report provides details of the proposed project including technical and reused to irrigate green areas and green belt around Alexandria economic information. Additionally, Section 6 compares the proposed • More technical and economic information are needed about the proposed project to other alternatives in terms of technology used, possibility of solution for wastewater treatment reusing treated water, and economics. • Will the treated wastewater quality be high enough to be re-used • The ESMP in this report includes on the job training for the operators and • Information about Lake Marriout water quality and the existing pollution the development of O&M manual by the contractor prior to delivery of the level need to be available for the public may be in a form of database project to ASDCO. This will ensure proper operation and maintenance of • Protection of Lake Marriout and avoidance of further damage or pollution to the plant to optimize the treatment process. the lake is necessary.

- 110 - June 21, 2007 Conclusions from the Second Consultation Stage vol. 3 The second stage of public consultation showed that the water quality of Lake Marriout is the main concern of the majority of the participants. It was obvious that any of the project components (especially wastewater treatment and land development around Lake Marriout) should not have any negative impacts on the lake. In fact, there is a need to demonstrate that the key project components will eventually improve the overall conditions of the lake.

Other concerns that were raised during the consultation were concerning the social impacts of the project and the inclusion of the community during the project implementation in order to maximize the socio-economic benefits of the project.

All concerns of the participants were all addressed in the different sections of the Draft Final Report.

Public disclosure

Complete sets of the IESIA reports for the ADP, including the Arabic Version of the executive summary will posted for public disclosure purposes in the following places accessible to the public:

• Public relations office, Alexandria Governorate • ADP Project Implementation Unit, Alexandria Governorate • ADP web site • Bibliotheca Alexandrina

Moreover, the documents will also be disclosed electronically through the World Bank Information Center (Infoshop) website (www.worldbank.org/infoshop).

Final Report 111 June 21, 2007 vol. 3

Annex 1 List of IESIA projects

Final Report 110 February, 2007 LIST OF IESIA PREPARERS vol. 3 Herrie Heckman Team Leader

Ihab Shaalan Co-team Leader

Henk Blok Environmental Consultant

Wael El Banna Environmental Specialist

Nils Gardek Social Development Consultant

Hanaa El Gohary Social Development Consultant

Mostafa Madbouly Resettlement and Urban Development Consultant

Final Report 111 June 21, 2007 vol. 3

Annex 2 References

Final Report 112 June 21, 2007 vol. 3

1 The World Bank, February and October 2006. Aide Mémoire for Alexandria Development Project 2 The World Bank, Alexandria Development Project, July 2006. Project Appraisal Document. 3 The World Bank, Alexandria Development Project, December 2005. Request for Proposals for Enhanced Wastewater Treatment System in Alexandria 4 The World Bank, Alexandria Development Project, December 2005. Request for Proposals for Market Analysis, Land Use Planning and Structuring the Development Process for a Mixed Use Land Development, Lake Marriout Basin, Alexandria, Egypt 5 The World Bank, Alexandria Development Project, March 2006. Request for Proposals for Consultancy Services for the Preparation of a Model Industrial Estates Program in Alexandria, Egypt 6 Alexandria Development Project. Terms of Reference for Traffic Surveys, Road Network Assessment and Proposed Improvements in Selected Area in Alexandria in Support of Main Centers of Economic Activity; and Engineering Designs and Bidding Documents for the Improvement of Three Roads. 7 M.H. Seoudi, October 2005. Review Report on Alexandria City Development Strategy, Towards a Development Strategy for Squatter Settlements. 8 Alexandria Governorate-World Bank-Seoudi, 2005. Development Strategy for Marriout Lake and Wadi. 9 Shaker Helmy, June 2005. The Comprehensive Strategic Development Plan for Lake Marriout Zone with Emphasis on the Immediate Action Plan. 10 Governorate of Alexandria. Alexandria City Development Strategy 11 SPAAC, April 2006. Study on Some Districts of Alexandria (El Amrawy, El Hadara El Gedida, Naga' El Arab), Final Report. 12 Environmental and Water Engineering Consultants (EWATEC), June 2005. Assessment of Pollution Abatement Potential in the Alexandria Area for EPAP II, Interim Report. 13 HYDROPLAN – Misr Consulting Engineers, December 2006. Alexandria Development Project – Consulting Services: Enhanced Wastewater Treatment System in Alexandria. Final Report 14 EHAF Consulting Engineers and Chemonics Egypt, December 2006. Market Analysis, Land Use Planning, and Structuring the Development Process for Mixed Use Land Development, Lake Marriout Basin, Alexandria Egypt. Final Report 15 ACE Consulting Engineers, December 2006. Traffic and Road Network Assessment and Feasibility Studies for Improvement of Traffic and Critical Roads in Support of Economic Activities in Alexandria. Final Report 16 Abdel Wahab M. Amer, January 1999. Alexandria Urban Water Assessment, a Status Report Submitted to UNESCO Cairo Office 17 Research Institute for Groundwater, 1992. Hydrogeological Map of Egypt, Nile Delta, First Edition. 18 Terence J. McGhee, 1991. Water Supply and Sewerage, Sixth Edition. 19 American Chamber of Commerce in Egypt, September 2000. Solid Waste Management in Egypt 20 S. Helmi & S. Hassouna, September 1998. Alexandria SWM Privatization Study, Techno-economic Study 21 Governorate of Alexandria. Conditions and Specifications Tender Document for Solid Waste Management Project for the Alexandria Governorate 22 Egyptian Environmental Affairs Agency, EIMP Program, 2006. The Monthly Report on Air Quality in Egypt. January 2006. 23 Egyptian Environmental Affairs Agency, EIMP Program, 2006. The Monthly Report on

Final Report 113 June 21, 2007 Air Quality in Egypt. February 2006. vol. 3 24 Egyptian Environmental Affairs Agency, 2006. Register of Multilateral Environmental Agreements to which Egypt is Signatory 25 Cabinet of Ministers, Information and Decision Support Centre, 2006. Egypt in Figures 2005, Alexandria Governorate. 26 Nasreya Hazardous Waste Treatment Centre. A Final and Safe Destination for Industrial and Hazardous Waste. 27 Asit K. Biswas & Abdullah Arar, 1988. Treatment and Reuse of Wastewater. 28 The World Bank, International Bank for Reconstruction and Development, 1996. Indicators, Waster and Waste Water Utilities, 2nd edition.

Final Report 114 June 21, 2007 vol. 3

Annex 3 Terms of reference for the IESIA

Final Report 115 June 21, 2007 vol. 3 Terms of Reference

Integrated Environmental and Social Impact Assessment of the Alexandria Development Project

1. Introduction

Alexandria Governorate is currently preparing with the World Bank the Alexandria Development Project (ADP). The objective of ADP is to enable Alexandria to take advantage of its competitive endowments, better manage local assets, and remove constraints to private sector-led growth, while ensuring the socio-economic integration of the poor. The Integrated Environmental and Social Impact Assessment (IESIA) will be the tool to assess and mitigate environmental and social impacts, specifically it will identify major environmental and social issues related to the project components; collect baseline data in relation to their environmental and social issues; compare alternative scenarios; and recommend environmentally and socially sustainable development approaches. The ADP project is one of many compatible concurrent projects and activities underway in the City of Alexandria, and this IESIA will reflect a coordinated and optimized effort.

2. Background

To support the ADP preparation, the Government of Egypt, Alexandria Governorate, has received a PHRD grant from the Government of Japan. The Governorate intends to apply part of the proceeds of the grant for consultant services pursuant to prepare the IESIA for the ADP Project. For the purpose of this study, the responsible authority is the Project Implementation Unit (PIU) of the ADP, located within the Diwan of Alexandria Governorate. The Project comprises the four components summarized below. Annex 1 provides a detailed project description.

Component 1: Priority Infrastructure in Support of Local Economic Development 1.1. Providing off-site infrastructure needed to support private development of land bordering Lake Marriout’s main basin through the carrying out of works.

1.2. Rehabilitating critical access roads linking major centers of economic activity in Alexandria through the carrying out of works. Component 2: Improvement of the Local Investment Climate 2.1. Streamlining key business start-up licensing procedures at the Alexandria Investor Services Complex through the provision of goods.

2.2. Preparing the regulatory framework for the registration of existing land and real property at the North Merghem enterprise park through the provision of goods.

116 2.3. Designing the regulatory, technical and financial framework for private sector vol. 3 expanded role in managing and developing industrial areas in Alexandria, through the provision of technical advisory services. Component 3: Urban Upgrading of Squatter Settlements 3. Providing basic infrastructure, community facilities and services, including the construction of water, wastewater networks, surface water drains, rehabilitation of access roads and establishment of community facilities through the carrying out of works and provision of community services.

Component 4: Institutional Development and Technical Support to Project Operation 4.1. Updating Alexandria’s Master Plan including an urban structure plan for Alexandria Governorate, a land use plan for Alexandria City and detailed local area plans for selected strategic areas through the provision of technical advisory services.

4.2. Establishing the Alexandria Development Agency through the provision of goods and technical advisory services.

4.3. Supporting the operational capacity of the PMU for the implementation of the Project activities, the EMP, the Resettlement Policy Framework, the monitoring and evaluation of the Project and the engineering design and construction supervision of component 1 of the Project through the provision of goods and technical advisory services.

3. Methodology

The scope and context of the ADP is particularly suitable for the proposed integrated approach as it is cross-sectoral by design and the project will address economic, environmental and social concerns in an integrated manner. As such during preparation of the IESIA, the consultant will take into consideration the number of actors involved, and a number of ongoing activities. The IESIA consultants will in close coordination with the Governorate draw upon all available information from related projects and activities.

4. Objectives

The overall objective is to prepare an integrated social and environment assessment of the three project components making extensive use of existing data and reports, supplementing the required information as appropriate, and combining the findings and mitigating measures into one single report titled Integrated Environment and Social Impact Assessment (IESIA). The outputs from this level of effort will include three separate documents:

• Integrated Environmental and Social Impact Assessment of project components. • Social Assessment, for which the major findings will be incorporated into the IESIA. • Resettlements Policy Framework.

117 vol. 3 5. Scope of Work

The consultant’s scope of work for preparing the IESIA includes:

a) Define the environmental and social objectives as well as the area of influence related to each of the components; b) Prepare a public consultation program to include at least two public participation sessions, i) during the scoping stage on the Terms of References for this assignment; and ii) following the preparation of a draft IESIA, carefully documenting all the steps; c) Building on previous work, identify the environmental and social baseline conditions, and actively engage local expertise in the collection of baseline information, analysis, and preparation of specific activities; d) Conduct a Social Assessment (refer to guidelines in Annex 4); e) Identify major environmental and social impacts, within the context of the Bank’s safeguard policies identified in Table 2. Safeguards that are to be triggered and issues related to each component, and their direct, indirect, cumulative and cross-sectoral impacts; f) Conduct an analysis of alternatives with regard to environment and social issues of the different components; g) Determine the appropriate institutional arrangement and local policies required to mitigate any adverse impact; h) Prepare a resettlement policy framework (Annex 5 provides detailed guidelines). If the project leads to resettlement or expropriation of land and/or loss of shelter/assets, resettlement action plans, in accordance with Bank’s Operational Policy O.P./B.P. 4.12, will have to be prepared; i) Prepare Environmental and Social Management Plan; and j) Finalize after public consultation, the IESIA report, including as appropriate, component- specific environmental and social management plans, and an executive summary in English and Arabic.

6. Environmental Category and Assessment Requirement

The ADP is an environmental category “A” project, in accordance with the Bank’s Operational Policy O.P./B.P. 4.01. Consequently, this implies knowledge of the Bank safeguards and the completion of both an environmental assessment, and in this case a Resettlement Policy Framework, as a condition for appraisal. In preparing the RPF, the consultant should focus on similarities and differences between Egyptian law and Bank rules and regulations. With regard to the environment the Bank’s guidelines call for consultations with populations and groups potentially affected by the project, building upon the framework of Alexandria City Development Strategy (CDS). All the steps of the participatory process should be documented in detail. The legal basis for Environmental Impact Assessment (EIA) is established in Egypt by Law No 4 of 1994, the Law on Protection of the Environment. It is implemented through its Executive Regulations, issued by Prime Ministerial Decree No. 338 of 1995. The environmental assessment procedure for the purpose of this Project will have to follow the World Bank safeguard policies and guidelines, especially Environmental Assessment Operational Policy (OP/BP 4.01) and Involuntary Resettlement (OP/BP 4.12). In preparing the IESIA, the consultant will also take into account local sectoral guidelines for water & wastewater, local roads, urban upgrading and any

118 other urban, land development, and infrastructure related regulation. In addition, as definedvol. in the 3 scope of work, the consultant will address any other safeguards that might be triggered (Table 2).

Table 2 Safeguard Policies Operational Policy Title Number 4.01 Environmental Assessment 4.04 Natural Habitats 4.09 Pest Management 4.11 Cultural Property 4.20 Indigenous Peoples 4.12 Involuntary Resettlement 4.36 Forestry 4.37 Safety of Dams 7.50 Projects on International Waterways 7.60 Projects in Disputed Areas

In addition Bank Policy 17.50 on Public Consultation and Information Disclosure will be triggered.

7. Study Area

The study area, illustrated in Annex 6, includes the area where the proposed Alexandria Development Project will be implemented.

8. Format of the Report

The IESIA report will follow the World Bank reporting format as for project level Environmental Assessment. Annex 7 provides a detailed description of the expected content for each of the sections applicable at the IESIA level.

Section 1 - Executive Summary Section 2 - Policy, Legal and Regulatory Framework Section 3 - Project Objectives and Description Section 4 - Baseline Data Section 5 - Environmental & Social Impacts Section 6 - Analysis of Alternatives Section 7 - Environmental and Social Management Plan Section 8 – Inter-Agency and Public Consultation Process and summary

List of References

Appendices: 1. List of EA report preparers. 2. References used. 3. Data Tables.

119 4. Documentation of the interagency and public consultation process. vol. 3 5. List of associated reports.

Much of the baseline data, development scenarios and options for engineering interventions will be supplied by different consultancy firms hired for the design of different components. Good coordination between the consultants involved under this hiring for environment and social impact assessment, and other consultancy firms will be important.

9. Public consultation

In compliance with World Bank policy, GP 14.70 Involving Non-governmental Organizations in Bank-Supported Activities and the framework of Alexandria City Development Strategy (CDS), a pubic consultation program should be prepared. The consultations will be with IESIA local stakeholders, project affected people, project beneficiaries and local NGOs. For a Category A Project, consultations should take place with all concerned parties and stakeholders including project-affected groups and take their views into account. For Category A projects such as the ADP, the borrower consults these groups at least twice. The first round of consultation will take place during the scoping stage of the IESIA, which will provide feedback on the Terms of Reference, and a basis for reviewing the issues that should be considered in the IESIA. The second round of consultation will also include a larger “townhall” meeting where all the stakeholders will be invited to participate. This will take place as soon as a draft IESIA is available. It is important that all stages of the public consultation process are carefully documented (e.g. agenda of meetings, who attended, to what extent were recommendations taken into account etc). Serious consultations with all stakeholders including people living, working in the project area is an essential part of the process, and the nature and extent of these consultations must be documented in the IESIA.

In the context of this project, and under the framework of Alexandria City Development Strategy (CDS), a Partnership Forum comprising key stakeholders of the city including NGOs and local representatives has been established and consultations have been ongoing for two years. The major problems from which the squatter settlements suffer have been identified in Participatory Rapid Appraisal Surveys. The Social Fund for Development (SFD) under a collaboration agreement with the Alexandria Governorate is currently completing a sample baseline survey covering the three pilot settlements. Given the findings of these processes, what additional work needs to be carried out and what gaps if any, need to be addressed? How are the key priorities of the different socio-economic groups within the settlements reflected in project design/approach? Stakeholder councils will be established as part of the project and the potential role of these councils should be explored in the IESIA.

10. Consultant Team

The core team should comprise, at minimum, the following qualified team members: a) Team Leader with specialized experience in integrated environmental and social impact assessments in similar projects; b) Environmental experts with specialized experience in water and wastewater engineering and pollution;

120 c) Social scientist with specialized experienced in urban upgrading, social impactsvol. of 3 infrastructure projects and integrated environmental and social impact; and d) Legal specialist with relevant resettlement and/or land acquisition experience in the context of urban development projects/programs, including environmental liability issues.

It is preferable if key personnel with responsibilities that require interaction with the client and stakeholders are fluent in English and Arabic.

11. Reporting & Schedule

The Consultant will report to the Project Implementation Unit (PIU) of the Alexandria Development Project (ADP) and shall submit the following:

Milestones Completion Date Contract award February 20, 2006 5 copies in English of Inception reports March 1, 2006 (7 days after contract award) 8 copies in English of Mid-term reports, including draft IESIA April 15, 2006 and RPF ( 32 days after submitting Inception Report) 20 copies and 3 CD-ROM in English of all Final reports, May 30, 2006 including final IESIA, Social Assessment and RPF; Executive Summary also prepared in Arabic. (32 days after submitting Mid-term reports)

The above planning is extremely tight and its management will be critical in order to bring the study to completion in the time frame indicated as the environmental assessment will have to be available before the end of May 2006 to allow the project preparation process be in compliance with the Bank’s guidelines.

121 vol. 3 Annex 1 ADP Project Description

The following is a detailed description of the ADP Project.

Component 1: Improve local investment climate

The objective of this component is to contribute to growth through a series of strategic pilot interventions aimed at improving the investment climate, rehabilitating critical road infrastructure, and enhancing the efficiency of municipal asset management. Specifically, this component aims to: a) Reduce time, steps, and cost of business licensing procedures (service and goods); b) Streamline land and property registration process of existing land and property informally held by investors (service and goods); c) Expand private sector participation in the management of industrial areas and other municipal assets (service); and

1.1. Reduce time, steps, and cost of business licensing procedures:

This sub-component aims to improve the regulatory processes and procedures to which businesses are subjected by the local administration. The objectives of this sub-component are to: a) Streamline the new business licensing process by reducing the transaction time, cost and number of steps associated with establishing a new business and obtaining all necessary permits for operation; b) Enhance access to and registration of land for investment purposes, and c) Enhance the efficiency of municipal asset management by facilitating private sector participation in the management and operation of public industrial zones operated by the Governorate and other municipal assets. Private sector investors from the Alexandria Businessmen Association and the investors’ associations in major industrial zones met by the mission and LED Consultant have particularly identified the licensing process, access to land especially for industrial investment, and service delivery/management of industrial zones among the key constraints to their business operation and the investment climate. These issues confirm earlier recommendations made by the Ministry of Investment, and the findings of the recently completed Egypt Investment Climate Assessment (ICA).

As a result, the following activities are currently under preparation in collaboration with the IFC’s Private Enterprise Program for the Middle East and North Africa (PEP-MENA) and the Foreign Investment Advisory Service (FIAS):

Streamlining new business licensing procedures: Under the aegis of the ADP, IFC’s PEP-MENA entered on October 3, 2005, in a tripartite agreement with Alexandria Governorate and the General Authority for Free Zones and Investments (GAFI) to finance a Business Start up Simplification in Alexandria (BSSA) project with the aim of strengthening business regulatory start-up processes at the GAFI’s Investment Services Complex- One Stop Shop (OSS) in Alexandria. The aim of the project is to reduce the regulatory burden on the private sector,

122 especially SMEs, through a comprehensive restructuring of the relevant business vol.start-up 3 procedures with the main objective being the reduction of the cost and time of business registration for start-ups and hence the encouragement of both local and foreign investment to the Governorate. This will in turn improve the regulatory environment for SMEs and encourage the formalization of the large informal sector presently constituting an integral part of the economy. The project will focus on Alexandria’s seven main in-land districts, industrial zones as well as the free zones and will work to ensure integration and cohesion among the governorate program, the OSS and the districts. Proposed reforms that are piloted in Alexandria would be scaled-p at the national level by the Ministry of Investment and GAFI.

1.2. Streamline land and property registration process

The activities for sub-component 1.2 include:

Addressing land market distortions facing investors. To address land market distortions in Alexandria, two strategic interventions were identified, namely enabling the regularization and registration of existing land and property informally held by investors in the Merghem area and facilitating access to land for industrial development.

Enabling tenure regularization and land/property registration in North Merghem: The area known as North Merghem is about 5.6km2 (1,333 Feddans), stretching linearly for about 8km to the north of Cairo-Alexandria desert highway and with a depth ranging between 600-800m. It is bounded from the west by Al Ziraa Al Bahary road and from the east and north by Al Nubariya canal. The area is strategically located, with direct access to the city, national highways and the Port of Alexandria. The area, which can best be described as an Enterprises Area, mostly houses small and medium size enterprises. Land-related problems were identified as one of the major obstacles to investment in North Merghem. Most of the 200-300 establishments that are currently operating—some since the 1970’s—have not yet regularized their land ownership. Having purchased their land from the Bedouins, investors still need to regularize their land ownership with the Governorate’s Amlak (State land) department. Despite the existence of past decrees by the Prime Minister and the Governor governing elements of the land tenure legalization process (respectively decrees No. 1107 of 1995 and No. 193 of 1999), disagreement over the valuation of the land and payment of usufruct rent for the interim period have prevented the resolution of this situation, which means that these investors’ lands and improvements are not registered and thus not possible to use as collateral.

The Investors Association, with support from CIDA’s Business Development and Support Program, is currently finalizing the preparation of an updated detailed map of the existing situation in North Merghem at a scale of 1:2,000 and an inventory of existing enterprises, which would serve to prepare a structure plan and preliminary land use plan for the area by Alexandria Governorate urban planning consultant. Attending investors committed to preparing detailed 1,500 or 1,000 cadastral maps listing individual properties and size of each parcel for regularizing land ownership. The purchase of land and tenure regularization in Merghem will not be mandatory, but rather on a demand basis and the scheme will not involve compulsory land acquisition, resettlement or negative impact on economic livelihood.

In line with the Bank’s recommendation and the ADP objectives, H.E. the Governor issued on June 22, 2005 Decree No. 537 establishing an overall Board of Directors for industrial areas in

123 Alexandria Governorate including representatives from investors’ associations in thevol. four 3 important industrial and enterprise areas (including Al Nahda and Merghem) as well as from concerned public agencies. The mandate of this BOD includes formulating policies and specific plans for improving and developing existing and new industrial areas in the Governorate, including improving services to established zones and facilitating access to industrial land including regularizing existing developments. As such, the BOD will play a key role in the land ownership regularization process for North Merghem. A legal consultant will advise ADP and the Alexandria Governorate’s Board of Directors for Industrial Areas on the land regularization process, including issues of pricing and the documentation needed including proofs of ownership.

Land development in Al Nahda: If the FIAS-led pre-feasibility study confirms Al Nahda area’s potential for accommodating the demand for industrial land in Alexandria and the suitability of Al Nahda area and other policies/regulatory conditions for private sector-led development of an industrial estate in selected vacant areas in the area, FIAS will facilitate the identification of a qualified developer through a competitive process and the brokering of a deal.

1.3. Expand private sector participation in the management of industrial areas and other municipal assets:

Two strategic interventions were identified to expand and formalize private sector participation in the management/operation of industrial areas, and to strengthen private sector participation in the management/operation of strategic local assets. The activities for sub-component 1.3 include:

Private sector involvement in the management and development of industrial estates. The lack of structured institutional and financial arrangements for the management, operation and maintenance of the different industrial areas in Alexandria is a key problem facing investors. Unlike other areas of industrial activity in Alexandria, which have better management arrangements (the Free Zone, managed by GAFI and New Borg Al Arab City, managed by an independent Authority under the Ministry of Housing’s New Urban Communities Authority), Al Nahda public industrial zone and Merghem enterprise area are administratively affiliated with the Governorate’s Ameriya district. The district lacks the resources to undertake appropriate maintenance of the areas’ infrastructure, and in the case of North Merghem, very limited infrastructure was initially provided by the government. As such, the devising of appropriate institutional and financial arrangements for the management of the different industrial areas is a key priority, and an important benchmark for improving the business environment.

In the face of such limited public resources, in North Merghem, investors individually financed their own infrastructure delivery and the Investors Association is playing an important role in financing the maintenance of infrastructure services, although such role takes places on an ad hoc basis and the area still lacks in infrastructure. The objective therefore in the North Merghem enterprise area (in addition to enabling land ownership regularization) is to enable the institutionalization of the private sector’s involvement, building on the investors’ association’s role, in the management of the area and maintenance of infrastructure. In Al Nahda, given the amount of vacant lands available, which could serve to accommodate the high reported demand for industrial land in the Governorate, the objective is to examine the feasibility of public-private- partnerships or other approaches to facilitating access to industrial land, building on the role of private sector as developer/operator of the industrial zone.

124 Under the aegis of ADP, IFC’s FIAS will lead the preparation of this sub-component. FIASvol. has 3 extensive experience on special economic zones, including industrial areas, and it Egypt, its recent activities included advising the GOE on the simplification of administrative barriers to investment and on the new strategy for the GAFI Free Zones. The following is roadmap between March-August, 2006:

Prepare Pre- Feasibility Study for private sector development of an industrial area in Al Nahda and Management/operation arrangements for North Merghem Enterprise Area and Al Nahda industrial area (January-April 2006). The study would help to assess: a) the attractiveness and potential of the two industrial and enterprise areas, and b) the critical reforms that need to take place including reforms of the legal and regulatory framework to facilitate the envisioned public- private partnerships. This would comprise:

i. Diagnosis of the current situation in Al Nahda Industrial Area and North Merghem Enterprise Area (basic economic information on each area, performance of formal/informal current management arrangements, financing issues, relationships with public/local/central/ institutions and other private/associations, intentions of and proposals by major stakeholders with regard to the role/ governance structure, and financing of management of their area, current issues and implications on business productivity and development) and Assessment of Demand for industrial land in Alexandria, and the ability/suitability of Al Nahda area to meet part or all such demand; ii. Review of current regulations governing IEs in Egypt and assessment of most common practices in IE management (including review of good practices: well functioning cases in other Egyptian cities); iii. Review of global best practices in IE management/operation including experiences from developed and middle-income/emerging countries (the review should cover: policy framework, financing arrangements fro IE development, various management structures (purely public, purely private, public-private partnerships and related context); iv. Outline of management options (at least two options if possible) for North Merghem and Nahda, with a preliminary assessment of the pros, cons and implications of each option to provide a basis for decision-making by key stakeholders; v. Workshop to discuss findings, management options, and recommendations and agree on road map; vi. Preparation of an action plan leading to the implementation of the elected option.

Component 2: Local Economic Development through redevelopment of Lake Marriout and its surrounding land

2.1: Reducing environmental degradation in the lake due to wastewater pollution

The Alexandria Governorate is currently making plans to improve the environmental conditions in Lake Marriout of Alexandria. The lake is seriously affected by the impacts of disposal of large quantities of domestic and sometimes industrial wastewater. This situation has generated bad odors at the entrance of the city on the Cairo-Alexandria road along with serious deleterious impact on public health and aquaculture. One of the major reasons of the poor water quality in the lake is the disposal of up to 600,000 m3/day of partially effluent from the Eastern Wastewater

125 Treatment Plant (EWTP) of Alexandria to El-Qalah drain that eventually discharges intovol. Lake 3 Marriout. This effluent has high organic load (about 150mg/l of BOD) and low oxygen content. The dissolved oxygen (DO) concentration in the El-Qalah drain drops to as low as 0.2 mg/lit, whit high concentrations of nitrogen. The el-Qalah drain runs for about 7 Km before it discharge into Lake Marriout. Daer El-Mattar drain surrounds the Alexandria airport and receives agriculture and domestic sewage. Furthermore, the Semoh, the El-Amlak and the El-Gonet drains further discharge some 300,000m3/day of untreated sewage into the El-Qalah drain. A map showing the project area is attached. The Semoh drain belongs to ASDCO, while El-Amlak and El-Gonet drains are owned by ASDCO and MWRI. The EWTP only provides primary treatment using screens, aerated grit removal chambers and (14) sedimentation tanks. The effluent channel from the plant discharges into the Daer El-Mattar drain that in turn carries the effluent to El- Qalah drain. The area of the plant is 54 feddans and it has un-used space 25 feddans left for future extension of the treatment units. No biological treatment is currently performed in the plant. Thus, high organic loads, in terms of BOD and COD, and low dissolved oxygen (DO) values are commonly measured in the effluent channel. Water quality analysis is performed regularly on the effluent by Alexandria Sanitary Drainage Company (ASDCO) and is available for review.

During the construction of the plant in the 1980s, three air blowers and many diffusers were made available but were not put into use. They have been recently rehabilitated (in 2003) for possible use in enhancing the primary treatment system and consequently help improve the water quality in lake Marriout. Some investigations have also been carried out to identify appropriate methods to aerate the plant effluent. Some experts have proposed the installation of aeration systems in the effluent channel; others have suggested the aeration of the El-Qalah drain itself. Other experts have recommended a combination of the latter methods.

Several parallel projects to improve the water quality in Lake Marriout have been proposed and some of them are even under construction. The Ministry of Water Resources and Irrigation (MWRI) considers two approaches for the improvement of water quality in El-Qalah drain, aeration by using weirs and dilution by mixing with better quality water from El-Umom drain. Dredging of the drain, leveling and pitching are also performed by MWRI. The objectives of this sub-component are to: a) Identify a set of interventions that would jointly contribute to The improvement of the health conditions of the fishermen and the communities around the lake (exposed to high levels of hydrogen sulfides); b) Improve the water quality in the lake Marriout (for potential economic development of its shores) and the el-Qalah drain; c) Significantly reduce the odors emanating from the el-Qalah drain; and d) Improve the aesthetics of the drain, which crosses many urban areas.

It is expected to propose a set of interventions, which should be in line with the long-term wastewater disposal options for the Governorate16. It is intended that any major investments to be carried out under the project will be within the context of the long-term plan. The procurement of

16 • A study carried out in 1997 has analyzed a number of possible options for the expansion and final disposal of wastewater from the exiting treatment plants. The recommended (long-term) option was secondary treatment at both the EWTP and the discharge of the effluent in the el-Qalah drain and bypassing the Marriout Lake through discharge of the Qalah drain into the Abiss drain and subsequently into the Al-Omoum drain (this drain discharges into the sea).

126 a consultancy firm to undertake these tasks is currently underway. The selected firm vol.will be 3 responsible to:

i. carry out feasibility studies on the key elements of the package of interventions; ii. analyze the key interventions and their individual and joint contributions to the main objectives; iii. estimate the costs of the various interventions; iv. carry out a cost benefit analysis of the proposed package of interventions; v. carry out a financial analysis of the viability of the project taking into consideration the sustainability of the investments and its impact on the finances of the wastewater utility; vi. calculate the annual cost of operation & maintenance (O&M) associated with the proposed interventions and assess the ability of Alexandria Sanitary Drainage Company (ASDCO) to bear. vii. prepare an environmental and social review of the proposed package of interventions (the full environment & social impact assessment will be carried out separately by an independent consultant); and viii. prepare bidding documents for the proposed interventions.

A great deal of work on the pollution of Lake Marriout, wastewater collection and treatment and disposal has been carried out by a variety of agencies and consulting firms. It is therefore important that the Consultants review in detail all studies, plans and designs previously undertaken and use as appropriate. The activities involved in achieving the objectives outlined above will include:

Review of previous studies and collection of data. Review all existing data and reports (master plans, feasibility studies, pilot studies, etc.) relating to the urban wastewater. Data required include, population projection, land use, domestic and industrial activities, land and water resources, etc. In addition, the consultant will review the development strategy of the Governorate, investment programs as they affect the wastewater sector and environmental policy in general. The Consultant will also take into account the available equipment and accessories at the plant.

Assessment of existing arrangements for wastewater collection and treatment. Review of performance of existing assets and the need for upgrading and management. Review the existing plans for expansion and the different proposals for final disposal of effluent.

Assessment of technical capabilities. Asses the technical and management capabilities of staff involved in all levels of the ASDCO.

Priority needs and deficiencies. Based on the foregoing review of the current situation of the levels of service and facilities, determine the critical areas of need and deficiency in the sector. The priorities might include the replacement of exiting systems, rehabilitation and extension of overloaded systems, provision of additional treatment, improved disposal systems, use of incremental treatment in the plant, drains or disposal sites.

127 Identification of package of interventions. Based on the foregoing reviews, assessmentvol. and 3 analyses, and on the prioritization of the deficiencies, develop proposals for high priority improvements to excreta collection, treatment and disposal. The impact of these proposals should be evaluated individually and in combination so that the objectives are met at the least cost. The proposals should incorporate the long-term proposals for the wastewater collection and disposal plans for the city. In general, the potential for upgrading of existing systems and the use of available equipment should be undertaken in preference to the installation of completely new systems, although it is understood that in some instances, the provision of entirely new systems will be necessary. The consultant is requested to provide his own insight of his work including conceptual plan to develop the aeration system and on-site treatment system for the sub-drains polluting El-Qalah drain. All proposals/suggestions shall be supported with calculations (for pilot and full-scale project) showing the basis and theory under laying his plan and comparison between possible alternatives17. One priority is the reduction of organic load discharged into Lake Marriout and thus the elimination of bad odors at Cairo-Alexandria road. The poorest section of the population living next to the lake suffers disproportional from the current pollution both directly and indirectly (loss of income from lake fisheries). Improving the environmental conditions in Lake Marriout is therefore likely to have positive social consequences. The specific activities include:

i. Prepare outline designs. Outline plans and designs will be prepared for all components identified above. It is anticipated that some of the components may already have preliminary designs prepared by other firms. For the components that do not have designs, layout plans and outline designs will need to be prepared in order for costs to be calculated to within 15%. Designs will be based on information available through the existing database since time constraints will preclude the carrying of site surveys under this stage of the work. Phasing of the program of investment proposed should be carried based on the priorities identified by the authorities and in line with the technical and institutional constraints. ii Recommendations for project execution, maintenance and operation. The Consultant will make recommendation for the institutional arrangement required for the effective execution of the components and to ensure efficient maintenance, operation and management of the upgraded systems. The consultant should consider the requirements for strengthening the existing institutions. Emphasis should also be given to the potential role that the private sector could play in the operation and maintenance of the systems proposed. iii. Prepare project costs and implementation schedule. Outline costs for the proposed components should be calculated and all investment, operating and maintenance costs relating to the priority sub-projects will be prepared. Local and foreign exchange costs for capital works and equipment will be identified and costing will include import duties, taxes that may be applicable. Phasing of the program of investment will be recommended. iv. Proposals for cost recovery. The Consultant will develop proposals for the recovery of the costs associated with the construction (if possible) and operation of maintenance of

17 Possible improvements could be achieved through aeration in the effluent channel and/or in El-Qalah drain and/or inside the plant or using any appropriate combination. Others would be the dilution by better quality water, aeration by hydraulic structures, chemical/biological interventions, dredging, leveling, pitching, etc.

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128 the proposed sub-projects. The consultant should assess the willingness and abilityvol. of the 3 public and other agencies to pay for the services. v. Economic and financial justification. All identified components will be subjected to economic and/or financial analysis as appropriate in order to confirm their viability. Economic analysis will be carried out for all components based on anticipated savings from improvement in public health, reduction of infectious and other ailments, and other economic benefits relating to urban development and increased tourism. vi. Financial analysis. Particular attention should be paid to achieving cost recovery and it is important that the systems proposed should be sustainable and should not rely on long-term government subsidy, as far as possible. The systems proposed must thus be shown to be capable of being operated and maintained in a sustainable manner, based upon the revenues obtainable. Full financial forecasts should be prepared for the systems. The project impact on ASDCO budgets should be shown by preparing cost and financing plans and financial projections for ASDCO with and without the project. vii. Environmental and Social Review. Environmental and social review for the proposed interventions should be prepared using the Bank’s guidelines. The Consultant will need to ensure that the components proposed for priority funding are clearly justifiable in terms of their appropriateness and the sustainability. viii. Preparation of pre-qualification and bidding documents. In accordance with World Bank (design-bid-build or design-build-operate types of contracts for proposed activities), the Consultant will prepare pre-qualification and bidding documents for each component. The Consultant will package the components, as necessary and in consultation with ASDCO. Standard bidding documents will be prepared to include terms of conditions, typical conditions of particular application of certain types of component, standard specifications and information on inputs and expected outputs.

2.2 Developing surrounding land through public-private partnership:

The objective of this sub-component is to assist the Alexandria Governorate in securing high quality mixed-use land development of a development site adjacent to the main basin of Lake Marriout under a public-private-partnership (PPP) arrangements.

The PIU is hiring a consultancy firm which will (a) prepare a development plan for a proposed high value mixed-use land development of the selected site, and (b) initiate the process for competitively selecting developers of this site under public-private-partnership (PPP) arrangements. More specifically the consultant will undertake the following tasks:

i. Conduct a preliminary assessment of the development potential of the selected site and identify possible technical, environmental and regulatory (land use/ownership, etc.) to be taken into account; ii. Conduct market analysis for real estate (office, commercial, housing), competition of other areas and/or uses to determine the market viability of the proposed site: potential of mix of land uses for development and competitive market price and potential land sales/lease value of the site; iii. Prepare preliminary land use plans for the development of the selected site; iv. Develop a preliminary site development phasing plan (possibly more than one option);

129 v. Conduct economic and fiscal impact assessment, and an environmentalvol. and 3 social review, on the basis on the development option selected by the Governorate (full Environment & Social Impact Assessment will be carried our separately by an independent consultant); vi. Analyze the most appropriate financial and institutional arrangements to develop and manage the implementation of the project. This will require a financial analysis to determine the viability of the proposed lake development plan; vii. Propose institutional arrangements within the Governorate for managing the development of the selected site and other large scale development under public private-partnership (PPP) development arrangements; viii. Prepare a refined site development and phasing plan; ix. Prepare terms of reference for detailed engineering of trunk infrastructure and roads network deemed to be financed by the public sector and that would stimulate private investment in the priority phase; x. Assist the Governorate in initiating the competitive selection of developers under PPP arrangement through (i) preparing terms of reference for consultant assistance in selecting developers for the land parcel(s) and (ii) proposing the process and timetable for selection of developers.

While this assignment is limited to preparing the above tasks, subject to satisfactory performance and the availability of additional funds under the proposed loan, the Governorate may elect to retain the consultant to provide assistance in the final selection of the preferred developers and in reaching final contract agreements with them under (PPP) arrangements.

The site selected for development consists of approximately 230 hectares, of which approximately 110 hectares are available for new development. The area is bordered by Cairo/Alexandria Highway on the south and east, the main basin of Lake Marriout and the new Coastal Highway on the west, and the Moharam Bek/Kabary Road on the north. (See Annex 1 with site location map) A preliminary land development plan has been prepared for this area by a local architectural firm and has been approved by the Governorate. Significant features of this site include (a) an certain area of shallow (about 20 cm depth) wetland which is now be filled by the Governorate after coordination with Ministry of Agriculture and Ministry of Environment, (b) the extensive existing Carrefour commercial area, located on the southeast corner of the site, and (c) a high value residential and commercial areas on the east side of the site that are currently under development. Positive features of this site include the established large and high quality commercial development on and near the site, good road access, the existing commitment of the Governorate to develop this land, as no land assembly is required. The principal negative features are the required fill, possible environmental concerns and/or technical/geotechnical restrictions associated with site development, and height restrictions over part of the site to accommodate an airport landing approach zone.

2.3 Rehabilitate selected critical road infrastructure:

Alexandria Governorate’s Roads Department identified several important arterial roads that mostly connect important centers of economic activity (e.g. industrial zones, tourism attraction centers, etc) and major hubs of transportation infrastructure (especially the Ports of Alexandria and Dekheila and the Airports of Nozha and Borg Al Arab) and which are in need of

130 rehabilitation/reconstruction. Rehabilitation of roads will take place within existing alignments.vol. 3 Of these, two major arteries were identified as a first priority for financing under the ADP first year of operation: Om Zeghiou and Al Sad Al Aly roads. The activities for sub-component include:

Reconstruction of Om Zeghiou Road. This road is approximately 12km in length extending from Al Ziraa Al Bahary Road intersection to the roundabout intersection with the Marsa Matrouh- Alexandria Road and Al-Sad Al-Aly Road. This road is an important link serving several industrial areas and linking these areas with the Container Port and the Cairo / Alexandria Desert Road. Om Zeghiou Road is in poor condition and will have to be reconstructed. Near the east terminus, the road extends through a constricted residential section. Investing in Om Zeghiou Road aims to improve traffic circulation within and access to major industrial areas and the Ports of Alexandria and Dekheila. TORs were prepared for Om Zeghiou, as well as for the traffic survey and road network assessment. A local consultant will be hired to design improvements for the reconstruction of Om Zeghiou Road. The scope of work will be conducted in two distinct phases. The first phase consists of a feasibility study to determine the most feasible design alternative for Om Zeghiou Road, with preliminary engineering design. The second phase is to make the engineering design and bidding

Reconstruction of Al-Sad Al-Aly Road. Al-Sad Al-Aly Road extends approximately 6km from the north terminus at the Marsa Matrouh/Alexandria Road to the south terminus at the Cairo/Alexandria Desert Highway. This road serves as an important link among a) the port of Alexandria and the industrial areas north of Lake Marriout, and b) the industrial areas south of Lake Marriout and the Cairo/Alexandria desert highway. At the north terminus, the road extends through a constricted residential area. A high percentage of traffic on this road consists of heavy trucks. Al-Sad Al-Aly Road is in a very poor condition that will have to be completely reconstructed and provided with adequate storm drainage. The objective of this investment is to improve access to major industrial areas and traffic circulation between them and the port of Alexandria. Since this road services several large-scale oil refinery and petrochemical industries, Alexandria Governorate initiated discussion with the management of these public and private sector entities, and an agreement was reached that the beneficiary enterprises would cover the cost of financing the rehabilitation of this critical road. It was agreed with Alexandria Governorate that the rehabilitation would be designed following the traffic survey and road network assessment study recommendations and that implementation would be supervised by and coordinated with the ADP.

Component 3: Urban Upgrading

The component is aimed at providing support to basic infrastructure, community facilities and services, including the construction of water, wastewater networks, surface water drains, rehabilitation of access roads, establishment of community facilities and provision of community services.

131 Annexvol. 2 3 Available Information, References and Databases for ADP

For Component 1: Improve local investment climate 1. Memorandum of Understanding between Alexandria Governorate, GAFI and PEP- MENA 2. TORs for the consulting assignment to establish a model industrial areas 3. All reports that will be produced by the PEP-MENA and the consulting firm preparing the sub-component- as stated in Annex

For Components 2.1: Enhanced wastewater system:

1. Current air photos and maps in electronic format showing existing development (including buildings and roads, at a scale of 1:5,000); 2. The wastewater master plan of Alexandria; 3. Lake Marriout Strategic Development Plan- with emphasis on immediate action plan; and 4. Population and demographic data 5. TORs for the consulting assignment 6. All reports that will be produced by the firm preparing the component- as stated in Annex 2

For Components 2.2: Land Development

1. Alexandria Local Economic Development Report 2. Preliminary development plans of Lake Marriout and analysis of selected development sites 3. Preliminary strategy for tourism & heritage development 4. TORs for the consulting assignment 5. All reports that will be produced by the firm preparing the component- as stated in Annex 2

For Components 3: Urban Upgrading 1. Participatory Rapid Appraisal in 20 squatter settlements (in Arabic with an executive summary in English) 2. Towards Alexandria Urban Upgrading Strategy (detailed information and action plan of each squatter settlements- in Arabic) 3. Structure Maps of the 3 Squatter Settlements, including new alignments (1-1000) 4. Baseline survey 5. All reports that will be produced by the SFD for preparing the component- as stated in Annex 2

132 Annexvol. 3 3 Guidelines for a Social Assessment

1. Background

Alexandria Governorate with World Bank support is currently preparing the Alexandria Development Project (ADP). The objective of ADP is to enable the city of Alexandria to take advantage of its competitive endowments, better manage local assets, and remove constraints to private sector-led growth, while ensuring the socio-economic integration of the poor. The Project comprises the following three components: 1) Improving Local Investment Climate to which businesses are subjected by the local administration and where feasible scale up the reforms at the national level through strategic interventions; 2) Local Economic Development through redevelopment of Lake Marriout and its surrounding land, and 3) Urban Upgrading: Integrate the urban poor in the economic development of the city. The latter component, focusing on the socio-economic integration of the poor, is of particular relevance to the Social Assessment, and includes: (i) Improve tenure security in squatter settlements; (ii) Increase access to infrastructure and services; and (iii) Improve access to jobs, micro-finance and business support services (subcomponent financed by the Social Fund for Development). The urban upgrading component aims to assist the Governorate in improving the living conditions, tenure security and economic opportunities in squatter settlements in Alexandria. Egypt’s goals to achieve the MDGs include improved access to water & sanitation, tenure security and reduction in the number of slum and squatter dwellers. A specific feature of urban growth in Egypt is the increasing number of informal/squatter settlements in under-serviced areas. Although considerable investments have been made in informal settlements – 10-15 floor apartment buildings are not unusual – there are also large areas with much less substantial housing (shacks and shanties) and associated poverty. The distribution and type of housing varies greatly between settlements.

According to the Ministry of Local Development, 22.3 % of the urban population lives in informal settlements. This ratio reaches as high as 36% in some large Governorates like Alexandria, where some 1.2 million inhabitants live in such settlements. Squatter settlements suffer from several problems, including: (i) A high rate of unemployment; (ii) Inadequate municipal services (primary health care, education, youth facilities); (iii) Poor infrastructure, especially clean water, piped sanitation and narrow unpaved roads; (iv) Poor housing conditions, and (v) Weak land titling and building permits, with subsequent inability to access mortgage finance and other financial instruments, which are under development in Egypt. In view of this situation, key components of the proposed project include:

Creating Economic Opportunities: The following three activities aim to assist unemployed people, especially in squatter and informal settlements, enter the labor force: (i) Explore opportunities to support existing viable and successful micro-credit programs, e.g. the reputable micro-credit program of Alexandria Businessmen Association (ABA), with the aim to enhance small business creations and income generation, especially through SMEs and home-based activities; (ii) Business support through improving existing business incubators and supplying of advisory services to start businesses; and (iii) Tailored training on skills that are required by the city’s economic clusters. Infrastructure and Services: According to Participatory Rapid Appraisal (PRA) Surveys (2005) conducted in 20 squatter and informal settlements in consultation with community representatives and city officials, the total cost of basic infrastructure needed is about $30 million, of which about half can be allocated from local and national investment programs as well as other donors’ assistance.

133 Enable land ownership and property registration in squatter settlements: Applying the new andvol. more 3 favorable regulations to squatter settlements characteristics and needs, upgrading plans are now under preparation in three pilot areas (Naj’a El-Arab, Al-Hadara Al-Jadida and El-Amrawy). These plans consider, to the extent possible, the preservation of the existing structure of each area. Land pricing is expected to be linked to income to make it affordable to squatter dwellers and local branches of Property Departments (Idarat Al Amlak) will be opened in each of the three areas and simplified procedures to obtain building permits will be in place. The process is led by the city officials, and in collaboration with the General Organization of Physical Planning (GOPP), the Social Fund (which will cover the entire cost of El-Amrawy upgrading), GTZ, UN-Habitat and Barcelona city. • A note on definitions: The PRA surveys use the term “squatter areas” as a generic term covering all informal settlements: “However it actually describes a mixture of slums (i.e. substandard housing conditions and decaying physical nature) and informal settlements (i.e. with no land titles and/or building permit, but housing conditions might, or might not, be substantial”). However, since the integration of the urban poor is an explicit aim of the project, it may be useful for the purpose of the SA to develop working definitions which make a distinction between informal settlements which in the Egyptian context covers a wide variety of socio-economic groups and squatter settlements where the poorest and most vulnerable sections of the population generally live,

In addition to the PRA, the Social Fund is currently carrying out a Baseline Study which will cover the three pilot settlements. Early findings are expected to be available by late March.

2. Objectives of SA

The main purpose of the social assessment is to provide a participatory framework for gathering, analyzing, prioritizing and incorporating socio-economic information in planning, implementing and monitoring the urban upgrading component of the project. The assessment is intended to develop a framework to assess the potential socio-economic issues associated with the proposed project. This includes:

(i) Analysis of context and social issues with (ii) a participatory process of stakeholder consultation and involvement to provide (iii) operational guidance on developing project design, implementation and monitoring and evaluation (M&E).

The SA should to the extent possible build upon the findings of the PRA and the baseline study currently being prepared. There are considerable economic and social differences both between and within the three pilot settlements, and it is thus particularly important to document how the needs and priorities of the different groups vary. In addition to settlement-specific strategies, interventions therefore also need to be tailored to the different socio-economic groups.

2. Expected outputs

The assessment should include (i) a participation and consultation strategy; (ii) baseline information and a monitoring strategy (iii) identification of potential adverse impacts and where needed an action plan to mitigate such impacts. Key findings from the SA will be included in the Integrated Environmental and Social Impact Assessment (IESIA). The expected outputs of the consultant – which to the extent possible should build upon existing work - are as follows:

134 The social development outcome of the proposed activities is to strengthen the socio-economic integrationvol. 3 of the poor and vulnerable through community-based approaches to urban upgrading in an effort to give marginalized groups a greater voice in decision-making. The consultant is expected to organize focus group discussions to better understand local priorities with respect to urban upgrading.

Socio-cultural, institutional and policy context: Identify socio-economic characteristics and prioritization of vulnerable groups, including women, in the squatter areas. What are the cultural and economic features that differentiate social groups in the three pilot areas (e.g. fishermen in Naj’a El Arab), and what are the opportunities and constraints for women to participate in local councils, skill building and income generating activities? What types of institutions are involved, and how, if at all, are community institutions, e.g. local councils linked to the Governorate. From a local perspective, what is perceived as key constraints to local participation, economic development and employment creation?

Legislative and regulatory considerations: Review legislation pertinent to the project, particularly with regard to land tenure, land acquisition and compensation. In this context, what are the similarities and differences between Egyptian law and Bank rules and regulations? Squatters will be given the opportunity to buy the land they occupy and land pricing will be linked to income. How feasible is this approach given the nature of informal/squatter settlements in Alexandria? Will this approach ensure equity? Potential areas of conflict should be identified. From the squatters point of view have the amendments in the Local Administrative Law (43/1979) giving more power to the Governorate and the empowerment of locally elected councils made a tangible difference? Do recent decentralization efforts have an impact on the ground?

Identification of stakeholders: Identify the different group of stakeholders (including those who can influence the project outcome, e.g. NGOs and CBOs, local councils etc) and their roles, responsibilities and priorities in the different stages of project development. How do these findings relate to the overall project approach?

Differential access to project benefits: There is always a risk that projects will benefit certain groups or sections of a community disproportionally. By making formal tenure available, it is critical to ensure that the process of tenure regularization is fair and inclusive. Based upon prior experience, the pricing of land is likely to be a potentially difficult issue that the SA should pay specific attention to. . Data collection and research methods: Build on existing data and ongoing activities (e.g. PRA, Baseline Study and other relevant work).Review all relevant literature. The consultant should carry out surveys, interviews, focus group discussions with vulnerable groups, NGOs and governorate. Assess effects of efforts to decentralize decision-making. Institutional assessment of key actors (e.g. local government, NGOs, CBOs and others involved in urban upgrading). It is important to avoid overlap PRA and baseline study, but gaps should be identified and addressed.

Strategy to achieve social development outcomes: The SA should attempt to: (i) Strengthen social cohesion by ensuring that poor and marginalized groups are included in the benefit stream; (ii) Empower stakeholders through their participation in design and implementation, and (iii) Enhance security by minimizing and managing likely social risks (e.g. how are land prices subsidized, links to income, time spent in the area etc).

Implications for analysis of alternatives: Do the findings have any implications for the overall project approach? Should components be added or reconsidered/modified, e.g. given the specific characteristics of informal settlements in Egypt, is the proposed regularization of tenure likely to be considered equally important for all socio-economic groups?

135 Recommendations for project design and implementation arrangements: Key SA findingsvol. will be 3 included in the IESIA in an effort to ensure that the project contributes to capacity building at the local level to enable participation, resolve conflict and enhance service delivery. In some cases houses may have to be relocated. Generally, the SA findings should present and discuss operationally relevant alternative approaches to ensure that project benefits to the extent possible reach the poor and vulnerable sections of the population.

Developing a monitoring and evaluation plan: The assessment should by building upon the baseline study provide a framework including indicators and institutional arrangements for monitoring the implementation of the urban upgrading component. In this process, transparent evaluation procedures should be defined.

The SA may also propose any additional studies needed, e.g. given the envisaged industrial growth in Alexandria, it has been suggested that an inventory of skilled labourers that have recently lost their jobs as a result of privatization should be carried out.

Consultant team: Social scientist with input from the legal expert, both from the IESIA team, will prepare the Social Assessment.

Schedule, budget and deliverables: Schedule: The draft Social Assessment should be completed within a three-month period (by mid-May 2005). Level of effort: Minimum 3 person/months which will include input from the legal expert. Budget: Will be finalized as part of the IESIA process. Deliverables: (i) Social Assessment as a free-standing document, (ii) integrate key SA findings into the IESIA, and (iii) integrate SA findings on legal issues into the Resettlement Policy Framework.by highlighting key provisions in the Egyptian law regarding land tenure, resettlement and compensation and how it differs from the Bank’s OP 4.12 on Involuntary Resettlement. The above tasks will be carried out parallel to the preparation of the IESIA, and close collaboration between all the team members working on the SA and the IESIA is therefore strongly encouraged.

136 vol. 3

Annex 4 Guidelines for Preparation of Resettlement Policy Framework

A. Introduction

1. Institutional arrangements

Since Component 3 – and the infrastructure part of Component 2 – as well as other sub-projects yet to be determined may trigger OP 4.12, a Resettlement Policy Framework has to be prepared for the ADP. In this context, it is of particular importance to ensure that various other closely related processes and activities are considered in developing the RPF. Many actors are involved and several studies of the three informal settlements in question have already been carried out. The framework should thus as much as possible build on these efforts, including work carried out by CDP, SFD, GTZ, etc).

2. Definition of key terms

Displaced Persons (DPs)

The term “Displaced persons” (DPs) is not limited to those subjected to physical displacement but include persons or entities to be identified by the baseline information collected for each of the Inventories and Resettlement Plans (RPs) who, on account of the execution of the Project would experience direct economic and social impacts caused by: • The involuntary taking of land, resulting in: • Relocation of loss of shelter; • Loss of assets or access to assets; or • Loss of income sources or means of livelihood, whether or not such person must move to another location.

Compensation

Compensation includes the process of financial or material reimbursement of DPs who lost partial or the absolute value of their assets as a result of the project. Compensation also includes the valuation and reimbursement in monetary terms or in kind of financial and physical losses as a result of impacts of the project.

Cut-off date

The cut-off date is the last day of the Inventory survey when all DPs have been accounted for and this day will be clearly stated to DPs by relevant authorities. After the cut-off date, no other DPs may be included in the Inventory of DPs. The Inventory lists all potential DPs, including their baseline information. People who move residences or business assets into or within the marked Right of Way after the Cut-Off date are not entitled to compensation under this Policy Framework. Before any activity the PIU will plan to set a cut–off date of eligibility for compensation.

Rehabilitation

Rehabilitation means providing assistance to DPs severely affected due to the substantial or entire loss of productive asset, incomes, employment or sources of living, to supplement payment of compensation for acquired assets in order to improve, or at least achieve full restoration of incomes and living standards to the pre- project level.

137 vol. 3

Replacement cost

With regard to land and structures, “Replacement Cost” is defined as follows:

For agricultural land: it is the pre-project or pre-displacement, whichever is higher, market value of land of equal productive potential or use located in the vicinity of the affected land, plus the cost of preparing the land to levels similar to those of the affected land, as well as the cost of any registration and transfer taxes.

For land in urban areas: it is the pre-displacement market value of land of equal size and use, with similar or improved public infrastructure facilities and services and located in the vicinity of the affected land, as well as the cost of any registration and transfer taxes. For houses and other structures, it is the market cost of the materials to build a replacement structure with an area and quality similar to or better than those of the affected structure, or to repair a partially affected structure, including the cost of transporting building materials to the construction site, the cost of any labor and contractors’ fees, as well as the cost of any registration and transfer taxes. In determining the replacement cost, depreciation of the asset and the value of salvaged materials are not taken into account, nor is the value of benefits to be derived from the project deducted from the valuation of an affected asset.

Crops, trees and other perennials based on current market value.Compensation for annual crops is equivalent to the production over the last three years multiplied by the market price for agricultural products at the time of the calculation of the compensation. Compensation for trees includes total investment cost plus production cost from the time of its planting to the expropriation. In case this cost cannot be determined, the compensation will be calculated based on type, age and productive value.

Other assets (i.e. income, cultural, aesthetic) based on replacement cost or cost mitigating measures. For example, compensation for the movement of graves includes all expenditures for exhumation, movement and reconstruction to its original state.

Resettlement

Resettlement refers to all measures taken by the project proponent to mitigate any and all adverse social impacts of a project on the DPs, including compensation for lost assets and incomes and the provision of other entitlements, income rehabilitation assistance and relocation, as needed.

Right of Way

For this Policy Framework, Right of Way (RoW) is determined by measuring both sides of the road, starting from the existing or proposed centerline to the outside edge of the cleared zone. The width of this corridor varies depending on the type of road.

Vulnerable Groups

Vulnerable groups include those distinct groups of people who might suffer disproportionately or face the risk of being marginalized by the effects of resettlement, and specifically include: • Poor and very poor people; • Ethnic minorities; • Mentally and physically handicapped people or people in poor physical health; • Infants, children and women; • Households without security of tenure or with tenure status.

138 vol. 3 DPs Without Legal Title

DPs without legal title are occupants of land and housing without legal ownership rights and individuals or groups of people with shops conducting business in the immediate project areas without official registration and who will be adversely impacted by the project through displacement. DPs without legal title are entitled to compensation provided their assets affected by the project were documented in the pre-project census prior to the Cut-Off date. In the context of this project, the majority of the DPs are likely to be people without legal title.

B. Resettlement Policy Framework

This Resettlement Policy Framework should have the following structure, with details described in Table 1:

1. Introduction 2. Objectives, Structure and Focus 3. Legal framework 4. Estimated population displaced 5. Guiding principles for resettlement 6. Method and procedure for evaluating assets 7. Entitlements 8. Organizational responsibilities 9. Public participation, consultation, complaints and grievances 10. Monitoring and supervision 11. Resettlement planning.

Table 1: Details for RPF Report Content 1. Introduction Include a discussion of RPF principles and objectives including eligibility criteria of Displaced Persons (DPs), entitlements, legal and institutional framework, modes of compensation and rehabilitation, public’s participation features and grievances procedures that will guide the compensation, resettlement and rehabilitation of the DPs. 2. Objectives, The principle objective of the Resettlement Policy Framework is to ensure that Structure and all Displaced Persons (DPs) will be compensated for their losses at replacement Focus of the RPF cost and provided with other assistance and rehabilitation measures to assist them to improve, or at least maintain, their pre-project living standards and income earning capacity. Every effort will be made to avoid land acquisition impacts, or where it is not possible, to minimize displacement and adverse impacts of projects by examining all available design options. Should the need for resettlement occur, it will be treated as an integral part of the project and be implemented in full consultation and participation with the Displaced Persons. 3. Assessment Might be useful to refer to the work on Country Systems in the context of EPAP of the Egyptian II. This section should include a discussion on the fit between relevant Egyptian legal framework laws and the rules and regulations of the World Bank. for resettlement

4. Estimated It is presently impossible to determine the precise number of individuals – if any population at all – to be resettled. Resettlement Plans will be drafted according to the displaced number of individuals affected, in accordance with the provisions of the RPF.

139 vol. 3 Field studies will precede civil works in order to precisely determine the number of people affected as well as the damages incurred. 5. Guiding In addition to existing Egyptian laws and regulations in place, the principles of principles for the World Bank’s Operational Policy 4.12 on involuntary resettlement will be resettlement under respected in preparing this Resettlement Policy Framework. In this regard, the this Resettlement following principles and objectives should be applied: Policy Framework • Eligibility criteria: All DPs residing, working, doing business or cultivating land in right of way (ROW) in the project affected areas, as of the date of the sub-project baseline surveys, are entitled to be provided with compensation, other assistance and rehabilitation measures sufficient to assist them to improve or at least maintain their pre-project living standards, income earning capacity and production levels. Lack of legal rights to the assets lost will not bar the DP from entitlement to such measures (within this project’s Policy Framework). • Minimization of expropriation of land. The expropriation of private land should be carried out only in cases where there is no alternative. • Legal process is obligatory. All expropriations must be carried out according to the provisions of Egyptian Law and World Bank rules and regulations. • Compensation and eligibility principles. Whenever expropriation of private land is unavoidable, such cases should handled according to Egyptian law and in compliance with World Bank regulations.

6. Method and The expropriating authority is the relevant office for legislation and procedure for compensation serving the city or the province concerned. The following steps evaluating assets should be taken: • Consulting engineers prepare a number of design scenarios for decision by the PIU. One of the criteria for the best scenario is least expropriation impact on private land and least disturbance of any nature. As soon as the detailed designs for the various sub-projects have been completed, more specific information on resettlement and/or land expropriation requirements, if any, will be available. • The relevant office for legislation and compensation applies to the Governorate for permission to expropriate. They annex to the letter the full rationale together with sketch maps. No further actions may be taken without the express consent of the Governorate. • On review of the evidence, and on finding the application justified, the Governorate gives permission to the relevant office for legislation and compensation to expropriate with the consent of the owner and to pay agreed compensation. The details of planned expropriation will be considered in Resettlement Plans as appropriate. The relevant office for legislation and compensation, in cooperation with PIU, ensures that Resettlement Plans conform to the requirements of Egyptian law and World Bank’s policy. The document is transmitted to the PIU and the World Bank who determine whether the plan conforms to Bank requirements for financing. 7. Entitlements Land classification in Egyptian law and how entitlements vary according to land type and who occupies the land should be specified, e.g. how does the law distinguish between owners; tenants and DPs with and without occupancy rights; people who use the land for commercial purposes; people who have made or

140 vol. 3 maintained improvements of any nature, years of occupancy etc. 8. Organizational • Enforcement of the Policy Framework and planning/implementing responsibilities and Resettlement Plans: The overall responsibility for enforcement of the Policy institutional Framework and for planning and implementing Resettlement Plans in the framework project area rests with the Governorate of Alexandria through their relevant offices for legislation and compensation. The Governorate will be responsible for preparing Inventories and Resettlement Plans and for the day-to-day implementation thereof within their respective jurisdictions. • Delivery of entitlements: The process of delivery of entitlements and who are involved at which stages should be described in detail.. • Provision of funds for implementing Resettlement Plans: Funds for implementing Resettlement Plans will be provided by the project based on the cost estimated and presented in the Resettlement Plans. In case of overruns of costs due to unforeseen delays or other circumstances, the PIU will be responsible for providing necessary additional funds as and when required to cover all resettlement costs. • Transfer of land may not take place prior to payment: The funds for any resettlement and land acquisition will be provided by the Alexandria Governorate, which is officially responsible for such issues. 9. Public • Public participation and consultation: DPs should participate participation, throughout the various stages of the planning and implementation of the consultation, Inventories and Resettlement Plans. For these purposes and prior to the complaints and preparation of the Inventories and Resettlement Plans, the DPs will be grievances informed of the provisions of this Policy Framework at public meetings at local and governorate levels. Each household DP will be fully informed of their entitlements and rehabilitation choices under the respective Inventory or Resettlement Plan. In this context, it would be judicious to involve Alexandria Local Council to ensure that project affected people stay well informed throughout the process. • Disclosure: In addition to the consultation process, and in accordance with the World Bank’s Public Consultation and Information Disclosure Policy BP 17.50, the RPF and each Resettlement Plan (Land Acquisition Plan) should be made available locally in Arabic, before the start of any expropriation activities. • Complaints and grievances: Agreement is reached in the great majority of cases without recourse to appeals for redress of grievance. Grievances and appeals may arise in the following cases: (a) Owner not willing to part with land: Since the public interest has been determined, the court acts in place of the owner, (b) All other cases: Any affected person may appeal to the court for redress. The court has the power to hear submissions, review the process, and make such provisions as it deems fit. These include ordering compensation to be paid, halting works, fining the owners. In most cases, the owner benefits from such appeals. However, in the case of any delay, owners lose since no provision is made for inflation.

10. Monitoring Implementation of the Resettlement Plans will be regularly supervised and and supervision monitored by the PIU in coordination with the Governorate. The findings will be recorded in reports to be furnished to the World Bank and one to the PIU. Internal monitoring and supervision by the PIU will: • Verify that the baseline information of all DPs has been carried out and

141 vol. 3 that the valuation of assets lost or damaged, and the provision of compensation, resettlement and other rehabilitation entitlements have been carried out in accordance with the provision of this Policy Framework. • Oversee that the RPs are implemented as designed and approved. • Verify that the funds for implementing the Resettlement Plans are provided in a timely manner, and that such funds are used by them in accordance with the provisions of the Resettlement Plan. • Record all grievances and their resolution and ensure that complaints are dealt with in a timely manner. • An independent agency or agencies will be retained by the Governorate to periodically carry out external monitoring and evaluation of the implementation of the Resettlement Plans. The independent agency may be academic or research institutions, non-governmental organizations (NGO) or independent consulting firms, all with qualified staff and terms of reference acceptable to the World Bank. • Determine whether the procedures for DPs participation and delivery of compensation and other entitlements have been done in accordance with this Policy Framework and the respective Resettlement Plan; • Assess if the Policy Framework objectives or enhancement or at least restoration of living standards and income levels of DPs have been met; • Gather qualitative information on the social and economic impact of Project Implementation on the DPs; • Suggest modifications in the implementation procedures of the Resettlement Plan Framework, as the case may be, to achieve the principles and objectives of this Policy Framework.

11. Resettlement This section should provide an outline of the information that should be gathered planning at various stages of the resettlement process.

• Baseline information ƒ Census and inventory will include the following information for each household: ƒ Number of persons and names; ƒ Number, type and area of the houses lost; ƒ Number and area of all the residential plots lost; ƒ Number, category and area of agricultural land lost; ƒ Quantity and types of crops and trees lost; ƒ Businesses lost including structures, land and other fixed assets; ƒ Productive assets lost as a percentage of total productive assets; ƒ Quantity and category of other fixed assets affected by each sub-project if relevant; ƒ Temporary damage to productive assets; ƒ Loss of incomes and employment.

The entitlement of assets and land affected are calculated based on the above information. Detailed socio-economic survey of the DPs should describe their age, sex, ethnicity, education, occupation, estimates of household expenditure

142 vol. 3 patterns, skills possessed, savings and debts, and record of fixed and moveable assets

• Screening procedure. The World Bank’s Operational Policy OP 4.12 requires the preparation of different types of instruments, depending on the anticipated impacts on the population. When people or their economic activities need to be removed or damage to property is expected a Resettlement Plan (RP)/Land Acquisition Plan (LAP) or an Abbreviated Resettlement Plan (Abbreviated RP) is prepared. The plan is based on up-to- date and reliable information about (a) the proposed resettlement and its impacts on the displaced persons and other adversely affected groups, and (b) the legal issues involved in resettlement. The rule for determining whether a subproject will require a RP or an Abbreviated RP depends to a large extent upon the number of DPs affected. For projects where impacts on the entire displaced population are minor, or where fewer than 200 people are displaced, an Abbreviated RP will usually be adequate.

• Resettlement Plans (RP). The scope and level of detail of the resettlement plan vary with the magnitude and complexity of resettlement. The plan should be based on up-to-date and reliable information about (a) the proposed resettlement and its impacts on the displaced persons and other adversely affected groups, and (b) the legal issues involved in resettlement. The RP covers the elements below, as relevant (see attached annexes for further guidance): ƒ Description of the project; ƒ Potential impacts; ƒ Objectives; ƒ Census and socio-economic survey; ƒ Legal framework; ƒ Institutional Framework; ƒ Eligibility; ƒ Valuation of and compensation for losses ƒ Resettlement measures; ƒ Site selection, site preparation, and relocation; ƒ Housing, infrastructure, and social services; ƒ Environmental protection and management; ƒ Community participation mechanisms; ƒ Integration with host populations; ƒ Grievance procedures; ƒ Organizational responsibilities; ƒ Implementation schedule; ƒ Costs and budget; ƒ Monitoring and evaluation.

C. Abbreviated Resettlement Plan (Abbreviated RP)

The abbreviated RAP should include, at a minimum, the elements listed below:

1. Description of the subproject (size, location, cost, etc);

143 vol. 3 2. Census and socio-economic survey of displaced households and/or businesses 3. (see Annex 2); 4. Impacts caused by displacement (see Annex 3); 5. Legal framework for land acquisition and compensation; 6. Valuation of assets; 7. Description of compensation and other resettlement assistance to be provided 8. (see Annex 2 and 4); 9. Consultations with displaced people about acceptable alternatives; 10. Timetable and budget; 11. Institutional responsibility for implementation and procedures for grievance redress; and 12. Arrangements for monitoring and implementation.

The Abbreviated RP can be a very short and simple document depending on the size and complexity of the project

For more detailed information the World Bank’s safeguard policies can be accessed via internet at http://www.worldbankorg/safeguards

144 vol. 3 RPF Annex 1: Entitlement Matrix

Type of loss Definition of entitled Application Compensation policy persons e.g. residential e.g. DP without formal Location in relation to Type of compensation tenure works

145 vol. 3 RPF Annex 2: Models of Tables for Census and Socio-Economic Survey of Displaced Households and/Or Businesses

146 vol. 3

147 RPF Annex 3: vol. 3 Models of tables for impact caused by displacement

RPF Annex 4: Model of table on compensation and agreed solutions.

148 RPF Annex 5: vol. 3 Model of table for resettlement schedule

149 Annex 5 vol. 3 Study Area Map

150 Annex 6 General Content Requirements for the IESIAvol. Report 3

Section 1: Executive The Executive Summary should be designed to be a consultation document and should be Summary available in the language most used by the project stakeholders. It should contain a concise statement of the project objectives and a brief project description in addition to a description of key project findings and recommendations for environmental management. Section 2: The legislative and administrative framework should be analyzed in terms of the long-term Policy, Legal, and strategy in the context of the project objectives and presents an excellent opportunity to Administrative identify conflicting or overlapping institutional remits and policies and promote Framework cooperation and coordination between development and environment agencies at the national level. Similarly, where applicable, the analysis may focus at least in part on the linkages between the national and local administrative frameworks and opportunities strengthening coordination and cooperation. Section 3: This section should describe the need for the project in the context of the local and national Project Objectives situation and strategy. The effect on economic and social development goals of the locality, and Description country and region should be described. If the project is a sector program, then the main programmatic elements should be presented. Section 4: The availability and sufficiency of baseline data suitable for the preparation of future Baseline Data project specific to the IESIA should be analyzed. Data gaps or needs should be identified and recommendations or TORs for the collection of the critical baseline data should be included. [note the strong relationship between the ADP and the proposed EPAP II and GEF coastal Zone management project and the opportunity to share information and data] Section 5: The likely significant environmental and social impacts arising from implementation of the Environmental and ADP program should be assessed. Typically, these will be considered at the broader macro Social Impacts or regional scale as opposed to a site-specific scale. However, in some cases attention may be focused on specific resources of major environmental, cultural or social concern. Section 6: This is typically a major section of the IESIA and should present a thorough analysis of the Alternatives alternatives considered for proposed project/program. The options considered should Analysis include all relevant solutions and strategies including but not limited to demand management, technologies, setting, timing, etc. In many cases, alternatives may be peculiar to specific sectors and/or the country. The reasons why the various alternatives considered were rejected should be documented. Section 7 : As outlined in OP 4.01 Annex C, the ESMP will define mitigation measures and Environnemental address issues at the policy and administrative level as opposed to the project or and Social sub-project level. In addition to the required elements identified below the ESMP Management Plan will also a) establish of criteria for sub-project prioritization, site selection and other (ESMP) anticipated decision making needs; b) elaborate screening procedures for determining environmental category per type of sub-projects; c) elaborate TORs for project specific Environmental Impact Assessments as determined by the screening process; and As in a project-specific or sub-project ESMP, responsibilities, implementing agencies or consultants, costs and sources of funds should be specified. The standards, guidelines or targets for performance measurement for the monitoring program should be specified as well. This may include socio economic measurements in cases where re-settlement is required. Performance standards are typically based on national legislation and the guidelines contained in the World Bank’s Pollution Prevention and Abatement Handbook, whichever is strictest.

Mitigation The ESMP identifies feasible and cost-effective measures that may reduce potentially significant adverse environmental impacts to acceptable levels. The plan includes compensatory measures if mitigation measures are not feasible, cost-effective, or sufficient. Specifically, the ESMP: (a) identifies and summarizes all anticipated significant adverse environmental impacts (including those involving indigenous people or involuntary resettlement); (b) describes--with technical details--each mitigation measure, including the type of impact to which it relates and the conditions under which it is required (e.g., continuously or in the event of contingencies), together with designs,

Final Report 153 June 21, 2007 equipment descriptions, and operating procedures, as appropriate; (c) estimates any potential environmental impacts of these measures; and (d) provides linkagevol. with 3 any other mitigation plans (e.g., for involuntary resettlement, indigenous peoples, or cultural property) required for the project. Specific to this project the ESMP will provide recommendations for emission and effluent standards Monitoring Environmental and social monitoring during project implementation provides information about key environmental and social aspects of the project, particularly the environmental impacts of the project and the effectiveness of mitigation measures. Such information enables the borrower and the Bank to evaluate the success of mitigation as part of project supervision, and allows corrective action to be taken when needed. Therefore, the ESMP identifies monitoring objectives and specifies the type of monitoring, with linkages to the impacts assessed in the IESIA report and the mitigation measures described in the ESMP. Specifically, the monitoring section of the ESMP provides: (a) a specific description, and technical details, of monitoring measures and indicators, including the parameters to be measured, methods to be used, sampling locations, frequency of measurements, detection limits (where appropriate), and definition of thresholds that will signal the need for corrective actions; and (b) monitoring and reporting procedures to (i) ensure early detection of conditions that necessitate particular mitigation measures, and (ii) furnish information on the progress and results of mitigation. Capacity Development and Training To support timely and effective implementation of environmental project components and mitigation measures, the ESMP draws on the IESIA’s assessment of the existence, role, and capability of environmental units on site or at the agency and ministry level. If necessary, the ESMP recommends the establishment or expansion of such units, and the training of staff, to allow implementation of IESIA recommendations. Specifically, the ESMP provides a specific description of institutional arrangements--who is responsible for carrying out the mitigatory and monitoring measures (e.g., for operation, supervision, enforcement, monitoring of implementation, remedial action, financing, reporting, and staff training). To strengthen environmental management capability in the agencies responsible for implementation, most ESMPs cover one or more of the following additional topics: (a) technical assistance programs, (b) procurement of equipment and supplies, and (c) organizational changes. Implementation Schedule and Cost Estimates For all three aspects (mitigation, monitoring, and capacity development), the ESMP provides (a) an implementation schedule for measures that must be carried out as part of the project, showing phasing and coordination with overall project implementation plans; and (b) the capital and recurrent cost estimates and sources of funds for implementing the ESMP. These figures are also integrated into the total project cost tables. Integration of ESMP with Project The borrower's decision to proceed with a project, and the Bank’s decision to support it, is predicated in part on the expectation that the ESMP will be executed effectively. Consequently, the Bank expects the plan to be specific in its description of the individual mitigation and monitoring measures and its assignment of institutional responsibilities, and it must be integrated into the project's overall planning, design, budget, and implementation. Such integration is achieved by establishing the ESMP within the project so that the plan will receive funding and supervision along with the other components. Section 8: The IESIA process should ensure an appropriate level of coordination with other Summary of government agencies, in obtaining the views of local NGO's and affected groups, and in consultation keeping records of meetings and other activities, communications, and comments and their process disposition. Since the timeline for preparing the IESIA is quite short and that major public opposition to the project is expected, the scoping phase of the IESIA will be shortened and inter-agency and public consultation will be conducted on the basis of an interagency scoping session, and environmental briefings for project staff and interagency committees, a public hearing with potentially affected groups representatives (NGO, unions, etc.) as well as representatives from the media. Appendices 1. List of EA report preparers--individuals and organizations. 2. References -- written material both published and unpublished, used in report

Final Report 154 June 21, 2007 preparation. 3. Tables presenting the relevant data referred to or summarized in thevol. main text 3 4. Documentation of the interagency and consultation meetings, including consultations for obtaining the informed views of the affected people and local nongovernmental organizations (NGOs). The record specifies any means other than consultations (e.g., surveys) that were used to obtain the views of affected groups and local NGOs. 5. List of associated reports (e.g., resettlement plan or indigenous peoples development plan).

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Annex 7 Rating of negative environmental impacts

Final Report 156 June 21, 2007 DEFINITION OF KEY TERMS vol. 3 This section provides definitions of the following terms: • component; • phase; • activity; • aspect; • environmental and social impacts; • environmental and social resources; and • environmental and social receptors.

Box 1 Types of environmental and social impacts

Direct (or primary) – impacts that result from a direct interaction between an activity/aspect and the receiving environment (e.g. between an effluent discharge and receiving water quality, noise for the inhabitants of a street). Secondary – impacts that follow on from the primary interactions between the project and its environment as a result of subsequent interactions within the environment (e.g. loss of part of a habitat affects the viability of a species population over a wider area). Indirect – impacts that result from other developments or activities that are encouraged to happen as a consequence of the original development (e.g. a new development stimulates a requirement for improved road access). Cumulative – impacts that act together with other impacts to affect the same environmental resource or receptor. Permanent: impacts that occur once on development of the project and cause a permanent change in the affected receptor or resource (e.g. the felling of old growth forest as a result of occupation of a site, the diversion of a watercourse). Short-term: impacts that are predicted to last only for a limited period (e.g. during construction, seismic studies, drilling or decommissioning) but will cease on completion of the activity, or as a result of mitigation/reinstatement measures and natural recovery. Long-term: impacts that will continue over an extended period, (e.g. noise from operation of a development, impacts from operational discharges or emissions). These will include impacts that may be intermittent or repeated rather than continuous if they occur over an extended time period (e.g. repeated seasonal disturbance of species as a result of well operations, impacts resulting from annual maintenance activities). Non-Normal Impacts: impacts that result from non-normal events within the project (e.g. breakdowns, failures and emergencies) or in the external environment affecting the project (e.g. floods, seismic activity, landslip). In these cases the assessment should take account of the probability of the event. Local: impacts that affect locally important environmental resources or are restricted to a single habitat/biotope, a single (local) administrative area, a single community. Regional: impacts that affect regionally important environmental resources or are felt at a regional scale as determined by administrative boundaries, habitat type. National: impacts that affect nationally important environmental resources or affect an area that is nationally important/protected. International: impacts that affect internationally important environmental resources such as areas protected by International Conventions. A component is a major element of the ADP project. The project distinguishes 4 project components with several sub-components, comprising a number of items. An overview of the various project components and sub-components is presented in section 0. An item could be for example upgrading of a particular road.

A phase refers to the stage of project implementation. Three phases will be considered in the IESIA: • implementation (design, planning of works, and construction); • operation and maintenance; and • decommissioning.

Final Report 157 June 21, 2007 An activity is a particular action, which is necessary as part of one of the phases. Roadvol. repair 3 and pipe-laying are examples of activities. In some cases, an activity may consist of a series of subsidiary sub-activities.

An aspect is an element of an activity that will, or has the potential to, lead to an environmental or social impact. Examples include noise and light emissions and the generation of solid and liquid wastes.

An environmental impact is an environmental change that occurs as a consequence of an activity. Different types of environmental and social impacts are defined in Box 1.

Environmental and social resources are those elements of the environment that are essential to, or of value to, the functioning of natural or human systems. These include areas or elements of ecological, landscape, agricultural value, soil, air, water and social-economical elements.

Environmental and social receptors are the recipients of environmental and social impacts, in other words, those species of animals and fauna or human beings that are affected. Environmental and social receptors are also people as users of dwellings, users of places of recreation and users of places of employment and community facilities. The IESIA will address the implications of environmental and social impacts on people’s well-being and livelihood.

Impact identification and significance criteria

Despite the overruling positive impacts of the proposed components, the exact modalities of such system would require consideration of negative implications.

An identification of potential negative impacts during the respective project phases is presented in tabular format on the following pages. Furthermore, a preliminary rating of potential impacts is presented. It is noted that this preliminary assessment is based on information that is available at present and will require further confirmation on the ground, especially when the components are developed in more detail.

Impact significance has been categorised into three classes:

• Low • Medium • High

The criteria applied for the three classes are largely based on the expected magnitude of change caused by the project in combination with the value/sensitivity of the receptor/resource.

Final Report 158 June 21, 2007 Box 2 Categories of environmental and social impacts vol. 3

An impact of low significance, hereafter referred to as a ‘minor impact’ is one where an effect will be experienced, but the impact magnitude is sufficiently small and well within accepted standards, and/or the receptor is of low sensitivity/value.

An impact of medium significance hereafter referred to as a ‘moderate impact’, will be within accepted limits and standards. Moderate impacts may cover a broad range, from a threshold below which the impact is minor, up to a level that might be just short of breaching an established (legal) limit.

An impact of high significance, hereafter referred to as a ‘major impact’ is one where an accepted limit or standard may be exceeded, or large magnitude impacts occur to highly valued/sensitive resource/receptors. Also, an impact is classified as significant if no sufficient baseline information that is required for impact identification (lack of knowledge)

The actual impact significance rating depends on a lot of factors, including:

• the magnitude of the impact; • the sensitivity and value of the resource or receptor affected; • compliance with relevant laws, regulations and standards; • views of stakeholders; and • likelihood of occurrence.

The following sections provide, for each of the project activities, an analysis of the various types of impacts that may be identified. Impacts are presented for each of the project phases (Implementation, operation and maintenance, and decommissioning).

It is noted that the determination of the significance of impacts is based upon minimum expectations with regard to the management of HSES issues by the works contractors. In other words, it is assumed that contractor works in accordance with general good construction practices.

It is noted that most impacts, such as air and noise pollution, solid waste management, occupational health and safety risks may be generalised for specific types of project activities (e.g. road construction or sewerage system extensions), where others, such as water pollution and soil erosion may occur only in certain cases.

The identification of such cases is basically based on the results of the reconnaissance level site visits. Where applicable, any such non-generic circumstances are indicated in the tables.

Each of the components/sub-components will be executed by a different contractor. Therefore, each table acts as a stand alone impact analysis for a specific component.

Final Report 159 June 21, 2007 vol. 3

Final Report 160 June 21, 2007 vol. 3

Annex 8 Stakeholders for the ADP

Final Report 161 June 21, 2007 A: National Government vol. 3 Ministry of Local Development Ministry of Agriculture and Land Reclamation Ministry of Health Ministry of Housing, Utilities and Urban Development - GOPP Ministry of Investment Ministry of Labor and Immigration Ministry of Planning - Regional Planning Alexandria, Ministry of Trade & Industry Ministry of Environment - EEAA Ministry of Water Resources and Irrigation (MWRI) B: Local Government Alexandria Governorate - Financial and Admin Affairs - Monitoring and Planning - AGGP PMU - Comprehensive Planning Authority - Development Dept. - Directorate Tourism - Economic Affairs - Housing Dept - Information Centre - Investment - Local Council - Secretariat General - Urban Planning District Offices (Central, Eastern, Western, Gomrok, Montazah, etc.) Egyptian Environmental Affairs Agency - Regional Branch C: Authorities and Operators Alexandria Chamber of Commerce Alexandria Port Authority. Alexandria Sanitary Drainage Company (ASDCO) Alexandria State Land Protection Agency (AMLEK) Alexandria Water Company (AWCO) Dekhila Port Authority EEAA - Cairo Egyptian Survey Authority (ESA) General Authority for Free Zones and Investment (GAFI) General Authority for Industrial Development Free Zones and Investment (GAID) GOPP - Regional Centre for Planning Holding Company Water Supply and Sanitary Drainage Lake Marriout Development Land Protection Authority New Communities Authority - North Coast Development, Real Estate Publicity Department (REPD)

Final Report 162 June 21, 2007 Regulator Water Supply and Sanitary Drainage vol. 3 Roads and Bridges Authority D: Scientific Community Alexandria University Bibliotheca Alexandria, Alex-Med Centre d’Etudes Alexandrine Centre of Environment and Development for the Arabic and European Region (CEDARE) Institute of graduate studies and research. Marine Institute Post Graduate and Research Institute Urban Studies & Planning Centre E: Business Community Abou Keir Fertilizers Company Al Nahda Investors Association Alexandria Businessmen Association Alexandria Petrochemicals Company Alexandria Petroleum Company Borj Al Arab Investors Association Business Facilitation Centre Dekhila Iron Company Egyptian Liquefied Natural Gas Hotels Chamber in Alexandria Investors Association Merghem Investors Association F: Communities (people) Stakeholders groups pilot area (3*) CDA G: Donors, implementing agencies and projects IFC-PEPMEN and FIAS, Business Enabling Environment, Arab Urban Development Institute, Riyadh BDSSP- CIDA Cities Alliance Consulate General de France EPAP II FIAS GEF-Coastal Zone Management GTZ - Upgrading Program IFC - PEP-MENA SFD - Human Development Group, SFD - Health and Population Department, SFD - Public Works Department SFD - Urban Upgrading Consultant SFD - Western Delta Bureau, UNICEF

Final Report 163 June 21, 2007 United Nation Program for Human Settlements vol. 3 World Bank, H: Consultants & Contractos Consultant - Urban Upgrading EHAF/Chemonics Hydroplan/MCE Moharam and Bakhoum I: Non-Gopvernmental Organizations Alexandria Rotary Club Friends of Environment Association J: Others Press -TV5

Final Report 164 June 21, 2007 vol. 3

Annex 9 Announcement and lists of participants in public consultation sessions

Final Report 165 June 21, 2007 vol. 3

Final Report - 166 - June 21, 2007 Key persons interviewed during the first consultation stage vol. 3 Name Job Title / Organization Involvement in Contacts Position the ADP Alexandria Governorate General Mohamed Secretary Alexandria Project Manager Tel.: +203 4872942 Ahmed Bassiouny General Governorate representing Fax: +203 4847192 Alexandria Email: Governorate [email protected]

General Aly Abdel PMU Manager Alexandria Manages and Tel.:+203 4865800 Salam Governorate coordinates the +203 4872942 ADP/PMU +20 3 4870231 activities Ahmed Adam Manager Maps Maintains Department Alexandria and Project Maps Hafez Abdel Latif Economist Alexandria PMU Facilitator Tel.: +203 4872942 Governorate and Coordinator Sooad Helmy Information Alexandria Maintains Alexandria Governorate Office Governorate information and data on Alexandria and the ADP areas. ADP/PMU Consultants Dr. Shaker Helmy Professor of Alexandria Manages the Tel.: +20122266353 Environment University Environmental component of ADP/PMU Dr. Ibtehal Y. El- Professor of Alexandria Consultant to Tel. +20 3 5837301 Bastawissi Architecture University ADP/PMU who Fax: +20 3 582 2107 conducted the Email: participatory [email protected] upgrading of El- Amrawy Dr. Hisham Seoudy Assistant Alexandria Consultant to Tel. +20 10 1359161 Professor University ADP/PMU who Email: [email protected] Architecture conducted the and Urban urban planning for Planning 3 squatter areas Hany El Miniawy Urban Planner Appropriate 002-012-2373238 Development [email protected] Architecture & Planning Technologies Hesham El Helbawy Senior GTZ (German Advisor to the 002-012-1607195 Community Development Governor on [email protected] Development Organization) Slum Areas, Consultant Mohamed Gamal Community GTZ Consultant to 002-010-5169874 Development GTZ (German [email protected] Consultant Development

Final Report - 167 - June 21, 2007 Name Job Title / Organization Involvement in Contactsvol. 3 Position the ADP Organization) on Slum Upgrading

Egyptian Environmental Affairs Agency Dr. Fatma Abou Head of the Egyptian Governmental Tel./Fax: +202 5256475 Shouk Environmental Environmental Authority Email: [email protected] Management Affairs responsible for Sector Agency Reviewing of the IESIA Mohamed Abdel General Egyptian Governmental Tel.: +20 2 5256452 Monem Farouk Director EIA Environmental Authority Fax: +20 2 5260588 Tourism Affairs responsible for Email: [email protected] Projects Agency reviewing the IESIA Mohsen El-Diwany Manager Alexandria Will review and Tel.: +20 3 3011080 Regional coordinate with +20 3 3024477 office of the Alexandria +20 3 3020681 Egyptian Governorate the Environmental ADP Affairs environmental Agency activities Heba Ibrahim Team Leader – Egyptian EPAP II will be Tel.: +20 2 5261419 Mohamed Egyptian Environmental involved in Email: [email protected] Pollution Affairs working with Abatement Agency industries Project - EPAP polluting Lake II Marriout Other Government Organizations Nadia Ebeid Head of “One General 002-012-2274635 Stop Shop”, Authority for 002-010-1748474 Alexandria Investment and Free Zones

Final Report - 168 - June 21, 2007 Participants in the consultative session vol. 3 Name Position Organization Government Institutions General Aly Abdel Salam Manager ADP/PMU Dr. Shaker Helmy Manager – Environment ADP/PMU Mohamed Ahmed Hussein Deputy Manager General Department for Youth Ahmed Mohamed Othman Manager Slum Upgrading Monitoring Unit Hafez Abdel Latif Economist ADP/PMU Nadia Ebeid Chief Investment Services Complex Mohsen El-Diwany Manager EEAA – Alexandria Branch Nivin Mohamed Adel Expert Social Fund for Development - Alexandria Othman El-Gogary Manager Social Fund for Development Nagui Badr Manager Public Projects – Alexandria Khalaf Nasser Manager Ministry of Irrigation Civil Society Mohamed Moharam Member of Board Alexandria Business Association International Organizations Maged Hamed Environmental Expert World Bank Nehad Morsy Expert World Bank Knut Opsal Senior Social Development Wold Bank Specialist Ayman El-Guindy World Bank Officer World Bank Mohamed Gamal Consultant GTZ Ahmed Shawky Documentation Specialist GTZ Technical Consultants Nagwa Kahk Consultant Egyptian Consultant Engineers Mohamed Refaat Consultant Egyptian Consultant Engineers Mostafa Anwar Consultant - Urban Planning Seoudy Consulting Ahmed Gaber CEO Chemonics Egypt Mohamed El-Shorbagy Consultant Chemonics Egypt Khaled Amin Consultant Chemonics Egypt Mona Saad Zaghloul Consultant EHAF Osama Hakam Consultant EHAF

Final Report - 169 - June 21, 2007 Attendance list at the public hearing session vol. 3

# Name Affiliation

1 Dr Yasser Galal Academia 2 Yasser Mokhtar Media 3 Dr. Mohamed Gammal Attwa International Organization 4 Hamdy El Sayed Mohamed Abu Zeid Consultant 5 Dr Fatma Abu Shouk Government 6 Kahlaf Nagy khalf Government 7 Karim Hamdy Mahmoud Government 8 Ahmed Ewieda International Organization 9 Dr. Salah Ahmed Soliman Academia 10 Dr. Othman El Gohary Government 11 Laila Qotb International Organization 12 Nihad Morsy International Organization 13 Hafez Abdel Latif Hafez Government 14 Abdel Moniem Eid Mohamed Business / NGO 15 Dr, Essam Qasem Business 16 Ossama Mohamed Ahmed El Abhar Government 17 Nadia Mahmoud Hassan International Organization 18 Mohamed Hassam Maghraby Business 19 Dr. Mohamed Shaker Abdullah Academia 20 Hamada Mohareb Mohamed Business 21 Ahmed Mahmoud Ahmed Business 22 Waeel Mohamed Government 23 Engineer/ Selim Zahran Business 24 Nagi Ahmed Badr Government 25 Nariman El Sayed Abdel Kader Government 26 Doaa Ahmed Kamel Government 27 Hossam Helmy Saleh Abdeen Government 28 Dalia Mostapha Kamel Government 29 Ahmed Adel Amin Academia 30 Mohamed Abdel Moneim Farouq Othman Government 31 Rania Mohamed Ali Business 32 Rabab Sharaf Media 33 Ali Mohamed Abdel Salam Government 34 Nadia Abdel Hameed Government 35 Engineer / Manal Abdallah Galal Government 36 Ahmed Ibrahim Hassan Government 37 Ahmed Hassan Mostapha Government 38 Mai Mahmoud Mohamed Government 39 Dr, Mohamed Moharam NGO 40 Dr. Mohamed Nasser Darwish Academia 41 Ahmed Salah Academia 42 Karim Mostapha Kamal Mahrous Business 43 Akram Abdel Moa’ty Mostapha Government 44 Cherihan Abdel Waheed NGO 45 Mostapha Morsy El Araby Academia 46 Dr, Aki Fouad Bakr Academia 47 Waheed Farouq Abdel Motelib Business 48 Abdel Salam Mohamed El Kafouory Business 49 Mokhtar El Wasimy Business

Final Report - 170 - June 21, 2007 # Name Affiliation vol. 3 50 Nabil Abou Shal Media 51 Laila Mohamed Abou Samrah Government 52 Mahmoud Salah Abou Rabou Government 53 Mohamed Refaat Business 54 Mohamed El Shorbagy Business 55 Dr. Abu El Naga Academia 56 Ihab Shaalan Business 57 Wael El-Banna Business 58 Shaker Helmy Business 59 Hanaa El-Gohary Business 60 Mostafa Madbouly Business 61 Talaat Government 62 Mohamed Bassiouny Government 63 Manal Mounir Business 64 Ihab Fakhry Business

Final Report - 171 - June 21, 2007 vol. 3

Annex 10 Squatter Settlements and Alexandria’s Urban Upgrading Program

Final Report 172 June 21, 2007 Squatter settlements and Alexandria’s urban upgrading program vol. 3 Background, identification of pilot settlements and approach to urban upgrading: Alexandria has 30 informal/squatter settlements18 that house 1.36 million persons, over one- third of the Governorate’s population and close to 40% of the city’s population. The Alexandria CDS close examined these settlements using Participatory Rapid Appraisal (PRA) in 20 settlements that helped determine among other things community priorities and urban upgrading needs and a citywide upgrading strategy was subsequently developed. The study’s main findings are: (i) high unemployment rate, ranging between 15-20%; (ii) lack of or poor infrastructure coverage, especially water supply (lacking in seven areas), sanitation/wastewater network (non-existent in ten settlements) and a generally narrow unpaved local road network that creates significant accessibility problems; (iii) inadequate local services, especially healthcare, education and youth facilities; (iv) poor housing conditions in some areas, especially in Amriya and Gharb districts, as residents lacking secure tenure are discouraged from investing in home improvement; and (v) lack of secure land tenure in the squatter settlements, and lack of formal title in the informal settlements.

A screening process identified three settlements, called El Amrawy/Mandara (called hereinafter El Amrawy), Naga El Arab, and El Hadara El Gadida, as pilot areas to implement integrated urban upgrading activities to be financed under the ADP and development partners in the first stage (kicking off in the project’s first year). Large-scale household survey were carried out in each area by the SFD to develop an in-depth understanding of the area, validate community needs identified in the PRA process, and develop reliable baseline indicators for monitoring progress. It was also agreed that the same approach will be followed to select another three settlements and identify their investment priorities for financing under the project.

Area District Estimated No. of Estimated No. of Average (Hayy) Inhabitants (2005) Households (2005) Household Size (2005) El Amrawy/Mandara Muntazah 365,000 79,347 4.6

Naga el Arab Gharb 29,000 5,248 5.5

El Hadara el Gedida Wassat 134,000 29,159 4.6 Source: SPAAC/SFD Final Report, April 2006

The identification of the first three pilot settlements relied on the following criteria: (i) pilot areas should represent the various settlement characteristics found in Alexandria in terms of population number, density, households’ socio-economic status, existing state of infrastructure, services and community facilities, and housing conditions, in order to test and develop different modalities of intervention that respond to different conditions, and more importantly emphasize local tailor-made solutions; (ii) interventions should aim to be distributed spatially throughout the city and cover to the extent possible all districts, in part also to undertake on-the-job capacity building for district officials to enable them to engage effectively in subsequent urban upgrading operations; and (iii) interventions should address

18 The official figure was 54 settlements (Ministry of Local Development, 2001), but these were reclassified by Alexandria Governorate during the CDS process according to the reality on the ground, since many such settlements amalgamated as a result of continued growth.

Final Report 173 June 21, 2007 real needs that relate to the existing situation in terms of services and aim to achievevol. a real 3 perceived difference rather than pre-determine an investment amount per household.

As for the different interventions, it was agreed upfront with the different stakeholders that: (i) the project would not finance the construction of school and hospital buildings given that the responsible authorities and line ministries are generally adequately funded at least when compared to local governments, but that Alexandria Governorate would use its lobbying power to ensure that the communities’ needs of schools and hospitals are met in parallel with the ongoing upgrading program; (ii) interventions will include a mix of infrastructure improvements and community facilities, building on the prioritization process by the communities and giving preference to investments with multiple impacts/uses (e.g. post offices are households’ preferred savings’ channel); and (iii) public land available and secure where needed for a given investment.

The following section introduces the first three pilot settlements selected for upgrading activities: El Amrawy/Mandara: El Amrawy/Mandara (hereinafter called El Amrawy) is a very large informal settlement in Muntazah district that is bound by Abu Kir railway (north), 45th street (west), Mustafa Kamel street (south) and Nabawy El Mohandess street (east). It covers 229 hectares and has an estimated population of 365,000 inhabitants in 2005. El Amrawy area formerly consisted of agricultural land (held by some in private ownership but mostly in tenancy to the Land Reclamation Authority or Awqaf) that was converted by informal urbanization and produced a densely built and heavily populated urban area that still continues to grow at 3-3.5% per annum. The area houses multi-story apartment buildings (mostly 4-7 floors but reaching up to 10-15 floors on the fringes), built in many cases on 100% of the land. Despite the area’s heterogeneity, housing is generally of reasonably good quality. Yet, it suffers from severe overcrowding, with 35% of the households having more than two persons per room. El Amrawy also suffers from significant socio-economic problems, including a high unemployment rate (14.3%) especially among youth and a low median monthly household income (LE600, less than two-thirds the median figure for Egypt’s urban areas).

In terms of infrastructure, services and facilities, the following are the key problems facing the settlement: o The existing wastewater networks—whose extension started in the 1960s and 1970s—are severely overloaded as a result of densification. o Despite the area’s adequate location, there are no paved streets/lanes beyond the few main thoroughfares which, for an area housing 10% of the city’s population, create significant access and transportation problems that have a negative effect on residents and business viability and add to health problems. o Lack of access to conveniently located healthcare services (ranked by households as the third most pressing problem), absence of community facilities, and to a lesser extent lack of conveniently located schools.

Implementation of upgrading activities has already started in El Amrawy in May 2005. The activities are mostly completed and the total cost is expected to reach LE5.5m ($0.96m), as seen in Table below. The SFD is financing health and environmental awareness activities, and upgrading a youth center equivalent to LE0.425m ($73,913), implemented through the cluster approach by CDAs. The community-based health interventions were initiated at both

Final Report - 174 - June 21, 2007 the household and community levels, and are carried out in close coordinationvol. with 3 Alexandria governorate, the health directorate and health sector reform program, and the Alexandria family health fund.

Pilot urban upgrading activities in El Amrawy area by the SFD Sub-project Expected Final Expected Final Work done Cost (LE) Cost ($) to-date (%) Canal covering (1.5m wide, 1,850m long) 1,100,190 191,337 100 Youth Center 787,235 136,910 85 Market Area 781,250 135,870 95 Market and Fence 850,000 147,826 80 Two Parking Areas 154,560 26,880 100 Pedestrian walkways 91,368 15,890 100 Pedestrian Bridge 1,750,000 304,348 80 TOTAL 5,514,603 959,061

Naga El Arab: Naga El Arab is a relatively small squatter settlement in Gharb district that extends out into Lake Marriout, and which is bound by Matrouh railway to the north. It covers 29.5 hectares and has an estimated population of 29,000 inhabitants in 2005. The settlement was developed through squatting on State Land (under Amlak department) and through progressive infilling of the Lake Marriout. The northern part, where the earlier squatting took place, is a consolidated and densely-settled area with narrow 4-6m lanes and 3- 5 story buildings (mostly in poor to moderate conditions) while the southern part where the squatting still continues has crude 1-story mud houses in very poor condition. The area is populated mainly by migrants and continues to grow fast. One major problem is serious overcrowding, with 25% of households having more than 3 persons per room. Naga El Arab also suffers from serious socio-economic problems, including a high unemployment rate (17%), a very low median monthly household income (LE470, less than half that for Egypt’s urban areas and equivalent to the 10th percentile of the income distribution), and high illiteracy rate (35% of males and 62% of females aged 30-65 never attended school, while 19% of boys and 13% of girls aged 12-14 dropped out of school).

In terms of infrastructure, services and facilities, the following are the key problems facing the settlement: o The existing sewerage network—whose extension started in the 1970s—has only partial coverage, which means that raw sewage from the settlement is discharged into Lake Marriout. o The area is relatively isolated by the effect of the Matrouh rail line, and half of the streets are unpaved. o Lack of access to conveniently located healthcare services and schools, and total absence of community facilities.

El Hadara Al Gadida: El Hadara Al Gadida is a large informal settlement in Wassat district south of the Mahmoudiya canal and north of the east-west express highway. It covers 101 hectares and has an estimated population of 134,000 inhabitants in 2005. The area formerly consisted of agricultural land (held by some in private ownership but mostly in tenancy to the Land Reclamation Authority or Awqaf) that was converted by informal urbanization and produced a densely built and heavily populated urban area that still continues to grow at 3% per annum. The area houses multi-story apartment buildings (mostly 4-7 floors but reaching

Final Report - 175 - June 21, 2007 up to 10-15 floors along the Mahmoudiya canal), built mostly on 100% of the land.vol. Housing 3 is generally of moderate to good quality, but with some dilapidated single-story structures to the south and squatter housing along the rail line. It also suffers from severe overcrowding, with 36% of the households having more than two persons per room. El Hadara El Gadida also suffers from significant socio-economic problems, including a high unemployment rate (16%) and a low median monthly household income (LE600, less than two-thirds the median figure for Egypt’s urban areas and equivalent to the 23rd percentile of the income distribution). A USAID grant financed a new water and sewerage network with house connections covering 90% of the area that was recently completed. Very recently, a branch rail line serving local factories was removed, leaving a 2.5km long 50m wide right-of-way running in the center of the settlement (called Sadat street), and which has the potential of becoming a main thoroughfare in the area.

In terms of infrastructure, services and facilities, the following are the key problems facing the settlement: o The lack of storm water drainage is a key problem in the area as it lies 1.5m below the Mahmoudiya canal embankment and gets flooded in the rainy season up to 0.5m, causing one of the most pressing problems for the community. o Despite an adequate location, there are no paved streets/lanes in the area, which creates significant access and transportation problems that have a negative effect on residents and business viability and adds to health problems. o Lack of access to conveniently located healthcare services and schools, and total absence of community facilities.