FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PCBASIC0178487
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN
IN THE AMOUNT OF EUR 135, 355,000 (US$148.80 MILLION EQUIVALENT)
Public Disclosure Authorized WITH THE GUARANTEE OF THE REPUBLIC OF TURKEY
TO THE
ILLER BANKASI ANONIM SIRKETI
FOR A
MUNICIPAL SERVICES IMPROVEMENT PROJECT Public Disclosure Authorized
MARCH 16, 2020
This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
Water Global Practice Europe And Central Asia Region Public Disclosure Authorized
CURRENCY EQUIVALENTS
(Exchange Rate Effective February 29, 2020)
Currency Unit = Turkish Lir a 5. 96 TL = US$1 US$0.17 = TL 1
6.62 TL = EURO 1 EURO 0.15 TL 1 Euro 1.0 US$0.9096
FISCAL YEAR January 1 - December 31
Regional Vice President: Cyril E. Muller Country Director: Auguste Tano Kouame Regional Director: Steven N. Schonberger Practice Manager: David Michaud Task Team Leader(s): Sanyu Lutalo, Canan Yildiz
ABBREVIATIONS AND ACRONYMS
AF Additional Financing AFAD Disaster and Emergency Management Authority (in Turkish) AFD French Development Agency (in French) ASA Advisory Services and Analytics ASKI Adana Su Ve Kanalizayson Idaresi (Adana General Directorate of Water and Wastewater Administration) BRSA Banking Regulation and Supervision Agency CAB Community Ablution Block CBA Cost-Benefit Analyses CPF Country Partnership Framework DGMM Directorate General of Migration Management DMA District Metering Area DSI Devlet Su Isleri EBRD European Bank for Reconstruction and Development EC European Commission ESF Environmental and Social Framework ESCP Environmental and Social Commitment Plan ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan EU European Union EUD European Union Delegation FCV Fragility, Conflict and Violence FIRR Financial Internal Rate of Return FM Financial Management FRIT Facility for Refugees in Turkey FY Fiscal Year GHG Green House Gas GoT Government of Turkey GRM Grievance Redress Mechanism GRS Grievance Redress Service GWSP Global Water Sector Partnership ILBANK Iller Bankasi Anonim Sirketi IBRD International Bank for Reconstruction and Development IDA International Development Association IDP Internally Displaced Person IFI International Financial Institution IPF Investment Project Financing IRR Internal Rate of Return ISKUR Turkish Employment Agency (in Turkish)
ISP Implementation Support Plan KASKI Kayiseri Su Ve Kanalizayson Idaresi (Kayiseri General Directorate of Water and Wastewater Administration) KFW Credit Institute for Reconstruction (in German) KOSGEB Small and Medium Industry Development Organization (in Turkish) M&E Monitoring and Evaluation MoFLSS Ministry of Family, Labour and Social Services (in Turkish) MoTF Ministry of Treasury and Finance MoNE Ministry of National Education (in Turkish) MSP Municipal Services Project MSP-AF Municipal Services Project – Additional Financing NEP New Economic Program NGO Non-Governmental Organization NWMP & AP National Waste Management Plan and Action Plan NRW Non-Revenue Water O&M Operational and Maintenance PCN Project Concept Note PDO Project Development Objective PIAP Performance Improvement Action Plan PID Project Identification Document PIU Project Implementation Unit PMU Project Management Unit POM Project Operational Manual PPSD Project Procurement Strategy Document SCADA Supervisory Control and Data Acquisition SCP Sustainable Cities Program SDG Sustainable Development Goal SKI Su Ve Kanalizayson Idaresi (General Directorate of Water and Wastewater Administration) SOE Statement of Expenditure SUTP Syrians under Temporary Protection SCD Systematic Country Diagnostic SWM Solid Waste Management TA Technical Assistance TURKSTAT Turkish Statistical Institute (in Turkish) UN United Nations UNHCR United Nations High Commissioner for Refugees UOTF Utility of the Future WASH Water Sanitation and Hygiene WBG World Bank Group WSS Water Supply and Sanitation WWTP Wastewater Treatment Plant
The World Bank Municipal Services Improvement Project(P169996)
TABLE OF CONTENTS
DATASHEET ...... 1 I. STRATEGIC CONTEXT ...... 7 A. Country Context...... 7 B. Sectoral and Institutional Context ...... 8 C. Relevance to Higher Level Objectives ...... 12 II. PROJECT DEVELOPMENT OBJECTIVE ...... 13 III. PROJECT DESCRIPTION ...... 14 A. Project Components ...... 14 B. Results Chain...... 19 C. Rationale for Bank Involvement and Role of Partners ...... 20 D. Lessons Learned and Reflected in the Project Design ...... 21 IV. IMPLEMENTATION ARRANGEMENTS ...... 22 A. Institutional and Implementation Arrangements ...... 22 B. Results Monitoring and Evaluation Arrangements...... 24 C. Sustainability ...... 24 V. PROJECT APPRAISAL SUMMARY ...... 25 A. Technical, Economic and Financial Analysis ...... 25 B. Fiduciary ...... 27 C. Legal Operational Policies ...... 28 VI. GRIEVANCE REDRESS SERVICES ...... 34 VII. KEY RISKS ...... 34 VIII. RESULTS FRAMEWORK AND MONITORING ...... 37 ANNEX 1: Implementation Arrangements and Support Plan ...... 47 ANNEX 2: Detailed Project Description ...... 55 ANNEX 3: Economic and Financial Analysis ...... 67 ANNEX 4: Procurement ...... 77 ANNEX 5: Communications and Visibility Plan ...... 88 ANNEX 6: Team List ...... 93 ANNEX 7: Project Map ...... 94
The World Bank Municipal Services Improvement Project(P169996)
DATASHEET
BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name
Turkey Municipal Services Improvement Project
Project ID Financing Instrument Environmental and Social Risk Classification
Investment Project P169996 Substantial Financing
Financing & Implementation Modalities
[ ] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC)
[ ] Series of Projects (SOP) [ ] Fragile State(s)
[ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s)
[✓] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict
[ ] Deferred Drawdown [✓] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA)
Expected Approval Date Expected Closing Date
31-Mar-2020 31-Dec-2024
Bank/IFC Collaboration
No
Proposed Development Objective(s)
The Project Development Objective (PDO) is to improve host and refugee communities access to safely managed water supply, sanitation and solid waste services in selected municipalities affected by the influx of Syrians Under Temporary Protection in Turkey.
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Components
Component Name Cost (US$, millions)
Environmental Infrastructure Investments 280.34 Technical Assistance for Project Management and Supervision, Capacity Building, 16.04 Communication and Citizen Engagement
Organizations
Borrower: ILLER BANKASI ANONIM SIRKETI (ILBANK) Implementing Agency: ILLER BANKASI ANONIM SIRKETI (ILBANK)
PROJECT FINANCING DATA (US$, Millions)
SUMMARY-NewFin1
Total Project Cost 296.76
Total Financing 148.80
of which IBRD/IDA 148.80
Financing Gap 147.96
DETAILS-NewFinEnh1
World Bank Group Financing
International Bank for Reconstruction and Development (IBRD) 148.80
Expected Disbursements (in US$, Millions)
WB Fiscal Year 2020 2021 2022 2023 2024 2025
Annual 0.00 8.30 15.00 25.00 40.00 60.50
Cumulative 0.00 8.30 23.30 48.30 88.30 148.80
INSTITUTIONAL DATA
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Practice Area (Lead) Contributing Practice Areas Water Urban, Resilience and Land
Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks
SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)
Risk Category Rating
1. Political and Governance ⚫ Moderate
2. Macroeconomic ⚫ Substantial
3. Sector Strategies and Policies ⚫ Moderate
4. Technical Design of Project or Program ⚫ Moderate
5. Institutional Capacity for Implementation and Sustainability ⚫ Moderate
6. Fiduciary ⚫ Moderate
7. Environment and Social ⚫ Substantial
8. Stakeholders ⚫ Substantial
9. Other ⚫ Substantial
10. Overall ⚫ Substantial
COMPLIANCE
Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✓] No
Does the project require any waivers of Bank policies? [ ] Yes [✓] No
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Environmental and Social Standards Relevance Given its Context at the Time of Appraisal
E & S Standards Relevance
Assessment and Management of Environmental and Social Risks and Impacts Relevant
Stakeholder Engagement and Information Disclosure Relevant
Labor and Working Conditions Relevant
Resource Efficiency and Pollution Prevention and Management Relevant
Community Health and Safety Relevant
Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant
Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources
Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant Local Communities
Cultural Heritage Relevant
Financial Intermediaries Relevant
NOTE: For further information regarding the World Bank’s due diligence assessment of the Project’s potential environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review Summary (ESRS).
Legal Covenants
Sections and Description Schedule 2, Section I.A.1(a). The Borrower shall maintain, until the completion of the Project, a Project Management Unit (“PMU”), established within its International Relations Department, and responsible for coordinating and supervising Project implementation, and for providing implementation support to Selected Municipalities and SKIs.
Sections and Description Schedule 2, Section I.A.1(b). The Borrower shall ensure that the PMU functions at all times in a manner and with staffing, budgetary resources, and authority necessary and appropriate for satisfactory Project implementation, and all of which shall be acceptable to the Bank (said staffing shall include (i) an environmental expert, (ii) a social expert, and (iii) a communications and stakeholder specialist).
Sections and Description
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Schedule 2, Schedule 1, Section I.A.2. By no later than ninety (90) days after the Effective Date, the Borrower shall execute and deliver the Grant Agreement, and shall fulfill all conditions precedent to the effectiveness of, or to the right of the Borrower to make withdrawals under, said Grant Agreement.
Sections and Description Schedule 2, Section I.A.3. By no later than thirty (30) days after the signing of the first Sub-loan Agreement or Sub- grant Agreement between the Borrower and a Selected Municipality or SKI, the Borrower shall: (a) ensure that the Selected Municipality or SKI establishes a Project implementing unit to carry out its respective Sub-project activities; and (b) cause the respective Selected Municipality or SKI to ensure that its Project implementing unit functions at all times during Project implementation in a manner and with staffing, budgetary resources, and authority necessary and appropriate for satisfactory Project implementation, and all of which shall be acceptable to the Bank.
Sections and Description Schedule 2, Section I.B.1. The Borrower shall maintain, throughout Project implementation, a Project Operational Manual (“POM”), in substance and manner acceptable to the Bank.
Sections and Description Schedule 2, Section I.B.2. The Borrower shall carry out the Project, and cause the Project to be carried out, in accordance with the arrangements, procedures and guidelines set forth in the POM.
Sections and Description Schedule 2, Section I.C.1. With respect to Part 1 of the Project, the Borrower shall make Sub-loans to Selected Municipalities and SKIs for the carrying out of Sub-projects, all in accordance with eligibility criteria and procedures, and on terms and conditions, acceptable to the Bank and as set forth in the Loan Agreement’s Schedule 2, Section I.C, the Loan Agreement’s Annex to Schedule 2, and the POM.
Sections and Description Schedule 2, Section I.C.2. Unless otherwise agreed to between the Bank and the Borrower, the eligibility of any said Sub-project investment proposed for financing under Part 1 of the Project shall be appraised and selected in accordance with standards, criteria and procedures acceptable to the Bank, which shall include determining that the proposed investment: (a) is aligned with the Project objective; (b) serves an area or areas that has/have a significant presence of SuTP; (c) is technically feasible; (d) is economically and financially viable; (e) is demand and needs driven; (f) demonstrates substantial readiness; (g) is environmentally and socially sustainable; and (h) is in compliance with, and can be designed and implemented in a manner in compliance with the Bank’s fiduciary requirements, Bank’s Environmental and Social Standards, the Loan Agreement’s Schedule 2, Section I.D, the Environmental and Social Commitment Plan, and the Environmental and Social Instruments, and all other relevant terms of the Loan Agreement, including the exclusion of Excluded Activities.
Sections and Description Schedule 2, Section I.C.3. The Borrower shall obtain the Bank’s approval of a proposed Sub-project and Sub-loan prior to the execution of a Sub-loan Agreement with the Selected Municipality or SKI concerned.
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Sections and Description Schedule 2, Section I.C.4. The Borrower shall extend each Sub-loan under a Sub-loan Agreement with the respective Selected Municipality or SKI on terms and conditions approved by the Bank, including, without limitation, the terms and conditions set forth in the Loan Agreement’s Annex to Schedule 2 and the POM.
Sections and Description Schedule 2, Section D.1 and 2. The Borrower shall, and shall cause the Selected Municipalities and SKIs to, ensure that the Project is carried out in accordance with the Environmental and Social Standards, and implemented in accordance with the Environmental and Social Commitment Plan, in a manner acceptable to the Bank.
Sections and Description Schedule 2, Section E. The Borrower shall prepare and furnish to the Bank not later than April 15 of each year during the implementation of the Project, a proposed Annual Work Plan and Budget, afford the Bank a reasonable opportunity to exchange views on each such proposed Annual Work Plan and Budget, and ensure that the Project is implemented with due diligence during said following year, and not make or allow to be made any change to the approved Annual Work Plan and Budget without the Bank’s prior written approval.
Conditions
Type Description Effectiveness The Borrower has adopted a Project Operations Manual acceptable to the Bank (Article IV: Section 4.01 (a)).
Type Description Effectiveness The Borrower has properly staffed its Project Management Unit , with positions, terms of reference, and staff qualifications acceptable to the Bank (Article IV: Section 4.01 (b)). .
Type Description Effectiveness The Borrower has properly adjusted its existing grievance redress mechanism for the purposes of the Project, and operationalized said mechanism, all in manner and form acceptable to the Bank (Article IV: Section 4.01 (c)).
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I. STRATEGIC CONTEXT A. Country Context
1. Turkey has high growth potential, but recent shocks have affected the sustainability of its economic gains since the early 2000s. After the Global Financial Crisis in 2008-2009, growth has been increasingly fueled by credit booms and rapid accumulation of (mostly foreign exchange) private sector debt, together with short-term stimulus policy. These led to declining productivity and growing macroeconomic imbalances in late 2017/early 2018. The situation was compounded by exogenous factors including multiple election cycles, regional conflict, and difficult international relations. The ensuing volatility in growth has affected the sustainability of Turkey’s economic gains.
2. Economic vulnerabilities that had accumulated over the past 4 years came to a head in mid-2018. Policy stimulus in the aftermath of the 2016 failed coup attempt led to economic overheating. Though growth accelerated to 7.4 percent in 2017, this came at a cost of double-digit inflation and a large current account deficit. A hardening of external economic conditions in mid-2018, together with tense international relations, led to a collapse in the Lira. This profoundly affected the real and financial sectors. Corporations and banks suffered due to high foreign exchange debt, annual inflation peaked at 25 percent in October 2018, the economy went into recession in 2018, and unemployment spiked from 10 percent in January 2018 to 14 percent in June 2019 (World Bank 2019a, 2019b).
3. The Turkish economy over the past 12 months has experienced major adjustments. Current account imbalances have declined, banks have reduced their external exposure and portfolio flows have started to recover. These adjustments have lessened external vulnerabilities that had accumulated in the run up to the August 2018 currency shock. They have also contributed to a more stable Lira, notwithstanding bouts of currency volatility. There has also been steady disinflation over this period. These developments were supported by selected policy responses and accommodative global monetary conditions. Even so, foreign exchange reserves have gotten eroded over the past two years, exposing Turkey to external market pressure.
4. Stagnating output, high costs of production, and high consumer prices have led to significant job losses and falling real wages. Unemployment among the youth is particularly high, jumping from 19 percent to 25 percent between May 2018 and May 2019. Average real wages declined by 2.6 percent between 2017 and 2018, though have picked up more recently due to adjustments to the minimum wage. Poorer households have been most impacted because many low-income workers are employed in construction and agriculture – the sectors that saw the biggest decline in jobs. Moreover, the long-term impact of the real wage effects is greater for the poorest households since they have limited coping mechanisms.
5. Turkey now faces a two-fold challenge: in the near-term to extricate itself from a downturn while inflation is high (albeit declining), the external environment is uncertain, and firms are struggling with debt; and to put in place appropriate policy and institutional settings to support a shift to a sustainable-medium term growth model. The pace and sustainability of Turkey’s recovery will depend on reducing economic uncertainty backed by consistent policy mix. The economy has stabilized in the short-term. GDP is projected to rebound to 3 percent and 4 percent in 2020 and 2021, respectively. However, given the high degree of uncertainty in the global outlook, restoring confidence and reducing domestic risk premia with appropriate monetary stance and effective fiscal policy would be key for sustaining recovery. Rigorous progress in advancing structural reforms such as deepening financial markets and completing overdue labor market reforms will help to mitigate vulnerabilities, and support growth in the medium term.
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6. Turkey is both a transit and reception country for migrants and refugees and, globally, the country hosts the highest number of refugees.1 As a result of the crisis in its southern border with Syria, Turkey has been hosting an increasing number of refugees and foreigners seeking international protection. In addition to hosting more than 3.6 million Syrians2, who are under temporary protection, there are an estimated 400,000 asylum seekers and refugees from other nationalities. The country’s refugee response has been progressive and provides a model to other countries hosting refugees. However, the magnitude of the refugee and migrant influx continues to pose substantial development consequences for not only the displaced but also the communities into which they settle, contributing to the expansion and overcrowding of settlements, increased demands for urban services (including water supply, sanitation and solid waste services), additional pressure on infrastructure and the urban environment, conflicts over land, and increased competition for employment, housing, and social services. These stresses stretch the limited capacity of urban local governments, including municipalities and other service providers. Apart from the large cities such as Ankara, Istanbul and Izmir, many of the cities hosting a high concentration of Syrians are already located in the more vulnerable or disadvantaged provinces in Turkey, which exacerbates the development challenges.
7. The Government of Turkey (GT) spent an estimated EUR 31 billion to meet the needs of refugees and hosting communities from the beginning of the Syrian crisis to 2017.3 This includes the provision of free healthcare and education possibilities, as well as allowing legal access to the labor market. The international community has also provided over EUR 4 billion since 2016, of which 95 percent is from the European Union (EU).4 This includes the first tranche of the EU Facility for Refugees in Turkey (FRiT), which is an EUR 3 billion fund launched in 2016, designed to support the GoT hosting refugees, EUR 600 million EU support outside of the FRiT, and over EUR 400 million in bilateral support from EU countries. Other donors, UN agencies, international, national and local civil society organizations, as well as International Financial Institutions (IFIs), have also been playing an important role in Turkey’s refugee response, implementing a diverse range of programs and projects, accounting for over EUR 200 million. These efforts have been geared primarily towards facilitating refugee access to existing public services while strengthening the capacity and responsiveness of state institutions at the national and local levels.
B. Sectoral and Institutional Context
8. A legal framework was established to tackle challenges due to the influx of refugees in Turkey by issuing Law No. 6458 on Foreigners and International Protection in 2013 and Regulation No. 29153 on Temporary Protection of Syrians in 2014. While the primary responsibility for emergency response and coordinating humanitarian needs, including management of the refugee camps, are fulfilled by the Disaster and Emergency Management Authority (AFAD), relevant ministries and local authorities, depending on their respective area of jurisdiction, assume responsibility to provide registered refugees with access to municipal services, education, healthcare, social services, and labor markets.
1 DGMM. 2019. This PAD uses the term refugee regardless of country of origin, although Syrians are under temporary protection status, and non-Syrians under international protection law. http://www.goc.gov.tr/icerik6/temporary-protection_915_1024_4748_icerik 2 The terms “Syrians” and “refugees” are used in terms of sociological context and widespread daily use, and independent of the legal context in Turkey and Turkish Law. Turkey is a party to the 1951 Refugee Convention and 1967 Protocol. Turkey retains a geographic limitation to its ratification of the 1951 UN Convention on the Status of Refugees, which means that only those fleeing as a consequence of “events occurring in Europe” can be given refugee status. Syrian nationals, as well as stateless persons and refugees from Syria, who came to Turkey due to events in Syria after 28 April 2011 are provided with temporary protection. 3 European Commission (2018): Technical Assistance to the EU Facility for Refugees in Turkey – Updated EU Needs Assessment. October 2018. Refer to: https://ec.europa.eu/neighbourhood-enlargement/sites/near/files/updated_needs_assessment.pdf 4 Ibid.
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9. The scope of the current project is primarily limited to infrastructure and technical assistance relating to water supply and sanitation (WSS) and solid waste management, even though municipal services in general cover a broader range of sub-sectors5, based on priority action areas identified under the FRiT Municipal Infrastructure Window in the 2018 Needs Assessment6 prepared by the EU. Four out of five priority action areas focused on activities in the mentioned environmental infrastructure sub-sectors, while the fifth area focused on other municipal services which included transport, recreational area needs and migrant information and coordination centres, and community and culture centres. The Bank in its proposal to the EU to access the grant made a strategic choice to limit the focus areas to the WSS and solid waste sub-sectors to reduce the complexity of the project scope given the limited implementation period and available resources. Other development partners were subsequently invited by the GoT through ILBANK to address the other municipal services under the fifth priority area.
10. The WSS sector has undergone several reforms over the years and roles are currently distributed among several institutions. The 1926 Water Law places the overall responsibility for water resources management at the state level. This was confirmed in the Constitution of 1982 that provided that the state owns the right to explore and operate these natural resources but can transfer this right to private institutions for a defined period. Municipalities are responsible for WSS services in their respective areas. In 1984, starting with Istanbul, Turkey created 16 “metropolitan municipalities7” (MM) by consolidating the municipalities in the main urban areas. The Su Ve Kanalizayson Idaresi (General Directorate of Water and Wastewater Administration) “SKI” is established in every metropolitan municipality to manage water supply and sanitation (WSS) services in accordance with the provisions of Law No 2560. SKIs are public entities or utilities that are affiliated with the metropolitan municipality and have an autonomous budget. A new law that came into effect on March 31, 2014, created 14 new metropolitan municipalities and SKIs and extended the service area of all metropolitan municipalities to cover the entire province. As a result, there are 30 SKIs responsible for providing WSS services to about 77 percent of the population. Other smaller municipalities provide WSS services through municipal departments. Special provincial administrations (SPAs) provide services in non-municipal areas. Responsibility for solid waste management rests with the respective municipalities.
11. Goal 6 of the UN 2030 Agenda for Sustainable Development Goals (SDG 6) calls for Ensuring Availability and Sustainable Management of Water and Sanitation for All. The goal addresses water supply, sanitation and hygiene (SDG Targets 6.1 and 6.2), treatment, recycling and reuse of wastewater (Target 6.3), increasing efficiency and ensuring sustainable withdrawals (Target 6.4), and protection of water-related ecosystems (Target 6.6) as part of an integrated approach to water resources management (Target 6.5). It also focuses attention on the links between development outcomes and means of implementation (6a and 6b). The Goal specifically seeks to achieve universal and equitable access to safe and affordable drinking water for all by 2030. While Turkey is considered to be advanced in terms of availability of water and sanitation services for most of its population in terms of overall access, sustainable management8 of these services remains a challenge in many municipalities. Moreover, climate change is expected to compound this challenge.9
5 Municipal services may cover a broad range of basic services that include, inter alia, sanitation (both wastewater/excreta management and solid waste), water supply, recreational facilities, street cleaning services, public libraries, schools, food inspection, fire services, law enforcement, ambulance and other health department services, and transportation.. 6 EU Facility for Refugees in Turkey - Updated Needs Assessment 2018: https://ec.europa.eu/neighbourhood- enlargement/sites/near/files/updated_needs_assessment.pdf 7 Metropolitan municipalities represent municipalities with population in excess of 750,000 people. 8 Sustainable WSS services are able to effectively deliver adequate consumer needs and are economically and financially viable, socially acceptable, technically and institutionally appropriate, and protect the environment and natural resources. 9 A 2016 Systematic Country Diagnostic (SCD) for Turkey, prepared by the World Bank, concluded that, given its large population and high
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12. The sixth target under SDG 11 focuses on reducing the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management by 2030. Progress towards this target is to be monitored though measurement of the proportion of urban solid waste regularly collected and with adequate final discharge. Municipal solid waste is one of the major environmental problems in Turkey. While most of the population receives waste collection services, the majority of solid waste is not disposed in accordance with the relevant legal requirements and standards, and about 44 percent of the collected municipal waste is disposed to dump sites. Uncontrolled and illegal disposal methods like dumping and discharge into rivers and lakes also occur in several parts of the country.
13. A World Bank Sector Note on Sustainable Urban Water Supply in Turkey10 cited increasing water demand and scarcity in Turkey, with the cumulative water demand for domestic, industrial, and irrigation uses expected to exceed the water available before the end of the century. Water demand is expected to increase from 43 billion m3 in 2015 to 54 billion m3 by 2020 and to 62 billion m3 by 2100, with models predicting that the decrease in water availability will be more severe in central provinces and provinces located on the southern and western shores of Turkey. There is therefore a need for increased efficiency in the use of water resources especially in these regions.
14. While piped water coverage is relatively high in Turkey, more than 40 percent of water is distributed untreated, which increases risks linked to poor water quality, including to public health. According to Municipal Water Statistics prepared by TURKSTAT in 2018, 99 percent of the population living in municipalities has access to piped water supply, however only 60 percent are served by a water treatment plant. The municipalities targeted in this project face significant water supply service challenges, including poor quality water due to inadequate water treatment facilities. Thus, based on the SDG definition of a safely managed drinking water service as one located on premises, available when needed and free from contamination, the municipalities are out of compliance with these service requirements, putting Turkey at risk of not fulfilling the SDG goal if not addressed. Service efficiency is also an issue, with utilities having high Non-Revenue Water (NRW), in some cases with over 50 percent losses, due to ageing or sub-optimally maintained transmission and distribution infrastructure. NRW in utilities averages about 36 percent country-wide.
15. Similarly, while access to sewage networks is relatively high, a significant proportion of wastewater is discharged untreated into the environment. According to TURKSTAT Municipal Wastewater Statistics for 2016, 90 percent of the population living in municipalities are served with a sewage network. However, only 70 percent of the population is served with a wastewater treatment plant. In individual municipalities coverage is lower, and the quality of sewerage infrastructure is inadequate, resulting in sewage leakages. These conditions not only impact the environment, but also lead to significant increases in operation and maintenance costs of the systems. With higher populations, impacts on the environment are increased. The current situation in the areas with no wastewater treatment puts the affected municipalities out of compliance with the SDGs, which define safely managed sanitation, as the use of an improved sanitation facility which is not shared with other households and where excreta is safely disposed in-situ or is transported and treated off-site. Access to safely managed11 water supply and sanitation services at the neighborhood level in individual municipalities, especially in the lower income neighborhoods in urban
level of water consumption, the country faces a significant water security threat from climate change—to manifest itself as potential droughts associated with the rising temperatures, changes in precipitation patterns, and reduced seasonal snow storage. 10 Republic of Turkey - Sustainable Urban Water Supply and Sanitation, World Bank, 2016. 11 According to the definition from the United Nations Sustainable Development Goals (SDGs), a safely managed drinking water service is defined as one located on premises, available when needed and free from contamination. Goal: By 2030 achieve universal and equitable access to safe and affordable drinking water for all.
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areas and peri-urban agricultural areas, which are inhabited by both Turkish citizens and SUTPs is a major issue.
16. In addition to those challenges, the rapid influx of refugees has generated a significant additional burden on already strained WSS services. While the Government has embarked on an extensive rehabilitation and development process nationwide to improve water quality nationally and to ensure that all rural and urban residential and industrial areas have access to safe drinking water, the sizeable population increase due to the refugee influx in many municipalities is further exacerbating pressure on existing infrastructure, requiring additional investments in water treatment and distribution systems. The provinces located in the South Eastern part of Turkey in particular, which remain the prime target of the Turkish Government’s development program, have seen the greatest negative impact in this regard. In individual municipalities, access to safely managed12 water supply services at the neighborhood level is an issue, especially in the lower income neighborhoods and settlements which are inhabited by both Turkish citizens and refugees or SUTPs.
17. There is evidence that existing solid waste disposal capacities in some affected municipalities are being strained due to the refugee influx in affected areas. This increase in waste generation has an impact on the lifetime of waste collection vehicles and equipment, as well as disposal sites. While solid waste collection rates in Turkey are relatively high, a significant proportion of the waste is not disposed properly in landfills. According to the 2016 National Waste Management Plan and Action Plan (NWMP&AP) data, just over 60 percent of the municipal waste is sent to sanitary landfills, 28 percent is dumped into municipal dumpsites, and 11 percent was reported as recycled, composted or disposed of by other methods.
18. Turkey’s rapid industrialization and urbanization growth during the last two decades has caused its environmental footprint to increase rapidly, with total GHG emissions rising from 208 MtCO2e (in 1990) to 526 MtCO2e (in 2017)13. At the same time, climate change is further exacerbating already observed vulnerabilities and environmental risks, such as the intense flash floods in the Marmara region in September 2009, with 32 human losses and more than US$100 million of economic damage, as well as the recent floods in July-August 2019 in Northeastern Turkey. While there are no detailed climate change assessments that reflect conditions at each individual municipality level, Turkey has the highest risk of water safety in the arid and semi-arid regions including the Southeast, Central Anatolia, Aegean and Mediterranean. Most of the projections suggest a temperature increase of 3–4 °C on average across Turkey (from 2041 to 2070)14 and uneven changes in the precipitation patterns, which are in turn expected to impact a number of sectors, including the availability of water resources across the country and the incidence of floods, associated with intense precipitation and coastal storms. Climate change impacts are expected to lead to more frequent and severe climate extreme events, including droughts (as highlighted in footnote 9), which could result in a disruption of critical municipal services and pose additional challenges to the existing urban infrastructure and well-being of the urban population. In addition, water pollution (caused by untreated industrial wastewater being discharged in rivers, among
12 According to the definition from the United Nations Sustainable Development Goals (SDGs), a safely managed drinking water service is defined as one located on premises, available when needed and free from contamination. Goal: By 2030 achieve universal and equitable access to safe and affordable drinking water for all. 13 Sources: http://www.turkstat.gov.tr/PreHaberBultenleri.do?id=30627 and OECD Environmental Performance Reviews: Turkey 2019 (https://www.oecd-ilibrary.org/environment/oecd-environmental-performance-reviews-turkey-2019_9789264309753-en) 14 Sources: OECD Environmental Performance Reviews: Turkey 2019 ); (https://www.oecd-ilibrary.org/environment/oecd-environmental- performance-reviews-turkey-2019_9789264309753-en ; Turkey’s National Climate Change Adaptation Strategy and Action Plan, T.R. Ministry of Environment and Urbanization, November 2011, Ankara (1st edition) and T.R. Ministry of Environment and Urbanization, August 2012, Ankara (2nd edition) (http://www.dsi.gov.tr/docs/iklim-degisikligi/turkeys-national-climate-change-adaptation-strategy- and-action-plan.pdf?sfvrsn=2) ;
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other things) could significantly reduce in water quality. Against this background, conserving the quantity and quality of water resources is essential for the country’s long-term growth and sustainability.
19. Turkey’s Climate Change Action Plan (2011–2023) identified actions aimed at increasing national preparedness and capacity to avoid the adverse impacts of climate change and to adapt to its impacts. In 2015, Turkey submitted its Intended Nationally Determined Contribution to the United Nations Framework Convention on Climate Change, committing to reduce its greenhouse gas (GHG) emissions by up to 21 percent by 2030 compared to the business-as- usual scenario, to be achieved through several new policies and measures, including those related to energy efficiency improvements.
20. Currently, municipalities have limited financial capacity to design and implement climate- and resilience-related investments, which is recognized as one of the key constraints for climate action in Turkey. The Project provides the opportunity to build capacity for screening, preparing, and implementing sub-projects which consider climate and disaster resilience, particularly in terms of addressing increasing risks of extreme weather events such as floods and droughts, and increasing difficulties in managing urban water resources during more intense and lengthy drought periods. It also provides the means to invest in mitigation and strengthening a range of such climate adaptation measures in municipalities, which are increasingly susceptible to climate change risks.
21. Given the strain that the refugee influx has generated on water, wastewater and solid waste services, grant financing has been extended in the amount of EUR 139,812,40015 by the European Development Fund (EDF) under the Municipal Infrastructure Window of the FRiT and the ILBANK has requested an IBRD loan in the amount of EUR 135,355,000 for a project to support municipal services improvements in several municipalities impacted by refugees. The targeted municipalities were selected from a list of ten affected areas identified through the 2018 EU Needs Assessment, based on criteria such as the number of refugees and the magnitude and scope of municipal infrastructure needs. At the time of appraisal, sub-projects in five municipalities: Adana, Kahramanmaraş, Osmaniye, Kayseri and Konya, were identified to participate in the project based on eligibility criteria described under Section III below (Project Description). These municipalities had a total population of about 7.4 million people in 2018, including about 540,000 registered refugees. They already suffer from significant operational problems such as high water losses, inadequate water treatment facilities, ageing WSS infrastructure, inadequate solid waste management, and lack of wastewater treatment.
C. Relevance to Higher Level Objectives
22. The World Bank Group views the development challenge of forced displacement as a corporate priority and a long- term challenge that must be addressed to attain the Bank’s twin goals of reducing poverty and achieving shared prosperity. The project would leverage the important partnership with the European Union which is providing grant support from the EU FRIT to be blended with proposed IBRD to support targeted municipalities in Turkey in addressing the increased pressure from Syrian refugees. Other development partners, such as the French
15 The project is expected to receive grant funding from the second tranche of the European Commission’s Facility for Refugees in Turkey (FRIT), in the amount of about Euro 134,219,904, excluding World Bank fees, remuneration and Bank executed operational costs. An application for the grant financing was submitted by the World Bank on March 15, 2019, and the EC through a letter dated May 27, 2019 authorized the Bank to formally negotiate the details of the project with the EU delegation in Turkey, to lead to a formal Contribution Agreement. Signing of the Administration Agreement (AA) between the World Bank and the EC for the Grant is subject to finalization of an update to the 2016 World Bank Group-EU Framework Agreement, which is under discussion by the parties. Accordingly, the grant financing is reflected as a financing gap in the Project documentation until the AA has been signed.
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Development Agency (AFD), United Nations Development Programme (UNDP) and European Investment Bank (EIB) will also engage in supporting implementation of municipal infrastructure projects in other municipalities not covered by the World Bank.
23. The proposed project is consistent with the World Bank Country Partnership Framework (CPF) for Turkey for the FY 2018-202116 period, discussed by the Board on August 29, 2017 (Report No. 11096-TR), and is aligned with the objectives of Turkey’s 11th Development Plan (2019–2023). The CPF is based on the findings of the Systematic Country Diagnostic (finalized in 2016) that highlighted water availability and sustainable use as being key challenges for Turkey’s future development. The CPF has three focus areas: (1) Growth; (2) Inclusion; and (3) Sustainability. Under Focus Area 2 (“Inclusion”) the WBG support in this area aims to consolidate Turkey’s success towards achieving the twin goals while also supporting efforts to reach those who are left behind. An important evolution of the WBG program in this CPF area has been and will continue to be the introduction of new investment operations financed by the EU’s FRiT which specifically sets the target to improve the situation of Syrians under Temporary Protection (SuTPs) (or refugees17) in Turkey. Under Focus Area 3 (“Sustainability”) the Project will support the Strategic Objective 8 to improve sustainability and resilience of cities, specifically against the climate change-related risks of floods and droughts, and Strategic Objective 9, to increase sustainability of infrastructure assets and natural capital.
II. PROJECT DEVELOPMENT OBJECTIVE
24. A.Project Development Objective 25. 24. The project development objective is to improve host and refugee communities access to safely managed18 water supply, sanitation19 and solid waste services in selected municipalities affected by the influx of Syrians Under Temporary Protection in Turkey.
B. PDO Level Indicators
25. The key results (PDO level indicators) are presented below:
• Total number of people benefitting from safely managed drinking water services in the selected municipalities as a result of the project (out of which female (%); host population (number); refugees (number)) • Total number of people benefitting from safely managed sanitation services in the selected municipalities as a result of the project (out of which female (%); host population (number); refugees (number)) • Total number of people benefitting from safely managed solid waste services in the selected municipalities as a result of the project (out of which female (%)); host population (number); refugees (number))
15 Refer to Report No. 11096-TR: http://documents.worldbank.org/curated/en/585411504231252220/pdf/Turkey-CPF-08072017.pdf 17 Refugees in this context include both SUTPs and other refugees from other countries living among host communities includes Iraq, Afghanistan, Iran and others, who are under the status of international Protection. 18 Safely managed water supply focuses on ‘accessibility’, ‘availability’, and ‘quality’, and is defined as drinking water from an improved water source which is located on premises, available when needed and free of faecal and priority contamination. ‘Improved’ sources are those that are potentially capable of delivering safe water by nature of their design and construction, including piped water, boreholes or tube wells, protected dug wells, protected springs, and rainwater. 19 Safely managed sanitation refers to the use of improved facilities which are not shared with other households and where excreta are safely disposed in-situ or transported and treated off-site before disposal. Sanitation in this context mainly refers to wastewater and excreta management services.
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C. Project Beneficiaries
26. A total of about 3.3 million people, including refugees and host communities in the municipalities targeted under this project (out of which about 50 percent are women) are expected to benefit from the project. Of these, approximately 301,890 refugees (or 9 percent of the total beneficiaries) and 3,021,000 of the host population are expected to benefit directly from the municipal investments. Other beneficiaries will include the municipalities and municipal service providers (water and wastewater utilities) in the project areas, who will benefit from capacity building efforts financed through Component 2 to improve their capacity to more effectively manage the operation and maintenance of the environmental infrastructure, as well as commercial operations such as handling all their customers in an equitable and socially sensitive manner, in order to provide sustainable services that take into consideration climate change mitigation and adaptation aspects. ILBANK will also benefit from training in overall project management of operations involving refugee affected areas. The project is an opportunity for continued learning to the Government of Turkey, the World Bank, and other key stakeholders on an adequate business model for improving municipal service interventions in the context of situations of urgent need due to forced urban migration or displacement.
III. PROJECT DESCRIPTION
A. Project Components
27. The Project will finance environmental infrastructure investments and technical assistance (TA) through the provision of sub-loans and/or grants to support selected municipalities in dealing with the increased pressure on the defined municipal services, in particular water supply, sanitation and solid waste management, in a sustainable20 and equitable manner, taking into account the needs of the entire population including the most vulnerable among host and SUTP populations. The activities will also aim to enhance the resilience of the infrastructure, as well as that of the targeted communities to climate change–exacerbated risks such as droughts, floods, and degraded water quality, and also raise awareness of the mitigation measures to be derived from improved efficiency of the water supply and sanitation service delivery and improved solid waste management. The Project design ensures that careful attention is paid to gender and citizen engagement corporate priorities in the World Bank, both of which are central to the development of an inclusive and responsive approach to development among the host and SUTP communities.
28. Municipality and Sub-project eligibility. The Project funds will be channeled through a public, national-level financial intermediary banking institution, ILBANK, which will in turn on-lend or on-grant it, as applicable to a number of municipalities or utilities (SKIs) based on a framework approach for sub-projects that meet eligibility criteria for participating in the project. Eligible municipalities were identified in the EU Needs Assessment. At appraisal, sub- projects in five municipalities: Adana, Kahramanmaraş, Osmaniye, Kayseri and Konya, meeting the above criteria were identified to participate in the project. The eligibility criteria for sub-projects will be defined in the Project Operational Manual (POM), and include, inter alia: (a) a significant presence of SUTP in the host municipality as identified in the EU Needs Assessment; and (b) municipal investments aligned with the PDO that are: (i) technically feasible; (ii) economically and financially viable; (iii) demand and needs driven, and that demonstrate substantial readiness, including having approved feasibility studies, detailed designs and draft safeguards documentation in line with World Bank ESF requirements; (iv) environmentally sustainable and in compliance with, and can be designed and implemented in manner incompliance with the Bank’s fiduciary (including financial and procurement)
20 Sustainability in this case addresses technical, environmental, economic/financial, and social dimensions of the project.
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requirements, and the Bank’s Environmental and Social Standards, consistent with the Environmental and Social Commitment Plan for the project (ESCP), and the Environmental and Social Instruments; (v) that do not trigger World Bank Operational Policy (OP) 7.50 (Projects on International Waterways); and (iv) that involve no new dams or dams under construction. All sub-projects to be financed from the grant and loan are subject to approval by ILBANK and the World Bank and EUD, as applicable21. ILBANK follows the financial eligibility criteria in accordance with the existing Law on Regulating Public Finance and Debt Management (Law No. 4749) which restricts borrowing by any institution if it has overdue payments to Treasury for its on-lending to each municipality. Municipalities/utilities would be required to provide a Municipal Resolution/Utility Board decision stating that project financing would be sought for the proposed subprojects. Where the sub-borrower is a utility/SKI, a guarantee from the metropolitan municipality is also required. In the solid waste management sector, the grant beneficiary/ loan sub-borrower will be the municipality in line with existing institutional roles, while the beneficiary / sub-borrower for the WSS sectors will either be the municipality or utility /SKI with a guarantee provided by the municipality. Proposed activities are summarized below and the indicative breakdown of activities by financing source is presented in Table 2.1 (Annex 2).
29. The IBRD loan and EU FRIT grant will co-finance22 the project as a single project, although each financier will finance separate individually identifiable activities as indicatively detailed in Annex 2 (Table A 2.1). An indicative list of activities to be financed from the loan and the grant was provided by ILBANK at appraisal. Activities financed from both sources will be implemented seamlessly in parallel under a single Procurement Plan prepared by ILBANK and approved by the World Bank during appraisal, and a single Project Implementation Plan to be prepared by ILBANK no later than 30 days after loan effectiveness. Both Plans will be reviewed and updated annually as needed. The Procurement Plan will identify the source of funding for each activity with prior approval by the Bank, although the rules for implementation will be exactly the same for both sources of funds.
30. Component 1. Environmental Infrastructure Investments (Euro 254.98 million (US$280.34 million equivalent), of which EU Grant is Euro 132.33 million23 (US$145.49 equivalent) and IBRD loan is Euro 122.65 (US$134.83 equivalent): This component will finance environmental infrastructure investments through the provision of sub- loans and/or grants to selected municipalities for goods, works, non-consulting and consulting services required to carry out construction and rehabilitation works for water supply, sanitation, and solid waste management infrastructure in those municipalities to achieve improvements in access, service quality and continuity of municipal services; as well as smaller scale critical facilities to address immediate municipal service needs of vulnerable SUTP and host communities at the neighborhood or settlement level, to be identified in a participatory manner by the beneficiaries. Individual infrastructure facilities will, where appropriate, consider adaptive designs that would allow for a scaling up or down of capacity in the event of unanticipated changes in the refugee population or climate change-related extreme weather events. An indicative program of proposed sub-projects with investments to be financed through this component was pre-identified in the selected municipalities at appraisal (see Table 1 in Section V, A) of this document). Envisaged investments in water supply, sanitation, and solid waste management are described below.
a) Water Supply Investments (Estimated Cost Euro 145.93 million of which IBRD loan is Euro 104.65 million and EU Grant is Euro 41.28 million). This activity will finance water supply investments, including for the: (i)
21 EUD approval will be required for grant financed sub-projects 22 Please see footnote 15 which is applicable for all further references to the grant financing in this document. 23 An additional contingency amount for investments in the amount of about Euro 984,904 is allowed for in the grant amount, bringing the total grant amount to Euro 134,219,904. A front-end fee for the IBRD loan in the amount of US$372,040 is included in the project cost.
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construction and/or rehabilitation of water treatment plants; (ii) construction or rehabilitation of water transmission and distribution networks; (iii) expansion of water reservoir capacities; (iv) Non-Revenue Water (NRW) reduction activities such as installation of SCADA systems and development of district metering areas (DMAs), leakage control measures; and (v) provision of priority people-facing public hygiene facilities or interventions at the individual settlement/neighborhood level to ensure that all people, including the most vulnerable, have access to safely managed water supply services; and (vi) other demand-driven water supply investments as approved by the Bank. All these activities will increase the supply of (treated) water and, combined with sanitation investments, will decrease the volume of untreated wastewater discharged into water bodies, thereby raising the targeted communities’ resilience to droughts and poor-quality water. The priority interventions at the household or neighborhood level under (v) above will be identified in a participatory manner with the beneficiary communities and the respective municipalities early on during implementation to respond to specific people-facing priorities in terms of spatial or facility targeting, and could include facilities such as provision of additional access points, laundry facilities, etc. Investments under this component are expected to contribute to improved access to safely managed water supply in the targeted areas by augmenting existing capacities, improving quality of services among host and refugee populations, and raising the targeted communities’ resilience to droughts and poor-quality water. Water supply and sanitation investments will be designed to address climate change adaptation and mitigation through measures aimed at increased energy efficiency, such as: installation of energy-efficient pumping systems; reduction of non-revenue water (NRW); and system monitoring and regulation, with automation through SCADA systems. All three of these activities are expected to result in energy efficiency gains. b) Sanitation investments (Estimated Cost Euro 91.07 million of which IBRD loan is Euro 18.00 million and EU Grant Euro 73.07 million). This activity will finance sanitation investments in selected municipalities, including for the: (i) construction of new wastewater treatment plants (WWTPs) or interventions to increase their capacity; (ii) construction of new or rehabilitation or extension of existing sewerage collection networks; or (iii) targeted priority sanitation/or related public hygiene facilities to address immediate needs such as toilets in the most vulnerable settlements among host and refugee communities, to be identified in consultation with the communities, municipalities and SKIs; and (iv) other demand-driven sanitation investments as approved by the Bank. Extension or construction of the wastewater collection network is expected to decrease the amount of uncontrolled discharges to receiving bodies and the construction of wastewater treatment plants (WWTPs) to improve the quality of discharges to receiving bodies. These activities will thus not only reduce the volume of contaminated floodwaters in case of flooding but also reduce the likelihood of wastewater infrastructure becoming overwhelmed or damaged during a flood, thereby increasing the targeted communities’ resilience to floods. Priority sanitation facilities at the neighborhood level will be identified in a participatory manner with the beneficiary communities and the municipalities early during implementation, and appropriate designs will be prepared in an adaptive manner to respond to specific people-facing priorities in terms of spatial or facility targeting, use of appropriate technologies such as semi-permanent structures that respond to land tenure constraints, etc. Investments under this component are expected to contribute to improved access to safely managed sanitation resulting in reduced environmental degradation and improved living conditions and environment in the targeted areas. c) Solid waste Investments (Estimated Cost Euro 17.00 million of which IBRD loan is Euro 0 and EU Grant is Euro 17.00 million). Identified investments under this component will include construction of a new solid waste landfill in one municipality, closing of existing dumpsites, and provision of waste collection and transfer equipment and construction of two transfer stations in targeted municipalities, and other demand driven solid
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waste management investments as approved by the Bank. At appraisal solid waste activities were mainly envisaged in Kahramanmaraş Municipality, however other municipalities may identify limited investments in solid waste management, such as waste containers and collection vehicles as prioritized.
31. Component 2. Technical Assistance for Project Management and Supervision, Capacity Building, Communication and Citizen Engagement (Euro 14.59 million (US$16.03 million equivalent), of which EU Grant is Euro 1.885 million (US$2.07 million equivalent) and IBRD Loan is Euro 12.71 million (US$13.97 million equivalent). This component will finance goods and consultancy services for the following activities:
a) Project Management (Euro 2,605,000; Euro 780,000 from the EU Grant and Euro 1,825,000 from the IBRD loan). This activity will finance: (i) Incremental operating costs (Euro 500,000 from the loan), including goods and non- consulting services required to support ILBANK for day to day project coordination and supervision, and implementation of procurement, financial management, monitoring and evaluation, and safeguards functions and project audits; it will also finance workshops and other events such as steering committee meetings required to facilitate project management; (ii) Consulting services for project management (Euro 780,000 from the grant), including consultant services required to support implementation of procurement and financial management aspects, management of social and environmental safeguards and climate change- related aspects, including dam safety requirements associated with the project, technical and contract management, monitoring and evaluation (M&E), and project reporting and communications, as agreed with the Bank; (iii) Procurement of Video Conference System/s for ILBANK HQs and Regional Directorates (Euro 1,325,000 from the Loan).
b) Consultancy services for design review and supervision of environmental infrastructure (Euro 10,250,000 financed from the IBRD loan). This activity will finance consultancy services for design review and preparation of bidding documents, taking into account climate change considerations, and supervision of construction and rehabilitation works for proposed environmental infrastructure investments under Component 1.
c) Institutional Capacity Building activities targeting the participating municipalities, utilities and ILBANK (Euro 630,000 financed from the IBRD loan). This activity will finance capacity building activities, including inter- alia, training, workshops and other learning events targeted at ILBANK, Municipalities and SKIs. Capacity building activities will be aimed at, inter alia, improving performance efficiency, and increasing capacity within municipalities and SKIs/utilities to further modernize their operations to optimize efficiency and effectiveness in municipal service delivery while embracing principles such as resilience, financial and environmental sustainability, and inclusion. These activities will also seek to contribute to increased water security through more efficient delivery, and thus increased resilience to climate change. This activity will leverage World Bank tools and resources as well as synergies with other FRIT projects managed by the Bank to identify and prioritize capacity building needs in a participatory manner and identify and agree on selected actions to be implemented and monitored during the project’s lifetime. An Institutional Capacity Development Plan will be prepared for the project in consultation with relevant institutions at the start of the project, and an Action Plan, including specific capacity building activities will be developed and updated annually defining planned actions, to be confirmed on a no objection basis with the Bank. Agreed actions by the SKIs and municipalities to improve their performance will be defined in Performance Improvement Action Plans (PIAPs) comprising a set of feasible actions identified in a participatory manner by the relevant participating institutions at the start of the project. Relevant Bank activities and resources to be leveraged may include: a Utility for the Future (UOTF) initiative with support from the Global Water Security Partnership (GWSP) Multi-donor trust fund.
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d) Citizen/Community engagement activities and trainings to facilitate effective two-way engagement among stakeholders, including Turkish citizens and SUTPs, Municipalities and SKI’s to identify the needs and priorities for enhancing service delivery to all people in the beneficiary communities (Euro 370,000 financed from the EU Grant). Detailed activities will be planned and implemented in a participatory manner and will seek to identify and respond within the context of the current project to grievances and concerns relating to planning, implementation, and delivery of municipal services; affordability and other pertinent issues. The Bank will take advantage of the outcome of the citizen engagement activities of ILBANK under the relevant FRIT funded activities of the Bank.
e) Public Communication and Visibility activities (EURO 735,000 fully financed from the EU Grant). This activity will finance Communications and Visibility activities for the project, including preparation of a detailed communication and visibility plan, information and outreach campaigns; brochures, promotional and audio- visual materials, and awareness-raising events. The objectives of project communications and visibility activities are to: (i) facilitate outreach and engagement of refugees and host communities in project activities; and (ii) share results and disseminate project lessons with key audiences for broader impact. Communications and visibility activities are also intended to communicate to project beneficiaries and stakeholders information about the EU’s financial contribution to support refugees and host communities in Turkey.24 Activities will be detailed in a Communications and Visibility Plan that will be included in the POM.A detailed Communication and Visibility Plan will be developed at the start of implementation, in line with EU Communications and Visibility Manual for EU External Actions25, as well as the World Bank’s external communications guidance. Communications activities will also seek to target critical public education messaging to different stakeholder groups, including children and youths, and adults in relevant languages, specifically Turkish, English and Arabic.
32. The project has significant potential to enhance the resilience of environmental infrastructure and services, and of the targeted communities, to climate change-exacerbated risks, and to increase climate change mitigation from improved efficiency of WSS service delivery and SWM. Efficiency gains, including NRW reduction and energy savings (which are both considered climate-smart activities through their potential to reduce emission), as well as the modernization/rehabilitation of WSS infrastructure under Component 1, are expected to result in large mitigation benefits, while the management of waste via a sanitary landfill rather than the current disposal sites that typically lack environmental controls is expected to have strong climate benefits. NRW reduction is expected to support utilities better withstand climate shocks to water supply, including water scarcity and drought, while reducing GHG emissions from pumping and treatment activities. Given the existing and future climate vulnerabilities, including the risk river and urban floods, and water scarcity, all project investments will account for climate aspects in their design. The WSS activities, especially those addressing wastewater, will be designed in a flood-resilient manner to ensure environmentally sound and safe transport and treatment of wastewater. For the SWM activities, a regional solid waste management approach creates a more resilient solid waste management system since transport and waste disposal will be streamlined, following the operations and maintenance manual, and will follow safe, environmentally-sound practices to withstand rain and natural disasters. By transitioning from non-sanitary landfills to sanitary landfills, the waste system is expected to significantly improve how heavy storms and flooding affect the
24 The Delegation of the European Union to Turkey will be consulted on communications and visibility activities during implementation to ensure that the Communications and Visibility Plan is implemented in accordance with the Communications and Visibility Manual for EU External Actions as well as EU FRiT Visibility Guidelines. 25 https://ec.europa.eu/europeaid/work/visibility/_en
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surrounding environment. The leachate collection and treatment systems in the sanitary landfills will be designed to prevent contamination of surrounding areas during periods of heavy rain.
33. GHG Emissions: The total net emissions of the project based on defined investments at appraisal were estimated at -1,139,559 tCO2-eq over the 30-year economic lifetime of the project. The average annual net emissions are - 37,983 tCO2-eq. The total lifetime gross emissions are 671,988 tCO2-eq. The net emissions for the water supply investments in Osmaniye under subcomponent 1a are -990,458 tCO2-eq due to a reduction in tanker use as beneficiaries are switched to a piped potable water supply system. The wastewater collection and treatment investments in Osmaniye under subcomponent 1b are expected to see net emissions of -95,643 tCO2-eq due to a net reduction in methane and nitrous oxide emissions from introducing wastewater treatment. The wastewater system improvements in Kayseri under subcomponent 1b are expected to see net emission reductions of -53,458 tCO2-eq due to improved treatment standards leading to a net reduction in methane missions, greater energy efficiency for treatment, and a partial switch to gravity-based systems for collection. The solid waste investments under subcomponent 1c are estimated to have net emissions of -63,962 tCO2-eq leading to to a reduction in net emissions with a shift from unmanaged to managed landfills.
B. Results Chain
34. The results chain is presented in Figure 1. Theory of Change below. Although the Theory of change diagram indicates the linkage with envisaged impacts, the project impacts will not be assessed under the project.
Figure 1. Theory of Change26
26 As highlighted through the patterned background, the ‘Impact level’ outcomes will not be measured as part of the project.
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C. Rationale for Bank Involvement and Role of Partners
35. The Bank has substantial global experience in supporting programs and managing policy dialogue to improve service delivery in situations of urban forced displacement. The Bank has successfully mobilized new financing to support situations involving conflict-induced forced displacement and crowded-in funding from other donors, recognizing that forced displacement creates specific vulnerabilities for refugees and internally displaced persons (IDPs), who often lose rights, assets, livelihoods, and social capital when they flee their homes. Bank support has been in the form of financial support, Advisory Services and Analytics (ASA) services, and operational support towards implementation of multi-donor funded programs. Globally, the Bank has supported the preparation of needs assessments for refugee host countries, ASA on affected communities, and implementation of activities for provision and expansion of basic services to accommodate the increased pressure on existing systems due to refugees.
36. The Bank’s comparative advantage in involvement in interventions in situations of forced displacement also stems from its strong partnerships with a wide range of actors in this space. The Bank has partnered with various host states, UN agencies, donor countries, regional organizations and the private sector, providing grant or loan resources to support critical operations in several countries. It has also used its convening power to bring together different stakeholders to share lessons across sectors. As the Bank gets more involved in refugee contexts, it is increasingly supporting the application of development approaches to nationally-led responses such as the proposed. Globally, the Bank has implemented projects tackling socio-economic challenges for very vulnerable populations, as well as displaced and refugee populations, including in Turkey, Romania, Ukraine, Kazakhstan, Bosnia and Herzegovina, Russia, Lebanon, Jordan, Iraq, Afghanistan and Palestine. The Bank is also working in the socio-economic space in countries affected by conflict such as Uganda, Angola, Sierra Leone, Liberia, Congo, Chad, Rwanda, Burundi, Myanmar, Pakistan, Yemen, and West Bank and Gaza. The World Banks’ concessional funding27 portfolio (of US$7 billion in 2017) targeted to help conflict affected countries with large displaced and refugee populations to tackle the integration of refugees and displaced populations while also benefiting host communities.
37. In Turkey, the Bank is currently managing a diverse US$4 billion IBRD loan portfolio of investment and ASA work, with strong synergies to the proposed project, and is preparing five other new operations in various sectors including employment, agriculture and social cohesion to be financed under the EU FRIT 2 28 . The Bank intends to leverage geographical and thematical synergies between these projects to develop an integrative and innovative approach, especially in municipalities which will have interventions from multiple Bank administered FRIT projects. Some of the relevant activities include: (a) Projects in the municipal sector with a focus on urban sustainability and resilience such as the ongoing Sustainable Cities Series of Projects 1, 2, and the Additional Financing (SCP 1, SCP 2 and SCP1-AF); (b) Analytical Work such as the Turkey Urbanization Review (April 2015), the City Creditworthiness Academy (April 2016), and Sustainable Urban Water Supply and Sanitation (June 2016); (c) the Education Infrastructure for Resilience Project (Euro 150 million) financed under FRIT I, which is working with the construction and real estate department of MoNE to construct and equip schools in provinces with a large presence of Syrian refugees; (d) technical assistance to DG Migration Management, Ministry of Interior (DGMM), on the design and implementation of the harmonization strategy for migrants; preparation of a project concept to establish harmonization centers that can serve as one-stop service centers for Syrian refugees and migrants to access legal
27 International Development Association (IDA) 28 The other four Bank projects that have been approved by the EUD for financing under FRIT II: 1. Financing to enterprises conditional on employment creation for Refugees and Turkish Citizens (P171766); 2. Employment Support and Activation of Work-Able Refugees and Turkish Citizens; 3. Agricultural Employment Support for Refugees and Turkish Citizens through Enhanced Market Linkages (P171543); 4. Promoting Economic Opportunities and Social Cohesion through Social Enterprises for Refugees and Host Communities (P171456)
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services and get referrals to other services; and work with DGMM and Turkish Red Crescent to provide inclusion support services targeting the refugees residing in temporary accommodation centers; (e) Bank collaboration with MoFLSS and İŞKUR implementing an EU financed operation (under FRIT I) aimed to improve employment outcomes for Syrian refugees and Turkish Citizens in select localities affected by the influx of Syrian refugees; (f) the Bank’s Social Development and Labor and Skills teams piloting social entrepreneurship as a model to help women who are locality bound but want to be economically active; (g) the Bank’s Finance and Competitiveness team implementing a lending project that facilitates access to credit to enterprises in localities that experienced a large influx of Syrian refugees, to catalyze job creation; and (h) the Bank’s Labor and Skills team working with MoFLSS and İŞKUR on demand-side analytics, to identify critical occupations and skills in demand in the 10 provinces with the largest influx of Syrian refugees.
38. The Bank has established good collaboration with development partners working in Turkey, including the EU, which is co-financing the current operation, the French Development Agency (AFD), which is preparing to implement similar projects in different affected municipalities, and several international and locally based NGOs, and will work in close collaboration with these partners throughout project implementation. The EUD has allocated a total of Euro 6 billion in two tranches over a period of six years (2016-2023) to Turkey to support the country in managing the influx of SUTPs, with about Euro 380 million allocated to improvement of municipal infrastructure services, to be administered by various development partners including the Bank.
D. Lessons Learned and Reflected in the Project Design
39. The project will incorporate important lessons captured from the implementation of World Bank-financed projects across the globe and in Turkey. Lessons learned that are reflected in the project design are described in the following paragraphs.
• Having a strong pre-identified investment pipeline ensures project readiness that is critical for successful implementation. The project included 15 sub-projects at appraisal stage, for which the majority of the feasibility studies and technical designs for entire municipal investments were available.
• An integrated approach that targets both host communities and refugees and combines place-based and people-based methods is critical when designing an emergency response, which in this case spills over into the development stage given increasing integration of refugees with host communities. Given the integration of most of the refugees among host communities and the shift in locating refugees from dedicated camps to regular urban settlements, the project has adopted a development-oriented ‘place-based’ response for improving services and infrastructure in the urban areas that are most affected by the forced displacement crisis. Thus, it will specifically identify and prioritize in consultation with municipalities the most affected neighborhoods or settlements, combined with ‘people-facing’ interventions in environmental infrastructure facilities and services that will be identified by host and refugee populations to address the most pressing priorities.
• Defining the scope of projects clearly while allowing for some flexibility in design by involving stakeholders in decisions concerning their needs has facilitated achievement of better results in implementing local solutions in similar situations. While the project has a pre-defined scope of activities for the larger environmental infrastructure based on the municipal investment priorities of participating municipalities, it will include a consultative decision-making approach to identify the specific needs and priorities of host and refugee communities at the neighborhood level, as well as for capacity building activities.
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• Both quick wins and mid-/long-term improvements are necessary to restore trust and the social contract. Based on experience from similar contexts in countries such as Lebanon where there was mounting pressure and perceived competition over resources and services, quick visible improvements in municipal services were critical for building trust in local authorities. On the other hand, mid-size, developmental solutions, though taking longer time to prepare, provided larger, more lasting impacts. The project will seek to adopt this two-pronged approach to improving services combining the larger infrastructure investments with the more immediate people-facing activities identified with municipalities and communities in a participatory manner.
• Social interventions engaging both host communities and refugees are as important as physical infrastructure interventions for ensuring the socio-economic recovery of communities affected by refugees. Some social interventions focusing on behavior change and public education will therefore be included in the project design, along with those targeted at improving service delivery to increase sustainability and reduce social tensions. The project is also exploiting synergies with other FRIT projects that more directly address some of the key drivers of social issues, such as skills training and learning programs that would help in mitigating such tensions.
IV. IMPLEMENTATION ARRANGEMENTS
A. Institutional and Implementation Arrangements
Project Implementation Arrangements
40. ILBANK. ILBANK is the Borrower for the IBRD loan and intermediary recipient of the grant, and the project implementing agency, serving as a Financial Intermediary to municipalities and SKIs. ILBANK is a state-owned development and investment bank based in Ankara, relevant to the Ministry of Environment and Urbanization. The Government of Turkey represented by the Ministry of Treasury and Finance is the guarantor of the loan. The project will be implemented by an existing Project Management Unit established under ILBANK’s International Relations Department, as is the case under the ongoing SCP series of projects at the central level, and by Project Implementing Units (PIUs) to be set up within the participating municipalities and/or SKIs at the local level. ILBANK has a long experience with managing implementation of municipal infrastructure investments as a financial intermediary and has demonstrated its capacity for managing World Bank loans through the Municipal Services Project (2004-2016) and the ongoing Sustainable Cities Series of Projects. ILBANK establishes the creditworthiness of all local governments in Turkey, provides loans (or grants for small municipalities and local governments) and guarantees, channels funding from International Finance Institutions (IFI), and carries out all required due diligence. ILBANK’s performance on past and ongoing operations has consistently been rated in the ‘satisfactory’ range by the Bank in its Implementation Status reports (ISRs) and its Implementation Completion Reports (ICRs).
41. ILBANK PMU shall be responsible for day-to-day management and implementation of the Project, in accordance with the provisions of the POM, including the responsibility for financial management, procurement, disbursement, monitoring of environmental and social safeguards, reporting, monitoring and evaluation of the Project activities. The existing PMU has qualified staff responsible for management of core project management functions, including procurement, financial management, safeguards in line with ESF requirements29, and M&E. At least one additional
29 Responsibilities for management of safeguards are further outlined in relevant ESF documents, and will also include the municipal level
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designated individual consultant/staff will be hired by ILBANK to support specific core functions, including procurement and financial management, as well as safeguards given the large portfolio. The PMU will also be supported by several specialized departments in ILBANK including the Project department, Investment Appraisal department, Infrastructure Implementation department, as well as the four regional directorates covering the proposed municipalities. The PMU is led by a department head and unit managers, and it has staff capacity in procurement, financial management, safeguards, and technical sectors such as water supply, wastewater, and transport. ILBANK PMU staff have been beneficiaries of intensive training sessions on World Bank procurement, safeguard implementation and other topics. The experience gained during implementation, together with the efforts of the GoT to reform ILBANK have made it a more attractive institution for other International Financing Institutions (IFIs) and laid the groundwork for harmonizing development financing in the sector.
42. Municipality Project Implementation Units (PIUs). At the local level, the project will be implemented by PIUs at the municipal/utility level to manage subproject implementation. A total of six PIUs will be established for the project at the local level, including PIUs in the Water and Wastewater utilities/SKIs in all five selected municipalities, to be responsible for implementation of the WSS sub-projects at the local level and one PIU in Kahramanmaras Municipality to be responsible for implementation of the solid waste sub-project. The PIUs will be primarily staffed by designated municipal/utility employees with the skills and qualifications to carry out fiduciary functions, as well as technical/contract management supervision with support from the supervision consultants. The local PIUs will have designated staff responsible for the core functions, including procurement, financial management, environmental and social safeguards, with minimum requisite qualifications as will be defined in the POM. In general, municipalities/utilities have staff on hand who can manage all aspects of sub-project implementation, and these may be assigned to the respective PIUs. However, where specific skills are required if not locally available, the PIUs could be supplemented by individual consultants as deemed necessary. The PIU staff will benefit from capacity building activities to enhance relevant skills as deemed necessary.
43. The PIUs, which will be responsible for effective management of the subprojects as described in the various sub- project financing agreements, will be established within no later than 30 (thirty) calendar days after the respective municipality or utility has signed its first Sub-financing Agreements with ILBANK. ILBANK PMU will prepare and evaluate the tender documents for the investment and TA components, with representation from the respective municipalities on the evaluation committees. However, the municipalities/utilities will be the contracting authorities for relevant sub-projects. While most of the Metropolitan and many Provincial municipalities in Turkey have experienced and dedicated departments to run capital projects financed by IFIs, institutional capacities for sustaining outcomes through sound operations and maintenance will require further strengthening. The project therefore includes institutional strengthening activities to build their capacity during implementation under Component 2.
44. Feasibility studies, designs, and construction supervision. The feasibility reports of the proposed investments will be reviewed and approved by ILBANK and the Strategy and Budgeting Presidency (SBP). Design review and construction supervision will be performed by independent consultancy firms financed through the project. ILBANK’s regional offices will monitor the sub-project implementation progress monthly and will prepare monitoring reports. Consequently, Regional Directorates will support the PMU by providing relevant information on time and coordinating with the municipalities/ utilities.
45. Project Operations Manual (POM). ILBANK will develop by project effectiveness a detailed POM for purposes of project implementation setting out: (i) policies and procedures relating to implementation of project components
PIUs and contractors.
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and eligibility of sub-projects; (ii) Financial management and procurement arrangements and procedures; and (ii) safeguards obligations and procedures.
B. Results Monitoring and Evaluation Arrangements
46. ILBANK PMU will be responsible for Monitoring and Evaluation (M&E) under the project at the central level, and it will coordinate all M&E activities with the PIUs. ILBANK has experience in M&E through the previous and ongoing projects. The ILBANK PMU will collect data on results indicators from the participating municipalities/utilities. Project Progress reports will be prepared and submitted quarterly by ILBANK. M&E activities, including monitoring of implementation progress and results, will be reviewed by the World Bank as part project supervision missions to be carried out at least twice a year. The incremental costs for the project M&E arrangements will be covered under Component 2 Project Management.
47. A mid-term review of the project will be carried out around two years after commencement of the project to assess overall implementation progress and identify and resolve any key issues affecting implementation. An evaluation will also be carried out at the end of the project as an input to the Implementation Completion and Results Report to evaluate final results, assess overall performance, and capture key lessons.
C. Sustainability
48. Sustainability of the municipal investments and service delivery will depend on the utilities ability to mobilize the necessary technical and financial resources to manage the new assets effectively. The financial sustainability of utilities and/or municipalities in Turkey is underpinned by their ability to: (a) report positive operating balances (recurring operating revenues – recurring operating expenditures > 0); and (b) fund at least part of their capital expenditure from their own funds (positive operating balance). The four SKIs that will receive loans under the project all reported positive operating margins in FY2018: 15.6 percent for Adana SKI, 32.2 percent for Kahramanmaraş SKI, 33.7 percent for Kayseri SKI, and 20 percent for Osmaniye Municipality. The dialogue concerning SKI or municipality performance and the Performance Improvement Action Plans to be supported through the TA Component of the project will seek to ensure that issues of sustainability, including financial aspects are addressed through specific actions identified by the respective institutions.
49. Institutionally, sustainability will also be enhanced through implementation of the proposed technical assistance measures aimed at targeted performance improvement for municipalities/utilities under the project. The TA component will seek, inter-alia, to: (i) promote more effective and efficient utility management in line with good practices; (ii) provide support to the ILBANK Project Management Unit (PMU) and municipalities/utilities in embedding local-level actions that link with EU policy directives on climate change, energy efficiency, water, solid waste management, and in building awareness on international best practices to promote and implement sustainable utility operations; and (iii) support provision of training and capacity building to municipalities; with an aim to improve operational efficiency, financial sustainability and customer satisfaction. The Bank will also draw upon additional resources in line with initiatives such as the proposed Utilities for the Future Technical Assistance Program financed by GWSP to support utilities in improving their overall performance. Under the proposed project, the participating utilities will attend trainings on utility performance improvement and financial management to improve their knowledge capacity to improve recovery of Operational and Maintenance (O&M) and investment costs.
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50. Technical sustainability of the physical assets will also depend on quality assurance provided through effective management of the design review taking into account climate change considerations and construction supervision process. Since all the proposed investments and technical assistance measures have been developed in line with the relevant national policies and international best practice, expected results of the proposed project will contribute to sustainability of the actions at policy level.
V. PROJECT APPRAISAL SUMMARY
A. Technical, Economic and Financial Analysis
51. Technical Analysis. At appraisal stage it was expected that the project will finance a total of fifteen environmental infrastructure sub-projects in the five municipalities, spanning three environmental infrastructure sub-sectors, water supply, wastewater management and solid waste management, in addition to the Technical Assistance activities. A summary of the status of identified sub-project interventions by municipality at appraisal is provided in Table 1 below. While feasibility studies and technical designs were prepared for nine of the municipal sub-projects identified at appraisal, design studies are ongoing for the additional six subprojects. The scope of investments and respective project footprints may change as part of a design review process to be carried out for all sub-projects prior to bidding for the construction works. The design review will, among other things, ensure that individual infrastructure facilities where appropriate consider adaptive designs that would allow for a scale up or scale down of capacity in the event of changes in the refugee population. The design review will be carried out by independent consultancy firms to be commissioned by ILBANK in each municipality on behalf of the municipalities. The same consultants will also be responsible for preparation of the bidding documents and construction supervision to ensure works quality control. Most of the available engineering designs have been reviewed and conform to good practice, first by ILBANK and by the World Bank technical team and comments have been provided where gaps have been identified. Terms of reference for the design review and supervision consultants have been prepared by ILBANK and the selection process for the consultants will be initiated as soon as the terms of reference are cleared by the World Bank. Although the consultants will be procured by ILBANK, the respective municipalities shall be invited into the evaluation process and will sign the contracts once the sub-financing agreements are signed between ILBANK and the municipalities/utilities. A summary of the status of each sub-contract is given below. ILBANK may also request the Bank’s no objection to pre-finance the consultants and be reimbursed through retroactive financing with the World Bank if deemed necessary.
Table 1. Indicative List of Environmental Infrastructure Sub-Projects identified at appraisal Sub-Project Status of technical Target Est. Financing No. Sub-Project Description designs (at Municipality Need (m EUR) appraisal) Adana A.1 Kozan İmamoğlu Yedigöze Drinking Water 21.85 Available with Transmission Line sufficient quality A.2 Yedigöze Water Treatment Plant 13.15 Ongoing A.3 Kozan Pınargözü Drinking Water 28.07 Available with Transmission Line and Network sufficient quality Kahramanmaraş B.1 Kahramanmaraş Northern Districts 17.00 Available with Integrated Solid Waste Project sufficient quality B.2 Kahramanmaraş (Centrum) Drinking Water, 17.00 Available with Sewerage and Stormwater Project West Part sufficient quality
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Sub-Project Status of technical Target Est. Financing No. Sub-Project Description designs (at Municipality Need (m EUR) appraisal) B.3 Ceyhan Basin Wastewater Treatment Plants 8.40 Available for 3 WWTPs; Ongoing for 1 WWTP B.4 Elbistan Drinking Water Network Project 8.00 Ongoing B.5 Kahramanmaraş (Centrum) Drinking Water, 18.80 Available Sewerage and Stormwater Project East Part with sufficient quality B.6 Elbistan Drinking Water Transmission Line 25.00 Ongoing review Kayseri C.1 Kayseri Wastewater Treatment Plant 25.00 Available Konya D.1 Akşehir Water Supply Project 4.71 Available but needs improvement D.2 Ilgin Wastewater Treatment Plant 3.90 Available and under revision D.3 Cumra Wastewater Treatment Plant 4.56 Available and under revision Osmaniye E.1 Osmaniye (Centrum) Drinking Water Project 27.65 Available with sufficient quality E.2 Osmaniye (Centrum) Sewerage Project 29.91 Ongoing review
Economic and Financial Analysis
52. The financial and economic analyses focus on sub-projects in the municipalities that will benefit from the loan proceeds, namely: Adana: for drinking water transmission lines and network; Kahramanmaras solid waste system, wastewater treatment plants (WWTP) and sewerage network projects; Kayseri WWTP project; and Osmaniye drinking water and sewerage network projects. Konya Aksehir water supply project and wastewater treatment plants have been left out as they are to be fully grant financed. The integrated solid waste management (ISWM) project in Kahramanmaras is justified based on financial and economic returns.
53. Financial Internal Rates of Return (FIRR) were estimated for the productive subprojects resulting generally in negative Financial Net Present Values (NPV) thus reflecting non-viability on solely commercial basis. Nonetheless, Component 2, TA component includes capacity building activities to utilities to improve operational efficiency in order to operate and maintain investments and deliver services in a sustainable manner. Such support will create conditions to move towards commercial viability. The Bank will also support the utilities in identifying and implementing performance improvements through other initiatives such as the Utilities for the Future Trust Program financed through a GWSP TF and implemented by the Water Global Practice and the ECA Water team. These types of support will foster better management practices for enhanced performance in the future of these utilities.
54. The economic Net Present Values (NPV) of the entire project’s lifetime is estimated at EUR 19.4 million on the basis of the present values of costs and benefits produced by the project. Economic IRR (E-IRR) was 11 percent with benefits to cost ratio of 1.09 for A) Adana Drinking Water and Transmission Sub-project, 10.4 percent and 1.02 for B) Kahramanmaras Wastewater Treatment Plants and 15.5 percent and 1.56 for Kahramanmaras solid waste, 12.2 percent and 1.64 for C) Kayseri WWTP project 23.82 percent and 9.17 for E) Osmaniye drinking water and sewerage network projects. Although estimated E-IRRs are slightly above the discount rate of 10 percent, they are comfortably
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above the recommended discount rate of 6 percent per WB guideline30.
55. Sensitivity analyses have been carried out measuring change in the E-NPV due to changes in critical parameters including investment costs, personnel costs and power costs. Avoided GHG emissions improving economic benefits to the project due to more efficient wastewater collection, lower energy use for wastewater treatment, shift in solid waste management to a sanitary landfill from current disposal sites and energy efficiency gains from NRW reductions, were also considered as part of economic assessment. The benefits from estimated net emissions of the project based on defined investments at appraisal were estimated at EUR 57.5 million over the 30-year economic lifetime of the project31.
56. As the investments will be implemented under affiliated water utilities and/or municipalities, a baseline assessment of their financial position has been carried, to ensure financial sustainability based on 2018 and past three years’ trend data. Financial sustainability of utilities and/or municipalities are underpinned by their ability to: (a) report positive operating balances (recurring operating revenues – recurring operating expenditures > 0); and (b) fund at least part of their capital expenditure from their own funds (positive operating balance as explained above). Current margin reported in FY2018 by Adana SKI was 15.6 percent, 32.2 percent for Kahramanmaras SKI and 33.7 percent for Kayseri SKI. Osmaniye Municipality closed FY2018 with an operating margin of 20 percent. With increased capital investments, utilities are projected to report balanced overall budget results, supported with debt financing and grant contribution as foreseen under the sub-projects. Results of financial baseline assessments are provided in the Annex 3, Financial Estimate section. Detailed financial management and creditworthiness analyses for sub-borrower water utilities and municipalities incorporating projections on fiscal performance, expenditure coverage and indebtedness indicated that sub-borrowers will have capacity to meet their financial commitments while remaining exposed to adverse economic conditions.
B. Fiduciary
Financial Management
57. The financial management arrangements for the project are satisfactory. The PMU established under the International Relations Department of ILBANK will be responsible for the financial management arrangements for the Project. The PMU has satisfactory arrangements for the Sustainable Cities Project I, II and its AF and the same arrangements will be adopted for Municipal Services Improvement Project in Refugee Affected Areas.
58. ILBANK will on-lend proceeds of the IBRD loan and on-grant the grant proceeds to the participating municipalities/utilities and will provide technical support to these municipalities/utilities in overseeing implementation of the investments. The procurements of the project will be conducted centrally by ILBANK with the participation of the Municipalities/utilities in the bid evaluation committees and concluded contracts will be signed by the relevant Municipalities/utilities. Payments to the suppliers will be registered directly by ILBANK upon submission of acceptable approval documents. The PMU in ILBANK will be responsible for the management of the Designated Accounts and project accounting and reporting. The project accounts will be subject to independent audit on an annual basis by the Treasury Controllers of the Ministry of Treasury and Finance of independent auditors. The
30 Additionally, there are other components that would generate tangible and intangible benefits not measured because of i) inability due to methodological reasons and ii) limited data to estimate benefits at the time of drafting the analysis into the PAD. 31 Using World Bank GHG Accounting Tool for Water sector lending projects average shadow price of carbon converted to Euro using EUR/US$ conversion rate of 0,90 for calculation in monetary terms.
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project audit report will be made publicly available according to the World Bank’s Access to Information Policy.
Procurement
59. ILBANK as the financial intermediary, as well as the beneficiary municipalities are public entities. Thus, the World Bank Procurement Regulations for IPF Borrowers – July 2016 revised in November 2017 and August 2018 (“Procurement Regulations”) will apply to the proposed Project. The World Bank's Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants, dated October 15, 2006 and revised in January 2011 and as of July 1, 2016 (“Anti-Corruption Guidelines”) will also apply to the proposed project. A General Procurement Notice will be published on the World Bank’s external website and United Nations Development Business online.
60. A draft Project Procurement Strategy for Development (PPSD) has been prepared by ILBANK as required by the Procurement Regulations to determine the optimum procurement approach to deliver the right procurement result under the proposed project. The PPSD was agreed between ILBANK and the World Bank. The PPSD proposed that all procurements will be conducted by the PMU with the support of ILBANK Investment Coordination Department as needed. The relevant municipalities/utilities will be invited to participate in the bid evaluation committees, sign the contracts and they will be responsible from the contract implementation through their PIUs supported with experts in the procurement and contract management. Considering four years project implementation period, the PPSD proposed to initiate procurements as early as possible for the timely implementation of the contracts.
61. The selection of the “Design Review and Supervision Consultant(s)” has been identified as the strategically important procurement although their contract values are relatively low. It is envisaged that the consultants will support the PMU for the preparation of the bidding documents for the infrastructure investments and consultants’ timely input is very critical for the initiation of the relevant procurements planned in the procurement plan. Following the Bank’s guidance for procurements in situations of urgent need of assistance, the selection of the consultants will be accelerated by adapting fit-for-purpose principle, and accordingly higher thresholds will be applied for the “consultant’s qualification-based selection” method to deliver the project development objectives within the duration of the project. All other infrastructure contracts are “strategic critical” for the municipalities. Hence, the selected consultant will also provide services to relevant municipalities/utilities for the quality assurance of the works and goods and timely completion of the contracts within their original contract prices. More details on the findings of the procurement assessment, the proposed procurement supervision arrangements, risks and relevant mitigation measures to address them are provided in Annex 4.
.C . Legal Operational Policies . Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No .
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D. Environmental and Social
Environment
62. The project is categorized as “Substantial Risk” within the World Bank’s Environmental and Social Framework (ESF), given that at appraisal stage it consisted of 15 identified infrastructure investments (subprojects) in 5 municipalities and target provinces which are host to among the largest numbers of refugees in urban settlements. The project is expected to have positive impacts on improving environmental infrastructure and hence, contributing to resilience in communities impacted by refugee influx. It is not expected that sub-projects will have significant adverse effects to human health and/or the environment. The project will not result in significant adverse cumulative and does not include activities that might involve transboundary impacts. Moreover, the areas likely to be affected by the project are not of high value and sensitivity.
63. Environmental and Social Standards (ESS) 1-10, with the exception of ESS 7 (the standard does not apply, as there are no indigenous or SSAHUTLC in Turkey) apply to the Project. The project also does not necessitate the application of OP 7.50: Projects on International Waterways32 and OP 7.60: Projects in Disputed Areas. However, the urgent need for assistance to support the Government of Turkey's efforts to mitigate rising pressures on service delivery from the continual influx of people across the border and from camps to cities has required the Bank policy OP 10, para 12 – Projects prepared in a Situation of Urgent Need of Assistance or Capacity Constraints to be applied.
64. The water supply subprojects will include the construction of water treatment plants, construction of new and extension of existing water distribution networks and transmission line, expansion of water reservoir capacities, and non-revenue water reduction activities such as installation of SCADA systems and development of water metering areas. Wastewater investments will include construction of new wastewater treatment plants or expanding their capacity, construction of new and extension of existing sewerage collection networks. Solid waste facilities will include new waste collection and transfer equipment, construction of two transfer stations and a landfill (including composting and mechanical separation facilities) in Afsin District of Kahramanmaraş, and rehabilitation or closure of existing dumpsites. These subprojects have potential environmental risks both during construction and operation phases.
65. In line with E&S standards that apply to the project, potential environmental and social risks associated with the construction and operation of the wastewater treatment plants and solid waste landfills are: (i) generation of noise, dust, wastewater, excess material and other waste in the construction phase; (ii) emission of dust, bio-aerosols, odors, and vehicle exhaust during waste collection and transportation; (iii) contaminated runoff, leachate generation and landfill gas emissions; groundwater contamination; (iv) noise and vibration from the operation of waste processing equipment; (v) fire and explosion risks due to landfill gas; (vi) community health and safety impacts such as visual, dust and odor problems, as well as scavenging related impacts and physical, chemical and biological hazards; (vii) occupational health and safety impacts such as accidents and injuries, chemical exposure, noise and vibration exposure and exposure to pathogens and vectors; (viii) closure and post-closure management of the landfills; (ix) discharge of treated wastewater to receiving bodies; (x) sludge and solids generation from wastewater treatment plants; (xi) emissions of hydrogen sulfide, methane, ozone, gaseous or volatile chemicals associated with WWTPs; and (xii) ecological impacts on the nearby receptors. Although ILBANK - the project implementing entity - has extensive experience in applying the Bank’s safeguard policies under MSP 1 and 2 and SCP 1 and 2, it lacks experience in managing complex and substantial-risk projects in Fragility-Conflict-Violence (FCV) contexts.
32 Based on sub-project selection criteria, projects triggering OP 7.50 are not eligible for participation under this project.
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66. The World Bank and ILBANK teams have agreed on the environmental and social risk categorization and assessment requirements of each subproject as presented in Table 2 below.
67. ILBANK has prepared an Environmental and Social Management Framework (ESMF) for managing environmental and social impacts and risks of subprojects, and an Environmental and Social Commitment Plan (ESCP). The ESMF was consulted with stakeholders on November 26, 2019 and was disclosed on December 4, 2019. Subproject and site- specific environmental impacts will be discussed in detail in the subproject specific environmental assessment documents (such as Environmental and Social Impact Assessment (ESIA) and Environmental and Social Management Plan (ESMP)) to be prepared by ILBANK, on behalf of related municipalities, during the project implementation phase. ILBANK already completed the selection of Environmental and Social Consultancy Company for the preparation of subproject specific environmental and social assessment documents and initiated the preparation of documents accordingly. One of the key actors in the implementation of the ESMF will be ILBANK Project Management Unit (PMU). ILBANK will recruit additional environmental and social specialists (at least one environmental and one social) to increase PMU capacity during project preparation and implementation.
Table 2. E&S Risk Categorization of Proposed Subprojects E&S Risk E&S Assessment Requirements at No Subproject Categorization appraisal 1-1 Kozan Imamoglu Yedigoze Drinking Water Substantial ESIA; SEP; Dam safety assessment; Ex- Transmission Line Post Social Audit for subproject 1-2 1-2 Yedigoze Water Treatment Plant 1-3 Kozan Pinargozu Drinking Water Transmission Line and Network 2-1 Kahramanmaras Northern Districts Integrated Solid Substantial ESIA; SEP; LARAP Waste Project 2-2 Kahramanmaraş (Centrum) Drinking Water, Moderate ESMP; SEP (covering subprojects 2-2, Sewerage and Stormwater Project West Part 2-3, 2-4, 2-5, and 2-6)*; Ex Post Social 2-3 Kahramanmaraş (Centrum) Drinking Water, Audit for subproject 2-2 Sewerage and Stormwater Project East Part 2-4 Ceyhan Basin Wastewater Treatment Plants Substantial ESIA; SEP (covering subprojects 2-2, - Ekinozu WWTP and Collectors 2-3, 2-4, 2-5, and 2-6)*; LARAP - Caglayancerit WWTP - Andirin WWTP and Collectors - Goksun WWTP and Collectors 2-5 Elbistan Drinking Water Network Project Moderate ESMP; SEP (covering subprojects 2-2, 2-6 Elbistan Drinking Water Transmission Line 2-3, 2-4, 2-5, and 2-6)*; LARAP 3-1 Extension of Kayseri Wastewater Treatment Plant Substantial ESIA; SEP
4-1 Aksehir Water Supply Project Moderate ESMP; SEP 4-2 Ilgin Wastewater Treatment Plant Assessment pending at appraisal 4-3 Cumra Wastewater Treatment Plant Assessment pending at appraisal 5-1 Osmaniye (Centrum) Drinking Water Project Moderate ESMP; SEP 5-2 Osmaniye (Centrum) Sewerage Project * For subprojects in Kahramanmaras, 2 SEPs will be prepared in total; one for No 2-1, and one for No 2-2, 2-3, 2-4, 2-5, and 2-6.
68. Safety of Dams. One sub-project in Adana includes the 34 km long Kozan İmamoğlu Yedigöze Drinking Water
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Transmission Line, which will be fed by the Yedigöze reservoir on the Yedigoze dam/hydropower plant. The Yedigöze hydropower plant was built on the Seyhan River in Adana province between 2006 and 2010. The main purposes of the plant are hydropower and irrigation. It is owned and operated by SANKO, a private Turkish company, under a Build-Operate-Transfer project licensed by the Ministry of Energy and Natural Resources (MENR). The Bank Dam Safety Expert visited Adana to conduct a due diligence on dam safety aspects for Yedigöze dam as part of project preparation. Yedigoze dam and its appurtenant works were built 10 years ago, and they are well operated and maintained by SANKO, which is responsible for the safety of its facilities. Devlet Su Isleri (DSI) the State agency responsible for water resources management and irrigation ensures the state supervision in accordance with the applicable legislation, and was directly involved in all project stages, from the feasibility study to the reservoir impoundment, and it ensures that the operator implements all required safety measures. In this context, DSI examines all reports related to dam operation and safety and carries out regular dam inspections (twice a year).
69. DSI confirmed the sound state and behavior of the dam and its appurtenant structures. Moreover, the board of experts under the Ministry of Agriculture and Forest carried out an inspection in December 2015 and issued a positive opinion regarding the safety conditions of the Yedigöze dam. This report, which confirms the general good conditions and performance of the dam, can be accepted by the WB as previous dam safety assessment, this is in accordance with OP4.37 requirements. SANKO personnel in charge of the surveillance of the dam are well organized and perform daily routine inspections and maintenance checks. The dam and its appurtenant structures are equipped with 272 monitoring instruments divided into 15 different categories; measurements are automatic and/or manual. Analysis and interpretation of the measurements are made by both SANKO and DSI, and dam surveillance reports are issued quarterly. The instrumentation Plan, the Operation & Maintenance Plan and the Emergency Preparedness Plan are regularly updated by SANKO and submitted to DSI for approval. Overall, the Bank expert’s general impression was positive, with both the operator and the state supervisory authority aware of the importance of the safety and the maintenance of its facilities. The project will finance technical assistance under Component 2 to have independent dam safety specialists, including competent dam safety specialists of DSI, acceptable to the Bank carry out a safety inspection of the above-mentioned dams, based on terms of reference acceptable to the Bank, at intervals of not less than once every five years according to Good International Industry Practice, during the implementation and after completion of the Project. The first of said safety inspections shall be carried out not later than December 2020.
Social
70. Social risk is rated as Substantial. Social risks and impacts intrinsic to the project are comparable to other municipal investments carried out under the Bank financed Sustainable Cities Projects 1 and 2 with ILBANK, which are assessed as Moderate. Contextual risks are rated Substantial because the sub-projects to be financed under the project are designed in such manner to enable broad population to benefit, regardless of their nationality or any vulnerability. Such approach should allow the management of contextual risks, which may otherwise be considered High. Main social impacts are expected to be manageable and limited to stakeholder engagement with various host communities and refugees, economic displacement with limited livelihood impacts, limited labor influx impacts expected during construction phase, and community health and safety impacts caused by investments in wastewater treatment and solid waste facilities. The ESMF and site – specific ESMPs will address such impacts and propose mitigation measures. Major civil works are expected in association with the construction of water and solid waste treatment plans, while other investments will mainly include the construction of linear structures. SEA (sexual exploitation and abuse) risks are assessed as Low. The project will carry out a set of training activities on SEA prevention, which will target ILBANK and participating municipalities/utilities staff and civil works construction contractors. Project workers will be subject to the Code of Conduct, which will be included in the contracts for the civil works and project labor management
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procedure. ILBANK prepared a project labor management procedure (LMP), which applies to project workers, including ILBANK staff and workers engaged in sub-projects including civil works contractors. Civil works contractors shall adopt the project LMP, which includes proposed Code of Conduct.
71. ILBANK prepared a Resettlement Framework (RF) as required by ESS5, which was disclosed on November 26, 2019 and consulted in conjunction with the ESMF and SEF on December 2, 2019. The majority of the sub-projects requiring land acquisition have already completed acquisition works. However, designs are currently still under review and revision, and may change the project footprint and thus the scope of land acquisition. Ex-post social audits of previous land acquisitions will identify any gaps with ESS 5 which need to be addressed and will be completed before the start of civil works of relevant sub projects. Resettlement Plans, and any other site-specific E&S documents will be finalized and approved by the Bank and disclosed prior to the beginning of tendering of works of each sub-project.
72. Stakeholder Engagement and Citizen Engagement: In line with ESS 10, ILBANK prepared a Stakeholder Engagement Framework, outlining general principles and a collaborative strategy to identify stakeholders and plan for an engagement process in accordance with ESS10. In addition, the SEPs for each municipality will be prepared. The borrowing municipalities and utilities will implement SEPs including timely information disclosure in accessible manner, engaging stakeholders across host and refugee communities in the project areas, with an overall aim to prevent any social tensions and perceptions of unequal access to project benefits. Before project implementation, Municipalities will develop information booklet/leaflets in Turkish and Arabic describing subproject intended outcomes including the need of land expropriation, which will be shared among the project affected parties (PAPs) during resettlement plan preparation work. The SEF/SEP includes a two-level project level Grievance Redress Mechanism (GRM): the first at the municipal level and the second at ILBANK level. Municipalities will ensure that the GRMs are functional and accessible to the refugee and host communities in the languages they speak for any issues that they would like to address. Municipalities will report on the percentage of grievances resolved within a stipulated time frame and the project will utilize Citizen Report Cards at the beginning and end-term to assess if the municipal investments improved the cities’ current infrastructure and addressed the prior needs of both host and refugee communities. Additional citizen engagement activities are described under Component 2 c (ii).
73. Additionally, citizen engagement activities to facilitate effective two-way engagement among stakeholders, including Turkish citizens and refugees, municipalities, and SKIs, will seek to identify the needs and priorities of beneficiary groups to improve access to effective municipal services. These activities will be planned and implemented by ILBANK in a participatory manner with the support of non-governmental organizations (NGO)’s selected by ILBANK. They will be identified through the project and be described in the Project Operations Manual. The activities will seek to address concerns on issues relating to planning, implementation, and delivery of municipal services, particularly environmental infrastructure services covered under the project, as well as any related issues affecting social cohesion among host and refugee communities. Citizen engagement activities will where possible leverage and be carried out in close collaboration with other World Bank managed activities, such as the proposed Social Entrepreneurship, Empowerment, and Cohesion Project (P171456), which will develop and apply a set of participatory citizen engagement tools to facilitate engagement with host and refugee populations, and the proposed State Building Fund (SPF) Project’s Information, Counseling and Referral Support Program, which will cover, inter-alia, referral to municipality-run support activities, as appropriate. Leveraging of citizen engagement activities with the mentioned activities will be carried out in selected municipalities where there is an overlap between the individual projects, such as Adana, Kahramanmaras, and Osmaniye. Experience from these activities will however help to inform activities in other areas. Activities under the SPF will, inter alia, include information related to municipal services. The specific interactions between these operations will be further defined and agreed in close collaboration with the
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respective projects early during implementation. The Bank will facilitate collaboration on the FRIT projects as possible with the citizen engagement activities of ILBANK.
74. Gender: Turkey ranks 130th out of 149 countries in the World Economic Forum’s Global Gender Gap Report33. As part of project preparation, gender analysis was undertaken, together with a detailed literature review and focus group discussions with women from both refugee and host communities, to identify specific gender gaps among host and refugee populations in the project areas. While individual living conditions of SUTPs vary with factors such as socioeconomic status and location of settlements, evidence from the analysis suggests that the poor housing conditions, including overcrowding and associated access to services such as safely managed water and sanitation for a large proportion of the lower income refugee communities is an issue.
75. The project scope narrows down to three specific gender gaps that could be addressed through project implementation. First, there is a clear lack of voice for both Turkish and refugee women. Research on women’s representation in local level governance shows one of the lowest rates in the world. In 2014, women constituted 2.8 percent of the Mayors and 10.7 percent of the municipal Councilors.34 According to the Urban Refugee Network35, many Syrian refugee women lack a forum to discuss needs, share information and exercise community leadership. A UN Needs Assessment of Syrian women refugees carried out in 2018 found that nearly half of the refugee women in Adana had no social relationships with the Turkish host community due to seclusion (15 percent did not leave their homes), and the lack of social ties was greater for women with less education36. Second, refugee women have limited economic opportunities. According to the gender analysis, only 15 percent of refugee women are engaged in income generating jobs37. The same assessment indicated that only a small number of women (7 percent) have taken part in vocational training, and when they do take part the most popular areas of study are hairdressing (30 percent) and needlework (27 percent), which are closely related to traditional gender roles and provide limited opportunity for formal employment. And finally, there is lack of access to information that also includes language barriers. While women are mainly responsible for management and use of services such as water, sanitation, hygiene and waste management at the household level, they have limited interaction with host communities if they do not work outside. From the UN Women’s Needs Assessment, Syrian women are unaware of various support services: for example, 68 percent of women do not know about free legal counselling; 63 percent about home care, 59 percent about psychosocial support and 57 percent about childcare services. This applies to the project areas. In Kahramanmaraş, for example, the Municipality has introduced a subsidized water-use scheme for families in need. However, women seem to have insufficient knowledge and awareness of such schemes, which highlight a need for enhanced communication and information sharing in a manner and language accessible to them.
76. While there are other on-going projects in the country that promote female employment38, this project will promote three main actions to improve gender outcomes. First, the project will encourage refugee women to engage more actively with host communities and participate in decision-making to identify their priorities for support through the
33 World Economic Forum’s Global Gender Gap Report for 2018. http://www3.weforum.org/docs/WEF_GGGR_2018.pdf 34 Savas-Yavuzchere, P. and Cigeroglu-Oztepe, Misra 2016. “the Representation of Women in Turkish Local Governments. http://journals.euser.org/files/articles/ejis_jan_apr_16/Pinar.pdf 35 Urban Refugee Women’s Network – Turkey. https://www.refworld.org/pdfid/5a38e20a4.pdf 36 UN Women. 2018 Needs Assessment of Syrian Women and Girls. https://www2.unwomen.org/- /media/field%20office%20eca/attachments/publications/country/turkey/the%20needs%20assessmentengwebcompressed.pdf?la=en&vs= 3139 37 Source: United Nations Needs Assessment of Syrian Women and Girls under Temporary Protection Status in Turkey, June 2018 38 For example, the Social Entrepreneurship. Empowerment and Cohesion In refugee and Host communities in Turkey Project
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project at the neighborhood level. This will include specific actions to promote women voices and empower them to make decisions concerning their needs and priorities within the scope of the project. The project will specifically encourage adequate women’s representation at the community level decision-making forum under component 2d). The project will help create a safe space for refugee and host country women to share their views, needs, and suggestions by setting-up of separate meetings for women only to respect existing cultural norms. Decisions made will be recorded and shared with the participating municipalities to be reflected in further planning, decision-making and implementation of the project throughout the project implementation. Staff of the participating municipalities and utilities are trained to be sensitized for existing gender bias and norms, so that they could respond to these gender-disaggregated specific needs and requests from the community level decision-making forums. Second, the project will encourage municipalities to provide information for decision-making on their policies, plans, investments and available services in a format and language (Arabic and Turkish) that is user-friendly and accessible to women and the organizations that represent them. In addition, the project will undertake an education and awareness campaign, support WASH initiatives that are sensitive to household gender inequalities and promote behavior change. Third, the project will support and promote the formation of women-led community level groups, where possible, to manage operation and maintenance for hygiene and sanitation infrastructure at the neighborhood level in the selected low-income communities with significant refugee and host populations, and will provide training to empower them to do so. This will extend women’s household role as water managers to the neighborhood and give them voice. The project will encourage monitoring and management of municipal services to be identified in collaboration with relevant municipalities. Combining Turkish and refugee women on the committees could support social cohesion as well enabling them to better understand each other’s cultures.
77. These actions will be measured through the following indicators: (i) percentage of women’s needs and investment choices that were implemented by selected municipalities and SKIs (baseline 0%; target 70%); and (ii) The satisfaction rate of female users of WSS services and facilities provided by the project and their perception of responsiveness of the project to their needs and preferences (baseline 0%; target 70%). A survey will be conducted for a sample of communities at the baseline stage and at the end of project to assess the satisfaction with project outcomes by host and refugee communities.
VI. GRIEVANCE REDRESS SERVICES
78. Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org.
VII. KEY RISKS
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79. The overall project risk is rated as Substantial and risks in this category are briefly described below.
80. Political and Governance risks are rated Moderate. These risks are primarily related to the overall political context of the Syrian refugee crisis and its broader implications on stability in Turkey and the broader region. Specific political risks relate to the possibility of changes in the refugee population in form of either further increase or reductions depending on prevailing conditions, and potential impacts on project design. Water and sanitation investments will as far as possible be designed to accommodate different populations using phased or modular systems where appropriate. Further political risks are linked to local political and social cohesion risks associated with the refugee influx and potential implications on support for the project. The project through the citizen engagement component will seek to promote dialogue among host and refugee communities to improve social cohesion.
81. Macroeconomic risk is rated as Substantial. The Turkish economy experienced instability between 2018-2019, following a period of growing macro imbalances and economic overheating in 2017-2018. The economy has stabilized more recently thanks to important external adjustments: a reversal in current account imbalances, declining external debt of banks, and a gradual recovery in forex reserves. These have contributed to currency stability. There are a priori three possible macroeconomic risks to the project. The first is currency risk for municipalities. Though the Lira has been more stable recently, uncertainty in global markets, including from the recent Coronavirus outbreak pose risks for all emerging markets. Some of the risk could be offset by trade diversion from China that benefits Turkey. The second relates to the authorities’ fiscal consolidation path, which assumes a sharp decrease in capital expenditure. This may or may not affect public investment plans under the project as some of this risk may be mitigated by external project financing. Thirdly, the construction sector is among the most severely hit in the current downturn – leverage and exposure to forex debt will affect construction companies’ ability to respond to an increase in specialized construction investment under the project. Some of this risk may be mitigated by the availability of spare capacity in the construction sector, that may allow construction companies to respond quickly.
82. Technical design of project risk. There is a moderate potential risk that the implementation of activities financed from one source is given priority by certain municipalities over activities from another source. ILBANK and the selected municipalities will be required to clearly reflect in the Project Implementation Plan the concurrent parallel implementation of project activities financed from both sources, and to report on this aspect of implementation s as part of progress reporting to the Bank, as will be defined in the Project Operations Manual.
83. Institutional Capacity for Implementation and Sustainability risk: There is an increased implementation capacity risk given ILBANK’s expanding project portfolio with currently about US$730 million for Sustainable Cities series of project alone. This risk is to be mitigated through strengthening of ILBANK’s PMU capacity with additional staff in accordance with a Staffing Plan proposed by ILBANK. The list of additional staff and timing for their appointments was agreed with the Bank during appraisal and timeframes have been included as effectiveness conditions even though most of the staff are expected to be appointed before this date. ILBANK has requested retroactive financing from the IBRD loan to finance appointment of the additional PMU staff prior to effectiveness.
84. Stakeholder risk is rated as Substantial. This risk reflects past history where municipalities/utilities have withdrawn from similar projects either immediately before negotiations or subsequent to loan signing due to internal political and financial considerations. To mitigate this risk, municipalities/utilities are required to provide Municipal Executive Board/Utility Executive Board Decisions in support of their participation in the project and are also required to prepare feasibility studies that include a financial assessment of the sub-project and the municipality. The risk rating also reflects possible community resistance to certain investments. To mitigate this risk, required Environmental and
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Social Impact Assessments (ESIAs) or Environmental and Social Management Plans (ESMPs) will be prepared for each sub-project investment and a grievance redressal mechanism will be set up within the project. In addition, other citizen engagement mechanisms will also be exploited during the implementation period.
85. The project’s Environmental risk has been rated Substantial. The environmental risk has been downgraded to Substantial following the Concept stage after site visits carried out by Bank team. It is not expected that sub-projects will have significant adverse effects to human health and/or the environment and that the project will not result in transboundary impacts since there are no sub-projects in transboundary basins. Moreover, the areas likely to be affected by the project are not of high value and sensitivity. Appropriate mitigation measures for identified risks are highlighted in the relevant Safeguards documents.
86. The Social Risk Rating has been rated Substantial. The project will have overall positive social impacts on improving environmental infrastructure in provinces known to host the largest numbers of refugees in urban settlements. Social risks and impacts intrinsic to the project are comparable to other municipal investment carried out under the Bank financed Sustainable Cities Projects 1 and 2 with ILBANK which are assessed Moderate. Social risks are rated Substantial because the sub projects to be financed under the project are designed to benefit a broad population regardless of nationality or any vulnerability, which is considered to allow management of contextual risks which may otherwise be High. Risks related to the capacity of implementation agency (ILBANK) to manage social impacts is considered Substantial because ILBANK will be applying ESF for the first time. This will be mitigated by the hiring of an additional social specialist in the PMU as well as training of staff on the ESF.
87. Other risks rated as substantial pertain to the following.
88. Timeframe for EU grant approval and associated financing gap. The signing of the Administrative Agreement (AA) between the World Bank and the EU for the grant is subject to finalization of an update to the 2016 World Bank Group-EU Framework Agreement, which is under discussion by the parties. Accordingly, the project is presented to the Board with a financing gap for the grant, subject to signature of the AA. The European Commission (EC), in May 2019, invited the World Bank to enter into formal discussions with the EU Delegation in Turkey on the project design, to lead to a Contract between the Parties in the form of the AA. The Bank team has conducted such discussions with the EUD throughout the project preparation process and has reflected key aspects in the project design. To mitigate the risk of a potential delay in finalizing the update of the WBG-EU Framework Agreement, Technical Discussions for the grant were conducted along with the negotiations for the IBRD loan, to reduce the timeframe for Grant approval and signature once the Administration Agreement is signed. The Technical Discussions involved a full discussion and agreement between ILBANK and the World Bank on the terms and conditions of the draft Grant Agreement. Conclusion of the grant negotiations, based on the Technical Discussions, will be done after signing of the AA. ILBANK has indicated its preference to sign the loan and grant agreements with the Bank at the same time. However, should there be a significant delay in signing the grant, or non-approval of the grant, ILBANK would be able to sign the loan agreement and access IBRD funds prior to accessing the grant. Project activities have been structured to separate loan and grant financed activities in the Procurement Plan to allow implementation of the former to proceed while waiting for the AA to be signed, should it become necessary.
.
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VIII. RESULTS FRAMEWORK AND MONITORING
Results Framework COUNTRY: Turkey Municipal Services Improvement Project
Project Development Objectives(s) The Project Development Objective (PDO) is to improve host and refugee communities access to safely managed water supply, sanitation and solid waste services in selected municipalities affected by the influx of Syrians Under Temporary Protection in Turkey.
Project Development Objective Indicators
RESULT_FRAME_T BL_PDO Indicator Name DLI Baseline End Target
To improve host and refugee communities access to environmental infrastructure services
People benefitting from safely managed drinking water services 0.00 1,950,193.00 in the selected municipalities as a result of the project (Number)
People benefitting from safely managed drinking water services in the selected municipalities (out of which female) 0.00 51.00 (Percentage)
People benefitting from safely managed drinking water services in the selected municipalities (out of which host 0.00 1,728,142.00 community) (Number)
People benefitting from safely managed drinking water services in the selected municipalities (out of which refugees) 0.00 222,051.00 (Number)
People benefitting from safely managed sanitation services in 0.00 2,402,023.00 the selected municipalities as a result of the project (Number)
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RESULT_FRAME_T BL_PDO Indicator Name DLI Baseline End Target
People benefitting from safely managed sanitation services in 0.00 50.00 the selected municipalities (out of which female) (Percentage)
People benefitting from safely managed sanitation services in the selected municipalities (out of which host community) 0.00 2,165,834.00 (Number)
People benefitting from safely managed sanitation services in 0.00 236,189.00 the selected municipalities (out of which refugees) (Number)
People benefitting from safely managed solid waste services in 0.00 320,685.00 the selected municipalities as a result of the project (Number)
People benefitting from safely managed solid waste services in the selected municipalities (out of which female) 0.00 49.00 (Percentage)
People benefitting from safely managed solid waste services in the selected municipalities (out of which host community) 0.00 288,616.00 (Number)
People benefitting from safely managed solid waste services in the selected municipalities (out of which refugees) 0.00 32,069.00 (Number)
PDO Table SPACE
Intermediate Results Indicators by Components
RESULT_FRAME_T BL_IO Indicator Name DLI Baseline End Target
Environmental Infrastructure Investments Water supply network constructed, rehabilitated and/or extended (Kilometers) 0.00 2,062.00
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RESULT_FRAME_T BL_IO Indicator Name DLI Baseline End Target
Water treatment plants constructed or rehabilitated (Number) 0.00 1.00 Water reservoirs constructed or rehabilitated (Number) 0.00 43.00 Water pumping stations constructed or rehabilitated (Number) 0.00 16.00 Sewerage network constructed, rehabilitated and/or extended 0.00 495.00 (Kilometers) Wastewater treatment plants constructed or rehabilitated 0.00 7.00 (Number) Landfills constructed or rehabilitated (Number) 0.00 1.00 Satisfaction rate of female users of environmental infrastructure 0.00 70.00 services and facilities provided by the project (Percentage) Technical Assistance Number of municipal authorities and SKIs provided with capacity 0.00 5.00 building support through the Project (Number) Number of municipal authorities and SKIs that have prepared a Performance Improvement Action Plan through the project 0.00 4.00 (Number) Grievances registered related to delivery of municipal services 0.00 90.00 that are actually addressed and recorded (Percentage) Percentage of women’s needs and investment choices that were implemented by selected municipalities and SKIs (Percentage) 0.00 70.00
IO Table SPACE
UL Table SPACE
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Monitoring & Evaluation Plan: PDO Indicators Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection This indicator measures the Data to be compiled by cumulative number of municipal PIUs and people benefitted from recorded in PMU People benefitting from safely managed Semi- Reports from Municipal PIUs and safely managed drinking progress reports, based drinking water services in the selected annually PMU ILBANK PMU water services in the on updated municipalities as a result of the project selected municipalities that beneficiary’s records have been provided through from respective SKIs. this Project. Data to be compiled by This indicator measures the municipal PIUs and percentage of female recorded in PMU People benefitting from safely benefitted from safely Semi- Reports from progress reports, based Municipal PIUs managed drinking water services in managed drinking water annually PMU on updated and ILBANK PMU the selected municipalities (out of services in the selected beneficiary’s which female) municipalities that have connection records been provided through this from respective SKIs. Project.
This indicator measures the Data to be compiled by percentage of host municipal PIUs and People benefitting from safely community benefitted from recorded in PMU Semi- Reports from Municipal PIUs and managed drinking water services in safely managed drinking progress reports, based annually PMU ILBANK PMU the selected municipalities (out of water services in the on updated
which host community) selected municipalities that beneficiary’s records have been provided through from respective SKIs. this Project. People benefitting from safely This indicator measures the Semi- Reports from Data to be compiled by Municipal PIUs and managed drinking water services in percentage of refugees annually PMU municipal PIUs and ILBANK PMU the selected municipalities (out of benefitted from safely recorded in PMU
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which refugees) managed drinking water progress reports, based services in the selected on updated municipalities that have beneficiary’s records been provided through this from respective SKIs. Project. This indicator measures the Data to be compiled by cumulative number of municipal PIUs and people benefitted from recorded in PMU People benefitting from safely managed Semi- Reports from Municipal PIUs and safely managed sanitation progress reports, based sanitation services in the selected annually PMU ILBANK PMU services in the selected on updated municipalities as a result of the project municipalities that have beneficiary’s records been provided through this from respective SKIs. Project. This indicator measures the Data to be compiled by percentage of female municipal PIUs and People benefitting from safely benefitted from safely recorded in PMU Semi- Reports from Municipal PIUs and managed sanitation services in the managed sanitation services progress reports, based annually PMU ILBANK PMU selected municipalities (out of which in the selected on updated
female) municipalities that have beneficiary’s records been provided through this from respective SKIs. Project. This indicator measures the Data to be compiled by percentage of host municipal PIUs and People benefitting from safely community benefitted from recorded in PMU Semi- Reports from Municipal PIUs and managed sanitation services in the safely managed sanitation progress reports, based annually PMU ILBANK PMU selected municipalities (out of which services in the selected on updated
host community) municipalities that have beneficiary’s records been provided through this from respective SKIs. Project. People benefitting from safely This indicator measures the Semi- Reports from Data to be compiled by Municipal PIUs and managed sanitation services in the percentage of refugees annually PMU municipal PIUs and ILBANK PMU selected municipalities (out of which benefitted from safely recorded in PMU
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refugees) managed sanitation services progress reports, based in the selected on updated municipalities that have beneficiary’s records been provided through this from respective SKIs. Project. This indicator measures the Data to be compiled by cumulative number of municipal PIUs and people benefitted from recorded in PMU People benefitting from safely managed Semi- Reports from Municipal PIUs and safely managed solid waste progress reports, based solid waste services in the selected annually PMU ILBANK PMU services in the selected on updated municipalities as a result of the project municipalities that have beneficiary’s records been provided through this from respective SKIs. Project. This indicator measures the Data to be compiled by percentage of female municipal PIUs and People benefitting from safely benefitted from safely recorded in PMU Semi- Reports from Municipal PIUs and managed solid waste services in the managed solid waste progress reports, based annually PMU ILBANK PMU selected municipalities (out of which services in the selected on updated
female) municipalities that have beneficiary’s records been provided through this from respective SKIs. Project. This indicator measures the Data to be compiled by percentage of host municipal PIUs and People benefitting from safely community benefitted from recorded in PMU Semi- Reports from Municipal PIUs and managed solid waste services in the safely managed solid waste progress reports, based annually PMU ILBANK PMU selected municipalities (out of which services in the selected on updated
host community) municipalities that have beneficiary’s records been provided through this from respective SKIs. Project. People benefitting from safely This indicator measures the Semi- Reports from Data to be compiled by Municipal PIUs and managed solid waste services in the percentage of refugees annually PMU municipal PIUs and ILBANK PMU selected municipalities (out of which benefitted from safely recorded in PMU
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refugees) managed solid waste water progress reports, based services in the selected on updated municipalities that have beneficiary’s records been provided through this from respective SKIs. Project. ME PDO Table SPACE
Monitoring & Evaluation Plan: Intermediate Results Indicators Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Length of water supply network constructed, Semi- Reports from Municipal PIUs and Water supply network constructed, rehabilitated and/or annually PIUs ILBANK PMU rehabilitated and/or extended extended due to project activity. Number of water treatment Semi- Reports from Municipal PIUs and Water treatment plants constructed or plants constructed or annually PIUs ILBANK PMU rehabilitated rehabilitated due to project
activities. Number of water reservoirs Semi- Reports from Municipal PIUs and Water reservoirs constructed or constructed or rehabilitated annually PIUs ILBANK PMU rehabilitated due to project activities. Number of water pumping Semi- Reports from Municipal PIUs and Water pumping stations constructed or stations constructed or annually PIUs ILBANK PMU rehabilitated rehabilitated due to project
activities. Length of sewerage network Semi- Reports from Municipal PIUs and Sewerage network constructed, constructed, rehabilitated annually PIUs ILBANK PMU rehabilitated and/or extended and/or extended due to
project activities.
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Number of wastewater Semi- Reports from Municipal PIUs and Wastewater treatment plants constructed treatment plants annually PIUs ILBANK PMU or rehabilitated constructed or rehabilitated
due to project activities. Number of landfills Semi- Reports from Municipal PIUs and Landfills constructed or rehabilitated constructed or rehabilitated annually PIUs ILBANK PMU due to project activities. A targeted beneficiary satisfaction survey will The survey will be carried Satisfaction rate of female be carried out among out by selected NGOs and users of environmental the targeted Targeted consultants supported infrastructure services and Start and community groups at Satisfaction rate of female users of beneficiary through the project, and facilities provided by the end of the the start of the project environmental infrastructure services and satisfaction results will be reported to project and their perception project. and at an appropriate facilities provided by the project survey the municipalities and of responsiveness of the time after the services ILBANK and the World project to their needs and have been provided, Bank and EU. preferences. towards the close of
the project.
This indicator measures the number of municipal authorities and SKIs Number of municipal authorities and SKIs Semi- Reports from Municipal PIUs and benefitted from capacity provided with capacity building support annually PIUs ILBANK PMU building activities in the through the Project selected municipalities that have been provided through this Project. This indicator measures the Number of municipal authorities and SKIs number of municipal Reports from Municipal PIUs and that have prepared a Performance Annually authorities and SKIs that PIUs ILBANK PMU Improvement Action Plan through the have prepared a project Performance Improvement
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Action Plan through this Project. This indicator measures the number of grievances registered related to Grievances registered related to delivery Semi- Reports from Municipal PIUs and delivery of municipal of municipal services that are actually annually PIUs ILBANK PMU services that are actually addressed and recorded addressed and recorded in the selected municipalities through the Project. A survey will be conducted among Before the women who hygiene participated in needs and assessment activities Measuring women’s needs sanitation after facilities are or investment choices facilities constructed. The survey Percentage of women’s needs and regarding the hygiene and are Needs will measure if their Ilbank PMU and investment choices that were sanitation facilities under selected assessment, needs or investment Municipalities/SKIs. implemented by selected municipalities Component 2d that were and after Post-survey. choices are reflected in and SKIs implemented by selected the decisions made by municipalities and SKIs facilities municipality and SKI, (baseline 0%; target 70%). are and the built facilities implement are constructed in the ed. way that they
requested.
ME IO Table SPACE
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ANNEX 1: Implementation Arrangements and Support Plan
Project Implementation Roles and Responsibilities
1. The roles and responsibilities for the implementation of the project are outlined below:
2. The Government of Turkey, represented by the Ministry of Treasury and Finance, is the Guarantor of the loan.
3. ILBANK. ILBANK is the Borrower for the IBRD loan and will also be the primary recipient of the EU FRIT grant when it is approved. ILBANK is a state-owned development and investment bank, subordinated to the Ministry of Environment and Urbanization. ILBANK, as the national development and investment bank providing financial intermediary services for municipal infrastructure in Turkey, will also be the implementing agency for the Project.
4. ILBANK will carry out its roles as implementing agency through an existing Project Management Unit (PMU), under the bank’s International Relations Department. The PMU was originally established in 2005 for a Bank financed Municipal Services Project (MSP). It has since been responsible for implementing subsequent operations, including MSP-II (Additional Loan), Sustainable Cities Project (SCP), and SCP-II and SCP-II Additional Loan, and it has demonstrated its capacity for managing World Bank loans through these operations. Relevant technical and financial departments of ILBANK, as well as the regional directorates supporting the targeted municipalities will support the PMU in project implementation. ILBANK will procure or support municipalities/utilities to procure works, TA services and goods as required and will manage the implementation of project activities. The PMU has professional staff responsible for various aspects of project management, including procurement, financial management, social and environmental safeguards, communications, technical/engineering and monitoring and evaluation. Detailed operational modalities will be described in the Project Operational Manual. The PMU’s existing capacity will however be strengthened through hiring of additional staff and/or consultants in line with a staffing plan agreed with the Bank before project effectiveness.
5. Local/Municipal Level PIUs. The selected municipalities and utilities/SKIs as applicable based on the specific sub- project will be responsible for sub-project investment implementation and will set up municipal project implementation units (PIUs) at local level to ensure effective implementation. The local PIUs will comprise competent staff responsible for technical, procurement, financial and safeguards aspects of the sub-project activities. The staff may be seconded from the respective local institutions or may include individual consultants hired by these entities if existing capacity is not sufficient.
6. World Bank: The World Bank, as the EDF Trust Fund administrator, and IBRD lender, will be responsible for monitoring the implementation of project activities and will ensure compliance with the former`s procedures and guidelines. World Bank’s fiduciary arrangements, including its procurement and FM procedures, as well as its Environmental and Social Framework will apply. Detailed fiduciary and safeguards arrangements will be agreed with the implementing institutions, namely ILBANK and the municipalities/ water and wastewater utilities and will be reflected in the relevant legal documents and the Project Operations Manual.
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Figure 1.1: Project implementation roles and responsibilities
7. European Union Delegation: The EDF will co-finance the project through the FRIT Grant. The World Bank will enter into an Administration Agreement (AA) with the EUD to set up a Recipient-Executed Trust Fund. The AA will provide for the establishment of a Trust Fund to be administered by the World Bank, in the amount of EUR 139.8 million, which the World Bank will provide as a grant to ILBANK. After the AA is signed, the World Bank will enter into a Trust Fund Grant Agreement with ILBANK, which will be the recipient of the funds. ILBANK will be responsible for implementing the funds in accordance with overall project design, including fiduciary and safeguard arrangements, as set out in the POM. The implementation time frame of the EU grant is 48 months from AA signing.
8. Contractors: Qualified contractors will be competitively selected to implement sub-projects as per the needs of construction and/or rehabilitation works described within the activities.
9. Design Review and Supervision Consultants: A design review and supervision consultant will be awarded to provide supervision services for the construction and rehabilitation works. These Consultants will also support review of existing design documents and preparation of tender documents.
10. Capacity Building Consultants: Consultants will be hired to provide trainings and other capacity building activities as required for target groups. Capacity Building events will be organized for the staff of target
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municipalities/utilities to develop required skills in the municipalities to ensure the sustainability of project outcomes.
Financial Management and Disbursement
11. Banks in Turkey are subject to strict regulations and supervision by the Banking Regulation and Supervision Agency (BRSA). BRSA’s regulatory and supervisory framework meets modern standards preserving the solidity of the system. Banks in Turkey are required to prepare financial statements in compliance with the Turkish Accounting Standards which are based on and correspond to IFRS. The BRSA also issues rules governing the external audit of bank financial statements, and only auditors approved by the BRSA may carry out such audits. The external auditor is required to report to the BRSA on the internal control and risk management systems of banks as well as being obliged to report directly to the BRSA with respect to certain issues which may threaten the going concern nature of a Bank.
Implementing Entity
12. ILBANK first established as Belediyeler Bankasi in 1933 to finance the reconstruction activities of municipalities. ILBANK law (Law 4759) was updated in 2011 making it a joint stock development and investment bank that is subject to the banking law. Its objectives are meeting the financing needs of special provincial authorities, municipalities and their affiliated organizations and of local administrative associations and to provide consultancy services to these organizations on urban projects. ILBANK is a related establishment of Ministry of Environment and Urbanization of Turkey. The shareholders of the bank are the municipalities and special provincial administrations. Law 5779 on Allotments of General Budget Revenues to be allocated to Special provincial Authorities and Municipalities (2008) requires 2 percent of total tax allotment revenues distributed by the Ministry of Treasury and Finance through ILBANK to be deducted to contribute as capital to Iller Bank.
Implementation Arrangements
13. ILBANK has a Project Management Unit (PMU) under its International Relations Department responsible for foreign financed projects including SCP I, SCP II and SCP II Additional Financing (SCP II AF). The PMU is organized according to functions and its financial management department is responsible for such arrangements under SCP I, II and II AF. They will continue with this responsibility under the FRIT MSP. ILBANK will provide technical support to qualifying municipalities and utilities in identifying and appraising investments. ILBANK will also provide funding for the eligible investment projects both from the EU grant and WB loan. ILBANK will be responsible for the procurement of all activities under component 2 including the consultancy services for design review, support for preparation of bidding documents and supervision of construction and rehabilitation works under Component 1. Procurement of investments will also be done by ILBANK with the representatives from the beneficiary municipalities and utilities in the bid evaluation committees and the contracts will be signed by the municipality/utility and the firm. Payments to the suppliers will be registered directly by ILBANK upon submission of acceptable approval documents. PMU in ILBANK will be responsible for the management of the Designated Accounts and project accounting and reporting.
Staffing
14. The PMU at the ILBANK has a dedicated financial management unit responsible for FM functions of all foreign financed projects. There are currently 11 staff working in this department and ILBANK will assign at least one
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financial management specialist to work solely on the financial management aspects of the MSP FRIT Project. ILBANK has the option to hire consultants to enhance its implementation capacity since Component B of the FRIT MSP has funding available for this purpose. The qualifications and experience of the current staff are satisfactory to the Bank. They have worked in the implementation of the Municipal Services project, its additional financing and currently working for SCP I, II and AF. The experience they have gained in the implementation of these projects will be utilized in conducting the financial management arrangements of the FRIT MSP.
Accounting Policies and Procedures
15. ILBANK has a web-based information system (IL_BIS) that links all departments of the institution, allowing them to execute, monitor and report using the same data source. All the regional offices are also connected to the central IL_BIS system. Project accounting for the SCP I and II are integrated into this system using sub-accounts that were created under the Bank`s main chart of accounts. The PMU staff prepares the payment orders and the accounting entries into the Bank`s main accounting system are made by the Accounting Department`s staff. Financial Interim Unaudited Financial Reports are also generated automatically through the system. FRIT MSP will also rely on the same systems and the accounting and reporting for the project will also be fully integrated into the IL_BIS system. ILBANK will conduct the necessary modifications/additions to the IL_BIS system and these arrangements are expected to be in place before project effectiveness.
16. ILBANK has robust systems, manuals and guidelines regulating the internal controls environment. The accounting and reporting systems at ILBANK are geared toward producing statements and information as required by Turkish laws and regulations. Additionally, lLBANK has developed and executed specific internal control procedures for the implementation of the foreign financed projects including the SCP Program and these procedures are clearly defined in the project financial management manual which is available in the ILBANK web-site.
17. FRIT MSP will disburse through sub-loans and grant agreements that will be made between ILBANK and qualifying municipalities and utilities. The municipalities will submit the payment requests to the PMU after verifying completeness of all documentation is complete will prepare the payment order through its financial management department. The payment will be made directly from the designated accounts to the constructer’s bank account.
18. The PMU has been utilizing detailed checklists that are completed and signed by the relevant staff before processing the payments. Those checklists include financial controls on advance payments made for works in progress, financial controls on payments to individual consultants and corporate consultants, financial controls on works progress payments, financial controls on goods purchases. These checklists with a few modifications to enable funding source identification will also be utilized for MSP FRIT.
Internal Audit
19. ILBANK has an Internal Controls Department, Risk Management Department and an Inspection Department. All three departments report directly to the Board of Directors. The Internal Controls Department has identified “standard control points” for foreign financed loans. This is standard for all departments and controls points are defined for each function of ILBANK. The International Relations Department, like other departments of ILBANK, is required to complete the form monthly and provide assurance through self-declaration that all control points have been complied with. As a part of its normal procedures, the Department conducts quarterly on-site review of compliance with the control points. There have not been any irregularities observed in foreign financed loans as a part of the internal control review. MSP FRIT will also be a part of regular review of internal controls department.
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The Risk management Department reviews loans before they are granted and through their effectiveness. ILBANK, through its special status, is required to provide provisions for its loan portfolio. The Risk management Department conducts continuous monitoring and reports to the Board on the status of ILBANK`s loan portfolio. Loans that will be granted to municipalities /utilities under MSP FRIT will be monitored by the Risk Management Department. The Inspection Department is responsible for investigating irregularities, as well as conducting regular reviews of ILBANK systems.
External Audit
20. Annual project financial statements (integrating both sources of financing) for the project, as well as ILBANK financial statements will be subject to independent audit by auditors that are acceptable to the Bank. ILBANK has been submitting audited entity and project financial statements to the Bank for MSP and SCP. ILBANK`s entity financial statements prepared in accordance with International Financial Reporting Standards (IFRS) have been audited by private sector auditors in accordance with International Auditing Standards. The entity audited financial statements had unqualified (clean) audit opinions for the last three years. ILBANK additionally prepares financial statements for the projects it is implementing, and these financial statements are audited by the Treasury Controllers who are the government auditors who are responsible for the audit of World Bank financed projects implemented by government institutions. The project financial statements for SCP (separately prepared for the loan and the EU grant) have been received on time and include unqualified (clean) audit opinions as well. (SCP II audit report has not yet been submitted as ILBANK did not utilize any funds from the project in 2018 which is the year with the most recent audit reports available). No material issues were identified in the management letter either.
21. Under the MSP FRIT project ILBANK will be required to submit its audited entity financial statements prepared in accordance with Turkish Accounting Standards (which are fully compatible with International Financial Reporting Standards) and project financial statements to the Bank within 6 months following the end of year. The project financial statements are required to be made publicly available in accordance with the World Bank guidelines. The following chart identifies the audit reports and their due dates:
Table 1.1 Audit Reporting Requirements Audit Report Due Date Entity financial statements (FI) prepared in accordance Within six months after the end of each calendar year with Turkish Accounting Standards and also at the closing of the project. Project financial statements (PFS) for the loan part Within six months after the end of each calendar year including SOEs and the designated accounts. and also at the closing of the project. Project financial statements (PFS) for the grant part Within six months after the end of each calendar year including SOEs and the designated accounts. and also at the closing of the project.
22. Currently the financial statements prepared by the municipalities are not subject to independent external audit except the annual audit conducted by the Turkish Court of Accounts (TCA), the supreme audit institution in Turkey. Annual TCA audit reports will be reviewed by the project team as a part of project supervision.
Reporting and Monitoring
23. ILBANK will prepare Interim Unaudited Financial Statements (IFRs) for the project following the same format utilized for the SCP I and II. The agreed formats of the IFRs are attached to the negotiations and technical discussion
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minutes. ILBANK will also ensure that the reports with financial content are automatically generated from IL_BIS system.
Disbursement Arrangements
24. The project will be disbursing on the traditional disbursement techniques. Two Designated Accounts will be created for the project (one for EU grant and one for the WB loan). ILBANK will open the designated accounts at a commercial bank that is acceptable to the World Bank. Designated accounts for SCP I and SCP II are at Ziraat Bankasi. Two authorized signatures who will be specified in the project FM manuals will sign the withdrawal applications. The minimum application size for payments directly from the loan account for the issuance of Special Commitments, as well as the Statement of Expenditure (SOE) limits, will be described in the disbursement letters. Full documentation in support of SOEs, including completion reports and certificates, would be retained by the ILBANK for at least two years after the World Bank has received the audit report for the fiscal year in which the last withdrawal from the loan account was made. This information will be made available for review during supervision visits by World Bank staff and for annual audits. Disbursements for expenditures above the SOE thresholds will be made against presentation of full documentation of the expenditures.
Figure 1.2. Funds Flow
World Bank Project Implementation Support Plan
25. The Implementation Support Plan (ISP) is tailored to the specific context and characteristics of the project, based on the dispersed geographic scale of investments, and existing capacity of the implementing agencies and arrangements. The ISP will be reviewed periodically to ensure that it remains fit for purpose and responsive to the project’s implementation support needs over its lifetime.
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26. Project Launch Workshop. A project launch workshop will be held soon after project approval. It will bring all project stakeholders together to ensure that the project scope, design, process and responsibilities are understood.
27. Implementation support missions. The project would be supervised at least twice a year and the recommendations of such supervisions would be presented to ILBANK and recorded in an Aide Memoire. The World Bank would be represented by a task team leader, supported by a team of experts with various skills as needed, including fiduciary (Procurement and financial management), safeguards (Social and environmental), monitoring and evaluation, and technical specialists. The goal would be to: (a) undertake required policy dialogue with the Government of Turkey, ILBANK, and local governments, related to the project and the sector; and (b) coordinate with other donors.
28. The semiannual supervision missions and short/ follow-up technical missions as needed in specific areas, will focus on the following areas:
a) Strategic support. Supervision missions will meet with ILBANK PMU and relevant municipality PIU representatives to: (i) review progress on the project’s activities; (ii) discuss strategic alignment of the project’s different activities, especially at the planning level, between the relevant stakeholders; and (iii) evaluate progress on cross-cutting issues such as M&E, training, communication, knowledge exchange, innovation, dissemination of project results and experiences, and coordination between the relevant stakeholders. b) Technical support. Supervision will concentrate on ensuring the technical quality of bidding documents, TORs, evaluation reports, construction plans, products delivered by consultants, and investment activities/targets, working in close collaboration with ILBANK and the design review and construction supervision consultants. During construction and commissioning, technical supervision will be provided to ensure that technical contractual obligations are met. Regular site visits will be carried out during project implementation and will involve technical specialists from the World bank, ILBANK and consultant teams as needed. c) Fiduciary support. Periodic supervision of procurement and FM support will be carried out by the World Bank semiannually to (i) perform desk reviews of project interim financial reports and audit reports, following up on any issues raised by auditors, as appropriate; (ii) assess the performance of control systems and arrangements; (iii) update the FM rating in the FM Implementation Support and Status Report as needed; (iv) provide training and guidance on carrying out procurement processes in compliance with the Procurement and Anticorruption Guidelines and the POM; (v) review procurement documents and provide timely feedback to the PIU; (vi) carry out the post review of procurement actions; and (vii) help monitor project progress against the Procurement Plan and identified performance indicators of the contracts. d) Safeguards support. The coordination that began during preparation will continue throughout project implementation, especially to ensure that the relevant safeguards concerns are included in the works financed under the project through due diligence from applications of the site-specific ESIAs, ESMPs, and RAPs and effective mitigation measures. Supervision from the World Bank safeguard specialists will take place at least twice a year. 29. Mid-term review. A mid-term review of the project will be carried out about two years into implementation to assess overall progress towards meeting the development objective, and to address any changes to project design or implementation required to meet the objectives.
30. Implementation Resource Requirements. Table 1.2 below reflects estimates of skill requirements, timing, and resource requirements over the life of the project. these projections are subject to modification as needed over the course of implementation.
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Table 1.2. Implementation Support Resource Estimates Resource Estimates Time Focus Skills Needed (Staff Weeks) First 12 Project rollout, management, and implementation Task team leads 6 per task team leader months support coordination per year Refine subcomponent activities and ensure quality Task team leads/technical 2 per task team leader of detailed designs specialists per year Social and environmental safeguards, including risk Social and environmental 4 per year mitigation measures specialist Technical and procurement review of TORs and Task team leads, technical 6 per year bidding document specialists, procurement specialists Fiduciary arrangements and FM systems FM specialist 3 per year Promoting innovation in the project Task team leads/technical 3 per year specialists 12 to 72 Procurement review and feedback of bidding Procurement specialist 6 per year months documents and consultant contracts Technical review of TORs, technical reports, and Task team leads, technical 6 per year bidding documents specialists Non-lending TA, capacity and institutional Task team leads, technical 4 per year strengthening efforts specialists FM supervision FM specialist 3 per year Social safeguards – supervision Social Development specialist 4 per year Environmental safeguards – supervision Environmental specialist 4 per year Project management, M&E, and project Task team leads, technical 8 per year supervision coordination specialists Operational support, M&E, lessons learned, Technical specialists and 6 per year progress and final reporting. operations officer
Table 1.3. Skill Mix Requirements Skill Needs for Supervision Comment Task team leader Headquarters based Co-Task team leader Region based Co-Task team leader Country based WSS/technical specialist Country based (including consultant) Solid Waste Management Specialist Region based (including consultant) FM specialist Region based Procurement specialist Region based Social Development specialist Country based Gender Specialist Country/HQ based Environmental specialist Country based Lawyer Region based Disbursement officer Region based
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ANNEX 2: Detailed Project Description
1. Background. The Project aims to improve host and refugee communities access to safely managed water supply, sanitation and solid waste services in targeted municipalities affected by the influx of Syrians Under Temporary Protection in Turkey. The project focuses on five municipalities or provinces (i.e. Adana, Kahramanmaras, Kayseri, Konya and Osmaniye) out of the ten most impacted by the refugee influx in Turkey as identified in the EU Needs Assessment. The selection of the five municipalities to be supported through the current project was based on not just the identified needs, but also eligibility for World Bank financing of sub-projects that do not trigger World Bank OP 7.50 Projects on International Waterways. Sub-projects triggering this policy are to be supported by other development partners, including AFD.
2. Target Group and Final Beneficiaries. The final beneficiaries comprise the populations in the affected municipalities, including the refugees and host populations. Only a small share (less than 10 percent) of the refugee population resides in camps, while the majority live outside camps, mostly in urban areas. There are two designated camps in the targeted provinces: Kahramanmaras' Merkez Container Camp which hosts about 14,811 refugees, and Adana Sancam Container Camp which hosts about 26,700 refugees. The primary project beneficiaries include both the refugees and host communities in the five municipalities of Adana, Kahramanmaraş, Osmaniye, Kayseri and Konya targeted under this project and is estimated to be more than 3.3 million. Approximately 301,890 refugees (or 9 percent of the total beneficiaries) and 3,021,000 of the host population will be direct beneficiaries of the environmental infrastructure investments under Component 1.
3. Project Components and Estimated Costs39. The Project will comprise two components
(i) Component 1. Environmental Infrastructure Investments: This component will finance the construction and rehabilitation works for water supply, sanitation, and solid waste management infrastructure in the targeted municipalities to achieve improvements in access, service quality and continuity of municipal services; and smaller scale critical facilities to address immediate municipal service needs of vulnerable SUTP and host communities at the neighborhood or settlement level, to be identified in a participatory manner by the beneficiaries. Individual infrastructure facilities will, where appropriate, consider adaptive designs that would allow for a scale up or down of capacity in the event of unanticipated changes in the refugee population. The component may finance goods, works, non-consulting and consultant services towards these activities.
(ii) Component 2. Technical Assistance for Project Management and Supervision, Capacity Building, Communication and Citizen Engagement. This component will finance goods and consultancy services for the following activities:
a) Project Management. This activity will finance goods and consulting services required for coordination and day-to-day project management, including management of procurement and financial management aspects, management of social and environmental safeguards, including dam safety requirements associated with the project, technical and contract management, monitoring and evaluation (M&E), and project reporting and communications.
b) Consultancy services for design review and supervision of environmental infrastructure investments. This
39 Please see footnote 15, which is applicable for all references to the grant in this Annex.
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activity will finance consultancy services for design review and preparation of bidding documents, taking into account climate change considerations, and supervision of construction and rehabilitation works for proposed environmental infrastructure investments under Component 1.
c) Citizen Engagement, Public Communication and Visibility activities. This activity will finance: (i) Communications and Visibility activities for the project. A detailed Communication and Visibility Plan will be developed at the start of implementation, in line with EU Communications and Visibility Manual for EU External Actions40, as well as the World Bank’s external communications guidelines. Communications activities will also seek to target critical public education messaging to different stakeholder groups, including children and youths, and adults in relevant languages.
(ii) Citizen/Community engagement activities to facilitate effective two-way engagement among stakeholders, including Turkish citizens and SUTPs and municipalities and SKIs to identify the needs and priorities for enhancing service delivery to all people in the beneficiary communities.
d) Institutional Capacity Building activities targeting the participating municipalities, utilities and ILBANK. This activity will finance capacity building activities, including inter-alia, training and workshops aimed to improve performance efficiency, positively change behavior, and increase capacity within municipalities and SKIs/utilities to further modernize their operations to optimize efficiency and effectiveness in service delivery while embracing principles such as resilience, financial and environmental sustainability, and inclusion. These activities will also seek to contribute to increased water security through more efficient delivery, and thus increased resilience to climate change.
A breakdown of detailed cost estimates for activities to be financed under the project, as tentatively agreed at appraisal stage, is presented in Table 2.1 below.
Table 2.1 Indicative Detailed Activities and Cost Estimates41 FRIT Grant FRIT Grant (% Total Cost Total Cost Category IBRD (EUR) (EUR) of total (EUR)) (in EUR) (in US$) Component 1: Environmental
Infrastructure 1a. Water Supply Investments Adana Kozan İmamoğlu Yedigöze Drinking Water Transmission 0 21,850,000 0 21,850,000 24,253,500 Line Yedigöze Water Treatment 0 13,150,000 0 13,150,000 14,596,500 Plant Kozan Pınargözü Drinking Water Transmission Line and 28,070,000 0 100 28,070,000 31,157,700 Network Kahramanmaras Kahramanmaraş (Centrum) Drinking Water, Sewerage and 0 17,000,000 0 17,000,000 18,870,000 Stormwater Project West Part
40 https://ec.europa.eu/europeaid/work/visibility/_en 41 The US$ amounts are subject to changes due to exchange rate changes.
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FRIT Grant FRIT Grant (% Total Cost Total Cost Category IBRD (EUR) (EUR) of total (EUR)) (in EUR) (in US$) Elbistan Drinking Water 8,000,000 0 100 8,000,000 8,880,000 Network Project Elbistan Drinking Water 0 25,000,000 0 25,000,000 27,750,000 Transmission Line Konya Akşehir Water Supply Project 4,710,000 0 100 4,710,000 5,228,100 Osmaniye Osmaniye (Centrum) Drinking 0 27,650,000 0 27,650,000 30,691,500 Water Project Priority public hygiene investments at neighbourhood 500,000 0 100 500,000 555,000 level 1a. TOTAL Water Supply 41,280,000 104,650,000 28 145,930,000 161,982,300 Investments 1b. Sanitation Investments Kahramanmaras Ceyhan Basin Wastewater Treatment Plants (Goksun & 0 5,500,000 0 5,500,000 6,105,000 Ekinozu) Ceyhan Basin Wastewater Treatment Plants 2,900,000 0 100 2,900,000 3,219,000 (Caglayancerit & Andirin) Kahramanmaraş (Centrum) Drinking Water, Sewerage and 18,800,000 0 100 18,800,000 20,868,000 Stormwater Project East Part Kayseri Kayseri Wastewater Treatment 12,500,000 0 100 12,500,000 13,875,000 Plant - Phase 1 Kayseri Wastewater Treatment 0 12,500,000 0 12,500,000 13,875,000 Plant - Phase 2 Konya Ilgin Wastewater Treatment 3,900,000 0 100 3,900,000 4,329,000 Plant Çumra Wastewater Treatment 4,560,000 0 100 4,560,000 5,061,600 Plant Osmaniye Osmaniye (Centrum) Sewerage 29,910,000 0 100 29,910,000 33,200,100 Project Priority public hygiene investments at neighborhood 500,000 0 100 500,000 555,000 level 1b. TOTAL Sanitation 73,070,000 18,000,000 80 91,070,000 101,087,700 Investments 1c. Solid Waste Investments Kahramanmaraş Northern Districts Integrated Solid Waste 17,000,000 0 100 17,000,000 18,870,000 Project Category FRIT Grant IBRD (EUR) FRIT Grant (% Total Cost Total Cost
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(EUR) of total (EUR)) (in EUR) (in US$) 1c. TOTAL Solid Waste 17,000,000 0 100 17,000,000 18,870,000 Investments Sub-total (Component 1: 131,350,000 122,650,000 52 254,000,000 279,230,000 Environmental Investments)42 Component 2: Technical Assistance for Project Management, Supervision,
Capacity Building, Communication and Citizen Engagement 2a. Project Management i) Operating Costs 0 500,000 0 500,000 550,000 ii) Consultancy services for 780,000 0 100 780,000 857,500 PMU iii) Procurement of Video Conference System/s for 0 1,325,000 0 1,325,000 1,456,600 ILBANK HQs and Regional Directorates 2b. Design Review and 0 10,250,000 0 10,250,000 11,268,000 Supervision 2c. Institutional capacity 0 630,000 0 630,000 692,600 building activities 2d. Citizen and Community 370,000 0 100 370,000 407,000 Engagement Activities 2e. Communications and 735,000 0 100 735,000 808,000 Visibility activities Sub-total (Component 2: Technical Assistance for Project Management, 1,885,000 12,705,000 52 14,590,000 16,039,700 Supervision, Capacity Building, Communication and Citizen Engagement)
TOTAL 133,235,00043 135,355,00044 50 268,590,000 295,269,700
Detailed description of sub-project investments at Appraisal Stage
A: Adana Municipality
4. Adana context. During the Syrian war Adana became one of the most preferable arrival points for Syrian refugees. The refugee population in Adana mostly includes Syrians and Iraqis majority of whom are living in central districts of Adana. Adana province has a total population of about 2,220,125 people out of which 238,556 (or 10.8 percent of the total population) are SuTP’s45. There is one refugee camp, the Saricam Container Camp, in the province of
42 A contingency amount for investments in the amount of about Euro 984,904 will be included in the grant amount for component 1 bringing the total grant amount for the entire project to Euro 134,219,904. 43 See 42 above i.e. total Grant amount includes the contingency will add up to Euro 134, 219, 904. 44 This amount includes the front-end fee of US$372,040 shall be included in the project cost. 45 As per the address-based census45 for 2018
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Adana which hosts about 20,700 SuTP’s46. The increased population due to the high influx of refugees resulted in additional demand for municipal and infrastructural services including water systems.
5. The water supply and sanitation services are provided by Adana Water and Sewerage Administration General Directorate (ASKİ). The service provision area of ASKI has increased considerably with the change of Adana to a metropolitan municipality. Majority of the settlements in the region use well water. In drought years and seasons, well yields significantly reduces. The use of groundwater wells and associated pumping in these areas have caused high energy expenditures and operational costs for ASKI. The ageing water supply and distribution networks in the service areas are characterized by high NRW (61.6 percent) and water losses (57.7 percent)47. In order to solve water deficiency problems in some settlements of Adana, ASKI has initiated a design for Yedigöze Drinking Water Transmission Line and Water Treatment Plant Project.
6. Adana Sub-Project. This Sub-Project aims to supply water to 141 settlements from Yedigöze Dam Reservoir which will eliminate well usage in these settlements. The total project beneficiaries are estimated at 506,636 people out of which 49,423 (or 10 percent of the total population) are SuTP’s. Investments in Adana cover: - Kozan Imamoglu Yedigoeze Drinking Water Transmission Line (35.4 km transmission line), - Yedigoeze Water Treatment Plant (capacity: 115,776 m3/day), and - Kozan Pinargoezu Drinking Water Transmission Line and Network (28.12 km transmission line and 310 km network).
7. Through the Project, water will be taken from the existing Yedigöze Dam reservoir (in Ceyhan Basin) and transferred to a new Water Treatment Plant (with a planned capacity of 115,776 m3/day) which will be constructed through the project. The treated water from the Yedigöze WTP will be used to supply safe drinking water to the 4 districts of Imamoglu, Kozan, Ceyhan and Yumurtalik and 137 neighborhoods in the Ceyhan basin. The new system is expected to eliminate the existing use of groundwater wells. Energy costs of the system are expected to decrease significantly as the water from the reservoir will be distributed by gravity. In Kozan, existing asbestos pipes will be replaced with ductile iron and high-density polyethylene (HDPE) pipes which will lead to significant decrease in water losses. The proposed investments in Adana metropolitan municipality are summarized in table below.
Table A2.2: Adana investment components No Investment name Scope Budget (million EUR) A-1 Kozan İmamoğlu Yedigoeze • 35.4 km transmission line to Kozan (Ø700 mm-Ø1,400 21.85 Drinking Water Transmission mm ductile iron pipes) with auxiliary structures Line (washout and air relief valve chambers, etc.) A-2 Yedigoeze Water Treatment • Construction of a new WTP with a capacity of 115,776 13.15 Plant m3/day (1,340 l/s) A-3 Kozan Pınargoezue Drinking • Renewal of existing 28.12 km transmission line; 28.07 Water Transmission Line and • 310 km water distribution network including Network • 8 Pumping stations, water reservoirs (4 new), 2 collection tanks and auxiliary structures TOTAL 63.07
B: Kahramanmaraş Municipality
46 UNHCR Turkey: Syrian Refugee Camps and Provincial Breakdown of Syrian Refugees Registered in South East Turkey (January 2020): https://data2.unhcr.org/en/documents/details/73300 , accessed on January 15, 2020 47 According to PID for Adana
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8. Kahramanmaraş context. Kahramanmaraş is one of the 10 provinces in Turkey with the highest Syrian refugee population. The Syrian population in the Province has increased by 78 percent in the last six years, 2012-2018. In 2018, Kahramanmaraş province had a total population of about 1,144,851 people out of which 92,630 (or 8.1 percent of the total population) were SuTP’s48. There is one refugee camp, the Merkez Container Camp, in the province of Kahramanmaraş which hosts about 10,859 SuTP’s49. Kahramanmaraş became a Metropolitan Municipality following the administrative reforms, and the water supply and wastewater service utility, Kahramanmaraş Water and Sewerage Administration General Directorate (KASKİ) was established in 2014. In accordance with the changes in municipal legislation, the service area of the Metropolitan Municipality and KASKI is defined by provincial boundaries. Accordingly, the personnel, assets, investments, liabilities, and receivables related to the provision of water and wastewater services carried out before 2014 by the sub-provincial municipalities, the Special Provincial Administration (SPA) and other service providers within the provincial boundaries, were transferred to KASKİ. The provision of solid waste services in terms of waste collections remains with sub-province municipalities, while the disposal and/or recovery of the collected municipal waste is the responsibility of the Metropolitan Municipality.
9. Kahramanmaraş Sub-Projects. The proposed subprojects are aimed to improve access to safely managed water supply, sanitation and solid waste services in the proposed project areas in Kahramanmaraş metropolitan municipality. At appraisal stage, six investment sub-projects were identified:
• Kahramanmaraş Northern Districts Integrated Solid Waste Project • Kahramanmaraş (Centrum) Drinking Water Project • Kahramanmaraş (Centrum) Sewerage and Storm Water Project • Elbistan Drinking Water Network Project • Elbistan Drinking Water Transmission Line • Ceyhan Basin Wastewater Treatment Plants
10. Kahramanmaraş Northern Districts Integrated Solid Waste Project. The sub-project is composed of construction of a sanitary landfill (including a mechanical separation facility of 757 tons/day and a composting plant of 410 tons/day), two transfer stations (in Goksun and Elbistan) and rehabilitation of 24 wild dumpsites. Rehabilitation of 22 wild dumpsites (mainly of former small towns) will be done mainly by transferring dumped wastes to the new landfill site and 2 wild dumpsites (Afsin and Elbistan) will be rehabilitated on site.
11. Kahramanmaraş (Centrum) Drinking Water Project. The sub-project includes rehabilitation and construction works in water distribution network including establishment of pressure zones, DMAs, SCADA system and installation of flow meters and pressure reduce valves. Within the scope of this sub-project, there are 59 water reservoir areas of which 38 are planned to be constructed. For the remaining, some of them will be abandoned or rehabilitated. Currently, varying pressure in the distribution network cause problems and the NRW in city is above 60 percent.
12. Kahramanmaraş (Centrum) Sewerage and Storm Water Project. The sub-project includes rehabilitation and construction of 400 km sewerage network and 100 km storm water network. The sub-project aims to solve the problematic areas in terms of sewerage and storm water networks in the city center, specifically Onikişubat and
48 As per the address-based census48 for 2018 49 Calculations based on PID for Adana and projected estimates for the year 2020
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Dulkadiroğlu neighborhoods. The city center is located to foothill of Ahır Mountain. The rainwater from the high slopes of the mountain arrives to city center and causes flooding in streets since the closed storm water boxes are not capable of carrying the surface water flow. Recently in June 2018, a storm disaster, caused 3 losses in the city center besides the economic losses. It is reported that some of the storm water manhole lids and grids are covered or remain under roads which also prevents storm water entering through these grids/lids.
13. Ceyhan Basin Wastewater Treatment Plants. Ceyhan basin is one of the 25 basins in Turkey extends from İskenderun Bay to inner Anatolia region. Ekinözü, Çağlayancerit, Andırın and Göksun are sub-provinces of Kahramanmaraş and part of Ceyhan basin. According to the Ceyhan Basin Pollution Prevention Plan prepared in 2016, the wastewater treatment plants for Ekinözü, Çağlayancerit, Andırın and Göksun are parts of the measures required to prevent pollution in the basin. The increased population with the addition Syrian refugees increases the pressure on the river basin due to untreated wastewater discharges. The project aims to enable KASKI (General Directorate of Kahramanmaraş Water and Sewage Administration) to provide local population and Syrian refugees with improved wastewater services. The project will also contribute to the prevention of pollution in Ceyhan River Basin.
14. The following 4 WWTPs and relevant collector line constructions are included under the sub-project:
• Ekinoezue WWTP and Collectors: 0.95 km of Ø400 Concrete Pipes, 1.1 km of Ø200 Concrete Pipes, 23 Manholes, 1 pumping station, 1 WWTP • Çağlayancerit WWTP: 1 WWTP • Andırın WWTP and Collectors: 4.23 km of Ø400 Concrete Pipes, 3.51 km of Ø200 Concrete Pipes, 163 Manholes, Pumping Station and 600 m Pressure Line (600 m), 1 WWTP • Goeksun WWTP and Collectors: 4.617 km of (Ø600) HDPE Pipes, 107 Manholes, 1 WWTP
15. Elbistan Drinking Water Network Project. Under this sub-project, rehabilitation of 255 km water distribution network, 4,128 km house connections, 3 km pressure lines, six new water reservoirs and five pumping stations will be rehabilitated/constructed. Elbistan city centre’s water is supplied by a group of caisson wells drilled near Ceyhan River. Water from these wells are pumped to 5 existing reservoirs that feed 5 pressure zones. The existing drinking network was first constructed in 1956-1957, then in 1984-1987 and finally in 2009. The pipeline constructed before 2009 is in poor condition. The water losses are high, estimated as 50 percent. Thus, some of the lines need to be renewed and new pipes need to be constructed for extending the distribution network to new developing areas.
16. Elbistan Drinking Water Transmission Line. Elbistan Drinking Water Transmission Line includes 120 km water transmission line and 6 water reservoirs (volumes between 100-2000 m3). First part of the transmission line will be constructed by DSI.
17. The proposed investments in Kahramanmaraş are summarized as follows (Table 2.3):
Table 2.3: Kahramanmaraş investment components No Investment name Scope Budget
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(million EUR) B-1 Kahramanmaraş Northern • Construction of a new landfill in Afşin. A composting facility 17.00 Districts Integrated Solid and collection and separation facility in landfill site. Two Waste Project transfer stations in Elbistan and Goeksun. • Provision of waste collection equipment (container and pick- up trucks). • Rehabilitation or closure of existing dumpsites. B-2 Kahramanmaraş (city centre) • Rehabilitation and construction of water distribution network 10.80 Drinking Water Project including: • Establishment of pressure zones and DMAs; introduction of SCADA systems, installation of flow meters and pressure reduce valves; • Rehabilitation of water reservoirs and pumping stations; • Construction of one new water reservoir. B-3 Kahramanmaraş (city centre) • Rehabilitation and construction work of sewerage network 25.00 Sewerage Project (400 km) • Construction of stormwater network (100 km) B-4 Ceyhan Basin Wastewater • Ekinözü WWTP and Collectors: 0.95 km of Ø400 Concrete 8.4 Treatment Plants Pipes, 1.1 km of Ø200 Concrete Pipes, 23 Manholes, 1 pumping station, 1 WWTP (for 12,350 people; in 2037 capacity 889 m3/day, 14,750 people in 2052 capacity 1,062 m3/day) • Çağlayancerit WWTP: 1 WWTP (for 15,000 people; in 2038 capacity 1,650 m3/day, 17 600 people in 2053 capacity 1,936 m3/day) • Andırın WWTP and Collectors: 4.23 km of Ø400 Concrete Pipes, 3.51 km of Ø200 Concrete Pipes, 163 Manholes, Pumping Station and 600 m Pressure Line (600 m), 1 WWTP • Goeksun WWTP and Collectors: 4.617 km of (Ø600) HDPE Pipes, 107 Manholes, 1 WWTP (for 25 000 people; in 2037 capacity 5 508 m3/day, 30 000 people in 2052 capacity 6480 m3/day) B-5 Elbistan Drinking Water • Rehabilitation of water distribution network (255 km) and 8.00 Network Project house connections (4128), Pressure lines (3 km), Construction of water reservoirs (6 new), 5 Pumping stations B-6 Elbistan Drinking Water • Construction of water transmission line (120 km) and 6 water 25.00 Transmission Line reservoirs (volumes b/w 100-2000 m3)
C.Kayseri Municipality
18. Kayseri context. The refugee population in Kayseri consists mainly of Syrians, Afghans and Iraqis. Most of the refugees are living in Melikgazi district. In 2018, Kayseri province had a total population of about 1,389,680 people out of which 79,758 (or 5.74 percent of the total population in Kayseri province) were SuTP’s. There are no refugee camps in Kayseri province50.
19. The existing WWTP (with a capacity of 110,000 m3/day) in Kayseri started operation in 2004 and was designed to
50 UNHCR Turkey: Syrian Refugee Camps and Provincial Breakdown of Syrian Refugees Registered in South East Turkey (January 2020): https://data2.unhcr.org/en/documents/details/73300 , accessed on January 15, 2020
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serve the central districts of Kayseri, namely Kocasinan and Melikgazi, until 2025. However, three more districts (Talas, Hacilar and Incesu) were connected to the WWTP which led to an additional population of 160,000. In addition, the increased population in the city center with refugees, the capacity of the WWTP became insufficient. In 2016, the average wastewater received to the WWTP was 163,200 m3/day51.
20. Kayseri Sub-Project. Under this proposed sub-project, the capacity of the existing WWTP will be increased and improved through the installation of screens, aeration tanks, and primary and secondary sedimentation tanks. The sludge dewatering unit will also be renewed by replacement of the existing belt filter press with decanters. Through the added units, the capacity of the WWTP is planned to increase up to 183,000 m3/day for a PE of 1.4 million. In addition, a solar sludge drying facility will be constructed. The expected beneficiaries are 1,330,500 people out of which 79,830 (or 6 percent of the total population) are SuTP’s.
21. The proposed investments in Kayseri are summarized as follows (Table 2.4):
Table 2.4: Kayseri province investment components No Investment name Scope Budget (million EUR) C-1 Extension of Kayseri • Extension of existing WWTP (2nd phase) and installation of solar sludge 25 Wastewater drying facility; replacement of existing belt filters with decanter units. Treatment Plant
D.Konya Municipality
22. Konya context. The refugee population in Konya consists mainly of Syrians and Afghans. In 2018, Konya province had a total population of about 2,205,60952 people out of which 109,124 (or 4.95 percent of the total population) were SuTP’s53. There are no refugee camps in Konya54, refugees are mainly living in the central districts of Konya. Since 2014, water supply and sanitation services for the metropolitan municipality of Konya are provided by Konya Water and Sewerage Administration General Directorate (KOSKİ). Due to high seasonal variations in the availability of water resources and the high NRW (57 percent)55, KOSKİ has developed the following investment project for Akşehir district.
23. Konya Sub-Project. The proposed Akşehir Water Supply Project will finance the construction of:
• 29 km of water transmission lines, • 97 km of distribution network including house connections, • three water reservoirs (3,000, 1,000 and 500 m3) and pressure reducing chambers.
24. Existing water distribution network was constructed in 1990 and the capacity of the system is already reached. Thus, the project aims to renew the existing water system for the city of Aksehir in order to provide healthier and sustainable water services to customers. In Aksehir, drinking water is currently supplied from groundwater wells.
51 According to PID for Kayseri. 52 As per the address-based census for 2018 53 Calculations based on PID for Konya and projected estimates for the year 2020. 54 UNHCR Turkey: Syrian Refugee Camps and Provincial Breakdown of Syrian Refugees Registered in South East Turkey (January 2020): https://data2.unhcr.org/en/documents/details/73300 , accessed on January 15, 2020 55 According to PID for Konya
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Through the project, spring waters in Gemen (15 lt/s), Sucikan (50 lt/s) and Ilica (20 lt/s) will be transmitted and distributed to Aksehir for drinking water purposes. The Project is expected to lead to a significant decrease in energy consumption as spring water will be transmitted by gravity. The total project beneficiaries are estimated at 134,524 people out of which 16,270 (or 12.1 percent of the total population) are SuTP’s56.
25. At appraisal stage, two further sub-projects in Konya metropolitan municipality were identified:
• Ilgin Wastewater Treatment Plant • Cumra Wastewater Treatment Plant
26. The proposed investments for Konya are summarized as follows (Table 2.5):
Table 2.5 Konya province investment components No Investment name Scope Budget (million EUR) D-1 Akşehir Water Supply • Construction of water transmission lines (29 km). 4.71 Project • Rehabilitation/construction of 3 water reservoirs (3000, and 500 m3) and installation of pressure reducing chambers construction of network pipelines (97 km) including house connections will be prioritized according to available budget. D-2 Ilgin Wastewater • Construction of Ilgin Wastewater Treatment Plant Project 3.85 Treatment Plant Project D-3 Cumra Wastewater • Construction of Cumra Wastewater Treatment Plant Project 5.38 Treatment Plant Project O Osmaniye Municipality
27. Osmaniye context. In 2018, the total population in Osmaniye province was 534,415 people out of which 51,160 (or 9.6 percent of the total population) are SuTP’s. There is one refugee camp, the Cevdetiye Container Camp, in the province of Osmaniye which hosts about 12,610 SuTP’s57.
28. The city center of Osmaniye municipality receives drinking water from three main sources, which are: Zorkun Springs (400 l/s; by gravity), Yenikoey Wells (360 l/s; by pump) and 7 groundwater wells (270 l/s; by pump). The design report indicates that the existing resources are only capable to meet water demand until 2026. For this reason, Osmaniye Municipality has contacted DSİ and 786 l/s water allocation from Aslantaş Dam is received.
29. The existing water distribution network has high NRW (56 percent) and real losses (49 percent) in the system58. There are no ‘as built drawings’ of the existing water distribution network available, hence, the Municipality receives around 200 system failure calls per month due to failure of pipes (mainly PCV, asbestos and cast-iron pipes exist) in the system or house connections. As there are no ‘as built’ drawings the site operations are carried as trial and error actions. Most of the cast iron pipes have corrosion problems and collapse. These issues extend the repair times and create secondary contamination risks to the system.
56 Calculations based on PID for Konya and projected estimates for the year 2020. 57 UNHCR Turkey: Syrian Refugee Camps and Provincial Breakdown of Syrian Refugees Registered in South East Turkey (January 2020): https://data2.unhcr.org/en/documents/details/73300 , accessed on January 15, 2020 58 According to PID for Osmaniye
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30. The existing wastewater system has a length of around 400 km and consists of concrete and reinforced concrete pipes with diameters ranging from 200 to 1000 mm. The wastewater collection network was mainly constructed in 1985 therefore it is aged, and the pipe material and connection type used are reported in the Project Identification Document (PID) as not suitable to the area specific soil characteristics. Due to the high groundwater level in the project area, most of the existing pipes are full of groundwater and soil granules brought by groundwater infiltration. The Municipality receives 250 failure calls monthly as a result of sediments causing pipe clogging or failures/collapses of the pipes. The municipality cleans annually 250 km of wastewater pipelines by vacuum trucks from sediments and clogging. These problems make operation of the system inefficient due to economic circumstances and staff capacity.
31. Osmaniye Sub-Project. The two proposed sub-projects aim at improving the existing water supply and sewerage systems in the city center of Osmaniye. The total project beneficiaries in the proposed project area are estimated at 334,298 people out of which 57,109 (or 17.1 percent of the total population) are SuTP’s59.
32. Osmaniye Centrum Drinking Water Project. Osmaniye drinking water project will focus on the distribution network and will include construction of approximately 598 km water distribution network (pipe diameters changing from 110 to 900 mm), 5 water reservoirs, pressure release valves, DMAs and auxiliary infrastructure. These activities seek to address critical water supply service constraints faced by the municipalities in delivering effective and efficient services, including: (a) frequent pipe breakage and subsequent contamination of water due to severe corrosion of existing pipes (cast iron, asbestos cement), and high pressure fluctuations – water utility records show about 200 calls per month, with about 30 percent of these related to the main network and 60 percent to customer connections; and (b) non-revenue water is very high at 56 percent, of which 49 percent are real losses.
33. Osmaniye Centrum Sewerage project. Osmaniye sewerage project aims renewal of 403 km of wastewater collection network. The existing collection network was mainly constructed in 1985 and is prone to deficiencies due to aging and connection types used at that time. The high groundwater level also creates problems such as high amount of infiltration to the pipes and entrance of soil granules to network, which creates additional costs for operation. It is stated that approximately 100 failure calls are received from customers due to failure and/or collapse of pipes.
34. The project is expected to lead to significant efficiency improvements for the operation of water distribution network and wastewater collection system for Osmaniye Municipality. The investments in the water distribution network will decrease energy consumption, water losses and non-revenue water. This will also allow the Municipality to meet water demand until water is received from Aslantaş dam. Also, failure calls received for both water and wastewater pipelines will be decreased. The improvement in wastewater collection network is also expected to reduce possible groundwater infiltration to the system thus may reduce the wastewater flow to the WWTP. The proposed investments for Osmaniye are summarized as follows (Table 2.6):
Table 2.6: Osmaniye investment components No Investment name Scope Budget
59 Calculations based on PID for Adana and projected estimates for the year 2020.
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(million EUR) E-1 Osmaniye (Centrum) Drinking Water Project • Construction of water distribution network (598 27.65 km; 110-900 mm) to be prioritized, 5 water reservoirs, pressure release valves, DMAs and auxiliary structures E -2 Osmaniye (Centrum) Sewerage Project • Wastewater collection network (403 km) will be 29.91 prioritized according to available budget.
Priority Water Supply and Sanitation Investments
35. Priority water and sanitation investments at neighborhood or settlement level in low income areas most affected by vulnerable SUTPS and host communities may range from facilities such as, inter alia, household water facilities, including taps and laundry facilities, and appropriate toilet facilities, which may be introduced semi-permanent solutions in informal settlements that can be relocated if desired. The following paragraphs conceptually describe one form of potential priority investments that have been used in other countries in similar situations where environmental infrastructure services are urgently required in informal settlings. In this case, priority investments are required to address kay concerns such as risks to public health, high levels of environmental degradation and pollution due to grey water run-off or lack of toilets, and social risks to the most vulnerable, including women and children who are often most impacted by lack of access to safe water and sanitation services.
36. Non-permanent or movable Community Ablution Blocks (CABs) for informal settlements. CABs comprise blocks of water and sanitation facilities such as toilets and showers that can be made out of lower cost but durable materials such as refurbished shipping containers to provide services in informal low-income settlements. Various CAB models have used successfully elsewhere in similar situations in countries such as South Africa. The project will support the development of a conceptual design for CABs made from locally available facilities, to be piloted in selected low-income settlements in collaboration with municipalities.
37. Required considerations to implement CABs shall include: (i) land availability to implement a CAB project, with landownership needs to be formally agreed on with municipalities; (ii) space consideration; ideally sites or plots must be greater than 250 m2; (iii) ideally the average slope of the ground must be less than 1:3 for the ease of installation; (iv) environmental considerations, including connection to the main sewer and further treatment etc.; and (v) site having a basic level of water supply. Containers may be designed or tailor-made for the local context and may be equipped with water meters to monitor. They should also be designed in a gender sensitive manner with separated male and female units in different blocks, and fitted with other gender appropriate facilities such as menstrual hygiene facilities for females, facilities for disabled people, and women with small children.
38. Development and introduction of CABs will require engagement of both municipalities and selected recipient communities with vulnerable SUTP and host communities, to be identified by the municipalities, initially on a pilot scale with potential to scale up the model. Community members will continue to be involved in operating and maintenance of the CABs to ensure their proper use and management. Management of such facilities may provide employment / income generating activities for local community members, including women. However, appropriate design of the operation and maintenance arrangements will be determined in collaboration with the respective municipalities and communities during development of the facilities. Below is an example of a conceptual layout of CABs.
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ANNEX 3: Economic and Financial Analysis
Rationale for Public Sector Investment
1. The rationale for public sector financing under the proposed project is mainly linked to the important social and political goals of the Government of Turkey and the EU to address the impacts of the Syrian refugee crisis in the most affected parts of the country. Direct fiscal impact depends on what the state would have done in the absence of the project financing for the subprojects. In this case the fiscal savings are direct and significant given cost savings arising from the reduced state and local governments financing to provide certain services, owing to project investments. Limited capacity to attract private sector financing by the municipalities in the targeted investment areas due to the overall perceived risks, necessitates public sector financing.
Rationale for Bank’s Involvement
2. The World Bank has been a long-term partner of Turkey in the water and sanitation, and water resources management sectors. In this instance, the Bank’s involvement occurs at the backdrop of severe service pressures on the municipal services due to the refugee situation, providing contingent funding for critical works to preserve adequate service provision. In this context the knowledge and global experiences of the Bank are highly valuable to the GoT. The Bank has substantial global experience in supporting programs and managing policy dialogue to improve service delivery in areas affected by refugees. Bank support has been provided in form of financial support, Advisory Services and Analytics (ASA) services, and operational support towards implementation of multi-donor funded programs. Globally, the Bank has supported the preparation of needs assessments for refugee host countries, AAA on affected communities, and implementation of activities for provision and expansion of basic services in various sectors to accommodate the increased pressure on existing systems due to refugees. The Bank has also used its convening power in the past to bring together different stakeholders, including municipalities affected by refugees and others to share lessons across sectors.
Cost Benefit Analysis
3. The financial and economic analysis focus on the project’s subcomponents with specific investments that materialize direct or indirect economic benefits and costs. The economic viability of subprojects will assess the value from project infrastructure investments without considering sub-project’s benefits from technical assistance aimed at building capacity or improving knowledge and technical expertise.
Methodology
4. Costs and benefits are estimated at constant prices for 2018. All benefits and costs were appraised measuring their flow of costs and benefits for the lifetime of the sub-projects, ranging from 25 to 33 years. Costs and benefits were expressed in constant prices as of 2018 at an exchange rate of 5.4852 TL per Euro. The discount recommended by the World Bank guideline is 6 percent, and the analysis used a higher discount rate of 10 percent to weigh in economic risks in discounting flows to present values. The main approach used for this economic analysis is to compare the costs and benefits with and without project scenarios using European Commission CBA Guide.
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A) Adana Sub-projects
5. Kozan Drinking Water and Transmission Line Project: This activity includes the renewal of water network pipes including house connections, construction of 28 km gravity and pressure transmission lines, pump stations, reservoirs, collection tanks and auxiliary structures. These investments will ensure effective operation of the whole water supply system, contribute to the reduction of non-revenue water to regulation limits and increase service delivery quality levels.
6. A Cost Benefit Analysis (CBA) was carried out as part of the Feasibility Study in line with the Guide to Cost- Benefit Analysis of Investment Projects, EC Directorate General Regional Policy, 2014. This reflected an ENPV of EUR1.9 million and EIRR of 11.0 percent. The financial analysis resulted in a FRR/C of -3.29 percent and a FRR/K of 18.36 percent. The social affordability analysis showed that no affordability constraints will be faced throughout the analysis period as the full cost recovery tariffs (EUR 0.96/m3) are below maximum affordable tariff which is set at 2.5 percent of median household income equating to EUR 1.05/m3 (both figures are excluding VAT).
7. Sensitivity analysis has been carried to see the impact of the variations of the critical variables including investment, personnel and power costs as well as health benefits on the economic performance of the project. Accordingly, 1 percent change in investment costs and health benefits led to a change above 1 percent in the ENPV in absolute terms at -1.98 percent and 2.41 percent respectively.
8. Proposed Kozan Drinking Water Project will significantly contribute to the reduction of non-revenue water (app. 61 percent) to the Regulation limits and provide benefits for the efficient operation of the whole network afterwards. Pınargözü Transmission Line Project will ensure safe gravity water supply to District centrum in the short term. Both investments will increase service delivery quality levels of the consumers, which suffer from frequent water interruptions and low pressure.
9. Yedigöze Drinking Water Transmission Line and Yedigöze Treatment Plant Project will serve 141 settlements of Adana city. These settlements include 4 sub-provinces (Kozan, İmamoğlu, Ceyhan and Yumurtalık districts) and 137 surrounding neighborhoods on the route of the transmission line.
10. Specific objectives of these two proposed projects are; Construction of a treatment plant with a capacity of 115K m3/day introducing a conventional treatment process including coagulation, flocculation, filtering and disinfection, construction of 35.4 km ductile iron transmission line with auxiliary structures (washout and air relief valve chambers, etc.). Therefore, lack of safe water sources problem for 4 Sub-provinces and 137 neighborhoods (total 141 settlements) shall be solved. It will eliminate well usage in these settlements and so contribute reduction of the energy costs. Improvement of the underground water levels shall be achieved which also suffer from high withdrawal rates caused from irrigation and water supply activities.
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Graph 3.1 Yedigöze project unit costs
11. The financial analysis resulted in an FNPV of EUR -23.1 million an economic analysis was performed taking into account pollution reduction benefits, health benefits, GHG emission savings and resource cost savings, resulting in ENPV of EUR -24.5. million and an EIRR of 6.4 percent.
B) Kahramanmaras Sub-projects
12. 12.Construction of Andırın and Göksun (Ceyhan Basin) WWTPs is developed as part of the plan to prevent pollution in Ceyhan Basin and alleviate the extra pressure due to the increased population as a result of the Syrian refugee population influx on the infrastructure services in the province.
13. WTP (Willingness to Pay) is used to estimate shadow price of project output, or in the absence of WTP data, the commonly accepted practice is to take a conservative assumption for the monetization of the project benefits due to uncertainties of the estimation and also to calculate avoided costs for users to get this service from an alternative source. The feasibility classified the benefits of Kahramanmaras WWTP Project into 3 categories detailed below:
• Monetarization of project benefits: A per capita benefit value estimated by the consultants has been set over the reference period of the project yielding an economic benefit of EUR 29.671.122. • Disposable income for new employment: According to the TURKSTAT data, Marginal Propensity to Save in January 2019 in Turkey is 19.40 percent which means Marginal Propensity to Consume is 80,60
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percent. The direct economic benefit is calculated as EUR 1.457.517 over the operational period (2022- 2052) of the project. • Avoided Cost of Opening Septic Wells: The connection ratio to sewer system of Kahramanmaras households is 80 percent which, by assumption, means that 20 percent of the households should open a septic tank to get rid of wastewater they generate. At the first year of operation period the consultant assumes that 20 percent of not connected households avoid investing in septic tanks for the wastewater generated by themselves which in return if the cost of opening a septic tank is assumed to be EUR 500 per household then the total saving will be calculated as EUR 9.500 in the first year, 2022. For the following years of project reference period, 20 percent of additional subscribers will do the same saving and at the end of project’s reference period, total savings from avoided costs of opening sewer wells become EUR 382.100.
14. The Economic NPV of the Project is EUR 170.145,97 and Economic IRR is 10.43 percent which is greater than the social discount rate of 10 percent which is used in economic analysis. Benefit-Cost ratio is calculated as 1,02 at 10 percent of social discount rate.
Table 3.1: Kahramanmaras Andırın and Göksun WWTP
Economic Benefit, NPV and IRR Calculation EUR
NPV of Monetization of Direct Benefit (Instead of WTP) Per Inhabitants 6.851.827
NPV of Avoided Cost of Opening Septic Wells 84.817
NPV of Disposable Income Addition 368.324
NPV of Total Economic Benefits 7.304.967
NPV of Investments 4.061.870
NPV of O&M and Replacement Costs 3.072.952
NPV of Total Economic Costs 7.134.821
Economic NPV (EUR) 170.145,97
Economic IRR 10,43%
Benefit/Cost Ratio 1,02
15. The Project will contribute to the prevention of pollution in Ceyhan River Basin comprising several water resources. The project will lead to increasing the overall effectiveness and efficiency of wastewater management in the region. The health standards of the public will be improved. Project is expected to have a positive impact on the environment by protecting natural resources.
16. Kahramanmaraş Northern Districts Integrated Solid Waste Management (ISWM) System Project intends to upgrade the existing waste management practices through the implementation and operation of a sanitary landfill incorporating optimal routing to minimize transport and emissions, and safe recovery and disposal of
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waste with environmental controls for the collection and treatment of leachate and landfill gas. ISWM system project is justified based on financial and economic returns through generation of benefits by closing the existing non-sanitary landfill and switching to a coordinated regional system with collection, separation and composting facilities.
17. In calculating the tariffs for the future ISWM system, the average tariff has been set to comply with the polluter pays principle within the limit of household affordability. The maximum affordable tariff has been defined as 1 percent of disposable income for an average household. Evaluation period has been taken as 2017- 2047 coinciding with the bulk of the planned operational lifetime of the landfill – the largest component of the proposed project.
Table3. 2: Kahramanmaras ISWM Project
Value Financial Analysis Discounted (NPV)
Financial discount rate (%), real 10% Total investment cost (in EUR, discounted) (*) 21,407,525 Residual value (in EUR, not discounted) (**) 2,909,431 Residual value (in EUR, discounted) (**) 166,735 Revenues (in EUR, discounted) (**) 27,941,825 Operating costs (in euro, discounted) (**) 22,809,183 Net revenue (in euro, discounted) = (7) - (8) + (6) 5,299,377
18. The social discount rate of 10 percent is assumed when considering the economic welfare implications of the proposed investment for the provision of ISWM services for society in the Kahramanmaraş Metropolitan area. In order to convert the project costs from financial costs – both investment and operating costs – based on market prices to economic costs based on the impacts to society, the following steps were made: • Taxes and subsidies are removed from the cost estimates. Transfer payments (such as social security taxes) are also removed from cost estimates (both investment and operating costs) • Costs based on domestic prices are converted to be comparable with costs based on international prices as internationally traded goods are assumed to reflect actual economic value, whereas domestic prices can be distorted by market imperfections.
Table 3.3 Kahramanmaras ISWM Project Economic Cost Benefit Analysis Values
1. Social discount rate (%) 10.0%
2. Economic rate of return (%) 11.5%
3. Economic NPV (in Euro) 3,832,084
4. Benefit-cost ratio 1.15
19. Due to collection and (future) utilization of landfill gas, the negative effects of greenhouse gases will be
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reduced. Using the World Bank GHG accounting tool Climate Action for Urban Sustainability (CURB), it was estimated that the project avoided about 63,962 tCO2 of being emitted into the atmosphere over the next 30 years. Using data on the waste production, it was found that the GHG emission reduction was positive because of the shift from open dumping to management of waste in a landfill with landfill gas capture. Emissions decreased because of landfill gas capture, which prevents the methane generated by waste within landfills from entering the environment. Using the market price of EUR 24.6/tCO2, the social benefits of the avoided GHG are worth about EUR 1.6 million for the entire project life.
Table 3.4 Methane Emissions Methane emissions impact calculation* 2017 Project Life 30 years With action For Managed landfill (tons CO2e)= A 19.189 Baseline For Unmanaged landfill - less than 5m deep (tons CO2e)= B 21.321 Avoided methane emissions (CO2e)= B-A 2.132 63.962 Avoided GHG Monetary Benefits (EUR)** 52.470 1.574.107
*World Bank Climate Action for Urban Sustainability GHG Accounting Tool **Price data from https://origin.markets.businessinsider.com/commodities/co2-european-emission-allowances
C) Kayseri Sub-project
20. Kayseri WWTP Capacity Extension Project
21. Kayseri WWTP project is designed to meet the needs of the city with increasing population and expanding industrial facilities. Year of 2025 is selected as target year as of when all the wastewater will be discharged after being treated. Kayseri has a reported Syrian guest percentile at 4.3 percent of its local population. Over its lifetime of 30 years, project will have a FNPV of EUR3,545,000 with an FIRR of 12.2 percent.
22. The project will yield an E-NPV of 10,918,408 with an ERR of 25.6 percent and has a cost/benefit ratio calculated as 1.62. According to the World Bank Water GP GHG Calculation Model, project’s gross emissions were 369,064 tons CO2e, net emissions were 118,894 tons CO2e and net average annual emissions were - 3,963 tons CO2e.
E) Osmaniye Sub-project
23. Osmaniye (Centrum) Drinking Water and Sewerage Network Projects
24. Osmaniye needs to enlarge its sewerage and drinking water networks to meet the legislative requirements for the collection of urban wastewaters and for the supply of good quality water. In accordance with Turkey’s physical planning guidelines for water and wastewater infrastructure, the Osmaniye wastewater collection system is designed using a 35-year horizon in order to respond to the needs of increasing population with an over 20 percent ratio of Syrian guests.
25. The project will produce a negative FNPV of -EUR10.6 million with an FIRR of 7.5 percent. Economic analysis yields ENPV of EUR 65,019,026 with an ERR of 23.82 percent and benefit/cost ratio of 9.17 thus justifying the project on economic basis. Using World Bank Water GP GHG Calculation Model, project’s gross emissions were 244,082 tons CO2e, net emissions were 990,958 tons CO2e and net average annual emissions were -
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28,299 tons CO2e.
Financial Estimates of Utilities and Municipality
26. Financial budget results for the last three years covering 2016-2018 and estimates for the next three years of the water utilities and for Adana, Kahramanmaras and Kayseri together with Municipality of Osmaniye are provided below. These constitute a baseline assessment of their financial position reflecting level of financial sustainability. Based on their past budget results all three utilities have generated positive current balances enabling them to finance part of their capital expenditure after debt interest payment. Municipality of Osmaniye has also been reporting positive current balances though with narrow margins reflecting its relatively limited revenue potential due to its non-metropolitan status.
27. For three-year projections operating revenue from water services and other tax related central government transfers are assumed to increase at least by consumer inflation rate with some real tariff adjustments in 2020 and 2021 above expected inflation. These would amount to a combined tariff increase of 30 percent over the three-year period still enabling the affordability rates remaining below 2.5 percent of median household income.
Table 3.5 Adana SKI Budget Results Adana Water and Sewerage Entity Budget Results (TRY/EUR ave. rate) 0,2691 0,2211 0,1652 0,1652 0,1652 0,1652 (EURm) 2016 2017 2018 2019F 2020F 2021F Water and Other Tariffs 91,9 93,3 81,6 91,4 105,1 113,5 Other Revenues 0,0 0,0 2,4 2,7 3,1 3,4 Transfers Grants Received 23,0 21,5 16,7 18,7 21,6 23,3 Total revenues 114,9 114,7 100,8 112,9 129,8 140,2
Personnel Expenditure -20,0 -17,4 -14,0 -15,6 -18,0 -19,4
Other operating expenditure -73,8 -74,6 -66,4 -74,4 -85,5 -92,3
Operating balance 21,1 22,7 20,5 22,9 26,3 28,5
Interest paid -1,5 -1,1 -4,7 -5,5 -6 -7,5
Current balance 19,6 21,6 15,7 17,4 20,3 21,0 Capital Expenditure -20,3 -35,8 -40,3 -35 -58 -65 Surplus/(Deficit) Before Debt -0,7 -14,2 -24,6 -17,6 -37,7 -44,0 New Borrowing 0,0 0,0 31,0 35 42 30 Debt repayment 0,0 0,0 -6,1 -8 -9,5 8
Overall results for the year 19,6 21,6 40,6 44,4 52,8 59,0 Debt (EUR equivalent) 44,3 47,7 58,7 85 110 130
Source: Budget results and consultant calculations
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Table 3.6 Kahramanmaras SKI Budget Results Kahramanmaras Water and Sewerage Entity Budget Results (TRY/EUR ave.rate) 0,2691 0,2211 0,1652 0,1652 0,1652 0,1652 (EURm) 2016 2017 2018 2019F 2020F 2021F Water and Other Tariffs 27,1 26,7 21,9 24,5 28,2 30,5 Other Revenues 7,4 9,6 5,1 5,7 6,6 7,1 Transfers Grants Received 10,3 9,7 8,1 9,1 10,5 11,3 Total revenues 44,8 46,0 35,1 39,4 45,3 48,9
Personnel Expenditure -7,6 -7,1 -5,2 -5,8 -6,7 -7,2
Other operating expenditure -18,7 -20,1 -17,4 -19,5 -22,5 -24,3
Operating balance 18,5 18,7 12,5 14,0 16,1 17,4
Interest paid -1,7 -1,1 -1,2 -2,0 -3,0 -5,0
Current balance 16,8 17,6 11,3 12,0 13,1 12,4 Capital Expenditure -20,8 -23,7 -26,1 -30,8 -31,5 -35,2 Surplus/(Deficit) Before Debt -4,1 -6,1 -14,9 -18,9 -18,4 -22,9 New Borrowing 0,0 12,0 29,5 22,0 34,0 27,0 Debt repayment -2,8 -9,4 -11,4 -14,0 -16,4 -17,0
Overall results for the year 14,0 20,2 29,3 20,0 30,7 22,4 Debt (EUR equivalent) 24,5 23,2 24,6 35,1 52,7 62,7
Source: Budget results and consultant calculations
Table 3.7 Kayiseri SKI Budget Results Kayseri Water and Sewerage Entity Budget Results 0,2691 0,2211 0,1652 (EURm) 2016 2017 2018 2019F 2020F 2021F Water and Other Tariffs 47,3 44,1 38,2 42,8 49,2 53,2 Other Revenues 1,5 1,2 1,4 1,6 1,8 2,0 Transfers Grants Received 14,2 14,3 11,8 13,2 15,1 16,4 Total revenues 63,0 59,6 51,4 57,6 66,2 71,5
Personnel Expenditure -11,6 -9,6 -8,0 -9,0 -10,3 -11,2
Other operating expenditure -32,9 -29,5 -24,0 -26,9 -31,0 -33,4
Operating balance 18,4 20,4 19,3 21,6 24,9 26,9
Interest paid -1,5 -2,6 -2,1 -2,4 -3 -3,2
Current balance 16,9 17,9 17,3 19,2 21,9 23,7 Capital Expenditure -24,4 -25,7 -23,6 -27,8 -28,4 -31,8 Surplus/(Deficit) Before Debt -7,5 -7,8 -6,3 -8,6 -6,5 -8,1 New Borrowing 31,4 31,1 45,3 35 42,5 28 Debt repayment -6,0 -7,4 -9,8 -10 -12 -14 Before Debt Overall results for the year 17,9 15,9 29,2 16,4 24,0 5,9 Debt (EUR equivalent) 51,6 51,1 45,2 70 100 114
Source: Budget results and consultant calculations
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Table 3.8 Osmaniye SKI Budget Results Municipality of Osmaniye Budget Realizations ACTUAL ACTUAL ACTUAL PROJECT PROJECT PROJECT (EUR million) 2016 2017 2018 2019 2020 2021 TRY/EUR 0,2691 0,2211 0,1652 0,1652 0,1652 0,1652 Taxes 4,1 3,4 4,1 4,5 5,1 5,7 Transfers received 29,6 29,1 34,0 36,7 41,1 46,0 Fees, fines and other operating revenue 7,8 7,1 6,8 7,8 8,7 9,4 Operating revenue 41,5 39,5 44,9 49,0 54,9 61,1 Operating expenditure -37,5 -32,6 -35,8 -38,7 -43,4 -48,6 Operating balance 4,0 7,0 9,0 10,3 11,5 12,6 Operating Margin 10% 18% 20% 21% 21% 21% Financial revenue 0,6 0,6 0,4 0,4 0,4 0,4 Interest paid -6,6 -4,0 -8,3 -6,6 -5,3 -5,7 Current balance - 1,9 3,5 1,1 4,1 6,7 7,3 Capital revenue 0,8 5,3 0,1 0,2 1,8 2,7 Capital expenditure -7,2 -24,5 -17,7 -8,8 -14,4 -24,3 Capital balance -6,4 -19,2 -17,6 -8,6 -12,6 -21,7 Surplus (deficit) before debt variation -8,4 -15,7 -16,5 -4,5 -5,9 -14,4
28. Further detailed financial management assessments and creditworthiness analysis have been carried out for sub-borrowers Adana, Kahramanmaras and Kayseri water utilities along with municipalities of Kahramanmaras Metropolitan and Osmaniye. These have covered qualitative financial management areas as well as fiscal performance, expenditure coverage and indebtedness for the last five years and a projection period of five years.
29. The capacity of Adana SKI to clear its debts using the operating surplus is 1.1 years in 2014 and increased to 2.2 years in 2018 with an average of 2 years over the period from 2014 to 2018. The number of years for the 2019 – 2021 budget period is expected to be less than a year. The capacity of Kahramanmaras SKI to clear its debts using the operating surplus is 3.5 years in 2014 and decreased to 0.9 years in 2018 with an average of 1.2 years. The number of years for the 2019 – 2021 budget period is expected to be 1.5 years. The capacity of Kayseri SKI to clear its debts using the operating surplus is 1.4 years in 2014 and increased to 2.3 years in 2018 with an average of 2.1 years over the period from 2014 to 2018. The number of years for the 2019 – 2021 budget period is expected to be 1.96 on the average.
30. Financial projections for the water utilities and municipalities have indicated that these entities will incur additional debt in the project implementation period with debt outstanding to current revenue peaking at 32 percent for Adana SKI, 45 percent for Kahramanmaras SKI, and 21 percent for Kayseri SKI. For the municipalities debt service burden will increase and self-funding ability from current balance will be stretched with debt service to current revenue reaching 43 percent for Kahramanmaras MM and 42 percent for Osmaniye. Sub-borrowers are forecast to maintain ability to meet financial commitments nonetheless remain exposed to adverse economic conditions.
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Table 3.9: Summary Economic Analysis Results
Economic NPV of Total NPV of Total E-IRR (%) (EUR) NPV Costs Benefits
Adana Kozan Drinking Water and 1,913,523 22,009,027 23,922,550 11.0 Transmission Line
Adana Yedigöze Drinking Water -24,497,839 44,492,053 19,994,214 6.4 Transmission and WWTP Kahramanmaras Ceyhan Basin (Andırın&Goksun) WWTP 170,146 7,134,821 7,304,967 10.4
Kahramanmaras Northern Districts 3,832,084 26,118,978 29,951,062 11.5 Integrated Solid Waste Management
Kayseri WWTP Expansion 10,918,408 20,369,926 30,955,334 25.6
Osmaniye Water and Sewerage Network 65,019,026 7,956,038 72,975,064 23.8
Conclusion
31. The influx of Syrian guests to several Municipalities of Turkey over the past years has led to an increase in infrastructural requirements caused by increasing water demands, wastewater generation and solid waste generation. This has burdened Municipalities’ ability to provide effective level of service both to their local residents, as well as to the guest population.
32. The entire project comprising various sub-projects by different implementing authorities will not produce commercially profitable results in each instance. Nonetheless, it will create viable results underpinned by net economic benefits to be accrued in total. With the implementation of the proposed projects, the capacity of the water entities (SKI) and their municipalities will be strengthened in terms of infrastructure and technical capacities, enabling them to better respond to the significant increase in demands for municipal services. Through the technical assistance components, SKIs are also expected to prepare Performance Improvement Action Plans, which will, among other things focus on improving their performance efficiency and financial viability through appropriate actions targeting results such as improved revenue collection, cost reduction, non-revenue water reduction, etc.
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ANNEX 4: Procurement
1. Applicable regulations. The World Bank Procurement Regulations for IPF Borrowers – July 2016 revised in November 2017 and August 2018 (“Procurement Regulations”) will apply to the proposed Project. A General Procurement Notice will be published on the World Bank’s external website and United Nations Development Business online immediately after the project negotiations.
2. Anti-Corruption Guidelines. The World Bank's “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”, dated October 15, 2006 and revised in January 2011 and as of July 1, 2016 (Anti-Corruption Guidelines)” will apply to the proposed Project.
3. Project Procurement Strategy for Development (PPSD). The Procurement Regulations requires the Borrower to develop a PPSD for the Project. Since ILBANK and targeted municipalities are considered urgent need of assistance described under paragraph 12 of OP10.00, a simplified Project Procurement Strategy for Development (PPSD) a has been prepared by ILBANK. The draft PPSD describes how procurement activities will support project operations for the achievement of the PDOs and deliver value for money. The PPSD is linked to the overall project implementation strategy by ensuring proper sequencing of procurement activities. It provides information on institutional arrangements for procurement, roles and responsibilities, appropriate procurement methods, procurement due- diligence, and other requirements needed for carrying out procurement. The PPSD also includes a detailed description of the procurement capacity needed by the executing agencies for carrying out procurement with specific focus on managing contract implementation, governance structure, and accountability framework. In addition, PPSD is supported with a market research and analysis assesses market-related risks and opportunities that will affect the preferred procurement approach to market strategy.
4. PPSD confirmed that the selection of “Design Review and Supervision Consultant(s)” are located as “strategic security” procurement in the supply positioning matrix. It is envisaged that these consultants will support ILBANK (PMU)/municipalities for the preparation of the bidding documents for the infrastructure investments, and therefore, consultants’ timely input is very critical for the initiation of the relevant procurements planned in the procurement plan. Considering the limited time for the implementation project and urgent need of the services, PPSD proposed to use “consultant’s qualification-based selection” method in the procurement of the six consultant’s contracts in line with the guidance on fit-for-purpose principle. Accordingly, use of higher thresholds proposed for the “consultant’s qualification-based selection” method. It was envisaged that the proposed approach will accelerate the selection of “Design Review and Supervision Consultant(s)” and will support to deliver the project development objectives. The selected consultant will also provide services to relevant municipalities/utilities for the quality assurance of the works and timely completion on the contracts within their original contract prices.
5. In the selection of six “Design Review and Supervision Contract(s)”, a streamlined procedure of single simultaneous international advertisement has been foreseen to collect the interests of the consultants. The firms with best qualifications and relevant experience determined, and based on their capacity and interest, eligible firms will be invited to submit their technical and financial proposals for the relevant contracts. In order to mitigate risks attributable to the perception of integrity matters, PPSD proposed ILBANK to engage independent Probity Assurance Providers to be present during the contract negotiation stages of the relevant contracts.
6. PPSD discussed that contracting of individuals in accordance with the Procurement Regulations will give flexibility in decision making to the project implementation teams in ILBANK and in the beneficiary municipalities in addition to
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maintaining uniformity in the followed selection procedures under the project. Therefore, PPSD proposed to hire the individual experts required for ILBANK PMU and municipal project implementation units in accordance with the individual consultant selection procedures as specified in the Procurement Regulations. These include but not limited to Procurement Specialist, Contract Management Consultant, Financial Management Specialist, Environmental Specialist, Social Specialist, Monitoring and Evaluation Expert and Communication Specialist.
7. The PPSD further analyzed the risks against the size of the proposed infrastructure contracts and thus all works procurements were positioned as “strategic critical” in the supply positioning matrix. And thus, the procurements of these contracts were packaged carefully considering the outcome of the market sounding i.e. availability of the capable contractors in the market who may respond to the ILBANK needs. As a conclusion, PPSD proposed to use National Procurement Procedures as specified in the Procurement Regulations by increasing the thresholds normally used in Turkey for similar contracts. The market sounding concluded that there are more than 50 national firms in each of the water, waste-water and solid waste sectors who may be qualified alone or in association with others for the proposed contracts. Also, it has been observed in the procurements of Bank financed MSP-I, MSP-II and SCP projects that the interest of the foreign bidders was very limited especially in city water and wastewater network construction works.
8. Procurement Plan and Procurement Tracking. The Procurement Regulations require the Borrower to use the Bank’s Systematic Tracking of Exchanges in Procurement (STEP) online procurement tracking tool to prepare, clear and update its procurement plans, and conduct all procurement transactions. ILBANK will create the procurement plan through STEP prior to initiating any procurement. The PPSD and the underlying Procurement Plan will be updated at least annually or as required to reflect actual project implementation needs. Only ILBANK will be given STEP access in the Project portal to safeguard confidentiality of the contract information recorded by different municipalities/utilities. All the procurement related complaints will be recorded in the STEP complaint module by ILBANK.
9. The contracts agreed by the Bank for financing and included in the approved procurement plan are listed in Table 4.1 below:
Table 4.1: Contracts Agreed by the Bank
Estimated
Estimated Contract Estimated Activity Reference Market Contract Completion Amount Description No. Approach Signing Date (including
Method (in EUR) (*)
Category Date defects liability
Procurement Procurement Procurement Funding Source Funding ReviewMethod period)
Construction of Open -
Kozan İmamoğlu National RFB – Single IBRD Yedigöze Water ADANA-W1 Works Procurement 21,850,000 4-Jan-21 20-Dec-23 Stage Loan Post Transmission Procedure Line (NPP) Open -
Construction of National RFB – Single IBRD Yedigöze Water ADANA-W2 Works Procurement 13,150,000 1-Feb-21 17-Jan-24
Stage Loan Post Treatment Plant Procedure (NPP)
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Estimated
Estimated Contract Estimated Activity Reference Market Contract Completion Amount Description No. Approach Signing Date (including
Method (in EUR) (*)
Category Date defects liability
Procurement Procurement Procurement Funding Source Funding ReviewMethod period) Construction of Open - Kozan Water
National Network Project RFB – Single ADANA-W3 Works Procurement 28,070,000 EU Grant 1-Mar-21 14-Feb-24 and Pınargözü Stage Post Procedure Transmission (NPP) Line Construction of Open - Kahramanmaraş
National Northern RFB – Single KMARAS-W1 Works Procurement 14,000,000 EU Grant 7-Feb-21 19-Sep-24 Districts Stage Post Procedure Integrated Solid (NPP) Waste Project Open -
Construction of National RFB – Single Elbistan Water KMARAS-W2 Works Procurement 8,000,000 EU Grant 14-Jul-21 25-Dec-24
Stage Post Network Project Procedure (NPP) Open - Construction of
National Elbistan Water RFB – Single IBRD KMARAS-W3 Works Procurement 25,000,000 15-May-21 26-Sep-24 Transmission Stage Loan Post Procedure Line (NPP) Kahramanmaraş (Centrum) Water Supply and IBRD Sewerage and 17,000,000 Loan Stormwater Open - Project - West
National Part (Lot 1) RFB – Single KMARAS-W4 Works Procurement 7-Feb-21 23-Jan-24 Kahramanmaraş Stage Post Procedure (Centrum) Water (NPP) Supply and Sewerage and 18,800,000 EU Grant Stormwater Project - East Part (Lot 2) Construction of Open - Ceyhan Basin
National Wastewater RFB – Single IBRD KMARAS-W5 Works Procurement 5,500,000 7-Mar-21 25-Feb-23 Treatment Plants Stage Loan Post Procedure (Goksun & (NPP) Ekinozu) Construction of Open - Ceyhan Basin
National Wastewater RFB – Single KMARAS-W6 Works Procurement 2,900,000 EU Grant 7-Mar-21 25-Feb-23 Treatment Plants Stage Post Procedure (Caglayancerit & (NPP) Andirin) Construction of Open - Kayseri RFB – Single National KAYSERİ-W1 Works 12,500,000 EU Grant 12-Jul-21 26-Jun-24 Wastewater Stage Procurement Post Treatment Plant Procedure
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Estimated
Estimated Contract Estimated Activity Reference Market Contract Completion Amount Description No. Approach Signing Date (including
Method (in EUR) (*)
Category Date defects liability
Procurement Procurement Procurement Funding Source Funding ReviewMethod period) (Phase 1) (Lot 1) (NPP)
Construction of Kayseri IBRD Wastewater 12,500,000 Loan Treatment Plant (Phase 2) (Lot 2) Open -
Construction of National RFB – Single Akşehir Water KONYA-W1 Works Procurement 4,710,000 EU Grant 4-Apr-21 25-Mar-23
Stage Post Supply Project Procedure (NPP) Open -
Construction of National RFB – Single Ilgin Wastewater KONYA-W2 Works Procurement 3,900,000 EU Grant 4-Apr-21 19-Mar-24
Stage Post Treatment Plant Procedure (NPP) Open - Construction of
National Cumra RFB – Single KONYA-W3 Works Procurement 4,560,000 EU Grant 4-Apr-21 19-Mar-24 Wastewater Stage Post Procedure Treatment Plant (NPP) Construction of Osmaniye (Centrum) Water Supply and IBRD 27,650,000 Sewerage and Loan Stormwater Open - Project - West
National Part (Lot 1) OSMANİYE- RFB – Single Works Procurement 6-Mar-21 23-Aug-23 Construction of W1 Stage Post Procedure Osmaniye (NPP) (Centrum) Water Supply and 29,910,000 EU Grant Sewerage and Stormwater Project - East Part (Lot 2) Minor Works for Incidental Infrastructure Investments
(Mobile toilets, 1,000,000 EU Grant small water and MW 1, 2…. Works RFQ National TBD TBD Post sewerage network/s, septic tanks and etc.) (Multiple Contracts)
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Estimated
Estimated Contract Estimated Activity Reference Market Contract Completion Amount Description No. Approach Signing Date (including
Method (in EUR) (*)
Category Date defects liability
Procurement Procurement Procurement Funding Source Funding ReviewMethod period) Kahramanmaraş Open - Northern
National Districts RFB – Single KMARAS-G1 Goods Procurement 2,000,000 EU Grant 14-Jul-21 12-Oct-21 Integrated Solid Stage Post Procedure Waste Project - (NPP) Vehicle Supply Kahramanmaraş Open - Northern
National Districts RFB – Single KMARAS-G2 Goods Procurement 1,000,000 EU Grant 14-Jul-21 12-Oct-21 Integrated Solid Stage Post Procedure Waste Project - (NPP) Container Supply Procurement of Video Conference
System/s for IBRD 1,325,000 15-Sep-20 9-Nov-21 ILBANK HQs and ILBANK G1 Goods RFQ National Loan Post Regional Directorates (Multiple Contracts) Review of Existing Designs, Preparation of Bidding ADANA-C1 2,000,000 13-Jul-20 23-Feb-24 Documents and Construction Supervision Services Review of Existing Designs, Preparation of Bidding KMARAS-C1 2,250,000 3-Aug-20 10-Dec-24 Documents and Construction Supervision Services IBRD CS CQS International Review of Loan Post Existing Designs, Preparation of Bidding KMARAS-C2 1,800,000 3-Aug-20 15-Jan-24 Documents and Construction Supervision Services Review of Existing Designs, Preparation of Bidding KAY-C1 1,450,000 3-Aug-20 10-Dec-24 Documents and Construction Supervision Services
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Estimated
Estimated Contract Estimated Activity Reference Market Contract Completion Amount Description No. Approach Signing Date (including
Method (in EUR) (*)
Category Date defects liability
Procurement Procurement Procurement Funding Source Funding ReviewMethod period) Review of Existing Designs, Preparation of Bidding KON-C1 1,000,000 5-Oct-20 18-Mar-24 Documents and Construction Supervision Services Review of Existing Designs, Preparation of Bidding OSMANİYE- 1,750,000 21-Sep-20 6-Sep-23 Documents and C1 Construction Supervision Services
Project Visual Design and Social ILBANK C1 CS CQS National 120,000 EU Grant 7-Dec-20 27-Mar-23
Media Post Management
Public Awareness ILBANK C2 CS CQS National 300,000 EU Grant 7-Dec-20 1-Apr-22 Campaign Post
Individual consultants (in the fields of procurement, finance, technical and environment
etc.) and Probity ILBANK C3, National 780,000 EU Grant Assurance CS INDV - - C4……… Post Providers for ILBANK, Municipalities and Utilities (Multiple Contracts)
Project Printed Materials ILBANK NCS 1 NCS RFQ National 40,000 EU Grant 24-Jan-21 24-Apr-21 Production Post
Producing the Project Visual ILBANK NCS 2 NCS RFQ National 150,000 EU Grant 24-Jan-21 24-Apr-21
Production & Post Materials
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Estimated
Estimated Contract Estimated Activity Reference Market Contract Completion Amount Description No. Approach Signing Date (including
Method (in EUR) (*)
Category Date defects liability
Procurement Procurement Procurement Funding Source Funding ReviewMethod period) Logistical & Organizational Services for Capacity Building Activities for ILBANK and Final Beneficiaries
(Workshops, seminars, ILBANK NCS 3 NCS RFQ National 370,000 EU Grant - - symposiums, and Post trainings); and citizen satisfaction, baseline and endline surveys (Multiple Contracts) Logistical & Organizational
Services for IBRD Capacity Building ILBANK NCS 4 NCS RFQ National 630,000 - - Loan Post Activities for ILBANK (Multiple Contracts) Logistical & Organizational Services for
Project Opening/Mid ILBANK NCS 5 NCS RFQ National 125,000 EU Grant - - Term//Closing Post Events and etc. (Multiple Contracts) (*) VAT included in Loan financing
10. Advance Procurement. Procurement Regulations Paragraphs 5.1 and 5.2 (Advance Contracting and Retroactive Financing) permits that the Borrower may wish to proceed with the procurement process before signing of the Legal Agreement. In such cases, if the eventual contracts are to be eligible for Bank financing the procurement procedures, including advertising, shall be consistent with Sections I, II and III of the Procurement Regulations which cover the Bank’s Core Procurement Principles of economy, efficiency, transparency, fairness, fit-for purpose, value-for-money and integrity. With this understanding, ILBANK will initiate the selection of the PIU consultants and design review and supervision consultants’ selection upon publication of the General Procurement Notice in the UN Development Business online.
11. Procurement Methods and Standard Procurement Documents. While comprehensive selection methods and use of Bank’s Standard Procurement Documents will be applicable, due to emergency response nature of the project, arrangements will be used in the project procurements. Higher thresholds will be used for the national streamlined procurement procedures and simple selection procedures will apply for the selection consultants as specified in the
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approved procurement plan. Determined thresholds and selection methods will be reviewed by the Bank during the project supervisions and/or when the Bank decides and will be updated as appropriate.
12. National Procurement Procedures. When approaching the national market, as agreed in the Procurement Plan, Turkey's national procurement procedures will be used by ILBANK in accordance with the provisions in paragraphs 3.21-3.23; 3.30; 3.32; 5.3; 5.4; 5.5 and 5.7(a) of the Procurement Regulations. In such procurements, bidding documents agreed by the Bank in Turkish language including mandatory provisions specified in the procurement plan will be used.
13. Procurement Risk Assessment. The World Bank has conducted a procurement assessment for the project, with a focus on ILBANK in terms of: (i) procurement regulatory framework and management capability; (ii) integrity and oversight; (iii) procurement process and market readiness; and (iv) procurement complexity. The assessment concludes that: (a) applicable procurement policies and the regulatory system are designed broadly to meet Core Procurement Principles of value for money, economy, efficiency, effectiveness, integrity, transparency and fairness and accountability; (b) ILBANK has a clear system of accountability with clearly defined responsibilities and delegation of authority on who has control of procurement decisions; (c) there is a clear identified target market for all procurements; and (d) ILBANK/Municipalities effectively manages contracts to ensure delivery as per the contract conditions. The assessment is recorded in the Procurement Risk Assessment and Management System of the Bank.
14. ILBANK will undertake the overall responsibility of the project implementation and coordination through its Project Management Unit (PMU) located under the International Relations Department. PMU was originally established in 2005 for the Bank financed MSP-I project and has been continuously operational throughout MSP-II, SCP-I, SCP-II, and SCP-II additional financing projects. Hence, PMU is experienced in Bank financed projects and familiar with World Bank procurement procedures and contract management. All the procurements under the proposed project will be conducted by ILBANK/PMU centrally. The technical requirements in the selection documents will be agreed by the municipalities/utilities. The beneficiary municipalities/utilities will attend the bid evaluation committees and sign the respective contracts.
15. ILBANK PMU is linked to three separate units namely Contract Management Unit, Financial Management Unit and Technical Management Unit. The procurement management is under the responsibility of the Contract Management Unit. Considering fast track urgent response nature of the project, and heavy work load of existing PMU staff due to other Bank financed SCP-I, SCP-II and SCP-II additional financing projects, and also from projects of other IFIs, a dedicated procurement team will be established under the PMU with minimum 2 procurement experts who are familiar with the Bank procurement procedures. This dedicated procurement team (FRIT procurement team) will be supported by several specialized departments within ILBANK including Investment Coordination Department and Technical Management Team. The FRIT procurement team will be mainly responsible for the implementation and coordination of the procurement activities within the scope of the project. In case of need, Investment Coordination Department with vast experience in procurement under the public procurement procedures will bring additional capacity to the FRIT procurement team. When needed, PMU will be supported by Project Department responsible for review and approval of feasibility studies under the project. In addition, Infrastructure Implementation Department will provide support to the review of technical specifications; and several other administrative departments such as Accounting and Financial Affairs, IT, and Banking Services will be ready provide support when needed.
16. The beneficiary municipalities/utilities have certain technical and procurement capacity to operate their regular services with varying staff capacity depends on the size of the city. For example, while there are 78 technical and
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procurement staff exists in Osmaniye, similar staff number reaches to 554 in KOSKA (Konya Water and Wastewater Utility) including 433 technicians and 5 procurement experts. Some of the municipalities have experience to work with IFIs in their investment projects financing but in most of the cases experienced staff may not be available for the proposed project. Considering limited implementation duration of the project, the participating municipalities/utilities will establish dedicated project implementation units comprised of procurement and technical experts. These experts will be involved in the selection process of the design review and supervision consultants, works contractors, good suppliers and management of concluded contracts. The participating municipalities/utilities will hire experts experienced in the procurement and management of the contracts in the Bank financed projects, if such staff already not exist in their teams.
17. Given the emergency nature of the project and limited implementation time; and taking into account the existing work load of ILBANK; and procurement and contract management capacity of beneficiary municipalities/utilities; the overall procurement risk for the project is assessed as “substantial”. The risk rating can be lowered to “Moderate” when the agreed actions in Table 4.2 below have been put in place. The assessment will be recorded in the Procurement Risk Assessment and Management System of the Bank.
Table 4.2: Identified Risks and Agreed Action Plan Action Identified Risk Mitigation Measure Responsible Party Time Frame No. ILBANK has been TORs will be prepared by implementing three A dedicated PMU team ILBANK and the positions will World Bank financed established to be advertised in advance projects and the projects implement the project before the project financed by other IFIs activities and at least 2 1. ILBANK effectiveness. simultaneously. The experienced
teams in the PMU are procurement specialists Contracts will be signed within overloaded. PMU may will be employed in this first month after the project not be able to meet the unit. effectiveness. procurement deadlines. Project implementation duration is relatively short and beneficiary municipalities has no WB procurement experience. If the procurement schedules are not met the ILBANK PMU will be contracts may not be supported by the completed on time. To Throughout the 2. ILBANK’s Investment ILBANK accelerate the project project procurement process. Coordination implementation all the Department, as needed. procurements will be conducted centrally by ILBANK. This arrangement requires parallel implementation of procurement activities including establishment
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Action Identified Risk Mitigation Measure Responsible Party Time Frame No. of various bid evaluation committees. Beneficiary Beneficiary municipalities/ utilities municipalities/utilities staff are unfamiliar with will employ a staff the World Bank knowledgeable in Procurement procurement and Contracts will be signed within ILBANK/ 3. Regulations and contract contract first month after the project Municipalities/Utilities provisions. It may cause implementation. effectiveness. misinterpretation of procurement provisions This staff will be trained and contract by PMU Procurement implementations. Specialists. Selection of independent ILBANK to engage Stakeholder perception probity assurance providers independent probity on the integrity of the ILBANK will be completed before 4. assurance providers in contract negotiation inviting the consultants to the contract process in CQS selection. submit their technical and negotiations. financial proposals. Differentiation of procurement implementations among the implementation Develop a Project Before the Project 5. ILBANK entities. It may create Operations Manual. effectiveness. unnecessary questions from the procurement stakeholders. Incomplete environmental and social If applicable, all safeguard studies may safeguard studies will Throughout the 6. ILBANK/PMU delay commencement of be completed before Project. the contract signing of the contracts. implementation. Misinterpretation of the Procurement Regulations and terms and conditions of Work closely with Throughout the 7. the contracts. It may World Bank ILBANK Project. cause noncompliance Procurement Specialist. and also time and cost overruns in the contract implementation.
18. Procurement supervision frequency. The World Bank will review the procurement arrangements performed by the implementing agencies, including contract packaging, applicable procedures, and the scheduling of the procurement processes, for their conformity with the Legal Agreement. Those procurements did not have ex-ante due diligence by the World Bank will be subject to ex-post due diligence on a sampling basis in accordance with the procedures set forth in Paragraph 4 of the Annex II to the Procurement Regulations. A post review of the procurement documents
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will normally be undertaken annually during the World Bank’s supervision mission, or the World Bank may request to review any particular contract at any time. In such cases, the PMUs shall provide the World Bank the relevant documentation for its review.
19. Complaint review. The procurement complaints other than covered under Annex III of the Procurement Regulations are to be handled by the ILBANK in accordance with the procedures agreed by the Bank and stipulated in the POM. Immediately upon received, the complaints will be recorded in the STEP complaint module by PMU. ILBANK will not proceed with the next stage/phase of the procurement process, including with awarding a contract without satisfactory resolution of the complaint(s).
20. Operational costs will not be considered under procurement implementation which could be the incremental expenses, including office supplies, vehicles operation and maintenance cost, maintenance of equipment, communication costs, rental expenses, utilities expenses, consumables, transport and accommodation, per diem, cost for procurement advertisements, and salaries of locally contracted support staff.
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ANNEX 5: Communications and Visibility Plan
1. A project Communications and Visibility Plan will be developed by the Project Management Unit (PMU) in İlBank for inclusion in the Project Operations Manual (POM), and the EU Delegation to Turkey will be consulted on it in advance, ahead of project launch. The following annex presents preliminary guidelines, principles, and indicative objectives/activities for communications efforts under the project.
2. The final plan will be aligned with the European Union Communications and Visibility Manual for External Actions60 as well as FRiT Facility Visibility Guidelines.61 Communications and visibility activities under the project will be implemented in coordination with the EU Delegation in Turkey,62 including visibility requirements.63
5.1 Initial Project Communications Objectives
3. The objectives of communications activities are to: help manage expectations and mitigate against local political and governance risks; facilitate outreach and engagement of refugees and host communities in project activities; and share results and disseminate project lessons learned with key audiences for broader impact. Activities will also seek to inform and communicate to project beneficiaries and project stakeholders, the EU’s financial contribution to support refugees and host communities in Turkey.
4. Indicative objectives and messages for each target group. The Communications and Visibility activities set out in this Plan will target the following groups of beneficiaries:
60 http://ec.europa.eu/europeaid/work/visibility/documents/ communication_and_visibility_manual_en.pdf. 60 Communications and Visibility Manual for EU External Actions Projects funded under the EU Facility for Refugees in TurkeyVisibilityGuidelines_May2017_FRIT_EN_20170605_Final.docx http://avrupa.info.tr/eu-funding-in-turkey/visibility-guidelines.html. 60 The EU Delegation will be informed about the events at least 10 days prior to allow for participation. Designs of all visibility materials, publications, promotional items, and videos will be submitted to the EU Delegation for review and approval before production. 60 The EU-Turkey joint logo should be accompanied by the following text in English, Turkish, and Arabic (and any other language where needed). “This project is funded by the European Union”. Illustrations will be provided in the POM. The materials, items for beneficiary usage, and office supplies to be used by the partners and procured under EU funds should display the EU flag accompanied by the following text in English, Turkish, and Arabic (and any other language where needed): “Funded by the European Union.” Illustrations will be provided in the POM. The following disclaimer will be used in relevant materials: “This leaflet/brochure/video… has been produced with the financial support of the European Union. Its content is the sole responsibility of the Ministry of Industry and Technology and Turkish Development Agencies and may not reflect the views of the European Union.”
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Table 5.1 Indicative Objectives for Communications and Visibility Plan Target Group Indicative Objectives Overall population • To raise awareness of the residing population including both refugees and host including both community members regularly on project progress and results, particularly on refugees and host interventions related to construction and rehabilitation works for water, sanitation community members and solid waste facilities. living in the 5 • To promote participation to the public meetings to integrate communities into provinces decision-making mechanisms. • To make improvements visible for communities by acknowledging the work done and role of project partners in making it. • To inform communities well in advance about any type of temporary environmental impacts such as wastewater discharge, generation of dust and noise during construction and operation. İlBank PIU’s, • To launch a series of information meetings in the 5 provinces to engage PIU’s, municipalities, SKI’s municipalities, SKI’s and local stakeholders into dialogue on the project objectives and local and future activities. stakeholders • To inform and raise awareness of PIU’s municipalities, SKI’s and local stakeholders on the issues about sustainability, resource efficiency, climate change mainstreaming, gender and integrated approaches. • To update PIU’s, municipalities, SKI’s and local stakeholders about the project progress and results regularly. Media, national • Increase awareness on the project’s progress and results; particularly promoting authorities, and project’s impact on: communities/general • Environment (decreased water loss, quality discharged water, closure of existing public dumpsites, increased energy efficiency, reduced non-revenue water…) and • People’s everyday lives (improved access to safely managed water, improved service delivery and related health) as a result of services provided to overall population (host population and refugees).
Indicative project implementation activities
(a) Launch a series of information meetings in 5 provinces to engage PIU’s, municipalities, SKI’s and local stakeholders into dialogue on the project objectives and roadmap. 5. To increase the ownership among municipalities and build the bridges between project implementation units and management teams, it is important to organize a series of meetings in the beginning of project implementation. The meetings will set the ground for understanding the project objectives, agreeing collectively on a roadmap, addressing potential challenges on the way ahead. It will also become an effective platform to enable two-way communication where municipalities can raise operational bottlenecks during implementation. Close involvement of municipalities, sewerage utilities and other stakeholders to the entire process is key, particularly during strategic decision-making processes in which accurate background data and information is needed for effective project execution.
(b) Raise awareness of the residing population regularly on project progress and results.
6. The communities residing in selected provinces will benefit from the improved water, sanitation and solid
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waste facilities at the end of the project. This will require a set of actions aiming at informing the residents at critical points where they will be aware on: (i) what happens in their neighborhood; (ii) why it is needed; (iii) when the construction work will start and how long it will take to complete it; and (iv) by whom it is led.
7. Main project information and critical dates need to be shared in public information meetings and other online platforms (website and social media of municipalities, NGOs, governorate). In addition to that, construction parapets are functional and visible spaces to illustrate the planned work and inform community in the neighborhood about the expected results and start/end dates of operational work. Providing timely, relevant and life-enhancing information about the work carried out under the project would address some risks and underlying vulnerabilities. It would also avoid negative reactions rooting from ongoing construction and its temporary environmental impacts. Stressing the benefits (eg: “X amount of water will be saved with the rehabilitation of the pipelines.”) could be accompanied to the key project information content in the signboards surrounding the construction area.
8. One way to address misinformation risks could be achieved by involving community leaders of affected groups and maintain a continuous dialogue with them via public information meetings on their questions and concerns. Updated FAQ sheets in print and visual format would be useful to reach target communities via social media, SMS, hand-outs and videos. It is also crucial to acknowledge project’s contribution once the operation work is completed in constructed or rehabilitated facilities via signboards and temporary outdoor ads. (eg: “With this water treatment plant, x amount of water was treated and provided as safe drinking water to X number of households in the municipality).
(c) Increase awareness on the project’s results; particularly promoting project’s impact on environment and people’s everyday lives.
9. Project opening and closing ceremonies, local information meetings, on-site ceremonies of completed works, workshops and trainings will be timely opportunities to inform public and local actors on the project results and progress. These events, as well as dissemination materials including posters, brochures, reports, training materials and all other project documents will be prepared in line with EU visibility guidelines. Any refurbishment, equipment and technology infrastructure will acknowledge EU’s financial support, providing an explanation on project’s contribution to water, wastewater and solid waste infrastructure in the provinces and EU’s financial support on construction sites such as new water reservoirs, pressure release chambers, rehabilitated pipelines, water reservoirs and pumping stations.
10. News releases, event announcements, human-interest stories, audio-visual materials will be published on websites of municipalities and/or separate project website with clear acknowledgment of EU contributions. Press releases and success stories marking project achievements, updates and progress will be disseminated through local and national media outlets. Exclusive interviews and op-eds will be facilitated through the local and national TV/radio networks.
11. For audio-visual materials, it would be possible to build a narrative around a group of people who have experienced a positive change that comes with the improved conditions in water facilities. Project’s impact in the areas of sanitation, provision of drinking water, waste water and solid waste management will be told through human stories. The stories could be coupled with before/after conditions of a project site (e.g: rehabilitated dumpsite) or improved access of a Turkish/refugee household to drinkable water etc.
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12. It is key to have an online platform where all project information and audio-visual documents are shared and displayed for public and project stakeholders. This could be achieved either through launching a project website or creating project-dedicated webpages under each municipality website. Social media accounts of municipalities and their established connections (number of followers) will help reach target audience effectively and quickly.
Table 5.2 Indicative budget for Communications and Visibility activities Indicative Indicative Scope/Tools Indicative Activity Budget (Euro) Launch a series • 5 provinces – ILBANK PIU’s, municipalities, SKI’s and local stakeholders 185,000 of information • Local information meetings to facilitate information exchange ideas among local campaigns in stakeholders and municipalities. the 5 provinces Indicative communication tools: • Information brochures, leaflets and posters calling stakeholders to take urgent action and featuring project objectives and interventions while raising awareness on the themes such as climate change, sustainability, water availability, current environmental constraints and project’s action points to address them. (social media, printed and online dissemination) • Infographic posters that will illustrate where/why/how the interventions take place. • Dissemination of information materials in municipalities, SKI’s and local governing bodies. • Utilizing existing media channels of municipalities to provide information about the project (Periodicals of ILBANK, Union of Municipalities of Turkey, Belediye TV) • Project promotional materials targeting local stakeholders and municipalities to increase their ownership Awareness- • 5 provinces – broad outreach to host community and refugee population 300,000 raising events • Organize a series of public information meetings that bring together local for both host community members to engage them in dialogue. community and refugee Indicative communication tools: population on • Printed materials to be disseminated in public information meetings on project’s project interventions progress and • Active use of social media channels of municipalities and their established results communication networks to promote participation of communities to the meetings. • Clear infographics/FAQ sheets illustrating when, why and what will happen in the neighborhood. • Construction parapets providing information about ongoing work and clear messages. • SMS messages and activation of existing WhatsApp groups to inform people about upcoming project activities. • Signboards and outdoor ads on-site and in streets, buses, metro stations once the rehabilitation and construction works are completed.
Increase • 5 provinces – ILBANK PIU’s, municipalities, SKI’s and local stakeholders 250,000 awareness on
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Indicative Indicative Scope/Tools Indicative Activity Budget (Euro) the project’s • Organization of opening and closing ceremonies and on-site completion ceremony results of a major work item.
Indicative communication tools: • Press releases on project progress, announcements, and results. TV and radio interviews of representatives from municipalities, community leaders through local and national media networks. Op-eds and interviews on sectoral periodicals. • Infographic videos describing project contribution to energy and water efficiency. • Human-interest stories (video) that narrate the change in people’s lives and households living around an area rehabilitated by solid waste management. • Photo stories that illustrate before/after conditions of the project sites with stories from people living/working in the neighborhood. • Visibility materials displayed in events, workshops and meetings (rollups, flags, backdrops, banners) • Effective use of webpages under Municipality websites/ standalone project websites and social media channels of the municipalities. TOTAL EUR 735,000
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ANNEX 6: Team List
1. Sanyu Lutalo, Senior Water Supply and Sanitation Specialist, Team Leader 2. Canan Yildiz, Infrastructure Specialist, Co-Team Leader 3. Lisa Lui, Lead Counsel 4. Joanna Mclean Masic, Senior Urban Specialist, Co-Team Leader 5. Salih Bugra Erdurmus, Senior Procurement Specialist 6. Salih Kemal Kalyoncu, Senior Procurement Specialist 7. Ayse Seda Aroymak, Senior Financial Management Specialist 8. Arzu Uraz Yavas, Social Development Specialist 9. Esra Arikan, Senior Environmental Specialist 10. Gulana Hajiyeva, Senior Environmental Specialist 11. Christian Borja-Vega, Senior Economist 12. Ahmet Kindap, Urban Development Specialist 13. Toyoko Kodama, Water Supply and Sanitation Specialist 14. Felipe Vicente Lazaro, Senior Dam Specialist 15. Verena Schaidreiter, Junior Professional Officer 16. Ntombie Z. Siwale, Operations Analyst 17. Sylvie Ngo-Bodog, Senior Program Assistant 18. Ulker Karamullaoglu, Program Assistant 19. Turda Ozmen, Financial and Economic Consultant 20. Emre Tokcaer, Technical Consultant 21. Burcu Ergin, Social Safeguards Consultant 22. Merve Ayse Kocabas Yurtkuran, Environmental Consultant 23. Ibrahim Sirer, Procurement Consultant 24. Tomris Oksar, Procurement Consultant 25. Ayse Ozge Bayram, Communications Consultant 26. Turgrul Cem Icten, Environmental Consultant
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ANNEX 7: Project Map
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