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World Bank Document Document of The World Bank Public Disclosure Authorized Report No: 24488-LE Public Disclosure Authorized PROJECT APPRAISAL DOCUMENT ONA PROPOSED LOAN IN THE AMOUNT OF US$31.5 MILLION TO THE LEBANESE REPUBLIC FOR THE Public Disclosure Authorized CULTURAL HERITAGE AND URBAN DEVELOPMENT March 24, 2003 Finance, Private Sector and Infrastructure Mashreq Department Middle East and North Africa Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective December 2002) Currency Unit = Lebanese Pond (LL) LL 1 = US$ 0.000667 US$ I = LL 1,500 FISCAL YEAR January - December ABBREVIATIONS AND ACRONYMS AfD = Agence Fran$aise de Developpement CAS = Country Assistance Strategy CDR = Council for Development and Reconstruction DGA = Directorate General of Antiquities DGU = Directorate General of Urban Planning EA = Enviromnental Assessment EIB = European Investment Bank EMP = Environmental Management Plan EU = European Union GDP = Gross Domestic Product ICB = International Competitive Bidding IDF = Institutional Development Fund IRR = Internal Economic Rate of Return M&E = Monitoring and Evaluation MIU = Municipality Implementation Unit MOC = Ministry of Culture MOE = Ministry of Environment MOH = Ministry of Health MOIM = Ministry of Interior and Municipalities MOT = Ministry of Tourism MPWT = Ministry of Public Works and Transport NPV = Net Present Value O&M = Operation and Maintenance PIP = Project Implementation Plan PMU = Project Management Unit RAP = Resettlement Action Plan ROW = Right of Way SA = Social Assessment UNDP = United Nations Development Programme UNESCO = United Nations, Educational Scientific and Cultural Organization USAID US Agency for Intemational Development WTO = World Tourism Organization Vice President: Jean-Louis Sarbib Countiy Director: Joseph P. Saba Sector Director: Emmanuel Forestier Task Team Leader: Mohammed Feghoul LEBANESE REPUBLIC CULTURAL HERITAGE AND URBAN DEVELOPMENT CONTENTS A. Project Development Objective Page 1. Project development objective 3 2. Key performance indicators 4 B. Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 4 2. Main sector issues and Government strategy 5 3. Sector issues to be addressed by the project and strategic choices 11 C. Project Description Summary 1. Project components 13 2. Key policy and institutional reforms supported by the project 14 3. Benefits and target population 14 4. Institutional and implementation arrangements 15 D. Project Rationale 1. Project alternatives considered and reasons for rejection 19 2. Major related projects financed by the Bank and/or other development agencies 21 3. Lessons learned and reflected in the project design 22 4. Indications of borrower commitment and ownership 23 5. Value added of Bank support in this project: 24 E. Summary Project Analysis 1. Economic 26 2. Financial 26 3. Technical 26 4. Institutional 27 5. Environmental 28 6. Social 30 7. Safeguard Policies 32 F. Sustainability and Risks 1. Sustainability 33 2. Critical risks 34 3. Possible controversial aspects 36 G. Main Loan Conditions 1. Effectiveness Condition 37 2. Other 37 H. Readiness for Implementation 38 I. Compliance with Bank Policies 38 Annexes Annex 1: Project Design Summary 39 Annex 2: Detailed Project Description 45 Annex 3: Estimated Project Costs 76 Annex 4: Cost Benefit Analysis Sumrnary, or Cost-Effectiveness Analysis Summary 80 Annex 5: Financial Summary for Revenue-Earning Project Entities, or Financial Summnary 86 Annex 6: (A) Procurement Arrangements 88 (B) Financial Management and Disbursement Arrangements 94 Annex 7: Project Processing Schedule 101 Annex 8: Documents in the Project File 103 Annex 9: Statement of Loans and Credits 104 Annex 10: Country at a Glance 106 Annex I 1: Environmental Management Plan 108 Annex 12: Social issues 128 Annex 13: Project Safeguard Issues - Resettlement Policy Framework and Action Plan 138 Annex 14: Municipal Sector 153 Annex 15: Directorate General of Antiquities - Capacity Building 174 MAP(S) IBRD No. 32343: Lebanon - Cultural Heritage and Urban Development Project LEBANESE REPUBLIC CULTURAL HERITAGE AND URBAN DEVELOPMENT Project Appraisal Document Middle East and North Africa Region MNSIF Date: March 24, 2003 Team Leader: Mohammed D. E. Feghoul Sector Director: Emmanuel Forestier Sector(s): Other industry (30%), Sub-national Country Director: Joseph Saba government administration (20%), Central government Project ID: P050529 administration (20%), Roads and highways (20%), Lending Instrument: Specific Investrnent Loan (SLL) General water, sanitation and flood protection sector (10%) Theme(s): Other urban development (P), Municipal govemance and institution building (P), Civic engagement, participation and community driven development (S) Project.Financing Data [X] Loan [ ] Credit [ Grant [ ] Guarantee [] Other: For Loans/Credits/Others: Loan Currency: United States Dollar Amount (US$m): 31.5 Borrower Rationale for Choice of Loan Terms Available on File: El Yes Proposed Terms (IBRD): Fixed-Spread Loan (FSL) Grace period (years): 6.5 Years to maturity: 15.5 Commitment fee: 1% on principal amount Front end fee (FEF) on Bank loan: 0.00% Initial choice of Interest-rate basis: Type of repayment schedule: pq Fixed at Commitment, with the following repayment method (choose one): customized £1] Linked to Disbursement Financing Plan (US$m): - Source- Local Forelgn fotal, BORROWER 6.56 0.00 6.56 IBRD 15.70 15.80 31.50 FRANCE: FRENCH AGENCY FOR DEVELOPMENT 5.40 5.60 11.00 FRANCE, GOV. OF (EXCEPT FOR M1N. OF FOREIGN 0.40 0.60 1.00 AFFAIRS-MOFA) ITALY, GOV. OF (EXCEPT FOR DEV. COOP. DEPT. - MOFA) 5.00 5.00 10.00 Financing Gap 0.63 1.20 1.83 Total: 33.69 28.20 61.89 Borrower: GOVERNMENT OF LEBANON Responsible agency: CDR/DGA/MUNICIPALITIES OF BALBECK SAIDA BYBLOS TRIPOLI TYRE Address: Tallet Al-Saray, P.O. Box 116/5351, Beirut, Lebanon Contact Person: Mr. Jamal A.R. Itani, President Tel: 961-1-981-375 Fax: 961-1-981-252 Email: Contact Person: Dr. Wafa Charafeddine, Project Manager Tel: Fax: Email: [email protected] Estimated Disbursements ( Bank FYIUS$m): FY 2004K, 2005 2006 2007 2008 -2009 Annual 3.60 10.36 7.99 5.94 3.21 0.40 Cumulative 3.60 13.96 21.95 27.89 31.10 31.50 Project implementation period: Expected effectiveness date: 10/01/2003 Expected closing date: 12/31/2009 -2 - A. Project Development Objective 1. Project development objective: (see Annex 1) The proposed Cultural Heritage and Urban Development project (CHUD) has two key development objectives: (a) to create the conditions for increased local economic development and enhanced quality of life in the historic centers of five main secondary cities; and (b) to improve the conservation and management of Lebanon's built cultural heritage. These development objectives apply to five key secondary cities (Baalbeck, Byblos, Saida, Tripoli, and Tyre) which still show serious effects of damage, decay, poverty and economic stagnation resulting from the civil war. The cultural heritage assets of these five cities are of such outstanding worth that they must be integrated into municipal development plans and strategies for local economic growth and poverty alleviation. The CHUD objectives therefore reflect the recognition of the intrinsic value of built cultural heritage and its importance as an asset for sustainable economic and social development. By setting the two interrelated objectives the project aims to harvest the economic value of cultural heritage, capture the synergy between cultural heritage and urban development, and integrate cultural heritage preservation, local economic development, and poverty alleviation. It will also raise the awareness and appreciation of local inhabitants of the value of cultural heritage. The project inscribes into the World Bank strategy in Lebanon and is in line with the overall Bank strategy for the Middle East and North Africa (MENA) Region, having as a goal to contribute to poverty reduction and build a climate for investment, jobs and sustainable growth. It is also consistent with the MENA strategy on Cultural Heritage. Along with the ongoing municipal, infrastructure and social projects, it represents an important component in the Bank's assistance strategy to promote regionally balanced and equitable growth in Lebanon. The project is expected to have the highest impact in the following areas of focus of the MENA Strategy: - private sector development and employment creation, through enabling favorable and well regulated environment for private sector investments in disadvantaged neighborhoods; and - public sector efficiency and governance, through improving the quality of management of the heritage sector, and most importantly, of participatory urban rehabilitation, led by the municipal authorities. It will also contribute to the implementation of the strategy in: - education and training, by stimulating demand for skilled labor, specializing in restoration and rehabilitation of built heritage, in arts and crafts, and culture oriented services; - water management, by coordinating with other Bank projects and international donors to resolve water and waste water related issues within the historic urban cores and on heritage sites; and - gender, by encouraging neighborhood provision of educational, medical, and recreational facilities for women and girls, through re-use of historic buildings and rehabilitation of traditional urban fabric, as well as providing employment and training opportunities through community-driven actions. -3 - 2. Key performance
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