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Documentof The World Bank Public Disclosure Authorized ReportNo: 18018-GUA PROJECT APPRAISAL DOCUMENT Public Disclosure Authorized ONA PROPOSED CREDIT IN THE AMOUNT OF SDR 6.8 MILLION (US$9 MILLION EQUIVALENT) TO THE CO-OPERATIVE REPUBLIC OF GUYANA FOR AN Public Disclosure Authorized EL NINO EMERGENCY ASSISTANCE PROJECT September 29, 1998 Public Disclosure Authorized Finance,Private Sector Development and InfrastructureSMU Caribbean CMU Latin Americaand the CaribbeanRegion CURRENCY EQUIVALENTS Exchange Rate Effective: September 14, 1998 Currency Unit = Guyana D)ollar US$1.00 = G$162 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND AClRONYMS CAS Country Assistance Strategy CDC Civil Defense Commission CTB Central Tender Board ENSO El Ninfo Southern Oscillation ESAF Extended Structural Adjustment Facility GOG Government of Guyana GS&WC Georgetown Sewerage and Water Commissioners GUYWA Guyana Water Authority RD Hydrometeorological Division MOA Ministry of Agriculture MOF Ministry of Finance MOH&W Ministry of Housing and Water MOW Ministry of Works NDIB National Drainage and Irrigation Board PCU Project Coordinating Unit PEU Project Executing Unit SIMAP Social Impact Amelioration Program Vice President: Shahid Javed Burki Country Director: Orsalia Kalantzopoulos Sector Director: Danny M. Leipziger Task Team Leader: Thakoor Persaud GUYANA El NifioEmergency Assistance Project CONTENTS A. Project DevelopmentObjective 1. Project development objective ............................................................... 2 2. Key performance indicators ............................................................... 2 B. Strategic Context 1. Sector-related CAS goal supported by the project ........................................................ 2 2. Main sector issues and Government strategy ................................................................ 2 3. Sector issues to be addressed by the project and strategic choices ............. ..................3 C. Project Description Summary 1. Project components ................................................................ 4 2. Key policy and institutional reforms supported by the project ................ .....................4 3. Benefits and target population ................................................................ 5 4. Institutional and implementation arrangements ............................................................ 5 D. Project Rationale 1. Project alternatives considered and reasons for rejection ........................ .....................7 2. Major related projects financed by the Bank and/or other development agencies ........ 8 3. Lessons learned and reflected in the project design ...................................................... 8 4. Indications of borrower commitment and ownership .................................................... 9 5. Value added of IDA support in this project ............................................................... 9 E. Summary Project Analyses 1. Economic ............................................................... 9 2. Financial ............................................................... 10 3. Technical ............................................................... 10 4. Institutional ............................................................... 10 5. Social ............................................................... 11 6. Environmental ............................................................... 11 7. Participatory approach................................................................ 11 F. Sustainability and Risks 1. Sustainability ............................................................... 12 2. Critical risks ............................................................... 12 3. Possible controversial aspects ............................................................... 13 G. Main Credit Conditions 1. Effectiveness conditions ............................................................... 13 2. Other ............................................................... 13 H. Readiness for Implementation ............................................................... 14 I. Compliancewith IDA Policies ............................................................... 14 Annexes Annex 1. ProjectDesign Sumniary..................... 15 Annex 2. ProjectDescription ..................... 17 Annex 3. EstimatedProject Costs..................... 20 Annex4. Cost-BenefitAnalysis Summary ..................... 23 Annex5. Procurementand DisbursementArrangements ........................................ 25 Table A. ProjectCosts by ProcurementArrangements ........................................ 27 TableAl. ConsultantSelection Arrangements ......................................... ,.,,., 28 Table B. Thresholdsfor ProcurementMethods and Prior Review................................ 29 Table C. Allocationof Credit Proceeds........................................ 30 Annex 6. ImplementationPlan ........................................ 31 Annex 7. PerformanceIndicators ........................................ 36 Annex 8. El Nifio SouthernOscillation and its Influenceon Guyana's Precipitation.......... 37 Annex 9. Areas Benefitingfrom ProjectWorks ................................................... 49 Annex 10. EnvironmentalMitigation Measures ................................................... 52 Annex 11. ProjectProcessing Budget and Schedule................................................... 54 Annex 12. Documentsin ProjectFile ................................................... 55 Annex 13. Status of Bank Group Operationsin Guyana................................................... 56 A,nnex14. Countryat a Glance ................................................... 58 Map GUYANA El NifioEmergency Assistance Project Project Appraisal Document Latin America and the Caribbean Region Caribbean Country Management Unit Date: TaskTeam Leader/TaskManager: September24, 1998 ThakoorPersaud CountryManager/Director: Sector Director: Orsalia Kalantzopoulos DannyLeipziger Project ID: Sector: Program Objective Category: GY -PE - 57271 MultiSector (MY) EconomicManagement Lending Instrument: EmergencyRecovery Credit Program of Targeted Intervention: [ ] Yes [X] No ProjectFinancing Data [] Loan [X] Credit [ Guarantee [] Other [Specify] Amount(US$m/SDRm): US$9.0m/SDRs 6.8 m. Proposed terms:; Graceperiod (years): Standard(10 years) Yearsto maturity: Standard(40 years) Commitmentfee: Standard(a variablerate between0% and 0.5% of the undisbursedcredit balance set annuallyby the ExecutiveDirectors of IDA). Servicecharge: Standard(0.75%) Financing plan (US$m):$10.2 million equivalent Source Local Foreign Total Government 1.2 1.2 IDA 2.99 6.01 9.0 Other(specify) Total 4.19 6.01 10.2 Borrower: Co-operativeRepublic of Guyana CoordinatingAgency: CivilDefense Commission (CDC) in the Officeof the President ImplementationAgencies: NDIB, GUYWA,GSWC, HD and PEU Estimateddisbursements (Bank FY/US$M): 1999 2000 2001 2002 Annual 1.0 3.5 3.5 1.0 Cumulative 1.0 4.5 8.0 9.0 Projectimplementation period 3 years Expectedeffectiveness date: November30, 1998 Expectedclosing date: November30, 2001 OSD PAD Form: July 30, 1997 2 A: Project Development Objective 1. Project Development Objectives (see Annex 1): * Help to restore the country's agricultural capacity in drought-stricken areas through vulnerability reduction measures in the areas of hydrologic extremes. * Help in providing safe and reliable potable water service to marginal urban and remote hinterland and riverine communities which have been affected by drought. * Help restore flood protection in low-lying areas of the city of Georgetown. 2. Key Performance Indicators: Project Development Indicators: * Increase in the production of sugar, rice and other foodstuffs to pre-drought levels over 3 years. * Increase in the proportion of population with access to reliable and safe potable water service in drought-affected areas over 3 years. - Progressive reduction of flooding incidents in the City of Georgetown over three years. Output Indicators: - ;Gettingsluices and drainage systems repaired and rehabilitated, pumps acquired and installed and operating. - Area/Farmers benefiting from project works. * Actual vs. planned time taken to implement project works. * Number of vulnerable households benefiting from access to potable water. Input/Implementation Progress Indicators: - Time taken to contract out works. a Number of sluices and canals rehabilitated, outfalls cleared, pumps acquired and installed, operational efficiency of system. a For potable water, number of wells dug, service level and quality, number of beneficiaries. B: Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal[supported by the project (see Annex 1): CAS document number: P6155-GUA Date of latest CAS discussion: December 21, 1993 The project supports the CAS' overall goals of promoting sustainable economic growth and poverty reduction, by seeking to restore the country's agricultural caLpacityin drought stricken areas and helping to restore safe and reliable potable water service to drougfht-affected marginal urban, hinterland and riverine communities. 2. Main sector issues and Government strategy: The El Nifo Emereencv in Guyana The disruption of the normal ocean-atmosphere relationship in the tropical Pacific Ocean has had important world-wide impact, frequently negative, upon economic activities. Documented references to this event, more commonly known as the El Nifo Southern Oscillation (ENSO) phenomenon, began
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