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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 53495-SB EMERGENCY PROJECT PAPER ON A Public Disclosure Authorized PROPOSED GRANT IN THE AMOUNT OF SDR 2.2 MILLION (US$ 3.2 MILLION EQUIVALENT) TO SOLOMON ISLANDS FOR A Public Disclosure Authorized RAPID EMPLOYMENT PROJECT April 28, 2010 Pacific Islands Sustainable Development Sustainable Development Department East Asia and Pacific Region Public Disclosure Authorized 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. CURRENCY EQUIVALENTS (Exchange Rate Effective: March 5, 2010) Currency Unit = Solomon Dollars SDB 7.5 = US$ 1 US$ 1.51824 = SDR 1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank NYP National Youth Policy AusAID Australian Agency for International PET Pre-Employment Training Development PDO Project Development Objective CBSI Central Bank of Solomon Islands POM Project Operations Manual CEWG Core Economic Working Group PRIF Pacific Region Infrastructure Facility CLGF Commonwealth Local Government PSC Project Steering Committee Forum (Project) RAMSI Regional Assistance Mission to CLO Community Liaison Officer Solomon Islands CSP Community Sector Program REP Rapid Employment Project DA Designated Account RES Rapid Employment Scheme EPP Emergency Project Paper RPF Resettlement Policy Framework ESMG Environmental and Social SDR Special Drawing Rights Management Guidelines SI Solomon Islands FM Financial Management SIG Solomon Islands Government GEC Global Economic Crises SIRIP Solomon Islands Rural Investment HCC Honiara City Council Program IDA International Development SOE Statement of Expenditures Association SPF State and Peace-Building Fund M&E Monitoring and Evaluation SPP Simplified Procurement Plan MDPAC Ministry for Development Planning TCC Technical Coordination Committee and Aid Coordination TPPD Transport Policy and Planning MID Ministry for Infrastructure Department Development TIMS Transport Infrastructure Management MIS Management Information System Services MOFT Ministry of Finance and Treasury UNDP United Nations Development NGO Non-governmental Organization Programme Vice President: James W. Adams Country Director: Ferid Belhaj Sector Director: John Roome Country Manager: Edith H. Bowles Sector Leader: Charles Feinstein Task Team Leader: Sean Bradley ii SOLOMON ISLANDS Rapid Employment Project CONTENTS Page A. Introduction ......................................................................................................................... 1 B. Emergency Challenge: Country Context, Recovery Strategy and Rationale for Proposed Bank Emergency Project. .................................................................................................... 1 C. Bank Response: The Project ............................................................................................... 3 D. Appraisal of Project Activities ............................................................................................ 6 E. Implementation Arrangements and Financing Plan .......................................................... 11 F. Project Risks and Mitigating Measures ............................................................................ 16 G. Terms and Conditions for Project Financing .................................................................... 17 Annex 1: Detailed Description of Project Components ................................................................ 19 Annex 2: Results Framework and Monitoring.............................................................................. 29 Annex 3: Summary of Estimated Project Costs ............................................................................ 31 Annex 4: Financial Management and Disbursement Arrangements ............................................ 32 Annex 5: Procurement Arrangements ........................................................................................... 45 Annex 6: Implementation and Monitoring Arrangements ............................................................ 55 Annex 7: Project Preparation and Appraisal Team Members ...................................................... 59 Annex 8: Environmental and Social Safeguards Framework ....................................................... 60 Annex 9: Economic and Financial Analysis ................................................................................. 70 Annex 10: Documents in Project Files ......................................................................................... 76 Annex 11: Statement of Loans and Credits .................................................................................. 77 Annex 12: Country at a Glance ..................................................................................................... 78 Annex 13: Maps IBRD #33482 .................................................................................................... 79 iii SOLOMON ISLANDS RAPID EMPLOYMENT PROJECT PROJECT APPRAISAL DOCUMENT EAST ASIA AND PACIFIC EASNS Date: April 21, 2010 Team Leader: Sean Bradley Country Director: Ferid Belhaj Sectors: Other social services (100%) Sector Leader: Charles M. Feinstein Themes: Social safety nets (33%); Conflict prevention and post-conflict reconstruction (17%); Other social protection and risk management (17%); Other urban development (17%); Participation and civic engagement (16%) Project ID: P114987 Environmental category: Partial Assessment Lending Instrument: Emergency Recovery Joint IFC: Loan Joint Level: Project Financing Data [ ] Loan [ ] Credit [X] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Total Bank financing (US$m.): 3.20 Proposed terms: Standard IDA Grant Terms Financing Plan (US$m) Source Local Foreign Total BORROWER/RECIPIENT 0.00 0.00 0.00 IDA Grant 3.20 0.00 3.20 Pacific Regional Infrastructure Facility 2.00 0.00 2.00 Trust Fund State and Peace Building Fund 2.00 0.00 2.00 Total: 7.20 0.00 7.20 Borrower: Solomon Islands Responsible Agencies: Honiara City Council Ministry of Infrastructure Development PO Box 324 PO Box G8 Solomon Islands Solomon Islands Tel: +677 21133/21134 Tel: +677-25783 iv Estimated disbursements (Bank FY/US$m) FY 2011 2012 2013 2014 2015 Annual 0.64 0.80 0.96 0.64 0.16 Cumulative 0.64 1.44 2.40 3.04 3.20 Project implementation period: Start January 1, 2010 End: December 31, 2014 Expected effectiveness date: June 30, 2010 Expected closing date: June 30, 2015 Does the project require any exceptions from Bank policies? Ref. Section Appraisal of Project Activities [ ]Yes [X] No Have these been approved by Bank management? [ ]Yes [ ] No Does the project include any critical risks rated “substantial” or “high”? [X]Yes [ ] No Ref. Section Project Risks and Mitigating Measures Project development objective Ref. Section C, paragraph 11 To assist targeted vulnerable urban populations to: (i) increase their incomes through the provision of short-term employment; and (ii) improve their knowledge, experience and basic employment skills that are valued in the workplace and society. Project description Ref. Section C, paragraphs 13-16 Component 1: Rapid Employment Scheme, would provide short-term temporary employment opportunities (of approximately 500,000 labor days over the life of the Project) for the vulnerable urban poor through labor-based public works, of which a Road Rehabilitation and Maintenance sub-component would be implemented by the Ministry of Infrastructure Development (MID), and an Urban Works and Services sub-component would be implemented by the Honiara City Council (HCC). Component 2: Pre-employment Training, would support up to a maximum of 7,500 project participants with information and training that would facilitate their effective participation in the short-term employment activities, and provide additional information on their overall health, safety and other skills valued in the workplace and society at large to address the target beneficiary group’s general lack of experience with and exposure to the more formal economy and job market. Component 3: Project Implementation Support, would support incremental project management costs to HCC and MID in implementing and overseeing project execution, including (but not limited to) technical assistance, training, additional project staff costs, goods, and general operating costs associated with the project. Which safeguard policies are triggered, if any? Ref. Section D OP/BP 4.01 on Environmental Assessment and OP/BP 4.12 on Involuntary Resettlement v A. Introduction 1. This Emergency Project Paper seeks the approval of the Executive Directors to provide an IDA Grant in the amount of US$3.2 million to Solomon Islands for the Rapid Employment Project (the “Project”). 2. The proposed IDA Grant would help finance a rapid and targeted labor-based public works project for vulnerable populations in and around the capital city of Honiara. The proposed support would serve to mitigate the impact of Solomon Islands Government (SIG) austerity measures on the possible re-emergence of social unrest and instability by increasing employment opportunities for marginal groups (particularly youth and women) and improving access to key services in poorer communities where violence had been previously focused. 1 3. Co-financing for the Project will be provided by the World Bank’s State and Peace- building Fund (SPF) of US$2.0 million, and
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