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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: T7666 TECHNICAL ANNEX FOR A PROPOSED CREDIT Public Disclosure Authorized INTHE AMOUNT OF SDR 67.5 MILLION (US$102 MILLION EQUIVALENT) TO THE REPUBLIC OF ANGOLA FOR AN EMERGENCY MULTISECTOR RECOVERY PROGRAM-PHASE 2 Public Disclosure Authorized April 24,2007 Transport Group AFCS2 Africa Regional Office 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. Public Disclosure Authorized CURRENCY EQUIVALENTS (As of March 3 1,2007) SDR 1.00 = US$1.51 US$l.OO = Kwanza 79.77 FISCAL YEAR January 1 to December 31 ABBREVIATIONS AND ACRONYMS ADB African Development Bank CQS Consultant Qualification Selection ECP Estratdgia de Combate a Pobreza (Poverty Reduction Strategy) EDEL Empresa de DistribuiGiio de Electricidade de Luanda (Power Supply Authority of Luanda) EMRP Emergency Multisector Recovery Program ENE Empresa Nacional de Electricidade (National Power Supply Authority) EPAL Empresa de Agua da Provincia de Luanda (Water Supply Authority of Luanda) FMR Financial Monitoring Report GDP Gross domestic product ICB International Competitive Bidding ICs Individual Consultant Selection IDA International Development Association IMF International Monetary Fund LCS Least Cost Selection LIB Limited International Bidding LICUS Low-Income Countries Under Stress NCB National Competitive Bidding NGO Nongovernmental organization PMIU Project management and implementation unit PPMRRP Priority Phase Multisector Rehabilitation and Reconstruction Program QCBS Quality and Cost Based Selection SENSE Sewiqo National de Sementes (National Service of Seeds) sss Single-Source Selection TSS Transitional support strategy UNCDF United Nations Capital Development Fund UNDP United Nations Development Program UNITA Uniiio Nacional para Independencia Total de Angola (National Union for Total Independence ofAngola) WHO World Health Organization Vice President: Obiageli K. Ezekwesili Country Director: Michael Baxter Sector Manager: C. Sanjivi Rajasingham Task Team Leader: Abdelmoula Ghzala 11 FOR OFFICIAL USE ONLY REPUBLIC OF ANGOLA Emergency Multisector Recovery Program .Phase 2 TECHNICAL ANNEX Table of Contents PART 1: AFTERMATH OF THE CONFLICT ....................................................................................... 1 A . The end ofthe conflict ............................................................................................................... 1 B. Economic and social impact ofthe conflict ............................................................................... 1 D. Governance ................................................................................................................................ 3 E. Partnerships ................................................................................................................................ 3 F. Sector issues............................................................................................................................... 3 G. Government’s rehabilitation and reconstruction program ......................................................... 4 PART 2: BANK RESPONSE AND STRATEGY ..................................................................................... 5 A . Rationale for Bank involvement ................................................................................................ 5 B. Lessons learned. reflected in the design of the overall program and IDA- financed projects ........................................................................................................................ 7 PART 3: DETAILED PROGRAM AND PROJECT DESCRIPTION.................................................. 7 A . Program and Project objectives ................................................................................................. 7 B. Program phasing ........................................................................................................................ 8 C . Progress of phase 1 .................................................................................................................... 8 D. Estimated costs and financing ................................................................................................. 11 E. Program and Project components ............................................................................................ 13 PART 4: IMPLEMENTATION ARRANGEMENTS ........................................................................... 18 A . Implementation period............................................................................................................ -18 B. Capacity of the government to execute the project .................................................................. 19 C . Program and project implementation and management structure ............................................ 19 D. Procurement and disbursement arrangements ......................................................................... 19 E. Disbursement arrangements..................................................................................................... 24 F. Financial management arrangements and audits ..................................................................... 26 G. Supervision .............................................................................................................................. 28 H. Monitoring and evaluation ....................................................................................................... 28 I. Coordination of donors ............................................................................................................ 29 J . Environmental aspects and compliance with the World Bank SafeguardPolicies ...................29 PART 5: BENEFITS AND RISKS .......................................................................................................... 30 This document has a restricted distribution and may be used by recipients only in the performance of their official duties . Its contents may not be otherwise disclosed without World Bank authorization . ... 111 ANNEXES Annex 1: Angola Emergency Multisector Recovery Project Results Framework ...........33 TABLES Table 1: Progress of EMRP 1 implementation .............................................................. 10 Table 2: PPMRRP costs and program costs by phase ................................................... 11 Table 3: EMRP costs, total and by phase ...................................................................... 12 Table 4: IDA contribution to the program by phase ...................................................... 12 Table 5: Feeder roads targeted to be rehabilitated in Malanje and BiC provinces .........13 Table 6: Rural development cost summary (US$ millions) ........................................... 14 Table 7:Roads cost summary (US$ millions) ............................................................... 14 Table 8: Electricity cost summary ................................................................................. 15 Table 9: Water and sanitation services cost summary (US$ millions) .......................... 16 Table 10: Urban services cost summary ........................................................................ 17 Table 11 : Thresholds for procurement methods and prior review ................................. 22 Table 12: Phase 2 project costs by procurement arrangements ..................................... 23 Table 13: Critical risks and possible controversial aspects ........................................... 31 MAP Targeted provinces........................................................................................................... 6 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. iv REPUBLIC OF ANGOLA Emergency Multisector Recovery Program - Phase 2 PART 1: AFTERMATH OF THE CONFLICT A. The end of the conflict 1. The prospects for lasting peace in Angola are now strong. In April 2002 the representatives of the government and of UniZo Nacional para Independencia Total de Angola (UNITA) signed a ceasefire and peace agreement. In contrast to agreements signed in 1991 and 1994, this agreement has held, and UNITA has transformed itself into a political party. It is anticipated that presidential and parliamentary elections will be held in 2009. 2. The peace agreement created a unique opportunity to re-start development after almost four. decades of war, and to achieve a permanent reduction in poverty in Angola. To consolidate peace and national reconciliation, the government quickly began to implement programs aimed at restoring order and security, at addressing the needs of the most vulnerable groups, at revitalizing the economy, at restarting essential social services, and at rebuilding critical infrastructure, including roads, bridges, and railways. To both promote development, and to restore the confidence of development partners and investors, the government is undertaking economic reforms and tackling issues of governance. It is also improving oversight over government revenues and increasing control ofpublic expenditures. B. Economic and social impact of the conflict 3. Angola ‘s almost 30 years of post-independence civil conflict have had devastating effects
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