Document of the World Bank

Document of The World Bank

FOR OFFICIAL USE ONLY

Public Disclosure Authorized Report No: 84204-JM

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED LOAN

Public Disclosure Authorized IN THE AMOUNT OF US$42.00 MILLION

JAMAICA

FOR AN

INTEGRATED COMMUNITY DEVELOPMENT PROJECT FEBRUARY 7, 2014

Public Disclosure Authorized

Disaster Risk Management and Urban Development Unit Latin America and the Caribbean 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 {January 20, 2014}

Currency Unit = Jamaica Dollars (J$) J$106.9 = US$1

FISCAL YEAR April 1 – March 31

ABBREVIATIONS AND ACRONYMS

CBA Cost-Benefit Analysis CBC Community-Based Contracting CBO Community-Based Organization CPP Community Participation Procurement CPS Country Partnership Strategy CPTED Crime Prevention Through Environmental Design CQS Consultant Qualification Selection CRP Community Renewal Programme CSJP Citizens Security and Justice Programme EFF Extended Fund Facility EMF Environmental Management Framework EMP Environmental Management Plan EMS Environmental Management System EU European Union FM Financial Management FMA Financial Management Assessment GoJ Government of Jamaica IADB Inter-American Development Bank IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding ICBSP Inner City Basic Services for the Poor Project ICDP Integrated Community Development Project IIP Integrated Infrastructure Project IMF International Monetary Fund JPS Jamaica Public Services Company JSDF Japan Social Development Fund JSIF Jamaica Social Investment Fund MNS Ministry of National Security MoE Ministry of Education MoH Ministry of Health MoU Memorandum of Understanding NCB National Competitive Bidding NCPCSS National Crime Prevention and Community Safety Strategy NEPA National Environmental and Planning Agency NLA National Land Agency NSS National Security Strategy NSWMA National Solid Waste Management Authority

NWC National Water Commission ORAF Operational Risk Assessment Framework PASS Programme for Alternative Student Support PDO Project Development Objective PIOJ Planning Institute of Jamaica PIU Project Implementation Unit PRAM Procurement Risk Assessment and Management System PRP Poverty Reduction Programme QCBS Quality and Cost Based Selection RAP Resettlement Action Plan RBF Results-Based Financing RPF Resettlement Policy Framework SDC Social Development Commission SME Small and Medium Size Enterprises UNDP United Nations Development Program

Regional Vice President: Hasan A. Tuluy Country Director: Sophie Sirtaine Sector Director: Ede Jorge Ijjász-Vásquez Sector Manager: Anna Wellenstein Task Team Leader: Eric Dickson

iii

JAMAICA Integrated Community Development Project (P146460)

TABLE OF CONTENTS

Page

I. STRATEGIC CONTEXT ...... 1 A. Country Context...... 1 B. Sectoral and Institutional Context ...... 2 C. Higher Level Objectives to which the Project Contributes ...... 3

II. PROJECT DEVELOPMENT OBJECTIVE ...... 4 A. PDO ...... 4 B. Project Beneficiaries ...... 5 C. PDO Level Results Indicators ...... 5

III. PROJECT DESCRIPTION ...... 6 A. Project Components ...... 7 B. Project Financing ...... 9 C. Lessons Learned and Reflected in the Project Design ...... 9

IV. IMPLEMENTATION ...... 10 A. Institutional and Implementation Arrangements ...... 10 B. Results Monitoring and Evaluation ...... 11 C. Sustainability ...... 11

V. KEY RISKS AND MITIGATION MEASURES ...... 12 A. Risk Ratings Summary Table ...... 12 B. Overall Risk Rating Explanation ...... 13

VI. APPRAISAL SUMMARY ...... 13 A. Economic Analysis ...... 13 B. Technical ...... 14 C. Financial Management ...... 14 D. Procurement ...... 15 E. Social ...... 15 F. Environment ...... 16

Annex 1: Results Framework and Monitoring ...... 18

Annex 2: Detailed Project Description ...... 22

Annex 3: Implementation Arrangements ...... 30

Annex 4: Operational Risk Assessment Framework (ORAF) ...... 48

Annex 5: Implementation Support Plan ...... 52

Annex 6: Community Engagement, Criteria for Selection and Community Profiles ...... 54

Annex 7: Economic Analysis ...... 67

Annex 8: Map ...... 77

. PAD DATA SHEET Jamaica Jamaica Integrated Community Development Project (P146460) PROJECT APPRAISAL DOCUMENT

. LATIN AMERICA AND CARIBBEAN LCSDU

Report No.: PAD814

. Basic Information Project ID EA Category Team Leader P146460 B - Partial Assessment Eric Dickson Lending Instrument Fragile and/or Capacity Constraints [ ] Investment Project Financing Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date 01-May-2014 01-May-2020 Expected Effectiveness Date Expected Closing Date 15-Apr-2014 01-May-2020 Joint IFC No Sector Manager Sector Director Country Director Regional Vice President Anna Wellenstein Ede Jorge Ijjasz-Vasquez Sophie Sirtaine Hasan A. Tuluy

. Borrower: JAMAICA Responsible Agency: Jamaica Social Investment Fund Contact: Scarlette Gillings Title: Managing Director Telephone (876) 929-1620 Email: [email protected] No.:

. Project Financing Data(in USD Million) [ X ] Loan [ ] Grant [ ] Guarantee [ ] Credit [ ] IDA Grant [ ] Other

Total Project Cost: 42.00 Total Bank Financing: 42.00 Financing Gap: 0.00

. Financing Source Amount Borrower 0.00 International Bank for Reconstruction and 42.00 Development Total 42.00

. Expected Disbursements (in USD Million) Fiscal 2014 2015 2016 2017 2018 2019 2020 0000 0000 Year Annual 1.00 3.00 7.00 9.50 9.00 9.00 3.50 0.00 0.00 Cumulati 1.00 4.00 11.00 20.50 29.50 38.50 42.00 0.00 0.00 ve

. Proposed Development Objective(s) The Project Development Objective is to enhance access to basic urban infrastructure and services, and contribute towards increased community safety in selected economically vulnerable and socially volatile inner city communities of Jamaica.

. Components Component Name Cost (USD Millions) Basic Infrastructure and Access to Services 28.00 Public Safety Enhancement and Alternative Livelihoods 7.20 Institutional Strengthening for Urban Management and Public 2.69 Safety Project Administration 4.00

. Institutional Data Sector Board Urban Development

. Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co-benefits % Co-benefits % Health and other social services Other social services 40

vii

Water, sanitation and flood protection Water supply 30 Water, sanitation and flood protection Sanitation 30 Total 100 I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project.

. Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Social dev/gender/inclusion Other social development 20 Urban development Other urban development 80 Total 100

. Compliance Policy Does the project depart from the CAS in content or in other significant Yes [ ] No [ X ] respects?

. Does the project require any waivers of Bank policies? Yes [ ] No [ X ] Have these been approved by Bank management? Yes [ ] No [ ] Is approval for any policy waiver sought from the Board? Yes [ ] No [ X ] Does the project meet the Regional criteria for readiness for implementation? Yes [ X ] No [ ]

. Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 X Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous Peoples OP/BP 4.10 X Involuntary Resettlement OP/BP 4.12 X Safety of Dams OP/BP 4.37 X Projects on International Waterways OP/BP 7.50 X Projects in Disputed Areas OP/BP 7.60 X

viii

Legal Covenants Name Recurrent Due Date Frequency PIU 03-Feb-2014 Description of Covenant The Project Implementing Entity shall operate and maintain, throughout the implementation of the Project, a Project Implementation Unit (“PIU”), with functions, staffing, and responsibilities satisfactory to the Bank as set forth in the Project Operational Manual. Name Recurrent Due Date Frequency Subsidiary Agreement 14-Sep-2015 Description of Covenant To facilitate the carrying out of the Project, the Borrower shall make the proceeds of the Loan available to the Project Implementing Entity under a subsidiary agreement (the Subsidiary Agreement) between the Borrower and the Project Implementing Entity, under terms and conditions satisfactory to the Bank. Name Recurrent Due Date Frequency NSWMA RB Agreement 14-Sep-2015 Description of Covenant To facilitate the carrying out of Part 1(h)(4)(A) of the Project, the Project Implementing Entity shall enter into a results-based agreement with NSWMA (the NSWMA RB Agreement), under terms and conditions satisfactory to the Bank and elaborated in the Project Operational Manual. Name Recurrent Due Date Frequency RB Agreement 14-Sep-2015 Description of Covenant To further facilitate the carrying out of Part 1(h)(4)(B) of the Project, the Project Implementing Entity shall enter into a separate results-based agreement with each Community-Based Organization and Environmental Warden (a RB Agreement), under terms and conditions satisfactory to the Bank and elaborated in the Project Operational Manual. Name Recurrent Due Date Frequency Retaining an Independent Verification 14-Sep-2015 Agent Description of Covenant For purposes of Part 1(h)(4)(B) of the Project, the Project Implementing Entity shall retain an Independent Verification Agent with qualifications and experience, and under terms of reference acceptable to the Bank. Name Recurrent Due Date Frequency Independent Verification Reports X Quarterly

Description of Covenant For purposes of Part 1(h)(4)(B) of the Project, the Project Implementing Entity shall cause the Independent Verification Agent to: (a) carry out once each calendar quarter a technical verification of compliance of the work performed by NSWMA, the CBOs and Environmental Wardens; and (b) prepare an Independent Verification Report of as set forth in the Project Operational Manual. Name Recurrent Due Date Frequency Project Operational Manual X Description of Covenant The Project Implementing Entity shall carry out the Project in accordance with the provisions of the Project Operational Manual. Name Recurrent Due Date Frequency EMF and RPF X Description of Covenant The Project Implementing Entity shall carry out the Project in accordance with the EMF and RPF. Name Recurrent Due Date Frequency EMP X Description of Covenant Upon identification of the zone of impact of any Project activity under Part 1 of the Project, and prior to carrying out of any activities, the Project Implementing Entity shall: (a) carry out an environmental assessment of each said activity and thereafter prepare EMPs in accordance with the EMF, and (b) implement the EMP in accordance with its terms. Name Recurrent Due Date Frequency RAP X Description of Covenant Prior to the carrying out of any activity under Part 1 of the Project that involves Resettlement, the Project Implementing Entity shall prepare the corresponding Resettlement Action Plan (RAP) in accordance with the RPF, in form and substance satisfactory to the Bank, and immediately thereafter carry out the relevant RAP in accordance with its terms. Name Recurrent Due Date Frequency Bank’s Safeguard Policies X Description of Covenant The Project Implementing Entity shall ensure that that the terms of reference for any consultancy in respect to Part 3 of the Project shall be satisfactory to the World Bank following its review thereof and, to that end, such terms of reference shall duly incorporate the requirements of the Bank Safeguards Policies then in force, as applied to the advice conveyed through such technical assistance.

Conditions Name Type Subsidiary Agreement Effectiveness Description of Condition The Subsidiary Agreement has been executed on behalf of the Borrower and the Project Implementing Entity. Name Type Project Operational Manual Effectiveness Description of Condition The Project Operational Manual has been adopted by the Project Implementing Entity. Team Composition Bank Staff Name Title Specialization Unit Luz Maria Gonzalez Consultant Consultant LCSDU Yingwei Wu Senior Procurement Senior Procurement LCSPT Specialist Specialist John Morton Senior Urban Senior Urban LCSDU Environment Specialist Environment Specialist M. Mozammal Hoque Sr Financial Sr Financial LCSFM Management Specialist Management Specialist Adam Shayne Lead Counsel Lead Counsel LEGLE Angelica Nunez del Sr Urban Spec. Sr Urban Spec. LCSDU Campo Martin Henry Lenihan Senior Social Senior Social LCSSO Development Specialist Development Specialist Eric Dickson Sr Urban Spec. Team Lead LCSDU Joan Serra Hoffman E T Consultant E T Consultant LCSSO Patricia Maria Fernandes Social Development Social Development EASER Specialist Specialist Claudia Lorena Trejos E T Consultant E T Consultant LCSDU Farouk Mollah Banna Analyst Analyst UDRUR Gabriela Grinsteins E T Consultant E T Consultant LEGLE Michael J. Darr Consultant Consultant LCSEN Silpa Kaza E T Consultant E T Consultant UDRUR

Kimberly Nicole Consultant Consultant LCSDU Burrowes Non Bank Staff Name Title Office Phone City

. Locations Country First Location Planned Actual Comments Administrative Division Jamaica Westmoreland Parish of X Russia Westmoreland Jamaica Westmoreland Parish of X Westmoreland Jamaica Saint James Parish of Saint X Retirement James Anchovy Barrett Town Granville Jamaica Saint Catherine Parish of Saint X Spanish Town Central Catherine (Ellerslie Pen) Jamaica Saint Ann Parish of Saint Ann X Steer Town Jamaica Saint Andrew Parish of Saint X Majesty Gardens Andrew Rose Town Greenwich Town/ Newport West Wilton Gardens/ Rema Maxfield Park Jamaica Kingston Parish of Kingston X Hannah Town Denham Town Tivoli Gardens Jamaica Clarendon Parish of Clarendon X York Town Treadlight Curatoe Hill /Canaan Heights

xii

I. STRATEGIC CONTEXT

A. Country Context

1. Jamaica, the largest English speaking country in the Caribbean with a population of 2.7 million (2011), is an upper middle income country with a long history of low growth and high public debt. The country’s progress on poverty reduction and shared prosperity has been hampered in recent past due in large part to economic shocks that were amplified by structural weaknesses in the economy. For the past 30 years real per capita Gross Domestic Product (GDP) increased at an average of just one percent per annum, making Jamaica one of the slowest growing economies in the world.

2. Nevertheless Jamaica made significant progress in poverty reduction during the early part of the past decade. Between 1997 and 2007 the poverty rate fell from 19.9 to 9.9 percent, and while overall inequality remains relatively low compared to the rest of the region, people at the bottom 40 percent of the income distribution have suffered more than the average household in recent years1. Recent years, however, have witnessed the erosion of these earlier gains in poverty reduction and rising inequality with poverty sharply increasing to 17.8 percent in 2010. In urban areas such as the Kingston Metropolitan Area, poverty rates doubled in two years, from 7 percent in 2008 to 14.4 percent in 2010. Unemployment has also substantially increased (from 9.7 percent in 2007 to 16 percent in 2013), especially among women and young people. Youth unemployment is particularly worrisome, as 38 percent of young women and 25 percent of young men were unemployed in 2010.

3. Economic difficulties in Jamaica disproportionately affect the bottom 40 percent of the population, where food consumption accounts for over 50 percent of expenditures. The consumption level of the bottom 40 percent of Jamaica’s population, which had improved from 16.7 percent to 17.8 percent between 2001 and 2007, fell slightly to 17.3 percent in 2010. Jamaica was hit hard by the global economic crisis, as tourism and bauxite revenues plummeted, foreign direct investments and remittances declined and the economy contracted by 1.2 percent on average per year between 2009 and 2011. As in many other small open economies, economic recovery has been subdued. Moreover, Jamaica faces extreme difficulties in improving its debt situation.

4. In the current economic environment, Jamaica faces several important challenges to reverse the recent surge in poverty levels and ultimately eradicate extreme poverty and boost shared prosperity. Committed to restoring growth and building an inclusive prosperous Jamaica, the GoJ prepared and garnered local and international support for a comprehensive program of fiscal adjustment and structural reforms. In May 2013, the Government of Jamaica (GoJ) embarked on an ambitious reform program which obtained the support of the International Monetary Fund (IMF) through an Extended Fund Facility for Special Drawing Rights of 615.4 million (about US$932.3 million) for the period of April 2013 to March 2017. 2 The first review

1 Levels of inequality were among the lowest in the region at 0.38. Note that the Government of Jamaica (GoJ) is currently revising its poverty calculation methodology, with support from the Bank. The numbers presented in this document may change in the future if a revised methodology is adopted as is currently planned. 2 World Bank, Jamaica CPS FY14-FY17 (under preparation).

of the program, which supports debt restructuring, fiscal consolidation, and financial sector reforms, was successfully completed in October 2013. Since that time the GoJ has continued to demonstrate a clear commitment to reforms and showed that overall policy implementation under the program is strong and all quantitative performance targets and indicative targets for end-September 2013 were met, including the floor on social spending.3

B. Sectoral and Institutional Context

5. In Jamaica, 52 percent of the population resides in urban areas, and approximately 17 percent lives below the poverty line. Since the 1960s the country has witnessed a steady growth of the urban population, and with an estimated annual increase of 1.31 percent per annum, the number of people living in Jamaica’s cities is projected to be 1.5 million by 2020 and 1.8 million by 2030. This growing urban population requires support in terms of improved basic urban infrastructure and services in a socially safe environment.

6. Inadequate land use and urban planning has resulted in imbalanced regional development, inequitable distribution and access to services, and employment opportunities. This is evidenced by rundown town centers, urban sprawl, environmental degradation, and unsafe and dilapidated housing. Peri-urban areas, or areas in transition to become fully urbanized, are facing similar conditions, indicating that future community security and urban renewal projects should focus on communities in a range of geographic locations and stages of urbanization. Households living in these communities have limited access to income and employment, low skills, low wages, and primarily work in the informal sector. Youth unemployment is also a major problem and is increasingly linked to growing social problems and can create urban unrest.4

7. Consistently high rates of crime and violence, particularly in urban areas, have posed a serious obstacle to the formation of social and human capital, and contributed to limiting economic growth in Jamaica. The cost of productivity losses, for example, due to interpersonal violence related injuries accounted for 4 percent of Jamaica's GDP5. While homicide rates have declined from a peak rate of 62 per 100,000 inhabitants in 2009 to 39.8 per 100,000 in 2012, Jamaican homicide rates and other violent crime rates remain among the highest rates in the region6. The profile of those directly involved and affected by violent crime – perpetrators and victims alike – are typically young, unskilled, unemployed, and undereducated youth males ages 15-29 from vulnerable urban neighborhoods that suffer from higher rates of poverty,

3 IMF, (November 13, 2013). “Statement at the Conclusion of the IMF Staff Mission to Jamaica,” Press Release No. 13/446. 4 World Bank, (2008). Urban Poverty: A Global View. 5 An estimate of the direct cost of crime to Jamaica indicates health costs were 0.4 percent of GDP, costs in lost production were 0.2 percent of GDP, and expenditure on security was 3.1 percent of GDP, accounting for a total of 3.7 percent of GDP. It has been estimated that the direct medical cost of injuries due to interpersonal violence accounted for nearly 12 percent of Jamaica's total health expenditure in 2006, while productivity losses due to interpersonal violence related injuries accounted for approximately 4 percent of Jamaica’s GDP. 6 Despite the reduction in homicides, Jamaica still has the highest rate in the Caribbean Region and in Latin America it is only surpassed by El Salvador, Guatemala, Honduras and Venezuela. See OAS Observatory on Citizen Security, Sistema Regional de Indicadores Estandarizados de Convivencia y Seguridad Ciudadana and Jamaica Constabulary Force Crime Statistics.

unemployment, lower educational attainment, low social capital, and low levels of investment in public spaces.

8. In response, the Government of Jamaica (GoJ) developed a National Security Strategy (NSS), a National Crime Prevention and Community Safety Strategy (NCPCSS) and launched the Community Renewal Programme (CRP) in order to actively foster better coordination at national and sub-national or community levels. The NSS seeks to reduce violent crime, strengthen justice and the rule of law, increase effective delivery of social intervention programs, and promote the integration of democratic governance within the communities most at risk for crime. In line with this approach, the CRP provides a government platform for the coordination and enhancement of the delivery of government and civil society services to 100 volatile and vulnerable communities in the five most crime-affected parishes (Kingston and St. Andrew, St. Catherine, St. James and Clarendon).

9. The National Development Plan, “Vision 2030” highlights sustainable urban development as a key outcome in striving for a healthier environment, and calls for a holistic approach in national crime reduction efforts. To address both urban development challenges and those relating to crime and violence, Vision 2030 outlines specific strategies for issues on efficient planning systems, urban renewal, and affordable shelter, while also prioritizing the reduction of involvement of young people in crime, instilling a culture of law, and restoring public trust in protective services.

10. Partnerships with international development agencies also play a role in supporting sustainable urban renewal through infrastructure development and crime and violence prevention in Jamaica. The Inter-American Development Bank (IADB), Department for International Development (DFID), and the Canadian International Development Agency support the Citizen Security and Justice Programme (CSJP), the flagship crime prevention program for the GoJ, and with which the Integrated Community Development Project (ICDP) will closely coordinate. The U.S. Agency for International Development carries out a wide range of programs in Jamaica spanning the sectors of crime and violence, health, education and economic development. DFID also supports a range of community policing and deportee resettlement projects. Similarly, the European Union’s Poverty Reduction Program (PRP) aims to alleviate poverty through investment in basic infrastructure and education in over 50 vulnerable communities, while also promoting the active participation of community groups.

C. Higher Level Objectives to which the Project Contributes

11. The Integrated Community Development Project (ICDP) will build on the successful activities completed under the Inner City Basic Services for the Poor Project (ICBSP), which benefited over 60,000 people in 12 inner city communities. The proposed Project will empower 18 inner city communities to participate in and benefit from the development process. The project will work in accordance with Jamaica’s Community Renewal Programme, which supports the implementation of a holistic range of interventions in the most vulnerable and volatile communities in Jamaica. The ICDP will help transform these communities and help people live in an improved, healthy and secure environment.

12. The proposed project addresses the Bank’s defined goals to end extreme poverty globally within a generation, and to promote shared prosperity in the poorer segments of society. The project focus at the community level contributes to the two overarching goals insofar as it seeks to address issues beyond monetary dimensions of welfare. The project will be implemented in some of the country’s poorest communities, directly benefiting populations within the bottom 40 percent of the country, and promote income generation to foster economic development at the community level. The ICDP plays a role in making investments that improve opportunities for citizens through the provision of basic services and improvements in basic infrastructure such as educational facilities. These investments offer a window of opportunity for citizens to be empowered and to gain a voice and participate in economic, social, and political spheres of society.7

13. A sustainable path toward ending extreme poverty and promoting shared prosperity in Jamaica will require creating an inclusive society which has the appropriate institutions, structures, and processes that empower local communities and promotes government accountability.8 Relying on growth alone will not be enough; a range of actions from policies to well-designed micro-interventions will be essential to breaking the cycle of intergenerational poverty.9 The ICDP is a targeted intervention which will support communities which have long been underserved and will aim to promote shared prosperity across space and across generations. The project also supports the Millennium Development Goals “Cities without Slums” (Target 11), which specifically calls for significant improvement in the lives of at least 100 million slum dwellers by 2020.

14. The proposed operation is also fully aligned with the Bank’s strategic engagement with Jamaica. As the project represents the expansion of activities financed under the ICBSP, it is in- line with the current World Bank Group Jamaica Country Partnership Strategy (CPS) 2010-2013. It is equally informed by ongoing consultations on the forthcoming 2014-2017 CPS, whose overarching goal would be to help Jamaica build the foundation for sustainable inclusive growth in line with Jamaica’s National Development Plan10.

II. PROJECT DEVELOPMENT OBJECTIVE

A. PDO

15. The Project Development Objective is to enhance access to basic urban infrastructure and services, and contribute towards increased community safety in selected economically vulnerable and socially volatile inner city communities of Jamaica.

7 World Bank, (2013). “The World Bank Group Goals: End Extreme Poverty and Promote Shared Prosperity.” 8 Ibid. 9 Basu, Kaushik and C. Marks, (2013). “Shared Prosperity and Mitigation of Poverty: In Practice and in Precept,” World Bank Policy Research Working Paper 6700. 10 The National Development Plan, “Vision 2030”, consists of four national goals: (i) Jamaicans are empowered to achieve their fullest potential; (ii) the Jamaican society is safe, cohesive and just; (iii) Jamaica’s economy is prosperous; and (iv) Jamaica has a healthy natural environment.

B. Project Beneficiaries

16. On the basis of results of the Inner City Basic Services for the Poor Project, it is estimated that the ICDP will directly and indirectly benefit approximately 89,000 people across the project communities through the provision of basic infrastructure, improved access to services, and targeted crime and violence reduction programs. Within the selected communities the new project will target the following groups: (i) at risk males and unattached children, youth and young adults (males and females) with a particular focus on 15-29 year olds; (ii) in-school youth ages 12-18; (iii) female single headed households; (iv) gang members; (v) teenage parents; (vi) unemployed or irregularly employed community members; and (vii) families requiring counseling and civil support to access basic social services.

C. PDO Level Results Indicators

17. The achievement of the objective will be measured through a series of indicators that permit the quantification of improvements in (i) basic infrastructure and services, and (ii) social welfare and public safety (see Table 1). Additional details on the Results Framework are provided in Annex 1.

Table 1: PDO Results and Outcome Indicators

Development Outcome Intermediate Outcome Indicators Increased access to quality  Piped household water connections affected by services and improved basic rehabilitation works undertaken under the project (#) infrastructure for residents in  Households provided with access to rehabilitated or project areas (#) newly constructed sanitation facilities (#)  People in urban areas provided with access to regular solid waste collection under the project (#)  Solid waste skips installed in communities (#)  People with access to electricity by legal household connections (#)  Street lights installed or restored to working condition (#)  Paved road surfaces and rehabilitated/ constructed drainage (Km)  Schools with rehabilitated facilities (#)  Households with zinc fence replaced with permanent fencing (#)

Increased perception of  Persons who obtained civil registration documents (#)11 public safety for residents in  Conflicts mediated by certified mediators (#) project areas (%)  Reported incidents of violence and/or disruptive behavior involving students in and around school premises (#)  Persons who participated in educational and skills training program or activities(#)  Persons who participated in employment programs or activities (#)  Persons who obtained formal certifications relating to skills development (#)

III. PROJECT DESCRIPTION

18. The proposed project builds on the successful implementation of the Inner City Basic Services for the Poor Project (ICBSP). The ICBSP was approved by the World Bank in 2006 to respond to an accelerating urban decay and declining citizen security. The project sought to upgrade the physical infrastructure and enhance citizen security in 12 communities within the five Parishes which faced limited social amenities, inadequate access to basic services and high levels of poverty and incidence of crime. Specifically, the project encompassed activities aimed at improving the quality of life of community residents through improving access to services such as water, sanitation, solid waste collection, and drainage; and undertaking electricity regularization, road paving, and measures to enhance perceptions of safety. In parallel, the project undertook activities to promote security of tenure and the provision of financial services for community members. Importantly, the project supported the improvement in the integrity of crime data at the community level through a Japan Social Development Fund (JSDF) Grant for the development of the Jamaica Crime Observatory12.

19. An independent assessment of projects in Jamaica that focused on community security and transformation found that the ICBSP was unique in its focus on community basic infrastructure as a means to community security and transformation. The comprehensive approach to community development that the ICBSP has undertaken has been central to the results seen. Infrastructure is a key component in community transformation; improvements to infrastructure increase societal inclusion, job creation, access of state security forces to communities and access of community members to economic services outside their communities. In addition to increasing access to improved basic services, the ICBSP has enhanced public safety through mediation services, community capacity building, skills training and related social services. Given the gains of the ICBSP, and the demonstrable need for future programs that follow in the ICBSP’s footsteps, the ICDP is deemed necessary to capture the momentum of the

11 Includes, among others: Birth certificates, tax registration, personal identification. 12 The Jamaica Crime Observatory-Integrated Crime and Violence Information System is a surveillance system established to collect data on crime related activities throughout Jamaica. The establishment of the pilot Observatory, which was launched in 2011 and operative in 2012, offers the ability to measure changes in crime and violence rates and patterns. The system can also contribute to informed public policy on crime and violence by capturing information on underlying risk factors. The Observatory is housed by the Ministry of National Security as a key crime and violence prevention, intervention and control governance tool.

good work done under the current project and to replicate it in other inner city communities across Jamaica.

20. The project will benefit from the existing practice of the GoJ to carry out extensive social participation and consultation processes which are directly linked to well-established beneficiary feedback mechanisms. This process includes a review of the demographic and social characteristics of the beneficiaries, the capacity and status of the community based organization responsible for the project, participation by community members in needs identification, potential employment impact, and the accessibility of the project to people with disabilities. This methodology will be followed under the Project as part of the selection of sub- projects.

A. Project Components

21. The proposed project will finance four components, which will be implemented over a period of six years (for further details, see Annex 2).

22. Component 1: Basic Infrastructure and Access to Services (US$28 million). This component will develop infrastructure investments across project communities according to identified community priorities, including, inter alia: (i) widening, rehabilitating and paving existing roads; (ii) improving storm water drainage; (iii) installing water supply and sanitation household connections and promoting behavioral change for the use and maintenance of water supply and sanitation infrastructure; (iv) improving electricity connections and lighting through (1) the installation of street lighting, (2) the extension of the electricity network and regularization of illegal electricity connections, (3) promoting behavioral change for the use and maintenance of electricity connections and lighting, and (4) support environmentally sustainable lightning; (v) rehabilitating educational facilities; (vi) removing zinc fences and replacing with permanent structures; (vii) constructing community integrated spaces and mobile mediation centers; and (viii) improving the cleanliness of Project Communities through: (1) the provision of equipment, (2) the construction of skip enclosures around dumpsters, (3) the carrying out of cleanup and maintenance activities by Environmental Wardens, and (4) the provision of RB Incentives to: (A) the NSWMA for the provision of waste collection and recycling services, and (B) Community-Based Organizations and Environmental Wardens for the carrying out of litter management and collection; all located in RB Community Areas.

23. Component 2: Public Safety Enhancement and Alternative Livelihoods (US$7.2 million). As outlined in the National Crime Prevention and Community Safety Strategy, a priority area of intervention for the GoJ is the development and strengthening of programs that focus on high risk groups (particularly youth amongst whom unemployment rates are notably high). This component will focus on supporting the development and roll-out of programs that focus on key safety concerns and high risk groups through, inter alia: (i) implementing the “Violence Interrupter” programs13, and (ii) strengthening school and community based violence prevention interventions in Selected Communities, including, inter alia: (1) the Safe Passages Program; (2) the Programme for Alternative Student Support; and (3) school-community and

13 Interventions focused on strengthening crisis management, trauma response, counseling mediation, community outreach and mobilization working with most at risk youth (see Annex 2 for details).

after-school programs. Alternative livelihoods will be supported through, inter alia: (i) implementing programs to engage youth in leadership and civic participation; (ii) improving participation in community cleanliness through: (1) implementing cleanup programs, and (2) strengthening public awareness programs to improve the cleanliness of Project Communities; (iii) strengthening micro-enterprises through: (1) designing a skills and knowledge transfer program, and (2) providing training in the following areas: business plan development, operations, accounting, marketing, human resources and finance; and (iv) implementing youth education and recreation programs (selected pursuant to the criteria set forth in the Project Operational Manual) to enhance learning and develop social and conflict mediation skills.

24. Component 3: Institutional Strengthening for Urban Management and Public Safety (US$2.69 million). This component will support institutional strengthening activities related to urban management through, inter alia: Carrying out capacity building activities for selected entities of the GoJ responsible for urban management through, inter alia: (a) providing technical assistance to the Ministry of Transport, Works and Housing to identify options for low-income housing in densely populated areas, including the development of a strategy to incorporate the private sector and NGOs in low-income housing development; (b) providing equipment and technical assistance to the NLA through: (1) improving the systems to pre-check survey plans and cadastral maps for the general registration of land titles, and (2) preparing a national policy on land regularization; (c) preparing an urban renewal plan for communities in and around downtown Kingston, including actions to address poor infrastructure and housing; (d) preparing a strategy for the renewal of inner city communities considering infrastructure and housing stock; and (e) carrying out capacity building activities, as required, for governmental agencies responsible for the operation and maintenance of basic infrastructure, including: roads, water pipelines, sanitation facilities, drainage works, educational facilities, community centers, public spaces, skips and drums. This component will also support institutional strengthening activities related to public safety through, inter alia: carrying out capacity building activities for selected entities of the country responsible for public safety through, inter alia: (a) improving the coverage, range and distribution of data collected by the Crime Observatory, including, inter alia: (1) expanding coverage, (2) improving the software to analyze data collected, (3) carrying out capacity building activities for staff to analyze and disseminate a greater volume of information, (4) carrying out two Victimization Surveys, and (5) updating existing community profiles through the inclusion of new data on crime and violence and outreach to communities to obtain information; (b) strengthening the governmental agencies’ capacity to: (1) carry out impact evaluation and evidence-based crime and violence reduction interventions; and (2) collect public safety data; and (c) providing training to community mobilizers and para-professionals for the incorporation of evidence-based principles and approaches for the implementation of those programs that focus on key safety concerns and high risk programs, which are indicated above under Component 2.

25. Component 4: Project Administration (US$4 million). This component will support program management through inter alia: (a) carrying out Project audits; (b) carrying out the financial management and procurement requirements under the Project; (c) monitoring and evaluation of Project activities; (d) providing equipment and training for the Project Implementation Unit (PIU); (e) carrying out workshops and outreach activities to promote positive environmental and social behavior related to the Project; (f) hiring an Independent

Verification Agent for purposes of the provision of RB Incentives under component 1 of the project; (g) providing technical assistance to support: (i) crime and violence prevention activities under the Project; (ii) environmental and social management under the Project; and (iii) financial and procurement management under the Project; and (h) financing Operating Costs.

B. Project Financing

26. The lending instrument is Investment Project Financing in the amount of US$42.0 million to the Government of Jamaica. The GoJ selected a IFL Variable Spread Loan, with a grace period of 5.5 years and a repayment term of 29.5 years, linked to commitment, with level repayment, all conversion options (currency, interest rate and caps/collars), and Front-end Fee and Caps/Collar premium capitalized. In selecting financial terms, the GoJ considered the external debt dynamics, including the debt servicing profile, maturity structure and interest rate structure. It was equally ensured that the terms selected were consistent with the Debt Management Strategy objectives.

Table 2: Project Cost and Financing

Project cost IBRD or IDA Project Components Financing (%) (Million US$) Financing 1. Basic Infrastructure and Access to 28 IBRD 100 Services IBRD 100 2. Public Safety Enhancement and 7.2 Alternative Livelihoods IBRD 100 3. Institutional Strengthening for Urban 2.69 Management and Public Safety IBRD 100 4. Project Administration 4 Total Costs ______41.89

Total Project Costs 41.89 IBRD 100 Front-End Fees 0.105 100 Total Financing Required 42 IBRD 100

C. Lessons Learned and Reflected in the Project Design

27. The World Bank has a long history of involvement in urban upgrading projects14 and in a range of research and policy on violence prevention projects which have collectively demonstrated that quality of life can be improved through realistic policies, investments and implementation processes. The design of this operation takes into account those lessons learned from 30 years of global knowledge in these areas, as well as specific experience in

14 See: (i) World Bank, (2002). “Lessons on Urban Upgrading,” Thematic Group on Services to the Urban Poor, Urban Notes No. 3; (ii) Imparato, Ivo and Jeff Ruster (2003). “Summary of Slum Upgrading and Participation: Lessons From Latin America”, World Bank; (iii) World Bank, (2000). “KIP: Successful Upgrading with Local Commitment,” Interview with Chris Banes Municipal Engineer at the World Bank.

Jamaica emerging from the Bank’s first study on urban violence carried out in 199715 and the ICBSP. These include: i. Communities must participate: Ideally, large scale upgrading programs need to find ways to help the poor move from being powerless to inclusion; from vulnerability to assets; from violence to security. ii. Improving basic services, infrastructure, and promoting mediation and conflict resolution is the necessary base: Improving socioeconomic equality calls for the scaling-up of projects, which requires careful planning for a sequence of actions which collectively influence overall project expenditures and the associated implementation period. iii. Effective national level policies on land regularization are required to facilitate increased issuance of land titles to the urban poor: Alternative options for increasing tenure security could be supported through the preparation of operational guidelines on simplification of the process of issuing title, by separating the requirement for basic infrastructure from the issuance of title, or the preparation of guidelines for establishment of community based governance structures to support regularization of land and informal dwellings. iv. Catalyze sectoral service providers to ensure institutional commitment and enhance sustainability: Long term institutional support to beneficiary communities from priority service providers is influenced by a number of factors including the capacity and resources of implementing entities for operations and maintenance, and cost recovery mechanisms. For investments related to service provision involving operating costs, consideration of the financial stability of the provider should be taken into account, while for infrastructure works consideration must be given to the capacity of the beneficiary agency to adequately maintain the investment. v. Integrated and evidence based approaches: A range of strategies are now routinely advocated as part of a portfolio of coordinated violence and crime approaches for development agencies; no single intervention or sectoral approach can solve the problem. Uptake and focus on the adaptation and implementation of rigorously evaluated strategies, along with other promising and innovative approaches can yield significant results.16

IV. IMPLEMENTATION

A. Institutional and Implementation Arrangements

28. The project implementing entity, the Jamaica Social Investment Fund (JSIF), was established in 1996 to reduce poverty and help create an environment for sustainable development. The JSIF is a limited liability company established as a component of the GoJ's National Poverty Alleviation Strategy. The Fund was designed primarily to channel resources to small-scaled community based projects. The JSIF executed the Inner City Basic Services for the Poor Project financed by the World Bank and the Government of Jamaica. The Fund will remain as the selected implementing entity for the Integrated Community Development Project.

15 Moser, Carolyn and Jeremy Holland, (1997). Urban Poverty and Violence in Jamaica, World Bank. 16 World Bank Conceptual Framework for Citizen Security (under development).

29. The JSIF is well positioned to undertake implementation of the proposed project as they possess valuable knowledge of lessons learnt and best practices for implementation developed under the ICBSP and other projects. Since inception, the JSIF has completed over 1,000 subprojects in vulnerable communities and delivered these to some 1.6 million underserved beneficiaries. Thus, the JSIF has in the past 17 years been laying a solid foundation to support Jamaica’s development. For each of those years, at least 78 percent of the JSIF’s annual budget has gone directly into poor communities in the form of implemented subprojects. Qualifying their capacity to handle this project, the JSIF has a standard Project Operational Manual which has been modified for the ICDP and will guide project implementation.

30. In addition to the JSIF, there are multiple stakeholders associated with the Integrated Community Development Project. These include: the Planning Institute of Jamaica (PIOJ), the Social Development Commission (SDC), the Ministry of National Security (MNS), the National Solid Waste Management Authority (NSWMA), the National Water Commission (NWC), the Jamaica Public Service Company (JPS), Ministry of Education (MoE) and Ministry of Health (MoH). A detailed description of each entity and their respective role in the project is contained in Annex 3.

B. Results Monitoring and Evaluation

31. Overall responsibility for monitoring and evaluation of the Project will lie with the JSIF, which will consolidate all reports and provide information about the progress and project execution to the Bank, including qualitative and quantitative information on the execution of selected interventions, procurement and contractual decisions, accounting and financial recording, progress of outcomes, outputs and monitoring of indicators, as well as other operational and administrative matters. The JSIF’s Monitoring and Evaluation Unit will be assisted in the overall process by other institutions involved in the execution of the Project; MNS, NSWMA, NWC, JPS and specialized consultants, as required. The Project Operational Manual will provide specific details regarding monitoring and evaluation responsibilities, including data collection requirements, timing and use of the information. The Results Framework is presented in Annex 1 and details on the monitoring and evaluation arrangements are provided in Annex 3.

C. Sustainability

32. The main factors associated with the sustainability of project interventions can be organized around three key areas:

Infrastructure and Access to Basic Services: For investments related to service provision involving operating costs, assessment of eligibility will involve consideration of the financial stability of the provider and the sustainability of the investment. For sub-projects involving financing of infrastructure, eligibility for funding will be tied to the capacity of the receiving agency to adequately maintain the investment.

Public Safety: Providing security and reducing crime and violence in the ICDP communities will be important for the sustainability of the projects investments. The Jamaica Crime Observatory will conduct the data collection and analysis to determine the relative change in perception of

safety in these communities. Also, the project will support the sustainability of the National Crime Prevention and Community Safety Strategy through MNS and focus on developing and strengthening public safety programs.

Employment Generation: In an effort to tackle a youth unemployment reaching 38 percent in 2013, the ICDP will support employment generation activities through two interventions directly associated with the project, and two which link selected beneficiaries to related World Bank financed operations in Jamaica as described below.

i. Public works: This would be a targeted program that provides temporary employment for unskilled workers, using labor-intensive methods, to maximize the number of people that can be employed. The urban upgrading activities planned under the ICDP could offer employment opportunities to members from the community.17 ii. Youth-at-risk: The target group is youth, both male and female, who are neither working nor in school. This approach seeks to connect these youth to the ICDP recycling program in their communities. The aim is to provide an alternative for these young people and reduce their engagement in risky behavior that will lead to crime and violence. iii. Youth in school: Through collaboration with the Ministry of Education (MoE), selected students from the ICBSP and ICDP will be linked to the Jamaica Youth Employment in Digital and Creative Industries Project (P148013) which aims to support youth employment in the virtual global economy and youth entrepreneurship and self- employment. The project plans to set-up a scholarship fund to facilitate the participation of youth from the bottom 40 percent for trainings and programs planned under the project and for participation in international training programs abroad. iv. Micro-enterprises: The target group will initially be those micro-enterprises from the ICBSP which have shown a high level of interest in receiving additional training and support for their businesses. This will be linked to the Jamaica Foundations for Competitiveness and Growth Project (P147665) which aims to improve the investment climate, mobilize private sector investment for job creation and support training and financing of Small and Medium Size Enterprises (SMEs). The project plans to design a skills and knowledge transfer program. Potential opportunities for micro-enterprises will be explored to support training in areas such as, business plan development, operations, accounting, marketing, human resources, and finance.

V. KEY RISKS AND MITIGATION MEASURES

A. Risk Ratings Summary Table

Risk Category Rating - Stakeholder Risk High Implementing Agency Risk

17 Note: Jamaica launched the Jamaica Emergency Employment Program (JEEP) to respond to some of the citizen’s chronic unemployment problems, in particular those in the lower socio-economic stratum and from under-served communities. The program has undertaken a variety of activities including drain cleaning, construction of a park, as well as construction of a gully and drains. Government of Jamaica, http://www.mtw.gov.jm/JEEP/jeep.aspx.

Risk Category Rating - Capacity Moderate - Governance Low Project Risk - Design Low - Social and Environmental Low - Program and Donor Low - Delivery Monitoring and Sustainability Low Overall Implementation Risk Moderate

B. Overall Risk Rating Explanation

33. The risk rating for implementation of the Project is Moderate. Stakeholder risk is considered high given that the targeted communities are some of Jamaica’s most vulnerable and volatile. The risk of increased crime and violence in project areas, and the associated impact on the potential for project implementation is mitigated by the ongoing presence of GoJ community organizers (JSIF, CSJP, SDC) and their work with local ‘area leaders’ and community volunteers, to attempt to ensure that periodic violence does not escalate or interfere with project activities. Despite these efforts, the potential for social unrest within the project communities remains a significant issue which is driven by a multitude of factors, many of which are beyond the control of the project. As such the overall success of the project, and the associated attainment of defined outcomes, will be influenced by the relative social stability of targeted communities.

34. The overall risk rating is considered to be moderate given that the project is directly aligned with the ICBSP, which has been successful in achieving its defined objectives yet will be implemented within a country and community environment of several noted risks. The implementing agency, the JSIF, has a strong track record in implementing World Bank projects and broadly has the institutional capacity to adequately address safeguard and fiduciary requirements.

VI. APPRAISAL SUMMARY

A. Economic Analysis

35. The economic analysis of the Integrated Community Development Project in Jamaica was carried out for works under component 1, which shares 67 percent of the total costs. The evaluation was made for works in the following sectors: (i) water; (ii) sanitation; (iii) drainage; and (iv) roads. The evaluation was carried out from an economic perspective, as it is not a revenue-generated project. The evaluation was complemented with sensitivity, and risk analyses. Sensitivity and risk analyses show a robust Project with high probability of yielding positive economic returns.

36. The project will have a positive impact on socio-economic development with beneficiary communities, as it will generate more economic benefits than expected costs. The benefits in drainage threefold the costs, in water, benefits are twice as much as costs, and the returns are higher than 35 percent in both cases. For sanitation, the project will be viable for the alternative that includes sewer connection and only when investment costs per household are reduced by 25 percent, that is up to US$2,000. All other sanitation subprojects with on-site disposal systems, such as septic tanks, tile field, and soak away (pit tank) were not viable.

Table 3: Costs and Benefits of Water Supply and Sanitation Investments Present Value of Flows (US$) Results Costs Benefits Net Benefit IRR Water (Results per household) 329 632 303 36% Sanitation (Results per household) 2,748 2,049 (699) 5% Drainage (Results per Km) Alternative 1: v-drain 85,620 204,927 119,306 48% Alternative 2: u-drain 109,194 204,927 95,732 41% Alternative 3: Curb & Channel 68,664 204,927 136,262 60%

37. Rationale for public sector financing and World Bank value added. Public provision is the best way to coordinate Government’s efforts and engage the community to assure sustainability of the works. The Bank also brings to bear valued convening power which in the Jamaica’s current development climate of numerous international and donor agencies, supports more strategic targeting of related projects. Similarly, the Bank’s emphasis on the adoption of an integrated and multisectoral approach for the project, in combination with being a longstanding partner to the GoJ for rigorous implementation support, further demonstrates the value-added of the institution’s engagement.

B. Technical

38. The proposed Project relies on approaches, methodologies, technical designs and technologies appropriate for the Jamaican context and is based on successful approaches and methodologies to community upgrading and crime and violence prevention. Simple design, labor-intensive methods for works and community participation will be favored where possible. Capacity building activities for Government agencies will directly support implementation of the Project.

C. Financial Management

39. A Financial Management Assessment (FMA) was carried out to evaluate the adequacy of financial management (FM) arrangements under the Project. All FM will be carried out by the Project Implementing Entity, JSIF. The JSIF is currently implementing two World Bank- financed projects. The findings of the Assessment are that there are areas that need strengthening based on the moderately satisfactory performance under the existing two projects. The Bank agreed an action plan with JSIF for strengthening its financial management capacity and with implementation of the action plan, the financial management capacity of JSIF will meet the requirements of OP/BP 10.02 (see Annex 3 for further details and also the FM action plan).

D. Procurement

40. The Bank undertook a Procurement Assessment to determine the JSIF’s capacity to implement procurement actions for the Project. All Procurement will be carried out by the Project Implementing Entity, JSIF. The findings of the Assessment are that there is adequate capacity to carry out the procurement in a satisfactory manner. These findings are supported by the satisfactory implementation by JSIF of ICDP project.

41. Procurement for the proposed project would be carried out in accordance with the World Bank’s “Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits & Grants by World Bank Borrowers”, dated January 2011 (referred to as GL); and “Guidelines: Selection and Employment of Consultants by World Bank Borrowers”, dated January 2011; and the provisions stipulated in the Financing Agreement. Other than Procurement under Community Participation as per GL 3.19, each contract to be financed by the loan, the different procurement methods or consultant selection methods, the need for prequalification, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank project team in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. The Project Operational Manual describes detailed procurement procedures to be used for each procurement method, and the standard bidding documents (SBDs) and model contracts are posted on the web site worldbank.org.

E. Social

42. The wider social impact of the project will be beneficial – bringing needed basic services to the poorest communities in Jamaica, while simultaneously addressing vulnerability to crime and violence. The positive social impacts will be further strengthened by building on the JSIF’s and the SDC’s state of the art participatory planning and social management methodologies. In terms of citizen engagement, comprehensive community profiles and plans have already been prepared for a number of communities. Where these plans are out of date, JSIF will conduct participatory stakeholder workshops to confirm community investment priorities. During implementation, the JSIF will continue to build on its comprehensive social screening process that includes key data on socio-demographic characteristics of beneficiaries and the potential employment impact of the project. This process also captures data on the gender breakdown of beneficiaries, with the JSIF social officers actively promoting the inclusion of women as employees on construction contracts. The JSIF will also build on its existing citizen engagement and complaints handling process during implementation, which includes public meetings notifying communities on potential disruption, and a robust system of monitoring complaints lodged through the management information system. They will similarly continue to apply their approach to maximize the employment impact of the project, by appointing community based employment coordinators to liaise with construction contractors. The social sustainability of infrastructure sub-projects financed will be strengthened by the preparation of maintenance plans and the establishment of community based maintenance committees (made up of community members with skills relevant to the maintenance of the asset).

43. Since the project will support a range of sub-projects, some of which may require minor land acquisition or displacement of informal vendors, the Bank's Policy on Involuntary Resettlement (OP/BP 4.12) has been triggered and a Resettlement Policy Framework (disclosed December 5, 2013) has been prepared to mitigate any associated risks. Under ICBSP, strong systems were put in place for identifying and managing resettlement impacts, and experience developed in preparing and disclosing resettlement action plans. Some minor revisions to the land acquisition and resettlement policy framework prepared for the ICBSP were made, as well as the sub-project screening process (in order to better capture the volume and nature of land donations).

F. Environment

44. This Program has been classified as Category B in accordance with World Bank policy on Environmental Assessments (OP/BP 4.01). It is concluded that environmental risks are considered low and it is highly likely that they will be managed appropriately. The type of infrastructure works to be included in the ICDP portfolio will not differ substantially than those performed under ICBSP. One of the most successful works in ICBSP was the Integrated Infrastructure Project (IIP) which consists of road repaving, water and sewer main replacement, storm drains if necessary, and zinc fence removal with block wall construction.

45. Infrastructure works would be similar to the portfolio of ICBSP subprojects, and would not involve landfill design, dumpsite remediation, or other major works with potentially significant or complex environmental components. It is concluded that no major solid waste, liquid waste or drainage projects are being considered; as well, such projects would be excluded during screening. Impacts during construction will be minimized by the small quantities of construction materials being handled, the limited scale of the works, the involvement of communities in planning and implementation, by contracting conditions, and by supervision and oversight by the contractor, by the JSIF, and by the communities themselves.

46. Because the specific subproject locations have yet to be defined, an Environmental Management Framework (EMF) (disclosed December 6, 2013) was adopted. The implementing agency (the JSIF) has abundant experience in utilizing EMF screening procedures to develop site specific Environmental Management Plans, as was done under ICBSP with effective results, in accordance with the policy on Environmental Assessment (OP/BP 4.01). The EMF for the ICDP project has been updated to reflect current JSIF practice, including the improvements in the EMS and the application of the ISO process. Elements of the EMS Procedures Manual will be integrated into the EMF to provide an updated description of the JSIF's environmental assessment and management process.

47. Relative to the environmental safeguards triggered by the program, the following analysis is presented:

 The JSIF’s existing EMS will provide the most appropriate method for assessment and development of site specific Environmental Management Plans (EMPs), using the same approach as ICBSP, for which the results have been effective and tailored to the environmental and social context of the subprojects being undertaken, in accordance with the World Bank policy on Environmental Assessment (OP/BP 4.01).

 The current JSIF EMS accounts for natural habitats in peri-urban and urban areas, which are screened and protected in accordance with the World Bank Policy on Natural Habitats (OP/BP 4.04). Effects on natural habitats are specifically excluded from the list of eligible projects (wetlands, parks), which are unlikely to be encountered given the project setting (urban development). Therefore, the Policy was not triggered.  The JSIF project team confirmed that there will be no sub-projects involving harvesting or management of forest resources, therefore the World Bank Policy on Forests (OP/BP 4.36) was not triggered.  Termite foundation treatments and other pesticide uses are negligible, and the JSIF’s EMP requires these activities to be performed by registered, licensed operations; therefore, the World Bank policy on Pest Management (OP 4.09) was not triggered.  Historical and cultural properties may be encountered, either in rehabilitation or excavation in settled areas; therefore, the Physical Cultural Resources Policy (OP/BP 4.11) was triggered as a precaution. Screening of projects, permitting through National Heritage Trust, and chance find procedures have all been built into subprojects through the EMF.

Annex 1: Results Framework and Monitoring JAMAICA: Integrated Community Development Project (P146460)

Project Outcome Baseline Target Values Data Collection and Reporting Indicators YR1 YR2 YR3 YR4 YR5 YR 6 Frequency and Data Collection Responsibility Reports Instruments for Data Collection 1. People with 0 4,200 6,000 20,000 45,000 75,000 80,000 JSIF Semi- Annual access to quality services and Surveys Respective JSIF Project improved basic Consultants’ Site Ministries, Reports infrastructure in Reports Departments and project areas (#) Agencies (MDA)

2. People TBD 30 30 45 45 45 75 3 Surveys indicating an throughout increased Project Life perception of Surveys JSIF public safety in JSIF Project ICDP communities Reports (%) Intermediate Outcome Indicators Component 1 Service Provision 3. Piped 0 0 50 300 600 900 1,250 household water NWC connections Semi-Annual Management JSIF affected by Information rehabilitation JSIF Project Systems (MIS) National Water works undertaken Reports Consultants’ Site Commission under the project Reports (#)

4. Households 0 0 100 200 350 500 600 provided with Semi-Annual access to JSIF Surveys rehabilitated or JSIF Project Consultants’ Site newly constructed National Water Reports Reports sanitation facilities Commission

(#)

Project Outcome Baseline Target Values Data Collection and Reporting Indicators YR1 YR2 YR3 YR4 YR5 YR 6 Frequency and Data Collection Responsibility Reports Instruments for Data Collection 5. People in 0 0 10,000 20,000 30,000 40,000 50,000 Semi-Annual urban areas Surveys provided with 1. JSIF Project (household and JSIF access to regular Reports line solid waste 2. Report from ministry/agency) National Solid collection under the the National Waste project (#) Solid Waste Management Management Authority 6. Solid waste 0 30 50 60 60 60 60 JSIF Semi-Annual skips installed in Surveys communities (#) Consultants’ Site National Solid JSIF Project Reports Waste Reports Management 7. People with 9,131 9,131 9,430 9,730 10,000 10,300 10,300 Semi-Annual access to electricity 1. JSIF Project Surveys JSIF by legal household Reports JPS MIS connections (#) 2. Report from Consultants’ Site Jamaica Public the Jamaica Reports Service Co. Ltd. Public Service Basic Infrastructure 8. Street lights 3,500 3,500 3,512 3,532 3,560 3,572 3,572 Semi-Annual JSIF installed or restored 1.JSIF Project to working Reports Consultants’ Site Jamaica Public condition (#) 2. Report from Reports Service / Parish the Jamaica Councils Public Service 9. Paved road 0 0 1.5 15 25 35 40 Semi-Annual JSIF surfaces and 1. JSIF project rehabilitated/ Reports Consultants’ Site Parish constructed 2. Report from Reports Council/Ministry drainage (Km) the Respective of Local Parish Council Government 10. Schools with 0 0 1 7 15 18 18 Semi-Annual rehabilitated 1. JSIF Project JSIF Consultants’ Site facilities (#) Reports Reports 2. Report from Ministry of Surveys the Ministry of Education Education

Project Outcome Baseline Target Values Data Collection and Reporting Indicators YR1 YR2 YR3 YR4 YR5 YR 6 Frequency and Data Collection Responsibility Reports Instruments for Data Collection 11. Households 0 300 1,000 2,500 3,500 4,000 4,000 1.JSIF project with zinc fence Reports Consultants’ Site JSIF replaced with 2.Report from Reports permanent fencing the Respective Surveys Parish Councils (#) Parish Council Component 2 Public Safety Enhancement Semi-Annual JSIF 12. Persons who Registrar obtained civil Generals 0 500 1,500 3,500 5,000 5,500 6,000 JSIF Project Registrar registration Department MIS Reports General’s documents (#) Surveys Department 13. Conflicts Annually JSIF mediated by certified mediators Monthly

(#) 400 400 405 408 415 420 425 Reports from Registers/Logs Dispute Dispute Resolution Resolution Foundation Foundation 14. Reported incidents of violence and/or JCF Registers/Logs disruptive behavior 245 245 240 230 210 200 185 Annually MoE Reports involving students MoE in and around school premises (#) Alternative Livelihoods 15. Persons who Consultants’ participated in Semi-Annual Reports JSIF educational and JSIF MIS skills training 0 400 1,100 2,500 4,000 4,500 4,500 JSIF Project JSIF Database of Relevant Training program or Reports Trainees Institutes activities(#) Surveys

16. Persons who Semi-Annual JSIF participated in Consultant’s Site employment 0 15 85 700 1,500 2,500 3,000 JSIF Project Reports Relevant Training programs or Reports Institutes and activities (#) Organizations

Project Outcome Baseline Target Values Data Collection and Reporting Indicators YR1 YR2 YR3 YR4 YR5 YR 6 Frequency and Data Collection Responsibility Reports Instruments for Data Collection 17. Persons who Semi-Annual Consultants’ / obtained formal JSIF Contracted certifications 500 0 20 100 200 350 500 JSIF Project Institutions’ relating to skills Relevant Training Reports Reports development (#) Institutes

Component 3 18. Requests for E-mailed Semi-Annual Crime Observatory Requests data for research, Jamaica Crime Report from planning, decision- Observatory MNS on number Ministry of making and 20 23 27 32 45 52 55 Website (data on of requests for National Security service delivery (#) unique visitors Crime and their Observatory research Data purposes) 19. Local government employees and Annual JSIF CBOs trained in 0 0 5 10 18 30 40 JSIF Project Registers project related Reports Parish Councils urban management, and public safety (#)

Note: Numbers 3 and 5 are Core Indicators.

Annex 2: Detailed Project Description JAMAICA: Integrated Community Development Project (P146460)

1. The project will strengthen and further expand the objectives of the successful Jamaica Inner City Basic Services Project. The related activities encompassed under each component are hinged on the basic tenets of enhancing the quality of access to services for communities, transforming the physical environment within these communities, enhancing citizen security and strengthening institutional capacities for urban management and crime and violence reduction. Broadly, the ICDP is consistent in relative sizing of investments per community as under the ICBSP, and while the project will strive for equity in investments, it is recognized that the varying needs of each community and the associated costs will ultimately determine the level of investments made. Furthermore it is recognized that the needs for physical upgrading and targeted crime and violence reduction programs will outmatch the available funding. Nonetheless, and with a view to maximizing the number of project beneficiaries, the investments are deemed to be critically important to initiating a process of community transformation. The proposed project will finance four components, described below.

2. Component 1: Basic Infrastructure and Access to Services (US$28 million). In Jamaica, the investments in basic services will expand opportunities to people in 18 inner city communities. Improvements in these communities can have positive externalities from a physical and social point of view. Urban upgrading will work towards transforming these communities to be part of the city; it will help improve the quality of life of households residing there along with supporting improvements in their economic and social activities. In line with the World Bank’s strategy to reduce poverty and promote shared prosperity this Project will continue to build on ICBSP and work towards a sustainable increase in the well-being of the poorer segments of society. People living in these communities will be able to live in an improved, healthy and secure environment. The activities outlined in the Project are also vital to the achievement of Jamaica’s National Development Plan Vision 2030, in particular under the Sustainable Urban and Rural Development National Outcome, to create a framework for urban and rural development that supports the economic and social development of all parishes to achieve their full potential, thereby creating sustainable communities.18 This component will support specific infrastructure investments across project communities according to identified community priority plans. Offsite infrastructure may also be supported where the investment will enhance the level of access to basic services by the communities and the ability of the respective agencies to provide the service.

3. Road works – 50 percent of the ICDP communities are in need of immediate road works and even more will need such investments to correct poor drainage19. This activity will support the widening, rehabilitation and paving of existing roads. Road investments will improve the communities’ internal transit as well as connections with the broader city. Additional spillover effects could potentially include reduced travel time and increased mobility for laborers, as well as improvements in collection of solid waste from households. Road improvements can also contribute to enhancing the visual and physical connectedness of the community, and making areas previously out of reach more accessible, such as health and education centers.

18 Jamaica National Development Plan “Vision 2030” Executive Summary. 19 Social Development Committee Community Profiles and Community Priority Plans 2009-2013.

4. Drainage - More than half of the ICDP communities indicated that flooding was a major environmental concern20. For storm water drainage, a number of factors contribute to problems of flooding in target communities during periods of heavy rainfall. These include a complete lack of drainage infrastructure, poorly maintained drainage systems, or the accumulation of solid waste in drain receptors causing blockage. This activity will support the installation, rehabilitation and effective maintenance of drainage infrastructure within the communities.

5. Water supply and sanitation - This activity includes the extension of water and sanitation connections to households from rehabilitated or newly constructed street water and sanitation mains located in project areas. The activity also promotes behavioral change for the use and maintenance of water supply and sanitation infrastructure. Existing evidence suggests water and sanitation improvements can improve both health and socio-economic wellbeing, such as reductions in rates of diarrheal diseases following improved water supply and excreta disposal.21 Having access to water and improved sanitation can also help to reduce the number of days lost with respect to formal and informal employment, school attendance, or other productive activities in the household, as a result of time saved from illness and accessing safe water and sanitation.22 In addition more time can be reallocated towards income-generating activities, instead of collecting water.

6. Formalization of household electrical connections and lighting - This activity includes the installation of street lighting, the extension of the electricity network and the regularization of illegal connections. Installing street lighting helps to improve public spaces, by reducing the incidence of facilitating factors such as dark or abandoned areas, that are difficult for citizens to control and which become unsafe.23 Well lit areas help promote the presence of the community in the streets which can help to improve neighborhood safety. To enhance sustainability of the investments this activity will also include social marketing to promote behavior change within the beneficiary communities. The activity will also support environmentally sustainable lighting for strategic partnerships to provide energy efficient lighting in order to promote lower energy consumption within beneficiary communities.

7. Rehabilitation of educational facilities/Physical improvements to schools - This activity includes rehabilitation and physical improvements of educational facilities. Since violence has multiple causes multi-sector interventions are required. This activity in particular will help to improve the educational and recreational environment for students, for example by promoting activities in these facilities, to engage the community through cultural, sporting, or social events.24 The management of public spaces, such as educational facilities is important, as it is related to the “broken windows” theory of crime prevention, which holds that more opportunistic crime is committed in deteriorated areas.25

20 Social Development Committee Community Profiles and Community Priority Plans 2009-2013. 21 Turley, Ruth (2013). "Slum upgrading strategies involving physical environment and infrastructure interventions and their effects on health and socio-economic outcomes". Cochrane database of systematic reviews. 22 Ibid. 23 Inter-American Development Bank, (2010). Building Cities: Neighbourhood Upgrading and Urban Quality of Life. 24 Ibid. 25 Ibid.

8. Zinc fence removal - During ICBSP replacing zinc fencing with appropriate permanent structures was identified by community members as a means to enhance public safety and to overcome the perception that the community is informal. The upgrading of public spaces through this activity can help create an atmosphere that improves urban security and reduces crime by enhancing the aesthetic appeal of communities through the incorporation of Crime Prevention through Environmental Design (CPTED) principles.26

9. Community center construction - The activity includes the construction of basic multi- purpose community centers in project areas, to provide a space for interaction and strengthening of social relationships among community members, promote greater social inclusion, and enhance social service delivery to the project priority populations. These services will include conflict mitigation and mediation, provision of positive opportunities for children, youth and young adults such as youth education, skills development, arts and recreation and related capacity building programs, to steer youth away from the streets, delinquency and other risky behaviors. To ensure an integrated approach to community center construction the project will also support the design of associated programmatic content, and oversight to be offered in these centers. Where more appropriate this activity will support the provision of mobile mediation centers which will make available a space from which the above mentioned activities will be supported.

10. Litter management, waste collection and recycling – The activity includes the construction of skip enclosures, provision of skips and drums, provision of collection trucks for NSWMA, provision of equipment for primary collection in the community (waste carts), and composting and recycling equipment. A portion of the trucks will be provided to NSWMA with good performance (as verified through an Independent Verification Agent-IVA-) for collection in the communities (see description of the Results Based Financing mechanism in Annex 3).

11. Results based incentives – This activity supports the implementation of the above-mentioned litter management, waste collection and recycling activities, and will provide payments for salary supplements to environmental wardens and to support community programs of the CBOs in exchange for good performance (as verified through an IVA). They will be responsible for keeping the communities clean and ensuring proper maintenance of the skips (see description of the Results Based Financing mechanism in Annex 3). The costs of monitoring and verification will also be covered under this activity.

12. Component 2: Public Safety Enhancement and Alternative Livelihoods (US$7.2 million). The Public Safety Enhancement and Alternative Livelihood Component will provide communities with a menu of possible community-based crime and violence prevention interventions along with a variety of initiatives focused on enhancing skills in areas relating to community works, basic services, and emerging growth sectors of the economy. Trained community facilitators will guide the community through a diagnostic process using: (i) the community safety profiles developed with the support of SDC and; (ii) up-to-date information collected through the Crime Observatory. This facilitated process will help the community identify key safety concerns and groups at higher risk. It will also provide community members with critical information on the most suitable programs or combination of interventions that can address the key concerns identified. Based on the problem analysis and menu of programs

26 Ibid.

outlined below, community committees will identify and select the most appropriate combination of activities to be implemented in their communities.

Public Safety Enhancement

13. Violence Interrupter Programs: As outlined in the National Crime Prevention and Community Safety Strategy, a priority area of intervention for GoJ is the development and strengthening of programs and strategies that focus on high risk groups (particularly youth ages 15-24), their peers, and families, as well as school based initiatives. The ICDP will seek to support existing programs that have proven effective and will advance the project’s objectives involving supporting youth at risk to access a range of complimentary services as needed including education, health, counseling, referral to employment or others.

14. Education Programs: ICDP will also focus on strengthening and supporting the planning, coordination and delivery of a set of promising, ongoing school-based violence prevention interventions in targeted communities drawing on the School-Based Violence prevention tool-kit developed with World Bank support. It is important to highlight the fact that school-based violence prevention programs can also be implemented at individual, school and community levels. Communities will be able to use project funding to implement capacity building activities at the school level for the programs highlighted below. Most of them will include a combination of activities, depending on the needs and assets of each school as follows:

(i) Safe Passages Program: focuses on reducing opportunities for the commission of violence and crime by patrolling routes to and from school. The A-STEP Program focusing on remedial education and intensive support services for children transitioning from primary to secondary school (12 to 13 year olds) and who are at a critical juncture with high risk of dropping out of the school system. (ii) The Programme for Alternative Student Support (PASS) jointly administered by the MoE and the Dispute Resolution Foundation under which students displaying severe maladaptive behaviors in schools would undergo behavior modification counselling. (iii) School-community mobilization strategies and after-school programs that use schools as a hub within the community and can improve teacher-student interaction, promote youth leadership, and facilitate dating violence education and prevention, with a focus behavior change and working with younger boys/girls on violence prevention.

Alternative Livelihoods

15. Programs to engage youth in leadership and civic participation: Responding to high levels of youth unemployment and dropout from the formal education system, and limited access to vocational skills development, these programs will target youth within beneficiary communities, both male and female, who are neither working nor in school. This approach seeks to connect these youth to the ICDP public safety initiatives in their communities (e.g. community and afterschool based violence prevention) and community improvement (e.g. landscaping, public cleaning and recycling), sports, education and skills training that target at-risk youth with reinforced social cognitive and life skills. The aim is to provide an alternative for these young people and reduce their engagement in risky behavior that will lead to crime and violence,

providing pro-social leadership and civic engagement opportunities that contribute to community safety.

16. Community cleanliness and beautification – Unattractive communities that are littered with garbage, abandoned cars or blighted properties send a message that the community lacks supervision, is lawless and is neglected. This can contribute to fear and encourage further neglect, creating an environment that encourages criminal behavior. Activities that help reduce litter and garbage, and revitalize community streets, alleys and other public spaces by making them more welcoming to the community can reduce fear, make areas less inviting for criminal behavior and play a role in reversing the various factors that contribute to community decline. The project activities are designed to improve the cleanliness and beautify the communities.

 Cleanup and beautification programs will include the systematic cleanup of neighborhoods to remove garbage and large items (such as cars or refrigerators) and the implementation of beautification programs to green areas which can provide recreational areas for residents and which will help enhance the beauty and environmental quality of these inner city communities. The program will be undertaken in partnership with the NSWMA and through the Community Based Organizations (CBOs). As was done in ICBSP, Crime Prevention through Environmental Design will be used to help the community identify spaces for beautification and the design of the intervention.  Public awareness and education will support public awareness programs to sensitize beneficiary communities on litter reduction, and community cleanliness. It will also include cleanest community or street competitions, environment fun days and seminars and workshops.

17. Micro-enterprise development: The activity will provide skills training to community beneficiaries that have demonstrated the interest and capacity to initiate micro-enterprises in ICDP communities. The trainings will focus on skills required for preparation of business plans, budgeting, and accounting; product development and enhancement; and safety standards for some products (as applicable). In addition the project will facilitate linkages to microfinance institutions in the appropriate cases. The target group will initially be those micro-enterprises from the ICBSP which have shown a high level of interest in receiving additional training and support for their businesses. This will be linked to the Jamaica Foundations for Competitiveness and Growth Project (P147665) which aims to improve the investment climate, mobilize private sector investment for job creation and support training and financing of SMEs. The project plans to design a skills and knowledge transfer program.

18. Youth education and recreation programs: To enhance learning, develop social and conflict mediation skills among the youth the activity will finance technical assistance services that will deliver demand-driven and tested youth and adolescent educational and recreational programs through the community centers and other community locations. Specific interventions may include: after-school homework programs; summer camps; community libraries; computer skills training; guidance counseling; sports programs and competitions; and cultural programs such as in music, arts, and theater.

19. Component 3: Institutional Strengthening for Urban Management and Public Safety (US$2.69 million). This component will support institutional strengthening activities for selected GoJ entities responsible for issues relating to urban management and crime and violence prevention programs. The capacity building activities related to elements of urban management under ICDP will focus on the following elements: (i) options for affordable housing, (ii) improving land surveying tools and techniques, and supporting the preparation of a national policy on land regularization, (iii) planning for urban renewal of communities in and around downtown Kingston, (iv) preparing a strategy for the renewal of inner city communities, and (v) training for governmental agencies responsible for the operation and maintenance of basic infrastructure. The capacity building activities related to the public safety elements include: (i) improving the coverage and range of data collected by the Crime and Violence Observatory (for policy/decision making purposes); (ii) strengthening capacity of key stakeholders in evidence- based crime and violence prevention delivery and impact evaluation; and (iii) training of community mobilizers and para-professionals to implement new components of the crime and violence prevention approach.

Urban Management

20. Affordable Housing: The project will support the Ministry of Transport, Works, and Housing in technical assistance activities related to identifying options for low-income housing in densely populated areas. The Bank’s broad range of experience in supporting low income housing throughout Latin America and the Caribbean, as well as in South Africa, and other culturally similar countries will provide a strong basis of expertise in this area. Technical assistance activities in support of the low income housing sector in Jamaica could include: (i) the development of a strategy to incorporate the private sector and non-governmental organizations into low income housing development; and (ii) capacity building at the national and parish levels for development of a monitoring system for new housing construction.

21. Land Surveying: The project will support the National Land Agency through the acquisition of software and hardware, and technical training to the Surveying and Mapping Division to pre- check survey plans and cadastral maps for general registration of titles and regularization projects. In parallel, the project will support the preparation of a national policy on land regularization.

22. Planning for Urban Renewal: The revitalization of urban centers across Jamaica will require a multi-faceted approach to address the multitude of urban development challenges. Issues related to density, housing, basic infrastructure and tenure are some of the visible challenges impacting any re-development efforts that will be addressed through this activity. The physical and social profiles of areas in and around downtown Kingston, for example, are replicated across many urban centers in Jamaica. Urban renewal initiatives must therefore include an approach that considers the poor state of infrastructure and deteriorating housing stock that is prominent in inner cities. The formulation of the two planning instruments abovementioned (an urban renewal plan for communities in and around downtown Kingston, and a strategy for the renewal of inner city communities) is expected to aid Vision 2030’s goal to advance the robustness of the country’s planning system through urban growth management strategies, encouraging future rehabilitation in communities, and the viability of increasing access to housing and overall accessibility to inner city areas.

23. Strengthening Local Government and Communities for Operations & Maintenance of Infrastructure: Given that adequate operation and maintenance activities can help ensure the sustainability of any infrastructure intervention, the project will contribute to building capacities for operation and maintenance of the basic infrastructure (roads, water pipelines, sanitation facilities, drainage works, educational facilities, community centers, public spaces, and skips and drums) that will be financed by ICDP. Local capacities will therefore be built through the Parish Councils and the Social Development Commission (SDC), for which activities could include training, staffing, development and implementation of operation and maintenance plans, and provision of basic repair and maintenance equipment.

Public Safety

24. Improving coverage and range of data collected by the Crime Observatory: Currently, the Crime Observatory collects data on four types of incidents (homicide, suicide, sexual assault and traffic incidents) in five key parishes. In order to strengthen the Observatory’s role in providing policy makers with accurate and up to date information on crime and violence, ICDP will support: (i) the expansion of the Observatory’s coverage to ten parishes (TBC), (ii) the introduction of an automated GIS software (free/open-source) to ease the analysis of data collected; and (iii) build Observatory staff’s capacity to analyze and effectively disseminate a greater volume of information. Secondly, ICDP will further support the design and implementation of the required framework to collect and analyze data on Violence Related Injuries (VRIs) obtained from hospitals, which is critical to understand trends in crime and violence and support the design of prevention interventions.

25. Another key source of data that will strengthen the GoJ’s ability to develop informed policy and to measure progress in attaining community safety goals, and provide additional information to complement the Observatory data are the Victimization Surveys (to be carried out every three years by the GoJ). Project funds would support the implementation of 2 rounds of surveys and strengthen the capacity of the Monitoring and Evaluation Unit at the MNS to carry out the analysis of the data, in-house at the Ministry of National Security in partnership with local research institutions. Currently, this analysis is carried out by a research institution outside of the country.

26. Building on the existing community profiles developed by the Social Development Commission (SDC), support would be provided to front-line community teams in the use of standardized methodologies to update these profiles with new data on crime and violence generated above. These will be periodically updated to be effective as planning tools at the local level. Outreach to communities for sharing this information (as inputs to the development of Community Security Plans) would also be supported.

27. Strengthening capacity of key stakeholders in evidence-based crime and violence prevention delivery and impact evaluation: As the GoJ moves to define and scale-up a package of interventions for communities covered by the Community Renewal Program, and building on existing impact evaluation data from ICBSP and CSJP I and II, internal capacity of the JSIF, PIOJ/CRP, SDC and the NCPCSS office will be developed (linked to the Observatory) to incorporate evidence-based principles into select interventions in the targeted communities. The

activity will also support the commissioning and oversight for evaluation of strategic programs for groups at high risk to be implemented in Component 2.

28. Training of community mobilizers and para-professionals in targeted communities: Based on lessons-learned from ICBSP and consultations with the JSIF, building local capacity to develop integrated Community Security Plans as part of planning for urban renewal investments will be critical for the success of both crime and violence prevention and urban upgrading elements of project implementation. Working closely with the SDC on community mobilization and adjusting the role of community facilitators will be a critical element of this sub-component to ensure that strong community mobilization takes place systematically in areas targeted for urban upgrading investments. Under ICDP, the local planning capacity of community committees would therefore be strengthened as would the training of community mobilizers and community volunteers. The training of para-professionals and community mobilizers deployed under ICDP would focus on the incorporation of evidence-based principles and approaches in the selected interventions in targeted communities and participating schools. This will be particularly relevant as para-professionals and community mobilizers comprise the front-line teams and play a key role in guiding project beneficiaries in the selection of the most appropriate/effective combination of crime and violence interventions.

29. Component 4: Project Administration (US$4 million). This component will finance costs associated with program management, including project-related audits, citizen report cards, monitoring, mid-term and end-of-project evaluation, equipment and training to strengthen the Project Implementation Unit, as well as individual consultants and operating costs. It will also include staff support related to financial and procurement management. This component will also finance workshops to promote positive environmental and social impacts such as a public communications campaign on sustainable water usage, sanitation, solid waste management, and public safety. The component will also finance the JSIF core professional and technical staff for project management, including a Program Manager, Supervision Engineers and specialists in the areas of crime and violence prevention, safeguards compliance, finance, procurement and related project management areas. Core staff will be recruited on time-bound basis. In addition, financing will be provided for hiring an Independent Verification Agent for the Results-Based mechanism that will be implemented under Component 1.

Annex 3: Implementation Arrangements JAMAICA: Integrated Community Development Project (P146460)

Project Institutional and Implementation Arrangements

1. The Planning Institute of Jamaica (PIOJ) leads processes of policy formulation on economic and social issues and external co-operation management to achieve sustainable development. As part of its broader responsibilities the PIOJ is responsible for initiating and coordinating plans and program for economic, financial, social, cultural and physical development of Jamaica.

2. The Jamaica Social Investment Fund (JSIF) was established in 1996 to reduce poverty and help create an environment for sustainable development. The JSIF is a limited liability company established as a component of the GoJ's national poverty alleviation strategy. The Fund was designed primarily to channel resources to small-scaled community based projects. The JSIF is currently executing the Inner City Basic Services for the Poor Project financed by the World Bank and the Government of Jamaica. The Fund will remain as the selected implementing entity for the Integrated Community Development Project. The Project Implementing Entity will operate and maintain, throughout the implementation of the Project, a Project Implementation Unit (“PIU”), with functions, staffing, and responsibilities satisfactory to the Bank as set forth in the Project Operational Manual. In addition to the JSIF, there are multiple stakeholders associated with the proposed operation that will contribute to project coordination and implementation. These include:

3. The Social Development Commission (SDC) is the principal community organization agency working with Jamaica’s 783 communities. Positioned in the Ministry of Local Government and Community Development, the SDC will support in the identification of community priorities and definition of community profiles using participatory processes to guide, effectively plan and develop strategies to assist communities achieve their developmental objectives to which the ICDP will contribute.

4. The Ministry of Education (MoE) carries out the Government of Jamaica’s mandate of ensuring a system which secures quality education and training of all citizens of Jamaica in order to optimize individual and national development. In coordination with the JSIF, the MoE will support the implementation of the School Based Violence Reduction Toolkit through the ICDP.

5. The Ministry of National Security (MNS) contributes towards promoting safety and citizen security in Jamaica. The MNS facilitates the maintenance of law and order; protects Jamaica against internal and external threats; ensures the safety of Jamaica’s borders; and punishes and rehabilitates offenders. In coordination with the JSIF, the MNS will support the scaling up of the Jamaica Crime Observatory and the reduction in crime rates through National Crime Prevention and Community Safety Strategy (NCPCSS) and the Citizen Security and Justice Programme.

6. The Ministry of Health (MoH) works to provide quality health services and promote healthy lifestyles and environmental practices through health care delivery across the island. They envision a client-centered health system that provides quality care at affordable costs while

meeting the needs of the most vulnerable. The MoH will support MNS in expanding the Crime Observatory to include data analysis for community safety profiles and hospital injury data to enhance public safety in ICDP communities.

7. The National Solid Waste Management Authority (NSWMA) is a statutory body that manages the collection, treatment and disposal of solid waste materials throughout the island. NSWMA will primarily support capacity building mechanisms for improved containerization, collection, and waste management to encourage healthier practices, community beautification, and the implementation of programs for an overall increase in enforcement and awareness. They will be results based financing (RBF) implemented to encourage environmental sustainability and reduction of crime and violence, based on monitored performance confirming certain goals are reached. The RBF activity would incentivize source separation of organic and recyclable waste and thus reduce the cost to manage solid waste in the long run.

8. The National Water Commission (NWC) is a statutory body, operating under the Ministry of Water, Land, Environment and Climate Change, responsible for all major water and sewage operations, including the potable water supply and collection, water treatment, and the disposal of urban sewage throughout all parishes. The NWC will be supporting the improved access to potable water and regularization of supply for the ICDP communities. The NWC will be collaborating with the NSWMA and the JPS to facilitate better access to basic services and ensure payment for services provided.

9. The Jamaica Public Service Company (JPS) is the sole distributor of electricity to households and businesses across the island. In coordination with the NWC, the JPS will be improving access and regularization of electricity to the ICDP communities while ensuring payment for services provided.

Implementation Arrangements for Cleansing and Beautification Activities:

Activities to be financed

10. Investment and capacity building activities: The project will provide financial support for training, equipment and organizational support for cleanup and beautification programs; litter management, waste collection and recycling; and public awareness and education. The training will include topics on the obligations of the NSWMA, Environmental Wardens, Assistant Environmental Wardens and Community Based Organizations in order to qualify for results based financing.

11. Results Based Financing: Results-based financing will be provided through the project that would be contingent on verified performance and outcomes. These include: (i) the NSWMA for regular and sufficient collection of waste from the skips; (ii) Environmental wardens and assistant wardens for ensuring the cleanliness of the skips and community as well as proper separation of organics and recyclables if appropriate; and (iii) CBOs for ensuring the cleanliness of the skips and community as well as proper separation of organics and recyclables if appropriate. An Independent Verification Agent will be contracted to conduct random checks in the RBF communities and verify the results and quality of agreed upon services: (i) absence of waste from skips, (ii) regularity of waste collection, (iii) neighborhood cleanliness, (iv) cleanliness around

skips; (v) proper separation of organics and (vi) proper separation of recyclables. The results- based financing schemes will be implemented in three pilot communities for the first year, six in the second year and six in the third year. The results-based financing will be for the duration of three years per community. The exact recycling and composting targets as well as the precise schedule for NSWMA will vary by community and will be established after conducting a baseline waste audit for each participating community.

12. Alternative livelihoods: Responding to high levels of youth unemployment and dropout from the formal education system, and limited access to vocational skills development, these programs will target youth within beneficiary communities, both male and female, who are neither working nor in school. This approach seeks to connect these youth to the ICDP recycling program in their communities. The aim is to provide an alternative for these young people and reduce their engagement in risky behavior that will lead to crime and violence.

Table 1: Responsibilities for Implementation Item JSIF NSWMA CBOs Env Other Wardens Collection skips Procurement of Will own Maintenance of Maintain skip IVA will and containers equipment and equipment and skip area and area, verify management of results have overall hiring of Env. enforcement performance based incentives for responsibility Wardens. and awareness for results CBOs and Env for raising based Wardens. maintenance. financing. Collection trucks Procurement of Will own, NA NA IVA will equipment and operate and verify management of results maintain performance based incentives for equipment. for results NSWMA. based financing. Primary Procurement of NA TBD TBD NA collection equipment and equipment (carts facilitation of definition etc) of implementation arrangements. Cleanup and Facilitation of activities Facilitation of Implementation Facilitation of IVA will beautification and procurement of cleanup of cleanup cleanup and verify activities goods and equipment activities, activities, maintenance performance for this purpose transport of maintenance of of community for results management of results waste. community cleanliness. based based incentives for cleanliness and financing. Env. Wardens and hiring of Env. CBOs. Wardens. Recycling Procurement of TBD TBD TBD TBD equipment and facilitation of definition of implementation arrangements. Livelihoods Procurement of training Participation TBD Participation Organizations programs and as potential as recipients such as Heart coordination with other employer. of training. Institute as initiatives. trainers. Public Awareness Procurement of goods Implement Assist in Assist in NA

Item JSIF NSWMA CBOs Env Other Wardens and services for public public dissemination dissemination awareness. awareness of public of public programs. awareness awareness programs. programs.

Agreements

13. NSWMA and JSIF: As part of the Implementation Agreement between JSIF and the NSWMA, the arrangements for providing equipment and public awareness under the project will be specified. It will also specify the NSWMA’s responsibilities to collect waste regularly according to a schedule based on each community’s waste generation keeping the amount of garbage in the skips below a specified fill level. It will outline the monitoring mechanism and frequency, as well as the arrangements of providing results based purchase of trucks at a specified time period.

14. CBOs and JSIF: The JSIF will have a funding agreement with the CBOs that will specify the CBOs’ responsibilities to keep neighborhood and skip surroundings clean and if appropriate, to enforce proper separation of organics, recyclables and remaining waste into bins. It will outline the monitoring mechanism and frequency and outline the arrangements of providing results based payments to the CBO. These key agreements related to the results-based financing schemes are shown in Figure 1 below.

15. Environmental Wardens and JSIF: The JSIF will have a contractual agreement with Environmental Wardens and Assistant Environmental Wardens as defined by Bank procurement guidelines. Their contracts will include their obligations to undertake their duties and tasks in mobilizing the community to take action separating waste if appropriate, depositing waste at collection points, and participating in community cleanups, otherwise they must achieve these results themselves. They are eligible for a salary supplement results based payment if the work results in keeping the neighborhood and skip surroundings clean. The salary supplement payment will be included in the contract.

16. JSIF and Independent Verification Agent: The JSIF will contract the Independent Verification Agent through a competitive selection process and the contract terms of reference will outline their responsibilities for monitoring and reporting on the performance of the NSWMA, CBOs and Environmental Wardens.

Figure 1. Key Agreements for Results-Based Financing Schemes

JSIF

Funding Implementation agreement Agreement Contractual Agreement

Environmental Wardens & National Solid Waste Community Based Assistant Environmental Management Authority Organizations Wardens

Contractual Agreement Independent Verification Agent

17. Procurement and Financing Arrangements: The tables below outline the fiduciary arrangements for both the works related to results-based financing and those not.

Table 2: Community Cleanliness and Beautification under Results Based Financing Item Estimated Recipient Procurement Financing Results based cost (US$) Arrangements Salary 30,375 Environmental Community Component 1 Yes supplement Wardens, Assistant Contracting of the project Environmental Wardens Trucks (2) 285,714 NSWMA International Component 1 Yes Competitive Bid by of the project JSIF CBO funding 108,000 CBOs Community Component 1 Yes through a Contracting of the project performance payment

Table 3: Community Cleanliness and Beautification under Investment Financing Item Estimated Recipient Procurement Financing Results based cost (US$) Arrangements Salaries 390,000 Environmental Community Component 1 No Wardens, Assistant Contracting of the project Environmental Wardens Trucks (2) 428,571 NSWMA International Component 1 No Competitive Bid by of the project JSIF Monitoring 20,000 NA Competitively bid Component 1 No by (per annum) by JSIF of the project Independent Verification Agent Community 264,000 Communities and Consultants and Component 1 No Cleanup CBOs goods, of the project

Item Estimated Recipient Procurement Financing Results based cost (US$) Arrangements activities competitively bid by JSIF Skips, 169,000 NSWMA and Competitively bid Component 1 No drums, communities by JSIF of the project waste carts, composting and recycling equipment. Public 36,000 Communities Consultants and Component 1 No Awareness goods of the project and competitively bid education by JSIF campaigns Training 30,000 Environmental Consultants and Component 2 No Wardens and goods procured by of the project community members JSIF. MoU with training institutes.

Financial Management, Disbursements and Procurement

Financial Management

18. The overall control environment in the JSIF is acceptable while it is recognized that in recent years JSIF experienced capacity challenges in FM due to frequent turnover of staffing in the FM Unit. However, being proactive, the JSIF conducted an assessment of its FM capacity by appointing an independent consultant. Based on this assessment an action plan was defined as follows:

 Upgrading the current AccPac accounting software; integrating it with the Fund Manager and the MIS.  Setting-up an FM Unit, which includes a General Manager Finance, a Finance Manager, a Senior Financial Analyst, three Financial Analysts, three Accounting Clerks and an Administrative Officer.  Updating of the JSIF Operational Manual relating to FM.  Provision of adequate physical space to the FM staff and improve working environment.

19. During project preparation the Bank reviewed progress on the action plan and found all actions actively being implemented. In addition, the Bank undertook a financial management review summarized below:

 Budget: JSIF has a good budgeting system. The project budget is integrated in the national budget. It was agreed that Government will provide adequate fiscal space to the project during the implementation period for smooth implementation of planned activities under the project.

 Staffing: JSIF does not have adequate number of FM staff. JSIF recently appointed an Accountant to strengthen its FM capacity. A General Manager Finance is being appointed to lead the Financial Management Unit. It was also agreed to appoint a Financial Management Specialist for strengthening the financial management capacity of the JSIF.

 Accounting: JSIF uses the accounting software AccPac in combination with an in house developed system named ‘Fund Manager’. The general ledger relating to all projects are reviewed monthly. JSIF agreed to develop an interface between AccPac and the Fund Manager during the implementation of the project. The chart of accounts of the Project has codes having many digits and it is always a challenge for the staff for correct posting of transactions in the appropriate heads of accounts. It was agreed that the quality of the financial management work done by the staff would be reviewed by the General Manager and Finance Manager based on sample testing of the recorded transactions to avoid any inaccuracies in recording transactions of the project.

 Interim Financial Reporting: The Interim Financial Reports for the project will be submitted on a quarterly basis within 45 days from the end of each quarter. JSIF has some capacity challenges in preparing acceptable IFRs. It was agreed that the FM staff will be further trained to address this challenge. JSIF also agreed to ensure the quality of IFRs before submitting to the Bank. The IFRs formats would be agreed during the negotiations of the project.

 Internal Control: The overall control environment in JSIF is quite good. The Internal Financial Reports (IFRs) are closely monitored by the Board and also by the Audit committee of the Board. JSIF continues to have a vibrant internal control system, anchored in a highly effective internal auditing unit. JSIF is of a sufficiently large size to have a Finance Department with an adequate number of staff to institute appropriate segregation of duties, which contributed in strengthening the control environment. Monthly bank reconciliation statements are prepared in accordance with sound accounting practice; however the timeliness is affected by late availability of the bank statements from the commercial bank. JSIF maintains a fixed asset register of the projects and was found satisfactory and up to date but further improvements with asset labeling would be required. The projects and sub-projects are supervised on a regular basis. It was agreed that JSIF will keep proper documentation of all expenditures and organize the files and documents systematically so that these could be retrieved later, when needed.

 Internal Audit: The JSIF has an internal audit unit headed by a qualified accountant. The Board of JSIF has an Audit Committee for oversight and improving financial discipline. It was agreed that the Internal Audit Unit of JASIF will prepare a risk-based internal audit plan and share the same with the Bank. The Internal Audit Unit will conduct audit of project expenditures twice in year and share a summary of the findings with the Bank during supervision missions.

 External Audit: External audit of the Project will be conducted by the external auditor to be appointed by JSIF. The audit would be conducted using the International Auditing Standards (ISA), which are acceptable to the Bank. The audit report for the project would

be submitted within six months from the end of the financial year. The terms of reference of audit would be agreed with the Bank.

 Technical assistance support: The JSIF is implementing two Bank-financed projects, and two projects are being designed, which will be also implemented by the JSIF. This will increase the responsibility of the FM Unit significantly. It was agreed that a Senior Financial Management Specialist would be appointed under the project for period of two years to support strengthening the capacity of JSIF in financial management which will be financed by the project.

 Disbursements and flow of funds: The project will follow reports-based disbursements procedures. The JSIF will open a dedicated designated account in US dollar for the project at the ‘Bank of Jamaica’. Additionally, a local currency account will also be opened in a local commercial bank acceptable to the Bank. All payments in foreign currency will be paid from the Designated Account. Funds will be transferred to the local currency account as when required and all payments in local currency will be paid from the local currency account. The ceiling of the Designated Account is variable, based on a projected cash-flow prepared at least twice a year. Subsequent disbursements would be made based on Withdrawal Applications be submitted by the Project, based on estimated funds required for each semester. The Internal Audit Unit of the JSIF reviews all Interim Financial Reports and Withdrawal Application to ensure their accuracy before these are submitted to the Bank. The Internal Audit unit also reviews the documentation of expenditures by the JSIF in the Bank’s system.

Procurement Arrangements

20. Procurement of works: Works procured under this project will consist of contracts, including the road and infrastructure, sewage and water pipelines, formalization of household electrical and water connections, rehabilitation of educational facilities, zinc fence removal, community center construction, retrofitting of shipping containers as mobile community security centers, greening of public spaces, and physical improvements to schools at a total cost of around US$28 million, with 8 percent of construction cost to be applied for the design and supervision contracts. The procurement will be done using the Bank’s Standard Bidding Documents following National Competitive Bidding (NCB) and shopping for small value contracts, as agreed with the World Bank.

21. Procurement of Goods: Goods procured under this project would include garbage compactor trucks for waste consolidation and disposal, vehicles, office furniture and equipment, computer hardware and software, fencing and security systems, surveying equipment of National Land Agency, as well as goods required for the neighborhood improvement program. Goods contracts will be grouped, to the extent possible, into bidding packages of more than US$150,000 equivalent, using the Bank’s Standard Bidding Documents (SBD) and following ICB procedures where necessary. National Competitive Bidding (NCB) and shopping for small value contracts, as agreed in the Procurement Plan, shall be followed.

22. Procurement of non-consulting services: will consist of public visibility preparation activities and logistics for training, which will be contracted following shopping or NCB procedures.

23. Selection of Consultants: Consulting services would be required under this project for engineering design and supervision, capacity building to local government, strengthening of local Parish development entities, preparation of a national policy on land regularization, definition of innovative affordable housing solutions, improved environmental design, strengthened solid waste management practices, enhanced institutional capacity of NSWMA and the scaling up of the Jamaica Crime Observatory. Individual consultants would be selected following the procedures set forth in Section V of the Guidelines, whereas consulting firms would be selected following Quality and Cost Based Selection (QCBS), Least-Cost Selection (LCS), Selection Based on Consultant’s Qualifications (CQS) etc. Short lists of consultants for services estimated to cost less than US$200,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.

24. Community Participation: The implementation of minor or simple infrastructure neighborhood improvements, Cleanliness and Beautification activities, for community based contracting (CBC). Goods, small works and non-consulting services will be contracted by local communities, using Community Participation Procurement (CPP) in line with paragraph 3.19 of the Procurement Guidelines, as set out in detail in the Operational Manual.

25. Operating Costs mean the following reasonable incremental operational costs (which would not have been incurred absent the Project) related to Project implementation, management and supervision and incurred by the Borrower: (i) costs for utilities, maintenance and consumable office supplies, printing services, and communication services; and (ii) transportation costs, travel and per diem cost for project staff, which will carry out supervisory activities under the Project.

26. The Procurement Risk Assessment and Management of the capacity of the Implementing Agency was carried out in November 2013 for the Project by the Bank’s procurement accredited staff in line with the Procurement Risk Assessment and Management System (PRAM) Module by the World Bank. The questionnaire for PRAM was shared with the JSIF and its officials were interviewed on the assessment of the Procurement. The following are the summarized findings:

 All procurement is done in keeping with the Government of Jamaica (GoJ) Handbook of Public Sector Procurement Procedures, which refers to additional specific provisions as agreed with external funding agencies. The World Bank’s procurement guidelines are included in the Appendices of the JSIF Operational Manual.  An assessment of the capacity of the Jamaica Social Investment Fund as the Implementing Agency to implement procurement actions under the Project was conducted. The assessment reviewed the organizational structure for implementing the Project and the interaction between the procurement staff in the JSIF with sub-project departments for project implementation. The overall Project risk for procurement is rated as low based on the assessment of the capacity of the JSIF in implementing the ICDP project and the proposed mitigation arrangements for procurement implementation under this project as described below.

Action Plan in Strengthening the Capacity to Implement Procurement Actions:

a. The project procurement will be managed by the experienced JSIF procurement team composed of the procurement manager and officers, a legal officer, a quantity surveyor and the administrative assistant, who work with several international funding agencies, including the World Bank. b. The procurement team members in the JSIF shall attend training for procurement in the regional workshop in 2014. c. The procurement plan for the implementation of the project during the first 18 months, (not required for CPP) is agreed at preparation of the project as shown in Table 4. d. Tender/selection documents for the first year’s procurement under ICB and QCBS in the procurement plan should be prepared by the JSIF and submitted to the Bank for review by the effectiveness of the project.

27. Procurement Plan: The procurement plan for implementation of the proposed Project for the first 18 months was agreed between the Borrower and the Project Team on January 30, 2014 in Table 4 below. The plan shall be made available at web address http://www.worldbank.org/procure within 30 days of the signature of the Financing Agreement. It would be updated annually and the updated procurement plan shall be disclosed at this site after clearance by the Bank. The recommended thresholds for the use of the procurement methods specified in the Financing Agreement are identified in OM as the basis for the agreed procurement plan.

28. A General Procurement Notice (GPN) would be published in the United Nations "Development Business" on -line around the period of Loan Negotiation. For ICB goods and works contracts and large-value consultants contracts (more than US$200,000), Specific Procurement Notice would be advertised in the Development Business on -line and national press.

29. Frequency of Procurement Supervision:. Supervision of procurement would be carried out through prior review supplemented by supervision missions with post review at least once a year.

Table 4: Procurement Plan (for the first 18 months)27

Contract Review by Estimated Associated Estimated Procurement No. Category and Description of Contract Bank date of Agency Cost (US$) Method Type (Prior/Post) Award

1 NSWMA Goods Skips (x57) 114,000 Shopping Post Nov-14

2 NSWMA Works Construction of skip enclosures 256,000 NCB Post Nov-14

3 NSWMA Goods Waste collection drums 32,000 Shopping Post Nov-14 4 NSWMA Goods Recycling equipment 23,000 Shopping Post Nov-14 5 NSWMA Goods Garbage Truck - 2 287,000 ICB Post Oct-14 Non-Consulting 6 NSWMA Public Awareness Campaign 36,000 Shopping Post Aug-14 Service

Independent Verification Agent 7 NSWMA Consulting (1 yr with option to be 30,000 CQS Prior Apr-14 renewed)

Senior Financial Management 8 JSIF Consulting 38,200 IC Post Apr-14 Specialist Community Liaison Officers (6) 9 JSIF Consulting – Multiple Contracts over Five 516,000 IC Post Apr-14 (5) years Engineering Firms -Design and Supervision of Integrated Consulting 10 JSIF Infrastructure (9 IIPs / 900,000 CQS Post Oct-14 Firms Communities) – Multiple contracts

Baseline Assessments and 11 JSIF Consulting Firm 80,000 CQS Post Apr - 14 Community Profile Updates

27 Procurement under CPP is not required for a procurement plan as per GL3.19.

Contract Review by Estimated Associated Estimated Procurement No. Category and Description of Contract Bank date of Agency Cost (US$) Method Type (Prior/Post) Award

GIS Community Shape-files – Non-Consulting 12 JSIF Land Ownership Info from the 35,000 Direct Contracting Prior Apr - 14 Service National Land Agency

Non-Consulting 13 JSIF Office Equipment and Software 65,000 Shopping Post Apr - 14 Service

Optimization of Crime Single Source 14 MNS Consulting 78,000 Prior Apr-14 Observatory Platform Selection Data Management Specialist 15 MNS Consulting (x4) – Multiple Contracts over 78,000 IC Post Apr-15 18 months 16 MNS Consulting Victimization Survey 80,000 CQS Post Apr-15

17 NLA Goods Land Surveying Software 95,000 Direct Contracting Prior Apr-15

Consulting Training on use and application 18 NLA 4,500 CQS Post Apr-15 Services of software Computers Shopping 19 NLA Goods 87,000 Post Apr-15 Multiple Contracts Total 2,834,700

Table 5: Thresholds for Procurement Methods and Prior Review

Expenditure Contract Value Procurement Contracts Subject to Category (Threshold) Method Prior Review US$ thousands 1. Works >1500 ICB All <1500 NCB None <150 Shopping None 2. Goods and Non >150 ICB All Consulting Services <150 NCB None <50 Shopping None Regardless of value Direct Contracting All 3. Goods, works and Regardless of value Community Participation None Non Consulting Procurement as per GL3.19 Services (CPP) and OM 4.Consulting Services -4.A Firms ≥200 QCBS,QBS,FBS, LCS All <200 QCBS,QBS,FBS,LCS, and First contract CQS Regardless of value Single Source All -4.B Regardless of value Comparison of 3 CVs in None Individuals accordance with Chapter V of the Guidelines Regardless of value Sole Source All

Note: ICB = International Competitive Bidding NCB = National Competitive Bidding QCBS = Quality- and Cost-Based Selection - QBS = Quality-Based Selection FBS = Fixed Budget Selection - LCS = Least-Cost Selection CQS = Selection Based on Consultants' Qualifications

Environmental and Social (including safeguards)

Social Risk Management Systems

a. Land acquisition and resettlement

30. The capacity of the JSIF in terms of managing involuntary resettlement, and other social management issues (such as grievance redress and conflict resolution) was rated highly during the implementation of the ICBSP. The JSIF successfully applied the measures specified in the resettlement policy framework to the mitigation of two minor cases of land acquisition. Otherwise, the JSIF pro-actively screened sub-project locations in order to minimize potential resettlement and land acquisition. Furthermore, the JSIF was considered adequately staffed in terms of social management, having six specialists primarily engaged in outreach and capacity building activities with project beneficiaries.

31. During ICBSP, the JSIF developed significant capacity in the application of the World Bank’s Operational Policy on Involuntary Resettlement having successfully implemented the land acquisition and policy framework, and prepared three abbreviated resettlement plans that were acceptable to the World Bank. Furthermore, the JSIF conducted the necessary due diligence to ensure that land donated or leased for community sub-projects had an up-to-date and un- encumbered title, and that the transaction had been co-signed by the local Justice of the Peace.

32. For the ICDP, only minor adjustments were made to the land acquisition and resettlement policy framework, which was re-disclosed on the JSIF and World Bank Website. These updates included: (i) additional information on ICDP, as well as some minor adjustments to the grievance redress process; (ii) linking screening questions on land acquisition and donation to resettlement to specific mitigation measures within the Fund Manager System; (iii) more detailed screening questions on land acquisition and donation in the screening process along with additional field verification on land donations; and (iv) in the case of voluntary land donations, strong procedures are already in place to verify ownership and to get independent certification that the donation is indeed voluntary. For ICDP additional screening criteria included: (i) that the donation does not require physical relocation of a household or a donation of more than 10 percent of private holdings currently in use; (ii) that the land is free of squatters and encroachers; and (iii) attachments of photographs of the land donated to the application package.

b. Social Screening

33. JSIF has a comprehensive social screening process in place for projects financed by ICBSP and other sources. This process includes a review of the demographic and social characteristics of the beneficiaries, the capacity and status of the community based organization responsible for the project, participation by community members in needs identification, potential employment impact, and the accessibility of the project to people with disabilities. These topics are captured in the social appraisal report prepared by the social officer (with technical officer input) following multiple field visits. This report then becomes the basis for subsequent reviews within the JSIF. The system in place is very comprehensive, and should be continued and built on for the ICDP.

c. Gender Analysis and Actions

34. One of the topics addressed through the social screening process, as well as the monitoring and evaluation system, is the analysis of the impact of project on gender relations. During the social screening process, social officers are expected to record how many men and women participate in project planning meetings, and estimate how many men and women will be direct (in terms of employment and training) and in-direct (as community residents) beneficiaries of the project. Social officers and members of the project also seek to actively promote the role of women as workers in construction contracts, challenging their traditional role in the workplace. With ICDP, the JSIF can continue to build on this approach, and may consider also gathering information on whether or not women play a leadership role within the community based organizations supported, and if not, whether it would be appropriate to design leadership training programs for women.

d. Participatory Planning and Consultation

35. One of the factors underpinning the success of ICBSP was that the sub-projects selected for financing had been prioritized as part of a participatory community needs assessment led by the Social Development Commission (SDC). There is an established system for participatory community development planning in Jamaica that is led by the SDC, through their network of Community Officers and Community Development Councils (made up of relevant community based organizations). The JSIF builds on this system through identifying relevant sub-projects from the community development plans, and verifying their continued relevance through additional community meetings as part of the social screening process. The JSIF also works to build the capacity of community based organizations through learning events for activists from different communities twice a year. Furthermore, the JSIF recognizes community contributions during project implementation, through putting a dollar value on the community’s in-kind and voluntary contributions. This is documented as part of the overall cost of the project and publicized during the pre-implementation meeting.

e. Grievance Redress and Complaints Handling

36. During the construction of infrastructure projects there is significant scope for complaints regarding the impact of the works on foot and vehicular traffic, noise and dust levels, as well possible damage to property. The procedures for voicing these complaints are highlighted during the pre-implementation meetings held prior to the commencement of the sub-project in each community. These meetings serve to notify community members of possible disruption that could be caused by construction works, allows them to voice their concerns in front of the contractor, and to provide information on who to contact should a problem arise. Any complaints that do arise during implementation are entered into Fund Manager (the JSIF’s MIS), on submission to the JSIF, and subsequently, a corrective action form outlines the resolution of the problem. A similar system will be applied during the ICDP, with some minor adjustments to allow for the capturing of data on complaints resolution within Fund Manager (e.g. type of solution, time to resolve etc.). Overall, there were very few complaints with ICBSP, and those that were made, mostly related to issues of noise and dust. Complaints relating to employment or wage disputes are mediated by the sub-project employment coordinator (see below).

f. Maximizing Local Employment Opportunities

37. Within JSIF financed sub-projects, a unique arrangement has been developed to ensure employment benefits from construction works are maximized and equally shared within the community. This involves the community appointing an employment coordinator to liaise with the contractor, in sourcing the necessary labor and skills within the community. The employment coordinator also works to resolve disputes regarding wages and on the rotation of workers every two weeks so that opportunities are shared throughout the community. This has proved to be a very effective model that should be continued in the ICDP.

g. Social Sustainability

38. For infrastructure investments, every effort is made to ensure the social sustainability of investments through the establishment, training, and equipping of community based maintenance committees which are comprised of community members with relevant maintenance skills, and a maintenance plan. These groups have the capacity to do minor repairs themselves, and engage the relevant authorities (e.g. the NWC, Parish Council etc.) should major repairs be necessary. Social sustainability concerns also arise for utility connections supported by the project. For electricity connections, community case studies conducted during ICBSP demonstrated that benefiting from this activity under the original project managed to service their bills. This was partly due to the fact that many of these households were already paying for electricity, by being connected through a relative legal connection. Social sustainability and willingness to pay was considered a significant greater challenge in the water sector. It is estimated that 65 percent of the water produced and distributed by the National Water Commission is not paid for. In response to this challenge, the NWC is piloting a Social Intervention – Revenue Enhancement Project. Actions envisaged under this project include concerted efforts at the community level to improve public relations, improve service delivery, rate revisions, district metering, smart metering, adjustments to revenue collection where local customer service centers negotiate the repayment of balances over a period of years, multi-stakeholder coordination, and the use of geographic information systems. The NWC is conscious of the need to service these communities, and is even willing to install connections in informal dwellings (through an informal contract). While JSIF has not been directly involved in domestic installations under ICBSP, there is a vested interest in supporting efforts to ensure the efficient use of water and sanitation infrastructure that is financed under ICDP. Complementary activities that could be financed under ICDP may involve financial inclusion and education initiatives (in lieu of micro-finance) to assist people with household budgeting.

Environmental Management Systems

39. The JSIF's capacity for environmental safeguard policies is also considered to be very strong. The JSIF developed an Environmental Management System and successfully achieved ISO 14001 certification in 2009 and recertification in 2011. The EMS is integrated with Fund Manager Software to facilitate application of the EMS to all the JSIF projects, including another World Bank project (Rural Economic Development Initiative or REDI). Equivalence and acceptability assessments have resulted in positive outcomes for environmental safeguards relative to the ICBSP. Jamaica is a leader in the region for piloting the use of country systems.

40. Safeguards instruments for the ICBSP included an Environmental Management Framework (EMF) (disclosed December 6, 2013). The EMF contains comprehensive protocols for screening and monitoring the environmental aspects of subproject activities. Proposed subproject sites are subject to field visits by project officers, and projects requiring Environmental Permits from the National Environment and Planning Agency are also flagged during screening and assessment. Updates or revisions of the EMF for ICDP have been prepared by the JSIF, based on discussions with World Bank Environmental Specialist and are under review. Changes are being made to reflect continuous improvements in the EMF resulting from ISO certification and increased the JSIF capabilities in environmental management.

41. Supervision missions have verified the implementation of the EMF, including the incorporation of mitigation measures into contract documents, field supervision, and procedures development. Since 2012 staff at the JSIF has included a full-time Environmental Manager, whose duties involve program management, staff development and training in environmental matters.

Monitoring & Evaluation

42. Monitoring and evaluation will be part of the JSIF’s core functions and will follow all agreed upon project indicators. All such indicators and corresponding sources have been defined. Information for indicators will mostly be collected by the support agencies and checked, processed, analyzed and disseminated by the JSIF’s Monitoring and Evaluation Unit. All processes and reports will be mentioned in the Project Operational Manual.

Role of Partners

43. The Project will build on partnerships with international development agencies currently working in the sectors of infrastructure development and crime and violence prevention in Jamaica. These partners include the Inter-American Development Bank (IADB), USAID, the EU Delegation, the United Nations Development Programme (UNDP), and others. A broad range of international development agencies was consulted in the process of selecting the ICDP communities, and the scope of ongoing and planned partner activities informed the choice of communities included in the project.

44. The ICDP will maintain close coordination with international partners carrying out complementary activities, ensuring that the Project’s proposed interventions and ongoing partner programs mutually reinforce their intended objectives. The Project’s integration with the GoJ’s Community Renewal Programme (CRP) further promotes collaboration with international partners also supporting this national initiative.

45. While many ongoing and planned international partner activities align with those of the Project, several major programs stand out for their potential to create synergies with the ICDP. The IADB will launch the third phase of the Citizen Security and Justice Programme (CSJP III) in collaboration with UNDP to address crime and violence in 50 volatile and vulnerable communities throughout Jamaica. Intervention activities carried out under this program include youth-targeted violence prevention services, community mobilization, job training, and public

anti-violence campaigns. Core objectives of the CSJP III – reduction of major crimes and interpersonal violence, and increase in perception of safety – closely align with those of the ICDP. In communities targeted by both programs, coordination with the IADB and UNDP will prove critical in promoting complementary activities.

46. USAID carries out a wide range of programs in Jamaica spanning the sectors of crime and violence, health, education and economic development. The organization has begun preparation of the second phase of its Caribbean Basin Security Initiative (COMET II), targeting crime and violence in Jamaica through activities focused on at-risk youth, community policing, and community-based civil society organizations. ICDP activities will benefit from coordination with USAID’s work in the crime and violence field, which builds off of the agency’s prior accomplishments and experience in this sector.

47. Through its support for the GoJ’s Community Renewal Programme, the EU Delegation’s Poverty Reduction Programme (PRP), currently in its third stage, also has strong potential for linkages with the ICDP. The PRP aims to alleviate poverty through investment in basic infrastructure and education in over 50 vulnerable communities, while also promoting the active participation of community groups. Due to the ICDP’s close ties to the CRP and integration with the GoJ’s national agenda for crime and violence prevention, the project will therefore benefit from coordination and sharing of knowledge with the EU Delegation.

48. Beyond these international partners, the ICDP will collaborate with a range of other development agencies carrying out a broad spectrum of activities in communities throughout Jamaica. As the specific needs and challenges of the selected communities become increasingly apparent over the course of project preparation, the Project will coordinate with international partners as relevant to project needs and objectives.

Annex 4: Operational Risk Assessment Framework (ORAF) JAMAICA: Integrated Community Development Project (P146460)

1.1. Stakeholder Risk Rating High Description: Risk Management: It is recognized that The risk of increased crime and violence in project areas, and the associated impact on the potential for project stakeholder risk is high given implementation is mitigated by the ongoing presence of the GoJ community organizers (JSIF, CSJP, SDC) and that the targeted communities their work with local ‘area leaders’ and community volunteers, to attempt to ensure that periodic violence does are some of Jamaica’s most not escalate or interfere with project activities. Despite these efforts, the potential for social unrest within the vulnerable and volatile. There project communities remains a significant issue which is driven by a multitude of factors, many of which are is risk of increased crime and beyond the control of the project. As such the overall success of the project, and the associated attainment of violence in project areas, defined outcomes, will be influenced by the relative social stability of targeted communities. which would have an associated impact on project implementation. Resp: Stage: Recurrent: Due Date: Frequency: Status: Client Not Yet Due 2. Implementing Agency Risks (including fiduciary) 2.1. Capacity Rating Moderate Description: Risk Management: During implementation of the The Bank conducted its own FM capacity assessment of the JSIF and agreed a time bound action plan to monitor ICBSP capacity gaps in its implementation. After the implementation of the proposed action plan, the residual FM risk is substantial. This financial management systems risk will be managed: (i) adequate supervision by the Bank; (ii) strengthening the JSIF's internal control were identified which if not environment; (iii) conducting risk-based internal audit of all project expenditures by the Internal Audit Unit of fully rectified could affect JSIF. The findings and recommendations of internal audit will be reviewed by the Audit Committee of the JSIF implementation of the ICDP. Board of Directors and ensure corrective actions. Resp: Stage: Recurrent: Due Date: Frequency: Status: Both In Progress

2.2. Governance Rating Low Description: Risk Management: No risk associated with JSIF’s n/a governance structures and Resp: Stage: Recurrent: Due Date: Frequency: Status: oversight mechanisms have been identified. Client In Progress 3. Project Risks 3.1. Design Rating Low Description: Risk Management: Violence prevention services The task team will work closely with GoJ counterparts to assess the optimal sizing and scope of the component would be dwarfed in a related to citizen security. The task team has incorporated a crime and violence specialist with significant program that is inherently experience and direct knowledge of Jamaica who will support this dialogue. focused on urban upgrading Resp: Stage: Recurrent: Due Date: Frequency: Status: and related activities Both Preparation In Progress insufficiently focused due to "mission creep" with built infrastructure projects not addressing criminogenic risk factors. 3.2. Social and Rating Low Environmental Description: Risk Management: 1. There is a risk that the 1. A resettlement policy framework is already in place for the original project, and will be updated during infrastructure sub-project will preparation. Similarly, systems and expertise to manage community outreach, grievance redress and conflict require land or negatively management is in place from the original project. impact squatter’s assets. There 2. The JSIF achieved and renewed ISO 14001 certification for its environmental management system and has is also a risk that conflict and added a full time Environmental Manager to its staff for ICBSP and other projects. Periodic supervision by complaints may arise over the World Bank environmental specialists will ensure that the JSIF will continue to perform well dealing with choice and location of environmental safeguard issues. community sub-projects. Resp: Stage: Recurrent: Due Date: Frequency: Status:

Client Preparation 14-Nov- Not Yet Due 2. Although environmental impacts are expected to be 2013 relatively minor, there is a low

49 risk that the JSIF as the implementing agency may not be able to sustain its good past performance in environmental management. 3.3. Program and Donor Rating Low Description: Risk Management: Overlap and/or weak One notable advance in Jamaica has been this effort towards greater inter-GoJ coordination and donor coordination among entities harmonization. There is now much enhanced coordination between the National Crime Prevention and supporting the urban Community Safety Strategy (NCPCSS), and the Citizen Security and Justice Programme which is increasingly development and citizen viewed as the principal implementer of community safety, and has become a recipient for various donors who security agendas. wish to focus community safety investments. Resp: Stage: Recurrent: Due Date: Frequency: Status: Both Preparation In Progress 3.4. Delivery Monitoring and Rating Low Sustainability Description: Risk Management: A concern is the sustainability With the GoJ, collaboratively define selection criteria for community selection that will maximize economies of of works and advances made scale in terms of geographic continuity and delivery of project related infrastructure, services and citizen security in the communities included enhancements. under the ICBSP and the Resp: Stage: Recurrent: Due Date: Frequency: Status: proposed 18 additional Both Preparation In Progress communities and how to maximize developmental impact.

4. Project Team Proposed Rating Before Review Preparation Risk Low Implementation Moderate Rating: Risk Rating: Comments: Comments: The overall risk rating is considered to be low given The JSIF is well positioned to undertake another project through the utilization of lessons that the project is perceived as a priority for the GoJ learnt and best practices unearthed in a context of pressing social development needs. Since and is directly aligned with the ICBSP, which has inception, the JSIF has completed over 1,000 sub projects in vulnerable communities and

50 been successful in achieving its defined objectives. delivered these to some 1.6 million underserved beneficiaries The implementing agency, JSIF, has a strong track record in implementing World Bank projects and broadly has the institutional capacity to adequately address safeguard and fiduciary requirements. 5. Overall Risk Preparation Risk Implementation Moderate Rating: Moderate Risk Rating: Comments: Comments:

Annex 5: Implementation Support Plan JAMAICA: Integrated Community Development Project (P146460)

Strategy and Approach for Implementation Support

1. The Strategy for Implementation Support was developed based on the nature of the proposed Project and its risk profile. This Strategy aims to support the GoJ in achieving the Project Development Objectives. Furthermore, the Implementation Support focuses on risk mitigation measures identified in the ORAF and standard Bank implementation support (including technical, institutional, environmental and social safeguards) and fiduciary aspects (financial management and procurement).

Implementation Support Plan

2. For the execution of the Implementation Support Plan, the Bank team will provide timely, efficient, and effective support to the implementing partner. The Task team and key social and environmental specialists will also conduct semiannual implementation support missions and field visits to follow up on the Project implementation. Detailed inputs from the Bank team are outlined below.

 Strategic. Formal implementation support missions will meet with the PIOJ to: (i) review project activities; (ii) reconfirm strategic alignment of the Project’s multi-sector aspects; and (iii) ensure the necessary coordination across respective stakeholders.

 Technical. Priority will be placed on the implementation of the civil works, crime and violence reduction programs, and institutional strengthening defined under Components 1 to 3. Regular field visits will serve to verify compliance with the Project Operational Manual and encourage required adjustments to project activities, as needed, given results on the ground. The Bank team may be supplemented with additional technical support as needed, by short-term external technical experts. The Bank team will review technical inputs including terms of reference and bidding documents to ensure adequate technical specifications. In addition, support on procurement aspects will ensure proper preparation of requests for proposals, bidding documents, and eventual evaluation of bids and proposals.

 Safeguards. The Bank worked with and advised the GoJ on the preparation of, and consultation for, the social and environmental safeguards instruments for the proposed project. This support will continue throughout project implementation with regard to the investments financed under the Project. The Project is required to fully implement the social and environmental management plans/systems per World Bank safeguard policies and in-line with the Project Operational Manual. There will be multiple construction contracts and associated works that require adequate supervision.

 Fiduciary. The Bank evaluated the capacity and found sufficient capabilities on FM aspects. During implementation, continued guidance and specific and timely targeted training will be provided on procurement aspects during the remaining period prior to project effectiveness to ensure readiness for contracting of civil works once the project is declared effective.

Continued support will be provided through technical support and field visits by the Bank team during project implementation. Implementation support site visits for the Project’s financial and procurement management arrangements would be conducted semi-annually and as needed in response to client needs.

 Client relations. The Task Team Leader (TTL) will: (i) coordinate Bank support to ensure consistent project implementation, as specified in the Legal Agreement and Project Operational Manual; and (ii) meet regularly with the GoJ’s senior representatives to gauge project progress (including the mid-term review) in achieving the PDO and address implementation roadblocks, as they may arise.

3. The main focus in terms of support to implementation during the first twelve months and thereafter is described below.

Table 1. Estimated Implementation Support Time Focus Skills Needed Resource Estimate (Staff Weeks) First twelve Procurement training, Procurement review of 3 Procurement Specialist months bidding documents Technical review of the terms of reference, 4 Technical Specialists technical reports and bidding documents FM training and implementation support FM Specialists 3 Social safeguards – implementation support and 2 Social Specialist training Environmental safeguards – implementation Environmental 2 support and training Specialist Public Safety Enhancement – implementation Crime and Violence 4 support and training Specialist Project management and project implementation 10 Task Team Leader support coordination After month Procurement review of bidding documents Procurement Specialist 2 13 Technical review of the terms of reference, 5 Technical Specialists technical reports and bidding documents FM training and implementation support and 2 FM Specialists training Social safeguards – implementation support and 2 Social Specialist training Environmental safeguards – implementation Environmental 2 support and training Specialist Public Safety Enhancement – implementation Crime and Violence 4 support and training Specialist Project management and project implementation 8 Task Team Leader support coordination

Annex 6: Community Engagement, Criteria for Selection and Community Profiles JAMAICA: Integrated Community Development Project (P146460)

Community Engagement in Definition of Profiles, Priority Plans and Safety Plans

1. The SDC conducted periodic data collection for Community Profiles, Community Priority Plans, and Community Safety Plans. The methodology for collecting the data is provided below.

Methodology for Community Profiles

2. Both qualitative and quantitative methodologies were employed to capture the data for compilation of the socio-economic study for the communities.

3. A ten percent random systematic sample survey approach was utilized to capture primary data, wherein each household head was targeted for interview regarding the socio-economic characteristics of their household.

4. The main method of data collection was an eighty-four (84) item questionnaire with six hundred and ninety-one (691) socio-economic variables. The questionnaire sought to capture information on the socio-economic conditions of the community regarding the demographic characteristics of the households, status of education and training, the situation of health, housing, sanitation, crime and information on the impact of these on the living conditions of the residents and the growth of the communities.

5. Focus group discussions and observations were also done to capture some qualitative aspects of the socio-economic characteristics of the community and to validate some of the information captured through the household survey.

Phases in the Research Process:

Phase 1: Sensitization & Mobilization - community and stakeholders

6. Prior to the data collection phase, a number of methods were utilized to sensitize and mobilize the community around the project; this included:  The usage of a town crier for three days  Sensitization via meetings – Community Development Committee (CDC) and Community-Based Organization (CBO) meetings.  Community walk-through

Phase: 2 – Recruitment, Training and Other Staff Considerations

7. After an intense recruitment, training of Team Leaders, Data Collectors and Facilitators was done during the period (month and year) where they were guided and instructed on how to administer the questionnaires, deportment and other expectations.

Phase 3: - Data Collection

8. In this phase a community map was developed and house count exercise provided information on the number of dwellings and households. This facilitated the execution of a Systematic Random Sample Survey. Data collectors were supervised by the Community Development Officer responsible for the area, and field supervisors. All completed questionnaires were examined for inaccuracies by the supervisors.

9. A secondary data search and collation was carried out and literature presently existing within the Social Development Commission such as listings of Project and Community Based Organization (CBO) specific to the Community were also utilized.

10. Socio-economic reports from the Planning Institute of Jamaica (PIOJ) and the Statistical Institute of Jamaica were utilized for comparative analysis. The two main publications used were the Economic and Social Survey of Jamaica, 2007, and the Jamaica Survey of Living Conditions, 2007.

Phase 4: - Profile Development

11. Data from the household survey was entered using the Statistical Package of the Social Sciences (SPSS) software and analyzed using both SPSS and Microsoft Excel. Cross tabulations, frequencies, measures of central tendency and relationship tests such as chi square were utilized in the analysis of data. The results are presented herein on the Community Profile Template with graphic presentation such as tables, pie charts and bar graphs.

Data Validation Process

12. The profile was shared with a wide cross section of the community and its stakeholders to ensure that the data reflects an accurate picture of the community and widely accepted for use in the community development planning process. A variety of forums which involve participatory learning were utilized including general community meetings, informal rap sessions and focus group discussions.

Methodology for Community Priority/ Safety Plans

13. Qualitative methodologies were employed to capture the data for compilation of the Community Priority/ Safety Plans. The main community organization and the community at large were sensitized over a four (4) week period. After which, a mixed methodology was used to complete the community profile via the survey method supported by a series of focus group discussions. These discussions were held utilizing Participatory Learning Approach tools including Visioning, SWOT Analysis, Problem Tree, Problem Analysis, and Pair Wise Ranking. A validation session was held by the community organization and a steering committee made up on community members. They reviewed community data and identified priority issues and possible solutions, using a range of participatory action strategies (brainstorming, prioritization and action planning).

Criteria for Selection of the ICDP Communities

14. The framework for the selection of the ICDP Communities was generated from the Community Renewal Programme’s (CRP) assessment of the most volatile and vulnerable communities in the five most crime-affected parishes of Kingston and St. Andrew, St. Catherine, St. James, and Clarendon. Across Jamaica, severe inequality across urban communities is particularly notable, above all in Kingston where pockets of poverty which will be addressed by the project. The main criteria utilized in the selection process were indicators of poverty and crime in urban and peri-urban communities. The 18 communities to be supported by the proposed project were prioritized if they were: (i) contiguous to ICBSP peripheral areas; (ii) proposed by the Ministry of Local Government/ the Ministry of National Security; (iii) proposed by the Social Development Commission; (iv) proposed by the Jamaica Social Investment Fund (JSIF); (v) part of the CRP pilot; or (vi) proposed by MNS under the Citizens Security and Justice Program (CSJP). The main socio- economic data used in selecting these communities included a combination of factors, and each community was categorized by their “volatility” (defined by levels of crime, violence related injuries, presence of gangs), and “vulnerability” (defined by levels of poverty, teenage pregnancy, literacy, ex-convicts, accessibility of communities, child abuse, and presence of squatters). For all the communities selected, additional considerations included levels of access to basic services, formality of the settlement (extent of government versus private land), readiness for intervention (both for works and crime and violence prevention), relative risk to surrounding communities, levels of intervention by community or national organizations/programs, and political representation. The communities either maintained a high ranking on the CRP’s assessment, or were proposed by one of the implementing agencies. The list of the ICDP communities and their socio-economic characteristics are provided below.

Table 1: Integrated Community Development Project Communities

% of Persons Volatility & 28 29 Below Vulnerability Communities Parish Population Households 31 National Ranking (Scale of 1-318, with 1 Poverty being highest) Line30 York Town Clarendon 4,271 1,150 21.79 28 Treadlight Clarendon 1,585 411 16.19 55 Curatoe Hill /Canaan Heights Clarendon 3,949 1,041 28.91 113 Hannah Town Kingston 3,407 1,049 27.96 2 Denham Town Kingston 8,340 2,788 37.07 11 Tivoli Gardens Kingston 4,379 1,087 12.47 32 Majesty Gardens St. Andrew 3,065 852 54.62 4 Rose Town St. Andrew 2,599 774 38.10 7

28 Planning Institute of Jamaica. 29 Ibid. 30 Jamaica Survey of Living Conditions (2008). 31 Community Renewal Programme (2011).

% of Persons Volatility & 28 29 Below Vulnerability Communities Parish Population Households 31 National Ranking (Scale of 1-318, with 1 Poverty being highest) Line30 Greenwich Town/ Newport West St. Andrew 7,569 2,334 27.16 15 Wilton Gardens/ Rema St. Andrew 4,832 1,460 34.96 30 Maxfield Park St. Andrew 4,744 1,364 17.36 46 Steer Town St. Ann 5,110 1,383 25.55 n/a(non-CRP community) Spanish Town Central (Ellerslie Pen) St. Catherine 22,075 5,976 18.03 13 Retirement St. James 1,182 295 20.66 8 Anchovy St. James 3,516 941 15.12 15 Barrett Town St. James 2,017 552 6.78 19 Granville St. James 5,699 1,505 17.43 24 Russia Westmoreland 872 272 15.22 n/a (non-CRP community) Total 89,211 25,234

Community Profiles32

Anchovy

15. Anchovy is a community of 2,765 residents in the Cambridge Development Area in the parish of St. James. There are 864 households with an average size of 3.2 persons in each and about 40 percent are female-headed. The predominant economic activity of the community is farming and 78 percent of household heads are employed.

16. There are five schools in Anchovy, no health care centers, and one community facility. The majority of households have water closets not linked to sewer systems and the primary method of garbage disposal is burning. Only 5 percent of the community shares toilet facilities and equal amounts of residents have water piped privately and publicly.

17. Most of the residents in Anchovy perceive the community to be safe and almost 70 percent of all crimes are reported to the police. The most pressing issue is poor road conditions and this is coupled with a high prevalence of flooding in the area. The other development challenges prioritized are high unemployment levels, poor representation by elected officials, limited or no opportunities for training, and high levels of high school drop outs. Major development challenge: Poor road conditions

Barrett Town

18. Barrett Town is a small community comprised of 800 residents in the Greater Montego Bay area in St. James on the north coast of Jamaica. There are 200 households with an average size of 4 persons and 57 percent are female-headed. The population is very youthful with

32 Social Development Commission.

over half under the age of 24. There are three schools in the community and almost 80 percent of household members are enrolled in an educational institution and have attained academic qualifications on the secondary level. Despite this, the four major problems identified by the community were high unemployment levels, prevalence of high school drop outs, and limited or no opportunity for training, and overall low skill levels.

19. In terms of social services, there is a community center serving the community, garbage collection is frequent, and there are two health centers in close proximity. Residents in Barrett Town with access to private water piped to their dwelling accounts for a little under 40 percent and households mostly utilize soak-away sanitation systems. Gas is widely used as a primary source of cooking fuel and almost all households have access to electricity.

20. In Barrett Town, all crimes are reported to the police and 97 percent of the community feels safe. The only security issue identified was the presence of overgrown lots in the area. Other than development issues surrounding educational needs and employment availability, the only other challenge Barrett Town faces is poor representation by elected political leaders.

Major development challenge: Unemployment

Curatoe Hill/ Canaan Heights

21. Canaan Heights is a community of 1994 residents located in the district of Curatoe Hill in the parish of Clarendon. The district has a large average household size of 4.7 persons and over 50 percent are under 24 years of age. There are three health care centers and four schools in Curatoe Hill, but only one basic school and no health care centers are in the community of Canaan Heights. The community also has the only community facility which serves the wider district area as well.

22. Most residents burn their garbage as a method of disposal and the trucks pick up 60 percent of the time. Pit latrines are the most common toilet facility utilized and water is accessed through public piping. The district development issues are not all reflected in the Canaan Heights community. The latter prioritizes crime and violence, high levels of high school drop outs, and overall low skill levels are the major problems. In fact, gangs and gang warfare is the most prominent security issue of the community. The larger district of Curatoe Hill also faces many of these challenges, but additionally needs support in addressing the poor conditions of roads, underrepresentation by elected political leaders, and inadequate street lights as an important security concern.

Major development challenge: Not stated

Denham Town

23. Located in the downtown, Kingston area, Denham Town is an urban community of 6,279 residents in 1,610 households with an average size of 3.9 persons. The population is youthful, with over 60 percent under 24 years of age. The majority of household heads are female, and 71 percent are employed in elementary occupations, service work, and shop keeping. There

are eight schools in Denham Town and a high percentage of household heads have academic qualifications and the community members have a good attendance rate in schools.

24. Residents of Denham Town have good access to the necessary social services. Garbage is collected frequently, most households have water closets lined to a sewer system, access to electricity is not problematic, and a high proportion of the community has publicly piped water available. The most common housing material used is concrete and block and the majority of residents own their homes.

25. Crime and violence is perceived as low in the community whereby only 3 percent feel unsafe. There is however the presence of gangs and gang warfare. The main development challenges of Denham Town are focused on job availability and social service provision. For the former, most issues surround unemployment, low skill levels, and high levels of high school drop outs, and for the latter the residents outlined problems with water pressure and continuity. The chief environmental issue is illegal dumping of garbage and block drainage channels. There are also broad issues with negative perceptions and stigma within the community.

Major development challenge: Unemployment

Granville

26. Granville is a community of 5,074 people residing in 1,274 households in the parish of St. James. 50 percent of the population is below 24 years and the average household size is 3.6 persons. There is one health care center but over 15 percent of residents do not visit a health facility for primary care. Members of the community have access to many educational institutions and recreational facilities in close proximity. Garbage pick-up trucks are utilized most frequently for waste disposal and over 90 percent of households have access to public water. 66 percent of residents use water closets which are not linked to a sewer and about a quarter have pit latrines, with 23 percent sharing toilet facilities.

27. The most pressing issue in Granville is crime and violence. 60 percent of the community perceives the area to be unsafe and only 47 percent of crimes are reported to the police. Furthermore, gangs and gang warfare poses a big security problem and restricts movements in and out the community at late evenings and nights. The major types of crimes occurring in Granville are murder, robbery, and shooting.

28. Other development challenges the community faces are environmental issues of illegal dumping of garbage, blocked drains, and noise pollution. There are high unemployment levels, poor parenting, and negative perceptions surrounding Granville. A few other contributing concerns are poor road conditions, land tenure difficulties, poor treatment by security forces, high levels of high school drop outs, teenage pregnancy, lottery scams, irregular collection and improper disposal of garbage, and lack of community morale.

Major development challenge: Crime and violence

Greenwich Town

29. Greenwich Town is a fishing community of 4,460 residents in the parish of St. Andrew. There are 1,149 dwellings, majority female-headed, with an average household size of 3.8 members; half of these members being under 24 years. Fewer than 50 percent of household heads have academic qualifications, most of which only attended school up to the secondary level, and 76 percent of households are employed. The majority of the community has frequent solid waste collection and 38 percent of households share toilet facilities with only 2.5 percent of households utilize pit latrines. Houses are mostly constructed with block and zinc and there is a community center however it is unused and dilapidated.

30. Over 50 percent of residents in Greenwich Town feel unsafe and gang warfare poses a threat to the community. Over 80 percent of crimes are reported to the police and the most common ones are assault with a weapon and sexual assault.

31. The main economic activity of Greenwich Town is fishing and it encourages income generation and tourism for the community. However, access to electricity was identified as a threat to the community’s prosperity, although 93 percent of households receive electricity. Hence, the prioritized development challenge indicated was a lack of street and beach lighting, and this can be attributed to deteriorating electrical connections and issues surrounding bill payment. Some of the other development issues within Greenwich Town were; inadequate housing developments, lack in health care facilities, defined boundaries for fishermen which hinders where they can fish, no formalized garbage disposal plans, lack of educational training programs, and no insurance provision for fishermen.

Major development challenge: Lack of street and beach lighting

Hannah Town

32. Hannah Town is a community of 1,736 residents in downtown Kingston. There are 560 households with an average size of 3.1 and 55 percent are female-headed. The population of Hannah Town comprises majority youth below 24 years and a little under half of these youth have academic qualifications. There are six schools in the community and 63 percent of household members are enrolled in an educational institution. However, over 60 percent of household heads have no academic qualifications and their main occupational sector is service, shop, and market sales.

33. There is a health care facility located in Hannah Town and the majority of the population utilizes hospitals for primary care. 60 percent of households dispose of their garbage with collection trucks and illegal dumping was flagged as a major environmental issue in Hannah Town. Although over 90 percent have water closets linked to a sewer, 41percent share toilet facilities and only 24 percent of residents have water piped to their dwelling. Almost the entire community has access to electricity and gas is the predominant fuel used for cooking purposes, but 35 percent also utilize charcoal.

34. The prioritized development issues of Hannah Town are unemployment, poor parenting, high levels of high school drop outs, and a lack of opportunity for training and employment. Crime and violence also stood out with gangs and gang warfare being the most prominent security issue. 18 percent of residents indicated that they did not feel safe in Hannah Town, and many said that the area stigma affects their ability to get jobs outside of the community.

Major development challenge: Unemployment

Majesty Gardens

35. Majesty Gardens is an urban community in the parish of St. Andrew, with 3,168 residents in 880 households. The average household size is 4 and they are largely female-headed and almost 70 percent of the area’s population is under 24 years. The primary economic activity of the areas is fishing and unemployment associated with access to educational facilities, overall attendance and attainment levels are problematic in Majesty Gardens. Only 32 percent of household heads are employed and 22 percent of them have attained some academic qualifications. There is only one school in the community providing schooling up to grade 6, and only 4 percent of all household members have attained academic qualifications.

36. There is a health facility and a community center in Majesty Gardens. Although residents indicate that they dispose of garbage primarily through pick-up trucks, garbage accumulation is an environmental issue affecting the community. Additionally, a quarter of the population uses informal means of sanitation for human waste disposal. Houses are mostly constructed with concrete and board and over 50 percent of residents own both their homes and the land.

37. Over 50 percent of residents feel unsafe in Majesty Gardens and gang warfare is prevalent with most crimes being robbery with the use of a gun. Crime and violence has resulted in restricted movements in the evenings and nights. This has contributed to the main development challenges within the community, along with unemployment and poor parenting. Other issues that were raised are focused on a lack of education resulting in low literacy levels, poor infrastructure and environmental practices, children not receiving enough nutrition, and the neglect of maintaining sporting facilities.

Major development challenge: Unemployment

Maxfield Park

38. Maxfield Park is located in Kingston and has a population of around 5,103 people. There are 1,423 households and an average household size of 3.6. In terms of social service provision, there is one health center in the community, two state-operated Children’s’ Homes, and eight schools, however six of eight lack proper certification. The main prioritized development challenges the community identified are poor sanitation, poor housing infrastructure, high levels of unemployment, poor road conditions within the community, and no proper drainage system.

Major development challenge: Not stated

Retirement

39. Retirement is a community of 7,169 residents in 1,838 households with an average of 3.9 persons per household. There are three basic schools, no community facilities or health centers. 50 percent of households are headed by females and although 62 percent are employed only 31 percent have academic qualifications. A high percentage of household members over 14 have no qualifications and the main development issues identified are focused on unemployment, high levels of high school drop outs, and overall low skill levels.

40. The three main methods of garbage disposal the community utilizes are pick-up trucks, community receptacles, and burning. Most residents have access to public water and toilet facilities are either water closets not linked to a sewer or pit latrines. 13 percent of Retirement residents share toilet facilities and houses are mostly built with block and board.

41. Almost 90 percent of all crimes are reported to the police and under a fifth of the population perceives the area to be unsafe. Street lighting is the main security issue and this restricts movements in and out of the community at late evenings and nights. Other than the development challenges associated with education, the only other one identified was poor representation by elected political leaders.

Major development challenge: Not stated

Russia

42. Russia is a peri-urban community of 2,324 residents in the parish of Westmoreland. There are 759 dwellings with an average household size of 3.1 members, and a large percentage of households are single-person. Even though female-headed households are fewer in number, the families in these households are much larger than those headed by males. Fishing, manufacturing, and vending are the primary economic activities of Russia. There is only one educational institution in the community and less than half of household members have academic qualifications and over 75 percent of household heads have none. There is an overall low attendance in schools and this is a result of the area stigma related to the prevalence of crime and violence.

43. The houses in Russia are mostly built using board and although almost 90 percent are owned by its occupants, only 20 percent of the land is owned. Garbage trucks do not collect frequently and so many community members choose to burn their garbage. Pit-latrines are the most commonly used toilet facility, and 44 percent utilize shared toilets, mostly with 2-4 other households. The majority of homes in Russia have access to public water, but very few have it piped to their dwelling; in fact, only 36 percent of residents have legal NWC water connections. 95 percent of households receive electricity and most residents use a combination of gas, charcoal, and wood as a source of fuel for cooking.

44. Crime and violence is identified as a development challenge in Russia. 80 percent of crimes are reported to the police and the main effect crime has on the community is restricting movements in and out of the community in late evenings and nights. Other priority issues in the community were unemployment, high levels of illiteracy, low skill levels and lack of training programs, and problems with land tenure. To begin circumventing some of these problems, there have been public safety programs proposed and implemented, and plans have been made for a community facility, “The Source” which would provide internet, business training, and social service provision for the community.

Major development challenge: Unemployment

Spanish Town Central/ Ellerslie Pen

45. Ellerslie Pen is an urban community in the development area of Spanish Town located in the parish of St. Catherine. Spanish Town Central has 41,119 residents in 10,750 households with approximately 3.8 persons in each. 65 percent of the households are female-headed and more than half of the population is under 24 years. There are seven schools in the area, however only 28 percent of household heads have attained academic qualifications, and 55 percent currently have employment. Unemployment was listed as the most pressing development challenge the community faces.

46. Residents make use of the garbage collection trucks in disposing of their waste and the two most commonly used toilet facilities are water closest linked to a sewer system and pit latrines. Furthermore, 36 percent of residents in Spanish Town Central share toilet facilities. Almost all households have access to electricity and 65 percent of water is piped to residents’ yards.

47. Other than unemployment, prioritized development challenges include the need of a community center, poor street lighting, bad road conditions, and the need for improved water supply. Additionally, gun related violence was indicated as the most important security issue that needed to be resolved.

Major development challenge: Unemployment

Steer Town

48. Steer Town, in the parish of St. Ann, is a large peri-urban community comprised of 11,639 residents living in 2,762 dwellings. There are 3,063 households with an average size of 3.8 and a little under half the population is below 24 years. There are three schools in Steer Town and 77 percent of household members 14 years and over have academic qualifications and almost 60 percent of households are enrolled in an educational institution but despite this, only 23 percent of household heads have academic qualifications.

49. The majority of the community has adequate access to public utilities. Most residents receive publicly piped water and the main toilet facilities utilized are water closets and soak-away systems. Only 11 percent of Steer Town shares toilet facilities and garbage is predominantly

disposed of through pick-up trucks. There is a health care center and a community center in the community.

50. Gang warfare is the main security issue in Steer Town although 60 percent of the community feels safe. Most residents said that crime and violence has no effect on their lifestyles and a about a quarter indicated that crime levels restricted movements in and out of the community in late evenings and nights. The development challenges Steer Town experiences are illiteracy, high levels of unemployment, the prevalence of crime and violence, the development of informal settlements, drug abuse, and child abuse.

Major development challenge: Illiteracy

Tivoli Gardens

51. Tivoli Gardens is an urban community of 16,500 residents that make up 3,810 households in the downtown Kingston development area. 60 percent of these households are headed by females and the average household size is 4 with only 26 percent of members having academic qualifications. Half of the homes are constructed with concrete and block and less than 50 percent of the land is owned by the residents. The majority of the community has access to electricity and piped water into their yard, however, the water pressure is often low and almost half of the households in Tivoli Gardens share toilet facilities.

52. The dominant economic activity in Tivoli Gardens is street vending and thus unemployment is the most critical development issue facing the community. Other development challenges include high levels of illiteracy, poor parenting, and inadequate educational programs. 96 percent of residents feel safe and 92 percent perceive crime levels to be low, but crime and violence is identified as a major security issue in the community, with gangs and gang warfare the prioritized concern.

Major development challenge: Unemployment

Treadlight

53. Treadlight is a peri-urban community of 1,900 residents in 398 households. The average household size is 5 persons and 66 percent is female-headed and over 60 percent of the population is comprised of youth under 24 years. The primary economic activities are wood work, small scale farming, and small businesses. There are two schools, one community center and no health care facilities in the community, but high percentages of residents are enrolled in schools and utilize hospitals for primary care.

54. Residents equally use garbage collection trucks and burning as methods of waste disposal. The most commonly used toilet facilities are water closets linked to a sewer and pit latrines. Water is accessed from public piping and less than 20 percent of the community receives it through private catchments. Most homes and land are owned and built with concrete and block or board.

55. Most crimes are reported to the police and 20 percent of residents feel unsafe in Treadlight. The main security issues are overgrown lots and inadequate street lighting. However, crime and violence is prioritized as a development problem in the community. Other issues identified are limited to no opportunities for training and employment, poor road conditions, and low skill levels.

Major development challenge: Crime and violence

Trench Town (Rose Town and Wilton Gardens/Rema)

56. Trench Town is a large urban district in downtown Kingston. The population is approximately 27,000 comprising over 7,000 dwellings and households. The average household size is 3.8 and most are female-headed. The main occupations of residents are service work and market sales. Rose Town and Rema are communities located in the district of Trench Town.

57. Within the district, there are 20 schools and most household members are enrolled although few have received academic qualifications. A large proportion of the population has private water access, most use water closets for toilet facilities, and garbage is collected frequently. Over 80 percent of residents feel safe and 68 percent of crimes are reported to the police, most of which consist of domestic violence and robbery with a gun.

58. The most pressing issues in Trench Town are unemployment, lack of training programs, high levels of high school drop outs, and poor parenting. In Rose Town and Rema the development challenges reflect those of the district, but some are specialized for each community. Poor parenting, crime and violence, and unemployment were problems across both communities. However in Rose Town, the main issue is housing, along with sanitation, poor social networking, poor road conditions, lack of access to water, and the negative stigma associated with the community. In Rema, the additional challenges faced are high levels of illiteracy and a need for better infrastructure development.

Major development challenge: Housing

York Town

59. York Town is a community of 2,794 residents located in the parish of Clarendon. The average household size is 4.4; however, some households have up to 17 members with 62 percent being female-headed. For the 635 dwellings in the community, only half of the household heads are employed and the primary economic activity for the area is agriculture. There are six schools in the York Town and 75 percent of households are enrolled, but only a little more than 50 percent attained some level of academic qualifications.

60. The community has access to most social services with a National Water Commission pumping station, York Town Health Center, York Town Community Center, and decent public transportation networks. Sanitation is also well implemented, with garbage collection

by trucks for almost 80 percent of York Town and most households utilize water closets and none share toilet facilities.

61. Crime and violence is sometimes high and this is attributed to the lack of a police station or police posting, however, 80 percent of York Town’s residents perceive the community to be safe. Over 50 percent of the population stated that there was likelihood for them becoming victims of crime in the next 12 months, but they determined crime and violence levels to be low. Furthermore, crime was not identified as a major development challenge; instead the highest priorities were high unemployment levels, lack of street lights, a prevalence of high school drop outs, poor parenting, inadequate drainage, and poor representation by elected political leaders.

Major development challenge: Unemployment

Annex 7: Economic Analysis JAMAICA: Integrated Community Development Project (P146460)

1. It is recognized that the poorer segments of Jamaica’s population lack adequate access to basic infrastructure and social services, and most reside in urban areas. Improving the built environment through urban investments is essential to increase the quality of life in Jamaica and reduce and alleviate poverty. Almost all of the ICDP communities have a higher percentage of persons living below the national poverty line of 17.6 percent (see Table 1, Annex 6). In accordance with the Bank’s goal of shared prosperity, ICDP will take a community-focused approach in improving the quality of life for the most socio-economically vulnerable people and determine the impact of investments using a cost-benefit analysis. More than half of the communities prioritized issues of water supply, sanitation, roads, and drainage as key areas for improvement, and all associated at least one of these sectors as the foundation of other challenges linked to public safety, the environment, or income generation. The economic value of improving these sectors therefore contributes notably towards the goal of implementing sustainable anti-poverty strategies on a national scale.

2. The economic analysis of the Integrated Community Development Project for Jamaica was carried out for works under component 1, which shares 67 percent of the total costs. The evaluation was made for works in the following sectors: (i) water; (ii) sanitation; (iii) drainage; and (iv) roads. The evaluation was carried out from an economic perspective, as it is a non- revenue generating project. The evaluation was complemented with sensitivity, and risk analyses. Table 1. Project Costs

US$ Million % Basic Infrastructure and Access to Services 28.0 67% Public Safety Enhancement and Capacity Building 7.2 17% TA for Strengthened Urban Management 2.8 7% Project Management 4.0 10% Total 42.0 100%

3. The Project will impact positively the socio-economic development as it will generate more economic benefits than expected costs. The benefits in drainage threefold the costs, in water, benefits are twice as much its costs, the returns are higher than 35 percent in both cases. For sanitation, the project will be viable for the alternative that includes sewer connection and only when investment costs per household are reduced by 25 percent, that is up to US$2,000. All other sanitation subprojects with on-site disposal systems, such as, septic tanks, tile field, and soak away (pit tank) were no viable.

Table 2. Results of the Economic Analysis

Present Value of Flows (US$) Costs Benefits Net Benefit IRR Water (Results per household) 329 632 303 36% Sanitation (Results per household) 2,748 2,049 (699) 5% Drainage (Results per Km) Alternative 1: v-drain 85,620 204,927 119,306 48% Alternative 2: u-drain 109,194 204,927 95,732 41% Alternative 3: Curb & Channel 68,664 204,927 136,262 60%

4. For road works, results show that concrete and double surface dressing options have very similar costs with just one percent difference, being the latter smaller. However, the pros of the concrete alternative give more reassurance for the sustainability of the project, as it is a long lasting alternative and require less maintenance along the years. Hence, this alternative from the economic point of view is recommended.

Table 3. Cost per Km of Road for Different Alternatives

Cost per Km (US$) Concrete Asphalt Concrete Double surface dressing Equivalent cost per year 45,624 74,919 45,164

5. Sensitivity and risk analyses show a robust Project with high probability of yielding positive economic returns.

Methodology

6. Two approaches were used for this evaluation: (i) Cost benefit analysis: for water, sanitation, and drainage; and (ii) Cost effectiveness analysis for roads. The cost benefit analysis was used to measure net benefits generated. Expected benefits and costs were measured by comparing two scenarios: with and without project. Each sector was evaluated from an economic perspective, as they are not revenue-generated projects. The evaluation was complemented with sensitivity and risk analyses. Cost effectiveness approach was used for roads, as there was not enough information to estimate associated benefits. This approach compares costs of different alternatives that would achieve same benefits.

7. A summary of the methodology is presented below:

Table 4. Methodology

Type of work Intervention Methodology Benefits Approach Water piped Convenience on Cost Benefit Water connection (on the getting the water Travel cost analysis yard) on the house Sanitary Facilities Cost Benefit Sanitation and sewage disposal Health Benefits Avoided costs analysis system Rehabilitation and Cost Effectiveness Improve access to Alternative with Roads Construction of Analysis the community the Least cost:

Type of work Intervention Methodology Benefits Approach roads

Saving on Drain channels and Cost Benefit Drainage Maintenance costs Avoided costs pipes Analysis of roads

Cost Benefit Analysis for Water, Sanitation, and Drainage

8. This evaluation employed the avoided costs approach to derive the costs of inadequate services. For doing that, the costs of handling water insecurity, lack of sanitation, and poor drainage system were estimated. Explicit costs included: investments costs of water storage facilities; health costs associated with lack or poor on-site sewage disposal facilities; and maintenance costs of roads associated with lack of drainage system. Implicit costs include opportunity cost of time associated with water collection and lack of sanitation.

9. Costs and Benefits were expressed at 2013 prices, and estimated over a 30 year-period for water and drainage facilities. For sanitation and roads, lifetime varied according to alternative. The discount rate used is 10 percent as a proxy of the opportunity cost in Jamaica.

Water

10. Economic benefits were estimated as the avoided costs that will come along with lack of water connections. Without project, households in selected communities get the water from public standpipes, and fetch it to their houses. There was no problem with quality of water, as it is potable in all standpipes, according to information provided by the water utility (NWC- National Water Commission). Households use the water for cooking and drinking with no additional measures for treating it. In general, water supply is continuous and no additional source of water is needed.

11. Economic costs associated with lack of water connections were estimated as: (i) time loss associated with daily collection of water; and (ii) cost of plastic containers to storage water. According to surveys in the field, the average time spent per person to fetch water from the standpipe is about 20 minutes per day per household. The economic cost of time was valued as 50 percent of the estimated minimum wage rate of about J$1,100 per day (approximately US$ 1.4 per hour), as women and children are generally in charge of this chore. The cost of plastic containers used by households were estimated as J$2,000 for plastic containers with a lifetime of 2 years and each household has about three of those containers.

12. The evaluation measured costs and benefits per household. Investment consisted of pipe extension to provide water at dwelling’s yard, which according to interventions made under ICBSP has an average cost of US$329 per connection.

Table 5.Cost of Water Interventions per Household

Cost of Water Interventions (Cost per household) J$ US$ Mains 5,000 48 Lateral 30,000 281 Total 35,000 329

13. Results show that benefits twice as much the costs; expected net benefits of US303 per household; and return of 36 percent.

Table 6. Results of the Economic Evaluation per Water Connection

NPV of Flows (US$) Results per Household Costs Benefits Net Benefit IRR Water connection 329 632 303 36%

Sanitation

14. For this evaluation health and welfare benefits were used. These benefits were quantified as the averted costs when sanitation improves. Health costs consisted of: (i) healthcare costs from formal health care services and traditional healers; (ii) productivity costs equivalent to welfare or income lost due to sickness time; and (iii) costs of premature death, which correspond to discounted lifetime income losses for death. Welfare benefits consisted of reduction or elimination of time spent searching for a place to defecate. The expected benefits and associated costs were calculated per household.

15. Costs. The evaluation included different options for sanitation according to actual costs registered in ICBSP. The options consisted of traditional toilet connected either to the sewer system, or to on-site disposal system. The costs of each of the alternatives are as follows:

Table 7. Investment Costs per Household from Different Sanitation Alternatives

Investment Cost (US$) of Alternatives per hh Toilet & Connection On-site water to sewer disposal O&M per closet33 system systems Total month 1. Sewer Connection Toilet & connection sewer 2,387 287 0 2,674 1 2. On site disposal systems Toilet and septic tank 2,387 0 3,629 6,016 38 Tile fiel and toilet 2,387 0 4,298 6,685 38 Soak away (Dry pit) 2,387 0 2,388 4,775 38

33 The costs of toilet and water closet consist of costs of: foundation, blockwall, floor, roof, door and frames, window, toilet, and face basin.

16. These alternatives include all the costs associated with construction of a water closet; however not all components are always needed as some houses need little adjustments to install the toilet inside the house.

17. Benefits. To estimate health benefits the current costs of treating water borne diseases, time lost, and premature death were calculated and then the expected reduction when sanitation facilities are implemented. To estimate wealth benefits, time value was estimated.

18. Health Costs of treating waterborne diseases in Jamaica were based on information of and number of cases of illness and deaths caused by gastrointestinal diseases provided by the Ministry of Health. The information corresponded to 78 health facilities, including public and private primary health facilities and accident and emergency department of hospitals. The data even though do not permit to estimate incidence rates; it was used for this evaluation as it gave good estimate of National trends and presence of the disease.

Table 8. Incidence of Gastrointestinal Diseases in Jamaica

Year Total cases Younger than 5 5 or older 2004 40,922 25,302 15,620 2005 21,155 11,090 10,065 2006 44,878 28,061 16,817 2007 36,213 19,393 16,820 2008 44,146 24,155 19,991 2009 39,282 20,306 18,976 2010 51,379 24,575 26,804 2011 40,751 19,729 21,022 2012 30,315 12,472 17,843 Source: Ministry of Health of Jamaica.

19. Health Related Productivity Cost. Disease takes away people from daily activities, which means loss of time for children and adults. Economic cost of time was valued for adults as 50 percent of the estimated national average wage rate of about J$140 per hour (US$1.4 per hour). It was assumed that three days were lost per case of disease.

20. Costs Associated with reduced well-being and quality of life. The burden of disease from mortality and morbidity is measured as number of DALYs (Disability-Adjusted Life Year), One DALY can be thought of as one lost year of “healthy life”. According to the World Health Organization, DALYs for a disease or health condition are calculated as the sum of the Years of Life Lost (YLL) due to premature mortality in the population, and the Years Lost due to Disability (YLD) for people living with the health condition or its consequences (DALY = YLL + YLD). The YLL correspond to the number of deaths multiplied by the standard life expectancy at the age at which death occurs (YLL=N x L), where N=number of deaths, and L=standard life expectancy at age of death in years. YLD is calculated as the number of incidents multiplied by the average duration of the disease and a weight factor that reflects the severity of the disease on a scale from 0 (perfect health) to 1 (death) (YLD=IxDWxL), where: I=number of incident cases; DW disability weight; and L+ average duration of the case until remission or death (years). WHO uses a 3 percent discounting rate in its DALYs calculation.

21. The following table presents the baseline data for estimating some of the health burden associated with diarrhea. The information presents the rate of number of deaths caused by diarrhea per 100 thousand people, as well as the DALYs rates, and the associated standardized age. For Jamaica, WHO shows that the number of deaths caused by diarrhea is 9.3 per 100 thousand population and the DALYs caused by diarrhea are 324. The resulting number of DALYs per case of diarrhea mortality is 34 years and reflects an annual discount rate of 3 percent.

Table 9. Death and DALYs Caused by Diarrhea in Jamaica

Jamaica information 2004 Units Deaths2004 0.25 Thousand DALY 2004 8.60 Thousand Death rates 9.30 Per 100 thousand population DALY rates 324 Per 100 thousand population Age standardized death rates 8 Per 100 thousand population Age standardized DALYs 283 Per 100 thousand population Years of life expectancy at age DALYs per case of diarrheal mortality 34 of death (discounted at 3%) WHO. Measurement and Health Information February 2009. Data for Jamaica

22. Cost of Premature Death has an economic impact due to the loss of wages and economic outputs generated, during years of life expectancy at age of death. In Jamaica, the number of years lost was estimated by WHO as 34 years. For this evaluation, the value per year lost was estimated using the minimum wage and then the flow of costs was discounted with a 3 percent rate. Results show that the costs of DALYs caused by each death caused by diarrhea US$62 thousand34. Total annual cost of deaths caused by diarrhea in Jamaica is estimated as US$15.7 million, which translated to household, is about US$23 per year.

23. Wealth Impact was measured as a reduction of time spent when sanitary facility is available at the house. Without sanitation, population has to find a place for either open defecation, or wait to use shared latrines. Both options imply time loss, which was estimated at about 15 minutes per member of the household once a day. To value the time the same assumption used for the productivity costs was used. All options evaluated in sanitation will attain the full convenience benefit, as the household will have the sanitary facility inside the house.

24. Impact of appropriate sanitation on health. The effect of improved sanitation on health is assumed at 45 percent when accompanied by hygiene practices, such as hand washing. When hygiene practices are not present the impact reduces to 37.5 percent. The Project is designed to include hand-washing facilities with each sanitation solution and so this evaluation uses the 45 percent impact estimate. However, there is a risk that households do not change behavior and the expected benefit is not fully achieved. The sensitivity and risk analyses include this possibility and evaluate its impact on the outcome.

34 This value results from discounting during 34 years a monthly minimum salary of US$ 244 at three percent annual rate.

25. The assumptions of the impact of sanitation were taken from the results of the studies carried out by Pruss at al. (2002)35 and Esrey’s36. The studies derived the relative risks of diarrhea illness from international literature and quantified the shift of risk when transitioning between different water and sanitation scenarios (Following table presents the selected scenarios and their corresponding relative risks). The scenario I is considered the ideal scenario in which there is no transmission of diseases thorough water, sanitation, or hygiene. In this case the disease is transmitted through other mechanisms, mostly food or air (aerosols, or person to person). The report reviews literature on the topic and suggests that the share attributable to water, sanitation, and hygiene in the transmission of the disease in the United States is 60 percent.37

Table 10. Relative Risk under Selected Exposure Scenarios

Relative Risk Pathogen Reduction between Situation Description associated load scenarios with scenarios NO IMPROVED WATER SUPPLY AND NO BASIC SANITATION in a country that is not VI Very High 11.00 extensively covered by those services, and where water supply is not routinely controlled IMPROVED WATER SUPPLY and no basic sanitation in a country that is not extensively Vb Very High 8.7 20.8% From VI to Vb covered by those services, and where water supply is not routinely controlled BASIC SANITATION but no improved water supply in a country that is not extensively covered Va High 6.9 37.5% From VI to Va by those services, and where water supply is not routinely controlled IMPROVED WATER SUPPLY AND BASIC SANITATION in a country that is not extensively IV High 6.9 37.5% From VI to IV covered by those services, and where water supply is not routinely controlled IV and improved access to drinking water IIIc High 6.9 37.5% From VI to IIc (generally piped to household) IIIb IV and improved personal hygiene High 6.05 45.0% FromVI to IIIb IIIa IV and drinking water disinfected at point of use High 4.5 59.0% From VI to IIIa Regulated water supply and full sanitation coverage, with partial treatment for sewage, Medium to II 2.5 65% From IV to II corresponding to a situation typically found in Low developed countries IDEAL SITUATION, corresponding to the I absence of transmission of diarrheal disease Low 1.0 60% From II to I through water, sanitation, and hygiene Based on Prüss et al. 2002 26. The expected scenario to be attained with sanitation works corresponds to go from scenario Vb in which water is available but no sanitation, to IV in which both services are on place. The

35 Priuss, Annette; David Kay; Lorna Fewetrell; and Jamie Bartram (2002). Estimating the Burden of Disease from Water, Sanitation, and Hygiene at a Global Level. Environmental Health Perspectives. 110 (5). 36 Esrey SA. Water, Waste,and Well-Being: a multicounty Study (1991). Am J Epidemiol 143 (6) 703-708. 37 Using the review prepared by Mead et al.: Mead PS, Sluttsker L Dietz V, McCraig LF, Bressee JS, Shapiro C. Griffin PM, Tauxe RV (1999). Food Related Illness and Death in the United States. Emerg Infect Dis 5(5) 607-625.

impact is 37.5 percent. When the facility and usage is accompanied with improved personal hygiene the impact increases to 45 percent.

27. Results. Results show that costs surpass benefits in all cases. The closest alternative to become viable is the one that includes the connection to the sewer system, only when its costs are reduced 25 percent, that is, US$2,000 or lower. The alternatives that include on-site disposal systems are too expensive as their costs are more than four times the associated benefits.

Table 11. Economic Results for Sewerage Connection

Present Value of Flows (US$) Net Results per Household (US$) Costs Benefits Benefit IRR 1. Sewer Connection Toilet and connection to sewer 2,748 2,049 (699) 5% 2. On site disposal systems Toilet and septic tank 9,394 2,049 (7,345) Tile fiel and toilet 13,692 2,049 (11,643) Soak away (Dry pit) 8,152 2,049 (6,103)

Drainage

28. Economic costs associated with lack of drainage were estimated as savings costs on maintaining and repairing roads. The cost information was provided by the JSIF and corresponded to actual investment and maintenance costs on similar roads benefited with ICBSP.

Table 12. Investment -Maintenance Cost per Km of Different Alternatives for Drainage

Curb & Cost per Km v-drain u-drain Channel Drainage Investment cost 28,653 28,653 23,878 Lifespan 25 25 25 Initial cost annualized 3,157 3,157 2,631 Maintenance cost per year 6,080 8,596 4,780 Cost per year (initial plus maintenance) 9,237 11,753 7,411

Maintenance of roads with drainage 14,327 14,327 14,327 Maintenance of roads w/o drainage 23,878 23,878 23,878 Rehabilitation of roads with drainage 38,204 38,204 38,204 Rehabilitation of roads w/o drainage 57,307 57,307 57,307 Frequency of rehabilitation with drainage 6 6 6 Frequency of rehabilitation w/o drainage 3 3 3

29. When investment and maintenance costs are included it is found that the least cost alternative corresponds to curb & channel. However the right technology will be applied according to characteristics of the terrain and type of road as long as it is economically viable.

Table 13. Annual Cost per Km of Different Alternatives for Drainage

Cost per Km (US$) v-drain u-drain Curb & Channel Investment Cost 28,653 28,653 23,878 Lifespan YEARS 25 25 25 Maintenance cost 6,080 8,596 4,780 Total cost per year 9,433 10,919 6,866

30. To test the economic viability, the flow of costs and benefits were projected for the lifetime period for both scenarios with and without project. Results show that all alternatives are economically viable with returns higher than 40 percent.

Table 14. Results of the Economic Analysis for Different Alternatives of Drainage

Present Value of Flows US$ Results per Km Costs Benefits Net Benefit IRR v-drain 85,620 204,927 119,306 48% u-drain 109,194 204,927 95,732 41% Curb & Channel 68,664 204,927 136,262 60%

Cost Effectiveness for Road Works

31. Cost of different alternatives with same benefits where compared to find the least cost option for road works. Information was provided by the JSIF and corresponded to actual cost incurred in ICBSP. Three alternatives were evaluated: Concrete, asphalt concrete, and double surface dressing.

Table 15. Investment and Maintenance Cost per Km of Different Alternatives for Roads

Asphalt Cost per Km (US$) Concrete Concrete Double surface dressing Initial cost 269,230 210,124 114,613 Lifespan 25 15 10 Maintenance cost per year 10,000 28,650 14,327

Time to rehabilitation 15 6 4 Rehabilitation cost 38,461 76,409 57,306

32. The pros and cons highlighted by the JSIF are as follows: (i) Concrete alternative. Pros: It is a very long lasting, good traction, and little maintenance. Cons: It has the highest initial cost; (ii) Asphalt Concrete alternative. Pros: It has prolonged surface life, not much maintenance, and good drainage. Cons: It has high installation cost; and (iii) Double Surface Dressing. Pros: Least Initial and maintenance cost. Cons: Maintenance needed, and shortest lifespan.

33. Results show that Concrete option and double surface dressing option have very similar costs with just one percent difference, being the latter smaller. However, the pros of the concrete alternative give more reassurance for the sustainability of the project, as it is a long lasting

alternative and require less maintenance along the years. Hence, this alternative from the economic point of view is recommended.

Table 16. Annual Total Cost per Km of Different Alternatives for Road Works

Cost per Km (US$) Concrete Asphalt Concrete Double surface dressing Equivalent cost per year 45,624 74,919 45,164

34. Sensitivity Analysis. The sensitivity analysis allows comparing the base case scenario to additional scenarios changing one variable at a time. The break-even analysis allows identifying the value of the chosen variables that causes the Project to exactly break even. The variables identified as the ones with the greatest effect on the sub-project’s outcome are: (i) investment and operating cost overrun; (ii) Project delays; and (iii) reduction on benefits.

35. Results show that for water and drainage, costs can two-fold and the subprojects would still show positive returns. Same when project is delayed up to five years. Regarding sanitation, if the investment cost is under the ceiling of US$2,000 per household the project would be viable even when the practice of washing hands is not fully adopted.

36. Risk Analysis. To enhance the accuracy of the financial and economic analysis, a risk analysis was carried out using Crystal Ball. This software works with Monte Carlo simulation sampling probability distribution for each of the variables selected and produced hundreds or thousands of possible outcomes. The results allow determining the probability of obtaining positive results with the Project. Results show that the probability of having positive results is higher than 90 percent.

76 19N 19N 78W 77W

JAMAICA Caribbean Sea

Barrett Town Montego Montego Bay Falmouth Runaway Bay Lucea Bay Granville Retirement St. Anns Bay G Steer Town re HANOVER a Anchovy t Dr y Ocho Rios Oracabessa Dolphin Head Montpelier Har Port Maria (545 m) bour Mts. SAINT TRELAWNY SAINT SAINT JAMES Annotto Bay Negril ANN Moneague MARY WESTMORELAND Russia Savanna Port Antonio La Mar SAINT Christiana Frankfield B Bluefield Linstead l u Bay ELIZABETH e PORTLAND Chapelton Bog Walk SAINT M ck o la u B SAINT ANDREW Mandeville CLARENDON n t CATHERINE Halfway Tree a i 78W Black River 3 4 Blue Mt. Peak n s 18N Treadlight Spanish Town 2 5 6 7 (2256 m) 18N P e 8 d May Pen 9 r o MANCHESTER 1 SAINT P l a Spanish Town Central KINGSTON

i n s M i

York Town n Old Harbour THOMAS

JAMAICA h Curatoe Hill o 1 Greenwich Town Port Morant INTEGRATED COMMUNITY 2 Majestic Gardens 3 Maxfield Park DEVELOPMENT PROJECT Lionel Portland Bight Town 4 Rose Town 5 PROJECT LOCATIONS Wilton Gardens/Rema 6 Denham Town Community Center CITIES AND TOWNS 7 Hannah Town PARISH CAPITALS 8 Denham Town 9 Tivoli Gardens NATIONAL CAPITAL Caribbean Sea RIVERS MAIN ROADS 0 5 10 15 20 25 Kilometers

FEBRUARY 2014 RAILROADS IBRD 40759 0 5 10 15 20 Miles PARISH BOUNDARIES INTERNATIONAL BOUNDARIES 77W