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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 58890-EG PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF US$200 MILLION TO THE ARAB REPUBLIC OF EGYPT FOR THE SECOND INTEGRATED SANITATION AND SEWERAGE INFRASTRUCTURE PROJECT Public Disclosure Authorized June 6, 2011 Sustainable Development Department Middle East and North Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective April 13, 2011) Currency Unit = Egyptian Pound LE1 = US$0.173 US$1 = LE 5.96 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ARP Abbreviated Resettlement Plan ASBR Advanced Sequential Batch Reactors BD Bidding Document BOD Biological Oxygen Demand DA Designated Account DO Dissolved Oxygen EC European Commission EEAA Egyptian Environmental Affairs Agency ERR Economic Rate of Return ESAF Environmental and Social Assessment Framework ESMMF Environmental & Social Management & Monitoring Framework ESW Economic Sector Work EU European Union EWRA Egyptian Water Regulatory Agency FC Fecal Coli form FM Financial Management FMS Financial Management Specialist FY Fiscal Year GDP Gross Domestic Product GOE Government of Egypt GIZ German Society for International Cooperation HCWW Holding Company for Water and Wastewater IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding IDA International Development Association IFR Interim Financial Report ISSIP Integrated Sanitation and Sewerage Infrastructure Project IWSP Improved Water and Sanitation Program JSDF Japan Social Development Fund LAU Local Administrative Unit LE Egyptian Pound M&E Monitoring and Evaluation MOHP Ministry of Health and Population MOHUUD Ministry of Housing, Utilities and Urban Development MOPIC Ministry of Planning and International Cooperation MWRI Ministry of Water Resources and Irrigation NCB National Competitive Bidding NOPWASD National Organization for Potable Water and Sanitary Drainage O&M Operation and Maintenance OP Operational Policy PAD Project Appraisal Document PAP Project Affected Persons PFS Project Financial Statement PIC Public Information Center PID Project Information Document PIM Project Implementation Manual PIU Project Implementation Unit PMCF Program Management Consulting Firm PMU Project Management Unit PS Pumping Station QA Quality Assurance RBC Rotating Biological Contractor RAP Resettlement Action Plan RPF Resettlement Policy Framework RSU Rural Sanitation Unit SA Social Assessment / Special Account SBD Standard Bidding Documents SIL Specific Investment Loan TA Technical Assistance TOR Terms of Reference TSS Total Suspended Solids TTL Task Team Leader UASB Up flow Anaerobic Sludge Blanket UNICEF The United Nations Children‟s Fund WQ Water Quality WSC Water and Sanitation Company WUA Water Users‟ Association WWTP Wastewater treatment plant Vice President: Shamshad Akhtar Country Director: A. David Craig Sector Director Laszlo Lovei Sector Manager: Francis Ato Brown Task Team Leader: Parameswaran Iyer Table of Contents I. Strategic Context .................................................................................................................... 1 II. Project Development Objectives............................................................................................ 4 III. Project Description................................................................................................................. 4 IV. Implementation ...................................................................................................................... 6 V. Key Risks ............................................................................................................................... 8 Annex I: Results Framework and Monitoring .............................................................................. 15 Annex II: Detailed Project Description......................................................................................... 18 Annex III: Implementation Arrangements .................................................................................... 22 Annex IV: Operational Risk Assessment Framework (ORAF) .................................................... 30 Annex V: Implementation Support Plan ...................................................................................... 34 Annex VI: Team Composition ...................................................................................................... 36 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. PAD DATA SHEET ARAB REPUBLIC OF EGYPT THE SECOND INTEGRATED SANITATION AND SEWERAGE INFRASTRUCTURE PROJECT PROJECT APPRAISAL DOCUMENT MIDDLE EAST AND NORTH AFRICA Sustainable Development Department Date: June 6, 2011 Sectors: Sanitation (20%); Sewerage (80%) Country Director: A. David Craig Themes: Rural Services and Infrastructure (P) Sector Director: Laszlo Lovei Environmental Assessment Sector Manager: Ato Brown Screening Category: B Team Leader: Parameswaran Iyer Project ID: P120161 Lending Instrument: SIL Project Financing Data: Proposed terms: [X] Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other: Source Total Amount (US$M) Total Project Cost: 310 Cofinancing: 110 Total Bank Financing: IBRD 200 IDA New Recommitted Others Borrower: Arab Republic of Egypt Implementing Agency: Ministry of Housing, Utilities and Urban Development, 12 Ismail Abaza Street, Cairo, Arab Republic of Egypt Responsible Sub-Agencies: 1. National Organization for Potable Water and Sanitary Drainage (NOPWASD) Arab Republic of Egypt. Contact Person: Eng. Samia M. Saleh Badr El Din Telephone No.: +202-33042922 2. Holding Company for Water and Waste Water (HCWW) Arab Republic of Egypt. Contact Person: Eng. Mamdouh Raslan Telephone No.: +202-24583591 Estimated Disbursements (Bank FY/US$ m) FY 2012 2013 2014 2015 2016 2017 Annual 0 25 40 60 60 15 Cumulative 0 25 65 125 185 200 Project Implementation Period: Start: January 2012 End: December 2016 Expected effectiveness date: January 1, 2012 Expected closing date: December 31, 2016 Does the project depart from the CAS in content or other significant ○ Yes No respects? If yes, please explain: Does the project require any exceptions from Bank policies? ○ Yes No Have these been approved by Bank management? ○ Yes ○ No Is approval for any policy exception sought from the Board? ○ Yes No If yes, please explain: Does the project meet the Regional criteria for readiness for Yes ○ No implementation? Project Development Objective: The Project Development Objective is to provide targeted populations in the Governorates of Menoufia, Sharkeya, Assiut and Sohag with increased access to improved sanitation and sewerage services. Project description The Project consists of the following parts: Component 1: Construction of wastewater infrastructure systems in selected village clusters in the Governorates of Menoufia and Sharkeya, including wastewater treatment plants, collection networks, customer connections, and decentralized treatment systems. Component 2: Construction of wastewater infrastructure systems in selected village clusters in the Governorates of Assiut and Sohag, including wastewater treatment plants, collection networks, customer connections, and decentralized treatment systems. Component 3: Support HCWW and NOPWASD in project implementation, monitoring and evaluation and management, including construction supervision and environmental management services. Safeguard policies triggered? Environmental Assessment (OP/BP 4.01) Yes ○ No Natural Habitats (OP/BP 4.04) ○ Yes No Forests (OP/BP 4.36) ○ Yes No Pest Management (OP 4.09) ○ Yes No ii Physical Cultural Resources (OP/BP 4.11) ○ Yes No Indigenous Peoples (OP/BP 4.10) ○ Yes No Involuntary Resettlement (OP/BP 4.12) Yes ○ No Safety of Dams (OP/BP 4.37) ○ Yes No Projects on International Waters (OP/BP 7.50) ○ Yes No Projects in Disputed Areas (OP/BP 7.60) ○ Yes No Conditions and Legal Covenants: Loan Agreement Description of Covenant When Due Reference 1. Schedule 2 Section An interagency agreement has been executed between the 45 days after I A. 4 National Organization for Potable Water and Sanitary effectiveness Drainage (NOPWASD) and the Holding Company for Water and Wastewater (HCWW) in form and substance acceptable to the Bank. 2. Schedule 2 Section The Borrower has adopted the updated Project 45 days after I A. 4 Implementation Manual (PIM), in form and substance effectiveness acceptable to the Bank. 3. Section IV. B 1 No withdrawal shall be made (a) for payments prior to the Disbursement date of the Loan Agreement; or (b) for works under the condition project until the Borrower has acquired and installed accounting software for the Project, acceptable to the Bank. 4. Schedule 2, Section The Borrower shall: Implementation I B 1 (a) prepare and disclose, prior to the commencement of any construction works requiring land acquisition under the Project, a Resettlement Action Plan, acceptable to the Bank, in accordance with the RPF; (b) Implement the Resettlement Action Plan, including, unless otherwise agreed with the Bank, payment in full of compensation to all affected people prior to commencing
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