World Bank Document

FOR OFFICIAL USE ONLY Report No: PAD3362 Public Disclosure Authorized INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT Public Disclosure Authorized IN THE AMOUNT OF SDR 48 MILLION (US$66 MILLION EQUIVALENT) (OF WHICH US$20 MILLION IS FROM THE IDA18 REGIONAL SUB-WINDOW FOR REFUGEES AND HOST COMMUNITIES) TO THE ISLAMIC REPUBLIC OF MAURITANIA Public Disclosure Authorized FOR A DECENTRALIZATION AND PRODUCTIVE INTERMEDIATE CITIES SUPPORT PROJECT MARCH 9, 2020 Urban, Disaster Risk Management, Resilience, and Land Global Practice Africa 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 31, 2020) Currency Unit = Mauritanian Ouguiya (MRO) MRO 37.50 = US$1 US$1 = SDR 0.726 FISCAL YEAR January 1 - December 31 Regional Vice President: Hafez M. H. Ghanem Country Director: Nathan M. Belete Country Manager: Laurent Msellati Regional Director: Simeon Kacou Ehui Practice Manager: Sylvie Debomy Farouk Mollah Banna, Abel Bove, Alexandra Le Courtois, Task Team Leaders: Manuel Luengo ABBREVIATIONS AND ACRONYMS AFD French Development Agency (Agence Française de Développement) AfDB African Development Bank ADER Agency for the Development of Rural Electrification APAUS Agency for the Promotion of Universal Access to Services (Agence pour la promotion de l’accès universel aux service) ARM Multisectoral Regulatory Authority (Autorité de régulation multisectorielle) CAPPP Public-Private Partnership Support Cell CAPEX Capital Expenditure CDP Communal Development Plan CERC Contingency Emergency Response Component CPF Country Partnership Framework DA Designated Account DECLIC Local Development Support in Mauritania (Programme d’appui de l’AFD au Développement économique local et aux Initiatives communales en Mauritanie) DEME Directorate of Electricity and Energy Management (Direction de l’électricité et de la maîtrise de l’énergie) DEP Project Execution Department DFIL Disbursement and Financial Information Letter DGCT General Directorate for Local Governments (Direction Générale des Collectivités Territoriales) DSPE Delegate for Electricity Public Service (Délégataire du service public d’électricité) EIRR Economic Internal Rate of Return ENABEL Belgian Development Agency ESIA Environmental and Social Impact Assessment ESS Environmental and Social Standard ESCP Environmental and Social Commitment Plan ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan EU European Union FAUS Fund for Universal Access to Services FIRR Financial Internal Rate of Return FM Financial Management FRD Regional Development Fund (Fond regional de développement) GBV Gender-based Violence GDP Gross Domestic Product GHG Greenhouse Gas GIZ German Agency for International Cooperation (Deutsche Gesellschaft für Internationale Zusammenarbeit) GoM Government of Mauritania GRM Grievance Redress Mechanism GRS Grievance Redress Service HR Human Resource HRM Human Resource Management ICT Information and Communication Technology IFMIS Integrated Financial Management Information System IFR Interim Financial Report LG Local Government LGDP Local Government Development Project LMP Labor Management Procedure M&E Monitoring and Evaluation MGM Municipal Grant Manual MoF Ministry of Finance MPEM Ministry of Petroleum, Energy, and Mines NPV Net Present Value OMVS Senegal River Basin Development Organization OPEX Operating Expenditure PCU Project Coordination Unit PDO Project Development Objective PDU Urban Development Project (Projet de développment urbain) PFM Public Finance Management PIU Project Implementation Unit PNIDDLE National Integrated Program for Decentralization, Local Development and Employment (Programme National Intégré pour la Décentralisation le Développement Local et l'Emploi des jeunes) POM Project Operation Manual PPSD Project Procurement Strategy for Development PPP Public-Private Partnership PSC Project Steering Committee PV Photovoltaic RIMDIR Program for Strengthening Productive and Energy Investments in Mauritania for the Sustainable Development of Rural Areas (Programme de Renforcement des investissements productifs et énergétiques en Mauritanie pour le développement durable des zones rurales) RSW Refugee and Host Community Sub-window SCAPP Strategy for Accelerated Growth and Shared Prosperity (Stratégie de Croissance Accélérée et de Prospérité Partagée) SEP Stakeholder Engagement Plan SOMELEC National Mauritanian Electricity Company (Service public d’électricité mauritanien) TA Technical Assistance ToR Terms of Reference UDP Urban Development Program UNDP United Nations Development Programme UNHCR United Nations High Commissioner for Refugees WFP World Food Programme TABLE OF CONTENTS DATASHEET ........................................................................................................................... 1 I. STRATEGIC CONTEXT ...................................................................................................... 7 A. Country Context................................................................................................................................ 7 B. Sectoral and Institutional Context .................................................................................................... 9 C. Relevance to Higher Level Objectives ............................................................................................. 12 II. PROJECT DESCRIPTION .................................................................................................. 13 A. Project Development Objective ..................................................................................................... 13 B. Project Components ....................................................................................................................... 14 C. Project Beneficiaries ....................................................................................................................... 20 D. Results Chain .................................................................................................................................. 21 E. Rationale for Bank Involvement and Role of Partners ................................................................... 21 F. Lessons Learned and Reflected in the Project Design .................................................................... 22 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 23 A. Institutional and Implementation Arrangements .......................................................................... 23 B. Results Monitoring and Evaluation Arrangements......................................................................... 24 C. Sustainability ................................................................................................................................... 25 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 26 A. Technical, Economic and Financial Analysis ................................................................................... 26 B. Fiduciary .......................................................................................................................................... 28 C. Legal Operational Policies ............................................................................................................... 29 D. Environmental and Social ............................................................................................................... 29 V. GRIEVANCE REDRESS SERVICES ..................................................................................... 30 VI. KEY RISKS ..................................................................................................................... 30 VII. RESULTS FRAMEWORK AND MONITORING ................................................................... 33 ANNEX 1: Implementation Arrangements and Support Plan .......................................... 43 Annex 2: Spatial Approach to the Country Partnership Framework ................................ 48 ANNEX 3: Overview of the refugee situation in Mauritania............................................ 51 ANNEX 4: Description of the Rural Electrification Subcomponent .................................. 55 ANNEX 5: State of Decentralization in Mauritania ......................................................... 61 ANNEX 6: Summary of Support from Technical and Financial Partners to the Decentralization Process and Municipalities .................................................................. 65 ANNEX 7: Financial Management and Disbursement Arrangements .............................. 68 ANNEX 8: Gender Analysis, Actions, and Indicators ....................................................... 71 ANNEX 9: Applicability of Environmental and Social Standards ...................................... 73 ANNEX 10: Map ............................................................................................................ 76 DATASHEET BASIC INFORMATION BASIC INFO TABLE Country(ies) Project Name Mauritania Decentralization and Productive Intermediate Cities Support Project Project ID Financing Instrument Environmental and Social Risk Classification Investment Project P169332 Substantial Financing Financing & Implementation

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