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Documentof The World Bank FOR OFFICIALUSE ONLY Public Disclosure Authorized ReportNo. 6561 Public Disclosure Authorized PROJECT PERFORMANCE AUDIT REPORT EGYPT FIRST URBAN DEVELOPMENT PROJECT (CREDIT 831-EGT) Decenmner 19, 1986 Public Disclosure Authorized Public Disclosure Authorized Operations Evaluation Department 1his document has a restricted distribution and ma! be used bN recipients onb, in the performance (of their official duties. Its contents mnai not otherwise be disclosed without N'orld Bank authoriiation. lOB OUomiALUS ONLY THEWOSLO SANK Wah.sngon,DC 204)3 OUmcenEOvDvtwCoawe OpwramwnI'ANIwIw December19, 1986 MEMORANDUMTO THE EXECUTIVEDIRECTORS AND THE PRESIDENT SUBJECT: ProjectPerformance Audit Report on Egypt First Urban Development Project (Credit 831-EGT) Attached,for information,is a copy of a report entitled"Project PerformanceAudit Report on Egypt First Urban DevelopmentProject (Credit 831-EGT)"prepared by the OperationsEvaluation Department. , , f~~~~~~~~~~~~~~~~~~~f Attachment This documenthas a restricteddistribution and may be usedby recipientsonly in the performance of their official duties.Its contenu may not otherwisebe disclosedwithout World Bank authoriztion. ABBREVIATIONSAND ACRONYMS CAPMS CentralAgency for PublicMobilization and Statistics CEDC Cairo ElectricityDistribution Company CFE CreditFoncier Egyptien CPWO Cairo PotableWater Oi'ganization(later, itneral Organization for GreaterCairo Water (GOCCW) ESA EgyptianSurvey Authority GOGCSSD General Organization for Greater Cairo Sewerage and Sanitary Drainage GOE Governmentof Egypt GOPP GeneralOrganization for PhysicalPlanning GOPW General Organization for Potable Water GOSSD GeneralOrganization for Sewerageand SanitaryDrainage HIPCO HandicraftIndustries and ProductiveCooperative Organization ip!i InternationalDevelopment Association JHP ExecutiveAgency for Joint Projects LIHF Low-Income Housing Fund LIHDU Low-Income Housing Development Unit LIHPO Low-Income Housing Project Officer MOHR Ministry of Housing and Reconstruction NBE National Bank of Egypt NGO %n-Governmental Organization ODA Overseas Development Agency PCR Project Completion Report PPF ProjectPreparation Facility SLG Secretariatfor Local Government TOR Terms of Reference USAID United StatesAgency for InternationalDevelopment COUNTRY EXCHANGE RATES Name of Currency (Abbreviation) Egyptian Pound (LE) Year Exchange Rate /a Appraisal Year (1978) US$1 - LE 1.43 Intervening years (1979) US$1 * LE 1.43 (1980) US$1 a LE 1.35 (1981) US$1 - LE 1.35 (1982) US$1 - LE 1.23 (1983) US$1 - LE 1.16 (1984) US$! - LE 1.07 Completion year (1985) US$1 - LE 0.98 /a Calendar year averages. M OFFmALUus ONLY PROJECT PERFORMANCEAUDIT REPORT EGYPT FIRST URBANDEVELOPMENT PRCJECT (CREDIT 831-EGT) TABLE OF?CONTENTS Page No. Preface ........ ii.........................****** Basic Data Sheet ii Evaluation Summary .................., . *... v PROJECT PERFORMANCE AUDIT MEMORANDUM I. BACKGROUND ... ............. 1.....I A. The Economic Context 1 B. Urban Development a..............050 00 4 C. Institutionaland Policy Context ... 6 D. The Project 8.*...8 II. IMPLEMENTATION. ............. 10 A* General 10 B. Design and Implementationof Shelter Components 12 C. Design and Implementationof the Solid Waste Component...... , 15 D. Design and Implementationof the Employment COomponent .... >,........16 E. Design and Implementat'onof the Rehabilitation of Water Supply and 3ewerage System in Assiut 17 F. Design and Implementationof the Technical Assistance Component 18 III. PROJECT PERFORMANCE ANr,RESULTS ..................... 18 AcGeneral 18 B. Achievements in the Area of ShelterW18 C. Achievements in the Area of Solid Waste Management .... 20 ,,,,,...,,........ D. Achievements Associated with Technical Aosistance .. .... ..... * .** o e**** 20 E. Areas of Lesser Achievements 21 IV. POINTS OF SPECIAL INTEREST........................... 22 A. The Impact of Procurement Choices on Construction Efficiency 22 This document has a restricted distribution and may be used by recipients only in the performance of their officialduties. Its contents may not otherwise be disclosed without World Bank authorizatior.. TABLE OF CONTENTS(Cont.) B. The Determination of Construction Standards *..... 24 C. Housing Supply under Rent Control ................ 25 ANNEXES A. Project Descriptionand PrincipalChanges in Project Description ................. ......... 27 B. USAID ProjectAssistance for Urban Infrastructure and Shelter in Egypt (1977-1985) ................... 31 PROJECTCOMPLETION REPORT I. Introduction . ....... * 33 IT. ProjectIdentification, Preparation and Appraisal... 34 III. The Project.. ........ ..... ...... ... .. ....... 35 IV. Implementation ......... 36 . ..... V. Institutional Performance and Development ........... 45 VI. Financial Performance ......o. o. .*0o .. oo..oo.... 49 VII. Economic Reanalysis ..........................o.o.... 51 VIII. Role of the Bank and Other DonGrs ................... 51 Ix. Conclusions o.o e o o * o o o o o 00 0 .0.....0......0.... ,,.....0... 52 TABLES 1. Summary Costs/Appraisal and Revised Estimates .. oooo 55 2. Disbursementsof IBRD Loans and IDA Credits (S1974-1983) o.o. ........... o. .o..ooo.oo, ..o. ....56 3. Revised Allocation of Credit Funds ..... 57 4. Anticipated,Actual, and ProjectedRates of Inflationduring the ProjectImplementation Period o o.oo .o... o . ss.. o....o..ooooo...o 58 ANNEXES I. ProjectComponents as Appraisedand as Implemented.. 59 II. DetailedCosts: Appraisaland RevisedEstimates, Sites and Services and Upgrading .................. 65 III. Zabbaleen Settlement - Economic Reevaluation ..... o.. 74 IV. Implementationof Project Components ........ 0. ... 75 V. CompletionReport Prepared by JHP ................... 76 TABLE01 CONTENTS(0Q'nt.) MAPS IBRD 13443 (PCR) IBRD 13441 (PCE) IBRD 13439 (PCR) IBRD 19067 (PCR) I'RD 190613 (PCR) IBRD 19069 (PCR) - i - PROJECTPERFORMANCE AUDIT REPORT EGYPT- FIRST URBANDEVELOPMENT PROJECT (CREDIT831--EGT) PREFACE This ProjectPerformance Audit Report(PPAR) constitutes a perform- ance audit of the Egypt First Urban DevelopmentProject for which Credit 831-EGT for US$14.0 million equivalentwas made in August 1978 and final disbursementswere made on June 28, 1985. The PPAR consistsof a ProjectPerformance Audit Memorandum(PPAM) preparedby the OperationsEvaluation Department (OED) and a ProjectComple- tion Report (PCR) dated June 28, 1985, preparedby the Europe,Middle East, and North Africa RegionalOffice. The PPAM is based on the PCR, Appraisaland President'sReports, discussionswith Bank staff directlyinvolved with projectsand programsin Egypt,and a reviewof projectfiles and recordsof the InternationalDevl1- opment Association(IDA). The transcriptof the ExecutiveDirector's meeting when the projectwas considered,indicated that the Creditwas approvedwith- out discussion. The audit concurswith the PCR in severalaspects. However,on the basis of furtheranalysis made of the availabledata, the audit has drawn some additionalconclusions providing a differentperspective concerning the performanceof the project. The audit was sent to the Borrowerfor comments;however, none were received. -. Ii - PROJECTPERFORMANCE AUDIT REPORT EGYPTFIRST URBANDEVELOPMENT PROJECT (CEDIT 831-EGT) BASIC DATASHEET Key Project Data Original Actual/ Item Plan RAtimate Total ProjectCost (US$ million) 21.0 22.4 Cost Overrun(%) 6.7 CreditAmount (US$ million) 14.0 14.0 Disbursed 13.4 Cancelled 0.b Repaid - Outstanding 13.4 Date PhysicalComponents Completed 12/31/82 12/31/84 ProportionCoupleted by Above Date (2) /a 10.0 60.0 Proportionof Time Overrun(X) 45.0 FinancialPerformance /b Less thaa Sacisfactory InstitutionalPerformance /c Less than Satisfactory EconomicRate of Return(X2F/d 19.0 23.0 /a Completionmeasured in relationto originalproject description. 7b Pricingand cost recoverymeasures established for the projectwere not yet implementedat completiondate. /c The local governmentadministrative system underwent a numberof reformsduring the early years of projectimplementation. These plus centralgovernment institutionalchanges adversely affected the executionof the project. /d The orig4nal estimationof the IERR was made only for the upgradingand the sites and servicescomponents; the reestimationof that rate is for the upgradingcomponent only. STAFF INpUT Staff-Weeks 1977 1977 1978 1979 1980 1981 1982 1983 1984 1985 Total Identification/ Preparation 25.9 45.3 58.2 129.4 Appraisal/ Negotiations 79.6 79.6 Supervision/Other .1 79.7 50.6 63.0 29.6 30.1 28.0 31.9 313.2 Total 25.9 45.3 138.0 79.7 50.6 63.0 29.6 30.1 28.0 31.9 522.2 CumulativeEstimated and ActualDisbursements (US$ million) FY79 FY80 FY81 FY82 FY83 FY84 FY85 (i) Estimated 0.9 6.1 12.1 14.0 (ii) Actual 1.9 3.9 8.8 13.4 X of (ii) to (l) 13.6 27.9 62.9 95.7 Other Project Data Original Item Plan Actual First Mentioned in Files - 02/76 Government's Application - 01/05/77 Negotiations Completed - 05/21/78 Board Approval 05/30/78 06/23/78 Credit Agreement - 08/30/78 Effecliveness 12/28/78 05/01/79 Closing Date 12/31/82 12/31/84 Borrower Arab Republic of Egypt Executlng Agencies LIRDU, LIXI' JHP, CFE Governorate of: Governorate of: Cairo Cairo Alexandria Alexandria Assiut Assiut NBE NBE Secretariat for Secretariat for Local Government Local Government HIPCO CEDC HIPCO GOPW CPWO GOPW GOSSD ESA GOSSD GOCGSSD Fiscal Year of Borrower Jan. 1-Dec. 31 Follow-oiiProject: Loan (i) Greater Cairo Urban Development Project Loan Number (i) 2176-ECT Loan Amount (US$ million) (i) 59.0 Loan Agreement (i) 10/26/82 Name (ii) Egypt: Solid Waste Management
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