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434000Pad0p09617372b01off0 Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 43400-ET PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 27.4 MILLION (US$45 MILLION EQUIVALENT) TO THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA FOR A TANA & BELES INTEGRATED WATER RESOURCES DEVELOPMENT PROJECT May 2,2008 Public Disclosure Authorized Sustainable Development Department Water Resource Management Unit Africa Region This document has a restricted distribution and may be used by recipients only in the Public Disclosure Authorized performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective April 18,2008) Currency Unit = Ethiopian Birr (ETB) ETB9.58 = US$1 US$1.64 = SDR 1 FISCAL YEAR July7 - July6 ABBREVIATIONS AND ACRONYMS ADLI Agricultural Development Led Industrialization AFD French Development Agency AfDB African Development Bank APL Adaptable Program Lending ARARI Amhara Regional Agricultural Research Institute ARBA Abbay River Basin Authority ARB0 Abbay River Basin Organization ARBT Abbay River Basin Team BeSBO Beles Sub-Basin Organization BCM Billion Cubic Meter BOARD Bureau ofAgriculture and Rural Development BoFED Bureau ofFinance and Economic Development BoWRD Bureau ofWater Resources Development CAS Country Assistance Strategy CEM Country Economic Memorandum CFMG Community Flood Management Group CIDA Canadian International Development Agency CoSAERAR Commission for Sustainable Agriculture and Environmental Rehabilitation for Amhara Region CPA Cooperative Promotion Agency CQS Consultant Qualifications based Selection CWMS Country Water Resources Assistance Strategy DA Development Agent DPPA Disaster Prevention and Preparedness Agency DSS Decision Support System EIDP Ethiopia Irrigation and Drainage Project ENSAP Eastern Nile Subsidiary Action Program ENTRO Eastern Nile Technical Regional Organization EPA Environment Protection Authority EPLAUA Environment Protection Land Administration and Use Agency FA0 Food and Agriculture Organization FPEW Flood Preparedness and Early Warning Project FPEW-I Flood Preparedness and Early Warning Project - Phase I FPEW-I1 Flood Preparedness and Early Warning Project- Phase I1 FSCDPO Food Security Coordination and Disaster Prevention Office GEF Global Environmental Facility GIS Geographic Information Systems GoE Government ofEthiopia (Federal Democratic Republic ofEthiopia) GoF Government ofFinland GTZ German Technical Cooperation IA Implementing Agency ICB International Competitive Bidding .. 11 FOR OFFICIAL USE ONLY IDC International Demonstration Center IFAD International Fund for Agricultural Development IFR Interim Financial Report ILRI International Livestock Research Institute IPA Investment Promoting Agency IWMI International Water Management Institute IWRM Integrated Water Resources Management JICA Japanese International Cooperation Agency KFMG Kebele Flood Management Group KWC Kebele Watershed Committee KIDMO Koga Irrigation Development and Management Organization LCS Least Cost Selection MCM Million Cubic Meter MDG Millennium Development Goals MoARD Ministry ofAgriculture and Rural Development MoFED Ministry ofFinance and Economic Development MoWR Ministry ofWater Resources MW Mega Watt NBI Nile Basin Initiative NCB National Competitive Bidding NMA National Meteorological Agency NPCU National Project Coordination Unit NPSC National Project Steering Committee PASDEP Plan for Accelerated and Sustained Development to End Poverty PHRD Japan Policy and Human Resources Development PIM Project Implementation Manual PPF Project Preparation Facility PSD Private Sector Development QBS Quality Based Selection QCBS Quality and Cost Based Selection RBA River Basin Authority RBO River Basin Organization RIPA Regional Investment Promotion Agency RNE Royal Netherlands Embassy RPCU Regional Project Coordination Unit RRA Rural Roads Authority SBO Sub-Basin Organization SIDA Swedish International Development Agency SIL Specific Investment Loan ' SMS Subject Matter Specialist TA Technical Assistance TaSBO Tana Sub-Basin Organization TBIWRDP Tana & Beles Integrated Water Resources Development Project TBP Technical Background Paper TOR Terms of Reference USAID United States Agency for International Development WB World Bank WFMG Woreda Flood Management Group WRIS Water Resources Information System Vice President: Obiageli Katryn Ezekwesili Country Director: Kenichi Ohashi Sector Manager: Ashok Subramanian Task Team Leaders: E. V. JagannathadN. Harshadeep This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. ETHIOPIA Tana & Beles Integrated Water Resources Development Project CONTENTS Page A . STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 1. Country and sector issues.................................................................................................... 1 2 . Rationale for Bank involvement ......................................................................................... 6 3 . Higher Level Objectives to Which. the Project Contributes ................................................ 8 B. PROJECT DESCRIPTION ................................................................................................. 8 1. Lending instrument ............................................................................................................. 8 2 . Project development objective and key indicators .............................................................. 8 3 . Project components ............................................................................................................. 9 4 . Lessons learned and reflected in the project design .......................................................... 12 5 . Alternatives considered and reasons for rejection ............................................................ 13 C. IMPLEMENTATION ........................................................................................................ 14 1. Partnership arrangements .................................................................................................. 14 2 . Institutional and implementation arrangements ................................................................ 14 3 . Monitoring and Evaluation ofOutcomesResults ............................................................. 16 4 . Sustamablhty... ..................................................................................................................... 17 5 . Critical risks and possible controversial aspects ............................................................... 18 6 . Loadcredit Conditions and Covenants ............................................................................ 19 D. APPRAISAL SUMMARY ................................................................................................. 20 1. Economic and Financial Analyses .................................................................................... 20 2 . Technical ........................................................................................................................... 23 3 . Fiduciary ........................................................................................................................... 24 4 . Social................................................................................................................................. 26 5 . Environment...................................................................................................................... 27 6 . Safeguard policies ............................................................................................................. 28 7 . Policy Exceptions and Readiness...................................................................................... 30 iv Annex 1: Country and Sector or Program Background ......................................................... 33 1. Country and Sector Issues: ................................................................................................ 33 2 . Characteristics of Key Spatial Regions ............................................................................. 36 Annex 2: Major Related Projects Financed by the Bank and / or Other Agencies .............. 46 Annex 3: Results Framework and Monitoring ........................................................................ 48 Annex 4: Detailed Project Description...................................................................................... 54 Annex 5: Project Costs ............................................................................................................... 68 Annex 6: ImplementationArrangements ................................................................................. 69 Annex 7: Financial Management and Disbursement Arrangements ..................................... 79 Annex 8: Procurement Arrangements ...................................................................................... 91 Annex 9: Economic and Financial Analysis ............................................................................. 99 Annex 10: Safeguard Policy Issues .......................................................................................... 112 Annex 11: Project Preparation and Supervision ..................................................................
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