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Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 38444 - GN PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT IN THE AMOUNT OF SDR 11.5 MILLION (US$17.0 MILLION EQUIVALENT) Public Disclosure Authorized THE REPLTBLIC OF GUINEA FOR THE VILLAGE COMMUNITIES SUPPORT PROGRAM (PHASE I1 OF APL) IN SUPPORT OF A NATIONAL PROGRAM FOR DECENTRALIZED RURAL DEVELOPMENT Public Disclosure Authorized July 9,2007 Agriculture and Rural Development Sustainable Development Department Western Africa Country Cluster 1 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 June 4,2007) Currency Unit = GNF GNF3,451 = US$1 US$1.52493 = SDR 1 FISCAL YEAR January 1 - December 3 1 ABBREVIATIONS AND ACRONYMS FOR OFFICIAL USE ONLY 1 IFR I Interim Financial ReDorts IRR Internal Rate of Return ISN Interim Strategy Note LDP Local Development Plan LIF Local Investment Fund M&E Monitoring and Evaluation MATD Ministry of Territorial Administration and Decentralization (Minist2re de I I I'administration du territoire et de la de'centralisation) I MIS Management Information System MP Ministry ofPlanning NCB National Competitive Bidding NGO Non Governmental Organization NPDRD National Program for Decentralized Rural Development PACV Village Communities Support Program (Programme d'appui aux I I communaute's villaaeoises) I PCU Program Coordinating Unit PDO Project Development Objective PIM Proiect Imdementation Manual PRSP Poverty Reduction Strategy Paper PSC Project Steering Committee ~ RPF Resettlement Policy Framework RST Regional Support Team (Equipe rkgionale d'appui, ERA) SBD Standard BiddingY Document I SOE I Statement of ExDenditures SPD Prefectoral Development Service (Service pre'fectoral de de'veloppement) SPN Specific Procurement Notice UNCDF United Nations Capital Development Fund (Fonds d'e'quipement des Nations Unies. FENUl UNDB United Nations Development Business UNDP United Nations Development Programme Vice President: Obiageli K. Ezekwesili Country Director: Mats Karlsson Sector Manager: Karen Mcconnell Brooks Task Team Leader: I Jane C. Hopkins 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. .. 11 GUINEA Village Communities Support Program (Phase 11) CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 A . Country and sector issues .................................................................................................... 1 B. Rationale for Bank involvement ......................................................................................... 3 C . Higher level objectives to which the project contributes .................................................... 3 I1. PROJECT DESCRIPTION ............................................................................................. 4 A . Lending instrument ............................................................................................................. 4 B. Program objective and phases ............................................................................................. 4 C . Project development objective and key indicators .............................................................. 7 D. Project components ............................................................................................................. 8 E. Lessons learned and reflected in the project design .......................................................... 11 F. Alternatives considered and reasons for rejection ............................................................ 12 I11. IMPLEMENTATION .................................................................................................... 13 A . Partnership arrangements (if applicable) .......................................................................... 13 B. Institutional and implementation arrangements ................................................................ 14 C . Monitoring and evaluation of outcomes/results ................................................................ 15 ... D. Sustainability..................................................................................................................... 17 E. Critical risks and possible controversial aspects., ............................................................. 17 F. Loadcredit conditions and covenants ............................................................................... 19 IV. APPRAISAL SUMMARY ............................................................................................. 19 A . Economic and financial analyses ...................................................................................... 19 B. Technical ........................................................................................................................... 20 C . Fiduciary ........................................................................................................................... 21 D. Social................................................................................................................................. 21 E. Environment., .................................................................................................................... 22 F. Safeguard policies.. ........................................................................................................... 22 G. Policy Exceptions and Readiness ...................................................................................... 23 Annex 1: Country and Sector or Program Background......................................................... 24 ... 111 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 33 Annex 3: Results Framework and Monitoring ........................................................................ 34 Annex 4: Detailed Project Description...................................................................................... 38 Annex 5: Project Costs ............................................................................................................... 46 Annex 6: Implementation Arrangements ................................................................................. 47 Annex 7: Financial Management and Disbursement Arrangements ..................................... 54 Annex 8: Procurement Arrangements ...................................................................................... 65 Annex 9: Economic and Financial Analysis ............................................................................. 70 Annex 10: Safeguard Policy Issues ............................................................................................ 73 Annex 11: Project Preparation and Supervision ..................................................................... 75 Annex 12: Documents in the Project File ................................................................................. 77 Annex 13: Statement of Loans and Credits .............................................................................. 79 Annex 14: Country at a Glance ................................................................................................. 80 Annex 15: Map IBRD 35338 ..................................................................................................... 82 iv GUINEA GN-VILLAGE COMM SUPP PROGRAM - PHASE 2 PROJECT APPRAISAL DOCUMENT AFRICA AFTAR Date: July 9,2007 Team Leader: Jane C. Hopkins Country Director: Mats Karlsson Sectors: General agriculture, fishing and Sector Manager: Karen Mcconnell Brooks forestry sector (5O%);General water, sanitation and flood protection sector (25%);0ther social Project ID: PO65129 services (25%) Themes : Decentralization (P) ;Other rural Lending Instrument: Adaptable Program Loan development (S) Environmental screening category: Partial Assessment For Loans/Credits/Others: Total Bank financing (USsm.): 17.00 Global Environment Facility 9.00 1.oo 10.00 International Fund for Agriculture- 10.00 0.00 10.00 Development Local Govts. of Borrowing Country 5.50 0.00 5.50 Total: 48.20 7.80 56.00 Borrower: Republic of Guinea Responsible Agency: Ministry of Plan; PACV-CNC Conakry, Guinea Tel: (224) 46 40 23 Fax: (224) 46 40 31 [email protected] V Does the project depart from the CAS in content or other significant respects? No Ref: PAD I.C [ Does the project require any exceptions from Bank policies? Ref: PAD IV. G [ ]Yes [XINO Have these been approved by Bank management? [ ]Yes [ IN0 Is approval for any policy exception sought from the Board? [ ]Yes [XINO Does the project include any critical risks rated “substantial” or “high”? [XIYes [ ]No Re$ PAD III.E Does the project meet the Regional criteria for readiness for implementation? [XIYes [ ]No Ref: PAD IV.G Project development objective Ref: PAD II.C, TechnicalAnnex 3 Local rural governments (CRDs) are enabled to fulfill their legal mandate by planning and implementing inclusive local development activities, and improving revenue performance to sustain recurrent costs. Project description [one-sentence summary of each component] Ref: PAD ILD, Technical Annex 4 Component A: Local Investment Fund. The Local Investment Fund will be the
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