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World Bank Document Document of The World Bank Public Disclosure Authorized Report No. T7632-DJI TECHNICAL ANNEX FOR A Public Disclosure Authorized PROPOSED CREDIT OF SDR 2.2 MILLION (US$3.23 MILLION EQUIVALENT) AND A PROPOSED GRANT OF SDR 2.2 MILLION (US$3.23 MILLION EQUIVALENT) TO THE Public Disclosure Authorized REPUBLIC OF DJIBOUTI FOR A FLOOD EMERGENCY REHABILITATION PROJECT July 20, 2004 Public Disclosure Authorized CURRENCY EQUIVALENTS Exchange Rate Effective: July 15,2004 Currency Unit = FDj (Franc Djiboutien) FDj 1 = US$0.005714 US$l.OO = FDj 175.00 WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS ADETIP Agence Djiboutienne d’Extcution des Travaux d’Interet Public (Djiboutian Agency for Implementation ofPublics Works) AfD Agence FranGaise de Dtveloppement (French Development Agency) AfDB African Development Bank (African Development Agency) CBO Community-Based Organizations CDD Community Driven Development CDQ Comitt de Dtveloppement de Quartier (Neighborhood Development Committee) CQ Consultants’ Qualifications DAI Direction de I’Assainissement et des Infrastructures, MoH(Sanitation and Infrastructure Directorate) DE Direction de I’Equipement, MoTE (also known as TP) (Equipment Directorate) EA Environmental Assessment EDD Electricitt de Djibouti (Djibouti Power) EMP Environmental Management Plan FEW Flood Emergency Rehabilitation Project FMRs Financial Monitoring Reports GDP Gross Domestic Product ICB International Competitive Bidding IDA International Development Association MDGs Millennium Development Goals MOA Ministere de l’Agriculture, de 1’Elevage et de la Mer (Ministry ofAgriculture, Livestock and Sea, in charge ofwater resources) MoC Ministbre des Communications (Ministry ofCommunications) MoE Ministbre de I’Education (Ministry ofEducation) MoF Ministbre des Finances (Ministry ofFinance) MoH Ministbre de l’Habitat, de l’urbanisme, de 1’Environnement et de 1’Amtnagement du Territoire (Ministry of Housing, Urbanism, Environment and Territorial Planning) MoI Ministbre de 1’IntCrieur et de la Dtcentralisation (Ministry ofInterior and Decentralization) MoTE Ministbre du Transport et de 1’Equipement (Ministry of Transport and Equipment) NCB National Competitive Bidding ONED Office National des Eaux de Djibouti (National Bureau ofDjibouti Waters) PDSTIP Projet de Dtveloppement Social et de Travaux d’Inttr&t Public (Social Development and Public Works) RAP Resettlement Action Plan SA Special Account sc Steering Committee SOEs Statement ofExpenditures SDR Special Drawing Rights UNDP United Nations Development Program FISCAL YEAR January 1 - December 3 1 Regional Vice President Christiaan J. Poortman Country Director Mahmood A. Ayub Sector Director/Sector Manager Emmanuel ForestieriHedi Larbi Task Team LeaderiTask Manager Anthony G. Bigio DJIBOUTI FLOOD EMERGENCY REHABILITATION PROJECT Table of Contents I. Country Background And Strategy .................................................................................... 1 Country Background and Flood History ..................................................................................... 1 The Flood Damage Assessment ofApril 2004 ............................................................................ 2 Govemment’s Response to the Emergency................................................................................. 2 I1. IDA’S Response to the Flood Emergency ........................................................................... 4 Elements of IDA’S Response ....................................................................................................... 4 Economic Impact ......................................................................................................................... 7 Lessons Learned .......................................................................................................................... 8 I11. Detailed Project Description ............................................................................................ 8 Project Objectives........................................................................................................................ 8 Project Description ...................................................................................................................... 9 Project Cost and Financing........................................................................................................ 10 IV. Institutional Arrangements And Project Implementation.......................................... 10 Project Implementation ............................................................................................................. 10 Financial Management. Disbursement and Reporting Arrangements ....................................... 11 Procurement Arrangements ....................................................................................................... 13 Assessment of ADETIP’s capacity to implement procurement ................................................ 14 Procurement Plan ...................................................................................................................... 16 Project Sustainability................................................................................................................. 19 Environment and Social Aspects ............................................................................................... 20 Participatory Approach.............................................................................................................. 21 Considerations to Vulnerable Groups ....................................................................................... 21 V . Project Benefits and Risks.................................................................................................. 22 Project Benefits ......................................................................................................................... 22 Project Risks .............................................................................................................................. 23 Agreed Actions .......................................................................................................................... 25 Attachment 1- Detailed Scope of Work for Component 1...................................................... 26 Attachment 2 - Detailed Scope of Work for Component 2 ...................................................... 32 Attachment 3 - Detailed Scope of Work for Component 3 ..................................................... 33 Attachment 4 - Detailed Scope of Work for Component 4 ..................................................... 34 Attachment 5 - Estimated Costs and Financing Plan .............................................................. 35 Attachment 6 - Financing Plan .................................................................................................. 36 Attachment 7 - Procurement ...................................................................................................... 37 Attachment 8 - Disbursement Arrangements ........................................................................... 38 Attachment 9 - Key Implementation and Monitoring Indicators........................................... 39 Attachment 10 - TOR for Rapid Socio-Economic Study of Living Conditions of the Displaced Familiese. and in PK12 ................................................................................................. 40 Attachment 11 - List of donor-financed Socio-economic and Infrastructural Interventions in PK12 ......................................................................................................................................... 41 Attachment 12 - FEW Steering Committee / Comite de Pilotage .......................................... 43 i DJIBOUTI TECHNICAL ANNEX FOR A PROPOSED CREDIT FOR A FLOOD EMERGENCY REHABILITATION PROJECT I. COUNTRYBACKGROUND AND STRATEGY Country Background and Flood History 1. Djibouti is a small country. Its population is estimated at 500,000, two thirds ofwhich lives in the capital, Djibouti City. It ispoorly endowed in natural resources (limited arable land, rainfall and underground water.) It benefits, however, mainly from its strategic location on the Red Sea’s southern entrance for military and regional international shipping purposes. Djibouti’s main revenues come from the activities of its port and related transport and logistics business as well as from the rental of military bases to France since independence in 1977, and most recently to the US and from the services associated with these bases. This is reflected in the large share of the service sector in the economy which accounts for 70 percent of GDP. 2. Djibouti’s social indicators are amongst the lowest in the world. Recent data from EDAM- IS shows that poverty in Djibouti is both extremely high and increasing. In 2002, about three fourth (74 percent) of the population lived under relative poverty line and 42 percent under extreme poverty, compared to 45 percent and 10 percent, respectively, in 1996. While the surveys show that the most dramatic poverty incidence is in rural areas as 83% of the rural population live in extreme poverty, Djibouti City shelters the largest number ofpoor people and contributes by itself to 65% and 57% to relative and extreme poverty, respectively. The study finds that the incidence ofrelative and extreme poverty is the strongest among households whose heads are unemployed. Unemployment which is estimated at 52%, contributes to about 65% to
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