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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 47906-BA PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED LOAN IN THE AMOUNT OF EURO 23.6 MILLION (US35 MILLION EQUIVALENT) TO BOSNIA AND HERZEGOVINA FOR A Public Disclosure Authorized SARAJEVO WASTE WATER PROJECT November 24,2009 Sustainable Development Department South East Europe Country Unit Europe and Central Asia 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 11/18/2009) Currency Unit = BAM (Bosnian Mark) BAM 1.32 = US$l US$1.59 = SDR US$1.48 = EUR FISCAL YEAR January 1 - December31 ABBREVIATIONS AND ACRONYMS BH Bosnia and Herzegovina BOD5 Five-day Biochemical Oxygen Demand CAS Country Assistance Strategy CFAA Country Financial and Audit Assessment CPS Country Partnership Strategy CQ Consultant's Qualification DPA Dayton Peace Agreement EBRD European Bank for Reconstruction and Development EC European Commission ECA Europe and Central Asia EIA Environmental Impact Assessment EMP Environmental Management Plan EU European Union FBH Federation of Bosnia and Herzegovina FIRR Financial Internal Rate of Return FM Financial Management FMS Financial Management System GAP Governance Accountability Project GDP Gross Domestic Product GEF Global Environment Facility IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding IDA International Development Association IFAC International Federation of Accounting IPA Instrument for Pre-Accession Assistance IS International Shopping JICA Japan International Cooperation Agency LCS Least-Cost Selection LDP Local Development Pilot Project MIS Management Information Systems MoFT Ministry of Finance and Treasury MoFTER Ministry of Foreign Trade and Economic Relations FOR OFFICIAL USE ONLY MTR Mid-Term Review NCB National Competitive Bidding NPV Net Present Value NS National Shopping NGO Non-Governmental Organization O&M Operations and maintenance OSCE Organization for Security and Co-operation in Europe PAD Project Appraisal Document PHRD Policy and Human Resources Development Fund PIT Project Implementing Team PMT Project Management Team POM Project Operational Manual PP Procurement Plan PPL Public Procurement Law QCBS Quality and Cost Based Selection RS Republika Srpska SIDA Swedish International Development Agency SIL Specific Investment Loan SOE Statement of Expenditure SWWP Sarajevo Waste Water Project TA Technical Assistance UISDP Urban Infrastructure and Service Delivery Project UNDP United Nations Development Program USAID United States Agency for International Development VIK Sarajevo Water and Waste Water Company WWTP Waste Water Treatment Plant Vice President: Philippe H. Le Houerou Country Director: Jane Armitage Country Manager Marco Mantovanelli Sector Manager: Wael Zakout Task Team Leader: Jonathan S. Kamkwalala 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. BOSNIA AND HERZEGOVINA Sarajevo Waste Water Project CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 A . Country and sector issues.................................................................................................... 1 B. Rationale for Bank involvement ......................................................................................... 2 C . Higher level objectives to which the project contributes .................................................... 3 I1. PROJECT DESCRIPTION ................................................................................................. 3 A . Lending instrument ............................................................................................................. 3 B. Program objective and Phases ............................................................................................ 3 C . Project development objective and key indicators .............................................................. 3 D. Project components ............................................................................................................. 4 E. Lessons learned and reflected in the project design............................................................ 4 F. Alternatives considered and reasons for rejection .............................................................. 5 I11. IMPLEMENTATION ...................................................................................................... 6 A . Partnership arrangements .................................................................................................... 6 B. Implementation Arrangements ............................................................................................ 6 C . Monitoring and evaluation ofoutcomesh-esults .................................................................. 7 ... D. Sustainability....................................................................................................................... 7 E. Critical risks and possible controversial aspects ................................................................. 8 F. Loadcredit conditions and covenants ............................................................................... 10 IV. APPRAISAL SUMMARY ............................................................................................. 11 A . Economic and financial analyses ...................................................................................... 11 B. Technical ........................................................................................................................... 13 C . Fiduciary ........................................................................................................................... 14 D. Social................................................................................................................................. 15 E. Environment...................................................................................................................... 15 F. Safeguard policies ............................................................................................................. 16 G. Policy Exceptions and Readiness ...................................................................................... 17 Annex 1: Country and Sector or Program Background......................................................... 18 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 21 Annex 3: Results Framework and Monitoring ........................................................................ 23 Annex 4: Detailed Project Description...................................................................................... 25 Annex 5: Project Costs ............................................................................................................... 27 Annex 6: Implementation Arrangements ................................................................................. 28 Annex 7: Financial Management and Disbursement Arrangements..................................... 29 Annex 8: Procurement Arrangements ...................................................................................... 36 Annex 9: Economic and Financial Analysis ............................................................................. 44 Annex 10: Safeguard Policy Issues ............................................................................................ 51 Annex 11: Project Preparation and Supervision ..................................................................... 54 Annex 12: Documents in the Project File ................................................................................. 55 Annex 13: Statement of Loans and Credits .............................................................................. 56 Annex 14: Country at a Glance ................................................................................................. 58 Annex 15: Maps........................................................................................................................... 60 BOSNIA AND HERZEGOVINA SARAJEVO WASTE WATER PROJECT PROJECT APPRAISAL DOCUMENT EUROPE AND CENTRAL ASIA ECSSD Date: November 18,2009 Team Leader: Jonathan S. Kamkwalala Country Director: Jane Armitage Sectors: Sanitation (100%) Sector DirectodManager: Peter Thomson / Themes: Access to urban services and housing Wael Zakout (P); Municipal governance and institution building (S) Project ID: PO90675 Environmental screening category: B Lending Instrument: Specific Investment Loan Project Financing Data [XI Loan [ ]Credit [ ]Grant [ ]Guarantee [ ]Other: Source Local Foreign Total BORROWERRECIPIENT 2.00 0.00 2.00 International Bank for Reconstruction and 0.50 34.50 35.00 Develonment Total: 2.50 34.50 37.00 Borrower: Bosnia and Herzegovina FY 201 1 2012 2013 2014 2015 2016 hual 2.5 4.5 I 12.0 I 10.0 1 4.0 I 2.0 hnulative 2.5 7.0 I 19.0 I 29.0 I 33.0 I 35.0 Expected effectiveness date: June 15,2010 Expected closing date: November 30,20 15 Does the project depart from the CAS in content or other significant respects? [ ]Yes [XINO Re$ PAD I.C. Does the project require any exceptions from Bank policies? Re$
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