Document of The World Bank
FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 40986-NE
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 18.3 MILLION (US$30 MILLION EQUIVALENT)
TO THE
REPUBLIC OF NIGER
FOR A
LOCAL URBAN INFRASTRUCTURE DEVELOPMENT PROJECT Public Disclosure Authorized April 23,2008
Water and Urban I1 Country Department AFCF1 Africa Region
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 Public Disclosure Authorized Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective March 2008) Currency Unit = CFA Francs (CFAF) CFAF 1,000 = US$2.37 US$1 = CFAF421 US$1.64663 = SDR1
FISCAL YEAR January 1 - December 31
ABBREVIATIONS AND ACRONYMS
AAP Africa Action Plan AFD French Development Agency (Agencefranqaise de Dheloppement) AfDB African Development Bank ARMP National Procurement Regulatory Agency (Agence de Re'gulation des Marche's Publics) BEEEI Environment Assessment Bureau (Bureau d 'Evaluation Environnementale et des Etudes d 'Impact) BNC National Coordination Bureau (Bureau National de Coordination) CAS Country Assistance Strategy CDD Community Driven Development CDS City Development Strategy COA Contract Award and Bid Opening Commission CTEO Technical Commission for Bids Evaluations (Commission Technique d 'Evaluation des Offres) CUN Urban Community ofNiamey (Communaute' Urbaine de Niamey) CUM Urban Community ofMaradi (Communautb Urbaine de Maradi) DAN Sanitation and Urban Infrastructure Department (Direction de 1 'Assainissement et des Infrastructures Urbaines) DGAT Directorate for Land Administration (Direction Ge'ne'rale de 1 'Administration Territoriale) DGCMP General Directorate for Procurement (Direction Ge'ne'rale de la Commission des Marche's Publics) DGF General Directorate ofFinances (Direction Ge'ne'rale des Financements) DGI General Directorate ofTaxes (Direction GLne'rale des ImpGts) DPL Development Policy Loan DSDARP Poverty Reduction and Accelerated Growth Strategy Paper DUD Urban and Land Department (Direction de 1 'Urbanisme et des Domaines) EA Environmental Assessment EDF European Development Fund EMP Environmental Management Plan ERR Economic Rate ofReturn ESMF Environmental and Social Management Framework ESW Economic Sector Work FM Financial Management GDP Gross Domestic Product GoN Government ofNiger GTZ German Technical Cooperation ICB International Competitive Bidding FOR OFFICIAL USE ONLY
ICR Implementation Completion Report IDA International Development Association IEC Information, Education and Communication FR InterimUn-Audited Financial Report KfW KreditAnstalt Fur WiederAufbau LOUAF Urban and Land Management Orientation Law (Loi d 'Orientation sur I 'Urbanisme et I 'Ame'nagementFoncier) MDG Millennium Development Goal M&E Monitoring and Evaluation MPPM Manual ofLocal Government Procurement Procedures (Manuel de proce'dures de passation des marche's publics) MTPCD Ministry ofTerritorial Planning and Community Development MTR Mid-Term Review NCB National Competitive Bidding NEPAD New Economic Partnership for Africa's Development NGO Non-Governmental Organization NIGETIP Public Works Agency ofNiger (Agence Nigdrienne de Travaux d 'Inte'r&t Public) NPV Net Present Value O&M Operations and Maintenance OPEC Organization ofPetroleum Exporting Countries PADUM Urban and Municipal Development Project PAPST Transport Sector Program Support Project PARCCUN Capacity Building Project for the Urban Community ofNiamey (Projet d 'Amdnagement et de Renforcement des Capacite's de la Communautd Urbaine de Niamey) PDIL Local Urban Infrastructure Development Project (Projet de De'veloppement et d 'Infrastructures Locales) PDO Project Development Objective PEMFAR Public Expenditure Management and Financial Accountability Review PFM Public Financial Management PPF Project Preparation Facility PRnr Urban Infrastructure Rehabilitation Program (Programme de Rdhabilitation des Infrastructures Urbaines) RAP Resettlement Action Plan RPF Resettlement Policy Framework SBQC Selection Based on Quality and Cost sc Steering Committee SDR Special Drawing Rights SEEN Urban Water Supply Private Operating Company (Socie'te' d 'Exploitation des Eaux du Niger) SIL Sector Investment Loan SME Small- and Medium- Scale Enterprises UEMOA West African Economic and Monetary Union (Union Economique et Mone'taire Ouest Africaine) UNDP United Nations Development Program
Vice President: Obiageli K. Ezekwesili Country Director: Madani M. Tall Country Manager Ousmane Diagana Sector Manager: Eustache Ouayoro Task Team Leader: Christian Diou
~ 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.
NIGER Local Urban Infrastructure Development Project
CONTENTS
Page I. STRATEGIC CONTEXT AND RATIONALE ...... 1 A . Country and sector issues...... 1 B. Rationale for Bank involvement ...... 4 C . Higher level objectives to which the project contributes ...... 6 I1. PROJECT DESCRIPTION ...... 6 A . Lending instrument ...... 6 B. Project development objective and key indicators...... 7 C . Project components ...... 7 D. Lessons learned and reflected in the project design...... 13 E. Alternatives considered and reasons for rejection ...... 14 I11. IMPLEMENTATION...... 15 A . Partnership arrangements...... 15 B. Institutional and implementation arrangements...... 15 C . Monitoring and evaluation ofoutcomeshesults ...... 17 ... D. Sustainability...... 18 E. Critical risks and possible controversial aspects., ...... 19 F. Loadcredit conditions and covenants ...... 20 IV. APPRAISAL SUMMARY ...... 21 A . Economic and financial analysis ...... 21 B. Technical...... 22 C . Fiduciary ...... 22 D. Social...... 24 E. Environment ...... 25 F. Safeguard policies ...... 26 G. Policy Exceptions and Readiness ...... 27
... 111 Annex 1: Country and Sector or Program Background...... 28 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ...... 34 Annex 3: Results Framework and Monitoring ...... 35 Annex 4: Detailed Project Description...... 39 Annex 5: Project Costs ...... 50 Annex 6: Implementation Arrangements ...... 55 Annex 7: Financial Management and Disbursement Arrangements ...... 58 Annex 8: Procurement Arrangements ...... 69 Annex 9: Economic and Financial Analysis ...... 78 Annex 10: Safeguard Policy Issues ...... 83 Annex 11: Project Preparation and Supervision ...... 85 Annex 12: Documents in the Project File ...... 87 Annex 13: Statement of Loans and Credits ...... 88 Annex 14: Country at a Glance ...... 90 Annex 15: Map IBRD 35731 ...... 93
iv NIGER
LOCAL URBAN INFRASTRUCTURE DEVELOPMENT PROJECT
PROJECT APPRAISAL DOCUMENT
AFRICA
AFTU2
Date: April 23,2008 Team Leader: Christian Diou Country Director: Madani M. Tall Sectors: Roads and highways (20%); Other Sector ManagedDirector: Eustache Ouayoro social services (20%); Sanitation (20%); General public administration sector (20%); Sewerage (20%) Themes: Access to urban services and housing (P); Municipal governance and institution building (P); Decentralization (P); Infrastructure services for private sector development (P) Project ID: PO95949 Environmental screening category: Partial Assessment Lending Instrument: Specific Investment Loan
[ ]Loan [XI Credit [ ] Grant [ ] Guarantee [ ] Other:
For Loans/Credits/Others: Total Bank financing (US$m.): 30.00 Proposed terms: Standard IDA terms, with a maturity of 40 years, including a grace period of 10 vears. Financing Plan (USSm) Source Local Foreign Total BORROWERRECIPIENT 0.00 0.00 0.00 International Development Association 20.50 9.50 30.00
Total: 20.50 9.50 30.00 Borrower: Government ofNiger Niger Responsible Agency: Cellule de Coordination PDIL Bureau National de Coordination (BNC) BP 12989, Niamey Republic ofNiger Tel: 227 20 73 54 38 Fax: 227 20 73 21 91 priaintnet.ne
V Does the project depart from the CAS in content or other significant respects? No Re$ PAD L C [ Does the project require any exceptions from Bank policies? Re$ PAD IKG [ ]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”?
Project development objective Re$ PAD ILB,, Technical Annex 3 The project development objective is to increase and sustain access of urban residents to basic infrastructure and services, particularly those living in deprived settlements. To achieve this objective, the project will: (i)support capacity development of local governments and other stakeholders in charge of urban development to plan, program, deliver and maintain infrastructure and services in the selected cities; and (ii)finance local infrastructure investments in selected cities (roads and drainage works, water supply, food markets, truck terminals, etc.)
Project description [one-sentence summary of each component] Re$ PAD IL C, Technical Annex 4 The project will have three components: (a) Capacity building. The focus of this component is to build and consolidate management capacities for programming, implementing and managing urban infrastructure and basic services.
(b) Municipal investments for Niamey, Maradi and Dosso. The objective of this component is to: (i)upgrade infrastructure to increase access to basic services in the targeted cities, primarily in low-income settlements; and (ii)construct or rehabilitate infrastructure aimed at boosting local economic development: primary roads, food markets and truck terminals; and
(c) Support to implementation, monitoring and evaluation. This component will provide financing for implementation and monitoring of the project through the National Coordination Bureau (Bureau National de Coordination - BNC. It will include: (i)financing equipment and operating costs of the BNC (cost shared with the Transport Sector Program Support Project (PAPST); (ii)technical and financial audits; (iii)support to monitoring and evaluation; and (iv) information, education and communication for the project.
Which safeguard policies are triggered, if any? Re$ PAD IKF, Technical Annex 10 The two safeguards policies triggered are: Environmental Assessment (OP/BP 4.01) and [nvoluntary Resettlement (OP/BP 4.12). All Environmental Assessments and Resettlement Plans will be handled according to the provisions made in the Environmental and Social Management Framework (ESMF) and the Resettlement Policy Framework (RPF). These safeguard instruments have been prepared in accordance with national environmental policies and World Bank environmental and social guidelines and safeguard policies. The draft ESMF and RPF were reviewed by the Bank and found acceptable before publication. The safeguard documents are available upon request from the BNC, in the three targeted municipalities and at the Environment Assessment Bureau (Bureau d 'Evaluation Environnementale et des Etudes d 'Impact - BEEEI).
Significant, non-standard conditions, if any, for: Re$ PAD III.F Board presentation: None.
Loadcredit effectiveness: (i) The Recipient has adopted a Project Implementation Manual in form and substance satisfactory to the Association; (ii) The Recipient has established a computerized information system for the financial management of the Project (including software customization, adoption of the Project Manual of Financial, Accounting and Administrative Procedures in form and substance satisfactory to the Association, training and short term assistance), in a manner satisfactory to the Association; and (iii) The Recipient has appointed a Project Coordinator with terms ofreference, qualifications and experience satisfactory to the Association.
Covenants applicable to project implementation: The standard clauses described in Article IV of the financing agreement are applicable. The following additional clauses will be added: (i) The Municipal Contracts for Niamey, Maradi and Dosso as well as the contract management agreements with the Public Works Agency of Niger (NIGETIP) will be submitted to IDA for approval; (ii) The Government will prepare for and discuss at mid-term review; a) A draft Law on public contract management and delegation (maitrise d'ouvrage publique); b) A global framework for providing assistance to local authorities; c) A mechanism for mobilizing and transferring financial resources for municipalities; and d) An assessment ofprocurement capabilities ofthe selected municipalities. (iii) The BNC will appoint, within three months after effectiveness, the external auditor whose terms of reference, qualification and experience are acceptable to IDA (launched, jointly with PAPST).
vii
I. STRATEGIC CONTEXT AND RATIONALE
A. Country and sector issues
1. Niger is a vast, but poor, landlocked country, with a current estimated population of about 14 million', concentrated in a narrow band of arable land along its southern border. It is among one ofthe poorest countries in the world (ranked 174th out of 177) on the UNDP Human Development 2006 Index. The gross domestic product (GDP) per capita was US$240 in 2006. Sixty-one percent of Niger's population lives on less than a dollar a day. Economic growth remains low, averaging an annual rate of 1.9 percent between 1990 and 2000. Niger's second Poverty Reduction and Accelerated Growth Strategy Paper, which was completed in July 2007, provides a global framework for implementing sector strategies aiming at achieving the Millennium Development Goals (MDGs). However, recent analysis shows that the country will not be able to reach its goals for 2015.
2. Decentralization. The Decentralization Laws (Laws 2002/0122, 2002/015 and 2002/016 dated June 11, 2002) clarify the fundamental principles for transferring power to regions, departments, and municipalities. The process, which was initiated in July 2004 with the first municipal elections, involves the creation of four metropolitan areas (Niamey, Maradi, Tahoua, and Zinder) and 265 municipalities (including 52 urban municipalities and 213 rural municipalities) spread among 36 departments and 8 regions. However, the mechanism for the transfer of the very limited resources to municipalities is not in place. It is bound to take time, given the scope ofthe task at hand and the lack of financial resources. According to the sector study carried out in 2004 for the High Commission for Administrative Reform and Decentralization about one third ofthese municipalities will face a difficult financial situation.
Rapid urbanization and lack of basic urban infrastructure
3. High population growth (3.4 percent annual rate) is widely considered as a constraint to economic development and improvement of living conditions. The very high fertility rate and the decrease in the mortality rate since 1990, as well as the young age of the population have created a population growth trend that will continue unless a strong family planning strategy is implemented rapidly3 . However, fertility rates have been declining for urban and educated women, as the use ofmodem contraception is nearly 10 times more common in urban areas than in rural areas. Differences in fertility rates have been noted according to the place ofresidence: an average of 5.2 children was born per woman in Niamey, 6.5 children in the other cities and 8 children at the national level4
4. The urbanization ratio is about 23 percent; with urban dwellers totaling 3 million in 2003. The urban population has been growing rapidly with an annual growth rate estimated at 6 percent5. If current trends continue, the urban population will double in the next 12 years.
1 Source: World Bank World Indicator Report 2006 * Loi determinant les principes fondamentaux de la libre administration des rkgions, dkpartements et communes ainsi que leurs compktences et leurs ressources. ' Feeding, Educating, and Caring for All Nigeriens: Demographic Perspectives, World Bank working paper, March 2004 Enqugte de'mographiqueet de sante' 1998. CAFWDHS The Urban Transition in Sub-Saharan Africa, Africa Region Working Paper Series # 97, C. Kessides, December 2005.
1 5. Urbanization has occurred unevenly in the country. Niamey, the capital city, counts about 880,000 inhabitand and has more population than the 7 regional capitals together. Other main cities, such as Zinder, Maradi, and Tahoua count less than 200,000 inhabitants each and attract little local investment, as a result of their lack of infrastructure services and facilities. Secondary cities in Niger need a critical mass of investments in infrastructure to create the enabling conditions for economic activities to flourish, develop markets for agricultural commodities, together spurring the economic potential oftheir rural hinterlands.
6. Rapid urbanization is also causing significant problems. Local Governments in charge of managing cities in Niger are not adequately prepared to program and manage their investments, and lack the financial and human resources to address the key development challenges faced by the urbanization challenge. As a consequence, living conditions have worsened for most of the urban population. Many areas lack infrastructure as well as access to basic services. In 2001, it was estimated that 45 percent of the urban population was served through 45,600 water connections and 1,850 stand posts when 44 percent of Niamey’s population had private water connections. It is estimated that only 36 percent of all urban households had access to electricity in 1998, as compared to about 50 percent for the Niamey metropolitan area in 2004.
Urban Poverty
7. The urbanization process has also involved poverty and social exclusion. Available data suggests that poverty affects 52 percent of the urban population (as compared to 65 percent at the national level), of which 26 percent is extremely poor. In The State of the World Cities 2006/2007, UN-Habitat estimates that Niger has an annual growth rate of slums of5.9 percent. Rapid population growth, urban inhabitants with widespread income disparities living side by side, and weakened social cohesion in urban areas have excluded a large share ofthe population from the benefits ofurbanization and the affected population only survives on temporary jobs in the informal sector (especially the case of the youth). This situation could lead to increased insecurity in the next few years unless social integration is improved through better access to basic infrastructure services and increased employment opportunities. Because of the magnitude of poverty in rural areas, the Government and the donors did not place much emphasis on resolving urban poverty except through the Urban Infrastructure Rehabilitation Program (PRIU). Urban poverty presents new needs and opportunities for intervention as recent trends in urbanized areas show that: (i)a vast majority of city dwellers are poor and vulnerable; (ii) localized pockets of extreme poverty develop in the larger cities; and (iii)infrastructure programs are needed to support poverty reduction.
Cities and economic growth
8. As anywhere in the world, economic growth and development cannot occur without strong and vibrant cities able to provide employment and trade opportunities. In the current situation, cities already play an important role in the creation of national wealth. A little less than one-fourth of the population located in the cities generates approximately 45 percent ofthe country’s GDP (in the secondary and tertiary sectors, mining sector excluded) but cities need to have the conditions to perform effectively in order to hlly unleash their economic potential.
2006 estimate from the Statistics Bureau
2 9. The rural areas also depend on a network of small and medium-size urban centers that can provide local outlets for consumption or for marketing of agricultural products. The development of such centers could slow down rural migration to the capital city and favor a reduction ofthe birth rate, considering the behavior changes taking place in that respect in urban areas. Such a network would also enable the development, in secondary cities, of a private sector, which would drive investment, local development and employment.
Limited technical capacity and financial resources at the local level
10. Capital investments (all sectors combined) is largely realized through external financing (70 to 90 percent), with a national government share representing only 10 to 30 percent of investment financing. In the past few years, rural public investments have surpassed more than 10 times urban public investments. Less than 8 percent of the national investment budget has been dedicated to urban infrastructure (urban sector investments amounted to only CFAF 8.8 billion out of a budget of CFAF 113.1 billion in 2002), an amount that bears no relationship to the importance of cities in the creation ofnational wealth. As in all other sectors, nearly all urban infrastructure investments were implemented with more than 80 percent external financing. The International Development Association (IDA), through the IDA-financed Urban Infrastructure Rehabilitation Program (PW(Credit 2957-NIRYclosed March 2003) was by far, the largest source ofurban investments from 1999 to 2003, representing nearly 60 percent of all small-scale infrastructure investments (US$4.7 million out ofUS $8.8 million in 2002).
11. The municipalities’ ability to contribute to urban investment financing is very limited (CFAF 615 million in 2002, or only 0.6 percent ofthe overall national investment budget). The reasons for such a poor contribution is: (i)the weak fiscal potential and the limited level of resources transferred from the central government to urban municipalities; and (ii)the low tax- collection capabilities of urban municipalities (with the relative exception of Niamey). Despite the new decentralization policy, local taxes funds collected by the General Directorate of Finances (Direction Ge‘ne‘rale des ImpSts - DGI) have not been fully or timely transferred to local governments.
12. Out of their limited budget, the municipalities’ urban capital investment represented, in 2002, 26.5 percent of Niamey’s investment budget, 31.8 percent in the other regional capitals, and 34.6 percent in the other municipalities. In the same year, maintenance expenditures amounted to 14.8 percent ofNiamey’s operating budget, 5.3 percent in the case of the regional capital cities, and 7.5 percent in the other urban municipalities. The municipalities’ average per capita urban spending (investment and maintenance combined) amounted only to CFAF820 or US$1.78 [CFAF 1,357 (US$2.94) in Niamey, CFAF 298 (US$0.65) in the regional capitals, and CFAF 3 11 (US$0.67) in the other urban municipalities7]. This limited amount of available financing has a direct impact on development oftechnical capacities.
National strategy and local initiatives
13. The Government of Niger prepared and approved the National Urban Development Strategy in October 2004. This strategy provides guidelines and sector policy framework in the
’ ESW, Republic ofNiger. Niger Urban Sector Development Strategy, 2004.
3 context ofthe on-going process of decentralization and in line with poverty reduction initiatives. The four main strategic objectives are: (i)strengthening the institutional and regulatory framework for urban development; (ii)improving national and local governance and urban management; (iii)stimulating local economic development; and (iv) supporting urban social integration by improving the quality of life in poor neighborhoods and contributing to reaching the Millennium Development Goals (MDGs). In an effort to implement the relevant programs, the cities of Maradi and DOSSO,also prepared in 2005 their own City Development Strategies (CDS) with the support ofthe Cities Alliance Program and the Bank. These strategies are based on the urban programming tools developed under the PRIU. They contributed to developing a framework for improved consultation and involved communities in the identification and planning process for fbture urban interventions. However, the National Urban Development Strategy failed to foster effective and sustained urban development as well as actual accountability of municipalities in the absence of: (i)adequate national coordination for urban interventions; and (ii)an operational mechanism for transferring resources from central to local governments.
B. Rationale for Bank involvement
14. The proposed Local Urban Infrastructure Development Project fits in a long term and coherent Bank involvement in the sector in Niger. IDA has already been involved for more than 10 years in the urban development sector in Niger. Lessons learned from these years of intervention in the urban sector in Niger have shown that development of sustainable infrastructure services in urban centers requires actions to reinforce the decentralization framework. This includes addressing the question of intergovernmental fiscal transfers and the ability of the central government to support decentralized entities as well as local revenue mobilization efforts, participation of beneficiaries to investment efforts, strengthening of management capacity and clarifying accountability relationships and developing partnerships.
15. This proposed project has benefited from the following initiatives: (i)the PRIU, closed in March 2003; (ii)an Urban Economic Sector Work completed in December 2004; (iii)two city development strategies carried out with the Cities Alliance Program; and (iv) the household survey carried in the district ofNiamey I11 hnded under the Norwegian Trust Fund. The project is being developed on the basis of the lessons learned and will be implemented in parallel with an ongoing urban operation financed by the French Development Agency (Agence Franqaise de De'veloppement - AFD).
16. The project draws on the positive lessons from the P€UU implemented from 1997 to 2003, which largely involved the local private sector and bore investments that had positive impacts on poverty alleviation and employment generation. One of the achievements of the project was the development of urban investments planning tools (aerial maps, urban financial and organizational audits, and city development contracts) to better manage the urban sector. These tools already helped some of the municipalities improve their performances. The Implementation Completion Report (ICR) confirmed the value ofthe city contract approach used under the PRIU but emphasized the need for strengthening capacity at all levels. The fact that mayors are now directly elected is already reinforcing their role and their accountability in the management oflocal activities.
4 17. The Urban Economic Sector Work (ESW) financed by the Bank was completed in December 2004 in close collaboration with Government representatives and other donors (AFD and the German Technical Cooperation - GTZ). Joint missions were organized with AFD, which now financially supports a project also using the same approach and the programming tools developed under the PRIU. The main recommendations of the ESW included: (i)Government’s reengagement in the sector through increased public investment financing; and (ii)improvement of the management of public expenditures and well-balanced urban development through, in particular, the promotion of secondary cities and market centers that would be likely to stimulate local economic (and rural) development.
18. The urban municipalities of Dosso and Maradi, which had benefited from project interventions under the PRIU, completed their own city development strategies (CDS), under the Cities Alliance Program and IDA funding. These strategies, finalized in December 2005, were carried out with the participation of the newly elected mayors, as well as local stakeholders and the civil society. They provided an adequate framework for the design ofthe proposed project.
19. The proposed project would consolidate a coherent approach materialized through current or planned interventions in the infrastructure sector: (i)the Water Sector Project (Credit 3505- NIR and Grant H259-NIR), aimed at, inter alia, the rehabilitation ofthe water distribution system and social connections; and (ii)the proposed Transport Sector Program Support Project (PAPST, under preparation), aimed at supporting the interurban road network and focusing on maintenance and safety. The proposed project has been be prepared and will be implemented in close collaboration with these two projects, to take advantage of experience and best practices as they develop.
20. The operation is likely to leverage additional financing from other donors who also wish to resume support to this strategic sector. AFD is already active in the sector and a joint approach is being developed with the Bank for use ofthe same implementation tools (Contrat de Ville) and supervision activities. The Bank would support the definition of a broader strategic framework for involvement of national urban stakeholders and donors and for financing mechanisms. Bank involvement would also allow for fbrther mobilization of donors’ financing; as in the past, the Government has used previous IDA interventions in the urban sector to mobilize significant partner financing (OPEC, AfDB, KFW, and AFD).
21. The Bank is therefore in a good position to support this proposed operation, which will be implemented with the newly elected mayors, thus strengthening local governance and supporting the ongoing decentralization process. The Government of Niger (GoN) has recently clearly demonstrated its political will to commit strongly to urban development and this project, through the recent ministerial reshuffling of the Ministry of Urban Affairs, Housing, and Land Registry (formerly the Ministry of Infrastructure) and the preparation of a the National Urban Development Strategy. Moreover, the GoN is willing to improve coordination of donors’ interventions in the urban sector in order to better support decentralization as a strategic framework. Bank intervention would primarily address the following issues: (i)limited institutional and implementation capacity in urban management; and (ii)insufficient provision of infrastructure and services.
5 C. Higher level objectives to which the project contributes
22. The proposed project, prepared at the request ofthe Government ofNiger, is in line with the strategic orientations of the country’s second Poverty Reduction and Accelerated Growth Strategy Paper (DSDARP 2008-2012), finalized in July 2007 focusing on: (i)increasing financial resources for accelerating growth; (ii)improving human resources and equity in access to basic services; and (iii)promoting a better development framework. Accelerating growth in order to improve living conditions will require strong and difficult decisions from the Government to reduce the important shortage in infrastructure. Therefore, promoting a sustainable increase in access to infrastructures and services in urban centers, both ofwhich are main contributors to the GDP, is key for social and economic development in Niger.
23. In support to the DSDARP, the Government requested a strong focus of Bank support to the country to be on growth through infrastructure investment. The Bank’s Country Assistance Strategy (CAS) for Niger for the period covering FY08-11 will be presented to the IDA Board in May 2008. The project activities are fully aligned with the main features of the CAS for the period covering FY08-11, in particular with regard to: (i)strengthening access to social services such as education, health, water, and sanitation; (ii)promoting income generating activities; and (iii)strengthening local development management capacities. Project activities are consistent as well with the West African Economic and Monetary Union’s (UEMOA) regional economic program and the New Economic Partnership for Africa’s Development (NEPAD).
24. The proposed interventions are also central to achieving two of the MDGs through improving services to the poor and urban living conditions, and strengthening municipal management. In particular, capacity building activities will help move towards increased access in water, enhance sustainability through capacity building, and improve living conditions in slums and poor settlements.
25. Finally, the proposed project is fully aligned with the recommendations of the Africa Action Plan (AAP), which sets forth the Bank’s strategic objectives for Africa, especially in terms of shared growth with a focus on results and outcomes to help countries reach as many MDGs as possible by 2015. It focuses on: (i)scaling up support to enhance the development of local governments, aimed at improving service delivery, accountability and participation; (ii) closing the infrastructure gap; and (iii)supporting the drivers oflocal growth.
11. PROJECT DESCRIPTION
A. Lending instrument
26. IDA will support the financing ofthe proposed Local Infrastructure Development Project through a Sector Investment Loan (SIL). This is considered to be the most appropriate instrument for this project due to the sector issues to be addressed, the nature ofthe investments it will finance, and the need to further strengthen the institutional arrangements in the urban sector.
6 B. Project development objective and key indicators
27. The project development objective is to increase and sustain access ofurban residents to basic infrastructure and services, particularly those living in deprived settlements.
28. To achieve this objective, the project will: (i)support capacity development of local governments and other stakeholders in charge of urban development to plan, program, deliver and maintain infrastructure and services in the selected cities; and (ii)finance local infrastructure investments in selected cities (roads and drainage works, water supply, food markets, truck terminals, etc.. .).
29. The key indicators for assessing achievement of the project development objective at the end ofthe implementation period are:
0 Additional population in targeted areas benefiting from: (i)all-year access to transportation; (ii)protection against periodic flooding; and (iii)access to water supply and sanitation services.
0 Additional financial resources collected from markets and truck terminals in the Urban Community ofMaradi (CUM) and Dosso.
The use of these indicators and collection methodology are detailed in Annex 3, along with results indicators measuring intermediary outcome and project outputs.
C. Project components
30. Total project cost will amount to US$ 30 million, entirely hnded by IDA. It will be implemented over a four-year period (July 2008 - July 2012). The detailed project description is given in Annex 4. Detailed project costs are given in Annex 5.
Project design
31. The project design is based on the lessons learned under the PRIU, in particular: (i)the need for a clear and focused objective; (ii) adapted institutional arrangements; (iii) implementation limited to selected cities to ensure significant impact; and (iv) emphasis on capacity building. It has also been confirmed with the Government that specific attention will be dedicated to designing, by project mid-term, a national framework for supporting city development and transfer mechanisms for channeling funds to local level. Selection of project activities was based on the following main criteria: (i)stakeholders’ established priorities; (ii) ability to substantially improve living conditions, particularly in the low-income settlements; and (iii)complementarities with other Bank- or other donor-funded operations.
32. The process of identification and validation of priorities included the following: (i)a preliminary list of investments, based on the results of the various audits carried out in the targeted cities and, in the case of Maradi and DOSSO,the city development strategies; (ii) extensive consultations with a broad range of stakeholders, including the beneficiary communities, elected officials, central and local government officials and agencies, the private sector, and NGOs; (iii)an arbitrage among the various options in terms of type of investment
7 (e.g. road or drain) and level of service (e.g. width of road) within a given financial envelope (e.g. width of the road); and (iv) specific focus on poor neighborhood. This process resulted in the selection of the following investments: drainage works, water supply, urban roads, primary schools, latrines and municipal facilities such as markets and truck terminals. In addition, targeted institutional strengthening of major urban service providers is designed to ensure sustainability ofthe financed activities.
33. The project is expected to complement ongoing and planned activities funded by IDA and other donors, as follows: (i)the future Transport Sector Program Support Project, designed under a similar methodology, will be sharing part of the operational costs of the BNC, in particular for key fiduciary personnel; (ii)the Water Sector Project will implement network extensions and additional public standpipes in selected settlements in Niamey; (iii)the Community Action Program will finance investments in Niamey V, and in parts of Maradi and Dosso; (iv) the Multi-Sector Demographic Project will finance construction of health and social facilities and provide support for awareness campaigns in the targeted municipalities; and (v) the third Development Policy Loan (DPL), currently under preparation, is being designed to sustain the Government’s efforts to improve service delivery to the poor and implement reforms in public sector management. The proposed project will also complement efforts made under the first and second DPL in favor of agricultural growth and local development, by strengthening agricultural market operations in towns such as Maradi and Dosso. Further, identification of IDA-financed activities in Niamey had the benefit of prior AFD-funded technical audits in Niamey and took stock of them in identifying local level investments. Finally, the project will rely extensively on the small- and medium-scale local enterprises (SMEs) of the public works and construction sectors. It will encourage a labor-intensive works approach for job creation for unskilled craftsmen, thus contributing to income generation at the local level.
Selected cities targeted by the project
34. Project activities will focus on the cities of Niamey, Maradi and Dosso. These cities were selected by the GoN, in consultation with the Bank team on the basis of (i)their economic potential: Niamey, as the capital and main contributor to GDP, and Maradi and DOSSO,because of their strategic location and their regular commercial exchanges with Nigeria, in particular, as well as their characteristics as “market towns”; (ii)their respective role in the urban sector in Niger (estimated populations of 880,000 in Niamey; 180,000 in Maradi, and 80,000 in Dosso); (iii)the opportunity to follow-up on the conclusions and recommendations of the two CDSs prepared for Maradi and DOSSO,as well as detailed needs analyses financed by AFD for Niamey; and (iv) the need for testing implementation mechanisms to prepare dissemination in other cities of the lessons learned and tools developed under the project. Capacity building activities (Component A) will concern these three cities and key stakeholders in the central government and the private sector, whose improved performance is critical for project implementation. To enhance its contribution to the national urban development strategy, the project will support the Government in defining: (i)a draft law on public contract management and delegation (Maitrise d ’Ouvrage Publique); (ii)a global framework for providing assistance to local authorities; and (iii)a mechanism for mobilizing and transferring financial resources for municipalities. These three proposals will be discussed at the project mid term review (MTR). Physical investments (Component B) will be carried out in the three cities.
8 Components
35. The project will have three components: (a) capacity building; (b) municipal investments for Niamey, Maradi and Dosso; and (c) support to implementation, monitoring and evaluation. All estimated costs mentioned below include taxes.
Component A: Capacity building (estimated cost: US$I.96 million)
36. The focus of this component is to build and consolidate management capacities for programming, implementing and managing urban infrastructure and basic services. The component includes: (i)support to the local stakeholders in the targeted cities: Urban Community of Niamey (CUN), Urban Community of Maradi (CUM), the municipalities of Niamey, Dosso and Maradi for improving project implementation; (ii)support to selected central governmental institutions active in the areas of urban management, to strengthen public stakeholders’ capacities in areas of project objectives, beyond the project’s targeted cities; and (iii)support to the private sector, mostly local contractors and consultant firms involved in project implementation.
37. Sub-component A. I (estimated cost: US$I.O7 million) - Support to local authorities. This sub-component will focus on capacity building activities for local authorities and targeted agencies in the selected cities. It will include activities aimed at: (i)strengthening capacities for programming, implementing and managing basic infrastructures and basic services, including solid waste and income generating investments; (ii)enhancing procurement capacity and local governance in procurement; (iii) supporting preparation and actual implementation of maintenance programs for municipal infrastructure and equipment (markets, truck terminals, public latrines and standpipes, roads, building and other infrastructure); and (iv) supporting specific activities to improve overall management at the local level and to increase municipal revenues, as proposed in the financial audits carried out in the selected cities: implementation of a computerized system and dissemination of an accounting manual (based on the one prepared under the Capacity Building Project for the Urban Community of Niamey - PARCCUN); recovery of overdue taxes; awareness campaigns to improve tax payers’ willingness to pay; dissemination of the municipal fiscal manual (prepared under the PARCCUN); and training for financial management, including budget preparation and spending.
38. Special efforts will be dedicated to the need for better collection and management of taxes directly managed at the local level, like market fees, with the objective of strengthening their capacity to finance operation and maintenance of the investments. Once tested in the selected cities, the activities designed to increase municipal revenues could be extended to other cities by the central government agencies through other projects.
39. Sub-component A.2 (estimated cost: US$O. 73 million) - Support to central government entities. This sub-component will focus on support to selected central government institutions in charge ofurban development and decentralization sectors. These activities are two-fold:
a) Improvement and dissemination of planning and programming tools developed under the PRIU and used in the current project, in particular: preparation and dissemination of manuals and sample documents related to the preparation of
9 urban, municipal and financial audits, city development contracts, city development strategies, simple urban planning documents, procurement and sample bidding documents; and preparation of drainage master plans in Maradi and Dosso; and
b) Technical assistance aimed at strengthening the urban development and decentralization frameworks, including: support for legal and institutional texts and regulations; and definition of a national framework for urban sector development and a resource transfer mechanism from central to local level.
40. Sub-component A.3 (estimated cost: US$O.ld million) - Support to private sector. This sub-component is aimed at strengthening the professionalism of the private implementation capacity of public works and construction sectors in Niger: civil works and construction contractors and consultant firms in charge of studies and supervision ofworks. It will contribute to improving the quality of infrastructure implemented under the project. Activities will be carried out in close cooperation with ongoing activities financed under the European Development Fund carried out by the Ministry of Public Works with technical assistance, and monitored under the PAPST, thus covering the road works. For contractors, capacity building activities under the project will primarily focus on construction works. Training modules will primarily focus on procurement and preparation ofbids, organization ofworks, internal controls and supervision, and management of environmental and social impacts.
Component B: Municipal investments for the cities of Niamey, Maradi and Dosso (estimated cost: US $20.13 million)
41. The main objective ofthis component is to upgrade infrastructure to:
a) increase access to basic services in the targeted cities, primarily in low-income settlements. This includes construction or rehabilitation of roads to facilitate access to and from land-locked settlements; drainage works, water stand-posts, public latrines, health and social facilities, etc.; and
b) construct or rehabilitate infrastructure aimed at boosting local economic development: primary roads, food markets and truck terminals.
42. The selection oftargeted poor urban settlements in each city is based on the conclusions of the CDS and urban audits carried out in the cities. It takes into account the need to reach the neediest population based on: (i)income; (ii)population density; and (iii)existing access to services. Within the neighborhoods, the selection of investments follows a methodology based on experience from other countries of the region (Senegal, Guinea, Mauritania and Burkina Faso). It relies on: (i)the core role of the municipalities; (ii)an extensive participation on the part of the beneficiaries (population in under equipped areas, merchants in the markets etc.); (iii) the search for an adequate level of service, based on affordability and as arbitrated by the beneficiaries; (iv) gradual solutions, allowing for a progressive improvement of the level of service; (v) the absence ofresettlement, to the extent possible; (vi) the provision ofprogramming and budgeting for maintenance activities; and (vii) the use of local resources (local SMEs, labor- intensive techniques and local construction materials when possible).
10 43. Allocation of resources for investments in each of the selected cities is based on the respective weight of the urban population and municipal revenues, provided by the BNC. Identified investments include so far: (i)small infrastructure works (mostly local roads, drainage works, water networks and stand-posts, schools, and health, cultural and sanitary facilities) in poor neighborhoods in Niamey, Maradi and Dosso; (ii)a primary road in Niamey, removing bottlenecks to access to services and improving access to services for key neighborhoods in Niamey I,11, I11 and N; and (iii)construction, extension or renovation of income generating infrastructure in Dosso and Maradi (main food markets and truck terminals). The roads and drainage works were selected on the basis of their ability to facilitate access to and from land- locked settlements, with the objective of improving their integration in the urban economy and contributing to growth. Water supply, health, social and sanitation facilities will be located so as to make them accessible to as many people as possible, in line with MDG’s objectives. Finally, investments related to construction, extension or renovation of the food markets and truck terminals of Maradi and Dosso were also listed as top priorities in the relevant CDS because of their ability to support local economic development in a mostly-rural environment. Although this process would have allowed for an allocation of the entire envelope for Component Bya small portion ofthe envelope (about 15 percent or US$3.1 million) has been reserved for hture operations to be identified in each city during the first year ofproject implementation, to support the capacity building activities linked to programming and planning investments at local authorities level (Component A. 1).
44. Project activities pertaining to this component will be linked with the activities of the Niger Multi-Sector STI/HN/AIDS Support Project and HD in order to make the better use of existing resources to address both HIV/AIDS and family planning issues (information campaigns, capacity building, and possibly, construction of small health-care centers) when the facilities are delivered to the municipalities. With regard to HIV/AIDS, environmental annexes in the bidding documents will detail the recommendations regarding prevention measures to be implemented by the contractors on the work sites. A baseline assessment of existing infrastructure and services was carried out prior to project preparation and will provide benchmarks for follow-up, with regular progress assessments financed under Component C.
Sub-component B.1. For the city of Niamey (estimated at US$12.89 million)
45. Identification of the investment program is based on the AFD-financed urban audits carried out in the five municipalities ofNiamey in 2007. It takes into account the results of the IDA-financed 2004 poverty assessment and 2007 feasibility studies for improving the quality of life carried out in Niamey V.
46. This program includes: (i)improvement of 9.25 km of a East-West primary road linking Niamey I,11, I11 and IVYallowing for an upgraded transport system in densely populated areas in the North of the city and better access to important education and economic equipments: several schools, the main livestock market of Toukarou, two secondary markets and a main mosque (estimated US$3.6 million); and (ii)the following small infrastructure works:
- In Niamey I(estimated US$2.1 million, incl. portion of East-West Primary Road): upgrading of two secondary markets (Recasement and Yantala bas); improvement of
11 schools (classrooms, latrines, fencing) ; construction of a health center in Lossogoungou; and various equipment in Youth Centers;
- In Niamey I1 (estimated US$2.9 million, including a portion of East-West Primary Road): improvement of schools (classrooms, latrines); contruction of a health center in Dar es Salam; and upgrading ofYouth Centers;
- In Niamey I11 (estimated US$3.1 million, including a portion of East-West Primary Road): upgrading ofabout 1.9 km of local roads; contruction of0.6 km ofdrains; and improvement ofschools (classrooms, latrines, fencing);
- In Niamey IV (estimated US$3.0 million, including a. portion of East-West Primary Road): upgrading of about 3 km of local roads; contruction of 0.3 km of drains; improvement of schools (classrooms, fencing); contruction of a health center in Quartier Aviation; fencing of a cultural center; and improvement of a municipal building;
- In Niamey V (estimated US$1.8 million): upgrading of about 2.4 km of local roads; improvement ofschools (classrooms, latrines, fencing); implementation of three stand posts.
Sub-component B.2. For the city of Maradi (estimated at US$5.0 million)
47. The program is based on the results of the IDA-financed urban audits, as well as on the feasibility studies for the income generating investments carried out in 2007 (financed under Project Preparation Facility - PPF). Income-generating activities and poor neighborhoods have been identified through the Maradi CDS, carried out in 2005.
48. This program includes: (i)upgrading the Maradi Central Market (estimated cost: US$2.15 million), including: connection to basic services (power, water, lighting, drainage, internal pedestrian paths, uploading/downloading facilities) and construction of warehouses; (ii) construction of the truck terminal (estimated cost: US$0.8 million), including: connection to basic services (power, water, lighting, drainage, uploading/downloading facilities) and various buildings (administration, fencing, entry gate); (iii)upgrading of a building for technical services (estimated cost: US$ 140,000); and (iv) small infrastructure works (estimated cost: US$1.91 million) aimed at improving living conditions in the low-income settlements of Bagalam, Mokoyo, Dan Goulbi, Limantchi, and Maradoua (156 ha; 47,000 inhabitants) including upgrading of about 0.85 km of local roads in Bagalam and Sabongari; contruction of drains in Bagalam; implementation of water stand posts and latrines in Bagalam, Mokoyo, Dan Goulbi, Limantchi, and Maradoua; and improvement of schools (classrooms, latrines).
Sub-component B.3. For the city of Dosso (estimated at US$2.24 million)
49. The program is based on the 'results of the IDA-financed urban audits, as well as on the feasibility studies for the income generating investments carried out in 2007 (financed under the PPF). Income-generating activities and poor neighborhoods have been identified through the Dosso CDS, carried out in 2005.
12 50. This program includes: (i)upgrading the Dosso Central Market and Small Market (“Petit Marche‘”) (estimated cost: US$0.75 million,) to allow for the development of activities to be shifted from the Central Market to the nearby Small Market, including: connection of the two markets to basic services (power, water, lighting, drainage, internal pedestrian paths); construction ofa warehouse at the Central Market; construction of a few specialized shops at the Small market (e.g. butcher shops); (ii)construction of the truck terminal (estimated cost: US$0.45 million), including: connection to basic services (power, water, lighting, drainage) and various buildings (administration, fencing, entry gate); and (iii)small infrastructure works aimed at improving living conditions in the low-income settlement of KouaratCgui (estimated cost: US$1.O million) including rehabilitation of 0.5 km of local urban road; construction ofabout 1.1 km ofdrains, and implementation ofwater stand posts and latrines.
Component C: Support to implementation, monitoring and evaluation (estimated cost: US$2.16 million).
5 1. This component will provide financing for implementation and monitoring ofthe project through the BNC. It will include:
- Financing equipment and operating costs ofthe BNC (cost shared with PAPST);
- Technical and financial audits. Financial audit will be carried out on an annual basis. Technical audit will be carried out at MTR and completion of the project on the portfolio ofmunicipal investments, implemented at municipal and Nigetip level. The BNC will be responsible for these audits, on the basis of terms of reference to be submitted to IDA;
- Support to monitoring and evaluation. This sub-component will include: (i)updating of the integrated management software in use at the BNC; and (ii)two short term technical assistance. missions in preparation for the mid-term review and closing of the project; and
- Information, education and communication (IEC) for the project.
52. The remaining US$5.75 million will be allocated to the refund ofthe Project Preparation Facility (US$O.90 million) and the unallocated amounts for economic and physical adjustments (US$1.61 million and US$3.24 million respectively).
D. Lessons learned and reflected in the project design
53. The lessons highlighted below have been learned from (i)Bank-financed urban operations in Niger and other African countries; (ii)the Urban Economic and Sector Work (ESW) completed in 2004 for Niger; and (iii)other multi- and bi-lateral donors recent interventions in support to Niger’s urban sector, including the joint Cities Alliance, and Bank- supported City Development Strategies (CDS) in targeted cities. The main .lesson gained from these initiatives is to focus on the main objective ofincreasing access to basic infrastructure and services, while supporting capacity building to ensure sustainability. The following summarizes the lessons learned and how they have been taken into consideration in the design of this Local Urban Infrastructure Development Project (PDIL):
13 Targeting a large number of municipalities is only possible if sound mechanisms are in place. In spite of recent progress, the country still lacks such a global urban development framework and urban projects in Niger should adopt a simple design adapted to local capacities. The PDIL focuses on only three cities to provide a critical mass and avoid spreading the financing among too many cities. Detailed social, urban and financial analyses were conducted to help streamline the capacity building and investment programs on the most relevant issues. The project will also make a strong use of the practical methodological tools developed under the PRIU.
The selection of investments should be based on a participatory approach. The investments selection process was initiated through the urban audits implemented with methodology defined in the PRIU. These audits were extremely usehl in establishing a preliminary list of proposed investments which was later adjusted to the available financing through a participatory approach. The option followed in the PDIL is to try to achieve more modest levels ofservice, but increase access to services for a larger segment ofthe population.
The investment program should be supported by capacity building activities to improve sustainability. This was well evidenced through the PRIU. The PDIL will therefore strengthen the capacity of the public and private stakeholders, with a view to emphasizing responsibility and accountability. This is a condition for the projected investments programmed under Component B to be implemented effectively, operated and maintained in a sustainable manner, with the expected positive impact on local economic development. Actual efforts made at local level on maintenance will be monitored.
Support to decentralization should be carefully approached. The decentralization process, underway since the first municipal elections of2004, will greatly modify the local context and boost the role and image ofthe new mayors. However, a lot remains to be done at the local level. As evidenced in the organizational and financial audits prepared during project preparation, local governments face major weaknesses in their lack of organizational frameworks, poor human resources, insufficient financial resources, etc. Therefore, the PDIL focuses on the strengthening local authorities to help them play an active role in decentralization, rather than on supporting the decentralization process itself.
E. Alternatives considered and reasons for rejection
54. Other alternatives were considered for Bank intervention. Given the fairly weak institutional set-up of the urban sector, at both central and local levels, as noted in the 2004 ESW, it was agreed that budget support, and sector-wide and Community Driven Development (CDD) approaches would not be appropriate at this stage. The following options were rejected as ill-adapted to fulfill project objectives:
14 e Budget support was not selected because the implementation mechanisms in the urban sector and the inter-communal institutions were not in place or needed hrther strengthening before budget support would be effective in Niger;
e A sector-wide approach in cooperation with the AFD and the Government was rejected because the AFD operation was already approved with parallel financing and no significant amount of additional financing was expected from the Government;
e A CDD-type project would not enable the development of an urban program, based on the programming and management tools implemented during the PRIU, at a level appropriate for the largest investments. The needs for revenue- generating investments and to some degree for inter-communal infrastructure make CDD an inappropriate instrument in this case; and
e A more pragmatic approach, focusing on targeted capacity building and community-based investments, appears more likely to succeed in improving the living conditions ofthe poor in the short to medium-term.
111. IMPLEMENTATION
A. Partnership arrangements
55. Partnership built with the AFD for urban programs under the PRIU has been confirmed for this project. Two financing agreements have already been signed by AFD with the Government in April 2005 (Urban and Municipal Development Project - PADUM and Capacity Building Project for the Urban Community of Niamey - PARCCUN) and are also supported by the French cooperation (Ministry of Foreign Affairs) and the AIMF (Association Internationale des Maires Francophones). This €12.5 million financing will specifically target the cities of Niamey and Maradi through capacity building and investment programs. The investment program specifically focuses on Niamey (Katako market, public lighting and urban roads). The project takes into consideration and complements the activities financed by AFD.
56. Other partners, such as GTZ, are also active in supporting the decentralization process, with a particular focus on capacity building. The project will complement these programs in targeting the management oflocal public investments.
57. Finally, the project will also take advantage of the support to local SME development, through the EU-financed PARCCUN project under EDF 9.
B. Institutional and implementation arrangements
58. The project will be implemented by the National Coordination Bureau (BNC), the project coordinating unit within and under the responsibility of the Office of the Prime Minister. The responsibilities are outlined below.
15 Role of the Government
59. The Government is responsible for carrying out the decentralization policy defined in the Decentralization Law of June 11, 2002, as well as other measures that will guarantee the functioning of the BNC and facilitate project implementation. A Steering Committee (SC) has been established to oversee project preparation, and is composed ofrepresentatives ofthe Office ofthe Prime Minister, the Ministry ofUrban Affairs, Housing and Land Registry, the Ministry of Interior and Decentralization, the Ministry of Economy and Finance, the Urban Communities of Niamey (CUN) and Maradi (CUM), and the municipality ofDosso. The SC will be maintained for project implementation and its mandate has been renewed for the entire implementation period. The composition ofthe SC has been expanded to allow the representation ofall targeted municipalities. The role of the SC will consist of providing overall strategic guidance, overseeing project implementation, reinforcing intersectoral coordination, approving work programs and annual budgets, and reviewing implementation and audit reports.
Role of the National Coordination Bureau (BNC)
60. The National Coordination Bureau (BNC) is currently coordinating project preparation. It has been confirmed for project implementation and its mandate has been renewed for the entire implementation period. It will plan project activities and implement them either directly or though other selected partners (by delegation or outsourcing). Its role will be to ensure overall project coordination including monitoring, reporting, and evaluation. It will report to the SC and to IDA at least once every quarter or more if needed. The BNC will also be directly responsible for the fiduciary aspects ofthe project, for preparing the annual program in consultation with the urban communities and municipalities, the quarterly implementation reports, external audits, and for liaising with IDA and other development partners. The BNC's key staff have been hired during project preparation and for the purpose of the project include: a coordinator, a capacity building specialist, an infrastructure specialist, a procurement specialist, and an administrative and financial officer assisted by an accountant. The coordinator, the fiduciary positions and the procurement position are to be shared between the project and the upcoming PAPST, also to be implemented by the BNC.
61. In addition to the overall project implementation, the BNC will be responsible for the implementation of Component A (capacity building) and Component C (support to implementation, monitoring and evaluation), Studies and technical assistance under Components A and C will be contracted out to consultants, with responsibility for technical oversight within the relevant ministries or entities, so as to avoid overextension ofBNC capacities. In particular: (i)sub-component A.2 (support to central government entities) will be implemented by the BNC in close collaboration with the Ministry of Urban Affairs, Housing and Land Registry. Sub- component A.3 (support to private sector) will be implemented in close cooperation with the Public Works Agency ofNiger (Agence Nige'rienne de Travaux d 'Inte'rgt Public - NIGETIP) for preparation and implementation ofthe various training programs for local private consultants and contractors included in the project.
16 Role of municipalities
62. The three cities targeted by the project will play a major role in the implementation of Component B (municipal investments for the cities of Niamey, Maradi and Dosso) in terms of programming, implementing, managing, and maintaining investments. Contractual agreements (Contrats de ViZZe) will be signed between the BNC and the following local authorities: (i)for Niamey: the municipalities ofNiamey I,Niamey 11, Niamey 111, Niamey IV and Niamey V; (ii) for Maradi: the Urban Community of Maradi (CUM), representing the three municipalities of Maradi; and (iii)for Dosso: the municipality of Dosso. These contracts will be approved by the SC given their multi-sectoral contents. They will detail the agreements reached on the investment and capacity building programs, as well as the efforts by the municipalities to improve their overall management. Given the low technical capacities of these local authorities, especially for investment program implementation, a specific technical assistance program will be created to focus on procurement activities and oversight, aimed at ensuring efficiency, transparency, and enhancing local governance.
63. In addition, a graduated approach has been adopted to cope with the risks associated with procurement activities. During the first half of project implementation (first 2 years), the local authorities will be responsible for procurement up to a ceiling, determined on the basis of the works contract, ofUS$250,000 for Niamey and Maradi, and US$150,000 for Dosso. Operations above these ceilings will be procured through NIGETIP, the sole local institution with adequate technical capacity identified during project preparation. NIGETIP will be strengthened prior to project effectiveness, as per the recommendations of the 2007 assessment study of the agency (financed under PPF), Operational arrangements for an increase ofthese ceilings or a transfer of procurement activities to municipalities, with adequate procurement capacity, will be considered at mid-term review for possible implementation during the second half of project implementation.
C. Monitoring and evaluation of outcomes/results
64. The project design includes the definition of a set of detailed indicators to effectively measure the outcome and results of the project. These indicators and project monitoring and evaluation arrangements are detailed in Annex 3.
65. Baseline data. The results framework has been discussed during appraisal and the baseline data has been established on the basis of information collected during the feasibility studies and by the BNC. The monitoring and evaluation (M&E) framework will be supplemented by the monitoring of project implementation performance on procurement and disbursement. The BNC will be responsible for: (i)indicators related to capacity building (Component A) to be updated on a quarterly basis; and (ii)physical indicators related to works (Component B) to be updated at the end of each phase of works or annually. The Bank will conduct supervision missions at least twice a year and review indicators during each supervision mission.
66. Monitoring arrangements. The M&E system, as detailed in Annex 3, clarifies the process towards achieving the project development objectives (PDO), as well as the specific objectives of each component. The BNC will be responsible for reporting to SC and IDA on a
17 quarterly basis. In addition, the project will finance: (i)technical audits of the infrastructure financed through the project to provide additional input to the measurement of project impacts; (ii)monitoring and evaluation activities to be carried out by the BNC; and (iii)short tern assistance at mid-tern and closing ofthe project for economic and social impact evaluation.
D. Sustainability
67. The project alone will not constitute and answer to sustainability issues in the urban sector. However, it will help improve the current situation through: (i)overall improvement of urban management capacity and dissemination of appropriate tools and mechanisms; (ii) improved operation and maintenance of municipal assets; and (iii)development of a strategic framework for decentralized urban development.
68. Improved municipal and urban managerial capacity. This key objective is the rationale behind Component A, which will cover the main aspects of programming and management of municipal investments. This is supported by the introduction of urban programming tools and contractual arrangements (city contracts) that will improve municipal management in local governmental programming, implementation and maintenance of urban services and infrastructure. The use of a simple investment concept, design, and decision process is easily replicable: the project will focus on basis infrastructure investments that will be implemented through labor-intensive techniques, at low-cost. The methodology followed for the selection and implementation of investments will be documented and disseminated in other areas of the country.
69. Improved operation and maintenance of municipal assets. Increased allocation of revenues for operations and maintenance (O&M) of municipal infrastructure will ensure the development of a culture of maintenance. The expected rise of local revenues as a result of better financial management, improved revenue collection and predictable transfers should ensure that committed allocation of funds for O&M in city contracts is fulfilled. Compliance with the allocation and use of funds for maintenance will determine eligibility for further investment programs. Participatory planning and participation of local operators in O&M contracts should ensure a sense oflocal ownership.
70. Framework for decentralized urban development. The project will contribute to the definition of a framework for implementing decentralized urban development interventions including financial transfers and mechanism to access those funds. There is a strong demand from local governments and commitment from the national Government to move towards sustainable and fair financing mechanisms for local service delivery with associated institutional and resources support.
18 E. Critical risks and possible controversial aspects
7 1. The following risks have been identified during project preparation.
Risk Mitigation measures Risk rating Responsibilities ofgovernment - The project design is simple and specifies H agencies at national and local responsibility for each planned operation. levels ofgovernment are not - Support to government and local stakeholders clearly defined and may delay will be provided under the project. project implementation. - Preparation ofdraft laws, decrees and regulations is included in the project. - The SC will handle quarterly project monitoring and will cope with inter-sectoral coordination. Level ofdecentralization - Technical assistance, financed under the H remains limited; the local project, will be provided for the targeted cities. authorities’ human, technical - Consultative committees composed of and financial capacities are technical staff from both municipal and weak. decentralized government services have been established in each city for the purpose of assisting the municipal council on project implementation. - Municipalities’ financial contribution is limited to maintenance. Specific measures are also planned under component A to increase municipal revenues. Local contractors lack sufficient - The project will provide careful supervision of financial and operational bidding processes and qualifications capacity to execute quality and requirements. timely works. - Training courses (EU-financed) are on-going and will also be supported through the PAPST. - Additional training courses will be financed under the project. Local authorities lack - A procurement specialist has been recruited by knowledge ofprocurement BNC. procedures. - Specific technical assistance and training will be provided to local authorities regarding procurement. - Graduated approach will be taken for delegation ofprocurement activities to local authorities.
19 Important fiduciary and local - The capacity ofall local authority has been S governance issues may occur at reviewed and responsibility for procurement has Local Government level been given accordingly. - For project activity at local level, initial procurement responsibilities are limited and T.A is provided. - Financial management remains with BNC and adequate staffing is provided. Overall risk rating H
Risk rating: High risk (H); Substantial risk (S); Modest risk (M); Low or Negligible risk (N).
F. Loadcredit conditions and covenants
72. Agreements reached and implemented:
Establishment ofupdated SC; Establishment ofBNC as implementing unit; Recruitment ofthe Infrastructure Specialist and the Capacity Building Specialist at the BNC, satisfactory to IDA; Appointment ofa Chief Financial Officer at BNC, satisfactory to IDA; Appointment ofan Accountant at BNC, satisfactory to IDA; Appointment of a Procurement Specialist at BNC, satisfactory to IDA; Appointment ofthe head ofthe technical department at CUM; Delegation from Maradi I,I1 and I11 to CUMfor project implementation and recruitment oftechnical director at CUM; Establishment ofTechnical Consultative Committees in Niamey, Maradi and Dosso.
73. Conditions ofNegotiations: None.
74. Conditions of effectiveness:
(i) The Recipient has adopted a Project Implementation Manual in form and substance satisfactory to the Association; (ii) The Recipient has established a computerized information system for the financial management ofthe Project (including software customization, adoption ofthe Project Manual ofFinancial, Accounting and Administrative Procedures in form and substance satisfactory to the Association, training and short term assistance), in a manner satisfactory to the Association; and (iii) The Recipient has appointed a Project Coordinator with terms ofreference, qualifications and experience satisfactory to the Association.
75. Covenants applicable to project implementation. The standard clauses described in the financing agreement and the General Conditions are applicable. The following additional clauses will be added:
20 (i) The Municipal Contracts for Niamey, Maradi and Dosso as well as the contract management agreements with NIGETIP will be submitted to IDA for approval; (ii) The Government will prepare for and discuss at mid-term review; (a) A draft law on public contract management and delegation (maitrise d ’ouvrage publique); (b) A global framework for providing assistance to local authorities; (c) A mechanism for mobilizing and transferring financial resources for municipalities; and ’ (d) An assessment ofprocurement capabilities ofthe selected municipalities. (iii) The BNC will appoint, within three months after Effectiveness, the external auditor whose terms ofreference, qualification and experience are acceptable to IDA (launched, jointly with PAPST).
IV. APPRAISAL SUMMARY
A. Economic and financial analysis
76. An economic analysis was carried out for: (i)the inter-communal road in Niamey and a sample of secondary roads in the three cities; and (ii)the program of income-generating investments in Maradi and Dosso including markets and truck terminals. These investments account for about US$8.66 million, or about 72% of the total investment program identified. The economic analysis is based on the comparison between the “before project” and “after project” costs and benefits for each investment. The net present value (NPV), at 12 percent discount rate, and the Economic Rate of Return (ERR) are presented in the table below. The detailed analysis is presented in Annex 9.
77. Most of the other investments (drainage works, standpipes, social centers, schools, latrines, etc.) included in the project bring economic advantages that consist of social, health and environmental benefits that are not easily quantified. Some key impacts identified include improved health and reduced medical costs, especially in the low-income settlements; increased productivity arising from reduced flooding and avoided economic damages to economic property; improvement in the quality of life through improved living conditions and environment; creation of employment opportunities; and decreased vehicle maintenance and
21 transport costs resulting from road improvements and the shortage in the maximum distance from which public passenger transport may be accessed.
B. Technical
78. The proposed technical options selected during project preparation take into account the needs expressed by the municipalities and the list of priorities for each city. Technical designs will privilege efficiency and accepted levels of services by the users. As a result, the selected works focus on the highest priorities acceptable within a given envelope, e.g. improving the situation observed on the most critical points in terms ofroads and drainage, rather than on large and costly reconstruction operations.
79. The works to be financed under the project are expected to be of standard complexity. Simple design and labor-intensive methods accessible to local SMEs will be favored when possible. Adequate procurement procedures will be described in the implementation manual and specific manuals prepared for the municipalities. Capacity building activities for local consultants, contractors and municipalities planned under the project are in line with the requirements for the investment component. The most complex and expensive investments will be delegated to NIGETIP as per an agreement to be signed by the municipalities. NIGETIP will benefit from specific capacity strengthening programs.
C. Fiduciary
Financial Management and disbursement responsibilities
80. A financial management capacity assessment ofthe BNC was carried out by IDA in June and July, 2007 and a follow-up was done during the appraisal mission in January, 2008. The BNC recently hired the key financial management (FM) staff - Chief Financial Officer and Accountant - both with previous experience in IDA FM procedures. The FM procedures manual and simplified software are in place, and are being updated. The Accountant keeps books ofthe Project Preparation Facility (PPF Q5440-NIR dated August 21, 2006). IDA concluded that the financial management capacity of BNC meets the IDA minimum requirements under OP/BP10.02, but needs to be strengthened by being provided with a FM procedures manual ' associated with an integrated computerized financial management system. Related terms of reference have been agreed to that end. The newly recruited CFO is well trained in the manual, accounting software and IDA financial management and disbursement procedures for projects. The BNC will manage a designated account opened in a commercial bank in Niamey. These arrangements will enable the BNC to prepare annual financial statements to be audited by an independent firm acceptable to IDA, to produce Interim Un-Audited Financial Reports (IFRs), and to safeguard the project assets and resources.
8 1. At the level of each municipality and Communautc!, there are harmonized and simplified public accounting and internal control systems in place. The CUM and CUN have experienced accountants and relevant FM software in place. The municipalities and their respective Communautc!s will not be in charge of cash management (funds flow) and related accounting and reporting ofthe PDIL because of slowness ofpayment process and cash constraints at the urban
22 and local agencies ofthe Public Treasury. However, they will be involved in budget preparation and asset management, including procurement ofthe project.
82. The Financial Controller in the Office of the Prime Minister, the Inspector General of Services ofthe Ministry of Territorial Planning and Community Development (MTPCD), as well as the Inspection General of Finance (IGF) would maintain the right to intervene in PDIL’s fiduciary management at the level of the BNC. But an external private auditor should be requested at the end ofeach fiscal year to certify the project annual financial statements because ofthe weak capacity ofthe General Auditor’s Office (Cow des Comptes).
Procurement
83, The overall coordination of procurement activities and procurement for Components A and C will be handled by the BNC. Procurement activities for Component B will be handled by the municipalities and NIGETIP. IDA carried out an assessment of BNC and NIGETIP project procurement capacity in June 2007 and February 2008, respectively. The assessment reviewed the organizational structure for implementing the project and the interaction between project’s procurement staff and the various entities involved in procurement (municipalities, NIGETIP, relevant central units). As a result ofthat assessment:
a) A procurement specialist acceptable to IDA has been recruited by the BNC during project preparation;
b) The assessment of local procurement capacity carried out during project preparation led to the following recommendations: (9 The delegation of procurement responsibility to local authority for component B can be foreseen only on a limited basis, up to a works’ contract ceiling of US$250,000 for Niamey and Maradi; and US$150,000 for Dosso.
(ii) The municipalities of Niamey and Dosso and the CUM will add a procurement specialist to their staff, under the responsibility of the General Secretary, with responsibilities for: (i)ensuring the quality of procurement activities; (ii)archiving procurement documentation; and (iii) ensuring the administration of internal procurement commissions (bid opening, technical analysis).
(iii) The preparation of a Manual of Local Government Procurement Procedures (MPPM) for each local government that does not have one (or a revision in the case of CUM and Niamey V) to: (i)ensure conformity with the 2002 Procurement Code (Code des Marchbs Publics) and the Bank’s 2004 Guidelines on international competitive bidding procedures (updated in 2006); and (iii)introduce the Technical Commission for Bids Evaluation (CTEO) and Contract Award and Bid Opening Commission (COA). The COA, in charge of supervision and monitoring of procurement activities will be chaired by the Mayor or his delegate, and
23 will include at least one member of the Municipal Council, the Technical Department and the Financial Department.
The content ofArrM 1 13/CA~PM/2006detailing the list and attribution of ad-hoc Commissions for the evaluation and award of bids, especially the participation of the private sector into bid evaluations, is not applicable.
Technical assistance will be provided by the BNC to municipalities regarding: (i)introduction of the position of procurement specialist; and (ii)preparation ofthe MPPM for local governments.
Pending adequate operations at the General Directorate for Procurement (Direction Gbnbrale de la Commission des Marchbs Publics - DGCMP), the BNC will ensure prior review of the procurement activities by the municipalities.
Bank review will be done as described in the Financial Agreement.
Annual audits ofmunicipalities' procurement activities and NIGETIP will be handled by the National Procurement Regulatory Agency (Agence de Rbgulation des Marchbs Publics - ARMP) as per an agreement to be signed with the BNC.
To ensure adequate implementation of most complex operations under Component B - Investments, especially operations above the ceiling for works of US$250,000 for Niamey and Maradi, and US$150,000 for DOSSO,the local governments will contract out to NIGETIP as a delegated contract management agency. NIGETIP has been selected for the implementation of large and complex investments due to the lack of experience of the municipalities and the CUM. The rationale for single- source contracting with NIGETIP is the unique expertise at the local level and the reasonable costs (fees at about 5 percent). A competitive selection process would not attract foreign expertise with similar experience at similar costs. The Manual of Procedures ofNIGETIP has been reviewed during project preparation and was found acceptable to IDA. It will be updated prior to the signature of the first delegated management contract with NIGETIP to include the 2004 Guidelines, updated 2006.
D. Social
84. Key social issues relevant to the project objectives. The project is expected to deliver significant social benefits by improving the living and environmental conditions of low-income communities in Niamey, Maradi, and DOSSO,which have a poor and limited infrastructure base to accommodate the needs of their fast growing populations. Further, by improving living and sanitary conditions and services in poor areas and slums and reducing flooding, the project will also address human health and social development issues. The potentially negative social impacts of activities carried out under the project (such as temporary resettlement ofcommercial
24 activities for the markets in Maradi and Dosso) are limited and site-specific typical of Category B projects.
85. Participatory approach, partnership with civil society and NGOs. Project ownership has been regularly integrated as part ofthe project preparation methodology. Active participation of the population and the local governments was sought for: (i)the diagnosis ofthe current situation at municipal level; (ii)the selection ofthe investment programs and the level ofservices for each specific operation; and (iii)the selection of activities carried out under the project, especially for water stand pipes, and their maintenance. The preparation ofthe project also involved local and international NGOs working in urban development and sanitation, and other intervening partners such as line ministries to ensure consistency at the national level. Project implementation will further increase community cohesion by using the participatory mechanism of the development committees created during the project preparation process.
86. Social impact and gender. The consultative and participatory mechanisms already in place will also help ensure that financed activities are provided and are of benefit to the entire community. The local development committees created during project preparation will ensure full participation of local communities in each of the three targeted cities. The project involved women, youth and marginalized groups in the planning process and in making key decisions. It will continue to ensure equal benefits to women, in particular through their participation in the development committees. Project works (drainage and road works, in particular) have been designed in a way that will generate local employment. A qualitative beneficiary impact assessment will be financed under the project (Component C) in preparation of the mid-term review and the closing ofthe project.
87. The main issues raised by the populations during project preparation were linked to: (i) the management ofwater stand pipes as managed by the Urban Water Supply Private Operating Company (Socikte! d ’Exploitation des Eawc du Niger - SEEN), and included a specific request for greater involvement of women’s groups in their management; (ii)the need for public latrines; and (iii)issues related to maintenance of the drainage system through youth groups. These concerns were considered during project preparation. The BNC will monitor their implementation through qualitative assessments planned at mid-term and closing ofthe project.
E. Environment
88. This project is rated Category B for environmental purposes. It is designed to have beneficial impacts on the population in terms of better service delivery and improved living conditions. Given the programmatic nature and participatory approach of the project, the investment program was finalized during appraisal and the environmental and social impacts will only be known when the technical studies are available. An Environmental and Social Management Framework (ESMF) and a Resettlement Policy Framework (RPF.) were prepared by the Government. The final ESMF and RPF were disclosed in-country on August 6,2007 and at the Bank’s Infoshop on September 5, 2007. An additional training session will be organized for municipalities, NIGETIP and BNC prior to effectiveness. Annex 10 details the provisions made.
25 89. Environmental and social concerns have been integrated into the project design. As of today, no resettlement is expected, except temporary resettlement during the works pertaining to the markets in Dosso and Maradi. Impacts on the environment and on people were included as criteria for the selection of the municipal investments at an early stage of the process. Investments’ screening for environmental purposes has been handled by the BNC in collaboration with municipalities on the basis of a multi-criteria analysis and was reviewed by the Bank during project appraisal. This screening identified the nature and magnitude of the expected environmental and social impacts. It classifies the investments as Category A, B or C similar to the Bank’s classification system, triggering adjusted levels of treatment from an environment point ofview. Potential negative impacts will be mitigated during the design phase and mitigation measures will be included in the works contracts. If needed, environmental assessments (EAs) and resettlement action plans (RAPS) will be prepared as part of the preliminary design stage so that recommendations can be integrated into detailed design and bidding documents. Potential resettlement plans will be prepared according to Bank’s guidelines (OP/BP 4.12).
90. The BNC will be responsible for overall monitoring of the inclusion of the Environmental Management Plans (EMPs), which are part of the EAs, into the bidding documents. Supervision of the EMP and RAP implementation will also be the BNC’s responsibility as will be implementation of mitigation measures that cannot be implemented by the contractors. The engineer at the BNC will act as a focal point person for environmental and social management issues, and will liaise with the consultants and the contractors when needed. Prior to initiation of works, the contractors and the consultant in charge of supervision ofworks will confirm, with the municipality and the BNC the arrangements for monitoring the implementation of the environmental and social mitigation measures included in their contracts. Capacity building activities will be financed under Component A for BNC, SMEs, the GoN and local governments.
F. Safeguard policies
91. The two safeguards policies triggered by the project are: Environmental Assessment (OP/BP 4.01) and Involuntary Resettlement (OP/BP 4.12). All Environmental Assessments and Resettlement Plans will be handled as described above and according to the provisions made in the Environmental and Social Management Framework and the Resettlement Policy Framework. These safeguard instruments have been prepared in accordance with national environmental policies and the Bank’s environmental and social guidelines and safeguard policies. The draft ESMF and RPF were reviewed by the Bank and found acceptable before publication. The safeguard documents are available upon request from the BNC, in the three targeted municipalities and at the Environment Assessment Bureau (Bureau d ’Evaluation Environnementale et des Etudes d ’Impact - BEEEI).
26 Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OPBP 4.01) [XI [I Natural Habitats (OP/BP 4.04) [I [XI Pest Management (OP 4.09) [I [XI Physical Cultural Resources (OP/BP 4.1 1) [I [XI Involuntary Resettlement (OP/BP 4.12) [XI [I Indigenous Peoples (OP/BP 4.10) [I [XI Forests (OP/BP 4.36) [I [XI Safety ofDams (OP/BP 4.37) [I [XI Projects in Disputed Areas (OP/BP 7.60)* [I [XI Projects on International Waterways (OP/BP 7.50) [I [XI
G. Policy Exceptions and Readiness
92. The project complies with all Bank policies and no exceptions are necessary. The procurement plan for the first 18 months of project implementation was reviewed at project appraisal and approved at negotiations.
* By supporting theproposedproject, the Bank does not intend to prejudice thefinal determination of the parties' claims on the disputed areas
27 Annex 1: Country and Sector or Program Background NIGER: Local Urban Infrastructure Development Project
Urbanization and economic growth
1. Of Niger’s fourteen million inhabitants, only slightly more than three million live in cities, making the country lightly urbanized in comparison to other countries in the region. Nonetheless, urban areas are growing rapidly. If the current trend in urban areas of 6.1 percent annual growth continues (as compared to a national growth rate of 3.4 percent with a fertility rate of eight children per woman), the urban population will double in 12 years. Niger will thus rapidly approach the nearly forty percent urbanization rates ofother counties in the region.
2. Cities in Niger already play a very important role in the creation of national wealth. A little less than one-fourth of the population generates approximately 45 percent of the country’s GDP (in the secondary and tertiary sectors, mining sector excluded). Economic growth and rural development would be stronger and more sustainable with the support of a national network of small- and medium-sized centers to strengthen urban-rural relationships and provide local outlets for the consumption or processing of agricultural products. Such centers would stabilize urban migration to the capital and encourage slowing of the birthrate, considering that fertility rates have been declining for urban and educated women. Urban-rural networks would also encourage private sector development in secondary cities, in turn driving investments and local development.
3. Urbanization has also occurred unevenly throughout the country. With nearly 675,000 inhabitants, Niamey, the capital, has more people than the seven other regional capitals combined. The other cities are relatively small (Zinder, the second largest, had only 170,000 inhabitants in 2001) with limited infrastructure and services, and as a consequence attract little local investments. Unless these secondary cities grow sufficiently to facilitate the existence of agricultural markets, they will remain relatively isolated from each other and from their surrounding rural areas.
Urban poverty
4. Cities create wealth, but they are not spared from poverty and social exclusion. In urban populations, 52 percent are considered poor and 26 percent are extremely poor. Generally, rural poverty is more extensive, with 67 percent of rural populations living below the poverty line. But in Niger, the statistics mask a wide disparity between pockets of extreme urban poverty - in which the quality oflife is probably inferior to that in rural areas - and high-income urban areas, mainly in Niamey, where a large part of the country’s wealth is created. Rapid population growth, extreme income disparity between neighbors and neighborhoods, and weakened urban social cohesion are factors of exclusion for an entire segment of the population - especially young people - that survives mainly on temporary jobs in the informal sector. If a policy of providing services to underserved residential areas is not implemented rapidly, urban violence is likely to increase in the next few years.
28 5. The pockets of urban poverty are concentrated in areas lacking infrastructure (such as roads and drainage) and basic utility services (water, sanitation, and electricity), which together constitute the main problem facing cities. In general, urban residential areas, including those whose inhabitants live above the poverty line, have limited access to utilities basic infrastructure. In 1998, only 36 percent of the urban population had electricity and only 27 percent of urban households had running water (with large disparities between Niamey and the other cities). In Niamey metropolitan area, CUN (Niamey I, 11, 111, IV and V) today, more than half of the households have electricity, but in Niamey V, only 39 percent is connected to the electrical grid. Water supply varies from city to city, with 35 percent of households connected in Niamey and only 25 percent in the other cities. UN-HABITAT rates Niger along with the bulk ofother sub- Saharan African cities as being “off-track” in the world-wide program to meet Millennium Development Goal 7, Target 11: “By 2020 to have achieved a significant improvement in the lives of at least 100 million slum dwellers”. In The State of the World Cities 2006/2007, UN- HABITAT also estimates that the share ofNiger’s urban population living in slums increases by 5.9 percent each year, growing from 96 percent in 1990 to 96.3 percent in 2005. According to this calculation, almost the entire urban population is living under very unhealthy and vulnerable conditions (UN-HABITAT 2006,41).
Low level of sector financing
6. Such extreme poverty is offen a consequence of very low levels of public investment urban infrastructure investment as compared to public investment in other sectors. For example, residential areas are seldom connected to core infrastructure networks, hampering access to basic infrastructure. In the past few years, public investment in rural areas has been more than 10 times that in urban areas. Less than 8 percent of the national investment budget has been dedicated to urban infrastructure, an amount that bears no relationship to the importance ofcities in the creation of national wealth. Extremely weak governmental tax collection capabilities (except in the capital) have prevented cities from offsetting this finding imbalance; local tax funds collected by the DGI (local taxes collected by national authorities) have not been transferred timely or fully to local governments, despite the decentralization policy implemented in recent years.
7. More than 80 percent of urban infrastructure investment was realized through external financing, with the balance of about 20 percent financed by the national government. The government invests about CFAF 6,500 per capita annually, compared to the average of CFAF 500 invested by the cities, including Niamey. IDA, through the PRIU, was by far the largest source of government funding in the urban sector from 1999 to 2003, funding nearly 60 percent oflocal infrastructure (US$ 4.7 million ofUS$ 8.8 million in 2002).
8. Municipal government investment in the urban sector comprises a negligible proportion ofthe total amount spent. In 2002, municipal investment equaled 0.6 percent ofthe government investment budget, and about 7 percent of national spending in the urban sector. Less than CFAF 500 per year per urban inhabitant is spent by local governments on infrastructure compared to CFAF 6,409 per urban inhabitant spent each year by central government. The municipalities’ urban spending represented 26.5 percent of Niamey’s investment budget, 3 1.8 percent in the other capitals, and 34.6 percent in the other municipalities in 2002. Maintenance
29 expenditures amounted to 14.8 percent ofNiamey’s operating budget, 5.3 percent in the case of the regional cities, and 7.5 percent in the other urban municipalities*.
Sector management and decentralization
9. The institutional management of the urban sector falls under the purview of the Ministry of Interior and Decentralization and the Ministry of Urban Affairs, Housing, and Land Registry. Associated ministries are in charge of providing urban infrastructure, including: transport and public works for roads, and ministries and institutions in charge of water and electricity provision. The Ministry of Urban Affairs is a young ministry created in 2002, which demonstrates, together with the drafting of the National Urban Development Strategy, demonstrated the political will to commit strongly to urban development.
10. Law 2002-0139 of June 11, 2002 specifies the fbndamental modalities of transfer of power to the regions, departments, and municipalities. This process involves the creation offour metropolitan areas (Niamey, Maradi, Tahoua, and Zinder) and 265 municipalities (including 52 urban municipalities and 213 rural municipalities) spread among 36 departments and 8 regions. However, the mechanism for the transfer of the very limited resources to municipalities is not in place. It is bound to take time, given the scope of the task at hand and the lack of financial resources. According to the sector study carried out in 2004 for the High Commission for Administrative Reform and Decentralization (HCRAD) about one third of these municipalities will face a difficult financial situation.
Niamey
11. In 2001, the city of Niamey was home to approximately 880,000 inhabitants, living on approximately 9,000 hectares. It is the political capital ofthe country and by far the largest city, representing nearly one third ofthe country’s urban population. Commercial activities constitute the core of the city’s economy, making it the largest trading centre in the country, with about 60 percent of the country’s urban commercial activities and one third of the commercial establishments. Other activities include small industries, urban agriculture, breeding, and fishing. The share of people living below poverty (CFAF 75,000) in Naimey (42 percent) is less than across the urban sector nationally (52 percent).
12. The city is comprised of five municipalities (districts or communes) and an urban community. Four ofthe five districts are located on the North shore ofthe river Niger, while the 5th District lies on the South shore. The city recently benefited from important road investments and improvements in garbage collection, in connection with the Francophone Games (Jeux de la Francophonie). Earlier, some road and drainage works were implemented under the PRIU. Most of the works were not implemented within a coherent framework, the reference schemes being outdated. The distribution of investments is unbalanced, in particular between the left and right shores. Mobility is better on the left shore, because of the relatively well developed road network, while mobility is substantially reduced in Niamey V, with distances to taxis of more than 1,000 meters. The city also includes deep pockets of poverty, such as Gamkallk, on the
ESW, 2004. Loi portant transfert de compktences aux rkgions, dkpartements et communes
30 western side of the city, and other newly established settlements in Niamey V. The city also experiences severe flooding, causing significant damages to property and infrastructure and sometimes even death.
Maradi
13. The city of Maradi, administrative centre of the department and the region of the same name, is located approximately 650 km east of Niamey and in 50 km north of the border with Nigeria. In 2001, the population of Maradi was approximately 147,000 people. According to the addressing operation carried out in the city, the population in 2006 was close to 180,000 inhabitants. It is one of the most important cities of the country, presented sometimes as the "economic capital".
14. The city is administered by an urban community and three municipalities (Communes). Local development committees have been established in the districts to serve as a liaison between the municipalities and the population. The participatory City Development Strategy (CDS), implemented in 2005, identified the main economic activities as trade, marked by the presence of important facilities, such as the central market. The city is at the crossroad of the regions of Tahoua, Zinder, Diffa, and Agadez, and the border zones of Nigeria. Trade is comprised mainly ofmanufactured goods and farm products.
15. The area ofexchange ofthe agro-pastoral products extends to Niamey and the large cities ofneighboring Nigeria. Studies carried out for the CDS found that approximately 66 percent of the population is living below the poverty threshold (CFAF 75,000) (considerably higher than 52 percent across the urban sector nationwide, 58 percent for secondary cities, and 42 percent for Niamey). Poverty is also visible in the quality of the building structures, land occupancy, and the level of access to the urban services. Density is particularly high in the central city neighborhoods ofBagalam, Mokoyo, Yandaka, Limantchi, and Maradaoua, mostly located in the Maradi 2. Here, living conditions are very difficult, especially in terms of access to potable water and sanitation, with many people suffering from flooding during the rainy season.
Dosso
16. Located approximately 140 km southeast of Niamey, the municipality of Dosso had a population of approximately 43,000 people in 2001. The urban part of Dosso accounts for approximately 70 percent of a total population of about 80,000 inhabitants in 2006. Dosso is also the administrative centre of the department and of the region. Population density is relatively high in the city center, but quickly falls in the near-immediate transition to rural areas just outside the city center. The CDS implemented in 2005 identified the dominant economic activities as agriculture, and sedentary livestock breeding (an occupation of 70 to 90 percent of the population).
17. The city is also characterized by its privileged geographical location, which gives it an increasing economic role. As Maradi, Dosso is also at the crossroad oftrade between Niamey in Niger's west, the eastern part of the country, and Benin and Nigeria. There is unfortunately no data to estimate the volumes of economic activity, but the number ofheavy trucks parked along
31 the streets and the dynamism ofthe central market together indicates an impressive level of trade and commerce. Government also intends to build an inland port (‘port see”) in DOSSO,to take advantage ofits strategic position and ability to serve as an engine oflocal development.
18. Studies carried out for the CDS found that approximately 66 percent of the population lives below the poverty threshold (CFAF 75,000), against 42 percent in Niamey and 58 percent for secondary cities across the country. The studies also found insufficient urban services providing waste water purification, rainwater drainage (including flooding protection), mobility, and basic social services (education, health) in the city. Poor infrastructure conditions in the central market prevent it from fully realizing its economic role.
19. The importance of urban-rural connections is particularly true for Maradi and Dosso, which are regional centers of almost completely rural areas. Both cities are heavily influenced by their rural surroundings. With the exception of a few modest multi-storied buildings and a couple of major commercial streets in each city, these cities are very large, dense, semi-rural settlements. Many households keep farm animals (such as goats or cattle) within their compounds; and the peripheral areas of both towns are heavily agricultural, with market gardening especially prominent. The quality of life and level of income in these cities does not differ markedly from their surrounding areas. In a very poor country, the populations living in these regional towns are only marginally better off than their rural counterparts. This “ruralization” of the cities is a two-way dynamic: when there is drought or other factors that drive families from their land into the towns, they absorb the poverty oftheir surroundings. But as the cities develop into viable centers ofcommerce and small-scale industry, rural migrants add value to the agricultural economy, create improved markets for local produce, and enhance the productivity of all sectors of the economy. One of the threshold conditions necessary for this urban transformation to take place is that the local authorities need to improve basic urban services for their populations.1°
National Urban Strategy and local initiatives
20. In October 2004, the Government of Niger approved the National Urban Development Strategy that provides guidelines and sector policy framework in the context of the on-going decentralization and in line with the poverty reduction initiatives. This strategy is articulated around four strategic objectives (i)strengthening the institutional and regulatory framework for urban development; (ii)improving national and local governance and urban management; (iii) stimulating local economic development; and (iv) promoting urban social integration by improving the quality oflife in neighborhoods and contributing to reaching the MDGs.
21. To operationalize this effort, the cities of Maradi and of DOSSO,prepared City Development Strategies with the support of Cities Alliance, based on the urban programming tools developed under the PRIU. These CDS contributed to developing a framework for improved consultation, involving communities in the identification and planning processes for future urban interventions and developing better investment programming practices. The CDSs also better highlight the role ofcities in national development.
lo The whole section is adapted, for the most part from R. Stren’s evaluation report on Maradi and Dosso CDSs.
32 22. The National Urban Strategy and the CDS need now to be translated into concrete actions and programs. This requires the national government to allocate more funding to the urban sector from its owns funds and with the support to the donor community.
23. Balanced urban development that drives local private investment, as an essential source ofjobs and growth, is a prerequisite for sustainable growth. To reduce poverty, secondary cities and underserved neighborhoods of Niamey should be priority areas for public intervention in urban infrastructure and service provision. By focusing on pockets of urban poverty and on connecting these areas to the rest of cities through improved networks of roads and infrastructure, public investments will play a critical role in the social integration of the poorest communities in Niger. By strengthening urban-rural linkages through the construction ofmarket and access roads that facilitate the trade of agricultural products, investments in urban centers will contribute to local economic development including the rural areas.
24. The commitment from the Government in the urban sector is important for achieving macroeconomic development objectives and for reducing poverty, if the effectiveness of public spending in the sector is to be improved. This can be achieved through improved investment programming and the implementation of performance contractual arrangements between the government and the beneficiary cities.
25. Following this orientation and supporting decentralization efforts, the proposed project will align closely with the priorities of the National Urban Strategy and would target a limited number of cities and address the following issues: (i)limited institutional and implementation capacity in urban management; and (ii)insufficient provision ofinfrastructure.
26. Limited institutional and implementation capacity in urban management. The project will build and consolidate management capacities for programming, implementing and managing urban infrastructure and services at the local and national level, as well as strengthen the legal and institutional framework. This will include improving and disseminating urban management tools that were initiated under the PRIU (audits, municipal contractual arrangements, City development strategies, maintenance programs, etc.), and specific support to the private construction sector. The project will also support specific activities to improve overall management of local authorities and their ability to increase municipal revenues, in particular regarding local taxes collection.
27. Insufficient provision of infrastructure. The choice of investments proposed by the beneficiaries aims to increase access to basic services in the targeted cities, primarily in low- income settlements identified in the cities’ CDS. This includes construction or rehabilitation of roads likely to facilitate access to and from land-locked settlements, drainage works, water stand- posts, public latrines, and construction or renovation of local primary income-generating infrastructure that is key to local economic development, such as primary roads, food markets and truck terminals.
33 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies NIGER: Local Urban Infrastructure Development Project
Sector Issue Project Latest Summary of sector-related projects Supervision (PSR) Ratings (Bank-financed projects only)
Ip DO Urban Public Works and n/a n/a The main objectives ofthe project were: Employment (a) to create substantial new employment Project in urban areas; (b) to improve the Credit 2209-NIR) individual skills ofthe workers and the (closed in 1997) corporate competitiveness ofthe firms for sustained employment; (c) to demonstrate the feasibility oflabor-intensive projects; (d) to review existing public works programs and recast them. Urban Urban S S The development objectives were (a) to Infrastructure reduce poverty in urban areas by creating Rehabilitation employment; (b) to provide municipalities Project with skills to develop and manage their (Credit 2957-NIR) infrastructure; and (c) to promote local (closed in March engineering firms and contractors, labors- 2003) based methods and local materials. Urban Water Water Sector S HS The objective ofthe project is to assist the Project Borrower in increasing sustainable and efficient access to improved potable water supply and sanitation services in urban and rural areas ofits territory. Other developmc it agencies Agency Project Sector Project Description French Support ofUrban Urban The project targets primarily Maradi and Development and Municipal secondarily Niamey and Baleyara. Agency (AFD) Development Project (PADUM) (€9 14,000) French support to C.U. of Urban The project supports the Communautd Development Niamey Urbaine de Niamey (CUN) and its five Agency (AFD) (PARCCUN) municbalities. French TaYda Masu Nema Capacity Building The project aims at strengthening local Development (TMN) capacity for fighting poverty. Agency (AFD) (€1.5 million)
S: Satisfactory; HS: Highly Satisfactory; da: not available
34 Annex 3: Results Framework and Monitoring NIGER: Local Urban Infrastructure Development Project Results Framework
I PDO In Use of Project Outcome Information
Increased and sustained Additional population in targeted areas To assess the impact of access of the urban benefiting from (i)all-year access to infrastructure upgrading population, particularly those transportation, (ii)protection from schemes on the living living in low-income periodic flooding, and (iii)access to water conditions ofthe urban poor settlements, to basic supply and sanitation. infrastructure and services. Additional revenues (fees) collected from To assess the project imp- market places and truck terminals in act on municipal revenues Maradi and Dosso. Intermediate Outcome Indicators Use of Intermediate Outcome Monitoring Annual budget allocation and expenditure on routine road and drainage maintenance within defined range (percent of total Component A annual budget) in Niamey, Maradi, and Strengthened capacity and To monitor the Dosso. accountability of local municipalities’ commitment governments to plan, Length ofthe drainage network benefiting to maintaining infrastructure implement, and maintain from routine maintenance works in investments infrastructures and services Niamey, Dosso and Maradi Length ofthe road network benefiting from routine maintenance works in Niamey, Dosso and Maradi Additional kilometers of roadway To assess the project impact passable by standard vehicles in all on physical access to seasons in targeted areas. targeted areas To assess the project impact Component B Length ofnewly builthehabilitated on people’s environmental Improved access to drainage works in targeted areas conditions within targeted infrastructure and services in areas the cities of Niamey, Maradi, Number of standposts created or To assess the project impact and Dosso rehabilitated in targeted areas on access to water supply Number of market stands improved and To assess the project impact park places created in Maradi and Dosso on commercial activities truck terminals
35
m 9
1 f + f i
I f i I i I E i t t f f C 0 .I c,
.Ia h $
00 m Annex 4: Detailed Project Description NIGER: Local Urban Infrastructure Development Project
Component A - Capacity Building (estimated cost: US$1.96 million)
1. The focus of this component is to build and consolidate management capacities for programming, implementing, and managing urban infrastructure and services. The component includes: (i) support to local authorities in the cities that are beneficiaries of the project: the Urban Community of Niamey (CUN), the Urban Community of Maradi (CUM), and the municipalities of Niamey, DOSSO,and Maradi; (ii)support to government entities active in the area of urban management, in order to contribute to national efforts aimed at strengthening the capacities of public stakeholders in the urban development sector beyond the cities targeted by the project; and (iii)support to the private sector, in particular local contractors and consulting firms involved in project implementation. Under the close supervision of the National Coordination Bureau (BNC), the Public Works Agency of Niger (NIGETIP) will provide technical assistance to communes for procurement (A.1.b) and for capacity building of the private sector (A.3). The other sub-components will be implemented directly by the BNC.
2. Sub-component A.I (estimated cost: US$ 1-07million) - Support to Local Authorities, with a view to implementing capacity building activities such as those set out below in order to benefit local stakeholders-consultants/local authorities, municipal and deconcentrated service providers, and managers of public facilities of beneficiary cities complementary to programs camed out with the support ofAFD. This includes:
(a) Capacity building for programming, implementation, and management ' of basic urban infrastructure and services:
Support to management of solid waste management in Maradi and Niamey and income-generating investments; Support to modernization ofincome-generating investments management, in particular for markets and truck terminals in Maradi, Dosso and Niamey; Training related to programming, execution, monitoring and evaluation, of projects and consideration ofenvironmental and social aspects; Training in municipal management and urban development including participation to workshops and study tours (based on annual program); Provision of tools for municipal workshops in Maradi and Niamey; Provision of computer for technical services in each urban commune.
(b) Enhancement ofprocurement capacity:
(i) Specific technical assistance in procurement for local (municipal or deconcentrated) service providers and NIGETP to support monitoring and supervision operations;
39 (ii) Preparation of simplified procurement guidelines and standard contracts forms for local institutions; (iii) Strengthening local governance through the preparation of anti-corruption action plans for local governments.
Support to preparation and actual implementation of maintenance programs for municipal infrastructure and equipment (markets, parking for commercial trucks, public latrines and standpipes, as well as buildings, roads and other infrastructure). Technical assistance in the preparation and execution of infrastructure and facilities maintenance programs.
Support to overall improvement ofmunicipal management by the local authorities and their ability to increase municipal revenue in accordance with the financial audits carried out in selected cities:
(i) Development or strengthening of a computerized accounting system, preparation of an accounting procedures manual (based on AFD PARCCUN manual), and provision of 4 computers for the accounting service in Dosso. This would facilitate revenue collection monitoring and reduction ofcollection delays; (ii) Promotion of the local government fiscal manual (prepared by AFD PARCCUN); (iii) Training in financial management, including budget preparation and execution (Niamey, Maradi, Dosso).
3. Special efforts will be dedicated to the need for better collection and management of taxes directly managed at the local level, like market fees, with the objective of strengthening their capacity to finance operation and maintenance of the investments. Once tested in the selected cities, the activities designed to increase municipal revenues could be extended in other cities by the central government agencies through other projects.
4. Sub-component A.2 (estimated cost US$O. 73 million) - Support to Central Government Entities, in order to strengthen central government institutions involved in urban development and decentralization. This includes:
(a) Improvement and dissemination of planning and programming tools, including those developed under the PRIU and used in the current project, in particular preparation of manuals and sample documents related to the preparation of urban, municipal and financial audits, city development contracts, city development strategies, simple urban planning documents and preparation of drainage master plans for Maradi and Dosso.
(b) Technical assistance aimed at strengthening the urban development and decentralization frameworks, including: (i)support to the finalization oflegal and institutional texts and (ii) definition of a national framework for public
40 intervention in the urban sector and of resource transfer mechanism to local governments.
(c) Support to programming and urban planning, including:
Elaboration and publication of guidelines to prepare urban, organizational and financial audits and city contracts, and a manual to prepare annual local investments programs (DUD). An updated manual will be prepared based on the first manual prepared in 2002 for the pilot urban audit of Dosso and on the experience gained from the preparation of the urban, organizational and financial audits for Maradi and Dosso (PDIL) and Niamey (AFD). This manual will take into account annual programming tools for local investments, and will be adopted by local authorities as an urban management tool. This methodological guide and the city contract model will be used in support of training modules for local elected and municipal and deconcentrated staff in Dosso, Maradi and Niamey.
Updating the urban schemes and the atlas of Dosso and Maradi and elaboration of new urban schemes and atlas for 10 urban communes (DUD). This activity will aim to update the numeric urban scheme and atlas of Dosso and Maradi prepared in 2002 on the basis of aerial photography but limited to the constructed perimeter of the city. It will develop mapping documents for 10 other urban communes. This includes strengthening the capacity of the DUD in numeric mapping and GIs, including acquisition ofgraphic software and GIS and associated training
Finalization ofthe urban simplified master plan (plan urbain de re'fe'rence) for Dosso (DUD). The diagnostic report to prepare the urban master plan has been financed by the IDA-supported Community Action Program. The project will finance the finalization ofthe urban master plan.
Elaboration of a drainage master plan for Maradi and Dosso (DAIU). This activity aims at updating the old master plan taking into account the extension zones and the urban evolution of the cities.
(d) Assistance in the preparation of the law on public project management and delegation, including preparation and publication of application by-laws. This activity aims at setting up the legal framework that will allow institutions other than NIGETIP to perform public project management and to clarify roles of actors in the provision of public infrastructures. Technical assistance to elaborate the law and its by-laws, to publish the adopted legal documents and to organize training for concerned actors will be provided.
(e) Support to the finalization of the Urban and Land Management Orientation Law (Loi d 'Orientation sur 1'Urbanisme et 1'Ame'nagement Foncier - LOUAF). The law was prepared with the support of IDA through the PRIU. The LOUAF was
41 adopted by the Government in April 2007 and the National Assembly on March 25, 2008. Technical assistance will be provided to DUD to update and finalize the four application by-laws of LOUAF, publish the legal documents (1,000 units), and disseminate them.
(0 Support to the decentralization process (DUD, DAW, DGAT/CL, HCME, DGF)
(i) Evaluation of the implementation of the Decentralization Law and proposal for amendments. Technical assistance to review texts and prepare amendments.
(ii) Edition of Local Government General Code (Code Ge'ne'ral des ColZectivite's Locales) (1000 units). Once reviewed and discussed, the updated code will be published.
(iii) Definition of a national framework for public intervention in the urban sector and of resource transfer mechanism to local governments. In the framework of the implementation of the National Urban Development Strategy and ofthe decentralization policy, the issues offinancial transfers and of financing of local investments are critical elements of the decentralization process. This activity will aim at detailing the framework and public intervention arrangements in local governments, with particular regard to financing investments and elaborating on the definition of sustainable mechanism for transferring resources to local governments.
(iv) Logistic support. Provision of computers for government departments (1 for each service: DUD, DAW, DGAT/CL, HCME, DGF).
(v) Training programs and workshops for national and decentralized urban development actors. The program will be prepared on an annual basis and submit to IDA for approval.
5. Sub-component A.3 (estimated cost US$O.ld million) - Support to the Private Sector in order to strengthen local contractors and consulting firms involved in project implementation. This sub-component is aimed at private sector capacity building in the areas ofpublic works and construction: consulting firms in charge of studies and supervision of works, and enterprises responsible for works execution. These activities will be carried out in close cooperation with ongoing activities financed under the European Development Fund (EDF). They will be carried out by the Ministry of Public Works' technical assistance, as well as the capacity building activities planned and financed under the Transport Sector Program Support Project (PAPST). For contractors, capacity building activities executed under the project will focus primarily on construction works, given that the public works sector has already been covered. Training modules will focus primarily on bids procurement and preparation, organization of works, internal oversight and supervision of works, and management of social and environmental impacts .
42 Component B - Municipal Investments (estimated cost: US$20.13 million)
Sub-Component B.1: City of Niamey (approximately US$12.89 million)
6. The alternatives are based on the results ofurban audits" conducted in the five communes in 2007. The results of the feasibility studies on improving living conditions in vulnerable districts of Niamey V have also been taken into account. These vulnerable districts were identified through a poverty survey conducted in 2004.'2
7. The studies conducted led to the following recommendations:
(a) Inter-communal Road Network (Niamey I, II, 111 and Iv) (US$3.6 million shared by the 4 communes)
e The operation consists of managing the approximately 9.25 kilometers of different sections of road traversing the four communes from East to West. This will shorten the maximum distance from which public passenger transport may be accessed from more than 1,000 meters to 400 meters in densely populated areas to the north of the city, as well as provide transportation service to numerous socio-educational and economic facilities (a large mosque, numerous schools, the large cattle market at Tourakou, and two markets in the district). It will therefore facilitate inter-district connections by offering an alternative to the Mali-Btro Boulevard, which is particularly congested at rush hour.
(b) Niamey I: (US$2.06 million, including section of the Inter-communal Road)
Operations identified include, in addition ofthe section ofthe inter-communal road:
(i) Market facilities (US$0.075 million): Operations continue in two markets in the district: (i) construction of the Recasement market; and (ii) construction of warehouses at the Yantala-bas market.
(ii) Schools (US$0.41 million): Interventions aim to enhance: (a) the study environment for approximately 600 students through the construction of 13 classrooms currently in thatched huts (four schools); (b) sanitary conditions for 479 students through the construction of two blocks of latrines (one school); and (c) the safety of 1,167 students through the construction offences in three schools.
(iii) Health (US$0.12 million): The construction and outfitting of a health center in the Lossogoungou district, with the aim of shortening the traveling distance by at least three kilometers for approximately 11,000
'I Urban Audits and Urban Reference Plan for the Urban Community ofNiamey, Final Report, October 2007. Financing: French Development Agency [Audits urbains et Plan Urbain de Rkfkrence de la Communautk urbaine de Niamey, Rapport dkfmitg Octobre 2007. Financement Agence Francaise de Dkveloppernent]. 12 Poverty Survey - Niamey's Commune V, Support Strategy in the Urban Sector, World Bank / Group Huit, June 2004 [Enquite Pauvretk - Niamey Commune V, Stratkgie d 'Appui au secteur urbain, Banque Mondiale / Groupe Huit. Juin 20041.
43 inhabitants of districts in the far west of the commune who need access to health care.
(iv) Culture - Sport - Leisure (US$0.085 million): This involves carrying out several improvements in two youth centers to make them more operational, in particular by constructing a multifunctional area where the youth ofthe district may practice different sports.
(e) Niamey 11 (US$2.91 million, including section of the Inter-communal Road)
Operations identified include, in addition ofthe section ofthe inter-communal road:
(9 Schools (US$0.41 million): Interventions aim to enhance: (a) the study environment for approximately 500 students through the construction of 11 classrooms currently in thatched huts (four schools); (b) sanitary conditions for 9,665 students through the construction ofblocks oflatrines in 19 schools; (c) the management ofwater supply in 17 schools for a total of approximately 8,300 students; and (d) the safety of 2,170 students through the construction offences in two schools.
(ii) Health (US$0.12 million): The construction and outfitting of a health center in the Dar es Salam district with the aim of shortening the traveling distance by at least 1 kilometer for inhabitants of the northern districts of the commune (approximately 19,000 inhabitants within a radius of one kilometer) who need access to health care.
(iii) Culture - Sport - Leisure (US$0.07 million): This involves the complete rehabilitation of a dilapidated youth center to make it more operational and thus help the young people of the northern districts of the commune gain access to the various services in the district.
(d) Niamey 111 (US$3.I3 million, including section of the Inter-communal Road)
Operations identified include, in addition ofthe section ofthe inter-communal road:
(i) Mobility - Drainage Works: (a) the development and partial rehabilitation of 1,945 ml ofa transit road serving the northern districts ofthe commune, as well as the development of a bypass road serving heavily populated districts (1,000 ml), for a cost of approximately US$1.24 million; and (b) the construction of 605 ml ofdrains to protect the population in the central part ofthe commune against flooding (US$0.37 million).
(ii) Schools (US$0.33 million): The goal ofinterventions is to enhance: (a) the study environment for approximately 600 students through the construction of 12 classrooms currently in thatched huts (five schools); (b) sanitary conditions for 7,900 students through the construction of 10
44 blocks of latrines to be allocated to six schools; and (c) the safety of2,145 students through the construction offences in two schools.
(e) Niamey IV (US$2.97 million, including section of the Inter-communal Road)
Operations identified include, in addition ofthe section ofthe inter-communal road:
Mobility - Drainage Works: (i)the development of two service roads for heavily populated districts (3,070 ml), costing approximately US$1.35 million; and (b) the construction of300 ml ofdrains in order to protect the population of low-income settlements against flooding (US$0.096 million).
Schools (US$0.45 million): The goal ofinterventions is to enhance: (a) the study environment for approximately 1,200 students through the construction ofnine classrooms currently in thatched huts (three schools); and (b) the safety of 3,600 students through the construction of fences in four schools.
Health (US$0.20 million): Construction and outfitting of a health center in the Aviation 2 district (including fencing a maternity facility on site) thereby shortening the traveling distance by at least two kilometers for inhabitants ofthe outlying district (approximately 42,000 inhabitants) who need access to health care.
Culture - Sport - Leisure (US$0.028 million): This involves the construction of a fence that will provide security for a library in a heavily populated district ofthe commune.
Administration (US$0.073 million): The works consist of the partial rehabilitation of a building that houses communal livestock services, which are particularly in demand because ofthe agro-pastoral activities at the edge ofthe commune. fl Niamey V (US$1.82 million)
Operations identified include:
(i) Mobility - Drainage Works (US$1.08 million): Interventions include the paving of two service roads (2,400 ml) serving heavily populated vulnerable districts, and enabling improved rainwater drainage.
(ii) Schools (US$0.24 million): The interventions aim to enhance: (a) the study environment for approximately 300 students through the construction of seven classrooms currently in thatched huts (five schools); (b) sanitary conditions for 2,700 students through the construction of five
45 blocks of latrines to be allocated to five schools; and (c) the safety of 750 students through the construction offences in two schools.
(iii) Water (US$0.028 million): The construction of three standpipes to serve the poor in certain sectors oflow-income settlements.
Sub-Component of B.2: City of Maradi (US$S. 00 million)
8. The alternatives are based on the results of urban auditsI3 conducted in 2007, as well as feasibility studies on market facilities and the improvement of living standards in vulnerable districts of the city. Those low-income settlements were identified through the City Development Strategy (CDS) prepared in 2005.14
Operations agreed on include:
(a) The Central Market of Maradi (US$2.15 million). This activity was highlighted in the CDS as a priority to strengthen the economic role of the city. A feasibility study was conducted to determine the main components of the improvements to be carried out. They include: (i)the connection to basic services (water, electricity, lighting, internal pedestrian paths, drainage, loading and unloading facilities); and (ii)the construction of warehouses. The construction of specialized shops is left to private initiative to take the form of a partnership, which the urban community will put in place. These elements are the result of discussions with the merchants, which concluded that there was a need to completely restructure the market so as to increase the number of booths from 1,900 to 3,600, thereby enabling the municipalities to collect more revenues.
(b) Truck terminals (US$0.79 million). This project is also one of the priorities highlighted in the CDS. It involves facilitating the transit conditions for 30 to 40 heavy goods vehicles that stay in the city for two to three nights, either carrying out customs operations or loadinghnloading merchandise. The provision of this service will eliminate the heavy loads now carried on major roads, which are a threat to safety and at the same time contribute to premature degradation of the roadway when they are parked in non-parking zones. The site and the improvements to be carried out were determined in collaboration with the beneficiaries. An agreement was reached with them on the rates to be applied. The works contemplated include: (i)the provision ofbasic services (water, electricity, lighting, internal pedestrian paths, drainage, platforms); and (ii)construction of facilities for management purposes (administration, fencing, and entry gate). The construction of specialized shops is left to private initiative, to take the form of a partnership, which the urban community will put in place.
(c) Administration (US$O. 14 million): The works consist of the construction/ upgrading ofa small building to host the technical services ofthe Urban Community. l3 Urban Audits and Urban Reference Plan for the Urban Community of Maradi. Project Preparation Facility. [Audits urbains et Plan Urbain de Rkfirence de la Communautk urbaine de Maradi. Financement Fonds de Prkparation du Projet]. 14‘‘ Development Strategy, Urban Management, and Combating Poverty-City of Maradi” [“Stratkgie de Dkveloppement, de gestion urbaine et de lutte contre la pauvretk, Ville de Maradi”].
46 (d) Improvement of living conditions in low-income settlements (US$1.91 million): The districts of Bagalam and Mokoyo (Commune 2), and Dan Goulbi, Limantchi, and Maradaoua (Commune 3), covering a total area of 156 hectares, with a population of approximately 47,000 inhabitants, with densities ranging from 180 to 420 inhabitants per hectare, were identified in the CDS studies as low-income settlements. They incorporate traditional areas situated in the heart ofthe city, which, over time, have become densely populated, and are very vulnerable. The feasibility studies pointed out that investments were purely local in scope and their findings were validated by the beneficiary populations, who decided upon the desired level of service from among several recommendations. In accordance with the principles used in the case of Niamey, the following recommendations were accepted:
- the construction of approximately 850 ml of inland traffic lanes between the Bagalam and Sabongari districts; - the reconstruction of 200 ml of drains in the Bagalam district, in order to protect the population against flooding; - the construction of five standpipes and three public latrines in the Bagalam, Mokoyo, Dan Goulbi, Limantchi, and Maradaoua districts, to improve sanitary conditions and facilitate access to water; and - the construction of 34 classrooms and 10 latrines in the schools of those vulnerable districts.
Sub-Component B.3: City of Dosso (US$2.24 million)
9. The alternatives are based on the results of urban auditsI5 conducted in 2007, as well as feasibility studies on market facilities and improvement of living standards in vulnerable districts of the city. Those vulnerable districts were identified through the CDS, which was prepared in 2005.16
Operations agreed on include:
(a) The Central Market (Marche‘ central) and the Small Market (Petit Marche? (US$0.75 million). The rehabilitation ofthe Central Market was highlighted in the CDS as a priority to strengthen the economic role ofthe city. This was confirmed during the project preparation phase. A feasibility study was conducted to determine the main components of the improvements to be carried out, as well as determine the need to extend the improvements to the Small Market located not far from the Central Market, so that it would be able to receive the activities displaced from the latter. They include: (i) improved basic services (water, lighting, internal pedestrian paths, and drainage) as well as the construction of warehouses at the Central Market; and (ii)the connection to basic services and construction of a butcher’s stall and additional warehouses at the Small
15 Urban Audit of the Commune of Dosso. Financing: Project Preparation Facility [Audit urbain de la’commune de Dosso. Financement Fonds de Prdparation du Projet]. 16 “Development Strategy, Urban Management and Combating Poverty-City of Dosso” [“Stratdgie de Ddveloppement, de gestion urbaine et de lutte contre la pauvretd, Ville de Dosso”].
47 Market. The construction of specialized shops is left to private initiative to take the form of a partnership, which the commune will put in place. These elements are the result of discussions held with the merchants and should result in an increase in the number of booths from 807 to 1,240 which will, in turn, improve the revenues ofthe commune.
(b) Truck terminals (US$0.45 million). The investments are similar to those of Maradi.
(c) Improvement of living conditions in low-income settlements (US$O1.03 million): The district of Kouaratkgui, located in the heart of the city and covering a total area of 137 hectares, with a population of approximately 14,000 inhabitants and an average density of 100 inhabitants per hectare, relatively higher in former inner-city communities, was identified in the CDS studies as a district where people live in conditions of extreme vulnerability.
The feasibility study pointed out that investments were purely local in scope and its findings have been validated by the beneficiary populations, who decided upon the level of desired service from among several recommendations. In accordance with the principles used in the case ofNiamey, the following recommendations were accepted:
- the construction of approximately 550 ml of inland traffic lanes in the district linked with a neighboring district; - the reconstruction of 1,100 ml ofdrains to protect the population against flooding; - the construction of standpipes and public latrines in the district in order to improve sanitary conditions and facilitate access to water.
Component C - Support to implementation, monitoring, and evaluation (US$2.16 million)
10. This component finances the cost of implementing and monitoring the Local Urban Infrastructure Development Project through the BNC:
BNC equipment (CFAF 62.5 million, approximately US$137,500): Purchase of a vehicle, office automation, and computer supplies; Contribution to BNC operating costs (CFAF 180 million per year, i.e. CFAF 720 million, approximately US$1.66 million): These expenses are also partly supported by the PAPST and cover the cost of personnel, office supplies and services, mission expenses, and miscellaneous expenses; Technical and financial audits (US$159,000): Under the agreement with the Bank, the BNC will conduct an annual financial audit (US$ 105,000 for four audits). During the appraisal mission, an auditor was being recruited. Two technical audits (for the mid-term review and for the closing of the project) will be conducted by an technical auditor to be recruited based on terms of reference to be submitted for IDA’Sno-objection (US$ 54,000); Provide support for monitoring and evaluation activities (US$116,000). This sub-component will allow for: (i)two economic and social impact assessment
48 missions by the PDIL in preparation for a mid-term review of the project and the closing of the project (est. US$53,000); and (ii)the funding of short-term consultants, where appropriate, (US$63,000); and (e) Information, education, and communication activities (IEC) under the project (US$85,000) based on four annual IEC campaigns (US$21,250 per year).
49 Annex 5: Project Costs
NIGER: Local Urban Infrastructure Development Project
Implementation Period: July 1,2008 to July 15,2012 Financing Plan Description of activities Local I Foreign I Total (US$ million)
Component A: Capacity building A. 1: Support to local authorities 0.42 0.65 1.07 A.2: Support to central government entities 0.42 0.30 0.73 A.3: Support to the private sector 0.00 0.16 0.16 TOTAL: COMPONENT A 0.85 1.11 1.96
Component B: Municipal investments in Niamey, Maradi and Dosso 0.00 0.00 0.00 B. 1: Niamey 9.32 3.57 12.89 B.2: Maradi 3.59 1.41 5.00 B.3: Dosso 1.59 0.65 2.24 TOTAL: COMPONENT B 14.49 5.63 20.13
Component C: Support to implementation, monitoring and evaluation (i)Investment costs for BNC 0.00 0.14 0.14 (ii)Operating costs for BNC 1.67 0.00 1.67 (iii)Technical and financial audits, monitoring and evaluation, IEC for the program, training 0.00 0.16 0.16 (iv) Support to monitoring and evaluation 0.08 0.03 0.12 (v) Information, Education and Communication 0.08 0.00 0.08 TOTAL: COMPONENT C 1.84 0.33 2.16
PPF Refinancing 0.00 0.90 0.90
TOTAL BASELINE COSTS 17.18 7.97 25.15 Physical Contingencies (8%) 1.10 0.51 1.61 Financial Contingencies (13%) 2.21 1.03 3.24 TOTA F THE P 9.51 0.0 Note: Figures have been rounded up, and may not add up exactly.
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I- i Annex 6: Implementation Arrangements NIGER: Local Urban Infrastructure Development Project
1. The project will be coordinated at the Prime Minister’s level, by an inter-ministerial Steering Committee (SC) and supported by a National Coordination Unit (BNC). The BNC will directly coordinate Component A, capacity building and Component Cy support to implementation, monitoring and evaluation. The beneficiary local governments will be primarily responsible for implementation of Component Bymunicipal investments in Niamey, Maradi and Dosso. They will receive support from NIGETIP for complex operations. Details are given below.
2. The SC was created on October 31, 2006, by ministerial Arre^te! to oversee project preparation. The SC is chaired by the infrastructure advisor ofthe Office of the Prime Minister assisted by the General Secretary ofthe MUHC. The SC is composed of - three representatives from the Ministry of Urban Affairs, Housing, and Land Registry: the Director of Urbanism, the Director of Sanitation and Urban Infrastructure, and the Director ofPrograms and Studies; - the Director of Local Governments, as representative of the Ministry of Interior and Decentralization; - the Director General ofFinancing and the Director General of Sector Programs ofthe Ministry ofEconomy and Finance; - the President ofthe Urban Community ofNiamey (CUN); - the President ofthe Urban Community ofMaradi (CUM); - the President ofthe Urban Commune ofDosso (CUD); and - the Director of the Decentralization and “Deconcentration” Department of the High Commissariat for State Modernization .
3. The current SC has been instrumental in project preparation and will be maintained for the purpose ofproject implementation. Its role will be to provide general strategic direction and oversight of project implementation, ensure communication and cooperation among stakeholders, approve work programs and budgets, and review progress and audit reports. In addition to the current members, the SC will also include the representatives ofall municipalities targeted by the project, i.e., the five municipalities ofNiamey, the three municipalities ofMaradi (directly or through CUM), and the municipality of Dosso. The reformed SC will need to be appointed by government decree prior to project effectiveness. It is expected that it will operate along the same modes as currently, on the basis ofquarterly meetings, and as often as needed.
4. The National Coordination Bureau (BNC), also established on October 31, 2006, is a follow-up of the same structure created in 2002 within the office of the Prime Minister, for the purpose of coordinating the former Bank-financed urban project (PRIU). The BNC reports to the SC and has been responsible for coordinating project preparation activities. These include monitoring studies financed by the PPF, coordinating stakeholder activities and relationships with IDA. The BNC’s coordination role is well established in the context ofthe PFUU and also in the preparation of the two City Development Strategies carried out in Maradi and Dosso. Because of its anchorage at the Prime Minister’s office and its demonstrated experience, the BNC has been well accepted by the various ministries and agencies involved with project
55 preparation. It is, in particular, in an ideal position to serve as a liaison between the various governmental departments and facilitate smooth project implementation. The BNC’s role will be to: (i)ensure overall project coordination, including monitoring, reporting, and evaluation; (ii) assume responsibility for the fiduciary aspects of the project, for preparing the annual program, in consultation with the urban communities and the municipalities, as well as the quarterly implementation reports, for coordinating external audits, and for liaising with IDA and other development partners; (iii)coordinate the capacity building programs (Component A); and (iv) provide technical advice to the authorities in charge of implementing investments (Component B). BNC’s key positions will include: a coordinator, an infrastructure specialist, a capacity building specialist, a procurement specialist, and a chief financial officer assisted by an accountant. It has been agreed that the three fiduciary positions could be shared between the PDIL and the upcoming PAPST, to reduce costs. Both the procurement specialist and chief financial officer will play a key role in supporting the local governments targeted by the project in the procurement, management, and monitoring ofproject investments.
Implementation of Component A
5. Component A will be implemented under BNC’s direct responsibility. The BNC’s capacity-building specialist will coordinate the component activities. Studies and technical assistance under this component will be contracted out to consultants, with responsibility for technical oversight within the relevant ministries or entities, so as to avoid overextension ofBNC capacities. Subcomponent A.2 will be implemented by the BNC in close collaboration with the Ministry of Urban Affairs, Housing, and Land Registry. Subcomponent A.3 will be contracted out to NIGETIP for preparation and implementation of the various training programs for local consultants and contractors.
Implementation of Component B
6. The five municipalities ofNiamey, the three municipalities and the Urban Community of Maradi, and the Urban Community of Dosso will be in charge of implementing Component By covering programming, implementation, operation and maintenance of investments. City Contracts (Contrats de Ville) detailing the agreed programs, will be signed between the local authorities and the BNC. These contractual agreements will be approved by the SC and the Bank.
7. Overall coordination of procurement activities will be overseen and ensured by a procurement specialist appointed by the BNC prior to project effectiveness. The procurement capacities of the municipalities will be gradually strengthened over the course of the project, through the capacity building program detailed under Component A.1. It is also expected that NIGETIP, which benefits from extensive experience from PRIU and other projects, will provide direct technical assistance to the municipalities in their efforts toward establishing procurement capacities (see Annex 8). NIGETIP will also be in charge ofprocurement activities for large and complex operations on behalf of local authorities through specific delegated management contracts (above US$250,000 for Niamey and Maradi and US$150,000 for Dosso).
56 8. The municipalities will handle the local investments in close collaboration with the community representatives of each settlement. In the case of Maradi, however, the municipalities of Maradi I, 11, and I11 already delegated their technical responsibilities to the Urban Community ofMaradi (CUM). The composition ofthis delegation has been clarified in a convention drawn between the various municipalities and the CUM. Prior to project implementation, the CUM has appointed a head of technical services with an appropriate engineering background. All local authorities will receive technical assistance to ensure an acceptable quality ofproject implementation at the local level.
9. To assist the municipal councils in their follow-up of project activities, Local Technical Consultative Committees, composed of technical staff of the urban communities and the municipalities, and the decentralized services of technical ministries, such as the Ministry of Urban Affairs, Housing, and Land Registry, will provide advice and recommendations for: (i) programming investments proposed by the technical services; (ii)technical studies; and (iii) modalities for the management, operation, and maintenance of works. In so doing, these committees will also provide coordination between operations programmed within the same municipal territory. These technical consultative committees are already operational and have been involved in programming investments of project Component B. During the course of implementation of works, technical sub-commissions will also be established to review the technical documents specific to each operation (feasibility studies, detailed engineering studies, technical evaluation ofbids, etc.) and prepare specific recommendations.
10. The BNC will provide continuous technical support to the five municipalities ofNiamey, the CUM, and the municipality of Dosso. An infrastructure specialist has been recruited by the BNC.
11. Overall financial responsibility for implementation of Component B will rest with the BNC, which will process all payments to the suppliers ofworks, goods and consultants financed under the project.
Implementation of Component c
12. Component C will be implemented directly by BNC. The activities will be coordinated within the BNC. Studies and technical assistance under this Component C will be contracted out to consultants, with the BNC retaining responsibility for technical oversight. Assistance will be sought from the relevant ministries or entities when needed, especially for monitoring, evaluation and IEC.
57 Annex 7: Financial Management and Disbursement Arrangements NIGER: Local Urban Infrastructure Development Project
Summary of the Financial Management Assessment
1. The financial management assessments were carried out in accordance with the Financial Management Practices Manual issued by the Financial Management Board on November 3, 2005. The objective of the assessments was to determine whether (i)the National Coordination Bureau, (ii)the municipality of DOSSO,(iii) the Urban Community of Maradi (CUM) with its three municipalities (I,I1 and 111), and (iv) the Urban Community ofNiamey (CUN) with its five municipalities (I,11, 111, IV and V) have acceptable financial management arrangements, which will ensure: (a) the finds are used only for the intended purposes in an efficient and economical way; (b) the preparation of accurate, reliable and timely periodic financial reports; and (c) safeguard the implementing entities’ assets. As the result ofthese assessments, the BNC will be the Budget Management and Accounting Center (BMAC) of the Local Urban Infrastructure Development Project (PDIL). With regard to its capacity, the BNC will process all the direct payments to the suppliers ofworks and goods delivered under the PDIL.
2. At the present time, the BNC is managing the Project Preparation Facility (PPF), with the support of an experienced financial management staff (Coordinator and Accountant) and has established a simplified financial management system accordingly. The Coordinator and the Accountant are familiar with the Bank’s financial management procedures. The assessment concluded the financial management (FM) arrangements in place at the BNC, as the main BMAC, meet the Bank’s minimum requirements under OPBP10.02 and are therefore adequate to provide, with reasonable assurance, accurate and timely information on the status ofthe PDIL as required by IDA. However, the BNC will take some measures to strengthen its financial management capacity prior to the credit effectiveness. In addition to the Coordinator and the Accountant, the BNC has recruited a Chief Financial Officer (CFO) who is well trained in the Bank’s FM procedures. At the level of each municipality and urban community, there are harmonized and simplified public accounting and internal control systems in place. The CUM and CUN have experienced accountants and relevant FM software in place The municipalities and their respective Urban Communities will not be in charge ofcash management (finds flow), and related accounting and reporting ofthe PDIL because of slowness ofpayment processes and cash constraints at the urban and local agencies of the Public Treasury. However, they will be involved in budget preparation and asset management, including procurement of the PDIL. Considering the existing FM arrangements, the overall residual control risk is considered moderate.
3. It is recommended that the following administrative, financial, and accounting arrangements be put in place in the BNC:
- Financial management activities, including management of the designated account opened in a commercial bank in Niamey, will be handled by the BNC. The coordinator of the PDIL who is the authorizer (“ordonnateur”) of expenditures for the project, will approve related commitment documents and invoices, and will authorize cash transactions in the project’s designated account located in Niamey.
58 - PDIL flow of funds and information are to remain separate from those of the public expenditure funds and the annual allocation of the project’s successive annual budget activity plans should be mentioned in the Niger Annual Budget (Loi de Finances). - Using its delegation of authority, the Direction Gknkrale des Financements (DGF) will authorize withdrawals from the loan account of PDIL located in Washington, DC in the name and on behalf ofthe Minister ofEconomy and Finance. - PDIL FM capacity is strengthened by a CFO already recruited and shared with PAPST, and who is well trained in the Bank’s disbursement and FM procedures. - The subsequent annual activity plans will be developed by the BNC, in close collaboration with the CUD, CUM, CUN and related municipalities; they will be submitted to the Bank for approval. - The existing FM procedures manual will be updated in conjunction with an appropriate customization ofnew accounting software. FM Staff ofthe BNC have to learn by doing the contents of the manual. The FM procedures manual will be produced to cover the PDIL’s needs, to document the detailed FM procedures, and to ensure a robust internal control arrangement, - The BNC will produce interim un-audited financial reports (IFRs) on a quarterly basis, and the annual financial statements as requested by the Bank. The accounting software (multi-sites, multi-projects and multi-currency) to be installed at the BNC level will provide these financial reports. - Asset management including procurement ofthe PDIL will be assigned to both BNC and municipalities. - The Financial Controller at the Prime Minister’s Office, the Inspector General ofServices of the Ministry of Territorial Planning and Community Development (MTPCD), as well as the Inspector General of Finance (IGF) would maintain the right to intervene in PDIL’s fiduciary management at the level ofthe BNC. - An external private auditor should be requested at the end of each fiscal year to certify PDIL annual financial statements.
Country Issues
4. A Public Expenditure Management and Financial Accountability Review (PEMFAR), including a Country Financial Accountability Assessment (CFAA) was carried out for Niger in November 2003. Its report was finalized in June 2004 and published by the Bank in December 2004 (No. 29752-NE). The report identifies a number of areas where additional steps need to be taken to strengthen existing institutions and/or accelerate the reform process. These include: (i) budget preparation and execution; (ii)computerized financial information systems; (iii)cash management; (iv) domestic debt management; and (v) internal and external controls.
5. Improving Niger’s public finance management requires a long-term reform program, which should be implemented in phases, with the full support of the Government and the donor community. The PEMFAR includes a table presenting a list of essential reforms as key recommendations that should be implemented over the next three years and beyond to improve the structure of public expenditures and strengthen fiduciary capacity. As of today, the Government is making great strides in improving financial management through a series of RSRCs.
59 6. The Niger Country Portfolio Performance Review (CPPR) held on March 7 and 8, 2007 identified shortcomings in: (i)implementing internal control procedures in most of the projects; (ii)delays in Government' s financing through counterpart funds; and (iii)the existence of ineligible expenditures.
7. To date, the fiduciary compliance of the Bank's portfolio in Niger indicates no overdue audit report.
8. At present, the overall country risk rating in Niger is substantial. The situation described above may have some effects on PDIL implementation because of the fiduciary concerns mentioned above by the PEMFAR report and the CPPR conclusion,
Risk Assessment and Mitigation
Risk Risk Remarks Zondition Risk Mitigating Measures Resi rating Y/N Risk Inherent risk S -" Country level: S The Government recognizes N In September/October 2006, the S Quality of Public existence ofproblems in the Government strengthened the Financing PFM arrangements. There are internal controls ofthe expenditure Management significant concerns, about the circuit by removing all the Financial (PFM), standard accuracy ofinformation, internal Controllers and replaced them with of financial and external audits. For example, new senior staff. In July 2007, accounting, public accounts are delayed by Financial Control Manual was reporting and four years, and therefore could developed. Guidelines and audit auditing; and not be audited in a timely way by techniques for Court ofAccounts quality of FM Court ofAccounts. Also Public are now documented. Actions are profession. Sector internal and external foreseen to produce reliable Control Institutions have weak accounts on time. But the issue capacity. about the accuracy of information remains. However, the implementation of the PFM reform program (PEMFAR) is underway through RSRCs series.
Entity level: The METP legal and institutional N The METP previous experience with M ,Independence of framework is moderately regard Bank operations is a strength. entity's satisfactory and has previous The Bank is launching the management and experience overseeing Bank preparation of a Technical appropriateness of financed projects. But, it needs a Assistance Project of which one organizational robust internal control component will deal with training structure. framework and the required and encouraging professional number of qualified staff. qualification ofcivil servants. Project level The CUD, CUM and CUN are N The PDIL is being prepared by a M funds flow and using circuits of the urban and team who has previous experience accountability local agencies ofthe Public in implementation of Bank financed issues, due to Treasury, which have slow projects. FM responsibility and dispersed payment processes and cash duties will not decentralized at the implementing constraints. level ofthe CUD, CUM and GUN. units with no experience in
60 implementing Bank-assisted projects. Control Risk: M Budgeting: M The BNC has previous The newly recruited CFO is trained lack ofclear experience in budgeting on the project’s administrative definition of preparation process and in procedures related to budgeting budget monitoring of variations ofBank preparation process and in preparation financed projects. It will need monitoring ofvariations. These process collaboration of the decentralized procedures are documented in the absenceof entities. existing FM procedures manual. authorization and monitoring of budget variations in the view to make decisions Accounting M The existing charts of accounts Relevant charts of accounts for delays in in place are not applicable to PDIL activities and expenditure bookkeeping PDIL. The simplified software categories will be documented in the lackof cannot cover the PDIL existing FM procedures manual and, compliance with accounting needs used to customize the new acceptable accounting software accordingly. accounting The newly recruited CFO and the standards accountant at the BNC are lackof experienced and qualified staff and adequate policies familiar with FM ofBank-financed and procedures, projects. including chart of accounts accounting function not staffed with adequately experienced and qualified staff softwarenot customized on the basis of the project’s accounting needs Internal Controls M The segregation of duties is not In addition to the Project lack of quality appropriate for the PDIL. The Preparation Team, a CFO has been and existing FM procedures manual recruited to set up an efficient documentation of exists at the BNC level for Bank segregation ofduties. The existing policies and financed projects. At the present FM procedures manual will be procedures, time, it is used to manage the updated to take into account PDIL including PPF framework. There is no FM needs. Implementation ofFM segregation of internal auditor procedures will be assessed by the duties and for Bank FMS and/or external auditors. procurement The Project Preparation Team is delays in familiar with the Bank internal preparation of controls arrangements. PFM bank internal controls at the reconciliations municipalities’ level are acceptable. non- The Financial Controller and the maintenance of IGS will intervene in FM of the records for fixed PDIL assets and stocks absenceof internal audit function.
61 - Funds Flow M There are slow payment N A Segregated Designated Account M cashflows processes and cash constraints at will be opened in a commercial bank constraints due to the different agencies of the to receive Credit’s funds. delayed fund Public Treasury. This situation Disbursement procedures will be flows affecting has major effects on the documented in the existing FM project municipalities. procedures manual for PDIL’s users implementation; at only the BNC level. fundflow arrangements are complicated and poorly functioning. - Financial The BNC is not familiar with the The appropriate formats for Interim M Reporting Interim Un-Audited Financial Un-Audited Financial Reports and lack of quality Reports (IFR). To keep books for Annual Financial Statements will and document of for the PPF, the accountant is be documented in the FM FMreporting using simplified software at the procedures manual. The new responsibilities, present time. software will be customized and form, content and installed at the BNC office periodicity of The accountant will be trained on IFRs and annual IFRs financial reports delays in preparation and production of IFRs and annual financial reports - Auditing There are needs for insuring The audit TORSwill be developed M inadequate financial information is accurate to take into account PDIL’s needs. institutional and assets are safeguarded at the The BNC has previous experience in arrangements in central level. audit preparation for Bank-financed place, for the Court of Accounts has a weak projects. A private audit firm will appointment of audit capacity. be then appointed. external auditors Court of Accounts is being limited strengthened through RSRC series, capacity of and according to its mandate, has national external the right to audit PDIL at any time. auditors - Overall Risk M Major risk mitigating measures The functioning of all these FM M Rating are already incorporatedinto arrangements will receive follow-up project design dufing upcoming supervisions.
Risks:-S: Substantial; M: Moderate; L: Low
Strengths
9. The BNC is composed of key FM staff that has previous experience in Bank financial management procedures. Existing FM procedures manual are to be updated and simplified software will be replaced by another meeting the PDIL needs. The present accountant is keeping books ofthe PPF.
10. The harmonized and simplified public accounting and internal control systems in place at the CUD, CUM, CUNand related municipalities are acceptable.
62 Weaknesses and Action Plan
Significant Weaknesses Action Responsible body Completion
Inefficient segregation of Recruitment of a CFO and BNC Completed: an experienced CFO duties at the BNC. related-training provided. was recruited in December 2007.
Existing FM capacity of The BNC will be provided BNC Before Board approval, excluding the BNC does not with adequate financial appointment of external auditors, at completely cover PDIL management arrangements the latest three months after needs. as described below in the effectiveness date. FM Action Plan
Slowness of payment process and cash constraints at the urban and Niger PFM reforms Government (Ministry of End of RSRC3 (DPL3): June 2009. local agencies of the Public Program resulted from Economy and Finance) Treasury. PEMFAR is being implemented through Weak capacity of Public RSRCs series. Sector internal and external Control Institutions.
Financial Management Actions plan
Actions Deadline Intermediate Milestones Responsibility Agreement of IFR format and on By Negotiations Agreements during BNC Audit TORS Negotiations Recruitment of a CFO and N/A Completed: an experienced BNC provision of related training. CFO was recruited in December 2007 Updating and adoption of FM Before April 25,2008 First draft shared with IDA BNC procedures manual before Board’s approval Establishment of the FM Before April 25,2008 This should be completed BNC computerized system at the central before Board’s approval level Appointment of an external By 3 months after Selection process completed BNC auditor effectiveness 3 months after effectiveness
The BNC as the Budget Management and Accounting Center
11. The Coordination Unit of the PDIL (BNC) will be responsible for the financial management of the project. The Coordinator of the PDIL, as the authorizer (“ordonnateur”) of project expenditure, will approve all related commitment documents, and authorize cash transactions in the project’s designated account located in Niamey. The BNC will monitor funds ’ disbursement and application withdrawals and direct payments, collect and control invoices, manage the project’s designated account, keep the books of accounts, prepare and produce quarterly Interim Un-Audited Financial Reports (IFR), and make the necessary arrangements for the annual audit of all accounts. The BNC will be required to make operational the fully integrated financial management and accounting system, using appropriate software, detailed FM procedures manual, and charts of accounts including the format, content, and periodicity of the various financial statements to be produced.
63 Stafing and Training
12. The Project Fiduciary Staff placed in the BNC will be composed of the CFO (already recruited and shared with PAPST), the accountant, the procurement specialist and the support staff. This team will work under the supervision ofthe project coordinator.
13. A training program will be drawn up to continue strengthening fiduciary management capacities. Training is mainly conducted through the Bank's local or sub-regional training institutions (Centre Africain d 'Etudes Supe'rieures en Gestion - CESAG and Institut Supkrieur Africain pour le De'veloppement de Z'Entreprise - ISADE in Dakar). The BNC will also require the consultants appointed for updating the FM procedures manual and for setting up accounting software, to assist the whole fiduciary staff of the PDIL in updating and maintenance of the integrated computerized FM system.
Budgeting
14. The budget preparation and monitoring process will be clearly defined and documented in the FM Procedures Manual. The BNC should apply the annual budget time frame to avoid budget readiness delays while working closely with the decentralized entities.
Accounting Policies and Procedures
15. Accounting standards to be applied by the BNC will be very similar to the International Public Sector Accounting Standards (IPSAS) issued by the Public Sector Committee of the International Federation of Accountants (IFAC-PSC). Any significant difference will be adequately disclosed and explained in the notes of the financial statements. The BNC will prepare the project's financial statements for auditing, consolidating accounts from the decentralized entities. Project accounting policies and procedures as required by the PDIL will be documented in the FM and Procedures Manual.
16. Accounting Software. A computerized financial management system will be developed and put in place at the BNC. The CFO will use a satisfactory and sound accounting package capable of producing all the accounting and financial data required, including financial statements, Bank reconciliation statements, and all financial reports, such as the Interim Un- Audited Financial Reports (IFRs). The accounting software should integrate the components of activities and categories of expenditures of the project. The format of periodic reports will be developed and agreed with the Government and the Bank. The accounting software should be accommodate multiple projects, sites and currencies, and will include the following modules which should be integrated: budgeting, general accounting, cost accounting, reporting, monitoring and evaluation, fixed assets management, preparation ofwithdrawal applications, and tracking of disbursements by donors. The software will also maintain the books of accounts electronically.
17. A consultant will be appointed to develop charts ofaccount as part ofthe FM Procedures Manual and to customize software. He/she will also provide related assistance to the whole fiduciary staff in terms ofupdating and maintenance ofthe system.
64 Internal auditing
18. The Financial Controller at the Prime minister’s Office, the Inspector General ofServices of the Ministry of Territorial Planning and Community Development, as well as the Inspector General of Finance (IGF) would maintain the right to intervene in PDIL’s fiduciary management at the level of the BNC. They would carry out reviews of transactions from time to time, based on their mandate for Public Sector Control Agencies. Their duties and accountabilities will be documented and filed at the BNC level.
Funds Flow and Disbursement Arrangements
Disbursement Arrangements
19. The BNC will be responsible for implementing the fiduciary obligations under the Financing Agreement and will claim disbursements by sending the withdrawals and direct payment applications to the Bank through the payment authorization ofthe Ministry ofEconomy and Finance ofNiger. A designated account will be opened in a commercial bank in Niamey and will be managed by the BNC. Funds from the account will be used to finance eligible expenditures.
Disbursement Methods
20. Disbursements will be transaction-based and will include the Designated Account Advance, Direct Payment and Special Commitment methods. It is expected to shift to quarterly IFR-based disbursement as soon as the Bank is satisfied with the accounting and reporting capacity ofthe BNC.
Minimum Value of Applications
21. The minimum value of withdrawal applications submitted under the IDA Credit for Direct Payments and Special Commitments will be documented in the Letter ofDisbursement of the PDIL.
Reporting on Use of Loan Proceeds
22. Disbursements for all expenditures should be made against full documentation except for some contracts for goods, consulting firms, individual consultants as well as operating costs, which will be claimed on the basis of Statement of Expenditures (SOEs) without supporting documentation. Training will also be claimed on the basis of statement of expenditures. Values of these contracts will be documented in the Disbursement Letter of the PDIL. All supporting documentation for SOEs will be retained at the BNC. They will be kept readily accessible for systematic internal ex-post reviews on request. The supporting documentation will also be subject to periodic review by the Bank teams during supervision missions as well as by the external auditors.
65 23. The BNC will submit a bank a reconciliation statement of the designated account together with the withdrawal applications, on a monthly basis.
Designated Account
24. The designated account will be managed by the BNC. The designated account will be located in a commercial bank. The currency of designated accounts will be the CFAF. The authorized ceiling for the designated account for the Credit will be documented in the Disbursement Letter of the project. The advance should give the project sufficient liquidity for an average offour months ofexpenditures.
Allocation of IDA Credit Proceeds
Components Amount of the Credit allocated Percentage of Expenditures to be (in US$ million equivalent) financed 1. Goods, works and 29.1 100% including taxes consultants' services for the project, including training, operating costs and audits 2. Refund ofthe Project 0.9 To be refinanced Preparation Advance (PPF) TOTAL AMOUNT 30.0
Flow of funds:
inancing Account
14
Technical Service Directorates Suppliers I' I I Legend : Transactions-based fund claims in the Designated Account Direct Payments -m-. Advances for Punctual Activities ......
66 Financial Reporting and Monitoring
25. The BNC will be responsible for the overall reporting ofthe project. The CFO will make sure that, on a quarterly basis, the Interim Un-Audited Financial Reports are produced and transmitted to IDA not later than 45 days after the end of the quarter. The first IFR shall be furnished to the World Bank not later than 45 days after the end of the first six calendar months after the Effectiveness Date, and shall cover the period from the incurrence of the first expenditure under the project through the end ofsuch first six calendar months.
26. The reporting format and procedures will be documented in the FM Procedures Manual. IFR will be composed of financial reports such as (i)sources and uses of funds by funding source and nature ofexpenditures; and (ii)uses of funds by components/activities ofthe project.
27. Quarterly IFRs and annual financial statements will cover all activities financed through the PDIL. The annual financial statements will be subject to external audit as described below. The BNC will also be required to produce, not later than June 30 of the following fiscal year, audited annual financial statements.
External audit:
28. External auditors from a private firm in accordance with international auditing standards acceptable to IDA will conduct an annual audit ofthe financial statements prepared by the BNC and ofthe Designated Account.
Audit Report Due Date External auditors’ one opinion on Financial Statements Submitted within six months after the end of each (annual financial statements, designated account financial year. statement and SOEs) prepared by the BNC. Letter to Management prepared by the external auditors Submitted within six months after the end of each and containing findings and recommendations financial year.
Credit Conditions and Legal Covenants
Credit Conditions:
29. For Negotiations:
a) Agreement on the format ofquarterly IFR and annual project financial statements. b) External audit TORSsatisfactory to the Association.
30. Dated Covenant:
c) The Recipient has appointed an external auditor on the basis ofterms ofreference, and with qualification and experience satisfactory to the Association, within three months ofthe effectiveness ofthe Financing Agreement.
67 Legal Covenants
31. The following points of the financial covenants must be stated in the Financing Agreement: the Borrower is (i)to be compliant with all the rules and procedures required for withdrawals from the Designated Account of PDIL; (ii)to maintain PDIL financial management system, including records, accounts and preparation ofrelated financial statements in accordance with accounting standards acceptable to the Bank and to be audited; and (iii)to prepare and furnish to the Bank Interim Un-AuditedFinancial Reports.
Supervision Plan
32. Given the moderate level of the overall FM risk, the project will require one financial management supervision per year, which should be budgeted for. However, intensity of supervision could be reassessed upon the evolution ofthe rating for the overall control risk.
33. Financial management supervision will be carried out by the Bank’s Financial Management Specialist (FMS) who will carry out the following tasks:
Conduct a financial management review before effectiveness/disbursement; Review the financial management aspects ofthe IFR; Review the Audit Reports and Management Letters from the external auditors and follow-up on material accountability issues by engaging with the task team leader, client, and/or auditors; the quality ofthe audit (internal and external) also is to be closely monitored to ensure that it covers all relevant aspects and provides enough confidence on the appropriate use offunds by recipients; Provide assistance to build or maintain appropriate financial management capacity; Reviews ofcontrols; and Reviews oftransactions, including a sample oftransactions above and below SOE review threshold.
68 Annex 8: Procurement Arrangements NIGER: Local Urban Infrastructure Development Project
A. Background- Procurement reform
1. A Country Procurement Assessment Report for Niger was finalized in 1998; following this assessment, the Government developed a new procurement code (Code des Marche's Publics - CMP) in 2002, and created the National Procurement Regulatory Agency (ARMP). The procedures and mechanisms for addressing bidders' complaints are handled by the Disputes Settlement Committee (CRD) within the ARMP. The Government Procurement Code defines procurement procedures in conformity with good practices that are deemed acceptable by the Bank. In contrast, there are a number of major implementing texts for the CMP that are not in place, in particular the Government Procurement Procedures Manual establishing efficiency standards, procedures, and the delegation of powers and responsibilities throughout the institutional chain.
2. Niger strictly followed the West African Economic and Monetary Union (UEMOA) guidelines by clearly separating the control functions and the regulation process. Thus the ARMP was consequently created under the same legislation while its composition, organization and operation were defined by Decree No."190 PRNNEF dated July 6, 2004. The texts related to the organization and functioning of the General Directorate for Public Procurement (Direction Ge'ne'rale des Marche's Publics) are under examination by the Government. The overall procurement context in Niger is considered satisfactory and no major problem has been identified in IDA-financed projects. However, to allow a full application ofthe provisions ofthe Bank's procurement and selection and employment guidelines, IDA has provided to the project preparation team the list of the national procurement clauses which are partially or entirely inconsistent with the Bank's guidelines (see the end ofthe annex).
3. Lastly, the financial management procedures at the level of local government agencies have yet to be adequately tested, and expenditures financed from national budget resources are managed by the Directorate-General of the Treasury. There are still extremely long time lags recorded for payments to enterprises by the Treasury, which constitutes a factor of inefficiency in contract execution.
B Guidelines
4. Procurement for the proposed project would be carried out in accordance with the World Bank's "Guidelines: Procurement under IBRD Loans and IDA Credits" dated May 2004, revised October 2006; and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004, revised October 2006 and the provisions stipulated in the Financing Agreement. The various items under different expenditure categories are described in general below. For each contract to be financed by the Credit, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame are agreed between the Borrower and the Bank in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual
69 project implementation needs and improvements in institutional capacity. The results of the evaluation, the contract award should be published in accordance with advertising provisions in the following guidelines: “Guidelines: Procurement under IBRD Loans and IDA Credits” dated May 2004, revised October 2006; and “Guidelines: Selection and Employment ofConsultants by World Bank Borrowers” dated May 2004, revised October 2006.
C. Procurement Documents
5. The procurement will be carried out using the Bank’s Standard Bidding documents or Standard Request for Proposal (RFP) respectively for all International Competitive Bidding (ICB) for goods and recruitment of consultants. For National Competition Bidding (NCB), the Borrower shall submit a sample form ofbidding document to the Bank for prior review and will use this type of document throughout the project once agreed upon. The sample form of evaluation reports developed by the Bank will be used.
D. Advertising
6. A General Procurement Notice (GPN) will be prepared and published in United Nations Development Business (UNDB), in Development Gateway (dgMarket), and in at least one national newspaper, after approval of the project by IDA Board and before effectiveness. The GPN would show all ICB for works and goods contracts, and all consulting services involving international firms. Specific Procurement Notices (SPN) for all goods and works to be procured under ICB and Expressions of Interest (EOI) for all consulting services costing the equivalent of US$200,000 and above will be published in the UNDB, dgMarket, and in the national press
E Procurement Methods
7. Procurement of Works. The procurement will be done using the Bank’s Standard Bidding Documents (SBD) for all ICB and National SBD agreed with or satisfactory to the Bank for National Competitive Bidding (NCB): - International Competitive Bidding (ICB): Each civil works contract package estimated to cost US$1,000,000 and more would be procured through International Competitive Bidding (ICB); - National Competitive Bidding (NCB): Each civil work contract package estimated to cost less than US$1,000,000 may be procured through National Competitive Bidding (NCB) procedures acceptable to IDA; and - Small works estimated to cost less than US$lOO,OOO equivalent per contract, which do not lend themselves to grouping, and therefore, are unlikely to attract foreign bidders may be procured under shopping procedures as detailed in paragraph 3.5 of the “Guidelines: procurement under IBRD Loans and IDA Credits”, May 2004, revised October 1, 2006 and the Guidance on Shopping Memorandum” issued by IDA on June 9,2000.
8. Procurement of Goods. The procurement will be done using the Bank’s SBD for all ICB and National SBD agreed with or satisfactory to the Bank for National Competitive Bidding. - International Competitive Bidding (ICB): Each goods contract package estimated to cost US$500,000 and more would be procured through ICB;
70 - National Competitive Bidding (NCB): Contract estimated to cost less than US$500,000 and locally available at commercial price would be procured through NCB procedures acceptable to IDA; - Shopping: Procurement for readily available off- the shelf goods cannot be grouped, or standards specification commodities for individual contracts of less than US$50,000 equivalent, may be procured under shopping procedures as detailed in paragraph 3.5 of the “Guidelines: procurement under IBRD Loans and IDA Credits”, May 2004, revised October 1,2006 and the Guidance on Shopping Memorandum’’ issued by IDA on June 9,2000.
9. Selection of Consultants. The project will finance consultant services such as studies, surveys, control and supervision ofworks, audits, trainers, workshop facilitators, etc. Consultant firms will be selected through the following methods: (a) Quality and Cost-Based Selection; (b) Least Cost Selection for financial and technical audits and insurances; (c) Selection under a fixed budget (FBS) for recruitment of Non-Governmental Organizations (NGOs) as facilitators to assist or advise the communities; (d) selection based on the Consultant’s Qualification (CQS) for contacts estimated to cost less than US$50,000 equivalent and associated to exceptional studies or research which require interventions from specialized firms with a highly specific expertise; (e) Single Source Selection (SSS), with prior agreement of IDA, for services in accordance with the paragraphs 3.10 to 3,12 of Consultants Guidelines. Individual Consultant (IC) will be hired in accordance with paragraph 5.1 to 5.4 of Bank Guidelines; sole source may be used only with prior review of the Bank. The recruitment of staff under the project shall be done through competitive selection following a national publication.
10. Short lists of consultants for services estimated to cost less than US$lOO,OOO equivalent per contract may be composed entirely ofnational consultants in accordance with the provisions ofparagraph 2.7 ofthe Consultant Guidelines.
11. Single Source Selection: in exceptional cases, this method would be used in accordance with the provisions ofparagraph 3.9 to 3.13 ofthe Guidelines, with IDA’Sprior no-objection.
12. Procurement of non-consulting services. Procurement procedures acceptable to IDA will be agreed in the procurement plan.
13. Training, workshops, study tours, and conferences. The training (including training materials and support), workshops, conference attendance and study tours, will be carried out on the basis of approved annual training and similar programs. A detailed training program giving categories of training, number of trainees, duration of training, staff months, timing and estimated cost will be submitted to IDA for review and approval prior to initiating the training process. The appropriate methods ofselection will be derived from the detailed schedule.
14. Operating Costs. The operating costs shall include staff, travel expenditures and other abroad travel-related allowances with prior clearance from IDA; equipment rental and maintenance, vehicle maintenance and repair; utilities and communication expenses. Operating costs financed by the project will be procured using the implementing agency’s administrative procedures described in the Project Operations Manual reviewed and found acceptable to IDA.
71 F. Assessment of the agency’s capacity to implement procurement
15. Taking into account the assessments made during project preparation, procurement activities under the PDIL will be carried out by BNC, local authorities, or NIGETIP as follows:
a) The BNC will be responsible for procuring goods and services under Components A.1, A.2 and C, in accordance with its manual of procedures, which has already been approved by the Bank and must remain acceptable to the Bank for the duration of the Project. In particular, BNC will be responsible for procurement under the Capacity Building Sub-Components for local and central governments’ entities A. 1 and A.2 (recruiting consultants and training agencies, purchasing goods), implementing cross- cutting institutional support, as well as for implementation-related activities: technical and financial audits and consultants for monitoring and evaluation. An assessment of the BNC capacity to implement procurement actions for the project was carried out by IDA in June 2007. The assessment reviewed the organizational structure for implementing the project and the interaction between the project’s staff responsible for procurement and the municipalities’ relevant unit for administration and finance.
b) The CUM, Dosso and the five municipalities of Niamey will be responsible for procuring goods, works and services under Component B for operations up to a ceiling of US$250,000 for Niamey and Maradi, and US$l50,000 for Dosso. A procurement specialist will be added to the staff of each of these local ‘governments. This individual will be responsible for: (i)coordinating and consolidating information on procurement activities; and (ii)promoting and guaranteeing effective document archiving and harmonization of procurement procedures and practices within the local government. The position of procurement specialist will be closely tied to that of the Secretary- General ofthe local government. In addition, a manual oflocal government procurement procedures (MPPM) will be developed (or revised in the case of CUM and Niamey V) for each local government that does not have one.l7 The MPPM will ensure their conformity with CMP 2002 and the Bank’s 2004 Guidelines updated in 2006 (international competitive bidding procedures), and introduce the Technical Commission for Bids Evaluation (CTEO) and Contract Award and Bid Opening Commission (COA). Assistance with (i)introducing the position of procurement specialist; and (ii)preparing the MPPM for local governments will be provided by the BNC. Short-term technical assistance will be provided by NIGETP under close supervision ofthe BNC.
c) To ensure adequate implementation of the complex works, given the capacity shortcomings of the local authorities, NIGETIP will be responsible for procuring goods, works and services under Component B for operations above US$250,000 for Niamey and Maradi, and US$150,000 for Dosso. The selection of NIGETIP under a single source procedure is guided by following reasons: (i)NIGETIP is the unique expertise at the local level and at reasonable costs; and (ii)a competitive selection process would not attract foreign expertise with similar experience andor at similar costs. The local authorities will sign an Agreement delegating all procurement activity to NIGETIP for these operations. The Manual of Procedures of NIGETP has been reviewed during
” The objective is also that this manual be a reference throughout the country.
72 Appraisal and found acceptable to IDA, provided that the 2004 Bank guidelines (revised in October 2006) are taken into consideration. The Manual will be updated prior to the signature ofthe first delegated management contract with NIGETIP.
16. The key issues and risks concerning procurement for project implementation have been identified and revealed that the risks are high with respect to the procurement capacities of the municipalities themselves and the national framework for ex ante external control to be performed by the DGCMP for ex ante review, and the Disputes Settlement Committee (CRD) review ofbidder complaints.
17. The corrective measures which have been agreed are: (i)intervention by the NIGETIP, as a consulting firm, for training, assistance and advisory work to the beneficiary local governments and for private sector training and capacity building; (ii)the provisions of CMP which are not partially or entirely inconsistent with the Bank’s guidelines (as listed at the end of this annex) should not apply; (iii)the financial management ofthe project should be vested in the BNC; and (iv) the Bank should cany out at least two supervision missions a year to ensure that all the steps taken to ensure the proper execution and achievement of the project objectives are being implemented efficiently.
18. The overall project risk for procurement is high.
G. Procurement Plan
19. The Borrower, at appraisal, developed a procurement plan for project implementation which provides the basis for the procurement methods. The plan will cover the first eighteen months of project implementation. This plan has been agreed between the Borrower and the Bank Team on April 3,2008 and is available at BNC, Niamey Niger. It will also be available in the project’s database and in the Bank’s external website. The procurement plan will be updated in agreement with the Bank team annually, or as required, to reflect the actual project implementation needs and improvements in institutional capacity. All procurement will be carried out in accordance with the formally-agreed procurement plans (original and formally updated).
H. Frequency of Procurement Supervision
20. In addition to the prior review supervision to be carried out from Bank offices, the capacity assessment of the Implementing Agency has recommended bi-annual supervision missions to visit the field to carry out post review of procurement actions. The Independent Procurement Review could be carried out if necessary.
Details of the Procurement Arrangements Involving International Competition
(a) Goods, Works, and Non-Consulting Services. List of contract packages to be procured following ICB, important NCB and direct contracting:
73 11 2 31 4 151 6 7 8 9
Contract Estimated Proc. Pre- Domestic Review Expected Comments :E (Description) Method Qual. Pref. by Bank Bid- 1 1 1 I 1 (yedno) 1 Prior / Post Opening Date
1 East-West 2,700,000 ICB No Yes Prior Urban Road in Niamey
2 Av. Mangaand I 1,075,000 ICB No Yes Prior RdRF2in Niamey I11 3 RdTJ29in 1,425,000 ICB No Yes Prior Talladje, Rd Tchanga and Rd CSI-Akroport in
4 I RdKI47at 930,000 NCB Prior May 09 By NIGETIP Kirkissoye and T Zarmagandeye I inNiameyV 5 I Rds in Maradi I 3 12,500 NCB IMay 09 By NIGETIP 6 I Drains in 3 12,500 NCB May 09 By NIGETIP I Maradi 7 I TruckTerminal I 680,000 NCB No Prior May 09 By NIGETIP I Maradi 8 I Central Market I 1,875.000,, ICB No Yes Prior June 09 By NIGETIP in Maradi 9 Roads Simbeye 225,000 NCB May 09 By NIGETIP
in Dosso 10 Drain(1100m) 375,OO NCB No No Post May 09 By NIGETIP in Kouarategui in Dosso 11 Truck Terminal 360,000 NCB No No Post May 09 By NIGETIP
12 I Markets in 650,000 I NCB I No I No Prior June 09 By NIGETIP
1 Equipment for 135,000 NCB No No Post Octo8 ByBNC municipal garage 2 Computers (20 65,000 NCB No No Post Sept08 ByBNC sets) 3 Urban sketches, 165,000 ICB No Yes Prior Oct. 08 By BNC. No aerial photos local fm and atlas available
(b) Prior review: All civil works contracts costing US$l,OOO,OOO and above per contract, all goods contracts costing US$500,000 and above, all direct contracting, the first two contracts of
74 each procurement method, irrespective ofthe amount will be subject to prior review by the Bank, as determined mandatory in paragraphs 2 and 3 of annex 1 of the Bank’s Procurement Guidelines. c) Post review: For each contract for works and goods not submitted to the prior review, the procurement documents will be submitted to IDA for post review in accordance with the provisions of paragraph 4 of Annex 1 of the Bank’s Procurement Guidelines. The post review will be based on a ratio of at least 1 to 5 contracts.
2 1. Consulting Services
(a) List ofconsulting assignments with short-list ofinternational firms or single-source contracting:
1 2 3 4 5 6 7
Ref. Description of Estimated Selection Review Expected Comments No. Assignment cost Method by Bank Proposals Prior / Submission Post Date 1 Support to waste 60,000 C.I. Prior Sept08 ByBNC
2 Preparation of 35,000 I C.I. I Prior I Sept08 I ByBNC
3 Definition of National 80,000 I SBQC I Prior I Dec.08 I ByBNC framework for urban and financial transfer mechanism 4 Financial audit 105,000 LCS Prior July08 By BNC 5 Technical audit 55,000 C.I. Prior Jan09 ByBNC 6 Study and supervision 310,000 SBQC Prior Sept 08 By NIGETIP East-West Urban Road in Niamey 7 Study and supervision 185,000 SBQC Prior Sept 08 By NIGETIP
8 Study and supervision 65,000 I SBQC I Prior I Sept 08 I By NIGETIP. Markets in Dosso Temporary resettlement needed 9 Contract Management 350,000 ss Prior May 08 delegation Niamey / NIGETIP 10 Contract Management 175,000 ss Prior May 08 delegation Maradi / NIGETIP 11 Contract Management 90,000 ss Prior May 08 delegation Dosso / NIGETIP
(b) Prior review: Each contract estimated to cost US$lOO,OOO and more per contract for firms and US$50,000 and more per contract for individuals consultants: (i)all single source selection; (ii)all trainings; (iii)the first two contracts of each selection method irrespective ofthe amount,
75 (iv) all terms of reference of contracts that estimated cost is greater than US$5,000; and (v) all amendments of contracts raising the initial contract value by more than 15 percent of original amount or above the prior review thresholds will be subject to prior review by the Bank as determined mandatory in paragraphs 2 and 3 ofAnnex 1 ofthe Bank's Procurement Guidelines.
c) Post review: For each contract for services not submitted to the prior review, the procurement documents will be submitted to IDA for post review in accordance with the provisions ofparagraph 4 of Annex 1 of the Bank's Procurement Guidelines. The post review will be based on a ratio ofat least 1 to 5 contracts.
(d) Short lists composed entirely of national consultants: Short lists of consultants for services estimated to cost less than US$lOO,OOO equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.
22. Provisions ofCMP which should not apply:
The provision on article 03 on Direct Contracting shall not apply. The obligation to provide evidence that the bidder has satisfied all its tax obligations to the Recipient as a condition to make a proposal for the procurement of works, goods, and non-consulting services (notwithstanding any contrary provisions of article 10 ofthe Procurement Code) shall only apply to national bidders. The obligation to provide a certificate of eligibility as a condition to make a proposal for the procurement of works, shall only apply to national bidders (notwithstanding any contrary provisions of article 11 of the Procurement Code); the eligibility criteria for international bidders shall be limited to those included in the bidding documents. The division of expenditures in accordance with article 34 of the Procurement Code shall be subject to Prior Review by the Association. The national preference provided for by article 36 ofthe Procurement Code shall not
apply * In addition to the provision of article 40 of the Procurement Code, the short list of bidders shall be subject to Prior Review by the Association. Each contract procured through direct contracting in accordance with article 42 ofthe Procurement Code shall be subject to Prior Review by the Association. The amount of the bidder's guarantee provided for in article 79 of the Procurement Code shall be determined as a percentage (1 to 2%) of the estimated cost of the contract. No representatives of the private sector or of the donors shall be included in the Recipient's committee for the bid evaluation and award (despite the provisions of Articles 3, 15 and 26 ofthe Recipient's arre"te' 113 dated October 10,2006). The conditions of application of the various methods of procurement under the National Competitive Bidding shall be determined in the Procurement Plan (notwithstanding any contrary provisions of articles 5 and 7 of Recipient's arr& 270/CAB/PM/ARMP dated October 24,2007).
76 23. Additional definitions:
“Procurement Code” means the Recipient’s procurement law entitled “Code National des March& Publics” adopted by Ordinance $2002-007 dated September 18,2002.
77 Annex 9: Economic and Financial Analysis NIGER: Local Urban Infrastructure Development Project
1. Project Objective. The project’s development objective is to increase and sustain access of urban residents to basic infrastructure and services, particularly those living in deprived settlements.
2. Component A - Capacity building (estimated cost: US$ 1.96 million). The focus of this component is to build and consolidate management capacities for programming, implementing and managing urban infrastructure and basic services. The component includes: (i)support to the local stakeholders in the targeted cities: Urban Community of Niamey (CUN), Urban Community of Maradi (CUM), the municipalities ofNiamey, Dosso and Maradi for improving project implementation; (ii)support to selected central governmental institutions active in the areas of urban management, to strengthen public stakeholders’ capacities in areas of project objectives, beyond the project’s targeted cities; and (iii)support to the private sector, mostly local contractors and consultant firms involved in project implementation.
3. Component B - Municipal Investments (estimated cost: US$20.13 million). The main objective ofthis component is to upgrade infrastructure to: (i)increase access to basic services in the targeted cities, primarily in low-income settlements. This includes construction or rehabilitation of roads likely to facilitate access to and from land-locked settlements; drainage works, water stand-posts, public latrines, health and social facilities, etc.; and (ii)construct or rehabilitate infrastructure aimed at boosting local economic development: primary roads, food markets and truck terminals.
4. The following table provides a breakdown ofthe costs ofidentified operations, by category ofworks (in US$ without taxes).
5. Most of the investments (road networks for access to poor districts, drainage works, construction of classrooms, health facilities, etc.) in the project provide non-quantifiable economic benefits, comprising social and environmental gains expected in the targeted cities. 6. Planned investments will provide the following quantifiable and non-quantifiable socio- economic gains:
78 Strengthened capacity of local governments to provide services within their mandate; Job creation and promotion ofprivate sector participation in service provision; Service to isolated poor districts; Increased revenues for the communities through increased revenue from market facilities; Reduction in vehicle maintenance and transport costs, owing to improved road conditions and shorter distances to public transport services; Improved quality of life in the targeted areas, as a result of better living conditions; Development ofactivities in areas currently without service; Improvement in health and household incomes, owing to the reduction in water- borne diseases and health costs.
7. Given the disparity among the interventions planned for the three cities, reflecting the differences in conditions related to access to services and their physical characteristics, the overall rate of return and the overall current net value have not been calculated. The planned intervention program should, nevertheless, be economically viable. The economic analysis confirming this fact was conducted on the market facilities, the structuring road network, and the main service roads for the poor districts, which represent approximately US$ 8.66 million, or around 72 percent oftotal investments (25 percent for market facilities, 3 5 percent for structuring road networks, and 12 percent for service road networks).
Urban Roads
8. The economic analysis of the urban road networks was conducted using the HDM-IV model. This model reflects road conditions, represented essentially by deterioration indicators (the most important being roughness) on vehicle consumption and operating conditions (change in annual number ofkilometers). This produces a calculation ofthe vehicle operating cost on the section ofthe road studied, along with its condition indicators.
9. The proposed International Roughness Index (IRI) values are 12 for a “without project” scenario and 3 for a “with project scenario,” which is generally taken into account for paved roads during the first year in operation.
10. The proposed databases for vehicle operating costs are those from recently conducted economic feasibility road studies by the Directorate General of Public Works (Direction GBne‘raZe des Travaux Publics), for the urban sections ofinterurban roads. This is also the case with regard to maintenance strategies and policies for the pre- and post-project scenarios, the twenty-year lifespan, as well as the other parameters.
11. Investment costs are established on the basis of the identified technical characteristics of the project and the unit prices. The residual value is assumed to be negligible. Maintenance costs are estimated to be five percent ofthe investment costs, and assumed to be allocated every five years.
79 12. Average traffic flows have been estimated by measuring traffic on the various major roads, and projections done on the basis of hypotheses used in the economic feasibility study on the Mali Be‘ro Boulevard. This Boulevard presents the same socio-economic characteristics as the inter-communal road, or economic assessments of urban sections of a number of interurban roads (ENA-Lazaret Roundabout on the Niamey-Ouallam Road, Rond des arme‘es-airport exit roundabout on the Niamey-Dosso road):
a 50 percent of traffic generated, within the context of roads to be studied and the impact of their improvements on the socio-economic activities of the communes served; a 30 percent of traffic diverted, on the basis of the origiddestination survey results conducted during the same period, and on the fact that current road conditions are such that certain categories of vehicles (buses and articulated vehicles in particular) use them very rarely; a Seasonal coefficient of 60 percent, to account for the fact that measures were implemented during the most favorable period.
13. In summary, the annual average daily traffic level for each road in the first year of operation is estimated as presented in the table below:
Category ofVehicle Inter- Avenue Rue Rue Rue communal du RF2 Sirimbeye- Bagalam 20 Road Manga (Niamey) Oudounkoukou and Rue Network (Niamey) (Dosso) Sabngari 34 (Niamey) (Maradi) Private vehicles 2,624 1,382 1,361 148 173 vans 515 40 1 369 9 22 Two axle trucks 108 56 18 11 4 Three axle trucks 25 13 5 9 9 I Articulated vehicles I 51 41 51 71 81
14. The estimate ofeconomic benefits is the difference between the vehicle operating costs in both cases. The benefits for the various categories are calculated by multiplying the volume of traffic for each category ofvehicle by the gains in operating costs.
15. The economic assessment of the project was carried out through the quantified costhenefit analysis for each road. The socio-economic analysis takes into account the combined gains in vehicle operations, the volume of which (measured in terms of vehicle x kilometers) is reduced because ofthe project. Lower road maintenance costs for the community (costs lowered by a reduction in vehicles x kilometers) as well as time savings (in relation to a “without project” scenario) for project users are disregarded. However, benefits attributable to the Niamey inter-communal road (for the community) were taken into account and estimated at US$648,000 per year, bearing in mind a daily average value added of US$6 per unit and per year, for 300 formal units along the road (double the number ofcurrent units).
80 16. These components, which are monetized and linked to investment and operating costs, result in the calculation of indicators that measure the project's socio-economic impact from various perspectives, including: 0 The current net benefit or Net Present Value (NFV), which is the difference between current benefits and current investments over a twenty-year period, at a rate ofreturn of 12 percent. 0 The Internal Rate of Return (IRR), which is the value of the theoretical discount rate calculated so as to equalize the present value ofcost with that ofbenefit.
17. The calculations provide the following results:
Infrastructure Investment Costs NPV IRR (US$, HT) (US$, HT) Inter-communal Road (Niamey I,11, I11 et IV) 3,086,000 26,383,262 42 Avenue du Manga (Niamey 111) 649,110 2,199,382 26 Rue RF2 (Niamey 111) 333,795 823,762 23 Sirimbeye-Oudoukoukou (Dosso) 107,415 83,409 26.5 Bagalam- S abongari (Maradi) 284,130 238,296 24.8
Road network projects appear therefore to be largely viable for the community.
Facilities
18. As with the road networks, the effects method was used in this case. The economic analysis uses the costibenefits method, which is based on the analysis of flows in terms of costs and benefits being measured. In this case, unlike the financial analysis, where the review of activities and resource flows reflects the agent's perspective, an effort is made to assess the impact of market facilities on the economy, for the community in the broadest sense. This is justified by the nature of the investments, primarily focused on the construction of the main infrastructure. The benefits are defined as all new revenue allocated to the domestic agents, to which the increase in domestic consumption may possibly be added. Wages, for example, which are categorized as costs in the financial analysis, become benefits (income distribution).
19, Thus, within the context of the assessment of the benefits to be taken into account for these market facilities, a distinction is made between direct benefits, which include revenue, and all the effects brought about by the construction ofthese facilities on the economy.
Markets
20. Rehabilitation works on the Marche' Central and Petit Marche' markets in Dosso will help to increase capacity and improve the levels of service. Feasibility studies estimated that direct revenue following rehabilitation works will be 58,728,000 CFAF annually. This revenue, which was calculated based on a financial analysis, included only revenue from rent, storage, and various services.
81 21. The buildings at the Maradi central market, some of which are in ruins, no longer meet safety requirements. Internal networks are nonexistent or inadequate, thereby creating hygiene, health, and safety problems. Despite this situation, the market's tax potential (without any development) currently stands at 83,878,000 CFAF annually, which demonstrates the importance of commercial activities conducted there. The financial analysis of the development variables conducted as part of the feasibility studies estimated direct revenue (after development) at approximately 136 million CFAF annually.
Truck Terminals
22. In addition to providing parking facilities, the proposed works will contribute to the development ofrelated commercial activities and make the facilities more attractive to users and merchants, thus providing an additional source of revenue for the commune. In this case, direct revenue, which is also assessed in the feasibility studies, is on the order of 42,000,000 CFAF annually, for a parking volume ofbetween 30 to 40 vehicles each day.
23. Beyond the revenue generated by the construction of facilities, it bears noting that the urban community of Maradi and the urban commune of Dosso will have a pleasant living environment. Hygiene, sanitation, and safety, key components for city management, will be improved through the rehabilitation ofthe markets and construction oftruck terminals.
24. However, the benefits taken into account in the economic calculations include only the direct revenue generated by the improvements as calculated in the feasibility studies. These benefits alone, albeit partial, account for the viability of investments to be made, as presented in the table below.
Facility Investment NPV IRR Cost (US$, (US$, HT) (%) HTI Truck terminal - Maradi 63 5,25 0 463,644 23% Truck terminal - Dosso 321,090 480,349 34% Market (March& Central) - Maradi 1,732,500 578,573 17% Markets (Marche' Central & Petit March&) - Dosso 590,205 389,224 22%
25. The low economic internal rates of return for facilities in Maradi compared to those in Dosso can be attributed to the high level of investments in Maradi, although there is no significant difference in benefits.
82 Annex 10: Safeguard Policy Issues NIGER: Local Urban Infrastructure Development Project
Potential Long-Term Impacts
1. This project falls into Environmental Category B as no adverse long term impacts are anticipated. No long term adverse impacts were identified in the Environmental Assessment instrument, the Environmental and Social Management Framework (ESMF). This project will not fund activities that would cause an adverse effect on the environment or any form of land acquisition or restriction of access to sources oflivelihood.
2. The proposed project is organized into components aimed at implementing critically needed investments. The three main components are:
a Capacity building a Municipal Investments for the cities ofNiamey, Maradi and Dosso a Support to implementation, monitoring and evaluation.
3. Potential negative impacts are expected only from the Municipal Investments Component. Environmental and social concerns have been integrated into the project design, and impacts on the environment and people are included as criteria for the selection of the municipal investments. The ESMF and Resettlement Policy Framework (RPF) prepared during project preparation have provided mechanisms to identify impacts beyond the generic ones for which standard mitigation measures are built and to be applied during the implementation phase. The safeguards impacts identified are not expected to have any long term or cumulative impacts. The potential negative impacts of project implementation include: disturbances in 'the water quality and adverse physical environmental impacts resulting from noise and dust during civil works and temporary resettlement during large works (especially markets). Environmental protection clauses will be included in the contract documents. Project Location and Salient Physical Characteristics Relevant to the Safeguard Analysis
4. The proposed project is expected to take place in the cities of Niamey, Maradi, and Dosso. Measures Taken by the Borrower to Address Safeguard Issues
5. An ESMF was prepared as the environmental assessment instrument. The objective of the ESMF is to establish a mechanism to determine and estimate the future potential environmental and social impacts of the activities to be undertaken under the project, and to define mitigation, monitoring and institutional measures to be undertaken during implementation of the project. It is anticipated that project activities might not lead to land acquisition or restriction of access to sources of livelihood. However, in the event that there are resettlement concerns, a Resettlement Policy Framework (RPF) was also prepared, and this will be translated to Resettlement Action Plans (RAPS)as and when the need arises during project implementation. The two instruments ofESMF and RPF were disclosed in-country and at the Infoshop on August 6,2007 and September 5,2007 respectively.
83 Role of the BNC
6. The Project Management Unit (the BNC) and the municipalities will do the preliminary screening for all investments included in the program and will determine the actions necessary to comply with environmental and social safeguard issues. Based on the preliminary screening, it will be determined whether an environmental assessment (EA) or a resettlement action plan (RAP), or both, will be required. An assessment chart was finalized by BNC and approved by the Bank. Based on the preliminary screening, the BNC will request the municipalities or NIGETIP to include relevant terms of reference in the preliminary studies; the municipalities will implement the RAP with support from BNC; and the BNC will be responsible for the monitoring and the implementation of EAs and RAPS for all investments in the program. The Bank’s approval will be required for all activities implemented under the project involving resettlement and therefore the preparation of a RAP. Involuntary resettlement costs will be borne by the Republic ofNiger.
7. BNC will be responsible for the overall implementation of the ESMF and RPF recommendations. Consultants will be engaged to prepare Resettlement Action Plans and Environmental Management Plans (ESMPs) or Environmental Impact Assessments (EIAs) as and when necessary.
Focal point for Environmental and Social Management
8. The engineer at the BNC will act as the focal point person for environmental and social management. The BNC will prepare and submit to IDA the standard annex of the bidding documents concerning the ESMP, which will be part ofthe contractors’ financial offer. For any investment, the technical works contractors and supervisor will be required to designate a focal point person for the application of the provisions of the ESMP; these arrangements will be included in the contract.
Information, Education and Communication/Sensitization
9. The BNC will be responsible for the implementation of communication and sensitization campaigns on programs financed by the project before, during, and after the works, as part ofthe information, education and communication activities financed under the project.
84 Annex 11: Project Preparation and Supervision NIGER: Local Urban Infrastructure Development Project
Planned Actual PCN review 05/04/2006 05/10/2006 Initial PID to PIC 05/08/2006 07/2 012 006 Initial ISDS to PIC 05/08/2006 07/20/2006 Appraisal 02/04/2008 02/04/2008 Negotiations 04/02/2008 04/02/2008 Board approval 05/29/2008 Planned date of effectiveness 07/0 1/2008 Planned date of mid-term review 06/01/2010 Planned closing date 0 1/15/20 13
Key institutions responsible for preparation ofthe project: National Bureau of Coordination (Bureau National de Coordination - BNC) located in the Prime Minister’s Office
Bank staff and consultants who worked on the project included:
Name Title Unit Christian Diou Senior Municipal Engineer AFTU2 and Task Team Leader Sylvie Debomy Senior Urban Specialist AFTU2 Reliquet, Chantal Senior Urban Specialist AFTU2 Coulibaly, Zie Watedhfrastructure Specialist AFTU2 Casalis, Alicia Urban Infrastructure AFTU2 Specialist, Consultant Bertaud, H6lbne Senior Counsel LEGAF Chadab, Wolfgang Finance Officer LOAG2 Yaro, Mamadou Senior Financial Management AFTFM Specialist Olojoba, Africa Eshogba Senior Environmental AFTEN Specialist Seyni, Abdoul-Wahab Social Development Specialist AFTCS Yoboue, Eric Lead Procurement Specialist AFTPC Sanoussi, Ibrah Rahamane Procurement Specialist AFTPC Kok Shun, Connie Senior Program Assistant AFTU2 Soh, Alphonse Civil Engineer, Consultant AFTU2
85 Peer Reviewers: Freire, Maria Emilia Senior Adviser FEU Chavez, Roberto Urban Specialist LCSUW Choi, Songsu Lead Urban Economist SASDU Cira, Dean Sr. Urban Specialist EASUR Suzuki, Hiroaki Lead Operations Officer EASUR
Bank hnds expended to date on project preparation: Bank resources: US$15 1,000
Estimated Approval and Supervision costs: Remaining costs to approval: US$30,000 Estimated annual supervision cost: US$lOO,OOO
86 Annex 12: Documents in the Project File NIGER: Local Urban Infrastructure Development Project
1. StratCgie de Dkveloppement de Ville, Phase I1- Ville de Maradi - AoQt 2005 2. StratCgie de DCveloppement de Ville, Phase I1- Ville de Dosso - AoQt 2005 3. Etude de faisabilitk de la gestion des dechets mknagers ii Niamey et Maradi - Concept S.A. ERA International - Juillet 2007 4. Cadre de Gestion Environnementale et Sociale - Rapport final - Laouali Garba, Mai 2007 5. Cadre de Politique de RCinstallation des Populations - Rapport final - Abdoulaye Sene - Juillet 2007 6. Audit organisationnel et financier - CommautC Urbaine et des 5 communes de Niamey - FITECO- Mai 2007 7. Evaluation des capacitks de 1’Agence Nigkrienne des Travaux d’IntCrCt Public et pour 1’Emploi (NIGETIP) - H.A. Doutetien - Juin 2007 8. Evaluation des capacites des petites et moyennes entreprises du secteur des batiments et des travaux publics (PME-BTP) - H.A. Doutetien - Juin 2007 9. Audits organisationnel et financier des trois communes et de la CommunautC Urbaine de Maradi - Bureau d’Etudes en DCveloppement Organisationnel et Institutionnel (BEDOI) - Juin 2007 10. Actualisation des Audits organisationnel et financier de la Commune Urbaine de Dosso - Bureau d’Etudes en Dkveloppement Organisationnel et Institutionnel (BEDOI) - Juin 2007 11. Etude de faisabilitk en vue de 1’amClioration des conditions de vie dans certains quartiers prtcaires de Maradi, Dosso et la Commune V de Niamey - Rapport de prksentation du projet - version definitive - Daniel Arbours & AssociCs (DAA) - AoQt 2007 12. Etudes de faisabilitC d’amknagement de divers Cquipements marchands dans les villes de Dosso et Maradi - Rapport final - Groupement de Cabinet URBATEC - Cabinet MAINA - Septembre 2007. 13. Programme d’investissements prioritaires - Audits urbains et plan urbain de rCfCrence de la Commune Urbaine de Niamey - Urbaplan - Octobre 2007 14. Etude de faisabilitC de la gestion des dCchets mCnagers dans les villes de Niamey et Maradi - Concept S.A. Era International.
87 Annex 13: Statement of Loans and Credits NIGER: Local Urban Infrastructure Development Project
Difference between expected and actual Original Amount in US$ Millions disbursements Project ID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orin. Fm. Rev’d P103189 2007 3A-Africa Stockpiles1 MMT GEF (FY07) 0.00 0.00 0.00 13.40 0.00 9.22 0.00 0.00 PO94103 2007 3A-Telecommunications APL (FY07) 0.00 164.50 0.00 0.00 0.00 166.32 0.00 0.00 PO94084 2007 3A-W.Af Agric Prod Prgm APL WAAPP 0.00 45.00 0.00 0.00 0.00 45.85 0.00 0.00 (FY07) PO94917 2006 3A-WAPP APL 1 (CTB Phase 2) Project 0.00 60.00 0.00 0.00 0.00 60.45 0.00 0.00 PO94916 2006 3A-WAPP APL 2 (OMVS Felou HEP) 0.00 75.00 0.00 0.00 0.00 75.36 0.00 0.00 PO93826 2006 3A-SRB M. Water Res. Dvpt. APL (FY06) 0.00 91.96 0.00 0.00 0.00 117.23 4.00 0.00 PO83751 2006 3A-West &Central Afr Air Tran TAL 0.00 11.97 0.00 0.00 0.00 32.61 -1.53 0.00 (FY06) PO79734 2006 3A-E Afr Trade & Transp Facil (FY06) 0.00 184.02 0.00 0.00 0.00 167.99 13.88 0.00 PO75776 2006 3A-W Africa Stockpiles 1 GEF (FY06) 0.00 0.00 0.00 2 1.74 0.00 5.12 3.21 0.00 PO92473 2005 3A-Afr Emergency Locust Prj (FY05) 0.00 59.50 0.00 0.00 0.00 39.86 13.70 -4.14 PO70547 2005 3A-GEF Gmdwtr & Drght Mgmt TAL 0.00 0.00 0.00 7.00 0.00 6.35 1.56 0.00 (FY05) PO80413 2005 3A-HIV/AIDs Great Lakes Init APL 0.00 0.00 0.00 0.00 0.00 15.83 3.14 0.00 (FY05) PO80406 2005 3A-ARCAN SIL (FY05) 0.00 0.00 0.00 0.00 0.00 5.03 0.91 0.00 PO75994 2005 3A-WAPP Phase 1 APL 1 (FY05) 0.00 40.00 0.00 0.00 0.00 37.86 7.38 0.00 PO82613 2004 3A-Regional HIVAIDS Treatment Prj 0.00 0.00 0.00 0.00 0.00 29.89 23.68 0.00 (FY04) PO74525 2004 3A-WAEMU Capital Markets Dev FIL 0.00 96.39 0.00 0.00 0.00 98.46 74.31 42.94 (FY04) PO74850 2004 3A-HIVIAIDS Abidjan Lagos Tmspt 0.00 0.00 0.00 0.00 0.00 2.07 0.63 0.00 (FY04) PO70256 2004 3A-GEF Niger River Basin (FY04) 0.00 0.00 0.00 13.00 0.00 4.00 4.05 0.00 PO69258 2004 3A-Southern Afr Power Mrkt APL 1 0.00 178.60 0.00 0.00 0.00 191.46 166.18 0.00 (FY04) PO64573 2004 3A-GEF Senegal River Basin (FY04) 0.00 0.00 0.00 5.26 0.00 2.80 4.56 0.00 PO72881 2003 3A-BEAC Reg Payment System (FY03) 0.00 14.50 0.00 0.00 0.00 8.03 5.07 0.00 PO70252 2003 3A-GEF Lake Chad Basin (FY03) 0.00 0.00 0.00 2.90 0.00 1.72 2.90 2.25 PO70073 2003 3A-GEF Nile Transbound Env Action 0.00 0.00 0.00 8.00 0.00 8.04 13.47 0.00 (FY03) PO63683 2001 3A-Trade Facil SIL (FYOl) 0.00 5.00 0.00 0.00 0.00 4.85 -0.31 0.54 Total: 0.00 1,026.44 0.00 71.30 0.00 1,136.40 340.79 41.59
88 NIGER STATEMENT OF IFC’s Held and Disbursed Portfolio In Millions ofUS Dollars
Committed Disbursed IFC IFC FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic. 1999 AIF 0.00 16.83 0.00 0.00 0.00 0.3 1 0.00 0.00 1999 AIF (Mgmt) 0.00 0.06 0.00 0.00 0.00 0.00 0.00 0.00 2003 AIFH 0.00 18.25 0.00 0.00 0.00 0.03 0.00 0.00 2005 Afren 0.00 0.84 0.00 0.00 0.00 0.80 0,oo 0.00 2005 Africa Re 0.00 0.00 10.40 0.00 0.00 0.00 10.40 0.00 2002 Afncap 0.00 1.48 0.00 0.00 0.00 1.06 0.00 0.00 2006 Cape I1 0.00 9.62 0.00 0.00 0.00 3.00 0.00 0.00 2005 Celtel 0.00 11.83 0.00 0.00 0.00 11.83 0.00 0.00 2005 LFI 0.00 2.02 0.00 0.00 0.00 0.27 0.00 0.00 2004 Olam 30.00 5.60 0.00 0.00 30.00 5.60 0.00 0.00 2002 Osprey 0.00 0.01 0.00 0.00 0.00 0.01 0.00 0.00 2001 PAIP 0.00 27.27 0.00 0.00 0.00 8.62 0.00 0.00 2002 SABCO 0.00 10.00 0.00 0.00 0.00 10.00 0.00 0.00 2006 SABCO 20.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2006 Standard Bank GR 0.00 0.00 75.00 0.00 0.00 0.00 0.00 0.00 2004 Tullow 0.00 14.40 0.00 0.00 0.00 14.40 0.00 0.00 2006 Veolia Water AMI 44.62 31.87 0.00 0.00 0.00 0.00 0.00 0.00 Total portfolio: 94.62 150.08 85.40 0.00 30.00 55.93 10.40 0.00
Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic. 2006 ARECO 0.00 0.02 0.00 0.00 2006 Brait N 0.00 0.03 0.00 0.00 2004 BusPartners 0.00 0.00 0.00 0.00 2003 African Lakes 0.00 0.01 0.00 0.00 2006 ccs 0.02 0.00 0.00 0.00 Total pending commitment: 0.02 0.06 0.00 0.00
89 Annex 14: Country at a Glance NIGER: Local Urban Infrastructure Development Project
Niger at a glance 3/21/08
Sub- Key Development Indicators Saharan LOW Age dlrtributlon, 2008 Niger Africa Income (2006) I Male Female Population, mid-year (millions) 14.4 770 2,403 70-74 Surface area (thousand sq. km) 1,267 24,265 29,215 80-84 Population growth (%) 3.3 2.3 1.8 50-54 Urban population (% of total population) 17 36 30 4044 30-24 GNI (Atlas method, US$ billions) 3.7 648 1,562 GNI per capita (Atlas method, US$) 260 842 650 20-24 GNI per capita (PPP, International $) 830 2,032 2,696 10-14 M GDP growth (%) 5.2 5.6 6.0 30 20 10 0 10 20 30 GDP per capita growth (%) 1.8 3.2 6.1 percent
(most recent estimate, 200&2006)
Poverty headcount ratio at $1 a day (PPP, X) 61 41 Under-5 mortality rate (per 1,000) Poverty headcount ratio at $2 a day (PPP, %) 86 a 72 Life expectancy at birth (years) 45 47 59 350 infant mortality (per 1,000 live births) 150 96 75 Child malnutrition(% of children under 5) 40 29 300 250 Adult literacy, male (% of ages 15 and older) 43 69 72 200 Adult literacy, female (% of ages 15 and older) 15 50 50 150 Gross primary enrollment, male (% of age group) 54 96 108 1W Gross primary enrollment, female (% of age group) 39 86 96 50 Access to an improvedwater source (% of population) 46 56 75 0 1880 1885 2wo 2w5 Access to improved sanitation facilities (% of population) 13 37 38
ONlger OSubSahamn Afnca
Net Aid Flows 1980 1990 2000 2008
(US$ millions) Net ODA and official aid 165 388 208 515 Growth of GDP and GDP per capita (%) Top 3 donors (in 2005): France 49 80 41 70 United States 9 31 5 31 11+10 Germany 22 39 12 25 6 Aid (% of GNI) 6.7 16.0 11.7 15.2 0 Aid per capita (US$) 27 46 18 37 5 -10 Long-Term Economic Trends 85 00 05 Consumer prices (annual % change) -2.9 2.9 0.3 GDP implicit deflator (annual %change) 20.8 -1.6 4.5 1.8 -GDP per capita Exchange rate (annual average, local per US$) 211.3 I"%..; 272.3 712.0 522.9 Terms of trade index (2000 = 100) 152 100 95 1980-90 1990-2000 2000-08 (average annual growth %) Population, mid-year (millions) 6.2 8.5 11.8 14.4 3.1 3.3 3.4 GDP (US$ millions) 2,509 2,481 1,798 3,597 -0.1 2.4 3.9 (% of GDP) Agriculture 45.4 36.2 38.7 40.9 1.7 3.0 6.4 Industry 24.2 16.8 16.2 17.2 -1.7 2.0 3.1 Manufacturing 3.9 6.8 7.0 6.7 -2.7 2.6 3.9 Services 35.8 49.9 45.4 44.5 -0.7 1.9 3.7
Household final consumption expenditure 75.1 83.8 83.4 80.8 -0.6 1.5 General gov't final consumption expenditure 10.4 15.0 13.0 11.7 4.4 0.8 Gross capital formation 26.1 8.1 11.4 16.9 -7.1 4.0
Exports of goods and services 24.6 15.0 17.8 15.4 -2.9 3.1 Imports of goods and services 36.1 22.0 25.7 24.8 -6.3 -2.1 Gross savings 17.1 -2.1 2.8 12.2
Note: Figures in italics are for years other than those specified. 2006 data are preliminary. .. Indicates data are not available. a. Country poverty estimate is for earlier period. b. Aid data are for 2005.
Development Economics, Development Data Group (DECDG). 90 Niaer
Balance of Payments and Trade 2000 2006 IGovrmance Indicators, 2000 and 2006 (US$ millions) Total merchandise exports (fob) 283 438 Total merchandise imports (cif) 402 830 Voice and accountability Net trade in goods and services -135 -409 Polltical stablllty Current account balance -147 397 as a % of GDP -8.2 -11.0 Regulatory quality Rule of law Workers' remittances and compensation of employees (receipts) 14 60 Control of corruption Reserves. Including gold
2006 Country's percentile rank (0-100) Central Government Finance 02000 hghw values imply benw mlrgs (% of GDP) Current revenue (including grants) 10.3 11.5 Sovrca: Kaufmann-Kraay-MBzzl, WoM Bank Tax revenue 8.0 10.1 Current expenditure 11.2 10.8 Technology and Infrastructure 2000 2005 Overall surpluddeficit -5.7 -8.5 Paved roads (Oh of total) 7.9 25.0 Highest marginal tax rate (%) Fixed line and mobile phone individual subscribers (per 1,000 people) 2 23 Corporate High technology exports (% of manufactured exports) 3.0 3.2 External Debt and Resource Flows Environment (US$ millions) Total debt outstanding and disbursed 1,677 820 Agricultural land (Oh of land area) 30 30 Total debt service 26 58 Forest area (% of land area) 1.0 1.0 Debt relief (HIPC, MDRI) 798 489 Nationally protected areas (Oh of land area) .. 7.7
Total debt (% of GDP) 93.2 22.8 Freshwater resources per capita (cu. meters) .. 251 Total debt service (% of exports) 7.4 10.0 Freshwater withdrawal (% of Internal resources) 62.3
Foreign direct investment (net inflows) 6 0 C02 emissions per capita (mt) 0.10 0.09 Portfolio equity (net inflows) 1 0 GDP per unit of energy use (2000 PPP $ per kg of oil equivalent) IComposition of total external debt, 2006 I Energy use per capita (kg of oil equivalent)
IMF 26 (US$ millions)
IBRD Total debt outstanding and disbursed - 0 Disbursements - 0 Principal repayments - 0 Interest payments - 0 Other rnuni- lateral. 348 IDA Total debt outstandingand disbursed 723 182 Disbursements 68 51 Private Sector Development 2000 2006 Total debt service 14 13 Time required to start a business (days) - 24 IFC (f/sca/ year) Cost to start a business (% of GNI per capita) - 416.8 Total disbursed and outstanding portfolio 0 0 Time required to register property (days) - 49 of which IFC own account 0 0 Disbursements for IFC own account 0 0 Ranked as a major constraint to business Portfolio sales, prepayments and (% of managers surveyed who agreed) repayments fur IFC own accwnt 0 0 Tax rates .. 32.8 Anticompetlive or informal practices .. 20.8 MlGA Gross exposure - - Stock market capitalization (% of GDP) New guarantees - - Bank capital to asset ratio (%)
Note: Figures In italics are for years other than those specified. 2006 data are preliminary 3/21/00 .. indicates data are not available. -indicates observation is not applicable.
Development Economics, Development Data Group (DECDG).
91 Millennium Development Goals Niger
With selected targets to achieve between 1990 and 2015 (estimate closest to date shown, +/- 2 years)
Goal 1: halve the rates for SI a day poverty and malnutrition 1990 1995 2000 2005 Poverty headcount ratio at $1 a day (PPP. % of population) 41.7 60.6 Poverty headcount ratio at national poverty line (% of population) 63.0 Share of income or consumption to the poorest qunitile (%) 7.5 2.6 Prevalence of malnutrition (% of children under 5) 42.6 40.1
Goal 2: ensure that children are able to complete primary schooling Primary school enrollment (net, %) 22 25 40 Primary completion rate (X of relevant age group) 15 13 17 28 Secondary school enrollment (gross, %) 6 6 9 Youth literacy rate (% of people ages 15-24) 37
Goal 3: eliminate gender disparity in education and empower women Ratio of girls to boys in primary and secondary education (%) 57 69 72 Women employed in the nonagricultural sector (% of nonagricultural employment) 11 9 9 8 Proportion of seats held by women in national parliament (%) 5 1 12
Goal 4: reduce under-5 mortality by two-thirds Under-5 mortality rate (per 1,000) 320 295 270 256 Infant mortality rate (per 1,000 live births) 191 176 159 150 Measles immunization (proportion of one-year olds immunized, %) 25 40 34 83
Goal 5: reduce maternal mortality by three-fourths Maternal mortality ratio (modeled estimate, per 100,000 live births) 1,600 Births attended by skilled health staff (% of total) 15 16
Goal 6: halt and begln to reverse the spread of HlVlAiDS and other major diseases Prevalence of HIV (% of population ages 15-49) 1.1 Contraceptive prevalence (% of women ages 15-49) 4 14 Incidence of tuberculosis (per 100,000 people) 128 139 151 164 Tuberculosis cases detected under DOTS (%) 29 38 50
Goal 7: halve the proportion of people without sustainable access to basic needs Access to an improved water source (% of population) 39 42 44 46 Access to improved sanitation facilities (% of population) 7 9 11 13 Forest area (% of total land area) I.5 1.o 1.o Nationally protected areas (% of total land area) 7.7 C02 emissions (metric tons per capita) 0.1 0.1 0.1 0.1 GDP per unit of energy use (constant 2000 PPP $ per kg of oil equivalent)
Goal 8: develop a global partnership for development
Fixed line and mobile Dhone subscribers ioer.I 1.000. .,,DeoDlel 1 1 2 23 Internet users (per I.OOO people) 0 0 0 2 Personal computers (per 1,000 people) 0 0 1 Youth unemployment (% of total labor force ages 15-24)
Measles immunization (% of 1-year olds) CT indicators (per 1,000 people)
75- - n 20301 10
zwo zw2 zm 0 1880 1895 2Mo 2ws 2ow zw2 2035 --O-Primary net enroliment ratio OFixed + mbile subscribers +Ratio of girls to boys in primary & 0 Niger oSub-Saharan Africa secondary education Internet users
Note: Figures in italics are for years otherthan those specified. .. indicates data are not available. 3/21/08
Development Economics, Development Data Group (DECDG).
92 10°E 15°E NIGER LIBYA LOCAL URBAN INFRASTRUCTURE To Djanet To Tajarhi DEVELOPMENT PROJECT ALGERIA NIGER PROJECT CITIES
SELECTED CITIES AND TOWNS Madama DEPARTMENT CAPITALS NATIONAL CAPITAL RIVERS MAIN ROADS
DEPARTMENT BOUNDARIES T
é To Tamanrasset INTERNATIONAL BOUNDARIES n 20°N
Mont Greboun é (1,944 m ) AGADEZ r
This map was produced by the Map Design Unit of The World Bank. é The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any A i r M t s . D endorsement or acceptance of such boundaries. Bilma Arlit e
0 50 100 150 200 Kilometers s
e
0 50 100 150 Miles r t
MALI Agadez Ingal TAHOUA DIFFA
To Tchin- Gao Tabaradene
15°N ZINDER CHAD Tahoua Tanout 15°N Keïta TILLABÉRI Illéla To Tillabéri Bouza Dakoro Ouahigouya Nguigmi Téra Filingué N S a h e l s. i MARADI t g Gouré e Birnin M r a NIAMEY Konni ng Zinder a NIAMEY Aguié M Kollo Maïné- Diffa Maradi Soroa Dosso 1963 Level To Magaria 1973 Level Lake DOSSO Kontagora 2001 Level Chad OCTOBER 2007 BURKINA IBRD 35731
FASO To Ouagadougou NIGERIA To Kaduna 0° BENIN 5°E 10°E 15°E