Document of The World Bank Public Disclosure Authorized Report No. T7549
TECHNICAL ANNEX
TO THE
Public Disclosure Authorized MEMORANDUM OF THE PRESIDENT
OF THE
PEOPLE'S DEMOCRATIC REPUBLIC
OF ALGERIA
FOR AN
URBAN NATURAL HAZARD
Public Disclosure Authorized VULNERABILITY REDUCTION PROJECT
July 18, 2002
Finance, Private Sector and Infrastructure Middle East and North Africa Region Public Disclosure Authorized
2
TABLE OF CONTENTS
I INTRODUCTION ...... S5 2 PROJECT OBJECTIVE AND COMPONENTS ...... 5 2.1 STUDIES AND INSTITUTIONAL ARRANGEMENTS ...... 7 2.2 TRAINING ...... 7 2.3 EQUIPMENT ...... 8 3 COMPONENT 2: EMERGENCY PHYSICAL WORKS ...... 11 3.1 HYDRAULIC WORKS CONSTRUCTION IN THE BASIN SIDE OF OUED KORICHE ...... 11 3.2 REMEDIAL RAINFLOW MEASURES FOR THE OUEDS OF THE MASSIF OF BOUZAREAH ...... 11 3.3 TREE PLANTING IN THE OUED KORICHE BASIN AND ITS CHANNELS ...... 11 3.4 HOUSING ...... 12 4 COMPONENT 3: PROJECT MANAGEMENT ...... 16 4.1 STUDIES AND TECHNICAL ASSISTANCE ...... 16 5 INSTITUTIONAL ARRANGEMENTS: PROJECT IMPLEMENTATION ...... 19 RESPONSIBILITIES .. 19 5.1 GENERAL PRINCIPLES .19 5.2 . THE DIFFERENT PARTIES INVOLVED AND THEIR RESPECTIVE ROLES .19 5.3 PROJECT MANAGEMENT, COORDINATION AND MONITORING .20 6 PROCUREMENT AND DISBURSEMENT PROCEDURES ...... 23 6.1 PROCUREMENT ...... 23 6.2 MODALITIES FOR PROCUREMENT REVIEWS ...... 23 6.3 PROCUREMENT METHODS (SEE TABLE A) ...... 24 6.4 INTERNATIONAL SHOPPING ...... 24 6.5 NATIONAL SHOPPING ...... 24 6.6 WORKS ...... 25 6.7 PROCUREMENT OF SMALL WORKS ...... 25 6.8 CONSULTANT SERVICES ...... 25 7 DISBURSEMENT ...... 33 7.1 SPECIAL ACCOUNT (SA): ...... 33 7.2 USE OF STATEMENT OF EXPENDITURE (SOES): ...... 33 7.3 RETROACTI-VE FINANCING ...... 33 7.4 INFORMATION FLOW ...... 34 8 FINANCIAL MANAGEMENT ...... 36
8.1 GENERAL VIEW ...... 36 8.2 FINANCIA MIAGEMENTL (FM) ASSESSMENT ...... 36 8.3 ACCOUNTING6,Y5STEM ...... 37 8.4 PROCEDURES OF INTERNAL CONTROL ...... 37 8.5 FLOW OF FUNDS ...... 37 8.6 FINANCIAL MONITORING REPORTS ...... 38 8.7 AUDIT ...... 38 3
8.8 RISKS ...... 38 ATTACHMENT 1: THE SOCIOLOGICAL FEATURES OF THE AFFECTED POPULATION ...... 40 ATTACHMENT 2: ENVIRONMENTAL MANAGEMENT ...... 50 ATTACHMENT 3: REINFORCING THE COUNTRY CAPACITIES TO FACE NATURAL DISASTERS 52 ATTACHMENT 4: INFRASTRUCTURE ...... 54 ATTACHMENT 5: HOUSING ...... 58 kTTACHMENT 6: PROJECT COST, DISBURSEMENT AND FINANCIAL MANAGEMENT ...... 62 4
SECTION 1
]NTRODUC71ON AND OBJECTIVES OF THE PROJECT
PEOPLE'S DEMOCRATIC REPUBLIC OF ALGERIA
URBAN NATURAL HAZARD VULNERABILITY REDUCTION PROJECT
1 INTRODUCTION
On November 10 and 11, 2001, Algeria was hit by flooding of unprecedented proportions particularly the region of Algiers. Most devastated were a dozen municipalities located largely in Bab El Oued. More than 800 people were killed in the region of Algiers alone; property damage is estimated at $US400 million (minimum). The Wilaya of Algiers took immediate emergency measures, with support from various administrations, public agencies, and the population that brought temporary relief to the affected population and somewhat mitigated the immediate impact of the flooding. However, the flooding highlighted the vulnerability of urban areas to natural disasters, and the need to reduce this vulnerability by introducing medium and long-term disaster mitigation measures, both at the national level and at the local level, particularly in Algiers.
2 PROJECT OBJECTIVE AND COMPONENTS
This project will have two main objectives: a) To improve the ability of Algerian institutions at the national level to cope with natural disasters by developing their monitoring capacity, the early warning system, their understanding of the meteorological phenomena that led to the November 10, 2001 floods, by improving the means of intervention by social protection organization, and by developing detailed plans to reduce the vulnerability of urban zones in the Wilaya of Algiers; and b) To address specifically the vulnerability of the urban zones most seriously affected by the flooding of November 10, 2001. The objective of this project is particularly to reduce the risks incurred by the population of these zones, some 30,000 people, and to provide indirect protection to more than 250,000 people living in downstream districts, sites of ancient urbanization. . The measures to be developed will contribute to resolving the currently serious problems of pollution and erosion. This accords with one of the objectives of the Algerian Government, to improve in a sustainable manner the conditions of life of the population affected by the disaster and of those located downstream that could face similar risks.
As a result, the project will have two key components, each of them directly linked to the above-mentioned objectives.
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SECTION 2
COMPONENT 1: DISASTER MANAGEMENT CAPACITY BUILDING
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2. COMPONENT 1: capacity Building AT THE NATIONAL LEVEL
The objectives of this component are two-fold: (a) to reinforce national capacity to face unavoidable natural disasters, and minimize their consequences; and (b) to improve the ability to anticipate disasters by setting up a monitoring and early warning system. The lessons learned from the accumulated experience in disaster management in Algeria (i.e. Mascara and Ain- Temouchent) and the ongoing activities under the Bank-financed Ain-Temouchent Project were taken into account in designing this component which includes the following studies and activities for institutional strengthening:
2.1 STUDIIES AND INSTITUTIONAL ARRANGEMENTS a) Preparatory study, design and implementation of an integrated monitoring and early warning system for meteorological risks in the Wilaya of Algiers, with a view to expanding it nationwide. The terms of reference of the survey have been defined. The terms of reference target institutional, organizational and technical measures for the National Meteorological Office (ONM) to improve monitoring, warning and information. b) Scientific study to understand the natural phenomenon causing the November 2001 floods toward increasing forecasting capacity. This study aims at informing the authorities and the scientific community on the real reasons behind the disaster to improve disaster-forecasting capacities; c) Study of vulnerable sites in the Wilaya of Algiers (excluding the Bouzareah massif). The purpose of this study is to identify, appraise and outline solutions to risks threatening zones in Algiers. (Bouzareah, another vulnerable area, is the subject of a specific study). Risks to be addressed in the study relate to flooding, crumbling, landslides, seismic tremors and pollution. The study will outline solutions to reduce these risks, to limit their impacts, and to facilitate the rescue of victims of natural disasters. The zones that would be covered by this survey tentatively include the following: Hamiz Oued located in East Algiers; Oued El Harrach; Ouchaiah Oued; Kniss Oued and the Telemly landslide-prone zone located in downtown Algiers. These zones are known to be high-risk, however the preliminary phase of the study will determine the priority zones with the highest level of risk. d) Global integrated study to reduce vulnerability and address the catchments basins in the Bouzareah massif. The objective of this study is to identify and evaluate possible mitigation measures for risk reduction in Algiers outside the Bouzareah Massif watershed (the subject area of the scientific study above).
This project sub-component will be carried out in two stages ending with a detailed action plan to render the concerned zone less vulnerable.
2.2 TRAINING
Training activities target the National Directorate of the Civil Protection (DGPC), the National Agency of Water Resources (ANRH) and the National Meteorology Office (ONM). The Algerian authorities are seeking sources of financing (grants or confessional loans) that could eventually complete, or even to partly replace the World Bank financing if the need arises. They 8 have therefore asked the Bank to help identify other sources of financing for this training. The following institutions will benefit from the training: a) DGPC. Specialized training envisaged in disaster management Will essentially apply to training of trainers at the National School for Civil Protection. This training will be provided by Algerian institutions, Which will seek support from international experts. If need be, short-term training sessions will be organized abroad in specialized institutions. b) ANRH. This training is for capacity building in production of documents necessary for flood modeling and simulation (land numeric models, ortho-photographs, flood area maps, micro- zoning etc.) using aerial and satellite imagery. It essentially requires advanced specializations for engineering school graduates that can be undertaken in a short period of time (less than 4 weeks) using Geographical Information System software (GIS) and software for medium and high resolution aerial and satellite imagery. Algerian institutions will provide this training with the assistance of international experts. c) ONM. The strengthening of capacities relates, first and foremost, to personnel involved in numeric weather forecasting and its application to extreme meteorological conditions; The interpretation of meteorological phenomena and satellite imagery and its practical application are relatively complex technologies. ONM staff needs to upgrade their skills in fine-grid modeling, through specialized training in interpretation of different data types and modeling and simulations.
2.3 EQUIPMENT The equipment necessary to strengthen the institutions involved will be procured under the project. a) ONM. Equipment is needed to enhance ONM weather-forecasting abilities. The replacement of the Algiers radar by a long-range Doppler radar will permit a refinement of the grids (that will be brought back to 5 km). The network of automatic stations covering the Algiers region, under the authorities of the Wilaya of Algiers, will constitute an urban network of meteorological observation posts that will permit better tracking of meteorological phenomena in progress, and monitor their intensity.
The integration of radar and satellite data will provide finer grids capable of generating finer-scaled weather numeric forecasting and will require a more powerful. The necessary software can be acquired gratis within the framework of donor cooperation. b) DGPC. Equipment to support the DGPC was identified from the experience of managing the aftermath of the November 2001 flooding.
i) Water and mud evacuation equipment: muddy water in buildings could not be drained through existing means.
ii) Excavation equipment: The available equipment was useless to open up access for first-aid workers and for removal of debris in narrow alley networks. The project will therefore provide small caterpillars specifically for this purpose. 9
iii) Lighting equipment and on-site energy production: indispensable materials for night operations, for the connection and the use of equipment. The DGSN lighting vehicle was the only one that enabled night rescue operations following the events of November 9-10, 2001.
iv) Aquatic rescue equipment: to recover vehicles and passengers that have been swept away or trapped by floodwaters.
v) Emergency rescue equipment and emergency medicine: to enable onsite first aid to the severely wounded where evacuation is hampered by disrupted or difficult access.
vi) Strengthening information technology: The National Directorate of Civil Protection has set up a Geographical Information System unit (GIS) whose activity will be geared to risk prevention and to planning rescues for both natural and industrial disasters, to be strengthened by complementary software and data. At the beginning, this unit will concentrate on mastering the modem tools of geographical data processing, an essential component of Information Technologies. c) Computer software to strengthen ANRH: ANRH is responsible for assessment and monitoring of water resources and must produce key information from the Integrated Monitoring and Early Warning system. This information will be produced in different forms: production of Land Numeric Models (DTM), Ortho-photographs and designs reproduced at higher scales for risk zones by means of aerial and satellite imagery. They will model and simulate scenarios for different levels of rainfall. ANRH already has the computer hardware, and the project will provide the necessary software.
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SECTION 3
2OMPONENT 2: EMERGENCY PHYSICAL WORKS
3 COMPONENT 2: EMERGENCY PHYSICAL WORKS
The zone of intervention comprises 12 communes', mostly in the jurisdiction of Bab El Oued. This area was the site of the most devastation in terms of deaths as well as the volume of physical and material destruction, including basic infrastructure such as roads, water purification and distribution networks, socio-cultural facilities such as schools, health centers, training centers and sport facilities and cultural heritage sites. The purpose of this component is to undertake urgent physical works to restore these services and facilities.
3.1 HYDRAULIC WORKS CONSTRUCTION IN THE BASIN SIDE OF OUED KORICHE
The construction of flood retention basins at the interception points of various streams connecting in Oued Koriche is planned to reduce the water levels. Their size will be dependent on the land available, site topography, the nature of the soil and the quantity of water flowing through of each Oued [wadi]. The precise sites, the number, measurements, and other features of these basins will be determined by the computer simulation planned during the first phase of the "Global Integrated Study for the Reduction of the Vulnerability and Treatment of the Basin Side of the Bouzareah massif." At first, it is estimated that the project will cover the construction of 10 basins with a flood retention capacity of about 10,000 m3 (in Baranes, Sidi Medjbar, Frais Vallon, Beau Fraisier, Scat and Oued Koriche) and a new water collector on the basin of the Frais Vallon. The project will also build a channel in the sub-basin of Beau Fraisier Oued and recalibrate the downstream section of Beau Fraisier Oued in order to improve the conditions of water out-flow in the sub-basin side. The measurements of these channels will also be determined by the above-referenced study.
3.2 REMEDIAL RAINFLOW MEASURES FOR THE OUEDS OF THE MASSIF OF BOUZAREAH
To limit the water flow in the Bouzareah massif, it is necessary to make some corrective adjustments to the rivers (Oued Deux Moulins, Oued of the Zouaves, Oued Ravine Staura, Oued Sidi El Keibir, Oued Le Plateau,. Oued Beau-Sejours, Oued Baranes and Oued La Vigie, and others). The proposed works in this project aim at adjusting the slope of the Oueds to reduce the speed of water discharge and the quantities of mud carried. The works consist of constructing earthworks and drains in selected sections of the Oueds and banks threatened with crumbling. The works will also clean the riverbeds of debris and restore their contours.
3.3 TREE PLANTING IN THE OUED KORICHE BASIN AND ITS CHANNELS
In order to slow down outflow, encourage soil flood retention and to protect against erosion, the Project plans to continue planting of forests on public lands and fruit trees on private lands. This planting will be concentrated on the basin of the Oued Koriche, and will cover an area of about 600 ha (Planting of forest trees over 360 ha and planting of fruit trees on 240 ha).
X These include the following: Bab El Oued, Oued Koriche, Bologhine, Rais Hamidou, Hammamet, Ain Benian, Bouzareah, El Biar, Sidi M'Hamed, Alger Centre, El Madania, El Mouradia 12
3.4 HOUSING The objective of this subcomponent is to finance the cost of housing, infrastructure, and services for 5,000 units of "social rental housing" in Algiers. Its main purpose is to rehoused since these people: (a) have been affected by the November 10, 2001 flood; or (b) live on vulnerable sites inside or close to the Bouzareah Massif, thus exposed to risks. Five thousand eligible families were identified by the Algerian authorities in accordance with governmental Decree on distribution of public housing Ministerial Decree 98-42). The more than 1,500 families re-housed by the Algerian authorities just after the disaster, in available public housing, are outside the scope of the present project. [The criteria of eligibility for the social housing progran apply to recipients whose income is below twice the minimum wage (SNMG or the National Guaranteed Minimum Salary, which was 16,000 DA, at the time of the assessment of this project)]. The project will build on and support the following institutional and legislative arrangements and procedures: a) Administrative, functional and technical controls. Regulations and a set of procedures outlined in the following govern the activities of agencies implementing the project, especially for housing construction:
b) The Ministry of Housing. This Ministry defines housing policy, determines public housing construction programs, and provides credits to the planned operations in the State budget. The annual appropriations bill, using the principle of final competition, covers planned social housing financing in chapter 722 and land development in chapter 721. . Once the financing is secured, the Ministry notifies the Wilayas of the budget appropriation decisions. Finally it releases the credits for payment.
In addition, the Ministry plans the plot sizes, the types, and the prices of the planned housing. Reference prices, norms of quality, and types serve as a basis for programs.
Reference prices are established after an analysis of the bid prices in every region of the country (for examnple, the price per square meter for a social rental housing currently ranges between 16,000 in 18,000 DA in Algiers including designs and supervision). For this project, considering family composition, the average norm chosen by the Direction of the Housing of the Wilaya of Algiers corresponds to the F3 type (three rooms), of 60 square meters. The net construction cost is estimated by the administration to be 16,000 DA /m2.
c) The CTC (Construction- Technical Control Agency) - Its intervention is obligatory to provide insurance coverage in Algeria. Recently, the CTC's statutes have evolved, changing it from a public monopoly under the umbrella of the Ministry of Housing to an oligopoly under private law. Through decentralization and then privatization, the CTC has evolved into a number of companies (CTC Center, CTC South, CTC West, and CTC East) that operate as independent research departments, which compete with each other nationwide.
d) The EDE (Earthquake Detection Engineering Center) is a State-subsidized research center. of experts devoted to analysis of seismic risk and the study of micro zoning. It offers consulting services and provides its opinion on the viability of the sites to be used for apartment construction programs as far as seismic risk, geomorphology and geo-technical conditions are concerned (i.e., upon consulting the report of the soil survey).
e) Procurement Boards- these committees/boards are entrusted with the responsibility of controlling procurement undertaken by implementing agencies, under the terms of the Algerian 13 regulations and in conformity with the World Bank procurement procedures. More specifically, the following procurement controlling authorities will participate within the framework of this project. For the Wilaya of Algiers, the jurisdiction of the procurement committees/boards depends on the amount involved as outlined in the following:
Procurement under 4 million DA: Internal Committee; Procurement between 4 million DA and 200 millions DA: Committee of Wilaya; and Procurement above 200 million DA: National Procurement Commission.
Wilaya of Algiers < 4 MDAs 4MDa < Amount < 200 M DA Works, ( Works) 200 60 MDA Studies Wilaya of Algiers < 4 MDAs 4MDa < Amount < 60 200 NDA Works, (Studies) 60MDa Studies Wilaya of Algiers Internal committee of Committee of Wilaya National Commission the Directorate
DGPC < 12 MDAs > 12 MDA, <60 MDAs >200 MDA (Works) or 200 MDAs (Works) >60 MDAs (Study) DGPC Internal Commission Commission Ministry National Commission of Interior ONM < 4MDa < 200 MDAs works, 60 >200 MDAs works, 60 MDA Studies MDA Studies ONM Internal: letter of Order. Commission National Procurement ONM /Ministry of Commission Transportation f) Contracting Authority and Project Manager. The implementing agency for Component 2 will be the Wilaya of Algiers irrespective of the subcomponent. The Wali will delegate implantation according to the nature of the subcomponent to the concerned sectoral director of the Wilaya (for example Directorate of Housing, Direction of the Hydraulics, Forests Conservancy of the Wilaya of Algiers). g) Project Management for the Construction of 5,000 Apartments- 5,000 apartments will be distributed on the 6 selected sites. - The sites will be grouped into two lots by proximity to one another. A consulting firm will be hired as project manager to supervise the entire process of construction on the two sites. It will be in charge of (i) technical supervision and coordination between the designs and works; (ii) preparation of bidding documents; and (iii) supervision of implementation progress, and intervention in case of litigation. Each site will be divided into two parcels; each parcel will comprise 300 to 400 units to be assigned to an architecture firm. Then, the result will be 3 consulting firms, and from 25 to 35 to an architecture firm for all the sites resulting in a total of about 30 selected Project Managers (from 30 separate biddings). h) The notion of a Lead Architect has been introduced in this program to ensure a better coordination, piloting, and an operational follow-up with the different actors who intervene for the studies and the realization of the project.
These consulting firms or Lead Architects will undertake the operations in coordination with the consulting firms dealing with architecture, engineering and the follow-up. 14
Thus, the accredited architect consulting firns will ensure technical, architectural, engineering designs as well as supervision. They will be entrusted with the following tasks:
a) Detailed technical, architectural, and engineering designs in accordance with the specifications; b) Preparing the notices relative to bidding; c) Assisting the Contracting Authority in the analysis of the bids; d) Contracting and supervision of works.
Each of these parcels, covering 300 to 400 apartments, will be assigned to one consulting firm. Twelve architecture-consulting firms, and three lead architects /architect advisor will ensure project management. A single consulting architect may be considered for the whole operation.
As far as the works are concerned, it is expected to contract between 150 to 200 apartment projects per enterprise except some contracts of a lesser consistency with 25 to 30 units in total.
Concerning land development, only one enterprise will be retained per site, except for the largest sites. If necessary, there will be a recommendation of 2 or 3 enterprises per site, which means about 8 contracts for the provision of all the sites with services.
This procedure does not exclude having recourse to a group of enterprises should there be a risk of not finding enough enterprises capable of handling large construction sites, thus resulting in a fruitless bidding.
This would have serious consequences on the implementation calendar. The Wilaya of Algiers is conscious of the fact that such a number of contracts may impose a very strong workload on its teams. The Wilaya has, therefore considered in the event the need arises, to seek technical support to reinforce its management capacities for the apartment construction program. The implementation according to the work plan will remain the determining factor in the decision of the Wilaya. 15
SECTION 4
PPROJECT MANAGEMENT
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4 COMPONENT 3: PROJECT MANAGEMENT
The third component of the project will require the Algerian authorities to implement the project. This component will deal with the financing of equipment acquisition and the technical assistance (hiring of consultants) to support the authorities in carrying out the functions below:
4.1 STUDIES AND TECHNICAL ASSISTANCE
4.1.1 Component 1
Sub-component 1
(a) The study and the establishment of the rapid and early warning system have the following objectives: i) developing the capacities of coordination among institutions; ii) enhancing information and communication; iii) determining the levels of risks and vulnerabilities of the communities and their properties; iv) establishing the action plans and the simulations of coordinated intervention scenarios; v) reviewing their performance periodically; f) determining the responsibilities and the initiatives of the actors; and g) elaborating post-disaster risks management scenarios.
(b) Two studies on vulnerability will outline solutions to situations of strong potential risks that threaten some zones of the whole Wilaya of Algiers (treated in the first survey of vulnerability) and the massif of Bouzareah in particular (treated in the second survey). Thus, these two studies will define the nature of the corrective measures for Algiers or those measures selected on a priority basis for the protection of the Bouzareah massif against the risks of floods and seismic vibrations.
(c) Finally, the scientific survey on the phenomenon that led to the disaster of November 9/10 2001 aims at increasing the capacities of forecasting of the engineers of the National Meteorology Office, which is entrusted with weather forecasting in the country. This survey includes the treatment and the analysis of data.
Sub-Component 2
The second subcomponent deals with the different types of training: (This is completely in compliance with the objective of the sub-component 1).
(a) Short-term training concerning handling of equipment and software, for the mastery of the new technologies such as those related to the interpretation of the radar information or satellite imagery.
(b) Training of trainers programs for the schools of the selected institutions (implementation agencies) such as the ONM, the ANRH or the DGPC or for reinforcing their educational programs. 17
4.1.2 Component 2
This component of emergency works consists of the studies necessary for the realization of works. Apart from the preliminary steps and studies, the numerous and important studies, in terms of cost, deal with the following: geodetic surveys by surveyors, topographic survey, soil study, and social assessments; a) The designs, supervision and allocation control of the 5,000 apartments units to be built for the re-housing of the disaster victims and related infrastructures (ground and buried networks, landscape amenities, school infrastructure and areas there). The other subcomponents concerning predominantly hydraulic works and forestation include two main studies: b) The design and the supervision of 10 basins of flood storage in the basins side of the massif of Bouzareah; and of c) The water pipes of Oued Beau-Fraisier.
4.1.3 Component 3
Strengthening project management capacities at the Wilaya level and at other agencies level. This component includes training and technical support aspects notably to be undertaken by consultants who have been identified, apart from those whose task is to increase the capacity of evaluation and implementation of plans in the areas of the following:
(a) Environmental management (beneficiaries: inspection of the environment of the Wilaya); (b) Procurement; and (c) The establishment of the financial management and reporting system, based on the same software (purchase, installation, and training) utilized in the five previous projects financed by the Bank. 18
SECTION 5
INSTITUTIONAL ARRANGEMENTS: PROJECT IMPLEMENTATION RESPONSIBILITIES
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5 INSTITUTIONAL ARRANGEMENTS: PROJECT IMPLEMENTATION RESPONSIBILITIES
5.1 GENERAL PRINCIPLES
Since many entities intervene during the ploject implementation, the Algerian government plans to define the principles and the modalities according to which these responsibilities will be clearly articulated. In a more precise way, the four following basic principles apply: a) Implementation of the different operational components of the project will be made by the regular execution agencies in accordance with their prerogatives; b) Particular at.ention will be given to the rapid and diligent execution of this emergency project. It will be ensured mainly through setting up the processes of supervision, coordination and control; but also through the effective involvement of the high-level State staff to monitor the project implementation; c) The handling and the re-housing of the families affected by the disaster and eligible to the relocation according to the regulation in force relative to this project, constitute an aspect that requires a particular attention. Resettlement Action Plan Framework (RAP) outlines specifically the way in which such an aspect will be implemented. This Plan as well as the implementation arrangements are part of the Project Implementation Mlanual and will thus be closely coordinated with the other aspects ot' the project; and d) Since this project is executed with the financial support of the World Bank, the Algerian authorities fully understand related obligations. Therefore, the Borrower agrees to implement the project while respecting the conditions pertaining to the fiduciary obligations of the World Bank on Procurement, Disbursement, protection of the environment, social aspects, and resettlement.
5.2 THE DIFFERENT PARTIES INVOLVED AND THEIR RESPECTIVE ROLES
The roles will be defined as follows:
The Implementation Agencies- The primary responsibility of these agencies is to implement different components of this project. This responsibility, which is entrusted to a contracting authority or operation manager, implies, in particular, the exercise of the following functions: definition of specifications and/or terms of reference, requests for consultants and/or calls for bids, procurement, reception and control of rendered services, and organization of the expenses. 20
Under the project, the implementing agencies selected by the Algerian government are indicated in the following table:
1.1.2 Scientific Study on the phenomenon of November 10, ONM 2001 _ 1.1.3 Integrated survey (out of Bouzareah zone) DHWA 1.1.4 Integrated survey of the zone of Bouzareah tWA Df
1.2 Training ONM, 1.3 Equipment DGPC, 2001______ANRH
2. Urgent physical works ______2.1.3 draulic works in the Basin of Oued Koriche DHWA 2.2. Torrential correction of the Oueds of the Bouzareah DHWA
____Massif 2.3. Plantation in the Basin of Oued Koriche and its CF A/WA channels 2.4. Housing Construction DLWA 2.5 Provision of construction related services, connecting DLWA roads, Road network and various networks (VRD) 3. Project Management 3.1 Establishment and operation of Project Coordination WILAYA Unit 3.1.1 Equipment 3.1.2 Provision of Services 3.2. Training on project management WILAYA 3.3 Other specific studies and works WILAYA
5.3 PROJECT MANAGEMENT, COORDINATION AND MONITORING
The general management of the project will be entrusted to the Ministry of the Interior and Municipalities (MICL). This component is important because its objective is to reduce the vulnerability of the urban zones in the Wilaya of Algiers. The Ministry will undertake the organization of following committees: 21 a) Inter-Ministerial Committee presided over by His Excellency the Minister of Interior and Municipalities or his representative will be entrusted with task of orienting the activities of the project, to ensure its strategic coordination, and to conduct the required budget appropriation. This committee will be composed of representatives of the Ministries of Finances, Housing, Agriculture and the Forests, the Public Works, Water Resources, and Transport, as well as representatives of the Wilaya of Algiers. This Committee will meet on regular basis and as needed. The Technical Secretariat of this Committee operates under the Ministry of Interior and Local Collectivities. b) Special Committee in charge of dealing relocation of the populations will also be convened to treat these important activities pertaining to vulnerable people. c) Project Coordination Unit will be established within the Wilaya and will have the following key missions:
i) Helping the implementation agencies to ensure that the procurement procedures are in compliance with those of the World Bank. The Algerian Authorities strongly stressed the fact that this Unit would not undertake procurement transactions and this function are entrusted to each implementation agency;
ii) Preparing follow-up and status reports and the monitoring tables (Performance indicators);
iii) Consolidating the project accounting of different components;
iv) Submitting to the Algerian Development Bank (BAD), within no more than 5 workdays, the payment requests emanating from the implementing agencies upon ascertaining that the support documents are in compliance with the procedures of the World Bank; and
v) Managing the project documents.
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SECTION 6
PROCUREMENT AND DISBURSEMENT PROCEDURES
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6 PROCUREMENT AND DISBURSEMENT PROCEDURES
6.1 PROCUREMENT
Procurement for the proposed project will abide by Bank procedures as defined in the published Guidelines as follows:
Guidelines for Procurement under IBRD Loans and IDA Credits (published in January 1995 and revised in January and August 1996, September 1997 and January 1999), as well as the Guidelines for the Selection and Employment of consultants by the Borrowers of the World Bank (published in January 1997 and revised in January 1999), and arrangements contained in the loan agreement. A list of goods to be acquired has been established, and the Procurement Plan has been prepared and agreed to by the borrower at the time of the assessment. Other items could be identified during implementation. In this case procurement will be in accordance with the principles determined at the appraisal.
6.2 MODALITIES FOR PROCUREMENT REVIEWS
Considering the necessity to rapidly undertake required action at every stage of the process, an agreement will be concluded with the Borrower as for the standard period of review pertaining to actions such as the preparation of the bidding documents and technical specifications, evaluation of the bids and selection in order to ensure the preparation and clarification of the contract documents, contract award and signature, notification etc. The Project Coordination Unit (PCU) will establish an access to the Internet as soon as possible. The delegation of functions and the government approval procedures should be simplified and agreed upon in order to avoid delays. The PCU will be staffed with a Procurement Specialist and he will be provided access to the Internet network. The Borrower will have the option to rely upon the assistance of qualified procurement consultants to seek advice and to train the staff of the implementation agencies in charge of procurement, as well as those of the PCU.
The estimated value of civil works to be procured under ICB procedures is US$26.3 million, and would be used for civil works contracts of estimated value over US$5.0 million equivalent each. Works contracts costing less than US$5.0 million equivalent each would be procured using NCB procedures acceptable to the Bank and, in accordance with the provisions of the Paragraph l(c), part C of Schedule 3 of the Legal Agreement. Small works contracts not exceeding US$250,000 equivalent per contract up to an aggregate of US$1.5 million would be procured under the Small Works procedure, based on at least three quotations (in writing), obtained after written requests. The estimated value of goods to be procured under ICB procedures is US$7.0 million. All goods contracts of estimated value of more than US$250,000 equivalent each would be procured using ICB procedures. NCB procedures would be used for procurement of goods contracts costing less than US$250,000 equivalent. Goods contracts costing less than US$100,000 equivalent would be procured using international or national shopping procedures. Works contract estimated to cost more than US$500,000 equivalent each and goods contracts estimated to cost more than US$100,000 equivalent each will be subject to prior review. Consultant contracts estimated to cost the equivalent of US$200,000 or more would be procured using Quality and Cost-Based Selection (QCBS) procedures, seeking interest through notification in the UN Development Business. For contracts estimated to cost less than US$200,000 equivalent, consultants may be engaged using QCBS, Quality-Based Selection (QBS) or Least Cost procedures in conformity with Section 3 of the Guidelines. For individual 24 consultant contracts estimated to cost equivalent or more than US$50,000, Section 5 of the Guidelines will be applied and prior review will be required. "Project Costs by Procurement Arrangements" table attached to this MOP provides information on procurement methods for works, goods and services contracts proposed under the project.
6.3 PROCUREMENT METHODS (SEE TABLE A)
Goods
ICB- For contracts estimated to cost US$0.25 million or more simplified ICB procedures as described below will be used.
(a) Advertisement- As soon as possible, but at the latest time when the goods important to be acquired are identified, a General Procurement Notice will be published for every project in Development Business along with the required services of consultants. This notice will be inviting the eligible contractors, suppliers, firms and eligible interested consultants to submit their interest to bid to the implementation agencies, which will forward a copy to the PCU. The General Procurement Notice will also be published in the Algerian national newspapers. For individual contracts, the General Procurement Notice will be followed by the publication of specific announcements in the local newspapers. The bidding documents will be sent to the suppliers who will have expressed interest responding to the General Procurement Notice that will be updated every year.
(b) Bank standard documents on the invitation for bids- The PCU will review the use of standard bidding documents approved by the Bank for each procurement method of goods, works, and consultant services. Prior approval by the Bank will be required on the model documents for every procurement method. The period allowed to submit the bids can be brought to thirty days at least.
6.4 INTERNATIONAL SHOPPING
International Shopping will be used, as an alternative to Intemational Competitive Bidding for the procurement of goods generally available commercially, including equipment, materials, and standards products estimated to cost $US100, 000 or less. For International Shopping, three quotations from two different countries are required in response to a written invitation. The list of suppliers will be prepared starting first by those who expressed an interest by responding to the announcements published in the press (For example, General Procurement Notice and national newspapers). In order to get the minimum three quotations, it is recommended to solicit more than three suppliers whenever possible, to palliate the possibility that some suppliers would not submit any proposals. Concerning the procedures of International/National Shopping, request for proposals can be sent by a telecopy or fax, and the proposals submission can follow the same transmission channel.
6.5 NATIONAL SHOPPING
This method will be used for the acquisition of supplies generally available in Algeria for contracts estimated to cost $US 100, 000 or less. At least three written quotations are required as responses to a written solicitation. The preparation of the list of suppliers that will be invited to submit proposals will be based on the same principle as applied to International Shopping, but in the case of National Shopping, all suppliers can be Algerian.
6.6 WORKS
ICB: International Competitive Bidding. The procedures of advertisement and use of the proposal for bids are those described under ICB-Goods. The ICB procedures for works will be used for each contract estimated to cost US$5 millions or more.
NCB: National Competitive Bidding. Taking into account the fact that works are scattered and by their nature are not appealing to foreign entrepreneurs, NCB will be used for contracts estimated to cost more than US$250 000 but less than US$5 millions each. However, interested foreign firms will be allowed to participate in the NCB. At least thirty days period will be. given for the submission of the bids, (minimum applicable), the actual period depending on the nature and the size of the contract. It will not be necessary to go through a pre-selection. A standard bidding document of NCB for works will be approved for use, as is the case for ICB. No offer will be rejected a priori on the basis of a predetermined maximum or minimum amount (Higher and lower limits chosen in advance by reference to the engineer's evaluations). However, after evaluation of bids, it will be possible in exceptional cases and with the approval of the Bank, to declare the bid as unsuccessful if the lowest responsive bid by a qualified contractor is much higher than the amount of the realistically estimated cost of the contract. In this case, a new bidding procedure will have to be launched in accordance with articles 2.59 to 2.62 of the Bank's procurement guidelines for works.
The awarding of the contracts will be given to the lowest competitive bidder on the basis of criteria of evaluation specified in the Invitation for Bids and no new criteria will be adopted. The bid opening will be held on the said day and hour upon the receipt of bids.
6.7 PROCUREMENT OF SMALL WORKS
The bidding documents approved by the Bank for smaller works will be used for the procurement of works estimated to cost less than US$250,000 per contract. This procurement is based on lump sum, flat rate, or unit price depending on the written proposals received from at least three qualified contractors f responding to a written solicitation. The simplified documents for bidding consist of a detailed description of works, including basic specifications, the planned date of completion of the works, a simple contract in conformity with the standard document approved by the Bank. The contract will be awarded to the contractor submitting the lowest responsive bid for the works required, and having both the experience and necessary resources to meet the requirements for the works in the best way.
6.8 CONSULTANT SERVICES
Consultant services will be procured on the basis of the Bank's procurement guidelines. This includes both the selections on a competitive basis and by direct contract in accordance with the paragraphs 3.8 and 3.11 of the Guidelines for the Selection and Employment of Consultants by World Bank Borrowers. Any contracts, envisaged to be procured by sole-source selection, will need to be justified, when a case arises, within the Procurement Plan for each component of the project. Quality and Cost Based Selection as well as the selection of individual consultants, will be generally applied as procurement methods for consultant services. For a contract ho estimated less than US$200,000; Quality-Based Selection and Least Cost Selection could also be applied. 27
ALGERIA: URBAN NATURAL HAZARD VULNERABILITY REDUCTION PROJECT
TABLE A: PROJECT SUMMARY COST
US$ Million DA Million Pr,ojectC:,(S,ompon^ent Local -'Foreiign Total .Lcal Foreign Total 1. DM Capacity Building 2.97 6.04 9.01 237.60 483.20 720.80 2. Emergency Physical Works 95.48 10.60 106.08 7638.40 848.00 8486.40 3. Project Management 0.35 0.22 0.57 28.00 17.60 45.60 Subitotal , .... , .98.80,- ; 16.86 115.66 7904.00 1348.80 9252.80 Design & supervision 1.85 0.46 2.31 148.00 36.80 184.80 Subrotal; ' . 100.65 17.32 .. 17.97 8052.00 1385.60 9437.60 Physical Contingencies 4.03 0.69 4.72 322.10 55.30 377.40 Price Contingencies 2.01 0.35 2.36 161.10 27.70 188.80
TABLE B: FINANCING PLAN BY PROJECT COMPONENTS (US$ Million)
.'.9'' .'.-. - ''; '' 'iTotal Cost JBRD 'Goveiinenr t Project Component (incl. contingencies) Financing Financing
1. DM Capacity Building 9.55 7.55 1.90 2. Emergency Physical Works 114.90 80.65 34.25 3. Project Management 0.60 0.15 0.45
TABLE C: ESTIMATED SCHEDULE OF DISBURSEMENT
US$ NMillion 2002 2003 2004 2005 2006 Annual 2.05 42.70 20.00 17.40 6.30 Cumulative Total 2.05 44.75 64.75 82.15 88.45
Project Implementation period: July 1, 2002- August 31,2006 Expected Effectiveness Date: September 1, 2002 Expected Loan Closing Date: February 28,2007 28
TABLE D: THRESHOLDS, PROCUREMENT METHODS AND PRIOR REVIEW (Base Cost Values)
Contract Value - Subject to prior a Threshold ($million) e . review (million S) > $5.0 million ICB 26.30* 1. Works < $5.0 million NCB 73.80* <$250,000 Small Works (SW/NS) 0.40* > $0.5 million ICB 6.70* 2. Goods $0.10- $0.5 million NCB 0.23* < $0.10 million IS/NS 0.40* > $200,000 (firms) QCBS 2.60** 3. Services < $200,000 (firms) QBS, or Least Cost (LC) 1.70** < $50,000 Individuals See Section 5 (guidelines) 0.30** Total Amount of contracts subject to prior review: US $112.0 million (91 %)
(*) Each contract for: (a) works estimated to cost the equivalent of $500,000 or more; (b) goods estimated to cost the equivalent of $250,000 or more; (c) the first two contracts for works of an amount smaller than $500 000 under NCB; (d) the first two contracts under small works; and (e) the first two contracts for goods under IS/NS; will be subject to Bank prior review. All sole source contracts will be subject to Bank prior agreement. All other contracts will be subject to selective post review by the Bank.
(**) Consulting contracts. Procurement for each consultant contract estimated to cost the equivalent of US $0.1 million or more with firms, or equivalent of $50 000 or more with individuals, as well as all sole source contracts, will be subject to the Bank's prior review. Follow-up assignments will be permissible to the extent that these are indicated in initial TORs. Contracts below the above amounts will be subject to selective post review. 29
TABLE E: SUMMARY PROJECr COST ESTIMATE
2; .; .Estimated'costs,e Estimatedeosts I Bank funding- -Sub-omponents > . ,. -.-, S .;. ' DA million US$ million
I. Disaster Management Capacity Building Studies 154.00 [1.90 1.52 Training 27.09 [0.34 0.20 TA, studies, training for Environment& Forestry 0.40 0.05 0.04 Equipment 589 .60 7.37 5.90 SUB-TOTAL: DM CAPACITY BUILDING .764.00, 9.55 7.65 11. Emergency Physical Works Social infrastructure & facilities (schools, post.) 600.00 7.50 0.00 Infrastructure 2,000.00 25.00 15.00 Housing 6,275.00 78.45 62.75 Reforestation 92.00 1.15 0.69 Geotextile 28.00 0.35 0.25 Studies & Construction Supervision 196.00 2.45 1.96 SUB-TOTAL: EMERGENCY PHYSICAL 9; I9 1.00 114,9 -80.65 11. ProjectManagement* Consultant services 16.00 0.20 0.00 Salaries and recurrent costs 16.00 0.20 0.00 Equipment and Vehicles 10.00 0.12 0.09 Equipment and Vehicles to be used by forestry 6.00 0.07 directorate & environment inspectors l SUBITOTAL: PROJECT MANAGEMENT.- : 48.00 0.6l 0.15
* This component includes the budget for strengthening, inter alia, all activities related to environmental management. 30
TABLE F: ALLOCATION OF LOAN PROCEEDS
Expen,diture: :Category Loan Amounttin US$ Financing Percentage
(a) Housing 60,500,000 80% Works (b) Other 14,500,000 60% 100% foreign expenditures, Goods 6,300,000 100% local (ex-works) and 70% .______. of other local expenditures Local exp.: 80% of TTC cost Services 3,756,000 mcl. Taxes, 100% foreign excl. taxes, (62% foreign services incl. Taxes) 100% abroad, 80 % of local TTC Training 210,000 cost
Front End fee 884,500 100%
Unallocated 2,299,500
TABLE G: PROJECT COSTS BY PROCUREMENT METHOD (US$ MILLION)
Expenditure Category ICB NCB Other** NBF*** Tottl Total 26.30 77.05 0.48 7.50 111.28 Works,w Bank loan- -,, 21.00 56:00 0.30 0.00 .77.30: Total 7.06 0.00 0.80 7.86 Goods Bank loan*' - 5.75. ' 0.00 0.55 , , . 6.30 Services Total 0.00 0.00 4.8 0.20 5.03 Services___ -Bank loan*-. .0.00 0.00 .3.97- - . _- .3.97 Front-end Fee Total . -- 0'88 ' " 0.88 Bank loan* 0:88' ... ,0.88- Total 33.35 77.05 6.95 7.70 125.05 _I1kofl6wj iNWBg;;a5Dj IRMO _ MRI
Notes: * Figures represent the amounts to be financed by the Bank Loan. All costs include contingencies.
*O Other represents intemational and national shopping (including small works) and front end fee. * NBF represents inter alia works, staff salaries and other recurrent costs not financed under the loan 31
TABLE H: SUMMARY PROCUREMENT PLAN
Contract I Contract Item Eitimate of :'Proc. Base Cost Im'ple. Expected Expected Number Numb. Miethiod S US- million Period - Start date Finish Ref - of Packages . months . Dite 1. Capacity Building-for Disaster Manageeiiint . . - . '.. DMI.01 Bouzareah Vulnerability study I QCBS 1. 200 36 Dec. 2002 Dec. 200' Incl. T.A. & Training for Indiv. 0.050 36 Dec. 2002 Dec. 200' Environment EAs, EMPs DMI.02 Vulnerability of Aig. Wilaya 1 QCBS 0. 312 24 Mar. 2003 Mar. 200; DMI.03 ONM Early warning study & 2 QCBS 0. 300 24 Jan. 2003 Jan. 200' ONM Scientific Study DMI.04 System Study for ONM I l 0.020 2 Sep. 2003 Oct. 2003 DMI.05 Training (DGPC) I QCBS 0. 110 39 Sep. 2002 Dec. 200: DMI.06 Training (ONM) I QBS 0. 050 39 Sep. 2002 Dec. 200: DMI.07 Training (ANRH) I I 0. 030 39 Sep. 2002 Dec. 200' DM2.01 Equipment for ONM 3 ICB 1. 520 24 July. 2003 July 200' DM2.02 Equipment for ONM 2 IS 0. 180 24 July 2003 July 200' DM2.03 Equipment for DGPC 4 ICB 5 .170 24 Sep. 2003 Sep.. 200 DM2.04 Equipment for ANRH 2 IS 0.081 12 Sep. 2003 Sep. 2002 -2_.EniieriencylPhysical Works . .__'._.: EPW2.00 Schools & other social 7 [6.875] 32 May 2003 July 200( facilities _NFB_ EPW2.01 Flood storage basins 10 NCBR 12.000 32 Sep. 2003 Jan 2006 EPW2.02 Channel: Oued Beau Fraisier I NCB 1.250 30 Sep. 2003 Jan 2006 EPW2.03 Rehabilitation of channel: I NCB 0.730 30 Sep. 2003 Jan 2006 EPW2.04 Gabions level I (River Beds) 5 NCB 7.600 36 Aug, 2002 July 200' EPW2.05 Gabions level II 4 NCB 1.700 36 Aug. 2002 July 200' (Embankments) . EPW2.06 Geotextile (goods) 2 IS 0.330 36 Aug. 2002 Aug. 200 EPW2.07 Plantation of trees 4 NCB 0.360 36 Aug. 2002 Aug. 200 EPW2.08 Plantation of fruit trees 3 NCB 0.720 36 Aug 2002 Aug. 200 EPW2.09 Housing: site development 8 NCB 14.000 33 May 2003 Feb. 200 EPW2.10 Construction of 5,000 houses- 20 NCB 35.000 33 May 2003 Feb. 200 Tranche I EPW2.11 Construction of 5,000 houses- 12 ICB 25.000 30 July 2003 Feb. 20( Tranche II EPW2.12 Coord. Design & supervision Approx.10 QCBS 0.500 (10) &37 Aug. 2002 Feb. 200, EPW2.13 Final Design & supervision 32 LC 1.600 (10) &37 Aug. 2002 Feb. 200 EPW2.14 Misc. Consult. (incl. Topo. 10 I 0.200 36 Aug. 2002 Feb. 200 surveyors.) 3.-Project.NadIiuaemerit (C.S. incl. Training}) : . . . . PM3.01 Consultant services, Training 0.190 24 Aug. 2002 July 200 Function. Salaries (Incr. Oper. Costs) 0.150 48 Aug. 2002 July 200 Function. Logistics (recurrent costs) 0.040 48 July 2004 July 200i PM3.04 Office Equipment 2 NCB 0.030 12 Aug. 2002 July 200: PM3.05 Off. Equipment for Env. 1 NS 0.015 12 Aug.2002 July 200 PM3.06 Vehicles 2 NS 0.100 6 Aug. 2002 Jan. 200: PM3.07 Vehicle to be used by Forest 2 NS 0.060 6 Aug. 2002 Jan. 200: & Environment Inspectors I
32
SECTION 7
DISBURSEMENT
ii
7 DISBURSEMENT
7. Disbursement
Withdrawals from the proceeds of the loan will be based on the traditional disbursement methods of the Bank, using direct payments, requests for special commitments and reimbursement applications, either fully documented or using Statement of Expenditures (SOEs) as per applicable procedures. As projected by Bank's standard disbursement profiles, disbursements would be completed four months after project closure. Disbursements would be made against standard Bank documentation.
7.1 SPECIAL ACCOUNT (SA):
To facilitate disbursement of eligible expenditures for goods & services the borrower will open and maintain a special account at the Banque d'Algerie (the Central Bank of Algeria) to cover eligible project expenditures to be managed and administered by the Banque Algerienne de Developpement (BAD). Authorized allocation of the special account would be US$6,000,000 covering an estimated 4 months of eligible expenditures financed by the loan. Banque Algerienne de Developpement (BAD) will submit monthly replenishment applications with appropriate supporting documentation, including reconciled bank statements, for expenditures incurred and will retain and make the documents available for review by Bank supervision missions and project auditors .To the extent possible, all eligible project expenditures should be paid through the special account. Specifically all eligible project expenditures of less than US$50,000 equivalent shall be paid from the SA.
7.2 USE OF STATEMENT OF EXPENDITURE (SOES):
All applications to withdraw proceeds from the grant will be fully documented, except for: (i) expenditures of contracts for goods with an estimated value of US$250,000 or less; ii) expenditures of contracts for works with an estimnated value of US$500,000 or less iii) expenditures of contracts for consulting firms with an estimated value of US$100,000 or less and (iii) US$50,000 or less for individual consultants, which may be claimed on the basis of Statements of Expenditures (SOEs). Documentation supporting expenditures claimed against Sues will be retained by the BAD and will be available for review when requested by Bank supervision missions and project auditors. All disbursements will be subject to the conditions of the grant Agreement and the procedures defined in the Disbursement Letter. 7.3 RETROACTIVE FINANCING
The retroactive financing which amounts to $US500,000 would be applied to the expenses which occurred after July 1, 2002, covering consultant services, deforestation and other emergency works. The services of the consultants concern the first phases of the detailed design, the works of flooding prevention, and those works of reforestation that must start before the next rainy season. The contracts that must be financed retroactively include specifically the following: EPW2.04 and EPW2.05 (Construction of installation of big cages or gabions), EPW2.07 and EPW2.08 (Reforestation), EPW2.14 (different services of consultation), PM3.04 and PM3.06 (Equipment and vehicles for the management of the project' 34
7.4 INFORMATION FLOW
Homogenization and harmonization will be sought to the extent possible in areas such as the methods and accounting presentations, the Financial Management Reports, (so as to be in accordance with the models of the IBRD), and the software for the financial management of the project (monitoring, evaluation, and audit). Therefore, the flow of documentation will be as follows:
The PCU will transmit the original of the relevant receipts to the BAD for payment operations and will keep a copy of the transmitted documents;
The BAD will update the description form of the operation. It will keep the original of the documents and files as well as the debit statements issued by the Bank of Algeria or the World Bank. It will make a copy of the accounting statements of the Special Account to send as well as that of the loan account to PCU and General Direction of External Financial Relations of the Ministry of Finance (DGRFE), and to the World Bank. Otherwise, a copy of this accounting will be transmitted monthly to the DGRFE; and
The Bank of Algeria will transmit to the BAD, a monthly summary of the special account even though no operation has been done during the considered month. 3:,o
SECTION 8
FINANCIAL MANAGEMENT
36
8 FINANCIAL MANAGEMENT 8.1 GENERAL VIEW All agencies involved in the project (Wilaya of Algiers, ONM, DGPC, ANRH) are government agencies subject to the public accounting rules as defined by the legal framework applicable to the public sector. The Wilaya of Algiers is the implementing agency of the project and will establish a Project Coordination Unit (PCU) to facilitate the implementation. Basically, the financial management functions on the project will be divided between the PCU and BAD (Banque Algerienne de Developpement). The PCU will be responsible for the project accounting and reporting functions including: booking accounting transactions, record keeping, verification of supporting documents, preparing bank reconciliation, preparing periodic reports and financial statements, and preparing Payment Vouchers along with the verified supporting documents and send them to BAD for payments, as well as monitoring the Special Account (established at the Central Bank of Algeria). While BAD will be responsible for the administration of the Special Account and issues Payment Orders (withdrawn on the Special Account in the Central Bank) after verification of the supporting documents received along the Payment Voucher received from the PCU. BAD will keep track of transactions incurred on the Special Account and prepare Withdrawal Application to replenish the Special Account. Accordingly, the PCU is responsible for the accounting and reporting aspects except for issuing Payment Orders and administration of the Special Account, which belong to BAD.
Each of the implementing agencies will be entitled to conduct its own procurement, however, payments to contractor and supplier will be made by BAD through the PCU based on proper supporting documentation.
Quarterly Financial Monitoring Reports will be prepared by the PCU and sent to the Bank within 45 days from period-end. Annual financial statements of the project will be audited by the government audit department (Inspection Generale des Finances). Financial Monitoring Reports (FMR) will be prepared for the project on a quarterly basis within 45 days of the end of each quarter by the PCU. The set of FMRs will include: summary progress reports on project implementation, cost per component for the quarter and cumulative costs incurred per expenditure type, project balance sheets, and withdrawals made based on contracts below the stated threshold.
The PCU will prepare annual project financial statements (project balance sheet, Special Account statement, and cash flow) and arrange for audits to be submitted to the Bank in accordance with International Accounting Standards (IAS) by an independent auditor with TORs acceptable to the Bank. The audited financial statements along with the auditor's opinion will be sent to the Bank within six months of year-end.
8.2 FINANCIAL MANAGEMENT (FM) ASSESSMENT The financial management assessment conducted for all participating agencies revealed that the financial management systems in place are adequate and meet the minimum the requirements of the Bank. However, as these FM systems are specific for government reporting 37 purposes, they are not equipped to generate project reports required by Bank to facilitate financial monitoring of the project. For the implementing agency, the Wilaya of Algiers, it is estimated that such deficiency requires approximately six months to upgrade the system to generate these reports (dated covenant). In the meantime, the PCU will use simplified computer spreadsheet tables to enable generation of project's required reports during the first six months of the project implementation required for system upgrading.
8.3 ACCOUNTING SYSTEM
The project accounting will be the responsibility of the PCU in the Wilaya of Algiers, which will maintain all accounting records, supporting documents, undertake booking all financial transactions, prepare quarterly reports, prepare annual financial statements, and send all payment supporting documents for BAD to prepare Payment Order to the Central Bank, after examination of the supporting documents, to execute the payments. Accounting for the project will be on cash basis in line with government and BAD accounting. BAD will send monthly bank statement to the PCU to allow proper monitoring of the Special Account and facilitate preparing bank reconciliation and check accuracy and completeness of transactions incurred. Detailed accounting and disbursement procedures, as well as procurement, will be part of the Project Implementation Manual (PIM).
8.4 PROCEDURES OF INTERNAL CONTROL
The Internal Control Procedures put in place at the Wilaya of Algiers (and the other concerned agencies) is based upon the governmental system as set by the laws and the regulations, that are accepted by the Bank and do not present any problem of responsibility. For the objectives of the project, the PIM will define the procedures of control and the relation between the implementation agency (Wilaya of Algiers) and the other involved agencies (ONM, ANRH, and the DGPC), as well as the BAD, which is in charge of the financial management of the project. In addition, the PIM also defines the procedures of acquisition for the project that must be conforming to the recommendations of the World Bank. The transactions of acquisitions entered into by the implementing units will be undertaken according to PIM and the supporting documents will be sent to the PCU for verification and registering in the accounting system of the project. Then, these documents will be transmitted by PCU to the BAD for verification and payment of the firms and suppliers. In order to facilitate this task, and before the beginning of the year, every concerned agency will prepare and will accept an annual equipment plan in coordination with the PCU.
8.5 FLOW OF FUNDS
Loan proceeds will be transferred to the Special Account, established at the Central Bank of Algeria, and solely managed by BAD. The PCU will prepare payment voucher and attach all verified supporting documents and sent them to BAD for verification and preparing payment order to the Central Bank to execute the payment to contractors/supplier,
BAD will manage disbursements, reconcile expenditures with approved budgets, consolidate and reconcile project expenditures with the Bank's Loan statements, and prepare replenishment of the Special Account. As mentioned above, each of the involved units (Wilaya of Algiers, ONM, ANRH, and DGPC) is entitled to conduct its own procurement, however, all 38 accounting will be centralized in the PCU to and then sent by the PCU to BAD for payment process.
8.6 FINANCIAL MONITORING REPORTS
The PCU will prepare the Financial Management Reports and will send them non-audited at the Bank within the 45 days following every end-of-quarter. The Financial Management Reports will include (a) a general progress report about Project implementation (b) the cost by component for the quarter (c) the costs incurred by type of expenses (d) the project balance sheet and (e) the acquisitions incurred on contracts under the established threshold. The project statement of accounts will be put in place to facilitate the automatic generation of the reports of financial controls. The contents and the format of the reports will be prepared by the consultant and subject to agreement during the negotiations. By the same token, each unit in charge will prepare a quarterly general report on its activities pertaining to the project, and on the physical progress implementation. These quarterly reports will be sent to the PCU within the 30 days following the end of every quarter.
8.7 AUDIT The project accounts and the yearly financial statements (project balance sheet, the flow of funds, and the statement of the Special Account) will be subjected to a yearly audit. It will be conducted in accordance to international standards, and by an independent auditor acceptable to the Bank, and under the conditions of reference followed by the Bank. The Audit will examine all sources of the funds of the project, including the Bank loan. In the same way, it will also examine all incurred expenses including those related to the statements of the expenditures (SOEs) by ascertaining their conformity with the Loan Agreement. An auditor will present an honest opinion on the project financial statements: In addition the auditor will supply a separated viewpoint on the eligibility of all incurred expenses that are included in the SOEs. The Audit report should be sent to the Bank not later than six months after the end of the year.
8.8 RISKS The project's financial management risk is considered moderate. This consideration is the result of the following: (a) the PCU is an entity that is newly created and therefore has no experience dealing within the projects financed by the Bank; (b) Other entities are involved in the project, and conflicts of procedures and/or of authority could generate some delays in its realization; and (c) the migration of financial data from the simplified monitoring system toward an integrated accounting system, and the upgrading of the monitoring and accounting systems. These risks will be mitigated by: recruiting a qualified consultant; by upgrading the system of monitoring and accounting; a rigorous control by the Bank experts during the first year of implementation; and the provision of technical support to the project team as well as to the PCU during the first year via training and workshops.
39
ATTACHMENTS
7-V
ATTACHMENT 1: THE SOCIOLOGICAL FEATURES OF THE AFFECTED POPULATION
The people affected by the floods reside in two types of districts that are in full contrast based upon their urban history and the way in which they were populated. One can divide these sets of districts into two categories: a) The first group of districts is composed of early settled areas where the form of urbanization (more than 45%) is made out of collective buildings with several floors. These are the communes of Bab-EI-Oued, Casbah, Alger-Centre, El Biar and Hammamet. b) The second group is made up of more recently urbanized districts where the main building is the individual residence. These are the communes of Oued Koriche, Bouzareah, Bologhine, Rais Hamidou and Beni-Messous.
Maps I and 2 provide the distribution of the forms of residential occupation in the concerned zone.
An examination of these two maps reveals that the communes belonging to the first type regroup densely populated old urban zones like Bab-EI-Oued, the Casbah, El Biar and Alger- Centre, and a more recently urbanized commune that had received an important number of social collective apartments since 1975 (Hammamet). In the second type, one notices two categories of communes: those which developed since the beginning of the century (Bouzareah, Bologhine and RaYs Hamidous) and those which constituted, to various degrees, the area where the poor migrated in the early sixties during the independence of the country (Oued Konche and Beni- Messous).
Map 1: Distribution of collective housing per commune
Proporlion drmneuNes coDectis
4*4.899
a ,! . 213 lJ .3
\.!,1,LIh0!;jgd ' !! 0,0 8.3, 4j;l. -7.7~~ ~ ~~~~-
1 l1 -- K .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1
- -, ______II : ' ! I.il'l :!.', !ihli 1I-l i;'!i0 ,i1! jilla 1! ~I,l 1 -' Map 2: Proportion of individual Housing
' ' '. . Z ' . 'amnae,
~~~~~~~~~~~~~~~~~IX., , ._15U
,Am Benlan I_,, jd!i.e;EIOr ProponIon de malsons indMduelles
42*D 656 -,32r_-49.2 ; IefCent§er 0 164-328 \~~ 5 a~~ 16 4 ,SDeI4rahhTh Akrjpyu I , ; - 1 I; 1,i .1 ,. 1 > ii'l, , Sid .M'IIsnmed
[-F{;|I 1., Hamma, I ' E]| II Anmesse
_ _ ...... ' | ,, , x,¢,~~~~~~~~III lr. 11.1
One also notices on maps 3 and 4 that the communes belonging to the second category (individual housing which is characterized, among others factors, by vacant and non-urbanized land) received the biggest part of the dilapidated and illegal housing due to the topography of the region. It is necessary, in this regard to stress the position of the commune of Oued Koriche that is indeed considered being the most underprivileged. This commune received the least amount of the social housing program. In addition, this communes regroups the strongest concentration of people which has settled without permit and whose life is highly precarious.
It is also necessary to notice the existence of illegal housing in the communes surrounding Oued Koriche and the occupation of the slopes of the massif of Bouzareah whose fringes are, thanks to administrative divisions, integrated to the territory of these communes.
|Map 3: Precarious Housing in the communes of the zone |1 f~~~~~~~~~~......
. ! 3 t~~~~~~~~~~7
XX A a 170 - 3530 42
Process of densification of neighborhoods
On the other hand and to the contrary to a widespread idea, it seems that from the viewpoint of the processes of densification and urbanization, the communes of Oued Koriche did not witness migration of new population during the census period 1987/1998. The main part of migratory growth went into the communes of the secondary peripheral fringe. The biggest majority of the people residing in the affected zone, based upon data of the 1998 census, have settled there for more than at least 15 years. They have been living in dilapidated and illegal housing that spread further.
Information shows that the last period 1987/1998 was essentially a period of consolidation of the residential construction by those that migrated in the zone before the eighties. This process was characterized by the construction of shacks and other precarious housing of new households of the second generation of migrants that came mostly from the immediate surrounding sites. This in fact indicates a process of sociological and economic integration into the city.
Livelihood and housing conditions of the target population
The life conditions of the people of the affected communes can be described by three indicators relative to access to basic services: water supply, electricity and sanitation. The communes of Oued Koriche, Bouzareah, and similar adjacent communes, which have experienced an increase of poor people, are by far less equipped than the communes formerly urbanized such as Alger-Centre or Bab-EI-Oued.
However, taking into account the level of occupancy rates per apartment unit (ORA), one can notice the following differences according to the statistics provided by the Wilaya: the population census by communes on the eve of the floods produced the following rate: 8.2 in the commune of Oued Koriche in 2001 whereas the census of 1998 estimated it at 6.19; and 7.49 for Bab-EI-Oued in 2001 against 6.68 for 1998. One can see, in this difference of numbers provided by the census and those collected by the administration, the fact that the latter has overestimated the number of inhabitants. In any case, this ORA shows that the communes of Bab-EI-Oued and Oued Koriche appear in relation to the other communes of the Wilaya as being the most overcrowded.
Activities and income
The bulk of income comes from the active population, mainly the head of households, and more than 90% among them have an income, except for Bab-EI-Oued where the percentage is 87%. However, many businesses and professional premises were carried away by the floods mainly in the district of Bab-EI-Oued where many people found themselves without resources and had some difficulties to resume their commercial or trade activities. The statistical data conceming these areas are not available. The estimates established by the authorities of the Wilaya (on the basis of a sample of 1,000 head of households among the 5,300 counted in the zone after the flooding) show the following:
a) 35% of the head of households exercised "occasional jobs" which in the vocabulary of the administration means "informal activities", b) 5% only practiced trade activities in the area. 43
This means that the rest of the heads of households, almost three-quarters of them, were holding more or less regular jobs in the rest of the city.
The above data shows that this population is fully integrated into the urban economy of Algiers. It also seems that this population is long established in the city and has constituted a powerful factor of economic integration. Therefore, these are not apparently newcomers who are seeking insertion in the job market in Algiers.
Levels of education
The rate of general illiteracy among the total population (6 years old and above) is lower in relation to the national level (32%). However, when one considers certain level of illiteracy (minimum alphabetization and primary level), the rate includes half of the population. In other words, in spite of a relatively lower rate of illiteracy, the populations of these communes remain insufficiently educated. This data reinforces the previous reports on the earlier settlement of the population in these areas. The level of instruction is above the national average, notably in the district of Oued Koriche and its immediate vicinity. Although this area is characterized as mentioned previously by the precariousness of the housing, its positive percentage of instruction is an indication that these populations were established there for a sufficient period of time, being able to send their children to the surrounding schools. This in turn has produced a higher general level of instruction of the population.
Report on dependants
A person having an income based on a given activity, on retirement, or on a pension supports (on average) 7 dependents (with size of the household as well as the proportion of the heads of household having an income considered). The households headed by a woman constitute a non-negligible part of the whole, especially in Bologhine and Oued Koriche.
Community Aspects
There is no specific survey on the community organization aspects in the assessed zone that would be worth quoting. University studies undertaken in the district of Diar El Kef in Djenan Hassans, in spite of their partial character, show the existence of a large movement of new households whose parents have been living in the zone since the sixties. These new households have built their own shacks on the lower side of these residential units. This also shows the existence of a strong and homogeneous community living in the area. The people originating from a given region tended to regroup in the same part of the areas. This model has been disrupted somewhat lately following a phenomenon of residential mobility caused by the small operations of relocation that targeted the local populations. This, however, did not upset the previous housing model.
The content of the Project
The Project of the reduction of the vulnerability of the zones affected by the flooding of November 10, 2001 has two main objectives: (a) providing the Algerian government authorities with human, material, and organizational means to enable them to intervene in an efficient manner in case of natural disasters; and (b) setting up a sizable integrated and systematic plan aiming at the reduction of the vulnerability on both the physical and social levels of the zones affected by the floods that hit the city of Algiers in November 2001. 44
This project is composed of the following two key components: a) Reinforcing the institutional capacities of prevention and management of the natural disasters at the national leveL In this component, it is expected to put in place a series of organizational measures, institutional procedures, and means allowing the fast and efficient handling of natural disasters at the level of the territory of the Wilaya of Algiers or nationwide. b) Reducing the vulnerability of urban zones weakened by the flooding of November 10, 2001, notably by restructuring and rehabilitating these zones by re-housing the affected families in the Wilaya of Algiers. In this respect, the Algerian authorities preferred to follow the principle of an integrated approach permitting to treat, in a coordinated way, the question of vulnerability in its various formns (natural, environmental, urban and social). In this connection, a series of measures will be implemented in the Wilaya of Algiers: (i) Repairing the damages caused by the flooding around the massif of Bouzar6ah and the basin side of Oued Koriche, (ii) Taking care of the affected zone to reduce its vulnerability, and (iii) conducting re-housing activities for the groups exposed to the risks in the affected zones and weakened by inclement weather.
Conditions for re-housing
The re-housing solution of the inhabitants residing in the affected zones that are more or less near their present places of residence is the option that has been retained for a certain number of imperative reasons. This situation stems from the modalities of the technical treatment of the affected zones. Indeed, a certain number of inescapable technical constraints are described in the following: a) The very unsteady character of the soil along the basin barring high-rise constructions; b) The saturation of the collective facilities (i.e., triple vacation in the schools); c) The recommendations of the experts for the reconstitution of the vegetal landscape of the basins and for the realization of works of the ways and other networks; d) The lack of land to be used for construction in the zone capable to shelter the targeted population; and e) The very high level of urbanization in the space closer-to the affected zone makes it difficult to keep the greater part of the inhabitants in the same area. This concerns mainly families who live in buildings that were part of the census undertaken by the Wilaya government and currently classified as "vulnerable to risks". In summary, after the floods, a number of families are now exposed to worse conditions and risks than the precariousness in daily life they used to face before.
The nature of the works to be achieved has to do essentially with physical planning of the zone, which entail the following: reinforcement of embankments, demolition of all constructions facilitating erosion of the slopes, and reconstitution of the protective vegetation to prevent erosion. These works cannot be satisfied while maintaining the precarious construction on the basin side of Oued Koriche and its channels undertaken without taking into account the rules of security. These constructions were erected in an illegal manner (without obtaining of a building permit and other official housing documents) and spread over an area with the least real estate value. This is the result of the fact that the area was completely ignored by public or private urban developers. As a result, this zone does not present minimal conditions that would plead for the population to remain on site. 45
Other arguments, sociological in nature, show that the resettlement of the people, even if it derives from technical recommendations as described above, will receive the support from the population. These arguments are justified as follows: a) The report undertaken by the municipalities shows that considerable requests for social housing have been submitted to the municipalities' social services and housing departments of the affected zone. Therefore, when one learns that that these requests were made for an apartment in undetermined locations or in sites distant and outside the municipality where the request is submitted, it obviously shows that people directly express their readiness to move wherever the authorities intend to relocate them; b) According to the observations made by the authorities (in charge of the Plan ORSEC implemented after the floods) and by independent witnesses (especially by journalists of the written press), there has been an extraordinary increase of re-housing requests for the sites proposed by the Government. These requests were not only made by disaster victims, but also by families outside the zone attracted by the offer despite the distance of the new sites; c) The highly marginal character of the types of professional activities undertaken in the premises built in the affected zone is due to the precarious and uneven topography of the zone that generally does not offer direct access aside from winding trails along the Bouzareah massif; d) The nature of the proposed housing, offered in replacement for present illegal precarious constructions, constitutes an advantage for the beneficiaries; and e) Finally, the workplaces of the local inhabitants are generally located far away from their present residences. Thus, the argument that the distance between the places of work, and dwellings provided in the new re-housing could have a potentially adverse impact needs to be re- examined.
Solutions retained for the Project
The solutions for re-housing retained in the Project consists in offering a completely equipped social rental housing units called type F3 for 1.2 millions Dinars to each of the 5000 affected families. These apartments will be located in part of the seven (7) sites chosen by the authorities of the Wilaya of Algiers. These sites are urban land in good conditions and with all basic services available. Five of the seven proposed sites are situated between 1 to 1.5 km of the zone Ain Malha (Birkhadem), Draria, Route de S' Haoula (Draria), City Center of S'Haoula (S'Haoula), Belle Vue (Ain Benian), Domaine Bel Haddadi and locality of Sidi Youssef (Beni- Messous). The other two, which have not been finalized yet, are located at the distance of about 5 to 10 kilometers from the current place of residence. Each site will accommodate between 300 and 2,000 apartment units. This housing will provide all necessary and basic services and socio- cultural facilities (schools, centers of health, etc.) that are required by the Algerian urban regulations.
In order to compensate for potential business losses through resettlement, the first floors of each apartment building will be reserved for business and commercial activities. They will be allocated for those whose business suffered a loss on the affected sites by the floods. At the end of the re-housing operations, the concerned population will benefit from a better quality apartment or a business office space. They will find more favorable standards of living at these new sites in terms of opportunity for schooling their children. 46
Resettlement Action Plan
The Algerian authority maintains the principle of developing an elaborate Resettlement Action Plan (RAP) that presents the entire process to ensure satisfactory and timely operation of re-housing. This Plan is designed to address the following basic principles:
a) Avoiding, as much as possible, involuntary population resettlement by taking into account all the realistic alternatives;
b) Seeking, whenever the resettlements are unavoidable, solutions allowing the resettled population to rebuild their livelihoods and their means of subsistence to a level at least equal, if not higher, than those that existed before their resettlement; and c) Consulting the concerned population by using appropriate means and inviting the beneficiaries to fully and effectively participate in the planning and implementation of the resettlement programs.
Thus, the following arrangements will hold: a) The population that will be resettled under the project will involve only those whose dwellings present risks of collapse and concurrently eligible to the social rental housing as outlined in the provisions of the Executive Decree 98-42 of February 1st, 1998, which - in turn - underline the need for transparency in housing allocation procedures to the APCs 2; b) The families whose dwellings are vulnerable but do not qualify under the social rental housing program as stipulated in the Executive Decree 98-42, will be oriented towards other programs such as public housing development [logement promotionel] programs and Rent-to Buy [Location-Vente] schemes; c) The families whose dwellings are not categorized as vulnerable and whose presence is not a threat to the achievement of objective for the vulnerability reduction of the zone will be maintained.
In any case, a provisional Resettlement Action Plan will be elaborated by February 2003 at the latest in order to document all these aspects. The finalized Resettlement Action Plan will complete this. The Plan will be adopted upon disclosure of the lists of beneficiaries, established in accordance with to the provisions described in the Resettlement Policy Framework.
Implementation Process
Entire implementation arrangements for re-housing follows the principles and procedures defined in the Resettlement Policy Framework. The management of the re-housing process will be entrusted to the Special Ad-hoc Committee comprised of all the parties concerned in the operation. To carry out re-housing operations, the principle modalities of this Committee should be based on the socio-economic studies and of the Resettlement Action Plan. The Committee will liaise its actions with the outcome of the consultation with the concerned population. Consultations will be carried out through questionnaires to determine the sites of their choice or
2 Ref. Resettlement Policy Framework for the Project. 47 through direct consultations with the concerned population. The respect of the populations' desires has been adopted as an essential working principle.
The re-housing of the population in these sites will only begin once the housing construction is completely finished according to the requirements stipulated in Algerian regulation in effect.
Table A: Demographic and housing information
. - Dati-of the Wil.aya-200i Census 1998
Comnmunes Population Housing Occupancy Population Housing Occupancy per unit per unit Bab-EI-Oued 90,446 12,063 7.49 87,557 13,287 6.58
Oued Koriche 54,689 6,629 8.2 53,378 8,629 6.18
Bologhine 44,648 6,205 7.19 43,283 6,717 6.44
Rais Hamidou 21,195 3,036 6.18 21,558 3,211 6.71
Hammamet 20,674 3,550 5.84 19,651 3,219 6.10
Amn Benian 53,262 8,511 6.25 52,343 8,221 6.36
Cheraga 62,395 9,491 6.56 60,374 9,039 6.67
Casbah 51,498 9,098 5.66 50,453 9,164 5.50
Bouzareah 71,468 11,051 6.46 69,153 10,847 6.37
El Biar 54,342 8,846 6.14 52,582 8,846 5.94
Sidi M'Hamned 92,755 14,698 6.31 90,455 15,005 6.02
Algiers-Center 99,544 18,032 5.52 96,639 18,320 5.27
TOTAL 717,016 111,012 6.4 697,426 114,505 6.09
Table B: Illiterate and illiteracy
(Commune Illiterate (%) Illiteracy (%) Bab-EI-Oued 18.30 (female = 24.17) 26.45 Bologhine 16.97 (female = 22.19) 27.73 Oued-Koriche 20.51 (female = 25.73) 29.99 Rais-Hamnidou 17.76 (female = 22.69) 29.99 48
Table C: Sources of revenue in general (%)
Commune ;ctivity . X .Retired. ... ensions Bab-EI-Oued 39.98 _ 6.75 Bologhine 38.05 5.60 Oued-Koriche 39.47 1 5.51 Rais-Hamidou 37.11 _ 4.81
Table D: Head of Households by gender
Commune - 'Total !!-- j;Women -:______To-:- - -- .______.______._ Total (Including single + divorced + widows) Bab-EI-Oued 14,160 3,064 2,673 Bologhine 7,341 11,171 1,063 Oued-Koriche 9,138. 1,853 1,563 Rais-Hamidou 3,556 446 359
Table D: Size of the Household
Bab-EI-Oued 6.18 j l Bologhine 5.90 Oued-Koriche 5.84 _ Ralis-Hamidou 6.05 1
Table E: Proportions of Heads of households having an income
Commune %)- Bab-EI-oued 86.85 Bologhine 91.71 Oued-Koriche 90.07 Rais-Hamidou 92.43
Table F: Number of households per source of income:
Communee . RctivityRetirements+ Overatotal Of: .. . ~~~~~;l ~~- pensions.n:-.. Bab-EI-Oued 7,159 5,139 14,160 Bologhine 4,627 2,105 7,341 Oued-Koriche 5,771 2,460 9,138 Ralis-Hamidou 2,386 901 3,556
Table G: Sources of revenue of the women Head of households (%)
Commune Activity Retirements + On a total of: ...... *,. ~pensions , .- ; Bab-EI-Oued 527 905 3,064 Bologhine 272 428 1,171 Oued-Koriche 1478 616 ! 1,853 Rals-Hamidou 92. 1136 1 1_446 49
Table H: Handicaps (significant)
CommuneiNature2of Motbrs Wuditory Visual; Mental Multiple the ~handicap ______handicap s Bab-EI-Oued 798 241 1,013 719 609 Bologhine 306 67 193 267 159 Oued-Koriche 452 102 369 424 210 RaIs-Hamidou 159 24 101 134 69
Table I: Title of home occupancy by the Head of the household
Commune^s. Owner ', Co: Tenant- Lodged ;ND. Total .______.__'__._- ow ners .:.___- free _ Bab-EI-Oued 1,834 6,167 4,590 1,305 264 14,160 Bologhine 2,793 1,282 1,667 1,401 199 7,341 Oued-Koriche 1,735 2,012 3,421 1,813 157 9,138 Rais-Hamidou 1,339 557 816 713 131 3,556
Table J: Percentage occupancy of the dwellings
Conmmuie's - we Bab-El-oued 94.80 Bologhine 95.68 Oued-Koriche 97.32 Rais-Hamidou 98.23 50
ATTACHMENT 2: ENVIRONMENTAL MANAGEMENT
This project originated from the recognized need to reduce the vulnerability to natural disaster of the Bouzareah massif in Algiers following the November 10, 2001 flash flood that provoked more that 700 hundred casualties in this area alone as well as hundreds of millions dollars material damages.
The cause of the disaster was a centennial rain that poured in the area during a few hours time period that transformed into an extremely violent flash flood of water and mud. The intensity of the flash flood was without doubt magnified by the improper urban development of the area that has taken place over the years. The environmental imbalance that it has caused ultimately decreased the capacity of the soil to absorb the run-off, destabilized the slopes and oued embankments and favored landslides and sudden soil erosion that caused the mixed flow of water and mud along the urbanized oued beds.
Most of the directly affected people whose houses or shelters have been destroyed beyond possibility of rehabilitation have been taken care and re-housed within a few weeks after the disaster. However, the authorities and the WVorld Bank recognized the need for a more thorough treatment of the vulnerability of the area. In particular, in order to avoid a new disaster, it has been decided de relocate about 5,000 families in the affected area who live in vulnerable and hazardous locations.
At the same time, the project will contribute to the design and implementation of a monitoring and early warning system in the region!of Algiers as a pilot towards extension of the system at a national level.
Finally, the project has identified medium-term activities that will contribute to significant decrease of the vulnerability of the area. These works will focus on slope and oueds improvements as well as drainage improvement of the. area. An integrated vulnerability reduction study of the affected area will serve as a decision:making instrument and will identify after an thorough multi-sector and multi-disciplinary audit' the institutional, regulatory and investment measures to be taken in the medium and long term.
Environmental Management Framework
The Algerian authorities and the World Bank recognize the necessity to take proper steps in order to ensure that the project will be developed upon sound environmental and social grounds. The environmental safeguards of the Bank as set forth by the Operational Policy 4.01. The emergency nature of the intervention and the applicability of O.P 8.50 which defines the streamlined preparation procedure for emergency project triggers article 13 of the O.P. 4.01 which waives the necessity of prior Environmental assessment for emergency project. However, an environmental management framework has been prepared prior to negotiation and details the expected impacts of the different components and indicates the mitigation measures to be developed during the course of the project. Being a framework this document mainly details the procedures for sub-project screening and for possible subsequent environmental assessments of sub-projects, supervision and monitoring procedures. The Environmental management framework indicates also the linkage with environmental section of the Vulnerability reduction study to be developed during project implementation. This study will analyze in detail the risks towards natural hazards of the area covered by the study and will identify institutional, regulatory and 51 investment measures in order to decrease the level of environmental risks for the population and the ecosystem.
Sub-components environmental screening
The EMF identifies the Inspectorate of Environment of the Wilaya of Algiers (IEWA) as the main entity concerned with the environmental management aspects of the project. The IEWA will develop a screening system for the main sub-component of the system such as:
(a) Works conducted by Forest Conservatory as part of Component 2 (b) Works conducted by the Waterworks directorate as part of Component 2 (c) Works conducted by the Housing directorate as part of Component 2, particularly with regards to: (i) Selection of sites for the new housing program (ii) Building of housing units
Environmental assessment as part of the vulnerability reduction study
Moreover, the IEWA will, review and provide comments and input during the preparation of the integrated vulnerability reduction study to be developed during project implementation.
Supervision and monitoring
The IEWA will carry supervision and monitoring responsibilities during project implementation. The format of the reporting system to be followed will be defined within the Project Implementation Manual.
The IEWA will also have the responsibility to coordinate the information and public disclosure activities of the project arrangements with regards to environmental and social protection in a manner consistent with what has been defined in the Resettlement Policy Framework and the Environmental Management Framework. 52
ATTACHMENT 3: REINFORCING THE COUNTRY CAPACITIES TO FACE NATURAL DISASTERS
For the government institutions for disaster management to respond efficiently to sudden and violent natural disasters such as the one hit the city of Algiers, it requires integrated and coordinated management efforts and essentially the capacity to forecast the upcoming disasters and mobilize adequate mitigation measures to reduce the potential impact the expected disasters. The first component of the project consists of a series of actions that are complementary, actions centered on the objective of the Component I that is the strengthening of national capacity for natural disaster management. The key elements comprising this component are as follows:
(a) The studies (Sub-component 1): In brief, the sub-component involves a study and the establishment of a rapid early alert system. The main objectives are: i) Developing the capacities to coordinate among concerned institutions; ii) Improving information and communication systems, iii) Determining the levels of risk and vulnerability of the communities and property in case of natural disasters, iv) Establishing the action plans and simulating scenarios for coordinated interventions, v) periodical performance evaluation; vi) Determining the responsibilities and the initiatives of the actors, and vii) Elaborating post-disaster risks management scenarios.
A set of two studies will be undertaken to deal with the proposal to draft solutions for situations of strong potential risks. The first study will focus on selected zones of the Wilaya of Algiers ("The study on vulnerability to natural hazards in the Wilaya of Algiers outside of Bouzareah Massif"). The second study focuses on the Bouzareah massif ("Integrated study on vulnerability reduction strategies of the Bouzareah Massif'). These two studies will define the nature of the corrective measures for Algiers and the priority measures for the protection of the Bouzareah massif against risks of flooding and seismic vibrations.
In addition, the Scientific study on the phenomenon that led to the disaster of November 9/10, 2001 will be conducted. This Study aims at upgrading the capacities of forecasting by the engineers and the scientists of the National Meteorology Office. This Office is entrusted with the forecasting of the weather in the country. This study deals also with the treatment and the analysis of data on the subject. Finally "The study of the integrated system for monitoring and early warning for floods in the Wilaya of Algiers" aims at assisting the ONM and DGPC in developing an early warning system for floods.
(b) The second important subcomponent concentrates on training: this goes hand in hand and is complementary with the objective of the first sub-component. This includes short-term training with hands-on equipment and software, training courses for enhancing the new technological skills and the interpretations of the radar information or use of imagery satellite. A training of trainers program is also included for selected schools that fall under the umbrella of the institutions such as the ONM, the ANRH or the DGPC to reinforce their educational programs.
(c) The third subcomponent is no less important and concerns the improvement of equipment for the concerned organizations to meet their needs during interventions wherever a disaster strikes. Needs assessment of these institutions was conducted based on both the emergency and post-disaster experiences of the November 2001 Floods in Algiers. 53
Equipment subcomponent is closely related to the reinforcement of institutional capacities. The equipments are required particularly in terms of; (i) field intervention (e.g. special contraptions for cleaning narrow alleys); (ii) technical or scientific facilities (e.g. Doppler Radar weather report for the improvement of the weather forecasting coverage); (iii) facilities in terms of data processing and the communication (e.g. software for GIS, Remote Detection and Remote Sensing Systems, satellite imagery, numeric cartography, database, internet and intranet for communication). 54
ATTACHMENT 4: INFRASTRUCTURE
Infrastructure works will be undertaken in two stages: the first stage, which takes place right after the identification and analysis of risks in the massif of Bouzareah zone, will define the actions to be followed in the Summary Draft Project (APS), and the second stage which will be dedicated to the elaboration of technical specifications to implement what are deemed important actions for the protection of the massif Bouzareah against the risks of floods and seismic vibrations. The planned "Integrated study on vulnerability reduction strategies of the Bouzareah Massif " will cover the above two stages (see Attachment 3).
First step of the Study
The objective of this Study is to evaluate the current status of vulnerability of the zone of the Bouzareah massif taking into consideration the risks of floods and seismic vibrations, to identify the potential damage, and to analyze the factors leading to such a situation.
Some of these factors to be considered in the Study are:
* Urbanization process not coherent to mitigate the risks that threaten the zone; * Badly sized channels with high level torrential incidence; * Unclean channels; * Instability of the slopes of the hills and Oueds characterized by gullies and erosions; * Uncollected garbage, badly stored rubbles and construction debris obstructing water drainage; * Insufficient, maladjusted, and/or badly maintained rain water drainage systems; * Insufficient and maladjusted sewerage system; * Insufficient management of running storm waters along the roads and channels endangering the circulation; and * Constructions not taking into account the risks of earthquakes in terms of locations and structures.
This Study will propose measures and actions to largely mitigate the damage in case of a disaster. In this regard, the Study concentrates on the following:
* Updating the urban plans of the target zone to define the land use in view of limiting the risks of natural disasters. This study includes a socio-economic analysis; * Establishing a plan for circulation to enhance a speedy evacuation of the population and to facilitate rescue squads' access to affected zones; * Geo-technical and seismic micro-zoning of the Bouzareah massif (i.e. 12 Oueds, 9 communes, stretching over 4,600 hectares), and of the fault zone to determine high-risk and moderate-risk zones; * Studying a hydraulic system for discharging storm water in Bouzareah massif, and conducting a computer simulation of the discharge into the big collectors in the project zone. An optimal option pertaining to the land use in the urban plans will be proposed based on the coefficients for run-offs calculated through computer simulations; and 55
Examining the existing storm water evacuation and sewerage systems. Through the diagnosis of the system, including exhaustive verifications over the primary structures, the Study determines the current capacity as well as the need for reinforcement and/or extension. It assesses how to the adapt the current drainage system (including the road network) to the new rainfall data and to sanitation functions.
Second step of the study
This stage will deal with the development of technical specifications for important works and goods that were identified and retained during the first stage (with the exclusion of retention basins and works linked to Beau Fraisier collector whose financing is included in tnis project but is going to be studied separately).
The management of the above two sections of this Study will be entrusted to the Directorate of Hydraulics of the Wilaya of Algiers. Directorate of Hydraulics will assume the role of the contracting party with the consulting firm. This Directorate will be in charge of the development of all tasks and assignments described in the Terms of Reference (Studies related to seismic aspects are excluded from the Terms of References). The seismic part (i.e., micro- zoning) will be elaborated on by the Construction Technical Control Agency (CTC) itself. This will require an adequate coordination between the consulting firms and the CTC so that the results of their works will be fully shared.
The first part will be entrusted to a consulting firm or to a consortium of firms upon an International Shopping procedure from a limited list of consulting firms that expressed their interest to participate.
A control committee will be convened under the Directorate of Hydraulics to ensure the supervision of the Study. This committee will be comprised of representatives of the different administrations concerned in this Study.
The second stage of the survey will follow the same procedure as the first.
Hydraulic works in the Basin of Oued Koriche.
The most important damage recorded during the November 10, 2001 flood occurred in the basin of Oued Koriche.
This basin slope extends over an area of 1,180 ha and has about 7 km in length, and discharges into Oued Koriche (Oued Ben Lezhar or Oued M'Kacel). Part of this basin is inhabited. The hydraulic network of this Oued is composed of 5 channels situated on the left bank. From upstream to downstream are connected to the following Oueds:
* Oued Beau Fraisier (covered by 950ml, 1.80 m by 1.20 m ovoidal collector); * Oued Scottto (covered by a 700ml, 1.80 m over 1.20 m ovoidal collector); * Oued Frais Vallon (covered by 100ml with a 1,000 mm dia collector); * Oued Sidi Medjbar (covered by 3,000 ml with a 1,500 mm of dia collector); and * Barranes Oued (covered by 1,400 ml with 1,250 mm dia collector). 56
Another collector is located on the right bank of Oued Koriche which is 1.5 Km in length (covered by a 1,400 ml with 1,250 mm dia collector).
The Oued Koriche (Oued Ben Lezhar or Oued M'Kacel) has an important collector of variable dimensions of ovoidal sections that is 5 m large by 3.80 m height at downstream sill of the central axis. A highway, "Chevalley-triolet road " was constructed above this collector. This collector captures the waters discharged from the channels and a water main of 600 mm diameter at the intersection of the highway.
Evaluations of the National Agency of Hydraulic Resources indicate that maximum discharge per second during the flood of November 10, 2001 have reached 143 m3/s at the Scotto footbridge and 730 m3/s at Triplet, contributing to a total of 2.6 millions/m3 and 0.8 millions/m3 of mud. This rainfall is estimated at 145 mm and its recurrence is every 90 years.
A significant loss of human lives has been recorded especially among the drivers of the Chevalley-Triolet highway that got blocked. Significant damage has been caused to the infrastructure, to private and public buildings, as well as to commercial activities (including factories and business). On the hydraulic networks, there was a collapse of the collector that ended up with a 20m-diameter opening, in addition to a nearly complete destruction of the 600 mm water main that feeds the collector through the basin of Oued Koriche.
Within the scope of this project, construction of flood retention basins (gabions) at the junction of the different channels with Oued Koriche is planned in order to lessen the impact of rising water. Their size will depend on the land available, the topography of the site, the nature of the soil, and the level. of the discharge of the Oueds. The precise site, the number, the measurements, as well as other features of these basins will be determined by the computer simulation planned during the first phase of the Study Initially, it is expected that the project will cover the construction of 10 basins with a common flood storage capacity of about 10,000 m3 (in Baranes, Sidi Medjbar, Frais Vallon, Beau Fraisier, Scotto and Oued Koriche) and a new water collector on the basin side of the Frais Vallon. Moreover, It is planned under this project, to build a channel in the sub-basin of Oued Beau Fraisier and to recalibrate the downstream section of Oued Beau Fraisier in order to improve the conditions of water out-flow in the sub-basin side. The measurements of these channels will also be fixed by a computer simulation, which will be undertaken by the "Study on vulnerability to natural hazards in the Wilaya of Algiers outside of Bouzareah Massif"
The designs of the outlined works within the framework of this component will be entrusted to a consulting firm or a consortium of firms in accordance with the procurement procedures of the World Bank.
The rnanagement of the study and related civil works, as well as the technical designs, will be entrusted to the Directorate of Hydraulics of the Wilaya of Algiers, which will be the contracting party with a consulting firm, and contractors.
"The study on vulnerability to natural hazards in the Wilaya of Algiers outside of Bouzareah Massif"
The objective of this Study is to identify, evaluate, and suggest solutions to the risks that threaten certain zones in Algiers (at the exclusion of Bouzareah massif which will be dealt separately). The risks to be treated within the framework of this Study relate to floods, mudflows, 57 landslide, seismic vibrations, and pollution. The Study will propose preliminary solutions to reduce these risks, to limit their impacts, and to rapidly rescue victims in case of disasters.
The following zones will be covered by this Study: zones of the Oued Hamiz to the East of Algiers, Oued El Harrach, Oued Ouchaia, Oued Kniss, and the zone of landslides prone area of Telemly situated in the heart of Algiers. These zones are known to be at high-risk.
The arrangement for managing this Study as well as related civil works is similar to the one retained for the Irrigated Study on vulnerability reduction strategic of the Bouzareah Massif.
Torrential correction of the Oueds of the massif of Bouzareah
To limit the debits of the massif of Bouzareah stream, it is necessary to intervene on its rivers (Oued Deux Moulins, Oued of the Zouaves, Oued Ravine Staura, Oued Sidi El Keibir, Oued Le Plateau, Oued Beau-Sejours, Oued Baranes and Oued La Vigie, and others). The proposed works in this project have the objectives of breaking the slope of the Oueds and of reducing the water rate discharge and the quantities of mud thereof. These works requires the installation of layers of gabions resting on the geo-textile in sections of the Oueds judiciously chosen and in banks threatened by crumbling. It will also have conducted the clearing-out of the mentioned beds of Oued and the restoration of their profile.
The management of this subcomponent will be entrusted to the General Directorate of Forests- Forest Conservancy- of the Wilaya of Algiers. The studies and supervision of works will be undertaken by a consulting firm to be recruited in accordance to the procurement procedures of the World Bank. The works will be entrusted to enterprises upon Invitation for bids.
Plantation on basins side of Oued Koriche and its channels
In order to slow down the water discharge, to imprpve the water retention capacity of the soil, and especially to consolidate the soil and limit the erosion, the forestation on the public land and plantation of fruit trees on the private land will continue within the Project framework. These plantings will essentially focus on the basin of the Oued Koriche. They extend over an area of about 600 ha (Planting of forest trees over 360 ha and planting of fruit trees on 240 ha).
The Management of this subcomponent will be entrusted to the General Directorate of the Forests - Conservancy of forests of the Wilaya of Algiers. The period of plantation depends on the seasons. 58
ATTACHMENT 5: HOUSING
1. BANK FINANCING AND TARGET BENEFICIARIES
This sub-component finances the cost of construction of housing, housing-related infrastructure and required technical studies for about 5,000 units of "logement locatif social" in Algiers, for the people who need to be resettled off-site, because: (a) they were affected by the Nov. 10, 2001 flood, or (b) they occupy hazardous sites within, or in the proximity of Bouzareah Massif. The Government's regulations on social housing allocation (Executive Decree 98-42) will be applied. The eligibility criteria for the Government's social housing program are those with income lower than twice the amount of the national guaranteed minimum salary (16,000 DA at the time of appraisal).
Right after the November 10, 2001 Flood, Wilaya of Alger has conducted a damage and risk assessment. Twelve communes covering the stock of 106,886 housing units have been affected by the flood (see Table A).
Commune Surface Population Housing Degraded Housing Housing in (km') stock illegal at risk need of h.ousing of intervention (a) natural (a+b) hazards
1 Bab El Oued 1.21 90,446 12,063 38 1,234 1,272 2 Oued Koriche 2.24 54,869 6,629 1,577 - 1,577 3 Bologhine 2.76 44,648 6,205 685 512 1,197 4 Rais Hamidou 4.94 21,195 3,036 353 33 386 5 Hammamet 8.54 20,764 3,550 33 133 166 6 Ain Benian 16 53,262 8,551 196 - 196 7 Bouzar6ah 12.44 71,468 11,051 693 693 8 El Biar 4.08 53,342 8,846 411 - 411 9 Sidi M'hamed 2.18 92,755 14,698 529 305 834 10 Alger Centre 3.7 99,554 18,032 - 288 288 11 El Madania 2.17 52,418 7,440 18 327 345 12 El Mouradia 1.91 30183 4,825 - 140 140 Total 62.17 685,904 106,886 4,533 1 2,972 7,505
Most of these 5,000 households have already submitted applications for the government social housing programs. The breakdown of beneficiaries per area is in Table 2. The other households (with incomes higher than 2 SNMG) will be assisted through other available government housing programs for which they are eligible such as "up-front grant" (AAP: Aide a l'Accesion Ala Propriete) and "Rent-to-Own" (Location-Vente) schemes.
The Wilaya of Algiers has identified seven potential sites, with estimated capacity to host a total of about 6,200 dwelling units. The Wilaya's Environment Inspection Department (Inspecteur de l'Environnement de la Wilaya d'Alger) and Construction Control Agency (Centre Genie Sismique) conducted a rapid preliminary environmental review. This preliminary review determined the seven sites as unencumbered, out of flood and landslide (glissement de terrain) 59 zones, and considered suitable for housing. This will be confirmed by detailed environmental studies during the early stage of the project implementation. These seven sites are public land. Land will be granted for free according the Governmental regulations regarding the land acquisition for social rental housing program. Wilaya of Alger will ensure timely land acquisition.
2. OBJECTIVES AND SECTOR CONTEXT The main objective of this sub-component is to respond to the pressing housing needs of the low-income households victimized by the Nov.10 flood and those at risk of natural disasters in the areas surrounding the Massif Bouzareah. These populations are at risk in case of future natural disasters, particularly at risk of landslides. By fulfilling their housing needs, it aims at reducing vulnerability to natural hazards.
This phenomenon of degraded illegal housing in environmentally hazardous area is a reflection of urbanization and housing supply constraints. According to the preliminary assessment conducted by Wilaya d'Alger, out of 5,000 identified beneficiary households, 3,212 households are in degraded illegal housing (habitat precaire), most of which are located along the slopes prone to landslides in Massif Bouzareah.
There are enormous supply constraints in Algeria and public production will not resolve these problems over the long-term. The key outstanding issues in the housing sector include; (a) continuation of the high level of Government's production of housing (80 percent in 1999-2001 period) - a level which inevitably inhibits private sector entry; (b) severe supply constraints in land availability, infrastructure development, and iitling; and, (c) failure to initiate serious reform of pricing and subsidies in the rental sector and in privatization of production and management.
Tableau B: Number of housing units delivered (1999 - 2001)
| Annual average Social rental housing 50,500 dwellings Ownership with housing subsidy/upfront 24,400 dwellings grant Housing purchase (<< promtionnel >>) 7,600 dwellings Self-construction 23,300 dwellings Total 105,800 dwellings (excluding housing allocated for civil servants)
Tableau C: State expenditure on housing
State - -expenditure State expenditure/total -- ______-__ (DA/dvellin g) . investrent in % Rent-to-Buy 2,243,000 69 % Social Rental Housing 1,086,000 100 % Incremental housing 78 1.000 44 % Bank-financed Low 656.000 75 % Income Housing Program I 60
As a result, the levels of both direct financing of recurrent and capital expenditures and of implicit subsidies remain high. Similarly, with the notable exception of housing finance - competition, and the increased efficiency that inevitably ensues - is, largely absent from production and management of the housing stock. Thus, the transformation of the housing sector towards a market economy and the shift of subsidy policies from subsidizing supply to subsidizing demand - remains to be more fully addressed.
The World Bank has collaborated with the Government of Algeria over the past ten years in the housing sector. To address these supply and institutional and policy reforms, the Bank's approach of collaboration with the Algerian Government in the housing sector has been to support; (a) low-income housing programs (Resorption d'Habitat Precaire: on-going Low-Income Housing Project); (b) transition to the market-based housing delivery systems through development of housing mortgage finance programs (Housing Finance Project to be approved in FY02); and (c) disaster rehabilitation and mitigation programs (on-going TEERP-Ain Temouchent Project).
This sub-component being designed as an emergency operation, it will not be tied to the on-going dialogue between the Algerian authorities and the Bank on the sector reform. Rather, for this sub-component, choice of social housing as an instrument to respond to the beneficiaries' housing needs will be dealt as an exception in consideration of its emergency nature of operations. However, to ensure the achievement of the sub-component objectives (the overall vulnerability reduction and improvement of living conditions of the beneficiary population), the sub-component is designed to be maintaining integrity with other sub-components on rehabilitation and disaster mitigation. For example, integrated studies on vulnerability proposed in Component I will facilitate the finalization of locations prone to natural disasters and thus the decision on the households required to be resettled.
3. LESSONS FROM OTHER PROJECTS REFLECTED IN THE DESIGN
The Bank is neither new in natural disaster rehabilitation operations nor housing sector in Algeria. Experiences from these projects emphasizes the following:
Importance of close inter-ministerial and inter-agency coordination in ensuring timely implementation of civil works; and,
Need for capacity enforcement to ensure close supervision of the projects' social and environmental impacts.
In the current Algerian system, local-level investments including housing are managed through deconcentrated sectors represented at the Wilaya level. For housing construction and land development, it involves several agencies and sectors concurrently such as hydraulics department, and electricity utility. For the acquisition of land, it involves communes and Direction des Domains. Thus the coordination at the Wilaya level becomes important to ensure timely implementation. The latter points tend to be neglected in the construction/infrastructure- focused operations. However, when the operations are targeted to the poor, this becomes crucial. In the design of this sub-component, interface of social and environmental aspects with the project implementation schedule through preparation and implementation of Environmental Management Plan and Resettlement Action Plan. 61
4. DESCRIPTION OF IMPLEMENTATION AGENCIES
Following are the agencies involved in the implementation:
Housing Department of Wilaya of Alger (La Direction de Logement de la Wilaya d'Alger). As a deconcentrated sector represented at the Wilaya level, this Department oversees the housing programs of Wilaya under the general guidance of the Ministry of Habitat. In this sub-component, it will provide overall supervision of the implementation. The Department will also be responsible for ensuring transfer of land title for the use of social housing programs.
Following key dates and steps have been reviewed and agreed with the Algerian authorities for implementation: a) Preparation and planning of technical studies, selection of contractors (Aug.02-March.03: 8 months); b) ToRs for social assessment and consultation (April 03-); c) Launching procurement for construction/civil works (Feb.03-: Estimated construction period is 16-18 months); d) Initiating the process of land transfer (July-Aug. 02) e) Preparation of Resettlement Action Plan (RAP) and publication of the beneficiary list (Dec.04); and f) Completion of construction and transfer of the population to new housing (by Feb.05) 62
ATTACHMENT 6: PROJECT COST, DISBURSEMENT AND FINANCIAL MANAGEMENT
PROJECT COST
The proposed loan of about $88.45 million would be disbursed over 4 years. Loan proceeds would be allocated as follows: (a) Works: Housing - 80 percent and other infrastructure - 60 percent; (b) Goods - 100 percent foreign expenditures, 100 percent ex-works local expenditures, and 70 percent other local expenditures; (c) Services - 76 percent of local expenditures for services of consultants domiciled within the territory of the Borrower and 62% of foreign expenditures for services of consultants not domiciled within the territory of the Borrower; and (d) 100 percent of foreign expenditures for training aboard, and 80 percent for training in local expenditure.
Withdrawals from the proceeds of the loan will be based on the traditional disbursement methods of the Bank, using direct payments, requests for special commitments and reimbursement applications, either fully documented or using Statement of Expenditures (SOEs) as per applicable procedures. As projected by Bank's standard disbursement profiles, disbursements would be completed four months after project closure. Disbursements would be made against standard Bank documentation.
SPECIAL ACCOUNT (SA)
To facilitate disbursement of eligible expenditures for goods and services the borrower will open and maintain a special account at the Banque d'Algerie (the Central Bank) to cover eligible project expenditures to be managed and administered by the Project Coordination Unit (CCSP). Authorized allocation of the special account would be US$ 3,000,000 covering an estimated 4 months of eligible expenditures financed by the loan. The CCSP will be responsible for submitting through Banque Algerienne de Developpement (BAD) monthly replenishment applications with appropriate supporting documentation for expenditures incurred and will retain and make the documents available for review by Bank supervision missions and project auditors. To the extent possible, all eligible project expenditures should be paid through the special account. Specifically all eligible project expenditures of less than US$ 50,000 equivalent shall be paid from the SA. The Special Account will be replenished through the submission of Withdrawal Applications on a monthly basis and will include reconciled bank statements and other documents as may be required.
USE OF STATEMENT OF EXPENDITURE (SOES)
The Bank may require withdrawals from the Loan Account to be made on the basis of Statements of Expenditure (SOE) for expenditures under: (a) goods under contracts costing less than $ 250,000 equivalent; and (b) works under contracts costing less than $ 500,000 (c) services of consulting firms costing less than $ 100,000 equivalent per contract, (d) services provided by individual consultants costing less than $ 50,000 per contract, all under such terms and conditions as the Bank shall specify by notice to the Borrower. All disbursements will be subject to the conditions of the Loan Agreement and the procedures defined in the Disbursement Letter.
RETROACTIVE FINANCING
Retroactive financing of up to $3 million would be applied to expenditures incurred after June 1, 2002, for consultant services, reforestation and other urgent works. Consultant services 03 are required to commence detailed designs, and some flood protection works and forestation require to be commenced before the next rainy season. Specifically, the contracts to be financed retroactively include: EPW2.04 and EPW2.05 (Gabion construction); EPW2.07 and EPW2.08 (Forestation); EPW2.14 (Miscellaneous consulting services); PM3.04 and PM3.06 (Equipment and Vehicles for Project Management).
INFORMATION FLOW
Homogenization and harmonization will be sought after as much as possible in areas such as the methods and accounting presentations, the follow-up financial reports, (so as to be in accordance with the models of the IBRD), and the software relative to the financial management of the project (follow-up procedures, evaluation, and Audit.). Therefore, the flux of documents will be undertaken in the following way:
(a) The PCU will transmit the original of the relevant receipts to the BAD for payment of operations and will keep a copy of the transmitted documents;
(b) The BAD will update the description form of the operation. It will keep the original of the documents and files as well as the debit statements issued by the Bank of Algeria or the World Bank. It will make a copy of the accounting situation of the special account to send as well as that of the loan account to PCU and DGRFE, and to the World Bank. Otherwise, a copy of this accounting will be transmitted monthly to the DGRFE; and
(c) The Bank of Algeria will transmit, to the BAD, a monthly summary of the special account even though no operation has been done during the considered month.
FINANCIAL MANAGEMENT
Four government agencies are involved in the project: The Wilaya of Algiers, ONM, DGPC, and DGPC). The Wilaya of Algiers is the implementing agency of the project and will establish Project Coordination Unit (PCU) to facilitate the implementation. The financial management functions on the project will be divided between the PCU and BAD (Banque Algerienne de Developpement). The PCU will be responsible for the project accounting and reporting functions including: booking accounting transactions, record keeping, verification of supporting documents, preparing bank reconciliation, preparing periodic reports and financial statements, as well as monitoring the Special Account (established at the Central Bank of Algeria). While, BAD will be responsible for the administration of the Special Account. BAD will issue payment orders (withdrawn on the Special Account in the Central Bank) after verification of the supporting documents received along the payment vouchers received from the PCU. BAD will keep track of transactions incurred on the Special Account and prepare Withdrawal Application to replenish the Special Account.
The financial management assessment conducted for the involved agencies revealed that the financial management systems in place are adequate and meet the Bank minimum requirements except for the generation of project's required reports. It is expected that at the implementing agency (Wilaya of Algiers) it needs six months to upgrade the accounting and reporting to generate the required reports. Meanwhile, the PCU will develop computer spreadsheets to facilitate preparation of the reports. A qualified consultant will be appointed to upgrade the accounting and reporting system and prepare Project Implementation Manual (PIM). 64
The financial management and payment procedures as well as procurement procedures will be covered in the PIM.
Financial Monitoring Reports (FMR) will be prepared for the project on quarterly basis within 45 days of the end of each quarter. The set of FMRs will include: summary progress report on project implementation, cost per component for the quarter and cumulative, costs incurred per expenditures type, project balance sheet, and procurements incurred on contracts below the stated threshold.
The PCU will prepare annual project financial statements (project balance sheet, Special Account statement, and cash flow) and arrange with the Bank for their auditing in accordance with International Standards on Auditing by an independent auditor acceptable to the Bank, and under terms of reference acceptable to the Bank. The audited financial statements along with the auditor's opinion will be sent to the Bank within six months of year-end.
FINANCIAL MANAGEMENT REPORTS
The PCU will ensure the overall accounting and bookkeeping for the specific accounts of the Project, the development of financial statements of the Project, and the Quarterly Reports. The main rules of reporting are the following:
a) Commitments: the Financial Management Specialist of the Project will post them. The database of the BAD will be reinforced by the recording of information on all the contracts and the contractors (amount, implementation deadline, procurement methods, contact information, reference of the approvals, percentage of financing, method of payment, etc.). At this level, the BAD will ensure the introduction of the codes reflecting the budgetary subdivision, the category, the component, and cost assignment. These codes are essential to ensure the development of the Financial Statement and Project Management Report (PMR) as well as any other report to be presented to the head of the PCU as part of the monitoring and decision-making processes. b) Disbursement forecasts: The data on payment estimates will be introduced in the database by the implementation agencies based on the information on the signed contracts registered in the initial plans against the information on the actual payments. This data will be updated whenever possible to record any change that would have an impact on the planning. The changes will be submitted for the preliminary agreement to the Director of PCU before entering them in the database. c) Invoice checkin2 and effecting Dayments: Upon receipt of the invoices, the BAD will enter the amount and the date into the systems of the concerned party's file to reflect in the use of funds. Upon approval of the payment and the submission of the Order of Payment", the date of issuance of the order of payment will be seized by the PCU and added to the database. d) Payments: upon receipt of the monthly balance sheet issued by the BAD, the implementation agencies will ensure the entry of the executed payments as well as their value dates in the file of the concerned third party in order to reflect the use of funds. It will also introduce all amounts relative to the replenishing of the special account and payments upon presentation of statements of expenditures linked to the sources of funds. 65 e) Account Reconciliation: The system to be installed will determine the available balance in an automatic manner. The implementation agencies will ensure a monthly reconciliation between the accounting and financial balance and will submit it to the approval of the head of the PCU. Any discrepancy will lead to a specific control in the form of an adjustment of the accounts or claims addressed to the BAD for adjustment. The state of final reconciliation will be submitted for the approval of the PCU. f) Proiect Management Reports: At the end of every quarter, the PCU will publish the Financial Management Reports in accordance with the samples communicated by the IBRD. This final report, duly approved, will be transmitted to the World Bank within the 45 days that follow the end of each quarter. This report will indicate the following:
(i) The source and use of fund; (ii) Procurement Report; (iii) Analysis of the commitments and payments by component; (iv) Analysis of the commitments by category; and, (v) Analysis of % of works completed and payments made by contract, with indication of the percentages of advancement and the discrepancies.
The different analyses will reflect the actual status quarterly and annually since the beginning of the Project. The estimates will be indicated and will be accompanied by the registered gaps pertaining to the performance along with any rationale of these gaps. g) Proiect Financial Statements: These financial statements will include the following:
(i) Sources and use of funds by component; (ii) Analysis of the commitments and payments by contract and category; (iii) Analysis of the commitments and payments by category of expenditure and type of payment (budget, special account, statements of expenditure, direct payment); (iv) A statement of reconciliation of the special account; and, (v) A statement of reconciliation of the Loan.
The analyses will show the existing transactions of the fiscal year in question as well as those in the previous fiscal years and the aggregates at the closing date. The approved Financial Statement will be submitted to the Auditors within reasonable delays allowing them to perform their audit and to transmit their annual report in a timely manner, six months at the latest after the fiscal year. h) Audit Report: The analysis of the Financial Statements by an Auditor will lead to the preparation of an audit report which will comprise the following:
(i) The audited Financial Statements; (ii) A professional justified opinion on the Financial Statements, the special account and the statements of expenditure. (The opinion must be in conformity with the generally accepted standards); (iii) Any irregularity having a significant impact on the accounts, the special account or the statements of expenditures, and; (iv)Any useful commentary presented in the form of notes to the Financial Statements for a better understanding of the financial situation of the Project, by reference to the principle of good information. 66
The Auditor will ascertain the examination of internal control arrangements and will indicate in a letter ("Management Letter"), any relevant weakness, the risk thereof, a reasonable recommendation to solve the issue, as well as the commentaries of the concerned Authorities. The Auditor will attempt to finalize his works, issue the audit report, as well as the letter of internal checking and will transmit them on time to the World Bank.
The specific terms of reference will be issued by the Bank and transmitted to the Auditor upon effectiveness of the Loan.
Action plan for the accounting and financial management of the Project
Action - Responsibility-
1. Organization of the PCU and official designation of MoI, Wilaya of Algiers, the team of the project 2. Acquirement of eight computers (PCs) and of other PCU necessary office equipment for the PCU 3. Acquirement of a software for financial management PCU 4. Preparation of a note on financial and accounting PCU procedures (including the formats of reporting such as chapters or annex of the draft project implementation plan, PIP) to be finalized during the negotiations of the loan 5. Preparation of detailed project accounting and PCU financial procedures, including an accounting plan (Chart of Accounts), as part of the final version of the Project Implementation Plan if necessary, hire a consultant for review and finalization of the detailed document 6. Terms of reference for the audits, to prepare for during the mission of the project launching, 7. Release of the first Project Management Report PCU (PMR) quarterly, on December 31, 2002, and its transmission to the Bank 8. Presentation of PMR acceptable to the Bank, using PCU the agreed upon format 9. Assessment of the financial management and IBRD reporting system by a mission of the World Bank.
IMAGINGI
Report No.: T 7549 AL Type: TAN