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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 71827-AL PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED LOAN IN THE AMOUNT OF € 31 MILLION (US$ 40 MILLION EQUIVALENT) TO ALBANIA FOR A WATER RESOURCES AND IRRIGATION PROJECT Public Disclosure Authorized OCTOBER 18, 2012 This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and Public Disclosure Authorized the updated document will be made publicly available in accordance with the Bank’s policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective September 30, 2012) Currency Unit = Albania Lek (ALL) 1 ALL = 0.009229 US$1 1 US$ = 108.3500 ALL FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ACOLD Albania Commission on Large Dams MEFWA Ministry of Environment, Forestry and Water AMOFTS Albania Ministry of Finance Treasury System Administration CPS Country Partnership Strategy MIS Management Information Systems CQ Selection based on Consultants Qualifications MTB/EF Medium Term Budget/Expenditure Framework DSDC Department of Strategy and Donors Coordination NCB National Competitive Bidding DB Drainage Board NSDI National Strategy for Development and DSS Dam Safety Secretariat Integration DC Direct Contracting NSRD National Strategy for Rural Development EA Environmental Assessment NWC National Water Council E(S)IA Environmental (and Social) Impact Assessment O&M Operation and Maintenance ESFD Environmental and Social Framework Document OP World Bank Operational Policy E(S)MP Environment (and Social) Management Plan PDO Project Development Objective ESP Environmental Services Project PEIR Public Expenditure an Institutional Review EU European Union POM Project Operations Manual FBS Fixed Budget Selection PP Position Paper FM Financial Management PPIAF Public-Private Infrastructure Advisory Facility FS Feasibility Study PPP Public-Private Partnership GDP Gross Domestic Product PSC Project Steering Committee GDLWS General Directorate for Land, Water, and Services RFP Request for Proposals GDWA General Directorate of Water Administration QBS Quality-Based Selection GIS Geographical Information Systems QCBS Quality and Cost-Based Selection GOA Government of Albania RAP Resettlement Action Plan HVC High Value Crops RBA River Basin Agency I&D Irrigation and drainage RBC River Basin Council IBRD International Bank for Reconstruction and RDF Regional Development Fund Development RPF Resettlement Policy Framework IC Individual Consultant Selection SSS Single Source Selection ICB International Competitive Bidding SBD Standard Bidding Documents IMT Irrigation Management Transfer Sida Swedish International Development Agency IPA Instrument for Pre-Accession Assistance TOR Terms of Reference IWRM Integrated Water Resources Management TS Technical Secretariat LCS Least-Cost Selection UNECE United Nations Economic Commission for Europe LG Local Government WB World Bank LWR Law on Water Resources WFD Water Framework Directive M&E Monitoring and Evaluation WRIP Water Resources and Irrigation Project MAFCP Ministry of Agriculture, Food and Consumer WRM Water Resources Management Protection WUA/O Water Users’ Association/Organization MCA Multi-Criteria Analysis Vice President: Philippe H. Le Houerou Country Director: Jane Armitage Country Manager Kseniya Lvovsky Sector Manager: Dina Umali-Deininger Task Team Leader: IJsbrand H. de Jong ALBANIA Water Resources and Irrigation Project CONTENTS Page I. STRATEGIC CONTEXT .................................................................................................... 1 A. Country Context .................................................................................................................. 1 B. Sectoral and Institutional Context ....................................................................................... 1 C. Higher level objectives to which the project contributes .................................................... 3 II. PROJECT DEVELOPMENT OBJECTIVE ..................................................................... 5 A. PDO..................................................................................................................................... 5 1. Project Beneficiaries ........................................................................................................... 5 2. PDO-level Results Indicators .............................................................................................. 5 III. PROJECT DESCRIPTION ............................................................................................. 6 A. Project components ............................................................................................................. 6 B. Project Financing ................................................................................................................ 9 1. Lending Instrument ............................................................................................................. 9 2. Project Cost and Financing ............................................................................................... 10 C. Lessons learned and reflected in the project design .......................................................... 10 IV. IMPLEMENTATION .................................................................................................... 11 A. Partnership arrangements .................................................................................................. 11 B. Institutional and implementation arrangements ................................................................ 12 C. Results Monitoring and Evaluation .................................................................................. 12 D. Sustainability..................................................................................................................... 13 V. Key Risks and Mitigation Measures ................................................................................. 14 A. Risk Rating Summary Table ............................................................................................. 14 B. Overall Risk Rating Explanation ...................................................................................... 14 VI. APPRAISAL SUMMARY ............................................................................................. 15 A. Economic and financial analyses ...................................................................................... 15 B. Technical ........................................................................................................................... 17 C. Financial Management and Disbursement Arrangements ................................................ 17 D. Procurement ...................................................................................................................... 18 E. Social Sustainability, Gender and Social Safeguards ....................................................... 20 F. Environment (including Safeguards) ................................................................................ 21 G. Other Safeguards Policies ................................................................................................. 22 Annex 1: Results Framework and Monitoring ........................................................................ 25 Annex 2: Detailed Project Description ...................................................................................... 28 Annex 3: Implementation Arrangements ................................................................................. 42 Annex 4: Operational Risk Assessment Framework ............................................................... 56 Annex 5: Implementation Support Plan ................................................................................... 62 Annex 6: Team Composition ..................................................................................................... 63 Annex 7: Economic and Financial Analysis ............................................................................. 64 Annex 8: Specific risk issues /Social Development and Sustainability................................... 71 Annex 9: PPP in Irrigation Service Delivery ............................................................................ 72 Annex 10: Maps........................................................................................................................... 78 PAD DATA SHEET Albania Water Resources and Irrigation Project (P121186) PROJECT APPRAISAL DOCUMENT . EUROPE AND CENTRAL ASIA (ECSAR) . Basic Information Project ID Lending Instrument EA Category Team Leader P121186 Specific Investment Loan B - Partial Assessment IJsbrand H. de Jong Project Implementation Start Date Project Implementation End Date 01-Mar-2013 30-Nov-2017 Expected Effectiveness Date Expected Closing Date 28-Feb-2013 31-May-2018 Joint IFC: No Sector Manager Sector Director Country Director Regional Vice President Dina Umali-Deininger Laszlo Lovei Jane Armitage Philippe H. Le Houerou . Borrower: Albania Responsible Agency: Ministry of Agriculture, Food and Consumer Protection Contact: Irfan Tarelli Title: Director General, Department of Land, Water and Services Telephone No.: +355 4 2223917 Email: [email protected] Responsible Agency: Ministry of Environment, Forestry and Water Administration Contact: Arjan Madhi Title: Director General, Department of Water
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