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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 37981-KE PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT Public Disclosure Authorized lN THE AMOUNT OF SDR 57.8 MILLION (US$86.0 MILLION EQUIVALENT) TO THE GOVERNMENT OF KENYA FOR A WESTERN KENYA COMMUNITY DRIVEN DEVELOPMENT AND FLOOD MITIGATION PROJECT Public Disclosure Authorized February 26,2007 SD Operations for Eastern Africa Eastern Africa Country Cluster Two Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective January 3 1,2007) Currency Unit = Kenya Shillings (Kshs.) US$1 = 70.45Kshs US1.48945 = SDR 1 FISCAL YEAR July 1 - June 30 ABBREVIATIONS AND ACRONYMS ACT Artemisinin Combination Therapy ALRMP Arid Lands Resource Management Project BCM Billion Cubic Meters CAAC Catchment Area Advisory Committee CAP Community Action Plan CAS Country Assistance Strategy CBA Cost-Benefit Analysis CBMIS Community Based Management Information S ys tem CBO Community-Based Organization CDC Community Development Committee CDD Community Driven Development CDF Constituency Development Fund CMS Catchment Management Strategies CORPS Community Owned Resource Persons CPIA Country Policy and Institutional Assessment CQ Consultants Qualifications CSA Country Social Analysis cso Civil Society Organization DANIDA Danish International Development Assistance DCU District Coordination Unit DfID The United Kingdom Department for International Development DIR Detailed Implementation Review DOMC Division of Malaria Control DPC District Project Coordinator DSG District Steering Group ECA Economic Crimes Act EL4 Environment Impact Assessment EMP Environmental Management Plan ESMF Environmental and Social Management Framework FA Financing Agreement FMR Financial Monitoring Report FY Fiscal Year FOR OFFICIAL USE ONLY GAC Governance and Anticorruption GAP Governance Strategy and Action Plan GEF Global Environment Fund GIS Geographic Information System GJLOS Governance Justice Law, Order and Security GSPK Governance Strategy for Building a Prosperous Kenya GTZ Deutsche Gesellschaft fur Technische Zusammenarbeit HA Hectares HMIS Health Management Information Systems IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding ICIPE International Centre ofInsect Physiology and Ecology IDA International Development Association IEC Information, Education and Communication IFMIS Integrated Financial Management and Information System IGA Initial Governance Assessment IMF International Monetary Fund IP-ERS Investment Program for the Economic Recovery Strategy IP Indigenous Peoples IPP Indigenous Peoples Plan IPPF Indigenous Peoples Planning Framework IPSS Indigenous Peoples’ Screening Structure JRCB Institutional Reform and Capacity Building IRR Internal Rate of Return IRS Indoors Residual Spraying ITN Insecticide-TreatedNets J4P Justice for the Poor KACAl3 Kenya Anti-Corruption Advisory Board KACC Kenya Anti-Conuption Commission KAPP Kenya Agricultural Productivity Project KAPSLM Kenya Agricultural Productivity and Sustainable Land Management Project KARI Kenya Agricultural Research Institute KDHS Kenya Demographic and Health Survey KEEP Kakamega Environmental Education Program KFS Kenya Forest Service KNAO Kenya National Audit Office KWSP Kenya Water and Sanitation Sector Programme LATF Local Authority Transfer Fund LCS Least Cost Selection LIB Limited International Bidding LLrn Long Lasting Insecticide-Treated Nets LVEMP Lake Victoria Environnemental Management Project LVNWRMA Lake Victoria North Water Resources Management Authority M&E Monitoring and Evaluation MAT Mobile Advisory Team 11 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. MCAP Micro-Catchment Action Plan MDG Millennium Development Goal MICC Malaria Inter-Agency Coordinating Committee MOF Ministry ofFinance MOH Ministry ofHealth MTEF Medium Term Expenditure Framework MTR Mid-Term Review MoWI Ministry ofWater and Irrigation NBI Nile Basin Initiative NCB National Competitive Bidding NCTIP Northern Corridor Transport Improvement Project NEMA National Environment Management Agency NEPAD New Partnership for Africa’s Development NGO Non-Governmental Organization NIB National Irrigation Board NPV Net Present Value NRM Natural Resource Management NSSF National Social Security Fund O&M Operation and Maintenance OP Office ofthe President ovcs Orphans and Vulnerable Children PAPS Project Affected Persons PCU Project Coordination Unit PDO Project Development Objective PES Payment for Environmental Services PFM Public Financial Management PHRD Policy and Human Resource Development PIP Project Implementation Plan PLWA People Living with HIV/AIDS PPF Project Preparation Facility PPOA Public Procurement Oversight Authority PRA Participatory Rural Appraisal PRSP Poverty Reduction Strategy Paper PSC Project Steering Committee RAP Resettlement Action Plan RBM Results-based Management RGS River Gauging Station RPF Resettlement Policy Framework SA Social Analysis SBD Standard Bidding Document SLDA Swedish International Development Co-operation Agency SIL Specific Investment Loan SLM Sustainable Land Management SLO State Law Office SOE Statement ofExpenditure S WAp Sector Wide Approach 111 SWC Soil and Water Conservation TASAF Tanzania First Social Action Fund Project UNDP United Nations Development Programme USAID The United States Agency for International Development WHO World Health Organization WKCDDFM Western Kenya Community Driven Development and Flood Mitigation WKIEMP Western Kenya Integrated Ecosystem Management Project WMO World Meteorological Organization WRM Water Resource Management WRMA Water Resources Management Authority WRUA Water Resources Users Association wss Water Supply and Sanitation WSTF Water Services Trust Fund YAP Youth Action Plan ~ Acting Vice President: Hartwig Schafer Country Director: Colin Bruce Sector Manager: Karen Brooks Task Team Leader: Nyambura Githagui iv KENYA Western Kenya Community Driven Development and Flood Mitigation Project CONTENTS Page A . STRATEGIC CONTEXT AND RATIONALE ......................................................... 1 1. Country and sector issues......................................................................................... 1 2 . Rationale for Bank involvement .............................................................................. 3 3 . Higher level objectives to which the project contributes ......................................... 4 B. PROJECT DESCRTPTION......................................................................................... 4 1. Lending instrument .................................................................................................. 4 2 . Project development objective and key indicators ................................................... 5 3 . Project components .................................................................................................. 6 4 . Lessons learned and reflected in the project design............................................... 12 5 . Alternatives considered and reasons for rejection ................................................. 13 C . IMPLEMENTATION............................................................................................... 14 1. Partnership arrangements ......................................................... :............................. 14 2 . Institutional and implementation arrangements ..................................................... 14 3 . Monitoring and evaluation of outcomes/results., ................................................... 17 4 . Sustainability.. .......................................................................................................... 18 5 . Critical risks and possible controversial aspects .................................................... 19 6 . Loadcredit conditions and covenants .................................................................... 19 D. APPRAISAL SUMMARY ....................................................................................... 21 1. Economic and financial analyses ........................................................................... 21 2 . Technical. ............................................................................................................... 22 3 . Fiduciary ................................................................................................................ 24 4 . Social...................................................................................................................... 25 5 . Environment........................................................................................................... 28 6 . Safeguard policies .................................................................................................. 31 7 . Policy Exceptions and Readiness ........................................................................... 31 Annex 1: Kenya’s Fight against Corruption: Progress. Setbacks. New Frontiers ........... 32 Annex 2: Country and Sector or Program Background ................................................... 49 Annex 3: Major Related Projects Financed by the Bank and/or other Agencies ............
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