Bhutan's Accelerating Urbanization
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Document of The World Bank Public Disclosure Authorized Report No.: 62072 Public Disclosure Authorized PROJECT PERFORMANCE ASSESSMENT REPORT KINGDOM OF BHUTAN URBAN DEVELOPMENT PROJECT (CREDIT 3310) June 13, 2011 Public Disclosure Authorized IEG Public Sector Evaluation Independent Evaluation Group Public Disclosure Authorized Currency Equivalents (annual averages) Currency Unit = Bhutanese Ngultrum (Nu) 1999 US$1.00 Nu 43.06 2000 US$1.00 Nu 44.94 2001 US$1.00 Nu 47.19 2002 US$1.00 Nu 48.61 2003 US$1.00 Nu 46.58 2004 US$1.00 Nu 45.32 2005 US$1.00 Nu 44.10 2006 US$1.00 Nu 45.31 2007 US$1.00 Nu 41.35 2006 US$1.00 Nu 43.51 2007 US$1.00 Nu 48.41 Abbreviations and Acronyms ADB Asian Development Bank BNUS Bhutan National Urbanization Strategy CAS Country Assistance Strategy CPS Country Partnership Strategy DANIDA Danish International Development Agency DUDES Department of Urban Development and Engineering Services (of MOWHS) GLOF Glacial Lake Outburst Flood ICR Implementation Completion Report IEG Independent Evaluation Group IEGWB Independent Evaluation Group (World Bank) MOF Ministry of Finance MOWHS Ministry of Works & Human Settlement PPAR Project Performance Assessment Report RGOB Royal Government of Bhutan TA Technical Assistance Fiscal Year Government: July 1 – June 30 Director-General, Independent Evaluation : Mr. Vinod Thomas Director, IEG Public Sector Evaluation : Ms. Monika Huppi (Acting) Manager, IEG Public Sector Evaluation : Ms. Monika Huppi Task Manager : Mr. Roy Gilbert i Contents Principal Ratings ................................................................................................................ iii Key Staff Responsible........................................................................................................ iii Preface................................................................................................................................. v Summary ........................................................................................................................... vii 1. Background: Bhutan’s Accelerating Urbanization ......................................................... 1 2. Objective, Design, and their Relevance .......................................................................... 3 3. Implementation Experience ............................................................................................ 4 Safeguards ....................................................................................................................6 Monitoring and Evaluation (M&E) .............................................................................6 4. Components Delivered and Results Achieved ................................................................ 7 Delivery of project urban infrastructure and services ..................................................8 Delivery of local financial and institutional capacity ................................................10 Results in better quality-of-life through the enhanced level and coverage of services .......................................................................................................................11 Efficiency ...................................................................................................................13 5. Ratings .......................................................................................................................... 14 Outcome .....................................................................................................................14 Risk to Development Outcome ..................................................................................14 Bank Performance ......................................................................................................14 Borrower Performance ...............................................................................................15 6. Lessons .......................................................................................................................... 16 Annex A. Basic Data Sheet ............................................................................................... 19 Annex B. Specific Results from Project Towns ............................................................... 22 Trongsa ......................................................................................................................22 Jakar ...........................................................................................................................24 Wangdue ....................................................................................................................25 Paro ............................................................................................................................26 Other towns ................................................................................................................27 Annex C. Map ................................................................................................................... 29 This report was prepared by Roy Gilbert who assessed the project in December 2010. The report was peer reviewed by Keith Pitman and panel reviewed by Peter Freeman. Maria Margarita Sanchez provided administrative support. ii Boxes Box 1. Bhutan Urban Development Project – Design ....................................................... 3 Tables Table 1-1. Population of Project Districts (urban + rural) .................................................. 2 Table 3-1. Planned and Actual Project Investments by Districts and Sectors .................... 5 Table 4-1. Project Districts’ Improved Urban Services 1999-2009 ................................... 7 Table 4-2. Public Health Improvement in Project Districts and Non-Project Districts .... 12 Figures Figure 1. Trongsa's challenging site (from across canyon) ................................................ 1 Figure 2. Trongsa'a challenging site (in-town) ................................................................... 1 Figure 3. Solid waste collection - Wangdue ....................................................................... 9 Figure 4. Footpath to the Dzong - Trongsa ....................................................................... 10 Figure 5. Undermining efficiency: Jakar’s completed but unoccupied subdivision ......... 13 Figure 6. Elevated public plaza – Trongsa (view from below)........................................ 23 Figure 7. Elevated public plaza – Trongsa (view from above) ......................................... 23 Figure 8. River bank retaining wall and groynes – Jakar ................................................. 25 Figure 9. Damaged street furniture - Paro ........................................................................ 26 iii Principal Ratings ICR* ICR Review* PPAR Outcome Moderately Moderately Moderately Unsatisfactory Unsatisfactory Satisfactory Risk to Development Moderate Moderate Moderate Outcome Bank Performance Moderately Moderately Moderately Satisfactory Satisfactory Satisfactory Borrower Performance Satisfactory Moderately Satisfactory Satisfactory * The Implementation Completion and Results Report (ICR) is a self-evaluation by the responsible Bank department. The ICR Review is an intermediate IEG product that seeks to independently verify the findings of the ICR. Key Staff Responsible Task Manager/ Division Chief/ Project Leader Sector Director Country Director Appraisal Evangeline Kim Frannie Leautier John Wall Cuenco Completion Toshiaki Keicho Sonia Hammam Alastair McKechnie iv IEG Mission: Improving development results through excellence in evaluation. About this Report The Independent Evaluation Group assesses the programs and activities of the World Bank Group for two purposes: first, to ensure the integrity of the Bank’s self-evaluation process and to verify that the Bank’s work is producing the expected results, and second, to help develop improved directions, policies, and procedures through the dissemination of lessons drawn from experience. As part of this work, IEG annually assesses 20-25 percent of the World Bank’s lending operations through fieldwork. In selecting operations for assessment, preference is given to those that are innovative, large, or complex; those that are relevant to upcoming studies or country evaluations; those for which Executive Directors or Bank management have requested assessments; and those that are likely to generate important lessons. To prepare a Project Performance Assessment Report (PPAR), IEG staff examine project files and other documents, visit the borrowing country to discuss the operation with the government, and other in-country stakeholders, and interview Bank staff and other donor agency staff both at headquarters and in local offices as appropriate. Each PPAR is subject to internal IEG peer review, Panel review, and management approval. Once cleared internally, the PPAR is commented on by the responsible Bank department. The PPAR is also sent to the borrower for review. IEG incorporates both Bank and borrower comments as appropriate, and the borrowers' comments are attached to the document that is sent to the Bank's Board of Executive Directors. After an assessment report has been sent to the Board, it is disclosed to the public. About the IEG Rating System for Public Sector Evaluations IEG’s use of multiple evaluation methods offers both rigor and a necessary level of flexibility to adapt to lending instrument, project design, or sectoral approach. IEG evaluators all apply the