Document of The World Bank Public Disclosure Authorized FOR OFFICIAL USE ONLY Report No: 49557-GW PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED GRANT IN THE AMOUNT OF SDR3.3 MILLION (US$5.0 MILLION EQUIVALENT) TO THE REPUBLIC OF GUINEA-BISSAU FOR A RURAL COMMUNITY-DRIVEN DEVELOPMENT PROJECT (RCDD) Public Disclosure Authorized August 28,2009 Human Development Sector Africa Technical Families, Social Protection (AFTSP) Country Department 1 AFCF 1 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 July 3 1,2009) CurrencyUnit = XOF US$1 = 475 XOF 1 XOF = US$0.0021 FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS AfDB African Development Bank ASC Administrative Sector Council (Conselho Directivo Sectorial) CAIA Ce'ZuZa de AvaZiaqGo dos Impactos Ambientais (Cell for Environmental Impact Evaluation) CBMP Coastal and Biodiversity Management Project CBO Community-based Organization CDD Community-Driven Development CEM Country Economic Memorandum CG Comite' de GestGo (Community Management Committee) CIFA Country Integrated Fiduciary Assessment CPAR Country Procurement Assessment Report CQS Consultant' s Qualification Selection cso Civil Society Organization DA Designated Account DGCP DirecqGo Geral dos Concursos Pdblicos (Directorate for Public Procurement) EC European Commision EFSSP Emergency Food Security Support Project ESMF Environmental and Social Management Framework FCFA African Financial Community Franc FIAL Fundo para Iniciativas Am bientais Locais (Local Environment Initiative Fund) FMR Financial Management Reporting FMS Financial Management System GDP Gross Domestic Product GP Grupo Promotor (Micro-project Implementation Group) GPN General Procurement Notice GoGB Government of Guinea-Bissau IBRD International Bank for Reconstruction and Development IC Individual Consultant ICB International Competitive Bidding IDA International Development Association IEG Independent Evaluation Group IFAD International Fund for Agricultural Development IFR Interim Financial Report IMF International Monetary Fund .. 11 FOR OFFICIAL USE ONLY IPSAS International Public Sector Accounting Standards IRR Internal Rate of Return ISA International Standards on Auditing ISN Interim Strategy Note LDP Local Development Plan M&E Monitoring and Evaluation MEPRI Ministry of Economy, Planning and Regional Integration MFI Micro-finance Institution MIS Management Information System NCB National Competitive Bidding NGO Non-Governmental Organization NPV Net Present Value NSC National Steering Committee NTT National Technical Team O&M Operations and Maintenance PAD Project Appraisal Document PAIGC Partido African0 da Independhcia da Guind-Bissau e Cabo Verde (African Party for Independence of Guinea-Bissau and Cape Verde) PCU Project Coordination Unit PAP Proj ect-Affected PeoplePopulation PDO Project Development Objective PER Public Expenditure Review PIM Project Implementation Manual PM&E Participatory Monitoring and Evaluation POM Project Operational Manuel PPF Project Preparation Facility PRD Participatory Rural Development PRSP Poverty Reduction Strategy Paper QCBS Quality- and Cost-Based Selection RA Regional Advisor RAP Resettlement Action Plan RC Regional Council (Conselho Directivo Regional) RPD Regional Planning Delegate RCDD Rural Community-Driven Development RPF Resettlement Policy Framework RPO Regional Planning Office (Gabinete de Planifcaqclo Regional) SPF State and Peace-Building Fund SYSCOA SystBme Comptable Ouest Afiicain (West African Accounting System) TORS Terms of Reference UN United Nations UNCDF United Nations Capital Development Fund UNDB United Nations Development Business UNDP United Nations Development Program US$ United States Dollar WAEMU West African Economic and Monetary Union WB World Bank 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. XOF West African CFA Vice President: Obiageli Katryn Ezekwesili Country Director: Habib Fetini Sector Director Yaw Ansu Sector Manager: Lynne D. Sherburne-Benz Task Team Leader: Michael Drabble iv TABLE OF CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE .................................................................. 3 A . Country and sector issues .................................................................................................... 3 B.. Rationale for Bank involvement .......................................................................................... 4 C . Higher-level objectives to which the Project contributes .................................................... 6 I1. PROJECT DESCRIPTION.................................................................................................. 6 A . Lending inst~ment.............................................................................................................. 6 .. B. Project development objective ............................................................................................. 7 C . Project Components ............................................................................................................. 7 D. Lessons learned and reflected in the project design .......................................................... 12 E. Alternatives considered and reasons for rejection ............................................................. 13 I11. IMPLEMENTATION......................................................................................................... 14 A . Partnership arrangements .................................................................................................. 14 B. Institutional and implementation arrangements ................................................................ 15 C . Monitoring and evaluation of outcomes/results ................................................................ 16 D. Sustainability .................................................................................................................... -17 E. Critical risks and possible controversial aspects ............................................................... 18 F. Grant conditions and covenants ........................................................................................ -20 IV. APPRAISAL SUMMARY .................................................................................................. 21 A . Economic and financial analyses. ...................................................................................... 21 B. Technical ........................................................................................................................... 22 C . Governance ........................................................................................................................ 23 D. Fiduciary ............................................................................................................................ 23 E. Social ................................................................................................................................. 24 F. Environment ...................................................................................................................... 25 G. Safeguard policies.............................................................................................................. 26 H. Policy Exceptions and Readiness ...................................................................................... 26 Annex 1: Country and Sector or Program Background.......................................................... 27 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies and Main Interventions in the Area of Community Development and Support for Decentralization .32 V Annex 3: Results Framework and Monitoring ......................................................................... 35 Annex 4: Detailed Project Description ...................................................................................... 43 Annex 5: Project Costs ................................................................................................................ 53 Annex 6: Implementation Arrangements .................................................................................. 55 Annex 7: Financial Management and Disbursement Arrangements ..................................... 60 Annex 8: Procurement Arrangements ....................................................................................... 75 Annex 9: Economic and Financial Analysis of CDD Micro-projects ..................................... 86 Annex 10: Safeguard Policy Issues............................................................................................. 90 Annex 11: Project Preparation and Supervision ...................................................................... 94 Annex 12: Documents in the Project File .................................................................................. 95 Annex 13: Statement of Loans and Credits............................................................................... 96 Annex 14: Country at a Glance .................................................................................................. 97 Annex 15: MAP (IBRD 33415) ..................................................................................................