Document of The World Bank Report No: 21138-ER Public Disclosure Authorized PROJECT APPRAISAL DOCUMENT ON A Public Disclosure Authorized PROPOSED LEARNING AND INNOVATION LOAN IN THE AMOUNT OF SDR 4.0 MILLION (US$5.0 MILLION EQUIVALENT) TO THE STATE OF ERITREA FOR A CULTURAL ASSETS REHABILITATION PROJECT Public Disclosure Authorized May 29, 2001 Environment and Social Development Unit Africa Regional Office Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective November 14, 2000) Currency Unit = Nakfa I Nakfa = US$0.10 US$1.00 = Nakfa 9.775 FISCAL YEAR July 1 -- June 30 ABBREVIATIONS AND ACRONYMS CARP Cultural Assets RehabilitationProject DCA Development Credit Agreement FMS Financial Management Specialist GOE Govenmmentof Eritrea GPN General ProcurementNotice IA ImplementingAgency IAPSO Inter-AgencyProcurement Services Organization ICCROM Center for the Study of the Preservation and Restoration of Cultural Heritage ICR ImplementationCompletion Report IDA Intemational Development Association IDF InstitutionalDevelopment Fund LACI Loan AdministrationChange Initiative LIL Learning and Innovation Loan NME National Museums of Eritrea OMR Output Monitoring Report PEC ProcurementEvaluation Committee PFDJ People's Front for Democracyand Justice PIP Project ImplementationPlan PMR Project ManagementReport RDC Research and DocumentationCenter SA SpecialAccount SBD Standard Bidding Documents SOE Statement of Expenses SPN Specific ProcurementNotice TA Technical Assistance TOR Terms of Reference TTL Task Team Leader UNDB United Nations DevelopmentBusiness UNESCO United Nations Educational, Scientific and Cultural Organization Vice President: Callisto E. Madavo Country Director: Oey Astra Meesook Sector Manager: Roger C. Sullivan Task Team Leader: Peter A. Dewees ERITREA CULTURAL ASSETS REHABILITATION PROJECT CONTENTS A. ProjectDevelopment Objective Page 1. Project developmentobjective 2 2. Key performanceindicators 2 B. StrategicContext 1. Sector-relatedCountry AssistanceStrategy (CAS) goal supportedby the project 3 2. Main sector issues and Governmentstrategy 4 3. Learning and developmentissues to be addressedby the project 6 4. Learningand innovationexpectations 6 C. Project DescriptionSummary 1. Projectcomponents 6 2. Institutionaland implementationarrangements 8 3. Monitoringand evaluationarrangements 8 D. ProjectRationale ([his sectionis not to be completed in a LIL PAD) E. SummaryProject Analysis 1. Economic 9 2. Financial 9 3. Technical 9 4. Institutional 10 5. Environmental 12 6. Social 13 7. SafeguardPolicies 14 F. Sustainabilityand Risks 1. Sustainability 14 2. Critical risks 15 3. Possible controversialaspects 16 G. Main Credit Conditions 1. EffectivenessCondition 16 2. Other 16 H. Readinessfor Implementation 17 1. Compliancewith Bank Policies 17 Annexes Annex 1: ProjectDesign Summaiy 18 Annex 2: DetailedProject Description 25 Annex3: Estimated ProjectCosts 39 Annex4: Cost-EffectivenessAnalysis Summary 40 Annex 5: Financial Summary 41 Annex 6: Procurementand DisbursementArrangements 42 Annex 7: ProjectProcessing Schedule 48 Annex 8: Documentsin the ProjectFile 50 Annex 9: Statementof Loans and Credits 51 Annex 10: Countryat a Glance 53 MAP(S) IBRD 31462 ERITREA Cultural Assets Rehabilitation Project Project Appraisal Document Africa Regional Office AFTES Date: May 29, 2001 Team Leader: Peter A. Dewees Country Manager/Director: Oey Astra Meesook Sector Manager: Roger C. Sullivan Project ID: P058724 Sector(s): MY - Non-Sector Specific Lending Instrument: Learning and Innovation Loan (LIL) Theme(s): Social Development Poverty Targeted Intervention: N Program FinancingData 1 Loan [X] Credit ] Grant [1 Guarantee [ Other: For Loans/Credits/Others: Amount (US$m): $5.00 ProposedTerms (IDA): Standard Credit Financing Plan (US$m): Source:,: Local Foreign Total: BORROWER 0.30 0.00 0.30 IDA 2.40 2.60 5.00 OTHER FOREIGN SOURCES (UNIDENTIFIED) 0.00 0.10 0.10 Total: 2.70 2.70 5.40 Borrower: STATE OF ERITREA Responsibleagency: Cultural Heritage Secretariat, Ministry of Finance Address: P.O. Box 6513, Asmara, Eritrea Contact Person: Naigzy Gebremedhin Tel: 291-1-122059 Fax: 291-1-123691 Email: [email protected] Other Agency(ies): National Museums of Eritrea Address: P.O. Box 5284, Asmara, Eritrea Contact Person: Dr. Yoseph Libsikel Tel: 291-1-119902 Fax: 291-1-126368 Email: [email protected] Cultural Affairs Bureau, Ministry of Education Address: P.O. Box 251, Asmara, Eritrea Contact Person: Solomon Tsehaye Tel: 291-1-118980 Fax: 291-1-121980 Email: Estimated disbursements( Bank FYIUS$m): -Y - -- i 2003-2002- t 2004- Annual 1.70 1.80 1.50 Cumulative 1.70 3.50 5.00 Project implementationperiod: 3 years Expectedeffectiveness date: 08/01/2001 Expectedclosing date: 01/31/2005 >S PAD FomR. M20 A. Project DevelopmentObjective 1. Projectdevelopment objective: (see Annex ]) As the Governmentof Eritrea begins the process of rebuildingits economyafter the close of the conflict with Ethiopia,it is seeking Bank support with a Leaming and InnovationLoan to assist it in testingout and developingthe meansfor more fully integratingthe conservationand managementof culturalassets into local and national economicdevelopment. The project is coincidentwith progresswhich is being made in launchingpost-conflict activities which are orientedtoward economicreconstruction and recovery,and other social and economic programswith poverty reductionobjectives. The decision to process it as a LIL is because of strong capacity building elements,the pilot natureof individualcomponents for which viable technical,financial, and social solutionsneed to be tested and developed,and the need for experimentation with different growth-orientedpartnership arrangements with respectto the involvementof the private sector,government, communities, local institutions,and groups of artisans, craftsmenand builders. The project would provide support for testing severalapproaches, on a pilot basis, for integratingpoverty reductionand growthobjectives with the conservationand rehabilitationof the country'scultural assets, focusing in part on the unique architecturalheritage of Asmaraand other urban centers, as well as on selectedhistoric sites, and on its rich written, oral, and artistic traditions. The project would work closely with communitiesin historic areas, and in urban sites,to revitalizethe economic and cultural life of communitiesthrough conservation. The project would also strengthenthe managementof public records both to contributeto the developmentof a historiographyof Eritrea while improvingthe efficiencyof the public sector. By providingsupport for building skills development,and for small- and medium-size building enterprises,the project would also contributeto the revitalizationof economicactivity in this reconstructionperiod. It would supportjob creationand skills developmentthrough a modest civil works programs,and would lay important groundworkfor capitalizingon local tourismpotential (which had started to blossom beforethe conflict). 2. Key performance indicators: (see Ainex 1) At the national level,progress in meeting the project'sdevelopment objectives will be assessedby focusing on and disseminatinggood practicesfor cultural asset conservationand managementactivities piloted by the project, and on the effectivenessof the coordinatingmechanism -- the SteeringCommittee on Cultural Heritage -- in catalyzingaction, settingpriorities, and mobilizingresources for accomplishingnational goalswith regard to culturalasset management. The followingindicators would serve as performiance benchmarksfor the proposedLIL. 1. Site Planning and Conservation * Site inventories,plans, and conservationactivities, with a strong community-basedgrowth and developmentorientation, are developedand under implementationat pilot sites. An evaluation mechanismis in place to ensure that the lessonsfrom these pilots are capturedin the design of future interventions.The results from these evaluationsare effectivelydisseminated. * The National Museum is better able to deliver on its mandateof education,research, and exhibition, with trained staff and management,and improvedfacilities. -2- 2. Conservingthe Built Environment * A growth-orientedplanning process for urban architecturalmanagement and conservationis underway, and the capacityto carry out planningis improved. As part of the planningprocess, guidelinesfor architecturalmanagement and conservationare developedand disseminated. * A Conservationfund is under implementation,designed to stimulatethe private sectorand to engage communitiesin urban architecturalconservation, and is assessedfor its effectivenessand sustainability. Results of the assessmentare disseminated. * Capacityfor undertakingbuilding conservation is improvedin the building trades. Low income groups are targetedfor training in specializedbuilding trades related to conservation. * Conservationof priority and targeted sites in Asmaraand Massawa is completed,with a particular emphasis on improvingcommunity access to public servicesand spaces. 3. Supporting Living Cultures . Traditionsof oral literature are strengthened. Programsof training in oral history and oral literature and traditions are in place, and the managementof informationabout oral history and literatureis improved. * Oral historiesof various periods(i.e. pre colonial,Italian, British and Federal,and Ethiopian annexationand armed struggle,1961-1991) are collected,disseminated, and incorporatedinto the educationalcurricula. 4. Documentation and Information Management * The capacity for archives and