Documentof The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No. 17260 IMPLEMENTATION COMPLETION REPORT Public Disclosure Authorized REPUBLIC OF NIGER PUBLIC WORKS AND EMPLOYMENT PROJECT CREDIT 2209-NIR December 23, 1997 Public Disclosure Authorized Water and Urban Sector Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwisebe disclosed without World Bank authorization. CURRENCYEQUIVALENTS Currencyunit = CFA Franc(CFAF) 1990: US dollar = 285 CFAF 1991: US dollar = 283 CFAF 1992: US dollar = 265 CFAF 1993: US dollar = 280 CFAF 1994: US dollar = 555 CFAF 1995: US dollar = 520 CFAF 1996: US dollar = 520 CFAF 1997: US dollar = 540 CFAF WEIGHTSAND MEASURES Metric System FISCALYEAR January I - December 31 ACRONYMSAND ABBREVIATIONS AFN Women'sAssociation of Niger AGETIP Agenced'Execution des Travauxd'Interet PublicContre le Sous-Emploi [PublicWorks and EmploymentAgency] AVCN Associationof Cities and Communes[i.e. Municipalities]of Niger. CFD CaisseFran9aise de Developpement CIDA Canada InternationalDevelopment Agency CNMP CommissionNationale des MarchesPublics [National Public Procurement Commission] EDF EuropeanDevelopment Fund EElC EuropeanEconomic Community FSD Fonds Socialde Developpement(France) IDA InternationalDevelopment Association 1(1W Kreditanstaltfbir Wiederaufbau (Germany) N][GETIP AgenceNigerienne de Travauxd'Interet Publicpour l'Emploi [Niger's PublicWorks and EmploymentAgency] O]PEC Organizationof PetroleumExporting Countries PACSA Programto Alleviatethe Social Costsof Adjustment(Niger) PPF ProjectPreparation Fund SAR StaffAppraisal Report SPEIN Businessand IndustryEmployers' Association of Niger SYNAPEMEN NationalAssociation of Smalland Medium-SizedEnterprises of Niger TAIMAKO Mutual GuaranteeCompany TIPE Travauxd'Inter6t Publicpour l'Emploi [Employment-creat'igPublic Works] UNC NationalUnion of Cooperatives USTN Federationof Labor Unionsof Niger Vice-President : Mr. Jean-LouisSarbib Director : Mr. Theodore Ahlers SectoralManager : Mrs. Letitia Obeng Task TeamLeader : Mr. ChristianDiou TABLE OF CONTENTS FOR OFFICIAL USE ONLY PageNo PREFACE EVALUATIONSUMMARY PARTI: PROJECTIMPLEMENTATION ASSESSMENT A. Introduction 1 B. Project Objectives 2 C. Achievementof Objectives 3 D. Major FactorsAffecting the Project 5 E. Sustainabilityof the Project 7 F. Bank Perfonnance 8 G. BorrowerPerformance 8 H. Assessmentof Project Outcome 10 I. Future Operations 10 J. Key Lessons Learned 10 PARTII: STATISTICALANNEXES Table 1: Summaryof Assessments Table 2: RelatedBank Loans and Creditsin the Sector Table 3: Project Timetable Table 4: CreditDisbursements: Cumulative Estimated and Actual Table 5: Key Indicatorsfor ProjectImplementation Table 6: Key Indicatorsfor Project Operation Table 7: StudiesIncluded in Project Table 8A: Project Costs Table 8B: Credit Allocationby Category Table 9: EconomicCosts and Benefits Table 10: Status of Legal Covenants Table 11: Compliancewith OperationalManual Statements Table 12: Bank Resources:Staff Inputs Table 13: Bank Resources:Missions ANNEXES A. ClosingMission Aide-Memoire B. Borrower'sContribution C. Map IBRD 16779R This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization. T IMPLEMENTATIONCOMPLETION REPORT REPUBLICOF NIGER PUBLICWORKS AND EMPLOYMENTPROJECT CREDIT2209-NIR PREFACE This is the Implementation Completion Report (ICR) for the Public Works and EmploymentProject in Niger, for which Credit 2209-NIR, in the amount of SDR 13.9 million (US$ 20.0 million) was approvedon February 19, 1991, signed on April 5, 1991, and declared effectiveon December9, 1991. A supplementaryCredit, 2209-1-NIR, in the amount of SDR 6.9 million (US$ 10 million), was approvedon November 10, 1994, signed on December23, 1994 and declaredeffective on September18, 1995. The two credits, 2209-0-NIR and 2209-1-NIR, were closed on June 30, 1997. The originalclosing date was December31, 1994. At that time, the operationsfinanced by the initial Creditwere almost fully completed.The closing date was postponedto allow implementationof the supplementaryCredit. The last disbursementtook place on September26, 1997. This Implementation Completion Report was prepared by Christian Diou, Senior Municipal Engineer, AFTU2, task manager for the project, with the assistance of G6rard Tenaille, Consultant,and was reviewed by Theodore Ahlers, Country Director for Niger and Jerome Chevallier,Sector Manager, AFTS3. Preparationof the report startedduring a missionto Niger in April 1997, of which the aide-memoireis attached. The ImplementationCompletion Report is based on project files, correspondence,the Staff Appraisal Report and the Credit Agreement. The Borrower contributedto the preparationof the ImplementationCompletion Report by preparingits own project implementationreport in April 1997, updated in November 1997,and throughits commentson the draft ICR. I m IMPLEMENTATION COMPLETION REPORT NIGER PUBLIC WORKS AND EMPLOYMENT PROJECT CREDIT 2209-NIR EVALUATIONSUMMARY Introduction 1. This CompletionReport evaluatesthe Public Works and EmploymentProject in Niger, which was implementedby the ExecutingAgency NIGETIP, an institutioncreated on the model of the AGETIPagency in Senegal. Project Objectives 2. The major objectives of the project were the following:(a) create, at least temporarily, new employment in urban areas using the private sector, and thereby stimulating small local private contractors and consultingfirms; (b) improvethe individual skills of workers and the competitivenessof the firms involved; (c) demonstratethe feasibilityof labor-intensiveprojects and to test proceduresthat will allow the public sectorto commissioneconomically and socially useful projects;and (d) reviewexisting public works programsand recast them with the intent of speedingup their implementationand enhancingtheir overallperformance. Achievementof Objectives 3. The project attained its objectives, as regards the creation of jobs, developmentof the privatesector, and physicalobjectives: (a) Job creation. The objectiveswere exceeded. More than 900 works contracts have been awardedto date, for a total value of CFAF 21 billion. These contractshave led to the creationof 46,760jobs lasting for an averageof 53 days and total wage spendingof CFAF 5.28 billion. The value of wages represents25 per cent of the overallvalue of the works, or 35 per cent when one takes into account of the wages paid to the consulting firms and the personnel costs of the Nigetip ExecutingAgency. (b) Enhancingthe individualskills of workers and the competitivenessoffirms. Here, the objectiveswere attained.A total of 856 Niger contractorswere prequalifiedby Nigetip (a number that was recently reducedto 428), and 157 of these firms obtained an average of 5.7 contracts. 84 consultingfirms were prequalified(this number has been reducedto 57), and 45 of them have worked with Nigetip under a total of 442 consulting contracts and 544 works supervision contracts. Without the Nigetip project, it is likely that a major portion of professionals would have had to go abroad to seek employment.The activities undertakenhave provided them with -11-. significantopportunities since 1995,primarily through the training and technical assistance that has been provided to contracting finns awarded,work contracts under the project, to the consultingfirms and to the beneficiaries(in particularthe municipalgovernments). (c) Demonstratingthe feasibility of labor-intensivesub-projects and procedures. The results are globally positive. Regarding the labor-intensivetechniques, the field results obtained in Niger, as in neighboringcountries, were highly satisfactory. The program which was aimed at encouragingcommunity participation in maintainingurban infrastructurefinanced by the project was partially implemented,and the target beneficiariesof the sub-projectswere sensitized. The preparatorystudy for setting up a mutual guaranteecompany was successful,and resulted in the further developmentof "Taimako". On the other hand, the study on bottlenecks in public procurementand tenderingdid not produceany new regulatorymeasures. Economicanalysis 4. The economic analysis conducted during the project appraisal found internal rates of return (IRR) of 26 per cent (clearingsand from roads), and 51 per cent (pavementrehabilitation). An ex post analysis was performed in 1997, on the basis of which IRRs were calculated for various kinds of sub-projects,revenue-generating or not: building rehabilitation(27 per cent), road paving (21 per cent), drainage (28 per cent), constructionof sports facilities (20 per cent), bus depots (45 per cent), slaughterhouses(39 per cent), etc. These data confirm the economic soundnessof the urban works programmanaged by the ExecutingAgency. Major factorsaffecting the project 5. The only major event that affected the project was the devaluationof the CFA franc on January 12, 1994. The Bank and the Governmentagreed at that time on the need to set up a supplementaryCredit of US$ 10 million in order to expand employmentopportunities, and in particular to increase the volume of works under the existing project. There were difficulties with implementationof counterpartfunds at the outset of the project. Sustainabilityof the project 6. The project is probably sustainable. This must be looked at from two angles: