Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD1287 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON . PROPOSED GRANTS Public Disclosure Authorized TO THE . VOLTA BASIN AUTHORITY FROM THE COOPERATION IN INTERNATIONAL WATERS IN AFRICA TRUST FUND IN THE AMOUNT OF US$3.5 MILLION AND Public Disclosure Authorized THE GLOBAL ENVIRONMENT FACILITY IN THE AMOUNT OF US$7.2 MILLION FOR A VOLTA RIVER BASIN STRATEGIC ACTION PROGRAMME IMPLEMENTATION PROJECT APRIL 30, 2015 Global Water Practice (GWADR) Africa Region Public Disclosure Authorized This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank's policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective, March 31, 2015) Currency Unit = FCFA 610.762 FCFA = US$ 1 US$ 1 = SDR 0.72491 FISCAL YEAR January - December 31 ABBREVIATIONS AND ACRONYMS AFD Agence Française de Développement (French Agency for Development) BCM Billion Cubic Meters BMCC Basin Management Coordinating Committee CAS Country Assistance Strategy CGIAR Consultative Group for International Agriculture Research CIWA Cooperation in International Waters in Africa COM Council of Ministers in Charge of Water Resources CPS Country Partnership Strategy CQ Consultant Qualification DAF Direction of Administration and Finances EACC Economics of Adaptation to Climate Change ECOWAS Economic Community of West African States EQO Environmental Quality Objective ERR Economic Rate of Return ESIA Environmental and Social Impacts Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan EU European Union FAO Food and Agriculture Organization FB Fixed Budget FM Financial Management GDP Gross Domestic Product GEF Global Environment Facility GFDRR Global Facility for Disaster Reduction and Recovery GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GRS Grievance Redress Service GWh Gigawatt hours HEP Hydroelectric Power IBRD International Bank for Reconstruction and Development IC Individual Consultant ICB International Competitive Bidding ICT Information and Communications Technology IDA International Development Association IFAC International Federation of Accountant IFR Interim Financial Report IGA Income Generating Activities IPMP Integrated Pest Management Plan IRR Internal Rate of Return IUCN International Union for the Conservation of Nature IW International Waters IWRM Integrated Water Resources Management LCBC Lake Chad Basin Commission LCS Least Cost Selection MDGs Millennium Development Goals MoU Memorandum of Understanding MW Megawatts M&E Monitoring and Evaluation NBA Niger Basin Authority NCB National Competitive Bidding NEPAD New Partnership for African Development NGO Non-Government Organizations NPV Net Present Value OMVS Organisation pour la Mise en Valeur du Fleuve Sénégal (Senegal River Development Authority) OP/BP Operational Policies/Bank Procedures O&M Operation and Maintenance PCU Project Coordinating Unit PDO Project Development Objective PFS Project Financial Statements PIM Project Implementation Manual PSC Project Steering Committee pTDA Preliminary Transboundary Diagnostic Analysis QCBS Quality and Cost Based Selection RBO River Basin Organization RF Results Framework RIAS Regional Integration Assistance Strategy RPF Resettlement Policy Framework SAP Strategic Action Programme SOE Statement of Expenditure SIDA Swedish International Development Cooperation Agency SONABEL http://www.sonabel.bf SORT Systemic Operations Risk-Rating Tool SSS Single Source Selection TDA Transboundary Diagnostic Analysis TEV Total Economic Value TOR Terms of Reference UNDP United Nations Development Programme UNEP United Nations Environment Programme UNESCO United Nations Educational, Scientific and Cultural Organization VBA Volta Basin Authority VBTC Volta Basin Technical Committee VRA Volta River Authority WMO World Meteorological Organization WRCC Water Resources Coordination Center Regional Vice President: Makhtar Diop Country Director: Colin Bruce Senior Global Practice Director: Junaid Kamal Ahmad Practice Manager: Alexander Bakalian Task Team Leader: Shelley McMillan AFRICA Volta River Basin Strategic Action Programme Implementation Project (P149969) TABLE OF CONTENTS Page I. STRATEGIC CONTEXT .................................................................................................1 A. Regional and Country Context ....................................................................................... 1 B. Sectoral and Institutional Context .................................................................................. 2 C. Higher Level Objectives to which the Project Contributes .......................................... 11 II. PROJECT DEVELOPMENT OBJECTIVES ..............................................................16 A. Project Development Objective (PDO) ...................................................................... 16 B. Project Beneficiaries .................................................................................................... 16 C. PDO Level Results Indicators ...................................................................................... 16 III. PROJECT DESCRIPTION ............................................................................................16 A. Project Components .................................................................................................... 16 B. Project Financing ........................................................................................................ 19 C. Lessons Learned Reflected in the Project Design....................................................... 19 IV. IMPLEMENTATION .....................................................................................................21 A. Institutional and Implementation Arrangements ........................................................ 21 B. Results Monitoring and Evaluation ............................................................................ 22 C. Sustainability............................................................................................................... 22 V. KEY RISKS AND MITIGATION MEASURES ..........................................................23 VI. APPRAISAL SUMMARY ..............................................................................................23 A. Economic and Financial Analyses .............................................................................. 23 B. Technical ..................................................................................................................... 26 C. Financial management ................................................................................................ 27 D. Procurement ................................................................................................................ 27 E. Environment and Social (including Safeguards) ........................................................ 28 F. Grievance Redress ...................................................................................................... 29 Annex 1: Results Framework and Monitoring .........................................................................30 Annex 2: Detailed Project Description .......................................................................................33 Annex 3: Implementation Arrangements ..................................................................................51 Annex 4: Implementation Support Plan ....................................................................................63 Annex 5: Systemic Operations Risk-Rating Tool (SORT) .......................................................64 Annex 6: Incremental and Additional Cost Analysis ...............................................................65 Annex 7: Economic and Financial Analysis ..............................................................................75 Annex 8: Map of the Volta River Basin .....................................................................................83 . PAD DATA SHEET Africa Volta River Basin Strategic Action Programme Implementation (P149969) PROJECT APPRAISAL DOCUMENT . AFRICA GWADR Report No.: PAD1287 . Basic Information Project ID EA Category Team Leader P149969 B - Partial Assessment Shelley Mcmillan Lending Instrument Fragile and/or Capacity Constraints [ ] Investment Project Financing Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date 21-May-2015 31-Aug-2019 Expected Effectiveness Date Expected Closing Date 15-Sep-2015 31-Aug-2019 Joint IFC GEF Focal Area No International waters Practice Senior Global Practice Country Director Regional Vice President Manager/Manager Director Alexander E. Bakalian Junaid Kamal Ahmad Colin Bruce Makhtar Diop . Recipient: Volta Basin Authority Responsible Agency: Volta Basin Authority (VBA) Contact: Dr. Charles Biney Title: Executive Director (acting) Telephone No.: 22625376067 Email: [email protected] . Project Financing Data(in USD Million) [ ] Loan [ ] IDA Grant [ ] Guarantee [ ] Credit [ X ] Grant [ ] Other Total Project Cost: 10.94 Total Bank Financing: 10.70 Financing Gap: 0.00 . Financing Source Amount Recipient 0.24 Global Environment Facility (GEF) 7.20 Cooperation in International Waters