Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 3474 1-JM PROJECT APPRAISAL DOCUMENT FOR A PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF US$29.3 MILLION TO JAMAICA FOR AN INNER CITY BASIC SERVICES FOR THE POOR PROJECT March 3,2006 Public Disclosure Authorized Finance, Private Sector and Infrastructure Caribbean Country Management Unit Latin America and the Caribbean Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the perfonnance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective February 28,2006) Currency Unit = Jamaica Dollars (J$) 65.12J$ = US$1 FISCAL, YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy CBA Cost-Benefit Analysis CBC Community-Based Contracting CBO Community-Based Organization CDB Caribbean Development Bank CDC Community Development Committees CDD Community-Driven Development CDO Community Development Officer CEM Country Economic Memorandum CFA Country Financial Accountability Assessment CIDA Canadian International Development Agency CLO Community Liaison Officer CPAR Country Procurement Assessment Report CPTED Crime Prevention Through Environmental Design CSI Community Security Initiative DFID Department for International Development (UK) DIME Development Impact Evaluation EDCo Estate Development Company EIA Environment a1 Impact Assessment EMF Environmental Management Framework EMP Environmental Management Plan EU European Union FAU Finance and Administration Unit FOSIS Fond0 de Solidaridady Inversidn Social (Social Investment and Solidarity Fund) GoJ Government of Jamaica IADB Inter-American Development Bank ICBSP Inner Cities Basic Services for the Poor (Project) IRR Internal Rate ofReturn JBIC Japan Bank for International Cooperation JICA Japan International Cooperation Agency JPS Co. Jamaica Public Services Company JSIF Jamaica Social Investment Fund JSLC Jamaica Survey of Living Conditions KMA Kingston Metropolitan Area LAMP Land Administration and Management Program LARPF Land Acquisition and Resettlement Policy Framework M&E Monitoring and Evaluation MDG Millennium Development Goal MFI Microfinance Institution MIS Management Information System MTSEPF Medium-Term Socio-Economic Policy Framework NCDP National Community Development Project NEPA National Environment and Planning Agency NHDC National Housing Development Corporation NHT National Housing Trust NLA National Land Agency NSWMA National Solid Waste Management Agency NWA National Works Agency NWC National Water Commission PCA Procurement Capacity Assessment PDC Parish Development Committees PIOJ Planning Institute ofJamaica PMI Peace Management Initiative PPI Peace and Prosperity Initiative PRA Participatory Rapid Appraisals REP Rural Electrification Programme SDC Social Development Commission SME Small and Medium Enterprise STATIN Statistical Institute ofJamaica UNDP United Nations Development Programme USAID United Sates Agency for International Development WTP Willingness to Pay Vice President: Pamela Cox Country Director: Caroline D. Anstey Sector Director Makhtar Diop Sector Manager: John Henry Stein Task Team Leader: Abhas K. Jha FOR OFFICIAL USE ONLY 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. JAMAICA Inner City Basic Services for the Poor Project CONTENTS Page A . STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 1. Country and sector issues.................................................................................................... 1 2 . Rationale for Bank involvement ......................................................................................... 3 3 . Use of Borrower Systems ................................................................................................... 4 4 . Higher level objectives to which the project contributes .................................................... 4 B. PROJECT DESCRIPTION ................................................................................................. 5 1. Lending instrument ............................................................................................................. 5 2 . Project development objective and key indicators.............................................................. 5 3 . Project components ............................................................................................................. 7 4 . Community consultations ................................................................................................. 17 5 . Lessons learned and reflected in the project design .......................................................... 17 6 . Alternatives considered and reasons for rejection ............................................................ 19 C. IMPLEMENTATION ........................................................................................................ 20 1. Partnership arrangements .................................................................................................. 20 2 . Institutional and implementation arrangements ................................................................ 20 3 . Monitoring and evaluation of outcomes/results ................................................................ 22 * .. 4 . Sustainablllty..................................................................................................................... 23 5 . Critical risks and possible controversial aspects ............................................................... 24 6 . Loadcredit conditions and covenants ............................................................................... 25 D. APPRAISAL SUMMARY ................................................................................................. 26 1. Economic and financial analyses ...................................................................................... 26 2 . Technical. .......................................................................................................................... 26 3 . Fiduciary ........................................................................................................................... 27 4 . Social................................................................................................................................. 28 5. Environment ...................................................................................................................... 28 6 . Safeguard policies ............................................................................................................. 28 7 . Policy Exceptions and Readiness ...................................................................................... 30 Annex 1: Country and Sector Background .............................................................................. 31 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 35 Annex 3: Results Framework and Monitoring ........................................................................ 37 Annex 4: Detailed Project Description...................................................................................... 43 Annex 5: Project Costs ............................................................................................................... 61 Annex 6: Implementation Arrangements ................................................................................. 62 Annex 7: Safeguards Policy Issues ............................................................................................ 65 Annex 8: Summary of Environment Management Framework............................................. 71 Annex 9: Summary of Land Acquisition & Resettlement Policy Framework ...................... 74 Annex 10: Financial Management and Disbursement Arrangements ................................... 79 Annex 11: Procurement Arrangements .................................................................................... 86 Annex 12: Economic and Financial Analysis ........................................................................... 91 Annex 13: Public Safety Diagnosis and Component Strategy .............................................. 102 Annex 14: Community Consultations ..................................................................................... 112 Annex 15: IS014000 Certification .Environmental Management System ........................ 118 Annex 16: Related Donor, Government and Non-Governmental Programs ...................... 122 Annex 17: Documents in Project Files .................................................................................... 124 Annex 18: Project Preparation and Supervision ................................................................... 125 Annex 19: Statement of Loans and Credits ............................................................................ 126 Annex 20: Country at a Glance ............................................................................................... 127 Annex 21: Map IBRD# 34379 .................................................................................................. 129 JAMAICA INNER CITY BASIC SERVICES FOR THE POOR PROJECT PROJECT APPRAISAL DOCUMENT LATIN AMERICA AND CARIBBEAN