Turkey - Emergency Flood and Earthquake Recovery Project

Document of The World Bank Report No: 27522 IMPLEMENTATION COMPLETION REPORT (PPFB-P3540 SCL-43880) ON A LOAN IN THE AMOUNT OF US$191.0 MILLION TO THE REPUBLIC OF TURKEY FOR AN EMERGENCY FLOOD AND EARTHQUAKE RECOVERY PROJECT February 23, 2004 Infrastructure Sector Turkey Country Unit Europe and Central Asia Region  CURRENCY EQUIVALENTS (Exchange Rate Effective September 30, 2003) Currency Unit = Turkish Lira 1369863.01 TL = US$ 1.00 US$ 1.00 = 0.00000073 TL FISCAL YEAR January I -December 31 ABBREVIATIONS AND ACRONYMS AGM Afforestation and Erosion Center AMU Adana Management Unit AWOS Automated Weather Observation Stations CAS Country Assistance Strategy DDY General Directorate of Railways DMI State Meteorological Institute DSI State Hydraulic Works EIE General Electorate for Electrical Power GD General Directorate GDCD General Directorate of Civil Defense GDDA General Directorate of Disaster Affairs GDAEC General Directorate of Afforestation and Erosion Control GDF General Directorate of Forestry GDI General Directorate of Insurance GDRS General Directorate of Rural Services GDTRI General Directorate of Technical Research and Implementation GIS Geographical Information System GOT Government of Turkey HDA Housing Development Administration HPC High Performance Computer IBRD International Bank for Reconstruction and Development KGM General Directorate of State Highways MARA Ministry of Agriculture and Rural Affairs MEER Marmara Emergency Earthquake Reconstruction Project MPWS Ministry of Public Works and Settlement PIU Project Implementation Unit PSR Project Status Report PM Prime Minister TCIP Turkish Catastrophic Insurance Pool TEFER Turkey Emergency Flood and Earthquake Recovery Project WBSR Western Black Sea Region Vice President: Shiego Katsu Country Director Andrew Vorkink Sector Manager Sumter Lee Travers Task Team Leader/Task Manager: Christoph Pusch  TURKEY Emergency Flood and Earthquake Recovery Project CONTENTS Page No. 1. Project Data 1 2. Principal Performance Ratings 1 3. Assessment of Development Objective and Design, and of Quality at Entry 3 4. Achievement of Objective and Outputs 8 5. Major Factors Affecting Implementation and Outcome 12 6. Sustainability 13 7. Bank and Borrower Performance 13 8. Lessons Learned 16 9. Partner Comments 16 10. Additional Information 17 Annex 1. Key Performance Indicators/Log Frame Matrix 18 Annex 2. Project Costs and Financing 20 Annex 3. Economic Costs and Benefits 22 Annex 4. Bank Inputs 23 Annex 5. Ratings for Achievement of Objectives/Outputs of Components 25 Annex 6. Ratings of Bank and Borrower Performance 26 Annex 7. List of Supporting Documents 27 Annex 8. Borrower's Evaluation Report 28  Project ID: P058877 Project Name: EMGY FLOOD RECOVERY Team Leader: Christoph Pusch TL Unit: ECSSD ICR Type: Core ICR Report Date: March 22, 2004 1. Project Data Name: EMGY FLOOD RECOVERY L/C/TF Number: PPFB-P3540; SCL-43880 Country/Department: TURKEY Region: Europe and Central Asia Region Sector/subsector: Housing construction (43%); General water, sanitation and flood protection sector (29%); General public administration sector (16%); Irrigation and drainage (6%); Roads and highways (6%) Theme: Natural disaster management (P); Rural services and infrastructure (P); Other urban development (P); Water resource management (P) KEY DATES Original Revised/Actual PCD: 08/05/1998 Effective: 10/13/1998 Appraisal: 09/14/1998 MTR: Approval: 09/10/1998 Closing: 06/30/2002 09/30/2003 Borrower/Implementing Agency: REPUBLIC OF TURKEY/TREASURY & HOUSING DEVELOPMENT AGENCY (HDA) Other Partners: STAFF Current At Appraisal Vice President: Shigeo Katsu Johannes F. Linn Country Director: Andrew N. Vorkink Ajay Chhibber Sector Manager: Sumter Lee Travers Ricardo A. Halperin Team Leader at ICR: Christoph Pusch ICR Primary Author: Christoph Pusch; Sati Achath; Eric Peterson 2. Principal Performance Ratings (HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=Highly Unlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible) Outcome: S Sustainability: L Institutional Development Impact: M Bank Performance: S Borrower Performance: S QAG (if available) ICR Quality at Entry: S Project at Risk at Any Time: No  3. Assessment of Development Objective and Design, and of Quality at Entry 3.1 Original Objective: On May 21, 1998, Turkey's Western Black Sea Region (WBSR) was affected by a flood estimated at a recurrence interval of 200 to years or greater (depending on location), accompanied by several hundred landslides lasting for several weeks thereafter. For the region, an area of about 37,000 square kilometers with a population of 2.2 million, this constituted the worst flooding of the last century, with some 151 rivers over-running their embankments, and 478 settlements left wholly or partially under water. The flood damaged private houses, public buildings (including schools, hospitals and housing), rural and urban infrastructure, telecommunication and energy transmission systems and destroyed crops and livestock. Total damage was estimated at about $500 million. In response to a Government request for assistance, the Bank began preparation of an emergency flood project. During project preparation, on June 27, 1998, a major earthquake struck southern Turkey. Around 150 people died in Adana Province and over 1,000 people were injured. Based on the information prepared by numerous official investigation teams within three weeks of the event, 74,303 housing units suffered collapse or damage, with total damage estimated in the range of US$ 1 billion. As a result, the Bank agreed with the Government of Turkey (GOT) to include emergency earthquake response and recovery assistance under the flood project, in a US$685 million multi-sectoral project, with a loan amount of US$369 million. The objectives of the project were to assist the GOT in: (a) restoring basic infrastructure in municipalities and rural areas affected by the flood by repairing structures and facilities of economic and social importance; (b) providing assistance to restore housing in the earthquake affected Province of Adana; and (c) reducing vulnerability to future floods and earthquakes. The objectives were clearly stated, important to the country, and realistic in scale and scope. They were also timely and appropriate to the needs of Turkey, which is a disaster-prone country. The project was not listed in the Country Assistance Strategy (CAS) as a priority operation for GOT as it responded to a national emergency that occurred after the CAS discussion of September 4, 1997. However, the GOT saw the project as a priority operation to address the flood and the earthquake emergencies, and requiring Bank financial and technical support. The project supported the CAS goal of sustaining private sector growth, especially in the area of increased private sector participation in insuring against disaster risk and corporate liability of the construction industry. Private sector development was also supported through infrastructure development, by engaging local vendors, contractors and technical service providers to implement infrastructure restoration. The project also supported the CAS goals for environmental and social sustainability of reforms by repairing environmental infrastructure damages from the flood and the earthquake, restoring basic infrastructure necessary for economic activity. Moreover, the project supported the CAS goal of poverty reduction as it benefited the poor who were hit by the disastrous flood and earthquake. While the poverty impact of this project was not directly measurable, it aimed to minimize the adverse effect on living conditions experienced by those affected by the flood and the earthquake. The project was also expected to have a significant positive impact in restoring normal living conditions to a large proportion of the population in rural areas and affected municipalities. The involvement of the Bank brought to the response and recovery program an organizational framework and a clear process for identifying, selecting and implementing priority investments for municipal/rural infrastructure and flood management. Through the emergency project, the Bank could provide critical funding when it was most needed. By supporting expanded use of liability and house owner's insurance, the - 2 -  Bank was able to contribute to the development of a GOT strategy to raise construction standards and to provide long term sustainable financing for future housing reconstruction. The project took into account the following lessons learned from previous Bank-assisted projects: Infrastructure. Reconstruction of damaged infrastructure after a disaster is imperative but insufficient by itself, and measures are needed to reduce the hazards of similar future disasters and to safeguard people at risk. A second lesson was that while quick response to disaster is important, it is equally important to identify underlying problems in the policy and institutional environments, and determine how to resolve them in ways that result in long-term sustainable solutions to managing the risks of natural disasters. Housing. A review of past emergency loan projects ( Columbia Popayan, Mexico Earthquake, Jamaica Hurricane Emergency Reconstruction, El Salvador Earthquake) revealed (a) that a speedy response is critical; and (b) that cost recovery will be difficult to achieve. The project envisioned the following benefits: