Burundi - Urban Development Project

Document of FILE COPY The World Bank FOR OFFICIAL USE ONLY Report No. P-2839-BU REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO THE REPUBLIC OF BURUNDI FOR AN URBAN DEVELOPMENT PROJECT June 3, 1980 This document kas a restricted distributlon and may be used by recipients only in the performance of | their official dties. Its contents may not otherwise be disclosed without World Bank authorbation.  CURRENCY EQUIVALENTS Currency Unit - Burundi Franc (FBu) US$1.00 - FBu 89 FBu 1 - US$0.0112 ABBREVIATIONS Regideso - National Water and Electricity Authority UNDP - United Nations Development Programme UNIDO - United Nations Industrial Development Organization FISCAL YEAR January 1 - December 31  BURUNDI FOR OFFICIAL USE ONLY URBAN DEVELOPMENT PROJECT CREDIT AND PROJECT SUMMARY Borrower: Republic of Burundi Amount: US$15.0 million Terms: Standard IDA terms Beneficiary and Relending Terms: A portion of the proceeds of the credit would be onlent to the Municipality of Bujumbura: about US$2.0 million for civil works (to be repaid at 6% interest rate per annum over 18 years including three years of grace) and about US$1.2 million for equipment, vehicles and materials (to be repaid at 8% interest rate per annum over seven years including two years of grace). Prolect Description: (i) Purpose: To assist the Government in improving the living conditions of the urban poor by (a) correcting the most urgent deficiencies in existing neighborhoods of the capital city (Bujumbura) and (b) establishing the basis for more efficient future urban growth. (ii) Components: (a) provision of basic infrastructure to seven neighborhoods benefiting about 16,700 households, preparation of about 780 sites and services plots, and loans for house construction and improvement; (b) pro- motion of artisans through provision of training and credit; (c) construction of three primary schools and renovation of eleven existing ones; (d) improvement of the Bujumbura Municipality's capacity to maintain streets and buildings, collect solid waste and recover costs; and (e) project management and technical assist- ance. (iii) Benefits: Improved living conditions for 118,000 per- sons, improved quality of housing, and increased incomes for artisans. The project would provide a replicable model for continuation of low-cost housing programs. It would also strengthen institutions in the housing sector. (iv) Risks: Specific risks concern the implementation of the proposed institutional arrangements and the field performance of cost recovery mechanisms. These risks are acceptable given the attention within the project to management, institutional reforms, and the afford- ability of design standards. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Estimated Costs (net of taxes and import duties): Local Foreign Total ------ (US$'Million) ---- Neighborhood upgrading 0.97 1.53 2.50 Serviced plots 0.26 0.57 0.83 House Construction 2.18 0.14 2.32 Promotion of artisans 0.46 0.19 0.65 Community facilities 0.55 0.90 1.45 Municipal Services 0.20 1.40 1.60 Project management, tech- nical assistance, studies, design and supervision 1.06 1.97 3.03 Total 5.68 6.70 12.38 Contingency allowances Physical (6%) 0.23 0.51 0.74 Price (27%) 1.95 1.60 3.55 Total Project Cost 7.86 8.81 16.67 Financing Plan: Local Foreign Total