Djibouti - Urban Development Project

Document of > g The World Bank >;Si'P FOR OFFCICAL USE ONLY Report No. P-3789-DJI REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEV ELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED IDA CREDIT FOR SDR 4.9 MILLION (US$5.0 MILLION EQUIVALENT) TO THE R:EPUBLIC OF DJIBOUTI FOR AN URBAN DEVELOPMENT PROJECT August 22, 1984 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.  CURRENCY EQUIVALENTS Currency Unit FD US$1.00 - FD 177.7 FD 1,000 = US$5.6 FD 1,000,000 = US$5,627 WEIGHTS AND MEASURES 1 cm - centimeter = 0.39 inches 1 m - meter = 3.28 feet I m3 - cubic meter 264 US gallons 1 km - kilometer = 0.62 miles 1 km2- square kilometer = 0.39 square miles GLOSSARY OF ABBREVIATIONS AND ACRONYMS BAD - Banque Africaine de Developpement (African Development Bank) CCCE - Caisse Centrale de Cooperation Economique CDD - Caisse de Developpement de Djibouti (Djibouti Development Bank) CFPA - Centre de Formation Professionnelle Administrative DD - District of Djibouti DEB - Djibouti Electricity Board DUDP - Djibouti Urban Development Project DUL - Direction de l'Urbanisme et du Logement (Urban Planning and Housing Department at MPWUH) LO - Land Office MPWUH - Ministry of Public Works, Urbarn Planning and Housing PMU - Project Management Unit SID - Socift4 Immobiliere de Djibouti (Djibouti Housing Agency) WDD - Water Department of Djibouti FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY DJIBOUTI Urban Development Project Credit and Project Summary Borrower: Republic of Djibouti Beneficiaries: Ministry of Public Works, Urban Planning and Housing, Ministry of Interior, Djibouti Development Bank (CDD), and Djibouti Housing Agency (SID). Amount: SDR 4.9 million (US$5.0 million equivalent) Terms: Standard IDA terms Relending Terms: Funds for on-site infrastructure at Salines Ouest would be onlent to SID at 8 percent per annum for a period of five years with three years grace; the funds for housing credit would be onlent to CDD at 6 percent per annum for a period of 12 years with one year grace. CDD would make loans for housing improvement and new construction to final beneficiaries at 8 percent per annum for 12 years with one year grace. Cofinancing: USAID with a grant of US$5.5 million. CCCE with a loan of US$1.0 million. Project Description: Objectives: The objectives of the project are (i) to improve the living conditions of the urban poor in the city of Djibouti (especially the residents of Balbala and the Old Wards); and (ii) to strengthen the absorptive capacity of the key agencies involved in the urban sector by providing them with staff training, equipment, and a clearer and more appropriate framework for the management of urban investments, and introducing more rigor in their cost recovery practices. Components (a) Old Wards. Upgrading and drainage works in the Old Wards to alleviate stormwater damage and provide protection from flooding of all low lying areas. Roads, water distribution, fire hydrants and refuse collection would also be included. (b) Elalbala. Upgrading of a squatter settlement; this would include provision of roads, public lighting, refuse collection and the construction of a market. 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.  (c) Salines Ouest. A site and service development as a joint venture with the Socigtg Immobiliere de Djibouti (SID) on land owned by them. SID's contribution would include the land and core housing units; the project would finance the cost of the off-site and on-site infrastructure. (d) Institutional Support. Technical support including staffing, training and equipment to the Land Office, the District of Djibouti, SID, Caisse de Dgveloppement de Djibouti (CDD), and a small Project Management Unit (PMU). (e) Housing Credit. Housing credit to improve existing homes and the construction of new housing units in the target areas. Benefits: The project objectives would be achieved through the improved efficiency of urban institutions, the servicing of urban land and the provision of housing credit. The project would improve the living conditions in the Old Wards (161 ha., 10,390 households) and Balbala (105 ha., 2,500 plots) and would provide 176 serviced plots at Salines Ouest. Risks: The main risks faced by the project are those derived from weaknesses in the execution capacity of the implementation agencies which may lead to delays in project implementation, and cost recovery. Specific measures, including a high degree of institutional support which is considered of high priority in Djibouti, have been included as part of the project to limit these risks. Project Costs: