Madagascar - Cyclone Rehabilitation Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 10618 PROJECT COMPLETION REPORT DEMOCRATIC REPUBLIC OF MADAGASCAR CYCLONE REHABILITATION PROJECT (CREDIT 1526-0-MAG) AND SUPPLEMENTAL CREDIT (CREDIT 1526-1-MAG) MAY 11, 1992 Infrastructure Operations Division South-Central and Indian Ocean Department Africa Regional Office This document has a restricted distribution and maye be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authoirization.  CURRENCY EOUIVALENTS Cuzrency Unit - Malagasy Franc (FMg) US$1 - FMg 560 (appraisal) US$1 = SDR 0.986 (appraisal) US$1 = FMg 972 (average) US$1 = SDR 0.849 (average) ABBREVIATIONS AND ACRONYMS ASECNA Agence pour la Securit6 de la Navigation A6rienne en Afrique et A Madagascar (Regional Aviation Authority) BFV = Banky Fampandrosoana Ny Varotra (National Commercial Bank) BTM - Bankin' Ny Tanteaha Mpamokatra (Rural Development Bank) CNC = Comit& National de Coordination (Coordination Comittee) FIFABE Agricultural Regional Development Enterprise (Marovay Irrigation) JIRAMA = Jiro Sirano Malagasy (Water and Electricity Public Utility) MTP - Ministry of Public Works OPEC = Organization of Petroleum Exporting Countries SEPT - Soci6t6 d'Exploitation du Port de Toamasina (Port Authority) FISCALY January 1 - December 31  THE W ORLD BANK YFOR OMCIAL USE ONLY Washington, D.C. 20433 U.S.A. Ofice at Difector Gewfl Opwratm Evaluatkin May 11, 1992 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on the Democratic Republic of Madagascar Cyclone Rehabilitation Project (Credit 1526-0-MAG) and Supplemental Credit (Credit 1526-1-MAG) Attached, for information, is a copy of a report entitled "Project Completion Report on the Democratic Republic of Madagascar Cyclone Rehabilitation Project (Credit 1526-0-MAG) and Supplemental Credit (Credit 1526-1-MAG)" prepared by the Africa Regional Office with Part II of the report contributed by the Borrower. No audit of this project has been made by the Operations Evaluation Department at this time. Attachment ~'k This document has a restricted distribution and may be used by recipients only in the performance or their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  FOR OFFICAL USE ONLY POJECT COMPLETION REPORT DEMOCRAI7.C REPUBLIC OF MADAGASCAR 'YCLONE REHABILITATION PROJECT (CREDIT 1526-0-MAG) AND SUPPLEMENTAL CREDIT (CREIT 1526-1-MAG) TABLE OF CONTENTS Page No. Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fre-luLktion Summary . .. .. . . . . . . . . . . . . . . . . .. .s PART r: PROJECT REVIEW EDON IDA'S PEOSP=CTIVE A. Project Identity. .. . . . . . . . . .. 1 B. Background. . . . . . . . . . .. C. Project Objectives and Description . . . . . . . . . . . Project Objectives . . . . . . . . . . . . . . . . . . . . . . . 2 Project DOescription ........ .... . . . . . . . . . . . . 2 D. Project Design and Organization. . . . . . . . . . . . 3 E. Project Impl entation 3 . . . .. 3 Credit Effectivoness and Project Start-up 3 Implementation Schedule . . . . . . . . . . . 4 Procurment ;. . . . . . . . . . 4 . . . . . . . . . 4 Project Costs . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Disbursements . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Credit Allocation s . . . . . . . . . . . . . . . . S Finacingl... . . . . . . . . . .. . . . . . . . . . . . S F. Projoet Results . . . . . . . . . . . . . . . . . . 6 Project Objectives 6 Physical Results . . . . . . . . . . * . . . . . .. 6 Institutional Performanca . . . . . . . . . . . . . . . . . . . . 6 Financial Performance...... . ...... . 6 G. Project Sustainability .................... . 7 H. Bank Performance .. . . . . . ..... . 7 I. Borrower Performance . . . ..* . . . . . . 7 J. Project Relationship ..................... . 8 K. Consulting Services . . . . . . . 9 . . . . . . . . . . . . L. Projoet Documentation and Data 8 RT ls PROJEaCT FROM B0RR0'S PERSPECTIVE . 9 PART fljt STATISTICAL INPORMATION Related Bank Credits . . . . .. . . . . . . . . . . . . .. 30 Project Timetable . . . . . . . . .. . . . . . . . . . . . . 31 Credit Disbuxrsements * * * * * * . - - - -. * 32 Disburse _ s by Quarter .. . . .. .............. 33 Project Costs and Financing . . . 34 Ue- of Bank Resources . . . . . . 99999999999 35 Map I8RD No. 2003SR 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.  PROJECT COMPLETION REPORT DEMOCRATIC REPUBLIC OF MADAGASCAR CYCLONE REHABILITATIO', PROJECT (CREDIT 1526-0-MAG) AND SUPPLEMENTAL CRrDIT (CREDIT 1526-1-NAU' MEFACK 1. ThiL is the Project Completion Report (pCR) for the Cyclone Rehabilitation Project in Madagascar, for which Credit 1526-MHa in the amount of SDR 14.8 million tra approved on October 30, 1984. A Supplemental Credit, in the amount of SDR 8.8 million was approved on August 5, 1986, and the Credit Agreement was amended accordingly. The Credits were closed on December 31, 1989, as scheduled in the Amnding Agreement. They wore fully disbursed and the last disbursements were on Hay 21, 1990 for Credit 1526-0- MAG, and may 18, 1990 for Credit 1526-1-HAG. 2. The PCR was jointly prepared by the Infrastructure Operations DivisioLl of the South-Central and Indian Ocean Department, Africa Regional oQfice (Preface, Evaluation Summary, Parts I and II), and the Borrower (Part II). 3. Preparation of this PCR was started during the Bank's final supervision mission of the project in July 1989, and is based, inter alia, on the President's Reports, the Credit Agreement and the Amnding Agreement, supervision reports, irrespondence between the Bank and the Borrower, and internal Bank memoranda.  - Li - PROECT SOPLTON REPORT DEMOCLW.TIh L!PUBLIC OF MADAGASCAR CYCLONE REHABILITATION PROJECT (CREDIT 1526-0-MAG) AND SUPPLEMENTAL CREDIT (CREDIT 1526-1-NAG) UVALMAIONSUMR 1. The project's major objectiveg were tot (i) contribute to the physical and economic rehabilitation of the areas damaged by Cyclone Kamisy (of April 9, 1984) and Cyclone Honorinina (of March IS, 1986)t (ii) support lnstitutionai arrangements appropriate for efficient coordination of reconstruction efforts on this and possible future occasionsu and (iii) help develop masures to minimiLz the potential damage from natural dLsasters that are prone to occur to vulnerable areas of the country. 2. During the appraisal mizsLon, IDA requested the establlshment of a National Coordination Coumittee (CNC), asoisted by extornal consultants, fox the implementation of the project. The comittee's performance was very good. Almost all the works were completed before the orlgLnal schedule, anf withln the appraiLal cost estimate. The bid, documents were very welt prepared and ready on time. There was no problem in the bid evaluatLot process and supervlilon of works was done smoothly. The performanco of the contractors was generally excellent. The only exceptlon concerned the rehabilitation of public buLldings ln Toamasina, the second phase of which was awarded to a contractor who, contrary to CNC's assertions, had badly pe-formed under the fLrst one. To overcom the problem, IDA required CNC to cancel the contract or to have the works managed by the supervising consultLng firm. The latter was done and the works were carrled out relatively well, even though the delays were not made up for. 3. Overall, the project was successful in meeting its objective of rehabilitating infrastructure in areas dmaged by the two cyclones. In addition, the credlt flnanced an urban and drainage study for Mahajanga, which could serve as a basLi for a future IDA assisted project ln Madagascar. 4 on the nstitutional and flnaniaLl side, the performance was also impressive. ClC was established on a permanent basis and has been useful and efflclent for the repair of dmages caused by more recent cyclones, partlcularly Cyclone Calasanjy in the czrig of 1989. 5. Finally, the project Lncluded studies to provide technical solutlons for low cost cyclone-resistant constructlon and lead to the preparation and dlssemination of antl-cyclone construction standards, whlch &re now wldely used ln Madagascar. 6. The Credlt holped the Government strengthen lts procedures for copLng wlth natural dlsasters. When the HonorinLna cyclone occured in March 1986, CRC was able to react very quickly and s*mo urgent works wer started in Aprll 19S6, wlth the approval of the appraisal issiLon. Noro recently,  - iii - Government has been ablo to appropriately handle rehabilitation of infrastructure in areas damaged by cyclonez and floods, albeit with some delays. Findines and L-sscn1s Learnd 7. This project is another clear demonstration that, in special circumstances, IDA has the capacity to process a credit in as little as three months from identification to Board presentation. Efficient appraisal team and task management lz obviously a critical factor in such a situation. Elapsed time between every step of credit processing was reduced, except the Board package which was sent an usual to the Executive Directors 13 working days before Board pr-sen'tation. The project also showed that, in the absence of tie for detailed project preparation, with strong supervision, it is possible to ensure that appraisal costs estimates closely match the actual costs at the end of the project. 8. The main 1. soon learnt is the necessity to have a strong coordinating unit on the Borrower's side, and to give it the possibility to manage the procurement process with flexibility. This lesson is particularly relevant at a time when a very sizeable effort to rehabilitate the infrastructure in the country in underway, and when the procur ement legislation is being overhauled.  PROJECT COMPLETION REPORT DEMOCRATIC REPUBLIC OF MADAGASCAR CYCLONE REHABILITATION PROJECT (CREDIT 1526-0-1iAG) AND SUPPLEMXNTAL CREDIT (CREDIT 1526-i-HAG)-_ PART I: PROJECT REVIEW FROM BANKS PERSPECTIVE A. Protolt L4"t*it 1.01 Proieet Data Name Cyclone Rehabilitation Project Credit Numbers s 1526-0-HAG and 1526-1-MAG RVP Unit Africa Region Country Madagascar Sector Urban, Transport, Water Supply and Sanitation R. Bsakground 1.02 Every year, Madagascar in hit by about ten cyclones or tropical depressions, during the cyclone season, from December '.o March. For most of the , the damage is minimal, but sovere cyclones occur from time to time. The most devastating occured in 1929, 1956, 1959, 1972, 1975, 1984 and 1986. in 1984, after the cyclone season, Cyclone Kamisy hit the City of Antsiranan4 on April 9, then Mahajanga on April 11 before crossing the Island from West to East, through Antananarivo to Toamasina. Due to the extreme violence of the winds (more than 250 km/h) and very heavy rainfalls, severe damage wau caused in the provinces of Antsiranana and Mahajanga to ports, airports, roads, buildings, irrigation schemes and the power network. 1.03 Two years later, on March 15, 1986, another Cyclone, Honorinina, again severely struck Madagascar. It devastated the Toamasina area and damaged key infrastructure throughout the eastern part of the country, principally the breakwater of the Toamasina Port. Crops of coffee and cloves were partly destroyed (6% and 50% respectively), and the value of exportable stocks of coffee and cloves that were destroyed by the cyclone (1,900 tons and 3,560 tons, respectively) was estimated at US S 17 million. 1.04 In 1986, the cities of Toamasiaa, Mahajanga and Antsiranana had about 180,000, 120,000 and 70,000 inhabitants respectively. Their ports are the three main ports of Madagascar. In Nahajanga province, there is major agricultural infrastructure such as the irrigation zone around Marovoay (100 km south of Mahajanga), operated by the Betsiboka Rlce Company (FIFABE), which is the country's socond most Lmportant rice surplus area after Lac Alaotra. The area includes main cotton producing zones of Madagascar which support an important textile industry. Agriculture is less concentrated in tlt Toamasina province, which is specialized in export crops such an coffee, cloves, vanilla, bananas, peppers and lich-es. 1.05 The President of the Republic of Madagascar requested, by telexes of April 16, 1984 and March 18, 1986, the assistance of IDA to help repair the material damage caused by theso cyclones. To rospond to these requests, Bank missions visited Madagascar from May 25 to June 5, 1984, and from April 13 to 27, 1986. The purpose of these mirsions was to estlmate the damage, define the priorities and set up a rehan'li1tation program with cost details that could be proposed to IDA and othir financing agencieo.  -2- C. PrIoeat Oblectivls and Descrintoa Proiect Obi_etives 1.06 The major project objectives were to: (a) contribute to the physical and economic rehabilitation of the areas damaged by Cyclones Kamisy (April 1984) and Honorinina (March 1986)g (b) support institutional arrangemnts appropriate for officient coordination of reconstruction efforts; and (c) help develop measurea to mi:iimize the potential camage from natural disasters in the future. Proiect Description 1.07 The first project (Cr.1526-O-MAG) consisted ot X physical components: (a) Ports In Mahajanga, rehabilitation of Vuillemain and Barriquand wharves, repair of offices, housing and warehouses, repair or replacement of port equipment (navigational aids, launches, tugs and spare parts) and, in Antniranana, rehabilitation of the old and now wharves, restoration of buildings and housing, and repair or replacement of port equipment. (b) Airports. In Mahajanga and Antriranana, repair of air terminal, technical facilities, control tower, staff residences and hangars; replacement of equipment (radio, pylon., antennae, landing aidc; generating set and fire engine); and restoration of meteorologica? utations including communication, telex and telephone equipment. (c) Roadg. RN4s reconstruction of Ambdromalandy Dike, bridge and spillway; RN8s: rehabilitation between RN4 and Marovoay; and RN6: repair works between Ambondromany, Port Berge and Ambanja. (d) Public Buildinas. Repair of educational buildings, administrative offices and public housing (about 35 buildings in Mahajanga and 31 in Antsiranana). (e) Ariculture. For FIFABE, restoration of its fleet by purchasing one tug and two barges; re-establishment of spare parts stock and repair of 15 buildings at Marovoay and Mahajanga. (f) Power. For the National Water and Electricity Company, Jira Sy Aano Malagasy (JIRAMA), rehabilitation of power plants and networks in Mahajanga, Antriranana, Toamasina, Nossi-Be, Ambato-Boeni and Marovoay; repairs to buildings in Mahajanga, Antsiranana, Antananarivo and other sectors; and re-establishment of vehicle spare parts stock. 1.08 The project also includedz (g) Housina credits to be made available through two banks,BTM and BFV, to private owners for the reconstruction of their houses, provided the damage was caused by the cyclone; the repayment period was ten years with two years of grace and the interest rate was 12 percent per annum. (h) Consulting Services. (i) Urban planning and drainage study for the low income neighborhoods of Mahajanga; (ii) two experts assisting the National CoordinatLon Committee; and (iii) assistance in supervising program execution. 1.09 The second cyclone project includod the following components, for Toamasina and Sainte-Marie:  -3- (a) Rehabilitation of tho breakwater, protection of Pier C and relocatlon of Tanic Lighthouse. (b) Aignxt. Repairs to buildings and replacement of navigation aid equipment. (c) B2KW. Repair works on RN5, RN6 and in Sainte-Marie Island. (d) Public Buildinas. Reconstruction of schools, health facijities and administrative offices in Toamasina and Sainte-Marie Island. (a) Conultina Services. (i) technical assistance to CNCt (ii) Toamasina breakwater study; and (iii) supervision of buildinIgs reconstruction. D. Prolect Dfeasn and Organisation 1.10 In view of the emergency nature of the job, there was no detailed project preparation. When IDA received the request of the President of Madagascar for emergency assistance, in April 1984, the Bank decided to send an identification mission to assess damage and determine how best to assist Madagascar. However, in order to save time, the mission decided to define priorities and to appraise a rehabilitation project immediately. The same process was used in March 1986 for the second project. 1.11 In the pre-departure issues paper, it was suggested: (a) to require the establishment of a coordinating central unit for th9 whole project, taking into account the number of ministries involve (five); (b) to require decisions to avoid cumbersome procurement procedures, usual in Madagascarl and (c) to grant a US $ 1.0 million PFF to finance emergency works, and to reallocate financial resources available under existing projects which could assist in the rehabilitation of cyclone damage, without changing the nature of the existing credits. 1.12 The above measures were proposed by the appraisal mission to the Government and agreed upon. The first requirement was met on July 20, 1984 by decree No.84/260 establishing a National Coordination Coumittoe (CNC), under the responsibility of the Minister of Finance. The management of this committee was defined by the "Arr6t6 Intertninist6riel 3177/84 " of July 23, 1984. The second one was met by a special decree No.84/236, signed on July 18, 1984, to derogate to the common regulation of " March6s Publics ". In particular, the prior review of contracts by the Commission Centrale des March6a (Central Tender Bou<A) was waived. These arrangement were maintained Ror the supplementi credit 1526-1-MAG, until the closing date. 1.13 The most urgent studies and works were financed by a PPF No. P297-MAG and other existing credits: the Second Zducation Project (Cr.663-MAG), the Water and sanitation Project (Cr.1002-MA