Rwanda - Emergency Recovery Project

Document of The World Bank Report No. T-6483-RW RWANDESE REPUBLIC EMERGENCY RECOVERY PROJECT TECHNICAL ANNEX JANUARY 12 1995   RWANDESE REPUBLIC EMERGENCY RECOVERY PROJECT TECHNICAL ANNEX TABLE OF CONTENTS A. The Emergency and The Government's Response ..............................................1 B. IDA's Response and Strategy ..............................................4 C. Emergency Recovery Program Objectives and Description .........................................5 D. Technical Assistance ............................................. 11 E. Institutional Arrangements and Program Implementation ........................................... 11 F. Estimated Program Costs and Financing Plan .................... ......................... 14 G. Agreed Actions ............................................. 15 ANNEX I Restructuring of IDA projects ANNEX 2 Indicative Technical Assistance ANNEX 3 Positive List of Imports This Report is based on the findings of an appraisal mission which took place in November 14-30, 1994. The appraisal team consisted of Julio Gamba (Mission Leader), Esperanza Du.-an (Task Manager), Abdelmoula Ghzala (Infrastructure), Richard Senou (Energy), Eileen Murray (Social Sector), Francois Munyantwali (Health, Education), Bertrand Ah-Sue (Procurement), Claude Heimo (Agriculture) and Gilbert Barreix (Consultant--Private Sector). Manorama Gotur provided editorial support for the report. The Ad Hoc Advisory Group for the project consisted of: Michel Pommier (OPRPG), Kishor Uprety (LEGAF), Alberto Harth (AFIIN), Sadiq Ahmed (SA3DR) and Linda English (AF3C2). Michael Sarris and Francisco Aguirre-Sacasa are, respectively, managing Division Chief and Department Director for the operation.   RWANDESE REPUBLIC EMERGENCY RECOVERY PROJECT A. THE EMERGENCY AND THE GOVERNMENT'S RESPONSE The Emer2encv 1. The Civil War. The Rwandan civil war was the culmination of continued and widespread opposition to President Juvenal Habyarimana, who had seized power in a coup in 1973. In late 1990, the rebel Rwanda Patriotic Front (RPF) -- composed mainly of refugees living in neighboring Uganda -- invaded Rwanda, seeking to militarily overthrow the regime. The Rwandan army fought the invading group to a standstill, but fighting between the army and the RPF continued on and off through early 1994. Meanwhile, the internal opposition to President Habyarimana organized into a number of political parties. 2. Beginning in 1992, neighboring Tanzania sought to defuse the growing Rwandan crisis by sponsoring peace talks in Arusha between the Habyarimana regime and the RPF. In August 1993, a peace agreement was signed in Arusha -- which included a cease-fire, repatriation of refugees, and power-sharing arrangements -- but implementation of the accord lagged. The situation was at an impasse as of April 6, 1994, when President Habyarimana's plane was mysteriously downed over the airport at Kigali (Rwanda's capital) as he was returning from a further round of negotiations, accompanied by the president of Burundi. Both presidents were killed, and immediately thereafter, the Rwandan blood bath began. 3. Subsequent events are well known. Over several months of violence that shocked the world, up to one million people (15 percent of Rwanda's population) were killed. The victims were mainly Tutsis, but up to 200,000 opposition Hutus were also killed by militiamen and some factions in the army. Fighting between the RPF and the army also resumed. By mid-July, the RPF achieved military victory and a new government was sworn in on July 19, 1994. The President, the Prime Minister and most Cabinet members are Hutus, belonging mostly to parties that had been aligned against the Habyarimana regime. 4. The situation in Rwanda -- and, indeed, in the region -- is precarious. Some two million refugees have fled to neighboring Zaire, Burundi and Tanzania, where they have been living in large, squalid refugee camps. Another million have been displaced within Rwanda and are also facing the grim conditions of camp life. The country has a new government but virtually no administration. On average, only about a fifth of public sector professionals are currently at work, as most officials have either been killed or fled the country. The new government is nearly devoid of financial resources and has barely been able to pay the army.  2 5. Within this explosive framework, the new government is confronting the complex task of consolidating peace and national reconciliation, seeking to reintegrate into the country both old and new refugees while initiating efforts to rehabilitate the economy and stimulate recovery. Should these efforts fail, conditions could once again degenerate and throw the entire region into a renewed state of turmoil. In this difficult situation, the donor community is looking to the Bank to take the lead in mounting a rehabilitation-cum-recovery effort that would help reduce tensions in Rwanda and get the country back on the road to recovery. 6. Economic and Social Impact. Although relatively short, the Rwandan civil war dealt a severe blow to the foundations of a narrow and fragile economy, badly battered even before this latest crisis. As estimated by Bank staff, real GDP declined by as much as 50 percent in 1994; this came on the heels of an 1 I percent contraction in 1993. More than half the country's agricultural and industrial output has been lost, while most Rwandan enterprises are not operating. The collapse of the banking system is also impeding efforts to normalize economic activities. Bank notes have virtually disappeared from circulation, foreign exchange reserves have vanished, coffee stocks have been stolen and the government can barely generate revenue. Damage to physical infrastructure such as roads and bridges has been relatively modest, but human losses have been huge; as a result, the central administrative capacity has been paralyzed. The country's institutional memory and project implementation capacity have been all but wiped out by the killings and disappearance of personnel, destruction of files, and theft of computers and equipment. Overall, the sharp decline in economic activity has intensified poverty in Rwanda, which ranked among the poorest countries in sub-Saharan Africa even before the crisis. 7. Losses of agricultural output were particularly severe because of the widespread dislocation of people; furthermore, the most violent phase of the war coincided with the harvesting season. Although subsistence crops were not totally lost, being harvested by passers-by, cash crops were badly affected: only about 700 tons of coffee were formally exported (the annual average had been around 30,000 tons). Tea was not exported at all in 1994 and almost all the tea plantations and processing plants were destroyed. Estimates of industrial losses in the private sector range between 60 and 80 percent of normal annual output. Although infrastructure was mostly spared by the violence, public buildings, particularly in Kigali, were significantly damaged. The state of many roads and bridges has deteriorated due to both lack of maintenance and damage caused by the rainy season. In the areas of energy, and water and sanitation, the war made it impossible to carry out normal maintenance, thereby compounding an already precarious situation. Although water supply has been almost normalized in Kigali, other cities and the countryside are facing serious shortages. 8. The crisis caused a sharp drop in the delivery of social services; particularly hard hit were health and education. A sizable part of the services personnel in both sectors was killed or fled. Medical supplies, essential medicines and vehicles were  3 stolen, medical centers were damaged and normal distribution channels broke down. Equally, educational infrastructure and equipment were stolen or vandalized. Nevertheless, some primary schools had restarted activities by mid-September 1994, albeit with greatly reduced resources: student/teacher ratios, already high before the crisis (57 primary pupils per teacher) have greatly deteriorated; school buildings have been damaged and basic equipment and essential learning materials (textbooks, notebooks, pencils, etc.) are lacking. Re-establishment of basic social services to normal levels would facilitate the return of displaced persons and refugees to their homes. 9. Early Emergency Assistance. Beginning in the summer of 1994, external assistance began to arrive in the region mainly to provide relief to Rwandan refugees in neighboring countries. Total outlays since the onset of the crisis have been estimated at over US$1.0 billion. Early on, the UN made a consolidated appeal to donors for US$435 million to meet needs in July-December 1994 related to the provision of food aid, health, nutrition, education, water supply and sanitation and the related logistics; a similar appeal, for US$230 million, is to be launched in January 1995 to cover the entire year. Donors have responded generously. In addition, NGOs have been extremely active. The Bank has also participated in the relief effort: in August 1994, the Executive Directors approved grants totaling US$20 million to four UN agencies (UNICEF, UNHCR, FAO and WHO). The objective of these grants is to help lay the foundations of a broad-based reconstruction and development program, filling identified gaps in each of these agencies' programs for Rwanda, with particular emphasis on the emergency needs of returnees. Agreements with the agencies on indicative programs were completed; the first tranche (for a total of US$11 million) has already been disbursed to all four agencies. According to a progress report prepared in December 1994 by the UN agencies and the Bank's resident mission in Kigali, implementation of the grants is proceeding well; more than 60 percent of the first tranche has already been spent and release of the second tranche is expected to take place before the end of February 1995. The government of Rwanda was not a party to the early relief efforts, as none of the early assistance was channeled through it. With a firmer grip on the administration, the new government is now initiating efforts to respond effectively to the current situation; however, lacking even basic resources, it is anxious for international support. 10. The Government's Response. The Government of Rwanda has embarked on rebuilding the nation and the economy. To that end, it is taking steps to demonstrate its commitment to peace based on national reconciliation. Important among these is the agreement to appoint a high-level official to head the country's human rights efforts. An essential condition for fostering national reconciliation is the resettlement within Rwanda of both refugees and internally displaced persons; equally critical are efforts towards the rehabilitation and development of infrastructure as well as socio- economic recovery. The government has sought international support for getting on with the urgent task of reconstruction and for taking up, once again, the economic reform agenda. The total costs associated with reconstruction and resettlement are  4 estimated by the government at US$764 million, to be incurred over several years. The government's Emergency Recovery Program (ERP) for 1995 represents a short- term recovery program aimed at addressing the country's most immediate reconstruction needs, including the re-establishment of the government's capacity to rebuild the nation. The ERP has a total cost of US$200 million and was designed in consultation with donors, on the basis of an IDA preparation mission in September 1994 followed by an appraisal mission in November 1994. 11. The government recognizes that national reconciliation is essential for the success of the recovery effort and for the sustainability of donor support. In this regard, a multi-party National Assembly was sworn in on November 29, 1994. Furthermore, the government issued in December 1994 a Declaration of Principles spelling out its political, social and economic agenda for a "New Rwanda". On the political side, the Declaration deals with political-cum-reconciliation issues such as human rights and policy actions to stimulate the return of refugees. Specifically, the government is allowing the deployment of human rights monitors and UN troops, seeking support for establishing an impartial judicial system; and ensuring adherence to property rights. Regarding social issues, the Declaration recognizes the sharp decline in recurrent and investment expenditures for social services relative to pre-war levels, and the resulting need to urgently rebuild and re-equip health and school infrastructure. Shortage of qualified managerial and other staff is, however, identified as a major constraint. The Declaration also promises special efforts to address the needs of vulnerable groups, including women, children and surviving war victims. 12. On the economic side, the Declaration addresses issues such as the size and scope of government, the role of the private sector, the privatization of public enterprises, the trade and exchange regimes, the appropriate level of military expenditures and regulatory reform. The new government is committed to: a reduced role for the state; as much as a 50 percent decrease in the number of civil servants compared to the pre-crisis era; a private sector freed of unnecessary regulations to enable recovery and growth in the productive sectors; a liberal trade and exchange rate regime; and flexibility in labor and financial markets. The current economic team includes the Minister of Finance and Director of the Ministry of Planning, who had both shown commitment to liberalizing the economy while holding the same posts in pre-crisis administrations. The Declaration's economic principles, and accompanying actions, would serve as the basis for a medium-term macroeconomic framework to be designed by the government in close consultation with the Fund and the Bank. A joint Bank/Fund mission is scheduled to visit Rwanda in February 1995; these consultations and the government's early actions would pave the way for a possible Fund ESAF arrangement and a resumption of adjustment lending by the Bank. B. IDA'S RESPONSE AND STRATEGY 13. Rationale for IDA Involvement. The Country Assistance Strategy for Rwanda presented to the Board in June 1992 was geared to the country's long-term  S development needs. It focused on the goal of promoting private sector-led, export- oriented economic growth, poverty alleviation, a reduced role for the state, and protection of Rwanda's environment. These goals remain valid, but reconstruction is the immediate order of business to get the country through the most critical survival and recovery phase. IDA response has been two-fold, consisting of the proposed Emergency Recovery Credit (ERC) (US$50 million) and the restructuring of ongoing credits (US$25 million). Beyond these actions, as the situation begins to return to normal, preparations would commence for the resumption of IDA lending that was suspended in April 1994, when Rwanda was placed in non-accrual status. At this time, the proposed ERC would support the government's efforts in meeting urgent post-war needs and pave the way for renewed implementation of economic reform, by helping to restore institutional capacity and financial viability. This operation would also serve as a catalyst for a coordinated global approach to the reconstruction of Rwanda and encourage burden-sharing amongst donors; as such, it represents an important part of a broad-based international rescue effort 14. Donor Coordination. Donor coordination is an important element in the preparation and implementation of Rwanda's recovery program. The Bank convened two donor meetings in Paris, in September and October 1994. With growing world confidence in the new government's commitment to national reconciliation, most donors have declared their readiness to participate in the international effort to rehabilitate the country. Belgium, Canada, the Netherlands, Norway, Switzerland and the United States have already provided funds to settle Rwanda's arrears with the Bank through June 30, 1995 (US$9.5 million). Donor mobilization to cover Rwanda's reconstruction needs for 1995 is at an advanced stage, although not yet completed; commitments will be more firmly established at the Round Table for Rwanda to be held in January 1995. As of now, firm commitments amount to US$81 million from the European Union (EU). Funding for reconstruction needs is also expected from the African Develpoment Bank, Belgium, Canada, Germany, the Netherlands, Switzerland, the United States, and other countries. Finally, balance-of-payments support is likely the TMF, which is expected to make available in 1995, initially about US$13 million under the Compensatory and Contingency Financing and Facility (CCFF) and, subsequently, a larger amount under the CCFF and another facility to be determined. Apart from these contributions, donors are expected to provide US$25 million through the restructuring of ongoing projects. C. EMERGENCY RECOVERY PROGRAM OBJECTIVES AND DESCRIPTION 15. Project Objectives. The ERC aims at helping Rwanda begin to overcome the problems created by the events of the past months, and facilitate the return to normal life and productive activities. Success in the pursuit of this objective is important for both the ongoing process of national reconciliation and for creating conditions for longer-term development. Towards that end, the operation is designed to: (i) help the new government begin the restoration of key economic and social services, rebuild the  6 institutional capacity necessary for sustainable economic recovery, and design a coherent economic policy framework; and (ii) provide the private sector with the means to resume operations and create jobs. 16. Project Description. The proposed credit of US$50 million would help support the government's ERP during 1995. The project's components support imports (by the government and the private sector) of high priority items on a broad positive list, and technical assistance to help implement reconstruction and establish basic government functions. Eligible imports would include spare parts, inputs and capital equipment in priority sectors such as agriculture, industry, transportation, energy, water and sanitation, education, and health. The project is part of a broader support effort (para. 17) which also features the restructuring of the Bank's and other donors' existing portfolios to make them more responsive to Rwanda's immediate priority needs. These combined efforts should lay the groundwork for economic activity to rebound in 1995. (See Section F, Estimated Program Costs and Financing Plan and Annex 1, Restructuring of IDA Projects). 17. The 1995 Emergency Recovery Program. Rwanda's overall funding needs under the ERP for 1995 amount to US$200 million. The proposed ERC would finance US$50 million of reconstruction-related import needs, including short-term technical assistance. Other donors are expected to fund the remaining US$100 mnillion; firm commitments to date amount to US$81 million (para. 42). This quick- disbursing support by IDA and other donors would be complemented by the restructuring -- amounting to US$50 million -- of ongoing donor-financed investment projects, including IDA's, to respond more effectively to Rwanda's immediate priority reconstruction needs. To facilitate private sector access to imports, special attention would be paid to the quick reactivation of the financial system and availability of credit to the private sector. This objective would be achieved primarily through the restructuring of the Bank-financed FY94 Private Sector Development Credit (Cr.2541-RW), under which US$12.7 million is undisbursed. 18. Indicative Sectoral Allocations. Preliminary estimates of the sectoral breakdown of the 1995 ERP, along with the respective contributions from IDA, are shown in Table 1. The IDA allocations are based on an analysis of priority needs for 1995, but maximum flexibility will be maintained to ensure effective complementarity with other donors and rapid project implementation. In all sectors, poor women, widows, and female-headed household are likely to be among the principal beneficiaries of the recovery program. Indicative components of the program in the respective sectors are described below.  7 Table 1 IDA Contribution to Rwanda's Economic Recovery Program (In millions of US dollars) IDA Contribution Sector ERP ERC Project Total (% of ERP) restructuring Private sector 40.0 25.9 3.2 29.1 (73%) Agriculture 40.0 6.0 2.0 8.0 (20%) Health 36.0 5.0 6.0 11.0 (31%) Education 30.0 4.0 3.0 7.0 (23%) Energy 21.0 - 1.0 1.0 ( 5%) Infrastructure 18.0 4.9 5.5 10.4 (58%0i) Instit. capacity 9.0 2.8 0.8 3.6 (40%) Other 6.0 1.4* 3.5 ** 4.9 (82%) TOTAL 200.0 50.0 25.0 75.0 (37.5%) * Central Bank of Rwanda (US$0.9 million), Commerce and Industry sector (US$0.5 million) ** To be identified 19. Private Sector ERP: US$40. 0 million ERC: US$25. 9 million (of which Technical Assistance: 0) IDA Restructuring: US$3.2 million The evaluation of the war's impact on the private sector is still preliminary, as formal business activities have been slow to restart. Technical assistance needed to help the private sector to fully appraise the extent of the damages will be funded from the Sectoral and Pre-Investment Credit (CR-1796-RW). The ERC contribution will focus on financing key imports to replace lost assets, encourage new private sector activities and restore the sector's operational capacity -- particularly for small and medium enterprises. IDA's assistance for the private sector needs of the ERP also includes the reallocation of US$3 million under the Private Sector Development Project (Cr. 2541-RW) to help reactivate the financial system and increase availability of credit to Rwandese businesses, and US$0.2 million under the Sectoral Studies and Preinvestment Project to finance a study to assess the current economic and financial condition of the sector and make recommendations for an action plan to rehabilitate industrial and trading activities. Among other donors, the EU has at present contemplated assistance for private sector activities, with a program of financial support for importing oil products, costing an equivalent of US$18.2 million.  8 20. Africulture ERP: US$ 40.0 million ERC: US$ 6.0 million (of which Technical Assistance US$1.0 million) IDA Restructuring: US$ 2.0 million The massive dislocation of the rural population has had serious consequences for Rwanda's agriculture and environment. Agricultural production and food security have been seriously disrupted; at the same time, displaced person camps have contributed to land degradation and severe deforestation (caused by uncontrolled felling for fuel-wood), increasing the risk of massive land slides. The Ministry of Agriculture has identified the most urgent needs for 1995 as follows: (a) distribution of seeds and agricultural inputs to returnees (refugees and displaced persons); (b) strengthening the ministry's capacity to coordinate and monitor the sector's emergency program; (c) establishment of a system for food security monitoring and rapid warning, during the emergency phase; (d) assistance for animal breeding, health and disease control; and (e) assistance for the rehabilitation of land and forest plantations damaged by displaced person camps. Given the earlier participation in seed distribution efforts by the Bank (through a USS$4 million grant to FAO as part of the US$20 million grant in August 1994) and other donors (the EU, USAID and several NGOs), the ERC will not finance this component of the program. The ERC contribution would instead finance imports of agricultural inputs (such as fertilizers, insecticides and agricultural instruments) and live animals for breeding and disease control supplies. In addition, the restructuring of IDA's Agricultural Services II project (Cr. 2026-RW) would help rehabilitate seed control laboratories, support the seed multiplication program and contribute to plant protection activities. 21. Health ERP: US$ 36.0 million ERC: US$ 5.0 million (of which Technical Assistance 1S$ 0.I million) IDA Restructuring: US$ 6.0 million Most of the country's health facilities were damaged in the war; stocks of medicines, supplies and equipment were either looted or vandalized. The Ministry of Health, as well as the country's hospitals and clinics, are operating with only 20 to 30 percent of their pre-war staff With assistance from WHO and UNICEF, the Ministry of Health has estimated Rwanda's emergency requirements in that sector as follows: US$11.6 million for a nutrition program; US$10.6 million to rehabilitate various health facilities; US$7.0 million to supply hospital equipment; US$3.5 million for drugs and medicines; US$1.5 million for technical assistance; US$1.4 million for vehicle purchases; US$300,000 for the training of qualified health personnel; and US$100,000 for operating costs. The ERC's contribution would mainly target the rebuilding of pharmaceutical stocks and health centers. IDA's contribution will also include the  9 reallocation of US$3 million under the Food Security and Social Action project (Cr. 2388-RW) to help provide nutritional supplements for vulnerable groups and rehabilitate social infrastructure; and US$3 million under the Population project (Cr.2272-RW) to meet reconstruction, training and equipment needs. Other agreed donor contributions include: US$1.6 million and US$400,000 from UNICEF for infrastructure rehabilitation and vehicle purchases, respectively; US$1.2 million from UNICEF and WVO for the purchase of drugs; and US$9.7 million in budgetary support from the EU to help rehabilitate the health and education sectors. 22. Education ERP: US$ 30. 0 million ERC: US$ 4.0 million (of which Technical Assistance US$0. 1 million) IDA Restructuring: US$ 3.0 million A total of 1,536 primary schools and 112 secondary schools suffered varying levels of damage from the war. A large number of staff in the Ministries of Primary and Secondary Education as well as teachers have either been massacred or are in exile. A remedial course has been organized for graduating high school students, to enable them to obtain their diplomas and thereby qualify for recruitment as teachers by the Ministry of Primary Education. Forty percent of the country's 17,000 teachers lack any formal pedagogic training. The Ministries of Primary and Secondary Education have identified the sector's most urgent needs for 1995 as follows: rehabilitation of school buildings (US$10.5 million); equipment and school supplies (US$7.6 million); textbooks and other teaching materials (US$5.6 million); vehicles (US$2.8 million); school feeding programs (US$2.4 million); short training programs for teachers (US$800 million); technical assistance (US$200,000); and operating costs (US$100,000). The ERC's contribution would primarily support the replenishment of teaching material supplies and the repair of schools. These needs would also be met by the restructuring of IDA's Education Sector credit (Cr. 2227-RW). 23. Enerey ERP: US$ 21.0 million ERC: No funding envisaged IDA Restructuring: US$ 1.0 million The importance of electricity for the proper functioning of hospitals, govemment offices and schools makes power restoration a critical element of efforts to normalize activity in Rwanda. Moreover, rehabilitation of the power grid would help restore water supply as well as telecommunications, in areas of interrupted service. A preliminary assessment of urgent, power-related rehabilitation needs indicates a total estimated cost of US$21 million for repairs or replacement of transformer stations and transmitters, power lines and the purchase of damaged or stolen generators. IDA will not contribute to the ERP's energy component under the  10 ERC but will restructure its Energy Sector Rehabilitation Project (Cr. 2456-RW) towards the financing of make-ready costs needed for Electrogaz to contract out selected private sector operators. Commitments from other donors to help fund urgent needs consist of US$5.4 million from GTZ, US$3 million of Canadian aid and US$2 million of Australian aid managed by UNICEF. 24. Infrastructure ERP: US$ 18.0 million ERC. US$ 4.9 million (of which Technical Assistance US$ 0.6 million) IDA Restructuring: US$ 5.5 million Although infrastructure was generally spared by the rampage, even the limited destruction caused by the war has been magnified by a long-standing indifference to proper maintenance and the effects of rain and normal wear-and-tear. Roads and bridges; public infrastructure. The bridges destroyed by the war and the poor state of the road network hamper transport related to both commerce and the supply of food and medicine; repair and upkeep of roads and bridges is therefore a high priority. The ERP has identified the following urgent needs: repair of the Kazenze, Rwabusoro and Sake bridges as well as those in the prefectures of Kigali, Byumba, Gitarama, Gikongoro and Butare-Cyangugu; and upkeep of national and urban unpaved roads, including streets in Kigali. Damage to public buildings was also considerable (although not structural), particularly in Kigali. The ERP envisages urgent repairs, particularly of key ministry buildings, and the provision of office equipment and vehicles needed for proper functioning of the administration. The combined cost of these components is estimated at US$13 million, including amounts needed to make Kigali airport fully operational. The ERC would contribute US$2 million towards imports of building materials and machinery. IDA's reallocation of US$5 million under its Transport Sector Credit (Cr. 2136-RW) would be used towards the repair of secondary rural roads. Water and sanitation The war affected water and sanitation facilities not only through the physical impact of shells and mortars but also because warfare further prevented timely repairs and maintenance, exacerbating the embedded effects of long- term neglect. Although water supply has been almost normalized in Kigali, other cities and the countryside are plagued by constant cuts due to both leakages and the lack of power generators or fuel for pumping stations. The ERP estimates costs for this subsector at US$5.0 million, to cover: technical assistance to the Ministry of Public Works to assess the damage to water treatment and pumping stations and sanitation and distribution networks, repairs to urban water plants, generators, water counters and related gear; purchase of chemicals for water treatment for the next twelve months, repairs in rural areas; and private company (twelve-month) contracts for waste disposal in Kigali and other urban areas. The ERC contribution would be used to finance imports of generators, meters and chemicals for water treatment. IDA's  additional contribution through the restructuring of the Water Supply II Credit (Cr. 1783-RW) would be used to support the repair of rural water systems. 25. Institutional Capacity ERP: US$ 9.0 million ERC: US$ 2.8 million (all Technical Assistance) IDA Restructuring: US$ 0.8 million The severe human losses resulting from the war have created an enormous gap in the country's institutional capacity, (para. 27). A sum of US$ 2.0 million, out of the total ERC contribution, is to be used towards the establishment of a procurement agency to ensure efficiency in the procurement and utilization of imports, as mentioned earlier and as discussed in greater detail in para. 32 (Procurement Arrangements). IDA will also help meet Rwanda's institutional capacity needs through the reallocation of US$ 1.0 million under its Sectoral Studies and Preinvestment project (Cr. 1796- RW), for preparation of studies related to land use and resettlement. 26. Other ERP: US$ 6.0 million ERC: US$ 1.4 million (of which Technical Assistance US$0.4 million) IDA Restructuring: US$ 3.5 million Other ERP costs to be financed by the ERC include: the importation of vehicles and equipment to meet the needs of Rwanda's commerce and industry ministry as well as the central bank (BNR); and technical assistance to support the resumption of normal operations at BNR. D. TECHNICAL ASSISTANCE 27. One of the war's most tragic consequences was the loss of more than 10 percent of Rwanda's population and the massive exodus of the country's human resources. The resulting collapse of administrative and project implementation capacity has been catastrophic. Thus, the early provision of technical assistance for the short-term recovery effort and to help restore pre-war human resource levels is critical. The ERC proposes a total of US$5 million to help meet the technical assistance needs identified under the ERP. High priority will be given to strengthening: (i) local project implementation capacity (for the proposed credit and other projects) in procurement and project managment by providing short-term technical support to key ministries and by contracting a private agency to perform these functions temporarily, and (ii) capacity to carry out key government functions. The latter will cover: strengthening the economic ministries in project-related areas, such as preparation and monitoring of the budget and of the public investment and  12 expenditure programs in the Ministry of Finance; public investment and structural adjustment planning in the Ministry of Planning; foreign exchange management in the BNR; economic and financial programming in the office of the Prime Minister; and administrative law in the Ministry of Justice. 28. Technical assistance to help establish basic government functions and recovery will also be funded by a number of donors. A detailed technical assistance program would include the services of short-term foreign experts to carry out specific tasks and provide training. The IMF, for instance, will assist the government in reconstituting its revenue collection and tax administration efforts; it will also help in the re- establishment of basic central bank functions, including accounting and bank supervision as well as reconstituting the collection of key economic data for policy making. A number of other donors/agencies are already providing technical assistance in key ministries. UNICEF has provided technical services to the Ministry of Health while the UNDP has already placed people and equipment, in the Prime Minister's Office, the Ministries of Planning, Finance, Interior, Justice and Rehabilitation. Other donors plan to support the re-establishment of the justice system. Annex 2 presents indicative technical assistance to be provided by donors, including the Bank. E. INSTITUTIONAL ARRANGEMENTS AND PROGRAM IMPLEMENTATION 29. ERP Management. Particular attention was paid to project implementation arrangements, procurement and disbursement procedures and the special account. A Project Coordination Committee (PCC), composed of the Ministers of Finance and Planning and the Governor of BNR, will be responsible for overall project coordination. A Project Manager will oversee the day-to-day project implementation in close collaboration with a central procurement agency (see below). 30. Procurement Arrangements. Given the government's limited capacity to manage the implementation of the ERP, procurement execution and contract management will be delegated to a general, centralized procurement agency. The agency would meet all public sector procurement needs, and would also serve the private sector if so requested (by private sector participants). The agency will be recruited competitively from a short list of agencies specialized and qualified in general procurement and contracting, in accordance with Bank guidelines. A consultant will assist the Ministry of Finance in the preparation of the detailed terms of reference and contractual documents, and in the selection of the procurement agency. As the key contract signatory, the Ministry of Finance will ensure that the government delegate management of procurement and contract administration to the agency. The agency will be responsible for: (i) assistance to the different ministries in establishing their needs; (ii) provision of the full range of procurement services for goods, works, consultancy services and technical assistance including advertising, invitation to bid, reception of bids and bid evaluation; (iii) training and local capacity-building in  13 procurement and international commercial practices, and (iv) preparation of a Country Procurement Assessment Review as required by Bank policy, and recommendations for setting up new procurement legislation, procedures and practices, including reporting and monitoring activities. The agency will follow and apply the Bank's procurement guidelines for the procurement services described above, act in a fully transparent manner and be subject to periodic financial and technical auditing. It will also be monitored by Bank supervision missions. 31. Procurement of Goods. Import contracts for both the public and private sectors above a US$2.0 million threshold would be procured under Simplified International Competitive Bidding procedures in accordance with Bank guidelines. This will involve: (a) advertising in a local newspaper and either in the Development Forum or a newspaper/technical journal of wide international circulation or a notice to embassies/representations located in Rwanda; (b) the use of standard bidding documents; and (c) preparation of an evaluation report based on a format acceptable to IDA. Pre-shipment inspection for quality and quantity will be required. 32. Import contracts for the public sector up to US$2.0 million (each) would be procured under simplified International Competitive Bidding (ICB) procedures in accordance with Bank guidelines. The use of standard bidding documents would be required, as would a pre-shipment inspection for quality and quantity. As far as possible, imported goods for the public sector would be packaged into contracts exceeding US$100,000. Goods contracts for the public sector for amounts up to US$100,000 each, up to an aggregate of US$1.0 million, may be purchased through international shopping, which would require, at a minimum, quotations from three suppliers. 33. Import contracts for the private sector up to US$2.0 million (each) would follow established commercial practices, which appear compatible with competitive purchasing methods and are thus acceptable based on discussions with some major private importers. Pre-shipment inspection for quality, quantity and price would be required. 34. Consultancy Services and Technical Assistance. All contracts for consultancy services and technical assistance would be procured in accordance with Bank guidelines. The use of a Model Letter of Invitation and the Bank's standard consultant contract would be required. 35. Procurement Review Procedures. Since the government would delegate responsibility for all procurement activities to the procurement agency, only contracts above US$2.0 million would be subject to prior review by the Bank. All contracts for goods up to US$2.0 million will be subject to review prior to contract award and signature by the Bank's Resident Representative, who would be assisted by a procurement officer. All consultancy (firms and individuals) contracts for amounts  14 above US$100,000 each, and individual consultant contracts above US$50,000, would be subject to prior review by Bank Headquarters. 36. Disbursement. The proposed credit would finance 100 percent of imported goods for the private and other sectors including direct cost, insurance and freight of goods imported from eligible sources based on a positive list (see Annex 3). Expenditures in excess of an aggregate amount equivalent to US$10 million of petroleum products shall not be financed under the credit. Imports financed under other development assistance programs will not be eligible for financing under the ERC. Disbursement for contracts would be made on the basis of the following documentation: (i) brief description of advertising and procurement procedures; (ii) evaluation report including comparative statement of prices; (iii) copy of contract; (iv) copy of invoices; (v) proofs of payment; (vi) pre-shipment inspection certificate; (vii) shipping documents; and (viii) withdrawal application. Consultancy services and technical assistance would be eligible for 100 percent Bank financing excluding taxes. Further, the government is to establish and maintain a special account, for an amount of US$10 million, at BNER_. Disbursements against statements of expenditure would be allowed for goods and consulting services under contracts not exceeding US$1 million. Replenishment applications would be submitted at monthly intervals. 37. Withdrawal applications for amounts above US$2 million would be submitted directly to the Bank by the Ministry of Finance assisted by the procurement agency. Payments for amounts below US$2 million would be made from the government's special account to be opened at BNR (para. 36). Checks would be signed by the Minister of Finance or an authorized representative. Requests for replenishment of the special account would be submitted by the Ministry of Finance, assisted by the procurement agency, on the basis of statements of expenditures, including bank reconciliation statements. Supporting documentation would be kept locally, to enable supervision by Bank staff in the field and by auditors acceptable to the Bank. BNR would provide quarLerly progress reports of procurement and disbursement activities to the Bank. 38. Retroactive financing. Retroactive financing up to an aggregate amount of US$10 million would be acceptable for eligible imports paid for during the four-month period preceding credit signing. No contracts below US$5,000 -- except for consultancy services and technical assistance -- would be eligible for financing under the proposed credit. 39. Audits. Immediately after credit effectiveness, the government will select an independent auditor to conduct a financial and technical audit of all transactions under the project, with terms of reference acceptable to the Bank. The audit would be carried out quarterly and at the time of project completion, i.e. twelve months after credit effectiveness. Auditors' opinion and reports satisfactory to the Bank on such statements would be required to be provided after each audit.  15 40. Reporting and Monitoring. On the basis of monthly and quarterly reports to be prepared by the procurement agency, the Ministry of Finance will prepare a quarterly report on the execution of the ERP, which would be submitted to the Bank. Essentially a status update, the report would cover procurement and disbursement, arrival and distribution of supplies, and the progress of reconstruction activities. The report would also identify any issues in need of resolution by the Minister of Finance, the Bank or other donors. An Implementation Completion Report will be prepared by the government with the assistance of the procurement agency, within three months of credit closing. 41. Supervision. Apart from ongoing monitoring by the Bank's resident mission in Rwanda, supervision of the ERC will be conducted under the joint responsibility of the task managers of the ERC and the relevant sectoral operations. While the procurement agency would provide procurement services required under the ongoing IDA credits, supervision will remain the responsibility of the individual Bank task managers. A start-up mission is planned for March 1995, to consist of the task manager and specialists from the social sectors, infrastructure, agriculture, procurement and private sector" participating donors would also be invited to take part. A mid-term review would take place in August 1995. F. ESTIMATED PROGRAM COSTS AND FINANCING PLAN 42. Financing plan. As seen in the table below, the total estimated cost of the ERP in 1995 is US$200 million,' to be expended over a 12-month period beginning in February / March 1995. Base costs are expressed in end-1994 prices; program costs are shown net of taxes. The proposed ERC would finance US$50 million (25 percent) of total cost. An additional US$25 million would be reallocated from ongoing IDA projects, of which US$21.5 million (10.8 percent of total cost) has already been identified. Another US$25 million is expected to be made available from ongoing projects financed by other donors. Remaining financing needs of US$100 million would be met by other donor contributions, including firm commitments of US$81 million from the EU and smaller amounts from the African Development Bank (ADB), Belgium, Canada, Germany, the Netherlands, Switzerland, UNDP and the United States. As mentioned earlier, donor commitments will be more firmly established during the January 1995 Round Table for Rwanda (see para 14). Its equivalent in Rwanda Francs would be R1`44 billion at the parallel market exchange rate or RF27 million at the official rate.  16 Table 2 Emergency Recovery Program (ERP) Financing Plan for 1995 Amount Percent (US$ millions) IDA: Emergency Recovery Credit 50.0 25.0 Project Restructuring 25.0 12.5 Subtotal 75.0 37.5 Other donors 2: Emergency support 100.0 50.0 Project restructuring 25.0 12.5 Subtotal 125.0 62.5 TOTAL 200.0 100.0 G. AGREED ACTIONS 43. Management of procurement and contract administration will be delegated to a procurement agency, to be recruited competitively based on a list of international agencies specialized in general procurement and contracting (see para. 30). The recruitment of this agency will be a condition of credit effectiveness. Pre-shipment inspection will be necessary for all imports under the credit. The Emergency Recovery Program will be an integral part of the 1995 budget that is being prepared in close consultation with the IMF, the Bank and other donors. 2 Other donors incltude the Africai l)evelopment 13ank, Belgium, Canada, the Eluropean Union, Germany, , the Nethcrlands, Norvav, Switzerland, IJNI)P and the tJnitcd States Othcr donor firm commitments to date amounit to IJS 81 million, from the l.uropean tJnioii. the remainder are to be firmed up at a government/lJNl)P rounld tablc meeting scheduled for January 18-1 9, 1995.  Annex 1 Page I of 7 Restructuring of IDA Projects Introduction 1. Under the overall emergency reconstruction effort for Rwanda, the Bank will restructure its portfolio so that ongoing operations respond more effectively to the changing needs of the country. The restructuring process began with a series of missions to Rwanda in September, and November-December 1994, which examined the relevance of projects to the new economic and social situation and the current weakened local capacity to implement projects effectively. These missions prepared specific restructuring proposals for 50% of projects. Subsequent missions beginning in January 1995 will complete this process. Project restructuring, whose objectives are to support the resumption of private sector activities and to re-establish basic services, will be designed in close consultation/collaboration with the other donors who will also be restructuring their own portfolio. 2. IDA's portfolio in Rwanda consists of 11 active operations for a total amount of $199.5 million of which $167.26 million remains undisbursed as of November 30, 1994 (see Table 1).' Two projects (Water Supply Project Cr. 1783 and the Transport Sector Project Cr.2163) are co-financed with an undisbursed amount of 14.7 million equivalent. In the restructuring of on-going projects, nine projects have been identified in the agriculture, industry and energy, infrastructure, social and economic management sectors to reallocate US$21.5 million to finance activities under the emergency recovery program. Table 2 lists the projects and summarizes how reallocated resources will be used. 3. The procurement of goods and the management of consultant and technical assistance contracts for all IDA projects would be undertaken by the Executing Agency set up in the Ministry of Finance, in order to overcome the lack of project implementation capacity in the country. As a result of the sharp reduction of government revenue due to the civil war, the government will not have the resources to ensure the local counterpart funding. IDA would, therefore, increase its share of project financing to 100%. The difference in project data included in Annex I Table I and Schedule C of the MOP is due to the fact that Schedule C includes SAC I and Highways VI credit which close on December 31, 1994 and the Agriculture Research II Credit which will be canceled in FY95.  Annex I I'age 2 of 7 Proposed Project Restructuring 4. Private sector. The Private Sector Development Project (Cr.-2541, not yet effective, Closing Date 06.30.99; Undisbursed US$12.7 million) will be instrumental in reactivating the private sector. The project comprises three components, (a) an APEX line of credit for productive investments; (b) a private sector support fund; and (c) support for institutional strengthening to various ministries and participating financial intermediaries. Restructuring would entail making the line of credit easier to use by: (a) developing a procedures manual for demands for investment credits and working capital; and (b) establishing a specialized unit in those participating financial institutions to help speed up the private sector's access to credit. A procedures manual for the Private Sector Support Fund will be established and training needs of the private sector and professionals in the Ministry of Commerce will be determined. If necessary, funds will be reallocated among the three components. An amount of US$3.0 million will be used to support the ERP under component (a) and (b). 5. Social sector. The Food Security and Social Action Project (Cr.-2388, Effective 08.05.93; Closing Date 12.31.97 Undisbursed $17.7 million) aims to: (a) improve the food security and social welfare of the poorest population groups; (b) improve the Government's ability to monitor the living standards of the population; and (c) initiate a long-term poverty alleviation strategy. The project objectives will remain the same. Given the current institutional situation, the household survey and the food-for works components cannot be implemented. Project components will be re-designed to finance accelerated actions targeted towards the country's poorest population segments. 6. The restructured project will have two components: The Food Aid and Nutrition Component will aim to reduce food insecurity and malnutrition. It will target children, pregnant and lactating mothers, AIDS-afflicted households and the country's growing number of orphans. The Emergency Social Fund will finance the rehabilitation of social infrastructure destroyed by the war (nutrition and health centers, schools, communal water supply schemes). Proposals will be made mainly by NGOs (in collaboration with the communities) and will be approved and financed based on a set of defined criteria. It is anticipated that at least 50 per cent of the costs of these works will be labor costs. A manual of procedures will be finalized in February 1995 defining selection criteria for sub-projects, the role of all concerned parties, the management structure of the Social Fund and the internal control mechanisms. The financing of individual sub-projects will begin in March 1995. The restructured project will contribut about US$3 million to the ERP. 7. The objective of the Education Sector Project (Cr.-2227; Effective 06.24.92; Closing Date 09.30.96, Undisbursed $22.3 million) is to: (a) consolidate and expand primary education; (b) improve the overall quality of education, and (c) strengthen the sector's management capacity. Given the damage suffered by  Annex I Page 3 of 7 the sector during the civil war, the project will focus on: (a) the rehabilitation, equipping and purchase of textbooks for primary schools; (b) basic training of school teachers; (c) elaboration of curricula; and (d) strengthening of key directorates in the Ministry of Education. A project unit will be recruited to assist in getting the project's components off the ground, since the Ministry is in dire need of qualified staff. A programming mission will visit Rwanda in January 1995 to define and agree on the work program for the first year of the restructured project's implementation. The project will reallocate US$3.0 million to the ERP to finance activities under component (a). 8. The First Population Project (Cr.-2272: Effective 06.04.92; Closing Date 06.30.98; Undisbursed $19.7 million) was restructured in 1993 and placed under the responsibility of the Ministry of Health. The project's objectives, which are still valid, comprise: (a) a reduction of the fecundity rate; (b) lower maternal and child mortality due to short time spaces between births and other factors such as age of the mother; and (c) integration of demographic issues and family planning into socio-economic development. To attain these objectives, the restructured project will: (a) rehabilitate and equip selected health centers which will implement family planning programs; (b) train health workers and trainers in family planning; (c) supply contraceptives and some essential drugs; (d) provide technical assistance; and (e) support the development of an IEC campaign. An amount of $3.0 will be reallocated from components (a), (b) and (c) to finance activities under the emergency recovery program. 9. A project implementation unit, reporting directly to the Minister of Health will be set up with the responsibility to ensure all technical aspects of the project, the budgeting and financial management of the project, coordination of the different health regions' activities, and to monitor training activities. The project unit will include a specialist in procurement to help in the purchase of drugs and contraceptives and the repair of infrastructure. 10. Macroeconomic management. The Sectoral and Pre-investment Studies Project (Cr.-1796 Effective 08.18.88; Closing Date 12.31.96; Undisbursed $6.0 million) seeks to improve local capabilities for the preparation and appraisal of investment projects and investment programming, through the provision of funds for studies, training and technical assistance. The closing date of this credit will be extended for one year. The project activities will focus on priority needs for building capacity in the reconstruction effort. A total of $1.0 million will be made available to the ERP to fund studies on resettlement and an assessment of the current economic and financial situation which will make recommendations for an action plan to rehabilitate industrial and trading activities. 11. Agriculture. The Agriculture Services Project (Cr.-2026 Effective 06.15.90; Closing Date 06.30.95 Undisbursed $13.7 million) was set up to strengthen the country's research and extension services. In the current context,  Annex I Page 4 of 7 with 90 percent of extension workers not in the field as well as the massive displacement of farmers, the ability of the project to attain its objectives has been compromised. The project will be restructured to focus on (a) the rehabilitation of export crops; (b) strengthening seed production; (c) promoting the private marketing of agricultural inputs and produce; and (d) rebuilding institutional capacity to plan and coordinate activities in the sector and the framework for extension services. A mission in January 1995 will recommend a specific action plan. The project will contribute $2.0 million to the ERP to finance activities related to seed production and capacity building. The project will be extended. 12. The Agriculture Research II Project (Cr.-2547; Closing Date 03.31.99; Undisbursed $15.9 million) aims to improve the relevance, quality and accountability of the agricultural research program. Although the long-term objectives of the project are valid, their achievement in the current situation is not feasible. This project will be canceled. 13. Energy. The Energy Sector Project (Cr.-2456, Effective 01.21.94; Closing Date 12.31.98 Undisbursed $25.4 million) aims to promote rational energy policies and to establish the basis for efficient utilization of Rwanda's energy resources. Damage to the sector's assets, the loss of capable trained personnel and the need to improve coordination among donors in rehabilitating the sector call for a revision of project priorities. The restructuring of the project will be done in close collaboration with participating co-financiers to ensure a well coordinated reallocation of funds; to this end, the Bank organized a donors' meeting in Paris in November 1994. Approximately, $1.0 million will be reallocated from the project to the ERP to finance make-ready costs needed for Electrogaz to contract out selected private sector operators. 14. Public Sector. The Public Enterprise Reform Project (Cr.-2113; Effective 02.28.91; Closing Date 12.31.95; Undisbursed $3.4 million) supports the government's program to increase the efficiency of public enterprises through their restructuring and privatization. The project was substantially restructured in 1993. Given the impact of the war on state-owned enterprises, an action plan will be developed to liquidate some of them and quickly privatize as many of the remaining as possible. Technical assistance to support execution of the action plan will be reassessed. 15. The Second Communications Project (Cr.-2189; Effective 08.19.91; Closing Date 12.31.95; Undisbursed $8.4 million) promotes efficient communications through institutional reform and some modest investments. It seeks to create autonomous, commercially-oriented operating entities for the telecommunications and postal services. The project will go ahead with the planned privatization of telecommunications services as the private operator is willing to go back to Rwanda. The implementation plans for the postal services will have to be reexamined.  Annex I Page 5 of 7 16. Infrastructure. The objectives of the Transport Sector Project (Cr.-2136; Effective 03.29.91; Closing Date 06.30.97; Undisbursed $34.0 million) are to: (a) reform sector policies to promote competition and liberalize prices; (b) develop the planning capacity of the government; (c) improve road maintenance ability; and (d) promote private sector activity in road maintenance. The project supports main road construction, improved road maintenance and promotion of communal activities. Some of the roads originally selected to be built or repaired are no longer a priority, while the capacity to implement the project has been seriously undermined. The construction of docks on Lake Kivu and the boat construction site as well as the vehicle inspection center will be canceled. 17. The decision on how to restructure the project will depend to a large extent on whether or not the construction of the route between Gitarama and Kibuye, which is 25% completed, will be continued. Currently, the Ministry of Public Works is studying the extent to which the project is economically justifiable, given that the company building the road suffered large damages during the war and is now requesting compensation. Before re-activating the project, the Government of Rwanda, will formally agree not to purchase road maintenance equipment for the Ministry of Public Works. The Ministry will limit its role to one of planning, managing contracts and quality control of contracted-out services. Existing equipment will be sold to the private sector which will be contracted for road services. Funds of up to $5.0 million from the project will be reallocated to finance priority repair of secondary rural roads under the ERP. 18. The Water Supply Project (Cr.-1783; Effective 10.31.88; Closing Date 12.31.94; Undisbursed $3.8 million) objectives are to improve the quality and quantity of portable water in rural areas, sensitize and make rural communities responsible for the maintenance of water installations and help the Government put in place the institutional and financial framework to coordinate the various international donors. In collaboration with international donors the project will be restructured to: (a) complete repairs to water supply systems identified under the ERP; (b) repair the water source form the Yanze river (water supply for Kigali); (c) finance an evaluation of the water needs in secondary cities; and (d) finance a rehabilitation study for simple and complex rural water supply systems. Ida will reallocate about US$0.5 million to the ERP from this credit to support activities under (a) and (d). The closing date for this project will be extended for one year.  TABLE 1 IDA PROJECTS PORTFOLIO (FY95) FOR RWANDA (AS OF DECEMBER 31,1994) ORIGINAL CUMULATIVE UNDISBURSED CREDIT BOARD EFFECTIVE- AMOUNT DISBURSEMENT AMOUNT CLOSING NUMBER PROJECT NAME DATE SIGNING NESS DATE US$ MiHion US$ Milion USS Million DATE Country Operations 1796 Sectoral & Pre-investment Studies 05114/87 06/24/87 08V18/88 7.40 2.41 6.04 12/31/96 (R) Aarkculture 2026 Agricultural Services II 5/30/89 9/13/89 6/15/90 19.90 8.49 13.71 6/30/95 Industry and Energy 2456 Energy Sector 02/09/93 04/21/93 01/21/94 26.00 1.48 25.44 12/31/98 1890 Communications II 12V11/90 01/30/91 08/19/91 12.80 4.31 8.45 12/31/95 2113 Public Enterprise Reform 03/27/90 05/07/90 02/28/91 4.40 1.54 3.37 12/31/95 (R) 2541 Private Sector Development 09/09/93 11/18/93 11/18/94 12.00 0.00 12.70 06/30/99 Subtotal 55.20 7.33 49.96 Infrastructure 1783 Water Supply II 04/28/87 08/14/87 10/31188 15.00 12.49 3.85 12/31/94 2136 Transport Sector 05/22/90 08/31/90 03129/91 40.00 10.94 33.97 06/30/97 Subtotal 55.00 23.43 37.82 Population/Health 2272 Population 06/19/91 07/03/91 06/04/92 19.60 1.42 19.70 06130198 2227 Education Sector 04/09/91 06/27/91 06/24/92 23.30 1.26 22.34 09/30/96 2388 Food Sec. & Social Act. 06/17/92 08/12/92 08/W93 19.10 2.62 17.69 12/31/97 Subtotal 62.00 5.30 59.73 TOTAL 199.50 46.96 167.26 The difference in this table and Schedule C of the MOP is due to the fact that Schedule C includes SAL I and Higways VI which closed on December 31, 1994 and the Agriculture Research II Credi which will be cancelled in FY95. tD X 00  TABLE 2 RWANDA EMERGENCY RECOVERY PROGRAM REALLOCATION OF EXISTING IDA CREDITS CREDIT UNDISBURSED REALLOCATED CREDIT AMOUNT AMOUNT ' CLOSING PROPOSED AMOUNT NUMBER PROJECT NAME USS Million USS Million DATE USE USS Million Country Operations 1796 Sectoral and Pre-investment Studies 7.40 6.04 12131/96 (R) Studies related to land use and reseltlement; and to 1.00 Private Sector Assessment Aarlculture 2026 Agricuhural Services II 19.9 13.71 6/30/95 Rehabilitation of seed control laboratories, support for seed 2.00 muliplication and plant protection activities Industry and Enerav 2456 Energy Sector 26.00 25.44 12/31/98 Rehabilitalion of supply centers 1.00 2541 Private Sector 12.00 12.70 6/30/09 Putting in place APEX line of credit 3.00 Infrastructure 1783 Water Supply ll 15.00 3.85 12/31/94 Repair of rural water systems 0.50 2136 Transport Sector 40.00 33.97 06/30/97 Repair of some secondary rural roads 5.00 Population/Health 2272 Population 19.60 19.70 06/30/98 Reconstructing selected health centers, training of health 3.00 workers and purchase of drugs, equipment and furniture 2227 Education Sector 23.30 22.34 09/31196 Rehabilitation of selected primary schools and provision 3.00 of school supplies 2388 Food Sec. & Social Act. 19.10 17.69 12/31/97 Nutritional supplements for vulnerable groups and the rehabi- 3.00 Idtation of social infrastructure through an Emergency Social Fund. TOTAL 182.30 155.44 21.50 LOA data of November 30, 1994 (undisbursed amounts may be less due to existing commitments) lb rJQ 0 (D m 0   TABLE 1 RWANDA INDICATIVE TECHNICAL ASSISTANCE 1/ Material and Logistic Indicative Starting Area Type Support Probable Donor Date I. Agriculture 1. Establishment of Food One Resident Expert Two 4 x 4 vehicles FAO/USAID Feb-95 Security Monitoring (6 months) Three motorcycles Two Local consultants Office equipment (6 months each) 2. Rehabilitation of One resident expert One 4 x 4 vehicle World Bank/FAO 1995 MINAGRI and (four months) Laboratory equipment Seed control quality Office equipment laboratory 3. Rapid Multiplication of cassava One Resident Expert Two 4 x 4 vehicles, World Bank/FAO Feb-95 and sweet potato stump and (9 months) One computer bean seeds 4. Assessment of phytosantory One Resident Expert One 4 x 4 vehicle FAO/USAID Feb-95 conditions and disease diagnosis (6 months) Provision of chemicals Switzerland x o - co)  TABLE 1 RWANDA INDICATIVE TECHNICAL ASSISTANCE 11 Material and Logistic Indicative Starting Area Type Support Probable Donor Date 5. Assistance to breeding of livestock Three Experts Three 4 x 4 vehicles FAO/USAID/ Feb-95 (2 months each) Provision of vaccines and Switzerland/ other prophylactic drugs EU 6. Assistance to animal protection Two Resident Experts Two 4 x 4 vehicles FAO/EU Feb-95 and disease control (12 months each) Laboratory equipment, cold storage facilities, vaccines and drugs II. Environment 1. Evaluation of damage to fauna One Resident Expert Three 4 x 4 vehicles World Bank/ Jan-95 and eco-systems (6 months) One computer; Atlas software Switzerland Four local consultants (3 months each) 2. Training for local population Three local consultants Office equipment, one computer World Bank/ Feb-95 participation in environmental (3 months each) and three tape recorders Switzerland protection EU 3. Preparation of donors roundtable Two consultants Office equipment, one computer, World Bank/ Jan-95 meeting to plan and fund emergency (2 months each) one fax machine Switzerland/ environmental damage control/ One secretary USAID rehabilitation program (2 months) OQ X x 0  TABLE I RWANDA INDICATIVE TECHNICAL ASSISTANCE 1/ Material and Logistic Indicative Starting Area Type Support Probable Donor Date Ill. Health 1. Training program for medical and Three experts Medical equipment and supplies WHO/UNICEF Jan-95 paramedic personnel (three months each) 2. Reorganization of health system Three experts UNESCO/ Jan-95 (three months each) UNICEF IV. Education 1. Short-term pedagogical training for 136 pedagogues Five 4 x 4 vehicles, pedagogical UNESCO/ Jan-95 primary school teachers (three months each) materials, audiovisual equipment UNICEF 2. Training program for secondary school Ten experts One 4 x 4 vehicle, audiovisual UNESCO/ Jan-95 teachers (three months each) equipment, 10 computers UNICEF V. Infrastructure 1. Roads and Bridges-Evaluation Five experts Five 4 x 4 vehicles, topographical EU (EDF) Feb-95 of damages and supervision of works (3 months each) and mathematical instruments UNDP office equipment, 2 computers 2. Water and sanitation--Evaluation of Three experts Three 4 x 4 vehicles, technical EU (EDF) Feb-95 damages and supervision of works (3 months each) equipment, office equipment UNDP one computer 0t1 0 a',  TABLE 1 RWANDA INDICATIVE TECHNICAL ASSISTANCE 1/ Material and Logistic Indicative Starting Area Type Support Probable Donor Date 3. Evaluation of damages to public Three experts One car, office and technical EU (EDF) Feb-95 buildings. Supervision of works (3 months each) equipment, one computer Germany UNDP VI Private Sector 1. Financial and investment advise Five experts Two cars, audio visual World Bank Feb-95 (two weeks each) equipment, one computer (IFC) 2. Trade expansion and regional trade Three experts opportunities (two weeks each) One car, two computers GATT/UNCTAD Mar-95 3. Export diversification opportunities Two experts GATT/UNCTAD Mar-95 (two weeks each) 1/ Source: Bank appraisal mission e > XQ D (D X x 0 0"  Annex 2 Page 5 of 6 RWANDA IMF Indicative Macro-economic Management Technical Assistance Program' Material and Probable Indicative Area of TA Type of TA Logistic Donor Date of TA Support2 1. Public Finances 1. Customs 1. Resident expert Car, computer, UNDP February 1955 Administration (3-6 months) accommodation, 2. Mission (2 experts, family visit UNDS 2 weeks March 1995 2. Tax 1. Diagnostic mission UNDP Ongoing Administration (I expert, I month) 2. Diagnostic mission (2 experts, 2 weeks) IMF (FAD) January 1995 3. Resident expert (3-6 months) Car, computer, IM (FAD) February-March accommodation, 1995 famiily visit 3. Budget 1. Resident expert Car, computer, US AID, February 1995 Directorate (3 months) accommodation World Bank 2. Diagnostic mission US AID, April-May, 1995 (I expert, 2 weeks) World Bank 4. Expenditure 1. Diagnostic mission IMF (FAD) January 1995 control (I expert, 2 weeks) 2. Resident expert (3 months) Car, computer, IMF (FAD), February-March accommodation World Bank 1995 5. Treasury/ 1. Resident expert Car, computer, US AID, February 1995 Accounting (3 months) accomnmodation World Bank 6. Public 1. REsident expert Car, computer, World Bank January 1995 Enterprises (3 months) accommodation II. National Bank of Rwanda (NBR) 'Source: Fund/Bank October 1994 mnission. 2Excluding salaries, it is assumed that these will be provided by the respective donors.  Annex 2 Page 6 of 6 1. Senior Advisor 1. Resident expert Car, computer, IMF/ January 1995 (3-6 months) accommodation, family Belgium visit 2. Research 1. Diagnostic mission STA January 1995 Department (2 experts, 2 weeks) 2. Resident expert in Car, computer, IMF/ February 1995 statistics and accommodation, Belgium research family visit (3-6 months 3. Foreign Resident expert for Car, computer, IMF/ February 1995 Exchange forex (3-6 months) accommodation Belgium Operations family visit 4. Bank Resident expert Car, computer, IMF/ February, 1995 Supervision (3-6 months) accommodation, family Belgium visit 5. Cash Resident expert Car, computer, Belgium February-March 1995 Management (6 months) accommodation, family visit III. Facilitating Resident expert Car, computer, World Bank February 1995 Disbursement (6 months) accommodation, family of Donor visit Assistance IV. 1. AFR mission AFR January-February, 1995 Macroeconomic (3 experts, 2 weeks) Programming and Policy Advice 2. AFR mission AFR (3 experts, 2 weeks) V. Price Expert (I month) Computer, UN Statistical March-April 1995 Statistics accommodation Office Germany VI. National Resident expert (6 Car, computer, UN Statistical March-April 1995 Accounts months) accommodation, family Office Germany visit I _I VII. Training Belgium February-March, 1995  Annex 3 Page 1 of 2 ANNEX 3 Positive List of Imports to be financed under the Credit' H.S. Code 01.02 - 01.06 Live animals for breeding 12.09 - 12.14 Seed grains and fruits and spores for planting 15.05 - 15.20 Oil and chemical oil products 17.01 - 17.02 Sugar and industrial glucoses 27.12 - 27.14 Petroleum coke, natural and other asphalts, industrial petroleum jelly and paraffin 28.01 - 28.43 Inorganic chemical products 29.01 - 29.06 Hydrocarbons and derivatives 30.03 - 30.06 Pharmaceuticals, medicines 31.01 - 31.05 Fertilizers 32.15 - Inks and toners 33.01 - Basic oils 34.04 - 34.06 Artificial wax, powders and candles 38.01 - 38.08 Chemical products, insecticides, herbicides, fungicides 39.01 - 39.26 Plastic and cellulose products 40.01 - 40.17 Rubber products (including pipes and cables, tyres and surgical products) 44.01 - 44.21 Wood and wood products 47.01 - 47.07 Wood pulp, cellulose fibres and paper and carton refuse 40.01 - 48.21 Paper and paper products 49.01 - 49.06 Books, textbooks, engineering and architectural drawing materials 52.01 - 53.08 Cotton and jute fibres and textiles 54.01 - 58. 11 Synthetic fibres and textiles 69.01 - 69.10 Ceramic products (including construction bricks, tiles, pipes, etc.) 70.01 - 70.07 Glass and glass products 72.01 - 73.26 Iron and steel products 74.01 - 74.19 Copper and copper product 75.01 - 75.08 Nickel and nickel products 76.01 - 76.16 Aluminium and aluminium products 78.01 - 78.06 Lead and lead products 79.01 - 79.07 Zinc and zinc products I Description according to the Rwanda Harmonized System Customs Code. Products here described and those contained under the four-digit category are considered eligible to be fimanced by the credit.  Annex 3 Page 2 of 2 82.01 - 82.15 Metal tools and instruments 84.05 - 84.85 Motors and electrical machinery (gas generators, turbines, pumps, etc.) 85.01 - 85.05 Motors and electrical machinery (power generators, transformers, bobbins, etc.) 85.17 - 85.27 Telephones and radiophone equipment 87.01 - 87.16 Motor cars, tractors, cycles, and other vehicles (including parts) 88.05 - 88.07 Aeronautical and meteorological equipment 90.01 - 90.09 Photocopiers, printers 90.15 - 90.17 Topographical, geodesical and mathematical instruments 90.18 - 90.26 Medical instruments 90.28 - 90.29 Gas, liquid or electrical meters 94.01 - 94.02 Medical and surgical furniture 94.06 Prefabricated contructions 96.01 - 96.13 Office equipment