Madagascar - Antananarivo Urban Works

 ICRR 10322 Report Number : ICRR10322 ICR Review Operations Evaluation Department 1. Project Data : OEDID : OEDID: C2591 Project ID : P001583 Project Name : Antananarivo Urban Works Country : Madagascar Sector : Other Urban Development L/C Number : C2591 Partners involved : FAC Prepared by : Roy T. Gilbert, OEDST Reviewed by : Alice Galenson Group Manager : Gregory K. Ingram Date Posted : 06/22/1999 2. Project Objectives, Financing, Costs and Components : The project was approved in March 1994 and completed in June 1998, as scheduled. Objectives were to: (i) innovate and demonstrate the advantages of contracting out the management and maintenance of infrastructure works (rather than through government force account ); (ii) promote the development of small and medium scale construction and engineering enterprises (SMEs) thereby creating jobs through labor intensive technology; (iii) upgrade the urban infrastructure of the capital city Antananarivo; and (iv) strengthen the management capacity of the municipality . The main project component was the creation and strengthening of AGETIPA to contract out infrastructure works and management. Works include road improvement and rehabilitation of public areas . Information systems and campaigns to facilitate participation with final beneficiaries were at the center of the project's technical assistance activities, which also included feasiblity and sectoral studies related to project execution and training for SMEs . At implementation completion, total costs were estimated at US$ 24.1 million equivalent. An IDA Credit of US$18.7 million equivalent financed 77% of these costs, the MAT (Ministry of National and Regional Development ) a 21% share, and Antananarivo Municipality and the French Cooperation Fund a 1% share each. At appraisal total costs had been estimated at US$20.1 million. 3. Achievement of Relevant Objectives : The project successfully achieved its main objective of establishing AGETIPA, a major innovation in urban infrastructure provision and management for Madagascar . The project also succeeded in upgrading Antananarivo's urban infrastructure through rehabilitating more than 100 kilometers each of roads, sidewalks and drains, as well as other improvements such as pedestrian streets and markets . Good construction quality reflected a significant improvement upon earlier works. The project also led to an estimated 133,000 man-months of employment, but not mostly through the formation of small and medium sized firms as suppliers in the construction and consulting business, as intended, but rather through the expansion of two large firms --and their SME suppliers--that took 51.2% of the works business. Even so, SMEs in Antananarivo became better organized and, on average, devoted some 20% of their overall business to the AGETIPA . 4. Significant Achievements : The most important achievement was the successful creation and sustainable operation of AGETIPA itself . Government, the municipality and contractors, as key stakeholders, responded positively to the shift away from inefficient force account provision of infrastructure . The municipality, for instance, interfaced directly with service users through surveys, media campaigns and direc assistance to neighborhood committees . From the initial success of setting up AGETIPA, there is now interest in expanding the AGETIPA system to the whole country and in identifying other sources of funding than IDA for that purpose . 5. Significant Shortcomings : AGETIPA's procurement management can be improved, however, with stricter observance of Bank prior review requirements as laid down in the project operations manual . Project performance would have been even better, had there been more beneficiary participation in the infrastructure components with a clearer focus upon targeting the poor. Also, thorough and consistent economic analysis of project investments throughout implementation would have demonstrated unequivocally that relevant project objectives were achieved efficiently . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Satisfactory Satisfactory Institutional Dev .: Partial Substantial The ICR understates the significance of the change in the "rules of the game" of urban infrastructure provision, represented by the AGETIPA innovation, notwithstanding weak procurement management that is currently being strengthened. Sustainability : Uncertain Likely Support from key stakeholders --notably city mayors and contractors --is likely to ensure the continuity of AGETIPA, make it more bankable and in turn, likely to assist with infrastructure maintenance. Bank Performance : Highly Satisfactory Satisfactory Bank performance was good, but the highest rating is precluded by incomplete economic evaluation since appraisal, insufficient attention to poverty targeting in project design and the lack of a plan for future operation. Borrower Perf .: Satisfactory Satisfactory Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : 1. Major ID achievements, such as revamping urban infrastructure provision and provision through the AGETIPA, need to be consolidated through improving their bankability and access to funds . 2. Economic benefits of urban projects should be demonstrated through specific analyses, not simply assumed to exist. 8. Audit Recommended? Yes No Why? To learn more about the challenges and successes of the new institutional arrangement of infrastructure provision and management and update its current status . 9. Comments on Quality of ICR : Satisfactory for the most part, although the reader may suspect that the report understates the overall significance of the AGETIPA experience. Also, actual project cost and financing figures (Tables 7A and 7B) do not appear to be fully consistent. Finally, the ICR does not explicitly address the key issue of future operation : according to OP 10:55 (para 1) "an ICR is a milestone in the project cycle, marking the transition from implementation to the project's future operation."