Argentina - Flood Rehabilitation Project

 ICRR 10316 Report Number : ICRR10316 ICR Review Operations Evaluation Department 1. Project Data : OEDID: OEDID : L3521 Project ID : P006051 Project Name : Flood Rehabilitation Project Country : Argentina Sector : Other Urban Development L/C Number : L3521 Partners involved : Prepared by : Anna Amato, OEDST Reviewed by : Ronald S. Parker Group Manager : Gregory K. Ingram Date Posted : 06/02/1999 2. Project Objectives, Financing, Costs and Components : The project was designed as an emergency response to flooding generated by the 1991-92 El Niño phenomenon in Argentina, which caused US$905 million in economic losses and damaged seven provinces. Project objectives were to: (i) restore the service capacity of damaged infrastructure, and (ii) establish a sound institutional framework for the coordination and implementation of the overall government rehabilitation program. The loan was in the amount of US$170 million, US$2.8 million was canceled at loan closing. Final project cost: US$258.7 million (appraisal estimate: US$270 million). Components: Rehabilitation of (i) transport and power infrastructure, (ii) emergency flood control, drainage and water control works, and (iii) housing, education and health facilities. Additional components provided for (iv) technical assistance to improve the capacity of institutions responsible for flood forecasting and mitigation and (v) preparation of a follow-up project for future flood protection, and to finance an early flood warning system. 3. Achievement of Relevant Objectives : The project fully achieved its physical and institutional objectives, although with a three year delay. 4. Significant Achievements : Effective federal and provincial emergency agencies were established. Critical physical, economic and social infrastructure was rehabilitated. Drainage improvements withstood subsequent severe weather events including the 1997-98 El Niño. The internal economic rate of return is 35.1 percent based on estimated losses avoided. The quantity of solid waste being dumped in drainage canals was reduced, resulting in improved sanitary and health conditions and lower maintenance costs. Project efforts to increase public awareness of environmental sanitation and respect for the maintenance of flood protection structures were quite successful. A stronger sense of community identity has developed in the communities where new housing was built using the self-help construction methodology. 5. Significant Shortcomings : Lack of experience by provincial agencies in Bank procurement and administrative procedures resulted in a slow start. Additional initial delays were due to a bureaucratic approval process for subsidiary loan agreements with the provinces. In 1995, the national and provincial governments were constrained by the “Tequila