Guinea - Conakry Urban Development Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-37 12-GUI REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT OF SDR 10.1 MILLION TO THE REVOLUTIONARY PEOPLE'S REPUBLIC OF GUINEA FOR THE CONAKRY URBAN DEVELOPMENT PROJECT April 12, 1984 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Syli (GSY) US$1.00 = GSY 23.00 GSY 1.00 = US$0.043 SDR 1.00 = US$1.063 FISCAL YEAR January 1 - December 31 MEASURES 1 kilometer (ki) = 0.62 mile 1 meter (m) = 3.28 feet 1 millimeter (mm) = 0.039 inch 1 square kilometer (km2) = 0.39 square mile 1 hectare (ha) = 2.47 acre 1 square meter (m2) 10.76 square feet 1 metric ton (t) = 2,205 pounds (lb) 1 kilogram (kg) = 2.205 pounds (lb) ABRREVIATIONS AND ACRONYMS CPPE = Conakry Municipality (Commune Populaire de Plein Exercice) MCHUD = Ministry of Construction, Housing, Urban Planning and Domain (Ministere de la Construction, de l'Habitat, de l'Urbanisme et des Domaines) RAC = Conakry Administrative Region (Region Administrative de Conakry) UNCDF = United Nations Capital Development Fund UNCHS = United Nations Center for Human Settlements  FOR OFFICIAL USE ONLY REVOLUTIONARY PEOPLE'S REPUBLIC OF GUINEA CONAKRY URBAN DEVELOPMENT PROJECT CREDIT AND PROJECT SUMMARY Borrower: Revolutionary People's Republic of Guinea. Beneficiaries: The Ministry of Construction, Housing, Urban Planning and Domain (MCHUD); and the Conakry Administrative Region (RAC). Amount: SDR 10.1 million (US$10.7 million equivalent). Terms: Standard. Project Description: The proposed project will strengthen the operational capacity of Central and Local Government institutions responsible for urban development planning and urban service management in Conakry. To this effect, the project will fund: (i) technical assistance, training and provision of essential equipment to enhance MCHUD's and RAC's capacity to plan, coordinate and control urban development in the Greater Conakry area; (ii) technical assistance, training and provision of essential equipment to develop RAC's ability to perform adequate technical and financial management of basic urban services (stormwater drainage network maintenance, garbage collection and service vehicle maintenance); and (iii) rehabilitation of existing and construction of new stormwater drainage networks to improve city-wide environmental conditions. Project Benefits: The proposed project will contribute to Guinea's overa'l economic development objectives by strengthening key urban sector institutions and by introducing significant changes in the financial management procedures for urban services. As immediate benefits, creating technically and financially sound operating conditions for urban services will con- tribute to the improvement of living conditions of at least 60 percent of city residents. Construction of new and repair of existing stormwater drainage networks will help to ensure satisfactory transport conditions throughout the year in economically important downtown areas. Reorganization of garbage collection services will double the volume of daily collected waste. Introduction of a mechanism to assure availability of needed foreign exchange will substantially reduce waste of local resources in the form of idle local tax receipts. Project activities will provide a focus for other donor and private sector opportunities in the urban sector. 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.  - ii - As a long-term benefit, the reduction of disorderly sprawl, through increased. control over ulrban growth and improved coordination between authorities involved in urban development activities will contribute to improving the operation of public utilities. Both urban services and urban planning improvements will lay the ground work for increased efficiency of investment in infrastructure and services, and will improve the overall functioning of the ciLty as an economic center thereby enabling it more effectively to provide vital support to the country's overal:L development. Project Risks: The potential risk that entrusting the responsibility for project management to existing institutions miLght affect the efficiency of implementation, is mitigated by the use of technical assistance and on-the-job and course training for Guinean staff. The risk inherent in any project designed to promote institutional development that the departure of technical assistance persornel could weaken the project agency and comprcmise future project benefits, is offset by the keen interest in the urban sector shown by other international and. bilateral donors and thus the strong likelihood of continuing technical assistance and training programs in the years ahead. Due to the nove:Lty of the project funding approach, RAC, the main implementation agency, could be exposed to cashflow shortfal:Ls. This risk is mitigated by the availability of substantial surpluses in the CPPE budgets throughout the project period, as well as by the Government's strong commitment to the proposed reforms for urban service management.  Estimated Project Costs: Foreign Local Total