Guinea - Conakry Urban Development Project

Document of The World Bank FOR OFFICIAL USE ONLY FILE CPY Report No. 4777-GUI STAFF APPRAISAL REPORT REVOLUTIONARY PEOPLE'S REPUBLIC OF GUINEA CONAKRY URBAN DEVELOPMENT PROJECT April 12, 1984 Urban Division Western Africa Projects Department 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 G GSY 23.00 GSY 1.00 = US$0.043 FISCAL YEAR January 1 - December 31 MEASURES 1 kilometer (km) 0.62 mile 1 meter (m) 3 5.28 feet 1 millimueter (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) ABBREVIATIONS AND ACRONYMS CGR = Commissariat General of Revolution (Commissariat G&neral a la Revolution) CPPE Conakry Municipality (Commune Populaire de Plein Exercice) EEC = European Economic Community MCHIJD = Ministry of Construction, Housing, Urban Planning and Domain (Ministere de la Construction, de 1'Habitat, de l'Urbanisme et des Domaines) PRL = Local Revolutionary Power (Pouvoir R6volutionnaire Local) 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 STAFF APPRAISAL REPORT TABLE OF CONTENTS Page No. CREDIT AND PROJECT SUMMARY ........................... . iv-vi I. SECTORAL BACKGROUND ..................................... . A. The National Economic Context ..................... 1 B. The Urban Sector ........................... . ..... 1 C. Conakry ................................... 2 D. Sec-tor Policy and Institutions . .4 E. Bank Strategy and Project Rationale ................ 5 1. Bank Lending Program and Other Donors. 6 2. Project Rationale . II. PROJECT BENEFICIARIES ..................................... 7 A. General Institutional Framework . . 7 B. The Ministry of Construction, Housing, Urban Planning and Domain (MCHUD) ............ 8 C. The Conakry Administrative Region (RAC) . .10 III. THE PROJECT ............. .... ....... ......, 12 A. Objectives and Main Project Features . . .12 B. Sammary Project Cost Estimates . . . 13 Financing Plan and Funds Flow ...16 D. Detailed Project Description ... 16 1. Urban Development and Planning . 16 2. Urban Service Management . .18 3. Drainage Infrastructure Works 20 E. Operating Cost Support . . ......................... 20 IV. MANAGEMENT AND IMPLEMENTATION ............................ 22 A. Implementing Agencies and Project Management .22 1. Project Coordination ..... 22 2. Technical Assistance: Role and Responsibilities . .22 3. Urban Development Planning . .24 4. Urban Service Management . .................... 25 This project is based on the findings of an appraisal mission which visited Guinea in April/May 1983. Mission members included Messrs. Felix A. Jakob, Paul Blanchet (WAPUR), Victor Chomentowski, Jean-Michel Henry (CONS), and Ms. Suzanne Snell (WAPUR). The report was typed by Ms. Katharine Knutsen and Mrs. Christiane Eliopoulos. Assistance in the preparation of statistical annexes was given by Ms. Anita Artaza (WAPUR). 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.  Table of Contents (Cont'd) Page No. B. Implementation ..... ........... . . . ......... . 26 C. Procuremen' o....................... 27 D. Disbursements . .... ................. 28 E. Supervision and Monitoring . .29 F. Special Accounts . 29 G. Accounts and Audits ............................. 30 V. REGIONAL AND MUNICIPAL FINANCE . .................... o 30 A. Local Government Finance ...................... 30 B. Cost Allocation... . ......... . 32 C. Project Impact. 34 D. Medium-term Urban Management Action Plan . .34 Vr. PROJECT JUSTIFICATION, ECONOMIC ANALYSIS AND PROJECT RISKS. *o ............. ..... 36 A. Project Justification ..................... .o 36 B. Economic Analysis .. .. . .... ..... . .37 C. Distribution of Benefits . .39 D. Project Risks . 40 VII. AGREEMENTS AND RECOMMENDATIONS ...... 40 AbNNEXES 1-1 City Size and Distribution in Guinea 1-2 Conakry Population, Areas, Densities, Income 3-1 Detailed Cost Tables 3-2 Technical Assistance to MCHUD: Terms of Reference 3-3 Technical Assistance to RAC: Terms of Reference 3-4 Existing RAC and CPPE Equipment 4-1 Project Implementation Schedule 4-2 Schedule of Disbursements 5-1 RAC Budget Estimates 1982-1990 with and without Project 5-2 CPPE I, II, III Budget Estimates 1982-1990 with and without Project MAPS IBRD 17025 : Guinea : Relief and Roads IBRD 17422/23 : Conakry: Project Components IBRD 17436/41 Conakry: Population Distribution and Density  - iii - GUINEA CONAKRY URBAN DEVELOPMENT PROJECT A. Selected Documents and Dates available in Project File (DOC # 129714) Al Project UNDP GUI 79/006: Amrelioration des conditions d'habitat a Conakry/Etude de Factibilite - Planification Urbaine; URBAPLAN, October 1982. (DOC # 129714 Al) A2 Project UNDP GUI 79/006: Amelioration des conditions d'habitat a Conakry/Etude de Factibilite - Services Municipaux; URBAPLAN, October 1982. (DOC # 129714 A2) A3 Identification d'un programme de travaux de drainage; P. Kohler, October 1982. (DOC # 129714 A3) A4 Mission de pre4valuation: Rapport sur aspects institutionnels; B. Tagournet, November 1982. (DOC # 129714 A4) A5 Etude des services topographiques; A. Lamotte, February 1983. (DOC # 139714 A5) A6 Etude sur la mise en place d'un organisme d'amenagement de terrains urbains; G. Bernard, February 1983. (DOC # 129714 A6) A7 Diagnostic financier et previsions budgetaires des collectivites locales de la Region Administrative de Conakry; V. Chomentowski, May 1983. (DOC # 129714 A7) A8 Rapport d'evaluation de composantes techniques; M. Henry, May 1983. (DOC # 129714 A8) A9 Working Papers: Urban Service Management Component; P. Blanchet, August 1983. (Doc # 129714 A9) AIO Working Papers: Unite de planification urbaine: Programme de Travail; F.A. Jakob, July 1983. (Doc # 129714 A10) All Working Papers: Analyse preliminaire des finances municipales; S. Snell, February 1983. (Doc # 129714 All) A12 Project Monitoring and Evaluation Criteria (Doc # 129714 A12) B. Documents available in file of First Water and Sanitation Project (870-GUI) Bl Assainissement de Conakry - Ruissellement, Plan Directeur, COMTEC, 1981. (DOC # 121589 CC 1-5) B2 Projet d'adduction d'eau et d'assainissement de Conakry; Dossier d'appel d'offres: Drainage; COMTEC, December 1979. (DOC # 123969 C)  - iv - REVOLUTIONARY PEOPLE'S REPUBLIC OF GUINEA CONAKRY URBAN DEVELOPMENT PROJECT CREDIT AND PROJECT SUMTlvARY 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). 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 overall economic development objectives by strengthening key urban sector institutions and by introducing significant changes in the financial management procedures for urban services, especially with regard to the funding of the foreign exchange component of operating costs. As immediate benefits, creating technically and financially sound operating conditions for urban services will contribute to the improvement of living conditions of at least 60% 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. As a long-term benefit, the reduction of  - v - disorderly sprawl, through increased control over urban 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 city as an economic center therereby enabling it more effectively to provide vital support to the country's overall development. Project Risks: The potential risk that entrusting the responsibility for project management to existing institutions could affect the efficiency of implementation, is mitigated by the intense 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 personnel could weaken the project agency and compromise 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 novelty of the project funding approach, RAC, the main implementation agency, could be exposed to cashflow shortfalls. 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.  - vi - Estimated Project Costs: Foreign Local Total --- (US$ million)--- Urban Development Planning (Equipment and Technical Assistance) 2.4 a/ 0.5 2.9 Urban Service Management (Equipment, Works and Technical Assistance) 6.5 2.0 8.5 Drainage Infrastructure Works 1.1 0.4 1.5 TOTAL BASE COST 10.0 2.9 12.9 Contingencies - Physical 0.4 0.1 0.5 - Price 1.7 1.3 3.0 TOTAL PROJECT COST 12.1 4.3 16.4 Financing Plan % of Total Foreign Local Total Project Cost -----bUS$ millionT---