Algeria - Urban Natural Hazard Vulnerability Reduction Project

Report No. PID11180 Project Name Algeria Urban Natural Hazard Vulnerability (@) Reduction Project Region Middle East and North Africa (MENA) Sector Urban vulnerability Reduction; Drainage; Reforestation; Urban Housing; Other Environment Project ID: ALPE67605 Borrower Democratic People's Republic of Algeria (Republique Algerienne Democratique et Populaire) Executing Agency Ministry of Interior Implementing Agencies Wilaya of Algiers, DGPC (Direction Generale de la Protection Civile), ONM (Office National de la Meteorologie), ANRH (Agence Nationale de Ressource Hydrauliques), Contact address: Mr. Mohamed Smail Directeur de Cellule de Coordination et Suivi du Projet (CCSP) Le projet de reduction de la vulnerabilite urbaine de la Wilaya d'Alger aux catastrophes naturelles Wilaya of Algiers Boulevard Zirout Youcef Tel: (213) 21 72 54 60 Fax: (213) 21 73 62 29 Email: casbah-alger-m.smail@caramail.com Environmental Category B Date PID Prepared August 6, 2002 Tentative Projected Appraisal / Negotiations Date: June 15-23, 2002 Projected Board Date August 8, 2002 I. Country and Sector Background: With over 30 million people, the Democratic People's Republic of Algeria is the largest country in the Maghreb region. Rich deposits of oil, gas and minerals make it also one of the leaders in natural wealth. Up to the 1980s, Algeria boasted one of the best social and physical infrastructure in the region, extensive social protection, health, education and other services, and a large middle class. Economic decline and political instability, accompanied by civil strife in the past decade have eroded much of the existing infrastructure, and created new set of problems for the Government. The country's  significant exposure to recurring natural hazards (e.g., floods, earthquake, drought) emphasize the vulnerability of the population, especially the poor, and of the built environment to repeated social, financial and economic losses. By diverting financial resources from regular development to recovery and reconstruction, natural disasters are a serious threat to Government's effort to stabilize the country's economic and social situation. Sources of Vulnerability: Algerian urban environment, especially that of the capital Algiers, is characterized by rapid urbanization and environmental degradation. High urban densities, overcrowding in dwellings, inadequate housing finance markets and a system of social housing production, are all factors that influence the fast deterioration rate of the building stock. With the lack of, or inadequate maintenance of aged buildings in low-income neighborhoods (such as the disaster-affected Bab El Oued in Algiers) and social housing complexes, conditions are set in Algiers as well as other Algerian cities for inherent urban vulnerability. Poor or non-existent drainage, water supply, sanitation, sewer and solid waste disposal systems, further enhance the deterioration and destabilization of buildings and infrastructure. Deforestation, the elimination of vegetation cover due to uncontrolled and often illegal development has contributed to further erosion, thus increasing hazard exposure. Current urban planning system, particularly its land-use aspects needs to be improved. In addition, integration with environmental planning and enforcement of building codes and zoning regulation need to be strengthened. Algeria's urbanization rate grew from 31 percent in 1966, to reach a mark of 50 in 1993 and in 2000 approach 60 percent. Reportedly, the cities attracted rural population due to country-wide economic difficulties and on-going social strife. With over three million inhabitants residing in the Capital's three Wilayas, Algiers is the focal point of country's income revenue, and its social, cultural and political center. In addition to flash flooding, land-and mud-sliding, Algiers is also seismically-prone. If the anomalies of its urban development continue unchecked, the vulnerability of Algiers will continue to grow, jeopardizing the economic, social and cultural development of the whole of the country. Impacts of the Flood: On November 10, 2001, severe rains accompanied by floods and mud-flows affected fourteen Wilayas in the northern part of Algeria. The disaster caused the loss of about 800 lives, approximately 95 percent of which occurred in the capital of Algiers (specifically in the Oued Koriche catchment area). Damage and loss of property were considerable across sectors, amounting to about US$400 million (according to the Government sources). In addition to the unprecedented rains that in a short period of time pummeled a narrow gorge leading to the sea, the main factors that aggravated the damage of this disaster include massive (and often illegal) urban development, often coupled with sub-standard constructions. Huge masses of land got destabilized with the torrential rain, causing massive land slides. Carrying everything in their path, these voluminous deposits of mud and debris ended in the heavily built urban areas such as Bab El Oued of Algiers - a natural mouth of a creek into the sea. -2 -  The most seriously affected economic sector is housing, accounting for about 33 percent (or more than US$133 million) of total damage, followed by losses to the rain water sewage system, other public infrastructure such as roads, bridges, ports, social infrastructure (especially in the education sector) and agricultural facilities. Environmental impacts of the disaster are also significant, as they emphasized the ongoing process of barely checked environmental degradation (including deforestation and denuding the hillocks of their protective vegetation cover for urbanization purposes). As evidenced by the losses to the housing sector, social cost of the disaster is tremendous and cannot be fully calculated in financial terms, as it includes (in addition to the loss of shelter) loss of livelihoods. Especially affected are the low-income and informal participants in the urban economy, fragile families and extended support networks, resulting in the loss of productivity due to physical disability and importantly, loss of the traditional urban, commercial and social space. In December 2001, Algerian Government formulated an official request to the World Bank for assistance on rehabilitation and prevention works. Bank missions of December 2001 and in February 2002, visited most of the damaged sites in the Capital, and interacted both with the affected population and the government representatives. Jointly with the Algerian Government, the World Bank Team formulated an approach to the proposed operation. This includes strengthening the national capacity for overall disaster management, urban multi-hazardvulnerability in the Wilaya of Algiers (including re-housing of population occupying hazardous sites and buildings), and project management. Negotiations were held between June 15 and 23, 2002, in Algiers. II. Objectives: The main objectives of the proposed operation correspond to those expressed in the Government of Algeria's official request for Bank assistance and include: (a) reduction of urban vulnerability to natural hazards, including housing reconstruction in the priority areas, such as the Massif Bouzareah in the Wilaya of Algiers; and (b) strengthening of the national capacity for disaster management (including both short term preparedness and response, and the long-term hazard reduction measures). III. Rationale for Bank's Involvement: The operation that would be supported under the proposed project contributes directly to the present Country Assistance Strategy (CAS), which is being developed in an interactive and participatory manner. An interim CAS note, which is included as Schedule B of the Memorandum of the President (MOP) of this project 9see p. 14, MOP), indicates that the key issues that Algeria expects to be addressed by the program include urban low-income housing and the problem of substandard, illegal residential construction, water and unemployment. The social, economic and political consequences of the November 2001 disaster and the high vulnerability of main cities highlight the need to develop a strategic approach for urban hazard reduction. The rationale for Bank's involvement should be viewed in the context of Algeria's natural hazard vulnerability, its request to the Bank for assistance, as well as the Bank's international experience in this area. In the context of the volume of Bank's lending of approximately US$8 billion for post-disaster reconstruction in the last -3 -  20 years, and its focus on both reconstruction and disaster prevention activities to minimize the likelihood of occurrence, wherever possible, of natural and man-made disasters, the Bank is in an exceptional position to assist the Government of Algeria to support the proposed reconstruction and urban natural hazard vulnerability reduction program. IV. Project Description and Costs: The project would include the following components: (1) Disaster management capacity building; (2) Emergency physical works in the Wilaya of Algiers, and (3) Project management. COMPONENT 1: DISASTER MANAGEMENT CAPACITY BUILDING. This component is developed on the foundations of and is complementary to, the ongoing activities of the Ain Temouchent Emergency Earthquake Recovery Project and its efforts to reinforce the national capacity for hazard response. It will finance (i) studies, (ii) training and (iii) the equipment. Studies. This sub-component will fund several studies that have been identified as essential for strengthening the approach to early warning and emergency response, and long-term vulnerability reduction: (1) The study of the integrated system for monitoring and early warning to floods in the Wilaya of Algier; (2) Scientific study of the phenomenon that led to the disaster of November 9/10, 2001; (3) Integrated study of vulnerability reduction strategies of the Massif Bouzareah. (4) The study of vulnerability to natural hazards in the Wilaya of Algiers (outside of Bouzareah Massif); Training. This sub-component will finance short- to medium-term training of the personnel in the National Directorate for Civil Protection (DGPC), National Meteorological Office (ONM) and the National Agency for Water Resources (ANRH) to strengthen their capacity to prepare for and manage future disasters. The Bank will do its utmost to mobilize international trust funds for this activity. All long-term training (aiming to attain higher degrees in a given field of study) will be covered through the regular Government programs; and Equipment. This project will also support the acquisition of equipment necessary for capacity building of the institutions mentioned above, including Doppler radar installations, accompanying instruments, as well as computer hardware, software and modeling / simulation software for ONM; and heavy equipment for search and rescue operations, as well as computer hardware and software for DGPC and ANRH. COMPONENT 2: EMERGENCY PHYSICAL WORKS. This component will finance the emergency vulnerability reduction works, including: (a) storm water management of the Oueds [wadi], construction of ten retention basins, drainage and sewerage infrastructure; (b) reforestation; and (c) the construction of 5,000 units of social housing for the families who lost their dwellings in the disaster or occupy sites prone to natural disasters. Best practice approaches in social assessment, resettlement and rehabilitation, social inclusion and transparency, as agreed by the Algerian Government and the Bank in the Resettlement Policy Framework (RPF) will be followed. -4-  i. Infrastructure. Water works in the watershed of Oued Koriche will include: (i) the construction of ten flood retention basins to reduce the water levels; and (ii) storm water management in the Massif Bouzareah, designed to control the floods. ii. Reforestation. The project will finance on-going campaign of reforestation on public land and planting of fruit trees on private land, to reduce water circulation, promote soil water retention capacity, stabilize the soil and impede erosion. iii. Housing. This sub-component will finance the construction of 5,000 rental units in public housing complexes in Algiers, housing- related infrastructure and the facilities for social and commercial service provision. This new housing is intended for the people who were lost their homes to the floods and mud-flows of November 9/10, 2001, or those who live in project areas. COMPONENT 3: PROJECT MANAGEMENT. This component will finance the implementation of the project, including the support to the Project Coordinating Unit already established in the Wilaya of Algiers, and the capacity of the implementing agencies. This component covers the cost of technical assistance, training, equipment and vehicles that will be made available to the PCU. The Wilaya has appointed an experienced Director for the PCU and will assign staff and provide the logistical support (i.e., office space, staff salaries, equipment, vehicles and recurrent costs) to the PCU. Expenditures for staff salaries and recurrent incremental operating costs would be financed by the Government with its own funds. In compliance with the environmental Management Framework, appropriate resources fro training, technical assistance and equipment are included in this component's budget to ensure sound environmental management of the project. V. Financing: The total cost of the proposed project is about US$125 million, out of which US$88.45 million will be IBRD financing. A four-year-long Emergency Recovery Loan would include the following components: (a) Capacity building for hazard reduction; (b) Emergency physical works; and (d) Project management. VI. Implementation: The proposed project is processed according to the Emergency Recovery Loan procedures, and will be implemented over a period of four, rather that the usual three, years. This duration of project implementation was obtained in order to: (a) start project implementation as a matter of priority because of high vulnerability of the urban watersheds in the Wilaya of Algiers to natural hazards; (b) initiate and complete essential urban hazard reduction studies, as well as the reconstruction of damaged infrastructure and housing; and (c) attain project development objectives in the given implementation period. The Ministry of the Interior (MoI) will provide general policy guidance and coordination among the several agencies charged with implementing this project. MoI has already established an Inter-ministerial Committee (IMC), chaired by the Minister of the Interior or his alternate, which will include the representatives of the ministries of finance, housing and urban development, agriculture and forests, public - 5 -  works, water resources ad transport, as well as those of the Wilaya of Algiers and the ANRH. IMC's main function is to ensure strategic guidance, coordination of work different implementing agencies and to facilitate the work of implementing agencies. Given the nature of the project and vulnerability reduction that will take place through resettlement, an Ad Hoc Committee on Resettlement will also be established. A Project Coordination Unit (PCU), was established within the Wilaya of Algiers to provide the necessary technical assistance to implementing agencies, specifically the Wilaya of Algiers, ANRH, DGPC, and ONM. Additionally, principal duties of the PMU will be to ensure that the project is being implemented according to the Bank guidelines, especially its financial monitoring reporting, procurement, as well as environmental and social development requirements; financial and quality audit; and to maintain the reporting arrangement with the World Bank. In addition to the PMU Director, who will report directly to the Wali, the staff of the PMU will include at a minimum specialists in social development and environmental management, procurement, financial management and accounting, as well as urban planning / architecture and engineering. The PMU capacity necessary for project coordination and monitoring will be strengthened through staff training, as well as through strengthening the technical (e.g., information technology with and emphasis on database management and geographic information systems) capacity of the Unit. A committee to be chaired by the Wali of Algiers or his representative will be established in the Wilaya of Algiers to coordinate, monitor and control the implementation of project components for which the Wilaya is the implementation agency. Project Implementation Manual (PIM) was prepared by the Borrower to include, inter alia, institutional arrangements for project implementation; rules and procedures for preparation, implementation, monitoring and evaluation of the project; environmental, social and resettlement guidelines; Project Implementation Plan; Procurement plan, rules and procedures; performance indicators for all components; reporting modalities; and TORs for all major activities to be financed by the project. VII. Sustainability: The purpose of the proposed project is to establish sustainable capacity to reduce natural hazard exposure in the capital city of Algiers and strengthen the national capacity to prevent and manage disasters such as flood, land- and mud-slide, earthquake and drought when they do happen. One of the main principles of the proposed project is to reduce the inherent vulnerability of hazardous neighborhoods in the areas of, or similar to, Massif Bouzareah, by sensitizing the residents and building the capacity of local government bodies to enforce land-use and building code application, and strengthen risk-based urban development planning process. VIII. Lessons learned from past operations in the country/sector: In the past decade, the Bank supported recovery efforts following two deadly earthquakes in Algeria, the 1994 Mascara and the 1999 Ain Temouchent. In both cases, the Government and the Bank worked jointly - 6 -  to respond to the immediate reconstruction and recovery needs, especially in restoring housing and public infrastructure assets. The lessons learned from these two projects and other international experience indicate the need to simplify the procedures and to accelerate implementation within the parameters of the project period. IX. Program of Targeted Intervention (PTI): Not applicable. X. Environment Aspects (including any public consultation): Within the context of the proposed project environmental aspects =will be addressed by developing an Environmental Management Framework (EMF) to provide general guidance to address the environmental issues. Resources fro capacity strengthening will be provided to the Environment Inspection Agency (EIA) and the Conservation des forets. The performance of the EIA will be regularly monitored and reviewed during the mid-term Review. EMF was disclosed to the InfoShop and within the country. In respect to social aspects, providing new housing for those who lost their homes is one of the objectives of the project. All involuntary resettlement will comply with the Resettlement policy Framework ( RFP - which in turn complies with the OP4.12) and has been prepared by the Borrower. RFP adheres to all relevant Algerian laws while ensuring compliance with the Bank's safeguard policies 9OP/BP4.12). The RFP includes; (a) the carrying out of social assessment and public consultations; (b) the preparation of resettlement action plan (RAP); and (c) the implementation of the RAP and the disclosure of beneficiary lists. The process will follow Algerian Executive Decree 92-48 on the allocation of social housing. Initial surveys and estimates of potential beneficiaries have already been conducted by the Wilaya of Algiers and will be confirmed by an extensive social assessment. The RFP states that no demolition will occur before new housing is ready for those who qualify for re-housing in new units. Regarding information disclosure and transparency, the Wilaya of Algiers agreed to ensure information dissemination through its Information and Documentation Center. The Wilaya plans to further the communication efforts through wider information dissemination campaigns (e.g., web-sites, community consultations, media). Any complaints will be handled by "Listening Units" set up by the Wilaya immediately after the floods. XI. Contact Point: Task Team Leader: Jelena Pantelic Telephone 202 473 9377 jepantelic@worldbank.org XII. For information on other project related documents contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-5454 -7 -  Fax: (202) 522-1500 Web: http:// www.worldbank.org/infoshop Alger, Tipaza, Chlef, Tiaret, Boumerdes, Oran, Tizi-Ouzou, Tlemcen, Ain Temouchent, Saida, Ain Defla, Mostaganem, Mascara and Relizane. Including over 100 people unaccounted for and presumed dead. The expected Board date to present the final document is the end of calendar year 2002. Its functions are described in detail in the attached Resettlement Policy Framework (RPF) developed and adopted by the Algerian Government. This PID was processed by the InfoShop during the week ending August 16, 2002. -8-