Tunisia - Third Urban Development Project

Documnt of The World Bank FOR OMCIAL USE ONLY Report No. 13514 PROJECT COMPLETION REPORT TUNISIA THIRD URBAN DEVELOPMENT PROJECT (LOAN 2223-TUN) SEPTEMBER 12, 1994 Infrastructure Operations Division Maghreb and Iran Department Middle East and North Africa Regional Office 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 EOUIVALENTS 1 SUS (1982) - 0.500 TD 1 $US (1989) - 0.903 TD 1 SUS current - 0.966 TD MEASURES AND EOUIVALENTS 1 meter (m) . 39.37 inches (in) 1 square meter (m2) - 10.9 square feet (Eq ft) 1 kilometer (km) - 0.62 mile (mi) 1 hectare (ha) . 10,000 m2 or 2.471 acres 1 acre - 4,047 m2 or 0.405 ha 1 kilogram (kg) - 2.2 pounds (lbs) 1 pound (lb) . 0.454 kg 1 ton (metric) - 2,205 lbs or 1,000 kgs ABBREVIATIONS AND ACRONYMS AFH Agence Fonciere d'Habitation (Land Development Agency) ARRU Agence pour la R6habilitation et la R6novation Urbaine (Urban Upgrading and Renewal Agency) ASM Association pour la Sauvegarde de la Medina (Association for the Safeguard of Medina) BCT Banque Centrale de Tunisie (Central Bank of Tunisia) BDET Banque de Developpement Economique de Tunisie (Economic Development Bank) BH Banque de l'Habitat (Housing Bank) CNEL Caisse National d'Epargne-Logement (National Housing and Savings Fund) CPSCL Caisse de PrAts et de Soutien des Collectivites Locales (Local Communities Support Fund) FOPROLOS Fonds Social pour la Promotion du Logement des Salari6s (Workers' Housing Fund) MOE MinistAre. de l'Equipement (Ministry of Equipment) MOH Ministare de l'Habitat (Ministry of Housing) MOINT Minist6re de l'Int6rieur (Ministry of Interior) MOPF MinistAre du Plan et des Finances (Ministry of Planning and Finance) MTC Ministare du Transport et des Communications (Ministry of Transport and Communications) ONAS Office National d'Assainissement (National Sewerage Authority) SNIT Soci6t6 Nationale Immobiliere de Tunisie (National Real Estate Company) SONEDE Soci6th Nationale d'Exploitation et de Distribution des Eaux (National Water Production and Distribution Company) SPROLS Soci6t6 de Promotion des Logements Sociaux (Social Housing Company) STEG Societ6 Tunisienne d'Electricit6 et de Gaz (Public Electricity and Gas Company) FISCAL YEAR January 1st - December 31st  FOR OFFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.S.A. Office of Director-General Operations Evaluation September 12, 1994 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Tunisia Third Urban Development Project (Loan 2223-TUN) Attached is the 'Project Completion Report on Tunisia - Third Urban Development Project (Loan 2223-TUN)" prepared by the Infrastructure Operations Division of the Middle East and North Africa Regional Office. Part II was prepared by the Borrower. It highlights the importance of well resourced coordinator mechanisms where project organizations are complex as well as the need to involve beneficiaries and private land developers to ensure sustainability. The institutional framework caused numerous delays as different agencies were responsible for credit, land acquisition, roads, drainage and rehabilitation. Predictable difficulties were encountered in the implementation of cost recovery measures due to the fact that the project operated within an urban context where raising taxes is not a tradition. Through flexible adaptation, the project achieved its objectives of improving housing and urban services for low-income families, strengthening the urban renewal agencies and ensuring better coordination between them, and promoting the implementation of a national approach to housing policy formulation. Project objectives were accomplished through rehabilitation of substandard settlements, development of serviced lots and the provision of housing credit. The project underwent many changes (mostly beneficial) in the content of its components. The two most important amendments were the extension of the rehabilitation component to two more Governorates and the introduction of a new component consisting of a special sewerage project for substandard settlements as part of a national program. The Loan Agreement was amended three times without changing the amount of the loan. The project was successful in the implementation of its physical components, and in several areas exceeded appraisal expectations. On balance, the project outcome is rated as satisfactory, its institutional development impact is rated as modest (due to the positive impact of technical assistance on key urban renewal agencies yet negligible impact on municipalities' ability to pay for urban renewal), and the sustainability of its policy approach is uncertain due to the lack of progress on cost recovery. The PCR is of good quality. An audit is planned. Robert Picciotto by H. Eberhard Kopp Attachment This docunent 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.   PROJECT COMPLETION REPORT TUNISIA THIRD URBAN DEVELOPMENT PROJECT (LOAN 2223-TUN) TABLE OF CONTENTS PREFACE EVALUATION SUMMARY Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .i Implementation .