Uganda - Nakivubo Channel Rehabilitation Project

Report No. PID7396 Project Name Uganda-Nakivubo Channel Rehabilitation (@+) ... Project Region Africa Regional Office Sector UY - Other Urban Development Project ID UGPA59223 Borrower(s) Government of Uganda (GoU) Implementing Agency Kampala City Council (KCC) Environment Category B Date of Initial PID February 2, 1999 Date PID Prepared March 25, 1999 Appraisal Date March 22, 1999 Projected Board Date May 6, 1999 1. Country and Sector Background The Government's strategy with regard to Kampala is anchored in its objective to restore key infrastructure in the capital to make it a more efficient and livable city. In this context the rehabilitation of the Nakivubo Channel is significant given that it is the main drainage channel in Kampala. It used to be an earth drain which was channeled in the 1930s through some civil works and functioned fairly well till about the 1960s. Gradually, however, because of non-maintenance its efficacy declined. The channel floods frequently during rains causing considerable hindrance to economic activity in the populated areas such as the Central Business District of Kampala, deterioration of the adjacent road network and suffering to the populace at large. This situation was further exacerbated by the El Nino rains in 1997- 98 which were particularly heavy. The Government's strategic objectives for Kampala, therefore, include the following: - Less flooding of Kampala's Central Business District streets which will increase their economic life thus providing savings in maintenance costs, leading to more efficient delivery of other basic urban services. - Ensuring appropriate maintenance discipline thus enhancing sustainability of infrastructure investments. - The need for improved infrastructure services to facilitate commercial and industrial development and thus support poverty alleviation efforts. 2. Objectives The project would support the Government's program by alleviating the frequent and increasing incidence of flooding which has adverse effects on the road network, traffic flow, economic activity and overall living conditions in the city. It would also assist the Kampala City Council (KCC) to enhance its ability to plan, manage and execute complex investment decisions and programs; and to establish the primacy of maintenance of key infrastructure investments. This operation, which will be the largest civil works project that the KCC has ever undertaken, would therefore serve as a  testing ground to support KCC's reform program initiated under the ongoing IDA financed First Urban Project (Credit 2206-UG). 3. Rationale for Bank's Involvement It should be noted that the World Bank is the only donor agency active in the urban sector in Uganda. The Bank has supported improved service delivery in Kampala City Council through the ongoing IDA-financed First Urban Project. In this project the Bank will: (i) further support the KCC's Strategic Framework for Reform initiative; and( ii) continue to support the key institutional and financial reforms initiated under the First Urban Project. 4. Description The project would consist of the following components: (i) Civil Works comprising of the main (Nakivubo) channel, auxiliary works and priority drainage "Black Spots" rehabilitation. (ii) Project Implementation Support i.e., a consultant for construction supervision. (iii) Program and Policy Studies consisting of the Kampala Drainage Master Plan Study and the Kampala Urban Transportation Improvement Programme Study. (iv) Institutional Support to KCC's Strategic Framework for Reform Program, initiated under the First Urban Project (Credit 2206-UG) and to be further deepened under the proposed project which includes: revenue enhancement activities; seed funds to facilitate contracting out of basic service delivery functions; and implementation support and training. In addition, a framework for developing a long-term Kampala City Development Strategy which brings together these various initiatives in a cohesive manner will also be supported under this component. 5. Financing Total (US$m) KCC 2.54 IDA 22.38 Total Project Cost 24.92 6. Implementation KCC, which is currently undergoing substantial reorganization through the Strategic Framework for Reform initiative started under the First Urban Project will be the implementing agency. KCC has established a Core Team within its organizational structure which consists of a group of professionals selected by KCC from its own staff, under contractual terms, to carry out management functions for the implementation of its reform program initiated under the Strategic Framework for Reform and execute its special projects such as the First Urban Project. The Nakivubo Channel Rehabilitation Project will also be handled as a special project of KCC under the overall management of the Core Team. However, the Nakivubo Channel Rehabilitation Project requires an effective capacity for the procurement, supervision and management of works and consultant services within the time frame required and KCC has traditionally had limited capacity in this regard. The capacity of KCC to do the above will be reviewed, and augmented through -2 -  the provision of technical advisory services from its technical cooperation partner, the Kirklees Metropolitan Council of the U.K. and other sources as necessary. Construction supervision of the civil works will be provided through a Construction Supervision Consultant appointed by KCC and financed from the project. 7. Sustainability As part of the project, KCC has prepared an Operations and Maintenance Plan (Routine, Periodic and Emergency) following construction and hand over of the Nakivubo Channel. It is intended that routine, periodic and emergency maintenance will be carried out under contract; this contract will be renewable annually based on performance by the contractor. The KCC Core Team will supervise this contractor and monitor the work. KCC has agreed to set up a separate escrow account into which a portion of its commercial revenues will be channeled to provide for operations and maintenance (O&M) costs for the channel in the future. It should be noted that in the short term (until a revised property tax administration system is fully operational) a significant property tax base increase to support O&M costs is not expected. Therefore, commercial revenues are earmarked for covering O&M costs. KCC will set up an improved and more efficient property tax administration system under this project as a first step to determining and realizing revenue effectively from this revenue base and allocating the revenue through a budgetary process. The project design has taken into consideration both capital and maintenance costs in determining the most cost-effective alternative. In addition, availability of locally available materials and requisite labor skills for undertaking routine and periodic maintenance were factors in the project design to ensure project sustainability. 8. Lessons learned from past operations in the country/sector Lessons learned from previous projects include: (i) Lack of ownership due to inadequate involvement of the client in the decision making process; (ii) Unsustainable investments due to inadequate attention to operations and maintenance; (iii) Lack of community consultation resulting in adverse public reaction; (iv) Absence of pre-qualification of contractors in large civil works contracts resulting in award of contract to lowest bidder but without the requisite capacity; (v) Weak capacity in some local consulting firms resulting in inadequate and inappropriate advice to the client; (vi) Lack of capacity in the client to effectively supervise civil works contracts. (vii) Inherent inefficiencies in certain service delivery functions using force account. 9. Program of Targeted Intervention (PTI) No 10. Environment Aspects (including any public consultation) Issues: The investments under this project focus on flood alleviation and improvement of drainage in the low-lying areas of Kampala within the Nakivubo channel catchment area. The project therefore focuses on improvement of - 3-  parameters which lead to a safer, more sanitary, and environmentally improved living environment. The project will have limited environmental impact primarily during construction activities due to noise, dust, increased vehicular activity and aesthetics. An environmental impact assessment has been done which covers impacts and mitigation measures in the areas of flood alleviation, soil erosion, transport and disposal of excavated materials, flow diversion, relocation of utilities, provision of footbridges, aesthetics, and health and safety during construction activities and following project completion. The project will be subjected to this checklist of mitigation measures. These mitigation measures have been incorporated in the bid documents and will be applied during construction. A social impact assessment was carried out during the project design phase. This assessment was done in order to identify any significant social risks resulting from the implementation of the project. Intensive consultations were undertaken with local vendors associations, local Council leaders, market vendors, shop owners and operators, commuters, industrialists, schools, property owners, the police, the fire brigade, and subsistence cultivators at the downstream end of the channel. In addition, utility companies whose services cross the channel at various places were consulted. The Uganda Telecommunications company and the Uganda Electricity Board have prepared designs and cost estimates for alterations to their services which have been incorporated in the bid documents. The assessment concluded that there is universal support for the project and that it is not anticipated that project implementation would involve major social risks. There are no resettlement issues involved, other than minor temporary relocation of make- shift vending displays within the existing Nakivubo Channel property limits. This temporary relocation will be done in collaboration with the vendors' associations during construction. It will generally involve shifting business from areas where construction is taking place to areas where construction is yet to begin or has been completed. The project is expected to have a significant overall benefit to low income groups, through flood alleviation, particularly in the areas adjacent to open air market activities near the channel. 11. Program Objective Category: EN 12. Project Benefits In general, the proposed project will: (i) reduce the risk of flood damage to property and infrastructure and result in time and cost savings in transport operations both in Central Kampala and in the outlying areas; (ii) reduce flood occurrence in central Kampala; (iii) serve as a vehicle for building the institutional and managerial capability of KCC for planning, implementing and instituting measures to ensure sustainability of future investment projects; and (iv) improve commercial and industrial activities and land use and result in health benefits. 13. Project Risks: Key risks related to the project have to do with KCC's: (i) commitment to sustained efforts at improving program management and service delivery capacity; (ii) ability to set aside the required funds for O&M; and (iii) ensuring adequate quality of civil works construction. - 4 -  14. Contact Point: The InfoShop The World Bank 1818 H Street, N.W. Washington, D.C. 20433 Telephone No. (202)458 5454 Fax No. (202) 522 1500 Task Manager Gautam Sengupta The World Bank 1818 H Street, NW Washington D.C. 20433 Telephone: (202) 473-4152 Fax: (202) 473-8301 Note: This is information on an evolving project. Certain activities and/or components may not be included in the final project. PID Processed the week ending April 2, 1999. - 5 -  ANNEX Because this is a Category B project, it may be required that the borrower prepare a separate EA report. If a separate EA report is required, once it is prepared and submitted to the Bank, in accordance with OP 4.01, Environmental Assessment, it will be filed as an annex to the Public Information Document (PID) . If no separate EA report is required, the PID will not contain an EA annex; the findings and recommendations of the EA will be reflected in the body of the PID. -6-