Algeria - Ain Temouchent Earthquake Emergency Reconstruction Project (TEERP)

Report No. PID8703 Project Name Algeria-Emergency Reconstruction (@+) ... Ain Temouchent Emergency Earthquake Project Region Middle East and North Africa Region Sector Institutional Development; Rural Roads; Urban Housing; Rural Water Supply & Sanitation; Urban Water Supply Project ID DZPE69947 Borrower(s) GOVERNMENT OF ALGERIA Implementing Agency Address MINISTRY OF INTERIOR Address: Palais du Gouvernement, Alger Contact Person: M. Ould Ameur Tel: 213-2-732340 Fax: 213-2-734367 Environment Category B Date PID Prepared March 28, 2000 Projected Appraisal Date April 10, 2000 Projected Board Date May 4, 2000 1. Country and Sector Background Preparedness of the disaster response system. Disaster response in Algeria today is structured by the system set up in the aftermath of the 1980 El Asnam earthquake, a magnitude 7.2 earthquake which killed 2300 people, caused 8300 injuries, left 479,000 homeless, destroyed 20,000 buildings and caused an estimated direct loss of US$2 billion.Subsequent to that earthquake, a 1985 decree (No. 85.231) established the legal structure of Algerian Civil Protection, providing for decentralized authority and responsibility to the wilayas and their governors although all levels of government were directed to establish plans for emergency preparedness, emergency response protocols and procedures, following common operational priorities and guidelines.In accordance with that decree, the Disaster Organization in Algeria is today highly decentralized. Municipalities and the governors of wilayas have lead responsibility for all emergencies, while the role of the central government is to provide assistance as requested. Inter-ministerial coordination takes place through structures called crisis cells, which are formed at the provincial level in response to an emergency and which may be formed at the national level as well: a national-level crisis cell is established when more than one wilaya is impacted by an emergency or at the request of the governor of an affected wilaya. A national-level Crisis Cell has formed in response to the December 22 earthquake in response to the request of the Governor of the Wilaya of Ain Temouchent. Civil Protection in Algeria performed ably in the hours following the Ain Temouchent earthquake. Officials and the provincial and national level followed established plans and protocols. Efforts to rescue trapped victims and provide medical assistance were undertaken immediately; specific requests for assistance were forwarded to adjacent Wilayas and  the national government in the first hours following the event; temporary shelters were in place within hours, and the damage assessment process was well coordinated and timely.Despite these successes, the Government of Algeria is mindful that the Ain Temouchent was a moderate-sized earthquake and that the impacts, while severe in some areas, were limited. Reflecting on the experience gained in the December 22 earthquake, the Government of Algeria has judged that its current system requires reinforcement, and has requested the Bank's assistance in efforts to upgrade its preparedness for future disasters. The Government's priority areas include search and rescue equipment and training, an upgraded communications and data processing system including GIS, improved estimates of likely damages to urban areas, and additional training.Risk management. Algeria's system of risk management principally features legislation providing that the Government will protect and support the lives of the Algerian population affected by natural disasters. The national guarantee was motivated by the fact that 23t of Algerians live below the poverty line. In situations of natural disaster, many are unprepared to overcome income shocks and would be unable to secure the minimum necessary food and shelter. In light of this, and in the absence of an affordable insurance scheme against natural disasters, the Government has obligated itself to supply safe water, food and shelter to those affected by natural disaster.Fulfilment of its obligations in the aftermath of the December earthquake cost the Government about $3.4 million on the shortest of notice to provide first aid. These short term costs have already been a significant fiscal shock which may negatively affect the Government's capacity to fulfill regular social obligations (including health and education) critical to Algerians. As for the longer term, the earthquake is estimated to have caused $100-$120 million in physical damages altogether.The Government is motivated by these considerations to study ways to improve management of disaster risks. In addition to measures above which will reduce risk by improving assessment of vulnerable points and enhancing the Government's ability to take early and cost-effective measures in case of emergency, the Government would also like to undertake consideration of national earthquake insurance and to improve the building code and its enforcement.Housing shortage. Housing in urban areas was in severely short supply even before the further losses caused by the earthquake. 2. Objectives The project's development objective is to restore normal functioning of communities damaged by the December 22, 1999 earthquake in the Wilaya of Ain Temouchent and to increase national preparedness for future disasters.Earthquake of Ain TemouchentOn December 22, 1999 an earthquake estimated at magnitude 5.5 occurred in the Wilaya (Province) of Ain Temouchent, located in western Algeria about 75 kilometers from Oran. The Wilaya of Ain Temouchent has about 327,000 residents settled in 28 communities.The earthquake struck at 6:37 p.m. as people were breaking the Ramadan fast. Strong ground motion lasted about 15 seconds, according to the Algerian National Earthquake Engineering Center (CSG). The earthquake occurred along a previously unknown fault, at an estimated depth of 10 km. Its epicenter is believed to have been 5 km south of the city of Ain Temouchent, the largest settlement in the Wilaya. There was no surface faulting. Ten aftershocks occurred within a few hours of the earthquake, varying in magnitude from 3.8 to 5.1.Damage to Housing and Infrastructure. The earthquake caused severest damage in three -2 -  communities, Ain-Temouchent, Sidi Ben Adda and Ain Tolba. Twenty-seven people died in the collapse of residential units and 274 people were injured. About 7000 housing units were damaged, as well as water supply systems, sewerage systems, waste treatment plants, roads, schools, health facilities and government offices. The cost of physical damage from the earthquake is currently estimated at about US$100-120 million.National Emergency Response System Severely Tested. At the request of the Algerian government, the Bank conducted a mission in the aftermath of the earthquake. The mission's review of the current organizational systems for the management of emergencies at the national, provincial and municipal levels, including enabling laws and decrees, emergency plans, operational procedures, equipment needs, mutual assistance agreements, roles and responsibilities, and communications capabilities, has pointed out the need to upgrade the Government's emergency management system to improve future risk management and disaster preparedness. 3. Rationale for Bank's Involvement With the experience gained in emergency projects worldwide, and with its long history of support for development in Algeria, the Bank brings to the recovery and reconstruction process an organizational framework and clear process for identifying, selecting and implementing priority investments for municipal/rural infrastructure and emergency response management. Through the emergency project, the Bank can provide critical funding when it is most needed.The Bank is in a unique position among donors to retain an overall view of reconstruction/recovery requirements and has a unique ability to focus on policy and institutional reform and the economic and social aspects of reconstruction as well as the physical. 4. Description Component A: Budget Support and Aid (US$ 3.4 million)This component will provide retroactive financing of the costs incurred in the early stages of the Government's disaster response, up to US$3.0 million. Up-front balance of payments support will bolster Algeria's international reserves and provide budgetary support to help fund current spending priorities, including social programs for earthquake victims. Component B: Disaster Organization and Risk Management (US$ 10.5 million)The objective of this component is twofold: (1) to strengthen the institutional capacity of emergency management in Algeria to prepare for and manage the consequences of large-scale emergencies, especially earthquakes, that pose a significant risk to the nation's most heavily populated areas; and (2) to promote a nationwide, comprehensive risk management strategy through:enhancement of the understanding of the seismic risks in the Ain Temouchent region;understanding the potential losses that could occur following large-magnitude earthquakes affecting heavily populated areas;development of procedures and policies for more effective enforcement of building codes including monitoring of construction practices; andconsideration of policy alternatives, especially the use of insurance, that would enable the Government of Algeria to ease the financial impacts on operating budgets as well as provide incentives for risk reduction initiatives by individuals and government.To achieve these objectives, this component will finance the acquisition of search and rescue equipment, an analysis of communications and data needs and upgrading of current systems, training programs in managing large-scale disasters, the development of seismic risk assessments for the Ain Temouchent region, the development of loss estimation studies for the city -3 -  of Algiers, training opportunities for building officials, and an assessment of policy alternatives for establishing a national earthquake insurance program.Component C: Housing (US$ 83.7 million)The principal objective of this component is to assist the Government of Algeria in the reconstruction of permanent housing in the urban and rural areas affected by the earthquake.The Urban Housing Reconstruction sub-component will finance technical assistance, design, supervision, training and all necessary construction-related investments to replace collapsed housing units and those units having to be demolished, due to either unsafe conditions and heavy damage or risky location. Approximately 3,400 housing units are estimated to be eligible for reconstruction. The Bank will finance these units on sites to be identified by the Borrower following the requirements stated below. Construction of these units is planned to start as soon as possible, approximately in early summer 2000. Sufficient time is necessary for the selection of beneficiaries, careful site selections, and technical documentation. The Rural Housing Reconstruction sub-component will finance: i) materials for 800 units with initial contribution from beneficiaries; ii) technical assistance, standard design, supervision, and training. Construction training will be provided through which the beneficiaries will gain qualification and experience in the construction of seismic resistant buildings in order to undertake construction activities. Strict geo-technical and structural requirements will be applied to each site and to each housing unit. The beneficiaries will purchase materials according to technical specifications. No modifications will be made to the standard designs, and no materials are allowed to be used without prior approval from the PIU. The supervision of construction will be provided through the independent consultants to be employed by the PIU or through the PIU staff, as appropriate. Component D: Technical Infrastructure (US$ 9.1 million)The objective of this component is to restore essential infrastructure in the municipalities and rural communities affected by the December 22, 1999 earthquake. The component includes design of infrastructure and supervision of its construction: water supply systems, sewerage systems and wastewater treatment plants, and roads.. Construction of these facilities shall be carried out in accordance with the current standards in Algeria, incorporating recommendations of the engineering consultants who, under contract with the PIU, will supervise the design and construction of the facilities. Experts will also determine the level of need for assistance to local communities in the areas of procurement, design, construction, supervision and various field surveys, to assure compliance with quality standards and regulations. Component E: Social Infrastructure (US$ 28.9 million)The principal objective of this component is to assist and provide financing for the reconstruction of public buildings which provide vital social services, including schools, hospitals, recreation centers, and government offices. Restoration of these facilities is essential to bringing back a sense of stability and normality to the community and to restoring confidence in the government's ability to deal with public catastrophes.The Government of Algeria has conducted an assessment of damages, and these data have been reviewed and investigated by a team of national specialists financed by the World Bank. Among the findings were the following:Of the 39 school buildings located within the Wilaya Ain Temouchent, 12 were found to be heavily damaged and will have to be reconstructed. The largest of these schools, Lycee Bachir Ibrahimi in Ain Temouchent, formerly had about 1340 students. Besides the twelve schools which will need reconstruction, the earthquake -4 -  also effectively damaged four additional schools, which will require major repairs.The earthquake also destroyed or damaged numerous regional health facilities, including the main hospital in Ain Temouchent. Eight health centers were severely damaged and three partially damaged.Four public buildings were seriously damaged and will have to be completely rebuilt. Several others were damaged and will have to be repaired.Component F: Project Implementation (US$ 2.2 million)This component will finance the creation and maintenance of a Project Implementation Unit (PIU) during the implementation period. Component A: Budget Support and Aid Component B: Disaster Organization and Risk Management Component C: Housing Component D: Technical Infrastructure Component E: Social Infrastructure Component F: Project Implementation 5. Financing Total ( US$m) Government 20.59 IBRD 114.86 IDA BENEFICIARIES 3.51 Total Project Cost 138.96 6. Implementation Project Implementation Unit. The Project Implementation Unit will be responsible for the overall implementation of the project. It will be established in the city of Ain Temouchent, and managed by a Director who reports directly to the Governor of the Wilaya. The Director will be responsible for hiring the staff of the PIU, subject to pre-approval by the Bank. The PIU will implement the project under the overall guidance of the National Steering Committee (see below) and in close coordination with related ministries and agencies.The PIU will establish work programs and detailed implementation schedules for each component, and define the responsibilities of each party involved in project implementation. The PIU will prepare terms of reference in cooperation with sector ministries and agencies, as well as bidding documents and contracts for construction works, goods and consultancy services. It will assure quality control of contracted activities; authorize payment of invoices submitted by contractors; arrange periodic social assessments; and monitor compliance with Algerian and World Bank environmental regulations. The PIU will serve as a secretariat to the National Steering Committee, prepare the working documents for the meetings of the Steering Committee, and submit quarterly progress reports and annual audit reports to the Governor of the Wilaya of Ain Temouchent, the National Steering Committee, and the Bank.National Steering Committee. The National Steering Committee (NSC) will be chaired by the Minister of Interior, and consist of Deputy Ministers or other representatives of the ministries currently composing the "Crisis Cell": Housing, Health, Water and Environment, besides Interior, as well as representatives of NGO community. The NSC will be responsible for providing advice and overall guidance to the Governor of the Wilaya of Ain Temouchent who oversees the Project Implementation Unit (PIU). The NSC will review the quarterly progress reports. Should there be a need to reallocate project funds among components, the NSC will approve such changes before they are submitted for the Bank's approval. - 5 -  7. Sustainability Factors critical to the sustainability of the project include strong motivation on the part of national, regional and local governments to implement quickly earthquake recovery and risk reduction measures which will protect public health and safety and limit future economic losses. The improved enforcement of quality standards and the support for enforcement of building codes will contribute to project sustainability. 8. Lessons learned from past operations in the country/sector Activities intended to reduce the impact of the next disaster must be an integral part of recovery. Bank experience with a disaster assistance to many countries worldwide has shown that mitigation activities, intended to reduce the impact of the next disasters, must be an integral part of both recovery and pre-disaster planning. TEER incorporates this lesson in activities under Component B.The most immediate need following a disaster is provision of shelter. Experience from latest Bank emergency reconstruction operations is that the best solution is to build to a habitable standard and assume that the beneficiary will underwrite additional costs; moreover, any cost recovery calculation based on lending terms should take into account affordability and sustainability of the investments. TEER accordingly intends to provide housing designs to a basic standard, and award these units take into consideration beneficiaries' ability to pay and contribute.Project design should be simple for an emergency operation. The design should be based on participation by the local community, and take into account local implementation capacity. Implementation should be flexible to ensure responsiveness to community needs. TEER has a simple project design and has simplified procurement arrangements as much as possible. The project has incorporated the findings of an early social assessment, and anticipates incorporation of the findings of future social assessments into ongoing implementation. Rebuilt houses must be disaster-resistant. The experience from the previous emergency projects teaches that disaster-affected families should be provided with guidance in disaster-resistant building techniques. Low cost reconstruction is desirable, but economizing on the structure of buildings is not cost effective given the recurrent character of disasters. Accordingly, TEER-financed housing will be initially constructed to a high standard of earthquake resistance; basic structures will be required to conform to an earthquake-resistant design which will itself be a project output. 9. Program of Targeted Intervention (PTI) N 10. Environment Aspects (including any public consultation) Issues : The most appropriate tool to ensure that environmental considerations are given adequate attention under an Emergency Recovery Project is an Environmental Management Plan. The EMP addresses the following issues:Identification of impacts and definition of mitigation measures;Institutional strengthening with regard to the integration of environmental considerations into project design and implementation;Definition of a monitoring scheme and related indicators.The issue of consultation and disclosure will be addressed in the early stages of project implementation: This is exceptional practice only acceptable for emergency projects. The necessity to satisfy conditions of disclosure and consultation will be included in the loan agreement. -6-  11. Contact Point: Task Manager Piotr M. Wilczynski The World Bank 1818 H Street, NW Washington D.C. 20433 Telephone: 202-473-2513 Fax: 202-614-0752 12. 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 Fax: (202) 522-1500 Web: http:// www.worldbank.org/infoshop Note: This is information on an evolving project. Certain components may not be necessarily included in the final project. Processed by the InfoShop week ending March 31, 2000. - 7-  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. -8-