Project Information Document by 04t6jy

VIEWS: 5 PAGES: 16

									General Comments

1. Emergency operation accepted will be processed under OP 8.50
2. The project is between financed between IDA and GOA, within the Priority Phase of
the Program. No other donors involved. They are involved in financing the other
activities include in the Priority Phase ( outside the Project).
3. Clean confusion between program and project
4. There is a need to introduce the Priority Phase of the Reconstruction Program and its
link with the ECP
5. HI/AIDS in the Component A?
6. Keep the same name as in the identification AM for the various components ? or
should we change everething as she is asking ?
Project Information Document                                                   AB847

Project Name                   Republic of Angola–Emergency Multisector Recovery Project
Region                         Africa Regional Office
Sector                         Multisectoral
Project I.D.                   P083333
Borrower(s)                    Angola
Implementing Agency            To be determined
Environment Category           A B (are we sure this is what we want) should be B. We can in all
                               cases take out reconstruction
Date PID Prepared              January 15, 2004
Projected Appraisal Date       June 2004/July 2004
Projected Board Date           July 2004 September 2004

1.    The End of Conflict Circumstances of the Disaster ( generated by the Conflict)

The prospects for lasting peace 27-year civil war in Angola are now better than they have
been for decadesis finally over, and the prospects for lasting peace now appear to be
strong. (We need to be more positive) In April 2002 the representatives of the
government and of União Nacional para Independência Total de Angola (UNITA) signed
a ceasefire and peace agreement, ending a 27-year civil war, one of the longest in the
world. No violations of the agreement have occurred to date and a return to civil conflict
is unlikely. The reintegration of some 138,000 ex-combatants and their families is well
underway with the assistance of UN agencies and the Bank-supported Emergency
Demobilization and Reintegration Project approved by the Board in March 2003. Some
1.33 million war-displaced persons have already returned home (check see point 2).

The agreement creates a unique opportunity to stimulate growth and significantly reduce
poverty. To consolidate peace and achieve national reconciliation, government has
started to implement programs aimed at reestablishing order and security, addressing the
needs of most vulnerable, stabilizing and revitalizing the economy, restoring essential
social services, and reconstructing critical infrastructure, including roads, bridges, and
railways.

2.       Economic and Social Impact of the Conflict

Angola’s nearly 30 years of civil conflict have had devastating effects on the country’s
economy, infrastructure, and citizen’s quality of life. While accurate data are lacking, it
is estimated that over 1 million people may have been killed since the armed conflict
began between rival groups following independence in 1975. The conflict also displaced
about 4.3 million people, nearly one third of the country’s 13 million citizens. About
100,000 of these are unaccompanied children. Most of the displaced fled to Luanda,
Lobito, and other coastal cities. They live in squalid conditions in overcrowded urban
and semi-urban areas without functioning health and water and sanitation infrastructure
and without any adequate social services. The potential for epidemics is high. It is also
likely that the number of people infected by HIV/AIDS is rising rapidly due to the
movement of people and lack of HIV/AIDS awareness. The situation is becoming even
more complex as some 3 million (estimates of August 2003) internally displaced people
are now returning to their provinces of origin and the needs for adequate social
reintegration are becoming urgent and more important.

Conditions in the rural areas formerly under the control of UNITA are even worse than
those of cities. In many areas, the recent drought conditions and the limited availability
of seeds, fertilizers and other agricultural inputs have combined to create widespread food
shortages. Many people in the worst affected provinces are still suffering from severe
malnutrition and famine. The health situation in rural areas is extremely poor and
alarming. Conflict has destroyed water and sanitation systems throughout the country;
only 15 percent of rural dwellers have access to safe water. Health care services are
nonexistent or inaccessible for the great majority of rural dwellers. Encouragingly, in
areas that have been opened up to road traffic as security improves, living conditions
appear to be getting better as humanitarian aid reaches previously isolated communities
and food becomes more available.

Nearly three decades of conflict have left the nation’s infrastructure in shambles. The
majority of roads and airstrips are impassable or insecure. Moreover, some 5–7 million
landmines situated throughout the nation limit movement and threaten the lives and
welfare of Angolans. The most affected provinces include Bié, Huambo, Moxico, Lunda
Norte and Lunda Sul, Uige, Cuando Cubango and Malanje.

Poverty and social indicators. Angola ranks 164th out of 175 countries on UNDP’s
Human Development Index (HDI) for 2003, and attaining the Millennium Development
Goals is a distant dream. Per capita income totals about US$660 per year.1 Over two-
thirds of Angolans live on less than US$2 per day. Nearly one in four Angolans is
extremely poor, surviving on less than US$0.75 a day. Angola’s economy needs to grow
by about 7.3 percent a year just to keep the number of poor from increasing. Although

1
    Calculated using the World Bank Atlas method.

                                                    2
available data indicate that urban poverty has worsen in recent years due to a large extent
to the influx of migrants from rural areas fleeing insecurity, poverty is still deeper and
more widespread in rural areas.

Angola’s social indicators are among the worst in the world. Life expectancy stands at 47
years. Malnutrition is acute; about 45 percent of children under age 5 suffer from
stunting (low height-for-age) and 31 percent are underweight. One of six children born
never reaches his or her fifth birthday. Malaria, respiratory infections, diarrhea diseases,
measles, and cholera are the main causes of illness and death. Sleeping sickness has
reemerged as a major killer in the northwest. Primary school enrollment is among the
lowest in Africa; in the regions most affected by the war just 25 percent of children are
enrolled in primary school. Only 27 percent of students who enter grade one complete
grade four. The poor access to education has left 70 percent of adult men and 80 percent
of women unable to read, write, or perform basic computations.

3.    Strategy of the Government

The government’s overriding objectives for the next four years are to consolidate peace,
promote national reconciliation, and improve security by extending state administration to
all areas of the country; to bring rapid improvements in food security and living
conditions for the most vulnerable and most war-affected groups, especially those
suffering from malnutrition and disease; to create safe and hospitable conditions for the
return of displaced people to their regions of origin; to stabilize the economy and to start
rebuilding social services. These objectives will be achieved by delivering basic social
services to both urban and rural dwellers; by improving transportation infrastructure to
facilitate the free movement of people and goods; and by adopting measures to stimulate
the rural economy, such as improving conditions for investment in agriculture, mining,
and rural industries. The government is working closely with the World Bank and other
multilateral and bilateral donors to achieve these goals. Angola’s oil and diamond wealth
did not translate itself in substantial welfare improvements for the country’s population.
The country economic memorandum (CEM), that the Bank is assisting to prepare, will
naturally focus on policies to help Angola initiate a virtuous cycle in which mineral
wealth would support, not undermine, development in the rest of the economy as well as
poverty reduction. Broad-based, poverty-reducing economic growth can only be achieved
if the country embarks on a policy-reform program that promotes economic
diversification and social inclusiveness. The CEM will be mainly based on medium-term
macroeconomic and fiscal adjustment, macroeconomic aspects of oil revenue
management, the economics and governance of the diamond sector, the growth-
inequality-poverty relationship, trade, structural reforms and private sector development
and rural development and agricultural growth.

The government recognizes that providing adequate social services will take time. It
plans to follow a gradual and phased approach to providing services, focusing first on
meeting the most urgent needs of the population with minimally-acceptable levels of
service, while starting the rehabilitation of infrastructure that will allow the provision of


                                              3
higher levels of service. Restoration of services will also be carefully coordinated with
investments in transport and clearance of mines.

The government is in the process of finalizing a poverty reduction strategy for 2003–07
(Estratégia de Combate a Pobreza or ECP) through consultation with a wide range of
stakeholders throughout the country. The ECP specifies actions that the government and
other stakeholders will take to address Angola’s most immediate needs. The central
element of the US$3 billion government program is the first ‘priority’ phase of the
Multisector Rehabilitation and Reconstruction Program (estimated at about US$2 billion)
Emergency Multisector Recovery Project (EMRP) that the government prepared with
technical assistance from the Bank. With its own resources the government is already
implementing a large number of activities named in the ECP, principally in the social
sectors. The government has submitted the draft ECP to the development partners for
support. . The proposed project (to be processed as an emergency operation under
OP/BP 8.50) supports selected activities of the priority phase of the government’s
multisector rehabilitation and reconstruction program. A successfully implemented
priority phase of the rehabilitation and reconstruction program is considered critical for
Angola’s economic recovery and stability.

The government is conducting policy dialogue with the IMF. Strengthened governance
and transparency, improved fiscal and monetary policies, and improved fiscal and
external debt data are important steps toward a staff-monitored program. The Bank is
working in close collaboration with the Fund in all these areas. Successful completion of
a staff-monitored program could be the basis for an eventual Fund-supported program.

4.    Response of the International Community

During most of the years of civil conflict development partners limited their assistance to
Angola to provision of humanitarian aid, basic education and health services, assistance
to combat HIV/AIDS, clean water and sanitation services, support for smallholder
agriculture, assistance for demining, and technical assistance for activities such as
improving economic management and promoting good governance and democracy.
Donors increased their support following the signing of the Lusaka protocol in 1994, but
scaled back their assistance when the peace agreement subsequently failed to hold. Since
the signing of the recent peace agreement in 2002 development partners have resumed
their support for economic recovery and development of Angola. United Nations
agencies are helping the government with a variety of programs designed to create
conditions for lasting peace, including programs to clear mines, resettle war-displaced
persons, and reintegrate ex-combatants into civilian life; health, agriculture, and nutrition
programs; and education and training services. The African Development Bank
following the clearance of arrears in 2001 is supporting basic education, health,
agriculture, fisheries, and basic infrastructure. The European Commission is focusing on
activities to further the peace process, promote good governance and development of civil
society, and improve delivering of social services and food security. Bilateral donors,
including the United States, Spain, Italy, Portugal, France, Sweden, Norway, the United
Kingdom, and the Netherlands are supporting programs to provide health and nutrition

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services, support for demining, safe drinking water supplies, support for agriculture,
macroeconomic management and statistical capacity building. A Consultative Group
meeting, the main coordinating forum for donor activities, has not been held for Angola
since the country joined the Bank in 1989.

Before going for a greater support to Angola, the donors are waiting to see more signs on
the reforms. In particular they are waiting for a PRSP; an SMP with the IMF which would
perforce have to include real progress on transparency and actions against corruption, for
example, (a) publishing the final report on the oil diagnostic study; (b) implementing the
consultants' recommendations; and (c) actively using the study's oil revenue (forecasting)
model, and a credible cash flow statement from the government showing how much of
government’s own resources will be put into the reconstruction effort.




5.    Bank Response and Strategy

During the 1990s the Bank approved eleven projects for Angola, all in support of peace
initiatives that ultimately disintegrated. In mid-1999 the Bank scaled back its assistance
program to Angola in response to unstable economic conditions, the resumption of
fighting, a shrinking portfolio and poor prospects for new lending. It approved one
project in 2000, the Second Social Action Fund, which is rated satisfactory.

The Bank started to reengage with Angola with the signing of the 2002 peace accords. It
presented its Transitional Support Strategy for Angola in March 2003, which was
designed to support Angola’s complex transition from a war-torn to a stable, democratic,
prosperous society. Technical assistance to the government to help prepare the priority
phase of the multisector rehabilitation and reconstruction program (of which the proposed
project forms a part) was a central elementpart of the TSS. The present TSS is on track
and will run out in June 2004. (was it?) The proposed project will form a central element
of the Bank’s next TSS, which will be presented together with the proposed project.

The proposed project will be anchored in Angola’s ECP. The government has already
started implementing programs with its own and so far limited donor resources, focusing
on delivering education and health services, promoting community development, and
strengthening social safety nets. The Bank and other partners have approved in June
2003 the Third Social Action Fund Project (US$120 million, of which IDA is
contributing US$55 million) (part of the priority phase of the multisector rehabilitation
and reconstruction program), which will fund community development and social
protection activities.

The proposed project will operate in six of Angola’s most war-affected provinces, as
agreed between the Bank and the government. These are Bié, Moxico, Kuanza Norte,
Luanda, Uige and Malange. In addition to being among the most affected by the war,
these provinces also have been much more deprived of public services than others. They

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contain about 58 percent of Angola’s population and are expected to receive some 30
percent of the internally displaced people returning home.

The proposed program project comprises four components: (a) rural development and
delivery of health and education services, (b) reconstruction and rehabilitation of critical
infrastructure (transportation, roads and bridges, water supply, electricity, and urban
infrastructure); (c) development of sector strategies for the medium and long terms and
strengthening of human and institutional capacities; and (e) management, monitoring and
evaluation of the implementation of the project. The activities of the proposed project are
drawn from the priority phase of the multisector rehabilitation and reconstruction
program in consultation with various sector ministries.

About 222 percent of the program’s project’s resources are for delivery of health services
care, and education, and activities aimed at preventing the spread of HIV/AIDS (no, this
is another project….reinsertion and social protection). This will help address people’s
most urgent needs and lay the foundations for longer-term programs. About 5 percent of
resources would directly support rural development, mainly through seed multiplication
and distribution and improvement of rural feeder roads to help farmers obtain critical
inputs and market their outputs. Another 27 percent of the projectgram’s resources are
for rehabilitation of transportation infrastructure, with the priority given to roads and
bridges. Reestablishing transportation links is vital to stabilize the economy and promote
economic recovery including in the rural areas, and to ensure that the inputs needed for
reconstruction of infrastructure in other sectors can be delivered on time and at reasonable
cost. About 39 percent of the resources are for rehabilitation of electricity and water
supply systems, for strengthening of solid waste management services, and for
stabilization of urban structures against natural disasters. This will help improve health
of the population, and stimulate growth of enterprises. Another 4 percent is for capacity
building and analytical and advisory services. Finally, 3 percent is allocated to project
management and preparation of the next phase.

6.    Rationale for Bank Involvement

Angola is the seventh largest country in Africa. It is a resource rich, policy poor LICUS
country. Its civil conflict and its role in the conflicts of its neighbors have contributed to
instability in the entire region. Moreover, with its vast petroleum, mineral, and other
natural resources Angola could potentially be one of Africa’s richest countries. Attaining
this potential requires peace and good governance.

The peace agreement offers Angola an opportunity to rebuild its shattered economy and
to establish a stable, democratic, and just society. The World Bank Group will play a
critical role in helping Angola to recover and develop by providing substantial financial
resources for rehabilitation and delivery of social services. Perhaps more importantly, it
will also help build capacity of both the government and nongovernmental organizations;
support efforts to establish the policy, legal and regulatory frameworks that promote good
governance and economic growth; and formulate the economic and sector strategies for a
medium and long-term development program. No other institution has the resources,

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know-how and experience that the Bank has to prepare, implement, and supervise such a
large, complex projectgram as the Emergency Multisector Recovery Project. The large
experience of the Bank in post-conflict countries, in emergency multi-sector
reconstruction programs and in Angola itself on CDD and resettlement will be drawn
upon. Bank involvement will also help guarantee a focus on reducing poverty.

Bank involvement will also help in mobilizing resources from other donors and in
coordinating the various inputs and contributions. Coordination is essential to ensure
coherence of the overall program and the smooth implementation of the project. Both the
government and other donors have asked the Bank to take this responsibility. This is
consistent with the expected Bank role and its value added within the LICUS approach.

7.    Project Description

Objectives (see Paragraph 25 of the AM)
This needs to be links to the ECP and the objectives of the Priority Phase of the Program
The overall purpose of the proposed project is to help to build the foundation for long-
term of reconstruction, economic rehabilitation, and the reestablishment of state
administration throughout the country. The specific objectives of the project are to assist
the government to (a) improve rural incomes and enhance food security, especially in the
provinces most affected by the conflict; (b) deliver essential education and health
services, and help prevent the spread of HIV/AIDS (NO), (c) restore critical
transportation links, and (d) strengthen capacity of government at all levels to formulate,
prepare, implement, and manage medium and long-term development programs. These
objectives are consistent with those of the ECP. They are also consistent with those of
the priority phase of the government’s multi-sector rehabilitation and reconstruction
program.
Targeted population
Provinces agreed upon with GOA
Estimated costs and financing

The overall cost of the proposed projectgram is estimated to be about US$324 million, of
which IDA will finance about US$205 million (63 percent). and tThe Ggovernment will
finance about US$ 109 million (34 percent), and other co-financiers (EU,
UNDP/UNCDF, French Cooperation) about US$10 million . This proposed IDA-
financed project is part of the overall priority phase of the multi-sector rehabilitation and
reconstruction program. The priority phase (estimated at some $2 billion) is anchored in
the ECP. The proposed project is the contribution of the Bank to the priority phase, and it
is expected that other donors will subsequently follow the Bank in supporting and
financing the overall priority phase of the multi-sector rehabilitation and reconstruction
program. Other multilateral donors, bilateral donors and the government will finance the
remainder.




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Table 1 Emergency Multisector Recovery Project Financing Plan
 Source                                                                Millions US$
 IDA                                                                        205
 Government of the Republic of Angola                                       109
 Other co-financiers (EU, UNDP/UNCDF, French                                 10
 Cooperation)
 Total                                                                       324

Components

The proposed project comprises four components: (a) rural development and delivery of
social services and (subproject A); (b) reconstruction and rehabilitation of critical
infrastructure (the railways, roads and bridges, electricity, water supply, and urban
infrastructure) (subproject B); (c) capacity building, institutional strengthening and
sectors development strategies; and (d) management and monitoring of the project and
the program and preparation of the next phase.

Component A: Rural development and delivery of social services. (keep the name
and restructure)This component will finance support for rural development, and delivery
of health and education services. The strategy for these sectors is to bring services to the
most war-affected provinces―where delivery of services has been extremely poor―and
to exploit synergies between interventions in rural development, health services,
education, and water and sanitation.

The rural development subcomponent will finance activities designed to (a) help small
farmers to restart their agricultural production by supporting the production of basic and
prebasic seeds and distribution of seeds and planting materials; (b) facilitate marketing by
rehabilitating some 800 kilometers of rural roads; (c) improve the knowledge base of
rural livelihood systems by undertaking strategic studies, including the development of a
strategy for involving producer organizations with rural road maintenance; and (d) build
capacity. Activities will be focused on two provinces, Malanje and Bié, because these
provinces are major producers of cassava and maize, basic staples for Angolans.

The health services subcomponent will assist the government to (a) increase access to and
use of maternal and child health services and increase access to treatment and prevention
of common illnesses by rehabilitating health posts and health centers; (b) improve the
quality of services through training of health providers and through provision of essential
medicines and supplies; (c) complement and strengthen programs (such as the HAMSET)
to prevent and treat HIV/AIDS and sexually transmitted diseases; and (d) strengthen the
government agencies involved with health services by strengthening the capacity of
municipal and provincial health teams and supporting the review of health services
policy. Participating provinces include Malanje, Moxico, Bié and Kuanza Norte,
underserved provinces with large numbers of war-affected people. Studies, training, and
provision of essential drugs will take place throughout the country.


                                              8
The education subcomponent will support the government to (a) increase access to basic
education by constructing and furnishing about 1,165 new classrooms (accommodating
93,000 students); (b) improve the quality of education by providing textbooks and other
school supplies and equipment and training and retraining courses for new and
experienced teachers; and (c) strengthen institutional capacity by building capacity of
administration and management at all levels and improving data collection, analysis,
evaluation, and planning. Participating provinces include Malanje, Moxico, Uige, Bié,
and Kuanza Norte.

Component B: Priority rehabilitation Rehabilitation of critical infrastructure. This
component will finance the rehabilitation of critical transportation infrastructure,
electricity services, water supplies, and urban infrastructure. It comprises five
subcomponents: transportation, roads, electricity, water supply, and urban services and
infrastructure. On transport I would include a few words on GOA’s strategy The
transportation subcomponent will finance the rehabilitation of some rail links between
Kuito and Luena (408 kilometers) and institutional reforms. The roads subcomponent
will finance the rehabilitation of about 285 kilometer of high-traffic roads and bridges
linking Caxito with Uige (161 kilometers), and Lucala with Malange (123 kilometers).
Activities under both the transportation and roads subcomponents support the
government’s strategy for transportation, which is to link the two main ports (Luanda and
Lobito) to the interior rail and road inner “strategic loop” connecting Luanda, Uige,
Malange, Saurimo, Luena, Kuito, Huambo, Benguela, and Lobito, covering the provinces
of Luanda, Kwanza Norte, Uige, Malange, Moxito and Bié. The electricity
subcomponent will finance rehabilitation of the mini hydroelectric plants of Cunje 1, and
rehabilitation of medium and low voltage distribution systems in major cities
(N’dalantando, Uige, Malanje, Luena, Kuito and Luanda). It will also finance studies
aimed at improving the institutional framework of the sector. The water supply
subcomponent will support rehabilitation of water works in Luanda, in other urban areas
in Bié, Malange, Kwanza Norte, and in rural areas of Moxico. The urban services and
infrastructure subcomponent will finance institutional strengthening for solid waste
management in Luanda and in provincial capitals most affected by the war, emergency
repairs to the sewage system of Luanda, and studies and equipment to control erosion in
selected provincial capitals at risk of natural disaster.

Component C: Capacity building, institutional strengthening, and development of
the medium and long term sector development strategies, capacity building and
institutional reform. This component will finance technical assistance for sector
ministries and agencies; training programs; and preparation of the strategies for the key
sectors: agriculture, education, electricity, health, transportation (covering all modes),
water and sanitation. It will also finance measures to strengthen local capacity in
preparation for decentralization (pilot trials are proposed under project financing to test
approaches to decentralization and strengthening capacity of local institutions). Finally,
this component will finance the principal studies and preparatory activities for future
investment programs.




                                             9
Component D: Management and monitoring of the project and preparation of the
next ‘consolidation’ phase. This component will finance project management, and
monitoring and evaluation of the implementation of the project. This will involve
technical assistance, expertise, consultant services, operating costs, logistical support and
equipment. The component will also finance the expertise and support needed to update
the national demining strategy and action plan. It will also finance specific demining
actions that will allow the project-supported rural development and infrastructure
investments to move forward. The demining actions will be monitored as part of a social
and environmental management plan (also financed under this component). Finally, this
component will finance studies and preparatory activities for the next phase of the
government program.




Table 2 Emergency Multisector Recovery Project Costs




                                             10
                            Proposed Emergency Multisector Recovery Project                                % Total
                               Summary costs with taxes and contingencies                                  Project
Components                                                                                 (US$ million)   Costs
A. Rural development and delivery of Social Services                                                 89     28%
    1. Rural Development                                                                             18      5%
    2. Health services                                                                               35     11%
    3. Education services                                                                            36     11%

B. Rehabilitation and reconstruction of critical infrastructure                                    209      64%
    1. Transport                                                                                    23       7%
    2. Roads & Bridges                                                                              61      19%
    3. Electricity                                                                                  39      12%
    4. Water supply                                                                                 68      21%
    5. Urban infrastructure & services                                                              17       5%

C. Sector development strategies and strengthening of human and institutional capacities             15     5%

D. Management, monitoring and evaluation of the project implementation                               11     3%

Total Project Costs                                                                                324     100%


Please make names in the tables consistent with the names in the section above. Should
be the opposite
Table 3 IDA Contributions to the Project

                            Proposed Emergency Multisector Recovery Project
                                           IDA contribution                                                % Total
Components                                                                                 (US$ million)    IDA
A. Rural development and delivery of Social Services                                                 66     32%
    1. Rural Development                                                                              13     6%
    2. Health services                                                                                26    13%
    3. Education services                                                                             27    13%

B. Rehabilitation and reconstruction of critical infrastructure                                    124      60%
    1. Transport                                                                                     8       4%
    2. Roads & Bridges                                                                              42      21%
    3. Electricity                                                                                  28      13%
    4. Water supply                                                                                 34      17%
    5. Urban infrastructure & services                                                              12       6%

C. Sector development strategies and strengthening of human and institutional capacities             10     5%

D. Management, monitoring and evaluation of the project implementation                                5     2%

Total Project Costs                                                                                205     100%




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8.    Implementation Arrangements

Project implementation period. The proposed IDA-financed project is part of the overall
priority phase of the multisector rehabilitation and reconstruction program, which is
anchored in the ECP. The project is expected to take place over three years and a half,
(Januaryuly 1, 20045–June 30, 2008 2008December 31, 2007).

Capacity of the government to execute the program and project. Capacity of the
government in Angola to execute the program and the project of such scope and
magnitude in accordance with Bank procedures is extremely weak. Current regulations
and procedures are not always consistent with Bank requirements. The recent country
procurement assessment review, carried out in April 2002, revealed major problems
(transparency, enforcement and lack of capacity) in the procurement processes of IDA-
financed projects. The implementation arrangements for the project will be designed to
compensate for government’s weaknesses and to strengthen its capacity to implement
future development projects.

Program implementation and management structure

46.Program oversight. An inter ministerial steering committee, chaired by the Minister         Formatted: Bullets and Numbering
of Planning and comprising ministers (or their delegates) of finance and sectoral
ministries involved with the project will be responsible for overall project oversight. A
coordination unit will be set up at the Ministry of Planning responsible for overall
monitoring of the project implementation. The project will finance technical assistance to
strengthen the Ministry of Planning and the coordination unit.

Project management. Given the urgent nature of the proposed project, the large number
of activities to be completed within a short time frame, and the limited capacities of the
ministries and other public entities, several options are being considered for the
institutional arrangements for the project execution. These are based on the main
implementation principles of: (a) achieving quick disbursement in an emergency
situation, (b) reaching multisectoral objectives, and (c) maintaining absolute transparency.
Discussions with the government are underway and several alternatives are being
analyzed. It is expected that the appropriate implementation arrangements will be
identified by appraisal. Although agreement between the Bank and the government has
not yet been reached, one option is to consider the proposed project as two subprojects
each of which may be executed separately (under two different government entities).
These would be subproject A (rural development and delivery of social services) and
Subproject B (reconstruction and rehabilitation of critical infrastructure). Each subproject
would have its own financial management system and procurement unit.No need at this
stage




                                            12
Procurement arrangements

Procurement. Particular attention will be given to procurement arrangements for the
proposed EMRP to ensure that the emergency project is executed rapidly, transparently,
and efficiently. Consultant services, works and equipment to be financed by IDA will be
procured according to World Bank procurement guidelines, taking into account the
project’s large size, its quick implementation period, and the need for complete,
unquestionable transparency of operation and implementation.

The government will prepare a detailed project implementation plan covering the
implementation plans of both subprojects, which will be updated and finalized prior to
project launch. The detailed procurement plans for the first eighteen months of project
execution are expected to be prepared for both subprojects prior to effectiveness of the
proposed IDA Credit. Audits of procurement and disbursement of funds of the
government and IDA will be undertaken at regular intervals by internal and external
auditors.

Financial management and audits

Financial management. The financial managers of the implementation units will have
the overall responsibility for management of funds, including managing the special
accounts of the government and the World Bank, recording and maintaining accounting
documentation, and periodically reporting all expenditures for this component. A World
Bank financial management specialist will be part of the next project preparation mission
to assess with the government the existing situation and agree on a financial management
action plan. The government will adopt financial and administrative manuals for the
implementation units, satisfactory to IDA.

External audits. The government will recruit external auditors under terms of reference
(and short list of audit firms) acceptable to IDA. Financial statements of the
implementation units and/or project accounts will be audited every year and include
separate statements for the project operations once the project becomes effective. Audit
reports would be submitted to IDA within four months after the end of each semester.

Special Account. It is anticipated that the project will have two special accounts, one for
activities financed by IDA under subproject A and one for activities financed by IDA
under subproject B. These special accounts, opened in a commercial bank acceptable to
IDA, will be operated in accordance with the Bank’s operational guidelines.

Monitoring and evaluation

Reviews. In addition to intensive supervision by the Bank staff, annual reviews by the
Bank, together with the government and the other involved parties to assess progress in
implementing the agreed activities will be carried out every six months. This will be part
of the donor coordination process. The steering committee (chaired by the Minister of
Planning) through the implementation units (still to be defined) will be responsible for

                                             13
preparing the necessary documentation for the reviews, and planning the review meetings.
During the first reviews, special attention will be paid to assessing the distribution of the
donors’ support to the priority phase of the program and project activities throughout the
targeted provinces to eventually reorient some activities if needed.

Donor coordination

All development partners supporting the implementation of the government’s programs
recognize the importance of establishing appropriate mechanisms for coordinating their
inputs and contributions. The Bank is expected to take the lead in this and in mobilizing
the resources for parallel financing of the priority phase of the multisector rehabilitation
and reconstruction program. Good coordination will help to direct assistance to priority
needs in a timely manner, to prevent gaps or overlaps, to ensure sustainable budget
expenditure planning, and to reinforce their contribution to the policy dialogue. The
government has already suggested that all jointly undertake preparation, appraisal,
supervision missions, semiannual and midterm reviews and, as much as possible,
harmonize procedures for procurement, accounting, financial management, auditing,
monitoring and evaluation and reporting . The proposed project would be IDA’s
contribution to the multi-donor funded priority phase of the reconstruction program.

9.    Social and Environmental Safeguard Policies

The project is expected to be classified as environmental category B because no
subprojects are expected to have significant environmental impacts. The project will
support the rehabilitation of existing infrastructure (railways, roads, bridges, rural tracks,
water supply systems, central electricity stations and power transmission lines, and urban
erosion control systems). No new construction will take place. An environmental
analysis of all activities to be implemented under the EMRP must be completed to the
satisfaction of IDA within six months of the date of effectiveness of the IDA credit. The
terms of reference for this environmental analysis will be discussed and finalized during
IDA’s appraisal mission once the activities to be undertaken are more precisely defined.
Because the project is multisectoral and not all the environmental characteristics of
subprojects are known in sufficient detail at this time, a programmatic process or a
strategic approach for environmental and social assessment (including screening and
categorization, preparation, public consultation, disclosure, review, approval and
monitoring) will be put into place and implemented over the life of the project. Given
uncertainties regarding the location of some activities, and the complexity of Angola’s
environmental and social situation, this approach is designed to ensure that the selection,
design and implementation of all activities comply with World Bank safeguard policies.
Because local capacity for environmental and social management is currently weak, it is
anticipated that an environmental consulting firm will be engaged for a period of three
years to manage and oversee the environmental and social management process, while
providing institutional strengthening and on-the-job training services throughout the
project period. This firm will work closely with the Ministry of Planning and the
implementation units, the Bank, and the ministries and agencies concerned to develop
procedures that will improve activity quality and sustainability through compliance with

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World Bank safeguard policies, while at the same time, being time and cost-efficient, so
as to facilitate subproject planning, approval and implementation.

10. Benefits and Risks

Benefits. The proposed project will provide several important benefits. Most
importantly, it will help prevent the further deterioration of health and loss of life of
people who are living in extreme poverty by increasing food security, delivering health
care and other basic services, restoring water and energy supply services, and improving
public health conditions. It will help revive the economy by bringing down the costs of
transportation, which will increase the competitiveness of goods. It will help to
reintegrate the country by reestablishing transportation links between the country’s
provinces. It will help to reduce poverty among both agricultural producers and
consumers by stimulating agricultural production and reducing costs and time of
transporting food from producers to markets. Over the medium and longer terms, through
capacity building, it will benefit the Angolan people by helping to create an improved
legal and regulatory framework and more stable and effective institutions— critical
conditions for better governance. Finally, it will help lay the groundwork for future
policy and institutional reforms and a future investment program for the country’s
development.

Risks. The risks to the project are high. The program’s and project’s size and complexity
coupled with the macroeconomic constraints of Angola mean that the development,
safeguard, financial, and fiduciary risks are high. Therefore IDA will work closely with
the government and the development partners to ensure the risks are identified and
mitigated appropriately. The major risks are: (a) the peace process fails and conflict
renews; (b) little progress is made in establishing a stable macroeconomic framework; (c)
inadequate progress is made in strengthening governance and transparency, (d) lack of
capacity that impedes timely project implementation; and (e) important financing gap for
the priority phase of the rehabilitation and reconstruction program remains unfilled.

Exit strategy. If progress implementing the peace accords andin ensuring stable,
transparent government with broad-based support is unsatisfactory, IDA, in close
consultation with other development partners and civil society, will review its activities
and consider restructuring, scaling back, or suspending its program. To be reworked

For information, please contact:

The InfoShop
The World Bank
1818 H Street, NW
Washington, DC 20433
Telephone: (202) 458-5454
Fax: (202) 522-1500




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Task Manager
Abdelmoula Ghzala


Note: This is information on an evolving project. Certain components may not be
necessarily included in the final project.




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