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DECISION SUPPORT SYSTEM _DSS_ FOR WR PLANNING BASED ON

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DECISION SUPPORT SYSTEM _DSS_ FOR WR PLANNING BASED ON Powered By Docstoc
					   EGYPTIAN ITALIAN ENVIRONMENTAL
    COOPERATION PROGRAM - PHASE II




DECISION SUPPORT SYSTEM FOR WATER RESOURCES
 PLANNING BASED ON ENVIRONMENTAL BALANCE
                SECOND PHASE




            PROJECT DOCUMENT




                October 2002
TABLE OF CONTENTS
ACRONYMS

1.             EXECUTIVE SUMMARY                                                       4

2.             LOGICAL FRAMEWORK                                                       6
2.1            Diagram of problems - phase II                                          7
2.2            Diagram of objectives - phase II                                        8
2.3            Logical framework - phase II                                            9

3.             BACKGROUND                                                               10
3.1            Origin of the project and its contemporary context                       10
3.2            Outline account of DSSP implementation hitherto                          11
3.3            Activities of other Donors in the water resources
               planning sector in Egypt                                                 14
3.4            Other water-sector related projects of the Italian
               Cooperation in Egypt                                                     15
3.5            Main physical and socio-economic features of Egypt                       15
3.6            Government plans/strategies on environment                               16
      3.6.1       Objectives                                                            17
      3.6.2       Policy directives                                                     17
3.7            Relationship of the program to Government plans/strategies on environment17
3.8            How the program fits into the Italian cooperation strategy               18
4.             PROJECT DESCRIPTION                                                      18
4.1            Purpose and overall objective                                            18
4.2            Specific objective                                                       19
4.3            Output/Results                                                           19
4.4            Planned activities for the extension period
               (Sept. 2001 – Dec. 2002)                                                 19
4.5            Planned activities for Phase II                                          22
4.6            Required Technical Assistance                                            26
      4.6.1    Expatriate experts                                                       26
      4.6.2    Local experts                                                            26
      4.6.3    SRU staff                                                                26

Table 1       - Phase II - Activity-Schedule                                           28
Table 2       - Required Expertise – Phase II                                          29
Table 3       - Required Expertise – Phase II                                          30
Table 4       - Required Expertise – First Year                                        31
Table 5       - Required Expertise – First Year                                        32

4.7            Case-studies                                                            33

5        JUSTIFICATION                                                                 33
6        FACTORS ENSURING THE SUSTAINIBILITY                                           34
7        IMPLEMENTATION                                                                34
                                                                                       2
7.1. Organization and implementation procedures                                   34
   7.1.1. Institutional framework                                                 34
   7.1.2 Organizational Framework                                                 35
   7.1.3 Program Supervision, Co-ordination and Implementation at Central Level   35
   7.1.4 Projects implementation at Executing Agents level                        36
7.2. Mechanisms for financing and implementation                                  37
   7.2.1. Financing                                                               38
   7.2.2. Agreed Consultancies                                                    41
   7.2.3. Operational services                                                    41
   7.2.4. Implementation Arrangements                                             41
7.3. Specificity of DSSP -Phase II                                                41

8    MONITORING AND EVALUATION                                                    44

8.1 The monitoring arrangements                                                   44
8.2 Definition of indicators                                                      44
8.3 Review/Evaluation                                                             44

9    RISKS                                                                        45

10   PROJECT COSTS                                                                45

Table 6 – Tentative Budget Phase II
Table 7 – Tentative Budget Phase II – 1st year

ANNEXES

ANNEX 1 - Expatriate Experts Profiles and Tasks                                   48
ANNEX 2 - NWRC/SRU Staff                                                          56
ANNEX 3 - Responsibilities of EEAA by Law 4/94                                    58
ANNEX 4 - Expected responsibilities of EEAA vis-à-vis of the Program              60
ANNEX 5 - Suggested Composition of the Steering Committee (SC) and
          DSS Project Executive Committee (PEC)                                   62
ANNEX 6 - Terms Of Reference of the Program Coordination Unit                     64
ANNEX 7- Terms Of Reference of UNDP                                               66
ANNEX 8- Terms Of Reference of the Project Management Unit                        70
ANNEX 9 - Comparative advantages offered by UNDP                                  72




                                                                                  3
LIST OF ACRONYMS

CIDA         Canadian Cooperation
DGCD         Directorate General of Cooperation for Development of the Italian Foreign
             Ministry
DMs          Decision Makers
DSSP/DSS     Decision Support System for Water Resources Planning based on
             Environmental Balance Project
EEAA         Egyptian Environmental Affairs Agency
EEIS         Egyptian Environmental Information System
EIECP        Egyptian – Italian Environmental Cooperation Program
IA           Implementing Agencies
MESA         Ministry of State for Environmental Affairs
MWRI-PS      Planning Sector of the Ministry of Water Resources and Irrigation
NAWQAM       National Water Quality and Availability Management
NEAP         National Environmental Action Plan
NWRC/SRU National Water Research Centre/Strategic Research Unit
PCU          Program Coordination Unit
PEC          Project Executive Committee
PMU          Project Management Unit
PSC          Project Steering Committee
SEAP         Siwa Environmental Amelioration Project
TF           Task Force
UNDP         United Nations Development Programme
USAID        United States Agency for International Development
UTL          DGCD-Local Technical Unit of Italian Embassy
WRPA         Wadi El Rayan Protected area




                                                                                    4
1.           EXECUTIVE SUMMARY

The Decision Support System Project (DSSP) has been implemented during the period
March 1998 to August 2001. The project activities have been extended up to December
2002.

The original objectives of the project were:

     (i)      Proposing a methodology for the integration of environmental and socio-
              economic aspects in the water resources planning exercise;
     (ii)     Developing a computer-based tool that multiplies the Decision-Makers (DMs)
              capacity of analysis and evaluation, stimulating the adoption of a wider and
              more integrated perspective in the planning process, as well as fostering the
              multi-actors dialogue; and
     (iii)    Contributing to the capacity-building of the researchers and DMs of the
              concerned institutions. In particular, these institutions are: the National Water
              Research Center (NWRC) as the implementing agency through its Strategic
              Research Unit (SRU); the EEAA (Egyptian Environmental Affairs Agency) and
              the Planning Sector of the Ministry of Water Resources and Irrigation (MWRI-
              PS).

The project has to an extent reasonably achieved its objectives. However, to fully
capitalize the efforts and resources spent, it is proposed the implementation of a second
phase of three years duration.

In specific, it is expected that the project in Phase II will:

     1.       Consolidate the results achieved and ensure the sustainability of the main
              activities undertaken,
     2.       Build upon the experience and lessons learned in implementing the various
              project activities.

The objectives of Phase II of the project could be summarized as follows:

     Overall Objective

To draw water resources policies and plans that are consistent with sustainability ethic and
aim at quality of life improvement, thus avoiding decisions which might have adverse
impact on them.

     Specific Objectives

     -        To refine and disseminate the methodology developed for the environmental
                                                                                             5
         and socio-economic aspects in the analysis of WR scenarios and development
         measures;

  -      To enhance the capacity of the computer-based tool developed (DSS) to
         implement the above methodology;

  -      To contribute to the capacity building of high level technical staff of the
         NWRC/SRU, the MWRI-PS, and the EEAA;

  -      To analyze the effects linked to the adoption of a particular national plan (the
         National Water Resources Plan) for utilization of water resources;

  -      To assess the effectiveness of the DSS by conducting case-study (ies).

The project document details the expected outputs of Phase II of the project as well as
the activities leading to the outputs. The activities planned for the extension period
(September 2001- December 2002) are also briefly presented in the document.




                                                                                       6
2.   LOGICAL FRAMEWORK




                         7
    DSS Project, Phase II - DIAGRAM OF PROBLEMS



                                                 Decisions may be taken which
                                                adversely impact water & environmental
                   EFFECTS                      resources and eventually quality of life




                                          Lack of fully integrated approach in Decision Making
                                                       with regard to WR planning




                1) Insufficient            2) Insufficient             3) Lack of a              4) Lack of
                technical experience in    communication and           comprehensive             participation of stake-
CAUSE           integrated WR              synergy between SRU         flexible tool for         holders in WR
                planning                   and MWRI-PS                 integrated WR             planning process
                                                                       planning




                                                                                                                           8
                    DSS Project, Phase II - DIAGRAM OF OBJECTIVES




                                           Proper decision process for water &
                  END                     environmental resources management
                                          and quality of life improved




                             Relevant information and fully integrated approach in Decision Making
                                        with regard to integrated WR planning provided




        2) Provide adeguate            3) Promote close              4) Establish a              5) Improve
        specialized technical          cooperation between           comprehensive               participation of
MEANS   training in integrated         SRU and MWRI-PS               flexible tool for           stake-holders in WR
        WR planning, helping                                         WR planning                 planning process
        DMs in defining policies



                                                                                                                       9
             INTERVENTION LOGIC                   OBJECTIVELY                       SOURCES              OF     ASSUMPTIONS
                                                  VERIFIABLE                        VERIFICATION
                                                  INDICATORS

OVERALL      Avoid decision which might                                             •     Policies
OBJECTIVES   adversely     impact       water                                       •     Future projects /
             resources and quality of life                                                plans

             (Improve quality of life)
PROJECT      Provide relevant information         •   Degree of use of DSS          •     Ministry       of
PURPOSE      and fully integrated approach            information / results by            Irrigation   and
             in Decision Making with                  the relevant institutions           Water Resources
             regard to integrated water               Ministry    of     Water
             resources management                     Resources and Irrigation
                                                      and      Ministry      of
                                                      Environment (low/high)
RESULTS      1.    Provided         adequate      •   1. Degree of satisfaction     •     Output of the         Mandatory commitment to
                   specialized      technical         of DMs and other                    national      case-   transfer know-how from
                   training in integrated             Institutions dealing with           study                 Italian side (i.e. ET&P and
                   water           resources          integrated           water    •     NWRC staff 's         WR Planner) to Egyptian
                   planning, helping DMs              resources planning (low,            other     technical   side
                   in defining policies               high)                               output
             2.    Promoted             close     •   2a. Degree of active          •     Specialised
                   cooperation       between          involvement of NWRC-                magazine
                   SRU and MWRI-PS                    SRU in integrated water       •     Conference       &
             3.    Established              a         resources planning (low             Seminars
                   comprehensive flexible             – high)                             proceedings
                   tool () for water              •   2b. Number of relevant
                   resources planning                 publications,       papers,
             4.    Improved participation             technical reports
                   of stake-holders in water      •   3. Degree of utilization
                   resources        planning          of DSS by MWRI-PS
                   process                            technical staff
                                                  •   5.       Number         of
                                                      participants             to
                                                      Workshops              and
                                                      Seminars
ACTIVITIES   1.      Promoting use of DSS         •   1. Number of DMs and
                    among DMs and other                other Institutions
                    Institutions dealing with          involved
                    WR planning                   •   2. Time dedicated to
             2.             Develop common            common research
                    research         activities       activities by SRU and
                    among SRU technical               EEAA and MWRI staff
                    staff and the staff from      •   3. Number of man/
                    MWRI and EEAA                     months experts
             3.                  Refine           •   4. Number of man/
                    architecture           and         months of project staff
                    calibration.    Complete      •   5. Number of papers/
                    designing     of     those        reports produced              Progress         reports    DMs using DSS tool in
                    elements not completed                                          approved by the Steering    integrated WR planning
                    in Phase I.                                                     Committee
             3.a   refinement-calibration of
                   models
             3.b   refinement of Graphical
                   User Interface
             3.c    utilities
             3.d   up-grading of model base
             3.e   field data collection/
                   surveys
             3.f   national case -study
             3.g   α-version of DSS
             3.h   analysis of WR plans
             4.             Organization and
                    implementation           of
                    Workshops              and
                    Seminars

                                                                                                                Preconditions:
                                                                                                                •     Maintain SRU as
                                                                                                                      implementing
                                                                                                                      structure
                                                                                                                •     Guarantee
DSS Project, PhaseII - LOGICAL FRAMEWORK                                                                              permanence         and
                                                                                                                      sustainability of the
                                                                                                                      project
                                                                                                                •     Promote        synergy
                                                                                                                      between SRU and
                                                                                                                      MWRI-PS

                                                                                                                                          10
3.         BACKGROUND
3.1       Origin of the project and its contemporary context

The proposal for a Phase II of the “Decision Support System for Water Resources
Planning based on Environmental Balance” project (hereinafter referred as Decision
Support System Project/DSSP) is related to the program under implementation titled
“Institutional support to the Egyptian Environmental Affairs Agency (EEAA) to improve
planning capabilities for rehabilitation and protection of natural and cultural
environmental resources and implementation of pilot-projects within the framework of
Egypt’s NEAP activities”. The program was agreed through the Memorandum of
Understanding signed on June 18th, 1998 between the Government of the Italian Republic
(GOI) and the Government of the Arab Republic of Egypt (GOE).

The Program has been implemented within the framework of donors initiatives aimed to
assist the implementation of the National Environmental Action Plan (NEAP), with the
overall objective “to contribute to the protection of Egypt’s natural and cultural
resources”, and the following immediate objectives:

1) To strengthen Egyptian capacities to analyse, plan and implement adequate measures
   for the conservation and rehabilitation of natural, cultural and man-made
   environments;
2) To enhance current strategies and ways to protect and expand available natural
   resources base, with the aim to leading to higher productivity, reduced migration and
   improvement of the living conditions in rural areas;
3) To contribute to reinforce the role of EEAA, as the central co-ordinating and
   supervising body, and its partners institutions for the protection and promotion of the
   environment.

To achieve these objectives, the following specific activities have been implemented,
subsequent to proper identification and preparation:

      • An applied planning scheme for the water sector, adopting the Decision Support
        System (DSS) as a key instrument and an environmental balance methodology,
        aimed at featuring a holistic strategy for the sustainable use of Egypt's water
        resources “Decision Support System for Water Resources Planning based on
        Environmental Balance (DSS)”,
      • Two pilot projects within the context of Water and Land Resource Conservation
        Section of the NEAP, and under the framework of Egypt’s biodiversity
        conservation strategy and the plan of a national protected areas system. Namely
        these are:
        -    Establishment of the Wadi Rayan Protected Area (WRPA) in Fayoum oasis
        -    Siwa Environmental Amelioration Project (SEAP)
     • A project aiming at better preserving and managing cultural heritage assets in
        Egypt: “Enhancement of the organizational and planning capabilities to preserve

                                                                                       11
          and manage Cultural Heritage Assets of Egypt”.

      •   Establishment of a joint Program Coordination Unit (PCU) with the task to assist
          the Donor and the Recipient Government, including the Program Steering
          Committee, in coordinating the Program and its components,

The execution of these projects has been ongoing from 1998 and the completion dates
have been set at early 2003.

A Program Review Mission, jointly conducted by the Directorate General of Cooperation
for Development (DGCD) of the Italian Foreign Ministry and EEAA, was held during
June-July 2000 to review the progress achieved, the problems encountered and the
lessons learned, and to make specific recommendations regarding future activities.

Following the positive assessment made by the Mission, the EEAA and the Italian
Cooperation decided to move forward with the design of future activities. A Task Force
(hereinafter named TF), headed by one Egyptian expert seconded by the EEAA and one
Italian expert recruited by the DGCD, was constituted with the purpose to carry out the
preparatory work for Phase II of the Program.

 This was performed by the TF from November 12th to December 21st, 2000 on the basis
of the outcome of the Program Review Mission, the guidelines received from EEAA and
DGCD/UTL and in close cooperation with the key stakeholders. The TF produced a
profile of the proposed components of Phase II (Project Concept Papers), with the
estimated budgets and the logical frameworks.

The Program Steering Committee, in its meeting held on 17th February 2001, approved
the overall Program of Phase II. Request for financing was forwarded by the competent
Authorities to the Italian Government by August 2001.

During the bilateral discussions held between the Italian and Egyptian Governments on
February 2002, the financing of Phase II of the Program was agreed for an Italian
contribution of about nine millions Euro. The DSSP was approved for an estimated
budget of Euro 1,744,000, out of which Euro 985,750 to be funded by the Italian
Government.

The present Project proposal is made on the grounds of the agreed project document, the
observations and comments received and the relevant lessons and experiences. It is worth
to mention that the final formulation has been completed by the TF after having verified,
discussed and finalized with NWRC, EEAA and partner institutions all the elements that
still needed clarification.

3.2       Outline account of DSSP implementation hitherto

The dominant approach for water resources planning in Egypt is characterized by trying
to develop local resources (groundwater, re-use of drainage and domestic waste-waters,
                                                                                    12
sea-water desalination, flash floods and rain harvesting) and to improve efficiency of
their use. In the recent years, together with acceptance of the sustainability concept, the
awareness that the key issue for development was no more the availability of resources,
but mainly the improvement of quality of life, became the driving mechanism for
development planning; this is particularly true in water resources planning, since water is
fundamental for preserving and improving the quality of life. Recently some directions
for further improvement in the planning exercise have been enlightened, such as: (i)
considering water a limiting factor of economic growth; (ii) taking into account
uncertainties (hydrological stochasticity and future demand); (iii) taking into account
environmental and socio-economic aspects; (iv) taking into account political issues
(strategies, restrictions), but all these elements need to be harmonized through more
sophisticated decision support tools to be used by planners.

During the planning process, two main elements are usually neglected or not adequately
considered:
   1) While designing actions aimed at solving the problems of the criss-cross
       relationships, the conjunctive effects are not considered. More precisely, the fact
       that the huge investments needed to implement the whole set of works impact the
       economic setting of the country and push to try to recover at least part of the
       expenses through water pricing policies, implies a financial-economic impact on
       significant sectors of the population. As a consequence, actual implementation of
       plans is jeopardized, and the foreseen additional availability of land, agricultural
       production and employment are likely not to be fulfilled (link macro-economic ->
       socio-economic-cultural). Moreover the enhancement in the re-use of drainage
       water (polluted and saline) may imply the loss of productivity of the soil-crop
       system (link technical-administrative -> environmental -> productive -> socio-
       economic), while the improvement of irrigation efficiency implies a reduced
       availability of drainage water and weaker recharge of the aquifer (same link as
       above). Finally the development of aqua-culture, legally allowed only with
       drainage water, may lead to bio-accumulation of toxicants and human health
       hazard (same link as above)

   2) It is assumed that the set of actions aimed to the solution of identified problems is
      good as such, without further analyses. This contradicts the internationally
      recognized need for applying a Strategic Impact Assessment (i.e. an
      Environmental Impact Assessment applied also to plans); the evaluation should
      indeed be based on an integrated approach, not looking just at the technical
      suitability of the solution, or at its economic efficiency, but at all those aspects
      which allow, as a whole, to judge whether the plan is 'good' or not (or rank
      alternatives). The evaluation should also ensure that the socio-economic-cultural
      development consequent to the plan be really 'sustainable', which means, at the
      very end, that allows for a steady improvement of the quality of life of the social
      groups involved. Therefore some questions/problems remain still unattended: i.e.
      (i) how to consider the inter-relationship between water quality, socio-economic
      setting and behavioral attitude of the population, country macro-economic setting,
      hydrology, physical layout (new canals, new reclaimed lands, etc…) and
                                                                                        13
       demography; (ii) how to get a holistic view (environmental balance) that allows
       better decisions making; (iii) how to support the evaluation of actions consistent
       with the framework of sustainable development; (iv) and finally, how to apply a
       methodology for the integration of environmental and socio-economic aspects in
       the analysis of water resources scenarios.

To respond to the above-mentioned needs, the Italian Cooperation decided to face the
challenge and to implement the DSSP under the EIECP through the financing of the
Directorate General of Cooperation for Development (DGCD).

The DSSP has pursued the following objectives: (i) proposing a methodology for the
integration of environmental and socio-economic aspects in the water resources planning
exercise; (ii) developing a computer-based tool that multiplies the Decision-Makers
(DMs) capacity of analysis and evaluation, stimulating the adoption of a wider and more
integrated perspective in the planning process, as well as fostering the multi-actors
dialogue; and (iii) contributing to the capacity-building of the researchers of the
concerned institutions. In particular, these institutions are: the National Water Research
Center (NWRC) as the implementing agency through its Strategic Research Unit (SRU);
the EEAA, and the Planning Sector of the Ministry of Water Resources and Irrigation
(MWRI-PS).

This project is not intended to provide solutions, but rather the technical-scientific
capability to assess and evaluate possible alternative solutions in a systematic fashion.
Rather than adding 'vertically' a bit of knowledge, by getting more insight in some
particular aspect, the idea is to broaden the understanding of the Egyptian system
'horizontally', by integrating the knowledge and tools already available through a quite
innovative cross-sectoral and multidisciplinary view.

Mediterranean Agronomic Institute (MAI-Bari) participates to the project, through an
agreement signed with NWRC, providing technical assistance, mainly by recruiting the
required expatriate experts. A contract has also been signed, upon request of SRU,
between MAI-Bari and ET&P-Bologna to provide the basic software, i.e. AVS-Express,
the Data Management Expert and the System Analyst, as well as some training courses to
SRU staff.

Now, few months from project completion, it is reasonable to state that the main targets
will be achieved: (i) a methodology for the integration of environmental and socio-
economic aspects in the analysis of WR scenarios and development measures has been
finalized. This methodology and the informatic tool, i.e. the DSS, are fully appropriate to
meet the scope of solving present planning activities problems in Egypt; they are
definitely innovative and stand at the highest technical-scientific level in the international
panorama; (ii) the design of the models and their organization in a simulator capable of
predicting the effects of possible development measures and scenarios, and the
implementation of the computer-based tool (DSS) capable to cast the proposed
methodology, as well as the setting-up of an integrated GIS-DB system, have been also
implemented; (iii) a good level of technical and computational capacity of the
                                                                                           14
NWRC/SRU staff has been built-up.

Main constraints faced and lessons learned were: (1) data collection: as a matter of fact a
lot of difficulties have been encountered in the data-collection campaigns. This is the
main reason why during the first workshop, in June 1998, the decision was taken of re-
orienting the project from a data-driven modelling approach to a conceptual approach.
Data collection needs to be improved, and the procedures for their collection shall be
enhanced; (2) acquisition of the existing mathematical water resources planning models;
some of them did not fit with the specific requirements of the DSSP, while others were
not really operational. Ownership of the suitable existing models was a critical issue, that
forced the project staff to formulate their own simplified versions of these models; (3)
coordination among other international cooperation projects working in the same field
of WR planning was lacking, affecting negatively the acquisition of data and a proper
useful debate for development of water management alternatives and planning tools; and
(4) EEAA and MWRI-PS have been only marginally involved, due to internal constraints,
in the development activities and no training has been addressed to them. For phase II is
essential to review the mode of cooperation between SRU and these agencies by signing
appropriate protocols, and also to define who will be the final user of the DSSP.

3.3       Activities of other Donors in the water resources planning sector in Egypt

Other Donors are very active through financing a number of projects in the WR planning
sector, namely the Canadian Cooperation (CIDA), the Dutch Cooperation (Development
Division) and the American Cooperation (USAID). In particular:

      •   CIDA is implementing the following projects:
      -   NAWQAM (National Water Quality and Availability Management), under the
          umbrella of NWRC. The goal is to develop an effective and coordinated national
          system for sustainable WR management. This long-term objective is shared with
          other Donors initiatives that also focus on various aspects of water management.
      -   EEIS (Egyptian Environmental Information System), under the umbrella of
          EEAA. The goal is to enhance the capacity of EEAA in using environmental
          information for decision-making through the development of an environmental
          information system.

      •   DUTCH Cooperation has created, under the umbrella of the MWRI, a project for
          the coordination of its own activities, the Advisory Panel Project on Water
          Management and Drainage (APP). The main projects implemented are:
      -   within the MWRI-PS; the National Water Resources Plan, which describes how
          Egypt will safeguard its water resources. It will constitute also an input for the
          preparation of the National Development Plan (2002-2007).
      -   with institutes of the NWRC:
              the Nile Basin Capacity Building Network (NBCBN), within the NWRC/HRI
              (Hydraulic Research Institute).
              two projects: (i) the Drainage Research Project - Phase II and (ii) the
              Monitoring and Analysis of Drainage Water Quality, within the NWRC/DRI
                                                                                             15
             (drainage Research Institute).
             the Satellite Image Data Set for Inventory of Land Use and Groundwater
             Development Project, within the NWRC/GRI (Groundwater Research
             Institute).

      •   USAID is implementing, under the umbrella of MWRI, the Environmental Policy
          and Institutional Strengthening Indefinite Quantity Contract - Water Policy
          Reform Program (EPIQ/WPRP), which is part of a larger intervention with the
          Ministry of Agriculture (MOA), and has the objective of increasing the global
          efficiency and productivity of Egypt's Nile water system. This project was
          supposed to be completed in year 2000, but has been extended.

3.4       Other water-sector related projects of the Italian Cooperation in Egypt

In the recent years the interest of the Italian Cooperation has progressively grown
towards the financing of projects related to water sector and aiming at the safeguard of
the environment.
Apart from DSSP, which is a component of a larger environmental program including not
only the water-planning sector but also the recovery of natural resources and the
safeguard of cultural heritage, Italy is financing two other projects pertaining to WR
planning: the first one is the 'Nile DST ', implemented through FAO, which is aiming at
the creation of a Decision Support Tool for the entire Nile Basin; and a second one, co-
financed in the frame of the Euro-Mediterranean Partnerariat, aiming at the creation of
the National Focal Point for EMWIS (Euro-Mediterranean Water Information System)
under the MWRI.
Among other projects in the water sector in Egypt financed by the Italian Cooperation, it
is worth to mention:
    - Esna Dam;
    - Waste Water Treatment Plant of Gabal El Asfar;
    - Telecontrol System of Cairo Water Supply Network;
    - Hamul Water Treatment Plant.

3.5       Main physical and socio-economic features of Egypt

Egypt covers a land area of about one million square kilometres, of which about 3 percent
is under cultivation. Permanent vegetative coverage consisting of trees, shrubs and lawns
is in the range of 1.6 percent. Roads, parks, building and other public utility facilities
occupy about 0.4 percent of the land. The remaining 95 percent of the area is mainly
made up of desert, semi-desert areas, hills and sand dunes. Rapid urbanisation has exerted
a large claim on land available for agriculture: since 1952 some 378,000 hectares (ha) of
the fertile Nile Valley lands has been lost to urbanisation and industrial growth: urban
areas have doubled over the last 20 years. The annual rainfall in most parts is less than 50
mm; the river Nile provides 97 percent of the water resources.

Egypt is the second most populous country in Africa, with 65 millions inhabitants. The
population growth rate declined from 2.8 percent in 1976 to 2.1 percent in 1999.
                                                                                    16
Egypt is classified as a middle-income country, with a Gross Domestic Product (GDP) of
$ 89 billions and GDP per capita of $ 1,529. The economy is diversified: agriculture,
which employs 28 percent of the population and constitutes about 17 percent of GDP;
trade, finance and insurance represents about 21 percent of GDP; industry constitutes
about 18 percent of GDP; energy about 7 percent of GDP; transport, tourism and
communication are important economic sectors. The economic reform adopted is
transforming the country from a central, state controlled economy into a market driven
economy. GDP has grown five per cent a year for the years 1994-1999; inflation has
gradually declined from 21 percent in 1991 to less than four percent in 1999. However,
despite the relatively successful Economic Reform and Structural Adjustment
Programme (ERSAP) embarked upon since 1987 achieving significant progress at
macroeconomic level, inadequate wealth is being generated to offset population growth,
to effectively reduce poverty and unemployment. In fact, the overall impressive
economic growth recorded - the per capita gross national product (GNP) grew from US$
660 in 1993 to 1,290 in 1998 (1 US$= LE 3.37) – is also characterised by its uneven
distribution: 34% of the urban and 18% of the rural population fall below the poverty
line (defined at LE 697 and LE 438 respectively) and 17 per cent of the urban population
and 8 per cent of the rural population are considered to be living below the ultra poverty
line (in 1994, LE 527 for urban and 356 LE for rural population). Women are particularly
hit by poverty.

Egypt is classified by FAO as a low-income, food-deficit country (LIFDC). Food
insecurity and poverty remain major issues: though per capita food availability is
maintained satisfactorily, access to food is uneven and malnutrition is widespread; about
20 percent of the population lives on less than the recommended minimum calories
requirement of 2,431 kcal a day. In 1999 the country imported 7.9 million tons of grain
or 50 percent of its needs.

UNDP’s 1997 Human Development Report ranks Egypt 109th out of 175 countries in its
gender-related development index. Illiteracy is still quite high, estimated at 45 percent.

Officially estimated unemployment is rated at 8%, with over half a million-employment
job seekers entering the labour market annually, out of which youths of age between 15
and 24 make up 74 percent of the unemployed. Egypt is nevertheless in a strong position
to launch a job creating initiative and the International Labour Office (ILO) has been
assigned to prepare the framework.

3.6    Government plans/strategies on environment

The principal challenge underlying Egyptian Environmental Policy is to manage the
scarce common resources of water and cultivable land more effectively to meet the
growing needs of the population, which is placing enormous pressure on agricultural
production and on the non-renewable and limited natural resources. Thus a balance shall
be achieved between the needs of a progressing economy and the protection of natural
resources, while addressing the impact of current environmental problems.

                                                                                       17
Within the above contest, the Ministry of State for Environmental Affairs (MSEA) and its
executive arm, the EEAA, have defined the objectives and policy directives as follows:

3.6.1    Objectives

Strategic objective: to introduce and integrate environmental concerns relevant to the
protection of human health and management of natural resources into all national
policies, plans, and programs.

Medium-term objective: to preserve Egypt’s natural resources, biodiversity, and the
national heritage within the context of sustainable development.

Short-term objective: to reduce current pollution levels and minimise health hazards to
improve the quality of life in Egypt.

3.6.2    Policy directives

•     Foster partnerships, co-ordination and collaboration among the different segments of
      Egyptian society at national level, other organisations and the private sector, and the
      revision of the 1992 NEAP based on a gender-sensitive, participatory development
      approach.
•     Foster partnership at the bilateral, regional and global levels that support transfer and
      use of environmentally friendly technology.
•     Enforcing Law 4/1994 for the protection of the environment, and Law 102/1983 for
      Natural Protectorates and all other environmental legislation
•     Develop and upgrade Egypt’s 21 natural protectorates and protect biodiversity, in part
      by encouraging the sustainable development and management of protected areas,
      mobilising local participation to support their protection, promoting eco-tourism and
      sustainable tourism initiatives, and implementing the national Strategy for
      Biodiversity.
•     Support institutional strengthening and capacity building at central and regional levels
•     Support sustainable environmental management systems by adding an environmental
      dimension to large-scale national projects and preparing environmental action plans
      for Egyptian Governorates.
•     Integrate the use of market-based instruments into the practice of environmental
      protection, including customs duty exemptions for pollution-abatement equipment
      and preferential terms on the sale of land for use in environmentally sound projects.

3.7      Relationship of the program to Government plans/strategies on environment

The principal objective of the Egyptian-Italian cooperation in the environmental sector is
to strengthen and improve the capacity of the EEAA and its partner institutions in
addressing environmental issues in an effective manner through the execution of specific
interventions in the sectors of nature protection, biodiversity, sustainable development,
solid waste management, legal framework, and protection of historical and cultural

                                                                                            18
heritage. This objective is totally consistent with the new NEAP (2002-2017).

Environment is a field that cuts across the activities of all ministries and institutions,
public and private. A successful integration of environmental dimensions in relevant
national policies, plans, programs, projects and practices, requires close cooperation with
all stakeholders.

It is expected that addressing priorities in close association, keeping roles and
responsibilities of stakeholders well defined, as it is the case of the program under
consideration, it will produce added value results by means of reinforced synergies and
integrated approach.

The information generated by different program’s components, the multidisciplinary
expertise involved, both expatriate and local, and the links established among key
governmental and non-governmental players will likely provide grounds to stakeholders
for expanding the achieved results towards further opportunities and challenges,
strengthening common interests, encouraging commitments and minimising conflicts.

3.8       How the program fits into Italian cooperation strategy

Since the beginning, Italy supported Egypt in launching the environmental plan. All
activities undertaken are consistent with present priorities of Italian Cooperation. In
particular, environment is an interdisciplinary subject on which the different prevailing
fields of action characterising the general Italian strategy of the cooperation to
development are represented. Namely: (i) strengthening the institutions, (ii) strengthening
the management capacity for natural resources, and (iii) intervening on preventing,
halting and rehabilitate the environmental degradation.

Therefore the aim of the program and its objectives are totally consistent with the
mandate of DGCD.

4.        PROJECT DESCRIPTION

The DSSP – Phase II, of three years life span, is based on the following principles:

      •   Consolidate the results achieved during the first phase and ensure the
          sustainability of each project and its main activities in reaching the program
          objectives;

      •   Build upon the experience and lessons learned in implementing the various
          project activities during the first phase.

4.1   Purpose and overall objective
Purpose
To draw water resources policies and plans that are consistent with sustainability ethic
                                                                                        19
and aim at quality of life improvement, thus avoiding decisions that might have adverse
impact on them.

Overall objective

      -   To put the DSS in condition of actually supporting the policies and decision
          making process by providing useful and reliable information;
      -   To gain the broadest number of researchers, policy-makers and decision-makers
          to actually use the DSS, by rising awareness and knowledge about its capabilities.

4.2       Specific objectives

The specific objectives may be summarized as follows:

      -   To increase the level of awareness and consensus about the capabilities of the
          methodology and tool developed since now, by disseminating the concepts and
          ideas developed and implemented in the first phase of the project;
      -   To refine and disseminate the methodology developed through an open discussion
          with policy-makers and other researchers in Egypt;
      -   To get Egyptian technicians actually mastering the DSS , through an appropriate
          transfer of know-how and scientific technical training;
      -   To refine and strengthen the capabilities of the prototype DSS by improving the
          interfaces ant its key-functions;
      -   To calibrate the models representing the Egyptian Water Resources and
          associated Socio-economic and Environmental System to an extent sufficient to
          use their output for planning purposes;
      -   To assess the effectiveness of the DSS by conducting case-studies;
      -   To contribute to the capacity building of high level technical staff of the
          NWRC/SRU, the MWRI-PS, and the EEAA.

4.3       Output/Results

1. MWRI will be provided with a methodology and a tool that facilitate the process of
   drawing sustainable policies for management of water resources. Participation of
   stakeholders in the water resources planning process will be strengthened.
2. Some technical gaps of NWRC/SRU in dealing with integrated water resources
   planning will be removed.
3. An efficient Data Base filled with reliable data will be obtained, to the benefit of all
   the interested institutions.
4. The methodology will be proved effective. The interested decision-makers will utilize
   the results from the case studies.
5. A stronger coordination among all the projects dealing with water resources and
   being implemented by other cooperation agencies (CIDA, USAID, Dutch) will be
   obtained.

4.4       Planned activities for the extension period (Sept. 2001 – Dec. 2002)
                                                                                         20
Under the framework of the extension granted to the Program, a first extension period
from Sept. 2001 to June 2002 was approved by the Steering Committee on July 2001, to
allow mainly refinement of the DB queries and interfaces and the DSS beta-version,
further data acquisition and storing into the DB, and reviewing of indicators.

The activities listed hereunder should be completed before the Phase II starts. It is
therefore assumed that the second phase will build upon these achievements:

   -   Identification and selection of high-level researchers and technicians that will be
       involved in the know-how transfer and training process;
   -   Dissemination and open discussions to identify strengths and weakness in the
       methodology and the prototype;
   -   Data acquisition;
   -   Storing data into the DB (raw data);
   -   Refinement of tools for transforming raw data into model data;
   -   Refinement of DB queries and interfaces;
   -   Correction-completion of GIS maps, including the SU and network maps for the
       national case study to be identified;
   -   Testing of beta-version and identification of needs of further development and
       specification of new functions required (what should it and how....);
   -   Preparation of a document where, for each model, all the main features (purpose,
       input, state, output, base information), key ideas, assumptions and limitations,
       hints for further development, are collected systematically;
   -   Design of core utilities to be developed in the Phase II.

Part of the activities planned in the first extension period (up to June 2002) have been
completed, such as the work on the GIS maps and the reviewing of the selected indicators
(more indicators might be selected in the future according to the availability of new data),
while the remaining will be until the project completion, such as the Data collection.

Following to the Final Workshop held in March 2002, a further extension period, from
July to December 2002, has been approved by the Steering Committee in its meeting of
3rd April 2002.

The main activities which will be developed during this second extension period (July-
December 2002) are the following:

       •   Data acquisition. The data gap for running the system and calibrate models
           has been identified. The list of missing data and sources is available to allow
           their collection during this extension period.
       •   Development of an User's Interface to the EWRSES aimed at describing the
           topological units and inputting the relevant data. This activity has been
           deemed necessary and of first priority as the prototype EWRSES developed so
           far requires the definition of several topological units (Spatial Units, stretches,
           reservoirs, etc…) each of which include many different nodes and connecting
                                                                                           21
    arches. In the present version the description of these topological units is first
    drawn on paper and successively the data are inputted on Excel files. The
    present experience, which relates to only 4 Spatial Units (in the final version
    the Spatial Units will be 40), brought to the convincement that to enhance
    operability a graphical and interactive tool has to be developed, being
    necessary to verify the data inserted into the system graphically and
    numerically. This is considered an essential need, since a great effort is
    required to guarantee the coherence of the data for any simulation of future
    scenarios and actions through the DSS.

    The tool will be developed using one of the most recent object-oriented
    languages (Visual Basic, Delphi or others) to be identified as the most
    appropriate. A simulation package, known as WEAP and developed in Delphi
    language, is already available in the market to perform economical and water
    quality assessments of proposed plans and/or actions, but unfortunately this
    package results inadequate to the scopes of the EWRSES and moreover does
    not allow any link neither to a DB nor to a GIS. Nonetheless, it represents an
    interesting example for describing problems and imputing data, and will be
    taken as a guideline for the development of the tool.

    The said Graphical Water resources Interface (GWI) tool will eventually
    allow for:
    - The graphical description of the topological units;
    - The graphical description of their links;
    - The graphical description of the different nodes within a topological unit;
    - The graphical description of the different connecting arches within a
        topological unit;
    - The data-entry via pop-up menus;
    - The coherence verification of the entered data;
    - The storage of the data in the DB, ready to be used by the EWRSES.
    The interfaces and the query operations shall be improved in order to facilitate
    running of any single model and obtain proper reporting.

•   GIS. The work on the maps, including the Spatial Units (SU), will be
    completed within the extension.
•   Indicators. The reviewing of the indicators selected and the refinement and
    definition of new ones have started, to be continued in this extension period
    and the second phase.




                                                                                   22
4.5       Planned activities for Phase II

      •   Up-grading informatic implementation

      -   Transfer of current Data Base into more suited informatic environment and
          programming language;
      -   Verify feasibility of transferring AVS interface into a more suitable easy-to-
          manage environment;
      -   Translation of models codes accordingly.

      •   Refinement-calibration of simulation-decision models and upgrading of model
          base

      These models are listed hereunder:
      1) Socio-Economic setting, i.e. determines global socio-economic outputs of WR and
          agricultural sectors, assess farmers and fishermen income by performing a
          financial analysis, and assess farmers' nutritional intake on the basis of income
          (this model includes the demographic model). Determines urban and rural
          population, urbanized land, and land tenancy based on population growth and
          migration flows;
      2) GW_Qual, i.e. the simulation model that describes the water quality evolution in
          shallow and deep aquifers all over Egypt;
      3) Net_sim, i.e. the model simulating the allocation-distribution of water in the
          surface network, by performing monthly a (static) water balance including the
          interaction with groundwater. (status: reviewed by SRU and being implemented);
      4) Agro_econ, i.e. the simplified Agro-economic model which provides yearly the
          cropping pattern (status: to be reviewed by SRU);
      5) Nasser_pol, i.e. the decision module which represent the real-time (monthly)
          management of lake Nasser (status: to be reviewed by SRU);
      6) Nasser_sim, i.e. the simulation model of lake Nasser (status: reviewed by SRU
          and implemented);
      7) W_Planner, i.e. the decision module which allocates, at the beginning of each
          year, the available water to the spatial units (status: reviewed by SRU and to be
          implemented);
      8) Health, i.e. the static, expert based model that provides the value of the indicators
          for the health component of the quality of life indices. The infection component
          has been completed, while the risk component has been suspended for the time
          being;
      9) Yield & Soil Loads, i.e. the model computes on yearly basis crop yields, livestock
          derived non-processed yields (meat, milk) and up-dates soil state. In addition, it
          computes non-point pollutant loads to environment;
      10) Administrative Setting, i.e. transforms policy-like Development Measures into
          model operational variables, and updates the set of "soft" variables characterizing
          the administrative setting;
      11) GW_Quant, i.e. the simulation model that describes the water storage evolution in
                                                                                           23
    shallow and deep aquifers all over Egypt, according to water exchange flows with
    the surface network.
12) Layout, i.e. the model representing the time changes occurring in the physical
    structure of the Egyptian Water Resources and related Socio-economic and
    Environmental system (EWRSES), according to the development measures
    foreseen in a National Water Resources Master Plan (NWRMP) alternative and
    given a Scenario;
13) End_Loads, i.e. the module that computes the total loads of pollutants reaching
    the different sinks (e.g. coastal lakes, drainage network, etc);
14) Lakes, i.e. the simulation model that updates the water quality state of all lakes in
    Egypt;
15) Net_Qual, i.e. the simulation model that updates the water quality state of the
    surface water resources system (irrigation and drainage networks).

Two models were held for further development:

16) Ecosystems, i.e. an expert-based model representing the environmental quality of
    aquatic ecosystem and related fishery;
17) Macro-economic, i.e. an expert-based model representing the link amongst
    macro-economic performance of EWRSES, as computed by the previous set of
    models, such as import-export, governmental net expenditure, employment and
    the gross national product (GNP). This link is required to close the loop with the
    GNP guessed as a scenario variable through iteration until consistency is reached.

The work to be done for the calibration is listed hereunder:

-   Identification of problems
-   Design of calibration experiment
-   Collection of specific data
-   Pre-analysis and validation of data
-   Preparation of data files
-   Model calibration exercises, including the comparison with the output of existing
    specific models (e.g. finite differences ground water models, or soil salinity
    model)
-   Interpretation of results and design/formulation of model modifications
-   Possible modification of model formulation and codes
-   New trials
-   Validation

The work to be done for the upgrading of model base (both simulation models and
complex evaluation indices) is:

-   Formulation of algorithm/model
-   Implementation
-   Testing
-   Calibration and validation
                                                                                      24
Target 1: Ecosystem model (fish productivity and ecosystem quality for nature
          conservation)
Target 2: Ecological Footprint index for environmental sustainability

The following additional activities will be done, depending on availability of the
budget

-   Extended cost-benefit analysis for economic efficiency
-   Macro-economic model

•   Graphical User Interface (GUI) refinement

-   Design
-   Implementation

Target 1: System schematizer (allows the modification of the system topology –
          main network, SU internal nodes, plants, resources, users, links -; the
          direct input of data for model variables; the use of the consistency
          checker)
Target 2: Development Measures editor
Target 3: Case manager (interface to create a Case as a collection of Scenarios,
          Development Measures and Initial state and Base information in order to
          run models for analysis, calibration, validation, or to simulate the effects
          of a set of WRPlans alternatives and compare them)
Target 4: Evaluation manager (visualizer of indicators at different aggregation
          stages, at the three levels of evaluation; specification of preferences for
          aggregation of indicators, Multicriteria Analysis) - after development of
          aggregation algorithm -
Target 5: DB management interface (menus to input/retrieve data and to manage
          queries)
Target 6: Generic minor improvements

•   Utilities

-   Design, implementation and test

Target 1: Consistency rules checker empowerment (algorithm that checks
          systematically the fulfilment of part or all consistency rules including
          topology). New rules have to be appended and implemented
Target 2: Case generator refinement (pre-processor to create models-data-files –
          state, base, DMs, Scenarios- as needed to run a simulation with a single
          model, or a set of models by starting either from raw-data, or from model
          data. Includes knowledge of model scheduling, pre-processing to create
          inputs –aggregations, off-line run of some models, run of Investment
          dynamics algorithm and application of Consistency rules checker. Note
                                                                                25
            that the basic module is already implemented, but needs some refinements,
            in particular in relation to the investment dynamics and the link between
            DB and GIS)
Target 3:   General aggregation algorithms (algorithms needed to pass from model
            outputs to indicators; to deal with spatial, temporal, uncertainty
            dimensions; to perform ad hoc aggregations of indicators into indices –e.g.
            from social security and food self-sufficiency to Security, to aggregate
            Quality of Life indicators)
Target 4:   Refinement of filters (tools to transform raw-data into models-data)
Target 5:   Improvement of the organization of DB/GIS/Models relationship (all the
            operations made on DB data should not affect the original data unless
            explicitly asked; data should be organized according to “case studies” with
            an explicit link with the spatial schematization adopted. The whole state
            trajectory – models state vector and outputs – should be stored in the DB
            to allow for flexible analysis
Target 6:   Output Analysis Support Tool (OAST): (a kind of simple expert system
            that tracks the dependency of each model output from other variables in
            order to render easier the identification of the cause for an observed effect
            or behavior)

•   Surveys

Target 1: Socio-economic inquiries for assessment of QoL preferences (in
          representative locations throughout Egypt)

•   Acquisition of Development Measures and WR Plans

Target 1: Acquisition of WR Plans proposed by MWRI-PS (i.e. Dutch project, others)
Target 2: Interaction with Decision Makers (to refine Scenarios, Development
          Measures, Indicators and Indices)
Target 3: Modifications of interfaces and models, upon needs.
Target 4: Up-dating of data
Target 5: Generation of Cases (scenarios, DMs, base information, state)

•   National case study

Target 1: Review/completion of model data base (DMs, Scenarios, Base
          information, State) by applying the consistency rule checker and filters)
Target 2: Simulations
Target 3: Analysis of results (interface to support the run/testing of single model -
          test of simulator)
Target 4: Identification of problems/needs/mistakes




                                                                                      26
      •   Interaction with stakeholders, documentation and dissemination

      -   Dissemination and Discussion
      -   Know-how transfer and Training

      Documentation

      Target 1:   Methodology
      Target 2:   Models conceptualization and formulation
      Target 3:   Model codes
      Target 4:   Data collected and guidelines for data collection
      Target 5:   WR Plans analysis results
      Target 6:   User manual
      Target 7:   Guidelines for modifications of components

      Dissemination & Discussion

      Target 1: Specific technical workshops (where SRU staff presents DSSP
                components and discusses with experts, MPWWR-PS staff, EEAA staff;
                these events aim at both dissemination to the external world and capacity
                building of the SRU)
      Target 2: Participation to scientific events
      Target 3: Publications

4.6       Required Technical Assistance

4.6.1     Expatriate experts

The time-schedule of the activities is shown in Table 1.

      •   The total required expatriate experts account for 84 men-month (36 men-month
          for the Italian Co-manager), of which 34 men-month in the first year. (see Tables
          2 and 4). Their professional profiles are described in Annex 1.
      •   The Senior Professional Experts foreseen for the entire period account for six
          men-month, i.e. two men-months for each year.

4.6.2     Local experts

The total local experts accounts for 54 men-month, of which 18 men-month in the first
year (see Tables 3 and 5).

4.6.3     SRU staff

The SRU staff should be increased in order to guarantee a smooth follow-up of the

                                                                                        27
activities foreseen for Phase II and the presence of a number of Egyptian experts well
acquainted with the project methodology. It is essential that the experts selected be
skilled enough in order to master the know-how that will be transmitted to them from the
expatriate experts who worked on the project in the first phase (mainly the ET&P staff
and the WR Planner).

The proposed structure of SRU is shown in Annex 2




                                                                                     28
     TABLE 1         PHASE II - ACTIVITY-SCHEDULE

                                                                                                                                                                                   Responsi-
ACTIVITIES                    1.st year                                      2.nd year                                          3.rd period
                                                                                                                                                                                   bility
                              1   2   3   4   5   6   7   8   10   11   12   1   2   3   4   5   6   7   8   9   10   11   12   1   2   3   4   5   6   7   8   9   10   11   12
    Refinement/calibration
A
    of models                                                                                                                                                                      SRU
B   GUI refinement                                                                                                                                                                 Exp. Exp
C   Utilities                                                                                                                                                                      Exp. Exp
    Model     Base     up-
D
    grading                                                                                                                                                                        SRU
    Field data collection/
E
    surveys                                                                                                                                                                        SRU
F   National case-study                                                                                                                                                            SRU
G   alfa-version of DSS                                                                                                                                                            Exp. Exp
H   Analisys of WR plans                                                                                                                                                           SRU
    Interaction with stake-
I   holders, dissemination                                                                                                                                                         Common
    & documentation




                                                                                                                                                                                    29
        TABLE 2 - REQUIRED EXPERTISE – PHASE II




                                                                                                                                                                                               Interaction with stake-holders,
                                                                                                                                                                                               dissemination & documentation
                                       Models refinement/calibration




                                                                                                    Model Base up-grading




                                                                                                                                                                                                                                 Technical coordination
                                                                                                                                                                        Analysis of WR plans
                                                                                                                            National case-study

                                                                                                                                                  alfa-version of DSS
 REQUIRED EXPATRIATE
 EXPERTS (men-month)




                                                                       GUI refinement

                                                                                        Utilities




                                                                                                                                                                                                                                                           TOTAL
Senior Professional Experts                                                                                                                                                                                                                               6.0

Italian Co-manager                                                                                                                                                                                                                                        36.0

Technical coordinator                                                                                                                                                                                                            6.0 6.0

WR Planner ( expert)                   2.0                             1.0 1.0                      1.5                     1.0 1.0 2.0 1.0                                                                                                               10.5

Informatic expert ()                                                   4.0 4.0                      0.5                     0.5 0.5 1.0 1.0                                                                                                               11.5

Programmer                             2.0                                              2.0         1.5                     0.5 1.0 1.0 1.0                                                                                                               9.0
Environmental Economist (Sustainable
                                                                                                    1.0                                                                                                                                                   1.0
development)
Other experts not yet identified                                                                                                                                                                                                                          4.0

TOTAL                                  4.0                             5.0 7.0                      4.5                     2.0 2.5 4.0 3.0                                                                                      6.0 84.0




                                                                                                                                                                                                                                                                   30
        TABLE 3 - REQUIRED EXPERTISE – PHASE II




                                                                                                                                                                                                 Interaction with stake-holders,
                                                                                                                                                                                                 dissemination & documentation
                                        Models refinement/calibration




                                                                                                     Model Base up-grading




                                                                                                                                                                                                                                   Technical coordination
                                                                                                                                                                          Analysis of WR plans
                                                                                                                             National case-study




                                                                                                                                                                                                                                                             TOTAL
                                                                                                                                                   alfa-version of DSS
 REQUIRED LOCAL EXPERTS
 (men-month)




                                                                        GUI refinement

                                                                                         Utilities
Local Technical Coordinator                                                                                                                                                                                                        5.5                       5.5

WR Planner                                                                                                                                                               5.0                                                                                 5.0

Informatic expert ()                                                    2.5                          1.0                                                                                                                                                     3.5

Programmer                              2.0                                              2.0         0.5                                           2.0 1.0                                                                                                   7.5
Environmental Economist (WQ expert –
                                     3.0                                                                                     1.0                                         2.0                                                                                 6.0
Eco-toxicologist)
Health expert                                                                                        3.0                     1.0                                                                                                                             4.0

Macro-economist                                                                                                                                                          0.5                                                                                 0.5

Irrigation & Agriculture expert         1.0                                                                                  1.0                                         1.0                                                                                 3.0
Environmental Economist (sustainable
                                                                                                     2.0                                                                 1.0                                                                                 3.0
development)
Socio-economist                         3.0                                                                                                                              1.0                                                                                 4.0

Socio & cultural gender issues expert                                                                                                                                    2.0                                                                                 2.0

Geologist (GW resources)                2.0                                                                                                                              1.0                                                                                 3.0

Ecologist (nature conservation)                                                                      1.0                                                                 0.5                                                                                 1.5

Other experts not yet identified                                                                                                                                                                                                                             5.5

TOTAL                                   11.0 2.5 2.0                                                 7.5                     3.0 2.0 15.0 0                                                                                        5.5                      54.0




                                                                                                                                                                                                                                                                     31
        TABLE 4 - REQUIRED EXPERTISE – FIRST YEAR




                                                                                                                                                                                                   Interaction with stake-holders,
                                                                                                                                                                                                   dissemination & documentation
                                           Models refinement/calibration




                                                                                                        Model Base up-grading




                                                                                                                                                                                                                                     Technical coordination
                                                                                                                                                                            Analysis of WR plans
                                                                                                                                National case-study

                                                                                                                                                      alfa-version of DSS
 REQUIRED EXPATRIATE
 EXPERTS (men-month)




                                                                           GUI refinement

                                                                                            Utilities




                                                                                                                                                                                                                                                                TOTAL
Senior Professional Experts                                                                                                                                                                                                                                   2.0

Italian Co-manager                                                                                                                                                                                                                                            12.0

Technical coordinator                                                                                                                                                                                                                2.0 2.0

WR Planner ( expert)                       1.0                             0.5 0.5                                                                                                                 0.5                                                        2.5

Informatic expert ()                                                       4.0 4.0                                                                                                                 0.5                                                        8.5

Programmer                                 2.0                                              2.0                                                                                                    0.5                                                        4.5
Envir.   Economist          (Sustainable
                                                                                                        0.5                                                                                                                                                   0.5
development)
Other experts not yet identified                                                                                                                                                                                                                              2.0

TOTAL                                      3.0                             4.5 6.5                      0.5                                                                                        1.5                               2.0 34.0




                                                                                                                                                                                                                                                                        32
        TABLE 5 - REQUIRED EXPERTISE – FIRST YEAR




                                                                                                                                                                                                Interaction with stake-holders,
                                                                                                                                                                                                dissemination & documentation
                                        Models refinement/calibration




                                                                                                     Model Base up-grading




                                                                                                                                                                                                                                   Technical coordination
                                                                                                                                                                         Analysis of WR plans
                                                                                                                             National case-study

                                                                                                                                                   alfa-version of DSS
 REQUIRED LOCAL EXPERTS
 (men-month)




                                                                        GUI refinement

                                                                                         Utilities




                                                                                                                                                                                                                                                                  TOTAL
Local Technical Coordinator                                                                                                                                                                                                       2.0                       2.0

WR Planner                                                                                           0.5                     0.5 0.5 0.5                                                                                                                    2.0

Informatic expert ()                                                    1.0              1.0                                                                                                                                                                2.0

Programmer                              2.0                                              2.0                                                                                                    0.5                                                         4.5
Environmental Economist (WQ expert –
                                     2.0                                                                                                                                                                                                                    2.0
Eco-toxicologist)
Health expert

Macro-economist

Irrigation & Agriculture expert         1.0                                                                                                                                                                                                                 1.0
Environmental Economist (sustainable
development)
Socio-economist                         2.0                                                                                                                                                                                                                 2.0

Socio & cultural gender issues expert

Geologist (GW resources)                1.0                                                                                                                                                                                                                 1.0

Ecologist (nature conservation)

Other experts not yet identified                                                                                                                                                                                                                            1.5

TOTAL                                   8.0                             1.0 3.0                      0.5                     0.5 0.5 0.5                                                        0.5                               2.0                       8.0




                                                                                                                                                                                                                                                                    33
4.7     Case-studies

The best application of the DSS is undoubtedly associated to the analysis of the effects
linked to the adoption of a particular national plan for utilization of water resources. In
this respect, the DSS may be tested on the National Water Resources Plan, the project of
Dutch cooperation implemented within the MWRI-PS which deals with the safeguard of
the water resources and which may be analysed before its final adoption.

Though the DSS was conceived to analyse cases at national level, local cases like Siwa
and Fayoum can also be dealt, taking into account the following additional needs:

1. To introduce more detailed data in the DB;
2. To define again the schematisation of the system (SU, water networks, etc…);
3. To revise at conceptualisation level some relations cause-effect (those already
   adopted may loose significance);
4. To significantly modify some models to allow them to analyse more detailed data
   congruent with the conceptual modifications. For instance, the model on the aquifers
   should be completely different;
5. To revise Indicators, Development Measures and Scenarios.

The application of the DSS to a local case might be undertaken, only if more resources
are made available and in any case after completion of the first case study at national
level, that will operate the calibration of the system.

5     JUSTIFICATION

Water Resources development in Egypt is under careful study since many years ago and a
considerable amount of data, including several analysis-tools very refined and powerful,
are available, as it is evident from the many projects being carried out by various Donors.
Nevertheless the know-how and the technical background seem not to be yet adequate to
comply with sustainability imperative.

The approach of DSSP can be considered really innovative taking into consideration,
together with traditional technical-economic indicators, other indicators capable of
reporting the effects in terms of quality of life of different interest groups.

The overall context contributes to evaluate positively the work done so far, as confirmed
by the Review Mission of June-July 2000 and the final workshop. It is necessary by all
means to capitalize on what already have been achieved, aiming at the consolidation of
the developed core DSS and its implementation in one or two case-studies.

It is worth to underline that many targets have been achieved and it would be a missed
opportunity not to proceed with a second phase: as a matter of fact it is now available a
powerful DB, many digitised maps (GIS), a Model Base containing 17 models which can
be integrated in a simulator of the socio/economic/environmental dynamic system, an
informatic environment (AVS Express) where all these elements are really integrated and
usable through an ad-hoc user-interface, and last but not least, trained personnel.

                                                                                        34
The GOE, and in particular the MWRI, assigns to the project a particular importance and
high priority in the context of its planning policies. Moreover this is evident from the
financial resources they are ready to allocate for the prosecution of the activities.

6   FACTORS ENSURING THE SUSTAINIBILITY

The project can be titled as ‘sustainable’ if the SRU, which is working on developing step
by step, will be capable after the end of the project to use and manage the DSS on its
own. This includes the ability of conveying to policy makers and DMs the knowledge
about DSS potentialities, i.e.: what can it do, what kind of answers can provide, what
information does it manage, which phenomena does it take into account. And also: the
capability to feed the DSS Database and GIS with updated and improved information, to
correct, modify, refine, substitute models; to create, assess and interpret new evaluation
indices.

In order to ensure the sustainability it is also necessary to improve the protocols among
the concerned institutions to facilitate the flow of data needed to up-date the data archives
and to promote major participation to the project by these institutions, and in particular
other NWRC Institutes.

Phase II would reach the sustainability, as significant resources will be dedicated to
review and refine all components (starting from the models).

7       IMPLEMENTATION

7.1 Organization and implementation procedures
7.1.1. Institutional framework

The institutions, main beneficiaries of the Program, are participating to EIECP on the
following capacity:

    •   EEAA, as the central coordinating and competent body for the protection and
        promotion of the environment (responsibilities of EEAA by Law 4/94 listed in
        Annex 3 )

 The EEAA, in its capacity of executive arm of MSEA, will implement the Program,
acting on behalf of the Government of Egypt. EEAA will be responsible for the overall
coordination of the activities performed by the concerned institutions, and participates in
assessing and evaluating the impact of the Program. The expected responsibilities of
EEAA are drafted in Annex 4. These will be included in the Memorandum of
Understanding that will be signed between the Italian and Egyptian Governments.

•   The partners institutions, as Implementing Agencies / Executing Agencies / Executing
    Agents of the relevant projects are:

- Governorate of Matrouh:                                    SEAP
                                                                                          35
- Governorate of El Miniya:                                   Solid Waste Management
- National Water Research Centre (NWRC):                      DSS
- Supreme Council of Antiquities (SCA):                       Cultural Resources
7.1.2 Organizational Framework

The support provided by EIECP is aimed to effectively address environmental issues. A
crucial step towards an efficient implementation is the unconditioned participation of the
Executing Agents.

The projects constitute components of an overall Program, despite their deeply different
nature. The organizational and management structure has been conceived in a way that it
will facilitate an integrated implementation of relatively independent activities that have
diverse objectives but an ultimate common scope. This privileging a decentralized
approach in order to ensure the proper involvement of the Implementing Agencies,
enhancing their sense of ownership and facilitating their commitment which will, in turn,
lead to better sustainability of the activities undertaken.

7.1.3 Program Supervision, Co-ordination and Implementation at Central Level

a)    The Steering Committee (SC), chaired by EEAA, will ensure:

       -   Guidance and overview to the Program,
       -   General policy and follow-up on strategic issues,
       -   Sharing of experiences and facilitation of linkages/networking,
       -   Integration with other activities within NEAP framework.

     The Steering Committee will meet annually, or as needed. The proposed
     composition of the SC is shown in Annex 5.

b)   A Program Coordination Unit (PCU) will assist the Recipient Government /
     EEAA and the Italian Cooperation on the overall implementation of the activities as
     the coordinating entity, liaising in particular with the Executing Agencies and the
     Project Management Units. The PCU, that will act as Technical Secretariat of the
     PSC, will perform its tasks in close collaboration with UNDP country office, which
     has been entrusted with supporting the implementation of the Program. The PCU, in
     place since the inception of the activities, will also ensure the continuity between the
     two phases of the Program.

     The PCU, operating as an independent entity, may be envisioned as the “driving
     force” behind the Program, monitoring its progress (including the financial
     statements), ensuring communication between the projects, addressing problems,
     linking with local and national institutions, promoting, supporting and organizing
     seminars and workshops in order to capitalize the results achieved, giving visibility
     to the individual projects and the Program as a whole. The Terms of Reference of the
     PCU are listed in Annex 6.

     The PCU will be co-managed by an Italian Expert appointed by DGCD and by an

                                                                                          36
     Egyptian professional seconded by EEAA, supported by a limited organizational
     structure.

     The Italian Cooperation will provide the Italian Technical Assistance that in addition
     to the Coordinator will include short-term Consultants. Those will cover the fields of
     financial auditing and the expertise needed for the mid-term evaluation.

     To achieve the full benefits of the Program and to enhance PCU efficiency and
     responsiveness, it is envisaged that the PCU will be located in EEAA premises.

c)   The UNDP country office (UNDP) will support EEAA in the execution and
     implementation of the program and projects within the framework of UNDP
     National Execution arrangements. UNDP will be responsible, in accordance with
     UNDP guidelines and procedures for ensuring proper use of funds to assigned
     activities, timely reporting of implementation progress, monitoring the Program as
     well as ensuring undertaking of mandatory and non-mandatory evaluations. In this
     context, UNDP will provide support and backstopping to the projects to ensure
     proper implementation progress, convene periodical meetings with project
     managements, provide the needed flexibility for feedback and revision to products
     and documents, and when necessary filter Program results to be in line with
     objectives and work plans. UNDP will also provide operational support related to
     recruitment, procurement etc. The Terms of References of UNDP are given in
     Annex 7.

7.1.4 Projects implementation at Executing Agencies level

The GOE will bear final responsibility for the implementation of the projects through the
appointed Executing Agencies (EA) s.

The Agencies/Departments designated for the execution of the projects are:

- EEAA/Nature Conservation Sector:                   NCS support, WRPA, Siwa PA,
                                                     Gabal Elba
- EEAA                                               Institutional-Legal Framework
 - Governorate of Matrouh:                           SEAP
- Governorate of El Miniya:                          Solid Waste Management
- National Water Research Centre (NWRC):             DSSP
- Supreme Council of Antiquities (SCA):              Cultural Resources

The Agencies will ensure the execution and /or implementation of the projects,
contributing financially to the investment as well as to the operational, maintenance and
other relevant costs, including the provision of staff. Detailed responsibilities and
accountability of the Executing Agencies are described in the UNDP procedures for
National Execution.

To this end, the following bodies will be established:


                                                                                        37
a) The Executive Committees (EC) s. These will be established for each project by the
designated Executing Agencies and will have the following tasks:

    -    Review and approval of the Overall Work Plan and Budget, and Annual Work Plans
         and Budgets submitted by the Project Management Unit;
    -    Review and approval of Annual Progress and Financial Reports, and Final Progress
         and Financial Reports submitted by the Project Management Unit;
    -    Oversee the implementation of the activities,
    -    Coordinate the inputs from the different stakeholders of the project.

In order to achieve the appropriate level of flexibility, the EC will have the authority to
modify, without subsequent approval of any higher authority, all necessary activities,
physical targets, project requirements, staffing and budget for the ongoing year. The
modifying authority of the EC is only limited to remain within the overall capital cost of
the project and the project’s qualitative objectives.

The EC will meet twice a year, or as required. The proposed constitution of the Executive
Committee of the DSSP has been indicated in Annex 5.

b) The Project Management Units (PMU)s will be designated by the relevant Executive
Agencies to implement the project activities on day-to-day basis. Each PMU will have
full responsibility and autonomy in all matters concerning day-to-day operations, as well
as for the preparations of all project documents (Work Plans and Budgets, Progress and
Financial Reports, technical documents, etc.) to be submitted for approval to the relevant
EC. Each PMU will implement the approved Work Plans, being fully responsible
technically, financially and operationally. The PMU will be financially and
administratively autonomous, fully accountable to UNDP and Executing Agents. The
establishment and running costs of each PMU constitute part of the relevant project
budgets. The Terms of Reference of the PMU are shown in Annex 8

Two co-managers will head the PMU for DSSP:

-       National Project Director, appointed by the Executing Agency and in line with UNDP
        Rules and Regulations, who will be responsible for the management of the GOE
        inputs and their integration with the project, and the co-management of project funds.

-       Expatriate Manager, who will have the duty to provide the required technical advice
        and will be jointly responsible for the co-management of project funds

The required technical, administrative and support staff for the PMU is listed in the
paragraph 4.6.3.

7.2. Mechanisms for financing and implementation

The design of the mechanism for implementation was based on an extensive consultation
process with the Italian Cooperation, MSEA/EEAA, Implementing Agency and the
potential players, to ensure that the different projects will be implemented through the

                                                                                           38
most adapted and favourable mechanism/organization.

In particular, the Task Force examined the following options of mechanism of
implementation: (i) Italian Cooperation direct management, (ii) Italian Embassy “local
funds”, (iii) UNDP (with UNOPS/OUDA); (iv) IUCN. It was also considered that all of
those could adopt different channels of financing i.e. multi-bilateral, local funds from
Italian Embassy, DGCD direct management, etc.

It was ascertained that the mechanism adopted for the implementation of the first phase
of the Program, i.e. financing through the Italian Embassy (local funds administered by
the PCU) and the direct management of funds by DGCD i.e. the “Gestione Diretta”, is
not capable of responding adequately to the projects needs, due to the cumbersome
administrative procedure to be followed and the lack of the required flexibility and
responsiveness. This is particularly true in consideration of the complexity of the new
Program to be implemented, which has been enlarged to more components.

In addition to the discussion previously held by the Task Force on the subject, new
meetings were held in Cairo during February-March 2002 with: the Italian Cooperation
(Mrs. Mazzacane, Dr. Longobardi Eng. Benevento), EEAA (Eng. Dahlia Lotayef, Dr.
Fouda, Mrs. Hoda Sabry), the International Union for Conservation of Nature/IUCN (Dr.
Parakatil), the Mediterranean Agronomic Institute of Bari (MAI), Dr. Lacirignola, the
University of Pisa (Prof. Bresciani, Arch. Giammarusti) and the United Nations
Development Programme/UNDP (Mr. Vigilante and the relevant senior staff). In
addition, the Task Force submitted to MSEA/EEAA and Italian Cooperation additional
elements for considerations.

As outcome of the preparatory process, EEAA has directed the Task Force to proceed
with the necessary arrangements for the finalization of the project documents and
implementation of the Program through UNDP.

The multilateral organization holds longstanding experience in managing such
multidisciplinary programs, in addition to its orientation toward policy-driven initiatives,
national capacity building and institutional development at central and local levels. The
Second Country Cooperation Framework for Egypt 2002-2006 stipulates that UNDP
support strategy will be implemented through policy advocacy, institution building and
capacity development, and policy demonstration projects. To this end, UNDP support
will target three thematic areas namely: Job creation and development of capabilities,
Environmental Management, Governance for Human Development. The EIECP relates to
all three thematic areas. Further justifications for the selection of UNDP are given in
Annex 9.

The decisions taken about the mechanism for implementation of Phase II will consist on
the following:

7.2.1   Financing

1.a) Italian funds

                                                                                         39
Italy will channel the funds in two ways: (I) through UNDP (multi-bi-lateral channel), for
financing the bulk of the Program, and (II) by direct management/local funds, for
supporting the PCU.

(I) Italian funds through UNDP

The Egypt country office (UNDP) will receive and administer the contribution from the
Italian Cooperation for the implementation of the Program, in accordance with agreed
project documents, regulations, rules and directives.

The main general administration and reporting features are anticipated as follows:

   (i)     The regulations, rules and directives of UNDP shall govern Program
           management and expenditures. Where applicable, regulations, rules and
           directives    of     the   Executing   Agency   will    be     applied
           according to project documents.

   (ii)    UNDP headquarters and country office shall provide the Italian Cooperation,
           the Steering Committee and the Executing Agency with all or parts of the
           following reports, prepared in accordance with UNDP accounting and
           reporting procedures:

           a. The yearly status of program progress and the latest available approved
              budget,
           b. An annual certified financial statement as of 31 December every year to be
              submitted no later than 30 June of the following year,
           c. Within six months after the date of completion of the agreement, a final
              report summarizing program activities and their impact as well as
              provisional financial data,
           d. On completion of the program, a certified financial statement to be
              submitted no later than 30 June of the year following the financial closing
              of the program.

   (iii)   The frequency of reporting and the specific nature may be changed upon
           agreement between the Egyptian and Italian Governments.

   (iv)    The Agreement may be amended through an exchange of letters between the
           Donor and UNDP, after consultation with the Egyptian counterpart.

(II) Italian funds direct management

   The funds will be disbursed by DGCD, partly directly (for the Technical Assistance)
   and partly through the Embassy as local funds.




                                                                                       40
1b)   Government funds

          The counterpart funds will be administered by UNDP. The opportunity to
          have all the government funds, in particular the debt-for-development swap,
          administered by the organization on cost/sharing formula has been selected on
          the grounds of the experience gained by UNDP in the country with this
          formula that has shown several advantages.




                                                                                    41
7.2.2 Agreed Consultancies

For the first phase of the Program, the Egyptian and Italian Parties had agreed that the
technical assistance services, including transfer of technology, training and scientific
dissemination shall be performed by competent Consultancies. In this connection, the
Parties appointed two international organisations (IUCN and MAI-Bari) and the
University of Pisa.

On the grounds of the excellent results achieved by the Program and in order to ensure
technical continuity, it is expected that the Parties will appoint for Phase II the
organizations/institutions that have already implemented in first phase the same type of
activities on same fields of expertise, those will be contracted by UNDP. For the
remaining consultancies, the Parties and UNDP will decide upon the criteria to be
adopted for the selection, in compliance with the existing rules and procedures. All the
appointed sub-contractors will work upon the pre-agreed Terms of Reference.

MAI-Bari has expressed its willingness to operate under this framework. As previously
mentioned, the appointment of MAI-Bari shall be decided upon, in due time, by the
Parties and UNDP.

7.2.3     Operational services

The services related to recruitment, finance, procurement, etc. will be provided directly
by UNDP.

7.2.4    Implementation Arrangements

The implementation arrangements will be agreed upon on the Program basis as well as
might be differentiated on project- by- project basis according to the needs. These
arrangements will allow:

•     Assuring central accounting and auditing as well as control and monitoring,
•     Centralization of both technical and financial reports,
•     Centralizing in particular purchase of equipment and supplies,
•     Standardization of monitoring, review and evaluation,
•     Standardization of project staff fees and other administrative procedures,
•     Standardizing sub-contracts of all institutions involved in the program.

7.3     Specificity of DSSP -Phase II

Based on the experience gained from the first phase and the outcome of the Final
Workshop, the DSSP shall be re-organized taking into account, whenever possible, the
suggestions coming from the relevant Institutions.

All the participants to the Workshop expressed favourable opinions on the product
developed so far and, having also shown their interest in the future
                                                                                      42
development/refinement (second phase), they declared their goodwill in being to a certain
extent involved in the development of such tool through sharing of data and information,
selecting new appropriate indicators, suggesting utilization of existing models, etc… As a
consequence, the creation of a Coordination Committee, external to the Project, under the
patronage of the Minister of Water Resources and Irrigation has been taken into
consideration and is considered of paramount importance.

The Coordination Committee will be composed of: (i) the representatives of the DSSP
team (the two Co-managers), who should also maintain contacts with the users and the
DMs; (ii) representatives of EEAA; (iii) representatives of MWRI-PS; (iv)
representatives of other relevant Egyptian Institutions, with whom agreements have been
reached for sharing of data, models, etc; (v) representatives of different Institutes (mainly
from the NWRC) and from the Private Sector (mainly software houses), who will be
involved in research and training issues, as well as transferring of know-how from
expatriate experts to Egyptian experts (software houses).

As it has been realized that it will not be anymore realistic to foresee a development of
real "user-friendly" system that could be easily utilized by different entities (as it is
feasible, for instance, for Word or Excel) because a tremendous amount of resources
(time and money) would be required, it has been agreed upon that the key problem to be
solved during Phase II is to ensure a bigger number of Egyptian experts to be acquainted
with the DSS tool, in order to maintain the continuous presence of skilled personnel.

Moreover, on the grounds of the experience gained and lessons learnt, it is also important
that the function of Technical Coordinator be re-established, closely assisted by the
counterpart (most probably the Egyptian Co-manager). The Technical Coordinator shall
ensure the development of the activities in accordance with the agreed targets, including
the punctual control of the activities assigned to ET&P. The position should be assigned
to Eng. Nardini, who guided the scientific side of the DSSP. As a matter of fact recruiting
a new Technical Assistant would penalise the project in term of action continuity and
effectiveness. The new person might apply different approaches that would mean a
possible twisting on the work methodology, with loss of energy and time, especially
when the conceptualisation approach adopted so far has been recognized from many
prominent parties as innovative and appropriate.

Nonetheless, to sustain the adopted approach and to acquire experiences and different
points of view useful to consolidate/improve the system, a number of Senior Professional
Experts (Researchers, Directors of Research Institutes well known at
national/international level, Professors from Universities, Professionals familiar with the
project concepts, etc.) shall be appointed for short-term consultancies (about 6 men-
month in total). For the identification of Senior Professional Experts the following
organizations/privates candidates maybe taken into account:
     - European Commission Joint Research Centre – ISPRA;
     - Italian Ministry of Treasury - Nucleo Valutazione Grandi Progetti;
     - Italian Environmental Ministry - Settore Sviluppo Sostenibile;
     - INEA (National Institute of Economy in Agriculture – Italy);
     - ANPA (National Agency Environmental Protection - Unità Relazioni Intern.);

                                                                                          43
    -    CIRITA (Research Centre for Territorial & Environmental Informatic-
         modellistic informatic section - Politecnico of Milan);
    -    Daniele Fanciullacci; Others……….


Needless to say, their consulting activities should be defined in a very open and
cooperative way together with the co-managers of the PMU, in order to guarantee a well-
defined line of action and better results.

In synthesis the preliminary actions to be carried out are:

    -    To select a number of technicians (especially from the NWRC Institutes and the
         MWRI) to be employed in the project and whom the transferring of know-how
         might eventually be addressed to. An Egyptian Software House should also be
         selected to be properly trained on AVS-Express, or any other basic software that
         might be chosen in the second phase.

    -    To define the needed professional profiles and to carry out the final selection of
         the above mentioned technicians to be employed in the project, through
         appropriate training courses, to be held for instance at the premises of MAI in
         Bari, followed by tests to identify the professional attitude towards DSS topics.
         ET&P staff and the WR Planner, Dr. Nardini, who are essentially the holders of
         the know-how, should carry out these courses.

    -    To accelerate the transfer of know-how, with an active participation of the two
         Co-managers.

The above-mentioned activities are deemed essential to guarantee a progressive transfer
of the know-how in the Egyptian hands, limiting the technical assistance needs to
specialist consulting contributions.

MAI-Bari shall assume a more pro-active role in the management of the project, through
the organization of the training courses and the recruitment and employment of the
experts.

To maximize the returns from the human and financial investments made by GOE and
GOI in the project it is worth to re-consider the inter-relationships between the EEAA
and the organizational framework project structure.

In term of relationships, the participation to the development of the project by EEAA
shall be regarded as a commitment to be fulfilled in order to share its ownership. As far
as other Institutions/Agencies are concerned, a reasonable target could be that of
informing and sensitise them on the potentialities of the system, getting their appreciation
and acknowledgement of the results achieved by SRU, and possibly obtaining their
involvement in designing jointly further elaborations. In addition, their contribution in
shared data, models, etc. will be of paramount importance, therefore they have to be
considered "beneficiaries" rather than "end-users".

                                                                                         44
Taking advantage of the lessons learned, the working procedure for the staff should
follow a different strategy, in order to enhance its productivity. A detailed activity-
schedule should be designed, with precise articulation of the targets to be assigned to
each person. The funds needed for each target shall be released only after completion of
the previous one and the same procedure shall be applied if two or more targets/activities
are developed in parallel. It is believed that on this way the motivation to reach the
targets will increase and a constant control of the results obtained facilitated.

8         MONITORING AND EVALUATION

The criteria that have been established for measuring the progress in achieving the
objectives will be as follows: the targets will be fixed on time basis, to be reached
adopting a relative simple articulation of sub-activities and a precise definition of roles
and responsibilities. Their completion will be verified on a specific dates. It is then
absolutely necessary to define a-priori the detailed activity-schedule and link a target to
any single activity, the achievement of which could be measurable. This is feasible as the
tool has been well defined and the conceptualisation has been completed.

Progress reports, based on the UNDP format, will be prepared by PMU and presented to
the Executive Committee who would meet at least every six months.

The PMU will prepare, at the inception of the project with the assistance of the PCU and
UNDP, the project logframe defining the key indicators and means of verification.

8.1        The monitoring arrangements

      •    The management will verify at a fixed time the achievements of any single target.

      •    Any adjustment of the next targets shall be agreed between the Technical
           Coordinator and the PMU, after discussions with the staff.

8.2        Definition of indicators

The indicators to be taken under control for monitoring the achievements of the project
are the following:
    • The number of Decision Makers or other institutions that will be involved to
        various extent in the project;
    • The time dedicated to common research-activities by SRU staff and other
        Institutions staff;
    • The number of men-month of experts spent for the achievement of the project
        tasks;
    • The number of men-month of project-staff dedicated to its implementation;
    • The number of papers/reports produced for the dissemination of the project's
        findings.


                                                                                          45
8.3        Review/Evaluation

A Mid-term external evaluation will be conducted, the results of which will be presented
to the Executive Committee and Steering Committee.

9         RISKS

Some risks and possible solutions are analysed here below:

      •    The complexity of the methodologies and other tools needed for the development
           of the DSS requires a specialization that has been build and should now be
           transferred to the Egyptians. The project has definitively contributed to the
           'capacity building' of a number of SRU staff. SRU staff has for sure acquired a
           wide vision of the planning problems and of the system-analysis tools to support
           it, but on the other hand they are not yet skilled to further develop the system
           autonomously, without the expatriate expertise, though now they are already
           working in this direction. It is also true that the main knowledge as well as the
           majority of the models developed are specific to the system adopted so far, i.e.
           AVS-Express, and neither the staff nor any Software House in Egypt are familiar
           with this software (the only experts who undergone a preliminary training are
           currently on long leave in the States and in Canada).
      •    It should be therefore a priority to create the conditions for the key-staff of SRU
           to effectively manage the system autonomously, and to have an Egyptian
           Software House well acquainted with the specific software adopted by the project.
      •    A future strong personalization of the project, in the sense that it might depend on
           the know-how of a single person only, should be avoided. The appointment of the
           above mentioned Senior Professional Experts would help in solving this problem.

10.    PROJECT COSTS
 Information on Project costs is not available on the website




                                                                                            46
ANNEXES




          47
             ANNEX 1

Expatriate Experts Profiles and Tasks




                                        48
                               ITALIAN CO-MANAGER

Expert profile
Background in Engineering. Experience as project-manager. Ability to coordinate inter-
disciplinary, multi-cultural working groups. Capability of organizing the activities
efficiently and effectively. Ability in the preparation of clear scientific-technical reports
at the international level.
Previous specific experience with Egyptian reality highly recommended. Previous
working experience in the project extremely valuable.
Fluency in English, Arabic as additional asset. To be resident in Egypt for the project
period.
General aim
The Italian Co-manager, jointly with the Egyptian Co-manager, will ensure a continuous
control of the activities in order to reach the agreed targets, according to the schedule.
S/he will also be the person in charge of supervising the personnel and dealing with the
financial issues, which need to be properly administrated and imply day-to-day relations
with the PCU.
In general terms S/he will ensure that a fair, feasible balance between the fulfillment of
project objectives, local requests and available resources will be achieved.
Tasks
The Italian Co-manager will be responsible of the preparation of the Work Plans, as well
as the detailed activity-schedules. In cooperation with the Egyptian Co-manager, S/he
will prepare the Terms of Reference and assign the tasks to the expatriate and local
experts and to the SRU staff.
S/he will superintend the effective completion of all the activities finalized to the
achievement of the following results:
    - MWRI and EEAA will be provided with a methodology and a tool which
        facilitate the process of drawing sustainable policies for management of water
        resources;
    - The technical gaps of NWRC/SRU in dealing with integrated water resources
        planning will be removed;
    - An efficient Data Base filled with reliable data will be obtained, to the benefit of
        all interested institutions;
    - The DSS methodology will be proved effective. The results from the case-study
        (ies) will be utilized by the interested decision-makers;
    - A stronger coordination among all the projects dealing with water resources being
        implemented by other cooperation agencies will be achieved.
S/he will be responsible of the administrative issues and of the preparation of monthly
financial reports to be submitted to the PCU.
S/he will also be responsible of the preparation of progress reports, final report and final
bill of the project, as well as the publications issued by the project for disseminating
information regarding the DSS and its output.

Length of assignment
S/he shall be appointed for the entire duration of the project, therefore the assignment
will be 36 men-month.
                                                                                          49
TECHNICAL COORDINATOR

Expert profile

Background in Engineering or Economics. Experience with Systems Analysis,
mathematical modelling, and decision support systems mandatory. Well acquainted with
environmental and sustainability issues. Inter-disciplinarity. Ability to coordinate inter-
disciplinary, multi-cultural working groups. Capability of organizing the activities
efficiently and effectively. Ability to preparation of clear scientific-technical reports at
the international level (amount of previous international publications).

Previous specific experience with Egyptian reality highly recommended. Previous
working experience with the Strategic Research Unit extremely valuable.

Fluency in English, Arabic as additional asset.
Available to frequent trips to Egypt.

General aim

The Technical Coordinator (TC) is the person who assures that the activities set up are
exactly those adequate to reach the agreed targets; in the mean time, guarantees a step-
by-step control of the activities assigned to different subjects.

Tasks

The TC will define in a very open and cooperative way together with the co-managers of
the PMU/PCU the organization and contents of each activity foreseen in the Workplan,
and possible variations. S/he will set up a monitoring system aimed at ensuring the
effective achievement of targets. S/he will be responsible for assigning priorities,
checking the degree of advancement in the activities, identifying problems and
difficulties and designing solution strategies.

S/he will be in charge of ensuring real coordination amongst the different subjects
involved, particularly between the Italian ET&P team and the Egyptian SRU team. This
implies setting up an efficient and effective communication protocol and a system to
practically prevent and possibly solve misunderstanding and conflicts. It also implies
frequent visits to both Egyptian and Italian project offices. Coordination will also
capitalize on the knowledge and experience of IAM-Bari.

The role, however, is not only one of mere coordination; it requires a high familiarity
with technical and scientific issues, as the TC will be responsible for specifying the
approach and focus to be adopted for each activity.

The expert will be involved in practically all the activities where a modelling skill is
requested. S/he will play the difficult role of solving specific problems while keeping in
mind the overall architecture of the system. For instance, one of the main tasks will be
model calibration and validation; if, say, a variable comes out to be unsuited and

                                                                                         50
therefore must be modified, or a new one introduced, the expert will have to take care of
all the consequences that such a change may imply on other models, the indicators and so
on. This is why his background must range from simulation issues, to decision analysis,
through informatics (Database, GIS, ).

Length of assignment
2.50 men-month in the first period and 3.00 men-month in the second period.




                                                                                      51
WATER RESOURCES PLANNER

Expert profile
Background in Engineering, Geology, Geography, Economics. Experience with water
resources management and planning, environmental and sustainability issues, socio-
economics required. Acquainted with mathematical modelling, decision support systems
recommended.

Previous specific experience with Egyptian reality extremely valuable. Previous working
experience with the Strategic Research Unit highly recommended.

Fluency in English, Arabic as an additional asset.

General aim
To achieve a fair representation of the Egyptian reality in the case study development.

Tasks
This expert will be involved in the national case study. S/he will be in charge of ensuring
that the assumptions introduced to represent the Egyptian reality through available data
are acceptable, and will make them explicit in order to be recognizable in the future. S/he
will check the available data by working closely with the SRU staff and will design and
follow a number of analysis tests by using the DSS capabilities. S/he will identify
weaknesses and design strategy to overcome them while assisting the SRU staff in their
implementation.

Length of assignment
0.50 man-month in the second period.




                                                                                          52
INFORMATIC EXPERT

Expert profile
Background in Informatics, Computer Sciences, Engineering. Wide experience with
decision support systems, GIS, Database mandatory. Experience with water resources
management and planning, mathematical modelling recommended.

Previous working experience with the project and Strategic Research Unit practically
mandatory.

Working knowledge of English. Arabic as an additional asset.

General aim
To put the in conditions to be fruitfully helpful in the real case study analysis.

Tasks
This expert will be involved in a number of activities mainly concerning the refinement
and correction of the GIS, Database, and DSS tools already set up. S/he will have to
follow the possible modifications introduced, in particular, in the model calibration
activity, in the refinement of evaluation capability (indicators, aggregations) both at the
general level and at the level of the case study.

Length of assignment
9.00 men-month in the first period and 2.50 men-month in the second period.




                                                                                        53
PROGRAMMER

Expert profile
Background in Informatics, Computer Sciences, Engineering. Experience with
programming languages mandatory. Experience with water resources management and
planning, mathematical modelling, decision support systems recommended.

Previous working experience with the project and Strategic Research Unit practically
mandatory.

Working knowledge of English. Arabic as an additional asset.

General aim
To put the in conditions to be fruitfully helpful in the real case study analysis.

Tasks
This expert will be involved in a number of activities mainly concerning the refinement
and correction of the mathematical models and DSS tools already set up. S/he will have
to follow the possible modifications introduced, in particular, in the model calibration
activity, in the refinement of evaluation capability (indicators, aggregations) both at the
general level and at the level of the case study.

Length of assignment
5.00 men-month in the first period and 4.00 men-month in the second period.




                                                                                        54
ENVIRONMENTAL ECONOMIST

Expert profile
Background in Environmental Economics. Experience with sustainable development
issues, ecological footprint analysis, green accounting mandatory. Experience in water
resources management and planning, decision support systems, mathematical modelling
recommended.
Ability to work in multi-cultural working groups. Ability to write clear scientific-
technical international reports.

Previous specific experience with Egyptian reality highly recommended. Previous
working experience with the Strategic Research Unit extremely valuable.

Working knowledge of English. Arabic as an additional asset.

General aim
To develop an environmental sustainability index to be adopted at the Decision Makers
evaluation level.

Tasks
This expert will be asked to develop a conceptual model and a computation algorithm for
an environmental sustainability index. This index will be inserted amongst those selected
for the third level of evaluation foreseen in the DSS evaluation module. It will be based
on the information managed within the system, i.e. available as state (initial or simulated)
and base information. As a first step the possibility to develop an Ecological Footprint
index will be considered both in terms of available information and relevancy for
decision making (comparison of alternatives). The expert will also have to draw
complete, detailed and clear instructions to guide in the application of the framework
developed at the case study level.

Length of assignment
0.50 man-month in the first period.




                                                                                         55
  ANNEX 2

NWRC/SRU Staff




                 56
NWRC/SRU STAFF
INVOLVED IN THE PROJECT
______________


Key-Staff (receive incentives from the project):

Dr. Mona El Kady                                   NWRC   Chairperson NWRC
Dr. Mohamed Abdel Motaleb                          SRU    Project C0-manager
Dr. Maha Tawfik (Assist. Prof.)                    SRU    DB expert
Dr. Khaled Kheireldin (Ass. Prof)                  SRU    System Analyst
Dr. Alaa Abdin (Researcher FT)                     SRU    WR modeling expert
Dr. Assem Afifi (Researcher FT)                    SRU    GIS/DB expert
Dr. Youssef Hafez                                  SRU    Modeling expert
Eng. Amgad Saleh El Maadi                          SRU    Assist. Researcher DB/GIS
Eng. Inas El Gafe (Assist. Resear. FT)             SRU    Modeling engineer
Eng. Doha Mohamed (Assist. Resear. FT)             SRU    DB engineer
Dr. Nagi Reyad (Researcher PT)                     NWRC   GIS expert
Dr. Hazem Fahmy (Researcher PT)                    NWRC   WR expert
Eng. Maged Abouelata (Assist. Resear. FT)          SRU    Modeling engineer – on leave
Eng. Ali El Desouky (Assist. Resear. FT)           SRU    GIS/DB engineer – on leave


Secretaries (under contract by the project):

Azza Eid Ali
Soha Othman


Drivers (under contract by the project):

Mahmoud Abdel Rahman
Samir Ahmed
Ahmed Taha
Essam Ahmed Ali


Various support staff (like gardeners, guardians, messengers, cleaners, tea-women,
etc… (receive small incentives from the project)




                                                                                    57
             ANNEX 3

Responsibilities of EEAA (Law 4/1994)




                                        58
    EEAA responsibilities according to Law 4/1994 for the protection of the Environment

•   Preparation of draft legislation and decrees relevant to the protection of the
    environment.
•   Preparation of studies related to the state of the environment of the country, and
    formulation of the national plan for the protection of the environment.
•   Carrying out field follow-up on compliance with norms and conditions to be
    followed by agencies and establishments.
•   Setting necessary norms and standards to assure compliance with the permissible
    limits of pollutions and to ensure that these norms and standards are followed.
•   Setting principles for environmental impact assessment of projects.
•   Preparation of the Environmental Contingency Plan as stated in Article 25 of Law 4
    and coordination with the competent agencies for the preparation of programs for
    confronting environmental disasters.
•   Preparation of periodical reports on the main environmental indicators.
•   Preparation of programs for environmental education of the public and cooperation in
    their implementation.
•   Coordination with other competent authorities for the handling and management of
    hazardous materials.
•   Management of natural protectorates.
•   Follow-up on the implementation of the international and regional conventions
    related to the environment.
•   Implementation of the pilot projects for the preservation of natural resources and for
    the protection of the environment.
•   Coordination with concerned agencies and ministries for the preparation of a national
    integrated coastal zones management plan for the Mediterranean Sea and the Red Sea
    coasts.
•   Preparation of an annual report on the state of the environment to be submitted to the
    President of the Republic.




                                                                                          59
                        ANNEX 4

Expected responsibilities of EEAA vis-à-vis of the Program




                                                             60
               Expected responsibilities of EEAA vis-à-vis of the Program

i.      Ensure that a correct communication path and technical communication
        mechanism be adopted and sustained amongst concerned line Ministries,
        Institutions, and NGOs whose information, inputs and support be considered
        essential or beneficial to the Program implementation.
ii.     Facilitate access and availability to all relevant data (numeric and statistical
        figures essential to appraise, study and analyse sectoral activities, as well as
        geographical maps, aerial photographs and remote sensing imagery) as
        information considered essential for Program implementation.
iii.    Make available the land belonging to public Authorities or private farmers,
        selected by the project documents and/or defined in the Minutes of the Steering
        Committee (SC), for implementing the Projects in Siwa, Wadi El Rayan, Gabal
        Elba and Minya.
iv.     Facilitate access to all locations to be visited for the implementation of the
        Program.
v.      Ensure that the Project Management Units (PMUs) within their mandate receive
        the support of line Ministries and relevant Institutions in the implementation of
        the projects.
vi.     Ensure that the appointments of national experts will endure for the time required
        by the specific task defined in the project documents, or stated in the Minutes of
        the SC.
vii.    Ensure that appropriate measures are taken to retain trained personnel upon the
        completion of the Program to guarantee its sustainability.
viii.   Ensure unrestricted access to technical and financial information pertaining to the
        Program to DGCD representatives, provided notice in advance is given. GOE will
        maintain Program records for a time span of 5 years after completion of Program.
ix.     Ensure exemption from custom duties and taxation for all equipment, contract
        services, supplies and expert’s personal belongings to be imported in connection
        with the Program implementation.




                                                                                        61
                     ANNEX 5

Suggested Composition of the Steering Committee (SC)
                        and
           DSS Executive Committee (EC)




                                                       62
                 COMPOSITION OF THE COMMITTEES


     Suggested composition of the STEERING COMMITTEE (SC)


Chair:           CEO, EEAA
Members:         Representative of Fayoum Governorate
                 Representative of El Miniya Governorate
                  Representative of Matrouh Governorate
                  Representative of Ministry of Water Resources & Irrigation
                  Representative of the Supreme Council of Antiquities
                  Director, Natural Conservation Sector, EEAA
                  Legal Representative, EEAA
                  Representative of Italian MAE/DGCD/Italian Embassy
                  Representative of UNDP Country Office
                  Representative of Italian Cooperation in Cairo
                  Project Management Units (PMUs)
                  Program Coordination Unit (PCU) (as Technical Secretariat)
                  Representatives from other project/activities implemented
                  under NEAP (as decided by the Chairman)


Suggested composition of the EXECUTIVE COMMITTEE (EC)

Chair:           NWRC (Implementing Agency)
Members:         MWRI representative
                 EEAA representative
                 Representative of Italian Embassy/Italian Cooperation
                 Representative of UNDP
                 Project Management Unit ( as Technical Secretariat )
                 Program Coordination Unit
                 Representatives from other project/activities implemented
                 under NEAP (as decided by the Chairman)

                                                                               63
                    ANNEX 6

Terms Of Reference of the Program Coordination Unit




                                                      64
              Terms of Reference of the Program Coordination Unit (PCU)

-   Coordinate and guide the implementation of the whole Program assisting the
    Steering Committee, the Executing Agencies and the Project Management Units
    (PMU)s, in close coordination with MSEA/EEAA, Italian Embassy and UNDP;
-   Prepare the overall Program and Annual Work plans and Budgets of the PCU, to be
    submitted to Steering Committee for approval;
-   Prepare the Annual Progress and Financial Reports of PCU, to be submitted to
    Steering Committee for review and approval;
-   Ensure to DGCD/Italian Embassy and EEAA the proper management of the PCU in
    accordance with the approved work plans and budgets, rules and regulations, and
    the consolidated procedures;
-   Prepare, based on the individual reports, the consolidated progress reports and
    financial statements of the Program, to be submitted to the Steering Committee;
-   Provide to DGCD/Italian Embassy and EEAA the required assistance in terms of
    monitoring and control over the activities and expenditures agreed with UNDP on
    the cost/sharing arrangements, progress assessments and financial statements;
-   Develop with the institutional partners a common perspective of the Program,
    capitalizing on the results achieved and lessons learnt during the first phase;
-   Assist UNDP and PMUs in the preparation of an overall logframe and a monitoring
    system based on the project logframes, defining the key indicators and means of
    verification;
-   Promote and organize events, seminars, and workshops for the dissemination of the
    results achieved by the Program;
-   Prepare publications and information material for dissemination;
-   Represent the Program in: seminars, workshops, round table conferences, donor
    sub-group meetings i.e. Environment and Energy, Environment/ European Union,
    Solid Waste Management, Natural Renewable Resources, etc.;
-   Provide information and feedback to the PMUs on relevant events and facts
    pertaining to Program interest, including opportunities of participation to meetings,
    seminars, workshops, round table conferences, etc;
-   Track training, capacity building and professional development opportunities, for
    the staff and key-stakeholders of the Program, linking with the General Directorate
    for Training and Development of EEAA and other national/international
    institutions;
-   Update/establish and maintain a WEB page of the Program, linking with EEAA,
    Italian Cooperation, UNDP and individual projects;
-   Develop methodologies, procedures and network of relations to facilitate the
    identification, preparation and start-up of new initiatives under the Program;
-   Identify, coordinate and channel needed Program related policy support to the
    Executing Agencies;
-   Assist the Italian Embassy, MSEA/EEAA, the Executing Agencies and UNDP in
    the process of assets handing over.




                                                                                      65
        ANNEX 7

Terms of Reference of UNDP




                             66
                           Terms of Reference of UNDP

The purpose of the agreement with UNDP country office of Egypt (UNDP) is to provide
an efficient and sustainable mechanism for the implementation of the activities of the
Egyptian-Italian Environmental Cooperation Program (EIECP), in an integrated manner
as foreseen by the relevant Project Documents. The EIECP, jointly financed by the
Government of the Arab Republic of Egypt (GOE) and the Government of the Italian
Republic (GOI), the Ministry of State for Environmental Affairs (MSEA) and its
executive arm, the Egyptian Environmental Affairs Agency (EEAA), other Ministries and
Governorates, renown Italian and International Organizations, Scientific Institutions,
NGOs and conservation Experts etc.

The EIECP will be executed through a Memorandum of Understanding (MOU) to be
signed between the GOE and GOI. Accordingly, UNDP will support EEAA in the
execution and implementation of the Program within the framework of UNDP National
Execution arrangements, in compliance with the Project Documents (which are an
integral part of the Terms of Reference),

UNDP will work in close association with the Program Coordination Unit (PCU) that is
entrusted with assisting the Steering Committee, the EEAA and the Italian Cooperation
on the coordination, guidance and control of the program.

UNDP will be responsible, in accordance with UNDP guidelines and procedures, for
ensuring proper use of funds to assigned activities, timely reporting of implementation
progress, monitoring the Program as well as ensuring undertaking of mandatory and non-
mandatory evaluations. In this context, UNDP will provide support and backstopping to
the projects to ensure proper implementation progress, convene periodical meetings with
project managements, provide the needed flexibility for feedback and revision to products
and documents, and when necessary filter Program results to be in line with objectives
and work plans. UNDP will also provide operational support related to recruitment,
procurement, administration, finance etc.

More specifically, UNDP will provide the following services:
  • The implementation arrangements, which will be agreed on the Program basis, as
      well as they will be differentiated on project-by-project basis according to the
      needs.

       These arrangements will allow: (i) Centralizing purchase of equipment and
       supplies; (ii) Standardizing sub-contracts of all institutions involved in the
       program; (iii) Standardizing program staff fees and other administrative
       procedures; (iv) Assuring central accounting and auditing as well as control and
       monitoring; (v) Centralizing technical and financial reports; and (vi)
       Standardizing monitoring, review and evaluation procedures.

   •   The operational services, related to recruitment, finance, procurement etc. on the
                                                                                      67
      basis of the Implementation Protocols ( IPs ) to be signed between the relevant
      partners that direct and regulate the Implementation of the Program and their
      participation.

•     The proper administration of the Program funds and their timely disbursement to
      the Project Management Units ( PMUs ) according to the approved workplans and
      budgets.

•     Procure the equipment and material on need basis and upon request from the
      PMUs, in accordance with the approved work plans and budgets.

•     The operational and maintenance expenditure covering the fields of operations, in
      accordance with the approved workplans and budgets.
•     The technical assistance, which in accordance with the MOU and IPs will be sub-
      contracted according to the approved TORs with the appointed International
      Agreed Consultancies identified by the Egyptian and Italian Governments or
      directly .
•     Sub-contract the International and Local Consultants on the basis of the TORs
      that will be included in the work plans approved by the Executive Committees.

•     Review the Progress Reports based on the UNDP format prepared on half-year
      basis by each PMU to be submitted to the relevant Executive Committees.

•     Prepare on half year-basis the financial statements of the Projects, to be
      submitted to the relevant Executive Committees.

•     Assist the PCU on preparing, on yearly basis, the consolidated Progress Report
      and Financial Statement of the Program, to be submitted to the Steering
      Committee.

•     Assist the PMUs in preparing the logframes of the Projects, defining the key
      indicators and means of verification. Review the updated logframes prepared by
      the PMUs to be presented to the relevant Executive Committees along with the
      Progress Reports.

•     Develop and update, in close coordination with the PCU, an overall logframe of
      the Program based on the individual Project Logframes, to be presented on yearly
      basis to the Steering Committee.

•     Prepare the TORs for the tripartite mid-term evaluation, which is organized in
      close coordination with the Italian Cooperation and EEAA. Ensure receiving and
      adopting the findings submitted to the Steering Committee and to the Executive
      Committees for the issues pertaining to the particular projects.

•     Ensure the following main general administration and reporting features:

(i)       The regulations, rules and directives of UNDP shall govern Program
                                                                          68
       management and expenditures. Where applicable, regulations, rules and
       directives of the Executing Agency will be followed according to project
       documents and the debt swap procedures.

(ii)   UNDP headquarters and country office shall provide the Italian Cooperation,
       the Steering Committee and the Executing Agencies with all or parts of the
       following reports, prepared in accordance with UNDP accounting and
       reporting procedures:

       -   The yearly status of program progress and the latest available approved
           budget.
       -   An annual certified financial statement as of 31 December every year to be
           submitted no later than 30 June of the following year.
       -   Within six months after the date of completion of the agreement, a final
           report summarizing program activities and their impact as well as
           provisional financial data.
       -   On completion of the program, a certified financial statement to be
           submitted no later than 30 June of the year following the financial closing
           of the program.




                                                                                   69
                   ANNEX 8

Terms Of Reference of the Project Management Unit




                                                    70
                 Terms of Reference of the Project Management Unit (PMU)

-   Provide the day-to-day management directing all implementation activities

-   Manage the allocated financial resources in accordance with the regulations,
    rules and directives of the UNDP and the Executing Agency

-   Manage and supervise the staff and their performance

-   Manage and coordinate all technical and scientific resources

-   Prepare an overall plan, the annual work plans and budgets and the semi-annual
    revised work plans and budgets to be submitted for approval to the Executive
    Committee. The plans will include at minimum the following items:

        1. The defined outputs to be achieved,
        2. Ways and means to achieve the above outputs,
        3. The human resources needed, as well as the detailed terms of reference of
           the technical assistance to be contracted,
        4. The time schedule for the deployment of the technical assistance,
        5. The identification of milestones of the planned activities, as well as
           definition of all the reports (contents, time and task distribution, etc.) in
           order to monitor the project implementation status.

-   Prepare annual and semi-annual technical and financial progress reports to be
    submitted for approval to the Executive Committee

-   Prepare the technical documents related to procurement for services and supplies

-   Develop, in collaboration with the relevant departments, the training need
    assessment of the staff in order to upgrade their level through selected courses

-   Prepare, with the assistance of the Program Coordination Unit and UNDP, the
    project log frame, defining the key indicators and means of verification

-   Liaise with the Executing Agency, EEAA, UNDP, PCU and the relevant local
    institutions in order to ensure inter-departmental cooperation at field level for the
    best implementation of the project

-   Act as Technical Secretariat for the Executive Committee

-   Attend the Steering Committee and the Executive Committee meetings.




                                                                                      71
              ANNEX 9

Comparative advantages offered by UNDP




                                         72
   •   Neutrality

   UNDP’s neutrality and impartiality, along with the resulting close relationship with
   programme country governments, can be considered the most important comparative
   advantage the organization has in the eyes of partners.

   •   Convening power

   UNDP has the ability and credibility to convene people and institutions to enter into
   discussions and agreements on development and policy issues. This allows UNDP
   and partners to clarify national priorities and conditions.

   •   Transparency

   UNDP has the ability and mechanisms to guarantee transparency in the management
   of resources and processes. Bilateral and multilateral donors need to know that their
   resources are well managed, from the technical and the administrative points of view.

   •   Country Office capacities

           -   Knowledge about the national situation
           -   Good relationships at the donors and government levels
           -   Negotiation and communication skills
           -   Technical and administrative expertise
           -   Programme management efficiency
           -   Development results orientation
           -   Management of resources
           -   Programme implementation
           -   Recruitment and procurement services

   •   Program complementarity

UNDP in Egypt has the theme of environment as one of its 3 thematic areas of
concentration (along with Job creation and capabilities enhancement and Governance).
The existing portfolio of UNDP environmental projects is built on a solid partnership
with the Ministry of Environment/EEAA and the Ministry of Water Resources and
Irrigation and the Ministry of Electricity and Energy. The projects implemented or under
implementation include:

EGY92/011: “Technical Cooperation for the Environment (TCOE)”
Government Counterpart:   Egyptian Environmental Affairs Agency (EEAA)
Co-financing source:      GOVT, Denmark, USAID

EGY93/G31: “Lake Manzala Engineered Wetland”
Government Counterpart:  Egyptian Environmental Affairs Agency (EEAA)
Co-financing source:         GOVT

                                                                                     73
EGY97/G31: “Energy Efficiency Improvement & Greenhouse Gas Production”
Government Counterpart:   Ministry of Electricity and Energy
Co-financing source:      GOVT

EGY97/G33: “Conservation of Wetlands & Coastal Eco-Systems in the Mediterranean
region”
Government Counterpart:  Egyptian Environmental Affairs Agency (EEAA)
Co-financing source:     GOVT


EGY99/G35: “Introduction of Viable Electric Hybrid-electric Bus Technology in Egypt”
Government Counterpart:    Egyptian Environmental Affairs Agency (EEAA)
Co-financing source:          GOVT and Social Fund for Development (SFD).

EGY98/004: “Economic and Social Planning for Spatial Development” in the
Governorate of Marsa Matruh: To produce socio-economic planning vision as well as
development projects for the mine affected area.

EGY/00/G31: “Egypt-Conservation and Sustainable Use of Medicinal Plants in Arid and
Semi-Arid Ecosystems”
Government Counterpart:  Egyptian Environmental Affairs Agency (EEAA)
Co-financing source:          GOVT

   •   Low support costs (overhead)

UNDP charges low overhead rates in the implementation and administration of projects
since it only recovers its costs. There are few organizations that can provide the quality
and quantity of services that UNDP does at such low cost.

The services related to project monitoring, recruitment, finance, procurement, etc. will be
provided directly by UNDP.

UNDP would indicatively charge overhead costs as follows:

           5% on project with large sub-contracts.
           7% on project where UNDP has greater involvement in support to project
           management.

Comparative advantages of the cost/sharing formula

Based on the experience of UNDP in the country, the opportunity to have all the program
funds (from Italy and the counterparts funds from Egypt) administered by the
Organization on cost/sharing arrangements has shown several advantages.

For the counterparts (Government) funds the cost/sharing arrangements has shown
following advantages:
                                                                             74
          -   Government cost sharing strengthens the commitment of national
              authorities to the UNDP/government project or programme because the
              government has invested its own financial resources.
          -   Government can carry out project, including quick hiring of consultants
              and even tax-fee procurement, through the UNDP administrative system,
              bypassing the country’s bureaucratic administrative system that can be
              cumbersome and less transparent.
          -   The public sectors may not have adequate human resources required for
              effective project conceptualization, formulation and execution since the
              capacity for such activities has yet to be built. UNDP has the human
              capacities and can strengthen the national human capacities also in this
              respect.
          -   UNDP’s rules and regulations guarantee the transparency and
              accountability of the funds. UNDP is seen as a corruption-free
              organization.
          -   UNDP assists the country programme government in an efficient
              utilization of existing resources and their management in line with national
              development objectives.

Some examples of cost sharing from Government are:

EGY00/015: “Strengthening the Capacity of the Ministry of Foreign Trade for Economic
Management”
Government Counterpart:    Ministry of Foreign Trade

EGY00/011 “Support to the National Council for Women”
Government Counterpart:    The National Council for Women

EGY00/013 “Social Fund for Development-Bridging Phase”
Government Counterpart:    SFD

EGY00/018: “Strengthening Capacity of the Ministry of Communication and Information
Technology”
Government Counterpart:   Ministry of Communication and IT

EGY00/005: “Support to the Ministry of International Cooperation (MIC) Donor
Coordination Support and Technical Assistance Unit”
Government Counterpart:     Ministry of International Cooperation

EGY01/002: “Fiscal Policy Decision Support Unit, Ministry of Finance
Government Counterpart:    Ministry of Finance

EGY97/011: “Capacity Building of (EGSMA) & (NARSS) for the Sustainable
Development of South Valley & Sinai”
Government Counterpart:    General Organization for Physical Planning


                                                                                       75
EGY98/004: “Economic and Social Planning for Spatial Development”
Government Counterpart:  Ministry of Planning

EGY96/002: “Comprehensive for the City of Luxor”
Government Counterpart:  Luxor Governorate

EGY97/008: “The Strategic Plan for the Development of Human Settlements in the Nile
Valley South of Egypt”
Government Counterpart:    The General Organization for Physical Planning

EGY/02/003: “Business Enterprise Support Tools”
Government Counterpart:    Social Fund for Development (SFD)

For the Donor the cost/sharing formula has shown following advantages:

          -   Third-party cost sharing funds are earmarked for a specific purpose that
              reflects the development assistance and aid priorities of the donor. This
              gives the donor the flexibility to allocate funds to meet their development
              aid priorities and report back to the donor government on utilization of
              such funds.
          -   Neutrality/impartiality, along with the resulting close relationship with
              programme country governments, is also a most important comparative
              advantage in the eyes of donors.
          -   UNDP can mobilize several donors around a theme and offer programmes
              that go beyond the capacity of an individual donor.
          -   UNDP ensures full visibility to the co-financing party.
          -   UNDP’s programme in the country often represent interesting substantive
              or managerial complementarity and added value to the project being co-
              financed.

Some examples of cost sharing from bilateral sources:

EGY92/011 “Technical Cooperation for the Environment (TCOE)”
Government Counterpart:  Egyptian Environmental Affairs Agency (EEAA)
Co-financing source:     GOVT, Denmark, USAID

EGY95/004: “Rehabilitation of Historic Cairo” which was successfully completed few
years ago
Government Counterpart:    Ministry of Culture
Co-financing partner:      GOVT (Italian counterpart fund from food aid)

EGY00/003 “Strengthening of Public Enterprise Office”
Government Counterpart:   Ministry of Public Enterprises
Co-financing partner:     GOVT & USAID

EGY99/004 “Integrated Women Health Project
Government Counterpart:  Ministry of Health and Population
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Co-financing partner:       Japanese GOVT

EGY99/005 “Pilot Project for Capacity Building in Human Rights”
Government Counterpart: Ministry of Foreign Affairs
Co-financing partner:      Netherlands & Ford Foundation

EGY96/008: “Advocacy & Capacity Building in Environmental aspects of Energy:
Establishment of the UNESCO Chair at the University of Alexandria”
Government Counterpart:   Alexandria University
Co-financing partner:     The Government of Finland


This document is prepared by the task force
Dr. Marco Marchetti                                    Dr. Tarek Genena

On behalf of                                           On behalf of
the Italian Cooperation                                EEAA




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