Public Disclosure Authorized - · UCLBP Unité de Construction de Logements et de Bâtiments...

Document of The World Bank

FOR OFFICIAL USE ONLY

Report No: PAD1014

INTERNATIONAL DEVELOPMENT ASSOCIATION

PROJECT PAPER

ON A

PROPOSED RESTRUCTURING AND ADDITIONAL GRANT

IN THE AMOUNT OF SDR 4.9 MILLION (US7.5 MILLION EQUIVALENT)

TO THE

REPUBLIC OF HAITI

FOR THE

URBAN COMMUNITY DRIVEN DEVELOPMENT PROJECT (PRODEPUR)

May 29, 2014

Haiti Country Management Unit Sustainable Development Department Latin America and the Caribbean Region

This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s Policy on Access to Information.

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CURRENCY EQUIVALENTS

(Exchange Rate Effective as of May 2, 2014)

Currency Unit =US$ SDR 0.65= US$1

FISCAL YEAR

October 1 – September 30

ABBREVIATIONS AND ACRONYMS

AF Additional Financing

BMPAD Bureau de Monétisation des Programmes d’Aide au Développement (Office of Monetization of Development Aid Programs)

BTC Technical Coordination Bureaus CADEC Council for Community Development Support CBO Community Based Organization CDD Community Driven Development CGPCP Physical Cultural Heritage Management Plan COPRODEP Community-Driven Project Development Councils CRC Community Reconstruction Centers ESMF Environmental and Social Management Framework GoH Government of Haiti IRR Internal Rates of Return ISPAN Institut de Sauvegarde du Patrimoine National (National Cultural Heritage Institute)MDOD Maître d’Ouvrage Délégué (Service Providers) NPV Net Present Values OM Operations Manual O&M Operation and Maintenance ORAF Operational Risk Assessment Framework PDO Project Development Objective PREKAD Neighborhood Housing Reconstruction Project PRODEPUR Urban Community Driven Development Project RAP Resettlement Action Plan

UCLBP Unité de Construction de Logements et de Bâtiments Publics (Unit for Construction of Housing and Public Buildings)

Vice President: Jorge Familiar Country Director: Mary A. Barton-Dock Sector Manager: Anna Wellenstein

Task Team Leader: Ali Alwahti

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HAITI

URBAN COMMUNITY DRIVEN DEVELOPMENT PROJECT (PRODEPUR)

CONTENTS

Page

Project Paper Data Sheet……………………………………………………………………..iii Project Paper………………………………………………………………………………… 1

I. Introduction…………………………………………………………………. 1

II. Background and Rationale for Additional Financing ………………………. 2

III. Proposed Changes…………………………………………………………... 9

IV. Appraisal Summary……………………………………………………….. 15 Annexes Annex 1: Revised Results Framework and Monitoring Indicators………………………... 20 Annex 2: Operational Risk Assessment Framework (ORAF)…………………………….. 27 Annex 3: Detailed Description of Modified or New Project Activities …….…………......32 MAP IBRD 40989………………………………………………………………………….36

iii

ADDITIONAL FINANCING DATA SHEET

Haiti

Haiti - Urban Community Driven Development Project - AF ( P149116 )

LATIN AMERICA AND CARIBBEAN

LCSDU .

Basic Information – Parent

Parent Project ID: P106699 Original EA Category: B - Partial Assessment

Current Closing Date: 30-Jun-2015

Basic Information – Additional Financing (AF)

Project ID: P149116 Additional Financing Type (from AUS):

Scale Up

Regional Vice President: Jorge Familiar Proposed EA Category: B - Partial Assessment

Country Director: Mary A. Barton-Dock Expected Effectiveness Date:

30-Sep-2014

Sector Director: Ede Jorge Ijjasz-Vasquez Expected Closing Date: 30-Jun-2016

Sector Manager: Anna Wellenstein Report No: PAD1014

Team Leader: Ali Alwahti

Borrower

Organization Name Contact Title Telephone Email

Project Financing Data–Parent ( Haiti - Urban Community Driven Development Project / PRODEPUR-P106699 )

Key Dates

Project Ln/Cr/TF Status Approval Date

Signing Date Effectiveness Date

Original Closing Date

Revised Closing Date

P106699 IDA-H3940 Effective

03-Jun-2008 30-Jun-2008 27-Oct-2008 31-Mar-2014 30-Jun-2015


26-Oct-2010 23-Nov-2010 21-Feb-2011 31-Mar-2014 30-Jun-2015

Disbursements

Project Ln/Cr/TF Status Currency Original Revised Cancelled

Disbursed

Undisbursed

% Disbursed


XDR 9.60 9.60 0.00 9.56 0.04 99.63

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XDR 19.90 19.90 0.00 12.78 7.12 64.21

Project Financing Data –Additional Financing Haiti - Urban Community Driven Development Project - AF ( P149116 )

[ ] Loan [ ] Grant [X] IDA Grant

[ ] Credit [ ] Guarantee [ ] Other

Total Project Cost: 7.50 Total Bank Financing: 7.50

Financing Gap: 0.00

Financing Source – Additional Financing (AF) Amount

BORROWER/RECIPIENT 0.00

IDA Grant 7.50

Total 7.50

Policy Waivers

Does the project depart from the CAS in content or in other significant respects?

No

Explanation

Does the project require any policy waiver(s)? No

Explanation

Team Composition

Bank Staff

Name Title Specialization Unit

Josue Akre Financial Management Specialist

LCSFM

Ali Alwahti Urban Specialist Team Leader LCSDU

Jean-Claude Balcet Consultant Consultant LCSDU

Margaret Patricia Henley Barrett

Consultant LCSDU

Ana F. Daza Language Program Assistant

Language Program Assistant

LCSDU

Sylvie Debomy Sr Urban Planner LCSDU

Rose Caline Desruisseaux-Cadet

E T Consultant LCSPT

Amadou Konare Consultant LCSEN

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Peter F. B. A. Lafere Social Development Specialist

LCSSO

Aboubacar Magassouba Consultant LCSPT

Djeanane Monfort Team Assistant Team Assistant LCC8C

Fabienne Mroczka Financial Management Specialist

Financial Management Specialist

LCSFM

Prosper Nindorera Senior Procurement Specialist

LCSPT

Victor Manuel Ordonez Conde

Senior Finance Officer Senior Finance Officer CTRLN

Ghada Youness Senior Counsel Senior Counsel LEGLE

Non Bank Staff

Name Title City

Locations

Country First Administrative Division

Location Planned Actual Comments

Haiti Departement de l'Artibonite

Saint-Marc

Haiti Departement de l'Ouest

Port-au-Prince

Haiti Centre Mirebalais X

Haiti Nord Milot X

Haiti Ouest Martissant X

Haiti Centre Hinche X

Haiti Republic of Haiti

Haiti Departement de l'Artibonite

Gonaives

Haiti Nord Dondon X

Haiti Departement du Nord

Cap-Haitien

Haiti Departement de l'Ouest

Cite Soleil

Sector Board

Agriculture and Rural Development

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Sectors / Climate Change

Sector (Maximum 5 and total % must equal 100)

Major Sector Sector % Adaptation Co-benefits %

Mitigation Co-benefits %

Water, sanitation and flood protection General water, sanitation and flood protection sector

40

Health and other social services Other social services 25

Public Administration, Law, and Justice

General public administration sector

15

Transportation Urban Transport 10

Education General education sector

10

Total 100

Themes

Theme (Maximum 5 and total % must equal 100)

Major theme Theme %

Social dev/gender/inclusion Participation and civic engagement 40

Urban development Urban services and housing for the poor 40

Urban development City-wide Infrastructure and Service Delivery

20

Sector Board

Urban Development

Sectors / Climate Change

Sector (Maximum 5 and total % must equal 100)

Major Sector Sector % Adaptation Co-benefits %

Mitigation Co-benefits %

Water, sanitation and flood protection General water, sanitation and flood protection sector

40

Health and other social services Other social services 25

Public Administration, Law, and Justice

General public administration sector

15

Transportation Urban Transport 10

Education General education sector

10

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Total 100

I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project.

Themes

Theme (Maximum 5 and total % must equal 100)

Major theme Theme %

Social dev/gender/inclusion Participation and civic engagement 40

Urban development Urban services and housing for the poor 40

Urban development City-wide Infrastructure and Service Delivery

20

Total 100

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I. Introduction

1. This Project Paper seeks the approval of the Executive Directors to provide an Additional Grant in the amount of SDR 4.9 million (US$7.50 million equivalent) to the Republic of Haiti (GoH) to scale up the Urban Community Driven Development Project – PRODEPUR (P106699; IDA Grant Nos. H3940-HT, and H6210-HT). 2. The proposed Additional Financing (AF) also includes a Level I Restructuring given that, the Project Development Objective (PDO) will be slightly revised to correct a past minor discrepancy between the project’s document and the legal agreement1, and, as part of the geographic extension, it would intervene in two towns located within the perimeter of the National History Park (Parc National Historique), a UNESCO World Heritage Site. This triggers two new safeguard policies: OP 4.04(Natural Habitats); and OP 4.36 (Forests ).

3. The proposed AF would finance the scaling up of activities and investments of the same nature as that of the Parent Project. It will finance about 160 additional urban community subprojects in four municipalities covered by the Parent Project as well as extending to four newly covered secondary cities: Hinche and Mirebalais in the Center Department, Dondon and Milot in the North Department, as well as technical assistance to support the subproject cycle; capacity building and institutional strengthening; support to housing repair and reconstruction and; project administration, supervision, and monitoring and evaluation activities. 4. Under the proposed Additional Financing (AF), the results indicators and expected outcomes would remain the same as for the Parent Project. The Project Development Objective (PDO) will be slightly revised to correct a past minor discrepancy. The names of the components will also be revised to better capture ongoing activities. Investments and technical assistance activities would be of the same nature, however scaled up. Final targets have been adjusted in the Results and Monitoring Framework to reflect the scaling up of activities. Two new indicators have been added to better account for inclusion of women in the proposed activities. The geographic scope of subproject activities would be expanded to include secondary cities in the North, Center and Artibonite Departments, considering: (i) the importance of secondary cities for poverty reduction and balanced economic development in the country; and (ii) the need for synergy with two upcoming Bank projects: Cultural Heritage Preservation and Tourism Sector Development Support Project (P144614) (North and North-East Departments), and Center and Artibonite Regional Development Project (P133352), both already approved by the Board.

1 The PDO in the PAD is “to improve access to and satisfaction with: (i) basic and social infrastructure and services, including housing repair, reconstruction and community infrastructure improvement needed as a result of the Emergency; and (ii) income-generating opportunities for residents of targeted disadvantaged urban areas,” while the PDO in the legal agreement is: “to improve access to and satisfaction with: (i) basic and social infrastructure and services, including housing repair, reconstruction and community infrastructure improvement needed as a result of the Emergency; and (ii) income-generating opportunities for residents of selected disadvantaged urban areas.”

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II. Background and Rationale for Additional Financing 5. Situations of Urgent Need of Assistance or Capacity Constraints. Haiti is classified by the World Bank as a Fragile and Conflict-Affected State (FCS), with a Country Policy and Institutional Assessment (CPIA) rating of 2.90, and the presence of a United Nations (UN) peace-keeping force for over nine consecutive years. Accordingly, the proposed AF seeks condensed processing timelines for Board approval, invoking special considerations of OP/BP 10.00. 6. The proposed AF aims to strengthen local institutions and is fully aligned with the Haiti Interim Strategy Note FY13-FY14 (Report no 71885-HT) discussed by the Executive Directors on September 27, 2012. Indeed, one of the central themes of the ISN is strengthening governance, as well as reducing vulnerability and increase resilience. 7. Strategic Context. With support from the World Bank, GoH is working to improve living conditions in Haiti’s disadvantaged urban areas, where conditions were amongst the most difficult in the Americas, even before the earthquake that struck the country on January 12, 2010. Since 2008, joint actions of the GoH and the United Nations Stabilization Mission (MINUSTAH) have helped reduce crime and violence permitting a return to relative normalcy. The Bank program and this project focus on improving and/or restoring basic services and creating economic opportunities for disadvantaged neighborhoods. Rehabilitating neighborhoods and increasing income generating opportunities for the poor remain priorities for Haiti, as the country continues to rebuild after the devastating earthquake of 2010 and begins to plan for the longer term. The disaster caused 200,000 deaths, displaced 1.2 million people and cost 120% of GDP2. Over the last four years, Haiti has begun to recover and the country shows modest growth and it has seen its security indicators improve in 2013. However, much remains to be done in disadvantaged neighborhoods where conditions were already amongst the most difficult in the Americas before 2010. Improving and restoring basic infrastructure and providing services, and creating new economic opportunities for dwellers through community based participatory processes are important factors contributing to address some of these issues. In the context of continued fragility, pervasive poverty, and lagging social indicators, it is crucial that this work continues.

8. Contribution to Poverty Reduction and Shared Prosperity. The Project aims to build better living conditions, services and job opportunities in disadvantaged urban areas in Haiti. Cité-Soleil, in the West Department, highlights the key challenges faced by Haiti today: high demographic pressure on metropolitan areas, without accompanied access to basic infrastructure and services, such as health and education. Over half of the population in the eight communes targeted under the proposed activities lives in extreme poverty. 9. Building Capacity for Service Delivery. Institutions at the local level are weak with little or no capacity to implement basic investments or deliver critical services to the local population. The proposed activities are expected to strengthen that capacity by linking Community Driven Development (CDD) mechanisms designed to operate with functioning local

2 Haiti Interim Strategy Note FY13-FY14 (Report no 71885-HT).

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institutions at the local and communal levels, while aiming to ensure sustainable implementation of investments and service delivery, and reinforce local institutions. As such, the proposed activities under the AF would support immediate service delivery and serve to strengthen the capacity of local systems to deliver those services. In this regard, Community-Driven Project Development Councils (COPRODEP) which identify and develop community and municipal subprojects, will be transformed into Councils for Community Development Support (CADEC). CADECs differ from COPRODEPs in that they integrate the local government and become permanent features of local institutions at the communal level, rather than temporary structures financed by the project. Synergies with other Bank projects, as described below, would further reinforce the required local capacity as these projects intend to build institutional capacity at the local level. 10. Synergy with other Bank projects. The proposed new activities will complement two other Bank projects approved by the Board on May 19, 2014: the Cultural Heritage Preservation and Tourism Sector Support Project (P144614) and the Center and Artibonite Regional Development Project (P133352). The Cultural Heritage Preservation and Tourism Sector Support Project supports tourism development to increase the attractiveness of the cultural heritage sites in North of Haïti for tourists and improve the living environment for the residents living in the area; while the Center and Artibonite Regional Development Project supports the development of the Centre Artibonite Loop region, primarily by enhancing all-weather connectivity and logistics for producers, and the region’s resilience to climate change. Both projects include participatory planning and subproject activities to be implemented with municipalities and local communities. The proposed activities under this proposed AF would support the scaling up of community driven development activities in communities in four municipalities in the North and Center departments: Milot, Dondon, Hinche and Mirebalais. The respective interventions of the three projects would be complementary as the two new projects would fund sector-specific (tourism, transport, agriculture-based) large subprojects at the municipal and communal levels; while this project will intervene at community level with small sub-projects. All three projects would use similar participatory mechanisms embedded in the decentralized structures of the commune. Status of Parent Project

11. Project Financing. PRODEPUR is financed by two IDA Grants. The Parent Project, PRODEPUR (IDA Grant H3940-HT), in the amount of SDR9.6 million (US$15.7 million equivalent), was approved by the Board on June 3, 2008 and became effective on October 27, 2008. It supports Community Driven Development (CDD) activities in urban disadvantaged neighborhoods. An Additional Financing (IDA Grant H6210-HT), in the amount of SDR19.9 million (US$30 million equivalent), was approved by the Board on October 26, 2010 and became effective on February 21, 2011. It was prepared as an emergency response project following the January 12, 2010 earthquake and supports housing reconstruction activities. 12. Project Objectives and Description. The Project Development Objective (PDO), as modified under the first AF, is to improve access to and satisfaction with: (i) basic and social infrastructure and services, including housing repair, reconstruction and community

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infrastructure improvement needed as a result of the Emergency; and (ii) income-generating opportunities for residents of targeted disadvantaged urban areas.

13. The Parent Project was designed as a CDD operation with most funding earmarked for community subprojects. Following the January 12, 2010 earthquake, the first Additional Financing supported the addition of Housing Repair and Reconstruction activities All components are implemented through a participatory process in which Community-Driven Project Development Councils (COPRODEPs) were created to propose, select, implement and maintain investment subprojects implemented jointly with Community Based Organizations (CBOs). The Project provides financing for community subprojects focused on basic municipal infrastructure, housing and reconstruction, social infrastructure, and productive/income generating opportunities.

14. The ongoing Project (Parent Project and first Additional Financing) consists of four Components:

a) Urban Community Subproject Preparation and Implementation Component ($13.0m)

finances community demand-driven and municipal subprojects in 14 targeted Priority Zones of 6 municipalities. Specific results include: (i) the establishment of 14 Community Councils (COPRODEP) in targeted areas of Port-au-Prince and three other cities; and (ii) the financing of 493 subprojects (467 subprojects were originally planned). This Component has fully disbursed;

b) Capacity building, Institutional Strengthening Component ($0.3m) finances technical assistance such as training-of-trainers, capacity building, technical workshops, and consultant services aimed at strengthening governance, participatory development, supervision, and coordination of project beneficiaries and stakeholders. This Component has fully disbursed.

c) Housing Repair and Reconstruction Component ($29.0m) finances housing and community recovery and reconstruction activities, specifically debris removal, housing repair and reconstruction through cash grants, infrastructure improvement, as well as advisory services to support urban development and housing strategies. Several significant activities were completed over the last 6 months, particularly regarding infrastructure improvement. These include: (i) rehabilitation of more than 50 street corridors; (ii) repair or reconstruction of 1,200 houses, allowing about 1,740 families to return to safe neighborhoods with safe housing options, or to receive a rental subsidy; (iii) completion of the design of a multi-family complex; (iv) completion of technical designs of key roads to be rehabilitated; and (v) commencement of works for the first large road. As a result of investments under this Component, approximately 24,800 households are benefitting from community-wide upgrading, including basic infrastructure and services. Seventy-four (74) percent of the funds under this component are committed and fifty six (56) percent disbursed; and

d) Project Administration, Supervision, and Monitoring and Evaluation Component ($2.4m) finances incremental costs associated with the project’s implementation, administration, supervision, monitoring and evaluation. This Component has fully disbursed.

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15. Status of Project Implementation. The last two Implementation Support and Results (ISRs) reports prior to the November 2013 rated both project Implementation Progress and achievement of Development Objective as Moderately Satisfactory. The Implementation Progress rating was downgraded to Moderately Unsatisfactory in November 2013, due to noted weaknesses in financial management and reporting, monitoring and evaluation and communication. Action plans to mitigate these issues were prepared in December 2013 and BMPAD took pro-active measures to meet all agreed milestones in a timely manner. As a result, all ratings were upgraded to Moderately Satisfactory by the end of January 2014. However, since the project was temporarily rated Moderately Unsatisfactory during the period November 2013 – January 2014, an exception to policy OP/BP 10.00 was requested and granted by RVP on March 26, 2014. Additionally, the Project has since then been restructured, approved on March 24, 2014, to further address implementation challenges related to the types of housing construction that was foreseen at project design that proved challenging to be implemented by the BMPAD. The GoH requested to redirect housing interventions to favor building multifamily housing and rental unit promotion as well as neighborhood infrastructure investments rather than building individual houses. The Project is also fully compliant with all conditions and legal covenants.

16. PRODEPUR is on track to achieve its PDO. CDD activities were completed as of September 30, 2013 with a disbursement of USD 14.7 million (99.63% of the IDA Grant H3940-HT). All 14 COPRODEPs have been established in targeted areas of Port-au-Prince, Cap Haitien, Gonaives and Saint Marc. The initial target was 467 subprojects, however, due to efficiencies the project was able to finance a total of 493 subprojects. Most of the indicator targets, including the outcome indicators have already been met. Debris removal is fully completed and housing repairs and community reconstruction and recovery activities are on track. About US$17.1 million (56 percent of the total AF IDA Grant H6210-HT) has disbursed as of March 20, 2014. The implementing agency, the Bureau de Monétisation des Programmes d’Aide au Développement (BMPAD), in early in 2013, undertook an internal restructuring establishing a new staffing plan to further strengthen its implementation capacity with a focus on its weaker areas, and hired additional human resources and skills needed to accommodate its additional workload.

17. The project continues to represent a successful CDD model in the context of Haiti. It has validated the effectiveness of direct transfer of resources to local communities for delivering priority services, enhancing governance and transparency, and building social capital as a solution to community involvement and conflict resolution in impoverished urban areas. The Additional Financing

18. Financing Alternatives. Several alternatives were examined, including: (a) a standalone project; (b) a GoH financing; or (c) a donor-funded project. After consultations with stakeholders and the GoH, and based on the lessons learned from the Parent Project to maximize its economic and social benefits, an AF was chosen to be financed from uncommitted funds under International Development Association's (IDA16) allocated to Haiti in July 2011 to support reconstruction after the January 2010 earthquake.

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19. Project Activities to be Supported by the Proposed Additional Financing. The proposed AF would finance the scaling up of activities and investments of the same type and in intervention areas similar to those of the Parent Project. Considering the importance of secondary cities for poverty reduction and balanced economic development in the country, the geographic scope of subproject activities for the proposed AF would be expanded to include secondary cities in the North and Center Departments. Funds would be allocated to meet the cost of an additional number of subprojects and cash grants, as well as the scaling-up of support activities, such as further strengthening BMPAD’s capacity, and preparation of analytical work to fine-tune the participatory process underpinning PRODEPUR’s implementation. The majority of the additional funds would be used to finance additional subprojects under Component 1 (US$5.90 million), as well as the scaling-up of support activities under Components 2 and 4 (US$250,000 and US$650,000 respectively), such as further strengthening BMPAD’s capacity and preparation of the above analytical work . A smaller amount of the additional funds ($700,000) would be used to finance additional housing repairs and small infrastructure upgrade under Component 3. 20. The proposed AF, based on the CDD designed-mechanisms of the Parent Project, would further reinforce local institutions. This is expected to impact both the quality of service delivery and the capacity of local country systems to deliver services. As such, the proposed AF would strengthen ownership and sustainability of the subprojects. The study on local development envisioned under Component 2 would complement existing GoH’s strategic documents and planning related to the long-term decentralization framework. It would lay the groundwork for the next generation of CDD projects and service delivery through local governments. In addition, the proposed AF would gradually move away from the emergency focus adopted following the 2010 earthquake and focus on the longer-term development challenge of new housing rather than emergency reconstruction. Consistent with GoH’s Housing Unit (Unité de Construction de Logements et de Bâtiments Publics – UCLBP) guidelines, the focus of the Component 3 - Housing Repair and Reconstruction would gradually shift from the recent post-disaster housing reconstruction to “self-construction” or “assisted-construction” and rebuilding, to better respond to house-owner’s needs, developing greater ownership of project activities, and hence promoting long-term sustainable habitat.

21. The detailed project description of scaled up activities can be found in Annex 3. 22. Expected Outcomes. The proposed AF would maintain the same intermediate indicators as the Parent Project. Final targets are adjusted in line with the scaling up of the proposed AF. Two new indicators have been added to account for inclusion of women in the proposed activities, which include: (i) percentage of women holding membership in COPRODEP’s executive committee; and (ii) percentage of prioritized projects submitted by women’s CBOs. The revised Results Framework can be found in Annex 1. 23. Consistency with PDO. There would be a slight revision to the Project’s PDO to reflect a past minor discrepancy between the project document and the legal document, but activities identified under the proposed AF remain consistent with the current PDO. Project components names will be revised to better capture the ongoing activities, which would remain unchanged

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with the same type of physical investments and technical assistance. Only the geographic scope of activities would be expanded.

24. Project Risks. The overall implementation risk rating under the Parent Project was High. Haiti’s continued economic and political volatility, as well as its vulnerability to natural disasters, continue to pose significant risks to project implementation. However, the mitigation measures developed under the Parent Project to address these risks have proven effective, particularly regarding risks such as political interference, misappropriation, or misuse of community resources. The establishment of strict implementation rules, and transparent, inclusive and participatory processes for community subproject selection and financing, has significantly reduced the potential for discretional allocations, allowing all eligible beneficiaries – including women and youth – to participate effectively. Furthermore, the emphasis placed on capacity building, systematic training, and technical assistance has enabled community organizations and residents’ groups at the grassroots level to efficiently implement and manage subprojects. Finally, the project implementing agency, BMPAD has accumulated valuable experience in project implementation, and is now equipped to handle appropriate mitigation measures as they arise, and additional technical assistance will be provided to BMPAD under the proposed AF. As such, it is expected that risks would be well managed under the proposed AF activities , and the overall project risks are therefore considered to be Moderate. The detailed Operational Risk Assessment Framework (ORAF) can be found in Annex 2. 25. Implementation Arrangements. The proposed AF activities would be implemented using the current recognized and accepted framework of the Parent Project. BMPAD, housed within the Ministry of Economy and Finance (MEF), would continue to serve as implementing agency responsible for overall project coordination and management, with subproject implementation carried out by the COPRODEPs and associated network of CBOs. The proposed AF would also finance technical assistance to encourage municipalities to play an increasing role in the program to ensure coordination and ownership at communal level, hence gradually laying the basis for mainstreaming the project into decentralized institutions. To assist in this effort, the model of transforming the COPRODEPs into CADECs, developed under the Rural Community Driven Development Project (P093640), will be used in the targeted geographic areas where COPRODEPs exist, and where new ones will be established. The CADECs are expected to strengthen their linkage with the municipalities by becoming a more permanent public structures that foster local governance in harmony with the local development framework coordinated by the municipality. The implementing agency, BMPAD has the capacity to absorb additional funds, particularly as its staff is now sufficient in number and have the required skills for effective implementation. BMPAD staff would receive further targeted training, as needed, to develop its capacity to manage the proposed AF activities, particularly regarding Monitoring and Evaluation. The procurement, disbursement, and financial arrangements in place are efficient and would remain unchanged. 26. Expected Benefits. The precise number of beneficiaries under the proposed AF is difficult to estimate since activities would be demand-driven. Project activities would target and benefit the vulnerable segments of the population through improvement in livelihood conditions and generation of additional revenue. The proposed AF would promote new ways of doing business (e.g., self-construction of housing, and new procedures for social vs. income generating

8

subprojects) and take advantage of economies of scale in supporting subprojects, hence improving the efficiency of its grassroots interventions and corresponding benefits.

27. Safeguards. The Parent Project was assigned an environmental screening Category B and this would remain unchanged under the proposed AF. However, due to the introduction of new intervention areas in the North department, AF-funded activities would intervene in two cities, Dondon and Milot, which are located within the perimeter of the National History Park (Parc National Historique), a UNESCO World Heritage Site. On that basis and for the purpose of consistency with the Bank-financed Cultural Heritage Preservation and Tourism Sector Development Support Project (P144614) intervening in the same areas, two new safeguard policies, OP 4.04 (Natural Habitats) and OP 4.36 (Forests) are triggered. As such, and to ensure consistency between the proposed AF investments and new areas of intervention, the existing Environmental and Social Management Framework (ESMF) and the Resettlement Policy Framework (RPF) have been updated and re-disclosed in country and in the Bank’s website. 28. Monitoring and Evaluation (M&E). The indicators of the Results Framework and Monitoring would remain unchanged, as they continue to be relevant and would apply for activities under the proposed AF, but two new indicators to track the gender content of the project would be added. The targets for these indicators would be updated to reflect the increase in scope of the proposed activities. Additionally, BMPAD’s capacity for M&E would be further strengthened through targeted training, as needed, to develop its capacity to manage the proposed AF activities in this area.

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III. Proposed Changes

Summary of Proposed Changes

The proposed AF would finance the scaling up of investment activities and technical assistance of the Parent Project. These activities would remain of the same type. Only the geographic scope of subproject activities would change. Indeed, considering the importance of secondary cities for poverty reduction and balanced economic development in the country, the geographic scope of subproject activities would be expanded to include secondary cities in the North and Center Departments. Funds would be allocated to meet the cost of an additional number of subprojects and cash grants, as well as the scaling-up of support activities, such as further strengthening BMPAD’s capacity, and preparation of analytical work to fine-tune the participatory process underpinning PRODEPUR’s implementation. The majority of additional funds would be used to finance additional cash grants for subprojects under Component 1, as well as the scaling-up of support activities under Components 2 and 4. A small part of the additional funds would be used to finance additional housing repairs and small infrastructure upgrade under Component 3.

Change in Implementing Agency Yes [ ] No [ X ]

Change in Project's Development Objectives Yes [ X ] No [ ]

Change in Results Framework Yes [ X ] No [ ]

Change in Safeguard Policies Triggered Yes [ X ] No [ ]

Change of EA category Yes [ ] No [ X ]

Other Changes to Safeguards Yes [ ] No [ X ]

Change in Legal Covenants Yes [ ] No [ X ]

Change in Loan Closing Date(s) Yes [ X ] No [ ]

Cancellations Proposed Yes [ ] No [ X ]

Change in Disbursement Arrangements Yes [ ] No [ X ]

Reallocation between Disbursement Categories Yes [ ] No [ X ]

Change in Disbursement Estimates Yes [ X ] No [ ]

Change to Components and Cost Yes [ X ] No [ ]

Change in Institutional Arrangements Yes [ ] No [ X ]

Change in Financial Management Yes [ ] No [ X ]

Change in Procurement Yes [ ] No [ X ]

Change in Implementation Schedule Yes [ ] No [ X ]

Other Change(s) Yes [ ] No [ X ]

Development Objective/Results

Project’s Development Objectives

Original PDO

To improve access to (and satisfaction with): a) basic and social infrastructure and services; and b) income generating opportunities for residents of targeted disadvantaged urban areas. This objective will be achieved through a participatory processing which community-based organizations propose, select, implement, and maintain subprojects.

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Current PDO

To improve access to, and satisfaction with: (i) basic and social infrastructure and services, including housing repair, reconstruction and community infrastructure improvements needed as a result of the emergency; and (ii) income-generating opportunities for residents of targeted disadvantaged urban areas.

Change in Project's Development Objectives

Explanation:

There would be a slight revision to the Project’s PDO to reflect a past minor discrepancy between the previous project document and the legal document, but activities identified under the proposed AF remain consistent with the current PDO.

Proposed New PDO - Additional Financing (AF)

To improve access to, and satisfaction with: (i) basic and social infrastructure and services, including housing repair, reconstruction and community infrastructure improvements needed as a result of the Emergency; and (ii) income-generating opportunities for residents of selected disadvantaged urban areas.

Change in Results Framework

Explanation:

The indicators of the Results Framework and Monitoring would remain unchanged, as they continue to be relevant and would apply for activities under the proposed AF, but two new indicators to track the gender content of the project would be added. The targets for these indicators would be updated to reflect the increase in scope of the proposed activities.

Compliance

Change in Safeguard Policies Triggered

Explanation:

The Parent Project was assigned an environmental screening Category B and this would remain unchanged under the proposed AF. However, due to the introduction of new intervention areas in the North department, activities under the proposed AF would intervene in two cities, Dondon and Milot, which are located within the perimeter of the National History Park (Parc National Historique), a UNESCO World Heritage Site. For the purpose of consistency with the Bank-financed Cultural Heritage Preservation and Tourism Sector Development Support Project (P144614) intervening in the same areas, two new safeguard policies, OP 4.04 (Natural Habitats) and OP 4.36 (Forests) are triggered. As such, and to ensure consistency between the proposed AF investments and new areas of intervention, the existing Environmental and Social Management Framework (ESMF) and the Resettlement Policy Framework (RPF) have been updated and re-disclosed in country and in the Bank’s website.

Current and Proposed Safeguard Policies Triggered:

Current(from Current Parent ISDS)

Proposed (from Additional Financing ISDS)

Environmental Assessment (OP/BP 4.01) Yes Yes

Natural Habitats (OP/BP 4.04) No Yes

Forests (OP/BP 4.36) No Yes

Pest Management (OP 4.09) No No

Physical Cultural Resources (OP/BP 4.11) Yes Yes

Indigenous Peoples (OP) (BP 4.10) No No

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Involuntary Resettlement (OP/BP 4.12) Yes Yes

Safety of Dams (OP/BP 4.37) No No

Projects on International Waterways (OP/BP 7.50)

No No

Projects in Disputed Areas (OP/BP 7.60) No No

Covenants - Additional Financing ( Haiti - Urban Community Driven Development Project - AF - P149116 )

Source of Funds

Finance Agreement Reference

Description of Covenants

Date Due Recurrent Frequency Action

IDAT

ARTICLE V EFFECTIVENESS; TERMINATION

The Subsidiary Agreement has been entered into between the Recipient and BMPAD, in a manner acceptable to the Association, and it has been duly authorized or ratified by the Recipient and BMPAD and is legally binding upon both parties in accordance with its terms.

30-Sep-2014

New

Conditions

Source Of Fund Name Type IDAT The Additional Subsidiary

Agreement has been duly authorized or ratified

Effectiveness

Description of Condition The Additional Subsidiary Agreement has been duly authorized or ratified by the Recipient and BMPAD and is legally binding upon the Recipient and BMPAD in accordance with its terms.

Finance

Loan Closing Date - Additional Financing ( Haiti - Urban Community Driven Development Project - AF - P149116 )

Source of Funds Proposed Additional Financing Loan Closing Date

IDA Grant 30-Jun-2016

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Loan Closing Date(s) - Parent ( Haiti - Urban Community Driven Development Project / PRODEPUR - P106699 )

Explanation:

The Grant Closing Date for both IDA-H3940, and IDA-H6210 would be extended by one year from June 30, 2015 to June 30, 2016.

Ln/Cr/TF Status Original Closing

Date Current Closing Date

Proposed Closing Date

Previous Closing Date(s)

IDA-H3940 Effective 31-Mar-2014 31-Mar-2014 30-Jun-2016 30-Jun-2015

IDA-H6210 Effective 31-Mar-2014 31-Mar-2014 30-Jun-2016 31-Mar-2014, 30-

Jun-2015

Change in Disbursement Estimates (including all sources of Financing)

Explanation:

Additional funds would be added to the Parent Project.

Expected Disbursements (in USD Million) (including all Sources of Financing)

Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023

Annual 47.12 5.08 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Cumulative 47.12 52.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Allocations - Additional Financing ( Haiti - Urban Community Driven Development Project - AF - P149116 )

Source of Fund

Currency Category of Expenditure

Allocation Disbursement %(Type Total)

Proposed Proposed

IDA-H9730 XDR 1) Urban Community Subprojects under Part 1 of the Project

3,050,000.00 100.00

IDA-H9730 XDR 2) Cash Grants under Part 3 (b) of the Project

264,000.00 100.00

IDA-H9730 XDR 3) Goods, works, non-consult. serv., consult. serv. Part 3

198,000.00 100.00

IDA-H9730 XDR 4) Consultants’ services a) Parts 1 and 3(b)

795,000.00 100.00

IDA-H9730 XDR 4) Consultants’ services b) Parts 2a) i) ii), b), c), d), 4

370,000.00 100.00

IDA-H9730 XDR

5) Operating Costs for Part 4

223,000.00 100.00

Total: 4,900,000.00

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Current Proposed Current Proposed

IDA-H3940 XDR Urban Comm. SubProj PART 1

5,239,246.00 0.00 100.00 0.00

IDA-H3940

GO & NON-CS OTHER THAN CAT. 1

43,061.00 0.00 100.00 0.00

IDA-H3940 CS BY MDODS FOR PART 1

2,505,872.00 0.00 0.00 0.00

IDA-H3940 CS PART 2 & 3, TRNG AND AUDITS

620,000.00 0.00 100.00 0.00

IDA-H3940 DISB - OPERATING COSTS

1,191,821.00 0.00 100.00 0.00

IDA-H3940 UNALLOCATED 0.00 0.00 100.00 0.00

IDA-H3940 Designated Account 0.00 0.00 0.00 0.00

Total: 9,600,000.00 0.00

IDA-H6210 XDR Cash Grants under Part 1(b)

3,870,706.53 0.00 100.00 0.00

IDA-H6210

GO, CW & NON-CS for Part 1a,c & d

10,103,326.08 0.00 100.00 0.00

IDA-H6210 CS BY MDODS FOR Part 1 & TRNG

3,709,075.07 0.00 0.00 0.00

IDA-H6210 CS Part 1 & 2, TRNG and AUDITS

1,622,636.79 0.00 100.00 0.00

IDA-H6210 OPERATING COSTS 594,255.53 0.00 100.00 0.00

IDA-H6210 UNALLOCATED 0.00 0.00 0.00 0.00



IDA-H6210 UN Advances 0.00 0.00 0.00 0.00

Total: 19,900,000.00 0.00

Components

Change to Components and Cost

Explanation:

The proposed AF in the amount of US$7.50 million would be used to scale up existing activities and investments of the same type and similar intervention areas to the Parent Project, with an extension of the geographic scope of subproject activities. There would be no change to the overall project design, and the project components names will be revised to better capture the ongoing activities, which would remain unchanged with the same type of physical investments and technical assistance. Only the geographic scope of activities would be expanded. The scaling up of activities and investments are in line with the objectives

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of the Parent Project, and would be the best mechanism to maximize development impact. The magnitude of the scaled up activities can be easily accommodated within the context of the existing project framework. Moreover, most of the scaled up activities are an expansion of activities of a similar type and nature in similar geographic areas.The proposed AF would be used to increase all the components under PRODEPUR (The detailed project description of scaled up activities can be found in Annex 3): Component 1: Urban Community Subproject Preparation and Implementation, in the amount of US$5.90 million; Component 2: Capacity building, Institutional Strengthening, in the amount of US$250,000; Component 3: Housing Repair and Reconstruction, in the amount of US$700,000; and Component 4: Project Administration, Supervision, and Monitoring and Evaluation, in the amount of US$650,000. Component 1: Urban Community Subproject Preparation and Implementation (Increase by US$5.90 million) This component would finance about 160 additional subprojects in four municipalities covered by the Parent Project, namely Cité Soleil and Martissant (Metropolitan Area of Port-au-Prince), St. Marc (Artibonite Department), and Cap Haitian (North Department). It would also finance subprojects in four newly covered secondary cities: Hinche and Mirebalais in the Center Department, Dondon and Milot in the North Department. This component would also finance the provision of technical assistance to support CBOs to manage the subproject cycle. It would finance: (i) training and technical assistance to the COPRODEPs so that they can assume adequately their responsibilities related to the subproject cycle; and (ii) communication and information campaigns to ensure the largest possible participation of potential beneficiaries targeted by the project. Component 2: Capacity building, Institutional Strengthening (Increase by US$250,000) This component would finance additional technical assistance and capacity building activities to strengthen the implementation of subprojects under Component 1. These include: (i) training-of-trainer events in basic management, administration, accounting, and financial management for COPRODEPs and municipal government officials; (ii) capacity-building and technical assistance to strengthen governance, participatory development, supervision, and coordination capacity at the municipal-government level and to relevant ministerial staff; (iii) workshops with service providers to harmonize practices to accompany CBOs and COPRODEPs in carrying out the activities under Component 1; (iv) training of BMPAD staff in order to effectively supervise overall project implementation; (v) various consultant services, including possible preparation of future operation and assessment of ways through which the Haitian Diaspora might be mobilized to finance and provide technical expertise to the community subprojects; and (vi) policy dialogue to engage the Government of Haiti (GoH) and other relevant stakeholders on a medium- to long-term national strategy to facilitate the mainstreaming of the urban CDD approach and mechanisms. Additionally, based on lessons learned under the Parent Project, the proposed AF would incorporate capacity-building activities tailored to the context of disadvantaged urban areas. These include: (i) training on local and participatory governance, public administration, social accountability, transparency, and reporting; (ii) training on donor coordination facilitation at the disadvantaged urban area level, especially in disadvantaged urban areas where many donors are active; and (iii) training on participatory processes for geographic and administrative demarcation of the disadvantaged urban areas as needed.

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Component 3: Housing Repair and Reconstruction (Increase by US$700,000) This component, under the guidance of the GoH housing coordinating unit, UCBLP, would finance the provision of grants to fund additional repair, expansion and reconstruction of damaged housing stock, and the upgrade of small infrastructure in the Martissant neighborhood of Port-au-Prince. Grants would be disbursed in successive tranches upon verification by Community Reconstruction Committees of conformity of construction with approved designs. The neighborhood of Martissant was chosen to: i) be in line with the Parent Project strategy of building social cohesion among communities affected by violent crime; ii) build cohesion within adjacent neighborhoods that have been receiving similar support from the Parent Project in Carrefour Feuilles and from other development partners (American Red Cross in the neighborhood of Campeche), and iii) to support a neighborhood that has not previously been supported by development partners’ financing. Houses to be repaired in the neighborhood have been evaluated since the Earthquake of January 2012 and the proposed AF will use the beneficiary selection method being updated by the Ministry of Public Works to identify the beneficiaries. Component 4: Project Administration, Supervision, and Monitoring and Evaluation (Increase by US$650,000) This component would finance incremental costs associated with project implementation, administration, supervision, monitoring and evaluation by the implementing agency, the BMPAD. Items to be financed would include the hiring of additional staff, consulting services, office equipment, and other project-related miscellaneous expenditure.

Current Component Name

Proposed Component Name

Current Cost (US$M)

Proposed Cost (US$M)

Action

Community Subproject Funding, Management, and Support

Component 1. Urban Community Subproject Preparation and Implementation

13.00 18.90 Revised

Capacity Building, technical assistance

Component 2. Capacity building, Institutional Strengthening

0.30 0.55 Revised

Housing Repair and Reconstruction

Component 3. Housing Repair and Reconstruction

29.00 29.70 Revised

Project Administration, Supervision, and Monitoring and Evaluation

Component 4. Project Administration, Supervision, and Monitoring and Evaluation

2.40 3.05 Revised

Total: 44.70 52.20

IV. Appraisal Summary

Economic and Financial Analysis

Explanation:

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Presentation of analysis. Two types of subprojects would be implemented under the proposed AF: (i) basic and social infrastructure subprojects designed to provide facilities and services to local communities; and (ii) income generating subprojects expected to make profits. Given the demand-driven nature of the proposed AF, it is not possible to know precisely a priori how the resources would be allocated amongst the different types of subprojects. Therefore, a full ex-ante estimation of cost-effectiveness, economic rate of return, and fiscal impact is not readily possible. However, the following partial analysis was made using data gathered during the implementation of the Parent Project: (i) a qualitative analysis of cost-effectiveness, to assess the sustainability of basic and social infrastructure subprojects; (ii) a cost-benefit analysis, to evaluate the viability of profit generating subprojects; (iii) an assessment of the coverage of O&M and investment renewal costs regarding basic infrastructure subprojects; and (iv) a quick review of the overall project fiscal impact. The above analysis demonstrates that subprojects exhibit high cost efficiency, that they are economically and financially viable and that the overall fiscal impact of the portfolio for the GoH is positive. Below is a brief summary of points (ii) and (iii): Cost-benefit analysis of income generating subprojects. The analysis was performed using the Parent Project’s M&E data over the period July 2011 to June 2013. A sample was purposely selected to be representative of the main categories of subprojects likely to be selected by beneficiaries based on PRODEDUR’s experience (water purification, food store, hardware store, cybercafé, bakery, cold storage and ice making, and chicken production). At the time the data were collected, the subprojects selected were fully completed, so that the data reflected actual costs and benefits at full subproject operation. The computed IRRs are positive for all subprojects. However they are lower than 10 percent for two types of subprojects (food store and chicken production) with a consequent negative NPV (10 percent is the discount rate selected as reflecting Haiti’s borrowing cost). Normally, no subproject exhibiting low IRRs or negative NPVs should be accepted. However, better results are expected during the proposed AF’s project implementation. This is due to a marked improvement in the business environment in the poor urban areas targeted in the very recent past as opposed to that prevailing for earlier PRODEPUR subprojects during the period 2011-2013. As such, the viability of future business undertakings is estimated to be much higher. Assessment of cost recovery of infrastructure subprojects. Two subprojects from the Parent Project were reviewed for this assessment: a water supply (water ‘kiosk’) and an electrification (extension of the electric grid) subproject. The analysis demonstrates that, in the context of poor urban areas of Haiti, as it is the case in most poor urban areas elsewhere, there is high willingness to pay for public services to the extent that services are produced at the required standards and without disruption. The CBOs charge a user fee for the services produced by these two subprojects. PRODEPUR’s M&E data reveal that indeed beneficiaries are more than willing to pay for the fees, and that the fees are more than sufficient to cover regular O&M as well as equipment renewal. The water kiosk project has an IRR of 30 percent and a pay-back period of 4.3 years to recover investments. The electrification subproject exhibit even better results with an IRR of 75 percent and a pay-back period of 2.3 years.

Technical Analysis

Explanation:

The proposed additional subproject activities, technical assistance, institutional strengthening, and housing repair activities have been evaluated and were found to be consistent with the short- and long-term objectives of the project. The proposed AF was determined based on economic benefits and priorities identified by the GoH. The general sites of the proposed activities were examined and determined to be viable locations for similar activities and subprojects to that of the Parent Project. The technical feasibility of the proposed project has been demonstrated by results already achieved under the Parent project for both community and municipal subprojects as well the Housing repairs activities.

17

Community subprojects will be limited in scope (micro grant) with simple and conventional design and without major complex civil works. In addition, lessons learned regarding needed technical improvements (for example, allowing greater time for subproject execution and the finalizing of O&M arrangements) have also been incorporated into the design of this scaled-up operation. Estimates of investment costs, physical contingencies, and prices of inputs and outputs are based on actual data from the Parent Project and are considered accurate. Technical standards of specific subprojects, particularly those for which community demand is high, will be ensured through standardized designs (including engineering aspects, technical, financial, and economic feasibility, O&M, simple environmental guidelines, and cost parameters). All subprojects will be screened by qualified MDOD technical staff; technical assistance will be made available to CBOs to assist in subproject design and implementation. Semi-annual technical audits will also monitor subproject quality and make recommendations for improvements as needed. Training programs will also be offered to develop community capacity to prepare, implement, operate, and maintain subprojects, and acquaint them with existing environmental regulations, as detailed in the Environmental Management Plan.

Social Analysis

Explanation:

Involuntary Resettlement: The planned activities under the proposed AF are not expected to result in land acquisition or involuntary resettlement. Community subprojects under Component 1 will screen out activities that would require resettlement or that would result in restriction of access to natural resources in protected areas; and for Component 3 only housing repairs and small infrastructure upgrade are planned. However, to allow flexibility to respond to emergencies or changing priorities, OP 4.12 will continue to be triggered. In the event that minor involuntary resettlement would be required, a Resettlement Action Plan (RAP) will be prepared in accordance with the OP 4.12 along the same principles of the original Resettlement Policy Framework, and the lessons learnt from the RAPs that were developed and implemented in the original project. The Involuntary Resettlement Framework has been updated to include the new project areas and re-disclosed in country and in the Bank’s website. A formal ex-post evaluation of those RAPs will be carried out by June 30, 2014. Consultation and community participation: Prioritization and selection of subproject proposals, will be carried out via a participatory and demand-driven approach organized through COPRODEPs, subject to the use of ‘negative’ and ‘indicative positive’ lists of subprojects to better inform the decision-making process of communities. Given that the communities of Dondon and Milot are situated in a critical Natural Habitat and a World Heritage Site, selection of subprojects will be subject to prior authorization by the Institut de Sauvegarde du Patrimoine National (ISPAN). Social Analysis: A separate, additional Social Assessment will not be undertaken for the proposed AF, given the experience of BMPAD in the areas of project implementation. Both the Cultural Heritage Preservation and Tourism Sector Support Project (P144614) (for Milot and Dondon) and the Center and Artibonite Regional Development Project (P133352) (for Mirebalais and Hinche) are undertaking Social Assessments in these areas. The findings of these assessments will be shared with BMPAD. Gender: In order to ensuring gender mainstreaming in social protection, health and agriculture & rural development operations, and to increase the number of infrastructure projects that are gender-informed, two new indicators to track the gender content of the Proposed AF have been added with baseline and targets for monitoring and evaluation arrangements. To better inform implementation, an evaluation of the first CDD activities under the parent project to be launched by July 2014 is expected to yield key information on the experience of mainstreaming gender in the project, both in the execution entities (CBOs; COPRODEPs, implementing NGOs, and BMPAD) and throughout of cycle of the community

18

subprojects. One of the key concerns is to ensure that gender-inclusion and participation are effective and not just nominal. Beyond the representation of women, it is important to ensure that other groups of population with less ‘voice’ are also included in the consultation and the implementation of the subprojects (ex. youth, elders, young mothers, disabled etc.). This also means taking into account socio-economic and cultural barriers to the systematic participation of men and women to the subproject. The evaluation will be closely followed by World Bank gender specialist based in Port-au-Prince. The specialist will provide support to ensure that the consultation conducted are inclusive and representative of all stakeholders in order to provide the most comprehensive assessment of what has worked so far in including and promoting gender outcomes, and what needs to be remedied or improved.

Environmental Analysis

Explanation:

From an environmental and social standpoint, PRODEPUR as originally conceptualized is a Category B project, with three applicable operational safeguard policies: OP 4.01 (Environmental Assessment), OP 4.11 (Physical Cultural Resources) and OP 4.12 (Involuntary Resettlement). That is, the project’s potential impacts, as expected, were minor, site-specific and manageable to an accepted level. As the proposed activities would be of the same type as those currently under the project, the category under the proposed AF would remain unchanged. Physical Cultural Resources: OP 4.11 was triggered under the Parent Project and is also triggered for the proposed activities financed by the AF. However, given the historic and cultural significance of the new areas, key elements of the Cultural Physical Resources Framework of the Cultural Heritage Project will be included in the Operations Manual to ensure that procedures take into account the cultural importance of the sites. Under the proposed activities , the project would intervene in the northern and central part of the country in the following cities: Dondon, Milot, Hinche and Mirebalais. Dondon and Milot, in particular, are situated within and on the perimeter of the National History Park (Parc National Historique), a UNESCO World Heritage Site. The park is of global importance, both from biodiversity and physical cultural resources points of view, and is recognized as a critical Natural Habitat. On that premise and to remain consistent the Bank-financed Cultural Heritage Preservation and Tourism Sector Support Project (P144614) intervening in the same areas, two new safeguard policies, OP 4.04 (Natural Habitats) and OP 4.36 (Forests) are triggered. The objective is to exercise due diligence and account for potential impacts, asappropriate, during implementation. Safeguard Instruments Prepared To ensure consistency between the specific proposed AF investments and new areas of intervention, the existing Environmental and Social Management Framework (ESMF) has been revised and re-disclosed in country and in the Bank’s website on April 18, 2014. The ESMF provides guidance and measures with clear roles and responsibilities, along with capacity strengthening measures for effective implementation and monitoring. It also provides cost outlays and a timetable for preventing and mitigating these potential impacts. In particular, the ESMF provides steps for screening all subprojects, outlines procedures for preparing, reviewing, clearing, disclosing and monitoring subproject-specific Environmental and Social Management Plans (ESMPs). As a condition of investment, it has been agreed that no civil works will commence, without proper compliance with the above procedures. In addition, the Physical Cultural Heritage Management Plan (CGPCP), developed during the preparation of the Cultural Heritage Preservation and Tourism Sector Development Support Project in Northern Haiti, which was re-disclosed on June 5, 2014, both nationally and at Bank’s website , in the context of the

19

safeguard documents required for the proposed AF. This is predicated on the fact that the two projects share the same areas of intervention. The objective of re-disclosing is to provide appropriate guidance on issues and mitigation measures related to physical and cultural resources affected during implementation of the proposed AF. Safeguards Monitoring and Supervision As part of subprojects’ screening, selection and compliance monitoring and capacity strengthening program relating thereto, for effective implementation of the proposed AF’s safeguards, BMPAD and the MDODs are equipped enough to carry out this function. Nonetheless, in order to improve the safeguards performance in this operation, following lessons learned from the implementation of the parent project and the first additional finance, new arrangements have been made that include: (a) the creation of a separate budget line for safeguards monitoring and evaluation in project cost outlays; (b) the systematic and timely safeguards compliance monitoring reporting by the MDODs and (c) quarterly BMPAD’s safeguards reporting to management. Supervision of the proposed AF will continue to include an environmental specialist and a social specialist.

Risk

Explanation:

Haiti’s continued economic and political volatility, as well as its vulnerability to natural disasters, continue to pose significant risks to project implementation. However, the mitigation measures developed under the Parent Project to address these risks have proven effective, particularly regarding risks such as political interference, misappropriation, or misuse of community resources. The establishment of strict implementation rules, and transparent, inclusive and participatory processes for community subproject selection and financing, have significantly reduced the potential for discretional allocations, allowing all eligible beneficiaries – including women and youth – to participate effectively. Furthermore, the emphasis placed on capacity building, systematic training, and technical assistance has enabled community organizations and residents’ groups at the grassroots level to efficiently implement and manage subprojects. Finally, the project implementing agency, BMPAD has accumulated valuable experience in project implementation, and is now equipped to handle risks as they arise and develop appropriate mitigation measures. Additional technical assistance will be provide to BMPAD under the proposed AF. As such, it is expected that risks would be well managed under the proposed AF, and the overall project risks are therefore considered to be Moderate. Further detailed information can be found in Annex 2: Operational Risk Assessment Framework (ORAF).

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Annex 1: Revised Results Framework and Monitoring Indicators

Haiti - Urban Community Driven Development Project - AF (P149116)

Project Development Objectives

Original Project Development Objective - Parent:

To improve access to (and satisfaction with): a) basic and social infrastructure and services; and b) income generating opportunities for residents of targeted disadvantaged urban areas. This objective will be achieved through a participatory process in which community-based organizations propose, select, implement, and maintain subprojects.

Current Project Development Objective - Parent:

To improve access to, and satisfaction with: (i) basic and social infrastructure and services, including housing repair, reconstruction and community infrastructure improvements needed as a result of the emergency; and (ii) income-generating opportunities for residents of targeted disadvantaged urban areas.

Proposed Project Development Objective - Additional Financing (AF):

To improve access to, and satisfaction with: (i) basic and social infrastructure and services, including housing repair, reconstruction and community infrastructure improvements needed as a result of the Emergency; and (ii) income-generating opportunities for residents of selected disadvantaged urban areas.

Results

Core sector indicators are considered: Yes Results reporting level: Project Level

Project Development Objective Indicators

Status Indicator Name Core Unit of Measure

Baseline Actual(Current) End Target

Revised Increased access to water in disadvantaged urban areas that selected such subprojects (i.e., water kiosks, standpipes, community cisterns, rainwater capture, etc.).

Percentage Value 85.51% 92.63% 95%

Date 15-Jul-2010 21-Mar-2014 30-Jun-2016

Comment As measured from the PRODEPUR baseline survey.

Incremental increase in access to services.

Change in end target date.

Revised Increased access to sanitation in disadvantaged urban areas that selected such subprojects (i.e., garbage collection, solid waste disposal, recycling, composting, sanitary blocks, etc.).

Percentage Value 13.47% 23.47% 29%

Date 15-Jul-2010 21-Mar-2014 30-Jun-2016



Incremental increase in access to services. Change in end target date.

Revised Increased access to rehabilitated Percentage Value 27.85% 44% 53%

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street and drainage infrastructure in disadvantaged urban areas that selected such subprojects (i.e., cleared and rehabilitated drainage canals, ditches, etc.)

Date 15-Jul-2010 21-Mar-2014 30-Jun-2016




Revised Increased access to social infrastructure and services in disadvantaged urban areas that selected such subprojects (daycare centers, primary schools, secondary schools, health clinics, job training, etc.)

Percentage Value 24.51% 41% 51%

Date 15-Jul-2010 21-Mar-2014 30-Jun-2016




Revised Number of productive/income generating subprojects fully operational.

Number Value 0 493 650

Date 03-Jun-2008 21-Mar-2014 30-Jun-2016

Comment No PRODEPUR subprojects underway at outset of project.

Effort to streamline the result indicator in line with counterpart capacity. Target has been revised to be a number rather than a percentage, for consistency with indicator wording. Sub-indicator added to capture percentage of subprojects self-sufficient

New subprojects financed. Change in end target date.

New Percentage of productive/income generating subprojects that are self-sustaining six months after being fully operational.

Percentage Value 0.00 15 80.00

Sub Type

Supplemental

Revised Percent of beneficiaries for whom the majority of expected subproject results, as defined by beneficiaries at the start of the project, were achieved (as per

Percentage Value 0 0 85%

Date 03-Jun-2008 21-Mar-2014 30-Jun-2016

Comment No PRODEPUR beneficiaries at

To be measured at end of project by a

New activities will result in additional

22

results from community evaluation forms)

outset of project. beneficiary survey or community evaluation forms.

beneficiaries. Change in end target date.

Revised Residents that have returned to neighborhoods upon completion of housing reconstruction and repair works or receiving a rental grant

Number Value 0.00 2000.00 5480.00

Date 26-Oct-2010 21-Mar-2014 30-Jun-2016

Comment Target revisedChange in end target date.

Intermediate Results Indicators

Status Indicator Name Core Unit of Measure

Baseline Actual(Current) End Target

Revised Volume of construction debris cleared in Project neighborhoods

Cubic Meter(m3)

Value 0.00 13347.00 41747.00

Date 21-Feb-2011 30-Sep-2013 30-Jun-2015

Comment BMPAD report end of September 2013.

Additional activities will result in additional debris cleared. Change in end target date.

Revised Number of corridors repaired

Number Value 0.00 31.00 108.00

Date 21-Feb-2011 30-Sep-2013 30-Jun-2016

Comment BMPAD report end of September 2013.

Additional activities will result in additional corridors repaired. Change in end target date.

Revised Number of eligible CBOs joining COPRODEPs.

Number Value 0.00 1119 1173

Date 03-Jun-2008 21-Mar-2014 30-Jun-2016

Comment 1119 CBO over a total of 1466 eligible ones joined the COPRODEPs established, a total of


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76% of total CBOs.

Revised Percent of subprojects successfully implemented, operated, and maintained (as per technical audits)

Percentage Value 0 70% 70%

Date 03-Jun-2008 21-Mar-2014 30-Jun-2016

Comment Target reduced to 70% from 95% to be more realistic in light of current project implementation, and the results of the first technical audit.


Revised Percent of municipal governments successfully proposing and implementing subprojects in coordination with CBOs


Date 03-Jun-2008 21-Mar-2014 30-Jun-2016

Comment 6 out of 6. Target met. Change in end target date.

Revised Percent of subprojects completed in a timely manner


Date 03-Jun-2008 21-Mar-2014 30-Jun-2016

Comment Timely manner is equivalent to less than 6 months. The revision is for the measurement methodology.


Revised Roads rehabilitated, Non-rural

Kilometers Value 0.00 7.44 16.00

Date 03-Jun-2008 21-Mar-2014 30-Jun-2016

Comment Change in end target date.

Revised Number of people in urban areas provided with access to Improved Water Sources under the project

Number Value 0.00 47150.00 63650.00

Date 03-Jun-2008 21-Mar-2014 30-Jun-2016

Comment Note: indicator's scope is currently only CDD portion of the Project (does not include first Additional Financing

The Additional Financing will finance an additional 16500 beneficiaries, an increase of 35%

24

beneficiaries, calculated separately).

from the previous target. Change in end target date.

Revised Cumulative number of housing repair and reconstruction works completed and rental grants financed

Number Value 0 1153 1384

Date 21-Feb-2011 21-Mar-2014 30-Jun-2016

Comment BMPAD Report September 30, 2013.

End target increased by 231 as a result of the Additional Financing for Component 3, and repair/retrofit/reconstruction of additional houses in Martissant. Change in end target date.

Revised Health facilities constructed, renovated, and/or equipped (number)

Number Value 0.00 3.00 5.00

Date 03-Jun-2008 21-Mar-2014 30-Jun-2016

Comment Based on Mid Term Review, baseline set to 3 and Target was met.

Additional financing to finance additional 2 health facilities, bringing end target to 5. Change in end target date.

New Percent of women holding membership in COPRODEP’s executive committee.

Percentage Value 24.00 24.00 30.00

Date 21-Mar-2014 21-Mar-2014 30-Jun-2016

Comment

New Percent of prioritized projects submitted by women’s CBOs.

Percentage Value 13.00 13.00 15.00

Date 21-Mar-2014 21-Mar-2014 30-Jun-2016

Comment

.

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Table 1: Description of the Indicators of the Results Framework and Monitoring

Project Development Objective Indicator Name Description / Details on the Data Source and Methodology

1. Increased access to water in disadvantaged urban areas that selected such subprojects (i.e., water kiosks, standpipes, community cisterns, rainwater capture, etc.).

This indicator measures the proportion of people in the selected disadvantaged urban areas with access to an improved water source.

2. Increased access to sanitation in disadvantaged urban areas that selected such subprojects (i.e., garbage collection, solid waste disposal, recycling, composting, sanitary blocks, etc.).

This indicator measures the proportion of people in the selected disadvantaged urban areas with access to improved sanitation.

3. Increased access to rehabilitated street and drainage infrastructure in disadvantaged urban areas that selected such subprojects (i.e., cleared and rehabilitated drainage canals, ditches, etc.)

This indicator measures the proportion of people in the selected disadvantaged urban areas with access to improved transport mobility.

4. Increased access to social infrastructure and services in disadvantaged urban areas that selected such subprojects (daycare centers, primary schools, secondary schools, health clinics, job training, etc.)

This indicator measures the proportion of people in the selected disadvantaged urban areas with access to improved social infrastructures.

5. Number of productive/income generating subprojects fully operational.

This indicator measures the impact the project’s capacity to mobilize beneficiaries in designing and sustaining income generating opportunities for residents of targeted disadvantaged urban areas and the degree of satisfaction of communities accessing to the services of the income generating subprojects.

5. a. Percentage of productive/income generating subprojects that are self-sustaining six months after being fully operational.

This indicator measures the impact the project’s capacity to mobilize beneficiaries in designing and sustaining income generating opportunities for residents of targeted disadvantaged urban areas and the degree of satisfaction of communities accessing to the services of the income generating subprojects

6. Percent of beneficiaries for whom the majority of expected subproject results, as defined by beneficiaries at the start of the project, were achieved (as per results from community evaluation forms)

This indicator intends to measure the impact of project design features through a survey at end of project.

7. Residents that have returned to neighborhoods upon completion of housing reconstruction and repair works or receiving a rental grant

This indicator measures the actual number of residents that return to neighborhood upon completion of repair and/or reconstruction of houses, or receiving a housing rental grant.

Intermediate Results Indicator Name Description / Details on the Data Source and Methodology 1. Volume of construction debris cleared in Project neighborhoods

This indicator captures the capacity of neighborhood residents, CBOs, and Implementing NGOs collaboratively work in the Project neighborhoods to clear the debris from collapsed houses to allow repair and/or reconstruction activities to start.

2. Number of corridors repaired This indicator captures the total number of corridors repaired in under the project.

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3. Number of eligible CBOs joining COPRODEPs. This indicator measures project success in mobilizing community groups to participate in the different stages of the subproject cycle in targeted disadvantaged urban areas.

4. Percent of subprojects successfully implemented, operated, and maintained (as per technical audits)

This indicator captures the capacity of CBOs and COPRODEPs to identify, prioritize, implement, operate, and maintain high-quality subprojects to improve basic infrastructure or to provide income-generating opportunities in a timely manner (as determined by the technical and financial audits).

5. Percent of municipal governments successfully proposing and implementing subprojects in coordination with CBOs

This indicator measures the capacity of the municipal governments to participate in PRODEPUR to propose and implement subprojects to improve public goods jointly with CBOs.

6. Percent of subprojects completed in a timely manner

This indicator measures how project’s components are effectively coordinated and monitored.

7. Roads rehabilitated, Non-rural

This indicator measures the Kilometers of all non-rural roads reopened to motorized traffic, rehabilitated, or upgraded under the project. Non-rural roads are roads functionally classified in various countries as Trunk or Primary, Secondary or Link roads, or sometimes Tertiary roads. Typically, non-rural roads connect urban centers/towns/settlements of more than 5,000 inhabitants to each other or to higher classes of road, market towns and urban centers. Urban roads are included in non-rural roads.

8. Number of people in urban areas provided with access to Improved Water Sources under the project

This indicator measures the actual number of people in urban areas who benefited from improved water supply services that have been constructed under the project. The scope of the indicator includes only the CDD portion of the PRODEPUR. Guidance on "improved water sources": Improved water sources include piped household connections (house or yard connections), public standpipe, boreholes, protected dug well, protected spring and rainwater collection. Hence, "Improved Water Sources" do not include, inter alia, water provided through tanker truck, or vendor, unprotected well, unprotected spring, surface water (river, pond, dam, lake, stream, irrigation channel), or bottled water. The definition of what is considered an ‘improved water source' follows the UNICEF-WHO Joint Monitoring Program definition. Note that "Improved Water Sources" does not refer to the question of new versus rehabilitated water sources, but is the standard definition used to track progress on the Millennium Development Goals. Guidance on people with access: The data on the number of people provided with access can be estimated by TTLs by multiplying i) the actual number of piped connections with an estimate of the number of people per household connection; and/or ii) the actual number of community water points with an estimate of the number of people per community water point. The assumptions made regarding number of people per connection made should be carefully documented in the ‘comments' section of the indicator when data is entered in the ISR. Guidance on urban classification: The classification should follow the official definition used in the country.

9. Cumulative number of housing repair and reconstruction works financed through grants and completed

This indicator measures the impact of Housing repair and/or reconstruction activities to allow former residents to return to neighborhoods.

10. Health facilities constructed, renovated, and/or equipped (number)

This indicator measures the cumulative number of health facilities constructed, renovated and/or equipped through a Bank-financed project.

11. Percent of women holding membership in COPRODEP’s executive committee.

This indicator measures the capacity of CBOs and COPRODEPs to be inclusive in terms of women’s participation and leadership.

12. Percent of prioritized projects submitted by women’s CBOs.

This indicator measures the share of women through leadership and inclusiveness in terms of prioritizing their needs and designing self-tailored subprojects..

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Annex 2

Operational Risk Assessment Framework (ORAF)

Haiti: Urban Community Driven Development Project

Risks

1. Project Stakeholder Risks

1.1 Stakeholder Risk Rating Moderate

Risk Description: Risk Management:

Given the current difficult conditions, long delays may lead to social unrest and violence, become unwelcoming and potentially unsafe for project activities, and may lead to disorderly reoccupation of unsafe zones and rebuilding of unsafe housing by the communities. For CDD: -Politicization of project councils. -Elite/gang capture of Project Development Councils; project councils co-opted by local government. For Housing: -Lack of coordination or diverging views among the donors, between the donors and the government, and amongst beneficiaries could undermine implementation of the Housing Repair and Reconstruction component and beget donor shopping. -Lack of services in the neighborhoods that are provided in the camps (food, water, sanitation, electricity, health care, etc.) may lead some households to stay in the camp rather than

PRODEPUR responded quickly to the post-earthquake, and ongoing, needs in the relevant areas, thereby solidifying the local support for the program and maintaining good working relationships with key neighborhood stakeholders. Communication campaigns, construction training, and social control through community structure to prevent unsafe reoccupation and social unrest; neighborhood specific group of facilitators will play an important role. For CDD: -Membership of the COPRODEP is at least 80% comprised of representatives from CBOs. -Ensure membership is at least 80% comprised of representatives of legitimate CBOs (with the remaining 20% maximum allocated to representatives of municipal government, civil society, etc.); transparent CDD process in place at all times; subprojects will be co-managed with Service Provider; close project supervision. -Strengthened role for participation and transparency of the COPRODEPs as they become more involved with monitoring and supervision through more solid linkage with the municipalities as they become CADECs, to foster local governance in harmony with the local development framework coordinated by the municipality. For Housing: -The Bank participates in the UN Shelter Cluster to coordinate housing packages with donors, and has built on this coordination to produce a draft housing policy for the country with other donors and the Government. Broad agreement on this approach is emerging among the major donors active in the permanent shelter field and the GOH. Neighborhood -level coordination mechanisms are being established – also diminishing potential for ‘donor-shopping ‘ and donor duplication. -Project is accelerating the implementation of ongoing CDD program in target communities, will invest substantially in improving neighborhood basic services, and is coordinating with other donors to encourage a gradual transfer of services from the camps into the neighborhoods.

Resp: Both

Stage: Implementation

Recurrent: Due Date: Frequency: Status: In Progress

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return to rehabilitated/new housing.

2. Implementing Agency (IA) Risks (including Fiduciary Risks)

2.1 Capacity Rating Moderate


-BMPAD/MDODs are already implementing PRODEP, PRODEPUR and cash-for-work programs. Adding to its load may overwhelm its capacity to effectively implement the additional activities. - Both BMPAD and MDODs have limited safeguards implementation and supervision capacity -While BMPAD’s procurement team has been equipped to execute procurement according to Bank Guidelines, the overall public procurement system in Haiti remains relatively weak. There is still a lack of skilled personnel within MDODs selected to implement subprojects with knowledge of international norms, limited planning and follow-up capacity, and insufficient use of standard documents and procedures.

- BMPAD and MDODs will add to its staff and work closely with the various partners to install first-responders in the neighborhood Community Reconstruction Centers (CRCs) and COPRODEPs which will assist in the implementation and supervision of project activities. - Additional Social and environmental processes are embedded in the current frameworks and Operational Manual. Additional training and staff for both BMPAD and MDODs will ensure adequate capacity. - Procurement activities will be carried out by BMPAD, which is already satisfactorily managing procurement under PRODEP and PRODEPUR. BMPAD will ensure extensive oversight of MDODs and subproject procurement processes. Bank supervision in this area will be intensive. - All FM, procurement and disbursement processes remain as in the parent project and these are currently working very well.

Resp: Client


Recurrent:

Due Date: Frequency: Status: In Progress

2.2 Governance Rating Moderate


-The COPRODEPs are part of the project structure (ad hoc creation of PRODEP) and are not part of the legal set-up for decentralization. Therefore, these may be seen as not adequately representing the community. Additionally they may not link up with decentralized governments (communes and communal sections) and, as such, may prevent them fromplaying an effective role in in the decentralized model. -Standards/systems /practices of accountability between BMPAD and MDODs are weak

-PRODEPUR’s participatory approach fosters transparency and accountability. The COPRODEPs are deliberately designed to represent the community, being majority elected bodies that comprise members of neighborhood CBOs who operate on behalf of the community, and are supplemented by members of the municipality. In order to circumvent COPRODEP’s lack of legal existence, PRODEP has created the CADECs which are legally established structures designed to complement and ultimately substitute the COPRODEPs in the decentralized model. The CADECs will work with the communes in assisting subproject management and M&E. -BMPAD has strict accountability rules in place vis-a-vis the MDODs, including the requirement that MDODs be subjected to regular financial and technical audits. When problems have been encountered in the past, they have always been resolved with reference to these rules. The additional activities will use these rules, and increase BMPAD’s capacity to implement them through the addition of specialized personnel. -Strong technical and financial oversight will be established, with clear rules of engagement that revolve around

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community peer-pressure. Experience from the ongoing CDD projects suggests that there is little leakage of funds and that these community mechanisms work very well.

Resp: Client



Resp: Client



3. Project Risks

3.1 Design Rating Moderate


-The project’s participatory approach fails to effectively return people to their dwellings in a timely manner. -The project’s community approach is unable to effectively monitor for construction quality. - Phase-out strategy not clear at end of project implementation.

-The project builds on existing community social infrastructure that has successfully implemented subprojects in a timely manner and focuses on repair to expedite returns. -The Community Reconstruction Centers (CRCs) will house roving teams of engineers who will deliver intensive training and inspect construction milestones before further funds are released. The tranche system effectively allows the project leverage over quality of construction. - The study on local development envisioned under component 2 would complement existing GoH’s strategic documents related to the long-term decentralization framework. It would lay the groundwork for the next generation of CDD projects and service delivery through local government.

Resp: Client



3.2 Social and Environmental Rating Moderate


-BMPAD has limited social and environment staff that already have to implement and monitor safeguards actions across multiple projects, neighborhoods and subprojects -Due to the increased demand for building supplies, Haiti’s stressed forest and freshwater resources may be further degraded. -Reconstruction may lead to indiscriminate dumping of debris in neighborhoods, causing blockages to water canals which in turn can cause localized flooding in the rainy season, and other health risks. - Involuntary resettlement.

-The project ESMF includes a suite of capacity building activities, including training-of-trainers, to foster safeguards capacity and complement BMPAD’s capacity with trained specialists among the MDODs. BMPAD will hire additional safeguards staff to supplement their existing capacity. -The project team will work with ongoing initiatives to ensure building materials are procured from existing and reputable firms. -The project prepared a debris management plan to address indiscriminate dumping and other risks associated with debris removal that will be carefully implemented and supervised. -AF funded activities are not expected to require involuntary resettlement and no subprojects requiring acquisition of land are eligible for support. However, a Resettlement Policy Framework that provides principles and principals and guidance on involuntary resettlement and the development of Resettlement Action Plans in line with Bank operational procedures, Haitian laws, and the operating context has been prepared as a precaution. Overall, project remains a category B project.

Resp: Stage: Recurrent: Due Date: Frequency: Status:

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Client Implementation In Progress

3.3 Program and Donor Rating Moderate


-Duplication of activities with donors: The project may conflict with other donors-financed activities involved in local governance (for example the North and North East Programof Intervention-PINNE, and the Southern Communes Intervention Program, PISUD (through MINUSTAH, USAID Lokal Plus, French Embassy)

Both of these capacity building programs are implemented by the Ministry of Interior (MICT), which is taking the lead under the proposed AF activities , to undertake a study on local development (under component 2), thus dialogue and collaboration with donors will be maintained through the various working groups participating in local development in Haiti.

Resp: Both



3.4 Delivery Monitoring and Sustainability Rating Moderate


-Due to lack of training of staff, adequate monitoring and evaluation of the Project could be weak, and problems that led to the downgrading of the Implementation Progress rating persist and slower the implementation of the subprojects. -Monitoring, especially impact evaluations, requires reasonably reliable data, of which there is very little available in Haiti.

-Ongoing strengthening of BMPAD’s capacity will be maintained to sustain the recently updated and functioning MIS and the data collection and report generation from all implementing NGOs. -Frequent evaluation consultations will be done during the life of project starting with the evaluation of the CDD activities completed under the Parent Project immediately after Board approval. These consultations will produce a preliminary set of reliable data, which will be used as a baseline to measure the results of the AF financed activities.

Resp: Client


Recurrent:

Due Date: Frequency: Status: In Progress

5. Overall Risk

Overall Implementation Risk:

Moderate

Risk Description:

The overall implementation risk rating for the proposed Project is Moderate. The main risk to the Project results from the volatile country political environment, the low institutional and technical capacity of local government agencies. The Project attempts to mitigate this risk by: i) using the implementing agency, BMPAD accumulated experience in project implementation from the Parent project by i) establishing strict implementation rules, and transparent, inclusive and participatory processes of

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community subproject selection and financing; ii) emphasizing on capacity building, systematic training, and technical assistance towards community organizations and residents’ groups at the grassroots level to efficiently implement and manage subprojects.

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Annex 3: Detailed Description of Modified or New Project Activities

Background

1. Project Objectives and Description. The PDO of the proposed AF would be slightly revised to reflect a slight discrepancy in previous documentation. The Project Development Objective (PDO), as modified under the first AF, and slightly corrected under this AF is to improve access to, and satisfaction with: (i) basic and social infrastructure and services, including housing repair, reconstruction and community infrastructure improvement needed as a result of the Emergency; and (ii) income-generating opportunities for residents of selected disadvantaged urban areas. 2. Scaling up of project activities. The proposed AF would finance the scaling up of activities and investments of the same type and similar intervention areas to the Parent Project, with an extension of the geographic scope of subproject activities. The majority of additional funds would be used to finance additional subprojects and cash grants under Component 1, as well as the scaling-up of support activities under Components 2 and 3, such as further strengthening BMPAD’s capacity and preparation of analytical work to fine-tune the participatory process underpinning the PRODEPUR’s implementation. 3. Refocus of project activities. The proposed AF would gradually abandon the emergency focus adopted following the 2010 earthquake and focus on the longer-term development challenge of new housing rather than emergency reconstruction. Consistent with GoH’s Housing Unit (Unité de Construction de Logements et de Bâtiments Publics – UCLBP) guidelines, the focus of the Component 3 - Housing Repair and Reconstruction would gradually shift from the recent post-disaster housing reconstruction to “self-construction” or “assisted-construction” and rebuilding, as a means to better respond to house-owner’s needs, developing greater ownership, and hence promoting long-term sustainable habitat. Project Components

Overall, the project will have the following components: Component 1: Urban Community Subproject Preparation and Implementation (US$5.90 million)

4. This component will consist of (i) The provision of grants to Urban Beneficiary Communities (Community Based Organizations-CBOs), including related technical assistance for the identification, appraisal, selection, preparation and implementation of Urban Community Subprojects in small-scale socio-economic infrastructure and productive or income generating activities, to be carried out in the selected Disadvantaged Urban Areas described below; (ii) the carrying out of an IEC campaign to inform about Project objectives, procedures and expected benefits for targeted residents of the Project areas; and (iii) the provision of training to COPRODEPs/CADEC, to facilitate their establishment and operation, including monitoring, supervision and provision of technical assistance to Urban Beneficiary Communities. Implementation of these activities are detailed in the following subcomponents. This component

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would finance, through the provision of grants to Urban Beneficiary Communities (Community Based Organizations-CBOs), about 160 additional subprojects (Socioeconomic and Infrastructure Subprojects) in the four municipalities covered by the Parent Project, namely Cité Soleil and Port-au-Prince/Martissant (Metropolitan Area of Port-au-Prince), St. Marc (Artibonite Department), and Cap Haitian (Northern Department). It would also finance subprojects in four newly covered municipalities: Hinche and Mirebalais in the Center Department, and Dondon and Milot in the North Department. 5. Subproject selection would be demand-driven and would follow procedures detailed in a project Operations Manual (OM). Subproject funds would be managed (Support to the Subproject Cycle) jointly by the MDODs and the CBOs, which together would be responsible for subproject financial management and expense reporting (in the form of Statements of Expenditure) following subproject completion. Component 2: Capacity-Building, Institutional Strengthening (US$0.25 million)

6. This component will consist of providing and organizing various training, workshops and technical assistance to various project’s stakeholders on specific topics relevant to the project, such as basic management, administration, accounting and financial management, environmental and social safeguards, local and participatory governance, public administration, social accountability, transparency and reporting, crime and domestic violence-reduction and prevention. The target audience include COPRODEPs/CADEC and municipal government agents and staff, CBOs, and MDODs. Implementation of these activities is detailed as follows. 7. Based on lessons learned under the Parent Project, the proposed AF would incorporate additional capacity-building activities, all of which are tailored to the context of disadvantaged urban areas. These include: (i) training on local and participatory governance, public administration, social accountability, transparency, and reporting; (ii) training on donor coordination facilitation at the disadvantaged urban area level, especially in disadvantaged urban areas where many donors are active (that is, donor coordination could go hand in hand with a participatory planning process in the community); and (iii) training on participatory processes for geographic and administrative demarcation of the disadvantaged urban areas as needed.

8. This component would also finance key studies and analyses to pave the way for the design and implementation of future CDD projects. One thematic area for such studies and analyses would be Haiti’s local development. Component 3: Housing Repair and Development (US$0.7 million)

9. This component will carry out a program of activities in the project’s areas, which consists of debris removal work, the provision of Cash Grants for housing repair, the improvement of community infrastructure such as roads, walkways, drainage ditches and channels, solid waste management, water supply systems, sanitation facilities and related equipment. This component will also consist of designing, providing and organizing various training, workshops and technical assistance to various project’s stakeholders at the community level, on specific topics relevant to the project, and may include activities such as (i) the design and implementation of a community-based mapping exercise in the Selected Area; (ii) the

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establishment and implementation of conflict-resolution mechanisms related to Project activities; (iii) the development of neighborhood-level urban plans and risk maps; (iv) the supervision of construction activities; (v) the provision of training with respect to building techniques and applicable rules; (vi) the establishment and operation of community reconstruction centers; and (vii) the provision of technical assistance for the preparation of medium-and long-term urban development and housing strategies, and associated policy and administrative measures. Component 4: Project Administration, Supervision, Monitoring and Evaluation (US$0.65 million)

10. This component would finance incremental costs associated with project implementation, administration, supervision, monitoring and evaluation by the Project Coordination Unit (PCU), housed within the, BMPAD which operates under the oversight of the Ministry of Economy and Finance. Items to be financed would include the hiring of additional staff, consulting services, office equipment, and other project-related miscellaneous expenditure. Targeting and Level of funding per Disadvantaged Urban Area 11. As requested by the GoH, the project would intervene in the Government’s “Priority Zones” of targeted municipalities. In addition, consistent with the project’s overarching objective of poverty reduction, the selected project areas would also conform to standard eligibility criteria: (i) poverty level; (ii) population density; and (iii) current and past levels of violence. Additional preliminary socioeconomic studies and field visits confirm that the selected disadvantaged urban areas all qualify under the combined poverty/ density/ violence criteria. 12. Table 2 below provides an overview of total number and cost of subprojects per department:

Table 2: Cost of Subprojects and Housing Support Activities (US$)

Municipal

Subprojects Community Subprojects

Housing Component

Municipal Subprojects

total

Community Subprojects

Total

Housing component

North 9 48 $ 675,000 $ 960,000

Center 9 51 $ 675,000 $ 1,020,000

West 9 34 $ 675,000 $ 680,000

Martissant (Housing)

1 $700,000

Sub total Housing $700,000

Sub total Subprojects

$2,025,000 $2,660,000

Total 27 133 $2,025,000 $2,660,000 $700,000

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Total Project Costs

13. Table 3 below provides an overview of total costs per project component:

Table 3: Summary of Project Costs per Component

Project Components Costs (US$ million)

% of total costs

Component 1: Urban Community Subproject Preparation and Implementation

5.90 78

Socioeconomic and Infrastructure Subprojects 4.69 62

Support to the Subproject Cycle 1.21 16

Component 2: Capacity-Building, Institutional Strengthening 0.25 3 Component 3: Housing Repair and Development 0.7 10 Cash Grants for Housing Repair and Development. 0.4 6

Community Infrastructure Repair and Improvement. 0.3 4 Advisory Services Component 4: Project Administration, Supervision, Monitoring and Evaluation

0.65 9

Total 7.50 100.0

To MonteChristiNORD - OUEST

N O R D

NORD - EST

A R T I B O N I T E

C E N T R E

S U D - E S TS U D

G R A N D E -A N S E

Gros-MorneLimbé

Ennery

Grande Rivière du Nord

Saint-Raphaël

Verrettes

Croix desBouquets

Petit-Goâve

Belle-Anse Thiotte

Côtes-de-fer

Vieux Bourg d'Aquin

Les Anglais Camp-Perrin

Miragoâne

FerrierTrou-du-Nord

Saint Michelde l'Attalaye

Maïssade

Les Trois

Artibonite

Guayampuo

Jacmel

Fort-LibertéMILOT

DONDON

MIREBALAIS

Palmiste

Môle St.-Nicolas

Baie de Henne

Gros-Morne Limbé

Ennery

Grande Rivière du Nord

Saint- Raphaël

Verrettes

Croix des Bouquets

Marigot

Petit-Goâve

Belle- Anse Thiotte

Côtes-de-fer

Vieux Bourg d'Aquin

Roseaux

Anse d'Hainault

Les Anglais

Port-Salut

Camp-Perrin

Anse-à-Galets

La Cayenne

Ferrier Trou-du-Nord

Saint Michel de l'Attalaye

Maïssade

Pointe-à-Raquette

Jacmel

Jeremie

Les Cayes

Fort-Liberté

Port-de-Paix

Miragoâne

NORD - OUEST

N O R D

NORD - EST

A R T I B O N I T E

C E N T R E

O U E S T

S U D - E S TS U D

G R A N D E -A N S E

N I P P E S

DOMINICAN

REPUBLIC

GONAÏVES - Raboteau/Jubilé-Blanc - Descahos/Trou-Sable - KaSoley

PORT-AU-PRINCE - Bel-Air/Solino-Tichérie - Martissant/Grand-Ravine/ Cité-l’Eternel/Cité-Plus/Cité-de-Dieu

PORT-AU-PRINCE - Bel-Air/Solino-Tichérie - Martissant/Grand-Ravine/ Cité-l’Eternel/Cité-Plus/Cité-de-Dieu

CITÉ-SOLEIL - Cité-Soleil (urban section)CITÉ-SOLEIL - Cité-Soleil (urban section)

CAP-HAÏTIEN - Lafossette/NanBanann/Shada - Bas-Ravine/Bande-du-Nord/ Rivoli/Fort-Bourgeois

CAP-HAÏTIEN - Lafossette/NanBanann/Shada - Bas-Ravine/Bande-du-Nord/ Rivoli/Fort-Bourgeois

GONAÏVES - Raboteau/Jubilé-Blanc - Descahos/Trou-Sable - KaSoley

SAINT-MARC - Portail-Montrouis/Frécynau - Portail-Guêpes/Blockhaus/LaScierie

SAINT-MARC - Portail-Montrouis/Frécynau - Portail-Guêpes/Blockhaus/LaScierie

MILOT

HINCHE

MIREBALAIS

DONDON

Les Trois

Artibonite

Guayampuo

ATLANTIC OCEAN

Caribbean Sea

Golfe dela Gonâve

LagoEnriquillo

ÉtangSaumâtre

Lac dePéligre

To MonteChristi

To Santiago

To San Juan

To Barahona

To Oviedo

20°N

74°W

74°W

73°W 72°W

73°W 72°W

18°N

19°N

20°N

18°N

0 10 20 30

0 10 20 30 Miles

40 Kilometers

IBRD 40989

MAY 2014

JAMAICA

HAITI

U.S.A.

CUBA

DOMINICANREPUBLIC

Puerto Rico (US)

THE BAHAMAS

ATLANTIC OCEAN

Caribbean Sea

Lesser Antilles

HAITICOMMUNITY-DRIVEN

DEVELOPMENT (CDD) PROJECTAreas of PRODEPUR Intervention

Public Disclosure Authorized - · UCLBP Unité de Construction de Logements et de Bâtiments...

Documents

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