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FOR OFFICIAL USE ONLY Report No: 42888-BD · Development Project Proposal .. 11 LCG LCS LG LGED...
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Document of The World Bank FOR OFFICIAL USE ONLY Report No: 42888-BD INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 69.3 MILLION (US$l09 MILLION EQUIVALENT) TO THE PEOPLE’S REPUBLIC OF BANGLADESH FOR THE EMERGENCY 2007 CYCLONE RECOVERY AND RESTORATION PROJECT (ECRRP) October 6,2008 Sustainable Development Department Agriculture and Rural Development Sector Unit South Asia Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript of FOR OFFICIAL USE ONLY Report No: 42888-BD · Development Project Proposal .. 11 LCG LCS LG LGED...
Document o f The World Bank
FOR OFFICIAL USE ONLY
Report No: 42888-BD
INTERNATIONAL DEVELOPMENT ASSOCIATION
PROJECT PAPER
ON A PROPOSED CREDIT
IN THE AMOUNT OF SDR 69.3 MILLION (US$l09 MILLION EQUIVALENT)
TO
THE PEOPLE’S REPUBLIC OF BANGLADESH
FOR THE
EMERGENCY 2007 CYCLONE RECOVERY AND RESTORATION PROJECT (ECRRP)
October 6,2008
Sustainable Development Department Agriculture and Rural Development Sector Unit South Asia Region
This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
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Bangladesh Emergency 2007 Cyclone Recovery and Restoration Project (ECRRP)
ADB ADRA A S N BRAC BDT BMD BRBE BUET
BWDB CAS CBO ccc CDMP
CEGIS
CFAA
CIG CEIP
CMU C M C U
CONTASA C P A R CPP C P T U CQ CRA DA DAE DC DCA DFID DER D L S DMB DMC DMF DOF DPHE DPP
CURRENCY EQUIVALENTS Cur rency Unit = Bangladeshi T a k a (BDT)
US$1= Tk. 68.60 (Augus t 2008) US$1.57291=1 SDR
GOVERNMENT FISCAL YEAR July 1 -June 30
Asian Development Bank Adventist Development and Rel ie f Agency A Statement o f Audit Needs Bangladesh Rura l Advancement Committee Bangladesh Taka Bangladesh Meteorological Department Brahmaputra River Bank Embankment Bangladesh University o f Engineering and Technology Bangladesh Water Development Board Country Assistance Strategy Community-Based Organizations Component Co-ordination Committee Comprehensive Disaster Management Program Center for Environmental and Geographic Information Services Country Financial Accountabil ity Assessment Common Interest Groups Coastal Embankment Improvement Program Component Management Units Component Management and Co-ordination Unit Convertible Taka Special Accounts Country Procurement Assessment Report Cyclone Preparedness Program Central Procurement Technical Unit Consultants Qualification Community Risk Assessment Designated Account Department o f Agricultural Extension Direct Contracting Development Credit Agreement Department for International Development Disaster and Emergency Response Department o f Livestock Services Disaster Management Bureau Disaster Management Committee Disaster Management Fund Department o f Fisheries Department o f Public Health Engineering Development Project Proposal
.. 11
LCG L C S LG LGED LDRRF LGSP MOA MOFL M&E MLGCRD
MOFDM MOP MOWR M S P MT MTR NCB NGO NDMP O&M OPEC
ORA R A P R B I P P C M U P D O PKSF P M R P O PPA PPR PPRP P R M P PROCMOR PSC PRSP QCBS RAC RBIP RFP RRAP RTIP
Local Consultative Group Least Cost Selection Loca l Government Loca l Government Engineering Department Loca l Disaster Risk Reduction Fund Loca l Governance Support Project Min is t ry o f Agriculture Ministry o f Fisheries and Livestock Moni tor ing and Evaluation Min is t ry o f Local Government, Cooperatives and Rural Development Ministry o f Food and Disaster Management Min is t ry o f Planning Min is t ry o f Water Resources Munic ipa l Services Project Metr ic T o n M id - te rm Review National Competitive Bidding Non-Governmental Organization National Disaster Management Plan Operations and Maintenance Organization for Petroleum Exporting Countries Operational Risk Assessment Resettlement Act ion Plan River Bank Improvement Program Project Coordination and Monitoring Unit Project Development Objective Pal l i Karma Sahayak Foundation Project Monitoring Report Partner Organization Public Procurement A c t Public Procurement Rules Public Procurement Reform Project Procurement Risk Mit igation Plan Procurement Monitoring Report Project Steering Committee Poverty Reduction Strategy Paper Quality- and Cost- Based Selection Regional Accounting Center River Bank Improvement Project Request for Proposals Risk Reduction Act ion Plans Rura l Transport Improvement Project
FOR OFFICIAL USE ONLY
DRR DSC EA EC ECRRP
EMF EMP ERCU
E U FAP FBS FCD FCDI FG F A 0 F M FMR FRRAP
GFDRR
GIS GOB GPN GRRP HNPSP
IBRD
I C ICB IDA IFR IUFR IFRC
ILO IMED
IPM IPNMS
I S M JDLNA JBIC JICA
Disaster Risk Reduction Development Support Credit Environmental Assessment European Community Emergency Cyclone Recovery and Restoration Project Environnemental Management Framework Environnemental Management Plan Emergency Rehabilitation Coordination Unit European Union Flood Action Program Fixed Budget Selection Flood Control and Drainage Flood Control, Drainage and Irrigation Farmer Group Food Agriculture Organization Financial Management Financial Monitoring Report Flood Restoration and Recovery Assistance Program Global Facility for Disaster Reduction and Recovery Geographic Information Systems Government of Bangladesh General Procurement Notice Gorai River Restoration Project Health, Nutrition and Population Sector Program International Bank for Reconstruction and Development Individual Consultants International Competitive Bidding International Development Association Interim Financial Report Un-Audited Interim Financial Report International Federation o f Red Cross and Red Crescent Societies International Labor Organization Implementation Monitoring and Evaluation Division Integrated Pest Management Integrated Plant Nutrient Management System Institutional Strengthening Action Plan Joint Damage Loss and Needs Assessment Japan Bank o f International Cooperation Japan International Cooperation Agency
SA SBD SCF SCIC SDC
SDF SIL SIPP SMP SOE SRPF sss SWAP TOR UFMS
LJN UNDB UNDP UNICEF USAID
VGF WARP0 WFP WMIP
Special Account Standard Bidding Documents Save the Children Fund Sub-component Implementation Cells Swiss Agency for Development and Cooperation Social Development Fund Specific Investment Loan Social Investment Program Project Social Management Plan Statement of Expenditure SocialiResettlement Policy Frameworks Single Source Selection Sector Wide Approach Terms of Reference The Uniform Financial Management Systems Software United Nations United Nations Development Business United Nations Development Program United Nations Children’s Fund United States International Development Agency Vulnerable Group Feeding Water Resources Planning Organization World Food Program Water Management Improvement Project
Vice President : Isabel M Guerrero Country Director : Xian Zhu Sector Directormanager : Constance BernardAdolfo Brizzi, SASSDEASDA Team Leader : Masood Ahmad, SASDA
This document has a restricted distribution and may be used by recipients only in the performance o f their off icial duties. I t s contents may not be otherwise disclosed without Wor ld Bank authorization.
TABLE OF C O N T E N T S Emergency 2007 Cyclone Recovery and Restorat ion Project (ECRRP)
EMERGENCY OPERATION PROJECT PAPER DATA SHEET ................................................................... 5
A . INTRODUCTION ........................................................................................................................................ 6
B . EMERGENCY CHALLENGE: COUNTRY CONTEXT, RECOVERY STRATEGY AND RATIONALE FOR EMERGENCY PROJECT ........................................................................................ 7
C . BANK RESPONSE AND STRATEGY .................................................................................................... 11
D . APPRAISAL OF PROJECT ACTIVITIES ............................................................................................. 19
E . IMPLEMENTATION ARRANGEMENTS AND FINANCING PLAN ................................................ 22
F . PROJECT R I S K S AND MITIGATING MEASURES ........................................................................... 23
G . TERMS AND CONDITIONS FOR PROJECT FINANCING ............................................................... 25
ANNEX 1: DETAILED DESCRIPTION OF PROJECT COMPONENTS .................................................... 27
ANNEX 2: RESULTS FRAMEWORK AND MONITORING ........................................................................ 37
ANNEX 3: SUMMARY OF ESTIMATED PROJECT COSTS AND FINANCING ARRANGEMENTS .. 45
ANNEX 4: FINANCIAL MANAGEMENT AND DISBURSEMENT ARRANGEMENTS ......................... 46
ANNEX 5: PROCUREMENT ARRANGEMENTS .......................................................................................... 56
ANNEX 6: IMPLEMENTATION AND MONITORING ARRANGEMENTS ............................................. 66
ANNEX 7: PROJECT PREPARATION AND APPRAISAL TEAM MEMBERS ........................................ 75
ANNEX 8: ENVIRONMENTAL AND SOCIAL SAFEGUARDS FRAMEWORK ...................................... 76
ANNEX 9: DOCUMENTS IN PROJECT FILE ................................................................................................ 81
ANNEX 10: PROPOSED LONG TERM DISASTER R I S K REDUCTION PROGRAM ............................. 82
ANNEX 11: OPERATIONAL SPECIFIC R I S K MITIGATION MATRIX ................................................... 92
ANNEX 12: STATEMENT OF LOANS AND CREDITS ................................................................................. 99
ANNEX 13: COUNTRY AT A GLANCE ......................................................................................................... 101
MAPS ................................................................................................................................................................... 104
MAP 1: PATH OF CYCLONE SIDR ............................................................................................................... 104
MAP 2: AREA AFFECTED BY STORM SURGE DUE TO SIDR ............................................................... 105
MAP 3: AREA AFFECTED BY THE STORM ............................................................................................... 106
Date: October 6,2008 Country Director: X ian Zhu
Sector ManagerElirector: Adol fo Brizzi/Constance Bernard Lending instrument: S I L
Team Leader: Masood Ahmad Sectors: Flood (Disaster) Protection (60%); Agriculture Crops (20%); General Agriculture Fishing and Forestry Sector (10%) General Transportation (1 0%) Themes: Natural disaster management (P); Other Environment and Natural Resources Management (S); Climate Change (S ) ; Policies and institutions (S) Environmental category: B Partial Assessment
Project ID(s): P111272
Proposed terms: Standard IDA terms
Expected effectiveness date: November 30,2008 Borrower: People’s Republic o f Bangladesh
Total Amount: SDRs 69.3 Mi l l ion (US$109 mill ion Equivalent)
Expected implementation period: December 1,2008 - December 3 1,2012
Expectedrevised closing date: June 30,201 3
Responsible agency: Local Government Engineering Department, Bangladesh Water Development Board, Disaster Management Bureau o f respectively Ministries o f Local Governments, Water Resources, and Food and Disaster Management, also Ministries o f Agriculture and Fisheries and Livestock.
Source Borrower
Local Foreign Total
Total IBRD/IDA Total
Sirmificant. non-standard conditions. if anv: none
79 30 109 79 30 109
5
Total IBRD/IDA 2009 2010 201 1 2012 2013
5 15 30 35 24 Does the emergency operation require any exceptions f rom Bank policies? Have these been approved by Bank management? Are there any critical r isks rated “substantial” or “high”?
Y e s [ 1 N O P I
Y e s [ 1 N o [ 1
Procurement and contract management i s rated highrisk What safeguard policies are triggered, if any? Environment, Resettlement
Yes [Y ] No [I
Bangladesh Emergency 2007 Cyclone Recovery and Restoration Project
A. INTRODUCTION
1. This Project Paper seeks the approval o f the Executive Directors to provide an IDA Credit in an amount o f US$109 mi l l ion to Bangladesh for the Emergency 2007 Cyclone Recovery and Restoration Project (ECRRP). The proposed Credit will help finance the costs associated with the Government o f Bangladesh’s (GOB) efforts to facilitate recovery f rom the damage and losses caused by Cyclone Sidr which hit Bangladesh on November 15, 2007. Bangladesh suffered from extensive damage due to Cyclone Si&. Total damage and losses caused by the cyclone were estimated to be Bangladesh Taka (BDT) 115.6 b i l l ion (US$1.7 billion). More than two-thirds o f this was physical damage and one-third economic losses. The damages and losses were concentrated primarily in the housing sector, productive sectors, and public infrastructure. The cyclone was the second natural disaster to affect Bangladesh in six months. Monsoon floods had previously caused extensive damage to agricultural production and physical assets, totaling U S $ l .l bill ion. The Bangladesh economy has sustained combined effects o f the cyclone and the floods o f 2007 in the estimated amount BDT 189.4 b i l l ion (US$2.8 billion), or 4.7 percent o f GDP o f the previous fiscal year.
2. At the request o f the Government o f Bangladesh (GOB) and i t s development partners the Bank led a Joint Damage, Loss and Needs Assessment (JDLNA) which i s the basis for this operation and overall response to recovery f rom Cyclone Sidr. The JDLNA Report has been distributed among concerned Government agencies, development partners and c iv i l society organizations in the country.
3. The proposed Project will support a medium to long-term recovery program developed under the JDLNA. T h i s will cover restoration o f the agricultural sector in the cyclone affected areas, and reconstruction o f public infrastructure, including reconstruction and improvement o f multi-purpose shelters and rehabilitation o f coastal embankments with “build back better” designs. The Project will build new disaster shelters, strengthen disaster risk reduction and management, support monitoring and evaluation o f the project and i t s impact, technical assistance, strategic studies and training to strengthen future emergency response and preparedness to disasters. Mos t importantly i t will support the preparation and init ial implementation o f the f i rs t phase o f a fifteen year program for long-term disaster r i s k reduction (DRR). T h i s i s vital for Bangladesh as i t i s one o f the most vulnerable countries to natural disasters and climate change.
4. The expected outcomes to be achieved with this proposed project are: (i) restoration o f agriculture sector and livelihoods, (ii) rehabilitation o f critical damaged infrastructure, and (iii) strengthen long-term capacity for disaster risk management and reduction. The agriculture recovery components will help farmers prepare for the 2009 Boro growing season (dry season) and will strengthen their coping ability for future disasters. T h e infrastructure rehabilitation program will generate employment (supporting local livelihoods) and repair o f critical transportation infrastructure and protection infrastructure (e.g. embankments and shelters) that will help improve disaster preparedness and response. The dissemination o f information and upgrading o f cyclone shelter and embankment construction i s expected to reduce future damage to assets as wel l as production losses. The Project will support the building o f approximately 50 new and repairs o f 250 existing multi-purpose shelters, the rehabilitation o f over 100 km o f embankments, and directly benefit about 1,700,000 households in several o f the worst affected districts. The Project will build on the rel ief and recovery measures already initiated by the Government and donor partners.
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B. EMERGENCY CHALLENGE: COUNTRY CONTEXT, RECOVERY STRATEGY AND RATIONALE FOR EMERGENCY PROJECT
Background: Cyclone Sidr
5. Cyclone Sidr (Category IV) hit Bangladesh on the evening o f November 15, 2007. The cyclone, originating f rom a depression over the Bay o f Bengal o n November 11, 2007, hit offshore islands at 1830 hours and made landfall across the southern coast f rom Cox's Bazaar toward Satkhira. Heavy rains were experienced throughout the country, including in the capital Dhaka. The f i rst area hit by Cyclone Sidr was H i ron Point and part o f the Sundarban mangrove forest in Bagerhat. According to the Bangladesh Meteorological Department (BMD), Cyclone Sidr had a radius o f 500 km with the eye o f the storm 74 km wide and wind speeds reaching 220-240 km per hour. The storm caused extensive damage, in particular in the south-westem districts. As i t moved north into central Bangladesh, the cyclone was downgraded to a Category I1 tropical storm.
6. The cyclone caused extensive damage to lives and property. Overall 30 districts in the country and about 9 mi l l ion people (more than 2 mi l l ion families) were affected by the cyclone. The death to l l exceeded 3,000, about 100 were missing, and more than 55,000 people were injured due to the cyclone. There was a nationwide power outage for more than 24 hours. About 1.5 mi l l ion houses were damaged and 4 mi l l ion trees were uprooted or destroyed. The livestock death to l l was over 100,000. The cyclone hit at a time when aman rice, the predominant source o f food in the area, was about to be harvested, and almost 1 13,000 ha and 1,400,000 ha o f crops were totally and partially damaged, respectively. The crop loss was estimated to be about 1.3 mi l l ion tons.
Findings from the Joint Damage, Loss, and Needs Assessment (JDLNA)
7. A comprehensive analysis undertaken by a team o f the Government o f Bangladesh (GOB) and international experts', estimated that the total damage and losses caused by the cyclone to be Bangladesh Taka (BDT) 115.6 b i l l ion (US$1.7 billion). More than two-thirds o f this was physical damage and one- third economic losses. Damage and losses were concentrated in the housing sector (US$840 mill ion, or 50 percent o f the total), productive sectors (US$490 mill ion, or 30 percent), and public sector infrastructure (US$250 million, or 16 percent). The most affected sectors were, in decreasing order, housing, agriculture, transport, water control structures, education, and industry. Damage and losses to private assets and livelihoods outweighed the losses and damage to public infrastructure significantly. (see Table 1).
8. The effects o f the disaster were highly concentrated in the Districts o f Bagherat, Barguna, Patuakhali, Pirojpur, and Barisal, where, according to a 2005 household survey, poverty levels range between 35 percent to more than 50 percent o f the population. Therefore, the disaster had a disproportionate impact on some o f the poorest population groups in the country. The importance o f an effective recovery program cannot be overstated. The number o f deaths caused by Cyclone Sidr, however, was far lower than in similar past events, thanks to improved disaster prevention measures, including an improved forecasting and warning system, coastal afforestation programs, cyclone shelters, and embankments. This highlights the effectiveness o f recovery programs and long-term approaches to disaster management.
9. The cyclone was the second natural disaster to affect Bangladesh in twelve months. Previous monsoon floods had caused extensive damage to agricultural production and physical assets, totaling
' JDLNA team was lead by the World Bank with participation from IFRC, ILO, UN, USAID, EC, IDB, JICA, JBIC, DFID ADB, and FAO. The JDLNA team was financed by the Global Facility for Disaster Reduction and Recovery (GFDRR).
7
US$1 . 1 billion2. The Bangladesh economy has sustained combined effects o f the cyclone and the floods o f 2007 in the estimated amount BDT 189.4 billion, or 4.7 percent o f GDP for the previous fiscal year, which i s a measure o f the negative impact o f natural disasters in the country. The successive occurrence o f these events i s a reminder o f the extreme vulnerability o f the country to frequent hydro-meteorological hazards. Climate change may exacerbate this problem further in the future.
169 4,313
71,064 57,915
8,006 576 157
1,696 4,918 1,734 1,472
262 -
420 420
79,904 1,175
-
Tab1
1,038 415
2,130
1,725 359 46
-
- -
32,083 28,725
2,035 1,258
65 0
35,665 5 24
-
Sector Social Sectors
1,188 4,297
15,758 -
8,006 935 203
1,696 4,918
19 19 - -
420 -
Infrastructure
18 43 1
57,436 57,915
1,725 - - - -
33,798 30,178
2,297 1,258
65 0
Productive Sectors
Cross-Cutting Issues
Total (BDT mill ion) (US$ mill ion)
Source: Estimates by JDLNL
1: Overall Summary
Sub-sector
Health and Nutrit ion Education
Housing Transport Electricity Water and Sanitation Urban and Municipal Water Resource
Agriculture Industry Commerce Tourism
Environment
Damage and Losses (BDT mi Disaster Effects Damage Losses =&&&
'eam
Total 5,934 1,206 4,728
73,194 57,915
9,73 1 935 203
1,696 4,918
33,817 30,197 2,297 1,258
65 420 420
115,569 1,700
ion) OwnershiD
318 I 1,380
10. Preliminary estimates indicate that overall economic growth in the country will be affected by less than 0.5 percent in the current fiscal year, although significantly higher declines will occur in the most affected districts (for which n o detailed estimates o f GDP are available). T h i s decrease in growth i s similar to that estimated for the 2007 floods, and will detract further f rom the pre-disaster estimated growth rate o f 7.0 percent. The import bill i s anticipated to increase due to increased demands for foodstuffs, mainly rice, fertilizers, and other agriculture imports as well as some construction materials. Pressure will mount on the fiscal deficit in view o f required outlays to meet emergency and rehabilitation needs after the disaster.
Government of Bangladesh Response
11. In the days before Sidr's landfall, the Bangladesh Meteorological Department (BMD) issued cyclone warnings. These included advisory messages on the level o f warning, using the Government warning signal system. Warnings were regularly sent to communities. When the warning signal number 4 was alerted on November 14, 2007, 44,000 volunteers immediately activated the community-based warning system, uti l izing megaphones and other devices.
12. After the event, the Armed Forces immediately launched a massive search and rescue effort, early rel ief operations, and played an important role in helping communities bury their dead and remove dead livestock. By Saturday, November 17, 2007, the search and rescue and rel ief activities had been scaled up considerably despite access problems. Whi le telephone communication was partially restored,
World Bank Damage Assessment Report for 2007 Floods
8
power was s t i l l out and was not restored for weeks to come. The Government o f Bangladesh, in collaboration with the UN, the National Red Crescent Society, and the International Federation o f Red Cross and Red Crescent Societies (IFRC), undertook several humanitarian assessment missions and started humanitarian relief operations focused o n non-food items, food aid, nutrition, water and sanitation, shelter, and disease surveillance. The Government allocated 450 mi l l ion BDT (US$ 6.7 Mi l l ion) for re l ief and housing construction, distributed rel ief items, and sent out medical teams.
13. Several national organizations also launched rel ief operations. Bangladesh Rural Advancement Committee (BRAC), for instance, distributed more than 80,000 food packets to families in 11 districts. Their 13 medical teams also treated more than 7,800 patients. BRAC, Adventist Development and Rel ief Agency International (ADRA), and other national NGOs delivered food and non-food rel ief items to the affected families. Grameen Bank, BRAC, and A S A postponed or waived loan payments for members who were affected by the cyclone.
International Response
14. The Disaster and Emergency Response (DER) subgroup o f the Local Consultative Group (LCG) coordinated international humanitarian rel ief and early recovery planning. A number o f coordination meetings were held among the Government, NGOs, and donors. Later, the Ministry o f Foreign Affairs and the Economic Relations Div is ion also organized meetings for Development Partner countries and organizations in order to br ie f them about the impact o f Cyclone Sidr.
15. Bo th the international and national a id communities responded quickly to the crisis. IFRC and Wor ld Vision, for instance, launched rel ief operations in the most affected districts o n November 18 and November 16, 2007 respectively. They distributed plastic sheets, blankets, and cash, as wel l as family packages that included rice, lentils, and oil. The Wor ld Food Program (WFP), as o f December 3, 2007, had distributed High Energy Biscuits and r ice through NGO partners to 249,187 families in the affected districts. UNDP, UNICEF, OXFAM, SCF Alliance, Wor ld Vision, Care Bangladesh, Islamic Relief, Caritas, Christian Aid, Concern Worldwide, Act ion Aid Bangladesh, and the governments o f Japan, US, India, Pakistan, Italy, Saudi-Arabia, Kuwait, UK, and Australia also distributed rel ief packages. Although n o formal international appeal was made by the Government for foreign assistance, the international community was quick to respond and pledged approximately US$241.7 million, as o f December 17, 2007.
Recovery, Restoration, and Reconstruction Needs
16. An integrated, multi-pronged approach for the economic recovery o f the affected area, and for the reconstruction o f destroyed physical assets, i s required to ensure the protection o f the most vulnerable members o f society and to resume socio-economic development in the affected regions. An early recovery stage has provided the most immediate needs (primarily through humanitarian assistance) and helped create a solid foundation for the medium to long-term recovery and reconstruction stages. The early recovery stage included interventions designed to ensure food security, health care, income, and shelter for the most affected and vulnerable population. The medium to long-term stage will provide recovery o f sustainable production in agnculture, industry, and commerce, and reconstruct critical infrastructure (housing, embankments, roads, and shelters) with improved risk resistance. The aim o f medium to long term interventions will be to improve disaster planning and risk resilience capacity, reduce risk exposure, and enhance coping mechanisms.
17. On the basis o f the JDLNA, financial requirements for the program have been identified to be US$1.3 bil l ion. A total o f U S 3 6 0 mi l l ion are required for the immediate/early recovery stage, and the remaining US$953 mi l l ion are needed in the medium-to-long term stages (Table 2 below). This project would only support in i t ia l m e d i u d l o n g term recovery needs. The European Commission (EC) i s providing Euro 13 mi l l ion for restoration o f livelihoods through BRAC. Islamic Development Bank i s
9
managing US$130 mi l l ion provided by a philanthropist which will be used for construction o f cyclone shelters (US$ l 10 mill ion) and restoration o f livelihoods (US$20 million). Swiss Agency for Development and Cooperation (SDC) would co-finance US$0.5 mi l l ion equivalent for construction o f cyclone shelters. DFID and a few other donors are also helping recovery efforts through their regular assistance programs.
Table 2: Financial Needs for Recovery and Reconstruction M e d i u a o n g T e r m Recovery Ear ly Recovery
Protection Food Security Shelter Water and Sanitation Education Health and Nutr i t ion Environmental protection Governance (improve disaster preparedness)
Community infrastructure Recovery Economic and social infrastructure repairs
Income Recovery Agriculture Non-Farm
(US$ Mil l ion)
254.0 45.0 5.0 5.7 2.2 3.2 1.6
28.3
10.0 5 .O
Total I 360.0
and Reconstruction Infrastructure Reconstruction
Housing Transport Infrastructure Power Water and Sanitation Urban road and drainage canals Embankments Education Health Care Environmental protection
Livelihood Recovery Agriculture sector Rura l non-farm sector Financial assistance to housing
Total
(US$ Mil l ion)
20.0 105.0 42.4 119 24.6 106.0 102.0 8.3 15.7
240.0 85.0 85.0
953.0 Source: Estimates by Joint Assessment Team.
18. Disaster Risk Management Strategy. Effective disaster r i s k management i s an essential requirement for the future, especially with the prospects o f additional impacts f rom climate change. In addition to the recovery and restoration program, a long-term strategy and p lan that effectively integrates structural and non-structural, human-oriented interventions to reduce r i s k has been broadly outlined by the JDLNA team, in light o f lessons learned during Cyclone Sidr and previous work carried out under flood action plan studies over the last two decades. A long-term disaster risk reduction framework has been defined by JDLNA team and consists o f the following f ive strategic pillars: (i) risk identification and assessment; (ii) strengthening and enhancing emergency preparedness; (iii) institutional and community capacity building; (iv) risk mitigation investments; and (v) introducing catastrophe r i s k financing in the longer term.
19. The JDLNA Team developed a preliminary 15-year long-term plan o f action to strengthen disaster risk reduction and management. Preliminary estimates for investments required for i t s implementation are US$4.0 b i l l ion spread over three 5-year stages and 5 key pillars, as indicated in Table 3 below. In the fifth pillar, emphasis i s placed on establishing a special disaster response fund, the establishment o f a r i s k transfer mechanism for low-probability catastrophic events, and a climate change multi-donor t rust fund. Details o f this preliminary program are provided in the Annex 10.
20. Ongoing Donor Efforts in Disaster Risk Reduction. T h e proposed long-term disaster r i s k management program o f the J D L N A i s based o n extensive consultations with the Government and various Development Partners and the current costs o f activities are expected to be funded under various ongoing programs. Several partners are currently supporting disaster risk reduction activities including the Asian Development Bank, Uni ted Nations Development Program, DFlD, Japan Bank for International Cooperation, and the Islamic Development Bank. Of these, the Comprehensive Disaster Management Program (CDMP), under the auspices o f the DMB, i s undertaking a number o f interventions aimed at strengthening and improving disaster management and r isk mitigation capacities at various levels, and in
10
promoting and implementing the national strategic priorities and plans set out by the Government. The program has started to make significant contributions to the areas o f capacity building, professionalizing disaster management, partnership development, advocacy for mainstreaming disaster r isk reduction across sectors, community empowerment for disaster risk reduction, and strengthening response management. The CDMP has met with particular success in implementing Community Risk Assessments (CRAs), community-level Risk Reduction Act ion Plans (RRAPs), and small-scale r i s k mitigation interventions funded through the Local Disaster Risk Reduction Fund (LDRRF) in seven pi lot districts. These capacity and institution building activities are envisioned to complement the JDLNA proposed long-term program.
Program Pillars 1. Risk identification and assessment
5-Year Stage! 2008-2012 I 2013-2017
10 3 20 18-2022
2. Strengthening emergency preparedness
4. Risk mitigation works
5. Disaster r i s k response fund
3. Institutional capacity building
- Capacity building for implementation
Multi-donor climate change fund
240 215 10 2
860 1,160 20 10 3 00 80
-
Total
3 245 2
830 10 -
1.090 1,520 1,390
Total 16
700 14
2,850 40 3 00 80
4,000 idLong Term
cost estimates in Table 2:These cost estimates are based on WB Staff estimates, derived through various sources, including GOB estimates, consultations with various Development Partners, and current costs o f activities funded under various ongoing programs, such as the CDMP.
C. BANK RESPONSE AND STRATEGY
21. The Bank i s supporting the cyclone assistance program to help the country cope with the current situation and build resilience to minimize the impact o f h t u r e disasters. The Bank assistance strategy has the following three elements:
Budget Support: A quick-disbursing US$lOO mi l l ion financial support t o the GOB budget has already been approved and disbursed. T h i s will assist in reducing the fiscal pressure o n the FY08 budget arising f rom non-programmed cyclone-related spending andfinancing the immediate recovery needs. The Government used the FY08 B lock Allocations, O&M and the Safety N e t budget to meet the immediate rel ief and rehabilitation needs. This was provided as Additional Financing to the Fourth Development Support Credit (DSC). In addition, US$25 mi l l ion were re-allocated towards immediate infrastructure rehabilitation (such as that o f power and water supply infrastructure) through existing projects.
Livelihood support (medium term restoration and recovery). This includes an additional financing o f US$50 mi l l ion to the Social Investment Program Project (SIF'P) for l ivelihood restoration for the affected poor households, primarily through micro-credit, emergency assistance funds, restoration o f community infrastructure, and income generating activities. The Bank Board o f Executive Directors approved additional financing in June 2008 and livelihood support assistance i s now being initiated in the worse affected areas under the SIPP.
Medium to Long-term restoration and rehabilitation from Cyclone Sidr: The proposed Project (ECRRP) i s expected to be implemented over the next four years commencing f rom December 1, 2008 under IDA financing. I t will largely be focused o n the critical medium to long-term restoration and rehabilitation needs as identified in the JDLNA. The Project will support speedy recovery o f the
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agriculture sector (crops, livestock and fisheries subsectors) and providing technical assistance and support for sustainable improvements in the agriculture in the affected areas. This operation will build synergies with the l ivelihood operation under SIPP as wel l as other ongoing agnculture support programs funded by the Bank, UN, and other bi-lateral donors. I t will also support reconstruction and repairs to damaged infrastructure, such as coastal defenses, including rehabilitation o f embankments and protective forestation, and upgrading and expanding o f cyclone shelters and access roads. Improving mechanisms for risk management, including disaster-risk financing i s also included. Most importantly, the Project will prepare and begin implementation o f the first f ive year stage o f the long- term disaster risk reduction and management program outlined above.
Preliminary Project Description
22. Project development objectives (PDO). The proposed PDO is to support the Government o f Bangladesh efforts to facilitate recovery f rom the damage to livelihoods and infrastructure caused by Cyclone Si& and to build long-term preparedness through strengthened disaster risk reduction and management. The key performance indicators are: (i) Rehabilitation o f infrastructure (e.g. embankments, disaster shelters); Recovery o f agriculture sector and livelihoods; Strengthened disaster risk management. (See: Results Framework in Annex 2.)
23. Project components. The Project i s designed to achieve the above objectives through the following five components, identif ied in the JDLNA (total cost o f US$109 mill ion, see Annex 1 for detailed project description):
Component A: Recovery of Agriculture Sector and Improvement Program (US$l6 million)
24. The objective o f this project component i s to introduce technologies to improve land use during B o n o season (dry season during which area i s not suitable for growing crops due to high salinity levels), introduce crops and technologies to improve resilience o f communities and households in cyclone prone areas to future disasters. T h i s would also help, t o a l imited extent, in providing short-term and medium- term and agnculture recovery assistance to Sidr affected communities and thus improve livelihood. However, l ivelihood restoration in Sidr affected areas i s more broadly addressed through additional financing to the on-going Social Investment Program Project (SIPP, US$50 mill ion) and programs by other donors. The objective wil l be achieved through the following sub-components. A detailed implementation plan for this component i s provided the Operational Manual.
A1 : Suuuort to the crops sub-sector (US$4.7 million). This sub-component wil l promote improved production and marketing technologies in the sub-sector and finance a comprehensive technology package, model demonstrations o f improved technologies and agronomic practices (especially in terms o f y ie ld enhancement and salinity resistance), and farmers knowledge through technical assistance and training to increase the long-term productivity o f popular and new cropsharieties and encourage agricultural diversification in the affected areas and improve resilience to face such disasters in the future.
A2: This sub-component will promote improved production and marketing technologies in the sub-sector and finance the provision o f fisheries equipment (e.g. improved boats, nets and safety equipment) and activities to support sustainability o f fisheries resources, including an improved knowledge base (through surveys and studies) on the status o f coastal small-scale fisheries as wel l as rehabilitation, technical assistance and training related to improved aquaculture (f ish and shnmp) practices.
Supuort to the fisheries sub-sector (US$3.7 million).
A3: This sub-component will promote improvements in the overall management and production practices in the sub-sector, and finance the emergency restoration o f cold chain systems for vaccination delivery, stockmg o f improved goats,
Support to the livestock sub-sector (US$4.2 million).
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sheep and poultry and provision o f livestock feed, introduction o f improved grasses for animal fodder, technical assistance and training and general healthcare o f animals, and construction of improved model dairy and poultry sheds. The focus would be on improved technologies and farmer knowledge about the livestock sector that i s suitable for the coastal areas.
A4: Support to community mobilization and facilitation and component management (US$3.4 million). This sub-component will facilitate the identification and support o f formal and informal farmerhishers’ groups and production and marketing community-based organizations (CBOs) (some o f which will have been formed under the existing SIPP as described earlier) to best deliver howledge, goods and services under this component. I t will also include, inter alia, an awareness/communication campaign and needs assessments directly with the targeted communities and farmer groups at the start o f the project. This sub-component will also finance the operations o f the Component Steering Committee (providing general oversight and coordination), and o f the Component Management and Coordination Unit in Dhaka with two Component Implementation Cells in Barisal directly responsible for the implementation. I t wil l include technical assistance (mostly national consultants), provision o f office equipment and vehicles, and the establishment o f a Monitoring and Evaluation (M&E) system for the component. A detailed implementation plan for this component will be provided in the Operational Manual.
Component B: Reconstruction and Improvement of Multipurpose Shelters (US$40 million)
25. livestock in the cyclone prone areas during future disasters. This will be achieved through the fol lowing sub-components.
The objective o f this component i s to provide greater protection for the vulnerable population and
B1: Construction o f new shelters (US$ 15 million). T h i s sub-component will support construction o f 50 new multi-purpose shelters to build greater protection for future disaster events.
B2: Improvement o f existing shelters (US$15 million). T h i s sub-component will finance the repairs and improvement o f about 250 existing shelters that are damaged or cannot be used due to inadequacies.
B3: Improvement o f communication network to shelters (US$7 million). This sub-component will finance the reconstruction o f the road and communication network to the shelters constructed under the project to make them more accessible and effective.
B4: Design and construction supervision o f shelters (US$3 million). This sub-component will finance consulting services for surveys, designs, environmental and social impact assessments, environment and resettlement management plans, and construction supervision o f multipurpose disaster shelters and a l l works covered under the above components. This will also include resources to facilitate consultations with the local communities in identifying sites, needs and suitable design for the shelters.
Component C: Rehabilitation of Coastal Embankments (US$20 million)
26. The objective o f this component i s prevention o f saline inundation during normal weather and sustained crop production made possible by reducing cyclone damage. This will be achieved through the following subcomponents.
C1: Rehabilitation o f coastal embankments (US$18 million). This sub-component will finance the emergency repair to over 100 km o f coastal embankments damaged during the 2007 cyclone. The repair works will be designed with improved standards so that protection can be provided in these
coastal areas in future f rom similar storms. This will include vegetatiodplantation along embankments to improve the effectiveness o f these structures.
C2: Design and construction supervision o f coastal embankments (US$2 million). This sub- component will finance consulting services for surveys, designs, environmental and social impact assessments, environment and resettlement management plans, and construction supervision for embankments and a l l works covered under the above sub-components. T h i s will also include resources to facilitate consultations with the local communities in identifying sites, needs and suitable design for the embankments.
Component D: Long-Term Disaster Risk Management Program (US$l6 million)
27. capacity and abil ity o f the Government in the medium- and long-term. This objective will be achieved through the following subcomponents.
The objective o f this component will be to strengthen disaster risk mitigation and reduction
D1: Disaster risk mitigation and reduction (US$8 million). This sub-component will support the capacity building o f the Disaster Management Bureau (DMB), support for detailed multi-hazard risk vulnerability modeling and assessment, and the strengthening o f emergency preparedness at the community levels.
D2: Preparation o f future proiects for River Bank Improvement, and Coastal Embankment Improvement Programs (US$6.2 million). This sub-component will finance the preparation studies for selected activities under the f i rst phase (Table 3) o f the identified long-term program. This includes studies related to the River Bank Improvement Program (RBIP) for revamping the Brahmaputra River Bank Embankment (BE) starting f rom the town o f Sirgajanj town to Kazaipur and moving northwards, and Coastal Embankment Improvement Program (CEIP).
D3: Preparation o f future proiects for disaster shelters and upgradation of rural road network (US$1.8 million). T h i s sub-component wil l finance preparation studies for: (a) construction o f new disaster shelters with an investment cost o f about US$300 mill ion; and (ii) up-gradation of rural road network in the disaster prone areas. T h i s would cover feasibility studies, surveys, for the whole investment and tender designs and bidding documents for f i rs t package consisting o f works for about US$lOO mi l l ion.
Component E: Monitoring and Evaluation of Project Impact (US$3.0 Million).
28. This sub-component will finance oversight monitoring and evaluation (M&E) activities to provide continuous feedback to the Government, Project Steering Committee (PSC), and implementing agencies on project performance and impact o f i t s various components, so that corrective actions can be undertaken in a timely manner. The M&E consultants will also supervise implementation o f the overall Environmental Management Framework (EMF) and Social/Resettlement Policy Frameworks (S/RPF), careful review and monitoring o f sub-project specific social and environmental management plans and impact assessments and supervision o f their implementation. This consultancy wil l also help to reinforce overall transparency and governance during Project implementation and targeting o f project intervention to the intended beneficiaries.
Component F: Project Management, Technical Assistance, Strategic Studies and Training, and Emergency Support for Future Disasters (US224 million).
29. This sub-component will support the Government in implementing the project, coordinating al l project related activities, and provide resources for needed strategic studies, technical assistance and training. This includes:
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(Fl) support for the operation o f the Project Coordination and Monitor ing Unit (PCMU) within the Ministry o f Planning (US$3 million); (F2) consulting services, studies and other related costs for establishing financing facility to fund recovery f rom disasters in Bangladesh i.e. disaster management response fundfaci l i ty (DMRF) (US$0.3 million); (F3) strategic studies (e.g. opportunities for buying risk coverage from the international capital market, including re-insurers in case o f catastrophic and rare events), and other studies/pilot projects which may be identified during the project implementation, and for technical and financial audits (US$1.2 million); (F4) technical assistance and training in such areas as disaster management and preparedness, construction, contract management, financial management, training o n environmental and social assessment and (US$ 1.5 million); and (F5) support for emergency recovery f rom a future disaster that may occur during the implementation period o f the project (US$8 million). Possibility o f using these funds for init ial capitalization o f DMRF would be examined, when the fund i s established.
Targeting and Monitoring of Project Interventions
30. The Project targets some o f the worst affected districts. I t specially targets landless households and small, resource-poor farmers in rural communities o f 13 upazilas in Bagerhat, Barguna, Barisal, Jhalokathi, Patuakhali and Pirojpur Districts for the implementation o f Project Component A. This geographic targeting would provide the primary basis for targeting the activities planned under Components B and C (rehabilitation o f coastal embankments and construction and rehabilitation o f cyclone shelters). While, Components B and C interventions would benefit the entire community o f the target villages, the interventions planned under Component A require careful targeting to ensure that the project would reach the most affected people and those who require immediate support to recover livelihoods and agriculture activities in a sustainable manner. The primary target group and beneficiaries for Component A include: landless households; small and marginal farmers; small-scale livestock owners who have been most severely affected by the cyclone (in the selected upazilas), are (or have been, until the cyclone struck) engaged in agnculture activities including fisheries and livestock, and are among the poorest in the affected communities. Assistance under Component A will be further targeted o n households who have not or are not receiving any similar assistance f rom other previous and ongoing projects or programs providing the same type o f l ivelihood rehabilitation and agriculture support in the cyclone-affected areas. Details o f this targeting will be provided in the agreed Operational Manual. Independent monitoring will also be carried out by a group o f consultants (M&E Consultants under component E) who will track the project interventions and their impact.
Community Participation in Project
31. In order to ensure effective targeting for Component A, project beneficiaries are identified and selected through a process involv ing community self- identification and selection, with support f rom - and, where necessary, control and verification by- local authorities (e.g. union chairmen) and service providers, including Departments o f Agriculture Extension, Fisheries and Livestock (DAEDOFDOL) extensionists, non-governmental (NGOs) and project staff based in the field (Sub-component Implementation Cells). Detailed implementation plan i s provided in the component Operational Manual. For the other components, local communities will actively participate in consultations with the relevant staff o f the project implementing agencies o n the identification o f sites, needs, and suitable designs for the rehabilitation and reconstruction o f disaster risk reduction systems undertaken as part o f this project. They will be involved in every stage o f the Project and/or scheme implementation, including planning, and deciding site specific designs and implementation issues. The preferences, priorities and concerns o f those potential beneficiaries will be fully integrated into the final designs and implementation schedules o f project interventions. Any technical assistance should be community and needs-based and take into account the special circumstances o f affected people in this particular disaster situation. The contribution f rom beneficiaries (cash and/or kind) towards project interventions as we l l as the introduction o f newhmproved production, processing and marketing technologies through productiodfarmer groups
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should ensure the full participation o f beneficiaries and the full decentralization, democratization and transparency o f project interventions.
32. Provisions have been included under Component A o f the project to carry out awareness/communication campaign to disseminate information on project activities, beneficiary targeting and selection criteria and processes; community mobil ization and facilitation, including in beneficiary identification and selection; assessment of needs and interests in terms o f choice o f crops, adoption o f improved technologes and practices, etc.; and delivery o f program goods and services to beneficiaries (farmer groups or individuals; some o f which may be identified and formed through the existing SIPP). Services o f international and national NGOs would be obtained to assist community consultations, targeting and delivering the project inputs under Component A who will be selected through a technical and institutional review o f NGOs already operating -or able to operate- in the affected areas.
33. The rehabilitatiodconstruction activities o f the project will generate employment for people in the cyclone affected areas and will help in reviving the local economies, generating employment and addressing rural poverty issues which have become very acute after the cyclone. Moreover, many o f the activities (including, for example, forestation along embankments, simple repair and construction works, and earth work for construction o f “killa” livestock shelters) will be carried out by communities through community-based contracts. The activities under Component A, besides the delivery o f urgently needed production inputs and implements, would provide new crops and seed varieties and extension practices appropriate to specific agro-climatic and soil/drainage conditions o f the project area. The Project will also introduce new livestock and aquaculture production and management techniques and practices to the affected communities to be able to improve production and productivity and incomes in a progressive manner.
Coordination with International Donor Recovery Activities.
34. Coordination with other donors supporting medium to long-term cyclone recovery and restoration activities will be critical. This Project has been designed to avoid duplicating efforts and resources. The primary donors who are implementing similar project activities include the Islamic Development Bank and the European Union. The IDB ($130 mill ion) i s currently supporting the building o f new multi- purpose disaster shelters ($1 10 mill ion) and l imi ted ($20 mill ion) activities in near-term livelihoods restoration. The selection o f sites will be coordinated between the IDB and Wor ld Bank to maximize the area covered by these shelters. The European Commission (Euro 13 million), working through BRAC, wil l deliver input and capital items to farmers o n a 100% grant basis to BRAC clients in 30 upazilas in 9 districts (Patuakhali, Barguna, Barisal, Pirojpur, Jhalokahti and Bagerhat, Bola, Gopalganj and Madharipur). Delivery targets are based on area covered, and not numbers o f beneficiaries. The Project, however, will target specific identified beneficiaries and work through local NGOs to identify the most appropriate farmer/community based organization for delivery o f inputs and assets. Existing BRAC clients will be avoided to ensure that the poorest and most severely affected are reached (criteria details will be provided in an Operations Manual). LGED will track the construction o f shelters by various donordentities through a GIS system. Planning Commission, through which a l l projects are processed, will also help in coordination and developing synergies among restoration and recovery efforts by various donors. The Local Consultative Group fi-amework would also be used to ensure coordination in various Sidr recovery efforts. During implementation o f the Project, regular meetings with other donors will be held to ensure continued coordination and sharing o f information.
Monitoring and Evaluation (M&E) of Project Implementation, Outcomes and Impact
35. Adequate arrangements are incorporated in the project to ensure diligent M&E o f project implementation progress, targeting and community consultation processes, delivery o f project inputs, project outputs and outcomes using the Results Framework (Annex 2) as the basis. At the overall project
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level, there are two levels o f M&E. The M&E Consultants based in the Project Coordination and Monitoring Unit (PCMU) o f the Ministry o f Planning would assist the Ministry on overall project oversight and monitoring and evaluation (M&E) activities and provide continuous feedback to the Government, Project Steering Committee (PSC), and implementing agencies o n project implementation performance, issues and impact o f i ts various components, so that corrective actions can be undertaken in a timely manner. The implementing agencies (LGED, BWDB, DMB, and FAO) o f the respective project components would track, monitor and evaluate project implementation, prepare and submit quarterly and annual project implementation plans and budgets o n the guidance o f the PCMU. These plans and budgets wil l provide a basis for the PCMU to prepare consolidated implantation plans and budgets to carry out monitoring o f the project implementation performance. The reports will cover the progress and expected completion date for c iv i l works and equipment/goods contracts, progress o n institutional components, training and studies, and activities o f the project implementation consultants, M&E consultants, and other technical, procurement and financial management consultants. The reports will also cover financial and procurement information, including: (a) comparison o f actual physical and financial outputs with forecasts, and updated six-months project forecasts; (b) project financial statements, including sources and application o f funds, expenditures by category statement, and designated account reconciliation statement for Designated Account (DA); and (c) a procurement management report, showing status and contract commitments.
36. An independent M&E consultancy will be financed under Component E that will report t o the PSC and i s responsible for overall monitoring and evaluation o f project implementation and impact o f various components and sub-components. They will also supervise implementation o f the overall EMF and S/RF’F, review and monitor for each sub-projects the specific social and environmental management plans and assessments, and supervision o f their implementation. The M&E activities are l ikely to cover, but are not l imited to: (i) the impact o f the disaster risk reduction measures on the communities at various levels, change in the level o f protection, resilience to cope and manage the disasters; (ii) targeting o f project interventions and the impact o n various productive activities such as crops, livestock, fisheries, shrimp, trade and industry, and impact on health and environment; (iii) the environmental and social impacts o f construction activities in the project area in particular o n any wetlands, ecologically important sites, population and livestock; (iv) any acquisition o f public and private land and assets, agreements reached and arrangement made for acquisition o f assets; and (v) the socio-economic impacts and the impact o n the level o f employment, l ivelihood and household incomes in the project area; estimation o f the project overall benefits and economic rates o f return. M&E will be carried out using latest technology available such as satellite imagery and GIS systems, where necessary.
37. M&E Consultants will also monitor compliance with social and environmental safeguards o f the Project. They will supervise implementation o f the overall Environmental Management Framework (EMF) and SocialResettlement Policy Frameworks (S/RPF), careful review and monitoring o f sub- project specific social and environmental management plans and impact assessments and supervision o f their implementation. This consultancy wil l also help to reinforce overall transparency and governance during Project implementation.
38. At the f ie ld level, the district offices o f the component implementing agencies would monitor physical progress o f the project activities. Activities under Component A will involve the delivery o f production inputs, implements and technology to a large number o f people and therefore will require intensive implementation oversight and monitoring o f the implementation and outputs/outcomes. For this purpose, two Component Management Units (CMUs) will be set up, one in Dhaka and one in Barisal. The FAO, as the implementing partner for Component A, will provide internationally and nationally hired full time and short term experts, including full time M&E officers to oversee and monitor the implementation o f the Component A and i t s impacts. The district, upazila and union levels staff o f the DAE/DOF/DLS would provide assistance for carrying out these tasks. As the activities under Component A will be planned and implemented through the existing community organizations through a consultative and transparent manner, the baseline information and data required for M&E o f the project
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implementation and outputs/outcomes will be generated at the community level through their active participation.
Eligibility for processing under OP/BP 8.00
39. T h i s project i s eligible for processing under OP/BP 8.0 since Cyclone Sidr has been a major economic disruption to the country and immediate assistance i s required to restore and rehabilitate physical and economic conditions. Moreover, the Bank has extensive experience in disaster mitigation in the region. Over the last several years, recovery and rehabilitation projects related to flooding and other natural disaster effects have been approved, including, most recently, an Emergency 2007 Flood Restoration and Recovery Assistance Program and flood assistance programs in 2004 and 1998. The project will also build on the experience o f workmg with the GOB in several on-going projects related to the sectors that this project will address. Bank i s helping GOB in long term strategy for disaster risk reduction, implementation o f which will be advanced substantially through this operation. Lastly, the Bank will work closely with other donors involved in rehabilitation and reconstruction efforts in Bangladesh (e.g. ADB, EC, and DFID).
Consistency with Country Assistance Strategy
40. Rationale for Bank involvement. In l ine with the Country Assistance Strategy (CAS) as wel l as the GOB Poverty Reduction Strategy Paper (PRSP), the proposed project will finance activities that are consistent with building the capacity for long-term disaster r isk management, which i s critical to sustainable economic growth and poverty reduction. The program will directly support cyclone-resistant infrastructure rehabilitation, l ivelihood restoration and vulnerability reduction.
41. The Bank has a long history o f partnership and collaboration with Bangladesh-in particular in responding to natural disasters (e.g. 1987, 1988, 1998,2004 and 2007 Bank f lood recovery programs) and supporting the long-term goals in the water-related sectors. The Bank i s also seen as a trusted partner and a key coordinator for international financing initiatives and the development partners. T h i s was evidenced during the post-Cyclone efforts and the leadership role that the Bank was requested to play by the Government o f Bangladesh in coordinating the JDLNA.
Expected Project Outcomes
42. The expected outcomes to be achieved with this proposed project are (i) restoration o f agriculture sector and livelihoods; (ii) rehabilitation o f critical damaged infrastructure; and (iii) strengthening o f long-term capacity for disaster r i s k management. The results framework and arrangements for result monitoring are provided in Annex 2.
43. The Project will build on the rel ief and recovery measures already initiated by the Government and donor partners. The agriculture recovery components will help farmers prepare for the next growing season and will strengthen their abil ity to cope with future disasters. The infrastructure rehabilitation program will generate employment and repair critical transportation infrastructure and protection infrastructure (e.g. embankments and shelters) that will help improve disaster preparedness and response. The dissemination o f information and upgrading of multi-purpose cyclone shelter and embankment construction and rehabilitation i s expected to reduce future damage to assets as we l l as production losses. The Project will support the building o f approximately 50 new and repairs o f 250 multi-purpose shelters, the rehabilitation o f over 100 km o f embankments, and directly benefit about 1.7 mi l l ion households in several o f the worst affected districts. By the end o f the project period, component A i s expected to have reached approximately 57,000 poor farming households in the selected upazilas and unions. Of this total, about 23,000 are more directly involved in the crops sub-sector (including horticulture), 14,000 in capture fisheries and aquaculture and 20,000 in livestock (cattle and poultry).
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D. APPRAISAL OF PROJECT ACTIVITIES
44. A complete economic analysis o f this project i s not possible until the specific locations o f investments, to be financed under this operation, are known. Sub-projects to be financed, though, wil l be l imited to those in most urgent need o f rehabilitation and restoration.
Technical
45. The damages f rom Cyclone Sidr were concentrated mostly in the housing sector, productive sectors (e.g. agriculture), and public sector infrastructure. Excessive winds, increased flooding and the storm surge, resulted in both the total and partial destruction o f various housing types (e.g. pucca, semi- pucca, kutcha). Whi le the damages were high in the housing sector, the population was relatively resilient and was able to restore a significant portion o f their dwellings. T h i s was assisted by timely Government distribution o f small rebuilding grants and materials for housing.
46. In general, the repairs and reconstruction o f infrastructure proposed under the project consist primarily o f repairs to public sector infrastructure (e.g. embankments, shelters, roads). The major works involved are: (i) new and reconstruction o f shelters o f appropriate standards and improvement to the road network leading to the shelters; and (ii) re-excavation o f channels and rehabilitation, improvement, and restoration o f embankments to mitigate drainage and flooding problems.
47. The project c i v i l works are not complex. The major technical issues that will be handled under the project are: (i) choice o f design o f appropriate structure and material for construction o f shelters; (ii) appropriate design o f embankments, particularly sea facing embankments, minimizing costs by using locally available material and enhancing the protection levels; (iii) integration o f vegetatiodplantation in the embankment design; (iv) strategic re-alignment o f the existing embankments, if necessary, to improve their effectiveness; (v) development o f new low-cost technique to control embankment erosion and toe erosion for sea facing embankments; (vi) appropriate pi lot ing o f coastal afforestation techniques as non-structural approaches to dissipate coastal storm waves; and (vii) participation o f the local communities in the project works in order to generate employment for the cyclone affected communities.
48. Lastly, the introduction o f improved technologies and developing alternatives for the agriculture sector will allow for cropping under relatively saline environments that result f rom storm surges. The challenge i s to provide a comprehensive package o f materials (e.g. seeds, fertilizer, and power tiller) and appropriate technologies as wel l as agronomic practices to the farmers to help farming families recover and build more resilience. Appropriate designs for improved fishing vessels and improved livestock and poultry sheds will be used.
Fiduciary
Procurement (See Annex 5 for more details)
49. Procurement Environment and Reform Actions. Bangladesh has undertaken procurement reforms which i s a major step forward in improving the public procurement environment. Though most key pol icy reform actions are in place including the new procurement laws with associated rules and relevant documentations, i t s full implementation and monitoring s t i l l remains a challenge. K e y challenges include inadequate enforcement o f regulations, inadequate adherence to the provision o f procurement approval process, delays in contract award, ineffective contract administration, allegations o f fraud and corruption including collusive bidding practices in small value contracts, and political interference. Considering a l l these factors, procurement under the project will require special measures to minimize associated risks.
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50. Procurement Risks and Measures. A s mentioned in Annex 5, given the type o f intervention and nature o f procurement, the project i s considered a “high r i s k ” operation f rom the viewpoint o f public procurement. The assessment i s based on general environment for public procurement in the country as wel l as the previous experience with LGED and BWDB in implementing IDA-financed projects. Though both agencies have wide experience in implementing IDA-financed projects, they are not immune from the systemic procurement issues; there i s s t i l l substantial need for monitoring and oversight at the agency level in compliance with the agreed procedures and strengthening procurement management capacity. As part o f the ongoing IDA-financed follow-up project, Public Procurement Reform Project I1 (PPRP II), while a number o f reform actions are underway to which both agencies are involved, several special measures have been introduced in this project to minimize procurement associated risks. K e y features include: formation o f large packages with pr ior reviews, provision o f a procurement r isk mitigation plan (PRMP) with a set o f measurable indicators including fraud and corruption, complaints handling mechanism, frequent post reviews, and disclosure o f contract award information. Detai l arrangements are described in Annex 5 (Procurement Arrangements).
Financial Management (See Annex 4 for more details)
5 1. The financial management capacity assessment o f the different implementing agencies (BWDB, LGED, and Ministry o f Food and Disaster Management -MoFDM) i s given in Annex 4. Given the involvement o f multiple implementing agencies under different ministries with l imi ted financial management (FM) capacity, the init ial FM risk for the project i s rated as High. Upon implementation o f the FM arrangements and action plans with the GOB (utilizing the arrangements o f existing projects such as WMIP), the residual risk i s expected to come down to Substantial. The finalized project financial management arrangements will comply with the requirements o f Bank OPBP 10.02.
52. Over the last several years, GOB has been addressing key wealaesses in financial management, as identified in the Country Financial Accountability Assessment (CFAA), through a series o f reform programs supported by DFID, WB, and a few other development partners. Although GOB has taken several steps to improve i t s public financial management and procurement systems and the overall trajectory o f change has been positive, the pace o f progress has been slower than anticipated. Despite the weak overall country financial management environment, fiduciary risk in donor-funded projects has been greatly minimized due to government pol icy o f stipulating additional implementation arrangements in those projects.
53. Funds Flow: IDA funds for the project will f low through segregated Designated Accounts (DA) for Ministry o f Planning (MOP), LGED,BWDB and DMB to be opened as Convertible Taka Special Accounts (CONTASA) with such branches o f a commercial bank as having adequate experience (in maintaining such accounts), acceptable to IDA. Implementing agencies will be responsible for managing their respective designated accounts, the varying authorized limits for which will be set depending o n the amount o f project fund to be allocated for various components. The FM capacity o f the LGED district offices having been assessed as inadequate, IDA funds will not f l ow to those locations. The staffing and the accounting systems in BWDB Regional Accounting Centres (RACs) have been assessed as adequate for handling IDA funds, as such, IDA funds f rom the designated account for BWDB will f l ow to the operating bank accounts in the RACs as and when the need for decentralized payment should arise. Project funds will also f low through direct payments and issuance o f special commitments as and when required. The minimum application size for direct payments will be set at 20% o f outstanding amounts in the respective DAs. The amount payable to FA0 for implementing the Agriculture Recovery component will be disbursed through direct payment to be handled by the PCMU. The cost for land acquisition will be financed by the Government.
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Lessons Learned
54. The Bank has accumulated significant experience in supporting post-disaster recovery projects. This experience indicates, at the general level, that sustainable recovery not only requires timely implementation o f rehabilitation and reconstruction activities, but also preparation o f a program that places these activities adequately within the longer-term goal o f reducing overall disaster vulnerability. Moreover, as cross-country experience also shows, achieving this objective requires government commitment combined with community and private sector involvement. In the medium-term, in a vulnerable country such as Bangladesh, multi-hazard risk mitigation approaches should be mainstreamed through the CAS and sector strategies, and through regular operations.
55. The success o f the emergency assistance program depends on h o w fast sustainable results are obtained on the ground. Effective implementation o f post-disaster assistance activities is, therefore, critical. In this respect, the program i s designed to reflect the fo l lowing lessons learned from the 2004 and 2007 flood restoration and recovery programs:
Emergency recovery operations should have a simple design, taking into consideration local implementation capacity and the fact that this capacity may be strained in the aftermath o f a natural disaster; Effective and simple implementation arrangements should be put in place; Whenever possible, experienced and properly staffed implementing agencies should be relied upon to ensure smooth progress; These agencies should be empowered to take decisions in a timely manner, and to be able to access funds with minimum bureaucratic requirements, while maintaining acceptable fiduciary controls; Complex multi-sectoral operations, requiring major central oversight and protracted decision- making processes, should be avoided; Short-term rehabilitation activities should be implemented separately f rom medium to long-term hazard reduction activities and institutional capacity building, since these require additional preparation (often with inputs from international experts and technical studies) and longer implementation period, and are therefore better addressed through regular operations; and Appropriate management attention and adequate resources for supervision should be provided.
Safeguards
56. In view o f the emergency nature o f the Project (processed under OP 8.0), and the proposed areas for Bank financing, a full-fledged Environmental and Social Assessment was not camed out. Nevertheless, a rapid environmental and social assessment was undertaken as part o f the damage, losses, and needs assessment exercise. On the basis o f this assessment, and consideration o f the emergency nature o f the Project, the Project is classified as a Category ‘B ’.
57. The potential negative environmental and social impacts o f the Project are expected to be limited, since it primarily supports rehabilitation o f damaged infrastructure and facilities. Some land acquisition may be required for new construction components (e.g. new disaster shelters or realignment o f embankments). However, for a l l works (both rehabilitation and new), along with detailed surveys and designs, environmental and social assessments (EAs, SAs) will be carried out (and cleared by the Bank) along with the necessary environmental management plans (EMP) and social management plans (SMP) which will highlight mitigation measures for al l potential adverse impacts.
58. T o ensure overall environmental and social sustainability o f the Project, an Environmental Management Framework (EMF) and SocialResettlement Policy Framework (S/RPF) will be required. The implementing agencies involved already have experience in implementation o f Bank-financed
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projects and preparing EMPs and SMPs, in accordance with Bank guidelines and procedures. Building upon these experiences in developing such frameworks for Projects with similar types o f c i v i l works activities e.g. Water Management Improvement Project (WMIP), Flood Restoration and Recovery Assistance Program (FRRAP), Municipal Services and Rural Transport Improvement Projects, a Project specific EMF and S R P F will be developed in advance. For instance, the EMF and S/RPF agreed upon with the GOB under the WMIP highlights the range o f environmental (e.g. local drainage patterns changed) and social (e.g. land acquisition) issues that may arise with these types o f c iv i l works activities and possible mitigation measures. Depending on the site-specific details, many o f these measures will be applicable in this Project. The EMF and S/RPF will be prepared and agreed with the Bank pr ior to issuing any works contracts under the Project.
59. The EMF and S/RPF will set out policies, acts, rules, procedures to be followed and organizational arrangements to manage the environmental and social impacts. Mit igat ion measures will be defined to minimize environmental and social impacts. The EMF and S/RPF will provide screening, monitoring, and post-evaluation mechanisms. The sub-project o r scheme specific EMPs and SMPs wil l be guided by the EMF and S/RPF and will provide site-specific mitigation and monitoring measures.
60. Ensuring compliance will also be facilitated by a separate independent M&E consultancy (financed under sub-component E) that will report to the PSC and i s responsible for overall monitoring and supervision o f the implementation and impact (including environmental and social) o f various sub- components and individual EMPs and SMPs. They will also supervise implementation o f the overall EMF and SRPF, review and monitor for each sub-projects the specific social and environmental management plans and supervision o f their implementation.
61. In summary, the steps involved and organizational arrangements to ensure appropriate application o f Bank’s safeguard policies are: (a) development o f a project specific EMF and SRPF based o n the existing agreed frameworks with the LGED and BWDB the two implementing agencies as soon as possible and pr ior t o starting up any works under the project; (b) development o f sub-project or scheme specific EMPs and SMP according to the agreed EMP and S/RPF as part o f the design report for such sub-project; (c) screening and review for adequacy o f the proposed EMP and S M P by independent M&E consultants and clearance by the Bank as required along with the design report; (d) supervision o f EMPs and SMPs by the M&E consultants during implementation; and (e) review and supervision o f safeguard polices by the Bank as part o f regular supervision program.
E. IMPLEMENTATION ARRANGEMENTS AND FINANCING PLAN
62. The project will be implemented by four agencies, the Ministry o f Food and Disaster Management (through DMB), the Ministry o f Agriculture and the Ministry o f Fisheries and Livestock (through FAO), the Ministry o f Water Resources (through BWDB), and the Ministry o f Local Governments (through LGED). A Project Steering Committee (PSC) wil l be established in the Ministry o f Planning. The PSC will be chaired by the Secretary o f Planning, and include Secretaries o f the Ministries o f Water Resources, Agriculture, Fisheries and Livestock, Food and Disaster Management, Local Governments, and Director Generals f rom BWDB and LGED. The PSC will provide oversight and coordination in implementation o f the Project. A small Project Coordination and Monitoring Unit (PCMU) will be established in the Ministry o f Planning to coordinate and manage the Project. The P C M U would be headed by a Project Coordinator and supported by a Technical Specialist a Procurement Specialist, a Financial Management Specialist, and an Accountant and support staff. FA0 will be contracted to implement Component A in coordination with the Ministry o f Agriculture and the Ministry o f Fisheries and Livestock (see Annex 6 for details). LGED will be responsible for implementation o f components B and sub-component D3. BWDB will be responsible for components C and sub-component D2. The Ministry o f Food and Disaster Management
Implementation Arrangements (See Annex 6 for details and Charts 1 and 2).
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will be responsible for implementation o f sub-components D1 and F 2 (jointly with Ministry o f Finance). The Ministry o f Planning will implement component F (except F2).
63. December 1,2008 to December 3 1,2012 and the credit closing date would be June 30,2013.
Implementation Period. The project implementation period would be about four years f rom
Project Costs and Financing Plan
64. The total project cost i s US$109 mi l l ion (the project cost by component i s given in Annex 3). The project cost i s financed by the IDA including the taxes and duties and cost o f land acquisition and resettlement if any. It i s not possible up front to identify precisely the location and extent o f land that may be required for the project facilities until detailed surveys and structural designs are completed and associated Resettlement Act ion Plans (RAPS) are prepared according to the framework outlined in the Safeguard section o f the Project Paper. Hence, i t i s not possible to confirm at this time whether or to what extent IDA financing will be required for purposes of land acquisition. If and when the need for land acquisition i s identified during project implementation, any such acquisition will be carried out only with pr ior approval o f the Bank, and the eligibil i ty o f financing the costs o f such land acquisition costs f rom the IDA credit shall be determined in accordance with Bank operational procedures.
F. PROJECT RISKS AND MITIGATING MEASURES
65. The Project Risks originate f rom both broader country specific r isks and project specific operational r isks. Country specific risks are related with country engagement with Wor ld Bank and governance. Engagement o f the current Care-Taker Government with the Wor ld Bank i s strong at present with high ownership for the project. Given the objectives and nature o f project interventions and that the project does not envisages controversial pol icy and institutional reforms, i t i s unlikely that the level o f ownership would diminish with a new elected Government in place after December 2008. Governance i s an over-riding concern in Bangladesh and governance r isks remain high for this project. Overall, the country situation has improved over the past few years due to various risk mitigation measures introduced and enforced by the Government in the areas o f public procurements, supported by the Wor ld Bank under the Public Procurement Reform Project during 2002-2007. As a part o f the reform, the Government has made significant procurement reforms as elaborated in Annex 5. Whi le , these reforms and rules are being implemented by a l l public sector entities with varying degrees, Government has started a follow-up project- the Public Procurement Reform Project I1 in September, 2007 with Technical Assistance support f rom the Wor ld Bank. The follow-up project focuses largely the key sectoral agencies, including the BWDB and the LGED.
66. N o t withstanding the high level o f Government commitment for the project at top level, slow disbursements o f donor-funded projects, reflecting weak implementation capacity, i s an ongoing concern in Bangladesh. However, the project plans to support sectors where established implementation arrangements already exist and therefore, smooth implementation i s expected. The Project may also face some procurement risks, in particular inappropriate and collusive bidding practices for which mitigation measures are introduced, as described in the procurement section above (procurement r isks i s rated high). In this respect, program implementation arrangements have been kept as simple as possible, maintaining the decision-mahng process and accountability at the level o f the responsible l ine ministry and implementing agency or department. The works and activities would be packaged into large contracts making procurement and monitoring relatively easier. Moreover, post-cyclone rehabilitation activities will be closely monitored, relying heavily on country office staff and independent monitoring and evaluation consultants.
67. Governance issues, especially potential opportunities for misappropriation o f resources or politicization o f recovery assistance, are o f concern during the implementation o f the emergency recovery
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programs. However, the governance situation has improved during the tenure o f the caretaker Government. The implementing agencies involved, particularly LGED (which i s using bulk o f the funds), also have good track records in terms o f procurement and financial management. BWBD capacity i s being built under the ongoing, IDA financed, Water Management Improvement Project (WMIP) to manage procurement and implementation o f contracts in transparent and effective manner through o f more procurement staff, training and a Panel for Procurement. Also to mitigate this risk, close fol low up i s planned, emphasizing due diligence in procurement and independent audits, coupled with periodic reviews o f accounts, statements o f expenditure, and close monitoring o f the targeting o f investments under the Project. The PSC will also monitor the project implementation closely and initiate performance audits o f key contracts.
68. In addition to broader country specific issues, the project-specific r isks originates main procurements, financial management and implementation o f the activities. Project specific procurement and financial management r isks are high, but adequate measures have been built-in to the project design to mitigating those risks. These are outlined in Annex 4 and Annex 5 respectively. The project has identified certain other operational r isks related with Components A, B and C which involve substantive project interventions in the field -see Annex 1 1. For example, Component A involves the distribution o f apcu l tu ra l inputs and implements and dissemination o f new apcu l tu ra l technologies to a large number o f farmers (crop, livestock, and fishery subsectors) dispersed geographically over the target project area. There i s a r i s k that the most affected communities are not properly identified, or same communities already received assistance under the completed and ongoing cyclone relief/recover assistance programs may be benefitted again by the project leaving out the vulnerable ones, or benefits and funds are captured by a few elites in the affected villages. The implementation design includes measures to reduce these r isks by engaging the FA0 to be the lead implementing partner with the DAE, the D L S and the DOF to coordinate the component activities with other ongoing programs. Also, a participatory, bottom-up and consultative implementation strategy has been adopted for the Component A to ensure proper targeting, need identification, delivery, and monitoring o f the project activities. Detailed implementation arrangements are available in Annex 6 and Operation Manual for Component A, which i s in Project Files. Targeting o f beneficiaries and impact o f project support would be monitored by independent M&E consultants reporting to the Project Steering Committee. There are some risks associated with processing contacts with UN agencies, including current practice o f processing waiver for some clauses in the contract. However, these r isks outweigh the expected benefits by implementation by FA0 that otherwise the component A may face if implemented through private companies and NGOs etc.
69. Components B and C, which include preparation o f technical designs, including bills o f quantities and cost estimates, and procurement o f c iv i l works, would also pose high risks. Inadequate supervision and certification o f designs, bills o f quantities, and completed works including construction quality, and unsatisfactory adherence to agreed procurement procedures may provide opportunities for fraud and corruption. Various measures have been incorporated in the design to lower these operational risks. Those include: (i) two international engineering consulting f i r m s will be assigned to the two implementing agencies to carry out engineering surveys, designs and construction supervision including quality assurance, preparation o f biding documents, and final certification o f the quantity and quality compliance o f the works completed by the contractors. In addition, the Consultants will assist the agencies in the procurement process for the selection o f c iv i l works contractors and contract management as an independent party and also act as the “Engineer” for the c iv i l works contracts. These measures would mitigate the r isks o f fraud and corruption to a greater extent; and (ii) Under Component A, an awareness/communication campaign and need assessment will be conducted directly with the target communities o f the selected project districts to facilitate proper targeting, identifying community needs, delivering project assistance. This campaign, to the extent possible, would be used to identify rehabilitatiodnew construction needs under these two components too. Communities would be shared with the necessary financial and technical information o f the contracts and they would be mobil ized and guided to carry out community level monitoring o f the works. Operational Risk Management Act ion Plan has been prepared describing these r isks and mitigation measures and i s available in project files.
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G. TERMS AND CONDITIONS FOR PROJECT FINANCING
70.
Credit conditions and covenants
The proposed project will be an IDA credit operation with standard IDA terms for Bangladesh,
71.
72.
73.
74.
Prior to negotiations: None
Conditions for Board Presentation: Approval o f Development Project Paper by the Executive Committee o f National Economic Council (ECNEC).
Conditions for Effectiveness: None
During Implementation:
GOB shall ensure that the Project Steering Committee, and staff in PCMU, LGED, BWDB and DMB are maintained with appropriate terms o f reference agreeable to the Association, until project completion; GOB shall carry out the different parts o f the Project through the Implementing Agencies as relevant and shall carry out Part A o f the Project with the assistance o f FAO. GOB implementing agencies (PCMU, LGED, BWDB and DMB) maintain a financial management system for the Project, maintained by qualified s ta f f comprising an updated financial manual and a computerized Project Accounting and Management Information System until project completion; GOB shall ensure that a l l implementing agencies (PCMU, LGED, BWDB and DMB) maintain a financial management system for the Project, maintained by qualified staff until project completion; GOB would ensure that independent private auditors are engaged to provide an assurance o n the effectiveness and application o f internal controls over contractual payments and to carry out post-procurement reviews. GOB would ensure that procurement documentation and record keeping systems, including a website showing the status o f procurement o f various contracts and their performance would be established and made fully operational by PCMU and a procurement complaint handling system i s put in place by not later than June 30,2009; PCMU, LGED, BWDB and DMB and other implementing agencies would monitor the physical and financial progress o f the Project, implementation o f the overall as well as subproject level environmental and social management plans, and the project impact studies, analyze the data o n key performance indicators o n a regular basis and prepare and submit quarterly and annual progress reports, and by March 31 each year annual work plans for the following year. The annual work program for the following year will be finalized in agreement with the Association, not later than M a y 3 1 each project year; the mid-term review (MTR) o f the Project would be undertaken by December 1, 2010.
Implementation and Quality o f work
75. GOB shall prepare an Environmental Management Framework and SocialResettlement Policy Framework to ensure the overall environmental and social sustainability o f the Project, satisfactory to the Association, pr ior to issuing any works contracts under the Project.
76. GOB shall ensure that the technical scope, description, terms o f reference, specifications and designs o f a l l project activities, (goods, works and services) are based o n international standards
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followed for such works and that al l environmental and social management plans (EMPs and SMPs) are successfully implemented and satisfactory to the Association.
77. GOB shall obtain approval o f the Association pr ior to acquisition o f land required for the purpose o f constructing the Project facilities.
78. The Recipient shall, n o later than January 31, 2009, appoint an independent procurement consultant, working with the PCMU, with qualifications and terms o f reference acceptable to the Association and ensure that: (i) for a l l contracts procured under the Project and subject to pr ior review, said independent procurement consultant participates in al l bid evaluation committee meetings, assists the bid evaluation committee and prepares an oversight report o n the overall procurement process; and (ii) for procurement carried out through LGED and BWDB, regardless o f the value o f the contracts, the bid evaluation committee, includes a representative o f the design and supervision consultants, who shall also act as “Engineer” for a l l pr ior review contracts.
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Annex 1 : Detailed Description of Project Components Bangladesh: Emergency 2007 Cyclone Recovery and Restoration Project
This project will include six main components:
Component A: Recovery of Agriculture Sector and Improvement Program (US$I 4 million)
1. With severe floods in July/August 2007, followed by Cyclone Sidr in November 2007, the impact on the agriculture sector has been substantial. The 2007 floods damaged over 2 mi l l ion hectares o f crop land and resulted in rice production losses o f over one mi l l ion metric tons (MT). Although these production losses did not drastically affect the availability o f rice, due to adequate reserves o f food grains and increase in rice imports, Cyclone Sidr placed significant additional pressures o n the livelihoods o f already weakened households. In particular, the cyclone hit at a critical crop harvesting time (e.g. over one mi l l ion MT o f aman r ice was lost), k i l led a large number o f livestock, and heavily impacted production in the fisheries sectors. T h i s i s l ikely to have devastating consequences for the rural landless and small and marginal farmers.
2. At the request o f the GOB, the Food and Agnculture Organization o f the United Nations (FAO) fielded a mission to carry out an assessment o f the damage and losses to the agncultural sector and to design a strategy for i ts recovery. The FA0 assessment and appraisal mission (December 3-22, 2007) consisted o f 14 experts, both local and international. The mission visited the cyclone affected areas and, workmg closely with the local governments and communities, prepared an emergency recovery program3. Component A i s developed based o n a proposed FA0 program, including implementation arrangements described in Annex 6. The forestry component o f the FA0 program i s not included in this project component.
3. Although efforts by international a id organizations and the donor community (including a Wor ld Bank assistance o f US$50 mi l l ion to restore livelihoods as part o f the SIPP supplemental credit) will address many o f the immediate needs, additional assistance i s needed to not only restore farmers to pre-cyclone and pre-flood conditions, but also to improve the resilience o f these communities to future disasters. T o synergize with these programs, this Project will target interventions in the crops, livestock and fisheries sub-sectors. These a im to enable farmers to more productively resume their cropping, livestock, fisheries and aquaculture activities and, through demonstrations and participatory training o n improved technologies and practices, contribute to their longer term sustainability. These activities will be targeted in the districts and Upazilas most severely affected by Cyclone Sidr.
4. The objective o f this project component i s to introduce technologies to improve land use during B o n o season (dry season during which area i s not suitable for growing crops due to high salinity levels), introduce crops and technologies to improve resilience o f communities and households in cyclone prone areas to future disasters. T h i s would also help, to a l imited extent, in providing short-term and medium- term and agnculture recovery assistance to Sidr affected communities and thus improve livelihood. However, livelihood restoration in Sidr affected areas i s more broadly addressed through additional financing to the on-going Social Investment Program Project (SPP, US$50 mill ion) and programs by other donors. The objective will be achieved through the following sub-components. A detailed implementation plan for this component i s provided the Operational Manual.
5. Sub-component Al: Support to the crops sub-sector (US$ 4.7 million). In order for the immediate recovery programs to be successful and introduce improved technology, a more comprehensive package, beyond the supply o f seeds and fertilizers, must be considered to protect these
~~ ~ ~
Emergency Livelihood Protection and Rehabilitation Programme Needs Assessment and Appraisal, FAO, January 2008.
27
crops from future floods and cyclones. Additional rehabilitation support i s needed to provide for agnculture and irrigation equipment as well as storage infrastructure, demonstrations o f improved technologies and practices (especially in terms o f y ie ld enhancement and salinity resistance), training and capacity building to enhance the long-term productivity o f the land. Some specific activities may include, but not be l imited to:
6.
Provision o f HYV and saline tolerant seeds and inputs, including fertilizer, through farmer groups and CBOs to support the growing o f aus and boro rice, where feasible; Introduction o f improved seeds and inputs through CBOs to support the growing o f saline tolerant non-rice crops in the kharif-I and rabi cropping seasons, (i.e. legumes, root crops, vegetables, etc) and h i t and fodder trees, where appropriate; Demonstrations on the use o f improved inputs and technologies, together with training to farmers o n integrated crop and pest management for the new crops; Provision o f power tillers, irrigation pumps, threshers, dryers and sprayers through farmer groups/CBOs and their union-based federations, and training o f operators and mechanics o n their operation and maintenance; Support to rural households in provision o f reliable grain and seed storage in the form o f small silos; and Training to CBOs (e.g. Integrated Crop Management and Integrated Pest Management Clubs, Water Users Associations, Common Interest Groups and their union-based federations) o n technical matters (e.g. farm machinery repair, crop diversification and water management), post-harvest management (e.g. seed and grain storage), marketing and business management (including operation and maintenance o f revolving or reserve funds, as wel l as accounting, monitoring and reporting).
Sub-component A2: Support to the fisheries sub-sector (US$ 3.7 million). The current open access o f fisheries has l ed t o significant unplanned development and increasing over fishing. Although the provision o f fisheries equipment (e.g. improved boats, nets and safety equipment) i s a clear immediate need to those who rely o n fisheries production as a source o f livelihoods, a longer term view i s needed to maintain the sustainability o f this resource into perpetuity. The current Government strategy emphasizes the need to introduce certification o f hatcheries together with training for improved seed quality for aquaculture, proper zoning, improved data and stock assessment systems, improved safety, and systems for quality assurance. To support this, specific activities may include:
- Improved knowledge base (e.g. surveys) o n the status o f coastal small-scale fisheries, essential for planning and introduction o f fisheries management measures; Demonstration and introduction o f improved fishing vessels (e.g. improved safety standards, improved standards to handle catches on board, and improved designs for increased mobility) improved nets, and selective life-saving gear (e.g. life-jackets, lights and radios) through union- based CBOs; Training to fishers in improved technologies for capture and handling, safety at sea, and protection o f species; Provision o f aquaculture packages (carp and bagda and galda shnmp seeds, feed, fertilizers and lime) through union-based CBOs to farmers who have rehabilitated fish ponds; Training to fish farmers o n improved aquaculture farm management, s t o c l n g densities, feeding and water quality; and
7. Training to union-based CBOs on technical matters (e.g. group dynamics and quality control), small-scale processing (e.g. preservation and storage o f fish products), produce marketing and business management (including operation and maintenance o f revolving or reserve funds, as wel l as accounting, monitoring and reporting).
-
-
-
-
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8. Sub-component A3: Support to the livestock sub-sector (US$4.2 million). A longer-term view towards improving the overall management and production practices in the livestock sub-sector will lead to improved animal and poultry bird health as well as improved processing, storage, and marketing systems. T h i s wi l l ensure the growth o f the sector and enable poor households to benefit directly and improve their livelihoods. Some specific activities may include:
- Restocking o f goats, sheep, chickens and cows through union-based CBOs on a revolving fund basis; Provision o f livestock feed to beneficiaries o f re-stoclung interventions; Training on avian influenza and other diseases, improved poultry management, including housing and general healthcare o f poultry and feed; Training o n improved goat, sheep and cattle rearing and management; Support t o strengthen cold chain systems for vaccination delivery (e.g. replacement o f damaged equipment, training, and vaccination campaigns); Construction o f improved dairy sheds and provision o f portable poultry sheds through union- based CBOs on a demonstration basis; re-excavation o f damaged ponds and shrimp farms; Development o f fodder multiplication plots at Upazila Livestock Extension Offices and group- based demonstration sites to improve livestock nutrition; and
9. Training to union-based CBOs o n technical matters (e.g. fodder production and disease surveillance), small-scale processing (e.g. handling, preservation, packaging and storage o f poultry, meat and dairy products), produce marketing and business management (including operation and maintenance o f revolving or reserve funds, as wel l as accounting, monitoring and reporting).
- -
- -
-
- -
10. Sub-component A4: Community mobilization and facilitation, and Support to component management (US$ 3.2 million). This sub-component will facilitate the identification and support o f formal and informal farmer/fishers’ groups and production and marketing community-based organizations (CBOs) (some o f which will have been formed under the existing SIPP as described earlier) to best deliver goods and services under this component. Some specific activities may include, but not be l imited to:
- Awareness/communication campaigns on component targeting, group approaches, sub-
- -
component operations, matching contributions, revolving funds, etc.; Participatory needs assessment o f communities f rom the worst affected upazilas; Formation and/or strengthening o f farmerdfishers’ groups (e.g. integrated pest management and integrated crop management clubs, water users associations, farmer field school graduates and common interest groups); Formation and/or strengthening o f union-level federations (e.g. farmers’ associations and producer and marketing CBOs); Mobil ization o f beneficiaries to establish groups, provide matching contributions, adopt improved technologies and maximize the sustained use o f inputs received from the component;
-
-
11. Participatory monitoring and evaluation o f farmers/fishers’ groups and CBOs.Government counterpart agencies lack the capacity to implement such a component over such a relatively short period o f time. Additional financial and technical support i s needed to provide for oversight, procurement, contracting, logistics, financial management, sub-component administration and monitoring and evaluation through a Component Steering Committee, a Component Management and Coordination Unit and two Sub-component Implementation Cells for crops and fisheries and livestock, respectively. This sub-component will also undertake, at the start o f the project, a technical and institutional review o f international and national non-government organizations (NGOs) operating in the affected areas, in order to select implementing partners to FA0 and government agencies under the project. A detailed implementation plan for this component will be provided in the Operations Manual.
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Targeting qf beneficiaries:_Households receiving assistance under this component are those who have been most severely affected by the cyclone (in the selected upazilas), are (or have been until the cyclone struck) engaged in agnculture activities including fisheries and livestock, and are among the poorest in the affected communities. Additional criteria for selection may include: farm size, current membership in formal and informal farmer organizations and other production groups, communities located in remote and the least accessible areas. Project beneficiaries wil l be identified and selected through a process involving community self- identification and selection, with support f rom -and, where necessary, control and verification by- local authorities and service providers. T h i s will be detailed in the Operational Manual that will be provided.
Component B: Reconstruction and Improvement of Multipurpose Shelters (US$40 million).
12. Bangladesh has considerable experience with cyclone shelters since massive construction started after the 1970 cyclone. Cyclone shelters are constructed primarily in coastal areas to provide ‘safe havens and are perhaps the only feasible forms o f protection against cyclones. These shelters have been o f great help in saving lives. Overtime multipurpose cyclone shelters have been constructed in 15 out o f 19 coastal districts. At present, there are about 2,133 multi-purpose cyclone shelters and perhaps 200 refuge sites (called Killas) for livestock during cyclones and storm surges built.4 The existing shelter capacity i s grossly inadequate compared to the requirements.
13. The current design and strategy i s based on a study carried out in 1993 by the Bangladesh University o f Engineering and Technology (BUET) and Bangladesh Institute o f Development Studies (BIDS). The estimate o f the number o f additional shelters required varies significantly f rom 2,000 to 6,000. Also the design, capacity and facilities provided in existing shelters vary significantly. Therefore, there i s a need to update the study, given the changes in economic conditions in the coastal zone and projected population in the future. Also there i s a need for disaster shelters in frequently flooded areas and possibly for areas that are l ikely to suffer f rom earth quakes and other natural calamities. In areas with high population density and economic assets, the shelters should be designed to accommodate at least 1 in 100 year events. Where appropriate shelters should be multipurpose buildings and also connected to Ki l las (livestock shelters). The shelters should have sources o f water supply (storage facilities for water), sanitation facilities and storage for food and supplies needed for survival immediately after the disasters. These shelters should be connected with the communication network for speedy evacuation and delivery o f relief supplies during the disaster. As a matter o f policy, a l l public buildings constructed in the high risk zones should be multi-purpose and o f shelter grade.
14. Whi le studies to update the requirement are being updated, the Government should start a program o f constructing at least 2,000 additional shelters in the high risk zones and to upgrade at least 1,000 existing shelters (by adding Killas, communication and other facilities, etc. and removing other deficiencies observed in the use o f the existing shelters). Given the capacity o f implementation and possible financial outlays, i t would be reasonable to construct about 100 new and upgrade 200 shelters annually over the next five years. The total program cost i s estimated to be US$680 mi l l ion over a fifteen year period, (US$80 mi l l ion for upgrading 1,000 existing shelters and remaining for construction o f about 2,000 new shelters).
15. The Project wi l l support the construction, reconstruction and improvement o f existing shelters in the thirteen districts that were classified as severely and moderately damaged by Cyclone Sidr. The shelters will be designed as multipurpose buildings according to the new standards with capacity to meet
Estimates for available functional cyclone shelters range widely. The DMB estimated in 1991 that there are about 2033. However, LGED estimates that the number i s about 1,868. CEGIS (2004) estimates that there are about 1,639 shelters in the high risk zone.
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the needs o f communities during emergencies and to store rel ief supplies, drinking water, and with proper water and sanitation facilities. The livestock shelter (Killa) wil l be made part o f the disaster shelters. These buildings will be multi-purpose and used as schools or other community building under normal conditions.
16. Subcomponent B1: Construction of new shelters (US$15 million). Construction o f 50 new shelters with an average cost o f about US$300,000 per shelter brings the cost o f this subcomponent to US$15 mill ion. The construction o f shelters will be carried out by LGED as multipurpose buildings for primary schools, community centers o f other community buildings, in full coordination with local government, local communities and education departments. The contracts for construction o f shelters will be awarded in a package o f 5-10 shelters (in the same upazillu or district) thus minimizing supervision costs and the need to attract qualified contractors with adequate capacity.
17. Subcomponent B2: Improvement of existing shelters (US$15 million). This subcomponent will finance repairs and improvement o f existing shelters that are damaged or cannot be used as shelters due to inadequacies. The average cost for about 250 shelters i s US$60,000 per shelter, bringing the total cost o f this component to US$15 mi l l ion. Similarly, the shelters wil l be upgraded by LGED in coordination with other concerned agencies and packaged into larger contracts consisting o f 8-1 5 shelters under each contract.
18. Subcomponent B3: Improvement of communication network to shelters (US$7 million). About US$7 mi l l ion will be allocated for reconstruction o f rural road networks and communication to the shelters constructed (on a as need basis) under the project to make them more accessible. The reconstruction o f road network will be done by LGED.
19. Subcomponent B4: Design and construction supervision of shelters (US$3 million). This wil l cover consulting services for surveys, designs and construction supervision o f multipurpose disaster shelters and al l works covered under subcomponents B1 to B3. T h i s would include facilitating consultations with the local communities in identifying sites, needs and suitable design o f the shelter as wel l as coordination with other government agencies and stakeholders, such as the Ministry o f Education, local governments, and upuzilla and union level governments. As part o f the designs o f the construction activities, social assessments (SA) and environmental assessments (EA) will be required. The consultants will prepare design report for a package o f shelters that will be included in a contract. In addition to the design reports, they will also prepare Social Management Plans (SMP), Resettlement Act ion Plans (RAP) and Environmental Management Plans (EMP). The SMP/RAP and EMP will be reviewed and cleared by the Monitoring and Evaluation and SMP/EMP consultants. The consultants will also prepare the bidding documents, support the government in procurement o f works and construction supervision and contract management. The consultants will also draft terms o f reference, request for procurement package and help the Government to recruit consulting services required for fo l low up project preparation for cyclone shelters covering feasibility, detailed designs, and construction supervision, as defined in subcomponent D3 below.
Component C: Rehabilitation of Coastal Embankments (USUO million)
20. There i s clear evidence that embankments, though inadequate in some places, provided an effective buffer during the tidal surge due to Cyclone Sidr. Damages and losses are much lower and lives were saved, where embankments were present. Some embankments did not fa i l even when they were overtopped by the surge. The existing network i s large with more than 6,000 km o f coastal embankments and over 130 polders, many o f them constructed more than 30 years ago. However, their effectiveness has been compromised by poor maintenance and inadequate management. With repeated storms, coastal embankments have weakened and are in need o f restoration and upgrading.
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A systematic approach i s needed to upgrade the coastal embankments to provide protection against future surges due to storms. Designs should protect against an appropriate return period and should be based on sound local r isk and vulnerability assessments. An effective asset management plan will be critical. In addition, for some structures at the crest level o f the embankment should simply be raised and slopes and material o f construction improved. Moreover, the embankment improvement program has to be accompanied with a forestation program, particularly o n the sea side. Forestation was shown to significantly reduce the damaging effects due to storm surges during cyclone Sidr. Whi le a systematic approach would be undertaken under the long-term DRR, it i s essential to repair the damages to the embankment system by Sidr as the area i s exposed to surges and flooding even due to high tied and relatively l o w intensity storms leaving population extremely vulnerable. This subcomponent will support the highest priority repairdreconstruction identified under the JDLNA.
21. Subcomponent C1: Rehabilitation o f coastal embankment (US$18 million). The Bangladesh Water Development Board (BWDB) will develop an emergency program for carrying out repairs to the coastal embankments/sections damaged during the 2007 cyclone that need immediate repairs. Over 100 km o f embankments will be repaired under this component at a unit cost o f approximately $150,000 per km. The component will support rehabilitatiordimprovement to the coastal embankments that were damaged due to the surge caused by the Sidr Cyclone. The repair works will be designed with improved standards so that protection can be provided in these sections in fuh re for storms with equivalent strengths. The embankments will be designed with milder slopes o n the seaside which will be covered with forestation. Where possible, roads would be constructed o n the embankments in order to provide access and improve the maintenance program. Priority will be given to rehabilitate sections which do not involve any social issues such as land acquisition and environment issues. T h i s subcomponent will also support forestation along these embankments for improved protection o f these assets. The communities will be involved in the implementation o f the forestation program and after care o f these assets.
22. Subcomponent C2: Design and construction supervision of coastal embankments (US$2 million). This would cover consulting services for surveys, designs and construction supervision o f rehabilitatiodimprovement o f coastal embankments. T h i s would include facilitating consultations with the local communities in identifying sites, needs and suitable design o f the shelter as wel l as with the other government agencies which stakeholders such as education ministry, local government, upazilla and union level government. As part o f the designs o f the construction activities, social assessments (SA) and environmental assessments (EA) will be required. The consultants will prepare a design report for a package o f embankments that will be included in a contract. In addition to the design reports, they will also prepare Social Management Plans (SMP), Resettlement Act ion Plans (RAP) and Environmental Management Plans (EMP). The S M P W and EMP will be reviewed and cleared by the Monitoring and Evaluation and SMP/EMP consultants. The consultants will also prepare the bidding documents, support the government in procurement o f works and construction supervision and contract management.
Component D: Long-Term Disaster Risk Management Program (US$l6 million).
23. This component will support preparation and implementation startup o f the long-term disaster risk reduction (DRR) program. It wi l l primarily consist o f implementation o f non-structural measures and institutional strengthening for disaster management and preparation and designs o f future structural measures proposed under the long-term disaster risk management program. This will have the fol lowing sub-components:
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24. Subcomponent D1: Disaster risk mitigation and reduction (US$8 million). The focus o f this subcomponent will be capacity building o f the Disaster Management Bureau (DMB), support for multi-hazard r i s k vulnerability assessment, modeling and enhancing emergency preparedness.
25. Subcomponent D1.l: Capacity building of the Disaster Management Bureau (DMB) (US$ 2 million). This subcomponent will support key capacity building activities for the DMB, in accordance with the main strategic priority o f ‘professionalizing disaster management’ la id out under the NDPM plan (2007-15). Whi le an array o f capacity building activities are underway or planned by other development partners and the Comprehensive Disaster Management Program (CDMP), this subcomponent will focus on:
(a) Enhancement o f DMB’s capacity for designing, standardizing and implementing a post-disaster damage and needs assessment (DNA), across al l concerned government departments, and at various administrative levels, down to the district and upazilla. This subcomponent will finance the: (i) hiring o f an international DNA expert and contracted staff, and the establishment o f a DNA cell within DMB; (ii) international training o f key DMB and concerned staff f rom other departments, as master trainers; and (iii) design and implementation o f a further master training program at the national level and subsequent downstream programs for DNA training down to various concerned departments at the district and upazilla level;
(b) Creating and strengthening a multi-hazard and vulnerability mapping and information systems cell within DMB, staffed with one international expert and support staff, to scope out and coordinate such hazard mapping exercises at a national and sub-national level and to manage databasehnformation systems (e.g. GIs, f ie ld data, surveys);
26. Subcomponent D1.2: Supporting detailed, national level multi- hazard risk and vulnerability assessment, modeling and mapping (US$3.0 million). In accordance with the Strategic Pil lar 1 o f the country disaster management strategy for ‘defining and redefining the r i s k environment’ this subcomponent will support the carrying out o f a national level multi-hazard risk and vulnerability assessment, modeling and mapping exercise. This exercise will build upon existing local assessments (e.g. WFP assessment for flood-prone areas), identify existing uncertainties and constraints in these assessments (e.g. poor digital elevation models), and consider future r isks (e.g. climate change drivers). The results o f this exercise shall greatly enhance understanding o f potential future economic losses resulting f rom a range o f natural disasters, and shall help the country in reviewing physical, human, and financial exposures; determining levels o f acceptable risks and those to be mitigated, and; updating emergency plans/procedures and developing appropriate capacity building programs.
27. The assessment shall develop national-level and administratively disaggregated modules/models for: (i) spatial and temporal mapping o f a l l hazards and development o f probabilistic future models; (ii) asset and population exposure; (iii) vulnerability o f different asset types; and (iv) loss analysis for estimating monetary losses for each division o f the geographical area covered.
28. Subcomponent D 1.3: Strengthening and enhancing emergency preparedness in 12 severely cyclone affected districts and upazillas (US$ 3 million). This subcomponent will support local level capacity building activities for strengthening local disaster management and emergency preparedness. Activities to be financed will include: (i) supporting and building the capacity o f the various sub-national disaster management committees in selected districts, to develop and implement disaster management plans at various levels, and corresponding downstream training o f the CPP volunteers force; (ii) supporting local emergency communications facilities at the upuzilla and union levels through the provision o f modern, disruption-free communication equipment to key disaster management focal points; (iii) technical assistance to upazilla level Disaster Management Committees (DMC) in developing
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standard evacuation protocols and plans to guide local populations in emergency periods; and (iv)provision o f search and rescue equipment to CPP volunteers and/or upazilla DMCs. The above project activities shall be centrally coordinated by the District and upazilla district management committees, employing the services o f consultants and partner NGOs, as appropriate.
29. Subcomponent D2: Preparation of future projects for River Bank Improvement, Coastal Embankment Improvement (US$6.2 million). Under this subcomponent, preparation studies will be carried out for the f i rs t phase o f the JDLNA identified long-term disaster management program. This includes necessary technical studies for: (D2.1) Rwer Bank Improvement Program (RBIP) that would focus on reconstruction o f Brahmaputra Right Bank Embankment (BRE) starting f rom Sirajganj town upwards Kazipur with a total investment cost o f US$300 mi l l ion and tender design bidding documents for f irst package for RBIP, covering at least the towns o f Sirajganj and Kazipur; and (D2.2) Coastal Embankment Improvement Program (CEIP) that would focus rehabilitation, reconstruction and improvement o f coastal embankments. This would cover feasibility studies, surveys, for the whole investment (about US$300 mill ion) and tender designs and bidding documents for f i rs t package consisting o f works for about US$lOO mill ion.
30. The project preparation will be carried out through two separate consulting services one for RBIP and one for CEIP. These would cover feasibility studies, surveys, a l l engineering studies, investigations, socio-economic analysis, social assessment, environmental assessment and preparation o f social management implementation framework (SMIF) as wel l as Resettlement Act ion Plan (RAP), environmental management framework (EMF) and environmental management p lan (EMP) as necessary for project implementation. T h i s will also cover the preparation o f the project implementation plan, financing plan and GOB DPP.
31. Subcomponent D3: Preparation of future projects for disaster shelters and upgrading the rural road network (US$1.8 million). To support the activities identified in the long-term disaster r i sks management program, preparation studies will be carried out for: (i) construction o f new disaster shelters with an investment cost o f about U S 3 0 0 mill ion; and (ii) upgrading o f rural road network in the disaster prone areas. This would cover feasibility studies, surveys, for the whole investment and tender designs and bidding documents for f i rs t package consisting o f works for about US$lOO mi l l ion. The component will finance a l l engineering studies, surveys, investigations, socio-economic studies social assessment, environmental assessment and preparation o f social management implementation framework (SMIF) as well as Resettlement Act ion Plan, environmental management framework (EMF) and environmental management plan (EMP) as necessary for project implementation. T h i s will also cover the preparation o f the project implementation plan, financing plan and GOB DPP.
Component E: Monitoring and Evaluation of Project Impact (US$3.0 Million).
32. The monitoring and evaluation (M&E) activities would provide continuous feedback to the Government, Project Steering Committee (PSC), and implementing agencies on the project’s performance and impact o f i t s various components, so that corrective actions could be undertaken in a timely manner. They will also supervise implementation o f the overall EMF and S W F , careful review and monitoring o f sub-project specific social and environmental management plans and impact assessments, and supervision of their implementation. The M&E activities are l ikely to cover, but not l imi ted to: (i) the impact o f the disaster risk reduction measures on the communities at various levels, change in the level o f protection, resilience to cope and manage the disasters; (ii) impact on various productive activities, including crops, livestock, fisheries, shrimp, trade and industry, and impact on health and environment; (iii) environmental impact o f construction activities in the project area in particular on any wetlands, ecologically important sites, population and livestock; (iv) any acquisition o f public and private land and assets, agreements reached and arrangement made for acquisition o f assets; and (v) socio-economic impacts and the impact
34
on the level o f employment, livelihood and household incomes in the project area; estimation o f the project’s overall benefits and economic rate o f returns etc. M&E will be carried out using latest technology such as satellite imagery and GIS systems, where necessary. T h i s consultancy will also help to reinforce transparency and governance in the Project.
Component F: Project Management, Technical Assistance, Strategic Studies and Training, and Emergency Support for Future Disasters (US$14 million)
33. Project management, technical assistance, strategic studies and training (US%6 million). This subcomponent will support the Government in implementing the project, and in coordinating a l l project related activities, strategic studies, technical assistance and training. I t will include: (Fl) support for the operation o f the Project Monitoring and Coordination (PCMU) within the Ministry o f Planning (US$3 million); (F2) establishment o f disaster management response FundFaci l i ty (USS0.3 million). T h i s will support consulting services, studies and other related costs for establishing a financing facil i ty to fund recovery f rom disasters in Bangladesh; (F3) strategic studies and pi lot projects which may be identified during the project implementation (US$1.2 million), such as updating the strategy for disaster shelters and studies for improving water management in the coastal zone due to climate change; and (F4) technical assistance and training in such areas as disaster management and preparedness, construction, contract management, financial management, preparation o f environmental and social assessments, and preparation o f EMPs and RAPS (US$1.5 million). This wil l involve financing o f incremental staff salaries, operating expenditures, consulting services, equipment and software;
34. T h i s subcomponent will provide support for emergency recovery f rom a future disaster that may occur during the implementation period o f the project. The detailed activities will depend upon the nature and location o f the disaster and priority needs.
Emergency support for future disasters during implementation (US%8 million).
Targeting and Monitoring of Project Interventions
35. The Project targets some o f the worst affected districts. It specially targets landless households and small, resource-poor farmers in rural communities o f 13 upazilas in Bagerhat, Barguna, Barisal, Jhalokathi, Patuakhali and Pirojpur Districts for the implementation o f Project Component A. This geographic targeting would provide the primary basis for targeting the activities planned under Components B and C (rehabilitation o f coastal embankments and construction and rehabilitation o f cyclone shelters). While, Components B and C interventions would benefit the entire community o f the target villages, the interventions planned under Component A require careful targeting to ensure that the project would reach the most affected people and those who require immediate support to recover livelihoods and agnculture activities in a sustainable manner. The primary target group and beneficiaries for Component A include: landless households; small and marginal farmers; small-scale livestock owners who have been most severely affected by the cyclone (in the selected upazilas), are (or have been, until the cyclone struck) engaged in apcu l tu re activities including fisheries and livestock, and are among the poorest in the affected communities. Assistance under Component A will be further targeted on households who have not or are not receiving any similar assistance f rom other previous and ongoing projects or programs providing the same type o f l ivelihood rehabilitation and agriculture support in the cyclone-affected areas. Details o f this targeting will be provided in the agreed Operational Manual Independent monitoring will also be carried out by a group o f consultants (M&E Consultants under component E) who wil l track the project interventions and their impact.
35
Community Participation in Project
36. In order to ensure effective targeting for Component A, project beneficiaries are identified and selected through a process involving community self- identification and selection, with support f rom - and, where necessary, control and verification by- local authorities (e.g. union chairmen) and service providers, including Departments o f Agnculture Extension, Fisheries and Livestock (DAE/DOF/DLS) extensions, non-governmental (NGOs) and project staff based in the f ie ld (Sub-component Implementation Cells). Detailed implementation plan i s provided in the component Operational Manual. For the other components, local communities will actively participate in consultations with the relevant staff o f the project implementing agencies o n the identification o f sites, needs, and suitable designs for the rehabilitation and reconstruction o f disaster r i sk reduction systems undertaken as part o f this project. They will be involved in every stage o f the Project andor scheme implementation, including planning, and deciding site specific designs and implementation issues. The preferences, priorities and concerns o f those potential beneficiaries will be fully integrated into the final designs and implementation schedules o f project interventions. Any technical assistance should be community and needs-based and take into account the special circumstances o f affected people in this particular disaster situation. The contribution f rom beneficiaries (cash andor kind) towards project interventions as wel l as the introduction o f newhmproved production, processing and marketing technologies through production/farmer groups should ensure the full participation o f beneficiaries and the full decentralization, democratization and transparency o f project interventions.
37. Provisions have been included under Component A o f the project to carry out awareness/communication campaign to disseminate information o n project activities, beneficiary targeting and selection criteria and processes; community mobilization and facilitation, including in beneficiary identification and selection; assessment o f needs and interests in terms o f choice o f crops, adoption o f improved technologies and practices, etc.; and delivery o f program goods and services to beneficiaries (farmer groups or individuals; some o f which may be identified and formed through the existing SIPP). Services o f international and national NGOs would be obtained to assist community consultations, targeting and delivering the project inputs under Component A who will be selected through a technical and institutional review o f NGOs already operating or able to operate in the affected areas.
38. The rehabilitatiodconstruction activities o f the project wil l generate employment for people in the cyclone affected areas and will help in reviving the local economies, generating employment and addressing rural poverty issues which have become very acute after the cyclone. Moreover, many o f the activities (including, for example, forestation along embankments, simple repair and construction works, and earth work for construction o f ‘ ‘ l l l a ” livestock shelters) will be carried out by communities through community-based contracts. The activities under Component A, besides the delivery o f urgently needed production inputs and implements, would provide new crops and seed varieties and extension practices appropriate to specific agro-climatic and soil/drainage conditions o f the project area. The Project will also introduce new livestock and aquaculture production and management techniques and practices to the affected communities to be able to improve production and productivity and incomes in a progressive manner.
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Annex 2: Results Framework and Monitoring Bangladesh: Emergency 2007 Cyclone Recovery and Restoration Project
(a) Results Framework
0 To s u v ~ o r t Government o f Bangiahesh efforts to facilitate recovery f r o m the damage to l ivelihoods and infrastructure caused by Cyclone Sidr and to build long- term preparedness through strengthened disaster risk management.
Intermediate Output One Der ComDonent
Component A: Recovery of Agriculture Sector and Improvement Program.
Short-term and medium-term livelihood and agriculture (crop, livestock and fishery) recovery assistance provided and sustainable improvements to agricultural practices in the project area introduced.
Sub-comvonent A. 1: Community Mobilization and Facilitation.
Communities mobilized, facilitated, and strengthened to improve agricultural production.
Sub-component A.2: Support to Crop Sub-sector
Outcome Indicators Number o f vulnerable population benefitted f r o m reduced r isk due to project interventions.
Agricultural area benefitted f r o m reduced r isks from cyclone damage and saline water inundation.
Improved capacity and preparedness for disaster risk management.
Intermediate Output Indicators
Number o f marginal farmers, landless livestock owners, and fishers severely affected by the cyclone adopting improved technologies.
Number o f agricultural service providers (DAE, DoF, DLS, NGOs, CBOs, etc) able to promote improved technologies
Number o f village farmers groups (FGs; i.e. I P M A C M Clubs, CIGs, WUAs, etc) established and strengthened
Use of Outcome Information Government o f Bangladesh wil l use information to measure progress and impact o f project o n cyclone damage rehabilitation and recovery.
The information wil l be used by the Government to improve design o f ongoing and future public investments programs for disaster r isk management and mitigation.
The information wil l be used by the W o r l d Bank and the Government project teams at MTR (in PY2) to make suitable adjustments to the sub components, implementation arrangements, and strategy.
Use of Intermediate Output Monitoring
PSC and W o r l d Bank to measure overall effectiveness o f agriculture sector recovery interventions
PSC and Component Coordination Committee t o take corrective actions to the project strategy and implementation approach, if necessary. . -
W o r l d Bank and the Government project teams to make suitable adjustments to the sub components, implementation arrangements, and strategy at regular implementation review missions and at MTR (due in PY2).
Sub-comvonents, A.l, A.2. A.3 and A.4:
In addition to the use o f output monitoring for the purposes mentioned above in this column, fo l lowing are the other uses.
T o review the transparency and appropriateness o f targeting and selection o f beneficiaries and take corrective actions, if necessary.
37
Intermediate Output One per Component
Crops sub-sector recovered with improved resilience to future disasters.
I
Sub-component A.3: Support to Fisheries Sub-sector
Fisheries sub-sector recovered with improved resilience to future disasters
Sub-component A.4: Support to Livestock Sub-sector
Livestock sub-sector recovered with greater resilience to future disasters
Sub-component AS: S U R R O ~ ~ to component manaEement
The sub- components implemented and coordinated efficiently and effectively leading to delivery o f planned outputs and achievement o f component objective.
Intermediate Output Indicators
Number o f crop agriculture farmers using new farm machinery, hand tools and processing equipment distributed to FGs.
Number of farmers received training and adopting new agriculture technologies disseminated by the project.
Number o f fishers using fisheries equipment (e.g. boats, nets and safety equipment) distributed to groups o f fishers.
Number of fishers adopting improved aquaculture practices. -
Number o f fishers received training and capacity building o n improved techniques.
Number o f livestock farmers received and adopting improved goats, sheep, cows and poultry.
Number o f livestock farmers adopting improved dairy production facilities (cattle sheds and portable poultry sheds .
Number o f livestock owners received training and capacity building o n improved techniques.
Cumulative physical and disbursement progress do not fal l be low 80 percent o f the cumulative targets at any given time.
Use ofIntermediate Output Monitoring
T o determine appropriateness o f inputs and Technologies.
T o review levels o f adoption o f marginal farmers and landless farmersifishers to improved technologies demonstrated.
T o review levels o f interaction and development o f linkages between the Component and other donor-fimded l ivel ihood recovery projects in Cyclone Sidr-affected areas.
W o r l d Bank and the Government project teams to make suitable adjustments to the sub components, implementation arrangements, and strategy at regular implementation review missions and at MTR (due in PY2).
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Intermediate Output One per Component
Component B: Reconstruction and lmprovement of Multipurpose Shelters
Increased protection for the vulnerable population and livestock in the cyclone prone areas during h t u r e disasters.
Component C: Rehabilitation of Coastal Embankments
Increased prevention o f saline inundation under normal weather and sustained crop production made possible by reducing cyclone damage.
Component D: Disaster Risk Reduction and Management Program
Disaster r isk mit igation and reduction abi l i ty o f the Disaster Management Bureau strengthened and enhanced.
Future national projects to reduce disaster risk and damage prepared for public investments.
Component E: Monitoring and Evaluation of Project Impact
Project outputs and outcomes are measured and documented to best satisfaction o f the PCU.
Intermediate Output Indicators
Numbers o f new ly constructed shelters with improved design standards and connectivity (such as access roads) with the community.
Numbers o f shelters repaired and improved upon with improved connectivity (such as access roads) with the community;
Length o f coastal embankments including appurtenant structures rehabilitated and upgraded with improved design standards, and vegetative cover.
Multi-hazard mapping and vulnerabil ity cel l created in DMB and detailed multi-hazard models are used to generate maps.
Preparatory studies for new disaster shelters and upgrading o f rural road network completed.
Preparation o f national RBIP, and CEIP completed.
Baseline level monitoring indicators established at sample and control areas;
Consultants are mobil ized and take o n responsibilities as described.
Use of Intermediate Output Monitoring
To monitor progress o f component B implementation and measure effectiveness o f new shelter reconstruction
W o r l d Bank and the Government project teams to make suitable adjustments to the sub components, implementation arrangements, and strategy at regular implementation review missions and at MTR (due in PY2).
To monitor progress o f component C implementation and measure effectiveness o f shelter construction. And improvement.
W o r l d Bank and the Government project teams to make suitable adjustments to the sub components, implementation arrangements, and strategy at regular implementation review missions and at MTR (due in PY2l
To measure effectiveness o f strengthened disaster risk reduction and management and improvement components
Monitoring progress o f component D implementation
To measure overall progress, outputs and impacts o f the project as we l l as compliance with project’s safeguard and fiduciary compliance.
The information wil l be used by the Government to improve design o f ongoing and future public investments programs for disaster risk management and mitigation.
The information will be used by the Wor ld Bank and the Government project teams at MTR (in PY2) to make suitable
39
Intermediate Output One per Component
Component F: Project Management, Technical Assistance, Strategic Studies and Training, and Emergency Support for Future Disasters
Project i s we l l managed coordinated among a l l implementing agencies and partners and targets/outcomes achieved as planned.
Intermediate Output Indicators
Cumulative physical and disbursement progress do not fa l l be low 80 percent o f the cumulative targets at any given t ime
Financing and implementation arrangements for disaster f ind identif ied and established.
Use of Intermediate Output Monitoring
adjustments to the sub components, implementation arrangements, and strategy T o Moni tor the implementation o f the overall project, impacts, and make adjustments as needed for meeting development objectives.
W o r l d Bank and the Government project teams to make suitable adjustments to the sub components, implementation arrangements, and strategy at regular implementation review missions and at MTR (due in PY2).
40
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Annex 3: Summary o f Estimated Project Costs and Financing Arrangements Bangladesh: Emergency 2007 Cyclone Recovery and Restoration Project
Project Components A. Support for Agriculture Recovery AI. Cropping Sector A2. Livestock Sector A3. Fisheries
Sub-Total A B. Reconstruction and Improvement of Multi-purpose Disaster Shelters BI. Construction of new Shelters B2. Improvement of Existing Shelters B3. Improvement of communicationhoads network to shelters B4. Design, construction supervision, contract management
Sub-Total B C. Rehabilitation and Improvement of Coastal Embankments C1. Reconstruction of Coastal Embankments C2. Design, construction supervision
Sub-Total C D. Project preparation for Disaster Risk Reduction
dissemination system.
Improvement programs.
D1. Improving Disaster Preparedness, forecasting, warning and
D2. Preparation of River Bank and Costal Embankment
D3. Preparation of Cyclone Shelters and Roads Program Sub-Total D
E. Project Monitoring and Evaluation of ECRRP F. Project Management, coordination & Technical Assistance FI . Project Management Support F2. Establishment of Disaster Response Fund F3. Strategic Studies F4. Technical Assistance and Financial Audit F5. Emergency support for Future disasters
Sub-Total E Total
Total cost
6.0 5.0 5.0
16.0
15.0 15.0 7.0 3.0
40.0
18.0 2.0
20.0
8.0
6.2
1.8 16.0 3.0
3.0 0.3 1.2 1.5 8.0
14.0 109.0
IDA
6.0 5.0 5.0
16.0
15.0 15.0 7.0 3.0
40.0
18.0 2.0
20.0
8.0
6.2
1.8 16.0 3.0
3.0 0.3 1.2 1.5 8.0
14.0 109.0
Other Total
6.0 5.0 5.0
16.0
15.0 15.0 7.0
40.0
18.0 2.0
20.0
8.0
6.2
1.8 16.0 3.0
3.0 0.3 1.2 1.5 8.0
14.0 109.0
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Annex 4: Financial Management and Disbursement Arrangements Bangladesh: Emergency 2007 Cyclone Recovery and Restoration Project
1. A financial management assessment was carried out to evaluate the overall financial management environment prevailing in the country and within the entities that wil l implement the project. More specifically it aimed at assessing the financial management r isks underlying the project, the capacities o f the implementing entities, the FM systems in place and to identify the financial management arrangements under the proposed project that would need to be in place to meet the Bank’s fiduciary requirements in accordance with i t s OP/BP 10.02
2. Country Financial Management Environment: Over the last several years, GOB has been addressing key weaknesses in financial management identified in the Country Financial Accountability Assessment (CFAA), through a series o f reform programs supported by DFID, the Bank, and a few other development partners. However, due to the fi-agmented approach to Public Financial Management (PFM) reforms, improvement on the PFM systems across the government agencies and institutions, has been uneven . The jo int Bank, DFID, and GOB Review of Institutional Arrangements for Public Expenditure, Financial Management, and Procurement completed in June 2005 concluded that Bangladesh’s public expenditure institutions need to be significantly strengthened. The review that was carried out under the Public Expenditure and Financial Accountability (PEFA) Performance Measurement Framework also confirmed that the links in the public financial accountability chain in Bangladesh continue to be weak as reflected in the lack o f accounting information in line ministries, delays in the publication o f audit reports, unsatisfactory quality o f the external audit function, and ineffective Parliamentary oversight o f the whole budgetary process.
3. PFM Reforms: GOB has taken several steps to improve i t s public financial management and procurement systems and while the overall trajectory o f change has also been positive, the pace o f progress has been slower than anticipated. The recently approved GOB document on PFM Vision & Medium Term Rolling Action Plan that develops time-bound reform actions and remedial measures are designed to improve financial management and accountability. Development partners have recently agreed with the Government to provide implementation support to the PFM reforms through a Multi Donor Trust Fund to be administered by the Bank. Efforts are also underway to tailor and apply the PFM measurement framework at the sector level. Reform actions proposed include measures aimed at strengthening the l ine ministry financial management function. The Ministry o f Planning, the Ministry o f Agnculture (MOA), the Ministry o f Fisheries and Livestock (MoFL),, the Ministry o f Food and Disaster Management(MoFDM), the Ministry o f Water Resources (MoWR), and the Ministry o f Local Government, Cooperatives and Rural Development (MLGCRD) and their attached departments that would implement the project would be beneficiaries o f strengthened FM arrangements.
4. Despite the overall weak country financial management environment, fiduciary risk in donor- funded projects has been greatly minimized due to the government pol icy o f stipulating additional implementation arrangements in those projects.
Financial Management Assessment of Implementing Agencies
5. As part o f project appraisal, the Bank carried out a financial management assessment o f the implementing entities, identified the strengths and weaknesses therein and the actions required to address the weaknesses to establish adequate FM arrangements for project implementation. A br ief account o f the financial management capacities o f the different implementing entities i s provided below:
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6. Planning Commission (PC): The Planning Commission under the Ministry o f Planning has not implemented any Bank funded project. It i s preparing for implementing a component o f a multi donors funded PFM Improvement Project to be administered by the Bank. PC will take up the overall project coordination role in addition to implementing a part o f the project. I t will also perform as the focal point on the administration o f the implementation arrangement o f the contract / MOU with FAO. Given the responsibility o f consolidating the interim financial reports and annual audited financial statements and also the financial management o f the components it would be implementing, the PCMU under the PC will need to have a qualified accountant with adequate experience o f implementing Bank fimded projects. The staffing plan has been agreed accordingly.
Local Government Engineering Department
7. The sub-components o n disaster shelters will be implemented by LGED, an attached department o f the Local Government Div is ion o f the MLGCRD. LGED has the relevant expertise and experience in implementing Bank-funded multiple projects, a few o f which are ongoing (including the recent 2007 emergency flood project). It has extensive exposure to IDA disbursement procedures and financial management requirements. LGED, however, has not yet been able to fully mainstream financial management capacity. Currently, LGED does not have an integrated financial management organization; i t s financial management i s segmented and ring fenced for each project and revenue budget unit. LGED’s cash basis accounting system, which follows a single entry book-keeping , does not include any statement o f assets and liabilities. LGED, l ike most o f the government departments, neither prepares any interim financial statements to facilitate monitoring o f budget implementation nor produces an entity annual financial statement to show i t s overall financial position. Under the Bank funded Rural Transport Improvement Project, LGED has undertaken an Institutional Strengthening Act ion Plan (ISAP) that includes some initiatives on strengthening financial management organization and practices
8. A recent study by a firm o f consultants undertaken as part o f ISAP revealed irregularities and lack o f control in recording o f revenue earning activities and collection, use and deposit o f the proceeds and reporting thereon and absence o f adequate control in opening and maintaining bank accounts. The study also revealed that the financial management o f LGED and i t s project suffers due to shortage o f managerial positions in the financial hierarchy and LGED’s accounting positions mainly consist o f Accountants and Accounts Assistants who are actually accounting technicians placed hierarchically at levels that are two and five steps respectively below the level o f the Sub- Assistant Engineer, the lowest engineering position. Thus, with their l o w hierarchical position and lack o f ski l ls , they have litt le influence and authority in the decision malung process for bringing efficiency to financial management functions. The study underscored that to ensure transparency ,accountability, good governance and accuracy in financial transactions, the payment authority should be separate f rom spending authority and the sections receiving and depositing o f payment for services should be separate f rom the section providing the service, but in LGED the donors fund for the projects are spent and paid by the same authority and the section that provides the service also receives the fees and charges and i s also responsible for recording and banking o f such receipts. Echoing the recommendations o f a previous study- 1998 M A N C A P S Report, the recent study also recommended for LGED to introduce professionalism and discipline in financial management and to establish a central finance and accounting unit headed by a Chartered Accountant.
9. The Bank team reviewed the report on the study , provided comments and have been debating an discussing on the recommendations that LGED was not very keen to implement for the reasons as they said “things beyond LGED’s purview and not possible to be implemented in the short term.” It was then agreed to be kept in abeyance pending revisiting under an Operational Risk Assessment (ORA) o f LGED
47
that the Bank i s currently undertakmg. The ORA managed by the Bank and funded by the DFID seeks to analyze the systemic deficiencies and weaknesses in effective project preparation, design and implementation processes in LGED, to understand LGED’s sectoral governance and polit ical economy issues and to make recommendations for the benefit o f the Government o f Bangladesh (GOB), the sector as a whole and the development partners involved. The ORA aims to establish the following:
(a) Available measures to quickly and effectively minimize the major operational and development effectiveness risks identified in LGED;
(b) The fiduciary soundness o f the LGED management structure currently relevant to meeting i ts core responsibilities;
(c) Ways to control weaknesses in management o f projects, assets and other resources that are the main concerns in the possibility o f funds leakages
10. The Uni form Financial Management Systems Software (UFMS) developed in house and used at LGED headquarters caters to a l imited number o f donor aided projects and Government-funds projects and the financial information provided by the system i s not consolidated with the information f rom projects which do not use U F M S to provide a global picture o f the use o f financial resources by LGED. The system i s not used by either o f the bank funded ongoing projects because it lacks the capability to produce FMRs and to take care o f f ixed assets management. The Bank asked for a review o f i t s security features and technical capabilities to meet the needs o f LGED’s recurrent and project transactions by a team o f financial management and IT experts. The ORA i s expected to come up with such findings and the Project would look into the relevance o f the U F M S for i t s requirements.
1 1. However, the FM strengthening initiatives through ISAP or ORA findings are unlikely to bring in significant short term results that could be useful at the onset o f implementation o f the project as the LGED is unlikely to be malung a fast decision, the l ine ministry’s and ministry o f finance’s concurrence and agreement to recommended actions would depend much on the upcoming polit ical situation o f the country. As such, the Bank will institute the necessary measures to mitigate the fiduciary r i sks arising f rom the weaknesses o f entity’s internal control environment and FM capacities through Project FM arrangement and FM Act ion Plan.
Bangladesh Water Development Board
12. The sub-components o n rehabilitation and improvement o f costal and river embankments will be implemented by the BWDB, an autonomous agency under MWoR. BWDB will have contractual arrangements with the Department o f Forest to implement the forestation sub-components along the embankments.
13. BWDB has a robust FM organization and wel l documented financial regulations and procedures and internal control measures in financial management (FM). BWDB has the experience o f implementing a number o f Bank and other donor-financed projects and i s currently implementing the Bank-funded Water Management Improvement Project (WMIP). BWDB has adequate internal control arrangements in place, putting financial management responsibilities independent o f operating function. BWDB Accounting System has been modernized under two CIDA-assisted projects. I t has been operating a computerized accounting system for the last seven years in recording, processing and report generating and submitting computerized monthly accounts to the l ine ministry by the 7” day o f the following month. BWDB prepares i ts annual financial statement that i s audited by independent auditors but the completion o f the audit i s often delayed due to delay in obtaining C&AG’s ‘no objection’ in appointing the auditor. BWDB has 25 Regional Accounting Centers (RAC) across the country to handle payments for
48
procurement o f goods, works and services and to perform the related accounting and other services. BWDB will be able to provide the required financial management support for implementation o f the project through i t s RACs requiring n o ring fenced arrangement. BWDB has also an Internal Audit Directorate but shortage o f manpower and lack o f appropriate training and manual in the audit directorate i s affecting internal audit performance.
Food and Agriculture Organization (FAO) as the implementing Partner
14. The one department under the Ministry o f Agriculture (Department o f Agriculture Extension) and two departments under the Ministry o f Fisheries and Livestock (the Department o f Livestock Services and the Department o f Fisheries) will implement the three agriculture recovery sub-components based o n their areas o f specialization. FA0 will implement the activities in close coordination with the three agencies stated above. FA0 will enter into a contracthlemorandum o f Understanding with the Government for implementing the Agnculture Recovery component o f the project. FA0 will carry out a l l procurement related to this component. FA0 will claim payments o n the basis o f implementation progress / milestone as would be defined in the contractflMOU. The P C M U will settle FAO’s claims through submitting Direct Payment requests to the Bank in favour o f FAO’s designated bank account, o n the basis o f certification o f implementation progress by each agency for respective part o f the component.
The Disaster Management Bureau
15. The Disaster Management Bureau under the Ministry o f Food and Disaster Management has not implemented any Bank-funded project. However i t has been implementing a number o f the Government funded projects and a UNDP funded project. The FM staff involved in the implementation o f the UNDP funded project will be available to carry out the FM activities under the project until an Accounts Officer funded by the project i s appointed after the project effectiveness.
Risk Analysis and Mitigation
16. The in i t ia l overall project FM r i s k i s rated as “High”. This i s mainly due to the fol lowing issues: Planning Commission (PC) and the Disaster Management Bureau (DMB) having less experience in implementing Bank funded projects, weak FM capacities o f PC, Planning Commission, LGED and DMB; f low o f funds to multiple agencies; weaknesses in internal controls; lack o f computerized project accounting systems to ensure timeliness and accuracy o f financial reporting; slow decision-making with appointing or replacing FM staff; inabil ity to sustain FM capacity gained through implementing past Bank funded projects in LGED; the r i s k that audit reports do not capture the accountability and corruption issues adequately; the culture o f arbitrary slashing o f the project’s budgetary allocations; delays in releasing GOB’S share o f project funds; and delays occurring in obtaining authorization for use o f Designated Accounts. In expectation o f the implementing agencies’ commitment and the agreement to be reached on identified mitigating measures with a time bound FM Act ion Plan; the residual risks may be reduced for some risk elements as shown in the following table. The mitigation measures will effectively reduce the ratings o f four risk elements while for others, the residual r i s k s are unchanged because the efficacy o f some o f the mitigation measures can be assessed only during implementation. Hence the residual overall project FM risk i s assessed to be “Substantial”. Risk assessment, mitigation measures and determination o f residual risks are tabulated below:
49
Risk
Inherent Risk Country Level P F M institution and system lack capacity for detecting financial irregularities in a t imely manner, including taking corrective actions. Entity Level
Planning Commission(PC) Local Government Engineering Deiartmeni(LGED) Bangladesh Water Development Board( B WDB) The Disaster Management Bureau(DMB)
Project level Inadequate FM capacities and mult iple implementing agencies
Overall Inherent Risk Control Risk Budget
Lengthy approvals at various tiers involving l ine ministries, MOF, P C and ERD with no service standards would lead to wastage o f project input o n fol low up and might impact o n quality o f budget prepared hurriedly considering the lead t ime required in approval process
Arbitrary slashing by planning commission/ ERD o f genuine budget requirement under Project Aid (PA) despite the IDA financing arrangements. Accounting Delay in having appropriate FM staff in Planning Commission, LGED, BWDB and DMB in place and no t using the BWDB Computerized Accounting System (CAS) for project accounting and absence o f C A S in other implementing Agencies might affect the accuracy and timeliness o f
Initial FM Risk
Rating
H
H H
M
H
H
Risk Mitigation
Various reforms o n country level P F M ongoing and more are planned under the donor supported P F M Improvement Program but those are unl ikely to have any impact in short term Weak FM capacities and lack o f entity FM organizations in entities except BWDB and moderate FM capacity in BWDB
Minimum benchmark to comply with the standard practice o f Financial management will be established
The implementing agencies and the concerned ministries wil l set service standards within their organizations and wil l explore ways to improve timeliness in scrutinizing and approving process by authorities beyond their respective boundaries
The P C M U will approach the ERD to agree that the project’s proposed allocation in ADPiRADP under P A i s no t reduced, since IDA funding has n o annual ceil ing o n funding under the approved credit. FMSs to be recruited for PC and other competent FM Staff for other Implementing Agencies wil l be required to assist early procurement and implementation o f the CAS. M S excel based system wi l l be used until a computerized system is functional. Technical Assistance for the PIUs wil l include their financial capacity building focusing o n strengthening accounting and financial reporting.
FM Risk after
Mitigation
M
H
S
S
M
S
50
Internal Control Absence o f adequate internal controls, segregation o f duties and domination o f informal decision-malung that break the chain o f authorities might affect financial governance o f the project.
Mul t ip le tiers o f checks and counter- checks o f the payment processing and approval function l ike ly to impact o n project financial progress. Funds Flow
opening o f Designated Account with a bank without adequate capacity in place, irregular submissions o f replenishment claims and delays in obtaining MoF’s authorization in each implementing Agencies except BWDB.
Implementation may suffer due to the
H
H
Financial Reporting
project components as part o f IFRs may be constrained until an appropriately customized Computerized system (CAS) i s functional. Consolidation o f IFRs by PC may not be t imely and efficient
Reporting project expenditures by
Audit
H
PC might not b e able to present accurate consolidated annual financial statements to the audotors o n a t imely basis. The audit reports might not capture accountability and governance issues adequately. The impact o f audits may be compromised due to the failure to disseminate audit reports and to address
H
Risk Mitigation
The FM manual for the project that would b e developed wou ld lay down the segregation o f duties and define the responsibilities for and the steps required t o process financial transactions
Payment processes and approval tiers for the project transactions wil l be simplif ied w h l e ensuring segregation o f duties o f the project’s FM function.
The Project Directors will identi fy the banks with appropriate capacities and ensure that FM staff undertake due diligence during preparation o f replenishment claims and authorization requests. The concerned ministries wil l make quick endorsement and fo l low up as required for MoF’s accelerated action.
Adequate payment controls wil l be instituted before funds are disbursed. Implementation supervision missions wil l undertake sample checks and desk reviews o f IFRs wil l examine for inconsistencies in use o f project funds. Regular reconcil iation o f project bank accounts would be made mandatorv
FM staff will use spread sheets to produce IFRs until a computerized system in place. FM staff wil l be oriented with and trained in the IFRs. The format and contents o f IFRs have been designed and harmonized with the Government’s accounting system. The F M S in the PC will be appropriately ski l led and the implementing agencies submission o f respective IFRs within the agreed deadlines wil l be monitored.
The F M S in the PC will b e appropriately skil led and the implementing agencies submission o f respective A F S s within the agreed deadlines wil l be monitored A Statement o f Audit Needs (SAN) wil l be agreed with the C&AG extending the audit focus on testing controls to prevent corruption and detect transactions with corrupt practices. Audit reports wi l l be posted in the project’s website to b e established for the project and a project audit committee wi l l review the audit findings and
FM Risk after
Mitigation
S
S
S
S
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Risk
audit issues properly.
Overall control Risk Overall Initial Project FM Risk
Project Financial Management Arrangements
Initial Risk Mitigation FM Risk FM after Risk Mitigation
Rating follow up on the latter. CAG will carry out the financial audits o f the project. In addition, the project w i l l institute operational audits throughout the project period to be conducted by a qualified private fm.
H S H Residual Risk S
17. The project financial management arrangements as agreed will be adequate to support the project implementation and to meet the fiduciary requirements o f the Bank in compliance with the provisions o f the OP/BP 10.02. The status, as assessed and agreed, for arrangements o n various aspects o f financial managements are stated below.
Consultant/ Project Staff
18. Staffing: Based on the FM capacities needed for the implementation o f respective part o f the projects, the need for FM staffing has been identified and agreed to be in place by internal assignment or open recruitment as appropriate within the dates shown in the table below.
Action needed Implementing Agency Planning Commission- PCMU
Consultant
FM Position
Agree TOR with IDA and December publish REO1 to appoint the 31,2008 person f rom project
FM Specialist
LGED
BWDB
DMB
Sr Accounts Officer
Accounts Officer
Accounts Officer
Project Staff
I Bywhen I
project effectiveness As above December
Project Staff
I effectiveness Project Staff I Issuance o f an Office Order I December
Agree through minutes o f negotiations to appoint the person within three months f rom project effectiveness o n a TOR agreed with IDA
I appointing the person from I 31,2008 I
3 1,2008 December 3 1,2008 1
The agencies will make appropriate provisions in the respective DPP for the above stated positions. Such FM staff will receive training on financial management and disbursement requirement o f IDA to be able to efficiently handle the FM aspects o f the project.
19. Development project proposal @PP) and project budgets: The Ministry of Planning (MOP), the coordinating agency for implementation, will prepare an umbrella DPP on the basis o f the separate DPPs submitted by the different implementing agencies (with approval by the respective ministries). The
52
MOP wil l compile the DPP and submit it to the planning commission for approval. The same process will be followed in respect t o submission and approval o f proposals for allocations under the Annual Development Plans.
20. Designated account and fund flows: IDA funds for the project wi l l flow through segregated Designated Accounts (DA) for MOP, LGED,BWDB and DMB to be opened as Convertible Taka Special Accounts (CONTASA) with such branches o f a commercial bank as having adequate experience (in maintaining such accounts), acceptable to IDA. Implementing agencies will be responsible for managing their respective designated accounts, the varying authorized limits for which will be set depending on the amount o f project fund to be allocated for various components. The FM capacity o f the LGED district offices having been assessed as inadequate, IDA funds will not f l ow to those locations. The Executive Engineers will supervise the works, certify the contractors bills and send those for payment to the Project Director at the LGED head quarters. The staffing and the accounting systems in BWDB Regional Accounting Centres (RACs) have been assessed as adequate for handling IDA funds, as such, IDA funds from the designated account for BWDB will f low to the operating bank accounts in the RACs as and when the need for decentralized payment should arise. Project funds will also f l ow through direct payments and issuance o f special commitments as and when required. The minimum application size for direct payments will be set at 20% o f outstanding amounts in the respective DAs. The amount payable to FA0 for implementing the Agriculture Recovery component wi l l be disbursed through direct payment to be handled by the PCMU.
21. Disbursement: 100 percent o f a l l project costs including taxes that will be funded by IDA will be disbursed under transaction-based traditional WB disbursement procedures . IDA will require full documentation where contracts for (i) goods exceed US$300,000; (ii) works exceed US$500,000, (iii) consulting f i r m s exceed US$lOO,OOO; and (iv) individual consultants exceed US$50,000. Expenditures below the above threshold will be claimed through Statement o f Expenditures (SOEs). The following table shows the IDA financing under different categories:
22. Books o f accounts and financial reporting: Each agency will maintain separate books and records, prepare financial statements, and periodic un-audited Inter im Financial Reports (IUFR) for the component(s) implemented by them. The project will fo l low the GOB Project Accounting Manual in maintaining books o f accounts and in complying with monthly, quarterly and annual financial reporting requirements o f various government agencies as wel l as the Bank. Agencies that do not have computerized Accounting Systems wil l use excel-based accounting tools to maintain the books using GOB code o f accounts and project components. Manual Registers will be used to adequately record acquisition and use o f a l l project f ixed assets. Physical Inventory at the end o f each financial year will ensure the updated status on usable condition and safe custody o f the assets.
23. Each implementing agency will submit to the PCMU ( with a copy to the Bank ) the IUFRs for the respective part o f the project, within 30 days after each quarter, showing receipts, uses and balances o f funds by IDA and other sources if any and status o f procurement activities including contract wise status o f payment against the contract value. Actual expenditures for the project wi l l be compared with the budgets each quarter; budget variances and their rationale will be discussed in the Interim Financial Reports (IFRs). The P C M U will prepare the IUFRs for the components it implements and will submit to the Bank, consolidated IUFRs for the entire project not later than 45 days after the end o f each quarter.
53
Category Equivalent
1 SDR= Amount @
4.
Financing %age
k, Note: The
1.57291 US$
10,570,000
22,730,000
15,740,000
4,090,000
3,470,000
5,090,000
61,690,000
7,610,000
69,300,000
Table: Allocation o f ID
100%
100%
100%
100%
100%
100%
100%
Description
Component A Agriculture Recovery Support Component A (FAO) Works Goods, Works, Consultancy Services and Incremental Operating Costs including Training (a) Components B and D3 (LGED)
(b) Components C and D2 (BWDB)
(c ) Components D1 (DMB)
(d) Components E and FI , F2, F3 and F4 (PCMU)
Component F5 Emergency Support for Future Disasters Sub-total
Unallocated
Total IDA Financed
’igures indicated in the “Project Costs” columr
. Credit 1 Project
cost $million
(* )
16.00
41.80
26.20
8.00
9.00
8.00
109.00
109.00
-oceeds AI located
IDA Proceeds
million) ($
16.62
35.75
24.75
6.42
5.45
8.00
97.00
12.00
109.00
I this Table are init ial estin
SDR
I
.es that are consistent with the estimated costs in-Table in Annex 3 titled “Summary o f Estimated Project Costs and Financing Arrangements”. These costs w i l l be subject to revision at the M i d Term Review (MTR), based on a detailed analysis o f the progress of each project component/implementing agency, actual costs incurred for procured goods, works, consultancy services, and incremental operating costs o f the project for each agency, and the remaining activities to be completed by each agency to achieve the project objectives and i t s development outcomes. Accordingly, the current amount o f the Credit allocated for each category o f the Credit, as shown in the Columns 4 and 5 o f the above Table and in Schedule 2, Section IV. A.2 o f the Financing Agreement dated September 4,2008 w i l l be revised at the MTR.
24. Internal Audit: In absence o f in-house capacities for Internal Audit in most o f the implementing agencies, annual internal audits for this project will be outsourced and funded by project funds o n the basis o f TORS to be agreed with the Bank. T h e P C M U wil l procure the internal auditor, review the audit report and will receive feed back f i o m the various agencies and will present the findings to the Project Steering Committee for i t s review and instructions on fol low up.
External Audit:
25. Each implementing agency wil l prepare annual financial statements reflecting the project resources received and used o n the part o f the project it implemented and submit it to the P C M U and the audit office by August 3 1, each year. The PCMU will prepare consolidated annual financial statements for the entire project showing appropriate break down by parts o f the project implemented by each agency and make it available to the auditor by September 15, each year. Such financial statements would be audited by the Foreign Aided Project Audit Directorate o f the Comptroller and Auditor General (C&AG). A Statement o f Audit Needs (ASN) will be prepared by the P C M U and agreed with the C&AG. The P C M U wil l submit the consolidated audited financial statements for the entire project not later than
54
December, 30 each year. Such audited consolidated financial statements will be submitted to the Chair, Steering Committee with copies to the Secretary o f each implementing ministry with management letters addressed to head o f each implementing agency. The A S N wil l include audit focus on testing efficacy o f internal control arrangements at various agencies and transaction testing for detection o f fraud and corruption. The following audit reports wil l be monitored in the Audit Report Compliance System:
Coordinating Agency Ministry o f Planning
Audit Type Auditor Deadline
Audit o f Project’s Consolidated Foreign Aided Project December 3 1 Annual Financial Statements Audit Directorate under
Comptroller & Auditor General
26. Supervision Plan: The in i t ia l supervision will focus o n compliance with a l l agreed actions, terms, and conditions including Project FM staff being assigned and o n board, identifying any FM or disbursement issues in project implementation and agreeing on redressing measures. The implementing agencies’ readiness for access to project funds, use o f appropriate accounting system for Project financial management, production o f f i rst IFRs o n time, and use o f internal controls o n FM functions wil l be closely reviewed. In addition, supervision efforts will focus o n sampling expenditures below prior-review thresholds, reviewing payment processes against the defined control framework, and monitoring the progress o f institutional preparedness and strengthening.
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Annex 5: Procurement Arrangements Bangladesh: Emergency 2007 Cyclone Recovery and Restoration Project
1. Country Procurement Environment: The Country Procurement Assessment Report 2002 (CPAR) identified inadequate public procurement practices as an impediment to project implementation in Bangladesh. K e y deficiencies identified were: absence o f a sound legal framework, protracted bureaucratic procedures allowing multi-point rent seelung, lack o f critical mass o f professionals to manage public procurement, inordinate delays in completing the procurement process and ineffective contract administration and absence o f mechanisms for ensuring transparency and accountability in public procurement.
2. Procurement Reform Actions: Fol lowing the CPAR recommendations, the Government, with Bank’s technical assistance, implemented a Public Procurement Reform Project (PPRP) during 2002-2007. As a part o f the reform, the Government has established a Central Procurement Technical Unit (CPTU) within the Implementation Monitor ing and Evaluation Div is ion (IMED) o f the Ministry o f Planning with staffing funded f rom own resources; issued Public Procurement Regulations 2003, Public Procurement Ac t 2006 (PPA), and Public Procurement Rules 2008 (PPR) with associated procedures and documents, developed a critical mass o f 25 national trainers and trained 1800 staff; and established a fully functional procurement website with in i t ia l p i lot ing o f a procurement performance tracking system using a centralized management information system. The law and the rules contain most features o f international good procurement practices that among others include: (i) non-discrimination o f bidders; (ii) publishing bidding opportunities and contract award information above specified threshold in the CPTU’s website; (iii) clear accountability for delegation and decision-malung; (iv) sanctions for fraudulent and corrupt practice; and (v) independent review mechanism for bidders protests.
3. The new rules are being implemented by al l public sector entities with varying degrees. Though the landscape o f procurement has been reshaped in the last several years, there are s t i l l a number o f potential challenges concerning implementation o f the actlrules, including inadequate enforcement o f rules, inadequate adherence to the provisions o f streamlined procurement approval process, delays in contract award for large value contracts, ineffective contract administration, allegations o f fraud and corruption including incidences o f collusive bidding practices, and polit ical interference. T o sustain the reform effort and address those issues, with Bank’s technical assistance, the Government has started a follow-up project- the Public Procurement Reform Project I1 in September, 2007-that focuses largely o n the implementation and monitoring o f PPA/ PPR at the key sectoral agencies including management o f procurement, piloting electronic government procurement (e-GP), and behavioral change and social accountability.
General
4. Procurement under the project would be carried out in accordance with the Wor ld Bank’s Guidelines: Procurement under IBRD Loans and IDA Credits o f M a y 2004 revised October 2006 (Procurement Guidelines), and Guidelines for Selection and Employment o f Consultants by Wor ld Bank Borrowers o f M a y 2004 revised October 2006 (Consultant Guidelines). Within the overall context o f the Bank guidelines, local procurement o f goods, works, and services (for which the shortlist entirely comprised o f national consultants) will fo l low the Government’s Public Procurement A c t 2006- PPA and Public Procurement Rules 2008- PPR (goods: < US$ 300,000 per contract, works: < US$5,000,000 per contract, and consulting services- f i rms: <US$ 200,000 per contract and individual consultant- < US$50,000 per contract), and in case o f any conflicts between the two procedures or ambiguous/confusion interpretation Bank Guidelines wil l prevail.
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Expected major procurement o f works, goods and consultants’ services will be announced in the General Procurement Notice (GPN) o f the dgMarket and United Nations Development Business (UNDB) online.
5. The project has the fol lowing six components: Component A: Recovery o f Agriculture Sector and Improvement Program; Component B: Reconstruction and Improvement o f Multipurpose Shelters; Component C: Rehabilitation o f Coastal Embankments; Component D: Long-Term Disaster hsk Mit igat ion Program; Component E: Monitor ing and Evaluation o f Project Impact; and Component F: Project Management and Technical Assistance for Future Disasters. Implementation responsibilities are as follows: FAO, in coordination with the Ministry o f Agriculture (through Department o f Agnculture Extension) and the Ministry o f Fisheries and Livestock (through Department o f Fisheries and Department o f Livestock Services)- Component A; Local Government Engineering Department (LGED)- Component B and part o f Component D (D3- preparation o f projects for disaster shelters and up-gradation o f rural roads); Bangladesh Water Development Board (BWDB)- Component C and part o f component D (D2- preparation o f r iver bank, and coastal embankment improvement programs); Ministry o f Food and Disaster (through Disaster Management Bureau- DMB)- part o f Component D (Dl- disaster risk mitigation) and part o f Component F (F2- strategic studies, jo in t ly with Ministry o f Finance); Ministry o f Planning- Component E and F (except F2). A Project Steering Committee (PSC) at the Ministry o f Planning (MOP) wil l provide the oversight and coordination functions. A Project Coordination and Management Unit (PCMU) within (MOP) will be responsible for day to day coordination and monitoring o f project activities with the support o f a group o f technical specialists including one for procurement.
Project components and responsibility:
6. Procurement Capacity and Risk Assessment: This project i s prepared under OP/BP 8.00 (Rapid Responses to Crises and Emergencies), and accordingly procurement arrangements has been made with some flexibil i ty with due regard to the associated risks. Bo th the implementing agencies-LGED and BWDB-have experience successfully administering WB-financed projects according to procurement guidelines, with a few areas o f generic weaknesses. BWDB’s procurement administration faces greater capacity constraints compared to LGED and has instances o f inappropriate bidding practices including misprocurement. Both agencies have common weaknesses in terms o f close monitoring, award delays, and management o f procurement process including contract administrations. FA0 will largely handle the entire Component A concerning Ministry o f Agnculture and Ministry o f Fisheries and Livestock. DMB will have few consultancy packages, and given their inadequate capacity, the independent consultant attached to the Planning Commission will assist DMB in processing procurement. The same consultant will also assist Planning Commission for the consultancies under components E and F. Given the experience o f previous flood projects and the findings o f post reviews, there are considerable r isks in such emergency interventions, specially relating to works contracts to be implemented by LGED and BWDB. T o safeguard WB fund, a critical review o f procurement has been done, and in consideration o f the type o f procurement with associated way o f managing them, the risk i s rated as “high” f rom procurement operation and contract administration viewpoint. T o minimize the risk, a set o f mitigation measures has been agreed.
7. have been put in place to mitigate procurement associated risks:
Measures for Improving Governance in Procurement: The fol lowing key arrangements
a. appointment o f an independent procurement expert attached to the P C M U who will assist P C M U and provide oversight function for the procurement under pr ior review contracts o f various implementing agencies that, among others, will include sample reviews o f bidding documents, bid evaluation reports, and post review reports for small value contracts;
b. provision o f procurement consultant(s) in the team o f design and supervision consultants for LGED and BWDB; the D&S consultant will act as “Engineer” for c iv i l works contracts
57
subject t o prior review. The procurement consultant(s) will be responsible to assist the agency on a l l procurement related issues concerning bidding and contract administration;
c. provision o f independent procurement expert’s participating in bid evaluation committee (BEC) meetings, assisting the BEC, and preparing an oversight report on the overall procurement process o f pr ior review contracts; and provision o f including a representative f rom the design and supervision consultant in al l BECs o f LGED and BWDB.
d. introducing a procurement r isk mitigation plan (PRMP) with a set o f measurable performance monitoring indicators with provision o f quarterly report by each implementing agency with the assistance o f the independent procurement expert;
e. publishing procurement plan, bidding opportunities, contract award information, complaints and actions taken, and procurement performance information in the website o f CPTU and the concerned implementing agency, if applicable; and
f. provision o f post reviews o n a semi-annual basis by an independent consultant (chartered accounting firm with international or similar affiliation) hired by the Bank.
8. In addition, the following steps will be followed as a part o f procurement r i s k mitigation:
Alert agencies’ officials/ staffi The agencies in reference to the provisions in the PPAPPR and the Bank’s guidelines will issue an alert letter notifying about the possible consequences o f corrupt and similar behavior in procurement practices and actions to be taken against the officials/staff if get involved in such practices.
Alert bidders: In the pre-bid meeting, agencies will alert a l l bidders on consequences o f corrupt practices (fraud and corruption, collusion, coercion, etc.), including debarring contractors.
Multiple dropping: Mult ip le dropping o f bids (bids submitted in more than one location and opened in one location) will not be permissible for all procurement under the WB-financed project.
Timeliness of bid evaluation and contract award: As per the PPN PPR, agencies wil l ensure award o f contract within the in i t ia l bid validity period, and closely monitor the timing, talung into account that the WB may not finance contracts which are not awarded within the period o f bid validity.
Action for corruptpractices (bidders and GOB staffl: In cases o f possible collusion found or established, agencies will initiate actions, including debarring contractors/suppliers and taking actions against responsible GOB staff (if applicable), as appropriate in accordance with PPA and WB’s guidelines.
Filing and record-keeping: Agencies will preserve records and al l documents regarding their public procurement, in accordance with provisions o f the PPAPPR.
Publication of award of contract in websites: For I C B and large value consultancy contracts including direct contracting and sole source selection o f consultants, agencies, within two weeks o f contract award, will publish contract award information in dghlarketl UNDB online as per the Bank’s guidelines; this i s in addition to CPTU and agencies’ website. . Late payments and liquidated damages: Agencies will ensure timely payment o f bills o f the suppliers/contractors/consultants and imposition o f liquidated damages for delayed completion as per the contract.
58
(ix) Oversight by Project Director (PD): The PD wil l provide oversight function o f procurement and provide the Bank quarterly report identifying any procurement deficiencies including measurement o f procurement performance using the indicators.
(x) NCB conditions to be added: Bids should be submitted and opened in public in one location immediately after the deadline for submission.
Procurement Arrangements:
9. Overall procurement arrangements, with tentative amounts, are given in Table A.
10. Procurement of Works. Civil works are primarily in Component B and Component C and deal with the construction o f new disaster shelters, rehabilitation o f existing disaster shelters, improvement o f rural roads and communication network, rehabilitation o f embankments, water control structures, and river-bank protective works. Works would be packaged into large contracts as far as practicable in order to attract competent contractors with capacity and qualification to carry out works at required quality and speed essential for these works. A few ICB contracts are expected for procurement o f vehicles and other equipment.
(9 International Competitive Bidding (ICB). Civ i l works contracts estimated to cost more than US$5 .O mil l ion equivalent per contract may be procured using ICB.
(ii) National Competitive Bidding - NCB: Civil works contracts estimated to cost less than US$5.0 mi l l ion equivalent per contract may be procured using NCB.
(iii) Direct Contracting - DC and Shopping: For very small value works or community type works, or works o f emergency nature either direct contracting or shopping (solicitation o f three quotations) may be used as i s permissible in the PPA/PPR with the specified thresholds provided therein.
(iv) Community-Based Contracting (CBC): For small simple c iv i l work activities (e.g. afforestation along embankments and aftercare, simple K i l l a construction and rehabilitation works, earth works for Killas, etc.) community-contracts up to US$lO,OOO equivalent may be awarded to generate local employment opportunities. These will mostly b e implemented by the local community/ landless contracting societies/ or similar groups
Procurement of Goods. Generally goods will be procured using I C B for large packages, followed by N C B and national shopping for small value contracts.
11.
(i) ICB: Goods and equipment contracts estimated to cost US$300,000 equivalent or more per contract will be procured using ICB. This includes equipment, vehicles and in probable case laboratory equipment to support quality inspection o f works.
(ii) NCB: Goods and equipment contracts estimated to cost less than US$300,000 equivalent per contract may be procured using NCB. This includes office equipment and vehicles etc.
(iii) Shopping - S: Goods o f very small contracts or individual purchases o f off-the-shelf items may be procured, through prudent shopping procedures. FA0 may procure goods using shopping procedure (national or international) for contracts estimated to cost less than US$30,000 equivalent per contract
(iv) Direct Contracting - DC: Computer software, books journals and training materials with individual contract costing less US$2,000 equivalent may be procured fol lowing D C with the prior approval o f the Association.
59
Table A: Details of Procurement Arrangments (US$ million)"
Category 1. Works (a) Construction of New Disaster Shelters (under Part B I )
(b) Improvement of Existing Disaster Shelters (under Part 82)
(c) Improvement of Communicaton network to Shelters (under Part B3)
(d) Rehablitationllmprovement of Coastal Embankments (under Part C)
Sub-Total Works
2. Goods (a) Equipment and vehicles (under Part B)
(b) Equipment and vehicles (under Part C)
(c) Equipment and Vehicles(under Part D I )
Sub-Total Goods
3. Consulting Services (a) Design & Const Supervision Consultants for shelters (under Part B4)
(b) Design & Construction Supervision of CE (under Part C3)
(c) Monitoring and Evalutaion Consultants (under Part E)
(d) Consulting services (under Part D I )
(e) Preparatiopn of RBlP (under Part D2.1 and D2.2)
(f) Preparation of Proejct for Shelters & Rural Roads (under Part D3)
(9) Strategic Studies (under Part F)
(h) Establishment of Disaster Response Fund (under Part F2)
Sub-Total Consulting Sevices
4. Agricultural Recovery through FA0 (Part A)
5. Incremental Operating expenditures and training (a) incremental administrative and operating expenditures
(b) Training
Sub-total Incremental operating expenditues 8 training
6. Emergency Support for Future Disasters
Total
li Figures in Darenthesis are the amounts to be financed bv the IDA Crl
ICB NCB
14.5 (14.5: 12.5
(12.5: 7.0
(7.0: 15.0
(15.0: 49.0
(49.01
0.5 (0.5: 0.5
(0.5: 2.0
(2.0: 3.0
(3.0J
52.0 (52.0;
Othe?
2.0 (2.0
2.0 (2.0 4.0
(4.0
0.5 (0.5 0.5
(0.5 1 .o
(1.0 2.0
(2.0
3.0 (3.0 2.0
(2.0 3.0
(3.0 4.0
(4.0 6.2
(6.2 1.8
(1.8 1.2
(1.2 0.3
(0.3 21.5
(21.5 16.0
(16.0
3.0 (3.0 2.5
(2.5 5.5
(5.5 8.0
(8.0 57.0
(57.0 it. All costs include contineencies.
Total
14.5 (1 4.5) 14.5
(1 4.5) 7.0
(7.0) 17.0
(17.0) 53.0
(53.0)
1 .o (1 .O) 1 .o
(1 .O) 3.0
(3.0) 5.0
(5.0)
3.0 (3.0) 2.0
(2.0) 3.0
4.0 (4.0) 6.2
(6.2) 1.8
(1 3) 1.2
(1.2) 0.3
(0.3) 21.5
(21.5) 16.0
(16.0)
3.0 (3.0) 2.5
(2.5) 5.5
(5.5) 8.0
(8.0) 109.0
(109.0)
(3.0)
Y Y
Includes (i) goods to be procured through shopping; direct contracting; (ii) consulting services to be procured following quality and cost based selection, quality based selection, selection under fixed-budget, least cost selection, single source selection, and individual consultants' methods, and cost o f training, seminar, workshops and other dissemination activities; (iii) incremental operating cost; and (iv) small value works using direct contracting, community based works, and solicitation o f quotations.
21
60
12. Consulting Services: Major consultancy assignments relate to design and construction supervision, monitoring and evaluation, feasibility studies, and project preparation for disaster shelters. The following methods will be applicable:
(a) Quality- and Cost- Based Selection (QCBS/ Quality-Based Selection): Consulting services through f i r m s estimated to cost US$200,000 equivalent or more per contract will be procured fol lowing either QCBS or QBS, depending on the type o f assignment.
(b) Fixed Budget Selection (FBS): Services through f i r m s estimated to cost less than US$200,000 equivalent per contract may be procured fol lowing FBS in accordance with the Borrower’s Procurement Regulations.
(c) Consultants’ Qualification (C@: Services through f i r m s estimated to cost less than US$lOO,OOO equivalent per contract may be procured fol lowing FBS or CQ, depending o n the type o f assignment, in accordance with the Borrower’s Procurement Regulations.
(d) Single-Source Selection (SSS): Specific consultants’ services through f irms, satisfying Consultants’ Guidelines (paragraph 3.9 to 3.13), with the Association’s pr ior agreement, may be procured following SSS.
(e) Individual Consultants (IC): Services for assignments, estimated to cost US$50,000 or more, for which teams o f personnel are not required and the experience and qualifications o f the individual are the paramount requirement, will be procured through individuals in accordance with paragraph 5.4, Section V o f the Consultants Guidelines. All other individual consultants may be selected following Borrower’s Procurement Regulations. Individuals will be selected on the basis o f their qualifications for the assignment.
13. Agricultural Recovery through F A 0 (Part A). Food and Agriculture Organization (FAO) would be contracted o n a sole source basis to implement Component A o f the project in coordination with the Ministry o f Agnculture and Ministry o f Fisheries and Livestock; the contract i s about US16 mi l l ion o f which about US$7 m i l l i on wil l be for services, training, and administrative expenditures and remaining USS9 m i l l i on will be for purchase o f goods, such as seeds, power tillers etc. This component mainly deals with provisions o f technical assistance including crops, agnculture inputs/equipment, livestock, and fisheries. FA0 is the only UN agency that deals with al l aspects o f agriculture and has the necessary technical expertise to address the issues related to agriculture recovery under the normal and disaster related situations. Since F A 0 wi l l act as implementing agency, for procurement of goods involving agriculture inputs including small value equipment, crops or seeds, F A 0 wi l l follow the Bank’s Procurement Guidelines. There are several reasons for sole sourcing FA0 to implement the agriculture recovery component o f the ERC project:
(a) FA0 has the necessary international technical and institutional experience and expertise in implementing agnculture recovery projects around the world. I t i s uniquely qualified to provide technical services required under Component A in Bangladesh. The other companies and NGOs are not in a position to provide a complete package o f technical services, advice, training and goods needed for introducing technologies needed to shift land used in costal areas with saline environment;
(b) FA0 has been very active in the agnculture development program in Bangladesh from the beginning and has the necessary experience and expertise to implement the agnculture recovery program and thus it can deliver the assistance at the speed necessary for agncultural recovery;
(c) FA0 in Bangladesh will be supported by technical experts f rom FAO/HQ, which i s essential for emergency type projects where activities need to be implemented with a sense o f urgency;
61
(d) Since FA0 i s an international UN agency, it i s able to import necessary agricultural inputs ( such as fertilizer and seeds ) much more rapidly than the normal procurement process wil l allow;
(e) The local agencies responsible for implementing programs related to crops, fisheries and livestock consists o f two min is t ies and three extension departments ( the Department o f Agricultural Extension (DAE), the Department o f Fisheries (DOF), and the Department o f Livestock Services (DLS) which are not only over-extended but also have l imi ted capacity to implement emergency projects l ike the proposed A p c u l t u r e Recovery Program under ERC;
( f ) I t would be quicker, easier and efficient to implement the project since the GOB would deal with only one agency (the FAO) which in turn will work closely with the concerned ministries and department agencies with which FA0 i s already workmg and has extensive experience;
(g) The i s an emergency operation being processed under OP8.0 therefore implementation will be expedited by selection o f FA0 o n sole sources basis; and
(h) The Government has incorporated in the implementation documents (DPP approved by planning Commission) that FA0 would provide services for implementation o f component A o f the Project.
Operating expenditures and training: The operating costs will include operations and maintenance o f equipment and vehicles, hiring o f vehicles, office rent, costs o f consumables, fuel, office utilities and supplies, bank charges, and advertising expenses but excluding any salaries and allowances o f c iv i l servants.
14. Emergency Support for Future Disasters: Procurement arrangement shall be made upon pr ior approval o f the Bank.
15. Procurement and Selection Planning: The Borrower prepared a Procurement Plan for project implementation which provides the basis for the procurement methods. The Plan covers the init ial 18 months o f the project and wil l be updated annually covering always the next 18 months o f project implementation. I t will also be available in the Project’s database and in the W B ’ s external website. Also, FA0 for i t s part under Component A o f the project has prepared an in i t ia l procurement plan for procurement o f apcu l tu ra l inputs/ supplies and equipment. Prior to issuance o f any invitation for bids for procurement o f goods and works and selection o f services, the proposed Plan shall be furnished to the WB for i t s review and approval, in accordance with the provisions o f paragraph 1 o f Appendix 1 to the respective Guidelines. Procurement o f goods and works and selection o f a l l consultants will be undertaken in accordance with Plans approved by the WB.
12. Use o f Standard Bidding and Contract Documents. For ICB procurement o f goods and works, the use o f IDA’S Standard Bidding Documents (SBD) i s mandatory. For NCB procurement, agencies may use the Government’s Standard Bidding Documents in form acceptable to the WB. For selection o f international consulting f irms, the WB’s Standard Request for Proposals (RFP), including standard contract form wil l be used; for local consultants Government’s procedure la id out in the national regulations will apply including i t s documentation acceptable to the Bank. Depending on the type o f procurement, the WB’s or Government’s Standard Bid/Proposal Evaluation Form will be followed for submission o f evaluation reports.
62
Prior Review Thresholds
Contract Value (Threshold)
>= US$5,000,000
<US$5,000,000
>=US$300,000
<US$300,000
~=us$200,000
<us$200,000
<us$loo,ooo
16. Goods and Works: During the init ial 18 months of the project, the WB will carry out pr ior review o f the following contracts: (i) for goods- f i rs t contract from each implementing agency using NCB, and thereafter contracts estimated to cost US$ 300,000 equivalent or more, irrespective o f the procedures; (ii) for works- f i rst packagehontract using NCB, and thereafter al l contracts estimated to cost US$500,000 equivalent or more, irrespective o f the procedures; and (iii) al l contracts for goods and works using direct contracting. Af ter 18 months, the above thresholds will be revieweddefinedredefined in the revised procurement plan, if necessary but subject t o the prior review and “no objection”.
13. Consultants Services: The WB’s pr ior review will be required for consultants’ services contracts estimated to cost US$lOO,OOO equivalent or more for f i rms and US$50,000 equivalent or more for individuals. All single-source contracts wil l be subject t o pr ior agreement by the WB. All TORS o f the consultants are subject to the W B ’ s prior review.
Post Review
For compliance with the W B ’ s procurement procedures, the WB will carry out sample post review o f contracts that are below the prior review threshold. Such review (ex-post and procurement audit) o f contracts below the threshold will constitute a sample o f about 20 percent o f the contracts in each agency.
17.
Procurement Method
Contracts Subject to Prior Review
ICB Al l contracts.
NCB First contract by each implementing agency regardless o f value in NCB and thereafter, a l l contracts valued US$500,000 or more
Shopping Post Review DC All contracts I C B All contracts
NCB First contract by each implementing agency regardless o f value in NCB and thereafter, a l l contracts valued US$300,000 o r more.
Shopping Post Review DC All contracts QCBS/ QBS All contracts.
FBS All contracts o f US$lOO,OOO or more
FBSiLCS Post review
Table: B Thresholds for Procurement Methods and Pr ior Review a/
>=US$50,000
Expenditure Category
Works
Goods
I C - Qualifications All contracts (Section V o f the Consultant
Services
63
Expenditure Category
Contract Value (Threshold)
Procurement Method
Guidelines) IC- Qualifications,
Contracts Subject to Prior Review
Post review references.
sss Prior agreement
RRP-B Construction id Rehabilitation and Shelters Dec. 2008
N o Prior
meeting the requirements o f 3.9 to 3.12 o f the Consultant Guidelines I
a/ Prior review threshold would be reviewed after 18 months and adjusted, if necessary. Review of Procurement Performance
18. The WB will monitor the compliance with the requirements o f W B ’ s different procurement methods and performance standards o n a continuous basis. As part o f the project’s planned annual review/mid-term review, a comprehensive assessment o f procurement performance wil l also be carried out. Based on the review, in consultation with the Government, the WE3 may revise the prior review threshold, including the procurement and selection methods. Reporting. The project will prepare quarterly Procurement Monitoring Report (PROCMOR) providing status o f procurement and the performance monitoring indicators, as per specific formats to be agreed with GOB. Frequency of procurement supervision missions proposed. Once every six months. Besides, as part o f the fiduciary control, WB’s staff and independent consultant, as deemed appropriate, will carry out post review/procurement audit o f contracts.
19.
20.
1. Civil works.
Ref. No. Contract Description
I - E
Construction o f new shelters (50 shelters)
Approx 1.75
mil l ion (14.5
million) Approx 1 M or less
(14.5 million)
10,000 (300,000)
Approx 1 M (4.0
million)
ECRRP- B1-1-8 8 Prior
No I N C B
Various dates starting f rom Dec 2008
Rehabilitation shelters (250 shelters)
ECRRP- B2- 1-24 16-24 N C B
I I Various dates starting f rom Dec 2008
Post (Prior review of first contract in each district each year)
ECRRP- B-CBC-1- 30
ECRRP- B3a-1-4 & ECRRP- B3b-1-3
Construction o f kilas
Improvement o f communicatio nlroads to shelters
30 N o CBC
NCB
Various dates starting f rom Dec 2008 7 N o Prior
64
1 2 3 4 5 6 7 Ref. No. Contract Estimate Number Procurem Domesti Review
Description Cost per o f ent C by Bank contract Contrac Method Prefere (Prior / Post) (US$) ts nce
(yestno)
2. Consulting Services
8 Expected Bid-Opening Date
- 1
Rehabilitation 2 M
embankments million) Rehabilitation 1M
(9.0 4-5 NCB N o Pr io r ECRRP- of C-E- 1-3
(5.0 5 NCB No Pr io r ECRRP- ofwater C-WC-1-5 control million)
structures Rehabilitation 1M (3,0 o f river-bank 3 NCB No Pr io r protection C-BP- 1-3
Post (Prior ECRRP- Vegetatiodpl io,ooo review o f f i r s t C-CBC-1- antation along (300,000) 30 CBC N o contract in 30 embankments each distr ict
each year)
Ref. No.
Starting from March 2009
Starting from Dec 2008
Starting from Dec. 2008
Starting from January 2009
1
- 2
- 3
2 3 Estimated
Description o f Assignment cos t (US$
Mi l l ion)
4.
5 -
4 5 Number Selection
o f Method Contracts
6.
7.
8
-
-
-
Detailed design and construction supervision for rehabilitation and construction o f Disaster Shelters (Bl-B3) components Design and construction o f Coastal embankments (Component C2) Monitoring and evaluation consultants and component under E Preparation o f RBIP, feasibility
3.0 1 QCBS
2.0 1 QCBS
QCBS/ QBS
3.0 1
O I 1 QCBSI
Preparation o f CEIP, feasibility I O I ? I QCBS/ studies and designs etc. D2.2 D3 Project preparation for Disaster shelters project
D1 Consulting services
(attached to PCMU for four Independent Procurement Expert
years)
Review by Bank (Prior/ Post)
I QBS
L.U
1.8 1 QCBS
QCBSI 4 2 QBS
0.25 3 I C
Pr io r
P r io r
P r io r
P r io r
P r io r ~
P r io r
Pr io r
P r io r
7 Expected Proposals
Submission Date
December 2008
December 2008
December 2008
July 2009
July 2009
July 2009
July 2009
November 2008
FA0 prepared detai led procurement arrangements (procurement plan) for agncul tura l inputs/ supplies a n d equipment.
65
Annex 6: Implementation and Monitoring Arrangements
Bangladesh: Emergency 2007 Cyclone Recovery and Restoration Project
Implementation Arrangements (See Chart 1 and 2).
1. The Chart 2 shows the overall organizational set up for the implementation o f the project and agencies responsible for the project components and sub-components. The primary implementing agencies would be: (i) the Local Government Engineering Department (LGED) o f the Ministry o f Local Government, Cooperatives and Rural Development; (ii) the Bangladesh Water Development Board (BWDB) within the Ministry o f Water Resources; (iii) the Disaster Management Bureau (DMB) o f Ministry o f Food and Disaster Management; (iv) the FAO, in coordination with Department o f Agriculture Extension (DAE) o f the Ministry o f Agnculture and the Department o f Livestock Services (DLS) and Department o f Fisheries (DOF) the Ministry o f Fisheries and Livestock; and (v) the Ministry o f Planning.
2. The FA0 will be contracted to implement sub-component A, in coordination with the DAE, the D L S and the DOF. The LGED will be responsible for implementation o f sub-components B and 0 3 . The BWDB will be responsible for sub-components C and 0 2 . The DMB will be responsible for implementation o f sub-component Dl and F2 (jointly with Ministry of Finance). The Ministry o f Planning would implement component F (except F2).
3. Project Steering Committee. A Project Steering Committee (PSC) will be established in the Ministry o f Planning. The PSC will be chaired by the Secretary, Ministry o f Planning, and include Secretaries o f the Ministries o f Water Resources, Agnculture, Fisheries and Livestock, Food and Disaster Management and Local Government, Cooperatives and Rural Development, Primary and Mass Education, and Director Generals o f BWDB, DMB, DOF and DLS, and Chief Engineer o f LGED. Representatives f rom the Implementation. Monitoring and Evaluation Div is ion o f the ERD, the Finance Divis ion o f the Planning Commission, and Country Representative o f FA0 or his designated representative for Component A will also be invited to attend the PSC. The. The PSC will provide oversight and coordination in implementation o f the Project.
4. Project Coordination and Monitoring Unit (PCMU). The multi-sectoral nature o f the project required close coordination and monitoring o f a l l project components among the implementing agencies. A small Project Coordination and Monitoring Unit (PCMU), that would be established in the Ministry o f Planning, would take this mandate and responsibility.
Implementation Arrangement for Component A
5. Component A will operate in a total o f 13 sub-districts (upazilas) in Khulna and Barisal Divisions. These are the 12 most severely affected upazilas in the districts o f Bagerhat, Pirojpur, Barguna, Patuakhali and Jhalokathi, and one upazila in Barisal district where damage was more moderate but where existing small-scale irrigation schemes can be used for irrigationhoro production demonstrations. The 13 project upazilas are presented in the Operations Manual for Component A. The target beneficiaries include: landless households; small and marginal farmers; small-scale livestock owners and fisherfolk; and vulnerable groups such as poor, female-headed households. They wil l not have benefited already f rom other projects or programs providing the same type o f l ivelihood rehabilitation and agriculture support in the cyclone-affected areas. By the end o f the project period, component A i s expected to have reached, directly, some 107,500 poor farmers in the selected upazilas and unions. Of this total, about 71,000 are concerned with crops (including horticulture), 14,500 are involved in capture fisheries and aquaculture and 22,000 in livestock (cattle and poultry) production. The
66
project would also indirectly benefit an unquantifiable number o f households, through increased food production and enhanced opportunities for non-farm income generating activities within the communities assisted.
6. FA0 will be the implementing partner o f Component A. The FA0 will implement the activities o f Component A in close consultation and association with the DAE, D L S and DOF both at national and f ie ld level. For the purpose o f the project, the Chief Technical Advisor o f FA0 team (who i s the Team Leader) will report directly to the Project Director o f the Project Coordination and Monitor ing Unit (PCMU) o f the Ministry o f Planning. The Chief Technical Advisor will prepare and send to the PD (PCMU), annual and quarterly work plans, budgets, progress reports, and financial reports and various other reports and information requested by the PD and the M&E Consultants f rom time to time. Considering the urgency and the scope o f the intervention and the geographic coverage area, i t may be diff icult for FA0 and the concerned ministries and their extension agencies to deliver planned goods and services to the communities directly within a desired timeframe. Therefore, FA0 will partner with qualified national and/or local NGOs, who have the appropriate experience and access to communities in villages for the needs assessment, social mobilization and delivery o f inputs, under direct control and supervision o f component staff.
7. Chart 1 below presents institutional arrangements for implementation and coordination for Component A. Detailed implementation strategy including targeting criteria, delivery and coordination and monitoring arrangements are described in Operations Manual for Component A. The FA0 will be contracted by the P C M U as implementing partner for Component A to assist the DAE, D L S and DOF. The PCMU will consult the three agencies to finalize TOR o f the contract to be signed with the FAO. Other implementing partners are qualified international and nationalllocal NGOs, with appropriate experience and access to communities in villages for the needs assessment, social mobilization and delivery o f inputs, under direct control and supervision o f component staff. FA0 will hire partnering NGOs directly in consultation with PCMU.
8. General oversight and co-ordination will be provided by the Component Co-ordination Committee (CCC), which wil l be headed by the Secretaries o f Agriculture and Fisheries and Livestock and include the Director Generals o f the Agricultural Extension, Fisheries and Livestock Services Departments and representative o f the offices o f the six District Deputy Commissioners (on a rotational basis), c iv i l society at the district level (again, o n a rotational basis), the Wor ld Bank, FA0 and other international agencies and donors funding livelihood rehabilitation and agricultural development projects in Barisal and Khulna Divisions (e.g. Danita, EU and SDC). Representatives f rom the Implementation, Monitoring and Evaluation Div is ion o f the ERD, the Finance Divis ion o f the Planning Commission will also be invited to attend the CCC. The Component’s Chief Technical Adviser (based in Dhaka) and Component Coordinator (based in Barisal) will be ex of f ic io members o f the CCC, with responsibility for meeting organization and minute taking.
9. The CCC will have direct responsibility for ensuring that the Component i s implemented as designed and efficiently and effectively according to agreed work plans, particularly through close coordination with a l l relevant agencies in their respective districts and upazilas, and to minimize bureaucratic bottlenecks. The CCC will meet o n a quarterly basis; approve work plans and review progress and results achieved.
10. The Component Management and Co-ordination Unit (CMCU) will be placed, institutionally, in the FAO/Emergency Rehabilitation Coordination Unit (ERCU) in Dhaka. Headed by an international Chief Technical Adviser appointed by FAO, the C M C U will work on a full-time basis both out o f Dhaka and in the FAO/ERCU Field Office in Barisal. I t will be responsible for the day-to-day co-ordination o f
67
al l Wor ld Bank-funded activities, including individual project interventions by implementing partners such as DAE, DOF, and D L S at divisional, district and papilla level, NGOs and other public and private sector service providers. The CMCU will assume responsibility for overall coordination and implementation o f the agricultural recovery program, including the management o f financial and human resources, selection o f communities to benefit from project matching grants for l ivelihood rehabilitation and training, contracting o f implementing partners and service providers, procurement o f agriculture inputs, and monitoring and evaluation. The C M C U wil l comprise Headquarters and Divisional representatives o f DAE, D o f f and DLS. In addition to the CTA, the CMCU will be staffed with a national Component Coordinator; Community Development, Monitor ing and Evaluation, and Procurement Specialists; as wel l as a Senior Accountant appointed by FAO.
1 1. The CCC would provide oversight and co-ordination in implementation o f the project. The CCC would have direct responsibility for ensuring that the Component i s implemented as designed and efficiently and effectively according to agreed work plans, particularly through full co-ordination with a l l relevant agencies in their respective districts and upazilas, and to minimize bureaucratic bottlenecks. In this respect, CCC would approve work plans and review progress and results achieved. The CCC would meet o n a quarterly basis, but have n o role in the day-to-day operation o f the Component.
12. T w o Sub-Component Implementation Cells (SCICs) in the FAO/ERCU Fie ld Office, Barisal, will be responsible for the coordination and supervision o f day-to-day activities under the crops sub- sector and the fisheries and livestock sub-sectors, respectively, in the field. The SICS will coordinate activities with the six district Departments o f Agrtcultural Extension, Fisheries and Livestock Services through their assigned focal points, who will be accessible and available whenever support i s required. The FA0 will work in close coordination with the existing District and Upazila Agmul tura l Rehabilitation Committees established by the MOA. The SCICs will comprise short-term international consultants and full-time and part-time national consultants and administrative support staff appointed by FAO. The national consultant Agronomist and Livestock Production Specialist will act as Cel l Team Leaders.
13. At community level, the primary vehicle for restoring agrtcultural production would be the implementation o f community-driven development and participatory research and extension processes through support to formal and informal farmer groups and CBOs, including those ones that are being established and supported by the ongoing Social Investment Program Project (SIPP). The Project would be implemented through existing community-based farmerdfishers’ groups (e.g. IPM and ICM clubs, water users associations and common interest groups) established through “farmer f ie ld school’’ approaches, and CBOs o f SIPP. These would serve the purposes o f selecting the most impoverished beneficiaries, distributing agricultural inputs and facilitating training activities. Many o f these clubs and FFSs have established networks o f union-level farmers’ associations and produce and marketing CBOs responsible for developing and managing input supply and marketing systems, articulating the demands o f the members and member clubs, and preparing further development proposals. These CBOs would a l l receive further training in group dynamics, small-scale processing and storage, produce marketing and business management as wel l as improved production technologies in their respective sub-sectors. In priority areas where there are n o such CBOs, the component would assist farmers and fishers to establish new clubs and farmer groups as wel l their federated union farmers associations and producer and marketing CBOs.
14. The actual delivery o f program goods and services at the community level, including beneficiary identification, would be carried out through partner NGOs, who would be contracted by FAO. These could be both national and local NGOs, depending on the requirements and the scope o f each individual intervention. The SCICs, with support o f local authorities and the Departments o f Agricultural Extension, Fisheries and Livestock Services at the upazila and union levels, would closely monitor NGO activities.
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The Departments o f Agricultural Extension, Fisheries and Livestock Services f rom the upazila and union levels would also assist the SCICs with technical support to the strengthening o f I P M and ICM clubs, water users associations, common interest groups, fanners associations and producer and marketing CBOs and technology transfer t o farmers and fishers.
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Implementation Arrangements for the Agricultural Recovery Component
ECRRP
I I
I Ministry of Fisheries and Livestock 1
I I
I I I
7 Department of Emergency Department Department of
Agricultural Extension Rehabilitation of Fisheries Livestock Services (DAE) Co-ordination Unit
Component
Dhaka & Barisal DAE (focal point) Management Unit; DoF focal point)
I 4 4
Component Component v Implementation Implementation DoF
Regional Offices (2) Cell; Cell; Barisal Divisional Offices (2)
and improvement Committees (13)
c- NGOs
Associations 113 CBOs (113)
Farmers' Groups FarmrsIFishers' BiockUnits (39) Groups (855)
Landless, Marginal and Smaii Farmers, Livestock Rearers, Capture Fishers & Fish Farmers
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Implementation Arrangements for Components B, C and Sub-Components D2 and D3
15. The LGED and the BWDB wil l be responsible for the implementation o f Components B and C respectively. In addition, the BWDB will be responsible for the preparation o f future national projects such as River Bank Improvement Project (RBIP), Gorai River Restoration Project and Coastal Embankment Improvement Project (Component D2). The LGED will be responsible for the preparation o f future national project on Cyclone Shelter Construction and Rural Road Improvement (Component D3). These agencies are the leading government agencies that are mandated to carry out the nature of rehabilitation and new construction works (cyclone shelters and coastal embankments) planned under the Project. These agencies have established organizational arrangements with qualified and experienced staff across the country. Therefore Heads o f these agencies (LGED and BWDB) will take primary responsibility for the planning and implementation o f the physical works o f these Components B and C. However, the implementation o f subcomponents o f Component D 2 and D 3 includes preparation o f feasibility studies for future national projects which will require long term strategic vision and planning. Each agency wil l h i re an international consultancy firm for the preparation o f future projects that fa l l within the agency mandates. Therefore, the implementation o f these specific studies would be housed in and overseen by the respective planning units o f the two agencies to ensure integration with the other programs, continuity, and close coordination with other governmental and nongovernmental stakeholders interested in those programs.
16. Each Agency would also hire an international consultancy firm through competitive selection to assist the field staff in engineering surveys, designs and construction supervision including quality assurance, preparation o f biding documents, and f inal certification o f the quantity and quality compliance o f the works completed by the c i v i l works contractors. In addition, the Consultants will assist the agencies in the procurement process for the selection o f c iv i l works contractors and contract management as an independent party as “Engineer” for contracts subject to prior review. The f ie ld level engineering staff o f the agencies will carry out the physical works adopting the established administrative practices and procedures, c iv i l engineering norms for surveys, design, and construction quality control. However, procurement administration and financial management for a l l project activities are governed by the provisions o f the Financing Agreement for the IDA Credit for the project, which are elaborated in respective sections o f this Project Paper.
17. T o assist the heads o f the agencies in the execution o f the project activities, a small implementation cell would be established within the headquarters to plan, coordinate and monitor Component B/C related project implementation with f ie ld units, administer major consultancy, goods and c i v i l works contracts, and operate the special accounts for the respective agencies, and to liase and coordinate with the planning units responsible for implementation o f subcomponents D2/D3. Each o f these implementation cells would be headed by a full time Director, either deputized by the agency head or hired locally. Each implementation cell wil l also include a full time Financial Management Specialist who wil l be responsible for assisting in operation o f the designated Special Account, maintaining agency- specific project level financial records, accounts and reports, and auditing. I t wil l also include a small team o f full time core and support staff to assist the Director in monitoring o f the agency specific project activities in the field, contract administration, preparation o f progress and other reports, and financial management.
18. For the purpose o f the project, the Director o f the Implementation Cel l will report directly to the Project Director o f the Project Coordination and Monitor ing Unit (PCMU) o f the Min is t ry o f Planning. The Director will prepare and send to the PD (PCMU), annual and quarterly work plans, budgets, progress reports, and financial reports and various other reports and information requested by the PD and the M&E Consultants f rom time to time. In order to facilitate the implementation oversight, coordination and monitoring o f the project activities by the PCMU, al l official day to day communication between the
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Director o f the implementation cell and the Project Director o f the P C M U wil l take place directly but such communication being copied to the respective Agency Heads and Secretaries o f the respective Ministry for information. Policy matters that require clearances o f the respective Agency Heads and Secretaries taken up and resolved at the Project Steering Committee.
Implementation Arrangements for Component D1
19. The DMB will be responsible for implementation o f Component D. The DMB i s currently implementing a long-term “Comprehensive Disaster Management Program (CDMP)” in association with UN, DfID and European Commission (EC). The second phase o f the C D M P i s under preparation for donor funding. This component would entail supporting the CDMP approach and efforts towards the development o f C R A and RRAP at the union level, aggregating into Upazil la level and further into district level C R A and RRAP. Structural and nonstructural priorities determined through this ‘bottom-up’ approach, and centrally compiled and recommended by Disaster Management Committee (DMC) at various levels, could then help identify, prioritize, and implement appropriate r i s k reduction interventions at various administrative levels. Therefore, the implementation o f the project activities would be housed in and overseen by the respective units o f the DMB to ensure continuity and close coordination with other governmental and nongovernmental stakeholders interested in those programs. However, the Director General wi l l assign a full time Director f rom the DMB to oversee and implement the activities and report to the PCMU. In addition, a full time Financial Management (FM) Specialist with a small group o f staff will be assigned. The FM Specialist will be responsible for assisting in operation o f the designated Special Account, maintaining agency-specific project level financial records, accounts and reports, and auditing.
Implementation Arrangements for Components E and F
20. The Ministry o f Planning i s responsible for the overall coordination and monitoring o f the project through the implementation of Components E and F through the PCMU. On behalf o f the Secretary, Ministry o f Planning, the Div is ion Chief (Programming) o f the Planning Commission will oversee the PCMU. The PCMU will be headed by a full time Project Director (PD) either deputized by the Planning Ministry or hired locally. The PD will be assisted by a full time small group o f core professionals including a Procurement Specialist, Financial Management Specialist, M&E Specialist, and Coordinator for training and special studies, and Administrative Officer. This s taf f will have to be hired f rom local market. This core staff will be assisted by a small team o f 1-2 senior counterpart staff t o each o f the specialists. The counterpart staff will be deputized by the Planning Commission. The purpose i s for the counterpart staff arrangement i s for them to work closely with the specialists to be able to acquire sk i l l s and develop capacity internally. A small group o f support staff, either deputized or locally hired, also would be required to assist the specialists and counterpart staff.
21. The P C M U will hire FA0 o n single source basis and international M&E Consultants Team through international selection process. The P C M U wil l also be responsible for management o f the two consultancy contracts signed between the Ministry o f Planning and the FA0 and M&E Consultant. However, while the FA0 will be reporting directly to the PD, the M&E Consultant wil l not report to the PD. Instead, the latter wi l l report to the PSC to ensure impartiality o f monitoring and reporting directly to PSC.
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Monitoring and evaluation o f outcomes/results
22. Component Directors o f the LGED, the BWDB, the DMB and the Team Leader o f the FA0 will submit quarterly and annual work plans, budgets, progress reports, Financial Management Reports in appropriate formats to the PCMU. Quarterly reports should be submitted n o later than three weeks after the end o f each quarter and annual reports n o later than 12 weeks after the end o f the year. The quarterly report would cover the progress and expected completion date for c iv i l works and equipment/goods contracts, progress o n institutional components, training and studies, and activities o f the project implementation consultants, M&E, other technical, procurement and financial management consultants. The reports would also cover financial and procurement information, including: (i) comparison o f actual physical and financial outputs with forecasts, and updated six-months project forecasts; (ii) project financial statements, including sources and application o f funds, expenditures by category statement, and designated account reconciliation statement for Designated Account (DA); and (iii) a procurement management report, showing status and contract commitments.
23. P C M U with the help o f implementing agencies will also prepare consolidated annual reports by n o later than March 3 1 o f each year o f project implementation. The report will cover: (i) the progress o f each component, implementation o f key features o f the strategies and studies, key performance indicators, operation o f project facilities, and financial statements; and (ii) the Annual W o r k Program for the fo l lowing Fiscal Year, annual funds required for implementation with breakdown o f each financier, an updated disbursement profile, planned actions for mitigating negative effects during construction, and target indicators for the coming year. The Annual W o r k Program for the next Fiscal Year would be finalized by M a y 3 1 o f each year. A mid-term review o f the Project would be undertaken by December 1, 2010. An Implementation Completion and Results Report (ICRR) would be submitted to the Bank, n o later than six months after the closing date.
24. An independent M&E consultancy, financed under Component E, will report to the PSC and i s responsible for overall monitoring and supervision o f the implementation and impact o f various sub- components. They will also supervise implementation o f the overall EMF/SIMF, review and monitor for each sub-projects the specific social and environmental management plans and supervision o f their implementation. The M&E activities are l ikely to cover, but not l imited to: (i) the impact o f the disaster risk reduction measures on the communities at various levels, change in the level o f protection, resilience to cope and manage the disasters; (ii) impact o n various productive activities agriculture, livestock, fisheries, shnmp, trade and industry, and impact on health and environment; (iii) environmental and social impact o f construction activities in the project area in particular o n any wetlands, ecologically import sites, population and livestock; (iv) any acquisition o f public and private land and assets, agreements reached and arrangement made for acquisition o f assets; (v) socio-economic impacts and the impact on the level o f employment, l ivelihood and household incomes in the project area; estimation o f the project’s overall benefits and economic rate o f returns etc. M&E would be carried out using latest technology such as satellite imagery and GIS systems, where necessary.
25. Monitoring o f the environmental and social indicators, outlined in the Environmental Management Framework (EMF) and the Resettlement Policy Framework (RPF), will be conducted by a monitoring team. The monitoring team wil l collect the required information annually by making f ie ld visits, consulting official sources, and interviewing key informants. Information thus collected will be further discussed and verified in open forums such as a Participatory Rural Appraisal (PRA) sessions.
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.............................
Planned Actual Decision Review Meeting
Bank staff and consultants who worked on the project:
08/19/2008 08/21/2008 Appraisal Negotiations
08/24/2008 08/21/2008 08/30/2008 09/04/2008
I Zahid H. Khan I Sr. Urban hecial ist I SASDU I
Board/RVP approval Planned date o f effectiveness Planned date o f mid-tern review Planned Closing date
10/09/2008 11/06/2008 1210 1/2008 1211 0120 10 06/30/2013
Additional Primary JDLNA Team Members
Name Masood Ahmad Burhanuddin Ahmed Nihal Fernando Shah1 Ahmed Ferdausi Tanvir Hossain
Title Unit Lead Water Resources Specialist and TTL SASDA Sr. Financial Management Specialist SARFM Sr. Rural Development Specialist and Co-TTL SASDA Environment Specialist SASDN Procurement Snecialist S A R P S
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Nadia Islam I Program Assistant Z a h l Islam I Lead Procurement Specialist
SASDO SARPS
Jonathan Mills Lindsay Meena M. Munshi
Sr. Cousel LEGEN Sr. Economist SASDA
Henrike Brecht Anna C. O'Donnell Roberto Jovel Ayaz Parvez Doekle Geert Wielinga
Consultant GFDRR Consultant SASDA Consultant GFDRR Consultant SASDU Consultant GFDRR
Annex 8: Environmental and Social Safeguards Framework Bangladesh: Emergency 2007 Cyclone Recovery and Restoration Project
Introduction
1. In view o f the emergency nature o f the Project (processed under OP 8.0), and the proposed areas for Bank financing, a full-fledged Environmental and Social Assessment was not carried out. Nevertheless, a rapid environmental and social assessment was undertaken as part o f the damage, losses, and needs assessment exercise. On the basis o f this assessment, and consideration o f the emergency nature o f the Project, the Project is classified as a Category ‘B ’.
2. The potential negative environmental and social impacts o f the Project are expected to be negligible, since it primarily supports rehabilitation o f damaged infrastructure and facilities. T o ensure overall environmental and social sustainability o f the Project, an Environmental Management Framework (EMF) and SocialResettlement Policy Framework (SRPF) will be prepared within 4 months o f project launching and to be cleared by the Wor ld Bank. The Frameworks wil l separately assess the environment and social impacts o f Component A, B & C and will serve as a set o f guidelines to be used for projects where the precise nature and scale o f sub-projects are l i t t le known or unknown in advance. These guidelines will serve as a tool to select the optimal project intervention f rom social and environmental perspectives, prepare preliminary designs, and to ensure complete integration o f social and environmental concerns and mitigation measures in the design for the activities to be undertaken by project implementing agencies.
3. In general, the EMF and SRPF will provide a set o f policies, acts, rules, procedures, programs, and institutions that collectively work towards protecting and enhancing the attributes o f the environment and persons that may be impacted by the activities undertaken in the Project. Various mitigation measures will be outlined to minimize environmental impacts and fair compensation mechanisms should residual impact be unavoidable. Moreover, the EMF and S R P F will provide screening, monitoring, and post-evaluation mechanisms so that any present or future impact can be identified and resolved quickly.
4. In accordance to the EMF and SRPF, environmental and social assessments (EAs, SAs) will be carried out (and cleared by the Bank) for a l l subprojects i.e., rehabilitation works and new construction activities (e.g. new disaster shelters, extension o f o ld disaster shelters or realignment o f embankments) along with detailed surveys and designs. Based o n the assessment, environmental management plans (EMP) and social management plans (SMP) will be prepared, which will highlight mitigation measures for al l potential adverse impacts.
5. The implementing agencies i.e., Food and Agnculture Organization (FAO), Local Government Engineering Department (LGED) and Bangladesh Water Development Board (BWDB) already have experience in implementation o f Bank projects and EMPs and SMPs in accordance with Bank guidelines and procedures. Building upon these experiences with similar types o f project activities e.g. Water Management Improvement Project (WMIP), Flood Restoration and Recovery Assistance Program (FRRAP), Municipal Services Project, Rural Transport Improvement Project and Avian Influenza Preparedness and Response Project, the Project specific EMF and S/RPF will be developed. For instance, the EMF and S/RPF agreed upon with the GOB under the WMIP highlights the range o f environmental (e.g. local drainage patterns changed) and social (e.g. land acquisition) issues that may arise with these types o f c iv i l works activities and possible mitigation measures. Depending on the site-specific details, many o f these measures will be applicable in this Project (Component C & B). T h e EMF and S R P F will be prepared and agreed with the Bank prior to issuing any construction contracts under the Project. The sub-project or scheme specific EMPs and SMPs will be guided by the EMF and S/RPF and will provide site-specific details and mitigation measures.
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6. Ensuring compliance will also be facilitated by a separate independent M&E consultancy (financed under sub-component E) that will report to the PSC and i s responsible for overall monitoring and supervision o f the implementation and impact (including environmental and social) o f various sub- components and individual EMPs and SMPs. They will also supervise implementation o f the overall EMF and SRPF, review and monitor for each sub-projects the specific social and environmental management plans and supervision o f their implementation.
Potential environmental impacts and mitigation measures o f activities under Project
7. The rehabilitation and construction o f embankments and disaster shelters may create adverse impacts o n the environment that are created during different phases o f the project cycle such as construction, operation and maintenance (O&M), and decommissioning. Some o f these impacts are small, local and can be mitigated. Some other impacts are larger and may persist for a long time. The technical support to crop, fishery and livestock sub-sectors also may have some environmental impacts. A l i s t o f possible environmental impacts i s given in Table 1 below.
Table 1 Possible environmental impact of infrastructure and agriculture activities
Activities
Land acquisition
Construction site activities for infrastructure
Construction andor rehabilitation o f Embankment, roads and disaster shelters
Possible impacts
Displacement o f people
Loss o f agricultural landforest' wetland
Loss o f biodiversity
Water and land pollution due to disposal o f sewage and solid waste
Water pollution f rom leakage o f o i l and chemicals
Crowd, Dust and Noise
Loss o f productive land
Changes in physical and biological environment
Loss o f flood plain habitat (nursery ground) o f aquatic species
Impact on f i sh migration and navigation
Nature of impact Major, local, long term; may be irreversible.
Magnitude depends o n the scale o f the project, local, short/medium term.
Major, local / regional, long term.
Mitigation measures
Resettlement action plan
Compensation, forestation, sanctuaries
Plantation programs
Labor shed with sanitation and waste disposal facilities
Preventive measures against any leakage
Use o f local labor, Dust suppression measures, work scheduling considering local issues
Compensation
Proper hydro-geological study and restoration o f local species
Restore connectivity through regulators, excavation o f connecting channels
Fish pass structures and navigation gates
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Activities
Agricultural recovery
Possible impacts
Loss o f natural connection between the r iver and wetlands inside the project
Water logging in polder areas
F l o w diversion structures can cause bank erosion and sedimentation further downstream
Soil and water pollution due to use o f chemical pesticides and fertilizers during production, storage and processing (contamination o f ground and surface water sources through seepage and runoff, increase acidity o f the soil due to prolonged use o f fertilizers)
Monoculture o f high value crops leading to deficiencies in soil nutrient status and depletion o f soil fertility due to intensive farming
Potential social conflict with other occupational groups - farmers vs. fishers
Nature of impact
M a j or/minor, local / regonal, long term.
'M= Integrated Pest Management, IPNMS= Integrated Plant Nutrient Management System
Mitigation measures
Proper operation o f regulators for retaining desired water level inside, establish sanctuaries
Drainage channel with flushing activities
Appropriate protection works considering local hydro-geological condition
Use o f organic manure (compost), bio-fertilizers (mulching, vermin-compost etc) and bio-pesticides will be promoted. Soil tests will be analyzed for the requirements o f fertilizers.
Use of IPWIPNMS practices for the management o f nutrient and pests o f the crops will be promoted
Rice-fish farming, appropriate regulation and operation considering different types o f use
8. The impacts l isted above are "direct" and largely "internal" to the project area. These are relatively easy to identify, monitor and mitigate. However, some other impacts are expected to be felt outside the project area. Such impacts may be categorized as "external" and "cumulative" impacts, and should be identified, quantified and monitored separately in addition to the direct impacts listed in Table 1 above. These external impacts usually are the outcome o f multiple activities and projects often implemented by multiple organizations. Thus, the various implementing agencies (e.g. FAO, BWDB, and LGED) should coordinate through the PSC to identify and assess such impacts. Information collected o n cumulative impacts should be recorded, stored and monitored by the M&E consultants.
K e y features of the proposed EMF
9. The EMF o f the proposed project will cover (i) the both component wise and overall assessment and management o f the project; (ii) the potential cumulative impacts o f rehabilitation o f the embankments to the regional hydrological regime; and (iii) the institutional mechanisms for different implementation
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agencies to ensure environmental considerations, as wel l as prevention, mitigation and management aspects that wi l l be operationalized and institutionalized. The mitigation measures to be incorporated in the design o f the rehabilitation will need to be clearly stated in the contractual documents.
10. The EMF should primarily be in the form o f a screening and mitigation framework (customized for each type, location and scale o f activity) and corresponding institutional framework, to be in place during selection, implementation and monitoring and evaluation o f the diverse investments proposed in the project. When a potential impact i s identified during the assessment, the EMP will include prevention and mitigation activities that can be incorporated in the design and plan o f the rehabilitation and integrated water management process. Detailed case studies will be developed in order to guide the process o f the EA and associated EMP preparation. The manual and guidelines identify the possible environmental impacts and provide straightforward, easy to fo l low plans, guidelines and manuals that can be used by the communities and field staff to assess and manage their respective schemes. Each environmental impact indicator will be matched with a corresponding mitigation measure to facilitate implementation.
Potential social impacts of activities under the Project
11. The major physical works, especially for the construction o f new disaster shelters (and in some cases the rehabilitation o f embankments) may invoke OP 4.12 o n involuntary resettlement. Although most o f the c iv i l works are expected to be carried out on GOB land, i t i s assumed that works on some embankments and for new disaster shelters may require use o f private lands. I t i s also possible that the c i v i l works may temporarily affect people who may have been using the embankments, especially the sections used as roads and pass through villages, to l ive o n and/or make a living from.
12. Based o n previous f ie ld investigation o f some embankments and shelters, and the general nature o f anticipated rehabilitation and improvement works it i s assumed that the physical works are highly unlikely to cause any significant adverse impacts, as the works will largely remain l imited to the lands already used for the embankments. Use o f private lands, wherever needed, i s generally expected to be in strips along the existing facilities. Land requirements are also l ikely to be l imi ted where embankments, if any, are to be retired, and the associated impacts are unlikely to be severe because o f the linearity o f the embankments. For new disaster shelters take under the Project (depending on the site specifics), acquisition o f land may be required.
Land acquisition
13. The specifics o n land acquisition and associated impacts will only be known after the design for site-specific activities are completed. T o address these impacts, the Project will develop a Resettlement Policy Framework (RPF) which follows the Bank OP 4.12 o n Involuntary Resettlement. Recent examples o f RPF may provide guidance as similar issues will arise in this Project and previous. For instance, the RPF used for the River Bank Protection Project (Cr. 2791-BD) and Coastal Embankment Rehabilitation Project (Cr. 2783-BD), and the Rural Transport Improvement Project (Cr. 3791 -BD) may provide a sufficient ‘framework approach’ to implementing a resettlement action plan. This RPF wil l provide the basis to prepare separate Resettlement Act ion Plans (RAP) for site-specific works packages as the batches o f embankments and shelters are selected for rehabilitation and improvement. These site- specific RAPS will be subjected to Bank review and approval before the c iv i l works packages are accepted for Bank financing.
14. framework outlining the principles and guidelines to be used to acquire lands from private ownership and resume public lands from authorized and unauthorized private uses, and to compensate the owners and users for their losses;
The Resettlement Policy Framework contains: (i) land acquisition
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(ii) detailed policy matrix defining the compensatiodentitlements, entitled persons, application guidelines and institutional/organizational responsibility to implement the policies; (iii) an organizational framework to plan and implement resettlement activities in general, and in particular to identify the scheme-specific impact details, as wel l as to perform the process tasks related to pol icy revisions, budgeting, work planning, and the like; (iv) grievance redress procedure to deal with potential disputes and complaints related to land acquisition and planning and implementation o f the resettlement activities; (v) a planning process defining the tasks leading to preparation o f the FCDECDI specific land acquisition plans, identification o f the impact details, preparation o f resettlement budgets and time-schedule for RAP implementation, etc; and (v) a monitoring and evaluation framework to be used for land acquisition and preparation and implementation o f the phase-wise RAPS.
.
15. The FWF will provide the basis to prepare separate RAPS for each yearly c i v i l works program, and will contain the details o f the impacts and impacted persons, budget and the implementation time- frame. The RAPS will be subject to review and approval by IDA.
Implementation of safeguards
16. Ensuring compliance will also be facilitated by a separate independent M&E consultancy (financed under component E> that will report to the PSC and i s responsible for overall monitoring and supervision o f the implementation and impact (including environmental and social) o f various components. They will also supervise implementation o f the overall EMF and S/RPF, review and monitor for each sub-projects the specific social and environmental management plans and supervision o f their implementation.
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Annex 9: Documents in Project Fi le Bangladesh: Emergency 2007 Cyclone Recovery and Restoration Project
Bangladesh Water Management Improvement Project - Environmental Management Framework (BWDB, March 2004)
Bangladesh Water Management Improvement Project - Social Management Framework and Resettlement Policy Framework (BWDB, March 2004)
= Bangladesh Water Management Improvement Project - Project Appraisal Document (Bank, 2007)
Joint Damage, Loss, Needs Assessment Report plus Annexes on Cyclone Sidr (A report prepared by the Government o f Bangladesh assisted by the World Bank, United Nations Agencies, and the International Development Community, with financial support form the Europeans Commission, 2007)
2007 Flood Damage, Loss, and Needs Assessment (Bank, 2007)
Emergency Livelihood Protection and Rehabilitation Program Appraisal Document, Food and Agnculture Organization (FAO) o f the United Nations (January 2008)
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Annex 10: Proposed Long Term Disaster Risk Reduction Program Bangladesh: Emergency 2007 Cyclone Recovery and Restoration Project
Country Risk Profile
1. Regular annual flooding has traditionally been beneficial for the economy and local livelihoods, while l o w frequency but high magnitude floods can have devastating impacts. Recent major floods occurred in 1978, 1988, 1998, 2004 and 2007.5 The country also remains one o f the worst victims o f cyclone casualties in the world. In addition, riverbank erosion affects many people and results in the loss o f areas o f productive land annually. Droughts have also been a common occurrence over the years. Other major hazard r isks to the country include earthquakes, tsunamis, high arsenic concentrations in the ground water, water logging, and salinity in the coastal areas.
2. Bangladesh i s located in a seismically active and high risk region. However, despite an obvious need for, seismic risk awareness, mitigation, and reduction, these have not been mainstreamed into the country’s core disaster management agenda and strategy. There i s an equally great need for the country to urgently start devising and implementing major preparedness interventions and capacity building efforts.
3. Bangladesh i s currently ranked as the most climate-vulnerable country in the wor ld (World Bank 2005). The Inter-Governmental Panel o n Climate Change projects that climate change i s l ikely to increase both the frequency and intensity o f cyclones in the Bay o f Bengal and alter the depth and spatial extent o f flooding in the Ganges-Brahmaputra-Meghna Basin. This has important implications across al l sectors (such as agriculture, housing, transport) and consequently o n economic development and poverty. Added to these r isks are the l ikely consequences o f rising sea level, could cause future economic losses o f an unprecedented magnitude in low-ly ing Bangladesh.
Country Strategic Approach and Institutional Arrangements for Disaster Management
4. Over time, the country’s abil ity to manage disaster risks, in particular floods and cyclones, has evolved and improved, especially since the 1991 cyclone that claimed nearly 140,000 lives. This has been the result o f a gradual shift f rom a response-based approach to a strategy that incorporates elements o f greater emergency preparedness and r isk mitigation. Bangladesh’s Poverty Reduction Strategy Paper provides for strengthening disaster management and risk reduction, mainstreaming DRR into national policies and developmental processes, and enhancing community capacity for disaster preparedness and risk reduction.
5. The present national strategy for disaster management, although in an early phase o f implementation, i s based on three key elements including: (i) defining and redefining the r i sk environment, entailing systematic and improved hazard analysis and vulnerability and community risk assessments; (ii) managing the risk environment, including the achievement o f a balance between risk reduction options and mainstreaming r i s k reduction across sectors through pol icy and planning reform and capacity building; and (iii) responding to the threat environment, including activating systems and mobil izing resources; uti l izing vulnerability and r i sk databases for emergency response planning; and maintaining effective communications and early warning systems.
6. Further, the Draft National Plan for Disaster Management (NPDM, 2005-15), i s aligned with the objectives and priorities for action identified under various international conventions, such as the Hyogo Framework for Act ion (HFA) 2005-1 5, the United Nations Framework Convention o n Climate Change (UNFCCC), and particularly, the SAARC Framework for Act ion (SFA) 2006-15. The NPDM has already been approved by a wide stakeholder group comprising Government and non-Governmental organizations and academic institutions, and by the IMDMCC, and now awaits cabinet consideration and
Most o f the statistics quoted in the following sections have been excerpted from the Draft National Plan for Disaster Management, 2007-15
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approval. The NF’DM i s centered around the following strategic priorities and goals: (i) professionalizing the present disaster management system; (ii) mainstreaming disaster r isk reduction; (iii) strengthening institutional mechanisms for disaster management; (iv) empowering at-risk communities; (v) expanding risk reduction programming across a l l sectors and al l hazards; (vi) strengthening emergency response systems, and; (vii) developing and strengthening networks for disaster management.
7. The National Disaster Management Council (NDMC), headed by the Prime Minister, i s the highest-level forum for the formulation and review o f disaster management policies. The Inter- Ministerial Disaster Management Coordination Committee ( IMDMCC) i s in charge o f implementing disaster management policies and decisions o f the NDMC, assisted by the National Disaster Management Advisory Committee (NDMAC). The Ministry o f Food and Disaster Management (MoFDM) i s the apex institution responsible for coordinating national disaster management interventions across a l l agencies. Details on the structure o f the MOFDM, and the various sub-national disaster management committees are provided in the Annex.
8. The Comprehensive Disaster Management Programme (CDMP), under the auspices o f the DMB, i s undertaking a number o f interventions aimed at strengthening and improving disaster management and risk mitigation capacities at various levels, and in promoting and implementing the national strategic priorities and plans set out by the Government. It i s funded by DFID, UNDP, and the EC. The program has started to make significant contributions to the areas o f capacity building, professionalizing disaster management, partnership development, advocacy for mainstreaming disaster risk reduction across sectors, community empowerment for disaster risk reduction, and strengthening response management. The CDMP has met with particular success in implementing Community Risk Assessments (CRAs), community-level Risk Reduction Act ion Plans (RRAPs), and small-scale r i s k mitigation interventions funded through the Local Disaster Risk Reduction Fund (LDRRF) in seven pi lot districts.
Needs Assessment for Disaster Response Management in the Light o f Recent Lessons
9. The key lessons learned and needs identified f rom the recent Cyclone Sidr response include the following: (i) improving, training and strengthening the Cyclone Preparedness Program (CPP) volunteer force and streamlining i t s management; (ii) hrther strengthening and institutionalizing disaster preparedness, especially among the various sub-national disaster management committees; (iii) mobilizing adequate response resources for improving provision o f basic facilities and rel ief provisions in cyclone shelters, and search and rescue equipment to local Government teams and other partners; (iv) mainstreaming disaster risk reduction and mitigation across sectors and down to the lower levels o f governance; (v) tahng stock o f deficiencies in key cyclone r i s k mitigation infrastructure such as cyclone shelters, access to cyclone shelters, and coastal and r iver embankments; (vi) strengthening local communication systems through the provision o f modem, disruption-free communication equipment to key disaster management focal points, and; (vii) community training in interpretation o f early warning signals and in fol lowing evacuation protocols and requirements, through sustained public information and behavioral changehensitization campaigns.
Proposed Risk Mitigation Strategic Framework and Action Plan - Moving from Risk to Resilience
10. The proposed disaster r i s k reduction framework combines the broad strategic priorities and goals contained in the NPDM (2007-15), as wel l as contemporary strategic elements for disaster risk mitigation in the international arena. These can essentially be distributed across the following f ive strategic pillars: (i) risk identification and assessment; (ii) strengthening and enhancing emergency preparedness; (iii) institutional capacity building; (iv) risk mitigation investments; and (v) introducing catastrophe risk financing in the longer term (Figure 1). The underlying principles o f this framework are that both loss o f l i f e and the economic impact o f disasters can be reduced through advance planning and investment. Further, the strategic framework and action plan should be both affordable and delivery-efficient.
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Pillar 1: Risk Identification and Assessment
11. Bangladesh has already done a substantial amount o f work assessing the r isks due to major disasters, particularly for recurrent floods and cyclones. A series o f studies was carried out in the 1990s, backed by thorough analysis to manage floods that resulted in the Flood Act ion Program (FAP). These studies consist o f 27 detailed studies spanning several volumes o f reports. Similarly, there have been many assessments, studies, and strategies developed for managing cyclones, the coastal zone, and general risk reduction. However, some natural disasters, such as earthquakes, have rarely been considered in these assessments. Moreover, given the potential for long-term climate change concomitant with changes to existing climate variability, i t i s crucial t o update the r i s k assessments for various regions and zones o f the country and prepare detailed hazard risks maps for each district, upazilla, and union in the country.
Figure 1 : Disaster Risk Management Framework6
IPillar 1 Risk Identificationand W v L
I . . I . . I
Ex-Ante Fund Catastrophe I Reserve Funds Contingent Capital Faci ty
Pil lar4 Rlsk M
Hazard Specific Risk Mitigation Climate Change Adaptation Programs
Pillar 2: strengthening
Disaster forecasting
Institutionalizing disaster preparedness Building disaster s h e b
Local communication systems
illar 3: Institutional Capaci Decentralized Emerge
Community Participatio Legislative Framework Training, Education and Knowledge
International Cooperation
Detailed, national level multi-hazard risk and vulnerability assessment and modeling
12. During the last 150 years, several major earthquakes with a magnitude greater than seven o n the Richter scale have affected Bangladesh, two o f which (with their epicenters within the country) caused considerable damage. Recent studies indicate that at least one higher magnitude earthquake i s overdue along the plate boundaries within Bangladesh. Such an event would have catastrophic effects in the country's; largest and most densely populated cities. However, earthquake r isks are l i t t l e known among policymakers and the public, and implementation o f earthquake mitigation measures has not yet taken
World Bank Disaster Risk Management Series No. 9 " Preventable Losses - Saving Lives and Property "
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root. W h i l e there i s sufficient knowledge o f f lood management to identify r i sks and generate hazard maps for each union or village in the country, more work i s needed to assess earthquake risks.
13. Based on existing studies and new data acquisition, a national level multi-hazard risk and vulnerability assessment and modeling should be undertaken. This work can help integrate disparate local studies and identify key knowledge gaps. The proposed assessment should develop national level and administratively disaggregated modules and models for: (i) spatial and temporal mapping o f a l l hazards and development o f probabilistic future models; (ii) asset and population exposure; (iii) vulnerability o f different asset types; and (iv) loss analysis for estimating monetary losses for each division o f the geographical area covered. The understanding o f potential economic losses will help the country review physical, human, and financial exposures; in determining levels o f acceptable r isks and those to be mitigated; and in updating emergency plans and procedures and developing appropriate capacity building programs.
Supporting community risk assessments at the district, Upazilla and Union levels
14. T h i s component would entail supporting the CDMP approach and efforts towards the development o f CRA and RRAP at the union level, aggregating into Upazilla level and further into district level CRA and REUP. Structural and nonstructural priorities determined through this ‘bottom-up’ approach, and centrally compiled and recommended by Disaster Management Committee (DMC) at various levels, could then help identify, prioritize, and implement appropriate r i s k reduction interventions at various administrative levels. Such interventions could possibly be financed through instruments such as the LDFUW, further expanded through Government and multi-donor sources.
Pillar 2: Strengthening and Enhancing Emergency Preparedness
Disaster forecasting and warning
15. The disaster warning systems have to be improved to provide a more effective coordinated response. In this context, the Flood Forecasting and Warning Center (FFWC) under the Ministry o f Water Resources, should be given a prominent role, technology-upgraded, and capacity-enhanced (for example, by use o f satellite imagery to improve flood forecasting). Similarly, the forecasting system for cyclones, which i s managed by the Metrological Department under the Min is t ry o f Defense, needs strengthening, and i t s work coordinated with the M o F D M and FFWC. Moreover, the CPP needs upgrading, by providing equipment, s ta f f and training; it also needs improved linkage with local Governments. The communication system also has to be improved for f lood warning and combined with the cyclone warning system to improve dissemination o f early warnings and information to communities. The disaster information management system (being developed under CDMP) would have to be expanded to the district and Upazilla levels.
Construction of new, and rehabilitation of existing, disaster shelters
16. Over time, multipurpose cyclone shelters have been constructed in 15 o f 19 coastal districts in Bangladesh. There are about 2,133 purpose-built shelters and perhaps 200 refuge sites (killas) for livestock during cyclones and storm s ~ r g e s . ~ The existing shelter capacity, however, i s grossly inadequate compared to the requirements. There i s also need for disaster shelters in frequently flooded areas and possibly shelters for earthquakes and other natural calamities. Where appropriate, shelters should be multipurpose buildings (for example, in education facilities) also connected to killas. The shelters should have water supply (our storage facilities for water), sanitation facilities, and storage for food and supplies needed for survival immediately after a disaster. They should be connected with the
Estimates available for functional Cyclone shelters range widely. The DMB estimated in 1991 that there are about 2033, however, LGED estimate i s 1,868. The CEGIS 2004 estimate i s that there are about 1,639 shelters in the high risk zone.
85
communication network for speedy evacuation and delivery o f re l ief supplies during the disaster. As a matter o f policy, a l l public buildings constructed in the high-risk zones should be multi-purpose and o f shelter grade.
17. Whi le studies to update the requirement are being prepared, the Government should begin a program o f constructing at least 2,000 additional shelters in the high-risk zones and upgrading at least 1,000 existing shelters (by adding killas, communication, and other facilities, and removing deficiencies observed in use o f the existing shelters). Given the capacity for implementation and possible financial outlays, it would be reasonable to construct about 100 new shelters and upgrade 200 annually over the next 5 years.
Further strengthening and institutionalizing disaster preparedness
18. T h i s will entail the following activities: (i) supporting and building the capacity o f the various sub-national disaster management committees to develop and implement disaster management plans at various levels, and mobil izing adequate response resources; (ii) development o f evacuation protocols and plans to guide local populations; (v) provision o f search and rescue equipment to Upazilla DMCs, and if necessary, provision o f transport for selected most in-need Upazillas.
Strengthening local communication systems and sustained public awareness and sensitization campaigns
19. Existing telecommunications facilities need to be better protected and supplemented by modem, disruption-free communication equipment in key disaster management focal points at the district, Upazilla, and union levels. Further, communities need to be trained in evacuation protocols and requirements through sustained above-the-line (such as electronic media) and below-the-line (such as behavioral change and sensitization campaigns) mass communication tools.
Pillar 3: Institutional Capacity Building
20. The country’s capacity to manage risk at different levels o f Government needs improvement. Disaster risk reduction has to be made part of the investment programs o f l ine Ministries/Agencies. This process has to be driven by the M o F D M as the apex agency in leading such efforts. Though i t s ro le i s crucial, there are several areas in which the MOFDM lacks capacity. Despite C D M P support there remain several issues that need to be addressed in order for the M o F D M to become an effective institution to deal with disasters in the future. The current focus o f the ministry seems to be on rel ief work, and to some extent reconstruction. Disaster preparedness and management, however, demand a different set o f activities. Most importantly, a key role that the M o F D M should play i s coordinating with other Government Ministries, Agencies, and local governments before, during, and after the disaster. Above all, the roles o f various M o F D M directorates and agencies (in particular the DMB and the Disaster Rel ief and Rehabilitation), and their workmg relationship with the other l ine ministries and district/local administration need to be defined clearly. Furthermore, the DMB and the Disaster Rel ief and Rehabilitation need to be staffed with professionals trained in disaster management. The fol lowing set o f activities i s proposed under this component:
Establishing a Bangladesh Institute for Disaster Management Training
2 1. This institute should be aimed at creating a national training and research capacity in disaster risk management. This could be established within one o f the major universities, and be responsible for developing curriculum and devising and conducting comprehensive training programs. Professionalizing the current disaster management institutions.
22. This component could include supporting existing C D M P activities toward the training and capacity building o f DMB and other key disaster management related institutions. In the longer term, the
86
Government should also, consider the creation o f a disaster management cadre. In the short term, the Government may consider inducting disaster management experts and consultants in the DMB and other institutions as required.
Building DMB capacity for damage, loss and needs assessments
23. This component will entail the strengthening o f the DMB to quickly provide reliable JDLNAs that can serve, when needed, to allow the DMB to quickly carry out assessments o n a regular basis, not only for extreme flood disasters. Moreover, establishing and strengthening a multi-hazard vulnerability mapping, information, and database unit within the DMB will help manage disparate sources o f information.
Mainstreaming disaster risk reduction and mitigation across sectors
24. This component will support existing CDMP efforts toward cross-sector mainstreaming o f Disaster Risk Reduction (DRR), also identified as a priority under the NPDM. Presently, CDMP activities to this effect primarily include partnership development, including advocacy for mainstreaming disaster r i s k reduction and for expanding r i s k reduction across a broader range o f hazards.
Fostering national level public-private partnership forums
25. This component will support the creation and strengthening o f multi-sector national platforms for the development o f integrated disaster r i s k reduction mechanisms-a key pr ior i ty for action adopted under the HFA. Such mechanisms will need to be multi-sector and interdisciplinary, with public, private and c iv i l society participation involving a l l concerned entities within the country. Such forums could prove instrumental in realizing the potential o f public-private partnerships in DRR for wider resource mobilization and for deepening partnerships with stakeholders workmg o n the socio-economic dimensions o f DRR.
Pillar 4: Risk Mitigation Investments for Reducing Exposure to Natural Hazards (Preliminary Program)
26. Absolute protection for a l l areas against a l l climate hazards i s neither feasible nor economically defensible. Economic considerations argue for an emphasis toward the protection o f higher-value assets such as urban areas, production centers, and infrastructure, with greater importance given to building capacity to cope with disaster in other areas. Building resilience would involve a combination o f interventions that include “hard” and “soft” engineering solutions, zoning and planning, and an innovative use o f economic instruments to protect assets and direct incentives toward investment in climate-resilient forms o f economic activity.
Riverbank Protection Improvement Program (RBIP)
27. Riverbank protection i s the main strategy available to Bangladesh for reducing flood risks and erosion and managing land and water resources. The country has a long history o f embankment construction along al l i t s major rivers. RBIP, coupled with an enhanced flood management approach for long-term sustainability, would call for large investments. T o be cost effective, i t must be phased and accompanied by pol icy commitments and by a financial and institutional architecture designed to assure adequate operational maintenance. The f i rst phase could start with improvements along the Brahmaputra Right bank Embankment (BRE). The protection has to be provided by constructing hard points where necessary (as identified by the FAP studies) for fixing river bank alignment. The hard points should be connected with a properly constructed embankment and combined with a road to make this substantial investment more productive and to ensure continued maintenance in the future. The f i rst phase could also support preparation and design o f priority investments in subsequent phases, together with a
87
comprehensive asset management plan, which would also involve local Governments and communities. Given current planning, absorption, and implementation capacities, the f i r s t phase should require about US$300 mi l l ion and would include improvement in protection around major cities along BRE. The investment program i s summarized in Table 4.
Coastal Embankment Improvement Program (CEIP)
28. There i s clear evidence that embankments, though inadequate in some places, provided an effective buffer during the tidal surge due to Cyclone Sidr. Damages and losses are much lower-and lives were saved-where effective embankments were present. Some embankments did not fa i l even when they were overtopped by the surge. The existing network i s large-more than 6,000 km o f coastal embankments and over 130 polders-many o f them constructed more than 30 years ago. However, their effectiveness has been impaired by poor maintenance and inadequate management. With repeated storms, coastal embankments stand to be weakened further, and need restoration and upgrading.
29. A systematic approach i s needed to upgrade the coastal embankments to provide protection against future storm surges. Designs should protect against an appropriate return period and should be based o n sound local r i s k and vulnerability assessments. An effective asset management plan will be critical. In addition, for some structures the crest level o f the embankment should be raised, and slopes and construction material improved. Moreover, the embankment improvement program has to be accompanied with a forestation program, particularly o n the sea side. Forestation has been shown to significantly reduce storm surge damage. Where appropriate, these need to be multipurpose infrastructure items. The total cost o f CEIP i s estimated at around U S $ 1 bil l ion. The first phase should start with investment o f about U S 3 0 0 mi l l ion over the next five years, giving pr ior i ty t o areas with high population density and economic activity.
Gorai River Restoration Project (GRRP)
30. The Gorai River i s an important source o f fresh water supply to south west region o f the country and i s the only remaining major spill channel o f the Ganges River f lowing through the region. For the last 25 years or so, the dry seasons flows (November - May) in the Gorai River have been decreasing. The environmental impact o f this decrease i s very serious in terms o f increased salt-water intrusion into the coastal area, around Khulna, and into the Sundarbans. I t i s expected that further decreases in dry season flows will lead to the siltation o f the mouth o f the Gorai offtake to an extent that the river may be permanently disconnected from the Ganges River. T h i s will deprive the region o f i t s most important source o f fresh water supply.
3 1. A feasibility study for Gorai River Restoration Project (GRRP) was carried out in 2000-200 1, and i t recommended some measures out o f seven options. The proposed permanent r iver training works for the Gorai o f f take on the Ganges and the Gorai River would ensure the gradual restoration o f the river and would help to sustain the environmental integnty and the socio-economic development o f the south west region o f the country as envisaged in the future development scenarios o f the National Water Management Plan. Most o f the benefits (65%) were found to be for the Sundarban mangroves forest (increased forest product and carbon sequestration), followed by 20% benefit to agriculture sector, while fisheries impact were found to be negative (-31%), because o f fa l l in brackish water shnmp production. The project was designed as a stand-alone and will ensure fresh water f lows during the lean and monsoon seasons. The estimated cost ranges f rom US$lOO to 120 mill ions (2001).
Program for upgrading the standards of construction for roads
32. The road network, particularly rural roads, serves as a lifeline during floods and needs to be upgraded to proper levels, with proper provision for drainage. Piecemeal repair and restoration o f roads
88
after each flood or cyclone i s neither cost effective nor suitable for a country facing increasing climate risks. The standards for the road network need to be upgraded and made mandatory for a l l roads constructed in the future. A survey o f vulnerabilities and a comprehensive program i s required to upgrade these structures. This will help reduce future damage and save lives. Roads should also be made multipurpose where possible.
Capacity building for risk mitigation investments
33. T o ensure the sustainability o f the r i s k mitigation investments, proper institutional arrangements must exist with a capacity to plan, design, and implement. Technical assistance and training will be provided to ensure capacity building.
Pillar 5: Catastrophe Risk Financing and Transfer
34. A well-designed r isk financing program enables a disaster-prone country to avoid major economic disruptions fo l lowing natural disasters by meeting i t s post-disaster funding needs without resorting to major budget reallocations, additional taxation, or external borrowing. Risk financing instruments are even more relevant given the increased vulnerabilities and uncertainties due to climate change.
35. The budget o f the Government o f Bangladesh does not include adequate contingency arrangements for disaster risk reduction and or recovery. The general practice i s that a “reserve” category i s established in the budget for various contingencies, and these funds are used in the aftermath o f a disaster. The budget allocations have typically been insufficient, requiring substantial supplemental donor assistance, and operation and maintenance budgets frequently suffer due to funds having been used in disaster response. T o meet i t s post-disaster funding needs, the Government can resort t o a combination o f ex post sources o f funding and ex-ante funding arrangements. Ex-ante funding arrangements include reserve funds, contingent capital facilities, and risk transfer instruments (insurance and reinsurance). Disaster response financing would have two main elements: a Disaster Response Fund, and catastrophe risk financing.
Disaster Response Fund (DRF)
36. The DRF would provide funding for early recovery, obviating the need to tap operation and maintenance budgets. This fund can be supplemented through a combination o f grants, credits, or loans, and standby arrangements with Global Facil ity for Disaster Reduction and Recovery (GFDRR). Donors could contribute to the established mechanism o f GFDRR, with some amount available upfront and the remaining on a callable basis. A certain amount o f the funds can be directly provided for budget support. The balance would finance specific recovery investments. The estimated level o f DRF should be around US$300 mill ion, based o n the 2007 flood and cyclone immediate recovery needs and the operation and maintenance funds that were redirected for disaster management.
Catastrophe risk financing of rare events
37. The possibility should be explored o f buying risk coverage f rom the international capital market, including re-insurers, in case o f catastrophic and rare events. This would inject liquidity immediately after the disaster and enhance coping capacity, as wel l as providing hazard-contingent budget support. Depending o n the peril, the insurance arrangements would fo l low parametric or index-based triggers. For Bangladesh, the coverage should include weather-related events (flood and cyclone). The premium could be financed through IDA credit.
89
Climate Change Multi-Donor Trust Fund
38. There i s also a clear and immediate need for supporting the climate change r isk mitigation agenda contained within the NPDM (2007-1 5), including (i) capacitating the Climate Change Cel l within DoEF; (ii) developing scenario and prediction models; (iii) strengthening knowledge o n climate change and climate variability impacts; (iv) identifying climate change adaptation options through action research; (v) incorporating climate variability impact information in DRR programs and strategies; and (vi) implementing capacity-building programs to improve multi-stakeholder understanding o f climate change impacts.
39. The international awareness o f climate change has led to a significant increase in interest in supporting Bangladesh, given the numbers o f people l ikely to be significantly affected. The urgent need for research and capacity building, and for rapid action to advance climate change adaptation activities, i s well recognized. However, given the unique nature o f the climate change issue (despite the significant experiences with managing ‘normal’ disasters in Bangladesh), there i s s t i l l l i t t le o f clarity about what needs to be done and how. In order to avoid what could potentially be a large number of uncoordinated projects and programs over the next several years, the international donor community in Bangladesh i s exploring options for a more harmonized approach. A multi-donor t rust fund-allowing for both technical assistance and grant or loan funds for the additional costs o f adaptation-would attract both bilateral and global funds, as wel l as funds from other sources such as the private sector. A single fund made available to a range o f sectors and stakeholders could provide coherent support for identif ied priorities, with appropriate management structures to ensure sound development outcomes, technical feasibility, and coordination.
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Slim mary of Risk Manage men t Req uirein ent s
Table 4: Preliminary Investment Program for Disaster Risk Reduction (LXS million))
Program 2008- 2013- 2018- Total 2012 2017 2022
A. Risk Identification and Assessment
B. Strengthening Emergency Preparedness
B 1. Improving forecasting and warning systems, and disaster planning and preparedness
B2. Disaster Shelter Program
B2.1. Construction o f New Shelters
B2.2. Upgrading existing shelters
Sub-total
C. Institutional Capacity building
D. Risk Mitigation Investments
D1. River Bank Protection Improvement Program
D2. Coastal Embankment Improvement Program
D3. Upgraded road network in particular in rural areas
D4. Forestation o f Coastal Belt
D5. Sundarbans restoration and improvement
D6. Gorai f iver Restoration Program
D7. Capacity building for risk mitigation investments
Sub-total
E. Disaster Risk Financing
El . Disaster Response Fund
E2. Multi-Donor Climate Change Fund
Sub-Total
Total
10
10
150
80
240
10
300
300
100
30
30
100
20
880
300
80
380 1,520
3
5
210
215 2
500
400
100
40
20
100
10
1170
- - -
1,390
3
5
240
245 2
500
200
100
30
-
-
10
840
- - -
1,090
16
20
600
80
700 14
1,300
900 300
100
50
200
40
2890
- -
380 4,000
Note: The cost estimates provided in the table are indicative, and are based o n WB Staff estimates, derived through various sources including GOB estimates, consultations with various development partners, and current costs o f activities funded under various ongoing programs, such as the CDMP.
91
Y V Q) .C1
E1 a
in Y
a a E
Q .I I
# Y I a V .I
9 h V
8 P 3 Q) rc 0
Q)
5
m
E E 2 i
i e
C
.. e : i : e
- ..
Annex 12: Statement of Loans and Credits BANGLADESH: Emergency 2007 Cyclone Recovery and Restoration Project
Project FY Purpose ID
Difference between expected and actual
disbursements Original Amount in US$ Mil l ions
IBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev’d
P106161
P106332
PO407 12
PO98146
PO84078
PI02305
PO98273
PO89382
PO74841
PO86791
PO86661
PO83890
PO81969
PO78707
PO74966
PO8 1849
PO7 1435
PO53578
PO62916
PO71794
PO44810
PO59143
PO41887
2009
2009
2008
2008
2008
2007
2006
2006
2005
2004
2004
2004
2004
2004
2004
2003
2003
2003
2003
2002
2001
2001
1999
Secondary Educ Qlty & Access Enhancement
Disability and Children at Risk Water Management Improvement Project
Public Procurement Reform Project I1
National Agricultural Technology Project
Avian Flu Preparedness
Local Governance Support Project
Investment Promotion Financing Facility
HNP Sector Program
Reaching Out o f School Children Project
BD - Water Supply Program Project
Economic Management TA Program (EMTAP)
Enterprise Growth & Bank Modernization
Power Sector Development T A
Primary Education Development Program I1 BD: Telecommunications Technical Assist.
Rural Transport Improvement Project
Social Investment Program Project
Central Bank Strengthening Project
Rural Elect. Renewable Energy Dev.
Legal & Judicial Capacity Building
Microfinance I1
Municipal Services
0.00 130.70
0.00 35.00
0.00 102.26
0.00 23.60
0.00 62.60
0.00 16.00
0.00 111.50
0.00 50.00
0.00 300.00
0.00 51.00
0.00 40.00
0.00 20.00
0.00 250.00
0.00 15.50
0.00 150.00
0.00 9.12
0.00 190.00
0.00 18.24
0.00 37.00
0.00 190.98
0.00 30.60
0.00 151.00
0.00 138.60
0.00
0.00
0.00 0.00
0.00 0.00
0.00
0.00
0.00
0.00 0.00
0.00
0.00
0.00 0.00
0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00
0.00
0.00 0.00
0.00
0.00
0.00 0.00
0.00
0.00
0.00
0.00 0.00
0.00
0.00
0.00
0.00
0.00
0.00 0.00
0.00 0.00
0.00 0.00
0.00
0.00 8.08
0.00 0.00
0.00 19.96
0.00
0.00
0.00
25.03
0.00
0.00 0.00
0.00
0.00
0.00
0.00 0.00
0.00 0.00
0.00 0.68
126.94
35.50
100.23
21.22
59.15
15.29
92.85
34.67
182.46
31.21
16.69
16.76
7 1.29
12.50
76.35
4.85
99.99
88.11
36.45
16.84
12.06
13.17
32.02
0.41
0.00 1.03
0.89
0.00 0.45
7.30 -2.44
40.29
7.90
9.16
11.82
59.23
11.14
22.26
3.91
49.46
1.72
31.11
-23.73
7.47
-12.13
3.07
0.00
0.00
0.85
0.00
0.00 0.00
0.00
0.00
0.00 0.00
0.00
0.00
0.00 11.14
0.00
3.56
-10.54
3.16
0.00
-51.81
0.00
-4.47
2.42
Total: 0.00 2,123.70 0.00 0.00 53.75 1,196.60 230.32 - 45.69
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BANGLADESH S T A T E M E N T OF IFC’s
Held and Disbursed Portfolio In Millions of U S Dollars
Committed Disbursed
FY Approval Company
IFC IFC
Loan Equity Quasi Partic. Loan Equity Quasi Partic.
2001 BRAC Bank 0.00 1.63 0.00 0.00 0.00 1.60 0.00 0.00
1997 DBH 1.91 0.65 0.00 0.00 1.91 0.65 0.00 0.00
1991 Dynamic Textile 0.00 0.00 0.00 1.48 0.00 0.00 0.00 1.48
GTFP Dhaka Bank 5.00 0.00 0.00 0.00 5.00 0.00 0.00 0.00 GTFP Eastem Bnk 2.59 0.00 0.00 0.00 2.59 0.00 0.00 0.00
2004 GrameenPhone Ltd 24.00 0.00 0.00 0.00 24.00 0.00 0.00 0.00
2006 GrameenPhone Ltd 59.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
1998 IPDC 3.13 0.00 0.00 0.00 3.13 0.00 0.00 0.00 1998 Khulna 10.40 0.00 0.00 11.99 10.40 0.00 0.00 11.99 1998 Lafarge/Surma 35.00 10.00 0.00 0.00 35.00 10.00 0.00 0.00 2000 Lafarge/Surma 0.00 0.00 0.00 15.00 0.00 0.00 0.00 15.00
2003 RAK Ceramics 7.20 0.00 0.00 0.00 7.20 0.00 0.00 0.00 2000 United Leasing 2.57 0.00 0.00 0.00 2.57 0.00 0.00 0.00
Total portfolio: 150.80 12.28 0.00 28.47 91.80 12.25 0.00 28.47
Approvals Pending Commitment
FY Approval Company Loan Equity Quasi Partic.
2000 USPCL
1998 Khulna
0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00
Total pending commitment, 0.00 0 00 0.00 0.00
100
Annex 13: Country at a Glance Bangladesh: Emergency 2007 Cyclone Recovery and Restoration Project
6
4
2
0 90 95 00 05
Banqladesh a t a qlance
6
4
2
0 90 95 00 05
9/24/08
Key Deve lopment I n d i c a t o r s
(2007)
Population, mid-year (millions) Surface area (thousand sq. km) Population growth (%) Urban population (Oh of total population)
GNI (Atias method, US$ billions) GNI per capita (Atlas method, US$) GNI per capita (PPP. international $)
GDP growth (Oh) GDP per capita growth (%)
(most recent estimate, 200&2007)
Poverty headcount ratio at $1 2 5 a day (PPP, Oh) Poverty headcount ratio at $2.00 a day (PPP. %) Life expectancy at birth (years) Infant mortality (per 1,000 live births) Child malnutrition (% of children under 5)
Adult literacy, male (Oh of ages 15 and older) Adult literacy, female ( O h of ages 15 and older) Gross primary enrollment. male (% of age group) Gross primary enrollment, female (% of age group)
Bangladesh
158.6 144 1.6 27
75.0 470
1,340
6 5 4.8
64 52 39
54 41
101 105
Access to an improved water source (%of population) 80 36 Access to improved sanitation facilities (YO of population)
South Asia
1,520 5,140
1.4 29
1,339 880
2,537
8.5 6.9
40 74 64 62 41
70 46
111 104
87 33
LOW income
1,296 21,846
2.1 32
749 578
1,500
6.5 4.3
57 85 29
72 50
100 89
68 39
Net A i d Flows
(US$ millions) Net ODA and official aid Top 3 donors (in 2006):
United Kingdom European Commission Netherlands
Aid ( O h of GNI) Aid per capita (US$)
Long-Term Economic Trends
Consumer prices (annual O h change) GDP implicit deflator (annual % change)
Exchange rate (annual average, local per US$) Terms of trade index (2000 = 100)
Population, mid-year (millions) GDP (US$ millions)
Agriculture Industry
Services
Household final consumption expenditure General gov't final consumption expenditure Gross capttal formation
Exports of goods and sewices Imports of goods and services Gross savings
Manufacturing
1980
1,287
99 33 53
7.3 14
17.6
15.5
88.9 18.115
31.6 20.6 13.8 47.8
91.8 6.1
14.4
5.5 17.9 3.7
1990 2000
2,093 1,168
97 103 59 68 72 33
6.8 2.4 19 8
3.9 3.9 6.3 1.9
33.3 50.3 98 100
113 0 139 4 30,129 47,097
(%of GDP) 30 3 25 5 21 5 25 3 13 1 15 2 48 3 49 2
86 2 77 7 4 2 4 6
17 1 23 0
6 1 14 0 13 5 19 2 14 4 26 5
2007 a
1,223
139 101 67
1 9 8
7 2 5 6
69 1 86
158 6 67,694
18 9 28 5 179 52 6
77 0 5 6
24 3
22 0 28 9 35 1
Age distribution, 2007
Male Female
7579
6064
4549
3034
15-19
04
15 10 5 0 5 10 15
Dercent
Under-5 mortality rate (per 1,000)
I'"1
I CBangladeSh 3South Asia
Growth of GDP and GDP per capita ( O h )
GDP per capita I +GDP - I 1980-90 1990-2000 200007
(average annual growth %)
2.4 2.1 1.8 3.7 4.8 5.8
2.1 2.9 2.9 6.0 7.3 8.0 5.2 7.2 7.8 3.8 4 5 5.9
2.7 2.9 4.0 2.7 4.7 10.2 7.2 9.2 8.5
5.4 13.1 72.9 3 2 9.7 IO. 1
Note: Figures in italics are for years other than those specified. 2007 data are preliminary. .. indicates data are not available. a. Aid data are for 2006.
Development Economics, Development Data Group (DECDG).
101
Banqladesh
Balance of Payments and Trade
(US$ millions) Total merchandise exports (fob) Total merchandise imports (ci9 Net trade in goods and services
Workers' remittances and compensation of employees (receipts)
Current account balance as a % of GDP
Reserves. including goid
Central Government Finance
("9 of GDP) Current revenue (including grants)
Current expenditure
Overall surpluddeficit
Highest marginal tax rate (%)
Tax revenue
Individual Corporate
External Debt and Resource Rows
(US$ mi//ions) Total debt outstanding and disbursed Total debt service Debt relief (HiPC. MDRI)
Total debt (% of GDP) Total debt service (% of exports)
Foreign direct investment (net inflows) Portfolio equity (net inflows)
2000
5,701 7,566
-2.510
1,968
-337 -0.7
1,599
8.4 6.4 7.5
-5.1
15,717 799 - 33.4 9.3
280 1
2007
12,053 15,511 -4,719
6,560
952 1.4
3,638
10.6 8.3 9.1
-3.1
20,521 685
-
33.2 4.1
697 31
Composition of total external debt, 2006
IDA e zer
Private Sector Development 2000 2008
Time required to start a business (days) - 73
Time required to register property (days) - 245 Cost to start a business (% of GNI per capita) - 25.7
Ranked as a major constraint to business 2000 2007 (% of managers surveyed who agreed)
Electricity 72.9 Corruption 57.6
Stock market capitalization (% of GDP) Bank capital to asset ratio (%)
I Governance indicators, 2000 and 2007
Voice and accountability
Polibcal stability
Regulatory quality
Rule of law
I Control o f c w p t i o n ~~
I , 0 25 M 75 1w
2007 Counby's percentile rank (0-100) 0 2000 hgbr "d!BS ,mpw M e , mmgs
Source: Kaufmanr-Kraay-MastNzi, WorM Bank
Technology and Infrastructure 2000 2007
Paved roads (% of total) Fixed line and mobile phone
High technology exports subscribers (per 1,000 people)
(X of manufactured exports)
9.5 9.5
1 22
0.2 0.3
Environment
Agricultural land (% of land area) 70 69 Forest area (% of land area) 6.6 6.7 Nationally protected areas (% of land area) .. 0.5
Freshwater resources per capita (cu. meters) .. 685 Freshwater withdrawal (% of internal resources)
C02 emissions per capita (mt) 0.20 0.25
75.6
GDP per unit of energy use (2005 PPP $ per kg of oil equivalent) 6.7 6.8
Energy use per capita (kg of oil equivalent) 134 158
(US$ mi//ionsj
IBRD Total debt outstanding and disbursed Disbursements Principal repayments Interest payments
IDA Total debt outstanding and disbursed Disbursements Total debt service
IFC ( k a / yea0 Total disbursed and outstanding pomoiio
Disbursements for IFC own account Portfolio sales, prepayments and
repayments fw IFC own account
of which IFC own account
MlGA
24 0 5 2
6,431 357 129
48 46 44
2
Gross exDosure 60
0 0 0 0
10,077 602 265
113 86 0
14
78 2.5 10.0 3.5 4.0
New guarantees 0 0
Note: Figures in italics are for years other than those specified. 2007 data are preliminary .. indicates data are not available. -indicates observation is not applicable.
Development Economics, Development Data Group (DECDG).
9/24/08
102
- Millennium Development Goals Bangladesh
With selected targets to achieve between 1990 and 2015 (estimate closest to date shown, +I- 2 years)
Goa l 1: ha lve the ra tes for e x t r e m e poverty and malnutrition 1990 1995 2000 2007 Poverty headcount ratio at $1.25 a day (PPP. % of population) Poverty headcount ratio at national poverty line ( O h of population) Share of income or consumption to the poorest qunitile (%) 9.5 8.7 8.7 8.8
39.2
51.0 49.8
Prevalence of malnutrition (% of children under 5)
Goal 2: ensure that children are able to complete primary schooling Primary school enrollment (net, YO) 76 83 89 Primary completion rate (YO of relevant age group) 49 77 72
Youth literacy rate (% of people ages 15-24) 45 64 Secondary school enrollment (gross, %) 46 44
Goal 3: eliminate gender disparity in education and empower women Ratio of aids to bow in oriman and secondaw education f%) 102 103 . , Women employe&n the nonagricultural sector (Oh of nonagricultural employment) 18 23 23 Proportion of seats held by women in national parliament (“h) 10 9 9 15
Goal 4: reduce under-5 mortality by two-thirds Under-5 mortality rate (per 1,000) 149 120 92 69 Infant mortality rate (per 1,000 live births) 100 83 66 52 Measles immunization (proportion of one-year olds immunized, %) 65 79 76 81
Goal 5: reduce maternal mortality by three-fourths Maternal mortality ratio (modeled estimate, per 100,000 live births) 570
Contraceptive prevalence (% of women ages 15-49) 40 45 54 58 Births attended by skilled health staff (% of total) 10 12 20
Goal 6: halt and begin to reverse the spread of HlVlAlDS and other major diseases Prevalence of HIV (% of population ages 1549) 0.1 0.1 Incidence of tuberculosis (per 100,000 people) 264 25 1 239 225 Tuberculosis cases detected under DOTS (YO) 6 24 65
Goal 7: halve the proportion of people without sustainable access to basic needs Access to an improved water source (% of population) 78 78 79 80 Access to improved sanitation facilities (% of population) 26 28 32 36 Forest area (% of total land area) 6.8 6.8 6.7 Nationally protected areas (% of total land area) 0.5
GDP per unit of energy use (constant 2005 PPP $ per kg of oil equivalent) 6.1 6.1 6.7 6.8 C02 emissions (metric tons per capita) 0.1 0.2 0.2 0.2
Telephone mainlines (per 100 people) Mobile phone subscribers (per 100 people) Internet users (per 100 people) Personal computers (per 100 people)
Goa l 8: develop a global partnership for development 0.2 0.2 0.4 0.7 0.0 0.0 0.2 21.7 0.0 0.0 0.1 0.3
0.0 0.1 2.2
Education indicators (%) G -0-Pnmary net enrollment ratio
+ Raho of girls to boys in primary 8 seconda education
basles immunization (%of I-year oidr)
IW 1
1990 1995 ZOM) 2 m
0 Bangladesh 0 South Asia
ICT indicators (per 1,000 people)
~
Note: Figures in italics are for years other than those specified. .. indicates data are not available.
Development Economics, Development Data Group (DECDG).
9/24/08
103
MAPS MAP 1: PATH OF CYCLONE SIDR
A
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MAP 2: AREA AFFECTED BY STORM SURGE DUE TO SIDR
105
MAP 3: AREA AFFECTED BY THE STORM
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