. PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB6934 . Project Name Cultural Heritage and Urban Development Additional Financing (P116197) Region MIDDLE EAST AND NORTH AFRICA Country Lebanon Sector(s) Industry and Trade; Transportation; Public Administration, Law, and Justice; Water, sanitation and flood protection Lending Instrument Specific Investment Loan Project ID P116197 Borrower(s) Government of Lebanon Implementing Agency Council for Development and Reconstruction (CDR); Director General of Antiquities (DGA); and the Municipalities of Baalbeck, Saida, Byblos, Tripoli and Tyre Environmental Category B Date PID Prepared 05-Jan-2012 Estimated Date of Appraisal Completion 24-Feb-2012 Estimated Date of Board Approval 08-Mar-2012 Decision Other Decision . I. Project Context Country Context Lebanon has a rich and diverse cultural patrimony inherited from many civilizations that existed on its territory. It is a small and highly urbanized country: 90% of its 4.3 million people live in urban areas. Most of Lebanon's internationally renowned patrimony is found in the urban areas, including the very cores of historic towns. Due to pressures of modem development, postwar reconstruction and lack of means and mechanisms for patrimony preservation, the unique built cultural heritage is suffering from neglect and is progressively lost to modem constructions. Residents and visitors rarely perceive archeological heritage, partially exposed, but largely buried under the layers of continuous town rebuilding, as integral part of history and development of the modern towns. Archeological sites are spatially and/or socially isolated from the neighborhoods in their vicinity. Very little economic benefit is derived presently by local residents or municipalities from the rich cultural assets that are found within their communities. Municipalities are unable to program and implement infrastructure investments that would stimulate private sector initiatives to create jobs and ensure an additional source of revenues coming from fees, property and professional taxes levied on productive operation of rehabilitated and re-used historic properties. Most tourism revenues are either captured by foreign tour operators, or by a small group of Beirut-based agencies and hotels. Most archeological and historic sites are poorly presented with inadequate information and orientation for the tourists. Often, they represent significant safety hazards because of unstable or crumbling structures and unregulated circulation. They also lack basic amenities, such as visitor parking lots, shaded areas, seating, and toilets. In urban areas, the condition and access to cultural assets are further jeopardized by traffic congestion, chaotic parking, omnipresence of solid waste and wastewater, and in some cities, degradation of the coastal zones. Touristic accommodation of all types is scarce. Despite rich culinary traditions, historic cores lack restaurants and cafes of all grades where visitors can stop while moving in the old cities. Traditional activities and artisan workshops are dispersed, poorly organized and promoted, and need assistance to improve the competitiveness of their products on the regional market. . II. Sectoral and institutional Context Main sector issues can be summarized as follows: (a) Low contribution of cultural heritage to local and national socio-economic and civic development: Very little economic benefit is derived presently by local residents or municipalities from the rich cultural assets that are found within their communities. Municipalities are not able to program and implement infrastructure investments that would stimulate private sector initiatives to create jobs, and ensure an additional source of revenues coming from fees, property and professional taxes levied on productive operation of rehabilitated and re-used historic properties. Local commercial, social and recreational activity is largely marginal or irrelevant to the cultural heritage environment, resulting in a sense of opposition between local socio-economic development needs and the heritage preservation and tourism industry. Most tourism revenues are either captured by foreign tour operators, or by a small group of Beirut-based agencies and hotels. (b) Physical and environmental degradation of cultural heritage assets: Lebanon's main built cultural assets can be divided into three groups: archeological sites, historic monuments, and old town centers. Both archeological sites and urban heritage areas suffer from poor maintenance and management, buildings and monuments need structural repair and treatment of surfaces. Presentation of sites that would maximize their educational, tourist, and social value is almost non-existent. Air pollution, sewage overflows, visual intrusions and vehicular congestion are the main environmental problems in and around the main heritage areas. (c) Outdated and under-funded sector institutions: Institutional and budgetary obstacles in operation of the institutions responsible for heritage preservation and rehabilitation are exacerbated by the diversity of cultural assets - archeological sites, mosques, churches, madrassas, hammams, historic palaces, traditional rest-houses, residential housing, and supporting infrastructure, and plural ownership patterns state, municipal, religious, and multiple private ownerships. The regulatory capacity of the public sector has to be strengthened to provide guidelines and an enabling legal environment to stimulate private sector sponsorship of cultural heritage preservation. While the Municipal Law of 1977 gives many rights to regional and municipal authorities, they lack resources and skills to address their nationally and internationally important historic assets either directly, or through heritage conscious urban development policies. Some municipalities are taking initiative to beautify the most publicly significant parts of their towns as a token of their commitment to urban rehabilitation and post-war revival, and actively support the concept of historic preservation zones in their urban master plans. The Urban Code of 1962 contained a requirement to elaborate detailed plans and regulations for historic sites. Its revision in 1983 preserved this requirement and stipulated that the plans and detailed regulations can delimit districts which have to be protected or developed "for aesthetic, historic, or ecological reasons"; their character should be preserved during restoration and construction, and special building regulations should be introduced. Specific preservation districts will be then integrated into urban master plans. In practice, there exist only a few urban Master Plans that delimit the historic areas. Moreover, with the exception of the special case of the center of Beirut, and a few pilot studies, there are no detailed plans for preservation of these historic areas. . III. Project Development Objectives The Project has two key development objectives: (a) to create the conditions for increased local economic development and enhanced quality of life in the five cities; and (b) to improve the conservation and management of Lebanon’s cultural heritage. . IV. Project Description The project has three main components: (i) rehabilitation of historic city centers and urban infrastructure improvements; (ii) archeological sites conservation and management; and (iii) institutional strengthening. Component 1: Rehabilitation of historic city centers and urban infrastructure improvements. Activities under this component are carried out in and around the old core areas of five Project cities. They include: (a) upgrading of and improvements to public spaces, including the vegetable markets of Tripoli and Tyre; (b) conservation and adaptive reuse of monuments and historic buildings; (c) support to cultural heritage related productive and commercial activities; (d) support to the rehabilitation of the housing stock, (e) enforcement of city center zoning regulations; (f) traffic and parking improvements for historic centers; (g) protection and landscaping of coastal and green areas; and (h) studies for urban redevelopment adjacent to historical cores. Component 2: Archeological Sites Conservation and Management. These activities are taking place primarily in Baalbeck and Tyre, two of the main archeological sites of Lebanon, both inscribed on the UNESCO World Heritage list. In addition to the activities in Tripoli, this component also includes the following complementary activities: (a) research and documentation; (b) conservation of surfaces and structures; (c) site presentation to visitors; d) site management; and (e) further archaeological studies. Component 3: Institutional Strengthening. This component includes the following complementary technical assistance and capacity building activities: (a) management of historic centers by municipalities and Directorate General of Urban Planning (DGU); (b) strengthening municipal support to local economic development and communications; (c) reform of the cultural heritage institutional and regulatory framework; (d) restructuring and strengthening of the Directorate General of Antiquities (DGA); and (e) Council for Development and Reconstruction (CDR) Project management. . V. Financing (in USD Million) For Loans/Credits/Others Amount Borrower 0.127 International Bank for Reconstruction and Development 27.00 FRANCE French Agency for Development Government of Italy Total 30.063 0.289 57.479 . VI. Implementation The Project will continue to be implemented by a Project Management Unit (PMU) established at the Council for Development and Reconstruction (CDR), and be responsible for all aspects of project management including procurement, financial management and disbursement activities, as well as coordination with other agencies. After more than six years of practical experience, the PMU has now developed adequate expertise in historical and cultural heritage restoration and renovation in the country. . VII. Safeguard Policies (including public consultation) Safeguard Policies Triggered by the Project Environmental Assessment (OP/BP 4.01) Yes X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) Involuntary Resettlement (OP/BP 4.12) X X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X VIII. Contact point World Bank Contact: Chantal Reliquet Title: Sr. Urban Specialist Tel: (202) 473-6385 Email: creliquet@worldbank.org . Borrower/Client/Recipient . No Contact: Mr. Nabil Itani; Mr. Maher Baker Title: Project Coordinators Tel: 961 1 98 00 96, ext. 331 Email: nabili@cdr.gov.lb; mbaker@cdr.gov.lb Implementing Agencies Contact: H.E. Nabil A. El-Jisr Title: President of the Council for Development and Reconstruction Tel: Email: (Fax No:+ 961 1 981 252) . IX. For more information contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-4500 Fax: (202) 522-1500 Web: http://www.worldbank.org/infoshop