PROJECT INFORMATION DOCUMENT (PID)
APPRAISAL STAGE
Project Name
Region
Sector
Project ID
Borrower(s)
Report No.:73197
Emergency Infrastructure Preservation & Vulnerability Reduction
Project
AFRICA
Roads and highways (50%); Other social services (25%);
Irrigation and drainage (15%); General water, sanitation and flood
protection sector (10%)
P132101
Republic of Madagascar
Ministry of Finance
Mrs. Andriambololona Vonintsalama, Secretary-General
Telephone No.: +(261) 34 04 063 08 or +(261) 20 22 336 30
Email: secretairesg@mefb.gov.mg
Implementing Agency
Environment Category
Date PID Prepared
Estimated Date of
Appraisal Authorization
Estimated Date of Board
Approval
ARM
Madagascar
M. Jean Pascal Ramanamisata
Directeur Général
Autorité Routière de Madagascar
Telephone #: +(261) 33 11 688 30
e-mail: "Ramanamisata Jean Pascal" <pascal.r-misata@arm.mg>,
BN BVPI
Madagascar
[ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined)
September 26, 2012
August 27, 2012
November 20, 2012
1. Key development issues and rationale for Bank involvement
Introduction
1.
This Project Paper proposes the financing of an Emergency Infrastructure Preservation
and Vulnerability Reduction Project (the proposed Project) in the amount of SDR XX (US$102.0
million equivalent) to the Republic of Madagascar.
2.
Following an unconstitutional change of government in early 2009, Madagascar has been
experiencing a prolonged and severe political crisis, which has caused major economic and
social impacts that have been exacerbated by a series of external shocks, and a withdrawal of
most external funding. These concomitant events have caused a dramatic increase in the
incidence of poverty, especially on the most vulnerable population, with a reduction of social
protection safety nets and income-earning opportunities. The same events also caused a severe
reduction in public investments and the maintenance of lifeline infrastructure1 including roads,
agricultural and social infrastructure, resulting in their deterioration and decreased resilience to
natural disasters such as cyclones and droughts, as well as a sharp decline in basic social service
delivery.
3.
As a result of the political events that led to the departure of the former President of the
Republic in early 2009, preparation and approval of new lending and disbursements under the
Madagascar portfolio were put on hold in March 2009 in accordance with OP/BP 7.30, Dealing
with De Facto Governments. At the end of 2009, disbursements for the existing portfolio
resumed progressively to preserve the projects’ human and physical assets and minimize risks.
The full resumption of disbursements in May 2011 facilitated the initiation of a major portfolio
restructuring which is almost completed. The restructuring aimed to enhance the portfolio’s
impact through greater spatial concentration while exiting from activities that have become
unviable in the present context or that are at risk of political interference. These actions will also
ensure that the World Bank is better positioned to address the priority needs of the population,
but with the portfolio aging and the amount of undisbursed resources dwindling, it is becoming
increasingly difficult to make a meaningful impact.
4.
The proposed Project, prepared in close coordination with other Development Partners, is
part of a coordinated two-project International Development Association (IDA) response to
address the emergency needs due to the crisis and external shocks cited above. Initially, most of
the main Development Partners, including IDA, responded to the unconstitutional change in
government by freezing disbursements and suspending direct communication with the de-facto
authorities. However, as evidence emerged that the abrupt scaling back of many Development
Partners-supported programs was contributing to a rise in poverty and a marked decline in
human development indicators, all Development Partners resumed disbursements of some
ongoing operations, provided they had a clear humanitarian focus and could be implemented
through civil society organizations or semi-autonomous agencies not directly situated within
mainstream line ministries. The European Union (EU) and African Development Bank (AfdB)
are considering emergency support operations similar to the two projects proposed by the World
Bank (the Bank).
5.
The integrated, multi-sectorial approach that is being used for both proposed projects is
designed to take advantage of natural synergies between sectors, in contrast to a more
traditional approach that would involve the preparation of multiple stand-alone operations. The
two proposed projects have been designed to target the most vulnerable populations and
preserve critical institutional capacity whose collapse would lead to greater human suffering in
the short term and raise the cost of re-engagement once the crisis has passed.
6.
The Emergency Support to Critical Education, Health and Services Project (P131945, or
Human Development Project), which is being prepared concurrently with the proposed Project,
seeks to preserve critical education, health and nutrition service delivery in targeted vulnerable
Infrastructure that is crucial to the populations’ economic and social life is considered as lifeline infrastructure. This includes
transport infrastructure (especially, roads, for domestic transport, and ports, for both domestic and international transport),
agricultural infrastructure (especially water control structures needed for irrigated agriculture), and social infrastructure
(especially schools and health centers).
1
areas. It would primarily target regions where the negative impacts of the crises on human
development indicators have been severe, where the additional resources complement those of
other Development Partners and the government, and where existing implementation
mechanisms are already in place for faster impact.
7.
The proposed Project would contribute to preserve key lifeline infrastructure and reduce
household vulnerability in targeted areas. It would restore all-weather access on key national
roads through the spot rehabilitation of selected road sections, rehabilitate basic infrastructure for
communities like primary schools and health centers, preserve agricultural capacity and provide
short-term employment opportunities to vulnerable households in severely affected areas. It
would also build resilience to further shocks through the provision of disaster risk management
activities. In order to maximize synergies across activities and projects, feeder roads and
agricultural activities would be mostly implemented along the key national roads rehabilitated
under the proposed Project while the rehabilitation of health facilities, nutrition sites and schools
would be implemented in the regions of intervention of the Human Development Project.
Disaster risk management activities would be integrated in all activities.
8.
The design of the proposed Project has been largely guided by past and on-going projects
in Madagascar. The Project proposes to selectively continue those activities which are already
implemented as part of the existing portfolio, are the most critical for the preservation of human
capital and lifeline infrastructure and are readily implementable. For example, the cash-for-work
sub-component proposed under the Project would scale up the cash-for-work program currently
successfully implemented under the IDA-financed Emergency Food Security and Reconstruction
Project (P120631). Likewise, in the transport sector, the proposed Project would continue similar
activities financed under a series of three Adaptable Program Loans (APLs) 2 which started in
early 2000 with thorough sectorial institutional reforms to support the policy of the Government
to divest from operational activities, including the creation of the Road Authority (ARM) whose
preservation would be supported by the proposed project. In the agricultural sector, the Project
also proposes to continue activities which are currently successfully implemented under the
Irrigation and Watershed Management Project (P074086). Last, the Global Facility for Disaster
Reduction and Recovery (GFDRR) funded Track II technical assistance project is supporting the
development of tools for improved disaster response planning and coordination.
9.
The design of the proposed Project incorporates mitigation measures that reduce
considerably any risk of political capture. Cognizant of the fact that the risk of political capture is
especially high at the eve of the upcoming election cycle, mitigation measures have been
embedded in the proposed Project including: (i) identification during Project preparation of the
infrastructures (roads, schools, etc.) to be rehabilitated during the first year; (ii) allocation of
resources and selection of beneficiaries for the cash-for-work program driven by formulas based
on poverty data and household characteristics; (iii) incorporation of social accountability
mechanisms at community level; and (iv) enhanced supervision to monitor project
implementation and prevent political interference. Also, the strong IDA country presence would
provide continual monitoring and surveillance of project activities while the recently created
2
APL1: Transport Sector Reform and Rehabilitation Project (P052208), 2000-2005, APL2: Rural Transport Project
(P073689), 2003-2012, and APL3: Transport Infrastructure Investment Project (P082806), 2004-2012.
Global Center on Conflict, Security and Development located in Nairobi, Kenya would provide
incremental support and expertise for enhanced supervision.
10.
The two IDA proposed Projects are being processed under emergency OP/BP 8.00
procedures to ensure a rapid focused response to critical needs. By maintaining sectorial dialogue
with the Government and other partners and maintaining existing implementation systems, the
proposed interventions would pave the way towards a fuller re-engagement with the Government
of Madagascar once the situation permits.
Rationale for the Proposed Bank Emergency Project
11.
In the present context of deteriorating infrastructure and increased household
vulnerability, the proposed Project aims to preserve lifeline infrastructure in critical sectors
(notably transport, agriculture, health, and education) and to reduce vulnerability by creating
short-term employment and income opportunities for poor households in targeted areas, through
the provision of cash-for-work programs and agricultural intensification schemes. The objective
of these interventions is to preserve the country’s key domestic and international economic
activities, the capacity of disadvantaged segments of the population to carry out vital economic
activities and improve their access to stable income-earning opportunities. The project also aims
to increase the DRM capacity of the Government to anticipate and respond to natural disasters,
and establishes a contingency financing mechanism to allow reallocation of project funds to
respond to natural disasters.
12.
The interventions to be supported under the proposed Project have been selected based on
three criteria: (i) their potential to contribute to the preservation of critical lifeline infrastructure,
the preservation of incomes and the reduction of vulnerability; (ii) the ability to be implemented
quickly and to achieve rapid results on the ground; and (iii) the absence of alternatives means of
supporting the intervention. Rehabilitation of key lifeline infrastructure, would help to slow, and
hopefully reverse, part of the sustained decline in economic activity. Investments in agricultural
intensification activities and cash-for-work programs would provide households with incomeearning opportunities to compensate for the nation’s depleted safety nets. Support provided to
improving preparedness for natural disasters would help build resilience in the face of future
weather-related shocks, and support to the ARM would help in further preserving both
institutional and road assets.
13.
The Bank has a demonstrated record of delivering results in the areas of focus supported
by the proposed Project, as well as the knowledge needed for planning effective interventions
and established implementation capacity. In the transport sector, the Bank has financed a series
of successful lending operations that have played a major role in preserving, upgrading and
expanding the national road and rail networks, as well as in preserving ports infrastructure. In the
agricultural sector, the Bank has financed successful rural development projects that constitute
the centerpiece of the national agricultural development strategy. In the social protection sector,
the Bank has pioneered innovative cash-for-work programs that have made a significant impact
in boosting the revenues of targeted groups in the population. With respect to disaster risk
management, the Bank has led important trust-funded analytical work and implemented a series
of activities including the development and adoption of anti-cyclone construction norms that
have led to significant innovations in national programs.
14.
The activities financed under the proposed Project have been designed to complement
what is currently being supported or being proposed by other Development Partners. Because
transport and agriculture sector support by the EU, the AfDB, and the International Fund for
Agricultural Development (IFAD) is concentrated in the far south and southwestern areas of the
country, the proposed Project is targeting regions along the central and northern tiers of the
national road network, and the adjacent agricultural production zones. Social protection activities
would similarly target these zones, while retaining the flexibility to respond to as yet unidentified
needs in response to future disasters. Disaster risk management work would focus on
strengthening national systems, while at the same time enhancing Early Warning Systems
(EWSs) and disaster response capacity in the northern and southeastern parts of the country that
are highly exposed to floods and cyclones. The geographic coverage of the proposed project is
presented in the map at the end of Annex 1.
15.
The proposed Project would take advantage of existing implementation mechanisms and
build on ongoing activities so as to expedite implementation and deliver rapid results. It would
support fast-disbursing activities that would directly impact beneficiaries’ access to specific
services in the short term, while strengthening overall social services systems in the medium
term. The proposed Project would adopt a “Build Back Better” approach that applies climateproof construction norms to rehabilitate and reconstruct infrastructure. Much of the infrastructure
targeted by the proposed Project has been damaged by natural disasters, notably cyclones. The
application of construction norms (either those recently developed by the Cellule de Prévention
et de Gestion des Urgences (CPGU) with Bank support or those proposed to be developed as part
of the Project) would ensure future resilience of infrastructure rehabilitated or reconstructed by
the proposed Project, and thereby help to ensure the sustainability of project achievements.
2. Proposed objective(s)
16.
The Project Development Objectives are to preserve key lifeline infrastructure and reduce
household vulnerability in targeted areas.
3. Preliminary description
17.
Component A: Rehabilitation of Lifeline Infrastructure and Disaster Risk
Mitigation. This component would support the following activities: (i) rehabilitation of transport
lifeline infrastructure; (ii) rehabilitation of community-level basic infrastructure; (iii)
enhancement of Disaster Risk Management (DRM) capacity, including an establishment of a
zero-budget contingency fund for use in the aftermath of a natural disaster.
18.
Component B: Reduction of Household Vulnerability. This component would support
the following activities in targeted areas: (i) distribution of agricultural inputs and rehabilitation
of micro-irrigation systems; and (ii) provision of short-term employment.
19.
Component C: Project Management and Coordination. This component would
finance project management and coordination costs, including consultant services, technical
assistance, training, and operating costs.
4. Safeguard policies that might apply
Which safeguard policies might apply to the project and in what ways?
20.
Activities supported under the proposed Project are expected to have a number of sitespecific adverse environmental and social impacts. Therefore, the following safeguards policies
are triggered: OP/BP 4.01 (Environmental Assessment); OP/BP 4.09 (Pest Management),
OP/BP 4.11 (Physical Cultural), OP/BP 4.12 (Involuntary Resettlement) and OP/BP 4.37 (Safety
of Dams) (refer Table 4).
What actions might be needed during project preparation to assess safeguard issues and prepare
to mitigate them?]
21.
As this operation is subject to OP/BP 8.00, Rapid Response to Crises and Emergencies,
an Environmental and Social Screening and Assessment Framework (ESSAF) should be
prepared to ensure compliance with the World Bank’s safeguards policies during
implementation.
5. Tentative financing
Source:
BORROWER/RECIPIENT
International Development Association (IDA)
Total
6. Contact point
Contact: Noroarisoa Rabefaniraka
Title: Sr Transport. Spec.
Tel: 5339+6043 / 261-20-225-6043
Fax:
Email: nrabefaniraka@worldbank.org
Location: Antananarivo, Madagascar (IBRD)
7. 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
($m.)
102
102
102