Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: PAD1018
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
PROJECT APPRAISAL DOCUMENT
ON A
PROPOSED GRANT
IN THE AMOUNT OF US$10.00 MILLION
TO THE
REPUBLIC OF LEBANON
FOR A
MUNICIPAL SERVICES EMERGENCY PROJECT
June 20, 2014
Sustainable Development Department
Middle East and North Africa
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.
CURRENCY EQUIVALENTS
(Exchange Rate Effective March 31, 2014)
Currency Unit = Lebanese Pounds (LBP)
LBP 1504.51 = US$1
FISCAL YEAR
January 1
–
December 31
ABBREVIATIONS AND ACRONYMS
AFD
BP
CBL
CDR
CHUD
CPS
CSO
DA
EMP
ESIA
ESMF
ESMP
EU
FM
GDP
GOL
IBRD
ICB
IFR
IMF
IPSAS
ISDS
LBP
LSCTF
M&E
MENA
MOF
MOIM
MSEP
NCB
NGO
OM
O&M
OP
PAP
PDO
French Development Agency (Agence Française de Développement)
Bank Procedures
Central Bank of Lebanon
Council for Development and Reconstruction
Cultural Heritage and Urban Development Project
Country Partnership Strategy
Civil Society Organization
Designated Account
Environmental Management Plan
Environmental and Social Impact Assessment
Environmental and Social Management Framework
Environmental and Social Management Plan
European Union
Financial Management
Gross Domestic Product
Government of Lebanon
International Bank For Reconstruction And Development
International Competitive Bidding
Interim Un-audited Financial Report
International Monetary Fund
International Public Sector Accounting Standards
Integrated Safeguards Data Sheet
Lebanese Pounds
Lebanon Syrian Crisis Trust Fund
Monitoring and Evaluation
Middle East and North Africa
Ministry of Finance
Ministry of Interior and Municipalities
Municipal Services Emergency Project
National Competitive Bidding
Non-Governmental Organization
Operational Manual
Operation and maintenance
Operational Policy
Project Affected Persons
Project Development Objective
PFS
PMU
RAP
RPF
SOE
SPF
UNDP
UNHCR
UNICEF
VAT
WDR
Project Financial Statements
Project Management Unit
Resettlement Action Plan
Resettlement Policy Framework
State-Owned Enterprise
State and Peace Building Fund
United Nations Development Programme
United Nations High Commissioner for Refugees
United Nations Children’s Fund
Value Added Tax
World Development Report
Regional Vice President:
Country Director:
Sector Director:
Sector Manager:
Task Team Leader:
Inger Andersen
Ferid Belhaj
Junaid Kamal Ahmad
Franck Bousquet
Chantal Reliquet
LEBANESE REPUBLIC
Municipal Services Emergency Project
TABLE OF CONTENTS
Page
I.
STRATEGIC CONTEXT ....................................................................................................... 1
A. Country Context .................................................................................................................. 1
B. Situations of Urgent Need of Assistance............................................................................. 2
C. Sectoral and Institutional Context ....................................................................................... 3
D. Higher Level Objectives to which the Project Contributes ................................................. 4
II.
PROJECT DEVELOPMENT OBJECTIVES ...................................................................... 5
A. PDO ..................................................................................................................................... 5
Project Beneficiaries.................................................................................................................. 5
PDO Level Results Indicators ................................................................................................... 5
III.
PROJECT DESCRIPTION .................................................................................................... 6
A. Project Components ............................................................................................................ 7
B. Project Financing ................................................................................................................ 9
Financing Instrument ................................................................................................................. 9
Project Cost and Financing ........................................................................................................ 9
C. Lessons Learned and Reflected in the Project Design ........................................................ 9
IV.
IMPLEMENTATION ........................................................................................................... 11
A. Institutional and Implementation Arrangements ............................................................... 11
B. Results Monitoring and Verification ................................................................................. 13
C. Sustainability ..................................................................................................................... 14
V.
KEY RISKS AND MITIGATION MEASURES ................................................................ 15
A. Risk Ratings Summary Table ............................................................................................ 15
B. Overall Risk Rating Explanation....................................................................................... 15
VI.
APPRAISAL SUMMARY .................................................................................................... 16
A. Economic and Technical Analysis .................................................................................... 16
B. Financial Management ...................................................................................................... 17
C. Procurement ...................................................................................................................... 17
D. Environment and Social (including Safeguards) ............................................................... 18
Annex 1: Results Framework and Monitoring................................................................................ 21
Annex 2: Detailed Project Description ............................................................................................. 25
Annex 3: Implementation Arrangements ........................................................................................ 31
Annex 4: Operational Risk Assessment Framework (ORAF) ....................................................... 46
Annex 5: Implementation Support Plan .......................................................................................... 50
.
PAD DATA SHEET
Lebanon
Lebanon Municipal Services Emergency Project (P149724)
PROJECT APPRAISAL DOCUMENT
.
MIDDLE EAST AND NORTH AFRICA
MNSSU
Report No.: PAD1018
.
Basic Information
Project ID
EA Category
Team Leader
P149724
B - Partial Assessment
Chantal Reliquet
Lending Instrument
Fragile and/or Capacity Constraints [ X ]
Investment Project Financing
- Fragile within a non fragile
country
Financial Intermediaries [ ]
Series of Projects [ ]
Project Implementation Start Date
Project Implementation End Date
20-June-2014
30-June-2017
Expected Effectiveness Date
Expected Closing Date
1-July-2014
30-Dec-2017
Joint IFC
No
Sector Manager
Sector Director
Country Director
Regional Vice President
Franck Bousquet
Junaid Kamal Ahmad
Ferid Belhaj
Inger Andersen
.
Borrower: Lebanese Republic
Responsible Agency: Council for Reconstruction and Development (CDR)
Contact:
Title:
Wafa Charafeddine
Telephone No.: +961 198 00 96
Funding Division Director
Email: wafac@cdr.gov.lb
.
Approval Authority
Approval Authority
i
RVP Decision
.
Safeguards Deferral (from Decision Review Decision Note)
Will the review of Safeguards be deferred? [ ] Yes
[ X ] No
Project Financing Data(in USD Million)
[ ]
Loan
[X]
[ ]
Credit [ ]
Grant
[]
Guarantee
IDA Grant [ ]
Total Project Cost:
10.00
Financing Gap:
0.00
Other
Total Bank Financing:
10.00
.
Financing Source
Amount
Borrower
0.00
Lebanon Syrian Crisis Trust Fund
10.00
Total
10.00
.
Expected Disbursements (in USD Million)
Fiscal Year
2014
2015
2016
2017
2018
Annual
0.00
2.00
3.00
5.00
0.00
Cumulative
0.00
2.00
5.00
10.00
10.00
.
Proposed Development Objective(s)
The project development objective is to address urgent community priorities in selected municipal
services, targeting areas most affected by the influx of Syrian refugees.
.
Components
Component Name
Cost (USD Millions)
Emergency Response
3.50
Rehabilitation of Critical Infrastructure
5.50
Project Implementation Support
1.00
.
Institutional Data
Sector Board
Urban Development
.
Sectors / Climate Change
ii
Sector (Maximum 5 and total % must equal 100)
Major Sector
Sector
%
Adaptation
Mitigation
Co-benefits % Co-benefits %
Water, sanitation and flood protection Solid waste management 40
Water, sanitation and flood protection Sanitation
20
Water, sanitation and flood protection Water supply
10
Transportation
Rural and Inter-Urban
Roads and Highways
20
Health and other social services
Other social services
10
Total
100
I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information
applicable to this project.
.
Themes
Theme (Maximum 5 and total % must equal 100)
Major theme
Theme
%
Urban development
City-wide Infrastructure and Service
Delivery
85
Social dev/gender/inclusion
Other social development
10
Social dev/gender/inclusion
Conflict prevention and post-conflict
reconstruction
5
Total
100
.
Compliance
Policy
Does the project depart from the CAS in content or in other significant
respects?
Yes [ ]
No [ X ]
Does the project require any waivers of Bank policies?
Yes [ ]
No [ X ]
Have these been approved by Bank management?
Yes [ ]
No [
Is approval for any policy waiver sought from the Board?
Yes [ ]
No [ X ]
Yes [ X ]
No [ ]
.
]
Explanation:
Does the project meet the Regional criteria for readiness for implementation?
.
Safeguard Policies Triggered by the Project
Yes
iii
No
Environmental Assessment OP/BP 4.01
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
X
Involuntary Resettlement OP/BP 4.12
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
.
Legal Covenants
Name
Schedule, Section I.A.1 of Project
Agreement
Recurrent
Due Date
Frequency
CONTINUOUS
X
Description of Covenant
[…] The Project Implementing Entity shall maintain a Project Management Unit (PMU) throughout the
life of the Project, with functions, staffing, resources, and terms of reference satisfactory to the World
Bank.
Name
Recurrent
Schedule, Section I.B.1 of Project
Agreement
Due Date
Frequency
1-AUG-2014
Description of Covenant
The Project Implementing Entity shall, not later than one (1) month after the Effective Date of this
Agreement, prepare, adopt, and thereafter implement an Operational Manual, in a manner and substance
satisfactory to the World Bank, which manual shall include, inter alia: (i) implementation arrangements;
(ii) procurement procedures and standard procurement documentation; (iii) reporting requirements,
financial management and audit procedures; (iv) monitoring and evaluation, reporting and
communication, including performance indicators; and (v) environmental and social safeguards
including the operation of grievance redress mechanism.
Name
Schedule 2, Section II.A.1 of Grant
Agreement
Recurrent
X
Due Date
Frequency
Semi-annual
Description of Covenant
The Recipient shall cause CDR to monitor and evaluate the progress of the Project and prepare Project
iv
Reports in accordance with the provisions of Section 2.06 of the Standard Conditions and on the basis of
the indicators set forth in the Operational Manual acceptable to the World Bank. Each Project Report
shall cover the period of one calendar semester, and shall be furnished to the World Bank not later than
forty five (45) days after the end of the period covered by such report.
Name
Recurrent
Schedule 2, Section II.B.1 of Grant
Agreement
Due Date
Frequency
CONTINUOUS
X
Description of Covenant
The Recipient shall ensure that a financial management system is maintained in accordance with the
provisions of Section 2.07 of the Standard Conditions.
Name
Recurrent
Schedule, Section I. D. 1 of Project
Agreement
Due Date
Frequency
CONTINUOUS
X
Description of Covenant
The Project Implementing Entity shall carry out the Project in accordance with ESMF and RPF and any
other Safeguard Document prepared or to be prepared in accordance with sub-paragraph 2 below, in a
manner satisfactory to the World Bank.
.
Conditions
Source Of Fund
Name
Type
LSCTF
Article 5.01 (b) of the Grant Agreement
Effectiveness
Description of Condition
This Agreement shall not become effective until evidence satisfactory to the World Bank has been
furnished to the World Bank that the conditions specified below have been satisfied:
(a)
The execution and delivery of this Agreement on behalf of the Recipient have been duly
authorized or ratified by all necessary government action.
(b)
The Subsidiary Agreement referred to in Section I.A.1 of Schedule 2 of this Agreement has been
executed on behalf of the Recipient and CDR.
Team Composition
Bank Staff
Name
Title
Specialization
Unit
Chantal Reliquet
Senior Urban Specialist
Team Leadership
MNSSU
Haneen Ismail Sayed
Lead Operations Officer Human Development
MNSSP
Hassine Hedda
Senior Financial Officer Financing and
Disbursement
CTRLA
Sima W. Kanaan
Lead Social
Development Specialist
Conflict and Institutional MNSSU
Development
v
Mazhar Farid
Legal Analyst
Legal
LEGAM
Balakrishna Menon
Parameswaran
Lead Social
Development Specialist
Local Governance and
Finance
MNSSU
Chaogang Wang
Senior Social
Development Specialist
Social Safeguards
MNSSU
Caroline Bahnson
E T Consultant
Conflict, Resilience and
Social Cohesion
MNSSU
Mei Wang
Senior Counsel
Legal
LEGAM
Lina Fares
Senior Procurement
Specialist
Procurement
MNAPC
Anna Victoria Gyllerup
Senior Operations
Officer
Results Framework and
Quality Control
MNADE
Husam Mohamed Beides Lead Energy Specialist
Sector Coordination
MNSEE
Andrianirina Michel Eric Finance Officer
Ranjeva
Finance and
Disbursement
CTRLA
Zeyad Abu-Hassanein
Sr Water & Sanitation
Specialist
Environmental
Safeguards
MNSWA
Guido Licciardi
Urban Specialist
Urban Management
UDRUR
Rima Abdul-Amir
Koteiche
Sr Financial
Management Specialist
Financial Management
MNAFM
Charlene D'Almeida
Program Assistant
Operational Support
MNSSU
Fadi Riachi
Consultant
Civil Engineering
MNSSU
Title
Office Phone
City
Non Bank Staff
Name
.
Locations
Country
First
Administrative
Division
Location
Planned Actual
Lebanon
Liban-Nord
Mohafazat LibanNord
X
Lebanon
Liban-Sud
Mohafazat LibanSud
X
Lebanon
Beqaa
Mohafazat Beqaa
X
vi
Comments
I.
STRATEGIC CONTEXT
A.
Country Context
1.
Since the beginning of the violent conflict in Syria in March 2011, the country has faced
widespread destruction of lives, livelihoods, and basic living conditions. This has resulted in a
massive movement of people within Syria, as well as into neighboring countries. Three years
after the conflict started, more than 2.5 million people had registered, or were awaiting
registration with the United Nations High Commissioner for Refugees (UNHCR) in Lebanon,
Jordan, Turkey, Iraq and Egypt. Lebanon has kept its borders open to Syrian refugees and is now
the country that is hosting the largest number of Syrians in both absolute and relative terms. It is
estimated that around one and a half million Syrian refugees have entered into Lebanon, causing
the country’s population to increase by almost 25 percent.1 Lebanon has chosen not to establish
refugee camps, and the majority of the Syrians have settled amidst Lebanese communities, many
of them already poor and underserved.
2.
More so than any of Syria’s other neighbors, the conflict has had direct political and
security ramifications for Lebanon. A porous border and close links between political and
militarized groups in the two countries have resulted in an exacerbation of existing political
divides along sectarian lines and led to violent incidents across the country. This is threatening
Lebanon’s already fragile institutional and political stability. The conflict spillovers, including
the steady stream of Syrian refugees, are seen as an existential peril to the country. A longstanding political stalemate has further hindered the Government in developing and agreeing on
a concerted plan to actively mitigate the impact of the crisis.
3.
The crisis and the consequential inflow of refugees have also had significant social and
economic impacts on Lebanon. A World Bank assessment from 20132 shows that the economic
impact of the Syrian conflict has resulted in a reduction of Lebanon’s real GDP growth rate by
2.9 percentage points for each conflict year over the years 2012-2014. Increased levels of
insecurity and uncertainty have hit investor and consumer confidence and trade routes for
exports and imports of goods, tourism, and financial services have been disrupted. This has
placed downward pressure on government revenues which, combined with rising demand for
public services, is expected to widen Lebanon’s already large fiscal deficit in 2012 by an
additional US$2.6 billion in 2014.
4.
The same assessment found other alarming trends with potential long-term
developmental impacts. It is expected that by the end of 2014, some additional 170,000 Lebanese
will be pushed into poverty, while 220,000-320,000 Lebanese citizens are expected to become
unemployed, most of them unskilled youth, thereby doubling the rate of unemployment to 20
percent. In education, 90,000 Syrian children are expected to enroll in public schools during this
1
As of April 10, 2014, 1,015,000 Syrians had registered or were awaiting registration with UNHCR. The UN and
the Government recognize that many more are in the country without registering the UNHCR due to a variety of
reasons, including fear of reprisals or lack of need of support provided by the humanitarian community.
2
Economic and Social Impact Assessment of the Syrian Conflict, World Bank, September 2013.
1
academic year, placing a heavy burden on an already stretched public education system. In terms
of health, the refugee influx has resulted in a sharp rise in communicable diseases, increasing the
risks of epidemics such as water borne diseases and tuberculosis. Lebanon’s urban infrastructure
was ill-prepared to cope with increased use from the refugees. The already cash-strapped and
under-capacitated local and municipal governments are severely impacted by the crisis as they
have to extend basic services and tend to the immediate needs of both refugees and host
communities.
5.
In spite of the social and economic burden placed on the Lebanese authorities and
communities, international support has largely focused on addressing the humanitarian needs of
the Syrian refugees. This has resulted in a widely held perception that Syrians are benefitting
disproportionally from the national and international response, irrespective of levels of poverty
or vulnerability. To address the needs of the host communities, a Roadmap for Priority
Interventions for Stabilization from the Syrian Conflict (Roadmap) was prepared by the
Government with support from the World Bank, the UN, the EU, and the IMF. The Roadmap’s
articulated goal is to stabilize and consolidate from the adverse impact of the Syrian conflict on
Lebanon and its population through the following key strategic objectives: i) restoring and
expanding economic and livelihood opportunities, particularly to vulnerable groups; ii) restoring
and building resilience in equitable access to and quality of public services; and iii) strengthening
social cohesion.
6.
It is at the local level where Lebanese and Syrians interact, share living space, and
compete for jobs and access to services and where local groups and authorities often end up
managing the rising social tensions. The sudden increased demand for services provided at the
local level, whether run by central or municipal authorities, has put mayors and municipal
councils under mounting pressure. The municipalities have been addressing the daily problems
of keeping up with the provision of municipal services (for example, solid waste generation has
doubled in several areas with high concentration of refugees, contributing to ground water
contamination, pollution of water resources and spread of water-borne diseases), while they have
also been asked to find solutions to basic social demands such as education and health, among
many. This is not a new role for municipalities, which have traditionally been at the forefront of
addressing the recurrent cycle of emergencies that have plagued Lebanon. In so doing, they have
been working across confessional barriers and political differences in a way close to impossible
for the central government, providing practical solutions in the face of an ever growing crisis.
B.
Situations of Urgent Need of Assistance
7.
This Project is being prepared and implemented according to Paragraph 11 of the World
Bank Operational Policy 10.00, which allows for certain exceptions to the investment project
financing policy requirements if the Bank deems the recipient to be in urgent need of assistance
as a consequence of events such as man-made disasters or conflicts. The evolving situation in
Lebanon reflects both the impact of conflict (in neighboring Syria) and of a man-made disaster
(resulting from the influx of refugees fleeing the conflict) – two specific situations that the
provisions were developed to address.
2
8.
Despite ongoing efforts to find a political resolution to the conflict in Syria, it seems
unlikely that refugees will be able to return to Syria in significant numbers anytime soon. As the
inflow of Syrians continues, there is an increasing need for donors to intervene promptly to help
alleviate the tensions on the already fragile situation in the country. In this context, the Bank’s
urgent support will contribute to lessen the strains in host communities and lowering social
tensions.
C.
Sectoral and Institutional Context
9.
Lebanon is a unitary state with four tiers of administration: Central, Mohafaza, Qaza, and
municipality. There are six administrative regions (Mohafazat), which in turn are divided into a
total of 26 Qazas. These two levels are in effect deconcentrated subdivisions under the Ministry
of Interior and Municipalities (MOIM) and they do not hold independent authority or budget.
Municipalities on the other hand are legal entities with jurisdiction to formulate and adopt their
annual budget; determine tax rates and fees to be collected as allowed by law; manage municipal
funds; and plan, improve, and expand urban roads and communal spaces and facilities.
10.
Municipal elections were reintroduced in 1998, and the number of municipalities has
continued to grow to the current total of 1006. Many of these municipalities have populations of
a few hundred people, a feature that has hindered a sustained and progressive building of
capacity, including in the adequate management of municipal finances to undertake the tasks
currently entrusted to them. This fragmentation has led to the establishment of unions of
municipalities, which are legal entities with financial autonomy. Unions facilitate the delivery of
common services, and often transcend confessional boundaries. They are created by a decree
from the Council of Ministers, upon the suggestion of the MOIM or the request of the
municipalities. They consist of two bodies: a decision making authority represented by the
mayors of member municipalities and an executive authority headed by the President of the
Council of the Union. Through the Council, municipalities may decide to deliver services or
implement projects of mutual interest. The Council also ensures coordination and resolution of
conflict between municipalities.
11.
The municipalities have been addressing the daily problems of solid waste collection,
water supply, water contamination, sewer, drainage, traffic management, safety issues, and social
aspects such as education and health. Lebanon’s local governments are suffering from a weak
local revenue base and are relying on central government transfers to finance the tasks described
above. Furthermore, both municipal revenues and expenditures have witnessed a major shortfall
in 2013 due to lower revenues to the Independent Municipal Fund, an entity responsible for
coordinating inter-governmental transfers. Even before the crisis, municipalities were facing a
backlog of investment needs far exceeding their available resources.
12.
The Bank has been engaged for quite some time in the municipal sector in Lebanon. In
2000, following the civil war, the Bank approved a US$80 million loan for the First Municipal
Infrastructure Project, aiming at restoring selected basic municipal infrastructure and enabling
municipalities to address local infrastructure maintenance and rehabilitation needs. In the
aftermath of the 2006 conflict with Israel, the Bank supplemented the loan with a grant focusing
on the restoration of basic services and on the development of the local economy. It was a highly
3
successful project which contributed to restoring and rebuilding public infrastructure in affected
municipalities and supported economic recovery and development in the areas that had suffered
the heaviest damage. The Bank has also been supporting urban development through the ongoing Cultural Heritage and Urban Development Project (CHUD), with the objectives of
creating the conditions for increased local economic development and enhanced quality of life in
the historic centers of five main secondary cities; and to improve the conservation and
management of the country's built heritage. This Project is implemented by the Council for
Development and Reconstruction (CDR), an autonomous Government entity directly
accountable to the Council of Ministers and responsible for numerous infrastructure projects
financed by domestic and/or external sources.
D.
Higher Level Objectives to which the Project Contributes
13.
Since the Lebanon FY11-14 Country Partnership Strategy (CPS) was prepared, the
situation in the country has changed significantly. The Government priorities have consequently
evolved, and are now focused on stabilization and short-term mitigation of the impact of the
Syrian conflict. These changes are reflected in the CPS Progress Report, dated April 18, 2013,
which highlights the exacerbating effect of the Syrian conflict on Lebanon’s fragile socioeconomic and political environment, as well as on the Bank’s portfolio. The report addresses the
need for seeking flexible adjustments to the Bank program where warranted, as well as
retrofitting projects in the existing portfolio to address increased service delivery needs, and
livelihoods support and safety nets in affected hosting communities, particularly in the
disadvantaged regions. With its expected benefits in the area of municipal services and social
cohesion, the Project is thus in line with the CPS Progress Report. In addition, the Project
remains consistent with the CPS’ original and strategic goals of improved economic
infrastructure through promoting balanced and sustainable territorial development, improved
municipal solid waste management, and increased water supply reliability.
14.
The Project is fully aligned with the Government’s priorities as they have emerged in the
wake of the continuing crisis in Syria. It is designed to support the Roadmap’s key strategic
priorities related to restoring and building resilience in equitable access to and quality of public
services and strengthening social cohesion. The proposed Municipal Services Emergency Project
is also specifically identified in the Roadmap, as it seeks to deliver emergency needs while
institutionalizing a mechanism for sustaining support to municipalities to help them deal with the
added pressures on their services. The Project will help the Lebanese address the increased
demand on municipal services (water and sanitation, solid waste management etc.) while seeking
to help the Government address the continued degradation of infrastructure at the local level.
15.
Recognizing the detrimental impact of fragility and conflict on the long-term
development trajectories of its clients, providing targeted support to address these situations is
becoming a key priority for the World Bank’s poverty-fighting mission. The operation is guided
by the analysis and recommendations stemming from the World Development Report (WDR)
2011 on Conflict, Security and Development, which highlights how citizens’ confidence in their
authorities and institutions is critical for stabilization and the reduction of fragility. While the
crisis is externally induced and causing limited direct damage to institutions and infrastructure,
its protracted nature and the inadequate response to address it is further undermining an already
weak social contract.
4
16.
While addressing an immediate and urgent crisis, the design of the Project ensures that it
is also contributes to the wider strategies of the Bank’s Middle East and North Africa Region
(MENA), as well as the Bank’s goals of ending extreme poverty and promoting shared
prosperity. The Project will target areas that are dually hit by poverty and refugee inflows,
thereby providing support to lagging regions for improved access to services in underserved
areas. Meanwhile, the demand-driven aspects of the Project will contribute to the empowerment
of local government and the strengthening of voice and citizen engagement. Finally, MENA’s
companion piece to the WDR 2012 on Gender Equality and Development Opening Doors:
Gender Equality in the Middle East and North Africa 2012 points out that broad-based, gender
neutral investments in service delivery such as water and sanitation can have significant impact
on health and mortality for women and girls. In addition, the study points out how women’s roles
in decision making can be enhanced at the local and community levels, leading to female
participation in civic life.
II. PROJECT DEVELOPMENT OBJECTIVES
A.
PDO
17.
The project development objective is to address urgent community priorities in selected
municipal services, targeting areas most affected by the influx of Syrian refugees. Municipal
services include solid waste management, water, wastewater and sanitation, roads (and related
services), recreational facilities and community activities.
Project Beneficiaries
18.
The proposed Project will initially support eleven unions, comprising their constituent
municipalities and covering an estimated population of about 1.1 million Lebanese and 250,000
Syrians. With a continuously evolving refugee situation, the Project will use a flexible and
programmatic approach that will allow further unions of municipalities to be included during
implementation should additional financing become available. The main Project beneficiaries
will be the residents in the targeted unions of municipalities affected by Syrian refugee inflows,
of which an estimated 300,000 will benefit from improved provision of municipal services and
communal activities as well as improved infrastructure reflecting the large increase in
population. The participatory mechanisms of the Project, targeting both hosts and refugees, will
promote inclusion and enhance the voice of the affected communities, especially women and
youth.
PDO Level Results Indicators
19.
Progress towards the PDO will be monitored through the following key indicators:



Direct Project beneficiaries (#), of which women (%);
Conflict affected people to whom benefits have been delivered within the first year of
Project effectiveness (#), of which: (i) women; (ii) host population; (iii) refugees.
Share of implemented subprojects that correspond to the priorities identified by unions of
municipalities (%).
5


Beneficiaries reporting improved level of sanitary and/or mobility conditions (%), of
which women (%);
Beneficiaries of mid-size rehabilitated/constructed infrastructure (#), of which women
(%).
III. PROJECT DESCRIPTION
20.
In response to the mounting needs of host communities, the proposed Project is designed
to provide rapid and visible improvements to the urban environment at the local level. The
Project will be part of a wider Bank program which includes support for social assistance and
livelihoods aimed at alleviating the burden put on poor households. The Project seeks to reduce
tensions in hosting communities through targeted interventions at the municipal level with a
focus on: (i) providing immediate stress relief through emergency services; (ii) ensuring the
preparation for a protracted displacement scenario by investing in critical infrastructure; and (iii)
supporting social initiatives that promote interaction and collaboration. The Project will focus on
improvements, upgrades and activities which are non-exclusionary in nature, and by
emphasizing the vulnerability - rather than nationality - of its beneficiaries, it will redirect the
focus on equity. By investing in municipal services, infrastructure and social activities, the
Project aims to address some of the urgent needs identified by the World Bank assessment and
will contribute to the strategic objectives of the Roadmap, namely restoring and building
resilience in equitable access to public services and strengthening social cohesion.
21.
The Project will promote a decentralized and consultative approach to emergency
response, whereby municipalities through their unions and in collaboration with their
constituencies will identify and prioritize the most urgent needs and appropriate interventions.
Rather than relying on a centralized plan of pre-identified solutions, the Project will use the
beneficiary municipalities’ and communities’ own understanding of their challenges and enable
them to find locally engendered opportunities and solutions. The unions will facilitate the
consultations, especially in the case of smaller municipalities, and play a critical role in ensuring
a meaningful participatory and inclusive process so that not only are local demands effectively
expressed and addressed in the best possible way but local governments are also empowered as
key drivers of local development and problem solving.
22.
In light of the limited financing envelope, the Project will initially target eleven unions of
municipalities that have been identified in collaboration with CDR. The targeting is based on a
list established by the UN agencies for refugees and children (UNHCR and UNICEF) and the
Government that identifies municipalities which are particularly impacted by the crisis due to the
ratio of Syrians to Lebanese and the level of poverty among the Lebanese population. The eleven
unions were chosen after screening this list against the following criteria and filters: (i) the
relative share and absolute number of refugees to the host population; (ii) security conditions
sufficiently stable for project implementation; (iii) absence of similar donor interventions to
avoid duplication; and (iv) readiness of counterpart agencies and subprojects.
23.
Based on the above selection criteria, the Project will target the following unions:
6
Union
Union of Al Buhaira
Municipalities
Union of Municipalities of Al
Sahel
Union of Kalaat el Estiklal
Union of Jabal El Sheikh
Union of Municipalities of
Central Bekaa
Union of Municipalities of Zahle
Caza
Union of Municipalities of
Baalbeck and Surrounding
Communities
Union of Municipalities of Tyre
Union of Municipalities of
Aarqoub
Union of Municipalities of
Central and Coastal Qayta’a
Union of Municipalities of Al
Shafat
Total
Number of
Municipalities in
the union
19
West Bekaa
Registered
Lebanese
population
99,100
12
West Bekaa
68,760
38,144
10
14
7
Rachaya
Rachaya
Central Bekaa
24,671
41,460
116,070
5,856
3,917
67,517
7
Zahle
84,800
28,171
8
Baalbek
134,200
24, 977
60
7
South Lebanon
Cheba’a area –
South Lebanon
Bebnine/Abdeh
area – Akkar,
North Lebanon
Halba area –
Akkar, North
Lebanon
282,768
70,000
28,062
3,803
89,100
20,315
84,800
13,810
11
11
Region
Number of Syrians
registered with
UNHCR*
15,801
166**
1,095,729
250,373
*Number of Syrians registered with UNHCR in a given union as of March 31, 2014. Source: UNHCR/CDR
** Given the limitations of the current available funding envelope, a number of municipalities in the targeted unions
may not initially benefit from Project interventions.
A.
Project Components
24.
The Project consists of three components: (i) Emergency Response; (ii) Rehabilitation of
Critical Infrastructure; and (iii) Project Implementation Support.
25.
Component 1: Emergency Response (US$ 3.5 million). This component will finance the
provision of high priority municipal services (Subcomponent 1A) and initiatives that promote
social interaction and collaboration (Subcomponent 1B) in the eleven participating unions of
municipalities. Allocation of resources among the participating unions of municipalities will be
related to the number of Syrians hosted, considering the number of Syrian refugees as a proxy of
the additional stress on local communities. Initiatives will be selected in consultation with
municipalities and communities, with a decentralized approach to decision-making. These
initiatives will provide non-exclusionary benefits addressing some of the most immediate service
needs in the unions most affected by the crisis and will be aimed at: (i) improving safety and
mobility; (ii) mitigating the increasing health and environmental risks associated with the
deterioration of water, waste, and sanitation services; and (iii) increasing collaboration and
interaction amongst the communities.
26.
Subcomponent 1A Service Delivery will focus on improving municipal service delivery in
areas such as water supply and wastewater, solid waste management, roads improvement, and
7
recreational facilities and community centers. Subprojects will be small in scale, and will,
depending on the expressed needs of communities and municipalities, include small works (such
as road maintenance), equipment (e.g. well generators, water filters for schools, etc.) and
services (e.g. surge capacity for garbage collection). For the first six months of project
implementation and in order to gain credibility, Subcomponent 1A will address immediate
service delivery requiring simple preparation, and will prioritize interventions identified by
elected officials at the union and municipal levels, which can deliver quick impacts in the areas
of water supply and wastewater, solid waste management, and local roads including street
lighting. Beyond this period, activities may also include interventions that require longer
preparation or implementation.
27.
Subcomponent 1B Community Activities will finance activities that the communities and
municipalities find conducive to reduce some of the social tensions stemming from cohabitation.
In light of the increasing youth unemployment, communities may demand activities that can
inform or engage the youth. Activities could also be targeting children through after school
activities or learning programs, as well as women by facilitating for example skills exchanges,
child care opportunities. They could also target the communities more widely through for
example informational campaigns related to water usage or town events and celebrations. It is
thus expected that the activities will be inclusive and socially cohesive, but with a particular
focus on women, children and the youth.
28.
Component 2: Rehabilitation of Critical Infrastructure (US$5.5 million). This
component will finance larger works to rehabilitate and/or develop critical infrastructure in the
areas of solid waste management, roads improvement, water and sanitation, and community
infrastructure. Anticipated types of infrastructure include waste sorting and composting plants,
small scale waste water treatment plants and rehabilitation of roads exceeding the union
allocations under Component 1. Due to their larger scale and costs, and given the existing
financing envelope, the initial number of unions benefitting from this component may be limited
and priority will be given to those demand-driven projects that can generate benefits to the
highest number of beneficiaries across several unions. These investments will be identified
through consultations between elected officials and community representatives, consolidated at
union level, and coordinated with relevant line ministries to ensure coherence with sector
policies.
29.
Component 3: Project Implementation Support (US$1 million). This component will
finance the management of the Project and any support needed for the implementation of the
decentralized, consultative approach. The component will cover the costs of the Project
Management Unit (PMU) housed in CDR, which will be responsible for implementing the
Project. The unit, which is already managing the CHUD project, will hire/supplement the
required staff to carry out the responsibilities of the PMU, including coordination, reporting,
financial management, procurement, social and environmental safeguards (see Implementation
Arrangements, Section IV). The PMU will also plan and implement a public outreach campaign
with the purpose of aligning communities and unions around the Project, as well as showcase the
Project results to other stakeholders, including central level agencies and potential donors.
Municipalities and/or unions (depending on size and capacity) will be in charge of undertaking
the consultations with their constituencies, using already established participatory mechanisms
8
and platforms where they exist. The first round of consultations will take place while the initial
activities under Subcomponent 1A are underway to gain credibility and deliver quick wins. For
the current funding envelope, it is anticipated that all subprojects under Component 2 will be
identified as well as approximately half of activities under Subcomponent 1B during this round.
It is expected that further rounds will be initiated to allocate the remainder of the funds under
component 1B, as well as for any additional contributions to the Project. The process will be
facilitated by teams of social and technical experts, who will help communities translate the
identified challenges into concrete proposals for infrastructure and social activities. Finally, the
component may also fund other activities deemed conducive to the promotion of decentralized
decision-making, such as knowledge-sharing events.
B.
Project Financing
Financing Instrument
30.
The Project will initially be financed through a grant from the Lebanon Syrian Crisis
Trust Fund (LSCTF) in the amount of US$10 million. The LSCTF is a Bank-administered multidonor trust fund that was established at the request of the Government so as to garner donor
support for the priorities identified in the Roadmap. The LSCTF has, in addition to a transfer of
US$10 million from the State and Peacebuilding Fund, received pledges in the amount of
approximately US$18 million from a number of bilateral donors. The trust fund is overseen by a
Steering Board which provides overall strategic direction and priorities for the program financed
by the LSCTF. For this Project, the funds from the LSCTF will be disbursed to the Government
on the basis of a Grant Agreement between the Government and the Bank. It is clear that this
initial amount falls short of addressing the evolving municipal needs, and efforts will be made to
leverage additional funds. Should such financing be made available by donors, this would be
processed as Additional Financing and the Grant Agreement between the Government and the
World Bank would be amended accordingly.
Project Cost and Financing
31.
The Project costs and financing are detailed in the table below.
Project Components
Component 1: Emergency Response
Component 2: Rehabilitation of Critical
Infrastructure
Component 3: Project Implementation Support
Total
Costs
(US$ M)
3.5
5.50
LSCTF
(US$ M)
3.5
5.50
1.00
10.00
1.00
10.00
C. Lessons Learned and Reflected in the Project Design
32.
Large scale refugee inflows have substantial development consequences for not only the
displaced but also the communities into which they settle. Approximately half of the world’s
9
displaced are currently settled in urban areas, contributing to the expansion and overcrowding of
informal settlements, increased demands for urban services, additional pressure on infrastructure
and the urban environment, new conflicts over land, and increased competition for employment,
housing, and social services. These stresses stretch the limited capacity of urban local
governments and service providers, especially when population movements are large and happen
quickly (Global Program on Forced Displacement 2014, Cities Alliance 2011). There is an
increasing global consensus that in order to safeguard the protection space for refugees,
responses to displacement crises have to concurrently address the stresses put on the hosts and
the humanitarian needs of the displaced. The Project will use the communities in the targeted
areas as point of departure, allowing unions of municipalities to offer services on a nonexclusionary basis to all residents.
33.
Letting affected communities decide on the local needs and priorities is a strong model
for ensuring relevance in dynamic and demographically diverse situations characterized by
fragility. Using a decentralized and consultative approach to allocative decisions can offer a
number of advantages in fast evolving situations where stresses and needs may be felt differently
from location to location. In cases of deciding on public goods investments, it provides an
opportunity to ensure that the benefits target vulnerable groups, including women and the poor.
In Lebanon, where host communities and incoming refugees have disparate needs and existing
coping mechanisms, giving the end users a choice can increase the relevance of interventions to
match the context of the given location. The Project will give the opportunity to communities,
municipalities and unions to decide on the priority interventions that can deliver visible benefits
which can have an immediate and direct impact their own lives.
34.
Taking advantage of existing implementation capacity and established structures
facilitates a rapid and effective response to an emergency situation. Evaluation of the World
Bank’s experience in responding to the global financial crisis indicates that, in the interest of
providing timely assistance, 74 percent of responses were channeled through existing programs.
This operation will benefit from the institutional arrangements and capacities already established
in CDR under the ongoing CHUD project in a broad range of areas such as working with
municipalities, delivery of infrastructure and services throughout Lebanon, as well as complying
with World Bank rules and regulations related to procurement, financial management (FM), and
safeguards.
35.
Opting for a flexible design facilitates the leveraging of donor funding for successful
projects in difficult and fluid country contexts. As development partners look for opportunities to
effectively deliver results in fragile and politicized environments, starting with a small and
scalable project design provides the opportunity for additional donors to contribute to the
deepening or widening of the project scope once the underlying approach has been tested. This
was recently done in Jordan, where a similar grant from the SPF leveraged an additional US$40
million in contributions from the Government and bilateral donors to widen the coverage of
support to refugee-affected municipalities in northern Jordan. Should additional financing
materialize, the Project can be scaled-up and expanded in a number of different ways depending
on donor preferences and the given needs of the hosting communities. While still conforming to
the approach and objective of the existing Project design, such expansion could be done either
by: (i) increasing overall financing according to the existing distribution between components;
10
(ii) adding more financing to one of the components; or (iii) targeting more refugee-hosting
unions.
IV. IMPLEMENTATION
A.
Institutional and Implementation Arrangements
Beneficiary communities, municipalities, and unions of municipalities
36.
The targeted communities will be consulted to establish Project priorities and
interventions through a process coordinated by the unions of municipalities, through their
member mayors and local councils. Based on this process, the unions will be in charge of
identifying the key local stresses and the related solutions that will be financed through the
Project. Unions of municipalities will assemble community representatives (such as community
leaders, and representatives of Civil Society Organizations (CSO) and the private sector,
including representatives of vulnerable groups such as women and the youth), who together will
prioritize the use of the available financing envelope. The involved stakeholders will decide on
their priority interventions to be financed related to emergency services, social activities and
medium-sized infrastructure projects. Sub-committees comprising representatives from civil
society and the targeted unions and municipalities will be formed to undertake community
monitoring of project implementation and impact.
37.







The unions and municipalities will take on the following key roles:
Identify priority service delivery interventions for component 1A;
Organize and facilitate the consultations with stakeholders, including prior and post
outreach and communication;
Work with and generate proposals from NGOs interested in implementing the community
activities under component 1B;
Provide their concurrence with the final design developed by CDR;
Monitor progress of implementation with the community monitoring subcommittees and
CDR and act as the main point of contact with the PMU to address bottlenecks and
challenges;
Participate in the monitoring and evaluation of Project inputs, outputs, and results; and
Be the first point of contact and responding authority for citizens seeking grievance
redress related to Project impacts.
Council for Development and Reconstruction (CDR)
38.
The management of all the Project components will be located within one single entity in
order to promote immediate implementation, facilitate economies of scale and scope in certain
activities, while also ensuring quality and efficiency. CDR’s mandate and experience has
revolved around development and post-conflict reconstruction in Lebanon, which along with its
long track record of successfully implementing Bank-financed projects, makes it the most suited
implementing agency for the Project.
11
39.
To ensure prompt and efficient implementation, the Project’s institutional set-up and
institutional arrangements will follow the systems and procedures that have already been
established under the CHUD project, which have proven to be time-tested and effective in
working with municipal stakeholders. The CDR, through its dedicated central unit as well as its
municipal-based technical cells, has developed a solid experience and knowledge in providing
sustained assistance to the municipalities on both technical and participatory aspects of project
implementation, as well as on Bank-related fiduciary and safeguard aspects. To facilitate the
process, the already existing safeguard documents prepared for the CHUD - the Environmental
and Social Management Framework (ESMF) and the Resettlement Policy Framework (RPF) –
have been revised and adapted to suit the specificities of the Project. Both have been disclosed in
Lebanon and on the Infoshop on April 18, 2014. The Project will thus use CHUD’s PMU and its
existing staff for project implementation and coordination. A financial officer from CDR’s
Finance Department will process all the Project’s financial transactions and prepare all financial
reports required by the Bank and other potential co-financiers of the Project. CDR will be able to
recruit additional technical, financial, and support staff if needed.
40.
CDR will support the unions and communities translate the identified priorities into
technical and financially sound interventions through a team of engineers and social scientists
who will participate in the community consultation meetings in order to: (i) provide technical
evidence of the current state of infrastructure, costs involved, etc.; and (ii) support the
consultation process with the communities, particularly regarding the selection and content of the
social programs. The technical experts will consult with relevant line ministries for coherence
with sector policies and then assess and prioritize the proposed subprojects based on their
potential number of beneficiaries, readiness, geographical coverage, and existing and
programmed investments in the sector and location. To safeguard the decisions stemming from
the unions and communities, CDR will send the final list and costing for each union as well as
the minutes of the consultations to the Heads of unions for their concurrence. Prior to launching
all major project interventions, CDR will need to provide the line ministries with all necessary
information for them to comment and suggest appropriate revisions within a timeframe of ten
business days.
41.
CDR will also be responsible for organizing the Project’s mid-term review with the
participation of key stakeholders. Given the volatility of the displacement and security situation
in Lebanon, the mid-term review would provide the stakeholders an opportunity to review results
to date, including inputs received from the community monitoring subcommittees, but also to
assess updated information related to changes in the displacement pattern with a view to adjust
targeting or allocations where necessary.
Lebanon Syrian Crisis Trust Fund (LSCTF)
42.
LSCTF is a Bank-administered multi-donor trust fund that was established in December
2013 in order to facilitate donor financing for the priorities set out in the Roadmap. It operates
under the auspices of the Prime Minister’s Office through a Steering Board comprising
representatives from the Government, the World Bank, the United Nations and contributing
donors. The Board is supported by a Technical Group responsible for selecting priority projects
12
outlined in the Roadmap. This Project was selected as the first project to be financed by the
LSCTF.
43.
CDR will report to the LSCTF according to the trust fund’s requirements. Should
additional financial contributions to the Project be made through the LSCTF, the Fund’s
Technical Group, supported by information and recommendations from the implementing
agency, CDR, would decide on the possibility of allocating additional funds in accordance with
the existing design of the Project. This would entail either an expansion of the envelope available
to the already identified unions of municipalities, or the identification of additional union(s) that
could participate in the Project using its established modalities and component allocations.
Other donor-financed projects targeting municipalities and host communities
44.
Although much of the donor support to Lebanon has been humanitarian in nature and
primarily targeting Syrian refugees, there has been increasing attention to addressing the needs of
host communities. A few donors have been directing their support to local governments and
communities, including UNHCR, UNDP and the EU. The Project will work closely with the
planned and existing initiatives targeting host communities. Where donor-funded initiatives are
closely aligned with the planned activities under the Project, such as the UNDP Host
Communities Support Programme or the EU support to municipalities through the Economic and
Social Development Fund, concrete collaboration is expected on issues such as targeting,
participatory mechanisms and monitoring and evaluation. Where there are common elements of
sectoral and/or geographical targeting with other development or humanitarian projects, the use
of common data and sharing of data and analysis will be sought through existing platforms. In
addition to the responsible Government entities, the Project will closely coordinate and
collaborate with a number of other bilateral and multilateral actors operating in Lebanon.
45.
Detailed description of implementation arrangements, including the functioning of the
citizen engagement in subproject identification and monitoring, will be given in the Project
Operational Manual (OM), which will be prepared and updated as required by CDR, and
approved by the Bank. The OM will be completed within thirty days of Project effectiveness.
B.
Results Monitoring and Verification
46.
Monitoring and evaluation (M&E) arrangements will be supported under Component 3:
Project Implementation Support (see detailed Results Framework in Annex 1). The Project will
track inputs, outputs and results through the following modalities:

On a routine basis, the Project will track expenditures and other fiduciary data relevant to
project implementation. This will be carried out by the PMU via semi-annual progress
reports and financial statements and annual financial audits by independent auditors
contracted under the Project. CDR will report on this data semi-annually to the World
Bank, the LSCTF and any potential donor partners.

On a half yearly basis, the Project will track key activities and outputs implemented at the
union/municipal level — for example, the number of community infrastructure
13
subprojects undertaken, the amount of solid waste collected or the number of household
wastewater connections provided, the number of community activities supported, and so
forth. This will be tracked by CDR with the help of the feedback from the community
monitoring subcommittees and a monitoring specialist hired under the Project who will
support the PMU and the unions on project monitoring aspects. Half yearly progress
reports prepared by CDR, and submitted to the Bank will report on key activities, outputs
and results.
47.
The CDR and the Bank team will undertake ex-post evaluations of the Project. This will
involve surveys of beneficiary households and other key stakeholders at key points during the
life of the Project. The evaluation design will employ appropriate evaluation techniques to
estimate Project-specific benefits and impacts. In addition, the Project will also benefit from the
knowledge being generated by other projects targeting refugee-hosting municipalities to gain a
better understanding of the efficacy of various intervention modalities. Several other donors,
including UNDP and the EU, are currently planning or implementing initiatives at the municipal
level using other institutional arrangements, targeting methodologies or priority investments. The
Project will collaborate closely with these and other projects as they may evolve in order to
create cumulative and comparative indicators suitable to inform the global efforts currently
underway to assist host communities cope with the massive population inflows.
A. Sustainability
48.
Component 1. Most activities proposed under the Project are within municipal
competence and routinely delivered by municipalities and unions of municipalities. The
interventions under this component will be small in scale and of an emergency nature, and they
are expected to be continued by the municipalities after Project closure. To facilitate
sustainability, the component will scale up service delivery in areas for which there is basic
capacity at the local level. However, with limited annual budget transfers from the Government
to municipalities, they may face challenges to sustain the level of services provided beyond the
Project’s duration. To facilitate sustainability, the beneficiary unions or municipalities will enter
into an agreement with CDR recognizing their ability to undertake the necessary operations and
maintenance (O&M) of the received interventions.
49.
Component 2. Regarding investments in medium-sized infrastructure under Component
2, the Project will cover the cost of rehabilitation or construction, and will require unions of
municipalities or relevant line ministries to cover the longer term O&M costs. To ensure
sustainability, CDR will liaise with the line ministries, to guarantee that for each investment: (i)
the entities to which the assets will be handed over are aware of the O&M implications; and (ii)
O&M budgetary implications are determined and agreed upon prior to construction.
50.
Capacity building to enhance O&M. Training will be organized for the benefit of
participating unions of municipalities and municipalities, enhancing their capacity to operate and
maintain their assets. The OM will include guidelines specifying the content of O&M training,
presenting regional best practices and incentive-based mechanisms and principles of costrecovery. In addition, it is proposed that a comprehensive O&M program be introduced at the
Project mid-term review, possibly in collaboration with other donor-supported programs
14
targeting the municipalities, to introduce more innovative approaches based on cost-recovery and
tariff compliance to the actual cost of services.
V. KEY RISKS AND MITIGATION MEASURES
A.
Risk Ratings Summary Table
Risk Category
Rating
Stakeholder Risk
Substantial
Implementing Agency Risk
- Capacity
Moderate
- Governance
Moderate
Project Risk
- Design
Moderate
- Social and Environmental
Moderate
- Program and Donor
Moderate
- Delivery Monitoring and Sustainability
Substantial
Overall Implementation Risk
Substantial
B. Overall Risk Rating Explanation
51.
The overall risk for this operation is “Substantial.” The unpredictable security and
political environment constitutes the main risk of the Project. Lebanon was governed by a caretaker Government for eleven months during the height of the Syrian crisis, and the new
Government which won the Parliament’s vote of confidence on March 20, 2014 has yet to
express how they are planning on mitigating the impact of the refugee inflows. While grantfinanced projects do not have to be ratified by the Parliament, they do have to be approved by the
Council of Ministers or by decree-law. Continued political inertia and institutional fluidity could
jeopardize the Government’s ability to make key decisions related to the Project, thereby
delaying implementation of the critical interventions planned for the immediate start-up phase of
the Project and at subsequent stages if the Project expands. The new Government is keen to
attract financing for the Roadmap, and has indicated that the operationalization of the LSCTF
and the implementation its activities will be key priorities. The Bank will continue its
engagement and dialogue with the Government to facilitate progress at key junctures.
52.
While CDR has proved to be a reliable and capacitated implementing agency for
development and reconstruction projects, there is a risk that its internal decision-making
procedures will be cumbersome for the small and rapid interventions anticipated under
Component 1 of the Project. This risk is mitigated by the fact that CDR will use its fast-track
15
procedures for contracting, whereby CDR’s Board can approve a program of activities rather
than the specific proposals, and subsequently conduct a post-review of the awarded contracts.
While the Project is designed to be scaled up, the current financing envelope and proposed scope
may lead to benefits being spread too thinly to have an impact should the Project fail to leverage
additional funding. This risk is mitigated by the Project's emphasis on delivering early and
visible results through low-cost interventions designed to improve the public environment for a
large number of residents in targeted unions. The Project's ability to provide immediate benefits
may also have the added value of attracting additional funding from other donors.
53.
In addition, the negotiations between municipalities within a union over the prioritization
of limited Project funds may pose significant risks. The inclusion of a wide range of
stakeholders, including vulnerable groups, will help guide the Project allocations to those areas
that are most under stress; however, competition over scarce Project resources may increase
tensions between unions or communities. The CDR will use its experience of mediating between
municipalities to guide attention to the areas which has experienced that highest increase in
population and deemed to be the most vulnerable, and preliminary social and conflict
assessments will be undertaken before the first round of community consultations. Furthermore,
procedures aiming at monitoring any negative social impacts will be specified in the OM and
carried out by the social specialists at the PMU. Finally, an important risk includes the ability of
unions and relevant line ministries to maintain the financed infrastructure. This will be mitigated
by the consultative processes where those ultimately responsible for any O&M costs are part of
the decision-making process.
VI. APPRAISAL SUMMARY
A.
Economic and Technical Analysis
54.
Methods for Economic and Technical Analysis. Analytical tools will be tailored to each
component, given their diverse scope. Component 1 aims at financing small-scale activities,
identified during implementation through consultations. During preparation, a positive list of
eligible activities has been identified. The priorities outlined by the unions will be screened by
CDR for technical feasibility. Subsequently, the technical analysis will translate into the
development of bill of quantities and technical specifications. Additionally, a comprehensive
analysis of a sample of 20 percent of these small investments will be carried out at the mid-term
and at Project closure. Such analysis will include a technical audit to verify the compliance of
works, goods, and services delivered with the technical requirements emerging from bidding
documents and a standard cost effectiveness analysis to estimate their economic impact.
Component 2 will finance medium-sized infrastructure investments, also in this case identified
during implementation through consultations. These investments will require more complex
preparation and will be subject to prior feasibility and cost benefit analyses, including calculation
of Net Present Value, Financial Internal Rate of Return and Economic Internal Rate of Return.
55.
Expected Economic Benefits. The Project has several expected economic benefits
justifying the investments in service delivery and social activities. Tangible benefits include
16
better services, improved enabling environment for business development, and positive
externalities for local economic development. Intangible benefits include enhanced social capital
through the social activities and the consultative processes underlying service delivery at the
local level.
56.
Rationale for Public Sector Intervention. Public sector provision and financing of
emergency local services are appropriate in this context as activities financed under the Project
will: (i) enhance the social capital and strengthen social accountability mechanisms; (ii) improve
access to and quality of services in the participating municipalities, targeting poor communities;
and (iii) alleviate pressures on the stretched public finances of local governments, since much of
the financing will support activities that local governments are mandated to deliver.
B.
Financial Management
57.
Project financial management arrangements, including accounting, reporting, and
auditing functions will be centralized at CDR. The flow of funds process will be undertaken
through a Designated Account (DA) to be opened for the Project and managed by CDR. The
consolidation of the Project financial reports will be done by the PMU and submitted to the Bank
along with the project progress reports.
58.
CDR has significant experience of implementing Bank-supported projects and providing
sustained assistance to municipalities on both technical and participatory aspects of project
implementation. CDR financial management (FM) performance on past and current projects is
considered satisfactory. It has a functional unit undertaking FM responsibilities, including funds
flow management, accounting, reporting, and facilitating an acceptable external audit. CDR’s
external auditor conducts the audit of the World Bank-financed projects.
59.
CDR’s main challenge related to FM is their lack of proper maintenance of asset lists.
CDR will operationalize the assets module of its accounting software to ensure proper
management of assets purchased under the Project in order to mitigate FM-related risks which
will be set forth in the Project OM.
C.
Procurement
60.
CDR has extensive experience in implementing donor-funded projects (among others the
EU, IBRD, and AFD). The Project will be implemented through the PMU currently managing
the CHUD project. The unit is well managed and staffed with procurement and technical
specialists as needed by the Project design. Diligence is observed in record keeping and quality
of evaluation. The procurement processing and contract management has been rated satisfactory
for the past two years. The unit is familiar with the Bank’s bidding documents and previous
bidding has been reviewed and was found acceptable by the Bank. The Project capacity
assessment identified risks related to: (i) delay in procurement processing and implementation;
17
(ii) readiness of the projects of intervention by Grant Agreement signing; (iii) coordination with
other concerned stakeholders, ministries, etc.; and (iv) contract management. The following
measures are proposed to mitigate these risks: (i) assigning project coordinators with the
appropriate decision making authority to interact with external partners, in particular
municipalities; (ii) deciding on a first tranche of subprojects to be immediately implemented and
within two months on a second tranche; and (iii) assigning field consultants to monitor contracts.
61.
The following Project procurement arrangements are envisaged:
a. Project guidelines: World Bank procurement guidelines apply to the Project.3
b. Procurement methods for goods and non-consulting service: The Project is expected to
use: (i) International competitive bidding (ICB); (ii) National competitive bidding
(NCB) for which shall be used either ICB -or a translated version- or develop Standard
Bidding Documents acceptable to the Bank as mentioned in clauses 3.3 and 3.4 of the
procurement guidelines; (iii) Shopping; (iv) Framework agreements; (v) Force account;
and (vi) Direct contract.
c. Selection of consultants: The Project is expected to conduct: (i) Quality-and-Cost-BasedSelection; (ii) Selection under a Fixed Budget; (iii) Least-Cost-Selection; (iv) Selection
based on Consultants’ Qualifications; (v) Use of Non-Governmental-Organizations; (vi)
Single Source Selection; and (vii) Selection of Individual Consultants.
d. Procurement plans: An initial procurement plan for the life of the Project has been
developed by the Government. It defines the thresholds for prior review procurement
methods and will be updated and reviewed by the Bank at least twice a year or as
deemed necessary. The initial procurement plan for the Project was agreed at
negotiations of the grant and is attached to the minutes of negotiations.
e. Prior Review threshold: Based on the satisfactory assessment, the Project shall be
subject to low risk prior review threshold, making the Project mostly subject to post
review.
f. Frequency of supervision mission and post procurement review: Foreseen twice and
once a year respectively. The post procurement review will cover a sample of t e n
percent of eligible contracts.
62.
Further details on Procurement arrangements are found in Annex 3.
D.
Environment (including Safeguards)
63.
The Project is classified as environmental category “B”, in accordance with Operational
Policy OP 4.01. Since exact subprojects are not determined at the onset of the Project4 and will
be decided during project implementation based on demand and consultations with the concerned
municipalities and communities, the appropriate instrument of OP 4.01 is an ESMF. It identifies
3
4
Refer to Annex 3 for a complete list of guidelines.
No subprojects of category “A” will be eligible for funding.
18
the policy triggers for the Project, the screening criteria of subprojects, the environmental and
social impacts for the likely subprojects and the mitigation measures to mitigate the identified
risks, assessment of the institutional capacity of the implementing agency and measures for
capacity-filling gaps, and an estimate of the budget needed for the implementation of the ESMF
and related instruments. The ESMF has been reviewed and cleared by the Bank, and disclosed
both in-country (CDR web site and at premises of concerned municipalities) and on the Bank
Infoshop on April 18, 2014.
64.
The Project is expected to produce substantial positive environmental impacts through
improved community service delivery. In terms of solid waste management, improved capacity
of the targeted municipalities is expected for collection, recycling, composting, and thus
reduction in landfill disposal. The interventions are expected to improve water supply to schools,
improved quality and continuity of wastewater networks collection and treatment. The
interventions for road rehabilitation and street lighting are expected to improve access and road
safety and reduce dust. The community centers, playgrounds, and gardens will improve the
overall environmental and social conditions in targeted communities. The negative impacts
anticipated for the Project activities are minor and of temporary nature during the construction
phase, including dust, noise, waste generation, disruption to traffic and movement, damages to
existing utilities, and easily mitigated by the environmental and social management plans
(ESMPs) that will be included in the bidding documents.
65.
CDR is familiar with the provisions of the Bank’s safeguards policies relevant to this
operation, herein the implementation and monitoring of the ESMF and related instruments due to
their experience with the CHUD project. Safeguards management of this operation will benefit
from the safeguards modalities established under the CHUD project, and will utilize and build on
the existing safeguards documentation and expertise. A summary of the ESMF provisions
including the screening mechanism of sub-projects, generic Environmental Management Plans
(EMP), and the requirements for specific EMPs and consultations are summarized in Annex 3
and detailed in the ESMF.
E. Social (including safeguards)
66.
The proposed Project is expected to yield significant social benefits, including increased
provision of municipal services and enhanced local economic development and livelihood
opportunities. The participatory mechanisms of the Project, targeting both hosts and refugees,
will promote inclusion and enhance the voice of the affected communities, especially women and
youth. The focus on social cohesion through strengthening of community coping mechanisms
and provision of social infrastructure will help reduce social tensions and ensure reliable access
to resources for the most vulnerable groups.
67.
The potential adverse social impacts are mainly related to the possible acquisition of land.
All activities financed by the Project are relatively small in terms of the total cost of each single
subproject. Land requirements are expected to be minor and subproject investments will be
19
carried out primarily on municipally owned lands, or other Government-owned lands. However,
project implementation may impact squatters or encroachers on Government-owned lands or
result in the involuntary taking of land. Since the location of subprojects cannot be determined
prior to project appraisal, an RPF is prepared to mitigate the potential resettlement impacts. The
RPF establishes the principles for resettlement impact mitigation and the organizational
arrangements for preparation and implementation of resettlement action plans which may be
needed during project implementation. The RPF summary is included in Annex 3.
20
Annex 1: Results Framework and Monitoring
REPUBLIC OF LEBANON
Municipal Services Emergency Project (P149724)
Results Framework
Project Development Objectives
The project development objective is to address urgent community priorities in selected municipal services5, targeting areas most affected by the influx of Syrian
refugees.
Project Development Objective Indicators
Cumulative Target Values
Indicator Name
Direct project
beneficiaries, of which
women6
Conflict affected people to
whom benefits have been
delivered within the first
year of project
effectiveness, of which: (i)
women; (ii) host
population; (iii) refugees7
Frequency
Data Source/
Methodology
Responsibilit
y for Data
Collection
Core
Unit of
Measure
Baselin
e
2014
2015
2016
2017
End
Target

Number,
%,
0
60,000
(50%)
150,000
(50%)
300,000
(50%)
300,000
(50%)
Annual
Surveys and service
delivery records of
CDR.
CDR
60,000
(30,000)
(40,000)
(20,000)
NA
NA
60,000
(30,000)
(40,000)
(20,000)
Annual
Surveys and service
delivery records of
CDR
CDR

Number
0
5
Municipal services include solid waste management, water, wastewater and sanitation, roads (and related services), recreational facilities and community
activities.
6
Direct beneficiaries include the Lebanese host population who will benefit irrespective of the number of Syrian refugees living in the participating
municipalities.
7
Conflicted affected people include both the Lebanese host population and the Syrian refugees living in participating unions of municipalities.
21
Share of implemented
subprojects that
correspond to the priorities
identified by unions of
municipalities
%
0
80
80
80
80
Annual
Beneficiaries reporting
improved level of sanitary
and/or mobility conditions,
of which women8
%
0
N/A
N/A
50
(50)
50
(50)
Number
0
N/A
N/A
TBD
TBD
Beneficiaries of mid-size
rehabilitated/constructed
infrastructure, of which
women9
Records of
consultations and
union lists, and
service delivery
records of CDR.
Unions and
CDR
One time
Surveys
World Bank,
CDR
One time
Service delivery
records of CDR.
CDR
Frequency
Data
Source/Methodology
Responsibility
for Data
Collection
Annual project
progress reports
CDR
Intermediate Results Indicators
Cumulative Target Values
Indicator Name
Core
Consultations held on
prioritization of
subprojects10
Beneficiaries that feel
project investments
reflected their needs, of
which women
Emergency service
delivery subprojects

Unit of
Measure
Baselin
e
2014
2015
(Year 1)
2016
(Year 2)
2017
(Year 3)
Number
0
9
18
18
Annual
%
0
N/A
N/A
50
(50)
One time
Surveys
World Bank,
CDR
Number
0
20
N/A
N/A
One time
Annual project
review mission aide
World Bank,
CDR
8
The target values will be further refined upon subproject implementation (Component 1).
The target values will be established once the nature of the subprojects have been identified by unions and municipalities during the first year of implementation
(component 2).
10
The project will also track the number and type of participants in the consultations, including the number of women.
9
22
completed or under
implementation in the first
six months after project
effectiveness
memoires, annual
project progress
reports
Annual
Annual project
review mission aide
memoires, annual
project progress
reports
World Bank,
CDR
80
Annual
Annual project
progress reports
CDR
100
Annual
Annual project
progress reports
CDR
Service delivery/
community subprojects
implemented in
participating unions11
Number
0
20
30
40
Unions implementing at
least one social activity
under Subcomponent 1B
%
0
20
50
Average completion rate of
infrastructure projects
under Component 2.12
%
0
0
20
Project Development Objective Indicators
Indicator Name :
Direct project beneficiaries (#), of which women (%).
Description (indicator definition etc.)
This indicator will track the total number of project beneficiaries and the
share of women beneficiaries in the total.
Conflict affected people to whom benefits have been delivered This indicator measures the number of men and women reached through
within the first year of project effectiveness (#), of which: (i) investments within the first year of the projects implementation cycle in
women; (ii) host population; (iii) refugees.
different communities. This reflects the conflict-responsiveness and
participatory nature of the project.
Share of implemented subprojects that correspond to the
priorities identified by unions of municipalities (%).
11
12
This indicator will measure the extent to which decisions about the project
reflected community preferences in a consistent manner.
Solid waste management, water, wastewater and sanitation, roads (and related services), recreational facilities and community social activities.
This indicator will be tracked every 3 months during the final year of implementation.
23
Beneficiaries reporting improved level of sanitary and or
mobility conditions (%), of which women.
This indicator will examine the impact of the small scale interventions
undertaken under Component 1.
Beneficiaries of mid-size rehabilitated/constructed
infrastructure (#), of which women (%).
This indicator will measure the number of beneficiaries of the
rehabilitation/construction of infrastructure projects implemented under
Component 2.
24
Annex 2: Detailed Project Description
REPUBLIC OF LEBANON
Municipal Services Emergency Project (P149724)
Background
1.
The Syrian conflict has had significant spillovers into Lebanon, causing profound negative
impacts on the country’s political, economic and social spheres. The crisis has exacerbated the
political divide along sectarian lines in Lebanon, leading to violent incidents across the country. The
arrival of a large number of refugees – an estimated 1.5 million, or over 25 percent of the country’s
population13 - has furthermore challenged the already delicate societal and inter-communal balance.
Overcrowding, saturation of basic public services and competition for jobs and livelihoods are
among the daily challenges faced by Lebanese and Syrians alike, leading to deteriorating social
relations between the two groups. Struggling Lebanese families witness visible and direct support to
their Syrian neighbors, which has resulted in a widely held perception that Syrians are benefitting
disproportionally from the national and international response with little support for the Lebanese
poor, the host families, and the returnees from Syria. With lingering crisis and limited support
targeting hosting communities, discontent within the Lebanese populations is on the rise, risking
increased insecurity within the Lebanese communities and threatening the safe asylum space for the
Syrian refugees.
2.
Among Syria’s neighbors, Lebanon has been most severely impacted by the conflict. The
country is in itself institutionally fragile and was managed by a caretaker Government for eleven
months during the height of the crisis. The situation has resulted in a drastic deterioration of the
security environment with a number of violent incidents that has been linked to the Syrian conflict.
The country has a long history of volatility and displacement, with many Lebanese having been
refugees themselves during previous conflicts. In addition, it experienced firsthand the potentially
explosive consequences of mass displacement, when violent conflict between the Lebanese Army
and the Fatah al-Islam group at the Nahr al-Bared refugee camp near Tripoli displaced some 2030,000 Palestinian refugees to neighboring communities. This experience now makes camps a
loathed solution in Lebanon and the country has therefore continued to resist the establishment of
dedicated camps for the Syrian displaced.
3.
Lebanon has seen some economic gains from the Syrian conflict and the subsequent exodus,
in particular at the outset of the crisis when trade and investments were redirected towards Lebanon,
and the more well-off Syrians with resources would move to the country. Three years into the
conflict, the costs far outweigh the benefits as the more destitute Syrians settle throughout the
country, putting unsustainable pressure on prices, land and housing, public services, and the job
market. Nowhere are these pressures felt more acutely than in the communities that in some cases
have seen a doubling of residents in a very short period and where the competition for jobs, housing
and access to services contribute to rising tensions between the two groups.
13
As of April 10, 2014, 1,015,000 Syrians were officially registered or awaiting registration with UNHCR. The total
number is estimated at 1.5 million.
25
4.
Lebanon’s service delivery mechanisms and infrastructure was grossly ill-prepared to cope
with the steep increase in population. Even before the crisis, municipalities were facing a decline in
their revenue base and a backlog of investment needs that was far exceeding available resources. The
sudden increased demand and utilization of services provided at the local level, whether run by
central or municipal authorities, has put mayors and municipal councils under mounting pressure by
their communities as they are affected by the visible decline in the level and quality of services. It has
been local actors, particularly the mayors, as well as charities and civil society organizations, that
have been on the frontline dealing with the many challenges faced by ever-expanding communities.
The Municipal Services Emergency Project (MSEP) will aim to support the communities most
impacted by the Syrian crisis address some of the main sources of tensions, whether related to
manifest service delivery, infrastructure, and/or social impacts of the inflow of refugees. Through the
direct engagement with communities, allowing them to express their most urgent needs, local
authorities will carry out urgent investments in areas ranging from traditional municipal services and
infrastructure to activities and initiatives that could ease cohabitation, and enhance local conflict
resolution.
5.
The Project will be part of a wider World Bank effort to support Lebanon mitigate the
impacts of the Syrian crisis. The Bank has been taking an incremental approach in its response to the
demands of clients and partners and has progressively expanded its support as the spillover
increasingly threatens regional peace and stability. This has involved: (i) working very closely with
the humanitarian community to build a continuum between humanitarian assistance and development
engagement; and (ii) supporting a continued safe asylum space for refugees, through helping the host
communities cope with the stress generated by the impact on services, jobs, and prices. The Bank
stepped in to assist host communities, first in June 2012, when the State and Peacebuilding Fund
(SPF) funded a US$900,000 project for education and livelihoods activities implemented by Save the
Children and Danish Refugee Council. The Bank also redirected about US$8.2 million in unused
funds from an earlier Lebanon Trust Fund financed from the IBRD surplus to help support an
existing priority national poverty program that is included in the Roadmap of Priority Interventions.
Similar considerations were taking into account in Jordan, where the Bank - through an SPF
contribution - is financing an Emergency Services and Social Resilience Project, also addressing
critical needs at the community level.
6.
Prior to the current refugee crisis, the Bank provided support to local communities affected
by external shock following the civil war as well as the 2006 conflict with Israel. In 2000 following
the civil war, the Bank approved a US$80 million loan for the First Municipal Infrastructure Project,
aiming at restoring selected basic municipal infrastructure and enabling municipalities to address
local infrastructure maintenance and rehabilitation needs. In the aftermath of the 2006 conflict with
Israel, the Bank supplemented the loan with a grant focusing on the restoration of basic services and
on the development of the local economy. This highly successful project directly benefited an
estimated 375,000 people through restoring and rebuilding priority public infrastructure in affected
municipalities back to or superior to pre-conflict conditions. It also supported economic recovery and
development in the areas that had suffered the heaviest damage, benefitting a population of about two
million, and strengthened the municipalities’ capacity to mitigate the impact of the hostilities on
municipal services within the context of developing the municipal sector.
7.
Taking into account the identified pressures mounting on host communities, the
Government’s priorities as expressed in the Roadmap, and the lessons learned from other Bank
projects, the proposed Project has been designed to reflect the following principles:
26



Reduce tensions in hosting communities through interventions targeting whole communities
rather than nationalities. The Project is expected to contribute to the reduction of tensions at
the local level through several elements: providing immediate stress relief through
emergency services to targeted unions focusing on quick impact interventions; ensuring the
preparation for a protracted displacement scenario by investing in critical infrastructure;
strengthening community cohesion through social initiatives and programs that allow
interaction and collaboration; and maximizing relevance and social resilience through
community engagement and participation in the identification of priorities.
Promote a decentralized approach to emergency response to increase relevance. The Project
will embed a decentralized approach to decision making, whereby municipalities through
their unions and in collaboration with their constituencies, will identify and prioritize the
most urgent needs and corresponding actions. As needs far outweigh the available funding,
the benefits of the Project will be distributed in a manner that reflects the unique
understanding and existing capacities within the affected areas, hence increasing relevance.
As the local authorities will be leading the process, the Project will empower mayors and
municipal and union councils as key drivers of local development and well-being.
Leverage existing implementation capacity for the delivery of rapid results. While decisionmaking will have a decentralized approach, harmonized procurement by a single
implementing entity will allow for economy of scale and the delivery of timely results on the
ground. Heeding consistent lessons from previous Bank emergency projects, the Project will
use tested implementation mechanisms and entities to safeguard the emergency character of
the Project and ensure visible and high-quality benefits in participating municipalities and
unions from the early stages of the Project.
8.
Given its limited financial envelope, Project implementation will begin in a restricted number
of unions of municipalities for meaningful impact and with the expectation that it could be extended
to a larger territory upon availability of additional funding. In an effort to identify the most affected
areas in Lebanon, UNHCR, UNICEF and the Government have prepared a list of the most vulnerable
municipalities based on municipal level data collected by UNHCR during their refugee registration
process, in combination with the estimated number of Lebanese and the level of poverty. To further
target unions within this list, additional criteria and filters were added including: (i) the relative share
and absolute number of refugees to the host population; (ii) security conditions sufficiently stable for
Project implementation; (iii) absence of similar donor interventions to avoid duplication; and (iv)
readiness of counterpart agencies and subprojects at the local level. This resulted in the identification
of the following eleven unions that will be initially targeted for Project support:
Union
Union of Al Buhaira
Municipalities
Union of Municipalities of
Sahel
Union of Kalaat el Estiklal
Union of Jabal El Sheikh
Union of Municipalities of
Central Bekaa
Union of Municipalities of
Zahle Caza
Union of Municipalities of
Number of
Municipalities in
the union
19
Region
West Bekaa
Registered
Lebanese
population
99,100
12
West Bekaa
68,760
38,144
10
14
7
Rachaya
Rachaya
Central Bekaa
24,671
41,460
116,070
5,856
3,917
67,517
7
Zahle
84,800
28,171
8
Baalbek
134,200
24, 977
27
Number of Syrians
registered with
UNHCR*
15,801
Baalbeck and Surrounding
Communities
Union of Municipalities of
Tyre
Union of Municipalities of
Aarqoub
Union of Municipalities of
Central and Coastal Qayta’a
60
South Lebanon
282,768
28,062
7
Cheba’a area –
South Lebanon
Bebnine/Abdeh area
– Akkar, North
Lebanon
Halba area – Akkar,
North Lebanon
70,000
3,803
89,100
20,315
11
Union of Municipalities of Al
11
84,800
13,810
Shafat
Total
166*
1,095,729
250,373
*Given the limitations of the current available funding envelope, a number of municipalities in the targeted unions
may not initially benefit from Project interventions.
9.
The Project’s support to the eleven unions of municipalities will follow the above-mentioned
approach and principles and will be implemented through three components, as outlined below.
Component 1: Emergency Response (US$3.5 million)
10.
This component will provide non-exclusionary benefits at municipal level that extend
uniformly across hosts and refugees, blending interventions in service delivery with social-oriented
activities to ensure complementarity and maximize impacts. The component will finance small
activities having high potential gains that unions of municipalities and communities deem priorities,
and will focus largely on public goods that will benefit the community as a whole, herein improving
service delivery and enhancing social cohesion. The two types of activities will be kept separate in
dedicated subcomponents to encourage unions of municipalities and communities to take advantage
of both kinds of interventions.
11.
Activities under Component 1 will be identified by the communities and unions of
municipalities themselves through an inclusive consultative approach led by local governments,
involving elected officials and community representatives. Allocation of resources among the
participating unions of municipalities will be related to the Syrians hosted, considering the number of
Syrian refugees as a proxy of the additional stress on local communities. Prioritization will be based
on a demand-driven, decentralized process, which will empower the unions of municipalities and
involve a broad range of stakeholders, including mayors, and representatives from civil society, the
community at large and the private sector (see description of the consultation process under Annex
3).
12.
Subcomponent 1A. Service Delivery. This subcomponent will finance small-scale
interventions aimed to improve service delivery at the local level in areas such as:
a.
Water supply and wastewater;
b.
Solid waste management;
c.
Roads improvement; and
d.
Recreational facilities and community centers.
The interventions identified and prioritized by unions of municipalities and the communities will be
communicated to the implementing entity, which will use its fast-track procedures for contracting out
implementation. Contract bundling across unions will allow for economy of scale and delivery in
multiple locations in a reduced timeframe, thus addressing urgent needs.
28
13.
To gain credibility with communities and municipalities through the provision of quick
results, the Project will commence with a six-month inception phase where eligible activities will be
limited to the delivery of visible and rapid improvements that do not require complex design or
lengthy delivery. During this period, unions of municipalities will decide from a limited menu of
high priority services, chosen for their ability to be implemented without lengthy preparation or
delivery time. Through consultations with local authorities, the following services have been
identified as commonly needed:
a.
Water supply and wastewater, including inter alia: pumps and generators for existing
wells14; water filters; maintenance of existing water supply networks; maintenance of
existing waste water networks; declogging of sewers; roof water-tanks; and rainwater
basins;
b.
Solid waste, including inter alia: collection of garbage; cleanup campaigns; cleaning
equipment; and garbage bins15;
c.
Roads improvement, including inter alia: paving repair; drainage; sidewalk maintenance;
asphalting; solar street lighting and street lighting maintenance; and
d.
Rehabilitation of small-scale community facilities, including inter alia: playgrounds;
public schools; main water tanks; and gardens.
14.
The subcomponent will also be able to finance activities for which procurement or
contracting could still start quickly, yet results would need more time for technical reasons. Under
the same technical groupings as above, these activities could include small works needing more
detailed design, as well as the purchase of mechanical equipment such as solid waste compactors,
declogging trucks, excavation equipment and public health equipment. The component may also
include other types of activities based on local demand, and within the allocation specific to each
union. The activities will cover publicly owned assets and any equipment purchased under the project
will be handed over to public entities.
15.
Subcomponent 1B. Community Activities. This subcomponent will finance initiatives that can
enhance social cohesion by facilitating interaction and collaboration among residents in the targeted
areas. The specific activities will be identified by the communities and unions of municipalities
themselves, but could inter alia include initiatives such as the establishment of sport teams/leagues,
study groups or courses, play groups, skills exchange, organization of awareness campaigns and
collective action, etc. that would be open to all members of the community. Following the
identification of activities, the unions of municipalities will engage directly with NGOs, CSOs and
other relevant entities to generate proposals for implementation.
Component 2: Rehabilitation of Critical Infrastructure (US$5.5 million)
16.
This component will focus on the rehabilitation and provision of medium-sized infrastructure
with the highest number of potential beneficiaries, with the objective of increasing the self-reliance
of communities facing fluctuating population pressures. Investments will be decided upon by unions
14
Excavation of new wells of any nature is excluded from the project as studies on the rechargeability of the water
table are beyond the scope of the project. Additionally, pumps can be provided only for publicly owned wells that
are already operational and active.
15
The procuring of garbage bins will only be eligible in areas that have existing collection systems to avoid potential
incompatibility with future equipment.
29
and their communities to ensure broad value and utility. The component could finance critical
infrastructure in areas such as:
a.
Water supply and waste water;
b.
Solid waste management;
c.
Roads improvement; and
d.
Recreational facilities and community centers.
17.
Activities financed under Component 2 will be identified through a three-phased approach:
(i) unions and technical specialists from CDR will make initial assessments of the cost, coverage and
beneficiaries of potential subprojects; (ii) consultations between communities, municipalities, and
union of municipalities will identify the priorities related to larger infrastructure investments; and
(iii) assessments of the proposed projects from a technical perspective with a view to prioritize them
based on their potential number of beneficiaries, readiness, geographical coverage, and existing
investments and plans in the sector and location. The consultative process will also allow for the easy
identification of additional infrastructure projects to be financed should additional donor financing
become available.
Component 3: Project Implementation Support (US$1 million)
18.
This component will finance the management of the Project, including coordination,
reporting, financial management, procurement, and social and environmental safeguards. The
component will also support the decentralized decision making and consultative processes through
which identification and prioritization of activities will be determined by local communities, bringing
together a range of local stakeholders including elected officials, community leaders, civil society,
and the private sector. Public outreach and dissemination of Project information will be prioritized at
critical junctures of project implementation, such as before and after consultations, and in connection
with the scheduled monitoring and evaluation activities.
19.
Municipalities and their unions - in particular the mayors as elected representatives of their
constituencies - will lead the organization, implementation and reporting on the consultations with
support from the implementing agency as needed. The unions and municipalities will be encouraged
to use already established participatory mechanisms and platforms (including those used by the
Social Development Centers under the Ministry of Social Affairs) where they exist. The community
monitoring subcommittees will be formed based on these platforms, with the unions participating in
and acting as secretariat for the committees. It is envisioned that the first round of consultations will
take place during the first months of project implementation while the initial activities under
Subcomponent 1A are underway. For the existing financing envelope, these consultations will
allocate Component 2, and approximately half of Subcomponent 1B. Further rounds would be
initiated to allocate the remainder of the funds under Subcomponent 1B, as well as for any additional
contributions to the Project. The process will be facilitated by teams of social and technical experts,
who would help communities translate the identified challenges into concrete proposals for
infrastructure and social activities.
30
Annex 3: Implementation Arrangements
REPUBLIC OF LEBANON
Municipal Services Emergency Project (P149724)
A.
Project Institutional and Implementation Arrangements
1.
The institutional and implementation arrangements for the Project will emphasize simplicity,
keeping in mind the emergency nature of the prosed interventions. To ensure prompt and efficient
implementation, the Project’s institutional set-up and institutional arrangements will follow the
systems and procedures that have already been established under the ongoing Cultural Heritage and
Urban Development Project (CHUD), which have proven to be time-tested and effective in working
with municipal stakeholders. A detailed description of implementation arrangements and activities
will be provided in the Project Operational Manual (OM), which will be prepared and updated by
CDR, and approved by the Bank.
2.
CDR will be the Project implementing agency. CDR is a public authority established as the
Government’s arm for planning and implementing projects for economic development and for the
rehabilitation and reconstruction of public infrastructure. To ensure effective and timely
implementation, CDR has been granted exceptional authority and is exempted from laws and
regulations otherwise applicable to the public administration. It is subject to special control
regulations specified in its own Law. CDR is in charge of planning and implementing major and
medium-sized infrastructure projects in urban services, such as water supply, sanitation, waste water
treatment and solid waste management. It also has developed a solid experience and knowledge in
providing sustained assistance to the municipalities on both technical and participatory aspects of
project implementation. Finally, CDR has a long and on-going experience with the Bank and other
donor agencies and is fully familiar with Bank-related fiduciary and safeguard requirements.
3.
Within CDR, the Project will be coordinated by the Project Management Unit (PMU) already
managing the CHUD project. The PMU has a simple management structure and consists of a limited
number of qualified professionals. Some additional specialized expertise will be hired to support the
implementation of some of the particular features of the Project. Overall, the unit will include: a
Project Manager in charge of contract management; a Project Coordinator in charge of operations; a
team of engineers and social scientists, two procurement specialists, and one officer in charge of
monitoring and evaluation (M&E) as well as dissemination and public outreach. The team will be
expected to work on both this Project and CHUD. A financial officer from CDR’s Finance
Department will process all the Project’s financial transactions and prepare all financial reports
required by the Bank and other potential co-financiers of the Project. CDR will be able to recruit
additional technical, financial, and support staff if needed. All posts have clear Terms of Reference
and measurable performance indicators that are reviewed annually.
4.
Due to the emergency nature of the Project and the considerable number of smaller contracts
that it will generate, CDR has agreed to use its fast-track procedures to implement Component 1.
Practically, this means that the CDR Board can approve a program of activities (e.g. the social
activities anticipated under Subcomponent 1B) rather than the specific proposals. This can advance
the preparations of individual proposals for immediate contracting of the chosen implementing
entities (NGOs, contractors etc.). The CDR Board will conduct a post-review of the awarded
contracts. It is expected that for component 1, CDR will be able to sign contracts with contractors
within two months of subproject identification.
31
5.
The PMU will be responsible for the Project’s overall coordination, management and
monitoring. The key tasks will include:

Coordination and management of project implementation, which will involve, inter alia: (i)
overall monitoring of all Project-related components and activities; (ii) technical assistance to the
municipalities and heads of unions of municipalities in their management of the participatory
process; (iii) procurement and contract management of all Project activities; (iv) fiduciary and
safeguards compliance; (v) preparation, updating, obtaining approvals, distribution and dissemination
of the Project OM; (vi) organization of training and orientation sessions for key Project stakeholders,
including on the operation and maintenance of financed subprojects; (viii) carrying out various
project related surveys and studies, as needed; and (ix) planning and implementing the Project midterm review.

Implementing all Project-related reporting and communication activities, including: (i)
reporting to the Government, the Steering Board of the LSCTF, donors and other stakeholders, as
relevant; (ii) preparing bi-annual Project reports; and (iii) organizing and implementing outreach and
communications activities related to the Project.
6.
The mayors, through their unions of municipalities, will be leading the identification and
prioritization process of subprojects with the involvement of host communities in the targeted unions.
Each union of municipalities with their member mayors will convene a meeting with community
representatives (such as community leaders, and representatives of CSOs and the private sector,
including representatives of vulnerable groups such as women, youth and the poor) who together will
prioritize the use of the union’s available financing envelope. During this meeting, the involved
stakeholders will decide on the priority interventions to be financed. They will also select
subcommittees consisting of 2-3 representatives of the beneficiary community plus a representative
from the union or municipality, who will undertake regular monitoring of the implementation of
subprojects in their area. To support the technical aspects of the consultations, a team of engineers
and social scientists from the PMU will stand ready to advise the consultation parties. It is expected
that the first consultation process will take place within the first two months after Project
effectiveness and repeated according to Project need and available financing.
7.
While the identification for all types of Project activities will be undertaken during one
meeting, the consultations will be placed somewhat differently across the various components:
(a)
For the immediate activities under Subcomponent 1A, mayors through their unions will
decide on the interventions to be financed for the first six months based on a limited positive
list in advance of Project effectiveness and without community consultations.
(b)
For Subcomponent 1B, consultations will establish the overall content of the social activities
to be funded. A smaller and more targeted round of consultations will then be called between
the unions and the relevant NGOs operating in the area, to generate specific proposals from
entities interested and capable of implementing the identified activities.
(c)
For Component 2, the unions together with engineers from CDR will conduct initial technical
assessments of the various potential infrastructure projects that could be financed in the
targeted area in order to assess their costs, coverage, beneficiaries etc. Such information will
provide the basis upon which unions and community representatives can make an informed
decision on which projects to prioritize.
32
8.
Upon completion of the consultations, the unions will transmit the list of identified priorities
to the CDR as implementing agency. To safeguard the decisions stemming from the unions and
communities, CDR will send the final list and costing for each union as well as the minutes of the
consultations to the Heads of unions for their concurrence. Whilst CDR will handle both procurement
and payments, the mayors and unions of municipalities will be responsible for following-up on work
progress. They will also coordinate all social activities and will implement them either directly or
with the help of NGOs.
9.
The OM will establish the guidelines for the composition of the consultative forums,
including minimum requirements regarding representation of women, youth, and vulnerable groups.
Local social organizations (NGOs, CSOs, charities, etc.) will be expected to contribute to the
process. Selection criteria for these groups will also include whether they explicitly represent the
interests of women and youth. The local communities and organizations will be consulted throughout
Project implementation and will be able to track progress and results through the publication and
dissemination of relevant Project information. The team of social scientist will conduct preliminary
social and conflict assessment in advance of the first round of consultations in order to get a better
understanding of the currently social dynamics and trends, and using this information to: i) prevent
any negative social impacts stemming from the Project approach; and ii) better support the
communities in the identification of activities under Subcomponent 1B.
10.
CDR will report to the LSCTF according to the trust fund’s reporting requirements and as
further detailed in the Project OM. CDR will also be responsible for providing the LSCTF with
adequate information and recommendations should additional financial contributions to the Project
be made available. The LSCTF Steering Committee will decide upon the allocation of the additional
funds following the existing design of the Project. This could entail either an expansion of the
envelope available to the already identified unions of municipalities or the identification of additional
union(s) that could participate in the Project using its established modalities and component
allocations.
11.
The Project will coordinate closely with Bank-financed projects such as the Social Promotion
and Protection Project and the CHUD, as well as other donor initiatives targeting municipalities and
host communities. Although much of the donor support to Lebanon has been humanitarian in nature
and targeted primarily at Syrian refugees, there has been increasing attention to addressing the needs
of host communities. A few donors have been directing their support to municipalities and
communities, including UNHCR, UNDP and the EU. UNHCR funding is largely channeled through
UN agencies, including UNDP, and is primarily responding to urgent needs for minor rehabilitation,
procurement of equipment for solid waste management, water, and other social activities. UNDP has
mobilized over US$20 million from various donors for support at the local level with a focus on three
main areas: i) livelihoods and economic development; ii) social cohesion; and iii) social (municipal)
services. UNDP’s program will initially cover 19 municipalities. The EU is channeling US$16
million through the Economic and Social Development Fund, financing municipal services in the
North. The EU is also financing US$14 million worth of larger solid waste infrastructure
rehabilitation (sanitary landfills) and equipment in six additional municipalities.
12.
The Project will work closely with these planned and existing initiatives targeting host
communities. Where donor-funded initiatives are closely aligned with the planned activities under
MSEP, such as the UNDP Host Communities Support Programme or the EU support to
municipalities through the Economic and Social Development Fund, concrete collaboration is
expected on issues such as targeting, participatory mechanisms and monitoring and evaluation.
33
Where there are common elements of sectoral and/or geographical targeting with other development
or humanitarian projects, the use of common data and sharing of data and analysis will be sought
through existing platforms. In addition to the responsible Government entities, the Project will
coordinate and collaborate with a number of other bilateral and multilateral actors operating in
Lebanon.
B. Financial Management, Disbursements and Procurement
Financial Management
13.
Staffing: CDR’s Funding Division, currently handling the FM arrangements related to other
Bank-financed projects will support the FM of the Project. The CDR FM team has adequate
experience in managing World Bank financed projects and has acquired the appropriate knowledge
of the World Bank’s FM reporting requirements.
14.
Project Accounting Software: CDR has customized accounting software in place that has
been used for the FM implementation of previous Bank-financed projects. The software will also be
used for this Project to record accounting transactions and generate the Project’s Interim Un-audited
Financial Reports (IFRs). The FM unit of the CDR Funding Division will be responsible for
recording the daily transactions in the accounting system and ensuring that the required project IFRs
are issued on quarterly basis for submission to the Bank.
15.
Internal Control: CDR has adequate internal controls in place for preparation and approval of
transactions and segregation of duties related to Bank-supported projects.
16.
Budgeting and Flow of Funds: Project allocations and categories of expenditures will be
disclosed in the financing agreement to be approved by the Council of Ministers. Quarterly and
annual budgets and periodical disbursement plans will be maintained by CDR based on the Project
procurement plan and implementation schedule to ensure timely availability of funds. It will be used
as a tool for comparing planned and actual expenditures and monitoring any variances. Advances
will be channeled through the Ministry of Finance Treasury Account for Donations & Grants to the
account of the Council of Ministers and then will be transferred without further delay to the
Designated Account (DA) opened under the Treasury Account at the Central Bank of Lebanon
(CBL) for the Project. Disbursement methods will include advances, replenishments,
reimbursements, and direct payments. In requesting disbursements into the Treasury Account and
then to the Council of Ministers account to be transferred to the DA for expenditures incurred, CDR
will make use of a Statement of Expenditure (SOE) record according to nature of expenditure and
threshold. Disbursements for services and goods exceeding the set thresholds would be made in
accordance with respective procurement guidelines and provisions in the financing Agreement and
Disbursement Letter against submission of full documentation and signed contracts.
17.
SOE will be used to accompany requests for Reimbursement of Reporting Expenditures from
the DAs. Record of Expenditure will be required for all Withdrawal Applications except for (a)
works contracts less than US$ 500,000, (b) goods and non-consulting services contracts less than
US$ 250,000, (c) consulting firm contracts less than US$ 100,000 and (d) individual consultants
contracts less than US$ 50,000. Disbursements for services and goods exceeding the foregoing limits
would be made in accordance with respective procurement guidelines and provisions in the Grant
Agreement and Disbursement Letter against submission of full documentation and signed contracts.
34
18.
Interim Un-audited Financial Reports (IFRs): The Project’s IFRs, prepared in accordance
with International Public Sector Accounting Standards (IPSAS) – Cash Basis and generated through
the Accounting System, will be sent to the Bank no later than 45 days after the end of each quarter.
The format and content of the IFRs was agreed with CDR during Project preparation and will be
confirmed during negotiations. The IFRs will be composed of:
(a)
Statement of Cash Receipts and Payments by category for the year ending and cumulatively
from inception date to the year ending,
(b)
Accounting policies and explanatory notes including a footnote disclosure on schedules:
(i) Statement of DA reconciling opening and end balances for the period;
(ii) Statement of project commitments, showing contract amounts committed, paid, and
unpaid under each project’s signed contract;
(iii) Statement of expenditures by category for the quarter and cumulative; and
(iv) A comprehensive list of fixed assets.
19. Project Financial Statements (PFS): The PFSs, prepared in accordance with IPSAS – Cash Basis
- should contain the same information as the quarterly IFRs but cover an annual period. The audited
PFS would be submitted to the Bank no later than six months after the end of each fiscal year 16 .
20. External audit: The PFS will be audited by an independent private external auditor acceptable to
the World Bank. The audit will be comprehensive and will cover all aspects of the Project, including
review of effectiveness of the internal controls system, and compliance with the Financing
Agreement. The audit will be carried out in accordance with International Standards on Auditing.
The audit report and PFSs, along with management letter, will be submitted to the Bank no later than
six months after the end of each fiscal year. In addition, the project management letter will contain
the external auditor assessment of the internal controls, accounting system, and compliance with
financial covenants in the financing Agreement. The audit terms of reference will be finalized and
agreed upon with the Bank three months after Project effectiveness. The external auditor is expected
to be engaged within six months of Project effectiveness. Moreover, according to the new Bank
disclosure policy effective July 1, 2010, the Bank makes publicly available the borrowers’ audited
annual financial statements for all investment lending operations for which the invitation to negotiate
is issued on or after July 1, 2010, as per OP/BP 10.02, Financial Management. Accordingly, this
Project’s audited annual financial statements will be made available to the public.
Disbursement Arrangements
21.
The proceeds of the grant will be disbursed in accordance with the Bank's disbursements
guidelines for projects and as outlined in the Disbursement letter. Transaction based disbursement
will be used under this Project. Accordingly, requests for payments from the grant will be initiated
through the use of Withdrawal Applications either for Advances, Reimbursements, Special
commitments and Replenishments to the MOF Treasury Account for Donations and Grants to be
transferred to the Council of Ministers account and then transferred to the DA of the project. All
Withdrawal Applications will include appropriate supporting documentation including detailed
Statement of Expenses for reimbursements and replenishments.
16
Project fiscal year ends December 31.
35
22.
A.
The following table indicates the grant allocation and disbursements by component:
Component
Component 1 : Emergency
Response
Component 2 : Rehabilitation
of critical infrastructure
Component 3 : Project
Implementation Support
Total
Amount of the grant
Allocated (in US$)
3,500,000
5,500,000
1,000,000
10,000,000
23.
E-Disbursement. The World Bank has introduced e-disbursement for all Lebanon supported
projects. Under e-disbursement, all transactions will be conducted and associated supporting
documents scanned and transmitted online through the Bank’s Client Connection system. Edisbursement will considerably speed up disbursements and facilitate project implementation.
24. A DA will be opened for this Project under the Treasury Account of the Ministry of Finance and
will be managed by CDR. The funds will be transferred first from the World Bank to the Ministry of
Finance’s Treasury Account for Donations and Grants and then will be transferred to the Council of
Ministers account and finally to be transferred to the project DA. The disbursement methods will be:
advance, direct payments, reimbursement, and special commitments. The minimum amount per
withdrawal application will be 20 percent of the Designated Account Advance for Direct Payment,
Reimbursement and Special Commitment Issuance applications. Project disbursement guidelines are
documented in the disbursement letter. All documentation showing expenditures shall be retained by
CDR and shall be made available to the Bank and its representatives for audit, if requested.
25.
The Bank will honor eligible expenditures completed, services rendered and goods delivered
by the Project closing date. A four months' grace period will be granted to allow for the payment of
any eligible expenditure incurred (i.e. services, goods or works, received and accepted) before the
grant closing date.
26.
Authorized Signatories: Authorized signatories will be nominated by CDR to sign the
withdrawal applications. Names and corresponding specimen of their signatures will be submitted to
the Bank prior to the receipt of the first withdrawal application (advance to DA). Each application
will be approved and signed by the authorized signatories.
27.
Governance and Anti-Corruption: Fraud and corruption may affect the Project resources,
thus negatively impact outcomes. The World Bank FM team worked closely with the Project team to
develop an integrated understanding of possible vulnerabilities and agreed on actions to mitigate the
risks. Having CDR managing the Project’s FM procedures increased the FM capacity of the Project
and enhanced control procedures over payments. CDR’s substantive experience in implementing
Bank financed projects, the above proposed fiduciary arrangements and reporting, and the required
external audit are expected to address the risk of fraud and corruption. In addition, the monitoring
and evaluation function would contribute to improved efficiency and transparency. The Bank will be
following closely on all activities in order to ensure that the funds will be used for their intended
purposes and will coordinate with all concerned departments as needed.
36
28.
Implementation Support Plan: An implementation support mission will be conducted at least
twice a year based on the risk assessment of the Project. The implementation support mission
objective is to ensure that strong financial management systems are maintained throughout the life of
the Project. The IFRs will be reviewed on a regular basis by the World Bank staff and any issues will
be examined during supervision missions. Financial audit reports will be reviewed and issues will be
identified and examined by the Project Financial Officer. Additionally, during supervision missions,
the Project’s financial management and disbursement arrangements (including a review of sample
payments and financial movements of the DA) will be reviewed to ensure compliance with the
Bank’s minimum requirements.
Procurement
29.
Implementing agency: CDR shall be in charge of implementing the project in close
collaboration with the beneficiary municipalities. The Public Accounting Law of 1963, supplemented
by several decrees, constitutes the legal foundation of Lebanon’s organizational and institutional
framework for procurement. The current system has remained entirely centralized, with the Central
Tender Bureau in the General Inspection, being in charge of public procurement. CDR constitutes an
exception to the Public Accounting Law of 1963. Since its establishment in 1977 as a legally and
financially autonomous state agency, CDR has operated under special procurement regulations. This
was formalized in 1980 through a decree covering CDR’s financial and accounting transactions
assigned to CDR by the Minister of Finance. CDR is permitted by the decree to establish its own
financial, accounting and procurement regulations. However the procurement methods adopted by
CDR are similar to the ones in the country’s general procurement framework. CDR has managed to
follow international financiers’ procurement Guidelines to handle the financed projects.
30.
Past experience of the implementing agency in internationally funded projects: CDR has
extensive experience in implementing donor financed projects (including the EU, IBRD and AFD).
CDR has proven capable of handling large and complex projects. The institution has adopted a strong
matrix organization by “projectizing” project management and delegating the responsibility of each
project to a team headed by an experienced manager, who deals with all aspects of project and
contract management. CDR also has a unit for monitoring and evaluation. The Project will be
implemented through the project unit currently managing the CHUD (IBRD and AFD financing).
The management of the unit is solid and is staffed with procurement and technical specialists as
needed by the Project design. Diligence is observed in record keeping and quality of evaluation. The
procurement processing and contract management has been rated satisfactory for the past two years.
The unit is familiar with the Bank’s bidding documents and when local bidding is conducted, the
standard document was reviewed and found acceptable to the Bank. CDR has proven to keep proper
records, maintain procurement plans, process satisfactorily procurement, publish notices adequately,
display awarded contracts on their website, address complaints diligently, and appoint external
auditors. Shortcomings are nevertheless observed in lengthy bureaucratic clearances and contract
management, resulting in delayed decision makings and eventual payments, delayed hand over of
completed works, and delayed contract amendments and extensions.
31.
Staffing: CDR has a centralized system of accountability covering responsibilities that
include procurement decision making. The agency and its experienced procurement staff, which have
been trained on international procurement, have the capacity to outsource and benefit from both
individual consultants and consulting firms to enhance its capacity whenever needed. Still, CDR is at
times challenged by the shortage of manpower in relation to the number of projects being
37
implemented. The complexity of dealing with several donors and their regulations also adds to the
strain on its staff, increasing the possibility of mistakes.
32.
Record Keeping: All the records of procurement activities are maintained by the CDR
procurement team. The filing rooms are at times used for meetings due to lack of space, a practice
that should be avoided to prevent any unauthorized access and possible loss of files.
33.
Procurement planning: The agency has firm experience with procurement planning,
especially within those units working on Bank-financed projects.
34.
Audit: The institution exercises internal audit and appoints an External Independent Auditor
that reviews all implemented projects. The current auditor has been appointed for three years and his
audit opinion was clean (“unqualified”). Audit reports are received on time and of satisfactory
quality.
35.
Applied taxes: The government observes the following taxation: (i) Stamp Duties of (a) three
per thousand (3‰) of the contract price for contract registration at Ministry of Finance, and (b) three
per thousand (3‰) on each payment; (ii) Value Added Taxes (VAT) of 10 percent applied on
consultants and contractors who are registered and eligible for VAT; and (iii) Income Taxes that are
a flat rate of 7.5 percent for non-registered consultants and variable for registered consultants
(Taxpayer Identification Number), depending on their job classification at Ministry of Finance.
Exemption of consultants from Income Taxes may be observed if they are registered in countries that
have entered with Lebanon into agreements prohibiting double taxation. Contracts financed by
international donor proceeds are exempted from VAT (Law No 379 dated December 14, 2001).
Overall Procurement Risk Assessment:
36.
The procurement risk rating is Substantial and mainly related to: (i) delay in procurement
processing and implementation; (ii) readiness of the subprojects of intervention by Grant Agreement
signing; (iii) coordination with other concerned stakeholders, ministries, etc.; and (iv) contract
management. It can be mitigated to Moderate upon: (i) assigning project coordinators with a
reasonable decision authority to interact with external partners, municipalities in particular; (ii)
concluding on a first tranche of projects to be immediately implemented and decide within two
months on a second tranche; and (iii) assigning field consultants to monitor contracts.
Proposed Procurement Arrangements:
37.
Project guidelines: The following shall be applied to the Project: (i) “Guidelines On
Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA
Credits and Grants” dated October 15, 2006 revised in January 2011; (ii) World Bank “Guidelines:
Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits and
Grants by World Bank Borrowers” dated January 2011; and (iii) World Bank “Guidelines:
Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits and
Grants by World Bank Borrowers” dated January 2011.
38.
Methods of Procurement and prior review threshold:
a.
Procurement methods for goods and non-consulting service: For the procurement of
Goods, Works and Non-Consulting Services, the following methods shall be used: (i) International
38
competitive bidding (ICB); (ii) National competitive bidding (NCB) for which shall be used either
ICB -or a translated version- or Standard Bidding Documents acceptable to the Bank as mentioned in
clauses 3.3 and 3.4 of the procurement guidelines; (iii) Shopping; (iv) Framework agreements; (v)
Force account, and (vi) Direct contract.
b.
Selection of Consultants: For the selection of consultants, the following methods shall
be used: (i) Quality-and-Cost-Based-Selection, (ii) Selection under a Fixed Budget; (iii) Least-CostSelection; (iv) Selection based on Consultants’ Qualifications; (v) Use of Non-GovernmentalOrganizations; (vi) Single Source Selection; (vii) Selection of Individual Consultants.
c.
The use of particular methods are justified by the following:
1.c.1.
Selection of NGOs: NGOs may be uniquely qualified to assist in the preparation,
management, and implementation of projects, essentially because of their knowledge of local issues,
community needs, and participatory approaches. NGOs may be included in the short list if they
express interest and provided that the Recipient and the Bank are satisfied with their qualifications.
For assignments that emphasize participation and considerable local knowledge, the short list may
entirely comprise NGOs (consultants’ guidelines clause 3.16).
1.c.2.
Force account: When works quantities cannot be defined in advance, works are too small
and scattered, urgent repairs to prevent further damages requires prompt attention, or works need to
be carried out in conflict-affected areas where private firms may not be interested, it is advisable to
use the Force Account, which are works such as construction and installation of equipment and nonconsulting services carried out by a government department of the Recipient’s country using its own
personnel and equipment. The use of Force Account requires that the Borrower sets maximum
aggregate amounts for its use, to which the Bank shall give its no objection, and applies the same
rigorous quality checks and inspection as for contracts awarded to third parties (procurement
guidelines clause 3.9).
1.c.3.
Framework agreement: A Framework Agreement is a long-term agreement with
suppliers, contractors and providers of non-consulting services which sets out terms and conditions
under which specific procurements (call-offs) can be made throughout the term of the agreement.
Framework Agreements are generally based on prices that are either pre-agreed, or determined at the
call-off stage through competition or a process allowing their revision without further competition.
They may be permitted as an alternative to the Shopping and NCB methods for: (a) goods that can be
procured off-the-shelf, or are of common use with standard specifications; (b) non-consulting
services that are of a simple and non-complex nature and may be required from time to time by the
same agency (or multiple agencies) of the Recipient; or (c) small value contracts for works under
emergency operations (procurement guidelines clause 3.6).
1.c.4.
Shopping: The Project may use shopping of goods of contracts up to US$100,000 and of
small works for up to US$200,000.
1.c.5. Single sourcing of consultants: CDR may explore using the method under the following
circumstances: (i) for tasks that represent a natural continuation of previous work; (ii) in response to
emergency situations; (iii) for very small contracts (below US$100,000), (consultants’ guidelines
clause 3.9).
39
1.c.6. Direct contract of goods, works and non-consulting services: Due to the emergency nature of
the Project, CDR may use this method, especially for the immediate activities to be carried out in the
first six months, and under the following circumstances: (i) an existing contract awarded in
accordance with procedures acceptable to the Bank may be extended for additional activities of a
similar nature; (ii) standardization of equipment or spare parts to be compatible with existing
equipment. For such purchases to be justified, the original equipment shall be suitable, the number of
new items shall generally be less than the existing number, the price shall be reasonable, and the
advantages of another make or source of equipment shall have been considered and rejected on
grounds acceptable to the Bank; and (iii) in response to emergency situations (procurement
guidelines clause 3.6).
39.
Based on the satisfactory assessment, and in view of the experience of CDR in implementing
Bank’s operations, the Project shall be subject to low risk prior review threshold, making the
Project mostly subject to post review.
40.
Proposed Project Staff: The unit at CHUD has customized the procurement resources and
financial management to support the implementation of the Project. Qualified staff with extensive
experience in the implementation of donor-financed projects are already employed by the institution.
41.
Project Operation Manual: Detailed Project procurement arrangements will be specified in
the Project OM.
42.
Procurement plan: An initial procurement plan has been developed by the Government. It
defines the prior review and procurement methods thresholds. It will be updated and reviewed by
the Bank at least twice a year or as deemed necessary. The initial procurement plan was agreed at
negotiations of the grant and is attached to the minutes of negotiations.
40
Procurement plan for Project implementation
Union
Baalbek
Tyre
Central Bekaa
Zahle
Component 1
Kalaat el Estikla
Jabal el sheikh
Al Bouhayra
Al Kayteh
Al Arkoub
Al Chafit
Component 2
Al Sahel
Type
Procurement Method
Description
Amount $
Award Date
120,000
180,000
50,000
210,000
90,000
50,000
195,000
105,000
50,000
180,000
120,000
50,000
160,000
40,000
40,000
150,000
50,000
40,000
160,000
90,000
45,000
100,000
150,000
45,000
100,000
100,000
40,000
200,000
50,000
45,000
50,000
250,000
50,000
Aug-14
Aug-14
Apr-15
Aug-14
Aug-14
Apr-15
Aug-14
Aug-14
Apr-15
Aug-14
Aug-14
Apr-15
Aug-14
Aug-14
Apr-15
Aug-14
Aug-14
Apr-15
Aug-14
Aug-14
Apr-15
Aug-14
Aug-14
Apr-15
Aug-14
Aug-14
Apr-15
Aug-14
Aug-14
Apr-15
Aug-14
Aug-14
Apr-15
Estimation of
Duration /
Months
4
7
20
4
7
20
4
7
20
4
7
20
4
7
20
4
7
20
4
7
20
4
7
20
4
7
20
4
7
20
4
7
20
Works
Goods
Services
Works
Goods
Services
Works
Goods
Services
Works
Goods
Services
Works
Goods
Services
Works
Goods
Services
Works
Goods
Services
Works
Goods
Services
Works
Goods
Services
Works
Goods
Services
Works
Goods
Services
Single source
Shopping
Consulting services
Single source
Shopping
Consulting services
Single source
Shopping
Consulting services
Single source
Shopping
Consulting services
Single source
Shopping
Consulting services
Single source
Shopping
Consulting services
Single source
Shopping
Consulting services
Single source
Shopping
Consulting services
Single source
Shopping
Consulting services
Single source
Shopping
Consulting services
Single source
Shopping
Consulting services
Civil Infrastructure Works
Equipments
Social Activities
Civil Infrastructure Works
Equipments
Social Activities
Civil Infrastructure Works
Equipments
Social Activities
Civil Infrastructure Works
Equipments
Social Activities
Civil Infrastructure Works
Equipments
Social Activities
Civil Infrastructure Works
Equipments
Social Activities
Civil Infrastructure Works
Equipments
Social Activities
Civil Infrastructure Works
Equipments
Social Activities
Civil Infrastructure Works
Equipments
Social Activities
Civil Infrastructure Works
Equipments
Social Activities
Civil Infrastructure Works
Equipments
Social Activities
Works
NCB
Medium Size Civil
Infrastructure Works
2,500,000
Jun-15
24
Works
NCB
Medium Size Civil
Infrastructure Works
2,500,000
Jun-15
24
43.
The frequency of supervision mission and post procurement review is foreseen twice and
once a year respectively. In post procurement review, a sample of t e n percent of contracts
eligible for post review shall be covered.
Environmental Safeguards
44.
The Project is classified as environmental category “B”, in accordance with
Operational Policy OP 4.01. Since exact subprojects are not determined at the onset of the Project
and will be decided during implementation based on demand and consultations with the concerned
municipalities and communities, the instrument of OP 4.01 is determined as ESMF. The ESMF
identifies the policy triggers for the Project, the screening criteria of sub-projects, the environmental
and social impacts for the likely subprojects and the mitigation measures to mitigate the identified
risks, an assessment of the institutional capacity of the implementing agency and measures for
capacity-filling gaps, and an estimate of the budget needed for the implementation of the ESMF and
related instruments. The ESMF has been prepared and consulted with the targeted municipalities. It
has furthermore been reviewed and cleared by the Bank, and disclosed both in-country (CDR web
site and at premises of concerned municipalities) and on the Bank Infoshop on April 14, 2014.
45.
According to initial assessments, refugee-impacted municipalities in Lebanon are likely to
undertake/request: (i) procurement of power generators for wastewater pumping stations, street
lights, sewage tankers and sewage networks flushing equipment, water tankers and water filters for
41
schools, street cleaning equipment, solid waste compactors, matching garbage bins, and earth moving
equipment; (ii) rehabilitation and construction civil works, including roads and sidewalks
rehabilitation, construction of additional classrooms in schools, playgrounds and public gardens, and
community centers; (iii) infrastructure projects such as small scale wastewater treatment plants and
solid waste sorting, recycling, and composting facilities (design capacity estimated around 10,000
cubic meters per day for the wastewater treatment plan and 100 tons per day for the solid waste
facility); and (iv) communal activities that promote social interaction and collaboration, such as
sports teams, events, information or outreach campaigns etc.
46.
No subprojects of category “A” will be eligible for funding. For the projects described in
item (iii) above, the Project will prepare Environmental and Social Impact Assessments (ESIA) that
will define and quantify all risks, including site sensitivities which might entail a higher
environmental category. Eligibility will be contingent on alternatives (including site selection) that
exclude any of the environmental, social, or cultural sensitivities. For procurement of goods under
item (i) above, in lieu of a subproject ESMF, guidelines for use and handling will be developed and
applied within the provisions of the bidding documents and technical specifications.
47.
No impacts on physical and cultural resources or natural habitats are anticipated under the
Project. A chance find procedure is included in the ESMF in case chance finds are encountered
during project implementation.
48.
For all subprojects which may include civil works, i.e., items (ii) and (iii) above, a social and
environmental safeguards screening tool will be applied, along with the specific subproject level
instruments that will be necessary to cover both social and environmental aspects, including
subproject ESIAs and ESMPs if determined necessary. Additional measures will support the
implementation, monitoring, and compliance to the ESMF, including; (a) annual fiduciary audits/
post-review of a subset of subprojects with respect to design and implementation of ESMPs; and (b)
Project supervision missions by the Bank will include social and environmental implementation
expertise to support client during the entire project cycle.
49.
The Project is expected to produce substantial positive environmental impacts through
improved community service delivery. In terms of solid waste management, improved capacity of the
targeted municipalities is expected for collection, recycling, composting, and thus reduction in
landfill disposal. The interventions are expected to improve water supply to schools, improved
quality and continuity of wastewater networks collection and treatment. The interventions for road
rehabilitation and street lighting are expected to improve access, road safety and reduce dust. The
community centers, playgrounds, and gardens will improve the overall environmental and social
conditions in targeted communities. The negative impacts anticipated for the Project activities are
minor and of temporary nature during the construction phase, including dust, noise, waste generation,
disruption to traffic and movement, damages to existing utilities, and easily mitigated by the ESMPs
that will be included in the bidding documents. Environmental Health and Safety procedures during
construction and operational phases will be also prepared for subprojects as necessary.
50.
CDR is familiar with the provisions of the Bank’ safeguards policies relevant to this
operation, including the implementation and monitoring of the ESMF and related instruments due to
their experience with the CHUD project. Any capacity gap that becomes evident during
implementation will be addressed via provision of appropriate skills and/or further training.
Safeguards management of this operation will benefit from the safeguards modalities established
under CHUD, herein the existing PMU, the provision of environmental consultants, and will utilize
42
and build on the existing safeguards documentation including baseline reports, ESMF, subproject
screening checklist, a safeguards monitoring and evaluation framework, municipality toolkits, and
social and environmental audits. The costs for the implementation of the ESMF, ESMPs, and other
instruments (e.g., additional subproject ESIAs) are estimated and included in the Project budget.
Social Safeguards
51.
All activities financed by the Project are relatively small scale. Land requirements are
therefore expected to be modest and subproject investments will be carried out primarily on
municipally owned lands, or other government owned lands. However, the project implementation
may impact squatters or encroachers on government owned lands or result in the involuntary taking
of land. Since the location of subprojects cannot be determined prior to project appraisal, a RPF has
been prepared to mitigate the potential resettlement impacts.
52. Key Principles: The principles outlined in the World Bank’s OP/BP 4.12 have been adopted in
preparing the Project RPF, including:
(a)
Acquisition of land and other assets, and resettlement of people will be minimized to the
extent possible. Where land acquisition is unavoidable, the Project will be designed to minimize
adverse impact on the project-affected persons (PAP), especially vulnerable groups;
(b)
All PAPs will be compensated, relocated and rehabilitated, if required, so as to improve their
standard of living, income earning capacity and production capacity, or at least to restore them to
pre-project levels;
(c)
All PAPs residing on, or cultivating land, or having rights over resources within the
subprojects areas are entitled to compensation for their losses and/or income rehabilitation. Lack of
legal right to the assets lost will not bar the PAP from entitlement to such compensation,
rehabilitation and relocation measures;
(d)
The rehabilitation measures to be provided are: (i) compensation at full replacement cost for
houses and other structures; (ii) compensation for land acquisition; (iii) dislocation allowance and
transition subsides; (iv) full compensation for crops, trees and other similar agricultural products at
market value; and (v) other assets, and appropriate rehabilitation measures to compensate for loss of
livelihood;
(e)
Land-for-land is the preferred option. Land-for-land may be substituted by cash provided
that: (i) land is not available in the proximity of the subproject area; (ii) PAP willingly accept cash
compensation for land and all assets on it; and receive full replacement value without any deductions
for depreciation; and (iii) cash compensation is accompanied by appropriate rehabilitation measures
which together with project benefits results in restoration of incomes to at least pre-subprojects
levels;
(f)
Resettlement plans will be implemented following consultations with the PAPs, and will
have the endorsement of the PAPs;
(g)
Any acquisition of, or restriction on access to resources owned or managed by PAP as
common property will be mitigated by arrangements ensuring access of those PAP to equivalent
resources on a continuing basis.
53.
Valuation Method of Compensation: The valuation of losses in physical assets will be carried
out by a compensation committee. The value of compensation will be determined based on the
market value of the assets, if known, and estimating the replacement cost. Replacement cost is
simply calculated as the cost of replacing the lost assets plus any transaction costs associated with
brining the asset to pre-displacement value. The valuation of crops will be mainly relied upon the
price lists developed by the Agriculture directorate and revisited annually.
43
Procedures for preparing and approving RAP
54.
Project Screening. Once the subprojects are identified by unions or municipalities, the PMU
will obtain all permits/approvals related to the Project. Thereafter, they will cooperate with unions or
municipalities to carry out social screening to determine whether or not the subprojects will result in
any resettlement impact. The PMU will then decide on the need for the preparation of a Resettlement
Action Plan (RAP) or an abbreviated RAP.
55.
Socioeconomic and Inventory Survey. Following the identification of the subprojects that
may involve involuntary resettlement, the PMU in cooperation with unions and municipalities will
carry out a socio-economic study and census survey, in which baseline data within the subproject’s
target areas is collected. This information shall include the PAPs and related household members or
dependents, total land holdings, and affected assets. This information will be put in writing and shall
be used in determining the appropriate compensation and assistance for each affected
individual/household.
56.
RAP preparation, review and approval. Once the census survey is completed, the PMU will
work with relevant unions and municipalities to prepare the RAP. The RAP, including the proposed
mitigation measures within the plan, will be reviewed and approved by CDR’s Board and
subsequently sent to the World Bank for final review and approval.
57.
RAP disclosure and implementation. Once the RAP is approved by the Bank, it will be
translated into Arabic and disclosed locally as well as in InfoShop at the Bank. The PMU and unions
and municipalities are responsible for the implementation of the RAP.
Grievance Redress Mechanisms
58.
A multi-level grievance redress mechanism has been established for the proposed Project.
The procedures for handling grievances are as follows:

The affected person should file his/her grievance in writing to the relevant municipality. The
municipality should respond within 14 days.

If the aggrieved person does not receive a response or is not satisfied with the outcome from
the municipality within the agreed time, s/he lodges her or his grievance to CDR’s Expropriation
Committee. The Committee will attempt to resolve the problem (through dialogue and negotiation)
within 14 days of the complaint being lodged.

If the grievances cannot be solved by the Expropriation Committee, the person can submit
the case to the Appeals Committee.
Public Consultations
59.
Consultations have been carried out with municipalities during preparation of the RPF.
During project implementation, when resettlement impacts are involved and a RAP needs to be
prepared, consultations with affected persons will be carried out as part of the RAP preparation
process.
44
Vulnerable Groups
60.
The Project will pay specific attention to the needs of the following vulnerable groups: a)
Persons below the poverty line and the landless; b) PAPs who may not be protected through national
land compensation legislation; and c) Elderly, women and children, indigenous peoples, etc..
Vulnerable people will be identified at socio-economic survey stage and assistance program will be
developed and included in the RAP.
Resettlement Monitoring and Evaluation Arrangement
61.
Internal monitoring the implementation of the resettlement activities will be carried out by
the PMU through quarterly monitoring and results and findings will be included in the quarterly
project progress report. The report will mainly cover the compensation standards, resettlement
progress, delivery of resettlement compensation, provision of development and transitional assistance
to PAPs (especially vulnerable groups), implementation schedule, fund disbursements, land or
structure allocation, and grievances redress. External monitoring might be required to ensure that the
overall objective of the resettlement plan is achieved in an equitable and transparent manner and
ensure the effectiveness of the monitoring. By the time of project closure, an evaluation will be
carried out by CDR to ensure the objectives set forth in the RAP are met.
Budget and Sources of Funding
62.
The actual resettlement cost and budget will be included in the RAP which will be prepared
during project implementation. The budget shall consider all of the anticipated impacts under the
Project and calculate the cost according to actual replacement costs. CDR and the relevant unions
and municipalities are fully responsible for funding any compensation for land acquisition.
45
Annex 4: Operational Risk Assessment Framework (ORAF)
REPUBLIC OF LEBANON
Municipal Services Emergency Project (P149724)
Risks
.
1. Project Stakeholder Risks
1.1 Stakeholder Risk
Rating
Substantial
Risk Description: The status of the
Government may hinder its ability to
make timely approvals related to the
LSCTF and the Project.
Risk Management: Grant-financed projects only require Council of Ministers approval, which is expected
to be expedited given the Cabinet's endorsement and ownership of the Roadmap.
The Bank will continue to engage will all stakeholders to ensure a broad and sustained ownership of the
Project approach and benefits.
The fluidity of the political situation
Resp: Govt
Status: Ongoi Stage: Prep/Impl Recurrent Yes
Due
Frequenc Contin
may manifest itself in rivalries and
ng
:
Date:
y:
uous
friction between the involved Lebanese
Risk Management: The Project will support outreach activities in the targeted unions ahead of
institutions leading to delays or
suboptimal solutions in implementation. consultations, as well as the dissemination of their results hereby making it difficult for heads of unions to
avoid or ignore the voice of the communities. The Project will track the proceedings on a continuous basis to
Mayors and heads of union may try to monitor the quantity and quality of the consultations.
circumvent the participatory processes Resp: Bank
Status: Not
Stage: Impl
Recurrent Yes
Due
Frequenc Contin
to cater to their own interests.
due
:
Date:
y:
uous
2. Implementing Agency (IA) Risks (including Fiduciary Risks)
46
2.1 Capacity
Rating
Risk Description: As main
beneficiaries, the municipalities may
not have the capacity to take charge of
the demand-driven decision making
process delaying the implementation of
subprojects.
Risk Management: Many of the municipalities already have community consultation platforms that are
called to advise on municipal priorities and projects, and the modalities of such procedures are therefore
well known. CDR will support the unions through dedicated social team that will provide assistance in the
preparation and outreach, facilitation, and reporting on the consultations as needed.
CDR may not have flexible enough
mechanisms to ensure timely delivery
of the priority subprojects identified by
unions and communities.
Moderate
CDR will make use of its fast-track procedures to ensure that the emergency nature of the Project is
respected. The Project will monitor and report on the Project’s ability to deliver the subproject identified by
the unions under Subcomponent 1A. To mitigate the risks associated with procurement, the Project will
assign project coordinators with adequate decision authority and filed consultants to monitor contracts.
Resp: Govt
Status: Not Stage:
due
Impl.
Recurre Yes
nt:
Due
Date:
Frequenc Contin
y:
uous
2.2 Governance
Rating
Moderate
Risk Description: The limited targeting
of only eleven unions may lead to
accusations of favoritism and unfair
distribution of funds.
Risk Management: The choice of participating unions and municipalities has been prepared based on a list
created by key UN agencies in collaboration with the Government, with a view to ensure geographic and
demographic diversity. The Project will collaborate with other bilateral and multilateral partners to prevent
overlap of activities and in total increase coverage of the country.
Resp: Govt/B Status: Not
ank
due
Stage: Impl.
Recurrent Yes
:
Due
Date:
Frequenc Yearly
y:
3. Project Risks
3.1 Design
Rating
Moderate
Risk Description:
Risk Management: Clear criteria will be established on the basis of readiness of subprojects and the
Municipalities may choose projects that absence of already funded operations. A consultative process will also be established at the local level in
are not based on public participation
order to respond to the most urgent needs and demands of the beneficiary communities.
and/or demand.
Resources have been set aside for communications to ensure that citizens are aware of the participatory
Competition over limited Project
nature of the Project and the roles and responsibilities of the unions and municipalities. Further, CDR will
resources may lead to increased tension support and track the consultation events to ensure the quality and quantity of consultations. Finally, the
47
within and between communities
mid-term review will assess the participatory aspects of subproject prioritization, planning, implementation
and oversight.
The limited funding available may lead
to resources being spread too thinly to A team of social specialists in CDR will undertake preliminary social and conflict assessments in advance of
have an impact.
the first round of consultations to gauge both the potential for negative social impacts due to project design
as well as understand how component 1B can be best utilized as a tension reduction tool.
The Project interventions financed under component 1 will be low-cost, but targeted and with a high level of
visibility. It is thus expected that relatively small amounts will have a concrete impact on stressed
communities.
Resp: Govt/B Status: Not
ank
due
3.2 Social and Environmental
Rating
Stage: Impl.
Recurrent Yes
:
Due
Date:
Frequenc Contin
y:
uous
Moderate
Risk Description: The investments to be Risk Management: A dedicated Environmental and Social Safeguards Specialist will be engaged and will
implemented, particularly in solid
be responsible for safeguards oversight. Annual technical audits will cover safeguards compliance.
waste, could bear important
Resp: Govt
Status: Not
Stage: Impl.
Recurrent Yes
Due
Frequenc Contin
environmental impacts.
due
:
Date:
y:
uous
The communities living in the vicinity
of infrastructure works could also be
affected.
3.3 Program and Donor
Rating
Moderate
Risk Description: New donors may
Risk Management: At the time of appraisal, the Project is being financed by the LSCTF for US$10
wish to change the design of the Project million. Additional financing is likely to be channeled through the LSCTF, which is co-chaired by the
according to their priorities.
World Bank and the Government. The flexible design of the Project will give some leeway for donors to set
their mark on the Project; however, any additional financing would have to remain within the framework of
The Project may fail to attract
the described project modalities.
additional funding from donors, thereby
exacerbating the design risk of
The Project will prioritize interventions that have immediate impact on the ground to showcase its ability to
spreading benefits too thinly.
deliver quick results, thereby increasing its value to potential donors. The Bank and the Government will
continue to make efforts to raise further funds to cover more of the critical needs at the municipal level.
Resp: Bank
Status: Ongoi Stage: Prep/Impl Recurrent Yes
48
Due
Frequenc Yearly
and
LSCTF
3.4 Delivery Monitoring and
Sustainability
Rating
ng
:
Date:
y:
Substantial
Risk Description: The distribution of
Risk Management: The Project implementation team will be decentralized, with engineers and social
investments across different sectors and specialists based at the local level, providing direct support to the mayors and the unions of municipalities.
locations may render progress
A dedicated staff will be assigned to conduct monitoring and evaluation.
monitoring difficult.
The relevant line ministries will be consulted in the process of choosing infrastructure subprojects in order
Due to municipal fiscal constraints,
to ensure that their operation and maintenance will be included in sector budgets. The Project will also
investments in infrastructure may not be conduct specific training and provide assistance on the setting adequate operation and maintenance
maintained.
procedures at the municipal level.
Resp: Govt
Status: Not
due
Stage: Impl
4. Overall Risk: Substantial
49
Recurrent Yes
:
Due
Date:
Frequenc Contin
y:
uous
Annex 5: Implementation Support Plan
REPUBLIC OF LEBANON
Municipal Services Emergency Project (P149724)
Strategy and Approach for Implementation Support
The World Bank’s implementation support to the Project will comprise of technical, fiduciary,
safeguards and evaluation support as follows:
(i) Technical assistance: The Bank’s policy guidance and advice has been an integral part of
preparation of the Project. There are two areas that merit extra focus during implementation:
a. Participation of beneficiary communities in the selection of investments and activities
to be implemented through the Project: given the emergency nature of the Project, it
will be difficult to ensure full participation of the beneficiary communities,
particularly at Project inception. The Bank team is confident, however, that the
participatory processes applied through the implementation of the Cultural Heritage
and Urban Development Project will be most relevant to the MSEP. The Bank will
also assign social scientists to assist in the process.
b. Using municipal level interventions to reduce tension. This is a relatively new area
for both Bank and the Government. The Bank team will seek the services of experts
from other units of the Bank working on conflict and social development as well as
other external experts during implementation to support and advise the relevant
stakeholders in Lebanon.
(ii) Fiduciary and safeguards management support: The Bank team includes fiduciary
management staff and safeguards specialists to provide routine supervision of FM and
procurement activities as well as safeguards issues. Since CDR is wholly familiar with
relevant Bank rules and guidelines on fiduciary aspects and safeguards, major issues are not
anticipated. In addition, Bank’s fiduciary staff will provide guidance on FM guidelines,
preparation of IFRs and withdrawal applications, compliance with the Bank guidelines and
other issues as they arise during the implementation.
(iii) Monitoring and verification support. The mainstay of monitoring will be semi-annual
progress reports as well as annual third party technical and fiduciary audits. The Bank team
will provide support to organize these audits, including inputs for the preparation of terms of
reference and support to CDR to monitor the work of the audit firms. Finally, impact
evaluations will be carried out by the Bank team independently using external resources.
Implementation Support Plan
Time
Year 1-2
Focus
o Technical support for community
participatory planning.
o Fiduciary management support
50
outreach
Skills Needed
o FM, procurement and
safeguards specialists
and
o Participation
specialists
o Conflict and violence
experts
Year 1-2
Years 2-3
Year 1-3
o Municipal engineers
o Training for municipalities on Project OM and other
o FM, procurement and
relevant Bank rules and guidelines
safeguards specialists
o FM, procurement and
o Technical support for annual assurance audits.
safeguards specialists
o Monitoring and
o Monitoring, verification and evaluation support
Evaluation specialists
51