Document of The World Bank FOR OFFICIAL USE ONLY Report No. 36778-LR PROJECT APPRAISAL DOCUMENT FOR THE TRUST FUND FOR LIBERIA (TFLIB) (TF057072) IN THE AMOUNT OF 8.5 MILLION FOR A LIBERIA INFRASTRUCTURE REHABILITATION PROJECT (LIRP) November 7,2006 Afnca Transport Country Department 10 Afnca Region This document has a restncted distribution and may be used by recipients only in the performance o f their official duties. Its contents mav not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Afnca Transport Country Department 10 Afnca Region
This document has a restncted distribution and may be used by recipients only in the performance o f their official duties. I t s contents mav not otherwise be disclosed without World Bank authorization.
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AfDB BWI CAA CD CPA CRN DDRR Dwt EC EGSC EIP E M P GDP GEMAP GOL HIPC HSES-MP IBRD ICAO IDA IDPS I F I S IMF ISPS L ICUS LIRP LNP LPRC LPS L R D C M o F MPW NA NGO NPA NTGL OM PAD
CURRENCY EQUIVALENTS (Exchange Rate Effective September 29,2006)
CurrencyUnit = LRD 59.5000LRD = US$1
0.6769SDR = US$1 US$1.4773 = SDRl
FISCAL YEAR July 1 - June 30
ABBREVIATIONS AND ACRONYMS
Afr ica Development Bank Bretton Woods Institutions Civil Aviabon Authonty Chart Datum Comprehensive Peace Agreement Country Re-engagement Note Demobilization, Disarmament, Rehabilitation and Reintegration Deadweight tonnage (vessel carrying capacity) European Commission Economic Governance Steering Committee Emergency Infrastructure Project (pre-arrears grant) Environmental Mit igat ion Plan Gross Domestic Product Governance and Economic Management Assistance Program Government o f L ibena Heavi ly Indebted Poor Countnes Health, Safety, Environmental and Social Management Plans International Bank for Reconstruction and Development International C iv i l Aviation Organization International Development Association Internally Displaced Persons International Financial Institutions International Monetary Fund International Ship and Port Facil ity Secmty Code L o w Income Country under Stress Libena Infrastructure Rehabilitation Project L ibena National Police Libena Petroleum Refinery Corporation Libena Port Security Libena Reconstruction and Development Committee Ministry o f Finance Ministry o f Public Works Needs Assessment Non-Governmental Organization National Port Authority National Transitional Government o f L ibena Operation Manual Project Appraisal Document
P E W PMP PRSP R&FF RFTF RIA RIAA R I M C O ROM RPF R S A S I U SMP SOE SOP TA TFLIB UN UNDP UNMIL UNOPS us U S A I D
Preliminary Environmental Assessment Port Master Plan Poverty Reduction Strategy Policy Rescue and Fire-Fighting Results Focused Transition Framework Roberts International Airport Roberts International Airport Agency RFTF Implementation Management Committee Rough-Order-Magnitude Resettlement Pol icy Framework Rapid Social Assessment Special Implementation Unit Staff Monitored Program State-Owned Enterprise Standard Operating Procedures Technical Assistance Trust Fund for Liberia Uni ted Nations United Nations Development Programme United Nations Mission in Libena United Nations Off ice for Project Semces United States United States Agency for International Development
FOR OFFICIAL USE ONLY
V i c e President: GobindT Nankani Country Director: M a t s Kar lsson
Sector Manager: C. San j iv i Rajaslngham Task T e a m Leader: Gylfi Palsson
This document has a restricted distribution and may be used by recipients only in the performance o f their off icial duties. I t s contents may not be otherwise disclosed without Wor ld Bank authorization.
TABLE OF CONTENTS
A . A . 1 A.2 A . 3 B . B . 1 B.2 B.3 B.4 B.5 C . c . 1 c.2 (2.3 c .4 c.5 (2.6 D . D 1 D.2 D.3 D 4 D.5 D.6 D 7
STRATEGIC CONTEXT AND RATIONALE .............................................................. 2 Country and Sector Issues ................................................................................................ 2 Rationale for Bank’s Involvement ................................................................................... 7 Higher Level Objectives to which the Project Contributes ............................................. 8 PROJECT DESCRIPTION .............................................................................................. 8 Grant Instrument .............................................................................................................. 8 Project Development objective and Key Indicators ........................................................ 8 Project Components ......................................................................................................... 8 Lessons Learned and Reflected in the Project Design ................................................... 10 Alternatives Considered and Reasons for Rejection ...................................................... 11 IMPLEMENTATION .................................................................................................... 11 Partnership Arrangements .............................................................................................. 11 Institutional and Implementation Arrangements ........................................................... 11 Monitonng and Evaluation o f Outcomes/Results .......................................................... 12 Sustainability., ................................................................................................................ 12
Grant Conditions and Covenants ................................................................................... 13 PipPRAISAL SUMMARY ............................................................................................ 14 Economic and Financial Analyses ................................................................................. 14 Technical ........................................................................................................................ 16 Fiduciary ........................................................................................................................ 17 Social .............................................................................................................................. 18 Environmental ................................................................................................................ 18 Safeguard Policies .......................................................................................................... 19
. . Cntical Risks and Possible Controversial Aspects ........................................................ 13
. Policy Exceptions and Readiness., ................................................................................. 19
Annex 1 Country and Sector Background ........................................................................... 21 Annex 2: Results Framework and Monitonng ...................................................................... 29 Annex 3 Detailed Project Descnption ................................................................................. 32 Annex 4: Project Costs .......................................................................................................... 36 Contingencies irrelevant as civi l works cost estimates are based on Rough Order Magnitude ............................................................................................................................................... 36 Annex 5 . Implementation Arrangements .............................................................................. 37 Annex 6: Financial Management and Disbursement Arrangements .................................... 39 Annex 7 . Procurement Arrangements ................................................................................... 46
Annex 9: Preparation and Supervision ................................................................................. 59 Annex 10: Documents in the Project File ............................................................................. 60 Annex 1 1 . Country at a Glance.. ........................................................................................... 61
Date: November 7,2006 Country Director: Mats Karlsson Sector ManagerDirector: C. Sanjivi Raj asingham sector (10%)
Team Leader: Gylfi Palsson Sectors: Ports, waterways and shipping (75%);Aviation (1 5%);General transportation
Themes: Infiastructure services for pnvate sector development (P);Administrative and civil service reform (S) Environmental screening category. Partial Assessment
Project ID. P101456
Lending Instrument: Emergency Recovery Loan
Project Financing Data 1 [ ] Loan [ 3 Credit [ ] Grant [ ] Guarantee [XI Other: Special Funding
For Loans/Credits/Others: Total Bank financing (US$m.): 0.00
Borrower: I Government o f Libena Libena
Responsible Agency:
Does the project depart from the CAS in content or other significant respects? Re$ PAD A.3 Does the project require any exceptions from Bank policies?
[ No
Re$ PAD D. 7 Have these been approved by Bank management?
[ ]Yes [XINO [ ]Yes [XINO
I s approval for any pol icy exception sought from the Board? Does the project include any cntical n s k s rated “substantial” or “high”? Re$ PAD C.5 Does the project meet the Regional cntena for readiness for implementation? Re$ PAD D. 7 Project development objective Re$ PAD B.2, Technical Annex 3 To provide Government with emergency support to restore pnon ty infrastructure in the port o f Monrovia and at Roberts International Airport and assist the Government in developing medium term strategic framework for efficient and productive port and aviation sectors.
[ ]Yes [XINO
[XIYes [ ] N o
[ ]Yes [XINO
Project descnption [one-sentence summary of each componentJ Re$ PAD B.3.a, Technical Annex 4 Component A: Infrastructure Rehabilitation: (Total US$ 7.70 million).
The Technical Assessment Report o f Emergency and Longer Term Actions required in the Port o f Monrovia l i s ts some 25 different projects identified through detailed discussions and workshops with the National Port Authonty (NPA) and stakeholders.
Provision o f selective and ad-hoc technical assistance to Government, including support to develop a strategic framework for the sub-sectors, as well as targeted training in NPA and RIA to complement normalization o f operations.
Overall implementation responsibility wil l be by the Ministry o f Public Works through a Special Implementation Unit (SIU) being set up and which will provide coordination, procurement, M&E and support to safeguard management. Financial Management wil l be under the auspices o f the Ministry o f Finance, through a Project Financial Management Unit (PFMU), also in the process o f being set up.
Which safeguard policies are tnggered, if any? Re$ PAD D. 6, Technical Annex 10 This project i s in Category B for environmental assessment.
Significant, non-standard conditions, if any, for: Re$ PAD C. 7 Board presentation: This project wil l not be going to the Board but wil l be approved by the Afnca Vice President’s office.
Loadcredit effectiveness: Conditions o f effectiveness are:
i) The S I U has been established under terms o f reference acceptable to the Bank and the Project Coordinator and the procurement specialist appointed, under terms o f reference and with qualifications and expenence acceptable to the Bank, from either existing staff o f the Recipient or recruited under the Bank's Procurement Guidelines; and,
ii) The PFMU has been established under terms o f reference acceptable to the Bank and an accountant appointed, under terms o f reference and with qualifications and expenence that are acceptable to the Bank, from either existing staff o f the Recipient or recruited under the Bank's Procurement Guidelines.
Covenants applicable to project implementation: a) The Government with support from the Bank will tender through a competitive and transparent process a Container Terminal Contract in the port o f Monrovia no later than by end o f December 2006.
b) The Government wil l ensure that Roberts International Airport cames 3rd party liability/aircraft insurance. Procurement for the benefit o f RIAA i s contingent o n this insurance being in place.
A. STRATEGIC CONTEXT AND RATIONALE
A.1 Country and Sector Issues
1. Libena had been a middle-income country before the c i v i l war began in late 1989 Fifteen years o f brutal war devastated the country’s economy, i t s physical infrastructure, and i t s human assets. In August 2003, the warring parties ended hostilities with the signing o f the Comprehensive Peace Agreement (CPA) in Accra, Ghana, and a National Transitional Government (NTGL) was established to administer a two-year in tenm period leading to national elections in October 2005. The United Nations Mission in Libena (UNMIL) was created and was given the mandate to support the implementation o f the peace process.
2. In 2003, the United Nations Development Program (UNDP) and the Wor ld Bank undertook a needs assessment for L ibena which led to the development o f a Results Focused Transitional Framework (RFTF). The activlties in the RFTF were organized by cluster, and the Bank took the lead in the Infrastructure and Economic Management clusters. With a lead role in Infrastructure, the Bank agreed to undertake assessments o f the emergency needs o n transport, power, water, and telecommunications.
3. In March 2004, the Bank’s Executive Directors discussed a re-engagement strategy for Libena.’ This strategy outlines a plan for Bank re-engagement within the RFTF in three pnon ty areas: economic management, infrastructure rehabilitation, and community-based development. The Bank’s strategy envisaged financing f rom both the L o w Income Countries under Stress (LICUS) Trust Fund and a grant f rom the Bank’s surplus. Subsequently, the Board o f Governors o f the Bank approved the transfer f rom surplus to a Trust Fund for Libena (TFLIB) in the amount o f US$25 mi l l ion as a grant to be administered by IDA. Since then, TFLIB and L ICUS funds have financed technical assistance for institution building and small scale investments in the three pr ior i ty areas. The Bank will prepare an f i t e n m Strategy Note (ISN), covering the period FY08- 09 which will be based on the Government’s forthcoming development strategy, the Inter im Poverty Reduction Strategy Paper (I-PRSP).
4. Libena today i s one o f A h c a ’ s poorest nations, wth a Gross Domestic Product per capita o f approximately US$15 1 and arrears to the International Financial Institutions (IFIS) amounting to US$1.4 billion, o f which US$456 mi l l ion i s owed to the Bank. Fifteen years o f war and mismanagement have undermined capacity and depleted Libena’s pool o f skilled human resources. In order to restore basic financial management and to address long-standing governance problems, the Government has embraced the Governance and Economic Management Assistance Program (GEMAP) which involves robust international technical assistance to key ministnes, the Central Bank and revenue generating agencies.
5. Significant steps have been taken by the Government to improve financial management, including a review o f concessions, strengthening o f tax and customs administration and improved functioning o f the cash management committee. These steps have been recognized by the IMF as demonstration o f progress under the Staff Monitored Program (STP), which was initiated in April 2006, and i s expected to lay the ground for normalization o f relations with the multi-lateral development banks. Nevertheless governance and weak capacity remain a challenge in Liberia and this project addresses this through the use and strengthening o f a Special Implementation Unit (SIU) in the Ministry o f Public Works as wel l as a Project Financial Management Unit (PFMU) wthin the Ministry o f Finance.
IDA/R2004-0046, Liberia: Country Re-Engagement Note and Additional Activities, March 3, 2004. I
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6. The proposed project i s in line with the Bank’s strategy as articulated in the Country Re- engagement Note (CRN) which outlined a leadership role for the Bank in the infrastructure sector. The project i s also in l ine with the new administration’s expressed request for Bank support in the emergency rehabilitation o f cntical infrastructure nodes. Finally, the project builds o n the work financed by the TFLIB - the preparation o f technical feasibility studies which prioritized emergency works in five infrastructure sub-sectors - and the existence o f these studies has greatly facilitated the preparation o f this operation.
7 The proposed Grant, which i s one o f a number o f grants funded out o f the TFLIB, responds to the request o f the GOL for emergency funds and aims to reinstate cntical infrastructure that was destroyed in the war. This PAD builds on the work carried out under the Infrastructure Rehabilitation TA Project financed by TFLIB, which camed out a comprehensive infrastructure needs assessment identifying crit ical emergency works. Of these urgent needs, the Bank agreed with Government to focus o n a short-term program o f road rehabilitation, labor- intensive public works, and cntical repairs o f the port and airport infrastructure, using the various instruments at i t s disposal. A US$30 mi l l i on IDA pre-arrears clearance grant (Emergency Infrastructure Project) i s supporting critical road rehabilitation activities, whi le a $16.5 m i l l i on additional financing component i s supporting labor-intensive road repairs and small labor- intensive works in Monrowa in order to generate employment and wsible results for the population’ The proposed activities under this PAD focus o n the most critical emergency works in the port and airport sub-sectors in the amount o f US$8.5 mi l l ion. It i s expected that other partners will come together to prowde financing for the remaining pr ionty infrastructure needs. T o this end, an international Partners’ Forum will take place in February 2007 to discuss Government’s development strategy and to explore possibilities for new donor flows in support o f Government’ s pnonties.
Sector Issues
8. The transport sector in Liberia pr ior t o the c iv i l war included road and railway networks, c i v i l aviation, and several ports. Today, the railway network does not exist, c i v i l awation i s l imi ted to Monrovia with only UN flights operating upcountry, and the Port o f Monrowa i s the only operational port in the country
9 During the years o f conflict, the sector was able to undertake intermittent maintenance activities but n o penodic maintenance. Partial rehabilitation and new construction were sporadic and l imi ted in scope. As a result o f the chronic undennvestment and lack o f maintenance, the rehabilitation requirements o f the sector today are enormous.
10. The Government recognizes the urgency o f the situation and has pleaded for donor assistance to the sector. The TFLB-f inanced infrastructure feasibility studies provided technical assessments o f the Port o f Monrovia, the Roberts International Airport in Monrovia as we l l as assessment o f two o f the main road comdors in the country The studies identified emergency works and developed bidding documents that have been shared with donors. Given the capital intensity o f the sector, few donors have yet pledged funds for large-scale transportation projects.
1 1. The roads sub-sector i s mentioned bne f l y in this document as it i s subject o f the recently approved IDA project, the Emergency Infrastructure Rehabilitation Project. The rai lway sub- sector i s expected to be picked up by private investors when and if the mining sector takes up again. Manne transport and c i v i l awation are central to sustain and expand economic actiwties in
’ See Liberia: Emergency Infrastructure Project. (IDA/R2006-OIOO), June 1,2006 and Liberia Emergency Infrastructure Project - Supplemental Component. (IDA/R2006-0192), October 6,2006.
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Libena and as such a top Governmental pnon ty In addition, marine transport and c iv i l aviation infringe o n issues of safety, security, and stability in a country s t i l l characterized as a fragile post- conflict environment. Sector issues are discussed at length in Annex 1.
Sector Strategy
12. Repair o f cntical infrastructure at the port and the airport was declared a top priority o f the new Government because o f i t s direct impact o n safety (airport), stability and long-term peace (port). In addition, by improvlng operational efficiency and financial transparency, the Government aims to increase public revenues and fight corruptive practices. Fol lowing the lifting of the UN sanctions o n diamonds and timber, the Port o f Monrovla i s expected to become a key gate for trade export.
Mar i t ime Sub-sector
13. Libena has f ive ports, Monroma, Buchanan, Greenville, Harper and Robertsport. Before the war these ports handled about 200,000 tons o f general cargo and around 400,000 tons o f petroleum products per year. In addition, Monrovia and Buchanan handled a l l the bulk i ron ore exports, and Buchanan and Greenville were responsible for most o f the timber exports.
14. C iv i l war and international sanctions severely disrupted port operations while extensive looting rendered most o f the facilities useless. Today, nearly 100% o f the dry-bulk and containers trade i s being handled through the Port o f Monrovia. In addition, i t s fuel jet ty i s responsible for 100% o f fuel (oil, gasoline and je t fuel) imports. The other ports are barely operational with negligible trans-shipment activities between Monroma and the four smaller ports.
15. Given the above volumes, the Port o f Monrovia i s the supply line/economic life-line o f Libena, responsible for nearly a l l imports and exports f rom the country A large exporter o f timber, rubber, i r on ore, and agncultural products in the past, Liberia’s economy today i s mostly import-based. The pnmary food for the population i s imported nce. I t s price, as wel l as that o f fuel, i s directly correlated to port accessibility and efficiency The availability and price-stability o f imported commodities impacts stability in a country where fluctuation o f nce-prices fueled two o f the c iv i l wars. Unsurpnsingly, the needs assessment for Libena, developed jo in t ly by UNDP and the W o r l d Bank priorit ized the reinstatement o f operations in the Port o f Monrovia as a most critical activity in the sector.
16. Physical infrastructure at the port i s in a generally deplorable state. Collapse o f cntical infrastructure and superstructure of the port i s imminent. The physical layout o f the port i s unsuitable for modem port operations. These operations are further hampered by the unavailability o f equipment, in both number and quality, and the general lack o f maintenance o f said equipment.
17 In preparation o f the proposed project and as part o f the TFLIB-supported Infrastructure TA, the Bank financed the technical assessment o f the Port o f Monrovia with the a im o f identifying emergency works and actions to bring operations to acceptable levels. The assessment concluded that immediate intervention i s needed to rehabilitate the infrastructure in order to keep the Port operational. Identif ied emergency works are in the range o f US$40 mill ion, o f which this project proposes to support crit ical repairs cost at about US$7.0 mi l l ion. A longer-term Port Master Plan including an assessment o f the different management options to support long term sustainability has been developed for remew and discussion with the Government.
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18. In April 2005, UNMIL secured the port and since then i s responsible for the providing on-site secunty Today security at the port i s provided jo in t ly by UNMIL and the Libena National Police (LNP).
Civil Aviation
19 Roberts International Airport (RIA), about 45 km outside Monrovia, i s the only international airport in the country and the only airport open for f ixed wing traffic. James Spnggs Payne located wthin Monrovia’s c i ty boundanes as wel l as several other functioning airports are operated by and used only for UN flights to transport UN personnel and equipment. All other domestic c i v i l aviation ceased dunng the years o f stnfe.
20. Before the war, L ibena had one operational international airline, L ibena Airways. However, it has since been closed and i t s assets sold off. At present, air traffic i s sparse with only one international airline and three infrequent West A h c a n carriers servicing Libena.
2 1. During the war penod, the airport suffered severe damage to the point that operations had to be suspended for several years. The runway became inoperable due to craters and other damage as a result o f bombings. The terminal building was burned down. From 1998 to 2002 rehabilitation works were undertaken under a grant donated by the Republic o f China (Taiwan) in which the runway pavement surface was repaired, new navigational equipment installed and three fire trucks were delivered.
22. In 2003 fol lowing the CPA, UNMIL secured RIA and stationed a large troop contingent at the airport premises. Today, security at RIA continues to be the full responsibility o f UNMIL. A Standard Operating Procedures (SOP) document for RIA was drafted by UNMIL and approved in 2004. Throughout this period, UNMIL has been implementing l imi ted maintenance and rehabilitation works at the airport.
23. In 2005, the Bank financed from TFLIB the technical assessment o f RIA. It identified emergency works needed to ensure safety o f airport operations for US$4 mi l l ion. Of these, the most critical portion costed at US$0.6 mi l l ion i s proposed for funding under this project. None o f these proposed works will be financed by UNMIL. A longer-term Master Plan for the development o f RIA, including institutional changes has been developed and submitted to the GOL for review and discussion.
Institutional Framework
24. The Ministry o f Transport i s responsible for developing pol icy directions for the transport sector and as such i s responsible for the maritime and avlation sub-sectors as well. Currently, the Ministry has l itt le capacity to implement this responsibility During the war, the Ministry lost i t s data and documentation to perform i ts duties. I t s offices have been completely looted and there i s n o equipment left. The Ministry i s in dire need o f a l l hnds o f basic office equipment, vehicles, and training for i t s staff.
25. Presently, there i s n o National Transportation Plan or other holistic strategy for the development o f the sector. Whi le not envisaged in the proposed emergency project, technical assistance for a longer-term institutional reform o f the transport sector i s much needed.
26. The Ministry o f Public Works i s responsible for execution o f publicly funded c iv i l works. Some core capacity and resources exist within the organization and the Emergency Infrastructure Project (EIP) n o w under implementation, jo in t ly with this Project, i s building targeted fiduciary
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capacity through a Special Implementation Unit (SIU) to be hosted by the Ministry and a Project Financial Management Unit (PFMU) at the Ministry o f Finance. The use o f these two units as we l l as the assistance provided by international financial controllers through the GEMAP framework wil l help ensure the proper use o f resources associated with both infrastructure projects.
27 The National Port Authonty (NPA) has, with legislation passed in 1974, been assigned to manage a l l Liberia ports. The NPA i s an incorporated State-Owned Enterpnse (SOE), required to provide and maintain port facilities and denve i t s main revenue f rom marine and port service, storage and handling charges. NPA’s management i s oversight by an Executive Board appointed directly by the President.
28. NPA i s staffed with some 1,700 employees, which by international companson indicates significant overstaffing. The port i s a public port with most services provided by NPA, who i s the owner o f a l l facilities, infrastructure and superstructure. At i t s own accord, NPA has started a gradual reduction in staff numbers.
29 The Roberts International Airport (RIA) and a l l i t s operations are managed by Roberts International Airport Agency (RIAA). In contrast to the NPA, RIA has not been incorporated and technically, it i s a public budgetary entity, whi le in reality, i t functions as a State-Owned Enterpnse (SOE).
30. The situation i s different at the newly established (January 2006) Civil Avlation Authonty (CAA) where Government directly funds the C A A . Under the Governance Reform Committee o f the NTGL, the c i v i l aviation l aw was drafted, which pnncipally accommodated Yamoussoukro declaration.
3 1. Management practices at both the NPA and RIA are weak. Bo th entities were audited in 2004 as part o f a larger effort financed by the EC to establish a baseline for a follow-up institution strengthening effort at five revenue-generating SOEs. Findings concluded weak management, operational structures and systems, largely non-existent financial controls, and abundance o f nontransparent, largely corruptive practices.
32. T o react t o this challenge, the Government decided to mandate al l SOEs to consolidate their revenue collected in n o more than two escrow accounts (for L ibenan and foreign currencies) at a Libena commercial bank. In addition, both SOEs were included on the GEMAP l i s t where internationally-recruited financial controllers with binding co-signature authority are being deployed for a penod o f one to two years with the objective to improve financial management practices. The financial controllers have been tasked to design, establish, and monitor a system o f transparent financial management in order to secure revenue flows into the escrow accounts. The financial controllers are also responsible for revlewing and signing a l l expenditure vouchers, which should not exceed approved SOE budgets. In cases o f financial irregularities or disputes, the financial controllers are mandated to submit the issue for review and resolution with one o f the GEMAP bodies - the Technical Team or the EGSC. This stringent control mechanism has been introduced in order to strengthen fiduciary practices whi le also build capacity at both SOEs.
33. In addition to the financial controller, the NPA will benefit f r om a port operations specialist for a period o f one to two years. The port specialist will review current operational practices including tan f f and fee structures, the NPA organigram and corresponding staffing levels, and port secunty issues. The port specialist wil l work with the NPA and the Bank Technical Assistance (TA) provided under this project to develop the strategic framework for the
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sector and draft a plan for corporate reorganization. Both the financial controllers and the port operations expert are financed by USAID.
Response of the International Community
34. Investment needs in Libena are enormous, span across a l l sectors, and reach tens o f mi l l ions o f dollars. The two largest international donors - the United States (US) and the European Commission (EC), who are collectively responsible for close to 70% o f pledged funds in the transitional penod, are active in the social and utility sectors. The Bank, o n the other side, has been leading the dialogue with the Government in the transport sector. In partnership with the Bank, the Uni ted States Agency for International Development (USAID) has funded the financial controllers and the port operations specialist at the two SOEs, whi le UNMIL provides security at both the airport and the port. Recently, potential interest was also signaled by the U S to invest additional funds at the Port o f Monrowa. The Bank team has initiated discussions with U S officials on possible US-funded investments and will pursue this possibility throughout project preparatiordimplementation.
35. The volume o f required investments to rehabilitate transport infrastructure and achieve tangible results have made it diff icult for donors to engage in the sector. As a result, rehabilitation o f the transport infrastructure on a large scale with the goal o f producing quality transport corndors vital to sustained economic development and trade facilitation has yet to be undertaken.
A.2 Rationale for Bank’s Involvement
36. Libena was classified as a middle-income country before the war. During the years o f conflict it expenenced a significant decline in living standards and i s currently one o f Akita's poorest nations. The peace agreement and the subsequent stability, resulting in the successful election o f a new Government, offer L ibena a unique opportunity to rebuild i t s shattered economy and to establish a stable and democratic society After years o f war and dictatorship which saw aid f rom the international community almost disappear, L ibena today i s supported by major international partners in an effort to promote stability in West A fnca - a region o f frequent conflicts and chronic instability
37 The case for Bank involvement in Libena at this time i s compelling. Fol lowing nearly 3 years o f peace and with a democratically-elected Government in place, the ground i s prepared for reconstruction and recovery In order to build a functioning economy and restore the l ivelihood o f the country’s population, Libena’s new Government needs to be able to re ly o n an adequate response from international donors both in terms o f expertise and finance. In addition, peace provides a window o f opportunity for the Bank to rebuild i t s knowledge base and understanding o f national partner institutions, both o f which are essential to increase readiness for a Bank lending program when that becomes possible.
38. The Bank has had extensive involvement in the rehabilitation o f the economic management o f post-conflict countnes and collapsed states wor ldwde. The Bank’s expertise in reinstating large-scale transport infrastructure i s equally broad and can be used successfully in a country in dire need o f experience and resources.
39 The activities proposed under this Grant build o n the infrastructure TA work carried out under TFLIB, and are in l ine with the overall Bank’s assistance for Libena outlined in the CRN. The proposed project will help the GOL mobilize resources f rom other donors and in coordinating various inputs and contributions. Such coordination i s essential in assisting the Government whi le they establish and coherently manage the overall reconstruction program.
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40. Immediate emergency investments at the Port o f Monrovia and RIA are cntical. Failure to address the needs o f the Port n o w would have far-reaching consequences on the entire economy o f the country The Port i s the supply l ine o f the country both in terms o f food and fuel. Any disruption in the services of the Port will affect the entire economy, increasing commodity prices (especially o f rice and fuel), and jeopardizing stability Given the dilapidated condition o f the port structures, i t i s reasonable to expect system, facil i ty or equipment failures or collapse to occur at any given point o f time. The great urgency o f refurbishment and repair at the airport stems from the fact that safety standards are so heavily compromised that employee and passenger health i s jeopardized. The Bank’s funds will therefore have enormous and immediate impact and will help prevent further social and economic destruction.
41. Given the Bank’s comparative advantage in the infrastructure sectors and the fact that n o other major donor has immediate plans to invest significant funds in the repair o f the port and airport, the Bank’s involvement becomes compelling.
A.3 Higher Level Objectives to which the Project Contributes
42. The strategic goal for Bank engagement i s to assist in the process o f peaceful economic recovery, to which this project contributes by rebuilding shattered infrastructure in two high pnor i ty sub-sectors. Improved safety o f operations and refurbished facilities at the Port o f Monrovia and Roberts International Airport will safeguard peace and order, and assist in attracting pnvate operators for business. In fact, being two o f the revenue-generating agencies in Libena, the SOEs have the potential to advance their financial position and attract pnvate sector involvement should their technical and commercial performance improve.
B. PROJECT DESCRIPTION
B.l Grant Instrument
43. The instrument for the Infrastructure Rehabilitation Project (LIRF’) i s a Trust Fund Grant.
B.2 Project Development Objective and Key Indicators
44. The project development objective i s to provlde Government with emergency support to restore pnon ty infrastructure in the Port o f Monrovla and at Roberts International Airport and assist the Government in developing a medium-term strategic framework for rehabilitating the por t and avlation sectors.
45. Successful implementation o f the project will be evidenced by.
0 Identif ied c i v i l works implemented
0 Institutional capacity strengthened
0 Government has developed a strategic framework for port and aviation sector
B.3 Project Components
46. The Grant o f US$8.5 mi l l ion will start addressing the priontized emergency works and activities in the Port o f Monrovia and at RIA, and provide targeted support to Government in
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achiewng basic organizational capacity for efficient management o f the respective sectors. The project also aims during the relatively short implementation penod, to support the Government in formulating a strategic framework for the sectors. Implementation penod i s 4 years.
47 The port works were selected fol lowing presentation to NPA o f the findings and recommendations o f a technical report and later at a workshop with stakeholders. The guiding principle for the selection was that: (i) ships would be able to call at the port under minimal conditions o f safety; and (ii) major commodities required by the country (food and fuel) can continue to be handled. Complementing the actiwties financed under the Grant, the Government i s under i t s own funding addressing required investment for provision o f marine semces and is, with support o f the Bank, prepanng for pnvate sector concession o f handling, storage and receipddelivery NPA i s also undertalung actions to install minimal safety and secunty standards.
48. Cost estimates for c i v i l works at the port were formulated and presented as l o w and high range o n the basis o f Rough-Order-Magnitude (ROM) wth detailed designs to be prepared by contractors. The three cost estimates for port works presented below are the average cost estimate for each. As this results in a high degree o f uncertainty, i t can only be determined during procurement for the works whether the Grant i s actually sufficient for a l l activities and, if not, what specific scaling-down i s needed. In Annex 5, under discussion on project implementation, a basic approach to do this i s identified. Conversely, if bids are lower than expected, i t may offer the opportunity o f including the second highest priority o f needs at RIA (bid package 2 description in Annex 3).
49 F rom a navigational safety point o f w e w it i s necessary to maintain an entrance channel width o f 150 meters with an 11 meter draft. Based on bathymetric survey results, this requirement i s not met by far as the channel width i s less than 100 meters at that draft. The dredging quantities associated wth this navigational requirement are in the order o f 500,000 m3, including dredging o f part o f the port basin. As any obstruction o f the entrance channel due to stranding o f a vessel might directly impact the supply line o f Libena, dredging operations were given the highest pr ior i ty
50. The refined products jetty, which i s the only functioning one in the country, has technically detenorated to a degree that i t forms a severe nsk to the country’s fuel supply Furthermore n o fire fighting installation o n the refined products jetty i s available, increasing nsks even further. Within the Port o f Monrovia there are n o fire fighting alternatives.
5 1. The o i l jetty will be structurally upgraded, pipes replaced (until landfall) and adequate safety measures introduced. There i s an informal agreement with the Libena Petroleum and Refinery Corporation (LPRC) to replace the o i l pipes fi-om jet ty landfall to their tank farm and to co-ordinate these works with those o f the jet ty
52. Collapse o f the jet ty would place the country’s fuel supply in great danger and a disrupted fuel supply would among other things, stop food supply and distribution, UNMIL actiwties, power generation and water supply
Monrovia Port: Prowding Fire Fighting Cauacitv at NPA Yard (US$2.15 million).
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53. The chances o f fire in the port are relatively high. The effects o f a large scale fire in the port would be disastrous to the country’s food supply and export. At the moment there i s n o fire engine in the port, the fire hydrant system i s not functioning, there i s n o water supply and there i s n o trained NPA fire bngade.
54. yard i s made functional again and the NPA fire brigade adequately equipped and trained.
It i s therefore o f great importance that minimal ly the fire water supply system to the NPA
55. The works will provlde for the design, supply, delivery, handling, installation, commissioning, testing and setting to works o f needed equipment for acceptable firefighting capabilities at NPA yard.
Roberts International Airport: Navlgational, aeronautical, meteorological and security equipment (US$0.60 million).
56. This activity addresses the f i rst priority intervention at RIA with provision for supply and installation o f various navigational, aeronautical, meteorological and security equipment, including earthing and lighting protection system, runway and taxiway edge lighting, provision for calibrating, and aeronautical and meteorological equipment.
(ii) Technical Assistance and Capacity Building (US$O. 15 million).
57 Provision o f selective and ad-hoc technical assistance to Government, including support t o develop a strategic framework for the sub-sectors, as wel l as targeted training in NPA and RIA to complement normalization o f operations. The project will assist NFA in bringing about a container terminalhandling concession and will support NPA for tendenng a marine or towage service contract i f required.
(iii) Project Management (US$0.65 million).
58. Overall implementation responsibility will be by the Ministry o f Public Works through a Special Implementation Unit (SIU) which has been set up to provide coordination, procurement, M&E and support to safeguard management. Financial Management will be under the auspices o f the Ministry o f Finance, through a Project Financial Management Unit (PFMU), also in the process o f being set up. These arrangements are arranged jo in t ly with a separate project, the Emergency Infrastructure Project (EIP), which will be implemented in parallel with this Project. The S I U and PFMU are staffed with a combination o f competent MPW and M o F staff and selected technical assistance.
59 In addition to the core fiduciary competencies, the S I U for the purpose o f this Project will be strengthened with a port engineer and an envlronmental engineer o n retainer, as wel l as other specialist support as may become needed.
B.4 Lessons L e a r n e d and Reflected in the Project Design
60. The TFLIB-funded technical assessments underpinning the project have been carned out during the transitional penod that followed the armed conflict. Mos t development assistance during this penod was designed to al low employment o f low-skilled ex-combatants and Internally Displaced Persons (IDPs) with the objective to preserve stability by keeping former fighters away from their fighting routine. By the same token, longer-tern sector reforms which would have inevitably involved down-sizing o f the SOEs, were lef t outside o f the immediate development agenda. Fol lowing the end o f the transitional penod, the new Government has inherited SOEs
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with outdated policies and n o sector vision, strategy, or plan. As Libena graduates f rom non- accrual status to a full IDA client and resources from I F I s start to flow, sector strategies would become a prerequisite for donors’ assistance. As development focus gradually shifts f rom preserving stability and ensunng that humanitanan needs are met to supporting sustainable development, medium and longer-term vision and corresponding plans would have to be developed.
61. This project incorporates the lessons learned by engaging the Government in a sector pol icy dialogue (TA component). The objective i s to initiate a longer-term process o f deciding on pol icy choices for the sector to be made after reviewing the institutional framework, supporting legal instruments, sources o f funding for capital investments and financing o f recurrent costs. The project also draws on lessons learned in recent post-conflict countnes that harnessing and developing a concentration o f implementation competencies through a consolidated PMU for multiple projects can be highly effective.
B.5 Alternatives Considered and Reasons for Rejection
62. Initially, the project team considered third-party execution by UNOPS. However, as the project preparation evolved, the team decided to utilize the emerging capacity at the MPW and create synergy and economies o f scale through the jo in t use o f S I U and PFMU by EIP and this Project, thus reducing project implementation cost (estimated at US$1.2 mi l l ion if implemented by UNOPS and US$0.65 mi l l ion with described arrangements). The added advantage o f national staff retaining sk i l l s developed throughout the project implementation further outweighed implementation by United Nations Office for Project Services (UNOPS).
C. IMPLEMENTATION
C.l Partnership Arrangements
63. As described prewously, there i s close collaboration among the international development partners in Liberia and with the Government. Principal donor coordination will take place through the Liberia Reconstruction and Development Committee (LRDC), the body created by Government and chaired by the President, to strategize, develop, coordinate and monitor the implementation o f a results-based national development program.
64. As it relates to the port and awation sub-sectors, U S A I D i s financing support with financial controllers for selected revenue earning state owned enterpnses, including NPA and Roberts International Airport Authority (RIAA). For NPA, a por t operations specialist consultant i s also provided. The consultants are collaborating closely with LIRP and the Bank, which i s leading support and reform o f these sub-sectors.
C.2 Institutional and Implementation Arrangements
65. Bo th infrastructure projects, the EIP in implementation and LIRP, will be implemented jo in t ly with the arrangements agreed on for the former (EIP), which has been set up within the Ministry o f Public Works and Ministry o f Finance with the establishment o f S I U and PFMU
66. MPW will implement the Project through a Special Implementation Unit (SIU) staffed with a combination o f competent M P W staff and selected technical assistance. The SIU, managed
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by a competent full-time project coordinator (a high level senior officer n o w appointed), will include as key staf f engineers, a Transport Economist, a Financial Management Specialist, Procurement Specialist and an Enwronmental Expert. The S I U has the appropriate s k i l l s mix, including technical, project management, fiduciary as wel l as environmental and safeguard sk i l l s t o carry out i t s functions. In particular, the S I U wil l be responsible for: a) assuring steady progress o f the procurement in accordance with an implementation schedule reviewed and approved by the Wor ld Bank; b) ensuring satisfactory implementation o f activities included in al l contracts; c) ensuring that a high ethical standard and transparency i s maintained throughout the entire project implementation; and d) monitoring and evaluating performance indicators and results. The S I U will have basic financial management capacity to support the requirements o f the PFMU that will be responsible for a l l financial management tasks.
67 MOF will be responsible through the Project Financial Management Unit for financial management, disbursement and related reporting. The PFMU will have a unit manager with international accounting qualifications acceptable to the Bank, project accountant and an internal auditor.
68. environmental engineer will be engaged o n retainer basis.
For the purposes o f this project, an internationally recruited port engineer and an
69 T o ensure appropriate collaboration among the institutions engaged, appraisal o f the project agreed with Government the steenng group arrangements that will ensure that any pol icy or strategic discussion related to the project receives the needed stakeholder inputs.
C.3 Monitoring and Evaluation of Outcomes/Results
70. The S I U will be responsible for reporting on the results framework.
C.4 Sustainability
71. Beyond the affected infrastructure, which durability should be ensured in the medium term, the project design i s not aimed at achieving a sustainable transformation o f the port and aviation sub-sectors. Rather i t aims at rehabilitating a handful o f pnont ized emergency works to prevent collapse o f specific semces at these infrastructure nodes.
72. Nonetheless, i t i s expected that the targeted technical assistance that will be provided and the pol icy dialogue the Bank will engage in wth the Government dunng the implementation o f this Grant, will result in a strategic framework and common understanding for the sub-sectors, which in turn may become the foundation for institutional reform and operational sustainability
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Risk
To project development objective
Risk Mitigation Measures
Collapse o f dilapidated infrastructure in the port and alrport not subject to LIRP funding causes operational shut-down
Strategic Development Framework for port and aviation sectors not developed
To component results
Limited Government experience and capacity to prepare and manage the Project
Cost estimates may be too optimstic andor private sector mterest in civ i l works l im ted except at high premum
Government does not follow through on bringing about a Container T e m n a l Contract
Labor resistance
Overall ksk Rating H = High; M = Medium
Bid document preparation for some o f the most urgent infrastructure rehabilitation or construction, which the Government can use to solicit funds
TA support on this policy development w i l l be provided and the Bank w i l l work through the LRDC to ensure this action receives the lughest attention
LIRP wi l l be implemented by a unit in MPW, staffed with local specialists and supported by mtemational experts. Intensive supervision of 3-4 mssions per year
Regional advertismg for works may elicit interest o f foreign companies acquamted with the region. Possible bundling o f firefighting and o i l je t ty contracts m one bid
Bank w i l l work through the LRDC to ensure t l u s action receives the hlghest attention
Sensitize Government and managements of N P A and RIA o f the importance o f labor relations and communication
Risk Rating with Mitigation
H
M
H
H
M
M
H
C.6 Grant Conditions and Covenants
73. The project has the fol lowing conditions o f effectiveness:
The S I U has been established under terms o f reference acceptable to the Bank and the Project Coordinator and the procurement specialist appointed, under terms o f reference and with qualifications and expenence acceptable to the Bank, f rom either existing staff of the Recipient or recruited under the Bank’s Procurement Guidelines; and
The PFMU has been established under terms o f reference acceptable to the Bank and an accountant appointed, under terms o f reference and with qualifications and expenence that are acceptable to the Bank, f rom either existing staff o f the Recipient or recruited under the Bank’s Procurement Guidelines.
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74. The project has the following conditions o f disbursement:
Until Government fully establishes both the S I U and the P F M U it would have access to US$500,000 o f the grant only Government will achieve this by appointing the fol lowing staff to the SIU; a procurement specialist and environmental specialist, and to the PFMU; unit manager and an internal auditor. These staff shall a l l have qualifications and expenence acceptable to the Bank
No withdrawal shall be made for payments made pr ior to the date o f the project Grant Agreement being signed
75. The Grant will be subject to following covenants:
0 The Government with support f rom the Bank will tender through a competitive and transparent process a Container Terminal Contract in the Port o f Monrovia n o later than by end o f April 2007
The Government will ensure that RIA carries 3rd party liability/aircraft insurance. Procurement for the benefit o f RIAA i s contingent o n this insurance being in place.
0
D. APPRAISAL SUMMARY
D.l Economic and Financial Analyses
76. In preparation for the LIRP, studies were undertaken for the port and airport (as wel l as roads, telecom, power, water and sewage - not subject to direct investment support under planned LIRP) with the a im o f identifying emergency works and actions, pnont ized under acceptable approach, to bring the operations to acceptable levels.
77 port. For identifying prioritized order o f works and actions for investments in seaports, the traditional method i s use o f a multi-criteria-analysis applied and leading to decisions based on the added value o f a certain measure to safety and efficiency o f port operations based o n a variety o f cntena and weighing factors.
78. The extreme situation in the Port o f Monrovia necessitates a different approach to prioritization. The risk o f not implementing a particular measure to port operations and more broadly the supply line/economic l i fe l ine o f Liberia i s used as guideline for pr iont iz ing the emergency works.
79 undertaken uti l ized the fol lowing categonzation and characteristics to priontize these.
Technical assessment o f the port resulted in a long l i s t o f 25 works and activities to be
80. Based o n the categonzation, a priontized short l i s t o f 8 works and activities was selected. NPA has confirmed both the identified long and short l ist as basis for support. The table below shows the short l i s t and notes the status or actions o f each activity
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Characteristics
Works essential for safety o f port workers and for maintaining / assuring current level of port activity.
Works essential for improving port effectiveness and efficiency.
Medium Works strongly advisable for improving port effectiveness and efficiency.
Low Works desirable for improving port effectiveness and efficiency.
Priority Emergency Works Category Note
................................................................................................................................................................................................................................................................+� 1 Dredging critical " ............................................................................................................................................. LIRP funded 2 Tugboat overhauYmarine service critic a 1 NPA mtends to procure a tug3 3 Upgrading O i l Jetty critical LIRP funded
.............................................................................................................................................. Providing f i re fightmg capacity at NPA
................................................................................................................................................................................................................................ " ........................................................................................................................................................................................................................... No t addressed due to current
NPA Immediate Action - many o f proposed actions can be implemented
Capital cost avoided with WB support in bringing about Container
7 Port Security wi th limited funds .................................................................................................................................................................................................................................... ha!! ......................................................................................................................................................................................................... Improvement container handling
equipment, container yard and contamer 8 operations high Concession
81. shortlisted priorities are being addressed.
With a combination o f NPA actions and support f rom the project, seven o f the eight
82. Priorities 1, 3 and 4 will benefit f rom LIRF' investment funds. In order to maximize impact o f investment funds, it i s agreed that container concession (inherent in p n o n t y 8) be granted for short term period. NPA o n i t s own account and initiative has implemented pr ior i ty 5 and will advance o n pnon ty 7 On pr ionty 2, NPA i s in the process o f p r o c m n g a tug.
83. The most expensive investment, demolition and reconstruction o f Marginal Whar f (identified as pr ionty 6), i s estimated to cost U S 2 0 mill ion, and will need to be addressed
NPA i s in the process o f procuring a tug. However, at Government request, LIRP can assist in preparing tender documents and streamlined tender process for bringing about a Towage or Marine Service Contract if tug procurement proves to be unsuccessful.
3
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through other means. Should the possibility o f US-funded investments at the port materialize, the team would advise the U S partners that repairs at the Marginal Whar f are considered first.
84. Airport. The United Nations I C A O (International Civil Aviation Organization) developed the principles and techniques o f international air navlgation and promotes the planning and development o f international air transport (non-military avlation, both pnvate and commercial) to ensure safe and orderly growth o f airports. I t provldes standards and recommended practices, amongst others, for safety, secunty and operational procedures, and for airport planning and designing. Compliance with ICAO standards i s therefore the international benchmark for three basic requirements: (i) safety; (ii) secunty and (iii) aircraft and passenger handling.
85. On the basis o f ICAO, RIA emergency needs were assessed and pnont ized fol lowing order based o n interventions needed to reinstate safe and efficient operation at the RIA in short- and medium-term. These are: (i) air safety; (ii) ground safety; (iii) airside pavement conditions; (iv) secunty; (v) airside operations; (vi) terminal building area and landside facilities; (vii) utilities; and (viii) envlronmental conditions.
Priority Emergency Works Note
Supply and installation o f navigational
Refurbishment o f RIA R&FF trucks,
Supply o f matenals for airside and repairs
Supply and maintenance o f airport
air safety/ 1 equipment, etc ground safety LIRP funded
2 ambulance, etc ground safety realized in agreed LIRP package
3 airport buildings temnal funds
4 equipment landside funds
5 Improvements o f utilities landside funds
First choice for financing if bid savings
Not addressed due to current unavailability of
Not addressed due to current unavailability of
Not addressed due to current unavailability o f
86. Only the f irst p n o n t y identified will be funded by LIRP However, draft bidding packages for the remaining emergency works have been developed and will be shared with donors for consideration and funding.
D.2 Technical
87 Technical review o f the port works to be f inded will take place during implementation, as these will be procured on the basis o f design-installhonstruct. Technical assessment o f each o f the pnontized port works has been undertaken and solutions proposed. As the technical studies solely identified works and activities and bidding documents will include design o f the needed works, costing for these were for the most part based o n Rough-Order-Magnitude (ROM) approach which has relatively large margin o f error (approximately 30-35%).
88. Dredging. The port’s access channel i s silting up, especially at the south side o f the entrance channel. In the past a number o f bathymetric surveys were carried out, which showed a swift decrease o f the width and depth o f the channel. Because o f confl icting survey results a new bathymetric survey was executed to also be used to determine the dredging requirements. The new survey data showed that more sediment had settled around the entrance area at the south side compared to the earlier survey plots. As a result the minimum width o f the entrance channel at
16
Chart Datum4 or CD -10m i s approximately 80m. F rom the entrance o f the port to the basin the channel i s approximately 850m long with an average width o f approximately lOOm at CD -10m. Directly at the seaward end o f the marginal wharf shallow spots were observed up to CD -7Sm (possibly due to debris o n the seabed floor).
89 o f vessels o f the size calling on Monrovia.
The scope and draft for dredging proposed i s needed for the safe entry and maneuvering
90. Oil iethr was assessed through an above-water vlsual inspection and underwater detailed inspection. M a i n items included condition investigation o f alignment, steel thickness, corrosion, structural damage of: (i) trestles; (ii) dolphins; (iii) unloading platform; and (iv) inspection o f safety and envlronmental conditions.
91. A s a result o f the inspections it i s identified that for access trestle upper part o f foundations piles need to be cut and replaced and gratings, lightings and handrails replaced. The deck and upper part o f off-load platform structure needs to be replaced, fire fighting installed and fenders reinstated. Decks and bollards on dolphins need replacing and some dolphins need replacement and others refurbishment. Also a catwalk f rom off-load platform to a l l dolphins need to be constructed. Structure stands without corrosion protection and emergency repairs are needed. All o i l pipelines need replacing.
92. Firefiahtinq. Assessment o f the fire fighting facilities was undertaken in the o i l jet ty and the yard area, where the current port activities are concentrated. The operational functionality o f the existing fire protection installations i s non-existing. A fire fighting team i s based close to site, but i s laclung in al l important fire fighting equipment. Back-up f rom outside i s l imi ted to a fire engine o f the neighbonng LPRC. There i s n o municipal fire bngade in Monrovla and the nearest other functioning fire brigade i s at the airport.
93. Sea water fire protection system will provide for the main storage areas, berth areas and marine structures, supply mains to the existing buildings and connections to the fire fighting facilities o n the o i l jetty This will include the provision o f a salt water fire pump-house, distribution pipeline network and appliances.
94. Navigational. aeronautical, meteorological and secuntv eauipment. An in-depth study of existing safety and security equipment at RIA was undertaken. The recommendation acquisition and installing of various navigational, aeronautical, meteorological and secunty equipment was based o n examination o f operational reliabil i ty o f the equipment and determination on what was needed to bring these up to ICAO standards.
D.3 Fiduciary
95. Given the urgent nature o f the project and the need to start construction works as soon as feasible, some preliminary procurement steps will commence pr ior to the planned approval of the proposed Project. MPW has l imi ted capacity to undertake these init ial tasks, but wil l be supported by IDA in the init ial process.
96. The S I U and PFMU will be staffed with a combination o f competent MPW and M o F staff and selected technical assistance in the areas o f procurement and financial management and supervised or managed by a competent full-time manager (a high level senior officer now appointed) n o later than effectiveness. These entities will be responsible for: (a) assmng steady
Chart D a t u m o r CD refers to depth relative to tide levels (Mean Low Water Sprmg Tide) 4
17
progress o f the procurement in accordance with an implementation schedule reviewed and approved by the Wor ld Bank; (b) ensuring satisfactory implementation o f activities included in a l l contracts; (c) ensunng that financial and accounting records are maintained to a satisfactory manner; and (d) ensuring that financial statements and reports are prepared in timely manner for management and audit purposes.
D.4 Social
97 As pointed out in the preliminary environmental assessment (pEIA) contained in the Technical Assessment for the port, the proposed emergency works would have substantial positive social impacts. Physical improvement in workplace conditions will lead to better worker health and quality o f life, and fewer accidents. The works themselves will provide temporary employment for skilled and unskilled workers. As the port returns to pre-conflict efficiency, employment at the port may increase, and both new business and existing business expansion can be expected in the vicinity, particularly in services that cater to the shipping industry Thus the port improvements should stimulate further economic development. The main negative impact to be anticipated i s temporary disruption o f economic and social activities around the port as a result o f deliveries o f materials and equipment and removal o f waste materials. Another possible adverse impact i s negative interaction between “imported” workers and local populations, including conflict over employment opportunities and sexually-transmitted diseases.
D.5 Environmental
98. The project will provide substantial positive environmental impacts. At the airport, refurbishment and replacement o f equipment for navigation, safety and secunty will have a positive impact on safety for the airport workforce, airline personnel, passengers, and nearby residents. Within the port, the works to improve access to the harbor, refurbish the o i l jetty, install modem fire-fighting systems, and reorganize and re-equip the container handling yard will a l l contribute to reduced nsk o f accidents (including ship groundings) and spills, quick response to potential environmental catastrophes such as o i l fires. An overall improvement in housekeeping and waste management i s l ikely to fo l low the specific renovations and repairs.
99 N o adverse impacts are anticipated f rom the investments to be supported at the airport. The pEIA included in the Technical Assessment for the port has identified potential adverse impacts and categorized them as minor, moderate, and major, based o n magnitude, probability o f occurrence, and sensitiwty o f receptor or affected area. A general mitigation p lan (EMP) i s included in the assessment, and the impacts are re-rated assuming EMP implementation. The only major impact that remained after that analysis was conversion o f land for dredge spoil disposal, if a land-based disposal method were to be chosen. Since the analysis o f sediments in the harbor confirms that they are not hazardous and are thus suitable for disposal at sea, sea disposal has been selected and this major impact will be eliminated. The choice o f location for sea disposal must take into account the charactenstics o f the marine environment - current, depth, presence o f sensitive features such as coral reefs and sea grass beds, existence o f shellfish beds, recreational uses and fishenes. In other words, a more detailed environmental assessment that focuses on selection o f an appropnate spoil disposal site and method and that includes a site-specific EMP needs to be prepared, subjected to stakeholder consultation, and disclosed.
100. Impacts predicted to remain as moderate after EMP implementation were solid waste disposal, disturbance o f surrounding commercial activities, water pollutlon due to fuel spi l ls and turbidity f rom dredging or soil erosion, and occupational health and safety hazards to the workforce. All o f these can be managed through conditions in the contracts for works and supervision by an environmental engineer.
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D.6 Safeguard Policies
Safeguard Policies Triggered by the Project Y e s N o Envi ronmenta l Assessment (OP/BP/GP 4.01) [XI [I Natu ra l Habi tats (OP/BP 4.04) 11 [XI Pest Management (OP 4.09) [ I [XI Forests (OP/BP 4.36) [ I [XI Cul tura l Proper ty (OPN 1 1.03, b e i n g revised as OP 4.1 1) [XI Involuntary Resettlement (OPBP 4.12) [ I [XI Indigenous Peoples (OD 4.20, b e i n g revised as OP 4.10) [XI Safety o f D a m s (OPBP 4.37) [ I [XI Internat ional Waterways (OP/BP/GP 7.60) [I [XI Projects in D ispu ted Areas (OP/BP/GP 7.60)* [ I [XI
[ I
[ I
101. This project i s in Category B for enwronmental assessment. The pEIA with i t s general EMP has been prepared and disclosed. It recommends a more detailed impact assessment for dredge spoil disposal pno r to selection o f a disposal site and method. This assessment should be rewewed and disclosed by the Bank and the Government.
102. In i t s section on institutional responsibilities, the pEIA defines roles for EPA, NPA and, most important, for an international environmental supervising engineer to assist NPA in overseeing the implementation o f impact management and monitonng measures. The pEIA specifies that a l l contractors should be required to prepare, obtain approval for, and implement health, safety, environmental and social management plans (HSES-MP) for their respective activities. Each HSES-MP should elaborate on the general mitigation measures identified in the pEIA as befits the particular activities covered by the contract. Each HSES-EMP should also contain the necessary measures to implement general and specific conditions o f contract such as proper notification to surrounding businesses o f scheduled disruptions in traffic or utility service and maintenance o f a contact point for community complaints and questions. The HSES-MP for dredging and spoil disposal would be the most detailed and would be based on the detailed EA for that activity T o maximize social benefits and avoid negative social impacts, contractors should be asked to commit t o achieving specific targets, as generous as possible, for local hiring and to managing interaction between their workforces and the general public. The pEIA places the estimated cost for implementation o f impact mitigation and monitonng measures dunng the project at US$195,000. The projected cost for prowding NFA with adequate environmental management capacity, through staff training supplemented by engagement o f an enwronmental supemsing engineer i s an additional US$190,000. These costs, some o f which wil l be borne by NPA and some by contractors, are incorporated in the project budget. The pEIA also provides estimates o f environmental management costs during project operation and decommissioning, for use by NPA in planning and budgeting. See Annex 8 for more details o n the pEIA.
D.7 Policy Exceptions and Readiness
103. Whi le this Grant i s prepared in the spint o f OP 8.50, i t has benefited f rom in-depth technical studies and i s largely ready for implementation. As the financial systems o f the PFMU will not be fully set-up by effectiveness, formats of in tenm un-audited statements (IFRs) will only be agreed on within two months o f Effectiveness. The sole safeguard issue o f concern,
* By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties'
claims on the disputed areas
19
location o f sea disposal o f dredged material has mostly been addressed, although final and detailed environmental assessment study will be done by contractor and subjected to approval by the Liberian Environmental Protection Agency Fol lowing revlew and approval o f the assessment by the Government and the Bank respectively, i t will be disclosed in country and internationally
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Annex 1 : Country and Sector Background LIBERIA INFRASTRUCTURE REHABILITATION PROJECT
1. Country and Sector Background
1. Fol lowing the end o f the 15-year long war in Liberia in 2003, the Country Reengagement Note (CRN) was endorsed by the Board o f Executive Directors on March 9,2004. Since that time the Bank has been implementing CRN’s approved activities, financed by the Trust Fund for Libena (TFLIB) and a L o w Income Country under Stress (LICUS) grant, in three key areas: economic management, community-driven development, and infrastructure.
2. This P A D builds on the work carned out under the Infrastructure Rehabilitation TA Project financed by TFLIB, which identified cntical emergency works in the transport sector in the amount exceeding US$70 mill ion. The proposed activities under this PAD include only the most critical emergency works in the port and airport sub-sectors in the amount o f US$8.5 mi l l ion. Another project in the roads sub-sector was approved in June 2006 funded by a pre-IDA clearance grant in the amount o f US$30.0 mi l l ion. It i s expected that other partners will come together to provide financing for the remaining pr ionty infrastructure needs. T o this end, an international Partners’ Forum will take place in February 2007 to discuss Government’s development strategy and to explore possibilities for new donor flows to support Government’s priorities.
2. Country Issues
3. Libena i s undergoing profound changes, A country long known for corruption and exploitation o f the population by a minonty, descended into a war in the 1980s known for i t s brutality against civilians. N o w three years past the end o f a 15-year long c i v i l war, L ibena faces incredible difficulties as i t begins the long process o f reconstruction. The Comprehensive Peace Agreement (CPA) signed in Accra, Ghana in 2003 along with UN Secunty Council Resolutions 1509 and 1521 ushered in a 2-year transitional period which has produced uneven results. However, the transitional period ended with the successful October-November 2005 elections in which a clear majonty o f the electorate gave the new administration headed by El len Johnson- Sirleaf a strong mandate for change. Capitalizing on this mandate, the administration embarked on an ambitious 150-day reform program which included movlng forward o n long-delayed basic semces and infrastructure reforms, which i s now being further expanded under an I-PRSP This has provlded the Bank a unique opportunity to work jo int ly with a reformist Government in critical areas, as covered throughout this document. Today, Liberia i s beginning a new phase in i t s history and the prospects for lasting peace are now better than they have been for years.
2.1 The Transition Period (2003-2005)
4. Fol lowing the signing o f the CPA, the National Transitional Government o f L ibena (NTGL) was established to administer the penod o f transition to peace, prepare and carry out elections to result in a new democratic Government in office. T o facilitate the transition, the United Nations Mission in Libena (UNMIL) was established. I t s mil itary and c i v i l personnel o f over 15,000 have a mandate to support the implementation o f the peace process and foster development.
5. In December 2003, the UNDP and the Wor ld Bank undertook a jo in t mission to conduct a needs assessment for Liberia. T h i s led to the acceptance o f a Results Focused Transitional
21
Framework (RFTF) that defined the most urgent activities to be undertaken to, amongst others, reinstate infrastructure and social services. The RFTF was adopted by the NTGL as i t s strategic plan to guide the transitional period.
6. In March 2004, the Bank’s Executive Directors discussed a reengagement strategy for Libena’ This strategy outlined a plan for Bank re-engagement within the RFTF in three pnonty areas: economic management, infrastructure rehabilitation, and community-based development. The Bank’s strategy envlsaged financing from both the L ICUS TF and a grant from the Bank’s surplus. Subsequently, the Board o f Governors o f the Bank approved the transfer f rom surplus to the TFLIB o f US$25.0 mi l l ion as a grant to be administered by IDA. Since then, TFLIB and L ICUS funds - U S 2 9 . 0 mi l l ion in total, have been used to finance TA and investments in the three pnor i ty areas. In addition, a US$30 mi l l ion IDA pre-arrears clearance grant was approved in June 2006 to support the rehabilitation o f 2 major road comdors, an emergency electricity supply program and the rehabilitation o f water in Monrovla. An additional US$16.5 mi l l ion (IDA) will further support labor-intensive rehabilitation o f rural roads and urban sanitation works.
7 Libena had been a middle-income country before the c i v i l war began in late 1989 Fifteen years o f brutal devastated the country’s economy, i t s physical infrastructure, and i ts human assets. In August 2003, the wamng parties ended hostilities with the signing o f the Comprehensive Peace Agreement (CPA) in Accra, Ghana, and a National Transitional Government (NGTL) was established to administer a two-year in tenm period leading to national elections in October 2005. The United Nations Mission in Libena (UNMIL) was created and was given the mandate to support the implementation o f the peace process.
8. In 2003, the Uni ted Nations Development Program (UNDP) and the Wor ld Bank undertook a needs assessment for Liberia which led to the development o f a Results Focused Transitional Framework (RFTF). The activities in the RFTF were organized by cluster, and the Bank took the lead in the Infrastructure and Economic Management clusters. With a lead role in Infrastructure, the bank agreed to undertake assessments o f the emergency needs o n transport, power, water, and telecommunications.
2.2 Post-elections Liberia
9 In October-November 2005, legislative and presidential elections considered by observers to be free, fair and transparent led to the inauguration o n January 6, 2006 o f Ellen Johnson-Sirleaf. The new administration i s assured the continued support o f the UN and other partners in maintaining security and assisting the GOL in the restoration o f basic services, infrastructure and good governance. However, the challenges are immense. Regional conflict, s t i l l active in CGte d’Ivoire, continues to threaten the fragile peace across the border in Liberia as wel l as in Sierra Leone. Decades o f conflict, conflict-driven migration and a hentage o f corruption have depleted Libena’s pool o f skilled human resources. Three o f the country’s major sources o f export revenues and fiscal receipts (diamonds and forest products) continue to be under international sanctions by the UN Secunty Council due to their past role in financing conflict and contributing to regional instability
10. L imi ted available information suggests a modest rebound in economic activity since the end o f the internal conflict, largely driven by donor assistance. Fol lowing a sharp decline in economic activity in 2003, real GDP continues to recover (2.4% in 2004; projected 8.5% in 2005). However, the recovery o f agricultural activity constituting the largest pre-war export
~ ~~
See Liberia: Country Re-Engagement Note and Additional Activities (IDA/R2004-0046), April 2004.
22
commodity has been sporadic due to the slow return o f refugees to rural areas and largely destroyed or non-existent infrastructure.
11. The volati l i ty in the pnces for basic commodities and in the exchange rate has subsided, fo l lowing the easing o f supply constraints. Broad money has grown strongly since hostilities ended, with a surge in bank deposits. The Central Bank’s foreign reserve position has gradually improved f rom very l o w levels. However, Libena’s external public debt situation i s unsustainable. Liberia’s external debt i s currently estimated at US$3.1 bil l ion. Liberia i s in arrears to the Bank ( U S 4 5 6 million), the IMF (US$750 million), and the AfDB (US$200 million).
12. Against this background, the GOL has constituted the Libena Reconstruction and Development Committee (LRDC) as the main body and a mechanism to strategize, develop, coordinate and monitor the implementation o f a results-based national reconstruction and development program. The LRDC, chaired by the President consists o f key GOL Ministers and donors and i s organized around four pillars. These pillars include several Ministnes and are chaired by a leading Minister and co-chaired by donors. The four pillars include: i) Security, ii) Economic Revitalization, iii) Governance and Rule o f Law, and iv) Infrastructure and Basic Services. The Bank i s a Co-Chair o f the Economic Rewtalization and the Infrastructure and Basic Services Committees. The latter, chaired by the Minister o f Public Works, includes a l l infrastructure sectors as wel l as the social sectors - health and education. The Minister o f Public Works leads the dialogue on infrastructure development and represents basic semces, health and education at the LRDC.
13. The level and quality o f dialogue with the Bretton Woods Institutions (BWI) has improved considerably over the penod following elections. The IMF initiated a Staff Monitored Program (SMP) in April 2006 and presented a positive rewew o n progress in June. The six-month review will be undertaken in early November. At the same time, the Bank continues to strengthen i t s presence and actiwties in Liberia through support to economic management and community- driven development and infrastructure. A US$30 m i l l i on pre-arrears clearance grant was approved by the Board in June 2006 and a supplemental IDA grant was approved in October 2006 - this operation finances the rehabilitation o f key roads corndors, rural roads and urban works. In l ine with these developments, the proposed Credit responds to the request o f the GOL for emergency funds aims to reinstate critical infrastructure that was destroyed in the war.
3. Sector Issues
14. The transport sector in Liberia pr ior to the c i v i l war included road and railway networks, c iv i l aviation, and several ports. Today, the railway network does not exist, c i v i l aviation i s l imited to Monrovia with only UN flights operating upcountry, and the Port o f Monrovia i s the only operational port in the country
15. During the years o f conflict, the sector was able to undertake intermittent maintenance actiwties but n o penodic maintenance. Partial rehabilitation and new construction were sporadic and l imi ted in scope. As a result o f the chronic undennvestment and lack o f maintenance the rehabilitation requirements o f the sector today are enormous.
16. The Government recognizes the urgency o f the situation and has pleaded donors’ assistance for the sector. Starting in 2005, the Bank financed the technical assessment o f the Port o f Monrovia, the Roberts International Airport in Monrovia as wel l as assessment o f two o f the main road corridors in the country (Infrastructure TA, TFLIB-funded). The studies identified emergency works and developed bidding documents that have been shared with donors. Given
23
the capital intensity o f the sector, few donors have yet pledged funds for large-scale transportation projects.
17 The roads sub-sector i s mentioned briefly in this document as it i s subject o f a US$30.0 mi l l ion IDA pre-arrears clearance grant - the Emergency Infrastructure Rehabilitation Project. The railway sub-sector i s expected to be picked up by private investors when and if the mining sector takes up again. Marine transport and c iv i l aviation are central to sustain and expand economic activities in Liberia and as such - a top Governmental pnon ty In addition, marine transport and c iv i l aviation i n k n g e o n issues o f safety, security, and stability in a country s t i l l charactenzed as a fragile post-conflict enwronment. These are further discussed below
3.1 Ground transportation
18. Railways. The railways have been non-operational for nearly 20 years. The railway network in Libena was constructed by the mining companies to transport i ron ore f rom the n o w closed i ron ore mines at Mano River (Grand Cape Mount County), Bong Town (Bong County), and the Gahnpa-Yekepa area (Nimba County) to the ports o f Monrovia and Buchanan. The total length o f the network was about 500 km. The last mine closed soon after the war started in 1986. Since then tracks were lef t unattended.
19 Some recent developments involv lng MITTAL Steel and the potential opening o f i ron ore deposits upcountry suggest that the company may be interested in rehabilitating the Yekepe- Buchanan-link and also in the revitalizing the facilities at the port o f Buchanan.
20. Roads. The Government has identified the need for efficient road connections between Monrovia and the rest o f the country as central to achieving i t s reconstruction msion. The Bank has been responsive to this GOL’s pr ionty and i s currently prepanng an emergency project aimed to rehabilitate two main road corridors: Monrowa-Buchanan and Monrovia-Ganta. These actions will help revive the economy and reintegrate the country by restonng vi ta l transport links throughout the country
3.2 Maritime sub-sector
21. Libena has f ive ports, including Monrovia, Buchanan, Greenville, Harper and Robertsport. Before the war these ports handled about 200,000 tons o f general cargo and around 400,000 tons o f petroleum products per year. In addition, Monrovia and Buchanan handled al l the bulk i ron ore exports, and Buchanan and Greenville were responsible for most o f the timber exports.
22. Civil war and international sanctions severely disrupted port operations whi le extensive looting rendered most o f the facilities useless. Today, nearly 100% o f the dry-bulk and containers trade i s being handled through the Port o f Monrovia. In addition, i t s fuel jetty i s responsible for 100% o f fuel (diesel and kerosene) imports. The other ports are barely operational with trans- shipment activities between Monrovia and the four smaller ports - negligible.
23. Given the above volumes, the Port o f Monrovia i s the supply line/economic life-line o f Libena, responsible for nearly al l imports and exports f rom the country A large exporter o f timber, rubber, i ron ore, and agricultural products in the past, Liberia’s economy today i s mostly import-based. The pnmary food for the population i s imported nce. I t s price, as wel l as that o f fuel, i s directly correlated to port accessibility and efficiency The availability and price-stability o f imported commodities infringes o n stability in a country where fluctuation o f rice-pnces fueled two o f the c iv i l wars. Unsurpnsingly, the needs assessment for Libena, developed jo in t ly by
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U N D P and the Wor ld Bank prioritized the reinstatement o f operations in the Port o f Monrovia as a most critical activity in the sector.
24, Physical infrastructure at the port i s in a generally deplorable state. Collapse o f critical infrastructure and superstructure o f the port i s imminent. The physical layout o f the port i s unsuitable for modem port operations. These operations are further hampered by the unavailability o f equipment, in both number and quality, and the general lack o f maintenance of said equipment. The organization i s far f rom efficient and i s not productively organized, but a newly appointed Managing Director i s intent on improvlng NPA performance.
25. In preparation o f the proposed project and as part o f the TFLIB-supported Infrastructure TA, the Bank financed the technical assessment o f the Port o f Monrovla with the a im of identifying emergency works and actions to bring operations to acceptable levels. The assessment concluded that immediate intervention i s needed to rehabilitate the infrastructure in order to keep the Port operational. Identif ied emergency works are in the range o f US$40 mill ion, o f which this project proposes to support critical repairs costed at about US$7.0 mi l l ion. A longer-term Port Master Plan including an assessment o f the different management options to support long term sustainability has been developed for review and discussion with the Government.
26. In April 2005, UNMIL secured the port and since then i s responsible for the providing on-site secunty Today security at the port i s providedjoint ly by UNMIL and the Libena National Police (LNP).
3.3 Civil Aviation
27 Roberts International Airport (RIA), about 45 km outside Monrovia, i s the only international airport in the country and the only airport open for f ixed wing traffic. James Spriggs Payne located within Monrovia’s c i ty boundanes as wel l as several other functioning airports are operated by and used only for UN flights to transport UN personnel and equipment. All other domestic c iv i l aviation ceased dunng the years o f stnfe.
28. Before the war, L ibena had one operational international airline, L ibena Airways. However, i t has since been closed and i t s assets sold off. At present, air traffic i s sparse with only one international airline and three infrequent West Afhcan carriers servicing Libena.
29 During the war penod the airport suffered severe damage to the point that operations had to be suspended for several years. The runway became inoperable due to craters and other damage as a result o f bombings. The terminal building was burned down. F rom 1998 to 2002 rehabilitation works were undertaken under a grant donated by the Republic o f China or Taiwan in which the runway pavement surface was repaired, new navigational equipment installed and three fire trucks were delivered.
30. In 2003 fol lowing the CPA, UNMIL secured RIA and stationed a large troop contingent at the airport premises. Today, security at RIA continues to be the full responsibility o f UNMIL. A Standard Operating Procedures (SOP) document for RIA was drafted by UNMIL and approved in 2004. Throughout this period, UNMIL has been implementing l imi ted maintenance and rehabilitation works at the airport.
31. In 2005, the Bank financed f rom TFLIB the technical assessment o f RIA. It identified emergency works needed to ensure safety o f airport operations for US$3.6 mi l l ion (for works and goods, excluding supervision services cost, which i s estimated for another US$0.4 million). Of these, the most cntical portion costed at US$0.6 mi l l ion i s proposed for funding under this
25
project. A longer-term Master Plan for the development o f RIA, including institutional changes has been developed and submitted to the GOL for review and discussion.
3.4 Institutional Framework
32. The Ministry o f Transport is responsible for developing pol icy directions for the transport sector and as such i s responsible for the maritime and aviation sub-sectors as well. Currently, the Ministry has l itt le capacity to implement this responsibility Dunng the war the Ministry lost i t s data and documentation to perform i t s duties. I t s offices have been completely looted and there i s n o equipment left. The Ministry i s in dire need o f a l l lund of basic office equipment, vehicles, and training for i t s staff.
33. Presently, there i s n o National Transportation Plan or other holistic strategy for the development o f the sector. Whi le not-envisaged in the proposed emergency project, technical assistance for a longer-term institutional reform o f the transport sector i s much needed.
34. During the transitional period, the NTGL and the transitional management o f NPA, reviewed the structure o f the port and adopted in pnnciple the notion o f a landlord port model. However, with the new and representative Government coming in place, and new and professional management at NPA, this strategy needs to be reviewed and vetted.
35. The Ministry o f Public Works i s responsible for execution o f publ ic ly funded c iv i l works. Some core capacity and resources exist within the organization and the Emergency Infrastructure Project (EIP) n o w under implementation, jo int ly with this Project, i s building targeted fiduciary capacity through a Special Implementation Unit (SIU) to be hosted by the Ministry and a Project Financial Management Unit (PFMU) at the Ministry o f Finance. The use o f these two uni ts, as wel l as the assistance provided by international financial controllers through the GEMAP framework, will help ensure the proper use o f resources associated with both infrastructure projects.
36. The National Port Authonty (NPA) has been assigned to manage al l Liberia ports. The NPA i s an incorporated SOE, required to provlde and maintain port facilities and derive i t s main revenue f rom marine service, storage and handling charges. NPA’s management i s overseen by an Executive Board appointed directly by the President.
37 NPA i s over-staffed with some 1,700 employees, whereas ports with similar traffic would need n o more than several hundred. The port i s a public port and most services are provided by the NPA, who i s the owner o f a l l facilities, infrastructure and superstructure. Having said this, i t was found out that several facilities have been leased out to pnvate third parties (such as warehouses and sheds), but the NPA never produced any hard evidence.
38. Management at RIA has been entrusted with an MD and Deputies whose work i s overseen by an Executive Board appointed by the President. In contrast to the NPA, RIA has not been incorporated and technically, i t i s a public, budgetary entity In reality, RIA functions as a SOE without a legal act establishing it as a corporation. Similar to the other Liberian SOEs, RIA i s overstaffed (392 employees).
39 In January 2006 a Civil Aviat ion Authonty (CAA) was established by l a w Under the Governance Reform Committee o f the NTGL, the c i v i l avlation l aw was drafted, which principally accommodated Yamoussoukro declaration and formed a legal framework to al low establishment of a single autonomous national airport authonty (covering local air stripes as
26
well), and independent c i v i l avlation agency in line with the I C A O recommendations. Airports legislation i s lagging in this regard.
40. Management practices at both the NPA and RIA are weak. Bo th entities were audited in 2004 as part o f a larger effort financed by the EC to establish a baseline for a follow-up institution strengthening effort at five revenue-generating SOEs. Findings concluded weak management, operational structures and systems, largely non-existent financial controls, and abundance o f nontransparent, largely corruptive practices.
41. T o react to this challenge, the Government decided to mandate a l l SOEs to consolidate their revenue collected in n o more than two escrow accounts (for L ibenan and foreign currencies) at a Libena commercial bank. In addition, both SOEs were included o n the GEMAP l i s t where internationally recruited financial controllers with binding co-signature authonty are being deployed for a penod o f one to two years wth the objective to improve financial management practices. The financial controllers have been tasked to design, establish, and monitor a system o f transparent financial management in order to secure revenue flows into the escrow accounts. The financial controllers are also responsible to revlew and s ign on al l expenditure vouchers that should not exceed approved SOE budgets. In cases o f financial irregularities or disputes, the financial controllers are mandated to submit the issue for review and resolution with one o f the GEMAP bodies - the Technical Team or the EGSC. This stnngent control mechanism has been introduced in order to strengthen fiduciary practices while also build capacity at both SOEs.
42. In addition to the financial controller, the NPA will benefit f rom a port operations specialist for a period o f one to two years. The port specialist will review current operational practices including tan f f and fee structures, the NPA organigram and corresponding staffing levels, port security issues. The port specialist will work with the NPA and the Bank (TA provided under this project) to develop the strategic framework for the sector and draft a plan for corporate reorganization. B o t h the financial controllers and the port operations expert are financed by USAID.
3.5 GOL Sector Strategy
43. Repair o f cntical infrastructure at the port and the airport was declared a top pr ionty o f the new Government because o f i t s direct impact o n safety (airport), stability and long-term peace (port). In addition, by improving operational efficiency and financial transparency, the GOL aims to increase public revenues and fight corruptive practices. F o l l o w n g the lifting o f the UN sanctions on diamonds and timber, the Port o f Monrovia i s expected to become a key gate for trade export.
3.6 Response of the International Community
44. Investment needs in Libena are enormous, span across al l sectors, and reach tens o f mill ions o f dollars. The two largest international donors - the U S and the EC, who are collectively responsible for close to 70% o f pledged funds in the transitional period, are active in the social and utility sectors. The Bank, o n the other side, has been leading the dialogue with the Government in the transport sector. In partnership with the Bank, the USAID has funded the financial controllers and the port operations specialist at the two SOEs, whi le UNMIL provides security at both the airport and the port. Recently, potential interest was also signaled by the U S to invest additional funds at the Port o f Monrovla. The Bank team has initiated discussions with U S officials on possible US-funded investments and will pursue this possibility throughout project preparatiordimplementation.
27
45. The volume o f required investments to rehabilitate transport infrastructure and achieve tangible results have made it diff icult for smaller donors to engage in the sector. As a result, rehabilitation o f the transport infrastructure o n a large scale, beyond the funds provided in the proposed project, with the goal o f producing quality transport corndors vital to sustained economic development and trade facilitation has yet to be undertaken.
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Annex 2: Results Framework and Monitoring LIBERIA INFRASTRUCTURE REHABILITATION PROJECT
Results Framework
PDO
Provide Government with emergency support t o restore pr ior i ty infrastructure in the Port o f Monrov ia and at Roberts International A q o r t and assist the Government in developmg medium term strategic framework for efficient and productive port and aviation sectors
Intermediate Results One per Component
Component One: Infrastructure Rehabilitation. Rehabilitate selected and pnorit ized infrastructure
Outcome Indicators
Continued, safe and reliable service provision v ia the target mftastructure:
i) Access to the Port o f Monrov ia is preserved: vessels with 10.5 m draft o r less can enter po r t
ii) Oil je t ty strengthened, fully operational and safe with vessel discharging capacity o f up to 30,000 dwt
iii) Firefighting capacity at the Port o f Monrov ia established.
iv) Eff icient and reliable containers handling service: Mimmum 10 moves per hour and 10 days dwel l t ime o r less
v) Minimum ICAO air navigation safety international standards: met
Strategic por t and aviation framework formulated
Results Indicators for Each Component
Port: i) The por t entrance and basin are brought to the requued depth for the vessels call ing without r isk o f grounding: channel width o f 150m; channel depth o f CD - 1 lm
ii) The import o f the basic fuel categories (heavy oil, gas oil, gasoline and je t fuel) i s taking place under safe and secure conditions: o i l je t ty structure refurbished mcluding construction o f new off-load station, moonng dolphns, w a 1 k w a y s
Use of Outcome Information
Restoration o f crit ical mfrastructure wil l indicate success in supporting GOL’s top pnor i ty to remstate assets destroyed during the war, ensure continued and reliable f l ow o f goods to Liberia, and support safety and security m the country
The development o f sub-sector framework strategies wil l indicate transition f r o m post-conflict t o longer-term development onented envuonment
Use of Results Monitoring
~~ ~
Reviews o f results targets wil l provide complimentary mformation on: overall por t handling costs; preparedness o f the private sector to undertake a n s k and mvest in the post-conflict environment o f Liberia; examne longer term effect o n insurance risks and p remums
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Component Two: Technical Assistance and Capacity Building
Long-term vision for the operation and development o f the two sectors and SOEs - developed and discussed
Strengthen capacity at M P W and bo th SOEs
Component Three: Project Management
iii) Capacity to combat large fires restored
iv) Contamer t e m a l contract ln place: Average annual crane productivity o f 10 teushour and 10 days dwel l t ime or less
A q o r t : v) Al r f ie ld Ground Lighting (AGL) for runway and taxiway 111 place and Instrumental Landing System (ILS) for mstrumental and precision approach i s fully calibrated and operational
Improved t e c h c a l capacity by a core o f S I U M P W , NPA and RIA semor staff and understanding o f prlncipal Bank policies and procedures
Government decision o n strategic direction and reform o f por t and aviation sectors
Fully staffed and operational S K J at MPW and PFMU at MoF
The S I U manages L I R P activities in conformance with legal and fiduciary requlrernents, as stated in the Grant Agreement
The results m a y b e used as a proxy in assessing the GOL’s readiness to liberalize traditionally publ ic services and deal with related issues o f down- s m n g o f SOEs, reorgamzation and security reforms
2. The Technical Assessment Report o f Emergency and Longer Term Actions required in the Port o f Monrovia l is ts some 25 different projects identified through detailed discussions and workshops with the National Port Authonty (NPA) and stakeholders. Emergency works were categonzed in terms o f pnor i ty as: Cntical, Highest Priority and High Prionty
3. projects will be tendered.
On the basis o f the available budget, it was consequently decided that the fo l lowing
A l . Monrovia Port: DredPing (US$2.20 million).
4. F rom a navigational safety point o f v iew it i s necessary to maintain an entrance channel width o f 150 m with an 11 meter draft. Based o n bathymetric survey results, this requirement i s not met by far as the channel width i s less than lOOm at that draft. The dredging quantities associated wth this navigational requirement are in the order o f 500,000 m3, including dredging o f part o f the port basin. As any obstruction o f the entrance channel due to stranding o f a vessel might directly impact the supply line o f Libena, dredging operations were given the highest pr ior i ty A soil survey was carned out in the entire area to be dredged. Analysis o f the samples concluded that the material to be dredged i s not polluted, and consequently, that there i s n o principal objection to dump the spoil at sea, o f course while paying attention to possible marine environmental implications (such as coral reefs, spawning grounds o f intensely used, n c h fishing grounds. Currently, the intention i s to dump the spoil in approximately 30 m deep water, which i s at some 3-4 nautical miles f rom the port. The Liberian Environmental Protection Agency (EPA) has been requested to formulate an expert opinion o f the proposed dumping site and methodology Pumping the spoil to shore was considered but rejected, because o f cost implications.
5. The refined products jetty, which i s the only functioning one in the country, has technically detenorated to a degree that i t forms a severe risk to the country’s fuel supply Furthermore n o fire fighting installation o n the refined products jetty i s available, increasing n s k s even further. Within the Port o f Monrovra there are n o fire fighting alternatives.
6. The o i l jet ty will be structurally upgraded, pipes replaced (until landfall) and adequate safety measures introduced. There i s an informal agreement with the Libena Petroleum and Refinery Corporation (LPRC) to replace the o i l pipes f rom jet ty landfall to their tank farm, and to co-ordinate these works with those o f the jetty
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7 Collapse o f the jetty would place the country’s fuel supply in great danger and a disrupted fuel supply would among other things, stop food supply and distribution, UNMIL actiwties, power generation and water supply
A3. Monrovia Port: Prowding Fire Fighting Capacity at NPA Yard (US$2.15 million).
8. The chances o f fire in the port are relatively high. The effects o f a large scale fire in the port would be disastrous to the countries food supply and export (rubber). At the moment there i s n o fire engine in the port, the fire hydrant system i s not functioning, there i s n o water supply and there i s n o trained NPA fire bngade.
9 yard i s made functional again and the NPA fire brigade adequately equipped and trained.
I t i s therefore o f great importance that minimally the fire water supply system to the NPA
10. The works will prowde for the design, supply, delivery, handling, installation, commissioning, testing and setting to works o f needed equipment for acceptable firefighting capabilities at NPA yard.
A4. Roberts International Aimort : Navigational, aeronautical, meteorological and security eauipment (US$0.60 million).
11. As a result o f the prioritized assessment, the most urgently needed emergency interventions and actions were categorized into 5 prioritized groups in order to arrive at a manageable implementation o f the required emergency works. The total cost o f the interventions/actions i s estimated at about US$4.0 mi l l ion (US$3.6 mi l l ion for goods and works, and US$0.4 mil. for supervision services) as shown in the fol lowing table (5 bid packages are listed as per the priontization order).
Emergency Works Estm. cost Note
~~
Supply and installation o f navigational, aeronautical, meteorological and security equipment 0.5 Refurbishment o f RIA R&FF trucks ambulance etc 0.6
Supply o f materials for airside and repairs airport 0.1
Incl. in LIRP
First choice for financing if bid savings realized in agreed LIRP package
Not addressed ~~
Supply and maintenance o f airport equipment 1.8 Not addressed
Improvements o f utilities (incl. supply o f power 0.3 Not addressed generators) Contingency (1 0%) 0.3
Sub-Total 3.6
Supervision c o s t s ( l 0 % ) 0.4
TOTAL 4.0
12. LIRP will fund the top pnor i ty package No . 1 (supply and installation o f navigational, aeronautical, meteorological and security equipment) only, leawng the possibility o f selecting other packages, if any additional funds are identified or any savings are realized due to
33
uncertainties in costing o f these activities. If there are savlngs realized in bids received, the first additional RIA pr ionty wil l be financing o f additional fire fighting abil ity
Item Contents and Description Estimated No. cost (US$) 1.1 AVAIDS: Supply o f Earthmg & Lightning Protection 5,000
1.2 AGL 45,000 DVOR (ELP) system, including spares
R W Y edge lights TWY edge lights
Supply o f RWY light fittings, bulbs and colored lenses, mcl. spares. Supply o f blue TWY edge retro-reflective markers, incl. spares
1.3 Provision for For DVOR. ILS/DME and PAP1 04 40.000 Cal ibrat iof l l ight Check
Meteorological Equipment
Execution by ASECNA - liaison with C A A only.
1.4 Aeronautical & Supply, installation, c o m s s i o n m g & testing 170,000 - one voice recorder m ATC Tower; - one Automatic Weather Observation Station (AWOS)
- two new generation X-ray machines for hand & hold luggage screenmg;
- two walk-through metal detector gates; - spares for the above. Remove X-ray machme in Departures &
1.5 Security Equipment Supply, installation, c o m s s i o n m g & testing 200,000
reinstate in Cargo area. 1.6 Aircraft Liabi l i ty 40,000
13. The RIA currently has n o 3rd party liabilitylaircraft insurance, which i s a matter of absolute pnor i ty for RIA to address. However, a sustained coverage o f the 3rd party liability/aircraft insurance i s imperative. Without which, the Bank will not be in a position to al low further procurementlactivities for RIA’S benefit.
14. Provision o f selective and ad-hoc technical assistance to Government, including support to develop a strategic framework for the sub-sectors, as wel l as targeted training in NPA and RIA to complement normalization o f operations. The project will assist NPA in bnnging about a container terminalhandling concession and will support NPA for tendenng a marine or towage semce contract i f required.
15. Overall implementation responsibility will be by the Ministry o f Public Works through a Special Implementation Unit (SW) being set up and which will provlde coordination,
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procurement, M&E and support to safeguard management. Financial Management will be under the auspices o f the Ministry o f Finance, through a Project Financial Management Unit (PFMU), also in the process o f being set up. These arrangements are arranged jo in t ly with a separate project, the Emergency Infrastructure Project (EIP), which will be implemented in parallel with this Project. The S I U and PMFU will be staffed with a combination o f competent MPW staff and selected technical assistance.
16. In addition to the core fiduciary competencies, the S I U for the purpose o f this Project will be strengthened with a port engineer and an environmental engineer o n retainer, as wel l as other specialist support as may become needed.
Cost estimates of civil works and tentative approach in case of insufficient funds
17 I t i s mentioned in the main text o f this PAD that a significant uncertainty exists about the cost estimates, as these are based o n Rough-Order-Magnitude (ROM) approach which has relatively large margin o f error (approximately 30-35%). Technical review o f the port works to be funded will take place dunng implementation, as these will be procured on the basis o f design- install/construct. Similarly, once bids come in it will be evaluated whether a l l proposed activities fit within the fixed funding envelope for this Project.
18. Dredging and rehabilitation o f the o i l jet ty c iv i l works are o f a nature that does not al low any scaling down o f inputs to cut costs. Effectively, to achieve the minimal draft and safety through dredging, and to ensure a functioning o i l jetty, these works need to take place in their entirety Similar situation applies to the airport works. The identified equipment and their installation i s a minimal requirement to meet ICAO standards.
19 The equipment and c i v i l works related to container park fire fighting, however, can be scaled down and s t i l l achieve some improvement in fire fighting capacity at the port. Therefore, in case o f overall c i v i l work costs being higher than n o w anticipated, this work will be scaled down - or in extreme case, cut - to fit the budget.
35
Annex 4: Project Costs
LIBERIA INFRASTRUCTURE REHABILITATION PROJECT
Total Foreign US$ Local
US$ mil l ion U S $ mil l ion million Project Cost By Component
1. The LIRP will be implemented jo int ly under the identical arrangements agreed on for the Emergency Infrastructure Project. T h i s entails the setup o f a Special Implementation Unit (SIU) in the Ministry o f Public Works, and a Project Financial Management Unit (PFMU) in the Ministry o f Finance.
2. to September 30,2010.
Project implementation penod: The project will be implemented from December 1, 2006
A. Capacity of Government to Implement the Project
3. Capacity o f the Government to implement a project o f this magnitude i s weak at this stage. The new Government i s committed to better performance and transparency and endorsed the A c t creating the Public Procurement Commission. This A c t was drafted under the Bank’s TFLIB-project and closely follows the Bank’s own Procurement Guidelines. Government has further agreed on the implementation arrangements for the project to compensate for the current weaknesses and to strengthen i t s capacity to implement future projects. These are described below
B. Project Implementation and Management Structure
4. Project oversight: A Steering Committee, chaired by the Deputy Minister responsible for Technical Services o f the MPW, and consisting o f a maximum o f seven members including, amongst others, representatives o f the Infrastructure and Basic Services Pillar, MOF, MOT, Ministry o f Planning, L E C and the LWSC, will be responsible for overall project oversight and pol icy guidance.
5. Additionally, for the purposes o f LIRP specifically, a Steenng Group, chaired by Minister o f Public Works, will be activated o n an ad-hoc basis if discussion among different entities o f the Government i s needed for addressing pol icy issues in the port and aviation subsector. The ad-hoc meetings will be called by the chairman at the request o f the Ministry o f Transport, or the heads o f NPA or RIA.
6. Project management: Given the urgent nature o f the project, the short time frame for implementation and the l imited capacity o f Government, the fo l lowing institutional arrangements have been agreed to ensure that funds disburse quickly with manageable implementation nsks, objectives are reached and absolute transparency i s maintained.
7 Government decided to centralize the financial management tasks associated with donor projects in one Project Financial Management Unit (PFMU) in the Ministry o f Finance. This project and EIP will be the f i rst two Bank projects to support this planned initiative. The Special Implementation Unit (SIU) wil l be set up in such a way that, the relevant financial management responsibilities are established in the PFMU.
8. MPW will implement the Project through the creation o f the S I U and staffed with a combination o f competent MPW staff and selected technical assistance. The SIU, managed by a competent full-time project coordinator/unit manager (a high level senior Government of f ic ia l to be appointed or a project management specialist to be recruited), with qualifications and expenence acceptable to the Bank, will include as key staff; Financial Management Specialist,
37
Procurement Specialist and, o n an as and when required basis, both an Enmronmental Expert and a Transport Economist. Engineers f rom the road and water sectors, will also be recruited to the S I U for the purposes o f the EIP For LIRP, S l U may secure the services o f a port engineer and an environmental engineer on retainer for port specific c iv i l works.
9 The S I U will have basic financial management capacity to support the requirements o f the PFMU that will be responsible for a l l financial management tasks. Coordination between the S I U and the PFMU will be based o n a Memorandum o f Understanding, signed between the MPW and the MOF, defining the responsibilities o f and levels o f service required from both parties. The PFMU will have a unit manager with international accounting qualifications acceptable to the Bank, project accountant and an internal auditor.
10. The coordinator will have direct communication with the Team Leader and will be responsible for day-to-day management o f the project. The S I U will have an appropnate sk i l l s mix, including technical, project management, fiduciary as wel l as environmental and safeguard sk i l ls to carry out i t s functions. In particular, the S I U will be responsible for: a) asswng steady progress o f the procurement in accordance with annual work plans and accompanying remewed and approved by the Wor ld Bank, b) ensuring satisfactory implementation o f activities included in al l contracts, c) ensunng that a high ethical standard and transparency i s maintained throughout the entire project implementation, d) prepanng the quarterly in tenm un-audited financial reports (IFR), and e) monitoring and evaluating performance indicators and results.
11. The MPW has not been functioning as a proper Ministry for many years and the S I U would be used to assist with re-establishing the functions in the MPW Also, Government has structured itself into four basic pillars to manage service delivery The MPW, as chair o f the Infi-astructure and Basic Services Pillar, intends to build o n the capacity developed by the SIU, to extend its capacity to implement projects across a l l sectors under this pillar.
12. For the S I U the immediate steps prior to effectiveness include the appointment o f the project coordinator and a procurement specialist who will manage the in i t ia l start-up tasks and the in i t ia l procurement activities. These S I U members could be appointed either f rom existing staff o f Government or as consultants and will have qualifications and experience satisfactory to the Bank.
13. For the PFMU the immediate steps pr ior to effectiveness would be to appoint an accountant who, assisted by the Bank-supported technical assistance in the MOF, wil l be responsible for the init ial financial management tasks.
14. The remainder o f the staff for both the S I U and the PFMU should be in place within 6 months after effectiveness. This will ensure that these units are fully operational by then. These appointments will serve as a condition o f disbursement. Government will achieve this by appointing the fol lowing staff to the SIU; Financial Management Specialist, Procurement Specialist and Envlronmental Specialist, and to the PFMU; unit manager and an internal auditor. These staff shall a l l have qualifications and expenence acceptable to the Bank.
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Annex 6: Financial Management and Disbursement Arrangements
LIBERIA INFRASTRUCTURE REHABILITATION PROJECT
Introduction
1. The financial management assessment was carned out in accordance wlth the Financial Management Practices Manual issued by the Financial Management Board o n 3 November 2005, The objective o f the assessment was to determine whether the implementing entities have acceptable financial management arrangements, which will ensure: (1) the funds are used only for the intended purposes in an efficient and economical way; (2) the preparation o f accurate, reliable and timely periodic financial reports; and (3) safeguard the entity’s assets.
2. The financial management assessment was carned out by the Bank financial management team and included in temew with key staff (including financial comptroller) at the Ministry o f Public Works. Our assessment also draws o n earlier work carned out under Economic Management and Development Program for Liberia.
Overview of Program and Implementation Arrangements
3. The main development objective o f the project i s t o provide Government o f Liberia with emergency support to restore pnon ty infrastructure in the Port o f Monrovia, the Roberts International Airport and assist the Government in developing medium term strategic framework for efficient and productive port and aviation sectors. The Bank’s support wil l be provided through three main components, namely- i) Infrastructure Rehabilitation; this will involve the rehabilitation and upgrading o f the Monrovia Port through the dredging, upgrading o f the o i l jetty and provision o f firefighting capacity to the Monrovia port. I t will also provide navigational, aeronautical, meteorological and security equipment, including earthing and lighting protection system, runway and taxiway edge lighting for the Roberts International Airport; ii) Technical and Capacity Building; this will support the Government o f L ibena to develop strategic framework for the sub-sectors, as wel l as provide targeted training in NPA and RIA to complement normalization o f operations; and iii) Project Management; this will prowde support t o the overall management o f the project and complement efforts f rom the Emergency Infrastructure Project to ensure effective project implementation.
4. The overall project arrangement wil l benefit f rom the arrangements put in place for the Emergency infrastructure Project (EIP). Similarly oversight will be provided by a project steenng committee, chaired by the Ministry o f Public Works and with membership including representatives f rom Infrastructure and Basic Services Pillars, MOT, L W S C and MOF The MPW has weak capacity and as a result will implement the Project through the creation o f a Special Implementation Unit (SIU) staffed with a combination o f competent MPW staff and selected technical assistance. The S I U will support with re-establishing key funcbons, including financial management, procurement and contract management functions, in the MPW and Government. Due to the weak capacity o f finance staff in the l ine ministries and the need to ensure an effective and efficient management o f resources, i t i s proposed that a Project Financial Management Unit be created in the Ministry o f Finance to manage Bank funds in Libena. The PFMU will be staffed with competent financial professionals (specialists) wlth the required expenence and qualifications acceptable to IDA. The financial specialists or team wil l be responsible for the day to day management o f project finances, prepare project financial procedures manual, including the required intenm un-audited financial statements and put in
39
place adequate arrangements for the auditing o f the project financial statements at the end o f each fiscal year.
Country Accountability Issues
5. The Bank has not yet carned out a Country Financial Accountability Assessment (CFAA) or E S W in the area o f financial management for Liberia and may not do so in the next 2 years. I t i s therefore not possible to detail out the overall country issues. However, since Libena i s emerging f rom 15 years o f c i v i l war, it i s only right to assume the non-existence o f adequate financial management systems for the country as wel l as agencies that would be involved in project management.
6. control.
Summary of Risk Analysis
The nsk analysis and the mitigation measures are l imited to the nsk within the project’s
Inherent Risk Country Level Country will not have adequate PFM systems dunng the l i fe o f the project .
N o Country wide FM diagnostic E S W will be carned out during the implementation period o f the project.
The country may not have adequately qualified FM professionals.
Entity Level Entity Management may polit ically interfere with project f i i a i c i a l management controls.
Overall Inherent Risks: Control Risk: Ministry of Public Works: Staffing:
a) The Ministry does not have a full complement o f required accounting staff.
b) Any accounting staff at post may not have expenence in Wor ld Bank FM and disbursement procedures.
c) The Government salanes
Risk Rating
S
S
M
S
S
M
M
Risk Mit igat ion Measure
Special arrangements will be put in place to ensure that Bank funds are safeguarded f rom ineffectwe country svstems. Reliance will not be placed o n country or public systems unless additional special arrangements are developed to ensure that project funds will be safeguarded. Competitive recruitment will be extended to the international and sub- regional market to ensure that the right caliber o f Drofessional staff i s recruited.
Strong and independent project financial management unit (PFMU) will be created.
Project will support the establishment o f a PFMU with competent staff.
Project resources will be made available for the recruitment o f qualified accounting staff for the PFMU. Qualifications and experience will be set out clearly in the TOR for the Dositions.
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may not be adequate to recruit the required competent staff immediatelv
Internal Control Procedures:
a) The Ministry has not documented any o f FM procedures in a manual.
b) FM policies may not be adequate and may not even be in place.
override any existing controls.
c) That management may
Fund Flows
a) Project may not submit withdrawal applications o n timely basis, thereby causing possible implementation delays.
Internal Audit (IA)
The MPW has no functioning IA unit. The Special Implementation Unit may not establish an IA as part o f i t s operations.
External Audit
The audited financial statements o f the project will be submitted late.
Information Systems
A computerized accounting system may not be implemented in a satisfactory manner. Overall Control Risk.
M
S
M
M
S
PFMU staff will train available Government staff to improve their capacity dunng project implementation.
Project will require that FM procedures, with adequate internal controls, and Memorandum o f Understanding to be signed between the SW and the PFMU are documented in a manual which will be cleared by the Wor ld Bank.
The creation o f the independent Project Financial Management Unit (PFMU) with qualified financial staff with specific j o b descriptions will minimize any control override that may occur under the projects.
Frequent Bank oversight and penodic external reviews will be instituted.
Accounts staff o f PFMU and S I U performance will include a measure of the timeliness o f the submission o f withdrawal applications.
The financial procedures and policies put in place will ensure adequate internal checks to address any weaknesses that the absence o f an IA i s l ikelv to create.
The selection o f independent auditors would be completed pnor to the end o f the first fiscal year.
The PFMU will implement such a system within six month after their engagement or establishment.
Strengths and Weaknesses
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Strengths 7 There i s a strong commitment by the Ministry of Finance and the MPW to support the implementation of the project. The implementing agency, which wil l be a Special Implementation Unit (SW) as wel l as the establishment o f the P F M U within the MOF will ensure effective project management. The staff for these units will be competitively selected in accordance with agreed TOR satisfactory to IDA. This will ensure speedy and timely implementation o f projects. The PFMU will establish and maintain at a l l times appropnate financial management systems and practices that will meet the World Bank FM requirements.
Weaknesses 8. As in other post confl ict countries, the overall fiduciary enwronment in Libena i s very weak. The accounting staff at the Ministry o f Finance (MOF) and MPW has n o expenence with Wor ld Bank financial and disbursement procedures. The PFMU will in the long run be required to build FM capacity within the l ine Ministnes including MOF and MPW Successful implementation o f this project will require ownership and active support f rom Governmental authorities and less of interference. This i s the greatest challenge that this project will face.
FM Staffing for the Project
9 The weak financial management capacity at the MPW as wel l as several Ministnes in Libena, and to build capacity at the vanous Ministries will be a long term objective. However to ensure efficient, effective and timely project financial management semces for the Liberia Emergency Infrastructure Project and the Liberia Infrastructure Rehabilitation Project it i s proposed that a Project Financial Management Unit (PFMU) created in the Ministry o f finance o f L ibena i s made responsible for the day to day financial management o f the projects. The Ministry o f Finance will ensure that 3 finance staff, with qualifications and expenence that are satisfactory to World Bank are recruited to man this unit. The PFMU will be supported to put in place adequate financial management systems that meet the Bank’s minimum FM requirements. The staff will be trained in Wor ld Bank disbursement procedures, to enable them manage the resources o f Bank funded projects in Liberia. Depending upon experience the responsibility o f this unit could, at a later stage be expanded to cover other donor funded projects.
Project Financial Management
10. The Project Financial Management Unit (PFMU) created in the Ministry o f finance o f L ibena will be responsible for the day to day financial management o f the 2 infrastructure projects. The PFMU i s headed by a qualified accountant with expenence in public financial management and expenence acceptable to IDA. It will establish an effective accounting system that provides for adequate segregation o f functions, capable o f recording a l l accounting transactions, and reporting correctly a l l assets and liabilities o f the project. The system should also be capable o f producing accurate periodic financial reports including interim un-audited financial reports (IFR) and annual project financial statements.
11. The project will adopt the cash basis in the treatment and recording o f a l l transactions. In addition, the project will maintain a statement o f liabilities outstanding at a l l times to correctly reflect the projects indebtedness to suppliers and third parties. The financial management system should be documented in a financial accounting procedures manual which must be cleared by the Wor ld Bank.
Budgeting Arrangements 12. The project wil l prepare an annual budget for the project based upon the agreed program to be financed by the project. Mos t o f the activities o f the key components are already known and
42
these will be included in the project annual budgets. The annual project budget will be reviewed and agreed with the Wor ld Bank, and N o objections will be issued for only activities agreed in the budget.
Flow of Funds Arrangements 13, The project arrangements are such that there will be n o implementing entities at any decentralized position and the PFMU will therefore operate a centralized funds management system for the project. All requests for payment wil l be sent to the Accountant for processing and payments. Where the single payment i s above a defined threshold it will be processed and sent to Washington for direct payment to the third party There will be a requirement for the PFMU to submit withdrawal applications in respect o f the project to the Wor ld Bank o n monthly basis. This will ensure the project has hnds for operations at a l l times.
Auditing Arrangements
14. Independent and qualified auditors, acceptable to the Bank, would be selected to carry out the audit o f the project. The selection o f auditors shall be o n competitive basis and in accordance with the Bank’s guidelines and would be in place six months after the effectiveness o f the project or o n an agreeable date after effectiveness.
15. The project financial statements including movements in the designated accounts will be audited in accordance with International Standards o f Auditing (ISA) and a single opinion will be issued to cover the project financial statements, SOEs and the designated account, in accordance with the Bank’s new audit pol icy
16. The auditors’ report and opinion in respect o f the financial statements including the management letter would be furnished to the Wor ld Bank within six months o f the close o f each fiscal year.
Reporting and Monitoring
17 The project will prepare quarterly project in tenm un-audited financial reports or statements (IFR) in the areas o f finance, procurement, including complaints f rom bidders, and project progress. The financial management system put in place should be capable o f producing these reports. The reports are:
18. The Quarterly Financial Reports: which would consist o f a statement o f cash receipts by sources and expenditures by main expenditure classifications for the penod and cumulatively; cash balances o f the project; and supporting schedules companng actual and budgeted expenditures;
19 Quarterly Physical Progress Report: include a narrative information and output indicators, linking financial information with physical progress and report on issues that require attention;
20. Quarterly Procurement Management Report: would consist o f information o n procurement for goods and works and that for consultants’ services and compliance with agreed procurement methods. The report compares procurement performance against the plan agreed at negotiations and appropriately updated at the end o f each quarter. The report should also provide any information on complaints by bidders, unsatisfactory performance by contractors and any contractual disputes.
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2 1. The PFMU o f the MOF will be responsible for prepanng the financial reports required as part o f the in tenm un-audited financial reports required to be produced under the project. These financial reports will be submitted to the S I U for consolidation and submit copies to the Bank within 45 days o f the end o f each quarter. The content and format o f these reports will be agreed upon 2 months after the full establishment o f the PFMU.
Disbursement Category
(a) Consultant Semces
(b) Training
(c) Goods
(d) Works
(e) Operating Costs
Disbursement Arrangements
Amount of the Percentage of Financing Allocated Expenditures to be (expressed in US$ M) Financed
1.4 100%
0.04 100%
0.15 100%
6.70 100%
0.17 100%
22. The proceeds o f the grant would be disbursed over a three-year penod. A period o f four (4) months after the closing date, as agreed with IDA, would be allowed to make disbursements for expenditures incurred until the closing date o f the grant.
Total
Summarized Disbursement Table
8.50
Use o f Statement of Expenditures (SOEs)
23, Disbursements for a l l expenditures would be against full documentation, except for items o f expenditures under contracts and purchase orders below US$200,000 equivalent each, for works, below US$ 100,000 equivalent each, for goods, below US$50,000 equivalent each for consulting f irms, and US$lO,OOO each for consultant services (individuals), training and incremental costs for which disbursements would be based on statement o f expenditures (SOEs). Supporting documentation for SOEs would be retained by the PFMU for rewew by IDA missions and external auditors
Designated Account (DA)
24. The Grant Designated Account (DA) o f the project will be managed by the PFMU o f the MOF The grant DA can only be opened and operated after the full establishment o f the PFMU. The designated account for the project funds will be maintained in U S Dollars and opened at commercial bank, under terms and conditions satisfactory to the IDA. Upon grant effectiveness, a sum o f US$850,000 would be deposited by the Bank into the grant DA when the PFMU i s fully established. Further deposits would be made into this account against withdrawal applications supported by appropriate documentation.
Conditions So Far:
44
25. the EIP.
The fol lowing actions are to be implemented as specified; these are the same as those for
4.
5’
6.
(Effectiveness condition) Signing o f MOU between MOF and MPW o n relationship between S I U and PFMU.
unit manager and internal auditor appointed. (Condition o f disbursement) Preparation o f Financial Management Procedures Manual for the project. Installation o f integrated accounting software, including data testing. The software will be an o f f the shelf package customized for the projects being managed by the PFMU
L) I Agree o n formats o f IFRs to be prepared
7
under the project PFMU fully staffed and established with
J .
Recruitment o f Project Auditors
By Whom
MOF
MOF
MOFMPW
MOF
Unit Manager PFMU/ Coordinator S I U
Unit Manager PFMU
Unit Manager PFMU
By When
Prior to effectiveness
Within 6 months o f achievlng effectiveness
Within 2 months o f achieving effectiveness
Within 6 months after effectiveness
Within 6 months o f achieving effectiveness
Within 6 months o f achieving effectiveness
Within 9 months o f achievine; effectiveness
Supervision Plan
26. During the f i rst year o f the project implementation, intensive W o r l d Bank supervision will be required in order to ensure that the project financial management arrangements are in place and functioning. The f i rst supemsion mission after effectiveness wil l take the form o f an FM Specialist visiting MPW to review systems and operations introduced by the PFMU o f the MOF There will be a minimum o f two supervision missions per year. There will be other FM missions if the situation demands it.
Conclusion of FM Assessment
27 The financial management assessment has concluded that the n s k for the project i s Substantial and actions have been put in place to ensure that the identified nsks are adequately mitigated. The engagement o f a professionally qualified accountant as part o f the establishment o f the PFMU within the MOF, the requirement for the establishment o f systems and procedures by the PFMU as part o f their assignment, and the agreed auditing arrangements for the project will ensure that the project r i sks are minimized. This will also require intensive Bank supervision in the first year o f project implementation to ensure that introduced systems by the PFMU are functioning wel l and that al l agreed actions have been fully implemented.
1. Procurement o f goods and works and selection o f consultants would be carried out in accordance with the Wor ld Bank’s “Guidelines: Procurement under IBRD Loans and IDA Credits” dated M a y 2004; and “Guidelines: Selection and Employment o f Consultants by Wor ld Bank Borrowers” dated M a y 2004, and the provlsions stipulated in the Legal Agreement or any other method accepted by the Bank The vanous items under different expenditure categones to be financed are described below For each contract to be financed by the Grant, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, pno r review requirements, and time frame are agreed between the Government and the Bank project team in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity
2. Procurement of Works: A total o f about US$6.70 mi l l ion o f works would be procured under this project. These would include: (a) Dredging o f the Freeport o f Liberia; (ii) Refurbishment o f the Oil Jetty; (iii) the Provision o f Fire-Fighting Capacity for the National Port Authonty (NPA) yard; and (iv) the Supply and Installation o f nawgational, aeronautical, meteorological and security equipment at the Roberts International Airport. The procurement will be done using the Bank’s Standard Bidding Documents (SBD) for a l l ICB and for a l l others National SBDs agreed with or satisfactory to the Bank. Contracts below US$200,000 but above US$50,000 equivalent per contract will be procured under National Competitive Bidding. Contracts estimated to cost less than US$50,000 equivalent per contract would be procured using shopping procedures based o n a model request for quotations satisfactory to the Bank. Direct contracting may be used where necessary, but will be subject to Bank’s n o objection.
3, Procurement of Goods: A total o f about US$0.15 mi l l ion o f goods would be procured under this project. These would include: (a) procurement o f a vehicle, (b) computers, pnnters, U P S s , etc. (c) financial software, (d) heavy duty photocopier, and (e) office furniture and furnishing for the Financial Management and Special Implementation Units. The procurement will be done using the Bank’s SBD for a l l ICB and National SBD agreed with or satisfactory to the Bank. Contracts below US$200,000 but above US$50,000 equivalent per contract may be procured under National Competitive Bidding. Contracts estimated to cost less than US$50,000 equivalent per contract would be procured using shopping procedures based on a model request for quotations satisfactory to the Bank. Direct contracting may be used where necessary, subject to Bank’s n o objection.
4. Alternatively, goods may also be procured f rom UN Agencies (e.g. IAPSO - Inter- Agency Procurement Services Office) provided that such a contract does not exceed US$lOO,OOO for each type o f goods,
5. Selection o f Consultants: Consultancy semces valued at about US$1.65 M i l l i o n to be provided include project audits, works supervision, monitoring and evaluation, capacity building, project management and supemsion. Contracts for consulting semces, each estimated to cost US$lOO,OOO equivalent or more, will be awarded fol lowing the procedure o f Quality and Cost Based Selection (QCBS). Consulting services estimated to cost less than US$lOO,OOO per contract under this project would be procured fol lowing the procedures o f Selection Based o n Consultants’ Qualifications (CQS). For al l contracts to be awarded fol lowing QCBS and LCS the
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Bank’s Standard Request for Proposals will be used. Procedures o f Selection o f Indivldual Consultants (IC) would be followed for assignments which meet the requirements o f paragraph 5.1 and 5.3 o f the Consultant Guidelines. Least-Cost Selection (LCS) would be used for assignments for selecting the auditors Procedure o f Single-Source Selection (SSS) would be followed for assignments which meet the requirements o f paragraphs 3.10-3.12 o f the Consultant Guidelines and will always require the Bank’s pno r revlew regardless o f the amount.
6. Short l is ts o f consultants for services estimated to cost less than US$lOO,OOO equivalent per contract may be composed entirely o f national consultants in accordance with the provisions o f paragraph 2.7 o f the Consultant Guidelines.
7 Consultancy services estimated to cost above US$50,000 per contract for f irms, and contracts for individuals for assignments estimated to cost above US$lO,OOO and single source selection o f consultants ( f i rms and individuals) will be subject to prior review by the Bank.
8. consumables and equipment maintenance.
Operating Costs: This will cover such costs as communications, travel and per diem,
9 The procurement procedures and SBDs to be used for each procurement method, as wel l as model contracts for works and goods procured would be available for IDA revlew by effectiveness.
B. Assessment o f the Agency’s capacity to implement Procurement
10. An assessment o f the capacity o f the country to implement procurement actions was carried out by a Wor ld Bank team led by Mbuba Mbungu (Senior Procurement Specialist) in August 2004. The assessment reviewed to some extent the organizational structure for implementing projects and the interaction between the projects’ staff responsible for procurement and the Government’s relevant central unit for administration and finance.
11. Since January 2006, Libena has a new Procurement L a w that i s based o n the Bank’s procurement guidelines. The L a w l is ts procedures that need to be complied with. Namely, the Procuring Entity at the MPW has to be involved in the process o f procuring contracts. Contracts will be signed by the designated officials o f the M P W and beneficiary agencies, which will then be responsible for the management o f the contracts.
12. There i s l imi ted procurement capacity in the Ministry o f Public Works. T o mitigate this risk at the project implementation level, a Special Implementation Unit (SIU) will be created at the MPW to be staffed with a combination o f technical assistance and competent MPW staff. The S I U will have responsibilities in the areas o f project management, procurement, and financial management. I t s responsibilities will include: (a) assunng steady progress o f the procurement in accordance with an implementation schedule reviewed and approved by the Wor ld Bank; and (b) ensunng satisfactory implementation o f activities included in al l contracts.
13. At a minimum, the SIU must have a procurement specialist with engineering background to manageprocurement. The specialist will: (i) plan and process al l procurement; (ii) monitor the implementation o f the procurement plans; and (iii) train staff o f the implementing agencies in the use o f procurement procedures agreed under the project, including compliance with Wor ld Bank Procurement Guidelines. The Procurement Specialist w i l l need to be in place before Grant effectiveness.
14. The overall project nsk for procurement i s substantial.
47
C. Procurement Plan
15. The Government, at appraisal, drafted an 18 month procurement plan for project implementation which provldes the basis for the procurement methods. This plan will be agreed o n between the Government and the Project Team during negotiations and will be available at the Offices o f the S l U at the Ministry o f Public Works in Monrovia. I t will also be available in the project's database and in the Bank's external website. The Procurement Plan will be updated in agreement with the Project Team annually or as required to reflect the actual project implementation needs and improvements in institutional capacity
2.40 Refurbishment o f Oil Jetty
D. Frequency of Procurement Supervision
16. In addition to the pr ior revlew supemsion to be camed out f rom Bank offices, the capacity assessment o f the implementing Agency has recommended three to four supervision missions each year to visit the field to carry out revlew o f procurement actions.
I C B
E. 17
Details of the Procurement Arrangements Involving International Competition
Goods, Works, and N o n Consulting Services
Provision o f Fire-fighting facilities Supply and installation o f navigational, aeronautical, meteorological and secunty equipment
(a) List o f contract packages to be procured fol lowing ICB and direct contracting:
1.89 ICB
0.55 I C B
L- NPA Com-
ponent
RIA Com-
ponent
Contract Method
($Million)
1.86 I C B Dredging o f DOrt
- 5 P- Q
N o
No -
No -
N o
-
6 Domestic Preference (y es/no)
Yes
Yes
Yes
Yes
7 I s I
Dec. 1,
Dec. 22,
Prior
Prior
Dec. 22, "lor 1 2006 I
(b) ICB contracts estimated to cost above US$200,000 per contract and al l direct contracting will be subject to pr ior review by the Bank.
18. Consulting Services
(a) List o f consulting assignments with short-list o f international f i rms .
48
3 Estimated cost
4 5 6 Selection Review by Expected Proposals Method Bank (Prior submission Date
List o f International Individual Consultants (IC) for the PFMU and the S I U
NPA Component
1
($Million) /Post) Supervision 0.30 QCBS Dec. 20,2006 refwbishment Prior o f oil je t ty Supervision f ire fighting facilities
Ref No.
4 Selection Method
IC NPA Component
5 6 Review by Expected EO1 Bank (Prior submission Date /Post)
Prior Aug. 16,2006
RIA Component I C
2
Prior Aug. 16,2006
Description of Agreement
Supervision of Dredging Works
Project Financial
Management Unit (PFMU)
Supervision of
Installation o f Navigational, aeronautical, meteorological and secunty equipment
supply c!k
Financial Mgmt 0.36 I C Prior Aug. 16,2006 Specialist
0.24 I C Prior Aug. 16,2006 Project Accountant Project Internal 0.24 I C Prior Aug. 16,2006
3
Special Implement-
ation Unit (SIU)
Estimated cost ($Million)
Auditor Environment a1 Engineer Port Engineer
0.25 I C Prior Aug. 16,2006
0.14 I C Prior Aug. 16,2006
0.08
0.045
49
F. Prior Review 19 All contracts not subject to prior review will be post reviewed
>200,000
Thresholds, Procurement Methods and Prior Review Requirements
(US$ ) ICB All Contracts
- N o
-
1
>=50,000 - =<200,000
2
-
3
First 3 (three) Contracts N C B
G.
20.
<50,000
Expenditure Category
Shopping None Works
<50,000
All values
>= 100,000 f i r m s
<100,000 f i r m s <50.000 f i r m s
Goods and Services (other
than Consulting Services) Shopping None
All Contracts
QCBS All Contracts
CQS All Contracts cos None
Direct Contracting
Consulting Services
Contract Value Threshold
(US$)
Procurement Method
Contracts Subject to Prior Review
All values All Contracts I Direct Contracting I >200,000 ICB All Contracts
I I
>= 50,000 - =< 200,000 I NCB I First 3 (three) =<100,000 I UN Agencies (IAPSO) Contracts .
>=10,000 individuals < 10,000 individuals
I C I C
All Contracts None
I I
All Values I Single Source Selection I All Contracts
Procurement Audits and Contract Managementmxpenditure Reports
Annual procurement audits will be used to report on fiduciary compliance. Not later than three months after the end o f each financial year, the Coordination and-Monitoring Uni t will submit to the Bank a procurement audit report prepared by consultants selected in accordance with the guidelines for selection o f consultants and Terms o f Reference to be incorporated in the PIM. In addition, the Coordination and Monitonng Unit will prepare and submit to IDA on a quarterly basis contract management and expenditure information.
Findings and Recommendations of the Preliminary Environmental Impact Assessment (pEIA)
1. The pEIA identified the major issues and impacts associated with the emergency works and proposed any measures (mitigation, monitoring, institutional arrangements) required to limit any such impacts. If these measures are included in the construction specifications and contract for the works and if they are properly implemented, then it i s expected that a l l negative impacts associated wth the emergency works will be minor or As L o w As Reasonable Practicable (ALARP). A summary o f the impacts o f construction and dredging, the mitigation measures, and the residual significance o f the impacts that remain moderate or more severe after mitigation i s given in Table 8-1. M i n o r impacts are not shown in the table but are detailed in the pEIA. The pEIA also contains the corresponding information for operation and decommissioning o f the works. The details for those phases have not been included in this Annex, but the costs for the mitigation measures are included in Table 8-2 which summarizes estimated costs.
2. With respect to the “major” impact o f dredge spoil disposal, the potential impacts, their mitigation measures, and their residual severity will be examined in detail in the EA that the pEIA has called for the dredging operation. The quality o f the dredge spoil and the location o f the disposal site are key inputs to the more detailed analysis.
Institutional Arrangements for Environmental Management and Monitoring
3. The pEIA includes recommendations for implementation o f the EA recommendations:
Ministry of Planning and Economic Affairs
0
0
Major stakeholder in general environmental and development matters, Ma jo r holder o f enwonmental data.
Environmental Protection Agency
0
0
0
Review and approval o f the final EIA, Responsibility to task NPA to ensure implementation o f prescribed mitigation and monitoring programs, Provide expertise to NPA for implementation/ dissemination o f the mitigation and monitoring programs.
National Port Authorities (Employer)
T o ensure that there are sufficient resources (time, money and people) to manage the implementation o f the EMP,
0 Ensure bid documents include actions to address adverse impacts resulting f rom construction work, To ensure that the EMP reflects any changes during the construction process that may have a significant environmental or social impact,
0 Ensure deposition o f copies o f EMP to stakeholders, 0 Liaison with the environmental authonties.
51
Contractor
Ensure that there are sufficient resources (time, money and people) t o manage the environmental issues o f the works, B e responsible for e n s u n g that a l l site staff, including sub-contractors and sub-contracted activities will comply with the projects EMP, Ensure that any changes during the construction process that may have a significant environmental or social impact are communicated to the Supemsing Engineer in time and manage them accordingly,
a Ensure that the Environmental Supemsing Engineer i s sufficiently informed o n Contractor’s monitoring results, organizing the weekly work meetings.
Environmental Supervising Engineer (ESE)
4. I t i s advisable to contract out the environmental supervision o f the works to a third party, an Environmental Supervising Engineer (ESE), independent o f the Contractor. The ESE would preferably be an international expert since the works are complex and will probably be carried out by an International Contractor (or more than one). I t i s recommended that an international ESE i s involved part time during the works, together with two local Environmental Engineers.
a
Ensure that there are sufficient resources (time, money and people) to supemse the environmental issues o f the works, Ensure that any changes during the construction process that may have a significant environmental or social impact are communicated to NPA in time and advise o n actions to be taken and costs involved, Ensure that NPA i s sufficiently informed on monitoring results. a
Contractor performance monitoring
5. In order to ensure that the Contractor i s fully aware and prepared for the management o f health, safety, envlronmental and social (HSES) aspects o f his project, the Contractor(s) o f the works should be required to prepare an HSES Management Plan (HSES-MP) for the specific works to be executed under his contract. The Contractor’s HSES-MP wil l serve two main purposes:
a
0
For the Contractor, for internal purposes, to ensure that a l l measures are in place for adequate HSES management, and as an operational manual for his staff, For the Client, supported where necessary by a Supemsing Engineer (SE), to ensure that the Contractor i s fully prepared for the adequate management o f the HSES aspects o f the project, and as a basis for monitonng o f the Contractor’s HSES performance.
6. The Contractor’s HSES-MP should be reviewed and approved by the Client before start o f the works. This review should demonstrate that the Contractor’s HSES-MP covers al l o f the identified impacts, and has defined appropnate measures to counteract any potential impacts. The Contractor’s HSES-MP should provide:
a
a
An overview o f the HSES aspects and impacts related to construction works, Relevant Liberian legislation and Liberian and WB standards to which the Contractor will comply, including the way in which he will monitor such compliance, specifying: Standards against which the monitonng will be set (national and WB),
52
Which parameters and limits will be monitored, Frequency at which monitoring will be undertaken, A clear definition o f specific mitigation measures that are intended to be implemented in order to minimize the impacts, The internal organizational, management and reporting mechanisms put in place for such.
Institutional capacity and training of NPA
7 NPA does not have sufficient capacity in terms o f numbers o f trained environmental s ta f f to carry out the EMP Training needs o f relevant NPA staff (to be assigned) and local consultants, who will be involved in the emergency works, and more specifically in the execution o f the EMP, should be identified. The fol lowing type o f knowledge should be available at NPA.
General knowledge o n environmental and social management for selected NPA staff involved in the emergency works, Specific HSES knowledge for staff who will undertake regular monitonng o f the Contractors o f the works to ensure compliance wlth the EMP
8. I t i s recommended that the different training components are organized by a third party who i s fdly acquainted wth internahonal environmental management practices and relevant WB and EPA guidelines. The estimated cost o f training i s included in Table 8-2.
Cost estimates
9 Costs estimates and sources o f funds for init ial investment and recurrent expenses for implementing a l l measures contained in the EMP, should be integrated into the total project costs by the Client. Table 8-2 presents cost estimates o f key cost for planning and implementation of mitigation measures as defined in this EMP. Estimates are provided only for measures that are outside o f the scope o f general good construction practices, 1.e. where specific endeavors, incumng additional costs, are expected.
53
3 e 5 m k 0
e e e o e e e o
I 1 %
e, 4
G f
b e , ~ P o o o o 0 0 0 0 0 0 0 0 0 0 0 (
g z
r
" 0
Lr
2
0 0
C c
o o g E $ 2 4
- L 0
i3
Table 8-2a: Cost estimates (in US$) for planning and implementation of mitigation measures (including monitoring) specific to activity group
Budget component TrainingKapacity building General Envlronmental
Specific HSES Environmental Supervising Engineers team (1 international part t ime and 2 nationals for 0.5 year) TOTAL
Table 8-2b: Cost estimates (in US$) of capacity building and technical assistance for EMP implementation.
Cost estimate 20,000 20,000 150,000
1 mnnn
Conclusion
10. This pEIA identified the major issues and impacts associated with the emergency works and proposed any measures (mitigation, monitoring, institutional arrangements) required to limit any such impacts.
11. If these measures are included in the construction specifications and contract for the works and if they are properly implemented, then it i s expected that al l negative impacts associated with the emergency works will be minor or As Low As Reasonable Practicable (ALARP) .
12. Next to that, the pEIA has identified the need for further investigation o f project alternatives where i t concerns the dredging. The quality o f the dredge spoil and the disposal options (location o f the dumpsite, re-use-etc) for spoil are key in this.
13. service i s not yet fully functioning as i t i s under development.
Furthermore, an early opening o f discussion with the EPA i s recommended since this
58
Annex 9: Preparation and Supervision LIBERIA INFRASTRUCTURE REHABILITATION PROJECT
Planned Actual PAD review May 9,2006 Initial PID to PIC May 30,2006 Initial ISDS to PIC May 30,2006 Appraisal May 19,2006 RVP approval November 10,2006 Planned date o f effectiveness December 1 , 2006 Planned date o f mid-tern review November 30,2007 Planned closing date September 30,2010
Key institutions responsible for preparation of the Project: Ministry o f Public Works, Ministry o f Finance, Ministry o f Transport, National Port Authonty, Roberts International Airport Agency
Bank staff and consultants who worked on the Project included:
Name Title Unit
Anthony Mensa-Bonsu Procurement Specialist AFTPS Cornelius Kruk Ferdinand Tsn Apronti Frederick Yankey Gylfi Palsson Kremena Ionkova Luigi Giovine Mbuba Mbungu Muthoni Kaniaru Parminder Brar Paul K n s s Sophie Hans-Moevi Thomas Walton Wiebe Moes
Anne Njuguna Team Assistant AFTTR
Sr. Port Specialist Procurement Specialist
Senior Financial Management Specialist Sr. Transport Specialist, TTL
Operations Officer Senior Country Officer
Senior Procurement Specialist Counsel
Lead Financial Management Specialist Sr. EconomistKluster Leader
Bank funds expended to date on project preparation: 1. Bank resources: Approximately US$25,000 2. Trust funds: Approximately US$75,000 Estimated Approval and Supervision costs: 1. Remaining costs to approval: US$25,000 2. Estimated annual supervision cost: US$lOO,OOO
59
1.
2.
3.
4.
5
6.
7 . 8.
9.
10.
11.
12.
13.
Annex 10: Documents in the Project File LIBERIA INFRASTRUCTURE REHABILIT-ATION PROJECT
Detailed Assessment of Emergency and Longer-term Actions required to Re- establish Efficient Port Operations in the Port o f Monrovia - January 3 1 , 2006 (Royal Haskoning) Emergency Works Report - March 2006 (NACO Airport Consultants/Steward
Assessment o f Emergency Repairs and Feasibility and Design Studies for Urban Supply, Sanitation, Storm-water Drainage and Solid Waste Management in Libena - February 2006 Telecommunication Law and Licensing Reform Presentation to Stakeholders - June 24,2005 (McCarthy T6trault) Report o f the Underwater Inspection at the Freetown o f Monrovia, Liberia - The Oi l Jetty - June-July 2005 (Royal Haskoning) Pavement Assessment - November 2005 (NACO Airport Consultants/Steward
Environmental Scan o f the Port o f Monrovia - July 2005 (Royal Haskoning) Draft Airport Master Plan Report - September 2005 (NACO Airport Consultants/S teward Scott) Detailed Assessment o f Emergency and Longer-term Actions required to Re- establish Efficient Port Operatlons Draft Master Plan Report - August 3 1,2005 (Royal Haskoning) Inception Report: Robert International Airport - July 2005 (NACO Airport Consultants/Steward Scott) Spectrum Pncing and Fees: Telecommunication Sector Reform Project - June 29, 2005 (Mclean Foster Co.) National Telecommunication Policy and Strategy: Final Sector Policy Document -June 29, 2005 (Hellerstein & Associates) IMO. Needs Assessment Advisory Mission on Mantime Security- Libena - November 28 - December 3,2004 (International Mantime Organization)
Scott)
Scott)
60
Annex 11 : Countrv at a Glance
Liberia a t a dance 911 4/06
Key Development Indicators
(2005)
Population, mid-year (millions) Surface area (thousand sq. km) Population growth (%) Urban population (% of total population)
GNI (Atlas method, US$ billions) GNI per capita (Atlas method, US$) GNI per capita (PPP, international $)
GDP growth (%) GDP per capita growth (%)
(most recent estimate, 200CL2005)
Poverty headcount ratio at $1 a day (PPP, %) Poverty headcount ratio at $2 a day (PPP, %) Life expectancy at birth (years) Infant mortality (per 1,000 live births) Child malnutrition (% of children under 5)
Adult literacy, male (% of ages 15 and older) Adult literacy, female (% of ages 15 and older) Gross primary enrollment, male (% of age group) Gross primary enrollment, female (% of age group)
Access to an improved water source (% of population) Access to improved sanitation facilities (% of population)
Liberia
3.3 111 1.3 58
0.4 130
5.3 3.9
42 157 27
115 83
61 27
Sub- Saharan
Africa
74 I 24,265
2.1 35
552 745
1,981
5.3 3.1
44 75 46
100 29
99 87
56 37
Low income
2,353 29,265
1.8 30
1,364 580
2,486
7.5 5.6
59 80 39
73 50
110 99
75 38
Net Aid Flows
(US$ millions) Net ODA and official aid Top 3 donors (in 2004):
Note: Figures in italics are for years other than those specified. 2005 data are preliminary estimates. .. indicates data are not available. a. Aid data are for 2004.
Development Economics, Development Data Group (DECDG).
Page 2 of 3
Liberia
Political stability
Regulatory quaiity
Rule of law
Balance of Payments and Trade
(US$ millions) Total merchandise exports (fob) Total merchandise imports (cif) Net trade in goods and services
Workers' remittances and compensation of employees (receipts)
Current amount balance as a % of GDP
Reserves, including gold
Central Government Finance
(% of GDP) Revenue
Expense
Cash surpluddeficit
Highest marginal tax rate (%)
Tax revenue
Individual Corporate
External Debt and Resource Flows
(US$ millions) Total debt outstanding and disbursed Total debt service HiPC and MDRl debt relief (expected; flow)
Total debt (% of GDP) Total debt service (% of exports)
Foreign direct investment (net inflows) Portfolio equity (net inflows)
I , I
2000
120 182 -25
-131 -23.3
2
2,032 1 -
362.2 0.6
21 0
2005
41 142
-205
-118 -21.4
10
2,706 1 -
544.6 0.6
20 0
Cornpooltlon of total external debt, 2004
IBRO, 152, IDA, 111
ShorMerm 1181
I Private, 207
US$ millions
Private Sector Development
Time required to start a business (days) Cost to start a business (% of GNI per capita) Time required to register property (days)
Ranked as a major constraint to business (% of managers surveyed who agreed)
n.a. n.a.
Stock market capitalization (% of GDP) Bank branches (per 100,000 people)
Paved roads (% of total) Fixed line and mobile phone
High technology exports subscribers (per 1,000 people)
(% of manufactured exports)
6.2
3
Environment
Agricultural land (% of land area) 27 27 Forest area (% of land area, 2000 and 2005) 35.9 32.7 Nationally protected areas (% of land area) 1.7
Freshwater resources per capita (cu. meters) .. 61,717 Freshwater withdrawal (% of internal resources) . . 0.1
C02 emissions per capita (mt) 0.13 0.74
GDP per unit of energy use (2000 PPP $ per kg of oil equivalent)
Energy use per capita (kg of oil equivalent)
(US$ millions)
IBRD Total debt outstanding and disbursed Disbursements Principal repayments Interest payments
IDA Total debt outstanding and disbursed Disbursements Total debt service
130 146 0 0 0 0 0 0
100 106 0 0 0 0
IFC (fiscal year) Total disbursed and outstanding portfolio 4 I
of which IFC own account 4 1 Disbursements for IFC own account 4 0 Portfolio sales, prepayments and
repayments for IFC own account 0 1
Gross exposure - - New guarantees - -
MlGA
'H4
Note: Figures in italics are for years other than those specified. 2005 data are preliminary estimates. .. indicates data are not available. -indicates observation is not applicable.
811 2/06
Development Economics, Development Data Group (DECDG)
MAP SECTION
Wologiz
i Rang
e W
onogizi
Mts
.
Nimba M
ts.
Mt. WuteveMt. Wuteve(1,380 m)(1,380 m)
L O FAL O FA
B O M IB O M I
M A R G I B IM A R G I B I
B O N GB O N GN I M B AN I M B A
G R A N DG R A N DB A S S AB A S S A
R I V E R C E S SR I V E R C E S SG R A N D G E D E HG R A N D G E D E H
S I N O ES I N O E
G R A N DG R A N DK R UK R U
MA RY L A
ND
GRANDGRANDCAPECAPE
MOUNTMOUNTBoBo
GelahunGelahun
VahunVahun
KolahunKolahun
KlayKlay
TototaTototaZienzuZienzu
GabalatuaiGabalatuai
PalalaPalala
BotataBotata
YopieYopie
YekepaYekepa
KahnpleKahnple
TapetaTapeta
GuataGuata
TradeTradeTownTown
GongleeGonglee
PynePyne
Kola TownKola TownPoabliPoabli
BabuBabu
KopoKopo
TawlokehnTawlokehn
PliboPlibo
NyaakeNyaake
JuazohnJuazohn
PelokehnPelokehn
KahnwiaKahnwia
TawakeTawake
BokoaBokoa
HartfordHartford GaamodebiGaamodebi
GahnpaGahnpa
SagleipieSagleipie
GloieGloie
TobliTobli
ZorzorZorzor
HarbelHarbel
KatkataKatkataCareysburgCareysburg
Bong TownBong TownTubmanburgTubmanburg
BopoluBopoluGbarngaGbarnga
ZwedruZwedru
BarclayvilleBarclayville
SaniquellieSaniquellie
VoinjamaVoinjama
S I E R R AS I E R R AL E O N EL E O N E
G U I N E AG U I N E A
C Ô T EC Ô T ED ’ I V O I R ED ’ I V O I R E
L O FA
B O M I
MONTSERRADO
M A R G I B I
B O N GN I M B A
G R A N DB A S S A
R I V E R C E S SG R A N D G E D E H
S I N O E
G R A N DK R U
MA RY L A
ND
GRANDCAPE
MOUNT
Kongo
Bo
Gelahun
Vahun
Kolahun
Klay
TototaZienzu
Gabalatuai
Palala
Botata
Yopie
Yekepa
Kahnple
Tapeta
Guata
TradeTown
Gonglee
Pyne
Kola TownPoabli
Babu
Nana Kru
Kopo
Tawlokehn
Plibo
Nyaake
Juazohn
Pelokehn
Kahnwia
Tawake
Sasstown
Grand Cess
Bokoa
Sehnkwehn
Hartford Gaamodebi
Gahnpa
Sagleipie
Gloie
Tobli
Zorzor
Harbel
KatkataCareysburg
Bong TownTubmanburg
BopoluGbarnga
Buchanan
River Cess
Greenville
Zwedru
Barclayville
Harper
Saniquellie
Robertsport
Voinjama
MONROVIA
S I E R R AL E O N E
G U I N E A
C Ô T ED ’ I V O I R E
Dube
Cestos
St. Joh
n
St. Paul
Nia
nda
Via
Loffa
Gbeya
Nuon
ATLANTIC OCEAN
To Buedu
To Irié
To Nzérékoré
To Lola
To Danané
To Toulépleu
To Tabou
To Zimmi
To Kenema
To Pendembu
Wologiz
i Rang
e W
onogizi
Mts
.
Nimba M
ts.
Mt. Wuteve(1,380 m)
11°W 10°W 9°W 8°W
10°W 9°W 8°W
5°N
6°N
7°N
8°N
9°N
4°N
5°N
6°N
7°N
8°N
9°N
LIBERIA
This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other informationshown on this map do not imply, on the part of The World BankGroup, any judgment on the legal status of any territory, or anyendorsement or acceptance of such boundaries.
