Document of The World Bank Report No: ICR2504 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-41170 IDA-44900) ON A CREDIT IN THE AMOUNT OF (SDR24.0 MILLION) (US$35.0 MILLION EQUIVALENT) AND AN ADDITIONAL FINANCING CREDIT IN THE AMOUNT OF (SDR24.3 MILLION) (US$40.0 MILLION EQUIVALENT) TO THE REPUBLIC OF BENIN FOR A SECOND DECENTRALIZED CITY MANAGEMENT PROJECT IN SUPPORT OF THE SECOND PHASE OF THE DECENTRALIZED CITY MANAGEMENT PROGRAM December 27, 2012 Water and Urban II Cote d’Ivoire, Burkina Faso, Benin, and Togo Country Department Africa Region CURRENCY EQUIVALENTS (Exchange Rate Effective December 1, 2012 Currency Unit = FCFA FCFA 1.00 = US$ 0.00 US$ 1.00 = 504 FCFA FISCAL YEAR ABBREVIATIONS AND ACRONYMS ABE Agence Béninoise de l’Environnement AFD Agence Française de Développement AGETUR Agence d’Exécution de Travaux Urbains APL Adaptable Program Loan CAS Country Assistance Strategy CISCO Comité Interministériel de Suivi, de Coordination et d’Orientation CISU Community Initiative Support Unit Cosuco Comité de Suivi, de Coordination et d’Orientation DCM Decentralized City Management IDA International Development Agency MAP Multi-sectoral Aids Program MCPD Ministère Charge de la Planification et du Développement MEHU Ministère de l’Environnement, de l’Habitat et de l’Urbanisme MFE Ministère des Finances et de l’Economie MISD Ministère de l’Intérieur, de la Sécurité et de la Décentralisation NDC Neighborhood Development Committee NGO Non-Governmental Organization PAD Project Appraisal Document PPF Project Preparation Facility QAG Quality Assurance Group QSA Quality of Supervision Assessment RPF Resettlement Policy Framework SERHAU Société d’Etudes Régionales d’Habitat et d’Aménagement Urbain SMEs Small and Medium Enterprises Vice President: Makhtar Diop Country Director: Madani M. Tall Sector Manager: Alexander Bakalian Project Team Leader: Kwabena Amankwah-Ayeh ICR Team Leader: Kwabena Amankwah-Ayeh ii REPUBLIC OF BENIN Second Decentralized City Management CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design ............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 6 3. Assessment of Outcomes .......................................................................................... 11 4. Assessment of Risk to Development Outcome......................................................... 17 5. Assessment of Bank and Borrower Performance ..................................................... 18 6. Lessons Learned ....................................................................................................... 20 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners .......... 21 Annex 1. Project Costs and Financing .......................................................................... 22 Annex 2. Outputs by Component ................................................................................. 24 Annex 3. Economic and Financial Analysis ................................................................. 38 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............ 49 Annex 5. Summary of Borrower's ICR and/or Comments on Draft ICR ..................... 51 Annex 6. List of Supporting Documents ...................................................................... 59 MAP…………………………………………………………………………………...60 iii DATASHEET A. Basic Information Second Decentralized Country: Benin Project Name: City Management Project ID: P082725, P109209 (AF) L/C/TF Number(s): IDA-41170,IDA-44900 ICR Date: 12/27/2012 ICR Type: Core ICR Lending Instrument: APL Borrower: GOVERNMENT Original Total XDR 24.00M Disbursed Amount: XDR 48.15M Commitment: Revised Amount: XDR 48.30M Environmental Category: B Implementing Agencies: Société d’Etudes Régionales d’Habitat et d’Aménagement Urbain (SERHAU SA) 32-34 rue 390 (route de Lomé). BP 2338. Cotonou, Bénin. Tel: 229 30 02 09. Fax: 229 30 06 26. Email: serhau@intnet.bj Agence d’Exécution des Travaux Urbains (AGETUR) 01 BP 2780, Recette Principale, Cotonou, Benin Tel: 229 31 36 45. Fax: 229 61 21 66. Email: agetur@intnet.bj Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 04/13/2004 Effectiveness: 03/08/2006 03/08/2006 09/12/2008 01/28/2010 06/22/2010 Appraisal: 05/24/2005 Restructuring(s): 07/08/2011 03/28/2012 06/28/2012 Approval: 09/12/2005 Mid-term Review: 11/10/2008 11/10/2008 Closing: 06/30/2010 06/29/2012 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Moderate Bank Performance: Satisfactory Borrower Performance: Satisfactory iv C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Satisfactory Government: Moderately Satisfactory Implementing Quality of Supervision: Satisfactory Satisfactory Agency/Agencies: Overall Bank Overall Borrower Satisfactory Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments (if Indicators Rating Performance any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any time Quality of Supervision No None (Yes/No): (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as a percentage of total Bank financing) Flood protection 70 Other social services 7 Solid waste management 15 Subnational government administration 16 Urban Transport 31 30 Wastewater Collection and Transportation 31 Theme Code (as a percentage of total Bank financing) Decentralization 13 Municipal governance and institution building 24 Participation and civic engagement 13 Pollution management and environmental health 25 Urban services and housing for the poor 25 100 E. Bank Staff Positions At ICR At Approval Vice President: Makhtar Diop Gobind T. Nankani Country Director: Madani M. Tall A. David Craig Sector Manager: Alexander E. Bakalian Eustache Ouayoro Project Team Leader: Kwabena Amankwah-Ayeh Franck Bousquet v ICR Team Leader: Kwabena Amankwah-Ayeh ICR Primary Author: Salim Rouhana Fadi Doumani Marie-Adele Tchakounte Sitchet F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The development objective of the second phase of the APL is to increase access to infrastructure and basic services for residents of Benin's primary cities (Cotonou, Porto-Novo and Parkaou) and selected secondary cities (Abomey-Calavi, Lokossa and Kandi). Revised Project Development Objectives (as approved by original approving authority) The Project Development Objective was not revisited as it remained relevant throughout the project implementation. (a) PDO Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Growth in municipalities’ own revenues with report to baseline 2004 ( in percent) Indicator 1 : (CFA millions) Value Cotonou (2003-2004: 11 quantitative or 40 Not revised 56 percent): 903 Qualitative) Porto-Novo (2003-2004: 13 Not revised 40 165 percent): 168 Parakou (2003-2004: 13 Not revised 40 48 percent): 176 Abomey-Calavi (Average Not revised 2001-2004: 47 percent): 205 20 215 Lokossa (Average 2001- Not revised 20 190 2004: 53 percent): 55 Kandi (Average 2001-2004: Not revised 20 68 78 percent): 62 Date achieved 01/05/2004 08/22/2005 05/21/2008 06/29/2012 Comments (incl. percentage achievement) Indicator 2 : Additional population getting access to primary and secondary paved roads Value quantitative or 0 230,000 336,000 417,000 Qualitative) vi Date achieved 01/05/2004 08/22/2005 05/21/2008 06/29/2012 Comments (incl. percentage End of project target surpassed. achievement) Indicator 3 : Additional population protected from periodic flooding Value quantitative or 0 38,000 114,000 232,000 Qualitative) Date achieved 01/05/2004 08/22/2005 05/21/2008 06/29/2012 Comments (incl. percentage End-of-project target exceeded. achievement) Indicator 4 : Number of operational NDCs. Value quantitative or 0 10 Not revised 14 Qualitative) Date achieved 01/05/2004 08/22/2005 05/21/2008 06/29/2012 Comments (incl. percentage End-of-project target exceeded. achievement) Quantity of municipal waste collected in Porto-Novo and transported out of the City (as Indicator 5 : a percentage of the total quantity generated) Value quantitative or 25 percent 65 Not revised 71 Qualitative) Date achieved 01/05/2004 08/22/2005 05/21/2008 06/29/2012 Comments (incl. percentage achievement) (b) Intermediate Outcome Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised Target approval Completion or Values documents) Target Years Component one Indicator 1 : Billed tax collection rate (percentage of billed taxes recovered) Value Cotonou: 81 (average (quantitative 75 Not revised 82 2001-2004: 75 percent) or Qualitative) Porto-Novo: 52 65 Not revised 66 Parakou: 64 65 Not revised 65 Abomey-Calavi: 51 65 Not revised 70 Lokossa: 19 60 Not revised 65 Kandi: 92 (average 2001- 65 Not revised 68 2004: 68 percent) Date achieved 01/05/2004 08/22/2005 05/21/2008 06/29/2012 Comments vii (incl. percentage achievement) Share of municipalities’ recurrent costs, budgets allocated and spent on infrastructure Indicator 2 : and basic services, i.e. all recurrent costs by administrative operating expenses (as a percentage of total expenditure) Value (quantitative Cotonou: 80 80 Not revised 82 or Qualitative) Porto-Novo: 73 75 Not revised 76 Parakou: 73 75 Not revised 78 Abomey-Calavi: 38 60 Not revised 62.57 Lokossa: 57 75 Not revised 82.50 Kandi: 35 60 Not revised 62.67 Date achieved 01/05/2004 08/22/2005 05/21/2008 06/29/2012 Comments (incl. percentage achievement) Share of municipalities’ recurrent costs, budgets allocated and spent on routine road Indicator 3 : maintenance (as a percentage of total expenditure) Value (quantitative Cotonou: 20 25-30 Not revised 26 or Qualitative) Porto-Novo: 27 25-30 Not revised 27 Parakou: 29 25-30 Not revised 29 Abomey-Calavi: 17 20-25 Not revised 44 Lokossa: 14 15-20 Not revised 25 Kandi: 5 15-20 Not revised 20 Date achieved 01/05/2004 08/22/2005 05/21/2008 06/29/2012 Comments (incl. percentage achievement) Technical and administrative management procedures manual developed and in use in Indicator 4 : the three primary cities Value (quantitative 0 3 Not revised 3 or Qualitative) Date achieved 01/05/2004 08/22/2005 05/21/2008 06/29/2012 Comments (incl. percentage Cotonou, Porto-Novo and Parakou achievement) Indicator 5 : Periodic budget reports generated by the municipalities Value (quantitative 3 6 Not revised 6 or Qualitative) Date achieved 01/05/2004 08/22/2005 05/21/2008 06/29/2012 Comments (incl. percentage achievement) viii Solid waste management guidelines for Benin’s cities, agreeable to IDA, defined and Indicator 6 : adopted by MEHU Value (quantitative 0 1 Not revised 1 or Qualitative) Date achieved 01/05/2004 08/22/2005 05/21/2008 06/29/2012 Comments (incl. percentage achievement) Component Two Indicator 1 : Km of rehabilitated urban roads Value (quantitative 0 22 31.6 33.9 or Qualitative) Date achieved 01/05/2004 08/22/2005 05/21/2008 06/29/2012 Comments (incl. percentage achievement) Indicator 2 : Km of drainage built Value (quantitative 0 4 14.8 17.4 or Qualitative) Date achieved 01/05/2004 08/22/2005 05/21/2008 06/29/2012 Comments (incl. percentage Target exceeded achievement) Component Three Indicator 1: Number of micro-projects (subcomponent 3b) implemented and functional 11 minimum Value demand driven- 9 (quantitative 0 figures to be revised Not revised or Qualitative) at Mid-Term Review Date achieved 01/05/2004 08/22/2005 05/21/2008 06/29/2012 Overall, the project provided basic services through implementation of infrastructure micro projects including: construction for communities in beneficiary cities - 52 toilet units (23 promised in the Project Paper-PP); 23 classrooms (12 promised in PP); two markets (two promised in PP); and 14 community development organizations supported and mainstreamed into the services provision systems for participating communities. Comments For the Takon community whose land was officially acquired for the construction of the (incl. percentage landfill, the following basic services were provided: (i) a three-classroom block for the achievement) local school; (ii) a clinic; (iii) eight toilets at both the school and the clinic; (iv) community center for entertainment; (v) mini water supply complete with borehole; (vi) water tank and network of pipes to supply water to the homes of the villagers; (vii) an access road that would link the villagers to the main trunk road (about 4.5 km long) and; (vii) electricity supply to the village. Indicator 2 : Number of cities with an operational CISU Value 0 6 Not revised 6 (quantitative ix or Qualitative) Date achieved 01/05/2004 08/22/2005 05/21/2008 06/29/2012 Comments (incl. percentage achievement) Component Four Study on solid waste management in Porto-Novo carried out. Solid waste management Indicator 1: plan and financing plan, agreeable to IDA, endorsed by local and central authorities Value (quantitative 0 1 Not revised 1 or Qualitative) Date achieved 01/05/2004 08/22/2005 05/21/2008 06/29/2012 Comments (incl. percentage achievement) Solid waste management unit in place and operational in the municipality of Porto- Indicator 2 : Novo Value (quantitative 0 1 Not revised 1 or Qualitative) Date achieved 01/05/2004 08/22/2005 05/21/2008 06/29/2012 Comments (incl. % achievement) G. Ratings of Project Performance in ISRs Date ISR Actual Disbursements No. DO IP Archived (USD millions) 1 12/01/2005 Satisfactory Satisfactory 0.00 2 05/12/2006 Satisfactory Satisfactory 0.29 3 10/20/2006 Satisfactory Satisfactory 2.39 4 04/12/2007 Satisfactory Satisfactory 8.94 5 10/04/2007 Satisfactory Satisfactory 12.14 6 03/25/2008 Satisfactory Satisfactory 18.68 7 09/25/2008 Satisfactory Satisfactory 22.18 8 03/25/2009 Satisfactory Satisfactory 24.99 9 11/30/2009 Moderately Satisfactory Moderately Satisfactory 37.31 10 06/01/2010 Moderately Satisfactory Moderately Satisfactory 52.40 11 03/27/2011 Satisfactory Satisfactory 63.74 12 11/02/2011 Satisfactory Satisfactory 71.81 13 07/09/2012 Satisfactory Satisfactory 71.90 x H. Restructuring (if any) ISR Ratings at Amount Board Restructuring Restructuring Disbursed at Reason for Restructuring & Key Approved PDO Date(s) Restructuring Changes Made Change DO IP in USD millions Approval of additional financing to scale up activities under component B of the original 09/12/2008 N S S 22.18 project and to cover cost overrun. Project closing date extended from June 30, 2010 to December 31, 2010. Reallocation of credit funds under the original project (Credit No. 01/28/2010 MS MS 37.67 411-BEN) to reflect actual expenses and expected expenses before the project closing date. Extension of project closing date from December 31, 2010 to March 31, 2012 to enable completion of 06/22/2010 MS MS 52.68 works on the landfill at Porto- Novo (Takon site) and all outstanding works on the additional financing. Reallocation of credit funds under the additional financing (Credit No. 4490-BJ) to enable the Government of Benin to smoothly complete ongoing works on different sites and also to start the 07/08/2011 S S 64.27 pavement and drainage works on two new roads in Cotonou, particularly the road to Abomey- Calavi which was previously under the original credit (Credit No. 4117-BEN) but was put on hold due to insufficient funds. Extension of project closing date from March 31, 2012 to June 29, 2012 to ensure that the 03/28/2012 S S 71.81 Government will find the shortfall amount of US$0.315 million equivalent (counterpart fund) and pay it to the project account. (i) a reallocation of funds under 06/28/2012 S S 71.90 Credit No. 4117-BEN; (ii) a retroactive increase in the xi ISR Ratings at Amount Board Restructuring Restructuring Disbursed at Reason for Restructuring & Key Approved PDO Date(s) Restructuring Changes Made Change DO IP in USD millions percentage of expenditures to be financed to 100 percent for works under category (1) of Credit No. 4117-BEN and all expenditure categories under Credit No. 4490- BJ and; (iii) restructuring the project activities in Credit No. 4117-BEN to correspond with work activities under Credit No. 4490-BJ. The rationale was to allow the project to utilize the unused funds in the original financing to pay for outstanding contractor invoices that were to be paid from the government’s counterpart funds. I. Disbursement Profile xii 1. Project Context, Development Objectives and Design 1.1 Context at Appraisal Poverty in Benin. Per capita income growth rose from about 1 percent during 1990-95 to 3 percent in 2003, and real GDP growth accelerated from 4 percent during 1990-95 to more than 5 percent on average since 1996. Benin, however, was still a poor country as per capita income was only US$440 in 2003, and over 50 percent of the population was considered extremely poor or poor. Sectoral constraints and government strategy. Clear progress had been made in the three primary cities included under Phase 1 of the Adaptable Program Loan (APL). This included a significant increase of the financial resources of municipalities, as well as their organizational and technical capacity to deliver urban services. Benin’s secondary cities faced many of the same constraints identified during the first phase of the project, namely: a. Rapid but uncontrolled urban growth (5 percent yearly over the past 20 years) - one of the underlying chronic problems for nearly all of the issues that Benin’s cities have had to deal with and continue to have to do so. b. Slow implementation of the current decentralization process, which was hampered by the (i) lack of resources at city level; (ii) difficult realignment of the role of line ministries; and (iii) lack of decentralization of line ministries. c. Lack of local capacity and weak municipal management, thereby weakening their capacities to manage the decentralization process. d. Weak municipal resource mobilization and utilization. e. Poor delivery of basic infrastructure and social services. To remedy this situation, the government launched strategic actions to support urban growth and to improve living conditions of the urban poor. These strategic actions were supported by the World Bank and other international and bilateral agencies, leading from 1990-2004 to the provision in 35 cities for key urban services, which included: (i) improved management of core urban services in the area of drainage and rehabilitation of public infrastructure; (ii) provision of about 210 km of drainage and 55 km of collectors; and (iii) significantly decreases in cases of flooding. At additional financing. Benin’s population reached 8.7 million with a per capita income of US$540 in 2006. Poverty remained widespread and per capita income below the average for sub-Saharan Africa. The 2006 elections reaffirmed the importance of decentralization as a critical issue for development. Country and sectoral issues remained similar to those at appraisal, with urbanization rates at 41 percent and rapidly increasing at an annual growth rate of 5 percent. Rationale for Bank involvement. Both through its own assistance program and through its support to the formulation of the PRSP, the Bank has played a crucial catalytic role in 1 mobilizing resources of the donor community’s towards public investment in urban areas. The Bank’s credibility and convening power in the urban sector were primarily due to the success of the 1992 Urban Rehabilitation and Management Project and the First Phase of the Decentralized City Management APL (DCM I, approved by the Board in June 1999). Taken together, these two projects pioneered the transfer of responsibility for the operation and maintenance of urban infrastructure and communal services to local communities/governments, and introduced the subsidiary principle into the vocabulary of public investment and service delivery policy. The first phase of the APL succeeded in improving the capacity of local government to mobilize resources and target expenditures on priority infrastructure and services in consultation with local population. This first phase met and surpassed some of the trigger objectives for the second phase. In conclusion, the project was the logical continuation of the successful first phase of the APL. Additionally, the project, in particular through its components A and C, was fully consistent with two of the four building blocks of the World Bank’s strategy for the urban sector, namely: (i) Formulating national urban strategies; and (ii) Scaling up services for the poor, including upgrading low-income urban neighborhoods. 1.2. Original Project Development Objectives (PDO) and Key Indicators (as approved) The development objective of the second phase of the APL is to increase access to infrastructure and basic services for residents of Benin's primary cities (Cotonou, Porto- Novo and Parakou), as well as selected secondary cities (Abomey-Calavi, Lokossa and Kandi). The key indicators used to monitor progress towards achieving the project development objective were the following: • Growth in the revenues of municipalities; • Additional population getting access to primary and secondary paved roads; • Additional population protected from periodic flooding; • Number of operational neighborhood development committees; and • Quantity of municipal waste collected in Porto-Novo and transported out of the city. 1.3. Revised PDO (as approved by original approving authority) and Key Indicators, and reasons/justification The PDO was not revised as it remained relevant throughout the project implementation. After the approval of the additional financing, the key indicators for monitoring progress towards achieving the project development objective also remained the same as that of the original project, although the target values for the indicators related to component B were adjusted upwards to reflect the additional activities. 2 Table 1. Outcome indicators affected by additional financing Outcome Indicators Baseline Original target Adjusted target value Additional population getting access to 0 230,000 336,000 primary and secondary paved roads Additional population protected from periodic 0 38,000 114,000 flooding 1.4 Main Beneficiaries The main beneficiaries included: (i) residents of Benin’s primary cities (Cotonou, Porto- Novo and Parakou) and selected secondary cities (Abomey-Calavi, Lokossa and Kandi); (ii) local governments received capacity building support; (iii) cities were supported in their efforts to increase revenue generation to improve their capacities to finance and operate urban services; (iv) the poorest neighborhoods in certain cities were targeted for improved access to services; and (iv) local residents were encouraged to increase their participation in the urban development process. 1.5 Original Components (as approved) The project was comprised of the following project components as per the Project Appraisal Document (August 22, 2005) Component A: Municipal Management Strengthening (Appraisal/actual cost: US$5.33 million/US$3.51 million). The objective of this component was to improve management tools and financial resources of Benin's primary and selected secondary cities in order to enable them to better provide urban services and maintain implemented infrastructure, with support of relevant line ministries and devolved administrations. This component was divided in three subcomponents covering: (i) the three primary cities which already benefited from studies under Phase I; (ii) strengthening line ministries (through the MFE, MISD, MCPD and MEHU); and (iii) newly selected secondary cities. Component B: Basic Infrastructure (Appraisal/actual cost: US$21.52 million/US$22.50 million). The objective of this component was to provide improved access to urban infrastructure. This priority program, consisting of 22.5 km of urban road reconstruction/rehabilitation works and 4.3 km of drainage construction works (as detailed in Annex 4 of the PAD), was: (i) pre-identified by the cities; (ii) it was also only made up of investments with a sufficient economic rate of return (IRR >12 percent for roads); and (iii) new projects were complementary to existing networks. Component C: Community Participation and Integration (Appraisal/actual cost: US$2.46 million/US$1.79 million). This component was aimed at improving access to basic services for residents of poor neighborhoods. Similarly to Phase I, this component was aimed at improving sanitary conditions and the capacity of the cities to respond to neighborhood concerns, as well as the capacity of neighborhoods to formulate initiatives using a participatory approach, thereby developing a real partnership between communities and municipal governments. This component comprised three main 3 subcomponents: (a) neighborhood infrastructure; (b) community-based activities; and (c) support to community development. Component D: Solid waste management in Porto-Novo (Appraisal/actual cost: US$5.87 million/US$9.06 million). The objective of this component was to improve solid waste management in Porto-Novo. The implementation of the component was divided into two phases: (i) the first phase focused on studies and activities aimed at establishing the foundations for the long-term integrated management of solid waste and providing interim measures to avoid further deterioration of the environmental conditions; (ii) the second phase involved the implementation of a comprehensive solid waste management plan, as defined in the first phase studies, and included the construction of a landfill. Table 2: Original project – component cost by financier (amounts in US$ million) Component IDA GOB Cities Total A. Municipal management strengthening 5.26 0.07 0.00 5.33 B. Rehabilitation and reconstruction of basic urban 19.62 0.95 0.95 21.52 infrastructure C. Community participation and integration 2.33 0.08 0.05 2.46 D. Solid waste management in Porto-Novo 5.55 0.16 0.16 5.87 Price and physical contingencies 2.28 0.08 0.08 2.44 Total costs 35.00 1.30 1.20 37.60 1.6. Revised Components Component B was revised when the World Bank Board approved the additional financing credit (see below). The revision was made to complement the successful works already being carried out in Cotonou, Porto-Novo, and Parakou under the same component. The original project was financing 22 km of road works and 4 km of drainage works in the six cities and the Additional financing included an additional 9.6 km of roads and 10.8 km of drainage works in the three primary cities. Table 3: Additional Financing, Component B Cost by item and financier (amounts in US$ million, including tax for counterpart funds) Component B IDA GOB Cities Total Works 31.07 4.31 2.16 37.54 - Drainage 21.22 2.95 1.47 25.63 - Road works 8.52 1.18 0.59 10.29 - EIA and RAP 1.34 0.19 0.09 1.62 Consultant services (Including delegated 4.38 0.00 0.00 4.38 contract management) Operating costs (Project Unit) 0.12 0.00 0.00 0.12 Contingencies 3.42 0.41 0.21 4.04 Cost overrun original project 1.00 0.00 0.00 1.00 Total costs 40.00 4.73 2.36 47.09 4 1.7. Other significant changes Closing date. The project closing date was extended on three occasions. The first (from June 30, 2010 to December 31, 2010) concluded during the preparation of the additional financing credit (for six months) was to allow for planned works to be completed. The second (from December 31, 2010 to March 31, 2012) was to provide additional time for the completion of works after the government lost 16 months trying to get Parliament to approve the additional financing credit, thereby delaying the start of the work. The third (from March 31, 2012 to June 29, 2012) was to ensure that the government will find the shortfall amount of US$ 0.315 million equivalent (counterpart fund) and pay it to the project account. The cumulative extension extended to 23 months. Additional Financing. Additional financing of US$40 million was approved on September 12, 2008 to complement the satisfactory work already being carried out in Cotonou, Porto-Novo, and Parakou under component B. This was based on the government request of an additional financing of CFA 17 billion. In other words, these three primary cities had priority work programs for which funding was lacking, and which the original project was not able to address due to IDA constraints. These programs included the construction and rehabilitation of 260 km of roads and 167 km of drainage. Neighborhoods in the three major cities that benefited from the additional financing suffered from periodic flooding in the rainy season that isolated them from the rest of the city; it also had a negative impact on people’s health and seriously hindered access to social services and economic activities; the latter being particularly detrimental to single, female-headed households. Reallocation of funds and counterpart funding from the government. Credit funds were reallocated under the original project (Credit 4117-BEN) on January 28, 2010 to reflect actual expenses and expected expenses before the project’s closing date. This reallocation consisted of small adjustments between categories with no change in project activities. On July 8, 2011, credit funds were reallocated under the additional financing (Credit No. 44900-BJ) to enable the Government of Benin to smoothly complete ongoing work in different sites and also to start the pavement and drainage works on two new roads in Cotonou; the road to Abomey-Calavi was one of these new roads and had previously been included in the original credit (Credit No. 4117-BEN), but was put on hold due to insufficient funds. A request for policy exception was approved on June 28, 2012. The request consisted of: (i) a reallocation of funds under Credit No. 4117-BEN; (ii) a retroactive increase in the percentage of expenditures to be financed to 100 percent for works under category (1) of Credit No. 4117-BEN and all expenditure categories under Credit No. 4490-BJ and; (iii) restructuring the project activities in Credit No. 4117-BEN to correspond with work activities under Credit No. 4490-BJ. The rationale for the retroactive increase in the disbursement percentage was to allow the project to utilize the unused funds in the original financing to pay for outstanding contractor invoices that were to be paid from the government’s counterpart funds. The government was unable to mobilize sufficient funds to pay their 10 percent share of the original financing and 15 percent share of the additional financing. This was largely due to the fact that the government had to use 5 allocated funds to pay for unforeseen social measures that needed to be taken during the resettlement of communities living near the Takon landfill. 2. Key Factors Affecting Implementation and Outcomes 2.1. Project Preparation, Design and Quality at Entry This APL originated in 1999 as part of a larger urban sector program which also included a sector investment loan (SIL) for secondary cities and a learning and innovation loan (LIL) for an urban land privatization pilot. This programmatic approach was strengthened by the strong coordination among donors in Benin’s urban sector; the collaboration with AFD took the form of joint appraisal missions, information-sharing and studies which were used to design projects. In addition, AFD’s parallel financing almost doubled from Phase I, reflecting a strong commitment to the urban sector. The project built on previous experiences from Phase 1, as well as other completed projects; these consisted mainly of: (i) strengthening central-level coordination to ensure smooth project implementation; (ii) building capacity within the line ministry to ensure project sustainability; (iii) reducing staff turnover through signed agreements between the State and the cities to ensure that municipalities retain key staff during the project implementation period; (iv) improving the quality of works supervision at both the level of MEHU and cities’ through specific trainings and technical assistances; and (v) mitigating social risks by putting in place a resettlement framework 1. The project was in line with the Country Assistance Strategy (CAS) which specified, among others, the need for increased project selectivity and greater donor harmonization, using Benin’s own institutions, as well as with: a) The first Government’s Poverty Reduction Strategy 2 (PRS) which was built on four pillars and to which the project responded directly or indirectly to: (i) Pillar 2, “Developing human capital and environmental management”; by providing capacity to the municipalities for carrying out environmental planning and implementing and maintaining environmental infrastructure; (ii) Pillar 3, “Strengthening good governance and institutional capacity”; by improving governance and institutional reforms through support to the decentralization process; and (iii) Pillar 4, “Promoting employment and strengthening the ability of the poor to participate in decision-making and production processes”; through a local participation component, putting in place channels for participation of poor neighborhoods in their own infrastructure development; and 1 Resettlement was not planned during Phase 1. However, some resettlement activity took place without a resettlement framework being in place. 2 The PRS paper was approved by the government in January 2003 following broad-based consultations. 6 b) The second PRS (2007-2009) that focused on: Accelerating growth; using infrastructure development as a tool for growth; developing human capital; improving governance; and promoting balanced and sustainable development. Quality at entry This ICR rates the quality at entry as satisfactory. The project was designed to directly respond to key municipal sector challenges in Benin, and notably the: rapid but uncontrolled urban growth taking place in the country; slow implementation of the current decentralization process; lack of local capacity and weak municipal management; weak municipal resource mobilization and utilization; and poor delivery of basic social services. The overall PDO was consistent with project components and implemented activities, particularly those focusing on increasing access to infrastructure and basic services for residents of Benin’s primary cities and selected secondary cities. The components were straightforward and complementary and linked to the development objective. The project directly financed basic services and infrastructure investments, and carefully targeted activities aimed at strengthening financial and management capacities of municipalities to assure the durability and continuity of municipal investments. The PDO was also consistent with project components, outputs, and outcomes. The project was well balanced in terms of infrastructure investments and institutional strengthening activities aiming at sustaining outcomes. 2.2 Implementation As previously mentioned, the project closing date was extended on three occasions for a total of 23 months 3. The Mid-Term Review (MTR) was held in December 2008 after having been postponed in April 2008 due to delays in the delivery of the socio- environmental reports related to component D. At mid-term, the government had met all safeguards and institutional conditions for the construction and operation of a landfill in Porto-Novo, and all effectiveness conditions for the additional financing were in place, and the project was on track to meet the end-of-project targets. The government was unable to mobilize sufficient funds to pay for their 10 percent share of the original financing and 15 percent share of the additional financing. This was largely due to the fact that the government had to use allocated funds to pay for unforeseen social measures that needed to be taken during the resettlement of communities living near the Takon landfill. These measures consisted of three classroom blocs, eight toilets, roads, clinics, a community center, electricity and a small-scale water supply; these were supplied to compensate communities whose land was acquired for the construction of the landfill at Takon, Porto-Novo, amounting to CFA 830 million. Due to the inability to fulfill the counterpart financing requirement, the government requested a reallocation of funds, and on July 8, 2011, credit funds were reallocated 3 Refer to section 1.7 for further details. 7 under the additional financing (Credit No. 44900-BJ) to enable the government to complete ongoing work at different sites, and also to start the pavement and drainage works on two new roads in Cotonou, particularly the road to Abomey-Calavi which was previously under the original credit (Credit No. 4117-BEN), but had been put on hold due to insufficient funds. Based on the supervision missions, as well as the technical audit that was conducted, all project activities were satisfactory completed and delivered in a timely manner. On the other hand, at closure, the Takon landfill was still not being exploited, and the operating contract was only signed six months after project closing date. Those delays were primarily due to clearance delays at the level of the national board for procurement control. The project was implemented using in a participatory approach, which included the establishment of neighborhood development committees charged with supervising and operating social infrastructure projects, local supervision committees and beneficiary committees with a specific role of supervising works in their neighborhoods; and empowering beneficiaries on the management of assets. This collaborative approach reduced potential tensions during implementation and increased the sense of ownership among communities, thereby ensuring the optimal usage and sustainability of assets. 2.3. Monitoring and Evaluation (M&E) Design, Implementation and Utilization M&E design. A total of 17 project indicators were identified in Annex 3 of the PAD. These are presented in the data sheet along with baseline values, targets, and progress by project closure. The indicators were not modified during project implementation and targets of component B indicators were only updated to reflect new additional financing, which reflects the proper design. Project indicators covered both project outputs and outcomes, which makes it possible to cross check results. M&E implementation and utilization. Monitoring and evaluation activities were carried out by the task team in partnership with the coordination and implementation units on the basis of the agreed-upon indicators. Arrangements for results monitoring were established at the design stage; this included defining the frequency, the instruments, and who had responsibility for data collection and updating the indicators. In addition to normal supervision practices and reporting, the indicators were updated during every mission and reported in both the AM and ISRs. On the other hand, some challenges were faced when updating municipal performance indicators, especially those related to increases in municipal revenues. In addition, access to infrastructure indicators, and specifically those on access to primary and secondary roads and population protected from periodic floods, were reported differently (different baselines) in the ISRs than in the AF documents. Appropriate data collected on the indicators was evaluated and used during supervision missions, and also for decision-making on policy work. Indicators related to fiscal revenues and expenditures continue to be used by municipalities as benchmarks to auto-monitor their performances. 8 2.4. Safeguard and Fiduciary Compliance Safeguards The project was classified as a category “B” project and complied with all safeguard requirements. The project triggered two safeguard policies, namely: Environmental Assessment (OP/BP 4.01) and Involuntary Resettlement (OP/BP 4.12). At entry, the required and appropriate safeguards instruments: environmental and social management framework (ESMF) and resettlement policy framework (RPF) were prepared and disclosed in-country and the Infoshop on May 19, 2005 and May 20, 2005, respectively. During implementation, environmental impact assessments (EIAs) with detailed environmental and social management plans were prepared and implemented for project activities in Cotonou, Parakou, and Porto Novo. Further, elaborate resettlement action plans (RAPs) were prepared and implemented prior to the commencement of civil works; EIAs and RAPs were used during the work on the landfill at Takon (Porto Novo) and during the construction and rehabilitation of drainage collectors in Cotonou, Parakou and Porto Novo. The project benefited from regular safeguards supervision by Bank safeguards specialists (environment and social) based in the field. The project also benefited from monitoring visits from the Benin Environment Agency, which in most cases certified the project’s adherence to national environment assessment policy by approving and providing the certificate of environmental conformity of all the civil works carried out under the project. The implementing agencies (AGETUR and SERHAU) who were in charge of implementing the first phase of this APL have acquired experience in dealing with environmental and social impacts of urban infrastructure investments such as those financed under the project; they also ensured that supervising consultants adhered to the recommendations and procedures contained in the enterprise ESMP. This was confirmed by World Bank safeguards specialists during supervision missions. Finally, the project helped build environmental management and assessments capacities in the participating cities and municipalities through the organization of training seminars on environmental and social assessments facilitated by the Bank’s safeguards specialists. These training workshops were well received by government officials and consultants participating in the workshops. The rating for safeguards is satisfactory. Fiduciary The project had an adequate project financial management system that provided, with reasonable assurance, accurate and timely information that funds were being used for their intended purposes. The project’s accounting and financial reporting systems were in line with national and Bank procedures. Special project accounts were created and financial statements and reports were prepared in line with Bank procedures. In addition to annual financial audits 4, an effective internal control system was maintained to ensure 4 Financial audits were not qualified 9 that project expenditures were properly authorized, supporting documents were maintained, accounts were reconciled periodically, and project assets, including cash, were safeguarded. Yearly procurement plans were developed and shared with the Bank team for review. The updated procurement plans were disclosed publicly in time in accordance with the Bank’s requirements. Procurement of all works and goods, as well as selection of consultants under this project was carried out satisfactorily by following the Bank’s procurement and consultants guidelines. Procurement documents were found to be properly maintained, and the two PIUs had adequate capacity with qualified staff in carrying out procurement under the project. The project funds were used for their intended purpose. 2.5. Post-completion Operation/Next Phase All new assets have been handed over to relevant municipalities. Some equipment will be operated in coordination with line ministries, such as the Ministry of Education with regards to schools, the Ministry of Health with regards to health centers, and the Ministry of the Environment with regards to solid waste management facilities. Although the pre- collection, collection and transfer services of solid-waste in targeted areas in Porto-Novo has been launched and has proven satisfactory (pre-collection is managed by local NGOs, while collection and transfer are being contracted to local firms) the Takon landfill was still not operational. The oversight and operation of social infrastructure (health centers, schools, community development centers, water fountains, etc.) will fall under the responsibility of neighborhood development committees (NDC) that are already ensuring proper O&M, and are to a certain degree financially viable. Having said that, some NDCs still require financial and technical support from municipalities, and management contracts between the municipalities and NDCs have yet to be signed. These contracts will clearly assign roles and responsibilities (including financial responsibilities and commitments) between both parties. In addition, the project supported municipalities to put in place O&M processes for infrastructure assets through numerous TA activities. These resulted in: (i) creating a separate budget line for maintenance purposes; (ii) setting targets on budget commitments for O&M budget allocation; and (iii) creating municipal maintenance teams. Roads are regularly cleaned and primary and secondary drainage networks are maintained prior to each rainy season. Although municipalities are committed to sustaining their assets, their financial and technical capacities are still too limited to cope with the pool of existing and newly handed-over assets. To sustain project outcomes, the project focused on improving municipal capacities through: (i) improving municipal finances; and (ii) designing and putting in place municipal procedures and operations (MPO) manuals. The impact of the studies on improving municipal finances was positive enough to ensure their financial viability 10 amidst the push for decentralization, as shown in the table below. All municipalities overachieved, especially the secondary cities subject for the first time to such reforms 5. Table 4. Municipal revenues trends (2005/10, in millions of CFA) City / Year 2005 2006 2007 2008 2009 2010 Increase Cotonou 7,265 8,645 9,040 10,023 10,733 11,033 52% Porto-Novo 451 539 645 753 838 831 84% Parakou 2,120 1,700 1,595 1,750 2,197 2,600 23% Abomay-Calavi 511 658 741 1,025 1,669 1,703 233% Lokossa 213 117 142 158 398 405 90% Kandi 289 249 425 504 463 528 82% Those outcomes were strengthened by the studies on municipal cash-flow; the establishment of transparent and rigorous finance systems; and the elaboration of an urban land registry system, allowing the identification (and ensuing increase) of taxable assets, as well as improving the transparency of the collection process. In addition, the elaboration of the MPO manuals identified strengths and weaknesses in project performance, as well as areas in the program where changes were needed. Having said that, those activities would have further benefited from a programmatic follow-up process to ensure all measures had been implemented and to update inadequate measures. The positive outcomes of this project, coupled by the major challenges and opportunities urban areas present, led the country management unit to make urban as its priority sector in the new CAS. Furthermore, the Government of Benin requested additional Bank engagement in the urban sector. A preparation mission was carried out and a project concept note was approved with the objective of “improving urban management to increase access to urban services in targeted cities of Benin.” This new urban project which is being designed to pursue a similar programmatic approach and build on previous experiences will focus on: (i) improving service delivery in a larger number of cities, with a focus on local economic development; (ii) improve municipal capacities in investment planning and programming, financial management, procurement, safeguards, M&E and the development and maintenance of infrastructure and services; and (iii) improve performance and transparency by targeting weaknesses in the fiscal transfer system on the local and national levels. Those activities and others are still being discussed with the government. 3. Assessment of Outcomes 3.1. Relevance of Objectives, Design and Implementation The objective remains highly relevant and reflects the proper diagnosis of development priorities. Long-term and sustained efforts in the municipal development sector have resulted in substantive improvements in infrastructure and local service provision. Project 5 PGUD-1conducted similar reforms targeting primary cities. 11 objectives and design were consistent with the PRSP-2 (2007-2009). Although infrastructure has been improved in six cities, infrastructure and service demands are still huge across the country. Improving living conditions and access to economic opportunities continue to be relevant in a country where more than a third of the population lives below poverty line. The PDO remains relevant to Benin’s new poverty reduction strategy for 2011-2015, the Stratégie de Croissance pour la Réduction de la Pauvreté (PRSP-3), which retains the same strategic pillars as PRSP-2 in that it foresees: (i) accelerating sustainable growth that will contribute to transforming the economy; (ii) infrastructure development; (iii) reinforcement of human capital; (iv) improving the quality of governance; and (v) promoting equitable and sustainable national development. The Country Assistance Strategy (CAS) for Benin for FY09-12 (Report No 46485 – BJ) was discussed by the Board on February 26, 2009. The CAS has three key pillars: (i) strengthening competitiveness and accelerating private sector-led growth; (ii) improving access to basic services; and (iii) promoting better governance and strengthening institutional capacities. The project directly supported the second and third pillars by financing the construction of basic community infrastructure and supporting the government’s decentralization efforts and help local authorities to align their development plans with community priorities. 3.2. Achievement of Project Development Objectives The development objective of the second phase of the APL was to increase access to infrastructure and basic services for residents of Benin's primary cities (Cotonou, Porto- Novo and Parakou) and selected secondary cities (Abomey-Calavi, Lokossa and Kandi), and this objective was achieved. The project accomplished concrete and tangible results by contributing to the financing of infrastructure in the six cities. The borrower’s evaluation shows that activities were implemented and, to a large extent, achieved satisfactory targets in all six cities 6. Under the project, the construction of 37.63 km of paved roads (against a target of 32.18 km promised in the PAD), 15.41 km of primary drainage networks, and 45.5 km of secondary drainage networks (against a total target of 14.8) was completed. Those outputs allowed 446,520 more people (against a target of 336,000) to have access to paved roads and 526,184 people to benefit from reduced exposure to flood risk of (against a target of 114,000 persons). In addition, the project built nine three-class and two two-class modules, 21 four-block latrines, two equipped health centers and the re- equipping of others, 14 water kiosks, three public gardens and two markets. The construction of new classrooms increased the number of pupils attending the beneficiary schools to more than 1,300 and health centers have been visited regularly for consultations (an average of 20 consultations daily per HC); assisted deliveries also increased (between two and eight a day depending on the HC). The markets that were built provided additional resources for the beneficiary cities. On top of these results, property and rental prices increased along newly paved roads, and numerous commercial 6 Refer to Annex 7 for summary of borrower evaluation report. 12 activities were established, affecting social well-being, as well as tax revenues for beneficiary cities. In addition, the project completed the construction of a new landfill, five new and nine rehabilitated secondary refuse transfer stations, the procurement of rolling stocks, and the elaboration of numerous studies to build SWM capacities in Porto Novo and Cotonou municipalities. Thanks to the project, 115,000 additional people have access to improved solid waste collection, with direct benefits to local environmental quality and public health, as well as the employment of local NGOs to undertake the pre-collection of waste. The landfill was not operational at project closure as construction works had only just come to a close before the project closed, thus the full benefits have not yet been attained. Furthermore, numerous activities 7 were conducted to build municipal capacities in areas related to municipal finances and management. Specifically, those activities supported municipalities’ efforts to increasing their revenues ranging from 23 to 223 percent over the project’s duration, as well as improving their budget management and overall municipal procedures. More specifically, those activities supported: (i) the improvement of municipalities’ financial viability; (ii) the decentralization process; and (iii) building municipalities’ capacities to better sustain newly transferred assets, particularly through proper budget planning. 3.3 Efficiency 8 An ex post economic analysis was performed for the Second Projet de Gestion Urbaine Décentralisée over the lifetime of the project, i.e., the 2006-2011 periods or 6 years although an economic analysis was not performed ex ante except for the road subcomponent that yielded an economic rate of return (ERR) discounted at 12% of 24% with a Net Present Value (NPV) of US$ 9.5 million. Yet, it is expected that the benefits will accrue beyond the project implementation but were not calculated. Moreover, the ex post economic analysis covered the implemented project components as considered in the Proposed Project Restructuring of June 26, 2008 (PR Report No: 65871-BJ). Deriving the economic analysis benefits is made difficult by the complexity and heterogeneity of the health (e.g., less water-borne diseases although vector-borne could not be considered), environmental (less seepage, etc.), economic (numerous benefits although job creation was not accounted for) and social (numerous in terms of access, quality of life, etc.) outcomes from improving 4 components. Nevertheless, the benefits derived for component A were derived from the incremental municipal revenues in all the communes from 2006 to 2010 as compared to 2005 in constant terms. Most of the benefits for components B, C and D were derived from a survey that was conducted in the early 2012 (AGETUR and BOPEN, 2012). Most of the survey questions helped derive the perceptions of the targeted population in 6 communes, namely Cotonou, Abomey-Calavi, Kandi, Parakou, Lokossa and Porto-Novo housing a total population of 7 Refer to Annex 2, list of outputs for list of activities 8 Refer to Annex 3, Economic and Financial Analysis for full analysis 13 562,142 inhabitants. Although the survey quantitative results were robust and representative (sample of 1,646 with 95% confidence level and ±3% confidence interval), only a fraction of the perception results was monetized and used to derive the project benefits which however represent a very conservative share of the overall short to long term benefits. The project economic NPV discounted at 10%, the benefit/cost ratio, the ERR and the MERR are illustrated in Table 5. Although the road subcomponent is not considered in the economic analysis, it is definitely positive based on the ERR at appraisal (24%) and the achievements that exceeded the planned road subcomponent (37 km instead of 22.4 km). Moreover, a lower weight was assigned to Component A as not all the increase in fiscal revenue is considered to be attributable to the project. The project is economically viable with a NPV reaching US$ 96.4 million with an ERR and a MERR of 56% and 40% respectively and a PV B/C ratio of 1.4. No sensitivity analysis is needed as this is an ex-post evaluation with the benefits considered accruing during the implementation of the project (Table 5). Nevertheless, with proper operations and maintenance, the benefits will keep on accruing over the next years. Table 5: Economic Analysis of the Entire Project Key Economic Indicator Component A Component B Component C Component D Entire Project Economic Analysis NPV (US$ million) 32.6 43.4 2.5 -4.2 96.4 ERR >100% 24% 27% -- 56% Modified ERR >100% 18% 20% -20% 40% PV Benefit/Cost Ratio 5.0 2.0 1.9 0.2 1.4 Viability Yes Yes Yes No Yes 3.4. Justification of Overall Outcome Rating The overall project outcome is rated satisfactory as the project succeeded in achieving PDO indicators, as well as all intermediate indicators. Living conditions were improved according to the indicator targets set at project design, with minor targets undergoing an upward adjustment at additional financing. Service delivery clearly improved, and at a satisfactory level of efficiency. The project further remains highly relevant to current government and Bank priorities. Furthermore, the analysis of project efficiency revealed positive results, particularly with regard to design and implementation. 3.5 Overarching Themes, Other Outcomes and Impacts (a) Poverty Impacts, Gender Aspects, and Social Development With PGUD-2 investments in selected cities, local populations felt engaged in the design, implementation, and operation processes. The framework the project adopted through the establishment of NDCs, CLSs, and NCs only strengthened this approach. The project improved: (i) access to roads and enhanced mobility, and reduced flood impacts; and (ii) social well-being through improved and frequent streets cleaning, access to parks, health centers and schools, as well as improved solid waste management in selected 14 neighborhoods of Porto-Novo. Specifically the project improved, through the construction of health centers, access to maternal and neonatal care; the enrollment of girls in education was supported through the construction, equipping, and rehabilitation of schools; and through the landscaping of public spaces for families to access safe and clean playing and recreational areas. The project adopted labor-intensive construction techniques to increase short term-employability. In addition, many sustainable jobs were created around maintenance services (street cleaning and drain network maintenances), as well as SWM especially with the micro-collection via contracting numerous NGOs and enterprises. (b) Institutional Change/Strengthening Although the PDO did not come to mention institutional reforms, the project did support decentralization and local government reforms. Specifically, the project undertook numerous studies that did induce change through building capacities at the level of selected municipalities, specifically in the areas of: (i) increasing municipal revenues; (ii) managing resources and sustaining assets; (iii) improved technical and administrative municipal management; (iii) improved solid waste management; and (iv) increased the quality of local participation. (i) Increasing municipal revenues: The project conducted six studies 9 on finding ways to increase municipal capacity to generate additional revenues, as well as improve tax collection decentralized services. The implementation of the studies’ recommendations led to a large increase in both fiscal and non-fiscal revenues (refer to Table 4. Municipal revenues trends - 2005 to 2010). Nevertheless, some challenges were faced in the collaboration between the regional tax authorities and municipal revenue collection teams. Those revenue increases allowed municipalities to respect their commitments with regards to budget allocations for maintenance services. (ii) Managing resources and sustaining assets: The project included asset maintenance programs, as well as the establishment of municipal maintenance teams. This allows municipalities to programmatically budget and plan for maintenance services, depending on the type of infrastructure. In addition, budget performance indicators were assigned to each municipality, notably: a) ratios of recurrent costs budget allocated and spent on infrastructure and basic services, i.e. all recurrent costs by administrative operating expenses (as a percentage of total expenditures); and b) the share of municipalities’ recurrent costs budgets allocated and spent on routine road maintenance (as a percentage of total expenditures). Although not properly monitored, those ratios were to a large extent respected, allowing a larger share of increases in revenues to feed into sustaining existing and newly-built assets, as well as further expanding infrastructure networks. 9 Please refer to Annex 2 for complete list of conducted studies 15 Table 6. Ratios of budget spent on infrastructure and basic services to administrative operating expenses (as a percentage of total expenditures) Target 2006 2007 2008 2009 2010 2011 A 23 23 24 22 24 23 Cotonou I 80 77 77 76 78 76 82 A - - 32 24 12 24 Porto-Novo I 75 - - 68 76 88 76 A - - - 27 25 22 Parakou I 75 - - - 73 75 78 Abomey- A - - - 44 37 37 Calavi I 60 - - - 56 63 63 A - - - 31 15 17 Lokossa I 75 - - - 69 85 83 Kandi A - - - 55 37 37 I 60 - - - 45 63 63 A: Administrative operating expenses I: Budget allocated and spent on infrastructure and basic services (iii) Improved technical and administrative municipal management: A new MOP manual for technical and administrative management for the three main cities was drafted under the project, in close collaboration with relevant departments. In addition, it provided equipment and relevant trainings to build proper archiving systems. Positive outcomes were visible, especially with regard to the efficiency of some administrative processes. The MOP manuals became relatively obsolete and documents were selectively implemented due to the lack of proper monitoring, evaluation and updating framework. (iv) Improved municipal management: In addition to financing needed infrastructure, the project conducted numerous studies targeting the management and financing of the SWM sector at the municipal level to ensure its viability and replicability. Those activities allowed the organization of SWM from micro-collection to disposal integrating multiple stakeholders (households, NGOs, firms, SWM units, media, municipality and the State). Lessons learned from this experience are being replicated in other municipalities. However, the project lacked a comprehensive implementation process for many institutional capacity-building activities. Neither adequate resources nor time were invested to make sure those were properly implemented, and successes were mostly based on the enthusiasm and goodwill of PIUs and municipalities. (c) Other Unintended Outcomes and Impacts (positive or negative) In addition to the above-mentioned outcomes, the studies and methodologies utilized to improve municipal management and solid waste management processes are being exploited across the country. In addition, the government and municipalities are increasingly adopting a balanced approach between infrastructure investments on one hand, and institutional development, building and transferring of capacities and including 16 beneficiaries in the design, implementation, and operation of assets on the other. This resulted in increased demands by the government to further focus on the institutional aspects in future Bank engagements. Furthermore, fiduciary and safeguard skills developed during the project by government agencies and firms are to a certain extent being utilized across different projects. 3.6. Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops A beneficiary survey was conducted in early 2012 as part of the client’s elaboration of the Socio-Economic and Environmental evaluation of the project, specifically those related to components B, C and D (AGETUR and BOPEN, 2012) 10. Most of the survey questions helped derive the perceptions of the targeted population in the 6 cities, namely Cotonou, Abomey-Calavi, Kandi, Parakou, Lokossa and Porto-Novo housing a total population of 562,142 inhabitants. The survey quantitative results were robust and representative (sample of 1,646 with 95% confidence level and ±3% confidence interval). 4. Assessment of Risk to Development Outcome Rating: Moderate The overall risk to the development outcome is rated as moderate given the commitment level of the Government of Benin, and in particular municipal authorities (mayors), to sustain project outcomes. The discussion of the key risks to development outcomes are as follows: • Institutional risks to development outcome are moderate. Capacities built on the municipal level are embedded in the systems and staff at different levels, reducing the potential negative impacts of limited future staff mobility. Municipalities are committed to sustaining efforts aimed at improving their processes, as well as further implement studies’ recommendation. • Financial risk to development outcomes is moderate. Although municipalities still face large financial challenges, the project aimed at improving their financial situations. Financial and sustainability indicators were designed to help sustain development outcomes. As noted in section 2.5, fiscal and non-fiscal revenues of municipalities have increased dramatically under the project, and as section 3.5 shows, municipalities are making serious efforts to respect expenditure ratios. In addition to ensuring financial viability, those measures will help ensure availability of funds for operations and maintenance which would help sustain the rehabilitated and newly-constructed infrastructure. • Infrastructural risk to development outcomes is low. The rehabilitation and installation of key infrastructure assets have improved the access to services (including social services) in targeted areas. With improved own revenues, these 10 Report available upon request 17 development outcomes should be maintained as municipalities will be able to undertake regular maintenance of the facilities. 5. Assessment of Bank and Borrower Performance 5.1. Bank Performance (a) Bank Performance in Ensuring Quality at Entry Rating: Satisfactory Bank performance at project preparation is rated as satisfactory. During project preparation, the Bank maintained an intense dialogue with the government via the inter- ministerial committee (COSUCO), the project coordination unit under the Ministry of Environment, Housing and Urban Development (MEHU), implementing agencies (SERHAU SA and AGETUR), as well as local authorities, decision makers, local communities, and other key stakeholders. The Bank team integrated lessons learned from previous projects, especially the PGUD-1, and made full use of studies undertaken under the PGUD-1. These have laid a solid base for development and adoption of the project with the introduction of targeted institutional building activities in all six cities. As previously mentioned the M&E (design of results framework and project indicators) was highly relevant to development objectives and reflected both outputs and outcomes. Project indicators were not modified during project implementation, reflecting the relevance and simplicity of design. (b) Quality of Supervision Rating: Satisfactory The Bank’s team provided a high degree of coordination not only with the coordination and implementing agencies (SERHAU SA and AGETUR), but also with the oversight ministry. Two supervision missions were undertaken each year by the Bank. A number of field visits were undertaken to ensure compliance with safeguard policies, and to verify physical progress and achievements. There were also regular, monthly and (even) bi- weekly follow-up reviews in instances where the project was facing substantial delays or needed to be put back on track. The Bank’s implementation status reports (ISRs) realistically rated the performance of the project and provided project progress information to Bank management. There was also a very high level of inputs from the Bank’s procurement, financial and safeguards staff throughout the project, both in ensuring that fiduciary requirements were met, and in providing specific relevant trainings. The significant project implementation delays were discussed with Bank management; the latter provided sufficient guidance to the task team to assist relevant counterparts in addressing project issues. The Bank team closely worked with the project coordination unit (PCU) and the two PIUs once the progress milestones were agreed and appropriately adjusted the project activities in order to minimize the negative aspects those delays could have incurred. Those efforts minimized the negative impacts the delays could have incurred. During implementation, the Bank showed its readiness, and not only acceded to 18 all the requested extensions but also responded positively for additional financing request. The project’s implementation was rated satisfactory in most ISRs. (c) Justification of Rating for Overall Bank Performance Rating: Satisfactory. On the basis of the above assessment of Bank performance in ensuring quality at entry and in supervision, overall Bank performance is rated satisfactory. 5.2 Borrower Performance (a) Government Performance Rating: Moderately Satisfactory. Although it proved to be very committed to the success of the project, and provided the needed support to its preparation and implementation, the Government performance is rated Moderately Satisfactory due to (i) the substantial delays for approving the additional financing; and (ii) failing to deliver to its committed counterpart funding. At the municipal level, the municipal authorities were very committed, and were involved at all stages of project preparation and implementation. For example, a majority of the mayors were committed to successful implementation of project interventions, assisting and intervening directly, resolving key implementation issues with the PCU and PIUs. (b) Implementing Agency or Agencies Performance Rating: Satisfactory. The implementation agencies’ performance is rated as satisfactory. The PCU and PIUs worked closely with the Bank team in ensuring quality of project preparation. The PCU and PIUs, in collaboration with the municipal authorities, played an effective role in the preparatory work for the selection of projects at municipal and community levels, guiding the municipalities and the communities to meet all pre-set criteria for projects selection. The PIUs performed remarkably because of their prior experience with Bank financial management and procurement procedures, and the quality of its management and staff. The PCU ensured that Bank procurement and disbursement rules and procedures have been followed, and safeguards properly observed. It facilitated all supervision missions and effectively served as a link between the Bank and the PIUs, as well as the government. During implementation, the PCU as well as PIUs were very committed to the achievement of the PDOs. They worked diligently to respond to all queries from the Bank team as well as those from the government. They maintained high standards for civil works through regular monitoring and supervision of subproject activities. When substandard work was observed on some sites, pragmatic measures were implemented and site visits were constantly organized with different consultants to supervise and monitor works progress, significantly improving implementation and outcomes. Findings 19 from independent audit and evaluation reports acknowledge the PCU and PIUs handled management of project implementation very well. (c) Justification of Rating for Overall Borrower Performance Rating: Satisfactory. On the basis of the above assessment regarding government and implementing agencies’ performance (paragraphs 61 to 64 of this ICR), the overall performance of the borrower is rated as satisfactory. 6. Lessons Learned The lessons learnt from the project can be summarized as follows: • Keeping the scope of the project straightforward and simple and at the same time including some forward looking developmental elements. The maximum feasible amount of flexibility in implementation greatly facilitates the successful implementation of projects of such nature. • A programmatic project approach (over 10 years), targeting a limited number of cities increases both the sustained access to infrastructure, as well as the institutional building positive impacts. • Scaling-up the approach is necessary to reflect seriousness with regards to supporting the decentralization process. Limiting the scope to the city-scale might hinder the capacity to impact national urban policies, especially those related to fiscal transfers, urban planning, among others. The Bank must consider scaling-up to a broader national program targeting the urban environment, while keeping a specific focus on large cities as well as local engagement. • Taking advantage of existing implementation capacity and extending the life of an already proven and tested PCU and PIUs rather than creating new structures helped safeguard institutional memory, and improved the success of the project through challenging instances. This project built on what was already there and working. • Designing a proper implementation framework for institution-building components improves outcomes. Although the project conducted very interesting studies and capacity-building exercises, they did not fit into a comprehensive framework that could incorporate M&E and fine-tune approaches with regards to institutional activities. • Experience sharing on decentralization will facilitate Bank dialogue on potential reforms and reassure counterparts. Many countries in Africa have been through similar decentralization processes; many lessons learned need to be shared with the Government of Benin in order to integrate them in their decentralization action plan. This will clarify challenges the government and local authorities might envisage during the process, learn from others’ failures and successes, and plan accordingly. 20 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners (a) Borrower/implementing agencies (b) Cofinanciers (c) Other partners and stakeholders (e.g. NGOs/private sector/civil society) 21 Annex 1. Project Costs and Financing (a) Project Cost by Component (in USS million equivalent) Original Credit Actual/Latest Appraisal Estimate Percentage of Components Estimate (US$ millions) Appraisal (US$ millions) A. Municipal Management Strengthening (including 5.26 3.51 66.73 PPF Refinancing) B. Rehabilitation and Reconstruction of Basic 19.62 22.50 114.68 Urban Infrastructures C. Community Participation 2.33 1.79 76.82 and Integration D. Solid Waste Management 5.55 9.06 163.24 in Porto-Novo Total Baseline Cost 32.72 Price and Physical Contingencies 2.28 Total Project Costs 35.00 Total Financing 35.00 36.86 105.31 Total Undisbursed 0.082 Percentage disbursed 99.78 Additional Financing Credit – Component B: Rehabilitation and Reconstruction of Basic Urban Infrastructure Actual/Latest Appraisal Estimate Percentage of Components Estimate (US$ millions) Appraisal (US$ millions) Civil Works 31.08 33.51 107.82 - Drainage works 21.22 25.54 120.36 - Road works 8.52 7.97 93.54 - EIA and RAP 1.34 0.00 0.00 Consultant services (Including delegated contract management) 4.50 3.89 86.44 Operating costs (Project Unit) Total Baseline Cost 35.58 37.40 105.11 Contingencies 3.42 0.00 0.00 Cost overrun original project 1.00 0.00 0.00 Total Project Costs 40.00 40.00 Total Financing 40.00 37.40 93.50 Total Undisbursed 0.000.96 Percentage disbursed 100.00 22 (b) Financing (Original and Additional Financing) Appraisal Actual/Latest Type of Estimate Estimate Percentage of Source of Funds Cofinancing (US$ (US$ Appraisal millions) millions) FRANCE: French Agency for Parallel 11.70 0.00 00 Development financing Borrower Co-financing 3.30 0.00 00 International Development 75.00 74.27 99.02 Association (IDA) NB: 1 DTS = 761 FCFA Note 1: The loan was in FCFA and DTS, and due to currency changes, the comparison between appraisal and actual are not 100% accurate. Note 2: The exchange rate at appraisal was SDR 1 = US$ 1.46323 and FCFA 1,000 = US$ 1.8459At Additional Financing the exchange rate was: SDR 1.0 = US$ 1.64664 and CFAF 440 = US$ 1.0 Note 3: Appraisal Estimates are from PAD for the original financing and in the Project Paper for the Additional Financing. 23 Annex 2. Outputs by Component Component A: Municipal Management Strengthening A. Studies planned under component A that have been fully realized 1. LOCAL FINANCES - Improvement in collection of local revenues in Cotonou (April 2007) - Improvement in collection of tax revenues in Porto-Novo and PARAKOU (April 2007) - Increase in tax revenues of municipalities of Abomey-Calavi, Kandi and Lokossa (February 2007) - Monitoring of revenues and expenditures of municipalities of Abomey-Calavi, Kandi and Lokossa (September 2007) - Increase in local revenues of municipalities of Abomey-Calavi and Lokossa (2007) - Improvement in performance of decentralized tax services of municipalities of Cotonou, Porto-Novo, Parakou, Abomey-Calavi, Kandi and Lokossa (2007) - Urban Land Register (ULR) in Lokossa on i) Establishment of site plans for Lokossa ii) Urban surveys and data processing at Lokossa iii) Establishment of a system of signage in urban area of the municipalities of Lokossa and Kandi 2. PROCEDURES AND INSTITUTIONAL ORGANIZATION Porto- Abomey- Studies Cotonou Parakou Lokossa Kandi Novo Calavi Manual of technical, administrative, financial and accounting procedures, x x x Municipalities of Cotonou, Parakou and Porto-Novo (2007) Organizational study of municipal services in municipal districts in x x x Abomey-Calavi, Kandi and Lokossa (2007) Procedures and institutional organization x x x x x x (2007) 24 3. INFRASTRUCTURE, CIVIL ENGINEERING AND ENVIRONMENT Porto Abomey- Studies Cotonou Parakou - Lokossa Kandi Calavi Novo Schedule for maintenance and new works in the three cities with special status, as x x x x x x well as in Abomey-Calavi, Kandi and Lokossa (2009) Development of the national waste management strategy and a waste management x x x x x x guide (2007) Technical study for infrastructure construction, x x x x x x civil engineering and the environment ((2007 / 2009) 4. RECORDS MANAGEMENT Study Cotono Parakou Porto- Abomey- Lokoss Kandi u Novo Calavi a Modernization of archiving systems for municipalities of x x x Cotonou, Porto and Parakou (2007) 5. CENTRAL ADMINISTRATION STUDIES - Capitalization study on surveys conducted by municipalities that have not benefitted from PGDU-2 (July 2010) - Establishment of market monitoring software - Establishment of software and statistical database - Establishing software and an urban database - Socio-economic study and evaluation by the public of urban services at the start of the project - Study on the improvement of performance of decentralized tax services - Study for the production of statistical data and follow-up of performance indicators of municipalities 25 6. FIGHT AGAINST AIDS (Studies and Training/Awareness-raising) City of Cotonou – Studies/Capacity Building Activities implemented - Training of CDQ members on preventative methods in the fight against AIDS - Capacity building of members of the AIDS Focal Unit of the city of Cotonou - Capacity building of peer educators (PE) - Capacity building of the members of the Municipal Committee in the fight against AIDS (CCLS) - Capacity building of members of neighborhood committees in the fight against AIDS - Capacity building of male and female nurses and mid-wives in the five health zones - Setting up of a database of monitoring indicators and evaluation of actions undertaken in the fight against AIDS in Cotonou, with special emphasis on orphans - Purchase of school supplies for orphans and children of Persons Living with HIV (PVVIH) - Regular meetings between the Municipal Office of Cotonou and the network of NGOs involved in the fight against AIDS in Cotonou - Dissemination of messages on AIDS prevention and organization of inter-active broadcasts City of Porto-Novo – Studies/Capacity Building Activities implemented - Capacity building of stakeholders (CDQs, CCLS, multi-sectoral team), health workers and IEC - Training of CDQ members on preventative methods in the fight against AIDS - Establishment of a multi-sectoral team for follow-up and evaluation of actions undertaken in the fight against AIDS in Porto-Novo and capacity strengthening of that team - Capacity building of members of the municipal committee in the fight against AIDS (CCLS) - Organization of IEC sessions, in keeping with the participatory approach on preventative methods and actions undertaken in the fight against AIDS in the public and private high schools in the city of Porto-Novo - Capacity building of health workers to ensure medical follow-up, prevention treatment of STDs in sex workers and others - Establishment of a database for follow-up and evaluation indicators for actions undertaken in the fight against AIDS in Porto-Novo - Medical consumables for health centers involved in medical monitoring of sex workers and others - Regular meetings between the Municipal Office of Porto-Novo, NGOs and agencies involved in the fight against AIDS in Porto-Novo, together with the multi-sectoral team, with a view to coordinating their activities - Dissemination of messages on AIDS prevention and organization of inter-active broadcasts - Organization of two sessions of the municipal committee on the fight against AIDS (CCLS) - Organization of the World AIDS Day 26 City of Parakou – Studies/Capacity Building Activities implemented - HIV/AIDS prevention activities of existing anti-AIDS clubs and setting up of two new clubs in the high schools of Banikani and Titirou - Training of 500 peer educators working with groups of young people: school drop-outs, young people with no schooling, and others (apprentice craftsmen, drivers of taxi- motors etc.), following the stages and procedures required in the approach - Training and upgrading of skills for 15 health workers and nurses on dealing with STDs, taking into consideration new algorithms - Building capacity for two services adapted for treating sex workers - Psycho-social support and at-home monitoring by trained mediators, of women in all the PTME sites in Parakou - Assisting Municipal Office and CCLS to coordinate monitoring and evaluation of the HIV/AIDS strategy at the municipal level - Development and annual updating of the record of interventions in the city of Parakou, under the supervision of the CCLS representative - Collection, processing and analysis, on a quarterly basis, of data on activities carried out in the municipality in relation to the fight against AIDS - Adaptation of standardized mediums for data collection - Organization of half-yearly meetings for coordination and follow-up, involving the main stakeholders working in the municipality (CCLS, CALS, CQLS, CDQs, NGOs, Health organizations, UFLS, etc.) - Nutritional support for persons infected with and affected by HIV - Dissemination, through the activities of CCC, of information on the new law against the discrimination and stigmatization of Persons Living with HIV (PVVIH) B. Training/Workshops/Awareness-building 1. Training/Awareness-building in municipalities and the Central Administration Beneficiaries No. of head Theme of training workshop of departments trained Cities with a - Waste water treatment : extraction, sampling and special status management *Heads of 26 - Local development : Principles, Procedures and Technical and Planning Financial Services in Municipal - Efficient operational management of development Offices projects and programs - Human Resource Management, - Management of micro-projects : management of 27 community infrastructure - Financial/budgetary planning and control. Secondary cities - Efficient Operational Management of Development * Heads of 18 Projects and Programs, technical and - Strategy for mobilizing own resources of local financial services governments, in Municipal Offices - Efficient Operational Management of Development Projects and Programs, - Efficient Operational Management of Development Projects and Programs, - Management of Human Resources, - Management of micro-projects: management of community infrastructure, - Financial/budgetary planning and control. Ministries - Local development and urban management, involved in the 25 - Defining and establishing the system of monitoring Project and evaluation, * Department - Operational planning and project monitoring, heads of MEF and MDGLAAT - Results-based management : multi-tiered analysis and recommendations for project management, based on types of indicators (impact and/or progress indicators), - Micro-project management as a part of the management of community infrastructure, - Decentralization, local development and urban management, - Results-based management, - Operational planning, analysis, budget function, project monitoring and control for purposes of development = Management based on results/monitoring/evaluation, - Project audit and the responsibilities of the various stakeholders, - The strategy of local development stakeholders, the practice of local development and urban development, - Local Finance and Taxation, - Decentralization, local governments and municipal governance. CPS - Procurement of contracts :consultants and goods *Department head - Operational planning and project monitoring in charge of 3 - Study on environmental and social impact. planning and 28 supervision Department head in charge of planning and supervision of works Department head in charge of supervision of studies 2. Training/Awareness-building in Municipalities - Providing assistance in activities in the fight against AIDS in Cotonou, Parakou, Porto- Novo (3 separate missions) - Communicating information on HIV/AIDS in municipalities of Cotonou, Porto-Novo and Parakou - Training in planning and programming for the budget in the municipality of Abomey- Calavi - Training in Land Law in the municipality of Abomey-Calavi - Training in Municipal Accounting, Management of Fixed Assets and Inventories, in the municipality of Abomey-Calavi - Training in Labor Law in the municipality of Abomey-Calavi - Training in Public Accounting in the municipality of Abomey-Calavi - Training in Management /Project Evaluation in the municipality of Abomey-Calavi - Training in Decentralization and the Principle, Procedure an Planning of Local Development in the municipality of Abomey-Calavi - Training in Urban Sanitation: Management of solid and liquid waste, evacuation and treatment of liquid waste, procedures and techniques of environmental and socio- economic assessment in the municipality of Cotonou - Training on the methods and procedures of contract procurement in the municipality of Cotonou - Training in management software in the municipality of Cotonou - Training in local taxation, urban planning and land management, management of a server and software to access the Urban Land Register data base, in the municipality of Cotonou 29 C. Component A/ Office Supplies and Equipment Supplies and Equipment of Municipalities and Central Administration TYPE OF EQUIPMENT BENEFICIARIES OBSERVATIONS Computers, copiers, printers, digital camera, Cities with special Delivered and TV VCR, camcorder, lithor flipchart, motor- status functional bike, off-road bike and utilitarian vehicles Computers, copiers, complete office furniture Secondary Cities Delivered and with armchairs, storage cabinets and chairs, Functional television, VCR, camcorder, lithor flipchart, motor-bike, off-road bike and utilitarian vehicles. Computers, copiers, complete office furniture Ministries involved Delivered and in the Project with armchairs, storage cabinets and chairs, Functional television, VCR, camcorder, lithor flipchart, motor-bike, off-road bike, utilitarian vehicles. Computers, copiers, motor-bikes, utilitarian CPS Delivered and vehicles, complete office furniture with functional armchairs, storage cabinets and chairs, fuel, office rental COMPONENT B: Rehabilitation of basic urban infrastructure A. Studies and Monitoring Activities 1. List of implemented service contracts. In the framework of PGUD-2, the Agency implemented twenty-five (25) service contracts, seventeen (17) under the basic program and eight (8) for the additional program. The type of services, and the number of the contracts corresponding to the services, are listed below : - Five (5) Engineering Study Missions, three (3) of which were combined with missions to supervise works - Ten (10) Missions for monitoring and supervision of works, three (3) of which were combined with engineering studies, as part of the same contracts - One (1) Feasibility Study Mission - Five (5) Study Missions on environmental impact - One (1) Preliminary Assessment Mission, for the complementary program - Two (2) Technical Audit Missions - Four (4) Specific Study Missions on the implementation of communication plans and the creation of a website N° Service contracts/Basic funding: Agreement n° 4117 – BEN 1 Technical audit of the first two years 2 Monitoring of road maintenance in Cotonou 3 Monitoring of drains in Porto-Novo 30 4 Monitoring of road maintenance 5 Study and monitoring of road maintenance Abomey-Calavi 6 Study and monitoring of road maintenance Lokossa 7 Study and monitoring of road maintenance Kandi Environmental and social studies on roads in secondary cities and 8 follow-up of PGIE and PARC 9 Preliminary Assessment of Complementary Program 10 Feasibility Studies under the Complementary Program 11 Environmental and social studies under the Complementary Program 12 Technical studies of drains under the Complementary Program 13 Technical studies of roads under the Complementary Program 14 PGUD-2 study on environmental impact N° Service contracts/Basic funding: Agreement n° 4117 – BEN 1 Supervision and control of works in the city of Cotonou 2 Supervision and control of works in the city of Porto-Novo 3 Control and supervision of works in the city of Parakou 4 Implementation of short-term communication plan 5 Creation and development of PGUD-2 Website Mission to evaluate socio-economic and environmental impacts of 6 PGUD-2 project 7 Implementation of the long-term communication plan B. Works. As at 31st March 2012, the following had been made possible as a result of PGUD-2 : - 37 633 ml of paved roads, - 1 335.33 ml of macadamized roads, - 45 500 ml of secondary drains, - 15 414 ml of primary drains. COMPONENT C: Community Participation and Integration A. Studies Realized Title of the study Coton Parako Porto Abomey Lokos Kand ou u -Novo -Calavi sa i Technical studies, PGIE , PARC, monitoring and supervision of x x x community infrastructure works Architectural, technical and environmental study, monitoring and supervision of the x x x construction of community infrastructure in the cities of Abomey-Calavi, Kandi, 31 Lokossa. Technical Assistance for the establishment and development of Neighborhood Development Committees (CDQs) and support x x x x x x for CDQs to serve as an interface between residents and municipal authorities in new, disadvantaged neighborhoods. Identification of support measures for disadvantaged x x x neighborhoods in the cities of Abomey-Calavi, Kandi, Lokossa B. Works carried out Municipalities/ Types of Works Neighborhoods Cotonou Ahouansori -Construction of 4 latrine modules, each containing 4 cubicles, in 2 schools in Ladji -Construction de 4 latrine modules, each containing 4 cubicles, in 2 schools in Vossa Porto-Novo -Provision of furniture, audio-visual equipment and public address Tokpota system for the Center for Community Development (CDC) -Construction of Zèbè Market -Provision of medical materials and consumables for the health center. -Construction of a block of latrines with four cubicles, at the EPP in Davo. -Provision of furniture, audio-visual equipment and public address Djègan-Daho system, installation of a generator for the Community Development Center -Construction of a market -Construction of a block of latrines with four cubicles at the EPP in Zounkpa -Improving and upgrading of a public square Gbodjè -Construction of a block of six classrooms at the EPP in Gbodjè, office, shop, furniture -Construction of two blocks of latrines at the EPP in Gbodjè. -Construction of forty (40) cesspools for family units and thirty (30) Djassin latrines for target families and communities in Djassin-Daho ; Djassin Zounmè, Foun-Foun tokpa -Construction of two (2) classrooms, office, shop, outer fencing, playground equipment, furniture for Nursery School of Djassin- Zounmè 32 -Refurbishing of two (2) classrooms at the EPP in Djassin-Daho, and provision of furniture -Refurbishment of a module of three (3) classrooms at the EPP at Foun-Foun North and provision of furniture Parakou Titirou -Construction of 10 water kiosks Allaga -Supply and installation of 60ml de metal railing for 2 modules of 3 classrooms, EPP Station and EPP OCBN, Banikanni Construction of a market Kandi Damadi -Construction of a market Goubou, Damadi -Construction of water kiosks center and Bataka1 Dodokpanin -Construction and equipping of a dispensary Sinkparou -Construction and equipping of a module of three classrooms Lokossa -Construction of protective structure for the base walls of a module of Agonvé- three classrooms, repairs to part of the roof of the classrooms, repairs Akodédrjo to electrical fittings in classrooms -Improvement and upgrading of the public square -Construction of two modules of three classrooms with office and shop -Construction of a latrine module with four cubicles -Construction of fencing and entrance gate with sign -Construction of three water kiosks in the Akodédjro central market C. Training activities under component C - Training of members of Neighborhood Development Committees (CDQs)on the Themes : (i) Role of CDQs in local development, (ii) Management of community equipment in the context of decentralization - Exchange visits of CDQs to Parakou. - General Assemblies to re-energize or renew the executive bodies of former CDQs - Training of new C/SAICs and new Assistant SAICs (Support Services for Community Initiatives), on techniques for developing community micro- projects - Training on social mobilization and mobilization of local resources - Exchange visits between CDQs, SAICs and elected local officials - Two (02) General Assemblies to inform and build residents’ awareness of the activities carried out in their neighborhoods by the Neighborhood Development Committees, the SAICS and PGUD-2 - Exchange visit to Togo of the presidents of CDQs and Assistant SAICs - Training of SAIC members and presidents of CDQs on the theme: Managing conflicts in the community - Exchange visit by SAIC members to Burkina Faso 33 - Meeting on 3rd – 6th May 2010, in Kandi, bringing together all SAICs, with participation of C/SAIC and Assistants SAICs. First General Assembly for renewal and/or re-energizing of neighborhood committees, in the 14 beneficiary neighborhoods of the Project. Dates : 8th – 10th July 2010 - Training seminar for SAICs on Results-Based Management (RBM). Dates: 21st – 25th September 2010, with participation of all SAICs from the 6 cities - Training seminar for SDQs on the theme: Techniques for preparing and conducting a meeting. It was held from 20th – 26th October 2010, with participation of CDQ executive members. - Training for SAIC members on resource mobilization and funding for community projects: - Training of CDQs on “leadership and performance” D. Goods and Equipment Equipment/Goods : IT equipment, Beneficiaries electronic equipment and copiers 2 computers, 1 digital camera – videotape CSAIC/ Cotonou recorder 2 computers, 1 copier, 1 digital camera – 1 CSAIC/ Porto-Novo television - 1 videotape recorder, 1 camcorder 2 computers, 1 copier,1 digital camera, 1 CSCAIC/ Parakou television-1 videotape recorder , 1 lithor flipchart 2 computers, 1 copier, 1 digital camera, 1 television, 1 videotape recorder, 1 lithor Abomey – Calavi flipchart 2 computers, 1 copier, 1 digital camera, 1 Kandi television, 1 lithor flipchart,1 videotape recorder, 1 camcorder 2 computers, 1 copier, 1 digital camera, 1 Lokossa television, 1 lithor flipchart, 1 videotape recorder Rolling Stock 2 off-road bikes CSAIC/ Cotonou 1 off-road bike – 1 motor-bike CSAIC/ Porto-Novo 1 off-road bike – 1 motor bike CSCAIC/ Parakou Office furniture: 1 computer table CSCAIC/ Parakou Furnishings EPP/Cotonou (old neighborhoods) EPP of Parakou, EPP of Porto-Novo CDC Yénawa (Cotonou), CDC Parakou, CDC Djègan Daho and Tokpota at Porto-Novo, SAIC Abomey-Calavi and Lokossa 34 (school furnishings) Instruments, medical equipment and consumables Furniture, Instruments and other medical CCS from Yénawa to Cotonou and equipment from Tokpota to Porto-Novo Medical consumables CCS from Yénawa to Cotonou and from Tokpota to Porto-Novo Refrigeration equipment CCS from Yénawa to Cotonou and from Tokpota to Porto-Novo COMPONENT D: Capacity Building in Solid Waste Management in Porto-Novo A . Studies - Study on organization and financing of the solid waste sector (contract entered into operation on 25th June 2007) - Environmental, social and technical study for the approval of a future site for CET (Centre d’Enfouissement Technique) - Waste Landfill Facility (Contract entered into operation on April 30, 2007) - Studies on technical, environmental and social impact of landfill site B. Infrastructure works - Rehabilitation of existing Collection Points and the construction of 7 new collection points - Socio-economic infrastructure at Aïdjèdo (Takon site) including: • Construction of a module of three classrooms and a block of latrines with four cubicles, • Rehabilitation of existing module of three classrooms, construction of a section of fencing with a sign, at the Aïdjèdo school and establishment of a rudimentary playground • Construction of a section of fencing with a sign at the Aïdjèdo school • Establishment of a rudimentary playground • Construction of the Aïdjèdo Health Center • Works for supplying piped water in Aïdjèdo - Works for the construction of a Waste Landfill Facility (CET) at Takon 3500ml linking asphalted road between Porto-Novo/Pobè and the village of Aïdjèdo Road width = 7 meters Access Sloping : double Road Drainage : longitudinal and divergent channels across the road Foundation layer of road base asphalt 0/40 Base layer and surface layer of road base asphalt 0/12 Guard post at entrance 35 Block of administrative buildings Building for control and weighing Meeting room Shop General Garage / workshop Services Weighbridge Changing room and dining room Low wall and grilled enclosure Roadway to accommodate vehicles 6m and 3m Paved parking lot for VL Consolidated access, 2 meters wide Consolidated roadway to accommodate vehicles 4m wide Consolidated technical area Network for rainwater drainage Green areas Water and electricity feeding network Hedge for visual screen Rustic enclosure with barbed wire Consolidated access Consolidated roadway to accommodate vehicles Network for rainwater drainage Waste Partial storage for very bulky waste material Landfill Layout of containers for burying waste Area Layout of levees Compacted technical backfills Lixiviat drainage network Leak-proof membrane C. Capacity building - Creation and equipping of Waste Management Unit (CDG) - Plan for financing waste management sector - Study on the organization and financing of solid waste sector in Porto-Novo D. Goods and Equipment Equipment/Goods Observations Office furniture for Waste Management 2 desks, 2 armchairs, 1 cupboard Unit IT material for the Unit 2 computers, 2 printers Rolling stock for the Unit 1 4 X 4 Vehicle and 6 motorbikes Procurement of 42 garbage containers Received on 31st January 2012 Procurement of equipment (bulldozer and Received on 31st January 2012 loader), for the CET Procurement of a generator for CET Received on 31st January 2012 TAKON 36 E. Training - Training on the technique to develop a zoning plan in Porto-Novo, carried out by OXFAM QUEBEC - Training on developing and conducting IEC projects on solid household waste management in Cotonou, carried out by GEMERITES - Training on waste management (Pre-collection, collection and transportation, sorting and recycling…) in Cotonou, by CSEE - Training on the management of solid urban waste management agencies in Dakar, Senegal by ISADE 37 Annex 3. Economic and Financial Analysis A. Background 1. An ex post economic analysis was performed for the Second Projet de Gestion Urbaine Décentralisée over the lifetime of the project, i.e., the 2006-2011 periods or 6 years although an economic analysis was not performed ex ante except for the road subcomponent that yielded an economic rate of return (ERR) discounted at 12% of 24% with a Net Present Value (NPV) of US$ 9.5 million. Yet, it is expected that the benefits will accrue beyond the project implementation but were not calculated. Moreover, the ex post economic analysis covered the implemented project components as considered in the Proposed Project Restructuring of June 26, 2008 (PR Report No: 65871-BJ). 2. The project has 4 components and sub-components of the four components were covered under the economic analysis: • Component A: Municipal Management Strengthening • Component B: Basic infrastructure in urban areas • Component C: Community participation and integration • Component D: Porto-Novo solid waste management 3. The economic costs of the project were adjusted for shadow pricing (see Attachment 1 for more details) and are illustrated in Table A3.1. Table A3.1: IDA, GOB and Municipality Investment Used in Economic Analysis over 2006-12, US$ million Component Investment Factor assigned for the Component for the Economic Analysis cost Goods Services Work 72.2 0.85 1 Drainage 45.1 0.85 1 Road Works 19.8 0.85 1 EIA and RAP 3.1 0.85 1 Consultant Services 8.8 0.85 1 Operating Cost 0.2 0.85 1 Contingencies 7.9 0.85 1 Cost Overrun 2.0 0.85 1 Total Investment 86.9 0.85 1 4. Deriving the economic analysis benefits is made difficult by the complexity and heterogeneity of the health (e.g., less water-borne diseases although vector-borne could not be considered), environmental (less seepage, etc.), economic (numerous benefits although job creation was not accounted for) and social (numerous in terms of access, quality of life, etc.) outcomes from improving 4 components. Nevertheless, the benefits derived for component A were derived from the incremental municipal revenues in all the communes from 2006 to 2010 as compared to 2005 in constant terms (Egbeto, 2012). Most of the benefits for components B, C and D were derived from a survey that was conducted in the early 2012 (AGETUR and BOPEN, 2012). 38 Most of the survey questions helped derive the perceptions of the targeted population in 6 communes, namely Cotonou, Abomey-Calavi, Kandi, Parakou, Lokossa and Porto-Novo housing a total population of 562,142 inhabitants. Although the survey quantitative results were robust and representative (sample of 1,646 with 95% confidence level and ±3% confidence interval), only a fraction of the perception results was monetized and used to derive the project benefits which however represent a very conservative share of the overall short to long term benefits. B. Economic Analysis Results Economic Analysis for Component A - NPV, ERR, MERR and PV Benefit/Cost Ratio 5. The project economic and dataset are illustrated in Tables A3.2 and A3.3 respectively. Only the net incremental municipal revenues in constant terms over the 2006-10 periods are considered as benefits in the economic analysis and increase by 6.2% per annum over the period. Moreover, all the costs associated with the component are considered and annualized over the first 5 years of the project life. Table A3.2: Dataset for the Economic Analysis of Component A Communes 2005 2006 2007 2008 2009 2010 Yearly ±% Cotonou 7.3 8.6 9 10 10.7 11 8.4% Porto Novo 0. 5 0.5 0.6 0.8 0.8 0.8 13.9% Parakou 2.1 1.7 1.6 1.8 2.2 2.6 5.7% Abomey-Calavi 0.5 0.7 0.74 1.0 1.7 1.7 29.8% Lokassa 0.2 0.1 0.1 0.2 0.4 0.4 23.9% Kandi 0.3 0.2 0.4 0.5 0.5 0.5 15.5% Total Revenues CFA Bn 10.8 11.9 12.5 14.2 16.3 17.1 10.0% GDP Deflator 238.8 251.2 257.8 276.2 278.7 283.5 Total Revenues CFA Bn Constant 2005 10.8 11.3 11.6 12.2 13.9 14.4 6.2% Exchange rate (end of period) 546.0 477.7 437.0 454.5 448.6 485.1 Total Revenues US$ Mn Constant 2005 19.9 23.6 26.6 27.0 31.1 29.6 Benefit (incremental revenues) 0.0 3.7 6.7 7.1 11.2 9.8 Cost 1.2 1.2 1.2 1.2 1.2 Source: Oanda website: ; WDI (2011); and Egbeto (2012). 6. Component A is economically viable with a NPV discounted at 10% reaching US$ 32.6 million with an ERR and a MERR greater than 100% and a PV B/C ratio of 5. Table A3.3: Economic Analysis of Component A Key Economic Component A Indicator Ex post Economic Analysis NPV (US$ million) 32.6 ERR >100% Modified ERR >100% PV Benefit/Cost Ratio 5.0 Viability Yes 39 Economic Analysis for Component B - NPV, ERR, MERR and PV Benefit/Cost Ratio 7. The project dataset and economic analysis are illustrated in Tables A3.4 and A3.5 respectively. One of the 2 subcomponents is considered: • the drainage subcomponent with benefits derived from the hedonic value increase of the lots around the drainage system (150 m on average from each side of the drainage installed) where the perceived net incremental price of land is calculated in Table A3.5; and the people no longer affected by flooding during the last 2 years with a monetization in terms of gross value added at factor cost/capita per day by 20 days of forgone flooding by the population no longer affected by flooding (981,000 residents), which is assumed to represent a share of the gained economic activity as perceived by the surveyed population (Table A3.4). • The roads subcomponent was not considered as the traffic count was not performed at the end of the project. However, since the road implementation exceeded the original estimates from 22.4 km to 37.5 km in the 6 communes, it is safe to assume that the project exceeded the ERR calculated at appraisal of 24% with a sensitivity of 15%. Moreover, the final ERR of roads in the parent project funded by AfD was calculated using the Roads Economic Decision Model (RED) to be 26.5% surpassing the initial while the one for the additional financing was calculated to be 55% also surpassing the initial estimates. 8. All the costs associated with the component are considered in the economic analysis. Table A3.4: Dataset for the Economic Analysis of Component B, Drainage Commune Collector Area through Average Community Average Population Gross Benefits the collector area of Perception of Ct Price -day of value length (150 a lot the Increase increase forgone added at m from each Attributable of the lot flooding (10 factor side) to PGUD-2 days/year*2 cost/ last years) Capita/day m m2 m2 % of pop US$/m2 Million US$/ day US$ Mn Cotonou 4,564 1,369,326 475 78% 8,124 18.3 Porto Novo 8,405 2,521,530 475 78% 8,124 33.6 Parakou 2,444 733,326 475 78% 8,124 9.8 Subtotal 1 15,414 4,624,182 61.7 Subtotal 2 19.6 1.9 36.8 Total 98.5 Source: WDI (2011); and AGETUR et BOPEN (2012). 9. Component B is economically viable even when the ex-post benefits of the road subcomponent is not included in the economic analysis with a NPV reaching US$ 43.4 million with an ERR of 24% and a MERR of 18% and a PV B/C ratio of 2 (Table A3.5). 40 Table A3.5: Economic Analysis of Component B Key Economic Drainage Roads Component B Indicator Ex post Ex ante Ex Post Economic Analysis NPV (US$ million) 60.2 9.5 43.4 ERR 39% 24% 24% Modified ERR 27% NA 18% PV Benefit/Cost Ratio 3 >1 2.0 Viability Yes Yes Yes Economic Analysis for Component C - NPV, ERR, MERR and PV Benefit/Cost Ratio 10. The project dataset and economic analysis are illustrated in Tables A3.6 and A3.7 respectively. Only the access to water kiosk and latrine was considered in the economic analysis (see attachment for diarrheal risk reduction). Benefits have been considered for improved access to potable water kiosk and improved sanitation based on AGETUR et BOPEN (2012) and started accruing over the last 2 years of the project, and reached US$ 2.3 million per year. 11. All the costs associated with the component are considered in the economic analysis. Table A3.6: Dataset for the Economic Analysis of Component C Commune Cotonou Abomey Kandi Parakou Lokossa Porto Novo Total Calavi Population 172,735 148,725 1,593 101,681 27,181 110,227 562,142 PGUD2 Potable Water Use % 0% 0% 7% 3% 20% PGUD2 Potable Water Use # - - 12,264 4,664 - 34,547 51,475 # Under 5 2,087 794 - 5,879 8,759 # >= 5 10,177 3,870 - 28,668 42,716 PGUD2 Water Use % 28% 13% 5% 24% 0% 30% PGUD2 Water Use # 48,539 18,591 83 24,403 - 33,289 124,904 Sanitary Improvement % 44% 11% 0% 11% 0% 33% Sanitary Improvement # 76,694 16,508 - 11,287 - 36,706 141,195 # Under 5 13,051 2,809 - 1,921 - 6,246 24,027 # >= 5 63,643 13,699 - 9,366 - 30,459 117,168 Water and Sanitation Improvement # 34,547 29,745 319 20,336 5,436 22,045 112,428 # Under 5 5,879 5,062 54 3,461 925 3,751 19,132 # >= 5 28,668 24,683 264 16,876 4,511 18,294 93,297 Source: Tables A1.2 and A1.3; WDI (2011); UNICEF website: http://www.unicef.org/infobycountry/benin_statistics.html; and AGETUR et BOPEN (2012). 12. Component C is economically viable with a NPV reaching US$ 2.5 million with an ERR of 27% and a MERR of 20%, and a PV B/C ratio of 1.9. 41 Table A3.7: Economic Analysis of Component C Key Economic Component C Indicator Economic Analysis NPV (US$ million) 2.5 ERR 27% Modified ERR 20% PV Benefit/Cost Ratio 1.9 Viability Yes Economic Analysis for Component D - NPV, ERR, MERR and PV Benefit/Cost Ratio 13. The project economic NPV discounted at 10%, the benefit/cost ratio and the ERR are illustrated in Table A3.8. The dataset is developed in Attachment 1 with 1.1 million accruing in 2012 after the closing of the rehabilitation of 12 dumps and the avoided waste dumped from 40% increase in collection in Porto Novo over the project period. Naturally, not all benefits could be accounted for. Moreover, all the costs associated with the component are considered. Table A3.8: Economic Analysis of Component D Key Economic Component D Indicator Economic Analysis NPV (US$ million) -4.2 ERR -- Modified ERR -20% PV Benefit/Cost Ratio 0.2 Viability No 14. Component D is not economically viable with a NPV reaching US$ -4.2 million with a negative ERR and MERR, and a PV B/C ratio of 0.2. Most expenditures in terms of the rehabilitation of dumps are sink costs that will not generate any revenues and are due to past neglect. Moreover, by the end of the project, the target of 100% collection was not attained. Both factors contributed towards a negative ERR and MERR. Economic Analysis for the Entire Project - NPV, ERR, MERR and PV Benefit/Cost Ratio 15. The project economic NPV discounted at 10%, the benefit/cost ratio, the ERR and the MERR are illustrated in Table A3.9. Although the road subcomponent is not considered in the economic analysis, it is definitely positive based on the ERR at appraisal (24%) and the achievements that exceeded the planned road subcomponent (37 km instead of 22.4 km). Moreover, a lower weight was assigned to Component A as not all the increase in fiscal revenue is considered to be attributable to the project. 16. The project is economically viable with a NPV reaching US$ 96.4 million with an ERR and a MERR of 56% and 40% respectively and a PV B/C ratio of 1.4. No sensitivity analysis is needed as this is an ex-post evaluation with the benefits considered accruing during the implementation of the project (Table A3.9). 42 Nevertheless, with proper operations and maintenance, the benefits will keep on accruing over the next years. Table A3.9: Economic Analysis of the Entire Project Key Economic Indicator Component A Component B Component C Component D Entire Project Economic Analysis NPV (US$ million) 32.6 43.4 2.5 -4.2 96.4 ERR >100% 24% 27% -- 56% Modified ERR >100% 18% 20% -20% 40% PV Benefit/Cost Ratio 5.0 2.0 1.9 0.2 1.4 Viability Yes Yes Yes No Yes 43 Attachment I to the Economic Analysis A. Background 1. Financial analysis (i.e., commercial profitability analysis) and economic analysis (i.e., national profitability analysis) differ in several ways. The objective of commercial profitability analysis is to assess the net financial results of a project from the investor point of view, while the national profitability analysis aims to identify and measure the net economic benefits of the project from the society point of view. Moreover, commercial profitability analysis is based on prevailing market prices, while national profitability analysis is determined with the help of adjusted prices (i.e., shadow prices) that are deemed to be an approximation of true economic prices (reflecting the social opportunity cost). Similarly, for commercial profitability analysis, the time value of money is tackled by application of the private discount rate based on the prevailing interest rate of the capital market, while in the case of national profitability analysis, the social discount rate is applied, i.e., the rate at which Benin can borrow money taking into consideration the country risk. 2. Three to four indicators are usually considered in the economic analysis to determine the viability of the project: • The Net Present Value (NPV) which is the difference between the discounted total benefits and cost; • The Internal Rate of Return (ERR), which is the discount rate that zeroes out the NPV or, the interest rate that makes the NPV of all cash flows equal to zero. In other words, the ERR estimates the actual return on the project, expressed as a percentage or interest rate. • The modified Internal Rate of Return (MERR), which is the discount rate that zeroes out the NPV, considers that positive cash flows are reinvested at the country financing cost whereas the ERR assumes the project cash flows are reinvested at the rate of the ERR and therefore, the MERR more accurately reflects the cost and financial viability of a project; and • The Benefit-Cost Ratio, which is the ratio of the present value (PV) of benefits over the PV of costs over the lifetime of the project. Sometimes the Benefit-Cost Ratio is based on undiscounted benefits to costs, but this is a less useful measure. B. Economic Analysis Process 3. The major difference between the financial and economic analysis is that the economic analysis consists in eliminating all the distortions of prices on the inputs used for the solid waste management process. There is therefore a need to identify and quantify price distortions that affect the operating expenditures as well as the investments. The evaluation of these distortions makes it possible to rectify the financial prices and to obtain the economic prices. From the corrected structure of the economic prices, the revaluation coefficients were estimated. 44 4. By looking at the social profitability of a project, shadow prices" or "opportunity costs are used in an economic analysis instead of market prices (real) that will help determine the social profitability of an investment. Shadow prices are adjusted in the following way: • Determination of Price Distortions. The conversion of the financial costs into economic costs is essential to reflect the value of the output for the community. The objective of this calculation is to determine the opportunity costs of both the inputs and outputs. As taxes, duties and especially subsidies such as for electricity constitute internal flows in the national economy, those were not taken into account in the calculation of the economic costs. A current subsidy runs at 120% of cost recovery of the Energy utilities is used to adjust OMEX for energy prices. 11 • Transportation costs should be increased by 200% increase for OMEX transportation prices as most petroleum products were subsidized and smuggled from Nigeria. 12 • Equipment, Goods and Infrastructure. A conversion factor of 0.85 has been applied to calculate the economic costs of equipment, goods and infrastructure in order to deduct from them the included taxes (construction). • Labor. The wages applied for unqualified skills is the minimum wage without the social contribution. For the skilled job salaries, the conversion factor is taken equal to 1 but the social contributions are not considered. Moreover, most labor needed for the whole project and other activities are assumed to be locally hired. Table A3.10: Conversion factors for the economic analysis Category Factor Energy 1.2 Services 1 Transport Fuel 2 Equipment, Goods and Infrastructure 0.85 Labour 1 after netting for social cost (12.25%) Medical cost 5% + Transportation cost (5%) Salaries 1 after netting for social cost (12.25%) Medical cost 5% + Transportation cost (5%) The conversion factors used are summarized in Table A1.1. The conversion factors used are summarized in Table A1.1. 5. A number of additional key assumptions has been considered for the economic analysis: • A real discount rate of 10% per annum is used for the economic analysis and 10% for the modified ERR 11 IMF (2012). 12 Ibid. 45 • The right-of-way including the price of land and any structures upon it is not accounted in the analysis • Benefits are assumed to accrue over project implementation (see Table A1.3) at various periods Risk Reduction for the Water Kiosk and Sanitation As many of the benefits of reliable and improved water supply and improved sanitation are difficult to quantify, the economic analysis is limited to: − reduced incidence of diarrheal disease; − reduced mortality from diarrheal disease; and − reduced mortality from infectious diseases associated with improved nutritional status in young children from reduced incidence of diarrhea. Some clarification of these expected disease and mortality reductions are warranted. It is considered that people without proper potable water and unimproved sanitation represents 20% of the total population surveyed in the 6 communes. A 60% reduction in disease and mortality is expected from having access to kiosk water and improved sanitation. 13 Table A3.11: Diarrheal morbidity and mortality reduction Current water Population Water and sanitation Expected average reduction in supply and distribution improvement diarrheal disease and mortality sanitation without coverage Already good Substantial scope for coverage hygiene hygiene improvement Potable water 9% Sanitation 25% Potable water and Reliable kiosk potable water 20% 45% 75% sanitation and improved sanitation Mid-point reduction 60% Source: Bassi et al. (2011); and AGETUR et BOPEN (2012). Table A3.12: Gains associated with access to water kiosk and improved sanitation, 2010 Population 2006 Reduction Reduction Reduction of Value per Benefits for each of diarrhea of cases of case of 2011 and 2012 coef. mortality diarrhea due to diarrhea # # # US$ US$ Million Without access to potable water and 112,428 improved sanitation 13 Bassi et al. (2011). 46 Crude birth rate (Number of new 40 10 28 62,855 1.8 borne per 1000 inhabitants) Population < 5 years 19,132 2.5 47,830 7 0.4 Population ≥ 5 years 93,297 0.5 46,649 4 0.2 Total 2.3 Note: the value of statistical life is used for premature death and is derived from Bassi et al. and adjusted by the GDP differential denominated in $PPP. Sources: adapted from Bassi et al. (2011); World Development Indicators (2011); and AGETUR et BOPEN (2012). Clean-up Cost The following assumptions are used for the avoided cost of cleaning up the waste discharged from improving the collection of 40% of the population (25% at the onset and 65% at the end of the project): • The depth of discharge is from 1 meter. • The average density of waste dumped is 340 kg /m³. • Reducing the volume through the wildfires in landfills is 2/3 leaving a balance of 1/3. The total municipal waste generated per year is used in the economic analysis. These wastes have the potential to pollute (65,405 t) * 1/3 * 1/340 =12,000 m2. To clean the dumps, CFA 7.6 m3 per ton (1 m2 per 1 m depth) was adopted. The avoided cost of cleaning up is US$ 93,433 in 2012. . Hedonic pricing of land around the landfill The hedonic pricing model is widely accepted as a method for estimating the spatially delineated disamenities. Although there is no such study that was performed in Benin, a benefit transfer was applied on a study that derived very conservative results. 14 The 12 dumpsters were considered as circles to derive the first ring and the second ring of the decrease in land value: ± 15% reduction in land prices up to 30 m in circumference around the landfill, and ± 10% reduction in prices land in a circumference of 30 to 100 m around the landfill. The cost per m2 was very conservative and set at CFA 10,000 whereas each dumpster area was estimated at 7,000 m2. The results are illustrated in Table A1.4. The benefits accrue at the end of each phase and are considered for only one year. The benefits amount to US$ 1.02 million. 14 Nelson (1978). 47 Table A3.13: Hedonic Method around cleaned up dumps Area Type m2 D2=A/Pi/4 Diameter Radius Radius 1 Radius 2 Area 1 Area 2 Losses 1 Losses 2 US$/M2 Losses 1 15% US$ Losses 2 10% US$ Dump 7000 8,913 94 47 77 116 18,725 2,422 11,725 23,697 21 36,256 48,849 Dump 7000 8,913 94 47 77 116 18,725 42,422 11,725 23,697 21 36,256 48,849 Dump 7000 8,913 94 47 77 116 18,725 42,422 11,725 23,697 21 36,256 48,849 Dump 7000 8,913 94 47 77 116 18,725 42,422 11,725 23,697 21 36,256 48,849 Dump 7000 8,913 94 47 77 116 18,725 42,422 11,725 23,697 21 36,256 48,849 Dump 7000 8,913 94 47 77 116 18,725 42,422 11,725 23,697 21 36,256 48,849 Dump 7000 8,913 94 47 77 116 18,725 42,422 11,725 23,697 21 36,256 48,849 Dump 7000 8,913 94 47 77 116 18,725 42,422 11,725 23,697 21 36,256 48,849 Dump 7000 8,913 94 47 77 116 18,725 42,422 11,725 23,697 21 36,256 48,849 Dump 7000 8,913 94 47 77 116 18,725 42,422 11,725 23,697 21 36,256 48,849 Dump 7000 8,913 94 47 77 116 18,725 42,422 11,725 23,697 21 36,256 48,849 Dump 7000 8,913 94 47 77 116 18,725 42,422 11,725 23,697 21 36,256 48,849 435,068 586,188 Total 1,021,255 Source: Nelson (1978). 48 Annex 4. Bank Lending and Implementation Support/Supervision Processes (a) Task Team members Responsibility/ Names Title Unit Specialty Lending Hugues Agossou Sr Auditor IADVP Aurore Amour Assogba E T Temporary AFMBJ Itchi Gnon Ayindo Senior Procurement Specialist AFTPW AFTU2 - Patrick Bultynck Consultant HIS Alison C. N. Cave Coordinator CRS Alexandre K. Dossou Sr Transport. Spec. AFTTR Luigi Giovine Lead Operations Officer AFCC2 Sophie Hans-Moevi Program Assistant MNSSD Remi Kini Senior Environmental Economist ENV Bachir Oloude Consultant AFMBJ Eustache Ouayoro Country Director AFCC2 June Taboroff Consultant ECSSD AFTU2 - Denise R. Vaudaine Consultant HIS Ramanatou Zime Disbursement Asst. AFMBJ Supervision/ICR ICR Primary Salim Rouhana Urban and Regional Dev. Specialist AFTU2 Author Fadi Doumani Consultant Co-Author Sylvain Adokpo Migan Water & Sanitation Specialist TWIAF Hugues Agossou Sr Auditor IADVP Yao Badjo Senior Infrastructure Specialist AFTU1 Franck Bousquet Sector Manager MNSSD Zie Ibrahima Coulibaly Senior Infrastructure Specialist AFTU2 Alexandre K. Dossou Sr Transport. Specialist AFTTR Christian Vang Eghoff Consultant AFTU2 Daria Goldstein Senior Counsel LEGAM Augustin Gounon Office Assistant AFMBJ Sophie Hans-Moevi Program Assistant MNSSD Alain Hinkati Financial Management Specialist AFTMW Maman-Sani Issa Senior Environmental Specialist AFTN2 Amadou Konare Consultant AFTEW Sylvie Nenonene Communications Officer AFRSC Africa Eshogba Olojoba Senior Environmental Specialist AFTN1 Pepita Hortense C. Olympio Team Assistant AFMBJ Isabelle Paris Senior Environmental Specialist CESI2 Quentin Roquigny Consultant AFMBJ Abdoul-Wahab Seyni Senior Social Development AFTCS 49 Specialist Chantal Leontine Tiko Program Assistant AFMTG Armele Vilceus Senior Executive Assistant LCC3C Aissata Z. Zerbo Procurement Specialist AFTU2 (b) Staff Time and Cost Staff Time and Cost (Bank Budget Only) In thousands of Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Lending FY04 15.52 75.02 FY05 56.18 243.27 FY06 33.70 98.75 Total: 105.40 417.04 Supervision/ICR FY06 0.00 5.62 FY07 39.02 134.00 FY08 21.24 115.94 FY09 27.37 172.54 FY10 30.74 146.60 FY11 21.70 106.61 FY12 19.92 115.37 FY13 Total: 159.99 796.68 50 Annex 5. Summary of Borrower's ICR and/or Comments on Draft ICR The Government of Benin concluded an agreement with the World Bank for the implementation of the Decentralized Urban Management Project (PGUD-2). This project received funding in two stages after the initial credit was found to be insufficient to cover the priorities identified:  The initial credit of the IDA Credit Agreement, 4117- BEN, entered into force on March, 8 2006. The total cost of the Project was US$37.6 million, and may be broken down as follows: (i) World Bank: US$35 million; (ii) State of Benin: US$1.4million and (iii) municipalities: US$1.2 million.  Additional funding from the IDA Credit Agreement, 4490 BJ, entered into force on June 16, 2009. The total amount is US$47.09 million, broken down as follows: (i) World Bank: US$40 million; (ii) State of Benin: US$4.730 million; (iii) municipalities: US$2.360 million. PGUD-2 (initial and additional) should have ended on 31st December 2010, but was first extended to March 31, 2012, then to June 30, 2012. PGUD-2 additional financing is intended to strengthen component B of the initial credit in cities with a special status, such as Cotonou, Porto- Novo, and Parakou. Project management for these operational components was delegated to two agencies, which divided the tasks as follows: - SERHAU-SA for components A, C and part of component D; - AGETUR-SA for component B and part of component D. A. Project Outputs: After six years of project implementation, the results are as follows: Component A results: The implementation of this component focused mainly on the preparation of numerous studies and the training and provision of equipment to the various stakeholders involved in the project. All of the activities planned for this component, with the acquiescence of the World Bank, were implemented. The sole exception was the study on the development strategy for the urban sector, which was postponed and will now be conducted as part of the next urban project currently under preparation. The following studies, among others, have been undertaken:  Studies on local revenues: They have resulted in more efficient organization of the fiscal and non-fiscal system and yielded positive results in terms of increased resources for municipalities. These studies have also facilitated the adoption of procedural manuals on financial management and modern accounting methods, thereby improving municipal governance;  Studies on procedures and institutional organization: As a result of these studies, new organizational charts have been developed, with a clearer delineation of functions, and career profiles which take account of the interests and expectations of staff members. Since the introduction of the organizational charts, municipalities have been able to increase staff numbers, following a quite rigorous recruitment process; 51  Technical studies on infrastructure, civil engineering and the environment. These studies have led to plans to undertake new construction work and sanitation infrastructure, drainage and waste collection in beneficiary communities, as well as community infrastructure, such as water kiosks and classroom modules. A national waste management strategy was developed to define the guiding principles and strategic guidelines, as well as the management options for this sector;  Study on records management: as a result of this study, municipalities have been equipped with modern and well-appointed registries which meet the main criteria for records management. Archivists have been recruited and members of the mission noted that documents in the municipal offices visited have been properly handled;  Studies on central administration: These studies on capacity-building in central and decentralized State services (MUHRFLEC, MEF, MDGLAAT, MPDEAP, MEPN) and the CPS/PGUD-2, were aimed at a more efficient coordination of activities on the ground;  Fight against HIV/AIDS: The studies facilitated the development of a plan of action to step up the fight against the HIV/AIDS pandemic in urban centers and in municipalities with a special status. In addition to the studies, component A provided financial resources for the extensive training of stakeholders involved in project implementation. The various beneficiaries (municipalities, ministries, CPS/PGUD-2) were provided with office supplies and equipment, such as vehicles, motor cycles, IT material, office furniture, etc. Component B results:  Studies: Consultancy services include the various activities associated with project implementation, namely: (i) engineering studies; (ii) missions to monitor and control implementation of works, (iii) environmental and social impact assessment; and (iv) technical assistance to SMEs which have been awarded contracts for works and for various specific tasks.  Works: In accordance with the initial Credit Agreement (Credit 4117-BEN), paving and drainage works were planned for the following cities : Cotonou, paving and drainage over a distance of 4.5 km, Porto-Novo (1.8 km), Parakou (8.8 km), Abomey-Calavi (3 km), Kandi (2.4 km), and Lokossa (1.9 km). The additional financing agreement (Credit 4490-BJ), provided for the completion of at least 9.6 km of urban roads and 10.8 km of drainage networks in the main cities. That amounts to a total of 32,000 ml of paved roads and 15,100 ml of drains (initial credit and additional financing). As of June 30, 2012, the following had been achieved as a result of PGUD-2:  37 633 ml of paved roads,  1 335.33 ml of macadamized roads,  45 500 ml of secondary drains,  15 414 ml of primary drains 52 There have been a number of delays in the execution of these projects because of difficulties in accessing counterpart funds from municipalities and particularly the State. Delays were also attributed to insufficient equipment and the inexperience of some enterprises. External factors, such as rain and the lack of cement, also contributed to the delay. Actions under PGIE and PARC were on the whole well executed. Indeed, the targets for this component have been surpassed. Component C results: The following activities are included under this component: (i) Technical studies on the execution and monitoring of a number of construction projects; (ii) Studies on the establishment of bodies, such as the neighborhood development committees; (iii) equipment and supplies; (iv) works.  Studies realized: All the planned studies were carried out. Technical studies dealt with the definition of an architectural plan to harmonize the lifestyles of the beneficiaries with their actual surroundings.  Studies on the establishment of neighborhood development committees: As a result of these studies, it was possible at the end of PGUD-2 to set up 14 neighborhood development committees (CDQs) in six municipalities, which enjoy the strong support of support services for community initiatives – SAIC – established in these municipalities. The SAICs have, in collaboration with the CDQs, participated actively in the development of local projects, and in the implementation of re-installation plans. It must be emphasized that local monitoring committees – CLS – also play an important role. These committees are chaired by the General Secretaries of the municipalities involved, whose role is to supervise implementation of the projects at the local level.  Works carried out: Rehabilitation work was carried out to the social and economic infrastructure in disadvantaged neighborhoods targeted by the project. These included, in particular, primary schools; primary health care centers; small shops and markets; water kiosks; community development centers; and latrines and public squares. Component D results: Under this component, the following projects were realized: (i) technical and environmental studies and a strategic plan of action for solid waste management; (ii) infrastructure development; (iii) capacity building; and (iv) supplies and equipment.  Studies: Several studies have been conducted. These include technical missions on the implementation, monitoring, and oversight of works, which have facilitated the completion of the works envisaged under this component.  Capacity building: The following activities were carried out: (i) establishment of a solid waste management unit; (ii) provision of equipment for the unit; (iii) training of garbage collectors, landfill operators, and municipal service personnel involved in the management of solid waste.  Development of a Strategic Plan of Action for solid waste management. At the start of the plan, a landfill site was selected, and during its initial phase, a complete evaluation of the environmental and social effects was carried out and an awareness-building program implemented.  Infrastructure projects: The following activities were carried out : (i) destruction of open dumpsites; construction of nine of 12 planned waste collection centers ; (iii) purchase of 42 garbage skips; (iv) construction of the Takon landfill ; (v) building of 53 schools, a health center, recreation area, installation of a system for piped water, electrification and the improvement of the Aidjèdo access road. All these support infrastructure projects were covered by funding provided for the construction of the Takon landfill. B. Outcomes and Impact of the Project: Component A: By focusing on the strengthening of the management capacity of the municipalities, the PGUD-2 project produced the following results: All municipalities, without exception, have seen a significant rise in the level of their resources. The use of the procedural manual has facilitated the rapid processing and more efficient dissemination of information. The adoption of a new organizational chart has helped to better define the attributes and responsibilities of staff members, thereby minimizing conflicts. The provision of new equipment and supplies helped to modernize working methods and improve working conditions. Reports are of a higher standard and now produced in record time. Visits by agents to municipal project sites are more frequent. Indeed, PGUD-2 has helped to increase efficiency and effectiveness in the systems and processes of urban governance and has improved revenue generation. Component B: The construction and installation of basic infrastructure has produced the following benefits: the creation of new jobs; the incentivization of the private sector; protection of the population against flooding; and favorable economic spin-offs. There have also been improvements in public health, particularly among the most vulnerable (children and the elderly). Social communication has been enhanced, as residents have gained easier access to municipal and State services, following the “opening up” of communities as a result of road improvement. Social cohesion has also increased due to the implementation of community projects, such as waste management and sanitation. Component C: The following positive results from the encouragement of initiative and a participatory approach in grass-roots communities are worthy of note: Renewed confidence on the part of the population of grass-roots communities due to their involvement in decision-making on priority infrastructure projects (schools, health centers, community development centers, markets, water kiosks, etc.), in a context where projects are often developed without taking into account the needs of beneficiaries, simply because they have not been consulted or involved in the project; Creation of a participatory approach dynamic: The creation of CDQs and SAICs favors this dynamic, which is a key factor in promoting stakeholder buy-in and the sustainability of the project. Component D: PGUD-2 has contributed to promoting a healthy environment and ensuring disease prevention in the city of Porto-Novo through the following initiatives: the strategic waste management plan, destruction of open dumpsites, and rehabilitation of former garbage collection centers, development of new sites and construction of the technical landfill center for solid waste. 54 C. LESSONS LEARNED AND RECOMMENDATIONS C.1. Lessons Learned Almost all performance indicators have been met and exceeded, thus confirming the outstanding success of PGUD-2. The following lessons learned should be analyzed with a view to applying them to future projects.  Coherent programs and efficient organization are essential to achieve success in urban development;  Implementation of PGUD-2 has shown that three key ingredients must be present if the desired objective is to be attained: (i) a project which is in keeping with the real needs of the beneficiaries; (ii) a project developed with the participation of the beneficiaries; (iii) A project that satisfies professional, technical, and financial standards. The involvement of technical bodies, such as AGETUR and SERHAU, under the coordination of CPS/COSUCO in a successful partnership, has without a doubt been one of the main reasons for the success of the Project;  Good project management is an asset for the State, in that it helps to strengthen the interest of donors to continue to provide financial support;  Non-adherence to commitments for the implementation of the Counterpart Fund in PGUD-2 is a disincentive to the private sector as a key stakeholder in urban development. Furthermore, it causes construction delays and escalating costs, to the detriment of the beneficiaries ;  The technical agencies have involved beneficiary municipalities as Project Managers in the preparation of annual programs, the procurement of contracts, and the monitoring of project implementation. This has had the effect of helping to guarantee effective stakeholder ownership of the works carried out;  With regard to a participatory approach to encourage grass-roots involvement in project conception and implementation, the following observations may be made: • In interaction with a number of CDQs, members of the mission observed that the participatory approach involves many stakeholders who are given responsibilities for which they have not always been sufficiently prepared. Sufficient time must therefore be allowed to enable stakeholders to build professional relationships of trust and acquire the technical and organizational skills necessary to implement a project. This lesson is all the more valid where there has been no tradition of collective or participatory action, and where it is necessary to create a local dynamic along the lines of the CDQs. • In order for local residents to gain ownership of a project, their involvement must begin in the earliest possible stages, through representatives who are widely known and respected throughout the community. It should be possible for them to acquire greater responsibilities over time, to move, for example, from a simple advisory role to more active involvement in joint management of the project. • Although CDQs have limited budgets, they are nevertheless an effective means of ensuring extensive and well-coordinated representation of the different needs of a community. The CDQs should therefore be encouraged and mobilized through 55 subsidies, revenue-generating activities and training for capacity- building. They, in turn, will be able to mobilize individuals and ensure that the projects are perceived as sustainable by the population, local authorities, and stakeholders.  The flexibility, professionalism and adaptability of the World Bank Team has made it possible to maintain an ongoing and constructive dialogue, to the overall benefit of the project;  Commitment and empowerment of national stakeholders are essential to ensure the success of a project. C.2. Recommendations In view of the overwhelming needs in urban development and the positive results obtained in the implementation of PGUD-2, the partnership between the Government of Benin and the World Bank must be strengthened. Furthermore, the new project should include the following aspects which were insufficiently taken into account in PGUD-2:  The culture of maintenance/upkeep. Infrastructure maintenance must be taken into account as soon as contractual documents are drawn up and signed. The mission observed cracked tiles, and noticed that the grills of a number of garbage collectors had been removed, leaving gaping holes that if not replaced, could pose a danger for the security of children and the population in general. In the future, consideration must be given to using grills that residents would find extremely difficult to remove, as well as more resistant tiles. Such a practice would reduce maintenance costs for cash-strapped municipalities. An incentive system should also be introduced for those municipalities that carry out regular, professional maintenance of their infrastructure.  The private sector. For the PGUD-2 project, companies procured contracts on the basis of public tenders. These contracts were awarded to the most economically advantageous bids, following an analysis of the company’s technical capacity and the conformity of the tender with specifications included in the contractual terms and conditions. Often, companies make bids that are abnormally low and thereby secure the contract. However, they encounter great difficulty in completing construction works, due to poor workmanship. This has negative repercussions on the quality and durability of the work. The World Bank mission believes that while scrupulously observing the principles for the procurement of public contracts, one may consider the possibility of breaking down public construction works into smaller contracts (small, medium-sized, large) and demanding that technical criteria and equipment are adapted to the size of each contract. This will allow for healthy competition and higher construction standards. No provision was made in the project for training and retraining the contractors involved in the project. Training in new approaches and technologies in the construction and civil engineering sector would contribute greatly to enhancing professionalism and quality in construction. In a further bid to improve quality, a system of rewards for excellence could be implemented using a transparent and participatory process. This could help to create healthy competition within the sector. Moreover, failing enterprises could be blacklisted. 56 With regard to funding, it would be desirable for the World Bank to provide funding to cover all of the operations of the enterprises, thereby preventing their dependence on counterpart funds. It is illogical to try to stimulate the private sector, while depriving them of a part of their much needed profits, in favor of the State.  Counterpart funds. Due to the many obligations of the State, the use of counterpart funds has posed a problem and will continue to do so. Experience on the Takon construction site, where disbursement of World Bank funds was conditional on the availability of counterpart funds, is an option that could be explored, as a means of encouraging the State to fully assume its responsibilities.  Building the capacity of municipal agents. One of the key areas where one would be well advised to continue actions undertaken in PGUD-2 is in the implementation of systems and practices of good governance. This may be achieved by strengthening the capacity of agents in planning/programming, conducting fiduciary scrutiny, monitoring to ensure transparency in management practices, maintenance, etc. Capacity building in municipalities is a key factor, and is of interest to more than one country in the sub-region. The creation of a Regional School of Municipal Management in Porto-Novo or elsewhere in the region would be beneficial on several counts, because of the economies of scale and the advantages that it would engender. The benefits created would be for donors as well as for the States in the sub-region.  Revenue-generating activities in municipalities. Infrastructure development calls for extensive and long-term funding, a situation which neither municipalities nor commercial banks can sustain. This sector will therefore be dependent on funding from its Technical Partners for a long time to come. Municipalities can, however, initiate short and medium-term revenue-generating projects, with the help of commercial banks. Technical assistance extended to the municipalities to help them identify such projects and funding sources for their implementation could contribute to their progressive ownership and control.  Replicating some of the successes of PGUD-2 in other municipalities. Synergy must be created among government institutions to exploit some of the gains that could be replicated at a lesser cost in other municipalities that have not as yet benefitted from projects such as PGUD-2. CONCLUSION After six years, it must be noted that PGUD-2 has brought about significant changes in those cities where it was implemented, as well as in the lives of the residents. These changes have been positive. Firstly, if one examines the relevance of the projects, one may recall that the targeted neighborhoods had been prone to flooding and isolated, with very few of the basic social services. An examination of the objectives of the project will reveal that it has brought about new faith and confidence within the municipalities and changed the face of several neighborhoods. As far as the impact of the project is concerned, it has improved the lives of residents and reduced some sources of day-to-day inconveniences. It has also, among others, led to a significant increase in municipal resources and created a participatory community dynamic. The PGUD-2 has therefore been entirely satisfactory in: (i) its overall implementation; (ii) financial and technical management; (iii) its adherence to the procedures for granting contracts; (iv) follow-up and evaluation of performance indicators; and (v) its impact on beneficiaries. 57 There has been one drawback, however. Due to delays in disbursement, counterpart funds from the municipalities, and especially from the State, have tended to hold up the implementation of the project, but have not compromised the project itself. 58 Annex 6. List of Supporting Documents Type of document Report No. Date Project Appraisal Document 33375-BJ August 22, 2005 Development Credit Agreement (Cr. 4117- November 3, 2005 BEN) Project Agreement (AGETUR) Cr. 4117-BEN November 3, 2005 Project Agreement (SERHAU) Cr. 4117-BEN November 3, 2005 Project Paper (Additional Financing) Cr. 4490- 43081-BJ May 21, 2008 BJ Financing Agreement (Additional Financing) September 12, 2008 Cr. 4490-BJ Project Agreement (Additional Financing) – September 12, 2008 AGETUR Cr. 4490-BJ Restructuring Paper 55032-BJ June 15, 2010 Restructuring Paper 62722-BJ June 27, 2011 Restructuring Paper 65871-BJ June 28, 2012 Amendment to Development Credit Agreement June 29, 2012 Cr. 4117-BEN Amendment to Financing Agreement Cr. 4490- June 29, 2012 BJ ISR Aide-Memoires Technical Audit 2010-2012 September 2012 Technical Audit for components managed by May 2012 PGUD-2 gérées par l’AGETUR Supervision mission - socio-economic and April 2012 environmental PGUD-2 Independent Evaluation – Implementation September 10, 2012 Completion and Results Report PGUD-2 Other references Benefit Assessment Manual for Policy Bassi, S. (IEEP), P. ten 2011 Makers: Assessment of Social and Brink (IEEP), A. Farmer Economic Benefits of Enhanced (IEEP), G. Tucker (IEEP), Environmental Protection in the ENPI S. Gardner (IEEP), L. countries. A guiding document for the Mazza (IEEP), W. Van project ‘Analysis for European Breusegem (Arcadis), A. Neighborhood Policy (ENP) Countries Hunt (Metroeconomica), M. and the Russian Federation on social Lago (Ecologic), J. and economic benefits of enhanced Spurgeon (ERM), M. Van environmental protection. Acoleyen (Arcadis), B. Larsen and, F. Doumani. Residential choice, hedonic prices, and Nelson, Jon P. 1978 the demand for urban air quality. Journal of Urban Economics 5 (3): 357- 369 World Development Indicator. World Bank 2011 59 IBRD 33777R 0° 1°E 2°E 3°E 4°E To To Dosso Sokoto N IG ER RI NIGER VE R 12°N BURKINA u BENIN FASO ro Mék Pendjari Alibori s in ta KANDI To n Dapaong u o Sota ri 11°N M 11°N nja ALIBORI Pa u ro ék M ra o ATA K O R A k ta A Lake Kainji Natitingou é sin s Ta Kou m ong ou 10°N 10°N O BORGOU Djougou ué mé To NIGERIA Kaiama ra pa To PARAKOU Ok Kabou DONGA Alpouro 9°N 9°N TOGO 0 20 40 60 80 100 Kilometers 0 20 40 60 Miles GHANA COLLINES 8°N 8°N Savalou 4°E Zou BENIN SECOND DECENTRALIZED émé CITY MANAGEMENT PROJECT Ou PLATEAU ADDITIONAL FINANCING Cou Z O U ffo PROJECT CITIES ADDITIONAL AND Abomey ORIGINAL FINANCING COUFFO PROJECT CITIES ORIGINAL 7°N 7°N FINANCING ONLY To Notsé DEPARTMENT CAPITALS OUEME Dogbo NATIONAL CAPITAL Sakété To M O N O ATLANTIQUE Ibadan RIVERS This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information ABOMEY-CALAVI MAIN ROADS shown on this map do not imply, on the part of The World Bank LOKOSSA Group, any judgment on the legal status of any territory, or any RAILROADS Mono endorsement or acceptance of such boundaries. Ouidah To PORTO NOVO DEPARTMENT BOUNDARIES Lomé LITTORAL COTONOU INTERNATIONAL BOUNDARIES 0° 1°E 2°E 3°E Gulf of Guinea MARCH 2008