report no: 18645 lac project appraisal document public … · 2016. 7. 17. · report no: 18645 lac...

Document ofThe World Bank

Report No: 18645 LAC

PROJECT APPRAISAL DOCUMENT

FOR PROPOSED CREDITS (2) AND LOANS (3)IN THE AMOUINT OF SDR 4 MILLION AND US$14.07 MILLION RESPECTIVELY

TO

THE COMMONWEALTH OF DOMINICA, ST. KITTS & NEVIS,AND ST. LUCIA

IN SUPPORT OF THE FIRST PHASE OF THE

ORGANIZATION OF EASTERN CARIBBEAN STATESEMERGENCY RECOVERY AND DISASTER MANAGEMENT PROGRAM

December 2, 1998

Fmance. Private Sector, and Infrastructure UnitCaribbean DepartmentLann America and the Caribbean Regional Office

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CURRENCY EQUIVALENTS(Exchange Rates Effective December 1998)

Currency Unit = Eastern Caribbean Dollars (EC$)EC$ 1.0 = US$ 0.37US$ 1.0 = EC$ 2.7

FISCAL YEAR

January 1- December 31

ABBREVIATIONS AND ACRONYMS

APL Adaptable Program Lending (World Bank)CARICOM Caribbean Community and Common MarketCAS Country Assistance Strategy (World Bank)CDB Caribbean Development BankCDERA Caribbean Disaster Relief AgencyEU European UnionFEMA U.S. Federal Emergency Management AgencyIBRD International Bank for Reconstruction and Development (World Bank)ICB International Competitive BiddingIDA International Development Association (World Bank)NCB National Competitive BiddingNEAP National Environmental Action PlanNMS National Meteorological ServiceOAS Organization of American StatesODP Office of Disaster PreparednessOECS Organization of Eastern Caribbean StatesOFDA U.S. Office of Foreign Disaster AssistanceO&M Operations and MaintenancePAHO Pan American Health OrganizationPCU Project Coordination UnitTOR Terms of ReferenceUSAID United States Agency for International DevelopmentWTO World Trade Organization

Vice President: Shahid Javed BurkiCountry Director: Orsalia Kalantzopoulos

Sector Director: Daniel M. LeipzigerTask Team Leader: Eugene D. McCarthy

,ii IFOR OFFICIAL USE ONLY

Organization of Eastern Caribbean StatesEmergency Recovery and Disaster Management Program

CONTENTS

A: Program Purpose and Project Development Objectives .................................................. 31. Program purpose and program phasing: ................................................. 32. Project development objectives: .................................................. 43. Key performance indicators: ................................................. 4

B: Strategic Context .................................................. 61. Sector-related CAS goal supported by the program .................................................. 62. Main sector issues and Government strategy .................................................. 63. Sector issues to be addressed by the program and strategic choices .......................................94. Program description and performance triggers for subsequent loans .................................... 10

C: Project Description Summary ................................................. 121. Project components ................................................. 122. Key policy and institutional reforms supported by the program ............................................ 143. Benefits and target population ................................................. 144. Institutional and implementation arrangements ................................................. 14

D: Project Rationale ................................................. 161. Project alternatives considered and reasons for rejection: ................................................. 162. Major related projects ................................................. 163. Lessons learned and reflected in the project design .................................... 174. Indications of borrower commitment and ownership .................................... 185. Value added of Bank support in this project .................................... 18

E: Summary Project Analysis ................... 201. Economic ................... 202. Financial ................... 203. Technical ................... 204. Institutional ................... 205. Social ........................ , 216. Environmental assessment .217. Participatory approach .21

F: Sustainability and Risks .221. Sustainability: .222. Critical Risks .223. Possible Controversial Aspects: .23

G: Main Loan Conditions .231. Effectiveness Conditions: .232. Other.23

H. Readiness for Implementation .23I. Compliance with Bank Policies. 25

This document has a restricted distribution and may be used by recipients only in theperformance of their official duties. Its contents may not otherwise be disclosed withoutWorld Bank authorization.

iv

ANNEXES

Annex 1 Program Design Summary .................................................... 26Annex 2 St. Kitts and Nevis ................................................... 28

Annex 2A Detailed Project Description .29Annex 2B Estimated Project Costs .37Annex 2C Project Management and Implementation .38Annex 2D Project Progress Indicators .39Annex 2E Procurement and Disbursement Arrangements .40Annex 2F Statement of Loans and Credits .43Annex 2G Country at a Glance .44

A nnex 3 St Lucia ........................................................................................................... 46Annex 3A Detailed Project Description .47Annex 3B Estimated Project Costs .55Annex 3C Project Management and Implementation .56Annex 3D Project Progress Indicators .57Annex 3E Procurement and Disbursement Arrangements .58Annex 3F Statement of Loans and Credits .61Annex 3G Country at a Glance .62

A nnex 4 Dom inica ........................................................................................................... 64Annex 4A Detailed Project Description .65Annex 4B Estimated Project Costs .72Annex 4C Project Management and Implementation .73Annex 4D Project Progress Indicators .74Annex 4E Procurement and Disbursement Arrangements .75Annex 4F Statement of Loans and Credits .78Annex 4G Country at a Glance .80

Annex 5 Project Processing Schedule ................................................... 81Annex 6 Economic Developments and Bank Program Implementation ............................... 82


Project Appraisal Document

Latin America and the Caribbean RegionCaribbean Department

Date: December 2, 1998 Task Team Leader/Task Manager: Eugene D. McCarthyCountry Manager/Director: Orsalia Kalantzopoulos Sector Manager/Director: Daniel M. LeipzigerProjectIID: 60-PA-62668 Sector: Multi-sectoral Program Objective Category:Lending Instrument: Adaptable Program Loan (APL) Program of Targeted Intervention: []Yes [ *] No

PROGR FINANCING DATA |IBRD IDA Govt Co-financiers TOTAL

US$m % US$m % US$m % US$m % USsmAPL I St. Kitts & Nevis 8.50 85% 1.08 10% 0.50 5% 10.08

St. Lucia 3.04 39% 3.00 39% 1.14 15% 0.50 7% 7.68Dominica 2.53 41.5% 2.50 41.5% 0.50 8.3% 0.50 8.3% 6.03APL 1 SUB-TOTAL 14.07 59% 5.50 23% 2.72 11.4% 1.50 6.3% 23.79

APL 2 St. Vincent & the Grenadines 2.0 42% 2.0 42% 0.75 16% 4.75Grenada 1.0 43% 1.0 43% 0.35 15% 2.35APL 2 SUB-TOTAL 3.00 42% 3.00 42% 1.10 16% _ 7.10

APL 3 Additional physical 5.0 42% 5.0 42% 2.0 16% 12.0investments & institutionalstrengthening

APL 4 Contingency Funding 5.0 42% 5.0 42%/o 2.0 16% _ 12.0PROGRAM 27.07 49% 18.50 34% 7.82 14.5 1.50 2.5% 54.89

PROJECT FINANCIAL DATA [A] IBRD [A] IDA [] Guarantee 1 Other[SpecilylFor IBRD Loans:Amount (US$m): 14.03Proposed terms: [] Multicurrency [.] Single currency, specify (US$)

Grace period (years): 3 [] Standard Variable [.] Fixed [] LIBOR-basedYears to maturity: 15Commitment fee: 0.75%

Front-end fee: 1%For IDA Credits:Amount (SDRm): 4 million (US$5.5 million equivalent)Proposed terms: Standard IDA [] Multicurrency

Grace period (years): 10 [I Standard VariableYears to maturity: 35Commitment fee: 0.5%

Service charge: 0.75%

Government - St. Kitts & Nevis 1.08Government - St. Lucia 1.15Government - Dominica 0.63

Subtotal: OECS Governments 2.86IDA - St. Kitts & Nevis 0.00IDA - St. Lucia 3.00IDA - Dominica 2.50

Subtotal: IDA 5.50IBRD - St. Kitts & Nevis 8.50IBRD - St. Lucia 3.03IBRD - Dominica 2.50

Subtotal: IBRD 14.03Cofinanciers - St. Kitts & Nevis 0.50Cofinanciers - St. Lucia 0.50Cofinanciers - Dominica 0.40

Subtotal: Cofinanciers 1.40__g.X TOTAL 2 es T ,?3.79

Borrowers: Governments of St. Kitts & Nevis, St. Lucia, Dominica, Grenada and St. Vincent & the GrenadinesGuarantor: SameResponsible agencies:

St. Kitts & Nevis - Ministry of Finance, Planning and DevelopmentSt. Lucia - Ministry of Finance and PlanningDominica - Ministry of Finance, Industry and PlanningGrenada - TBDSt. Vincent & the Grenadines - TBD

t _ _ure~m~ t*_APJy,:(US$in) FY1999* FY2000 FY001 FY_2E*St Kitts & Nevis Annual 2.5 2.5 3 0.5

Cumulative 2.5 5.0 8.0 8.5St. Lucia Annual 0.5 3.5 1.5 0.53

Cumulative 0.5 4 5.5 6.03Dominica Annual 0.5 3.0 1 0.5

Cumulative 0.5 3.5 4.5 5.0

APL 1: APL 2:Implementation period: 3 years Implementation period: 3 years*Expected effectiveness date: January 31, 1999 Expected effectiveness date: June 30, 1999**Expected closing date: January 31 , 2002 Expected closing date: June 30, 2002

APL 3: Additional physical investments & institutional APL 4: Contingency FundingstrengtheningImplementation period: 3 years Expected effectiveness: Depends on occurrence of

disasterExpected effectiveness date: FY2002 Expected closing date: FY2005Expected closing date: FY2005

A: Program Purpose and Project Development Objectives

1. Program purpose and program phasing:

The proposed program aims to support the physical and institutional efforts of the five member countriesof the Organization of Eastern Caribbean States (0ECS)' for disaster recovery and emergencypreparedness and management. The OECS nations are particularly vulnerable to different types ofdisasters including hurricanes, tropical storms, floods, landslides, earthquakes and storm surges. Thenations' low level of preparedness, lack of mitigating measures and limited disaster response capabilitywas evidenced most recently by the devastating impact of Hurricane Georges on St. Kitts & Nevis inSeptember 1998.

The program will consist of individual lending operations in the five member countries. It will be phasedover a period of approximately six years and will support a comprehensive set of activities:* Physical investments: Key social and economic infrastructure will be protected and strengthened

before disasters strike so as to reduce the likelihood of loss of life and assets--alternatively, they willbe rehabilitated or reconstructed in the aftermath of a disaster.

* Capacity building: The capacity of national emergency management agencies will be strengthened toenable them to perform more effectively.

* Institutional strengthening: Steps will be taken to increase the ability and interest of the privateinsurance industry to share disaster-related risks, and to improve and support the enforcement ofbuilding codes and sound land-use planning.

* Community preparedness: Community-level disaster committees will be organized, trained andequipped to enhance their role in disaster preparedness, mitigation and recovery.

These activities will be carried out in the following phases:

* APL 1: The first phase of the program will focus on immediate reconstruction and rehabilitation ofinfrastructure in St. Kitts and Nevis which suffered major damage due to Hurricane Georges onSeptember 21, 1998. It will also support disaster mitigation investments in St. Lucia and Dominicawhich are both particularly vulnerable to disasters due to their proximity to past hurricane paths. Thisphase will strengthen emergency preparedness and response systems in all these countries, such asEarly Warning Systems. In addition, it will finance analytical studies for developing insurance/re-insurance schemes for public buildings, improving building codes and proper land use planning. Thestudies will lay the basis for improvements in the institutional framework and help develop disastermitigation instruments which will be financed in subsequent phases.

* APL 2: The second phase will bring in the two remaining OECS countries (Grenada and St. Vincent& the Grenadines) to the program. The activities supported will be the same as in APL 1.

* APL 3: The third phase of the program will focus on additional physical investments identifiedthrough the hazard mapping analysis, as well as provide further support for the longer-terminstitutional strengthening of each country's disaster management capacity.

* APL 4: The operation will include contingency funding for any eligible OECS member nation shoulda severe natural disaster strike them during the program period (approximately six years). This phasewill run in parallel with APL 1 and APL 2, meaning that as long as a country has signed for eitherAPL I or APL 2, they would be eligible to access the Contingency funds.

'OECS member countries are Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, St. Vincentand the Grenadines. Antigua and Barbuda is not eligible for Bank financing.

2. Project development objectives:

Within the framework of the program, individual lending operations will be financed in the five countries(hereafter referred to as projects). The development objectives of the five projects will be the same:

* To strengthen key economic and social infrastructure and facilities with the aim of minimizingdamage caused by future natural disasters and reducing the disruption of economic activity in theevent of disaster emergencies (pre-disaster works)

* To reconstruct and rehabilitate key social and economic infrastructure following disasters to allowquick recovery and minimize disruption of economic activity (post-disaster works)

* To strengthen the countries' institutional capacities to prepare for and respond to disasteremergencies in an efficient and effective manner

3. Key performance indicators:

Program phasing and output indicators* Three OECS countries (Dominica, St. Kitts & Nevis, and St. Lucia) have already prepared projects in

accordance with the program framework, and have signed a Development Program Agreementacceptable to the Bank.

* The remaining two countries (Grenada and St. Vincent & the Grenadines) will be able to participatein APL 2 once they have adequately completed project preparation as well as made a clearcommitment to a disaster management framework by signing the Development Program Agreement.These countries are expected to come on board early in 1999, as project preparation is already wellunder way.

* Participation in APL 3 will be triggered by the following conditions:1. Satisfactory completion of physical investments on time, within budget, and of adequate technical

quality under APL I and APL 22. Evidence of adequate maintenance of infrastructure particularly vulnerable to disasters3. A fully staffed National Emergency Management Agency with a clear mandate, adequate Terms

of References, and sufficient financial resources4. A program of preparedness and mitigation activities at the national and community level,

including a complete National Disaster Preparedness and Response Plan for natural and man-made disasters

5. An operational plan within NEMA to carry out training and other activities in disaster awareness,preparation and response at the community level, including at schools and private businesses

6. A fully staffed National Meteorological Service with a clear mandate, adequate Terms ofReferences, and sufficient financial resources to issue timely weather and flood warnings, as wellas an operational island-wide communications systems to transmit the information tocommunities and businesses

7. Enactment of a National Building Code that provides for disaster-resistant construction standardsfor publicly owned buildings, infrastructure facilities as well as private buildings and homes

8. Completion of a national map of hazards and a detailed vulnerability analysis of natural andmanmade disaster threats;

9. Completion of investigation of insurance/re-insurance policy options for public buildings,including exposure assessment as well as pricing of insurance policies.

* Contingency funding (APL 4) will be available to member countries in the event of a major disasterduring the program period (six years). Access to this loan will be triggered by a declaration of adisaster emergency by the government and recognition by the international community of anemergency situation. The contingency funding will run in parallel with APL I and APL 2, i.e. aslong as countries have committed to a disaster management framework by signing either APL I orAPL 2, they would have access to the loan.

Outcome indicators* Appreciable reduction in time for restoration of key public services following a disaster. Key

services include water supply, electricity service, basic health services, and opening of schools.* Smooth and effective disaster response systems (early warning, shelter management, relief supplies,

subsequent reconstruction and rehabilitation, etc.) during and after emergencies.* Reduced cost to Governments of repair and rehabilitation of key infrastructure, and quick resumption

of economic activities following disasters.

Inputimplementation progress indicators* Specific monitorable indicators to measure implementation progress for different project components

for each country are given in the Project Progress Indicators sections in the Country Annexes.

B: Strategic Context

1. Sector-related Country Assistance Strategy (CAS) goal supported by the program (see Annex 1):

CAS document number: 14295-LAC Date of latest CAS discussion: May 4, 1995The program directly supports two principal goals of the OECS CAS: supporting infrastructure andsafeguarding the environment.* Supporting infrastructure Supporting infrastructure is key to sustaining income growth as these

countries develop fully as service-based economies. Although the initial strategy of the CAS hadbeen to support infrastructure by providing resources to these countries via the CaribbeanDevelopment Bank (CDB), this strategy has not been successful, as witnessed by the recentcancellation of the CDB VI project. As a result, it was agreed with the OECS countries that it wouldbe more effective to increase direct lending to these countries for projects (see Annex 6: EconomicDevelopments and Bank Program Implementation). However, close coordination with similar CDB-financed project investments has been maintained throughout the preparation of this program.

* Safeguarding the environment. In the last few years, the Bank has taken the lead in assisting theOECS countries in preparing National Environment Action Plans (NEAPs). The next step, foreseenin the CAS, is to assist in implementing these plans and preparing specific programs to addresspriority needs. One of the priority needs identified in the NEAPs is disaster prevention andmitigation, which is the primary objective of the proposed program.

2. Main sector issues and Government strategy:

Main Sector Issues* The consequences of natural disasters in the small island states of the Caribbean from events such as

hurricanes, tropical cyclones, earthquakes, and floods on economic activities, property, humanwelfare, and natural resources can be devastating. These events can lead to significant disastersgreatly affecting the productive sectors of the economy such as agriculture and tourism, not tomention the impact on communities. The impact of various hurricanes on the OECS countries in thepresent decade is summarized below.

Major Caribbean Disaster Losses 1979 - 1998

E~~~ Year;- >; Setn Im<>,pac!t; -

St. Kitts Hurricane Georges 1998 Housing 85% damage/destructionAgriculture 50% sugarcane crop lost

Dominica Hurricanes Luis and 1995 All sectors $66.7 m in total damagesMarilyn

Antigua Hurricane Luis 1995 Tourism 60%/e fewer tourists3 months after

St. Lucia Tropical Storm Debbie 1994 All sectors $79 m in damages (18% Of GDP)Jamaica Hurricane Gilbert 1988 All sectors $956 m in total damages

$130 m in lost exportsS 100 m in lost tourism

St. Lucia Hurricane Allen 1980 Housing 30% damagedDominica Hurricanes David & 1979 Housing 60% destroyed or damaged

- FredericSource: Caribbean Disaster Mitigation Project (CDMP), Organization ofAmerican States (OAS), World Bankdocuments, and others

* Since these events recur at frequent intervals, preparedness and mitigation activities must focus onminimizing their potential negative impact. The OECS countries face special challenges todevelopment because of their small size. Their topography of mountainous terrain and lowpopulation densities (see table below) makes the cost of economic and social infrastructure high. Thefull cost of natural disasters in the OECS goes beyond the direct dpmages incurred from each storm.It involves the higher costs of building infrastructure to withstand storms and flooding, additionalprotections such as sea walls, and strict engineering designs for all facilities. The devastationassociated with the impact of these hazards often overwhelms local emergency systems resulting inthe need for massive external assistance.

OECS Country Statistics

Population Area G Population Unemployment(1997) (sq. km) Capita in Poverty (%) Rate (%)

Dominica 75,000 750 $3,120 33.0 10.0St. Kitts & Nevis 41,000 269 $6,160 15.0 12.0St. Lucia 150,000 610 $3,620 19.0 16.0St. Vincent & the 112,000 340 $2,500 17.0 20.0GrenadinesGrenada 99,000 340 $3,000 20.0 16.0

Source: Caribbean Economic Overview, The World Bank, June 1998

0 In the Caribbean, there were a total of 309 disaster events between 1900 and 1996 with over 72,000deaths and approximately 12 million people affected. This included 189 natural disaster events in theGreater Antilles2 with over 34,000 deaths and 11 million people affected, and 120 events in theLesser Antilles3, where there were over 38,000 deaths and 624,000 people were affected. Onaverage, at least one major hurricane and numerous tropical storms cross the Caribbean each year,with the OECS countries often in their path.

Types of Disaster Events by Country (1900 - 1996)

Total Tropical Floods VolcanicCyclones Eruptions

Dominica 11 11St. Kitts and Nevis 7 6 1St. Lucia 11 10 1St. Vincent 1I 4 4 3Grenada 4 3 1

Source: Diagnostic Study for the DIPECHO Action Plan for Central America and the Caribbean, April 1997,ECHO Programme for Disaster Prevention, Mitigation, and Preparedness, CRED/CIFEG

* The repercussions of disasters on the development of these countries' economies can be severe:

Economic developments. The OECS countries demonstrated an impressive growth performance inthe 1980s with an average GDP growth rate of 5-6%, due largely to a favorable external environment(concessional aid flows financing a large portion of public investments in infrastructure; preferentialmarket access; favorable prices allowing a twofold increase in banana exports receipts; and fastgrowth in the tourism sector). However, growth in the 1990's has slowed considerably toapproximately 3% per year, again due mainly to the external environment with external flowsslowing down and concessional aid flows declining rapidly. The main economic trend in the OECS

2 Greater Antilles: Bahamnas, Cuba, Haiti, Cayman, Turks/Caicos, Jamaica, Puerto Rico, Dominican Republic3 Lesser Antilles: Leeward and Windward Islands from Antigua to Trinidad/Tobago

countries during the 1990s has been the rapid transition from agriculture-based economies to service-based ones, mostly tourism. The WTO ruling against the preferential treatment of Caribbean bananasaccelerated this trend. Since 1995 there have been positive signs indicating that the OECS economiesmight have overcome the worst part of their adjustment towards more diversified economicstructures. The prospects for GDP growth have improved somewhat relative to the first half of the1990s, due mainly to the expansion of the tourism sector in substitution of the banana industry as themain foreign exchange earner. This development, however, will require a medium- and long-termperspective to protect the very resources that makes them attractive to tourism. The challenge thatthe OECS countries face is that both their main foreign exchange sources, tourism and agriculture,are particularly vulnerable to disasters.

TourisnL Tourism has become the most important foreign exchange earning sector in thesecountries. In St. Lucia, for example, agriculture represented 16% of GDP in 1977, while tourismrepresented 21%. In 1996, agriculture formed 6% while tourism doubled to 32%. However, naturaldisasters like hurricanes can have a devastating impact on the tourist industry, as tourists becomemore cautious about going to the country that has been devastated by a tropical cyclone, and it takestime to rehabilitate necessary infrastructure to serve the tourist industry. In St. Kitts, HurricaneGeorges destroyed the harbor that docks all cruise ships, caused severe damage to all but two hotels,and destroyed the airport traffic control tower. Prior to Hurricane Georges, the sugar industry andtourism accounted for 68% of total exports of goods and non-factor services and the share of tourismin GDP in St. Kitts and Nevis had been constantly rising. Although the impact of Hurricane Georgeson revenue from the 1998/99 tourism season is yet to be seen, past examples like Antigua in themonths following Hurricane Luis in 1995 show that an estimated 60% to 70% fewer tourists visitedthe island that year.

Agriculture. Agriculture is also vulnerable to natural hazards because of its dependence on foreigntrade and because it still plays an important role in creating the island's economic wealth. There isstill a single-crop export-oriented agricultural industry (bananas or sugar cane) on many of theislands. In St. Lucia in 1979, in the aftermath of Hurricane Allen, farming employed 43% of theactive population and consisted of about 15% of the country's GDP (banana production, which isparticularly vulnerable to high winds, represented 80% of the island's agriculture exports).Following Hurricane Georges (1998), over 50% of the sugar crop was completely destroyed in St.Kitts.

Roads, transport and coastal areas. The transport and communication networks, which areincreasingly vital to these countries, are particularly vulnerable. Natural events cause disasters suchas landslides and floods, which have a significant negative impact on road conditions and the roadnetwork, and eventually disrupt road transport. Selective strengthening of roads and bridges in keysections of the network is needed to help minimize this disruption.

Housing. Housing is one of the most vulnerable sectors, because it is generally rudimentary andstructurally weak in these countries. In Dominica, in the aftermath of Hurricane David (1979), 60%of housing was seriously damaged or destroyed. In St. Lucia, following Hurricane Allen (1980), 30%of housing was impacted, and 80% of the schools were destroyed or seriously damaged. In St. Kitts,following Hurricane Georges (1998), 85% of the housing stock was seriously damaged or destroyedand all schools sustained some damage.

Public buildings and utilties. Lifeline infrastructure such as hospitals, airports, public buildings,shelters, etc., are also potentially vulnerable to natural disasters. In St. Kitts, following HurricaneGeorges (1998), three quarters of the main hospital was destroyed. One of the major problems in theOECS countries is an absence of legislation, a lack of regulations and no effective enforcementmeasures to ensure appropriate building construction. Following a hurricane or tropical storm, the

electrical network is often down for weeks, which causes serious disruptions in power supply to alleconomic activities and key social services such as hospitals and water distribution. In St. Kitts,electrical poles were uprooted or broken throughout the entire island leaving citizens without powerfor weeks.

Communities. Due to rapid population growth and human settlements in disaster prone areas, moreand more people and their assets are vulnerable to natural hazards. However, often communities arenot forewarned of an impending disaster, not prepared, and are not organized to manage emergencysituations.

Government Disaster Mitigation Strategies* Although natural occurrences such as floods, hurricanes, earthquakes and volcanic eruption cannot be

stopped, countries can take preventive measures at various levels to make the impact of such eventsless harmful and costly, and prevent some of their worst effects.

* The OECS countries are committed to reducing their vulnerability to natural disasters and have taken,or are planning, several steps in the appropriate direction. They have:i) named a National Disaster Coordinator with the unique function of bringing diverse groups

together to promote disaster mitigation, stimulate preparedness and to coordinate reliefoperations;

ii) developed a process and structure to engage all aspects of society and to help them preparethemselves;

iii) undertaken disaster related training;iv) attempted disaster training to improve emergency management skills;v) drafted and supported laws and regulations to strengthen national and community disaster

awareness and protection;vi) engaged business and industry resources to support public projects; andvii) stimulated private sector to develop plans to protect their productive capacity

* A number of regional initiatives are also under way.i) There has been considerable progress in the identification of hazards and analysis of country

vulnerability.ii) The CARICOM countries formed the Caribbean Emergency Disaster Relief Agency (CDERA)

which initially focused on relief coordination but has now launched a program aimed atevaluating the economic impact of hurricanes in the short, medium and long terms based on the1995 hurricane season.

iii) The UNCHS with the Organization of American States (OAS) has developed a CaribbeanDisaster Mitigation Project (CDMP) which has developed an OECS Model Building Code and isproviding technical assistance to OECS governments for adoption, enactment and enforcement ofthe code.

iv) Several organizations are working with the Organization of American States (OAS) on aninitiative to reduce the vulnerability of schools.

v) The Pan American Health Organization (PAHO) has conducted vulnerability studies of hospitalsand health facilities which have resulted in specific recommendations for strengthening hospitalsin St. Lucia and Grenada. PAHO has secured funding for these countries and is seekingadditional funds for hospital mitigation in other OECS countries. Countries have also improvedMass Casualty Management through training provided by PAHO.

3. Sector issues to be addressed by the program and strategic choices:

The proposed program will consist of two types of activities: investments in physical infrastructure andstrengthening institutional capacity to prepare for and manage disasters.

* Emergency physical investments. Certain key infrastructure facilities in each country are repeatedlydevastated by disasters (points along roads during heavy rains/landslides, bridges during floods, roofsof shelters, hospitals and other critical public buildings during hurricanes). There are other structuresthat need to be constructed as their absence leads to damage and destruction to nearby areas (like seadefenses and retaining walls. These facilities are likely to be affected at any time in bad weatherconditions, and particularly during the "hurricane season" every year. These investments needs havealready been prioritized by the member governments and are limited in number. Financing these keyinvestments on an emergency basis will clearly be one of the most cost-effective ways to reducedamages and lessen the negative impact of future disasters on the society and economy. Therefore,for the infrastructure component, the program will finance specific investment needs and not seek toaddress any long-term sectoral issues in any one sector.

* Disaster preparedness, mitigation, and emergency management. The program will address long-term issues in the area of disaster preparedness and mitigation. In each country, it will aim tostrengthen the authority and capability of the national emergency management agencies, establisheffective Early Warning Systems, and strengthen community organization and preparedness fordisasters. The program will also seek to address institutional issues such as improvements in, andenforcement of, the regulatory framework of disaster-related insurance, building codes and land useplanning. This would ensure that physical infrastructure in future is located in less vulnerablelocations and built to minimize damage due to disasters, as well as reduce future costs of repair andrehabilitation.

* Quick disbursing loans in emergency situations. In emergency situations, the program will alsoconsider providing quick disbursing funds to finance essential imports from a positive list of itemsneeded to help restore economic activity. These imports will include food grains, edible oils,construction materials, and petroleum products. In the case of St. Kitts and Nevis under APL 1, aquick disbursing component of US$2.4 million is included to finance imports. Similar mechanismsmight be considered under APL 4 (the contingency funding) as well.

4. Program description and performance triggers for subsequent loans:

The program consists of four types of activities: physical works, capacity building, institutionaldevelopment and strengthening community involvement in disaster preparedness, mitigation andresponse.

* Physical works: These include prevention and mitigation works such as construction of seadefenses; river control and damage protection; flood protection (for key facilities such as airports,main network roads); slope stabilization; retrofitting of schools and shelters; construction ofhurricane-resistant shelters; and installation or construction of backup facilities (like generators andreservoirs) for critical services such as hospitals. They also include post-disaster rehabilitation workssuch as construction of hospital wards and shelters; beach restoration; restoration of water andelectricity facilities, etc.

* Capaciy building: This will involve strengthening the capacities of national institutions responsiblefor disaster preparedness, mitigation and management. National Emergency Management Agenciesin each country will be adequately staffed, provided the necessary training, and given necessaryequipment and facilities such as an Emergency Operations Center and communications equipment.Technical assistance will be provided in disaster planning and management as well as to enhance theoperational links, including communications, between the national agency and other stakeholders ingovernment ministries, private businesses, NGOs, and, most importantly, local communities. TheNational Meteorological Services in each country will be provided appropriate equipment and

training to carry out weather observations and warnings adequately at the local level, including thedevelopment of flood alert warning systems and ham weather radio observation networks. Wherenecessary, the capacity of the Ministry of Communications and Works to carry out activities such asriver training or monitoring earth movements, etc. will also be strengthened.

Institutional strengthening: The program will support improvements in the regulatory framework asit relates to disaster planning and mitigation. This will involve the enactment and enforcement of anational Building Code and hazard analysis and vulnerability mapping to improve land-use planning.A major activity for institutional strengthening will be to put in place an appropriate insurance policyfor government buildings. Studies will be carried out to examine the mechanisms for putting in placemarket incentives (for example, via insurance premium pricing) for mitigating risk and reducingvulnerability, as well as mechanisms for protecting against sharp fluctuations in insurance/re-insurance prices. The latter would have the objective of eventually augmenting overall insurancecoverage at a reasonable cost, and ensuring the availability of backstop financial mechanisms toprovide the insurance industry and the government sufficient reserve liquidity to finance damagesfrom disasters.

* Community involvement: The program will support District Disaster Committees and strengthentheir capacity to prepare community disaster plans and respond to and manage disasters andemergencies. It will promote community activities in disaster prevention and mitigation by providingaccess to training and mitigation measures. As a pilot in Dominica, it will establish a small fund tofinance small-scale community-driven initiatives for local disaster prevention and mitigation.

* These activities will be carried out or initiated in the first phase of the program (APL 1 for St. Kitts &Nevis, St. Lucia and Dominica; APL 2 for St. Vincent & the Grenadines and Grenada). In the secondphase (APL 3), the program will focus on additional physical investments identified through thehazard mapping analysis, as well as provide further support for the longer-term institutionalstrengthening of each country's disaster management capacity. Institutional strengthening willinclude activities such as: (i) the enforcement of regulations such as building codes and land useplanning, including tracking and inspection; (ii) the development of insurance schemes for publicbuildings; (iii) examining ways in which appropriate technologies can be applied more effectively fordisaster management and mitigation; (iv) continuing the process of community outreach and change;and other measures as they arise from the results of implementation of the first phase. The triggers.for this phase are given under "Program Phasing Indicators" earlier in this section of the PAD.

* The program will also make available contingency funds whose objective would be to financeemergency rehabilitation and reconstruction investments as a result of disasters in order to restorecritical public services and stimulate economic recovery. Any OECS member country that is alreadya participant in the program (by having signed either APL I or APL 2) would be eligible. Thetrigger for the loan, would be a national declaration of an emergency as a result of a disaster, which inturn triggers an international disaster/emergency declaration. The Contingency funding wouldfinance immediate rehabilitation activities that would help restore critical public services, and thereconstruction of physical and social infrastructure which will stimulate economic recovery. It isexpected that rehabilitation of roads and bridges, restoration of water and sanitation facilities,rehabilitation of critical public buildings (hospitals, schools, administrative buildings) and criticalservices (electric power), would receive priority consideration for funding. Purchase of capital goods(construction materials, equipment, repair materials such as "Bailey type" bridge elements,engineering services) would also be considered for financing. Relief supplies such as blankets,clothing and food would not be considered.

C: Project Description Summary

1. Project components (see Annex 2A, 3A and 4A for detailed descriptions and Annex 2B, 3B, and 4B for detailedcost breakdown):

Component Category Cost Incl. % of Total Bank- % ofContingencies financing Bank-

;______________ ______________ ______ __ (USSM ) (US$ fi acin1. ST. KITmS AND NEVIS 10.00 100% 8.5 85%a. Fast Disbursing Component

Essential imports for recovery and rehabilitation Other 2.4 24%according to positive list

b. Physical Recovery and Mitigation WorksHospital, shelters, water supply, electricity, Physical 5.35 53.5%roads and coastal protection, airport.

c. Strengthening Emergency Preparedness andResponse Physical works,(i) Strengthen NEMA and construct Emergency institution 1.45 14.5%Operations Center; (ii) Develop Early Warning building, otherSystem (support to NMS, ham weather radioobservation network); (iii) Community baseddisaster management (support to district disastercommittees)

d. Institutional StrengtheningHazard analysis/vulnerability mapping, Institution 0.28 2.8%vulnerability reduction of public buildings, buildingbuilding code

e. Support to the Project Coordination Unit Project 0.52 5.2%management

2. ST. LUCIA 7.65 100% 6.00 78%a. Physical Prevention and Mitigation Works

Airport flood protection, bridges and river Physical works, 5.94 78%training, Cul de Sac flood prevention, reservoir, otherschools and libraries

b. Strengthening Emergency Preparedness andResponse 0.86 11%(i) Strengthen Office of Disaster Preparedness; Institution(ii) Develop Early Warning System (support to building, otherMet Service, flood alert system, ham weatherradio observation network); (iii) Communitybased disaster management (support to districtdisaster committees).

d. Institutional StrengtheningHazard analysis/vulnerability mapping, Institution 0.24 3%vulnerability reduction of public buildings, buildingbuilding code

e. Support to Project Coordination Unit Project 0.61 8%management

3. DObMINCA ______ 59710 5O 40.%a. Civil works

Sea defenses, river control, flood prevention, Physical 4.13 69%roads, shelters

Component Category Cost Incl. % of Total Bank- % ofContingencies financing Bank-

(US$M) (USSM US$M) financingb. Strengthening Emergency Preparedness and

Response(i) Strengthen national Office of Disaster Physical works, 1.22 20%Preparedness; (ii) Develop Early Warning institutionSystem (support to NMS, flood alert system, building, otherham weather radio observation network); (iii)Community based disaster management (supportto district disaster committees and pilotVulnerability Fund).

c. Institutional StrengtheningHazard analysis/vulnerability mapping, Institution 0.17 3%vulnerability reduction of public buildings, buildingbuilding codes

d. Support to Project Coordination Unit Project 0.45 8%management I I I

TOTAL 23.62* _ 19S3**

* Cost figures do not include the front-end fee charged on IBRD loans** Bank financing figures include the front-end fee charged on IBRD loans

2. Key policy and institutional reforms supported by the program:

* This is an emergency multi-sectoral operation, which does not intend to address long term economic,sectoral and institutional problems within any one sector or include conditionality linked tomacroeconomic or sectoral policies.

* To ensure sustainability of physical investments financed through the program in the differentsectors, each responsible ministry (e.g. the Ministry of Health for a hospital rehabilitated) will berequired to carry out satisfactory operations and maintenance (O&M) by including provisions forO&M in the annual budget.

* Institutional reforms will be sought in the area of disaster preparedness, prevention and mitigation,namely through activities like staffing of national emergency management agencies, ratification ofnational disaster plans, institutionalization of effective Early Warning Systems, and passing ofbuilding codes, as necessary in the respective countries.

* The program will also finance studies and other initiatives to enhance preparedness to manage futureemergency situations in the long-term, for example, evaluating the existing frameworks of privatelyoffered disaster-related insurance/re-insurance schemes for public buildings, incorporating hazardanalysis and mapping into land use planning, and enforcing building codes.

3. Benefits and target population:

* The main beneficiaries will be the population at large who will benefit from the avoidance orminimization of the disruption of economic activity due to prevention and mitigation works financedthrough the program, or in the event of damage, their rapid rehabilitation/reconstruction.

* The program will benefit many lower income groups as it will finance the protection of dwellings andcommercial properties in the most risk-prone areas, which are often inhabited by poorer sections ofthe population (in St. Kitts, the housing reconstruction component will be targeted to lower incomepeople).

* Government agencies such as the national emergency management agencies, the planning ministries,and other implementing agencies (especially the Ministries of Communications and Works) willbenefit from technical assistance and institutional strengthening.

* There will be a decrease in the cost of disaster management, response and rehabilitation, as the nationwill be better prepared to work more effectively and with a better coordinated mechanism during andfollowing disasters.

4. Institutional and implementation arrangements:

Project coordination and management* In each country, a Project Coordination Unit (PCU) will be set up in the respective ministries of

finance and planning. A Project Coordinator will be assigned by each ministry to coordinate andmonitor implementation progress according to agreed upon performance indicators and report to theWorld Bank. The project will finance a project Financial Manager within each PCU for the durationof the project who will be familiar with Bank procedures and guidelines for administration andmanagement of funds. The project will also finance a contract management specialist wherenecessary to assist the various implementing agencies in awarding and supervising contracts.

* In each country, a National Hazard Mitigation Council (or similar body) will be set up to serve as asteering committee to coordinate policy issues, recommend the selection of priority investments, andassist in ensuring compliance of government commitments. The committees will consist ofrepresentatives of relevant sector ministries involved in the project, as well as representatives fromthe private sector and NGOs.

Project impkmnentation* In each country, each project component will be implemented by the respective line ministry

responsible for that component (e.g. sea defenses will be implemented by the Ministry ofCommunications and Works, while retrofitting of schools will be implemented by the Ministry ofEducation). For some of the institutional strengthening components, the national emergencymanagement agencies will be the implementing agency.

* The implementing agencies will provide progress reports to the PCU on a monthly basis.* Procurement, contracting and payments to contractors will be undertaken by the respective

implementing agencies using World Bank guidelines with the assistance of the contract managementspecialist in the PCU where necessary.

* Special implementation arrangements for specific components, like the Vulnerability Reduction Fundin Dominica, are described in the respective Country Annexes.

Project supervision, reporting and audit requirements* A Project Implementation Manual will delineate financial management and control procedures,

including TORs for internal and external audits acceptable to the Bank* Each implementing agency will forecast the amount to be requested from the Special Account on a

quarterly basis. The Financial Manager in the PCU will authorize the withdrawal of these funds fromthe Special Account and make payments directly to the contractors/consultants.

* The PCU will, on a periodic basis, supervise the implementation of each component of the project,including the physical investment components, and undertake periodic field visits

* The PCU will make quarterly reports to the World Bank, including a statement of sources and uses offunds, ensuring that all project guidelines are being followed

* Financial audits for all accounts and components will be carried out annually.• Technical audits will be carried out for large civil works that do not include technical audits as part of

the supervision process. Audits reports will be submitted to the Bank no later than six months afterthe end of each fiscal year.

D: Project Rationale

1. Project alternatives considered and reasons for rejection:

Regular Bank operations vs. Adaptable Program Loan (APL)All five of the OECS countries require assistance for disaster management and preparedness. Becausethree countries are advanced in project preparation, whereas two are in the process of identifying priorityinvestments and developing engineering designs and studies, it was decided that an APL would allow theflexibility for the Bank to:* respond immediately to a disaster recovery emergency in St. Kitts & Nevis;* not penalize the countries that have prepared projects and taken the required steps;* allow the slower moving countries to come on board at a later stage;* follow through with institutional reforms for long-term sustainable disaster management policies and

strategies; and last* through the Contingency funding, ensure that the Bank is fully responsive to the particular needs of

member countries as they arise.

Using the APL will have the important benefit of encouraging regional integration through the sharing offacilities, practices, and information between the OECS countries (for example, the program will financea regional workshop for training local contractors in hurricane-resistant building technologies). It willalso reduce the cost of preparing and supervising small operations (as a ratio of administrative budgetover dollars lent).

Earmarkingfundsforpost-disaster works on a country basis vs. creating separate ContingencyfundingIt is not possible to predict how much damage might be caused by a future disaster. Earmarking fundswithin the allocated amounts per country for recovery from a disaster would reduce the flexibility of theoperation by first, reducing the amounts available for pre-disaster works, and second, forcing countries topay commitment fees for amounts that it cannot use until and if a disaster strikes. In addition, creating aregional facility gives the flexibility to increase the amount of assistance according to the level of damageincurred, especially if one country is hit particularly badly.

2. Major related projects financed by the Bank and/or other development agencies (completed,ongoing and planned):

Sector issue Project Latest Supervision Ratings(Bank-financed projects only)

Bank-fimanced hnplementation DevelopmentProgress Objective

Rehabilitate hydraulic infrastructure of St. Lucia: Watershed & S Spriority watersheds; strengthen govt Environmental Managementcapacity for environmental management & Project--completed 1997flood preparednessStrengthen monitoring capacity & analysis GEF Planning for Adaption S Sof global climate change to determine to Global Climate Changepotential impact on coastal areas; identify Project--1997areas vulnerable to adverse effects of global (implemented by OAS/climate change & sea level rise CARICOM) ___

Introduce pro-competitive reforms in OECS: Telecommunications N/A N/Atelecommunications sector and increase Project-- 1998supply of informatics-related skills.

Sector issue Project _i ings________.__.___-._ (Daulc..flanced rojects onl)

i________ ~Implementation )evlopment_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ,,._,_,_._._._'Progres ObjectiveReduce public health risk OECS: Solid Waste Mgmt U U

Project-- 1995

Finance rehabilitation needs; provide Jamaica: Emergency 2 1framework for overall coordination & Reconstruction Importimplementation of reconstruction program Loan---completed 1991Reduce loss of life & deterioration of living Bolivia: El Nino Emergency S Sstandards from floods &/or droughts; Assistance Project--- 1998rehabilitate & reconstruct infrastructurefacilities damaged by floodsreduce loss of human life and deterioration Peru: El Nino Emergency S Sof living standards from floods &/or Assistance Project--1997droughts; minimize the loss of, or damageto, economic and social infrastructure;enhance institutional capacity to forecastand respond to future El Nino eventsOther development agenciesUSAID, implemented by OAS Caribbean Disaster

Mitigation Project (sp.Model Building Codeproject)

PAHO Caribbean HospitalMitigation and MassCasualty Training

IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory)

3. Lessons learned and reflected in the project design:

* The Bank has had experience with disaster management in the Caribbean region through twoprojects: the St. Lucia Watershed and Environmental Management Project (following Tropical StormDebbie in 1994) and the Jamaica Emergency Reconstruction Import Loan (following HurricaneGilbert in 1988). The main lessons learned from the St. Lucia project are the following: i) donorcoordination in emergency situations is critical; ii) flexibility in procurement procedures, particularlyfor small contracts, allows rapid implementation; iii) a balance needs to be set between rapidimplementation and engineering designs so that quality is not compromised, and environmentalguidelines are adhered to; and iv) community participation can benefit implementation and ensuresustainability of interventions. The proposed program has been designed to address these mainlessons: the project was designed in close coordination with donors; procurement procedures havebeen made particularly flexible for the project; engineering designs will be carefully reviewed by theBank for the larger civil works projects, and the Project Implementation Manual will set the criteriaand guidelines for environmental assessments for civil works; and as part of the disaster managementframework, the project foresees the participation of communities through training in disastermanagement, search and rescue, etc.

* Lessons learned from the Jamaica project have also been incorporated. The Jamaica experiencedemonstrated, among others: i) the need for greater involvement of communities and the privatesector in decision-making and implementation of the project; and ii) the importance of clearlydefining the responsibilities of implementing agencies (ambiguous roles can lead to significantimplementation delays). The proposed program has been designed and conceived with activeparticipation of all major stakeholders, including communities and the private sector, and theresponsibilities of implementing agencies will be clearly defined during negotiations.

* Bank-wide experience has shown that successful emergency projects have involved: (i) rapidity ofresponse; (ii) project simplification; (iii) strong government commitment; (iv) not imposing majorconditions that are difficult for the Governments to meet; (v) strengthening existing institutions ratherthan creating new ones; and (v) investing in measures that enable the Borrower to be better preparedto mitigate the effects of future disasters. The most successful emergency operations have been thosethat not only responded quickly, but identified and addressed underlying problems and determinedhow to resolve them in ways that resulted in long-term sustainable solutions. One of the main aims ofthe proposed program is to strengthen institutional capacity to prepare for and manage disastersituations in the future. Given the vulnerability of the OECS countries to disasters, there is alreadystrong government commitment to the program. The program will also enhance the capacities ofexisting institutions involved in disaster management.

* The management of regional projects with participation by a number of beneficiary countries posesspecial challenges to the implementing agencies as different national priorities, capacities, andpractices must be taken into consideration when designing individual country participation in projectactivities. Although the proposed program is designed as a regional program, with similar issuesaddressed in each country, and similar goals pursued, the program has been tailored to fit the specificneeds and circumstances of each country through individual lending operations, which have beendesigned separately with each country.

4. Indications of borrower commitment and ownership:

This program emerged in response to a direct request to the President of the World Bank in July 1998 bya team of Commonwealth Secretariat ministers to assist small nations to address their economic,environmental and legal vulnerability. Following a commitment by the President to create a Task Forcefor small states, the OECS member nations expressed a strong interest in using Bank resources for aDisaster Management Program. Following Hurricane Georges in September 1998 and its devastatingimpact on St. Kitts & Nevis, the governments' desire for rapid implementation of the program hasincreased. The Government of St. Kitts & Nevis especially has urged the Bank to assist on an expeditedbasis, and has made significant progress in carrying out damage assessments and identifying priorityneeds. The Governments of St. Lucia and Dominica have prepared preliminary designs for the majorityof physical investment components. The Government of St. Vincent has identified physical investmentsand institutional strengthening components to be included in the future project, and Grenada has indicateda strong interest in participating and has made a preliminary identification of components. The programhas strong support from senior officials in the governments, as witnessed by the Prime Ministers meetingwith some Bank missions or signing mission Aide Memoires in some cases.

5. Value added of Bank support in this project:

* Disaster mihigation experience. The Bank has gained experience, particularly over the last fiveyears, in preparing a number of emergency disaster mitigation projects, including for floods,cyclones, and El Nino effects throughout the Latin America and Caribbean Region, as well as in otherdeveloping countries outside this region. The lessons and best practices from these experiences arebeing applied to this project.

* Regional OECS projects. The Bank has already worked on a number of regional projects for theOECS/CARICOM countries and has established strong working relationships, as well as experiencein coordinating regional efforts.

* Bringing in expert advice. Through the Disaster Mitigation Program within the Bank, the projectteam from the Bank includes staff from the U.S. National Weather Service, the USAID Office ofForeign Disaster Assistance (OFDA), and the U.S. Federal Emergency Management Agency toprovide practical, operational and state-of-the-art approaches to emergency management. The teamis also drawing upon the experience of the Organization of American States (OAS) in these areas.

6

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* Donor coordinaton. The project has been designed in collaboration with donors and otherintemational organizations such as the CDB, EU, CIDA, OAS and PAHO.

E: Summary Project Analysis

1. Economic (supported by Annex 4):

[e] Cost-Benefit Analysis: NPV=US$ million; ERR= % [ ] Cost Effectiveness Analysis:[] Other (Specify)The investments financed through the project will be limited to the most urgent reconstruction, preventionand mitigation works. Economic analyses will be carried out for the major civil works that require a fulldesign and will be financed if they have an ERR higher than the minimum acceptable to the Bank(approximately 12%). For schools, libraries, and shelters, most of which benefit entire communities andinvolve retrofitting of existing infrastructure, a least-cost approach will be used.

2. Financial (see Annex 5): NPV=US$ million; FRR= %

Not applicable

Fiscal impact. For each of the physical works components, the operations and maintenance costs will becalculated and a commitment required from government to finance and carry out effective O&M on anannual basis. An annual review of O&M needs will be carried out three months prior to the beginning ofeach fiscal year.

3. Technical:

The project will follow current economically acceptable best-practices in technical standards forinfrastructure to ensure their ability to withstand natural disasters in the future and to minimize theirenvironmental impact. Technical ministries have been actively involved in the preparation of projectcomponents, ensuring their consistency with national technical standards. The key issues would be theskills of local contractors in applying disaster-resistant technologies and ensuring that, in future,construction throughout the country meets technical standards to withstand natural disasters, especiallyhurricanes. To address these issues, the project foresees some training of local contractors in disasterresistant technology, and aims to address the regulatory and enforcement capacities of the governments ininfrastructure construction.

4. Institutional:

* Inplementing agencies: Because the project is multi-sectoral, each sector ministry will be in chargeof implementing their respective component of the project. They will prepare relevant terms ofreference for studies, prepare bidding documents, hire consultants and contractors, and superviseimplementation. Technical assistance will be provided to ministries on an as-needed basis (mainlyfor procurement of equipment and hiring consultants in specialized areas). For some components, thenational emergency management agencies (or their equivalent) in each country will be theimplementing agency. Because the capacities of these offices are generally weak, the project willrequire government commitment of resources and staff for some of the offices, while the project willfinance some equipment and technical assistance.

* Project management: Project coordination and management will be centralized in the ministry offinance and planning (or its equivalent) in each country. Each ministry will designate a staff personfrom the ministry as the Project Coordinator. Due to the lack of resources in these ministries, theproject will finance the services of a financial manager who will be trained in Bank procurement andfinancial management procedures and be responsible for accounting, management of the SpecialAccount, and reporting to the Bank. The project will also finance the services of a contractmanagement specialist where necessary to assist the different implementing agencies in awarding andsupervising the various contracts required for implementation.

5. Social:

No major social issues are foreseen for the program. On the contrary, the program is expected to have apositive social impact as a result of the restoration and retrofitting of basic infrastructure such as schools,hospitals, shelters, roads, etc., and benefit communities by strengthening the capacity of the countries toprepare for and warn their citizens in advance of natural disasters. The Community Based DisasterManagement component aims to organize communities better, supply them with assistance andequipment to prepare for and respond efficiently to disasters, and provide funds for other community-based disaster prevention or mitigation activities.

6. Environmental assessment:

Environmental Category []A [.] B [] C* The project is considered to be a Category "B" project* The majority of investments are reconstruction, rehabilitation and retrofitting of existing

infrastructure, and are not expected to have any negative environmental effects* For other investments, detailed design studies will include environmental impact analyses and

appropriate mitigation measures will be incorporated into the final designs. The ProjectImplementation Manual will set the criteria for the need for and extent of environmental assessmentsnecessary for civil works (preparation of this manual is a condition of disbursement on the civilworks components).

7. Participatory approach

* Primary beneficiaries and other affected groups: The project was prepared in close collaborationwith the governments of the OECS member countries. Technical ministries and the nationalemergency management agencies (or their equivalent) were directly involved in discussions duringthe preparation and pre-appraisal missions, and project identification, assessment of investment needsand prioritization of actions were done in conjunction with the main stakeholders. In each country, aNational Hazard Mitigation Council (or similar body) consisting of representatives of each of theconcerned ministries will be formed to ensure coordination and to share progress, information andviews throughout the project cycle. During project preparation, discussions were also held withcommunities and Community Disaster Committees to assess their needs. A Vulnerability ReductionFund will be started as a pilot in Dominica, which would be a demand-driven fund to identify priorityprevention and mitigation activities that can be undertaken at the community level.

* Other key stakeholders: The preparation missions consulted with private sector businesses and theChambers of Commerce to explore possible public-private partnerships in disaster preparedness andresponse. Collaboration with local or national NGOs was also considered, but there is a relativedearth of active NGOs in the countries. The Red Cross Society is the one of the few active nationalNGOs, and the project will seek to involve the Red Cross in project implementation, particularly tocarry out training of communities and Disaster Committees.

F: Sustainability and Risks

1. Sustainability:

* Maintenance of infrastructurefaciities: Inadequate maintenance has been a key issue insustainability of infrastructure. For each of the physical investment components of the program, therelevant sector ministry will be expected to provide an operations and maintenance plan up-frontbefore disbursement begins, and commit to providing the resources necessary. An annual review ofO&M needs for each component will be carried out no later than three months prior to the beginningof each fiscal year. Disbursement on the physical investment components in the second year willdepend on whether adequate provisions were made in the annual budget for O&M of works initiatedor completed in the first year.

* Institutional abilit toplanfor andmanage emergency response activities: The program willprovide assistance to the national emergency management agencies (or their equivalent) to assistthem in preparing for and managing emergency situations. To ensure sustainability in the long run,the project will seek government commitment of staff and financial resources to these agencies toensure their long-term viability after the project is completed. The bulk of the assistance provided tothese agencies from project resources will be in setting up systems for response activities, as well asfor equipment and training. Through APL 3, the program will support long-term institutionalreforms in disaster preparedness and management.

2. Critical Risks (reflecting assumptions in thefourth column of Annex 1):

Risk Risk Ratiu Risk Mlinimization Measure

Annex 1, cell "from Outputs to Objective"* That physical works are undertaken at technically Substantial Particular attention to supervision for

adequate standards large infrastructure works plustechnical audits

* That national emergency management agencies have Substantial Careful monitoring of leadershipsufficient authority and leadership to take leading role performance in Phase l; specificin disaster preparedness and response trigger mechanism for Phase II

* That disaster committees in charge of early warning Modest Training programs in disasteruse their offices and equipment appropriately preparedness

* That communities are willing to be involved in Modest Careful prescreening of communitiesDisaster Committees and take responsibilities before, to ensure a minimum commitmentduring and after emergencies

Annex 1, cell '"rom Components to Outputs"* Government capacity to manage project and perform Substantial Technical assistance to PCU and to

effectively in each country national emergency managementagencies

* That adequate counterpart funding is in place Modest Substantial risk in St. Kitts.

* That there is adequate capacity in the construction Substantial Supervision of more complexindustry and that contractors are well supervised infrastructure works

* That there is adequate government commitment and Modest Careful monitoring of financial andresources to staff national emergency management human resources in Phase I; specificagencies and to operationalize them trigger mechanism for Phase 11

* That communities are willing to organize and take Modest Careful selection of communitiesactions in disaster preparedness and mitigation supplemented by training programs(applicable for Dominica only)

Overall Risk Rating ModestRisk Rating - H (High Risk). S (Substantial Risk), M (Modest Risk), N (Negligible or Low Risk)

3. Possible Controversial Aspects:

None

G: Main Loan Conditions

1. Effectiveness Conditions:

That a Project Coordination Unit (PCU) with a Project Coordinator and a Financial Manager will beestablished, and a financial management system acceptable to the Bank will be set up

2. Other [classify according to covenant types used in the Legal Agreements]:

Conditions of disbursement* That a Project Implementation Manual will be prepared and approved by the Bank as a condition of

disbursement on the civil works components (excluding engineering and studies).* That in St. Lucia, a disaster management expert will be hired in the national emergency management

agency as a condition of disbursement for the "Strengthening Emergency Preparedness andResponse" component

* That in Dominica, an Operational Manual acceptable to the Bank will be prepared as a condition ofdisbursement for the Vulnerability Reduction Fund component.

Other* That the Governments will provide quarterly progress reports to IDA and will hold project reviews

with IDA supervision missions.* That the Governments will undertake to contract annual financial and technical audits for the project

components, and submit audit reports no later than six months following the end of the fiscal year.For the activities to be financed retroactively, such audits will be sent to the Bank no later thanDecember 31, 1999.

* That the Government will make staff available to the PCU, the relevant sector ministries, and thenational emergency management agencies (or their equivalent in each country) for satisfactoryimplementation of the components and to ensure compliance with Bank policies such asenvironmental and resettlement policies as needed.

H. Readiness for Implementation

[] The engineering design documents for the first year's activities are complete and ready for the start ofproject implementation. [.] Not applicable.

StKits & Nevis: The specifications and quantities of standard equipment, portable generators, smallrescue tools, electrical accessories, poles and supplies are ready. The retrofitting of shelters and otherfacilities will be contracted on the basis of an inventory of the damages. The feasibility study and generallayout of the facilities for the Emergency Operations Center are available. Terms of Reference (TOR) forvarious engineering assignments for detailed design and supervision of sea defenses, hospital facilitiesand road works are being prepared

St. Lucikc Complete designs of bridges at Caico and Marc Floissac and a detailed engineering proposalfor river training have been prepared. For the Cul de Sac Valley flood prevention and road raising works,full designs have been prepared, and tender documents are under preparation; tender documents for the

wage 24

provision of supervision services and review of the design are expected shortly. Tender documents forthe Hewanorra airport flood protection works, a hydrological study of the Vieux Fort river, and a detaileddesign for sea defenses are under preparation. Tender documents for the procurement of Bailey-typecomponents, launching equipment, and gabions are ready. TORs to assess in-house the frequency offloods and a plan to mobilize internal resources for supervision are being prepared. Tender documentsfor the elaboration of detailed design for Victoria hospital and the provision of supervision services havestill to be prepared; their status of preparation will be reviewed at negotiations. A complete list ofequipment for schools and libraries, with a rationale, specifications, quantities of equipment, and tenderdocuments for their procurement are being prepared.

Donnica: River training work is dimensioned: computers and river and flood simulation models will beprocured under the project together with drafting and surveying equipment to finalize the design andinspect the works. A feasibility study has been prepared by foreign experts for the sea defense andprotection of coastal erosion: bidding documents used in similar works will be adapted by consultants toconform to the Bank's Standard Bidding Documents and the detailed engineering and supervision of theseworks will be hired using TOR under preparation. The detailed design of the model community shelterwill be completed in consultation with the community and stakeholders. The retrofitting of shelters willbe made based on a simple inventory to be carried out by the Department of Public Works.

[] The procurement documents for the first year's activities are complete and ready for the start ofproject implementation. [i] Not applicable

The participating implementing agencies are familiar with the ICB documents of the Bank. There will bea procurement workshop in St. Lucia in January 1999 (open to the other program countries also) wherethe ICB documents will be reviewed and NCB and quotation forms for civil works will be adopted. Theagencies are also familiar with the standard package of documents for hiring consultants, and cases willbe reviewed in the procurement workshop to ensure readiness of the PCU and other agencies in hiring thevarious technical and engineering services to implement the works. In the case of the hospital facilities inSt. Kitts and Nevis, PAHO will be hired on a sole source basis to provide the technical input, preparationof bidding and supervision of the works.

[] The Project Implementation Plan has been appraised and found to be realistic and of satisfactoryquality. [.] Not applicable

PIPs were discussed and agreed upon during negotiations.

[ The following items are lacking and are discussed under loan conditions (Section G):

Comnliance with Bank Policies

t ] This project complies with all applicable Bank policies.t[] [The following exceptions to Bank policies are recommended for approval: The project

complies with all other applicable Bank policies.]

Task Team Leader/Task Manager: Eugene D. McC

Sector Director: Danny M.,7fie ger

C'ountry Director: Orsa4a, x6iantzop6uos

ANNEX 1Orpnization of Eastern Caribbean States

Emergency Recovery and Disaster Management Program

PROGRAM DESIGN SUMMARY

I.y.Slrfonac Indlcators Monltoring and Critial Assumptions2 ~~~~~~~~~~~ ~~~~Evaluation _ _ _ _ _ _ _ _ _ _ _

Sector-related CAS Goal: (from Goal to Bank Mission)Economic growth and poverty 0 No major disruptions in GDP due to natural National data on That economic growth will bereduction disasters growth, income, equitable and have a positiveSupporting infrastructure and gini coefficients impact on poverty alleviationsafeguarding the environmentProgram Purpose: Program Phasing: (from Purpose to Goal)1. To ensure that all five OECS 0 APL 2: Grenada & St. Vincent & the World Bank project That there is macroeconomic

member nations have adequate Grenadines can join when project preparation team stability in each countrysystems in place to prepare for preparation is complete and qualityand respond to disaster 0 APL 3: For all 5 countries upon assurance That institutional capacity inemergencies * L of: S if mechanisms emergency preparedness and

demnonstration of. (i) satisfactorymagentisuand

2. To set up a credit facility for completion of investments during firstany member nation in case of phases; (ii) sustained governmentsevere disaster emergencies commitment to disaster mgmt policies as

demonstrated by effective enforcement ofkey policies e.g. building codes & usinghazard analysis for land use planning; (iii)adequate maintenance of infrastructureparticularly vulnerable to disasters

* APL 4: Triggered by: (i) declaration ofdisaster emergency by govt at any timeduring program period; (ii) evidence thatgovt is committed to implementing disastermitigation policies.

Project Development Objective: Outcome/Impact-lndicators: (from Objective to Purpose)1. To strengthen key economic &

social infrastructure to minimize * Appreciable reduction in time for Monthly * That disasters will not strike alldamage caused by future natural restoration of key public services (water, implementation OECS countries at oncedisasters and reduce disruption electricity, basic health services, & schools) progress reportsof economic activity (pre- following a disaster. from eachdisaster works) * Smooth and effective disaster response implementing * That Grenada and St. Vincent &

1. To reconstruct & rehabilitate systems (early warning, shelter mgmt, relief agency to PCU the Grenadines will adequatelykey social & economic supplies, subsequent reconstruction & prepare their projectsinfrastructure following rehab. Etc.) during & after emergencies PCU quarterlydisasters to allow quick * Reduced cost to Governments of repair & monitoring andrecovery (post-disaster works) rehab of key infrastructure, & quick reporting

To strengthen the countries' resumption of economic activities followinginstitutional capacities to disasters.prepare for & respond todisaster emergencies in anefficient and effective manner

Project Outputs: Output Indicators: (from Outputs to Objective)1. Physical works completion in * Degree to which each physical works Monthly * That physical works are

prevention and mitigation component meets its original schedule implementation undertaken at technically2. Adequately staffed and * Paid staff in emergency management progress reports adequate standards

equipped national e-mergency from eachmanagpednationalemenrgencys agencies, with clear roles & responsibilities implementing * That national emergency

3. Early Warning Systems in p and adequate equipment & facilities agency to PCU management agencies havewith adequate equipment * Adequately equipped & staffed national sufficient authority and

4. Main public buildings meteorological services and system for early PCU monitoring leadership to take leading role inadequately covered by warning in place and reporting saer preparedness aninsurance * Insurance for critical public buildings

5. Functioning District Disaster 0 That communities in charge ofCommittees * Number of functioning District Disaster early warning use their offices

Committees; regularity of meetings; types and equipment appropriatelyof activities * That the governments pay

insurance fees* That communities are willing to

be involved in DisasterCommittees and takeresponsibilities before, duringand after emergencies

Project Components/Sub- Inputs: (budget for each component) (from Components to Outputs)components: That adequate project coordination1. Physical prevention, mitigation US$15-16 million Monthly and management teams are in placeand recovery works implementation in each country

progress reports2. Strengthening emergency US$3-4 million from each That adequate counterpart fundingpreparedness and response implementing is in place

agency to PCU3. Institutional Strengthening USS0.6-0.7 million That there is adequate capacity in

Quarterly reports the construction industry and that4. Project management US$1.5-1.6 million from PCUs to the contractors are well supervised

Bank5. For St.Kitts, Fast Disbursing US$2.4 That there is adequate govemmentcomponent commitment and resources to staff

national emergency managementagencies and operationalize them

That communities are willing toorganize and take actions indisaster preparedness andmitigation


Country Annex

ST. KITTS AND NEVIS

ANNEX A Detailed Project DescriptionANNEX B Estimated Project CostsANNEX C Project Management and ImplementationANNEX D Project Progress IndicatorsANNEX E Procurement and Disbursement ArrangementsANNEX F Statement of Loans and CreditsANNEX G Country at a Glance

29 ANNEX 2ASt. Kitts & Nevis

St. Kitts and NevisPROJECT DESCRIPTION

1. Fast Disbursing Component

The project will provide US$2.4 million in fast disbursing funds to the Government which will be used tofinance imports from a positive list of items required for recovery following Hurricane Georges.

The list is as follows:

Food grainsEdible oilsFertilizersSeedsAgricultural equipment and inputsCement and other construction materialsIndustrial machinery, spare parts and raw materialsPetroleum and fuel productsMedical equipment and supplies

These essential imports can be financed retroactively (the total amount of goods that will be financedretroactively under the project will be a maximum of 20% of the total loan amount), as long asappropriate procurement procedures acceptable to the Bank have been followed.

Implementing agency: Project Coordination Unit in Ministry of Finance, Planning and Development



2. Physical Prevention and Mitigation Works

This component aims to strengthen and/or rehabilitate key public infrastructure to enable the country toresume basic operations, and to reduce their vulnerability to future hazards. In the social sectors, it willcover hospitals and shelters, and in the economic sectors, it will cover water, electricity, roads, and theairport. Technical assistance will be provided to the different implementing agencies to prepare bids, andaward and supervise contracts.

a. Reconstructaonlrehabiitation of hospitalsA new ward with a 40-bed capacity will be constructed for the Joseph N. France Hospital, the mainhospital on St. Kitts. Technical assistance in the design, engineering and bidding process, as well as inthe specialized supervision of hospital construction, will be provided through a partnership with the PanAmerican Health Organization (PAHO), which is currently assisting the European Union in the definitionof a long-term solution for the hospital. On Nevis, the resilience of Alexander Hospital to disasters willbe strengthened by installing a back-up generator. In addition, two generating units for health postsrequiring refrigeration of medicines will also be installed on Nevis.

Implementing agency: Ministry of Health

b. Construction of sheltersEight shelters will be constructed on St. Kitts and two on Nevis. The shelters will include toilets, kitchenand facilities to accommodate 50 to 100 people, and will be designed to withstand high winds andhurricane damage. The facilities might be used to lodge crews of neighboring countries assisting in therelief and restoration of other public services following a disaster (when people have returned to theirdwellings). Between hurricane seasons, the shelters will serve as community centers or be used for othercommunal activities.

Implementing agency: Ministry of Communications and Works

c Improving the reliability of water supplyWater supply is severely affected by the interruption of electricity after hurricanes, interruptions whichcan last several days. The reliability of water supply following a disaster will be improved by providingback-up generators--on St. Kitts, 11 wells supplying the water distribution system will be equipped withback-up generators, and on Nevis, 12 stand-by 50kv generators will be installed. Water storage facilitiesand other equipment will also be installed to ensure that water supply is uninterrupted following disasters.This will include setting up a pipe-rack storage facility for the Water Department warehouse on Nevisand small tools and portable storage tanks for both Water Departments on St. Kitts and on Nevis. Thiscomponent will also include a study on how to improve the intakes to mitigate future damages andimprove the operation of the intakes during heavy rains.


d Improving electicy supplyThis component will strengthen electric power supply by rehabilitating the roof of the St. Kitts PowerStation and supplying poles, tools and equipment to restore electricity supply. It will also include a study


on the feasibility of placing underground transmission lines. The tentative allocation of costs is asfollows:

i) Poles (St. Kitts) US$200,000ii) Conductor and distribution line accessories (St. Kitts) 100,000iii) Roof for Needsmust Power Station 200,000iv) Truck and small tools 100,000v) Feasibility of underground feeders 100,000vi) Nevis: poles, small tools and accessories 200,000vii) Nevis: rental equipment 50,000viii) Emergency response drills 50,000

Total: US$1,000,000

Poles, conductor and distribution line accessories for St. Kitts and poles, small tools and accessories forNevis will be financed on a retroactive basis for a total of US$500,000.

Implementing agency: Electricity utility company

e. Roads and coastalprotectionThe project will contribute to the protection of vulnerable sites along roads and specific coastal areasagainst recurrent disasters. As a first step, studies will be carried out on the following: beach restorationand erosion control in specific areas; slope stabilization, coastal and inland erosion in several areas on St.Kitts and Nevis, particularly, the detailed engineering of vulnerable sites in Old Road and Saddlers on St.Kitts, and the Newcastle area on Nevis; and a study on water resource management of small, steepcatchment areas. Based on these studies and recommendations, a priority list of investments will bedeveloped, which will include cleaning up beaches; culverts, gabionage protection and clearing of watercrossings, particularly in Southeast Nevis; and a program for periodic flood protection works in the ringroad. Bailey-type components will be procured on St. Kitts. The first step in protecting the airportlanding strip and the ring road on Nevis will be carried out through the completion of detailedengineering for sea defenses along these sites. In addition, an assessment of sea and beach movementsand their potential impact on nearby tourist areas, fishing outposts and the airport will also be carried out.


f. Air traffic control towerThe air traffic control tower at Robert A. Bradshaw International Airport which was lost during thehurricane will be replaced by a mobile unit procured from Montserrat. This component will be financedthrough retroactive financing (the mobile control tower has already been transferred to St. Kitts) for atotal of US$75,000.

Implementing agency: Airport Authority



3. Strengthening NEMA and the Emergency Operations Center

a. Construction of an Emergency Operations Center ($800,000)Disaster management operations are best coordinated when all major players are located in one place.The heart of these operations needs to be in close proximity to technical ministries, and the authoritiesresponsible for coordination and management need to be equipped with modem communicationsequipment and reliable information sources. Under the project, a new Emergency Operations Center(EOC) will be constructed in Basseterre, located outside hazardous areas, accessible during adverseweather conditions, and built to earthquake- and hurricane-resistant standards (to withstand at least aCategory 3 hurricane). The new building will serve as the headquarters of the National EmergencyManagement Agency (NEMA). The EOC will have modem, state-of-the-art disaster managementfacilities, and will contain a modest kitchen, bath and sleeping quarters, and have a radio/communicationsroom, storage rooms for some relief supplies, water storage/cistern and a backup generator. The EOCwill also be used for training and simulated disaster drills for district level communications specialists,rescuers and community volunteers.

As this is the only country participating in the Disaster Management Program where a new EOC is beingfinanced, the building will also house a regional training facility for emergency managers. Variousregional training courses will be held at this center, and demonstrations of disaster-resistant constructionand state-of-the-art communications and information equipment will be used as a model for the sub-region. Construction costs for the EOC are estimated at US$800,000.

b. Specialized disaster equipment and loss reduction materials ($160,000)Immediate availability of certain materials like reinforced plastic sheeting can limit or prevent secondarylosses. Because infrastructure damage often impedes the movement of relief and assistance materials fordays, the project will ensure the ready availability of limited stocks of emergency supplies and "lossreduction materials" such as portable generators, water purification equipment and storage tanks,reinforced plastic sheeting to cover valuable facilities, and search and rescue tools and protective gear forrescuers and community volunteers. Some of this equipment will be stored in the EOC, and some will belocated with the District Disaster Committees at the community level.

ca Island-wide emergency communications system ($80,000)A dedicated system is needed to communicate among national level agencies, and emergencymanagement committees at the national and district levels, as this critical function cannot rely on otheragencies, especially during crises. Proposed communications equipment will include: 12 VHF BaseStations one for each District Emergency Committee; two repeaters to link all the base stations; HFtransceivers; hand held radios (50); antennas; marine radio base station; a hand held, marine frequencycitizen band radio and spare; an antenna tower and installation; automatic and manual tuner for antennas;backup generators for the communications systems; rotators, cables, and other spares; and vehiclemounted mobile radios and whip antennas.



4. Developing an Effective Early Waruing System

This component will aim to establish an effective early warning system to alert appropriate governmentauthorities and the public of adverse weather conditions to provide for the protection of life and property.The island of Antigua provides weather forecasts and warnings for St. Kitts and Nevis. The St. KittsMeteorological Service is responsible for collecting hourly weather observations at the St. Kitts Airportand providing those observations to the Antigua Meteorological Service. These observations are criticalinformation for aircraft traffic approaching and departing the airport.

The St. Kitts Meteorological Service is also responsible for disseminating forecasts and warnings to alertappropriate government authorities, the media and the public of adverse weather conditions to provide forthe protection of life and property. The ability to collect weather observational data and disseminatewarnings on a continual and timely basis will provide inhabitants with sufficient time to take measures tosignificantly reduce the loss of life and minimize property damages. Rehabilitating the early warningcapabilities of the National Meteorological Service (NMS) will assist St. Kitts in mitigating the effects ofextreme natural weather events such as hurricanes, tropical storms and floods.

This sub-component will: (i) strengthen the National Meteorological Service; (ii) develop a Ham WeatherRadio Observation Network; and (iii) provide technical assistance and training in meteorology andhydrology.

a. Supportfor the National Meteorological Service ($135,000)St. Kitts and Nevis was devastated by the impact of Hurricane Georges. The hurricane destroyed allmeteorological sensors and equipment at the St. Kitts Airport. The air traffic control tower which housedoperations for the Meteorological Station was also destroyed. The NMS will be strengthened through:v Replacement of meteorological sensors and equipment at the St. Kitts Airport, including installation

costs, such as: thermometers, thermohygrograph, large Stevenson Screen, rain gauges, tilting syphonrain recorder, anemographer recorder, anemometer, wind vane, wind dials, mercury barometer,aneroid barometer, barograph, S.T.U. & Antenna, uninterruptable power supply (UPS), electricgenerator (back-up). A specialized consultant will be hired to provide expert advice on procurement,installation and maintenance of equipment.

* Purchase of three PC Pentium (200 MHz minimum) computers with 17-inch monitors and 56K speedmodems and Internet connectivity, as well as two (laser quality) printers, to create the basis for theacquisition and dissemination of critical meteorological data and products from regional andinternational centers.

* Installation of two additional phone lines; one dedicated for Internet access at the NMS at the St.Kitts Airport and the second dedicated for Internet access at the Meteorological Station at the NevisAirport, and a fax machine.

* Training associated with new equipment.

b. Development of a Ham Weather Radio Observation Network ($40,000)Development of a network of 5-10 ham weather radio operators dispersed throughout the country willprovide critical auxiliary weather observations such as wind, gusts, barometric pressure and rainfall to theNMS and the U.S. National Hurricane Center in Miami. Providing ham radio operators, law enforcementor fire department officials with reliable instruments capable of measuring weather conditionsautomatically also increases the chances of obtaining critical information before, during and after a


hurricane since these are likely to represent the only operable communication pathway to and from ahurricane devastated area. This sub-component will finance: (i) weather stations with solar panelsintegrated with a modem and an Automatic Weather Packet Reporting System; (ii) transmitters,generators, and spare parts and maintenance; and (iii) training associated with development of the HamWeather Radio Observation Network.

ca Technical Assistance and Training (S25,OOO)With the recent advances in science and technology, effective and efficient up-to-date training of staff inoperational meteorology and hydrology is critical to maximize the information from new technology andto minimize error of misinterpretation of observational data. This sub-component will provide for: (i)training courses, symposiums and workshops associated with computer technology, basic meteorologyand equipment maintenance (repair and preventive); and (ii) technical assistance related to operations andmaintenance of meteorological equipment.

Implementing agency: National Sea and Airport Authority and the National Meteorological Service



5. Community Based Disaster Management

This component aims to organize, train and support new and existing District Disaster Committees tomobilize and educate communities in disaster preparedness, mitigation, response, and recovery. Theultimate mission of a National Disaster Plan is to save lives and protect property. The cornerstone ofsuch a plan is the education, empowerment and active involvement of the local community in the plan'smitigation, preparedness, response and recovery activities. It is the citizens of local communities whowill personally experience, or have already experienced, the devastating effects of disasters. A public/private partnership, with local citizen participation in planning, decision-making and the implementationof the National Disaster Plan, is critical to quick and effective recovery from the effects of a disaster.This partnership is also necessary for awareness and understanding of community's responsibilitiesbefore, during and after a disaster.

T-here are 12 disaster districts on St. Kitts and five districts on Nevis. The districts on St. Kitts do nothave a formal structure, like District Disaster Committees, for disaster preparedness and response.Management of many emergency shelters following Hurricane Georges was accomplished solely throughad-hoc responses by compassionate and well-meaning volunteers (although one district, St. Paul's,mobilized volunteers very quickly and managed to put together a remarkably well-organized disasterresponse system due to the initiative mainly of one individual). In contrast, on Nevis, there are structuredDistrict Committees with volunteer chairpersons, a health officer, scouts, and representatives of the policeand churches. The Nevis Disaster Committees also have strong training programs.

The absence of an overall system of strong and active local disaster committees nationwide, particularlyon St. Kitts, presents a serious weakness in the Federal Government's disaster management system, andcould undermine its capacity to mitigate the loss of life and property in future disasters. There is anurgent need to organize, train and support disaster committees on St. Kitts, continue the strengthening ofthe committees on Nevis, and to tie all committees into a strong National Disaster Plan.

The Caribbean Disaster Emergency Response Agency (CDERA), the U.S. Office of Foreign DisasterAssistance (OFDA), the U.S. Federal Emergency Management Agency (FEMA), and the InternationalFederation of Red Cross and Red Crescent Societies, are some of the agencies that could provideessential training for key District Disaster Committee members. Under the project, Disaster Committeeswill be provided the following types of training: (i) organization and functions of a District/CommunityDisaster Committee; (ii) training in "Surviving the Next Disaster" (special training available through theRed Cross); and (iii) other skills such as emergency search and rescue, donations management, disaster-related needs of seniors and persons with disabilities, etc.

Disaster Committees will be provided with essential radios and other search and rescue equipment,potable water delivery systems, etc. (financed under section 3b. Strengthening NEMA and EOC).Physical facilities are necessary for storage of disaster supplies and emergency response equipment at thecommunity level. In addition, committees need a dedicated space to meet and to establish an operationscenter during an emergency. Under the project, NEMA and the Ministry of Community Developmentwill ensure that the equipment provided to communities is stored in a safe place and that committees havea space to meet and organize.

Implementing agency: NEMA and Ministry of Community Development


St. Kitt and NevisPROJECT DESCRIPTION

6. Institutional Strengthening

a. HazardAnalysisIVulnerability Mapping(US$60,000)There is a need to more precisely identify hazards and vulnerability to protect current and futuregovernment and private sector investments in St. Kitts and Nevis. Once recognized, vulnerable areas canbe identified for mitigation activities and held to an appropriate standard for development planning.Existing information in government ministries and in private companies need to be consolidated andadditional research done to identify all hazards to be analyzed. The project will support the developmentof a comprehensive hazard and vulnerability map for St. Kitts and Nevis; the preparation of an economicand population vulnerability analysis; and training for government, private sector and communities toidentify strategies to use the information for development planning across sectors and for disasterpreparedness and mitigation.

b. Vulnerability Reduction of Public Buildings(US$150,000)The main objective of this component will be to reduce potential fiscal liabilities incurred by theGovernment in case of catastrophic losses by efficiently insuring its buildings/facilities and reducing theirvulnerability. This component will consist of technical assistance to: (i) assess the value of theGovernment's building/facilities; (ii) evaluate the risk of potential damages to buildings/facilities basedon their location and quality of construction and maintenance; (iii) determine optimal vulnerabilityreduction measures through mitigation/retrofitting investments and/or an insurance strategy to minimizethe cost of insurance for a given level of risk; (iv) consider alternative financial instruments (e.g.catastrophic bonds and weather hedges); (v) review existing regulatory requirements covering buildingcodes, siting and land use planning, and recommend improvements to current practices; and (vi) makerecommendations with regard to the development of an insurance sector regulatory framework, includingprudential solvency and reserve provisions for disasters. The project will thus strengthen the capacity ofthe Government to reduce or spread the risk of catastrophic loss.

c. Building Codes ($50,000)The project will aim to strengthen the resilience of buildings, public and private, to disasters such ashurricanes in the country through adoption of a national building code and its effective enforcementthrough proper building inspection. The Organization of American States (OAS), as executing agency ofthe Caribbean Disaster Mitigation Project (CDMP) and with funding from USAID, joined the UnitedNations Centre for Human Settlements (UNCHS) in a technical assistance program to introduce a modelbuilding code in the OECS countries. The Government is committed to enacting such a model buildingcode, and will use the technical assistance provided through the OAS program to adopt a nationalbuilding code (modified from the model building code to fit the specific circumstances in St. Kitts andNevis) and work out a firm timetable for its full adoption and enforcement. In addition, an assessment ofthe present situation regarding the enforcement of building inspection will be carried out (appropriateconsultants have already been identified by OAS) and recommendations will be made as to what steps theGovernment will need to take to improve enforcement.

Implementing agency: National Emergency Management Agency

ANNEX 28St Kitt and Nevis SL KCt N"

ESTIMATED PROJECT COSTS

USSmilions Base Cods Physical Price TOTAL________________________________________ Local Foreign Total Confng. Conting. COSTS

I Physical Recovery & Mitigation Works 1.63 3.30 4.93 0.33 0.10 5.35Hospital 0.75 0.70 1.4S 0.14 0.03 1.61Construction of new ward & equipment 0.75 0.50 1.25 0.13 0.03 1.40

* Supervision by PAHO 0.20 0.20 0.01 0.00 0.21Sheters 0.48 0.32 0.80 0.08 0.02 0.90Water supply 0.45 0.45 0.01 0.46-Nevis water intakes study 0.01 0.05 0.05 0.00 0.00 0.05

_Electrcity 0.90 0.90 0.02 0.92_ Feasibility study for underground electricity wiring 0.01 0.09 0.10 0.01 0.00 0.11Roads and coastal protecton 0.36 0.54 0.90 0.09 0.02 1.01-Coastal erosion mnodeling 0.02 0.18 0.20 0.01 0.00 0.21Airport trafflic control tower 0.08 0.08 0.01 0.00 0.08

2 Strengthning Emergency Prepadness & Response 0.06 1.28 1.34 0.09 0.03 1.45a. Strengthening NEMA and EOC 0.00 1.04 1.04 0.08 0.02 1.14Constcion of EOC 0.80 0.80 0.08 0.02 0.90Specialized disaster equipment for EOC 0.16 0. 16 0.00 0.16Island-wide emeigency communicatons system 0.08 0.08 0.00 0.08

b. Developing Effectve Early Waming Systems 0.00 0.20 0.201 0.00 0.00 0.21Meteorological equipment ,0.14 0Q14 0.00 0.14Weather Radio Obsevation Network* 0.04 0.04 0.00 0.04

1- TA and training 0.00 0.02 0.03 0.00 0.00 0.03

c. Community Based Disaster ManagementStrengthening Dist ctDisaster Commitees 0.06 0.04. 0.10 0.01 0.00 0.11

3 Inditutional Strengthening 0.03 0.23 0.261 0.011 0.01 0.28Hazard analysis/vulnerability mapping 0.01 0.05 0.06' 0.001 0.00 0.06Vulnerability reduction of public buildings 0.02 0.14! 0.15 0.01: 0.00 0.16'Building Code 0.01 0.05' 0.05 o.ool 0.00 0.05

4 Fat Disbursing Component _ _ _ ____Posltive list of essential imports 2.40 2.401 2.40

S ProJect Management 0.18 0.30 0.49_ 0.02 0.01 0.52Finandal manager & project management services 0.08 0.12 0.20 0.01 0.00 0.21Equipment 0.01 0.04 0.05 0.00 0.05Workshops 0.03 0.03 0.00 0.00 0.03Technical audits 0.06 0.06 0.11 0.01 0.00 0.12Financial audits 0.01 0.09 0.10 0.01 0.00 0.11

TOTAL 1.90 7.51 9.41 0.45 0.14 10.00

N.B. Figures may not add up due to rounding I_ PhysWcal contingendes a 10% for cM! works; 5% for consutandcies; 0 for goods ___ _

Prce contingencies = 2% =

38 ANNEX 2CSt. Kitts & Nevis

St Kitts and Nevis

PROJECT MANAGEMENT AND IMPLEMENTATION

Project coordination and managementA Project Coordination Unit (PCU) will be set up in the Ministry of Finance, Planning andDevelopment. It will consist of a Project Coordinator, appointed by the Ministry, who willcoordinate and monitor implementation progress according to agreed upon performance indicators,and report to the World Bank. The project will finance a project Financial Manager for the durationof the project who will be familiar with Bank procedures and guidelines for administration andmanagement of funds. Consulting services will be hired (either through an individual or a firm) toassist the Project Coordinator in managing particularly the engineering and contract managementaspects of the project.

* The Government will set up a National Disaster Mitigation Council to serve as a steering committeeto coordinate policy issues, recommend the selection of priority investments, and assist in carryingout government commitments. This council will be chaired by the Pernanent Secretary of theMinistry of Finance, Planning and Development (or his representative) and will consist ofrepresentatives of the relevant line ministries, as well as the Chamber of Commerce.

* A Deputy Manager in the PCU will be appointed by the Government to coordinate implementationactivities in Nevis.

Project implementation* Each project component will be implemented by the respective line ministry responsible for that

component. The National Emergency Management Agency (NEMA) will be the implementingagency for the institutional strengthening components. Implementation of the new hospital ward willbe carried out by Pan American Health Organization (PAHO) under special arrangements.

- The implementing agencies will provide progress reports to the PCU on a monthly basis.- Procurement, contracting, and payments to contractors will be undertaken by the respective

implementing agencies using World Bank guidelines, with the assistance of the PCU wherenecessary.

Project superwision, reporting and audit requirements* A Project Implementation Manual will delineate financial management and control procedures,

including TORs prepared by the PCU for internal and external audits acceptable to the Bank.* Each implementing agency will forecast the amounts to be withdrawn from the Special Account on a


* The PCU will, on a periodic basis, supervise the implementation of each component, including thephysical investment components, and undertake periodic field visits.

* The PCU will make quarterly reports to the World Bank, including a statement of sources and uses offunds, ensuring that all project guidelines are being followed.

* Financial audits for all accounts and components will be carried out annually. Technical audits willbe carried out for large civil works that do not include technical audits as part of the supervisionprocess. Audit reports will be submitted to the Bank no later than six months after the end of eachfiscal year.

39 ANNEX 2DSt. Kitts & Nevis

St. Kitts and NevisPROJECT PROGRESS INDICATORS

:Comp0onent First Year Second Year Third Year | Total

Hospital _ _ new ward 40 bed-ward ready

Shelters 4 shelters 4 shelters 2 shelters 10 shelters constructedWater supply

Power back-up for pumps 12 pumps supplied 10 pumps supplied 22 pumps with back-up capacityWater intakes study . study completed

ElectricityPower station roof roof repaired roof repairedFeasibility study for study completed study completedunderground cablesDrills 1 practice drill I practice drill I practice drill 3 drills completed

Roads/coastal protectionFeasibility studies studies completed studies completedRoad protection works works 15% completed works 75% completed works completed priority roads/coastal areas

protectedAirport traffic control tower in functioning traffic control tower

placeEmergency Operations Center bidding, award of center completed functioning EOC

contract, commencementof works

NEMA Equipment & loss equipment procured NEMA & disaster committeesreduction materials equipped with communications

equipment & loss reductionmaterials

Early Warning System procurement and training EWS in place with trained staffinstallation of equipment;training

Vulnerability Reduction of study completed study completedPublic BuildingsHazard analysis study completed study completed

40 ANNEX 2ESt. Kitts & Nevis

St. Kitts and NevisPROCUREMENT ARRANGEMENTS

The civil works under the project consist of sea defenses, road protection, and buildings. For theseworks, ICB procedures will be used for larger contracts. Leasing of equipment for cleaning beaches,road crossings and bridges will be made on the basis of priced quotations. Consultancy services includestudies on potable water intakes, underground electricity studies, and technical assistance on disasterpreparedness. PAHO will be hired on a direct contracting basis for design and supervision of hospitalfacilities under the project for an amount up to US$210,000. A contract management expert and afinancial specialist will be appointed to the Ministry of Finance, Planning and Development to assist inthe implementation of the project. Technical and financial audits will be financed from the loanproceeds.

Goods will consist of small tools, plastic sheeting, radio communication and meteorological equipment,Bailey-type bridge components, portable generators, roofing materials, poles and electricity distributioncable and accessories. The project will include a Fast Disbursing Component of about US$2.4 million tobe disbursed against a positive list of goods, including construction materials and other items agreed uponduring negotiations. Procurement of these goods will be made through ICB if the estimated cost of thepackage is US$1 million or more. For packages estimated to cost less than US$1 million, theGovernment will use national procurement procedures and private sector commercial practices whichwere examined by the Bank and found to be acceptable. Retroactive financing up to an aggregate amountof US$800,000 will be used to reimburse the Government for expenditures incurred in the procurementof electrical materials and supplies purchased by the Electricity Department for urgent repairs ofdistribution and transmission lines, and for the transport and insurance of a mobile air traffic controltower shipped from Montserrat immediately after the emergency. Retroactive financing will also be usedto reimburse the Government for essential imports required for reconstruction, including housingconstruction materials, procured following the emergency under the Fast Disbursing Component. Thetotal amount of retroactive financing under the project will be 20% to the total loan amount, orapproximately US$1.6 million.

The following methods will be used: (i) International Competitive Bidding (ICB) for major civil worksabove US$300,000, and procurement of large goods packages (above US$100,000); (ii) NationalCompetitive Bidding (NCB) for small works under US$300,000; (iii) Limited International Bidding forspecialized meteorological equipment or construction materials with a limited number of providers; (iv)three quotations from qualified contractors for civil works under US$75,000; (v) international shoppingfor acquisition of standard equipment (below US$100,000); and (vi) national shopping for procurementof standard equipment (below US$20,000).


Table 1: Project Costs by Procurement Arrangements(in US$ million equivalent)

Expenditure Procurement Method Total CostCategory ICB NCB Other N.B.F (including contingencies)1. Works 3.30 0.90 4.20

(2.15) (0.67) (2.82)

2. Goods 0.85 1.00 1.85(0.85) (0.85) (1.7)

3. Services 1.21 0.05 1.26(1.21) (1.21)

4. Fast disbursing 2.40 2.40Component (2.40) (2.40)

5. Operating 0.28 0.28Expenditures (0.28) (0.28)

6. Front-end fee 0.085 0.085(0.085) (0.085)

Total 4.15 0.90 4.98 0.05 10.08(3.00) (0.67) (4.83) (8.50)

Note: Figures in parenthesis are the amounts to be financed by the Bank loan/IDA creditN.B.F. = Not Bank-financed

Table 2: Consultant Selection Arrangements

Consultant Selection Method Total CostServices (including

QCBS QBS SFB LCS CQ Other N.B.F. contingencies)

A. Firms 0.59 0.14 0.21 0.94(0.59) (0.14) (0.21) (0.94)

B. Individuals 0.27 0.05 0.32(0.27) (0.27)

Total 0.59 0.14 0.48 0.05 1.261 (0.59) (0.14) (0.49) (1.21)

Note: Figures in parenthesis are the amounts to be financed by the Bank loan.QCBS = Quality- and Cost-Based SelectionSFB = Selection under a Fixed BudgetN.B.F. = Not Bank-financedOther = Selection of individual consultants (hiring of PAHO).


Table 3: Thresholds for Procurement Methods and Prior Review

Expenditure Contract Value Procurement Review Estimated TotalCategory (Threshold) Method Value Subject to

US$ thousands Prior Review(USS million)

1. Works >300,000 ICB All 3.30< 300,000 NCB First two< 50,000 Quotations First two

2. Goods > 100,000 ICB/LIB All 1.85< 100,000 International Shopping First two 0.50

< 20,000 Local Shopping First two 0.20

3. Services 100,000 QCBS All 0.59> 25,000 Individuals All 0.24

4. Fast Disbursing > 1,000,000 ICB All Not expectedComponent

< 1,000,000 Commercial practices Ex-post

Total value of contracts subject to prior review:

Status of Bank Group Operations in St. Kitts and Nevis

Difference

Between expectedOriginal Amount in US$ Milions and actual

Fiscal disbursemnts a/Project ID Year Borrower Purpose

IBRD IDA Cancellations Undisbursed Orig Fro Rev'd

Number of Closed Projects: 0

Active ProAect0KM-PE-8065 1991 GOVERNMENT AG DEV SUPPORT l S0 l S0 0.00 .31 .30 0.00

Total 1.50 1.50 0.00 .31 .30 0.00

Active Proiects Closed Proiects TotalTotal Disbursed (IBRO and IDA): 2.72 0.00 2.72

of which has been repaid: .22 0.00 .22Total now held by IBRD and IDA: 2.78 0.00 2.78Amount sold 0.00 0.00 0.00

Of which repaid °0.00 0.00 0.00Total Undisburs d .31 0.00 .31 f

a. Intended disbursements to date minus actual disbursements to date as projected at appraisal.

Note:Disbursemnt data Is updated at the end of the first w"k of the onth.

GeMam by dhe Op _d Infonmdon System (OIS)

St. Kitts and Nevis at a glance lommSt Kite Lain U0Pne

POVIERTY and SOCIAL and Ano mUddle-Nes & Cadb. h nme Developmlt dlamond

1917Popadion. mki-wr (mlona) 0.04 404 571 ULe apectancyGNP per capi (Alas meuod; USS) 6,160 3.60 4,520GNP (Alis m.d, US$ bEbl) 0.25 1.917 2,564

Average annual grow, 1991197

Populo X) -0.4 1.7 1.5Labor foe ( 2.3 1. GNP Groan

per primaryMost recet esamate (at yea avaale, 10911-97) capita enrolmntPovrty (% olf oduaIon blbw nalnal oveo fw) 25Urban popuaion (% o otol population) 34 74 73Ulh olency at birh h(yeas) 70 70 70Infant mortality (per 1,000 Ovem bbs) 22 32 30Child malnutriton (% ofchldn under 5) Acess to sah waterAccess to sale water (% ofpouation) 73 79

iterac (% ofpoulafton o 15) 10 13 15Gross primarv enrollmnt (% of'school-age Populaton) 111 107 St ardNews

Male .. .. .. - /Upper-ikdle4ncomo groupFemale

KEY ECONOMIC RATIOS and LONG-TERM TRENDS

11976 19#6 1106 109117Economic rafts'

GDP (US$ biions) 0.03 0.09 0.25 0.27Gross domestic investmenUGDP 27.3 45.1 44.9 TradeExportsofgoodsand sernes/GDP 81.4 51.5 51.3Gross domestksaicngs/GDP 10.6 18.0 22.4Gross national saving/GDP 22.0 18.6 24.4

Current account balancelGOP -6.2 -26.5 .20.6 Do0n0511\Intbrest paymentsaGDP 0.0 0.4 0.8 0.8 S k westmentTotal debUGDP 10.6 18.0 23.7Total ddt serviceports 4.6Present lue of detGDP 16.2Present value of ddbUexpott 30.8

Indteness1976-66 1967.97 1996 1997 101402

(avwrae annual growth)GOP 4.8 4.9 6.3 7.0 St K/is and NosGNP per capita 4.8 5.0 4.7 8.8 - cUpper-mo ,income groupEtVorts ofgoods and serces 3.9 3.2 7.9 6.6

STRUCTURE of the ECONOMY1976 1986 1096 1017 Grow rates output and Investment %)

(X of GDP)I4Agriculture .. 10.8 5.2 5.1 4Industry 24.7 24.6 24.6 20

Manufaturing 15.4 10.3 10.1 oSernces 64.5 70.2 70.3 o, _ i 14 0 01 07

Private consumption 89.6 40.3 35.3 oGenral government consumption 19 .8 41.7 42.3 GDI ° GDPImpos of goods and services 71 78.6 73. 8

1976-56 19#7-97 19 1997 Gowh of axporta and Imports (%)(avwage annual gom0)Agriculture -2.3 0.6 10.7 22.8 30Industry 2.9 3.9 4.7 10.2

Manufacturing -0.1 1.2 4.5 18. sServices 8.3 5.7 6.3 4.1

Private consumption 7.0 -0.8 5.5 4.2 r i General oovemment consurnpton 5.1 14.6 18.3 8.7 <Gross domestic investment 1.8 4.4 6.2 6.6 -sImports of goods and sercs 4.5 3.0 12.9 0.6 - vons °knporsGro natlion poduct 3.9 4.6 44 8.7

Not 1997 data are priminry estimates.

* The damonds show brw key Indicators In tle cotry (in bold) compared with its Income-group are. Ifd are mIssng, the damond willbe hcomple.

St. Kitts and Nevis

PRICES aW GOVERNMEN FANCE1576 1K 15K 1557 i9 9on( %)

(% dflj 1Consume pri .. 0.0 2.0 8.9knpcltGDdellatar .. 10.7 .8 0 3. 2

Cwrent re v e n u ... . 45.3 46.7 ..Cunrent budget bajance .. .. 3.6 4.4 GOP dIStr CcPOverall surplusldsfcit .. .. -3.7 -10.1

TRADE

(USS millIons) 1576 1988 1999 117 Export and Import levels (UtS mUllonaTotal exports (fob) 39 47

Sugar .. .. 13 15Bevrages and tobacco 0 1 ISOManufactures .. .. 19 24

Tota impo"t (off)14 2 0Food 23 25 soFuel and nergy .. .. 8 8 Capital goods 40 43 a

Export price index (1995-100) 4 6Import price index (1995-100) 11E *Eors * npcflTerms of trde (1995-100)

BALANCE of PAYMENTS

(USS millions) 1976 198 15 19"? Curant account balncto GOPM mo%Ex-orts of goods and se3rces 57 127 139 cInmorts of goods and serAces 74 193 201Resource balance . -17 47 41

Net income -1 -16 -14Notcurrenttransfers 12 17 19 9I I ICurrent account balance . 4 4S -56 205.

Financing items (ne) 7 es 52Changes innet reserves -1 -1 3

memo:Reserves including gold (USS millions) .. .. 38 41Convesion rate (DEC, 1ocaLVSS) 2.6 2.7 2.7 2.7

EXTERNAL DEBT and RESOURCE FLOWS1976 1U 1t99S 1557

(USS millions) ComposItlon of total debt, 1996 (US$ milliorn)Total debt outstanding and disbursed 3 17 58

IBRD 0 0 1 1 G2 A1IDA 0 0 2 1 F:4 32

Total debt service 0 1 6IBRD 0 0 0 0IDA 0 0 0 0

Composition of not resouroe flowsOffical grwnts 2 3 2 E: 20Offcial creditors 1 4 4 20Privabt creditors 0 0 2Foreign direct investment 17Portfilo equity 0 0 0

World Bank programCommitments 0 0 0 0 A-NRD E - BlatalDlsbuusement 0 0 0 0 9-DA D -Othr muWtie F - PrivPincipal repaments 0 0 0 0 C-3Ff G - ShbrmNot flows 0 0 0 0bitest panb 0 0 0 0Net transfers 0 0 0 0

World Bank 10/1/98


Country Annex

ST. LUCIA

ANNEX A Detailed Project DescriptionANNEX B Estimated Project CostsANNEX C Project Management and ImplementationANNEX D Project Progress IndicatorsANNEX E Procurement and Disbursement ArrangementsANNEX F Statement of Loans and CreditsANNEX G Country at a Glance

47 ANNEX 3ASt. Lucia

St. LuciaPROJECT DESCRIPTION

1. Physical Prevention and Mitigation Works

This component would aim to strengthen and/or rehabilitate key public infrastructure to reduce theirvulnerability to hazards such as land slides, sea swells, storms surges, floods, and hurricanes. It wouldalso finance the retrofitting of public buildings used as shelters (many of which are vulnerable in theirexisting state), and buildings critical to safety and public well being (such as hospitals). Environmentalassessments will be carried out for all civil works.

a. Hewanorra airportflood protection worksFlood protection works will be carried out, consisting of reinforcing the embankment of the Vieux Fortriver to prevent the river from going through the old bed. The engineering study will includehydrological assessment of river, and detailed engineering to prepare a sea defenses project to protectboth the airport landing strip and the ring road. An assessment of sea and beach movements and theirpotential impact on nearby tourist areas and the airport will also be carried out.

Implementing agency: Ministry of Communications, Works, Transport, and Public Utilities inconjunction with the St. Lucia Air and Sea Ports Authority (SLASPA)

b. Bridges and river trainingBridges and river training works will be carried out at: (i) Marc Floissac, and (ii) Caico including thelaunching of a Bailey-type bridge, a new abutment and wingwalls, and river training. Additional studieswill be carried out to assess the frequency of floods and complete the design for the bridges. The projectwill aim also to strengthen the capacity of the Ministry of Communications, Works, Transport, and PublicUtilities to carry out bridge works through the procurement of about 60 meters of Bailey-typecomponents and the replenishment of the gabions stock, which will enable the Ministry to respondquickly to emergency flood situations.Implementing agency: Ministry of Communications, Works, Transport, and Public Utilities

c. Cul de Sac Valley flood prevention worksThe project would finance bridge construction, drainage and embankment works for Cul de Sac Valleyand raise the West Coast road.Implementing agency: Ministry of Communications, Works, Transport, and Public Utilities

d. Supplementary reservoirfor Victoria HospitalA supplementary water reservoir at La Toc Road will be constructed to ensure water supply to VictoriaHospital, including construction of a gravity-fed system or other system to connect the reservoir to thehospital.

Implementing agency: Ministry of Health, Human Services, Family Affairs and Women


e. Disawler Management Programfor schools and libraries (US$0.74 million)The project will establish a disaster management program for schools and libraries, which includes but isnot limited to the retrofitting of schools used as shelters and the installation of sanitary facilities. Thesub-component would include three items: (i) capacity-building; (ii) procurement of emergencyequipment; and (iii) security of school plant and facilities.

Implementing agency: Ministry of Education, Human Resources Development, Youth and Sports



2. Strengthening the Office of Disaster Preparedness

The project would strengthen the capacity of the Office of Disaster Preparedness to prepare itself and thepopulation at large to respond quickly and effectively in emergencies.

a. Technical Assistance to the national Office of Disaster Preparedness ($175,000)The project will strengthen human resource capacity in the Office of Disaster Preparedness (ODP) indisaster preparedness and management. Technical assistance will be provided including: (i) a technicaladvisor to assist in mobilizing and maintaining support from businesses and industries; and (ii) a technicaladvisor in local emergency planning and mitigation to assist in the development of plans and mitigationactivities.

b. Emergency communications system ($75,000)A dedicated system is needed to communicate among national level agencies, and emergencymanagement committees at the national and district levels, as this critical function cannot rely on otheragencies, especially during crises. The project will provide for the design and installation of an island-wide emergency communication system to link national disaster officials with each district by providingbase station radios, repeaters and mobile radios for district Disaster Committees to ensure effectivecommunication during and after disasters.

c. Disaster equipment and loss reduction materials ($175,000)Immediate availability of certain materials like reinforced plastic sheeting can limit or prevent secondarylosses. Because infrastructure damage often impedes the movement of relief and assistance materials fordays, the project will ensure the ready availability of limited stocks of emergency supplies and "lossreduction materials" like portable generators, water purification equipment/storage tanks, reinforcedplastic sheeting, chain saws, lanterns, community first aid supplies and equipment for specializedemergency responders at the national and community levels. These will be managed at the national levelby the ODP, but stored in several locations throughout the country.

Implementing agency: Office of Disaster Preparedness


St LuciaPROJECT DESCRIPTION

3. Strengthening the Early Warning System

This component will aim to establish an effective early warning system to alert appropriate governmentauthorities and the public of adverse weather conditions to provide for the protection of life and property.Strengthening the existing early warning capabilities of the National Meteorological Service (the MetService) will assist St. Lucia in mitigating the effects of extreme natural weather events such ashurricanes, tropical storms and floods. A well-defined hydrometeorological information infrastructureoffering an effective means of distributing forecasts and warnings to appropriate government authorities,the National Office of Disaster Preparedness, the media and the public will provide citizens withsufficient time to take measures to significantly reduce the loss of life and property damages.

This sub-component would: (i) strengthen the capacity of the National Meteorological Service; (ii)develop a Ham Weather Radio Observation Network; (iii) develop a local Flood Alert System; and (iv)provide technical assistance and training in meteorology and hydrology.

a. Support for the National Meteorological Service ($70,000)St. Lucia's national Meteorological Service (Met Service) no longer has real-time access to radarinformation from Barbados since the radar does not function most of the time. Therefore, access tohigh-resolution satellite imagery in real-time becomes critical for detecting storm systems that mightaffect the country. Support for the Met Service will include:- An enhanced satellite receiving station with a high resolution imaging system (including installation

costs) to acquire and process meteorological data from the National Oceanic and AtmosphericAdministration's geostationary weather satellite covering the Caribbean Region to supply informationon early storm warnings, hurricane tracking, and severe storms;

- Upgrade Star IV computer terminal which is a critical component of the World Area Forecast Systemthat provides special digital data files for world-wide aviation forecasts;

- Three PC Pentium computers (including a laptop for the Office of Disaster Preparedness) with high-speed modems and Internet connectivity, as well as two printers, to create the basis for the acquisitionand dissemination of critical meteorological data and products from regional and internationalcenters;

* Three additional phone lines for the Met Service base at Hewanorra International Airport, onededicated for Internet access, the second for a voice mail system providing up-to-date forecasts andwarnings (which would free up the Met Service to monitor and track adverse weather conditionsduring impending storms); and the third line to be used as back-up;

* Training associated with new equipment

b. Development of a Ham Weather Radio Observation Network ($40,000)Development of a network of 10-15 ham weather radio operators dispersed throughout the country willprovide critical auxiliary weather observations such as wind, gusts, barometric pressure and rainfall to theMet Service and the U.S. National Hurricane Center in Miami. Providing ham radio operators, lawenforcement or fire department officials with reliable instruments capable of measuring weatherconditions automatically also increases the chance of obtaining critical information before, during andafter a hurricane since these are likely to represent the only operable communication pathway to and froma hurricane devastated area. This subcomponent will include: (i) weather stations with solar panelsintegrated with a modem and an Automatic Weather Packet Reporting System; (ii) transmitters,


generators, and spare parts for maintenance; and (iii) training associated with development of the HamWeather Radio Observation Network.

c. Developnent of a Local Flood Warning System ($1 75,000)The Government needs a flood warning system that measures and transmits instantaneous data onprecipitation and water levels of streams prone to flooding. A system called ALERT (Automated LocalEvaluation in Real-Time) is one of the local flood warning systems that seems most appropriate in thiscountry context. This subcomponent will ensure the establishment of an ALERT system that wouldencompass four basic components: (i) sensors for detecting weather events (rain gauge, river gauge, etc.);(ii) a transmitter that encodes and transmits the data from the gage; (iii) a repeater that receives andtransmits the signal to the receiving base station; and (iv) a base station, which receives the informationand decodes and stores the data in a PC computer with appropriate software. The project will alsofinance a specialized consultant to advise on an effective flood warning system, provide data collectionsystenifstandards, carry out site selection and installation of necessary equipment and provide appropriatetraining related to the operation and maintenance of the local flood alert warning system.

Currently, the Ministry of Agriculture already has 33 rain gauges deployed throughout the island whichare used on a weekly basis for monitoring purposes. The Met Service does not have access to the datafrom these rain gages, and in addition, weekly monitoring is not sufficient for effective flood warning. Inorder to avoid duplication of equipment and resources, the project would aim to enhance collaborationbetween the Ministry of Agriculture and the Met Service to share the data for their respective purposes.The project would also finance enhancements to the current rain gages if necessary to transmit the data tothe Met Service in real time.

c. Technical Assistance and Training ($15,000)With the recent advances in science and technology, effective and efficient up-to-date training of staff inoperational meteorology and hydrology is critical to maximize the information from new technology andto minimize error of misinterpretation of observational data. This subcomponent will finance: (i) trainingcourses, symposiums and workshops associated with: agrometeorology, climatology, media training,equipment maintenance (repair and preventative), satellite interpretation, hydrology and specializedmeteorology for personnel involved with hydrologic and meteorology operations; and (ii) technicalassistance related to meteorological equipment operations and maintenance.

Implementing agency: National Meteorological Service




BackgroundThe ultimate mission of a National Disaster Plan is to save lives and protect property. The cornerstone ofsuch a plan is the education, empowerment and active involvement of the local community in the plan'smitigation, preparedness, response and recovery activities. It is the citizens of local communities whowill personally experience, or have already experienced, the devastating effects of disasters. A public/private partnership, with local citizen participation in planning, decision-making and the implementationof the National Disaster Plan, is critical to quick and effective recovery from the effects of a disaster.This partnership is also necessary for awareness and understanding of community's responsibilitiesbefore, during and after a disaster.

Disaster Committees exist in all 10 governmental districts. In addition there are two additional DisasterCommittees in two large rural areas. The government districts are scheduled to become legal local self-governing jurisdictions in the year 2000. Currently, the chairperson of the District Council serves as thechairperson of the Disaster Committee and the District Clerk serves as the Disaster Committee Clerk. Incommunities below the district level, the local community development committee serves as the DisasterCommittee. Organization of the Committees is strong on paper with defined organizationalresponsibilities. However, the Committees are at different levels of operational effectiveness andresource capacity. There is a need for resources to strengthen and sustain this institutional disastermanagement capacity at the local level.

The Caribbean Disaster Emergency Response Agency (CDERA), the U.S. Office of Foreign DisasterAssistance (OFDA), the U.S. Federal Emergency Management Agency (FEMA), and the InternationalFederation of Red Cross and Red Crescent Societies, are some of the agencies that could provideessential training for key district Disaster Committee members. Under the project, Disaster Committeeswill be provided the following types of training: (i) organization and functions of a District/CommunityDisaster Committee; (ii) training in "Surviving the Next Disaster" (special training available through theRed Cross); and (iii) other skills such as emergency search and rescue, donations management, disaster-related needs of seniors and persons with disabilities, etc.

Disaster Committees will be provided with essential radios and other search and rescue equipment,potable water delivery systems, etc. (financed under section 2b. Strengthening the Office of DisasterPreparedness). Physical facilities are necessary for storage of disaster supplies and emergency responseequipment at the community level. In addition, committees need a dedicated space to meet and toestablish an operations center during an emergency. Under the project, the ODP and the Ministry ofCommunity Development will ensure that the equipment provided to communities is stored in a safeplace and that committees have a space to meet and organize.




5. Institution Building

a. Vulnerability Reduction of Public Buildings ($160,000)The main objective of this component would be to reduce potential fiscal liabilities incurred by theGovernment in case of catastrophic losses by efficiently insuring its buildings/facilities and reducing theirvulnerability. Currently, very few of the Government's buildings are insured. Given the country'spropensity to experience disasters, an improved insurance scheme for public buildings is considered thetop priority.

This component will consist of technical assistance to: (i) assess the value of the Government'sbuilding/facilities; (ii) evaluate the risk of potential damages to buildings/facilities based on their locationand quality of construction and maintenance; (iii) determine optimal vulnerability reduction measuresthrough mitigation/retrofitting investments and/or an insurance strategy to minimize the cost of insurancefor a given level of risk; (iv) consider alternative financial instruments (e.g. catastrophic bonds andweather hedges); (v) review existing regulatory requirements covering building codes, siting and land useplanning, and recommend improvements to current practices; and (vi) make recommendations withregard to the development of an insurance sector regulatory framework, including prudential solvencyand reserve provisions for disasters. The project would thus strengthen the capacity of the Government toreduce or spread the risk of catastrophic loss.

The component would cost a total of US$160,000 with the following breakdown: (i) consultants forstudies (US$100,000); (ii) study tour (US$30,000); and (iii) in-country workshop with representatives ofmajor insurance/re-insurance and catastrophic bonds/weather hedges companies (US$30,000).

b. Hazard Analysis/Vulnerability Mapping (US$60,000)There is a need to more precisely identify hazards and vulnerability to protect current and futuregovernment and private sector investments in Dominica. Once recognized, vulnerable areas can beidentified for mitigation activities and held to an appropriate standard for development planning.Existing information in government ministries and in private companies need to be consolidated andadditional research done to identify all hazards to be analyzed. The project will support the developmentof a comprehensive hazard and vulnerability map for Dominica; the preparation of an economic andpopulation vulnerability analysis; and training for government, private sector and communities to identifystrategies to use the information for development planning across sectors and for disaster preparednessand mitigation.

c. Building CodesThe project will aim to strengthen the resilience of buildings, public and private, to disasters such ashurricanes in the country through adoption of a national building code and its effective enforcementthrough proper building inspection. The Organization of American States (OAS), as executing agency ofthe Caribbean Disaster Mitigation Project (CDMP) and with funding from USAID, joined the UnitedNations Centre for Human Settlements (UNCHS) in a technical assistance program to introduce a modelbuilding code in the OECS countries. The Government of St. Lucia is currently carrying out a nationalconsultation of the model code. Under the project, the Government, with technical assistance from OAS,will work out a firm timetable for the code's adaptation, enactment and enforcement. In addition, anassessment of the present situation regarding the enforcement of building inspection will be carried out

54 ANNEX 3ASt Lucia

and recommendations will be made as to what steps the Government will need to take to improveenforcement.


Annex 3B

st Lucia St. LudaESTIMATED PROJECT COSTS

_US$ mnions nCos Physical Price TOTALLocal Foreign Total Conting. Conting. COSTS

1 PhyWsal Prevenon & lItigation Works 0.93 4.46 5.39 0.45 0.11 5.94CMl works 0.82 3.28 4.10 0.41 0.08 4.59a. Hewanonr alpoit3 food proction 0.06 0.24 0.30 0.03 0.01 0.34b. Bddges and ,ert.ung 0.11 0.44 0.55 0.06 0.01 0.62c. Culde Sac Vagey flood prventon 0.43 1.72 2.15 0.22 0.04 2.41d. Supplementary servorforVWctodsaHosptal 0.11 0.44 0.55 0.06 0.01 0.62e. Disaster management for schoos &lb,es 0.11 0.44 0.55 0.06 0.01 0.62

Procuremnent of goods 0.00 0.57 0.57 0.00 0.01 0.58a. Bailey-te bddges 0.30 0.30 0.01 0.31b. Gabions 0.10 0.10 0.00 o.10c. Emergency equipment for scoashaeltrs 0.17 0.17 0.00 0.17

Technical assistance and studies 0.11 0.61 0.72 0.04 0.01 0.77a. Technkal assistance to Ministiy of Educatiin 0.00 0.02 0.02 .00 000 .02b. Engineerng studfes 0.05 0.30 0.35 0.02 0.01 0.37c. Environmental assessments 0.03 0.17 0.20 0.01 0.00 0.21d Supervision of works 0.02 0.13 0.15 0.01 0.00 0.16

2 Strengthening Emergency Prparednes & Response 0.04 0.78 0.83 0.01 0.02 0.86a. Strengthening the Office of Disaster Preredness 0.03 0.40 0.43 0.01 0.011 0.44Island-wide emergency communications system n 0.08 0.08 0.00 0.08Spedaledisaster equimet 0.18 0.18 _ 0.00 0.18

- TA and training for ODP 0.03 0.15 0.18 0.01 0.00 0.19

lb. Developing Effectve Early Waming Systems 0.00 0.30 0.30 0Q00 Q.01 0.31-Meteorological equipment 0.07 0.07 0.00 0.07Ham Weather Radh iobsanation Network 0.04 0.04 0.00 0.04Local flood alert waming system _ 0.18 0.18 0.00 018STA and training 0.00 0.01 0.02 0.001 0.00 0.02

c. Community Based Disaster Management 0.02 0.09 0.10 0.01 0.00 0.11Training for Dist Disaster Comt s 0.02 0.09 0.10 0.01 0.00 0.11

i~ ~ ~ ~ ~ ~ _ _ __I _ _

3 Instittonal strengthening 0.03 0.19 0.22 0.011 0.00 0.24Hazard analysis/vulnerability mapping 0.01 0.05 0.06 0.00; 0.00 0.06Vulnerability reduction of public builings 0.02 0.14 0.16 0.01 0.00, 0.17[Building code __|_i

4 ProJect Managemnt 0.27 0.31 0.58 0.03 0.014 0.61TA (financial manager & contact specialist) 0.08 0.12 0.20 0.01 0.00 0.21equipment 0.01 0.04 0.05 0.00 0.05workishops 0.03 0.03 0.00 0.00 0.03technical audits 0.10 0.10 0.20 0.01 0.00 0.21financial audits 0.05 0.05 0.10 0.01 0.00 0.11

TOTAL 1.27 5.74 7.01 0.C0 0.14 7.65N.M. Figures may not add up due to rwndg _

_CW Civl Wiorks; CON a consrtancle GOODS g oods & equ4pnent MISC. a idsoaineousI Physkal conijrngencis u 10% for cwwod5 rcfrongnc; 0 roods ieon de - 2%

56 ANNEX3CSt Lucia

St. Lucia


Project coordination and management* A Project Coordination Unit (PCU) will be set up in the Ministry of Finance and Planning (MFP). It

will consist of a Project Coordinator, appointed by the Ministry, who will coordinate and monitorimplementation progress according to agreed upon performance indicators and report to the WorldBank. The project will finance a project Financial Manager for the duration of the project who willbe familiar with Bank procedures and guidelines for administration and management of funds. Theproject will also finance a contract management specialist on an as-needed basis to assist the variousimplementing agencies in awarding and supervising contracts.

* The Government has set up as of November 1, 1998, a National Hazard Mitigation Council to serveas a steering committee to coordinate policy issues, recommend the selection of priority investments,and help ensure the compliance of government commitments. This council is chaired by thePermanent Secretary of the Ministry of Finance and Planning (or his/her representative) and consistsof representatives of the relevant line ministries, as well as the Chamber of Commerce.

Project implementation* Each project component will be implemented by the respective line ministry responsible for that

component. The Office of Disaster Preparedness (ODP) will be the implementing agency for theinstitutional strengthening components.

* The project will strengthen the implementation capacity of ODP by financing a technical advisorfrom the private sector to assist the ODP in mobilizing and maintaining support from businesses andindustries, and a technical advisor in local emergency planning and mitigation to develop plans andmitigation activities.

* The implementing agencies will provide progress reports to the PCU on a monthly basis.* Procurement, contracting, and payments to contractors will be undertaken by the respective

implementing agencies using World Bank guidelines, with the assistance of the contract managementspecialist in the PCU where necessary.

Project supervision, reporting and audit requirements* A Project Implementation Manual will delineate financial management and control procedures,

including TORs prepared by the PCU for internal and external audits acceptable to the Bank.* Each implementing agency will forecast the amounts to be withdrawn from the Special Account on a


* The PCU will, on a periodic basis, supervise the implementation of each component, including thephysical investment components, and undertake periodic field visits.

* The PCU will make quarterly reports to the World Bank, including a statement of sources and uses offunds, ensuring that all project guidelines are being followed.

* Financial audits for all accounts and components will be carried out annually. Technical audits willbe carried o,ut for large civil works that do not include technical audits as part of the supervisionprocess. Audit reports will be submitted to the Bank no later than six months after the end of eachfiscal year.

57 ANNEX 3DSt. Lucia

St. LuciaPROJECT PROGRESS INDICATORS

[conmponent e Second Year Third Year ______-______

Hewanorra Airport Flood 100% completed 100% completedProtection WorksEngineering Study 100% completed 100% completed

Bridges and River Training 100% completed 100% completedCul de Sac Valley 50% completed 50% completed _ 100% completedReservoir for Victoria Hospital 50% completed 50% completed 100% completedSchools and Libraries 25% completed 75% completed 100% completedOffice of Disaster Preparedness

Emergency communications 100% procured 100% procuredequipment

Disaster equipment and loss 100% procured 100% procuredreduction materials

Early Warning SystemEquipment 100% procured 100% procuredTraining 33% completed 33% completed 33% completed 100% completed

Community Based Disaster ManagementDisaster Management Committees 25% equipped and 65% equipped and 80% equipped and 80% equipped and

functional functional functional functionalCommunity Training 25% committees 65% committees 80% committees 80% committees

trained trained trained trainedVulnerability Reduction of Study completed Study completed

Public Buildings Workshop completed Workshop completed

Hazard Analysis Study completed Study completedBuilding Codes Building codes Building codes

adopted and enforced adopted and enforced

58 ANTNEX 3ESt. Lucia

St. LuciaPROCUREMENT ARRANGEMENTS

Civil Works:The civil works under the project consist of: (i) flood protection works and reinforced embankment; (ii)repair and construction of bridges and river training; (iii) flood prevention works and raising of roads;(iv) construction of a supplementary water reservoir for the main hospital; and (v) protective works forschool and facilities, including retrofitting of schools used as shelters and the installation of sanitaryfacilities. For these works, ICB procedures will be used for larger contracts. Given the expected size ofthe works in the island, there is no need for a prequalification of contractors under ICB nor anyinternational advertisement beyond the announcement of the project in the General Procurement Notice.NCB procedures acceptable to the Bank will be used for contracts estimated to cost less than US$300,000up to an aggregate amount of US$3 10,000. Small works estimated to cost less than US$30,000 up to anaggregate amount of $310,000 will be procured using three quotations from registered contractors.

Goods and Equipment:The procurement of goods will be carried out through ICB except for the following items: LIBprocedures will be used for the procurement of Bailey-type components and its launching system and forgabion baskets (estimated aggregate cost of US$400,000) and for meteorological equipment (estimatedaggregate costs of US$410,000); international shopping procedures will be used for the procurement ofsmall rescue tools, office equipment, early warning systems, and other emergency tools in packagesestimated to cost less the US$50,000 individually up to an aggregate amount of US$610,000; and localshopping procedures will be used for procurement of sundry items in packages estimated to cost less than$20,000 up to an aggregate amount of US$ 100,000.

Consultants' Services:The hiring of consulting firms will be made using Quality and Cost-Based Selection (QCBS) or Selectionunder Fixed Budget (SFB), and the hiring of individuals will be made using selection based onqualifications.

Prior Review:All ICB will require prior review. For LIB procedures, the Borrower will submit a list of the biddersinvited to bid, the tender documents, the specifications and the official cost estimate prior to inviting forbids and then will seek the non-objection of the Bank to the proposed awards and draft contract. Twocopies of the signed contract should be sent to the Bank prior to making disbursements against thesecontracts. The first NCB procurement for civil works in each year as well as the first international andlocal shopping procedures in each year will require prior review. All consultants' services estimated tocost above $100,000 for firms and $25,000 for individuals will require prior review by the Bank.

59 ANNEX 3ESt. Lucia


Expenditure Procurement Method Totad CostCategory (including contingencies)

.__________ ICB NCB Other N.BF

1. Works 3.98 0.31 0.31 4.60(3.31) (0.31) (0.31) (3.93)

2. Goods 0.41 0.72 1.13(0.28) (0.6) (0.88)

3. Consulting 1.06 0.80 1.86Services (0.80) (0.34) (1.14)

4. Operating 0.06 0.06Expenditures (0.06) (0.06)

5. Commitment fee 0.03 0.03(0.03) (0.03)

Total 5.45 0.31 1.92 7.68_______________ (4.39) (0.31) (1.34) . (6.04)

Note: Figures in parenthesis are the amounts to be financed by the Bank loan/IDA creditN.B.F. = Not Bank-financed (includes elements procured under parallel cofinancing procedures, consultanciesunder trust funds, any reserved procurement, and any other miscellaneous items).


Consultant Total CostServices Selection Method (including

contingencies)QCBS QBS SFB LCS CQ Other N.B.F

A. Firms 1,000,000 460,000 1,460,000

B. Individuals 440,000 440,000

Total 1,000,000 460,000 440,000 1,900,000Note: Figures in parenthesis are the amounts to be financed by the Bank loan.QCBS = Quality- and Cost-Based Selection LCS = Least-Cost SelectionQBS = Quality-based Selection CQ = Selection Based on Consultants' QualificationsSFB = Selection under a Fixed Budget N.B.F. = Not Bank-financed.Other = Selection of individual consultants (per Section V of Consultants Guidelines), Commercial

Practices, etc.

60 ANNEX 3ESt. Lucia


.Conict Value Procurement Review Estimated TotalGa~~gwy (I%treshoId) Mehdvalue Sujct to

'__________'0,A 1 $ '* t housand S _____________ _______Prior Review1. Works <300,000 NCB First 300,000

<50,000 Quotations First 550,000>300,000 ICB All

2. Goods LIB All 400,000<50,000 International Shopping First 610,000<20,000 Local Shopping First 100,000

3. Services 25,000 Individuals All 530,000>100,000 QCBS All

Tota value of contracts subject to prior review:

Status of Bank Group Operations in St. Lucia

DifferenceB3etween expected

Original Amount in USS Millions and actualFiscal disbursements a/

Project 1D Year Borrower PurposelIRD IUA Cancellations Undisbursed Orig Fr. Rev d


Active ProiectsLC-PE-38698 1995 GOV'T OF ST. LUCIA BASIC EDUC REFORM 3.36 3.36 0.00 2.81 2.69 0.00

Total 3.36 3.36 0.00 2.81 2.69 0.00

Active Projects Closed Prolects TotalTotal Disbursed (IBRD and IDR): 3.72 13.27 16.99

of which has been repaid: 0.00 .73 .73Total now held by IBRD and IDA: 6.73 12.26 18.99Amount sold 0.00 0.00 0.00

Of which repaid 0.00 0.00 0.00Total Undisbursed 2.81 0.00 2.81

a. Intended disbursements to date minus actual disbursements to date as projected at appraisal. 0r'Note:

Disbursement data is updated at the end of the first week of the month. A

0

rt S

Generated by the Opcrtos Information System (0IS)

St. Lucia at a glance Likn Upw@-

POVE and SOCUL Ajuca middle-SL LUCa & Cuw hcom Development dbamand

197Ppulaon, midWaw (mAn) 0.16 494 571 Uh apaGNP per cat Aas mao USS) 3,620 3.880 4.520GNP (Ales neoL bigon) 0.58 1,917 2.564

Jea aua growt, 131M-

Populaon ) 1.0 1.7 1.5Labor fre IX) .. 2.3 1.9 GNP Gross

most ~~~~t a.st~~~~ o~~at~~a~~ 199147) ~~per piimaryMostreml sent _IbbkWtn wun aftbbb, W capita enrolment

POrWt (%0 oopJlalon beow ndonawlpo)Urbn populaton (% of ot poulaon) 37 74 73Lia exechincyat bith (ws) 70 70 70Want mortality (per 1,000Nve Mls) 18 32 30Child mn tton (X of d n uw b) .. .. .. Access to safe waterAcces lo safe water (X ofpopuan) .. 73 79

hlUmb (X ofpopuulon 15+) 10 13 15Grs primay enroilmnt ( of scool popubon) .. 111 107 & Lucia

me .. .. .. - UpperW-niddleincore groupFemale

KEY ECONMIC RATIOD and LONG-TM TRENOS

1976 19U6 196 191TEconomic ratlos

GDP ((18$ blio) .. 0.26 0.60 .Gos domesic Imest GDP .. 21.2 19.0Eaports of goods and serloeGDP .. 63.8 67.8 TradeGross domestc unG DP .. 14.5 17.1Grss noa singsGDP .. 21.3 12.8

C nt account bl GDP .. 0.1 4.1 .. Dorrestcs/Intee pa_mentsGDP .. 0.3 0.9 .. InvesbntTotl debGDP .. 12.1 23.8 SaingsTotal debt servcdoqxorts 0.6 1.1 3.0Presa valueof ddabGDP .. .. 18.3Presentvalue ofdetxpot .. .. 28.

Indebtedness197646 167-97 1196 197 1994-02

(averae annua rowth)GDP .. 4.5 3.2 S.. LS uciaGNP per capit .. 3.2 0.8 .. - Upper-middle4ncorne groupEort of goods nd services .. 2.2 3.8 .. _..

STRUCTURE of the ECONOMY

(of01 GOP) 1976 1986 1996 1997 Growth rates of output and Investment (%)

Agriculture .. 18.1 10.7 10dustby .. 17.2 19.7 ..Manufcturing .. 8.2 8.7 92 n N7..rw e4.7 8 9.6 . .10 *\

Priate consumption .. 8.3 68.5 .. 20 Genera govemment oonsumption .. 17.2 14.4 .. G01 0GDPImports of goods and services .. 70.5 69.7

197646 18797 1996 1997 Growth ret. of exports and Imports (%)(avefao annua t owth)Artu .. 1.8 5.8 1.Industry .. 5.2 2.3

Manufacturing .. 1.5 2.8 .. sSer .. .0 3.8

Prvt cnsumpion .. 2.1 4.9 0G lV e goWnt tum0on 3.5 -3.1 ..Gross domestl invnsbmMn .. 1.9 33 .Import of goods wd ser*- -0.2 3.9 .. E ports pGros nati product .. 4.3 2.0 ..

Note: 1997 d are preinasy estimtes.

*The dimonds show foure Indkaictor Iiecot In bod) compred whhf its income_roup erage. I dat are missng, l diamond wvNbe incomplet.

St. Lucia

PRICES and GOVERNMENT FINANCE1176 1986 1196 1117 In f (on

(% chane) Consumer prices 3.1 o

nmpliit GOP deflator 3.6 3.2 4.

Govemment finance 2(% of GDP. includes cufent grants)Current revenu 31.2 *2 93 g 95 9w 07Current budget bance 8.2 GDP dtnawor CCPiOvall surplus/deficit .1.9

TRADE

(UJS$ millions) 1976 1966 1996 1997 Export and Import levels (US$ millions)

Total exports (fobb) 118 oBananas 48Fruits and vegetables 1 3W_

Hanufaceures 26Total imporls (cin 348

Food . . 78 .Fuel and energy 26Capital goods so

Export priee index (1995= 100) SI 92 93 94 9 omport price index (1995=100) 99 a E2orts a nports

Terms of trade (1995-100)

BALANCE of PAYMENTS

(US$ millions) 1976 19S6 16 1117 Currnt acount balance to GOP ratio (%

Exports of goods and services 32 167 406 o 0mportsofgoodsandservices 50 185 417 . *7Resoure balance -19 -18 -12 s*

Net income 0 -5 -44Net current transfers 13 23 19 .10

Current account balance -5 0 -37 - s

Financing items (net) 8 11 37Changes in net reserves -3 -12 0 2.

Reserves including gold (USS miilions) .. . 31Conversion rate (DEC, ocasUUSS) 2.6 2.7 2.7 2.7

EXTERNAL DEBT and RESOURCE FLOWS

1976 1986 199S 1997(USS millions) Compostion of total debt, 1317 (USS millions)Total debt outstanding and disbursed 5 32 142 152

IBRD 0 0 4 4IDA 0 0 8 10 G:33 - -

Total debt service 0 2 12 13IBRD 0 0 0 0IDA 0 0 0 0

Compositon of net resource flowsOfficialgrants 3 3 29 16Official creditors 1 2 11 4Private creditors 0 3 0 0 E 34 : 71Foregn direct investment 3 15 39 45Porfolio equity 0 0 0 0

World Bank programCommitments 0 0 0 0Disbursements 0 0 3 2 A-SRO EB- BiitrFwPrincipal repayments 0 ° 0 0 ,_°)A c -DOt nGiitw F -PrvmNet fows 0 0 3 2 C. SW G - Sh____ r_

Interest pawments 0 0 0 0Net transfers 0 0 2 2

World Bank 9/29198


Country Annex

DOMINICA

ANNEX A Detailed Project DescriptionANNEX B Estimated Project CostsANNEX C Project ManagementANNEX D Project Progress IndicatorsANNEX E Procurement and Disbursement ArrangementsANNEX F Statement of Loans and CreditsANNEX G Country at a Glance

65 ANNEX4ADominica

DominicaPROJECT DESCRIPTION

1. Physical Prevention and Mitigation Measures

This component deals primarily with public infrastructure, and includes: (i) retrofitting key vulnerablebuildings used as shelters, and buildings critical to safety and general public well-being such as hospitals;and (ii) strengthening/rehabilitating key infrastructure (bridges/culverts; river bank protection; slopesprotection; sea defenses with regard to land slides, sea swells and floods. Environmental assessments/screening will be carried out for all civil works. The sub-projects will include:

a. Sea Defense works (Estimated Direct Cost)a) Soufriere to Scotts Head Road $1,400,000b) Hatten Garden Wave Tidal Protection $478,000

Indirect cost $230,000Design $205,000Bidding preparation $ 20,000Supervision of Works $ 82,000Total estimated cost US$2,415,000

b. River Control and Flood Damage Reductiona) Pichelin River Dredging $250,0001b)Colihaut River Control $195,000c) Engineering and Supervision $120,000

Total estimated cost US$565,000

The capacity of the Ministry of Communications, Works and Housing (MCWH) to engineer andsupervise bridge strengthening and river training works (including wing-walls and gabionage) will bestrengthened through the hiring of an individual expert in river control and by equipping the ministry withthe appropriate technology required, including a computer, flood and river simulation software, anddrafting and surveying equipment.

c. Road ProtectionElmshall Road Reinstatement $300,000Design $40,000Bidding Preparation $4,000Supervision $16,000Total estimated cost US$360,000

d Shelters (US$690,000)A regional hurricane community shelter will be constructed, equipped with a small kitchen and sanitaryfacilities. The shelter will be used in non-emergency situations throughout the year for disaster trainingof community Disaster Preparedness Committees. Six existing shelters will also be retrofitted tohurricane-resistant standards.

Retroactive financing; not subject to indirect costs

66 ANNEX 4ADominica


2. Strengthening the National Office of Disaster Preparedness

The project will strengthen the capacity of the national Office of Disaster Preparedness to prepare itselfand the population at large to respond quickly and effectively in emergencies to save lives and protectproperty. This will be done by enhancing human resource capacity through technical assistance to theODP; establishing an island-wide emergency communications systems; and providing quick access todisaster equipment and loss reduction materials, both at the central and community levels.

a. Capacity building in the ODP (US$175,000)The project will strengthen the human resource capacity in the national Office of Disaster Preparedness(ODP) in disaster preparedness and management. Technical assistance will be provided including: (i) atechnical advisor from the private sector to assist in mobilizing and maintaining support from businessesand industries; and (ii) a technical advisor in local emergency planning and mitigation to assist in thedevelopment of plans and mitigation activities.

b. Specialized disaster equipment and loss reduction materials ($197,000)Immediate availability of certain materials like reinforced plastic sheeting can limit or prevent secondarylosses. Because infrastructure damage often impedes the movement of relief and assistance materials fordays, the project will ensure the ready availability of limited stocks of emergency supplies and "lossreduction materials" like portable generators, water purification equipment/storage tanks, reinforcedplastic sheeting, and equipment for specialized emergency responders at the national and communitylevels. Some of this equipment will be stored at the central level, and some will be located with localDisaster Preparedness Committees.

c. Island-wide emergency communications system ($45,000)A dedicated system is needed to communicate among national level agencies, and emergencymanagement committees at the national and district levels, as this critical function cannot rely on otheragencies, especially during crises. Proposed communications equipment will include: 7 VHF BaseStations one for each district; mobile radios for the local Disaster Preparedness Committees; and othercommunications equipment to ensure effective communication during disasters.

67 ANNEX 4ADominica


3. Developing an Effective Early Warning System

This component will aim to establish an effective early warning system to alert appropriate governmentauthorities and the public of adverse weather conditions to provide for the protection of life and property.Strengthening the existing early warning capabilities of the National Meteorological Service (NMS) willassist Dominica in mitigating the effects of extreme natural weather events such as hurricanes, tropicalstorms and floods. A well-defined hydrometeorological information infrastructure offering an effectivemeans of distributing forecasts and warnings to appropriate government authorities, the National Officeof Disaster Preparedness, the media and the public will provide citizens with sufficient time to takemeasures to significantly reduce the loss of life and property damages.

Barbados provides weather forecasts and warnings to the Dominica Meteorological Station at MelvilleHall Airport. Dominica is responsible for collecting hourly weather observations at both the MelvilleHall Airport and the Canefield Airport and providing those observations to the Barbados MeteorologicalService. The Dominica Meteorological Station (Melville Hall Airport) is also responsible fordisseminating weather forecasts and warnings to alert appropriate government authorities, the media andthe public of adverse weather conditions to provide for the protection of life and property. Although theprimary purpose for these observations at the airports is to provide critical surface observations foreffective airport operations, this data is also very important in developing weather forecasts and warnings.

This sub-component will provide: (i) support to the National Meteorological Service; (ii) development ofa Ham Weather Radio Observation Network; (iii) development of a local Flood Alert System; and (iv)technical assistance and training in meteorology and hydrology.

a. Supportfor the National Meteorological Service (US$55,000)Several pieces of existing meteorological sensors and equipment are in need of upgrading at the MelvilleHall Airport and the Canefield Airport to improve the weather observations for both of Dominica'sWeather Observation Stations. Support for the NMS will include:* Replacement of existing antiquated meteorological equipment (including installation costs) including

two large Stevenson screens, two tilting syphon rain recorders, one anemographer recorder, oneanemometer, two wind vanes, and two wind dials. Specialized consultants will be hired to provideexpert advice on procurement, installation and maintenance of equipment.

* Two Pentium (200 MHz minimum) computers with appropriate software, 17-inch monitors, 56Kspeed modems, with Internet connectivity at the Melville Hall Airport Meteorological Station, and 2laser quality printers. Internet access creates the basis for the acquisition and dissemination of criticalmeteorological data and products from regional and international centers.

* Two additional phone lines for the NMS at the Melville Hall Airport; one dedicated for Internetaccess, and the second a dedicated phone line between the Dominica Meteorological Station(Melville Hall Airport) and the Barbados Meteorological Service. This will ensure data is receivedand disseminated on a timely and continual fashion, since Dominica receives their weather forecastsand warnings through the Barbados Meteorological Office. Computers between the twoMeteorological Observation Stations and the National Disaster Preparedness Office should benetworked to continue to improve the communication between these offices.

* Training associated with new equipment.

68 ANNEX 4ADominica

b Development of a Ham Weather Radio Observation Network (US$40,000)Development of a network of 5-10 ham weather radio operators dispersed throughout the country willprovide critical auxiliary weather observations such as wind, gusts, barometric pressure and rainfall to theNMS and the U.S. National Hurricane Center in Miami. Providing ham-radio operators, law enforcementand fire department officials with reliable instruments capable of measuring weather conditionsautomatically also increases the chances of obtaining critical information before, during and after ahurricane since these are likely to represent the only operable communication pathway to and from ahurricane devastated area. Setting up such an observation network will involve (i) installation of weatherstationsmwith solar panels integrated with a modem, augmented by Automatic Weather Packet ReportingSystems; (ii) transmitters, generators, and spare parts for maintenance; and (iii) training associated withdevelopment of the Ham Weather Radio Observation Network.

c. Development of a Local Flood Warning System (US$230,000)The Govemment needs a flood waming system that measures and transmits instantaneous data onprecipitation and water levels of streams prone to flooding. A system called ALERT (Automated LocalEvaluation in Real-Time) is one of the local flood warning systems that seems most appropriate in thiscountry context. Through the project, an ALERT system will be established encompassing four basiccomponents: (i) sensors for detecting weather events (rainfall gage, river gage, etc.); (ii) a transmitter thatencodes and transmits the data from the gage; (iii) a repeater that receives and transmits the signal to thereceiving base station; and (iv) a base station, which receives the information and decodes and stores thedata in a PC computer with appropriate software. A specialized consultant will be hired to advise on aneffective flood warning system, provide data collection system standards, evaluate site selection andprovide appropriate training related to the operation and maintenance ofthe local flood alert warningsystem.

d TechnicalAssistance and Training (US$25,000)With the recent advances in science and technology, effective and efficient up-to-date training of staff inoperational meteorology and hydrology is critical to maximize the information from new technology andto minimize error of misinterpretation of observational data. This subcomponent will provide: (i) trainingcourses, symposiums and workshops associated with: computer technology, basic meteorology, andequipment maintenance (repair and preventative) for personnel involved with hydrologic andmeteorology operations; and (ii) technical assistance related to meteorological equipment operations andmaintenance.

Implementing agency: National Meteorological Service

69 ANNEX 4ADominica



BackgroundThe ultimate mission of a National Disaster Plan is to save lives and protect property. The cornerstone ofsuch a plan is the education, empowerment and active involvement of the local community in the plan'smitigation, preparedness, response and recovery activities. It is the citizens of local communities whowill personally experience, or have already experienced, the devastating effects of disasters. A public/private partnership, with local citizen participation in planning, decision-making and the implementationof the National Disaster Plan, is critical to quick and effective recovery from the effects of a disaster.This partnership is also necessary for awareness and understanding of community's responsibilitiesbefore, during and after a disaster.

Disaster Districts of DominicaWithin the Commonwealth of Dominica, there are seven Disaster Districts covering 86 localcommunities, all of which have Local Disaster Management Committees. Through the Department ofLocal Government and Community Development, there is strong organizational linkage of the NationalDisaster Plan to the local communities.

Indicative of the strength of the effectiveness of the department and its dynamic leader is the impressive"Report on the Passage of Hurricane Georges, September 20th 1998" produced less than two weeks afterGeorges just missed Dominica. The report details the results of the seven district assessments andevaluation sessions covering the preparedness and response of the local communities to the projected hitby a Category 4 hurricane of 150 miles per hour. This self-assessment report highlights the need forcontinued training in disaster management, continued public education, shelter management andmanagement of special needs populations such as the physically challenged and elderly. There is a clearneed for resources to help meet these training needs required to sustain the institutional disastermanagement capacity of the Local Disaster Management Committees.

This component aims to: (i) train district and local Community Disaster Committee Members to bettermobilize and educate communities in disaster preparedness, mitigation, response, and recovery includinga special emphasis on shelter management and management of persons with special needs such as thephysically challenged, elderly, and other vulnerable persons; (ii) provide access to emergency disasterequipment and loss reduction materials at the local level (financed under 2b, Strengthening the NationalOffice of Disaster Preparedness); and (iii) make available financial resources for small scale communityinitiated activities in preparedness and mitigation

a. Training in Community Disaster Preparedness (US$50, OO)The Caribbean Disaster Emergency Response Agency (CDERA), the U.S. Office of Foreign DisasterAssistance (OFDA), the U.S. Federal Emergency Management Agency (FEMA), and the InternationalFederation of Red Cross and Red Crescent Societies, are some of the agencies that could provideessential training for key District Disaster Committee members. Under the project, Disaster PreparednessCommittees will be provided the following types of training: (i) organization and functions of aDistrict/Community Disaster Committee; (ii) training in "Surviving the Next Disaster" (special trainingavailable through the Red Cross); and (iii) other skills such as emergency search and rescue, donationsmanagement, disaster-related needs of seniors and persons with disabilities, etc.

70 ANNEX 4ADominica

b. Vulnerability Reduction FEnd (USS3 75,000)A Pilot Vulnerability Reduction Fund will initiated in Dominica. The objective of the Fund will be todemonstrate in Dominica that targeted and continuous financial support for disaster loss reductionprojects at the community level can be encouraged, effectively implemented, and managed well. Over aperiod of two years commencing January 1999, this Fund will promote local involvement in self-helpdisaster mitigation activities by local disaster preparedness committees in twenty one of the mostvulnerable communities in Dominica. A pilot of three projects from each of the seven local governmentdistricts will be targeted. District teams in consultation with local councils and community disasterpreparedness committees will be required to make submissions to a project selection committee to beestablished with members from the Local Government and Community Development Department,Disaster Preparedness Office, the Ministry of Finance, Industry and Planning, and the ProjectManagement Unit. Bottom-up proposals from the communities will be developed around the followingsub project categories designed to reduce the vulnerability of each community to potential disasters:

* Hazard mapping and assessment of mitigation measures required to reduce the loss of life andproperty;

* Individual, community, and public disaster mitigation education; and

* Improved drainage and culvert projects.

The total amount available under the Vulnerability Reduction Fund will be US$375,000. A maximum ofUS$20,000 will be provided per grant for the local activities.

Implementing agency: The Local Government and Community Development Department of the Ministryof Community Development and Women's Affairs

71 ANNEX 4ADominica


5. Institutional Strengthening

aL HazardAnalysis/Vulnerability Mapping (US$60,000)There is a need to more precisely identify hazards and vulnerability to protect current and futuregovernment and private sector investments in Dominica. Once recognized, vulnerable areas can beidentified for mitigation activities and held to an appropriate standard for development planning.Existing information in government ministries and in private companies need to be consolidated andadditional research done to identify all hazards to be analyzed. The project will support the developmentof a comprehensive hazard and vulnerability map for Dominica; the preparation of an economic andpopulation vulnerability analysis; and training for government, private sector and communities to identifystrategies to use the information for development planning across sectors and for disaster preparednessand mitigation.

b. Vulnerability Reduction of Public Buildings(US$100,000)The main objective of this component will be to reduce potential fiscal liabilities incurred by theGovernment in case of catastrophic losses by efficiently insuring its buildings/facilities and reducing theirvulnerability. This component will consist of technical assistance to: (i) assess the value of theGovernment's building/facilities; (ii) evaluate the risk of potential damages to buildings/facilities basedon their location and quality of construction and maintenance; (iii) determine optimal vulnerabilityreduction measures through mitigation/retrofitting investments and/or an insurance strategy to minimizethe cost of insurance for a given level of risk; (iv) consider alternative financial instruments (e.g.catastrophic bonds and weather hedges); (v) review existing regulatory requirements covering buildingcodes, siting and land use planning, and recommend improvements to current practices; and (iv) makerecommendations with regard to the development of an insurance sector regulatory framework, includingprudential solvency and reserve provisions for disasters. The project will thus strengthen the capacity ofthe Government to reduce or spread the risk of catastrophic loss.

c. Building CodesThe project will aim to strengthen the resilience of buildings, public and private, to disasters such ashurricanes in the country through adoption of a national building code and its effective enforcementthrough proper building inspection. The Organization of American States (OAS), as executing agency ofthe Caribbean Disaster Mitigation Project (CDMP) and with funding from USAID, joined the UnitedNations Centre for Human Settlements (UNCHS) in a technical assistance program to introduce a modelbuilding code in the OECS countries. The Government of Dominica has already modified the modelbuilding code for Dominica, and final adoption of the code is pending a vote in parliament on thelegislation required to have the code promulgated as an official document. The Government, withtechnical assistance from OAS, will work out a firm timetable for the code's full adoption andenforcement. In addition, an assessment of the present situation regarding the enforcement of buildinginspection will be carried out and recommendations will be made as to what steps the Government willneed to take to improve enforcement.

Implementing agency: National Emergency Management Agency

ANNEX 41Dominica Doniinica

ESTIMATED PROJECT COSTS

U.(S$ millions ______ Base Costs__ Physical Price TOTALCategory Local Foreign Total Conting. Contlng. COSTS

1 Physical Prevontion & Mitigation Investments 0.76 2.92 3.69 0.36 -- 0.07. 4.12Sea defense works CW 0.22 1.94 2.15 022 004 2.41River control and flood damage reduction CW 0.04 0.36 0.40 0.04, 0.01 0.45

Tfrrietraining and flood control CON 0.01 -0.11 01 .1 .0 01Road protection ____CW -0.08 0.24 0.33 003_ 0.01 0.36Shelters ____ __ .41' 0.28 0.69J 0.0!T 0.01- 0.77Construction of regional community shelter CW - - 14~ 0.10 0.241 .2 0.00 _0.27

~.Retrofit 6 existing shles W 027 0.18 0.45 .5 00 0.50shelters c__ 45-

2. Strengthening Emergency Preparedness & Response - 0.28: 0.92 1.19 -- 0.01 -- 0.02! 1.22I.Strengthening National Office of Disaster Preparedness 0.02: 0.40 0.42 O0.01 0011 0.43

I 1sland-w~ide emergency communications systemGO S -- 0.05±0.05 0 0 OOW; o.05Specialized disaster equipment for national ODP IGOODS 00.204-0.00'- 0.20

- 1 TA (2 experts) and training -__ _ CON o.Of 01608_ 0.01. _ 0.00 0.19

Deeopn Effective Early Warning Systems 1 - 0.0,0 0.35 60.00 - 0.36Meteworolgial equipment ____GOODS -- j00 .60 0.0 .6

:Weather Radio Observation Network JGOODS I0.04 0.041 - 0.001 0.0Local flood aleft waming system J ODS__ 0.23 0.231 0 0.00 -02

TA and training - -- CN 0.00. 0.02 0.,03 0.0 0.00 0.03

c.Cmmunity Based Disaster Management 0__2_6 0.17 0.43Ž~~ Wi6b 0.43Trining4 for Disaster PreparenessComites CON I.3 0.02: 00 -0.00 - 0.00 0.05Vulnera bility Reduction Fund - - t -4- 0.36

3 InstitutionalStrngqtlheninig -. 002, 0.14. 0.1 0.01' 0.00, 0.17,.Hazard. analysisAvulnerability mapig O _ .o 0_00 0.00 0.0I00Vulnerability reduction of public buildings jCO: N- j -0.01 .09 IDA0~ 0.01 0.00: 0.11Building cds - --

4, Pojet Mnagmen 0.22. 0.20; 0.43 0.02 0.01. 0.45

TA (financial manager) C --. ___ OOD 00,1 0.0 0.05 0.0 - 0.0-0 0.05:equipment GO__- ONS 001 00 --- 5 O'- ---- i--

workshops CN 0.0 0.0-3 0.00 0.00. 0.03technical audii--- CON - O78 0.08 0.15 0.01' 0.OO 0.16

financial audits ~~ CON- 0.01 0.09 0.10 0.01 0.00 0.11

~TTL -1.28' 4.19 5.46 -0.40. -. 0.10 5.97

JN.B.Fij~ m~ay i~i iip 7to-roi 1 -g---

CW=- Ci fft con CJ =~suflancies; GOODS =goods & eiquipment, MIC=miscellaneousPhssca `ontingencres 10% for civi works; 5% for cons~ultancies; 0 for goods, Price contingenci~es =2%

73 ANNEX 4CDominica

Doiminica


Project coordination and management* A Project Coordination Unit (PCU) will be set up in the Ministry of Finance, Industry and

Planning. It will consist of a Project Coordinator, appointed by the Ministry, who willcoordinate and monitor implementation progress according to agreed upon performanceindicators and report to the World Bank. The project will finance a Financial Manager forthe duration of the project who will be familiar with Bank procedures and guidelines foradministration and management of funds. An engineer will be hired with contractmanagement experience to assist the PCU with project implementation.

* The Government will set up a Joint Disaster Management Task Force comprising membersfrom the National Development Corporation and the National Emergency PlanningOrganization to coordinate policy issues, evaluate priority investments, and help ensure thecompliance of government commitments.

Project implementation- Each project component will be implemented by the respective line ministry responsible for

that component. The national Office of Disaster Preparedness (ODP) will be theimplementing agency for the institutional strengthening components. The implementationarrangements for the Vulnerability Reduction Fund are described separately in thedescription of that component.

- The project will strengthen the implementation capacity of ODP by financing a technicaladvisor from the private sector to assist ODP in mobilizing and maintaining support frombusinesses and industries, and a technical advisor in local emergency planning and mitigationto develop plans and mitigation activities.

X The implementing agencies will provide progress reports to the PCU on a monthly basis.* Procurement, contracting, and payments to contractors will be undertaken by the respective

implementing agencies using World Bank guidelines.

Project supervision, reporting and audit requirements* A Project Implementation Manual will delineate financial management and control

procedures, including TORs prepared by the PCU for internal and external audits acceptableto the Bank.

* Each implementing agency will forecast the amounts to be withdrawn from the SpecialAccount on a quarterly basis. The Financial Manager in the PCU will authorize thewithdrawal of these funds from the Special Account and make payments directly to thecontractors/consultants.

* The PCU will, on a periodic basis, supervise the implementation of each component,including the physical investment components, and undertake periodic field visits.

* The PCU will make quarterly reports to the World Bank, including a statement of sourcesand uses of funds, ensuring that all project guidelines are being followed.

* Financial audits for all accounts and components will be carried out annually. Technicalaudits will be carried out for large civil works that do not include technical audits as part ofthe supervision process. The Vulnerability Fund will also be subject to technical audits.Audit reports will be submitted to the Bank no later than six months after the end of eachfiscal year.

74 ANNEX 4DDominica

Dominica

PROJECT PROGRESS INDICATORS

Compoment | First Year Second Year Third Year Total ; ^Sea Defense

Hatten Garden 100 m completed 200 m completed 100 m completed 400 m completedSoufriere-Scotts Head Road 500 m completed 500 m completed 1000 m completed 2000 m completed

River Control & Flood DamagePichelin River Dredging 500 m completed, 500 m completedColihaut River Control 100 m completed 200 m completed 100 m completed 400 m completed

Road ProtectionElmshall Road 100 m completed - 100 m Completed

Shelters I shelter retrofitted 5 shelters retrofitted 6 shelters retrofittedHazard Analysis and Mapping I study completed _ Study completedVulnerability Reduction of PublicBuildings

Study I study completed - I study completedWorkshop I workshop completed - I workshop completed

Emergency Communications Syst 25% installed 100% installed - Systems fully functionalEarly Warning Systems 25% installed 100% installed - Systems fully functionalDisaster Mgmt. Committees 25% equipped & 65% equipped & 80% equipped & functional 80%equipped & functional

functional functionalCommunity Training 25% committees trained 65% committees 80% committees trained 80% committees trained

trained

Vulnerability Fund 7 sub-projects 7 sub-projects 7 sub-projects 21 projects financed

75 ANNEX 4EDominica

DominicaPROCUREMENT ARRANGEMENTS

Civil WorksThe civil works under the project consist of sea wall defenses, river control and flood damage reduction,road protection, construction of a community shelter and retrofitting of six other shelters. For theseworks, ICB procedures will be used for larger contracts. Given the expected size of the works on theisland, there is no need for a prequalification of contractors under ICB nor any internationaladvertisement beyond the announcement of the project in the General Procurement Notice. NCBprocedures acceptable to the Bank will be used for contracts estimated to cost less than US$300,000 up toan aggregate amount of US$1,200,000. Small works estimated to cost less than US$20,000 up to anaggregate amount of $375,000 under the Community Based Disaster Management component will becarried out by the beneficiary community using procedures acceptable to the Bank.

Goods and EquipmentThe procurement of goods will be carried out through ICB except for the procurement of small rescuetools, office equipment, other emergency tools in packages estimated to cost less than US$50,000individually up to an aggregate amount of US$210,000, which will be procured through internationalshopping. Also, local shopping procedures will be used for procurement of sundry items in packagesestimated to cost less than US$20,000 up to an aggregate amount of US$50,000.

Consultants' ServicesThe hiring of consultants, including for financial and technical audits, will be made using QBCS, andhiring of individuals will be made on Selection Based on Qualifications. A financial specialist will beappointed to the Ministry of Finance, Development and Planning for the financial management of theproject

Prior ReviewAll ICB will require prior review. The first NCB procurement for civil works in each year as well as thefirst international and local shopping procedures in each year will require prior review. All consultants'services above an estimated cost of US$50,000 for firms and US$25,000 for individuals will require priorreview by the Bank.

Retroactive financingRiver training works at the Pichelin River, carried out by the Department of Public Works usingprocedures acceptable to the Bank, will be financed on a retroactive basis in an amount not to exceedUS$250,000.

76 ANNEX 4EDominica


________ e'e'Other (incding)1. Works 2.85 1.29 4.14

(2.25) (1.12) (3.37)

2. Goods 0.37 0.28 0.65(0.37) (0.23) (0.60)

3. Services 0.75 0.75._____ ______ ______ _______(0.60) (0.60)

4. Miscellaneous 0.38 0.38(Vulnerability (0.38) (0.38)Reduction Fund)

5. Operating Expenses 0.028 0.028(0.028) (0.028)

6. Front end fee 0.025 0.025____ ____ ____ ____ ____ __(0.025) (0.025)

Total 0 3.22 1.29 1.46 5.97(2.62) (1.12) (1.26) (5.00)

Note: Figures in parenthesis are the amounts to be financed by the Bank loan/IDA credit


Consultant TotalC ostServices Selection Method (including

condngencies)QCBS QBS SFB LCS CQ Other

A. Firms 0.40 0.05 0.45(0.40) (0.05) (0.45)

B. Individuals 0.3 0.3

(0.3) (0.3)Total 0.39 0.05 0.3 0.75

(0.39) (0.05) (0.3) (0.75)Note: Figures in parenthesis are the amounts to be financed by the Bank loan.QCBS = Quality- and Cost-Based SelectionCQ = Selection Based on Consultants' QualificationsOther = Selection of individual consultants

77 ANNEX 4EDominica


Expenditure Contract Value Procurement Review Estimated TotalCategory (Threshold) Method Value Subject to

US$ thousands Prior Review______________ ______________ _______________ _ (U S$ m illion)

1. Works >200,000 ICB All 2.9< 250,000 NCB First 0.25

2. Goods >500,000 ICB All 0.37< 50,000 International Shopping First 0.05< 20,000 Local Shopping First 0.02

3. Services QCBS All 0.39Individuals All 0.30

4. Miscellaneous Vulnerability Fund Ex-post --

Total value of contracts subject to prior review: 4.28

Status of Bank Group Operations in Dominica

DifferenceBetween expected

Original Amount in USS Millions and actualFiscal . disbuLsemenits a/

Project ID Year Borrower PurposeIBRD IDA Cancellations Undisbursed Orig Frm Rev'd


Active ProjectsDM-PE-6969 1996 GOVERNMENT BASIC EDUCATION REF 3.07 3.07 0.00 3.51 2.31 2.05

Total 3.07 3.07 0.00 3.51 2.31 2.05

Active Projects Closed Projects TotalTotal Disbursed (IBRD and IDA): 2.41 9.88 12.29

of which has been repaid: 0.00 .48 .48Total now held by IBRD and IDA: 6.14 9.46 15.60Amount sold 0.00 0.00 0.00

Of which repaid :0.00 0.00 0.00 0Total Undisbursed : 3.51 0.00 3.51 T a

a. Intended disbursements to date minus actual disbursements to date as projected at appraisal.

Note:Disbursement data is updated at the end of the first week of the month.

a

5. x3o. .B~

Generated by the Operations Information System (OIS)

Dominica at a glanceLatin Lower-

POVERTY and SOCIAL Amedca middle-Dominica & Carib. Income h Dvelopment diamond

1997Popuaton, mid-war (milons) 0.07 494 2,285 Life expectancyGNP per capita (Atlas meod,US$) 3.120 3,880 1,230GNP (Ats nmo", USS billions) 0.23 1,917 2,818

Average annual growth, 191197

Population ) 0.5 1.7 1.2 GNP GrossL.abor tore(). 2.3 1.3 GNGos

per primaryMost recent estimate (latst yer available, 1991197) capita enrollment

Poverty (% of pubion below neaonal poverty line)Urban population 1% of total population) 70 74 42Life expectncy at birth (years) 74 70 69Infant mortality (Per 1,000 live births) 16 32 38Child malnutriton (% of chiklren under 5) Access to safe waterAccess to safe water (% topulation) 73 84Iliteracy % ofpopulafon age 15+) 6 13 19Gross primary enrollment (% of schoowage population) III III Dorinira

male 11s Lower-middle-income groupFemale 113

KEY ECONOMIC RATIOS and LONG-TERM TRENDS

1976 1986 1996 19"7Economic mtros

GDP (US$ bilWions) 0.03 0.11 0.23Gross domestc investmenVGDP 22.3 28.3 TradeExports of goods and serviceslGOP 53.3 48.8Gross domes0c savingsGDP 16.4 12.9Gross nabional sningGDP 20.2 10.2

Current account balancelGDP -3.9 7.8 -16.8 , DomesbcInterest paynentslGDP 0.7 0.9 0.9 Sasings InvestmentTotal debGDP 17.6 51.1 47.2Total debt service/exports 1.3 7.9 5.8Present value of debtGDP 32.0Present value of debt/exports 63.6

Indebtedness1976-86 1987-97 1996 1997 1996-02

(average annual growth)GDP 8.7 2.2 3.3 DominicaGNP per capita 8.2 1.6 2.5 L I ower-niddle-income groupExports of goods and serices 7.1 0.6 8.9

STRUCTURE of the ECONOMY1976 1986 1996 1997 Growth rates of output and Investintnt I%)

(% of GOP)Agriculture 30.2 19.8Industry 14.5 21.6 20-Manufcturing 6.7 7.3 o 0

Services 55.2 58.5 40 , 2 1 *4 *5 ' *

Private const. ption 63.1 87.0 40General government consumption 20.5 20.1 - GD -GDPImports of goods and services 59.2 62.2

(average annual wowth)197646 1987-97 1996 1997 Growth rates of exports and Imports(%)

Agriculture -2.6 -3.7 2.4 20,Industry 2.8 2.4 -1.8 10,

Manufacturing 5.0 0.0 2.2Seices 4.6 3.2 3.9 ;-

Priate consumpbon 1.1 2.1 5.9 .. . '7General government consumpbon 3.8 2.4 1.5Gross domestic investment 4.3 0.9 -16.5 -20 Imports of goods and servkes 2.0 0.3 -0.6 - Exports - knpocdsGross national product 8.6. 1.6 3.4

Note: 1997 data are preiminary estimates.

The diamonds show tour key indiators in the countr (in bold) compared with its income-group average. n data are missing. the diamond willbe incomplete.

Dominica

PRICES and GOVRNMENT FINANCE _ __ __ -

DOMe"*Ic prices 1976 1986 1996 1997 Inflation (%)

Consumer pnces 11.0 3.0 1.7 2.2t.-kmplicit GDP deflator 19.2 8.2 1.8 0.7 4

Govwrnme Oinance 2-(% of GDP, includes cu'entgrants) o --Current reveue . .. 32.0 .. 92 93 94 95 96 97Curfen budoet balance . .. 3.1 -GDP deflator -- CPIOverall surplus/deficit 1.2 ..

TRADE _____ _____

(USS millions) 1976 1986 1996 1997 Export and Import levels (USM millions)Total exports (fob) 53 53 ,

Other manufactures 17 i8Bananas .

Uanufactures 36 37 t°°-*Total imports cif) il l t11 115Food sd JJFuel and energy

Capital goods o-91 92 93 94 95 6 97

Exp toriprce index(199f-100) . 113Import price index (1995=100) 95 a EVorts * knportsTerms of trae (195=100) 119

BALANCE of PAYMENTS ___-

(1976 1986 1996 1997 Current account balance to GDP ratio I%)(USS milSons)Exports of goods and serwcs 14 58 114 121 aImportsofgoodsand servcs 1t9 64 145 149,Resource balance 6 -8 -31 -28 5-

Not income 0 -5 -19 t19 -oNet current transiers 4 20 11 aCurrent account balance -1 9 -39 -39

Financing items (net) 2 -3 40 39 20Changes in net reseres 0 -6 -1 -1 -25 -

Afemo:_ ___Reserves induding gold (US$ milions) .. .. 23 24Convemsion rate fDEC, loc&USS) 2.6, 2.7 2.7 2.7

EXTERNAL DEBT and RESOURCE FLOWS __________1976 1986 1996 1997

(USS millions) Composition of total debt, 1S95 (USS mtlilons)Total debt outstanding and disbursed 5 57 110

IRD 0 0 0 0IDA 0 5 12 12 G 16 8: 12

Total debt service 0 5 7IBRD 0 0 0 0IDA 0 0 0 0

Composition of net resource ilowsOfficial grants 2 4 23Offcialcreditors 1 1 3 E:35Ptivatecreditors 0 0 0 .0 46Foreign direct investment 0 3 19Portfol oequity 0 0 0

World Bank programCommitments 0 0 6 0 A - BRD E - Bilsra!Distursements 0 0 0 1 B - IDA 0 - Ote mulbtal F - PriaePnincipal repasments 0 0 0 0 C - M G - ShofltarmNet flows 0 0 0 1Interest pawnents 0 0 0 0Nettransfers 0 0 0 1

World Bank * 10/1198

81 ANNEX 5


PROGRAM PROCESSING BUDGET & SCHEDULE

A. Program Budget Planned Actual$296,100 $235,500

B. Program SchedulePlanned Actual

Time taken to prepare the program (months) 4 months 4 monthsFirst Bank mission (identification) 08/14/1998 08/14/1998Appraisal mission departure 09/21/1998 09/21/1998Negotiations 11/02/1998 11/23/1998Planned Date of Effectiveness 01/31/1999

C. Prepared by: St. Kitts & Nevis - Ministry of Finance, Planning and DevelopmentSt. Lucia - Ministry of Finance and PlanningDominica - Ministry of Finance, Industry and PlanningSt. Vincent & the Grenadines - TBDGrenada - TBD

D. Preparation assistance: Bank Budget

E. Core Project Preparation Team:

Name SpecialtyEugene D. McCarthy Task Team Leader, Principal Operations OfficerBernard Becq EngineerOliver Davidson Consultant, Emergency Management Specialist,

Counterpart InternationalJohn Guerre Consultant, Community Development and Loss Reduction

Specialist, U.S. Federal Emergency Management AgencyRumana Huque Urban PlannerAndrei Iatsenia Environmental SpecialistEfraim Jimenez Procurement SpecialistDebra Larson Consultant, Early Warning and Communication Systems

Specialist, U.S. National Weather ServiceThakoor Persaud Senior EconomistRajeev Swami Financial Management SpecialistKevin Tomlinson Program Assistant

82 ANNEX 6

ORGANIZATION OF EASTERN CARIBBEAN STATESECONOM1C DEVELOPMENTS AND BANK PROGRAM IMPLEMENTATION

(DECEMBER 1998)

Background:

1. This annex summarizes the main economic developments in the countries of theOrganization of Eastern Caribbean States (OECS)' and the implementation of the Bank's programsince the April 1995 CAS. The Bank Group's strategy for the OECS aims to help these countriesin their efforts at reducing poverty and attaining sustainable growth, focusing particularly onlimiting economic reversals from natural disasters, assisting the transition from agriculture toservice-based economies, and helping to reduce per capita costs of infrastructure and serviceprovision through the introduction of sub-regional coordination mechanisms. The projects andprograms currently under implementation or in preparation rely on these principles andcomplement the programs of other institutions, such as the European Union and the CaribbeanDevelopment Bank. Some of the issues that are being addressed by the Bank aretelecommunications reform, waste management, education reform, safety-net mechanisms, anddisaster management. Institutional development, at the country level and at the sub-regional level,is key in each one of these initiatives. Preparation has begun for a new OECS CAS, which iscurrently scheduled for Board presentation in FY00.

2. The OECS countries face special development challenges because of their small size andvulnerability to natural disasters. On the one hand, with an overall population of half million2 theper capita cost of economic and social infrastructure is very high in the OECS. On the other hand,hurricanes and floods regularly reverse economic gains by destroying fixed investments anddisrupting economic activities, particularly in agriculture and tourism. In addition most of theislands have traditionally been monocrop economies (bananas for Dominica, St. Lucia, St. Vincentand the Grenadines and to a lesser extentGrenada, and sugarcane for St. Kitts andNevis) and have relied on preferential trade Population (1997) 485,000arrangements for their main exports. These Average popn growth (1991-96) 0.8%

affangement are nowinjeopadGDP (1996) US$1,651 mill..arrangements are now in Jeopardy due to an GNP per capita (1997-Atas) USS3,371unfavorable World Trade Organization GDP growth (96-97) 3.9%

(WTO) ruling. GDP growth (91-97) 3.2%Fiscal DeficitVGDP (1996) 0.8%

Economic Developments: Inflation p.a. (1996) 1.1%CurrentAccount/GDP(1996) 4.7/o

3. After the impressive growthperformance of the OECS in the 1980's (an Ilfiteraiyof -6 pr ea),grwt i te nfant mortality rate 1/0average of 5-6% per year), growth m the Access to safe water 100%1990's has slowed (approximately 3% per Life expectancy 71 yrs.year). The primary reason for the stronggrowth rates of the 1980's was a favorable external environment: concessional aid flows financinga large portion of public investments in infrastructure; preferential market access and favorableprices allowing a twofold increase in banana exports receipts; and fast growth in the tourism sector

The OECS consists of 6 independent states, Antigua and Barbuda, Dominica, Grenada, St. Kitts andNevis, St. Lucia, and St. Vincent and the Grenadines. Antigua and Barbuda is not included in theCAS update because it is not a borrowing member of the World Bank.

2 1997 estimates: Dominica 75,000; Grenada 99,000; St. Kitts and Nevis 41,000; St. Lucia 158,000;St. Vincent and the Grenadines 112,000.

83 ANNEX 6

fueled by foreign investment (albeit starting from a small base). In the 1990s, external flowsdeclined, with concessional aid flows declining rapidly, from a peak of about 9 percent of GDP inthe early 1980s to about 4 percent in the 1990s and with foreign direct investment remainingsteady (7.9 percent of GDP in the 1980s and 8.6 percent in the 1990s).

4. The main economic trend in the OECS countries, during the 1990s, has been the rapidtransition from agriculture-based economies to service-based ones, mainly tourism.3 The WTOruling against the preferential treatment of Caribbean bananas accelerated this trend. Relative tothe first half of the 1990s, the prospects for GDP growth have improved somewhat, due mainly tothe expansion of the tourism sector in substitution of the banana industry as the main foreignexchange earner (Annex I).4 In addition, the Eastern Caribbean islands continue to enjoy someinherent advantages. Their population is highly educated (illiteracy rates range from 1-5 percent),their relative proximity to the markets of North America and Europe and their attractive naturalresources offer them the opportunity to further develop their tourism sector.

5. Future growth perspectives have improved somewhat in most of the OECS countries. Inparticular, the European Union has also introduced Stabex-financed banana recovery plans in theWindward countries in order to improve quality and productivity through better agriculturaltechniques. The results are beginning to be felt with a marked improvement on the quality indexfor exported bananas, which rose from 76 in 1996 to 84 in 1997-on a scale of 100 and with ascore of 80 considered acceptable. The European Union is also facilitating the use of Stabexfunds by offering-starting with Stabex '95-general budgetary support instead of project-specific financing.5

6. There has also been some improvement in the tourism sector which, besides generatingmost of the region's foreign exchange earnings, is also behind most of the foreign directinvestment (FDI) received by the countries. The expansion of the sector is, therefore, expectedto bring more FDI as anticipated in the case of St. Lucia, where FDI is expected to jump fromUS$14 million in 1997 to US$37 million in 1998 due to the construction of a new hotel unit.

7. The OECS economies are projected to sustain, in most cases, the current growth trendtoward the year 2000 with some improvement in the-traditionally highxternal current accountdeficits.6 Creditworthiness indicators-net international reserves, debt-to-GDP, and debt service-to-exports of goods and non-factor services-are projected to be stable and within comfortableranges. In particular, net international reserves are expected to continue accumulating in virtuallyall countries.

8. Even with the good overall economic growth prospects, creditworthiness could beseriously hampered by large natural-disaster-related losses or large public expenditure/investment

3 For example, in St. Lucia agriculture represented approximately 16 percent of the total GDP valueadded in 1977 while tourism represented 21 percent. The agriculture and tourism percentages for1996 were 9% and 32% respectively.

4 In St. Lucia, for instance, travel receipts increased by over 55 percent in dollar terms in 1993-98whereas the dollar value of banana exports fell by almost 50 percent. By the samne token, while theshare of tourism in the exports of goods and services reached 70 percent in 1998, up from 52 percentin 1993, the participation of banana exports decreased from 15 percent to 7 percent.

s In the case of St. Lucia, for example, Stabex has represented an imnportant source of publicinvestment financing-Stabex '94 totaled ECU 22.2 million, Stabex '95 ECU 17.7 million, andStabex '96/97, not yet committed but already announced, amount together to ECU 12.6 million.

6 The current account deficits have been financed by a blend of aid flows, foreign direct investinent,and concessional borrowing.

84 ANNEX 6

commitments. A disaster mitigation project addresses the former, whereas regional programsmeant to generate economies of scale-to reduce the per capita cost of infrastructure andservices-help address the latter.

Implementation of the Bank's Assistance Program

9. The 1995 CAS foresaw direct Bank lending to the OECS of about $10 million annuallyfor FY95-98. The bulk of the Bank's financial assistance to the sub-region was going to be basedon Caribbean Development Bank (CDB) lines of credit in a wholesale-retail partnership.However, in recent years CDB has encountered difficulties in disbursing those lines of credit.The fifth such credit line, CDB V (US$32 million) was approved by the Board in FY90 and willbe closing at the end of this calendar year with US$14 million remaining undisbursed. CDB VI(US$32 million) which was approved in FY94 had no commitments in 4 years and was cancelledin June 1998. At the request of the governments of the region, the Bank has agreed to increase itsdirect lending to these countries, while maintaining a strong partnership with CDB. The increasein direct Bank lending has been facilitated by the use of more flexible instruments (such as APLsand LILs), leading to a reduction in lending costs. As a result, the Bank's portfolio in the OECSwill increase from 4 to 7 projects by the end of FY99 compared with FY97,' which will still bewithin the exposure envisaged in the 1995 CAS.

7 Lending to the OECS since the 1995 CAS:Total IBRD IDA

OECS Waste Management $11.5 million $6.8 $4.7St Lucia Education $7 million $3.5 $3.5Grenada Education $8 million $4.0 $4.0Dominica Education $7 million $3.5 $3.5OECS Telecom $6 million $3.6 $2.4Total $39.5 million $21.4 $18.1

85 Annex 6

ANNEX 6: Table 1 - Selected Economic Indicators

Doniinica 1992-95 1996 1997 1998 1999 2000

RealGDPgrowth(%) 2.1 3.1 1.8 2.8 3.0 3.0

Tourismn ReceiptstXGS (/o) 29.6 31.8 32.6 33.0 33.2 33.4Banana Receipts/XGS (%) -22.9 15.4 15.4 12.6 12.5 12.5

CAB/GDP (%) -15.6 -16.8 -16.1 -15.9 -16.2 -15.4Net Intemational Reserves(USS M) 19.4 23.2 23.9 24.7 25.8 27.2Extemal Debt/GDP (/6)" 46.4 43.9 37.2 36.7 37.3 36.2External Debt Service/XGNFS (%) 6.7 7.7 8.8 5.7 7.0 6.5

Grenada 1992-95 1996 1997 1998 1999 2000

Real GDP growth (%) 1.6 3.0 4.7 4.8 4.0 4.0Tourism ReceiptstXGNFS (%) 68.8 69.6 51.7 63.5 65.2 65.0Banana Receipts/XGNFS (%) 2.0 .. ..

CABtGDP(%) -8.6 -8.5 -13.2 -16.5 -13.5 -12.8Net Intemational Reserves(US$ M) 29.9 35.7 42.6 44.6 48.2 54.3Extemal Debt1GDP (%) " 33.4 28.8 26.7 28.5 32.8 31.9

External Debt Service/XGNFS (%) 5.9 6.7 5.4 5.3 4.9 8.6

St. Kitts & Nevis 1992-95 1996 1997 1998 1999 2000

Real GDP growth (%) 4.4 6.1 6.6 3.2 4.0 3.7Tourism ReceiptstXGS (%) 57.0 52.7 50.7 52.6 51.9 51.5Sugar Receipts/XGS (%) 10.7 9.3 15.8 12.0 12.2 11.7CAB)GDP (%) -11.0 -26.5 -20.8 -18.5 -16.3 -14.4Net International Reserves(USS M) 30.2 32.7 36.0 36.2 37.6 37.7External DebttGDP (%) " 22.4 23.5 37.7 40.4 40.4 40.0

External Debt Service/XGNFS (%) 1' 3.8 4.7 4.4 8.0 9.3 9.3

St. Lucia 1992-95 1996 1997 1998 1999 2000

Real GDP growth (%) 3.8 1.4 2.1 2.9 3.5 3.8Tourism Receipts/XGS (%) 55.7 63.2 67.0 70.1 70.0 71.9BananaReceipts/XGS(%) 15.0 12.4 7.3 6.6 7.1 8.2CAB/GDP(%) -9.3 -10.5 -12.5 -8.1 -8.7 -8.4Net Intemational Reserves (USS M) 57.2 54.1 59.0 59.7 59.7 61.1Extemal Debt/GDP (Yo) "' 23.0 24.8 26.4 27.0 27.2 27.3Extemal Debt Service/XGNFS (%))" 3.9 3.4 3.7 4.2 4.2 4.2

St. Vincent & the Grenadines 1992-95 1996 1997 1998 1999 2000

Real GDP growth (V) 3.0 1.3 2.2 3.5 4.5 4.5

Tourism Receipts/XGNFS (%) 33.5 44.4 49.6 49.4 48.1 48.1BananaReceipts/XGNFS(%) 20.4 14.2 10.1 11.8 13.5 13.5CABtGDP(%) -12.1 -12.3 -21.1 -18.0 -12.7 -12.5Net Intemational Reserves (USS M) 30.9 29.4 30.4 30.4 30.4 30.4Exteral DebtAGDP (%)i 33.2 31.9 32.2 34.3 32.9 33.0External Debt Service/XGNFS (%) 5.1 5.9 6.2 5.9 5.9 5.9

1/ Total public and publicly gateed debt.2/ Projedimns completed before hurricu Goroes.

86 Annex 6

ANNEX 6: Table 2 - IDA Commitments and Disbursements

IDA Commitments and Disbursements to the OECSby Fiscal Year

(USS million)

Country 1990 1991 1992 1993 1994 1995 1996 1997 1995 TOTAL

COMMITMENTS 5.29 1.50 9.99 9.ee 9.99 5.1 9.60 e.99 2.49 26.80Dominke 0.00 0.00 0.00 0.00 0.00 0.60 3.10 0.00 0.60 4.30Grenada 0.00 0.00 0.00 0.00 0.00 0.00 3.80 0.00 0.60 4.40St. Kils A Nevis 0.00 1.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1.50St. Lucia 5.20 0.00 0.00 0.00 0.00 5.70 2.70 0.00 0.60 14.20St. Vincenid Grenadines 0.00 0.00 0.00 0.00 0.00 1.80 0.00 0.00 0.60 2.40

DISBURISEMENTS 1.79 4.00 3.60 3.59 1.99 9.29 2.39 1.59 2.59 20.99Domnuica 0.60 0.70 0.40 0.20 0.10 0.20 0.10 0.50 0.90 3.70Grenada 0.50 1.50 0.50 0.00 0.00 0.00 0.00 0.50 0.00 3.00St. Li, & Nevis 0.00 0.00 0.50 0.40 0.70 0.00 0.00 0.00 0.00 1.60SL Lucia 0.00 0.60 1.50 3.20 0.20 0.00 2.20 0.50 1.90 10.10St. Vincenth Grenadines 0.60 1.20 0.70 0.00 0.00 0.00 0.00 0.00 0.00 2.50

Source: _CT. World Bank

90O 80° 70° 60c

UNID STATES OF AMERICA QECSEMERGENCY RECOVERY AND

DISASTER MANAGEMENT PROGRAM

9/29

-30° q > , 30'-

rS - >) KX. ;3 9/28 -\ TROPICAL DEPRESSION

- - st % TROPICAL STORM

- i \. HURRICANE

INTERNATIONAL BOUNDARIES

C) F 11 < 4 5 10 Is IAHAMAS I I 500 I 1000 KILOMETERS

/9/2. Q;'-~~t-44.9/24

-205 1 l/45 o / !+ i _ ",\ = . 20o-~~~~~N Rco (S)

| 1- 1/2 iD Ii0/27 GECORGES 'st & cot

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