Document of

The World Bank

Report No: 20297-AL

PROJECT APPRAISAL DOCUMENT

ONA

PROPOSED LOAN

IN THE AMOUNT OF US$83.46 MILLION

TO THE

DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA

FOR THE

AIN TEMOUCHENT EMERGENCY EARTHQUAKE RECOVERY PROJECT

JUNE 3, 2000

Infrastructure Development GroupMaghreb DepartmentMiddle East and North Africa Region

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CURRENCY EQUIVALENTS

(Exchange Rate Effective April 2000)

Currency Unit = Algerian DinarDA 74 = US$ 1

US$ 0.0135 = DA I

FISCAL YEARJuly 1 June 30

ABBREVIATIONS AND ACRONYMS

AEP Alimentation d'Eau PotableBA Beneficiary AssessmentBAD Algerian Bank for DevelopmentBMN Basic Minimum NeedsCGS National Earthquake Center for Engineering ResearchCICS Interministerial Committee for Coordination

and Follow-up for Reconstruction of theAin Temouchent Disaster Area

CRAAG Center for Astrophysical and Geophysical ResearchDGPC General Directorate for Civil ProtectionDUC Social Rental and Building AdministrationEMP Environmental Management PlanFMS Financial Management Specialist or

Financial Management SystemGIS Geographic Information SystemGPN General Procurement NoticeIGF General Inspectorate of FinanceIT Information TechnologyLAA Land Acquisition AssessmentLTDA Local Technical Departments and AgenciesM&E Monitoring and EvaluationNBF Not Bank-financedNGO Non-Governmental OrganizationO&M Operations and MaintenanceOPGI Office for Real Estate AdministrationPCU Project Coordination UnitPIP Project Implementation PlanPMR Project Management ReportPRA Participatory Rural AppraisalSA Special AccountSOE Statement of ExpenditureWWTP Wastewater treatment plant

Vice President: Jean-Louis SarbibCountry Manager/Director: Christian Delvoie

Sector Director: Jean-Claude VilliardTask Team Leader/Task Manager: Piotr Wilczynski

ALGERIAAIN TEMOUCHENT EMERGENCY EARTHQUAKE RECOVERY PROJECT

CONTENTS

A. Project Development Objective Page

1. Project development objective 22. Key performance indicators 2

B. Strategic Context

1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 32. Main sector issues and Government strategy 33. Sector issues to be addressed by the project and strategic choices 4

C. Project Description Summary

1. Project components 52. Key policy and institutional reforms supported by the project 73. Benefits and target population 74. Institutional and implementation arrangements 8

D. Project Rationale

1. Project alternatives considered and reasons for rejection 102. Major related projects financed by the Bank and other development agencies 113. Lessons learned and reflected in proposed project design 114. Indications of borrower commitmnent and ownership 125. Value added of Bank support in this project 12

E. Summary Project Analysis

1. Economic 122. Financial 123. Technical 134. Institutional 135. Environment 146. Social 157. Safeguard Policies 17

F. Sustainability and Risks

1. Sustainability 172. Critical risks 173. Possible controversial aspects 18

G. Main Loan Conditions

1. Effectiveness Condition 182. Other 18

H. Readiness for Implementation 19

I. Compliance with Bank Policies 19

Annexes

Annex 1: Project Design Summary 20Annex 2: Project Description 24Annex 3: Estimated Project Costs 49Annex 4: Economic and Financial Analysis 50Annex 5: Financial Summary 51Annex 6: Procurement and Disbursement Arrangements 52Annex 7: Project Processing Schedule 63Annex 8: Documents in the Project File 64Annex 9: Statement of Loans and Credits 65Annex 10: Country at a Glance 67Annex 11: Social Assessment 69Annex 12: Environment Management Plan 80

MAP(S)IBRD 30909

ALGERIA

Am Temouchent Emergency Earthquake Recovery Project

Project Appraisal Document

Middle East and North Africa RegionMNSID

Date: June 3, 2000 Team Leader: Piotr M. WilczynskiCountry Manager/Director: Christian Delvoie Sector Manager/Director: Jean-Claude VilliardProject ID: P069947 Sector(s): BI - Institutional Development, TR - Rural

Roads, UH - Urban Housing, WR - Rural Water Supply &Sanitation, WU - Urban Water Supply

Lending Instrument: Emergency Recovery Loan (ERL) Theme(s):Poverty Targeted Intervention: N

Project Financing DataZ Loan O Credit O Grant O Guarantee O Other (Specify)

For LoanslCredits/Others:Amount (US$m): 83.46

Proposed Terms: Fixed-Spread Loan (FSL)Grace period (years): 2 Years to maturity: 16.5Commitment fee: 0.85% of Service charge: 0.00%undisbursed balances for first fouryears; 0.75% thereafterFront end fee on Bank loan: 1.00%

GOVERNMENT 24.75 0.67 25.42IBRD 59.33 24.13 83.46

BENEFICIARIES 3.97 0.00 3.97

Total: 88.05 24.80 112.85

Borrower: GOVERNMENT OF ALGERIAResponsible agency: MINISTRY OF INTERIOR AND LOCAL GOVERNMENTS

Address: Palais du Gouvemement, AlgerContact Person: Mr. R. Ould AmeurTel: 213-2-732340 Fax: 213-2-736106 Email:

Estimated disbursements ( Bank FY/US$M):

Annual 35.5 39.0 8.9Cumulative 35.5 74.5 83.4

Project implementation period: 3 YearsExpected effectiveness date: 07/15/2000 Expected closing date: 12/31/2003

UCS PAD Fm: Re. ,S 2a000-

A. Project Development Objective

1. Project development objective: (see Annex 1)

The project's development objective is to restore normal functioning of communities damaged by theDecember 22, 1999 earthquake in the Wilaya of Ain Temouchent and to increase national preparedness forfuture disasters.

Earthquake of Ain Temouchent

On December 22, 1999 an earthquake estimated at magnitude 5.5 occurred in the Wilaya (Province) of AinTemouchent, located in western Algeria about 75 kilometers from Oran. The Wilaya of Ain Temouchenthas about 327,000 residents settled in 28 communities.

The earthquake struck at 6:37 p.m. Strong ground motion lasted about 15 seconds, according to theAlgerian National Earthquake Engineering Center. The earthquake occurred along a previously unknownfault, at an estimated depth of 10 km. Its epicenter is believed to have been 5 km south of the city of AinTemouchent, the largest settlement in the wilaya. There was no surface faulting. Ten aftershocks occurredwithin a few hours of the earthquake, varying in magnitude from 3.8 to 5.1.

Damage to Housing and Infrastructure. The earthquake caused severest damage in four communities,Aui Temouchent, Sidi Ben Adda, Ain Tolba and An Lalam. Twenty-seven people died in the collapse ofresidential units and 274 people were injured. About 7000 housing units were damaged, as well as watersupply systems, sewerage systems, roads, schools, health facilities and government offices. The disasterdamaged the housing of about 30,000 people in the wilaya. The cost of physical damage from theearthquake is currently estimated at about US$100-120 million.

National Emergency Response System Severely Tested. At the request of the Algerian government, theBank conducted a mission in the afternath of the earthquake. The mission's review of the currentorganizational systems for the management of emergencies at the national, provincial and municipal levels,including enabling laws and decrees, emergency plans, operational procedures, equipment needs, mutualassistance agreements, roles and responsibilities, and communications capabilities, has pointed out the needto upgrade the Government's emergency management system to improve future risk management anddisaster preparedness.

2. Key performance indicators: (see Annex 1)

The TEERP (Ain Temouchent Emergency Earthquake Recovery Project) will be evaluated against thefollowing key performance indicators:

* Families displaced by the earthquake will move into earthquake-resistant permanent housing;

* Replacements for technical infrastructure (water systems, sewerage, etc.) destroyed by earthquake willbe in use;

* Replacements for social infrastructure (schools, clinics) destroyed by earthquake will be in use;

* The Government's new emergency system will be strengthened.

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B. Strategic Context1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1)Document number: 15316-AL Date of latest CAS discussion: 02/05/96

The project will support in particular the CAS objective of protecting the poor during Algeria's transitionto a market economy, and reflects the CAS priority on interventions, such as housing, that will make aqualitative and quick difference in the lives of people.

The most recent CAS

The CAS for the current period will be finalized in FY200 1. The previous CAS, formally designed for the1996-1997 period, made the case that Algeria's transition to a market economy must be carried out withproper attention to poverty relief. In particular, poverty relief and social protection are now much neededin the areas affected by the earthquake, as its effects compound an already delicate situation in terms ofunemployment and a housing shortage.

The principles guiding current Bank strategy include:* Select interventions that would make a qualitative and quick difference in the lives of people, of which

housing is a principal example;o Reinforce solid economic performance;* Retain maximum flexibility in choosing Bank assistance instruments, focusing on simple, easily

implementable operations.

The proposed TEERP project is in line with these guiding principles. The project objective is to restore theliving conditions of people, and particularly the poorest inhabitants of the affected region. Constructionplanned under the project will generate job opportunities for Algerians. The project will enable theGovernment to respond to future emergencies with quick and effective action to support the lives of thepoorest Algerians. The built-in flexibility of the Bank's Algeria strategy and its strong social focus arefully consistent with this emergency response. The project design is simple, and it is intended that theproject be easily implementable by the Project Coordination Unit.

2. Main sector issues and Government strategy:

Preparedness of the disaster response system. Disaster response in Algeria today is structured by thesystem set up in the aftermath of the 1980 El Asnam earthquake, a magnitude 7.2 earthquake which killed2300 people, caused 8300 injuries, left 479,000 homeless, destroyed 20,000 buildings and caused anestimated direct loss of US$2 billion.

Subsequent to that earthquake, a 1985 decree (No. 85.231) established the legal structure of Algerian civilprotection, providing for decentralized authority and responsibility to the wilayas and their govemors,although all levels of government were directed to establish plans for emergency preparedness, emergencyresponse protocols, and procedures, following common operational priorities and guidelines.

In accordance with that decree, disaster organization in Algeria is today highly decentralized.Municipalities and the govemors of wilayas have lead responsibility for all emergencies, while the role ofthe central government is to provide assistance as requested. Inter-ministerial coordination takes placethrough structures called crisis cells, which are formed at the provincial level in response to an emergencyand which may be formed at the national level as well: a national-level crisis cell is established when more

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than one wilaya is affected by an emergency or at the request of the govemor of an affected wilaya. Anational-level Crisis Cell has formed in response to the December 22, 1999 earthquake in response to therequest of the Governor of the Wilaya of Ain Temouchent.

Civil Protection (DGPC) in Algeria performed ably in the hours following the Ain Temouchent earthquake.Officials at the provincial and national level followed established plans and protocols. Efforts to rescuetrapped victims and provide medical assistance were undertaken immediately; specific requests forassistance were addressed to adjacent wilayas and the national government in the first hours following theevent; temporary shelters were in place within hours; and the damage assessment process was wellcoordinated and timely.

Despite these successes, the Government of Algeria is mindful that the Ain Temouchent was amoderate-sized earthquake and that the impacts, while severe in some areas, were limited. Reflecting onthe experience gained in the December 22,1999 earthquake, the Government of Algeria has judged that itscurrent system requires reinforcement. The Government's priority areas include search and rescueequipment and training, an upgraded communications and data processing system including GIS, improvedestimates of likely damages to urban areas, and additional training.

Risk management. Algeria's system of risk management principally features legislation providing that theGovernment will protect and support the lives of the Algerian population affected by natural disasters. Insituations of natural disaster, many are unprepared to overcome income shocks and would be unable tosecure the minimum necessary food and shelter. In light of this, and in the absence of an affordableinsurance scheme against natural disasters, the Government has obligated itself to supply safe water, foodand shelter to those affected by natural disaster. In light of these considerations, the Government isinterested in ways to improve management of disaster risks. In addition to the measures above which willreduce risk by improving assessment of vulnerable points and enhancing the Government's ability to takeearly and cost-effective measures in case of emergency, the Government intends to assess the feasibility ofinstituting a national earthquake insurance program and improve capacity for building code enforcementand monitoring of construction practices.

Housing shortage. Housing in urban areas was in short supply even before the further losses caused bythe earthquake.

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

Increasing the preparedness of the disaster response system. The project will assist the Government tointroduce measures to reduce potential losses from natural disasters in the future, by improving theemergency response system at the central and local levels. Following an assessment of current systems, theproject will support an improved seismic and geographic information base, upgraded communications anddata processing, search and rescue equipment and training.

Support for risk management strategies. The project will support the Government's effort to manage therisks of disaster through (a) improvement of capacity for building code enforcement and enforcement ofseismic-resistant construction, and (b) policy assessment of the feasibility of a national earthquakeinsurance program. No strategic choices have yet been made with respect to these issues; assessment ofcurrent standards and practices is an early project activity.

Provide housing in the Wilaya of Ain Temouchent The project will support recovery of the affectedregion through reconstruction and rehabilitation of housing and technical/social infrastructure. The new

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housing will be built to seismically-resistant standards. The project will not attempt to address long-termsectoral issues; however, in accordance with the Bank-supported move to private ownership as well asGovernment policy, the new units will be available for purchase by beneficianies.

C. Project Description Summary

1. Project components (see Annex 2 for a detailed description and Annex 3 for a detailed costbreakdown):

Component A: Disaster Organization and Risk Management (US$9.37 million)

Objective. The objectives of this component are: (i) to strengthen the institutional capacity of emergencymanagement in Algeria to prepare for and manage the consequences of large-scale emergencies, especiallyearthquakes; and (ii) to promote a nationwide, comprehensive risk management strategy through:

* Enhancement of the capability of Algerian Civil Protection to carry out essential initial emergencyresponse activities including search and rescue operations;

* Enhancement of the national communications and information management capacities;* Enhancement of national seismic monitoring systems and understandings of the nature of seismic risk

in the Ain Temouchent region;* Enhancement of the capacity to enforce building codes and monitor construction practices; and* Promoting consideration of policy alternatives, especially the use of insurance and other risk transfer

mechanisms, that could moderate the financial strain on governmental operating budgets followingnatural disasters.

The activities defined in this Project will enhance the Government of Algeria's current disaster managementsystem and risk management strategies and programs.

The component will finance:

- Acquisition of emergency response and search-and-rescue capacity in Algeria through the purchase ofspecialized equipment and training in the use and maintenance of the equipment;

- Construction of facilities in Ain Temouchent and Ain Tolba to support the operations of CivilProtection in the region;

i Assessment of Civil Protection's current voice and data communications capacities, the development ofrecommendations for upgrades that build on current capabilities, and the enhancement of voice anddata systems and development of detailed earthquake response plans based upon detailed planningscenarios;

* Completion of a seismic risk assessment and microzonation for Ain Temouchent;* Enhancement of the Algerian seismic monitoring network;* Review of current standards, practices, and institutional capacities in building code enforcement and

construction monitoring, including recommendations enhancing effectiveness;* Assessment of the policy altematives and feasibility of instituting a national earthquake insurance

program in Algeria based on a review of current international practices.

Component B: Housing (US$65.78 million)

The principal objective of this component is to assist the Government of Algeria in the reconstruction ofpermanent housing in the areas affected by the earthquake.

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* The Social Rental Housing Reconstruction sub-component will finance technical assistance, design,supervision, training, and all necessary construction-related investments, to replace collapsed housingunits and those units having to be demolished whether due to unsafe conditions and heavy damage ordue to risky location. It is estimated that approximately 3,400 housing units are eligible forreconstruction.

* The Individual Non-grouped Housing Reconstruction sub-component will finance: (i) materials for 800units with contribution of sweat equity from beneficiaries; (ii) technical assistance, standard design,supervision, and training. Construction training will be provided, through which the beneficiaries willgain qualification and experience in the construction of earthquake-resistant buildings in order toundertake construction activities. Strict geo-technical and structural requirements will be applied toeach site and to each housing unit. The beneficiaries will purchase materials according to technicalspecifications. No modifications will be made to the standard designs, and no materials will be allowedfor use without prior approval from the Project Coordination Unit (PCU).

The supervision of construction of both the individual non-grouped housing and the social rental housingwill be provided through independent consultants to be employed by the PCU, or through the PCU staff, asappropriate.

Expenditures under this component may be eligible for retroactive financing.

Component C: Technical Infrastructure (US$8.39 million)

The objective of this component is to restore essential infrastructure for the benefit of the population atlarge and in particular for the population affected by the December 22, 1999 earthquake. The componentincludes design of infrastructure and supervision of its construction: water supply systems, seweragesystems and wastewater treatment plants, and roads. Construction of these facilities will be carried out inaccordance with current standards in Algeria, incorporating recommendations of the engineeringconsultants who, under contract with the PCU, will supervise the design and construction of the facilities.

Component D: Social Infrastructure (US$26.78 million)

The principal objective of this component is to assist and provide financing for the reconstruction of publicbuildings which provide vital social services, including schools, hospitals, recreation centers, andgovernment offices. Restoration of these facilities is essential to bringing back a sense of stability andnormality to the community and to restoring confidence in the Government's ability to deal with majorcatastrophes.

The Government of Algeria has conducted an assessment of damages, and these data have been reviewedand investigated by a team of national specialists financed by the World Bank. Among the findings werethe following:

* Of the 39 school buildings located within the Wilaya of Ain Temouchent, 12 were found to be heavilydamaged and will have to be reconstructed. The largest of these schools, Lycee Bachir Ibrahimi in AinTemouchent, formerly had about 1340 students. Besides the 12 schools which will need reconstruction,the earthquake also effectively damaged four additional schools, which will require major repairs.Construction of primary schools may be eligible for retroactive financing.

* The earthquake also destroyed or damaged numerous regional health facilities, including the main

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hospital in Ain Temouchent. Five health centers were severely damaged and need to be reconstructed.* Three public buildings were seriously damaged and will have to be completely rebuilt. Several others

were damaged and will have to be repaired.

Component E: Project Implementation (US$1.69 million)

This component will finance the creation and maintenance of a Project Coordination Unit (PCU) during theimplementation period.

.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~M

Component A: Disaster Organization Institutional 9.37 8.3 7.16 8.6and Risk Management DevelopmentComponent B: Housing Urban Housing 65.78 58.3 46.11 55.2Component C: Technical Infrastructure Other Water 8.39 7.4 6.80 8.1

Supply &Sanitation

Component D: Social Infrastructure Other Social 26.78 23.7 21.49 25.7Sector

Component E: Project Implementation Institutional 1.69 1.5 1.06 1.3Development

Total Project Costs 112.01 99.3 82.62 99.0Front-end fee 0.84 0.7 0.84 1.0

Total Financing Required 112.85 100.0 83.46 100.0

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

Building code. An updated building code was approved in Algeria in 1999. The Ain TemouchentEmergency Earthquake Recovery Project will support the enforcement of the building code by (a)strengthening institutional capacity to enforce building codes and to monitor construction practices, (b)designing structures which conform to the code, and (c) demonstrating earthquake-resistant construction inAin Temouchent.

3. Benefits and target population:

The project will target the earthquake-affected population as well as the whole Algerian population throughstrengthening of country's disaster management system.

Housing for displaced persons. Families displaced by the earthquake will benefit from housingconstructed under this project.

Recovery in affected communities. All members of the communities which have lost access to safe water,sewerage, roads, schools, and clinics will benefit from the reconstruction of technical and socialinfrastructure.

Safer housing. Inproved building code enforcement will protect the Algerian population from the negativeeffects of future earthquakes.

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Timely and well-targeted aid to those affected by disasters. The support for capacity-building indisaster management will benefit the Algerian population in future emergencies, when people affected bycatastrophes will receive timely aid, well-targeted to their anticipated needs.

Increased effectiveness of national expenditure. The national budget will be less affected by futuredisasters once risk management measures are in place.

Social cohesion. The project supports the Algerian Government's efforts to protect the poor and assuresocial cohesion through the support provided for shelter and safe water to those in need following naturalcatastrophes.

4. Institutional and implementation arrangements:

The project will be implemented over a three year period from July 15, 2000 to June 30, 2003.

Interministerial Committee. An Interministerial Committee for Coordination, and Follow-up forReconstruction of Ain Temouchent Disaster Area, or CICS (also called "ISC" in the Loan Agreement) willbe established. Its membership will include the Minister of Interior or his representative (Chair) as well asrepresentatives of the Ministry of Finance, Ministry of Housing, Ministry of Health, Ministry of WaterResources, Ministry of Public Works, Environment, Urban Affairs and Education, and representatives ofthe affected population. The CICS will be responsible for providing project oversight, advice and overallguidance for the implementation of the project. The CICS will review the project's quarterly progressreports.

Cooperation between the Project Coordination Unit and Local Technical Departments and Agencies(LTDAs) in Ain Temouchent. Local technical departments and agencies (LTDAs), the implementingagencies, in close coordination with and supported by the Project Coordination Unit (see below) willestablish implementation schedules for each component and define the responsibilities of each partyinvolved in project implementation. Based on terms of reference developed by LTDAs in cooperation withthe PCU, the LTDAs in coordination with the PCU will prepare bidding documents and contracts forconstruction works, goods and consultant services for all components. The PCU will assure quality controlof contracted activities; together with the responsible implementing agencies it will issue the letters ofcompliance to be attached to invoices sent to the Banque Algerienne du Developpement (BAD) forpayment. The PCU will arrange periodic social assessments and monitor compliance with Algerian andWorld Bank environmental regulations. The PCU will serve as a secretariat to the CICS, prepare theworking documents for the meetings of the CICS, and submit quarterly progress reports and annual auditreports to the Governor of the Wilaya of Ain Temouchent, CICS, and the Bank.

Project Coordination Unit. The Project Coordination Unit (PCU) will assist implementing agencies and inclose cooperation with them will help in implementation of the project. The PCU will be responsible foroverall coordination and supervision of the project. It will be established in the city of Ain Temouchent,and managed by a Director who will report directly to the Governor of the Wilaya. The Director will beresponsible for hiring the staff of the PCU, subject to Bank's no-objection. The project will be implementedunder the overall guidance of the CICS and in close coordination with the LTDAs.

Financial Management:

The Algerian Development Bank (BAD - Banque Algerienne du Developpement) will be responsible for

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project financial management, including processing of all financial transactions, reconciliation ofexpenditures with the approved project budget, as well as project records with the Bank records, and theSpecial Account replenishments. The BAD financial management system (FMS) now in place is based onprinciples and procedures defined by the legal framework applicable to the public sector. BAD maintainsan accounting system based on the cash basis and on the outline of budget components, according to theprovisions of the Public Accounting Law. Transactions in terms of comnmitmnents and disbursements arereflected in BAD accounting books maintained manually. BAD's financial management arrangementssatisfy the Bank's minimum requirements, as the public accounting legal framework used by the BADensures financial accountability. However, the BAD manual financial management system currently in usehas no capacity to generate the Bank-required management-oriented project reporting. Therefore, projectreporting and accounting functions will be the responsibility of the Project Coordination Unit (PCU)located in Ain Temouchent.

Proiect Coordination Unit. The PCU will be responsible for control of eligibility of project expenditures tobe paid by the BAD, and for project accounting and reporting. To fulfill these functions, the PCU will beadequately staffed, including an Accountant and a BAD staff member delegated to the PCU, by July 31,2000 (a dated Loan covenant confirmed during Negotiations). Terms of reference (TORs) for theAccountant are included in the Project Implementation Plan (PIP).

Reporting. The PCU will prepare quarterly Project Management Reports (PMRs) following the CashModel. In order to generate the PMRs, the PCU will establish a computerized project financialmanagement information system. Appropriate specialists would be hired to assist the PCU in developing ofthe project financial management information system and supporting documentation. Setting up the PCUfinancial management information system is to be completed no later than October 31, 2000. The contentof PMRs, agreed with the Borrower during Negotiations, is described in the Project Irnplementation Plan(PIP) and in Annex 6.

Audit. An annual audit of project records and accounts, including audit of the Special Account (SA), anddisbursements under Statements of Expenditures (SOEs) will be performed by an independent auditoracceptable to the Bank, according to the Intemational Standards of Accounting as issued by theInternational Federation of Accountants, the Bank's Guidelines (e.g., "Financial, accounting, reporting andauditing handbook - FARAH") and specific Terms of Reference (TORs) acceptable to the Bank. Theauditor will express a professional opinion on the annual project financial statements and will submit to theBank an annual audit report within six months after the end of each fiscal year.

Expenditure Control and Disbursements: Disbursements from the Bank loan will be made using thetraditional disbursement procedures. The MOF will delegate to the BAD management of the SpecialAccount that will be opened at the Central Bank of Algeria. The BAD senior officials who are designatedby the MOF will have the right to sign withdrawal applications. The BAD would prepare a request forinitial advance to the SA, and replenishment applications thereafter. GOA will ensure that the localcurrency equivalent to the amount advanced to the SA, and counterpart funds for the project, are availableto the BAD through budgetary allocations. The budgetary allocations would be based on the annual budgetfor the Project activities prepared by the PCU in collaboration with the MOF.

All expenditures to be paid by the BAD will be reviewed an approved by the PCU Director in two phases:(i) before commitrnents are made and contracts signed -- in terms of their eligibility under the LoanAgreement; (ii) when invoices are presented for payments -- in terms of an applicable contract existing aswell as confinnation that goods were delivered, works executed, or services rendered. Upon approval bythe PCU Director of invoices submitted for payment, the BAD staff delegated to the PCU in Ain

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Temouchent will be expected to pay them within five days.

Procurement: Considering the emergency nature of the project, most of the procurement of goods, works,and services will be done nationally. However, for consultancy services required to oversee and certify thedesign and construction of facilities such as housing, schools, hospitals, and other infrastructure preparedby the local firms, particularly the seismic design, as well as to ensure that the best level ofcost-effectiveness is reached, the consultants' services will be procured in accordance with the Guidelines:Selection and Employment of Consultants by World Bank Borrowers, January 1997 revised September1997 and January 1999.

Monitoring and evaluation arrangements. The PCU would be responsible for monitoring progressagainst agreed-upon monitoring and performance indicators. The PCU would submit quarterly and annualprogress reports to the Governor of the Wilaya (the Wali), the CICS and the Bank.

D. Project Rationale

1. Project alternatives considered and reasons for rejection:

Institutional arrangements. Project implementation by a national government ministry was consideredand rejected in favor of a PCU assisting and cooperating with local technical departments and agencies inAin Temouchent. This organizational design complies with the decentralized disaster managementprocedures now in place in Algeria. Moreover, a regionally-based arrangement will allow for more flexibleproject implementation than would central administration.

Reconstruction Relief Program without Support for Reform of Building Codes. The option ofdesigning a project without building in any institutional capacity enhancement was considered. However,without efficient building code enforcement, the effects of even a relatively minor earthquake will strain thenational budget. The Bank cannot provide the needed resources in every such case. Moreover, due to thesize of emergency loans, they tend to crowd out other important development lending programs which eitherhave to be postponed or substantially reduced. Finally, excessive government reliance on the Bankretroactive lending and emergency donor relief cannot be considered sustainable in light of the highprobability for the disaster occurrence in this country.

In situ construction versus new sites. In the case of social rental housing, reconstruction on the site of thedestroyed units was considered and rejected, because rebuilding these in situ would require scatteredconstruction processes that would significantly increase the complexity of the construction and thereforecause delay and raise costs.

Beneficiary selection. Several means of beneficiary selection were considered. It was decided thateligibility would be decided by a commission operating under the supervision of the Wali (the Govemor ofthe Wilaya) and consisting of elected representatives to local government, the Director of the Office forReal Estate Administration, the Director of the Social Rental and Building Administration, and thePresident of the Association of Disaster Victims. This combination was judged likely to produce atransparent and fair result.

Cost recovery. Stronger support for reform of the housing sector was considered, such as requiring rentallevels achieving actual cost recovery on new construction, but this was rejected as an inappropriate burdenfor an emergency operation.

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

9Cg~~~~~~~~~~~~~~Lts $^u .M ":o

Implementation Development

Bank-financed Progress (IP) Objective (DO)Mascara Emergency Reconstruction Loan No. 3813-AL S SProjectCadastre Project Loan No. 3488-AL S SLow Income Housing Project Loan No. 4361 -AL S S

Other development agencies - :

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

3. Lessons learned and reflected in the project design:

Activities intended to reduce the impact of the next disaster must be an integral part of recovery.Bank experience with disaster assistance to many countries worldwide has shown that mitigation activities,intended to reduce the impact of the next disasters, must be an integral part of both recovery andpre-disaster planning. TEERP incorporates this lesson in activities under Component A.

The most immediate need following a disaster is provision of shelter. Experience from recent Bankemergency reconstruction operations is that the best solution is to build to a habitable standard and assumethat the beneficiary will underwrite additional costs. TEERP accordingly intends to provide social housingdesigns to a basic standard.

Project design should be simple for an emergency operation. The design should be based onparticipation by the local community and take into account local implementation capacity. Implementationshould be flexible to ensure responsiveness to community needs. TEERP has a simple project design andhas simplified procurement arrangements as much as possible. The project has incorporated the findings ofan early social assessment, and anticipates incorporation of the findings of future social assessments intoongoing implementation.

Rebuilt houses must be earthquake-resistant. The experience from the previous emergency projectsteaches that disaster-affected families should be provided with guidance in earthquake-resistant buildingtechniques. Low cost reconstruction is desirable, but economizing on the structure of buildings is not costeffective given the recurrent character of disasters. Accordingly, TEERP-financed housing will beconstructed to a high standard of earthquake resistance; basic structures will be required to conform to anearthquake-resistant design which will itself be a project output.

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4. Indications of borrower commitment and ownership:

Project is response to Government request. The Government of Algeria requested the Bank's assistanceto develop a project addressing earthquake recovery and protection as an urgent operation. Duringdiscussions held between the Bank and the Govermment during the identification mission of January 2000,agreement was reached on the key points relating to the loan amount, allocation of funds, implementationarrangements, main project components and priority actions, and project preparation.

Continuing support. The Government has demonstrated continuous commitment through the involvementand cooperation of its agencies at the central and regional levels. Similar commitment has beendemonstrated during the project preparation by the Governor of the Wilaya of Ain Temouchent. TheGovermment has already selected a candidate to take a post of the PCU Director, so that the eventualDirector will have been involved from the outset in project preparation and implementation.

Institutional arrangements are linked to national disaster management structures. In the aftermath ofthe December 22 earthquake, the Governor of Ain Temouchent Wilaya established a Crisis Cell thatincluded representatives of the key ministries including Housing, Health, Water, General Directorate for theEnvironment and Interior. At the national level a similar structure was set up in Algiers headed by a seniorofficial from the Ministry of Interior. Those structures are the basis for the Interministerial Committee(CICS) which will furnish guidance to the PCU throughout project implementation.

5. Value added of Bank support in this project:

With the experience gained in emergency projects worldwide, and with its long history of support fordevelopment in Algeria, the Bank brings to the recovery and reconstruction process an organizationalframework and clear process for identifying, selecting and implementing priority investments formunicipal/rural infrastructure and emergency response management. Through the emergency project, theBank can provide funding when it is most critical.

The Bank is in a unique position among donors to retain an overall view of reconstruction/recoveryrequirements and has a unique ability to focus on policy and institutional reform and the economic andsocial aspects of reconstruction as well as the physical.

E. Summary Project Analysis (Detailed assessments are in the project file, see Annex 8)

1. Economic (see Annex 4):O Cost benefit NPV=US$ million; ERR % (see Annex 4)O Cost effectiveness* Other (specify)n/a

2. Financial (see Annex 5):NPV=US$ million; FRR = % (see Annex 4)

n/a

Fiscal Impact:

n/a

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3. Technical:The project's technical design is well suited to Algerian requirements for rapid investment for repair ofmunicipal technical and social infrastructure, public housing, and disaster hazard reduction. Specificinvestment identification and cost estimates have been calculated on the basis of data compiled andanalyzed by the preparation and appraisal missions, and reflect the priorities and costs identified by localgovernment and technical agencies, within an acceptable margin of error for costs. Allowances are madefor physical and price contingencies consistent with rapid disbursement for investment.

4. Institutional:Institutional arrangements for the project are relatively simple and decentralized in order to speed therecovery process in the affected area.

4.1 Executing agencies:

Interministerial Committee for Coordination, and Follow-up for Reconstruction of Ain TemouchentDisaster Area (CICS). The CICS will provide project oversight, advice and overall guidance for theimplementation of the project. The composition of the CICS largely mirrors the Crisis Cell established bythe Government in the aftermath of the December 22 earthquake. The Crisis Cell was responsible forcoordination of activities immediately taken to provide assistance to the affected Ain Temouchent region.

Ministry of Interior and Local Governments (MoW). The Minister of Interior or the Minister'srepresentative will chair the CICS. The Minister of Interior will be responsible for resolving issues whichcannot be resolved at the local level and which could form obstacles to expedited project implementation.

Governor of Wilaya. The Governor of the Wilaya of Ain Temouchent will oversee implementation of theproject at the local level. The Director of the PCU will refer to the Governor in relation to the issuesbeyond the scope of PCU authority.

Civil Protection (DGPC). Civil Protection (DGPC) and its regional offices are organizationally locatedunder the Ministry of Interior. DGPC is responsible for wide range of activities related to emergencysituations. For the purposes of the project, it will establish an ad-hoc risk management task force that willhave a lead responsibility for implementation of Component A. This team will be supported by the PCUfor all matters related to implementation.

4.2 Project management:

Project Coordination Unit (PCU). The PCU will be established in the city of Ain Temouchent, andmanaged by a Director who reports directly to the Governor of the Wilaya. The Director will beresponsible for hiring the staff of the PCU, subject to Bank's no-objection. The project will be implementedunder the overall guidance of the CICS in close coordination with local technical departments and agencies.

4.3 Procurement issues:

A procurement assessment was undertaken in April 2000. Algeria has procurement legislation which isgenerally in line with the Bank's Procurement Guidelines, although there are certain rules that are notacceptable to the Bank. For this project, the Bank's procedures and guidelines will supersede the nationallegislation. A procurement action plan to improve procurement management will be implemented (seeAnnex 6).

4.4 Financial management issues:

The risks related to the project's financial management are three, primarily related to ability to generate

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timely and accurate management-oriented project reports:(i) Capacity of staff in the PCU. Staffing the PCU with a qualified accountant by July 31, 2000 is adated Loan covenant.(ii) Capacity of project financial management information system to generate the agreed ProjectManagement Reports (PMRs). Setting up of the PCU project financial management informationsystem is to be completed by October 31, 2000 to generate PMRs as per agreed deadline.(iii) Delays in preparation of Project Management Reports (PMRs). Preparation of the first PMRs,acceptable to the Bank, by October 31, 2000, is a dated Loan covenant.

The project financial management implementation milestones, as reflected in the dated Loan covenants,were designed to mitigate the risk linked to the reporting insufficiencies identified in the BAD existingreporting system. The agreed actions will be progressively implemented to build up an adequate projectfinancial management information system by October 31, 2000.

The Bank will give special attention to the project financial management during the project implementationby providing the necessary technical assistance and training. In particular, project management reportingrequirements were agreed during Negotiations. The reporting formats together with TORs for theAccountant are described in the Project Implementation Plan (PIP). The financial management risks will besubject to a rigorous follow-up during the supervision missions. The general design of the financialmanagement reporting system for the project would be reviewed by no later than October 31, 2000.

5. Environmental: Environmental Category: B (Partial Assessment)5.1 Summarize the steps undertaken for environmental assessment and EMP preparation (includingconsultation and disclosure) and the significant issues and their treatment emerging from this analysis.

The most appropriate tool to ensure that environmental considerations are given adequate attention underan Emergency Recovery Project is an Environmental Management Plan. The EMP addresses the followingissues:

? Identification of impacts and definition of mitigation measures;3 Institutional strengthening with regard to the integration of environmental considerations into

project design and implementation;3 Definition of a monitoring scheme and related indicators.

The reconstruction/rehabilitation components of the project could lead to significant environmental impacts.The two major issues to be dealt with are (a) the proper siting of the wastewater treatment plant and (b) theproper siting of the housing agglomerations. The other environmental issues that should be dealt with arethe impacts of the road rehabilitation program as well as the public buildings reconstruction program(schools and hospitals mainly). The acceptable disposal of the construction debris is also anotherenvironmental concem that should be addressed.

The issue of consultation and disclosure will be addressed in the early stages of project implementation.This is exceptional practice only acceptable for emergency projects.

5.2 What are the main features of the EMP and are they adequate?

The project EMP has built-in features that should lead to enhanced ownership by the client. Enforcementof the environmental standards and procedures is responsibility of the local Inspectorate of Environmentand will be monitored by NGOs and the PCU environmental specialist. Although this is an emergencyoperation, environmental requirements will be fulfilled by implementing agencies and contractors inaccordance with local regulations and in a manner acceptable to the Bank. Bank financing will be providedto only these investments that meet the environmental criteria.

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5.3 For Category A and B projects, timeline and status of EA:Date of receipt of final draft: 04/05/00

5.4 How have stakeholders been consulted at the stage of (a) enviromnental screening and (b) draft EAreport on the environmental impacts and proposed environmenit management plan? Describe mechanismsof consultation that were used and which groups were consulted?

Because of the disaster and emergency nature of the issues to be addressed by the Government to supplyshelter and basic needs, only limited attention has been given to public consultation so far. Nevertheless,the technical departments of the regional government of Ain Temouchent conducted a survey inconsultation with the affected population and agreed on immediate and medium-term measures to addressenvironmental health and protection issues. Special attention will be paid to the sustainability of selectedtechnical infrastructure investment projects by allowing for O&M cost recovery and placing the ownershipof these investments with the beneficiary community.

5.5 What mechanisms have been established to monitor and evaluate the impact of the project on theenvironrnent? Do the indicators reflect the objectives and results of the EMP?

Reporting will be the main source of verification of the extent of achievements and success of themitigation measures recommended. Water and wastewater quality analyses will be conducted to insure thatthe quality of water supply and treated wastewater complies with the standards.

6. Social:6.1 Summarize key social issues relevant to the project objectives, and specify the project's socialdevelopment outcomes.

About thirty percent of the population is unemployed. Precarious econornic standing, not only in thequake-affected wilaya but countrywide, has poised much of the Algerian population on the edge ofvulnerability. This volatility places numerous groups at risk in the face of income shocks or naturaldisasters, jeopardizing their ability to secure the food and shelter necessary for survival.

The communities targeted for this project - Ain Temouchent, Sidi Ben Adda, Ain Tolba and Ain Lalam -reside in poor economic conditions. A social survey conducted after the quake to help assess damage in thefour communities revealed that of the 4,200 families interviewed, only about 34% of those questioned wereemployed (salaried). Only 2,262 of those interviewed were insured. Each family has about three children tosupport, with a total of 13,650 children in the families of those questioned. Within the four settlements, 518people were handicapped, of whom 285 suffered from chronic illnesses. Thus according to the results fromthe social survey, the population exposed to vulnerability by being impoverished and without resources isroughly 66% (2,772) - including those without income, those who have no resources, those who arehandicapped, and those who have acute illnesses.

6.2 Participatory Approach: How are key stakeholders participating in the project?

Community participation in the project cycle will increase a sense of ownership by beneficiaries and thewillingness to maintain (and protect) completed works; improve implementation efficiency; foster inclusionthrough project implementation; help to identify vulnerable groups; and aid in leaving behind functionalinstitutions and increased capacity. Participatory methods should include local administration,representatives from various civil society organizations, and a wide selection of commune members.Institutionalizing participation requires organizational and technical capacity, thus the PCU and projectimplementers must be adequately staffed and trained. Adequate community participation may be achievedby:

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* Conducting a participatory social assessment (using participatory rural appraisal and beneficiaryassessment techniques) to capture baseline information and identify/prioritize needs and concerns of thecommunes in relation to project objectives

* Fostering systematic participation of the local population during project implementation, including ifpossible labor based works for reconstruction, monitoring and evaluation, and in-kind contributions(suggested materials or labor since finances are scarce).

Moreover, the Association of Disaster Victims of Ain Temouchent is part of the commission selectingbeneficiaries of the housing supported by the project. Also, a representative of the Association willparticipate in the CICS which has an overview of the project and provides general guidance to TEERPimplementation.

Findings from the social assessments should be reviewed with the community (including beneficiaries, civilsociety representatives, and local admirnistration) to validate results and ensure that consultation and surveyresults were interpreted correctly.

6.3 How does the project involve consultations or collaboration with NGOs or other civil societyorganizations?

At the initiative of the regional government an initial social assessment was conducted shortly after theearthquake. The results of this survey identified the key beneficiaries and allowed structuring of the projectto meet their needs, taking into account affordability concems, especially for the housing component. Toassure proper attention to social issues, a social scientist will be hired by the PCU. She/he will beresponsible for organizing public consultations and to assure that the findings of those are taken intoaccount. The social scientist will also conduct social monitoring for the project following the socialindicators.

During its implementation phase, the project will consult with local civil society organizations. Also,periodical assessment will be carried out, wherever possible, by non-govenmmental organizations.

6.4 What institutional arrangements have been provided to ensure the project achieves its socialdevelopment outcomes?

The project will support training for the PCU, related to the social aspects of the disaster recovery andproject implementation. Periodical field assessment will be conducted in accordance with recomnmendationsprovided during the project preparation and included in the Social Assessment. At the completion of theproject, a social evaluation will be performed by the independent external consultants.

6.5 How will the project monitor performance in terms of social development outcomes?

During project implementation, the PCU should regularly visit the community to monitor and evaluatecommunity participation. Based on baseline information gathered in the initial social assessment, the PCUshould: (i) establish regular consultations with stakeholders during implementation to gain their insight onprogress and what should be indicators; (ii) review the community's in-kind contributions and identifyrelated problems; (iii) assist in the solution of problems encountered; and (iv) gain local perceptions on thedevelopmental impacts of the projects and potential improvements to existing structure. Each monitoringvisit should last 1-2 days, with each site being monitored 2-3 times during implementation if time pernits.There should be a standard form to report fndings from each of the participatory monitoring visits.

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A final evaluation exercise (social audit) should be undertaken, using participatory rural appraisal (PRA)and beneficiary assessment (BA) techniques (described in Annex 1 1A), as well as participant observation.The final evaluation should be based on issues raised during the initial social assessment and those used onmonitoring reporting forms. This final evaluation should be carried out independently of the PCU and ofany consultants who may have been involved earlier in the assessment and monitoring process.

7. Safeguard Policies:7.1 Do any of the following safe ard policies ap to the roect?

M Environmental Assessment (OP 4.01. BP 4.01. GP 4.01) | Yes El NoEl Natural habitats (OP 4.04. BP 4.04, GP 4.04) OL Yes 1 NoEl Forestry (OP 4.36. GP 4.36) Ll Yes 1 NoEl Pest Management (OP 4.09) OL Yes 1 NoEl Cultural Propertty OPN 11.03) El Yes M NoEl Indigenous Peoples (OD 4.20) El Yes X NoEl Involuntary Resettlement (OD 4.30) El Yes N NoEl Safety of Dams (OP 4.37. BP 4.37) L Yes 1 NoEl Projects in International Waters (OP 7.50. BP 7.50. GP 7.50 El Yes 1 NoLI Projects in Disputed Areas (OP 7.60. BP 7.60. GP 7.60) El Yes 1 No

7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies.

A Land Acquisition Assessment (LAA) will be conducted. No involuntary resettlement is to take placeunder the project.

The Environment Management Plan (EMP) has been prepared and agreed upon with the client. In order toensure compliance with the environmental standards, the PCU will have an Environmental Specialist as astaff member who will review and provide environmental clearance for project activities as required.

F. Sustainability and Risks

1. Sustainability:

Factors critical to the sustainability of the project include strong motivation on the part of national, regionaland local governments to quickly implement earthquake recovery and risk reduction measures which willprotect public health and safety and limit future economic losses. The improved enforcement of qualitystandards and the support for enforcement of building codes will contribute to project sustainability.

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

Risk k -- tn From Outputs to ObjectiveComponent A: Government will decline S Involvement of Minister of Interior on CICS willto fund operations and maintenance of the assure that funding is provided from that budget.disaster response system.Components B, C, D: New construction M New construction will be earthquake-resistantmay be damaged by a later earthquake. according to intemational standards.

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Components B, C, D: New construction M Building codes and disaster response system willmay be damaged by other disasters. make the investment more sustainable in case of

unforeseen disasters.

From Components to OutputsComponents B,C,D: Building materials M Government will ensure supply of proper qualitynot available construction materials.Component B: Suitable sites for M The Government has identified an initial set ofconstruction are not provided. potential sites already designated for urban

housing.Components B,C,D: Required scale of M The size of contract packages was developed inconstruction is beyond the capacity of consistency with capacity of local constructionbidding firms. firns.

Overall Risk Rating M

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

3. Possible Controversial Aspects:

Efficient management of operations and maintenance of the newly constructed buildings is mandatoryunder this project in order to ensure the sustainability of the investments. This requires that an appropriatelevel of maintenance be established and financed. Based on the average unit cost US$13,750 per unit, theannual cost of maintenance is estimated at US$300 in the first few years after construction (rising toUS$700 beyond year 10). This cost is about DA 1750/month, which is consistent with the Government'sproposed rent level of DA 2100 on average. For families of income DA 10,000/month/family, the cost ofmaintenance in the early years would then be about 17.5% of family income, and the overall rental levelwhich would finance maintenance would be affordable. However, for families with incomes below DA10,000/month, the rental level which would finance maintenance may be unaffordable. The Governmentwill assure that maintenance is funded at the needed level, covering the shortfall for those families unable topay rent at the proposed level.

The proposed arrangement should not interfere with overall changes in rental policies and major policyreforms in the housing sector, which the Government of Algeria has undertaken and which the Bank hasaddressed in a housing sector project now under preparation.

G. Main Loan Conditions

1. Effectiveness Condition

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

Dated covenants:

* The Borrower shall, not later than July 31, 2000, establish and thereafter maintain, the PCU.* The Borrower shall cause BAD, not later than July 31, 2000, to designate a representative to be part of

the PCU staff in the Wilaya of Ain Temouchent.* The Borrower shall, not later than July 31, 2000 select potential sites in size and location satisfactory

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to the Bank for the purposes of carrying out of Parts B2, B3, Cl, Dl, D2 and D3 of the Project.* The Borrower shall review a progress report with the Bank, by January 1, 2001 or later as the Bank

may request, and thereafter take all measures required to ensure the efficient completion of the Projectbased on the conclusions and recommendations of the report and the Bank's views on the matter.

H. Readiness for Implementation

El 1. a) The engineering design documents for the first year's activities are complete and ready for the startof project implementation.

0 1. b) Not applicable.

D 2. The procurement documents for the first year's activities are complete and ready for the start ofproject implementation.

Z 3. The Project Implementation Plan has been appraised and found to be realistic and of satisfactoryquality.

L 4. The following items are lacking and are discussed under loan conditions (Section G):

1. Compliance with Bank Policies

X 1. This project complies with all applicable Bank policies.DI 2. The following exceptions to Bank policies are recommended for approval. The project complies with

all other applicable Bank policies.

Piotr M. Wilcude Villiard Christian DelvoieTeam Leader Sector Manager/Director Coun nager/Director

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Annex 1: Project Design SummaryALGERIA: Ain Temouchent Emergency Earthquake Recovery Project

g~~~~~~~1s _ i*wmm.#,.Sector-related CAS Goal: Sector Indicators: Sector/ country reports: (from Goal to Bank Mission)To protect the poor during * Availability of * National statistics Availability of safe water andAlgeria's transition to a permanent housing and * Country reports shelter will support humanmarket economy safe water in the Wilaya * Housing sector studies development and alleviate

of Ain Temouchent poverty.

* Preparedness of theGovernment in futureemergencies to protectthe living conditions oflow-income families

Project Development Outcome / Impact Project reports: (from Objective to Goal)Objective: Indicators:

* To restore normal 0 Families displaced by * PCU quarterly reports * Housing under thisfunctioning of the earthquake move * Supervision mission project will increase thecommunities into permanent reports supply available todamaged by the housing * Project evaluation low-income families inDecember 22, 1999 * Replacements for the long term.earthquake in the technical infrastructure * Housing andWilaya of Ain (water systems, infrastructureTemouchent sewerage, etc.) constructed under this

destroyed by project will beearthquake are in use maintained in the long

* Replacements for term.social infrastructuredestroyed byearthquake are in use

* To increase national * The Government's * The Government willpreparedness for future emergency system is devote sufficient budgetdisasters strengthened. to maintain the disaster

response system at aneffective level.

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Output from each Output Indicators: Project reports: (from Outputs to Objective)component:A. The Govermment's disaster * Update of national * PCU quarterly reports. * The Government willresponse system was upgraded earthquake risk * Supervision mission fund operations andto handle future emergencies. assessment carried out. reports maintenance of the

* Assessment of national * Project evaluation disaster responseemergency system system.carried out.

* Recommendedequipment procured.

* Recommended trainingprovided.

* System tested.B. Low-income housing units * 3400 new social rental * PCU quarterly reports. * Families find the newdestroyed in the earthquake units constructed * Supervision mission housing preferable towere replaced. * 800 new individual reports tent camps and

non-grouped units * Project evaluation acceptable for the longconstructed term.

* Newly built units are notdestroyed in laterearthquake or otherdisaster.

C. Technical infrastructure * Technical infrastructure * PCU quarterly reports. * Municipalities take ondestroyed in the earthquake destroyed in the * Supervision mission responsibility to operatewas replaced. earthquake is identified. reports and maintain the

* Reconstructed * Project evaluation reconstructed technicalinfrastructure is infrastructure.designed and the design * Reconstructedmeets govermment's infrastructure notstandards and the new destroyed in laterbuilding code. earthquake or other

* Reconstructed disaster.infrastructure is built.

D. Social infrastructure * Social infrastructure * PCU quarterly reports * Govemments re-opendestroyed in the earthquake destroyed in the * Supervision mission social facilities.was replaced. earthquake is identified. reports * New facilities not

* Reconstructed * Project evaluation destroyed in earthquakeinfrastructure is or other disaster.designed and the designmeets govermmenftsapplicable standards andthe new building code.

* Reconstruction of socialinfrastructure is carriedout.

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E7 A Project Coordination * PCU Director is * PCU quarterly reports * Project activitiesUnit supported project activity identified. * Supervision mission continue to receive'enabling rapid provision of * PCU staff are hired. reports strong support from allsustainable solutions. * PCU carries out * Project evaluation agencies and

identification of needed stakeholders.works.

* PCU carries outprocurement actions.

* PCU supervisesconstruction.

* PCU provides allrequired reports.

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Project Components / Inputs: (budget for each Project reports: (from Components toSub-components: component) Outputs)A. Upgrade disaster US$9.37 million * PCU quarterly reports * Government agenciesmanagement system, * Supervision mission will cooperate withespecially with regard to reports consultants in studiesearthquakes. * Annual audit reports and policy assessments

* Categories and degreesof emergency which willaffect Algeria in theplanning period can becorrectly estimated atreasonable cost

B. Construct about 4200 US$65.78 million * Adequate supply ofpermanent housing units in building materials isthe commnunities affected by availableearthquake destruction. * Suitable sites for

construction are madeavailable

C. Reconstruct essential US$8.39 million * Government provides itstechnical infrastructure share of financingdestroyed by earthquake. * Construction firms and

others bidding onproject contracts haveadequate capacity

D. Reconstruct essential US$26.78 million * Security situation doessocial infrastructure destroyed not interfere with projectby earthquake. activityE. Launch operations of a US$1.69 million * PCU retains support ofProject Coordination Unit. government agencies

and other stakeholdersnecessary to resolve landtitling, procurement,contracting, and otherissues speedily.

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Annex 2: Project DescriptionALGERIA: Ain Temouchent Emergency Earthquake Recovery Project

By Component:

Project Component I - US$9.37 millionComponent A: Disaster Organization and Risk Management

The component will finance:

* Acquisition of emergency response and search-and-rescue capacity in Algeria through the purchase ofspecialized equipment and training in the use and maintenance of the equipment;

* Construction of facilities in Ain Temouchent and Ain Tolba to support the operations of CivilProtection in the region;

* Assessment of Civil Protection's current voice and data communications capacities, development ofrecommendations for upgrades that build on current capabilities, enhancement of voice and datasystems, and development of detailed earthquake response plans based upon detailed planningscenarios;

3 Completion of a seismic risk assessment and microzonation for Ain Temouchent;3 Enhancement of the Algerian seismic monitoring network;3 Review of the current standards, practices, and institutional capacities in building code enforcement

and construction monitoring, including recommendations enhancing effectiveness;3 Assessment of the policy alternatives and feasibility of instituting a national earthquake insurance

program in Algeria based on a review of current international practices.

A detailed description of the activities follows:

A.1. Emergency Response and Rescue Equipment

International experience demonstrates that the emergency operations in the immediate aftermath of majorearthquakes are complex and require special capabilities and equipment. The project will support aprogram to enhance the operations of Algerian Civil Protection (including but not limited to search andrescue) through the purchase of specialized equipment as well as training in the use and maintenance of theequipment. Algerian Civil Protection will develop an equipment acquisitions report that details the strategicobjectives, functions, type, deployment and training requirements for the proposed equipment for review byinternational consultants.

A.2. Construction of Civil Protection Facilities in Ain Temouchent and Ain Tolba

The decentralized Algerian Civil Protection system depends on the capabilities found in each region,wilaya, municipality and settlement. The December 1999 earthquake destroyed the principal operationalfacility in Ain Temouchent, which provides emergency response coordination for the Wilaya and adjacentareas. In addition, the facility in the village of Ain Tolba was destroyed. The project will support the effortsof the Government of Algeria to construct two new facilities to meet the needs of Civil Protection in theregion.

A.3. Assessment of Communications, Data and Information Management Systems used by AlgerianCivil Protection

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The cornerstone of a rapid, coordinated and effective response to natural disasters is an effectivecommunications system -- voice and data (including Geographic Information Systems) -- that links themunicipal, regional and national levels of govermment. An effective system has redundancy, so that thefailure of a single cormponent will not destroy the network, and the capacity to handle the large volume ofinformation created following a natural disaster. The timely receipt, organization, analysis and display ofthis information guides the establishment of essential emergency response priorities and the deployment ofcritical resources to save lives and minimize property losses.

The current communications system used by Algerian Civil Protection, while remaining fullyfunctional during the Ain Temouchent earthquake, is highly dependent on telephones and fax machines anda network of microwave repeaters. There is minimal use of modern information management software andgeographic information systems.

In coordination with Civil Protection, the Project will support an assessment by internationalconsultants of current emergency communications, information management and decision support systemsin Algeria and the development of recommendations for priority equipment acquisitions.

A.4. Upgrading Communications, Information Management and Operational Systems for AlgerianCivil Protection

Based on the assessments and recommendations developed in A.3, the Project will support the acquisitionof upgraded communications and information management equipment and systems. Internationalexperience demonstrates that the effective use of this equipment by disaster response officials is greatlyenhanced by decision support systems that combine the use of information management programs withrealistic planning scenarios that provide a guide to potential losses and resource requirements. As part ofthe deployment of the enhanced communications, information management and decision support systems,the project will support the development by international consultants of an earthquake planning scenario foran Algerian metropolitan region that is considered to have significant seismic risk. This planning scenario isto serve as a guide in refining Algerian Civil Protection's management strategies for the emergencyresponse to a large-scale, major earthquake.

A.5. Seismic Risk Assessment and Microzonation for Ain Temouchent

As noted above, prior to the December 22 earthquake, the Ain Temouchent region was not considered anarea of significant seismic risk. Building codes placed the region in Zone 1, indicating low risk. In order tomore completely understand the seismic risk in this region, and inform the building code development andimplementation process, the Project will support technical assistance by international consultants todevelop a study of the Ain Temouchent region.

A.6. Seismic Monitoring Network Upgrades

A dense array of monitoring instruments is essential to understanding seismic risk and providing rapid,accurate data to Civil Protection in the immediate aftermath of earthquakes. Since 1980 the Government ofAlgeria has expanded its seismic monitoring system on a regular basis; the Center for GeophysicalResearch (CRAAG) maintains a telemetered seismographic network and the National Earthquake Centerfor Engineering Research (CGS) maintains a network of 210 accelerometers to measure strong groundmotion. Virtually all of the instruments are analog. The project will support enhancement of these networksand the purchase of digital instrunents based on priorities established by a joint committee of CRAAG,CGS and Civil Protection officials.

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A.7. Assessment of Current Practices in Building Code Enforcement

In Ain Temouchent and other areas of Algeria there are large numbers of residential and commercialbuilding projects underway. Effective management of the nation's seismic risk can only be achieved throughcareful monitoring of new construction to ensure adherence to the nation's building codes. The project willsupport the preparation by intemational consultants of a study of current practices and institutionalcapacities related to the enforcement of building codes. The study shall include recommendations forenhancing, as appr( .:ate, the capabilities of Algerian agencies and organizations in the training,monitoring and supervision of building code enforcement for both public and private construction.

A.8. Assessment of International Practices in Natural Hazards Insurance Programs

Though losses from the Ain Temouchent earthquake were moderate, the overall seismic risk in Algeriasuggests that large-magnitude earthquakes affecting one of the metropolitan areas would severely stress thenational government's re- arces. In addition, there is little residential or commercial earthquake coverage inAlgeria, and the insurance mechanism does not currently act as an incentive for individuals or businesses toundertake risk reduction measures. A recent trend among nations facing risk from large-scale naturaldisasters is to implement some form of earthquake insurance program to moderate strain on governmentaloperating budgets and to promote more effective risk reduction mechanisms. The project will support thepreparation by intemational consultants of a study of altemative public insurance strategies for managingrisk. This study is to include, but not necessarily be limited to, current programs in France, New Zealand,Germany, the United States (both federal and state), and Turkey. The study will include recommendationsof altemative strategies, including potential costs, benefits and barriers to implementation, for considerationby the Algerian Government. The study will include discussions of current models used in each country toestimate risk and determine insurance rates, discussions of strategies used in securing reinsurance or otherrisk transfer strategies, as well as recommendations of altemative strategies, including potential costs,benefits and barriers to implementation, for consideration by the Algerian government.

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Costs of Component A

Totals including Contingenciesby Financier

GovernmentTotal Bank of Algeria

I. Investment CostsA. Disaster Organization

1. Emergency Response and Rescue Equipment (Al) /a 2,532,863 2,000,962 531,9012. Construction of Civil Protection in Ain T. and Ain Tolba (A2) 2,214,500 1,904,470 310,0303. Data/Communications Assessment and Design (A3) 250,480 250,4804. Data/Communications Enhancement (A4) 2,268,294 1,791,953 476,342

Subtotal Disaster Organization 7,266,138 5,947,865 1,318,273B. Risk Management

1. Seismic Risk Assess. & Microzonation for Ain Tem. (A5) 350,470 350,4702. Seismic Monitoring System Enhancement (A6) 1,090,232 861,283 228,9493. Study of Bldg Code Enforcement Practices (A7) 151,500 - 151,5004. Assessment of Alternative Public Insurance Strategies (A8) 193,435 - 193,435

Subtotal Risk Management 1,785,637 1,211,753 573,884Total Investment Costs 9,051,775 7,159,618 1,892,157II. Recurrent Costs

A. Incremental Operating CostRemedial Search and Rescue Training 83,767 - 83,767

B. Incremental StaffCommunications Staff for Civil Protection 118,177 - 118,177Seismic Monitoring Staff at CRAGG 118,177 - 118,177

Subtotal Incremental Staff 236,354 - 236,354Total Recurrent Costs 320,121 - 320,121Total 9,371,895 7,159,618 2,212,278

\a Algerian Civil Protection is exempt of customs tax.

Project Component 2 - US$65.78 millionComponent B: Housing

Damage overview. The earthquake of December 22, 1999 affected four communities: Ain TemouchentSidi Ben Adda, Ain Tolba, and Ain Lalam. The majority of the damaged housing occurred in heavilypopulated areas, particularly in the town of Ain Temouchent which has a population of approximately65,000.

The main causes of structural damage were:

* The age of many buildings, in conjunction with the method of construction for older buildings whichused load-bearing, stone masonry walls. Cohesion of these walls failed, leading to the collapse orsevere damage of the structures;

* Inadequate design and construction methods in newer buildings. This resulted in loss of structuralintegrity in columns and column-beam connections, leading to collapse or severe damage;

* Lack of awareness and proper studies of geological and geo-technical conditions.

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Within a few days following the earthquake, the Government of Algeria conducted an assessment ofdamages. Depending upon the degree of damage, the housing units were classified as follows:

red category: Units completely destroyed - To be reconstructed.orange category: Units severely damaged - Secondary inspection required

to deternine whether each unit should be repaired ordemolished. Repairs would be justified up to 50 percentof a unit's replacement cost.

green category: Units lightly damaged - These would qualify for minorrepair.

The inspection teams assessed 3,470 buildings consisting of 6,940 housing units. hn total, 6,734 unitswere declared damaged, of which 2,708 were completely destroyed.

Overview of Damaged Housing Units

Community/ Heavily Medium Damage Light Damage SUmMunicipality Damaged (red) (orange) (green)

Ain Temouchent 1,350 1,080 933 3,363

Sidi Ben Adda 543 432 373 1,348

Ain Tolba 543 432 373 1,348

Ain Lalam 272 216 187 675

Total 2,708 2,160 1,866 6,734

Demand for ReconstructionThe above assessment refers to both single-family houses and multi-family buildings. However, most of thedamage occurred in two-story multi-family buildings located in the old town of Ain Temouchent.

The data provided by the Government of Algeria were reviewed and investigated by a team of nationalspecialists financed by the World Bank. The numbers provided by the Government of Algeria are generallyconsistent with those of the independent consultants.

The secondary assessment of the orange category determined that 1,306 units needs to be reconstructed andthat the remaining units could be repaired. In addition, it was found that about 10 percent of the unitsclassified as green need to be demolished because of their proximity to units which have either collapsed orwhich qualify for demolition.

Based on these findings, the total number of housing units to be reconstructed is estimated at 4,200, ofwhich 3,400 are social rental and 800 are individual non-grouped housing units.

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Demand for housing reconstruction

Category Category Category TotalRed Orange Green

Housing units to be reconstructed 2,708 1,306* 186* 4,200

Social Rental Housing 3,400

Individual Non-grouped Housing 800*

*based on a secondary assessment

Beneficiary selection criteria. Only housing units that have to be reconstructed will be financed under thisoperation. Families eligible for assistance will be determined according to the Ministry of Housing decisionwhich requires creation of a Commission under the supervision of the Wali, and consisting of: (i) electedrepresentatives to local government; (ii) the Director of OPGI (Office for the Real Estate Administration);(iii) The Director of DUC (Social Rental and Building Administration); and (iv) The President of theAssociation of Disaster Victims.

The procedures for beneficiary selection depend on two broad criteria: (a) demonstration that a family'shousing unit was totally or severely destroyed, and (b) demonstration of eligibility for social housing underthe Governnent's usual standards for social housing. These two criteria are applied in a process of up tothree steps. First, through a participatory approach, documentation provided by an applicant is reviewed toshow that the household resided in one of the units listed as having been damaged. The applicant mayprovide proof of ownership of such a unit, primary or secondary residence in such a unit according to theActe de Location, or the list of the Wilaya, voters' registration, the census taken in 1998, rent contracts,utility bills or other records. If documentary proof is acceptable, then a dossier characterizing need isreviewed according to an algorithm which assigns points to various characteristics, including employment,household members, etc. If a certain number of points (110) is exceeded, then, together with loss ofhousing in the earthquake, this establishes eligibility for a unit financed by the project. If an application isrejected by the municipality, for example in the case of lack of documentation of residence, then theapplicant may appeal to the Wali. If the Wali rejects the application, the applicant may appeal to thenational level. These detailed procedures will be adopted and incorporated in the Project ImplementationPlan.

The following principles apply to the project:

* Investment must be implemented under controlled and sound construction practices;* New construction must utilize appropriate, cost-effective design standards that protect against future

seismic risks;* Investment must comply with environmental and social standards;* Investment is to be implemented in a timely manner;* The Borrower is responsible for providing an update of the damage assessment and list of eligible

beneficiaries two weeks prior to distribution of bidding documents. Based on the update, the Bank willreview the total number of housing units to be constructed;

* Beneficiary records have to be filed at the PCU and presented to the Bank for review upon request.

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Component B1: DemolitionCosts associated with the demolition and the removal of debris is estimated at US$2.0 million. Demolitionand debris removal is eligible for retroactive financing under Bank rules. This subcomponent will becarried out on the basis of environmental good practices (see Environmental Management Plan, Annex 12).

Component B2: Social Rental Housing Reconstruction.This sub-component will finance reconstruction of housing units which have collapsed or cannot berepaired. In addition, units are eligible under this component if repair cost exceeds 50 percent ofreplacement cost. Based on the damage reports provided by the Government and the review by the team ofspecialists, approximately 3,400 social rental housing units will be financed under this operation.

Based on social assessment and the request from the Government it is estimated that 100% of housingreconstruction falls into the category of social rental housing targeting the most deprived low-incomefamilies. The project will finance all of these units on sites to be identified and provided by the Borrower.

The Government will be responsible for allocation of these units among the beneficiaries. Under the currentpolicy, low income families (monthly income up to 15,000 DA) are eligible for social rental units.

Housing space standards particularly fir low incomes are determined based on the following distribution offamily size:

Category Number of persons area in mFl 1-3 30F2 4-5 45F3 6+ 60

According to the results of the social survey, confimned by the independent World Bank consultants andGovernment of Algeria investigations, Fl, F2 and F3 units will be required to meet the space needs of theearthquake struck population. Based on the distribution of family sizes, the average unit size is estimated at50 m2.

The cost per housing unit will vary depending on unit size and the site location. Based on recentlycompleted projects in Ain Temouchent region and after adjusting for an added 5% seismic premium,average m2 cost is estimated at US$235. The Govemment representatives confirmed that this estimateincludes the cost of studies, design and supervision as well as taxes (7% for construction of social housing).Therefore, construction unit cost is approximately US$200 per m2, that is US$10,000 per unit on average.In addition, an estimated US$2,000 per unit (or US$40 per square meter) is allocated for on-site andpartially off-site infrastructure, including cost of taxes, studies, design and supervision. Excluding taxes,studies, design and supervision, the average cost per m2 of infrastructure is US$33. The table belowaggregates the cost of studies, design and supervision for construction and infrastructure. It nextaggregates taxes for construction and infrastructure. Excluding the cost of land, the total cost forreconstruction of a housing unit is calculated at US$13,750.

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Construction Cost, Including Off-Site Infrastructure, Per m2 and PerUnit

Item Cost per Cost perM2 50 m2 unitUS$ US$

(A) Construction cost 200 10,000

(B) Infrastructure 33 1,650

Design, supervision at 11% 24 1,200= (A+B)* 11%

Taxes at 7% 18 900=(A+B)*7%

Total 275 13,750* Excluding cost of land,physical and price contingencies.

Based on the damage assessment, it can be estimated that 59% of those units will be reconstructed in AinTemouchent, 20% in Sidi Ben Adda, 18% in Ain Tolba and 3% in Ain Lalam.

Construction Cost for Reconstruction of Social Rental Housing Units

Community/ Social rental Cost per Unit Total cost*Municipality housing

Number of units US$ US$

Ain Temouchent 2,014 11,650 23,463,100

Sidi Ben Adda 682 11,650 7,945,300

Ain Tolba 602 11,650 7,013,300

Ain Lalam 102 11,650 1,188,300

Total 3,400 39,610,000*Excluding design and supervision(included in Component B4), taxes,cost of land, physical and pricecontingencies.

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Construction of up to 1000 units of housing is eligible for retroactive financing under the project. Housesunder construction will be reviewed by an independent engineering company to assure compliance withAlgeria's para-seismic standards as adopted by the Government in 1999. Retroactive financing will applyonly after the Bank's review of the stated audit and the Bank's no-objection to a finding of satisfactory tosuch a review.

Maintenance of rental units

A number of reforms are underway with regard to management and cost recovery in the rental sector. Forthe units under public management, a number of changes have been introduced. First, the right topermanent occupation has been suppressed for new entrants, who now have three year renewable leasecontracts. Second, gradual increases in the level of rent continue. The Government has implemented fiveincreases in rent since 1998. A further rent increase is being implemented at present, to DA1,200 for a oneroom unit, DA1,800 for a two room, and DA3,000 for a three room unit. Current monthly rentals amountto 1,000 DA on average, which is 10 % of the average income of the occupants. The collection rate hasimproved with the use of rent collectors from 29% to 52%.

The Government of Algeria is fully aware of the need for broader reforms in rent levels. The rent levels arefar from adequate to cover even current costs. Based on the average unit cost of US$13,750, the annualmaintenance cost (estimated at 2% of the value of the investment in initial years) would be approximatelyUS$300 during the first years of the project. This cost would amount to at least 1750 DA/monthlfamily.Taling into consideration amortization of the housing investment, the level of rent which would ensureproper maintenance as well as amortization of the investment would represent on average more than 50%of the income of the Project's eligible beneficiaries. Therefore, it was decided with the Government thatOPGI will be subsidized in order to ensure proper maintenance for a period of four years.

Site Selection. The Borrower will be responsible for providing land with all necessary legal requirements inplace for residential housing development as potential sites for new pernanent housing construction. TheGovernment of Algeria has identified several potential housing development sites and provided the Bankwith the list. Detailed Terms of Reference for the final selection of sites will be developed by the Borrowerand approved by the Bank. The Terms of Reference will address the following considerations in full.

A. Urban/Regional Planning. The sites of the destroyed housing units are generally not ideal for thereconstruction process due to the complexity of land ownership patterns. Rebuilding in situ would requirescattered construction processes that would significantly increase the complexity of the constructionprocess and therefore cause delay and raise costs.

Selection of new sites must meet planning criteria that would minimize social and economic dislocation.The new sites must be suitable for long-term community building and go beyond the more limited criteriathat would apply to strictly emergency housing. The cost-effectiveness of new construction should also bean important factor in selection of new sites. These criteria should include: a) proximity to existinginfrastructure, social facilities, transportation and employment opportunities; b) housing standards that areappropriate for lower-middle class families; c) recognition of nearby housing capacity (capacity existing,planned, or under construction); and d) consideration of existing structural and land-use plans.

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B. Social/lEnvironmental Issues. The Bank's environmental and social requirements, together with locallaws and regulations, to be taken into account for the proposed sites are as follows:

* Existing patterns of population and settlement;* Existing land use, de facto and regulated, such as protected heritage or natural resource sites,

watershed or conservation areas;* Client consultation.

C. Geo-Technical Investigation. Each proposed site will be investigated by a geo-technicalconsultant/expert to determine seismic and other conditions that may either eliminate the site or requirespecial structural/foundation design. A geo-technical expert will establish Terms of Reference, and theabove evaluation will be a prior condition for final site selection approval and for the procurement of designservices. The geo-technical investigation will further identify sites where geological conditions wouldrequire special structural design, recommend suitable structural systems, and provide preliminary costestimates.

D. Infrastructure. Complete, up-to-date infrastructure based on local standards will be required for thenew sites.

The proposed sites will take into consideration proximity to existing, functioning infrastructure networks tominimize off-site infrastructure investment. The cost of necessary off-site infrastructure will be part of thedevelopment cost for each site and is estimated at US$2,000 per housing unit.

Site Planning and Building Design. 3,400 new housing units need to be constructed. These units will belocated in all four areas affected by the earthquake. The density of construction will depend on local andnational government preferences and availability as well as site characteristics.

A. Site Planning. Standards established by DUC and OPGI will guide the site planning process, focusingon beneficiary participation in site design and planning. The Bank will review site layouts, planningcriteria, and methods to ensure beneficiary consultation.

B. Building Design. The building design process will include beneficiary consultations.Based on similar design practices in the area (for example, the residential development of Hai Zeitoune inthe Ain Temouchent district) building heights should not exceed five stories. This simplifies structuralrequirements, optimizes costs, and is in line with population expectations. The structural design will followvery strict anti-seismic requirements.

It is preferable that whenever possible, more traditional construction methods be used, requiring intensiveuse of the local labor force in order to ease the hardships of the earthquake-affected population.

Despite the possibility of a slight increase in cost, the building design will seek to introduce variety in bothapartment architecture and urban design massing in order to allow for aesthetic diversity essential to futureeconomic and social sustainability.

Component B3: Individual Non-grouped Housing Reconstruction.The sub-component will finance the re-construction of individual non-grouped housing units. Thebeneficiaries under the supervision of independent consultants will undertake the construction activities. Inaddition, construction training will be provided through which the beneficiaries will gain qualification andexperience in seismic-resistant construction. Strict geo-technical and structural requirements will be applied

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to each site and to each housing unit. The beneficiaries will purchase materials according to technicalspecifications. No modifications will be made to the standard designs, and no materials may be used thatdo not have prior approval from the PCU.

Payments to beneficiaries will be made in increments. The first advance payment will be made only afterevidence of clear title to the land is provided by the beneficiaries. The remaining payments will be made instages as approved by the PCU.

Approximately 800 housing units are estimated to be eligible for reconstruction. The average size of aprojected individual non-grouped housing unit is 50 m2 and average cost per m2 is estimated atapproximately US$ 180, which includes house connection but excludes the cost of land and off-siteinfrastructure. Thus, the reconstruction of an average individual non-grouped unit is calculated atUS$9,000, equivalent to DA 630,000.

As in social rental areas, the component will provide a subsidy scheme for individual non-grouped familiesbased on the income distribution. The grants can only be used for purchasing construction materials.

Family Income Yearly Grant for materials(FI) Income (YI) DA

DA

FI< 2SNMG* YI< 144,000 350,000

* SNMG stands for the minimal wage, which in1999 was DA 6,000 per month

The sweat contribution of the beneficiaries is estimated at 44 percent of the total reconstruction cost. Incase of the low-income beneficiaries, the grant for materials is sufficient to finance 56 percent of the totalre-construction cost.

Income Grant Beneficiary Beneficiary TotalGroup for Sweat Contribution Financial DA

Materials DA ContributionDA DA

I 350,000 280,000 0 630,00056% 44% 0% 100%

Based on Social Assessment and following the policy of the Govermment of Algeria it is estimated at thistime that 100% of beneficiaries will fall into income group I. It is agreed that this sub-component will befinanced by the Government of Algeria.Taking the above into account, the cost for the individual non-grouped housing sub-component is estimatedat US$7.2 Million.

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Component B4: Consultant Services for Design, Site Investigation,Soil Investigations and Supervision.

Design offices as well as independent consultants will be required to prepare site plans, carry outgeo-technical soil studies and site investigations, undertake architectural and structural design andsupervise apartment building construction during implementation of social rental housing reconstruction.For individual non-grouped housing reconstruction, consultants will prepare standard designs and providetraining, construction management and supervision. In addition, consultants will ensure that specifiedmaterials are purchased and used, construction is supervised, and payments are approved according toprogress in construction.

Estimated Cost for Consultant Services

Consultant Services Site selection, survey building design Supervision TOTAL

(US$)

(US$) (US$)

Social Rental Housing 2,050,000 2,050,000 4,100,000

Individual Non-grouped 300,000 500,000 800,000Housing

Total 2,350,000 2,550,000 4,900,000

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Costs of Component B

Total including ContingenciesBy Financier

GovernmentTotal Bank of Algeria Beneficiaries

I. Investment CostsA. Demolition and Debris Disposal /a 2,000,000 1,600,000 400,000B. Social Rental Housing Reconstruction

Ain Temouchent 27,345,784 23,462,683 3,883,101Sidi Ben Adda 9,260,092 7,945,159 1,314,933Ain Tolba 8,173,864 7,013,175 1,160,689Ain Lalam 1,384,940 1,188,279 196,662

Subtotal Social Rental Housing Reconstruction 46,164,681 39,609,296 6,555,385C. Individual Non-Grouped Housing Reconstruction 7,935,506 - 3,967,753 3,967,753D. Site Selection, Survey, Design and Supervision

1. Social Rental Housing Related 5,439,760 4,099,947 1,339,813 -2. Individual Housing Related 1,061,417 799,990 261,427

Subtotal Site Selection, Survey, Design andSupervision 6,501,176 4,899,936 1,601,240 -

Total Investment Costs 62,601,363 46,109,233 12,524,377 3,967,753II. Recurrent Costs

A. Housing Maintenance 3,177,548 - 3,177,548 -

Total Recurrent Costs 3,177,548 - 3,177,548 -

Total 65,778,911 46,109,233 15,701,926 3,967,753

\a Eligible for retroactive financing.

Project Component 3 - USS 8.39 millionComponent C: Technical Infrastructure

Objective. The objective of this component is to restore essential infrastructure in the area affected by theDecember 22, 1999 earthquake. The component includes design, supervision and reconstruction ofinfrastructure: water supply systems, sewerage systems and wastewater treatment plants (includingconstruction of a new one for Ain Temouchent), roads and sidewalks. The reconstruction of these facilitiesshall be made in accordance with the current standards prevailing in Algeria, incorporatingrecommendations of the engineering consultants who will supervise the designs and construction of thefacilities under contract with the PCU. Experts will also determine the need for assistance to localcommunities in procurement, design, construction, supervision and various field surveys required to assurecompliance with quality standards and regulations.

The component does not include financing of power distribution and telecommunication systems, sincemajor damages to these sectors were not reported.

Specific required investments have been identified by the representatives of municipal and provincialgovernments in the province as having the highest priority based upon local needs. Technical and cost datafor each investment have been prepared by the Algerian authorities and verified by outside independentconsultants working with the local authorities and the Bank.

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Component Cl: Municipal Water and Wastewater Systems.

Following the earthquake, the City of Ain Temouchent and several adjoining localities, including the townsof Sidi Ben Adda, Ain Tolba, and Ain El Allem have been without a reliable drinking water supply. Themain water conveyance line which delivers water from a 40,000m3 reservoir was ruptured. The pipelinecrosses a major fault line along which the earthquake occurred. Other pipelines (Alirnentation d'EauPotable, or AEP) were also damaged as were some 12 water well installations which need to be tested andrehabilitated.

Additionally, four concrete water pressure storage tanks near Sidi Ben Adda and Ain Tolba were damaged(two severely), and need to be repaired or replaced. All are of reinforced concrete. Two have 100m3

capacity; one has 1501rn; one has 250mr. It should be noted here that the type of construction used for thesetanks (reportedly built during colonial times) makes them inherently susceptible to damage duringearthquakes; and repairing them is unlikely to ensure their structural integrity during future seismic events.

The damages sustained, still under assessment, appear to be serious enough to render support forconsideration of replacing the tanks with modern steel or reinforced concrete tanks designed to resistdaamage during more severe earthquakes. The decision as to which type of tanks should be built to replacethe existing ones, should be based on economic analysis taking into account installation and maintenancecosts, estimated tank life, and resistance to earthquakes.

A drinking water supply system which would function during a natural catastrophe such as an earthquakecould prevent many water-related problems which contribute to additional devastation and humansuffering. Consequently, the improvement of the structural safety of the entire water supply and distributionsystem in the Wilaya should become a high priority item on the road to full recovery.

Additionally, it is indicated that an engineering dam safety review of the main water storage reservoir nearAin Temouchent needs to be undertaken to ensure that this structure did not sustain any significant damageduring the earthquake, and is capable of withstanding any future ones.

According to the data provided by the local authorities, there was some damage to sewer lines within AinTemouchent and other affected communities. These lines will have to be repaired and/or replaced.

The part of the city of Ain Temouchent where most of the household units are going to be built is notserviced by a wastewater treatment plant (WWTP). The existing WWTP is located on the other side of thecity and has a limited capacity of 15,000 eq. inhabitants. The Bank recognizes the necessity of providingappropriate sanitation to the beneficiaries of the housing component but also to neighboring population, andconsequently recommends that the necessary financing for this facility be included in the current loanpackage. A pre-feasibility study will first be conducted in order to assess the appropriate technology fromthe point of view of cost-effectiveness, operations and maintenance.

The idea of constructing the plant as part of emergency infrastructure restoration was discussed andapproved by the Ministry of Hydraulics which had developed a preliminary technological design for it. Theplant construction cost was estimated by this government agency at US$ 2A million. This cost appears lowin western standards for a conventional secondary wastewater plant of this size, however the design basedon "modular" simple biological system and exclusion of the purchase of the land (to be provided by the

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Wilaya) that often represents 30 to 40% of the operation would significantly reduce the total cost of theabove investment. At this stage there is no rational reason to arbitrarily increase the above estimated cost.It is recommended that independent experts evaluate proposed design and cost estimate.

The table below summarizes the estimated investment costs for reconstruction of the water and wastewaterinfrastructure within the Wilaya of Ain Temouchent. The estimates are based on the information furnishedby the Wilaya's offices and by the independent consultants under contract to the Bank. Additional US$300,000 is allocated for dam/water reservoir study.

Rehabilitation of Water and Wastewater Systems

Tasks Estimated Costin US$ million *

Reconstruction of water lines, 2.2including rebuilding of storagetanks

Construction of new 2.4wastewater treatrnentplantlsewer lines

Inspection and repair of 0.2distribution lines and waterwells

Total 4.8* excluding taxes and contingencies

Component C2: National, Regional and Local Roads.

A total of about 45 km of roads need to be repaired or partly reconstructed. This includes the rehabilitationof the national roads RN2, RN35 and RN96, the Wilaya Road CW10, and the rural road CR leading toAin Alem. An estimate of the investment cost -- US$1,2 million -- was provided to the Bank's mission forthese repairs, which would include engineering, demolishing sections of the existing roads, excavation andbackfill, new road base, culverts and erosion protection work, asphalting, traffic control works, andsupervision of construction. The proposed expenditures for specific key items are summarized in the tablebelow:

Road reconstruction

Tasks Estimated Cost in US$ million *

Repair of RN2, RN35, RN96 0.7

Repair of local Wilaya Road CW1O 0.3

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Repair of rural road 0.1

Total 1.1* excluding taxes and contingencies

The above estimate is for the repairs of road damages sustained during the earthquake; costs for roadimprovements which go beyond their pre-earthquake condition, are not included.

Component C3: Consultant Services for Design, Site Investigation,Soil Investigations and Supervision.

Design offices as well as independent consultants will be required to carry out geo-technical soil studies,laboratory tests and site investigations, undertake engineering and structural design and superviseconstruction during implementation. Estimated costs of these services are shown in the table below andrepresent approximately 10% of the cost of investments with 5% towards studies and design and 5% forsupervision. Additional US$ 300,000 is allocated for dam/water reservoir study.

Estimated Cost for Consultant Services

Services Site investigation, survey Supervision TOTALengineering and design (in US$)

Rehabilitation of Water and 250,000 250,000 500,000Wastewater Systems

Road Reconstruction 50,000 50,000 100,000

Dam/Reservoir Safety Study 300,000 300,000

Total 600,000 300,000 900,000

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Costs of Component CTotals Including ContingenciesBy Financier

Total Bank Govemment

I. Investment CostsA. Municipal Water Supply and Wastewater Systems

Reconstruct water lines & rebuild storage tanks 2,665,531 2,179,338 486,193Constructon of new wastewater treatment plant/sewer lines 2,962,382 2,422,044 540,338Inspection and repair of distrbution lines and water wells 242,321 198,122 44,199

Subtotal Municipal Water Supply and Wastewater Systems 5,870,234 4,799,504 1,070,731B. National, Regional and Local Roads

Repair of RN2,RN35,RN96 858,727 702,095 156,632Repair of Local Wilaya Road CW10 368,026 300,898 67,128Repair of rural road 122,675 100,299 22,376

Subtotal National, Regional and Local Roads 1,349,428 1,103,292 246,136C. Studies, Designs and Supervision

1. Water and Wastewater RelatedSite investig., Survey and Design & Dam Safety Study 714,649 549,994 164,655Supervision 324,840 249,997 74,843

Subtotal Water and Wastewater Related 1,039,489 799,991 239,4982. Road Reconstruction Related

Site Investig., Survey and Design 64,968 49,999 14,969Supervision 64,968 49,999 14,969

Subtotal Road Reconstruction Related 129,936 99,999 29,937Subtotal Studies, Designs and Supervision 1,169,425 899,990 269,436

Total 8,389,087 6,802,785 1,586,302

Project Component 4 - US$26.78 millionComponent D: Social Infrastructure

Objective. The principal objective of this component is to assist and provide financing for thereconstruction of public buildings which provide normal social services and include schools, hospitals,recreation centers, local and central government offices. Restoration of such facilities is essential tobringing back a sense of stability and normality to the community, and restoring confidence in thegovernment's ability to deal with public catastrophes.

The Government of Algeria conducted an assessment of darnages and the data were reviewed andinvestigated by a team of national specialists financed by the World Bank.

Component DI: Education.

Of the 39 school buildings located within the Wilaya Ain Temouchent, 12 were heavily damaged and willhave to be reconstructed. The largest of these schools was Lycee Bachir Ibrahimi in Ain Temouchent whichhad about 1340 students. This school was devastated and will have to be completely reconstructed. Theearthquake also effectively damaged four others which will require major repairs.

The schools damaged or destroyed by the earthquake were built during different periods, using a variety ofconstruction techniques and materials. Consequently, in order to ensure that the reconstruction costestimates are realistic, the estimates must reflect differences in the type of construction.

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The building construction varied from the old colonial period type of brick and stone masonry reinforced bysteel girders, to a more modem construction of reinforced concrete beamns and column frames with slabs.Both types of buildings suffered severe damage, due to inappropriate designs such as inadequatereinforcement ofjoint connections, weak foundations, and/or poor quality-control of building materials.

It is thus of paramount importance to ensure that the reconstruction of these buildings is carried out inaccordance with appropriate seismic codes and is supervised by qualified engineering consultants andexperienced contractors. The siting of each school should be investigated from a geo-technical point of viewto avoid geologic and soil conditions unfavorable to seismic stability as well as from an environmentalpoint of view (see EMP, Annex 12). In many instances, these considerations may require relocation of aschool from its current site. A new site may have to be supplied with additional infrastructure which mayincrease overall reconstruction cost. Therefore, any final site selection should be based on an analysis ofsite-specific requirements and their impacts on cost. The necessary infrastructure included in unit cost perm2 was estimated to be 10% of construction cost.

The table below presents a list of schools which will have to be rebuilt, and provides the estimated capitalcost investment for the reconstruction of each facility.

Construction Cost for School Reconstruction

Name of the school Number of Area m2 Unit Cost Estimated Cost instudents $/M2* US$

Primary schools: 1st and (2.5m2/2nd cycle student)

Mouloud Feraoun 331 830 320 265,600

El Ghazali 393 1000 320 320,000

Marie Curie 356 900 320 288,000

Larbi Fekhar 182 455 320 145,600

Ibn Badiss 228 500 320 160,000

Taleb Abderahmane 281 700 320 224,000

Bekhit el Hadj 625 1600 320 512,000

Ibn Badiss (Ain Tolba) 430 1100 320 352,000

Tahar Ahmed 363 900 320 288,000

Subtotal 2,555,200

Middle schools: 3rd cycle (5m2/student)

CEM 17 Octobre 545 2725 360 981,000

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CEM Max Marchand 453 2265 360 815,000

Subtotal. 1,796,000

Secondary schools (5m2/student)

Lycee B. El Ibrahim * 1500 7500 450 3,375,000

TOTAL 7,726,200* Construction costexcluding cost for:design, supervision,taxes, contingenciesand land

The unit costs per square meter shown above were based upon an examination of common practices andcomparison with similar school construction projects. It has been assumed that each school would bereconstructed approximately to its pre-earthquake size taking however into consideration local normsregarding the necessary per student area. The estimates were developed by the consultants financed by theBank and confirmed with local authorities during the appraisal mission.

Based upon the consultants' evaluation, all of the above schools will, in all probability, have to becompletely rebuilt. A more detailed engineering inspection will be conducted during the implementationprocess.

The remaining schools that were damaged, but can be repaired in the consultants' judgement, are not listedhere and their repair costs are to be covered by the Government.

Reconstruction of primary schools is eligible for retroactive financing.

Component D2: Health

The earthquake also destroyed or damaged numerous regional health facilities. Eight small health centerswere severely damaged and three partially damaged. Some of these were very old and will need to becompletely rebuilt (see the table below) to new standards. Of special concern is the main hospital in AinTemouchent. this hospital, more than 100 years old, was severely damaged: three pavilions collapsed andseveral others were severely damaged. The remaining buildings are in high risk in case of anotherearthquake. The Government has requested that a 240-bed hospital be built to partially replace the oldhospital.

The unit cost per m2 of health facilities was estimated based upon examination of similar constructionprojects by the consultants working with the Bank and confirmed with local authorities during the appraisalmission. The infrastructure included in unit prices was estimated to be 20% of construction cost for thehospital and 10% of construction cost for smaller health centers.

Construction Cost for Health Facility Reconstruction(excluding the cost of design, supervision, equipment, taxes, contingencies, and land)

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Name of Health Facility Type Area M2 Unit Cost Estimated cost/rn2 (US$)

Ain Temouchent Hospital 10250 600 6,150,000

Meghni Sendid Health Clinic 100 400 40,000

Sidi Said Health Clinic 300 400 120,000

Sidi Ben Adda Health Clinic 180 400 72,000

Cheouilef Salah Nursing Center 200 400 80,000

Amour Ahmed Health Clinic 400 400 160,000

6,622,000Total

The equipment cost for all health facilities was estimated at US$4,485,000 with US$4,285,000 for theequipment for the Hospital in Ain Temouchent and US$200,000 for smaller health centers.

Component D3: Public Buildings

Three public buildings were seriously damaged and fourteen others will require major repairs. Thiscomponent does not include financing for the restoration of two official residences.

The most damaged administrative public building, for which financing will be made available, is the CourtBuilding at Ain Temouchent, which will need a complete reconstruction. Post office buildings in Sidi BenAdda and Ain Tolba sustained damage which can be repaired. However, the regional art center at AinTemouchent was heavily damaged. Damage estimates for the public buildings were made by the Bankconsultants and are as follows:

Total Cost for Reconstruction of Public Buildings and Facilities

Namne of the building Location Estimated cost (USDmillion)

Folk Art Center Ain Temouchent 0.120

Main Post Office Ain Temouchent 0.360

Court House Ain Temouchent 0.400

Total 0.880

Site Selection and Geo-Technical Investigations

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The rebuilding of public facilities destroyed by the earthquake will require a careful engineering analysisof the causes of such destruction - which may lead to the conclusion that a given facility may have to berelocated. In such cases, it shall be the responsibility of the Borrower to identify and designate state orlocal public land suitable for siting the new facilities. Such sites will be investigated to identify specificgeo-technical conditions, and the resulting engineering design criteria. The investigations will focus on:

* defining geologic and soil site conditions;* defining, where appropriate, environmental requirements or mitigating

measures;* providing cost estimates for foundations and structure(s);* estimating costs of additional infrastructure requirements (utilities, access roads etc. not available at

the new site;* comparing the overall cost of relocation with the estimated cost of the same facility seismically

reinforced at its original site (in some situations such a comparison may not be possible due tounacceptable geo-technical conditions).

The final decision as to where a given public facility is to be located should also take into considerationhow critical this facility becomes in the event of a public disaster; for example, a functioning hospitalwould be certainly more important than a recreational facility.

Notwithstanding the above, the reconstruction of all public facilities must adhere to modem building designcodes, follow proven construction practices in seismically-prone regions, and ensure the use of thespecified quality of construction materials. The fact that serious damages occurred to both buildingsconstructed in 1950s and before, as well as to those built as recently as the late 1980s, indicates that theseguidelines were not being followed.

Component D4: Consultant Services for Design, Site Investigation,Soil Investigations and Supervision.

Design offices as well as independent consultants will be required to carry out geo-technical soil studies,laboratory tests and site investigations, undertake architectural and structural design and superviseconstruction during implementation. Estimated costs of these services are shown in the table below andrepresent approximately 12% of the cost of investments with 6% towards studies and design and 6% forsupervision.

Estimated Cost for Consultant Services

Services Site investigation, Supervision TOTALSurvey engineering (in US$)and design

School Reconstruction 460,000 460,000 920,000

Health 400,000 350,000 750,000

Public Buildings 55,000 50,000 105,000

Total 915,000 860,000 1,775,000

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Costs of Component D.Totals Including ContingenciesBy Financier

Total Bank Governmen

I. Investment CostsA. Reconstruction of Schools

Mouloud Feraoun 325,825 265,580 60,245El Ghazali 392,561 319,976 72,584Marie Curie 353,305 287,979 65,326Larbi Fekhar 178,615 145,589 33,026Ibn Badiss (Ain Tolba) 196,280 159,988 36,292Taleb Abderahmane 274,793 223,983 50,809Bekhit El Hadj 628,097 511,962 116,135Ibn Badiss 431,817 351,974 79,843Tahar Ahmed 353,305 287,979 65,326CEM 17 Octobre 1,203,444 980,927 222,517CEM Max Marchand 999,803 814,940 184,864Lycee B. El Ibrahim 4,140,289 3,374,750 765,539

Subtotal Reconstruction of Schools 9,478,133 7,725,627 1,752,507B. Reconstruction of Health Facilities

Ain Temouchent Hospital 7,492,986 6,149,494 1,343,492Medical Equipment for Ain T. Hospital 5,570,823 4,285,077 1,285,746Meghni Sendid Clinic 48,735 39,997 8,738Sidi Said Clinic 146,205 119,990 26,214Sidi Ben Adda Clinic 87,723 71,994 15,729Cheouilef Salah Nursing Center 97,470 79,993 17,476Amour Ahmed Health Clinic 194,939 159,987 34,953Medical Equipment - Other Hospitals 260,015 200,004 60,011

Subtotal Reconstruction of Health Facilities 13,898,896 11,106,535 2,792,360C. Reconstruction of Public Buildings

Folk Art Center - Ain Temouchent 147,210 119,991 27,219Main Post Office - Ain Temouchent 441,631 359,973 81,658Court House - Ain Temouchent 490,701 399,970 90,731

Subtotal Reconstruction of Public Buildings 1,079,542 879,935 199,607D. Investigations, Designs and Supervision

1. School ReconstructionSite Invest., Survey and Design 603,195 459,996 143,198Supervision 603,195 459,996 143,198

Subtotal School Reconstruction 1,206,389 919,992 286,3972. Health Facilities Reconstruction

Site Invest., Survey and Design 524,517 399,997 124,520Supervision 458,952 349,997 108,955

Subtotal Health Facilities Reconstruction 983,470 749,994 233,4763. Public Buildings

Site Invest., Survey and Design 72,121 55,000 17,122Supervision 65,565 50,000 15,565

Subtotal Public Buildings 137,686 104,999 32,687Subtotal Investigations, Designs and Supervision 2,327,545 1,774,985 552,559

Total 26,784,116 21,487,082 5,297,033

Project Component 5 - US$1.69 million

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Component E: Project Implementation

To allow for a timely and efficient implementation of the project, the following institutional arrangementsare foreseen.

Interministerial Committee for Coordination, and Follow-up for Reconstruction of Ain TemouchentDisaster Area (CICS). The Intenninisterial Committee for Coordination, and Follow-up forReconstruction of Ain Temouchent Disaster Area (CICS) will be established. Its membership will includethe Minister of Interior or his representative (Chair), the Minister of Finance, the Minister of Housing, theMinister of Health, the Minister of Water, the Director of the General Directorate of Environment, andrepresentatives of non-governmental organizations. The CICS will be responsible for providing projectoversight, advice and overall guidance for the implementation of the project, and will review the project'squarterly progress reports.

Project Coordination Unit (PCU). The Project Coordination Unit will assist implementing agencies and inclose cooperation with them will help in implementation of the project. The PCU will report to theGovemor of the Wilaya who will oversee its activities. The Director of the PCU will have the authority ofhiring or dismissing staff of the PCU, subject to the Bank's approval.

T'he PCU together with implementing agencies will be responsible for issuing procurement notices, invitingtenders, and appointment of a selection committee. In its procurement activities, the PCU will incorporatedesigns and technical specifications provided to it by the corresponding sector agencies of the Wilaya (forComponents B, C and D) and by the General Directorate of Civil Protection (for Component A). Contractsprepared by the PCU will be signed by the Governor of the Wilaya or the Governor's designee, which maybe the Director of the PCU and the Head of a respective implementing agency.

The PCU will be responsible for continuous monitoring of progress in project implementation, preparationof quarterly Project Management Reports (PMRs), quality control, and together with implementing agencywill issue a letter of compliance with tenns of contract and submit the letter to the BAD for payment.Based on terms of reference developed by local technical departments and agencies in cooperation with thePCU, the PCU (in coordination with the local technical departments and agencies) will prepare biddingdocuments and contracts for construction works, goods and consultant services for all components. ThePCU together with implementing agencies will also establish work programs and detailed implementationsschedules for each component, and defne precisely responsibilities of each party involved in projectimplementation.

The Director of PCU will report to the Governor of Wilaya, but in cases which require higher authority toresolve issues that can be only cleared through a central level intervention, the Director will be able to referdirectly to the Minister of Interior.

In order to ensure application of the proper procurement procedure and to monitor these functions, the PCUwill hire an experienced Procurement Specialist familiar with the Bank's procurement procedures andguidelines.

The PCU will be responsible for monitoring compliance of the supported by project activities withenvironmental standards. For this purpose the PCU staff will include an Environmental Specialist.

In order to effectively monitor social aspects of project implementation, the PCU will hire a Social Scientistwho will conduct surveys, field visits, and prepare quarterly reports in accordance with the guidelines

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provided in the Social Assessment.

For timely payment of invoices to the works, goods, and service providers, a designated BADrepresentative will become a staff member of the PCU, and perform his/her functions within its structure.

The PCU will monitor the financial flows resulting from realization of contracts and progress inimplementation of individual activities. In order to effectively perform this function, the PCU will set upand maintain a computerized monitoring and management system which will comply with the World Bankstandards. The established system will enable the PCU to prepare the quarterly progress reports and othernecessary documents in a timely and accurate manner.

The following chart depicts implementation arrangements designed for the project, including a proposedinternal organizational structure for the PCU itself.

Project Organization Chart

Governor CvlPoeinUnitd (Compoent B)

WilayaI

Com nctoreofAPCU D e Oo Rai Ranagement Umanagemnttasforceillbe locatd in t al eTaskForce l

a Prcurement r o CGS, AdAAso CSpecialbst ll

F HinangTalhepronnjl Depuct t w Deputo nDib for impleentin the c a wonitoopn9 ent, |alC anagen - HousingR STiae Technical have an Covrdal Teo m Leader c i o

| OminHl(22) g | bffsshbt' Arc^hitatuEnginee niomn oS1

l X | ~Represnbtivt

Implementation Modalities. While the above institutional arrangement reflects the general framework ofthe project management, there are some modalities conceiming implementation of the specific components.These variations are described below.

Component A - Disaster Organization and Risk Management. Under this component an ad-hoc riskmanagement task force will be located in the General Directorate of Civil Protection (DGPC) in Algiersand will include, besides DGPC representatives, representatives of CGS, CRAAG, CTC and the Ministryof Housing. The project team will be responsible for implementing the component, and will refer to thePCU in Ain Temouchent for all matters related to procurement. In the process of implementation the taskforce will cooperate with other relevant agencies.

Component B - Hlousing. The PCU will have an overall responsibility for coordination andimplementation of this component.

The OPGI will be responsible for drafting the TORs, technical specifications, participation in theprocurement selection comrnittee at the Governor's level. Also, the OPGI will be involved in supervisionand quality control.

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The PCU would be responsible for carrying out the procurement and signing of contracts together withOPGI and the representative of the Governor (co-signing). The PCU would also hire international andnational consultants to supervise construction works, to review designs and to have overall quality controlresponsibility.

Component C - Technical Infrastructure and Component D - Social Infrastructure. The fullresponsibility for implementation of this component rests within the PCU and respective local technicaldepartments and agencies. Relevant sector specialists from the Ministries of Interior, Water, Educationand Health in the Wilaya will be responsible for the preparation of design criteria for the reconstruction ofvarious public facilities damaged during the earthquake, the preparation of appropriate terms of referenceunder the PCU guidance, and ensuring that the sector accepted design and construction practices, are beingfollowed. PCU will issue appropriate terms of reference and jointly with the sector representatives, willselect needed independent consultants and contractors to carry out the required work.

PCU staff and their consultants will carry out periodic quality control inspections of both the design andconstruction work and will assist contractors in obtaining the necessary permits, resolving anycontroversies or issues which may impede work progress, and ensuring that the Government and Bankseismic standards and environmental regulations, are complied with.

Costs. The following table shows the breakdown of the project management costs.

Costs for Component E

Total Costs Including ContingenciesBy Financier

Total Bank GovernmentI. Investment Costs

Staff Salaries and Fees 505,300 - 505,300Training 324,620 324,620 -

PCU Operating Costs 539,267 485,090 54,177Equipment and Furniture 318,731 253,816 64,915

Total 1,687,918 1,063,526 624,392

Customs and Duties. Bank funds cannot be used to finance local taxes (such as customs duties, sales tax,income tax, etc.). The import tax due on any Bank-financed goods will be paid by the Government orbeneficiary.

Monitoring and Evaluation. The PCU will continuously monitor the implementation of the project. Thestaffing of the PCU includes specialists who will deal with specific aspects of the implementation, and thecomputerized monitoring and management infonmation system that will be established will allow for timelyand accurate data collection and reporting. Also, supervision will be carried out by the Bank team incooperation with local consultants.

Beyond regular Bank midterm review of the project, one year after effectiveness the Bank will conduct areview of key project issues, including progress on Disaster Organization and Risk Management, demandfor housing, maintenance of housing and other works financed by the project, and other issues.

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Annex 3: Estimated Project CostsALGERIA: Ain Temouchent Emergency Earthquake Recovery Project

A. Disaster Organization and Risk Management 3.28 5.28 8.56B. Housing 53.25 7.20 60.45C. Technical Infrastructure 6.65 1.16 7.81D. Social Infrastructure 16.77 8.16 24.93E. Project Implementation 1.04 0.55 1.59

Total Baseline Cost 80.99 22.35 103.34Physical Contingencies 2.53 1.07 3.60Price Contingencies 4.51 0.55 5.06

Total Project Costs 88.03 23.97 112.00Front-end fee 0.84 0.84

Total Financing Required 88.03 24.81 112.84

Goods 3.08 8.96 12.04Works 78.06 9.28 87.34Technical Assistance and Training 6.37 5.72 12.09Operating Cost 0.54 0.00 0.54

Total Project Costs 88.05 23.96 112.01Front-end fee 0.84 0.84

Total Financing Required 88.05 24.80 112.85

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Annex 4ALGERIA: Ain Temouchent Emergency Earthquake Recovery Project

The economic and financial analysis is not required in accordance with OP 8.50.

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Annex 5: Financial SummaryALGERIA: Ain Temouchent Emergency Earthquake Recovery Project

Years Ending2001-2003

Year I Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7Total Financing RequiredProject CostsInvestment Costs 44.8 50.4 13.4 0.0 0.0 0.0 0.0Recurrent Costs 0.4 1.4 1.7 0.0 0.0 0.0 0.0

Total Project Costs 45.2 51.8 15.1 0.0 0.0 0.0 0.0Front-end fee 0.8 0.0 0.0 0.0 0.0 0.0 0.0

Total Financing 46.0 51.8 15.1 0.0 0.0 0.0 0.0

FinancingIBRDIIDA 35.5 39.0 8.9 0.0 0.0 0.0 0.0Government 9.3 11.2 4.9 0.0 0.0 0.0 0.0

Central 0.0 0.0 0.0 0.0 0.0 0.0 0.0Provincial 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Co-financiers 0.0 0.0 0.0 0.0 0.0 0.0 0.0User Fees/Beneficiaries 1.1 1.6 1.2 0.0 0.0 0.0 0.0Others 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total Project Financing 45.9 51.8 15.0 0.0 0.0 0.0 0.0

|Year 1 |Year 2 |Year 3 |Year 4 |Year 5 |Year 6 |Year 7Total Financing RequiredProject Costs

Investment Costs 0.0 0.0 0.0 0.0 0.0 0.0 0.0Recurrent Costs 2.0 2.3 2.6 0.0 0.0 0.0 0.0

Total Project Costs 2.0 2.3 2.6 0.0 0.0 0.0 0.0Front-end fee 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total Financing 2.0 2.3 2.6 0.0 0.0 0.0 0.0

FinancingIBRDIIDA 0.0 0.0 0.0 0.0 0.0 0.0 0.0Government 2.0 2.3 2.6 0.0 0.0 0.0 0.0

Central 0.0 0.0 0.0 0.0 0.0 0.0 0.0Provincial 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Co-financiers 0.0 0.0 0.0 0.0 0.0 0.0 0.0User Fees/Beneficiaries 0.0 0.0 0.0 0.0 0.0 0.0 0.0Others 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total Project Financing 2.0 2.3 2.6 0.0 0.0 0.0 0.0

Main assumptions:The operational period for the Algeria TEERP is assumed to be 3 years.

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Annex 6: Procurement and Disbursement ArrangementsALGERIA: Ain Temouchent Emergency Earthquake Recovery Project

Procurement

Procurement for the proposed project would be carried out in accordance with World BankGuidelines: Procurement under IBRD Loans and IDA Credits, published in January 1995, revisedJanuary and August 1996, September 1997 and January 1999, as well as Guidelines: Selection andEmployment of Consultants by World Bank Borrowers, published in January 1997 and revised January1999, and also the provisions stipulated in the Loan Agreement. A list of procurement items has beenidentified and procurement plans prepared and agreed with the Borrower at appraisal. Additional itemsmay be identified during implementation. In such cases the procurement plan will be revised following theprinciples agreed at appraisal, with minimum processing times for the Borrower and the Bank.

Procurement Review Arrangements: Given the speedy action required at each step in the process,agreement will be reached with the Borrower on standard processing times for actions such as preparationof bidding documents and specifications, bid evaluation and award recommendation, award and contractsigning, etc. A Project Coordination Unit (PCU) shall be established as soon as possible. Delegation offunctions and approval procedures within the Government should be streamlined and agreed to avoiddelays. The PCU shall have a procurement specialist on staff. In addition, the Borrower will considersupport of qualified procurement consultants from MNA to advise and train the PCU.

Delay in procurement actions will not be used to justify emergency procurement procedures. Giventhe large volume of procurement work to be completed in a short period of time, a representative withadequate power from the Governor's office will be identified to co-ordinate all emergency activities.Procurement Accredited Staff (PAS) in MNA should coordinate the procurement function. The RPA'soffice should be consulted for mandatory reviews and any other guidance.

Procurement methods (Table A)

Goods

ICB. For contracts each estimated to cost US$0.5 million or more, simplified ICB procedures asdescribed below will be used.

(a) Advertisement. As early as possible but no later than the time major items to be procuredare identified, a General Procurement Notice (GPN) will be published for every project in DevelopmentBusiness announcing ICB procurement packages and consultant services and inviting interested eligiblesuppliers, contractors and consultants to send their expression of interest to the PCU in Algeria. The GPNwill also be published in the local Algerian press. The GPN will be followed by specific advertisements forindividual contracts in the local press. Bidding documents will be sent to suppliers who will respond to theGPN. The GPN will be updated each year.

(b) Bank's Standard Bidding Documents. The most recent bidding documents approved bythe Bank for each method of procurement of Goods, Works and Consulting Services will be used by thePCU. An agreement will be reached with the Bank on sample documents for each method before use. Theperiod allowed for submission of bids may be reduced to four weeks at the discretion of the PCU.

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International Shopping (IS). IS will be used for procuring goods (including equipment, materials,commodities, etc.) of standard specifications available off-the-shelf for contracts each estimated to costUS$100,000 or more but less than US$0.5 million. IS requires comparison of price quotation obtainedfrom at least three suppliers from two countries. The list of firms will be prepared by giving firstconsideration to those who have expressed interest in response to the press publications (e.g. GPN, localpress). In order to obtain the minimum three quotations, efforts would be made to request bids from morethan three firms where practical, as a means of taking into account the possibility that some of them maynot submit quotations. Under Intemational and National Shopping procedures, requests for quotations maybe sent and quotations obtained by fax.

National Shopping (NS). This method wil be used for contracts for goods available off-the-shelf inAlgeria for contracts each estimated to cost less than US$100,000 by obtaining at least three quotations.Preparation of the list of firms to be invited to bid will follow the same principle as in the case of IS exceptthat all firms may be nationals of Algeria.

Works

ICB. Procedures for advertising and use of bidding documents will be those described in the case ofICB - Goods. ICB procedures for Works will be used for contracts each estimated to cost US$5 million ormore.

NCB. Considering the political environment in Algeria and the works being dispersed and of anature such that foreign contractors may not be interested in participating (repairs to roads, etc.), NCBwill used for contracts each estimated to cost US$0.5 million or more but less than US$5 million.However, interested foreign contractors will be allowed to participate in NCB. Not less than three weekswill be allowed for submission of bids, the applicable minimum depending upon the nature and size ofprocurement. There will be no need for pre-qualification. A sample NCB document for Works will becleared for use by the PCU as in the case of ICB. No bids will be rejected based on pre-determinedbracketing (cut-off above and below the engineer's estimates). Awards will be made to the lowestevaluated responsive bidder based on bid evaluation criteria specified in the bidding documents and no newcriteria will be adopted. Bids will be opened in public the same day and time when these are received.

Procurement of Small Works. The standard bidding document cleared by the Bank for SmallWorks will be used for Works contracts each estimated to cost less than US$0.5 million. These works willbe procured under lump-sum, fixed-price or unit rate contracts awarded on the basis of quotations obtainedfrom at least three qualified local contractors in response to local advertisement. The bidding documentshall include a detailed description of the works, including basic specifications, the required completionperiod, a basic form of agreement consistent with the standard document cleared by the Bank, and relevantdrawings where applicable. The award shall be made to the contractor who offers the lowest pricequotation for the required work, and who has the experience and resources to successfully complete thecontract.

Oversight and Supervision. Considering the failure of structures in the recent earthquake in spiteof Temouchent being a low-seismic-risk area, it would be advisable to have the design of proposedstructures be prepared by a qualified firm or at least vetted by an intemational finn or some reputableindependent agency. An intemationally recruited consulting firm or firms should be selected to superviseconstruction, especially for the cases of large contracts. Bank supervision of construction should be bytechnical staff.

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Consulting Services

Consultants will be procured in accordance with the Bank Guidelines which shall include bothcompetitive and single-source selection in accordance with paragraphs 3.8 and 3.11 of the ConsultantGuidelines. The single-source packages will be identified and justified in the procurement plan for eachproject. Urgent studies required for the selection of construction sites, and preparation of constructiondesigns estimated to cost equivalent of US$100,000 or less, may be procured under Direct Contracting .Single-source selection during project implementation will need the Bank's prior approval. QCBS methodwill be used for procuring the services of consulting firms. QCBS and consultants engaged as individualswill be applicable metiods for consulfing services.

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

1. Works 7.49 61.69 7.03 0.00 76.21(6.15) (52.38) (5.71) (0.00) (64.24)

2. Goods 5.83 0.00 6.21 3.97 16.01(4.49) (0.00) (4.90) (0.00) (9.39)

3. Services 0.00 0.00 10.92 0.43 11.35/Training (0.00) (0.00) (8.50) (0.00) (8.50)4. Beneficiary Contribution 0.00 0.00 0.00 3.97 3.97

(0.00) (0.00) (0.00) (0.00) (0.00)5. Front-end fee 0.00 0.00 0.84 0.00 0.84

(0.00) (0.00) (0.84) (0.00) (0.84)6. Operating Cost 0.00 0.00 0.54 0.75 1.29

(0.00) (0.00) (0.49) (0.00) (0.49)7. Housing Maintenance 0.00 0.00 0.00 3.18 3.18

(0.00) (0.00) (0.00) (0.00) (0.00)Total 13.32 61.69 25.54 12.30 112.85

(10.64) (52.38) (20.44) (0.00) (83.46)

Figures in parenthesis are the amounts to be financed by the Bank Loan. All costs include contingencies

2 Includes civil works and goods to be procured through shopping and consulting services.

Under Goods, other methods include IS Contracts (US$5.89 million), NS contracts (US$0.32 million), Materials(US$3.97).Under Services, other methods include QCBS contract (US$10.60 million), Individual consultant contracts(US$0.32 million). Training is also included in Consulting Services (USS.08 million) in NBF.

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Table Al: Consultant Selection Arrangements (optional)(US$ million equivalent)

Cos1g~ .; . . . . iect oi.M.t0a t

A. Firms 10.60 0.00 0.00 0.00 0.00 0.00 0.43 11.03(8.18) (0.00) (0.00) (0.00) (0.00) (0.00) (0.00) (8.18)

B. Individuals 0.00 0.00 0.00 0.00 0.00 0.32 0.00 0.32(0.00) (0.00) (0.00) (0.00) (0.00) (0.32) (0.00) (0.32)

Total 10.60 0.00 0.00 0.00 0.00 0.32 0.43 11.35(8.18) (0.00) (0.00) (0.00) (0.00) (0.32) (0.00) (8.50)

1\ Including contingencies

Note: QCBS = Quality- and Cost-Based SelectionQBS = Quality-based SelectionSFB = Selection under a Fixed BudgetLCS = Least-Cost SelectionCQ = Selection Based on Consultants' QualificationsOther = Selection of individual consultants (per Section V of Consultants Guidelines),Commercial Practices, etc.

N.B.F. = Not Bank-financedFigures in parenthesis are the amounts to be financed by the Bank Loan.

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Prior review thresholds (Table B)Goods and Works. All contracts for Goods and Works following ICB procedures, as well as the first twocontracts under NCB and Small Works, the first two under IS for Goods and the first two under NS forGoods will be subject to Bank prior review. All other contracts will be subject to selective post review bythe Bank.

Consulting Contracts. Procurement documentation for consultant contracts procured competitively andeach estimated to cost US$0.1 million or more with firms, or $50,000 or more with individuals, as well asall sole-source contracts, will be subject to the Bank's prior review. Follow-up assignments will bepermissible to the extent that these are indicated in initial TORs. Contracts below the above amounts willbe subject to selective post review.

Table B: Thresholds for Procurement Methods and Prior Review

1. Works >5,000 ICB 7.49 (6.17)<5,000 NCB 5.00 (4.1)<500 MW 3.13 (2.58)

2. Goods >500 ICB 5.83 (4.81)<500 IS 1.0 (0.83)<100 NS 0.32 (0.26)

3. Services >200 QCBS 10.60 (8.18)<50 Individual .100 (0.68)

4. Miscellaneous5. Miscellaneous6. Miscellaneous

Total value of contracts subject to prior review: 33.47 (27.61)or 30% (33%)

Overall Procurement Risk Assessment

Frequency of procurement supervision missions proposed: One every six months (includes specialprocurement supervision for post-review/audits)

Thresholds generally differ by country and project. Consult OD 11.04 "Review of ProcurementDocumentation" and contact the Regional Procurement Adviser for guidance.

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Disbursement

Allocation of loan proceeds (Table C)The proposed Bank loan of US$83.46 million would be disbursed over a period of three years.Disbursements would be made against eligible project expenditures for goods, technical services, works andconsultants' services according to the financing percentages indicated in the Table below.

Due to the emergency nature of the operation and the need to provide immediate assistance to people livingin the disaster area the Bank agrees to apply retroactive financing up to 20% of the loan amount, US$16.8million. Procurement should be conducted according to the Bank guidelines. Retroactive financing may beused for payments made for expenditures incurred within four (4) months prior to the date of signing of theLoan Agreement, but after December 23, 1999.

Table C: Allocation of Loan Proceeds

Works 64.24 80%Goods 9.39 100% of foreign expenditures, 100% of

local expenditures (ex-factory cost) and80% of local expenditures for other items

procured locallyConsultants' Services and Training

a. Design and supervision of physical 8.18 100%works under Components A, B, C andD

b. Other consultants' services 0.33 100%Incremental Operating Expenditures 0.49 90%

Total Project Costs 82.63Front-end fee 0.83 100%

Total 83.46

Use of statements of expenditures (SOEs):

Project funds will be disbursed under the Bank's established traditional disbursement procedures,including statements of expenditure (SOEs). Disbursements against contracts below the followingthresholds will be made against SOEs: (i) US$5.0 million for civil works; (ii) US$0.5 million for goods;(iii) US$0.1 for consulting firm contracts; (iv) US$50,000 for individual consultant contracts.Supporting documentation for SOEs will be retained by the Borrower (originals of documentation will beretained by the BAD, and copies by the PCU), be made available to the Bank during project supervision,and be audited annually by independent auditors acceptable to the Bank All disbursements above thesethresholds will be submitted to the Bank for payment on the basis of full documentation.

Special account:To facilitate disbursements against eligible expenditures, the Borrower (Ministry of Finance - MOF) willopen a Special Account (SA) maintained in US dollars in the Central Bank of Algeria (CA) under termsand conditions satisfactory to the Bank. Management of the SA would be delegated by the MOF to theAlgerian Development Bank, or BAD (Banque Algerienne du Developpement), a financial institution of

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the MOF. The Ministry of Finance (MOF) will delegate the right for signing withdrawal applications tothe designated BAD senior managers (three designated signing senior managers are envisaged). The BADwould prepare a request for initial advance to the SA and replenishment applications thereafter. GOA willbear the foreign exchange risk.

The Bank would, upon request, make an authorized allocation of US$8.0 million. Initially the allocationwould be limited to US$5.0 million, until disbursements have reached equivalent of US $20.0 million, atwhich time the full authorized allocation could be claimed. Withdrawals from loan proceeds will be basedon Bank's traditional disbursement procedures. Requests for disbursements under contracts above theprior review thresholds should be fully documented. Requests for disbursements under contracts abovethe prior review thresholds should be fully documented. The minimum application size for payments to bemade directly by the Bank to the contractors and suppliers or for issuance of Special Commitments is 20%of the authorized allocation to the Special Account. Applications for replenishment will be submittedmonthly or when 33% of the initial deposit is disbursed, whichever occurs sooner. Replenishmentapplications will be supported by the necessary documentation including the SA statement and areconciliation of the SA statement to the project's records based on invoices and other documents. The SAwill be audited annually by auditors acceptable to the Bank.

After one year, the Bank together with the Borrower will conduct an analysis of implementation progress.Given the emergency nature of the project, if inefficiencies are found in the flow of funds, the Bank and theGovernment will then agree on an alternative mechanism for flow of funds.

Financial Management

The Algerian Development Bank (or BAD, Banque Algerienne du Developpement) will be responsible forproject financial management, including processing of all financial transactions, reconciliation ofexpenditures with the approved project budget as well as project records with the Bank records and theSpecial Account replenishments.

* Accounting system. The BAD financial management system (FMS) in place is based on principles andprocedures defined by the legal framework applicable to the public sector. The BAD maintains anaccounting system based on the cash basis and the outline of budget components according to theprovisions of the Public Accounting Law. Transactions in terms of commitments and disbursementsare reflected in BAD accounting books maintained manually.

* Budgeting system. GOA will ensure that local currency equivalent to the amount advanced to theSpecial Account (SA), and counterpart funds for the project are available to the BAD throughbudgetary allocations. Budgetary allocations would be based on the annual budget for the projectactivities prepared by the PCU in collaboration with the Ministry of Finance (MOF). The total projectbudget includes the Government's contribution as well as funds to be used from a Special Account.

* Control of the budget execution. A fiduciary responsibility for control of the budget execution andmonitoring is assigned to Ministry of Finance through a specialized audit department, "Inspection Generale des Finances" (IGF). The BAD financial management arrangements satisfy the Bank minimumrequirements as the public accounting legal framework used by the BAD ensures financialaccountability. However, the BAD manual financial management system currently in use has nocapacity to generate the Bank-required management-oriented project reporting. Therefore, projectreporting and accounting functions will be the responsibility of the Project Coordination Unit (PCU)located in Ain-Temouchent

Project Coordination Unit (PCU). The PCU will be responsible for control of eligibility of project

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expenditures to be paid by the BAD, and for project accounting and reporting. To fulfill these functions,the PCU will be adequately staffed, including an Accountant and a BAD staff member delegated to thePCU, by July 31, 2000 (a dated Loan covenant confirmed during Negotiations). The staff salaries will becovered by the GOA. Detailed implementation arrangements, including staffing of the PCU and terms ofreference (TORs) for the Accountant, are included in the Project Implementation Plan (PIP).

Project accounts and expenditure documentation. Project accounts would be maintained on a cash basisprinciple using the project management information system developed for this purpose which will beimplemented by no later than October 31, 2000. The PCU Accountant will ensure that copies of all theproject expenditure documentation (contracts, invoices, etc.) are kept on project files in Ain-Temouchent.Project accounting would cover all sources of project funds, and all utilization of project funds. Thiswould include payments made and expenditures incurred. Project expenditures will be classified bydisbursement category and cross-referenced to project documents. All project-related transactions (whetherinvolving cash or not) would be taken into account in the reporting system.

Expenditure control. All expenditures to be paid by the BAD will be reviewed and approved by the PCUDirector in two phases: (i) before commitments are made and contracts signed -- in terms of their eligibilityunder the Loan Agreement; (ii) when invoices are presented for payments -- in terms of an applicablecontract before and confirmation that goods were delivered, works executed, or services rendered. Uponapproval by the PCU Director of invoices submitted for payment, the BAD staff delegated to the PCU inAin-Temouchent will be expected to pay them within five days.

Reporting.The PCU will prepare quarterly Project Management Reports (PMRs) following the Cash Model. In orderto generate the PMRs, the PCU will establish a computerized financial management information system.The PCU will acquire a PC computer and a project financial management information software programthat permits maintaining accounting records in US dollars and Dinars with a reporting capability to prepareproject financial management reports (PMRs). Appropriate specialists would be hired to assist the PCU indeveloping of the project financial management information system and supporting documentation. Settingup the PCU financial management infonnation system is to be completed no later than October 31, 2000.

Project Management Reports (PMRs). Although disbursements will be made using traditionaldisbursement procedures, the PCU will prepare and submit quarterly Project Management Reports (PMIRs-- Cash Model) to the Bank. The reports would include: (i) a comparison of budgeted and actualexpenditure, including sources and application of World Bank funds (by components and expenditurecategories), and on physical parameters and unit rates for selected key items; (ii) procurement managementreports. The reports would be management-oriented (i.e., summaries rather than transactional details) andwould be used for project monitoring and implementation. The PMRs should include the three followingparts:(i) Financial Statements that include:- Summary of sources and uses of World Bank funds- Uses of funds by project activity- Cash withdrawals (disbursements)- Special account statement(ii) Project progress statements that include:- Output monitoring report using contract management information, or- Output monitoring report using unit variance as monitoring indicator(iii) Procurement management report that includes:- Contract expenditure report - Goods and works

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- Contract expenditure report - Consultants- Procurement management report - Goods and works- Procurement management report - Consultants

The format of PMRs, agreed with the Borrower during Negotiations, is described in the Projecthnplementation Plan (PIP).

Audit ArrangementsAn annual audit of project records and accounts, including audit of the Special Account (SA), anddisbursements under Statement of Expenditures (SOEs) will be performed by an independent auditor,acceptable to the Bank, according to the Intemational Standards of Auditing as issued by the InternationalFederation of Accountants, the Banlk's Guidelines ("Financial, Accounting, Reporting and AuditingHandbook - FARAH") and specific terms of reference (TORs) acceptable to the Bank. The auditor willexpress a professional opinion on the annual project financial statements and will submit to the Bank anannual audit report within six months after the end of each government fiscal year.

Financial Management RisksThe risks related to the project's financial management system are three, and they are primarily related toability to generate timely and accurate management-oriented project reports:

(i) Capacity of PCU staff. Staffing the PCU with a qualified accountant by July 31, 2000, is a datedLoan covenant.(ii) Capacity of project financial management system to generate the agreed Project ManagementReports (PMRs). Setting up of the PCU project financial management information system is to becompleted by October 31, 2000 to generate the PMRs.(iii) Delays in preparation of Project Management Reports (PMRs). Preparation of the first PMRs,acceptable to the Bank, by October 31, 2000, is a dated Loan covenant.

The project financial management milestones as reflected in the dated Loan covenants were designed tomitigate the risk linked to reporting insufficiencies identified in BAD's existing reporting system. Theagreed actions will be progressively implemented to build up an adequate project financial managementinformation system by October 31, 2000.

The Bank will give special attention to the project financial management during the project implementationby providing the necessary technical assistance and training. In particular, project management reportingrequirements were agreed during Negotiations. The reporting formats together with TORs for theAccountant are described in the Project Implementation Plan (PIP). The financial management risks willbe subject to a rigorous follow-up during the supervision missions.

Reaching the milestones in project implementation related to project fnancial management will be closelymonitored by the Bank. These milestones include:(i) establishment of fully staffed PCU - July 31, 2000.(ii) putting in place project financial management information system and preparation of PMRs -- O6tober31, 2000. The general design of the financial management reporting system for the project would bereviewed by no later than October 31, 2000.

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Procurement Assessment/Action PlanFor Improvement of Procurement Capacity and Mana2ement

Procurement Coordination and Organization Arrangements:1. Project Coordination Unit (PCU) will be responsible for procurement related activities, which willbe carried out in accordance with World Bank procedures, for all components. The PCU will beresponsible carrying out the procurement activities for the project in coordination with the implementingagencies. In its procurement activities, the PCU will incorporate designs and technical specificationsprovided to it by the corresponding sector agencies of the Wilaya (for Components D and E) and bynational Civil Protection (for Component A). Contracts prepared by the PCU will be signed by theGovernor of the Wilaya or the Govemor's designee, which may be the Director of the PCU.2. An organizational structure for the PCU and the number of staff, required skills and salary levelswere has been agreed to.3. Salaries of PCU staff will be covered by the Government's contribution to the project. Training ofthe staff and technical assistance to the PCU will be provided by MNA procurement staff when required.4. A Project Coordination Unit (PCU) shall be established as soon as possible. Delegation offunctions and approval procedures within the Government should be streamlined and agreed to avoiddelays. The PCU shall have a Procurement Specialist on staff.5. Any specific procurement matters requiring clarification, all complaints, and requests for approvalof any changes in the above-mentioned procedures, will be submitted to the Regional Procurement Adviser,MNA, for clearance.

Assessment of PCU's Capacity to Conduct Procurement.

6. Mr. Gurdev Singh, Procurement Accredited Officer, conducted a procurement assessment of theAgency and the PCU. PCU is not fully staffed and equipped. PCU Director who has been hired does nothave any procurement experience. Neither PCU or the Agency has any experience with World Bank fundedprojects. The assessment focused primarily on the capacity, and proposed recommendations forimprovements.

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Action Plan

Agency Issue Action Due Date

PCU Staffing Recruitment of a Procurement Specialist (PS) By Effectivenesswith substantial experience in internationalprojects preferably WB projects. MNA willprovide training to PS.

WB Procurement book containing the Bank's Beforestandard procurement documents will be Effectivenessprovided to the PCU just after BoardPresentation

The project launch workshop, which will be Beforeheld before effectiveness and should devote Effectivenessadequate time to updating the PCU staffprocurement skills. During this workshop, thecontents of the procurement book should beexplained to the PCU staff.

PCU Planning & Establish a monitoring of all procurement At Project Launchreporting (i) activities and for all procurement processes

(tendering, evaluation, contract signing,implementation period, delivery, etc.).

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Annex 7: Project Processing ScheduleALGERIA: Ain Temouchent Emergency Earthquake Recovery Project

~ag~~t $e=~wt.u.. . .Time taken to prepare the project (months) 3First Bank mission (identification) 01/22/2000 01/22/2000Appraisal mission departure 04/09/2000 04/09/2000Negotiations 05/03/2000 05/03/2000Planned Date of Effectiveness 07/15/2000 _

Prepared by:

Bank team in cooperation with the Government of Algeria.

Preparation assistance:

Bank staff who worked on the project included:

Piotr Wilczynski Task Team LeaderSonia Hammam Sector Manager - Urban DevelopmentChristoph Pusch Housing/Technical and Social InfrastructureJolanta Kryspin-Watson Operations/Institutional ArrangementDouglas I. Graham Financial ManagementGurdev Singh ProcurementMark Zeydler Housing/Technical and Social hifrastructureSuha Satana CostsMohammed Al-Sheikh LawyerMarie Khoury DisbursementsFerid Belhaj LawyerMilena Messori OperationsMichelle Cullen Social AssessmentHocine Chalal Environmental SpecialistEdwige Reichelt Office ManagerRichard Andrews Disaster Response and Risk ManagementPeter Doty Housing FinanceHelene Talon TranslatorNicole Wautiez de Blaye TranslatorAnna Danuta Staszewicz Financial Management, Disbursement, New Financial ProductsLucy Hancock Research/OperationsMaria Nikolov Program AssistantMariusz Safm Economic Analysis

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Annex 8: Documents in the Project File*ALGERIA: Ain Temouchent Emergency Earthquake Recovery Project

A. Project Implementation Plan

Implementation of Ain Temouchent Emergency Earthquake Recovery Project

B. Bank Staff Assessments

C. Other

WILAYA D'AIN TEMOUCHENT: Rapports d'evaluation des dommages causes par le seisme du 22decembre 1999 (Assessment of damages caused by December 22, 1999 earthquake)

Evaluation des dommages causes aux edifices publics par le seisme du 22 decembre 1999 (Assessment ofinfrastructure damaged by December 22, 1999 earthquake); Ketfi Ammar

Evaluation des dommages dans le secteur de l'habitat (Assessment of damages in housing sector);Mohamed Ayadi

*Including electronic files

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Annex 9: Statement of Loans and Credits

ALGERIA: Ain Temouchent Emergency Earthquake Recovery Project

Difference between expectedand actual

Original Amount in US$ Millions disbursementsProject ID FY Borrower Purpose IBRD IDA Cancel. Undisb. Orig Frm Rev'd

P004964 1992 Algera ALG-CADASTRE 33.00 0.00 2.27 5.93 8.20 4.21

P004954 1993 Algefia BASIC & SEC. EDUCATI 40.00 0.00 0.00 11.92 9.91 0.00

P004907 1995 Algefia DZ-HIGHWAYS Vl 130.00 0.00 0.00 80.66 60.86 0.00

P042940 1998 Algena DZ-LOW INCOME HOUSING 150.00 0.00 0.00 140.00 42.50 0.00

P004974 1994 Algeria DZ-WATER SUPPLY AND SEWERAGE 110.00 0.00 0.00 9427 75.27 1.35

P004960 1996 Algeria IND.POLLUTION CTRL. 78.00 0.00 0.00 70.63 26.79 4.63

P043724 1997 Algeria RURAL EMPLOYMENT 89.00 0.00 0.00 68.88 62.28 3.88

P004978 1996 Algera SOCIAL SAFETY I 50.00 0.00 0.00 8.54 7.54 7.54

Total: 680.00 0.00 2.27 480.83 293.35 21.61

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ALGERIASTATEMENT OF IFC's

Held and Disbursed Portfolio

In Millions US Dollars

Committed DisbursedIFC IFC

FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic1998 ABCA 0.00 2.00 0.00 0.00 0.00 1.88 0.00 0.001992 Helios 4.00 0.00 0.00 0.00 4.00 0.00 0.00 0.001998 SGA 0.00 1.00 0.00 0.00 0.00 0.19 0.00 0.00

Total Portfolio: 4.00 3.00 0.00 0.00 4.00 2.07 0.00 0.00

Approvals Pending Commitment

FY Approval Company Loan Equity Quasi Partic1999 Aldaph 7274.75 0.00 1700.00 6235.50

Total Pending Commitment: 7274.75 0.00 1700.00 6235.50

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Annex 10: Country at a GlanceALGERIA: Ain Temouchent Emergency Earthquake Recovery Project

- M ~~East 1o W*1-POVERTY and SOCIAL & North middl-_

Algeria Africa incoe - Development dlamond'

1998Population. mid-vear (millions) 30.0 285 908 Life expectancy

GNP Per capita Mias method, U$$ 1-t550 2,060 1.710GNP (Atlas method. US$ billions) 46.5 586 1t557

Average annual growth, 199248 TPopulation tXJ 2.2 2. 1;1Labor force (%3) 44 3.0 1.5 GNP Gross

Mos- re-ent estimate (isteatycar sysuabte. 1992-961 per primaryMost recent estinate ate-y4aaallabi 1992-981 -capita enrollment

Poverty ($ of popul4tioJo below national povetvi Afro) 23Urban population ($6 f total Population) 58 S8 56

Life expectancy at blrt (m8ars): 70 67 68Infant nortality (per:1.000 five births) 32 49 38Child matnurtrition f% of children under 5) 1 3 14 I Access to safe water

Access to safe ~water f% of population) - 6 1 75Illiteracy (of poPulation 0ae 15+) 40 38 1i 4Gross prinary enrolment ('A ofschool-age population) 108 96- 103 - Algena

Male 113 103 105 --------- Lower-middle-income groupFemale -102 89 100

KEY ECONOMIC RATIOS and LONG-TERM TRENDS

-1977 1987 1997 8Economic retloe

GDP (tUJ billions) 21.0 64.5 46.9 48.4

Gross domestic investmentUDp-P 46.8 30.0 23.8 27.2

Exports of aoods and servlcestGP 30,SS 14.7 30.6 23.4 TradeGross domestic savingsGDP - 35.7 31.9 32.2 27T2Gross national savins/GDP 34.8 36.9 29.8 25.4

Current accountbetanceIGOP -11.0 0.1 7.4 -L9Interest paymentslG0P 2;0 2A 4.1 39 Domestic InvestmentTotal debttGDP 50.4 37.8 65.8 63.4 Savings vse

Total d*bt service/exPorts 25.3 -182 27.2 40.9Present value-of debtlGDP - 6.3Present value of debt/exports _ - 180.9

- ~~~~~~~~~~~~Indebtedness1977-87 1968-98 1997 1998 1999-03

(averSaoe annual gro wth.GDP 4.4 0.9 1i1 5.1 6.0 "AlgeriaGNP Per capita 1.1 -1.4 0.6 3.7 4.0 Lower-middle-income grvupExports of ooodt and services 2.8 1.9 6.$ 3.6 4.4

STRUCTURE of the ECONOMY1977 1987 1997 1998 Growth rates of outputand investment(%l

($6 of GOP) 2

Aariculture 10.0 12.4 10.3 12.1 20

Industry 51.2 43.4 52.3 47.3 10-Manufacturing 9.3 13.5 9.3 10.6

Services 38.8 44.2 37.4 40.6 o 5 9 s t

Private consumption 51.0 49.5 51.0 54.7 -a 7

General government consumption 13.3 18.5 16.7 18.1 GDI _GDPImports of qoods and services 41.6 12.8 22.2 23.3

(average annual growth) 1977-87 19SS-98 1997 1998 Growth rates of exports and Imports 1%)

Agriculture 4.9 2.8 -13.5 11.4 'o

Industry 3.9 -0.7 4.3 4.1 5

Manufacturinq 10.7 -10.7 -3.8 8.4 oServices 5.3 2.8 2.6 4.4 S\ 98 f97 go

Private consumption 5.8 -1.4 -2.6 1.6 .5 - s sGeneral govemment consumption 6.4 4.0 2.0 3.0Gross domestic investment 0.1 -1.9 -0.4 17.4 15

Imports of goods and services -0.2 -2.3 2.4 5.8 1 E Exports ImportsGross national oroduct 4.3 0.9 2.7 5.8

Note: 1998 data are preliminary estimates.

'The diamonds show four kev Indicators in the countrv (in bold) comDared with its income-group averaae. If data are missing, the diamond willbe incomolete.

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Algeria

PRICES and GOVERNMENT FINANCE1977 1987 1997 1998 Inflation ()

(% chang,e) .Consumer prices 12.2 7A 5.7 5.0 a_Implicit GDP deflator 11.8 6.2 6.5 -4.2 20.

Governmont finance ID->(% of GDP, includes current grants) oCurrent revenue .. 30.4 33.5 27.8 6 F 94 ss 96 97Current budqet balance .. 9.4 10.2 4.0 -GDP deflator *CPIOveraD surplus/deficit .. -7.2 2.4 -3.9

TRADE

(US$ miiiirjns,i 1977 1987 1997 1998 Export and Import levels (US$ millons)

Total exports (fob) ., 8,745 13,820 10,145 1.000Natural qas 852 5,847 4,371Refined products 1,975 2,358 1,487 12,000Manufactures .. 37 40 42

Total imports (cif) .. 7,904 8,130 8,629 8,000 . , ILFood 1,745 2,166 2,481 ,0**Fuel and energ, y 161 103 102Capital goods .. 1,893 1,927 2,492 o1 "

ExDortpriceindex(1995=100) 67 110 111 78 62 93 94 95 97 98Import price index (19956=00) 65 67 96 88 oExpors a*ImportsTermsof trade (1995=100) 104 163 116 8a

3ALANCE of PAYMENTS

(US$ millions) 1977, 1987 1997 1998 Current account balance to GDP ratlio%)

Exports of goods and services 6,331 9,290 14,890 10.903 8-Imports of aoods and services 8,476 9,407 10,280 10,940 8-Resource balance -2,146 -117 4,610 -37 4

Net income -367 -1,332 -2,220 -1,946 2Net current transfers 190 1,487 1,00 1,064 o

Current account balance -2,323 39 3,450 -919 -2 92 93 97 0

Financing items (net) 1,943 9 260 -175Changes in net reserves 380 -48 -3,710 1,094 41

Memo:Reserves including gold (USS millions) 1,684 4,341 10,190 8,138C-onversion rate (DEC, locaOlUS$) 4.1 4.8 58.9 57.5

EXTERNAL DEBT and RESOURCE FLOWS1977 1987 1997 1998

(US$ millions) Composition of total debt, 1998 (USS millIons)Total debt outstanding and disbursed 10,600 24,402 30,890 30,666

IBRD 138 924 1,795 1,676 |G: 106 1,671

IDA 0 0 0 0 | c 011

Total debt service 1,686 -1,837 4,420 5.1368:904 :.1IBRD 10 141 354 332 |t4IDA 0 0 0 0

Composition of net resoure flowsOffrial grants .. .. 30 55Official creditors -46 -3,297 122 -125Private creditors 1,994 1,003 -557 -1,328Foreign direct investment -58 -109 260 505Portfolio equity 0 0 8 2 E: 15,025

World Bank program A -18RD E BiiateralCommitments 170 464 89 150 IS-IDA D- Olher mulbiatera F-PrivateDisbursements 53 129 256 56 C c IMF GPrincipal repayments 0 79 234 208Net flows 53 50 22 -152Interest payments 10 62 120 124Net transfers 43 -13 -98 -278

MNCMG 9/9/99

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AdditionalAnnex No.: 11

Ain Temouchent Earthquake Emergency Reconstruction ProjectSocial Assessment

Since 1992, Algeria has been affected by instability and political problems. Government changes in 1999have given much hope that stability and potential for growth and development will increase. During the oilboom years preceding the eruption of hostilities, social indicators improved markedly and poverty declineddue to high investment in education, health, and basic infrastructure. With the fall of oil prices in 1986, thisprogress reversed as unemployment grew rapidly to about 25% (65% among youth). Acute housingshortages developed, averaging an occupancy rate of 8 persons per unit, the highest in North Africa. A highpopulation growth rate of 2.9% and rural migration to the cities compounded this crisis.

In addition, changing demographics (age composition) and cultural conditions are fundamentally alteringAlgeria's social topography. Poor economic conditions and political instability, combined with the changesin Algerian social topography, has put much of the country at increased risk in terms of income shocks ordisasters.

T'he earthquake that hit the wilaya of Ain Temouchent on December 22, 1999 revealed this increasedvulnerability of Algerians in this commune in terms of lost resources, income, and housing and highlightedvarious areas of improvement for the Algerian government in terms of disaster organization and riskmanagement. The TEERP will address these needs while also providing for the immediate needs offinancial relief for emergency and recovery operations already implemented and the reconstruction ofhousing and technical and social infrastructure.

Key social issues relevant to the project objectives

Roughly one quarter of Algerians live below the poverty line, and up to thirty percent of the population isunemployed. Precarious economic standing, not only in the quake-affected wilaya but countrywide, haspoised much of the Algerian population on the edge of vulnerability. This volatility places numerous groupsas risk in the face of income shocks or natural disasters, jeopardizing their abilities to secure the food andshelter necessary for survival.

The people of the four communities hit by the quake and targeted for this project - Ain Temouchent, SidiBen Adda, Ain Tolba, and Ain Lalam - reside in poor economic conditions. A social survey conductedafter the quake to help assess damage revealed that of the 4,200 families interviewed, In the commune ofd'Ain Temouchent 2,184 families were surveyed (52% of those surveyed); in Sidi Ben Adda, 546 familieswere surveyed (13%); in Ain Tolba, 1,008 families were questioned (24%); and in the locality of d'AinAllem, 462 families were surveyed (11%). only about 34% of those questioned (1,428 families) wereemployed (salaried). Only 2,262 of those interviewed were insured. Each family has roughly 3.25 childrento support, with a total of 13,650 children under the guise of those questioned. Within the four sites, 518people were handicapped, of which 285 suffered from chronic illnesses. Thus according to the results fromthe social survey, the population exposed to vulnerability by being impoverished and without resources isroughly 66% (2,772) - including those without income, those who have no resources, those who arehandicapped, and those who have acute illnesses. TEERP design and implementation should do what it canto help alleviate the wilaya's grave socio-economic conditions.

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Housing and Technical and Social Infrastructure

For each of these three components, beneficiaries should be consulted in participatory consultations to gaininsight on their concerns, needs, and thoughts in regards to reconstruction / repair (as part of the socialassessment and monitoring and evaluation as described below). Maps of the previous city layout should beused as a basis for beneficiaries to assist with the new urban planning and site selection (although this alsowill need input from technical experts in terms of what sites are feasible, etc.). Site selection, in addition tobeing done with technical and government input, should involve beneficiary consultation, and investigatepatterns of population, settlement, and land use (de facto and regulated, such as protected heritage ornatural resource sites, watershed or conservation areas). Consultations should include input on housing andbuilding design (in terms of structure and aesthetics), and on the new locations of public buildings (healthcenters, schools, post office, etc.). The placement of public buildings should ensure equal access for theresiding populations.

Beneficiaries in the rural areas may have certain fears about being returned to former areas of residence (ornear old areas of residence) due to potential aftershocks and future earthquakes. If relocation will be nearold housing sites hit by the earthquake, a public information dissemination program should be implementedto make beneficiaries aware of why this site is safe and why it has been selected to allay potential fears.

It may be beneficial to conduct a public education program on disaster mitigation and guidance indisaster-resistant building techniques for those in rural areas to help improve their abilities to deal withpotential future earthquakes. The social assessment that is conducted should examine the specifics of whatlocals feel may be needed in this area, which can then be combined with materials from technical experts.

Local involvement, including people from local administration and civil society (including mosques andNGOs), will be key to this project's success and sustainability. If at all possible, building materials shouldbe used that will support local production, able earthquake victims should be employed with any publicworks affiliated with reconstruction (and trained as appropriate), and local fins should be used forbuilding and construction.

Project Implementation

Beneficiary input should be sought for both project design and implementation including monitoring andevaluation. If at all possible, locals should be contracted to assist with the reconstruction process, thushelping to alleviate some of their imnmediate financial needs and leaving capacity within the wilaya(assuming training and capacity building are provided as needed).

It is suggested that a Social Scientist be hired or kept 'on call' for overseeing social assessments,participatory monitoring and evaluation, and giving input as design and implementation move forward.

The representative of the Ministry of Housing in the wilaya will be responsible for the setting up of criteriafor beneficiary selection, the selection of beneficiaries, maintaining beneficiary files, writing up the TORfor the contract with the PCU, and keeping track of beneficiary contributions. It is of the utmost importancefor each of these activities to be done in the most transparent of manners. Beneficiaries must feel that theproject is being designed and implemented under fair and just conditions and that each has access to reliefbased on need.

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Participatory Approach

Community participation in the project cycle will increase a sense of ownership by beneficiaries and thewillingness to maintain (and protect) completed works; improve implementation efficiency; foster inclusionthrough project implementation; help to identify vulnerable groups. In addition, as Algeria has been a stateplagued by conflict for eight years, participatory methods may also help reconcile local differences andencourage group discussions to emerge as local mechanisms for conflict resolution. Participatory methodsshould include local administration, representatives from various civil society organizations, and a wideselection of commune members. istitutionalzing participation requires organizational and technicalcapacity, thus the PCU and project implementers must be adequately staffed and trained. Adequatecommunity participation may be achieved by:* Conducting a participatory social assessment (using participatory rural appraisal and beneficiaryassessment techniques) to capture baseline information and identify / prioritize needs and concerns of thecommunes in relation to project objectives* Fostering systematic participation of the local population during project implementation, includingif possible labor based works for reconstruction, monitoring and evaluation, and in-kind contributions(suggested materials or labor since finances are scarce).

The participatory social assessment process be implemented and overseen by the PCU, although localconsultants from the wilaya should be hired (if possible) to lead consultations and survey implementationaffiliated with the social assessment and monitoring and evaluation. By using local consultants, capacityfor participatory and conflict resolution methods will be left within the wilaya. Prior to using participatorymethods, training should be provided to the PCU and local consultants on social assessment techniques,mainly participatory rural appraisal (PRA) and beneficiary assessment (BA) (see Appendix I for suggestedguidelines for both).

The social assessment should contain: i) baseline information including a brief description of thecommunity (demographics, socio-economic conditions, etc.,) and a map of its extant economy and socialand economic infrastructure; ii) a list of needs and priorities that fit within the project objectives; iii) costrecovery and cost sharing models for operation and maintenance costs after project completion; and iv)recommendations on how adverse impacts may be avoided or minimized. The social assessment processwill also help:* Enhance the opportunities for self-reliance of vulnerable populations and communities* Strengthen local capacity to implement and manage reconstruction and development activities* Promote awareness and sensitivity for gender equity and the protection of the speciallydisadvantaged (e.g., female-headed households, widows, orphans and the disabled) in the decision-makingprocess

Encourage trust building through community-based reconstruction and development activities andattend to the conflict resolution capacity at the communal level.

Findings from the social assessments should be reviewed with the community (including beneficiaries, civilsociety representatives, and local administration) to validate results and ensure that consultation and surveyresults were interpreted correctly.

Monitoring of performance in terms of social development outcomes

During project implementation, the PCU should regularly visit the community to monitor and evaluatecommunity participation (recommended with the aid of a social scientist, preferably the one who assisted

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with the initial participatory social assessment). Based on baseline information gathered in the initial socialassessment, the PCU should: i) establish regular consultations with stakeholders during implementation togain their insight on progress and what should be indicators; ii) review the community's in-kindcontributions and identify related problems; iii) assist in the solution of problems encountered; and (iv) gainlocal perceptions on the developmental impacts of the projects and potential improvements to existingstructure. Project design should remain flexible, able to change according to results obtained during themonitoring process.

An final evaluation exercise (social audit) should be undertaken, using PRA and BA techniques, as well asparticipant observation. The final evaluation should be based on issues raised during the initial socialassessment and those used on monitoring reporting forms. This final evaluation should be carried outhowever independently of the PCU and any consultants who may have been involved earlier in theassessment and monitoring process.

Social safeguard compliance

The resettlement policy does not apply to people who lose their assets as a result of a natural disaster.However, the policy would apply to those whose land and other assets may be acquired to rehabilitate thepeople affected by a natural disaster. A Land Acquisition Assessment will be performed, and subsequentactions will depend on its results. Also, in case of any preventive relocation away from disaster proneareas, if the relocating population provide their full consent to move (even though they have an option torefuse to move) the resettlement would be considered voluntary, and therefore, not subject to the provisionsof the resettlement policy.

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ANNEX 11A

Guidelines for participation in social assessment and monitoring and evaluation

A. Baseline social assessmentBefore the implementation of the housing project, an overall Social Assessment of the affected wilayashould be completed to establish baseline information that will help specify current needs and be needed forsubsequent monitoring and evaluation (M&E). The social assessment should be done in a participatorymanner, involving a wide range of stakeholders in consultations that utilize Participatory Rural Appraisal(PRA) and Beneficiary Assessment (BA) methods. The use of participatory methods is important, for they:* improve awareness of the project and related development issues;* enable the community generate and take charge of their own recovery and development plans;* create a greater sense of ownership; empower and build the capacity of community members;* allow local insight and perspective to be gained by implementers (both government and Bank);

increase the likelihood of sustainability.Ideally this participation will be in all phases of the project cycle: design, planning, implementation, andevaluation. The participation continuum begins with information-sharing, moves up to consultation, thenadvances to collaboration, and hopefully results in empowerment.

To facilitate the selection of actors to be involved in the project development process, and the assess thecapacity of those institutions that may be able to assist with implementation (including NGOs and othercivil society organizations), the social assessment should include a brief Stakeholder Analysis that outlines:* the main stakeholders (who are the potential beneficiaries; who might be adversely impacted; whoare the vulnerable groups; who is likely to support the project; what are the relationships between thestakeholders)* the interests of the stakeholders and potential impact of the project on their interests (what are thestakeholders' expectations; how will the stakeholders benefit from the project; what resources might thestakeholder be able and willing to mobilize; what stakeholder interests conflict with project goals)* the influence and importance of each stakeholder (their power and status; degree of organization;control of strategic resources; informal influence; power relations with other stakeholders; importance tothe success of the project)* how each may participate (according to 'their interests, importance, and influence; their capacity toassist with implementation; previous experience with development projects; particular efforts needed toinvolve important stakeholders who lack influence).

After the stakeholder analysis, the Social Assessment should examine the following issues:* Demographic and socio-economic factors* Social mobility, risk, vulnerability, opportunities* Socio-political context (including security, exclusion, crime, and conflict)* Social capital (trust, civic engagement patterns and levels); social cohesion (bridging social capital,government-community links); local leadership; links with external agencies (including nationalgovernment)* Institutional mapping and analysis (including rating of institutions in terms of trust, confidence,effectiveness, people's influence, and support during crisis)* Gender analysis (in terms of normal daily activities, responsibilities, ownership, roles, power,decision-maldng, resources and their use, etc.)

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Who has been able to best cope from the disaster, what are their characteristics and copingmechanisms* The wilaya's current conditions (access to basic services and market activities, living conditions,etc.), needs, priorities* Other ongoing development work in the wilaya and their perceptions of its success* How locals would change the way other development work has been implemented.

Social Assessments should also include a basic minimum needs (BMN) analysis, based on a sustainableuse of the local natural resources (environmental carrying capacity). This includes:* Agriculture: grazing, arable cropping, agro-forestry, irrigation.* Use of natural resources like forests, swamps, valleys and water resources for agriculturalpurposes, other income-generating activities.* Lodging in general: identification of needs necessary for safeguarding, rehabilitating orconstructing permnanent shelter.* Social and economic infrastructure: schools, rural health centers, water supply and sanitation;roads, bridges, etc.

Settlement policies: the dispersed pattem of households in the hills as opposed to the concentratedvillage model and their consequences for the use of natural resources.

Any other, like requirements for small scale enterprises or income generating activities.

This will help flesh out what social differences may exist within the wilaya, what the potential impact andadverse effects may be of project implementation, local perceptions of their conditions and previousdevelopment efforts, and encourage ownership of the project and its design and implementation.

The social assessment should take anywhere from 3-10 days depending on the expertise of the consultanthired and his/her familiarity with the wilaya. It is suggested that a local social scientist be employed toconduct the social assessment if possible; training may need to be provided to ensure quality but localfamiliarity will greatly enhance results. Ideally, this social scientist would also be available to the PCU (orsit on the PCU) during implementation and oversee the monitoring and evaluation process.

The importance of using both PRA and BA methods during this social assessment process stems from theneed to flesh out indicators that may be used for M&E derived from the stakeholders themselves, yet thatalso enable comparison with extemal projects. This means that PRA methods, such as visual tools preparedby participants and local-led analysis, should be combined with the semi-structured dialogue and itspossible external analysis that is typical to BA. By combining these approaches, the project will be able tosynthesize local perceptions of the project with the necessary standardized indicators.

Brief overview of participatory methods (PRA and BA) to be used for the social assessment

Participatory Rural Appraisal is a research methodology that incorporates locally led dialogue,stimulated by visuals done by participants, and local analysis of discussion and results. PRA samplingshould be done according to approximate stratification of the community by location, wealth, gender, andage. In addition to this dialogue, observation of participants, the community, and how the dialogue isreceived should be incorporated into PRA analysis. All findings from PRA should be cross-checked withother methods, and reviewed by participants for their comments.

PRA is an excellent tool for participatory analysis, however it does have a few limitations. The nature ofPRA itself makes it not very conducive to statistical analysis. And, since analysis is locally led, issues

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covered may differ from other project locations, thereby making external comparison difficult. Sensitivetopics should not be addressed in PRAs, as these are better discussed with individuals.

Primarv PRA techniques include:

A. Ranking (problems, preferences, wealth)Ranking can be done in different ways. One could apply pair ranking or preference ranking, direct matrixranking and/or wealth ranking. All three methods can be used having men and women ranking separately,or having those being member of a community-based group ranking as opposed to those not, etc.

Pair ranking: This is a technique to obtain the views of local people on the virtues and drawbacks ofdifferent categories such as tree species, crops, household tasks, activities etc. It allows to determinequickly the main categories, problems of preferences of individual households and farmers and enables thepriorities to be easily compared. The list of categories to be prioritized is drawn up from secondaryinformation sources. Each participant is asked to give the favored items in order of priority. Such could bedone by choosing which one is preferred from 2 at a time, until all possible pair combinations have beenpresented. The final ranking is obtained by laying out the categories according relative preference. Thistechnique is very useful for comparing preferences between different wealth groups, men and women,young and old etc.

Direct matrix ranking: This is a more refined version of the pair-wise ranking method. The criteria elicitedfrom the pair-wise ranking exercise are listed down one side of the matrix table and the items (e.g. crops)are listed across the top of the table. Informants are then asked to rank the items according to each criterionin turn. Matrix ranking is an useful tool to compare formal scientific evaluations of resources with localpeoples' own evaluation of the same resources.

Wealth ranking: There are inequalities in wealth in every commune, differences that determine people'sbehavior, coping strategies and views. As wealth can be a very sensitive topic this method should be donecarefully in order to produce the desired results. Wealth ranlking uses the perception of informants to rankhouseholds within their community according to overall wealth and ensures that any discussion of wealthdoes not take place with reference to specific households. Each household is assigned a number, while atleast three key informants from the community will be asked to independently sort each of the cards intowealth categories, using their own criteria. The average score of each household will finally determine theirranling according to wealth categories. As this method can be done with a great deal of participation on thepart of the community it can identify e.g. the vulnerable in a given community.All stakeholders, with their different attitudes and perceptions, should be taken into account in this topic.Based on the outcome of all rankings a community action plan per zone or sector could be drafted.

B. Mapping exercises (community, personal, institutional) and trend analysis (history, seasonal, dailyactivities)

Diagrams can capture and present information that will be less precise and less clear if expressed in words.They are most useful in helping to identify problems or opportunities in specific areas, time periods oractivities. The shared information they contain can be checked, discussed, amended if necessary and cantherefore create consensus and facilitate communication between different people and disciplines.

Thematic mapping: maps which reflect essential information on a specific theme in an area: indicating whathas been destroyed, what has already been rehabilitated, what needs to be (re)build, etc.

Seasonal or agricultural calendars: simple diagrams to indicate the seasonal features and changes over

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time. These diagrams are composed with the months of the year. The calendars are useful to identifycritical times in the year for each activity or phenomenon.

Activity profiles: are similar to seasonal calendars in that they are usually theme-specific, but they depictactivities over shorter periods, like a day, a week or at given times of the year.

The strategy used for most methods could be a group discussion, while agricultural calendars be used forspecific groups like livestock owners and cultivators, and individual mapping be used for informationcollection on household level. The key issue will be to prioritize the different interests, distinguishconcerning community resources between conflicts and perceived concerns, to recognize differentstakeholders (according to age, sex, vulnerability etc.), and identify the degree of importance and magnitudeto each of these stakeholders in order to arrive at a mutually acceptable conflict resolution.

C. Semi-structured interviewsSemi structured interviewing is one of the main tools used in PRAs. It is a form of guided interview,whereby only some of the questions are predetermined. PRA interviews are at most a checklist of topics tobe covered in note form as a flexible guide. Most questions will be formulated during the interview. Ifquestions are irrelevant to the specific situation, they can be skipped. Questions will usually come from theinterviewee's response, the use of ranking methods, observations of things around and the PRA team'sbackground and experience. One could interview individuals, groups and key infornants. Informnationobtained from individual interviews is more personal than information from group interviews and is morelikely to reveal conflicts within the community since respondents may feel they can speak more freelywithout their neighbors present.

D. Interviews/discussions with individuals, households, focal grouyps. and communitvFocused group discussions with officials, project staff, and beneficiary groups; flow diagrams and charts.

Random interviews with passers-by (e.g. during transect walks) may reveal in addition useful informationand unexpected viewpoints.

Interviewing key informants will be done to obtain special knowledge. A key informant is anyone who hasspecial knowledge on a particular subject. They are expected to answer questions about the knowledge andbehavior of others and especially about the operations of the broader systems. Key informants could betraders or merchants, midwifes, teachers and people who married into the community. Their informationshould be used to check information gained from the other PRA techniques.

Interview questions should always be ordered in an open-ended and unthreatening way, and shouldtherefore be in such a way that they require explanation rather than allowing an answer with 'yes' or 'no'.Respondents should be interviewed in comfortable settings and questions should be phrased in a way that isunderstood by all the people involved. All questions should only be asked one at a time. The subject shouldgo from general topics to more specific topics. Discussions on sensitive issues should be left for the lastpart of the discussion and one should avoid leading questions, as it is always up to interviewed group orperson to identify their constraints and possibilities.

Beneficiary Assessment produces qualitative information, which can also be quantified. BA bringstogether project stakeholders (beneficiaries, local administration, village elders and leaders, project staff,etc.) and initiates dialogue based on a pre-determined set of issues. It is action-oriented in terms ofproducing a specific outcome, i.e. project recommendations geared toward decision-makers and otherinvolved actors.

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However, BA, which produces information that is externally analyzed, may be limited in its level ofparticipation, for it rates relatively low on the participation continuum (consultation) and may be seen as avery extractive process if not conducted properly.

BA techniques include:

Participant observation (facilitator) - With participation observation, it is necessary to explain the reasonfor stay from the outset. In the community, strategic residence among the beneficiaries should be chosen,cultivating a few close contacts from diverse and major segments of the population. It is important not toget too close to any one group. Around 5-10 households should be visited regularly to discuss issues andconcerns for the project (based on a set interview guide). The facilitator who conducts the participantobservation should try to participate in organizations and activities to be appreciated and identified, but notbe seen as over-committed. Independence should be retained. All observations and interview results shouldbe documented.

Conversational interviews are conducted with beneficiaries, program managers, field staff, communityleaders - based on a semi-structured conversation guide outlining key issues to be covered.

Focus group discussions with take place with community members and other involved actors. A few keytopics should be identified from the outset (watch out for biases from each group). People should benotified well in advance of the event, which should be held in a conducive, comfortable atmosphere. Thediscussion should begin with brief introduction explaining purpose of meeting. The facilitator should keepthe discussion on track, yet be sensitive to each attendees' participation. Issues of a more controversial innature should be left to individual interviews (or left to be discussed near the end of the event). The groupsshould be composed of 4-12 people with common concerns. The discussions should not last longer than afew hours.

A combined PRA and BA technique approach is an important tool in order to obtain active communityparticipation in needs identification, planning and project formulation.

B. Participatory Monitoring and Evaluation

T'he participatory monitoring and evaluation (PM&E), should build on the relationships and conclusionsalready established in the initial social assessment. By allowing for local participation, communitymembers aren't just sources of information, but again have a chance to build capacity and ownership inrelation to the project and its development; and help to formulate and implement corrective action duringthe project's implementation. By continuing to combine PRA and BA methods, evaluation can take placeby the stakeholders themselves, while evaluation results are standardized for comparison. In order forcommunities to be successfully involved in PM&E efforts, some brief related training must occur in thePRA affiliated with the initial social assessment (who does it, why important, how and what to do withresults); and baseline information on the community before the project must exist.

PM&E fulfills conventional functions of M&E for project impact assessment and management andplanning, but it also allows for the managing and resolving conflicts - a skill transferred to locals that willhelp long past the project's end date. In addition, PM&E strengthens self-development initiatives in villagesand provides public accountability of local and national government programs to communities.

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PM&E consists of data collection registration, compilation, analysis and then sharing it again with thosewho are to use the information. The key question for PM&E efforts is who is going to interpret theinfonnation and who will use the information.

Information derived from PM&E should be integrated into project progress reports undertaken by the PCU.Not only will PM&E help verify technical and financial reports, but it will also get perceptions of how thecommunity views the development project, and its effectiveness, problems, local involvement, and impact.

Monitoring involves observing change and on-going assessment of activities and trends, while evaluation iscomprised of the assessment of strategic issues, changes, achievements, and impact (efficiency orprograms). For PM&E to truly be effective, it must include four core principles: participation, learning,negotiation, and flexibility.

People's participation in M&E however is mitigated by several factors, among those including:* Their perceived benefits (and partial or short term costs) to participating in M&E* The relevance of PM&E to the priorities of participants* Quick and relevant feedback of findings* Attempting to meet expectations that arise from the ongoing PM&E process (or at least addressthese concerns if they cannot be met). This helps ensure long term participation.* Not overly focusing on either short term or long term needs, but balancing efforts on addressingboth* Degree of capabilities, leadership, and identity of the groups involved, including openness tosharing power* Local political history, as this influences society's openness to stakeholders initiatives* Incentives to make the PM&E possible (pens, books, paper, etc.)

Some indicators for PM&E are chosen by the participants. This is an essential process for it helps buildconsensus about the vision for development in the community. In addition, a set of indicators to standardizeevaluation must also be selected. However, it is important not to utilize too many indicators for monitoringand evaluation, for it can obfuscate and misdirect the exercise. Instead, there should be relatively few,precise indicators which cover a broad base of areas related to each sub-project and the project overall. It isalso important to make sure that these few indicators meet the different information needs of thoseinvolved, including short and long term aspects, general development process issues and concreteinitiatives, and qualitative and quantitative standards.

Pointers for participatory M&E (which uses both PRA and BA methods):Need to identify a lead facilitator for workshop / seminar (PCU or local social scientist)Initiate a process that will allow for the self-organization of PM&EIt should be undertaken on a continuous and iterative basisMeasure process and outputs (try to integrate quantitative data from the technical reports with

qualitative data derived from PM&E)Compare the community before and after the project, illustrated by mapping, ranking, and/or

diagram exercisesWhat has been the development impact - has access to services changed (health, education, water,

sanitation), socio-economic factorsWhat has been the institutional impact (stakeholder/institutional analysis)Has the project effected levels and density of social capital, assess by examining factors such as

trust and social cohesionDevelop action plans for any next steps or corrective action and identify actors involved (and their

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responsibilities)* Address issues of sustainability, will the project's end products (infrastructure, disaster and riskmanagement groups) be able to be sustained after the its completion?* Disseminate results and get feedback from community and actors involved (includingdecision-makers)

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AdditionalAnnex No.: 12

Ain Temouchent Earthquake Emergency Reconstruction ProjectEnvironment Management Plan

A OverviewI Context and project objectives

a) Context of the Ain Temouchent situation after the earthquakeAin Temouchent is a city located in western Algeria 75 km south-west from Oran, the largestcity in western Algeria, and which has given its name to the wilaya (Department) of AinTemouchent populated by nearly 326.000 inhabitants. The wilaya is divided into 28municipalities. The capital of the wilaya has a population of around 65.000 inhabitants.

The economy of the wilaya of Ain Temouchent is based mainly on agriculture with minorindustrial activities.

On December 22, 1999 the Ain Temouchent area was hit by an earthquake of 5.5 magnitudeon the Richter scale. Three municipalities were particularly concerned by the damages, AinTemouchent, Sidi Ben Adda and Ain Tolba. Twenty seven persons died in the collapse ofbuildings and three hundred were injured.

k Scope of interventionThe government of Algeria responded rapidly to the situation and set up a rescue organization(ORSEC) in order to provide immediate assistance to the people in need. Crisis cells wereestablished both at the local and the central level.

At the request of the government of Algeria, the Bank has prepared an emergency projectaimed at contributing to the reconstruction of the area and at strengthening the institutionalcapacity needed in the event of future catastrophic events through the design and financing ofactions organized in the following six main project components:

Component A: Disaster Organization and Risk ManagementTechnical assistance in order to improve the institutional capacity for emergency managementin Algeria especially with regard to disaster organization and risk management.

Comionent B: HousingFinancing of the residential housing reconstruction program in the urban (3400 units) andrural (800 households) areas affected by the earthquake

ComPonent C: Technical InfrastructureDesign, supervision and investments towards the restoration of the essential publicinfrastructure such as water supplies, sewerage system, roads.

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Component D: Social InfrastructureDesign, supervision and investments towards the restoration of damaged public buildings suchas schools (15 have been reported as heavily damaged) and administrative buildings

Component E: Project ImplementationAn Interninisterial Committee for Coordination and Followup for Reconstruction of AinTemouchent (CICS), constituted by essentially the members of the existing crisis cell at thecentral level will be established for overall guidance and supervision. At the local level, aproject coordination unit will be set up and will report to the Wali of Ain Temouchent.

2 Project environment categoryAccording to the Bank's Safeguards policies, the project has been rated as a category Bproject with regards to its expected environmental impacts. This project being an emergencyoperation will be the subject of an enviromental assessment process in such a manner as notto slow down its implementation. Environmental concerns will be addressed within theEnvironmental Management Plan designed to help the PCU and the local government inmeeting environmental requirements during project implementation.Also, environmental impact assessments will be conducted in case of construction of a newwastewater facility as well as for the siting of the housing sub-project.

3 Algeria's institutional framework with regards to environmenta) Existing national regulations on environment

A great deal of regulation exists in Algeria in relation with environmental protection. Thebasic law is the law no. 83-03 (February 5, 1983) establishing the principles of environmentalprotection in Algeria. The most important regulation is the decree no. 90-78 (February 27,1990) that introduced the environmnental impact assessment as a mandatory process prior tooperation approval of potentially environmentally harmful projects.

Another decree of importance is the decree 93-160 (July 10, 1993) regulating wastewaterdischarge from industries.

The Water Act no. 83-17 (July 16, 1983) amended in 1996 also includes important sectionson water resource management including water quality.

Q) Organization of the national environment authoritvSince late 1999, a General Directorate of Environment is the main national authority for environmentprotection and is part of the ministry of Public Works, Land Planning, Environment & Urbanism.The General Directorate of Environment is concerned by both policy making and policy implementation.In each Wilaya an inspectorate of Environment is reporting to the General Directorate and is also incharge of implementing the national policies at the regional level.

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c) Existing national regulation on NGOsThe NGO's are traditionally very active in environmental protection. The law in force on nonpolitical associations has been adopted in December 1990 (Law 90-31). The law distinguishesbetween local an national associations. Many associations have been created both at thenational and local level which are totally or partly oriented towards the protection ofenvironment. Their main difficulties are financial and managerial. Nevertheless, theseassociations represent potential intermediaries with local populations that could be of greathelp after proper selection and capacity improvement.

4 Experience gained from previous similar projects in AlgeriaIn August 18, 1994, an earthquake struck the region of Beni Chougrane in the wilaya ofMascara, in the western part of Algeria. The Algerian government requested from the WorldBank that an emergency reconstruction project be designed and financed with the principalobjective of rebuilding, in the shortest possible time, the economic, social and physical assetsthat were destroyed by the earthquake. The various components of the projects dealt withreconstruction and repairs of facilities in the following sectors: a) education, b) housing, c)agriculture, d) public health, e) roads f) water supply and sewerage, as well as g) earthquakehazard reduction and prevention, and h) social rehabilitation. The positive imnpact on theenvironment was set also as an important objective.However, this project has been recently terminated and although the overall objectives werereached environmental issues have not been given the appropriate consideration. One of themain sub-component with direct environmental impacts, i.e. the wastewater collection andtreatment system has been lagging and has not yet been completed (two aerated stabilizationlagoons in Hacine and Bou Hanifia, the latter being a renown thermal bath site, with acapacity of, respectively, 20.000 and 60.000 inhabitants equivalent). Although the technicalaspects were given proper consideration, weak ownership did not allow for an efficientmanagement of the sub-component. The limited prerogatives of the project management unitdid not allow for stimulation of the other stakeholders. There has been practically noinstitutional strengthening during the project maybe because of the difficulties entailed by thesecurity conditions at the time.

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B The Environmental Manaeement PlanFor the Am Temouchent Reconstruction project the implementation of an EnviromnentalManagement Plan will improve the quality of the project and will ensure participation of otherstakeholders, mainly the Environment protection authority as well as the local populationeither through direct participatory approach or through local dedicated NGO'sThe Environmental Management Plan will encompass three kinds of measures:

- Strengthening of the capacity to address environmental issues that should be dealt with indisaster response programs.- Mitigation of the impacts of the reconstruction activities (housing, technical facilities and publicbuildings).- Monitoring of the environmental action plan to make sure that the projects components will beimplemented in an environmentally acceptable manner with no major deviation from good practicesand in compliance with the recommended mitigation and/or compensation measures.

To address the issue of proper siting of the housing agglomeration, and in case ofconstruction of a new wastewater treatment plant, impact assessments will be conducted in amanner satisfactory to the Bank.

The implementation of the Environmental Management Plan will be the responsibility of theclient under the Bank's supervision. The ToR for the impact assessments will be approved bythe Bank. The implementation of the EMP will be an integral part of the PCU's prerogatives.An environmental engineer will be part of the PCU. Periodic project progress report willinclude chapters on monitoring of environmental issues.

5 Institutional component of the EMPThe central point of this component is the improvement of institutional capabilities both at thelocal and the central level in order for the targeted institutions to be able to face up futurecatastrophic events in a more efficient manner integrating environmental considerations formore sustainable solutions.

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EMP component Actions Resources needed

Institutional Modification of the emergency Team of three experts - studycapacity procedures in order to integrate the and presentation (4.5 men.month)strengthening dimension of environmental protection in

case of disaster Technical assistance of expertDesign and implementation of a (social scientist or specialist in

communication strategy and population public participation), 1 man.monthparticipation 5 days taining of 5 persons- Integrating in the training program a (local including inspectorate ofcomponent on environment related aspects environment) and 10 personsof emergency program, including (central including DGPC andappropriate use of GIS tools and valuation General Directorate ofof environmental costs Environment), with the assistance

of three consultants(Environmental specialist, GISspecialist, Environmentaleconomist)

6 Environmental mitigation:The following mitigation measures (not to be considered complete) related to expected impacts will beimplemented in the course of the project.

Type of Potential impacts Mitigation measures ResponsibleSubproject Agency

Housing - Negative impacts of the - Dismantling of tent camps PCU andprovisory facilities after housing reconstruction. public works- Negative impacts due to - Rehabilitation of camp sites departmentimproper facility of the new - Clean-up of constructionhousing agglomeration rubbles and debris

- Rehabilitation of selectedareas within the city throughplanting trees and landscapinggreen areas- Impact assessment of thenew site for the housingsub-component

Technical - Clogging of natural - Maintain ditches PCU andinfrastructures drainage channels public works(Roads - Dumping of construction - Proper disposal of departmentrehabilitation) wastes and accidental spills of construction wastes

machine fuels, etc.

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Technical - Cross contamination - Audit of the wastewater PCU and waterinfrastructures sewage and water lines treatment plant by specialist works(Water supply - Improper disposal of - Audit of the wastewater departnentand sanitation) construction debris treatment plant by three experts

- Pollution of water (civil engineer, waterworkscourses specialist and sanitary engineer)

- Proper disposal ofconstruction wastes- Rehabilitation orconstruction of a newwastewater facility

Social Health hazards due to poor Rehabilitation of the sanitary PCU andinfrastructures sanitation facilities along with the schools public works(schools and and other public facilities departmentpublic rehabilitation (Integrate in thebuildings) technical specifications in

works procurement)

7 Environmental monitoringMonitoring will be essentially the responsibility of the PCU along with the concerned technicalDepartments of the Wilaya. The table below indicates the proper indicators to be used as well as thefrequency of the reporting or monitoring actions.

Type of Subproject Monitoring Indicator Responsibility Frequency

Housing - Number of tents dismantled PCU 3 months

Technical infrastructures - Kilometers of road properly PCU 3 months(Roads rehabilitation) rehabilitated

Technical infrastructures - Kilometers of water supply lines PCU 3 months(Water supply and constructedsanitation) - Kilometers of wastewater lines

constructed- Efficiency of wastewater treatmentplant and/or progress towardscompletion of the new wastewatertreatment plant

Social infrastructures - Number of sanitary facilities PCU 3 months(schools and public (latrines or lavatories) builtbuildings)

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C Implementation schedule and cost

The EMP implementation would be integrated into the overall schedule for the proposed project and atimetable for key activities is provided in Table 1. It is currently estimated that the EMPimplementation would cost US$81,500 for consultants, training activities and other incurred costs aspresented in the section on mitigation measures and monitoring. These costs are included in the costcategories of Component E.

This total cost includes provisions for environmental impact assessment in view of the proper siting ofthe housing agglomeration sub-component and also for the wastewater treatment plant in case it isdecided to build a new facility.

Table 1: EMP implementation schedule

Year I Year 2 Year 3

Q1 Q2 Q3 Q1 Q2 Q3 Ql Q2 Q3Q4 Q4 Q4

Institutional capacity oooostrengthening

Environmental Impact oooooooassessment

Mitigations actions oooooooooooooooooooooooooo

Monitoring andevaluation oo oo oo

Training oo

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Table 2: Cost estimate for the EMP implementation

Activities Total cost in US$

Training of staff and major stakeholders 25 500

Technical assistance 25 500

Environmental imnpact assessment and/or audit 15 000

Environrmental engineer in PCU 16 500

TOTAL 81500

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