Document of The World Bank

FOR OFFICIAL USE ONLY

Report No. 37408-LR

PROJECT PAPER

ON A

PROPOSED ADDITIONAL FINANCING (GRANT)

IN THE AMOUNT OF

SDR 11.20 MILLION (US$16.50 MILLION EQUIVALENT)

TO THE

REPUBLIC OF LIBERIA

FOR THE

EMERGENCY INFRASTRUCTURE PROJECT SUPPLEMENTAL COMPONENT (EIPSC)

SEPTEMBER 29,2006

Transport Sector Country Department 10 Africa Regional Office

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CBD CBO EC EIP EMP GIS/GPS GOL iPRSP LICUS LWSC MCC MOF MPW NGOs PFMU S I U sc S W M TFLIB LIRP UN UNDP UNHCR UNMIL WB WWTP

CURRENCY EQUIVALENTS (Exchange Rate Effective September 20,2006)

Currency Unit = Liberian Dollars (LRD) 1.00 LRD = US$0.17 US$l.OO = 59.50

FISCAL YEAR July 1 - June 30

ABBREVIATIONS AND ACRONYMS

Central Business District Community Based Organization European Commission Emergency Infrastructure Project Environmental Mitigation Plan Geographic Information System / Global Positioning System Government o f Liberia Interim Poverty Reduction Strategy Paper Low Income Countries Under Stress Liberia Water and Sewer Corporation Monrovia City Corporation Ministry o f Finance Ministry o f Public Works Non-Governmental Organizations Project Financial Management Unit Special Implementation Unit Supp 1 ement a1 Component Solid Waste Management Trust Fund for Liberia Liberia Infrastructure Rehabilitation Project United Nations United Nations Development Program United Nations High Commission for Rehgees United Nations Mission in Liberia World Bank Waste Water Treatment Plant

DATA S H E E T

Date Country

Project Name

Project ID

Borrower Responsible Agencv

September 29,2006 Team Leader Liberia Infrastructure

Sector Director/ Manager

Emergency Infrastructure Country Director Project Supplemental Component P 103276 Environmental

Government o f the Republic o f Liberia - Ministry o f 1 UNDP, MPW

Category

B e n Gericke Michel Wormserl C. Sanjivi Rajasingham

F o r Loans/Credits/Grants: Total Bank Financing (US$ million) Proposed terms:

Mats Karlsson

16.5

B

Source Borrower IBRDDDA

nance

Local Foreign Total (US$ million) 0.0 0.0 0.0 7.0 9.5 16.5

Revised Project Development Objectives/Outcomes

Total

The development objective o f the Emergency Infrastructure Project has not been revised and i s to provide the Government with emergency support to restore pr ior i ty infrastructure.

7.0 9.5 16.5

FOR OFFICIAL USE ONLY

This document has a restricted distribution and may be used by recipients only in the performance o f their off icial duties. I t s contents may not be otherwise disclosed without Wor ld Bank authorization.

REPUBLIC OF LIBERIA EIP SUPPLEMENTAL COMPONENT

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IX

Table of Contents

BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING ............................. 2

SECTOR ISSUES ...................................................................................................... 3

PROPOSED CHANGES ............................................................................................. 4

CONSISTENCY WITH CAS ........................................................................................ 8

APPRAISAL OF SCALED UP PROJECT .................................................................... 9

EXPECTED OUTCOMES ......................................................................................... 13

BENEFITS AND RISKS ............................................................................................ 14

FINANCIAL TERMS AND CONDITIONS FOR THE ADDITIONAL FINANCING ............ 14

CONDITIONS OF DISBURSEMENT .......................................................................... 15

TABLES .......................................................................................................................... 16

ANNEXES ....................................................................................................................... 19

I BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING

1. Background. During the years o f conflict, Liberia’s infrastructure was nearly completely destroyed and the majority o f services ceased being rendered. Fol lowing the conflict, the Bank resumed i ts presence in Liberia and took o n a leadership role in the areas o f infrastructure, economic management and community-driven development. In the f ie ld o f infrastructure, the Bank undertook technical assessments and feasibility studies in five infrastructure sectors with financing f rom the Trust Fund for Liberia (TFLIB). TFLIB funding also supports an $8.5 mi l l ion project to rehabilitate the port and airport (the Liberia Infrastructure Rehabilitation Project, LIRP), and the L ICUS Trust Fund finances a small p i lot program that uses UNMIL, the UNDP and the Bank to repair roads using labor-intensive methods. In June 2006, IDA funding was made available through a pre-arrears clearance grant o f $30 mi l l ion for an Emergency Infrastructure Project (EIP). I t i s this IDA project for which additional financing i s now being sought in order to include a labor-intensive component that will deliver rapid and visible results during the coming dry season.

2. Technical assessments under TFLIB established that failure to address critical needs in infrastructure would cause serious disruptions in the provision o f basic services (water, port, airport, roads). Considering the large amount o f funding required to address the infrastructure gaps in the country, both projects, the EIP and the LIRP, seek to rehabilitate only the most critical priority infrastructure and ensure that some minimum level o f operations continue without interruption. In particular, the EIP will support the repair o f critical road links along 465 km o f primary roads, the construction o f 6 major bridges and repair o f about 65 bridges, reinstatement o f potable water production as wel l as support to the emergency electricity generation project in Monrovia. The EIP started disbursing in September 2006 (through a Project Preparation Facility). All effectiveness conditions are currently being addressed by the Government o f Liberia (GOL) and effectiveness date o f October 13, 2006 i s expected to be met as planned.

3. The LIRP proposes to invest in critical areas o f the port and airport o f Monrovia. The project i s expected to be effective in October 2006 and start disbursing shortly thereafter. Implementation o f the bulk o f activities under both projects will take place during the November 2006 - June 2007 dry season which i s the most appropriate period to perform construction works.

4. Rationale. Three years into the peace process have not provided the tangible benefits expected. The devastated infrastructure o f the country has not been rehabilitated and provision o f public services continues to be erratic. Despite efforts by the Government and i t s Development Partners, lack o f employment, l imi ted economic opportunities and continuous poor living conditions for the majority o f the population are fueling the prospects o f a looming social and economic crisis. In the absence o f large-scale financial flows pr ior to arrears clearance, the lack o f tangible benefits to large sections o f the population f rom peace becomes the greatest threat to stability. The Liberian Government has realized this challenge and has requested Bank’s assistance for a quick-impact and labor-intensive program. Whi le full restoration o f damaged public assets will take time and will require large amounts o f funding, quick impact results will secure minimal restoration o f public infrastructure and provide immediate benefits to the population.

5. The Government o f Liberia has requested the Bank to provide additional funds in order to scale up activities under the EIP, and in particular, to rapidly rebuild critical sections o f the rural road network to improve connection between the rural areas and the urban centers and rehabilitate urban infrastructure whi le maximizing temporary j o b creation. The Government considers the Bank to be a key partner through provision o f advice based on i ts global experience o f post-conflict reconstruction, and i t s abil ity t o provide needed funding to support i t s infrastructure program which i s essential to jump-starting the economy and improving the living conditions o f sections o f the population. Through i t s involvement in an array o f on-going consultations and projects in Liberia, the Bank has already gained operational experience in developing mechanisms to deliver infrastructure rehabilitation programs, which has been

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incorporated into the design o f this component. Additionally, the Bank has substantial experience o f similar emergency reconstruction programs using labor-intensive public works in other post conflict countries (among others, Afghanistan, Sierra Leone, Southern Sudan, East Timor, Bosnia- Herzegovina, Burundi, West Bank and Gaza).

6. In particular, the Bank responded to the Government’s request t o rapidly rebuild critical sections o f the rural and urban road network by building o n i t s ongoing experience working with the United Nations Mission in Liberia (UNMIL). Under the proposed component design, available in-country UNMIL equipment and engineering capacity will be used to significantly shorten contractors’ mobilization time and al low immediate impact in upcountry areas. Works will start as early as November 2006 and continue throughout the dry season. Bank funds are expected to catalyze additional donor financing (mainly in the form o f U N M I L ’ s equipment and staff) and set the tone for jo in t works with the UN Mission.

7. The urban sub-component o f the proposed SC will build upon TFLIB-financed feasibility studies, designs, and available bidding documents in the areas o f sewagehanitation, drainage, and solid waste management. It will initiate a large scale urban solid waste clean-up program demonstrating clearly visible urban environmental improvements o f large sections in the capital city.

I1 SECTOR ISSUES

8. Roads. Most rural roads in Liberia are unpaved, made o f local lateristic materials. During the rainy season, segments o f the roads become partially or completely un-passable causing not only the substantially higher transport costs o f passengers and cargo, but also resulting in total isolation o f adjacent communities. Urban roads in the Central Business District (CBD) o f Monrovia are in a very poor state especially at the end o f the rainy season being additionally damaged by months o f heavy rain and flooding.

9. Sanitation. Monrovia i s served by a combination o f a central sewer system and on-site disposal facilities. Due to the failure o f the public piped water service and intermittent maintenance for a number o f years, the sewerage infrastructure has deteriorated and i s operational only in a few locations and operating o n gravity. The original design o f the system depended to some extent on four pumping stations a l l o f which are out o f operation today. The ci ty wastewater treatment plant (trickling fi l ter system) has been non-operational for 15 years and i s in a state beyond repair. The operation and maintenance o f the sewerage network i s the responsibility o f the LWSC, which has l imi ted technical and financial capability to keep i t operational.

10. Drainage. The drainage system consists o f open channels and underground pipes. The system i s in deplorable state with drains blocked or broken forcing the water onto the surface where it floods roads and neighborhoods causing extensive damage, year in and year out. T h i s i s especially problematic during the rainy season when heavy rains flood the entire city, also creating feeding grounds for mosquitoes in low-lying areas. The drainage system i s under the responsibility o f the MPW, which has extremely l imited capacity and machinery to maintain it.

11. Solid waste. Uncollected solid waste has accumulated in multiple uncontrolled areas o f Monrovia, including large, busy pedestrian down-town areas, market places, and r iver banks. These locations are reasonably we l l defined and identified. The estimated amount o f accumulated waste i s about 60,000 cubic meters (rough estimate) and i s a source o f environmental and health hazards. The piles o f garbage are causing traffic jams and are visually disturbing. Scraps o f abandoned vehicles can be found everywhere in Monrovia and add to the waste accumulation throughout the city. The currently used dump site i s unacceptable as a permanent landf i l l site as surface water and leachate f low into and pollute the Metsurado River. In addition, the site i s l imi ted in space although, as a temporary measure, it could be

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extended by including areas o f the non-operational (Waste Water Treatment Plant) WWTP adjacent to the current dump site. Solid waste management i s the responsibility o f the MCC, which has minimum equipment to run the system.

I11 PROPOSED CHANGES

12. The inclusion o f the SC will not change the objective o f the Project. The additional funding wil l finance the scaling up o f critical activities under the original project, enhancing i t s development impact. The SC will include: (i) basic rehabilitation o f selected rural roads sections, mostly concentrating o n the construction o f small temporary bridges, culverts, and improvement o f critical sections; in Monrovia c i ty roads resurfacing and rehabilitation o f selected urban streets, mainly in the CBD; (ii) selected urban works in the areas of: (a) solid waste; (b) drainage; (c) sewage / sanitation; and (d) other highly visible urban sub-projects; and (iii) limited capacity strengthening o f the Monrovia Municipal Corporation, acquisition o f critical equipment, supervision and project management. Mult ip le small-scale urban sub- projects not yet completely identified but targeted to specific needs o f the Municipality o f Monrovia and the Government will be also implemented.

13. Sub-component A: Basic rehabilitation o f selected prioritized sections o f the rural road network and selected Monrovia city streets and roads (US$ 7.08 million): T h i s component will include (a) the rehabilitation o f critical rural road sections across the country, involv ing mainly reinstatement o f culverts and bridges which have collapsed or have been seriously damaged and shaping o f roads prism; and (b) the resurfacing o f the streets’ pavement, fixing potholes and cleaning and unblocking o f affected road drainage along the selected ci ty streets.

14. Implementation o f A(a) - rural roads (four out o f f ive roads)- will be carried out by UNDP office in Monrovia through the existing UNMIL engineering equipment and available engineering and managerial capacity based o n the experience developed during the ongoing UNMIL/WB pi lo t road rehabilitation project funded by the L ICUS Trust Fund; and will be complemented by the private sector for one road. Rapid execution o f roads i s essential considering the climatic conditions existing in Liberia where major road works can only be executed during the dry season (November 2006 -June 2007), hence the choice o f the UNMIL and o f the execution arrangements.

15 Early discussions with UNDPAJNMIL professionals (civil and military engineers) indicate that several rural and urban roads appear as accepted (by the GOL/UNDP/UNMILiWB) candidates for the targeted rehabilitation uti l izing the available personnel and machinery located along these roads. Criteria for their selection have been agreed upon and the final decision has been made by MPW, UNMIL and the Bank (see Annex 2). Subsequently, a detailed indicative investment program will be presented by the team for review and approval by MPW, UNMIL, and the Bank (to possibly include a GIS/GPS mapping layouts o f planned interventions for the destroyed road infrastructure).

K e y activities will include among others:

i) Rehabilitation and/or construction o f temporary type o f bridges;

ii) Replacement o f substandard water crossings by new culverts; iii) Cleaning and rehabilitation o f roadside drains;

iv) Pothole filling and spot resurfacing in critical areas;

v) Road segments shaping to ensure adequate runof f o f rainfall;

vi) Drainage clearing and construction; and

vii) Brushing to control roadside vegetation.

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16. Implementation o f A(b) - Monrovia city streets, as wel l as one rural road f rom Sub-Component A(a) - will be carried out by MPW, through their Special Implementation Unit (SIU) which has already proven itself in the o n going operation o f EIP. About US$2 mi l l ion o f the above Sub-Component will be earmarked for this activity including the resurfacing o f the road pavement along the selected streets, fixing potholes and cleaning and unblocking o f affected road drainage along the selected ci ty streets, and the rehabilitation o f roads in Monrovia, mostly in the CBD. A preliminary l is t o f the c i ty streets to be re- surfaced and improved i s provided in Annex 2. A final l i s t i s currently being compiled and will be finalized by October 15,2006 fol lowing the end o f the current rainy season. The intention, as in the rural roads works, i s to utilize as much o f the equipment available by UNMIL, leveraging the impact o f the Bank’s resources, and use o f private sector.

Table I: Indicative Cost of Civil Works -Rehabilitation of critical rural roads

Activity (a) Rehabilitation of critical rural road sections across the country

Road Link/ Priority Length (lan) Implementing Agency

1. Voijama-Foya or tbd. 68 UNMIL

2. Pleebo- Barclayville 69 Contractor

3. Zwedru - Fishtown 136 UNMIL

4. Ghanta - Saclepea 40 UNMIL

5. Saclepea -Tappita 61 UNMIL

Subtotal:

Act iv i ty (b) Resurfacing o f the streets and associated drainage

1. City Streets 18km overlay Contractors

TOTAL Civil works and pot-fi l l ing

Preliminary Cost (US$)

1.36 mi l l ion

1.37 mi l l ion

1.35 mi l l ion

0.40 m i l l i on

0.60 mi l l ion

5.08 mi l l ion

2.00 mi l l ion

7.08 million

17. Sub-Component B: Urban Infrastructure Rehabilitation (US$7.02 million): This component will engage in simple rehabilitation works in urban areas, mainly in Monrovia. For most o f the proposed activities bidding documents have already been prepared; thus they could be launched fairly quickly; others can be implemented easily by small contractors, international NGOs, and Community Based Organizations (CBO). The types o f works which are envisaged include:

a) Rehabilitation o f public toilets;

b)

c)

d)

Repair o f selected and l imi ted main and secondary gravity lines in the urban sewer network;

Cleaning and repair o f surface drains and underground pipes o f the urban storm drainage system;

Large-scale collection o f accumulated solid waste and associated activities such as public outreach campaigns, procurement o f garbage skips, transfer trucks and equipment for the solid waste disposal site, l imi ted capacity building and institutional strengthening at the Monrovia City Corporation. The rationalization o f the S W M disposal system through activities such as: (i) building o f capacity within MCC; (ii) purchasing of critical equipment

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to maintain the disposal site; (iii) funding to assist the contracting out o f S W M services to local entrepreneurs for the establishment o f a very basic level o f S W M services for a period o f two years. T h i s might also include the acquisition o f critical equipment such as SWM collection skips appropriate for neighborhood S W M storage.

Small, visible urban works, such as repair o f market places and painting o f public buildings.

e)

18. The above activities, whenever possible, would be packaged into relatively small contracts (averaging $100,000) to enable the local contracting industry to participate in and execute most works. Simple tasks which do not require detailed engineering prior to their execution (e.g., garbage collections and drainage cleaning) will be undertaken immediately utilizing unskilled labor through Community Based Organizations (CBOs) and local private entrepreneurs through the supervision o f the executing agency and the Liberian Water and Sewer Company for sewers and water (LWSC), the Ministry o f Public Works (MPW) for drainage, and the Monrovia City Corporation (MCC) for solid waste.

Table 2: Indicative Cost of Urban Civil Works- Rehabilitation of Urban Infrastructure

Activity (b) Rehabilitation of urban infrastructure:

Activity Number o f Contracts Implementing Agency Preliminary Cost (US$)

1. Sewerage rehabilitation 7 Contractor 0.53 mil l ion

2. Public toilet rehabilitation 6 Contractor 0.33 mil l ion

3. Drainage rehabilitation 10 Contractor 1.90 mil l ion

4. Solid waste mgmt 17 Contractor 3.3 5 mill ion

5. Other priorities tbd Contractor 0.82 mill ion

6. Public awareness and tbd training campaign

tbd 0.09 mill ion

TOTAL Civil works 7.02 million

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19. Sub-component C: Construction Supervision and Project Management (US$ 2.54 million, US$ 1.0 of which will be financed b y TFLIB). In Table 3, the estimated cost for implementing both sub-components includes:

Table 3: Estimated cost for implementation

Activity (c) Construction Supervision and Project Management

Act iv i ty Implementing Agency

Construction periodic technical audits supervision for Rehabilitation of critical rura l road sections across the country under implementation by UNDPAJNMIL.

MPW through a Contractor

Construction supervision, technical and financial for Rehabilitation of critical rura l road sections across the country under implementation by MPW.

MPW through a Contractor

Construction supervision, technical and financial for Resurfacing of the streets pavement, fixing potholes and cleaning and unblocking of affected road drainage along the selected city streets to be carried out through MPW.

MPW through a Contractor

Urban works detailed design and supervision (to b e financed by the Bank executed TFLIB)

Wor ld Bank

UNDP administrative fee UNDP

Other (Safeguards Consultancies) UNDP

TOTAL Construction Supervision & Project Mgmt. -

Preliminary Cost (US$)

0.30 mi l l ion

0.15 mi l l ion

0.14 mi l l ion

1 .OO mi l l ion

0.90 mil l ion

0.05 mi l l ion

2.54 million (1 -00 m i l l i on o f which to be financed by TFLIB)

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Other Complementary Changes to EIP implementation arrangements are presented below:

Table 4: Summary of Other Complementary Changes

Description Institutional arrangements - Project Management

Project Costs (See Table 7: Project Activity and Cost) Financing Plan

Financial Management (FM) (See Annex 6: MOU between W D P and World Bank on FM) Disbursement arrangements (See Table 9: Detailed Disbursement Arrangements)

Procurement (See Table 8: Summary of Procurement Arrangements) Closing Date Implementation Schedule

Remarks The proposed SC i s expected to uti l ize a combination o f (i) third party execution through UNDP; and (ii) existing arrangements under the EIP. Costs comprise additional grant o f U S $ 16.5 mill ion.

The financing plan for both projects combined will be adjusted to reflect the changes in financing sources discussed in this paper. With third party execution, UNDP guidelines apply. With GOL execution, n o changes in FM arrangements f rom original project in original agreement. N o changes in general disbursement procedures f rom original agreement whenever Government execution i s utilized. With third party execution, disbursement arrangements will be outlined in the Disbursement Letter. Category schedule will clearly show the activities to be financed under UNDP. Procurement procedures to remain the same with terns provided for in the original loan agreement. With third par ty execution, UNDP procurement guidelines apply. Closing date remains the same as for EIP (June 30,2010). The proposed component will be implemented over a 24 month Deriod.

With third party execution activities, U N D P will use i t s own procurement procedures following approval by Bank’s management. This will allow for the most expedient executionof the highly time- sensitive activities in a situation where most in-country actors are not yet familiar with Bank procurement procedures. I t wil l also facilitate the process o f contracting multiple small local contractors under NCB.

I V CONSISTENCY WITH CAS

21. The Country Reengagement Note (CRN) endorsed by the Board o f Directors in March 2004 outlines three areas for Bank’s engagement in Liberia, namely economic management, community development, and infrastructure. The Interim Strategy Note (ISN) expected to replace the CRN i s currently being prepared and also highlights infrastructure as a prime area for Bank’s involvement. The I S N i s expected to support further investments to rehabilitate and rebuild the country’s infrastructure base and restore basic services. Since high unemployment in Liberia i s a particular concern o f the Government, the draft I S N recommends that, t o the extent possible, Bank-supported projects use labor intensive design. The proposed SC i s designed to contribute to these objectives.

22. The suggested interventions are congruent with the Government’s 150 day action plan advocating critical infrastructure rehabilitation and j o b creation. The proposed SC i s also consistent with the Government’s draft interim Poverty Reduction Strategy Paper (iPRSP) which emphasizes the rapid restoration o f infrastructure and basic services as central to stability and essential to growth.

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V APPRAISAL OF SCALED UP PROJECT

Technical

A. Roads.

23, Sub-component A(a). Rural roads. The proposed intervention aims at repairingheshaping critical segments o f priority rural roads by focusing o n long-standing structures including temporary type bridges, culverts, and drainage. Major pothole filling and surface firming wil l also be carried out.

24. With the exception o f resurfacing (re-gravelling), much o f the works would be implemented through the extensive use o f skilled and unskilled labor employed f rom near-by communities along the roads. Roads have been prioritized by MPW, UNMIL, and the Bank o n the basis o f simple criteria involv ing accessibility, integrity and social services. I t i s estimated that under the above component about 3 10 km o f most affected roads would be repaired and 18 r iver crossingshridges installed. The works will be packaged into (i) UNMIL bidding lots; and (ii) smaller packages to enable the participation o f local contractors.

25. Sub-component A@). Urban roads/Streets. Urban roads in the CBD o f Monrovia are in a very poor state especially at the end o f the rainy season being additionally damaged by months o f heavy rain and flooding. Major arterial streets have deteriorated to such an extent that driving over them represents traffic hazard to public, extensive damage to traffic fleet and prolonged traffic jams and delays. These streets carry substantial Average Da i l y Traffic (ADT) in magnitude o f thousands o f vehicles. Proposed works under the SC will include pothole filling and drainage cleaning in the most busy downtown areas, as wel l as complete overlay o f selected sections, most damaged, with concrete asphalt. Works will be carried out through the contractors selected to carry out the major road contracts for Monrovia- Buchanan and Monrovia- Ganta roads rehabilitation works, through an anticipated Addenda to their contracts. These contracts are expected to commence in November 2006. Design and construction supervision for the works during the implementation will be carried out by the supervision consultants selected to supervise the mentioned major road contracts through appropriate Addenda.

B. Urban works.

26. Technical assessment, feasibility, and design studies o f Monrovia’s sewerage / sanitation and storm-water drainage infrastructure, and solid waste management services were undertaken under a separate study (TFLIB funded). The proposed interventions are based o n these assessments and are further detailed in Annex 3.

27. Sub-component B(a): Urban sanitation. The proposed emergency works wil l consist o f repair and cleaning o f clogged segments o f the existing network. W o r k wil l be carried out manually whenever possible. The use o f specialized equipment will be reduced to minimum -but nevertheless be required. In particular, works will include: (i) replacement o f missing manhole covers; (ii) cleaning o f accumulated materials in the system; and (iii) cleaning and repair o f a l l main and some o f the secondary gravity lines which do not end up at pumping stations which could cause flooding o f neighborhoods with r a w sewage.

28. Sub-component B(b): Rehabilitation or new construction of existing public toilets. These are a l l on identified existing sites and will therefore not require the acquisition o f new properties. The main issue here i s the operation and maintenance o f these facilities. It i s a prerequisite for this sub-component to proceed that operations and maintenance o f these facilities be bid out to private operators. Franchise agreements for the management o f these facilities will be prepared.

29. Sub-component B(c): Storm-water drainage. The proposed emergency works will consist of: (i) cleaning, repair and restructuring o f surface drains; (ii) cleaning o f manholes and inlets; (iii) furnishing o f

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inlet covers; and (iv) cleaning and repair o f drainage underground pipes. These works will be carried out by private contractors. Whi le heavy equipment i s not the intended primary mode o f delivery o f the works, some heavy equipment will be required by the contractors to undertake some o f the repairs andor replacement o f underground large diameter pipes.

30. Sub-component B(d): Solid waste. The proposed emergency works will include the removal o f these large accumulations o f solid waste in the city. Through community outreach programs, selected private operators/CBOs will recruit unskilled workers in the 16 ci ty zones to collect refuse f rom the communities and cart them to agreed upon collection points where they wil l be removed and sent to the disposal sites over a six month cleanup effort. A l imi ted number o f transfer trucks and appropriate equipment will be purchased under the project to help the M C C ensure the transfer o f solid waste f rom the collection points to the disposal site and to better manage the disposal site. Decentralized collection points will be constructed to ease pre-collection and collection o f solid waste in the districts by private solid waste operators. Private operators will be assigned the management o f solid waste services in the markets. Selection o f these operators will be conducted with the participation o f the market associations.

3 1. Whi le the cleanup campaign i s underway, the c i ty will be divided into S W M zones and contracts developed to al low for the regular (at least once a week) collection o f solid waste. Project funds will be used in the f irst place to finance the transition f rom n o service to a full b lown service, which will gradually reach cost recovery provided that households pay pre-collection and collection fees for transfer and disposal. A two year period will be used for entrenching these arrangements.

32. Sub-component B(e): Quick-impact, visible urban works. Proposed activities will include works identified and prioritized by the Government, such as repair o f market places, painting o f public buildings, etc. A l i s t o f pre-identified activities is presented in Annex 4.

Financial.

33. The nature o f works proposed, such as the rehabilitation o f bridges and culverts and firming up critical sections o f the roads i s l ikely to have financial and economic benefits for years to come. Whi le the construction o f improved and paved road network would be desirable, given the l o w amount o f population and current financing constraints, this i s not feasible at this stage. The ci ty roads and streets in Monrovia are in an extremely bad shape as wel l and the Operation & Maintenance costs o f vehicles are correspondingly high. Repair o f Monrovia’s roads i s expected to reduce these costs and associated travel time.

34. I t i s diff icult to quantify benefits deriving f rom the suggested interventions in urban c i v i l works. The type o f repair work envisaged in the project is unsophisticated for the most part: cleaning culverts, digging out clogged drainage ditches, and minor recharging o f road surfaces with stone and other material locally available, are al l jobs which can be done by unskilled labor. Some larger works such as the construction o f washed bridges, rehabilitation o f major sections o f the drainage network, and reinstating a solid waste collection system in Monrovia will also be financed. Given the current situation o f Monrovia’s solid waste, drainage, and sanitation systems the economic benefits o f the suggested operations should be high. The needs are enormous and are easily justifiable.

Social.

35. The success o f the interventions in the urban sector wil l ultimately depend o n the involvement and ownership o f Monrovia’s citizens. There i s a need to establish sustainable entities that could provide basic services o f waste collection, drainage maintenance, and management o f the sanitary facilities around the city. An analysis o f service providers’ capacity (MPW, MCC, and LWSC) describes existing weaknesses in their ability, quoting the lack o f equipment, and proper resources and poor management as main causes. The component’s interventions, with i t s relatively meager resources, could not address al l

10

these problems; however, it will put in place the in i t ia l foundations by providing assistance in the form o f capacity building and ‘on the j o b training’ accompanied by critical equipment purchase. Simultaneously, putting in place measurable performance indicators to ensure improved efficiency o f technical operations i s needed. Wherever user charges are involved proper financial and fiduciary controls need to be applied. Longer term aspects associated with proper and sufficient funding to providers and other necessary measures would need to be put in place at a later stage. For example, the studies suggest establishing MCC as a separate entity f rom the municipality with i t s own annual budget as per international best practices. Solid waste interventions will also involve the market association o f Monrovia in the formulation o f a sustainable collection scheme and introduce acceptable and enforceable user fees for the services provided (an informal system i s already in place).

36. Rural roads’ rehabilitation wil l be based o n the current on-going pilot scheme road that i s being implemented with UNDPLJNMIL, which involves the communities along the road, engineers o f MPW, and county and district officials ensuring that engaged labor i s uti l ized to the extent possible. In Monrovia, the works will involve and include MPW engineers as well. The Liberia Emergency Employment Program (LEEP) and the International Labor Organization (LO), which specialize in labor intensive methods o f road construction are collaborating partners and will provide technical advice and capacity building elements relevant to project implementation. K e y social issues relating to the program include: (i) the abil ity and willingness o f households to pay for the urban services; (ii) the need for adequate sensitization o f customers; and (iii) the need for behavior change with respect to sanitary and solid waste removal habits. The latter two issues are to be handled through a modest public outreach campaign that will include sensitization about the urban works interventions. The f i rst issue i s however beyond the scope o f the project alone, and will need to be addressed at the broader pol icy level.

Institutional.

37. The EIP uses Government execution for procuring al l works. I t has a Special Implementation Unit (SIU) at MPW and a Project Financial Management Unit (PFMU) at the MOF that are in charge o f a l l disbursements. The proposed additional financing through the SC will use a combination o f the Government execution method for the roads/city streets in Monrovia and one o f the rural roads, and third party execution method through Uni ted Nations Development Program (UNDP) for the urban works as we l l as the rural roads activities (See Annex 5: Implementation Chart). The reason for adding the third party execution method stems f rom the need to ensure that the UNMIL road contracts and the urban sector’s interventions, which consist o f small nature with high transaction costs does not delay the execution o f the EIP and LIRP. The Table 5 below presents the additional financing’s project execution and implementation arrangements:

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Type of works

Drainage cleaning

Drainage rehabilitation

Sewerage works

Solid waste cleanup Rural roads repairs

Monrovia streets and roads

38. I t i s envisaged that the local agencies listed above will assume responsibility for their respective sub-sectors. Project supervision will be assumed by twg international consulting f i r m s for the urban and transport components. For the urban component, the most practical and pragmatic approach to launching the investments rapidly, would be to recruit a wel l respected engineering firm which has experience in designing, supervising, and procuring the construction o f municipal works. The firm should have the capacity to supervise and provide technical support and training to the staff o f the providers (MPW, MCC, and LWSC). The firm would plan and coordinate the activities o f contractors (mostly locally and some international) who would carry out the works.

Bidding Executing Implementing Estimated documents Agency Agency Timeline to ready start works

Yes UNDP Local 06-Nov Contractor/NGO

MPWLocal Contractor/NGO

Contractor/MCC/ NGO/CBO

MCC/NGO/CBO

Yes UNDP Local Contractors 07-Jan

Yes UNDP Local 06-Dec

Yes UNDP Local Contractor / 06-Nov

N o UNDP and UNMILLoca l 07-Jan

Not MPW Contractors 06-Dec applicable already selected

MPW Contractor

39. For the urban component, i t i s most practical to ensure that the consultants who have designed the urban program continue i t s finalization and implementation through construction supervision. This i s due to the speed with which the Government and the Bank expect the component to be executed. Therefore, a single source selection o f consultants on an exceptional basis i s the most appropriate procurement method, the reason being the emergency nature o f the intervention and the importance o f continuity for upstream tasks already wel l carried out that would avoid disruption with a new consulting firm and delays.

40. The EIP Project Steering Committee will oversee the SC. The Committee, chaired by the Deputy Minister responsible for Technical Services at the MPW, and consisting o f a maximum o f seven members including, among others, representative o f the Infrastructure and Basic Services Pillar, MOF, Ministry o f Transport (MOT), Ministry o f Planning and Economic Affairs (MPEA), will be responsible for overall SC oversight and pol icy guidance.

Environmental.

41. The proposed component does not raise the environmental category o f the original project (category B), as most o f i t s impacts are expected to be positive. K e y activities to be financed under the additional grant, include installation o f improved drainage and sanitation facilities, collection o f solid waste, and the rehabilitation o f rural roads. These would bring about improvements, reduce environmental hazards, and contribute to an overall improvement in the quality o f l i fe for the average citizen.

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42. Sub-Component A: Roads. In view o f the fact that the transport activities are generally similar, to some o f the activities under the parent project, they will be implemented fol lowing the relevant recommendations o f the Environmental Mit igat ion Plan (EMP) to be developed within 6 months o f EIP effectiveness.

43. Sub-Component B: Urban Works. An EMP will be developed within 3 months o f project effectiveness. The Plan will include mitigation measures for the: (i) solid waste; and (ii) sanitation activities:

(i) Solid waste.

44. Collecting the waste and transferring it f rom il legal existing dumping sites and temporary intermediate collection sites to the existing Fiamah Landf i l l site, i s the only option to improve the public health situation in Monrovia at present. The Fiamah landf i l l i s currently being used as the only official dumping ground. I t i s a sub-optimal solution as surface water and leachate f low into and pollute the Metsurado River. In the absence o f a c i ty plan designating land areas for a new landf i l l site and large- scale financing, the SC proposes to continue using the existing landf i l l site after expanding it to include the unused area o f the adjacent non-operational WWTP. The extension would allow accumulation o f additional 270,000 m3 o f waste, which at an estimated rate o f 250 m3 accumulated per day, wil l a l low the site to stay in service for up to 3 years.

45. The usage o f the current landf i l l i s a stop-gap measure. A final solution i s only possible after a permanent landf i l l site for controlled refuse dumping has been identified, approved, and constructed and additional institutional capacity and equipment to operate the new site are provided. This solution cannot be achieved within the scope o f the SC, which merely provides a temporary solution. Mit igat ion measures will be proposed by the EMP and will include, among others, soil control barriers to minimize the amount o f leachate and improved daily control at the landfill. The EMP will also include basic operational principles and a simplified operational plan. M C C will continue operating the site. L imi ted capacity building at the MCC will be provided. In addition, the purchase o f some equipment under the SC financing for managing the landf i l l in a more professional manner will help mitigate the negative environmental impacts. Simple ways o f improving the drainage o f the site will be investigated and implemented in order to reduce the discharge o f leachate f rom the landf i l l before at least some minimal de tenti on times .

ii) Sanitation activities.

46. Cleaning o f the sanitation gravity lines without repairing the four pumping stations will cause the r a w sewage to f l ow into one o f the two rivers as these would be the natural "ends" for the lines. Whi le some negative environmental impacts f rom the f low o f raw sewerage to the rivers are inevitable, the proposed works under the SC provide a temporary measure to improve the urban environment. The rehabilitation o f the WWTP and four pumping stations can commence only after a larger project i s prepared or other funding sources identified. At that time, the mechanical trickling fi l ter plant would be converted to a stabilization ponds facility if the land i s available in that area or another potential site. The EMP would address the sequencing o f these larger investments.

47. priority items once Liberia has access to additional resources.

The above environmental issues that cannot be solved in this operation shall be considered

VI EXPECTED OUTCOMES

48. The component will enhance achievement o f outcomes o f the EIP. I t should be expected that additional rural roads will be rehabilitated and segments o f Monrovia c i ty roads, solid waste collection

13

system, drainage, and sanitary conditions wil l be improved. Additionally several high visibility activities wil l be undertaken.

49. better collection and removal o f solid waste; and (ii) provide temporary employment for people.

Specifically, the SC i s expected to (i) improve sanitary conditions through reduced flooding and

50. K e y performance indicators to be monitored include:

0

0

0

0

0

Number o f skilled and unskilled laborers employed (number o f man-months o f employment); Number o f bridges and culverts installed; Length o f Monrovia road network that has been resurfaced (km); Total volume o f solid waste removed f rom Monrovia (metric tons or m3); Number o f on-site sanitation facilities rehabilitated;

51. Because o f the emergency nature o f the operation and considering the post confl ict situation o f the country, baseline information was not available. Information o n the current situation will be gathered during the course o f the project. I t i s estimated that about 60% o f the Monrovia population will have increased access to better solid waste services; and (ii) 50% o f the Monrovia neighborhoods will be less affected by flooding.

VI1 BENEFITS AND R I S K S

52. The main quantifiable benefits resulting from the component include: (a) cleaner c i ty environment with lower health hazards; (b) improved rural road network and connection o f several districts to the rest o f the country; and (c) improved conditions o f roads in Monrovia. Risks faced by the project are presented in Table 6 below.

Table 6: Risks

Risk Rating Mitigating Measures Capacity o f local industry i s High l o w

Tight supervision measures to be put in place, identifying problems at an early stage.

S I U procurement and management slow and non- High functioning day to day operation

UNMIL capacity, equipment, Moderate to and staff are stretched among other tasks.

Moderate to If required engagement o f additional foreign specialists in contract management to enhance S I U

Upfront MOU with UNMIL outlining U N M I L ’ s inputs into the SC. Close supervision and coordination to ensure that indicative work plan can be expeditiously executed. Upon need to be complemented through private contractors.

Preliminary discussions with UNDP ensured the Bank that sufficient resources will be dedicated to the SC. Close Bank oversight will identify delays early o n and address them.

L o w

U N D P procurement takes longer L o w than anticipated

VI11 FINANCIAL TERMS AND CONDITIONS FOR THE ADDITIONAL FINANCING

53. US$ 16.5 mill ion.

The additional financing would be provided as an IDA grant. The program will cost a total o f

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I X CONDITIONS OF DISBURSEMENT

54. The SC has the fol lowing condition o f disbursement for Sub-Component A (a) - Rural Roads (Roads#l, 3, 4, and 5; Works and Goods expenditure categories): Signed Joint Project Implementation Document between UNDP and UNMIL outlining implementation arrangements, U N M I L ’ s inputs and expected outputs; and for Sub-Component A (a) - Rural Road#2 and Sub-Component A (b) - Monrovia City Streets (Works and Goods expenditure categories): Road EMP and a Road RAP, as the case may be, that i s satisfactory to the Association and disclosed the said document in such manner as may be required by the Association.

55. Other Conditions include:

EMP will be disclosed as part o f the EIP. (i) EMP o n Sub-Component A: Transport, t o be developed within 6 months o f effectiveness. The

(ii) E M P o n Sub-Component B: Urban, to be developed within 3 months o f effectiveness.

(iii) UNDP’s annual work plan and budget for the SC prepared and approved by the Bank within 3 months f rom effectiveness for year 1, and there after by no later than Dec 15 each subsequent year.

15

TABLES Table 7: Project Activity and Cost.

I 1

Sub-Component A (a) Rural Transport

16

Table 8: Summary of Procurement Arrangements.

I I I I I I I I

Basic rehabilitation of bridges and culverls along road, and limited rehabilitation of road surface. Implemented

Basic rehabilitation of bridges and culwrts along road, and limited rehabilitation of road surface. Implemented by Local Contractors (4 contracts).

Basic rehabilitation of bridges and culverts along road, and limited rehabilitation of road surface. Implemented by UNMIL (Sectorl: Chinese Contingent).

Basic rehabilitation of bridges and culverts along road, and limited rehabilitation of road surface. Implemented by UNMlL (Sector 3: Bangladeshi Contingent).

1 Voijama.Foya by UNMlL (Sector 2: Pakistani Contingent)

2. Pleebo- Barclayviile

Sub-Component A (a): Rural Transport 3. Zwedru - Fishtown

4. Ghanta - Saclepea

Basic rehabilitation of bridges and culverts along road, and limited rehabilitation of road surface. Implemented

5 Saclepea -Tappita Iby UNMlL (Sector3 Bangladeshi Contingent)

Resurfacing of the road pavement along the selected streets, fixing potholes and cleaning and unblocking of affected road drainage Implemented by International

Sub.Total for'Sub-Component A (a) . I 37

Sub-Component A (b) Urban Transporl

1 0.40

1.90 2 5 4 1.54

5.95 1650

17

Table 9: Detailed Disbursement Arrangements.

llmplemented by MPWthrough a Contractor [firm) I

I I I I I I I I I

I 0.301 030

Sub-Component A (b) Urban Transpod

Supervision of Sub- Component A (a), Road#2

Supenision of Sub- Periodic technical audits of construction works t o Component A (a), Roads# rehabilitate critical rural road sections across the i ,3,4, and 5. country under implementation by UNDP/UNMIL.

Technical and financial supenision of construction works to rehabilitate critical rural road sections across

Sub-Component C: Construction

Supervision and Project Management

the country under implementation by MPW. Implemented by MPW through a Contractor (firm) Technical and financial supenision of construction works on selected city slreets t o be carried out through MPW. Implemented by MPW through a Contractor

0 15 0 15 Supenision of Sub- Component A (b) Monrovia Streets.

Detailed design and suuervision of Sub-

Urban works detailed design and supervision (to be financed bv TFLlBi lmulemented bv WB throuoh a

Co'mponent B UNDP administrative fee Other (Safeguards

18

. . Contractor. 1 .M 1 .M

Consultants to develop EMP and resettlement plans (f Management and administrative fee 0.90 0.90

Total Ertimted Cast for SubConiporient C: Sub-Total

Physical Contingencies Total Ea lma te i l Project Con

1.64 . 0.90 p 547 1.54 8.29 5.73 1.61 0.09 0.90 15.65 0 4 6 0 3 1 003 000 005 0 8 6 8.75 6.04 1.67 0.09 0.95 16.50

ANNEXES

Annex 1: Selection of Works Under Sub-Component A: Transport.

1. The overall rational for the selection o f rural roads under Sub-Component A has been explained in the main text. Whi le the main Emergency Infrastructure Project (EIP) focused o n two main corridors leading to the capital, Monrovia- Buchanan and Monrovia- Ghanta, the rest o f the country remains partially (and in certain areas completely) un-passable during the rainy season. There are 16 major routes in the country in need o f urgent treatment in order to remain open for al l kinds o f traffic during the rainy season. These links serve as basic corridors for movement o f people and goods and have total length o f about 1300 km.

2. The major aspects o f the required emergency works along these routes involve bush clearing, road prism shaping, basic drainage with major culverts reinstatement, and erectinghepairs o f selected bridges. Each o f the 16 major road corridors running north-south and east west has been examined and the needed emergency works have been pre-identified and costed. The basic costing was prepared by regional and resident engineers at the Ministry o f Public Works (MPW).

3, Sub-Component A proposes to finance rehabilitation o f critical sections o f up to 5 o f the 16 major roads. The criteria used to prioritize the 5 roads were based on several prevailing aspects related to the importance o f a route, potential traffic (presently suppressed), connectivity with other regions o f the country, abil ity to implement the needed works (either through small local contractors or by UNMIL force and equipment), number o f beneficiaries (communities situated along the road and in the districts that road i s passing through), and availability o f the l imi ted funding. In addition, the roads selected for rehabilitation include the most urgent and necessary links representing a "back bone" for the roads network integrity. Finally, the entire rural roads network was examined vis-a-vis the above multidimensional criteria and links that provide most necessary connection between completely cut-off areas, such as Pleebo- Barclayville (69 km), were also selected.

4. The presence o f UNMIL forces in the country, and in particular the location o f their mi l i tary contingents, the availability o f road construction equipment and engineering capacity, and the availability of local contractors (with very l imi ted capacity), were another set o f important factors in choosing the selected links. The final selection was made by a jo in t committee composed o f MPW, UNMIL and WB representatives. The selected links, their length with estimated cost and method o f implementation and management have been indicated in the main text. Detailed scope o f activities for each road i s currently being prepared and wil l be finalized upon the end o f the rainy season. Other road links presently not included in the SC will be treated as soon as additional funding becomes available.

5. The Rural Roads Sub-component o f the SC focuses mainly o n opening the links for motorized traffic and involves some basic main capital works (road culverts and temporary bridges). The MPW will need to keep maintaining these roads during rainy season in order to keep them open. Implementation i s structured in a way to maximize the use o f local manpower, creating j o b opportunities for communities situated along the roads and basic on-the-job training, considered to enable local communities to provide continuous basic maintenance, such as side brushing.

6. Each road link i s currently being visited by a jo in t mission composed o f UNMIL and M P W engineers, expected to finalize the scope o f works and develop detailed technical specifications. Rehabilitation works undertaken by UNMIL will be assisted by Resident and Regional Engineers o f MPW, while overall consistency o f works, cost control and quality o f works will be overseen by an independent entity providing technical audits based on periodic visi ts to the sites. The technical audit will also include review o f the performance o f a l l parties, including UNDPLJNMIL and MPW. Rehabilitation works implemented by local contractors will be supervised by a qualified construction supervisor.

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Annex 2: Prioritized Roads in the Monrovia Central Business District (CBD) and Suggested Rehabilitation Works.

1 Ashmun Street 2 Front Street 3 Halie Selassie Ave 4 Broad street 5 Carey Street 6 Benson Street 7 UN Drive 8 Camp Johnson Road 9 Nelson Street

10 Robert Street 11 Johnson Street (Broad St. Intersect) 12 Lynch Street 13 Warren Street 14 McDonald Street 15 Clay Street

1 .oo 0.80 1.80 1.40 1.10 1.90 3.20 1.10 0.30 0.20 1.40 1.10 0.25 0.40 0.65

1 2 3 4 5 6 7 8 9

10 11

Tubman Blvd ( By-pass - 11 St.) Center Street Randall Street Sekou Toure Ave Newporl Street Russel Ave Cheeseman Ave 15th Street 16th Street 17th Street 18th Street

16IPerry Street I

Patching cost is per krn US $27,146 * Overlay cost per krn US $105,500

.ENGTH (km)

4.0C 0.9c 1.3c 0.8C 0.8C 3.7c 2.2c 0.1c 0.2c 0.2c 0.1c

14.30 1,508,650

,sphalt works have been prioritized to optimize the use US2million based on the following criteria: 1, Selection of most critical areas of repairs with respect to maxamizing resources 2. Minimizing operational cost of vehicles 3. Increase in the level of road safety

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Annex 3: Monrovia Urban Infrastructure and Services Sub-component

Introduction

7. The rationale for the urgent rehabilitation o f critical infrastructure throughout Liberia and the restoration o f services has been wel l established in the main text o f this Project Paper. In the more densely populated areas such as Monrovia (estimated population o f approximately 850,000) these services are even more critical in order to protect the public health o f the urban population.

8. Under this subcomponent o f the Supplemental Component (SC) o f the Emergency Infrastructure Project (EIP) investments will be made to restore and rehabilitate infrastructure and services for: (i) the drainage network, (ii) the sewerage system, (iii) public on-site sanitation facilities, (iv) solid waste management, and (v) other priorities to be specifically identified ranging f rom market areas rehabilitation to the repair and renovation o f public buildings.

9. Trust funds were utilized in 2005 and 2006 to commission an extensive study o f the urban water supply, sanitation, storm-water drainage, and solid waste management needs o f Monrovia and six other urban centers. These reports have been submitted to the Client. For Monrovia the total cost estimate for the Emergency Rehabilitation Program comes to $ 8.965 mill ion. Designs, specifications, and bills o f quantity (BOQ) have been prepared for this proposed investment amount.

The Monrovia Urgent U r b a n Needs

10. The GKW Emergency Rehabilitation Program Report issued in M a y 2006 details the urgent works and goods requirements for Monrovia and the six other major towns. Separate studies were undertaken for water supply (EC funded), while the ERP Report focuses on sewerage, public toilets, drainage, and solid waste management infrastructure and services. T h i s annex details the recommended packaging o f contracts that would need to be tendered for the proposed U S D 7.02 mi l l ion investment program under the urban infrastructure and services component o f the SC o f the EIP.

Sewerage Reticulation Rehabilitation fvS$ 0.53 million)

1 1. roughly 20 km o f the network i s in service. There are an estimated 2,900 household connections o f which only 800 are active and billed. The entire sewerage network covers only 14.4 km2, mainly running in a north-south axis parallel to the Atlantic Ocean shoreline.

The ERP report indicates that there i s approximately 70 km o f sewers la id in Monrovia o f which

12. In the ERP report the sewerage and public toilets investments are aggregated together under one investment sub-component. Under the SC resources are allocated to the sewerage reticulation rehabilitation activities to clean structurally sound pipes, replace damaged and collapsed pipes, and for operational costs. The report estimated that U S D 770,000 would clear and replace roughly 40 km o f sewer pipe. Therefore, for the U S D 540,000 available under the SC financing for this purpose, approximately 15 km o f sewers should be cleaned and/or replaced and manholes replaced. The existing L W S C customers connected to the sewerage network are continuing to use the sewers. Given the extensive blockages this usage i s causing a public health problem as the sewers are surcharging in relatively congested areas o f Monrovia.

13. Six c i v i l works contracts o n a National Comuetitive Bidding (NCB) basis would be tendered locally to achieve these results with respect to revitalizing a larger percentage o f the sewerage network. One contract will be tendered for goods on a NCB basis to provide required specialized sewer cleaning equipment. The Liberian Water and Sewerage Company (LWSC) has the lead responsibility for this component. They will, together with U N D P and the construction supervision engineers, procure the contractors and oversee a l l the work called for in each o f the contracts.

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14. Some technical details that must be noted here are: (i) the ERP report indicates that there are four pumping stations within the sewerage collection network, and (ii) the wastewater treatment plant at Fiamah (trickling filter) i s totally out o f service. Presumably the cleaning o f the sewer lines, in the absence o f the rehabilitation o f the pumping stations, will deliver the sewage to the inoperable pumping stations along the St. Paul and Mesurado Rivers which will then overflow into these rivers. This situation will improve the urban (brown) environment but have a negative impact o n the rivers quality. This i s a temporary solution to the overall sewerage infrastructure problems, when additional financing i s made available, the pumping stations and wastewater treatment plant will be rehabilitated and the wastewater then properly delivered there for treatment and disposal. No funds are available under the RRC to address the deficiencies in the pumping stations or the wastewater treatment plant.

Indicators

Total urban area o f Monrovia

Urban area covered by on-site sanitation

Urban area covered by sewer network

Population served by pit latrines

Public Toilets Rehabilitation (US$ 0.33 million)

Unit Value

km2 42.0

km2 27.6

km2 14.4

% 20

15. The ERP report l is ts 19 public toilets slated for rehabilitation. Given the lack o f sewerage coverage in the city, this small investment in rehabilitating the public toilets i s deemed reasonable. Enough funds have been allocated to this exercise to allow for a thorough rehabilitation and, in some cases, complete reconstruction. The fol lowing table presents some o f the data related to sewerage and sanitation infrastructure and services.

Population served by septic tanks

Population without sanitation services

16. As with the sewerage rehabilitation sub-component, the public toilets rehabilitation activity will be under the direction o f the L W S C and i t s construction supervision consultants. The estimated cost o f the c iv i l works i s USD 340,000 and this amount will be contracted out in four c i v i l works contracts o n a N C B basis

% 29

% 49

Population served by public toilets I % I 2 I

Drainage Rehabilitation fUS$1.90 million)

18. All stormwater drainage facilities in Monrovia are under the responsibility o f the Ministry o f Public Works (MPW). Mos t o f the drainage network for Monrovia i s comprised o f drainage pipes as per the following table o f estimated lengths. The dimensions o f the pipes generally vary between 36” to 42” in diameter. Under the SC financing the drainage rehabilitation i s the second largest investment category.

22

The pipes and concrete channels listed below are mainly in zones 1 - 9 covering approximately 43 km2, whi le the earth channels serve the remaining zones 10 - 16.

Pipes (meters)

26,960

Concrete channels

Earth channels

2,120

21,830

TOTAL

19. There will be nine c iv i l works contracts tendered for the cleaning and repair o f the drainage network. These will a l l be tendered o n an NCB basis at a total cost o f USD 1.9 mi l l ion for the c iv i l works. Please refer to Attachment I for more details o f the contracts and costs for the drainage investments. Given that most o f the cleaning o f the drainage network wil l be the cleaning o f pipes, some equipment will need to be procured by the MPW in order to assist local contractors. Some funds are allocated in the R R C for such equipment. Where pipes need to be replaced, these replacements will be embedded in the c i v i l works contracts. At issue here will be the type o f material o f the pipes to be replaced. I t i s possible that the replacements would be concrete cast pipes, done locally, which would provide for a higher labor input.

50,910

20. All drainage network rehabilitation contracts will be under the responsibility o f the MPW and the construction supervision consultants. All contracts will be issued with the haulage o f the excavated spoils explicit ly included in the bids. The authorized spoils dumping sites will be clearly spelled out in the bids. When cleaning drainage networks, if the spoils are not removed immediately, the impact o f the investment i s greatly marginalized when the next rainy season begins. Local ways o f manufacturing manhole covers may also have to be devised, maybe using pre-cast concrete designs. So while local contractors will be engaged to undertake this work and it will be labor intensive, the contractors will have to have a certain minimum level o f experience and equipment in order to provide for the haulage o f the spoils and the lifting out and replacement with heavy concrete drainage pipes.

Solid Waste Management Facilities Rehabilitation and Sewice Provision (US$3.35 million)

21. Solid waste management improvements are the highest priority investments under the SC financing arrangements. There will be three major groups o f contracts leading to the improvement o f the cleanliness o f Monrovia over the period o f the SC implementation. The first priority will be to provide for a general clean-up o f the accumulated wastes in the city, this wil l require somewhere in the order o f 4- 6 months to complete with three contractors engaged. A great deal o f manual labor employment wil l be generated through this effort. The second contract grouping would be a single c iv i l works contract tendered to rationalize the existing Fiamah landf i l l site. And finally, contracts will be tendered (as a goods contract - delivery o f a service) to provide for S W M weekly services throughout most o f the c i ty (zones 1-9 at least) for a period o f 18 months.

22. All responsibilities for S W M services rest with the Monrovia Ci ty Corporation (MCC). Field investigations reveal that there are some 20 large piles o f solid waste throughout the Monrovia metropolitan area which need to be cleared away. It i s estimated that the Monrovia urban area generates somewhere o n the order o f 200 tons o f solid waste per day or 250 m 3 per day. The accumulated piles o f solid waste are estimated to contain upwards to 60,000 m3 o f waste materials which will be hauled out o f the communities during this first phase o f S W M investment. USD 300,000 i s allocated to this effort. The

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bidding documents for the three civil works contracts will be tendered on an N C B basis to haul away as much o f the 60,000 m3as this budget will allow.

23. Secondly, a sinale civi l works contract will be tendered on an N C B basis for USD 100,000 for a contractor to improve the functioning o f the Fiamah landfill by: (i) covering the existing piles o f solid waste with soil, (ii) creating some new landfill cells at this site for the future dumping o f solid waste, (iii) improving the road access leading to the site, and (iv) through soil control barriers, attempt to minimize the amount o f leachate that finds i t s way into adjacent watercourses.

24. The final sets o f contracts are those for the contracting out o f S W M services following the clean- up effort in the most congested parts o f Monrovia. These services will entail the tendering o f 12 aoods contracts (service delivery) to provide for the collection o f solid wastes in zones 1 through 9 o f Monrovia. Twelve local contracts will be tendered on a goods N C B basis. These contractors will be responsible for (i) getting the wastes from within the communities to the 20 collection points throughout town (those very collection points where the existing accumulations are now), (ii) placing all the wastes in the two 6 m3 skips provided for by the M C C at each site, and (iii) hauling these skips at least once a week to the Fiama landfil l site. An amount o f USD 2.4 has been allocated for these service delivery contracts.

25. I t should be noted that such services as solid waste collection can be categorized as a “goods” in relation to the World Bank procurement definitions and guidelines. Contracts whereby an easily measurable output can be gauged, i.e. the routine collection o f solid wastes, are generally procured on a goods contracts basis as standard practice.

26. The M C C will initially procure 40 skips, 3 skip trucks, and a bulldozer, dump truck, and front end loader (for the landfill operations) to support the local contractors who will most probably not be able to raise the funds to invest in such equipment. These will be procured through an ICB contract. All o f the contracts for S W M will fall under the direct responsibility o f the Monrovia City Corporation with strong support from the supervision engineers.

Other High Prior@ Works and Goods Provision 1US$0.83 million)

27. The GKW ERP report did not include other investment types that have since been raised as possible options for improving the city infrastructure and services. A priority l i s t with specifications and BOQs i s being prepared and wil l be further drawn up, and developed into bidding documents by the supervision engineers. The types o f investments identified thus far are: (i) minor repairs and painting o f public buildings, (ii) markets improvements, and (iii) supplementary water supply boreholes and elevated storage tanks. An amount o f USD 0.81 mil l ion has been allocated for such activities yet to be fully identified goods and works. All goods and works contracts would be conducted on a N C B or local shopping basis.

Public Awareness and Traininn Carnuaim KJS $09 million)

28. Public awareness and training i s being incorporated into each o f the above activities. This includes the cost o f delivery and maintenance for urban works as well as the cost o f the public outreach campaign.

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Attachment 1 Details of Costs by Sub-Component

SJb-Component B Jrban Words

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Annex 4: Pre-Identified quick-impact, visible urban works in the Monrovia.

28. public signs, such as bus stops; demarcation o f public areas, such as playgrounds; improvements o f market stalls; public awareness campaign.

Urban works will include painting o f public buildings and monuments; restoration o f

29. Pre-selected areas for rehabilitation include:

1. Market Sites:

i) Waterside General Market; ii) Rally T ime General Market; iii) Nancy Doe Jorkpen T o w n Market; iv) Providence Island Structures.

2. Public Areas:

i) Monrovia bus stops; ii) Central Business District (CBD) sidewalks; iii) Central Business District (CBD) cross walks; iv) Public monuments; v) Street Center Lines; vi) National museum; vii) Public beaches.

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I I I I I I I I I I I I I I t

I

I

30. The proposed additional financing through the Emergency Infrastructure Project Supplemental Component (SC) will use a combination o f the Government execution method for the roadshity streets in Monrovia and one o f the rural roads, and third party execution method through United Nations Development Program (UNDP) for the urban works as wel l as the rural roads activities. The third party execution method will ensure that the UNMIL road contracts and the urban sector’s interventions, which consist o f multiple small contracts with high transaction costs, do not delay the execution o f the Emergency Infrastructure Project (EIP) and the Liberia Infrastructure Rehabilitation Project (LIRP) by the Governmen t .

3 1. Activities under Government execution. N o changes in general disbursement procedures f rom the original agreement under EIP are foreseen when Government execution i s utilized. The Special Implementation Unit (SIU) set up at the Ministry o f Public Works (MPW) to execute the EIP and LIRP, will also be responsible for EISC activities. As in the case o f EIP and LIRP, al l financial management tasks including disbursement will be handled by the Project Financial Management Unit (PFMU) at the Ministry o f Finance (MOF). The EISC will use the EIP’s Designated Account opened in a commercial bank. A financial management manual currently under preparation will detail arrangements on internal controls, accounting, and disbursement. SC activities executed by the MPW will be audited together with and as per audit arrangements o f the EIP Road components.

32. Activities under UNDP execution. On request o f the Government the Bank will be disbursing funds directly to UNDP. UNDP will be responsible for the financial management, recruitment and procurement o f good and services for SC under this third-party executed activities. UNDP will be responsible for progress reporting to the Bank as described below. The financial envelope for the activities i s U S 1 2 . 3 3 mill ion, o f which UNDP’s management fee amounts to US$O.90 mi l l ion.

33. Bank and UNDP o n financial management in grant agreements (See Annex 6).

Auditing Arrangements. Auditing arrangements will be governed by the MOU between the

34. Budget arrangements. U N D P will prepare annual work plans and budget for the SC and will be sent for review f rom the W o r l d Bank within three months f rom effectiveness and there after by n o later than Dec 15 each subsequent year. The budgets will be revised as necessary based on comments received.

35. Reporting and Monitoring. UNDP Liberia will prepare and generate interim un-audited Financial Reports (IFR) and submit them to the Wor ld Bank as part o f the project progress report and for disbursement purposes. These reports will consist of:

a. Financial Reports: to include sources and uses o f funds and expenditures by project components and activities.

b. Physical Proscress Reports: to include narrative information and output indicators linking financial information with physical progress for the major activities under each o f the SC sub- components.

c. Procurement Reports: providing information on the procurement o f goods, works, services, showing procurement performance against plan, including information o n al l authorized contract variations.

d. SC Account Act iv i ty Statement (from U N D P books)

e. SC Cash Reauirement Report

f. Summary Statements o f SC Account Expenditures for contracts subiect to pr ior review (if any), and

g. Summary Statements o f SC Account Expenditures for contracts not subiect to pr ior review. 28

36. These reports will be submitted to the Bank within 30 days f rom the end o f each quarter.

37. Disbursement Arrangements. The SC will use UNDP’s one universal U S $ Bank Account to receive the funds but shall maintain a Separate Account in UNDP’s Books for the purposes of the SC. The SC will use the report-based method as basis for i t s disbursements.

38. The in i t ia l advance will be paid into the UNDP’s universal account. Subsequent disbursements will be based o n the IFR including subsequent six months cash f l ow statements (and related procurement plan) reconciled to the funds available in the account.

39. Supervision plan. During the f irst year o f the project implementation, intensive Wor ld Bank supervision will be required in order to ensure that the project financial management arrangements are in place and functioning. The f i rst FM supervision mission after effectiveness will include a review o f the flow o f funds arrangements for the transfer o f funds for sub-project activities and make any modifications that may be required for effective implementation. There will be two supervision missions per year.

40. categories i s presented in Table 9 o f the Project Paper. The Bank will be financing 100% o f a l l eligible expenditure in l ine with the country’s Financial Parameters.

Allocation of Grant Proceeds. Detailed category schedule o f activities and disbursement

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Annex 6: Memorandum of Understanding between the World Bank and UNDP Financial Management Requirements in Grant Agreements for Which the UNDP i s the Grant Recipient.

[Annex 6 is provided in a separateJile in Acrobat Reader formatl

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Annex 6: Memorandum of Understanding between the World Bank and UNDP Financial Management Requirements in Grant Agreements for Which the UNDP i s the Grant Recipient.

WOaD BANK AND UNITED NATIONS DEVELOPMENT PROGRAMME MEMORANDUM OF UNDERSTANDING

ON

FINANCIAL MANAGEMENT REQUIREMENTS IN GRANT AGREEMENTS FOR WHICH THE UNITED NATIONS DEVELOPMENT PROGRAMME I S

THE GRANT RECIPIENT

This Memorandum o f Understanding i s between the Wor ld Bank', both in i t s own capacity and as administrator o f certain trust fimds set up with contributions from various donors, and the United Nations Development Programme, (UNDP).

1. In order to facilitate implementation o f certain priority activities in countries with low capacity, the World Bank from time to time makes grants directly to the UNDP for the benefit o f the developing countries in question. In such circumstances, a grant agreement i s concluded between the UNDP, as a grant recipient, and the World Bank. These grant agreements address, inter alia, World Bank financial management, reporting and auditing requirements.

2. In the past, these requirements have been subject to debate and case-by-case negotiations between the World Bank and the UNDP at considerable cost to both parties while also at times resulting in the delay o f aid delivery to recipient countries. As a result o f recent po l icy changes, the W o r l d Bank i s n o w in a posi t ion to agree to revised arrangements, which rely on the normal financial management framework o f the UNDP, to ensure that grant funds are used for the purposes specified in the individual grant agreements. In particular, the World Bank's mandatory requirement for annually audited project f inancial statements i s waived. This requirement i s replaced by an option, exercisable by the World Bank, to request an audit if circumstances so necessitate. This Memorandum o f Understanding therefore confirms agreements reached between the W o r l d Bank and the U N D P o n the standard f inancial management and report ing requirements arrangements that are to apply to all grant agreements signed between the World Bank and the UNDP, when the latter i s the direct grant recipient.

Standard covenant on financial management, reporting and auditing

3. A l l grant agreements between the W o r l d Bank and the UNDP, as a grant recipient, concluded after the date o f this Memorandum o f Understanding, wil l include a standard covenant on financial management, reporting and auditing as follows:

"(a) system, including records and accounts, and prepare financial statements in accordance

The Recipient shall maintain or cause to be maintained a financial management

The Wor ld Bank refers to the International Bank for Reconstruction and Development and the International Development Asso.ciation.

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with consistently applied accounting standards acceptable to the Bank, adequate to reflect the operations, resources and expenditures related to the Activities.

(b) Upon the Bank’s request, the Recipient shall: (i) have the financial statements referred to in subparagraph (a) above audited for the period indicated in the Bank‘s request, in accordance with auditing standards, acceptable to the Bank, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the date o f the Bank’s request for such audit, (A) certified copies o f the financial statements referred to in subparagraph (a) above for such period, as so audited, and (B) an opinion on such statements b y said auditors, in scope and detail satisfactory to the Bank; and (iii) furnish to the Bank such other information concerning such records and accounts and the audit o f such financial statements, and concerning said auditors, as the Bank shall have reasonably requested.

(c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis o f report based disbursements, the Recipient shall: (i) retain, until at least one year after the end o f the fiscal year in which the last withdrawal f iom the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (ii) furnish to the Bank other relevant information concerning such records as the Bank shall have requested; and (iii) ensure that such reports are included in any audit that the Bank may have requested pursuant to subparagraph (b) above.”

Application of the standard requirements

4. For the specific purposes o f this Memorandum o f Understanding, the Wor ld Bank confirms that the UNDP shall be deemed to meet the requirements o f the above standard covenants (a) and (b) by safeguarding and auditing h n d s withdrawn under a given Wor ld Bank grant in accordance with the provisions o f the UNDP Financial Regulations and Rules, and by otherwise exercising the same care and diligence in handling o f such grant f i n d s as i t uses in handling o f i ts own funds.

5. Throughout the period covered by this Memorandum o f Understanding, and commencing o n January 1, 2004, the UNDP agrees to provide to the World Bank copies o f its b iennium financial statements, as audited by its independent auditors, the United Nations Board o f Auditors.

6. audit, the UNDP agrees to be responsible for:

Where under clause (b) o f the standard covenant the Wor ld Bank has requested an

0

0

Securing the appointment o f a mutually agreed independent auditor; and Preparing mutually agreed audit Terms o f Reference which reflect, as necessary, circumstances giving rise to the W o r l d Bank’s request for said audit.

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Duration

This Memorandum o f Understanding wil l be reviewed by the Wor.l Bank and the UNDP no later than December 31, 2007, following which the parties wil l decide whether this Memorandum of Understanding should be renewed, modified or terminated.

SIGNED:

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION

By: + Jame W. Adams

L-1 Vice President, Operations Policy & Country Services

SIGNED:

PROGRAMME b

strator and Director, Bureau for Resources and Strategic Partnerships

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