ICRR 10014
                                                                                              Report Number : ICRR10014
                    ICR Review
                    Operations Evaluation Department




1. Project Data :
             OEDID :
             OEDID:     C1884
         Project ID :   P002341
      Project Name :    Municipal and Housing Development Project
            Country :   Senegal
             Sector :   Urban Management
       L/C Number :     Cr. 1884-SE
  Partners involved :   CIDA
       Prepared by :    Kyu Sik Lee, OEDST
      Reviewed by : Yves J. Albouy
    Group Manager : Roger H. Slade
       Date Posted : 03/12/1998

2. Project Objectives, Financing, Costs and Components :
Objectives were to: (i) strengthen local government capacity for policy making, infrastructure investment,
service delivery, and resource mobilization in the Greater Dakar area; and (ii) increase the efficiency of
the housing sector by removing institutional and financial constraints to the Housing Bank of Senegal
(BHS), and improving the operation of the land market . Components were: (a) establishing a Municipal
Credit Fund (MCF) in BHS to finance municipal income generating sub -projects; (b) technical assistance
to the Greater Dakar Intermunicipal Organization (CUD) including civil works equipment, training, and
public facilities (schools and administrative centers ); (c) public transport improvement through technical
assistance to the Traffic Bureau and rehabilitation of the road network; (d) implementation of fiscal
cadastre to increase tax revenues; (e) establishing a Land Development Corporation (SCAT-URBAM) to
supply serviced plots for housing; and (f) financing a government loan to BHS for providing housing
sub-loans to low income areas. The loan amount was US$ 46 million. A balance of US$ 2.8 million was
canceled. Total project cost was $US 75.9 million (at 1997 exchange rate).

3. Achievement of Relevant Objectives :
The project achieved the main relevant goals of strengthening local government capacity and increasing the
efficiency of the housing sector .

4. Significant Achievements :
The objective of financing sub -loans for low income housing was substantially achieved . The BHS granted
up to 1,402 sub-loans per year compared to the appraisal target of 1,500. The technical assistance to
strengthen local government capacity was successfully implemented owing partly to the support of the
Canadian grant and AGETIP. The project provided technical and managerial expertise to carry out civil
works with necessary equipment . It financed rehabilitation of large number of public facilities including
schools, pit-latrines, and administrative and training centers . The institutional strengthening with the
creation of a transportation and traffic division in CUD substantially improved the public transport system .

5. Significant Shortcomings :
The performance of SCAT-URBAM for residential land development was less satisfactory because of its
poor financial position. MCF was not successful because its sub -loans with an interest rate of 6 percent
could not compete with the AGETIP projects funded by grants, which was a flaw in project design . Local
resource mobilization was not realized because the tax collection rate remained close to or under 50% of
the billings even though the fiscal cadastre was improved .


6. Ratings :             ICR                       OED Review                Reason for Disagreement /Comments
               Outcome : Satisfactory              Marginally Satisfactory   Two of six components were not
                                                                             achieved; one was partially achieved .
     Institutional Dev .: Partial                  Modest                    Partial achievement is classified as
                                                                            modest impact.
        Sustainability : Likely                   Uncertain                 The sustainability of most achievements
                                                                            will depend on improvement in the CUD's
                                                                            tax collection.
   Bank Performance : Satisfactory                Satisfactory
      Borrower Perf .: Satisfactory               Satisfactory
       Quality of ICR :                           Satisfactory


7. Lessons of Broad Applicability :
This project was too complex and difficult to implement and supervise covering multi -sectors (transport,
municipal finance, and housing and land ). For a project to be manageable, it is crucial to keep it as simple
as possible.

8. Audit Recommended?         Yes     No

9. Comments on Quality of ICR :
A summary of the Borrower report should have been included in the ICR .