1/ioI THE WORLD BANK SECTOR AND OPERATIONS POLICY Infrastructure and Urban Development Department INU-OR1O FY91 SECTOR REVIEW URBAN DEVELOPMENT by Lawrence M. Hannah Urban Development Division Infrastruchtre and Urban Development Division December, 1991 General Operational Review This is a document published informally by The World Bank. The views and interpretation herein are those of the authors and should not be attributed to the World Bank, to its liliated organizations, or to any individual acting on their be Alf. EXECUVE SUMMARY The Urban Policy Paper (UPP), Urban Polwy and Economic Developnent: An Agenda for the 1990s, proposes a policy framework and stategy to link the World Bank's assistance in the urban sector to the broader objectives of economic development. This new framework was proposed following an assessment of World Bank experience with governments and donors in the urban sector. The assessment showed that insufficient attention has been devoted to the policy and istitutional development required to manage urban growth. Deterioring inftucture, weak muncipal institutions, and over-regulated urban markets have constrained the productivity of the urban economy and its ability to generate increasing incomes, employment, and services for a growing number of the urban poor. Population pressures and inappropriat urban polices have in turn exacerbated a deteratng urban environment. The consequences of weak policies and institutions are evident in most countries, and they have direct impacts on macroeconomic performance. The UPP framework provides a new benchmark for assessing the performance of the Bank's urban sector lending. With this new strategic direction in mind, this report first provides a summary of the Bank's FY91 activities in the urban sector. It then presents a framework which may be used in assessing the Bank's response to the issues outlined in the UPP. Current and projected activities are examined in light of this framework and strengths and deficiencies are noted. Throughout, the goal is to try to understand what is being done well, what needs to change, and to figure how these changes can be accomplished. Ultimately, the story this report tells is a mixed one. There is some clear evidence that the need for policy and institutional development has been recognized and is having an ^ffect on the way the Bank goes about its business. However, the analysis undertaken here also suggests that more must be done befnre the ideas contined in the UPP are fully institutionalized within the Bank. The basic mnssage of this report is that there is a need for enhanced internal cooperation and communication; work grounded in research and expenence, designed to facilitate learning across sectors and countries; carefl attention to the impact of specil.- government interventions on overall development goals and objectives; and, analysis of the Lstitutional capacity of cient governments. Perhaps the most impartant underlying assumption of this report is that the Bank will not be successful unless it "speaks with one voice' and that voice is saying to countries: 'Improving urban conditions demands well-conceived policies, competent institutions and managers, special attention to the poor and to preseving the envionment, and a comprehensive strategy for change; evything you do should fit within this framework.' Lending Operations. A review of lending opeaons in FY91 found that the Bank bad made sixteen urban loans for a total of US$1,255.4 million. The volume of urban lending has been cyclical over the past ten years from a peak of 9 percent of total Bank lending in 1988 to a low of 4.8 percent in FY90. FY91 showed a modest upturn to 5.5 perct of overall Bank lending. When urban water supply and sanitation are added to urban projects the total share of Bank lending rises to 10.9 percent. Despite the modest role of Bank financing in overa urban infrastuctre investment, for Bank projects the loan or credit is often the major source of funds. Nime of the sixen FY91 projects received more than half their financidng from -1i- Bank loans and IDA credits. The regional distribution of loans fluctates considerably from year to year due to the large variation in loan amounts and the relatively small number of opeations in each region. The ranking in FY91 was ASIA, LAC, EMENA and AFRICA from highest to lowest total urban lending. However, the number of projects shows a different picture, with MEMNA receiving only one loan in FY91 and Africa six. The portfolio continues to be dominated by shelter sector projects and those addressng local government development, but urban environment issues are emerging as a theme. ImplementationI. During FY91 there were 121 urban projects under implementation, for an average of 3.5 years since approval. Supevson effort was 13.7 staff weeks per project with little vanation among the regions. The status of urban projects in implementation was somewhat better than the Piank's overall portfolio, registering 1.76 compared to 1.90 Bankwide. In FY91 urban projects ranked better than Bank averages in all areas except the environment. Completed projects number twelve, with six PCRs issued during the year. Complexity of projects continues to be the main general problem raised in the evaluation of project implementation. Three proects were audited by OED. Urban Sector Work. Sector work used about 533 staff week of resources during FY91 which represents about 5.8% of overall Bank effort in this category. Five gray and green reports and three yellow cover reports were produced. The major sector reports were notable for the comprehensive view that they took of the issues. Two were analyses of the transitional problems involved in reforming former centrally planned economies and two were urban sector studies. The latter emphasie stategy for addresing complex inteled urban development issues. Urban Research. Two major reseach projects were completed during FY91. The Nlgeria infrastucture deficiency project revealed the potential benefits from a strategy of deregulation and increased efficiencies in urban markets. This exerience proved useful in developing the conceptual framework of the Urban Policy Paper. Similarly, the rent control study increased understanding of the linkge between regulatory interventions, in the housing market in this case, and outcomes. The Pipeline. Examination of the pipeline emphasizes the urgent need to increse investment in urban areas as well as focus on policy development and institutional strengthening as keys to better sector performance and overall economic growth. From the baseline of 16 urban projects in FY91, we find an increase to 20 projects by FY92, 24 in FY93 and 33 in FY94. More importantly, the sector work which is needed to provide the analytical basis for the tpe of projects envisaged, is scheduled to grow even faster. From nine sector studies in FY91, the commitment for FY92 increases to 19, and then to 24 in FY93. If the full five-year pipdine of urban projects, including planned urban transport and urban water and sanitation projects, are executed the Bank will have made more loans for urban development in the nrext five years than it did in the previous twenty. Implementing the Urban Polcy Paper. The mechanism for implementing tie UPP is for the Bank to concentre on policy and insdtuinal dewlopment in its assistance. This means tha both products and processes within the Bank will need to change. The pipeline clary demonstes the demand for ur.Ssn projects. The planned sector work recognizes t need for analytical foundations. The principal question thWore is to look at what is required to implement the sfttegy. However, simply incsg the output of sector work is not enough. The prent portfolio finds examples of weak linkges between studies and proect objectives and components. In addition, existing ecator work aes a long tme to complete compared with the proect prepartion cycle It also has rdeatvely high costs with considerable varation among studies. There is, therefore, a strong case for linking sector work more closly to opeaions and maidng it more intepretative of existng research and studies rather than orignal research. The best way to achieve this is to better link the Bank's various analytical exercises. This wil also reduce costs and ensure that the Bank is speang with one voice on urban development questions. It is recommended that measures be tkn to ensure that more learning occurs acros sector work teams and that the research and policy work of the Bank be used as an input to desgning sector work. This would be achieved, in part, through more focused operations support from PRS. The projects themselves also need to change to achieve the goal of increaming the Bak's impact on urban development. Pirst, Bank projects should be situated within the policy and institutional context of the client country. A deliberate strategy to increase policy and institutional development components will require adjustments to the timing of lending opeions and measures to accommodate the inherent risks of such a shift in Bank strategy. The efforts to incrse the relationship among interual Bank tasks such as research, poicy work and sector studies as weUl as more deiberte attention to the processes of disseminat and policy dialogue will move the Bank in this direction. The insttutonliion of the new urban development paradigm is already evidetL Tne themes of planned operations and the much enlarged progam of supporting sector work are. the evidence. Following through on this new strategic direction will require the comrnument of all parts of the Bank and deliber changes to the process of assisting our member counties. - iu - FY91 URBAN DEVELOPMENT SECTOR REVIEW GENERAL OPERATIONAL REVIEW TABLE OF CONTENTS D U(ECTJVE MARY ....... .................... **........... i I. SECTOR PERFORMANCE: ARETROSPECTVEBASELNE .............. 1 Inrouction ...................................... ........ I Urban Projects as a Share of Bank Lending .................. . . ... . 1 RegionalDistribution ofFY9lUdbn Lending ...................... 2 Colj,lmetenPrQject ............ ...*.. .... .. . .......... 9 Complewd2za I....ects................................. 9 Urban Secr Work in FY91 ... .................. ......... ...... 11 Research Completed in FY91 .............. . 12 TowardtheFuture:theUrbanPipelineFY92-FY94 ................... 13 11. THE URBAN POLICY PAPER AND FUTURE BANKLENDING ............ 16 Introduction ........................................... 16 Summary of the Urban Poicy Paper ............................ 17 SIre gtheningh eEffect of Fute Bank Urban Assistance ............... 18 The FY91 Urban Program and thePipeline ........... . ...... . 22 Priorities for Future Research ................ ..... ........... 26 -_he Pipelk .............................................. 28 Inplications for the Bankc ........ .................. 29 m. POVERTY IN THE FY91 PROGRAMv .......... .................. 33 neiidodssus ............................... 33 PIrect Interventions ...................... . s ... 35 Employment ................................. 35 Infiastuhct and Services ........................... . . 35 Houig ................................. 36 CommnunitrParticipation . . . . . ... .. ............... . .... .36 Assessmet ....................... .......... 36 Constraints ............................ 38 LISTOFANNEXES ............ ..... ........... ...... 39 Pardo= of Chpb* I -1d th Anuns wer prepard by Stqphanie Blakbum, Summer Inen L SECTOR PRFORMCE: A RETROSPECTIVE BASELNE hltroduction 1.1 Two decades of urban lending demonstrate the Bank's concern for development in all its facets. Urban development is not a traditional functional sector and is a relatively small sector as defined by the Bank. However, when combined with urban water supply and sanitation it is a larger sector than all others except agriculture and non-project lending.I It is distinguished from other functional sectors i that it is defined in spatal rather than functional terms. It is also different because it draws upon a variety of fields of expertise, from municipal finance to environmental management. 1.2 Most importantly, urban development has a close link with the process of economic development itself. A framework for sector policy has recently been described in the World Bank Policy Paper Urban Policy and Economic Development: An Agendafor the 1990 (April 1991), which stresses the strong linkages between macroeconomic performance and urban growth. This framework elaborates on four major points: the macroeconomic context of urban growth, the constraints to the productivity of the urban economy, urban poverty, and the urban environment. Details of the framework and the proposed Bank strategy are discussed in Chapter II of this report. Urban Projects as a Share of Bank Lending 1.3 Over the last ten years, urban lending in the Bank has been rather cyclical, rising to a peak of almost 9 percent of total Bank lending in 1988 (see Figure 1). Since then, the urban portfolio has reached a low of 4.8 percent (in FY90). Fiscal year 1991 showed a modest upturn in this trend, with more than 5.5 percent of Bank lending going to the urban sector. This rise and decline in the share of urban lending has occurred despite a rather smooth and gradual increase in the overal volume of Bank operations. In FY91 there were no transportation projects that qualified as urban, but there were 7 water supply and sanitation projects in urban areas, increasing the 'direct' urban share of lending to approximately $2,481 million or about 10.9 percent of Bank and IDA lending. 1.4 Despite the relatively modest contribution of Bank lending to total urban investment, the loan or credit is usually the major source of funding for urban projects receiving Bank funding. In PY91 the Bank financed more than 50 percent of the total project costs in 9 of the 16 urban projects that were approved (see Annex 1). However, the average share financed fell from 51 percent of total project costs in FY90 to 39 percent in FY91, primarily due to a few very large projects with minor Bank financing roles. Projects in the I This report deals exclusively with the Bank's definition of 'urban projects although there are clearly closely related projects in water, sanitation and transportation as well as many other projects which invest in and influence the output of urban areas. LAC2 region were financed with a reltively small share of Bank contributions, averaging 34 percent of total project cos as compared to the AFRICA and ASIA regions, which averaged 62 and 56 percent, respecdvely. The EMENA region is in marked contrast to these regions due to the Bank's tiny contribution (only 6 percent of the total project cost) to the enormous Iran 3arthquake Recovery Project. Figure 1: Urban and Bank Lending FY 1981-1991 U8* (bWlion.) Poent Urban $2. . .. - % $0 - . I . . -_ Urban $0.46 $.l $1.47 $1.72 *1.19 #1 *1M Sank 1.94 $16.02 $17.67 ".22 $21.87 $20.7 $22.OSJ Percent Urban 6.9% I.8% 8.9% I6.% 4.8S 6.6S | Urban Bank P Pent Urban sine,t Anne taRport. Regonal Distribution of FY91 Urban Lending 1.5 The regonal distribution of loans fluctuates considerably from year to year due to the large variation in loan amount (from US$3 million to US$250 during FY91) and the small number of loans in each region. EMENA moved up to second place on the basis of one US$250 million loan while AFRICA fell to the smallest region in terms of lending volume despite processing six opetons during FY91. The urban portfolio over the last five fiscal years (see X The capialized niames AFRICA, ASIA, EMENA and LAC refer to the Bank's regonal desigaions. -2 - Figure 2) shows the anual rakng caging for every egio over the perod with ASIA going from the largest to the smalest and back again over a four-year perod. Figure 2: Urban Lending By Region 1200 1 0 ........... ....................... ..................... u a I Soo ........... ...... .................. 800 . .. ....... 0 n 200 . ..... ............ 0 8 8 as 87 88 so 00 0I 02 Fiscal 'afs Africa Asia EMENA ° LAO 1.6 In relation to the Bank's overal operations, urban lending vares from 2.9 perent of total lending in AFRICA to over 7.3 percent in ASIA (See Figure 3). The ASIA region received the largest volume of boti total and urban lending. In the EMENA region, urban sectr lending made up 3.8 percent of total Bank lending. Although Bankwide lending in LAC is less than both ASIA and EMENA, urban lending is latively strong in this region, contributing to an urban share of 6.9 percent of total lending. -3- Figure 3: Urban and Bank Lending FY 1991 USS (Ii Woos) P.unet Urba s8 ..8 $4 ,........ . . ..... ..... 4S $2........ ...... ... ....... 2; AFRICA ASIA EMStA LAO Ufban $0.09 40.64 $0.26 $0.86 Bank $$S 7AS "M".4 Pecent Urban 2.% 78% 8.8% 6.0% M Urban CM Sank --Percent Urban Souroee Annual Repo 1"I 1.7 IDA lending for urban projects is conistent with the generd level of development among the regions as well as the speific ligibility of the borrower. No lDA credits were issued in either the EN A or the LAC regions in the urban sector in FY91 (see Figure 4). However, lending in the AFRICA region cossted almost enty of IDA credits, with US$85.9 milion in credits being issued, out of total lending of US$98.3 million. Only one project-in Mauritus-was finded with an IBRI) loan. In the ASIA region, 17 pent of the lending was through IDA credits, contributing to two projects, one each in Vanuatu and China -4- Figure 4: Urban Loans and Credits FY 1991 UW (l(ilhon) 4 00 - s 2 00 ............ ... ... .... ....gs 100 ....... .'' . ; . ... 0aI AFRICA ASIA EMENA LAC IBIR D 112A4 450.7 260 664 IDA 66.0 02.4 0 0 TOWhaM 98.8 648.1 260 844 3 IBRO IDA Total 1.8 Urban projects were supported in countries that range in populap on size from 100,000, VanuatU, to 1.1 billion, China (see Annex 2). The share of the population in urban area of ese countries also varies gmady. In Burkina Faso, for example, it stands at 9 percent of the total populaton, while in Argenina it comprises 86 percent. The overal share of urban dwellers among the AFRICA borx.wers is 18 percent of the tot popuaton, while in the ASIA region this share is 50 percent. The only EMEMA borrower, IDan, is 56 percent ubanized, while 74 percent of the population of LAC borrowers are urban dweUlle 1.9 A large number of the urban projects in PY91 are in middle-income economies. Only 6 of the 16 projects qualify as low-income conomies with a GNP per capita of US$580 or less. In fact, six projects are located in counties with a GNP per capita of more than US$1,000. AFRICA 1.10 The latively small amount of urban lending in AFRICA in FY91 is patally the result of the smal borrowing countries and the concomitant small-sized loans. Although no loan exceeds US$30 milion, the loan per urban dweler in al cases is above US$15, with the average for the region US$17.17 per urban dweller. AFRICA's FY91 share of 6 of the 16 new urban projectsworkdwideis nothigh. The region processed 8 of16 and 7 of13 urban operadonsin -5- FY90 and FY89, spectively. Most of the bonowing countries fall into tie low-income category, with a GNP per capita below US$580. Th also explins the igh sh of IDA borrowing in the region. The tpe of prjects reflects the needs of these low-income countries. All of the projects have poverty alleviation as one objective and two of the projects focus spcifically on fte linkage between public works and the provision of employment opportunities end access to basic sevices. The other projects in the region include two urban development project as well as an environmental project and the Multi-Sector Project, which facilitates the strctnal adjustment program in Sao Tome and Principe through technical assistance and infstructure provision. 1.11 The Publc Worla and Employment Project in Niger pnmarily focuses on creat-g new employment through the private sector oy stimuating small local private contactors and consulting firms. The improved slidls of the workers and the competitiveness of the firms are intended to increa the oppormities for future employment and demonstate the effectiveness of labor-intensive projects. Although the mechanism for this project is straightforward infrastructure rehabilitation, the o erall goal is to offer the private sector tining in the ways of competitive business to ensure it will be successfil and continue to create jobs in the future. Similarly, the Burldna Faso project aims to improve the technical skdlls and efficiency of local contractors through a program of infiastructure rehabilitation integrated with labor force training and project monitoring. 1.12 lhe Urban Development Project in Djibouti assists the government in implementing its urban sector development plan primarily dirough strengthening the policy- makdng franework to enable increased efficiency in urban management as well as to enhance cost recovery practices. A study of the benefits of government decentraliation in Djibouti is also included. Similarly, the FYrst Urban Development Project in Uganda is designed to improve uran maement through the strengtheing of institutional capacity of local government, both in the financial and land manement areas. 1.13 The only explicit Environental Monitoring and Development Project in the urban portfolio is located in Mauritius, an economy which depends on its idyllic surroundings for tourism. This project assists she govemment in implerenting the Environmental Investment Progtam by establishing the policy and institutional arangements necessary to facilitate the urban envinmtal management of the island. A system of envimnmental monitoring will be developed to reverse the trend of envimnmental degrdaton. These policy reforms are designed to preserve the natual beauty of Mauritius and encourage enough tourism to keep the economy viable. 3 The 1991 World Development Report clasiffes low-income economies as those with per capital incomes of US$580 or less in 1989. -6- ASIA 1.14 The lagest share of urban lening in FY91 was in the Asia regon. The projects range in magnitude from a total project cost of US$5 million to US$500 million, with the lening per urban dweller anging from US$0.29 to USS142.86 in China and Vanuatu, respectively. The variance in loan size is a result of the diversity of the countries in the region. Nevertheless, the issues addressed are surprisingly similar especily in the two-tirds of the loans for projects classified as "urban development." In all cases, this designation denotes a comprehensive operation that often emphaizes the role, funcidon, and management of local government units. The remaining loans are for shelter sector investnents and reforms. 1.1S In Indonesia, the Urban Development Project in East Java and Bali works toward improving the quality of urban infastructure investment and service delivery. This objective is to be met not only through the support of infstucre investment, but also through improvements in infrastructure programming, fnancial planning, and local revenue genration techniques and local government institutions. The Third Jabotabek Urban Development Project in Indonesia focuses not only on infrastructure provision and development, but also on buildiag the capacty of key urban institutions such as provincial environmental protection agencies and urban spatial management and monitozing agencies. 1.16 The overall objective of the China Mediwn-Sized Cites Development Project is to improve living conditions in the target cities of Cahngzhou, Luoyang, and Sashi tirough comprehensive planning, increased efficiency in the use of existing facilities, and more approiate financing mechaisms for urban development. A policy reform package accepted by each city during negotiations incorporates four main areas of concern: crosssectorl planning and management; use of existing municipal assets; financial management and cost recovery; and investment and project design criteria. The general goals of increasing efficiency, expanding economic acdvity, and improving planning are met through specific sectral components, including urban planning and management education, health, transport, water supply and sewerage, housing, industry, and pollution control. As the Appraisal Report states, this project 'represents a uiique deparure from past practices, which focused on disrete investment undertaken without the benefit of a clearly-articulated urban agement frameworkc, with priorities supported by appropriate policy, financing and institutional refoms. 1.17 The Housing Project in the Republic of Vanuatu, reflects the move toward formulating sound policy structures in the urban housing and fimance secwtors. In addition to providing for improved water and solid waste facities, the Housing Refinance Facility will be strengthned, and policies for housing and urban development will be worlkd out. The objecves of this project are similar to those of the Korea Housing Prect, also a sector-based projecL 1.18 The Korea Housing Project involves policy reform objectives within a s.2efic urban sub-sector rather than across many urban areas. This project comes after a seies of projects that at first worked towar the provision of low-income housing to individual clients. -7- The next, more ambitious plan was to reshape the overall agenda for specific nstitutiors receiving Bank support. he projects encouraged the strengthening of specfic institutions in the housing sector, having succeeded in providing more affordable units in public programs. This project concentra on sector-wide concr and policies that link the housing sector to the rest of the economy. 'The present Bank stateg thus emphasi the need for housing policies, programs and regulations to not only reinforce agreed sector goals but, in tun, to fit within the country's overall economic and social priorities.'(Appraisal Report) 1.19 Ile Papua New Guinea Special hItervendons Pyojea encourages employment in the construction industry and provides assistance to entrepreneus thIrough business etension services. This project is a part of the structural adjustment lending progm in the country and works toward developing market-based housing production and finance systems, as well as strengthemng the National Housing Corpomion and encouragng the involvement of the private sector. EMENA 1.20 The EMENA region accounts for one-fifth of urban lending in FY91, all in one project. The Ealbhquake Recovewy Project in the Islamic Republic of Iran is large by urban lending stndards, but small in comparison to the overall cost of addressing such an emergency. The total project cost for agricultural and housing reconstuction as well as for sesmic risk prevention and mitigation amounts to US$4,172 million, dwarfing the Bank's loan of US$250 million. The balance of the cost was provided by the Govemnment of Iran. The Bank loan not only provides assitance in the development of a long-term response to seismic events but also uses intemational prcurement to ensure greater efficiency in the economic recovery of Iran. LAC 1.21 All tee of the projects in the LAC region involve municipal or provincial development, together maling up 29 percent of the urban lending portfolio. In Argentina, the Provincial Developm Profect encourages the provinces to undertak adjustment prgrams in line with the national adjustment program by providng financing for institutional development and by strengening the provincial governments. These policy framework reforms wil be supported by physical investment in public infastructue and continuous ae s t at the national and provincial levels. 1.22 The MudcipalDevelopnent Projects in Ecuador and Colombia work toward fiscal autonomy of local govenments through increasing the revenue-raising capabilities of the local govenments and by increasing their techical capacty for admi.on and information systems. The Colombia projet spcificaly pls to register 4.3 milUion pacels nationwide to complete the municipal cadastre. Both projects also strengthen the national development financil institution and direcdy invest ininfratructue. - 8- 1.23 During FY91, 121 projects were under implementation the urban sector (see Annexes 5 though 8). AFRICA had the fr-gest number under implementation, 38 projects, followed closely oy ASIA with 37, then LAC with 26 and EMENA with 20. Of the projects under implementation, II projects closed during the fiscal year. 1.24 Projects under implementation range from the traditonal urban development project to housing, emergency reconstruction, public works and employment, and. ,ne urban transport projects that were initially classified as urban. These projects average 3.5 years since approval, with some having closing dates as far in the future as FY98. Average effort spent on supervision was 13.7 staff weeks with little variation among the regions. ! .25 In FY91, the average overall status rafing for urban sector projects was 1.76,4 as compared to the BanWide average of 1.90 (see Annexes 9 and 10). All of the specific performance ratings were better than the Bank average except for environmental aspects, which rated 1.33 as compared to the Bank average of 1.25. The environmental area's poor evaluation resulted in only 36 percent of urban projects rating PI' on this criteion. 1.26 The proportion of urban projects that were rated '1U, or satisfactory, during FY91 was 38 percent, as compared to the Bankwide proportion of 27 percent (see Annex 11). This is notable, especially since, in all of the performance criterion ratings but two, the proportion of projects rated one is greater in the urban sector than in the Bank overall. 1.27 This relatively strong perfornance by uban projects compared to Bank average performance ratings results in a similarly strong positioning of urban sector projects as compared to other sectors in the Bank (see Annex 12). When ranked among 12 other sectors within the Bank, the urban sector nks third behind only Population and Industrial Development and Finmce, and is tied with Energy. Among the performance criteria, project management performance and the procurement process both rank urban projects as third. However, this very high rank overall is not reflected in aU areas. Not surprisingly, the urban sector ranks a low ninth for environmental aspects, which are among the most recent concems for urban develpment projects. Completed Projects 1.28 Projects completed during FY91 cover a range of urban lending actvies (see Annex 13). The projects included urban development, urban engineering, low-income housing, and flood reconstructon projects. The average duration of a project was 5.25 years, and half 4 The rating system is from I to 4, with I meaning no or minor problems, or satifactory, and 4 meaning major problems not addressed adequately. -9- of the projects were completed between one and two yes late. However, the Mexico I ow- Income Housing Project was completed two years early, a testment to its success. 1.29 The two housing projects, in Ecuador and in Mexico, as considered highly successful for a number of reasons. Both projects strengthened their respwecve national housing banks considerably. Technical assistance was important to the central bank as well as to sub- borrowers in both projects. The line of credit established in the Mexico project allowed collective lans to both public and private sector intermediaries representing low-income beneficiaries, with nearly 60 percent of the loans going to the private sector, primarily to housing cooperatives and civic associations. These projects highlight the importance of a three pronged approach aimed at (a) fostering the replicable growth of public investment in housing for the poorest segment of the market through innovative low-cost solutions, (b) stenghendng the national housing boards and (c) supportng a dialogue with the governments focusing on key housing sector issues. 1.30 The six PCRs received v'ere all rated at one-no major problems, or safisfactory- at their completion with the exception of the Recife Metropolitan Regional Development Project. -This project tackled 183 actions through 33 agencies, a formidable task. The project did not achieve the over-ambitious goals set for it. Nevertheless some interesting lessons can be drawn. According to the PCR, the lack of consideration for the local electoral calendar greatly hindered the project, as did the rapid democratization of the area, since the project was designed to fit into an authortrian institutional framework. 1.31 The urban development projects analyzed here show that complexity has been an overiding problem. The all-encompassng nature of these projects unquestionably leads to aministrative complications not only in the Bank, but also among implementing agencies and in relationships between the Bank and the borrower. Simplicity is the key to keeping such comprehensive aopertions effective. Utilizing existing institutions and local consultants also will greatly enhance the sustnability and implementation of a project. Wherever possible, systemadzing the method of monitoring project progress will be useful to the implementing agencies. Close supervision is probably another detemlinant of success. 1.32 lhree projects were audited by the Operations Evaluation Department dunng FY91, all of which were urban or regional development projects. These analytic documents bring out issues similar to those raised above. The Lesotho Urban Development Project suffered from potibl adversity and the lack of policy considerations. Any institutional development effort must take into consideration the likelihood of acceptance at all levels by the local government. The Korea Second Gwangju Regional Project findings show the importance of comprehensive prepation of project sub-components, as well as a monitoring mechanism that is content with the stated goals of the project. Here, the sub-projects were monitored caully without consideration for the overall regional development objectives that, thereby diluted the justification of the projects at the time of appraisal. Finally, the audit of the Morocco Urbn Development Projects emphasized the local impacts of the project and the need for better tegration of the physical and financial aspects of project prepartko and implementatin. - 10- Urban Sector Work In FY91 1.33 In FY91, urban sector work at all stages of preparation used a total of about 533 staff weeks, making up 5.8 percent of the Bank's overall investment in sector work of 9,220 staff weeks (see Annex 4). This is comparble to the urban share of Bank lending in FY91 but low for the programmed increase in opeations (see Chapter II). There were 9 sector reports issued dunng FY91 of which three were in grey cover, two in green and four in yellow. ITis compares with 7 in PY90 and 2 in FY89. 1.34 The five grey and green cover reports completed in FY91 were divided evenly between local government finance and housing along with a global urban sector review. The previous trend toward local or municipal government issues continues but it is the attention to decentralization as a local government issue which is most noteworthy. The ongoing work emphasizes both the questions of functional and fiscal decentralization in various forms. Housing and related land studies continue their traditional importance but the main issues covered are changing. All three housing reports were conducted in reforming centrally-planned economies and addressed important issues in the transition toward more market-based economies as they apply to the housing sector. Anothe trend in swtor work evident in the FY91 program is the pursuit of broader urban or infrastructure straties. The one yellow cover report concentrated in this area was accompanied by four similar white cover reports and the emerging themes in those studies are increasingly the functioning and productivity of urban areas rather than the more simplistic mapping of urban growth and services of the past. Urban environment, the newest of urban research themes, has only one white cover position in the FY91 program which may be the start of attention to the special aspects of environment as they apply to urban areas. 1.35 Completed sector reports include two works on housing policy, in Hungry and n China, and two urban sector studies, in Mexico and in Madar. The housing policy reports both aim toward creation of a market-oriented system to produce housing more effiently. Each country faces different obstacles, although both studies stress integrating sector reforms in the framework of broader reforms. In Hungary, the development of policies, institutions, and laws that will engender a more efficient housing system involves a considerable effort to deregulate the existing system. According to these reports, subsidies should be effectively removed from the housing sector, and new financial instruments should be implemented through the National Savings Bank. Along with these more technical needs, a coordinatig policy group needs to be formed to integrate issues of social welfare, finance, and fiscal and regulatory policies associated with an evolving market-onented system. 1.36 Similarly, the China report encourages resticting the role of government in the major areas of the housing market Property rights need to be clarified and the tie between workers and their employers in the housing market should be broken. Rent reform should work toward market-rate rents, although this will take some time to complete. The regulatory environment should be modified to accommodate new producers of housing as well as new buyers. The financial sector, again, needs to make new types of financing available to housing - 11 - corporations and developers, and these changes will require substantial.changes in the regulatory and legal environment. 1.37 These two reports, though completed independently, come to conclusions that support the Urban Policy Paper positions on tfie role of the regulatory environment in encouraging urban productivity. They also share another charactersc in being the only products costing over 100 staff weeks to complete. This reflects the comprehensive and complex questions that need to be addressed in these reforming countries and has implications for the future of sector work as discussed in the following chapter. 1.38 The two urban sector studies, in Mexico and in Madagascar, focus on broad issues that influence the strength of urban economies. The Mexico study concentrates on decentralizaton and urban management. It supports efforts by the Mexican government and suggests methods for involving the state and municipal governments in program design and execution. The allocation of resources between the three tiers of govemment is a major area of concern, and it is suggested that the municities be given greater power over property tax rates and other local revenue sources. Similarly, the Madagascar study stresses the importance of clarifying the government transfer procedure, along with the improvement of revenue generation and financial management at the local level. In addition, urban land management, housing finance, and urban transport are pointed out as areas that will enable the urban sector to work more efficiently. 1.39 Again, the issues brought out in this year's sector work reflect the growing understanding of the major areas of concern for strengthening the urban sector. Local government finance, housing finance, urban land management, and the strengthening of urban institutions all contribute to promoting urban productivity. The application of the ideas set forth in these sector reports through operations should result in more effective urban projects. Research Completed In FY91 1.40 Two major urban research projects were completed during PY91. The first, entitled A Study of the Impact of Irastructural Deflciencies on the Nigerian Indusnial Sector and Their Policy Implicaions, was the first systmatic empirical study undertaken that investigates the relationship between deficient public infrastructure services (as inputs in the production process of manufacturing firms) and the productivity of industry. This issue is important for policy and lending operations because inftu investment affects economic growth and development. The research, based on a survey of manufing esablishments, docmented empirically: 1) the extent of public inas deficies; 2) responses of private manufacturing firms to these deficiencies; and 3) related costs of various private prvaons to sutute inadequate public-sector supplies. One of the main policy conclusions was that dergulation will create contestable markets that should lead to potential efficiency gains from economies of scale and scope through private-sector participaion in emerging markets. Within the Bank, the study provided the general framework for the recently published Urban - 12- Policy Paper, Urban Policy and EconoMic Deelopment: An Agenda for the 1990s, which is discussed in the next chapter. 1.41 The second major research project completed during FY91 was Rent Control In Developing Countries. This project assesses the welfre losses and distributional impacts of various rent control regimes and evaluates alatwve stategies for reform. Case studies were produced of the nature of rent contrl regimes in Kumasi, Ghana; Bangalore, India; and Rio de Janeiro, Brail. In each market the costs and benefits of rent control to landlords and tenants were stically estimated, including not only the reduction in rents, but any welfare losses that could be created and the net transfer efficiency when benefits were calcuae net of such loss. Where possible, the impact of the transfer on income distribution was calculated. Options for reform of rent control regimes were evaluated in light of the findings. It was also found that rent control often did not .neet its redistrbutive goal. In Cairo and Bangalore, no relationship was found between the distibution of rent reduction nor of benefits and household income. in Kumasi, Ghana, there was no patten to the distribution of rent reductions and benefits were moderately progressive only because losses increased with income. Toward the Futre: the Urban Pipeline FY92-FY94 1.42 FY91 represents a plateau or baseline in a quantitatve sense. Both the number of opeations and the output of sector work remained unchanged from the previous year and not above the longer term trend. However, FY91 is a critical year in three important ways. First, the recently approved projects and completed sector work already point to a new direction for the Bank's urban assistance. Second, these new themes are well reflected in the forward lookdng work programs of the Bank. And third, the planned prgram of projects and sector work move on a strong upward path starting in FY92. 1.43 After averaging only 16 new urban projects a year over the past four years, FY92 moves up to 18, FY93 to 24 and FY94 to 33. This increase adds almost 50% each year to the number approved the previous period. For sector work, the trend is even more dramatic with the planned output of grey, green and yellow cover reports going from 9 in FY91 to 19 in FY92 and 24 in FY93. Figure 5 illustrates the longer-term trends. - 13- Figure S: Urban Projects and Sector Work Trends 36 N sot ....................I................... u2 0 ......... N u 1 6 ................... .................. m b 10 I r 50 ......... .................. FYMU FY80 FY00 FY01 FY92 FY93 FY04 Projects -4- Sector Studies 1.44 The urban lending program, as planned for the next three fiscal years, also reflects some of the shifts in focus in terms of issues. Trditional categories of urban lending such as local goverment and housing remain important. New emphasis appear as urban environment and poverty projects. The largest single group of new projects is called "urban or infiastuct strategy", emphasizing the need for an integrted approach, policies and programs to the overall development of urban areas. In the case of municipal development projects, the following themes are often included: definition of distribution of respwonsibilities between central and local government and increase in the accountability of local governments; efforts to improve mobilization of local resources; improvement of management capabilities and better budgeting and accounting systems. In the case of housing, the trend toward using housing finance entities as project intermediaries continues with increased attention to the linkages with whole fimancial sector. However, a new set of issues which emphasize the importance of reforming policies and regulations in the sector to create an enabling environment for the private sector is emerging in shelter projects. In the case of igfrastucture, the Bank will continue to finance physical improvements but concern about making planning and progamming more demand-driven will grow. All this is linklrd to the evidence that poor infrasttue has a serious impact on urban productivity. In the case of land the Bank is also concerned about creating an enabling envonment to make land markets work The orientation here is to related issues such as property rights, regstaton and the reguatory framework for the use and development of land. - 14 - 1.45 Ithere are also changes external to the Bank which are beginning to exert considerable influence on the urban agenda. Substantial sector work in the reforming countries of easen Europe promises considerable demand for urban assstance in the future. The ability to finance the traniton to market pricing and allocadon in housing and the need to address serious urban environmental issues are likdy to be high on the list of priorities for the growing program of urban lending. This also represents a new challenge for the Bank as it raises a new set of issues requiring a different policy package. The challenge in the next few years will be to jugp.e two distinct agendas: (1) the productivity agenda of low income countries and (2) the transiton process of former 3ocialist economies into market-oriented economies. The former implies some important changes in project rationale and design; while the later involves a great deal of exploration of new areas of development. 1.46 The agendas are compounded by renewed concerns for the environment and the urban poor. The reconciliation of the productivity, poverty and environment agendas is not easy. Although these themes can be mutually reinforcing the message may be complex. For example, the deregulation necessary to let markelt work better may seem in conflict with the message that the exteralities of urban pollution require regulation. How to formulate and communicate this message will be a challenge. - 15 - UL THE URBAN POLICY PAPER AND FUTURE BANK LENDING hitroduction 2.1 This chapter lays out a stategy for implemening the rectly approved policy paper, Urban Polcy and Ecnomic Developmen an Agenda for the 90s, known as the UPP. It first summars the major findings of the UPP and then explores the implications for the Bank. Recommendations for chmge are made where appopriate throughout the chapter. Two major shifts in the Bank's urban activities are suggested. First, the type of policy and institutional development projects implied will require more analytical work than in the past. Second, there will need to be increased efficiencies in the use of the Bank's scarce resources if this is to be accomplished. This chapter argues that the need for stronger analytical foundations for lending is understood and is currently being pammed. However, left to present methods and practices, te resources available wil not be sufficient to ensure development of the quality products which are envisaged. This chapter shows that the volume of sector work necessary to underpin the type of lending already programmed will require a simpler, more efficient style of sector work which involves closer collaboration among various Bank units. In particular, the opertons support lge between research and policy staff and the opations complex should be shiftd toward asisting more with sector work, ratier than more traditional project preparation and appraisal tasks. 2.2 Urban lending from the Bank almost tripled in the last half of the 1980s compared with the first five years of the decade.5 This trend continues with proposed new urban loans growing by one-third in terms of value, and by one-half in terms of number, over the next five years.' As lending in the sector has been growing, the importance of policy in sustainng growth has become unquestionably clear for urban as well as other types of investment. This conclusion has provoked an even more rapid rse in planned sector work to provide the basis for policy development and institutional strengthening ecessary to support the growing lending program. It is, therefore, no coincidence that the Bank's position on urban development, expsed in the new policy paper, highlights policy issues, linkages to macroeconomic growth and insttutional development. The questions that the Bank must fice are exacdy what is to be done, how do we are to do it and how resources can be used effectively to carry it out 2.3 This section of the FY91 Sector Review examines these quesdons by taking the UPP and askdng how Bank opations might be changed and strengthened to cary out the new mandate. These questions take on increased importance in a sector where there are 109 opeations proposed for the next five years which is only slightly less than the 134 operations approved in the entire preceding decade. In fact, if the urban tanport and urban water supply Actual growth was 2.8 times between FY81-85 and FY86-90. The definition of urban lending used excludes urban water supply and sanitation as weRl as urban ftrsport projects. - 16- and sanitation projects are included (which tiey were in some previous years) more urban projects will be approved in the next five years thm durin de entire twenty year history of Bank urban lending (191 vs. 188). The plan for sector work on which to base these projects shows even faster increases - the number of studies will double next year and increase by a third more in FY93. The purpose of this chapter is thertfore to examine how such an ambitious incease in Bank assistance on urban development can be used to achieve the broad goals outlined in the UPP and their positive linkage to basic national development objectives. We specifically look at the recently approved Bank operations and those projects and studies identified in the future lending and sector work programs, to see whether and how they reflect the directions outlined in the UPP and, in turn, how the Bank's own processes wiU need to be changed to cany out that program. 2.4 The UPP is both a retrospective and prospective report. It tkes stock of twenty years of Bank and other donor experience with urban lending, criticizes the shortfals and analyzes why they occured. It looks ahead in order to provide a policy framework and strategy for inking the Bank's urban assistance to the achievement of broader development goals and suggests the content of that approach. Approval by the Board is an endorsement of the paper's basic views and recommendations on how the Bank's impact in the sector can be strengthened. This chapter relies, in part, on information about the FY91 through FY94 operations to assess how the UPP is being implemented. Summary of the Urban Policy Paper 2.5 The Urban Policy Paper, Urban Policy and Economic Developmem: An Agenda for the 1990s, proposes a policy framework and strategy to link the World Bank's assistance in the urban sector to the broader objectives of economic development. The new framework was proposed following an assessment of World Bank expeience with govermments and donors in the urban sector. The assessment showed that insufficient attention has been devoted to the policy and institutional development required to manage urban growth. Deteriorating infrasrctu, weak municipal institutions, and over-regilated urban markets have constained the productivity of the urban economy and its ability to generate increasng incomes, employment, and services for a growng number of the urban poor. Population pressures and inappropriate urban policies have in turn exacerbated a deterioing urban enironment. The consequences of weak policies and institutions are evident in most countries, and they have direct impacts on maeconomic performance. 2.6 The paper concludes that previous lending for urban development has been largely ineffective in assisting developing country officials to respond to the challenge of rapid urbanization. The UPP makes four arguments for the ineffective contribution of Bank urban assistance. First, projects have typically been of very limited scope, especially in relation to the size of the problem being addressed. The second difficulty has been that urban development was viewed very narrowly. Housing and water supply were the two most common types of urban projects and for many countries the only Bank assstance. Third, within these narrow in stment categones Bank-assisted projects typically concentrated on physical implementation. The - 17- successes in iltroducing and executing better chnical solutions are considerable but the impact beyond the ; zific projects was often minimal. The fourth problem is at by focusing on agencies delivering specific urban services, and by concentratng on imprwving their prqect management and implementation capacity, the Bank often did not have operations-based contacts with the range of countrpas needed for policy reform and overall institutional development in the sector. 2.7 In the past much of urban development assistance was concentrated on urgently needed low-cost solutions to shelter and a varety of urban infrashucture. This was carried-out in an environment where the public sector normally played the magor role in their provion. The UP? reflects on the experience of earlier operations, as well as the evolving knowledge of how policies, regulations, and other public and private interventions affect urban development and economic growth. The UPP concludes that policy and institutional development questions must play a central role in Bank assistance and suggests specific measures which are discussed below. 2.8 After ide itifying the major issues for urban development, as well as some specific measures, the UPP presents a four-part agenda for the 1990s. First, the paper calls for reducing constraints on urban productivity. Specifically, it focuses on the need to carefully consider how infrastructure deficiencies, an inappropriate regulatory framework, weak municipal institutions and iadequate financial services may be constraining urban productivity and, if so, how a remedy can be pursued. The goal is to have policies and programs take a more "demand driven' view than has been the case traditionally. That is, successful urban development requires an integrated view of how infrastructure and regulaons appear from the users' point of view-individual households and businesses. 2.9 A second piority of the UPP is to find ways to arrest (and reverse) the growth of urban poverty. Here, the paper calls for a three-pronged approach to address the economic, social and -safety net' aspects of urban poverty. A third priority of the paper is to develop environmentally susainable approaches to urban development. By this it means, collecting data on urban environmental problems, raising awareness of the severity of these problems, developing city-specific strategies and curative programs, and formulating policies and incentives to address envirnmental issues. Finally, the UPP calls for more and better research in the urb sector to provide a sound bass for future action. This agenda for the future serves as a guide for the implementation approach and strategies discussed below. Strenening the Effect of Futre Bank Urban Assitn 2.10 As noted earlier, the position of the UPP is that the Bank's activities in the future must focus on policy and institutional development. MTe quesion, then, is how to 'implement' 7 Alleviating urban poverty and developing effective responses to the growing urban evirnmental crisis are discussed more extensively !n the Uran Policy Paper pp. 67-75. - 18 - this recommendation of fte UPP. This chapter explores this question and look specificaUly at chges in the Bank's "products" and 'processes' which will ensure that UPP's four-part agenda is achieved. The tms produc and process are used to distinguish between the Bank's basic written outputs such as rearch and study reports, and projectappraisals and the activities which generate, lnk and disseminate these products. The case for attempting to influence policies and institutional practies beyond the Bank's projects is persuasive but the question of how to do it effectively still needs attention. 2.11 Before discussing the process of preparing and implementing a Bank project it might be useful to briefly examine the continuum of produca or intermediate inputs that the Bank undertakes as part of its strategy to assist its member countries. Research is a basic component of Bank activity. .Country and sector stategies rely on research, often underken within the Bank. The findings of resarch, are also reflected in the Bank's policy work. The most formal policy documents are those, susia as the UPP, that are broad, in terms of coverage of issues, geographically generalizble, and endorsed at the level of the Board. Policy papers are also prepared on selective subsector issues where the advice is normally more detailed. The next proiucts in the Bank's repertoire are the country strategy papers and the economic and sector studies. At present, sector work covers a wide variety of exercises, from basic reserch to interpretive studies of how more generl policy and research advice should be adapted to the circumstances of a pardcular country. Projects, which logically follow sector work in the output continuum, are obviously not the Bank's only products but they are now, and are likly to continue to be, the principal vehicle for assisting developing countries and ideally their design and implementation should be significantly improved by the other products. Finally, there are fiequent project-financed studies whose results and implementation are important Banassisted products in their own right and whose development can often play an important part in a sustained Bank-borrower dialogue. 2.12 Tbis continuum of research, policy work, country strategies, sector studies, projects, and project-financed studies are not the only activities of the Banr In fact, there are major activities related to the 'product cycle' that do not usuaRly result in formal separate documentation. All central research divisions in the Bank spend considerable time on operations support which is intended to link the research and policy work caried out in those divions to the country staegies, sector work and projects managed by the operations complex. Another form of non-lending assistance that is focused on policy and institutional development as indicated by the Urban Policy Paper is the Urban Management Program (UNP) pxposed Phase II activities.' Of course, the considerable effort put into project supervision is a furffher a The Urban Manaeent Pmgram (UP) is a major iniiive by the UN family of organizations, together with enal support agencies (ESAs), to strengthen the contribution that cities and towns in developing counties make toward economic growth, social development, and the aleviation of poverty. The Program develops and promotes appropriate policies and tools in five substantive areas: municipal finance and administion,and management, Infrastructure management, urban environment, and the alleviation of poverty. In order to assst - 19 - important Bank process tat does not have a formal output like reearch sudies and projects, but does ultimately have implicatons for the resource use and efficiency of Bank lending. 2.13 Examining the process of producing the various Bank products, in light of the ameems raised in the UPP, ises wveral questions. Does the fact that esponsibility for the various products is widely dispersed in the Bank have an adverse effect on efficiency with which work is being produced? l tiere is reasm to believe that this may be the cae, both because of the sheer volume of work in which the Bank is engaged and because there are few formal mechanisms for linking the vanous activities. There are problems in the devoping countries as well where, as previously discussed, the Bank's client in most projects raely has . significant role in making or implementng sector policy. This means that projects can be designed quite independently of relevant research and even sector work. One of the reasons that this happens, aside from poor intnal Bank coordination, is that responsibility for sector policy rests often with a different ministry than the sponsoring agency for the project. This helps explain why few housing projects address taxation of the sector and why it is rare for a municipal development project to tackle issues such as the local-central fiscal transfer system. A furither contributing factor may be a narrow view of the issues which Bank projects need to confront. For example, when institutional development is addressed it might be assumed that objectives at the level of the institution can be taken as given, rather than trying to deumtine whether instiutional objectives and behavior are consistent with sector or macroeconomic goals and policies. The implicit assumption seems to be that investigating such questions is the responsibility of research. Inadequate communication about issues of this sort bas meant that the work geneaed by researchers could not be directly used by the Bank's front lin clients. 2.14 One clear message of the UPP is that the ad hoc, action-ddven approach of the past has not worked well. It may be that a more deliberate effort and time is needed to ensure that Bank projects are grounded" in the existing body of current thinldng in the country, experience and relevant research. If the Bank's assistance is to have a more significant impact on urban development, each prkNiect needs to be viewed as an opporuity to investigate and ensure that policies and regutations are contributing to the overall goals artculated for the urban sector. Policies in the sector should be examined for internal consistency, claity, and for their contribution to broader economic goals. Well-intended policies have frequently been sabotged by a plethora of poorly constructed and contradictory ndes and regulations and guidelines which fail to consider the operation of markets and their effect on private, as well as other public setor, actors. The concern for the coAbility of an insdtution to successfully implement a project is similarly expanded under this view of urban development. In addition to the need for technical expetise and manageral capability, a successful development institution will require in building capacity to develop and implement appropriate policies, the U1P is working to establish effective partnerships with national, state, and local government, the private sector- including NO0s, as well as with ESAs, in the areas of applied research, dis n of information, and sharing experience of best practes. -20 - management that has a breadth and depth of understanding to ensure tdat the acdvities of the institution are contributing to overall urban development goals and ojectives. 2.15 What might a more policy-oriented, institutionally-capable, research-grounded urban project look like? Using, as an example, the housing sector, the approach described above would suggest that in a country facing a seious macroeconomic distortion, such as a fiscal deficit, poliies in the housing sector should be designed in a manner consistent with addressing the national problem. EVperience tells us there is a need to focus on policies toward subsidies in situations such as this. While it is common to find a general statement about assting the poor in hoasing sector policies, a careful analysis of the actual explicit and implicit subsidies in the sector, and their incidence, typically reveals large untargeted or randomly distributed subsidies. These result from a situation in which there are a multitude of independent regulations and practices, most of which were never assessed for their impact on subsidies. Therefore, a new style urban project in this sector should lead to a reform progam which is based on an analysis of actual or measured subsidies in the sector, and which is consistent with mac-economic goals with respect to subsidies. The reform program would need to encompass changes in institutional goals, policies, and practices aimed at achieving the national objectives. We now turn to the question of how such products might be produced. 2.16 The process required to support increased policy and institutional development in the Bank's assistance has some spedal implications for the Bank's products. Research will increasingly be guided by the policy-maker's demands for analytical foundations on which to reform and construct good sector policy. Similarly, the Bank's policy work will need to cover al of the most common subsectors where the Bank is active and will need to be as tr.nsparent or accessible as possible in order to be usefu to those workdng in the largest number of different settings. Since most of the reseach and policy work is not undertak in the operaions complex, the effort to disseminate and translate these products for operations is important. The main vehicle for doing this will be the operations support program of central units where pincipal sector policy themes will be areas of concentaton. In order to maximize the impact of research and policy work on projects, the relative balance of opeations support should shift toward assisting with sector studies rather than the more traditional project prepartion and appraisal word However, an important role for PRS, with considerble economies of scale possible, can be the application of diagnostic tools focused on policy and regulatory matters. These tools are presently under development for housing regulations, land markets and some environmental issues. 2.17 The effectiveness of operational work in supporting policy and institutional development would be ewhanced by a higher level of understanding and acceptance of the policy messages by governments in advance of Bank activity. The UMP Phase I proposes to facilitate that understaning and acceptance upfront of the project cycle through a series of discussions of urban management issues (labeed consultaions). These consultations will present a forum for the policy paper messages as well as language to be dissemina to govemments in an atmosphere of technical cooperton. -21 - 2.18 The single most important implication of the UPP on the Bank's procedures is the call for more 'up-stream' work to ground the policy and institutional content of future operations. Although the UPP does not address the question of what type of sector work is required, the implication of the associated process discussed here is that the sector work will need to be directly useful as inputs to the type of policy-based lending proposed. The process of prepaing such projects and designing what might be termed their non-traditional components almost certainy will involve much wider collaboa¢tion within the Bank and between the Bank and the borrower institutions than was previously the case. The FY91 Urban Program and the Pipeline 2.19 Having reviewed some of the possible implications of the UPP conclusions for the Bank's urban products and the process of producing them, it is now appropriate to look at the startng point for implementation of the UPP. This requires an evaluation of how the FY91 projects and the urban lending pipeline measure-up to the criteria implied in the UPP. This exercise serves not only to establish a baseline but also to formulate some guidelines and questions for Bank staff who will ulimately be responsible for the successfil implementaton of this new approach to urban lending. 2.20 Although the UPP was only approved by the Board in early 1991 the foundations for the paper were developed dunng previous research and poLicy analyses which relied extensively on selected examples from ongoing Bank research, sector work and lending operations. Many of the basic conceptual building blocks used in the UPP analysis have, therefore, been widely known (and selectively applied) witiin the Bank for some time. As a result, it may be possible to see the UPP themes emerging in the FY91 portfolio of projects and sector studies. The data for this assessment were obtined from Appraisal Reports in the case of projects, and available reports for sector work. Preliminary versions of some sector studies were available and consulted for this exercise. The obvious limitation of observations based on these data is that they only provide a picture of projects before they are implemented and can not measure how successful projects will be ultimately in achieving results. 2.21 As previously stated in Chapter I, the FY91 portfolio is comprised of sixteen projects (IJS$1,255.4 million): five "urban development or infastucture" and two "employment and public works" projects; four on various aspects of "municipal development" and three support "shelter" investments. There was one "urban enviromnmt" opemtion and one "earthquake reconstruction" project. Several of the projects combine investments from more than one category. Only the shelter projects are distinct, with the other operations funding a range of urban infstructure such as water supply, sanitation, roads and other public facilities. (Details of all FY91 projects are contained in Chapter I.) 2.22 How does the FY91 portfolio fare on policy reform and institutional development? The assessment of policy content of an operation is viewed here as a continuam of levels of engagement from a situation where there is no substantive discussion of, or component addressing, policy reform to a project which might contain a policy statement specifically -22 - prwared for the operation and components in the project that would lead to changes in policy over the period of implementation. Mfiddle ground projects might discuss how a client is reforming policies but the lihnkage between policy reform and the project would be very limited and focus primarily on a statement of support for the govemment's policies. This view of policy-based lending recognizes that there is a need for formal agreement with the govemment on policy objectives, some analyfical basis for selecting the Origtit policies and a formalized review or follow-up of the impact of policy change. 2.23 Applying this measure of policy content to the FY91 portfolio, six of the projects are distinctly toward the low policy content end of this continuum. They neither record any policy understandings with the borrower nor address policy issues in the implementation of the projects. Six other projects are near the middle ground since they include either a new policy statement or support previous or ongoing policy change, but they have little follow-up in the projects themselves. For example, the Djibouti Second Urban Development Project, includes both a policy statement and an action plan but the policy changes during the implementation are limited to revisions to the building code. Two other *middle" projects, the Ecuador Municipal Development Project and the Argentina Provincial Development Project, both support important changes in the financing of local governments. However, they do not fully take the next step of linking local government activities and responsibilities to the broader market including private providers of infrastructure or the financial system. 2.24 Four of the sixteen FY91 projects have significant policy content. Two housing projects (Korea and Vanuatu) include explicit agreements with government on policies and propose detailed monitoring of policy change during implementation, both by the borrower and the Bank. A weakness of their strategies may be that the fonnal obligations on policy development and implementation hinge, in both cases, on the borrower carrying out studies and then maling whatever changes may be necessary. The China Medium Size Cities Project, has the strongest agreement to implement specific changes to urban policies in education, health, anwport, water supply, and housing. These policies are limited to cities participating in the project. The Mauritius Environment Project has broader scope dealing with establishir g national policies for environmental issues. Overall, the FY91 portfolio of new operations 'takes only a limited foray into the area of policy development in the respective sectors. 2.25 Finding insttutional strengthening in projects is much easer because virtually every project claims to improve and strengthen, at a minimum, the project's implementing agency. However, strengthening usually simply involves training for the institution's staff. This may be appropriate in many cases, and the Uganda Urban I project is an example of a thorough training plan that is obviously needed in the country's drcumstances, but training, on its own, wiL not resolve all the problems developing country institutions are facing. In fact, the core issue for municipal level istitutions in many countries is a financing problem. Weak local resource mobilization and poorly designed and executed transfer systems have left many local governments unable to carry out even minimal functions. The FY91 program addresses this issue and includes projects with innovative institutional development components. There are eight projects which, when implemented, will increase the financial resources available to local - 23 - governments. Almost all projects also address the technical and managerial capabilities of these client institutions. For example, the China Medium Sized Cities Project proposes significant reforms to the opating procedures of implementing agencies. In contrast, some otier projects, which involve exclusive public supply monopolies and other institutional problems, contain no measures to address these issues and sometmes even fail to note that they exist. 2.26 In addition to the generl concerns of placing much great emphas on the policy content and institutional development of Bank activities, the UPP identifies a strategy involving four specific urban development themes which need attention. These are: urban productivity, urban poverty, and the urban environment and the awareness of urban issues. To enhance urban productivity the paper identifies four serious impediments: (1) infiastructure deficiencies, (2) inappmpriate urban regulatory policies, (3) the weakness of municipal institutions, and (4) the inadequacy of financial services for urban development Following is a dicuson of each of these in turn. 2.27 Infrastructure deficiencies significantly increase the cost of carying out busincss (economic activities) in many developing country cities by forcing firms (households) to provide their own infrat The FY91 projects direcdy increase the supply of infrastrucre in all 16 cases and the Bank's broader oions do the same in power, water, tsport and other sectors with urban located investments. However, in no FY91 proect is there an analysis of infrastructure deficiencies from the point of view of the costs imposed on users (generally firms) by deficient infrtrucue services. The most common approach to setting the goals for infructure investment is still to concentrate on general coverage or swpply targets based on demographic or spatial projections of settlements. Several projects also acknowledge the critical role of maintenance, including, for example, the Argentina Provincial Development Project. However, the norm for in operations is still a public sector, supply-driven opaion. 2.28 InapproprIate regulatory policies azso constrain productivity by increasing risks and costs to households and firms. The need to reform reguations is discussed in the Djibouti Urban Development, the PNG Special Interventions (a housing project), the Korea Housing, and the Niger and Burlkna Faso Public Works and Employment Projects. The latter two tackle only limited regulaions on public sector contrAng and the govemment system of paying contractors while the Djibouti and PNG projects include actions on the building code and zoning, reqpectively. The Korea Housing Project makes sector-wide regulatory reform the cental theme of the project and includes two study exercises to assess current reguations and to formulate reform proposals during the project period. 2.29 The financing of local govenments as well as the broader array of financial serces for urban development tirough revenue mobilizafion and transfers from central governments are important constuaints to improved productivity in the urban sector. The availability of housing finance is the most apparent major urban investment requiring fiancing but borowing for in by local governments is also a critical financial element in the tategy to reduce the constraints on urban productivity and growth. In FY91 three (D ibouti, PNG and Vanuatu) projects consider the housing finance system in their resective counties. -24- The complex task of reforming the financig of local governments is addressed in the China, East Java, Ecuador, and Columbia projects. The rage of approaches includes increased cost recovery, improved tation practices, long-term borrowing for capital investments and reforms to the fiscal relations between local authorities and the central government. 2.30 In summary, the overll picture for the FY91 projects in respect to the urban productivity theme of the UPP is mixed. Policy reform is mentioned infrequently and is rarely addressed in a comprehensive manner. Even when there is evidence of a consensus with the borrower on what to do, the projects hardly ever have firm agreements on the specific policy reforms or their timing. This may reflect a preference on the part of the Bank and the country to keep the conditionality in a form which is acceptable but it is also possible that it reflects a weak analytical basis for determining appropriate policy reforms. Generally speaking, despite numerous prior studies cited in most operations, the actual embodiment of the recommendations derived from sector work as conditions in projects is minimal. 2.31 Let us now turn to the remaining themes of the UPP - poverty, environment, and research-to see how they were addressed in the FY91 portfolio. First, a survey of the FY91 portfolio finds that poverty is not the main theme of most FY91 urban projects. Only the two public works and employment projects have poverty alleviation among their basic goals. As discussed in Chapter Im (which follows) even those projects do not offer a complete analysis of the costs or benefits of labor intensive technologies to provide local infrastructure. The main conclusions to be drawn from the FY91 program is that urban poverty is not being explicitly addressed. It would seem that most poverty-focused interventions at present are in other Bank sectors such as education and health. 2.32 Protecting the urban environment is the third of four major impediments identified in the UPP. At issue here are the special environmental problems that exist in urban areas resulting from the concentration of people and economic activities. These problems are different han the popular global environmental issues in that the effects of air and water pollution, for example, are known in a relatively short-term period and they most direcdy impact the people who live in cities. The UPP prescribes a program oI raising awareness by improving information, developing city-specific urban environmental stategies, identifying programs of curative actions and formulating national and urban policies in this area. The FY91 portfolio has only one urban environment project It should be noted that many of the key Bank interventions on environment are not part of the presently defined urban lending program. 2.33 The fourth concern discussed in the UPP is the need for a better understanding of urban problems which relate to a broad range of research and similar activities inside and outside the Bank. Most items in the Bank's research program are organized around the themes of the UPP and there is evidence that the sector work program also minroring the UPP topics. There is also considerable interest outside the Bank in advancing research and study on urban development issues. -25 - 2.34 The general recommendatton that more research on urban iues is needed has an implication at the project level. If Bank projects are to address policy and institutional deveopment they will need to be well grounded in research. Although sector work on urban issues has not been growing in recent years, the FY91 urban portfolio references many prior studies and analysis. Virtually all opeions cite a specific sector study and several rely on project preparation or project financed studies for their analytical basis. Despite these references, little is actually reported in projects on exactly what was recommended in these studies and even less is visible in the components or conditions of the projects. The linkage between studies and operations appears indirect in most of these operations. In fact there are numerous cases where the substantive basis for project undendings seems to flow from Bank dialogue with the borrower rather than formal Bank-sponsored sector work. 2.35 The FY91 sector work may be viewed as a link between the present level and type of projects and the future. There were three gray cover reports issued during FY91: the Madagascar Urban Sector Review, the China Urban Housing Reform report and the Humgary Housing Policy Reform report. There were also two reports that reached green cover stage and three more were issued as yellow cover reports during FY91. The Madagpscar Urban Sector Review is comprehensive but focused largely on traditional institutional questions. Many of the recommendations are very detailed and can therefore likely be appLied directly to future projects. The China Housing Report also analyzes the shelter sector in a comprehensive fashion and makes recommendations on property rights, rental housing, housing production and housing finance. MTis report was the largest urban Bank sector study in FY91 in terms of inputs required. The study recommends an overall reform strategy for the sector and lnks it to macroecomic policy and changes. Tne Hungary Housing Policy Reform report makes recommendations on many of the same subjects: rent reform and subsidies, property rights, housing finance and institutions in the sector. Since the transition problems covered in these two eports are common to a number of new Bank clients, it would be worthwhile to compare these exercises as a model of using sector work to assist this type of country. The Mexico Decentrlization and Management Study was only issued in green during FY91 but the grey was actually available in July, 1991. This report covers the broad and basic issues related to decentraliation: division of responsibility among levels of government, their financing, and the strengthening of municipal institutions. This is an example of a sector study that provides a framework for future operations to develop the measures that become part of projects. 2.36 The UMP will also facilitate identifying the direction for future research through a seies of workshops which will synthesize the findings of field experience. Phase II will establish networks with regional zesearch and tining institutions through the urban policy messages will be disseminated, technical cooperation activities based on those messages undertaken, and researchable gaps in understanding identified. Priortes for Fuure RPesech 2.37 The UPP developed a policy framework based on the premise that cities make significant contributions to economic growth and development. This framework is based on -26- three analytical elements: (1) the interrelationships between the utban economy and macreconomic performance through the fiscal, financial and rea sector linhkages; (2) a set of political, institutional, regulaty and finmcial constraints that inhibit exploiting the productive potential of urban households and enterprises to the fullest extent; and (3) the probable policy impacts on urban productivity, relative welfre of the poor, and envionmental condittons. Such a fiamework implies a need to conduct further investigation in key areas, and at the same time offe a rich menu for future reseach. Key areas of research have been identified as follows. (a) The Urban Economy and Macroeconomlc Aggregates. The relationship between the performance of the urban economy and the macro-economic efficiency (inflation, unemployment, national savings) must be scrutinized, with special focus on infrastructure investment, housing and local govemment finance. (b) bternal Effices of Cites and Urban Productivity. Research should be directed to: 1) the functioning of the urban markets, including land, housing, and labor and concentrating on the regulatory and institutional constraints; 2) impacts of public infrastructure investments (such as urban trmnsport, water supply, electric power, and telecommunications) on urban growth patterns, since iconsistencies between new investments and location dynamics will induce inefficiencies and welfare loss; and 3) the impacts of urban investments on the residential and the employment location nexus, since they determine the commuting paterns and overall spaial development pattern. (c) The Urban Poor and the Informal Sector. Improving our understanding of the mechanisms by which *mmunity-based productive activities are carried out in the informal sector remains a challenge. New insights are needed to support those innovative processes observed in the informal sector of uban areas. (d) Flnandng of Urban Investments. Maintenance and delivery of urban serices are seriously constained by the lack of government financial resources at both the national and local levels. New areas of research should include: 1) local governments' partiipation in broad financial markets, for example, in the form of borrowing; 2) deregulation and private-sector participation in the supply of infrstructure services; and 3) the complementarity between public and pnvate investments. (e) The Role of Goverment in the Urban Development Process. The efficient functioning of urban markets and the productivity of individual households and firms are affected by political structure, various institutional settmngs, and the locu of decision maldng within the structure. (t) Urban Environment. Very little is known on the probable impacts of various govemment interventions on the balance between the positive externalities of urbanization and the negative externalities affecting the environment. - 27 - The Pipeline 2.38 In order to implement the stregy for urban assistance outined in the UPP one would expect to see two ypes of changes in the Bank's main outputs. First, one would expect to see a growing number of urban operations responding to the condnued rapid urbanization of the developing world and the changing perception of the importance of urban management in the development proes. Second, one would also expect the nature of these operations to change, specifically in the direction of being more extensively supported by policy analysis and reform progams. The first expectation is accurate and easy to observe in the pipeline. The lending program for urban development continues to grow rapidly. The second question is much more difficult to evaluate. Since the policy content of future opeations is not directly measurable, the best proxy for that might be sector work on urban development issues. As discussed, the UPP specifically concludes that there is a LArge task at hand of undertaking the necessary analytical preparation for the future urban projects. 2.39 The following table, based on the approved lending program and the program of economic and sector work, suggests that a greater response to the urban challenge of developing counties and more analytical prepration activities are already well underway. In both cases these forecasts represent an approved strategy for the resective units in the Bank and are supported by resource allocations at the estimated level necessary. Table 2.1: Procts and Sectos Studies in Iscl Years 1991-9 FY88 FY89 FY90 FY91 FY92 FY93 FY94 Pnjects 18 13 16 16 18 24 33 Sector Studies (gry, geen, yeow) n.a 2 7 9 19 24 11 (gaY and gtee only) u.. 2 6 5 12 17 10 Source: Leng and Secto Work Pogams 2.40 The number of urban projects shows strong growti from FY91-FY94, more than doubling over the three year period, from 16 operations to 33 per year. The urban sector work program shows an even faster increase in planned (and budgeted) studies. Only nine urban sector studies were issued in green, yellow, or grey covers, during FY91. Eighteen are planned for FY92 and 24 for FY93. Interestingly the increase in sector work precedes the increase in lending which is consistent with an intention to provide a basis for stronger policy and institutional development projects through relevant and timely sector work. In fact, there is a strong linkage between the tpe of sector work proposed and the lending operations in the pipeline. For example, the FY92 through FY94 pipeline contains 7 sector studies and 7 projects explicitly focused on the new field of urban environment concerns. - 28 - 2.41 Even the growing urbn program, provides only a partial picture of the Bank's impact on urban development. In addition to considerable increase in the prets falling within the narrow 'urban' definidon, the Bank it will also be directly supporting urban development through water-supply and sanitadon projects and urban tansport lending. The five-year pipeline of 109 -urban- projects will be augmented by 82 urban tnsport, water supply and sanitation projects. In addition, the centrl themes of the UPP will be adressed through growing activities in ote sectors including population, health, education, and environment related investnents. mplications for the Bank 2.42 The approval of the UPP was an acknowledgment of the Bank's need to reposition its work in the field of urban development. In taidng stock of the changing drcumstances in the developing world, and its own experience, new possibilities for mo effective assistance were apparent. Instead of approaching urban assistance primarily through the housing and snitaton subsectors, the emerging themes of productivity, poverty, and the environment are viewed within the Bank as important organizing principles for urban assistance. This changed perspective was brought about by a number of factors. Firs, there is incasing evidence of the strong relationship between well-managed urban development and success in achieving macroeconomic goals. Second, some of the same research that highlighted the macroeconomic stakes of good urban policy, also suggested reforms to improve the performance of specific urban subsectors. The research and policy work on housing market distortions, local government finance, and infrastuct deficiencis are examples. Third, and perhaps most importantly, there are changes in the world outside the Bank significantly impac&ing the urban development agenda. The rbanization of the developing world, in general, continues at a rapid pace with historicaPy unprecedented numbers of new urban dwellers. In addition, the breakup of the former centrally- planned economies has created a large number of independent countries with significant urban populatons and serious urban problems. This change in economic ideology was not confined to the former socialist economies. Instead, a fundamental reexamination of the role of the state in the economy and in urban development is talkng place throughout he world. These events have forced the Bank to redefine its view of the challenge of urban development. 2.43 There were two objectives in bringing these perspectives on urban development together under the umbrella of the UPP. First, the process of urban reform in the developing countries and the accumulated results of research and implementation experience called for a new statement of the ftamework under which effective urban development policies should be formulated and executed. Second, there was a need for the Bank to have an explicit strategy on how to strengthen the impact of its urban lending. The themes of the UPP, which tell the current story of urban development, are being widely disseminated. Since the approval of the UPP there has been extnsive presentation, discussion and exchange of viws witbin the Bank and outside with country policy-maks and with other donor agencies. This process may apprpriately be seen as the starng point for the institutliation of the UPP. This means that there is growing adoption of the terminology and of the basic ideas of the UPP both within the Bank and in the prnouncements of governments and other donor agencies. The su ul - 29 - end-point of such a process will be when the views expmsed in the UPP are the institutional norm of the main actors in urban development. 2.44 A urban development strategy for the Bank implies that there will be agreed goals and means to achieve them. The goals are those outlined in the UPP. The strategy necessitates intemal changes for the Bank and for its relations with developing countries. As descnbed earlier, it is convenient to think of the Bank as having products and processes which determine how those products are produced. The objecdve of strengthening urban lending really addresses innovations to both products and the processes so that the impact on decision makers can be increased. Changes to the products are discussed followed by changes in the processes. 2.45 The new directions for Bankproducts encompass the entire continuum of activities including research, policy papers, country strategy papers, sector work, projects, and project financed studies. In the first sance there are emerging policy themes in urban development which are beginning to be adopted in specific cases. These new themes include the linkage between urban development and macroeconomic performance, the relationfhip of urban policies to fiscal matters, the concept of urban productivity, and the notion of citywide management strategies. There are many specific ways in which the concepts and framework of the UPP are shaping other urban activities v ithin the Bank. Three subsector policy papers are under preparation on key UPP themes; the Housing Policy Paper, the Municipal Development Policy Paper, and the Urban Environment Policy Paper. Each of these is designed to apply the framework and the prnciples of the UPP to a specifc subsector where Bank opertons are atve or expanding. The current research program is similarly being shaped by the UPP ideas. A major project on infrastucure deficiencies will help establish the basis for reforms in this area for future opaions. The housing indicators project and the proposed land market research address both policy and regulatory issues in the shelter sector. The poverty research proposal also seks to develop an approach which can be used to guide the Bank in addressing this dimension of urban development. The urban environment program similarly is worldng toward a set of procedures and practices on the emerging urban environmental agenda. 2.46 The rapid growth of urban lending and sector work implies a mushrooming demand for policy and institutional development inputs. In urban projects there is a need to efficiently apply research and policy suggestions to the specific circumstances of a prospective urban operation. One of the types of new products proposed are diagnostic tools for the purpose of assessing the state of policy and performance of a specific urban markets. The land market assesm t and the housing sector regulatory audit are two early examples of such tools. Further development along these lines will be an importnt conduit for transferring research and policy analysis conclusions into spedfic sector studies and projects. 2.47 At the regional level there are also important new initiatives underway. Although the volume of sector work on urban topics has been falling over the past decade there is now a reversal of that trend in the pipeline. Not only are the numbers of reports planned, and the resources devoted to sector work going to grow rapidly, but the content is planned to change also. There are proposed studies that focus on understanding the cost of infastructure - 30 - deficiencies, on assessing the incentives created by regulatons, on hpng central- local fiscal relationships and much more. The content of this sector work is also reflective of the themes of the UPP. As the focus of attention in projects moves away from individual investments and specific institutions, larger public policy issues become important. There is a clear trend toward increased attention to financial and economic policy in the proposed sector work. Studies which cut across traditional Bank sector lines are also going to become much more important in the future. 2.48 Although the changes in process may be somewhat more difficult to assess, their impact on the Bank's effectiveness in strengthening urban lending may be even more important than the changes to products. Put in the broadest context, the UPP argues that the Bank should become a full-fledged player in the urban reform process rather than simply the fimancier of specfic investments. Internal processes affect the Bank's ability to influence urban development in the client countries in two ways. First, the array of new products may require changes to the production process inside the Bank. Second, the process itself may be important to the achievement of policy goals in the developing countries. 2.49 The main change to the product mix of the Bank is the considerable increase in sector wc.k. Even though the present pipeline includes a much increased work program for sector studies, it is unlikely that a doubling in one year and an almost tripling in two years of output can occur without some changes in the process of producing sector reports. On the project side the main change is a coalescence around the new substantive themes. If the sector work also underpins a larger number of similar operations than in the past, then there is an opportumnity for increased learning among the sector work teams. For this reason the strategy of PRS is to focus, more than in the past, on operations support for sector work. In particular, to maximize the effect of operations support it is the intention to shift increasingly to the design of sector work rather than its actual execution. This will allow many more opportunties for PRS contact with sector work teams and should provide an opportunity for more cross study consistency and shaing of approaches. There may be a siilar need in the operations complex to review the role that sector work plays in preparing and educating the Bank's clients on appropriate policy reforms. 2.50 How will the sector work program be implemented? One option would be to make this much elarged program of sectr work more intpretive as opposed to undertaking original research. This means that sector studies would tend to involve translation of other basic research and policy work for the specific circumstances of the borrowing country. In addition to allowing the sector work to concentrate more on immediately implementable recommendations, this type of work should be more timely and less costdy than the present, usually unique, sector studies. If sector work is to play a key role in supporting urban operations it will also become a pnmary vehicle for illustating the soundness and merits of policy reforms and influencing clients to make the needed changes. This probably means that more collaborative research directly involving the client's analysts and perhaps other important donors, as well as NGOs, may become the model. It is further appropriate that there be some shift of emphasis from the production of sector work to the dissemination phase. In most - 31 - countries, it is more lily tO the dialgue following from the sector study, or conducted as part of the preparation of a loan, stimulates or claifies tie need for a commitment to policy change than the specifics of any single document. More emphasis on the procedures and process of disseminating the results of research, policy work, and sector studies to government officials would be apprpiate. 2.51 Finally, the process of intrn insttutional response to the new urban agenda must consider issues of staff skills and resources as well as incentives. A move to more policy- based lending will increase the demand for certain types of skldls. Individuals who are capable of doing financial and economic policy analysis are likely to be in demand. There is also a case for examining the incentives for staff in terms of the need to hold to time tables and produce witiin standard budget allocations. It will be important to make sure that the signals from the organization to staff are consistent. Researchers and policy analysts may need help understanding how to assist in the implementation of their work. It wi}l also be necessary to ensure that project managers are given sufficient information to know how to strike the appropriate balance between preparing and making loans and the complex process of promoting policy and institutional development. 2.52 In summary, the UPP represents both a challenge and an opporunity for the Bank Some changes will be needed in both its products and its inter processes. The products will need to be directed toward policy and institutional development to enhance urban productivity, reduce urban poverty and improve the management of the urban environment. This will require some internal priority shifts towards a type of sector work, design of diagnostic tools to facilitate project lending operations and more stuctued opeations support. This, in tun, will demand better integration across the entire spectrum of Bank activities to ensure continued efficiency of opeations. In short, if the Bank is to be effective in the urban sector it must make the necessry intemal adjustments. -32 - mIL POVERTY IN THE FY91 PROGRAM 3.1 The Central Operations Department and the TD Directors selected two cross- cutting issues for systematic analysis in the FY91 Annual Report: (i) the poverty content of the year's lending operations and sector work; and (ii) the extent to which technology issues were systematically addressed in lending and sector worlk They also asked for recommendadons on how the attention given to cross-cutting issues might be strengthened in the future. in the following review, only poverty issues have been covered because the urban portfolio does not directly deal with technology issues. This chapter ends with some comments on the constraints to implementing the stategy for strengthening World Bank urban operations. Definitional Issues 3.2 To assess the extent to which urban projects alleviate poverty, some definitional issues must be addressed at the outset. Primarily, a distinction can be made between targeted and non-targeted poverty projects. Targeted poverty projects are those projects that contain well-defined mechanisms to identify and directly reach particular groups or regions that are poorer than the countrywide average. To develop targeted programs, urban projects use a vanety of mechanisms such as geographic targetng, income targetng, and self targeting (prqcect designs that by their nature and content discourage the participation of the non-poor). Non- targeted poverty projects refer to those that may have a large poverty impact-possibly due to the high level of absolute poverty in the area-but are not specifically tailored to meet the needs of the poor. 3.3 More recently, in attempting to address the social costs of stuctural adjustment, the Bank has identified three categories of poor: the newly poor, the borderline poor, and the chronic poor. The newly poor are direct victims of structurl adjustment; they might be retrenched civil servants or employees laid off by public and private enterprises as a direct consequence of strutural adjustment measures. The borderline poor refer to individuals and fmlies whose incomes, though not quite at poverty level, are so low that price increases caused by stru ral adjustment push them below the poverty line. Finally, the chronic poor include those who were extremely poor even before an adjustment program was undertakn, and were perhaps made even worse off by SALs. Traditional projects seldom have reached them because they have little political clout and may often be too weak and too poor to contribute the required assets and energy. For each of these categories, gender data is a necsary prerequisite for project formulation. - 33 - Table 1: Breakdown of Urban Laing in FY 91 in terms of Poverty-alleviation Components COMPONENT3 PROJECT NAME Argentina - Provincia Development Project Burkina FPo - Public Works and Employment Project Employment Niger - Public Works and Employment Project Papua New Guinea - Specl Intervetons Project Sao Tome and Princip - Multi-Sector Project 1 Argentina - Provincia Development Project Burkina Faso - Public Works and Employment Project Colombia - Municipal Development Project Djibout - Urban Development II Project Ecuador - Municipal Development and Urban Inlfastructure Project Infrastructure Indonesia - East Java and Bali Urban Development Project and Services Indonesia - Third labota Urban Development Project Niger - Public Works and Employment Project Papua New Guinea - Specia Intervention Project Sao Tome and Prieipe - Multi-Sector Project U Uganda - Urban I ProJec Vanua - Housing Project Korea - Housing Project Housing Papua New Guinea - Specil hIterventions Project Uganda - Urban I Project Vanuat - Housing Projec Burkma Faso - Public Works and Employment Project Commuty Indonesia - Third Jabotabek Urban Developmt Project Participton Niger - Public Work and Employmeat Project Sao Tome and Plncipe - Mui-Seor Project Project iterventions 3.4 In evauating the extent to which urban projects in FY91 have attempted to addres the issue of urban poverty, it is possible to organize them into four tnior intervention types: employment, infrasructure and servi, and housing and community participatdon (Se Table 1). It is important to note that the fist three of these intrvention types are seoca while the last is instutional in nature. 3.5 The background information used are appraisal iports of the various project. As these reports do not provide adequate information on the progress of project advites (.e. with regrd to implementation and impact on intended target beneficiaries) it is only possible to obtain a descriptive analysis of the various interventions in terms of the projects' intended objecttves. An assessment of the extent to which these projects have been effcive i alleating urban poverty will require more detailed infomation on project activities. Employment 3.6 Interventions in this category have primarily included the proviion of tempoy employment oppotunities to unskilled and low-skilled workers on civil works projects. For xample, in Argentina it is estimated that the public works financed under the Provincial Development Project will creae an esl mated 110,000 persm years of low-skilled constrction employment. Under the Special Interventions Project in Papua New Guinea, one of the proect objectives includes the enhancement of employment opporunities among low-income and unemployed urban workers through labor-intensive public works progams. In Burklna Faso and Niger, labor-intensive pubLic facility and infrstuc rehabilitation projects in urban areas are included to provide tempoRray employment oppotnites to labos and local contrtos. Infrastructure and Services 3.7 These interventions have included measures aimed at impwving inf and servie delivery. They have included the construction and/or rehilitation of social and conomic infrastructure such as roads, markets, drainage, and water systems, etc., as well as the provision of services such as garbage collection and solid waste manaement in targeted areas. For exmple, the Third Jabotabek Urban Development Proect in Indonesa financed the provision of basic nfrastruc and community services in low-income neighborhoods throughout Metoplitan Jahr In Colombia, urban if r r rehilia subprojects are incorporad into the Muricil Development ProjecL Ihe Second Urban Development Project in Djibouti finances the rehailition of roads and drainage works and the improvement of water supply and electricity networks in targeted areas. Ihe Fit Urban Project in Uganda wil finance projets aime at rehabilitating urban infra , including markets, roads, and foots in Kampala This proect will also fimance proects aimed at rehbilitafing the solid waste management system. -35 - Housin 3.8 intervenions in this category have included the provision of low-cot housing and mortgage finanmg to low and/or lower mcome households. For example, under the Specidal Interventions Project in Papua New Guinea, mortgage financing is to be provide for low- and middle-income homeowners. Under the Fis Urban Project in Uganda, a sites and services component is included that is epected to provide 1,000 srviced resdential plot to be allocated to lower-income households. In Korea, under the HoPwiect, aimately 15,000 lower- income housing units are to be provided through the Nationl Housing Fund. Comuiy Partelpation 3.9 Some of the projects have incorporated specific measures to promote and/or enhance community partipaton in project activities. These measures have included information disseminaion efforts such as seminars, meetings and media campaigns aimed at improving community reations. In Burkdna Faso, the Public Works and Employment Proect includes a Grassroots Participation Program that aims to increase community-level n in the maintenance of urban infrastructure to be funded under the projecL The progm includes the dissemination of information to the public in an effort aimed at imprving communit reations and to increase community-level participation in project identification and implementation. A similar progam is incorporated in the Niger Public Works and Employment Project. Under the Muli-Sector 11 Project in Sao Tome and Principe, an information campaign and other promotional activities are to be financed through the Social Infrastructure Fund, aimed at improving community relations and enbancing beneficiary partcpaon in the identfication of priorities and the establishment of an effecdve maintenance system for project activties to be undertaken. In Indonsia, the Third Jabotabek Urban Development Project includes efforts to use community partipation to assist in the introduction of an effectve and sainable approach to the provision of basic services. Assessment 3.10 The above descripton identifies project components with the capacity for poverty alleviation in both targeted and non-targeted ways. However, a lack of data meant that further conclusions could not be drawn as to their relative effectiveness in reaching the poor. In addition, the data did not give a clear idea as to which 'category of poor' was addressed. Nevertheless, thi review raises four substantive issues for further coiderton. 3.11 The fact that the prqects cover a very narrow range of issues raises the queston as to the definition of urban,, and whether, if poverty alleviation is to be agreater concern, it rquires broadening. Municipal projects may have a trickle down effect, but ths cannot be assumed; the trend in housing projects, as identified in the housing policy paper, is a shift toward middle-income counties and intrventions in housing finance, with less poverty alevion affect likely [than what?]. In the case of intructre projects with labor ntensive - 36 - components, the quesdons that need to be raised concern the benefitslcosts of labor intensive technologies. 3.12 This issue needs to be addressed in terms of current debates about the definition of 'urban." Traditionally, it has been defined in sctoral terms to include 'physical infratructure' concerns of housing, sanitation, water, and land, combined with insdtutional and management concerns of "local government." It has not included 'social inrasucture" such as health or education or institutional and management issues rdafing to communi paricipation or non-goveanmental organizations. However, as identified in Table 1, community participation and grassoots initiatives are increasingly being incorpoated into uran projects. 3.13 Both the 1990 WDR and the recent Urban Policy Paper have intmduced a cross- sectoral identificaton of poverty-focused interventions, based on a two-part strate that is both economic and social in nature. The Urban Policy Paper argues that to alleviate uban poverty requires managing the economic aspects of poverty-through interventions designed to incse the productivity of the poor, as well as 'managing the sodal aspects of poverty'-through basic services in education, health, nutrition, and family planning, as well as through increasing access toInf and housing. For projects to be more poverty focused, not only is the clarification of the categories of social and economic infiraucht required, but also the redefinition of the parameters of "urban' opertional support as it relates to economic and social infirstucture. 3.14 At the same time, it may be important operationally to recognize that there are a number of new project-level poverty alleviation initiatives that currently do not include urban components. The new focus on compensatory measures, designed and introduced under conditions of adjustment, provides a strategic entry point for a cross-sectoral approach to urban poverty, whether supply or demand dnven. While the Urban Polcy Paper identfied targetng 'safety net' assistance to those most vulnerable to short-term shodks as the third of its poverty- fiocused interventions, the only urban interventions to date have been the labor-intensive public works schemes that aim to provide temporary compensaton for the new and chromnic poor. These schemes, in counties such as Senegal, Niger, and Burldna Faso, have been developed in the infrasture divisions in the respectve country opers departments. 3.15 Other than this, 'safety net' assistance in opeations within country departnents remains primarily the concern of Population and Human Resources, with solutios that include the construction or rehabilitation of physical social infrastucture as well as the provision of social serices. From the viewpoint of urban communitie, human capital development is not the only issue. Economic infrstuctu relating to employment and enhaced productivity may well be of equal concern. It would seem essential for urban projects to move to a more proactive posto on this issue. 3.16 Fmally, it may also be important to explore the opportity for greater interagency colaboration in urban poverty-alleviation projects If the shift is toward more sustainable community-based delivery of social and economic infucU, UNICEF, for - 37 - instance, has a very different track record and erence from that of the Bank .ts iniudil and operaional structm has ment that UNICEF has had a comparative advantage in tems of the design and implementaon of local level participatory delivery models. The comparafive advantage of the World Bank may well be in technical expertise or policy level leverage with governments. Given the priotizaon of poverty concerns, and the necessity to develop realistic prqects, collab between two such agencies may have considerable potental. Constraints 3.17 We have seen that changes in the extenl world and the coo lessos of Bank experience and analysis have led to a new framework for urban development which was epessed in the UPP early in 1991. The diagnosis of the problems is widely shared wihiin the Bank and outside. In addition, the recommendations for corrective acdon are sting to be adopted by gnments. It is the strategy for implementig the recommende activities or institutionang the ideas which has concemed us here. 3.18 The UPP related expansion of project and sector work appears to have dgnifint mplications for both the. quantity of staff and match between the eisdng and needed skills. Although it may not imply more staff for the Bank overall the growth in the urban program will need to be accompanied by some reallocation of staff. This is partcularly true in respect to the fst growing program of sector work where the most popular tasks are also those with some of the higher costs. It is also fairly clear that the fiutre work progrm is not wholly consistet with the present sdll profile of sector staff as discussed in Chapter IL 3.19 Fortunately re are a number of activintes underway to address se issues. The human resoures panel being established among the infrastu division chiefs will address both recruit and training for the sector. PRS is also planning to double its oations support focusing more on targeted smaller inputs to sector work and its design. The training for infrastructure staff will also be incased in PRS to assist staff in the transition. - 38 - LIST OF ANNEXES Projects and Sector Work Annex 1 - Approved Urban Projects in FY91 Annex 2 - Economic and Demographic indicators of Bonowing Countries In FY9l Annex 3 - Bank Lending by Sector in FY91 Annex 4 - Urban Sector Work in FY9l Supervson Annex 5 - Urban Projec under Implementation d g FY91 (AFRICA) Annex 6 - Urban Projects under Implementation during FY91 (ASIA) Annex 7 - Urban Projects under Implementation during FY91 (EMENA) Annex 8 - Urban Projects under Implementation during FY91 (LAC) Annex 9 - Overall Rating of Urban Projects Under Supervison During FY91 Annex 10 - Avegee Performance Rating of Urban and All Bank Project during Y9l Annex 11- Proportion of Urban Projects Rated Satisctory with a Rating of One during FY91 Annex 12- Urban Projects Compared to Other Projects Under Spervion dug FY91 COmpWon Annex 13 - Project Completion Reports Filed during FY91 Trends in Urban Lending: FY72-FY91 Annex 14 - Total Costs and Total Lending for Urban Projects (FY72-FY91) Annex 15 - Country Summary of Total Project Cost (FY72-FY91) Annex 16 - Country Summary of Urban Lending (FY72-FY91) Annex 17 - Total Number of Urban Projects (FY72-FY91) Annex 18 - Number of Urban Projects by Region (F72-FY91) The Fture in Urban Lending Annex 19 - Urban Pipeline Projects (PY92) Annex 20 - Urban Pipdine Projects (FY93) Annex 21 - Urban Pipeline Projects (FY94) Annex 22 - Urban Pipeline Projects (FY95) Annex 23 - Urban Pipeline Projects (FY96) Annex 24 - Urban Sector Work Program Pipeline (FY92) Annex 25 - Urban Sector Work Program Pipeline (FY93) Annex 26 - Urban Sector Work Program Pipeine (FY94) Annex 27 - Urban Sector Work Program Pipeline (FY95) -39 - ANNEX APPROVED URBAN PROCTS IN FY91 (US$ Milions) TarAL PROJECI LN/CR % COUNTRY PROJECT NAME IBRD IDA LN/CR COST OF COST AMRCA Burn Pawo Public Woks & Employment 20.0 20.0 30.0 66.7% Djiut Urbn D e9opmet II 11.2 11.2 45.5 24.6% Mauitius Monitoring & Dev't 12.4 12.4 20.5 60.S% Nigor Publc Woks & Employment 20.0 20.0 33.3 60.1% Sao Tomrin cddipe Multi-Sector Poject I 6.0 6.0 7.6 78.9% Ugpanda Urban 1 28.7 28.7 38.5 74.5% TOTAL 12.4 85.9 98.3 175.4 56.0% ASIA China Medium-Sized Cities Dev't 79.4 89.0 168.4 277.2 60.8% Indonesia East Java and Bali Urban Dev't 180.3 180.3 373.4 48.3% Indonesia Jabobtbek Udban Dev't M 61.0 61.0 97.0 62.9% Korea Housing Proect 100.0 100.0 S00.0 20.0% Papua New CGinea Specal Interventons 30.0 30.0 40.3 74.4% Vanuau. Housing Proiect 3.4 3.4 5.0 68.3% TOTAL 450.7 92.4 543.1 1,292.9 42.0% EMENA Ian Earthquake Recovery 250.0 250.0 4,172.0 6.0% TOTAL 250.0 250.0 4,172.0 6.0% LAC ArgeWnin PrvincKial Developent 200.0 200.0 575.0 34.8% Colombia Municipal Development 60.0 60.0 188.2 31.9% Ecuador Municipal Dev'tlUrban Infiast 104.0 104.0 300.0 34.7% TOrAL 364.0 364.0 1,063.2 34.2% Source: Aumual Report 1991, SAR8 ANNEX 2 BEONOMIC AND DEMIORA C INDICIAOS OP BORRDWING COUNTRIE IN FY91 DiRD LANt PROJECT TOTAL URBAN POPUIAITION URBAN POIN GNP PEIR LNR PER CONIRY IDA CREDIT C061S POPUIATION POPULATION GROWTI RATE OROWTI RATE CAPITA UBA DWELUER (US MI) (US MiD (199 mm (19049 (909) (t16 am AFRICA IN- s PA" DA 20.0 30.0 8.8 9% 2.6% SA4% S20 us DPlUi(a DA 11.2 4S.5 0.4 74% MSS .. _ $ tRID 12.4 20.5 1.1 41% 1.0% 04A% 81.90 527 Nier MA 20.0 33.3 7.4 19% 3.4% 7.1% 20 $14 SAOTom&P A Pe(b) DA 6.0 7.6 0.1 32% 3.0% .. SW $156 Upbad MA 28.7 3S.S 16.6 10% 3.2% 5.1% $250 S17 TOTAL 96.3 17S.4 34.6 4.7 allahS21 ASIA CMmk IDAJIBRD 168.4 277.2 1,113.9 53% 1.4% .. $350 $0 I_Somma MRD 241.3 470.4 1762 30X 2.1% S.4# $5OO SS lcoom * 3 100.0 500.0 42.4 71% 1.2% 3.6% $4,400 $3 Pm Now G_m 3RD 30.0 40.3 3.8 16% 2.5% 4.5% SW90 $49 V _mat (c) IDA 3.4 5.0 0.1 17% 2.4% 6.0% SW40 $143 TOTAL S43.1 1,292.9 1,33S.4 674.6 Siffle $1 BSENA ham mmiD 250.0 4,172.0 S3.3 S6% 3.5% 4.9% $3,200 $8 TOTAL 250.0 4.72.0 53.3 29.8 Mi $S LAC ArgunIam mmD 200.0 55.0 31.9 S6% 1.4% 1.8% S2.160 $7 Co3ambk IBRD 60.0 tU.2 32.3 69% 2.0% 3.0% S1.200 Ss EaIor mRD 104.0 300.0 10.3 5s% 2.3% 4.SX $I'020 $18 TOTAL _36.0 1,063.2 74.5 5.4 ion $7 ' R'N0 lAL 155 7 " 764.5 ie' NOI3: (a) Djibha dam fom SAR. Rep_ No.9037.DJ,. Demba 1990. (b) Sao Tome h Pdncipe da fio SAN, Report No.9581.SP. lme 1991. WorM Book Ado & WDR t99t. (c) V_mam dat frm Wodd Book Ado 1990. D Woad Bank, .. Da not kvailde Sowvo: WDR 199t, SARa, WoMd BDk Ado 1990. ANNEX 3 FY91 BANK LENDING (US M)_ % OF TOTAL PURPOSE IBFU DDA TOTAL BANK LENDING Agric. & Rual Dev't 1,913.1 1,794.2 3,707.3 16.3% Development Finance Co. 1,695.0 156.8 1,851.8 8.2% Education 1,515.5 736.2 2,251.7 9.9% Energy: Oil, Gas & Coal 1,570.0 160.2 1,730.2 7.6% Energy: Power 1,189.0 155.0 1,344.0 5.9% Industry 1,767.1 215.9 1,983.0 8.7% Nonproject 1,940.0 881.9 2,821.9 12.4% Pop., Health & Nutrition 647.0 920.6 1,567.6 6.9% Public Sector Management 636.0 5.7 641.7 2.8% SmaU Scale Industry 166.0 45.0 211.0 0.9% Technical Assstance 284.5 82.2 366.7 1.6% Telecommuniucations 270 69.8 339.8 1.5% TrqnM2nLtLion 91S.9 472.1 1,388.0 6.1% Urbanizadon 1,077.1 178.3 1,255.4 5.5% Source: Annual Report 1991. -42- ANNEX 4 PY91 URBAN SBCTOR WORK (W) (S (SW) Thn COUNTY PROJECT NAME PRODUCr 1D SrATUS DATE PY90 FY91 TOTAL AFIUCA Chad Towards an Urban Siaty 3CHDSR017 Wit. 06/309l 0 0.4 0.4 Kenya Local Govt Fianing 3KENSRO43 Green 0911890 34.1 S 42.2 Madagcar Uan Sedor Rew 3MAGSR053 Gay 060191 31.9 16.7 48.6 ASIA Bngladsh Entin. Statg 4DANSR096 Yellw 0)/1591 6.2 22.4 28.6 Chin Urban Housing Refom 4CHASROSO Gy 06/20/91 123.4 33.5 156.9 EMMA Hwwna Housng Pblky RefPm SRUNSR041 Guy OS/31J91 0 35.1 35.1 Jordan Tourism Setor Not. SJORSR036 Greon 08/0691 0 13.6 13.6 Morooco L0al Govt HIp &Mgt MYCSRO32 Gre031190 23.9 13.3 37.2 Pakian utan Sctor Srat SPAK 7 Whit. 05/01191 12.6 0 12.6 Pakdan Lunicipal Finnce SPAKSROS8 Yelow 00/191 16 9.7 25.7 Pblond Housing Task Porme SPOLSR040 Whi 10/15190 78.2 27.2 10S.4 Tunisi Land Regstaion STUNSR0S2 White 10112/90 0 10.7 10.7 LAC azil Infra Stry Paper 6BRASR16 Yelbw 03l891l 0 15.8 15.8 Ecuador MunipalwF 6ECUSR029 Whit. .. Pau General lust_ 6PtR047 Wi .. .. . Data nvtblac. Soure: JnfiaauctnM DIisn, MIS. -43 - ANNEXS URBAN PROJECtS UNDER MPLEMETATION DURING FY91 LOAN REVSED LN/CR FY91 SPN CREDrT CLOSING AMOUNT TOIAL COUNTRY PROJEC NAME FY NUMBER DATE (USS miL.) (SW AFRICA 1 Bostwana Selebi Phikwe 86 126950 12/31/93 7.6 2 Burkina Faso SecondUrbanProject 90 C20670 06/30/96 22.2 21.8 3 BurlnaPaso Public Works & Employment 91 C22820 06/30/95 20.0 4 Burundi Urban I 89 C196&i 12/31/95 21.0 9.4 5 Cameroon Urban II 89 L29990 06/30/94 146.0 23.8 6 Cote d1¶voire Municipal Development 90 L31280 12/31/94 66.0 10.5 7 Cote dIvoire Thid Urban 87 L27890 12/31/92 126.0 28.9 8 Djibouti Urban I 85 C15180 06/30/92 5.0 10.0 9 Djibouti Urban II 91 C22030 06/30/98 11.2 2.8 10 Ethiopia AddisAbabaUrbanDevt11 90 C21610 06/30/97 35.0 12.5 11 Ethiopia Market Towns Devlopment 90 C21030 06/30/97 40.2 24.6 12 Ethiopia Urban Development Project 83 C13660 06/30/91 20.0 4.4 13 Gambia Urban Project 84 C14430 12/31191 11.5 10.9 14 Ghana Priority Works 88 C18740 06/30/92 10.6 16.0 15 Ghana Urban Development 85 C15640 06/30/92 22.0 10.6 16 Ghana Urban II 9C C21570 6/30/96 70.0 387 17 Guinea Urban I-Conakry & Supplem 84 C14660 06/30/91 10.7 7.3 18 Guinea Urban I 90 C21120 12131f95 57.0 16.3 19 Kenya SecondaryTowns 83 L23190 131P90 22.0 10.4 20 Lesotho Urban I 88 C18980 12/31/94 20.4 8.1 21 Madagascar Urban I 84 C14970 12/31/91 12.8 9.9 22 Malawi Urban I 85 C15280 06/30/92 15.0 13.9 23 Mali Urban II 86 C16770 03/31/93 28.0 17.8 24 Mauritius Environ. Monitoring & Dev. 91 L32770 06/30/96 12.4 6.0 25 Moambique Urban Rehab. 89 C19490 12/31/95 60.0 184 26 Niger Public Works & Employment 91 022090 12/31/94 20.0 4.5 27 Nigeria IMO Urban Development 86 L2070 12/31/91 53.0 32.1 28 Nigeria Lagos Solid Waste Mgmt 86 L26200 06/30/92 72.0 14.3 29 Nigeria Oyo State Urban Project 90 L32380 06/30/96 50.0 25.4 30 Nigeria Urban Infrastucture 88 L29250 12/3194 69.5 27.7 31 Rwanda Urban Institute 89 C20410 12/31/96 32.0 7.9 32 S-T & Pncipe MultiSector I 89 C20380 12/31/96 5.0 17.7 33 Senegal MunicipalHousing 88 C18840 03/3195 46.0 25.6 34 Senegal PubLic Works & Employment 90 C20750 10/31/92 20.0 8.8 35 Sudan Flood Reconstruction 89 C20110 10/3192 75.0 19.2 36 Ugada Urban I 91 C22060 06/30/98 2&7 6.7 37 Zimbabwe Urban II 89 L0790 1231/96 80.0 7.0 38 Zimbabwe Urban I 84 L24450 09/392 43.0 10.7 Data not available. Source. MlS Implementation Summary (Form 590) as of July 26,199L -44 - ANNEX6 URBAN PROJECTS UNDER IMPLEMENTATION DURING FY91 LOAN REVISED LN/CR FY91 SPN CREDIT CLOSING AMOUNT TOTAL COUNTRY PROJECrNAME FY N1MBER DATE _5USSnmdL (SW) ASIA 39 Bagladesh Urban I 88 C19300 0/9 47.6 22.6 40 Cbina Medium-Sized Cities Dev't 91 L32860 0610i97 168&4 22.3 41 China North China Earthquabe Reco 90 C20910 1231/92 30.0 6.1 42 China OansuProvinciallDv' 87 L28120 06309 2Q0 .0 43 China Shanghai Sewer 87 127940 06130/93 145.0 73 44 F9ji Housing Project 90 L31880 12f31/96 16.2 12.5 45 India Bombay Urban 85 C15440 09130/91 1380 20.0 46 nldia M.P. Urban 83 L2390 30/91 24.1 17.7 47 India Hsg Dev't Fmance Co. 88 12990 09130/ 2500 6.7 48 India Oujrat Urban 86 C16430 12431/92 62.0 27.1 49 India Tamil Nadu Urban 88 C19230 09130t95 300.2 49.7 50 India U.P. Urban Development 87 127970 03/31196 150.0 41.9 51 ndia Calcutta Urban m 83 C13690 03131/92 147.0 15.6 52 Indonesia UrbanV 84 124080 0613091 393 16.0 53 Indonesia Housing Sector 86 L27250 1231/91 275.0 11.7 54 Indonesia Regional Cities 87 L28170 10/0U194 5L0 10.6 55 Indonesia Jabotabek Urban 88 129320 03131/95 150. 43.7 56 Indonesia Urban Sector 87 L28160 03131191 270.0 93 57 Indoeaia . Java/Bali Urban Dev't 91 [33040 1213196 1803 13.6 58 Indonesia Tbird Jabotabek Urba 91 32460 1231196 6L0 308 59 Korea Housing Fmance Sector 87 128530 06130/91 150.0 m1 60 KOrea Pusa Urban Management 87 L28010 12431190 50.0 L8 61 Korea Urbn Land Devdopment 86 127040 1213190 15.0 0.1 62 Korea Seoul Urban Transport 85 125140 06J30/91 53.0 2.5 63 Korea Ta Urban Traport 88 L29080 12131193 3Q0 2.6 64 Kore Housing Project 91 L33290 06(30/5 100.0 3.6 65 Nepal Mun Dev & Earthquake 89 C19880 06f30/96 41.5 4.4 66 PNG Specal lntrventions 91 132890 12131193 3Q0 143 67 Philippines HouingSetor 88 L29740 06130/94 160.0 16.8 68 Philippines MunicipalDeaveopmentl 84 L24350 06030%94 4Q0 4.4 69 Philppines MunicipalDevelpoment I 90 L31460 12/31196 400 5.7 70 Phliine Ura N-Regional Cities 83 L22570 V131/91 67.0 15.9 71 Sri Lanka Mudcipal Mangement 86 C16970 06130/94 13.0 7.1 72 SriLAnka Emergecy Reonstrction 88 C18830 124391 78.0 52 73 lhailand SheltrM 87 127950 13192 2L0 10.5 74 Tbaland Regioal Citia 85 L25200 03/3192 27.5 6.2 75 Vanuatu on No 91 C22620 06130/95 3.4 0.3W . Datanotavailable. Source: MIS Implation Summar (Form 590) as of July 26, 199L -45- ANNEX 7 URBAN PROJECTS UNDER IMPLMENTATION DURING Y1 LOAN REVISED LNICR FY 91 SPN CRED}T CLOSING AMOUNT TOTAL COUNTRY PROJECT NAME FY NUMBER DATE USS mi.) (SW) EMENA 76 Egypt Grea" Cairo Urban Dev't 82 L21760 12/31/92 59.0 6.2 77 I Ehqua Revey 91 L33010 12/31/94 250.0 8.0 78 Jordan Amman Transport'n & Mun. 84 L23340 06/30/92 30.0 8.3 79 Jordan CVDB 2 86 L26140 06/30/91 15.0 6.2 80 Jordan Urban II 85 L25870 06/30/92 28.0 10.4 81 Jordan Naiondal Ufban Dev't 87 128410 06130/93 26.4 9.3 82 Morocco Second Housing Finance 90 L31220 12/31/94 80.5 13.8 83 Pakitan Lahore Urban 83 C13480 12/31/92 16.0 37.8 84 Pakisan Punjab Urban Development 88 C18950 03/31/97 90.0 30.6 85 Pakistan Karchi Speca" Dev't 86 C16520 09130/92 70.0 41.8 86 Tunisia Urban Transport II 84 L24290 06/30/92 33.0 10.8 87 Tunisia Urban Developnt M 83 L22230 06/30/93 25.0 8.0 88 Tunisia Urban IV 87 L27360 12/31/94 30.2 7.8 89 Tus Fifih Urban 89 L30640 06/30/95 58.0 22.9 90 Turkey Cukurva Urban Dev't 87 L28190 06/30/95 120.0 18.4 91 Turkey Cukurova Urb EngineerI 85 L25370 06130/89 9.2 1.2 92 Yemen A.R. Sana'a Urban Development 82 C12020 06/30/92 15.0 8.5 93 Yemen A.R. TaizFloodDisasterPrev./Ma 90 C21600 12/31/98 15.0 7.0 94 Yemen A.R. Urban II 84 C14410 03/31/92 12.0 8.0 95 Yemen PDR Emergency Flood Reconst' 90 C20730 12/31/92 10.0 14.3 .. Data ot available. Source; MIS l on Summary (Form 590) as of July 26, 1991. -46- ANNME 8 URBAN PROJECTS UNDER IMPLEMENTATION DURING FY91 LOAN REVISED LN/CR FY 91 SPN CREDIT CLOSING AMOUNT TOTAL COUNTRY PROJECT NAME FY NUMBER DATE (USS MU.) (SW LAC 96 Ar1ina s or I 89 L299 03/9 300.0 27.3 97 ArgnIa Muniipal D opnt se L29200 0630195 120.0 17.7 98 Argei Prvial Devobpmet 91 L32800 1231196 200.0 15.9 99 Solhia L P Municipal Dev't 88 C18420 0695 15.0 28.8 1t00 Dm1 Rio Emrgeny Flood Re@onatmo 88 L29750 MUM31/92 175.0 34.0 101 Brad Salvador Meto Devt 86 L26810 12/31/94 55.0 15.6 102 Bra Municipal Dev't (Pau) 89 L31000 12/31/94 100.0 12.0 103 Bazil Municipal Dev't (Rio Gnds) 90 L31290 1231/94 100.0 16.1 104 Brazil St Camrina Towns 86 L26230 12131192 24.5 12.1 105 DBoa Red& Itrated Ura 82 121700 12/31189 123.9 0.2 106 Cbilo Houing Sector 85 L24820 1231/88 80.0 0.2 107 Chile Housing U 89 L30300 06/309 200.0 45.8 o108 Chile U Roads & Tansport 89 L30280 231/94 75.0 12.9 109 Columbh Munipl ieopnat 91 133360 12/3M7 60.0 2.2 110 Ecuador NML Housing a 88 L28980 12/31/93 60.0 14.9 111 Euador Municipd Developmnd t 91 L32850 0/30/97 104.0 19.2 112 M Salvador Earthquakle Rxonrduion 88 L28O730 12/1/93 65.0 17.5 113 Guatalua Munmicipa Del> opment 8 1329720 12/31/94 29.0 1.8 114 Hsii Urban Dedlopmet 1 83 C13380 12/31/91 21.0 5.6 115 Honduas Municipal DIvtL PrA 85 I25830 12/31/90 6.9 4.8 116 Jamaica Udban Trnspoft 84 133890 09/30/92 16.0 2.5 117 Mexioo Municipal Strngoheing 86 136660 12/3114 40.0 5.3 118 Mexico UrbanTuporxt I 87 138240 12131/95 125.0 25.3 119 Mexico Low boaoma HomuinS 85 L26120 07/16/90 150.0 0.6 120 Meico Scoond Low ntone Housing 90 L31400 06/30195 350.0 9.5 121 Peru Lima MDtropoltn Ihvt 84 324511 12/31191 82.5 3.7 Sour..: MIS Implentatn Summary (Frm 9) as of July 26,1991. -47 - ANNEX It ROPORTION OF URBAN PROJEQ RATED SATISACTORY WITH A RATING OF ONE DURING PY91 crifteion U"'an Projet [' Rakwlde ?Micd D _vomtOb pedv so Pi 45 PI COMPlancOewIeWAlI COVenaW 46 pI 41 p[ PMoect Mgmit Frhom 45 pI 34 p9 Availability of Funds 61 p9 s3 P) PcurmentPrgs 43 1201 35 s21) Tnig Prgem 45 28 36 (28 Tencl Assisn Progrm 37 P61 38 127) Sd Progrs 35 36 34 PS] Envirental Aspec 36 (48 41 [47) Fmanoial Prfonxanc 31 (351 24 (40] [9 Parcn nt applaob andAr ot ratd (oher). Soure:. Operations Complx, M_anament Inforato Sytm. ANNEX 12 URBAN PROJECTS COMPARED TO OTHER PROJECTS UNDER SUPERVISION DURING FY91 Criterion Ranking Notes (out of 12) Projec Dvelpm Objectve 7 Complnc w/LAll Coveat 7 Prqjc MSgn PEfrmanc 3 Rated blow Ener and Industry. Avalailty of Funds 5 Proment Progres 3 Rated bclw Tdlowmm. nd hIdustral Dv. Training Pogs S Tid with Ener. Tcnial Assotanc Program 8 Rated above Aiculu, Indul Dev., Populion, Tecb. Assitnc. Sudws Prss 7 Envionmet Aset 9 TId with ndustry, 36 paen of projet rated 1; 48 pecen not rated or not appleable. Frnancial Peform 5 Tied with lIdustial Dev./Pnane. Rankng icludo e folowing sectors: Inusty, Population; Pow; Techa Assistance; Teeommuniation; Transportation; Ubanoio Waer Suppy & Sewage. Ranking cluds Publfi Sceor Mana nd Tonum due to the sma number of projet. Source: Operation Co mgmnent Information SyM- _ -48 - ANNEX 13 PROJEC COMPLETION REPORTS FLED DURING FY91 Country Proect Name LN/CR ASIA bIdonesia Utban Sector Loan 12816 Korea Pua Uran Manarinent I12801 Korea Joonju Regional L2388 Nepal Technical Assistance II C-1379 EMENA Morocco Third -Urban Development L2245 Turlky Curmva Region Uban Engieerng L2537 LAC Brazil Northeast Urban Floods Reonsrction 12645 Brazi Parana Market Towns Improvement 12343 Brzi Recife Metropolitan Development L2170 Chile Public Sector Rousing 12482 Ecuador National Low-Cost Houing L2135 Mexico Low Income Housing 12612 PROECT PERFORMANCE AUDIT R1EPORTS FLED DURING PY91 Coury Poject Name Loan No. AFRICA Lesotho Urban Development Project C1036 ASIA Korea Second Gwangju Regionad Proect L1758 EMENA Morocco Rabat and Second Urban Dadeopmt L1528 L1944 Souce: Operation Evaluato Dqrtme Infau & Ene Division. -49- ANN 14 PY72-91 TOTAL COSTS AND TOTAL L13NDING FOR URBAN PROJECTS (USS mIUmio) AMICA ASIA EMNA LAC TOTAL YEAR COST LOAN COST LOAN COST LOAN COST LOAN COST IOAN 72-74 17.3 11.0 128. 51.0 97.8 62.3 60.3 35.0 303.9 159.3 75 87.4 44.5 76.0 40.0 0.0 0.0 15.5 8.5 178.9 93.0 76 0.0 0.0 137.0 5S.0 0.0 0.0 43.2 21.6 180.2 79.6 77 13 44.0 207.3 101.5 0.0 0.0 24.5 12.7 3S4.1 158.2 78 119.1 78.2 201.1 95.6 58.6 32.0 400.9 162.S 779.7 368.6 79 153 12.0 199.9 102.0 45.0 19.0 501.0 176.5 761.2 309.5 80 60.3 38.8 452.9 222.0 0.0 0.0 210.9 83.0 724.1 348.8 81 24.5 15.0 410.1 175.0 138.7 S7.0 72S.0 254.0 1,2983 501.0 82 117.3 61.0 63.2 33.0 142.2 74.0 538.0 206.8 860.7 374.8 83 119.2 69.0 783.8 338.1 293.6 101.0 81.6 46.2 1,278.2 554.3 84 166.1 84.0 276.S 149.8 166.0 75.0 465A 191.2 1,074.0 500.0 85 59.7 42.0 512.2 218.5 99.2 37.2 585.0 86.9 1,256.1 384.6 86 283.8 153.0 3,208.6 500.0 20S.2 95.0 809.6 369.5 4,507.2 1,117.5 87 304.2 130.5 3,426.1 837.0 628.1 176.6 763.1 325.0 5,121S 1,469.1 88 234.1 1463 2,156.1 1,015.8 145.2 90.0 1,114.1 464.0 3,649.5 1,716.3 89 1,091.4 414.0 54.8 415 200.0 58.0 2,118.9 675.0 3,465.1 1,188.5 90 SISA 360.4 153.8 86.2 392.2 10.5 927.0 450.0 1,988A 1,002.1 91 169.9 98.3 1,288.9 543.1 4,172.0 250.0 1,063.2 364.0 6,694.0 1255.4 1991 Rgional X 7.8% 43.3% 19.9% 29.0% 100.0% AVERAGE (690) 485.8 240.9 1,799.9 496.1 314.1 105.0 1,1465 456.7 3,746.3 1,28.7 lReWI % 18.5% 38.2% 8.1% 35.2% 100.0 Souroo Anl Report FY72-91 -50- ANNE( 15 CONMRY SUMMRY OP TMAL FROJBCT COM (USS .Uaas COONMY TOrAL PY91 PY90 FY9 FY8? F FY6 FY85 FMY4 FY3 M Y82 M PYS F0 FPY79 FY8 F77 FY76 FY75 F742 A _mi 1,423.0 575.0 60.0 240.0 IBm_. 243 243 8sk" 654 6S. Idyi 43A U3 225 _cewam 15.? 113 4.4 Bran 3,240.0 227.0 2269 MA 468.2 4296 150.2 25.1 347.8 257.0 465.? 248.9 EukisSISO 77A 30.0 385 9.1 _umail 40.8 24.1 16.7 C...... 3065s 253.5 55.0 C! 1860 1,24.0 576* 706.5 2.6 4.3 372.6 Cdoau* 435.0 18.2 14.5 53 62.0 Co.Ric 314 514 C dilw 6234 93.1 04.2 104.0 122.3 Dha 6k0.? 45. I5.2 397 17S 42.2 '5 mm 7645 300.0 312.0 100.9 Sl 1 sm' 137.2 116.2 21.0 3 1 142.4 1.4 24.5 1.5 wqI. 126.4 99. 26.8 1P 51.5 513 am* t2.4 12.4 e143.5 100.4 16.8 263 0.ula 44.8 44.6 Gwn 9".1 81.7 16.4 Hld1 23.8 23.8 Random 82 8.2 3.!. 2,903.4 ,24.5 2357 150.5 256.7 5.2 Sl.7 84.0 121.7 136.9 1o5 96.9 hwmu _ 55.8 455.0 2259 93.9 1,206.7 64.4 86.1 9. 10.8 si1 km 4,237.9 4,170 65.9 km "A59 298 30.0 loI_s 339.1 933 34.1 U.5 654 574 KPS $1365 37.4 69.4 29.5 Kom 5,214.9 00.0 145. 1,6. 18.0 204A 145.3 316.0 20.0 154* 25.0 49.2 42.2 7.0 131 - 13.3 15.3 ANNEX 15 COUNTRY SUMM Y OP TOTAL OMCT CO os (U$ NUSS cOOWmY TOTAL FY91 FY90 pY89 FY8 pY87 FY6 FYM5 FY84 p Y83 FYS2 F8 Yl F0 M F9 _ Y78 FY77 FY6 FY7M M4-71 ihd*Mwsa 18.0 18.0 bbi 18.2 18.215 MAblsyd 153.6 72.0 3IA Ma U.8 345 153 Madmsw 45.0 20.S 243 Meo* 1,894.2 700.0 294.9 380.0 15.2 468.0 36.1 woo 682.7 3543 209. 81.1 37. -rmnMe 83.8 83.8 N91 54.* 54.8 Nls_mn 79.1 22.8 26.0 303 N3io 21.8 27.8 Ni_h 4SL4 688 9GA 2493 366 a31.8 145. 148 24.0 Pau.aa 133.3 1333 hu Now GI 403 40.3 Pu 179.1 135.9 432 PM%pi= 12 S7.2 32.0 68.8 114.6 115 120.0 69.9 65.0 *hamd 5.6 56.6 R _*b 0.2 66.2 SwTmWWdn*o 7.6 7.6 S_awd tl1.2 333 783 6.7 129 Sd 1. 131.8 111.4 204 Usia. ~~83.8 as* 46.0 293 16.7 243* 853 56.9 56.4 344 172 4853A 200* 67.4 82 60.1 4.0 2.6 481.4 467.4 10.7 33 tbal 38. 38. van"s 5.0 5.0 Y_= AJL 66.2 223 17.9 26.0 YonaDR 15.4 15.4 Z7A. 41.2 41.2 ZhIa*bw 6926 580.0 112.6 Imu a w ~'450.~04CU84 'YS.45%.36 94V 443126I .7. .73 6, ,9. 1244?; ;o 761n>N4 zi.779.1 8541 18Zi03;s '£75. 'so ANNE 16 COUNMRY SUMMAZY OF URBAN LENDING (USS mEO OUNRmY TOrAL PY91 PFY90 FY9 FM FYII FM Y86 F Y85 FY84 FY83 FYM2 MYI FYmo FY9 FY Y77 FY76 Y75 FM YW74-? Av a 620. 200.0 300.0 120. v1Mm sa s B _sw 47A6 47.6 BolivI 32.0 15.0 17.0 Belwm 11.0 8.0 3.0 BrA 1,281.0 100.0 I0. 175.0 200 179S S2.7 8.9 123.9 90.0 163. 18.0 1H FUM 50.4 20.0 22.2 $ 9a1 36.0 21.0 t5.0 Canm, 166.0 1460 20.0 (Sb 355.0 275.0 80. Cimbs 343.4 168.4 30.0 145.0 Caib 1383 60.0 40. 135 248 code Rm 16.5 16. cow C< 0* 4 t287.0 66D 126.0 SID 44.0 t Jom* l 16.2 11.2 S.0 * DmL. 32.S 7.1 2S.4 B,ai 230.7 104.0 60.0 35.7 31,0 VWt 73.0 59.0 14.0 PSI vdAO 863 65.0 12.7 S.5 1Biapl 95.2 75.2 20.0 Pi 16.2 16.2 Gand 11.5 11S Oi 102.6 70.0 10.6 22D (Imaleama14 290 290 O_I. 72.2 57.0 4.S 10.7 soM 21.0 21.0 Ho1d. 6.9 69 lds 13653 550.2 150. 62.0 136.0 171.1 250 420 56.0 7.0 49.0 3SA Iw d 1t201.1 241.3 150.0 321.0 27S.0 393 43.0 54.0 525 25.0 Iran 292.0 250.0 420 lAnda 31.0 16.0 I5.0 login 120.4 26.4 IS.0 28.0 30.0 21.0 ey 95.0 290 50.0 16.0 Nn 863.0 100.0 300 200.0 150.0 S3A 60.0 100.0 900 6S.0 IS1 L_oda. 26.4 20.4 6.0 1Lba 10.0 10.0 AMM6 COURY SUM RY OF URBAN LENN (USS$ WWI* couKiKY MAL MY91 FY90 Mr5 m8 m PF FY5 4 FY8 FY2 FM M Yl 0 " Y79 M Y8 FY7 PM Y F7 FPMrj 12.8 ~~~~~~~~~~~~~~128 15.0 15% malyb 4420 260 16M MaO 40* 23* 120 Ablo_dis 27.4 12.4 ISA 1OAOO 354.7 SS00 129.0 190.0 9O 164* 16. mageese 194. NJ 0* 3626 £8.0 _ 41 ~~0* 60. Npd 41J 415 bup. MA 16* 2L2 20* Nbst 20* 2"0 wank 262.5 5* as 125.0 17 176* 00 7.0 16* P anaISA 2S * NowA 20.0 20 PM I1.1 2s 21A . ipm 461. 4* U"60 5 67.0 * 3 7" 22 =A PoW 2S. 25 _^SN 32<0 3L0 .msIbIa4. 11* 1* 5* Saa 8"0 20 4ff 6.0 *.0 8d1hLAM 91* IS* 12* $mm 75*.0 75 r_Mada 20.5 12a0 5 T_dLd S12.1 22.0 27.5 29 * $A 1wa 183.2 $3A 30.2 33.0 25.0 19 13* 71"by 131. 120 9.2 25 U_eah 237 23.7 Va 2.4 3A Y _umAJ. 42D 2S.0 12D 15*O Y_m Di 10* 10 0 Zingu 20D 20 lZiAbdb_ 123.0 30* 43.0 ANNEX 17 TOTAL NUMBER OF URBAN PROJCrS COUNTRY TOTAL MYI FY90 FY29 FY11 FY17 FY26 FY25 FY14 F8Y3 FY82 FYI1 PY20 FY79 FY7 FY77 FY76 FY75 FY74-72 Arpiina 3 1 1 1 B_~ 1 1 Bol"I 2 1 1 Boawn 2 1 1 BraI 14 1 I I 1 3 1 1 1 1 2 1 Buka11Fmo 3 1 1 1 Bumid 2 1 I swX _a 2 1 I Ciha 3 2 1 China 3 1 1 1 Coloa 4 1 1 1 1 Coedlwk. 4 1 1 1 I Dibol 2 1 1 Dom.Rep. 2 1 1 BRcsmd 4 1 1 1 1 Bgypt 22 I 1 Bl Su_btd, 3 1 Baliqa 3 2. I ird I I Vp 1 ~ ~~~~ 1 a_u 3 1 1 1 ANNEX 17 TOTAL NUMBER OF URBAN PROJECrS COUNTRY TOTAL PY9i FY90 FY89 FY88 PY87 FY86 PY8S FY84 FY83 FYM2 FY81 FY80 FYM9 FY78 PY77 F76 FY7S 4-72 a _ted I I Gum.. 3 1 1 1 Hwd I I HodmI I bmu 14 2 I t t 2 t I I 1 2 1 bmmdan 11 2 1 2 1 I t I t t kai 2 1 1 Jaoica 2 1 1 ) 1 JoranI I I I Keo. 1 1 11 2 Korea 11 2 1 2 I t1 1 1 t .mtb 2 I t Mibeda ' I I U"_m I I Imak 2 1 I man 2 1 1 r itius1 2 1 11 L&o 2 t1 1 2 t 1 1 UQCOOm 4 1 I I I I I _~~~~~~~~~~~~~~~~~~~~~~~~~~~ N+P- 3ItI AMM 17 TCrAL NUMBER OF URBAN PROECrS COUNTRY TaTAL FY91 FY90 FY89 9Y88 FY87 FY86 FY8S FY84 FY83 FY82 PYI PY80 FY79 PY78 FY77 PY76 FY75 FY74-72 Nw I 1 Ni4i S I 1 2 1 Pdh" 3 1 1 1 r_I I I r_=Nowob I I Pamz 2 1 PtHi_ 9 I 1 2 1 1 1 11 8w"OwdIh 2 1 1 pmm 4 1 1 1 Sri tama 2 1 1 -e I I T DA 2 1 lbud S I It 1 t Tou 6 1 1 1 ULka I I Yom AR 3 1 1 YUa D.R I I Zwai I Y *mDL 2 1 1 ~ ~ ~ ~ ~ ~ ~ .- EI .O ANNEX 19 FY92 URtAN PILJNE PROiWS (US($ Mo) TOTAL TOTAL LOANI PROJECr PROJECT NAME STATUS 3U) IIDA CREDrT COST AFRICA Angols Infits6au Rab'ngB . 38.0 38.0 42.5 Aho Lobito/Be.2cobilitation L 50.3 50.3 70.0 Bonin UrbandMaSagJt& Rebab' L 11.5 11.5 27.2 Malawi Local GovrMnt L 20.0 20.0 40.0 Togo Lome Urban Developmet L 15.1 1S.1 30.0 Uganda Nodrhe R tdon S5.0 55.0 TOTAL 0.0 189.9 189.9 ASIA China TiajinUrbDev & uvirn. S 100.0 100.0 200.0 Inia ICDS (Biar & MP) L 125.0 125.0 243.0 huhnds Housig Sectr II L 50.0 50.0 150.0 Indonesia Surebya Uan I (Water) L 70.0 70.0 140.0 Korea Sew_g (Pun & Teejon) 92L 40.0 130.0 Kra 93S 80.0 600.0 SriTLAnka Localoverment & D't IC 35.0 35.0 40.0 TOTAL 240.0 260.0 380.0 contmiued I~~~~~~~~~-8 ANNEX19 FY92 URBAN PIPELINE PROJECTS (USS mio) continued TOrAL TOTAL LOAN/ PROJECr PROJECr NAME STATUS IBRD IDA CREDrr COST EMENA. Algeria Cadastre 25.0 25.0 100.0 Egypt Tourism/Puivitization Li 125.0 125.0 300.0 Pakistan Sindh Urba Development 97.9 97.9 Poland Housing L 200.0 200.0 600.0 Tunisia M:unicipal Developent 100.0 100.0 TOTAL 450.0 97.9 547.9 IAC Mexico Housing Sector 400.0 400.0 Venezuela Bario Upgrading 35.0 35.0 70.0 TOTAL 435.0 0.0 435.0 Ll Prject into two sperate proects: 1 Tourim Sector Restucin and privatit Poject (PY92L) 1 Tourism nfiastuctu and Environment Mangement Ptoject (Y93L) .. Data not availabe. Souame Mamen_t nformation System, Five-Year Lening Pam. -59 - ANNEX20 FY93 URBN PIPEIE PROJBCTS (USS milon) TOrAL TTAL LOAN/ PROJECT PROJECr NAMS SrATUS DRD IDA CREDIT COST AFRICA Cut Afr' Rep Municipal D svlopn.z R 25.0 2S.0 50.0 Congo UrbanManagement R 2S.0 25.0 25.0 Gambia Urba Bnviiobmt L 10.0 10.0 23.0 Mli Public Woib nd Capacity Builddi L 1S.0 15.0 1O.0 Mozambique Usban RdabilitAion I L 75.0 7S.0 80.0 Nwer Municipl havsauctr 50.0 50.0 Senel Public Wora and Employment I R 25.0 25.0 27.7 Somalia R 20.0 20.0 50.0 Tan_nia nfrDasucture E.g 50.0 50.0 60.0 Zairo Urban I L 24.0 24.0 57.1 Zambia _Ifrastuctu Enginn L 10.0 10.0 20.0 Zambia Ainwqs R 10.0 10.0 TOTAL 25.0 314.0 339.0 ASIA Baldesh Munipl Dwelopment C 60.0 60.0 B1ua Infastucture Dav. 30.0 30.0 China Zhojiang Utban L 150.0 150.0 260.0 China Main Usban and Ewronnmot S 100.0 100.0 210.0 Indonsia Subaya Urban H L 90.0 90.0 290.0 Philipie Municipal Devlopmet m S 50.0 50.0 72.0 Philippines Rurd Ifatucture Prject S 100.0 100.0 145.0 jSolomo Islands Housing S 4.3 4.3 7.0 TOTAL 240.0 254.3 494.3 conai_nd -60- ANNEX 20 FY93 URBAN PlPELINE PROJECTS (US$ million) contiaued TOTAL ToTAL LOANI PROJECT PROJECr NAME STATUS IBID IDA CREDIT COST EMMA Algeria Cnc Istry L S0.0 EBsp Tourisnunfrastracture* L TBD TBD TBD Iran Flood Control S 100.0 100.0 100.0 Irn Tehra EniAronment L 200.0 200.0 200.0 Morocco Municipal Development 1I 100.0 100.0 Pakistan Shele 71.1 71.1 351.4 Pakistan Punjab Envimend 94.5 57.6 152.1 184.6 Yemen Urban Services deelopment L 9.2 9.2 17.5 TOTAL 494.S 137.9 632.4 LAC Peoa Inastuu}n Rebabilitation L 1000. 100.0 275.0 TOTAL 100.0 0.0 100.0 * Plumrefrrtofooxte 1 inAmex 19 .Data not milable. Sourco: Management _ nfor_m System, Five-Yea Lendig Progam -61 - ANE 21 FY94 URBAN PIM PROIECTS (US$ miou) TOTAL TOTAL LOAN/ PROJECr PROJEC NAME STATUS IBID IDA CREDIT COST APRICA Budkina a Urban EnvrUnme R 40.0 40.0 40.0 Ca_3oo Urban i4mt IPWovemt 40.0 40.0 Chad Urb/ W_ter R 20.0 20.0 40.0 Ohn Uan m L 48.0 48.0 58.0 Guinea Urban Environnent S.ni 30.2 30.2 Cote d'Ivoire Urban IV R 100.0 100.0 131.3 Madagascar Urban U 70.7 70.7 Nambia Low Cost Housing R 10.0 10.0 Nigria Environment (Lgos) R 140.0 140.0 300.0 Rwanda Development L 30.0 30.0 40.0 Snel UraIV L 20.0 20.0 59.0 Swaiand UrbanI L 18.0 18.0 50.0 TOTAL 308.0 258.9 566.9 ASiA China Sa Environme L 100.0 100.0 200.0 China L Envount S 100.0 100.0 200.0 Cina Hi Rderm L 300.0 300.0 600.0 India M.P. UIba IU L 150.0 50.0 210.0 125.0 Ildonesa L8qp Cities Urban Development L 130.0 130.0 200.0 Indnesia KaV1at)aUDP 9SS 50.0 50.0 Kampuches Tn*uwtue Rehabil;taion 95S 40.0 40.0 KaXPu_L Urba 25.0 25.0 Myannr _ifruucur D Neopmet 94S 30.0 INO Urban infratnutrmd Was. 20.0 20.0 TOTAL 650.0 345.0 965.0 contimud - 62 - ANNE 21 PlY94 URBN PIPLB PROIECrS (U-SS 01llio) TOTAL TOTAL LOAN/ PRO PROICr NAME STATUS IRD IDA C1l)II COST BMENA Algeria Lod Govt DNvp. PsO. S 100.0 iw.u Cuachoslavakia Municipd nd Houin S SO.0 150.0 EBypt Munial Management 100.0 29.3 129.3 Morocco Housin II 100.0 100.0 Poland Housing H 95S 100.0 100.0 TOTAL 550.0 29.3 579.3 LAC Bolvia Municipa Drlpmest L 19.9 19.9 20.S Bros NE Mudiipa D. lomt 11 R 150.0 150.0 3S0.0 Chile EavCirouzlam & NlSt. . 150.0 150.0 Columbia H Fnnce 150.0 150.0 Homdur Municipal Deut. H 37.0 37.0 Mexico Low bie. Hoi (Poap 400.0 400.0 Uruuy Montevideo Mu. Dov. 2S.0 25.0 TOTAL 875.0 56.9 931.9 ..N . N le. S~~~~~~N MENsrIuPI Data not available. Source Mangment Infrmation System, Five-year Ladn Program -63- ANNEX 22 FY95 URBAN PIPELINE PROJECTS (USS min) TOTAL TOTAL LOAN/ PROJECT PROJECT NAME STATUS IMD IDA CREDIT COST AFRICA Mali Ua m 30.2 30.2 Mozalmbique Rural Roads lnfiastucture 30.2 30.2 Seycelles Housing and Land 5.0 5.0 20.0 Tannia Oa I 40.0 40.0 TOTAL 5.0 100.4 105.4 ASIA. Bangladesh Metropolita Developmet 60.0 60.0 India KeRda Urban 100.0 100.0 India National Sheer 55.0 70.0 125.0 India HDFC II 150.0 1S0.0 _ionesa Urban Sector m 150.0 IS0.0 kldonedga Jdbotabek IV 200.0 200.0 hiipim Manila Urban Transpt 95S 120.0 Phillpines Metro. Manila Solid Waste 95S 80.0 Thailand Bngkok Regiona Trnsport 95S 100.0 VietN Muaicipa Dev. L 75.0 75.0 TOTAL 855.0 305.0 860.0 gEMENA HungaRY Housing/Cadastr 95S 80.0 80.0 TOTAL 80.0 0.0 80.0 LAC Argeta Ptovintia Devt. H 250.0 250.0 Cuile Housing m 100.0 100.0 Ecuador Municip Dt. 60.0 6D.0 Ecuador Housingm s5.0 50.0 TOTAL 460.0 0.0 460.0 Data noa available. Source: Mnagemet nhwntio system, Five-Year Lendig Program -64- ANNEX23 FY96 URBAN PPELIE PROJECrS (U-S million) TOTAL TOTAL LOAN/ PROJECr PROJECr NAME STATUS ID IDA CR rDlT COST AFCA Angola 40.0 40.0 Bunundi Comad Deelomwn 19.8 19.8 Etioi Mret Townls i 40.0 40.0 Kenya Municip Financel 55.0 55.0 Mauitis 10.0 10.0 Zaire Utban H 40.2 40.2 TOTAL 10.0 95.0 105.0 ASIA China IV 100.0 100.0 200.0 China Prvnal Ura Mgit- 140.0 140.0 280.0 ndia U tban &W 100.0 100.0 200.0 TOTAL 100.0 340.0 440.0 EMENA Turkey Md. Sin cities 150.0 150.0 Tunisia Muiicipd H 80.0 Yemen tmuOt.d R0.0 50.0 TOTAL 280.0 0.0 200.0 LAC Bail Udban U 250.0 250.0 Chile Uba Steet 75.0 75.0 Jamaica Housing Sector 30.0 30.0 Mexico Soid Waste l 150.0 15.C. Mexico Air Poluion U 150.0 150.0 Mexico Fed Distrdt Uba Impr 250.0 250.0 TOTAL 905.0 0.0 905.0 Data not 8aVilable. Source: Managenmet nbmation Sysm Five-S Yew Leding oPrganL -65 - ANNBXZ4 FY92 URBAN SECrOR WOUt PROGRAM PRIPLN Thr Contry Nmw M!LlI Status Date FY90 PY91 TOTAL (sw) (aw) (Sw) AFRICA suadi C _ D.wlapmnt 3BUISR04S .. .. 0 0 0 SotSh Afica Usbs Setor 3SOUSROOI1 .. .. 0 28.7 28.7 Ugna RustG. Di8t. Mg 3UANSRO37 Green 0630/92 0 0.4 0.4 ASIA Regio Urdn O wveview 4ASISR065 YeIdw 04/30/92 0 24.6 24.6 China Urban Lad Meaaem 4CHASR1II Green 06130m1 0 120.0 120.0 CamP. Bfft-lhd 4CEAS13 Yelow 06/30/92 0 0 0 hares C itie. 4CHEASR20 White 11/28191 0 0 0 China U_banLandMuaual 4CHASR114 .. .. Plilippim 1 4PHLSRD43 Yedow 08/16191 54.3 2.8 S7.1 Phiipie. IAwAs S. 4PHLSRDSS Grean 06/01/92 0 0 0 Nvp lhfast n tho Dev. Procs 4NEPSRO3S Gry 06/30192 EMBNA Region Local ovt Trnllou SBMNSR073 Wbit. 05/15192 1 33.3 34.3 Region Propety Righlt SENNSROSS Whit. 06/15192 0 0 0 Alpru Housin Secr SALOSR03S Yellw 10/31/91 3.9 17.9 21.8 Pakista U dban wavom 5PAKSRP86 Whit. 07/31191 1 3.9 4.9 Poland Muniip SPOLSRD52 Ge 011V1S92 0 0 0 LAC Region Fisal DcentrinLAC 6LCNSR077 Yeow 05/31192 0 16.4 16.4 RAgio Hosngskag 6LCNSRO92 Whit 1122/92 0 7.4 7.4 Boivia Low nomanoing 6BOJL036 G 12115191 0 4 4 b9zil MeL Sector Ream 6BRASROSO Gen 11/29191 5.8 S75 63.3 aCile MncpaFinano 6CHLSRD38 Gren 0512S/92 0.2 16 16.2 CostaRica Pub Scrlft Dccontr 6COSSRD24 .. .. GUna nfa Set Re 6GUYSRD7 Whit. 06/1S/92 mzco DeclUdm M 6MXCSR072 Gkey 07/08U91 40.2 2.1 42.3 Pau Dectr/fin. MsmL 6P1RSRO5I Whita 07115191 0 7.9 7.9 Urgay HoumgS Secow Nob 6URUSR023 Gre 08/15191 0 8.9 8.9 Data not aailable -66-* rA~~~~~~~~ 00 o 0 ooo o o o o o o o o o o X i i wa " o o ." 0° o o o oo CLAooe t~~ ~ c0@r0 wou oo ooooAX ANNEX 25 FY93 URBAN SECroR WORK PROGRAM PIQELE -_d Thu Coutra Now Piet ID Stu Dde FY90 FY91 TOTAL (Sw) (SW) (Sw) SDUNA Egypt Ubin SectorSNratey STSR9 rn 0831/92 0 7.6 7.6 Pakisa U_ba Sector SPAKSR092 White 03/01193 0 0 0 Tunisia Land RAe. Mmcagomuut TUNSR046 Geeta 12/01192 0 2.7 241 TIuNaIS GreterMTunislhtitutions White Turkey BosigSecSdrS o Sttg TURSR078 Wbhie 03J01/93 0 0 0 LAC Rio Povty &Icoo Die. aNRO73 Yllow 03/3093 14 23.5 37.5 Maxico L hr SategyPaper 6MXCSR120 Gen 07101192 0 3.8 3.8 Medco hllod. Cities Taft. 6MCSRO69 White 01/15193 1.7 0.3 2 Mexico Ub Setor Strte 6MXCSR12 Gn 07/0192 0 0 0 Psara Povrty Sudy 6PARSR2 Gey 10115/192 0 0 0 V! arela Dece Fin. Dm$. 6VENSR02S Grey 11/30192 0 0 0 Daft notlaW Source: managenunit af0oarrntioa6Systm. ANNMX26 FY94 URBAN SECrOR WORK PROGRAM PIL Thru CoM" N_0 P ct ID Stan Dte FY90 FY91 TOTAL (VW) (SO (w) AmCA, RPi SADCC hneisin 3AFRSR230 .. .. .. Ca.roon U Sector 3CAMSR44 On 011194 0 0 0 Mfanmbique EBiiug 3MOZSR0= .. .. .. .. SouthAfi Land Policy 3SOUSR0O4 Wlit 071O193 0 0 0 ASIA Buigladh Mer. Dev. I== 4BANSIU10 Grey 06/15194 0 0.2 0.2 China Co1attios nduatry St 4CRASR091 Whie 06/30194 33.7 0 33.7 India Boumy Urban Review 41NDSRI77 O 100193 0 0 0 Pacific Is Eviron Manage Review 41 S 0rey 10/07/93 0 0 0 Paa New 0. Envro Mane Reiew 4PAPSR027 Gry 11/07193 0 0 0 EMIA Ccoalvakia Environmet Review SR07 Geena 06/2194 0 0 0 114ary Ev. lames Papets SHUN5 9 Green 05/30194 0 1 1 LAC Ecuador Social Sector Review 6ECUSRC37 Gren 10153 0 0 0 Paraguay Soil Sector Study 6PARSR022 Y 10/1/3 0.5 0 05 Datenot available Sowon Masenagmn Ifommtion Syst.m AMC 27 FY95 URBAN SECTOR WORK PROGtAM PIPELUN TWO County Nam_ PojecD Stu Deb FY90 FY91 TOTAL (aw) (SW) (a) EMNA Paiata Con AdpLNowTecok SPAK1ROSS .. .. 0 0 0 -69s