ICRR 10112 Report Number : ICRR10112 ICR Review Operations Evaluation Department 1. Project Data : OEDID: OEDID : C2338 Project ID : P000097 Project Name : Urban Rehabilitation and Management Country : Benin Sector : Urban Management L/C Number : C2338 Partners involved : Fonds d'Aide a la Cooperation (FAC) Prepared by : Charles Derek Poate, OEDST Reviewed by : Kyu Sik Lee Group Manager : Roger Slade Date Posted : 07/27/1998 2. Project Objectives, Financing, Costs and Components : The project's immediate objectives were to : (a) support ongoing Government programs of infrastructure rehabilitation and environmental sanitation in the country's two largest cities, Cotonou and Porto -Novo, aiming at increasing employment and income of urban poor through public works; and (b) promote the development of local small and medium-sized private enterprises and involve NGOs and residents in the programs. The longer-term objectives were to: (i) support preparation of a public investment strategy in the urban sector; and (ii) lay the groundwork for reforms required to improve the management of urban development in Benin. The project had seven components: (1) labour-based urban infrastructure rehabilitation for increasing employment of the urban poor; (2) community-based environmental sanitation improvement in the project neighborhood; (3) urban development planning to support expanding urban areas; (4) management of urban services in Cotonou and Porto-Novo by contracting out road and drainage maintenance and waste collection services to the private sector; (5) local fiscal resource mobilization by improving the property data base and upgrading tax rolls; (6) urban management capacity building by training programs; and (7) sector strategy formulation through a series of studies and seminars on urban development issues. The loan amount was US$22.8 million (SDR 16.7 million), of which US$935,000 (SDR 683,934) was canceled. The total project cost was US$22.8 million. 3. Achievement of Relevant Objectives : Most of the project objectives were achieved. All road and drainage works were fully completed . Most of these were executed through labor intensive methods by local, small and medium -sized enterprises, which reduced current urban unemployment, promoted the local construction industry, and offered opportunities for NGOs and residents to participate in the programs . The Government successfully defined a coherent long-term strategy for urban management, including environmental and sanitary aspects. In 1995, the Government adopted a "Declaration of Urban Policy". Studies for the definition of this strategy have been finalized under the project, a priority investment program has been developed, and draft laws prepared and submitted to the Supreme Court and National Assembly were adopted in February 1997. The Decentralization Law was adopted in February 1998, and an Urban Sector Law is currently under preparation. 4. Significant Achievements : (i) The appraisal estimate of 24 percent ERR for paved roads was based on an increase in traffic of 15 percent. Under the project, traffic has risen by more than 100 percent, which suggests that benefits are much higher than first anticipated. In addition, investment costs were 10 percent lower than originally planned. (ii) The practice of delegated contract management was instituted through the project . Despite initial reluctance on the part of the Government, the effectiveness of this practice finally won the recognition and support of local and central authorities, and is now well accepted and commonly used by central government as well as by other donors. (iii) An assessment of community development activities indicates that accessibility to health services has improved markedly, incidence of most major illnesses has fallen in the community, vaccinations have risen, and malnutrition fallen . 5. Significant Shortcomings : (i) There was a 15 month delay in credit effectiveness due to concerns raised by the Beninese National Assembly about the use of autonomous executing agencies instead of state agencies to implement the project and manage project funds. (ii) The project's impact was initially reduced by lack of commitment to establish an adequate mechanism to ensure maintenance of urban infrastructure . The main impact of this lack of commitment was inadequate priority given to maintenance in budgetary allocations . (iii) There were also delays in the release of counterpart funds by the Government . Despite these problems the project was still highly successful in achieving its objectives . 6. Ratings : ICR OED Review Reason for Disagreement /Comments Outcome : Highly Satisfactory Highly Satisfactory Institutional Dev .: Substantial Substantial Sustainability : Likely Likely Bank Performance : Highly Satisfactory Highly Satisfactory Borrower Perf .: Satisfactory Satisfactory Quality of ICR : Satisfactory 7. Lessons of Broad Applicability : (i) Delegated contract management proved to be very effective and facilitated project implementation through the rapid signing of contracts and timely execution of project activities . (ii) The continuity of membership on key Borrower committees and on Bank supervision missions is critical to the efficacy of project implementation. (iii) Participation of local people in all phases of project activity greatly contributes to the sense of ownership of the project and uptake of project outputs. 8. Audit Recommended? Yes No 9. Comments on Quality of ICR : The ICR was satisfactory and project activities were clearly documented, but it did not estimate ex -post ERR. There was some inconsistency between the text and summary tables on project finance, probably due to exchange rate changes. The Borrower contribution to the ICR was satisfactory.