Document of The World Bank FOR OFCIAL USE ONLY MICROGRAPHICS RePWt N. 12151 Report No: 12151 Type: PCR PROJECT COMPTON RORT REPUBLIC OF YEMEN SANA'A uRBAN DEVELOPImNT PROJECT (CREDIT 1202) JUNE 30, 1993 Infrastructure Operations Division Country Department II Middle East and North Africa Regional Office This document has a restricted distribution and may be used by recipiets ony in the perfonnance of their official duties. its contents may not otherwise be dislosed without Wo1d Bank autorizaton .~~~~~~al Bakatouin Currency Ecuivalents Currency Unit: Yemeni Rial (YRl) (Yemeni Rials per US Dollar) Period gnd of Period Period Averago 197W-1982 4.5625 4.5625 1983 4.6765 4.5785 1984 5.8600 5.3533 1985 6.4850 6.4143 1986 8.9900 7.3980 1987 8.9900 8.9900 1988 9.7600 9.7717 1989 9.7600 9.7600 1990 12.0100 11.2600 Fiscal Year Government of Republic of Yement January 1 - Deuember 31 Measures and Ecuivalents I hectara (ha)- 10,000 m2 or 2.471 acres List of Abbreviations ECA/MENA - Europe & Central Asia/Middle East and North Africa Regions ERR - Economic Rate of Return lCB - Housing Credit Bank IDA - International Development Association LRD - Land Registration Department MENA - Middle East and North Africa Region MMH - Ministry of Municipalities and Housing. After May 1991 MMI was renamed NEUP MHUP - Ministry of Housing and Urban Planning NWASA - National Water and Sanitation Authority PCR - Project Completion Report PPF - Project Preparation Facility ROY - Republic of Yemen SAR - Staff Appraisal Report SDR - Special Drawing Rights SLA - Subsidiary Loan Agreement UDPU - Urban Development Project Unit YAR - Yemen Arab Republic. After unification in 1991 YAR became a part of ROY YGEC - Yemeni General Electricity Corporation FOR OFFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.SA Office of Director-General Operations Evaluation June 30, 1993 MEMORANDUM TO THE EXECUTIVE DIRECTORS QND ThE PRESIDENT SUBJECT: Project Completion Report on Yemen Sana'a Urban Development Project (Credit 1202-YAR) Attached is the "Project Completion Report on Yemen - Sans'a Urban Development Project (Credit 1202-YAR) , prepared by the Infrastructure Operations Division, Country Department II of the Middle East and North Africa Regional Offic,, with Part II contributed by the Borrower. The projdct was prepared as a demonstration operation with many far reaching objectives. It succeeded in providing urban infrastructure to the targeted low-income groups in two areas of Sana'a. Its completion was, however, delayed by four and a half years due to complexities of institutional reforms and beneficiary selection criteria. The project succeeded in reinforcing the technical capabilities of the main implementing agency. It also facilitated housing financing for low- income families through the newly established Housing Credit Bank. The project's achievements in implementing regulatory reforms for cost recovery and land registration were less than scheduled. The project's overall performance is ratwd as satisfactory, its institutional development as partial, and the sustainability of its benefits as uncertain. The project was succeeded by another operation (Credit 1441-YAR, alsc recently completed) which pursued the same basic objectives. The two projects may be audited as a cluster. The PCR is of good quality. ThSs docu t has restrScted distribution and my be used by recipfents only In the perfoannce their official duties. Its contents my not otherwise be disctosed mithout Uortd Bank authorization FOR OMCIAL USE ONLY pROJECT COMPLETION REPORT REPURLIC OF YEMEN SANA'A URBAN DEVELOPMENT PROJECT I=REDIT 1202-YARI Table of Contents Titlo Raoe no. Preface..... ..,....................... .. ...........,,9 90*** **e ...... I Evaluation Summary ................... ,L. ii RMLI (by IDA) 1. Project Identity........................................ 1 2. Backrond......... 1 3. Project Objectives and Desri.ption. .......... 2 4. Project Design and orgarizationr ............. 3 5. Project Implementation ...... 4 6. Project Results ............. ...... 6 7. Economic Evaluation and Rates of Return ... 7 8. Impact of Project....................................... 7 9. Project Sustainability ........... ...... 8 10. Bank Performance ................................... 8 11. Borrower Performance ..............8.............. 8 12. Project Relatiofnship ................................... 9 13. Consulting Services ......................... 9 14. Project Documentation and Datat........... 9 15. Status of Covenants.......................... 9 16. Lessons Learned ............................... ..... ... 9 (by Borrower) 1. Reflections on the Performance of the Ba n k 11 2. Reflections on the Performance of the Borrower.......... 11 3. Lessons Learn 17 PART TIII (by IDA) Table 1. Related Bank Credits..... 18 2. Project Timetable ...... 19 3. Loan Disburementst..... 20 4. Project Implementation. . .00*. . . . ..... ............ .. . 21 S. Status of Covenants4...... 22 6. Appraisal and Actual Cost... ... 24 7. Appraisal and Actual Project Financing.....*........ 25 8. Mission Data,,...,......................... 26 9. Economic Rate of Return..... .............. 27 10. Profile of Beneficares.. 28 Mapes IBRD 16031R, 16032R and 16033R. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. PROJECT COMPLT2ION REPORT REPUBLIC Og YEMEN (CREDIT 1202-TAR) 1. This is the Project Completion Repnrt (PCR) for the Sana'a Urban Development Project in the Republic of Yemen (ROY), for which Credit 1202-YAR in the amount of 8DR 12.8 million (US$15.0 million equivalent), was signed on January 28, 1982. The credit was closed on June 30, 1992, four and a half years behind schedule, and has been fully disbursed after cancellation of SDR 260,000 in May 1991. 2. The PCR was jointly prepareds the Infrastructure operations Division of MNa Regional Office prepared the Preface, Evaluat-on Summary, and Parts X and lug the Borrower, t-he Government of the Republic of Yemen, and the implementing agency, the Ministry of Housing and Urban Planning (MHUP) prepared Part II. 3. Preparation of the PCR started during IDA's final supervision mission of the project in February/March 1992 and is based, ;&or aLia, on the Staff Appraisal Report, correspondence between IDA and the Borrowerg and IDA's internal memoranda and reports. in May 1990, Yemen Arab Republic and People Democratic Republic of Yemen united to from the Republic of Yemen. ii PROECT COMPLXOQN REPORT REPUBLIC OF YEMEN MANAA URBAN DEVELOPMENT PROJECT (CREDIT 1202-YAR) JO&MD^ION SUMARY Obiectiven 1. The project was conceived as a demonstration project tailored to the implementing capacity of the executing agencies. The main objectives were to assist the government ins focusing intervention on development of urban land and the provision of infrastructure for the lowest income groups; strengthening and encouraging cost effective building materials and construction techniques; and reinforcing the existing institutional framework for future systematic implementations. _.Iem"at ion Experience 2. The closing of the credit was delayed by four and a half years, as a result of various factors (para. 5.04). All major components were implemented with the exception of the issuance of land titles and the connections to the sewerage network for some beneficiaries at Musayk (paras. 6.02 and 6.03 respectively). 3. The project did not incur serious procurement problems, except for delays in the administrative processes of roview and decision making, as well as inexperience with IDA's procurement guidelines (para. 5.06). 4. The overall project cost increased in YRI by 68 percent, -while the cost in US$ increased by 27 percent (Part XII, Table 6). The average depreciation of the YR1 relative to the US$ over the life of the project accounts for almost all the increase, while the depreciation ef the US$ relative to the 8DR over the life of the project was about 23 percent. S. The Credit was fully disbursed by the end of the 4 month grace period beyond the closing date (para. 5.08). Audits received of project accounts were deemed satisfactory (para. S.09). Results 6. The project was successful in providing urban infraseructure to the targeted income groupu through an upgrading component in Musayk and a sites and services component in Sawad Sawan which included 126 demonstration houses to introduce cost effective construction techniques. 7. The project was successful in reinforcing the technical capabilitles of the Urban Development Project Unit (UDPU) at the newly created Ministry of Municipalities and Housing (NNH), (which later became the Ministry of Housing and Urban Planning (MHUP)), and in providing home-construction financing facilities for low income families through the Housing credit Rank (HCB). iii.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~i However, the prrject was le successful in fully implemnting institutional and regulatory raforms relating to full cost recovery and land registration. fiugtainabilltv 8. The key to the sustainability of the benefits intended by the project is to implement a comprehensive and equitable resourco mobilization schem on a wide scale to ensure the continu^xtion and maintenance of these services and similar future programs without further burden on the limited public resources. Further institutional strengthening of the Urban Development Fund (UDF) will enhance the replicability of this project through the utilization of accumulated funds. 9. Continuation of the institution building and reform achieved at MMUP thus far is threatened by the diminishing ability of the public sector to attract and retain suitably qualified staff because of the low salary scales in the civil service (para. 9.03). Pindings and Lessons Learned 10. Problems and delays in project implmentation were due to the following major factors: (a) complexity of the institutional reform required of the implementing agency and the Government; (b) lack of clear lines of authority and coordination within and amongst different agencies; (c) initially stringent criteria and cumbersome procedures for the selection of beneficiaries for the sites and services component at Sawad Sawan; and (d) exceptional extraneous circumstances (para. 5.04). 10. The lessons learned from this project which was the first project to initiate alternative approaches to urban developuent in ROY are: more realistic estimates of the time needed to introduce new approaches to urban development and accompanylng institution bullding. Additionally, the projects should be slmple with Ilmited number of components; detailed enough in advance so that exogenous dependencies are reduced to a minimum; and tailored to the realistic capabillty of the implementing agency. An umbrella of strong Government commitment throughout the project is essentlal for lts success. This can be achieved through periodic and high level reviews between IDA and the Government to assess changing priorities withln the sector. REPUBLIC OP YEMN AS " A DEVELOPMENT PRO COMPIO ET lCREDIT 1202-YXAI -It PR CT REVIEW PROM XDA' S PRBSPECTZVE 1. ¢ Proiect Ydontity Project Name Sana'a Urban Development Project Credit Number 1202-YAR Credit Amosznt SDR 12.8 million Credit Cancellations SDP 260,000 Regional Vice Presidential Unit NINA Country Republic of Yemen Sector Urban 2. Sacakamnn °atrodctionLp 2.01 The Governmnt of the former Yemen Arab Republic (YAR) o 0essd interest in receiving IDA assistance in developing the urban sector in 1978. At that time the Government's urban policy and strategy were not well-defined. A sector study conducted by IDA identified and outlined a long-term stravsgy for urban development in YAR:Urban Sector Report (No. 2699-YAR), and recommended a priority action plan which was tle nucleus for this project. The project was identified In March 1979. During the preparation mLssions that took place between July 1979 and December 1980, the government expressed the urgency it felt and suggested an accelerated schedule. It was agreed that priority attention should be focused mainly on strengthening the institutional framework in the urban sector by implementing minimal cost sites and services and community improvement projects to create the precedent and experience required for long-term replicability. The appraisal mission visited YAR in June 1981. Negotiations were held in November/December of 1981. The credit was signed on February 5, 1982 and became effective on Xay 7, 1982. Sector Develonment Obiectivs._ 2.02 Rapid urban growth in YAR was a relatively recent phenomenon whLch started in the early 19706 after the Government had consolidated the country politically and succeeded in opening it to the outside world after the 1962 Revolution and a long civil war. Several factors have accounted for the growing urbanization, prominent among which are the cash .';comes from workers" remittances and rural-urban migration of single males. The institutional framework for dealing with this urban growth and associated problem was limited, and non-existent in the case of acquiring and developing land or implementing comunity improvement projects. 2.03 The principal element of a long-term urban development strategy for YAR was the creation of a viable administrative system with the delegation -2- of the responsibilities for urban development by the Central Government to the municipalities. Short-term urban development. objectives weres (i) increasing the supply of land which could be conveyed with secure tenure, urban infrastructure, housing and housing financet (ii) directing more of this supply toward lower income groupos and (iii) exploring alternative sources of 'unds to finance housing and infrastructure both at the central and local leve-S. polali Context 2.04 Prior to 1979, the Government of YAR had not yet developed a comprehensive urban policy. Much of government intervention had been on an d hoc basis with various ministries and agencies being involved in the preparation, promotion and implementation of urban reltted schemes. Several large, high cost, subsidized, housing programs had been lo..ched with mixed success, and were affordable to only medium and high income families. Government efforts to stimulate housing cost reductions by encouraging t'e importation of foreign technologies had adversely affected the ability of domestic firms to adopt the new technologies and remain competitive with foreign firm. In 1979, the Government decided to establish a new Ministry of Municipalities and Housing (MMH) with vested authority over urban develcmvent, including housing. Linkace aetwec the Pro2ect and Macro Pol¢i_ Obiectives 2.05 This pi;o-ect provided the government with alternative policies to subsidized housing programs whicb divert scarce financial resources frm the economy. The project was designed to make full use of private initiative in the housing sector while channelling goverment intervention toward removLag key bottlenecks in the housing delivery system by providing serviced plots, housing construction loans and secure land tenure. The project was designed to recover 81 percent of total project cost with the balance (related to trunk infrastructure serving other communities) underwritten by the Government. The project addressed the needs of the poorest segments of the popMlation in Sana'a, with monthly incomes below TRI 3,000 in 1983 prices, who had llttle access to serviced land and mortgage financing. It also promoted employment opportunities for local construction labor, and more cost effective housing construction materials and techniques through the pilot shelter component. 3. PKoiect Obiectives and Descriotion Proiect Obiectives 3.01 The main objectives of the project, whlch was conceived as a demonstration project, were to assist the Government ins (i) focusing its intervention on the development of urban land and the provision of infrastructure for the lowest income groups; (Ui) strengthening and encouraging local cor.;ractors and individual home builders to use cost effective building materials and construction techniques; and (ILi) reinforcing the existing institutional framework in order to implemont this approach more systematically in the long-run. -3- Froject Comrioner.ts 3.02 The project, at appraisal, consisted of the followlng components: (i) infrastructure upgrading and sites and services in two locations in the clty of Sana'a; (Ui) pilot shelter and housing finance scheme and (ill) institutional development. 3.03 The upgrading component at Kusayk covered 68 hectares of land, mostly built up, to benefit a populatlon of about 3,400 households or 22,000 people (10% of Sana'a 1981 population). Major physical works under this component included the provision ofs various surfaced and compacted roads, service roads and footpaths; storm water drainage; water-borne sewerage system to serve the eatLre area; construction of a main collector to an off-site sewerage interceptor; and street lighting. Other non-physical works included: extension of solid waste collectlon to the area; delivery of land titles through the land regiLtration program; and provision of credlt facilities for home improvements through the Housing Credit Bank (RCB). 3.04 The sites and servicjs component at Sawad Sawan covered 25 hectares of government-owned land to accommodate about 1,980 low-income households or 11,100 people. Physical works included the proviLsion of: various surfaced and compacted roads, service roads and footpaths; indivldual water and sewerage connections; storm water drainagel street lighting; equipment for garbage collection; reserved areas for community facilLties and commercial development; and trunk sewer to an off-site Lnterceptor. 3.05 The pilot shelter component lncluded 142 demonstratLon houses of two basic standard layouts utilizing locally produced building materials; and a building construction specLalist who would provide technical assistance. The housing finance scheme included a line of credlt of YRI 22.5 million (US$5 million) for constructLon loans to project beneficiaries. 3.06 The institutLonal development component allowed for a total of 18 man-years of consulting and advisory services to cover: (i) a study to establish a modern land registratlon system; (i) project execution; and (iLL) training and preparatlon of future projects. 3.07 On April 19, 1990 the descriptlon of the project was amended to provide for the procurement of refuse collection and disposal equipment and traffie signals, at the request of the Government, to utillze the savings in the Credit (para. 5.07). 4. Project Desdon and Orantzation 4.01 To address the problems of the urban sector, the project, whioh wa the first of its kind, was designed to provide the framework for the establishment of appropriate Lnstitutions and to stress the interrelationehip between the physical and the inotitutional buLlding components. In particular, the upgrading, sites and servLces and the technLcal assistance components would be the vehicle for initiating formal land registration policLes and procedures; better land development and physical planning -4- standardsl and the alleviation of bottlenecks for hoasing finance, as veil as cost reduction in construction and building materials. 4.02 Because of the very limited implementation capacity of the newly foumd MM and the HC8, combinMd with the pervasive shortage of quallfied counterpart staff, the project included a substantL1l amount of techlical assistance. Techniec1 assistance amounted to about 18% of project cost and in¢luded the establishment of an Urban Development Project Unit (UDPU) in AMG to coordinate and implement the project components. 5. 71askZnsmnnail Loan Effect&veness and Proisot ntagt&-= 5.01 The loan was signed on February 5, 1982 and became effective on May 7, 1982 as scheduled. Although the Government showed anthusiasm in satisfying the necessary conditions for effectiveness wlthout delay, there w&re early Pignq of impending delays to follow due to a lack of strong managerial procedures and clear lines of authority for project implementation (para. 5.04). Qnstruction 5.02 The physical works of both Musayk and Sawad Sawan were awarded to a foreign contractor which completed the work according to schedule and was of good quality. The demonstration houses were awarded to a local contractor who started with very slow progress and unsatlifactory work quallty. After continuous pressure from HRUP# work was finally completed by September 1987 with acceptable quality, 2 years behind schedule and with a lot of remedial work. Studies and Technical Assistane 5.03 The studies originally envisaged by the project (para. 3.06) to establish a modern land registration system in YAR and the preparation of the Second Urban Development Project were completed. The Land Regiatration study was successful in designing a land registration system acceptable to IDA and the Government. Thli system would establish land titles for both sites of the project as a precursor to national implementation. Nationwide applications of the system were not implemented because of the would be associated costs. At the closlng of the credlt, title isuance for )usayk was inccmplete because of a recent governmental reorganisation which affected the Land Registration Department (LRD). The preparation of the Second Urban Development Project (Credit 1441-YAR) was done in-house by the UDPU with external assistance from individual experts. Imolementation Dela=s 5.04 The physical works of the project were completed by the end of 1987, within the orlginal closing date of the Credit, and the project was substantially completed by the end of 1989, and closed about four nd a half -5- years later than originally envisaged. The project lneurred delays for the following reasones (a) cumbersome beneficiary aseection procedures at Sawad sawan due to inexperlence with such procedures and lack of initial enthusiasm by the public stemmLng from the stringent ellgibllity screening process, which was duly relaxed; (b) -ate st-rt of the physical works followed by slow progress of the demonstration houses due to ungatisfactory performance of the local contractors (c) onerous bureaucratic procedures for the processing and iLsuing of payments, lengthy procurement revLew and approval procedures and lack of coordination between the dlfferent ministrles; (d) unclear lines of authority between the Director of Rousing and the Project Unit wlthin MMUP, and diffLculty in attracting and retaining quallfied expert help; and (a) exceptional extraneous circumstances; the unification of South and North Yemen and the Gulf Crisis with the flood of returnees which preoccupLed the government and deflected lts attention. Closino Date Kxtensions And Completion 5.05 The closing date was extended five times from December 1987 to June 1992, to allow adequate time to: (i) extend housing construction loans since benefLciarLes were reluctant about borrowing from HCS at market rates (para. 5.07); (il) complete the studies; and (iLi) procure equLpment financed from thec credit savings realized (PAPA. 5.07), respectively. In retrospect, it can be argued that the extensLons were justifiable since at the time of credit closing on June 30, 1992, all physical works, studies and equipment procurement were completed. The institutional and operational objectives were not entirely met (paras. 6.02 & 6.03). Procurement 5.06 The project encountered no majoL procurement problems during tb- construction phase. Slow declsion maklng and cumbersome governmental procedures caused delays in the procurement of refuse collection and dLoposal equipment and traffLc signals necessitating an extension of the closLng date on two occasions. Proisot Cost aWn Lsburement 5.07 The credit experienced some savings due to the lower than estimated bid submitted by the international contractor for the construction of the lnfrastructure and a further flve per cent dlscount for early part- payments. Depreciation of the US dollar against the SDR, the devaluation of the ye nl RLyal and the reluctance of beneficLarLes to borrow from MCD for houaing construction at market rates have added to savings of about US$3.0 -6- million. The credit agreement was amended, in April 1990, to utilize the savings of the c-.edit to permit the procurement of refuse collection and disposal equlpment and traffic signals. 5.08 The diaOursement of the credit took about twlce as long as that anticipated at appralial (Table 3, Part II!). By the original closlng date of December 1987, only about S4 percent of the credlt proceeds had been drawn down. The amount of SDR 260,000 and SDR 64,000 was canceled in May 1991. Audits and Renorting S.C9 Accordlng to the credit agreement, MMUP and RC8 provided IDA wlth annual audits of thelr accounts audited by independent auditors, as well an seml-annual implementation progress reports for the UDPU at IHUP. 6. Project Results 6.01 Notwlthstanding its slow implementation, the project substantlally achieved its main objectives with regard to sites and services and demonstration houses at Sawad Sawan. The project was successful in providing 1,525 serviced plots which have been subsequently allotted to beneficiaries with income ranges between 3,000 and 2,000 YR1 per month according to the selection criteria set by MHUP and IDA. The vast majority of these plots have houses built on them or are in the process of being built (to date 229 plots remain undeveloped). About 700 housing construction loans have been extended to the beneficiaries from HCB totaling about YRI 42 million. The demonstration houses, 126 units, were completed, sold and have subsequently been added-to by the new owners. -,he area is serviced with several schools, a commercial center and common arous as well as receiving adequate garbage collection. 6.02 The project was successful in upgrading an area of about 70 hectares at Musayk, benefiting about 3,300 households. Application of cost recovery was limited since it was stipulated that cost recovery in that area was contingent upon connection to the sewerage system. Because of delays, outside the control of the project, in the propoBed construction of the Sana'a waste water treatment facility, only a limLted number of houses wOe connected to a temporary facility with limited capacity to serve about S00 houses. The iesuance of titles in the Nusayk area is incomplete because of a recent governmental reorganization that affected LRD. 6.03 Cost recovery from benefLciaries was assured through a contract between NHUP and the National Water and Sanitation Authority (NlASA), which collected, as stipulated under the Credit Agreement, a progressive addition to the monthly water bLIls after connection to the sewerage network. Cost recovery is not fully implemented in Musayk since not all houses are connected to the sewerage network. Those that were connected to the sewerage network have been paying the monthly Lmprovement charges regularly. 6.04 The project ha -atablished an Urban Development Fund (UDF) whlih would be the recipLent of the beneficiary repayments, and would subsequently be used for seed investments on similar urban projects. The fund grow unused, wLth deposits to date exceedLng YRI 25 million, malnly because: (i) the mechanics of utllilzing the fund were not clearly spelled out ln the SU and were left to be developed later; (Li) the government took a long tLme to process the bylaws governing the operatLons of the fund; and, (iii) the dLffLculty of finding suLtable staff to manage it. 7. Economlc Ivaluation and Rates of Return 7.01 in the SAR the estLmated economic rate of return (ERR) for the upgrading and sites and servLces together was 25 percent, which lncluded components having quantifiable benefits, representing 77 percent of project cost; upgrading and aLte. and servLces components with demonstration houses and constructLon loans. However, the detailed assumptions and analyses of the cost and benefit streams were missing from the project file. Therefore, following broadly similar assumptions used by the SAR, the updated ex post facto ERR was estimated to be 16 percent (Table 9, Part 11). 8. Imnact of the Prolect 8.01 The project contributed to the improvement of the quality of life for some 27,000 low income people at Musayk and Sawad Sawan by provldLng them with urban servLces. Potential beneficiaries had to go through a rlgorous ellgibility screening process, agreed with IDA, which gave priority to households with income below YRl 3,000 per month at 1983 prices. Table 10, Part III, highlights certain characteristics of the selected beneficiaries. 8 02 The project directly and indirectly improved the employment opportunities for individuals in the local home construction industry which has increased at a noticeable rate in the Sawad Sawan area utilixing the cost effectlve building techniques lntroduced and credit facLlities extended by HCB. The project also impacted the social environment by provlding plots used for schools, mosques and commercial areas. 8.03 The impact of the project on the institutional side can be observed through the enhanced abillty of the UDPU's staff to design and prepare, in-house, other urban development projects. 8 04 Furthermore, the project's infrastructure works whlch provLded water servlces, sewerage and solid waste collection and disposal have considerably improved the environmental conditions in the two areas of Sanaa. Nevertheless, contlnued delays in solving the problem of the temporary sewerage dLiposal plant in sana'a would eventually negate some of the improvements achieved by the project. Moreover, the solid waste disposal sLte is located above the main aquifer supplying the city of Sana'a and is a potential serLous threat. IDA missions have recommended relocating the sLte 4d llning the existing sLte with a waterprooflng membrane to arrest leachants from further contaminatlng the existlng aquifer. -8- 9. ro2isot Sustainabilitv 9.01 Sustainability of the net benefits of this project will depend on the ability of the Government to offev the beneficiaries land tenure protection through a modern land registration system, and continued urban services. The government has approved the land registration system but the complete implementation at Musayk has been delayed as the government is reviewing the organizational structure of the Survey and Land Registration Department. Bustainability of urban services, in general, depends on the ability to mobilize funds through an efficient and equitable municipal resource mobilizatlon system. The final results of the study for establishing the resource mobillzation system, financed under Credit 1441-YAR, will be delayed considerably. 9.02 The erosion of real incomes of the Civil Servants in general is creating difficulties for MMUP to maintain the institution building efforts achieved. NHUP's ability to recruit anl retain suitably qualified and experienced staff for current and future projects has been restricted. In response to requests by MHUP and general practice at the time, IDA had granted special salary supplements for UDPU's field staff to be paLd out of Credit 1441-YAR proceeds. Such supplements were later rescinded by the Government since they were not considered sustainable after closure of credit. 10. IDA Performance 10.01 IDA, at the project design stage, over estimated the Borrower's abillity to implement, for the first time, such a multi-component venture. The successful implementation of the project components required a complete and detailed plan for institutional build up in urban development and changes in the related existing Yemeni isetitutions and their mode of operation, even though IDA had studied the project in great detail and spent a great deal of time on preparation and appraisal. This could be explained by IDA's unfamiliarity with the urban sector in Yemen, aLnce this project was the first of its kind there, and the great urgency that the government had attached to the project. Twenty two supervision missions, spread over ten years, by experienced IDA municipal engineers, urban planners and financial analysts provided guidance, quality control, procurement advice and additional technical assistance, all aimed at improving the rate and quality of the project implementation. 11. Borrower Performance 11.01 The Borrower expressed strong commitment at the early stages of project incepion. Soon after, the project started incurring delays related, among other things, to institutional aspects such as: defining the role of the General Directorate of Housing and its staff in order to eliminate conflicting instructions; difficulty to attract and recruit expatriate staff, mainly because of a ceiling set by Government on the salaries of foreign experts; the lengthy review procedures of the cost recovery Steering Committee; the selection of beneficiaries; the approval of loans to the beneficiaries; and, the collection of down-payments for the allotted plots. The Borrower was not able to utilize the funds accumulating at UDF for similar projects. -9- 12. 12A - 2orrower Relationishi 12.01 The relationship between ZDA's missions and the Government and its lmplemnting entities was generally good. issues raised by the parties were addressed in a frank and constructive atmosphere. MMUP staff always sought advice of IDA missions, and whenever possible, adhered to it. 13. Consulting Services 13.01 Two consulting firms were employed to provide the required technical assistance. The first firm was responsible for the feasibility study and subsequently the detailed design and tender documents fort the infrastructure Upgrading and Sites and Servicess the Pilot Shelter Scheme; and, the Demonstration Houses. Work was completed satisfactorily. There was a four month delay due to misinterpretation of some design standards by the consultants. The second firm was responsible for the Land Registration System for Sawad Sawan and Musayk. The work was completed satisfactorily. 14. Proiect Documentation and Data 14.01 Most aspectg related to the project correspondence were well documented in the Divisi6n and Regional files. Supervision and semi-annual Progress reports during implementation period were generally comprehonsive. Moreover, some documents prior to project implementation, particularly those that related to economic and financial analysis, were missing from the project file or misplaced. 15. Status of Covenants 15.01 Covenants under the agreement were generally complied with. The covenant related to cost recovery at Musayk was partially met due to the inability to connect all the beneficiaries to the sewerage system (para. 6.03). The status of compliance with covenants is shown in Table 6, Part 111. 16. Lessons Learned 16.01 The project was the first urban development project initiating alternative approaches to urban development in TAR and thus provided a number of useful lessons which are worth highlightings (a) Institutional. Uven though the project devoted 18 percent of the Credit towards institutional development, the institutional reforms intended were ambitious and relatively novel and far reaching beyond the newly created implementing agency. This requires strong commitments on behalf of the higher levels of Government. For future projects a more realistic implementation schedule should be allowed for similar projects pecially when the implementing agency has limited experience with management of institutional reform in projects. It is worth mentioning, however, that the project was sucpessful ins (i) strengthening the in-house technical capacity of UDPU to -10- prepare other urban development projects; and (ii) promoting close and effective cooperation between MMUP, KNASA and Yemen Gneral Ulectricity cogporation (YTOC)e (b) CoCt e ost recovery ought to be directly linked to the actual services rndered and not contingent upon extenal factors over whloh the implementLig agency has no control over (paras. 6.03 & 8.03). (c) UMbanDeeoMent Fud. Lack of explLcit mehanism for utilLaing the fund ln addltion to the other delays mentioned (pWa. 6.04) resulted in the accumulation of an appzoimately I 25 mllion balance, that could have otherwise been put to better use. The BAR was vague in detailLng the operating mechanics of the UDI. (d) Upgzlna is more successful than sites and servLeos to the extent that costs per household are lowew and hence the"r l potentLal for wLder applicabilLty. 16.02 The limLtations of the site speclflc approach was apparent wlth regard to site specifLc lnterventions where projedt benefLciarLes, at Swad Sawan and Musayk, were being asked to pay for services whloh were provLded "frees to other urban residents. Subsequent operatLons have addressd this through a municipal resource moblizatLon study to delop a natLonal system, and a city-wide interventLon in Tais (CR. 2160-rn). -ll- PROECT COmTION REPRT SANA'A URBAN D LOPMENT PROJECT COMPLETION REPORT ICREDIT 1202-YAR) PART ?I PROJECT REVIEW FROM BORROWER B PERSPECTIV (Text a£ submitted by Borrower) 19 REFLnECTIONS ON = PERFORMANCE OF THE B a. Relations between the Bank and the Borrower remained good throughout the implementation period. Communication between the staff of the two was constant, frank and constructive. This cohesive relationship proved beneficial for all aspects of project implementation. b. The Bank was always prompt and cooperative in dealing with various matters relating to the credit including approval of civil works designs and tender aocuments; clearance of withdrawal applications; issuance of no objections to Borrower's proposals for employment of experts, purchase of equipment, payment of a portion of expenses out of the credit to the local staff during their training abroad; pricing of residential plots; beneficiaries selection criteria; cost recovery principles, conditions and mtethod; and restructuring of the project for procurement of solid waste management, traffic signalling, street lighting and other equipment. 2. REFLECTIONS ON THE PERFORMANCE OF THE BORROWER a. The project was conceived as a demonstration project being the first of its kind in the Republic. Its main objectives were to assist the government ins focusing its intervention on the development of urban land and the provision of infrastructure for the low income groups; strengthening and encouraging local contractors and individual home builders to ue cost effective building materials and construction techniques; and reinforcing the existing Institutional framework in order to implement this approach more systematically in the long run. b. For achieving the above objectives the following components were included in the project and were successfully completed by the Ministry of Housing and Urban Planning (HEUP) on behalf of the Borrowers (1) UMorading The upgrading of about 70 hectares of land in the neighborhood of Musayk (about 3300 households) was carried out through provision of improved drainage, sanitation, street lighting, roads and footpaths. The cLvil works were designed by a French firm of consultants, BCEQO. The designs were reviewed and modified by NHUP for ensuring their suitability to the site conditions which also resulted -12- in substantial monetary savings. The savings were utilized by upgrading additional areas of the neighborhood. The civil works were executel by a Chinese firm of contractors, China Road and Bridge Engineering Ccmpany Limited. The project was managed by a team of foreign and local engineers who formed part of the project unit. It was completed within the stipulated period of two years. The quality of work produced was good and the networks are functioning satisfactorily since their completion in 1985. (2) fitt.sand Services The development of about 26 hectares of virgin land was carried out in the neighborhood of sawad Sawan through provision of access roads and footpaths, water supply and sewerage networko, street lighting and household electricity and refuse collection and street cleaning services. The project accommodated 1525 low income houe'holds. As for the upgrading, designs of the civil works were prepared by the French Consultants BC$OM. The designs were scrutinized and modified by MHUP which resulted in substantial monetary savings without effecting the efficiency of t'e systems. The savings were used on asphalting of au4itional roads within the project area. The civil works were executed by the Chinese contractors, China Road and Bridge Engineering Company Limited. The project was completed within the contract period of two years. The quality of work done was good and the systems ar operating satisfactorily since completion of the project in 1985. (3) Pilot Shelter The pilot shelter component of the project comprised construction of 126 demonstration houses of four basic modules and eight different designs built as models for beneficiaries of the serviced plots. The houses were designed to use locally produced construction materials and to conform with low-cost building techniques. They were suitable for the climatic conditions of Sanaa and respected the local traditions and customs. Majority of the beneficiaries of the serviced plots followed these designs on construction of their own houses. The model houses were constructed by a local contractor, Al Toweiti National Contracting and Engineering Corporation in 1985. These were allotted to low income persons meeting special beneficiaries selection criteria. The houses wer promptly occupied and the area was turned into a thriving human settlement. (4) 7echnical Assistanc (a) The Develosment of Land Regigtration Policies and roceduresa The assignment was awarded to a South Australian firm of consultants, Sagric International. They had rich -13- experience of operating a modern land registration system based on the internationally known *Torrens *system. The consultants evolved suitable land registration procedures including the design of title deeds, after carrying out an extensive cadastral survey of the two project areas of Nusayk and Sawad Sawan, and also incorporating some important features of the current customary system. They also drafted an amendment to existing Law No. 12 of 1976 governing land registration in the Republic. They produced procedures and operation manuals and trained the Ministry's staff for handling all land registration activities. The new system was appreciated by all concerned government departments and is being successfully implemented in Sawad Sawn and on a new housing project under execution by MMUP. It will also be applied on the Second Urban Development Project in Hodiedah and on other similar projects to be implemented by MBUP in future. The residents of Musayk had liked the new system but are reluctant to pay the transfer tax (3.5% of the value of property) for change over from the existing system. It will take sometime to introduce the.new system to the wider areas of the country. (b) Proiect Manacement and Execution The project management and execution was carried out by a Project Unit established in the Department of Housing of the Ministry. The unit was commanded by an expatriate Project Manager. The duties and responsibilities of the Project Unit and its Manager were satisfactory to the Bank. The unit included a number of other foreign experts (Chief Engineer, Implementation Engineer, Building Construction Expert, Design Enginser, socio Economist, Financial Analyst etc) and their technical, managerial and administrative experience, knowledge and skills contributed to the successful management and execution of the project. Suitably qualified local staff also formed an integral part of the unit. They gradually took over from the expatriate experts and performed extremely well on the preparation, management and supervision of execution of subsequent projects. No major problems were encountered during the execution of civil works which were completed on tim.. After completion the works were handed over to YGEC, NWASA and Project Department of MIUP for operation and maintenance. However, the other activities like selection of beneficiaries, allotment of serviced plot. and model houses, payment of housing construction loans, cost recovery etc took longer time since the project was first of its kind in the country and HIHP did not have the necessary framework to deal with these matters. The procurement of additional oquipmnt for disposal of municipal waste, traffic signalling and street lighting after restructuring the credit also took long time due to procedural requirements. -14- (c) Training of Proiect Staff and the PXeOaration of Future Pro2icte The training of Yemeni staff remained one of the major goals of the project. Suitably qualified counterparto were assigned to the expatriate engineers, socio economist and architect/planner on urban planning, engineering and procurment. A team of about 30 Yemeni staff was directly employed on implementation of various project components who gained valuable experLence and confidence to organise, plan and manage integrated urban development projects. The Second Urban Development Project at Hodf edah (Credit 1441) was completely designed in-house by employing foreign experts and Yemeni counterparts as one team. The designs, specifications and drawings were prepared after extensive survey and study of site conditions and in close coordination with the concerned agencies like Yemen general Electricity Corporation, National Water and Sanitation Authority, Telephones Department etc. The tender documents were prepared in accordance with the World Bank procedures and the procurement of goods and works was carried out in conformity with the Dank's Guidelines. For the third urban project in Yemen, Tais Flood Disaster Prevention and Municipal Development Project (Credit 2160), foreign consultants were employed for designing and preparation of tender documents due to the peculiarity and uniqueness of the flood control works. However, the Yemeni counterpart staff fully participated in all aspects of project preparation. They are exclusively managing the implementation of the project, the only exception being an expatriate Advisor (Construction Engineer) who i employed due to the special design of hydraulic structures which form bulk of the civil works. The Emergency Recovery Project (Housing Sites Component) under Credit 2258 has been planned and designed exclusively by the Yemeni engineers who will also manage the construction phase. The following Yemeni staff were trained abroad and a portion of their expesems was paid out of the proceeds of Credits 1202 and 1441. -15- Insftitute Subiect Sitaff XTalnd Institute of Housing Housing/ 18 ungineers/ Studies, Rotterdam, Urban Planning Architects The Netherlands Japanese International Housing/ 4 Enginears Cooperation Agency, Urban Planning Tokyo, Japan Eagric International, Cadastral Surveying 2 Engineers Adelaide# Australia Halcrow Fox and Designing of flood 3 Engineers Associates, London, disaster prevention and ingland road structures and proparation of tender documents (5) Housina Loans and Assistance to Housina Credit Bank &_CD To facilitate low income beneficiaries of Sawad Sawan sites and services project build their houses, a sum of YR 60,000 was advanced as a loan to those who applied for it and who qualified under the selection procedure. The loan was paid through the Housing Credit Bank of Yemen. A Subsidiary Loan Agreement was signed between MHUP and HCB after obtaining approval of its terms and conditions from the World Bank. A sum equivalent to SDR 2,600,000 was relent to HCD who distributed it to 699 beneficiaries under the agreed procedure. The MCD li recovering the loan ln easy installments from the beneficiaries. To assist MCB staff in carrying out the operation, the services of an expatriate housiAng finance expert were provided. he helped MCD management to design and develop appropriate operating procedures and policies, reviewed Lnternal controls and proposed methodology for lmproving record keepLig and loan collectlon practices. (6) Selection of Beneficiaries A special commLttee comprising officials from MHUP, Xlnistry of Planning and Development, HousLng Credit Bank, Ministry of Labor and Social Affairs and Ministry of Civil Services was constituted to draft selection criteria, conditLons and procedures for allotment of serviced plots and demonstration houses, to scrutinize and verify the correctness of the information provided by the applicants, select deserving candidates and to make recommendatLons to MHUP for final selection of the beneficiaries. The committee performed its duties well. A number of bogus applications were rejected and the selection was carried out in a fair manner. The World Bank approved -16- the design criteria, conditions and procedures ef allotment before comencement of the operation. (7) Urban Dkveloument Fund Under a special law issued by R.. The Prime Minister, an Urban Development Fund was estLblished in the Urban Development Department of MMUP. A special account was opened with the Central Bank of Yemen for the purpose of depositing therein the amounts received from the beneficiaries from the sals of serviced plots and demonstx. ;.on houses; from NWASA for cost recovery from residents of Musayk; and payment by MCD against funds advanced for housing construction loans. The proceeds of the Fund shall be used only for the purpose of financing further urban development schemes in the country. (8) Cost Recoverv About 80 percent of the project costs are being recovered from the beneficiaries through improvement charges related to upgrading in Nusayk and developmeat of sites and services in Sawad Sawan. The costs which would be fully recovered include site preparation, land registration survey, on site infrastructure, design and supervision, project administration, provision for default and UWASA collection fee. Ixpenditures not directly recovered from beneficiaries but through tariffs included the cost of off ite water supply. Other expenditures not recovered included cost of technical asaistance, short term training and travel, special advisory services, equipment and office supplies. For sites and services in 8awad Sawan the cost was computed on per square meter basis and also included the cost of virgin land. The cost of upgrading in Musayk was calculated on per building basis and is being recovered through IWABA with whom XHUP signed a separate agreement for this purpose. Cost recovery for sites and services at 8awad Sawan is being effected directly by MHMP. The cost recovery principles conditions and procedures were approved by the Bank prior to their application. (9) epo9rtina On project implementation and auditing of project accounts was carried out on time. The format of six monthly progress reports was agreed with the Bank's supervisory staff and all required information on technical, financial and administrative aspects of the project was included in it. The reports included all important events zihich took place during the project implementation. (10) Comnliance wlth covenants NHUP remained seriously committed to the agreed covenants which were closely monitored an4 necessary actions taken to meet them by the due dates. I! -17- .. 3. LN &N a. The project objectiLves hould bo kept in mind during all phaes of lts lmplementation and should not be devlated. b. Tue prject sites should be free from all encumbrances an any onershlp or other dliputes be settled before comencement of the exeutlon of the project. C. Designs of civLi works should be ldependently audited to ensure offlcileny and cost effectiveness. d. Coordination with all concered agencies be maintained before and during implementation of the projowt for enuring compliance with the required standards and spclfications and to prevent damaging of existing utility llnes during execution. o. The key to successful completion of civil works is the contractor. He should be capable, competent and resourceful. Due car be taken during prequallflation or post qualification to choose suitable contractors. f. The world Bank guidelines and procedures coverlng all aspects of lproject lmplementatlon be properly followed and a close and constant coordination malntained with the Bank. PROJECT CompLffnON REPORT SANA A URBAN DEVELMENT PROJECT CQOMPLETIN REPORT (CREOIT 1202-YARI PART 111:S STCAL INFORIITiO1 1. Related IDA Credits Year of Credit Title Purpose Approval Status Comments Cr. 1441-YAR 0Strengthen efforts to provide 1984 Closed Physical works 2nd Urban affordable infrastructure to low- 03/92 implementation Development Income people in Hodeidah completed successfuly. through introduction of suitable Poor performance of the standards. consultants caused olnstitutional strengthening of further delay to cost Hodeidah Office of MHUP. recovery and resouwce eComprehensive resource mobilization. mobilization study to finance urban projects. OTraining and preparation for future projects. Cr. 2160-YEM eProvide city of Talz with 1990 Ongoing Project is a!most fuly Takz Flood Disaster essential floel control works. cormitted. Continuous Prevention & sImplementing a project cost delays In staffina key Municipal recovery mecharism at municipal positions. Resource Development level. mobilization study Is *Strengthening MHUPs short of requirements. institutional capabilities. Cr. 2258-ROY eHelp meet immediate retumee- 199' Ongoing Site locations has been Emergency Recovery induced needs for housing determined. Plot Credit Housing Sites facilities by providing 2,500 allocations and Component serviced sites. procurement works are progressing. Source: ECA/MENA Information Center 2. Prolect Timetal2 Planned Revised Actual htem Date Date Date IdentIfication 03/79 03/79 J3/79 Preparation 04/80 08/79"' 07179 02/80"' 05/80"'2 12/80"m 02/811" Pe-appraisal 07/80 10179 06/80 09/80 04/81 04/81 Appraisal 09/80 01/80 08/80 12180 06/81 06/81 Credit Negotiations 11/81 12/81 8oard Presentation/Approval 08/80 04/81 12/81 01/82 Credit Signure 02/82 Credit Effectiveness 06/82 Credit aosing 12187 12/88 12/89 12/90 12/91 06/92 06/92 Source: Project Files omm: (1) The Government of YAR expressed urgency for accelerating schedule. (2) Missions to 3view progress of project preparation. -20- (US$ nIllion) AppaiSal Estimate Actual Ending . Disbursed Cumulative Pecenmag Disbursed Cumulatve Pecenta 06182 0.00 0.00 0.0 0.00 0.00 0.0 12/82 0.00 0.00 0.0 0.76 0.76 5.1 06/83 1.7201 1.72 11.4 0.15 0.91 6.1 12/83 1.30 3.02 20.1 0.78 1.69 11.4 06/84 1.92 9.94 32.9 0.86 2.55 17.2 12/84 2.90 7.84 52.2 1.57 4.12 27.8 06/85 2.66 10.51 70.0 1.20 5.32 35.9 12/85 1.60 12.10 80.6 0.83 6.15 41.5 06/88 1.15 13.26 88.3 0.87 7.02 47.3 12/86 1.09 14.33 98.5 0.41 7.43 50.1 06/87 0.67 1 .00 100.0 0.46 7.89 53.2 12187 0.12 8.01 54.0 06/88 1.56 9.57 64.5 12188. 0.06 9.63 64.9 06/89 0.00 9.63 64.9 12/89 0.35 9.98 67.3 08/90 1.49 11.47 77.3 12/90 0.00 11.47 77.3 08/91 0.59 12.06 81.3 12/91 1.66 13.72 92.5 06/92 0.99 14.71" 99.2 12/92 0.38 14.83 100.0 Souc: Project Files CDommentb* (1) Indudes PPF and Fin Dsign (2) SOR 0.26 niiUon woe canceld frm CraDt As Of 11/27/92 tot value disbured was SOR 12.54 mnkU. Sans a Lk-ban Development CCR 1202-YAR) 14 14 I~~~~~~~~ A 6S1 ~~~~~~0 tol ° 4 to ... -21- 4. Bui,m Imalamon Appraisal dioer Estmate Actual 1. IDIiALWQ wlC3 aQ iJilXh and Sawad Sawa - Completion of bidding document 03'82 05/82 - Compltion of tener procedures 10/82 04183 - Commencement of construction 11182 05/83 - Completion of consuction 03/85 01/88 U.a - Compltion of idding documents 03182 0484 - Completion of tender procedus 11183 07/84 - Commencement of construction 12/83 12/86 - Completion of constuction 03185 09/87 MU. - Commencement of loan applications, Musayk 06184 (1) - Completion of disburemnt. Museyk 12/85 41) - Commencement of loan applications, Sawad Sawan 04/85 02/88 - Completion of disbursement. Sawad Sawan 01/87 07/91 IV. S ius - Commencement of land reoistation study 12186 01/87 - Competion of lend registration study 08/88 06/89 - Convnencement of feasibility study (Urban n) 09/83 05/83 - Completion of feasibility study (urban U) 08/84 10/84 V. SegMln f aBInaiciaries and CMsReovery Setting Selection Committae 09/84 04/85 - Identification of beneficares, Musayk 07182-12183 11184 - Selection of bnaficiaries, Sawad Sawan 10184 05/88 - Stat cost recovery, Musayk 06/84 03/87 - Stat cost recovry, Sawed Sawan 06/85 02f88 Source: Projet Files Commnts: (1) No loans were issued for upgrading at Musayk. -22- 5. Status of Covenants Deadline for Covenant Subject Compliance status CA 2.04 Closing Date shall be December 31, 1987. Extended to June 30, 1992. CA 3.01(b) Borrower to enter into SLA with HCB for 03/82 Met Part B. CA 3.05 Borrower to establish PU In Dept. of Met Housing of MHUP; appoint/retain project manager. CA 3.06(a) Borrower to apply satisfactory beneficiary Met selection criteria for Sawad Sawan site. CA 3.06(b) Borrower to establish staff selection 09/84 Met committee for selecting project beneficiaries. CA 3.07 Borrower to establish satisfactory 12/82 Met accounting for separate project accounts in MHUP. CA 3.07 Borrower to establish satisfactory 12/83 Met accounting for project accounts in HCB. CA 3.08 Borrower to ensure appropriate pricing and Met cost recovery principles. CA 4.01(b) Borrower to cause HCB to retain records of expenditures for one year after closing. CA Borrower to cause MHUP to have FY 08/89 Met through FY92. 4.02(i)(ii) project accounts audited, furnished to IDA within 8 months. CA 4.03(SL) Borrower to extend Sanaea solid waste 12/82 Met services to Musayk. CA 4.04 Borrower to ensure that sale of plots Met developed under A(i)(ii) shall be made under terms and conditions satisfactory to IDA. CA 4.05 Borrower to promptly implement the land Started, but is subject to delays. registration policy procedures under A(iv) satisfactory to IDA. CA 4.07(a) Borrower to establish in Central Bank of 01/84 Met Yernen a revolving fund for receipts of beneficiary payments and salea. CA 4.07(b) Borrower to use proceeds of revolving Started fund solely for financing further urban development scheme. -23- Status of Covenants (continued) Deadline for Covenant Subject Compliance Status CA 4.08 Borrower to consult with IDA prior to implementing Partially met management & organizatonal reforms in HCO based on recommendation of experts. CA 4.09(a) Borrower to enter into appropriate agreements 05/82 Met in 11/81 with NWASA & YGEC re water & sewerage, and household electricity respectively. CA 4.09(b) Borrower to enter into satisfactory agreement with 05/82 Met in 11/81 NWASA re collection of charges under A(l) & Iii). SL 3.06 Appointment of Project Manager. 05/81 Met in 05/81 Appointment of Chief Engineer. 03/82 Met in 03/82 Appointment of Implementation Engineer. 03/82 Met in 07/83 Appointment of Financial Analyst. 03/82 Met in 03/82 Appointment of Socio-Economist. 03/82 Met in 01/83 Appointment of Communications Expert. 06/82 Met in 01/83 Appointment of Land Registration Advisor. 07/82 Met in 06/86 Appointment of Building Construction Specialist 01/83 Met in 01/83 Appointment of Housing Finance Advisor. 07/83 Met in 01/86 SL 3.08 Borrower to implement cost recovery according to 12/81 Met with restrictions due to pricing policy acceptable to IDA. inability to connect to sewerage system. MN 3.05 Project Unit to submit to IDA a semi-annual 12/89 Compiled with through 12/91 progress reports. Source: Project Files -24- 6. Anorasal and Actual C=s Item Appraisal Estimate Actua Cosa (all values are In miion unws) yRts use vats'' usMO A.lnfra_tructum Unoradino A Rin and S 1. Musayk Upgrading 18.03 4.00 34.05 5.72 2. Sawad Sawan Sites & ServIces 17.26 3.84 19.99 3.36 B.t Shelter & lgouslane Schm 1. Demonstraon Houses 9.27 2.06 13.80 2.32 2. Bulding Construction Expet 1.12 0.25 0.63 0.11 3. Credit Facilities 22.50 5.00 38.86 6.53 4. Housing Fmance Expert 1.19 0.26 0.15 0.03 C. Insfltutional DevloMWz= 1. Land Roegiraon 1.67 0.37 3.20 0.54 2. Project Management & Execution 9.36 2.08 8.91 1.50 3. Traning & Prepaation of fuure 2.86 0.63 3.95 0.63 prolects Q. Proiec Prearaio 1. PP & Fia Design 4.06 0.90 3.96 0.66 E Proiect Administration & Eauhment 2.88 0.65 40.69 6.84 Total Base Cost 90.19 20.04 159.74 28.23 Contngencies 26.81 5.96 28.32 4.76 Total Project Cost 117.00 26.00 196.30 32.99 Source: Project Files. Urban Development Projects Unit Accowuns (MHUP). Note: Numbers might not add up exactly due to rounding off. (1) UDPU accomunts supplied (2) Based on an average oxche rate over life of project of US 0.16806/YRi. -25- 7. Appraisal gnd Actual Projegt Finganino (US$ million) Planned Revised Credit Credit Source Agreement"' % Agreement'2' % Final3 % 1A- Demonstration Houses 0.84 40 0.80 40 0.89 40 16- Other Civil Works 4.31 50 6.02 50 4.80 50 2 - Equipment & Materials'4' 0.42 100 3.49 100 3.18 100 3 - Construction Loans 2.34 50 2.57 60 2.27 60 4 - Consultants' Services 3.50 100 3.47 100 2.58 100 5 - Refunding Project Preparation Advances 0.46 100 0.46 100 0.38 100 6 - Un-allocated 2.25 0.13 0.04 Cancellations 0.00 0.35 0.35 Total IDA 14JJ.Z169 14.12 Domestic 11.4 188 Total 23 Source: Project files, Urban Development Projects Units's accounts (MHUP) Notes: Numbers might not add up exacty due rounding off. Values in USS were obtained from Credit Agreement Schedule 1 by converting the SDR value using the equivalent disbursement fate. (1) 1982 equivalent disbursement rate US$ 1.103/SDR. 12) 1991 equivalent disbursement rate US$ 1.3521SDR. (3) SDR and US8 as supplied by disbursement records. 14) Savings in Credit were used to purchase equipment, approximately US$ 3 million. -26- 8. MiAsign Daa Type of Mission MonIYr 0 of Persons Days in Field Performance Rating Types of Problems A- Ug IQ A1Rrais Identification 03/79 6 16 Not Applicable Di3cussionsi"l 04/79 1 19 Not Applicable Discussions"' 06/79 1 8 Not Applicable Preparation I 07/79 1 4 Not Applicable Preparation If 01/80 2 8 Not Applicable Discussions"'r 02/80 1 22 Not Applicable Preparation Ill 05/80 2 6 Not Applicable Discussions"' 05180 1 17 Not Applcable Discussions"' 06/80 1 7 Not Applicable Discussions'l' 09/80 1 16 Not Applicable Preparation IV 12180 3 13 Not Applicable Pre-appraisal 04/81 3 i6 Not Applicable B- Appraisal to Board Agoroval Appraisal 06/81 4 15 Not Applicable Pre-egotiation 11/81 2 11 Not Applicable Discussions"' 02/82 1 11 Not Applicable Final Desgn Review 02/82 1 3 Not Applicable C- Board Anproval to Effectiveness =- Sutmervision Supervision 1 05/82 3 10 1 Supervision l11 12182 2 8 1 Supervision III 05183 1 4 1 Supervision IV 10/83 2 11 1 Supervision V 02/84 2 3 1 Supervision VI 08/84 2 12 1 Supervision Vill 10184 1 8 1 Country Review 02185 1 16 Not Applicable Supervision Vill't 05/85 2 10 1/2 Managerial Supervision IX 10/85 2 11 2 Managerial Supervision X 01/86 2 12 2 Managerial Supervision Xl(' 06/86 1 8 2 Managerial Supervision XilI" 10/86 2 12 2 Managerial Supervision XJIII" 02/87 1 9 2 Managerial Supervision XIV"' 10/87 3 13 2 Managerial Supervision XV"' 02/88 2 10 2 Managerial Supervision XVI 01/89 2 14 2 Managerial Supervision XVII" 10/89 2 10 2 Managerial Supervision XVIU 01/90 1 10 2 Managerial Supervision XIX' 11/90 1 15 2 Managerial Supervision XX' 06/91 2 30"' 2 Managerial Supervision XXI"Z 11/91 1 16 2 Managerial Supervision/Completionr' 02192 3 16 2 Managerial Source: Project Files Note: The main managerial problems were due to coordination difficultes and clear line of authority at MMH, lengthy bureaucratic procedures and the reluctance of some project entities to enforce instutional reforms envisaged at appraisal. (1) Included Discussions on other sectors (2) Included work on other projects in Urban Sector (3) Ramadan Holidays coincided with mission 9 . Roottomi. fOto of natnure o2toona At o. 1 2 2 4 S 6 7 a 9 10 t1 12 12 roar 1te2 1s8s 1904 1965 lse6 1967 1ts6 1969 1990 1991 1992 19J 1994 Project Costs (1000 Val the cost str-one extend to 20 Feoro. Lead (1) 06,750 site development oost (2) 10,016 18,016 16,016 Orno boeuoo (6) 6,901 4,901 Adel expenson (6) 1,040 800 1,140 1,140 440 484 522 5B6 644 709 779 Lanoal operatione (2) 20 S0 1,660 1,646 2,02s 2,226 2,460 2,706 2,016 2,702 2,702 PrJecat preporetion (64 3,945 total cost streoa 9S,725 10,666 19,106 19,226 9,021 9,2SS 2,S65 2,022 2,104 2,414 2,156 2,702 2,702 Prjoot sonofit- (1000 Ta) the benefit *trensD extend to 30 years. Avoraqo X0cthly RaottUonscbold (Tm) (4) 300 400 450 S00 S50 600 650 725 900 1060 1200 1200 1200 Rental value(S) 11,660 15,640 17,820 19,600 21,04S 34,140 37,625 41,970 52,110 57,900 69,400 69,400 69,400 sele price. of demo and cosorcial plots 171e49 1,000 total bonefit &treoa 11,600 15,840 17,620 19,600 S1,845 S4,740 s5,404 42,976 S2,110 57,900 69,460 69,400 89,480 net bDeefit (loe0 (1000 TR) (01,855) (2,026) (1i,66) S64 22,024 2S,S07 52,919 40,156 49,006 54,406 S,724 66,770 66,770 0D1 Doflator (6) 61 74 76 64 100 112 12S 122 122 166 170 170 17e Roal met benefit close) (1000 Tl) (129.929) (4,009) (1,7971 671 22,624 22,572 42,022 22,647 26,047 22,023 26,924 37,516 27,516 sta a-,G Vote., (1) Lond cost at market price, uasayks *ai l00/n2# ateed Sewens 13l 7S?a2. (2) Includes site preparation, eon-ito infreotroetare, share of off-afte infraatrtetare allocable to the oite. (2) rigareo apto 1991 were aeppliod by USUP. Oabsequont year. are projected at S of the infreatrectero e st. (4) Setimatoe of average monthly rent for hoaeeholds An those two areoa by 5301 staff, february 1992. (5) Sxcladeo increaaod rental values La spill-off areas. (63 &oeaos& d-feltor remoinso onstant after 1992 -28- 1 0.A Profile of Beneficiadres Sawad Sawan: 1. Total number of beneficiaries are 1525 families. 2. Breakdown of beneficiaries ay household average monthly income: Average-Monthly Incgme 4YR) Number of beneficiaries 999 or less 3 1000- 1500 416 1501 - 2000 469 2001 - 2500 484 2501 - 3000 133 3001 and over 20 3. Breakdown of beneficiaries by number of persons per household: Number of gersons ner household Number of beneficiaries Perea= 10 37 1.5 9 29 2 8 346 12 7 184 10 B 250 22 6 284 25 4 14 17 3 121 6 2 121 2.5 1 9 2 4. All plots have been allotted. 229 Plots have no houses on theem yet. Source: Telex form MHUP dated September 8, 1992. -29- 10.8 Profile of Beneficiaries Muszh: 1. Total nunber of beneficiaries are 3300 households. 2. Breakdown of benefticiaries by household average monthly income: Averaae Monthly Inggme IYR) Number of beneficiaries 500 - 1500 927 1501 - 2500 1367 2501 - 3500 643 3501 - 4500 190 4501 - 6500 117 5501 - 6500 9 6501 - 8000 47 3. Breakdown of beneficiaries by number of persons per household: Number of nersons nRr household Numiner of beneficiaries Perentaae 10 82 1.5 9 50 2 8 330 12 7 660 10 6 398 22 5 759 25 4 495 17 3 363 6 2 132 2.6 1 33 2 Source: Telex form MHUP dated September 8, 1992. IBRD 16031F . _ ._ __ _ . . ARA8\ \ AR REPUBLIC OF YEMEN REly Tv SAD ARAI SANA'A URBAN DEVELOPMENT PROJECT m\SAUOI ARABIA LOCATION OF PROJECT SITES SUDAN 0~~~ ~~~~~~ ~~~ K THIOPIA. Areas developed undet prolect To Aii'poff KENYA Reserved project area for sites ond services :71 Built-up Areo - Moior Poved Roods /- \ - __ -- - toposed Poved Roods (Non-prolect) SAWAN Unpoved Trocks SITES AND . . { . ~~~~~~~~SERVICES : 4 METERS i . .. . 0 Soo 1000~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~~~MGST19 ° 1000 p2C60tt 360tt 4000 f-sg/ Ring RoOOl . .- eXPTt~~~~~~~~~~~~~~~~~~ Va amp hu bwan* jimo_A, by lb,* ,,t axW . in off fh the @ cn=m*dw on Rin moeci am, v~m ¢d~ ~~~~~~~~~~~~~~~~~~~~AG IMt IBD 16032R. \S°t°s4w-91-\- s ¢6oomm~~~~c # SANA'A URBAN DEVELOPMENT PROJECT S xAU ARAAw 7\n8 ||t MUZAIK UPGRADING INFRASTRUCTURE ^ tt _ot t ffi o t 2E ~~~~~~ ~ ~ ~ ~~IMPROEMENTSX z~~~~~~~~~~~~~~~~~~~~p1 &-am LI M ET.,um C e ; e l - 3 | Z fa X 0 ~~~~~~~~~~P" mwso ot l at'?~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~tata IBRD1 033J REPUBLIC OF YEMEN SANA'A URBAN DEVELOPMENT PROJECT SAWAD SAWAN SITE LAYOUT AND OFFSITE INFRASTRUCTURE NETWORK DEVELOPED UNDER PROJECT: Site Boundory Primary Roads LCI=] Porks Secondary Roods E~U1 School Areos - Access by footpoth and / S7l Mosque Area unpaved road Commerciol Areo - - Sewerage Line Demonstrotion Houses Power Line rO Wodi So///o - L I Service Plots l Power Sub-stotion I% I 300mm1W - Water Supply Line 0 Ground Reservoir --Drainage Lines EXISTING: ff1ff Settlements Unpaved Trock Sub- staio Hamdi > . .... ... I .... 111 - . 1.. . .. .....il ... i f~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~O sW. .e of .h Wod l ee k North Eost I I Ve Sub-sto tion o 00 20 0 40 MEER Arn j I I I 0 500 1000 1500 FEET | L rbo |0 50EYAtj "' A.s -O-'m' St