Z- A 3 -, 3 / - yy Document of The World Bank FOR OMICIAL USE ONLY E- ~ E-- Z Report No. P-5919-SEY 8- _ >- Lr !> . M zEMORADUM ANDIRECOEAON TO THE 2: t X C c RPREBSIDENT OF THE _ Z o ; iDo INTERNATIONAL BANK FOR RECCNSTR1JCTION AND DEVELOPNENT ¢.+ 5 X T~~~~~OR THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN OF US$4.5 MILLION TOD THE REPUBLIC OF SEYCHELLES FOR THE ENVIRONMENT AND TRANSPORT PROJECT DECEMBER 2, 1992 Infrastructure Operations Division South-Central and Indian Ocean Department Africa Region 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. CURRENCY EQUIVALENTS Currency Seychelles Rupee (SR) Exchange Rate $1.00 = SR 5.0 $0.20 SR 1 WEIGHTS AND MEASURES Mgl USIUK 1 ha 2.47 acres 1 km 0.62 miles 1 mm 0.039 inch 1 km2 0.386 square mile 1 kg 2.2 pounds 1 metric ton 2,205 pounds 1 m3 1.307 cubic yards ABBREVIATIONS AND ACRONYMS DCA Directorate of Civil Aviation EC European Community EMPS Environmental Management Plan of Seychelles GDP Gross Domestic Product GEF Global Environment Facility GET Global Enviromnent Trust Fund GNP Gross Natural Product IDF Institutional Development Fund LTD Land Transport Division, Ministry of Tourism and Transport MEPER Ministry of Environment, Economic Planning, and Extern Relations ODA Official Development Assistance PIP Public Investment Program PMSD Ports and Mariae Services Division, Ministry of Tourism and Transport PUC Public Utilities Corporation SFA Seychelles Fishing Authority SIF Seychelles Island Foundation SMB Seychelles Marketing Board A SOE Stateowned ente.-prises UNDP United Nations Development Program UNEP United Nations Environment Program UNESCO United Nations Educational, Scientific, and Cultural Organization GOVERNMENT OF SEYCHELLES FISCAL YEAR January 1 - December 31 FOR OFFCIAL USE ONLY SEYCHELLES ENVIRONMENT AND TRANSPORT PROJECT LOAN AND PROJECT SUMMARY Borrower: Republic of Seychelles Benelaries: Ministry of Environment, Economic Planning, and Extenal Relations (MEPER); Seychelles Island Foundation (SIF); Land Trusport Division (LTD); Public Utilities Corporation (PUC); Directorate of Civil Aviation (DCA); Ports and Marine Services Divhision (PMSD); Seychelles Fishing Authority (SFA) Amount: US$4.5 million. Terms: Standard variable interest rate and maturity of 15 years, including a grace period of 5 years. On-lending Terns: Interest rate of 8 percent for 13 years, including 3 years of grace. Co-Fnncing: Global Environment Trust Fund (GET) Grant FinacingPlan: (UJSS million'l IBRD Loan 0.7 3.8 4.5 GET Grant 0.6 1.2 1.8 Government 0.7 - 0.7 TOTAL 2.0 5.0 7.0 EconomIc Rate of Return: 22 percent for 38 percent of project costs. Staff Appraisal Report: Seychelles: E vironment and Transport Project (Report No. 11259-SEY). Maps: IBRD No. 23524: Praslin Improvement Program IBRD No. 23521: GEF Investment: Biodiversity Protection IBRD No. 23522: GEF Investment Abatement of Marine Pollution This document has a restricted distribution and may be used by recipients only in the perd-a:-,cc of their official duties. Its contents may not otherwise be disclosed without World Bank al4horiaton. MEMORANDUM AND RECOMdEDATION OF THE PRESDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO TIRE EXECUTVE DIRECWORS ON A PROPOSED LOAN TO THE REPUBLIC OF SEYCELLES FOR AN ENVIRONMENT AXD TRANSPORT PROJECT 1. I submit for your approval the following report and recommendation on a proposed development loan to the Republic of Seychelles for US$4.5 million to help finance an Environment and Traport project. The loan would be at the Bank's standard variable interest rate, with a maturity of 15 years including five years of grace. An amount of US$170,000 of the proceeds of the loan would be onlent to the Public Utilities Corporation for 13 years, including tree years of grace, at an interest rate of 8 percent. Additional grant financing would be provided by the Global Environment Trust Fund (GET). The Vice President, Africa Region, has approved the GET Grant. Part I of the present document describes the country's policies and the Bank's assistance strategy. Part II describes the loan, the rationale for Bank involvement, project objectives, agreements reached, and the risks of the operation. PART I - COUNTRY POIUCIES AND BANK GROUP ASSIANCE TATEGY I, Historical Perspective and Recent Economic Performance. 2. 3ackgriund. Seychelles is an archipelago of some 115 islands in the western Indian Ocean, having a total land area of about 445 square km (sq. kin) but claiming an exclusive economic zone of about 1.3 million sq. km. Some 40 granitic islands with a tot area of 235 sq. km form a relatively compact group within 50 km from Mahe, the main island, some 1600 km east of Kenya and 900 km north-east of Madagascar. The outlying islands are predominandy coralline and spread over a considerably wider area. An essential feature of the islands is their unique ecology, pristine enviromment and touristic attraction. The largest of the secondary islands, Aldabra, is one of the last refuges of the giant land tortoise. Seychelles' population of about 70,000 is concentrated on the main island of Mahe and two others nearby; its growth rate is about 0.9%, reflecting a relatively low birth rate and, until recendy, considerable net emigration. ITe minuscule size of the economy and its reliance on extern markets explain why the country's economy is heavily influenced by international economic conditions and is extremely fragile. Since independence in 1976, Seychelles has experienced rapid and reasonably equitable economic growth. GNP per capita has risen from US$870 in 1976 to US$5,160 in 1991. 3. Seychelles' main economic activities are tourism and fishing, along with some agriculure and small-scale manufcurng. The development of tourism since the early 1970s and of port services for foreign tuna fishing fleets sinc the early 1980s have raised incomes and living standards, while diminishing the role o. traditional plantation agriculture and arisanal fishing. The country's tropical climate and unique environment attract mid- and upscale tourists. Almost 104,000 visitors arrived in 1990 compared to 37,000 in 1976, an average growth rate of 2 7.5% per annum. In 1990, tourism generated about 17% of GDP, 60% of the exports of goods and services, and 19% of formal employment; up to 80% of the visitors are from European countries. Fishing, the second most Important foreign exchange earner, lagged far behind, accounting for only 1% of GDP and about 8% of the exports of goods and services. Industrial and agricultural activities have been severely constrained by the small size of the domestic market, the limited factor availability (skilled labor, land, water, natural resources) and the remoteness of the islands. 4. The country became an independent republic in 1976 under a coalition government. In 1977, a coup d'Etat established a one-party socialist State. In December 1991, President France Albert Rene announced a shift to political pluralism. In early 1992, the government lifted the longstanding state of siege and in July multi-party elections were held for a constituent assembly to prepare a new constitution. The referendum on the new constitution, which took place on November 15, 1992, obtained less than the 60 percent of the popular vote required to adopt the constitution. As a result, presidential and legislative elections, initially planned for December, have been postponed untl a revised draft of the constitution Is prepared and put to another referendum. S. EconomicPolicigs. Untilrecently,Seychelles'strongdevelopmentperformance relied on economic policies emphasizing public secor-led development, centrally-managed response to changes in the international environment, a successful drive to mobilize important eternal savings, and social equity. Most of the economy - with the exception of the banking sector - is publicly-owned and managed, including the most modern part of the key tourism sector. The public sector employs two-thirds of Seychelles' labor force; the government's budget amounts to about half of GDP; and government consumption is about 30% of GDP. Until recently, trade and price controls were pervasive. The exchange rate is pegged to the SDR; the effective real exchange rate (trading partners weighted) has appreciated by about 30% between 1980 and 1992. The wage structure is dominated by public sector wages, which promote even income distribution rather than incentives and efficiency. The production and distribution of public services and goods (including housing) emphasizes equity, rather then efficiency or cost- reovery. Public investment, to date, has been concentrated in social and physical infrastructure, tourism infastructure, and other production and export activities. Seychelles has received generous amounts of external assistance: net official development assistance (ODA) transfers per capita per an averaged US$223 in 1975-79, US$295 in 198S85, and US$331 in 1986-90. 6. IThe success of public sector-led development in Seychelles, in contrast with the general experience elsewhere, can be attibuted to the unusually small size of the country, which allows close monitoring and frequent adjustments; an effective public administration and good governance; high per capita levels of external assistance; and the counry's unique natural environment, which has helped it attract upscale tourism. However, these development model's limits have become increasingly manifest. Since end-1991, in response to the adverse impact of the external environment and in parallel with the political opening referred to above, the Government has been moving towards more liberal economic policies, with State retcbment. from the production of tradeables, increased emphasis on private investment, and more selective public investment. 7. Performance during 1976-90. Between the mid-1970s and 1990, Seychelles' economy expanded rapidly driven by tourism and relatively abundant extet 1 financing, albeit with some pauses reflecfing external shocks. Real GDP growth averaed 10.5% per nmum during 1975-79, under the impetus of generally favorable world economic conditions. Growth 3 slowed to 1.4% per annum during 1980-85. GDP declined by 10% in 1980-83, underscoring the vulnerability of the economy to external shocks (higher petroleum prices and airfares in the late 1970s) and to adverse tourist reaction following an aborted coup attempt in 1981. The Government responded to the downturn by progressively increasing its intervention in the economy through investment in a relatively large number of newly-created state-owned enterprises (SOEs) and by resorting to external borrowing to stimulate domestic demand. Because of its relatively high per capita income, Seychelles had to rely more on commercial borrowing at a time when interest rates and repayment terms were hardening, and its external debt service ratio to the exports of goods and services (excluding re-exports) exceeded 13% in 1986-87. Although not high compared with other countries, this ratio was worrisome because of the economy's small size and fragility, its dependency on volatile exports, and its high import content. The country succeeded in arresting the economic decline and restoring growth by 1985, lthough pump- priming of the economy resulted in higher budget deficits (16% of GDP in 1986), a surge in money supply, higher inflation, and a more difficult balance of payments situation with foreign exchange shortages. Tablc I - Selected Economic IndicaLor (arcent) 1975--9 198085 1986-90 Average Annual GDP gvowth p/ 10.5 1.4 7.2 -2.9 Averag Export growth (ONFS) e 12.2 4.8 17.2 -11.0 impo gs wth (G?WS) A1 17.1 6.2 11.9 6.6 Curmat Aouxt BalceGDP -17.2 -23.4 -7.6 -6.3 Debt SeMc Ratia -e Exports &s 0.1 2.8 11.1 9.6 to Net Exportsg .. .. 12.6 10.8 Budget Deficit/GDP I 0.5 -11.1 -6.1 -2.5 # Ban aggOQgats in 1986 constat ries. k/ Excluding re-exports and bunker sales. j/ Overll deficit, including grants. Sou: overnmt of Seychelles 1MF, Aticle and Recent E CoiC 2n%ojW M 8. Renewed rapid growth between 198690 (7.2% per annum on average) reached a high point in 1990, by which time the financial situation had also stabilized. In 1990, real GDP grew by 7.5%, owing to a single year 20% increase in tourism arrivals and a 24% increase in tourism expenditure; the budget deficit of the previous years had turned into a surplus equivalent to 2% of GDP (including official transfers); the external current account deficit (before official transfers) was narrowed to 8% of GDP, despite the subsantial increase in the cost of oil imports following the loss of the Kuwaiti supplies in August 1990 In the aftermath of the Gulf crisis; and inflation, although higher than in preceding years, was kept below 4%. 9. Developments during 1991-92. Owing primarily to developments in the crucial tourism sector, the country's performance slipped sharply in 1991, and has not filly recovered in 1992. In 1991, tourist arrivals and expendiure fell by 13% and 19%, respectively, due 4 largely to the Gulf War, and have not yet returned to the 1990 peak levels. Tourist arrivals during the first seven months of 1992 were 7% lower than during the same period of 1990, and bed-night occupancy rates durmg the first semester were 10% lower in 1992 than in 1990. This has tempered the Government's expectations for sustained growth of this key sector and has caused it to reassess carefully its State-led development strategy and its public investment priorities. The slow rebound of the critical tourism sector reflects, in part, insufficient effort to rehabilitate and upgrade hotel infrastructure and diversify tourist services, and the vulnerability of Seychelles' tourism industry to economic conditions in industrialized countries, notably Europe. 10. Tle recent decline in tourism has hurt the economy. Real GDP is estimated to have contracted by 2.9% in 1991 - the first such decline since the early 1980s - and growth in 1992 will fall short of the 4% target set at the beginning of the year. The Government has taken steps to contain the impact of slower growth on public finances, through revenue-raising measures (particularly temporary import surcharges and tax increases on alcohol and tobacco) and measures to reduce expenditure, including capital spending. The budget deficit was equivalent to 2.5 % of GDP in 1991 and is projected at 1.3% of GDP for 1992, well below the deficits recorded during the 1980-90 period. Balance of payments difficulties in 1991 led to a temporary requirement for the surrender of 30% of the gross foreign exchange earnings by exporters to the Central Bank; this requirement has been recently eased to 20%, and the remaining restriction should be lifted by end-1992. Import controls and some administrative payment delays helped reduce the current account deficit from 8% of GDP in 1990 to 6.3% in 1991. However, as imports caught up with demand, this deficit is expected to rise to 9.4% of GDP in 1992. The debt service ratio was 11% of the exports of goods and services (excluding re-exports) in 1991, and the debt-to-GDP ratio was 54%. 11. Social develgoments. Seychelles' Government has given high priority to the welfare of the population, and economic growth has been accompanied by significant progress in social conditions. Seychelles has low unemployment and actually faces a shortage of skilled labor. Social indicators are comparable to those of higher income countries (Table 2). Social policies have sought to minimze income disparities and guarantee equal access to education, health and housing: 75% of the children 6 to 14 are in school; there are 6.2 hospital beds per 1,000 inhabitants and one physician for 1,403 people; 99% of the population has access to basic health care; life expectancy at birth is almost 71 years; infant mortality is 17 per thousand; almost all children under one year of age are immunized against the most common childhood diseases; and the entire urban population and 95% of the rural population have access to safe water. The Govermnent's social spending policies - including sabsidized housing favoring lower-income and large families - have helped reduce welfare disparities. 12. Seychelles has legislated and practiced gender equality. Women enjoy equal access to education and jobs, including management positions and official appointments. In 1990, women represented 43% of the active labor force. 5 Table 2 - Selected Social Indicators Q2MRMntiXg_ Data Seychelles Average Same Averag Higher Income Grup a/ Income Group b/ Cude Birth Raft (per 1,000 inhabitants) 24.1 24.9 13.0 Crude Death Rate (per 1,000 inabits) 6.9 7.5 8.8 Population Growth Rate (%) 0.9 1.7 0.5 Indan Motalt (per 1,000 live births) 17.1 41.8 8.0 Life Expacy at Birth (years) 70.7 68.3 76.7 Access to health came (%) 99.0 Immuniztion children under one (%) DPT 96.0 81.5 82.7 Meae 92.0 78.5 73.8 Polio 96.0 Females as of Labor Force (%) 43.0 23.3 35.8 Pupil-Teacher Ratio Primary Schools 19.0 25.0 19.0 a- Countries with a GNP per capita of USS2,466-7,619 in 1990. b/ Countries with a GNP per capita of US$7,620 or more in 1990. Sources: Governmue of Seycholles (1990 Statistical Abstract) World Bank (Social Indicators of Doveloruent 1991_92) H. The External Environment 13. Seychelles' economy is minuscule and highly dependent on tourism and trade. Exports and imports of goods and services averaged, respectively, 65% and 75% of GDP over the last five years. The country's limited resource base and small size restricts the scope for economic diversification. In the foreseeable future, and despite efforts to diversify into fishing, fish processing, agriculture, light manufacturing, and regional trans-shipment and off-shore services, Seychelles' economy will remain dependent on tourism. The small land area, the fragile environment, and manpower limitations will likely continue to determine a tourism marketng strategy aimed primarily at 'eco-tourists", i.e., middle-to-upper-scale tourists willing and able to pay above-average airfares and land fees, in order to enjoy the pristine environment, unique natural beauty, and peaceful atmosphere of the archipelago. So far, Seychelles has been successful in attracting such tourists. 14. At the same time, however, as the outcome of 1991-92 demonstrates, the tourism business is highly volatile. The slowdown of economic activity in Europe - Seychelles' main tourist market - and, for a time, heightened tensions in the Gulf followed by war, have demonstrated the vulnerability of Seychelles' economy and the difficulty of recovering lost tourist markets. The Government's recent emphasis on environmental protection, human resource 6 development, and increased private sector involvement is intended to maintain the country's unique tourist image, enhance the quality of tourist services, and make best use of a special niche in the tourism market in order to Improve the country's economic prospects. In this context, the Bank's assistance strategy has been designed to help Seychelles put in place po!icies and programs that would allow the economy to weather more effectively the impact of the external environment. More specifically, as explained in para 23, the Bank's strategy emphasizes the preservation of the environment, human resource development, appropriate public investment policies, incentives to private sector development, and provision of essential public services needed to support tourism development. Such a strategy would help maintain the external competitiveness of the tourism sector, increase the scope for tourism activities, and encourage economic diversification. IS. Seychelles has so far maintained good external creditworthiness. The countryhas respected its debt service obligations without resorting to formal debt rescheduling or exceptional balance of payments assistance. Its debt service ratio was under 14% of the exports of goods and services th:ouglh 1989, and below 10-11% in 1990-91. The Government is aware of the need to maintain the country's good extemal record, and it has taken steps to eliminate lower-priority public investments, screen even more systematically new investments, reduce the role of the State and encourage private investment, reduce the fiscal deficit, and increase the level of foreign reserves. The Government has combined prudent fiscal and borrowing policies with the decontrol of some prices and imports and the limited offering for sale of state assets (including hotels and land). lTe Bank will continue to monitor closely developments in this area, particularly through the proposed review of the country's first public investment program (PIP) for 1993-95. m. The Bank's Country Assistance Strategy A. Seychelles' Development Objectives and Policies 16. tructural Issues. Notwithstanding Seychelles' economic performance, developments in 1991-92 have exposed the fragility of the economy and its structural weaknesses. Seychelles' tourism industry is subject to stiff competition in the world market, a shortage of skilled labor, infrastructure bottlenecks, and the danger of upsetting the fragile environment upon which it relies. The diversification of production and exports has been hampered by the narrow resource base and environmental constraints, as well as by exchange rate and trade policies. The appreciation of the exchange rate, while allowing Seychelles to adapt its fagile tourism capacity to upscale visitors, discouraged investment and export diversification. Price and trade controls - -including the de facto monopoly of the Seychelles Marketing Board (SMB) on imports - hampered production and investment. Public investment has been managed on an adho basis, shifting capital expenditure excessively towards social pursuits and commercial activities, such as housing, which could have been handled more efficiently by the private sector. 17. Medium-term Development Strategy. The Government's medium-term development objectives are to improve the quality of life of all Seychellois and achieve environmentally sustainable development. The Government's recent strategic thinking has been centered on: (i) emphasizing "eco-tourism' in order to reconcile environmental constraints and growth objectives; (ii) putting in place policies and programs to help diversify tourist markets; (iii) increasing the productivity of the labor force through skill enhancement; (Jv) pursuing past poverty reduction efforts through social spending policies aimed at lower-income groups; (v) continuing the policy of fiscal moderation through gradual disengagement of the State from the 7 economy; (vi) expanding and accelerating the introduction of Incentives for private investment; (vii) improving public investment management through improved public Investment programming; (viii) improving debt management by seeking most favorable terms, converting floating-rate liabilities into fixed-rate debt, and reviewing debt buy-back or conversion opportunities; and (ix) maximizing public savings and foreign reserves to provide a cushion against future external uncertainties. 18. The preservation of the environment and effective use of hurman resources are Seychelles' main challenges of ustuainable development. The Govermnent is firmly comr4tted to protecting the environment, and prepared in 1990 an Environmental Management Plan of Seychelles (EMPS) covering the period 1990-2000. In 1992, the Government initiated the preparation of a strategy for human resource development, which will be discussed at a Round Table sponsored by UNDP and scheduled for early 1993. 19. Given the common resource feature of some of the environmental Issues, such as marine pollution, Seychelles looks to greater = to provide the framework for addressing the concerns in such a vital area of its development. Seychelles is a member of the Inuian Ocean Commission, which provides a forum for regional cooperation in a number of areas including trade and the protection of the environment. Seychelles is also keen on making best use of teaching institutions in the Indian Ocean countries, for skills development. 20. Mium-em Prsgects and Financial Requirements. The Government intends to formulate a coherent medium-term macroeconomic framework in the context of preparing its fst three-year public investment program, with the support of a Bank grant financed by the Instiutional Development Fund (IDF). A likely scenario could envisage average amnual real growth of about 4% for the period 1993-97, supported by investment amounting to 18-19% of GDP. This level would compare favorably with ratios averaging 24% over 1987-92, reflecting the expected gains from improved public investment management. It is expected the Governent will pursue prudent fiscal policies, limiting the overall deficit to a maximum of 4% of GDP, and financing it In a non-inflationary way. Thus the inflation rate would be held to below 5%. Together with prudent credit policies, the cautious fiscal stance would kwep aggregate demand broadly in line with resource availabilities, with an average current account deficit (before official transfers) in the order of 9% of GDP. This scenario is consistent with the objective of reducing the public investment-GDP ratio from an average of 13% in 1989-92 to around 10% during 1993- 97, and keep the debt service-exports ratio below the 14% maximum observed in the past. With national savings increasing to about 10 percent of GDP (over US$40 million per year) and net direct foreign private investment of about US$10 million per annum on the average, net official external financing requirements for the next five years would be in the range of US$100-150 million, about in line with net ODA flows in the past. These requirements could be essentially covered by disbursements from existing and expected medium- and long-term loans, and grans. B. Bank Group Assistance Strategy 21. Past Bfank Goup Role. Seychelles joined the World Bank in 1980, IFC in 1981, and MIGA in 1992. Given the country's small size and access to commercial lending sources, the Bank Group has had a modest assistance program in Seychelles. Only one loan of US$6.2 million (approved in FY86) has been extended so far, to help finance the Mahi East Coast Development Project, principally for port improvements and the rehabilitation of the road 8 network on the main island. The implementation of the project was satisfactory, and the loan was filly disbursed on time and closed on December 31, 1990. EC extended a loan of US$10.5 million in 1986 to help restructure and complete a hotel, the construction of which had started in 1978. The project was subsequently beset by financial problems, and disbursements were suspended on January 15, 1988. The undisbursed balance (about US$7.5 million) was canceled on March 14, 1990. lTis loan was acquired by the Government of Seychelles in 1991. In May 1992, IFC approved a US$6.3 million loan to help rehabilitate the Paradise .Hotel on Praslin Island. IFC is also considering additional prospects for investing in the rehabilitation and development of existing hotels in Seychelles. So far, no investors have applied for MIGA guarantees. 22. At the Government's request, in 1989 and 1992 the Bank provided technical assistance for macroeconomic modelling. The Bank also assisted Seychelles In the prepaation of the EMPS. In 1991/92, the Bank conducted a Housing and Land Management Sector Study, which reviewed public policies in this area and provided reco'mmendations aimed at increasing the role of private investment and improving the efficiency of public resource utilization. Finally, and at the Government's request, the Bank has recently intensified its dialogue on the medium- term oudook and policies, related to Seychelles' absorptive capacity. The Government has been responsive to the Bank's advice and, as mentioned before, has decided to put in place a multi- year public investment programming capacity, supported by an IDF grant extended by the Bank. 23. Str,and Priorities. The Bank's main objective in Seychelles is to help the country on its path to environmentally sustainable and equitable development by asssting the Government to: (i) preserve the environment; (u) further reduce relative poverty; (ii) develop human resources; (iv) encourage private sector development, including privatizadon of the housing sectr and state-owned enterprises; (v) develop essential infrastrucue, notably water supply and roads; (vi) mobilize external support by continuing to play a catalytic role in aid coordination efforts, particularly through participation in sectoral Round Tables, including assistance for the preparation of the first Round Table on Human Resource Development; and (vii) draw up a satisfactory Public Investment Program (PIP) which the Government inteds to introduce in 1993, and provide policy advice on medium-term development policies and the macroeconomic framework underlying the PIP. These goals would be pursued through lending, policy advice, and aid coordination activities, as detailed below. 24. The proposed Enviromnent Ad Tanort PrjCt is fully consistent with this strategy. The project would support the Government's environmental objectives by helping improve infrastructure n Praslin Island (the second most important tourist destination in Seychelles), strengthening the management of environmental issues, particularly marine resources and overall environmental programs, helping protect the unique environment of the Aldabra ecosystem (including protection of giant land tortoises), and helping control marine pollution at the Port of Victoria. The proposed project would also help improve road safety, now a major source of accidental death in Seychelles. 25. The lendinwrgram for the medium term beyond FY93 would be selective and in keeping with the strategy and priorities outlined in para. 23. More specifically, it would consist of two proposed loans totalling US$15-20 million. The first operation would support an integrated watsupply project on the main island of Mah6. Increased water supply- especially in the southern and western portions of Mahe - is a critical condition for tourism expansion. It would also aim at improving living conditions for local inhabitants who currently do not have access to piped water during the dry months. The second operation would help finace a project 9 to help improve access of low-income groups to hosing, through broader private sector participation and enhanced efficiency of govermnent spending in the sector. 26. The centerpiece of the Bank's ecgonmic and setor work program in the near- term is a Public Investment Review to be carried out in late FY93. The discussion of the first PM? under preparation by the Government would also ffer an opportunity for a broader dialogue on medium-term development policies and investment strategy with the new Govermnent expected to emerge from elections in 1993. A Tourism and Environmental Management Study, scheduled for FY94-95, would assess more fully the environmental costs and benefits of tourism and recommend measures to enhance the beneficial impact of tourism on environmental preservation. 27. Areas of Special Ogerational gmohasis. The Bank's program emphasizes environmental protection, development of key infrastructure, and private investment. As discussed before, environmental protection has been a constant preoccupation both directly through the proposed project, and indirectly in the preparation of water supply investments. The dialogue in the housing and land management sector has focused primarily on an increased role for private investment. Institutional development aspects are being addressed through lending operations and - in the area of public resource management - through an IDF grant. Poverty issues are to be covered by contributing to the Government's human resource sector strategy, keeping in mind the already strong progress made by Seychelles in this area. 28. o_rtion with other Multilateral Institution and other Don. The Bank has played a significant role in formulating and securing financing for the EMPS through the Donors' Conference on the Environment c-sponsored with UNEP and UNDP in 1991. Similarly, the Bank is now assisting the Government to draft a strategy paper for human resource development, and to prepare a Round Table (sponsored by UNDP) in early-1993 to discuss the sategy and mobilize the financing for its implementation. 29. Relaigons with the I . Seychelles is on a two-year consultation cycle with the IMF. The most recent Article IV consultation was concluded by the Fund's Executive Directors on October 7, 1992. Seychelles has benefited from IMP technical assistance for government finance statistics in February 1990, but it has not made use of Fund resources to date. The Bank is coordinating closely with the IMP, and it fielded a parallel mission during the previous Article IV consultations in 1990. C. Summary Assessment 30. Seychelles has achieved strong growth and poverty alleviation against formidable odds. The challenge now facing the country is to continue environmentally sustainable and equitable growth. The Bank will play an important role at this juncture, through financial support for environmental protection and critical infrastructure, and policy advice aimed at strengthening public resource management and decreasing the role of the public sector. The Government has been increasingly responsive to Bank's advice and has demonstrated commitment to taking the measures needed to maintain fiscal and external balances, while proceeding with the introduction of market mechanisms and the transfer of some public activities to the private sector. Over the next five years, the Bank would consider financing up to two projects. The Bank's economic work will focus on the review of public investment, and on policies required for environmentally sustinable development, human resource development, and continued external creditworthiness. 10 31. IBRD Graduation. The country assistance strategy does not propose initiation of graduation procedures at this juncture, though, at US$5,160 in 1991, the GNP per capita was 15% above the graduation benchmark. Seychelles has a minuscule economy with limited resources and a heavy dependence on a notoriously volatile tourism market. Moreover, the country is facing a period of political and economic change in an uncertain global environment, and will need more than ever Bank support and advice in order to preserve past accomplishments and continue its strong growth performance. The Bank will closely monitor developments in the country and review the suitability of the proposed assistance strategy and lending program on a regular basis. 32. Country Performance Monitoring. The Bank's assistance strategy will be monitored against the following benchmarks: (i) Government adoption of policies promoting private sector investment and a reduction in the role of the State; (ii) progress on environmetal preservation; (iii) continued successful implementation of Bank-fimanced operations; (iv) preparation of the country's first three-year rolling public investment program including priority projects consistent with the country's development strategy, and integrated in a coherent macroeconomic framework; (v) the explicit adoption as from 1993 of the link between the PIP and the budget in such a way that annual capital expenditure plans reflect the appropriate annual tranche of the three-year PIP; and (vi) maintenance of external creditworthiness. PART II - TRE LOAN Badkground 33. For several decades the Government of Seychelles has demonstrated a sustained commitment to environmental preservation. Seven national parks and three special reserves, inluding two UNESCO World Heritage Sites, have been designated which together comprise 42% of the total land area of the country and 23,000 ha of surrounding reefs. Seychelles fauna and flora display an exceptional richness and diversity. Many species are endemic to isolated Islands of the archipelago, which explains at once their attractiveness and their vulnerability. Human settlement, and Its attendant overexploitation of species and attempts to reorganize Iland ecosystems, has been the main cause of declines in species populations. 34. Attempts to preserve resources in the 1.3-million sq. km maritime zone surrounding Seychelles have been hampered by growing pollution generated from fishing and commercial vessels. Because of its remote location in the western Indian Ocean, Seycheiles relies to a great extent on maritime transport fct imports. The rapid development of an industral tuna flshery has resulted in a sharp increase in shipping activities at the country's main port of Victoria. Waste oil from the commercial fishing fleets is dumped at sea, and brine contaminated by fish waste is pumped into offshore waters on a regular basis. The most urgent action to be taken to reduce ship-generated pollution of the sea is to provide adequate facilities at the Port of Victoria for the reception, storage, recycling or disposal of waste from all commercial vessels, cruise ships, yachts, and fishing vessels. 35. Concerted, nationwide efforts at conservation date from the 1960s, with the creation of the Nadonal Parks and Nature Conservancy Commission (ater the Seychelles National Environment Commission) and the conferring of full responsibility for the management of Cousin 11 island to the International Council for Bird Preservation. In addition to legislation establishing the national parks and preserves, other regulations protect land birds, sea birds and their eggs, marine turtles, shells, marine mammals, at least 25 species of trees, and giant tortoises. Following the Cousin island example, Aride island has been managed since 1973 by the Royal Society for Nature Conservation. In 1979 the Seychelles Island Foundation (SIF), a charitable trust, was established to manage and conduct scientific research on Aldabra, the world's largest coral atoll and a remarkably rich enviromnent for terrestrial and marine life. 36. The Goverunent's strategic objective of sustainable development calls for public and private investment to be fully consistent with environmenta preservation. To achieve this objective, environmental and resource management issues have been integrated into the current 1990-94 development plan. As a more detailed and operational extension of the development plan, environmental projects and portions of projects were consolidated into an Environmental Management Plan for Seychelles (EMPS) during 1990-91. The EMPS was presented in February 1991 at a donors' meeting sponsored by the Bank, UNDP, and UNEP and held at the Bak's European Office in Paris. Pledges totalling US$40 million were secured from bilateral donors, NGOs, and multilateral agencies. Responsibility for implementation of the EMPS rests with the Ministry of Environment, Economic Planning, and External Relations (MEPER), in collaboration with several public and private agencies. 37. As an island nation, Seychelles has long recognized the importance of effective transport links, both with trading partners and between islands. The deep-water port at Victoria processes most freight imports and exports, and an active inter-island cargo trade is handled by schooners, a government cargo vessel, and hundreds of small boats. Air Seychelles, the national carrier, has 7 aircraft including a B-767 in its fleet and serves the main islands of Mahe and Praslin as well as several outer Seychelles islands. About 6,000 vehicles use a network of 240 km of main roads, and an extensive network of secondary roads and tracks. A program to rehabilitate the main roads of Mali6 was carried out under the 1985-89 development plan, withf support from the Bank (Ln. 2492-SEY). With the completion of this program in 1991, the main road network on Mahd can be maintained without recourse to external aid. Some resources in this program were also devoted to roads on Praslin. There is a need, however, to upgrade other segments of the main road network on Praslin so as to achieve a similar result. In view of the economy's heavy reliance on tourism, transport improvements of this type are critical for national development since they facilitate access of visitors to environmental attractions while strengthening the local economy. Project Objectives 38. The proposed project is designed to improve the basis for sustained tourism growth, while preserving or restoring environmentally sensitive areas. Tourist access on Ptaslin would be facilitated through rehabilitation of the main road network, airport improvements, and enhancement of reliable water supplies. For environment the project would support EMPS programs in resource management, biodiversity conservation, and marine pollution control, the latter two through a program financed under the Global Environment Facility (GEF). Under both the project and the GEF program, the Bank would continue to assist with implementation of the EMPS as a whole. A set of indicators to monitor progress toward the atainment of these objectives has been developed in collaboration with the govermnent. 12 Projeet Description 39. The project would consist of the following components: (a) Resource Managenent - improvement of water supplies on Praslin island; study of water resources and preparation of water management plans for selected outer islands; preparation of management plans for marine resources; and an organizational study of the Environment Division of MEPER; estimated cost: US$1.77 million (25%); (b) Biodiversity Conservation and Abatement of Marine Pollution - restoration and preservation of Aldabra ecosystem; protection of sea turtes; and a study of waste reception facilities at the Port of Victoria; estimated cost US$1.8 million (26%); and (c) Transport - upgrading to paved standard of main roads on Praslin island; resurfacing of runway and expansion of parking apron at the Praslin airport; and the preparation and implementation of an action plan for road traffic safety, chiefly on the main island of Mahe; estimated cost US$2.72 million (39%). Schedule A provides more detailed costs for each of the components, as well as the project financing plan. Schedule B provides details on the procurement arrangements and the disbursements under the proposed loan. Inplementation 40. Responsibility for implementation of EMPS activities rests with MEPER, which will appoint a National Coordinator to supervise the progress of EMPS execution, provide advice to participating groups, exchange information, and direcdy manage some EMPS project. MEPER has delegated management of other EMPS projects to the Seychelles Island Foundation (SIP), a charitable trust supported by international scientific agencies, and other groups whose specialized expertise can be brought to bear. The Public Utilities Corporation (PUC), the water and electricity authority, will carry out the Praslin water supply improvements. The Environment Division of MEPER will be responsible for other portions of the resource management program, including the water resources and marine resources management plans. In carrying out these programs, MEPER will maintain close liaison with the Seychelles Fishing Authority (SPA), which regulates the taking of marine turdes, and the Department of Industry for arisan re- training. SIP will implement the Aldabra program, with support from the interational scientific groups represented on its Board of Directors. Road and airport improvements on Praslin will be the responsibility of the Land Transport Division (LTD) and Directorate of Civil Aviation (DCA) of the Ministry of Tourism and Transport. To facilitate implementation, a draft Implementation Handbook has been prepared, and will be finalized prior to the launching of implementation. Progress will be evaluated during a Mid-Term Review. Sustainability 41. The EMPS represents a commitment to carry out an integrated program of environmental preservation and sustainable development through the year 2000. A strengthened MEPER, combining environment with economic planning, will be increasingly able over the 1990s to reflect the lessons of EMPS experience in development planning. Likewise, SIP wil be able to supervise plans and actions for research, conservation, and possibly limited ecotourism on Aldabra. It is expected that through the project, SIF management capabilities will be significantly strengthened. Sustained monitoring of cost recovery in the treatment of ship wastes will ensure successful replication in Seychelles and other similar economies of the region. International interest and the Government's long-standing commitment to environmental preservation indicate good prospects for sustainabiity of this and other project interventions. 13 Lessons Learned from Previous Bank Involvement 42. The Bank's only project in Seychelles, focusing on port and road improvements (Ln. 2492-SEY), was approved in 1986 and successfilly completed in 1991. Flexibility in project design, allowing adaptations if and as required during implementation, proved to be extremely useful in this project, especially in the road maintenance component which took account of changes in the condition of the roads and in maintenance requirements between appraisal and actual implementation. The project also benefited from experience gained in environment operations in small island settings, including the Caribbean, the Galapagos islands and Mauritius. Largely as a result of the more intensive involvement over the past three years, Seychelles has become much more familiar with Bank policies and procedures. IRationale for Bank Involvement 43. The project supports the Bank's country assistance strategy which aims to direct national development efforts toward mid- and upscale tourism and fishing, while paying special attention to the preservation of Seychelles' environment. Experience gained from the project, and the studies financed by the project, will deepen the Bank's knowledge of environmental management and of practical issues in the implementation of environmental action plans. The Bank's involvement should also lead to better coordination of the donors and international NGOs active in the environment and transport sectors. Agreed Actions 44. During negotiations, aereement was reache with Govemment on the following matters: (a) legislation will be approved by December 31, 1993 banning the trade in endangered sea tutes and turtle products; (b) budgetary allocations at least equal in real terms to the approved 1992 operatng budget will be maintained through fiscal year 1996 for the Division of Environment, MEPER with regard to its total expenditure and for LTD with regard to its operating budget and allocations for road maintenance; (c) charges for landing of aircraft at Praslin airport will be periodically adjusted to ensure that revenues from the airport are at least equal to operating costs; (d) all water assets presently owned by Government will be transferred to PUC by December 31, 1993; (e) PUC would ensure that, for its PraslinlLa Digue water operations, (i) its working ratio is not higher than 85 percent by the end of 1994 and 70 percent by the end of 1995; (ii) unaccounted-for water is reduced to 18 percent by the end of 1993 and maintained thereafter; and (iii) receivables do not exceed 60 days of sales for domestic, commercial, and government accounts; (f) PUC would ensure that its Praslin/La Digue water operations yield a return on net fixed assets in operation of at least 2 percent by 1995, and would take all needed measures including tariff increases to achieve this result. Conditions of Effectiveness would be: (a) appointment in MEPER of a National Coordinator for implementation of the EMPS; and (b) signature of the subsidiary loan agreement between the Government and PUC for Praslin water supply improvements. Conditions of Disburs of specific components would be: (a) signature of a Memorandum of Understanding between MEPER and SFA for supervision of the marine resources management plans; (b) completion of an assessment of the possible impacts of proposed water supply works on a national park on Praslin island; (c) appointment in LTD of a full-time representative on Praslin island for 14 management of the Praslin road rehabilitation program; and (d) increase in charges for landing of aircraft at Praslin airport to SR 30 per 1,000 kg of permissible weight or part thereof. E3nvironmental Aspects 45. For the transport program, works will consist of paving and resurfacing of existing alignments rather than new construction. Elimination of dust problems on the present unpaved roads will mainly benefit road users. Effects on residents would be controlled by retaining the present alignments, which because of curves and other features are an automatic restraint on speed. The proposed Praslin water supply works are expected to have little or no adverse environmental impact. The GEF program should have significant positive effects on the envirownent, and the adverse impacts are again expected to be minimal. Studies and management planning comprise the bulk of this program. Civil works at the Aldabra research station will consist of rehabilitation of existing facilities rather than expansion. Overall environmental effects will be monitored by MEPER. Program Objective Categories 46. Although not intended to address poverty issues direcdy, the project would significantly benefit low-income populations in at least two respects. Poor famiies are affected more than others when marine resources such as octopus and lobsters become scarce. Preparation of management plans for marine resources would identify the sustainable yield of such resources, and consequently help prevent scarcities through over-exploitation. Aside from the poverty aspects discussed above, another program objective category addressed by the project is public sector management. Specifically, the project would support the efforts of public agencies to create the incentives for proper environmental management by all concerned groups. ProJect Benefits 47. Preparation of the EMPS in conjunction with the 1990-94 development plan represents in itself a major step toward incorporation of environmental practice into development decision-making. Within the EMPS program, the activities supported by the GEP program would primarily benefit the international community by addressing issues of global concern. GEF support of endangered sea turdes represents the pilot phase demonstration of how to meet the challenges of preservation of endemic biodiversity in isolated island communities. This program would provide alternative forms of livelihood and compensation for the foregone benefits of turde harvesting to local populations. The Aldabra program, rather than seeking only to arrest degradation, aims at restoration and preservation of the ecosystem. For marine pollution, demonstration of how to deal with fishing fleet wastes will be beneficial to many other small islands which have fishing fleets operating in their marine economic zones. Finally, the direct beneficiaries of Praslin improvements will mainly be private operators of taxis and other vehicles for hire, the public bus company, and visitors enjoying easier access to departure points for tourism activities. Internal economic rates of return were calculated for the Praslin road improvement program (17 percent), water supply improvements (47 percent), and airport improvements (43 percent). 'Me weighted average internal economic rate of return for all project elements for which a quantitative analysis was undertaken is 22 percent. 15 Risks 48. The main risk facing the project is that of delays in implementation due to the scarcity of trained staff. This risk would be minimized through the use of short-term technical advisers to provide specialized inputs, careful monitoring, and training. Among implemendng agencies, SIP presents the greatest risk of inadequate management. This risk would be mitigated by the strengthened management capacity now being put in place at SIF, and by the hiring with GEE funds of two scientists with managerial experience over the span of two years. lRecommendation 49. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank and recommend that the Executive Directors approve it. Lewis Preston President Attachment Washington, D.C. December 2, 1992 16 Schedule A Page 1 of 1 POJECT COST BSTE LT lWIp Ll n omIg % of SRIW UWOO0 L WVIrGIDNTW L P sW Wa ta,PW eq eL P Ib 5303 1935 723.8 106.1 38.7 1448 27 2 2. d Muaa. 95CD 3.41.0 4,.0 1912 768.2 959.4 o0 14 3 astlmoR ues maim Plans 401.0 2,s75. 2,769 8S02 s.0 595.2 82 8 4. OrVninUoai8tudyofDMdmf avlzonme 117.0 275.0 392.0 23.4 55.0 78.4 70 1 Sub-tol 2,0043 6,4S 8A8A 400.9 1,376.9 1,777. 77 25 IL slatlaCom__dadft L Rist htadPecwAonfAdabrs BsM 397.0 276 2,973.0 79.4 515.2 594.6 87 8 2. ProtaseatsesaThd 3,029.0 224.0 S313.0 605. 456s 10626 43 1s 3. WadeS RIcSpUb PadN OLARPOL)S ft 77.0 68.0 76S.0 ISA 1.6 13 90 3 Sub-tol 3,*3n S48.0 901 700A6 1,09 1U.2 61 26 EL IRANWONT A. PulAtasdlm _pwmuP mgopa 29383 7037.7 9,760 S7.7 1,407.S 1,9S.2 71 28 B. Pat_A4Wba*mjwo 253.0 133 1,4363 506 2367 2873 82 4 C. Road mihSeflorpm 422.0 1792.0 2,214.0 84.4 3SS4 442. 81 7 Sub-NW 3,633 10.013.0 136263 722.7 2002.6 2,12S3 73 39 TOTALBASECOST 9,120.6 22.4455 3166 I,824.2 4,4891 6,31)3 71 90 PbhyalCeeoa-d 469.7 1,4634 133 93.9 292.7 38S6 76 6 PucC _ml n 392.7 1365 529.2 785 2273 305.8 74 4 TOFALPROJ COST 990 25,06i4 32.A L J9966 lQ.1 .IAS.7 72 100 mUCOG PLAN (US$ Mm=No) L 0.7 3B 8 4.5 GaUEgmt 0.6 1.2 L8 Wa_MmO 0.7 - 0.7 TOTAL 2.0 5. 7.0 17 Sedulo Page 1 of 2 PROCUREMNT ARRINGEMENTS (US MILLON) Not Total Petazgc Civil Wotd 2.5 0.1 0.1 2.7 39% (.1) (0-0) (0.1) (2.2) EquBm, Mateiab, and lupplis 0.6 02 0.2 1.0 14% (0.6) (0.2) (0.0) (0.8) Tlig 0.2 0.2 3% (0.1) (0.1) Teehn ca lAsitane 0.8 0.8 11% (0.7) (0.7) Consulting Seurvs' 1.5 1.5 21% (0.6) (0.6) opeting Epen 0.2 0.2 3% (0.0) (0.0) A,o C_"owo and ii_l_ 0.6 0.6 9% (0.1) (0.1) TOTAL 3.1 0.3 2.8 0.8 7.0 100% (2.7) (0.2) (1.5) (0-1) (45) Naw: Fgures in panthes inicat amounts to be finaned under BDn loan. # Inteinal s .ppig, direct puhase, fonre account, nd hiting of conslants v nbcludeos i.ncen opeatg comt and suales and evenue com on to atisas (U F) Longets advises for udios Odter oosulting sevimes for studies 18 Ahu Page 2 of 2 DISBURSEMENT ARRANGEMENVS Disburuine Banu LEo Alloced, % of Expenditu Cetor in USS gil1ign _to- be Pitw,_ civil Wo*a 2.1 100% of fo ign expeditus and 75% of local epitures Equlpm Material, 0.7 100% of foreign expediturs snd Supples nd 75% of local awpndites Training 0.1 100% of foreign expe_du and 50% of local epiu Technal Asistn 0.6 100% of foreig expedue an 50% of loca expniue CongXsg Servc 0.6 100% of foreign exp_ndit and 50% of local exend Atisan Compeson 0.1 100% of foreign opeitus aN ResCtem and 50% of loc expei UnaLocated UTYAL FAt1nmeJl DisburAseients (US$ mllo) PY94m EM EM lt kA AM IBRD L4n 0.8 1.9 1.1 0.5 02 4.5 *ET GA"t 0.3 0.7 0.6 0.2 - 1.8 Covkwnurt Oi 0.2 0.2 0.1 0.1 0.7 TOWa 1.2 2.8 1.9 0.8 03 7.0 IBRD Loan 0.8 2.7 3.8 4.3 4.5 45 Er oGant 0.3 1.0 1.6 1.8 1.8 1.8 GoVernen 0.1 0.3 0.5 0.6 0.7 0.7 ToWal 1.2 4.0 5.9 6.7 7.0 7.0 19 ul Page 1 of 1 *SEYCHELLES ENVIRONMENT AND TRANSPORT PROJECT Tlmetable of Ka lRosslngEMtS 1. Tikme taken to prepare: 18 months 2. Responsible Bank unit: AF3IN 3. First Bank mission: September 1990 4. Identification mission September 1990 S. Preparation missions: February, July, December 1991 6. Appraisal mission: June-July 1992&1 7. Negodations: November 1992 S. Planned Effectiveness: February 1993 A, This pfojed io base on th findps of an apprai mission Xt visited SychUe Jls IVW/ 19 ooIipzddtg 0. Gelms (mblon lader), P. Cardy (nvionment spcali), A. Zhose (fIaal analys, C.G. Ludl (eoobW, and L. Rasmson (smuy eqgsiee). 20 Schedule D Page 1 of 1 STATUS OF BANK GROUP OPERATIONS IN SECHIELLES A. STATEMENT OF BANK LOANS AND IDA CREDITS September 30, 1992 Amount in US$ Million (less cancellation) Loan Fiscal Number Year Borrower Purpose Bank 1 Loan fully disbursed 62 Total less cancellations: 6.2 of which has been repaid 2.08 Total due Bank: 412 B. STATEMENT OF TCINVESTMENTS September 30, 1992 !oan Equity Total - Original commitment 16.10 0.00 16.00 - Disbursed and fully repaid 2.60 0.00 2.60 - Cancelled 7.20 0.00 7.20 Net Commitments 6.30 0.00 6.30 Undisbursed 6.30 0.00 6.30 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ l RR D 22 3 5 Adde 1. - _ - - -. - - --- Grands i / . ; ? \ NoCh L AwiM¢R^0Olgr/e L~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Bob . W WW Sou r p,a.r~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~i,~~~~~~~~Soeor, / ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~W1, FMlicItd 1 / Cousin!URIEtJSZ LStOtD \ glhoueh I - LCi / / - ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~NodaL MeAfis!fMap to Diem l CHEVALIER AAY ANrurJm-- \Bj\ A Ste. Ano rtrnf SAVWON CURlEUSE BAY o I. S AiD r ESTATE LAND Mh6 L F ) t 4 CORAiSLANLIN ESTAT X ES7iATE OE I RNS - ern u A~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~01 X.. J ..hl, af1 i i4..Z,0 SEYCHELLEs GRNDANSE. _ s'.. -AN Praslin Improvement Program FONDWLES IONA L PAR R Kus ROAMJ W/JER$UPL FONFOD AZOEA_ WILF FRPOE FODAZR StQe. An.a ROUND RMAIMN D E ? LAUem9N XE ST. SAVEURe t AND AND DREIISIO8NDOYEIIL& MD_; o n 0BSIINOif>ADS4 ,O t; FMINND 9 This mq,oho been plmn* by . MN ROAD NErtDW ,MNN ft Rolw3' The WO an' sofdu= -REWUTARTLON 19SB. l S0 C INIA O 1 .2-diANEW2 tWhe bouws shown -~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ thisLWORR Y%d notAETe llERS, i Om ) . w i Sepnber 1992 lBRD 235: 4AN'' t'46; 464 462 SEYCHELLES GEF INVESTMENT: BIODIVERSITY PROTECTION ALDABRA ISLAND ile Malabar or Middle Island IN P;rcrd RJSEAIII tS.oCH, STATION t- -C A - - t;Grand. Terre ,- - ,...A ,. , ~~~ ~~or ' 'C7,t7''o' Mo .tIq Sou th Island * E . _ 7 e ~- * r- I~ rerre o r RESEARCH STMON rn !^ /, t4, .. r -- e . *e ~~~~~~~~~~~~~~~OTHER WuIUDINGS ------ TACKS OR FOOTPATHS p- CHANNELS SEYCHELLES 4 SHALLOWARMA WflHIN LAGOON ASEYCHEtES INTERNATIONAL BOUNDARIES NDA d O i 2 3 4 C 4 7 a AIvelrA". I P!1 ,,h,l O i~m i.~L j 4 ilVEA _ 87g A.W. I N D A N O C E A N Mp h I.. ,p.' 75 . d' AG. 7k 1 CWWS As -drr 1"1^ _eb4i, IN d s tffuc zrFx cr cp bf v 7 cwwrrof hokGo TI.., cf l ,, c.d .c Ahc,dtd _ 5,J i _ ~~~~~~~~44195 462 47'u M2 AGACA MA" 19 IBRD 23522 i ' . ~~~~~~~~~~~~S E Y C H E L L E S GEF INVESTMENT: ABATEMENT OF MARINE POLLUTION VICTORIA FISHING AND COMMERCIAL PORTS o PROPOSED LOCATtON O' PROJECT COMPONENTS ( L PORTFACILmES - g ' ROADS DREDGED AREAS ( \-, ' z f V E S S E_L CORAL REEFS \ r w ,z, T U R N I N G - ISOBATHS IN METERS >XW, < XWL W A . .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ph..n,p.hT.Wo . . BASIN>)¢ ' XS gG,) E|g fFoqo#°fon.f° rd BFJNE SOUMON ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ a a 0d.dh fwDo".. s-. / -~ik -.F . #000= a~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~04 //,C ^" HT Rv / / ( C- I. &al~~~~~ PEBRUARY 1992