The World Bank Bamako Engine of Inclusive & Resilient Growth (P171658) Project Information Document (PID) Concept Stage | Date Prepared/Updated: 29-Jan-2020 | Report No: PIDC28016 Feb. 04, 2020 Page 1 of 10 The World Bank Bamako Engine of Inclusive & Resilient Growth (P171658) BASIC INFORMATION A. Basic Project Data OPS TABLE Country Project ID Parent Project ID (if any) Project Name Mali P171658 Bamako Engine of Inclusive & Resilient Growth (P171658) Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) AFRICA Jul 22, 2020 Sep 30, 2020 Urban, Resilience and Land Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Ministry of Finance Ministre de l'Habitat, de l'Urbanisme et du Logement Social Proposed Development Objective(s) Improve access to urban waste and sanitation services, increase resilience to floods in selected vulnerable areas of the District of Bamako and targeted neighboring communes, and strengthen urban management capacity. PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 250.00 Total Financing 250.00 of which IBRD/IDA 200.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 200.00 IDA Credit 200.00 Non-World Bank Group Financing Other Sources 50.00 SPAIN, Govt. of 50.00 Feb. 04, 2020 Page 2 of 10 The World Bank Bamako Engine of Inclusive & Resilient Growth (P171658) Environmental and Social Risk Classification Concept Review Decision High Track II-The review did authorize the preparation to continue Other Decision (as needed) B. Introduction and Context Country Context Mali, a Sahelian country, is vulnerable to current and future impacts of climate change . Agriculture, food security, population, infrastructure and productive assets are highly exposed to both drought and flooding, and vulnerable to climate variability and change, including projected temperature increase and more erratic rainfall. Physical vulnerability is exacerbated by demographic, socioeconomic and environmental factors. These include, settlements in floodplains due to demographic pressure and migration towards urban areas that concentrate 50 percent of the economic activities and assets. This is also worsened by a high rate of poverty and inequality, weak urban and land- use planning and limited technical and financial capacities of governments and communities. Support for climate change adaptation measures through more resilient infrastructure in cities is critical. Many of Mali’s development challenges have a spatial dimension. Mali’s rate of urbanization has risen above 40 percent in the last few years, and the country is urbanizing rapidly, almost twice as fast as its rate of population growth1. However, urbanization has not been associated with commensurate increases in GDP and has, in fact, been accompanied by deindustrialization. The degrading security situation has brought questions of economic geography to the center of attention. Pressures to create jobs and provide housing and services have grown in more densely- populated southern parts of the country. At the same time, low levels of wealth, fiscal resource, service delivery, weak institutions make it more challenging to address regional disparities and target public resources where it would be more efficient and equitable to increase productivity and livability for Malian residents2. Bamako dominates the country’s landscape and is at the core of the urbanization challenge in Mali. The economic importance of Bamako cannot be understated – it is the nerve center of the national economy and accounts for 35 percent of GDP. Its population has more than doubled over the 2000-2015 period and is expected to expand steadily in the coming decades. Bamako and the neighboring commune of Koulikoro were the only net recipients of migrants (2009 Household Census), while the regions of Ségou, Mopti, Tombouctou and Gao were the largest net contributors of migrants. Bamako has potential to be a regional hub in West Africa - recent analysis for the Sahel region3 found that among inland capitals, Bamako would be one of the biggest gainers from investments to relieve present transportation bottlenecks across West Africa. 1 Mali’s annual urbanization rate at 4.9 percent per annum exceeds by far the overall population growth rate of 2.9 percent per annum. 2 World Bank (2015) The Geography of Poverty in Mali. 3 World Bank (2018) Unlocking Productivity and Livability – A Tale of 3 West African Cities. Feb. 04, 2020 Page 3 of 10 The World Bank Bamako Engine of Inclusive & Resilient Growth (P171658) Sectoral and Institutional Context Bamako is the world’s 6th fastest growing city – but it is not fulfilling its role as an engine of urban growth and service delivery. Despite its importance to the national economy, Bamako is failing to make progress on delivering urban services for its citizens. Access to basic services such as potable water, sanitation and waste collection lag Sub-Saharan African cities. Traffic congestion poses a big burden on livability. Fragmentation, both spatial and institutional, hinders the realization of the advantages associated with city growth. Solid waste management (SWM) exemplifies some of the coordination failures related to urban planning and service delivery in the Greater Bamako area. The lack of adequate infrastructure and regulation across the entire value chain hampers substantially the performance of service management. Erratic disposal practices are often observed such as dumping in drains or burning in open air, increasing the residents’ vulnerability to pollution and diseases and related climate risks. The limited ability of the District and other communes in the metropolitan area to collaborate is compounded by the absence of revenues from, and low level of investments in SWM in local budgets – US$0.03 per capita for the District and the six communes of Bamako. Liquid waste management faces similar challenges and the sanitation chain needs to be organized to perform effectively. In Bamako, sewer networks are almost nonexistent, and 98 percent of the population still rely on onsite sanitation. The capital city until today does not have any treatment facility. Most collection of sludge for domestic facilities relies on latrines and septic tanks’ emptiers (small entrepreneurs), who have no other option but to discharge wherever they can as no controlled disposal site exists. The performance of this market is hampered by the lack of regulation, including on tariffs, that affects providers’ profitability and raises tensions between local authorities and residents over environmental and sanitary risks. This generates significant environmental and economic costs that particularly affect the poorest communities. In May 2019, flooding in Bamako killed 15 people and 82 households were displaced. In fact, flood events in 2019 accounted for 14 people fatalities, 8,968 households and 70,769 people affected, 5262 houses destroyed. From 2007 to 2017 Mali was impacted by five large flooding events (two in 2007, 2013, 2016 et 2017) impacting more than 4 200 000 people. The institutional responses have been mainly focused on emergency management, lacking integrated risk management and have not yet been fully operationalized for the District of Bamako. Flooding events have often been a function of rivers, waterways and domestic latrines overflowing, combined with drainage system failures. This has also been linked to lack of adequate land use planning, followed by uncontrolled occupation of flood prone lowlands, rivers beds and floodplains. Institutional fragmentation has hampered data coordination and efforts to properly map existing infrastructure and planned investments. The situation is worsened by the lack of consultation of the neighborhood leaders and local mayors. Informal settlements are also in areas prone to environmental risks and have been unable to capture the returns due to land improvements, such as infrastructure investments and regularized lay- outs, and low investments have been associated with very low land prices.4 Local governments lack capabilities, including fiscal, to develop and implement urban plans and invest in urban infrastructure. This has contributed to ineffective spatial management of the Bamako metropolitan area. Dysfunction in land markets is a significant deterrent to productive investment in cities, affecting not just the patterns of land-use and building volumes, but also limiting the ability of local governments to capture the value of land (for instance, through taxation) for economic development investments. Own-source revenues remain largely unexploited. There is 4 Lall, S. V., Henderson, J. V., and Venables, A. J. (2017). Africa’s Cities: Opening Doors to the World. World Bank. Feb. 04, 2020 Page 4 of 10 The World Bank Bamako Engine of Inclusive & Resilient Growth (P171658) also no capacity to invest by Bamako local governments5 and hence the government remains in principle the main funder of infrastructure in the capital. Relationship to CPF The Country Partnership Framework (CPF) for the period of FY16-19 (2015-2019) is articulated around three focus areas: (i) improving governance; (ii) creating economic opportunities; and (iii) building resilience . The proposed project is consistent with all three focus areas of the CPF. It supports decentralization over the Grand Bamako area to strengthening local governments’ capacities to deliver urban services and build resilience. The project will also contribute to the Bank’s engagement in Mali to improve efficiency and pro-poor public expenditures and to build citizen capacity to strengthen accountability, and in turn, to improve service delivery with focus on poor and vulnerable areas. Eventually, the project will seek for strategic partnerships with the private sector to improve overall investment capacity to deliver urban services. As a result of the Performance and Learning Review of the CPF implementation, undertaken in late FY19, the CPF period was extended to cover FY20 to reinforce the dialog with GoM to consolidate the Bank’s portfolio in Mali. C. Proposed Development Objective(s) Improve access to urban waste and sanitation services, increase resilience to floods in selected vulnerable areas of the District of Bamako and targeted neighboring communes, and strengthen urban management capacity. Key Results (From PCN) The proposed key results are as follows, to be disaggregated by gender: 1. People with access to regular waste collection in the project areas (number) 2. People provided with access to safely-managed sanitation services in the project areas (number) 3. People protected against periodic flooding in the project areas (number) 4. A digital platform (skills, data and tools) is used to inform critical urban planning activities and investment studies in the project areas D. Concept Description The theory of change underlying the proposed project interventions is that delivering prioritized urban infrastructure and services to reduce health, environmental and climate risks and increase resilience to floods in vulnerable target areas and supporting urban management capacity in the Grand Bamako would support the Government’s efforts to demonstrate visible and tangible improvements in the lives of urban citizens in the capital city in the longer term. This is critical for reducing poverty and at the same time increasing the economic attractiveness of Bamako as an engine of growth. 5 Budgets typically contain high proportion of emoluments (62 percent on average) and only 4.6 percent of budgets go towards investments. Feb. 04, 2020 Page 5 of 10 The World Bank Bamako Engine of Inclusive & Resilient Growth (P171658) Component #1: Improved Solid Waste Management (SWM) (US$60 million) The objective of this component is to help address the constraints identified in the management of solid waste collection and treatment in the Grand Bamako area. In line with the conclusions of the 2016 Bamako Sanitation Master Plan (Schéma Directeur d’Assainissement de Bamako, SDAB), activities under this component aim to (i) rehabilitate and expand infrastructure needed to restore the sector’s primary functions i.e. collection, transfer and treatment, (ii) improve the sector’s performance by strengthening the institutional and organizational framework as well as sector financing, which is a requirement to further enhance private sector participation, and (iii) support the transition toward more advanced solutions. Sub-component #1a: Development of backbone infrastructure. The proposed investments would consist of: (i) redeveloping the Noumoubougou landfill to provide the District with 10-year treatment capacity and (ii) developing transfer capacity through a network of modern and safe transfer facilities able to accommodate 100 percent of the waste collected in the District of Bamako. Sub-component #1b: Performance Improvement of waste management services. This sub-component seeks to help improve the overall performance of the waste management sector and contribute to the formulation of a comprehensive investment strategy, through activities along four thematic areas: • Establishing an effective framework for private sector participation, • Enhancing efficiency and effectiveness of the solid waste sector, • Upstream policy development, and • Community level and job creation activities, focusing on community engagement and women’s inclusion. Breakdown of costs for Component #1 Activities Total (US$ million) Sub-component #1a: Development of backbone infrastructure 55.00 Sub-component #1b: Performance Improvement of waste management 5.00 services Total 60.00 Component #2: Improved Water Supply, Sanitation and Hygiene (WASH) (US$70 million) This component will support both infrastructure and institutional measures to improve access to quality sanitation and hygiene services. Activities under this component will build on the priority sanitation program that was identified in 2016. While proposed investments will focus on priority infrastructure, accompanying measures will help strengthen the sector’s institutional, organizational and financial framework and efficient management. Sub-component #2a: Fecal sludge treatment plants. The priority activity is the construction of two fecal sludge treatment plants, on each bank of the river, to accommodate the current needs of the city. Technologies will be selected to minimize operations costs, GHG emissions and protect riverine communities from potential hazards during operation. Management options will be assessed to ensure a sustainable operation and maintenance. Sub-component #2b: Institutional WASH, domestic latrines and IEC campaigns. The rehabilitation or construction of WASH facilities in schools and health centers will complement efforts to improve other services under the project and Feb. 04, 2020 Page 6 of 10 The World Bank Bamako Engine of Inclusive & Resilient Growth (P171658) maximize impact. Mechanisms to enhance the construction or improvement of domestic latrines/facilities will be agreed in line with the effective situation of domestic sanitation in the areas. IEC campaigns on waste and sanitation will be implemented to foster behavior change towards improved and sanitary living conditions. Sub-component #2c: Institutional sector strengthening and support to the sanitation chain in Bamako. Diagnostic studies carried out as part of the 2016 SDAB6 have pointed out the overlaps in the responsibilities of solid and liquid waste oversight (DNACPN), management and operations of the proposed infrastructure and the role to be given to ANGESEM. The subcomponent will therefore: • Provide support to DNACPN and ANGESEM to help operationalize the institutional and organizational framework of the sanitation sector and its application at local level in Bamako; • Support the professionalization of private sanitation providers, including through involvement of the Association of Pit Emptyers, gender-based activities and digital technologies; • Studies for future sewer networks and wastewater treatment plants as planned in Phase 2 of the Master Plan. Sub-component #2d: Water supply investments. As needed, in areas selected by the project that would not be covered by the Kabala project in its ongoing phase, the component would support the densification of water distribution networks and household connections. Activities Total (US$ million) Sub-component #2a: Fecal sludge treatment plants 30.00 Sub-component #2b: Institutional WASH, domestic latrines and IEC campaigns 15.00 Sub-component #2c: Institutional strengthening and support to the sanitation 5.00 chain in Bamako Sub-component #2d: Water supply investments 20.00 Total 70.00 Component #3: Investments in Resilient Infrastructure (US$91 million) Sub-Component #3a: Investments in Primary Drainage Infrastructure and Public Spaces (US$69 million) The objective of this sub-component is to enhance flood resilience and urban living conditions in selected vulnerable neighborhoods. The investment will target flooding hotspots that have been identified throughout the cities. The flood hotspots to be addressed will be selected according to the following criteria: (i) level of exposure to flood risk hazard, (ii) priority in the drainage masterplan, (iii) vulnerability and poverty of the affected population, (iv) potential for complementarity with ongoing or future interventions from other development partners, (v) opportunities to secure and enhance public spaces, (vi) number of beneficiaries from updated public spaces, and (vii) limit demolition and resettlement. The intervention will be combined in the same geographic area targeted under components 1 and 2 on solid waste and sanitation management for a larger integrated impact. In the selected neighborhoods, investments will be made to restore and protect the capacity of the primary drainage network in critical areas with large-scale impacts on poor people’s living conditions. The rehabilitation work will also be an opportunity to develop public and green spaces along the canals. With the primary drainage network, 6 MAEDD: Etudes des aspects organisationnel, institutionnel et tarifaire liés à l’assainissement urbain – Schéma directeur d’assainissement de Bamako. 2016. Banque Africaine de Développement Feb. 04, 2020 Page 7 of 10 The World Bank Bamako Engine of Inclusive & Resilient Growth (P171658) investment will look at integrated storm water management in the neighborhood by securing and enhancing the public spaces that are in poor condition and being threatened by encroachment. This will be done through the development of public squares, parks, and sport fields which could also retain water during storm events. These spaces would be enhanced with urban services such as street lighting, energy, improved roads and pedestrian footpaths. These interventions will support better gender-related impacts by engaging women in the planning and design process, recruiting women in rehabilitation and maintenance works, and ensuring the public spaces created allow for women to use the space to the most possible. Sub-component 3b: Maximize Finance for Development (US$22 million) Under this sub-component, the project will focus on mobilizing private capital for a list of projects pre-identified by the District of Bamako and the Agence de Développement Régional (ADR). To this end, activities will center on taking one of these projects, the reconstruction of the Sogoniko Bus Terminal, to financial close. Support for the Sogoniko bus terminal strengthens resilience as it is within a flood hot-spot region, and thus is near flood infrastructure investments under component 3a. The Project will provide the following support: • Binding infrastructure investments for the Sogoniko Bus Terminal investment (US$15 million) • Preparatory work for future stream of investment projects (US$5 million) Breakdown of costs for Component #3 Activities Total (US$ million) Sub-component #3a: Investments in Drainage 69.00 Sub-component #3b: Maximize Finance for Development 22.00 Total 91.00 Component #4: Strengthening Institutional Capacity (US$17 million) This component will support capacity building activities for targeted entities at both local and central level to enable them to more effectively carry out their mandate as part of project implementation. Such activities will include, inter alia, support for: (i) operationalization of the newly created Inter-collectivity Syndic or Grand Bamako; (ii) elaboration of the Grand Bamako master plan; and (iii) setting up of digital platform for resilience. Breakdown of costs for Component #4 Activities Total (US$ million) Sub-component #4a: Support for Operationalization of Grand Bamako 3.00 Sub-component #4b: Digital Platform for Resilience 6.50 Sub-component #4c: Support the Urban Master Plan 3.50 Sub-component #4d: Investment Promotion Support 4.00 Total 17.00 Feb. 04, 2020 Page 8 of 10 The World Bank Bamako Engine of Inclusive & Resilient Growth (P171658) Component #5: Project Coordination Unit (US$12 million) This component will finance incremental project management costs, financial and technical audits, monitoring and evaluation of project activities (including gender disaggregated data), oversight of environmental and social safeguards, communication, technical assistance and consultant services, training and knowledge exchange. Component #6: Contingency Emergency Response Component (US$0 million) This component is a ‘zero-assignation’ CERC that will provide funding for immediate response in the event of an eligible crisis or emergency, defined as an event that has caused or is likely to imminently cause a major adverse economic and/or social impact associated with natural or man-made crises or disasters. Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Summary of Screening of Environmental and Social Risks and Impacts . . CONTACT POINT World Bank Megha Mukim, Veronique Verdeil, Zie Ibrahima Coulibaly Sr Urban Economist Borrower/Client/Recipient Ministry of Finance Implementing Agencies Feb. 04, 2020 Page 9 of 10 The World Bank Bamako Engine of Inclusive & Resilient Growth (P171658) Ministre de l'Habitat, de l'Urbanisme et du Logement Social Mariam Haidara Advisor haidara.mariam6@gmail.com FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Task Team Leader(s): Megha Mukim, Veronique Verdeil, Zie Ibrahima Coulibaly Approved By APPROVALTBL Practice Manager/Manager: Country Director: Feb. 04, 2020 Page 10 of 10