Dkontof'.O' The World Bank FOROFFTCIAL USE ONLY Rept Ne. P-5263-KAG MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION Tc THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT 0F SDR 23.0 MILLION TO THE DEMOCRATIC REî`'- 'IC OF MADAGASCAR FOR AN ANTANANARIVO PLAIN DEVELOPMENT PROJECT FEBRUARY23, 1990 MaIs documem bas a rescted dllbuto ud may be used by reciplents oely lu the perfoeumae of terolffeiia dudes. Its contenu maay ot otberiws be disclosedwithout Worid Bk authoadon. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
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Dkontof'.O'
The World Bank
FOR OFFTCIAL USE ONLY
Rept Ne. P-5263-KAG
MEMORANDUM AND RECOMMENDATION
OF THE
PRESIDENT OF THE
INTERNATIONAL DEVELOPMENT ASSOCIATION
Tc THE
EXECUTIVE DIRECTORS
ON A
PROPOSED CREDIT
0F SDR 23.0 MILLION
TO THE
DEMOCRATIC REî`'- 'IC OF MADAGASCAR
FOR AN
ANTANANARIVO PLAIN DEVELOPMENT PROJECT
FEBRUARY 23, 1990
MaIs documem bas a rescted dllbuto ud may be used by reciplents oely lu the perfoeumae ofterolffeiia dudes. Its contenu maay ot otberiws be disclosed without Worid Bk authoadon.
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CURRENCY EQu!A[Lvm
Curr.ncy Unit - Malagasy Franc (FMg)us$1.00 - mWg 1,600Fils 1,000 US$0.62
'WË IGRT AJ )ZSURES
1 Hectaro (ha) - 10,000 m21 S4uare Kilometer - 100 hal14etric Ton (mt) - 1,000 kg
FISCAL YEAR
Jamzary 1- December 31
GLOSSARY OF ABBR3EIATI0KS AN> ACRONYHS
CCCE Caisse Centrale de Coopiration EconomiqusFAC Fonds t'Aide et de Coopération (France)1Fg y Mlagasy Franc
.
FOR OFFICIAL USE ONLY
MAAGASCAR
ANTANARIVO PLAIN DEEOPM P0JEC?
DIT * PROAD CT s mW
Borrovert Democratie Republic of Madagascar
Beneficiaries: Ministry of Agriculture, Province of Antananarivo andMunicipality of Antananarivo
Amount: SDR 23.0 million (US$ 30.5 million equivalent)
Termes Standard IDA Terme, with 40 years maturity
FinancinR Plans
US $ million
Total of Total
IDA 30.5 52.2CCCE 21.5 36.8FAC 0.8 1.4Government 5.7 9.7
I This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorzation.
MEMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIONAL DEVELOPMENT ASSOCIATION
TO THE EXECUTWE DIRECTORSON A PROPOSED CREDIT
TO THE DENOCRATIC REPUBLIC OF MADAGASCARFOR AN ANTANANARIVO PLAIN DEVELOPMENT PFOJECT
1. The folloving memorandum and recommendation on a proposedAntananarivo Plain Development Gredit to the Democratic Republic ofMadagascar for SDR 23.0 millior. (US$ 30.5 million equivalent) i8submitted for approval. The proposed credit vould be on standardIDA terme vith 40 years' maturity and would support implementationof the Gov*rnment's strategy for the urban, water supply andsanitation sectors. The project vould be cofinanced by CCCE(US$ 21.5 million equivalent) and FAC (US$ 0.8 million equivalent)(France).
2. Backtround. The city of Antananarivo vas originally builton hills located at the eastern border of thé Plain of Antananarivo.The flat area of about 180 km2 at the foot of the hills is a floodplain of the Ikopa River and its tributaries. With the growth ofAntananarivo suburbs, the low-lying flood pl&iLn has beensubstantially developed, mainly vith lov-standard dvellings lackingmodern infrastructure. In the past, thls plain has been subject toserious floeding, resulting in diaruption in oconomic activities andbo0s of humau llfe.
3. Under the Antananarivo Water and Sanitation Project (Cr.1002-MAG) approved In 1980, IDA intended among other objectives tofinance detalled engineering and vorks for surface drainage ands&nitation. In October 1984, however, because of lengthy delays,these components vere cancelled from the project. It vas understoodwith the Government, at that timo, that these coemponents w>uld formpart of a new project that vould cover the pretection anddevelopment of the Antananarivo plain in a br,ader context.Preliminary studies on the Antananarivo flood protection andagricultural devlopment aspects were alr.ady underway under thePlain of Antananarivo Technical Assistance Credit (1086-MAG),approved in 1980 to define a least-cost investment progr.m for thePlain. The final report of thei. studies vas completed In November1986. Additional studies and experience relevant to the urbanelements of the project have been gathared in connection with theon-going Urban Development Project (1497-MAG).
4. Prclect oblectives. The main objectives of the proposedproject vill be to (a) provide 100-year flood protection that vouldestablsih conditions for long-term growth in the Antananarivosuburbs; (b) rohabilitate and expand the drainage and sanitationfacilities in the Plain; (c) rehabilitate the irrigation schemes onthe Ikopa rigit bank to develop agriculture in the northern part ofthe Plain; (d) initiate the establishment of an economically viableurbanisation program to develop housing and employment in thesouthern part of the Plain; (e) Improve the.local governments
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revenues at the regional level; and (f) improve land use planningand investment programngia ln the Antananarivo Metropolitan region.The project would al80 strengthen the inatitutional framework forintegrated aud controlled development of the Plain.
5. Prolect description. The project vould include thefollowing componentss (a) rehabilitation and construction of dikesalong the Ikopa and Nomba Rivers to reinforce flood protection; (b)construction of drainage structures including a pumping station toevacu&te rain and vaste vater from the plain; (c) construction of anirrigation channel and rehabilitation of Irrigation achemes; (d)rehabilitation and expansion of the existing sewerage system; (e)drainage in the southern part of the Plain in the perspective of afuture urbanization; (g) updating of the cadastre ln theAntananarivo Region; Ch) tuprovement of local finances and resourcesmobilisation; (i) creation of an Authority responsible for operationand maintenance of flood control and drainage facilities, andprivatization of the severage system and of the collection andtreatment of solid vastes; and (j) studies, technical assistanceand training.
6. Total project costs have been estimated at about US$68.6million equivalent, with a foreign exchange component of US$39.1million (57.0 percent`. A breakdown of costs aad the financing planare shown la Schedule A. Amounts and methods of procurement and ofdisbursements, and the disbursement schedule, are ahown in ScheduleB. A timetable of key project processing events and the statue ofBank Group operations in Madagascar are given ln schedule C and D,respectively. A map is alse attachod. The Staff Appraisal ReportNo.8152-MAG, dated February 23, 1990 is being distributedseparately.
7? Rationale for IDA involvement. The Government's urbandevelopment strategy foeuses primarily on maintenance andrehabilitation, which la fully consistent vith the IDA countrystrategy. In this project, IDA emphasis vill be on Lmprovedfinancial and techaical capabilities of municipalities,strengthening urban management and institution building,privatization of municipal services and establishment of costrecovery mechanisms through improvement of existing taxation, andimplementation of a new vater tax. Without IDA involvement, therewould be a serious risk that political pressures would lead to theadoption of a program that does not provide for any institutionalstrengthening.
8. Actions axreed. The Government and the AntananarivoMunicipality have agreed to privatize operation and maintenance ofthe severage system, as vell as collection and treatment of solidvastes. They alseo agreed to create, by December 31, 1992, anautonomous agency for operation and maintenance of the flood control
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sud drainage faciliti es, aud to control urbanisation in the southernpart of theo Plain during project execution. Conditions ofeffectiveness vill be. ML) decision to protect the irrigated areasagainst urbanisation ln the part of the Plain where irrigation vouldb. r.habilitated; and (iL) decision on a system to cover operationand maintoenance cost of flood control and drainage facilitges.Conditions of diabursement vill b.: (Ij mendment to the existingland legislation to makoe mndatory the recording of any transfer ofovn.rship of land; (ii) transfer of urban sewerage and solid vastescollection and disposal activities to private companies, andestablishment of a vater ta%; (Mii) promulgation of measures tocontrol urbanisation in the southern part of the Plain; and (iv)execution of the resettlement plan.
9. Environment. A brief environmental assessment has beencarried out. Its overall conclusion is that the proposed projectvuld have a very positive enviroumental Tmpact on the environmentof the poor suburbs of the capital city, which are periodicallyflooded, vith a severage system out of service and significanthealth hazards. The project vould alse finance erosioncontrollreforestation studies for vatersheds protection.
10. Benefits. The project vould lmprove the living conditionsof the poorest population of the city and of its suburbs, and vouldpermit an environmentally safe and economically rational developmentof this Plain which i. adjacent to the city center.
11. Risks. Tho main risik faced by the project are thosederived from the ecenomic situation of the country, since thecapacity of the population, particularly the urban poor, to pay forimproved services depends on the macroeconomic enviroument. Thisrisk is presently small as definite signa of economic recovery haveappeared in 1989 as a result of a nov vell eatablished economicadjustment program. Other risks are related to the capacity tomanage the project. This however is minimized through projectdesign by privatising part of municipal activities (severage andsolid vaste), having one coordinating agency for the flood controlsystem and adequate technical assistance and training.
12. Recommendation. I am satisfied that the proposed ci ditvould comply vith the Articles of Agreement of the Association andrecommend that the Executive Directors approve the proposed credit.
Note z Figures in pareantheses are the respective amounts financed by IDA.a/Contracts avards for technical assistance and consulting services.b/Figures shown above are rouaded and include contingencies.
-6-Schedule B
'age 2 of 2
D jburset« t
_ _
ee......~ US ullieu -- a
Uofua of Ce.dLt 2 of esedi:turtCa.go#y Allocated te b. f Lnaod
1 Civil iwotk 1002 of foega "sd 90Sof local wweuiturg
ta) S.vwas 6.8(b) Sold Vaste 0.2«c) Dr:aisge South PleiA 2.7td) àfdt" t 440l a"
mb. dtka 1.0(>) Othe» 4.2
Tots 14.92 Eqpat lOozot foisa or of local
oxa.fctoci epeditucs Md 90S(a) Sold Vaste 0.1 of local pSadtur. for oteWr(b) Laud regstacy item presued locally.(c>) oth 1.1
Note i Flgures in parentheses are the respective amouats financed by IDA.a/Contre.4ts awards for technical assistance and consulting services.b/Figurts shown above are rounded and include contingencies.
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Page 2 of 2
Disburs.ments
e._..n.. S S lu @eo....
Amout of Crtdlt 2 of expondlturesCategory Al4c.îed to bc filaacd
(a) Tté taok te pres rt S y ors(b) Ppau 4 gi b>t oov.gnt O K(4) Vtrst DA *tstions Deçber 1984(4) ~t^App:aU must depa:tiaces Jis 1989(e) N g@otattoa*a Febtuay 1990(5) Plmd date f *ff etLv.ns October 1990<g) Lit o5 relevanct Mes Avtsr Md SeaiiatUa,
Pcojest(Cr. 1002 -G)PCR tornad La July 1989
-8-Schedule D
_______________________or__GASC_a page I of 1S.J.S 0F 9AN GtOtP OPtRÂ:O!%S
A. Stat.atof tank Lans a~d DACt.dLcs Co fSewtf 3.98;a;
Usa.gn; USa'
Tun* .*e .'ih mmd * c201WteArdi p~lt en ie an
,%= = fui y dl bUup^c.
CR I11- 190t Madagascfr Aceumtm à A1t 11.60 0.0Ci 1211-U Ulm U2 .pe. Village Lsvetc SS 8.14 0.07
CM 1200-O UIM Madegc T*iu'cp. évy 011 g,pi*Sentl 1." 0.'51
CR 187"- lu 1t2 Ud«oàer lut AI sdtne 10.0- 4.20CR 1îsO-UO ts m e su ii:»wtY 28.06 0.80C1.01144A4 11 l à -$mage * 20.00 0.1:Cit 148-A 1068 Mmo#or. Cnor. 0.wIomlo_ 7.00 0.70CI.P0-11AO lm Umdegm ca' 5 *U e.0 Ci.11010UA 100l WMdmgmuc Ur O.2 .08
Ce 13il620-Mé 10 èes4ur Cye d.ilo Ihblilmtati 11.00 0.1?
TOTAL 32.67 947.72 129.1Sof *b;ot h omo roid ll.Sl 9.40
TOTAL mm. o.uttad in 21.00 980.20
fAmeI1I no 0.0of mch bas bhC .;m. -é0.
TOTAL aw heid by Sonm *-id I0A 21.00 939.2n
TOTAL gedi chur~d 329 3S
ne pitua of pro;cit listod ;A Pot A is d«cribod ÎA a s*oDtfOe .oforC on cO 9pnk':A.fl;mm«d pe.olS ctA ir cxcuioi, *h;ch ic ;potmla t;wco y*omly ont cipc.amted to tno £atc.t -
Drcr«t',r oe , Aar4 30 and Oc4tb r :1 T! s* wd;gbgeed bmolnc* of :0A 6 mmd 7 n USt ses calci.Ited t :so SOR -t* of 9/311sa9.
SJ Not yot *tffectv4.
9
Schedule D
page 2 of 2
S. Statmat of t,EC tflvosstm! n< a of SDeosb. 30. :989>
Loan t4ui ,.... e......(USS iilon. - ......-
19?? Sotéma - Textile Mi1l at Majunga 11.000 0.2991980 $t - Shoe xufacturing in
Anttnurivo 1.250 L.2501903 Plcherles de NfomsL-1e 2.570 0.099 2.GI91985 Coton^. S. A. at Antsirabe 9.Z91 0.184 9.st51907 Sotema * TextiLe Mill et Majunga 3.717 0.009 3.720
Total 2-t.82 0 28. 19.
Total couitmnusnov hold by rFc 13C69L 0.591 14.209
MADAGASCARANTANANARIVO PLAIN PROJECT
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