28818
DIRECTIONS IN DEVELOPMENT
THE WORLD BANK
Urban Environment
and Infrastructure
Toward Livable Cities
ANTHONY G. BIGIO AND BHARAT DAHIYA
DIRECTIONS IN DEVELOPMENT
Urban Environment and
Infrastructure
Toward Livable Cities
Anthony G. Bigio and Bharat Dahiya
THE WORLD BANK
Washington, D.C.
© 2004 The International Bank for Reconstruction and Development/THE WORLD BANK
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Washington, DC 20433 USA
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Cover design by Carol Levie
Cover photos from the World Bank Photo Library.
ISBN 0-8213-5796-4
Library of Congress Cataloging-in-Publication Data
Bigio, Anthony G., b. 1951–
Urban environment and infrastructure : toward livable cities / Anthony G. Bigio,
Bharat Dahiya.
p. cm. — (Directions in development)
Includes bibliographical references and index.
ISBN 0-8213-5796-4
1. World Bank. 2. Community development, Urban—Developing countries—
Evaluation. 3. Economic assistance—Developing countries—Evaluation.
4. Sustainable development—Developing countires. 5. Urban ecology—
Developing countries. I. Dahiya, Bharat, 1970– II. Title. III. Directions in
development (Washington, D.C.)
HN981.C6B54 2004
307.1'416'091724—dc22
2004043534
Contents
Foreword
vii
Preface
ix
Acknowledgments
xi
About the Authors
xii
Abbreviations
xiii
Executive Summary
xiv
PART I. MAIN FINDINGS OF THE PORTFOLIO REVIEW
1
1. Objectives of the Urban Environment Portfolio Review
3
2. The World Bank’s Commitment to Improving the Quality of the
Urban Environment
5
3. Portfolio Review Methodology
9
4. Profile of the Portfolio
14
5. Sector Contributions to the Portfolio
22
6. Urban Environmental Investments in Small and Large Cities
36
7. The Role of Local Government, Civil Society, and
the Private Sector
41
8. Institutional Strengthening and Technical Assistance
46
iii
iv
9. Tracking the Quality of the Urban Environment Portfolio
CONTENTS
49
10. Using Monitoring Indicators to Measure Progress
51
11. Strengths and Weaknesses of the Urban Environment
Portfolio
56
12. Recommendations for Future Work
59
PART II. CASE STUDIES
63
China: Liaoning Environment Project
67
India: Bombay Sewage Disposal Project
73
Colombia: Cartagena Water Supply, Sewerage and
Environmental Management Project
79
Guinea: Third Urban Development Project
85
República Bolivariana de Venezuela: Caracas
Slum-Upgrading Project
91
Nicaragua: Natural Disaster Vulnerability Reduction Project
97
Latvia: Municipal Solid Waste Management Project
102
Algeria: Industrial Pollution Control Project
108
Kenya, Tanzania, and Uganda: Lake Victoria Environmental
Management Project
114
Poland: Krakow Energy Efficiency Project
122
Mongolia: Improved Household Stoves in Urban
Centers Project
127
China: Guangzhou City Center Transport Project
133
Bibliography
138
Index
145
CONTENTS
Tables
3-1. World Bank Sector and Theme Codes Directly Relevant to the
Urban Environment
3-2. Project Activities Related to Urban Environmental Goals
4-1. Projects by Urban Environmental Goal and Level of Urban
Environmental Content
5-1. Projects by Sector and Level of Urban Environmental
Content
5-2. Number of Projects and Level of Urban
Environmental Investment, by Sector
5-3. Distribution of Urban Environmental Investment across
Bank Regions
5-4. Urban Environmental Goals Addressed, by Sector
6-1. Number of Urban Environmental Projects, by City
Size and Region
6-2. Number of Urban Environmental Projects, by Goal and
City Size
6-3. Number of Urban Environmental Projects, by Sector and
City Size
7-1. Involvement of Local Government, Civil Society, and the
Private Sector in Designing and Implementing Urban
Environmental Projects, by Goal
7-2. Number of Urban Environmental Projects, by Sector and
Counterpart
8-1. Institutional Strengthening, Capacity Building, Technical
Assistance, and Support to Counterparts, by Sector
10-1. Environmental Indicators Used to Measure Progress in
Urban Environmental Projects, by Goal
10-2. Urban Environmental Indicators Used, by Sector
10-3. Millennium Development Goal Targets of Urban
Environmental Projects, by Sector
Figures
4-1. Active World Bank Projects Contributing to Improving the
Urban Environment, 1993–2003
4-2. Classification of Projects by Level of Urban
Environment Content
4-3. Urban Population and Investment in Improving the Urban
Environment, by Region
4-4. World Bank Investment on the Urban Environment per
Urban Capita, by Region
4-5. Goals of Projects Contributing to Improving Urban
Environmental Quality
v
10
12
21
24
24
25
26
38
39
40
43
45
48
53
53
55
15
16
17
18
19
vi
CONTENTS
5-1. Number of Urban Environmental Projects and Level
of Investment, by Sector
5-2. Urban Environmental Projects in the Water and
Sanitation Sector, by Region
5-3. Urban Environmental Projects in the Urban
Development Sector, by Region
5-4. Urban Environmental Projects in the Environment Sector,
by Region
5-5. Urban Environmental Projects in the Energy Sector, by Region
5-6. Urban Environmental Projects in the Transport Sector,
by Region
6-1. Number of Urban Environmental Projects, by City Size
7-1. Counterparts Implementing World Bank–Funded Urban
Environmental Projects
8-1. Projects That Strengthen Institutions or Provide Technical
Assistance
9-1. Quality of the Urban Environment and Overall Bank
Portfolios,Third Quarter Fiscal 2003
10-1. Environmental Indicators Used in Urban
Environmental Projects
10-2. Projects Contributing to Meeting Millennium Development
Goal Targets
23
27
29
31
33
35
37
42
47
50
52
55
Foreword
In the developing world and in transition economies, cities are the engines
of growth, the centers of governance, and home to an increasing proportion
of the national population. By 2020, urban dwellers are expected to outnumber the rural population, and cities are projected to grow significantly
in size and numbers for the rest of the century, especially in Asia and Africa.
Yet the quality of life of these cities leaves much to be desired, as insufficient access to basic services—such as clean drinking water, sanitation,
and solid waste disposal—cause severe health consequences for residents,
and especially the poor. Pollution originating from productive activities
and urban mobility also impacts negatively on human health, and natural
resources in the urban areas, from the ambient air to the waterways to the
soil itself, are often contaminated.
Urban pollution travels fast and wide, impacting water resources and
agricultural production in the neighboring regions, and thus spreads further its negative impacts. Global emissions originating from intensive energy
use in the urban areas and from fossil fuel consumption contribute to climate change. In turn, climate change exacerbates the frequency and intensity of natural disasters, many of which affect cities with increasingly high
human and economic costs.
The quality of the urban environment and its linkages with regional and
global sustainability are essential public goods, and as such, deserve as
much attention as possible from national governments, and support from
the international community. Urban environmental management, however, is also the business of local governments, which often play a key role
in delivering services; of civil society, which promotes citizens’ health and
its rights to a clean, livable environment; and of the private sector, which
can increase the efficiency and effectiveness of service delivery.
The World Bank attaches a high importance to the expanded brown agenda,
as defined in this volume, and assists the governments of its client countries,
as well as the local stakeholders, in pursuing more livable cities and an
improved urban environmental quality. The Bank has an active portfolio
of over US$12 billion and one-fifth of all its lending operations currently
vii
viii
FOREWORD
committed to the pursuit of such goals. A variety of environmentally sound
interventions are needed, given the scale and the nature of the problems.
Three quarters of the projects aimed at improving the urban environment
are in the Water and Sanitation, Urban Development, Energy and Transport
sectors, which are part of the Infrastructure Vice-presidency.
As cities in developing countries and in transition economies continue
to grow, increasing attention must be given to the quality of their urban
environment and to their livability. The World Bank will continue to assist
these countries in the pursuit of such goals, and this volume is a statement
to our ongoing commitment.
NEMAT TALAAT SHAFIK
Vice-President, Infrastructure
IAN JOHNSON
Vice-President for Sustainable
Development
Preface
This volume is an outcome of a 2002–03 research project that examined the
World Bank’s ongoing commitments to improving the environmental quality of cities in client countries. The project reviewed the Bank’s urban environment portfolio by assessing the quantity and quality of ongoing
investments aimed at improving the urban environment, the role of the
various sectors involved, and the policy implications for the Bank’s future
work. The review was designed and carried out to fill a knowledge gap in
the understanding of the Bank’s commitments to improving the urban environment since the brown agenda became an important part of international
development assistance.
The volume is intended for internal and external dissemination. The
authors hope that colleagues from across the institution, both at headquarters and in the field offices, will be interested in learning more about
the characteristics of the investment operations currently being implemented to improve urban environmental quality. The report should also
be of interest to many Bank clients as well as to the larger development
community, in particular to readers interested in urban sustainability.
The report is the first major product of the Urban Environment Thematic
Group, an affiliation of World Bank staff who work on the urban environment. The group includes colleagues from many sectors, including Urban
Development, Water and Sanitation, Transport, Energy, and the Environment.
The Thematic Group was created in early 2002 by the Urban Development
Unit to foster more cross-sector collaboration.
The Thematic Group was actively involved in the substance of the
research project, and its members reviewed and discussed its findings. Ten
consultation sessions and focus groups were held between June and
December 2002, highlighting regional or sector aspects of the issues covered by the review.
The review’s main findings were presented to a special joint session of
the Urban Development, Water and Sanitation, and Environment Sector
Boards (the World Bank management panels in charge of these sectors) in
December 2002. There was broad endorsement for the cross-cutting approach
ix
x
PREFACE
of the research project, interest in its findings, and support for its main recommendations.
The authors hope that the report contributes to a more comprehensive
understanding of the linkages between infrastructure investments and the
improvement of urban environmental quality—and thus to the design of
future World Bank operations in this field.
Acknowledgments
The authors wish to thank many colleagues. Maryvonne Plessis-Fraissard
(Director, Transport and Urban Development Department); John Flora
(former Director, Transport and Urban Development Department); Kristalina
Georgieva (former Director, Environment Department); and Jamal Saghir
(Director, Water and Sanitation, Energy and Mining Departments) supported this project and its main messages. Rajagopal S. Iyer, Shyamal Sarkar,
Menahem Libhaber, Catherine Farvacque-Vitkovic, Dean Cira, Alexandra
Ortiz, Anders Halldin, Hocine Chalal, Richard Kaguamba, Peter Johansen,
Salvador Rivera, and Yan Zong, the Task Team Leaders of the 12 operations reviewed, shared valuable information and their own unique assessments of these projects. Christine Kessides (Senior Advisor, Urban
Development Unit); Ede Ijjasz-Vasquez (Senior Environment Specialist,
Environment Department); and Jan Janssens (Program Manager, Water and
Sanitation Unit) peer-reviewed the report and provided thoughtful comments and guidance for improving it. The members of the Urban
Environment Thematic Group, especially David Hanrahan (Lead
Environment Specialist, South Asia Region) and Jonathan Halpern (Adviser,
Water and Sanitation Unit), brought to the review the perspectives of the various sectors involved. Balakrishna Menon (Senior Urban Specialist, East
Asia and Pacific Region) helped in drafting the 12 case studies. Erika Puspa
(Research Assistant, Urban Development Unit) compiled the data on urban
population and updated the review database. Susan Graham from the
World Bank’s Office of the Publisher managed the production of the book.
This research project was partially financed with a grant by DANIDA,
the Danish Agency for Development Assistance, as part of its ongoing commitment to urban environmental quality in the developing world. This crucial support is gratefully acknowledged.
xi
About the Authors
Anthony G. Bigio is a Senior Urban Specialist in the Infrastructure
Department of the Middle East and North Africa Region of the World Bank.
During 2002 and 2003, he served as the Coordinator of the Urban
Environment Thematic Group and was based in the Urban Development
Unit of the Bank. From 1999 to 2001, he was the Coordinator of the Clean
Air Initiative, a global urban air quality management program. From 1994
to 1998, he was in charge of a series of capacity building programs on urban
environmental management, decentralization, and social development in
Sub-Saharan Africa, South Asia, and Latin America. He holds an M.A. in
architecture and urban planning from the University of Rome, Italy.
Bharat Dahiya is a Consultant in the Urban Development Unit of the World
Bank. Trained as an urban and regional planner, he has a PhD in urban
governance and environment from the University of Cambridge. He helped
implement the UN-Habitat’s Sustainable Cities Program in Chennai, India.
He has written World Bank policy notes on meeting the Millennium
Development Goals in the urban context and addressing urban poverty.
He is currently engaged in the Bank’s operational work on urban development and the environment and in community-driven development projects in the Bank’s East Asia and Pacific, and the Middle East and North
Africa Regions.
xii
Abbreviations
ACUACAR
ADB
ASMIDAL
BWSSP
DGE
ENSIDER
ESCO
ESMAP
FUNDACOMUN
GDP
GEF
GLE
ICR
IDA
IDB
IFC
LUCPRO
MCGB
MPEC
NGO
OECD
SIDA
SINAPRED
UCRESEP
UNDP
UPD2
URE
Aguas de Cartagena (water and sewerage
company of Cartagena)
Asian Development Bank
Entreprise Nationale des Engrais et Produits
Phytosanitaires
Bombay Water Supply and Sewerage Projects
Direction Generale de l’Environnement
Entreprise Nationale de Sidérurgie
Rnergy service company (Poland)
Energy Sector Management Assistance Programme
Foundation for Community Development and
Municipal Promotion
Gross domestic product
Global Environment Facility
Getlini-Eco Limited
Implementation Completion Report
International Development Agency
Inter-American Development Bank
International Finance Corporation
Liaoning Urban Construction and Renewal Project
Office
Municipal Corporation of Greater Bombay
Municipal District Heating Enterprise
Nongovernmental organization
Organisation for Economic Co-operation and
Development
Swedish International Development Agency
National System for the Prevention, Mitigation and
Management of Disasters (Nicaragua)
Coordinating Unit for Reform of the Public Sector
(Nicaragua)
United Nations Development Programme
Second Urban Development Project (Guinea)
Energy regulatory authority (Poland)
xiii
Executive Summary
This review of the active portfolio of World Bank projects aimed at improving urban environmental quality was carried out during 2002–03 in order to
assess the level of commitment of the institution to urban sustainability. The
review focuses on the contributions of key sectors to urban environmental
improvements, in particular on those belonging to the Infrastructure VicePresidency, and on how projects are contributing to achievement of the
Millennium Development Goals. It also highlights some of the apparent
gaps in current Bank lending in regional, spatial, and thematic terms and
argues for a more comprehensive and holistic approach to urban environmental priorities, which could lead to better-integrated investments.
The Bank corporate strategy on urban development (World Bank 2000a)
addresses the urban environment as part of enhancing urban livability. The corporate environment strategy (World Bank 2001b) states its importance through
its goals of improving the quality of life, improving the quality of growth, and
protecting the quality of regional and global commons. This conceptual underpinning enabled the Bank’s Urban Environment Thematic Group, created in
2002, to expand the brown agenda identified at the 1992 Earth Summit to incorporate several new and emerging concerns. Four broad urban environmental
goals were defined as the expanded brown agenda, drawing on both the environmental and the urban development corporate strategies:
Goal 1: Protect and enhance environmental health in urban areas.
Goal 2: Protect water, soil, and air quality in urban areas from contamination and pollution.
Goal 3: Minimize the urban impact on natural resources at the regional
and global scales.
Goal 4: Prevent and mitigate the urban impacts of natural disasters and
climate change.
Objectives and Methodology of the Portfolio Review
The objectives of the review were to assess the quantity and quality of ongoing investments aimed at improving the urban environment, understand
xiv
EXECUTIVE SUMMARY
xv
the role of the various sectors involved, and assess the policy implications
for the Bank’s future work. Knowledge services—policy advice, technical
assistance, and capacity building—were not reviewed.
The review was based on the recoding of the Bank’s lending operations
by sectors and themes that was instituted in fiscal 2002. It includes projects
with environmental codes as well as projects that do not have such codes
but whose development objectives contribute to meeting the Millennium
Development Goals by reducing the proportion of people without sustainable access to safe drinking water and sanitation or by improving the
lives of slum dwellers.
Basic information came from internal databases; screening of Project
Appraisal Documents and Staff Appraisal Reports was done with the help
of a tailor-made research instrument. This instrument captures basic project and financial data; urban environmental goals targeted; project deliverables; institutional strengthening activities; the roles of local governments,
civil society, and the private sector in project design and implementation;
links with the Millennium Development Goals; the size of cities in which
projects are being implemented; and the monitoring and evaluation indicators being used.
Quantitative Profile of the Urban Environment Portfolio
As of March 31, 2003, 264 operations aimed at improving urban environmental quality were ongoing. In about half of these projects (48 percent),
improving urban environmental quality is the primary development objective. In another 43 percent a project component addresses an urban environmental goal. Nine percent of projects include activities that addressed
an urban environmental goal.
The portfolio, which includes projects approved since 1992, represents
about 20 percent of the Bank’s total active operations. On the basis of the relative weight of the urban environmental components in each project, the
dollar value of the urban environmental investment was estimated at $12.02
billion, or 12.6 percent of the Bank’s total lending commitments. However,
the relatively high level of annual commitments to the urban environment
appears to have declined in 2002 and 2003.
Main Findings
Urban environmental goals targeted: The vast majority of projects address
issues of environmental health in urban areas (goal 1) and protecting
water, soil, and air quality from contamination and pollution (goal 2).
Less than a third focus on minimizing the urban impact on natural
resources at the regional and global scales (goal 3). About 10 percent focus
xvi
EXECUTIVE SUMMARY
on preventing and mitigating urban impacts of natural disasters and climate change (goal 4).
Regional distribution: Projects aimed at improving urban environmental
quality are being implemented in all six Bank regions. Large regional disparities are apparent, however, with investment per urban resident well
below average in the South Asia Region, and above average in the Europe
and Central Asia Regions, and the East Asia and Pacific Region.
Sector contributions: Many sectors are active in the urban environment portfolio,
confirming that improving urban environmental quality is a shared agenda. In
dollar terms, for the Bank as a whole, Water and Sanitation projects represent
about 48 percent of the portfolio, followed by Urban Development (22 percent),
the Environment (17 percent), and Energy (5 percent). The remainder of the
portfolio includes projects from the Transport, Social Protection, Rural
Development, Health, Education, Public Sector Governance, and Financial and
Private Sector Development sectors. More than three-quarters of investments
are managed by Sector Boards that are part of the Infrastructure Vice-Presidency.
Projects in each sector contribute to meeting the urban environmental goals
in different ways:
• Water and Sanitation projects invest mainly in the provision of water
supply and sanitation services; the construction of sewer lines, wastewater treatment plants, and storm water drainage systems; and to some
extent improvements in water quality.
• Urban Development projects provide water supply and sanitation services and invest in sewerage and drainage infrastructure. Slum upgrading operations, solid waste management, and disaster prevention and
management projects constitute other relevant urban operations.
• Environment projects mainly address waste management and reuse,
including toxic and hazardous waste, treatment of effluents, and pollution management; reduction of greenhouse gas emissions; and the phasing out of ozone-depleting substances.
• Energy projects provide lending for energy efficiency, renewable sources
of energy, reduction in greenhouse gas emissions, and district heating
(concentrated in the Europe and Central Asia Region).
• Transport projects mainly address the abatement or prevention of vehicular emissions as part of urban mobility and often provide resources for
air quality monitoring systems.
City size: In terms of number of projects, the portfolio emphasizes small
cities. While about half of the urban population in the developing world
EXECUTIVE SUMMARY
xvii
lives in cities with less than 1 million people, 70 percent of the Bank’s projects are concentrated there. Cities with less than 100,000 inhabitants receive
28 percent of projects, while cities with more than 5 million inhabitants
receive just 10 percent of projects. Large variation is found in the spatial
distribution of urban environmental projects in the Bank’s regions, however, with significant investment in the megacities of East Asia.
Several factors may account for the emphasis on small cities. The institutional complexity of dealing with multiple administrative jurisdictions and
the difficult nature of environmental challenges in larger urban areas could
be deterring investment in megacities. The conventional understanding of
the concentration of poverty in rural areas (where small urban service centers are located) and public sector policies aimed at redressing regional
imbalances could be inducing investment in smaller cities, where urbanization is occurring at a faster pace than in larger cities.
Role of local counterparts: Local governments play a significant role in project design and are directly involved in implementation in 34 percent of
projects. Civil society organizations appear to be involved in project design
and implementation in nearly 20 percent of projects, and the private sector
appears to be participating in 17 percent of operations.
Institutional strengthening: Technical assistance is concentrated on the reinforcement of sector agencies in charge of project implementation (45 percent), on capacity building (65 percent), and on technical and sector studies
(34 percent). Environmental action and management plans, environmental
monitoring and information systems, and environmental public education
activities are supported by 22 percent of projects. Urban environmental strategies at the local level are rarely part of the technical assistance components.
Contribution to meeting the Millennium Development Goals: Projects in the
urban environment portfolio appear to be contributing directly to the
achievement of the Millennium Development Goals, especially to reducing maternal and child mortality (targets 5 and 6), preventing the spread of
malaria and other major diseases (target 8), integrating the principles of
sustainable development into country policies and programs and reversing
the losses of environmental resources (target 9), improving access to safe
drinking water (target 10), and fostering access to improved sanitation and
security of tenure for slum dwellers (target 11).
A recent study by the Bank’s Operations Evaluation Department measured livability in Bank-assisted cities against a group of comparator cities.
The share of households connected to water supply and sanitation was
considerably higher and the share of solid waste discarded in open dumps
considerably lower in Bank-assisted cities, with positive consequences for
EXECUTIVE SUMMARY
xviii
the environmental health of the residents (World Bank 2002c). The contributions of projects are difficult to measure, however, as only two-thirds of
the projects reviewed include environmental indicators. Only one-quarter
include explicit environmental indicators (such as the reduction of pollution loads). The rest measure outputs rather than outcomes. Only 5 percent use quality of life indicators.
Case Studies
Twelve case studies were developed to illustrate the multisector nature of the
urban environment portfolio and the integrated approach needed to address
urban environmental issues (see table). The cases represent typical project
deliverables found in the Bank’s urban environmental work in the five main
sectors (Urban Development, Environment, Water and Sanitation, Energy,
and Transport) but also innovative ones. The case studies were drafted using
public information for the descriptive data, the authors’ subjective statements on the urban environmental aspects of the projects, and the Bank
supervising Task Team Leaders’ judgments on implementation progress.
Case Studies of Projects with Urban Environmental Goals
Project
Project
city
Urban
environmental
goal
Urban
environmental
issues addressed
Water and Sanitation
China: Liaoning
Environment
India: Bombay
Sewage Disposal
Colombia: Cartagena
Water Supply,
Sewerage, and
Environmental
Management
Anshan, Dalian,
Fushun, Benxi,
Jinzhou
Mumbai
1, 2, 3
1, 2
Cartagena
1, 2
Conakry
1, 2
Wastewater
management,
clean technology
Sewage disposal,
sanitation in
slums
Water supply
and sewerage
Urban Development
Guinea: Third
Urban Development
Urban services,
including solid
waste management
EXECUTIVE SUMMARY
xix
Case Studies of Projects with Urban Environmental Goals
Project
RB de Venezuela:
Caracas Slum
Upgrading
Nicaragua: Natural
Disaster Vulnerability
Reduction
Project
city
Urban
environmental
goal
Urban
environmental
issues addressed
Caracas
1
Urban upgrading
Secondary cities
4
Disaster
management
Municipal Solid
Waste Management
(Latvia)
Riga
3
Algeria: Industrial
Pollution Control
Kenya, Tanzania,
Uganda: Lake Victoria
Environmental
Management
Annaba
Solid waste
management,
groundwater
pollution,
greenhouse gas
reduction
Industrial
pollution
Water resources
and coastal
zone
management
Environment
2, 3
Kampala, Mwanza,
Kisumu
2
Krakow,
Skawina
Ulaanbaatar
3
Energy
Poland: Krakow
Energy Efficiency
Mongolia: Improved
Household Stoves
in Urban Centers
1, 2, 3
District heating,
energy efficiency
Indoor and
ambient air
pollution, energy efficiency
Transport
China: Guangzhou
City Center
Transport
Guangzhou
2
Air quality
management
Goal 1: Protect and enhance environmental health in urban areas.
Goal 2: Protect the water, soil, and air quality in urban areas from contamination
and pollution.
Goal 3: Minimize the urban impact on natural resources at the regional and
global scales.
Goal 4: Prevent and mitigate the urban impacts of natural disasters and climate
change.
xx
EXECUTIVE SUMMARY
Critical Areas and Recommendations
The review reveals a significant commitment to improving urban environmental quality. It also identifies some areas in which more may need to
be done:
• The level of investment in South Asia (9 percent of total) is relatively
low given the size of its urban population (20 percent of worldwide
urban population) and the urban environmental challenges the region’s
cities are facing.
• Bank investments seem to favor smaller cities. While their urban environmental needs are important and should be met, the more complex
challenges of larger urban centers and megacities, which will grow in
size and number in the coming decade, will require more assistance and
investments.
• Investments aimed at indoor air quality improvements are low, despite
the significant contribution of poor indoor air quality to the total burden
of disease worldwide. Investments in ambient urban air quality, recognized by the Bank as an important environmental priority, are also low.
• Pollution from small and medium-size enterprises and from the semiindustrial activities of the informal sector is unaddressed in the portfolio, despite its recognized impact on environmental health, including
the direct effects on workers in these industries.
Some of these investment patterns may reflect the fact that Bank projects occur as the result of a dialogue with the borrowing government on its
own policies and perceived priorities and those of the Bank. Bank investments cannot occur without the expressed demand from client countries.
Moreover, assessing the Bank’s total commitment to the urban environment—including policy advice, technical assistance, and capacity building that complement its financial support, which were not reviewed—could
show a different pattern of involvement. Finally, projects that are in the
pipeline may be addressing one of the review’s key recommendations: that
the expanded brown agenda be fully integrated in the Bank’s lending operations. This expanded agenda would include mitigation of and adaptation
to climate change, especially in coastal cities threatened by sea-level rise,
assuming that client governments want to borrow for such purposes or
that international grant resources are available.
A more holistic approach to meeting urban environmental challenges
in a given city could be achieved if the design of sector operations were
preceded by a comprehensive up-stream diagnostic exercise, in which a
multisector Bank team, in collaboration with client counterparts, would
prepare a Rapid Urban Environmental Profile highlighting the city’s pri-
EXECUTIVE SUMMARY
xxi
orities and the links among the different environmental challenges. This
relatively low-cost effort would lay the groundwork for a more integrated
selection of the issues to be addressed by Bank lending and for the preparation of higher-quality sector operations. This approach has been endorsed
by the Environment, Urban Development, and Water and Sanitation Sector
Boards.
I
Main Findings of the
Portfolio Review
1
Objectives of the Urban
Environment Portfolio Review
This review was designed and carried out to fill a knowledge gap in the
understanding of the Bank’s current commitments toward improving the
urban environment, commonly known as brown agenda issues. Partial
reviews had been carried out before—as part of the Urban Development
or the Environment sector portfolios, for example—but no comprehensive
effort had been made to measure overall investments in Bank project activities designed to improve the urban environment. The key objectives of the
research project were therefore defined as the following:
• to assess the quantity and the quality of Bank investments in improving the urban environment in the cities of its client countries
• to assess the roles of the sectors involved and their complementarities
• to make recommendations for future Bank work in this area
The portfolio review was also conceived as a vehicle to facilitate exchanges
among different infrastructure sectors and between the staff of the
Infrastructure and Environment networks, which share responsibility for the
urban environmental agenda.
The review covers some new and emerging urban environmental issues,
such as those related to the mitigation of and adaptation to climate change.
It is hoped that this report will stimulate broader discussion of their importance as part of the urban environmental agenda.
The review does not and cannot provide evidence of the impact of the
projects reviewed, because they are ongoing operations at different stages
of implementation. Rather, the review records and interprets the projects’
declared purposes at the completion of the design and approval stage.
Case studies of 12 operations provide lessons learned from their various stages of implementation. These case studies reveal the complex challenges of translating into practice the intent, objectives, and physical and
3
4
URBAN ENVIRONMENT AND INFRASTRUCTURE
institutional deliverables of these projects. Project completion will be followed by mandatory joint reporting by the Bank and the borrower and in
some cases by external evaluations. None of these activities is part of the
scope of work of this review.
2
The World Bank’s Commitment
to Improving the Quality of the
Urban Environment
The World Bank’s direct involvement in urban environmental management began in the early 1990s, when it contributed to the 1992 United
Nations Conference on Environment and Development, also known as the
Earth Summit, in Rio de Janeiro. Since then the Bank has been active in
adopting the brown agenda and translating it into action. During the 1990s
that agenda was defined as including all environmental externalities of
human and economic activities that negatively affect human health and
natural resources in and around urban areas.
Of course, many of the Bank’s lending operations before 1992 focused
on developmental objectives then considered to be part of the brown agenda,
such as providing water supply and sanitation, upgrading slum neighborhoods, and introducing industrial pollution management. At the time, however, these activities were classified under separate sector categorizations.
Since the Earth Summit the World Bank’s work in support of the urban
environment has deepened and broadened in scope. The 1994 conference
“The Human Face of the Urban Environment” was an important milestone,
followed by the release of the Pollution Prevention and Abatement Handbook
1998 (World Bank 1999b) and the Greening Industry report (World Bank
2000b).
The Bank’s commitment to improving urban environmental quality can
be tracked in several areas of the institution’s activities. First, under the
guidance of the Environmentally and Socially Sustainable Development
Vice-Presidency, the Bank has placed increased importance on sustainable
development throughout the institution—an emphasis that goes hand in
hand with the Bank’s mission of reducing poverty. Consequently, over the
past 10 years, the central departments of the Infrastructure Vice-Presidency
(Energy, Urban Development, Transport, and Water and Sanitation) have
mainstreamed environmental sustainability and poverty reduction considerations into their corporate strategies and policy guidelines, which in
turn influence the design of the Bank’s projects.
Second, the Bank has given new prominence to urban environmental
issues in the lending operations designed and carried out by its six regional
5
6
URBAN ENVIRONMENT AND INFRASTRUCTURE
Vice-Presidencies. The technical work leading to the preparation and particularly implementation of Bank loans, credits, and grants contributes to
improving the urban environment in the cities of the developing world.
This work also increases the ability of local institutions to plan additional
investments, deliver urban environmental services, and protect human
health and natural resources in urban areas, especially for the poorest segments of the urban population. These lending operations are the object of
the portfolio review and of this volume.
Third, in addition to lending operations that support the environment in
urban areas, an integrated system of corporate safeguards applied to the
design and preparation of all projects includes an environmental impact
assessment to gauge, minimize, and remediate possible negative externalities of all Bank investments. The Regions are also responsible for a steady
work program of analytical work that has, over the years, improved the
understanding of the challenges facing the environment of specific cities
of the Bank’s client countries.
Fourth, the Bank’s Development Economics Vice-Presidency, which is
in charge of the institution’s main research programs, including production of the annual World Development Report, has developed an important
research and dissemination program on pollution management that integrates the urban environmental agenda. The World Bank Institute, the VicePresidency in charge of learning and capacity building, has included urban
environmental training programs as part of its curriculum for nearly a
decade, disseminating these programs face to face and through distance
learning approaches.
In addition to these four areas of work, several regional and global programs have been created by the World Bank in partnership with UN agencies, bilateral development agencies in and governments of OECD countries,
municipal governments, private companies, and civil society organizations
to provide free and timely assistance to cities in developing countries. These
programs support the improvement of urban environmental quality, provide technical assistance to local institutions, foster a better understanding
of local challenges, and facilitate exchanges among researchers, practitioners, and policymakers in this field. Programs include the following:
• the Water and Sanitation Program, which over the past 25 years has
grown to become a major international partnership providing policy
advice and technical expertise on water supply and sanitation issues in
developing countries
• the Urban Management Program, a global initiative started in 1989 that
has generated significant innovative research on the urban governance
aspects of development, including important contributions on urban
environmental management
THE WORLD BANK’S COMMITMENT TO URBAN ENVIRONMENTAL QUALITY
7
• the Energy Sector Management Assistance Programme, established in
1993, which provides grants for projects and other initiatives aimed at
mainstreaming energy efficiency and the use of renewable energies and
at minimizing the negative environmental externalities of energy use,
particularly fossil fuel consumption
• the Metropolitan Environmental Improvement Program, established in
1994, which facilitates strategic planning exercises, in-depth analyses of
major urban environmental challenges, and development of investment
scenarios in major metropolitan areas in South and East Asia
• the Clean Air Initiative, a global program focused on improving urban
air quality in the cities of the developing world, which has been providing technical assistance, conducting learning activities, supporting
strategic planning, and disseminating knowledge in Latin America, SubSaharan Africa, and South and East Asia since 1998
• the Cities Alliance, created in 1999, which provides financial resources
and technical assistance to help central and local governments in developing countries set up slum upgrading programs and develop city development strategies
The Urban Environment Thematic Group, an affiliation of World Bank
staff, was created in early 2002 by the Urban Development Department. It
includes Bank staff from many sectors, including Urban Development,
Water and Sanitation, Transport, Energy, and the Environment. The group’s
main purpose is to ensure that the linkages between all the different streams
of Bank work that relate to the urban environment—from corporate strategies to lending operations to nonlending activities—are brought to bear in
a cohesive manner. The group also fosters cross-sector collaboration among
the various infrastructure sectors and between the Infrastructure and the
Environment networks.
The first major task of the Thematic Group was to revisit the brown
agenda of the early 1990s and to adapt it to include new and emerging challenges. To do so, it turned to two key corporate strategies endorsed by the
Bank’s Board of Directors: the urban strategy put forth in Cities in Transition:
The World Bank Urban and Local Government Strategy (World Bank 2000a)
and the environment strategy put forth in Making Sustainable Commitments:
An Environment Strategy for the World Bank (World Bank 2001b).
The urban strategy articulates a vision of livable cities as a fundamental
prerequisite, together with competitiveness, good management, and financial sustainability, for successful urban development. It addresses the importance of a healthful urban environment and the need for investments in urban
transport, water, and sanitation to address environmental issues with an
immediate impact on human health (air pollution from lead and particulates, and waterborne diseases). It also endorses policies that promote effi-
8
URBAN ENVIRONMENT AND INFRASTRUCTURE
ciency in the use of water, energy, and waste disposal and that transfer to the
polluter wherever possible the costs of negative environmental externalities.
The urban strategy also recommends involvement by local governments and
other local actors in participatory urban environmental management.
The environment strategy states three broad goals of the Bank’s work:
improving the quality of life, improving the quality of growth, and protecting the quality of the regional and global commons. Clear threats are
identified in all three areas that are related to the urban environmental
agenda: water-related diseases, exposure to indoor and urban air pollution
and toxic wastes, the vulnerability of urban areas to natural disasters and
to the local impacts of global climate change, the tradeoffs between investing in economic growth and protecting the (urban) environment, the tradeoffs between local and regional pollution abatement and taking action on
global environmental change and its local impacts, and the regional and
global damage to human health and natural resources caused by the
spillover of pollution originating in urban areas.
Following extensive consultation, the Thematic Group formulated the following urban environmental goals:
Goal 1:
Goal 2:
Goal 3:
Goal 4:
Protect and enhance environmental health in urban areas.
Protect water, soil, and air quality in urban areas from contamination and pollution.
Minimize the urban impact on natural resources at the regional
and global scales.
Prevent and mitigate the urban impacts of natural disasters
and climate change.
These goals constitute the expanded brown agenda for the first part of the
twenty-first century, framing the Bank’s purpose in this area. They also
constituted the basis for reviewing all active lending operations in the
Bank’s portfolio that contribute to the environmental quality in cities.
3
Portfolio Review Methodology
This portfolio review covers the Bank’s active lending operations as of
March 31, 2003 and includes Bank-executed Global Environment Facility
(GEF) grants. It does not include closed operations or operations that are still
under preparation nor does it include nonlending activities, such as research
or the outputs of the regional and global initiatives that the Bank promotes
with other partners.
The sources of information used were the Bank’s Business Warehouse,
an internal database containing important statistics on investment projects;
Imagebank, a Web-based storehouse of information on projects and other
documentation, which is accessible to the public; and the Project, Policies,
and Strategies database, which details the basic features of investment projects, including their sector and theme codes. The review is based on information on project design at entry and does not include changes to project
design made during implementation nor the impact of projects. The authors
relied on the accuracy of the data in the institutional databases they used;
they remain responsible for the analysis and interpretation of those data.
Before 2002, Bank operations were coded only by the Sector Board that
had primary responsibility for implementing the investments. All Bank
operations were recoded by sectors and themes in fiscal year 2002. The
recoding process involved assigning sector codes based on the sector or
sectors of the economy receiving Bank investments and assigning theme
codes reflecting the development objectives of the operation. All active
lending operations initiated since 1990 were given up to five sector codes
and up to five theme codes. The year 1990 was chosen as the base year in
order to measure progress toward the achievement of the Millennium
Development Goals.
9
URBAN ENVIRONMENT AND INFRASTRUCTURE
10
Table 3-1. World Bank Sector and Theme Codes Directly
Relevant to the Urban Environment
Sector codes
Theme codes
Energy and Mining
LA: District heating and energy
efficiency services
LE: Renewable energy
LZ: General energy
Water, Sanitation, and Flood Protection
WD: Flood protection
WA: Sanitation
WS: Sewerage
WB: Solid waste management
WC: Water supply
WZ: General water, sanitation
and flood protection
Transportation
TA: Roads and highways
TZ: General transportation
Urban Development
71: Access to urban services for the
poor
72: Municipal finance
73: Municipal governance and institution building
74: Other urban development
Environment and Natural Resources
Management
81: Climate change
82: Environmental policies and institutions
84: Pollution management and environmental health
Social Protection and Risk Management
52: Natural disaster management
56: Other social protection and risk
management
To determine which active operations could be considered as improving urban environmental quality, the authors identified the three sector
and three theme codes that had direct causal links with the four urban environmental goals (table 3-1). They then created a list of project activities
included as part of such operations and classified those activities in terms
of the four urban environmental goals (table 3-2). In this manner, a dataset
of 264 projects was culled from the Bank’s 1,372 active lending operations
as of March 31, 2003.
Research Instrument
Project Appraisal Documents and Staff Appraisal Reports detail the development objectives, strategic choices, project design, components and costs,
safeguards, output indicators, and other relevant features of Bank projects.
With the help of a tailor-made research instrument, all 264 Project Appraisal
Documents and Staff Appraisal Reports were screened to cull relevant information, including information about their urban environmental features.
Those features include basic project and financial data; sector and theme
PORTFOLIO REVIEW METHODOLOGY
11
codes; urban environmental goals targeted; project deliverables; institutional strengthening activities; the roles of local governments, communities, and the private sector in project implementation; links with the
Millennium Development Goals; the size of cities in which the projects are
being implemented; and the monitoring and evaluation indicators being
used. Review of each document took about one and a half hours on average.
Table 3-2. Project Activities Related to Urban Environmental Goals
Goal 1: Protect and
enhance environmental
health in urban areas
Extension of water supply
to unserved areas and
populations
Provision and augmentation of city- and townwide water supply systems
Goal 2: Protect water, soil,
and air quality in urban areas
from contamination
and pollution
Construction and extension
of trunk sewerage systems
Provision of and improvement
of district heating systems
Construction and extension
of trunk storm water
drainage systems
Promotion of efficiency in
energy generation and transmission (including efficiency
improvement in thermal
power plants)
12
Provision of sanitation
services, including
installation of toilets
Installation of municipal
wastewater, sullage, and
septage collection and
treatment systems
Provision of solid waste
collection services at
neighborhood level
Provision of access to
sewerage systems at
household level
Construction of drains
at neighborhood level
Goal 3: Minimize the
urban impact on
natural resources at the
regional and global scales
Goal 4: Prevent and mitigate
the urban impacts of
natural disasters and
climate change
Assistance in emergency
reconstruction following natural
disasters (floods, cyclones,
land slides, volcanic eruptions, etc.)
Provision of support and
assistance to people displaced by
disasters
Installation of industrial
effluent treatment and
pretreatment plants
Formulation and promotion
of disaster prevention
and mitigation plans
Installation of industrial
liquid wastewater
collection systems
Reduction of emissions of
green-house gases
Construction of barriers against
tidal waves and sea-level rise
Disposal and management
of municipal solid waste
Phasing out of ozone-depleting
substances
Consolidation of unstable slopes
and vulnerable infrastructure
Disposal and management
of hospital waste
Promotion of renewable energy
sources (wind, solar, other)
Reduction of indoor air
pollution
Reduction of noise
pollution
Disposal and management
of industrial and hazardous
waste
Control and reduction of
vehicular emissions
Control and reduction of
industrial emissions and
air pollutants
Promotion of waste minimization and cleaner technologies
Promotion of waste reduction,
reuse, recycling, and composting
Promotion of energy efficiency
in industrial and production
processes
Protection of watersheds
Installation of air pollution
monitoring systems
Promotion of regional environmental conservation
13
Promotion of nonmotorized
transportation systems
Promotion of efficient public
transport systems
Conversion to and provision
of cleaner fuel for automobiles
Note: Projects often include activities related to multiple urban environmental goals.
4
Profile of the Portfolio
Two-hundred and sixty-four operations—nearly 1 out of 5 of the Bank’s 1,372
active operations—are helping improve the quality of the urban environment. Total investment on the urban environment totals US$12.02 billion, or
12.6 percent of the Bank’s current lending commitments as of March 31, 2003.
Trends in the Portfolio
The Bank’s portfolio of active urban environmental projects spans a period
of 11 years, from 1993 to 2003, based on the year of approval by the Bank’s
Board of Directors (figure 4-1). The small number of projects in the early
years reflects the fact that older operations have closed and exited the portfolio. In contrast, the drop in the number of projects approved in 2002 and in
the first three quarters of 2003 seems to point to a relative decline in investment lending related to urban environmental quality, as the total number of
Bank projects approved declined in this period (from 36 in 2000 to 35 in 2001,
24 in 2002, and 9 in 2003). This decline is shared by all the sectors contributing to the urban environment portfolio, with the exception of Urban
Development, which remained stable, with six new projects in 2001 and 2002.
Level of Investment in Urban Environment
Based on the level of focus on the urban environment of its development
objectives and the allocation of its financial resources, each project was classified into one of three categories (figure 4-2):
• Type 1: Projects with a primarily urban environmental focus in their
development objectives and in which more than 75 percent of lending is
aimed at improving the quality of the urban environment
• Type 2: Projects in which one or more component addresses an urban
environmental issue but whose main project focus is on other developmental goals
14
Figure 4-1. Active World Bank Projects Contributing to Improving the Urban Environment, 1993–2003
US$ millions
Number of projects
2,000
80
1,750
70
1,500
60
1,250
50
39
1,000
40
35
30
15
23
500
250
Investment
Number
of projects
36
29
750
0
37
24
20
20
8
4
9
1993
266
1994
715
1995
1,536
1996
1,744
4
8
29
23
1997
1,044
1998
1,405
1999
1,226
2000
1,864
2001
1,048
2002
471
2003
704
20
39
37
36
35
24
9
Fiscal year of approval
10
0
URBAN ENVIRONMENT AND INFRASTRUCTURE
16
Figure 4-2. Classification of Projects by Level of Urban
Environment Content
Number of projects
(total = 264)
Level of investment
(in US$ millions;
total = US$12.02 billions)
US$1,379
12 projects
4%
12%
US$137
1%
76 projects
29%
176 projects
67%
US$10,507
87%
Type 1: Projects devoted primarily to urban environment
Type 2: Projects that include urban environment components
Type 3: Projects that include urban environment activities
• Type 3: Projects whose main thrust and components are not related to
the urban environment but that include some activities that improve the
urban environment
Regional Distribution
The East Asia and Pacific Region has the largest share of urban environmental lending, followed by Europe and Central Asia and by Latin America
and the Caribbean (figure 4-3).
On average the Bank invests US$6.89 in improving urban environmental quality per urban capita (figure 4-4). The highest per urban capita investment is in Europe and Central Asia (US$8.57), where spending is almost
three times as high as in South Asia (US$3.19). Investment on the urban
environment per urban capita is slightly above average in Europe and
Central Asia and in East Asia and Pacific; about average in Latin America
and the Caribbean, the Middle East and North Africa, and Sub-Saharan
Figure 4-3. Urban Population and Investment in Improving the Urban Environment, by Region
Urban population by region, 2002
(thousands)
17
Middle East
and North Africa
162,454
9%
South Asia
352,290
20%
Latin America
and the
Caribbean
331,345
19%
Sub-Saharan
Africa
193,227
11%
Europe and
Central Asia
259,616
15%
East Asia
and
Pacific
445,615
26%
Investment in the urban environment
by region (US$ thousands)
South Asia
$1,122,572
9%
Middle East
and North Africa
$1,284,522
11%
Latin America
and the
Caribbean
$2,303,016
19%
Sub-Saharan
Africa
$ 1,406,805
12%
Europe and
Central Asia
$2,225,443
19%
East Asia
and
Pacific
$3,681,438
30%
URBAN ENVIRONMENT AND INFRASTRUCTURE
18
Figure 4-4. World Bank Investment on the Urban Environment
per Urban Capita, by Region
US$
10
8
7.28
8.26
8.57
7.91
6.95
6
4
Bank average
US$6.89
3.19
2
0
SubSaharan
Africa
East Asia
and
Pacific
Europe
and
Central
Asia
Latin Middle East
America
and
and the
North
Caribbean Africa
South
Asia
Per urban capita urban environmental investment
Bank average per urban capita urban environmental investment
Africa; and well below average in South Asia, where 20 percent of the urban
population lives but only 9 percent of investments in the urban environment are made.
These per urban capita figures do not take into account price differentials
across regions, however. The same water treatment plant, for example, may
cost much more in Europe and Central Asia than it does in Sub-Saharan
Africa or South Asia. They also fail to reflect the fact that in some regions
the Bank may be having a larger impact by promoting policy reforms or
guiding the investment of national budgetary resources than it does through
its lending operations. In any case, the patterns of investment reflect the
priorities that client governments assign to different sectors.
Nevertheless, the need for more investment in South Asia is evident,
given the levels of poverty, pollution, and environmental degradation there.
A significant decline in urban lending in this region over the past decade
has contributed to below-average investment on the urban environment.
Project Focus on Urban Environmental Goals
The major focus of the projects reviewed is on the provision of local environmental infrastructure and services, which contribute to the protection
and enhancement of environmental health. However, several projects con-
PROFILE OF THE PORTFOLIO
19
Figure 4-5. Goals of Projects Contributing to Improving Urban
Environmental Quality
Number of projects
250
225
179
(68%)
200
175
156
(59%)
150
150
(57%)
125
75
(28%)
100
75
22
(8%)
50
25
0
Goal 1
Goal 2
Goal 3
Goal 4
Institutional
strengthening
tribute to multiple urban environmental goals (figure 4-5). Projects aimed
at providing or extending adequate primary-level waste collection services
to unserved urban areas, for example, also tend to address the sustainable
disposal of solid waste management, thus protecting natural resources in
urban areas from contamination and pollution.
Urban Environmental Goal 1
The provision of basic environmental services is central to achieving and maintaining quality of life in urban areas. Some 156 projects (59 percent) address
environmental issues at the neighborhood level, by providing primary-level
infrastructure and services (such as safe water supply, sanitation, drainage,
solid waste collection services, and access to sewerage systems, especially for
the urban poor) and by reducing indoor air pollution and noise pollution.
Urban Environmental Goal 2
The concentration of population and economic activities in urban areas generates waste and pollution; affects the quality of natural resources (air, water,
soil, and public spaces); and leads, in the absence of adequate infrastructure
and services, to the deterioration of living conditions. Some 150 projects (57
20
URBAN ENVIRONMENT AND INFRASTRUCTURE
percent) provide infrastructure and services in pollution control and waste
management, environmental monitoring, and other environmental services.
Urban Environmental Goal 3
The concentration of population and economic activities in urban areas
also affects natural resources at the regional and global scales. The discharge of untreated industrial effluents, for example, pollutes rivers downstream; the use of coal in district heating systems has regional and global
impacts. To minimize these impacts, 75 projects (28 percent) provide for
energy conservation and efficiency (in generation, transmission, and use);
improved district heating systems; collection and treatment of liquid industrial effluents; reduction of greenhouse gases and ozone-depleting substances; promotion of renewable energy; waste minimization; and watershed
protection and management.
Urban Environmental Goal 4
Urban areas across the world are affected by a growing number of natural
disasters of increasing intensity and cost (see Walter 2002 and Bigio 2003).
Cities and towns are also susceptible to the interrelated impacts of climate
change and the rise in sea level caused by global warming. Some 22 projects
(8 percent) support activities aimed at preventing and mitigating the urban
impacts of natural disasters and climate change. These activities include
emergency reconstruction, disaster prevention measures and plans, construction of barriers against sea waves and the rise in sea level, and consolidation of unstable slopes and vulnerable infrastructure.
Institutional Strengthening and Technical Assistance
Addressing urban environmental issues demands appropriate institutional
structures; strategic and sector planning; policy formulation and reform;
environmental tools and methods (action management plans, audits, monitoring and information systems, and education and awareness campaigns);
support to civil society; private sector development; and capacity building. The fact that urban environmental issues are addressed by many sectors adds complexity and heightens the need for addressing these
institutional and capacity issues through development projects. Some 179
projects (68 percent) aim to strengthen institutions and build capacity.
The urban environmental goals of each project are correlated with the
level of urban environmental content (table 4-1). Among projects devoted
primarily to improving the urban environment (type 1), for example, the
highest percentage of projects focus on urban environmental goal 3.
Table 4-1. Projects by Urban Environmental Goal and Level of Urban Environmental Content
Type 1
(primarily urban
environmental)
Type 2
(includes urban
environmental components)
Type 3
(includes urban
environmental activities)
Total
Bank-wide
Goal 1: Protect and enhance
environmental health in urban areas
108
(69%)
39
(25%)
9
(6%)
156
(100%)
Goal 2: Protect water, soil, and air
quality in urban areas from
contamination and pollution
103
(69%)
43
(29%)
4
(3%)
150
(100%)
Goal 3: Minimize urban impact on
natural resources at regional and
global scales
65
(87%)
9
(12%)
1
(1%)
75
(100%)
Goal 4: Prevent and mitigate urban
impacts of natural disasters and
climate change
14
(64%)
7
(32%)
1
(5%)
22
(100%)
Urban environmental goal
21
5
Sector Contributions to the
Portfolio
The cross-sectoral nature of urban environmental issues and the integrated
approach needed to address them are reflected in the sector composition
of the Bank’s urban environment portfolio. The urban environmental
agenda is shared by many sectors, including Water and Sanitation, Urban
Development, Energy, Transport, and the Environment (figure 5-1). Rural
development, social protection, private sector development, education,
health, public sector governance, and the financial sector also contribute
to this portfolio, albeit marginally.
More than three-quarters (79 percent) of urban environmental investment is contributed by the Infrastructure Vice-Presidency (Water and
Sanitation, Urban Development, Energy, and Transport), with almost half
(48 percent) of all investment in the Water and Sanitation sector.
Investments in the Water and Sanitation, Urban Development, and
Environment sectors are larger than the average urban environmental
investment, because most of these projects are primarily type 1 projects
(table 5-1). The average urban environmental investment per project in
the Water and Sanitation (US$67.4 million) and Urban Development
(US$47.3 million) sectors is larger than the average Bank investment in
the urban environment (US$45.5 million). In contrast, Energy sector projects tend to be much smaller than average (US$26.8 million). Transport
sector projects are also smaller than average (US$10.3 million), as most
are type 2 or type 3 projects.
In the five main sectors, urban environmental projects represent 44
percent of all active projects (table 5-2). These investments account for
just one-fourth of total commitments, however. The level of investment
varies across sectors. In the water supply and sanitation sector, 63 percent of projects and 96 percent of commitments are part of the urban environment portfolio, given the “lumpiness” of these investments. In the
other main sectors, the percentage of urban environmental investments
is smaller than the percentage of projects.
22
Figure 5-1. Number of Urban Environmental Projects and Level of Investment, by Sector
Level of investment
(US$ millions)
Number of urban
environmental projects
Other
12 (5%)
23
Social protection
12 (5%)
Rural development
4 (2%)
Water and
sanitation
85 (32%)
Transportation
$237 (2%)
Rural development
Social protection
$409 (3%)
$151 (1%)
Energy
Other
$617 (5%)
$134 (1%)
Transportation
23 (9%)
Environment
$1,912 (16%)
Energy
23 (9%)
Environment
45 (3%)
Urban development
60 (23%)
Urban development
$2,836 (24%)
Water and sanitation
$5,727 (48%)
Table 5-1. Projects by Sector and Level of Urban Environmental Content
(number of projects, except where otherwise indicated)
Sector
24
Water and Sanitation
Urban Development
Environment
Energy
Transport
Other sectors
Bank-wide
Average urban
environmental
investment
in project ($US
millions)
67.4
47.3
42.5
26.8
10.3
24.8
45.5
Type 1
(primarily
urban
environmental)
79
35
40
17
1
4
176
Type 2
(includes urban
environmental
components)
Type 3
(includes urban
environmental
activities)
6
22
5
5
20
18
76
0
3
0
1
2
6
12
Number of projects
85
60
45
23
23
28
264
Table 5-2. Number of Projects and Level of Urban Environmental Investment, by Sector
Sector
Water and Sanitation
Urban Development
Environment
Energy
Transport
Total
Total number
of projects
in the sector
96
70
61
89
159
475
Total
commitments
under the sector
(US$ millions)
5,979
5,062
2,792
9,030
18,589
41,452
Number of
urban
environmental
projects
60
60
45
23
23
211
Urban
environmental
investment
(US$ millions)
5,727
2,836
1,912
617
237
11,329
Percentage
of urban
environmental
projects
Percentage of
urban
environmental
investment
63
86
74
26
14
44
96
56
68
7
1
27
SECTOR CONTRIBUTIONS TO THE PORTFOLIO
25
Table 5-3. Distribution of Urban Environmental Investment
across Bank Regions
(percent)
Sector
Water and
Sanitation
Urban
Development
Environment
Energy
Transport
Other
Europe Latin
Middle
Sub- East Asia
and America East and
Saharan and
Central and the North South
Africa Pacific
Asia Caribbean Africa
Asia
Bankwide
49
57
20
52
53
55
48
34
2
5
6
3
10
17
1
2
13
40
15
21
0
3
17
26
*
2
3
31
14
*
*
2
28
13
2
2
*
24
16
5
2
6
* Less than 1 percent.
Regional Distribution of Urban
Environmental Investment
Water and Sanitation represents the largest share of regional urban environmental investment in East Asia and Pacific, and the smallest share in
Europe and Central Asia (table 5-3). Urban Development represents the
largest share in Europe and Central Asia and the smallest share in East Asia
and Pacific. Environment represents the largest share in Latin America and
the Caribbean and the smallest share in Sub-Saharan Africa. Energy has
the largest share in Europe and Central Asia and the smallest share in Latin
America and the Caribbean and in the Middle East and North Africa.
Transport has the largest share in Sub-Saharan Africa and the smallest share
in Europe and Central Asia, where no projects are in place. Other sectors contribute 5.8 percent of total urban environmental investment across the
regions.
Sector Contribution to Urban Environmental Goals
While most projects under review target urban environmental goals 1 and
2, the picture varies across sectors (table 5-4). Water and Sanitation and
Urban Development projects concentrate on urban environmental goals 1 and
2, Environment projects contribute mainly to goals 2 and 3, Energy projects
focus on goal 3, and Transport projects focus on goal 2.
Table 5-4. Urban Environmental Goals Addressed, by Sector
(percent)
Urban environmental goal
Water and
Sanitation
Urban Environment
Energy
Transport
Other
Bank-wide
26
Goal 1: Protect and enhance environmental
health in urban areas
87
72
20
17
26
71
59
Goal 2: Protect water, soil, and air quality in
urban areas from contamination and pollution
68
60
56
22
65
39
57
Goal 3: Minimize the urban impact on natural
resources at regional and global scales
16
7
71
87
9
11
28
Goal 4: Prevent and mitigate urban impacts
of natural disasters and climate change
Total number of projects
5
17
2
0
17
11
8
85
60
45
23
23
28
264
SECTOR CONTRIBUTIONS TO THE PORTFOLIO
27
Water and Sanitation
Water and Sanitation projects constitute the largest share of operations in
the active urban environment portfolio, with 85 projects and 48 percent of
urban environmental investment (figure 5-2). Of these projects, 93 percent
are classified as type 1 projects (that is, the project is primarily devoted to
improving the urban environment).
Water and Sanitation investments are significant in all six Bank regions.
Investment is largest in East Asia and Pacific, where active commitments
exceed US$2 billion. These investments represent the single largest cohort
of investments reviewed. Water and Sanitation operations focus largely on
achieving urban environmental goals 1 and 2, with some projects contributing to the attainment of goal 3.
More than half of the projects reviewed include components on augmenting water supply (63 projects), municipal wastewater treatment (56
Figure 5-2. Urban Environmental Projects in the Water and
Sanitation Sector, by Region
Number of
projects
20
US$ millions
2,500
2,000
16
1,500
12
1,000
8
500
4
0
SubEast Asia
Saharan
and
Africa
Pacific
Investment
Number
of projects
Europe
Latin
and
America
Central and the
Asia Caribbean
Middle
East and
North
Africa
0
South
Asia
694
2,093
454
1,196
678
612
16
19
15
19
11
5
28
URBAN ENVIRONMENT AND INFRASTRUCTURE
projects), extending water supply (43 projects), or constructing or extending trunk sewerage systems (43 projects). More than a quarter of the projects reviewed include components on providing access to sewerage systems
(27 projects) or sanitation (22 projects).
These numbers reveal the focus of Water and Sanitation investments on
providing trunk infrastructure for the supply of clean drinking water and
the disposal and treatment of wastewater. Bank investments are also targeting expansion of service provision, by augmenting water supply,
improving sanitation, and increasing the number of connections to sewerage lines.
Nine projects provide water quality monitoring, more than half of them
in East Asia and Pacific. Components of these projects overlap with components of projects in the Environment sector. Nine other projects introduce water conservation measures. Four of these projects are in the Middle
East and North Africa.
Ten Water and Sanitation projects provide solid waste collection and
eight provide solid waste disposal and management, establishing important linkages between different aspects of environmental services delivery.
Nine of the solid waste collection and seven of the solid waste disposal and
management projects are in East Asia and Pacific. Four other projects in
that region focus on waste minimization and the use of clean technologies.
All three projects that are providing waste reuse and recycling are in the
Middle East and North Africa, as are the two projects providing efficiency
in energy generation related to water supply. Seven projects provide trunk
storm-water drainage infrastructure, another important aspect of citywide
environmental management, four of which are in East Asia and Pacific.
Eight projects provide industrial effluents treatment, six of which are in
East Asia and Pacific.
Three case studies exemplify Water and Sanitation sector projects aimed
at improving urban environmental quality. The Liaoning Environment
Project (China) aims to protect the water resources of Liaoning Province,
while improving environmental protection, water pollution control, and
wastewater and solid waste management and introducing air pollution
control and cultural assets management. The Bombay Sewage Disposal
Project (India) focuses on enhancing the provision of sewerage services,
by introducing direct charges to beneficiaries, and on improving the health
and environmental conditions in the metropolitan area, including those of
slum dwellers. The Cartagena Water Supply, Sewerage, and Environmental
Management Project (Colombia) aims to improve water and sewerage services and the sanitary conditions of the city’s poorest people, facilitate the
environmental clean-up of water bodies surrounding the city, and improve
the sustainability of water and sanitation services through increased private sector participation.
SECTOR CONTRIBUTIONS TO THE PORTFOLIO
29
Urban Development
Urban Development projects constitute the second-largest share of operations in the active urban environment portfolio, with 60 projects and 24
percent of total urban environmental investments (figure 5-3). Only 58 percent of the Urban Development projects reviewed are classified as primarily
urban environment (type 1) investments. Some 37 percent of the projects
reviewed have urban environment components (type 2); 5 percent include
some urban environmental activities (type 3).
Urban Development investments are present in all six Bank regions.
Investment is largest in Europe and Central Asia, where active commitments total almost US$900 million. Operations focus largely on achieving
urban environmental goals 1 and 2. Several projects target goal 4.
More than one-third of the projects reviewed include components on
extending water supply (27 projects), collecting solid waste (24 projects),
providing sanitation (23 projects), improving trunk storm-water drainage
(23 projects), disposing of and managing solid waste (21 projects), and
Figure 5-3. Urban Environmental Projects in the Urban
Development Sector, by Region
Number
of projects
20
US$ millions
2,500
2,000
16
1,500
12
1,000
8
500
4
0
0
SubEast Asia
Saharan
and
Africa
Pacific
Investment
Number
of projects
Europe
Latin
and
America
Central and the
Asia Caribbean
Middle
East and
North
Africa
South
Asia
482
365
892
385
398
313
18
8
8
8
12
6
30
URBAN ENVIRONMENT AND INFRASTRUCTURE
building drains and drainage networks (20 projects). More than a quarter
of the projects reviewed include components on augmenting water supply
(18 projects), constructing trunk sewerage systems (17 projects), improving municipal wastewater treatment (16 projects), and providing access to
sewerage systems (15 projects).
These numbers confirm the focus of Urban Development operations on
providing basic urban environmental services, with priority given to secondary and tertiary infrastructure networks for water and sanitation. These
priorities coincide with the sector’s policy focus on low-income informal settlements and slum upgrading. Six operations finance erosion control works
and are related to stabilizing such neighborhoods. A significant number of
investments are also being made in trunk infrastructure and wastewater
treatment plants.
Many projects provide solid waste collection, usually including investments in solid waste disposal and management (sanitary landfills). Three
projects in East Asia and Pacific support waste reuse and recycling, and
three finance hazardous waste management. Solid waste management
appears to be fully shared between the Urban Development and Environment
sectors.
Of significance are the 10 operations providing disaster mitigation measures. The two loans to Turkey in this area represent 20 percent of active
commitments for Urban Development in this portfolio and account for the
disproportionate share of investments going to Europe and Central Asia.
Four of the 10 disaster mitigation operations are in this region. Related
operations include seven projects that provide disaster prevention plans,
three of which are in Europe and Central Asia, and three projects that finance
emergency reconstruction, also in Europe and Central Asia. In addition to
the projects provided under Energy sector management, four district heating projects, three of which are in Europe and Central Asia, are also being
implemented under the Urban Development sector.
Three case studies exemplify Urban Development sector projects aimed
at improving urban environmental quality. The Third Urban Development
Project (Guinea) aims to improve living conditions in Guinea’s capital,
Conakry, by providing basic services, including solid waste management,
and supporting priority investments in other major urban centers. The
Caracas Slum-Upgrading Project (República Bolivariana de Venezuela)
aims to improve the quality of life of several informal settlements in the
metropolitan area by financing community-driven, sustainable, and replicable infrastructure improvements. The Natural Disaster Vulnerability
Reduction Project (Nicaragua) aims to strengthen institutional capacity
in disaster management and mitigation, promote awareness and disaster preparedness, and implement vulnerability reduction and mitigation
measures at the local level.
SECTOR CONTRIBUTIONS TO THE PORTFOLIO
31
Environment
Environment projects constitute the third-largest share of operations in the
active urban environment portfolio, with 45 projects and 17 percent of total
urban environmental investments (figure 5-4). Some 89 percent of these
projects are classified as primarily urban environment investments (type
1). The remaining 11 percent of projects reviewed have urban environment
components (type 2).
Environment investments are present in all six Bank regions. Investment is
largest in East Asia and Pacific, where active commitments total more than
US$600 million. Most operations target urban environmental goals 2 and 3.
More than a quarter of the projects reviewed include components on
solid waste disposal and management (16 projects) and the phasing out of
ozone-depleting substances (14 projects). More than a fifth of projects include
components on industrial and hazardous waste management (11 projects)
and waste reuse and recycling (9 projects). These numbers confirm the
sector’s focus on managing pollution at the urban, regional, and global
levels.
Figure 5-4. Urban Environmental Projects in the Environment
Sector, by Region
2,500
Number
of projects
20
2,000
16
1,500
12
1,000
8
500
4
US$ millions
0
0
SubEast Asia
Saharan
and
Africa
Pacific
Investment
Number
of projects
Europe
Latin
and
America
Central and the
Asia Caribbean
Middle
East and
North
Africa
South
Asia
26
619
339
602
181
145
5
9
14
10
5
3
32
URBAN ENVIRONMENT AND INFRASTRUCTURE
Solid waste disposal and management (sanitary landfills) and solid waste
collection are projects the sector shares with Urban Development. The
largest share of these investments is concentrated in Europe and Central
Asia. The Bank is also supporting a regional program in the Caribbean
Community countries.
In protecting urban soil from contamination and pollution, projects in
the Environment sector emphasize industrial and hazardous waste management and waste reuse and recycling. Five projects address hospital
waste management; another six address waste minimization and the introduction of cleaner technologies in industrial production cycles.
The phasing out of ozone-depleting substances is intended to protect
the quality of the global commons. (These projects are included in the urban
environment portfolio because urban areas are where ozone-depleting substances are produced and consumed in the highest concentrations.) Six of
the 14 projects are in East Asia and Pacific. Six projects, four of which are
in Europe and Central Asia, reduce greenhouse gas emissions.
Environment projects address water resource management through operations aimed at regulating urban usage of groundwater (eight projects,
seven of which are in Europe and Central Asia); improving water quality
monitoring (four projects, three of which are in Latin America and the
Caribbean); treating industrial effluents (six projects); and building municipal wastewater treatment plants (four projects). Four projects address air
pollution and air quality monitoring, and six address the control of vehicular emissions, an area shared with the Transport sector.
Three case studies exemplify Environment sector projects aimed at improving urban environmental quality. The Municipal Solid Waste Management
Project (Latvia) aims to introduce modern, self-sustaining solid waste management through the maximum sequestration of methane generated from
landfills, thereby reducing greenhouse gas emissions and creating a revenue stream to cover capital and operational costs. The Industrial Pollution
Control Project (Algeria) aims to reduce exposure to hazardous pollution
that causes health problems and serious ecological degradation by investing in the industrial sector in Annaba and strengthening the institutional
and legal framework. The Lake Victoria Environmental Management Project
(Kenya, Tanzania, and Uganda) aims to restore the natural ecosystem of
Lake Victoria, which is threatened by urban effluents, rural runoff, and
overuse of fisheries. The project seeks to benefit riparian communities and
conserve biodiversity.
Energy
Energy projects constitute the fourth-largest share of operations in the active
urban environment portfolio, with 23 projects and 5 percent of total urban
SECTOR CONTRIBUTIONS TO THE PORTFOLIO
33
environmental investments (figure 5-5). Some 74 percent of the Energy projects reviewed are classified as primarily urban environment investments
(type 1). Another 22 percent have urban environment components (type
2). Four percent of the projects reviewed include some urban environmental
activities (type 3).
Energy investments are present in all six Bank Regions. Investment is
largest in the Europe and Central Asia Region, with active commitments
of almost US$470 million. Most environmental operations target urban
environmental goal 3.
More than half of the projects reviewed include a component on increasing efficiency in energy generation (12 projects). More than one-quarter
include components on district heating systems (eight projects), greenhouse gas abatement (seven projects), or promotion of renewable energy
(seven projects).
Figure 5-5. Urban Environmental Projects in the Energy Sector,
by Region
2,500
Number
of projects
20
2,000
16
1,500
12
1,000
8
500
4
US$ millions
0
0
SubEast Asia
Saharan
and
Africa
Pacific
Investment
Number
of projects
Europe
Latin
and
America
Central and the
Asia Caribbean
Middle
East and
North
Africa
South
Asia
73
41
468
6
4
25
7
2
10
1
1
2
34
URBAN ENVIRONMENT AND INFRASTRUCTURE
Operations addressing efficiency in energy generation are generally the
same projects that are providing district heating systems, often by introducing heat and electricity cogeneration plants. All of the district heating
projects are in Europe and Central Asia, as are 10 out of the 12 energy efficiency operations. These investments often reduce gas emissions and promote renewable energy use. Three of these projects also monitor air pollution
and air quality.
Three Energy operations in Sub-Saharan Africa are promoting the use
of renewable energy for extending and augmenting water supply and providing sanitation in urban locations not adequately served by the electricity distribution grid.
Two case studies exemplify Energy sector projects aimed at improving
urban environmental quality. The Krakow Energy Efficiency Project (Poland)
aims to improve the energy efficiency of municipal heating systems, decrease
heat energy consumption at the end-user level, and develop the knowledge and mechanisms for private sector financing of energy efficiency
schemes. The Improved Household Stoves in Urban Centers Project
(Mongolia) aims to reduce coal fuel consumption in the traditional housing areas (ger areas) of Ulaanbaatar by introducing efficient indoor stoves,
thereby decreasing indoor air pollution and its impacts on human health as
well as carbon dioxide emissions originating from coal burning.
Transport
Transport projects constitute the fifth-largest share of operations in the
active urban environment portfolio, with 23 projects and 2 percent of total
urban environmental investments (figure 5-6). Only 4 percent of the projects
reviewed are classified as primarily urban environment investments (type
1). Some 87 percent of the Transport projects reviewed have urban environment components but a main focus on other sector objectives (type 2).
Nine percent of the projects include some urban environmental activities
(type 3).
Transport investments are present in five of the six Bank regions (every
region except Europe and Central Asia). Investment is largest in the SubSaharan Africa Region, where active commitments total almost US$90 million. Most Transport operations target urban environmental goal 2.
More than one-third of the projects reviewed include components on
controlling vehicular emissions (nine projects) or monitoring air pollution
and air quality (nine projects). More than one-quarter of the projects include
components on efficient public transport systems (five projects), promotion of cleaner fuels for vehicles (six projects), and reduction in noise pollution (six projects). The four projects in East Asia and Pacific that address
the control of vehicular emissions are also providing efficient public trans-
SECTOR CONTRIBUTIONS TO THE PORTFOLIO
35
Figure 5-6. Urban Environmental Projects in the Transport
Sector, by Region
2,500
Number
of projects
20
2,000
16
1,500
12
1,000
8
500
4
US$ millions
0
0
SubEast Asia
Saharan
and
Africa
Pacific
Investment
Number
of projects
Europe
Latin
and
America
Central and the
Asia Caribbean
Middle
East and
North
Africa
South
Asia
87
79
0
44
3
24
4
7
0
9
1
3
port systems and introducing cleaner fuels for vehicles. The four projects
in Latin America and the Caribbean addressing the control of vehicular
emissions are also providing noise pollution reduction and monitoring air
pollution and air quality.
One case study illustrates a Transport sector project aimed at improving urban environmental quality. The Guangzhou City Center Transport
Project (China) aims to improve the accessibility of the city center of
Guangzhou by promoting the efficient use of the urban transport system in
an environmentally sustainable way.
6
Urban Environmental
Investments in Small and
Large Cities
City Size and Urban Environmental Issues
The size of the population of an urban agglomeration and the nature of the
urban environmental problems it faces are strongly correlated. Typically,
large cities face issues of industrial pollution, congestion, and deteriorating
air quality, which smaller centers do not experience. In contrast, smaller
centers may still be facing fundamental issues of water supply, sanitation,
and solid waste management, which larger cities may be providing.
In larger urban areas, intraurban differentials in service provision are relevant, typically between wealthier central areas and informal neighborhoods. The nature of urban environmental problems is also influenced by
such factors as geographic location, climatic considerations, and levels of
socioeconomic development. Population size nevertheless remains a good
indicator of the type of urban environmental issues a city may be facing.
City Size and Urban Environmental Projects
To assess the spatial focus of urban environmental investments, the study
analyzed the distribution of projects in relation to the size of the population
of the urban centers in which they are being implemented (figure 6-1).
Urban population data for the year 2002 for each of the Bank’s client countries were aggregated and classified by the six city size categories used by
UN-Habitat (under 100,000; 100,000–500,000; 500,000–1 million; 1–5 million; 5–10 million; and over 10 million). This national information was then
aggregated to obtain the total urban population in each of the six Bank
regions and analyzed to assess the projects’ focus on cities of different sizes.
It is important to note that the population of larger cities (with multiple
jurisdictions) includes the inhabitants of the core city as well as those of
the surrounding cities and towns; the total number of inhabitants comprise
the metropolitan area/urban agglomeration of that core city. This metropolitan area/urban agglomeration designation applies specifically, but not
exclusively, to cities with more than 1 million people.
36
URBAN ENVIRONMENTAL INVESTMENTS IN SMALL AND LARGE CITIES
37
Figure 6-1. Number of Urban Environmental Projects, by City
Size
Urban population
(thousands)
500,000
450,000
166
400,000
21%
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
27%
150
20%
110
108
11.1%
8%
34
Number
of projects
200
180
160
140
120
13%
100
80
60
40
24
20
0
<100K 100K–500K 500K–1M 1M–5M
5M–10M
>10M
Urban
360,850
349,564
193,505
468,188
139,699
232,740
population
Number of
166
150
110
108
34
24
projects
Note: Because some projects invest in cities of different size, the number of projects exceeds 264.
The analysis shows that while about half of the developing world’s urban
population lives in cities with fewer than 1 million inhabitants, 72 percent
of the Bank’s urban environmental projects are concentrated there. This
relative emphasis on smaller urban centers is particularly acute at both
ends of the spectrum. The smallest urban centers—cities with fewer than
100,000 inhabitants, which account for 21 percent of the total urban population— benefit from 28 percent of the Bank’s projects; the largest urban
centers—cities with more than 5 million inhabitants, which account for 21
percent of the total urban population—benefit from 10 percent of the projects.
The information available on these operations made it possible to establish only the number of projects active in cities of different sizes, not the volume
of investment. A more detailed review of urban environmental investments
by city size might contradict—or reinforce—the correlations described here.
Regional Variations
The definition of a large urban center varies across regions. A large city in
Europe and Central Asia, for example, would be considered a small or
URBAN ENVIRONMENT AND INFRASTRUCTURE
38
Table 6-1. Number of Urban Environmental Projects, by City
Size and Region
Region
<100K
East Asia and
the Pacific
Europe and
Central Asia
Latin America and
the Caribbean
Middle East and
North Africa
South Asia
Sub-Saharan Africa
Bank-wide
100K–
500K
500K– 1M–
1M
5M
5M–
10M
>10M
Total
projects
20
28
22
28
10
11
50
34
27
16
20
4
1
53
37
31
25
28
9
4
53
24
12
39
166
23
10
31
150
17
9
21
110
9
9
14
108
2
8
1
34
0
8
0
24
35
19
54
264
Note: Number of projects exceeds 264 because some projects invest in cities of
different sizes.
medium-size city in Asia, and it would experience very different urban
environmental problems. Moreover, larger cities in Asia and Africa are
experiencing more rapid population growth, because of higher natural
birth rates and rural-urban migration rates than their counterparts in other
regions, where urbanization is tapering off. As a result, gaps in infrastructure and service provision are greater in these cities, leading to more urban
environmental problems.
The regional analysis of urban environmental investments by city size
confirms the general Bank-wide picture, with some significant variations
(table 6-1). Most of the projects in cities with 1–5 million people are in East
Asia and Pacific, Latin America and the Caribbean, and Europe and Central
Asia. East Asia and Pacific, Latin America and the Caribbean, and South
Asia stand out in terms of number of projects in large cities (5–10 million
inhabitants) and megacities (more than 10 million inhabitants). East Asia and
Pacific has the smallest number of projects in cities with less than 100,000
inhabitants.
Urban Environmental Goals and City Size
The pattern of concentrating on cities with fewer than 1 million people
is reflected in the distribution of projects by urban environmental goal.
All four urban environmental goals are represented equally in proportion to their relative weight in the portfolio (table 6-2). In cities with more
URBAN ENVIRONMENTAL INVESTMENTS IN SMALL AND LARGE CITIES
39
Table 6-2. Number of Urban Environmental Projects, by Goal
and City Size
Urban
environmental goal
Goal 1: Protect and
enhance environmental health in
urban areas
Goal 2: Protect water,
soil, and air quality
in urban areas from
contamination and
pollution
Goal 3: Minimize the
urban impact on
natural resources
at regional and
global scales
Goal 4: Prevent and
mitigate urban
impacts of natural
disasters and
climate change
<100K
100K–
500K
500K– 1M–
1M
5M
5M–
10M
>10M
101
90
61
85
81
46
15
Total
projects
53
6
6
156
62
56
14
11
150
43
36
40
14
15
75
12
7
8
4
0
22
Note: Number of projects exceeds 264 because some projects invest in cities of
different sizes.
than 1 million inhabitants, a larger percentage of projects target goal 2
than other goals. Goal 4 is pursued more in smaller urban centers than
in larger ones, presumably because of the prevalence of natural disaster
mitigation and reconstruction activities; no project is pursuing goal 4 in
a megacity.
Sector Focus on City Size
Cities with fewer than 500,000 inhabitants attract the bulk of the Water and
Sanitation, Urban Development, and Energy sector investments, which
focus on providing neighborhood-level and citywide infrastructure and
services (table 6-3). Transport sector operations are prevalent in cities with
1–5 million inhabitants, where issues of air pollution and public transport
are very important. Environment sector operations dominate in large cities
and megacities.
URBAN ENVIRONMENT AND INFRASTRUCTURE
40
City Size and Urban Environmental Focus
Interpreting this pattern of urban environmental investments across urban
centers of different size is tricky. The following reasons can nevertheless
be put forth:
1. In larger countries (for instance, Brazil or China), government policies
may tend to favor investments in small or medium-size cities, which are
considered poorer than larger ones. Larger cities are thought to have
more resources and capacity to invest in infrastructure and services—
and in turn to address their urban environmental issues—because of
their stronger economies and proximity to national political centers of
power.
2. The urban environmental problems of smaller cities are generally less
complex and smaller in scale than those in larger cities, and could be
addressed with a preventive approach. Hence it may be easier to achieve
results in smaller cities than in larger ones.
3. Investing in larger cities, where environmental problems often span
urban and regional space, involves working with multijurisdictional
institutional settings. This adds significant complexity to the challenge
of addressing urban environmental problems, and it increases the cost
of investments, including the transaction costs associated with defining
and forming consensus around urban environmental priorities. The often
differing agendas of separate municipalities within the same metropolitan area, problems of administrative separatism, and the greater sharing of responsibilities among stakeholders in larger cities require strategic
integration in urban environmental planning and management (Bartone
and others 1994; Dahiya and Pugh 2000).
Table 6-3. Number of Urban Environmental Projects, by Sector
and City Size
Sector
<100K
Water and Sanitation 54
Urban Development 70
Environment
67
Energy
78
Transport
26
Other
24
Bank-wide
166
100K–
500K
500K– 1M–
1M
5M
52
68
67
48
30
17
150
41
38
56
43
17
13
110
31
43
56
43
57
8
108
5M–
10M
>10M
7
12
24
9
17
4
34
5
3
31
9
4
1
24
Total
projects
85
60
45
23
23
28
264
Note: Number of projects exceeds 264 because some projects invest in cities of
different sizes.
7
The Role of Local Government,
Civil Society, and
the Private Sector
Urban environmental management relies on the comparative advantages
of various agencies and stakeholders from the public and private sectors as
well as on civil society organizations in different local contexts. However, the
Bank lends to national governments, and therefore, government agencies
generally implement projects. Eighty-seven percent of the projects reviewed
are being implemented by government agencies. In a small proportion of
projects (13 percent), government agencies are also involved in identifying
subprojects (targeting actions to specific communities or localities).
Local governments, civil society, and the private sector have emerged
as significant counterparts in urban environmental management in developing countries and transition economies, and they are increasingly involved
in project design and implementation. The private sector is providing services, through contractual and concession arrangements (figure 7-1).
The Role of Local Government
With decentralization, local governments have assumed a significant role in
development projects. Because local governments are closest to project beneficiaries and often have more information on local concerns and more options
available to address them, they are seen as the optimal local counterparts for
implementing projects. However, government agencies (at the central or
provincial level) and parastatals generally have the technical expertise—and
generally the mandate—to manage urban environmental investments.
The role of local governments in Bank projects increased during the 1990s.
In more than one-third of projects, the national authorities have delegated
the task of implementing Bank projects to local governments (table 7-1).
Local governments are also involved in project design in about one-fifth of
projects, primarily in identifying subprojects. Local governments have a
comparative advantage in being able to consult with project beneficiaries
directly as well as through collaboration with civil society organizations.
This is particularly valuable in projects that aim to provide basic environmental infrastructure and services, especially at the neighborhood level.
41
URBAN ENVIRONMENT AND INFRASTRUCTURE
42
Figure 7-1. Counterparts Implementing World Bank-Funded
Urban Environmental Projects
Number of projects
250
200
150
92
(35%)
100
50
43
(16%)
48
(19%)
47
(18%)
44
(17%)
10
(4%)
0
Local
Local
Civil
government government
society
project
project
project
design
implementation design
Civil
Private
Concession
society
sector
to private
project
urban
sector
implementation environment
services
Counterparts
Note: Total exceeds 100 percent because multiple counterparts may be involved
in the same projects.
The Role of Civil Society
The role of civil society has grown in importance in the development agenda.
Civil society gives “voice” to local (as well as global) environmental concerns (Paul 1991); mobilizes community support for developmental projects; contributes to project design and implementation (by providing
information on the social impacts of developmental projects or the maintenance of infrastructure and services, for example); and provides feedback on projects (by monitoring the provision of services).
Table 7-1. Involvement of Local Government, Civil Society, and the Private Sector in Designing and
Implementing Urban Environmental Projects, by Goal
Local government
Urban
environmental
goal
Design
Civil society
Implementation
Design
Implementation
Private sector
Private
sector
participation
Concession
Bank-wide
43
Goal 1: Protect and
enhance environmental health in
urban areas
35
61
44
36
39
9
156
Goal 2: Protect water,
soil, and air quality
in urban areas from
contamination and
pollution
24
59
25
29
25
5
150
Goal 3: Minimize the
urban impact on
natural resources at
regional and
global scales
5
22
4
9
6
0
75
Goal 4: Prevent and
mitigate urban impacts
of natural disasters
and climate change
1
5
1
1
0
0
22
43
92
48
47
44
10
264
Bank-wide
Note: Number of projects is greater than 264 because multiple counterparts may be involved in the same projects.
44
URBAN ENVIRONMENT AND INFRASTRUCTURE
The increasing importance of civil society as a counterpart is reflected
in Bank projects. Civil society is involved in project design, subproject identification, and project implementation in about one-fifth of active urban
environmental projects. Bank projects build on the strengths of civil society,
especially in the provision of basic environmental services to the urban
poor (goals 1 and 2).
The Role of the Private Sector
The private sector has the potential to contribute to urban environmental
management in many ways. (For a review of the interface between private
sector development and environmental issues in Bank projects, see Abuyuan
2002.) It can, for example, play an important role in encouraging adoption
of cleaner technology in industries, in providing urban environmental services, and in engaging in twinning arrangements for capacity building in
public sector utilities. The private sector is participating in about one-fifth
of the active projects under review. In nine projects concession agreements
for the provision of services by the private sector are foreseen.
Involvement by Sector
Different Bank sectors involve local governments, civil society, and private
sector in different capacities (table 7-2). Most sectors involve local governments in project design and implementation. Local government involvement is greatest in the Urban Development sector projects, where local
governments are involved in more than half of all projects.
Civil society is involved mainly in Urban Development, Water and
Sanitation, and Environment sector projects. Involvement is greatest in the
Urban Development sector, particularly in project design. Civil society identifies needs for the provision of basic environmental services. Private sector
participation is prevalent mainly in Water and Sanitation sector projects.
Table 7-2. Number of Urban Environmental Projects, by Sector and Counterpart
Local government
Sector
45
Water and Sanitation
Urban Development
Environment
Energy
Transport
Other
Bank-wide
Design
11
24
2
2
0
4
43
Implementation
27
31
14
7
6
7
92
Civil society
Design
15
21
5
0
0
7
48
Implementation
11
17
11
1
1
6
47
Private sector
Private
sector
participation
Concession
29
5
3
5
1
1
44
6
2
0
2
0
0
10
Note: Number of projects is greater than 264 because multiple counterparts may be involved in the same projects.
Total
projects
85
60
45
23
23
28
264
8
Institutional Strengthening and
Technical Assistance
Addressing urban environmental issues in developing countries warrants
more than just a sector approach. Instruments need to be put in place to
improve the ability to address technical and nontechnical issues, to provide environment-related and general technical assistance, and to support
counterparts.
Appropriate regulatory frameworks are needed to facilitate better urban
environmental management that cuts across sectors. Such frameworks are
put in place through institutional strengthening in 45 percent of projects
and through (concomitant) capacity building of the counterpart organizations in 65 percent of projects (figure 8-1).
Environment-related technical assistance provided by the Bank includes
environmental action plans, environmental management plans, audits,
monitoring and information systems, and public education on environmental issues. General technical assistance is related to policy formulation,
preparation of strategies and sector plans, and specific project-related studies (one of the most frequently provided forms of technical assistance in
the projects reviewed).
All sectors under review provide assistance for institutional strengthening and capacity building (table 8-1). The Environment sector provides
the most environment-related technical assistance and environmental management in industries. Bank projects support counterparts in order to
enhance their involvement in project design and implementation. Eleven
percent of projects provide assistance for private sector development; five
percent of projects support civil society involvement.
46
Figure 8-1. Projects That Strengthen Institutions or Provide Technical Assistance
Deliverables
45%
Institutional strengthening
Capacity building
65%
Environmental action plans/
environmental management plans
11%
Environmental audits
3%
16%
Environmental monitoring systems
Environmental information systems
10%
47
Environmental education
22%
Environmental management
in industries
2%
34%
Project-related studies
8%
Policy formulation
Strategy preparation
11%
Preparation of sector plans
20%
Private sector development
11%
Support for civil society
involvement
Environmental/pollution
control fund
5%
3%
0
50
100
Number of projects
150
200
250
Table 8-1. Institutional Strengthening, Capacity Building, Technical Assistance, and Support to
Counterparts, by Sector
Component
Water and
Sanitation
48
Institutional
strengthening
Capacity building
Environmental action
and management plans
Environmental audits
Environmental
monitoring systems
Environmental
information systems
Environmental education
Environmental
management in
industries
Project-related studies
Policy formulation
Strategy preparation
Preparation of
sector plans
Private sector
development
Support for civil
society involvement
Environmental/
pollution control fund
Total projects
Urban
Development
Environment
Energy
51
65
25
36
20
32
13
11
5
10
5
18
119
172
12
3
5
1
7
5
2
0
0
0
3
0
29
9
16
4
14
6
2
0
42
11
17
8
14
4
16
1
5
0
4
2
3
26
59
1
38
8
6
0
22
5
8
3
10
6
4
0
9
2
0
0
6
0
12
0
5
0
0
4
90
21
30
19
18
7
1
4
3
52
13
6
3
6
0
1
29
6
3
2
0
0
2
13
3
85
1
60
3
45
0
23
0
23
1
28
8
264
Note: Number of projects is greater than 264 because projects support multiple activities.
Transport
Other
Total
Bank-wide
9
Tracking the Quality of the
Urban Environment Portfolio
The Bank tracks project implementation and periodically rates progress
toward achieving development objectives by generating project supervision reports. On the basis of these reports, four measures of portfolio quality are periodically assessed: the percentage of projects at risk, the percentage
of commitments at risk, realism (the ratio of actual problem projects to total
actual and potential problem projects), and proactivity (the proportion of
projects rated as problem projects 12 months earlier that have been
upgraded, restructured, suspended, or partially or fully canceled).
The urban environment portfolio performs better than the overall Bank
portfolio in terms of projects and commitments at risk. It has 3.5 percent
fewer projects at risk and 7 percent fewer at-risk commitments than the
portfolio of the Bank as a whole (figure 9-1). The percentage of urban environmental projects demonstrating realism (85 percent) is significantly higher
than average for the Bank as a whole (62 percent).
The difference indicates that a higher proportion of urban environmental projects are encountering difficulties and are being rated as unsatisfactory on progress in implementation, on the achievement of development
objectives, or both. The urban environment portfolio performed much
worse than the Bank in terms of proactivity. Only 42 percent of projects in
which problems had been identified the previous year had taken one of
the recommended actions to respond to the problem (for the Bank as a
whole the figure was 82 percent). Together these quality indicators suggest
that urban environmental projects probably demand more intense supervision, better operational responses, and more effective adaptation to the
realities on the ground in the implementation process to achieve their developmental objectives.
49
URBAN ENVIRONMENT AND INFRASTRUCTURE
50
Figure 9-1. Quality of the Urban Environment and Overall
Bank Portfolios, Third Quarter, Fiscal 2003
Percentage
100
80
60
40
20
0
World Bank
Urban
environment
Projects at risk
Commitments
(percentage) at risk (percentage)
Realism
(percentage)
Proactivity
(percentage)
19.0
18.0
61.7
82.4
15.5
11.0
85.4
41.7
10
Using Monitoring Indicators to
Measure Progress
The Bank has put increasing emphasis on improving the monitoring and
evaluation of project implementation and outputs in recent years (Kolev
and Nitti 2001; World Bank 2002c). Indicators are essential to monitor implementation progress and measure project outcomes.
In the Bank’s Project Appraisal Documents, performance indicators are
divided into output and impact indicators. Reference manuals have been
prepared to help Bank Task Teams select and design performance indicators. For instance, Segnestam (1999) provides references on the way in
which project outputs and impacts can be measured through Environmental
Performance Indicators.
The review identified the kind of output and impact indicators used in
the Bank’s urban environmental projects. It also examined how expected project outputs and impacts relate to achievement of the Millennium
Development Goals, where relevant.
Four kinds of environmental indicators are used:
• environmental health indicators (such as infant and child mortality
rates)
• pollution reduction indicators (such as tons of pollution load removed)
• access to services indicators (such as increases in the percentage of the
population with improved access to safe water supply)
• proxy operational indicators (such as the percentage of solid waste going
to landfill or the length of sewer pipes replaced and rehabilitated)
Only about two-thirds of the projects reviewed use environmental indicators (figure 10-1). The small proportion probably reflects the difficulties
and costs of creating baseline surveys identifying the state of the local environment before the investments take place. In addition, many of the projects
reviewed were designed before monitoring and evaluation were emphasized as they are today. Environmental health indicators, which provide
the best measure of the quality of life in urban areas, are used in only 5 percent of the projects.
51
URBAN ENVIRONMENT AND INFRASTRUCTURE
52
Figure 10-1. Environmental Indicators Used in Urban
Environmental Projects
Number of projects
250
200
65%
150
38%
100
50
0
23%
18%
5%
Environmental Environmental
indicators
health
Pollution
reduction
Access
to services
Proxy
operational
Using Indicators to Measure Progress toward Achieving
Urban Environmental Goals
Different indicators are used to measure progress toward meeting different
urban environmental goals (table 10-1). Access to services indicators are
used in projects focusing on goals 1 and 2; pollution reduction indicators
are used mainly in projects that address urban environmental goals 2 and
3. The use of proxy operational indicators is widespread and the use of
environmental health indicators is limited.
Environmental health indicators—such as measuring the impact of providing water and sanitation services to the urban poor—are used chiefly
by the Water and Sanitation sector (table 10-2). The main users of pollution
reduction and abatement indicators are the Environment and Water and
Sanitation sectors, which use them to measure pollution loads in rivers and
streams, air pollution, and greenhouse gas emissions. A significant proportion of Water and Sanitation sector projects use access to services indicators, such as extension of water supply to unserved neighborhoods.
Using Indicators to Measure Progress toward Achieving
the Millennium Development Goals
Bank projects that address urban environmental concerns are contributing
to the achievement of many Millennium Development Goals and some of
their key targets (figure 10-2). A major focus of Bank projects is integrating the
USING MONITORING INDICATORS TO MEASURE PROGRESS
53
Table 10-1. Environmental Indicators Used to Measure Progress
in Urban Environmental Projects, by Goal
(number of projects)
Urban
environmental
goal
Environmental
health
Goal 1: Protect and
enhance environmental health in
urban areas
10
Goal 2: Protect water,
soil, and air quality
in urban areas from
contamination and
pollution
7
Goal 3: Minimize the
urban impact on
natural resources
at regional and
global scales
1
Goal 4: Prevent and
mitigate urban impacts
of natural disasters
and climate change
2
Bank-wide
12
Pollution
reduction
Access to
Proxy
services operational
Total
projects
27
43
66
156
46
36
61
150
34
6
28
75
3
61
0
47
8
100
22
264
Table 10-2. Urban Environmental Indicators Used, by Sector
Sector
Environmental Pollution
health
reduction
Water and Sanitation
Urban Development
Environment
Energy
Transport
Other
Bank-wide
9
1
1
0
0
1
12
22
7
20
8
2
2
61
Access to
services
34
7
4
0
0
2
47
Proxy
Total
operational projects
39
27
11
8
7
8
100
85
60
45
23
23
28
264
54
URBAN ENVIRONMENT AND INFRASTRUCTURE
principles of sustainable development policies and programs (target 9) in
client countries’ policies, a target that 82 percent of projects—and 100 percent of Energy sector projects—support (table 10-3). Achievement of this
target can be measured through standard output indicators used in Bank
projects. About half of all projects help achieve Millennium Development
Goal targets 5, 6, 8, and 10. About one-third of all projects help achieve
Millennium Development Goal target 11.
Millennium Development Goals (MDGs) Relevant to
the Urban Environment
MDG 4: Reduce child mortality.
• Target 5 for 2015: Reduce the mortality rate among children under five
by two-thirds.
MDG 5: Improve maternal health.
• Target 6 for 2015: Reduce the ratio of women dying in childbirth by
three-quarters.
MDG 6: Combat HIV/AIDS, malaria, and other diseases.
• Target 8 for 2015: Halt and begin to reverse the spread of HIV/AIDS
and the incidence of malaria and other major diseases.
MDG 7: Ensure environmental sustainability.
• Target 9: Integrate the principles of sustainable development into country policies and programs, and reverse the loss of environmental
resources.
• Target 10: By 2015 reduce the proportion of people without access to
safe drinking water by half.
• Target 11: By 2020 achieve significant improvement in the lives of at
least 100 million slum dwellers.
Water and Sanitation, Urban Development, and “other” sectors invest in
a high proportion of projects that support Millennium Development Goal
targets 5, 6, 10, and 11. This arguably has a causal relationship with improvements in environmental health. But only a small fraction of projects in these
sectors use environmental health indicators, leaving a crucial gap in measuring progress toward meeting the targets. A significant proportion of
USING MONITORING INDICATORS TO MEASURE PROGRESS
55
Figure 10-2. Projects Contributing to Meeting Millennium
Development Goal Targets
MDG target
Targets 5 and 6
53%
Target 8
45%
Target 9
82%
Target 10
47%
Target 11
31%
0
50
100
150
200
250
Number of projects
Note: Number of projects is greater than 264 because multiple MDG targets may
be present in the same projects.
Table 10-3. Millennium Development Goal Targets of Urban
Environmental Projects, by Sector
Sector
Water and Sanitation
Urban Development
Environment
Energy
Transport
Other
Bank-wide
Targets
5 and 6
Target
8
Target
9
Target
10
Target
11
Total
projects
77
38
3
3
2
16
139
50
41
8
2
6
12
119
64
46
43
23
20
20
216
67
34
3
3
2
14
123
38
31
2
2
1
9
83
85
60
45
23
23
28
264
Note: Number of projects is greater than 264 because multiple MDG targets may
be present in the same projects.
projects in all sectors except Energy contribute to achieving Millennium
Development Goal target 8. There is a clear need to enhance the use of environmental indicators that could help measure progress toward achieving
the Millennium Development Goal targets.
11
Strengths and Weaknesses of the
Urban Environment Portfolio
The Bank’s current commitment to improving urban environmental quality is strong. One out of five active operations includes activities or components that aim to improve the urban environment, and more than US$12
billion (12.6 percent of all active lending) is committed to the expanded brown
agenda.
The fact that so many sectors are responsible for these operations shows
that the urban environment is a cross-cutting field. Three-quarters of all
Bank loans in this area are in the Water and Sanitation, Urban Development,
and Energy sectors, confirming the importance of infrastructure investments to the urban environment. Such investments are critical not only to
promote economic growth but also to generate more equitable access to
basic services; improve quality of life, especially for the urban poor; and
achieve environmental sustainability.
The portfolio review indicates that Bank operations are actively contributing to improving environmental health and protecting natural
resources in and around urban areas. These issues are at the core of the
brown agenda as defined at the beginning of the 1990s, when the majority of
the operations reviewed were designed and approved.
Many of the operations reviewed cover several urban environmental
challenges, some of which go beyond the direct competence of the sectors
in charge, as some of the case studies show. Solid waste management projects are managed by the Water and Sanitation, Urban Development, and
Environment sectors, revealing not only the importance of the issue but
also the willingness of these sectors to integrate it with other project components, providing more synergies and ultimately better results on the
ground. Sector responsibilities over specific aspects of urban environmental projects seem at times to overlap, given that operations targeting similar goals, such as extending water supply or providing sanitation, may be
handled by different sectors in different regions.
Many operations are designed exclusively around single sector issues.
This focus may allow projects to have greater impact on a particular issue,
as they are often part of national efforts at sector reform that combine invest-
56
STRENGTHS AND WEAKNESSES OF THE URBAN ENVIRONMENT PORTFOLIO
57
ments with enforcement of new policies. Such operations may be forgoing
the opportunity to provide holistic coverage of environmental priorities,
however.
The majority of the projects reviewed appear to be contributing to the
achievement of the Millennium Development Goals. These projects are
reducing infant and child mortality, reducing the incidence of major diseases, integrating sustainable development into national policies and programs, reducing the percentage of people without access to safe drinking
water, and improving the lives of slum dwellers.
In addition to the physical investments, these operations also provide
the opportunity to support important processes for defining, approving,
and implementing sector reforms; putting in place or reinforcing sector institutions and agencies; and improving the participation of local governments,
civil society, and the private sector in providing urban environmental services. If these improvements and innovations are maintained and applied
more broadly by the Bank’s borrowers, they may bring significant benefits
that extend well beyond the scope of the projects themselves.
In all of the Bank’s regions and nearly all of its client countries, the Bank
is supporting research and the dissemination of its findings, and opportunities for capacity building and learning, either independently or through
partnerships. All of these activities draw from the lending operations, and
the project counterparts generally benefit from them.
The portfolio review has also highlighted some areas of concern:
• Investments in the cities of South Asia seem to fall short of needs.
Although South Asian cities make up 20 percent of the world’s urban
population, they account for just 9 percent of the Bank’s urban environmental lending. On a per urban capita basis, Bank investment in the
region is less than one-third the average figure.
• Smaller cities are the beneficiaries of a disproportionate share of Bank
projects. Although about half of the urban population of the Bank’s client
countries live in cities with less than 1 million inhabitants, more than
two-thirds of the Bank’s urban projects are located in such cities. This
may mean that the urban environmental challenges of larger agglomerations, especially megacities, may not be addressed as fully as they
could be.
• Indoor air quality and urban air pollution are not adequately addressed
in the urban environment portfolio: the Bank supports only 4 projects
on improving indoor air quality, 18 providing vehicular or industrial
emissions control, and 8 promoting the use of cleaner fuels for vehicles
and more efficient public transportation systems. Current levels of morbidity and mortality caused by poor indoor and urban air quality suggest that the Bank’s contribution may be too modest, particularly given
58
URBAN ENVIRONMENT AND INFRASTRUCTURE
the importance of air quality issues in the Bank’s own corporate strategies and analytical work.
• Pollution from small and medium-size enterprises and from the semiindustrial activities of the informal sector are not addressed by the Bank’s
urban environment portfolio. Studies on the sources of urban pollution
across the developing world confirm that small and medium-size enterprises and the informal sector are important sources of pollution that
affect natural resources, the environmental health of the resident population, and their own labor forces. The environmental management systems and regulatory frameworks that the Bank helps sector institutions
set in place are rarely applied to such small-scale operators.
12
Recommendations for Future
Work
This review did not cover the next generation of urban environmental projects—those currently being designed or under preparation. The review of
the pipeline might reveal that some of the concerns raised are being
addressed by the next generation of investments.
The review did not cover the Bank’s knowledge services, such as analytical and advisory work, technical assistance, and capacity building. In
recent years, the Bank has financed a significant volume of knowledge services to its clients, and some of the concerns highlighted may have been at
least partially addressed.
Several recommendations can be made that reflect the new directions
development assistance is taking and the need to pursue a broader, expanded
brown agenda:
• The linkages among environment, poverty, and health in urban areas
need to be better mainstreamed in the Bank’s work. The expanded brown
agenda needs to be better recognized and introduced in Country
Assistance Strategy and Poverty Reduction Strategy discussions, when
the Bank and client governments negotiate priority areas for Bank intervention and support. Country environmental analyses and sector environmental analyses could be the appropriate tools for this mainstreaming
to take place.
• The next generation of urban environmental projects will have to include
a better set of environmental indicators, in order to establish the positive impacts that operations are having on the quality of life, the livability of cities, and the protection of the regional and global commons.
To demonstrate the contribution of its lending operations to the achievement of the Millennium Development Goals, the Bank has undertaken
a major effort to provide projects with more detailed impact indicators.
These indicators may eventually be “retrofitted” to several active operations, including some in the urban environment portfolio.
• As the expanded brown agenda becomes more widely recognized, Bank operations should more forcefully address mitigation of and adaptation to cli-
59
60
URBAN ENVIRONMENT AND INFRASTRUCTURE
mate change. Increasing climate variability, the growing number and intensity of natural disasters due to climate change, and the increase in sea level
are becoming bigger parts of the daily challenges facing cities in the developing world, 70 percent of which are located on coasts. These new challenges threaten quality of life, productivity and competitiveness, and in
some cases the very ability of these cities to survive.
• Before such new areas can be mainstreamed as part of lending operations, the Bank’s research and analytical work must embrace the expanded
brown agenda more fully. It must devote resources to exploring some
emerging new issues including, for instance, the opportunities for urban
regeneration represented by brownfields reclamation. This has yielded
interesting results in OECD countries, but remains largely unexplored in
the developing world, despite obvious opportunities in regions such as
Latin America and the Caribbean and South and East Asia, and some
successful operations.
For progress to be made in any of these areas, collaboration between the
Infrastructure and Environment units at both the central and regional levels
needs to move beyond simple compliance with the Bank’s environmental
safeguards policies. Active collaboration is needed to promote more and
better infrastructure investments to improve the urban environment in a
sustainable manner.
More collaboration is also needed among the four sectors that are part
of the Bank’s Infrastructure Vice Presidency (Water and Sanitation, Urban
Development, Energy, and Transport), so that synergies can be captured at
the outset of project design. In the future, for example, improvement of
storm-water drainage and solid waste collection, or of disaster preparedness and slum upgrading, should be pursued as interrelated development
objectives.
To facilitate further integration of the urban environmental challenges,
multidisciplinary Bank teams working in close collaboration with local
counterparts could generate Rapid Urban Environmental Profiles. This tool
provides a quick review of the major environmental issues a city faces,
highlights the city’s priorities, and helps in understanding the complex
links among the various environmental challenges.
During the 1990s, the pursuit of a holistic approach to urban environmental management was promoted through strategic planning. Many multilateral and bilateral development agencies, as well as many
nongovernmental organizations engaged in comprehensive strategic planning exercises, often along the lines of the Local Agenda 21 principles. The
Bank endorsed this approach, but it was not extensively applied in the
Bank’s operational work, because of the time and financial resources
required to carry out comprehensive urban environmental strategies. The
RECOMMENDATIONS FOR FUTURE WORK
61
need to conduct stakeholder consultations was difficult to integrate into
the normal project preparation cycle. Urban environmental strategies carried out independently often caused local frustration, as the participatory
definition of the priorities and action plans was not followed by investments.
The preparation of a city-specific Rapid Urban Environmental Profile
would not be a complex, costly, and cumbersome exercise but rather an
overview of the environmental challenges a city is facing. It would constitute the basis for a common understanding of priorities, which would then
be addressed in the design of parallel interrelated sector loans or of a single
operation. Country team support for a common effort that would pool specialists—generally confined to work programs determined by their sector
affiliations—would be essential for its implementation.
This recommendation was approved by the joint meeting of the Water
and Sanitation, Urban Development, and Environment Sector Boards that
met to discuss the preliminary findings of the urban environment portfolio review in December 2002.
Given the importance of the Infrastructure sectors in improving the
urban environment, it is recommended that the Rapid Urban Environmental
Profiles be prepared as part of, or in conjunction with, the infrastructure
assessments being promoted by the Infrastructure Vice-Presidency.
II
Case Studies
Overview of Case Studies
Twelve case studies were developed to illustrate the multisector nature of the
urban environment portfolio and the integrated approach needed to address
urban environmental issues (see table). The cases represent typical project
deliverables found in the Bank’s urban environmental work in the five main
sectors (Urban Development, Environment, Water and Sanitation, Energy,
and Transport) but also innovative ones. The case studies were drafted using
public information for the descriptive data, the authors’ subjective statements on the urban environmental aspects of the projects, and the Bank
supervising Task Team Leaders’ judgments on implementation progress.
Case Studies of Projects with Urban Environmental Goals
Project
Urban
environmental
goal
Project
city
Urban
environmental
issues addressed
Water and Sanitation
China: Liaoning
Environment
India: Bombay
Sewage Disposal
Colombia: Cartagena
Water Supply,
Sewerage, and
Environmental
Management
Anshan, Dalian,
Fushun, Benxi,
Jinzhou
Mumbai
1, 2, 3
1, 2
Cartagena
1, 2
Guinea: Third
Urban Development
Conakry
1, 2
RB de Venezuela:
Caracas Slum
Upgrading
Nicaragua: Natural
Disaster Vulnerability
Reduction
Caracas
1
Secondary cities
4
Wastewater
management,
clean technology
Sewage disposal,
sanitation in
slums
Water supply
and sewerage
Urban Development
Urban services,
including solid
waste management
Urban upgrading
Disaster
management
(Continued on the following page.)
65
URBAN ENVIRONMENT AND INFRASTRUCTURE
66
Case Studies of Projects with Urban Environmental Goals
(continued)
Project
Project
city
Urban
environmental
goal
Urban
environmental
issues addressed
3
Solid waste
management,
groundwater
pollution,
greenhouse gas
reduction
Industrial
pollution
Water resources
and coastal
zone
management
Environment
Latvia: Municipal
Solid Waste
Management
Riga
Algeria: Industrial
Pollution Control
Kenya, Tanzania,
Uganda: Lake Victoria
Environmental
Management
Annaba
2, 3
Kampala, Mwanza,
Kisumu
2
Krakow,
Skawina
Ulaanbaatar
3
Energy
Poland: Krakow
Energy Efficiency
Mongolia: Improved
Household Stoves in
Urban Centers
1, 2, 3
District heating,
energy efficiency
Indoor and
ambient air
pollution, energy efficiency
Transport
China: Guangzhou
City Center
Transport
Guangzhou
2
Air quality
management
Goal 1: Protect and enhance environmental health in urban areas.
Goal 2: Protect the water, soil, and air quality in urban areas from contamination
and pollution.
Goal 3: Minimize the urban impact on natural resources at the regional and
global scales.
Goal 4: Prevent and mitigate the urban impacts of natural disasters and climate
change.
China:
Liaoning Environment Project
Project Data
Project title: Liaoning Environment Project (P003598)
Sector: Water and Sanitation
Region: East Asia and Pacific
Country: China
Cities and size of cities: Anshan, 2.42 million; Benxi, 1.18 million; Dalian,
3.32 million; Fushun, 1.43 million; Jinzhou, 1.3 million
Sector codes: Sewerage (67 percent), district heating and energy efficiency
services (25 percent), solid waste management (6 percent), other social services (2 percent)
Theme codes: Water resources management (primary), environmental policies and institutions (primary), pollution management and environmental health (primary), climate change (secondary)
Amount of loan and total project value: US$110 million, US$350.8 million
Fiscal year of approval: 1994
Scheduled closing date: December 31, 2003
Task Team Leader: Rajagopal S. Iyer, Lead Management Specialist, East
Asia and Pacific Urban Development Sector Unit
Project Profile
Development objectives: This project aims to protect the main water
resources in Liaoning Province, including the Hun-Taizi river basin, to
allow sustained economic and safe use for drinking, industrial, and agricultural purposes; to strengthen pricing policies and institutional arrangements for environment protection, water pollution control, and wastewater
and municipal solid waste management; and to institute measures to control air pollution and manage cultural heritage assets.
Benefits and target population: The project is expected to significantly mitigate environmental degradation and yield both economic and social ben-
67
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URBAN ENVIRONMENT AND INFRASTRUCTURE
efits for Liaoning Province, an area of serious and concentrated water
and air pollution, largely of industrial origin. Project components are
designed to both reduce pollution and improve operational efficiency
through technological upgrading and waste minimization and reuse.
Control of water pollution at industrial sites is expected to reduce costs
for water treatment and urban water supply. Health benefits are expected
to accrue from the reduction of waterborne diseases, while reduced emissions of toxic gases into the atmosphere are expected to decrease respiratory ailments and cancer and reduce corrosive damage to buildings.
The project is also expected to improve operational efficiency in solid
waste collection and disposal. The innovative heritage conservation components protect cultural assets from further damage and display and
restore unique world-class cultural property for sustained public use.
Finally, the project hopes to contribute to the sustainability of environmental management in the province by demonstrating cost-effective pollution control measures, strengthening local capabilities in the monitoring
and enforcement of environmental regulations, corporatizing the sewerage utilities, and establishing a sound cost recovery policy for pollution
abatement services.
Project description (components): The project provides physical works
and technical assistance for institutional development in water supply,
wastewater treatment, air pollution control, waste management, water conservation and process improvements, and environmental rehabilitation
and reconstruction. Project components include the following:
• Wastewater management in Anshan and Fushun: Construction of sewers,
pump stations, wastewater treatment, and effluent reuse facilities
• Wastewater and air quality management in Benxi: Construction of sewers,
pump stations, and primary wastewater treatment facilities; introduction of an air quality management program, including equipment and
facilities to reduce emissions from two blast furnaces and three coke
ovens and increase their energy efficiency; and provision of district heating to serve some 20,000 households over an area of some 300 hectares
• Wastewater, municipal solid waste, and water conservation management investments in Dalian: Construction of sewers, construction of a new secondary
wastewater treatment plant and the upgrading of the existing plant, and
construction of effluent reuse facilities; introduction of a pilot water conservation and clean technology program; and investments in solid waste
management, including modernization of the municipal collection, transfer and transportation systems, upgrading of the existing disposal facility to sanitary landfill standards, and providing for future landfill gas
utilization
CHINA: LIAONING ENVIRONMENT PROJECT
69
• Water supply system enhancement and protection in Jinzhou: Protection of
groundwater and enhancement of trunk supply, upgrading of the treatment plant and strengthening of the distribution system, and reduction
in pollution and conservation of water by the Jincheng Paper Mill
• Environmental rehabilitation and reconstruction: Recording, rehabilitation,
conservation, protection, restoration, and display of prioritized cultural
heritage assets of world significance, including the Liaoning Great Wall
at Jiumenkou, archeological sites at Niuheliang and Jieshi Gong, and
the Shenyang Provincial Museum
• Liaoning Environment Fund: Creation of a fund for the provision of shortterm finance for focused high-impact investments in in-plant clean technology processes that support the core investments in air and wastewater
management
• Institutional strengthening: Technical assistance and training for supporting and strengthening environmental, financial and utility management and performance monitoring, training, feasibility studies, and
future project preparation
Strategic choices: Liaoning Province, in northeastern China, has a population of about 36 million, including some 25 million urban residents. The
province has a strong urban industrial base. Its basic food supply comes
from farming in several large river basins. The most important of these are
the twin basins of the Hun and Taizi rivers, which represent 20 percent of
the province’s land area, produce about 40 percent of its agricultural and
60 percent of its industrial output, and contain about 13 million people.
Water supply for industrial, domestic, and agricultural purposes depends
heavily on flows from the two rivers. Rapid industrial development combined with inappropriate wastewater management has polluted both surface water and groundwater resources with organic matter, toxic chemicals,
oils, and heavy metals, seriously affecting drinking, industrial, and agricultural water quality. There is an urgent need to raise the quality of the
water in the two rivers to a standard that is environmentally safe, economically usable, and sustainable. The Liaoning provincial government
has begun to curb the discharge of heavy metals and toxic chemicals from
the major polluting industries, with some success. The remaining pollution abatement has to be done at the city level, something that most cities
are still not equipped to do.
Strategies for the effective utilization of the Hun-Taizi water resources
were developed by a river basin management study, which identified and
ranked a set of investments for water resource development and water pollution abatement in specific cities. The study also highlighted deficiencies
in institutional arrangements for water resource management, identified
inadequate urban environmental services, and stressed the need for focused
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URBAN ENVIRONMENT AND INFRASTRUCTURE
water and wastewater investments. A Bank-financed project—the Liaoning
Urban Infrastructure Project, approved in 1990 and implemented by the
Liaoning Urban Construction and Renewal Project Office (LUCRPO)—supports water supply in the basin cities of Shenyang, Fuxin, and Yingkou and
measures that will strengthen industrial pollution control. Implementation
of that project has been rated satisfactory. This project complements earlier projects and finances a priority set of investments focusing on environmental management and pollution abatement.
Institutional arrangements for management and implementation differ.
In addition to LUCRPO, a provincial project office set up by the Liaoning
Construction Commission under the Liaoning Urban Infrastructure Project,
four municipal-level project offices have been established, one each for the
water components in the three project cities and one for urban transport
in Shenyang. LUCRPO is responsible for managing project preparation,
coordinating implementation, and monitoring execution.
LUCRPO is responsible for overall project coordination and macrolevel project management and monitoring; project-wide quality assurance; progress reporting to the Liaoning provincial government and the
Bank, including reporting on cost management, project impact, and environmental improvement assessment; interagency coordination and procurement support; and facilitation of sector training. Municipal-level
project offices have been established in Anshan, Benxi, Dalian, Fushun,
Jinxi, and Jinzhou. The project components for wastewater, air, solid waste,
water supply, heating, and process improvements in Anshan, Benxi,
Dalian, and Jinzhou are being carried out by specific companies. The
activities under the environmental rehabilitation component are being
carried out by the Liaoning provincial government, the Jinxi municipal
government, and the Jimi municipal government. The project component
on environmental impact investments in industrial enterprises is being
carried out by the Liaoning Environment Fund, with the Liaoning
Environmental Protection Bureau acting as the on-lending agency. The
technical assistance and training component is being implemented by
LUCRPO, the Liaoning Finance Bureau, and the Liaoning Environmental
Protection Bureau.
Institutional strengthening and technical assistance activities: The institutional development and policy strengthening components are expected
to enhance policies and operational experience in environmental protection, wastewater reduction, water pollution control, and heritage asset management. These initiatives include the following:
• establishing appropriate pricing policies for management of wastewater,
solid waste, and cultural heritage assets
CHINA: LIAONING ENVIRONMENT PROJECT
71
• improving measures for water pollution monitoring, enforcing water
pollution regulations, and establishing appropriate water pollution
charges
• creating an environment fund to support industrial wastewater treatment facilities, process modernization, and clean technology
• training staff engaged in financial management, water pollution control, and wastewater and municipal solid waste management
• providing technical assistance for studies and future project preparation, including measures to alleviate air pollution, and environmental
infrastructure master planning
• formulating and preparing potential future investment projects
Urban Environmental Aspects
The project targets urban environmental goals 1 (protect and enhance environmental health in urban areas); 2 (protect water, soil, and air quality in
urban areas from contamination and pollution); and 3 (minimize the urban
impact on natural resources at the regional and global scales). The project
builds on prior analytical work that identified interrelated issues of infrastructure and service provision and the environmental management that
affect both quality of life and archaeological and cultural heritage, as well
as the appropriate institutional arrangements. The project takes a holistic
approach to wastewater, solid waste, and air quality management, with a
focus on local and global issues through cross-sectoral interventions. It
includes components that complement earlier Bank projects on water conservation and clean technology, and it introduces an innovative cultural
heritage component within an urban environmental context.
The project uses pollution reduction indicators, including the reduction
in sodium dioxide and total suspended particles to improve air quality in
Benxi and the percentage reduction in nightsoil. It also uses proxy operational indicators, such as enhancement of drinking water quality to achieve
Class HI standard, identification and control of sources of pollution (percent of system connections in each city), and landfill usage to improve
municipal solid waste and nightsoil management. The project lacks environmental health indicators to measure these benefits, however.
Ongoing Implementation
The project is rated satisfactory on development objectives. It is rated satisfactory on all specific rating indices except financial performance and monitoring indicators, where performance has been unsatisfactory. There are no
pending issues. The physical works have been substantially completed, and
water resources along the Hun-Taizi river basin have improved. Project
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URBAN ENVIRONMENT AND INFRASTRUCTURE
agencies are now more focused on institutional reform and financial sustainability issues, including tariff levels and collection. Air pollution measures
have been instituted, and loan savings are being used to make further
improvements to air quality in Benxi. The cultural heritage component has
been substantially completed. Land acquisition and resettlement work under
the project have been completed. In general, project components are contributing to the improvement of the urban environment.
India: Bombay Sewage Disposal
Project
Project Data
Project title: Bombay Sewage Disposal Project (P010480)
Sector: Water and Sanitation
Region: South Asia
Country: India
City and size of city: Mumbai (Bombay), 17.01 million
Sector codes: Sewerage (90 percent), sanitation (10 percent)
Theme codes: Municipal governance and institutions (primary), pollution
management and environmental health (primary), access to urban services
for the poor (primary)
Amount of loan and total project value: US$192 million, US$295.6 million
Fiscal year of approval: 1996
Scheduled closing date: December 31, 2003
Task Team Leader: Shyamal Sarkar, Senior Sanitary Engineer, South Asia
Energy and Infrastructure Unit
Project Profile
Development objectives: This project aims to strengthen the capacity of
the Water Supply and Sewerage Department of the Municipal Corporation
of Greater Bombay (MCGB) in all aspects of managing the provision of
sewerage services; to sustain the financial viability of the provision of water
supply and sewerage services in Greater Mumbai through direct charges to
beneficiaries at appropriate levels; and to improve health and environmental conditions in Greater Mumbai, including conditions faced by slum
dwellers.
Benefits and target population: The project is expected to help dispose of
more than 60 percent of sewage from the Greater Mumbai area, yielding
substantial health and environmental benefits. Together with the three
Bombay Water Supply and Sewerage Projects (BWSSP I, II, and III), the
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URBAN ENVIRONMENT AND INFRASTRUCTURE
project is expected to connect 45 percent of the population of Greater
Mumbai to a waterborne sewerage system capable of conveying domestic
and industrial wastes to facilities for partial treatment and disposal.
Pavement dwellers and slum residents are not served by the system. Some
of their needs will be addressed by the slum sanitation schemes included
in the project.
The slum sanitation component is expected to alleviate the harsh living
conditions of some 1 million slum dwellers—mainly people occupying
municipally owned lands—by improving sanitation facilities, primarily
for safe disposal of excreta. The direct benefits of the project will come from
removing domestic sewage and industrial wastes from the inner city’s natural water courses, surface water drains, shoreline, and beaches. These
efforts will improve the living conditions of the urban population living
near the city’s many open sewers, reduce health risks, and improve the
city’s aesthetic environment.
Project description (components): The project finances the construction
or rehabilitation of sewerage-related infrastructure. Specific components
include the following:
• construction of two submarine tunnel outfall sewers in Worli and Bandra
to convey partially treated sewage effluent to the Arabian Sea
• construction of a pumping station in Bandra
• construction of two aerated sewage treatment lagoons at Ghatkopar and
Bhandup
• construction of facilities to prevent siltation in the influent tunnel at
Ghatkopar
• rehabilitation of the Ghatkopar tunnel
• improvement of the structural stability of five sewage pumping stations
• improvement of conveyance systems
• introduction of slum sanitation schemes
The project also includes technical and social services to help implement
the physical works, upgrade the operational and maintenance capabilities
of MCGB with respect to Mumbai’s sewerage system, and plan and design
a second-stage program to improve health and environmental conditions.
Strategic choices: Mumbai is India’s largest city and the country’s preeminent center of trade, commerce, and finance. It accounts for 30 percent of
the value of India’s industrial production and an estimated 10 percent of
India’s industrial employment. Annual average population growth of 4.3
percent between 1981 and 1991 in the city was significantly higher than the
3.1 percent average for India’s urban areas, and the provision of basic infra-
INDIA: BOMBAY SEWAGE DISPOSAL PROJECT
75
structure did not keep pace with such growth. Over the past 50 years, higher
priority was accorded to water supply than to sanitary sewerage. Together
with financial resource constraints, this emphasis led to a situation in which
only a very small area of the city was served by a piped sewerage system.
The rest of the urban area discharged wastewater indiscriminately into surface water streams, gullies, and open storm-water drains.
Attempts to reverse this situation were undertaken through the Bankassisted BWSSP I, II, and III projects. BWSSP I and II ran into cost overruns
and time delays; BWSSP III focused primarily on water supply. This project is a logical follow-up to the first and second projects. It includes most
of the first stage of development of facilities to partially treat and dispose
of sewage collected and conveyed to proposed treatment and disposal sites
by facilities constructed under the earlier projects. Without this project, it
is conceivable that the benefits of the earlier projects would never be fully
realized.
Under this project, some partially treated sewage from two drainage
areas is discharged into the Arabian Sea at a distance of three kilometers
from the shoreline. Sewage from two other drainage areas is discharged
into tidal creeks after receiving the equivalent of primary treatment.
Although not ideal, this solution is considered a significant improvement
over the previous situation, in which sewage was discharged on the shoreline and into surface water drains and channels in heavily populated urban
areas. Under the project, a time-bound program is to be established, leading to a second-stage program of sewage treatment and disposal facilities
that will upgrade the quality of receiving waters.
Institutional and implementation arrangements (counterparts): The project is implemented by MCGB’s Water Supply and Sewerage Department,
with the assistance of foreign and local consultants. International consultants supervise the major components of the project, including construction of the Worli and Bandra outfalls, the Bandra pumping station, and the
facilities to control siltation in the Ghatkopar Influent Tunnel. Local consultants supervise construction of the Ghatkopar and Bhandup lagoons,
the slum sanitation component, structural improvements in five pumping
stations, and improvements to the conveyance system.
MCGB, the largest municipal corporation in India, was established
under the Bombay Municipal Corporation Act of 1888. The implementing agency for the project, the Water Supply and Sewerage Department
of MCGB, was established in 1973. It is responsible for the planning, development, and operation and maintenance of water supply and sewerage
services in Greater Mumbai. The Municipal Commissioner, MCGB’s principal officer, maintains overall responsibility for the Water Supply and
Sewerage Department.
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URBAN ENVIRONMENT AND INFRASTRUCTURE
Project management of BWSSP II and III was not satisfactory, particularly with regard to their sewerage components. In 1991, following the
Bank’s request for the appointment of a more experienced and senior manager to take control of these projects, management responsibility was
assigned to the Additional Municipal Commissioner, a senior civil servant
from the Indian Administrative Service. This arrangement continues and
has resulted in marked improvement in the overall management of the
Water Supply and Sewerage Department. For this project MCGB maintains
a project management unit in the Water Supply and Sewerage Department.
Specialists manage the slum sanitation schemes, procurement processes,
environmental mitigation, and monitoring plans.
Institutional strengthening and technical assistance activities: Technical
assistance includes project support; studies, site investigations, and engineering for second-stage works; and complementary studies. Consultants
supervise construction; help upgrade the Water Supply and Sewerage
Department’s operation and maintenance practices in the sewerage system;
help conduct required surveys, map the conveyance system, and formulate a program of conveyance system improvements and preventive maintenance; and assist, together with NGOs, in improving sanitary conditions
in Mumbai’s slums.
The project supports planning for higher levels of treatment and
improved disposal methods in sewage treatment and disposal facilities for
second-stage works. This support includes conducting feasibility studies for
second-stage sewage treatment and disposal facilities in six drainage areas
and completing detailed engineering designs for sewage treatment and
disposal facilities in the six drainage areas. The project also supports several complementary technical studies for additional improvements to the
sewerage system. Training programs initiated under BWSSP II and III are
to be continued during implementation of this project. The project also provides training to upgrade the operation and maintenance levels of the entire
sewerage system for Mumbai, and specific training of MCGB personnel to
improve job skills and operation and management efficiency.
Urban Environmental Aspects
The project targets urban environmental goals 1 (protect and enhance environmental health in urban areas) and 2 (protect water, soil, and air quality
in urban areas from contamination and pollution). The entire loan (US$192
million) is allocated to addressing urban environmental issues.
The project integrates the urban environmental issues of infrastructure
and service provision for sewage collection, treatment, and disposal. It aims
INDIA: BOMBAY SEWAGE DISPOSAL PROJECT
77
to build viability in the provision of water supply and sewerage services in
Greater Mumbai through direct charges to beneficiaries, adding to its longterm economic and environmental sustainability. By closing down open
sewers and providing services to slum dwellers, the project improves environmental health and reduces potential loss of life.
The project uses two access to service indicators: the number of sewerage connections and the number of latrine seats constructed. As an environmental health indicator, the project is measuring the number of reported
cases of waterborne diseases. The project is also establishing and measuring health indicators in the slums in which the sanitation schemes are being
implemented.
Ongoing Implementation
The project is substantially completed, except for the sanitation schemes
in slums. The submarine tunnel outfalls at Worli and Bandra and the aerated lagoons at Bhandup and Ghatkopar have been completed and commissioned. All sewerage improvements have also been completed. No-dig
technology was used extensively to install sewers in difficult stretches and
to rehabilitate old sewers. The slum sanitation program implementation,
which started late, is ongoing. Some 212 schemes were expected to have
been completed by the end of June 2003. Another 100 ongoing schemes
were expected to have been completed by the end of 2003.
Changes were made to the conveyance of sewage to the Ghatkopar
lagoons based on a detailed study undertaken during implementation.
Plans to construct facilities to prevent siltation in the influent tunnel at
Ghatkopar and to rehabilitate the existing Ghatkopar tunnel were dropped.
Instead, a new tunnel was constructed.
Major difficulties were encountered in implementing the demand-led
participatory slum sanitation schemes, in which the community was to
share the cost of construction and then take over operation and maintenance responsibilities. These difficulties have been partially overcome,
through a process of learning-by-doing capacity building for stakeholders.
A flexible approach to stepping up implementation has been adopted, and
partnerships have been built between the community, local government
bodies, and civil society.
Key lessons learned from the implementation include the following:
• Design and supervision of complex engineering works and the associated environmental management can be delegated to consultants.
• The right framework for facilitating partnerships among stakeholders
is better developed through initial investment than by learning by doing.
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URBAN ENVIRONMENT AND INFRASTRUCTURE
• Local communities need to develop a sense of ownership and to be
involved in project design if community-based programs are to be sustainable.
• Providing sanitation services to slums is not effective without providing water and electricity.
• Initial assessment and clear identification of baseline data and indicators and the use of appropriate monitoring and evaluation are very
important to support the implementation process and evaluate the impact
of the investments on the ground.
Colombia: Cartagena Water
Supply, Sewerage, and
Environmental Management
Project
Project Data
Project title: Cartagena Water Supply, Sewerage, and Environmental
Management Project (P044140)
Sector: Water and Sanitation
Region: Latin America and the Caribbean
Country: Colombia
City and size of city: Cartagena, 900,000
Sector codes: Water supply (11 percent), sanitation (85 percent), subnational government administration (4 percent)
Theme codes: Access to urban services for the poor (primary), pollution
management and environmental health (primary), other financial and private sector development (secondary)
Amount of loan and total project value: US$85 million, US$117.2 million
Year of approval: 1999
Scheduled closing date: December 31, 2004
Task Team Leader: Menahem Libhaber, Lead Sanitary Engineer, Latin
America and the Caribbean Water and Sanitation Cluster
Project Profile
Development objectives: This project aims to improve the water and sewerage services of Cartagena and the sanitary conditions of the city’s poorest population by expanding water and sewerage coverage, particularly
in the city’s poor neighborhoods; to facilitate the environmental cleanup
of water bodies surrounding the city (Cartagena Bay, the Caribbean beaches,
and Cienaga de la Virgen Lake) by providing adequate collection, treatment, and disposal of the entire flow of the city’s wastewater; and to improve
the sustainability of water and sewerage services in Cartagena by leveraging Bank support to shore up the private sector participation model pioneered by ACUACAR (Aguas de Cartagena, the water and sewerage
company of Cartagena) against political interference.
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URBAN ENVIRONMENT AND INFRASTRUCTURE
Benefits and target population: The project is expected to bring significant public health benefits in terms of sanitation services, especially in the
city’s poor and marginal areas. It will also improve overall standards of
living in the city, especially in poor neighborhoods around the Cienaga
Lake, and reduce urban pollution throughout the city. The project will
enhance socioeconomic development in the region, which depends on
tourism, and bring indirect benefits to the tourism industry by reducing
environmental pollution and public health risks.
About 80,000 people in the city’s poorest neighborhoods (especially in
the San Jose de Los Campanos, El Pozón, Villa Estrella, La Boquilla, Paseo
Bolivar, Zona Suroccidental, and Zona Suroriental sub-basins, which currently discharge their sewage to the Cienaga) will directly benefit from project investments that increase sewerage and water supply coverage. In
Cartagena as a whole, about 750,000 inhabitants will benefit from improvements in the reliability of the water supply service and especially from the
environmental improvements that wastewater collection, treatment, and
safe disposal systems will bring to the Caribbean beaches, Cienaga Lake,
Cartagena Bay, and other water courses that cross the city. The 700,000
tourists who visit Cartagena per year will benefit from the environmental
improvements brought about by the project. While tourism and associated
economic growth depend on a variety of factors beyond the direct control
of this project, the promotion of Cartagena’s tourism industry and its impact
on the city’s economic growth are major indirect benefits.
Project description (components): The project includes the following components:
• expansion of the water supply system to cover water production systems,
increasing water coverage; replacement of the primary distribution mains,
including mitigation of the water treatment sludge environmental impact;
and preparation of a plan for reducing unaccounted-for-water
• expansion of the sewerage system in the Cienaga basin to enhance the
conveyance capacity of sewage collectors that currently drain into the
basin, expansion of secondary sewerage within this part of the city, and
construction of new pressure lines, pumping stations, and gravity collectors in residential areas
• construction of the main wastewater conveyance system, using reinforced concrete pressure pipes
• construction of wastewater treatment installations
• construction of a submarine out-fall
• control of industrial wastewater discharge
• other measures to mitigate the environmental and social impacts of the
project
COLOMBIA: CARTAGENA URBAN ENVIRONMENTAL MANAGEMENT PROJECT
81
Strategic choices: The project addresses three significant sector priorities:
expanding insufficient water and sewerage coverage, giving greater emphasis to the treatment and adequate disposal of wastewater to reduce water
pollution, and supporting private sector participation arrangements to
improve the financial and operational efficiency of water and sanitation
services. Some of the major institutional changes (primarily creation of
ACUACAR as a mixed-capital utility) were supported under a previous
loan, the Water Supply and Sewerage Sector Project (Loan 2961-CO). The
related physical investments were deferred to this project.
The components of this project have been strategically selected to complement investments being implemented with funding from the District
of Cartagena, ACUACAR, and the Inter-American Development Bank (IDB)
in areas that discharge into Cartagena Bay, in the hotel area of Bocagrande,
and in the southwestern part of the city. The project aims to complete the
city sewage collection program and provide treatment and disposal for all
wastewater generated throughout the city. The project is thus key to capturing the full health and environmental benefits of investments made by
all parties.
Institutional and implementation arrangements (counterparts): The borrower for the project is the District of Cartagena. The project is being implemented by a project implementation unit within ACUACAR. ACUACAR
is a well-managed public-private water and sewerage service company
with private management. Its operational performance meets the highest
international standards. The project implementation unit within ACUACAR
is in charge of the entire investment program for all projects financed by
ACUACAR, the District of Cartagena, and IDB. The project implementation
unit worked efficiently with the Bank under the previous loan and during
project preparation, and it is familiar with the Bank’s procurement guidelines as well as project preparation and implementation procedures. It
enjoys the support of the technical department of ACUACAR, which has
a highly qualified staff.
The project implementation unit also has access to the technology and
support of the AGBAR group (Aguas de Barcelona—the water and sewerage company of Barcelona). In addition, consulting firms have helped
the unit design and supervise highly specialized works. Panels of experts,
who served as the project steering committee, have also advised the unit.
The project implementation unit is in charge of designing and supervising
routine works. Its staff had access to substantive training on various aspects
of project management.
Institutional strengthening and technical assistance activities: The project supports several institutional strengthening and technical assistance
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URBAN ENVIRONMENT AND INFRASTRUCTURE
activities, including project management, technical assistance, studies, and
design and supervision of works. These activities include project management; design and supervision of the water supply systems works; design
and supervision of the sewerage systems works; design of the main wastewater conveyance system, treatment installations, and submarine outfall;
supervision of the main conveyance system works; and supervision of the
treatment installation and submarine outfall works. Specific activities supported under project management include the financing of consultants
hired by the project implementation unit; assistance in completing detailed
engineering designs; preparation of bidding documents for the purchase of
equipment and the execution of works; preparation of letters of invitation
and corresponding packages for hiring consultants and carrying out required
procurement processes; and assistance in supervising all works and carrying out the financial management activities of the project.
Urban Environmental Aspects
The project targets urban environmental goals 1 (protect and enhance environmental health in urban areas) and 2 (protect water, soil, and air quality
in urban areas from contamination and pollution). The entire loan (US$85
million) is allocated to addressing urban environmental issues.
The project integrates different urban environmental concerns, such as
provision of water supply in low-income areas, water conservation through
reduction of unaccounted-for water, construction of sewerage network and
wastewater conveyance systems, treatment of wastewater, and environmental cleanup of water bodies in an urban space.
The project addresses environmental health and poverty issues of the
low-income population (arguably leading to reductions in health expenditure and increases in household income). The environmental health benefits of the project cannot be measured, however, because the project does
not include health indicators. The project also aims to improve the economy of the city by providing indirect benefits to the tourism industry. In
doing so, it promotes public-private partnership in ACUACAR and involves
civil society in project design.
The project uses pollution reduction indicators (such as the level of pathogenic coliform contamination along the beaches of Cartagena, the bay,
and Cienaga Lake) and access to services indicators (such as coverage of
water supply and sewerage network).
Ongoing Implementation
Project implementation progress is satisfactory. Implementation of all project components except the wastewater treatment and disposal are well
COLOMBIA: CARTAGENA URBAN ENVIRONMENTAL MANAGEMENT PROJECT
83
advanced. Wastewater treatment and disposal of effluent through a submarine outfall to the Caribbean Sea generated opposition from various
interest groups, which delayed the process of obtaining the environmental
license needed in the wastewater evacuation component.
ACUACAR adopted several strategies to build consensus—a process
that led to the issuance of the environmental license by the regional environmental authority. These strategies included the following:
• expansion of the participatory approach and working with the community to provide information on the impact of the outfall and its benefits (about 250 events have been carried out).
• execution of a publicity campaign on the outfall, including newspaper
articles, radio and television advertisements, and the preparation and
distribution of brochures.
• implementation of a social community development program, including
support for urban rehabilitation, improvement of sanitary conditions,
and cleanup activities; strengthening and development of community
organizations to promote participation and social control; and promotion
of community development to consolidate communities, prevent or
reduce conflicts, and recover cultural heritage, mainly by rehabilitating
the Cienaga.
• organization of a study tour for community leaders and representatives
of the media, the municipality, the environmental authorities, and other
stakeholders to similar outfall sites in Latin America. The group included
about 30 people, who visited outfalls in Chile (Viña del Mar, Valparaiso,
and Concepción); Montevideo, Uruguay; and Guaruja, Brazil. All of these
outfalls are comparable in size to the outfall proposed for Cartagena and
have the same type of preliminary treatment. Unlike the outfall proposed
for Cartagena, all of them are located in front of the most desirable residential areas and beach resorts (in Cartagena the outfall will be about 20
kilometers north of the city). In all sites visited the outfalls are functioning successfully, to the complete satisfaction of all the local stakeholders.
• creation of a panel of five international experts (hired to review the project) with broad experience in wastewater management, design and construction of ocean outfalls, water quality, oceanographic modeling,
environmental impact assessment, and private sector participation. The
panel provided valuable support in clarifying technical issues to stakeholders.
• holding of a series of workshops with groups opposed to the outfall to
explain the scientific, technical, and engineering aspects of the selected
alternative and its advantages over all others.
• financing of participation by representatives of key stakeholders in an
international course on the submarine outfall alternative for final dis-
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URBAN ENVIRONMENT AND INFRASTRUCTURE
posal of sewage for coastal cities in the Caribbean organized by the PanAmerican Health Organization and the World Health Organization in
Barbados in July 2002.
Implementation of these strategies took a long time. Four and a half years
were required to obtain and ratify the environmental license, delaying implementation of the wastewater treatment and disposal component. Despite
the delay, the project is expected to be completed by the closing date.
Guinea: Third Urban
Development Project
Project Data
Project title: Third Urban Development Project (P001074)
Sector: Urban Development
Region: Sub-Saharan Africa
Country: Guinea
Cities and size of cities: Conakry, 1,767,000; secondary cities, fewer than
500,000
Sector codes: Solid waste management (23 percent), roads and highways
(55 percent), subnational government administration (22 percent)
Theme codes: Municipal governance and institution building (primary),
other urban development (primary), pollution management and environmental health (secondary)
Amount of loan and total project value: US$18 million, US$19.5 million
Fiscal year of approval: 1999
Scheduled closing date: June 30, 2004
Task Team Leader: Catherine D. Farvacque-Vitkovic, Lead Urban Planner,
Africa Water and Urban Unit 2
Project Profile
Development objectives: The project aims to improve urban living conditions in Guinea by providing basic priority services to Conakry’s urban
population and by creating an enabling environment for sustained programming, financing, and management of priority investments and services in other major urban centers. In addition, it aims to reinforce the
capacities of municipalities by targeting specific municipal services and by
introducing new tools to improve selection and implementation of infrastructure and basic services benefiting as many people as possible.
Benefits and target population: The project aims to bring about lasting
improvements in the city of Conakry in environmental health, accessibil-
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ity of underserved neighborhoods, the road network, and the revenue and
managerial capacity of the Governorate’s financial services. It also aims to
improve planning, programming, and financing of priority services and
infrastructure maintenance in secondary cities.
The project is expected to reduce the incidence of diseases caused by
poor sanitation and to improve the quality of urban environment through
better solid waste collection and sanitary disposal. About 800,000 inhabitants are expected to benefit from improved garbage collection services
and reduced exposure to sanitation-related diseases.
The provision or repair of access roads for currently inaccessible neighborhoods in Conakry will yield considerable benefits for the residents.
The reduced cost and duration of trips to other areas within the city will
reduce health risks, improve educational opportunities, and increase job
opportunities. Within neighborhoods, it will foster the emergence of local
trade and services and enhance public safety. These advantages will have
the greatest impact on neighborhoods that are most inaccessible and that
typically house the poorest segments of the population. The temporary
hiring of jobless local residents by contractors will bring additional revenues. The construction of primary roads and rehabilitation of secondary
roads will provide easier access for residents of the most populated districts
of Ratoma and Matoto to the administrative and financial services located
in Kaloum; increase mobility and access to urban and social services,
including the Kagbelen landfill; and improve traffic fluidity among neighborhoods and between the capital, the outskirts of Conakry, and the rest
of the country.
In Conakry support for increased mobilization of local authorities will
involve mayors in neighborhood upgrading programs. In secondary cities
mayors will make decisions on priority community improvement investments to be financed by the project.
The project is expected to create about 4,000 jobs by privatizing household garbage collection and street cleaning and promoting the use of laborintensive trash collection techniques. It will also strengthen the managerial
and marketing capacities of more than 30 small waste collection contractors.
The introduction of procedures and programs for routine and periodic
maintenance of secondary roads is expected to substantially increase the
volume of public works that can be contracted out to small contractors in
the informal sector and to consulting firms in Conakry and secondary cities.
Project description (components): The project includes four components:
• The solid waste management component aims to increase the level of
garbage collection and limit the impact of waste production by operat-
GUINEA: THIRD URBAN DEVELOPMENT PROJECT
87
ing, in a sustainable way, the La Minière landfill and setting up a landfill facility at Kagbelen.
• The neighborhood upgrading component aims to support rehabilitation
and maintenance operations on Conakry’s secondary roads.
• The primary road network component aims to reduce traffic at critical
blockage points in Conakry.
• The institutional strengthening component aims to support operational
units and improved financing of priority services, such as solid waste
management and secondary road maintenance, and to finance community outreach programs related to waste management. Assistance to secondary cities supports the decentralization process by helping mayors
better plan for the needs of their municipalities.
Strategic choices: This project has three objectives: to support the decentralization process by including interventions in secondary cities; to improve
urban living conditions, especially in Conakry, by facilitating the population’s access to basic services; and to improve the mobilization of local
resources.
The financing system chosen—in which infrastructure rehabilitation is
financed at a level corresponding to the borrower’s previously demonstrated maintenance capacities—is expected to increase the sustainability
of investments. Unlike the Second Urban Development Project (UPD2),
this project targets the financing needs of solid waste management and
road maintenance. However, since local tax revenues remain the primary
source of financing, efforts to increase local resource mobilization continue
with a more operational approach.
Institutional and implementation arrangements (counterparts): Overall project coordination is the responsibility of the Ministry of Urban Planning and
Housing. The experience of UDP2 showed the need to put in place a streamlined entity charged solely with implementing the project. That entity needs
to be given a single, clear mandate; a procedures manual; and an operating
budget. In this project, therefore, an autonomous project unit is responsible for
project accounts and administrative and financial management. To continue
the considerable institutional strengthening efforts, this project unit relies on
units created under UDP2 and on existing administrative structures, as follows:
• The Public Solid Waste Transfer Service, a public entity of the city of
Conakry, plays a key role in setting up the solid waste management subcomponent.
• The secondary Road Maintenance Unit, created under UDP2 within the
technical services of the city of Conakry, implements the neighborhood
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upgrading component. It is in charge of scheduling works, preparing
bidding documents, and monitoring and implementing works.
• The Urban Development Department (DATU), which received technical
assistance for studies and monitoring of primary road works under
UDP2, continues to perform this function and to be responsible for the
primary road network component.
• The Urban Programming Unit, created under UDP2, continues to update
Conakry’s rapid street addressing system and implement the support
to secondary cities component.
• The project unit, in close collaboration with the National Revenues
Department and the financial services of the Governorate, is in charge
of the component dealing with improving financing for priority services.
Institutional strengthening and technical assistance activities:
Institutional strengthening consists of three main subcomponents. The
first, support for operational units with a key role in implementing the
project, includes assistance in logistical, financial, and human resources
needed to carry out their mandates. This support includes financing
expenditures (except salaries) required to maintain the continuity of the
units’ activities; periodic technical assistance to monitor the work of the
units, guide their activities, and identify their needs; and targeted training, where needed.
The second subcomponent, support for improved financing of priority
services, includes streamlining the financing system of the city, the main
entity responsible for implementing priority urban services; improving the
functioning of the chain of command for the collection of business and
property taxes, the city’s two main sources of revenue; and setting up more
appropriate financial management procedures for the city and communes
of Conakry in order to ensure that adequate resources are allocated to identified priority services.
The third subcomponent, community outreach program, supports an
information, education, and communication campaign intended to increase
awareness of the importance of signing up for garbage collection service,
to explain new institutional arrangements, and to provide information on
the proposed fees charged by private contractors. The program broadcasts
television spots and radio announcements, sponsors sporting events and theatrical performances, conducts information sessions in schools and districtlevel discussions, sponsors neighborhood cleanliness contests, and holds
awards celebrations honoring and encouraging small and medium-size
enterprises that have recruited subscribers or demonstrated efficient management.
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89
Urban Environmental Aspects
The project targets urban environmental goals 1 (protect and enhance environmental health in urban areas) and 2 (protect water, soil, and air quality in
urban areas from contamination and pollution). Most of the loan (77 percent,
or US$13.8 million) is allocated to addressing urban environmental issues.
The project integrates different urban environmental concerns, such as
provision of solid waste collection services and waste disposal, neighborhood upgrading in low-income areas in Conakry, and environmental projects (storm water drainage, flood protection, school latrines with plumbing,
garbage transfer points) in secondary cities.
It aims to improve urban environmental quality and protect environmental resources by investing in sanitary landfills and better waste collection services. It addresses quality-of-life issues through urban upgrading,
thereby attempting to improve environmental health. These benefits cannot
be measured in the absence of environmental health indicators, which the
project lacks. The project does use proxy operational indicators, including
the percentage of open dumps closed and the percentage of solid waste
collected and disposed of in sanitary landfills.
Ongoing Implementation
The project closing date was extended in December 2002 to June 30, 2004.
Progress on the action plan agreed upon at the time of the extension is satisfactory, as a result of the diligent commitment of the coordinating unit.
Counterpart funding by the National Development Bank is satisfactory; loan
reimbursement by the regional government and the City of Conakry, however,
has experienced serious delays. The disbursement rate of the project remains low,
at 35.1 percent as of March 2003, with forecasts of 82 percent by December 2003.
Component I: Infrastructure and Priority Services in Conakry
Solid waste management: The solid waste management component is progressing well. Household collection and transfer to the landfill continue to
improve in terms of quantity of waste collected and transferred. As a result
of the project, 31 small and medium-size enterprises had been created as
of April 2003. Pending issues are renewal of contracts for waste collection
and street sweeping, delays in counterpart funding for the Public Solid
Waste Transfer Service, and financial monitoring of its activities. Progress
indicators for this component include the following:
• Ninety percent of open dumps in Conakry have been eliminated.
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• Eight-nine percent of solid waste generated in Conakry was collected
and disposed of in 2002.
• Some 2,500 new jobs have been created by the small- and medium-size
enterprises that collect waste in Conakry.
• Some 119,000 households have contracted the services of these enterprises to have their waste collected—more customers than those of the
water and electricity utilities.
Neighborhood upgrading: Decentralized programming, complex municipal
participation, and difficulties encountered in mobilizing local counterpart
funding have been the main causes of delays in implementing the project.
As of April 2003, the first tranche of the project was almost fully executed
and the bidding documents for the second tranche had been approved.
Primary roads: The primary roads component is progressing well. The bidding documents for the preparatory works for the T7 and the Voie Express
are ready, and the consultation process for the mission de suivi et de controle
is under way. The project will also include the construction of an access
road at the Gbéssia Airport, which initially was going to be funded under
a now closed credit (PCPEA).
Component II: Support to Secondary Cities
As of April 2003 four municipal contracts had been signed (in Kindia, Labé,
Nzérékoré, and Kankan). The contracts for Labé and Kindia are under
implementation, and municipal audits (leading to municipal contracts) are
being prepared in six other municipalities (Mamou, Kissidougou, Faranah,
Boké, Macenta, and Siguiri). Mayors, town councils, economic operators,
and community groups understand the mechanisms of the municipal contract and are very much engaged in the process of the audits and the identification of their investment and adjustment programs. Unlike in Conakry,
local counterpart funding is available and timely.
Component III: Support to Financing of Priority Services
and Institutional Strengthening
Following a major breakthrough on local taxation in response to a request
made under this project—modification of the clé de repartition of the CFU
(land tax) and the TPU (business tax) between central and local governments—the budgets of the city and of the five municipalities of Conakry
have continued to increase.
República Bolivariana de
Venezuela: Caracas SlumUpgrading Project
Project Data
Project title: Caracas Slum-Upgrading Project (P040174)
Sector: Urban Development
Region: Latin America and the Caribbean
Country: República Bolivariana de Venezuela
City and size of city: Caracas, 3.51 million
Sector codes: General water, sanitation, and flood protection sector (52 percent); housing construction (26 percent); administration of subnational government administrations (12 percent); other social services (health, 9 percent);
and finance of micro- and small and medium-size enterprises finance (1
percent)
Theme codes: Access to urban services for the poor (primary); civic engagement, participation, and community-driven development (primary)
Amount of loan and total project value: US$60.7 million, US$152.9 million
Fiscal year of approval: 1998
Scheduled closing date: June 30, 2004
Task Team Leader: Dean Cira, Senior Urban Specialist, Latin America and
the Caribbean Urban Cluster
Project Profile
Development objectives: This project aims to improve the quality of life of
the inhabitants of selected informal settlements (representing 15 percent
of the informal settlement population) in metropolitan Caracas by developing and implementing a community-driven, sustainable, and replicable
infrastructure improvement program. The project follows the general directives defined by the Plan Sectorial de Incorporación a la Estructura Urbana
de las Zonas de Barrios del Area Metropolitana de Caracas y la Región
Capital (Plan Sectorial). That plan, approved by the Ministry of Urban
Development in 1994, outlines a comprehensive approach for improving
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living conditions in the informal settlements of metropolitan Caracas. The
project also aims to establish a model for implementing the Plan Sectorial.
Benefits and target population: The project targets two separate agglomerations of informal settlements in Caracas: Petare Norte and La Vega.
Together the two agglomerations contain 12 distinct informal settlements
and a population of 184,000. Petare Norte is an agglomeration of four contiguous informal settlements, with a population of 102,000, located in the
municipality of Sucre. The project targets all informal settlements in Petare
Norte. La Vega is located in the municipality of Libertador.
The project is expected to provide direct benefits to the residents of Petare
Norte and La Vega by responding to community priorities by improving
water systems to provide minimum service of eight hours of water, seven
days a week, thereby reducing risks associated with poor water service, eliminating the need to store water, and reducing water losses. It is also expected
to provide properly engineered sewerage to all households, providing direct
health and environmental benefits to the community; improve access to,
from, and within the barrios, resulting in better circulation as well as lower
transport costs for the informal settlement dwellers; improve public lighting in streets and alleyways, increasing safety; reduce the number of families
living in areas of high geotectonic risk or in structurally unsound buildings;
empower communities by fostering community participation and decisionmaking at the local level and providing support to local institutions; and
improve access to housing credit through formal market channels so that
families can expand or improve the physical condition of their housing units.
Project description (components): The project has three components:
• The urban upgrading component finances the design and execution of
community neighborhood improvement plans for designing and executing pedestrian and vehicular access, water distribution, sewerage
and sanitation, drainage, electricity distribution, public lighting, community centers, and new houses for resettlement.
• The institutional development component finances the start-up and
operational costs of the project management unit, including public dissemination, monitoring and evaluation, and technical assistance and
capacity building in several areas.
• The credit component supports the development and operation of a
market-based loan fund that will provide housing credits to the residents of informal settlements for home improvements.
Strategic choices: The project addresses the four main factors that significantly reduce the functionality of the informal settlements: the lack of an ade-
RB DE VENEZUELA: CARACAS SLUM-UPGRADING PROJECT
93
quate definition of property rights, the absence of collective action mechanisms to resolve the problem of providing public goods, the lack of credit
to facilitate housing construction, and the integrated packaging of basic
urban services.
The project aims to grant full property rights to residents of informal
settlement over the sites they currently occupy. Land titling is to be done
through conventional titling procedures. The sites are defined as part of
the process of preparing the neighborhood improvement plans. The expectation of title is to be used as an incentive to partially recover the costs of
project investments through a one-time combined levy. The transfer of title
is provisional until the debt has been paid.
The project also aims to put in place collective action mechanisms by
assigning the responsibility for planning, coordinating, and executing the
project to a special agency, the project management unit located in the
Foundation for Community Development and Municipal Promotion (FUNDACOMUN). The municipalities of Libertador and Sucre are to be strengthened so that they can support the project management unit during
implementation and carry out their legal obligations with respect to the
informal settlements after implementation. The project also makes full use
of NGOs and community-based organizations in metropolitan Caracas for
implementation aspects. Two instruments consolidate community participation efforts: local co-management groups and the neighborhood improvement plans.
Credit for housing construction in the informal settlements is facilitated
by developing a privately funded and market-based program to deliver
housing improvement loans to low-income populations; applying nontraditional lending methodologies to reach low-income populations; establishing a guarantee fund, to be used by participating banks, designed to
demonstrate borrower capacity and willingness to pay as well as provide
a hedge against macroeconomic shock risks; providing technical assistance
to borrowers to ensure that they build with adequate structural integrity,
target priority investments, and receive expected benefits of housing
improvements; and leveraging government resources by providing access
to private funding and allocating risks to those parties best able to manage
or assess them.
Basic urban services are integrated by dealing simultaneously with titling;
providing access to urban services; replacing housing in risk-prone areas;
and providing water, sanitation and drainage, electricity, and public lighting. At the design level, coordination of the package of basic urban services
is ensured through the preparation of neighborhood improvement plans
by communities within each informal settlement, with help from qualified
professionals where necessary. The communities bear direct responsibility
for procurement and management, with help from the project management
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URBAN ENVIRONMENT AND INFRASTRUCTURE
unit, or delegate this responsibility in full to the project management unit,
with the community group acting in an advisory capacity. The capacity of
the community is strengthened through technical assistance and empowerment.
Institutional and implementation arrangements (counterparts): FUNDACOMUN, a decentralized and semi-autonomous national public administration organization under the Ministry of Family Affairs, is the principal
central government executing agency for the project, and the project is run
through a project management unit located in FUNDACOMUN. The organization is responsible for the flow of project funds, including funds for
project management and coordination and funds for project execution. It
provides direction to the project management unit and helps establish
overall policies, execution strategies, coordination, and evaluation of the
project, from its inception to termination. FUNDACOMUN is assisted in
its role as a strategic planner by a consultative council that includes highlevel representatives from the relevant state and local governments, the
Caracas Water Company, the National Housing Institute, and beneficiary
communities.
The project management unit, the semi-autonomous, specialized unit
responsible for coordinating, administering, and executing the project, consists of an executive management unit assisted by a technical commission.
The two are responsible for the overall coordination and management of the
project, including the coordination of all sources of funding. The executive
management unit provides overall coordination, including maintaining
relations with various institutional entities. The technical commission provides technical advice to the executive management unit and facilitates a
permanent interface between the executive management unit and other
institutional entities. Under the executive management unit, four separate
management units are responsible for specific project tasks: the procurement and contracting administration unit, the project administration and
finance unit, the physical planning–project management unit for Petare
Norte, and the physical planning–project management unit for La Vega.
The physical planning–project management units for Petare Norte and
La Vega coordinate and manage the technical aspects of project execution
at the ground level and provide the critical interface between project execution in the field and the executive management unit. They are also responsible for managing all special programs, including resettlement, land titling,
and environmental management; directing and managing the design and
execution phases of the subprojects; coordinating the inspection of plans
and works; and providing direct coordination with construction companies executing the works, local authorities, public utility companies, local
co-management groups, and communities.
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95
In each of the project neighborhoods, a local design office was set up at
the onset of the project to serve as the primary interlocutor in developing
and implementing the neighborhood improvement plans. The local design
office consists of five units: the General Assembly, which approves the
neighborhood improvement plans and ensures that the views of all members of the community are heard; the office of the General Director, who
guarantees the effective, efficient, and equitable execution of the neighborhood improvement plans; the community participation units, which
stimulate and ensure the active participation of communities in the design
and execution phases of the neighborhood improvement plans; the technical assistance and social outreach unit, which assists in the technical
aspects of the design and execution of the neighborhood improvement
plan; and the administration unit, which monitors subproject budgets,
administers the project, and maintains financial control over funds.
Institutional strengthening and technical assistance activities: The institutional development component consists of project management and municipal capacity building. The project management subcomponent financed the
start-up and operational costs of the project management unit, including
public dissemination, monitoring, and evaluation. It also financed a study
to determine the feasibility of setting up the project management unit into
an autonomous metropolitan agency, whose responsibility would be to coordinate and manage investment in the informal settlements of Caracas and
handle project management responsibilities in future projects. The project
also finances studies of project cost recovery and land market monitoring.
The municipal capacity building subcomponent involves developing
an urban cadastral system that can serve as a planning tool for future investment in the two barrios of Petare Norte and La Vega and as the basis for
more fully incorporating these and other informal settlements into the planning cadastres of the municipalities of Libertador and Sucre; establishing
technical norms and standards to develop general indicators of appropriate urban design standards to be followed in urbanization projects in informal settlements; and developing financing and cost-recovery strategies to
increase the municipalities’ capacity to collect taxes and reduce their dependence on intergovernmental transfers.
Urban Environmental Aspects
The project targets urban environmental goals 1 (protect and enhance environmental health in urban areas) and 2 (protect water, soil, and air quality
in urban areas from contamination and pollution). More than one-third of
the loan amount (38 percent, or US$23 million) is allocated to addressing
urban environmental issues.
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The project integrates several urban environmental concerns at the neighborhood level. It combines the provision of water supply and the construction of properly engineered sewerage, to eliminate the current practice of
combining surface water with household wastewater drainage, thus providing direct environmental health benefits to resident communities. By reducing the number of families living in areas at high risk of geotectonic events, the
project also minimizes the potential loss of life due to natural disasters.
The project uses pollution reduction indicators (the percentage of fecal
matter in sewer and drainage canals), access to services indicators (the
number of legal water and sewerage connections), and proxy operational
indicators (kilometers of drainage channel constructed and rehabilitated).
The environmental health benefits cannot be directly measured, because
the project does not provide such indicators.
Ongoing Implementation
The project’s overall rating and rating on development objectives are satisfactory, but its implementation rating is unsatisfactory. The project is in its
final and most critical year of execution. Dogged from the outset by a change
in government, long delays in effectiveness, weak management in the early
years, the natural disaster of 2000, and the national strike of 2000, the project is at least two years behind schedule.
Only about 30 percent of the works planned for 2002 were implemented.
Much of the delay, especially problems in contracting and disbursements, can
be attributed to the project management unit. The process of selecting consulting firms and construction firms took longer than planned, because evaluation committees were not able to meet (due to other commitments), few
construction companies were interested in working in informal settlements,
and FUNDACOMUN duplicated efforts of the evaluation committee.
Disbursements are also lagging. As of September 2003, only about US$8.0
million of the US$60.0 million of loan funds had been disbursed. Reasons for
slow disbursement include the delay in implementation, the lack of capacity on the part of contractors and inspectors to prepare payment requests
on time, the delay in requesting the Bank’s no objection to additional works,
the elimination of systems control, the absence of a costs engineer in the
management and technical team, the national strike of 2000, and the timeconsuming internal review processes. The Bank and the implementing agencies have agreed on steps to improve both procurement and disbursement.
With the 2003 investment plan, new disbursements are expected to be
about US$10 million, which would mean total disbursement of US$17 million by the end of 2003. It is on this target amount that any extension decision will be based.
Nicaragua: Natural Disaster
Vulnerability Reduction Project
Project Data
Project title: Natural Disaster Vulnerability Reduction Project (P064916)
Sector: Urban Development
Region: Latin America and the Caribbean
Country: Nicaragua
City and size of city: 31 secondary cities with populations of less than
500,000
Sector codes: Central government administration (67 percent), subnational
government administration (26 percent), other social services (health, 7
percent)
Theme codes: Natural disaster management (primary), other social protection and risk management (primary), municipal governance and institution building (secondary)
Amount of loan and total project value: US$13.5 million, US$16.05 million
Fiscal year of approval: 2001
Scheduled closing date: March 31, 2005
Task Team Leader: Alexandra Ortiz, Senior Urban Economist, Latin America
and the Caribbean Urban Cluster
Project Profile
Development objectives: This project aims to improve disaster management in Nicaragua by strengthening institutional capability in disaster
management and mitigation at the national level; promoting disaster
awareness and “preventive thinking” through public sector education and
awareness programs; building local capacity to manage disaster emergencies, assess risk, and identify mitigation measures; and implementing
vulnerability reduction and mitigation measures at the local level.
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URBAN ENVIRONMENT AND INFRASTRUCTURE
Benefits and target population: Populations at risk from natural disasters
are the target beneficiaries of the project. Most groups at risk in Nicaragua
are poor and live in marginal urban settlements and rural communities.
The project supports emergency preparedness by ensuring the organization, training, and equipping of emergency response committees in all
municipalities. The project also provides mitigation help to 25 municipalities selected as most vulnerable to natural disasters by carrying out technically supported risk assessments and vulnerability analyses and
developing “preventive” land use plans and specific disaster mitigation
programs. The project implements a small number of high-impact, priority mitigation measures in the 25 target municipalities. The selection process
used to identify highly vulnerable municipalities included a poverty analysis and a hazard risk mapping.
Project description (components): The project consists of six components:
• Strengthening the national system for disaster management: This component
ensures the establishment of a sustainable national system for disaster
management and strengthens its capacity to respond to, prevent, and
prepare for natural disasters by strengthening the institutions of the
Executive Secretariat and of the national system.
• Developing a national mitigation program and strategy: This component aims
to improve the capacity of key technical agencies involved in preparing
mitigation policies and strategies. In addition to a sector coordinator to
manage the component, the project finances a mitigation information
system; development of a resettlement policy for homes at risk from natural disasters; strategic mitigation studies to prepare a seismic vulnerability assessment for Managua, assess watershed vulnerability, and review
and update national building codes; preparation of a long-term national
mitigation program and strategy; and expert technical assistance in local
vulnerability analyses and identification of mitigation measures.
• Building public awareness about disaster prevention: This component aims
to make disaster prevention a part of daily life and culture. In addition
to funding a public relations expert to manage the component, the project finances mainstreaming disaster awareness into formal education, creating a public awareness program, and strengthening disaster knowledge
through the media.
• Strengthening local capacity for disaster risk management: In addition to
financing a territorial coordinator to manage this component, the project
finances consolidation of committees for disaster management and the
promotion of preventive planning.
• Implementing local vulnerability reduction measures: This component supports the Social Emergency Fund in order to develop annual operating
NICARAGUA: NATURAL DISASTER VULNERABILITY REDUCTION PROJECT
99
plans in conjunction with the territorial coordinator for municipalities participating in preventive planning. The Fund selects subprojects, prepares
municipal investment plans, and implements and evaluates mitigation
measures.
• Developing administrative capacity in financial management of the project:
This component develops financial administrative capacity for procurement, contracting and acquisitions, flow of funds, disbursements,
payments, internal and external auditing, and financial reporting.
Strategic choices: Three strategic choices were made at the design stage.
First, the relatively short (three-year) duration of the project reflects a strategy of attending to urgent start-up needs while the national system and
the Executive Secretariat are still being set up; this leaves vulnerability
assessments and studies, which could lead to further support and to a possible follow-up operation. This also calls for the development of plans and
studies that could lead to future activities or projects and for an evaluation
of the Secretariat’s performance at the beginning of the final year of the
project. This evaluation should indicate whether the Executive Secretariat
needs additional strengthening in disaster management, particularly in
disaster preparedness and response, and whether it is ready to undertake
new activities in mitigation and prevention.
Second, the project was designed to complement the work of other donors,
based on careful review of the technical assistance for disaster management
currently being provided to or planned for Nicaragua. The project, therefore,
does not include investments in sophisticated weather and flood monitoring
and early alert systems (with the exception of simple, community-managed
systems) because these systems have relatively high operation and maintenance costs, and several donors, notably Finland, Spain, and the United States,
have made or intend to make contributions in these areas.
Third, project coverage was defined following a careful study of vulnerability in Nicaragua’s 151 municipalities and an assessment of institutional capacity within the national system. A key objective was to cover all
municipalities in the country in terms of emergency preparedness and
response. The complementary but more costly activities associated with
prevention and mitigation are focused on the 25 most vulnerable municipalities. Coverage of the remaining municipalities could be carried out
under a follow-on project or through support from other donors.
Institutional and implementation arrangements (counterparts): The
Executive Secretariat for Disaster Prevention, Mitigation, and Response is
responsible for overall project management and, ultimately, implementation. Within the Secretariat, project management is the direct responsibility of the Planning Department. The Planning Department is also responsible
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URBAN ENVIRONMENT AND INFRASTRUCTURE
for implementing the project component on strengthening the national
system for disaster management. It relies on its various units, the Secretariat’s
Department of Finance and Administration, and on the civil defense system
to implement specific subcomponents. The remaining project components
are the responsibility of different departments of the Secretariat or agencies of the national system. The Secretariat’s Sector Coordination Department
is responsible for developing a national mitigation program and strategy,
its Public Relations Department for building public awareness of disaster
prevention, and its Territorial Coordination Department for strengthening
local capacity for disaster risk management; the Social Emergency Fund is
responsible for implementing local vulnerability reduction measures; and
the Coordinating Unit for Reform of the Public Sector (UCRESEP) is responsible for financial management of the project. These departments and agencies together form the Technical Committee for Project Implementation,
headed by the Planning Department of the Executive Secretariat.
The Technical Committee prepares annual operating plans and budgets,
project progress reports, and the terms of reference for contracts financed
under the project, which it submits to the Planning Department of the
Secretariat. The Planning Department is responsible for passing on approved
operating plans, budgets, and terms of reference to UCRESEP in a timely
way so that it can manage procurement and financial reporting. It is also
responsible for receiving the integrated project management reports from
UCRESEP, reviewing and sharing them with the World Bank and the
Technical Committee, and presenting semi-annual progress reports.
Institutional strengthening and technical assistance activities: Given its
development objectives, all of the project components provide institutional
strengthening, capacity building, or technical assistance. They are delivered through central and local institutions in charge of disaster prevention
and management; their implementation is crucial to achieving the project
development objective.
Urban Environmental Aspects
The project targets urban environmental goal 4 (prevent and mitigate urban
impacts of natural disasters and climate change). The entire loan amount
(US$13.5 million) is allocated to preventing and mitigating the impacts of
natural disasters, in both urban and rural areas.
The project uses the following output indicators: key staff of the
Secretariat identified, hired, and trained by the first year of the project; new
facilities for the Secretariat, including the emergency operations center,
ready by the third year of the project; vulnerability studies and mitigation
strategies developed for Managua and key watersheds and a review of
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101
building codes, which will lead to the development of a national disaster
mitigation plan; the training of 2,000 school teachers in disaster awareness;
the organization of at least 150 local disaster management committees;
hazard and vulnerability assessments, identification of mitigation measures, and preventive planning activities undertaken in at least 25 eligible
municipalities; mitigation measures completed in at least 15 eligible municipalities; and the preparation and identification of financing for a national
disaster emergency plan by the end of project.
Ongoing Implementation
The project is rated satisfactory in terms of achievement of its development
objectives. Progress is being made toward institutionalizing the National
System for the Prevention, Mitigation, and Management of Disasters
(SINAPRED); mainstreaming risk management at the national level; building local capacity to manage disaster emergencies; and promoting public
awareness of risk management and disaster mitigation. An earthquake simulation exercise, carried out in December 2002, was a good test of the functioning of the national disaster management system. A thorough evaluation
of the system highlighted weaknesses in institutional communication and
coordination. Proposals for several key specialized studies, intended to
expand the critical knowledge of national agencies, are being developed.
Municipal disaster prevention and response committees and brigades are
being trained in six municipalities. The interactive Web site, radio soap
opera, and other marketing instruments are proving highly effective. Overall,
there is a change in mentality at the national and local government levels
as well as among citizens regarding risk and disaster management. More
work is necessary to sustain this effort and improve the capabilities to
respond to disaster risks and actual disasters.
The pace of project execution slowed during 2003. Delays occurred in
several subcomponents, most notably in the design of the new headquarters
for SINAPRED, which will also include the Center for Emergency Operations;
analysis of risk and vulnerability and inclusion of preventive planning in
31 municipalities; and acquisition of equipment for 124 municipal rescue
teams. Disbursements are 68 percent below plan. These delays are due to
the presidential order freezing new contracts, which are needed to fill vacancies; the lack of a managerial decision regarding the reassignment of two
subcomponents; and inefficiencies in the procurement processes.
Latvia: Municipal Solid Waste
Management Project
Project Data
Project title: Municipal Solid Waste Management Project (P040553)
Sector: Environment
Region: Europe and Central Asia
Country: Latvia
City and size of city: Riga, 800,000
Sector codes: Solid waste management (48 percent), renewable energy (47
percent), other industry (5 percent)
Theme codes: Pollution management and environmental health (primary),
access to urban services for the poor (primary)
Amount of loan, GEF grant, and total project value: US$7.95 million,
US$5.12 million, US$25.2 million
Fiscal year of approval: 1999
Scheduled closing date: December 31, 2004
Task Team Leader: Anders Halldin, Senior Environmental Specialist, Europe
and Central Asia Environmentally and Socially Sustainable Development Unit
Project Profile
Development objectives: This project aims to introduce modern, self-sustaining management of municipal solid waste in Latvia through the maximum sequestration of methane generated from landfills, thereby reducing
greenhouse gas emissions and creating a revenue stream to cover capital and
operational costs of the improved landfill. Other objectives include simplifying the separation of recyclable material, reducing environmental impacts
on neighbors of the disposal site, demonstrating how outdated and obsolete
disposal sites can be remediated and converted into sanitary landfills to
enable continued operation, and arresting the contamination of groundwater.
The project also aims to demonstrate the feasibility of developing indigenous Latvian landfill gas as an energy source and to decrease the dependence on imported fossil fuel for electricity generation and heating purposes.
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LATVIA: MUNICIPAL SOLID WASTE MANAGEMENT PROJECT
103
Benefits and target population: Expected environmental benefits of the
project include remediation of the existing Getlini site, thereby postponing the establishment of a new site located at least four times farther away;
sequestration of landfill gas from already disposed waste and future waste
generation, thereby reducing the emission of methane; recirculation of
leachate, thereby reducing treatment costs; and demonstration of a technology that makes it possible to utilize other by-products from the decomposition of the waste, thereby prolonging the lifetime of the site and
increasing the revenue stream. The project is also expected to cover its own
costs, result in the cost-effective utilization of an indigenous energy resource,
and produce foreign exchange savings by reducing demand for fossil fuel
for heating purposes.
Project description (components): The project finances the following
activities:
• remediation of the existing disposal site in Getlini
• introduction of technical and operational improvements to meet
European Union sanitary landfill standards
• establishment of a sorting line for separating recyclable materials and
arranging separate areas for the storage of separated material as well as
hazardous waste to be later transported to another site
• establishment of a modern waste management technology based on
energy cells for enhanced degradation of easily biodegradable waste
• collection of landfill gas containing about 50 percent methane
• site generation of electricity by gas engines, with direct delivery to the
grid
• provision of technical assistance through twinning arrangements to
enable the staff of the disposal site to efficiently operate the waste processing system and to achieve maximum revenues from the generated
landfill gas and separated by-products
• provision of managerial assistance during the implementation period
to facilitate the future development of Getlini-Eco Limited (GLE)
These activities are grouped into three integrated investment components and one technical assistance component: remediation of the existing
site to meet environmental requirements regarding leachate treatment and
prevent future groundwater contamination; technical and operational
improvements to meet European Union sanitary landfill standards and
arrangements for improving the separation of recyclable materials; establishment of energy cells for enhanced degradation of easily biodegradable
waste, collection of landfill, and generation of electricity; and technical and
managerial assistance through appropriate twinning arrangements.
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URBAN ENVIRONMENT AND INFRASTRUCTURE
Strategic choices: The project was originally a component of the Municipal
Services Development Project (Loan 34584-LV 1995). Because identification of a new disposal site would have delayed the finalization and implementation of that project, this component was developed as a separate
project.
The original project concept was based on the development of a new
location for the future management of Riga’s waste, given preliminary
indications that the groundwater was threatened by the leachate emanating from the Getlini disposal site. However, a 1996–97 study financed by
the Swedish government found that the contamination of the groundwater was limited to the shallowest Quaternary aquifer; the more important
and deeper aquifers, the Plavinas and Amata (used as resources for the
water supply to Riga) had not been contaminated. The study forecast that
the Plavinas aquifer would show signs of contamination about 2002 and
the Amata aquifer would do so about 2020. It concluded, however, that
the project could prevent additional risks of leachate contamination of the
water supply. The study also indicated that operation of the Getlini site
could continue for another 50 years if the proposed technology were implemented as planned. With further utilization of by-products, the lifetime
of the site would be 100–200 years. The study concluded that investments
based on the collection of landfill gas to generate electricity would provide a cost-effective and sustainable solution to the current waste management problem for Riga.
In view of the large number of disposal sites that need to be either remediated and closed or remediated for continued operation, Latvia has an
important investment program ahead. Given that improved waste management normally results in a substantial increase in the disposal fee, the
development of improved waste management will need to be phased in
to make the changes affordable. This project allows the site to meet Western
sanitary landfill standards without increasing disposal fees. It demonstrates
a replicable technology and deals with the current waste management problems in a cost-effective way.
Rationale for involvement of the Global Environment Facility (GEF) and
other donors: The project is consistent with the guidance for accessing the
short-term climate change window of the GEF operational strategy in that
it is technically, environmentally, and socially sustainable; it is a national
priority in the National Climate Change Mitigation Plan (1995) as well as
in the Environmental National Policy Plan; it provides the means of abating greenhouse gas emissions at a cost of US$3.41 per ton of carbon, far
below the maximum acceptable costs of US$10 per ton carbon; it includes
an essential transfer of technology through twinning arrangements and
managerial assistance during project implementation; and it develops the
LATVIA: MUNICIPAL SOLID WASTE MANAGEMENT PROJECT
105
emission of methane, a potent greenhouse gas, into an indigenous energy
resource.
In addition, the project provides a mechanism for the GEF to support
the development of a cost-effective waste management technology as a
means of reducing greenhouse gas emissions. If successfully implemented,
the project could serve as a paradigm for most of the municipalities in the
Baltic region, all of which must improve the management of solid waste. The
high potential for reducing greenhouse gas emissions led the GEF Council
to approve a grant equivalent of US$5.12 million.
The Swedish International Development Agency (SIDA) has declared
its willingness to support the project with a US$1.5 million investment
grant. Its funding rationale is its belief that the project will eliminate the
ongoing discharge of untreated leachate and polluted runoff water from
the Getlini site to the River Daugava, a tributary of the Baltic Sea. Cleanup
of the Baltic Sea has become an environmental priority for Sweden.
Institutional and implementation arrangements (counterparts): The Riga
City Council has overall responsibility for the project, through a steering
committee. While the city council supervises implementation, realization
of the investments is delegated to the new company, GLE. The company
has a management structure that facilitates the remediation efforts of the
existing landfill and allows it to oversee the production of landfill gas.
Actual operation of the landfill is delegated to the external contractor
through a management contract.
To assist with procurement and disbursements, a project procurement
unit was set up as a separate unit within the Riga City Council, under a unit
head who reports directly to the chair of the project steering committee. To
help the steering committee supervise implementation during the first two
years, an international and a local project adviser were hired. Their role is
to make sure that all necessary documents are prepared and that the permits required to maintain the project’s implementation schedule are obtained.
The technical assistance required for physical project implementation is
being provided through twinning arrangements under the SIDA grant.
The twinning agreement provides expertise to both GLE and the company
contracted for operation of the energy cells.
Institutional strengthening and technical assistance activities: The project finances technical and operational improvements to meet Western sanitary landfill standards; technical assistance through twinning arrangements
to enable the staff of the disposal site to efficiently operate the waste processing system and to achieve maximum revenues from the generated landfill gas and separated by-products; and managerial assistance during
implementation to facilitate the future development of GLE.
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Urban Environmental Aspects
The project targets urban environmental goal 3 (minimize the urban impact
on natural resources at regional and global scales). Its entire loan and grant
amount is allocated to addressing urban environmental issues.
The project takes an integrated approach to solid waste management,
including segregation of recyclable and other waste, reutilization of outdated and obsolete waste disposal sites, introduction of modern waste management technology, collection of landfill gas, and generation of electricity.
The project demonstrates a cost-effective and sustainable solution to the
waste management problem in Riga and reduces greenhouse gas emissions. It thus improves the local environment by reducing groundwater
pollution, surface water pollution, dust and air pollution caused by fires,
noise from activities on the site, and odors from uncovered waste material.
In addition, it reduces imports of fossil fuels by generating 6 megawatts of
power and reduces greenhouse gas emissions, at a cost of US$3.41 per ton
of carbon. The project also substantially improves the working conditions
for people involved in separating and recycling waste material.
As a pollution reduction indicator, it uses the amount of methane captured, setting a goal of at least 13 million Nm 3/year (cubic meters of
methane) as of 2001. It also monitors the quality of groundwater on a yearly
basis. Monthly data are collected on separated waste and on temporarily
stored hazardous waste.
Ongoing Implementation
The implementation of the project began in September 2000; the collection of landfill gas and generation of electricity, which was supposed to
have begun in early 2002, was delayed to the end of 2002 because of contractual disputes between GLE and the buyer Latvenergo. At that time, the
project was generating somewhat less electricity from the existing and
covered landfill than initially expected. To enable a full evaluation of the
project’s results, the amount of gas produced in each energy cell, as well
as the amount of electricity generated, is being closely monitored. The
first energy cell was expected to start generating gas and electricity in
mid-2003. Given the long delays experienced at the outset, the project has
been extended by 18 months, to December 31, 2004.
As of June 2003, Latvenergo had agreed to pay a higher price for electricity, and management had agreed to implement the project by the new
deadline and within the available project budget.
The project is expected to reduce the emission of carbon dioxide equivalents by an average 233,900 tons a year during its lifetime of 25 years. The
project has started to collect landfill gas from the existing landfill and to
LATVIA: MUNICIPAL SOLID WASTE MANAGEMENT PROJECT
107
produce electricity based on the methane content in the gas. Collection
from the existing landfill is consistent with forecasted volumes, but it is
too early to predict if this situation is stable. If so, the project’s environmental benefits would be greater than the forecasted amount of reduced
global emissions. When the project was approved for GEF financing, the
conversion factor for methane to carbon dioxide was 18. Currently, it is 21,
and it is expected to be corrected to 25. Environmental benefits are expected
to increase 17–39 percent if the gas yield is in line with appraisal estimates.
Algeria: Industrial Pollution
Control Project
Project Data
Project title: Industrial Pollution Control Project (P004960)
Sector: Environment
Region: Middle East and North Africa
Country: Algeria
City and size of city: Annaba, 465,000
Sector codes: Petrochemicals and fertilizers (45 percent), other industry
(42 percent), central government administration (13 percent)
Theme codes: Pollution management and environmental health (primary),
environmental policies and institutions (primary), decentralization (secondary), legal institutions for a market economy (secondary)
Amount of loan and total project value: US$78 million, US$118.1 million
(project amended in August 2002; new loan amount is US$36.4 million)
Fiscal year of approval: 1996
Scheduled closing date: June 30, 2005
Task Team Leader: Hocine Chalal, Senior Environmental Specialist, Middle
East and North Africa Rural Development, Water and Environment Group
Project Profile
Development objectives: This project aims to help reduce exposure to hazardous pollution that causes health problems and serious ecological degradation. It seeks to strengthen the institutional and legal framework and
initiate an investment program in the industrial sector of Annaba for mitigating the adverse environmental and health effects of pollution.
Benefits and target population: The pilot investments under the project
are expected to produce several major benefits. The local population of
Annaba will receive relief from pollution, with positive impacts on the
quality of their lives, particularly of children, who represent 40 percent of
the population. From a public expenditure point of view, the project is
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ALGERIA: INDUSTRIAL POLLUTION CONTROL PROJECT
109
expected to reduce health costs, with additional savings on education,
workers’ compensation, productivity losses, and special interventions
related to pollution accidents. The Entreprise Nationale des Engrais et
Produits Phytosanitaires (ASMIDAL) and the Entreprise Nationale de
Sidérurgie (ENSIDER) in Annaba, although not the primary focus of the
project, benefit from improvements in energy efficiency, production efficiency, and product quality, which will reduce worker exposure, improve
management, and increase safety.
The concentration of pollutants in ambient air is also expected to decrease
following mitigation actions. The decrease will be most prominent at point
sources, but concentrations will decline throughout the region. Modeling
based on the proposed mitigation measures forecasts average reductions of
45 percent for particulates, 65 percent for sulfur dioxide, 10 percent for
ammonia, 25 percent for volatile organic compounds, and 5 percent for
nitrogen oxides.
The project is expected to have positive social impacts by reducing exposure of the local population to industrial pollution. The villages of El-Bouni
and Sidi-Ammar, which are exposed to significant industrial pollution
sources, are among the lowest-income groups in the Annaba region. The
project can significantly improve the welfare of these people.
Project description (components): The project consists of two components.
The first focuses on strengthening the institutional and legal framework
through institution building, enhancement of the legal and regulatory framework, design and implementation of a system for monitoring and enforcement, and activation of the National Environmental Fund. The second
component—pilot investments—covers environmental investments at the
ASMIDAL fertilizer complex and the ENSIDER iron and steel complex.
The project was restructured in 2002 and the loan agreement amended in
August 2002. Nondisbursed amounts for the ENSIDER and ASMIDAL components were canceled at the request of the beneficiaries. ENSIDER was being
privatized and the new owners remained committed to the project objectives. ASMIDAL was doing well financially and could obtain attractive financing from other sources. The two companies entered into a voluntary agreement
with the Ministry of Environment, signing an environmental performance
contract affirming their commitment to the project’s objectives.
The opportunity provided by the restructuring of the project was used
to reintroduce a new component, the installation of a hazardous waste
treatment facility. This component had been partially appraised but then left
out of the project because of the government’s commitment to finance it
with its own resources.
The ASMIDAL subcomponent aims to reduce sulfur dioxide, nitrogen
oxides, and dust emissions (phosphate, ammonium nitrate) into the atmos-
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URBAN ENVIRONMENT AND INFRASTRUCTURE
phere and to eliminate phosphogypsum discharges. Major investments
include the following:
• closure, demolition, and decontamination of the sulfuric and phosphoric
acid plants and the import during the first year of phosphoric acid or
monoammonium phosphate to compensate for the production losses
resulting from the decline in activity at the two plants
• rehabilitation of Annaba’s port facility to allow it to import and store
raw materials for ASMIDAL
• rehabilitation of the gas treatment system in the nitric acid plant nitrate
unit
• installation of a scrubber or granulator at the ammonium nitrate plant
• rehabilitation of the granulation units for the production of nitrogenphosphate-potassium and tri-superphosphate fertilizers
• provision of technical assistance and training for plant operation and
for improving workers’ health and safety and the purchase of spare parts
The first, second, third, fifth, and sixth of these subcomponents had been
completed when the project was restructured. Since then, the company has
essentially completed the other subcomponents using its own resources.
The ENSIDER subcomponent aims to reduce emission of dusts, ammonia, and volatile organic compounds in the atmosphere and to reduce industrial discharges into the Seybouse River. Major investments include the
following:
• installation or rehabilitation of dust removal systems for the electric arc
furnace, sintering plants, and blast furnaces and installation of a door
cleaning system in the coke ovens
• construction of two wastewater treatment plants, one for the blast furnace and one for general wastewater
• installation of a boiler for distilling ammonia
• renovation of the biological wastewater treatment plant
• establishment of an environmental laboratory for pollution monitoring
• purchase of spare parts
• institutional strengthening
Only the third and seventh subcomponents were completed before project restructuring.
Strategic choices: Three alternatives were considered for project design: a
technical assistance project for strengthening the institutional and legal
framework in industrial pollution, a comprehensive investment project to
control industrial pollution on a national scale, and an institution-
ALGERIA: INDUSTRIAL POLLUTION CONTROL PROJECT
111
building project supplemented by a limited number of investment-related
activities for addressing the most urgent and critical industrial pollution
problems. The first two options were considered premature because Algeria
does not have the human or financial resources to monitor and control
industrial pollution on a national scale. The third option was found to be
the most feasible, since it would ensure government ownership by strengthening the institutional and legal framework, focusing on those environmental investments that have a large environmental externality to justify
immediate intervention.
The General Direction of the Environment (DGE) of the Ministry of
Interior, Local Government and the Environment is the implementing
agency for the project. Since its preparation, the project has been coordinated by an interministerial committee for coordination and follow-up.
That committee is chaired by DGE and includes representatives of the ministries of health, finance, industry, and petroleum and the National Planning
Council. The committee provides overall policy guidance, reviews work
programs, and resolves interministerial implementation issues relating to
the project. A project implementation unit, with a full-time project manager and competent technical and administrative staff, was established
within DGE. The project implementation unit is responsible for interfacing between the Bank and DGE. It assists DGE in the day-to-day management of the institutional and legal component, reviews and approves the
agreements signed between companies and institutions, and coordinates
the implementation of the different investment subcomponents.
The pilot investment component of the project is managed by the beneficiary enterprises, in close cooperation with DGE and the Regional
Environment Department. On the basis of the audits performed, least-cost mitigating plans were prepared with the appropriate package of investments,
training, and technical assistance. Each enterprise was required to prepare
two documents. The first was a subsidiary loan agreement, to be negotiated
and signed with the Treasury. The second was an agreement to be signed
with DGE that included the pollution levels authorized, as well as the monitoring and reporting requirements that ASMIDAL and ENSIDER had to fulfill. Each enterprise is responsible for its own procurement. DGE and its
project implementation unit maintain regular contacts with each enterprise
and ensure adherence to its implementation and procurement plans.
Institutional strengthening and technical assistance activities:
Strengthening the institutional and legal framework is expected to increase
capacity for policy formulation, monitoring, and enforcement. This added
capacity will increase public expenditures to some degree, but it should
yield major benefits in terms of substantially lowering the current social
cost of environmental and natural resource degradation, keep future costs
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in check, and reduce the inefficiencies of the country’s fragmented system
of environmental protection.
Institution building: This subcomponent aims to strengthen the technical and
administrative capacity of four bodies: (1) the High Council of the
Environment and Sustainable Development, as the cross-sectoral forum for
environmental policies; both subcommissions of the Council that oversee
and review the National Environmental Action Plan; (2) DGE, the national
environmental agency responsible for national policies, preparation of the
National Environmental Action Plan, proposals for legislation, and ensuring operational and technical cooperation; (3) the Ministry of Industry and
Restructuring, the Ministry of Health, and the National Planning Council
in their environmental assessment and audit preparation, health risk assessment, and environmental planning; and (4) the Regional Environment
Departments of Annaba, Skikda, Constantine, Algiers, and Oran in their
monitoring and enforcement activities. This subcomponent also finances
the promotion and introduction of clean technology.
Enhancement of the legal and regulatory framework: This subcomponent provides
the government of Algeria with the administrative, managerial, and technical
tools to review, update, and modify the most important legal texts and regulations derived from the framework environmental law and to eliminate overlaps and contradictions; apply the modified environmental assessment decree
as an effective policy instrument and to develop the appropriate procedures and
sector guidelines; to issue and adopt the modified decrees for the classified
industrial establishments, by issuing environmental permits, by providing
training and technical assistance for handling the transport of hazardous waste,
and by other means; and to conduct a study of environmental liabilities.
Design and implementation of a system for monitoring and enforcement: This
subcomponent aims to design and implement the environment permit
system on a pilot basis in Annaba and Skikda. The permit sets a ceiling on
the amount of pollution that each establishment is allowed to discharge in
a given medium by establishing local environmental guidelines. It also
establishes a program for reducing the total pollution load over a specific
period, consistent with the technology used and the financial status of each
establishment. With this subcomponent, DGE and the corresponding
Regional Environment Department are expected to monitor pollution contracts and test a series of enforcement measures and financial incentives to
mitigate pollution in an integrated manner.
Activation of the National Environmental Fund: This subcomponent aims to
make the National Environmental Fund operational and then expand its
ALGERIA: INDUSTRIAL POLLUTION CONTROL PROJECT
113
role into an effective instrument of environmental financing as an
Environmental Clean-up and Protection Fund. These activities are supported by the implementation of related studies.
Urban Environmental Aspects
The project targets urban environmental goals 2 (protect water, soil, and
air quality in urban areas from contamination and pollution) and 3 (minimize the urban impact on natural resources at regional and global scales).
Its entire loan amount (US$78 million) is allocated to addressing urban
environmental issues.
To mitigate the adverse environmental and health impacts of pollution,
the project takes a comprehensive approach to controlling industrial pollution that includes strengthening institutions, putting in place a legal
framework, and investing in pilot programs. It focuses on the fertilizer
complex and the iron and steel complex at Annaba, aiming to achieve measurable impacts in terms of reduced pollutants, increased energy efficiency
with concomitant production efficiency, and improvements in health. All
of these measures reduce public expenditure on health.
The project uses a quality of life indicator (reduction in perceived respiratory morbidity in El Bouni and Sidi Amar) and pollution reduction
indicators (reduction in particulates, sulfur dioxide, ammonia, volatile
organic compounds, and nitrogen oxides). An ongoing assessment, from
a cost-benefit analysis point of view, looks into the program’s effects in the
Annaba region, where the main benefits are improved public health and
improved coastal sea water quality.
Ongoing Implementation
Progress on development objectives is rated satisfactory. The expected disbursement level at the end of fiscal 2003 was US$21.7 million, or 59.3 percent. The institutional and regulatory strengthening component is also
progressing, with the supply and installation of laboratory equipment and
the continuation of the technical assistance component. The new component
related to the design, construction, and start-up of a hazardous waste landfill is also progressing, albeit with delays.
The equipment acquired for the air quality monitoring networks in Annaba
and Algiers is performing satisfactorily. The air quality in Annaba improved
following the abatement of pollution from the ENSIDER and ASMIDAL industrial complexes. The project is completing a health study to assess respiratory
morbidity in the area. The benefits to human health and to the ecology of the
natural marine ecosystem in the Bay of Annaba, measured in monetary terms
and compared with the costs of the project, will also be estimated.
Kenya, Tanzania, and Uganda:
Lake Victoria Environmental
Management Project
Project Data
Project title: Lake Victoria Environmental Management Project (P046837)
Sector: Environment
Region: Sub-Saharan Africa
Country: Kenya, Tanzania, and Uganda
City and size of cities: In Kenya: Kisumu, 275,000; Webuye, 47,000. In
Tanzania: Mwanza, 300,000; Bukoba, 43,000. In Uganda: Kampala, 1.4 million; Jinja, 89,000
Sector codes: Central government administration (25 percent); general
water, sanitation, and flood protection sector (20 percent); other social services (20 percent); tertiary education (10 percent); animal production (25
percent)
Theme codes: Biodiversity (primary), water resources management (primary), pollution management and environmental health (primary), environmental policies and institutions (primary)
Amount of loan, GEF grant, and total project value: US$35 million, US$35
million, US$77.6 million
Fiscal year of approval: 1996
Scheduled closing date: June 30, 2004, for Tanzania and Uganda; December
31, 2004, for Kenya
Task Team Leader: Richard Kaguamba, Senior Natural Resources
Management Specialist, Africa Environmentally and Socially Sustainable
Development Unit 2
Project Profile
Development objectives: This comprehensive project aims to rehabilitate the
lake ecosystem for the benefit of the people who live in the catchment area,
the countries in which they live, and the global community. The program
objectives are to maximize the sustainable benefits to riparian communities
from using resources within the basin to generate food, employment, and
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LAKE VICTORIA ENVIRONMENTAL MANAGEMENT PROJECT
115
income; supply safe water; and sustain a disease-free environment. It also
aims to conserve biodiversity and genetic resources for the benefit of the
riparian communities and the global community. In addressing the tradeoffs
among these objectives, which cut across national boundaries, the project
also aims to harmonize national management programs in order to reverse,
to the maximum extent possible, the increasing environmental degradation.
Benefits and target population: The main economic benefits of the project derive from avoiding the losses that can be expected if effective action
is not taken. Potential benefits include expansion of artisan fishing and processing, reduction in post-harvest fish losses, implementation of water
hyacinth control, conservation of wetlands, improved pasture management, conservation of catchment soil, extension of rural water and sanitation, upgrading of urban sewerage, and abatement of industrial
pollution.
Project description (components): The project is the first phase of a longerterm program that provides the necessary information to improve management of the lake ecosystem; establish mechanisms for cooperative
management by the three countries; and identify and demonstrate practical, self-sustaining remedies, while simultaneously building capacity for
ecosystem management. The project consists of two broad sets of activities. The first set of activities, which are designed to address specific environmental threats, takes place in a series of selected pilot zones. The second
set of activities, which improves information on the lake and builds capacity for more effective management, is of necessity lakewide in scope.
The project supports the following components:
•
•
•
•
•
•
•
•
•
improvements in fisheries management
research on fisheries
development and enforcement of extension policies on fisheries
establishment of a fish levy trust
introduction of water hyacinth control
management of water quality and ecosystems
management of industrial and municipal waste management
improvements in land use and wetlands management
development of an institutional framework
The industrial and municipal waste management component forms an
interface between water resources management and urban environmental
activities. With a budget of US$9.89 million, this component aims to improve
the management of industrial and municipal effluents and assess the contribution of urban runoff to lake pollution so that alleviation measures can
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URBAN ENVIRONMENT AND INFRASTRUCTURE
be designed. Component activities are expected to prepare inventories and
classifications for all factories and industries in the catchment area, assess
treatment of effluent before discharge and its dilution and dispersion levels
in receiving water bodies, quantify pollution and nutrient flows from urban
runoff, identify and characterize pollution hot spots, formulate guidelines
and effluent discharge standards, establish training arrangements for industrialists and local authorities, launch a public awareness campaign, and
initiate pilot treatment projects in selected municipalities and industries.
Three pilot projects are also included:
• The pilot industrial effluent treatment aims to create wetlands to test
tertiary treatment through filtration of industrial waste from various
sources, such as the Pan Paper Mill in Webuye (Kenya), before it discharges into the Nzoia River; from industries in Mwanza (Tanzania);
and from industries in Jinja (Uganda).
• The pilot municipal effluent treatment supports the creation of wetlands
to test tertiary treatment through filtration of municipal waste in Kisumu
(Kenya), Mwanza (Tanzania), and Jinja (Uganda).
• Priority waste management investments include urgent rehabilitation
or extension of urban sanitation systems that are currently discharging
untreated waste directly into the lake. Under this subcomponent the
project rehabilitates the wastewater treatment works in Kisumu (Kenya),
constructs a community-based simplified sewage scheme in a portion
of Mwanza (Tanzania) to complement the expansion of the water supply
system financed by the European Union, improves a sludge disposal
site in Bukoba (Tanzania), helps the National Water and Sewerage
Corporation in Uganda develop a long-term pollution reduction strategy, and modifies the main effluent discharge into the lake at the Bugolobi
treatment works in Kampala (Uganda) to increase the detention time of
effluent and reduce pollution entering the lake.
Strategic choices: Lake Victoria is an international water body that is of
great economic value to the three riparian countries and of great scientific
and cultural significance to the global community, mainly because of its
unique biodiversity.
The lake and its catchment area suffer from severe urban and rural population pressures. Environmental problems include pollution hot spots,
pollution caused from the inflow of chemical residues from agriculture,
heavy metals concentrations from certain industries, and the inflow of
nutrients from human waste (especially untreated sewage) and soil erosion. The project locates and quantifies these problems, identifies the sources
of nutrients and pollutants, undertakes ameliorative measures, and strengthens existing institutions to sustain solutions over the longer term.
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Developing a framework for concerted action: Attempts at collaboration over fisheries by Kenya, Tanzania, and Uganda go back as far as
1928. Various organizations and coordinating mechanisms were created, but the lack of a strong intergovernmental mechanism for harmonizing such measures made it difficult to establish them on a lakewide
basis. To facilitate such measures, this project supports the establishment of the Lake Victoria Fisheries Organization. The project ensures
that management of regional fisheries management establishes, for the
first time, a regional framework for environmental action rather than
just commercial activities.
Urgent attention is required, through regional cooperation and a regional
management framework, to address environmental issues affecting the
Lake Victoria basin. Discussions to broaden cooperation led to a tripartite
agreement in 1994 for jointly preparing and implementing a Lake Victoria
Environmental Management Program. The essential soundness of this
agreement and its main institutional arrangements worked well during
project preparation. The agreement also constitutes a framework for action
that is fully responsive to the requirements of a strategic action plan that
identifies and analyzes transboundary water-related environmental concerns and expresses determination to jointly build the capacity of existing
institutions and establish new ones for adopting a comprehensive approach
to addressing shared transboundary concerns.
There have been several donor-supported initiatives in and around
Lake Victoria, including those addressing priority environmental concerns. Most of these were small, uncoordinated, and incomplete, and they
seldom addressed issues in an informed manner with wider environmental
priorities in mind. Although often successful in their own terms, these
smaller projects could have achieved even more by being part of a coordinated management initiative to address the problems of the lake ecosystem. The Lake Victoria Environmental Management Project is such a
management initiative. It is expected to have an enormous impact on
improving understanding of the ecosystem and helping policymakers
devise sustainable management strategies.
The project—especially its wetlands component—builds on the
GEF–funded Institutional Support for the Protection of East African
Biodiversity project. It provides the information and builds the capacity
required to coordinate the substantial investments likely to be available for
financing direct actions to reduce nutrient inflows from human waste,
decrease soil erosion, clean up industrial effluent, and reduce pollution.
The Lake Victoria Environmental Management Project is thus seen as the
essential first step in a long-term program for restoring and sustaining the
ecological foundations for economic development in the lake basin and its
catchment areas.
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Rationale for GEF involvement: As one of the world’s largest unique freshwater biodiversity habitats, Lake Victoria was a clear candidate for GEF
assistance under its operational strategy for international waters. That strategy addresses degradation of water quality due to pollution from landbased activities; introduction of nonindigenous species; excessive
exploitation of living resources, leading to potentially irreversible environmental damage; hardship to the poor; and serious health concerns. With
poverty endemic to the region and many competing claims for scarce development resources, the case for GEF support to develop a concerted corrective action for the environmental management of Lake Victoria was
extremely strong.
Institutional and implementation arrangements (counterparts): The three
project coordination offices (one in each country) established during project preparation continue their coordination role during project implementation. The Secretariats serve as the day-to-day central contact points
and information clearinghouses for the implementing agencies in their
respective countries and for all donors supporting the program, gathering
information from the implementing agencies, monitoring the project, and
preparing progress reports. A Regional Policy and Steering Committee
serves as the body for overall program coordination and resolution of any
possible disputes. The Lake Victoria Fisheries Organization coordinates
those components associated with fisheries, although implementation is
the responsibility of the individual national agencies.
Implementation of the industrial and municipal waste management program is led by the Ministry of Land Reclamation, and the Ministry of
Regional and Water Development (Kenya), the Ministry of Water (Tanzania),
and the Directorate of Water Development of the Ministry of Natural
Resources (Uganda). They collaborate with municipal and local councils
and with industry in all three countries; with the Ministry of Commerce
and Industry, the Lake Basin Development Authority, and the Moi
University School of Environmental Studies in Kenya; with the University
of Dar es Salaam in Tanzania; and with the National Water and Sewerage
Corporation and Makarere University in Uganda.
Community participation—including the empowerment of communities
to assume ownership of the programs targeted for their benefit—is considered key to the successful implementation of the program. The project
therefore aims to ensure that the processes of education, communication,
awareness creation, and community participation and motivation are followed consistently and thoroughly throughout implementation.
Institutional strengthening and technical assistance activities: The project emphasizes capacity building and technical assistance. An estimated
LAKE VICTORIA ENVIRONMENTAL MANAGEMENT PROJECT
119
20 percent of project costs are directed toward various studies, and another
42 percent go toward capacity building. Almost all components contain a
mixture of information gathering, capacity building, training, equipment,
and personnel support.
The Lake Victoria Environmental Management Project Secretariat coordinates capacity building programs and is responsible for training. Each
implementing department and agency prepares an annual training plan
and submits it to its national Secretariat. The training plan includes details
on subjects and courses, timing, duration, estimated costs, names and locations of the institutions, names of the people proposed, and the justification for training. The training program includes regional fellowships, study
tours, and on-site training for national, regional, and field staff; selected
community leaders; fishers; farmers; and entrepreneurs.
To address the variations in implementation capacity from country to
country and agency to agency, every subprogram makes extensive provision for capacity building. Provision is made for more than 2,000 shortterm and on-the-job training courses, and at least 600 stakeholder
workshops. The project finances the costs of master’s-level courses for 100
students and of PhD courses for 15 students. Care is taken to strike a balance in the training and its timing so that enough people are available to
implement the project.
The component for the riparian universities strengthens facilities for
environmental analysis and graduate teaching at the Moi University School
of Environmental Studies, at the University of Dar es Salaam, and at
Makarere University. The project has also financed technical assistance to
undertake several studies covering pollution disaster, fish biology and biodiversity conservation, sedimentation, wetlands sustainability, fisheries
management, and other issues. Postgraduate students from the three universities are conducting research under this project (the pilot experiments
with artificial wetlands are being carried out as student research studies, for
example).
The project is financing vehicles and boats; offices; laboratory and field
equipment; laboratory chemicals and reagents; construction of artificial
wetlands; feasibility studies and structures for sanitation; training, workshops, and demonstrations; technical assistance; personnel costs; and operation and maintenance expenditures.
Urban Environmental Aspects
The project targets urban environmental goals 2 (protect water, soil, and
air quality in urban areas from contamination and pollution) and 3 (minimize the urban impact on natural resources at the regional and global
scales). Thirteen percent of the total project cost (US$9.89 million) is allocated
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to addressing urban environmental issues, 90 percent of which is financed
by the Bank.
The project makes use of pollution reduction indicators, namely, reductions in the nutrient and fecal coliform counts from towns bordering the
lake and reductions in sediment and phosphorus loading in rivers flowing into the lake. It also uses environment-related output indicators, including reductions in significant industrial pollutants entering the lake of at
least 50 percent over five years, a measurable reduction in the infestation
of water hyacinth, and stabilization of areas retained as wetlands.
Ongoing Implementation
The project is a multisector and regional initiative on a scale not attempted
in the region since the first East African Community collapsed almost 30
years ago. The development objectives of the project were designed to reestablish regional cooperation to deal with a variety of important ecological, economic, and social problems.
Project performance has continued to be satisfactory in Tanzania and in
Uganda. Kenya has had difficulty implementing the project. As a result of
prolonged government bureaucracy, the flow of funds to the project has
been very problematic. Procurement of goods and services needed by the
project has been considerably delayed. World Bank financing for the Kenya
program ended in December 2002. GEF financing was extended to close in
December 2004. The GEF grant for Tanzania closed in December 2002 and
is 100 percent disbursed. The World Bank credit was extended and will
now close in June 2004. Supplemental World Bank financing of US$5 million was successfully negotiated and is now effective.
Following excellent implementation performance, the project task team
has rated the project highly satisfactory for its Tanzania component. Results
include the following:
• Water hyacinth control activities have achieved 90 percent of the target
in controlling the weed.
• The fish quality laboratory is functioning well.
• Water transport equipment (vessels, boats, and other equipment) is in
place and functioning.
• The water quality monitoring network was established and is functioning.
• Basin-wide land cover/use mapping and erosion hazard potential mapping has been completed.
• Biodiversity and limnology are being monitored.
• Some 511 beach management units have been established.
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121
• Terrestrial and aquatic data collection and monitoring programs necessary to provide information needed for sensible management decisions
have been initiated.
• An object-oriented approach to problem-solving has been introduced.
• Strong regional collaboration and cooperation by scientists and managers to address lakewide problems have begun.
• Institutions and the staff working in them have been strengthened to
achieve a critical mass of resources needed to manage lake basin
resources.
• Tools needed to undertake multidimensional management of the lake
basin have been developed.
• Local communities, NGOs, community-based organizations, and local,
regional, and national governments have been engaged in comanaging
the natural resources of the basin.
The Bank and the government of Tanzania have agreed that the remaining year of the project will be used to consolidate the gains achieved to
date. Uncompleted works will be completed, results will be documented,
information will be disseminated and data collected, the application of all
resource management strategies developed will be intensified, fish quality standards will be maintained and improved, and biodiversity monitoring will be continued.
Preparation of the Lake Victoria Environmental Management Project II
has begun. A stocktaking exercise is being conducted to inform the preparatory process for the new project. Its findings should help improve measurement of performance indicators.
The project is completing the acquisition of critical scientific knowledge
and information and consolidating the human resources and skills developed over the project period. By 2003 all outstanding procurement actions
had been completed, 90 percent of those enrolled in graduate training had
completed their studies and returned to duty stations, 15 manuscripts had
been prepared for publication, and most of the data and reports had been
copied onto CDs for safekeeping. A Web site for the project in Tanzania
containing important information on the management plan has been
updated. The project has been participating in global forums for exchange
of knowledge and experiences.
Poland: Krakow Energy
Efficiency Project
Project Data
Project title: Krakow Energy Efficiency Project (P065059)
Sector: Energy
Region: Europe and Central Asia
Country: Poland
Cities and size of cities: Krakow, 783,000; Skawina, 24,000
Sector codes: District heating and energy efficiency services (100 percent)
Theme codes: Climate change (primary), pollution management and environmental health (secondary)
Amount of loan and total project value: US$15 million, US$78.4 million
Fiscal year of approval: 2001
Scheduled closing date: December 31, 2007
Task Team Leader: Peter Johansen, Senior Energy Specialist, Europe and
Central Asia Infrastructure and Energy Services Department
Project Profile
Development objectives: This project aims to improve the energy efficiency of the heating systems in the Krakow region by continuing the modernization of the district heating systems (a municipal service), helping
consumers decrease their heat energy consumption by improving the energy
efficiency at the end-user level, and developing the knowledge and mechanisms necessary for financiers to fund end-user energy efficiency projects.
The loan is planned to be complemented by a US$11 million GEF grant
intended to remove barriers to market-oriented transactions and increase
public and private sector investments in energy efficiency in buildings. The
GEF contribution is planned to include both guarantee and grant facilities.
Benefits and target population: The project benefits include a more efficient and cost-effective supply of heat in the Krakow region; lower and
more affordable energy bills; enhanced comfort in public, residential, and
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123
commercial buildings; better local air quality; and reduction in greenhouse
gas emissions.
The direct project beneficiaries are the customers of the Municipal District
Heating Enterprise (MPEC) in Krakow. They are expected to benefit from
a more efficient district heating network, with lower operating costs, better
service, and controllable heat use. Spillover benefits will affect all Krakow
residents as the environment improves. State and municipal authorities
are also expected to benefit, as a result of the improvement in the quality
and delivery of district heating. Energy service company (ESCO) financing mechanisms would relieve the state and municipal budgets from upfront
capital investments and reduce future operating budgets.
All residents of the region will benefit from the reduced environmental
impacts of more efficient energy services to buildings in the region. Poland
as a whole will also benefit from the country’s reduced contribution to
global greenhouse gas emissions.
ESCO activity will develop the skills of local engineers and contractors
in energy management retrofitting. If the ESCO process is successful, its
procedures, coupled with local commercial bank financing of new energy
conservation investments through joint ventures, could be disseminated
throughout Poland.
Project description (components): The project consists of three components: district heating modernization, ESCO financing, and technical assistance. The first component replaces old, inefficient, and outdated equipment
with new, more efficient models of boilers, lights, motors, and other equipment in order to improve hot water distribution. The second component
finances energy-saving capital investments (principally goods, materials,
and installation works). The third component provides external consulting services to support MPEC and the ESCO in business strategy development, energy auditing, measurement and verification of savings, and
legal aspects of performance contracting.
Strategic choices: The district heating sector needs to substantially improve
its financial performance in order to provide an adequate return on capital
to attract investments and make district heating enterprises attractive for
privatization. From a sector perspective, the Bank is continuing its policy
dialogue with the government to support sector policy development, including bringing about accounting and auditing improvements and tariff regulations that are conducive to private sector participation while meeting the
government’s social objectives in the sector. From a project perspective, the
Bank is helping MPEC finance its modernization program during the transition period (when real tariff increases are unlikely) and improve its financial performance to a level sufficient for private or commercial financing.
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The project aims to address the major barriers to energy efficiency, including the following:
• Insufficient access to project financing: The ESCO will act as a commercial
company engaged in self-sustaining energy efficiency investments,
thereby demonstrating the viability of relying on guaranteed savings in
operating costs to pay back its investments and the loans of commercial
banks.
• Lack of information about the financing aspects: The ESCO will seek to
increase energy efficiency in the Krakow region by creating awareness
about energy-saving opportunities. These efforts may encourage other
contractors to become more active in implementing similar projects and
lead to the creation of other ESCOs.
• Lack of confidence that savings will accrue: The ESCO will demonstrate the
viability of energy management actions by bringing together the experience of all relevant players and assuming implementation and financing risks for its clients in its initial projects.
• High transaction costs: Demonstrating project successes will help lower
transaction costs. Some ESCOs will be able to aggregate several sites
for one owner under one financing agreement, opening up opportunities that otherwise would have remained elusive in uneconomic small
sites.
• Lack of an adequate institutional structure: The project will introduce
ESCO–type financing arrangements and have the utility-based ESCO
become a major source of information about energy performance contracting for private and public energy users and the aggregator of demand
for capital for projects.
Institutional and implementation arrangements (counterparts): MPEC
coordinates implementation of the overall project and directly implements
the district heating modernization component. The ESCO is responsible
for implementing the ESCO component, with the help of external consultants where needed. A project implementation plan coordinates and guides
the implementation efforts of MPEC and the ESCO; a project implementation agreement between MPEC and the ESCO specifies their tasks and
responsibilities.
Institutional strengthening and technical assistance activities: The Bank’s
policy dialogue in the energy sector has concentrated on supporting the
government’s efforts to restructure the sector into a deregulated, competitive market. A technical assistance program provided by the Bank and by
the Energy Sector Management Assistance Programme (ESMAP) is helping
to complete the regulatory framework and strengthen the operational capac-
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125
ity of the energy regulatory authority (URE). Established in December 1997
under the new energy law, URE plays a key role in regulating tariffs for
network fuels (district heating, electricity, and gas). Building on earlier
ESMAP–funded support to draft the energy law and help establish URE, the
follow-up ESMAP program will help URE implement the regulatory and
sector reforms and advise on necessary changes to the legislation in light
of experience.
Urban Environmental Aspects
The project targets urban environmental goal 3 (minimize the urban impact
on natural resources at the regional and global scales). Its entire loan amount
(US$15 million), as well as the proposed GEF grant (US$11 million) is allocated to addressing urban environmental issues.
The project takes an integrated approach to addressing the problems of
the aging district heating infrastructure, energy inefficiency, and poor air
quality in the Krakow region. It coordinates energy efficiency improvements by replacing old, inefficient equipment with new, more efficient boilers, lights, motors, and other equipment for improved hot water distribution.
Energy efficiency interventions are designed to reduce the impact of emissions at the local and regional levels and the impact of greenhouse gas emissions on a global level.
The project uses two pollution reduction indicators: emission reductions
of local air pollutants (sulfur dioxide, nitrogen oxides, and particulates)
and the reduction in greenhouse gases (carbon dioxide) associated with
the quantified energy savings (an output indicator).
Ongoing Implementation
The project is at an early stage of implementation (the loan became effective only in July 2002). Progress on development objectives has not yet been
assessed. The district heating component is on track, while the ESCO component is behind schedule. Loan disbursement started immediately after
loan effectiveness, with retroactive financing of US$0.9 million. Since then
several contracts have been signed, bringing cumulative commitments to
about US$3.174 million (21 percent of the total loan amount), which is satisfactory for the first year of project implementation. As of June 2003, loan
disbursement stood at US$1.5 million (10 percent of the loan).
Consultant reviews indicate that implementation of the district heating
component is progressing satisfactorily. Eight contracts relating to the district heating component have been signed.
Initial selling activity of more efficient equipment has focused on housing cooperatives, private buildings, and boiler houses for industrial plants.
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Public procurement rules have made the large municipal market more difficult to enter than expected. The Bank is working separately on helping
the Office of Public Procurement understand the ESCO process and possibly develop special directives and standard bidding documents to support ESCOs in Poland.
The ESCO finds itself in as good a situation as might be expected on the
sales front in virgin markets, with staff learning sales techniques, and better
than expected on the financing front. The key challenge will be to increase
both sales and implementation capacity, while getting banks to extend
larger amounts and longer maturities.
Mongolia: Improved Household
Stoves in Urban Centers Project
Project Data
Project title: Improved Household Stoves in Urban Centers Project (P068108)
Sector: Energy
Region: East Asia and Pacific
Country: Mongolia
Cities and size of cities: Ulaanbaatar, 700,000; rural centers, fewer than 100,000
Sector codes: Climate change (50 percent), access to urban services for the
poor (25 percent), vulnerability assessment and monitoring (25 percent)
Theme codes: State enterprise/bank restructuring and privatization (primary), other financial and private sector development (primary)
Amount of grant and total project value: US$750,000 (GEF), US$1.57 million
Fiscal year of approval: 2001
Scheduled closing date: March 31, 2005
Task Team Leader: Salvador Rivera, Senior Energy Specialist, East Asia
and Pacific Energy and Mining Sector Department
Project Profile
Development objectives: This project has three objectives. It aims to reduce
coal fuel consumption––and corresponding carbon dioxide emissions and
levels of indoor and outdoor air pollution––in the tradition housing (ger)
areas of Ulaanbaatar in a sustained way. It aims to facilitate the creation of
a market-based institutional delivery system for establishing reliable manufacturers of efficient indoor coal stoves and developing small energy service provider companies. Also, it aims to replicate project benefits to other
areas in Mongolia, particularly in rural centers.
Benefits and target population: Ger areas are found primarily around builtup urban areas. Dwellings in these areas are usually traditional felt tents,
although they may include wooden houses, and in both such dwelling
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types coal-fired stoves are used. The inhabitants of ger areas in Ulaanbaatar
and other centers will benefit through savings on fuel purchases and through
improved indoor air quality. The urban population at large will benefit
from improvements in ambient air quality. Energy service providers will gain
from skills and business training.
Successful implementation of the project could cause overall annual coal
consumption in gers to fall 30 percent after four years and up to 40 percent
subsequently—the equivalent of 10 percent of families’ annual income,
with a payback period of four months for the individual investment. During
the first three years, most of the low-income consumers, or about two-thirds
of the population in the ger areas, are expected to have improvement kits
installed in their traditional stoves.
The key assumption underlying the project is that there is considerable
latent demand for improved stoves and stove improvements that can be
met by supplying goods and services through this project. It is also assumed
that households will opt for improved stoves if critical information and
necessary services are made available to them.
Project description (components): The project includes five components:
• Social marketing and increased awareness: Production and dissemination
of information on the benefits of improved stoves, the nature and size of
the market, and credit mechanisms for facilitating project goals
• Quality assurance to increase consumers’ trust: Establishment of a certification process for stove manufacturers and stove improvements, and
upgrading equipment for testing improved stoves and stove improvements
• Capacity building: Training technicians, and providing technical assistance and skills training in evaluating new stove improvements
• New product facility: Evaluation and dissemination of new technical and
institutional options to reduce high initial transaction costs to consumers
• Monitoring and evaluating: Evaluation of project’s implementation progress
and achievements
Strategic choices: Mongolia has one of the highest levels of greenhouse
gas emissions per capita and greenhouse gas emissions per dollar of GDP
in the world. During the long, bitterly cold winter, smoke sits above its
towns. Air pollution is the leading cause of respiratory complaints and diseases and a major contributor to child and adult morbidity.
The primary sources of carbon dioxide emissions and air pollution are
the 70,000 coal-fired urban stoves concentrated in the poor ger districts of
Ulaanbaatar, where about 300,000 of the city’s 700,000 people (43 percent)
live; the combined heat and power stations; and more than 200 heat-only
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129
boilers that provide heat to areas not served by the central heating grid.
Coal-fired urban stoves are estimated to contribute 30–65 percent of
Ulaanbaatar’s air pollution. Indoor cooking stoves consume about 350,000
tons of coal a year, with annual emissions of about half a million tons of
carbon dioxide.
Improvement of household stoves was identified as a high-priority action
in the 1995 National Environmental Action Plan. The government is trying
to rehabilitate combined heat and power stations with support from the
Asian Development Bank (ADB) and bilateral agencies.
The 1998 ALGAS report, produced by ADB, GEF, and the United Nations
Development Programme (UNDP), identified improvements in coal stove
efficiency as one of the 14 options for mitigating greenhouse gas emissions
in the energy sector. Stove improvements ranked fourth in terms of potential for reducing carbon dioxide emissions and sixth in terms of cost effectiveness. The combined ranking placed them among the top three options
rated high in terms of both feasibility and local benefits, namely, loss reduction in electricity and district heating systems, improvements in vehicle
fuel consumption efficiency, and improvements in coal stove efficiency.
Loss reduction in electricity and district heating systems has been the subject of a major government program supported by the Bank and ADB.
Improvement in vehicle fuel consumption efficiency is a government priority and is included as a mechanical and vehicle emissions inspection program in the World Bank–supported Transport Development Project.
Improvements in coal stove efficiency is the subject of this project.
Sociocultural issues: Buddhist beliefs run deep among the inhabitants of
the ger district. A sociocultural issue that received attention during preparation is the impact of the widely held belief in the golomt, the hearth/fire
spirit. The golomt is the highest being in the household. It dwells within
stoves, bringing peace and good luck to those within the ger or house. The
stove occupies the center of the ger, whose construction begins with its
mounting. Apart from its important utilitarian purposes of heat and cooking, the stove symbolizes ties with the family’s ancestors. One is not allowed
to stretch one’s legs toward the stove, throw trash into it, or bring sharp
pointed objects close to it. Desecration of the stove is a sin and an insult to
the master of the house.
The golomt can be passed from parent to “best” child at the discretion of
the parents. The decision to change to a new stove requires consideration
of the golomt. When a new stove is installed, a lama, or priest, takes ashes
from the old one to place in the new one and prays that the golomt will
reside in the new stove and bring blessings on the family as before. The
reason there is no significant market for second-hand stoves is because a
buyer would not know about the golomt of the previous owner.
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The work of the team preparing the project’s social marketing component
included consideration of the golomt, and the component will both build
on and be sensitive to the constraints (“desecration” of the stove during
installation of kits) and opportunities (having the project activities viewed
as beneficial and respectful to the golomt). As part of the consultation process
during project preparation, the project team benefited from the participation of the Supreme Lama as advisor on aspects related to the handling of
fire and ashes by technicians. The Mongolian Women’s Federation has also
been involved with most aspects of project preparation. Through its good
contacts with khoroo (subdistrict) chairmen, it has helped stove manufacturers conduct in situ trials of stoves.
Other sociocultural issues were brought to the attention of the stove
testers and designers during the survey work. These include householders’ need to be able to see the fire and to be able to feel the heat of the stove
directly from the side of the stove. These considerations were incorporated
into project design.
Institutional and implementation arrangements (counterparts): The
Ministry of Nature and Environment is the executing agency, through a
project implementation unit. It is implementing the project in partnership
with the Ulaanbaatar municipality. The ministry has designated one of its
own staff as part-time project coordinator. The project coordinator reports
to a steering committee chaired by the State Secretary at the Ministry of
Nature and Environment and comprising stakeholder representatives,
including the municipal government.
The project also funds a full-time project manager, housed at the Ministry
of Nature and Environment; a part-time accountant; and other staff to deal
with day-to-day management. Project execution is being carried out, to a
large extent, under contracts to local NGOs with extensive experience and
good track records implementing development projects in the ger areas.
Institutional strengthening and technical assistance activities: The project supports the evaluation, testing, and distribution of improved stoves
and the development of institutional delivery systems for disseminating
improved inexpensive summer woodstoves for cooking; briquettes (supported by UNDP); and new, improved stoves, kits, and best practices for
saving coal and fuel wood. It helps stove manufacturers prepare business
plans to finance expansion of workshop facilities to expand production
capacity of improved stoves and stove improvements. Two manufacturers
have already conducted discussions with local small- and medium-size
enterprises to provide US$150,000 to finance the expansion of their workshops. The project also supports follow-up surveys to measure the acceptability of new products by consumers.
MONGOLIA: IMPROVED HOUSEHOLD STOVES IN URBAN CENTERS PROJECT
131
To reduce high initial transaction costs to consumers, the project helps
the Stove Manufacturing Association organize exhibits and develop open
market centers at stove selling centers in Ulaanbaatar; trains personnel in
and otherwise supports the launching of open market centers as initial
retailing delivery systems, including organization of initial centers; and
facilitates technical assistance supported by a US$500,000 grant from the
Japan International Cooperation Agency to supply steel for stove manufacturers at competitive market prices.
Urban Environmental Aspects
The project targets urban environmental goals 1 (protect and enhance environmental health in urban areas), 2 (protect water, soil, and air quality in
urban areas from contamination and pollution), and 3 (minimize the urban
impact on natural resources at the regional and global scales). Its entire
grant amount (US$750,000) is allocated to addressing urban environmental issues.
The project integrates different urban environmental goals on local and
global scales, such as reducing indoor and outdoor pollution, coal fuel consumption, and greenhouse gas emissions in ger areas in Ulaanbaatar and
other settlements.
The project uses a pollution reduction indicator (reduction in carbon
dioxide emissions from household stoves) and proxy operational indicators, which include the adoption by households of improved stoves and
best practices by about 40,000 households, establishment of at least two
profitable manufacturers of stove improvements and 20–40 small service
providers to retrofit traditional stoves with improved kits, and the adoption
of improved stoves in rural centers.
Ongoing Implementation
The project has achieved its original goals of raising awareness among consumers in the Ulaanbaatar area about options for reducing coal consumption, introducing quality control standards certification, increasing the
availability of improved stoves, and establishing distribution centers in ger
areas. A parallel government-sponsored program supports the manufacturing of about 8,000 improved stoves, which the project is helping to distribute.
A mid-term project review is planned for 2004 to address areas in which
further work and realignment are required. The project aims to improve
institutional implementation arrangements, with local stakeholders—
including NGOs, the municipality, and local artisans—becoming the driving
force during implementation, as current arrangements rely too much on
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URBAN ENVIRONMENT AND INFRASTRUCTURE
centralized government implementation. The new emphasis will encourage supporting small artisans in the production of improved stoves and
small service companies that introduce improved but lower-cost heating
stoves and improved traditional stoves. The project will also ensure that
the distribution becomes the prerogative of market operators rather than of
the project implementation unit.
China: Guangzhou City Center
Transport Project
Project Data
Project title: Guangzhou City Center Transport Project (P003614)
Sector: Transport
Region: East Asia and Pacific
Country: China
City and size of city: Guangzhou, 5.28 million
Sector codes: Roads and highways (75 percent), general transportation
sector (25 percent)
Theme codes: Access to urban services for the poor (primary), municipal
governance and institution building (primary), pollution management and
environmental health (secondary)
Amount of loan and total project value: US$180 million, US$600 million
Fiscal year of approval: May 29, 1998
Scheduled closing date: December 31, 2004
Task Team Leader: Yan Zong, Transport Specialist, East Asia and Pacific
Transport Sector Unit
Project Profile
Development objectives: This project aims to improve the accessibility of
the city center of Guangzhou by promoting the efficient use of the urban
transport system in an environmentally sustainable way.
Benefits and target population: The project is expected to reduce transport
bottlenecks that slow socioeconomic development and reduce passenger
and freight transport costs, lowering the price of goods and facilitating the
marketing of products. The traveling public as well as the commercial and
industrial producers will benefit directly through improved access to, from,
and within the commercial center of Guangzhou. Public transport passengers and nonmotorized road users are expected to benefit from bus, bicycle,
and pedestrian segregation and channelization facilities.
133
134
URBAN ENVIRONMENT AND INFRASTRUCTURE
The project is designed to achieve more effective management and sustainable maintenance of road assets, including better utilization of existing road capacity, improved value for public money spent on roads, and a
better fit between road maintenance activities and municipal budget allocations. The project is expected to contribute to improved health and quality of life for the citizens and users of Guangzhou’s city center by reducing
motor vehicle emissions and air pollution.
Project description (components): The key project components and their
subcomponents include the following:
• Inner ring road and Guangfo radial road: Land acquisition and resettlement,
viaduct and road construction, other works, materials, and construction
management and supervision
• Traffic management and safety: Traffic management, traffic signs and signals, road safety, Guangzhou inner ring road traffic monitoring and management, parking control, and project management
• Public transport: Institutional reform, maintenance depot, public transport
equipment, bus demonstration program, and project management
• Vehicle pollution control: Introduction of unleaded gasoline, a vehicle
inspection and maintenance program, an automated motor vehicle pollution monitoring system, Guangzhou vehicle emission research center,
and project management
• Road maintenance: Equipment, road maintenance system, and project
management
• Technical assistance: Strengthening the Guangzhou inner ring road, environment protection, traffic management and safety, public transport
improvement, motor vehicle pollution control, road maintenance, resettlement, transport planning and traffic engineering, and the Guangzhou
city center transport project office
Institutional and implementation arrangements: The Guangzhou municipal government is the executing agency for the project. A project leading
group, composed of the management of project implementing agencies and
headed by a vice-mayor of the Guangzhou municipal government, has overall responsibility for project coordination. The project office is responsible to
the project leading group for the organization and management of project
implementation. The principal implementing agency is the Guangzhou City
Center Transport Construction Company, a new entity established to manage
the construction and implementation of the Guangzhou inner ring road.
Strategic choices: No single project can address all the transport sector
issues found in Guangzhou, some of which require provincial or even
CHINA: GUANGZHOU CITY CENTER TRANSPORT PROJECT
135
national policy attention (for example, industrial policy affecting the automotive industry). Project choices were based on consideration of the issues
that the Guangzhou municipality is already addressing, the most pressing
needs, and the areas in which the Bank can best offer assistance.
The project includes components that address the following transport
sector issues within the context of local priorities and development plans:
• supply of new infrastructure to alleviate congestion and provide needed
new capacity
• traffic management based on functional hierarchy of roads, channelization, and operational and regulatory aspects
• public transport operational efficiency
• inadequacies in road maintenance management
• mitigation of motor vehicle air pollution
• institutional strengthening and capacity building
Institutional strengthening and technical assistance activities: This component aims to strengthen institutional capacity for planning, administering, and managing public programs by supporting the following:
• domestic training, including lectures, training courses, study tours, and
on-site training
• international training, including study tours, university training, and
on-site training
• domestic and foreign consulting services
• research, development, and study of various topics
• software and communications and transport equipment
Urban Environmental Aspects
The project targets urban environmental goal 2 (protect water, soil, and air
quality in urban areas from contamination and pollution). It aims to reduce the
level of air pollution by introducing traffic management measures and improving coordination among responsible agencies. The 26.7 kilometers of urban
road development is expected to ease long-term traffic congestion in the city
center, improve the quality of urban life, and stimulate economic development. To address urban environmental issues, a portion of the loan is allocated to a motor vehicle emission control component. Funds from the project
are also allocated to preparing an environmental action plan that supports
specific mitigation measures for noise control, construction impacts control,
project vicinity landscaping, and environmental supervision.
The main indicators include an improved level of service and reduced
congestion on the city center road network, increased throughput of public
136
URBAN ENVIRONMENT AND INFRASTRUCTURE
transport corridors within the city center, reduction in relative levels of mobilesource air pollution, reduction in the number of accidents per capita, and
improved effectiveness and efficiency of the road maintenance program.
Ongoing Implementation
Throughout implementation the project has been rated satisfactory in terms
of achievement of development objectives and implementation progress. A
project restructuring was completed in April 2003. The project was expanded
to US$600 million from the original US$586.1 million, while the loan size was
reduced from US$200 million to US$180 million. The main amendments
are the addition of the Guangfo radial road, the reallocation of project components, the cancellation of US$20 million in lending, and the extension of
the loan to December 31, 2004.
The environmental benefits are beginning to emerge. Carbon monoxide
levels have fallen from a baseline of 2.54 mg/m3 throughout the city and 3.02
mg/m3 in the city center to a citywide average of 2.29 mg/m3. Nitrogen
oxide levels have fallen from a baseline of 0.139 mg/m3 throughout the
city and 0.162 mg/m3 in the city center to a citywide average of 0.113 mg/m3.
The level of total suspended particulates (TSP) has fallen from a citywide
baseline of 0.213 mg/m3 to 0.150 mg/m3.
Institutional strengthening with a direct bearing on the urban environment has included recruitment of permanent environmental staff in the
Guangzhou municipal government; a joint effort by the Guangzhou municipal government, the Environment Protection Bureau, the Environmental
Monitoring Center, the Planning Bureau, the Traffic Management Bureau,
and the traffic police to develop motor vehicle emission control strategies
and noise mitigation measures; establishment of a permanent environmental hotline; and the building of capability of the local environmental
assessment team.
Design for a Guangzhou vehicle emission research center has been completed, and bidding for contractors and equipment suppliers is proceeding.
The automatic air quality and noise monitoring system upgrading is also
in the bidding stage. About 6.5 kilometers of noise barriers—much more
than the 3.6 kilometers planned in the environmental action plan—have
been erected along sensitive sections of the project roads. Double-glazed
windows and air conditioning have been installed in two schools as a pilot
project and will be erected in other impacted sensitive areas. The open space
in the vicinity of the project roads has been landscaped as planned.
Several changes were introduced during design, construction, and
operation:
• The least problematic road alignments were selected.
CHINA: GUANGZHOU CITY CENTER TRANSPORT PROJECT
137
• Porous asphalt was used extensively to create quieter road surfaces.
• Longer prefabricated structures were used to minimize the number of
joints.
• Noise barriers were used at road sections near sensitive receptors.
• Changes were made to the motor vehicle emission control component,
including changes to strategy development, the motor vehicle emission
research center, the inspection and maintenance program, and the citywide automatic air quality monitoring system.
Several difficulties have been encountered so far in project implementation. These difficulties include the lack of environmental awareness of
the municipal government, design teams, contractors, and the general
public; disagreement between the Bank and the environmental assessment
team on interpreting and implementing regulatory standards, such as noise
standards; and weak enforcement of environmental standards and mitigation measures.
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Index
air quality, see water, soil, and air
quality (project goal 2)
Algeria, Industrial Pollution
Control Project, 32, 108–113
Bombay Sewage Disposal Project
(India), 28, 73–78
brown agenda, xiv, 3, 8, 59–60
Business Warehouse, 9
Caracas Slum-Upgrading Project
(Venezuela), 30, 91–96
Cartagena Water Supply,
Sewerage, and
Environmental Management
Project (Nicaragua), 28, 79–84
case studies, xviii–xix, 3–4, 63–64
Bombay Sewage Disposal
Project (India), 28, 73–78
Caracas Slum-Upgrading
Project (Venezuela), 30, 91–96
Cartagena Water Supply,
Sewerage, and
Environmental Management
Project (Nicaragua), 28,
79–84
Energy sector, 33–34
Environment sector, 32
Transport sector, 35
Urban Development sector,
29–30
Water and Sanitation sector,
27–28
China
Guangzhou City Center
Transport Project, 35,
133–137
Liaoning Environmental
Project, 28, 67–72
city size, xvi–xvii, 36–40, see also
tables, charts, and figures
emphasis on small cities, xvii,
36–37
regional variations, 37–38
sector contributions, 39, 40
strengths and weaknesses of
Portfolio, 57
urban environmental goals,
38
World Bank projects analyzed
by, 36–37, 39–40
civil society, xvii, 42–44
climate change, see natural disasters and climate change (project goal 4)
Earth Summit (United Nations
Conference on Environment
and Development), 1992, xiv,
5
Energy sector, 32–34
Environment sector, 31–32
145
146
URBAN ENVIRONMENT AND INFRASTRUCTURE
environmental health (project goal
1), xiv, 8, 19, see also urban
environmental goals
environmental indicators, 51–55,
59
expanded brown agenda, xiv, 8,
59–60
GEF (Global Environment Facility)
grants, 9, 104–105, 118
geographic distribution, see
regional distribution
Global Environment Facility (GEF)
grants, 9, 104–105, 118
goals and objectives, see also
Millennium Development
Goals; urban environmental
goals
Third Urban Development
Project (Guinea), 85–86
Urban Environment Portfolio
Review, xiv–xv, 3–4
Guangzhou City Center
Transport Project (China), 35,
133–137
Guinea, Third Urban
Development Project, 30,
85–90
holistic approach, 60–61
Improved Household Stoves in
Urban Centers Project
(Mongolia), 34, 127–132
India, Bombay Sewage Disposal
Project, 28, 73–78
indicators measuring progress,
51–55, 59
industrial enterprises, small or
medium-size, 58
Industrial Pollution Control
Project (Algeria), 32,
108–113
informal sector, 58
information resources, 9
institutional strengthening and
technical assistance, xvii, 20,
46–48
Kenya, Lake Victoria
Environmental Management
Project, 32, 114–120
Krakow Energy Efficiency Project
(Poland), 34, 122–126
Lake Victoria Environmental
Management Project (Kenya,
Tanzania, and Uganda), 32,
114–120
large cities, see city size
Latvia, Municipal Solid Waste
Management Project, 32,
102–107
Liaoning Environmental Project
(China), 28, 67–72
local governments, xvii, 41–43,
45
medium-size enterprises, 58
Millennium Development Goals,
xiv, xvii–xviii, 9, 11
indicators measuring, 52–55
Portfolio Review methodology,
9, 11
strengths and weaknesses of
Portfolio, 57
Mongolia, Improved Household
Stoves in Urban Centers
Project, 34, 127–132
monitoring indicators, use of,
51–55, 59
multidisciplinary approach,
60–61
Mumbai (Bombay) Sewage
Disposal Project (India), 28,
73–78
INDEX
Municipal Solid Waste
Management Project (Latvia),
32, 102–107
Natural Disaster Vulnerability
Reduction Project
(Nicaragua), 30, 97–101
natural disasters and climate
change (project goal 4), xiv, 8,
see also urban environmental
goals
project focus on, 20
recommendations, 59–60
natural resources (project goal 3),
xiv, 8, 19–20, see also urban
environmental goals
Nicaragua
Natural Disaster Vulnerability
Reduction Project, 30,
97–101
objectives, see goals and objectives
performance indicators, 51–55, 59
Poland, Krakow Energy Efficiency
Project, 34, 122–126
portfolio, see Urban Environment
Portfolio
portfolio review, see Urban
Environment Portfolio
Review
private sector involvement, xvi,
43–45
Project Appraisal Documents,
10–11, 51
Project, Policies, and Strategies
database, 9
quality of urban environment
tracking, 49–50
water, soil, and air (see water,
soil, and air quality (project
goal 2))
147
World Bank commitment to,
5–8
Rapid Urban Environmental
Profiles, 61
recommendations, xix–xx,
59–61
regional distribution, xvi, 16–18,
see also tables, charts, and figures
city size, 37–38
energy sector, 33–34
environment sector, 31–32
sector contributions, 25
strengths and weaknesses of
Portfolio, 57
transport sector, 34–35
urban development sector,
29–30
water and sanitation sector,
27–28
República Bolivariana de
Venezuela, Caracas SlumUpgrading Project, 30, 91–96
sanitation
Water and Sanitation sector,
27–28
sector contributions, xvi, 22–35, see
also tables, charts, and figures
city size, 39, 40
energy sector, 32–34
environment sector, 31–32
indicators measuring progress
by, 53, 54, 55
institutional strengthening and
technical assistance, 46, 48
local counterparts, 44–45
recommendations, 60–61
regional distributions, 25
strengths and weaknesses of
Portfolio, 56–57
148
URBAN ENVIRONMENT AND INFRASTRUCTURE
transport sector, 34–35
urban development sector,
29–30
urban environmental goals,
25–26
water and sanitation sector,
27–28
sewage, see sanitation
size of cities, see city size
Slum-Upgrading Project, Caracas,
RB de Venezuela, 30, 91–96
small cities, see city size
small enterprises, 58
sociocultural issues, Improved
Household Stoves in Urban
Centers Project (Mongolia),
129–130
soil quality, see water, soil, and air
quality (project goal 2)
Staff Appraisal Reports, 10–11
strategic planning and choices,
60–61
Tanzania, Lake Victoria
Environmental Management
Project, 32, 114–120
technical assistance, see institutional strengthening and technical assistance
Third Urban Development Project
(Guinea), 30, 85–90
Transport sector, 34–35
Uganda, Lake Victoria
Environmental Management
Project, 32, 114–120
United Nations
Conference on Environment
and development (Earth
Summit), 1992, xiv, 5
World Bank partnerships, 6–7
Urban Development sector,
29–30
Urban Environment Portfolio, ix,
14–21, see also more specific
entries
levels and types of investments,
14, 16
quality of overall World Bank
portfolios compared to,
49–50
strengths and weaknesses,
56–58
trends in, 14, 15
Urban Environment Portfolio
Review, ix–x, xiv, see also case
studies
findings, xv–xviii
goals and objectives, xiv–xv,
3–4
information resources, 9
methodology, xiv–xv, 9–13
quantitative profile, xv
recommendations, xix–xx,
59–61
Urban Environment Thematic
Group, ix, 7–8
urban environmental goals, xiv,
xv–xvi, 3, 8, see also specific
goals (environmental health,
water, soil, and air quality,
natural resources, natural
disasters and climate change)
project activities related to,
12–13
project focus on, 18–21
sector contributions, 25–26
urban environmental quality, see
quality of urban environment
Venezuela (RB de), Caracas SlumUpgrading Project, 30, 91–96
Water and Sanitation sector,
27–28
INDEX
water, soil, and air quality (project
goal 2), xiv, 8, see also urban
environmental goals
project focus on, 19
strengths and weaknesses of
Portfolio, 57–58
World Bank
portfolio of urban environment
investments (see Urban
Environment Portfolio)
programs and activities, 5–8
quality of overall World Bank
portfolios compared to
Urban Environment
Portfolio, 49–50
sector and theme codes, 9–11
urban environment goals (see
urban environment goals)
149
This volume presents the findings of the first systematic effort to review the Bank’s commitments to improving urban environmental quality. The brown agenda became an important
part of international development assistance following the United Nations Conference on
Environment and Development (Rio de Janeiro, 1992). In order to improve the livability and
quality of life in cities of the developing world, urban environmental issues need to be given
increased attention.
Urban Environment and Infrastructure: Toward Livable Cities sets out the Bank’s current
urban environmental goals, framed as the expanded brown agenda:
1.
2.
3.
4.
Protecting and enhancing environmental health in urban areas
Protecting water, soil, and air quality in urban areas from contamination and pollution
Minimizing the urban impact on natural resources at the regional and global scales
Preventing and mitigating urban impacts of natural disasters and climate change
This book shows that the Bank has more than US$12 billion of active commitments that
address the expanded brown agenda. These are mostly in the Water and Sanitation, Urban
Development, Environment, Energy and Transport sectors. The Bank’s current investments
are primarily directed at providing the much needed infrastructure and basic environmental
services, especially for the urban poor. However, abating air pollution, mitigating and adapting to climate change and urban impacts of natural disasters are some of the emerging challenges that need to be more fully addressed in the future.
“The Bank’s preparation and release of this report is an incredibly important step in the effort to
understand and improve urban environments. The investment of money in the impressive number
of projects, as well as time in collecting and analyzing the data, is a testament to the Bank’s
increased focus in this area.”
Bradford S. Gentry, Yale University, New Haven
“Of particular interest is the approach followed in the project, a combination of empirical analysis,
case studies, and consultations. Not only does it provide an overall assessment of the World Bank
funding for urban environment activities, but also reveals the gaps in such projects through the case
studies and consultations.”
Kaushik Deb, The Energy and Resources Institute, New Delhi
THE WORLD BANK
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ISBN 0-8213-5796-4
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Lead City University , Ibadan Nigeria
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University of Aberdeen
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