Angola - Post-Conflict Social Recovery Project

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The Post Conflict Social Recovery Project (PCRP) will test, in a limited number of target areas, a program to support war affected rural activities. The lessons gained from the experience of implementing the project are intended to serve as a basis for the design of a larger post-conflict social project aimed at enhancing the capacity of recipient communities in war affected rural areas to reestablish normal economic and social activities. The project consist of two components. The first is technical assistance to help the Government continue to strengthen a reintegration strategy to provide a comprehensive and consistent framework across sectors and provinces for planning and implementing the rehabilitation and integration need of all war affected segments of the population. The second will test the Municipio Recovery Program (MRP) for its potential for wide-scale replication in war impacted areas of Angola. In particular, it will test (I) the approach and (ii) the delivery mechanism of the MRP.
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Document of The World Bank Report No: 17546 ANG PROJECT APPRAISAL DOCUMENT ONA PROPOSED LEARNING INNOVATION LOAN IN THE AMOUNT OF US$5 MILLION EQUIVALENT TO THE REPUBLIC OF ANGOLA FORA POST-CONFLICT SOCIAL RECOVERY PROJECT March 31, 1998 Institutional and Social Policy Africa Region CURRENCY EQUIVALENTS Currency Unit = Readjusted Kwanza (Exchange Rate Effective US$1=RKw 210,000) FISCAL YEAR October-September ABBREVIATIONS AND ACRONYMS CAS Country Assistance Strategy FAS Social Action Fund IAPSO Interagency Procurement Services Office ICB International Competitive Bidding IDA International Development Association IDP Intemally-Displaced People 10 Implementing Organization IOM International Organization of Migration LIL Learning and Innovation Loan MINARS Ministry of Social Assistance and Reintegration MRP Municipio Recovery Programn NCB National Competitive Bidding NGO Non-Governmental Organization PCSRP Post Conflict Social Recovery Project PCSRPU Post Conflict Social Recovery Project Unit PPF Project Preparation Facility SOE Statement of Expenditure UCAH Humanitarian Coordination Assistance Unit -- United Nations UNDP United Nations Development Programme UTNITA National Union for the Total Independence of Angola Vice President: Callisto Madavo Country Director: Barbara Kafkca Sector Manager: Roger Sullivan Cluster Leader/Task Team Leader: Laura Frigenti/Lucy Keough Angola Post Conflict Social Recovery Project CONTENTS A. Project Development Objective ..................................................3 1. Project development objective and key performance indicators ........................................3 B. Strategic Context ...................................................4 1. Sector-related CAS goal supported by the project ................................................... 4 2. Main sector issues and Government strategy ....... ............................................4 3. Sector issues to be addressed by the project and strategic choices ....................................5 C. Project Description Summary ...................................................6 1. Project components ................................................6 2. Key policy and institutional reforms supported by the project ....................................... 10 3. Benefits and target population ............................................... 10 4. Institutional and implementation arrangements ......................... ...................... 10 D. Project Rationale .................................................. 11 1. Project alternatives considered and reasons for rejection ............................................... 11 2. Major related projects financed by the Bank and/or other development agencies ........ .... 12 3. Lessons learned and reflected in proposed project design .............................................. 12 4. Indications of borrower commitment and ownership ..................................................... 13 5. Value added of Bank support in this project .................................. 13 E. Summary Project Analyses .................................. 14 1. Economic .................................. 14 2. Financial .................................. 14 3. Technical .................................. 14 4. Institutional .................................. 14 5. Social ........................ 14 6. Environmental assessment ........................ 15 7. Participatory approach ........................ 15 F. Sustainability and Risks ........................ 16 1. Sustainability ..................... 16 2. Critical risks ..................... 16 3. Possible controversial aspects ..................... , 18 G. Main Loan Conditions ....................... 18 1. Effectiveness conditions .................... 18 2. Other .................... 18 H. Readiness for Implementation ....................... 18 I. Compliance with Bank Policies ....................... 19 Annexes Annex 1. Project Design Summary Annex 2. Detailed Project Description Annex 3. Estimated Project Costs Annex 4. Procurement and Disbursement Arrangements Table A. Project Costs by Procurement Arrangements Table B. Thresholds for Procurement Methods and Prior Review Table C. Allocation of Loan Proceeds Annex 5. Project Processing Budget and Schedule Annex 6. Documents in Project File Annex 7. Statement of Loans and Credits Annex 8. Country at a Glance Map Angola Post Conflict Social Recovery Project Project Appraisal Document Africa Regional Office AFCO3 Date: March 31, 1998 Cluster Leader/Task Team Leader: L. Frigenti/L. Keough Country Director: Barbara Kafka Sector Manager: Roger Sullivan Project ID: AO-PA- Sector: Social Program Objective Category: PV 45644 Lending Instrument: LIL Program of Targeted Intervention: [X] Yes [ ] No Project Financing Data [] Loan [X] Credit [] Guarantee [I Other [Specify] For Loans/Credits/Others: Amount (US$m/SDRm): US$5 million equivalent/SDR3.7 million Proposed terms: (IDA) [] Multicurrency [ Single currency, specify Grace period (years): 10 [ Standard Variable [ Fixed [ LIBOR-based Years to maturity: 40 Commitment fee: NA Service charge: 0.75% Financing plan (US$m): Source Local Foreign Total Government 0.5 0.5 Cofinanciers IBRD IDA 1.5 3.5 5.0 Other (specify) Beneficiary Contributions 0.4 0.4 Total 2.3 3.5 5.9 Borrower: Republic of Angola Guarantor: Responsible agency: Ministry of Social Assistance and Reintegration Estimated disbursements (Bank FY/US$M): 1998 1999 2000 2001 Annual 0.6 2.2 1.8 0.4 Cumulative 0.6 2.8 4.6 5.0 For Guarantees: NA [] Partial credit [ Partial risk Proposed coverage: NA Project sponsor: NA Nature of underlying financing: NA Terms of financing: Principal amount (US$) NA 2 Final maturity NA Amortization profile NA Financing available without guarantee?: NA [ Yes [ No If yes, estimated cost or maturity: NA Estimated financing cost or maturity with guarantee: NA Project implementation period: 3 years Expected effectiveness date: 6/1/98 Expected closing date: 9/30/2001 3 A: Project Development Objective 1. Project development objective and key performance indicators (see Annex 1): Angola's decades-old civil war has left more than 2.0 million people displaced, mainly from the central, agriculturally rich Plan Alto region of the country.' As conditions permit, these people can be expected gradually to return to their former communities. The proposed Post Conflict Social Recovery Project (PCSRP) LIL would test, in a limited number of target areas, a program to support war affected rural communities in their efforts to reintegrate displaced people and revitalize community-level economic and social activities. The lessons gained from the experience of implementing the LIL are intended to serve as a basis for the design of a larger post-conflict social project aimed at enhancing the capacity of recipient communities in war affected rural areas to reestablish normal economic and social activities. The reasons which justify the LIL mechanism, as opposed to a larger project at this time, are the following: * need to develop and test an appropriate package of support measures and delivery mechanisms -- there is a need to develop a reintegration support program for all of Angola's displaced people. Although the current uncertain implementation environment makes it impossible to implement a larger scale program immediately, present conditions are sufficiently settled in a limited area to permit pilot testing of a program and associated delivery mechanisms; * need to strengthen capacity -- this has two aspects. The LIL would provide continuing support to a small project unit has been established within the Ministry of Social Assistance and Reintegration (MINARS). While this unit has shown good progress thus far in implementing a limited number of pilot subprojects, it needs to build up its experience and capacity in order eventually to be able to implement a larger scale program. There is, in addition, a need to strengthen the country's on-going efforts to formulate a Reintegration Strategy to address the needs of all displaced segments of the population -- narnely, intemally displaced people, demobilized soldiers and their dependents and retuming refugees -- within a coherent framework which would coordinate the interventions of other extemal partners; * incomplete information on conditions in potential project areas -- throughout the worst affected parts of the country, information on the status of recently reestablished communities and their developmental priorities is incomplete and may only gradually become available. Many of these areas have been inaccessible for many years, as result of a combination of political, military and security factors. The LIL will provide technical assistance to undertake social and economic analysis as an input into the design of a larger project; * risky implementation environment -- among those parts of the country which experienced the worst war damage, some have realized progress in resolving security concems and restoring minimum levels of social and political stability, while others are likely to have to confront conditions of insecurity and political instability for some time. However, even in those areas which have seen progress, the situation remains fragile. Under these circumstances, it is prudent to begin with a modular approach which can test a project concept in a limited number of areas with a limited commitment of IDA funding, before moving on to a larger operation. 1.1 Key Performnance Indicators. The PCSRP LIL will test an operational model and an implementation mechanism for providing assistance to war affected rural areas in Angola. As a LIL, the success of this experience will be determined by the ' This figure includes the internally displaced who number some 1.5 million (about half of whom are in camps and half in squatter settlement in urban and peri-urban settings), 315,000 refugees in neighboring countries and ex-UNITA combatants and their dependents who number 300,000 or more. 4 quantity and quality of information which it generates on a number of levels, the sustainability of the systems and procedures established during the pilot phase and what types of pilot operations have the most impact in the initial target areas. Together, this body of information will provide a basis for determining the potential for replicating and/or modifying this approach on a larger scale in other war affected parts of the country. Key performance indicators will measure the technical and managerial capacity of the project unit. Likewise, the efficiency and cost effectiveness of implementing organizations will be evaluated. Finally, the impact of subprojects to be implemented in target communities would be assessed by a range of indicators, including: the extent to which returning people remain settled in recipient communities in the target areas; the revitalization of economic and social activities within target areas, including, inter alia, increase in access and use of social infrastructure and services (health, education and safe water); increase in the area under (mainly subsistence) crop production in the targeted communities rejuvenation of local markets trading in local materials. Finally, there should be some -- albeit to varying degrees -- evidence of stronger community organization within the assisted areas. (See Annex I.) If the package of measures and the delivery mechanisms prove successful in helping communities to reintegrate returning displaced people -- and assuming that the peace process continues to consolidate and political and security conditions throughout the war damaged areas of the country are resolved sufficiently -- there would be justification for implementing a program on a larger scale in other war affected areas of the country. B: Strategic Context 1. Sector-related Country Assistance Strategy (CAS) goal supported by the project (see Annex 1): GAS document number: NA Date of latest CAS discussion: NA Due to the on-going conflict in Angola in recent years, there is not a current CAS. However, an interim transitional strategy, designed to guide Bank interventions in Angola for the next 12-18 months has been prepared and will be discussed with Government in April 1998. The over-arching objective of this strategy is to assist Angola in its post conflict transition by helping to consolidate the peace process, restore social confidence, alleviate poverty and restore equitable growth in a market-based environment with transparent and accountable mechanisms. This project directly addresses one of the main prongs of this strategy, namely support for the reintegration needs of the most vulnerable groups, including the displaced population, demobilized soldiers, returning refugees and communities most affected by the war, in a manner which will revive social confidence and contribute to a durable peace. 2. Main sector issues and Government strategy: A key objective of social reconstruction for the Angolan Government will be to demonstrate to the population, especially those in the most heavily war damaged areas, that peace means not only an end to the fighting, but also the beginning of economic growth and better living standards. In this context, the Government has begun to define an overall strategy to support the return and reintegration of all displaced people and to coordinate the interventions of all concerned ministries and external partners. This strategy has several interrelated goals: (i) Revitalization of agriculture: Restoration of Angola's once thriving agriculture sector, along with a concomitant reduction in food aid, is a major goal of post conflict reconstruction. Security concerns and lack of access in many areas have crippled many aspects of rural economic activities. Revival of the rural economy will begin at very localized levels and develop incrementally, with heavy reliance on the rehabilitation of rural economic infrastructure, including roads, water points and markets. In 1996, total cereal production was about 200,000 tons, only about half of the annual level during the 1970's. The incidence of malnutrition varies greatly but is thought to be serious in some areas. As a result and despite the country's important agricultural potential, food imports have averaged some 400,000 tons in recent years, about half of which has been food aid. (ii) Restoration of basic social services: A second major goal for post conflict reconstruction is to restore and 5 repair social infrastructure damaged during the war. The combination of sabotage, plundering, abandonment and lack of maintenance has left many areas with a virtual void in basic health and primary education services, especially in many rural areas in the Plan Alto which have, until recently, not been under government control and therefore not accessible. Both the quantity and quality of education and health services have declined precipitously. (iii) Relieve the pressure on urban and peri-urban infrastructure: A further objective for post conflict transition strategy is to relieve the severe pressure on urban infrastructure, facilities and services caused by large numbers of displaced people squatting in urban and peri-urban slums. Successfully providing these people with adequate support and incentives to return to their former rural communities will both relieve demand pressure on urban infrastructure, which is currently stretched well beyond its carrying capacity, while at the same time promoting a revival of the rural economy. 3. Sector issues to be addressed by the project and strategic choices: The PCSRP LIL would address the following issues: 1. Need to reinforce planning and implementation capacity: In light of the many difficulties surrounding the demobilization process in Angola, until recently, the Government's attention has been focused mainly on defining support measures for ex-combatants, who are thought to be the most volatile segment of the war affected population. With this process now completed, there is a need for a more comprehensive framework which would address the needs of all displaced and vulnerable groups in the country and coordinate the interventions of all concerned ministries and external partners. MINARS has begun to formulate a strategy addressing the needs of all war affected regions and populations, aimed at providing a consistent framework for post conflict reintegration and rehabilitation investment planning and implementation. An important element in this strategy would be to design an operational model for reintegration support which would be relevant and replicable in all war affected regions of the country. Testing of the model proposed in the LIL would provide this learning experience. In coordination with other donors (UNDP and the International Organization for Migration), the project would provide technical assistance to MINARS to strengthen this Reintegration Strategy. 2. Need to develop an appropriate operational model for reintegration support. Communities in especially war devastated areas have suffered severe and widespread physical disruption during the war. Cornpounding this factor, the return of significant numbers of displaced people to their former communities will generate significant social and economic pressure on these communities. Recovery in these areas will require timely assistance across a wide spectrum of needs. Interventions should be integrated and mutually supportive in order to generate adequate impact. A project by project
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