Public Disclosure Authorized Document of The World Bank Report No: 64887-HT Public Disclosure Authorized RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF HAITI - URBAN COMMUNITY DRIVEN DEVELOPMENT PROJECT (PRODEPUR) ADDITIONAL FINANCING GRANT OCTOBER 6, 2010 TO THE REPUBLIC OF HAITI October 21, 2011 Public Disclosure Authorized Public Disclosure Authorized Regional Vice President: Country Director: Sector Manager / Director: Task Team Leader: Pamela Cox Alexandre Abrantes Guang Zhe Chen Ali Alwahti
Restructuring Restructuring Type: Level II Last modified on date : October 21, 2011 Status: Draft 1. Basic Information Project ID & Name Country Task Team Leader Sector Manager/Director Country Director Alexandre Abrantes Original Board Approval Date October 26, 2010 Current Closing Date March 31, 2014. Proposed Closing Date [if applicable] EA Category B Revised EA Category EA Completion Date June 11, 2010 Revised EA Completion Date P121833 - Urban Community Driven Development Project (Prodepur) Housing And Community Infrastructure Reconstruction (Additional Financing) Original project : P106699 Republic of Haiti Ali Alwahti Guang Zhe Chen 2. Revised Financing Plan (US$) Source Original Revised IDA 30.00 30.0 Total 30.00 30.00 3. Borrower Organization Department Location Republic of Haiti Ministère de l Economie et des Finances 5, Avenue Charles Sumner Port-au-Prince Republic of Haiti 4. Implementing Agency Organization Department Location Michael Lecorps, Director General Phone No.: 509-223-8625 Fax No.: 509-221-2149 www.bureaudegestion.gouv.ht Bureau de Monétisation des Programmes d Aide au Développement (BMPAD) Bd Henri Truman Local Ancien Casino International Port-au-Prince Republic of Haiti 2
5. Disbursement Estimates (US$m) Actual amount disbursed as of 10/11/2011 0.33 Fiscal Year Annual Cumulative FY12 13.00 13.00 FY13 10.00 23.00 FY14 7.00 30.00 Total 30.00 6. Policy Exceptions and Safeguard Policies Does the restructured project require any exceptions to Bank policies? Have these been approved by Bank management Is approval for any policy exception sought from the Board? Does the scale-up of restructured projects trigger any new safeguard policies? If yes, please select from the checkli st below. NO NO Safeguard Policy Last Rating Proposed Environmental Assessment (OD 4.01) Yes Yes Natural Habitats (OP 4.04) No No Forestry (OP 4.36) No No Pest Management (OP 4.09) No No Cultural Property (OPN 11.03) Yes Yes Indigenous Peoples (OD 4.20) No No Involuntary Resettlement (OP 4.12) Yes Yes Safety of Dams (OP 4.37) No No Projects in International Waters (OP 7.50) No No Projects in Disputed Areas (OP 7.60) No No 7a. Project Development Objectives/Outcomes Original/Current Project Development Objectives/Outcomes The objective of the Project included in the Original Project (as amended herein solely for purposes of the Financing) is to improve access to, and satisfaction with: (i) basic and social infrastructure and services, including housing repair, reconstruction and community infrastructure improvement needed as a result of the Emergency; and (ii) income-generating opportunities for residents of selected Disadvantaged Urban Areas. 7b. Revised Project Development Objectives/Outcomes [if applicable] n/a 3
HAITI HAITI - URBAN COMMUNITY DRIVEN DEVELOPMENT PROJECT / PRODEPUR P106699 CONTENTS Page A. SUMMARY... 4 B. PROJECT STATUS... 4 C. PROPOSED CHANGES... 4 4
HAITI - URBAN COMMUNITY DRIVEN DEVELOPMENT PROJECT PRODEPUR RESTRUCTURING PAPER SUMMARY 1. The proposed restructuring of the Additional Financing for the Urban Community Driven Development Project, Grant Number H621-0-HT (PRODEPUR- ADDITIONAL FINANCING), Project ID: P121833, is in response to a request received from the Government of the Republic of Haiti (GoH) to restructure the Project. The proposed restructuring was requested by the Ministry of Economy and Finance of the Borrower (MEF) to accommodate the GoH s interest in accelerating the neighborhood return and closing of temporary camps process, and their decision to strengthen support mechanisms for neighborhood return and systematically align the financial incentives applicable to all housing intervention projects in the Port-au-Prince metropolitan area. 2. The proposed restructuring will not extend the closing date of the project, nor will it require a reallocation of funds. The proposed restructuring will also not entail changes to the Project Development Objective (PDO). 3. Since the confirmation of President Michel Martelly in May, his transition team engaged a sustained dialogue with the donor community outlining his key priorities for the first 100 days of his mandate: the housing sector was one of the top priorities with a clear aim at moving Internally Displaced People (IDPs) still living in camps to their residence of origin. 4. To this end, President Martelly s transition team prepared a Six-Sixteen Program that would set and implement the operational principles to speed the return of displaced households in pilot areas. This Program was approved by the Interim Haiti Recovery Commission on August 16, 2011 and was awarded a US$30 million from the Haiti Reconstruction Fund (HRF) to move people out of 6 camps into 16 neighborhoods. The program is being implemented by four UN agencies. 5. During the preparation of the project, data on the occupation status of households in affected neighborhoods were not available and the magnitude of the numbers of renters vs owners was not well apprehended at this time. Grant packages and mechanisms for owners to repair or rebuild their home have been well described in the Project Appraisal Document and Grant Agreement, while the support for renters was mentioned in the PAD but not formalized in the Grant Agreement. Results from recent studies and enumerations show that, depending on neighborhood, renters represent at least 50% of the affected population and there is a need to address this segment of the population properly. Experiences 5
conducted recently showed that households also needed a small financial support to help cover the cost of relocation to their original or new home. 6. A Rental Grant and a Relocation Grant have been introduced in the above mentioned government Six-Sixteen program. Thus, in the interest of a harmonized approach to deal with this segment of the beneficiary population targeted under all housing projects being implemented in Haiti currently, the PRODEPUR-ADDITIONAL FINANCING component 4 needs to be modified to include financing incentive for renters and relocation grants for beneficiaries to return home. 7. Eligible beneficiaries of cash grants awarded under the project are identified through a Community Enumeration Process whose methodology has been prepared by the Interministerial Committee for Territorial Planning (CIAT) and is included in the Project Operational Manual (POM). This Community Enumerations is being conducted in several areas by organizations such as the International Organization of Migration (IOM) and supervised by the CIAT. Eligible beneficiaries of the rental grant are typically former renters of apartment, bedrooms or houses in Yellow tag Houses 1 or Red tag Houses 2. Rental grants that will allow them to negotiate either (i) with their former landlord, who will also be identified through the enumeration process, a one-year rental agreement whether in a yellow or red house; or (ii) with another landlord if the former location cannot accommodate them any more for safety reasons, de-densification or other land use reason. This grant will be allocated in two tranches subject to the signing of a rental contract. The relocation grant would be disbursed to help eligible households move to their house. 8. The proposed restructuring would entail including a relocation grant ( Relocation Grant ) and a rental grant ( Rental Grant ) under the definition of Cash Grants in the of in the Grant Agreement and in the Component 4 (b) of the Project Appraisal Document. PROJECT STATUS 9. The Additional Financing of the Project was approved by the Board of Directors on October 26, 2010 and the Grant Agreement was signed on November 23, 2010. The implementation of the project is progressing well. Despite forced delays as a result of a political crisis during the first round of Presidential and Legislative elections in November 2010, affecting the functionality of Government, the Project was made effective February 21, 2011. As a result of retro-active 1 Yellow tag House means any single or multi-unit residential building assessed by the Ministry of Public Works as habitable after completion of necessary repairs 2. Red tag House means any single or multi-unit residential building assessed by the Ministry of Public Works as damaged beyond repair and to be demolished. 6
financing, project activities were underway prior to effectiveness. Overall implementation progress is satisfactory and the project is on track to meet its development objective. The master urban plan for both Delmas and Delmas 32 have been presented to, and approved by, the Mayor of Delmas. The proposed operationalization of these master plans, including initial small works, was presented to the Mairie of Delmas in June 2011. In addition, IOM has completed a Community Enumeration Program in Delmas 32 in support of PRODEPUR-ADDITIONAL FINANCING activities, and has launched the same program in Carrefour Feuille to be completed in the coming months. 10. Two major contracts with the Maîtres d Ouvrage Délégués (MDODs), the Project s implementing agencies at the community level, of a total of USD 16,350,000 have been signed and pace of disbursement is taking off. PROPOSED CHANGES 11. The proposed changes would include a rental grant and a relocation grants under the definition of Cash Grants of Component 4 (b) Cash Grants for Housing Repair and Reconstruction of the Project Appraisal Document which. reads as follows: (b) Cash Grants for Housing Repair and Reconstruction (US$10.56 million): The Sub-Component will finance the provision of a total of about 5,000 cash grants to qualified beneficiaries in selected PRODEPUR-ADDITIONAL FINANCING project areas for owner/resident-driven (i) repair of houses assessed as structurally solid (yellow tag houses), or (ii) on-site reconstruction of houses either destroyed or damaged beyond repair (red tag houses). Cash grants for repair work will amount to US$1,350 and cash grants for reconstruction will amount to US$3,500 per household. 12. The Rental cash Grant will cover one year rent per renter and would be provided to the selected beneficiaries through the community enumeration process, under a contract between the beneficiary and the owner. The agreement will be monitored by the MDODs, the implementing agency at the community level. In addition, eligible households will receive a Relocation Grant to cover costs associated with the move back to the house. Modalities for managing monitoring and setting up the amount of these cash grants will be outlined in the project s operations manual and will be updated on a regular basis by the project steering committee. Although current estimates for the Rental Grant is estimated at $500 under the Six-Sixteen project, the amount is expected to increase in the future. The Relocation Grant amount has been established at US$150 per household relocated. 13. The change will therefore be reflected as follows: 7
(b) Cash Grants for Housing Repair and Reconstruction, Rent and Relocation (US$10.56 million): The Sub-Component will finance the provision of a total of about 5,000 cash grants to qualified beneficiaries in selected PRODEPUR-ADDITIONAL FINANCING project areas for (a) owner/residentdriven repair of houses assessed as structurally solid (yellow tag houses), or onsite reconstruction of houses either destroyed or damaged beyond repair (red tag houses). Cash grants for repair work will amount to US$1,350 and cash grants for reconstruction will amount to US$3,500 per household; (b) former house renters (from yellow and red houses) to cover a one-year rental cost for a unit and will amount to approximately US$ 500. A Relocation cash Grant will be awarded to eligible households who will be relocated to their home. The amount of the different cash grants will be reviewed from time to time, subject to the approval of the Association, taking into account the decision of the Project Steering Committee. 8