PROJECT INFORMATION DOCUMENT (PID) Report No.: AB7242 Project Name Additional Financing for the Emergency Crises Response Project Region AFRICA Sector Other social services (70%); General water, sanitation and flood protection sector (30%) Project ID P133755 Borrower(s) Union of the Comoros Implementing Agency Fonds d'Appui au Développement Communautaire (FADC) BP 2494 Route de Ligue des Etats arabes Comoros Telephone No. : 269 773 28 82 Fax No.: 269-773-28-84 fadc@comorestelecom.km Environment Category [ ] A [x ] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared January 23, 2013 Estimated Date of November 5, 2012 Appraisal Authorization Estimated Date of Board March 29, 2013 Approval 1. Key development issues and rationale for Bank involvement Country context: The Union of the Comoros is a small post-conflict island country (population 680,000), consisting of three islands. Its economy is characterized by geographical isolation, limited resources, a small domestic market, a narrow export base and a high dependence on food imports and remittances, which makes it vulnerable to domestic and external shocks. About half the population lives below the poverty line, while poverty varies significantly across islands and is generally higher in rural areas and in Anjouan, particularly in the South. In 2009, the Union of the Comoros ranked 139 out of 182 countries on the UN Human Development Index in 2009. Original Project: The original Grant of US$5.31 million (SDR 3.5 million) for the Emergency Crises Response Project was approved on June 1, 2010, and became effective on September 25, 2010. The Project Development Objective was to increase access to short-term employment and to basic social and economic services in areas affected by the crises, both global and internally- generated. There has not been any change to the original objectives, design or scope. The Project includes the following three components: (i) cash-for-work program; (ii) provision and rehabilitation of basic infrastructures following a community driven development approach; and (iii) Project monitoring and evaluation, and audits. Rationale for the proposed Additional Financing: The Union of the Comoros is currently facing a very challenging situation created by the lingering effects of a succession of crises. Prices of staple goods mostly rice, vegetable and meat which cover about 60 percent of food consumption have increased by close to 10 percent in the past year. In early 2012, the Union of the Comoros has also been particularly affected by severe floods which have resulted in loss of income opportunities and important damages to a number of critical infrastructures including schools, small bridges and feeder roads. As a result, the livelihood vulnerability of the population has increased substantially while poverty remains widespread -- particularly in rural areas. Forty percent of children are estimated to be stunted due to malnutrition, which is particularly acute on the island of Anjouan. According to an assessment by United Nations International Children’s Fund (UNICEF) about one third of the children under 5 years of age suffered from chronic malnutrition in 2008.1 There is no evidence that the situation has improved in the last five years. To mitigate the impacts of the crises and the damages from the floods, the borrower requested an additional grant to scale up the activities financed under the Emergency Crises Response Project. More specifically, the incremental resources would finance the rehabilitation of community- based infrastructure and the cash-for-work program while directing incremental funds towards those most affected by the lingering effects of the successive crises, including the more recent floods. 2. Proposed objectives. The Project Development Objective would remain unchanged: to increase access to short-term employment and to basic and social services in areas affected by the crises, both global and internally-generated. 3. Preliminary description The Project would comprise the following three components: Component 1: Social Safety Net (Cash-for-Work) (US$1.23 million). This component finances a cash-for-work program to increase access to short-term employment in crises-affected areas. Component 2: Community-Driven Development (US$1.23 million). This component supports the capacity building of communities and finances community-based infrastructure sub-projects to increase access to social and economic services. Component 3: Project Management, Monitoring and Evaluation, and Audit (US$0.54 million). This component finances project management and coordination costs, including consultant services, technical advisory services such as technical studies and assessments, training and operating costs. 4. Safeguard policies V. Environmental Category and Safeguards 1. The environmental classification of the Project would remain Category B. 2. FADC has satisfactorily complied with all safeguard policies during the implementation of the Emergency Crises Response Project. New activities financed under the Additional Financing would be identical to those of the original Project and the proposed Additional 1 See : Rapport d’Evaluation de l’Etat Nutritionnel des Enfants de Moins de 5 and et de la Mortalité dans l’Union des Comores. UNICEF Comoros, December 2008. Financing would not trigger any new safeguard policies. More specifically, activities financed under the Additional Financing could potentially trigger the following safeguard policies: Environmental Assessment (OP/BP 4.01) and Involuntary Resettlement (OP/BP 4.12). In addition, cash-for-work sub-projects would not be eligible if they trigger Involuntary Resettlement (OP/BP 4.12). 3. During the preparation of the Emergency Crises Response Project, the Government established an ESMF and an RPF to ensure that any potential negative safeguard impacts would be detected and that mitigation measures would be incorporated at the sub-project design stage. These documents would continue to be used for the proposed Additional Financing. They have been re-disclosed to the Infoshop prior to negotiations. 4. FADC has the institutional capacity to manage the safeguard aspects brought about by the proposed Additional Financing. Table 1: Safeguard Policies Triggered by the Project Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Cash-for-work sub-projects would not be eligible if they trigger Involuntary Resettlement (OP/BP 4.12). Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X 5. Tentative financing Source: ($m.) Borrower 0 International Development Association (IDA) 3.00 Total 3.00 6. Contact point Contact: Philippe Auffret/ Title: Sr Social Protection Specialist Tel: (202) 473-7174 Email: pauffret@worldbank.org Contact: Randa El-Rashidi Title: Social Protection Specialist Tel: (202) 473-2274 Email: relrashidi@worldbank.org