Input:
CURRENCY EQUIVALENTS

(Exchange Rate Effective December 31, 2015)

Currency Unit = Somali Shilling
Somali Shilling 588.2 = US$1

FISCAL YEAR
January 1      - December 31

ABBREVIATIONS AND ACRONYMS

BE Bank Execution
BRA Benadir Regional Administration
DA Designated Bank Account
EAFS External Agency for Fiduciary Support
E&S Environmental and Social
ESMF Environmental and Social Management Framework
FGS Federal Government of Somalia

BE Bank Execution
BRA Benadir Regional Administration
DA Designated Bank Account
EAFS External Agency for Fiduciary Support
E&S Environmental and Social
ESMF Environmental and Social Management Framework
FGS Federal Government of Somalia

FMS Financial Management Specialist
GDP Gross Domestic Product

FMS Financial Management Specialist
GDP Gross Domestic Product

GM Garowe Municipality
GoPL Government of Puntland
GoSL Government of Somaliland

GoPL Government of Puntland
GoSL Government of Somaliland

HM Hargeisa Municipality
HWA Hargeisa Water Agency
ICT
IDP Internally Displaced Persons
IFRs

ICT Information and Communications Technology
IDP Internally Displaced Persons
IFRs Interim Unaudited Financial Reports

IPSAS International Public Sector Accounting Standards
ISN Interim Strategy Note
LGs Local Governments
LDF Local Development Fund
JPLG Joint Partnership for Local Governance
MoF Ministry of Finance
MoPW Ministry of Public Works
MPF Multi Partner Fund
NDP National Development Plan
NGOs Non-Government Organizations


Input:
SUDP Somali Urban Development Project
SUIPP Somali Urban Investment Planning Project
UCS Use of Country Systems
WSP Water and Sanitation Project

Regional Vice President: Makhtar Diop
Country Director: Bella Bird
Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez
Practice Manager: Idrissa Dia
Task Team Leader: Dean Cira

iii


Input:
**SOMALI URBAN INVESMENT PLANNING PROJECT**

**TABLE OF CONTENTS**

**Page**

I. **STRATEGIC CONTEXT .................................................................................................1**

A. Country Context ............................................................................................................ 1

B. Situations of Urgent Need of Assistance or Capacity Constraints ............................... 2

C. Sectoral and Institutional Context ................................................................................. 2

D. Higher Level Objectives to which the Project Contributes .......................................... 3

II. **PROJECT DEVELOPMENT OBJECTIVES ................................................................4**

A. PDO............................................................................................................................... 4

B. Project Beneficiaries ...................................................................................................... 4

C. PDO Level Results Indicators ........................................................................................ 4

III. **PROJECT DESCRIPTION ..............................................................................................4**

A. Project Components ...................................................................................................... 4

B. Project Financing .......................................................................................................... 9

C. Series of Project Objective and Phases ....................................................................... 10

IV. **IMPLEMENTATION .....................................................................................................10**

A. Institutional and Implementation Arrangements ........................................................ 10

B. Results Monitoring and Evaluation ............................................................................ 11

C. Sustainability............................................................................................................... 11

V. **KEY RISKS ......................................................................................................................11**

A. Overall Risk Rating and Explanation of Key Risks.................................................... 11

B. Risk Ratings Summary Table ..................................................................................... 12

VI. **APPRAISAL SUMMARY ..............................................................................................12**

A. Economic and Financial (if applicable) Analysis ....................................................... 12

B. Technical ..................................................................................................................... 13

C. Financial Management ................................................................................................ 13

D. Procurement ................................................................................................................ 16

E. Social (including Safeguards) ..................................................................................... 16

F. Environment (including Safeguards) .......................................................................... 17

iv


Input:
G. World Bank Grievance Redress .................................................................................. 18

**Annex 2: Detailed Project Description .......................................................................................24**

**Annex 3: Implementation Arrangements ..................................................................................31**

**Annex 4: Systematic Operations Risk-Rating Tool (SORT)....................................................41**

**Annex 5: Implementation Support Plan ....................................................................................45**

v


Input:
|minister@mofa.gov.so
Responsible: H.E Ali Hussein Ismail, Minister
Somaliland Ministry of Planning and Development
+252634425833
alijirdeh@gmail.com|Col2|Col3|Col4|Col5|Col6|Col7|Col8|Col9|Col10|Col11|Col12|Col13|Col14|Col15|Col16|Col17|
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|**Safeguards Deferral (from Decision Review Decision Note)**|**Safeguards Deferral (from Decision Review Decision Note)**|**Safeguards Deferral (from Decision Review Decision Note)**|**Safeguards Deferral (from Decision Review Decision Note)**|**Safeguards Deferral (from Decision Review Decision Note)**|**Safeguards Deferral (from Decision Review Decision Note)**|**Safeguards Deferral (from Decision Review Decision Note)**|**Safeguards Deferral (from Decision Review Decision Note)**|**Safeguards Deferral (from Decision Review Decision Note)**|**Safeguards Deferral (from Decision Review Decision Note)**|**Safeguards Deferral (from Decision Review Decision Note)**|**Safeguards Deferral (from Decision Review Decision Note)**|**Safeguards Deferral (from Decision Review Decision Note)**|**Safeguards Deferral (from Decision Review Decision Note)**|**Safeguards Deferral (from Decision Review Decision Note)**|**Safeguards Deferral (from Decision Review Decision Note)**|**Safeguards Deferral (from Decision Review Decision Note)**|
|Will the review of Safeguards be deferred? [ ] Yes   [ X ]  No|Will the review of Safeguards be deferred? [ ] Yes   [ X ]  No|Will the review of Safeguards be deferred? [ ] Yes   [ X ]  No|Will the review of Safeguards be deferred? [ ] Yes   [ X ]  No|Will the review of Safeguards be deferred? [ ] Yes   [ X ]  No|Will the review of Safeguards be deferred? [ ] Yes   [ X ]  No|Will the review of Safeguards be deferred? [ ] Yes   [ X ]  No|Will the review of Safeguards be deferred? [ ] Yes   [ X ]  No|Will the review of Safeguards be deferred? [ ] Yes   [ X ]  No|Will the review of Safeguards be deferred? [ ] Yes   [ X ]  No|Will the review of Safeguards be deferred? [ ] Yes   [ X ]  No|Will the review of Safeguards be deferred? [ ] Yes   [ X ]  No|Will the review of Safeguards be deferred? [ ] Yes   [ X ]  No|Will the review of Safeguards be deferred? [ ] Yes   [ X ]  No|Will the review of Safeguards be deferred? [ ] Yes   [ X ]  No|Will the review of Safeguards be deferred? [ ] Yes   [ X ]  No|Will the review of Safeguards be deferred? [ ] Yes   [ X ]  No|
|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|**Project Financing Data(in USD Million)**|
|[  ]
Loan|[  ]
Loan|[  ]
IDA Grant|[  ]
IDA Grant|[  ]
IDA Grant|[  ]
IDA Grant|[  ]
Guarantee|[  ]
Guarantee|[  ]
Guarantee|[  ]
Guarantee|[  ]
Guarantee|[  ]
Guarantee|[  ]
Guarantee|[  ]
Guarantee|[  ]
Guarantee|[  ]
Guarantee|[  ]
Guarantee|
|[  ]
Credit|[  ]
Credit|[ X ]
Grant|[ X ]
Grant|[ X ]
Grant|[ X ]
Grant|[  ]
Other|[  ]
Other|[  ]
Other|[  ]
Other|[  ]
Other|[  ]
Other|[  ]
Other|[  ]
Other|[  ]
Other|[  ]
Other|[  ]
Other|
|Total Project Cost:|Total Project Cost:|Total Project Cost:|Total Project Cost:|6.00|6.00|6.00|6.00|6.00|6.00|Total Bank Financing:|Total Bank Financing:|Total Bank Financing:|Total Bank Financing:|0.00|0.00|0.00|
|Financing Gap:|Financing Gap:|Financing Gap:|Financing Gap:|0.00|0.00|0.00|0.00|0.00|0.00||||||||
|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|**Financing Source**
**Amount**|
|Borrower|Borrower|Borrower|Borrower|Borrower|Borrower|Borrower|Borrower|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|0.00|
|Somalia Multi-Partner Fund|Somalia Multi-Partner Fund|Somalia Multi-Partner Fund|Somalia Multi-Partner Fund|Somalia Multi-Partner Fund|Somalia Multi-Partner Fund|Somalia Multi-Partner Fund|Somalia Multi-Partner Fund|6.00|6.00|6.00|6.00|6.00|6.00|6.00|6.00|6.00|
|Total|Total|Total|Total|Total|Total|Total|Total|6.00|6.00|6.00|6.00|6.00|6.00|6.00|6.00|6.00|
|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|**Expected Disbursements (in USD Million)**|
|Fiscal
Year|2016|2016|2017|2017|||||||||||||
|Annual|2.00|2.00|4.00|4.00|||||||||||||
|Cumulati
ve|2.00|2.00|6.00|6.00|||||||||||||
|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|**Institutional Data**|
|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|**Practice Area (Lead)**|
|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|Social, Urban, Rural and Resilience Global Practice|
|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|**Contributing Practice Areas**|
||||||||||||||||||
|**Cross Cutting Topics**|**Cross Cutting Topics**|**Cross Cutting Topics**|**Cross Cutting Topics**|**Cross Cutting Topics**|**Cross Cutting Topics**|**Cross Cutting Topics**|**Cross Cutting Topics**|**Cross Cutting Topics**|**Cross Cutting Topics**|**Cross Cutting Topics**|**Cross Cutting Topics**|**Cross Cutting Topics**|**Cross Cutting Topics**|**Cross Cutting Topics**|**Cross Cutting Topics**|**Cross Cutting Topics**|
|[  ]
Climate Change|[  ]
Climate Change|[  ]
Climate Change|[  ]
Climate Change|[  ]
Climate Change|[  ]
Climate Change|[  ]
Climate Change|[  ]
Climate Change|[  ]
Climate Change|[  ]
Climate Change|[  ]
Climate Change|[  ]
Climate Change|[  ]
Climate Change|[  ]
Climate Change|[  ]
Climate Change|[  ]
Climate Change|[  ]
Climate Change|
|[ X ]
Fragile, Conflict & Violence|[ X ]
Fragile, Conflict & Violence|[ X ]
Fragile, Conflict & Violence|[ X ]
Fragile, Conflict & Violence|[ X ]
Fragile, Conflict & Violence|[ X ]
Fragile, Conflict & Violence|[ X ]
Fragile, Conflict & Violence|[ X ]
Fragile, Conflict & Violence|[ X ]
Fragile, Conflict & Violence|[ X ]
Fragile, Conflict & Violence|[ X ]
Fragile, Conflict & Violence|[ X ]
Fragile, Conflict & Violence|[ X ]
Fragile, Conflict & Violence|[ X ]
Fragile, Conflict & Violence|[ X ]
Fragile, Conflict & Violence|[ X ]
Fragile, Conflict & Violence|[ X ]
Fragile, Conflict & Violence|
|[  ]
Gender|[  ]
Gender|[  ]
Gender|[  ]
Gender|[  ]
Gender|[  ]
Gender|[  ]
Gender|[  ]
Gender|[  ]
Gender|[  ]
Gender|[  ]
Gender|[  ]
Gender|[  ]
Gender|[  ]
Gender|[  ]
Gender|[  ]
Gender|[  ]
Gender|
|[ X ]
Jobs|[ X ]
Jobs|[ X ]
Jobs|[ X ]
Jobs|[ X ]
Jobs|[ X ]
Jobs|[ X ]
Jobs|[ X ]
Jobs|[ X ]
Jobs|[ X ]
Jobs|[ X ]
Jobs|[ X ]
Jobs|[ X ]
Jobs|[ X ]
Jobs|[ X ]
Jobs|[ X ]
Jobs|[ X ]
Jobs|
|[  ]
Public Private Partnership|[  ]
Public Private Partnership|[  ]
Public Private Partnership|[  ]
Public Private Partnership|[  ]
Public Private Partnership|[  ]
Public Private Partnership|[  ]
Public Private Partnership|[  ]
Public Private Partnership|[  ]
Public Private Partnership|[  ]
Public Private Partnership|[  ]
Public Private Partnership|[  ]
Public Private Partnership|[  ]
Public Private Partnership|[  ]
Public Private Partnership|[  ]
Public Private Partnership|[  ]
Public Private Partnership|[  ]
Public Private Partnership|
|**Sectors / Climate Change**|**Sectors / Climate Change**|**Sectors / Climate Change**|**Sectors / Climate Change**|**Sectors / Climate Change**|**Sectors / Climate Change**|**Sectors / Climate Change**|**Sectors / Climate Change**|**Sectors / Climate Change**|**Sectors / Climate Change**|**Sectors / Climate Change**|**Sectors / Climate Change**|**Sectors / Climate Change**|**Sectors / Climate Change**|**Sectors / Climate Change**|**Sectors / Climate Change**|**Sectors / Climate Change**|
|Sector (Maximum 5 and total % must equal 100)|Sector (Maximum 5 and total % must equal 100)|Sector (Maximum 5 and total % must equal 100)|Sector (Maximum 5 and total % must equal 100)|Sector (Maximum 5 and total % must equal 100)|Sector (Maximum 5 and total % must equal 100)|Sector (Maximum 5 and total % must equal 100)|Sector (Maximum 5 and total % must equal 100)|Sector (Maximum 5 and total % must equal 100)|Sector (Maximum 5 and total % must equal 100)|Sector (Maximum 5 and total % must equal 100)|Sector (Maximum 5 and total % must equal 100)|Sector (Maximum 5 and total % must equal 100)|Sector (Maximum 5 and total % must equal 100)|Sector (Maximum 5 and total % must equal 100)|Sector (Maximum 5 and total % must equal 100)|Sector (Maximum 5 and total % must equal 100)|


Input:
|3. Sector Strategies and Policies|Col2|Col3|Col4|Low|Col6|Col7|Col8|
|---|---|---|---|---|---|---|---|
|4. Technical Design of Project or Program|4. Technical Design of Project or Program|4. Technical Design of Project or Program|4. Technical Design of Project or Program|Moderate|Moderate|Moderate|Moderate|
|5. Institutional Capacity for Implementation and Sustainability|5. Institutional Capacity for Implementation and Sustainability|5. Institutional Capacity for Implementation and Sustainability|5. Institutional Capacity for Implementation and Sustainability|High|High|High|High|
|6. Fiduciary|6. Fiduciary|6. Fiduciary|6. Fiduciary|Moderate|Moderate|Moderate|Moderate|
|7. Environment and Social|7. Environment and Social|7. Environment and Social|7. Environment and Social|Low|Low|Low|Low|
|8. Stakeholders|8. Stakeholders|8. Stakeholders|8. Stakeholders|High|High|High|High|
|9. Other|9. Other|9. Other|9. Other|High|High|High|High|
|**OVERALL**|**OVERALL**|**OVERALL**|**OVERALL**|High|High|High|High|
|**Compliance**|**Compliance**|**Compliance**|**Compliance**|**Compliance**|**Compliance**|**Compliance**|**Compliance**|
|**Policy**|**Policy**|**Policy**|**Policy**|**Policy**|**Policy**|**Policy**|**Policy**|
|Does the project depart from the CAS in content or in other significant
respects?|Does the project depart from the CAS in content or in other significant
respects?|Does the project depart from the CAS in content or in other significant
respects?|Does the project depart from the CAS in content or in other significant
respects?|Does the project depart from the CAS in content or in other significant
respects?|Yes [  ]
No [ X ]|Yes [  ]
No [ X ]|Yes [  ]
No [ X ]|
|Does the project require any waivers of Bank policies?
Yes [  ]
No [ X ]|Does the project require any waivers of Bank policies?
Yes [  ]
No [ X ]|Does the project require any waivers of Bank policies?
Yes [  ]
No [ X ]|Does the project require any waivers of Bank policies?
Yes [  ]
No [ X ]|Does the project require any waivers of Bank policies?
Yes [  ]
No [ X ]|Does the project require any waivers of Bank policies?
Yes [  ]
No [ X ]|Does the project require any waivers of Bank policies?
Yes [  ]
No [ X ]|Does the project require any waivers of Bank policies?
Yes [  ]
No [ X ]|
|Have these been approved by Bank management?|Have these been approved by Bank management?|Have these been approved by Bank management?|Have these been approved by Bank management?|Have these been approved by Bank management?|Yes [ X ]
No [  ]|Yes [ X ]
No [  ]|Yes [ X ]
No [  ]|
|Is approval for any policy waiver sought from the Board?|Is approval for any policy waiver sought from the Board?|Is approval for any policy waiver sought from the Board?|Is approval for any policy waiver sought from the Board?|Is approval for any policy waiver sought from the Board?|Yes [  ]
No [ X ]|Yes [  ]
No [ X ]|Yes [  ]
No [ X ]|
|Explanation:|Explanation:|Explanation:|Explanation:|Explanation:|Explanation:|Explanation:|Explanation:|
|||||||||
|Does the project meet the Regional criteria for readiness for implementation?|Does the project meet the Regional criteria for readiness for implementation?|Does the project meet the Regional criteria for readiness for implementation?|Does the project meet the Regional criteria for readiness for implementation?|Does the project meet the Regional criteria for readiness for implementation?|Yes [ X ]
No [  ]|Yes [ X ]
No [  ]|Yes [ X ]
No [  ]|
|**Safeguard Policies Triggered by the Project**
**Yes**
**No**|**Safeguard Policies Triggered by the Project**
**Yes**
**No**|**Safeguard Policies Triggered by the Project**
**Yes**
**No**|**Safeguard Policies Triggered by the Project**
**Yes**
**No**|**Safeguard Policies Triggered by the Project**
**Yes**
**No**|**Safeguard Policies Triggered by the Project**
**Yes**
**No**|**Safeguard Policies Triggered by the Project**
**Yes**
**No**|**Safeguard Policies Triggered by the Project**
**Yes**
**No**|
|Environmental Assessment OP/BP 4.01|Environmental Assessment OP/BP 4.01|Environmental Assessment OP/BP 4.01|**X**|**X**|**X**|**X**||
|Natural Habitats OP/BP 4.04|Natural Habitats OP/BP 4.04|Natural Habitats OP/BP 4.04|||||**X**|
|Forests OP/BP 4.36|Forests OP/BP 4.36|Forests OP/BP 4.36|||||**X**|
|Pest Management OP 4.09|Pest Management OP 4.09|Pest Management OP 4.09|||||**X**|
|Physical Cultural Resources OP/BP 4.11|Physical Cultural Resources OP/BP 4.11|Physical Cultural Resources OP/BP 4.11|||||**X**|
|Indigenous Peoples OP/BP 4.10|Indigenous Peoples OP/BP 4.10|Indigenous Peoples OP/BP 4.10|||||**X**|
|Involuntary Resettlement OP/BP 4.12|Involuntary Resettlement OP/BP 4.12|Involuntary Resettlement OP/BP 4.12|||||**X**|
|Safety of Dams OP/BP 4.37|Safety of Dams OP/BP 4.37|Safety of Dams OP/BP 4.37|||||**X**|
|Projects on International Waterways OP/BP 7.50|Projects on International Waterways OP/BP 7.50|Projects on International Waterways OP/BP 7.50|||||**X**|
|Projects in Disputed Areas OP/BP 7.60|Projects in Disputed Areas OP/BP 7.60|Projects in Disputed Areas OP/BP 7.60|||||**X**|
|**Legal Covenants**|**Legal Covenants**|**Legal Covenants**|**Legal Covenants**|**Legal Covenants**|**Legal Covenants**|**Legal Covenants**|**Legal Covenants**|
|**Name**

|**Recurrent**|**Due Date**|**Due Date**|**Due Date**|**Due Date**|**Frequency**|**Frequency**|


Input:
|Col1|Col2|Col3|Col4|Col5|Col6|Col7|Col8|Col9|
|---|---|---|---|---|---|---|---|---|
|**Description of Covenant**|**Description of Covenant**|**Description of Covenant**|**Description of Covenant**|**Description of Covenant**|**Description of Covenant**|**Description of Covenant**|**Description of Covenant**|**Description of Covenant**|
||||||||||
|**Conditions**|**Conditions**|**Conditions**|**Conditions**|**Conditions**|**Conditions**|**Conditions**|**Conditions**|**Conditions**|
|**Source of Fund**|**Name**|**Name**|**Name**|**Name**|**Name**|**Type**|**Type**|**Type**|
|SOMP|Subsidiary Agreements|Subsidiary Agreements|Subsidiary Agreements|Subsidiary Agreements|Subsidiary Agreements|Effectiveness|Effectiveness|Effectiveness|
|**Description of the Condition**
Each of the Subsidiary Agreements between the Recipient and the Benadir Regional Administration and
between the Recipient and the Puntland State of Somalia has been executed in accordance with the
provisions of Section I.C of Schedule 2 of the Grant Agreement, and the Implementation Agreement
between the Puntland State of Somalia and the Garowe Municipality has been executed in accordance with
the provisions of Section I.D of Schedule 2 of the Grant Agreement.|**Description of the Condition**
Each of the Subsidiary Agreements between the Recipient and the Benadir Regional Administration and
between the Recipient and the Puntland State of Somalia has been executed in accordance with the
provisions of Section I.C of Schedule 2 of the Grant Agreement, and the Implementation Agreement
between the Puntland State of Somalia and the Garowe Municipality has been executed in accordance with
the provisions of Section I.D of Schedule 2 of the Grant Agreement.|**Description of the Condition**
Each of the Subsidiary Agreements between the Recipient and the Benadir Regional Administration and
between the Recipient and the Puntland State of Somalia has been executed in accordance with the
provisions of Section I.C of Schedule 2 of the Grant Agreement, and the Implementation Agreement
between the Puntland State of Somalia and the Garowe Municipality has been executed in accordance with
the provisions of Section I.D of Schedule 2 of the Grant Agreement.|**Description of the Condition**
Each of the Subsidiary Agreements between the Recipient and the Benadir Regional Administration and
between the Recipient and the Puntland State of Somalia has been executed in accordance with the
provisions of Section I.C of Schedule 2 of the Grant Agreement, and the Implementation Agreement
between the Puntland State of Somalia and the Garowe Municipality has been executed in accordance with
the provisions of Section I.D of Schedule 2 of the Grant Agreement.|**Description of the Condition**
Each of the Subsidiary Agreements between the Recipient and the Benadir Regional Administration and
between the Recipient and the Puntland State of Somalia has been executed in accordance with the
provisions of Section I.C of Schedule 2 of the Grant Agreement, and the Implementation Agreement
between the Puntland State of Somalia and the Garowe Municipality has been executed in accordance with
the provisions of Section I.D of Schedule 2 of the Grant Agreement.|**Description of the Condition**
Each of the Subsidiary Agreements between the Recipient and the Benadir Regional Administration and
between the Recipient and the Puntland State of Somalia has been executed in accordance with the
provisions of Section I.C of Schedule 2 of the Grant Agreement, and the Implementation Agreement
between the Puntland State of Somalia and the Garowe Municipality has been executed in accordance with
the provisions of Section I.D of Schedule 2 of the Grant Agreement.|**Description of the Condition**
Each of the Subsidiary Agreements between the Recipient and the Benadir Regional Administration and
between the Recipient and the Puntland State of Somalia has been executed in accordance with the
provisions of Section I.C of Schedule 2 of the Grant Agreement, and the Implementation Agreement
between the Puntland State of Somalia and the Garowe Municipality has been executed in accordance with
the provisions of Section I.D of Schedule 2 of the Grant Agreement.|**Description of the Condition**
Each of the Subsidiary Agreements between the Recipient and the Benadir Regional Administration and
between the Recipient and the Puntland State of Somalia has been executed in accordance with the
provisions of Section I.C of Schedule 2 of the Grant Agreement, and the Implementation Agreement
between the Puntland State of Somalia and the Garowe Municipality has been executed in accordance with
the provisions of Section I.D of Schedule 2 of the Grant Agreement.|**Description of the Condition**
Each of the Subsidiary Agreements between the Recipient and the Benadir Regional Administration and
between the Recipient and the Puntland State of Somalia has been executed in accordance with the
provisions of Section I.C of Schedule 2 of the Grant Agreement, and the Implementation Agreement
between the Puntland State of Somalia and the Garowe Municipality has been executed in accordance with
the provisions of Section I.D of Schedule 2 of the Grant Agreement.|
|**Source Of Fund**|**Name**|**Name**|**Name**|**Name**|**Name**|**Type**|**Type**|**Type**|
|SOMP|Project Implementation Manual|Project Implementation Manual|Project Implementation Manual|Project Implementation Manual|Project Implementation Manual|Effectiveness|Effectiveness|Effectiveness|
|**Description of Condition**|**Description of Condition**|**Description of Condition**|**Description of Condition**|**Description of Condition**|**Description of Condition**|**Description of Condition**|**Description of Condition**|**Description of Condition**|
|The Recipient shall have adopted the Project Implementation Manual in accordance with the provisions
of Section I.F in Schedule 2 of the Grant Agreement.|The Recipient shall have adopted the Project Implementation Manual in accordance with the provisions
of Section I.F in Schedule 2 of the Grant Agreement.|The Recipient shall have adopted the Project Implementation Manual in accordance with the provisions
of Section I.F in Schedule 2 of the Grant Agreement.|The Recipient shall have adopted the Project Implementation Manual in accordance with the provisions
of Section I.F in Schedule 2 of the Grant Agreement.|The Recipient shall have adopted the Project Implementation Manual in accordance with the provisions
of Section I.F in Schedule 2 of the Grant Agreement.|The Recipient shall have adopted the Project Implementation Manual in accordance with the provisions
of Section I.F in Schedule 2 of the Grant Agreement.|The Recipient shall have adopted the Project Implementation Manual in accordance with the provisions
of Section I.F in Schedule 2 of the Grant Agreement.|The Recipient shall have adopted the Project Implementation Manual in accordance with the provisions
of Section I.F in Schedule 2 of the Grant Agreement.|The Recipient shall have adopted the Project Implementation Manual in accordance with the provisions
of Section I.F in Schedule 2 of the Grant Agreement.|
|**Source of Fund**|**Name**|**Name**|**Name**|**Name**|**Name**|**Type**|**Type**|**Type**|
|SOMP|Subsidiary Agreements|Subsidiary Agreements|Subsidiary Agreements|Subsidiary Agreements|Subsidiary Agreements|Effectiveness|Effectiveness|Effectiveness|
|**Description of the Condition**
The Subsidiary Agreement between the Recipient and the Hargeisa Municipality has been executed in
accordance with the provisions of Section I.B of Schedule 2 of the Grant Agreement.|**Description of the Condition**
The Subsidiary Agreement between the Recipient and the Hargeisa Municipality has been executed in
accordance with the provisions of Section I.B of Schedule 2 of the Grant Agreement.|**Description of the Condition**
The Subsidiary Agreement between the Recipient and the Hargeisa Municipality has been executed in
accordance with the provisions of Section I.B of Schedule 2 of the Grant Agreement.|**Description of the Condition**
The Subsidiary Agreement between the Recipient and the Hargeisa Municipality has been executed in
accordance with the provisions of Section I.B of Schedule 2 of the Grant Agreement.|**Description of the Condition**
The Subsidiary Agreement between the Recipient and the Hargeisa Municipality has been executed in
accordance with the provisions of Section I.B of Schedule 2 of the Grant Agreement.|**Description of the Condition**
The Subsidiary Agreement between the Recipient and the Hargeisa Municipality has been executed in
accordance with the provisions of Section I.B of Schedule 2 of the Grant Agreement.|**Description of the Condition**
The Subsidiary Agreement between the Recipient and the Hargeisa Municipality has been executed in
accordance with the provisions of Section I.B of Schedule 2 of the Grant Agreement.|**Description of the Condition**
The Subsidiary Agreement between the Recipient and the Hargeisa Municipality has been executed in
accordance with the provisions of Section I.B of Schedule 2 of the Grant Agreement.|**Description of the Condition**
The Subsidiary Agreement between the Recipient and the Hargeisa Municipality has been executed in
accordance with the provisions of Section I.B of Schedule 2 of the Grant Agreement.|
|**Source of Fund**|**Name**|**Name**|**Name**|**Name**|**Name**|**Type**|**Type**|**Type**|
|SOMP|Project Implementation Manual|Project Implementation Manual|Project Implementation Manual|Project Implementation Manual|Project Implementation Manual|Effectiveness|Effectiveness|Effectiveness|
|**Description of the Condition**
The Recipient has adopted the Project Implementation Manual in accordance with the provisions of
Section I.D of Schedule 2 of the Grant Agreement.|**Description of the Condition**
The Recipient has adopted the Project Implementation Manual in accordance with the provisions of
Section I.D of Schedule 2 of the Grant Agreement.|**Description of the Condition**
The Recipient has adopted the Project Implementation Manual in accordance with the provisions of
Section I.D of Schedule 2 of the Grant Agreement.|**Description of the Condition**
The Recipient has adopted the Project Implementation Manual in accordance with the provisions of
Section I.D of Schedule 2 of the Grant Agreement.|**Description of the Condition**
The Recipient has adopted the Project Implementation Manual in accordance with the provisions of
Section I.D of Schedule 2 of the Grant Agreement.|**Description of the Condition**
The Recipient has adopted the Project Implementation Manual in accordance with the provisions of
Section I.D of Schedule 2 of the Grant Agreement.|**Description of the Condition**
The Recipient has adopted the Project Implementation Manual in accordance with the provisions of
Section I.D of Schedule 2 of the Grant Agreement.|**Description of the Condition**
The Recipient has adopted the Project Implementation Manual in accordance with the provisions of
Section I.D of Schedule 2 of the Grant Agreement.|**Description of the Condition**
The Recipient has adopted the Project Implementation Manual in accordance with the provisions of
Section I.D of Schedule 2 of the Grant Agreement.|
|**Team Composition**|**Team Composition**|**Team Composition**|**Team Composition**|**Team Composition**|**Team Composition**|**Team Composition**|**Team Composition**|**Team Composition**|
|**Bank Staff**|**Bank Staff**|**Bank Staff**|**Bank Staff**|**Bank Staff**|**Bank Staff**|**Bank Staff**|**Bank Staff**|**Bank Staff**|
|**Name**|**Role**|**Role**|**Title**|**Title**|**Specialization**|**Specialization**|**Specialization**|**Unit**|
|Dean A. Cira|Team Leader
(ADM
Responsible)|Team Leader
(ADM
Responsible)|Lead Urban
Specialist|Lead Urban
Specialist||||GSURR|
|Anjani Kumar|Procurement
Specialist|Procurement
Specialist|Senior Procurement
Specialist|Senior Procurement
Specialist|Procurement|Procurement|Procurement|GGODR|
|Leonard Mutuku
Matheka|Financial
Management
Specialist|Financial
Management
Specialist|Consultant|Consultant|Financial
Management|Financial
Management|Financial
Management|GGODR|
|Abdoul Wahabi Seini|Safeguards|Safeguards|Senior Social|Senior Social|Social Safeguards|Social Safeguards|Social Safeguards|GSURR|


Input:
|Col1|Col2|Specialist|Col4|Development
Specialist|Col6|Col7|Col8|Col9|Col10|
|---|---|---|---|---|---|---|---|---|---|
|Adenike Sherifat
Oyeyiola|Adenike Sherifat
Oyeyiola|Team Member|Team Member|Sr Financial
Management
Specialist|Sr Financial
Management
Specialist|Sr Financial
Management
Specialist|Financial
Management|Financial
Management|GGODR|
|Christiaan Johannes
Nieuwoudt|Christiaan Johannes
Nieuwoudt|Team Member|Team Member|Finance Officer|Finance Officer|Finance Officer|Disbursement/finan
ce|Disbursement/finan
ce|WFALA|
|John F. A Etidau|John F. A Etidau|Team Member|Team Member|Consultant|Consultant|Consultant|Procurement|Procurement|GGODR|
|Joseph A. Gadek|Joseph A. Gadek|Team Member|Team Member|Consultant|Consultant|Consultant|Engineer|Engineer|GSU13|
|Matthias Mayr|Matthias Mayr|Team Member|Team Member|E T Consultant|E T Consultant|E T Consultant|Conflict/Risk|Conflict/Risk|AFCTZ|
|Rildo Santos|Rildo Santos|Team Member|Team Member|Language Program
Assistant|Language Program
Assistant|Language Program
Assistant|||GSURR|
|Roland White|Roland White|Team Member|Team Member|Lead Urban
Specialist|Lead Urban
Specialist|Lead Urban
Specialist|Urban
Development|Urban
Development|GSURR|
|Edith Mwenda|Edith Mwenda|Counsel|Counsel|Counsel|Counsel|Counsel|Legal|Legal|LEGAM|
|Wolfhart Pohl|Wolfhart Pohl|Safeguards
Specialist|Safeguards
Specialist|Adviser|Adviser|Adviser|Safeguards|Safeguards|GCFDR|
|Zishan Faiza Karim|Zishan Faiza Karim|Team Member|Team Member|Social
Development
Specialist|Social
Development
Specialist|Social
Development
Specialist|Community
Development|Community
Development|GSURR|
|**Extended Team**|**Extended Team**|**Extended Team**|**Extended Team**|**Extended Team**|**Extended Team**|**Extended Team**|**Extended Team**|**Extended Team**|**Extended Team**|
|**Name**|**Name**|**Title**|**Title**|**Title**|**Office Phone**|**Office Phone**|**Office Phone**|**Location**|**Location**|
|||||||||||
|**Locations**|**Locations**|**Locations**|**Locations**|**Locations**|**Locations**|**Locations**|**Locations**|**Locations**|**Locations**|
|**Country**|**First**
**Administrative**
**Division**|**First**
**Administrative**
**Division**|**Location**|**Location**|**Location**|**Planned**|**Actual**|**Comments**|**Comments**|
|Federal
Government
of Somalia
and
Government
of
Somaliland|||Mogadishu,
Hargeisa, Garowe|Mogadishu,
Hargeisa, Garowe|Mogadishu,
Hargeisa, Garowe|||||
|**Consultants (Will be disclosed in the Monthly Operational Summary)**|**Consultants (Will be disclosed in the Monthly Operational Summary)**|**Consultants (Will be disclosed in the Monthly Operational Summary)**|**Consultants (Will be disclosed in the Monthly Operational Summary)**|**Consultants (Will be disclosed in the Monthly Operational Summary)**|**Consultants (Will be disclosed in the Monthly Operational Summary)**|**Consultants (Will be disclosed in the Monthly Operational Summary)**|**Consultants (Will be disclosed in the Monthly Operational Summary)**|**Consultants (Will be disclosed in the Monthly Operational Summary)**|**Consultants (Will be disclosed in the Monthly Operational Summary)**|
|Consultants Required?
Consultants will be required
|Consultants Required?
Consultants will be required
|Consultants Required?
Consultants will be required
|Consultants Required?
Consultants will be required
|Consultants Required?
Consultants will be required
|Consultants Required?
Consultants will be required
|Consultants Required?
Consultants will be required
|Consultants Required?
Consultants will be required
|Consultants Required?
Consultants will be required
|Consultants Required?
Consultants will be required
|


Input:
I. **STRATEGIC CONTEXT**

**A.** **Country Context**

1. The Somali Urban Investment Planning Project (SUIPP) will support feasibility,
assessment and preliminary design studies for urban investment activities, which could be
funded from a Multi Partner Fund (MPF), across the geographic territory of southern Somalia,
Puntland and Somaliland. The total population of this area is estimated to be over 12 million,
growing at a rate of roughly 3 percent annually. [1] The current urbanization level is estimated at
around 42 percent, with an urban population growth rate of around 4 percent per annum. [2]
Somali human development indicators are among the lowest in the world. Poverty incidence is
73 percent – 61 percent in urban areas and 80 percent in rural areas, with extreme poverty
estimated at 43 percent.

2. This area has witnessed severe conflict and violence over the past two decades.  Since
the collapse of the Siad Barre government in 1991, southern Somalia has experienced cycles of
conflict that fragmented the country, destroyed legitimate institutions and created widespread
vulnerability. In contrast to the war-torn south, northern areas are relatively stable and have put
in place functioning institutions, although considerable development challenges remain.

---
[1] Interim Strategy Note FY14-16, World Bank, December 2013, UNFPA Population Estimates 2014
[2] A Rapid Assessment of Three Somali Urban Areas, World Bank, November 2013, UNFPA Population Estimates 2014


Input:
3. The August 2012 peaceful transfer of power from a transitional to a full federal
government in Mogadishu generated domestic political momentum and triggered international
recognition. For the first time since 1991, there is a federal (rather than transitional) government
and a widely supported provisional constitution. The September 2013 Brussels Conference
galvanized further domestic and international support for the government, and endorsed a
Compact whose Peace-building and State-building Goals provide an important roadmap for the
coming three year period. While positive momentum has been generated, sustaining domestic
confidence through the translation of international support into improved security, governance,
and economic benefits on the ground is an increasingly pressing challenge.


Input:
4. Somalia’s macro-economic framework reflects the country’s underlying fragility **.**
Reliable macro-economic data for Somalia is not available – however regional fiscal and
economic data does exist and broader estimates can be aggregated. Public expenditure is
estimated to account for 7.7 percent of GDP [3] compared with private sector consumption of 73
percent of GDP. Agriculture and services are the key contributors to GDP. Based on regional
fiscal data, Somaliland controls the largest budgetary resource envelope, generating US$127
million in revenue during 2012, compared to US$35 million at the federal level and US$38
million in Puntland.

5. In contrast to the war-torn south, authorities in the northern regions have put in place
functioning institutions that have succeeded in sustaining stability although considerable
development challenges remain. Following their declaration of independence and semiautonomy respectively, Somaliland and Puntland have developed hybrid forms of governance
combining modern institutions with religious authorities, civil society, the private sector and

---
[3] In the UNDP Human Development Report, Somalia’s GDP is estimated to be US$2.6 billion and per capita GDP is estimated to


Input:
(HWA). Again with some variation, these institutions are weak and require strengthening.
Outside of these cities, local infrastructure and services are delivered by District Councils of
different grades, or sizes, and widely varying capacities. In general, these entities are weak and
have very limited financial resources with which to carry out their mandates, one of the most
significant one being the Local Development Fund grant flow which provides an average of
US$200,000/annum to 14 of the largest (Grade A) District governments in these two areas (and,
from 2014, one area within southern Somalia).


Input:
10. Both the Somali Compact Building Goal 4 on Economic Foundations and the Somaliland
Special Arrangement prioritize the enhancement of productivity through rehabilitation of critical
infrastructure including roads and water. The Puntland Five Year Development Plan (2014-19)
Pillar 1 on Governance prioritizes the strengthening of local authorities and delivering
decentralized services while Pillar 4 on Economic Foundations prioritizes investment in roads
infrastructure. The Somaliland National Development Plan (NDP) (2012-16) pillar on
Infrastructure prioritizes support to the Hargeisa Water Agency to increase water production,
pumping and transmission lines, and expansion of the distribution network. The NDP’s pillar on
Good Governance recognizes the challenges to decentralization caused by structural constraints
and identifies projects that promote decentralization, transparency and accountability as a
priority.

**D.** **Higher Level Objectives to which the Project Contributes**


Input:
II. **PROJECT DEVELOPMENT OBJECTIVES**

**A.** **PDO**

13. The PDO is: To provide (i) an assessment of the feasibility of, and preliminary plans for,
selected urban investment and institutional strengthening activities in southern Somalia, Puntland
and Somaliland, and (ii) enhanced project preparation and implementation capacity of
participating agencies.

**B.** **Project Beneficiaries**

14. The immediate project beneficiaries will be the city governments of Mogadishu, Hargeisa
and Garowe. The ultimate project beneficiaries will be the residents of these cities.

**C.** **PDO Level Results Indicators**

15. The PDO level results indicators are:

- Institutional assessments of government agencies responsible for urban development and
service delivery in Mogadishu, Hargeisa, Garowe;

- Feasibility and preliminary design studies for specific urban investments (primary roads
in Mogadishu and Garowe; secondary roads in Mogadishu; solid and liquid waste in
Hargeisa);

- Assessment of the Local Development Fund and the potential for institutionalizing an
intergovernmental fiscal transfer system;

- Technical assistance units established in Mogadishu, Garowe, Hargeisa.

.
III. **PROJECT DESCRIPTION**

**A.** **Project Components**


Input:
16. The SUIPP comprises a “project to prepare a project”. The main project, called the
Somali Urban Development Project (SUDP), has an estimated budget envelope of US$86.11
million (excluding currently unspecified contingency amounts), intended for support by the
MPF. Pursuant to relevant Bank Operating Procedures, which specifically allow for such
situations, and given that the project has an environmental safeguard categorization of B, the
activities to be supported under the SUDP will include both detailed project design and
implementation. An overview of the activities to be undertaken under the SUDP is given in
Annex 2. [7] In brief, however, they constitute the rehabilitation and upgrading of primary and
secondary/community roads, a potential combination of the upgrading of intra-city roads and/or
bridge-building in Garowe, the enhancement of solid and liquid waste management and water
supply in Hargeisa, the extension and institutionalization of the Local Development Fund, and
institutional strengthening activities focused on the three municipalities and the Hargeisa Water
Agency. These activities have been identified through a process of technical work and dialogue
the Bank Task Team has undertaken during a number of visits to the three cities and are

---
[7] A Project Concept Review of the SUDP was held simultaneously with the Project Concept Review of the SUIPP


Input:
described in the Project Information Document for the SUDP and in the Aides Memoire
produced after each visit.

17. Preliminary preparation, which includes feasibility studies and preliminary design for the
main infrastructure activities under the SUDP, as well as a number of potential urban
infrastructure investments on the Somali territories, and a range of institutional assessments, will
be undertaken under the SUIPP – i.e. the project which forms the subject of this Project
Appraisal Document - also to be supported by the MPF. Some of the output of the technical
work undertaken under the SUIPP will provide the basis for the preparation of the SUDP, while
the scope of TA should also be applicable to urban development projects in a variety of different
funding contexts. It should be noted that final design work itself – e.g. detailed engineering
design, social and environmental impact assessments, exploratory drilling and preparation of
bidding documents – will not be undertaken as part of the SUIPP. They will be undertaken as
part of the SUDP or other projects under different financing arrangements, and funding to cover
these costs will be included in the project documentation and proposals relating to that operation.


Input:
18. Overall, the SUIPP will support two basic types of activity:

a. easibility and preliminary design studies for the physical investments that will be
supported by the SUDP and other urban development projects, and institutional
assessments of the agencies that will execute these investments to provide an
informational and analytic base for the preparation of institutional strengthening
activities that will be supported by the SUDP. In order to facilitate the quick
execution of these activities in the fragile and conflict affected environment of the
Somali territories, they will be executed by the Bank pursuant to OP 10 (para 12);

b. provision of technical assistance to enhance the capacity of the Somali executing
agencies to prepare and implement urban development projects, such as the SUDP,
effectively and efficiently and to mitigate fiduciary and safeguards risk. These
activities will be client executed.

19. These activities are described on a component-by-component basis below. An itemized
budget for the full project is given in section B below.

**Component 1: Mogadishu (US$1.73 million)**


Input:
20. Feasibility and preliminary design studies for the primary roads will be undertaken to
assess whether the selection of the three roads by the Benadir Regional Administration (BRA) is
the most efficient use of roads funds in relation to the roads already being upgraded with Turkish
assistance, survey these roads, take soil core samples along the roadway to determine the existing
sub-base and base materials of the roads, determine the standards for roads construction, locate
the options for road material quarries, locate options for the asphalt and concrete batching plants,
assess the labor pool available in Mogadishu vis-à-vis roads construction, and provide cost
estimates. For the secondary/community roads, the activities will focus on a dialogue with
communities to determine the priority works to be undertaken in each of the 17 Districts in
Mogadishu, to determine optimum implementation modalities, and provide cost estimates.

5


Input:
21. Environmental and social (E&S) due diligence work will contribute to the subcomponent via two main types of activities: (i) a baseline survey of environmental and social
information, data and issues that would help to identify E&S constraints, but also areas of
potential enhancement of project outcomes, and provide E&S information, criteria and
constraining factors for the subsequent design process; (ii) the development of an environmental
and social management framework, which would constitute a generic tool for managing social
and environmental risks related to urban investments, regardless of funding source, in the Somali
territories for use by entities such as local governments and water utilities.

22. At the institutional level, an assessment will be undertaken of the BRA and the Ministry
of Public Works (MoPW) of the FGS in order to provide an informational and analytic
foundation for the detailed preparation and execution of institutional strengthening activities that
will be undertaken under the SUDP. The assessment will focus on basic conditions of
performance, strategic planning capacity, technical and operational capacity, fiduciary systems,
transparency and accountability mechanisms and environmental and social management.

baseline survey of environmental and social information


Input:
23. In order to establish sufficient capacity to prepare and then implement the SUDP,
technical assistance for the BRA will need to be recruited under SUIPP comprising a full-time
project coordinator, full-time procurement specialist, full-time financial management specialist, a
part-time social and environmental specialist, and a part-time monitoring and evaluation
specialist. Operating and minor equipment costs related to the recruitment and employment of
these positions will also be incurred. In addition, some training and capacity building for these
individuals and other staff associated with preparation and execution of the SUIPP and SUDP
will be required.

**Component 2: Garowe (US$0.98 million)**

24. Feasibility and preliminary design studies for the identified roads and potential bridges
will be undertaken to estimate costs and identify the trade-offs to inform the selection of
potential roads and bridge construction activities to be undertaken under SUDP within the
available budget envelope, survey the roads, determine the standards of roads/bridge
construction, identify options for sourcing of materials and equipment, and assess the labor pool.


Input:
25. Environmental and social due diligence work will contribute to the sub-component via
two main types of activities: (i) a baseline survey of environmental and social information, data
and issues that would help to identify E&S constraints, but also areas of potential enhancement
of project outcomes, and provide E&S information, criteria and constraining factors for the
subsequent design process; (ii) the development of an environmental and social management
framework, which would constitute a generic tool for managing social and environmental risks
related to urban investments, regardless of funding source, in Puntland for use by entities such as
local governments and water utilities.

26. At the institutional level, an assessment will be undertaken of the Garowe Municipality
(GM) in order to provide an informational and analytic foundation for the detailed preparation
and execution of institutional strengthening activities that will be undertaken under the SUDP.
The assessment will focus on basic conditions of performance, strategic planning capacity,

6

baseline survey of environmental and social information


Input:
28. Feasibility and preliminary design studies for the solid and liquid waste investments will
be undertaken to determine the costs and siting of bulk solid and liquid waste disposal/treatment
sites and improvements in transfer points/stations, determine necessary construction standards
and the basic technologies that are most appropriate and cost-effective, identify options for
sourcing of materials and equipment, and assess the labor pool, and determine requirements
(financial, technical and institutional) for sustaining and expanding the system of solid waste
collection that has been introduced under donor-funded technical assistance efforts in recent
years. This work has already been completed for the water supply sub-component (under the
UN-Habitat supported project) and so is not required under SUIPP.


Input:
29. Environmental and social due diligence work will contribute to the sub-component via
two main types of activities: (i) a baseline survey of environmental and social information, data
and issues that would help to identify E&S constraints, but also areas of potential enhancement
of project outcomes, and provide E&S information, criteria and constraining factors for the
processes for design and environmental/social assessments planned for SUDP or other
downstream planning activities; (ii) the development of an environmental and social
management framework, which would constitute a generic tool for managing social and
environmental risks related to urban investments, and planning follow-up investigations,
assessments and analyses (for e.g. water supply and waste management activities) regardless of
funding source, in Somaliland for use by entities such as local governments and water utilities.

baseline survey of environmental and social information


Input:
30. At the institutional level, assessments will be undertaken of the Hargeisa Municipality
(HM) and the Hargeisa Water Agency (HWA) in order to provide an informational and analytic
foundation for the detailed preparation and execution of institutional strengthening activities that
will be undertaken under the SUDP. The assessments will focus on basic conditions of
performance, strategic planning capacity, technical and operational capacity, fiduciary systems,
transparency and accountability mechanisms and environmental and social management. In the
case of the HWA, the assessment will build on the review being carried out by the Water and
Sanitation Program (WSP) as part of their Corporate Governance Advisory support to the
agency. The SUIPP institutional assessment will identify potential residual activities from WSP’s
work; and recommend areas for future support in SUDP to enable HWA to take on these residual
activities.

7


Input:
33. _Cross-cutting studies (US$0.40 million)._ There will be two of these. One will focus on
the issue of conflict. The SUDP will be implemented in three urban areas, namely, Mogadishu,
Hargeisa and Garowe. These contexts – and particularly those most affected by conflict - require
that enhanced attention be paid to understanding (i) potentially harmful conflict and fragility
factors which could affect the project, (ii) the potential conflict-increasing impacts of each of the
main project activities be assessed, and (iii) the mitigating strategies be identified. To this end,
conflict assessment/mitigation work is necessary at two levels. First, an assessment will be
undertaken to identify differentiated sources of conflict and fragility and their potential impacts
on the specific activities which are likely to constitute the SUDP, to sensitize the design of the
operation to such factors, and to develop a screening tool which can be utilized in the detailed
preparation of the project components to identify potentially conflict-aggravating impacts of
project activities and develop strategies to mitigate these impacts. This will include an initial,
“do no harm” screening of the proposed SUDP investment activities which will feed into the
feasibility studies under the SUIPP. Second, the conflict screening tool will need to be applied in
greater detail during the detailed preparation of SUDP to gain a better understanding of the
conflict factors surrounding the project activities and to identify opportunities for the activities to
help, where possible, mitigate conflict.


Input:
34. Second, evidence indicates that infrastructure development projects can have social,
human and economic impacts and outcomes for targeted communities. Infrastructure
development furthermore can have different impacts and outcomes on men and women,
influencing access to services and economic opportunities, resource allocations, and participation
in community decision-making. Given that the SUDP will be one of the first major infrastructure
investment projects that will take place across the Somali territories in many years, it is
important to begin to develop an understanding of these impacts, particularly to inform the
character and design of infrastructure investment interventions that will take place in the future.

8


Input:
35. To this end, an evaluation of the socio-economic impact of select urban infrastructure
components will be conducted, including a disaggregation of some of the results by gender, to
improve the understanding and knowledge of the impact of project activities of the kind
anticipated under SUDP. This evaluation will be conducted in two phases. Overarching survey
design, including evaluation tools and protocols, will be developed during the SUIPP to assess
and evaluate the social and economic impacts of the SUDP, including the differentiated impact
of sele ~~c~~ t components on men and women, both during and at the end of the project (i.e. the
impact of project implementation and project outputs). Thereafter, impact evaluation activities,
including survey administration, data collection and analysis of results, will be undertaken during
the implementation of SUDP. The evaluation activities will focus tentatively on road
construction activities in Garowe, assuming the feasibility of security and other conditions.

36. _Financial Audit (US$0.4 million)._ An external financial audit of the project will be
undertaken across all the four implementing agencies by an external audit firm which will be
procured and funded by the project. Further detail on the project financial audit is provided in
Section VI C.


Input:
37. _Implementation enhancements to mitigate security and operational risks (US$0.86_
_million)._ As elaborated in the Implementation Arrangements section, enhanced implementation
modalities will be provided by a UN Agency for a number of the project components in order to
mitigate the security and operational risks associated with working in the current Somalia
environment. These have associated costs.

**B.** **Project Financing**

38. The project will be financed by a RETF sourced from the MPF. This funding, which will
be primarily executed by the World Bank on behalf of the client, is needed as the client has no
other source of funding for this work – which is necessary in order to present the larger operation
to the MPF for funding consideration.

**Project Cost and Financing**


Input:
|Project Components|Project
Costs|Grant
Financing|%
Financing|Execution|
|---|---|---|---|---|
|**Component 1: Mogadishu**|**1.73**|**1.73**|**100**||
|
Primary Roads FS and PD

Secondary roads FSBRA and

MoPW Institutional Assessment

Project Prep/exec TA|0.43|0.43||Bank|
|
Primary Roads FS and PD

Secondary roads FSBRA and

MoPW Institutional Assessment

Project Prep/exec TA|0.29|0.29||Bank|
|
Primary Roads FS and PD

Secondary roads FSBRA and

MoPW Institutional Assessment

Project Prep/exec TA|0.21|0.21||Bank|
|
Primary Roads FS and PD

Secondary roads FSBRA and

MoPW Institutional Assessment

Project Prep/exec TA|0.80|0.80||BRA|
|**Component 2: Garowe**|**0.98**|**0.98**|**100**||
|
Intra-city roads FS and PD

GM institutional assessment|0.23|0.23||Bank|
|
Intra-city roads FS and PD

GM institutional assessment|0.10|0.10||Bank|
|
Project Prep/exec TA|0.65|0.65||GM|
|**Component 3: Hargeisa**|**1.03**|**1.03**|**100**||
|
Waste management FS and PD|0.21|0.21||Bank|

9


Input:
|HM, HWA institutional assessment
Project Prep/exec TA|0.12|0.12|Col4|Bank|
|---|---|---|---|---|
|
HM, HWA institutional assessment

Project Prep/exec TA|0.70|0.70||HM|
|**Component 4: Crosscutting Activities**|**1.83**|**1.83**|**100**||
|
LDF Assessment

Conflict assessment

Impact assessment

Audit

Operational enhancements|0.17|0.17||Bank|
|
LDF Assessment

Conflict assessment

Impact assessment

Audit

Operational enhancements|0.20|0.20||Bank|
|
LDF Assessment

Conflict assessment

Impact assessment

Audit

Operational enhancements|0.20|0.20||Bank|
|
LDF Assessment

Conflict assessment

Impact assessment

Audit

Operational enhancements|0.40|0.40||Bank|
|
LDF Assessment

Conflict assessment

Impact assessment

Audit

Operational enhancements|0.86|0.86||Bank|
|**Total Baseline Costs**|**5.57**|**5.57**|**100**||
|
Contingencies

|0.43|0.43|||
|
Contingencies

|||||
|**Total Project Costs and Financing Required**
|**6.00**|**6.00**|**100**||

**C.** **Series of Project Objective and Phases**

39. Not applicable

IV. **IMPLEMENTATION**

**A.** **Institutional and Implementation Arrangements**


Input:
40. Project activities related to the feasibility, preliminary design and assessment studies will
be executed by the Bank on behalf of the client; and project activities which relate to the
recruitment of technical assistance to enhance project preparation and execution activities will be
undertaken by client executing agencies as detailed in the Project Cost table above. In
undertaking the activities it will execute, the Bank team will work and consult closely with its
counterparts, particularly the city governments of Mogadishu, Hargeisa and Garowe, the MoPW
of the FGS, the Hargeisa Water Authority, and the Planning Ministries of Puntland and
Somaliland. The detailed modalities and procedures for these working relationships will be
established during the early stages of the implementation of the SUIPP.


Input:
**B.** **Results Monitoring and Evaluation**

42. The Bank team will be responsible for monitoring the progress of the activities it will
execute; client agencies will be responsible for monitoring the progress of the activities they will
execute. Reporting procedures between client agencies and the Bank on client-executed
activities will be agreed during the early stages of implementation of the SUIPP. Given that the
security environment may make monitoring difficult, the Bank will explore the possibility of
using third parties to monitor aspects of progress, to the extent that this may be necessary and
possible. Given that the project supports only feasibility and preliminary design studies, no
evaluation will be undertaken.

**C.** **Sustainability**

43. Not applicable

V. **KEY RISKS**

**A.** **Overall Risk Rating and Explanation of Key Risks**

44. The overall risk rating for this project is **High.**


Input:
SUIPP.  Overall rates of return to these investments (e.g. roads, water) are expected to be high
but cannot be calculated at this point. The economic benefits of improved public health from the
water supply improvements and solid and liquid waste removal from the urban environment will
be examined during the detailed design activities.

**B.** **Technical**


Input:
52. Preliminary assessments and consultations undertaken by the Bank Task Team during
two missions to Mogadishu, Garowe, Hargeisa and Nairobi indicate that the identified
investment priorities for which the feasibility studies and preliminary design work under SUIPP
will be undertaken are sensible and technically feasible. This view must, however, be qualified
by the fact that in some cases – particularly Mogadishu – it has not been possible to visit the sites
of the initial investments, and secondary information is scarce. In addition, conditions –
particularly, but not only, those related to security – may make the implementation of project
activities difficult or even impossible. It will certainly add to their costs. It thus needs to be
recognized that the feasibility of at least some of the proposed project activities is difficult to
determine at the outset, and that the work conducted under the SUIPP will further inform this
assessment. The cost estimates for the activities to be undertaken in Mogadishu in particular are
subject to considerable variations once the feasibility and preliminary design engineering has
commenced. This might necessitate the reduction in the scope of works should the true costs
escalate.

**C.** **Financial Management**


Input:
53. _Overview_ . The SUIPP will involve both activities executed by the Bank on behalf of the
Recipient (BE) activities, and Recipient Executed (RE) activities. The RE activities comprise
limited and simple activities related to the employment of specialist technical staff by the key
implementing agencies i.e. the Mogadishu BRA, HM, and GM. An initial FM assessment
conducted during missions to these areas indicate that they are capable of handling the FM
responsibilities related to these activities, but at high levels of risk and that financial management
capacity challenges that are likely to affect the project exist. These include (i) weak legal Public
Financial Management (PFM) Frameworks; (ii) lack of prior experience in the implementation of
Bank supported projects; (iii) inadequate financial management competencies and internal
controls mechanisms; (iv) lack of or weak intergovernmental fiscal relations arrangement
frameworks between the FGS and the regional governments, as well as internally between the
State governments, local authorities (BRA, GM, HM) and the quasi-government entities (HWA);
and (v) very rudimentary banking arrangements.


Input:
58. Designated Account 1: The FGS External Aid Fiduciary Support (EAFS) department will
open a US Dollar Designated Bank Account (DA) in Central Bank of Somalia. The BRA will
open and operate a separate project bank account for transfers from the DA for project
expenditures based on a quarterly cash projection of expenditure. Payments from the DA will
only be for eligible expenditure which will have to be justified and properly documented. The
EAFS will prepare and submit withdrawal applications for the DA.

59. Designated Account 2: The Somaliland Ministry of Finance will open and operate a DA
for the HM in a financial institution acceptable to the World Bank. HM will open a segregated
project bank account for transfers from the DA for project related expenditure based on a
quarterly cash projection of expenditure.

60. The HM will prepare and submit detailed reports and analysis of expenditure to the
Ministry of Finance and the World Bank prior to reimbursement of its project account. The
Ministry of Finance will prepare Withdrawal Applications. Payments from the project account
will only be for eligible expenditure which has to be justified and properly documented.


Input:
61. Designated Account 3: The Puntland Ministry of Finance will open and operate a DA for
the GM in a financial institution acceptable to the World Bank. The GM will open and operate a
separate project bank account for transfers from the DA for project expenditures based on a
quarterly cash projection of expenditure. Payments from the DA will only be for eligible
expenditure which will have to be justified and properly documented.The Ministry of Finance
will prepare and submit withdrawal applications for the DA.

62. IDA funds will be transferred into the DAs against an approved Withdrawal Application.
The first IDA fund release will be an advance payment based on an agreed ceiling and on the
submission of a Withdrawal Application. Replenishment and Reimbursement of Withdrawal
Applications will be accompanied by Statement of Expenditures (SOEs) and direct payment will

14


Input:
66. The implementing entities would also prepare financial statements (FS) covering the
entire project period. The FS will be prepared in accordance with International Public Sector
Accounting Standards (IPSAS) - Cash Basis. The FS shall include adequate notes and
disclosures consistent with the cash basis of financial reporting under the IPSAS.

67. Each implementing entity will ensure that all important business and financial processes
are adhered to; adequate internal controls and procedures are in place; Interim Un-audited
Financial Reports (IFRs) are prepared and submitted to the World Bank on a timely basis; the
annual financial statements are prepared on a timely basis and in accordance with Cash Based
(IPSAS and the external audit is carried out with audit findings and recommendations monitored
to ensure they are implemented expeditiously.

68. _Internal control systems_ **:** The project internal controls procedures and processes will be
based on the Financial Management manuals for the EAFS [8], HWA [9] and HM [10] for the respective
regions and implementing entities. The Financial Management manuals are found to be sufficient
for the SUIPP and will be updated for the main project activities by the engaged FM Specialists.

---
[9] Developed by E & Y with support from Bank WASP
[10] Developed by UNDP administered JPLG Project


Input:
69. _Auditing:_ Given the regional spread and the capacity challenges in the Offices of the
Auditors General in the regions, an external audit firm will be engaged and funded by the project
to carry out the audit of the project activities. Each of the project implementing agencies (BRA,
GM, HWA and HM) will prepare and submit project financial statements.The project will carry
out one external audit covering the entire project period for the RE activities. The audited
project financial statements together with any additional information required will be submitted
to the World Bank not later than six months after the end of the project. The audit would be in
conformity with the World Bank’s audit requirements and in accordance with internationally
recognized auditing standards. The auditor will express an opinion on the Financial Statements in
compliance with International Standards on Auditing (ISA); and also prepare a Management

8
Developed by E&Y with support from the Bank PFM Capacity Strengthening project


Input:
Letter giving observations and comments, and providing recommendations for improvements in
accounting records, systems, controls and compliance with financial covenants in the Grant
Agreements.

**D.** **Procurement**

70. Under SUIPP, the major procurements will be undertaken in respect of Bank Executed
activities. In addition, some project funding is to be used for Recipient Executed activities. These
procurements will be simple i.e. to procure qualified individuals (viz. Project Coordinator,
Procurement Specialist, Financial Management Specialist, Safeguard Specialist and M&E
Specialist) at all the three locations Mogadishu, Garowe and Hargeisa to assist with preparation
(and, later, implementation) of SUDP. This activity will be conducted by the BRA at Mogadishu,
HM at Hargeisa and GM at Garowe. An initial procurement assessment of these agencies
suggests that though these agencies have some procurement experience they will require some
support to undertake the necessary procurements according to Bank procedures satisfactorily. In
Mogadishu the necessary procurement support would be provided to BRA by EAFS of the
Ministry of Finance. However, at Hargeisa and Garowe necessary support/guidance would be
provided by the World Bank procurement staff. The project will hire the procurement specialists
first who will then handle the procurement processes for the remaining four positions.


Input:
73. Environmental and social safeguard management frameworks (ESMFs) will be produced
(see next section for details), complying with international good practice norms and approaches,
that also would cover the collection of socio-economic baseline data and the determination of
likely typologies of social and livelihood impacts, or the need for land acquisition or
resettlement. These activities will be accomplished during SUIPP’s implementation period,
informing the planned technical and engineering studies.
74. Moreover, should it be determined that the subsequent operation (SUDP) will involve
works or activities with land acquisition leading to involuntary resettlement and/or restrictions of
access to resources or livelihoods, ToRs for a Resettlement Policy Framework (RPF) and/or
Resettlement Action Plan (RAP) would be prepared, consulted upon and disclosed.

16


Input:
76. The final identification of specific projects and detailed design work – e.g. detailed
engineering design, social and environmental impact assessments, exploratory drilling and
preparation of bid estimates – will not be carried out as part of the project (SUIPP). This will be
undertaken in a later phase, most likely as part of a MPF funded operation which will be
prepared on the basis of the studies prepared under the SUIPP. Detailed preparation of this
follow-up operation, which has been classified as environmental category B, will commence
once the work supported by the SUIPP is completed. This will include the preparation,
consultation on, and disclosure of the required E&S due diligence instruments, for which two
main types of activities will be carried out:

(a) a baseline survey of environmental and social information, data and issues that
will help to identify E&S constraints, but also areas of potential enhancement of
project outcomes, and provide E&S information, criteria and constraining factors
for the processes for design and environmental/social assessments planned for
SUDP or other downstream planning activities;

baseline survey of environmental and social information


Input:
**Annex 1: Results Framework and Monitoring**

**Country: Somalia**

**Project Name: Somali Urban Investment Planning (P150374)**

|Project Development Objectives|Col2|Col3|Col4|Col5|Col6|Col7|Col8|Col9|Col10|Col11|Col12|
|---|---|---|---|---|---|---|---|---|---|---|---|
|PDO Statement|PDO Statement|PDO Statement|PDO Statement|PDO Statement|PDO Statement|PDO Statement|PDO Statement|PDO Statement|PDO Statement|PDO Statement|PDO Statement|
|To provide (i) an assessment of the feasibility of, and preliminary plans for, selected urban investment and institutional strengthening activities in
southern Somalia, Puntland and Somaliland, and (ii) enhanced project preparation and implementation capacity of participating agencies.|To provide (i) an assessment of the feasibility of, and preliminary plans for, selected urban investment and institutional strengthening activities in
southern Somalia, Puntland and Somaliland, and (ii) enhanced project preparation and implementation capacity of participating agencies.|To provide (i) an assessment of the feasibility of, and preliminary plans for, selected urban investment and institutional strengthening activities in
southern Somalia, Puntland and Somaliland, and (ii) enhanced project preparation and implementation capacity of participating agencies.|To provide (i) an assessment of the feasibility of, and preliminary plans for, selected urban investment and institutional strengthening activities in
southern Somalia, Puntland and Somaliland, and (ii) enhanced project preparation and implementation capacity of participating agencies.|To provide (i) an assessment of the feasibility of, and preliminary plans for, selected urban investment and institutional strengthening activities in
southern Somalia, Puntland and Somaliland, and (ii) enhanced project preparation and implementation capacity of participating agencies.|To provide (i) an assessment of the feasibility of, and preliminary plans for, selected urban investment and institutional strengthening activities in
southern Somalia, Puntland and Somaliland, and (ii) enhanced project preparation and implementation capacity of participating agencies.|To provide (i) an assessment of the feasibility of, and preliminary plans for, selected urban investment and institutional strengthening activities in
southern Somalia, Puntland and Somaliland, and (ii) enhanced project preparation and implementation capacity of participating agencies.|To provide (i) an assessment of the feasibility of, and preliminary plans for, selected urban investment and institutional strengthening activities in
southern Somalia, Puntland and Somaliland, and (ii) enhanced project preparation and implementation capacity of participating agencies.|To provide (i) an assessment of the feasibility of, and preliminary plans for, selected urban investment and institutional strengthening activities in
southern Somalia, Puntland and Somaliland, and (ii) enhanced project preparation and implementation capacity of participating agencies.|To provide (i) an assessment of the feasibility of, and preliminary plans for, selected urban investment and institutional strengthening activities in
southern Somalia, Puntland and Somaliland, and (ii) enhanced project preparation and implementation capacity of participating agencies.|To provide (i) an assessment of the feasibility of, and preliminary plans for, selected urban investment and institutional strengthening activities in
southern Somalia, Puntland and Somaliland, and (ii) enhanced project preparation and implementation capacity of participating agencies.|To provide (i) an assessment of the feasibility of, and preliminary plans for, selected urban investment and institutional strengthening activities in
southern Somalia, Puntland and Somaliland, and (ii) enhanced project preparation and implementation capacity of participating agencies.|
|**These results are at**
Project Level|**These results are at**
Project Level|**These results are at**
Project Level|**These results are at**
Project Level|**These results are at**
Project Level|**These results are at**
Project Level|**These results are at**
Project Level|**These results are at**
Project Level|**These results are at**
Project Level|**These results are at**
Project Level|**These results are at**
Project Level|**These results are at**
Project Level|
|**Project Development Objective Indicators**|**Project Development Objective Indicators**|**Project Development Objective Indicators**|**Project Development Objective Indicators**|**Project Development Objective Indicators**|**Project Development Objective Indicators**|**Project Development Objective Indicators**|**Project Development Objective Indicators**|**Project Development Objective Indicators**|**Project Development Objective Indicators**|**Project Development Objective Indicators**|**Project Development Objective Indicators**|
|||Cumulative Target Values|Cumulative Target Values|Cumulative Target Values|Cumulative Target Values|Cumulative Target Values|Cumulative Target Values|Cumulative Target Values|Cumulative Target Values|Cumulative Target Values|Cumulative Target Values|
|Indicator Name|Baseline|YR1|YR2||||||||End
Target|
|Institutional
assessments of
government
agencies
responsible for
urban
development
and service
delivery in
Mogadishu,
Hargeisa and
Garowe
(Number)|0.00||3.00||||||||3.00|
|Feasibility and
preliminary|0.00||3.00||||||||3.00|


Input:
|Indicator Description|Col2|Col3|Col4|Col5|
|---|---|---|---|---|
|**Project Development Objective Indicators**|**Project Development Objective Indicators**|**Project Development Objective Indicators**|**Project Development Objective Indicators**|**Project Development Objective Indicators**|
|Indicator Name|Description (indicator definition etc.)|Frequency|Data Source / Methodology|Responsibility for Data
Collection|
|Institutional assessments of
government agencies
responsible for urban
development and service
delivery in Mogadishu,
Hargeisa and Garowe|Institutional assessments of the
participating agencies in the project that
will provide an informational and analytic
foundation for detailed preparation and
execution of institutional strengthening
activities in the future SUDP.|Over the
course of the
project|Output of project|Bank team|
|Feasibility and preliminary
design studies for specific
urban investments: primary
roads in Mogadishu and
Garowe; secondary roads in
Mogadishu; solid and liquid
waste in Hargeisa|Feasibility and preliminary design studies
for specific urban investments to
determine estimated costs, determine
standards for construction, locate options
for construction material and assess the
labor pool.|Over the
course of the
project|Output of project|Bank team|
|Assessment of Local
Development Fund and the
potential for
institutionalizing an
intergovernmental fiscal
transfer system|Assessment of the ongoing Local
Development Fund to determine the
potential for scaling up and
institutionalizing an intergovernmental
fiscal transfer system.|Over the
course of the
project|Output of project|Bank team|
|Technical assistance units
established in Mogadishu,
Garowe, Hargeisa|Technical assistance units established in
Mogadishu, Garowe and Hargeisa staffed
with relevant staff for the project.|Over the
course of the
project|Project activity|Client agencies|
|**Intermediate Results Indicators**|**Intermediate Results Indicators**|**Intermediate Results Indicators**|**Intermediate Results Indicators**|**Intermediate Results Indicators**|
|Indicator Name|Description (indicator definition etc.)|Frequency|Data Source / Methodology|Responsibility for Data
Collection|
|Contracting for Feasibility
Studies and Institutional|The successful contracting of firms for the
feasibility studies and institutional|Once|Project activity|Bank team|


Input:
**Annex 2: Detailed Project Description**

**Somali Urban Development Project**

1. The project described in the main body of the text, the Somali Urban Investment
Planning Project (SUIPP), will support the preparation of a future MPF-funded operation
targeted at urban infrastructure investment and institutional strengthening in southern Somalia,
Puntland and Somaliland, as well as technical assistance to government agencies to assist them
prepare and implement these activities. This Annex describes the likely components of the future
Somali Urban Development Project (SUDP).

2. The SUDP will support investment in urban infrastructure and the development of
formal, public-sector institutional systems and capacities in the cities of Mogadishu, Hargeisa,
and Garowe, and an expansion and institutionalization of the Local Development Fund.
Together, the operation’s activities will improve the economic productivity of the three cities,
enhance living conditions and inclusive access to urban economies, strengthen systems of urban
management and governance, and support ongoing state-building and consolidation.


Input:
to be high. The roads, once reconstructed, would complete one road network loop which has
already been partially undertaken by the Turkish aid program, as well as the rehabilitation of
other key roads. The roads requested by BRA and currently earmarked for financing
consideration are: the Heart (Wadnaha), the Thirty (Soddonka), and Industrial Road
(Warshadaha).

6. The technical specifications for the road rehabilitation would include replacing the subbase and base materials of the roads – if determined by road materials tests – with an
appropriately designed asphalt cement road surface. All road infrastructures would be designed
to have robust associated road-side drainage networks.

7. An initial cost estimate of the 17 km of primary road network including detailed
preparation and traffic management and optimization (junctions, signaling etc.) is approximately
US$ 21.5 million. However, it is possible that costs may be significantly higher than this and
until the Feasibility Studies are commissioned, the costs of the roads will be difficult to estimate
accurately to within 25%-30%. Depending on the outcome of the Feasibility Studies, a reduction
in the total length of roads to be rehabilitated relative to the 17 km initially estimated may be
needed.

Subcomponent 2: Secondary/tertiary roads


Input:
10. Strengthening the institutions and systems of urban management and local government,
and strengthening the organizational capacities of the BRA is a critical priority. In this context,
the project should make resources available, and be designed to incentivize activities which
support these objectives. Broadly, and building on the platform already established by other
donor programs (e.g. the Sustainable Employment Creation and Improved Livelihoods – SESILactivities which support the BRA Planning Unit; the USAID financial management support),
such activities are likely to focus on (i) spatial and project planning; (ii) procurement and
contracting, (iii) financial management, (iv) asset management, (v) project execution and
supervision; (vi) environmental and social management.

25


Input:
11. A likely budget of US$2 million would probably be necessary for these activities at a
scale sufficient for them to have the desired impact.

_**Component 2:  Hargeisa**_

- This component has three main subcomponents: Solid and Liquid Waste Management
(SLWM)

- Water Supply

- Drainage

- Institutional Strengthening and Capacity Building

12. Adequate waste management and water supply directly translates into cross cutting
benefits in public health, job creation, poverty reduction and environmental management.

Subcomponent 1: Waste Management

13. The World Bank has been supporting preliminary solid waste management (SWM)
activities in Hargeisa directed at developing an enabling environment for Public Private
Partnerships (PPPs) for investment, services expansion and quality improvements in private
provision of solid waste management. There is a rudimentary system in place based on a PPP
between Hargeisa Municipality (HM) and private operators on concession basis. The
performance of two contractors during the recent eight months has increased municipal revenues
by approximately 120% in one case and 30% in another, with a proportionate rise in the
customer base. To date the number of households served by all the contractors has reached
30,000, approximately 35% of the city population.


Input:
15. An initial cost estimate of the engineering of two landfills, the transfer stations and
equipment, and the liquid waste site is in the region of US$10 million. More accurate estimates
would build off a comprehensive feasibility study initially leading to implementation of physical
works, closely linked to capacity building activities to reach the minimum standard of impact
required [11] .

Subcomponent 2: Water Supply

16. Hargeisa depends for its water supply on groundwater well fields some 35km to the
North of the city built originally in the 1970s, and distributing through a reticulated network in
Hargeisa that is inadequate to meet current and future needs. The water supply is provided and
managed by the Hargeisa Water Agency (HWA) and currently the North of the city receives the
vast majority of the supply. The current distribution remains grossly inequitable and much of the
Southern part of the city does not receive piped water from HWA. For unserved citizens directly
vended water costs are on average five times the amount for a compound/household connection.

---
[11] Liquid waste is a significant issue in Hargeisa but given funding constraints is not addressed here.


Input:
17. On a daily basis it is estimated that up to 11,000 m3 of potable water are provided to the
city, with 8,000 m3 supplied by HWA through the city supply pumped from Ged Deeble well
field to the North, and with an additional 2-3,000 m3 brought in by private operator tankers.


Input:
18. Supported by UN-Habitat HWA is in the process of developing the supply to supplement
production from the existing 8,000 m3 day to 20,000 m3 day by 2016 with 24,000 m3day max
for the system according to the hydraulic limits of the design. Of this 15,000 m3/day is foreseen
from Ged Deeble and Hora Hadlay while a prospective 6,000 m3/day from Las Dhuure requires
verification through hydrogeological studies, test drilling and connection to the supply pipeline.
In addition HWA currently draws from Somaliland Development Fund (SDF) funding to extend
the distribution into the South and East of the city. While distribution can draw on up to 24,000
m3/day the requirement to deliver 50 l/c/d from 2016 onwards suggests a shortfall of 16,000
m3/day at that time, and underpins the need for long term water resources investigations to
secure adequate supply. This program has a number of critical priorities which are currently
unfunded, particularly related to the development of the Las Dhuure aquifer. The activity
proposed here would be targeted at these priorities, specifically (i) construction of pump and
generator buildings at Ged-Deeble, (ii) Las Dhuure groundwater investigations and test drilling,
(iii) civil works for connection of the Las Dhuure aquifer, and (iv) pumps and generators at GedDeeble.


Input:
19. An initial cost estimate of the engineering and infrastructure is in the region of US$ 6
million.

Subcomponent 3: Drainage

20. A feasibility study and preliminary design for drainage works will be commissioned
during the implementation of the SUDP to provide a more rational approach to addressing the
deficiencies in the drainage network and provide a cost framework for corrective measures.


Input:
Subcomponent 4: Institutional strengthening and capacity-building

21. Strengthening the governance and organizational systems and capacities for HWA, and
the capacities and systems of urban management for HM are important priorities. In this context,
the operation should make resources available, and be designed to incentivize activities which
support these objectives. Broadly, and building on the platform already established by other
donor programs (e.g. the Habitat and Water and Sanitation Program (WSP) activities for HWA
and Joint Program for Local Government (JPLG) and UN-Habitat activities for HM), such
activities are likely to focus on, for HWA, (i) governance (ii) technical strengthening; for HM, (i)
spatial and project planning; and for both (i) procurement and contracting, (ii) financial
management, (iii) asset management, (iv) project execution and supervision; and (v)
environmental and social management.

22. A likely budget of US$1.6m would probably be necessary for these activities at a scale
sufficient for them to have the desired impact.

_**Component 3: Garowe**_

23. This component would include two subcomponents: upgrading of key intra-city roads
and institutional strengthening.

Subcomponent 1: Intra-city roads


Input:
24. Since 2010, using UN JPLG financing Garowe Municipality (GM) has undertaken a
program of upgrading targeted intra-city roads to provide a freer flow of urban traffic, facilitating
easier and quicker transport between various parts of the municipality. This improvement in
urban mobility is aimed at facilitating increased commercial activity, improving revenue
generation and boosting incomes within the urban setting. The upgrading program from 2010 to
2013 mainly consisted of providing an engineered earth base with some of the roads having a
gravel surface applied. USAID is also financing some roads upgrading in Garowe.


Input:
25. This program has benefited from UN-Habitat technical assistance. A survey of road
conditions has been conducted by the Municipality with UN-Habitat assistance, the results of
which have been documented and recorded on a Geographic Information System (GIS) platform
for improved roads network planning and assets management capabilities of the GM. Currently with JPLG assistance - three roads with a combined length of 7.6 km are in the process of being
upgraded with the application of a bitumen surface. The bitumen surfaces are of a double-seal
dressing technical specification. Based on the roads conditions survey and additional planning
activities by the GM, an additional 27.03 km of roads in two categories – gravel and earthengineered – have been identified for priority bitumen surfacing. The cost estimate of this roads
contracting program is in the range of US$11 million for the completion of 27 km of roads
upgrading, including the cost of traffic management and optimization. The GM has also
identified two bridges that need to be built to enhance mobility within the city.  Given the likely
costs of the bridges, it would not be possible to construct these and develop the 27 km of roads
within likely available resources. The combination of road and/or bridge construction


Input:
investments that will be supported under the SUDP will be decided on the basis of the
information generated by the feasibility studies to be undertaken under the SUIPP.

Subcomponent 2: Institutional strengthening and capacity-building

26. Strengthening the governance and organizational systems and capacities for GM,
particularly for urban planning and management, is an important priority. In this context, the
project should make resources available, and be designed to incentivize, activities which support
these objectives. Broadly, and building on the platform already established by other donor
programs (e.g. the JPLG and Habitat), such activities are likely to focus on (i) governance, (ii)
technical strengthening, (iii) spatial and project planning, (iv) procurement and contracting, (v)
financial management, (vi) asset management, (vii) project execution and supervision, and (viii)
environmental and social management.

27. A likely budget of US$1 million would probably be necessary for these activities at a
scale sufficient for them to have the desired impact.

_**Component 4:  Local Development Fund**_


Input:
29. One important recent development has been the progression of decentralization policy in
Somaliland and Puntland and, to a much more limited extent, in southern Somalia. Both
Somaliland and Puntland have developed Decentralization Policy Documents which articulate a
clear, and similar, vision of a substantially decentralized intergovernmental system in which
adequately resourced and empowered local governments are responsible for local governance
and service delivery in significant sectors, including municipal infrastructure and services. [13] In
the case of Somaliland, the policy document has been endorsed by the Inter-ministerial
Committee which has overseen its formulation, and is awaiting Cabinet approval. In Puntland,
endorsement has been interrupted as a result of the change in government following the recent

12 It is not active in southern Somalia primarily because of insecurity. Initial engagement in Adado District was
mentioned by UNDP colleagues in 2014.

---
[13] Somaliland Decentralization Policy 2013-2020, Final Draft November 2013; and Puntland Decentralization Policy


Input:
Presidential election. Progress in southern Somalia has been much slower, but work has begun
on the development of a decentralization policy framework. Of particular note in the Somaliland
and Puntland policy documents is a clear commitment to fiscal decentralization including,
among other things, the development of a system of unconditional and conditional
intergovernmental fiscal transfers to finance recurrent and development expenditures.

30. In this context, provision of support to the LDF presents an important potential
opportunity. The architecture of the LDF has many of the core features of the sort of systematic,
equitable, conditional grant to be used to support development expenditures envisaged in the
Somaliland and Puntland policy documents. Over time, and with the right type of support, it
could be expanded (from the bottom up, as the system grows) and institutionalized (from the top
down, as policy consolidates and is implemented) as a central element of the evolving subnational fiscal framework throughout Somaliland, Puntland and, eventually (should the policy
environment permit it), southern Somalia.


Input:
**Annex 3: Implementation Arrangements**

**Somali Urban Investment Planning Project**

**Project Institutional and Implementation Arrangements**

_Project administration mechanisms_

1. Project activities related to the feasibility, preliminary design and assessment studies will
be executed by the Bank on behalf of the client; and project activities which relate to the
recruitment of technical assistance to enhance project preparation and execution activities will be
undertaken by client executing agencies. In undertaking the activities it will execute, the Bank
team will work and consult closely with its counterparts, particularly the city governments of
Mogadishu, Hargeisa and Garowe, the MoPW of the FGS, the Hargeisa Water Authority, and the
Planning Ministries of Puntland and Somaliland. The detailed modalities and procedures for
these working relationships will be established during the early stages of the implementation of
the SUIPP.


Input:
3. The SUIPP will involve both activities executed by the Bank on behalf of the Recipient
(BE) activities, and Recipient Executed (RE) activities. The RE activities comprise limited and
simple activities related to the employment of specialist technical staff by the key implementing
agencies i.e. the Mogadishu BRA, HM, and GM. An initial FM assessment conducted during
missions to these areas indicate that they are capable of handling the FM responsibilities related
to these activities, but at high levels of risk and that financial management capacity challenges
that are likely to affect the project exist. These include (i) weak legal Public Financial
Management (PFM) Frameworks; (ii) lack of prior experience in the implementation of Bank
supported projects; (iii) inadequate financial management competencies and internal controls
mechanisms; (iv) lack of or weak intergovernmental fiscal relations arrangement frameworks
between the FGS and the regional governments, as well as internally between the State

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