The World Bank DAR ES SALAAM METROPOLITAN DEVELOPMENT PROJECT PHASE II (P180298) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. Please delete this note when finalizing the document. Project Information Document (PID) Concept Stage | Date Prepared/Updated: 16-Mar-2023 | Report No: PIDC35495 Mar 06, 2023 Page 1 of 13 The World Bank DAR ES SALAAM METROPOLITAN DEVELOPMENT PROJECT PHASE II (P180298) BASIC INFORMATION A. Basic Project Data OPS TABLE Country Project ID Parent Project ID (if any) Project Name Tanzania P180298 DAR ES SALAAM METROPOLITAN DEVELOPMENT PROJECT PHASE II (P180298) Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) EASTERN AND SOUTHERN Sep 15, 2023 Oct 31, 2023 Urban, Resilience and AFRICA Land Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Ministry of Finance and Presidents Office- Regional Planning Administration and Local Government Proposed Development Objective(s) To improve urban services and institutional capacity and to strengthen climate resilient development in the Dar es Salaam Region PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 379.42 Total Financing 379.42 of which IBRD/IDA 350.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 350.00 IDA Credit 350.00 Non-World Bank Group Financing Other Sources 29.42 Mar 06, 2023 Page 2 of 13 The World Bank DAR ES SALAAM METROPOLITAN DEVELOPMENT PROJECT PHASE II (P180298) NETHERLANDS: Min. of Foreign Affairs / Min. of Dev. Coop. 29.42 Environmental and Social Risk Classification Concept Review Decision High Track II-The review did authorize the preparation to continue Note to Task Teams: End of system generated content, document is editable from here. Please delete this note when finalizing the document. Other Decision (as needed) B. Introduction and Context Country Context Tanzania’s1 economy has steadily grown over the past decade and is in a period of post-pandemic recovery. The country’s gross national income per capita reached $1,100 in 2019, crossing the lower-middle-income threshold of $1,036.2 The country has experienced strong economic performance with the gross domestic product (GDP) growing an average of 4.0 percent annually between 2012 and 2021, which is higher than average for Sub-Saharan African countries (3.5 percent) and lower-middle-income countries (2.8 percent). The Coronavirus Disease (COVID-19) pandemic inflicted a shock on the Tanzanian economy after a decade-long period of stable growth, with sharp deceleration in 2020 and per capita growth contracting for the first time since 1994 largely due to disruptions to export-orientated sectors such as tourism, manufacturing and related services. Economic activity is rebounding from the effects of COVID-19, though most activities have yet to return to their pre-pandemic levels. The service sector is gradually recovering, largely due to increased travel and tourism. Travel receipts roughly doubled between 2021 and 2022, and tourist arrivals have nearly reached pre-pandemic levels.3 Despite this steady growth, poverty reduction has been modest largely due to rapid population growth. Tanzania’s current total population is estimated at 61.7 million, inclusive of 1.9 million in Zanzibar, and is growing at about 3.2 percent annually.4 This places Tanzania among the countries with the fastest population growth rates globally. Tanzania’s poverty headcount ratio is high compared with peer countries, Sub- Saharan Africa, lower-middle-income countries, and upper- middle-income countries: using the international extreme poverty rate of US$1.90 per day, poverty in Tanzania has remained stagnant at 49 percent between 2011/12 and 2018.5 Although the national poverty rate declined from 34.4 percent in 2007 to 26.4 percent in 2019, given the fast rate of population growth, the absolute number of poor people 1 The United Republic of Tanzania was formed by the unification of the mainland Tanganyika and the islands of Zanzibar in 1964. 2 World Development Indicators (2021), World Bank, Washington DC (https://databank.worldbank.org/source/world-development-indicators). As of 2021, Tanzania’s GNI per capita has reached US$1,140. 3 Bank of Tanzania. Monthly Economic Review, January 2023. 2022 travel receipts rose to US$ 2.56 billion from US$ 1.31 billion in 2021. Tourism arrivals rose 57.7 percent in the same period to 1.45 million compared to a pre-pandemic level of 1.53 million. 4 Based on preliminary statistics from Tanzania National Bureau of Statistics, 2022 Population and Housing Census (https://sensa.nbs.go.tz/) 5 World Bank Independent Evaluation Group, Approach Paper Tanzania Country Program Evaluation (October 2022), analysis of World Development Indicators (2020) Mar 06, 2023 Page 3 of 13 The World Bank DAR ES SALAAM METROPOLITAN DEVELOPMENT PROJECT PHASE II (P180298) grew from 13 million in 2007 to 14 million in 2019.6 Tanzania’s per capita income growth also remains modest due to the rapid rise in population, with an average change in GNI per capita (Atlas method) of US $978 from 2012 to 2021, compared to US $1,647 in Sub-Saharan Africa and US $2,193 for lower-middle income countries.7 Moreover, Tanzania’s economic growth has been driven by sectors such as construction, information and communication technology, and real estate, which employ less than 3 percent of the population.8 Low levels of education and inadequate labor skills have constrained poor households’ access to productive employment opportunities in fast-growing sectors and high fertility rates lead to a mounting supply of labor, with 19 million new potential workers anticipated to need jobs between 2015 and 2030.9 Important progress has been made to expand economic opportunities for women, yet gender inequality is limiting Tanzania’s ability to increase human capital and overall wealth per capita. The female labor-force participation rate rose from 67 percent in 2000-01 to 80 percent in 2019 - well above the 63 percent average for Sub-Saharan Africa and among the highest rates on the continent.10 A growing share of Tanzanian women are also now compensated employees and the ratio of women to men in jobs paying wages and salaries rose from 0.35:1 in 2000 to 0.64:1 in 2019, while the share of women engaged in unpaid agricultural work fell from 78 percent in 2004-05 to 64 percent in 2015-16.11 Yet Tanzania’s Global Gender Gap Index score remained stable at 0.71 in 2021 placing it at 82 out of 156 countries, meaning that women were 29 percent less likely to have the same opportunities as men.12 Only 22 percent of women versus 48 percent of men were in wage employment in the prior 12 months,13 and large and persistent gender gaps in agricultural productivity, wage rates, the business environment, access to land, home ownership and financial services continue to slow economic growth.14 Tanzania’s Development Vision 2025 recognizes that eradication of gender inequality is a key lever to unlock economic opportunity and growth.15 Climate change is having a significant impact on the economy. Tanzania is highly vulnerable to climatic hazards and has limited readiness to adapt and respond to negative climate change impacts. Studies project that the net economic costs of climate change could be equivalent to 1 to 2 percent of GDP per year by 2030.16 Seventy percent of all natural disasters in Tanzania are linked to floods or droughts17 and climate change projections indicate a high likelihood of increased heavy rainfall, increased droughts and heat waves.18 Flooding is the most serious natural hazard, which severely impacts major cities and makes Tanzania the most flood-affected country in East Africa. It is estimated that 463 km2 of settlement area in Tanzania is exposed to high flood risk.19 Flooding is projected to become more frequent and more severe with the wetter conditions and sea level rise.20 Frequent and prolonged droughts have also led to devastating impacts on water 6 World Bank. 2019. Tanzania Mainland Poverty Assessment. Washington, DC: World Bank. 7 World Development Indicators (2021), World Bank, Washington DC (https://databank.worldbank.org/source/world-development-indicators) 8 Chande, Faustina. 2020. Tanzania Economic Update: Raising the Bar - Achieving Tanzania’s Development Vision (English). Tanzania Economic Update,no. 15 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/803171614697018449/Tanzania-Economic-Update-Raising-the-Bar- Achieving-Tanzania-s-Development-Vision 9 Carly Petracco and Javier Sanchez-Reaza. 2018. “Tanzania: Jobs Diagnostic.� World Bank, Washington, DC. License: Creative Commons Attribution CC BY 3.0 IGO. 10 World Bank. Tanzania Economic Update 17th Edition, March 2022. 11 World Bank. Tanzania Economic Update 17th Edition, March 2022. 12 World Economic Forum. 2021. Global Gender Gap Report 2021. Geneva, Switzerland. 13 Hasanbasri, Ardina; Kilic, Talip; Koolwal, Gayatri; Moylan, Heather. 2021. LSMS+ Program in Sub-Saharan Africa : Findings from Individual-Level Data Collection on Labor and Asset Ownership. World Bank, Washington, DC. © World Bank. https: //openknowledge.worldbank.org/handle/10986/35544 License: CC BY 3.0 IGO. 14 World Bank. Tanzania Economic Update 17th Edition, March 2022. 15 United Republic of Tanzania, undated. Tanzania Development Vision 2025. http://www.tzonline.org/pdf/theTanzaniadevelopmentvision.pdf 16 Watkiss, et al. The Economics of Climate Change in the United Republic of Tanzania (2011). 17 Tanzania Climate Action Report, 2015. 18 Trisos, C.H., I.O. Adelekan, E. Totin, A. Ayanlade, J. Efitre, A. Gemeda, K. Kalaba, C. Lennard, C. Masao, Y. Mgaya, G. Ngaruiya, D. Olago, N.P. Simpson, and S. Zakieldeen, 2022: Africa. In: Climate Change 2022: Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change [H.-O. Pörtner, D.C. Roberts, M. Tignor, E.S. Poloczanska, K. Mintenbeck, A. Alegría, M. Craig, S. Langsdorf, S. Löschke, V. Möller, A. Okem, B. Rama (eds.)]. Cambridge University Press, Cambridge, UK and New York, NY, USA, pp. 1285–1455, doi:10.1017/9781009325844.011. 19 World Bank, 2022 Understanding the Changes in Africa’s Urban Exposure to Flood Hazards (unpublished) 20 “World Bank Group. 2017. United Republic of Tanzania Systematic Country Diagnostic : To the Next Level of Development. World Bank, Washington, DC. © World Bank. https://openknowledge.worldbank.org/handle/10986/26236 License: CC BY 3.0 IGO.� Mar 06, 2023 Page 4 of 13 The World Bank DAR ES SALAAM METROPOLITAN DEVELOPMENT PROJECT PHASE II (P180298) sources, biodiversity, agriculture, and hydropower capacity across the country.21 The NDGain index, which measures climate vulnerability of 182 countries and adaptation readiness of 184 countries, ranked Tanzania as the 45th most vulnerable country and 153rd in adaptation readiness.22 Given disproportionate impacts on the poor, as much as 4.2 percent of the population of Sub-Saharan Africa could be internal climate migrants by 2050.23 Thus Tanzania needs to prepare to accommodate large movements of climate change-induced migrants in the next 30 years, and the expected stress on urban areas that will attract in-migration due to better livelihood opportunities. Sectoral and Institutional Context Tanzania’s urban population is growing rapidly, and while its cities are critical for economic growth, the opportunities of urbanization have not been fully captured. The country’s overall urban population growth is the second-fastest among eleven Sub-Saharan African countries with comparable urbanization trends. The share of the total population residing in urban areas increased from 27.4 to 34.5 percent between 2009 and 2019 and half of the population is expected to live in cities by 2050.24 Tanzanian cities already account for most of the country’s physical, financial, and technological capital, and urban areas contribute approximately half of Tanzania’s GDP.25 Despite growing population and economic importance, urban Tanzania lacks economic density: firms and urban jobs are highly concentrated in low-value-added services. The growth of locally consumed goods and services limits the scale of economic benefits of urban areas, and low- density development and urban sprawl has prevailed resulting in poor connectivity between people, industries, and markets. Dar es Salaam is Tanzania’s largest urban agglomeration with a population of 5.3 million. The city’s centrally located international port provides Tanzania and six neighboring landlocked countries access to global markets. This along with the active service sectors, contributes to its economic output which accounts for 17 percent of national GDP.26 Dar es Salaam is comprised of five municipalities and a regional administration. Currently the Dar es Salaam Region is one of 31 administrative regions in Tanzania, consisting of five Municipal Councils – Dar es Salaam city, Kinondoni, Temeke, Ubungo, and Kigamboni. Together the Councils are collectively known as the Dar es Salaam Local Authorities (DLAs). The former Ilala City Council was elevated in February 2021 to become the Dar es Salaam City Council and governs an area that includes the Central Business District (CBD). A Regional Administration also provides general oversight and coordination of the DLAs, responding to national and regional priorities. The Dar es Salaam region lacks any overarching metropolitan government, and instead the five DLAs and Regional Administration report to a central ministry, the President’s Office – Regional Administration and Local Government (PO-RALG). Other ministries and agencies are mandated to manage services such as water supply, protected areas, electricity, regional roads, and land management. While many sector and infrastructure plans have a regional view, key services such as solid waste would benefit from regional management and there are insufficient mechanisms for coordination of infrastructure and service plans and projects. There is also no institution with the mandate for oversight of the implementation of the Dar es Salaam Master Plan. Dar es Salaam’s urbanization is largely unplanned, which is a challenge to the city’s mobility, livability, and resilience. With the lack of urban planning and enforcement of development controls in Dar es Salaam, urbanization has followed the main transport corridors, upgraded roads and infrastructure. Rapid expansion from the city center occurred, predominantly 21United Nations Climate Change, Nationally Determined Contributions Registry. https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Unitedpercent20Republicpercent20ofpercent20Tanzaniapercent20Firstpercent20NDC/TANZANIA_N DC_SUBMISSION_30%20JULYpercent202021.pdf 22 University of Notre Dame Global Adaptation Index, https://gain.nd.edu/our-work/country-index/rankings/ (accessed 08 November 2022) 23 Groundswell, Acting on Internal Climate Migration, Part II. World Bank, 2021. The simulations show under a low emissions scenario, 2.8 percent of the population of sub-Saharan Africa would be internal climate migrants and under a high emissions scenario, 4.2 percent would be internal climate migrants. 24 UN-DESA. 2019. World Population Prospects: The 2019 Revision. New York: United Nations Population Division, Department of Economic and Social Affairs, United Nations. 25 Transforming Tanzania’s Cities: Harnessing Urbanization for Competitiveness, Resilience and Livability, World Bank, 2021. 26 National Bureau of Statistics, 2021 Tanzania in Figures. Mar 06, 2023 Page 5 of 13 The World Bank DAR ES SALAAM METROPOLITAN DEVELOPMENT PROJECT PHASE II (P180298) along the city’s network of four main radial roads and along the western road and northern regional road corridors.27 As a rapid influx of new residents seek affordable housing and economic opportunities, the supply of planned land does not match demand in terms of quality, price and location.28 Settlement has been largely informal and has occurred most commonly along the urban fringe and in flood prone areas along rivers including most significantly, the Msimbazi River Basin. These settlements are highly vulnerable to risks such as flooding, they characterized by inadequate housing, lack of services such as water, sanitation and solid waste management and insufficient road networks. Solid waste management has not received sufficient attention and investment in Dar es Salaam. The city produced an estimated 4,600 tons of waste per day in 2018 and less than 40 percent of it is collected and disposed in formal dumpsites, primarily the main open dumpsite at Pugu29. Current services have large gaps in coverage, reliability and quality caused by organizational and financing challenges. In addition, transport challenges are a major barrier impeding collection service coverage and quality, as well as access to and use of the designated disposal site. Collection vehicles do not have access to roads in informal communities and there are long travel times to the dumpsite. This has resulted in informal dumping by communities and waste collectors, which presents a health hazard, affects city aesthetics, causes clogging up drains and waterways and pollutes the marine environment. While there is an active informal sector, the lack of organization and limited government-led programs has resulted in low recycling and resource recovery rates and poor working conditions. To mitigate flood risk and improve the health and cleanliness of the city, solid waste management solutions are needed at the scale of the Dar es Salaam Region. While several studies have focused on the issue and proposed solutions, none have been implemented at scale and the sector is significantly under invested30. Dar es Salaam’s urbanization is increasing greenhouse gas (GHG) emissions: GHG emissions from the sprawling urbanization and traffic congestion are costly in terms of quality of life for residents and economic efficiency and are also hindering progress towards a low-carbon development trajectory31. The implementation of the extensive Bus Rapid Transit system (BRT) network has already started to alleviate congestion and cut travel times. However, the BRT needs better integration with urban settlements, services, commerce, road networks including feeder routes and non-motorized transport to fully reach its potential. Another important GHG emission source in Dar es Salaam is from the solid waste management system, due to the transport challenges, limited large scale recycling and unsanitary disposal of waste. Dar es Salaam’s urbanization is exacerbating the impacts of climate change on the city: Urbanization has resulted in the loss of green space and their replacement by hard surfaces such as roads and other infrastructure and building roof area. This has affected both the heat and water flow in these urbanized areas. These changes are causing increased temperature in built-up areas, increased runoff during rainstorms causing erosion, increased flood intensity and reduced recharge of aquifers used for water supply. These urbanization-induced impacts are expected to continue to grow and exacerbated by the impacts of climate change. In 2019 alone, the city experienced nine major floods; a single flood event in April 2018 cost between 2 and 4 percent of Dar es Salaam’s GDP32. Exposure is widespread but most significant in the urbanized areas of the Msimbazi Basin; at least 39 percent of the city’s population, or 2 million people, have been impacted either directly 27 Ministry of Lands, Housing and Human Settlements Development, Dar es Salaam City Master Plan 2012 – 2032 (2017) 28 President’s Office Regional Administration and Local Government, DMDP Draft Implementation Completion Report, November 2022. 29 Department of Chemical and Mining Engineering University of Dar es Salaam, 2018. United Republic of Tanzania the National Solid Waste Management Strategy. Available: https://wedocs.unep.org/bitstream/handle/20.500.11822/31292/NWMS_Tanzania.pdf?sequence=1&isAllowed=y 30 Studies on solid waste in Dar es Salaam include a World Bank financed study under DMDP (2014); The United Nations-financed strategy for Dar es Salaam (2018); Netherlands-financed technical advisory services (2016) and the World Bank feasibility study and business plan for an intermunicipal solid waste management organization (2021). 31 Floater, Graham, et al. Cities and the New Climate Economy: the transformative role of global urban growth. No. 60775. London School of Economics and Political Science, LSE Library, 2014. 32 Erman, A., Obolensky, M., & Hallegatte, S. (2019). Wading out the storm: The role of poverty in exposure, vulnerability and resilience to floods in Dar Es Salaam. World Bank. Mar 06, 2023 Page 6 of 13 The World Bank DAR ES SALAAM METROPOLITAN DEVELOPMENT PROJECT PHASE II (P180298) or indirectly by floods with poor and vulnerable households over-represented among those affected by floods.33 Flood modelling has shown that both urbanization and climate change will increase flood area in the Msimbazi Basin, and in the other urbanizing basins, flooding will become more common and more severe34. The city experienced prolonged dry spells in 2021 and 2022, resulting in reduction in the water available from the upstream rivers used by the public water utility (DAWASA) and concomitant rationing of water. Shallow ground water which is depleted and suffering from salt-water intrusion due to lack of rainwater recharge was at the time exploited as a means of adapting to the shortage. The Urban Heat Island (UHI) effect is also a growing concern: while the city’s coastal location brings a cooling effect, sur face temperatures in the city are up to 12°C warmer than in surrounding landscapes.35 With the number of very hot days expected to rise in line with climate change projections,36 urban heat is a growing concern for both public health and energy consumption. The World Bank has supported sustainable urban development in Dar es Salaam for nearly 20 years . This has been primarily through (i) the Local Government Support Project 1 and 2 (P070736), which closed in Fiscal Year (FY) 2013 and supported infrastructure upgrading in informal settlements and own source revenue collection, (ii) the Dar es Salaam Urban Transport Improvement Project (DUTP-P150937), which supports implementation of lines 1-4 of the BRT corridors, is expected to close in December 2023; and (iii) the first phase of the Dar es Salaam Metropolitan Development Project (DMDP-P123134). To address the flooding which causes widespread externalities to the city as a whole, the Msimbazi Basin Development Project (P169425) was approved by the World Bank Board in 2022. The Msimbazi Basin Development project supports an integrated approach to flood mitigation and redevelopment of this environmentally degraded and flood-prone yet economically important river valley location in the Dar es Salaam city center. The DMDP was designed as a Series of Projects (SOP) in the Dar es Salaam region , to help address immediate service provision and capacity building demands for urban infrastructure, services, and flood mitigation measures across Dar es Salaam’s neighborhoods. This proposed project DMDP Phase II (DMDPII) is the second in the SOP, following the closure and building on the results of DMDP and it aims to address the constraints to quality of life and economic competitiveness in Dar es Salaam caused by rapid unplanned urbanization, urban flooding, and weak urban governance. The project aims to achieve this goal by improving the urban environment, enhancing urban mobility and connectivity, reducing resident’s exposure to climate risks and hazards, improving urban management, and increasing urban densities. Infrastructure investments through DMDP have delivered positive outcomes for urban infrastructure, services, local economies, and flood mitigation across Dar es Salaam’s neighborhoods. Over 4 million people have benefited from the infrastructure developed under the project. In total, DMDP delivered 207 kilometers of roads, which include street lighting, sidewalks and roadside drainage. These road investments have positively impacted property values, catalyzed new local businesses, improved connectivity and alleviated congestion.37 The road investments have also complemented the DUTP project, by increasing accessibility of the BRT corridors through improved feeder road connections. Community amenities in low-income areas were also upgraded, which provided widely used health facilities, recreational public spaces, water kiosks and markets. Seventy-five kilometers of trunk and secondary drains have been constructed in five river basins, including the city’s first stormwater detention basins – together protecting 406 hectares of land from 1 in 10- year flood events including many low-income neighborhoods. Continued financing is needed to provide climate-informed infrastructure, planning and institutions for the future of Dar es Salaam. The city still has large gaps in the road network and one of the lowest urban road densities in the world, with the majority of the city’s area at less than 0.5 km/km2 and 33 World Bank. 2019. Tanzania Economic Update, December 2019. Washington, DC: World Bank. https://openknowledge. worldbank.org/handle/10986/32791. 34 World Bank, Flood risk assessment and scenarios dashboard for the city of Dar es Salaam and Zanzibar city, Deltares, 2021. 35 Ibid. 36 Dar es Salaam will likely experience warmer average temperatures (projected at a 2-4°C increase until 2100), and a higher number of extremely hot days (above 34.6 °C) and nights (above 24.5 °C). 37 President’s Office Regional Administration and Local Government, Draft Implementation Completion Report. November 2022. Mar 06, 2023 Page 7 of 13 The World Bank DAR ES SALAAM METROPOLITAN DEVELOPMENT PROJECT PHASE II (P180298) only the central business district exceeding 4 km/km2 38. Before DMDP, only 20 percent of the city’s 2,170 km of roads were paved. Over 1,500 km of roads are still in poor condition and lack drainage, lighting, and a safe environment for non- motorized users. Furthermore, although roads have helped improve accessibility to Dar es Salaam’s BRT, more could be done deliver jobs and contain sprawl through Transit Oriented Development (TOD) and development of economic nodes.39 Furthermore, although the primary drainage network has been improved, over 50 percent of the existing network is still in poor condition and flooding still affects large areas of the city. Solid waste services are severely underperforming, affecting livability, economy and health. Relationship to CPF The project is aligned with the World Bank Group Country Partnership Framework (CPF) for Tanzania 2018-2022 as discussed by the World Bank Board of Directors in March 2018 as well as the 2017 Systematic Country Diagnostic (SCD). The SCD notes that better urban planning, proper infrastructure to facilitate industrial agglomeration, and, given its critical role in the national economy and in job creation, transforming Dar es Salaam into an efficient urban agglomeration is a national priority. Under the first focus area of the CPF, harnessing urbanization to promote economic growth and job creation (Objective 1.5) has been identified as a priority area to leverage the World Bank’s assistance. The CPF also acknowledges Tanzania’s vulnerability to the effects of climate change, prioritizes resilient infrastructure, and commits to stepping up support to urban disaster risk management and climate change adaptation through risk- informed and climate-smart green solutions. In addition to activities that directly promote women’s entrepreneurship and wage work, the project will support the CPF goals of promoting women’s roles in decision making and gender -sensitive urban infrastructure that addresses women’s personal safety, which should give more freedom to participate in income - generating opportunities. The project also contributes to the World Bank Group’s twin goals of ending extreme poverty and promoting shared prosperity by reducing flooding especially in unplanned settlements where the urban poor reside, protecting public transport infrastructure, and creating an enabling environment for economic development. The project will be aligned with the WBG Climate Change Action Plan 2021 – 2025 and the Paris Agreement and integrated into the Country Climate and Development Report for Tanzania which is under preparation. C. Proposed Development Objective(s) Note to Task Teams: The PDO has been pre-populated from the datasheet for the first time for your convenience. Please keep it up to date whenever it is changed in the datasheet. Please delete this note when finalizing the document. To improve urban services and institutional capacity, and to strengthen climate resilient development in the Dar es Salaam Region.40 Key Results (From PCN) 38 The project for revision of Dar es Salaam urban transport master plan in the United Republic of Tanzania, JICA, 2018. 39 JICA is currently supporting PO-RALG with TOD feasibility studies and planning, which this proposed project can leverage and help implement. 40 Reducing exposure and vulnerability to climate hazards and reducing greenhouse gas emissions is inherent to the definition of climate resilient development as per the IPCC (2022) https://www.ipcc.ch/report/ar6/wg2/downloads/faqs/IPCC_AR6_WGII_Overaching_OutreachFAQ6.pdf Mar 06, 2023 Page 8 of 13 The World Bank DAR ES SALAAM METROPOLITAN DEVELOPMENT PROJECT PHASE II (P180298) The key results are: • Number of beneficiaries with access to improved urban services and infrastructure designed using climate information and tools. • Number of beneficiaries benefiting from reduced flood risk in Dar es Salaam. • % of collected waste disposed in sanitary landfills or recycled. • Number of infrastructure plans and standards incorporating climate information and tools. D. Concept Description Component 1 Climate-Smart Priority Infrastructure (US$256 million) Component 1 responds to ongoing demands for basic transport, drainage, parks and open space, and community infrastructure. It integrates climate adaptation measures into all infrastructure investments and will address the city’s high flood risk by combining conventional engineering technologies (grey infrastructure) with nature-based solutions (green and blue infrastructure), creating additional benefits of urban cooling and increased greenspaces for public use. Component 1 also encourages a shift towards low carbon transport modes and urban infill, through the clustering and co- location of multisectoral investments around the BRT in the city center and in underserved and marginalized urban neighborhoods. Spatial targeting of investments around public transit will promote densification and improve accessibility of underserved and marginalized people to mass transportation, economic hubs, and open spaces41. Sub-Component 1.1 Resilient Transport Infrastructure This sub-component will address traffic congestion and major bottlenecks by completing critical gaps in the local and feeder road network. These road connections will help reduce travel times by providing direct connections between key employment and population hubs, accessibility to BRT stations, and will help improve access for low-income communities. Pedestrian and cyclist infrastructure, and road design safety features for vulnerable groups will be incorporated into the BRT feeder road design to encourage multi-modal commuting. Flood hazard risk modelling will inform the road design. Roadside drainage will utilize a mix of grey and green infrastructure, including landscaping and other measures to manage erosion and promote cooling while increasing rainwater infiltration and reducing runoff. This sub-component will finance interventions such as upgrading and construction of priority sections of the local and feeder road network incorporating pedestrian paths, cycle lanes and paths, solar street lighting, street trees, roadside drains, greening and erosion control infrastructure. Sub-Component 1.2 Resilient and Green Drainage Systems This sub-component will build resilience to annual flooding events that are expected to become more frequent and severe according to climate change projections. Incorporating a combination of traditional stand-alone “grey� infrastructure drains with sustainable urban drainage systems42, the approach is to expand capacity of the drainage network while encouraging water retention, storage and infiltration, to attenuate flood peaks, increase groundwater recharge and reduce erosion. The designs will also include landscaping to help sequester carbon, reduce urban heat, 41 This will be complemented by Component 3 which will support planning reform and capacity building to support densification and transit-oriented development. 42 Sustainable urban drainage systems (SUDs) are drainage systems that copy nature, by managing precipitation and surface water where it falls. SUDS slows down surface water to allow it to be evaporated, or transpired through vegetation, or naturally drain into watercourses and groundwater. Mar 06, 2023 Page 9 of 13 The World Bank DAR ES SALAAM METROPOLITAN DEVELOPMENT PROJECT PHASE II (P180298) and improve public space. This sub-component will finance strategic drainage investments including: (i) construction of stand-alone drains using a combination of grey and green drainage infrastructure; (ii) water detention, retention and infiltration basins; and (iii) sustainable urban drainage system features (water detention, retention and infiltration basins, soakaways, sediment traps, tree planting, green roofs, swales, berms, filter drains, rip-rap and other erosion control structures). Sub-Component 1.3 Parks and Open Space This sub-component will increase parks and open spaces throughout the city, expanding green linkages in select linear features, including rivers and drainage. The approach is to provide multifunctional green spaces which: i) address deficiencies in public open space for leisure and recreation; ii) provide green and blue corridors for non-motorized transport connections; and iii) enhance urban stormwater management. Investments will improve quality of life, improve mobility, mitigate flood risk, sequester carbon, reduce erosion and sedimentation and the promote cooling in Dar es Salaam. This sub-component will finance the design and construction of parks and public open spaces, including: (i) landscaping and greening; (ii) recreational features; (ii) utilities and buildings; (iii) paths for cycling and walking; and (iv) sustainable urban drainage system features. Sub-Component 1.4 Area based urban development This sub-component will provide infrastructure that supports compact city and TOD through strategic location of community services, facilities, markets, BRT or feeder bus stations and commercial development to support reduced travel times and multi-purpose urban areas. The sub-component will address geographic deficiencies in urban infrastructure by providing works including: i) local roads, drainage, street lighting, public spaces, landscaping, and utilities services; ii) upgrading and construction of public markets; iiii) bus stands; iii) health clinics, childcare centers, and government services. A strategic approach to identify and undertake urban planning of the area to encourage local economic development, improved safety, security and accessibility to public transit. Component 2 Integrated Solid Waste Management Infrastructure and Services (US$50 million, including US$30 million from Netherlands, and US$20 million from IDA) Component 2 will develop an integrated solid waste management system for Dar es Salaam. The proposed system will improve infrastructure for safe handling and disposal of waste and implementation of recycling, and resource recovery technologies that aims to reduce reliance on landfills, increase recovery of resources to support livelihoods, and reduce pollution from litter including plastics. It will be designed with the goal of reducing GHG emissions from landfills and closed dumpsites, recycling and waste recovery systems. The approach to recycling will help provide alternative the recycling activities ongoing at the Pugu dumpsite and create opportunities for informal recyclers working on the street43. The component will support a more sustainable institutional, regulatory and financing framework by supporting the establishment of an intermunicipal institution to manage the regional infrastructure, regulate tariffs and local government services of collection and cleaning44. 43 A self-organized group of 500 people work collecting recyclables on the Pugu dumpsite, many of which live nearby (but not on) the dumpsite. A livelihood program will be developed for these groups as part of the project. Informal recyclers also productively work on the street of Dar es Salaam collecting bottles and other items of value. The collection and recycling system will be designed to incorporate them and their important role in the solid waste system in the city. This will be one in coordination with ongoing initiatives by the government and NGOS on registering informal waste collectors. 44 Several detailed studies and plans have been undertaken on solid waste management in Dar es Salaam including the World Bank financed study under DMDP (2014); The UN financed strategy for Dar es Salaam (2018); the Netherlands financed technical expert advice (2016) and the World Bank feasibility for an intermunicipal solid waste management organization (2021). The Government of the Netherlands is financing the updating of these previous plans and studies for solid waste in Dar es Salaam that will assess options and develop the detailed design and environmental and social instruments for this component. Mar 06, 2023 Page 10 of 13 The World Bank DAR ES SALAAM METROPOLITAN DEVELOPMENT PROJECT PHASE II (P180298) This component will finance, inter alia: (i) construction of solid waste infrastructure (landfills, transfer stations and recycling facilities)45; (iv) closure of the major dumpsite in Dar es Salaam (Pugu Dumpsites) considering feasible options for solar energy production or landfill gas capture and rehabilitate or close other informal dumpsites; (v) results based financing for solid waste collection, financing operations and maintenance, disposal and recycling systems; (vi) institutional strengthening and legal reform to support the development of an intermunicipal solid waste management organization for Dar es Salaam, and implementation of its business plan including tariff and billing collection system, operational protocols and staffing; (vii) support to informal waste sector integration and support for alternative livelihoods for male and female waste-pickers. Component 3 Strengthening Urban Institutions (US$28.3 million) This component will be implemented by PO-RALG and will focus on strengthening new and existing institutions and building capacity to achieve improvements in urban and emergency planning, services and infrastructure, enhancing the sustainability of investments made through Component 1 and 2 and mainstreaming climate friendly urban planning, infrastructure and services. It will include, inter alia: (i) Strengthening of service delivery and sustainability for municipal and city-wide services targeted under components 1 and 2. It will review and reform human resources, organization, protocols and procedures, IT systems; revenue and billing, asset management and maintenance arrangements; (ii) Strategic Service and Infrastructure Planning and Standards would be undertaken, financing the updating of existing infrastructure and service plans (drainage, roads, green spaces, markets), improving mechanisms of infrastructure coordination and design of new investments that incorporate climate change and related innovations proposed under component 1 and 2. It will also finance the updating or establishment of infrastructure and design standards to incorporate these elements including updating by-laws, guidelines and other legal instruments; (iii) Strengthening urban planning through preparation of urban plans (land use plans and surveys, hazard informed planning); improving organization, by-laws and regulations, procedures and processes and IT tools for urban development controls. It would also finance strengthening of the city-wide master planning process; (iv) Emergency Response Planning would be strengthened through support of the operation of regional governments emergency response team and community level emergency plans. Component 4: Project Management (US$15.7 million) This component will finance the direct costs of management and operation of the project to ensure smooth delivery and compliance with World Bank policy and guidelines. It will provide support to the President’s Office – Regional Administration and Local Government (PO-RALG), DLAs, and the Dar es Salaam City Council Project Implementation Unit (PIU) for continual project supervision, environmental and social monitoring, fiduciary management and auditing, office operating costs. Given the large number of stakeholders and criticality of stakeholder engagement in both planning and implementation of the project activities, this component will also finance public communications activities, stakeholder coordination, implementation completion report and preparation of additional investments. Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. Please delete this note when finalizing the document. 45 The transport system in Dar es Salaam and the location of the Pugu dumpsite is a major barrier for disposal of waste with many areas not able to practically transport their waste to the disposal site. A preliminary analysis has shown that a combination of transfer stations and multiple landfills (2 or 3) will help overcome the transport limitations currently limiting collection and disposal of waste in Dar es Salaam. Several sites have been identified preliminarily, however, the number and location of the landfills are subject of the detailed design study being contracted that will assess the best locations from an environmental, social and technical perspective. Mar 06, 2023 Page 11 of 13 The World Bank DAR ES SALAAM METROPOLITAN DEVELOPMENT PROJECT PHASE II (P180298) Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Summary of Screening of Environmental and Social Risks and Impacts . Note to Task Teams: This summary section is downloaded from the PCN data sheet and is editable. It should match the text provided by E&S specialist. If it is revised after the initial download the task team must manually update the summary in this section. Please delete this note when finalizing the document. Note: To view the Environmental and Social Risks and Impacts, please refer to the Concept Stage ESRS Document. Please delete this note when finalizing the document. . CONTACT POINT World Bank John Morton, Yonas Eliesikia Mchomvu Senior Urban Specialist Borrower/Client/Recipient Ministry of Finance and Planning Implementing Agencies Presidents Office- Regional Administration and Local Government Humphrey Kanyenye Coordinator for World Bank Financing kanyenyehn@gmail.com Mar 06, 2023 Page 12 of 13 The World Bank DAR ES SALAAM METROPOLITAN DEVELOPMENT PROJECT PHASE II (P180298) FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Task Team Leader(s): John Morton, Yonas Eliesikia Mchomvu Approved By APPROVALTBL Country Director: Preeti Arora 21-Mar-2023 Note to Task Teams: End of system generated content, document is editable from here. Please delete this note when finalizing the document. Mar 06, 2023 Page 13 of 13