FOR OFFICIAL USE ONLY
                                                                                   Report No: PAD4817



                            INTERNATIONAL DEVELOPMENT ASSOCIATION

                                   PROJECT APPRAISAL DOCUMENT
                                              ON A
                                         PROPOSED CREDIT

                               IN THE AMOUNT OF EUR 282.8 MILLION
                                  (US$300.0 MILLION EQUIVALENT)

                                  FROM THE IDA SCALE UP WINDOW

                                                 TO THE

                                      REPUBLIC OF CÔTE D’IVOIRE

                                                  FOR A

                     SUSTAINABLE AND INCLUSIVE SECONDARY CITIES PROJECT

                                             March 9, 2023




Urban, Resilience And Land Global Practice
Western and Central Region




  This document has a restricted distribution and may be used by recipients only in the performance of
  their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
                   CURRENCY EQUIVALENTS

          (Exchange Rate Effective February 28, 2023)

              Currency Unit = Euro (EUR)
                      US$1 = EUR 0.942595910

                         FISCAL YEAR
                   January 1 - December 31




Regional Vice President: Ousmane Diagana
      Country Director: Coralie Gevers
     Regional Director: Simeon Kacou Ehui
     Practice Manager: Sylvie Debomy
    Task Team Leaders: Camille Bourguignon-Roger, Vivien Deparday
                                   ABBREVIATIONS AND ACRONYMS
ACD        Urban Land Title (Arrêté de concession definitive)
AFD        French Development Agency (Agence française de développement)
AGEROUTE   Roads Management Agency (Agence de Gestion des Routes)
ANAGED     National Waste Management Agency (Agence Nationale de Gestion des Déchets)
ANDE       National Environment Agency (Agence Nationale de l’Environnement)
ASA        Advisory Services and Analytics
AWPB       Annual Work Plan and Budget
BCEAO      Central Bank of West African States (Banque Centrale des Etats de l’Afrique de l’Ouest)
BOAD       West African Development Bank (Banque Ouest-Africaine de Développement)
CERC       Contingent Emergency Response Component
CIGN       Geographic and Digital Information Center (Centre d’information géographique et numérique)
COVID-19   Coronavirus Disease 2019
CPF        Country Partnership Framework
CSO        Civil Society Organization
DGDDL      General Directorate for Decentralization and Local Development (Direction Générale de la
           Décentralisation et du Développement Local)
DPIO       Decentralized Project Implementation Office
DA         Designated Account
EIRR       Expected Internal Rate of Return
ESCP       Environmental and Social Commitment Plan
ESF        Environmental and Social Framework
ESMF       Environmental and Social Management Framework
FA         Financing Agreement
FM         Financial Management
GDP        Gross Domestic Product
GHG        Greenhouse Gas
GPN        General Procurement Notice
GRID       Green Resilient and Inclusive Development
GRM        Grievance Redress Mechanism
GRS        Grievance Redress Service
IBRD       International Bank for Reconstruction and Development
IDA        International Development Association
IFR        Interim Financial Report
IGF        General Inspectorate of Finance (Inspection Générale des Finances)
IPCC       Intergovernmental Panel on Climate Change
IPF        Investment Project Financing
ISC        Inter-Ministerial Steering Committee
LAC        Local Advisory Committee
LMP        Labor Management Procedures
M&E        Monitoring and Evaluation
MCLU       Ministry of Construction, Housing, and Urban Development (Ministère de la Construction, du
           Logement et de l’Urbanisme)
MINHAS     Ministry of Water and Sanitation (Ministère de l’Hydraulique, de l’Assainissement et de la
           Salubrité)
MIS        Ministry of Interior and Security
NDC        Nationally Determined Contributions
NDP       National Development Plan
NPV       Net Present Value
NGO       Non-governmental organization
ONAD      National Office for Sanitation and Drainage (Office National de l’Assainissement et du Drainage)
PA        Project Account
PARU      Urban Resilience and Solid Waste Management Project (Projet d’assainissement et de
          résilience urbaine)
PCU       Project Coordinating Unit
PDO       Project Development Objective
PIM       Project Implementation Manual
PIP       Priority Investment Plan
PPSD      Project Procurement Strategy for Development
QII       Quality Infrastructure Investments
RPF       Resettlement Policy Framework
SCD       Systematic Country Diagnostic
SEA/SH    Sexual Exploitation and Abuse/Sexual Harassment
SEP       Stakeholder Engagement Plan
SPN       Specific Procurement Notices
TORs      Terms of Reference
UN        United Nations
UVICOCI   Union of Cities and Municipalities of Côte d'Ivoire (Union des Villes et Communes de Côte d’Ivoire)
WAEMU     West African Economic and Monetary Union
The World Bank
Sustainable and Inclusive Secondary Cities Project (P177062)



                                                         TABLE OF CONTENTS

  DATASHEET ........................................................................................................................... 1
  I.    STRATEGIC CONTEXT ...................................................................................................... 8
        A. Country Context................................................................................................................................ 8
        B. Sectoral and Institutional Context .................................................................................................. 10
        C. Relevance to Higher Level Objectives............................................................................................. 14
  II.   PROJECT DESCRIPTION.................................................................................................. 16
        A. Project Development Objective ..................................................................................................... 16
        B. Project Components ....................................................................................................................... 16
        C. Project Beneficiaries ....................................................................................................................... 28
        D. Results Chain .................................................................................................................................. 29
        E. Rationale for World Bank Involvement and the Role of Partners .................................................. 29
        F. Lessons Learned and Reflected in the Project Design .................................................................... 30
  III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 31
        A. Institutional and Implementation Arrangements .......................................................................... 31
        B. Results Monitoring and Evaluation Arrangements......................................................................... 32
        C. Sustainability................................................................................................................................... 33
  IV. PROJECT APPRAISAL SUMMARY ................................................................................... 33
        A. Economic Analysis .......................................................................................................................... 33
        B. Fiduciary.......................................................................................................................................... 34
        C. Legal Operational Policies ............................................................................................................... 37
        D. Environmental and Social .............................................................................................................. 37
  V. GRIEVANCE REDRESS SERVICES ..................................................................................... 38
  VI. KEY RISKS ..................................................................................................................... 38
  VII. RESULTS FRAMEWORK AND MONITORING ................................................................... 41
        ANNEX 1: Implementation Arrangements and Support Plan .......................................... 54
        ANNEX 2: Economic Analysis ......................................................................................... 66
        ANNEX 3: Climate Co-Benefits ....................................................................................... 72
        ANNEX 4: Priority Investment Plan: Framework ............................................................ 80
        ANNEX 5: Map .............................................................................................................. 82
     The World Bank
     Sustainable and Inclusive Secondary Cities Project (P177062)




DATASHEET

BASIC INFORMATION
BASIC_INFO_TABLE
Country(ies)                   Project Name

Cote d'Ivoire                  Sustainable and Inclusive Secondary Cities Project

Project ID                     Financing Instrument         Environmental and Social Risk Classification

                               Investment Project
P177062                                                     Substantial
                               Financing


Financing & Implementation Modalities

[ ] Multiphase Programmatic Approach (MPA)                     [✓] Contingent Emergency Response Component (CERC)
[ ] Series of Projects (SOP)                                   [ ] Fragile State(s)

[ ] Performance-Based Conditions (PBCs)                        [ ] Small State(s)

[ ] Financial Intermediaries (FI)                              [ ] Fragile within a non-fragile Country

[ ] Project-Based Guarantee                                    [ ] Conflict

[ ] Deferred Drawdown                                          [ ] Responding to Natural or Man-made Disaster

[ ] Alternate Procurement Arrangements (APA)                   [ ] Hands-on Enhanced Implementation Support (HEIS)



Expected Approval Date            Expected Closing Date

30-Mar-2023                       31-May-2029

Bank/IFC Collaboration

No

Proposed Development Objective(s)

The Development Objective is to (i) improve access to green and climate resilient urban infrastructure and basic
services, and (ii) strengthen local government capacity for participatory and climate risk-informed urban and
economic planning in selected secondary cities




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      Sustainable and Inclusive Secondary Cities Project (P177062)




 Components

 Component Name                                                                              Cost (US$, millions)
 Component 1: Developing Green and Climate Resilient Urban infrastructure in
                                                                                                          250.00
 Selected Secondary Cities
 Component 2: Providing Support to Local Governments in Selected Secondary Cities                           30.00

 Component 3: Project Management and Coordination                                                           20.00

 Component 4: Contingent Emergency Response                                                                  0.00

 Organizations

 Borrower:                                   Republic of Côte d'Ivoire
 Implementing Agency:                        Ministry of Water and Sanitation


 PROJECT FINANCING DATA (US$, Millions)

SUMMARY                 -NewFin1




 Total Project Cost                                                                                            300.00

 Total Financing                                                                                               300.00

                 of which IBRD/IDA                                                                             300.00

 Financing Gap                                                                                                      0.00

DETAILS   -NewFinEnh1




 World Bank Group Financing

   International Development Association (IDA)                                                                 300.00

      IDA Credit                                                                                               300.00


IDA Resources (in US$, Millions)
                                                                                       Guarantee
                                   Credit Amount    Grant Amount         SML Amount                   Total Amount
                                                                                         Amount
Cote d'Ivoire                             300.00              0.00              0.00        0.00                300.00




                                                                                                     Page 2 of 82
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         Sustainable and Inclusive Secondary Cities Project (P177062)



   Scale-Up Window
                                      300.00                0.00                 0.00                0.00               300.00
   (SUW)
 Total                                300.00                0.00                 0.00                0.00               300.00

 Expected Disbursements (in US$, Millions)

 WB Fiscal Year                                           2023          2024   2025     2026     2027        2028           2029

 Annual                                                   0.00      26.98      31.33    39.89    57.46       67.75          76.59

 Cumulative                                               0.00      26.98      58.31    98.20   155.66      223.41     300.00



 INSTITUTIONAL DATA

 Practice Area (Lead)                                      Contributing Practice Areas
                                                           Agriculture and Food, Education, Health, Nutrition &
 Urban, Resilience and Land
                                                           Population, Social Sustainability and Inclusion

 Climate Change and Disaster Screening
 This operation has been screened for short and long-term climate change and disaster risks


 SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)


Risk Category                                                                               Rating

1. Political and Governance                                                                  Substantial

2. Macroeconomic                                                                             Moderate

3. Sector Strategies and Policies                                                            Moderate

4. Technical Design of Project or Program                                                    Substantial

5. Institutional Capacity for Implementation and Sustainability                              Substantial

6. Fiduciary                                                                                 Substantial

7. Environment and Social                                                                    Substantial

8. Stakeholders                                                                              Moderate

9. Other                                                                                     Substantial



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10. Overall                                                                            Substantial


 COMPLIANCE

Policy
Does the project depart from the CPF in content or in other significant respects?
[ ] Yes   [✓] No

Does the project require any waivers of Bank policies?
[ ] Yes   [✓] No


Environmental and Social Standards Relevance Given its Context at the Time of Appraisal

E & S Standards                                                                     Relevance

Assessment and Management of Environmental and Social Risks and Impacts             Relevant

Stakeholder Engagement and Information Disclosure                                   Relevant

Labor and Working Conditions                                                        Relevant

Resource Efficiency and Pollution Prevention and Management                         Relevant

Community Health and Safety                                                         Relevant

Land Acquisition, Restrictions on Land Use and Involuntary Resettlement             Relevant

Biodiversity Conservation and Sustainable Management of Living Natural              Relevant
Resources
Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional         Not Currently Relevant
Local Communities
Cultural Heritage                                                                   Relevant

Financial Intermediaries                                                            Not Currently Relevant


NOTE: For further information regarding the World Bank’s due diligence assessment of the Project’s potential
environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review
Summary (ESRS).



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      Sustainable and Inclusive Secondary Cities Project (P177062)



Legal Covenants

Sections and Description
FA, Schedule 2, Section I, A, 2: The Recipient shall: (a) no later than one (1) month after the Effective Date, establish
a new committee (“Inter-Ministerial Steering Committee” or “ISC”) under the authority of its Prime Minister, and
thereafter maintain it throughout the period of implementation of the Project with terms of reference,
composition and resources acceptable to the Association. Without limitation to the foregoing provision, the ISC
shall (i) be responsible for the provision of overall strategic guidance to the Project, the approval of Annual Work
Plans and Budgets, and coordination among stakeholders; and (ii) include representatives of the Recipient’s line
ministries and specialized agencies involved in the implementation of the Project.

Sections and Description
FA, Schedule 2, Section I, A.3 (a): The Recipient shall designate and charge the PARU PCU (“PCU”), under MINHAS,
with overall responsibility for coordination and implementation of the Project: with this respect, the Recipient shall
ensure that no later than one (1) month after the Effective Date, the mandate of the PCU is expanded to also
include the Project and that the contracts of the PCU staff working on the Project is amended as needed to cover
their services in connection with the Project for a term commensurate with the period of implementation of the
Project.

Sections and Description
FA, Schedule 2, Section I, B.1 (d): If during Project implementation, the Recipient decides to use its military or
security forces, the Recipient shall prior to any involvement of its military and/or security forces in the carrying out
of Project activities, send a written notice to the Association (in accordance with Section 11.01(b) of the General
Conditions) communicating such decision, including the name of the military or security unit.

Sections and Description
ESCP: A draft SEA / SH Prevention and Management Action is included in the disclosed ESMF. The Plan shall be
refined, disclosed, consulted upon, and adopted no later than 120 days after the Effective Date.

Sections and Description
FA, Schedule 2, Section I, A.3 (c) (B): The Recipient shall recruit, from a date not later than three (3) months after
the Effective Date, and thereafter maintain the following additional staff to strengthen the PCU (in addition to the
key staff currently based in Abidjan): a procurement specialist, a financial management specialist, a monitoring and
evaluation specialist, an environmental specialist, a social development specialist and others as may be mentioned
in the ESCP, a civil engineer and an urban development specialist.

Sections and Description
ESCP: Three (3) months after the effective date, additional staff (including an environmental specialist, a social
development specialist, and a gender specialist) will be recruited to strengthen the PCU and maintained throughout
the implementation of the project, as outlined in the Financial Agreement.

Sections and Description
ESCP: Establish and operationalize the Project GM prior to carrying out project activities and maintain and operate
the mechanism throughout Project implementation.


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Sections and Description
ESCP: The SMP shall be developed, consulted upon, and adopted before the carrying out of the Project activities,
and thereafter implement the SMP throughout Project implementation.

Sections and Description
ESCP: Submit the respective RAP for the Association’s prior review and no objection, adopt, and disclose the RAP,
and once adopted, implement the respective RAP, including ensuring that before taking possession of the land and
related assets, full compensation has been provided and displaced people have been resettled and moving
allowances have been provided.


Conditions

Type                    Financing source            Description
Effectiveness           IBRD/IDA                    FA, Article IV, 4.01 a): the Recipient has recruited a Manager for the
                                                    Decentralized Project Implementation Office (“DPIO”) in Korhogo,
                                                    in accordance with Section I.A.3(c)(i) of Schedule 2 to this
                                                    Agreement.
Type                    Financing source            Description
Effectiveness           IBRD/IDA                    FA, Article IV, 4.01 b): the Recipient, through its PCU, has signed
                                                    Project Implementation Support Framework Agreements with the
                                                    Recipient’s following ministries and specialized agencies: Ministry of
                                                    Construction, Housing and Urban Development, Ministry of
                                                    National Education and Literacy, Ministry of Health, Public Hygiene
                                                    and Universal Health Coverage, AGEROUTE ONAD, and ANAGED, all
                                                    in accordance with Section I.A.3(d) of Schedule 2 to this Agreement
Type                    Financing source            Description
Effectiveness           IBRD/IDA                    FA, Article IV, 4.01 c): the Recipient has prepared and adopted the
                                                    Project Implementation Manual (“PIM”), in accordance with Section
                                                    I.B.1 of Schedule 2 to this Agreement.
Type                    Financing source            Description
Disbursement            IBRD/IDA                    FA, Schedule 2, Section III, B.1 (b): No withdrawal shall be made for
                                                    expenditures under Category (2), unless and until: (i) the Recipient
                                                    has provided at least one (1) resettlement action plan in connection
                                                    with affected people as a result of activities to be implemented
                                                    under Part 1 of the Project, in accordance with the provisions of the
                                                    ESCP, in form and substance acceptable to the Association; and (ii)
                                                    the Association has confirmed its agreement to allocate funds of
                                                    the Credit to Category (2) for the financing of the expenditures to
                                                    be incurred by the Recipient for the implementation of such

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                                              resettlement action plan.




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      Sustainable and Inclusive Secondary Cities Project (P177062)



I. STRATEGIC CONTEXT

A. Country Context
      1.       Côte d’Ivoire’s economy has been relatively resilient throughout the COVID-19 pandemic. While
      economic growth fell from an average of 6.9 percent during 2017-2019, to 2 percent in 2020 (a real per
      capita decline of 0.6 percent), Côte d’Ivoire was among the best performing economies in sub-Saharan
      Africa.1 COVID-19 response measures resulted in the fiscal deficit rising from 2.3 percent to 5.6 percent of
      gross domestic product (GDP) between 2019 and 2020. Government expenditure increased from 17.3
      percent to 20.7 percent of GDP between 2019 and 2020 and included the expansion of social services. The
      increase was also attributable to ongoing initiatives to expand universal health care, education, and access
      to water and electricity. Slow progress in efforts to mobilize domestic revenues continues to constrain the
      government’s ability to respond to shocks, with tax revenues remaining around 12 percent of GDP in recent
      years. Public debt rose steeply, from 41 percent of GDP in 2019 to 49.8 percent in 2020.
      2.       Although Côte d’Ivoire’s economy rebounded strongly from the COVID-19 pandemic in 2021, it
      faces headwinds from increased inflationary pressures and tightening international financial markets.
      Real GDP growth declined but remained positive at 2 percent in 2020 and recovered to 7 percent in 2021.
      Yet, the fiscal deficit and public debt increased over this period, by 2.8 and 4.5 percentage points of GDP.
      Inflation hit a 10-year high in 2021 because of supply chain disruptions and weather conditions. The impact
      of Russia’s invasion of Ukraine is putting additional strain on public finances. Côte d’Ivoire has tried to
      contain rising food and fuel prices through subsidies and price caps, the cost of which is estimated at nearly
      1 percent of GDP in 2022. For 2022, real economic growth is set to slow to 5.7 percent (2.8 percent per
      capita) but is expected to reach 6.7 percent in 2023-2025. Notwithstanding these heightened global
      uncertainties, the government is rolling out its long-term development plan.
      3.      Côte d’Ivoire aspires to reach upper-middle income status by 2030, which would require
      sustaining rapid economic growth. The government has set ambitious goals for the decade, including
      achieving emerging market status by 2030, which would entail doubling the country’s GDP per capita
      compared to its 2020 level of US$1,736. To achieve this and ensure a more inclusive economic growth, the
      National Development Plan (NDP) for 2021-2025 lays out the main guiding principles and strategic pillars
      of development, namely attracting more private investment and transforming the economy towards
      greater productivity and value-added, while ensuring regional equity and inclusion. It also sets the
      government’s development objectives including accelerating the economic transformation, reducing
      poverty and inequality, and improving governance. Côte d’Ivoire will have to improve domestic resource
      mobilization and enhance the business environment, as well as the efficiency and allocation of public
      spending in education, healthcare, and rural development.
      4.       Although poverty declined in Côte d’Ivoire between 2011 and 2019, the incidence remains high,
      and the 2022 Poverty Assessment reveals significant spatial disparities. Between 2011 and 2019, Côte
      d’Ivoire’s poverty rate declined from 55.3 to 39.4 percent; much higher than other lower middle-income
      countries where the average poverty rate was only 12.8 percent. Poverty reduction has been uneven across
      the country. Poverty declined rapidly in the regions along the eastern border with Ghana and in the south

      1According to the Macro Poverty Outlook consulted on October 2022, Côte d’Ivoire has been one of the fastest growing
      economies in Sub-Saharan Africa for almost a decade, with real GDP growth averaging 8.2 percent over 2012–2019 (5.7 percent in
      per capita terms).

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while living conditions have significantly worsened along the western border with Liberia and Guinea. 2 In
the north, 52.8 percent of the population is poor compared to 39.5 percent nationally.
5.       Côte d’Ivoire also faces rising regional insecurity risks stemming from the ongoing crisis in the
Sahel that could dampen the economic outlook. The number of violent attacks in Central Sahel has
increased eight times since 2015. Porous borders and intense migratory flows render containing this threat
to any country or area unlikely. In the last decade, terrorist groups have repeatedly assailed neighboring
Mali and Burkina Faso, and Côte d’Ivoire has suffered several terrorist attacks targeting security forces and
villages along these borders. Many living in proximity to these borders share history and participate in
shared local economies, and may have the same political grievances – social contexts which are highly
conducive to the spread of extremism and violence. The expansion of terrorism can be fostered by any
number of factors, including rising poverty, growing unemployment, marginalization, infrastructure and
basic services gaps, as well as a widespread perception that government disregards the needs and concerns
of communities. Regional disparities and the sense among poor communities that their interests are
unrepresented within government institutions can quickly become accelerants of escalating conflict, as can
land disputes. Insecurity in neighboring countries can destabilize the northern part of Côte d’Ivoire and
create additional fiscal pressures, as increased spending on security becomes even more necessary.
Programs to address these sources of vulnerability and fragility, and spillover risks from elsewhere in the
Sahel, warrant significant priority on the part of the government.
6.        Strengthening the government’s capacity to deliver effective and inclusive public services, and
supporting citizen engagement are paramount to enhance the social contract, as well as reinforce trust
between citizens and the state. Côte d’Ivoire has made important efforts to bolster its governance
framework through the establishment of accountability institutions and fighting against corruption.3
Nevertheless, further efforts are required to strengthen accountability in public financial management, as
well as to enhance access to and the quality of public services throughout the country, and foster citizen
engagement. Improving access to key public services such as education, health, transport, and electricity is
critical to improve the quality of life and create economic opportunities for citizens who otherwise rely on
more expensive and less climate-friendly alternatives. In this context, it is essential to consolidate efforts to
accelerate access to public services to all citizens, in particular to those located in lagging regions such as
northern and western Côte d’Ivoire. Strengthening the bargaining interface between the state and citizens,
and among citizens, could also create space to peacefully address the social breakdown. This could be
achieved by establishing and deepening citizen engagement in the definition, planning and implementation
of public policies and programs.
7.      In Côte d’Ivoire, climate change is expected to exacerbate the impacts of extreme weather events
and natural disasters, especially floods. In terms of vulnerability to climate change, Côte d’Ivoire ranks in
the bottom quintile compared to other lower middle-income countries, and it also scores relatively low in
terms of climate change readiness.4 Considering demographic growth and climate change projections, the
country’s high climate risk level is quickly escalating, mainly driven by vulnerability and the lack of coping

2 40 percent of the population in extreme poverty lives in the western regions. World Bank Group Côte d’Ivoire Country Partnership
Framework (CPF) for the period FY 23-27 (Report No. 179288)
3 Recent initiatives include the creation of a Ministry in charge of good governance and anti-corruption in 2021, the creation of the

digital platform System for the Prevention and Detection of Acts of Corruption and Assimilated Offenses in 2022, and the creation
of three supreme judicial institutions (i.e., Court of Auditors, Court of Cassation, and Council of State).
4 Chen, C., Noble, I., Hellmann, J., Coffee, J., Murillo, M., & Chawla, N. (2015). University of Notre Dame global adaptation index

country index technical report. ND-GAIN: South Bend, IN, USA

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      capacity.5 The semi-arid northern regions, including Savanes and Zanzan, are highly exposed to extreme
      heat events, which are likely to intensify given an anticipated rise in mean temperatures of up to 3°C by the
      end of the century under a Shared Socioeconomic Pathways 5-8.5 climate change scenario. At the same
      time, precipitation is projected to increase and become temporally more concentrated, making wet seasons
      wetter and dry seasons drier.6 Internal climate migration modelling indicates high levels of climate in-
      migration toward large secondary cities such as Korhogo and Man, which further increases their exposure
      and vulnerability to climate change.7
B. Sectoral and Institutional Context
      8.       Côte d’Ivoire is one of the most urbanized countries in sub-Saharan Africa, with 52 percent of its
      population residing in urban areas, compared to an average of 41 percent for the region .8 The country
      continues to urbanize rapidly, at a rate of approximately 3.4 percent a year. The share of the Ivoirian
      population living in cities is expected to reach 60 percent by 2025, and to exceed 70 percent by 2050. Côte
      d’Ivoire is also characterized by the economic dominance of Abidjan, which has an estimated population of
      5.6 million inhabitants, or 20 percent of the country’s total population and over 40 percent of its urban
      dwellers. 90 percent of the country’s formal enterprises are in Abidjan. With 550,000 inhabitants, Bouaké
      is the second largest city, followed by Daloa (270,000), Korhogo (375,000), Yamoussoukro (210,000), San
      Pédro (180,000), Gagnoa (170,000), Man (197,000), and many smaller cities. Abidjan, San Pédro, and
      Yamoussoukro are Côte d’Ivoire’s global connectors: Urban economies that are hubs of innovation,
      increasing returns to scale, and global competitiveness. The country also has six regional connectors, more
      localized urban economies that are essential centers of transport and regional trade, namely Bouaké and
      Korhogo (north corridor), Daloa and Man (west corridor), and Adzopé and Abengourou (east corridor).
      Around 20 other cities serve as domestic connectors, generating internal economies of scale that play a
      central role in realizing the agricultural potential of their respective regions.9
      9.      Boosting the development of Côte d’Ivoire’s secondary cities is critical to reduce poverty, promote
      shared prosperity, and help the country attain middle-income status. Sixty percent of Côte d’Ivoire’s urban
      population and 30 percent of its total population reside in secondary cities. Yet, while Abidjan is
      experiencing rapid urbanization accompanied by strong economic development, the same trend is not
      evident among secondary cities. The Autonomous District of Abidjan alone accounts for 80 percent of formal
      jobs and over 60 percent of the country's economic activity. By contrast, secondary cities have not been
      well-integrated into the national economy and fall significantly behind. This is of particular concern for
      secondary cities in the northern and western regions, where years of civil war, political unrest, and lack of
      investment in key infrastructure have kept cities and urban areas less efficient and prosperous. These
      regions are experiencing a higher incidence of poverty, a lower Human Development Index, limited
      economic opportunities, and increased fragility. 10 Access to education, life expectancy, food security, and
      gross domestic product per capita are all lower than the national average.11 Major constraints include years


      5 Côte d’Ivoire is among the 15 countries classified as “high risk” and where the risk level is quickly growing. Source: European
      Union (2022) INFORM Risk Index: Climate Change Tool. https://drmkc.jrc.ec.europa.eu/inform-index/INFORM-Climate-
      Change/INFORM-Climate-Change-Tool
      6 World Bank Climate Change Knowledge Portal: Côte d’Ivoire.
      7 World Bank (2021) Groundswell Africa: Internal Climate Migration in West African Countries
      8 United Nations Population Division. World Urbanization Prospects: 2018 Revision.
      9 World Bank (2015) Côte d’Ivoire Urbanization Review: Diversified Urbanization
      10 Almost 53 percent of the northern population is considered poor, compared with 39.4percent nationally
      11 Northern Côte d’Ivoire has on average up to 4.6 years of schooling, compared to 6.4 for the rest of the country



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of underinvestment in public infrastructure and basic services, limited access to finance, costly and unsafe
transportation, and insufficient local government capacity to plan and control urban and economic growth.
10.      Investing in green infrastructure and the sustainable development of Côte d’Ivoire’s secondary
cities is critical to reducing their carbon footprint. Most urban areas are heat islands: they have less
vegetation than natural landscapes, and have urban structures that absorb and re-emit solar heat. Urban
areas are also major greenhouse gas (GHG) emitters, and are responsible for around 70 percent of global
anthropogenic GHG emissions. Because they are still in an early stage of urbanization with low population
density, secondary cities in Côte d’Ivoire are in a unique position to minimize their carbon footprint as urban
development advances. 12 This will require sound urban planning to minimize urban sprawl, prevent the
removal of trees and vegetation, plant trees and greenery, create public parks, and encourage the adoption
of green building and infrastructure standards. Unique opportunities are available to secondary cities to
grow in ways that are climate-friendly and respectful of the environment. Existing public squares,
recreational areas, schools, and other facilities have often been constructed without adequate
consideration to green building design. They can be retrofitted or renovated to reduce their carbon
footprint. This is the case with many public schools that lack any form of vegetation.
11.      As Côte d’Ivoire’s secondary cities continue to grow, it is critical to increase their climate change
resilience. Small and medium cities are particularly vulnerable to extreme weather and climate change-
related natural hazards. This is, in part, due to the lack of sound planning, limited control exerted over urban
growth, and lack of investments in basic urban infrastructure. These often result in the informal occupation
of risk prone areas and other areas unsuitable for urbanization. The effects of climate change are expected
to differ throughout the country. In northern Côte d’Ivoire, climate change is anticipated to make rainfall
patterns more erratic and unpredictable, with longer dry periods, and more intense and extreme rainfall,
exacerbating flood risks.13 Secondary cities are particularly ill-prepared to cope with floods. While the
southern part of the country is more prone to floods and costal erosion, these events can also take place in
the north, such as in Korhogo in 2007. Vegetation, which plays a role in regulating the local hydrological
cycle, has been receding over decades, creating conditions for soil erosion and landslides. Temperatures in
Côte d’Ivoire are projected to increase by 3 °C by the end of the century, with more frequent heatwaves. 14
This poses serious risks for urban areas, where alternations between extended droughts and flood events
will lead to the faster deterioration of infrastructure and buildings. These alternating periods of drought and
extreme rainfall also threaten food security, rendering local agricultural economies more vulnerable to
shocks and undermining cities’ potential to serve as engines of growth. 15
12.    Secondary cities’ limited capacity to plan and regulate urban development and address
uncertainties regarding questions over land tenure has meant that urban spatial growth has substantially
exceeded investment in basic public services. Local governments often lack updated planning instruments,
and urban sprawl continues, with cities expanding into new “village subdivisions” – areas subdivided by
customary authorities, families, or individuals without necessarily following existing plans and regulations.
These subdivisions are generally delineated by land surveyors who should normally submit the plans for a

12 World Bank (2022) From Surviving to Thriving: Making Cities Green, Resilient, and Inclusive
13 Côte d’Ivoire is in a transition zone between humid equatorial climate to the southeast and drier tropical conditions to the north,
heavily influenced by the West African Monsoon, which brings moisture during the wet season, with recurring extreme rainfall episodes.
14 Côte d’Ivoire (2017) Troisième communication nationale à la Convention Cadre des Nations Unies sur les changements climatiques
15 Dodman, D. et al. (2022) Cities, Settlements and Key Infrastructure. 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. Cambridge
University Press, Cambridge, the United Kingdom.

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subdivision to local governments for approval before they are forwarded for final approval by the Ministry
of Construction, Housing, and Urban Development (Ministère de la Construction, du Logement et de
l’Urbanisme, MCLU). However, the commercialization and occupation of urban lots in village subdivisions
often precede any such formal approval, resulting in the creation of fragmented and poorly connected urban
areas that do not comply with regulations, and suffer from poor access to basic services and infrastructure.
So long as these land subdivisions are not regularized, their residents cannot obtain an Urban Land Title
(Arrêté de Concession Définitive, ACD), the legal proof of land ownership in urban areas. Residents may rely
on alternative mechanisms such as certificates issued by traditional and local authorities, but these
documents provide limited protection in case of disputed claims.
13.      Although there are differences in service provision between secondary cities, all require
significant investments in roads, drainage, and solid waste management. Secondary cities generally have
only a small part of their streets paved as investments have not kept up with the urban expansion. This
subsequently increases the cost of transportation and leaves cities more vulnerable to higher levels of
precipitation associated with climate change. In Korhogo, Côte d’Ivoire’s fourth largest city and the largest
city in the north, only 8 percent of the roads are paved, one-quarter of the city has public lighting, while 3
percent of the houses – i.e., in the city center – are legally provisioned with water, electricity, and roads. In
Odienné, 80 percent of the population has access to safe water, but this figure drops to 62 percent in
Korhogo and below 50 percent in Ouangolodougou. The absence of functioning drainage systems is another
source of concern, as these are critical infrastructure to control runoff water, prevent flooding, and protect
assets. Because most secondary cities lack sanitation and sewage infrastructure, untreated gray waters are
often discharged informally without being treated. Solid waste management is another matter requiring
urgent attention. Many secondary cities have neither efficient solid waste management collection systems
nor sanitary landfills. Garbage ends up in a multitude of unauthorized dumpsites without being treated and
with no opportunities for recycling, which stands in the way of achieving the 13-percent reduction in GHG
emissions from the solid waste management sector envisioned in Côte d’Ivoire’s 2022 Nationally
Determined Contributions (NDC).16 This applies to large secondary cities such as Korhogo, Ferkessédougou,
and Man as well.
14.     Secondary cities also require important investments in other key public infrastructure and
services, notably those related to education, health, and economic activities. Public school infrastructure
is a major determinant of the learning environment.17 Many public schools in urban areas are too
dilapidated, overcrowded, and poorly equipped to offer a safe or inclusive learning environment. In
secondary cities in the north public schools are often built on large parcels, and investments are urgently
required to build additional classrooms, canteens, latrines, leisure areas, and fences. Public schools lack
greenery and trees and do not meet environmental standards. Health infrastructure is likewise inadequately
equipped and severely overcrowded, while local urban health facilities are the primary sources of public
health services for local population. Maternity facilities, for instance, are sometimes used for both giving
birth and providing general health services, owing to a lack of physical space. Lastly, economic infrastructure
such as wholesale, retail and cattle markets play a key economic role and are a revenue source for local
governments. However, they are often overcrowded, and do not meet safety and health standards.
15.     Most secondary cities are heavily reliant on agriculture, and it is essential to support sustainable
practices, improve market infrastructure, and undertake activities aimed at transforming the sector. The

16   Côte d’Ivoire (2022). Contributions Déterminées au niveau National Côte d’Ivoire.
17   Barrett et al. (2019). The Impact of School Infrastructure on Learning: A Synthesis of the Evidence. Washington, DC. The World Bank.

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economies of secondary cities are dominated by the tertiary sector, with a focus on basic economic services
such as markets and banks. Economic activities in the industrial sector are very limited and formal
employment opportunities are scarce. Youths are caught between limited opportunities in rural areas and
informal urban activities.18 Women often work in food systems such as peri-urban vegetable production,
small-scale processing of agricultural products, and local trading and services. The potential for economic
transformation is limited or absent altogether, with activities limited to the production and
commercialization of raw products such as mangoes, cashews, and shea nuts. Market infrastructure is
limited and, where existent, is often inadequate, poorly maintained, overcrowded, and does not comply
with basic hygiene and security requirements.19 As a result, agricultural supply chains face serious
challenges. Most of Côte d’Ivoire’s secondary cities are unable to support the realization of the full
agricultural potential of their regions, and their role as regional and domestic connectors remains limited.
Unleashing secondary cities’ economic potential requires significant investments in market infrastructure
and local food systems.20
16.     While local governments have a significant part in supporting urban development and responding
effectively to citizens’ basic needs, their ability to do so is constrained by an incomplete decentralization
process, which left them with limited autonomy, financial resources, and human capacity. Since the 1980s,
Côte d’Ivoire has adopted a large body of laws and regulations on decentralization. For instance, Law
no.2003-208 of July 7, 2003, defines 16 areas of responsibility to be delegated to local governments,
including nursery and primary schools, health centers, roads and networks of communal interest, water
supply and sewage, waste pre-collection, as well as urban master plan and land use planning. However, the
adoption of this law was followed by years of civil and political conflict, and the responsibility for urban
development remained centralized within ministries and specialized agencies. In 2014, Côte d’Ivoire
adopted law 2014-451 on the general organization of the territorial administration, which specifies that
regions and local governments are the main agents of decentralization. This law details local governments’
missions, including ensuring the participation of populations in the management of local affairs; promoting
and implementing local development; improving living conditions; as well as land and environmental
management. These broad missions allow local governments to intervene in a large range of services, all
within the administrative purview of the Ministry of Interior and Security’s General Directorate for
Decentralization and Local Development (Direction Générale de la Décentralisation et du Développement
Local, DGDDL). Yet, the effective decentralization of public service delivery functions and authority to local
governments did not occur in practice. Ambiguities remain regarding the mandates of the subnational
governments; local governments’ capacity to generate their own revenues is limited; the transfers of
financial resources from the central to local governments are inadequate and sporadic; and local
governments are unable to recruit and retain staff with the required experience and skills. 21
17.     In view of Côte d’Ivoire’s limited decentralization, ministries and specialized agencies have
retained a central role in supporting urban development. The MCLU is responsible for preparing urban
master plans and detailed urban plans, formalizing urban subdivisions, and issuing ACDs. While local

18 Korhogo and Ferkessédougou, respectively 74 percent and 64 percent of 15- to 24-year-olds are unemployed.
19 Market infrastructure has only slowly changed in response to urban growth because they are hampered by major constraints such as
the lack of density, a large part of the population living in informal settlements, the lack of scale effects (i.e., cities are a collection of
neighborhoods having little connection to a coherent whole), and expensive living costs. It is estimated that the cost of living and doing
business in African cities is 30 percent higher than in other regions.
20 World Bank (2021) Côte d’Ivoire Northern Cities: Investing in Cities to Fight Fragility and Support Territorial Development.
21 Even large secondary cities have limited financial resources, 80 to 85 percent of which are used for payroll expenditures. This leaves

few resources available to invest in infrastructure and maintenance Secondary city budgets are typically between $1 and $7 per capita

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governments are responsible for local roads construction and maintenance, they usually can only afford to
build unpaved roads without sidewalks and drainage systems. Local governments rely on external support,
mainly from the Roads Management Agency (Agence de Gestion des Routes, AGEROUTE), which prioritizes
the national road network and main urban roads.22 Regarding drainage and sanitation infrastructure, these
are generally built by AGEROUTE or the National Office for Sanitation and Drainage ( Office National de
l’Assainissement et du Drainage, ONAD), while local governments focus primarily on cleaning road drainage
gutters. The National Waste Management Agency (Agence Nationale de Gestion des Déchets, ANAGED) is
responsible for solid waste management, which is normally contracted out to private firms. However,
ANAGED operates in a limited number of cities, and many secondary cities simply lack any structured solid
waste management systems. Regarding education infrastructure, the construction of schools is the
responsibility of the Ministry of National Education and Literacy which delegates maintenance to School
Management Committees comprising teachers and parents’ representatives. Local governments play an
advisory role in these committees. As for health infrastructure, local governments are responsible for
constructing local health centers, and they generally receive dedicated subsidies for this purpose. However,
the staffing and daily operation of these health centers fall under the Ministry of Health and Public Hygiene’s
(Ministère de la Santé et de l’Hygiène Publique) responsibility. Lastly, local governments are responsible for
building and maintaining markets, though large market infrastructure may involve the Ministry of Trade,
Industry and Promotion of Small and Medium Enterprises (Ministre du Commerce, de l'Industrie. et de la
Promotion des Petites et Moyennes Entreprises). Other key institutions involved in urban development
include the DGDDL; the National Environment Agency (Agence Nationale de l’Environnement, ANDE); the
National Office of Civil Status and Identification; and the Union of Cities and Communes of Côte d'Ivoire
(Union des Villes et Communes de Côte d’Ivoire, UVICOCI).
18.      In the north in particular, secondary cities have a vital role to play in addressing security concerns.
Much of this will consist of providing access to basic services and encouraging community participation
through more inclusive institutions. They also have an important role in facilitating and promoting job
creation. Cities in neighboring countries – including Sikasso in Mali; and Boucle du Mouhoun, Hauts-Bassins,
and Cascades in Burkina Faso – are experiencing structural fragilities which are likely to spread to Côte
d’Ivoire. Instability in Burkina Faso has led to a regrouping of the jihadist movements in northern Côte
d’Ivoire, particularly in the Comoé forest between Bouna and Ferkessédougou. Other vulnerable areas
include Tengréla near the border with Mali, and Ouangolodougou along the border with Burkina Faso.
Boundiali and Korhogo are vulnerable as well. The number of conflicts along the northern border with Mali
and Burkina Faso have increased significantly. Clashes between farmers and herders are also a source of
concern, particularly in the areas around Bouna. Northern Côte d’Ivoire is part of the Sahel’s Central
Transhumance Corridor, and has become a destination for stranded herders that is an important part of
their adaptation strategy. Over recent years, a variety of stressors, including some attributable to climate
change, have intensified competition over land and water resources in northern Côte d’Ivoire.
C. Relevance to Higher Level Objectives
19.     The Project will contribute to Côte d’Ivoire’s NDP 2021-2025, which aims to support the
development of productive, competitive, green, inclusive, and resilient cities. The NDP identifies the
development of secondary cities as a priority to improve economic opportunities for people living outside
of Abidjan. The plan seeks to balance regional development, support environmental preservation, and fight

22Observations made during project preparation show that between 5 and 15 percent of the urban roads are paved in the main
secondary cities of northern Côte d’Ivoire.

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against climate change. The Project will support the goals set in Côte d’Ivoire’s 2022 NDC to invest US$12
billion in adaptation measures, and to GHG emissions by 30.4 percent by 2030.
20.       The Project fits within the Main Pathways of the 2022 update of the Côte d’Ivoire Systematic
Country Diagnostic (SCD), which identifies untapped opportunities to use secondary cities to stimulate the
economies of rural areas through regional integration and territorial development. The Project’s focus on
urban agriculture is consistent with the priorities set under Main Pathway I: Improving agricultural
productivity and boosting rural development. The proposed investment in public educational and health
facilities will support Main Pathway III: Human capital development through better social spending.
21.     The Project is aligned with the World Bank Group Côte d’Ivoire Country Partnership Framework
(CPF) for the period FY23-27 (discussed by the Board of Executive Directors on February 2, 2023, Report
No. 179288). One of the objectives of the CPFs second High-Level Outcome is to support the development
of sustainable cities for inclusive growth. The CPF stresses the importance of supporting the sustainable
development of Côte d’Ivoire’s secondary cities to enable all regions to contribute to, and benefit from,
national economic progress. The CPF proposes a phased approach, starting with a limited number of cities
in the northern and western regions to counter the Sahel security crisis’ spillover effects.
22.     The Project will support the World Bank Group’s 2021-2025 Climate Change Action Plan in
contributing to Côte d’Ivoire’s efforts to develop, finance, and implement solutions for cities that reduce
emissions, build resilience, and promote shared prosperity. The Project is aligned with the Adapt-Connect-
Transform goals of the World Bank Group’s 2021-2025 Western and Central Africa Region Priority:
Supporting a Resilient Recovery, including Goal #4 Ramp Up Climate Resilience, which state that efforts
should focus on resilient green cities by enabling urban transition and transformation toward resilient low-
carbon growth and green technology. Project activities are intended to promote transformational and
sustainable impacts on communities, by prioritizing people-centered interventions that contribute to
making secondary cities, Green, Resilient, Inclusive, and more Competitive in accordance with the World
Bank’s Green, Resilient, and Inclusive Development (GRID) framework and goals.
23.      The Project will support the Sustainable Development Goal 11’s objective to make cities inclusive,
safe, resilient, and sustainable. Lastly, the Project builds upon the findings and recommendations of several
Advisory Services and Analytics (ASA), including the Côte d'Ivoire Urbanization Review: Diversified
Urbanization (World Bank, 2015, P147762), the ASA Côte d’Ivoire Northern Cities: Investing in Cities to
Fight Fragility and Support Territorial Development (World Bank, 2021, P175630), and the flagship report
From Surviving to Thriving: Making Cities Green, Resilient, and Inclusive (World Bank, 2022).
24.      The Project is aligned with the World Bank Group’s Global Crisis Response Framework (World
Bank, 2022). Under Component 1, most of the Project funds will finance investments in green and climate-
resilient urban infrastructure, which is consistent with Pillar 3’s objective to help strengthen resilience, while
support provided to urban agriculture planned under Subcomponent 2.3 will contribute to Pillar 1’s
objective to respond to food insecurity and protect the vulnerable. Subcomponents 2.1 and 2.2 are also
aligned with the objectives of Pillar 3.




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II.
   PROJECT DESCRIPTION
A. Project Development Objective
       25.     The Project Development Objectives (PDO) are to (i) improve access to green and climate resilient
       urban infrastructure and basic services; and (ii) strengthen local government capacity for participatory and
       climate risk-informed urban and economic planning in selected secondary cities.

       26.      The achievement of the PDO will be measured by four key results:

        -    People provided with improved urban living conditions23 (Number)
                 - People provided with improved urban living conditions - female (Number)
        -    Beneficiaries reporting that Project investments reflected their needs (Percentage)
                 - Female beneficiaries reporting that Project investments reflected their needs (Percentage)
        -    Local governments with new/updated climate risk-informed urban master plans prepared through a
             participatory process (Number)
        -    Local governments with new/updated local development plans prepared through a participatory
             process (Number)

B. Project Components

       27.       It was agreed with the Government that the Project will initially target eight secondary cities.
       Depending on future government priorities and the availability of funds, the Project may be extended to
       additional cities. The cities initially targeted are Bouna, Boundiali, Ferkessédougou, Korhogo, Man, Odienné,
       Ouangolodougou, and Tengréla. The selection of these cities follows the recommendations of the World
       Bank Group Côte d’Ivoire’s CPF (FY23-27) to adopt a phased approach, starting with a limited number of
       cities in the northern and western regions to counter the Sahel security crisis’ spillover effects. These regions
       were selected because they fall behind the rest of the country, including in terms of poverty, Human
       Development Index, and economic opportunities. The rationale for the Project’s strong focus on northern
       Côte d’Ivoire is that this region is directly affected by security and stability concerns along the borders with
       Burkina Faso and Mali. Korhogo, Ferkessédougou, Boundiali, Odienné, Tengréla, and Ouangolodougou are
       the largest cities in northern Côte d’Ivoire, with a combined population of 900,000. Their populations range
       from around 30,000 inhabitants in Bouna, to close to 375,000 inhabitants in Korhogo. While Bouna is the
       eleventh largest city in the north, it was selected because it is the largest urban center in the northeastern
       region of Bounkani, which borders Burkina Faso and Ghana, and is particularly affected by ongoing conflicts
       in the Sahel. Man is the largest city in western Côte d’Ivoire, with around 200,000 inhabitants. 24 It is a
       regional connector and an important center of transport and regional trade with Guinea and Liberia.
       28.       The Project aims to have a transformational impact on secondary cities, making them more
       inclusive, greener, and more resilient to climate change. Infrastructure and services need to be significantly
       upgraded to improve the living conditions of their populations, provide job opportunities, and leverage the
       cities’ role as drivers of economic growth. The proposed spatial approach consists in targeting specific areas
       such as city centers and selected poor neighborhoods to avoid lock-in effects of less dense, and fragmented

       23 This is a Corporate Result Indicator with a standardized name. However, this indicator measures the number of people benefiting from
       new or rehabilitated green and climate-resilient urban infrastructure financed under the Project.
       24 2021 census of Côte d’Ivoire’s National Institute of Statistics



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urban forms, which are raising the cost-of-service delivery, and are preventing cities from achieving
agglomeration economies. Scattered and fragmented cities also generate higher risks, energy consumption,
and transport induced GHG emissions. Therefore, the Project will help developing and densifying city
centers, upgrading access to the denser neighborhoods, improving soft mobility, developing access to public
facilities, and establishing well-functioning drainage and solid waste management systems. Incorporating
greening strategies and climate resilience into urban planning and infrastructure design is also paramount
in view of these cities’ vulnerability to climate change and its consequent impact on poverty.
29.       Proposed infrastructure investments can be grouped into three broad areas of intervention: (i)
Urban roads and public spaces: Well-connected street grids bring connectivity as well as access to jobs and
markets. However, only 5 to 15 percent of the cities’ roads are paved. The Project will finance the
construction or renovation of approximately 70 km of urban roads, representing about 3 percent of these
cities’ total road networks. The focus will be on improving all-weather access to city centers, dense areas,
key public facilities, and poor neighborhoods. Attention will be given to improving safety at accident-prone
intersections, soft transportation (sidewalks, bike lanes, etc.), and tree planting along roadsides to limit rain
flows and improve walkability; (ii) Drainage and solid waste management: The Project will finance urban
drainage and nature-based solution infrastructure. The focus will be on restoring, improving, and protecting
the drainage system’s capacity to increase resilience to floods. Priority will be given to lowlands to safeguard
and support urban agriculture, parks, and green belts to limit urban sprawl. In four cities, solid waste
management will complement these investments. (iii) Public facilities: The focus will be on the rehabilitation
and construction of public health, education, recreational, and economic facilities, such as primary,
secondary, and high schools; nurseries; local health centers; parks; squares; public markets; and cattle
markets.
30.      Project investments will encourage green, resilient, and compact urban growth. Investments in
nature-based solutions will be prioritized to support carbon sequestration, reduce the impact of natural
hazards (e.g., floods, droughts, landslides, and extreme heat), while improving the quality of life through
preserving and creating green spaces that provide shade and cool cities. Project investments in drainage
and integrated storm water management will be adopted where possible. The creation of green spaces
along canals, as well as the protection and restoration of existing green spaces that are deteriorated and
are threatened by encroachment, are key to help to retain water during storm events. Reforestation and
greening efforts will prioritize the use of indigenous species appropriate to the target regions. There will be
three levels of intervention. At the city level, the Project will help protect and restore green belts (e.g.,
Ferkessédougou and Odienné) and riverbanks. It will also support the creation of green corridors and the
protection of holly forests. At the neighborhood level, the Project will concentrate on the creation and
preservation of parks and squares, as well as improving and protecting urban agriculture areas. At the
infrastructure level, green designs will be of particular importance. For instance, the Project will finance
roadside greening, and tree planting in school yards and public squares. These measures are expected to
contribute to reducing the impact of heat waves, improving the quality of life, and positively affect public
health. The Project will also focus on energy efficiency, notably through investments in energy-efficient
street lighting, solar panels for public facilities, and energy efficient retrofits. Regarding investments in
school renovation and construction, architectural designs will reflect the bioclimatic plans that are being
developed by the Ministry of Education and Literacy, with the support of the French Development Agency
(Agence française de développement, AFD).
31.  Local governments identified a first series of priority investments, in close collaboration with local
communities and stakeholders, ministries, and specialized agencies . Consultations were initiated in 2021

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with the support of the Project Coordination Unit of the Urban Resilience and Solid Waste Management
Project (PARU, P168308) and resulted in a long list of over 800 investment proposals totaling over US$1.5
billion. This long list was established in a participatory manner, with local authorities and communities
partaking in the process. Proposals were screened and prioritized considering their relevance regarding the
PDO; number of beneficiaries; complexity; social and environmental impact; complementarity with
investments under other projects financed by the government and development partners; and, importantly,
overall transformational impact through spatial coherence and synergy. Available studies, plans, and
strategies were reviewed to ensure that the proposed investments are aligned with local, regional, and
national priorities. Public consultations were held to ensure that the investment proposals reflected the
priority needs of local communities and other stakeholders. As a result, a short list of proposed integrated
investments amounting to US$250 million was compiled, including urban roads; drainage, flood reduction,
and water infrastructure; education and health infrastructure; green spaces; solid waste management; and
economic infrastructure. This short list will be used to prepare a Priority Investment Plan (PIP) for each
target city, which may be adjusted from time to time in agreement with the implementing agency and the
World Bank.
32.      With most of the target cities located in the north, the Project is being designed to complement
a series of World Bank operations concentrating on northern Côte d’Ivoire. Investments in these
operations total over US$1 billion. They include the Gulf of Guinea Social Cohesion Project (P175043) and
the Northern Côte d’Ivoire Inclusive Connectivity and Rural Infrastructure Project (P178362); two
operations that target rural areas. The Northern Côte d’Ivoire Electricity and Digital Access Project
(P176776) and the Côte d'Ivoire Water Security and Sanitation Support Project (P177118, under
preparation) focus on improving the availability of water resources, and increasing access to electricity
and drinking water. The Secondary Cities Project will not finance any major investments in the electricity
and water sectors, though funds will be earmarked for possible social connections to increase access to
water in the target cities. The primary focus of the Secondary Cities Project will be inclusive and resilient
development in urban areas through investments in green and climate-resilient urban infrastructure (e.g.,
schools, health centers, recreational facilities, and markets, as well as roads, water, sanitation, drainage,
and solid waste management) and support to local governments in matters related to urban planning,
land administration, municipal services, infrastructure management, and local economic development.
These investments will complement those planned under other projects, notably the PARU (P168308), the
Côte d'Ivoire Urban Water Supply and Sanitation Project (P156739), and the Strengthening Primary
Education System Operation (P177800).25The Project will be structured around the following components:




25There is presently a shortfall of 16,000 classrooms to accommodate the students who are subject to compulsory education but
cannot attend school because of lack of space, while demographic trends suggest the need to build 3,000 new classrooms per
year. The Strengthening Primary Education System Operation plans to finance the construction of 3,000 new classrooms
throughout the country, and the Sustainable and Inclusive Secondary Cities Project will support the construction of around 500
additional classrooms.

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Component 1: Developing Green and Climate Resilient Urban infrastructure in Selected Secondary Cities
(US$250 million equivalent)
33.      This component focuses on priority green and climate-resilient infrastructure to improve urban
living conditions, promote local economic development, and foster social inclusion. These investments will
be coupled with implementation support and technical assistance for Operation and Maintenance under
Subcomponent 2.2. Greening strategies and climate resilience considerations will be embedded into all
infrastructure design to reduce the carbon footprint of cities and ensure resilience to climate-related
impacts.
Sub-component 1.1: Quick Impact Investments (US$40 million equivalent)
34.      This subcomponent will finance quick impact investments identified and selected in close
consultation with local governments and communities. The objective is to encourage citizen engagement
from project design to completion, while responding to the most pressing investment needs that do not
trigger negative social and environmental impacts, including physical or economic displacement. A first
batch of quick impact investments amounting to an estimated US$25 million were identified with the
municipalities and communities during Project preparation. They were screened for environmental and
social impacts and will be implemented as soon as the Project becomes effective. This first series of quick
impact investments includes improvements to existing facilities such as public schools, health centers,
maternities, dispensaries, stadiums, sports facilities, cultural centers, and youth centers. The Project will
finance the: (i) renovation and construction works such as fences, classrooms, canteens, gender-segregated
latrines, painting, maintenance of public buildings, and additions of energy efficient and climate-resilient
design features; (ii) purchase of goods for the renovated facilities and to support local associations
particularly women and youth associations; and (iii) tree planting, urban cleaning and anti-erosion
measures.
35.      Project funds will be earmarked for additional quick impact investments to be identified in
collaboration with local governments and local communities throughout implementation. This
subcomponent will encourage Project beneficiaries’ active participation. It will help develop ownership of
the Project investments, and encourage stakeholders to maintain them after completion – a vital
determinant of how sustainable these investments will ultimately be. This early engagement will also
strengthen the government’s presence in areas that have suffered from a lack of public investment.
Throughout Project implementation, the Project Coordination Unit (PCU) will carry out consultations with
local communities and local governments at least once a year. This will help enhance citizens feedback and
thereby interaction between the state and citizens, as well as deepening citizen engagement in the
definition, planning, and implementation of public policies and programs. Wherever possible, Non-
Government Organizations (NGOs) and Civil Society Organizations (CSOs) will be called upon to support local
communities in carrying out Project activities.
Subcomponent 1.2: Social and Economic Infrastructure (US$60 million equivalent)
36.      This subcomponent will focus on the renovation and construction of social and economic
infrastructure that is instrumental in fostering social cohesion, improving living standards, building climate
resilience, protecting existing vegetation, and promoting local economic development. A list of proposed
subprojects was identified during Project preparation with the support of local governments and
communities, as well as ministries and public agencies in charge of the planning and construction of public
social and economic infrastructure. Over 100 subprojects were proposed, amounting to around US$300


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million. They include among others: (i) construction and rehabilitation of health, education, and recreational
facilities, notably primary and secondary schools, vocational education centers, public libraries, cultural
centers, childcare centers, local health centers, maternities, and dispensaries; (ii) greening of public spaces;
(iii) creation and protection of green spaces and protected areas such as parks, forests, and riverbanks; and
(iv) investments in the rehabilitation and construction of economic infrastructure such as public markets,
cattle markets, and bus stations. The project will also support the implementing agencies and local
governments on how to design and build green and climate change-resilient social and economic
infrastructure.
Subcomponent 1.3. Roads, Sanitation, Solid Waste Management and Water Infrastructure (US$150 million
equivalent)
37.       This subcomponent will finance pressing investments needs in urban roads, sanitation, solid waste
management and water infrastructure. It will focus on medium and large-scale infrastructure that aims to
make cities greener, more livable and resilient, as well as support local food systems, while contributing to
their emergence as regional and domestic connectors. It will finance among others: (i) the rehabilitation or
construction of at about 70 km of urban roads to improve climate-resilient accessibility to social and
economic public facilities, economic zones, as well as to enhance living conditions in poor neighborhoods.
Urban road rehabilitation and construction will include sidewalks and pedestrian safety features, energy
efficient public lighting, and tree planting. This aims at making safer and more walkable cities, while
minimizing their carbon emissions and making them more resilient to climate-related shocks such as heavy
rainfall.26 (ii) Preparation of sanitation and drainage master plans and the construction of about 30 km of
stormwater channels and complementary Nature Based Solutions to reduce and manage floods. Boundiali
, Ferkessédougou, Korhogo and Odienné already have or are in the process of adopting Sanitation and
Drainage Master Plans, which will also be prepared for Bouna, Ouangolodougou, and Tengréla. (iii)
Preparation of Communal Solid Waste Management Plans, implementation of cleanup campaigns,
promotion of recycling and circular economy opportunities, establishment of solid waste management
services, and the first phase of construction of sanitary landfills in Bouna, Boundiali, Odienné and Tengréla.
No investments in solid waste management are planned in Ferkessédougou, Korhogo, or Ouangolodougou
because these cities are already covered by the PARU. The Project may also finance (iv) water network
extensions and social water connections contingent on the completion of new and rehabilitated water
supply infrastructure planned in these cities under the Water Security Program for Results (P177118).

Component 2: Providing Support to Local Governments in Selected Secondary Cities (US$30 million
equivalent)

38.     This component focuses on urban and economic planning, land administration, and strengthening
the capacity of local governments to plan and manage local development. Funds are earmarked for urban
agriculture to support local economic development.
Sub-component 2.1: Urban Planning, Land Administration, and Municipal Services Activities
(US$10 million equivalent)
39.    The subcomponent will finance (i) the update and preparation of green and climate-resilient urban
master plans and detailed urban plans. All target cities have Urban Master Plans that are outdated and do

26Côte d’Ivoire’s Road Management Agency, in consultation with local and regional authorities, identified 264 km of roads that need to
be rehabilitated or constructed in the target cities for a total of US$ 314 million.

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not adequately address green and climate-resilient concerns. The Project will finance the update of urban
master plans for Bouna, Boundiali, Ferkessédougou, Korhogo, and Odienné. For Man, Ouangolodougou and
Tengréla, new Urban Master Plans will be prepared as existing plans date from the 1980s. Master plans will
be prepared with the active participation of local governments and citizens, including women, youth and
vulnerable groups. Better planning capacity will help control urban growth with the aim to reduce the
carbon footprint of the target cities and help keep development out from areas prone to climate hazards.
This subcomponent will also support (ii) the regularization of urban subdivisions and land tenure, and
housing policies. The approach adopted to regularize urban subdivisions will foster citizen’s engagement,
favor flexible zoning approaches, acknowledge realities on the ground, and minimize involuntary
resettlement. Activities will include a review of Côte d’Ivoire’s experience in issuing urban land titles ( Arrêtés
de concession definitive), and feasibility studies on sites and services. The possibility of piloting systematic
urban land tenure regularization will be explored. If piloting of urban land tenure regularization proceeds,
then measures will be included in the process to ensure that women benefit. Such measures will include
sensitization and awareness raising on women’s land rights. The participation of women in the process and
the number of women with land tenure regularized will also be measured. Lastly, this subcomponent will
finance (iii) the establishment of Geomatics Units in selected target cities through office renovation,
acquisition of furniture, equipment and software, and data production. This activity will help local
governments access the knowledge and tools to carry out an inventory of their assets.
Sub-component 2.2: Capacity Development for Urban Management and Social Participation
(US$8 million equivalent)
40.      This subcomponent will strengthen local governments’ capacity to program, design, and manage
urban infrastructure investments planned under Component 1 through: (i) Hiring of municipal engineers
and urban development specialists to help plan and oversee Project activities and to strengthen local
governments’ capacity to plan in a participatory manner, oversee, operate and maintain urban
infrastructure; and (ii) Formulating and implementing annual training and technical assistance plans. These
plans will be prepared annually and may be updated as mutually agreed between the PCU and the World
Bank. They will address matters such as green and climate-resilient urban infrastructure, urban
infrastructure operations and maintenance programming, solid waste management and circular economy,
local economic development, urban planning, local tax administration, financial management,
procurement, as well as social and environmental safeguards.27 This subcomponent will also support citizens
engagement through (iii) Hiring community organizers and organization of citizens engagement activities.
Community organizers will be responsible for carrying out consultations and other activities to help local
communities engage in all aspects of project investments (e.g., needs assessment, investment planning,
participatory planning, social accountability, and operation and maintenance). This will include activities to
support youth mobilization, social inclusion, and social cohesion. Community organizers may be individual
consultants, NGOs, or CSOs. They will be contracted by the Project to cover specific geographic areas and
tasks (e.g., consultations, cultural and sports events to promote collaboration, team spirit, workshops; focus
group discussions; communication and awareness campaigns; and community clean up days).

Subcomponent 2.3: Local Economic Development (US$12 million equivalent)
41.    Activities under this subcomponent will include: (i) Sustainable development of local food systems
through a) infrastructure investments in market gardening areas, including the installation and/or

27   Matters related to social and environmental safeguards will include conflict resolution and Community-Based Early Warning Systems.

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rehabilitation of water mobilization infrastructure, storage units and marketing structures; and b) studies,
technical assistance, and training to help local producers integrate local and regional food systems (e.g.
support to producer organizations, food standards and certifications, development of strategic
partnerships); and (ii) Preparation of Local Development Plans and studies to support local economic
development and private sector participation. All of the target cities already support community groups,
job creation, small-scale business activities involved in urban service provision, and small-income generating
businesses. These studies will help them to optimize and enhance coordination between these initiatives,
as well as to better articulate joint initiatives between the local and the regional levels. They will provide
inputs for the preparation of Local Development Plans prepared under Subcomponent 2.1. A series of
studies will focus on the creation of Economic Activity Zones within the target cities.
Component 3: Project Management and Coordination (US$20 million equivalent)
42.      This component finances project management and coordination costs including: (i) staffing,
training, equipment, and operating costs for expanding the PARU PCU which will implement the Project.
The PCU is based in Abidjan and a Decentralized Project Implementation Office (DPIO) will be opened in
Korhogo to host the project team responsible for implementing the Sustainable and Inclusive Secondary
Cities Project; (ii) establishment of the Project monitoring and evaluation (M&E) system; (iii) development
and implementation of all Environmental and Social Framework (ESF) activities, including a Grievance
Redress Mechanism; and (iv) the implementation of campaigns for the sensitization of the public, citizen
engagement, communications, and knowledge exchange. The PCU responsibilities will include overall
project coordination, fiduciary, safeguards, M&E,28 preparation of audits (e.g., technical, financial, and ESF),
and reporting. The Korhogo office will be staffed with a DPIO Manager, a Civil Engineer, an Urban
Development Specialist, a Procurement Specialist, a Financial Management (FM) Specialist, a Social
Specialist, an Environmental Specialist, a M&E Specialist, and a gender and social inclusion specialist.
Safeguard Assistants and Municipal Engineers will support the implementation of and oversee compliance
with Project activities. They will also help strengthen local governments’ capacity for infrastructure planning
and management. Additional staff will be hired as needed. This component will finance the development of
an economic analysis using real-time, field-based data. This component may also support the preparation
of new operations.
43.     This component may also finance compensation for land acquisition, loss of assets and revenues,
and livelihood restoration. Per the Resettlement Policy Framework (RPF), resettlement costs are estimated
at US$6.4 million. However, the estimate will need to be refined and reconfirmed during implementation
once more details are available on all investments and locations. Provided that the World Bank is satisfied
by the methodology applied by the Borrower to estimate the reasonable cost of implementing the RAP and
the resulting estimated cost, the World Bank will process a formal request for authorization to use the funds
of the Credit to the financing of such costs. If the authorization is provided by the World Bank, a
corresponding reallocation of funds of the Credit among disbursement Categories will be processed as well.
Component 4: Contingent Emergency Response (US$0 million)
44.     A Contingent Emergency Response Component (CERC) is included in the Project structure pursuant
to World Bank Policy Investment Project Financing. The Borrower may request the reallocation of Project
funds to this component under the circumstances set forth under the World Bank Policy Investment Project


28   Including the tools and methods of the Geo-Enabling Initiative for Monitoring and Supervision (GEMS)

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Financing such as in case of (i) urgent need for assistance because of a natural or man-made disaster or
conflict; or (ii) capacity constraints related to fragility or specific vulnerabilities.
Corporate Commitments
Gender
45.      Urban infrastructure financed under the Project will be designed to reduce gender inequalities in
access to education, health, and economic opportunities. The 2022 SCD update underlines that women in
Côte d’Ivoire face constraints regarding access to education and high-quality maternal and reproductive
health care, good jobs, assets, voice, and political decision making. Project investments in the renovation
and construction of educational and health facilities will help close gender gaps in access to education and
health care. The installation of gender-segregated latrines, fences, and public lights in schools, health
centers and other locations is intended to increase public safety and to create a safer environment for
women. Women are expected to be the primary beneficiaries of the support provided to urban agriculture
under Subcomponent 2.3. Several project performance indicators will be disaggregated by sex and citizen
satisfaction surveys will provide additional data specifying whether the respondent is male or female. The
project’s results framework includes PDO-level indicators tracking the number of women provided with
improved urban living conditions, and the number of women beneficiaries reporting that project financed
investments reflected their needs.
46.      Gender gap in women’s economic empowerment. In 2019 the female labor force participation rate
was 44.6 percent compared to 62.6 percent for males. 80.4 percent of women were employed in jobs
classified as vulnerable compared to 61.5 percent for men. Just 22 percent of women owned a business
compared to 78 percent of men).29 Women’s activities are mostly based on agriculture, including local food-
crop farming and women-friendly value chains such as shea butter. Agriculture employs 42.9 percent of the
female workforce, followed by 31.6 percent in retail and 9.6 percent in domestic work.30 However, these
activities are constrained by persistent issues such as tediousness of artisanal transformation processes
(e.g., shea nuts into butter and other products), bad hygiene conditions, non-existent or poor work platform,
inadequate equipment, and lack of certifications and norms to integrate regional and international markets.
Thus women-owned microenterprises/associations are less productive than those owned by men, and this
decreases their income-earning opportunities.31 In Project areas, the shea butter value chain is a women-
led activity. Cooperative members are all women. To help address the gender gap in economic
empowerment, the project will undertake specific actions to improve women-led activities by purchasing
equipment, rehabilitating shea butter processing sites, improving access roads, and providing technical
assistance to help them have required certifications. The project will invest in market gardening area
improvement with specific facilities and infrastructure to improve accessibility, hygiene, sanitation, and
water supply. The project’s impact on women’s economic empowerment will be monitored using an
intermediate results indicator measuring the number of women certified to sell their shea butter
products.
47.     Gender gap in women’s access to maternal health facilities and services. Although some progress
has been made in the past years to close the "first generation" gaps in health, issues remain. Many urban
health facilities are overcrowded. Some maternity facilities are used for both childbirth and general health


29 World Bank gender data portal: https://genderdata.worldbank.org/countries/cote-d-ivoire
30 Kavita Kalsi and Dr Fofana Memon (2020) Women’s Economic Empowerment in Côte d'Ivoire. WOW Helpdesk Query 55.
31 World Bank (2021) Côte d’Ivoire Systematic Country Diagnostic Update: Countdown to 2030



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services, owing to a lack of space. Pregnant women do not always receive adequate attention because of
congestion in the maternity and lengthy waiting time. These factors contribute to Côte d’Ivoire’s high
maternal mortality rate. 617 women die per 100,000 live births due to pregnancy-related causes. A 2014
research article from the National Library of Medicine shows that the occurrence of any delay in obtaining
access to appropriate health care is associated with increasing severity of maternal outcomes: 52 percent
in potentially life-threatening conditions, 68.4 percent in maternal near-miss, and 84.1 percent in maternal
death.32 To address this gap in access to maternal health services , the project will rehabilitate and expand
existing health facilities – by adding dispensary to maternity and vice versa according to the situation- and
will provide adequate equipment to allow women to have dedicated buildings for maternity care. The
project’s impact on women’s access to health services will be monitored with an intermediate results
indicator measuring a reduction in the waiting time for women seeking maternal health services in new
or improved facilities.
Climate Change
48.       Improving climate resilience and adaptation. Climate and other environmental considerations are
incorporated into the design of all infrastructure investments planned in the Project. These include
investments in the renovation and construction of educational, health, recreational and commercial
facilities, most of which were constructed with limited attention environmental impact and climate change-
resilience. Public squares and other urban amenities are devoid of trees, while most roads are unpaved with
no sidewalks or trees. Similarly, most public schools lack vegetation, though trees help moderate
temperature and provide protection from the sun. This represents a missed opportunity to combat heat
islands while making these areas safer and more attractive to the public. Project investments in the
renovation and construction of urban infrastructure will focus on environmental sustainability and climate-
change resilience. Project investments in urban roads and drainage will also make the target cities more
resilient to climate change. These cities are all located in regions experiencing medium to high risk of river
floods. Urban flood hazard is high medium in Man and medium to low in other project locations.33 The
project will help target cities prepare for expected climate change impacts. Further, project’s investments
in land administration are expected to have a range of positive effects for climate adaptation, such as
enabling people to safely evacuate their land in case of disaster.
49.      Mitigating climate change. The project will finance investments in solid waste management in
Bouna, Boundiali, Tengréla and Odienné. An assessment of the GHG emissions resulting from these
investments has been carried out and shows a gross emission over a 10-year economic lifetime of 638,119 t
Co2 and a net emission of -199,997 t Co2. Project’s investments in solid waste management are aligned with
the priorities of Côte d'Ivoire’s National Hygiene Policy (2022-2026) and National Solid Waste Management
Program (2022-2026), which underline the importance of reducing the number of open dumping and
burning sites – the method commonly used in target cities to dispose of solid waste – and investing in
methane gas management systems to reduce GHG emissions. Access and collection roads will be
rehabilitated. This will help to improve trucks' fuel efficiency and optimize travel distances for solid waste
transport. Finally, all investments in infrastructure undertaken in the Project will address matters relating
to environment and climate-resilience. The Project will also help establish and preserve green areas within
and around the target cities. The World Bank has secured a Trust Fund under the Quality Infrastructure


32 Pacagnella et al. (2014) Delays in receiving obstetric care and poor maternal outcomes: results from a national multicenter cross-
sectional study. BMC Pregnancy Childbirth. May 5, 2014.
33 Thinkhazard (2022): https://thinkhazard.org/en/report/66-cote-d-ivoire/FL



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Investments partnership to implement the program Green and Resilient Cities for Northern Côte d’Ivoire.
The program is executed by the World Bank and supports the creation and dissemination of knowledge on
the design of green and climate-resilient urban infrastructure.
50.     Annex 3 provides further details on the project’s contribution to climate change adaptation and
mitigation.
Citizen Engagement
51.      The project will support citizen engagement at the local level to promote greater transparency and
accountability, as well as address perceptions of exclusion and strengthen social cohesion. Public
consultations were held early during Project preparation to allow the active participation of the civil society
in the selection of the proposed investments.34 During implementation, the PCU will carry out consultations
with local governments and communities at least once a year to ensure that the project meet their needs.
The PCU will give particular attention to the needs of women, the youth, and vulnerable groups. These
consultations will help ensure that citizens are engage and actively participate in the design and
maintenance of the infrastructure investments planned under Component 1. The civil society will also be
actively consulted and engaged in the preparation of the urban master plans Subcomponent 2.1 and local
economic development plans under Subcomponent 2,3. In each city, and for each plan, the PCU will ensure
that at least two public consultations are carried out. Further, under Subcomponent 2.2, the project will
recruit community organizers to carrying out consultations and other activities to help local communities
engage in project investments. Through these community organizers and the project’s grievance redress
mechanisms (GRM), the PCU will establish a real-time feedback mechanism that will help ensure that project
investments address their needs.
52.      The project’s institutional arrangements were designed with a focus on the active participation of
local governments and local communities. The project’s institutional arrangement will include the creation
of Local Advisory Committees (LAC) chaired by the mayors, and comprising representatives from the civil
society. The PCU, through the DPIO in Korhogo, will establish and maintain the project-level GRM. The DPIO
in Korhogo will also be responsible for carrying out information and public awareness campaign,
encouraging citizen engagement, and creating opportunities for knowledge exchange. The DPIO will be
responsible for collecting, recording, and reporting on inputs received from citizens, as well as ensuring
citizens’ participation in decision-making, and citizen-led monitoring and oversight.
53.     Under Sub-component 2.3, project funds will be allocated to support the preparation of urban and
local development plans, housing policies, and land tenure regularization. These activities will be carried out
through participatory and inclusive processes that foster citizen’s engagement, ensure equitable and non-
discriminatory access to land and housing (including women and people of foreign origin), favor flexible
zoning approaches based on existing realities on the ground and avoid as much as possible involuntary
resettlement. Participatory approaches, such as Urban Labs, are already showing encouraging results and
may be adapted and replicated with the support of the Project.35


34 For each sector involved, consultations have been done with the main beneficiaries – Teachers, directors and pupils parents’
representatives for education, merchants, drivers, small shop owners and head of commercial associations for economic facilities
– and municipal actors to ensure investments propositions are tailored to their needs and appropriate.
35 Urban Labs were tested in the Sahel (Ouagadougou) by the French Development Agency. This Urban Labs supports communities

in designing and testing urban micro-projects with social, cultural, and environmental impact. An urban operator, in partnership



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54.     The project’s Results Framework includes a PDO-level indicator to measure the percentage of
beneficiaries satisfied with the project financed investments , including the percentage of female
beneficiaries reporting that project financed investments reflected their needs. It also includes a
Intermediate Results Indicators measuring the number of consultations held to prepare or revise urban
master plans and local development plans, as well as the percentage of grievances recorded and addressed
within the GRM timeframes. Data for the PDO-level indicator on beneficiaries’ satisfaction will be collected
through beneficiary satisfaction surveys to be carried out at least every two years.
Readiness and sequencing
55.     Under Subcomponent 1.1, a first series of quick impact investments, amounting to US$25 million,
has been identified and screened during preparation. It is expected that related technical studies and
bidding documents will be finalized during Project preparation so that works can be contracted as soon as
the Project becomes effective. These initial quick impact investments include the renovation and equipment
of 83 primary schools, five secondary and high schools, as well as 18 local health centers. They also include
the renovation of public squares, recreational facilities, and minor roadworks.
56.     For investments planned under Subcomponent 1.2 and 1.3, the bidding documents for feasibility
and technical and safeguards studies are being prepared so a first series of contracts can be tendered as
soon as the project becomes effective. The plan is to launch works-related procurement processes at the
end of the first year and start works for an estimated US$165 million in the second year of project
implementation.
    (i) Urban roads. A mobility and technical feasibility study will be finalized during the first year of Project
        implementation. Over 250 km of priority roads have been identified, of which 70 km are expected
        to be covered by the Project for an estimated US$80 million. The study will determine which roads
        will be selected under the Project, provide recommendations on how to ensure that the proposed
        road designs are green and climate change-resilient, and provide the required technical inputs for
        the preparation of the bidding documents for road renovation works.
    (ii) Drainage. Investments in drainage amount to an estimated US$60 million. The contracts for the
         preparation of Sanitation and Drainage Master Plans for Bouna, Ouangolodougou and Tengréla will
         be launched shortly after project effectiveness. Since Korhogo, Ferkessédougou, Odienné, and
         Boundiali already have Sanitation and Drainage Master Plans, the contracts for the detailed
         technical studies will be launched during the first year of implementation. This activity will benefit
         from the nature-based solutions technical assistance contract that is being tendered under PARU.
    (iii) Solid waste management. The preparation of Communal Solid Waste Management Plans in
          Korhogo, Ferkessédougou and Ouangolodougou will be launched during the first year of Project
          implementation. PARU already supports the preparation of Communal Solid Waste Management
          Plans for other cities and will support the preparation of the bidding documents for the preparation
          of such plans in Korhogo, Ferkessédougou and Ouangolodougou.
57.      To avoid delays with project implementation, the hiring of the Deputy Project Coordinator, FM
Specialist, Procurement Specialist, Social Safeguards Specialist, Environment Safeguards Specialist, Civil
Engineer, and Urban Development Specialist have been initiated during Project preparation.

with local authorities, facilitates the identification and implementation of micro-projects, which may be temporary or eventually
upscaled. Projects can promote better use of unoccupied space during land-use studies or construction such as urban
improvements, development of new uses for renovated spaces such as sports trail or playgrounds in restored riverbanks.

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58.      Project funds under Component 1 amount to US$250 million to be allocated between cities as
shown in Table 2. Considering that the estimated population of these cities ranges from 30,000 for Bouna
and 350,000 for Korhogo, they will all receive a minimum of US$25 million, or a total of US$200 million
representing 80 percent of the US$250 million earmarked for Component 1. The rationale for these
minimum allocations is to have a transformational impact in all targeted cities, and in particular the smaller
ones as larger secondary cities tend to attract more investments. The remaining US$50 million will be
distributed based on the population of these cities. Per this methodology, cities will receive between
US$26.7 million for Bouna, and US$45.8 million for Korhogo. These funds will be split into a firm envelope,
allocated immediately, and an optional envelope, which will be confirmed at Project Mid-Term depending
on the progress and results achieved. To ensure that Project funds are used within the project timeframe,
the PCU will continuously monitor disbursement per city, and allocations may be adjusted as mutually
agreed between the implementing agency and the World Bank.

                                Table 1 – Summary of project costs by subcomponent
       Project Components                                                                                US$
                                                                                                      million
       Component 1: Developing Green and Climate Resilient Urban Infrastructure in Selected            250.0
       Secondary Cities
       Sub-component 1.1: Quick Impact Investments                                                       40.0
       Subcomponent 1.2: Social and Economic Infrastructure                                              60.0
       Subcomponent 1.3. Roads, Sanitation, Solid Waste Management and Water Infrastructure             150.0
       Component 2: Providing Support to Local Governments in Selected Secondary Cities                  30.0
       Sub-component 2.1: Urban planning, land administration, and municipal services                    10.0
       activities
       Sub-component 2.2: Capacity Development for urban management and social                              8.0
       participation
       Subcomponent 2.3: Local Economic Development                                                      12.0
       Component 3: Project Management and Coordination                                                  20.0
       Component 4: Contingent Emergency Response                                                         0.0
       Total                                                                                            300.0




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                                Table 2 – Proposed initial fund allocations per city for Component 1




                                                                                                 Ouangolo
                                                 Boundiali




                                                                                                             Tengréla
                                                                                      Odienné
                                                                         Korhogo
                                       Bouna




                                                              Ferké




                                                                                                                                        Total
                                                                                                                          Man
         City



         Population (INS 2021)       30,359     62,232       74,578    374,614       72,619     42,213      46,089      197,079     899,783
         Lum sump allocation
                                        25.0       25.0        25.0         25.0        25.0       25.0        25.0        25.0           200
         (80%)
         Pop based allocation
                                          1.7          3.5       4.1        20.8          4.0         2.3         2.6      11.0             50
         (20%)
         Total allocation               26.7       28.5        29.1         45.8        29.0       27.3        27.6        36.0           250
         Firm envelope (80%)            21.3       22.8        23.3         36.7        23.2       21.9        22.0        28.8           200
         Performance
                                                                                                                                            50
         envelope (20%)                   5.3          5.7       5.8           9.2        5.8         5.5         5.5        7.2

C. Project Beneficiaries

       59.      The project’s direct beneficiaries are the inhabitants of Bouna, Boundiali, Ferkessédougou, Korhogo,
       Man, Odienné, Ouangolodougou and Tengréla. The cumulated population of these cities amounts to close
       to 900,000 inhabitants, most of whom are expected to benefit directly or indirectly from the Project
       investments. Some of the larger-scale economic infrastructure such as markets, cattle markets and bus
       stations that will be renovated or constructed under the project are commonly used by most residents, as
       well as by people from surrounding areas. The same applies to some of the public spaces, green spaces, and
       other recreational facilities that will be renovated or constructed. Smaller infrastructure such as schools and
       local health centers are expected to benefit surrounding residents. Support to local entrepreneurship that
       will be provided under Subcomponent 2.3 is also expected to favor specific groups, notably women who are
       traditionally involved in urban agriculture. While it is difficult to accurately quantify the number of
       beneficiaries who will benefit from the Project’s infrastructure investments, a methodology will be
       developed to calculate the number of beneficiaries associated with each. The PCU will regularly report on
       the actual number of project beneficiaries through the Project’s M&E system. Lastly, the Project’s
       investments in civil works are expected to directly benefit the local construction industry and to create a
       significant number of temporary job opportunities in the construction sector.




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D. Results Chain
                                             Figure 1 Theory of Change/Results Chain




E. Rationale for World Bank Involvement and the Role of Partners
      60.     The World Bank is uniquely positioned to support the Government of Côte d’Ivoire’s efforts to
      promote the inclusive and sustainable development in secondary cities. The World Bank Group has been
      financing urban development projects since the 1970s and developed a diversified and extensive experience
      in supporting governments in sub-Saharan Africa and elsewhere in their efforts to address urban
      development challenges. The World Bank has been engaged in the urban sector in Côte d’Ivoire for decades,
      and is currently supporting five urban development projects amounting to over US$1.2 billion, including a
      growing portfolio of sector operations with investments in urban areas.36 This operational and analytical
      engagement allowed the World Bank to develop a thorough practical understanding of the challenges facing
      urban development in Côte d’Ivoire, and effective working partnerships with government institutions and
      development agencies.
      61.      The proposed Project activities are beyond the financing capacity of local governments and are
      directly related to the provision of public goods and services that tend not to be attractive to and could
      not be viably provided by the private sector. Many of the challenges facing secondary cities in Côte d’Ivoire

      36Urban Water Supply and Sanitation Project (P156739-), the Urban Resilience and Solid Waste Management Project (P168308),
      Infrastructure for Urban Development and competitiveness of second cities (P151324), Greater Abidjan port and city integration
      project (P159697), and the Abidjan Urban Mobility Project (P167401).

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      stem from a lack of public sector finance available to invest in basic services. The COVID-19 outbreak further
      complicates an already fragile economic outlook, stresses the Government’s revenues, and constrains its
      ability to invest in basic infrastructure and services—and the poor stand to be hit particularly hard. In the
      prevailing fiscal context, any resources the World Bank can offer are needed to improve key public sector
      services and priority investments targeted to the poorest and most affected populations. This will ultimately
      support preparatory work to help mobilize private capital and assist to improve capacity within agencies
      involved in these areas
      62.     The government of Côte d’Ivoire and the World Bank have reached out to development partners
      involved in urban development during project preparation, establishing a technical platform that includes
      representatives from the United States Agency for International Development (USAID), European Union,
      Suisse Cooperation, Japan International Cooperation Agency, and will expand to include representatives
      from the AFD, the West African Development Bank (Banque Ouest-Africaine de Développement, BOAD), the
      African Development Bank, and others.
F. Lessons Learned and Reflected in the Project Design
      63.     Project design reflects lessons learned from recent urban development projects in Côte d’Ivoire
      and in fragile and low-capacity environments. (i) While a multisectoral approach to urban development is
      key to achieving transformative results, project design should remain simple, focused, and include well-
      linked components. (ii) In multisectoral projects, it is important to ensure that implementation is not
      hampered by complex decision-making processes, conflicting interests, or diverging views from the various
      stakeholders. It is also key to rely on trusted implementing entities and to ensure that the responsibilities
      of the institutions involved in project implementation are clearly defined. (iii) Phasing investments and
      ensuring that the initial set of activities can be implemented as soon as the project becomes effective is
      essential to foster citizen engagement and allow for early disbursements. (iv) Project investments should
      foster genuine involvement of local governments and communities in the selection and implementation
      oversight of project activities to ensure social cohesion and greater ownership and sustainability of
      investments. (v) Projects should support activities to encourage the participation of vulnerable groups such
      as women, youth, and minorities. (vi) Large-scale investments in urban infrastructure should be associated
      with adequate technical assistance, and with supporting measures in terms of management and
      maintenance of facilities. (vii) When planning project investments, try to utilize labor intensive approaches
      to basic infrastructure and services to help create jobs for youth and develop their skills. (viii) In conflict-
      prone and polarized communities, it is paramount to create opportunities for dialogue among community
      leaders to help minimize and address disputes. (ix) In a rapidly changing and unpredictable environment,
      project design and implementation arrangements need to be flexible enough to adapt to the evolving
      context and allow for rapid response to emerging needs.37




      37These operations include the Côte d’Ivoire Municipal Support Project (P037575), Côte d’Ivoire Emergency Urban infrastructure
      (P110020), Côte d’Ivoire Emergency Infrastructure Renewal Project (P124715), Côte d’Ivoire Infrastructure for Urban
      Development and Competitiveness of second cities (P151324), Mali Reconstruction and Economic Recovery Project (P144442),
      Cameroon Inclusive and Resilient Cities Development Project (P156210), and Togo Infrastructure and Urban Development Project
      (P161772).

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III. IMPLEMENTATION ARRANGEMENTS
A. Institutional and Implementation Arrangements
      64.      The Ministry of Water and Sanitation (Ministère de l’Hydraulique, de l’Assainissement et de la
      Salubrité, MINHAS) will implement the project through the PCU. The core project team will be based in
      the DPIO in Korhogo, with a liaison office in Abidjan. The PCU will be responsible for all aspects of project
      management, including fiduciary functions, audits, M&E, and compliance with the ESF. The DPIO will be
      staffed with a Manager, a Procurement Specialist, an FM Specialist, an Accountant, an M&E Specialist, an
      Environmental Safeguard Specialist, a Social Safeguard Specialist, a Sexual Exploitation and Abuse/Sexual
      Harassment (SEA/SH) Specialist, a Civil Engineer, and an Urban Development Specialist. The DPIO manager
      will report to the PCU Project Coordinator. The Project will also hire Safeguard Assistants and Municipal
      Engineers to support Project implementation and oversee compliance of Project activities. Technical experts
      will be hired as needed, and are expected to include specialists in matters related to urban development,
      urban planning, urban infrastructure, solid waste management, land administration, geospatial information,
      and agriculture.
      65.      Ministries and specialized agencies will provide design and implementation support to the PCU
      within the framework of their technical mandates. The role and responsibilities of each party will be
      defined in project implementation support framework agreements to be signed with the PCU prior to
      project effectiveness. It is expected that framework agreements will be signed between the PCU and the (i)
      MCLU for the activities related to urban planning, the regularization of urban subdivisions and urban land
      tenure regularization under Subcomponent 2.1; (ii) AGEROUTE for the rehabilitation and construction of
      urban roads under Subcomponent 1.3; (iii) ONAD for activities related to sanitation and drainage under
      Subcomponent 1.3; (iv) ANAGED for activities related to Solid waste management under Subcomponent
      1.3; (v) Ministry of National Education and Literacy for investments related to educational facilities under
      Subcomponents 1.1 and 1.2; and (vi) Ministry of Health and Public Hygiene for investments related to health
      under Subcomponents 1.1 and 1.2.
      66.      Local governments in secondary cities will sign project implementation support framework
      agreements with the PCU. Local governments are responsible for developing investment proposals
      (including Priority Investment Plans) in close collaboration with local communities, LACs, ministries,
      specialized agencies, and the PCU. They are also responsible for supporting the implementation of the
      project activities, as well as operating and maintaining the urban infrastructure that fall under their
      responsibility. The project will hire Municipal Engineers and Safeguards Assistants to help plan and oversee
      Project activities, and will be responsible for strengthening local governments' capacity through training and
      technical assistance. Depending on the capacity and needs of local governments, the project may hire
      additional experts on relevant technical matters.
      67.     The Prime Minister’s Office will establish and chair an Inter-Ministerial Steering Committee (ISC)
      comprising representatives from the ministries and specialized agencies involved in the implementation of
      the Project activities. The ISC will provide overall project supervision and strategic guidance.
      68.    In each city, local governments will establish a LAC chaired by the mayor, and comprising
      representatives from relevant municipal departments, decentralized government services, and civil




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      society.38 LACs have a key role in preparing and approving Priority Investment Plans, overseeing project
      implementation, and encouraging the participation of civil society, in particular women and the youth.
      69.      Activities to be financed under the Project will be defined in Priority Investment Plans developed
      by local governments in close collaboration with the PCU, ministries and specialized agencies. In each city,
      prior to initiating project activities planned under Subcomponents 1.2 and 1.3, the LAC shall advise on the
      Priority Investment Plan in form, substance and manner acceptable to the Association. These plans will
      cover the project duration, and may be updated from time to time in agreement with the LAC, PCU and the
      World Bank.
      70.         Annex 1 provides further details on the project’s implementations arrangements.




B. Results Monitoring and Evaluation Arrangements
      71.      The PCU will be responsible for the project’s Results M&E. The DPIO will be staffed with a full time
      M&E specialist who will: (i) collect, consolidate, and report on Project performance, including physical and
      financial progress; and (ii) provide periodic information on the Project indicators included in the Project
      Results Framework and progress toward outcomes. The PCU will submit quarterly reports to the World Bank
      within 45 days of the end of each reporting period. Capacity building will be provided as needed to
      strengthen the PCU’s ability to carry out M&E. A methodology is being developed to calculate the number
      of beneficiaries associated with the project investments in green and climate-change resilient urban
      infrastructure, including education, health, recreational, economic facilities, urban roads, drainage, and
      sanitary landfills. All indicators will be sex-disaggregated to the extent possible. The project’s M&E specialist
      will work in close collaboration with PCU staff, local governments in the target cities, as well as partner
      ministries and agencies to monitor the number of individuals benefiting from the project investments. The

      38   E.g., women’s and youth organizations, community-based organizations, and nongovernmental organizations

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       Project will use the World Bank’s Geo-Enabling initiative for Monitoring and Supervision (GEMS), which
       provides platforms for remote supervision, real-time risk monitoring, and portfolio mapping for
       coordination across projects and partners. In-depth evaluations will be conducted for the Project Mid-Term
       review and for the close of Project.
C. Sustainability
       72.     World Bank experience with urban development projects points to the need for post-project
       operation and maintenance of the constructed or rehabilitated infrastructure. Over 80 percent of the
       project funds are expected to be invested in green and climate-change resilient urban infrastructure,
       notably in the construction of about 70 km urban roads, 30 km of stormwater channels, and initial
       investments in four sanitary landfills. Investments also include the construction and rehabilitation of over
       200 public facilities such as schools, vocational education centers, libraries, squares, recreational centers,
       local health centers, dispensaries, markets, and cattle markets. To ensure the sustainability of these
       investments, the project includes Subcomponent 2.2 Capacity Development for Urban Management and
       Social Participation with a focus on strengthening local governments’ capacity to program, operate, and
       maintain urban infrastructure. Support will be provided through technical assistance, training, and the
       development of strategies and plans for operations and maintenance. The project will finance the hiring of
       Municipal Engineers whose responsibilities will include strengthening local governments’ capacity to
       manage urban infrastructure falling under their responsibility. The maintenance of large infrastructure such
       as urban roads, stormwater channels, and sanitary landfills, will be carried out with the support of the
       relevant ministries and national agencies (e.g., AGEROUTE, ONAD, and ANAGED).


IV. PROJECT APPRAISAL SUMMARY


A. Economic Analysis
       73.       An economic analysis was conducted to confirm the economic feasibility and rationale of the
       proposed infrastructure investments in roads, solid waste management, drainage, sanitation, health,
       education, and urban agriculture. These investments are expected to bring significant socioeconomic
       benefits by, among others, (i) improving mobility through a reduction of travel time and upgrading road
       conditions, all-weather proofing for climate resilience, and flood control; (ii) strengthening human capital;
       (iii) reducing vector-diseases incidence; and (iv) improving sanitary conditions. In the medium term, the
       project will improve living conditions and social cohesion in the targeted cities.
       74.      Given the lack of granular data, a cost-benefit analysis was conducted for investments planned in
       urban roads and solid waste management, and is presented in the following two paragraphs. The analysis
       is conservative and only considers the estimated direct beneficiaries of these investments. For roads, the
       analysis considers data for vehicle operating expenses and time saves due to road improvement, and
       determines a value for accidents (deaths, injuries, and associated costs) avoided. For solid waste
       management, benefits from prevented damage and destruction of buildings due to improved flood
       protection, and reduced disease rates (prevented sickness, death, and associated costs) are the primary
       data factors used for analysis. For the other investments such those related drainage, education, sanitation,
       health, urban agriculture, and economic facilities, the methodology adopted is based on benefit-to-cost
       ratios, net present values and Economic Internal Rate of Returns (EIRR) from similar investments in cities in
       other countries from Sub-Saharan Africa, as well as from projects in northern Côte d’Ivoire and the Gulf of

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      Guinea Northern Regions Social Cohesion Project. Annex 2 provides additional details on the results of the
      economic analysis across all sectors.
      75.      Urban roads. Alongside the benefits derived from improved road safety, and reduced travel time
      and vehicle operating expenses, the improved connectivity from new and upgraded roads cities bring wider
      benefits associated with improved spatial integration. These include raised economic activity due to
      increased connectivity and trade, which in turn have impacts on economic growth and spending power of
      individuals. The Project is expected to finance a total of 70 km of urban roads for an estimated cost of
      US$83.8 million, including studies, supervision, and works. Maintenance costs are assumed to be 1 percent
      of the investments based on the reality and context in the field. In terms of benefits, vehicle operations,
      travel time and accident reduction costs have been quantified. For a discount rate of 6 percent, the
      economic analysis shows a Net Present Value (NPV) of US$208.04 million and an EIRR of 17 percent.
      Sensitivity tests have confirmed the robustness of the analysis: (i) an increase of 10 percent of the
      investment costs shows a NPV of US$200.1 million and an EIRR of 15 percent; and (ii) a decrease of 20
      percent of benefits shows a NPV of US$166.4 million and an EIRR of 17 percent.
      76.     Solid waste management. More effective solid waste management, especially the construction of
      sanitary landfills, has the benefits of reduced emissions due to better disposal of waste, reduction in flooding
      due to less waste blocking both natural and manmade storm water channels, and reductions in disease such
      as malaria, diarrhea, and typhoid. The project is expected to finance sanitary landfills in four cities.
      Investments costs have been associated with maintenance costs amounting to 1 percent of the investments
      costs over a 20-year economic period). Flood control, given the close link between a controlled chain
      management of waste with a good performing stormwater system, malaria incidence reduction, and CO2
      emissions costs have been estimated for the analysis. High and Low Shadow Carbon Price have been used.
                              Table 3 – Solid waste management: Results of the Economic analysis
       Description                                      EIRR (%)            NPV (US$ million) at 6%
                                          Shadow Price of Carbon- Low
       Base                                             18                  26.3
       Sensitivity test: +10% on investments costs      17                  25.6
       Sensitivity test: -20% on benefits               18                  21.1
                                          Shadow Price of Carbon-High
       Base                                             24                  41.2
       Sensitivity test: +10% on investments costs      23                  40.4
       Sensitivity test: -20% on benefits               24                  32.9


       B. Fiduciary

(i)   Financial Management
      77. The PCU within MINHAS will be responsible for maintaining FM arrangements that are acceptable to
      the World Bank and for providing reasonable assurance that the proceeds of the World Bank loan are used
      for the intended purpose.
      78. MINHAS is currently implementing PARU, which is funded by a EUR 287.7 million credit from the
      World Bank. An FM assessment of the PCU was completed in September 2022 in accordance with the FM
      Manual for World Bank-Financed Investment Operations effective on March 1, 2010, and reissued on
      February 10, 2017, and the supporting guidelines. The assessment focused on the following aspects of the

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PCU: planning and budgeting, financial accounting, financial reporting, and internal controls and external
auditing that are needed to satisfy the World Bank’s Policy and Directive – Investment Project Financing
(IPF), which describes the overall FM policies and procedures. The implementing entities’ arrangements are
found to be acceptable if they are capable of: (i) recording all budgets and transactions and balances
correctly; (ii) supporting the preparation of regular and reliable financial statements; (iii) safeguarding the
entities’ assets; and (iv) are subject to auditing arrangements acceptable to the World Bank. The FM
assessment covered the PCU in accordance with the FM Manual for World Bank IPF Operations that became
effective on March 1, 2010, and was re-issued on February 10, 2017
79. The FM assessment determined that the PCU is familiar with the World Bank FM requirements and is
satisfactorily managing PARU. The current FM staffing, which includes the assignment to the Project of one
financial controller and one public accountant (Agent comptable du projet) from the Ministry of Finance, is
adequate. The PCU staff consists of one FM specialist and two Accountants who are experienced in the
implementation of World Bank-financed projects. There were no major FM issues raised during the PARU
supervision missions or by the auditors. There are no overdue audit reports or unaudited Interim Financial
Reports (IFRs). The FM performance of the PCU was recently rated Satisfactory. The PARU’s compliance was
deemed satisfactory for financial requirements including timely submission of unaudited IFRs, proper
bookkeeping, and appropriate banking arrangement. In sum, the FM arrangements meet the minimum
fiduciary requirements under the FM Manual for World Bank for IPF.
80. The financial management capacity of the PCU will be strengthened by: (i) updating the PARU FM
procedures manual; and (ii) updating the configuration of the existing accounting software, train the users,
and ensure that the Integrated Financial Management Information System and Integrated Accounting
Computerized Network are well implemented. (iii) In line with the Use of Country Systems stipulated in Côte
d’Ivoire decree n° 475 governing donor-financed projects, a financial controller, and a public accountant
(both from the Ministry of Finance and Budget), already assigned to the PCU, will manage the transactions
of the Sustainable and Inclusive Secondary Cities Project. (iv)The project internal audit function will be
managed by the General Inspectorate of Finance (Inspection Générale des Finances) in collaboration with
the Internal auditor of PCU. (v) the PCU will be required to submit to the World Bank (a) a consolidated
annual work plan and budget (AWPB) not later than November 30 of the year preceding the year the AWPB
will be executed; (b) consolidated quarterly unaudited IFRs; and (c) consolidated audited annual financial
statements (e.g., audit reports prepared by independent external auditors) not later than June 30 of each
year.
81. The Project’s annual accounts will be audited by an independent external auditor to be recruited in
compliance with Terms of Reference (ToRs) acceptable to the World Bank.
82. The overall FM residual risk rating for the Project is assessed as Moderate . Based on the mitigation
measures outlined above, the proposed financial management arrangements for this project are considered
adequate to meet the World Bank’s minimum financial management requirements under the FM Manual
for World Bank IPF. Detailed FM arrangements are provided in Annex 1.
(ii)    Procurement
83. Project procurement activities will be carried out in accordance with the World Bank Procurement
Regulations for IPF Borrowers (dated November 2020); the Guidelines on Preventing and Combating Fraud
and Corruption in Projects Financed by International Bank for Reconstruction and Development (IBRD)
Loans and International Development Association (IDA) Credits and Grants (dated October 15, 2006, and


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revised in January 2011 and as of July 1, 2016); and the provisions stipulated in the Financing Agreement.
84. Côte d’Ivoire adopted Procurement Code (Order N°2019-679 dated July 24, 2019) and Decree n°475
dated July 1, 2015, in line with the West African Economic and Monetary Union (WAEMU)’s procurement
Directives and international good practices, along with key implementing regulations and documentation.
An electronic system for collecting and disseminating procurement information and for monitoring
procurement statistics has been set up and needs to be mainstreamed in the work of all contracting
authorities.
85. The publication of procurement notices including the General Procurement Notices (GPN) and Specific
Procurement Notices (SPN) will be in line with paragraphs 5.22, 5.23, and 5.24 of the World Bank
Procurement Regulations. A GPN should be published on the United Nations Development Business and
World Bank’s external website as soon as the project is approved. SPN Requests for Expression of Interest
and results of the evaluation and contracts award should be published in accordance with advertising
provisions in the World Bank Procurement Regulations.
86. Approaching the international market (international competitive procurement) is appropriate when
the participation of foreign firms will increase competition and may assure the achievement of best Value
for Money and fit-for-purpose results. Open international competitive procurement, for which international
advertisement is required in accordance with Procurement Regulations, is the preferred approach for
complex, high-risk, and/or high-value contracts. The World Bank has set specific thresholds for this purpose.
87. A PPSD and a Procurement Plan for the project’s first 18 months were prepared by the Borrower and
approved by the World Bank on March 3, 2023. A qualified consultant was recruited to help the PCU to
perform this operation. The PPSD identified optimum procurement strategies for meeting the PDO, and the
Procurement Plan sets the selection methods. Per the PPSD, the total amount of contracts to be awarded
under the Project is estimated at approximately US$254.3 million for more than200 procurement processes
to be conducted. Contracts related to the works represent 79 percent of the credit amount to be allocated
to all the contracts; consultancy contracts represent about 16 percent, and those relating to supplies 5
percent. All contracts to be awarded will represent at least 84 percent of the amount of project financing.
Further, the PPSD recommends strengthening the procurement capacity of the PCU with at least one Senior
Procurement Specialist, two Procurement Specialists, and additional specialists and assistants as needed.
88. There may be situations where direct procurement from United Nations (UN) agencies may be the
most appropriate method. In such circumstances, the project would make specific arrangements with the
respective UN agencies through a single-source selection; in turn, the UN agencies would then follow their
own procurement procedures to purchase and deliver the goods and services needed.
89. Project implementation will be entrusted to the PCU along with the associated fiduciary
responsibilities (procurement and FM). A capacity assessment of the PCU was carried out with a focus on (i)
the person in charge of the procurement process; (ii) the procedure manual; and (iii) the expertise of PCU
in terms of the procurement process. The assessment has shown that while the PCU has the required
experience, skills, and knowledge, the procurement personnel is limited. The procedure manual fits with
World Bank standards for timely project implementation.
90. Person in charge of procurement. The assessment revealed that the PCU has a procurement specialist
who is familiar with and was recently trained on World Bank procurement procedures. The procurement
specialist received training on the new procurement framework, specifically on the PPSD, and has been
trained on contract management. Per the new procurement framework, the procurement specialist is


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       responsible for the Project’s contract management. The procedures need to be adapted to reflect these
       changes.
       91. Procedures manual. Given the PCU’s current involvement in the implementation of a World Bank
       financed- project, there is an established procedures manual in place that is aligned with World Bank
       requirements. However, that manual should be updated to meet the requirements of the new project.
       92. Expertise of the PCU in terms of procurement procedures. Despite the PCU’s experience in World Bank
       FM and procurement procedures, the assessment shows that the quality of the procurement documents
       and contract management could be improved.
       93. To minimize the risks identified and ensure that the Sustainable and Inclusive Secondary Cities Project
       is implemented as per the World Bank standards, at least one Procurement Specialist and one Procurement
       Assistant should be dedicated to the new operation. The Terms of Reference, qualifications, and experience
       of the appointed specialists will be reviewed by the World Bank. If the specialists are recruited, the selection
       should be done through a competitive process according to national procedures. As the DPIO is expected to
       be in Korhogo, an organization chart will confirm which of the procurement specialist or the assistant will
       be in Abidjan or in Korhogo.

.C. Legal Operational Policies
.
                                                                                        Triggered?
Projects on International Waterways OP 7.50                                              Yes
Projects in Disputed Areas OP 7.60                                                       No
.

       94.      OP 7.50 is applicable to this Project because the Project will finance activities that may use or risk
       polluting waters of the Sassandra, Comoé, Niger, and Volta rivers and/or their tributaries, which are
       considered international waterways. The exception to the riparian notification requirement according to
       paragraph 7(a) of the Policy applies because activities are limited to upgrading and modernization of
       existing, small-scale schemes which will not appreciably impact quality or quantity of water flows to other
       riparians. The exception according to paragraph 7(b) of the Policy also applies and accordingly, the terms of
       reference for the sanitation and drainage master plans will consider an examination of any potential riparian
       issues as required by the Policy. The exception to the notification requirement was approved by the Regional
       Vice President on December 23, 2022.
D. Environmental and Social

       95.     The project’s environmental and social risk classification is considered Substantial owing to the risks
       associated with the proposed investments in urban infrastructure, namely the renovation and construction
       of health, education and recreational facilities, markets, cattle markets, urban roads, stormwater channels,
       and sanitary landfills. There are also risks associated with the project’s investments in planning, notably the
       preparation of Urban Master Plans, Sanitation and Drainage Master Plans, and Communal Solid Waste
       Management Plans. Possible environmental and social impacts include labor influx, employment
       expectations, and working conditions; stakeholder engagement and communication (e.g., exclusion of
       certain groups); displacement (economic and physical); waste management and pollution; nuisance and
       road traffic safety; community health and safety, including SEA/ SH, and road safety); and potential impacts


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      on natural habitats. To manage these risks, the Government of Côte d’Ivoire adopted the following
      safeguards instruments: an Environmental and Social Management Framework (ESMF) disclosed on January
      12, 2023 in-country and January 24, 2023 on the World Bank website, a RPF disclosed on January 12, 2023
      in-country and January 16, 2023 on the World Bank website, a Stakeholder Engagement Plan (SEP) disclosed
      on December 14, 2022 in-country and December 24, 2022 on the World Bank website, and a Labor
      Management Procedures (LMP) disclosed on December 14, 2022 in-country and January 16, 2023 on the
      World Bank website. The instruments were redisclosed to reflect changes in project implementation
      arrangements. However, the original disclosure dates are the ones mentioned in the Environmental and
      Social Commitment Plan (ESCP). An ESCP was disclosed on March 9, 2023, both in-country and on the World
      Bank website. A SEA/SH assessment and action plan will be prepared and disclosed no later than 120 days
      after project effectiveness. Further, the PCU will be staffed with an Environment Specialist, a Social
      Specialist, a SEA/SH specialist, while safeguards assistants will be placed in target cities. All project activities
      will be subject to the relevant ESF requirements. Resettlement impacts cannot be precisely determined at
      this stage, though per the RFP resettlement costs are not expected to exceed US$6.4 million.

V. GRIEVANCE REDRESS SERVICES

      96.     Communities and individuals that believe they are adversely affected by a World Bank supported
      project may submit complaints to existing project-level grievance redress mechanisms or the World Bank’s
      Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in
      order to address project-related concerns. Project affected communities and individuals may submit their
      complaint to the World Bank’s independent Inspection Panel which determines whether harm occurred,
      or could occur, as a result of World Bank non-compliance with its policies and procedures. Complaints may
      be submitted at any time after concerns have been brought directly to the World Bank's attention, and
      World Bank Management has been given an opportunity to respond. For information on how to submit
      complaints to the World Bank’s corporate GRS, please visit http://www.worldbank.org/en/projects-
      operations/products-and-services/grievance-redress-service. For information on how to submit
      complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org.


VI.    KEY RISKS

      97.    The overall risk rating of the project is Substantial because of the risks associated with the political
      and governance context, technical design, institutional capacity, fiduciary, environmental and social
      impacts, and security concerns in some of the areas targeted by the project.
      98.     Political and governance risk is rated Substantial. Grievances between communities from the South
      and the North of Côte d’Ivoire have fueled violent conflicts as recently as ten years ago. Some of those
      tensions remain and could be revived during upcoming elections. In the past year, the Government has been
      taking concrete steps to foster a process of national. Transparency and decentralization in the governance
      system are not fully achieved, which may negatively impact project investments and cause delays with
      procurement. The political and governance risk will be mitigated with increased population involvement
      and greater devolution. The project will monitor stakeholder engagement to ensure that Project
      implementation is inclusive and responsive to community feedback.
      99.    Technical design of project risk is rated Substantial. The Project technical design is relatively
      complex given its ambitious objectives and the range of activities and investments across several secondary

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cities. The World Bank has a wealth of expertise on the approaches and technologies proposed in the
different sectors. The World Bank has mobilized Trust Fund resources to support the creation and
dissemination of knowledge on the design of green and climate resilient urban infrastructure. Technical
design of project risk will be mitigated by (i) ensuing that the PCU is adequality staffed; (ii) consolidating
investments to reduce transaction costs; (iii) engaging relevant ministries and specialized agencies; (iii)
consulting with relevant sectors (e.g., health, education, and agriculture) to ensure coordination of
investments and the saucerful operation and maintenance of infrastructure beyond construction or
renovation; and (iv) providing strong and continuous capacity development and technical assistance to
project stakeholders. The detailed sequencing of activities was reviewed during project Appraisal and found
to be realistic.
100. Institutional capacity for implementation and sustainability risk is rated Substantial . While
government institutions have a good record in implementing multisectoral projects, the following risks are
associated with this operation: (i) lack of coordination between institutions at the central and local levels
could delay project implementation; (ii) government’s limited capacity to prepare quality studies,
particularly for more complex activities, could lead to long reviews and implementation delays; and (iii) the
location of the PCU in Korhogo could create coordination challenges with the central level. As mitigation
measures, the Project will be implemented under the guidance of the Prime Minister’s Office, which is in a
unique position to ensure coordination between relevant line ministries and specialized agencies. The PCU
will be vested with strong decision-making authority and technical capacity, with a focus on limiting
dependency on other government entities. Dialogue with local governments, line ministries and specialized
agencies began early during project preparation. The Project will be implemented by the PCU, which will be
strengthened and received additional training in procurement, FM, ESF, project management, and M&E.
Strong technical assistance will be provided throughout the project duration.
101. Fiduciary risk is rated substantial. This is due to the procurement risk that is substantial because
of (i) the potential influence of local authorities and/or politicians in local procurement and (ii) the
number and geographic dispersion of the project's target cities. These risks are being mitigated by
anchoring the Project within an existing PCU that that is familiar with the World Bank FM and procurement
requirements, and is satisfactorily managing PARU. A Decentralized project Implementation Office will be
created and located in the North to allow better coordination. A new procedure manual will be elaborated
and adopted for the Project. This procedure manual will include processes for pre-selection and
procurement at the local level that specify the roles and responsibilities of the actors, including the Local
Authorities. Fiduciary capacity of the PCU will be strengthened through the hiring of additional FM and
Procurement staff, some of which will based locally.
102. Environmental and social risks are substantial. These include soil and water pollution, vegetation
clearing, biodiversity loss, workers’ health and safety, community safety, SEA/SH, and economic
displacement. Because the Project targets some areas facing increasing insecurity, the ability to implement
and supervise project activities may be restricted. In addition, the capacity of local governments is limited,
especially with respect to implementing safeguard instruments as per the World Bank’s ESF. The
environmental and social risk rating also considers the varying capacities of the implementing partners and
direct third-party implementation institutions to manage potential risks, particularly under the new ESF
requirements. The environmental and social risk management instruments entail robust mitigation
measures that have been developed and disclosed. The ESCP outlines a series of capacity building and
institutional strengthening activities for PCU staff to undertake during project implementation.



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        103. Security risks are Substantial. Though stable at the time of Project preparation, the security
        situation could become a challenge, making it difficult to carry out Project activities in certain areas. Seven
        of the target cities are in Northern Côte d’Ivoire where violent extremism, community and socio-political
        conflicts, and conventional and cross-border crime could threaten project implementation. These cities are
        in five regions that are part of the 11 regions covered by the Côte d’Ivoire Inclusive Connectivity and Rural
        Infrastructure Project (P178362), namely Kabadougou (Odienné), Bagoué (Boundiali and Tengréla), Poro
        (Korhogo), Tchologo (Ferkessédougou and Ouangolodougou), and Bounkani (Bouna). A security risk
        assessment was conducted in June 2022 under the Côte d’Ivoire Inclusive Connectivity and Rural
        Infrastructure Project (P178362).39 The assessment concludes that the risk of violent extremism40 is very
        high in the Bounkani region and high in the Poro, Tchologo, and Bagoué regions. Even though no new attack
        has been reported since 2021, the security situation in some areas of northern Côte d’Ivoire remains fragile.
        The Government has deployed additional security forces in these areas and strengthened his intelligence
        cooperation with neighboring Mali and Burkina Faso. Nevertheless, the situation in some areas remains
        unstable and volatile, and security risks remains Substantial. While the project will rely on the 2022 security
        risk assessment of the Inclusive Connectivity and Rural Infrastructure Project, a project specific Security
        Management Plan will be adopted prior to implementing activities. Preventive measures will be included in
        the works contracts to protect physical infrastructure and mitigate risks exposure for workers. The PCU and
        the World Bank will continuously monitor security risks during project implementation and additional
        measures could be adopted to ensure the security of the works.41
    .
.




        39 Evaluation des Risques Sécuritaires (ERS) - Rapport Provisoire, July 2022.
        40 These risks include armed attack by jihadist groups on sites or project members or partners, kidnapping of project members or
        partners, assassination of project members, and destruction and/or looting of a project sites, structure, and equipment.
        41 Relevant experiences include the road projects in Far-North Cameroon (CEMAC, P079736). These additional measures may

        include the use third-party verification in case security conditions do not allow direct supervision.

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                                                                                 VII.   RESULTS FRAMEWORK AND MONITORING



                                                                                                Results Framework
                                                                                              COUNTRY: Cote d'Ivoire
                                                                                 Sustainable and Inclusive Secondary Cities Project

Project Development Objectives(s)
The Development Objective is to (i) improve access to green and climate resilient urban infrastructure and basic services, and (ii) strengthen local
government capacity for participatory and climate risk-informed urban and economic planning in selected secondary cities

Project Development Objective Indicators
RESULT_FRAME_TBL_ PD O




                                Indicator Name                      PBC    Baseline                                     Intermediate Targets   End Target
                                                                                                                 1
Improve access to green and climate resilient infrastructure and basic services

People provided with improved urban living
                                                                          0.00                                  100,000.00                     390,000.00
conditions (CRI, Number)

                   People provided with improved urban living
                                                                          0.00                                  50,000.00                      195,000.00
                   conditions - Female (Number)

Beneficiaries reporting that Project investments
                                                                          0.00                                  75.00                          75.00
reflected their needs (Percentage)

                   Female beneficiaries reporting that Project
                                                                          0.00                                  75.00                          75.00
                   investments reflected their needs (Percentage)

Strengthen local gov. capacity for participatory and climate risk-informed urban & economic planning

Local governments with new/updated climate
risk-informed urban master plans prepared                                 0.00                                  3.00                           8.00
through a participatory process (Number)



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RESULT_FRAME_TBL_ PD O




                                Indicator Name               PBC    Baseline                              Intermediate Targets    End Target
                                                                                                  1
Local governments with new/updated local
development plans prepared through a                               0.00                          3.00                             8.00
participatory process (Number)

  PDO Table SPACE


Intermediate Results Indicators by Components
RESULT_FRAME_TBL_ IO




                                Indicator Name               PBC    Baseline                              Intermediate Targets    End Target
                                                                                                  1
Component 1:Developing Green and Climate Resilient Urban infrastructure in Selected Secondary Cities
Quick Impact Investments completed (Number)                        0.00                          60.00                           94.00
Social infrastructure rehabilitated or constructed
                                                                   0.00                          20.00                           46.00
(Number)
Economic infrastructure rehabilitated or
                                                                   0.00                          8.00                            15.00
constructed (Number)
Green areas developed or rehabilitated (Text)                      0.00                          4 hectares                      8 hectares
Urban roads rehabilitated or constructed
                                                                   0.00                          30.00                           70.00
(Kilometers)
Communal sanitation and drainage master plans
                                                                   4.00                          6.00                            8.00
adopted (Number)
Stormwater channels rehabilitated or constructed
(Kilometers)                                                       0.00                          10.00                           30.00

Sanitary landfills with methane emission
capture/combustion technology constructed                          0.00                          0.00                            3.00
(Number)
Waiting time for women seeking maternal health
services (Text)                                                    To be established             Baseline - 10% (in minutes)     Baseline - 20% (in minutes)




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RESULT_FRAME_TBL_ IO




                              Indicator Name                  PBC    Baseline                    Intermediate Targets    End Target
                                                                                         1
Communal solid waste management plans
adopted (Number)                                                    0.00                3.00                            3.00

Component 2: Providing Support to Local Governments in Selected Secondary Cities
Public consultations organized for the preparation
of local economic development plans and urban                       0.00                16.00                           32.00
masterplans (Number)
Local governments with an infrastructure
operation and maintenance strategy (Number)                         0.00                2.00                            8.00

Project financed infrastructure are functioning,
used, and maintenaned (Yes/No)                                      No                  Yes                             Yes

People trained (Number)                                             0.00                200.00                          400.00
                   People trained (of which women) (Number)         0.00                100.00                          200.00
Cities with operational Geographic Information
                                                                    0.00                1.00                            4.00
System (GIS) capacity (Number)
Improved market gardening areas with increased
                                                                    0.00                20.00                           150.00
operations (Hectare(Ha))
Women with improved capacity to produce and
                                                                    To be established   Baseline + 10%                  Baseline + 20%
sell their shea butter products (Text)
Component 3: Project Management and Coordination
Project related grievances received and addressed
                                                                    0.00                80.00                           80.00
within the project GRM timeframe (Percentage)
  IO Table SPACE

  UL Table SPACE




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                                                       Monitoring & Evaluation Plan: PDO Indicators
                                                                                                      Methodology for Data Responsibility for Data
Indicator Name                            Definition/Description      Frequency      Datasource
                                                                                                      Collection                 Collection
                                                                                                      This is a Corporate
                                                                                                      Result Indicator with a
                                                                                                      standardized name.
                                                                                                      However, this indicator
                                                                                                      measures the number
                                                                                                      of people benefiting
                                                                                                      from new or
                                                                                                      rehabilitated green and
                                                                                                      climate-resilient urban
                                                                                     Detailed
                                                                                                      infrastructure financed
                                                                                     design
                                                                                                      under the project
                                                                                     studies,
                                                                                                      This indicator measures
                                                                                     infrastructur
                                                                                                      the number of direct
                                                                                     e works
People provided with improved urban                                   Semi-annual                     beneficiaries from the     PCU
                                                                                     completion,
living conditions                                                                                     following new or
                                                                                     reports,
                                                                                                      rehabilitated green and
                                                                                     surveys
                                                                                                      climate-
                                                                                     and evaluatio
                                                                                                      resilient urban infrastru
                                                                                     n studies.
                                                                                                      ctures: 1) Urban Roads;
                                                                                                      2) Health facilities; 3)
                                                                                                      Educational facilities; 4)
                                                                                                      Public spaces; 5)
                                                                                                      Markets; 6) Solid waste
                                                                                                      management; 7) Storm
                                                                                                      water channels and
                                                                                                      complementary Nature
                                                                                                      Based Solutions.
                                                                                                      Beneficiaries will be


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                                                                                              estimated for each type
                                                                                              of intervention type,
                                                                                              either through access
                                                                                              metrics (number of
                                                                                              people within the
                                                                                              distance within which
                                                                                              residents benefits from
                                                                                              the infrastructure (for
                                                                                              instance 500m for
                                                                                              secondary roads) or
                                                                                              registration/usage
                                                                                              metrics (for instance for
                                                                                              health center and
                                                                                              school)
                                                                                              The detailed
                                                                                              methodology for data
                                                                                              collection will be
                                                                                              defined in the Project
                                                                                              Implementation
                                                                                              Manual.

                                                                              Detailed        This indicator measures
                                                                              design          the number of direct
                                                                              studies,        beneficiaries from the
                                    Number of women                           infrastructur   following new or
                                    beneficiaries of improved                 e works         rehabilitated green and
People provided with improved urban                             Semi-annual                                              PCU
                                    climate-resilient urban                   completion,     resilient
living conditions - Female
                                    infrastructure                            reports,        urban infrastructures:
                                                                              surveys         1) Urban Roads; 2)
                                                                              and evaluatio   Health facilities; 3)
                                                                              n studies.      Educational facilities; 4)
                                                                                              Public spaces; 5)

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                                                                                                  Markets; 6) Solid waste
                                                                                                  management; 7) Storm
                                                                                                  water channels and
                                                                                                  complementary Nature
                                                                                                  Based Solutions.
                                                                                                  Beneficiaries, adjusted
                                                                                                  with census data on
                                                                                                  gender, will be
                                                                                                  estimated for each
                                                                                                  intervention type.
                                                                                                  Access metrics (number
                                                                                                  of people within the
                                                                                                  distance within which
                                                                                                  residents benefits from
                                                                                                  the infrastructure, (for
                                                                                                  instance 500m for
                                                                                                  secondary roads) will
                                                                                                  be calculated by type of
                                                                                                  investment using
                                                                                                  spatial analysis.
                                                                                                  The detailed
                                                                                                  methodology for data
                                                                                                  collection will be
                                                                                                  defined in the Project
                                                                                                  Implementation
                                                                                                  Manual.

                                           Percentage of direct                                   Aggregation of survey
                                           beneficiaries reporting that            Satisfaction   response from service
Beneficiaries reporting that Project                                      Annual                                             PCU
                                           they are satisfied with the             surveys.       providers (and
investments reflected their needs
                                           project financed                                       preventing double
                                           investments.                                           counting of

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                                                                                                        beneficiaries)

   Female beneficiaries reporting that
   Project investments reflected their
   needs
                                                                                                        Confirm the extent of
                                                                                                        the participatory
                                                                                                        process used to
                                         Number of local
                                                                                                        elaborate the plans in
                                         governments with a new or                     Urban
Local governments with new/updated                                                                      the final reports, and
                                         an updated climate risk-       Semi-annual    master plan                                   PCU
climate risk-informed urban master plans                                                                the integration of data
                                         informed urban master                         final reports
prepared through a participatory process                                                                on climate-risk in the
                                         plans prepared through
                                                                                                        plan, and obtain official
                                         participatory processes.
                                                                                                        signed adoption
                                                                                                        documents

                                          Number of local                                               Confirm the extent of
                                          governments that prepared                    Local            the stakeholder
Local governments with new/updated        or updated their local                       economic         consultation done in
                                                                     Semi-annual                                                     PCU
local development plans prepared          development plans with                       development      the final reports and
through a participatory process           extensive stakeholder                        final reports    obtain official signed
                                          consultation and community                                    adoption documents.
                                          participation.
ME PDO Table SPACE


                                               Monitoring & Evaluation Plan: Intermediate Results Indicators
                                                                                                       Methodology for Data         Responsibility for Data
Indicator Name                            Definition/Description        Frequency     Datasource
                                                                                                       Collection                   Collection
                                          Number of quick impact        Semi-         Contractor       Target is based on the
                                                                                                                                    PCU, Municipalities
Quick Impact Investments completed        investment projects           annual        reports          list of Quick Impact
                                          identified and validated in                 (Works           Investments screened

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                                           collaboration with the                   completion   in collaboration with
                                           participating cities/                    reports)     the participating cities/
                                           municipalities with active                            municipalities with
                                           community participation                               active community
                                           and completed.                                        participation
                                                                                                 Data from progress
                                                                                                 reports

                                           Number of social
                                           infrastructure rehabilitated
                                           or constructed across all
                                           cities including health and              Contractor
                                           education facilities, notably            reports
                                                                           Semi-
Social infrastructure rehabilitated or     primary and secondary                    (Works       Progress reports            PCU, Municipalities
                                                                           annual
constructed                                schools, vocational                      completion
                                           education centers, public                reports)
                                           libraries, cultural centers,
                                           childcare centers, local
                                           health centers, maternity
                                           wards, and dispensaries
                                                                                    Contractor
                                           Number of economic
                                                                                    reports
                                           infrastructure rehabilitated    Semi-
Economic infrastructure rehabilitated or                                            (Works       Progress reports            PCU, Municipalities
                                           or constructed for example      annual
constructed                                                                         completion
                                           public markets, cattle
                                                                                    reports)
                                           markets, and bus stations
                                           Total area (in hectares)                 Contractor
                                           across all municipalities for            reports
                                                                           Semi-
                                           the creation and protection              (Works       Progress reports            PCU, Municipalities
Green areas developed or rehabilitated                                     annual
                                           of green spaces such as                  completion
                                           parks, forests, and                      reports)
                                           riverbanks, greening of

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                                           public building courtyard,
                                           and other nature-based
                                           solutions for flood, and heat
                                           island management.
                                           Length of urban roads (in
                                           km) rehabilitated or                     Contractor
                                           constructed to improve                   reports
                                                                           Semi-
                                           accessibility to social and              (Works       Progress reports   PCU, Municipalities
Urban roads rehabilitated or constructed                                   annual
                                           economic public facilities,              completion
                                           economic zones, as well as               reports)
                                           to improve living conditions
                                           in poor neighborhoods
                                           Number of communal
                                           sanitation and drainage
                                           master plans adopted.
                                           Korhogo, Ferkessédougou,
                                           Odienné, and Boundiali
                                                                                    Consultant                      PCU, Municipalities
Communal sanitation and drainage           already have or are in the      Anual                 Progress reports
                                                                                    reports
master plans adopted                       process of adopting
                                           Sanitation and Drainage
                                           Master Plans, which will also
                                           be prepared for Bouna,
                                           Ouangolodougou, Tengréla,
                                           and Man.
                                           Length of stormwater                     Contractor
                                           channels (in km)                         reports
                                                                           Semi-
Stormwater channels rehabilitated or       rehabilitated or constructed             (Works       Progress reports   PCU, Municipalities
                                                                           annual
constructed                                as well as complementary                 completion
                                           nature based solutions to                reports)
                                           reduce and manage floods.
Sanitary landfills with methane emission   Number of sanitary landfills    Annual   Contractor   PCU
capture/combustion technology              with methane emission                    reports

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constructed                             capture/combustion                     (Works
                                        technology constructed, and            completion
                                        related solid waste                    reports)
                                        management services
                                        operational in Odienné,
                                        Boundiali, Tengréla and
                                        Bouna
                                        Waiting time for women                 Beneficiary
                                                                    Semi-
Waiting time for women seeking maternal seeking maternal health                Satisfaction    Progress reports   PCU
                                                                    annual
health services                         services                               Survey

                                       Number of communal solid
                                       waste management plans
                                       adopted, along with
                                       implementation of cleanup               Consultant
                                       campaigns, promotion of                 reports, and
                                       recycling and circular                  documents
Communal solid waste management plans                                 Annual                   Progress reports   PCU, Municipalities
                                       economy opportunities. No               for the
adopted
                                       investments in solid waste              adoption of
                                       management are planned in               the plans
                                       Korhogo, Ferkessédougou
                                       and Ouangolodougou
                                       because these cities are
                                       already covered by PARU
                                       Number of public                        Reports from
                                       consultations held for the              consultants,
Public consultations organized for the preparation of the                      including
                                                                      Semi-
preparation of local economic          new/updated local                       specific        Progress reports   PCU, Municipalities
                                                                      annual
development plans and urban            development plans and                   sections on
masterplans                            urban master plans. In each             public
                                       target city, at least 4 public          participation
                                       consultations have been                 and

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                                           organized, or a total of 32              stakeholder
                                           consultations.                           consultation
                                                                                    processes.

                                                                                    Consultant
                                           Number of cities which                   reports,
                                           adopt and implement urban Semi-          consultation
Local governments with an infrastructure                                                            Progress reports   PCU, Municipalities
                                           infrastructure operations annual         of
operation and maintenance strategy
                                           and maintenance strategy                 participating
                                           and plans                                cities

Project financed infrastructure are
functioning, used, and maintenaned
                                           Number of people trained in
                                           local economic
                                           development, urban
                                           planning, operations and
                                                                                    Training
                                           maintenance of municipal
                                                                           Semi-    reports, and
                                           assets, procurement,                                     Progress reports   PCU, Municipalities
People trained                                                             annual   attendance
                                           financial and human
                                                                                    lists
                                           resources management, or
                                           other topics as needed and
                                           defined in the respective
                                           capacity building chapters of
                                           the city investment plans.
                                           Number of people trained in
                                           local economic                           Training
                                           development, urban              Semi-    reports, and
                                                                                                    Progress reports   Municipalities, and PCU
   People trained (of which women)         planning, operations and        annual   attendance
                                           maintenance of municipal                 lists.
                                           assets, procurement,
                                           financial and human

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                                           resources management, or
                                           other topics as needed and
                                           defined in the respective
                                           capacity building chapters of
                                           the city investment plans.
                                                                                    Training
                                           Number of established GIS                reports,
                                           capacity at selected                     consultant
                                           municipalities with effective            reports,
                                                                         Semi-
Cities with operational Geographic         operationalization, including            consultation     Progress reports   PCU, Municipalities
                                                                         annual
Information System (GIS) capacity          trained staff, software, and             of
                                           equipment, and its effective             participating
                                           use for planning and                     municipalitie
                                           maintaining investments.                 s

                                                                                    Mapping of
                                           Area (in hectares) that
                                                                                    urban
                                           improved market gardening
                                                                                    agriculture
                                           activities and sustainable
                                                                                    area, survey
                                           development of local food
                                                                      Semi-         of
Improved market gardening areas with       systems through                                           Progress reports   PCU
                                                                      annual        participating
increased operations                       infrastructure investments
                                                                                    cities and
                                           including the installation
                                                                                    beneficiaries,
                                           and/or rehabilitation of
                                                                                    contractor
                                           water storage units and
                                                                                    reports
                                           marketing structures
                                           Number of local women                    Beneficiary
                                           producers with improved                  satisfaction
Women with improved capacity to                                            Semi-
                                           capacity to commercialize                survey,          Progress reports   PCU
produce and sell their shea butter                                         annual
                                           shea butter and related                  trainer
products
                                           products via with targeted               reports
                                           and relevant training

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                                           received in business and
                                           finance, including organic
                                           certification and standards
                                           as needed
Project related grievances received and
addressed within the project GRM
timeframe
 ME IO Table SPACE




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                       ANNEX 1: Implementation Arrangements and Support Plan

                                         COUNTRY: Côte d'Ivoire
                            Sustainable and Inclusive Secondary Cities Project

 Institutional arrangements
 1.      The Project will be implemented by the PCU of the PARU established under MINHAS. MINHAS will
 be responsible for strengthening the PCU and coordinating with the Prime Minister’s Office regarding the
 establishment of the project’s ISC. Local governments in the project target cities will be responsible for
 establishing LACs.
 2.      Inter-Ministerial Steering Committee. The ISC will be headed by the Prime Minister’s Office and will
 include representatives from MINHAS, Ministry of Economy and Finance, Ministry of the Budget and the
 State Portfolio, Ministry of Equipment and Road Maintenance, DGDDL, AGEROUTE, ONAD, ANAGED, ANDE,
 Geographic and Digital Information Center (Centre d ’Information Géographique et du Numérique, CIGN),
 Association of Regions and District of Côte d’Ivoire, and UVICOCI. The ISC will meet at least twice a year and
 hold extraordinary meetings as necessary. The ISC will, inter alia, provide overall project supervision and
 strategic guidance.
 3.      Project Coordination Unit. The PCU will be strengthened and expanded. While the PARU-PCU is
 based in Abidjan, for the Sustainable and Inclusive Secondary Cities Project, a DPIO will be established in
 Korhogo. This will allow DPIO staff to be closer to the target population and local stakeholders, and allow
 them to actively participate in day-to-day project implementation. The PCU will be responsible for all
 aspects of Project management. This will include fiduciary functions, M&E, and compliance with the ESF.
 The PCU will approve project investments proposed by local governments in concertation with relevant
 Ministries and Specialized Agencies. The PCU will be strengthened with at least a DPIO Manager, a Civil
 Engineer, an Urban Development Specialist, a Procurement Specialist, a Financial Management Specialist,
 an Accountant, an M&E Specialist, an Environmental Safeguard Specialist, a Social Development Specialist,
 and a SEA/SH specialist. Safeguard Assistants and Municipal Engineers will be hired to support project
 implementation of and oversee compliance with Project activities. They will also help strengthen local
 governments’ capacity for infrastructure planning and management. The composition of the PCU will be
 adjusted as needed in agreement with the Implementing Agency and the World Bank. Technical experts will
 be hired as appropriate, and are expected to include at least one urban development specialist, one urban
 planner, two urban infrastructure specialists, one solid waste management specialist, one land
 administration and geospatial information specialist, as well as one agriculture specialist.
 4.      Local Advisory Committees. Local governments will establish LACs in each city. They will be chaired
 by the mayor and include representatives from relevant municipal departments, decentralized government
 services, and civil society, community representatives, women’s and youth organizations, community-based
 organizations, NGOs and CSOs. LASs will help plan, coordinate, and monitor Project activities. LASs will have
 a key role in encouraging the participation of the civil society in the planning and implementation of the
 Project activities. Priority will be assigned to ensuring women representatives in the LACs.
 5.      Local governments. Local governments in the target cities will sign Project Implementation Support
 Framework Agreements with the PCU. Local governments will be responsible for preparing Priority
 Investment Plans in close collaboration with the LACs, line ministries, specialized agencies, and the PCU. The
 Project will hire Municipal Engineers and Safeguards Assistants to help local governments plan and oversee

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 project activities and will be responsible for strengthening the capacity of local governments through
 training and technical assistance. Depending on the capacity and needs of each local government, the
 project may hire additional experts to second them on relevant technical matters.
 6.       Line Ministries and Specialized Agencies. While PCU will be responsible for the Project’s fiduciary
 functions and will be staffed with technical experts in the fields relevant to the Project investments,
 ministries and specialized agencies will provide design and implementation support to the PCU within the
 framework of their technical mandate. The role and responsibilities of each party will be defined in Project
 Implementation Support Framework agreements to be signed prior to Project effectiveness. Framework
 agreements will be signed with the following: (i) MCLU for the activities related to urban planning, the
 regularization of urban subdivisions and urban land tenure regularization under Subcomponent 2.1; (ii)
 AGEROUTE for the rehabilitation and construction of urban roads under Subcomponent 1.3; (iii) ONAD for
 activities related to sanitation and drainage under Subcomponent 1.3; (iv) ANAGED for activities related to
 Solid waste management under Subcomponent 1.3; (v) Ministry of National Education and Literacy for
 investments related to educational facilities under Subcomponents 1.1 and 1.2; and (vi) Ministry of Health
 and Public Hygiene for investments related to health under Subcomponents 1.1 and 1.2.
                                      Table 1.1. Key institutions and their role
   No    Agencies              Areas of                Expected role                  Instruments
                               intervention
   1     Project               Responsible for all     Fiduciary; Planning;           Inter-ministerial
         Coordination Unit     aspects of project      Implementation; M&E;           decree expending the
         (PCU)                 management              Compliance with safeguards     mandate of the PCU
                                                       instruments.                   to cover the services
                                                                                      in connection with
                                                                                      the project
   2     Local Governments     Responsible for         Chair local development        Project
                               developing              committees; Propose            Implementation
                               investment              activities to be financed;     Support Framework
                               proposals               Prepare Priority Investment    Agreements signed
                               (including Priority     Plans; Review of technical     with the PCU
                               Investment Plans)       studies;
                               in close                Local oversight of project
                               collaboration with      implementation.
                               the LACs,
                               ministries,
                               specialized
                               agencies, and the
                               PCU
   3     Ministry of           Urban master plans,     Definition and approval of     Project
         Construction,         detailed master         investments in collaboration   Implementation
         Housing and Urban     plans, regularisation   with local governments and     Support Framework
         Development           of urban                the PCU;                       Agreement signed
         (MCLU)                subdivisions, and       Support the preparation of     with the PCU
                               systematic issuance     bidding documents;
                               of Arretes de           Participation in
                               Concessions             procurement processes;

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   No    Agencies               Areas of           Expected role                  Instruments
                                intervention
                                Definitives        Monitoring and approval of
                                (Subcomponent 2.1) deliverables.
   4     Roads Management       Rehabilitation or  Definition and approval of     Project
         Agency (AGEROUTE)      construction of    investments in collaboration   Implementation
                                urban roads        with local governments and     Support Framework
                                (Subcomponent 1.3) the PCU;                       Agreement signed
                                                   Definition of technical        with the PCU
                                                   norms;
                                                   Support the preparation of
                                                   bidding documents;
                                                   Participation in the
                                                   procurement processes;
                                                   approval of works.
   4     National Office for    Drainage           Definition and approval of     Project
         Sanitation and         (Subcomponent      investments needs in           Implementation
         Drainage (ONAD)        1.3)               collaboration with local       Support Framework
                                                   governments and the PCU;       Agreement signed
                                                   Definition of technical        with the PCU
                                                   norms;
                                                   Support the preparation of
                                                   bidding documents;
                                                   Participation in
                                                   procurement processes;
                                                   approval of works,
   5     National Waste         Solid waste        Definition and approval of     Project
         Management             managent (Sub-     investments in collaboration   Implementation
         Agency (ANAGED)        component 1.3 and with local government and       Support Framework
                                1.2)               the PCU;                       Agreements signed
                                                   Support the preparation of     with the PCU
                                                   bidding documents;
                                                   Participation in
                                                   procurement processes;
                                                   Approval of solid Waste
                                                   Management Plan;
                                                   Management of
                                                   infrastructure built.
   6     Ministry of National   Rehabilitation     Definition and approval of     Project
         Education and          /construction and  investments needs in           Implementation
         Literacy               equipment of       collaboration with local       Support Framework
                                infrastructure and government and the PCU;        Agreement signed
                                soci-education     Definition of technical        with the PCU
                                (Subcomponents     norms;
                                1.1 and 1.2)       Support the preparation of
                                                   bidding documents;

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   No    Agencies              Areas of              Expected role                   Instruments
                               intervention
                                                     Participation in
                                                     procurement processes;
                                                     Provision of staff (teachers)
                                                     in the rehabilitated/
                                                     constructed facilities
   7     Ministry of Health    Construction/rehab    Definition and approval of      Project
         and Public Hygiene    ilitation and         investments needs in            Implementation
         and Universal         equipment of          collaboration with local        Support Framework
         Health coverage       health centers        government and the PCU;         Agreement signed
                               (Subcomponents        Definition of technical         with the PCU
                               1.1 and 1.2)          norms;
                                                     Support the preparation of
                                                     bidding documents;
                                                     Participation in
                                                     procurement processes;
                                                     Provision of staff in the
                                                     rehabilitated/ constructed
                                                     facilities
   8     National              Safeguards            Oversight of compliance         Not applicable
         Environment                                 with national environmental
         Agency (ANDE)                               regulations



 Financial Management and Disbursements arrangements
 7.       The PCU will be the World Bank’s main counterpart and focal point for FM aspects of the project.
 This includes budgeting, financial reporting, supervision, management of the Designated Account (DA), and
 auditing.
 Budgeting
 8.      The PCU will prepare a budgeted annual action plan, to be discussed and validated during the
 Project SSC annual review, scheduled by the end of September of each year. The process will be detailed,
 and sample reports will be included in the PIM.
 9.       Not later than November 30 of the year preceding the year to which the work plan applies, it will
 first be submitted to the project Steering Committee for approval and then to the World Bank to ensure
 there is no objection. The budget will also reflect the activity to be implemented by the implementing
 entities; hence the creation of a budget lines for the activities to be implemented by each implementing
 entities The budgetary discussions will begin at least six months before the fiscal year of implementation
 and will consider the procurement plan as the starting point. Once the budget is approved, the budget
 execution will be monitored through the automated accounting software to serve as a basis for a budget
 execution monthly follow-up, based on variance analysis report comparing planned with actual
 expenditures that will be part of the quarterly unaudited IFR.




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 Accounting and Reporting
 10.     Accounting standards, policies, and procedures. The prevailing accounting policies and procedures
 will apply. These are aligned with the accounting standards for West African Francophone countries
 (SYSCOHADA) which are in use in Côte d’Ivoire for current World Bank-financed operations. The new
 project’s accounting systems, policies, and financial procedures will be documented in the Project
 Implementation Manual (PIM).
 11.     Accounting staff. PCU has a qualified and experienced FM specialist, who will be supported by one
 Chief Accountant and one accountant. This team will be reinforced by another FM specialist dedicated to
 this project, one chief accountant and one accountant. They will have the overall FM responsibility over
 budgeting, accounting, financial reporting, flow of funds, internal control, and auditing. The FM staff will
 have their capacity reinforced over the project implementation through the rolling out of the training plan
 that includes training on World Bank disbursement procedures and financial reporting arrangements,
 among others.
 12.     Accounting information systems software. The PCU will ensure within three months after the
 project’s effectiveness the well-functioning of the accounting software of PARU and its customization to
 handle the activities financed under this project.
 Internal Control
 13.      Internal controls. The internal control policies and procedures will be documented in the PIM which
 will be updated and adopted before project effectiveness. The PIM will document the FM and disbursement
 arrangements including internal controls, budget process, assets safeguards, and clarify roles and
 responsibilities of all the stakeholders.
 Internal Audit
 14.     The internal control system is necessary to ensure that (i) operations are effective and efficient; (ii)
 financial reporting is reliable; and (iii) the Project complies with all applicable laws and regulations. The PCU
 currently has a PIM. Therefore, for this Project the existing PIM will be updated, and it will describe work
 processes, information flow, authorization and delegation of authority, timing, job segregation, automatic
 and sequential controls, compliance with project objectives, and micro and macro rules. The FM section of
 the PIM will also clarify the procedures to comply with in executing the budgets allocated to the
 implementing agencies.
 15.      In line with the new Decree No. 475 governing how donor-financed projects will operate in Côte
 d’Ivoire, the General Inspectorate of Finance (Inspection Générale des Finances, IGF) will oversee the project
 internal audit function, managed by the PCU. Once the IGF is appointed, the PCU and the IGF will agree on
 the modalities of IGF interventions and the resources it will need to fulfill its mandate. The existing
 government internal controls systems in place including the use of budget controllers and separation of
 duties between the administrative phase of budget execution and the accounting phase of public
 expenditure channel will be used for the purposes of this project.
 16.     Transparency, accountability, and anti-corruption efforts will be encouraged including via a
 complaint handling mechanism; a communication strategy to inform the public through the media on all
 aspects of the project; and the publication on the implementing entity or government websites of budgets,
 financial reports and audited financial statements. The PCU will also have to deal with fraud and anti-
 corruption in accordance with the World Bank Anti-Corruption Guidelines referred to in the Financing
 Agreement.


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 Flow of Funds
 17.     A DA managed by the Directorate of Debt (Direction Générale du Trésor et de la Comptabilité
 Publique) will be opened for disbursement purposes at the Central Bank of West African States ( Banque
 Centrale des Etats de l’Afrique de l’Ouest, BCEAO). A project account (PA), managed by the public accountant
 assigned to the PCU, opened in a reputable commercial bank under conditions acceptable to the World
 Bank, will be used to pay expenditures. The Operational Account (project account) will be managed by PCU.
 Cash withdrawal transactions from the Operational Account will be authorized respectively by the Project
 Coordinator and the project’s FM Specialist.
 18.     Disbursements will be made in accordance with the Disbursement Guidelines for IPF dated February
 2017. Withdrawal application requests will be prepared by the Project’s FM specialist signed by a designated
 signatory or signatories (the signature authorization letter is signed by the Minister of Finance) and sent to
 the World Bank for processing. The Project will submit applications using the electronic delivery tool, “e-
 Disbursements”, available at the World Bank’s Client Connection website/web-based portal. The Authorized
 Signatory Letter will include authorization for the designated signatories to receive Secure Identification
 Credentials from the World Bank for delivering such applications by electronic means.
 19.      Once the credit becomes effective, Disbursements of IDA funds will be transaction-based
 disbursements. The Project will finance 100 percent of eligible expenditures inclusive of taxes. A DA will be
 opened at the central bank (BCEAO) and a Project Account (PA) in a commercial bank under terms
 acceptable to IDA. The PA will be managed by the public accountant assigned to the PCU by the Minister of
 Finance. The ceiling of the DA will be stated in the Disbursement and Financial Information Letter. An initial
 advance up to the DA ceiling will be made and subsequent disbursements will be made against submission
 of a Statement of Expenditures reporting on the use of the previous advance. The option to disburse against
 submission of quarterly unaudited IFRs (also known as report-based disbursements) could be considered
 once the project meets the criteria. Other methods of disbursing funds (reimbursement, direct payment,
 and special commitment) will also be available. The minimum value of applications for these methods is 20
 percent of the DA ceiling. The project will sign and submit Withdrawal Applications electronically using the
 eSignatures module accessible from the World Bank’s Client Connection website.
                                           Figure 1.1: Funds flow diagram

                                 IDA Account (Washington) at the World Bank

        Direct payment upon request from project         Designated Account (BCEAO) managed by MoF


                                                         Transactions Account managed by
                                                         Project in commercial bank

                                                                                Transactions Account by
                                                                                 implementing agencies


                                    Beneficiaries / Suppliers / Consultants




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 20.      The table below specifies the categories of eligible expenditures to be financed out of the proceeds
 of the financing, the amounts under each category, and the percentage of expenditures to be financed for
 eligible expenditures in each category.
                                       Table 1.2: Categories of Eligible Expenditures
                        Category                           Amount of the Financing      Percentage of Expenditures
                                                         Allocated (expressed in EUR)         to be Financed
                                                                                            (exclusive of Taxes)
   (1) Goods, works, non-consulting services,                    282,093,000            100%
   consulting services, Training and Incremental
   Operating Costs of the Project excluding Parts
   3.2(ii) and 4 of the Project

   (2) Land expenditures (including compensation for                  0
   land acquisition related to the implementation of a
   resettlement instrument), cash compensation and
   other assistance paid in cash for involuntary
   resettlement under Part 3.2(ii) of the Project

   (3) Front-end Fee                                               707,000              Amount payable pursuant
                                                                                        to Section 2.03 of this
                                                                                        Agreement in accordance
                                                                                        with Section 3.08 (b) of the
                                                                                        General Conditions

   (4) Emergency Expenditures under Part 4 of the                     0                 100%
   Project

   TOTAL AMOUNT                                                  282,800,000


 Financial Reporting
 21.    PCU will prepare quarterly un-audited IFRs in form and content satisfactory to the World Bank,
 which will be submitted to the World Bank within 45 days after the end of the quarter to which they relate.
 External Audit
 22.      An external independent and qualified private sector auditor will be recruited to carry out the audit
 of the Project’s financial statements. The annual audits will be conducted based on ToRs that are satisfactory
 to the World Bank. The Auditor will express an opinion on the Annual Financial Statements and perform his
 audit in compliance with International Standards on Auditing. The auditor will be required to prepare a
 Management Letter detailing observations and comments and providing recommendations for
 improvements in the accounting system and the internal control environment. The audit report on the
 annual Project financial statements and activities of the DA shall be submitted to the World Bank within six
 months of the end of each fiscal year.
 23.      In accordance with World Bank Policy on Access to Information, the Borrower is required to make
 its audited financial statements publicly available in a manner acceptable to the World Bank; following the
 World Bank’s formal receipt of these statements from the borrower, the World Bank also makes them
 available to the public.


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                                                 Table 1.3: FM action plan
      Issue                   Remedial action recommended             Responsible     Completion       Effectiveness
                                                                         entity                        conditions
      Staffing             Recruit a qualified and experienced       PCU            Three months       N
                           FM specialist, one chief accountant,                     after
                           and one accountant under ToRs                            effectiveness
                           acceptable to IDA.
      Information          Ensure the well-functioning of the        PCU            Three months       N
      system               PARUs accounting software                                after
      accounting                                                                    effectiveness
      software
      Interim Financial    Format, content, and frequency of         PCU            Prior to           N
      reporting (IFR)      the IFR will be agreed during project                    effectiveness
                           negotiation
      Administrative,      Update PARU Administrative,               PCU            Prior to           Y
      Accounting, and      Accounting and Financial Manual of                       effectiveness
      Financial Manual     procedures (as part of the PIM)
      of procedures
      Internal audit       Update of Internal auditor’s work-        PCU/           Three months       N
                           program to include the new project’s      IGF            after
                           internal auditing on a risk-based                        effectiveness
                           approach
      External financial   Appoint an external auditor               PCU            Six months after   N
      auditing             acceptable to the World Bank                             effectiveness

 Implementation Support Plan
 24.     FM implementation support missions will be carried out twice a year based on the substantial FM
 residual risk rating. Implementation Support will also include desk reviews such as the review of the IFRs
 and audit reports. In-depth reviews may be done where deemed necessary. The FM implementation
 support will include FM training missions for all implementing entities and will be an integrated part of the
 project’s implementation support plan.
                                                 Table 1.4: FM support plan
   FM Activity                                                                      Frequency
   Desk reviews
   IFRs review                                                                      Quarterly
   Audit report review of the project                                               Annually
   Review of other relevant information such as interim internal control systems    Continuous as they become
   reports.                                                                         available
   On site visits
   Review of overall operation of the FM system                                     Once per year (Implementation
                                                                                    Support Mission)
   Monitoring of actions taken on issues highlighted in audit reports, auditors’    As needed
   management letters, internal audit, and other reports
   Transaction reviews (if needed)                                                  As needed
   Capacity building support
   FM training sessions                                                             During implementation and as
                                                                                    needed


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 25. The conclusion of the assessment is that the FM arrangements in place meet the World Bank’s
 minimum FM requirements under World Bank IPF Policy and Directive, and subject to the implementation
 of the FM action plan above, are therefore adequate to provide, with reasonable assurance, accurate and
 timely information on the status of the project required by World Bank. The project’s FM residual risk of the
 project is assessed as Moderate.
 26.   Financial Management Risks and Mitigation Measures. The FM risk assessment and mitigations
 measures are summarized in the table below:
                                      Table 1.5: FM Risks and Mitigation Measures
    Risk                              Risk     Risk-Mitigation Measures Incorporated      Effectiveness      Residual
                                      Rating   into Project Design                        Conditions (Y/N)   Risk
    Inherent Risks:                    M                                                                      M
    Country:                                   Beyond the control of the project: The
    The PEFA undertaken in 2017                government is committed to a reform
    and the PIMA in 2016 identified      S     program that includes preparation of a             N                S
    critical PFM weakness.                     Strategic Framework for PFM reforms in
                                               Côte d’Ivoire. However, there are still
                                               weaknesses. This project requires use of
                                               the World Bank FM procedures
                                               supported by Decree 475.
    Entity Level                               The PCU is familiar with the World Bank
    PCU has a good knowledge of         M      FM procedures and is well staffed.                 N               M
    World bank policies.
    Project level                              The updated version of project current
    Misunderstanding of                        FM procedures, internal controls and a
    responsibility as the project       M      clear description of the roles and                 N               M
    involves several stakeholders.             responsibilities of the various
                                               stakeholders will be taken into
                                               consideration with appropriate
                                               trainings.
    Control Risks:                      M                                                                         M
    Delays in budget preparation               Budget procedures clearly defined in the
    process of the project                     Project FM manual of procedures.
                                        M                                                                         M
                                               And PCU has a good knowledge in                    N
                                               budget preparation
    Accounting
    Risk of increasing of the FM               This team will be reinforced by another
    team workload leading to some              FM specialist dedicated to this Project,
    delays in the submission of the     M      one chief accountant and one                       N               M
    required reporting.                        accountant.
    Lack of adequate accounting
    software                                   The existing accounting software will be
                                               customized to consider the new
                                               project’s specificities.




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    Risk                              Risk      Risk-Mitigation Measures Incorporated      Effectiveness      Residual
                                      Rating    into Project Design                        Conditions (Y/N)   Risk
    Internal Audit
    Weak compliance with FM                     The FM manual will outline approval
    procedures manual and of                    and authorization procedures with clear
    circumventing internal control       S      segregation of duties. The project’s               N               M
    systems                                     internal audit annual work-program will
                                                be updated to include this Project’s
                                                internal auditing.
    Funds Flow                                                                                                     M
    - Risk of misuse of funds and               - Payment requests will be approved by
    use funds to pay non eligible       M       the Coordinator and the Project FMS                N               M
    purposes or combined with                   prior to disbursement of funds.
    other projects funds managed                - Require of the FM team to ensure
    by the PCU                                  monthly submission of the withdrawal
    - Weak capacity in the                      application.
    disbursement procedures of the              - Perform external audit.
    World Bank which could affect
    the disbursement rate.
    Reporting
    Delay and difficulties in                   The IFR reports will be generated by the
    preparation of acceptable IFRs      M       accounting software and support from               N               M
    and financial statements                    the FMS.
    External Audit
    Project audit reports might be              An independent qualified financial
    submitted with delay and                    external auditor will be recruited.
    inacceptable quality.               M                                                          N               M

    Risk of fraud and corruption
    Overall Risk                        M                                                                          M
 H: High; S: Substantial; M: Moderate; L: Low

 Procurement
 27. Procurement for the Project will be carried out in accordance with the World Bank’s Procurement
 Regulations for IPF Borrowers (“Procurement Regulations”) dated November 2020; the Guidelines on
 Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and
 Grants dated October 15, 2006, and revised in January 2011 and as of July 1, 2016; and the provisions
 stipulated in the Financing Agreement.
 28. Côte d’Ivoire adopted a Procurement Code (Order N°2019-679 dated July 24, 2019) and Decree n°475
 dated July 1, 2015 in line with the WAEMU’s procurement Directives and international good practices, along
 with key implementing regulations and documentation. An electronic system for collecting and
 disseminating procurement information and for monitoring procurement statistics has been set up and
 needs to be mainstreamed in the work of all contracting authorities.
 29. The publication of procurement notices including the GPN and Specific Procurement Notices (SPN)
 will be in line with paragraphs 5.22, 5.23, and 5.24 of the World Bank’s Procurement Regulations. A GPN
 should be published on the United Nations Development Business and World Bank’s external website as
 soon as the project is approved. SPN Requests for Expression of Interest and results of the evaluation and
 contracts award should be published in accordance with advertising provisions in the World Bank’s

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 Procurement Regulations.
 30. Approaching the international market (international competitive procurement) is appropriate when
 the participation of foreign firms will increase competition and may assure the achievement of best Value
 for Money and fit-for-purpose results. Open international competitive procurement, for which international
 advertisement is required in accordance with Procurement Regulations, is the preferred approach for
 complex, high-risk, and/or high-value contracts. The World Bank has set specific thresholds for this purpose.
 104. The PPSD and a Procurement Plan for the project’s first 18 months were prepared by the Borrower
 and approved by the World Bank. A qualified consultant was recruited to help the PCU perform this
 operation. The PPSD identified optimum procurement strategies for meeting the PDO, and the Procurement
 Plan sets the selection methods. Per the PPSD, the total amount of contracts to be awarded under the
 Project is estimated at approximately US$254.3 million for more than two hundred (200) procurement
 processes to be conducted. Contracts related to the works represent 79 percent of the credit amount to be
 allocated to all the contracts; consultancy contracts represent about 16 percent, and those relating to
 supplies 5 percent. All contracts to be awarded will represent at least 84 percent of the amount of project
 financing. Further, the PPSD recommends strengthening the procurement capacity of the PCU with at least
 one Senior Procurement Specialist, two Procurement Specialists, and additional specialists and assistants as
 needed.
 31. There may be situations where direct procurement from United Nations (UN) agencies may be the
 most appropriate method. In such circumstances, the project would make specific arrangements with the
 respective UN agencies through a single-source selection; in turn, the UN agencies would then follow their
 own procurement procedures to purchase and deliver the goods and services needed.
 32. Project implementation will be entrusted to the PCU along with the associated fiduciary
 responsibilities (procurement and FM). A capacity assessment of the PCU was carried out with a focus on (i)
 the person in charge of the procurement process; (ii) the procedure manual; and (iii) the expertise of the
 PCU in terms of the procurement process. The assessment has shown that while the PCU has the required
 experience, skills, and knowledge, the procurement personnel is limited. The procedure manual fits with
 World Bank standards for timely project implementation. The main findings of the capacity assessment of
 the PCU are outlined in the following paragraphs.
 33. Person in charge of the procurement process. The assessment revealed that the PCU has a
 procurement specialist who is familiar with and has recently been trained on World Bank procurement
 procedures. The procurement specialist received training on the new procurement framework and
 specifically on the PPSD. The procurement specialist has also been trained on contract management. Per
 the new procurement framework, the procurement specialist is responsible for contract management of
 the project. Thus, the procedures need to be adapted to reflect these changes.
 34. Procedure manual. Given the PCU’s current involvement in the implementation of a World Bank
 financed project, there is an established procedures manual in place that is aligned with World Bank
 requirements. However, that manual should be updated to meet the requirements of the new project.
 35. Expertise of the PCU in terms of procurement process. Despite the PCU’s experience in World Bank FM
 and procurement procedures, the assessment shows that the quality of the procurement documents and
 contract management could be improved.
 36. To minimize the risks identified and ensure that the Sustainable and Inclusive Secondary Cities Project
 is implemented as per the World Bank standards, at least one Procurement Specialist and one Procurement
 Assistant should be dedicated to the new operation. The Terms of Reference, qualifications, and experience

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 of the appointed specialists will be reviewed by the World Bank. If the specialists are recruited, the selection
 should be done through a competitive process according to national procedures. As the DPIO is expected to
 be in Korhogo, an organization chart will confirm which of the procurement specialist or the assistant will
 be in Abidjan or in Korhogo.




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                                       ANNEX 2: Economic Analysis

                                         COUNTRY: Côte d'Ivoire
                            Sustainable and Inclusive Secondary Cities Project
                                           Economic Analysis

 1.        A Project economic analysis was conducted to confirm the economic feasibility and rationale of the
 proposed infrastructure investments in roads, solid waste management, drainage, sanitation, health,
 education, and urban agriculture. These investments are expected to bring significant socioeconomic
 benefits by, among others, (i) improving mobility through a reduction of travel time, upgrade of road
 condition, all weather proofing for climate resilience, and flood control; (ii) strengthening human capital;
 (iii) reducing vector-diseases incidence; and (iv) improving sanitary conditions. In the medium term, the
 project will improve people living conditions and social cohesion in the targeted cities.
 2.       Given the lack of granular data, a cost-benefit analysis was conducted for investments planned in
 urban roads and solid waste management. The analysis is conservative and only considers the estimated
 direct beneficiaries of these investments. For roads, the analysis considers data for vehicle operating
 expenses and time saves due to road improvement, and determines a value for accidents avoided (deaths,
 injuries and associated costs). For solid waste management, benefits from prevented damage and
 destruction of buildings due to improved flood protection, and reduced disease rates (prevented sickness,
 death, and associated costs) are the primary data factors used for analysis. For the other investments such
 those related drainage, education, sanitation, health, urban agriculture, and economic facilities, the
 methodology adopted is based on benefit-to-cost ratios, NPV and EIRR from similar investments in cities in
 other countries in Sub-Saharan Africa as well as from projects in northern Côte d’Ivoire and neighboring
 countries.
 Urban roads
 3.      Alongside the benefits derived from improved road safety, and reduced travel time and vehicle
 operating expenses, the improved connectivity from new and upgraded roads between cities bring wider
 benefits associated with improved spatial integration in country. These include raised economic activity due
 to increased connectivity and trade between cities, which in turn have impacts on economic growth and
 spending power of individuals. It is expected that the project will finance the construction of 70 km of urban
 roads for an estimated cost of US$70 million, including studies, supervision, and works costs. Maintenance
 costs are assumed to be 1 percent of the investments based on the reality and context in the field. In terms
 of benefits, vehicle operations, travel time and accidents reduction costs have been quantified. For a
 discount rate of 6 percent, the economic analysis shows an NPV of US$208.04 million and an EIRR of 17
 percent. Sensitivity tests have also been done to confirm the robustness of the analysis: (i) an increase of
 10 percent of the investments costs shows an NPV of US$200.1 million and an EIRR of 15 percent; and (ii) a
 decrease of 20 percent of benefits shows an NPV of US$166.4 million and an EIRR of 17 percent. To ensure
 socioeconomic benefits, roads construction should be planned in a spatially integrated manner so that it
 connects key sites in the cities (e.g., urban poor to jobs and markets, and informal settlements to schools
 and/or healthcare facilities). To ensure resilience, roads should have associated drainage.
 Solid waste management
 4.      More effective solid waste management, especially the construction of sanitary landfills, have the
 benefits of reduced emissions due to better disposal of waste, reduction in flooding due to less waste

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 blocking both natural and manmade storm water channels, and reductions in disease such as malaria,
 diarrhea, and typhoid. The project is expected to finance sanitary landfills in four cities. Investments costs
 have been associated with maintenance costs amounting to 1 percent of the investments costs over a 20-
 year economic period). Flood control, given the close link between a controlled chain management of waste
 with a good performing stormwater system, malaria incidence reduction, and CO2 emissions costs have
 been estimated for the analysis. High and Low Shadow Carbon Prices have been used to make the estimates.
 5.      The cost of carbon is shown to be a significant factor in economic outcomes. This is corroborated in
 the Côte d’Ivoire National Electricity Digitization and Access Operation (P176776), where the high and low
 price of carbon led to a variation on NPV of 53 percent and of variation of EIRR of 34 percent for grid
 connection investments.
                             Table 2.1: EIRR and NPV for Solid waste management
             Description                                 EIRR (%)                NPV (US$ million) at 6%
                                                Shadow Price of Carbon- Low
             Base                                        18                      26.3
             Sensitivity test: +10% on investments costs 17                      25.6
             Sensitivity test: -20% on benefits          18                      21.1
                                                Shadow Price of Carbon-High
             Base                                        24                      41.2
             Sensitivity test: +10% on investments costs 23                      40.4
             Sensitivity test: -20% on benefits          24                      32.9
 Drainage
 6.      Globally, urban flood impacts are more devastating than rural ones because they affect a greater
 number of people and a higher asset concentration. Disrupted or inadequate drainage can cause or
 exacerbate flooding, which can cost lives, damage, or destroy property and spread effluent and solid waste.
 Unsanitary conditions can also spread disease due to stagnant pools of water caused by hampered free
 drainage. Sediments in ponds and rivers can also increase due to run off from roads without adequate
 drainage. Therefore, drainage benefits range from saved lives to avoided costs related to infrastructure and
 property damage (including impacts on housing, businesses, roads etc.). Improved drainage systems also
 help water discharge, help preserve the water table, and reduce the occurrence of water borne diseases
 due to stagnant water.
 7.     Côte d’Ivoire’s economic development, combined with a lack of land planning and infrastructure
 maintenance, have deepened its urban problems, and led to environmental degradation and greater
 vulnerability to natural hazards. Major factors exacerbating this vulnerability include:
     (i) occupation of areas not suitable for construction, building dwellings in high-risk areas such as
         storm basins.
     (ii) a deficit in alternative housing exacerbated by rural-to-urban migration.
     (iii) a lack of investment for implementation of master plans for sanitation and drainage.
     (iv) an inadequate solid waste management system, causing unsanitary conditions and spreading
          diseases.
     (v) insufficient involvement of local authorities in development management.




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 8.      While climate modelling scenarios present a large variability over the very long term, by 2050, the
 country could face an estimated 9 percent decrease of precipitation in May coupled with an increase of 9
 percent in October and 30 cm of sea level rise. Rising temperatures and increased variability will also
 increase the frequency and magnitude of extreme events. These will further exacerbate the risk of flooding
 due to more frequent extreme precipitations and lack of capacity to discharge stormwater by the existing
 drainage systems. While precise flood models for northern cities are not available, these challenges are
 expected to affect them.
 9.       The Project plans US$61.6 million in drainage investment across all eight investment areas. This
 includes construction of 33 km of stormwater drainage channels, preparation of sanitation and drainage
 master plans, and acquisition of equipment for local governments. Specific city-level investments will be
 decided based on community engagement and participatory planning and will be coordinated to ensure
 spatial integration of the selected investments.
 10.      The proposed Project’s drainage investments can be considered positive in economic terms. As
 reference points, the analysis in the PARU, which finances drainage in Abidjan, points to a 28 percent EIRR.
 Similar projects in other countries show a EIRR range of between 10 percent (Cameroon) to 32 percent (Mali
 and Mozambique).
 11.     For economic analysis, given the lack of other data, a range of benefit-to-cost ratios are used based
 on investments from comparable projects in other comparable jurisdictions. The low end of the range is
 1.43x (Tanzania) and the high end is 2.8x (Mozambique). Analysis of the planned drainage investment for
 this project assumes a five-year funds dispersal period. A 10-year benefits realization period is assumed,
 where no benefits are realized in years 1 and 2, 72 percent of benefits are realized in years 3, 4, 5 and 6,
 with 28 percent of benefits are realized in years 7, 8, 9 and 10. A discount rate of 6 percent is assumed.
 Operations and Management costs are assumed at 5 percent of total investment amount per annum,
 starting in year 3. A reduction in deaths due to flooding per km and an increase in employment due to
 prevented flooding disruption are also assumed.
 12.     The baseline scenario assumes a benefit to cost ratio of 2x. In this scenario the EIRR of drainage
 investments is 16 percent and NPV is US$17.8 million. (This analysis is subject to change as more information
 on investments and beneficiaries is finalized).
 13.     The table below tests sensitivity of drainage investments by varying the benefit-to-cost ratio, and
 the discount rate to show the effect on NPV. Baseline scenario as set out above is in grey.
                            Table 2.2: EIRR and NPV for Drainage investments
                                        Discount rate
                      Benefit ratio     4%                 6%                8%
                      1.43              (US$5.1M)          (US$7.8M)         (US$10.0M)
                      1.8               US$13.3M           US$8.8M           US$5.0M
                      2                 US$23.2M           US$17.8M          US$13.2M
                      2.5               US$48.1M           US$40.3M          US$33.6M
                      2.8               US$63.1M           US$53.8M          US$45.8M


 Latrines
 14.     Benefits of investment in latrines consist of (i) value of reduced mortality due to improved
 sanitation- and hygiene-related outcomes; (ii) value of reduced childhood malnutrition related to reduced

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 bouts of diarrhea and nematode infections; (iii) value of reduced healthcare costs; (vi) value of reduced
 foregone income; (v) value of reduced school absence; and (vi) value of time saving due to increased privacy
 and proximity of sanitation points to frequented areas, as laid out in the Cameroon Sanitation Project Phase
 1 (P117102).
 15.     This project plans US$1 million in latrine investment across the investment areas.
 16.     Economic analysis from the World Bank-financed Gulf of Guinea Northern Regions Social Cohesion
 Project (P175043) assesses investment in construction of latrines and indicates positive investment
 outcomes.
 17.    Estimated yearly benefits are US$6,735 per five toilet latrines. The cost of a five-toilet latrine is
 estimated at US$29,544. Over a twenty-year period, EIRR per five-person latrine is 24.5 percent, with NPV
 of US$41,062. Sensitivity is shown with cost overruns, benefits reductions, and benefits lagging by two
 years.
 18.     The EIRR is similar in economic analysis for this project at 26 percent, with an NPV of US$678,000.
                                     Table 2.3: EIRR and NPV for Latrines

                                Latrine                      NPV (US$)      EIRR (%)
                                Cost Increase 10%            37,844         24.5
                                Benefits reduce 10%          33,738         21.5
                                Benefits lag two years       26,617         15.6
 Water
 19.      Investing in water supply infrastructure will provide positive economic benefits of higher and more
 reliable access to safe potable water, which include direct savings in healthcare costs and lost work-time
 due to averted cases of diarrhea and malnutrition related disease, as well as potential savings, productivity,
 and education gains due to time savings realized by households gaining access closer to their home. In
 addition to investments in water connections and networks, benefits are also derived from the construction
 of water boreholes, which also help realize health benefits related to reduced risk of diarrhea morbidity,
 value of time saved to access drinking water; and cost savings from decreased need to purchase water. The
 project plans US$11.9 million in drinking water investment across all seven investment areas. Per city this is
 allocated as follows, which includes investment in water connections, network extensions and boreholes.
 20.      Economic analysis from the World Bank-financed Gulf of Guinea Northern Regions Social Cohesion
 Project (P175043), which assesses investment in boreholes indicates positive investment outcomes for each
 type of investment.
 21.    For water connections, the EIRR is 10 percent (lowering to 8 percent with a 10 percent capital cost
 overrun and 6 percent with a 20 percent overrun), with an NPV of US$3.4 million, based off a US$6.7 million
 investment.
 22.    For boreholes, over a twenty-year period and based on a cost of US6,266 per borehole, EIRR per
 borehole is 54 percent, with NPV of US$25,192 at a 6 percent discount rate. Sensitivity is shown with cost
 overruns, benefits reductions, and benefits lagging by two years.




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                                      Table 2.4: EIRR and NPV for Water

                            Borehole sensitivity        NPV (US$)          EIRR (%)
                            Cost Increase 10%           24,333             48.7
                            Benefits reduce 10%         21,814             48.2
                            Benefits lag 2 years        18,528             30.0

 Health
 23.       The project plans about US$18.2 million in health investment across all eight investment areas. This
 includes construction of small, central urban and larger scale healthcare facilities, including maternity
 clinics, as well as improvements and repairs to existing facilities.
 24.     Benefits of improved access to primary healthcare units consist of value of reduced maternal
 mortality, value of reduced morbidity-related deaths, value of reduced infant and general mortality, value
 of quicker and more effective medical treatment.
 25.     Economic analysis from the World Bank-financed Gulf of Guinea Northern Regions Social Cohesion
 Project (P175043), assesses investments in construction of primary healthcare facilities indicates positive
 investment outcomes for primary health care facilities. Over a twenty-year period, based on a cost of
 US$71,070 per health care unit, EIRR per unit is 67 percent, with NPV of US$390,764. Sensitivity is shown
 with cost overruns, benefits reductions, and benefits lagging by two years.
                                      Table 2.5: EIRR and NPV for Health

                 Health sensitivity           NPV (US$)                    EIRR (US$)
                 Cost Increase 10%            363,780                      58.3%
                 Benefits reduce 10%          324,704                      57.5%
                 Benefits lag two years       260,464                      27.9%

 Education
 26.     Benefits of improved access to educational facilities consist of value of reduction in child mortality
 and maternal deaths related to mother literacy and value of increased productivity income per year of
 additional schooling. The project plans about US$18.4 million in education investment across all eight
 investment areas. This includes school upgrades and improvements, and new school/classroom
 construction.
 27.     Economic analysis from the World Bank-financed Gulf of Guinea Northern Regions Social Cohesion
 Project (P175043), which assesses investment in construction of classrooms, indicates positive investment
 outcomes. Estimated yearly benefits are US$18,476 per classroom. The cost of a classroom is estimated at
 U$14,446. Over a twenty-year period, EIRR per classroom is 55.1 percent, with NPV of US$59,691. Sensitivity
 is shown with cost overruns, benefits reductions, and benefits lagging by two years.
                                    Table 2.6: EIRR and NPV for Education

                               Education sensitivity        NPV (US$)      EIRR
                               Cost Increase 10%            48,486         43.3%
                               Benefits reduce 10%          42,517         42.1%
                               Benefits lag two years       817            15.7%

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 Urban agriculture and economic equipment
 28.      Investment in urban agriculture and restoration/provision of economic equipment supports
 increasing productivity for small scale farmers, pastoralists, aquaculture producers and small businesses
 through provision of improved inputs, restoring productive assets for displaced populations, diversifying
 livelihoods, and increasing resilience to shocks, which has an added benefit of promoting stability.
 29.     Similar investments in the Gulf of Guinea Northern Regions Social Cohesion Project (P175043)
 focussed on rehabilitation of primary markets, increasing resilience and productivity of local farmers,
 aquaculture and livestock producers, including allowing for climate-smart adaptation. In this case the total
 strategic investment for climate adaptation at the local level to ensure robust economic activity was
 US$67.5 million, with an NPV at 6 percent of US$284.4 million and an IRR of 63.5 percent. Sensitivity is
 shown in cost overruns, benefits reductions and benefits lagging by two years.




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                                        ANNEX 3: Climate Co-Benefits

                                          COUNTRY: Côte d'Ivoire
                             Sustainable and Inclusive Secondary Cities Project

 1.     The Project will achieve climate Co-Benefits through a series of comprehensive cross-cutting
 approaches and activities on both mitigation and adaptation side.
 2.       Mitigation: Optimizing urban forms, methods of construction, and design represents powerful
 levers for energy efficiency. This objective will be pursued through actions on: (i) build-up density, by
 concentrating investments in denser areas to reduce the energy and infrastructure costs per inhabitant and
 shorten the distances between housing and public and commercial facilities, as well as preserving and
 developing green belt to limit urban sprawl; (ii) accessibility, by developing access to dense neighborhoods
 through resilient road rehabilitation, using basic road profile, with sidewalks, pavements, surface gutter,
 double lane, roadsides tree planting, greening ; (iii) “soft” mobility, by encouraging the use of non-motorized
 modes of transport - developing sidewalks, bike lanes, two-wheelers parking (to avoid parking on sidewalks),
 greening the roadsides to improve walkability; (iv) energy efficiency, with energy-efficient street lighting,
 installation of solar panels on public facilities, and energy efficient school / public facilities retrofits; and (v)
 waste management and storage (methane capture)
 3.       Climate change adaptation: A major objective of the Project is to manage urban floods combining
 grey infrastructure measures (drainage systems and flood defenses), nature-based solutions, and softer
 approaches (land use planning and early warning systems) with relevant support provided to authorities.
 Examples of green infrastructures include: (i) to absorb rainwater - bioswales, permeable paving, trees &
 plants, green shores & riverbanks, park as water retention; (ii) to store / capture rainwater –retention pond
 wet/dry, constructed, and natural wetland, rainwater tanks, and roof water storage; and (iii) to drain
 rainwater – green ditches/ open water channels, cascading drain, road drainage, reinstatement of
 vegetation and re-vegetation. Heatwaves and other climate risks will also be managed through green
 infrastructures such as green corridors (Korhogo), forest preservation and improvement, contour planting
 (along roads), green urban park, public green space, multifunctional sports field, planting trees and plants
 in schoolyards, preserving urban agriculture in lowlands.
 4.      The Project will finance investments in solid waste management in Bouna, Boundiali, Tengréla and
 Odienné. The Project will support the establishment of more efficient and resilient management and
 treatment systems (e.g., organization of collection and pre-collection and treatment, and construction of
 recovery and technical landfill centers with methane capture) that will improve the daily lives of the
 inhabitants of these cities, most of whom are vulnerable to the effects of the anarchic treatment of
 municipal solid waste (e.g., proliferation of diseases and decrease in the city's competitiveness due to
 insalubrity). An assessment of the greenhouse gas emissions resulting from these investments has been
 carried out. It is based on the methodologies and formulas defined by the Intergovernmental Panel on
 Climate Change (IPCC) and the World Bank's Curb tool. Data used comes from the General Directorate of
 Sanitation and Hygiene for those that are available, and from the report "What a Waste 2.0". The analysis
 shows a gross emission over a 10-year economic lifetime of 619,091 t Co2 and a net emissions of -376,246
 t Co2. and the results has been used in the project economic analysis using shadow price of carbon.
 5.       See Tables 3.1 and 3.2 for details on the integration of these measures per subcomponents and
 activities:


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                        Table 3.1 – Estimated cost breakdown by subcomponent and activities
      Project Components                                                                             US$
                                                                                                    million
      Component 1: Developing Green and Climate Resilient Urban infrastructure in Selected          250.0
      Secondary Cities
      Sub-component 1.1: Quick Impact Investments                                                    40.0
      Renovation of and improvement to health, education, and recreational facilities                 25
      Purchase of goods for the renovated facilities and to support local associations                 5
      Tree planting and anti-erosion measures                                                         10
      Subcomponent 1.2: Social and Economic Infrastructure                                           60.0
      Construction and rehabilitation of health, education, and recreational facilities              28.0
      Greening of public spaces                                                                      10.0
      Creation and protection of green spaces (e.g., parks, forests, and riverbanks)                 10.0
      Rehabilitation and construction of economic infrastructure (e.g., markets and bus stations)    12.0
      Subcomponent 1.3. Roads, Sanitation, Solid Waste Management and Water                          150.0
      Infrastructure
      Rehabilitation or construction of urban roads                                                   70.0
      Preparation of sanitation and drainage master plans                                              2.0
      Construction of stormwater channels and complementary Nature-Based Solutions                    66.0
      Preparation of Communal Solid Waste Management Plans                                             2.0
      Cleanup campaigns and promotion of recycling and circular economy opportunities                  2.0
      Construction of sanitary landfills                                                               8.0
      Component 2: Providing Support to Local Governments in Selected Secondary Cities                30.0
      Sub-component 2.1: Urban planning, land administration, and municipal services                  10.0
      activities
      Green and climate-resilient Urban Master Plans, Detailed Urban Plans, and Local Dev. Plans       5.0
      Regularization of urban subdivisions, land tenure, and housing policies                          2.0
      Establishment of Geomatics Units                                                                 3.0
      Sub-component 2.2: Capacity Development for urban management and social                          8.0
      participation
      Hiring of municipal engineers                                                                   1.5
      Formulating and implementing technical assistance and training plans                            3.0
      Hiring community organizers                                                                     1.5
      Implementing activities aimed at encouraging and strengthening citizen engagement               2.0
      Subcomponent 2.3: Local Economic Development                                                   12.0
      Studies and strategies to support local economic development                                    2.0
      Establishment or reinforcement of a local economic development services                         2.0
      Sustainable development of local food systems                                                   8.0
      Component 3: Project Management and Coordination                                               20.0
      Staffing and training                                                                           8.0
      Rental of premises, equipment, and operating costs                                              4.0
      Development and implementation Environmental and Social Framework (ESF) activities              3.0
      Public information, citizen engagement, communications, and knowledge exchange                  5.0
      Total                                                                                          300.0


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         Table 3.2: Specific Project Activities to Address Climate Change Vulnerability and Mitigation

     Component                                    Climate-Relevant Activity
    Component 1:           Sub-component 1.1: Quick Impact Investments
    Developing             Renovation of and improvement of health, education, and recreational
    Green and              facilities:
    Climate
                                  Renovations of public buildings and recreational facilities will follow
    Resilient
                                   climate-resilient and energy efficient technical designs, informed by
    Urban
                                   the Green and Resilient Cities for Northern Côte d’Ivoire’s Technical
    infrastructure
                                   Assistance.
    in Selected
    Secondary                     Surroundings spaces and courtyard of public buildings, recreational
    Cities                         facilities will be greened to provide shade and cooler areas and
                                   contribute to climate change mitigation.
                           Tree planting and anti-erosion measures:
                                  Tree planting and anti-erosion measures in river basins, along exist
                                   drainage canals, and roads, will help capture carbon dioxide, reduce
                                   heat island effects, reduce erosion caused by falling rain, help absorb
                                   water in the soil, and help control stormwater runoff.
                           Subcomponent 1.2: Social and Economic Infrastructure
                           Construction and rehabilitation of health, education, and recreational
                           facilities
                                  Construction of these public facilities buildings, will follow climate-
                                   resilient technical and energy efficient designs, informed by the Green
                                   and Resilient Cities for Northern Côte d’Ivoire Technical Assistance.
                                   This will increase the resilience of critical social infrastructure in all
                                   cities.
                                  It will provide shelter points in cases of climate-related disasters and
                                   allow for quicker recovery. Improved access to education will provide
                                   a vehicle for communication of drills, increased awareness of climate
                                   change matters, and implementation of behavioral change campaign
                                   (for instance on solid waste).
                                  Surroundings spaces and courtyard of public buildings, recreational
                                   facilities will be greened to provide shade and cooler areas and
                                   contribute to mitigation.
                                  Construction of these social and economic will accommodate for
                                   migrants (climate and conflict induced) and enhance social cohesion of
                                   these cities that present a severe lack of infrastructure and services
                                   facilities and are exposed to fragility due to their location close to the
                                   borders with Mali and Burkina Faso with high levels of climate in-


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     Component                                      Climate-Relevant Activity
                                   migration toward secondary cities which further increases their
                                   exposure and vulnerability to climate change.
                           Greening of public spaces and Creation and protection of green spaces (e.g.,
                           parks, forests, and riverbanks)
                           Mitigation activities:
                                  Greening of public spaces will produce shade and increase walkability,
                                   reducing the likelihood of a car-oriented, higher carbon development
                                   path. Construction or renovation of public buildings will include
                                   climate-smart technical designs (e.g., energy efficient design and solar
                                   energy).
                           Adaptation and mitigation activities:
                                  Creation and protection of green spaces and protected areas such as
                                   parks, forests, and riverbanks will help absorb heat during extreme
                                   heat events, reduce the urban heat island effect and therefore energy
                                   demand for cooling. Green belts will facilitate a better control of urban
                                   sprawl. Additionally, it will Increase green space and tree canopy that
                                   absorb air pollution, including GHGs.
                           Rehabilitation and construction of economic infrastructure (e.g., markets and
                           bus stations)
                                  Construction of these commerce and transport facilities, will follow
                                   climate-resilient technical designs, informed by the Green and
                                   Resilient Cities for Northern Côte d’Ivoire Technical Assistance. This
                                   will increase the resilience of critical social infrastructure in all cities.
                                  Surroundings spaces and courtyard of public buildings, recreational
                                   facilities will be greened to provide shade and cooler areas and
                                   contribute to mitigation.
                                  The rehabilitation of markets will strengthen the resilience of the local
                                   farmers, facilitating the trading of their products, strengthening the
                                   agricultural logistic and overall increasing the local farmers ability to
                                   adapt to climate change. Market facilities will integrate preventive and
                                   protective measures to address the climate change impacts on
                                   agricultural logistics
                                  Rehabilitation of bus stations will reinforce the mass public transport
                                   system and increase its usage, reducing the usage of personal mode of
                                   transportation
                           Subcomponent 1.3. Roads, Sanitation, Solid Waste Management and Water
                           Infrastructure
                           Rehabilitation or construction of urban roads
                           Mitigation activities:

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      Component                                         Climate-Relevant Activity
                                    Roads to be financed by the project were selected through an urban
                                     analysis and spatial approach. The road constructed and rehabilitated
                                     will foster a higher density of urban development, and accessibility by
                                     developing access to dense neighborhoods and key socio-economic
                                     infrastructures.
                                    Constructed roads will include sidewalks, public lighting, and tree
                                     planting which will increase walkability, reduce the likelihood of a car-
                                     oriented, higher carbon development path. Urban greening and
                                     Nature Based Solutions will also aid carbon sequestration and lower
                                     urban GHG-levels.
                                    “Soft” mobility, by encouraging the use of non-motorized modes of
                                     transport - developing sidewalks, bike lanes, two-wheelers parking (to
                                     avoid parking on sidewalks).
                                    In addition, roads in good condition slow down the wear and tear of
                                     vehicles and the increased average speeds result in lower fuel
                                     consumption and consequently in lead to a reduction in CO2 emissions,
                                     thus supporting climate change mitigation.
                            Adaptation activities:
                                    Road selected to be financed in the city priority investment plans are
                                     key to access critical infrastructures (schools, health centers, markets,
                                     bus stations). Currently, many roads are difficult to use due to damage
                                     from climate hazards and the lack of climate-resilient measures in
                                     construction and maintenance, and they may be impassable during
                                     extreme weather events. They can be they impassable during extreme
                                     weather events. All-weather proofing of roads that used to be dirt
                                     roads or severely deteriorated will be accessible under worsening
                                     climate change conditions.
                                    Accessibility facilitated by the roads to key infrastructure (schools,
                                     health centers, markets, bus stations) will increase overall climate
                                     resilience of these cities making them able to function normally under
                                     worsening climate change conditions. It will also provide better
                                     disaster response access and food security in the cities.
                                    Drainage along the roads, and further the application of the “Green
                                     Roads for Water”42 approach will allow to protect roads while
                                     managing rainwater and improve overall stormwater management of
                                     the city.
                                    Soil permeability will be increased by using appropriate materials for
                                     streets, public facilities, markets and parking, and a combination of


 42 World Bank (2021) Green Roads for Water: Guidelines for road infrastructure in support of water management and
 climate resilience.

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     Component                                       Climate-Relevant Activity
                                   small-scale nature-based solutions like bioswales will be integrated in
                                   the design.
                           Preparation of sanitation and drainage master plans
                                  The sanitation and drainage master plans contain a specific volume on
                                   stormwater water that will enable the cities to identify the key flood
                                   risk mitigation investment required to limit flood impact in their cities.
                                  Drainage masterplan will have a specific focus on the utilization of
                                   nature-based solutions for stormwater management.
                           Construction of stormwater channels and complementary Nature Based
                           Solutions
                                  The construction of at least 30 km of stormwater channels and
                                   complementary Nature Based Solutions (e.g., green space
                                   conservation or renaturation of watercourse, water buffer using public
                                   green space or urban agriculture) will increase the targeted cities
                                   resilience to urban flooding, which is projected to increase with higher
                                   precipitation during the rainy season.
                                  Urban greening and Nature Based Solutions in the drainage systems
                                   will include the addition of bioswale, conservation of urban agriculture,
                                   and existing wetland present in floodable areas of the river basin. It will
                                   reduce the urban heat island effect in the local context that is highly
                                   vulnerable to increasing mean and max temperatures due to climate
                                   change and provide mitigation impact.
                           Preparation of Communal Solid Waste Management Plans, cleanup
                           campaigns, and promotion of recycling and circular economy opportunities
                                  The communal solid waste management plans will aim achieving no
                                   illegal dumping and burn, installation of sorting facilities, and methane
                                   capture technology at the sanitary landfill.

                                  Cleanup campaign will direct the waste to the sanitary landfills and be
                                   organized before rainy seasons in order to ensure the proper function
                                   of the drainage network for extreme rainy events.
                           Construction of sanitary landfills
                                  This activity will finance the establishment of integrated solid waste
                                   management services, and the construction of controlled landfills
                                   (with methane capture and sorting facilities) in Odienné, Boundiali,
                                   Tengréla and Bouna.
                                  Unmanaged solid waste is a major cause of flooding due to waste
                                   clogging the various stormwater management system during extreme
                                   weather event worsened by climate change. Implementation of a well
                                   performing solid waste management system will ensure functioning


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       Component                                           Climate-Relevant Activity
                                          drainage systems for flood prevention, and mitigate urban GHG-
                                          emissions from unmanaged solid waste.
      Component 2:              Sub-component 2.1: Urban Planning, land administration, and municipal
                                services activities
      Providing
      Support to                         Risk of river flooding is medium to high in all districts and pluvial flood
      Local                               is medium to high in most districts that the targeted cities are part of
      Governments                         Urban planning capacity, enforcement and improved land
      in Selected                         administration are decreasing the risk of urban expansion in hazard
      Secondary                           prone areas, such as riverbanks and land-slide-prone soils.
      Cities
                                Green and climate-resilient Urban Master Plans, Detailed Urban Plans, and
                                Local Dev. Plans
                                         The development of the Green and climate-resilient Urban Master
                                          Plans, Detailed Urban Plans, and Local Dev. Plans will enable climate-
                                          smart land-use planning and urban growth management in peri-urban
                                          settings. Particularly the plans will take into account flood, and water
                                          scarcity risks.
                                         Urban plans will also foster densification, better accessibility, non-
                                          motorized modes of transport, and overall and higher efficiency of the
                                          city to reduce the energy and infrastructure costs per inhabitant and
                                          shorten the distances between housing and public and commercial
                                          facilities, and avoid carbon intensive development.
                                         Urban plan will specifically consider the conservation of forested areas,
                                          greenbelts, urban agricultures, and green spaces more broadly to
                                          ensure both mitigation and adaption benefits.
                                Regularization of urban subdivisions, land tenure, and housing policies
                                         Improved land registration systems have a range of positive effects for
                                          climate adaptation, inter alia:43
                                              o    Formalized and registered land rights allow people to evacuate
                                                   their land during climate disasters without fear of losing it or
                                                   leaving anybody behind to protect the land and risk their lives.
                                              o    Formalized and registered land rights allow people to safely
                                                   reclaim their land after climate disasters.
                                              o    Formalized and registered land rights reduce loss of land, land
                                                   grabs, and elite capture during and after climate disasters.
                                              o    Formalized and registered land rights enable land holders to
                                                   apply for insurance and compensation after climate disasters.


 43IPCC, 2019: Summary for Policymakers. In: Climate Change and Land: an IPCC special report on climate change, desertification, land
 degradation, sustainable land management, food security, and greenhouse gas fluxes in terrestrial ecosystems. IPCC.

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       Component                                                Climate-Relevant Activity
                                                o    Formalized and registered land rights give land holders the
                                                     legal right to sell their land, which is a key coping mechanism
                                                     after climate disasters.
                                 Sub-component 2.2: Capacity Development for Urban Management and
                                 Social Participation
                                          Through building technical and institutional capacity, this sub-
                                           component enables sound management of green and resilient
                                           investments planned. It will enable the mainstreaming of climate
                                           change consideration in the design and supervision of all
                                           infrastructures and technical assistance activities.
                                          Local engineers hired by the projects, the PIU, local government staff,
                                           and national technical agencies staff will be trained on topic such
                                           climate-resilient and energy efficient design, flood risk management,
                                           utilization of nature base-solutions, and green spaces, and improving
                                           mobility and accessibility.
                                 Subcomponent 2.3: Local Economic Development
                                          Strengthening of sustainable local food value chains and storage is
                                           expected to increase resilience climate-related stresses to urban food-
                                           systems, such as heatwaves and drought.44
                                          The local economic development plans will support the local food
                                           value chains to adopt climate adaptation practices and increase the
                                           resilience of the local farmers.
                                          Local economic development plans will account for the climate
                                           adaptation of the food value chains.
      Component 4:                        This component would support emergency                               recovery      and
      Contingent                           reconstruction efforts for future disasters.
      Emergency
      Response




 44Blay-Palmer, A., Santini, G., Dubbeling, M., Renting, H., Taguchi, M., & Giordano, T. (2018). Validating the city region food system
 approach: Enacting inclusive, transformational city region food systems. Sustainability, 10(5), 1680.

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                             ANNEX 4: Priority Investment Plan: Framework


 Methodology for developing the cities’ Priority Investment Plans
 1.      The Project aims to have a significant impact in eight secondary cities that presents a severe lack
 of public infrastructure and services, and potential fragility due to their location close the northern border
 with Mali and Burkina Faso. The objective of the investments planned under the project is to make the
 cities more spatially and socially inclusive, economically attractive, greener, and environmentally
 sustainable. Urna Infrastructure and services need to be upgraded to improve the populations’ living
 conditions, provide jobs and economic opportunities, leverage the cities’ role as drivers of economic
 growth, as well as making then greener and more resilient to climate change.
 2.       To meet those objectives, a PIP will be prepared for each target city through an approach combining:
 (i) the definition of a series of basic principles and overarching objectives (green and climate resilient urban
 infrastructure); (ii) consultations with local governments, ministries, specialist agencies, development
 partners local communities to elaborate a long list of sub-projects, and perform an initial screening based
 on the alignment with project objectives and existing urban master plans and sector programs; (iii) a spatial
 urban and socioeconomic diagnosis to rationalize and prioritize investments; (iv) the validation and formal
 adoption of the plans by the target municipalities; and (v) an understanding that PIPs may have to be
 regularly updated throughout project implementation. Those elements have been used based on an
 iterative approach.
 Framing through a menu of investments
 3.       Based on the PDO, available urban studies, and preliminary discussions with local governments,
 local communities, and other Project stakeholders, the following categories of investments were defined:
 (i) quick impact investments; (ii) socio-economic urban infrastructure; and (iii) basic urban infrastructure
 such as those related to transportation, drainage, solid waste management and water supply. These
 investments can fall either under the mandate of ministries, specialized agencies, or local governments. It
 was also agreed that investments proposals should be aligned with municipal three-year rolling plans (“ plans
 triennaux”) and other planning documents prepared at the local, regional, and national levels. A tentative
 fund allocation was also established for each municipality based on population and an equalization formula
 to support the programming approach and guide discussions with stakeholders. Both were used as initial
 framing for the participatory approach described below.
 Participatory approach and initial screening
 4.       A first series of priority investments were identified by municipalities, in close collaboration with
 local communities, ministries, specialized agencies, and other stakeholders. Consultations were initiated in
 2021 with the support of the Coordination Unit of the Urban Resilience and Solid Waste Management
 Project (PCU) and resulted in a long list of over 800 investment proposals amounting to over US$1.5 billion.
 These include investments proposals made from existing municipal three-year rolling plans and other
 planning documents.
 5.      Investment proposals were discussed, screened, and prioritized considering their relevance
 regarding the PDO, the basic principle of green and climate resilient urban infrastructure, and the tentative
 fund allocation. Other criteria have been considered such as number of beneficiaries, implementation
 complexity, social, economic, and environmental impact, complementarity with investments under other
 projects financed by the government and development partners, and finally, overall impact on living

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 conditions and attractiveness of the city. Available studies, plans, and strategies were reviewed to ensure
 that the proposed investments are aligned with local, regional, and national priorities. Public consultations
 were held to ensure that the investment proposals reflected the priority needs of local civil society and local
 stakeholders. As a result, a shortlist of proposed integrated investments amounting to US$250 million was
 compiled. This shortlist represents an initial list of possible investments to be further prioritized through
 spatial and economic approach specific to each city, and further public dissemination and consultation for
 final validation and adoption. It may also be adjusted from time to time in a common agreement between
 the World Bank, the implementing agencies, and local governments.
 Prioritization through a spatial urban and economic approach
 6.       Site visits and further participatory process are organized in each city to continue ensuring joint
 programming with municipalities, local communities, and other involved stakeholders. The objective is to
 prepare a first version of the PIPs to be financed by the Project. Attention was given to the identification of
 the urban and economic challenges specific to each. To limit urban sprawls and foster agglomeration
 economies, an integrated multi-sectoral spatial approach was used, considering the overall characteristics
 of the territory, and spatial location and concentrations of both people and economic activities. Having
 scattered small size investments has been avoided to favor integrated urban and economic impact.
 Developing access to public facilities in densely populated neighborhoods and central areas, and
 preservation of urban green spaces have been favored. Risk-sensitive climate-resilient urban planning and
 infrastructure design are also paramount in view of these cities’ vulnerability to climate change and its
 resulting impact on poverty. Within this frame, the infrastructure investments proposed are grouped into
 three broad areas of interventions:
     (i) Public facilities to support social and economic development. The focus is on the rehabilitation and
         construction of public schools and other educational facilities, nurseries, local health centers, parks,
         squares, markets, cattle markets, and bus stations. These public facilities are prioritized in the same
         selected dense and/or poor neighborhoods whose access are strengthened by the Project. Green
         and climate resilient design is favored for all investments.
     (ii) Urban roads. Well-connected street grids bring connectivity and access to facilities, jobs, and
          markets. The project finances the construction or renovation of urban roads with associated
          drainage. The focus is on (a) unlocking residential vulnerable neighborhood and their facilities, and
          (b) improving access to city centers and economic activities areas. Attention is paid to improving
          safety at accident-prone intersections, non-motorized transportation (footpath, sidewalks,
          footbridges) and tree planting along roadsides to limit rain flows and improve walkability.
     (iii) Drainage, nature-based infrastructure, and solid waste management. The focus is on restoring,
           improving, and protecting the capacity of the drainage system to increase resilience to floods.
           Priority is given to lowlands and existing natural areas to safeguards and support urban agriculture,
           parks, and green belts to limit urban sprawl and protect existing jobs. Solid waste management
           infrastructure complements planned investments from the PARU.
 Participatory validation and formal adoption of the PIPs
 7. Draft PIPs and associated maps are disseminated, discussed, and validated through a consultative and
    participatory process managed jointly by the PCU and local governments. Once validated by local
    governments, the PCU and the World Bank, PIPs serve as a roadmap for project investments .
 8. PIPs may be adjusted from time to time in a common agreement between the local governments, the
    PCU and the World Bank.

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                                            ANNEX 5: Map




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