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PROJECT INFORMATION DOCUMENT (PID)
APPRAISAL STAGE
Report No.: AB3536
Project Name
IQ-EMERG. COMMUNITY INFRASTR. REHAB.
ADDITIONAL FINANCING
Region
MIDDLE EAST AND NORTH AFRICA
Sector
Irrigation and drainage (75%);Water supply (25%)
Project ID
P109296
Borrower(s)
GOVERNMENT OF IRAQ
Implementing Agency

Environment Category
[
]
A
[X] B [ ] C [ ] FI [ ] TBD (to be determined)
Date PID Prepared
February 25 , 2008
Date of Appraisal
Authorization
January 24, 2008
Date of Board Approval
March 25, 2008
1.
Country and Sector Background
Iraq water sector has been plunged into crisis, with dramatic effect on the incomes and health
status of the Iraqi people. The lack of preventive maintenance since the 1980s and the heavy
dependence on public budgetary support have both diminished the effectiveness of service
organizations to meet the day-to-day needs of households and farmers. Iraq
�s agriculture is a
major rural employer, which contributes 10% to the GDP, thus constituting 35% of Iraq�s non-oil
GDP. Irrigated agriculture is the largest consumer of water but water is used inefficiently or not
very productively. Potentially irrigable lands exceed 3 million hectares, which far exceeds the
current areas that are fully-equipped with irrigation facilities. Irrigation assets from pumping
stations to canal networks degraded due to lack of maintenance, while degraded drainage
networks have contributed to soil salinization and water logging. About 70% of the lands are
poorly irrigated or suffer salinity or water logging. Productivity is falling by 1% per annum. By
2002, about 80% of basic staples (wheat, rice, sugar, vegetable oil, protein meals) were imported,
and 50% of the population has been subject to mal-nutrition and food insecurity. About 30% of
the farmers are already out of farming. Agriculture unemployment surged to 5% (out of 27% of
national unemployment) and agriculture contribution to GDP fell accordingly. Community
groups are disintegrating and farmers no longer contribute irrigation fees nor participate in
decision-making.
The normal response in such a human and economic crisis is to invest in rural infrastructure, for
a
fast revival of the agricultural livelihoods, and for urgent provision of rural water supply. This
is clearly imperative for Iraq�s degraded water assets. Further, global experience with post-
conflict situations shows that the crisis provides an opportunity for instituting sensible reforms
on the policy and institutional fronts.
In cooperation with the GOI, the Bank completed in FY06 a diagnostic Sector Work entitled
�Iraq Water Resources Assistance Strategy�
.
One of its key recommendations is to use an
output-based approach, by targeting investments in priority rehabilitation and modernization to
achieve vivid and immediate improvements in rural water infrastructure. These investments
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would be contingent upon an assurance to achieve tangible and immediate results of water
security and employment creation.

2. Objectives
Following the above, the Iraq Emergency Community Infrastructure Rehabilitation Project
(ECIRP) became effective in December 2004 and due to close on December 31, 2008. The
project employed a flexible programmatic approach that allows interventions to adapt to the
changing realities on the ground and to the inte
rventions of other donors. Although the project�s
focus is on job creation and local socioeconomic impact, it helped lay the groundwork for
irrigation and drainage sector rehabilitation and reform
.
The proposed additional financing,
US$26 million, will contribute to the socio-economic recovery of the rural poor, through aiming
at Project Development Objectives (PDOs) similar to the current phase:
(a) Restoration of the irrigation, drainage and rural-water supply infrastructure; and
(b) Fast creation of local employment.

3.
Rationale for Bank Involvement and for the Additional Financing
The comparative advantages of the Bank lies in its ability to: (i) bring its international
experiences and best practices in community rehabilitation and development projects under post-
conflict/in-conflict conditions (Afghanistan, East Timor, Kosovo, West Bank and Gaza); and
(ii) build capacity in existing local Iraqi institutions by involving them in the execution of the
project, thereby creating greater commitment and ownership of the reconstruction process.

The smaller-scale, spatially dispersed subprojects under ECIRP are currently performing better
and faster than the otherwise larger-scale projects. The project experienced very satisfactory
disbursement rates and effective impacts on the ground. Thus, a scaling up has been requested
by GOI. The sector and country units agreed that ECIRP can readily receive additional US$26
million from the uncommitted balance of the ITF. The MOWR indicated it can effectively
implement this size of additional financing before end June 2010, thus six months before the ITF
closure in end 2010. The MOWR has already prepared technical designs and fast-tracked
feasibility studies for a US$30-million worth of subprojects.

4. Description
The ongoing project is designed as an emergency operation that is able to respond to evolving
demands in terms of intervention and financing requirements. The additional financing will
contribute to the same PDOs stated above, albeit through minimal improvements in project
design. These improvements aim to further expedite implementation, and to enhance impacts and
ownership of the end-beneficiaries, and develop the capacity of MoWR. The additional financing
will use the same components of the ongoing project, as described below:

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Part A: Implementation of selected subprojects aimed at rehabilitation and modernization
of irrigation, drainage, and rural water supply facilities in the north, middle and south of
Iraq, including provision of the required equipment.
Subcomponent 1
:
Rehabilitation and modernization of small irrigation, drainage and rural water
supply infrastructure (US$19 million):
This subcomponent would include improving the physical state of main and secondary canals
and drains and associated structures. The Iraqi team presented to the Bank a list of 12 sub-
projects to be financed under this component, four of which are located in the Kurdistan
Regional Government (KRG). Funds allocated for each sub-project range between US$0.5 and
US$2 million. The table provided in Annex 3 provides a list of those 12 sub-projects with their
salient features including data on the benefiting population and served areas, and fast-tracked
data inferring the subproject�s socioeconomic viability (unit costs and the C/O ratio). The PMT
prepared the so-called �Annexes 1� for appraising those 12 sub-projects, against a number of
technical, socioeconomic and environmental criteria, with special attention to the acreage
improved and the number of end beneficiaries and labor man/days. Some of these sub-projects
(especially in KRG) are of multi-purpose nature, where the main systems to be rehabilitated
facilitate (in addition to irrigation) water supply and mini-hydropower.

Subcomponent 2
:
Provision of Equipment and Goods (around US$4 million):
This subcomponent would include the procurement of machinery (about 20 in number) and
equipments for the MOWR central and regional offices. The machinery and equipment would
include: excavators, trucks, batching plants, various communication equipment (cell phones for
field engineers), computers, office supplies, etc. Below is the breakdown and associated costs:
�
5
Cargo Trucks: for transporting well-drilling equipments and pipelines (to be distributed
across all governorates). Unit cost US$175,000; Total cost US$875,000
�
4
Movable Batching Plants. Unit cost US$320,000; Total cost US$1,280,000
�
8
Hydraulic Excavators (chain long boom): Unit cost US$175,000; Total cost US$1,400,000.
�
3
Hydraulic Excavators (standard wheeled): Unit cost US$140,000; Total cost US$420,000.
�
Communication Tools and Computers: Total cost US$25,000.

Part B:
Provision of technical assistance and training to strengthen the Recipient�s capacity
in water resources and irrigation management, participatory irrigation management,
information technology and construction supervision (US$0.37 million):
This part would include the internal and external training and capacity building for MOWR
personnel (US$370,000; see breakdown in Annex 5). Training is to be provided in the fields of
water resources and irrigation management, participatory irrigation management (PIM),
information technology, construction supervision, etc. The internal training will contribute to
empowering the �Training and Development Center� of the MOWR (which has been short of
donor and GOI funds). The center will undertake most of the internal training. The internal
training (US$90,000 from ITF grant and US$20,000 from MOWR co-finance) would be
financed through two disbursement categories:
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�
Project management (hence, Category 2):
for the training center�s operating costs (though
part of this will be co-financed from MOWR funds), and payment allowances for the trainees
and for trainers who are from the MOWR civil servants.
�
Consultancy services (hence, Category 1):
for the consultancy fees to be paid to external
trainers (if any) who are not from MOWR staff, e.g., including from the academia and the
private sector.

(i) Internal training:
�
Total US$90,000 (excluding a co-finance by MOWR of about US$20,000, for
transportation and accommodation of the trainers);
�
For about 250 trainee; 2,000 trainee man/days;
�
Training themes would include: (i) criteria of international accounting; analysis of
financial statements; (ii) banking transactions; (iii) project management; state of the art of
design and construction of pilot projects; (iv) design of hydraulic structures; (v)
feasibility studies; irrigation water management at the field level; (vi) design of modern
irrigation networks (sprinkler and drip); (vii) �Prokon� for structural analysis; and (viii)
maintenance of irrigation and drainage networks. This training will also include
�Training the Trainers� program.

(ii) External training (through international recruitment of training firms or academia):
�
In Holland/USA/Jordan/etc
1
:
estimated at a total US$0.28 million;
�
For about 20 trainee; 200 trainee man/days;
�
This training will transfer to MOWR the state of the art in topics such as Integrated Water
Resources Management (IWRM), Satellite Imagery for irrigation and environmental
projects, and Participatory Irrigation Management (PIM, through formation and
empowerment of Water User Associations and Irrigation Councils, based on hydrological
boundaries as opposed to administrative boundaries).
�
The trainees trained abroad would eventually train the trainers in the MOWR�s training
center, in order to ensure transfer of international knowledge to as much MOWR�s staff
as possible.

Part C:
Strengthening the Recipient�s capacity for Project management, monitoring
and evaluation, including financing of Operating Costs (US$0.73 million):
This part would include:
(a)
Recruiting auditors for project accounts (US$75,000);
(b) Recruiting M&E consultant(s) (US$55,000): to assist the PMT in undertaking field
surveys to monitor intermediate outcomes (e.g., incremental areas irrigated) and to
evaluate ultimate impacts (e.g., increased yield and local employment). This will help
the PMT complete the regular semi-annual M&E reports as well as prepare the
Implementation Completion Report (ICR) by the end of the project;
(c)
PMT costs related to supervision of project�s activities (including travel to participate
in the WB/MOWR follow-up missions), estimated at US$300,000; and
1
Other o
ptions include the newly-established
Arab Water Institute
,
based in Dubai, which is the academic
arm of the Cairo-based
Arab Water Council
.
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(d)
Transportation and over-night per diems (estimated at a total US$300,000): for the field
engineers/technicians working on the project. The PMT prepared a proposal given in
Annex 5, and will apply a transparent and comprehensive method to execute this proposal.

5. Financing
Source: (US$m.)
Borrower 0
Iraq Reconstruction Trust Fund
26
Total
26

6. Implementation
The Iraq Ministry of Planning and Development Cooperation (MOPDC) reviewed the activities
proposed under the additional financing and, through the Iraq Strategic Review Board (ISRB),
ensured harmonization with the other-donors programs. As with the current ECIRP, the MoWR
will continue to implement ECIRP through its Project Management Team (PMT) housed in
MoWR in Baghdad. Subproject designs have been performed by MoWR in Baghdad through
consultation with its regional directorates respective to each subproject. The day-to-day
supervision of subproject activities will be undertaken by the resident staff of MoWR�s regional
directorates, with occasional oversight through the field visits made by the PMT. The
agricultural data, both for subproject design and for Monitoring and Evaluation, have been
obtained by MoWR in coordination with the Ministry of Agriculture (MoA) and with the
General Directorate of Agriculture and Water
of MOPDC.

For all Bank operations, the Bank has been engaging a qualified firm (a Fiduciary Monitoring
Agent [FMA]) to monitor procurement, disbursement, and financial reporting related to the ITF,
to support the Bank�s own supervision. The Bank Task Team (accompanied by the FMA for the
last three ISR missions) has been regularly supervising the project (in Amman, Cairo or Beirut)
through meeting the PMT and their peers in the other pertinent ministries.

Sustainability
Project design rests on rapid rural appraisals and simplified feasibility studies for the subprojects
proposed by MOWR, which are conducted by the local Iraqi consultants hired under the project.
Given the large information gaps on the situation in rural Iraq, especially the lack of an in-depth
social analysis, community-driven interventions will be gradually phased-in as experience grows,
both within the Bank and our counterparts in the ministries and participating governorates.

As for the post-project O&M requirements of the project interventions,
MoWR handles its O&M
activities through typical public-sector provisions, i.e., in terms of securing the required recurrent
budget from sovereign resources and in terms of the mechanism followed to execute the O&M
activities. Regarding the execution mechanism, the regional directorates of MoWR are
mandated to undertake O&M through their in-house departments, or whenever needed, through
commissioning the private sector. Generally, the infrastructural sectors in Iraq are still far from
developing Public-Private-Partisanships (PPP) through which O&M can be addressed in a
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bottom-up/demand-
responsive approach (e.g., via fostering �Design-Build-Operate� contracts).
However, ECIRP does not seek to develop any new capital-intensive trunk infrastructure that
could pose worrisome contingent liabilities on MoWR (or on ECIRP) in terms of the required
O&M. Instead, ECIRP only involves rehabilitating small-scale infrastructure, mainly canals and
drains at the feeder-level or secondary-level distribution level. The average capital unit cost of
these interventions is about US$700/hectare. The needed O&M unit cost corresponding to the
latter figure is about US$30/hectare/annum: a figure that is within MoWR�s recurrent budget.

To ensure fiduciary compliance, the project scope has been initially limited to the water sector so
as to avoid complex procurement and financial management arrangements across several sectoral
government entities.

Donor coordination with agencies active in the water sector will be actively pursued as part of
the preparation, implementation and monitoring of the proposed emergency intervention.

7. Lessons Learned from Past Operations in the Country/Sector

8.
Safeguard Policies (including public consultation)

Safeguard Policies Triggered by the Project

Yes

Environmental Assessment
(
OP
/
BP
4.01) [X]
[
]
Natural Habitats (
OP
/
BP
4.04)

[
]
[X]
Pest Management (
OP 4.09
)
[
]
[X]
Physical Cultural Resources (
OP/BP 4.11
)
[
]
[X]
Involuntary Resettlement (
OP
/
BP
4.12)

[
]
[X]
Indigenous Peoples (
OP
/
BP
4.10)

[
]
[X]
Forests (
OP
/
BP
4.36)

[
]
[X]
Safety of Dams (
OP
/
BP
4.37)

[
]
[X
Projects in Disputed Areas (
OP
/
BP
7.60)
*
[
]
[X]
Projects on International Waterways (
OP
/
BP
7.50)

[
]
[X]
The project recognizes the emergency nature of the proposed reconstruction interventions, and
the related need for immediate assistance, while at the same time ensures due diligence in
managing potential environmental and social risks. The proposed additional financing operation
will be used in executing a number of small-scale rehabilitation subprojects, each in the range of
US$2,000,000 maximum. These subprojects are anticipated to have no major environmental or
social impacts. Furthermore, the proposed project is being processed under emergency
procedures OP 8.00, and the environmental and social safeguard assessments are expected to be
carried out during implementation under an environmental and social safeguards framework
(revised ESSAF), which has been specifically tuned for the Iraq situation and has already been
disclosed in Iraq and in the Bank�s InfoShop. The proposed Additional Financing, as compared
to the ongoing project, will implicate no changes as to ESSAF. For preparation and appraisal of
*
By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the
disputed areas.

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each subproject financed through the Additional Financing, the client has been responsible for:
(i) vetting the subproject against ESSAF; (ii) explaining how to address the safeguards issues if
any; and (iii) sharing the results with the Bank towards completing the appraisal. Post project
effectiveness, and to account for any safeguards issue that may emerge after starting the field
works, the client is to insert the related clauses (Attachment 2 of the revised ESSAF) in the
respective civil-work biding documents, thus mandating the contractor to address this issue.

9.
List of Factual Technical Documents

Project Paper, Procurement Plan and Disbursement Plan.

10. Contact point

Contact: Ahmed Shawky M. Abdel Ghany
Title: Senior Water Resources Specialist
Tel: (202) 473-1712
Email: ashawky@worldbank.org

11. For more information contact:
The InfoShop
The World Bank
1818 H Street, NW
Washington, D.C. 20433
Telephone: (202) 458-4500
Fax: (202) 522-1500
Email: pic@worldbank.org
Web: http://www.worldbank.org/infoshop

WB15774
P:\!UNITS\MNSSD\AShawky\ECIRP AF - P109296\Appr\Project Information Document - Appraisal Stage.doc
02/26/2008 8:42:00 AM