Msimbazi Basin Development Project Project Implementation Supervision Mission August 12-16, 2024 A. Introduction 1. A World Bank team1;, the Presidents Office- Regional Administration and Local Government; Tanzania Roads Agency (TANROADs); Dar es Salaam Local Government Authorities, Co-financiers Invest International and the Spanish Agency for International Development; and other project stakeholders undertook an implementation supervision mission for the Msimbazi Basin Development Project (P169425) from August 12-16, 2024. In addition, a meeting with Dr. Natu El-maamry Mwamba Permanent Secretary for Treasury with regard to the financing gap and emergency interventions under the project was realized on August 22,2024. The main objective of the mission was to review the implementation progress of the project. 2. The Mission thanks the Permanent Secretary for Treasury, the World Bank Finance Coordinator for Msimbazi Project Subcoordinator and technical team from the President’s Office - Regional Administration and Local Government (PO-RALG), Regional Administrative Secretary (RAS), Dar es Salaam Local Authorities (DLAs), Tanzania Roads Agency (TANROADS), Dar es Salaam Rapid Transit Agency (DART), Dar es Salaam Regional Commissioner’s Office (RC–DSM), Dar es Salaam City Council (DCC), Kinondoni Municipal Council (KMC), Ilala District Commissioner’s Office, Kinondoni District Commissioner’s Office, Ministry of Lands, Housing and Human Settlement Development (MLHHSD), Prime Minister’s Office – Disaster Management Division (PMO-DMD), Tanzania Private Sector Foundation (TPSF), Ministry of Natural Resources and Tourism (MNRT), Wami Ruvu Basin Water Board (WRBWB), National Environmental Management Council (NEMC); Vice President’s Office – Environment (VPO), Tanzania Meteorological Agency (TMA). The World Bank team wishes to thank all Government officials for the courtesies extended. B. Overview 3. In September 2022, the World Bank Board Approved US$200 million investment in the Msimbazi Basin Development Project. The Msimbazi Basin Development Project is intended to strengthen flood resilience and integrated urban development in an economically important and flood prone area of the Msimbazi river basin in Dar es Salaam. C. Overall Status of Project: Action Scheduled Status Approval September 30, 2022 Completed Effectiveness February 19, 2023 Completed Disbursement total (%) USD91 million (45%) USD56 million (27%) 1The meetings and discussions were co-led by John Morton (Senior Urban Specialist and TTL), and Boris Ton Van Zanten (Sr. Disaster Risk Management Specialist) and comprised Lulu Dunia (Municipal Engineer); Mussa Natty (Resilience Specialist Consultant); Gladness Rwejumura (Transport Specialist Consultant); Muindi Musyangi (Sr. Engineer consultant); Nyambiri Kimacha (Resilience Consultant); Rachel Morena (Communications Consultant); Nkundwe Mwakiluma (Sr. Financial Management Specialist); Raymond Mpishi (Sr. Procurement Specialist); Mwikali Wambua (Sr. Social Development Specialist); Gregory Maggio (Sr. Social Development Specialist Consultant); Gaspar Mashingia (Social Development Specialist consultant); Mohammed Khandeel (Sr. Environmental Engineer); George Kimara (Environmental Safeguards Specialist Consultant); Gladness Mukemfura Rwejumura (Transport Specialist); Yonas Mchomvu (Sr. Transport Specialist). 4. Overall Implementation Schedule and Progress: The schedule for implementation was reviewed in detail during the mission, and the project was found to be on track to meet its project development objective before the closing date of June 2028. Completion of Implementation preparation/bidding Resettlement of flood prone communities Compensation Completed November 2023-November 2024: Livelihoods restoration Februrary 2024 September 2024-Feb-2026 In-kind housing June 2025 June 2025-December 2025 Major works Jangwani Bridge September 2024 November 2024- November 2026 Excavation works March 2025 March 2025-March 2027 New BRT bus depot November 2024 January 2025-June 2026 MSPA management Land use and master November 2024 November 2025 planning Infrastructure and services November 2025 March 2026-July 2027 Real estate development July 2026 August 2026- continues after project Institutional Strengthening June 2025 new institution June 2026 new institution of MSPA established operational Watershed management Sand traps and middle basin June 2025 September 2024-March 2025 works Watershed management March 2025 March 2025-September 2026 plan Watershed equipment November 2024 November 2024-June 2028 Solid waste service December 2024 January 2024-June 2026 improvement D. Key issues and agreements: 5. Implementation of Resettlement Action Plan: The resettlement action plan for flood prone communities commenced in November 2023 to compensate the 2,775 PAPs. At this time 90% of those eligible for compensation for structures have been paid, 61% of those eligible for land compensation have been paid and 45% of tenants eligible for compensation have been paid. The Grievance Redress Mechanism (GRM) is operational and over 90% of reported grievances have been resolved. As of June 2024, eight were outstanding in PORALGs GRM and 6 in the World Bank GRS system. More are being registered and processed as the resettlement process continues. The resettlement of the PAPs affected by the DART bus depot has been completed, however the compensation needs to be corrected to comply with the RAP. The PAPs to be affected by the terrace works have yet to begin being compensated as PORALG is waiting for confirmation of financing (estimated to be US$20 million) for this compensation. The Livelihood Restoration Plan for both the flood prone communities and DART bus depot is planned to begin in September. 6. The mission emphasized the need to move ahead at pace and that finishing the compensation would be needed before the earthworks and bus depot construction can begin. This would require facilitatation of the completion of payments by DCC and PORALG and provide related documentation by the PAPs; ensuring the compensation and inclusion of eligible PAPs is consistent with the RAP; responding to outstanding grievances; begining implementation of the livelihood restoration plan and addressing the financing gap. It was agreed PORALG and DCC should complete the RAP compensation and related actions before the next supervision mission. During the mission an agreement has been reached on addressing the financing gap (See relevant point below). 7. Scope of Watershed Management Component: The mission reviewed the scope of the activities for the watershed component and agreed the following activities would be included and therefore covered by World Bank policies: (i) development of a watershed management plan; (iii) monitoring equipment and activities for water quality, river flows, sedimentation and land use and land use change; (ii) sand trap construction; (iii) design of works in the middle basin to reduce erosion and stablilize river banks and implementation of a portion of those works; (iv) tree planting and maintenance in the upper stream including pugu forest; (v) solid waste recycling in and collection in riverside communities; (vi) support to monitoring, conserving and rehabilitating the mangrove area as part of the park management in the lower basin. It is important to note the work will not support the broader initiatives of Tanzania Forest Service in managing the Pugu Kaimzumbwi Forest reserve. There will be targeted tree planting that may be undertaken in the Forest Reserve and the watershed management plan when completed will provide suggestions on how the Tanzania Forest Service (TFS) can better manage the reserve for purposes of watershed management and consistent with the vision of the Msimbazi Special Planning Area. 8. Coordination Mechanisms: The works phase of the project will begin in the next few months with the construction of the Jangwani bridge followed by the earthworks and bus depot which are under bidding. It was agreed PORALG would establish the coordination mechanisms for the infrastructure component. PORALG will also undertake training to go over the project works and related requirements related to Environmental and Social Standards. In addition, to a technical committee for infrastructure coordination, a committee for watershed management and one for the management (planning and institutional arrangements) of the lower Msimbazi would be established. 9. Activities in Response to infrastructure damage during the El Nino Rains and Tropical Hidaya Cyclone: Since the last implementation supervision mission, the Government of Tanzania has requested to activate the Contingency Emergency Response Component (CERC) to financing the rehabilitation of $30 million in transport infrastructure in Dar es Salaam. It also has identified an additional $21 million in needs in Dar es Salaam that need to be financed. This later amount was initially proposed to be financed through an additional finance using IDA Crises Response Window through the RISE project but instead will be accommodated within the Msimbazi Basin Development Project, making an estimated $51 million of financing that will be temporarily diverted to respond to the emergency. 10. Co-financing and financing gap: The project is co-financed by the Government of the Netherlands through Invest International and the Government of Spain. The former co-financing has been approved while the later is in the final stages of negotiation. The total estimated financing gap (taking into account the actual and anticipated co-financing) for the project is anticipated to be $71 million ($20 million for resettlement compensation, and $51 million diverted for emergency works). It was agreed with the Ministry of Finance that the financing gap will be filled at the beginning of the next IDA cycle which starts July 1, 2025 using the numbers available at that time. To incorporate the co-financing and implement this agreed approach to fill the financing gap, it will be necessary to undertake a restructuring in the near future and an additional finance in July 2025. PORALG and the Ministry of Finance will need to request these two restructurings. Annex 1: Agreed Actions for Next Implementation Support Mission (scheduled for February 2025) Agreed Actions Begin implementation of the livelihood restoration plan. Complete compensation payments and remedial payments for past payments in compliance with ESS 5. Completion of a proposal for replacement housing for in-kind PAPs Completion of ESIA for lower Msimbazi and SESA. Undertake training on ESS before construction begins. Submit the vision of the MSPA for review and no objection of the World Bank. Formation of technical working groups for infrastructure, MSPA management and watershed management Signing of contracts for bridge construction and supervision. Bidding of technical assistance for watershed management. Bidding of design for middle basin works. Contracting of community based solid waste management programming and finalize arrangements for results based financing for general collection services. Bidding of earthworks contract, watershed equipment. Contracting of emergency works. Signing of agreement with the Government of Spain for co-financing Restructuring of project to accommodate co-financing, resettlement financing and emergency works. Annex 2: Estimated Financing Plan for IDA resources to accommodate emergency works and resettlement financing gap Activity Estimated value Where it will be Re-embursement to allocated Msimbazi as part of additional finance Tanroads emergency 21 million To be implemented 21 million activities in Dar es under component 1 of Salaam originally the Msimbazi Basin programmed for IDA Development Project Contingency Emergency Response Window (CRW) Tanroads emergency 30 million To be implemented 30 million activities in Dar es under the CERC Salaam programmed component of for Contingency Msimbazi Basin Emergency Response Development Project Component Resettlement 20 million (to be To be implemented 20 million financing gap updated based on under component 2 of latest rates) the Msimbazi Basin Development Project Annex 3: Agenda Key goals and topics of implementation supervision mission: • Review the status of financing for the project including the co-financing and arrangements for payment of outstanding resettlement compensation. • Review overall progress including compliance with legal covenants, staffing, updating indicators, procurement plans, available financing, and disbursement projections. • Review status of initial works: Status of procurement of initial works, construction supervision and coordination and implementation of resettlement plan. • Msimbazi Special Planning Area Management: Status of agreed vision, procurement of consultancy to undertake the legal due diligence to establish the institution, status of planning consultancy, development controls during resettlement and construction. • Upstream interventions: Planning for launching of these activities including litter management, water quality monitoring, approach to watershed management plan, instrumentation, and modelling support. Time Meeting Presenters Monday August 12 9:00-12:30 Field visit to selected project site All 1:30-2:30 Kick off Meeting with PORALG PCT, WB Tuesday, August 13: Plenary Session with all project agencies- Day 1 09:30 – 10:00 General Introductions, review agenda PCT, WB 10:00 – 10:30 Updates on team staffing, composition and PORALG-PCT, TANROADS-PIT new members. and DCC-PIT 10:30 – 11:00 Tea break 11:00 – 12:00 Overview of Status of Project, milestones PCT-PORALG financing, disbursement and procurement activities Status of Initial Works 12:00-12:30 Resilient Transport Infrastructure Component TANROADS-PIT (bridge) (Jangwani Bridge and Dart Bus Depot) design PORALG-PCT and DART (BRT and ESIA-RAP depot) 12:30-13:00 Resettlement flood prone communities DCC-PIT PORALG-PCT 13:00-14:00 Lunch 14:00-15:00 Flood Control Interventions design, bidding DCC-PIT docs and ESIA for Lower Msimbazi PORALG-PCT 15:00-15:30 Coordination with Jangwani Market Regional Commissioners office 15:30-16:00 Updated schedule PORALG-PCT 16:00-17:00 Infrastructure Coordination Open discussion Wednesday, August 14: Plenary Session with all project agencies- Day 2 Management of Msimbazi Special Planning Area 09:30 – 10:30 Vision of MSPA, version discussed with PORALG-PCT Steering Committee (to be submitted to the World Bank) 10:30-11:00 Tea break 11:00 – 12:00 Status of process of land use planning, real PORALG-PCT; DCC-PIT estate development and development controls 12:00 – 13:00 Status of development of MSPA institutional PORALG-PCT; DCC-PIT agency Coordination of planning work. Open discussion Technical Meeting on ESS- Parallel Session 9:30-13:00 ESCP and resettlement, staffing WB-PCT 13:00-14:00 lunch Procurement Discussion 14:00-14:45 Status of procurement and key procurement PORALG-PCT issues Watershed Management Interventions 14:45 – 15:30 Status and plan for sand traps, PORALG-PCT instrumentation, water quality and modelling support. 14:30-16:00 Scheduling and plan for watershed PORALG-PCT management plan, Pugu reforestation and mangrove plan. Coordination on watershed management Open discussion Thursday, August 15: Meeting with MOF and WB-PCT meeting on real estate 9:00-11:00 Reserved for Meeting with MOFP MOFP, PCT, WB 12.00-1.00 Meeting with TFS- TBC PCT, WB 15:00-17:00 Discussion on Real Estate development PCT, WB -Transaction consultancy -Affordable Housing -Discussion on Real Estate workshop Friday, August 16 TBD Meeting on Project budget FM-PCT and WB Monday August 19 TBD Discussion on Selander bridge analysis and WB-PCT; CDR (TBC) ESIA Tuesday August 20 15:00-17:00 Discussion on affordable housing delivery PORALG-PCT; NHC, TBA and pm under msimbazi Watumishi; WB team Thursday August 22 12:00-14:00 Discussion on financing gap and emergency PST- Ministry of Finance, World activities Bank Annex 4: Participants list S/N Name Position Organization 1. Deputy Permanent Secretary- Eng. Rogatus Mativila Infrastructure PORALG 2. Eng. Humphrey Kanyenye PC PORALG 3. Eng. Nyariri Nanai SPC PORALG 4. Eng. Jovin B. Bujulu Procurement Expert PORALG 5. Beatrice Mchome NESA PORALG 6. Telesphor Nyoni Ag. DID PO RALG 7. Wilson Shimo Ag. DRA PO RALG 8. Hamis A. Mukunga ADLG-HR PO RALG 9. Imaculata Senje Asst. Director MLHHSD 10. Akonda Mwangunga Enveironment officer TANROADS 11. Leonard Ngayungi Engineer TANROADS 12. Deogratius F. Masawe Valuer Kinondoni MC 13. Mkelewe Tungaraza APC Kinondoni MC 14. Evance Nyakiema M&E Kinondoni MC 15. Agatha A. Mateo SCDO Kinondoni MC 16. Mohamed Msangi EMO Kinondoni MC 17. Fatuma Majengo Engineer Kinondoni MC 18. Latifa R. Almas HR Kinondoni MC 19. Maulidi Kiumulio CDO Kinondoni MC 20. Benjamin Mboya Engineer DCC 21. Jeremiah Tugara A/C DCC 22. Celestina Rugeyasila APC DCC 23. Alfred Mbyopyo TPO DCC 24. Sovela Elia PSO DCC 25. Alberty Kagiullo PSO DCC 26. Laila Mwakalukwa IS DCC 27. Ramadhani Shomari IT DSM 28. Delfina Mathias STP DART 29. Nason Bwatota TPO DART 30. Francis Mwasota Engineer TANROADS 31. Leonard Ngayngi TANROADS S/N Name Position Organization 32. Charles Mariki Urban Planner TARURA/WBCU 33. Mariam Rajabu Finance TARURA/WBCU 34. Adam Mbeyela PECON TARURA/WBCU 35. Dina Augustino SHRO TARURA/WBCU 36. Johnson Meela PLO TARURA/WBCU 37. Agness Kishenyi PSO TARURA/WBCU 38. Eng. Erenei Umali Engineer TARURA DSM 39. Mwamaso, A. A. STP TARURA/WBCU 40. Salama M. Bakari Engineer TARURA/WBCU 41. Rabson Sailo PO TARURA/WBCU 42. Oswald Kasambala Engineer TARURA/WBCU 43. Eng. August Mbuya Engineer TARURA/WBCU 44. Gabriel Hango SFMO TARURA/WBCU 45. Hezron Duguda PSO TARURA/WBCU 46. Raphael Kilapilo SLO TARURA/WBCU 47. Elizabeth Anatory Valuer TARURA/WBCU 48. Marco Chacha EHO TARURA/WBCU 49. Abdon Mapunda SWMO TARURA/WBCU 50. Grace Benjamin SO TARURA/WBCU 51. Bernard Eric CAA TARURA/WBCU 52. Ariff Almas Engineer TARURA/WBCU 53. John Morton Sr. Urban Specialist World Bank 54. Emil Mathew Social Development Specialist World Bank 55. George Kimaro Environmental Specialist World Bank 56. Boris V. Zanten DRM Specialist World Bank 57. Eng. Muindi Musyangi Engineer World Bank 58. Felician Komu Consultant World Bank 59. Rachel Singo Communications Consultant World Bank 60. Andrey Shanin Urban Specialist World Bank 61. Mwikali Wambua Sr. Social Development Specialist World Bank 62. A.N.M. Mustafizur Rahman Senior Procurement Specialist World Bank 63. Emmanuel Maliganya Procurement Specialist World Bank S/N Name Position Organization 64. Eng. Mussa Natty Sr. Urban Resilience Consultant World Bank 65. Gladness Rwejumura Transport Analyst World Bank 66. Gaspar Mashingia Social Expert World Bank 67. Nyambiri Kimacha DRM Consultant World Bank 68. Paulina Proches Program Assistant World Bank