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Document of

The World Bank

FOR OFFICIAL USE ONLY

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MEMORANDUM AND RECOMMIENDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THIE

EXECUTIVE DIRECTORS

ON A

PROPOSED LOAN/CREDIT

1Ni THE ANIOUINT EQUIVALENT TO US$11.5 MILLION

TO

THE COMMONWEALTH OF DOMINICA

ST. KITTS AND NEVIS

ST. LUCIA

ST. VINCENT AND THE GRENADINES

FOR A

SOLID WASTE MANAGEMENT PROJECT

April 13, 1995

Enmironment and Urban Development DivisionCountry Department IIILatin America and the Caribbean Region

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

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CURRENCY EQUIVALENTS

Currency Unit = Eastern Caribbean Dlollar (EC$)

IllC$ = US$0.37I US$ = EC$2.70

WEIGHTS AND MEASURES

I mcter (m) - 3.28 fect (ft)I kilometcr (kim) = 0.62 mile (ml)I square kiloeiicter (kr'n) 0.386 squarc miles (sm)1 hectare (ha) = 2.47 acres (acdI metric ion (ni ton) = 2.205 pounds (Ibs)

ACRONYMS AND ABBREVIATIONS

CARICOM - Caribbean CommunityCDIB - Caribbean Development B3ankCFl]I - Caribbean Environmental Hiealth InstituteCIDA - Canadian International Development

AgernyE113 - Furopeai. Investment BankEIRR - Economic Internal Rate of ReturnENCORE - Eastern Caribbean-Environmental and

Coastal Resources ProjectEU - European UnionGDP - Gross Domestic ProductGEF - Global Environmental FacilityGET - Global Environment Facility Trust FundGTZ - Germany's Development AgencyIC&I - Industrial. Commercial & InstitutionalICB - International Competitive BiddingIMO - International Maritime OrganizationLU - Legal Unit of the OECS SecretariatMARPOI, - International Convention for the Prevention

of Marine PollutionMEPC - Marine Environment Protection CommitteeMOIl - Ministries of HealthMOW - Ministries of WorklsNRMU - Natural Resources Management Unit of the

OECS SecretariatOAS - Organization of Arnerican StatesOECS - Organization of Eastern Caribbean StatesPMU - Project Management UnitPIU - Project Implementation UnitPAHO - PanAmerican Health OrganizationSDR - Special Drawing RightsUNEP - United Nations Environmental ProgramUSAID - U. S Agency for International DevelopmentWASA - Water and Sewerage AuthorityWCISW - Wider Caribbean Initiative for Ship-

Generated Waste

FISCAL YEAR

Dominica July I to June 30St. Kitts January I to December 31St. Lucia April I to March 31St. Vincent January I to December 31

FOR OFFICIAL USE ONLY

ORGANIZATION OF EASTERN CARIBBEAN STATESSOLID WASTE MANAGEMENT PROJECT

LOAN/CREDIT AND PROJECT SUMMARY

Borrower: The following OECS countries:- Commonwealth of Dominica (Loan/Credit)- St Kitts and Nevis (Loan)- St Lucia (Loan/Credit)- St Vimcent and the Grenadines (Loan/Credit)

ImplemninAgezlcy: National Solid Waste Management Entities and the OECS

Secretariat.

Beneciaries: 1!The Ministries of Health and Port Authorities of theGovernments of the OECS countries listed above.

Poverty: Not Applicable.

Lean/Credit Amounts: US$11.5 million including a Credit of US$4.7 millionequivalent, for Dominica (US$0.6 m Loan and US$0.6 mCredit), St. Kitts and Nevis (US$2.1 m Loan), St. Lucia(US$2.3 m Loan and US$ 2.3 Credit), St. Vincent and theGrenadines (US$1.8 m Loan and US$1.8 m Credit).

Tenns and Conditions: IBRD Loan: repayment in 15 years for St. Lucia and St.Kitts and Nevis, 17 years for Dominica and St. Vincent andthe Grenadinie. all including five years of grace, at thestandard variable interest rate. IDA Credit: Standard, with 35years maturity and 10 years grace.

CommitmentFee: IBRD Loan: 0.75% on undisbursed loan balances, beginning

60 days after signing, less any waiver.IDA Credit: 0.50% on undisbursed credit balances, beginning60 days after signing, less any waiver.

Plan: See Schedule A.

Net PresentValue: Not applicable

Staff Appraisal Report: Report No. 13554 LAC

map: IBRD 22077R

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MEMORANDUM AND RECOMMENDATION OF THE, PRESIDENT OFTHE INTERNATIONAL BANK FOR RECONSTRUCTIONAND DEVELOPMENT TO THE EXECUTIVE DIRECTORS

ON PROPOSED LOANS AND CREDITS TOTHE GOVERNMENTS OF FOUR MEMBER COUNTRIES

OF THE ORGANIZATION OF EASTERN CARIBBEAN STATESFOR A SOLID WASTE MANAGEMENT PROJECT

1. I submit for your approval the following memorandum and recommendationson four proposed loans and three development credits to the Commoniwealth ofDominica (US$600,000 loan and SDR 450,000 credit equivalent to US$600,000), St.Kitts and Nevis (US$2,130,000 loan), St. Lucia (US$2,280,000 loan and SDR1,600,000 credit equivalent to US$2,280,000) and St. Vincent and the Grenadines(US$1,810,000 loan and SDR 1,300,'J00 credit equivalent to US$1,810,000), to helpfinance a project for solid waste management. The loans would be at the Bank'sstandard variable interest rate, with a maturity of 17 years except in the case of St.Lucia, where it would be 15 years. The development credits would be on standardIDA terms with a maturity of 35 years. Separately, grants in the amount of SDR8.8million (US$12.5 million equivalent) from the Global Environment Facility TrustFund (GET) are proposed for approval, subject to the approral of the proposedIBRD/IDA financed project.

2. Background. The countries of the Organization of Eastern Caribbean Statesare small island economies with fragile ecosystems. The economies have performedreasonably well in recent years with an average growth rate in GDP of 2.0% and percapita GNP of less than US$4,000 in 1993 (except for Antigua and Barbuda and St.Kitts and Nevis). The economies are each dependent, to varying degrees, onagriculture (mainly bananas and sugar) and the tourism industry, which togetheraccount for the bulk of foreign exchange earnings in all of the countries. The qualityof the environment, and in particular that of the marine environment, is vital to theprosperity of these countries. It has, in recent years, come under increasing pressurefrom a number of sources, the main one being the indiscriminate dumping of solidwaste both by individuals on land and by ships at sea. Much of this solid waste endsup as marine debris washed up on the beaches, which could seriously impact theflourishing tourist industry which underpins these countries' economies. In addition,this marine debris is increasingly responsible for causing permanent damage to theunique and fragile coastal and marine ecosystems of the Caribbean Sea.

3. The Wider Caribbean Sea was in 1990 designated as a Special Area under theMARPOL Convention 73/78 (International Convention for the Prevention of MarinePollution) for Annex V wastes. This Annex effectively restricts the dumping of ship-generated solid waste into the international and teTritorial waters of the WiderCaribbean Sea. While only two of the six OECS countries are signatories toMARPOL Convention 73/78, all of the OECS goverrunents have agreed to provide

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facilities for the reception, treatment and disposal of ship-generated solid waste,which is covered under Annex V. The regulations governing provision of receptionfacilities within Special Areas state that Governments must undertake to provideadequate reception facilities for solid waste at all ports within a Special Area, takinginto account the special needs of ships operating in such areas. In this regard, cruiseships in particular have contributed heavily to the problem. Although some of thesolid waste is treated on-board, residual quantities of this solid waste must be dealtwith on shore.

4. Solid waste management services in all of the countries can be characterizedby the following: (i) fragmented institutional responsibilities for solid wastemanagement, and generally inadequate management control of the service; (ii) poorresource mobilization in the sector and little or no means for cost recovery for theservice; (iii) poor public awareness of the importance of solid waste management andundeveloped opportunities for waste recycling and management; (iv) shortage ofcollection equipment and inadequate provision for the maintenance of existingequipment; (v) inadequate provision for the treatment of pathogenic and otherdangerous wastes including contaminated food; and (vi) inadequate arrangement forthe final disposal of solid waste, frequently resulting in nuisance, air and waterpollution and subsequent environmental damage.

5. In view of the above, there is an urgent need to undertake improvements tothe waste management and disposal systems in all of the islands, and to equip theports and harbors with facilities to handle ship-generated solid wastes. The facilitiesthus established in the countries and at the project ports will also serve as a model forreplication in other countrics of the Wider Caribbean Region.

6. Project Objectives. The objective of this operation is to reduce public healthrisks and protect the environmental integrity of the islands and their coastal andmarine systems, by improving domestic solid waste management facilities andfacilitating compliance with the 'Special Area"' designation of the Caribbean Sea forMARPOL 73/78 Annex V wastes. A further objective is to significantly enhancepublic health and environmental quality by strengthening the countries' capacities toeffectively manage and dispose of solid waste in an enviromnentally sustainablemanner. More specifically project objectives are to assist the OECS governments to:(i) improve the coverage and effectiveness of domestic solid waste collection anddisposal facilities; (ii) reduce pollution of international and teritorial waters caused byship-generated solid wastes by improving the collection, treatment and disposal ofship-generated solid wastes; (iii) establish aupropriate legal and institutionalframeworks to enable effective management and disposal of shore and ship-generatedwaste; (iv) prepare sewerage masterplans and carry out feasibility studies forsewerage and sewage collec.tion, treatment and disposal improvement programs and(v) identify Regional opportunities for reduction, recycling, reuse and recovery ofwaste.

7. Project Description. The project is composed of a number of nationalcomponents which are similar for each of the OECS countries, and a regionalcomponent which covers issues common to all. The national components include: (i)establishment of a Solid Waste Management Entity with dedicated staff and equipmentas well as independent accounting procedures to safeguard the sustainability of theproject; (ii) development of new sanitary landfill sites for the disposal of solid wasteor the upgrading of existing dump sites to sanitary landfill facilities and the closure,redemption and reclamation of unsuitable and inappropriate existing dump sites (20%of total project costs); (iii) procurement of compaction and other operationalequipment necessary to assist in the correct management of solid waste at the newsanitary landfill sites (21 % of total project costs); (iv) provision of storage facilities toaugment the existing system for storage of domestically generated waste, particularlywhere curb-side collection systems are operated (3% of total project costs); (v)procurement of collection and transportation equipment to augment the existingsystems for the collection of solid waste and its transportation to the point of ultimatedisposal (27% of total project costs); (vi) provision of port reception facilities forship-and yacht-generated MARPOL Annex V waste, including waste receptacles andassociated civil works (2% of total project costs); (vii) the procurement of equipmentfor the appropriate handling of ship-generated solid waste both within the ports. andbetween ports and the disposal sites (7% of total project costs); (viii) procurement ofequipment for the effective treatmnent of hospital wastes (in three countries only -Antigua and Barbuda, St. Lucia and St. Kitts and Nevis) (5 % of total project costs);(ix) provision of cquipment to support efforts at extending opportunities for wasterecovery and recycling (including processing of recyclable material and composting)(4% of total project costs).

8. The regional component will focus on two specific areas as follows: (i)support activities and technical assistance to all OECS beneficiary countries for:project management; training and education; the introduction of common legalframeworks; development of recycling opportunities; assistance with the enforcementof MARPOL 73/78 Convention; and public awareness programs (7% of total projectcosts); and (ii) technical assistance for the preparation of sewerage master plans andof a program of immediate action priority sewerage and sewage treatment projects inall six OECS countries (4% of total project costs). In addition, project managementassistance will ensure that the project is implemented in a timely and efficient manner.The development of common legal frameworks will concentrate on the creation ofsuitable conditions to receive ship-generated waste, as well as the facilitation of itsproper transport and disposal, and the development of appropriate controls. Thetraining program will focus on the development of overall waste management skillsand in-port capabilities to control ship-generated waste as well as managementcapacity to ensure smooth operation of the reception, transport and disposal systems.A project monitoring and evaluation program will be developed to providemanagement with sufficiernt information to enable systematic evaluation of theefficiency of the institutions operating the systems, in terms of both operational and

financial parameters. Physical monitoring of the sanitary landfill sites will be carriedout by the Caribbean Environmental Health Institute (CEHI), or othcr suitablyqualified body, under agreements reached with each beneficiary country.

9. Project Implementation. National components of the Project will beimplemented by a Project Implementation Unit (PIU) in each country which forms apart of the Solid Waste Management Entities being established in each country withthe support of the Project. The Solid Waste Management Entities will operate withinthe overall jurisdiction of the Ministries of Health, and will implement the project inaccordance with Government and Bank guidelines. Certain of the port componentswill be implemented by the Port Authorities in each country. The regionalcomponents will be implemented by a Project Management Unit (PMU) to beestablished at the regional level under the control of the Director General of theOECS Secretariat, and within or alongside the Natural Resources Management Unit(NRMU) of the OECS Secretariat. This unit will also undertake overall co-ordinationand consolidated monitoring of the project. The PlUs to be established in eachcountry will be responsible for day-to-day management and supervision of the nationalcomponents. The PMU and the PIUs will utilize technical assistance support asrequired, to be provided by consultants contracted either individually by each country,or jointly through the OECS Secretariat. Technical experts will assist the PMU inimproving its technical capacity to improve waste management and project monitoringin the OECS countries. Equipment and civil works financed by IBRD/IDA/GET fundswill be procured according to Bank procurement guidelines.

10. The project is expected to become effective (commensurate with governmentshaving satisfied all conditions leading to effectiveness of their national components) inthe fourth quarter of FY95, completed (all project components fully implemented) byJune 30, 2000, and fully disbursed (all disbursements made by the Bank) byDecember 31, 2000. A mid-term review of the Project (about two and a half yearsfrom the date of effectiveness) will be carried out to evaluate progress ofimplementation against planned objectives. The time table of key project processingsteps are shown in Schedule C.

11. Project accounts will be maintained by the Ministries of Finance on behalf ofthe respective PlUs of each of the participating countries, for civil works, equipmentprocurement, and national technical assistance components. The OECS Secretariatwill maintain accounts for the regiornal component. Country accounts will beconsolidated in the Ministries of Finance and made available for inspection by theBank's supervision missions.

12. Monitoring and Evaluation. Monitoring and Evaluation will be carried outat two levels: (i) to determine progress of the project, and (ii) to monitor theefficiency of the newly formed solid waste management entities in performing againsttheir mandate according to national solid waste management plans.

13. For the project, the PIUs will prepare, and submit through the PMU for Bankreview, quarterly progress reports on the execution of the infrastructure works andprocurement of equipment. The PMU will be responsible for the consolidation ofquarterly reports from all project countries. Each fiscal year, the PIUs will prepare aprogress report of the preceding year and annual implementation plans for theforthcoming year based on the projected project implementation program and progresswill be evaluated against this plan. This plan will be finalized taking into accountBank's comments.

14. Monitoring of -he performance of the solid waste management entitiesthemselves will be carried over the duration of the Project. Every fiscal year,concurrently with the preparation of the annual budget, the gove-nments will preparea progress report of the preceding year's operations, and a detailed solid wastemanagement and maintenance program, and its funding, for the forthcoming year.The progress report for the preceding year and subsequent annual program includingfunding will be ftrnished to the Bank for review through the PMU by December 31of each year.

15. Project accounts, audited by an external auditing firm acceptable to the Bankin accordance with international auditing standards, will be prepared and submitted tothe PMU for onward transmittal to the Bank annually. The OECS governments willsubmit certified copies of the audited accounts to the Bank, through the PMU, nolater than three months after the end of the audited period.

16. The project is designed to include a set of key indicators to be used formonitoring and evaluation of both the project and the solid waste management systemas a whole to assess the impact of the project on the OECS countries and theCaribbean Sea, and to facilitate the introduction of adjustments when necessary.Development of these criteria and their adoption would form part of the regionalcomponent, but suitable indicators for the overall project would include: (a)adherence to collection schedules; (b) equipment downtime and reasons; (c) frequencyand nature of public complaint; (d) coverage by system; (e) cost per ton of disposal;and (f) employee performance, absence etc. For the maritime component specifically,the volume and characteristics of wastes landed (including composition and whethercompacted or sterilized etc.) would be closely monitored and measured throughout theperiod of implementation, and database of this information would be established ineach country and at the PMU for the region; (there is no data available on wastelanded on the islands from ships and yachts at present). The degree of compliance byships with the regulations of MARPOL 73/78 Convention would also be closelymonitored. In addition, through the education element of the regional component,community and NGO involvement in beach clean-up campaigns would be encouragedto provide data on the impact of the project on marine debris landing on the beachesof the region.

17. Project Cost and Financing. The total cost of the Project is estimated atUS$50.5 million including IBRD US$6.8 million; IDA US$4.7 million equivalent;GET US$12.5 million equivalent; CDB US$8.7 million; EIB US$6.4 million; EUUS$1.9 million; and National Governments US$9.5 million. The foreign exchangecomponent totals about US$32.7 million, including IBRD US$6.3 million and IDAUS$4.3 million equivalent mostly for equipment, material and supplies. Details areshown in Schedule A.

18. Project Sustainability. Project sustainability rests on the overall commitmentof the respective govermments to the environment. However, the project is designed tobe self-sustaining. Specifically, the project will support the adoption of an appropriatelegal framework to deal with land and ship-generated solid waste, provide institutionalstrengthening, support waste minimization and recycling, introduce cost recoverymechanisms, encourage private sector participation in waste management, andstimulate public awareness through media exposure and education programs. Financialsustainability will be achieved through the introduction of independent financingarrangements for the solid waste management system. In particular, the project will:(i) introduce an environmental levy of US$1.50 to be imposed on all visitors to theislands; (ii) maintain current levels of government contributions to the solid wastemanagement sector; (iii) make use of any revenues generated from the proposedrecycling programs; and (iv) introduce tipping fees at landfill sites. The project has anexcellent chance of succeeding because of the support it has already received ontechnical as well as political grounds.

19. Lessons from Bank and IDA Involvement. This is the first Bank operationwhich addresses issues of solid waste management and marine pollution in the OECScountries. The project represents a considerable challenge as it involves six countriesand five sources of financing. Lessons learned from other experiences in the sectorhave been applied, most notably the "Ship Waste Disposal Project" in China (ReportNo. 9852-CHA). Specifically, attention has been paid to the integration of the ports'solid waste plans for collection, treatment and disposal of ship waste with that of thesolid waste management plans of the individual countries themselves, to constitute acomprehensive waste management program.

20. Rationale for iBR.D/IDA Funding. This project is being presented togetherwith the Country Assistance Strategy (CAS). The CAS emphasizes the need forenvironmental protection in the OECS countries. This project will help protect theenvironmental integrity of the island States. Therefore the projec. is fully consistentwith the CAS. The rationale for Bank ilivolvement in the proposed project is in itsrole as a catalyst in bringing together the six OECS countries to jointly address one ofthe most urgent environmental problems facing them, that is the contamination oftheir terrestrial environments and pollution of their coastal zones and the CaribbeanSea. The Bank is working closely with die OECS governments, regional agenzies andother international agencies to assist the OECS countries in developing a coordinated

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regional environmental strategy supported by action plans at both thc regional andnational levels. To that end, the Bank has been successful in mobilizing incrementalfinding for this operation through the Global Environment Trust Fund (GET),Caribbean Development Bank (CDB) and thc European Investment Bank (EIB).Project preparation was funded by the GET and by the Policy and Human RcsourcesDevelopment Fund 'PHRD) of Japan.

21. Procurement and Disbursement. Procurement of all contracts under theproject is designed on a parallel-financing basis and would follow the applicableguidelines of the inidividual financing agency. All items included in the countrycomponent will be procured through the Central Tender and Supplies Committee ofthe respective governments. Procurement of ports related items will be procured bythe respective ports authorities or the Central Tender and Supplies Committee of therespective governments, and items included in the regional component will beprocured by the PMU according to Bank's procurement guidelines. The Bankfinanced components would be procured as follows: (a) equipment and materia;purchase and civil works contracts costing US$100,000 or more would be procuredthrough International Competitive Bidding (ICB; total estimated value - US$16.4million); and (b) Limited (Regional) Competitive Bidding (RCB), acceptable to theBank Group, would be used to award contracts below these limits (total estimatedvalue - US$1.0 million). However, for equipment and materials procurement of lessthan US$50,000 and civil works contracts of less than US$100,000, InternationalShopping and Direct Purchase would be permitted on the basis of at least three pricequotations from at least two countries. Consultants would be recruited in accordancewith the Bank's guidelines using the Bank Sample Form of Contract for Consultants'Services. Details are shown in Schedule B.

22. The Bank will review ex-ante all procurement documentation under ICB(tender documents, bid evaluation and award recommendation). Contracts for goodsand works not exceeding US$50,000 equivalent, will be subject to ex-post-review bythe Bank. All other procurement documentation will be retained by the borrowersand subject to selective ex-post review by the Bank. Consultants contracts notexceeding US$25,000 equivalent would be subject to ex-post review by the Bank andthe Association.

23. All disbursements will be fully documented, except for payments againstcontracts valued at less than US$50,000 which would be disbursed on the basis ofstatements of expenditures (SOE). To the extent pcssible, all withdrawal applicationsshould be aggregated to no less than US$25,000. Supporting documents for amountswithdrawn on the basis of SOEs would be held in a central location (both in thecountry and with the PMU), and made available for review by auditors and visitingBank missions. Retroactive financing of up to 10% of the Loan and Credit would beconsidered provided that procurement was made according to Bank's guidelines.

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24. Agreed Actions. Agreement have been rcachcd with thc Borrowersconcerning the following kcy activitics (including the preparation and passage ofnecessary legislation/rcgulations) as conditions of effectivencss: (i) the acquisition (orlong tern lease) of all lands requirec lor solid waslc landfill sites (and associatedaccess), and transfer stations; (ii) the cstablishmcnt by all governments of a suitableinstitutional framework for managing the operation of the solid waste managementsystem; (iii) the amount and method for charging for the proposed environmentallevy; (iv) all waste management charging mechanisms; (v) the detailed arrangementsfor project implementation and monitoring; and (vi) the detailed scope of technicalassistance components including the preparation of sewerage masterplans. In addition,agreement between each of the OECS Governments and CEHI (or other competentbody) on the arrangements for the periodic monitoring of pollution at the solid wastelandfill sites is a condition of disbursement for development of the sites.

25 Poverty Category: Not applicable.

26. Environmental Aspects. Environmental Impact Assessments have beenprepared, and hydrogeological surveys undertaken for the proposed sanitary landfilldisposal facilities, in all countries. The focus of these assessments has been on theproposed landfill facilities. Project preparation entailed consultation with interestedparties, including non-governmental organizations (NGOs). Where necessary andappropriate, mitigation measures have been incorporated in the design of projectcomponents. An Environmental Assessment Summary Report on the project,submitted by the OECS countries, has been provided to the Board on December 1,1993.

27. Program Objective Categories. The Program Objective Category of thisproject is Environmentally Sustainable Development because it contributes to theenvironmental integrity of the island States.

28. Participatory Approach. Project preparation entailed extenisive consultationwith numerous individuals representing governments, port authorities, tourist industryoperators, cruise ship operators and non-governmental organizations (NGOs). Inaddition, public fora were used to share project information and foster discussionduring the appraisal of the project.

29 Project Benefits. By addressing the problems of terrestrial and marinepollution through the introduction of an appropriate waste management programsupported by sanitary lanJfill sites and facilities for the reception of ship-generatedsolid waste, it is envisaged that considerable health as well as economic benefits wilzbe realized by the beneficiary countries and the Region. The major economic benefitsall relate to the tourism industry and its impact on the economy of the islandcountries, which would otherwise be threatened by the worsening condition of theregion's beaches and countryside. Other benefits include a reduction of: (i) diseases

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associated with water contamination and rcsultant insect and vcrniin prolifcration; (ii)deterioration of the cnvironment due to rotting waste including visual and odornuisance, and air pollution; and (iii) rcruction in maintenance costs for road anddrainage resulting for reduced drain blockage from solid wastc.

30. Risks. The main risks relatc to the cffective operationi, coordination andmaintenance of the projcct components and cost recovery in six independentCaribbean countries. One risk is that on or more of the beneficiary countries will failto implement the institutional reforms proposed under the project and thus notadequately strengthen the institutional arrangements for solid waste management bothfor ship-generated waste and for land based waste. A further risk relate to the failureof beneficiary governments to introduce the appropriate level of tariffs needed tofinance the investments, including recurrent costs, associated with the proposed wasteplans as proposed under the project. A condition of effectiveness is that institutionaland cost recovery reforms proposed under the project will be adopted by allbeneficiary governments.

31. Recommendation. I am satisfied that the proposed loans and credits wouldcomply with the Articles of Agreement of the bank, and recommend that theExecutive Directors approve them.

Lewis T. PrestonPresident

by Sven Sandstrom

AttachmentsWashington, D. C.April 1995

Schedule APage 1 of 8

OECSSOLID WASTE MANAGEMENT PROJECTSUMMARY PROJECT COST ESTIMATES

(U.S.$ million)

Local Foreign Total % %Foreign Total

Exchange Base Case

National Component

Collection from ships 1.0 3.0 4.0 76 9Collection from shores 4.1 7.7 11.8 65 27Transfer Stations 0.5 0.5 1.0 50 2Recycling 0.6 1.5 2.1 71 5Landfills 7.6 9.5 17.1 56 39Medical Waste 0.7 1.7 2.4 71 6Dove Sanctuary 0.1 0.1 0.2 50 0

Sub Total 14.6 24.0 38.6 62 88

Regional Component

Support Activities 0.4 2.8 3.2 90 7Sewerage TA 0.2 1.8 2.0 90 5

Sub 'rotal 0.6 4.6 5.2 92 12

Base Cost Total 15.2 28.6 43.8 66 100

Physical Contingencies 1.3 1.6 2.9 55 7Price Continger ies 1.3 2.5 3.8 65 8

Total 17.8 32.7 50.5 65 115

Financing Plan (a)(US$ miillion)

Funding Antigua Dominica St. St. St. Grenada TOTALSource Kitts Lucia Vincent

GET l 1.9 1.5 1.9 2.5 2.3 2.4 12.5

IBRD 2 0.6 2.1 2.3 1.8 6.8

IDA 2 0.6 2.3 1.8 4.7

CDB 1.2 1.9 2.0 1.9 1.7 8.7

EIB 4.2 2.2 6.4

EU 1.9 1.9

Govt 3 1.5 1.0 1.6 1.7 2.0 1.7 9.5

TOTAL 7.6 6.8 7.5 10.8 9.8 8.0 50.5I Based on the actual cost of maritime, maritime related, and regional components and the

sewerage technical assistance component for each country.2 IBRD/IIDA blended at 50% (except for Antigua and Barbuda - ineligible for IBRD and IDA

funds, and St Kitts and Nevis - ineligible for IDA funds).3 Govemment equity comprising: (i) government taxes and duties on equipment, and (ii) land to

be acquired for landfill sites etc.


FINANCING PLAN (b)(US$ million)

Antigua Dominica Grenada

Local Foreign Local Foreign Local Foreign

Govt. 1.47 - 1.02 - 1.75 -

GET 0.23 1.70 0.14 1.32 0.24 2.12

IDA - - 0.03 0.56 - -

IBRD - - 0.04 0.55 - -

CDB - - 0.08 1.10 0.90 0.80

EIB 0.86 3.32 - - 0.11 2.04

EU - - 1.32 0.60 - -

Total 2.56 5.02 2.63 4.13 3.00 4.96

St. Kitts & St. Lucia St. VincentNevis & The

Grenadines Total

LoCal Foreign Local Foreign Local Foreign Local Foreign Grand

Total

Govt. 1.58 - 1.73 - 1.98 - 9.53 - 9.53

GET 0.12 1.80 0.08 2.37 0.09 2.24 0.90 11.55 12.45

DDA - - 0.25 2.03 0.12 1.70 0.40 4.29 4.69

IBRD 0.09 2.04 0.24 2.04 0.12 1.69 0.49 6.32 6.81

CDB 0.80 1.11 1.20 0.76 1.21 0.68 4.19 4.45 8.64

EM - - - - - - 0.97 5.36 6.33

EU - - - - - - 1.32 0.60 1.92

Total 2.59 4.95 3.50 7.20 3.52 6.31 17.80 32.57 50.37


ESTIMATED PROJECT COST(U.S.$ million)

ANTIGUA AND BARBUDA

Local Foreign Total

National Component

Collection from ship 0.25 0.58 0.83Collection from shore 0.37 1.07 1.44Transfer Stations - - -Recycling 0.09 0.24 0.33Landfill 1.20 1.39 2.59Medical Waste 0.27 0.60 0.87

Sub Total 2.18 3.88 6.06

Regional Component

Support Activities 0.07 0.30 0.37Sewerage Technical

Assistance 0.01 0.14 0.15

Sub Total 0.08 0.44 0.52

Base Total 2.26 4.32 6.58

Physical Contingencies 0.18 0.24 0.42Price Continger-cies 0.12 0.46 0.58

Total Cost 2.56 5.02 7.58

Local Foreign Total

Financing Plan

Govemment of Antigua 1.47 - 1.47GET 0.23 1.70 1.93IDA IBRDCDBEIB 0.86 3.32 4.18

Total 2.56 5.02 7.58



DOMNICA

Local Foreign Total

National Component

Collection from ship 0.04 0.48 0.52Collection from shore 0.31 0.67 0.98Transfer Stations 0.36 0.39 0.75Recycling 0.09 0.24 0.33Landfill '.16 1.44 2.60Medical Waste - - -

Sub Total 1.96 3.22 5.18

Regional Component



Sub Total 0.08 0.53 0.61

Base Total 2.04 3.75 5.79

Physical Contingencies 0.25 0.22 0.47Price Contingencies 0.34 0.16 0.50

Total Cost 2.63 4.13 6.76

Loal Ford Total

3indg Plan

Government of Dominica 1.02 - 1.02GET 0.14 1.32 1.46IDA 0.03 0.56 0.59IBRD 0.04 0.55 0.59CDB 0.08 1.10 1.18EIB - - -EU [.32 0.60 1.92

Total 2.63 4.13 6.76



GRENADA

Local Foreign Total

Nadonal Component

Collection from ship 0.22 0.47 0.69Colleion from shore 0.70 1.13 1.83Transf..1 Stations 0.13 O.i4 0.27Recycling 0.12 0.24 0.36Landfill 1.19 1.42 2.61Dove Sanctuary 0.16 P.07 0.23

Sub Total 2.52 3.47 5.99

Regiona Component

Support Activitics 0.07 0.50 0.57Sewerge Technical


Sub Total 0.09 0.88 0.97

Base Total 2.61 4.35 b.96


Total Cost 3.00 4.96 7.96

Local Foreign Total

TiSandng Plan

Government of Grenada 1.75 1.75GET 0.24 2.12 2.36IDA - - -IBRDCDB 0.90 0.80 1.70EIB 0.11 2.04 2.15

Total 3.00 4.96 7.96



ST. KITTS AND NEVWS

Local Foreign Total

National Component


Sub Total 2.20 3.70 5.90

Regional Component

Support Activities 0.05 0.21 0.26Sewerage Technical 0.02 0.38 0.40

Assistance

Sub Total 0.07 0.59 0.66

Base Total 2.27 3.29 6.56


Total Cost 2.59 4.95 7.54

Local Foreign Total

Fiinancing Hlan

Government of St. Kitts 1.58 - 1.58GET 0.12 1.80 1.92IDA - -IBRD 0.09 2.04 2.13CDB 0.80 1.11 1.91EIB - - -

Total 2.59 4.95 7.54



ST. LUCIA

Local Foreign Total

National Component


Sub Total 2.92 5.11 8.03

Regional Component



Sub Total 0.14 1.16 1.30

Base Total 3.06 6.27 9.33


Total Cost 3.50 7.20 10.70

Local Foreign Total

Financing Plan

Government of St. Lucia 1.73 - 1.73GET 0.08 2.37 2.45IDA 0.25 2.03 2.28IBRD 0.24 2.04 2.28CDB 1.20 0.76 1.96EIB - - -

Tohtl 3.50 7.20 10.70

';' -v' .e. ' .



ST. VINCENT AND THE GRENADINES

Local Foreign Total

National Component

Collection from ship 0.16 0.40 0.56Collection from shore 1.08 1.92 3.00Transfer Stations - -Recycling 0.12 0.24 0.36Landfill 1.45 2.06 3.51Medical Waste

Sub Total 2.81 4.62 7.43

Regional Component

Support Activities 0.08 0.60 U.o5Sewerage Technical


Sub Total 0.13 1.00 1.13

Base Total 2.94 5.62 8.56


Total Cost 3.52 6.31 9.83

Local Foreign Total

Financng Plan

Government of St. Vincent 1.98 - 1.98GET 0.09 2.24 2.33IDA 0.12 1.70 1.82IBRD 0.12 1.69 1.81CDB 1.21 0.68 1.89EIB - - -

Total 3.52 6.31 9.83

Schedule BPage 1 of 8

SOLEOD WASTE MANAGEMENT PROJECT

Procurement and E,stimated Schedule of Disbursements

Antigua and Barbuda

Summary of Proposed Procurement Arrangements(USS million)

Procurement Method

ICB LCB Other NBF Total

Civil Works - - 0.2 2.0 2.2(IDAMR.D) - -

(GET) (0.2) - (0.2)

Equipment 1.3 0.1 3.0 4.4(IDAJMRD) -

(GET) (0.9) - (0.1) - (1.0)

Consultants 0.1 - - 0.3 0.4

a. TA(IDA/IBRD) - -

(GET)

b. Design/Sapervision(IDA/IBRD) -

(GET) (0.1) - (0.1)

Total* 1.4 0.3 5.3 7.0(IDAJIBRD)(GET)* (1.0) (0.3) (1.3)

ICB - International Competitive Bidding(equipment and major civil works)

LCB - Limited Competitive BiddingOther - International Shopping and Direct PurchaseNBF - Not included for funding by GEF, IBRD or IDA* - Net of Regional Component



Procurement and Estimated Schedule of Disbursements

Commonwealth of Dominica


Procurement Method


Civil Works - - 0.4 1.7 2.1(IDAIIBRD) - - (0.4) - (0.4)(GEI) - - -

Equipment 1.8 - 0.4 1.2 3.4(IDA/IBRD) (0.3) - (0.3) - (0.6)(GET) (0.6) - (0.1) - (0.7)

consultants 0.2 - 0.1 0.3 0.6

a. TA(IDAILRD) - - - - -

(GET) - - - - -

b. DesignaSupervision(IDA/IBRD) (0.1) (0.1) - (0.2)(GET) (0.1) - - - (0.1)

To*al* 2.0 0.9 3.2 6.1(IDA/IEBRD) (0.4) (0.8) (1.2)(GET)* (0.7) (0.1) (0.8)


LCB - Limited Compeitive BiddingOther - International Shopping and Direct PurhaseNBF - Not included for funding by GEF, IBRD or IDA* - Net of Regional Component


SOLMD WASTE MAiNAGEMENT PROJECT

Procurement and Estimated Scbedule of Disbursements

Grenada


Procurement Method

ICB LCB Other NB.F Total

Civil Works - - - 2.4 2.4(IDA/IBRD) -

(GET) - - -

Equipment 1.2 - 0.2 2.5 3.9(IDAJIBRD) - - -

(GET) (0.9) (0.2) -(1.1)

Consultants 0.1 - - 0.4 0.5

a. TA - - - - -(IDAJ]BRD) - - - - -

(GET) - - - -

b. Design/Supervision - - - -

(IDAJMRD) - - - -

(GET (0.1) - - - (0.1)

Totul 1.3 0.2 5.3 6.8(IDA/IBRD)(GET)* (1.0) (0.2) (1.2)

ICB - latemational Compeitve Bidding(equipment and major civil works)

LCB - Limited Competitive BiddingOther - InTernarional Shopping and Direct PrchaseNBF - Not included far funding by GEF, IBRD or IDA* - Net of Regional Component




St. Kitts and Nevis

Summary of Proposed Procurement Arrangements(US$ million)

Procuremnt Method


Civl Works - - 0.2 1.7 1.9(IBRD) - - (0.2) - (0.2)(GE) - - _

Equipment 3.3 - 0.4 0.7 4.4(IBRD) (1.4) - (0.3) - (1.7)(GE) (1.0) - (0.1) - (1.1)

Consultan 0.2 - 0.1 0.2 0.5

a. TA(IBRD)(GET) - - - -

b. Design/Supavision(IBRD) (0. 1) - (0. 1) - (0.2)(GET) (0. 1) - - - (0.1)

Total. 3.5 - 0.7 2.6 6.8(IBRD) (1.5) - (0.6) - (2.1)(GET) (1.1) - (0.1) (1.2)

ICB - Intemational Competitive Biddiag(equipment and major civil works)

LCB - Limited Competitive BiddingOther - Internraional Shopping and Direct PurhaseNBF - Not included for funding by GEF. EBRD or IDA* - Net of Regional Component

Schedule BPage S of 8

SOLID WASTE MANAGEIVIMENT PROJECT

Procuremtnt and Estimated Schedule of Disbursements

St. Lucia


Procurement Method


Civil Wors- 0.2 2.3 2.5(IDA/IBRD) (0.2) - (0.2)(GFIT)

Equipmect 5.7 - 0.3 6.0(IDA/IBRD) (3.8) . (0.2) (4.0)(.ET) (1.0) (0. 1) - (1.1)

Consulan 0.4 0.1 0.3 0.8

a. TA(IDAIIBRD) - - - -

(GET)

b. Design/Supervision(IDA/IBRD) (0.3) - (0.1) - (0.4)(GET) (0.1) - - - (0. 1)

Total 6.1 - 0.6 2.6 9.3(IDAIlBRD) (4.1) - (0-5) - (4.6)(GEr)* (1.1) - (0.1) (1.2)

ICB - lnternational Compeitive Bidding(equipment and major civil works)

LCB - Limited Compeitive BiddingOther - ntnational Shopping and Direct PurhaseNBF - Not included for funding by GEF, IBRD or IDA

- Net of Regional Component


SOLD WASTE MANAGEMENT PROJECT


St. Vincent and the Grenadines

Surnmary of Proposed Procurement Arrangements(USS million)

Procurement Method


Civil Works - - 0.1 2.5 2.6(IDAIRD) - - (0.1) - (. 1)(GET)

Equipment 4.9 - 0.3 - 5.2(IDAIBRD) (3.0) - (0.2) - (3.2)(GET) (0.9) - (0.1) - (1.0)

Consuwits 0.4 - 0.1 0.3 0.8

a. TA(IDA/IBRD) - - - -

(GET) - - - -

b. Design/Supervision(IMA/IBRD) (0.3) - (0. 1) - (0.4)(GET) (0.1) - (0.1)

Total 5.3 - 0.5 2.8 8.6(IDA/IBRD) (3.3) - (0.4) (3.7)(GET)* (1.0) (0.1) (1.1)


LC1; - Limited Competitive BiddingOther - Intenational Shopping and Direct PurchaseNBF - Not included for funding by C-EF, IBRD or IDA* - Net of Regional Component




Regional Component

Su=nuaz7 of Proposed Procurement ArrangementsCUSS million)

Procurement Method


Civil Works(IDA/IBRD)(GEl)

Equipment - - 0.1 - 0.1(IDA/IBRD) - - -

(GET) - (0.1) (0.1)

Consultants 3.5 - 2.2 - 5.7

a. TA(IDA/IBRD) - - -

(GET) (3.4) - (2.2) (5.6)

b. Design/Supervision(IDAIIBRD) -

(GET) - -

Total 3.5 2.3 5.8(IDAIIBRD)(GET) (3.4) (2.3) (5.7)

ICB - Terationl Competitive Bidding(intrnational consultants)

LCB - Limited Competitive BiddingOther - International Shopping and Direct PurchaseNBF - Not included for funding by GEF, IBRD or IDA


TOTAL PROJECT ESTIMATED DISBURSEMENT(US$ million)

IBRD Fiscal Year 1995 1996 1997 198 1999 2000

OECS Governments

Annual 1.0 4.0 2.0 2.0 0.5 0.0

Cumulative 1.0 5.0 7.0 9.0 9.5 9.5

IBRD

Annual 0.5 2.0 2.0 1.5 0.5 0.3

Cumulative 0.5 2.5 4.5 6.1 6.6 6.8

IDA

Annual 0.3 1.5 1.0 1.0 0.6 0.3

Cumulative 0.3 1.8 2.8 3.8 4.4 4.7

GET

Annual 0.5 4.0 4.0 2.0 1.5 0.5

Cumulative 0.5 4.5 8.5 10.5 12.0 12.5

CDBAnnual 0.3 2.3 2.5 2.0 1.6 0.0

Cumulative 0.3 2.6 5.1 7.1 8.7 8.7

EIB

Annual 0.3 2.0 1.8 1.4 0.6 0.3

Cumulative 0.3 2.3 4.1 5.5 6.1 6.4

EU

Amual 0.2 0.3 0.5 0.5 0.3 0.1

Cumulative 0.2 0.5 1.0 1.5 1.8 1.9

Total

Annual 3.1 16.1 13.8 10.4 5.6 1.5

Cumulative 3.1 19.2 33.0 43.4 49.0 50.5

Schedu'e CPage 1 of I

OECSSOLID WASTE MANAGEMENT PROJECT

Timetable of Key Processing Events

(a) Timetable taken to Prepare: Fifteen months

(b) Prepared by: On behalf of the OECS Governments bythe Canadian Marine Waste ManagementCollaborative

(c) First Bank Mission: June 1991

(d) Appraisal Mission Departure: January 1994

(e) Negotiations: February 1995

(f) Planned Date of Effectiveness: July 1995

(g) List of relevant PCRS and PPARs: None

|;(tllltl21lllIl I)

Page I ol 2;iltLs' ,.r 1(if,Hak (4i(imip) Operunlionis in Ilie 0111W.I ;lllit) l.oansiiii II)A 0Cmliis lit lisc Olerailssii l'nrtrolio

(as nf Selilcsnilser 30, 1991)

DiITeiL'ncc L.ast AliJ'll SuieivisitonhcelmenLc acl,,al _ --

Fiscill i8i"A.Al!llimmi-fi-1 (l1151.$.!!! ;111(i expldCl& vl)CpCincillC OVeCa;I

Projcl 11) Ycnr flortowcr Plurplose 111111) II)A cnuucclations tJnulisbilfscdl hlibmi1scuuculIs Objeclives Sialuus

6DhlCPAOO2 1987 Duouinica Power 0,00 3.00 (0.0) 0.26 11!

6STKPAOOI 1991 St. Kilts & Agric. Dev'l 1.50 1.50 O.0l 1.22 S S

Nevis Supporl

69STlPA00S 1990 St. Ilicia Waler Spililply 2.50 5.20 0.OM( 1.65 S S

6STVPAOOS 1989 Si. Vliuccill Agric. Itchah. & I.4( 1.410 (In) 0.913 S SDlvcrsflcnilmii

6C1 (A00)9 1987 CDI) CDn IV/Rcgioniul 6.() 0.() 0CX) 0.6(0 U SVocallossal

6CRI]PAOO't 1990 CDnnI CDII V/Oilier 20.0) 10.() 0.1W) 0.)O0 S S11iinticlal

6CIlDPAOIO I99'1 Cl)l) CDnn VI/OllIer 2() 11.1) I).IN) 31.00 SFinsancialI

Tolal DlslisbrsedI (IDR11 and IDA) bl 69.3of whiChi has bccis repaid

Tolal inow lield by. 111n1 aned IDAAIiiouiil Soli (0.0

or whlicih repaitl 0.0Tolal Unidiishuirsed

" Onlelilliang IlMio0if,l lisa Cililiboan l)cvcluipscisi lInuk (CI)Il). ijill:S (2'ii.lilwuismll Il;ihuaunl iousiiii ((:1D116) oulllil *.r liuc ()li('S t tuuuli iLcS I)juiuucl,ull hi;as as

orJl ise 30, 1994.V Incluellcs closedl Ccdllis ajisl IOallS.

SCEDULE DJP4W 2 of 2

OECS - Statement of EFC Investments(as of June 30, 1994)

AinouniUSS maillionsFiscal Year Ob1iUr Bus ess Loan Eui TotalW

DomkiDca

FY89 Fort Young (1986) Ltd. Tourism 0.0 0.7 0.7

Grenad

FY86 Issa Nicholas (Grenada) Tourim 2.3 0.0 2.3Limited

St. Lucza

FY91 Club St Lucia(Smuggleers Tourism 3.2 0.0 3.2V'ilage) Timited

Total Gross Commtments 'US 8.9 mIion

Tol Invesrnems now held by IFC USS 6.2 millin(including u=:disbursed balances)

IBRD 22077RUNITED e*o.

SB. ~~~~~STATESOF

AMERICA

-24S r I 24C-

THE CARIBBEAN AREAF I' X ; S

C. '_rURKCS and

\ CAthrA~tu HAITI < DOMINICAN virsqin tsisnei GnCCAICQ5 (UK(

- IN -^IIitAICA -$>> { S , J INTERNATIONAL BOUNDARIES

0 '4

N -' ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~VirginIfsIand (US) arnd (UK)YA AN(UK) H'AITI ',DOMINICAN

REPUBLIC '

JAMLAICA ST ,AAoS 'ANTIGUA ond BARBUDA

…F' cri~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~od NEVIS ¾

I ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Montuerraftt ~ aeoqe(RNil ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~(UK) udlpe()

IB E LII Z E J D OM IN IC A/GUATEMALA -

Jlig;=v0\r *1 )MfRINIque (cn) is'3C AA

-, ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~ST. LUCIAHONDURASNC A /O8 8 E A N E - HONDURAS ~' A A ST.VI.CENT , BARBADOS

J ~EL ~ J'- GRENADINES,SALVADOR rGRND AT AN7C

Arba (N,th) Cr;aoN (Net,I Z A E A A NICARAGUA -Banaire (N"ti)

TRINIDAD and TOBACGOQ C F- A /V

PA C/ F/c C

OCCA N ~~.COSTA

Amabo"l ., r.t,lurb ( w> , r

r~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ SURI^NAM E ,, s, .1 M. ftlld 90 ..A s

1811 -w l. t o r

p A ~~~~~~~~~~~~ *~~~~~~~~-~~~~~ ~~ R AK

Gulpo, \V E N S Z U N L A~~~~~~~~~~~~~~~~~~~~~~~~~OVWN.11

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