Transcript DR. Sateh NBC Surounding Areas

Presidency of the Council of Ministers
Recovery and Reconstruction Cell
Towards an Effective Partnership:
Development aid to the NBC surrounding areas
Sateh Chafic El-Arnaout, PhD
Chief Technical Advisor
Director of NBC Recovery and Reconstruction Cell
Presidency of the Council of Ministers
[email protected]
Outline



Background & Context
Supply of Development Aid
The Development Partnership
2
Background & Context
3
Development of NBC Surrounding Areas

Key pillar of both:
o
government strategy at the
Vienna donor conference;
o
government policy of
addressing under-served
areas in Lebanon

An influence area of 25 municipalities
around the NBC was identified based
on:
o
impact of conflict;
o
economic linkages;
o
road network;
o
topography
4
Geographic Endowment
Trade Corridor:

Located on current land and maritime and
future rail trade corridors to Iraq and Gulf
countries
Energy Corridor:

Located along land fuel supply line to the
future Beddawi oil refinery

Located along the future land gas supply
line to the Deir Ammar power plant
5
Economic Endowment


Local economy
that depends
on commerce,
agriculture and
fishing
Important
source of labor
to regional
economy in
Tripoli and
North Lebanon
1- Public Investments
2- Domestic Direct Investments
3- Labor
4- Tripoli service sector
5- Foreign Direct Investments
Syria, Iraq & Arab Gulf
North Lebanon
4
3
Tripoli
1
2
Beirut
5
6
Economic and Social Vulnerability
Economic :

Area heavily penalized due to direct and
indirect losses from three major events: (i)
closure of Syrian border and major access
road during July 2006 war, (ii) 2007 NBC
conflict and; (iii) 2008 conflicts in Tripoli

Area generates modest economic activities
(lowest ratio of loans to and lowest per
capita consumption in Lebanon)
Social:

High poverty rate (38%) as well as high
illiteracy & school drop-out rates

Highest inter-governorate inequality in
Lebanon (gap between rich and poor)
& 2.3% of children are underweight

Poor quality of social spending (teaching
quality and absence of vocational training)
7
Growth Pillars
Knowledge Economy:
o
Expected to benefit from
proximity to higher education
services (Lebanese University)
o
Benefits from proximity to
medical services in Tripoli
Agriculture
Tripoli Special
Economic Zone
Traditional Services:
o
Commerce
o
Agriculture
o
Fishing
Manufacturing:
o
Expected to better integrate in
the regional economy and to
benefit from Tripoli’s special
economic zone
8
Tripoli’s Special Economic Zone
Law enacted on September 5, 2008
Fiscal and Tax Incentives for companies
registered within TSEZ:

Custom duty and VAT waived for
goods destined to companies
registered within TSEZ.

Income tax waived for companies
registered within TSEZ.

Construction permit fee and
property tax waived for
companies registered within TSEZ.

Tax waiver for equity and bonds
issued by companies registered
within TSEZ.
9
Supply of
Development Aid
10
Targeted sector allocation (US$57.0million)
60%
Percentage (%)
50%
40%
19%
20%
14%
2%
3%
7%
4%
1%
1%
0%

Bulk of projects earmarked for
water/wastewater and livelihood
11
Good Implementation Progress
(US$57.0million)
Tendering
39%
On-going
11%
Completed
1%
Pipe line
49%

Almost 50% of project portfolio
is in implementation phase
12
Spatial allocation of development aid
in US$
12,000,000
8,000,000
4,000,000
0

Priority funds allocated to the six (6)
adjacent municipalities
Pre-vienna
Vienna
Total
13
Generous Donor Contribution
Distribution per Municipality
(total US$57.0 million)
Unallocated
18%
Bebnine
13%
Other villages
12%
Beddawi
19%
Muhammara
4%
Bhannine
4%
Minnieh
23%
Deir Ammar
7%

Almost 70% of funding allocated to
the six (6) adjacent municipalities
14
Balanced Allocation of Development Aid
1485
US$ /resident pop/villgae
1500
1000
500
893
457
438
420
286
271
55
73
423
329
367
237
110
132
220
110
220
224
110
44
11
19
0

Balanced funding allocation per
resident population
15
Burden Sharing of Implementation
Development Aid per Donor
(US$ 57.0 million)
31%
Percentage (%)
30
25%
20
9%
10
10%
8%
6%
4%
3%
1%
2%
0

Lead donors include Germany and
Kuwait that provided together
more than 55% of total funding
16
Project Impact
Unallocated
7%
Local projects
44%
Regional projects
55%

Equitable allocation of funding
among local and regional projects
17
The Development
Partnership
18
Going Forward

Projects to be aligned with
the National Land Use
Masterplan to be approved in
December 2008

Projects to complement
thearea’s Public Investment
Program to be approved midJanuary 2009

Projects to be sustainable and
to have limited O&M fiscal
burden on beneficiaries
19
DIRECT
IMPLEMENTATION
USAID
CHF
RI
MDTF
IBRD
MOI
DIRECT
FUNDS
MUNICIPALITIES
NGOs
INDIRECT
FUNDS
NBC SURROUNDING
MUNICIPALITIES
SECTOR
MINISTRIES
UN
GROUP
ITALY
ECHO
CDR
AFESD
GOV.
IMPLEMENTATION
LRF
ESFD
KUWAIT
FUND
GERMANY
KFW
20
Implementation Issues
•
Sub-sector overlap:
o
o
o
o
Local Economic Development
Municipal Capacity Building
Microfinance
Etc.

Varied methodological
approaches

Absorptive capacity of
municipalities & recipient’s
fatigue

Sustainability of projects and
fiscal burden on beneficiaries

Abortive efforts by donors in
project preparation
21
Role of Recovery and Reconstruction Cell

Coordinates with Municipalities, Sector
Ministries and CDR to identify demand

Coordinates on a regular basis with Gate
Keepers” and provides quarterly updates on
development aid on a GIS platform

Facilitates project cycle implementation by
donors (Identification - Design &
Implementation)

Work closely with CDR and MoF to gradually
hand-over monitoring mandate
22
Mapping of development projects
Data analysis will report at the following levels:









Donor
Sector
Beneficiary population (Lebanese vs. Palestinian)
Municipality
Financial
Implementation progress
Major implementation constrains
Lessons learned
Impact
Mapping of development projects
General Information
Commitments, disbursements and expenditures
Access serial number
Donor
Commitment
1st level implementer
Disbursement
Date
Balance
1st level implementer
expenditure
Date
Balance
%
Date
Project title
Description
Program Agreement
Project Funding
Funds Originated from
Pre-Vienna, Vienna, Post Vienna
Distribution of Funds by Type & Category
Window of funding
MDTF, GoL budget support, UNRWA budget
support, DDI
Type of assistance
Amount
%
Amount
%
Amount
%
Recovery
Reconstruction
Project Duration
Planned
(start date, end date)
Actual
(start date, end date)
Type of Funding
Implementation Status
In cash
Progress
In kind
Donors, Implementing agencies Contractors
Donor
Category of Funding
1st level implementer
Works
2nd level implementer
Goods
Contractor
Technical Assistance
Financial Information
Project Cost
Total
(US$)
Distribution of Funds across Sectors and Municipalities
Y1
Y2
Sector/Municipality
Distribution across sectors
Distribution across municipalities
%
25