Filename: Action fiche project Curacao EDF10 v5 Date June 9 2011

ACTION FICHE 10th EDF CURAAO

(DUTCH OCT)

EN

EN

Filename: Action fiche project Curacao EDF10 v5 Date June 9 2011

Action Fiche for Curaao (Dutch OCT) 1. IDENTIFICATION

Title/Number

URBAN INFRASTRUCTURE FOR SOCIALLY DEPRIVED COMMUNITIES

Total cost

EU contribution: The total EC amount is 11,25 M (47% of IP)

Aid method / Method of implementation

Project approach indirect centralized management via a Delegation Agreement (DA) between the Commission and SONA (Stichting Ontwikkeling Nederlandse Antillen)

DAC-code

16220

Sector

Low-cost housing

Filename: Action fiche project Curacao EDF10 v5 Date June 9 2011

2. RATIONALE 2.1 Sector context On 10 October 2010 Curaao gained autonomous status within the Kingdom of the Netherlands and the Netherlands Antilles ceased to exist. The government of the autonomous country of Curaao appointed the Prime Minister as Territorial Authorizing Officer (TAO) and the Minister of Economic Development as Deputy TAO (DTAO) on political level, while the Director of the Sector Foreign Economic Cooperation has been appointed as DTAO on administrative (operational /technical) level. The government confirmed the intention to utilize funds under the 10th EDF to extend the 9th EDF Urban Infrastructure Programme (UIP) that is now being implemented. During the 2010 - 2014 Governing periods, the Government is committed to achieve improvements of living standards and of social cohesion by improving the living conditions in socially deprived neighborhoods through infrastructure improvements. It is a key component of the Governments poverty alleviation strategy. The poor living conditions and the incidence of violence in neighborhoods in recent years has led to increased popular and policy concern. On the one hand violence may increases social poverty and reduces (sustainable) development; on the other hand an increase of (social) poverty can result in more violent behavior. When infrastructure is degraded through poor maintenance or lack of upgrading, investors will be more hesitant and tourists more reluctant to spend their holidays on an island perhaps perceived as violent. On these grounds the Government of Curaao decided to use 10th EDF funding to continue and expand the 9 th EDF Programme of Urban Infrastructure in Socially Deprived Areas , and focus on several deprived communities, some already identified by the 9th EDF Feasibility Study. The 10th EDF programme will consist of: 1: 2. Identified infrastructural upgrading by the Housing Foundation Curaao (Fundashon Kas Popular, FKP), which has already drawn up plans for infrastructure improvements. Upgrading of the already identified deprived areas of Kortijn and Nieuw-Nederland (9 th EDF Feasibility Study 2007 by WSP imc).

The proposed action is in line with EC Development objectives to promote economic and social development (of the OCTs) and is consistent with the 10th EDF Single Programming Document. The project intends to address the following problem. Low-income groups of the population are concentrated in sub-standard urban neighborhoods with dilapidated basic infrastructure, including water supply, sewage systems, waste disposal, roads, streetlights, pavements and drains plus poor and overcrowded housing conditions. These lowincome communities are also characterized by high rates of unemployment, low levels of education, a high percentage of single mothers, drug abuse and a high proportion of immigrants. According to the census 2001 in Curaao, approximately 26,000 people or 20 percent of the population live in socially deprived communities (sources: Atakando Pobresa & Social Development and Poverty Related Issues, Reda Sosial) . A new census has been carried out in 2011, the results of which are now being processed. The demand for social housing exceeds supply, a situation exacerbated on Curaao by the lack of available, publicly-owned land. Up to and including 2009, the FKP received 8,100 applications for housing.

Filename: Action fiche project Curacao EDF10 v5 Date June 9 2011 The 9th EDF feasibility study for urban infrastructure (WSP imc, 2007) considered 12 low-income neighborhoods, of which two (Parera/Cocowijk and Nieuw Nederland) were selected for improvement from a shortlist of five. The remaining three neighborhoods (Kortijn, Normandie/Weis af and Souax) were not incorporated due to insufficient funding and because of potential conflict with private land ownership (Kortijn partially).The FKP has identified other (Fortuna Ariba, Sapat, Kirindongo Abao, Bonam, Mahuma, Wechi and Tera Cora) plans for new housing developments to take place in the next 2-3 years and has prepared layout drawings, master plans and cost-estimates. Under the 10th EDF, the priority list of needy areas can be revisited and the 10 th EDF funds will be used to extend on the ongoing 9th EDF project in Nieuw Nederland, to implement improvements in Kortijn and to provide infrastructure in line with the new plans of FKP for the areas Fortuna Ariba Phase 2, Tera Cor, Sapat H and Wechi. On the 24th of May the Court of Law in Curaao decided that the necessary studies should be carried out first before final destination can be determent for the area of Wechi. Taking into account the time factor of such a study it has been decided not to take along the infrastructural development of Wechi with the 10-th EDF. With these funds a more comprehensive infrastructural improvement and needed facilities for the five other neighborhoods can be created. 2.2 Lessons learnt The ROM mission of May/June 2010 to study the 9 th EDF Urban Infrastructure Programme in the five ex-NEA islands found strong local ownership, including in Curaao. In August 2010 the 9 th EDF project (urban infrastructure) has been subject to a first year evaluation. The conclusion was that the 9th EDF project design is "sound and apparently thoroughly studied". During the first Steering Committee meeting of this year 2011 (March 24 th 2011) held on the Island of Saba the state of affairs, progress, planning and encountered bottlenecks were discussed. In general it was concluded that the implementation is on schedule. From the progress and results of the 9 th EDF programme on urban infrastructure the choice for more infrastructural improvements with funding from the 10 th EDF programme is therefore justified and will certainly contribute to better living conditions in the selected areas and communities. 2.3 Complementary actions The 9th EDF Urban Infrastructure Programme for Socially Deprived Communities (24 million) is currently underway, with a Curaao component of 3.1 million for improved infrastructure in Nieuw Nederland, and Parerawijk/Cocowijk (sewerage, drainage, road and walkway paving, play grounds and street light armatures). This will be directly complemented under 10th EDF. This 9th EDF programme also includes capacity building aimed primarily at the public utilities on the five ex-NEA islands for improvements in planning and maintenance. The Netherlands government Socio-Economic Initiative (signed October 2005) aims at poverty reduction in the ex-Netherlands Antilles though various social and building projects ( 20 million). The Curaao government supports the programme Secretariat on Integrated Urban Neighborhood Development established in 2009 to coordinate the urban improvement programme for the period 2009 - 2019. This Secretariat executes neighborhood development initiatives with Dutch funding and assistance from the Dutch Ministry of Urban Planning.

Filename: Action fiche project Curacao EDF10 v5 Date June 9 2011 The 10th EDF action is complementary to the housing and infrastructure programme of the FKP, which has developed the schemes proposed for EDF funding to a fairly mature stage (layout drawings, master plans, cost-estimates). 2.4 Donor coordination Coordination between Curaao and the EC/Delegation The Prime Minister and the Minister of Economic Development of Curacao are respectively Territorial Authorizing Officer (TAO) and Deputy TAO (DTAO) on political level. The Director of the Sector Foreign Economic Cooperation of the Ministry of Economic Development is Deputy TAO on administrative, operational/technical level. The work processes for preparation and programming of the 10th EDF are being coordinated by the office of the last mentioned entity. During implementation phase the TAO will be responsible for the monitoring. The TAO and Deputy TAOs maintain close contact, frequent communication and consultation with the Delegation and involving stakeholders (see 3.5. Stakeholders). Coordination with Member State/other donors The proposed implementation mechanism is indirect centralized management via a Delegation Agreement with SONA (Stichting Ontwikkeling Nederlandse Antillen) a foundation of the Member State. A Steering Committee will be established that will meet on regular basis. In Steering Committee (SC) meetings key stakeholders are provided an opportunity for information on overall strategic direction and the opportunity to deliver input. Technical and financial implementation progress will be reviewed in the SC meetings. 3 DESCRIPTION

3.1 Objectives The overall or general objective is improvement of living conditions of socially deprived (low income) communities and assists poverty alleviation in Curaao The specific objective or purpose of the project is the improvement of infrastructure in selected, deprived urban neighborhoods. The EU support will improve infrastructure in the following selected areas: Nieuw Nederland, Kortijn, Fortuna Ariba phase 2, Tera Cora and Sapate block H. 3.2 Expected results and main activities Infrastructural improvement projects will be implemented in 5 selected priority areas of deprived urban neighborhoods. The expected results are improved roads, sewerage, street lighting, drainage, pavements, services to new lots etc leading to improved living conditions, more and better sanitary conditions, reduced traffic, reduction of flood and dust problems, multifunctional community building, recreation /sport facility and the infrastructure for further construction of social housing. The project will have a strong positive impact on low cost housing for deprived citizens and multi-amenity centers that will be built in some communities will contribute to social cohesion. The priorities low-income communities selected for improvement are Nieuw Nederland, Kortijn, Fortuna Ariba Phase 2, Tera Cora, Sapate block H. At the end of the projects the number of beneficiaries will be about 4,860 persons (or 1,860 households). The improvements in Nieuw Nederland will be in addition to those already underway with 9th EDF resources. The improvements of 5

Filename: Action fiche project Curacao EDF10 v5 Date June 9 2011 Kortijn area were already identified by the 9 th EDF Feasibility Study but could then not be executed by budget restraints.
Neighborhood Nieuw Nederland Proposed project Improvements to existing area Expected Result(s) Estimated nr of beneficiaries & households Bf- 500; Hh- 165

Improved traffic and pedestrian access and movement, safety and security; Eliminating or reducing the amount of flooding; Less frequent, lower spending on road, sewer and drain O&M, approx. 1750 m1 street length and approx. 1160 m1 of sewerage works. Increased tourism and related business opportunities.

Kortijn

Improvements to existing area

Improved traffic and pedestrian access and movement, Bf- 900; Hh- 285 safety and Security by paving approx. 850 m1 of roads, 1,5 km1 streets resurfaced, 3,2 km1 of pedestrian alleyways and footpaths paved and improved. Street lighting provided and improved Eliminating or reducing the amount of flooding. Less frequent and lower expenditure on maintenance of roads and drainage. Increased tourism and related business opportunities.

Fortuna Ariba Phase II

Multifunctional and neighborhood facilities, child recreation area with hereby accompanying infrastructure.

Improved living environment, neighborhood facilities. A multifunctional building of approx 260m2 and child recreation place of approx. 120m2 within a total recreation area of 1900m2. A football field with facilities To serve 94 new low-cost households with infrastructure, 4500 m2 paved parking area with landscaping. The neighborhood facilities are also serving approx. 300 nearby existing low-cost household. New infrastructure to serve 165 low-cost households approx. 860 m1of 5.5.m1 wide paved roads, 3500 m2 paved pedestrian area, 800 m1 sewage works and utilities, approx. 4800m2 recreation- and play area and neighborhood multifunctional facility and child playground. 16000m2 park-area and an effluent irrigation line for landscaping neighborhood. Improved living environment for existing neighborhood.

This project: Bf- 258; Hh- 94 (56*3+28*2+12*4) Expected 2013-15: Bf- 960; Hh- 387

Tera Cora North

New infrastructure and neighborhood facilities for extension of an existing area.

This project: Bf: 500; Hh: 165 Expected 2013-15: Same as above

Sapat Block H

Improvements to existing infrastructure.

Improved traffic and pedestrian access and movement, safety and security by paving 2800 m2 roads and pedestrian area, 980 m2 walking pathway and utilities for street lightning. A community functional center, small playground, landscaping and upgrading recreation area. Eliminating or reducing the amount of flooding; Less/lower spending on roads, drainage and O&M

This project: Bf: 375; Hh: 125 Expected 201315: Bf- 2000; Hh- 858

Filename: Action fiche project Curacao EDF10 v5 Date June 9 2011

Activities and implementation timetable The activities to be carried out and nominal timing are as follows: Detailed Technical Designs: by own means of the Beneficiary; ready Preparation Tender documents for works, ready Preparation Tender documents for services, ready Forecast, procurement notice and tendering period and award Works implementation: Works maintenance period: Audits Evaluation: month 1 (after signing FA). month 2 - 6 month 4 6 month 7 - 12 months 13-31. months 31-37 Yearly Final; before closing phase.

Detailed time table is given in Appendix 3 of the Technical and Administrative Provisions.(TAPS) 3.3 Risks and assumptions Risks: The risk of project delays and cost inflation exists because of interaction of works with existing services (water, power, telephones and sewerage). It is important that utility companies are engaged fully in the planning and design phase. There is some risk of disruption to the population and possibly to the tourist sector due to construction, but the work programme will be designed to minimize this. Market conform engineering estimates are not reflected in the tender values. However it is assumed that the 9th EDF experience has generated accurate knowledge of unit rates for construction and that tenders will be delivered within budget. Availability of competent contractors and competitive bidding of contracts. Government funding is available for maintenance. The risk for social housing projects as complementation on the present 10 th EDF infrastructure projects is minimized due to the fact that: - FKP funding for realization of social housing projects is available. The reserves FKP can count on are: a) FKP has built a reserve (revolving fund) during the eighties and nineties from government funds invested in bonds and time deposits, against (at that time) favorable interest rates. b) To stimulate the "own-your-own-home" concept in 2000 FKP invested substantial capital providing mortgages which accrued interest. c) FKP applies the so-called "cross-subsidy" principle which is up to today very important, by developing middle-income housing projects (houses for sale), additional income is generated to finance construction of low-income housing. d) FKP still has a small reserve, as a result of the soft loans received from Dutch Development Aid dated back from the eighties. These reserves are being used to cover deficits on FKP social housing projects.

Filename: Action fiche project Curacao EDF10 v5 Date June 9 2011 Assumptions: The governments administrations and related (utility) agencies will cooperate with the community to achieve the projects purpose. Capacity building toward participation leads to adequate sustainability Community takes good care of the project results. Community accepting the need to improve the living environment Competent governmental departments and FKP are available for management, design and supervision 3.4 Crosscutting Issues
The improvement of infrastructure in the selected, deprived urban neighborhoods of Nieuw

Nederland, Kortijn, Fortuna Ariba phase 2, Tera Cora, Sapate block H will have a direct positive effect on Curacaos progress towards the reduction of poverty. The environmental impact will be significantly positive, with improved drainage, sewerage collection and dust suppression. Environmental screening (establishing risks and mitigating measures) was carried out for different environmental threats for the 9th EDF feasibility for urban infrastructure improvements. They remain valid. Women have a smaller share of the job market and are mainly employed in low-paid jobs. About 21% of households on Curaao are single parent-headed, rising to 50% in many of the low-income areas; of these, about 95% are female-headed, with on average 1.8 children at home of age 10.4 years (2001 census). 3.5 Stakeholders A stakeholder analysis and workshop was carried out for the 9th EDF Feasibility Study. The main beneficiaries are the current and future inhabitants of the selected areas. The FKP will be closely involved in financing and construction of future housing and management of social housing and social services, as will neighborhood committees (Sentros di Barios). Utility companies Aqualectra (water and electricity) and United Telecommunication Services (UTS) will be involved in network extension and maintenance. General technical coordination will be by the Ministry of Traffic, Transport & Urban Planning. Political responsibility will lie with the Prime Minister/TAO. SONA (as delegate body) will function as Contracting Authority.

Stakeholders, relevant partners and parties

Key stakeholders: Government, in particular: Prime Minister/Minister of General Affairs (TAO), Minister of Economic Development (Deputy-TAO) Minister of Social Development & Welfare (MSDF), Minister of Traffic, Transport & Urban Planning (MTTUP)

Primary Interest/ role in the project

Positive/ effected by project

Commitment

Politically responsible

Positively because project will contribute to achieve Government strategic goals

Strategic goals mentioned in Governing Accord

Filename: Action fiche project Curacao EDF10 v5 Date June 9 2011

Stakeholders, relevant partners and parties

Ministry of Economic Development (Sector Foreign Economic Cooperation: SFEC)

Primary Interest/ role in the project

Responsibility as Deputy TAO on administrative level (operational/technical) General coordination

Positive/ effected by project

Positively

Commitment
Preparation of SPD, Coordination with Donors and Stakeholders Coordination and advisory responsibilities to government Commitment of 10th EDF funds

Ministry of Traffic, Transport & Urban Planning (MTTUP)

Positively because project will contribute to achieve Ministrys objectives

Delegation of the European Commission in Guyana (ECD)

Purpose (EC) is to promote the economic and social development of the OCTs Contracting Authority

Positive, because of close cooperation with TAO, DTAOs and SFEC

Stichting Ontwikkeling Nederlandse Antillen (SONA), Uitvoeringsorgaan SONA (USONA) Fundashon Kas Popular (Housing Foundation: FKP)

Continuation of 9th EDF projects and execution of 10th EDF. Realization of social housing projects

Delegation Agreement

Management and execution of social housing

Planning, information, co financing of preplans, design and execution

Other stakeholders, partner and parties: Aqualectra; the Water & Electricity Production & Distribution Company Realization of water and electricity Delivery system Realization of communication delivery system Link with National Neighborhood Improvement Program 2009-2019 Improved social and urban services Extension of network

United Telecommunication Services (UTS)

Extension of network

Program Secretariat Neighborhood Improvement Curacao

Positively. Enhances ownership and capacity building.

Neighborhood Committees (Sentro di Barios: e.g. Seru Fortuna, , Tera Kora, Sapat, Punda, Otrabanda covering a.o. Kortijn) Inhabitants of socially deprived neighborhoods

Positively. Enhances ownership and capacity building.

Taking care of neighborhood

Beneficiaries

Improvement of quality of life, living circumstances and social cohesion

Involvement via neighborhood committees

Contractor

Carrying out project within terms

The key stakeholders for the EDF 10 Urban Infrastructure project are the Ministry of Transport, Traffic and Urban Planning (MTTUP), Ministry of Economic Development (MEO) and FKP.

Filename: Action fiche project Curacao EDF10 v5 Date June 9 2011 The former Public Works Department (PWD) and Department of Urban Planning and Social Housing (UPDSH) have been both incorporated under MTTUP. The Business plan of MTTUP presents a new organizational structure and lays down the direction for the future of MTTUP and the standards for its success. In the Ministry of Economic Development Sector Foreign Economic Cooperation the former Department for Development Cooperation is incorporated which took care of the technical and administrative tasks of the TAO. FKP possess the technical and administrative capacity for this EDF 10 project as well as sufficient financial resources. FKP has developed and managed since its establishment a lot of social housing projects and can refer to a long list of developed and realized social housing projects. FKP will be guided by USONA with its practical knowledge about the preparation of project documents according to EDF methodology. Reference is also made to page 23 of the Feasibility study concerning identified stakeholders and Annex 2 page 6 to 11 where a stakeholders analysis is presented. The stakeholders information provided is still valid. 4 IMPLEMENTATION ISSUES

4.1 Method of implementation The method of implementation of the 10-th EDF project Urban Infrastructure for Socially Deprived Communities will be through indirect centralized management through a Delegation Agreement (DA) with Stichting Ontwikkeling Nederlandse Antillen (SONA), in accordance with Article 26 of Regulation (EC) No 215/2008 on the financial regulation applicable to the 10th European Development Fund. SONA has been chosen as delegatee body (with implementing agency USONA). The Commission has already delegated SONA to manage the 9 th EDF Urban Infrastructures for Socially Deprived Areas into which the 10 th EDF funding will be integrated. The ROM report of 2010 for the 9th EDF action states that: the project is on track and the project resources are managed in a transparent and accountable manner. The Contracting Authority will be SONA represented by USONA, which will be responsible for procurements, contracting and payments procedures. EU procedures (10 th EDF) will apply. The Delegation Agreement will include provision for TA to assist with technical matters and procurement. The Supervisors will be MTTUP (Public Works) for Kortijn and Nieuw-Nederland and FKP for the other projects. Both supervisor representatives will be appointed through simplified procurement procedures (Two tenders). And for works Two open local tenders will be launched. One tender for Kortijn and Nieuw Nederland, and the other tender for Fortuna Ariba phase 2, Tera Cora and Sapate block H

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Filename: Action fiche project Curacao EDF10 v5 Date June 9 2011

4.2 Procurement and grant award procedures [/programme estimates] Choose one or more of the following options a), b) or c): a) The following is to be inserted without modification if EU procedures apply: 1) Contracts All contracts implementing the action must be awarded and implemented in accordance with the procedures and standard documents laid down and published by the European Commission for the implementation of external operations, in force at the time of the launch of the procedure in question. Participation in the award of contracts for the present action shall be open to all natural and legal persons covered by ACP/EDF regulations. Further extensions of this participation to other natural or legal persons by the concerned authorizing officer shall be subject to the conditions provided for in indicate: e.g. articles 20 of Annex IV of the Cotonou Agreement.

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Filename: Action fiche project Curacao EDF10 v5 Date June 9 2011

4.3 Budget and calendar

# Island area Types of projects and components Total cost estimated ANG 1 Nieuw Nederland Improvement of existing area (street surfacing, footpaths, surface drainage, street lights, services to facilitate new social housing infill in open plots, plus public amenity areas, plus unpaved streets, foul & surface water sewerage) Improvement of existing area (street surfacing, footpaths, surface drainage, street lights, services to facilitate new social housing infill in open plots, plus public amenity areas) Infrastructure, child recreation area and play ground, multifunctional place, soccer field and neighborhood facilities Infrastructure, child recreation area and play ground, multifunctional place, park area and effluent irrigation line. Infrastructure and landscaping, neighborhood facility and playground Subtotal cost (ANG) Subtotal cost ( = 2.60) Building cost ANG Own contribution Infrastructure cost ANG Own contribution 10th EDF

6,750,000

6,750,000

Kortijn

5,500,000

5,500,000

Fortuna Ariba phase 2 Tera Cora

13,800,000

11,200,000

2,600,000

27,400,000

19,400,000

8,000,000

Sapate Blok H

1,800,000 55,250,000 21,250,000 30,600,000 11,769,231

1,800,000 24,650,000 9,480,769

The project cost is estimated at EUR 9,481.000 million, which shall be financed from the European Development Fund (EDF) of the European Union. MTTUP and FKP will contribute with engineering cost for the projects. FKP will finance the cost of construction of social housing. Indicative Timetable Activity Part I
1

2011 1 2 3 4

2012 1 2 3

2013 4 1 2 3

Submission of Single Programming Document Part A to the delegation Submission of Stand-alone Project Identification Fiche (SPIF) Presentation of the identification fiche at oQSG Submission of Action Fiche (AF) Presentation of Action Fiche at oQSG Signing Financing Agreement

March 11

March 11

3 4 5 6

April 11 June 11 September 11 October - December 11

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Filename: Action fiche project Curacao EDF10 v5 Date June 9 2011

Part II
Years Quartly 2011 2012 2013 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Activity
1 Prep Detailed Technical Design (DTD) 2 Prep Tender Documents Works 3 Prep Tender Documents Supervision 4 5 Tendering and Contract Aw ard for Works Tendering and Contract Aw ard for Supervision

6 Implementation

Part III
Maintenance Transfer of projects to beneficiary

4.4 Performance monitoring As a programme steering committee has been established for the 9 th EDF Urban Infrastructure for Socially Deprived Areas programme, this will also be installed for the 10 th EDF Programme on a twice-yearly meeting basis to review technical and financial progress against the detailed work programme. The project will also be subject to the yearly Results Oriented Monitoring (ROM) via independent consultants, starting from the sixth month of project activities, which will be finalized at latest 6 months before the end of the operational implementation phase. 4.5 Evaluation and audit The 10th EDF projects will be audited financially on a yearly basis including an one end-of project evaluation and audit. This audit cycle has already been established through the current 9 th EDF Financing Agreement and the current 9th EDF Delegation Agreement. In view of similarity with the current 9th EDF programme for Curaao no mid-term evaluation will be foreseen but a final evaluation before the closing phase begins. 4.6 Communication and visibility Project visibility actions include creation of sign boards, newspaper information and awareness campaigns for house connections. This will be supplemented with budget from this Financing Agreement. In case of indirect centralized management (EU Budget & EDF) : please attach to the present fiche the table appearing as an Appendix - (Verifications regarding the criteria of indirect centralized management set forth in the applicable Financial Regulation).

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