NAHR EL BARED RECOVERY : THE WORLD BANK PROGRAM LPDC Workshop Tripoli November 26, 2008

MAIN ACTIVITIES FMIP Loan: US$80 million /North = 18m Supplemental Grant to FMIP: $30 million /North = 5.5m Tripoli City Development Strategy: US$350,000 (grant) Nahr El Bared (NBC) Recovery MDTF and Local Development NBC Post conflict Grant: US$2million Regional Development Strategy and North Lebanon Pilot Program: TA

STRATEGIC OBJECTIVES (i) Restore basic services and rebuild priority public infrastructure in the affected municipalities and villages (ii) Support local economic recovery and development in the municipalities that have been impacted (iii) Provide targeted assistance to most vulnerable groups through Community Development activities (iv) Foster the capacity of municipalities to mitigate the impact of the hostilities on municipal finances (within the broader context of developing the municipal sector)

PROCESSES Municipalities are at the center of the program They are fully responsible of selecting their priorities / subprojects. The Municipal Council formally approves every investment All Contracts are signed with the municipality Municipalities are the prime responsible of project implementation The Council commits to provide adequate maintenance

NORTH LEBANON FUNDING DISTRIBUTION AKKAR 6,806,493 BATROUN 1,780,667 BECHARE 1,512,000 KOURA 1,978,667 MOUNIEH-DONIYEH 5,727,603 TRIPOLI 1,535,333 ZGHORTA 2,368,000 Total 21,708,763

SECTOR CONSTRAINTS Inadequate infrastructure with great geographical disparities between districts Scarce municipal resources (fragmented source of own revenues & non transparent transfers) Limited institutional capacity at central government level to manage the sector : Inadequately staffed (+staffing freeze). Weak motivation/incentives Little capacity at local government level and almost no support No business standards and no sanctions are enforced No regionalization of sector investment programs and poor coordination among line ministries Social fragmentation Overall poor implementation performance is a major disincentives for up scaling assistance

REFORM PRIORITIES Strengthen the sector oversight and coordination (General Directorate of Municipal Administration) Provide financial incentives to best performing municipalities Foster cooperation between MOF and MOIM Reform the municipal finance system Limit setting-up many non-viable municipalities, etc. Establish a professional cadre for local governments Streamline the clearance processes

REGIONAL DEVELOPMENT STRATEGY - Vision of the long term DEVELOPMENT goal of the country with a Framework for action based on Regional Master Plan Pilot Development Strategy for North Lebanon (covering Akkar Mouhafaza) and integration with the adjacent territories - Multi-sector approach combining provision of key infrastructure but also foster the human resource base. 4. - Multi-level governance structure relying on decentralized decision making processes, 5. - Participatory approach with transparent decision making process 6. - Sustainable funding with stable, predictable and reliable resources 7. - Realistic time frame with early visible results and managed expectations. 8. - Flexible implementation modalities (contract-based) to formalize the commitments of the various parties 9. - Proactive communication strategy