ACTION FICHE 10th EDF CURAÇAO

7/27/2019 ACTION FICHE 10th EDF CURAAO

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

ACTION FICHE 10th EDF CURAAO

(DUTCH OCT)

EN EN


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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 approachindirect centralized management via a Delegation

Agreement (DA) between the Commission and SONA (Stichting

Ontwikkeling Nederlandse Antillen)

DAC-code 16220 Sector Low-cost housing

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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 Governmentspoverty 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: Identified infrastructural upgrading by the Housing Foundation Curaao (Fundashon Kas

Popular, FKP), which has already drawn up plans for infrastructure improvements.

2. Upgrading of the already identified deprived areas of Kortijn and Nieuw-Nederland (9th 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 10 th 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 low-

income 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 toand including 2009, the FKP received 8,100 applications for housing.

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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 timefactor 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 9th 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 9th 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, playgrounds 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 fundingand assistance from the Dutch Ministry of Urban Planning.

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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 ofbeneficiaries 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

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Kortijn area were already identified by the 9 th EDF Feasibility Study but could then not be executed

by budget restraints.

Neighbor-

hood

Proposed

project

Expected Result(s) Estimated nr of

beneficiaries &

households

NieuwNederland

Improvements toexisting area

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 m1of sewerage works.

Increased tourism and related business opportunities.

Bf- 500; Hh- 165

Kortijn Improvements to

existing area

Improved traffic and pedestrian access and movement,

safety and Security by paving approx. 850 m1 of roads, 1,5km1 streets resurfaced, 3,2 km1 of pedestrian alleyways andfootpaths paved and improved. Street lighting provided and

improved

Eliminating or reducing the amount of flooding.

Less frequent and lower expenditure on maintenance ofroads and drainage.

Increased tourism and related business opportunities.

Bf- 900; Hh- 285

Fortuna

Ariba PhaseII

Multifunctional

andneighborhood

facilities, childrecreation area

with herebyaccompanying

infrastructure.

Improved living environment, neighborhood facilities.

A multifunctional building of approx 260m2 and childrecreation place of approx. 120m2 within a total recreation

area of 1900m2. A football field with facilitiesTo 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.

This project:

Bf- 258; Hh- 94

(56*3+28*2+12*4)

Expected 2013-15:

Bf- 960; Hh- 387

Tera Cora

North

New

infrastructureand

neighborhoodfacilities for

extension of anexisting area.

New infrastructure to serve 165 low-cost households

approx. 860 m1of 5.5.m1 wide paved roads, 3500 m2paved pedestrian area, 800 m1 sewage works and utilities,

approx. 4800m2 recreation- and play area and neighborhoodmultifunctional facility and child playground. 16000m2

park-area and an effluent irrigation line for landscapingneighborhood.

Improved living environment for existing neighborhood.

This project:

Bf: 500; Hh: 165

Expected 2013-15:

Same as above

Sapat

Block H

Improvements to

existinginfrastructure.

Improved traffic and pedestrian access and movement,

safety and security by paving 2800 m2 roads and pedestrianarea, 980 m2 walking pathway and utilities for street

lightning. A community functional center, smallplayground, 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 2013-

15:

Bf- 2000; Hh- 858

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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 month 1 (after signing FA).Preparation Tender documents for works, ready month 2 - 6

Preparation Tender documents for services, ready month 4 6

Forecast, procurement notice and tendering period and award month 7 - 12

Works implementation: months 13-31.

Works maintenance period: months 31-37

Audits Yearly

Evaluation: 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.

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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 besignificantly 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

Primary Interest/

role in the project

Positive/ effected by

project

Commitment

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)

Politically responsible Positively because project will

contribute to achieveGovernment strategic goals

Strategic goals

mentioned inGoverning Accord

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Stakeholders, relevant partners

and parties

Primary Interest/

role in the project

Positive/ effected by

project

Commitment

Ministry of Economic Development (SectorForeign Economic Cooperation: SFEC)

Responsibility asDeputy TAO on

administrative level(operational/technical)

Positively Preparation of SPD,Coordination with

Donors andStakeholders

Ministry of Traffic, Transport & UrbanPlanning (MTTUP)

General coordination Positively because project willcontribute to achieve

Ministrys objectives

Coordination andadvisory

responsibilities togovernment

Delegation of the European Commission inGuyana (ECD)

Purpose (EC) is topromote the economic

and social developmentof the OCTs

Positive, because of closecooperation with TAO, DTAOs

and SFEC

Commitment of 10thEDF funds

Stichting Ontwikkeling NederlandseAntillen (SONA), Uitvoeringsorgaan SONA

(USONA)

Contracting Authority Continuation of 9

th

EDFprojects and execution of 10th

EDF.

DelegationAgreement

Fundashon Kas Popular (HousingFoundation: FKP)

Management andexecution of social

housing

Realization of social housingprojects

Planning,information, co

financing of pre-plans, design andexecution

Other stakeholders, partner and parties:

Aqualectra; the Water & Electricity

Production & Distribution Company

Realization of water

and electricity Delivery

system

Extension of network

United Telecommunication Services (UTS) Realization ofcommunication

delivery system

Extension of network

Program Secretariat Neighborhood

Improvement Curacao

Link with National

NeighborhoodImprovement Program

2009-2019

Positively. Enhances ownership

and capacity building.

Neighborhood Committees (Sentro diBarios: e.g. Seru Fortuna, , Tera Kora,

Sapat, Punda, Otrabanda covering a.o.

Kortijn)

Improved social andurban services

Positively. Enhances ownershipand capacity building.

Taking care ofneighborhood

Inhabitants of socially deprived

neighborhoods

Beneficiaries Improvement of quality of life,

living circumstances and socialcohesion

Involvement via

neighborhoodcommittees

Contractor Carrying out projectwithin 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.

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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 IMPLEMENTATIONISSUES

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 EuropeanDevelopment 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 10th 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 (10th 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 procurementprocedures (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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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 orlegal 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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4.3 Budget and calendar

# Island area Types of projects and components Total cost

estimated

ANG

Building cost

ANG

Infrastructure cost ANG

Own

contribution

Own

contribution

10th EDF

1 Nieuw

Nederland

Improvement of existing area (street

surfacing, footpaths, surface drainage,street lights, services to facilitate new

social housing infill in open plots, pluspublic amenity areas, plus unpaved streets,

foul & surface water sewerage)

6,750,000 - - 6,750,000

2 Kortijn Improvement of existing area (street

surfacing, footpaths, surface drainage,

street lights, services to facilitate newsocial housing infill in open plots, pluspublic amenity areas)

5,500,000 - - 5,500,000

3 Fortuna

Ariba phase

2

Infrastructure, child recreation area and

play ground, multifunctional place, soccer

field and neighborhood facilities

13,800,000 11,200,000 - 2,600,000

4 Tera Cora Infrastructure, child recreation area and

play ground, multifunctional place, parkarea and effluent irrigation line.

27,400,000 19,400,000 - 8,000,000

5 Sapate BlokH

Infrastructure and landscaping,neighborhood facility and playground

1,800,000 - 1,800,000

Subtotal cost (ANG) 55,250,000 30,600,000 24,650,000

Subtotal cost (= 2.60) 21,250,000 11,769,231 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

A c t i v i t y 2011 2012 2013

1 2 3 4 1 2 3 4 1 2 3 4

Part I

1Submission of Single Programming

Document Part A to the delegationMarch 11

2Submission of Stand-alone Project

Identification Fiche (SPIF)March 11

3Presentation of the identification ficheat oQSG

April 11

4 Submission of Action Fiche (AF) June 11

5 Presentation of Action Fiche at oQSG September 11

6 Signing Financing Agreement October - December 11

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Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4

1 Prep Detailed Technical Design (DTD)

2 Prep Tender Documents Works

3 Prep Tender Documents Supervision

4Tendering and Contract Aw ard for

Works

5Tendering and Contract Aw ard for

Supervision

6 Implementation

Maintenance

Transfer of projects to beneficiary

Activity

Part III

Years

Quartly

2011 20132012

Part II

2014 2015

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 10th

EDF Programme on atwice-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 finalevaluation before the closing phase begins.

4.6 Communicationand 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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