Document of

The World Bank

Report No: 21138-ER

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED LEARNING AND INNOVATION LOAN

IN THE AMOUNT OF SDR 4.0 MILLION (US$5.0 MILLION EQUIVALENT)

TO THE

STATE OF ERITREA

FOR A

CULTURAL ASSETS REHABILITATION PROJECT

May 29, 2001

Environment and Social Development UnitAfrica Regional Office

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CURRENCY EQUIVALENTS

(Exchange Rate Effective November 14, 2000)

Currency Unit = NakfaI Nakfa = US$0.10

US$1.00 = Nakfa 9.775

FISCAL YEARJuly 1 -- June 30

ABBREVIATIONS AND ACRONYMS

CARP Cultural Assets Rehabilitation ProjectDCA Development Credit AgreementFMS Financial Management SpecialistGOE Govenmment of EritreaGPN General Procurement NoticeIA Implementing AgencyIAPSO Inter-Agency Procurement Services OrganizationICCROM Center for the Study of the Preservation and Restoration of Cultural HeritageICR Implementation Completion ReportIDA Intemational Development AssociationIDF Institutional Development FundLACI Loan Administration Change InitiativeLIL Learning and Innovation LoanNME National Museums of EritreaOMR Output Monitoring ReportPEC Procurement Evaluation CommitteePFDJ People's Front for Democracy and JusticePIP Project Implementation PlanPMR Project Management ReportRDC Research and Documentation CenterSA Special AccountSBD Standard Bidding DocumentsSOE Statement of ExpensesSPN Specific Procurement NoticeTA Technical AssistanceTOR Terms of ReferenceTTL Task Team LeaderU NDB United Nations Development BusinessUNESCO United Nations Educational, Scientific and Cultural Organization

Vice President: Callisto E. MadavoCountry Director: Oey Astra MeesookSector Manager: Roger C. Sullivan

Task Team Leader: Peter A. Dewees

ERITREACULTURAL ASSETS REHABILITATION PROJECT

CONTENTS

A. Project Development Objective Page

1. Project development objective 22. Key performance indicators 2

B. Strategic Context

1. Sector-related Country Assistance Strategy (CAS) goal supported by the project 32. Main sector issues and Government strategy 43. Learning and development issues to be addressed by the project 64. Learning and innovation expectations 6

C. Project Description Summary

1. Project components 62. Institutional and implementation arrangements 83. Monitoring and evaluation arrangements 8

D. Project Rationale([his section is not to be completed in a LIL PAD)

E. Summary Project Analysis

1. Economic 92. Financial 93. Technical 94. Institutional 105. Environmental 126. Social 137. Safeguard Policies 14

F. Sustainability and Risks

1. Sustainability 142. Critical risks 153. Possible controversial aspects 16

G. Main Credit Conditions

1. Effectiveness Condition 162. Other 16

H. Readiness for Implementation 17

1. Compliance with Bank Policies 17

Annexes

Annex 1: Project Design Summaiy 18Annex 2: Detailed Project Description 25Annex 3: Estimated Project Costs 39Annex 4: Cost-Effectiveness Analysis Summary 40Annex 5: Financial Summary 41Annex 6: Procurement and Disbursement Arrangements 42Annex 7: Project Processing Schedule 48Annex 8: Documents in the Project File 50Annex 9: Statement of Loans and Credits 51Annex 10: Country at a Glance 53

MAP(S)IBRD 31462

ERITREA

Cultural Assets Rehabilitation Project

Project Appraisal Document

Africa Regional OfficeAFTES

Date: May 29, 2001 Team Leader: Peter A. DeweesCountry Manager/Director: Oey Astra Meesook Sector Manager: Roger C. Sullivan

Project ID: P058724 Sector(s): MY - Non-Sector Specific

Lending Instrument: Learning and Innovation Loan (LIL) Theme(s): Social DevelopmentPoverty Targeted Intervention: N

Program Financing Data1 Loan [X] Credit ] ] Grant [1 Guarantee [ Other:

For Loans/Credits/Others:Amount (US$m): $5.00

Proposed Terms (IDA): Standard Credit

Financing Plan (US$m): Source:,: Local Foreign Total:BORROWER 0.30 0.00 0.30

IDA 2.40 2.60 5.00

OTHER FOREIGN SOURCES (UNIDENTIFIED) 0.00 0.10 0.10

Total: 2.70 2.70 5.40

Borrower: STATE OF ERITREA

Responsible agency:Cultural Heritage Secretariat, Ministry of FinanceAddress: P.O. Box 6513, Asmara, EritreaContact Person: Naigzy GebremedhinTel: 291-1-122059 Fax: 291-1-123691 Email: qrsi@gemel.com.er

Other Agency(ies):National Museums of EritreaAddress: P.O. Box 5284, Asmara, EritreaContact Person: Dr. Yoseph LibsikelTel: 291-1-119902 Fax: 291-1-126368 Email: keskese@eol.com.erCultural Affairs Bureau, Ministry of EducationAddress: P.O. Box 251, Asmara, EritreaContact Person: Solomon TsehayeTel: 291-1-118980 Fax: 291-1-121980 Email:

Estimated disbursements ( Bank FYIUS$m):-Y - -- i -2002- 2003 t 2004-

Annual 1.70 1.80 1.50Cumulative 1.70 3.50 5.00

Project implementation period: 3 yearsExpected effectiveness date: 08/01/2001 Expected closing date: 01/31/2005

>S PAD FomR. M20

A. Project Development Objective

1. Project development objective: (see Annex ])

As the Government of Eritrea begins the process of rebuilding its economy after the close of the conflictwith Ethiopia, it is seeking Bank support with a Leaming and Innovation Loan to assist it in testing out anddeveloping the means for more fully integrating the conservation and management of cultural assets intolocal and national economic development. The project is coincident with progress which is being made inlaunching post-conflict activities which are oriented toward economic reconstruction and recovery, andother social and economic programs with poverty reduction objectives.

The decision to process it as a LIL is because of strong capacity building elements, the pilot nature ofindividual components for which viable technical, financial, and social solutions need to be tested anddeveloped, and the need for experimentation with different growth-oriented partnership arrangements withrespect to the involvement of the private sector, government, communities, local institutions, and groups ofartisans, craftsmen and builders.

The project would provide support for testing several approaches, on a pilot basis, for integrating povertyreduction and growth objectives with the conservation and rehabilitation of the country's cultural assets,focusing in part on the unique architectural heritage of Asmara and other urban centers, as well as onselected historic sites, and on its rich written, oral, and artistic traditions. The project would work closelywith communities in historic areas, and in urban sites, to revitalize the economic and cultural life ofcommunities through conservation. The project would also strengthen the management of public recordsboth to contribute to the development of a historiography of Eritrea while improving the efficiency of thepublic sector. By providing support for building skills development, and for small- and medium-sizebuilding enterprises, the project would also contribute to the revitalization of economic activity in thisreconstruction period. It would support job creation and skills development through a modest civil worksprograms, and would lay important groundwork for capitalizing on local tourism potential (which hadstarted to blossom before the conflict).

2. Key performance indicators: (see Ainex 1)

At the national level, progress in meeting the project's development objectives will be assessed by focusingon and disseminating good practices for cultural asset conservation and management activities piloted bythe project, and on the effectiveness of the coordinating mechanism -- the Steering Committee on CulturalHeritage -- in catalyzing action, setting priorities, and mobilizing resources for accomplishing nationalgoals with regard to cultural asset management. The following indicators would serve as performiancebenchmarks for the proposed LIL.

1. Site Planning and Conservation

* Site inventories, plans, and conservation activities, with a strong community-based growth anddevelopment orientation, are developed and under implementation at pilot sites. An evaluationmechanism is in place to ensure that the lessons from these pilots are captured in the design of futureinterventions. The results from these evaluations are effectively disseminated.

* The National Museum is better able to deliver on its mandate of education, research, and exhibition,with trained staff and management, and improved facilities.

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2. Conserving the Built Environment

* A growth-oriented planning process for urban architectural management and conservation is underway,and the capacity to carry out planning is improved. As part of the planning process, guidelines forarchitectural management and conservation are developed and disseminated.

* A Conservation fund is under implementation, designed to stimulate the private sector and to engagecommunities in urban architectural conservation, and is assessed for its effectiveness and sustainability.Results of the assessment are disseminated.

* Capacity for undertaking building conservation is improved in the building trades. Low income groupsare targeted for training in specialized building trades related to conservation.

* Conservation of priority and targeted sites in Asmara and Massawa is completed, with a particularemphasis on improving community access to public services and spaces.

3. Supporting Living Cultures

. Traditions of oral literature are strengthened. Programs of training in oral history and oral literatureand traditions are in place, and the management of information about oral history and literature isimproved.

* Oral histories of various periods (i.e. pre colonial, Italian, British and Federal, and Ethiopianannexation and armed struggle, 1961-1991) are collected, disseminated, and incorporated into theeducational curricula.

4. Documentation and Information Management

* The capacity for archives and records management is improved.- Investments in improved records management technologies are made and are resulting in better records

conservation.i Asmara municipal building records are made more accessible through improved management.- Inventory of arts and manuscripts found in religious institutes (both Christian and Muslim) is

undertaken, and appropriate storage facilities for safe keeping of parchments and other manuscripts isprovided to selected monasteries.

B. Strategic Context1. Sector-related Country Assistance Strategy (CAS) goal supported by the project: (see Annex 1)Document number: IDA/R2000-184 Date of latest CAS discussion: 11/22/2000

The Interim Support Strategy for Eritrea was discussed by the Board in conjunction with its review of theEritrea Emergency Reconstruction Program in mid-November, 2000. The Interim Support Strategyreviewed implementation of the Bank's assistance strategy to Eritrea prior to the outbreak of hostilities withEthiopia, and articulated a program of future Bank support for meeting near-termn emergency humanitarianneeds, for reconstruction, and for Eritrea's wider economic recovery and development efforts. The ISSanticipated that, in addition to supporting reconstruction and recovery, future lending would focus oncommunity-based development and education (among other things) complemented by activities to revive theprivate sector which would be necessary to generate growth and employment. It is within this frameworkthe Cultural Asset Rehabilitation Project has been prepared.

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Bank support for cultural asset conservation and management in Eritrea is an outcome of longer termdiscussions with Government which predate the recent conflict. Consistent with the previous CAS'sobjective of responding to Government's leadership in policy and program development, the Bank firstagreed to consider providing support to the sector, at Govemment's request, in mid-1998. In order tostrengthen the more general institutional framework for addressing the management of cultural assets, anInstitutional Development Fund grant was approved the following year. Despite the conflict, performanceof the IDF-funded activity has been good. The design and focus of the LIL is very much seen to be anoutcome of the lessons learned as a result of the IDF-funded project, which include a much greaterawareness of the need to integrate economic growth and development objectives with investments incultural asset management, the need to focus on local development priorities which may complement orotherwise be affected by interventions which seek to conserve cultural assets, and the need to integratelonger term sustainable development objectives into an investment program.

More generally, the approach proposed in this LIL is consistent with the development objectives identifiedin the previous CAS related to capacity building, increasing sources of growth and human resourcedevelopment.

* Capacity building will be the focus of training activities associated with introducing community-basedconservation approaches to site planning and conservation in selected pilot sites, traditional buildingskills development activities associated with the conservation of the built environment, as well as ofactivities associated with the establishment of national archives.

* The project will provide opportunities for increasing sources of growth by bringing aboutimprovements in the planning and conservation of urban and historic sites in a manner which increasestheir value for the tourist industry and which improves the context for both urban and rural growtharound these sites.

* Aside from the more general idea that the culture of a country is among the most important componentsnecessary for its social development, human resource development will be the particular emphasis oflinkages established through specialized programs between the National Museum and educationalinstitutions. The project will also provide support for the development of the arts, language, andliterature through a range of activities.

Identification of the potential for possible Bank investment in the sector took place before the outbreak ofthe conflict with Ethiopia, and plans for public investment in cultural asset conservation and managementproceeded. The fact that Govemment has sought quickly to return to this agenda following the closure ofthe conflict suggests that it views the sector with keen interest, as a component of its wider and longer-termnational development strategy.

2. Main sector issues and Government strategy:

Eritrea is the site of some of the oldest human settlement in Africa. Though the beginning of recordedEritrean history dates to the accounts of trade with its Red Sea ports from around the first century AD,relatively recent discoveries have shown that it has a rich prehistory as well. Early Christian influences dateto around 400 AD, Islamic influences followed several hundred years later, and these have had a profoundimpact on Eritrean culture and tradition. A rich civilization flourished around Adulis until the 5th centuryAD which was an amalgam of indigenous culture and external influences, notably from Southern Arabia.Massawa and the Dahlak islands were inhabited by Muslim communities from the early 10th century, and

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Turkish influences were entrenched, particularly on the coastal strip, by the 16th century. More recentEgyptian control was followed by Italian colonization, in the 1890s, and then by British administrative ruleafter-World War II. Federation with Ethiopia, and then Annexation, lasted another four decades untilindependence in 1993.

Evidence of Eritrea's rich past is found not only in ancient monuments, cities, and prehistoric sites, but alsoin the work of traditional artisans who have long contributed to its material culture by producingleatherwork, jewelry, woodwork, and pottery. Rich oral traditions have also contributed to the life of thecommunity, strengthening ties to the past -- and enriching the life of the present. Much of this importantheritage was virtually ignored during previous regimes, and remains of archaeological sites, marketplaces,and historical and religious structures have in many instances been forgotten. Building and crafts skills,healing traditions, and language skills are similarly being lost with time. Paradoxically, a strong emphasison literacy in the educational system has undermined the traditions of oral poets - dependent on a systemof memory and recitation which is not captured in written texts. Ancient cities, such as at Qohaito andSembel, have been slowly disassembled by people in nearby villages who quarry these sites for cut buildingstones. More recent colonial influences in Asmara and other cities have left a remarkable collection ofarchitectural styles which is unique in Africa, and this too is under threat as new development crowds outthe older parts of the urban fabric. Until recently few of Eitrea'g historic sites have been managed with teview that they have much to offer to the national, regional, and local economies.

Concern for the preservation of its cultural assets has been a major preoccupation in Eritrea, both duringthe period of the armed struggle and after independence. Activities which are already underway attest to akeen level of interest among a diverse set of actors. The Research and Documentation Center (RDC),originally established during the independence war, holds an exhaustive collection of recent material andseeks to expand its collection to cover the colonial and pre-colonial period. The History Project(implemented under the auspices of the PFDJ) is documenting the oral and written history of Eritrea. Localinterests are seeking increasingly to protect historic Asmara's rich collection of modemist and rationalistarchitecture. The Ministry of Tourism has prepared a National Tourism Development Program whichoutlines a strategy for capitalizing on the country's cultural assets. Other institutions, such as the NationalMuseum, the University of Asmara, and the Ministry of Education, are similarly struggling to establishprograms in their areas of expertise with strong links to education and local development initiatives. Thelevel of progress made in these individual activities underscores a commitment, both on the part of theGovernment as well as in civil society, to accord the management and rehabilitation of cultural assets aplace of prominence in Eritrea's development agenda.

In 1999, Government created a multi-sectoral and high level Steering Committee on Cultural Heritageunder the authority of the Ministry of Finance to begin to coordinate responsibilities and to develop astrategy for cultural asset management activities across institutions. The Steering Committee has prepareda series of policy notes which address national concerns such as the preservation of historic architecture,archeological sites and museums, Eritrean historical documents, folklore, and oral history. These policynotes articulate progress made to date and propose activities to address cultural asset management in eachof these areas. Concurrently, draft legislation is being prepared to address issues such as historicalpreservation, the conservation of cultural sites, and the establishment of a national archive. The SteeringCommittee remains the locus of much strategic thinking about the direction of Government's approach tocultural asset conservation and management.

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3. Learning and Development issues to be addressed by the project:

The project will provide resources to pilot the development of community-based site planning andconservation initiatives in selected priority sites and to build national, regional, and local capacity for siteplanning and conservafion in a way which integrates economic growth opportunities with cultural sitemanagement. The project will also provide opportunities to develop partnerships between the public andprivate sectors, with communities, and with other local institutions, for the adaptive re-use ofarchitecturally significant buildings and public spaces in Asmara and Massawa. The project will test outapproaches for supporting living cultures, such as oral poetry, and other art and building traditions, andwill pilot work on the development of oral histories about Eritrea's recent past. Finally, archivesmanagement will provide an increased ability to access the historical record. Increased accessibility toGovernment and municipal records will help to improve the efficiency of public sector management.

The creation of a multi-stakeholder steering committee to oversee project implementation, the scope forpartnerships with national groups and international NGOs and other stakeholders, and the need tocollaborate closely with the private sector and communities on site management and developmentinitiatives, and on the conservation of the built environrnent, will provide opportunities to test outalternative approaches toward institutional collaboration, and will promote innovative opportunities forinstitutional learning.

4. Learning and innovation expectations:

[ Economic 1 Technical Z Social Z Participationn Financial Z Institutional O Environmental L Other

With regard to technical innovation, it is anticipated that LIL resources will be used to test out differentapproaches to the conservation of architecturally significant buildings and historic sites. In addition, theuse of new technologies for recording historic documents and for inventorying cultural assets will be testedby the project. The development of improved records management systems, with respect to theestablishment of local and national archives, will be piloted by the project.

Key social innovations in site conservation and management will test approaches to more fully involvingcommunities in the conservation of threatened, historically important sites, particularly in Qohaito andNakfa -- two sites which are being slowly dismantled by site-adjacent communities who use buildingmaterial quarried from older structures. Activities in these areas will focus also on participation ofcommunities in site conservation, as will activities associated with the conservation of architecturallysignificant buildings in Asmara and Massawa.

Finally, the project will explore the potential for multiple institutional arrangements for cultural assetmanagement, building on important synergies and interests amongst varied institutional stakeholders,including the culture, tourism, urban, and education sectors.

C. Project Description Summary

1. Project components (see Annex 2 for a detailed description and Annex 3 for a detailed costbreakdown):

The project comprises four components:

a) Site planning and conservation. This component will focus on developing pilot community-basedand growth oriented conservation activities at selected historic sites, in particular around Qohaito

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and Asmara which are suffering from severe degradation as a result of natural and human forces.The component will also introduce community-based conservation approaches to assist in themanagement of cultural assets created during the independence struggle prior to 1991 (such asunderground theaters, clinics, libraries and other structures.)

This component will also seek to strengthen the National Museums of Eritrea by upgrading andimproving its facilities and establishing linkages through specialized programs between theNational Museum and educational institutions, on a pilot basis, in Asmara. It is expected that thisactivity will contribute to educational curriculum development.

b) Conserving the built environment. This component will focus, in selected pilot areas, onintegrating poverty reduction and growth objectives with the conservation of the uniquearchitectural heritage of Asmara, and for developing future interventions in Massawa and othersites. The component is expected to strengthen the institutional and legal framework for protectingand conserving historically and architecturally important buildings, neighborhoods, and streets,particularly by focusing on supporting enterprise development and economic growth under avariety of innovative arrangements, for example through custodial assignments and private-publicpartnerships; improving the delivery of community and public services, by focusing on theconservation and use of community assets and public spaces in a manner which serves the poorestgroups; and through training and capacity building to improve the institutional, regulatory, andtechnical capacity of public institutions to manage the challenge of combining urban conservationand development objectives.

In addition to focusing on growth objectives, the project will provide resources to develop themechanisms for listing and protecting historic buildings from unwarranted changes andmodifications; for restoring modified buildings to their original form and shape; and for assessingthe nature of the 'built heritage' in other parts of Efitrea, for example, in Massawa, Debre Bizen,Decamhare, and Keren, inter-alia by carrying out detailed surveys and assessments of prioritybuildings, structures, and public spaces for conservation, and by making selected emergencyinvestments in stabilizing historic structures or in othenvise improving the stability and integrity ofimportant buildings.

c) Supporting living cultures. This component will provide support for the development oflanguage, literature, and history and for strengthening Eritrea's rich oral traditions, in particularpoetry and storytelling, by providing performance opportunities for oral poets and storytellers, byproviding training and building capacity in field methods for the collection of oral literature andhistory, and by launching pilot field studies to document and record threatened oral traditions. It isexpected that these activities will be linked to educational curriculum development and toimproving literacy.

d) Documentation and information management. This component will provide support which willcontribute to the development of a system of management of national and regional archives. Thefocus in the first instance will be to provide training, and capacity building support for the eventualestablishment of a National Archive, including equipment and information managementtechnologies to assist in created a user-friendly system of information retrieval. The componentwill also provide support for improving the management of other public and private archives, inparticular the collection at the Pavoni Center, and Asmara's Municipal building plan records.

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Sector Costs %of g if in= ng.. g .....

A. Site planning and conservation Other Social 1.50 27.8 1.40 28.0Protection

B. Conserving the built environment Other Social 2.50 46.3 2.30 46.0Protection

C. Supporting living cultures Other Social 0.50 9.3 0.50 10.0Protection

D. Documentation and information Institutional 0.50 9.3 0.50 10.0management DevelopmentE. Coordination and management Institutional 0.40 7.4 0.30 6.0

Development

Total Project Costs 5.40 100.0 5.00 100.0

Front-end fee 0.00 0.0 0.00 0.0Total Financing Required 5.40 100.0 5.00 100.0

2. Institutional and implementation arrangements:

Project management would be the responsibility of the Secretariat of the Steering Committee on CulturalHeritage, which has been established under the auspices of the Ministry of Finance. Nine institutions arecurrently represented on the Steering Committee: the Research and Documentation Center (RDC), theNational Museums of Eritrea (University of Asmara), the People's Front for Democracy and Justice(PFDJ), the Ministry of Education, the Ministry of Tourism, the Ministry of Finance, the Office of thePresident, and the Municipalities of Asmara and Massawa. Other stak-eholders which will be engaged inproject implementation include the Eritrean Society for Historical Architecture, the Eritrean Association ofArchitects and Engineers, the Eritrean Association of Artists, the Pavoni Center (a private archive), theDebre Bizen Committee, local government officials, and representatives from religious organizations,including the Orthodox Church, the Moslem Council, and the Catholic Patriarchal Office.

3. Monitoring and evaluation arrangements:

The Secretariat of the Steering Committee will implement a systematic monitoring and reporting system,focusing on both the outputs and outcomes of the project. The system will allow for an effective evaluationof (i) the project's delivery mechanisms, implementation procedures, and institutional arrangements; (ii)performance effectiveness, evaluated on the basis of the project's development objectives and the input,output, outcome, and impact indicators identified in the Project Design Summary (Annex 1); and (iii) thepotential replicability of project activities on a wider scale. Progress towards project outcomes will beevaluated during project supervision and during a Mid-Term review. The Mid-Term Review woulddetermnine the extent to which the project is performing against the objectives set for it, and would carry outa preliminary assessment of the potential for wider scale replication. Preparation of an ImplementationCompletion Report will be initiated by the Bank prior to the project's closing date, in conjunction with thepreparation of Government's own evaluation report. Monitoring and Evaluation will be the responsibilityof a M&E Officer, employed by the Secretariat.

D. Project Rationale[This section is not to be completed in a LIL PAD. Rationale should be implicit in paragraph B: 3.]

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E. Summary Project Analysis (Detailed assessments are in the project file, see Annex 8)

1. Economic (see Annex 4):[For LIL, to the extent applicable]O Cost benefit NPV=US$ million; ERR = % (see Annex 4)* Cost effectivenessO Other (specify)In the context considered here, cultural assets include both the material aspects of culture (for example,historic sites and buildings, landscapes, and objects of particular historical, architectural, aesthetic, orcultural significance) as well as non-material aspects such as social practices, symbolic forms ofexpressions (for example, the arts, music, dance, oral traditions, literature, etc.), values and beliefs.

In light of the pilot nature of this project, only notional and qualitative economic analyses will beundertaken a priori. The project is expected to generate a range of benefits associated with: a) experiencegained with various institutional partnership arrangements for cultural asset conservation; b) improvedplanning and site interpretation to accommodate conservation needs and tourism interests in cultural sites;c) growth and poverty reduction associated with the development of enterprises and the private sector tosupport built heritage conservation; d) conservation of cultural assets which might otherwise have beenlost, for example, to theft or as a result of development; e) community involvement in cultural siteconservation and management; f) improved management of public records; and g) improved institutionalcapacity to formulate and implement cultural asset management programs.

Cost-effectiveness was carefully considered during project design. As pilot operations, interventions underall components are expected to be relatively small-scale and will seek to optimize the impacts of resourceuse by developing partnership and possible co-financing arrangements with domestic and internationalorganizations such as Mrara Art Association, Mahber Fikri Sine-Tibeb, ICCROM, and UNESCO. Siteconservation activities are expected to use local building materials and labor intensive methods. There is avery strong element of capacity building in the project design, which is intended to contribute tolonger-tenn sustainability.

2. Financial (see Annex 4 and Annex 5):NPV=US$ million; FRR = % (see Ainex 4)[For LIL. to the extent applicable]Because of the nature of the LIL, particularly its size and emphasis on testing and innovation, the monetaryand non-monetary benefits have not been analyzed in the comprehensive way normally associated withmore traditional Bank investment projects. As the LIL is a relatively uncomplicated pilot operation,resources will be managed by the Secretariat of the Steering Committee. The project is expected also topilot the use of low-cost financial management software.

3. Technical:[For LIL, enter data if applicable or 'Not Applicable'lThe need for technical studies associated with site conservation in project pilot sites will be identifiedduring the planning process. These studies might include activities related to archeological investigation,building stabilization, drainage improvement, or archival studies. The scope for using advanced dating,remote sensing, and conservation technology to enhance the planning and conservation process will also beexplored and developed for wider-spread application elsewhere in Eritrea. Conservation of the builtenviromnent will in part depend on strengthening traditional building skills. The Documentation andInformation Management component will also provide limited resources, through technical assistance, to

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develop the use of enhanced documentation tools for records management.

4. Institutional:As indicated in Section C.2, overall project oversite and program management will be the responsibility ofthe Steering Committee on Cultural Heritage, which has been established under the auspices of the Ministryof Finance. Nine institutions are currently represented on the Steering Committee: the Research andDocumentation Center (RDC), the University of Asmara (National Museums of Eritrea), the People's Frontfor Democracy and Justice (PFDJ), the Ministry of Education, the Ministry of Tourism, the Ministry ofFinance, the Office of the President, and the Municipalities of Asmara and Massawa. Other stakeholderswhich may be engaged in implementation include the Eritrean Society for Historical Architecture, theEritrean Association of Architects and Engineers, the Eritrean Association of Artists, the Pavoni Center (aprivate archive), the Debre Bizen Committee, local govemment officials, and representatives from religiousorganizations, including the Orthodox Church, the Moslem Council, and the Catholic Patriarchal Office.

Day-to-day project management will be the responsibility of a Secretariat, which has been established tomanage the affairs of the Steering Committee. The responsibilities of the Secretariat are described in thefollowing section 4.2.

4.1 Executing agencies:

Working closely through the Steering Committee, and, in addition to the Secretariat of the SteeringCommittee, there will be 3 Implementing agencies for the project. The primary agencies with projectimplementation responsibilities are: the Research and Documentation Center (RDC), the NationalMuseums of Eritrea, and the Ministry of Education (Cultural Affairs Bureau). Their responsibilities, byproject component, are summarized in the Table below.

Implementing Responsibilities, by Project Component

Project Component Implementing Agency Project Management Responsibility

1. Site Planning, Conservation, and National Museums of Eritrea Assistant Project CoordinatorMuseum Development

2. Conserving the Built Environment Secretariat to the Steering Committee Assistant Project Coordinatoron Cultural Heritage

3. Supporting Living Culture Ministry of Education, Bureau for Assistant Project CoordinatorCulture

4. Documentation and Information Research and Documentation Center Assistant Project CoordinatorManagement

5. Project Management | Secretariat to the Steering Committee Project Coordinator and the Steeringon Cultural Heritage Committee on Cultural Heritage

Notes: It is envisaged that project management responsibilities will be shared by 2 Assistant Project Coordinators, who willhave responsibilities for all four project components. These may be existing staff from the Implementing Agencies.

The Implementing Agencies will have primary responsibility for ensuring that day-to-day projectmanagement proceeds smoothly. They will work closely with the Secretariat, which will be responsible foroverall coordination, to ensure project objectives are being addressed, and that the impacts of projectinvestrnents are being appropriately monitored.

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4.2 Project management:

Because of the multiple institutions which are to be involved in project implementation the effectivecoordination of project activities amongst implementing partners will be key. With this in mind,Government has concluded that coordination and day-to-day project management responsibilities shouldrest with a Secretariat of the Steering Committee, which reports to the Ministry of Finance.

The Secretariat, which has already been established, comprises a Chairman and Project Coordinator, anAdministrator/Procurement Specialist, an Accountant, and a Monitoring and Evaluation Specialist. Termsof Reference for these positions are included as Annex 8 to the Project Implementation Plan. It is envisagedthat the Project Coordinator will have primary responsibility for overall coordination and management. TheAdministrator/Procurement Specialist and Accountant will be responsible for overall financial andprocurement management activities. Costs for Coordination and Management have been included in thecost summary. It is assumed that all equipment and material requirements will be met from other projectcomponents. The positions of Project Coordinator, Administrator/Procurement Specialist, and Accountanthave already been filled. The Monitoring and Evaluation Specialist will be recruited within 3 months ofproject effectiveness.

In the interest of sustainability, existing staff may be assigned to take on project managementresponsibilities, and staff may be recruited on a contractual basis only if absolutely essential. In any event,staff with project coordination responsibilities must be well-trained and capable. The World Bank'sResident Mission in Eritrea will work with staff from the Secretariat as needed to build its capacity forprogram management, particularly with regard to procurement and accounting practice.

4.3 Procurement issues:

Procurement financed under the project will be limited to recruitment of consultants services, officeequipment, a limited number of vehicles, some civil works, and incremental operating costs. TheAdministrator/Procurement Specialist has been recruited by the Secretariat for the Steering Committee onCultural Heritage and is to be responsible for ensuring that procurement for works and goods is carried outin accordance with the Bank's Guidelines for Procurement under IBRD Loans and IDA Credits (datedJanuary 1995 and revised in January and August 1996, in September 1997, and January 1999).Consultancy services financed by IDA will be procured in accordance with the Bank Guidelines for theSelection and Employment of Consultants by World Bank Borrowers (dated January 1997, and revisedSeptember 1997 and January 1999).

A General Procurement Notice will be published in United Nations Development Business (UNDB) andwill include a description of required services or goods, the client agency, and the budgeted cost. Thisnotice will be updated every year during the execution of the projects until all contracts and assignmentshave been procured. In the case of contracts which are expected to cost more than $200,000 equivalent,Specific Procurement Notices will be issued seeking expressions of interest through the national press.

To the extent possible, procurement arrangements have been designed to respond to the need for flexibleuse of procurement methods, given the institutional capacity of the implementing agencies. A detailedProcurement Plan, based on the inputs identified in Project Implementation Plan will be prepared within 6months after Credit effectiveness, and this will be revised annually during preparation of the Annual WorkProgram and Budget. Whenever possible, procurement items will be consolidated into appropriately-scaledcontracting packages.

A Procurement Capacity Assessment has been completed and is in the Project Files.

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4.4 Financial management issues:

A Financial Management Capacity Assessment has been carried out and is available in the Project Files.

This Assessment concluded that, while the Secretariat's financial management system is basically sound, itis currently not capable of complying with Loan Administration Change Initiative (LACI) Guidelines. Thefollowing steps will need to be carried out before the Secretariat is able to meet LACI requirements:

* development of a Chart of Accounts, appropriate for the project;* development of a LACI compatible financial reporting format acceptable to the Bank;* preparation of a Financial Procedures manual.

Provided these steps are taken, and experience.is gained in working with LACI-format reportingmechanisms, it is envisaged that the Secretariat should be LACI capable within 18 months from the date ofeffectiveness. Once the Secretariat is assessed to be LACI capable, the Credit Agreement may be amendedto reflect that disbursements are to take place on the basis of Project Management Reports thereafter. Inthis event, it envisaged that the project will adopt streamlined disbursement procedures once LACIGuidelines have been met. The decision to adopt streamlined disbursement procedures will be made inconsultation with a Bank Financial Management Specialist who will:

* review experience to date with the quality of withdrawal submissions, operation of the SpecialAccount, SOE submissions and documentation retention in the field, and the general effectiveness ofproject management and accounting staff,

* ensure that the Special Account has been reconciled and any outstanding issues resolved;3 review supervision reports to assess implementation progress and issues;* review any available audit information, as well as any other financial reports, with a view to forming

an opinion on the reliability of project accounts.

Once the Secretariat is assessed to be LACI capable, the Credit Agreement will be amended to reflect thatdisbursements are to take place on the basis of Project Management Reports thereafter.

It is envisaged that one Special Account, acceptable to IDA, will be established. The authorized allocationof this accounts will be US$500,000. Requests for replenishment of the Special Account should besubmitted to IDA every month under normal circumstances, but in any event, not less frequently than onceevery three months. All applications to withdraw proceeds from the Credit will be filly documented toIDA, except for expenditures for incremental operating costs, training, and for contracts with a value of$50,000 or less for goods and equipment, $75,000 or less for civil works, and for consultant services underUS$100,000 for firms and US$50,000 for individuals for which reimbursements may be made againstStatements of Expenditure (SOEs). Supporting documentation will be retained by the Secretariat and willbe available for inspection and review as requested by IDA Supervision Missions and by project auditors.

Five disbursement categories are envisaged: civil works, goods and equipment, consulting services andtraining, grants, and incremental operating costs.

5. Environmental: Environtmental Category: C (Not Required)5.1 Summarize the steps undertaken for environmental assessment and EMP preparation (includingconsultation and disclosure) and the significant issues and their treatment emerging from this analysis.

There are not expected to be any significant negative environmental impacts of the project. Possible minorimpacts may be associated with site conservation activities, but these are expected to be negligible, and in

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any event are to be carried out under the immediate supervision of the National Museums of Eritrea. Theproject has also been reviewed by the Department of Enviromnent of the Ministry of Lands, Water andEnvironment, which has also classified the project as a Category C project (consistent with the NationalGuidelines for Environmental Impact Assessment), and has reviewed and commented upon the ProjectImplementation Plan.

5.2 What are the main features of the EMP and are they adequate?

n/a

5.3 For Category A and B projects, timeline and status of EA:Date of receipt of final draft:

n/a5.4 How have stakeholders been consulted at the stage of (a) environmental screening and (b) draft EAreport on the environmental impacts and proposed environment management plan? Describe mechanismsof consultation that were used and which groups were consulted?

n/a

5.5 What mechanisms have been established to monitor and evaluate the impact of the project on theenvironment? Do the indicators reflect the objectives and results of the EMP?

n/a

6. Social:6.1 Summarize key social issues relevant to the project objectives, and specify the project's socialdevelopment outcomes.

A key element of activities associated with site conservation, and with the conservation of the built heritage,relates to the idea of developing a sense of stewardship for these assets. Both of these components areexpected to involve close work at the community level, to find ways of jointly managing cultural assets.This may involve benefit sharing activities (especially when tourism potential can be exploited) or makingmodest investments in sanitation and water supply to improve the local environment around threatened sitesand buildings. A pilot inventory of buildings within the historic perimeter of Asmara, for example, focusedon service delivery, and how this might be improved through modest investments.

The key social outcomes that can be expected to come from the project would be the development of:

* bonding social capital (bringing about cooperation within groups, as in the community-baseddevelopment activities and through the development of educational materials based on oral traditions);

* bridging social capital (bringing about cooperation between groups);* civic engagement and voice at the community and local levels; and* cohesion around a common awareness of Eritrea's long and rich history and heritage.

6.2 Participatory Approach: How are key stakeholders participating in the project?

Communities adjacent to threatened sites in Qohaito, Nakfa, and around Sembel wiU be involved in projectimplementation. It is expected that the project will cany out social assessments in these sites to find waysof more fully encouraging stewardship for these important sites. The Built environment component willfocus on the involvement of key stakeholders and communities in the use of public buildings and spaces,and will provide resources to encourage community-driven stewardship.

6.3 How does the project involve consultations or collaboration with NGOs or other civil societyorganizations?

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With regard to the living cultures component, several local institutions are expected to be closely involvedin implementation, including the Mrara Arts Society and Mahber Fikri Sine-Tibeb (lit. 'the Art Lover'sSociety). The Debre Bizen Committee, established to provide civil society support for the monastery ofDebre Bizen, will be closely involved in activities with the monastery, financed by the project.

6.4 What institutional arranigements have been provided to ensure the project achieves its socialdevelopment outcomCs?

Social assessments are considered a key part of the site conservation and planning component, and the builtheritage component heavily derives from the results of the inventory and social and economic surveycompleted widtin the historic perimeter of Asmara. The project will include monitoring of social impacts,as part of its monitoring and evaluation work.

6.5 How will the project monitor performance in terms of social development outcomes?

An M&E specialist is to be employed to develop and implement monitoring mechanisms, derived fromsocial assessments and household studies which have already been, or will be, completed. The M&Especialist is expected to work closely with social scientists employed through the project in doing this.

7. Safeguard Policies:7.1 Do any of the following safeguard policies apply to the project?

Environmental Assessment (OP 4.01, BP 4.01, GP 4.01) O Yes * NoNatural habitats (OP 4.04, BP 4.04, GP 4.04) 0 Yes 0 NoForestry (OP 4.36, GP 4.36) 0 Yes 0 NoPest Manaaement (OP 4.09) 0 Yes 0 NoCultural Property (OPN 11.03) 0 Yes * NoIndigenous Peoples (OD 4.20) 0 Yes * NoInvoluntary Resettlement (OD 4.30) 0 Yes * NoSafety of Dams (OP 4.37, BP 4.37) 0 Yes * NoProjects in Lnternational Waters (OP 7.50, BP 7.50, GP 7.50) 0 Yes 0 NoProjects in Disputed Areas (OP 7.60, BP 7.60, GP 7.60) 0 Yes * No

7.2 Describe provisions made by the project to ensure compliance with applicable safeguard policies.

The project is being implemented in part by the National Museums of Eritrea, which has primaryresponsibility for safeguarding heritage sites and cultural property.

F. Sustainability and Risks

1. Sustainability:

This section is not to be completed in LIL PAD.

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2. Critical Risks (rcflecting the failure of critical assumptions found in the fourth column of Annex 1):

Risk Risk Rating Risk Mitigation MeasureFrom Outputs to Objective1. Site Planning and Conservation N Social assessment and a focus on conununity

role in site management is a feature of projectConserved sites will be attractive to design.tourists.

Tourism benefits are expected to be generatedCommunities develop a sense of by collaborating with local tourism industry.stewardship for important cultural assets.

Other partners are being identified to assist inLocal benefits can be generated as an site conservation.outcome of better site conservation.

Chosen sites are popularly recognized for theirOther partners and institutions in Eritrea importance to the national heritage.are willing to collaborate in culturalheritage conservation activities. Community-based approaches to niche market

tourism development will be encouraged.Too-rapid tourism development threatenslocal cultures.

2. Conserving the Built Environment M Custodial assignments are more cost-effectivefor investors than new construction or

Custodial assignments will be welcomed conventional rentals.by potential partners.

Public information and training of architects andIncentives for conservation and adaptive designers will improve knowledge of the valuere-use are greater than incentives for of traditional building styles.'upgrading' old buildings.

Building ownership is considered whenBuilding ownership is not a constraint to identifying buildings for conservation.conservation.

Civic engagement and a community-orientationInterest in the architectural heritage of will be central to the design of localMassawa and Asmara can be developed conservation initiatives.among other partners.

Insufficient involvement of communitiesand neighborhoods in planning and"owning" the conservation agenda

Asmara's competitiveness andattractiveness to foreign investors willdepend on maintaining its "unique senseof place."

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3. Supporting Living Culture N Partnerships with University, Culture Bureau,and other Departments of the Ministry of

Catalytic role of several key partners can Education are already established.be built upon.

Complementarity between oral literatureand literacy programs can be exploited.

4. Documentation and Information N Development of legal instruments depends onManagement wider movement toward legal reforms.

Legal processes can be implemented to Training has been designed to meet specificbring about national system of records capacity constraints.management.

Capacity constraints can be addressedthrough training.

From Components to OutputsLACI requirements can be met or an M Financial management systems are beingaction plan can be put in place to bring designed to be LACI compliant, so that theythe project into LACI compliance. won't have to be retrofitted.Mechanisms for collaboration and N Steering Committee on Cultural Heritage to playcooperation between multiple stakeholders key and critical role.are clear.Counterpart funds are made available in a S Steering Committee is under the auspices of thetimely manner. Ministry of Finance, but funding constraints are

expected to be acute.Needed staff are hired in a timely manner M Upstream recruitment process alreadyby implementing agencies. underway.

Overall Risk Rating N

Risk Rating - H (High Risk), S (Substantial Risk), M (Modest Risk), N(Negligible or Low Risk)

3. Possible Controversial Aspects:

None identified.

G. Main Credit Conditions

1. Effectiveness Condition

A Project Account has been opened and the Initial Deposit paid in.

2. Other [classify according to covenant types used in the Legal Agreements.]

None.

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H. Readiness for Implementation

0 1. a) The engineering design documents for the first year's activities are complete and ready for the startof project implementation.

K 1. b) Not applicable.

L] 2. The procurement documents for the first six months' activities are complete and ready for the start ofproject implementation; and a framework has been established for agreement on standard biddingdocuments that will be used for ongoing procurement throughout the life of LIL

0 3. The LIL's Implementation Plan has been appraised and found to be realistic and of satisfactoryquality.

El 4. The following items are lacking and are discussed under loan conditions (Section G):

1. Compliance with Bank Policies

12 1. This project complies with all applicable Bank policies.El 2. The following exceptions to Bank policies are recommended for approval. The project complies with

all other applicable Bank policies.

Peter A. Dewees o . Sullivan Oey Astra MeesookTeam Leader Sec r Manager Country ManagerlDirector

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Annex 1: Project Design SummaryERITREA: Cultural Assets Rehabilitation Project

Sector-related CAS Goal: Sector Indicators: Sector/ country reports: (from Goal to Bank Mission)To support Government's * National, regional, and * Targeted ESW (i.e. Cultural asset managementcultural asset rehabilitation local governments assessment of economics contributes to increasedand conservation agenda with actively involved in of tourism; assessments income through tourism,regard to cultural asset of education and building trades development,

* capacity building; management; literacy); literacy and education* increasing sources of * Greater stewardship of * Public expenditure programs, and general growth

growth; and historic sites and built reviews; and development.* human resources heritage; * Country Economic

development. * Integration of cultural Memorandum. Political stability in the regionasset conservation with creates an enablingtourism initiatives, environment for tourism

* Increased contribution development.of building trades tolocal development andincome generation.

Follow-on DevelopmentObjective:

* Scope for expandedaction is identified;

* Pilot initiatives areassessed for usefullessons, and used as thebasis for a widerprogram of support;

* Additional financing issought from otherdonors.

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K~y Perfonace 0-, .. .'....I4iera~~hyoI Obetvs.I4ctr onitoring' & valuato ric Aupna

Project Development Outcome I Impact Project reports: (from Objective to Goal)Objective: Indicators:To test out and develop the * Good practices for * Project M&E 'good Partnerships have the

means for more fuuy cultural asset practice' reports potential for bringing aboutintegrating the conservation conservation activities prepared for Qohaito, cultural asset conservation.and management of Eritrea's are identified; Asmara, and Nakfa;cultural assets into local and * Regional and local * Monitoring of Regional and localnational economic governments gain involvement of regional governments share thedevelopment. perspectives on how and local authorities in national cultural asset

cultural asset implementation/ management agenda.management can involvement in thegenerate benefits; Steering Committee;

* Partners in the private * Reports on custodial Private sector and othersector take a more active assignments of partners have the capacity torole in cultural asset architecturally bring resources to bear onconservation; significant buildings; cultural asset management

* Other local institutions * Monitored progress of and conservation.are more fully involved museum development Private sector and otherin cultural asset and curriculum changes. partners are willing to focusmanagement and use. on conservation of older

buildings during upgrades andrenovations.

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Output from each Output Indicators: Project reports: (from Outputs to Objective)Component:1. Appropriate system has * Model planning process M&E of site conservation Conserved sites will bebeen tested and is in place for launched and development process. Site attractive to tourists.cost-effective comnmunity-based site inspections. Regular projectcommunity-based site conservation activities reporting. Communities develop a senseconservation in Qohaito and launched in Qohaito and of stewardship for importantother pilot sites (particularly other pilot sites; cultural assets.sites from the independence * Conservation and M&E reports. Sitewar from prior to 1991). maintenance of selected inspections. Local benefits can beProcess for establishment of structures built during generated as an outcome ofNational Museums is the independence war is better site conservation.underway; underway;

* First phase of site M&E reports. Regular Other partners and institutionsconservation activities is communication with partners. in Eritrea are willing tolaunched; visitor collaborate in cultural assetinterpretation work is management andcompleted; conservation activities.

* Additional partners are M&E reports for thisinvolved in component. Site inspections.implementation of siteconservation plans;

* Community-based M&E reports. Projectactivities are supervision.incorporated intoimplementation;

* Local visitor centers M&E reports. Projectconstructed and supervisionoperational;

* National museum M&E reports. Projectfacilities are renovated; supervisionRegional and nationalstaff trained in museumcuration.

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2. Activities to conserve the * Guidelines for building M&E reports. Project Custodial assignments will bearchitectural heritage of conservation are supervision; welcomed by potentialAsmara and Massawa are prepared and partners.underway, which focus on disseminated;renovation and adaptive re-use * Conservation and Inventory reports. Planning Incentives for conservationof architecturally significant maintenance of and implementation reports. and adaptive re-use are greaterbuildings; buildings within the than incentives for 'upgrading'

historical perimeter old buildings.of Asmara and the oldtown of Massawa Building ownership is not aidentified through constraint to conservation.inventory processis underway; Interest in the architectural

* Training program in M&E reports. Regular project heritage of Massawa andconservation and reporting. Asmara can be developedrestoration of historical among other partners.buildings is in place;

* Custodial assignments Reports on trainingof important buildings component. M&E reports.are made andconservation isunderway;

* Traditional building Project supervision. M&Eskills are strengthened reportsthrough skillsdevelopment andtraining

* Partnership Development partnersarrangements for meetings; dialogue with otherbuilding conservation donors.are implemented(building fund,conservation awardprogram, etc.)

* Other funding partners M&E reports. Projectare identified to support supervisionbuilt heritageconservation.

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3. Local institutions active in * Program of training in M&E reports. Project Catalytic role of several key

the arts community, in oral oral history and oral supervision. partners can be built upon.

history, oral literature and literature and Planning and implementation

traditions are fully mobilized traditions is in place. reports. Complementarity between oral

to collect and integrate * Oral history, oral M&E reports. Regular project literature and literacy

cultural concerns into training literature and traditions, reporting. programs can be exploited.

and program development. including the materialaspects of culture e.g.traditional crafts isgiven prominence atnational level.

* Commurity theater is Reports on training. M&Emobilized to focus on reports.cultural assets,conservationand management.

* Folklore of all ethnic Project supervision. M&Egroups is collected. reports

* Management of oral Project supervision. M&Ehistory, oral literature reportsand traditions isstrengthened.

* Oral literature is given Project supervision. M&Eprominence at the reportsnational level throughperformances;

* Community theater is Project supervision. M&Emobilized to focus on reportscultural assetconservation andmanagement;

* Training in oral history Project supervision. M&Eis provided; reports

* Asmara Arts center in Project supervision. M&Eplace and operating; reports

* oral history of four Project supervision. M&Eperiods (i.e. pre reportscolonial, Italian, Britishand Federal, andEthiopian annexationand armed struggle,1961-1991) is collected.

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4. The framework for the * Priority setting for Project supervision. M&E Legal processes can beestablishment of national and investments in archives reports implemented to bring aboutregional archives is in place, development is national system of recordsand there is improved capacity completed. management.for records management in * Training in archives and Reports on training. M&Epublic and private archives. records management is reports. Capacity constraints can be

provided; addressed through training.* Investments in improved Project supervision. M&E

records management reportstechnologies are made;

* Asmara municipal Project supervision. M&Ebuilding records are reportsreorganized.

* Inventory of arts and Project supervision. M&Emanuscripts found in reportsreligious institutes (bothChristian and Muslim)is undertaken.

* Appropriate storage Project supervision. M&Efacilities for safe reportskeeping of parchmentsand othermanuscripts is built inselected monasteries.

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Hiearh f bJct 0sndcaornionio ring 8 Ealutin Project Components I Inputs: (budget for each Project reports: (from Components toSub-components: component) Outputs)

(US$ million) Supervision Missions; LACI requirements can be1. Site planning and IDA: 1.4 discussions with project staff met or an action plan can beconservation pilots GOE: 0.1 and stakeholders; periodically put in place to bring the

Subtotal: 1.5 reported in PSRs; project into LACI compliance.

2. Conserving the built IDA: 2.2 Regular PMRs. Mechanisms for collaborationenvironment GOE: 0.1 and cooperation between

Other: 0.1 multiple stakeholders areSubtotal: 2.5 clear.

3. Support for living cultures IDA: 0.5 Counterpart funds are madeGOE: 0.02 available in a timely manner.Subtotal: 0.52

4. Documentation, and IDA: 0.5 Needed staff are hired in ainformation management GOE: 0.05 timely manner by

Subtotal: 0.55 implementing agencies.5. Project management IDA: 0.3

GOE: 0.04Subtotal: 0.34

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Annex 2: Detailed Project DescriptionERITREA: Cultural Assets Rehabilitation Project

This Annex is condensed from the Working Papers which describe each project component morefully, and which comprise part of the Project Implementation Plan. Project costs includephysical and price contingencies.By Component:

Project Component I -US$1.50 million

Site Planning, Conservation, and Museum Development

Background

The Site Planning, Conservation, and Museum Development component of the Cultural AssetsRehabilitation project is designed: a) to meet conservation needs, through surveys and growth-orientedcommunity-based planning and conservation processes, at three pilot sites in Eritrea (Qohaito, Nakfa, andin sites close to Asmara; and b) to support a process for the planning, design, and rehabilitation of abuilding in Asmara to become the main exhibition space for the National Museums of Eritrea better toenable it to deliver on its mandate of education, rescarch and exhibition, The community-basedmanagement planning process is expected to provide a comprehensive, participatory framework for siteplanning and conservation at pilot historic sites. The planning process will aim to build on Eritrea's richlocal knowledge while strengthening communities' abilities to assess, prioritize, plan, organize and evaluatethe conservation of their cultural assets in the context of their economic growth priorities. The project willbuild on the proudly-held traditions which have supported participatory processes for communitydevelopment. This participatory tradition derives from the long struggle for independence and has featuredstrongly in development activities since independence in 1993.

Overview of the sites of Qohaito, Asmara, and Nakfa

The ancient city of Qohaito is located at the crossroads of the main communication axes between theancient Red Sea port city of Adulis to the north and Matara and Axum to the south. This location made itone of the most important political centers in the region. At one time, Qohaito appears to have been agarden city surrounded by many towns and hamlets, now characterized as a cluster of sites over an area of17 km by 4 km. A recent archaeological survey and inventory was carried out by Humboldt University ofBerlin, in collaboration with the Kunsthistorisches Musetun of Vienna, the Technical University of Berlin,and the National Museum of Eritrea from 1996 to 1998. This survey revealed over 650 structures withinthe area of the Qohaito site which makes Qohaito one of the most extensive archeological sites ofsignificance in Africa. Settlement around Qohaito can be dated as far back as 12,000 BC (from nearbyrock paintings), but the bulk of the most important structures at the site date from 500 BC to 700 AD.

The major conservation threat to this site is the unknowing destruction of remains by the local community.Houses have been built on or near sensitive archaeological areas, and in many cases, residents haveunintentionally destroyed sites by excavating them for cut stones to build steps, doorways, wall comers,and lintels for their homes. In a number of cases, ancient buildings have been excavated for use as cattleand sheep corrals and humani residences. The problem has been reduced over time with the growingawareness of the community as to the importance of the site, but as yet, the problem has not beencompletely solved. It is expected that over the course of the community based management planningprocess, solutions will be found to ensure that the development needs will be met without damaging the

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important historic fabric.

Recent archeological studies in the vicinity of Asmara have identified several important sites, among themost important of these of which is Sembel (located on a hillside overlooking the contemporary communityof Sembel) around 2 km west of the airport. Evidence suggests that this site, on the outskirts of the capital,may be the remnants of one of sub-Saharan Africa's oldest settled agricultural communities. The dominantparadigm about the rise of complex societies in this part of Africa has been undermined by these finds,which strongly suggest local origin not linked to foreign influence. Radiocarbon tests date the settlementsite at Sembel to between 400 and 700 BC. Samples collected from the site show the settlement'sinhabitants ate cows and goats, engaged in agricultural activity and built stone houses with mud mortar.Gold earrings, bracelets, rings, copper and bronze daggers and multiple-neck pottery jugs dated to 400 BCduring the pre-Axumite period (500 BC. to 0 AD.) were found in one excavation, which was possibly aburial site. The sites at Sembel are littered with stylized stone heads of bulls, some the size of a thumbnail.The great variety in the heads suggests a connection to some sort of ritual.

As Asmara rapidly expands into these adjacent areas, the immediate needs in Sembel and ofher sites (oundAsmara are for rapid inventories and surveys of the sites, so that the impacts of future development onthese sites can be mitigated. Extensive damage to these and other sites has already taken place, particularlyas a result of rock quarrying, road building, dam construction, and mechanized agriculture. As urbanimprovements are undertaken in the more recent downtown parts of Asmara -- roads, telecommunicationsimprovement, and water and sewerage -- the National Museum must be in a much better position toevaluate and understand the archeological finds which are likely, and to mitigate the impacts of theseimprovements. A systematic inventory of the greater Asmara area, coupled with an assessment ofarcheological significance is immediately needed.

Sites close to the town of Nakfa in the northwest represents an important element of modem culturalheritage for the Eritrean people. The site symbolizes Eritrean perseverance over adversity, and as such is asymbol of a culture of independence, self-determination, and resistance to oppression that is central to thecultural fabric of Eritrea today. The site is composed of a series of underground structures, as well astrenches that extend for 9 to 10 km., near the town of Nakfa from which the independence war was wagedfrom 1979 to 1988, and into the early 1990s. What makes these sites special, however, is less their role inwar, but rather their role in the preservation of Eritrean culture at the time of the struggle. A vastinfrastructure of underground schools, hospitals, theaters, and other structures were built to cater to theneeds of any normal society. The Nakfa complex is quickly deteriorating and disappearing. For example,the wooden roof supports over many of the underground facilities have been removed for fuel. In addition,extensive networks of trenches have caved in or been destroyed for the same reason or due to neglect. TheNational Museum believes that if action is not taken, in another 5 to 10 years, there will be few tracesremaining of this network.

The National Museums of Eritrea

The National Museum was established in January 1992. Originally housed in the former Governor'sPalace in Asmara, in 1996 the Museum and its collection was transferred to the premises of the disusedComboni Sister's convent school in the western section of the city. A subsequent UNESCO reportappraised the facility and discussed its future requirements, while emphasizing the Museum's threeimportant functions: education, research, and exhibition. Largely because of the lack of an adequatefacility, the museum's mandate has not been addressed. The current museum facility is not open to thepublic although special visitors are allowed to see the collections in their storage rooms. The collectioncontains archaeological artifacts including pottery, inscribed stones, pillars, statuary, beads, bracelets, and

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rings from the Axumite and pre-Axumite periods. The etlmographic collection includes jewely, musicalinstruments, pieces of architectural decoration, etc. There is also a natural history collection and a largecollection of artwork that was created during the independence struggle. The collection is only partiallyinventoried and work continues on this task. The Director of the National Museum is also the head ofdepartment of the Archaeology Department at the University of Asmara. There are 9 staff members underhim, but only 2 have formal training in museology or related disciplines. There is however, a new programin cultural asset management and conservation at the University within the Department of Archaeologywhich is producing more trained staff, both for the museum itself and the management of sites outsideAsmara.

The Steering Committee on Cultural Heritage has recommended the establishment of a new main exhibitionspace in a disused building in the center of Asmara, known as the Spinelli Warehouse, originallyconstructed during the Italian colonial period. It was completed in 1940, by the Societa Anomine Industriee Commerci Africani (SAICA), of which Eugenio Spinelli was the director. The architect, namedBeltrame, incorporated traditional styles of construction, the so-called 'moikey-head' style, into the walls ofthe warehouse, by alternating cut stone with rows of brick. As such, it is a representative -- and somewhatinnovative-- architectural style from the period. Centrally located, the building is also easily accessible tovisitors and residents of Asmara. The warehouse has a covered floor space of nearly 4,000 m2.

Component Activities

Community based management planning

The activities within this sub-component should be seen as contributing to the overall goal of providingmechanisms for better growth-oriented planning and management of cultural assets at the selected pilotsites within an overall development framework. Three interrelated activities are foreseen within thissub-component:

* the implementation of a systematic pilot archeological site inventory of the greater Asmara area to laythe ground to conserve, protect, and interpret these sites, and to use the inventory process to pilot andbuild capacity to undertake this type of activity; It is envisaged that a community-based managementplan would be a longer term objective for which the pilot inventory would lay the groundwork;

* the implementation of a growth-oriented community based managemnent planning exercise for theQohaito and Nakfa pilot sites (where inventories have already been tentatively completed), consideringthe management, conservation, and interpretation needs as well as other development activitiesidentified by the community within the process;

* the implementation of the short term actions for management, conservation, and development,addressing priority needs identified as an outcome of the management planning exercise.

Priority actions which would be financed by the project would involve the pilot inventory work aroundAsmara, and the development of community based management plan for the selected sites of Qohaito andNakfa. An emphasis should be placed on the participatory nature of the process, with a group comprised ofcommunity members and other stakeholders involved in the site, being set up to oversee the plan creation.Issues addressed by the planning process would be the management, conservation, monitoring,maintenance, interpretation and presentation, and visitor management at the sites, and critical developmentissues identified by the community as part of this participatory process.

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Museum planning and design

The activities within this sub-component should be seen as contributing to the goal of improving themanagement and interpretation of Eritrea's cultural heritage for presentation to both Eritrean andinternational visitors. The activities foreseen within this sub-component include:

* the confirmation or revision of the Museum's mission statementlmandate and the development of afunctional plan including space requirements for the various activities to be undertaken by theMuseum;

* the development of a management structure for the Museum which allows it to carry out each of itsmandated activities;

* the planning and design of renovationsfor the museum to greatly strengthen the interpretation andpresentation of Eritrean cultural in its various fonns;

* the implementation of thefirst phase of renovation work for the new museum facility;* development of ties with secondary education institutions in Asmara.

This project sub-component will provide assistance to Government for the planning, design, and partialrenovation of a new museum facility for the National Museums in Asmara. The output of this activity willa policy framework for the museum, complete architectural plans, complete exhibit plans, the selection andtraining of staff, implementation of the first phase of activity, and a fundraising plan for future phases.Some of these issues have already been dealt with in some detail in the two UNESCO reports that havebeen prepared for the National Museums, and these documents will be used as a basis on which to start thework.

Project Component 2 - US$2.50 million

Conservinit the Built Environment

Background

The aim of the Built Environment component is to promote urban economic growth and poverty reductionwhile seeking to conserve the unique architectural heritage of Asmara, Massawa and other cities. Thiscomponent emerges from a deep consciousness about the need to preserve and maintain historicalarchitecture, neighborhoods and streets through out Eritrea, coupled with the firm belief that urban growthand poverty reduction go hand in hand. Asmara, in particular is acknowledged to have a specialarchitectural and urban form, which has survived, against all odds over many years of domination withlittle change. It is believed that Asmara can continue to serve as the capital of Eritrea and as the home ofthousands of its citizens, both maintaining its unique character and offering the potential for targetedgrowth in particular sectors.

Growth and development of Asmara

Asmara started as a combination of villages around the site of St. Mary's Orthodox church sometime in the16th century, following on centuries-old settlement of nearby sites such as Sembel. Little is known aboutthe development of Asmara during the four centuries that followed. In 1866 it became the generalheadquarters of Bahr Negash Gurade Zeray, the most important traditional ruler of the central highlandareas. In 1873 the Egyptians, who had occupied the coastal zone, raided Asmara causing the population tovacate the area. By 1885 Italy had occupied Massawa and four years later, in 1889 an Italian forcecommanded by General Baldissera occupied Asniara. Baldissera built his fortification at foot of Emba Bet

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Meka, now the site of the Ministry of Information. Asmara was for the most part a small town, until theearly 1930s. Between 1933 and 1938, a significant rise in the Italian colonial population from 4,000 to53,000 took place, and this coincided with a construction boom which greatly contributed to the town'scurrent form.

Particularly when the Italian invasion of Ethiopia was completed in 1936, an important set of initiatives intown planning and architecture for Italy's colonies were set in motion. One of these was the competition forthe master plan of Asmara. The Terms of Reference for the town planning competition were ideologicallyclose to fascism, i.e. the separation of the races and the adulation of the grandeur of the fascist State. Thearchitectural ideologue behind this effort, was Marcelo Piacentini, one of Fascist Italy's foremost plannersand architects and a member of the central government's council on town planning.

By the time the town planning process got underway in Asmara, fascism was facing greater challenges inEurope, and far from Rome's watchful eyes, the Governor, Giuseppe Daodiaci, and his somewhat moreenlightened colleagues were left undisturbed to do what they felt was in the best interest of the residents ofAsmara. One of the remarkable characteristics of Asmara which emerged out of this period and which hascontributed so much to its style and sense of urban cohesion is the fact that the city successfully combinesresidential uses, with commercial, recreational, and administrative uses. Offices are seldom more than a 3minute walk from shops or from Cafes. Residences and businesses function side-by-side. Parks and openspaces are integrated into the whole of the city fabric. It is this sense that these different sectors mustcontinue to function side-by-side, instead of relegating houses to residential suburbs, shops to commercialcenters, and offices to administrative building clusters, while at the same time preserving some green spacesand common areas as public amenities.

Another feature of the construction boom of the 1930s was that the colonial government was willing toallow radical architectural experimentation. A generation of young avant-garde architects from the Italianand German internationalist movement found a willing market for their building designs -- which in manyinstances couldn't be built in architecturally conservative Europe. Asmara, then, became the site forarchitectural innovation and experimentation -- a fact which also contributes to the unique 'feel' of the cityand its urban design. This combination of factors makes Asmara unique in all of Africa, and a destinationfor architects and scholars keen on understanding this period of architectural history.

The current estimated population of Asmara is about 450,000 or roughly 15% of the total population of thecountry. Asmara accounts for almost 70% of the country's urban population, and is expected to growsignificantly both in area and in population. Already, 13 of the rural villages that surrounded Asmara,forming its farming hinterland have been incorporated into the municipal administration. The city continuesto attract the bulk of new investment, and new job creation is also concentrated within the municipalboundary. There is an acute awareness of the need for a better and more sensible growth path in Asmara,one which maintains its unique historic character, while building on its potential as a locus of economicchange in Eritrea.

As part of the effort to conserve the special architecture of Asmara, a historic perimeter is to be designated,coinciding with boundaries of the old center of the city where most colonial buildings are situated, andwhich covers an area of between 4 to 8 square km. A preliminary survey of buildings within the historicperimeter has been completed. Over 400 buildings of architectural significance within the perimeter havebeen identified, and a preliminary classification of these buildings by architectural style and byconservation status has been completed. It is expected that this inventory will provide the basis for futureconservation.

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Social and economic profile of the historic perimeter

In an effort more fully to understand the nature of the urban management challenge, the physical inventoryof buildings within the historic perimeter has been complemented by a householdlenterprise survey ofresidents and businesses to develop a social and economic profile of the residents and businesses of thispart of Asmara. The survey has established some general parameters, including: the social and economicstatus of residents; the condition and status of public amenities, sanitation, water supply, domestic energy;ownership, rental, tenancy, status of residences and enterprises; income levels, and the portion of incomedevoted to rent; the nature of income generation and the status of poverty within the historic perimeter; thenature, scope and size of enterprises and the status of employment; and extent of public ownership. Thedatabase which has been established will be used in further planning and implementation of the BuiltHeritage Component of the project.

Preliminary findings from the survey have established that the population which is resident within theHistoric Perimeter is around 13,000, in 1,492 residences. There are another 953 small businesses orenterprises. With regard to water and sanitation, around 10 percent of respondents within the historicperimeter have no access to drinking water supply. Around 56 percent of respondents had no properbathing facilities, while around 70 percent of respondents had no facility for the disposal of human waste.Only a very small percentage of the buildings inventoried have no access to solid waste collection services(0.5 percent).

Stall owners in informal markets employ as many as 4,000 people, many of them women. Income in thisgroup is low, and periodic unemployment is common. Enterprises are clustered in three centers: EndaAhmelti (fruits and vegetables); Medeber (stalls for recycled household goods, workshops, pepper andspice grinders); and Baranda (stalls for pulses, cereals, and vegetables). These three clusters of enterprisesforms a backbone of the informal business sector of Asmara. Rent is paid to the Zoba administration, andranges from 9 to 30 Nakfa per month; gross income is thought to be much lower than formal sectorenterprises. Employment in the sector is highly volatile, and depends very much on supplies and prices ofcommodities.

Alithough this analysis is preliminary, it does suggest that any significant effort geared toward preservingbuildings in the historic perimeter must critically focus on creating the incentives for private owners,businesses, and residents, properly to conserve buildings of architectural and historic importance, todevelop public-private partnerships which help in doing this, and to focus on how basic services can beimproved to these households. Finally, the ownership status of many buildings remains unresolved, andmust be settled as a matter of priority as an important prerequisite for building conservation.

Prioritiesfor conservation and investment

Eritrea's built environment has been neglected for decades. Little or no conservation work has beenundertaken in the recent past, and delays in future conservation will result in the further deterioration of thebuilt environment. There is little capacity for undertaking building conservation, though there areenormous needs for doing so. Government has taken the position that investnents in conservation of thebuilt heritage must be expected to increase income and to reduce poverty. Behind this idea is that aconscious and functional partnership between government and the people of Asmara and Massawa, inparticular, should be the basis for achieving the objectives of protecting the built heritage of these cities.

If investments in the conservation of the built heritage are to have an impact on reducing poverty, thepoorest must be able to take advantage of opportunities posed by these investments. Government has

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proposed, then, that physical conservation supported through the project (as well as by other initiatives)would be targeted at the unemployed, for example, those who live within Asmara's historic perimeter andthe informal sectors operating in Baranda, Medeber, and Enda-Hamli, and would focus on, among otherthings, providing training in the building trades and in other skills.

Component Activities

The objective of the Built Heritage Component of the Cultural Heritage Project is to provide support fortesting several approaches, on a pilot basis, for integrating poverty reduction and growth objectives withthe conservation of the unique architectural heritage of Asmara, and for developing future interventions inMassawa and other sites. The Built Heritage component of the project is expected to comprise 3 set ofactivities: supporting enterprise development; improving the delivery of community and public services;training and capacity building.

Supporting enterprise development

The activities within this sub-component will focus on strengthening the role of small businesses andcommunities within the historic perimeter in the conservation of buildings and architecture. The project isexpected to finance:

* the design and pilot implementation of the Eritrean Conservation Fund to support for public-privatepartnerships in restoring buildings and public spaces for adaptive re-use. The fund will have acommunity-based component to it, to provide resources for demand-driven community-centeredactivities to bring about local improvements in the urban fabric. It is envisaged that the Fund willprovide grants to the private sector and to communities on a cost-sharing basis to implement agreedbuilding conservation activities. Grantees will be expected to go through an application and vettingprocess in order to access these funds. Innovative uses of the Fund, and a flexible approach to its use,are expected to be encouraged in the design process. Two subsectors will be particularly targeted forwork with the Fund. Firstly, it is envisaged that stall owners witlinl the historic perimeter will beencouraged to access funds to improve social amenities, such as hygiene and sanitation. Secondly,small pensions are found throughout the historic zone in Asmara, and it is envisaged that the projectwill work closely with pension owners and operators, with financing from the Fund, to serve as enginesof growth by providing alternative and more diverse tourist accommodation of a high standard toservice the industry.

* strengthened capacity for small enterprises working in the building trades. The project will financethe establishment of a small workshop -- the Seranda workshop (named after the wooden shuttersfound on many buildings) -- with the objective of providing support and training for small-scaleenterprise development and training in the building trades (with a focus on wood craft), based inMassawa. It is envisaged that the workslop will work with older, and skilled craftsmen, as well aswith disabled former fighters, with the medium-term vision that they become owners of the enterpriseitself, while providing an imnportant service for the conservation and renovation of Eritrea's builtheritage. As a training and demonstration effort, the Seranda workshop will be engaged in the firstinstance in restoring the so-called Covered Walkway, an architectural feature around 17 meters wideand 100 m long, found in the center of Massawa.

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* selective conservafion for small enterprise development There is a growing awareness of the need toundertake a publicly-financed conservation effort, as a demonstration project, which shows how anarchitecturally significant building can be conserved and re-used. Government has also indicated itsinterest in seeing that such a project could be used to house enterprises which have otherwise limitedaccess to public or exhibition space. The project expects to finance the conservation and adaptivere-use of the Alfa Romeo building (which dates from the late 1930s) as exhibition and studio space forthe Asmara arts community. The Alfa Romeo center is expected to be a key facility for the training of anew generation of artisans and crafts people, housing 10 to 15 studios. The work of artists will becombined with public awareness programs which encourage cultural heritage conservation, and otherdevelopment priorities such as sanitation, child development, and health education. The facility will beused as a demonstration site for how some of Asmara's older buildings can be renovated and re-used ina sensitive, but architecturally consistent, manner.

Improving community and public services and assets

A key feature of the project has to do with how public spaces and public assets of significant cultural valuecan be revived to contribute to the life of the community. The project will pilot three sets of activities inthis regard, firstly having to do with the conservation of several of Asmara's theaters for their re-use by thecommunity, the conservation of a public facility to improve service delivery integrated with the restorationof a small adjacent piazza, and lastly working with the Eritrean Orthodox Church to strengthen culturalasset management at one of its monasteries.

* The many movie theaters of Asmara, built mostly at the height of Italian settlement in the 1930s,remain important cultural assets for the city. Several of these are recognized as architecturalmasterpieces. Although the lively cinema and theatrical community which fostered their construction isno longer central to their use, they continue to be heavily used by communities and zobas, for meetingsand cultural events. The project will finance preliminary planning and emergency conservationworks of two theaters -- Teatro Asmara and the Capitol Theater. The planning process supported bythe project would be used to identify possible financing for the eventual renovation. It is envisaged thatthe conservation plans for both theaters would focus heavily on how they can be more fully used by theSub-Zoba, both for cultural events and for public meetings. Conservation plans are expected toinclude provisions for continuing education, and for office space for community-based initiatives suchas conservation, self-help, or other income generating activities.

* Steps for the improved use of public spaces will be financed by the project. The project will financemodest conservation works of a public building -- the Central Post Office, which dates from 1916 --and will work to revive the community-based use and management of two of the city's many piazzasand parks, to bring about their more effective use for social and cultural events. Many of these publicopen spaces, piazzas, and special streets have become derelict because of a lack of communityparticipation in managing and maintaining them. In the absence of an appropriate mechanism for localmanagement, local authorities have built fences and padlocked open spaces, gardens, and piazzas, tokeep out those who misuse and vandalize them. The practice is not consistent with the originalintention that these be kept as open spaces for the use of the community. A community-basedapproach to the management of piazzas, which will be piloted by the project, would result in their moreeffective use for social and cultural events.

* The monastery of Debre Bizen was established around 1361 by Abuna Filipos, and is one of the mostimportant of its kind in Africa. It holds an extremely important collection of ecclesiastical

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manuscripts, some of which date to the 1400s, and possibly earlier. Its importance is rooted in the factthat it was one of the very few monasteries to have escaped the ravages of the Islamic invader, AhmedGragn, in the early 1500s. The project will provide support to the Debre Bizen monastery forbuilding an archive for its manuscripts and for opening a small museum at the site. A local committeeof concerned individuals, the Debre Bizen Committee, will be the primary mechanism for mobilizingand delivering this support from the project.

Training and capacity building

The project will finance training and capacity building to bring about greater inclusion of the poorest inbuilding conservation works. It intends to identify capacity for the building trades amongst lower incomegroups and to focus on improving this capacity. The Secretariat will develop guidelines for contractorsinvolved in building conservation which encourage pro-poor employment practices and intends to supportthe development of a broader pro-poor built heritage conservation planning and regulatory framework.

* The project will finance the development of a pilot training course on Building Preservation andConservation at the Asmara Technical School. The objective of the course would be to develop askilled cadre of knowledgeable craftspeople who can provide services in building preservation andconservation. Additional courses and workshops will provide basic training in building skills related toconservation for unskilled laborers, who are typically unemployed and from the poorest groups. It isenvisaged that participants will be associated with the three informal sector clusters of stalls inAsmara: Enda Ahmelti, Medeber, and Baranda. The objective is to develop a basic set of conservationbuilding skills among as many as 500 people in this group. The training course will be linked withemployment generation activities supported by the Contractors Association.

* Finally, the project is expected to improve the capacityfor conservation planning through a series ofpriority planning initiatives, focused on three particular tasks for Asmara: clarifying and formalizingthe boundaries of the historic perimeter of Asmara; improving the regulatory framework for builtheritage con3ervation, in a way which supports pro-poor urban development; the development ofspecial conservation areas, streets, and neighborhoods; pedestrian and bicycle zones; and smallenterprise development; preparation of selected conservation plans, supported by targeted mapping andcadastral surveys of portions of the historic perimeter. The project will finance specialized servicesand equipment to carry out these tasks, under the close supervision of the Steering Committee andSecretariat for Cultural Heritage. Depending on the outcome from the planning exercise in Asmara,the initiative may be extended to other small urban centers in Eritrea of architectural significance -- forexample, Massawa, Keren, or Decamhare.

Project Component 3 - US$ 0.50 million

Supportin! Livinit Culture

Background

There are nine indigenous languages natively spoken by Eritrea's nine ethnic communities, but there is littleinformation about the extent to which each of these languages is spoken, physical language boundaries, andthe distribution of dialects. The fact that population numbers are relatively small for some of theselanguage groups suggests that these languages are amongst the most threatened. Recent scholarship hasconfirmed the prevalence of an old and rich repertory of oral cultures across these language groups, whichincludes tales, poetry, songs, proverbs, and sung folkloric games. In relative terms, some languages appear

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to have been well-documented (Tigrinya and to a lesser extent Afar and Tigre). By contrast, there is littledocumentation of the oral traditions of the other six languages.

The desire of Eritreans to preserve their oral literature is not something novel, but rather one that has beendeeply imprinted in the minds and hearts of many since the time of the liberation struggle. Particularlysince independence in 1993, there has been a palpable and an increasingly deep awareness that thecollection, preservation, and development of the country's oral traditions, literature, and accounts of itsrecent history is just as important as other sectors are for the nation's development. Indeed, there is agrowing awareness of the need for urgent steps to prevent the loss of the country's oral traditions andliterature, with the view that if nothing is done now, many of these traditions will be lost entirely. One ofthe greatest threats to Eritrea's long-standing oral traditions is posed, paradoxically enough, by the spreadof literacy. As the print and electronic media provide a more widespread means for communicating, oraltraditions become less important, and are pushed further into the background by the cultural and socialmechanisms associated with the print and media cultures. The second major danger to Eritrea's oralliterature is related to the fact that many of the elders who have long preserved the folklore of the people arenow old, and when they die., they will take their stories and legends with dtem.

The matter of the country's written history must be separated from the question of its oral traditions.Indeed, largely with the exception of locally-derived oral traditions which have captured many aspects ofEritrea's past, the country's written history has always been written by outsiders. Relatively contemporaryhistorical accounts were first prepared by Italian scholars. Subsequent 'histories' developed out of theBritish Military Administration, then from the Ethiopian period. Eritrea's history always belonged tosomeone else. Rather than capturing what Eritreans did and wanted to happen on the one hand, mosthistories reflect instead what their rulers attempted to impose on them, on the other. Because of this,written accounts the Eritrean version of events have long been suppressed. Having said this, the weight ofinformation about Eritrea's history remains relatively accessible in recent memory and in extensive writingsabout oral history. Recapturing Eritrea's history must become a theme and priority of new historicalstudies.

Component activities

The objectives of the Living Culture component are to strengthen oral traditions, in particular poetry andstorytelling, by providing performance opportunities for oral poets and storytellers, by providing trainingand building capacity in field methods for the collection of oral literature, and by launching pilot fieldstudies to document and record threatened oral traditions; and to provide the resources to improve thecollection of oral histories and to strengthen the capacity for preparing an Eritrean historiography.

Reviving oral traditions andfolklore

The project is expected to finance capacity building, field studies, and perfonnance opportunities for thecollection and dissemination of oral traditions and folklore. Three phases are envisaged. A first phase,which focuses on documenting oral poetry from known senior aging griots and griottes of Eritrea, andpreserving it for future publication and dissemination in primary and secondary schools. The project willfinance performnance opportunities and workshops for these artists. The second phase will involvedocumenting the material which has been collected, and classifying it by genre. The third phase willinvolve cataloguing the material and making selective transcriptions of the text so that it can be madeavailable to a wider audience. An important aspect of this phase of the activity will be to ensure amechanism is found to begin to integrate the material collected into the educational curriculum.

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There are three features of this sub-component which bear particular mention. Firstly, Govemrnent intendsto build the capacity of the Cultural Affairs Bureau in the Ministry of Education for taking on this kind ofwork, especially focusing on UNESCO's recommendations regarding Safeguarding Traditional Cultureand Folklore. Recommendations adopted by the General Conference at lTNESCO's twenty-fifth session,November 15, 1989. Capacity will be strengthened by building skills through partnership arrangementsand by using specialists in the field. Secondly, the project will finance training material and field studies sothat staff can gain experience through practical exercises in collecting oral literature. Thirdly, the projectwill finance performance opportunities, either at festivals or workshops to encourage traditional oral poetsand storytellers to pass on their stories. Much of the riclness of the tradition comes from the performanceitself.

Building the capacity for oral history

The project will finance field studies and training in methods of collecting oral history. While the projectcomponent will be jointly implemented by the Ministry of Education's Cultural Affairs Bureau and thePFDJ's History Project, partnership arrangements will be developed with Asinara University's HistoryDepartment to enable staff and students to gain greater experience in collecting oral histories.

Project Component 4 - US$0.50 million

Documentation and Information Mana2ement

The Documentation and Information Management component seeks to provide support to enableGovernment eventually to establish an Eritrean Archival System to preserve the country's memory forpresent and future generations. The National Archives will play a central role in this system as a publicinstitution that preserves the historical records of the nation, establishes and operates a recordsmanagement system for the government, and coordinates a network of regional archives.

This component of the project will concentrate mainly on imnproving professional skills and theadministrative framework for archival and records management (policies and procedures for creating,using, disposing records and for collecting, organizing and mak-ing available archives) by financing trainingand capacity building for professional and non professional staff in the archives and ministries. Activitiesfocused in protecting the endangered historical heritage are also tak}en in account.

Background

Concern for the preservation of the written documents of past and present and the diffusion of its historyhas been a major preoccupation in Eritrea since the struggle for independence started. During the liberationstruggle, the responsibility for collecting publications and documents, preserving them and disseminatinginformation about the past and present Eritrea situation was the task of two bodies created by the EritreanPeoples Liberation Front (EPLF): the Research and Documentation Center (RDC) and the Research andInformation Center of Eritrea (RICE). The RDC was established in 1975, during the war, and was locatedin the liberated areas of Eritrea. It was part of the Department of Information of the EPLF. Since 1976, theRDC has being collecting documents from the different colonial periods, from the armed struggle and frommore recent events, such as from during the referendum for Eritrean independence.

Since 1991 RDC has acted de facto as the National Archives, covering the gaps in the archives situation byusing with maximum efficiency all resources available. Lack of formnal training has being palliated by

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extensive reading and visits abroad and by the impressive capacity of the staff to react to problems and tolearn from experience. The absence of a legal framework has not constrained the RDC from beingproactive and effective as an institution. Equipment and supplies have been provided by a variety ofdonors, and materials have been purchased locally when available. The RDC continues to carry out theduties of a national archives center: it collects public and private archives, conducts training courses forMinistry staff, is involved in the preservation of audio-visual records in the archives and in ministries,provides access to researchers to its holdings and is working to offer a central repository for semi-currentrecords in the ministries. RDC is also leading an initiative to protect manuscripts in the monasteries,churches and mosques.

Though the RDC has been functioning as a national archive for some years, its organization, structure, andfunctions have not been legally established. Archival legislation should establish by law the differencebetween public and private records, which of these are considered to be archival heritage, and how they areto be conserved. Legislation should also characterize the role and the administrative structure of anarchival system, of regional archives, and of the public records management system. Important progresshas already been made in preparing a legal framework for archival and records management as a result ofvarious technical studies and inputs.

Though the development of legislation and appropriate infrastructure must be a medium term priority forRDC as it moves through a transition to become a National Archives, several areas require urgentinvestment. Firstly, there are serious capacity constraints at the national and regional level in records andarchival management, and growing needs for skilled staff to handle the demands of records management atthe national level. Secondly, an extensive collection of photographic archives in the Ministry ofInformation, and audio-visual records in the RDC needs urgent conservation, and investment. The skillsand equipment to do so are lacking. Thirdly, the conservation and study of ecclesiastical manuscripts isbecoming an increasingly important concern because of the deterioration they are suffering throughimproper storage. There is also a keen interest in developing a better understanding of the extent ofEritrea's ecclesiastical records, and in making these available to a wider group of scholars and historians.Finally, there is at least one significant private archive in Eritrea which has urgently been seeking supportto improve its system of cataloguing. The Pavoni Center operates an extensive library as part of itstechnical training facilities in Asmara, and has one of the best collections of historic documents aboutEritrea, public or private. The collection is currently uncatalogued, and access to it depends on theknowledge of a single individual.

Component activities

The objectives of the Component are to strengthen skills in the area of Archives and records management,and to build the capacity for the eventual establishment of an Eritrean National Archives system. It isenvisaged that the project component will finance four sets of activities: capacity building in archival andrecords management; conservation of audio-visual and photographic records; ecclesiastical manuscriptpreservation; and private archives support.

Capacity building in archival and records management

The development of professional skills is keenly needed to strengthen the capacity for the establishment ofthe National Archives. There are several groups of people which require urgent training, with differentobjectives: professional staff in the RDC who have graduate level qualifications and direct experience, butno formal training in archives management; Ministry staff already involved in records management andarchival activities, but who have no formal training; and students from Asmara University without formal

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training in records management.

There are no local graduate training opportunities in archival and records management. The project willprovide resources for up to 6 course years of overseas training or equivalent. Staff receiving this trainingwill be expected to develop a local course of training to build archival skills within Eritrea. This trainingshould provide:

* a basic understanding of records management and general principles and practices of archival systems;* general knowledge of the Eritrean archival system;* sufficient background to be able to apply Eritrean Standards in the creation, use and disposition of

current records, under the supervision of a senior archival staff;* skills which enable staff to organize and describe archival fonds under the supervision of archival

senior staff;* knowledge of basic techniques of preservation of any kind of format and record reproduction;* an ability to information and monitor and manage activities in the archival reading room;* knowledge of the most appropriate storage techniques for different kinds of archival media and

formats.

Conserving audio-visual and photographic records

The RDC, the Ministry of Information and, to a lesser degree, other Eritrean Ministries, have accumulatedan important collection of video, audio and photographic records and documents. The audio collection datesto 1972 and contains 10,000 audiocassettes and 4,000 reel to reel recordings. The video collection consistsof 5,500 videocassettes and covers the period from 1974 until the present, and continues to add material toits collection from locally produced TV programs. To avoid deterioration of the materials due to improperhousing and technical obsolescence of the fornats, the RDC purchased equipment and supplies to transferold tapes to digital media. One fourth of the collection has been transferred, but the program has beenstopped because of a shortage of supplies and limited capacity to maintain the audio-visual equipment. Theproject will funance training in the maintenance of the digital conversion equipment, more general trainingwith regard to the preservation of audio-visual and photograph material, and the purchase of equipment andmaterial to continue transferring the collection to digital formats.

Ecclesiastical manuscript preservation

There are around 15,000 manuscripts dating from the 14th and 15th century located in monasteries,churches and mosques. These manuscripts, of religious contents, are written in Ge'ez (the earlyecclesiastical language) and some are illuminated and have a high artistic value. They also contain aannotations in old Tigrinya in the margins that are a basic source of information of everyday life (details ofcommunity disputes, customary law, registration of land ownership and individual local disputes). Apartfrom their high artistic value, these manuscripts are the main source of information for pre-modem Eritreahistory and are also the only existing source for the study of the early Tigrinyan language. The RDC ispresently preparing an inventory of manuscripts and religious artifacts. The inventory has focused on thefact that many manuscripts are poorly stored. Some monasteries keep them buried in caves, and fewfacilities have proper libraries or shelves for their preservation. They are not accessible to researchers andto scholarly community.

The project will finance storage units and shelving for a number of the most important monasteries andchurches which are leading repositories of maniuscripts. The objective of this activity is to ensure thepreservation of the manuscripts in the monasteries by providing safe storage areas and by teaching monks

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and churchmen basic preservation skills. On a pilot basis, manuscripts from a selected group ofmonasteries will be microfilmed and catalogued to make them more generally accessible to other scholars.Microfilms will be stored in the RDC premises and will be used as a security copy, in case of physicaldestruction of the original, and to provide access copies for researchers.

Private archives support

The Pavoni Center's library, an extensive private archive, is the result of the personal efforts of a singleperson, an Italian Catholic priest. The library comprises a collection of about 40,000 volumes plus someindefinite number of periodicals waiting to be bound, plus a collection of non-published materials andbooklets in specialized Eritrean, Ethiopian and African studies. The library is a remarkable source ofinformation for studies related to Eritrea and neighboring countries, and has special value for heritageresearch because it contains books on linguistics, architecture, archaeology, arts and crafts, local traditions,history and other subjects as well as many reference books, manuscripts catalogues, libraries and archivescatalogues, and dictionaries. The library is open to students and researchers. The books are organized bygeneral subject, but with little greater specificity. The library has no register or catalogue, and itsorganization is largely the responsibility of the librarian, who is familiar with the location of the mostimportant information. The project will finance modest hardware and software to enable the Pavoni centerto begin preparation of a catalogue of the most important resources in the library.

Project Component 5 - US$0.40 million

Coordination and Manazement

In addition, the project will provide finance for the costs of Coordination and Management, includingFinancial and Procurement Management, and Monitoring and Evaluation.

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Annex 3: Estimated Project CostsERITREA: Cultural Assets Rehabilitation Project

Prolec Cot- m oYg ~ Tt

1. Site Planning, Conservation and Museum Development 0.70 0.60 1.302. Conserving the Built Environment 1.30 0.80 2.103. Supporting Living Culture 0.10 0.40 0.504. Documentation and Infotmation Management 0.00 0.45 0.455. Coordination and Management 0.20 0.15 0.35

Total Baseline Cost 2.30 2.40 4.70Physical Contingencies 0.25 0.20 0.45

Prce Contingencies 0.15 0.10 0.25Total Project Costs 2.70 2.70 5.40

Total Financing Required 2.70 2.70 5.40

-~~~rjc -Cost By atgry «mihkn.U$ $mie VS $,iifCivil Works 110 0.50 1.60Goods and Equipment 0.05 0.70 0.75Consulting Services and Training 0.45 1.10 1.55Grants 0.50 0.10 0.60Operating Costs 0.60 0.30 0.90

Total Project Costs 2.70 2.70 5.40

Total Financing Required 2.70 2.70 5.40

Identifiable taxes and duties are 0 (USSm) and the total project cost, net of taxes, is 5.4 (USSm). Therefore, the project cost sharing ratio is 92.590/% of totalproject cost net of taxes.

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Annex 4: Cost Effectiveness Analysis SummaryERITREA: Cultural Assets Rehabilitation Project

In the context considered here, 'cultural heritage' includes both the material aspects of culture (forexample, historic sites and buildings, landscapes, and objects of particular historical, architectural,aesthetic, or cultural significance) as well as non-material aspects such as social practices, symbolic formsof expressions (for example, the arts, music, dance, oral traditions, literature, etc.), values and beliefs.

Summary of benefits and costs:

In light of the pilot nature of this project, only notional and qualitative economic analyses will beundertaken a priori. The project is expected to generate a range of benefits associated with: a) experiencegained with various institutional partnership arrangements for cultural heritage conservation; b) improvedplanning and site interpretation to accommodate conservation needs and tourism interests in cultural sites;c) growth and poverty reduction associated with the development of enterprises to support built heritageconservation; d) conservation of cultural assets which might otherwise have been lost, for example, to theftor as a result of development, e) community involvement in cultural site conservation and management, f)improved management of public records; and g) improved institutional capacity to formulate andimplement cultural asset management programs.

Main Assumptions:

Cost-effectiveness was carefully considered during project design. As pilot operations, interventions underail components are expected to be relatively small-scale and will seek to optimize the impacts of resourceuse by developing partnership arrangements with domestic and international organizations such as MraraArt Association, Mahber Fikri Sine-Tibeb, ICCROM, and UNESCO. Site conservation activities areexpected to use local building materials and labor intensive methods. There is a very strong element ofcapacity building in the project design, which is intended to contribute to longer-term sustainability.

Cost-effectiveness indicators:

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Annex 5: Financial SummaryERITREA Cultural Assets Rehabilitation Project

Years EndingJune 30

I Year I Year 2 I Year 3 Year 4 I Year 5 i Year 6 I Year 7Total Financing RequiredProject CostsInvestment Costs 1.8 1.8 1.4Recurrent Costs 0.1 0.1 0.2

Total Project Costs 1.9 1.9 1.6 0.0 0.0 0.0 0.0Total Financing 1.9 1.9 1.6 0.0 0.0 0.0 0.0

FinancingIBRDIIDA 1.7 1.8 1.5Government 0.1 0.1 0.1

Central 0.0 0.0 0.0Provincial 0.0 0.0 0.0

Co-financiers 0.0 0.0 0.0Other sources 0.1 0.0 0.0

(Unidentified)Others 0.0 0.0 0.0Others 0o0 0.0 0.0Others 0.0 0.0 0.0Others 0.0 0.0 0.0Others 0.0 0.0 0.0

Total Project Financing 1.9 1.9 1.6 0.0 0.0 0.0 0.0Main assumptions:

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Annex 6: Procurement and Disbursement ArrangementsERITREA. Cultural Assets Rehabilitation Project

Procurement

Procurement financed under the project will be limited to recruitment of consultants services, officeequipment, a limited number of vehicles, some civil works, grant-financed community-based activities, andoperating costs. An experienced Procurement Specialist in the Secretariat for the Steering Committee onCultural Heritage will be responsible for ensuring that procurement for works and goods is canied out inaccordance with the Bank's Guidelines for Procurement under IBRD Loans andlDA Credits (datedJanuary 1995 and revised in January and August 1996, in September 1997, and January 1999).Consultancy services financed by IDA will be procured in accordance with the Bank Guidelines for theSelection and Employment of Consultants by World Bank Borrowers (dated January 1997, and revisedSeptember 1997 and January 1999).

A General Procurement Notice will be published in United Nations Development Business (UNDB) andwill include a description of required services or goods, the client agency, and the budgeted cost. Thisnotice will be updated every year during the execution of the projects until all contracts and assignmentshave been procured. In the case of contracts which are expected to cost more than $200,000 equivalent,Specific Procurement Notices will be issued seeking expressions of interest through the national press.

To the extent possible, procurement arrangements have been designed to respond to the need for flexibleuse of procurement methods, given the institutional capacity of the implementing agencies. A detailedProcurement Plan, based on the inputs identified in Project Implementation Plan will be prepared within 6months after Credit effectiveness, and this will be revised annually during preparation of the Annual WorkProgram and Budget. Whenever possible, procurement items will be consolidated into appropriately-scaledcontracting packages.

To complement a LACI compatible financial management system, the Secretariat will also implement aprocurement management and monitoring system. This will be required to: (i) estimate cash forecasts forwithdrawals under the LACI system, and to (ii) monitor physical progress of outputs against contractscommitted.

Procurement Evaluation Committee

Most procurement of goods, works, and services will be carried out by the Secretariat. Participatingagencies will be able to procure a limited number of small items (i.e. incremental operating expendituressuch as fuel, office supplies, DSA, etc.) to facilitate the timely execution of tasks. Procurement by eachimplementing agency is not expected to exceed US$30,000 annually.

A Procurement Evaluation Committee (PEC) will be constituted by the Steering Committee to support theimplementation of the Cultural Assets Rehabilitation Project. Its primary function will be to evaluatetender documents for all goods, works, and services to be financed by the Project, and on the basis of theseevaluations, provide recommendations for contract awards. The Committee consists of:

Chainnan of the Secretariat, Project CoordinatorProcurement Specialist, Secretariat (Member & Secretary)Finance/Accountant, Secretariat (Member)Other members to be assigned on an ad hoc basis

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The presence of all PEC members will be required for all bid evaluations.

Goods and equipment

Contracts for the procurement of goods (e.g. vehicles, computers and other office equipment not availablelocally) would be packaged into larger contracts wherever possible. Goods with an estimated value of morethan US$150,000 per contract will be procured through International Competitive Bidding, using the Bank's Standard Bidding Documents (SBD). Goods, equipment, and furniture available locally with anestimated value of more than US$50,000 per contract but less than US$150,000 per contract, up to anaggregate amount of about US$200,000 equivalent will be procured following National CompetitiveBidding (NCB) procedures. Individual units of office equipment (individual fax machines, printers, laptopcomputers and vehicles) may be purchased through the Inter-Agency Procurement Services Office (IAPSO)of the United Nations, with an aggregate value not to exceed US$200,000. National and InternationalShopping procedures, based on comparing price quotations from at least three suppliers in response towritten invitation, may be used for items available off-the-shelf for individual contracts of US$50,000equivalent or less, up to an aggregate amount of about US$500,000. All ICB contracts will be subject toBank prior review. In addition, the first three contracts procured under NCB will be subject to priorreview by the Bank.

Civil works

Civil works to be carried out under this project are expected to consist of small contracts mostly underUS$100,000 and therefore no procurement under ICB procedures is envisaged. Individual contracts forcivil works under US$75,000, up to an aggregate amount of US$400,000 will be procured throughquotations with the use of lump sum contract procedures, and on the basis of three quotations fromqualified contractors. It is envisaged that contracts for larger site conservation for which extensivespecialist skills are not required, and which cost more than US$75,000 but less than US$250,000 percontract will be procured under National Competitive Bidding (NCB). Smaller works executed under thedirect supervision of staff from the Implementing Agencies and costing less than US$30,000 per contract,up to an aggregate amount of US$200,000 may be procured through the use of simple selection methodsbased on specific expertise required for the tasks, with payments made on the basis of performance ofmeasurable outputs, particularly where experienced specialist craftsmen and builders who have typicallybeen employed in the past are needed.

Consulting services and training

Consultancy services for all components of the project, including studies, technical assistance, supervisionof works, and training, requiring the recruitment of consulting finns or individual consultants will beprocured in accordance with the Bank's Guidelinesfor the Selection and Employment of Consultants byWorld Bank Borrowers.

Individual consultants contracts and consulting firms contracts below the threshold of US$50,000 andUSS100,000 respectively may be awarded on the basis of qualifications and experience in accordance withBank guidelines. For these contracts, prior review will be required of all TORs, proposed budgets,contracts, and consultant qualifications. Prior review will also be required of all single-source consultancyor training contracts, regardless of their value. Contracts for individual consultants below US$50,000, andfor consulting fuims below US$ 100,000, will be subject to post-review. Technical evaluation reports for

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contracts exceeding US$100,000 will require IDA's no-objection.

With regard to workshops, training, and study tours, prior review of arrangements related to participationin workshops and training, including proposed budget, agenda, participants, location of training, and otherrelevant details, will be required.

For most activities, however, prior review will be limited to ICB and to contracts above the thresholdsstated above. IDA may request prior review of bid documents, evaluation methods and contracts for whichthey require more detailed information. Similarly, any request for no objection from Secretariat will beformally replied by IDA.

Post review

Under the project, the procurement actions not subject to prior review as described above, above will besubject to post-review. This to allow for fast disbursement of funds while assuring transparency andconsistency with these procedures. All documentation used for the procedures of contracting, recruitmentof consulting services, evaluation and award shall be retained by the Secretaniat for gubgequentexamination by independent auditors and IDA supervision missions. The number, timing and pattern ofsupervision missions will be determined at the start of the implementation program.

Procurement methods (Table A)

Table A: Procurement Costs by Procurement Arrangements

Procurement Arrangements (USS million)Procurement National Local and Small Works/ From UN Consulting Non- Bank TotalRequirements Competitive Intemational Community Agencies Services Financed

Bidding Shopping GrantsA. Civil Works 1.0 - 0.5 - 0.1 1.6

(0.9) (0.4) (0.1) (1.4)B. Goods and 0.5 0.2 - - 0.7Equipment (0.5) (0.2) (0.7)C. Consulting 1.4 0.1 1.5Services, Training, (1.4) (0.0) (1.4)Audits D. Grants _ - 0.7 - 0.7

(0.7) (0.7)E. Operating Costs - 0.8 - - 0.1 0.9

(0 (0.7) (__ 1) (0.8)Total 1.0 1.3 1.2 0.2 1.4 0.3 5.4

(0.9) (1.2) (1.1) (0.2) (1.4) (0.2) (5.0)

Note: figure in parentheses are the respective amounts financed by IDA.

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Prior review thresholds (Table B)Table B. Thresholds for Procurement Methods and Prior Review

Contracts subjectExpenditure Category Contract value Procurement method to prior reviewA. Civil Works /a < $75,000 Quotations (up to an aggregate value of first three

$400,000), awarded on the basis of contractsquotations obtained from three qualifiednational contractors

> $75,000 but < NCB first three$150,000 contracts

B. Goods and < $50,000 Shopping, for an aggregate not to noneEquipment exceed $500,000

> $50,000 but < NCB, for an aggregate not to exceed first three$150,000 $200,000 contracts subject

to prior review> $150,000 ICB AllIndividual units of IAPSO. Individual contracts not to noneoffice equipment, exceed $30,000 for an aggregate not tofumiture, vehicles exceed $200,000.

C. Consulting Services, > $50,000 for Individual Qualifications AllTraining, Audits individuals

> $100,000 for firms; QCBS All< $50,000 for Qualifications. Sole sourcing may be TORs, budget,individuals or < allowed subject to clauses 3.8 to 3.11 of qualifications,$100,000 for firms; the Guidelines. contractWorkshops, training, Acceptable national practice Allstudy tours

D. Grants < $30,000 Small-works or community contracts NoneE. Operating Costs All operating costs Acceptable national commercial None

and field expenses practice.______________________ Project support staff Individual Qualifications. All

a/ For individual small works contracts valued less than $75,000, up to an aggregate amount of S 400,000 fixed pricecontracts may be awarded on the basis of quotations obtained from three qualified national contractors. Civil workscontracts over $75,000 but under $ 150,000 will be procured following NCB procedures.NCB -- National Competitive BiddingIAPSO -- Interagency Procurement Services Organization of the UNQCBS -- Quality and Cost-Based MethodICB - Intemational Competitive Bidding

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Disbursement

Allocafion of credit proceeds (Table C)All disbursements will be handled in a manner which is consistent with the World Bank's DisbursementHandbook, and as described in the Development Credit Agreement. Funds will be disbursed over 3 yearperiod, planned to begin in August 2001. The Completion Date will be July 31, 2004 and the Closing Datewill be January 31, 2005. All applications to withdraw proceeds from the Credit will be fully documented,except for expenditures for operating costs and for contracts with a value of $50,000 or less for goods andequipment, $75,000 or less for civil works, $20,000 or less for grants, and for consultant services underUS$100,000 for firms and US$50,000 for individuals for which reimbursements may be made againstStatements of Expenditure (SOEs). Supporting documentation will be retained by the Secretariat and willbe available for inspection and review as requested by IDA Supervision Missions and by project auditors.

A review of accounting and financial management systems concluded that, while the Secretariat's financialmanagement system is basically sound, it is currently not capable of complying with Loan AdministrationChange Initiative (LACI) Guidelines. The following steps will need to be carried out before the Secretariatis able to meet LACI requirements:

* development of a Chart of Accounts, appropriate for the project;* development of a LACI compatible financial reporting format acceptable to the Bank;

Provided these steps are taken, it is envisaged that the Secretariat should be LACI capable within 18months from the date of effectiveness. Once the Secretariat is assessed to be LACI capable, the CreditAgreement will be amended to reflect that disbursements are to take place on the basis of ProjectManagement Reports thereafter. In this event, it envisaged that the project will adopt streamlineddisbursement procedures once LACI Guidelines have been met. The decision to adopt streamlineddisbursement procedures will be made in consultation with a Bank Financial Management Specialist whoWill:

* review experience to date with the quality of withdrawal submissions, operation of the SpecialAccount. SOE submissions and documentation retention in the field, and the general effectiveness ofproject management and accounting staff;

* ensure that the Special Account has been reconciled and any outstanding issues resolved;* review supervision reports to assess implementation progress and issues;* review any available audit information, as well as any other financial reports, with a view to forming

an opinion on the reliability of project accounts.

Once the Secretariat is assessed to be LACI capable, the Credit Agreement will be amended to reflect thatdisbursements are to take place on the basis of Project Management Reports thereafter.

It is envisaged that one Special Account, acceptable to IDA, will be established. The authorized allocationof this accounts will be US$500,000. Requests for replenishment of the Special Account should besubmitted to IDA every month under normal circumstances, but in any event, not less frequently than onceevery three months.

Five disbursement categories are envisaged: civil works, goods and equipment, consulting services andtraining, grants, and operating costs.

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Table C: Allocation of Credit Proceeds

On' ixpnditur Categoy iAmount inUS$million , inanctng .1. Civil Works 1.30 90 %2. Goods and Equipment 0.60 100 % of foreign costs

90 % of local costs3. Consulting Services, Training, Audits 1.20 100 %4. Grants 0.80 100 %5. Operating Costs 0.60 90 %Unallocated 0.50

Total Project Costs 5.00

Total 5.00Note: Operating costs are defined to include building, equipment, and vehicle maintenance costs; fuel, smallpurchases of office supplies, building rental charges. utilities, internet access, telephone charges, stafftravel and subsistence expenses not elsewhere provided, and project support staff (but excluding civilservants' salaries.)

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Annex 7: Project Processing ScheduleERITREA: Cultural Assets Rehabilitation Project

ProJect Schedule . ..... Act-atTime taken to prepare the project (months) 6First Bank mission (identification) 01/24/2000Appraisal mission departure 11/07/2000Negotiations 05/15/2001Planned Date of Effectiveness 08101/2001

Prepared by:

Steering Committee on Cultural Heritage under the auspices of the Ministry of Finance, State of Eritrea.The Steering Committee on Cultural Heritage is comprised of:

Naigzy Gebremehdin, Chairman, Steering Committee on Cultural Heritage;Eritros Abraham, Office of the President;Yohannes Tecle Haimanot, Municipality of Asmara;Alemseged Tesfai, Oral History Project (PFDJ);Zemhret Yohannes, PFDJ;Azeib Tewelde, Research and Documentation Center;Solomon Tsehaye, Cultural Affairs Bureau, Ministry of Education;Yosef Libsikel, National Museums of Eritrea;Kidane Solomon, Ministry of Tourism;Daniel Tesfalidet, Ministry of Finance (ex officio);Kesete Abraha, Steering Committee on Cultural Heritage, Secretariat (ex officio)

Preparation assistance:

International Council on ArchivesICCROM (International Center for the Study of the Preservation and Restoration of Cultural Property)

Bank staff who worked on the project included:

;NqgblqrName SpeclityPeter Dewees Team LeaderNaima Hasci Social Scientist and Cultural Heritage SpecialistArlene Fleming Peer reviewerKreszentia Duer Peer reviewerIraj Talai Financial Management SpecialistBrighton Musungwa Financial Management SpecialistFrancesco Sarno Procurement Specialist

-48 -

Additional assistance in preparing the project was provided by:

Joseph King, Site Conservation Specialist, ICCROM (consultant to the Bank)Montserrat Canela Garayoa, Archival Specialist, International Council on Archives (consultant to the

Bank)Brevio Peppo, Architect (consultant to the Steering Committee on Cultural Heritage)Dawit Debessay, Architect (consultant to the Steering Committee on Cultural Heritage)Zahra Mekki, Architect (consultant to the Steering Committee on Cultural Heritage)Prof. Ezra Gebremehdin, Ecclesiastical Manuscripts Specialist, Department of Theology, Uppsala

University (consultant to the Steering Committee on Cultural Heritage)Prof. Paolo Marrasini, Ecclesiastical Manuscripts Specialist, Universita degli Studi di Firenze, Italy,

(consultant to the Steering Committee on Cultural Heritage)Dr. Ghirmai Negash, Oral traditions specialist, Leiden University, (consultant to the Steering

Committee on Cultural Heritage)

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Annex 8: Documents in the Project File*ERITREA: Cultural Assets Rehabilitation Project

A. Project Implementation Plan

Eritrea Cultural Assets Rehabilitation Project, Project Implementation PlanWorking Paper 1: Site Planning and ConservationWorking Paper 2: Conserving the Built EnvironmentWorking Paper 3: Supporting Living CulturesWorking Paper 4: Documentation and Information Management

B. Bank Staff Assessments

Eritrea Cultural Assets Rehabilitation Project Procurement Assessment (LACI), Francesco Sarno (April15, 2000)Eritrea Cultural Assets Rehabilitation Project, Financial Management Capacitv Assessment, BrightonMusungwa (February 12, 2001)

C. Other

Peer Reviewers Comments on the PID and LogframeArlene Fleming, 2/26/2000Kreszentia Duer, 2/28/2000

Peer Reviewers Comments on the PADArlene Fleming, 11/02/2000Kreszentia Duer, 11/02/2000

*Including electronic files

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Annex 9: Statement of Loans and Credits

ERITREA: Cultural Assets Rehabilitation ProjectMay-2001

Difference between expertedand actual

Orginal Amount in US$ Millions disbursements'Project ID FY Purpose IBRD IDA Cancel, Undisb. Ong Frm Rev'd

P068463 2001 INTEGRATED EARLYCHILOHOOD PROJECT 0.00 40.00 0.00 35.41 0.90 0.00P065713 2001 HNVIAIDS, MALARIA, STDS& TS CONTROL 0.00 40.00 000 39.09 0.22 0.00P044674 2001 EMERGENCY RECONSTRUCTION 0.00 90.00 0.00 49.31 -3.05 0.00P034154 1998 PORTS 0.00 30.30 0.00 15.01 12.42 0.00P050354 1998 HUMAN RES.DEV 0.00 53.00 0.00 21.83 0.98 0.00P043124 1998 HEALTH PROJECT 0.00 18.30 0.00 11.70 9.71 0.54P044651 1997 ROAD ENGR. CREDIT 0.00 6.30 0.00 0.23 0.52 0.00P039264 1996 COMMUNITY DEVELOPMENT FUND 0.00 17.50 0.00 0.41 1.56 0.00

Total: 0.00 295.40 0.00 172.98 23.25 0.54

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ERITREASTATEMENT OF IFC's

Held and Disbursed PortfolioMay-2001

In Millions US Dollars

Committed DisbursedIFC IFC

FY Approval Company Loan Equity Quasi Partic Loan Equity Quasi Partic1997 SEF Tesinma 0.73 0.21 0.00 0.00 0.40 0.21 0.00 0.00

Total Portfolio: 0.73 0.21 0.00 0.00 0.40 0.21 0.00 0.00

Approvals Pending Commitment

FY Approval Company Loan Equity Quasi Panic

Total Pending Commitment: 0.00 0.00 0.00 0.00

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Annex 10: Country at a Glance

ERITREA Cultural Assets Rehabilitation ProjectSub.

POVERTY and SOCIAL Saharan Low-Eritma Africa income Development diamond

1"99Population. mid-vear (millions) 4.0 842 2 417 Life expectancyGNP ner capita (Atlas method. USSI 200 500 410GNP (Atlas method. USS billions) 0.79 321 988

Averaoe annual arowth. 1993-99

Pooulation fX) 2.7 2 6 1 9Labor force(%l 2.7 2.6 2.3 GNP Gross

per primaryMost recent estimate llatest yer available. 1993-991 c)pit

Povertv f% of ooulation below national oovertv line)Urban coculation (% of iotafoouletion) 18 34 31Life eoectancyv at birth (vesrs) 51 50 60Infant mortalitv trow 1.000 live births) 81 92 77Child malnutrition f% of children under 5) 44 32 43 Access to safe vater

Access to imoroved water source (% of ooulationl 7 43 64illiteracy (% of ooulatbon aoe 15+) 47 39 39Gross orimarv enrollment (% of school-ase oooulation) 53 78 98 _EriMsa - Low-incomn group

Male 59 8S 102Female 48 71 86

KEY ECONOMIC RATIOS and LONG-TERM TRENDS

1979 11989 199t 1999EconomIc ratloe

GDP (USS billions) .. 0.68 0.67Gross domestic investment/GDP 47.2 44.6 TradeExDorts of oods and services/GDP 18 0 14.9Gross domestic savinas/GDP -24.5 -20.1Gross natonal savinoslGDP 12.2 14.0

Current account balance/GDP .35.0 -32.6 DomesticInterest oavmentslGDP 05 03 Savings rInvestment

Total debt/GDP 20.8 33.5Total debt servicelexDorts 1 5 1 4Present value of debtGODPPresent value of debt/exoorts ..

Indebtedness1979-89 1989-99 1998 1999 1999-03

(averae annual orowth)GDP 5.2 3.9 3.0 61 tEriles Low-inome groupGNP oer caoita 1.8 -5.8 -1.0 3.5Exoorts of ooods and services -1 6 -46.6 -4.0 16.9

STRUCTURE of the ECONOMY

1979 1989 1998 1999 Growth of investment end GDP (%)(% of GDP)Aoriculture 6 .9 16.1 16.0Industrv 33.6 274 27.3 10

Manufacturino 30.0 14.1 139Services 49.5 56.5 58. 6 o _ _

Private consumotion 75 5 7215 -s is 5 ST t I

General oovernment consumotion 49.0 47.6 GDI _GDPImoorts of aoods and services 87.6 79.5

1979-89 1989-99 1998 1999 Growth of exports and Inports (Y)(av raoe annual arowth)Aoriculture oI ndustrv ro

Manufacturino 40

Services e

Private consumoton 20 4 1 t C

General oovernment consumotion 40Gross domestic investment 40Imoorts of ooods and services 124 1.5 -10.0 Epat ImportsGross national oroduct 486 -3.2 1.9

Note: 1999 data are preliminary estimates. GOP components are estimated at factor cost.

The diamonds show four kev indicators in the countrv fin bold) comoared with its income-orouD averaoe, It data are missino. the diamond %vill

be incomolete

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Eritrea

PRICES and GOVERNMENT FINANCE1979 1989 1998 1999 Inflation

Domestic pneces(A5 change) 40Consunmer prices 16.6 8.3 3:ImpicdtGDP deflator 27 126 2

Govemment ffnance la(56 of GDP inctudes current grants) aCurrent revenue 34.8 29 2 94 95 96 97 99 "ICurrent budget balance -11.6 -1 62 GDP defletor

0CPI

Overall surplus/deficit -41 4 -50.2

TRADE

(US$ m,lins) 1979 1989 I 1999 Export and import levels (USS mill.)

Total exports (fob) 28 26 so0

n.a.

Manufactures 7 400Total imports (af) 527 507

Food -75 200Fuel and energy 6Capital goods 139 o

Esoort orice index (1995=100) 93 94 95 X S 98Imnoort orice index (19950=100) *r Exports * importsTerms af trade (1995=100)

:-ALANCE of PAYMENTS

(USS mrtlons) 1979 1989 1998 1999 Current account balance to GDP(%)

Exports of goods and services 109 100 20Imports of goods and services 597 562 I:Resource balance -488 -4d2

Net income 4 3 o Net current transfers 246 240 10

Current acoount balance -238 -219 20

Financing tems (net) 73 227 U0Changes in net reserves 165 -8

memo:Reserves incdudina oold (USS millions) 145 122CnrnvmPinn rat. (DOEC loca)AJSS) 7.4 B 7

EXTERNAL DEBT and RESOURCE FLOWS1979 1989 1998 1999

(USS midlions) Composition of 1999 debt (USS milL)Total debt outstanding and disbursed 142 225

IBRD 0 ° G0 I

IDA 37 56

Total debt service 4 3IBRD 0 0IDA 0 0

Composition of net resource flows E 100Official grants 74Offiaal creditors 65 69Private creditors 0 0Foreign direct investment 0Portfolio equity 0 4

World Bank programCommitments 53 0 A- IBRD E - BialerIDisbursements 6 16 8- IDA D- Other multilateral F- PrivatePrincipal repayments 0 0 IMF n-st-m Net flovs 6 16Interest payments 0 0Net transfers 6 16

Development Economics 8/21/00

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