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Towards an Effective Partnership:Development aid to the NBC surrounding areas
Sateh Chafic El-Arnaout, PhDChief Technical Advisor
Director of NBC Recovery and Reconstruction CellPresidency of the Council of Ministers
Presidency of the Council of Ministers Recovery and Reconstruction Cell
Development of NBC Surrounding Areas
Key pillar of both: o government strategy at the
Vienna donor conference;o government policy of
addressing under-served areas in Lebanon
An influence area of 25 municipalities around the NBC was identified based on:
o impact of conflict;o economic linkages;o road network;o topography
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Geographic EndowmentTrade Corridor: Located on current land and maritime and
future rail trade corridors to Iraq and Gulf countries
Energy Corridor: Located along land fuel supply line to the
future Beddawi oil refinery
Located along the future land gas supply line to the Deir Ammar power plant
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Economic Endowment
1- Public Investments2- Domestic Direct Investments3- Labor4- Tripoli service sector5- Foreign Direct Investments
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Tripoli
North Lebanon
Syria, Iraq & Arab Gulf
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Beirut
Local economy that depends on commerce, agriculture and fishing
Important source of labor to regional economy in Tripoli and North Lebanon
Economic and Social Vulnerability
Economic :
Area heavily penalized due to direct and indirect losses from three major events: (i) closure of Syrian border and major access road during July 2006 war, (ii) 2007 NBC conflict and; (iii) 2008 conflicts in Tripoli
Area generates modest economic activities (lowest ratio of loans to and lowest per capita consumption in Lebanon)
Social: High poverty rate (38%) as well as high
illiteracy & school drop-out rates
Highest inter-governorate inequality in Lebanon (gap between rich and poor) & 2.3% of children are underweight
Poor quality of social spending (teaching quality and absence of vocational training)
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Growth PillarsKnowledge Economy:
o Expected to benefit from proximity to higher education services (Lebanese University)
o Benefits from proximity to medical services in Tripoli
Traditional Services:o Commerceo Agricultureo Fishing
Manufacturing:o Expected to better integrate in
the regional economy and to benefit from Tripoli’s special economic zone
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Tripoli Special Economic Zone
Agriculture
Tripoli’s Special Economic ZoneLaw enacted on September 5, 2008
Fiscal and Tax Incentives for companies registered within TSEZ:
Custom duty and VAT waived for goods destined to companies registered within TSEZ.
Income tax waived for companies registered within TSEZ.
Construction permit fee and property tax waived for companies registered within TSEZ.
Tax waiver for equity and bonds issued by companies registered within TSEZ.
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Going Forward
Projects to be aligned with the National Land Use Masterplan to be approved in December 2008
Projects to complement thearea’s Public Investment Program to be approved mid-January 2009
Projects to be sustainable and to have limited O&M fiscal burden on beneficiaries
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NBC SURROUNDING MUNICIPALITIES
MUNICIPALITIES
SECTOR MINISTRIES
AFESD ESFD
CDR
KUWAIT FUND
GERMANYKFWGOV.
IMPLEMENTATION
NGOs
DIRECT FUNDS
INDIRECT FUNDS
ITALYUN
GROUP
ECHO
USAID
CHF RI
IBRD
MDTF
MOI
LRF
DIRECT IMPLEMENTATION
Implementation Issues
• Sub-sector overlap:o Local Economic Developmento Municipal Capacity Buildingo Microfinanceo Etc.
Varied methodological approaches
Absorptive capacity of municipalities & recipient’s fatigue
Sustainability of projects and fiscal burden on beneficiaries
Abortive efforts by donors in project preparation
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Role of Recovery and Reconstruction Cell
Coordinates with Municipalities, Sector Ministries and CDR to identify demand
Coordinates on a regular basis with Gate Keepers” and provides quarterly updates on development aid on a GIS platform
Facilitates project cycle implementation by donors (Identification - Design & Implementation)
Work closely with CDR and MoF to gradually hand-over monitoring mandate
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Mapping of development projects
Data analysis will report at the following levels:
Donor Sector Beneficiary population (Lebanese vs. Palestinian) Municipality Financial Implementation progress Major implementation constrains Lessons learned Impact
Mapping of development projectsGeneral Information Commitments, disbursements and expenditures
Access serial number Donor Commitment % Date
Project title
Description 1st level implementer Disbursement Date Balance
Program Agreement
Project Funding 1st level implementer expenditure Date Balance
Funds Originated from Pre-Vienna, Vienna, Post Vienna Distribution of Funds by Type & Category
Window of funding MDTF, GoL budget support, UNRWA budget support, DDI
Type of assistance Amount %
Project Duration Recovery
Reconstruction
Planned
(start date, end date)
Actual
(start date, end date) Type of Funding Amount %
Implementation Status In cash
Progress In kind
Donors, Implementing agencies Contractors
Donor Category of Funding Amount %
1st level implementer Works
2nd level implementer Goods
Contractor Technical Assistance
Financial Information
Project Cost Total (US$) Distribution of Funds across Sectors and Municipalities
Y1 Sector/Municipality %
Y2 Distribution across sectors
Distribution across municipalities