Project Background
After his ascension to power, the new Bolivia president Evo Morales aimed at addressing the most dominant social problems in the country which were primarily based on poverty. To address the issues, the government targeted to invest in urban areas where there was a rising number of urbanizations, increasing poverty levels, transport congestion, limitations in public service access, and increased natural disasters exposure. The government initiated its operations in there Bolivia’s city that carried the most population, which are, Santa Cruz, La Paz, and El Alto.
The three cities were selected for different social problems and hence required unique interventions. To begin with, La Paz needed integrated interventions to upgrade its urban standards. The city had poor infrastructure and steep gradients which put the people at risk since Bolivia is an earthquake prone country. During the appraisal, 38 percent of the population in La Paz were classified as poor using the Unmet Basic Needs index (Trohanis, 2016, p. 3). In addition, 32 percent of the population lived in highly hazardous environments such as in hills with more than 45 degrees (Trohanis, 2016, p. 3). The areas were highly filtrated due to poor drainage which occasionally caused mudslides resulting to loss of life and property.
Consequently, El Alto which neighbors La Paz has a high rate of urbanization and poor policies on land management causing high and uncontrolled growth. There was increased pressure on the transport system due to high number of vehicles and poorly planned road network (Trohanis, 2016, p. 3). There was poor connectivity between amenities such as the airport to other regions.
The third city that the government targeted in their focus on poverty reduction was Santa Cruz. The people in the city suffered from lack of adequate water and poor sanitation. At the appraisal period, the city had an average of 1.3 million population and was growing at a 6 percent rate (Trohanis, 2016, p. 5). Ten cooperatives provide sanitation services in Santa Cruz with Santa Cruz Water Utility Cooperative (SAGUAPAC) serving the highest part, 65%. About 32% of the city’s sewerage was not serviced resulting in environmental and health effects (Trohanis, 2016, p. 6). Moreover, Santa Cruz’s primary aquifer was exposed to permanent damage from the leakage.
Objectives of the Project
This project was guided by three key objectives which facilitated all its operations in Bolivia. For instance, this project aimed at enhancing the achievement of sustainable improvements focusing on the urban infrastructure together with the living standards for the poorest neighborhoods across La Paz. This would be accomplished through significant upgrading on the urban areas and neighborhoods which would be achieved by participation in the project participation processes (Trohanis, 2016, p. 9). Further, this project would enhance the mobility of citizens in El Altro city by the removal of infrastructure bottlenecks. In addition, this project would ensure the introduction of new measures to modernize the public transport services together with the transport management in the urban areas (Trohanis, 2016, p. 10). Finally, another objective of this project was to effectively expand the sewerage coverage especially in poor areas across Santa Cruz.
Importance of the Project to the Government
Without a doubt, this project would play a significant role for the Bolivian government. Prior to the project, the Bolivian cities (Castelli et al., 2017, p. 437) were facing increased challenges which threatened the sustainability of the country’s citizens. For instance, Bolivia faced high social problems which were characterized by urban poverty, poor access to services and congestion. However, this project would enhance the improvements of the cities conditions thus promoting the well-being of citizens. On the other hand, this project would facilitate the countries growth through developing its overall infrastructure especially on roads and transport services. The Bolivian transport sector was characterized by inadequate infrastructure and poor enforcement of transport laws. Bolivia was prone to many hazards which were associated by poor infrastructure and increased social problems (Trohanis, 2016, p. 6). Hence, with this project’s main aim being to improve the infrastructure and social problems, it would develop ample measures to address future hazards in the country.
Social Environment of Project Conception
During the conception of this project, significant studies were carried out across different social aspects during appraisal. For example, studies focused on social aspects such as housing, language spoken, access to water, education, migration and health among other key services across the three cities (Trohanis, 2016, p. 5). This would be achieved through expanding sewerage coverage in the three cities by increasing wastewater collection services and waste water treatment. This project aimed at improving the sanitation of all citizens living in the urban areas which would enhance access to sewerage services. A key indicator of this project’s outcome would be to reduce ground water contamination in the cities which would protect the health and well-being of citizens.
Economic Environment of Project Conception
A cost benefit analysis for this project was done to effectively determine its feasibility during the appraisal process. This project fostered a significant reduction in poverty across the three cities. One of the key objectives of this project was to effectively improve the access of citizens to basic services especially among the urban poor in the three cities. Consequently, this project increased the household wealth of citizens by enhancing higher real estate values together with the increased access to jobs for the poor citizens. Bolivia witnessed a significant rise in the country’s population as it grew to more than five times of the 3.7% population witnessed since 1950 and 2012 (Trohanis, 2016, p. 7). This signifies the importance of this project in enhancing the development of programs that address poverty, social exclusion and inequality issues.
Political Environment of Project Conception
Conversely, the new government aimed at addressing the most dominant social problems in the country which were primarily based on poverty (Trohanis, 2016, p. 7). To address the issues, the government targeted to invest in urban areas where there was a rising number of urbanizations, increasing poverty levels, transport congestion, limitations in public service access, and increased natural disasters exposure. The government initiated its operations in there Bolivia’s city that carried the most population, which are, Santa Cruz, La Paz, and El Alto.
Pre-Project
The project began in December 2005 when the new government was elected. The new government came in with a solid mandate to consider the long-lasting social issues where poverty reduction was the primary concern. The main areas of the target were urban localities, given that they are the fast points for the growth of urbanization, and they are levels of urban poverty. In addition, urban areas are more vulnerable to natural disasters and solve the long-standing issue of congestions that impact the poor and vulnerable residents more. According to the project, the lack of physical infrastructure among the poor neighborhoods and the vulnerability of the areas with earthquakes necessitated an integrated urban setting intervention.
Quality of the Analysis of Range of Project Appraisal
This project was subdivided into three components which are the La Paz urban upgrading, improvement of El Alto’s urban transport system, and construction of Santa Cruz sanitation system. The first component included constructing pedestrian and motorists’ easy access roads, pathways, stairs and public stops (Trohanis, 2016, p. 8). In addition, the government needed to install street lightings, construct or improve the drainage systems, establish retaining walls and other works that mitigate the risk of floods or erosion, development of sanitation facilities, construction of public parks and community centers, and establishment of points for solid waste management and collection.
The second component was the construction of modern transport systems in El Alto. It comprised of provision of technical training and assistance to OMOMA staff which will help them in planning, execution of the Project, evaluation, designing and supervising public transport systems (Trohanis, 2016, p. 9). It will also assist them in maintenance, traffic engineering, and management of the environment. The government also required to provide technical assistance in the redesigning of regulations that govern urban transport and internal administration practices.
On the third component which was improving Santa Cruz sanitation, the government required to work closely with SAGUAPAC. The company was to evaluate and examine the scale, nature and potential impacts on the economy, culture, environment, and social conditions by the component. The subdivision also included training and assisting SAGUAPAC staff with technical training and assistance on water and sewerage treatment.
Feasibility Concepts, Techniques and Methods Used
Economic
The economic feasibility of the Project was conducted to assess its financial practicability. Indeed, there was a need to establish if the available funds could be sufficient to accomplish the project. To achieve this, a cost benefit analysis of the three components was conducted. Cost benefit analysis was intended to provide a justification for the use of funds. Since each subdivision had independent components, subsectors, and in diverse cities, three analysis were conducted.
Socio-Economic
A socio-economic feasibility was conducted to assess the general features of the service delivery, programs and neighborhood. The planners used surveys in all areas to collect information about the size of households, level of income and expenses which were later classified by age and gender. Other information collected include education, health status, primary language, water access, housing and other basic services. According to the reports, the city’s residents were very needy.
Strength of the Proposal
The project proposal included components of technical design that were well informed. This is because it borrowed and applied lessons from Latin American projects on urban upgrading to develop component 1 in La Paz. They also incorporated valuable practices from former works and partners in similar programs. Designing practices of component 3 in Santa Cruz sanitation project was governed by good practices in the sector.
Weaknesses of the Project Proposal
The design was very complex due to the government’s proposal to develop the project in three different components. The cities had diverse needs and their institutional capacities were different. This decision did not take full consideration of the weak capabilities of each city and mitigation measures were not put in place. Furthermore, the project proposal’s M&E was complex as it contained many indicators. It is challenging and impossible to collect data and measure some of the frameworks.
The Role of Contracts in Dispute Resolution During the Pre-Project Phase
It is essential that before embarking on a specific task that has an economic or legal value, the involved party should have a contract. A contract assures the parties of existence of an agreement. However, it does not have to be written or documented as long as the parties agree. A contract helps the involved organizations in resolutions in case of a dispute. In the Bolivian project, various stakeholders were involved in the pre-project phase such as the government, the World Bank, contractors and the citizen.
Project Execution
The project execution of Bolivian urban infrastructure was done in phases. El Alto’s urban transport system was upgraded designed to offer some specific activities. The cost of the project was around US$21.4 million, out of which US$12 million was financed by the bank (Trohanis, 2016, p. 19). In La Paz, the project was undertaken to strengthen and provide development of communities residing in the BCdV neighborhoods (Castelli et al., 2017, p. 437). Furthermore, the project laid out a well-established a plan meant for contingency in response to the natural hazards. The project involved support of the required technical assistance and goods, and it ensured the preparation, supervision, implementation, and audit of the project.
The transport system in El Alto cost US$12 million, out of which US$ was financed by the bank (Trohanis, 2016, p. 8). The project ensured that support was established regarding autonomous municipalities. El Alto’s transport sector investments were also implemented and the city’s budget strengthened. The technical assistance was established to ensure that OMOMA was equipped for project implementation, audit, and supervision. As a result of the changes in El Alto’s municipal structure, an amendment was made to see the changes in the OMOMA.
Quality of the Analysis of Range of Project Execution
For component 1, the implementation issues were addressed adequately due to the available response by PIU and allocation of adequate resources. Conversely, the project development objectives indicator for the component were not appropriately selected. On the other hand, component 2 faced several challenges during implementation. First, the project lacked qualified labor, procurement, technical, and financial planning ability. The low compensation policies set for the project could not retain qualified personnel. There was also weak institutional coordination such as in GCA and GAMEA unit lines. The implementation team which was the municipal government did not collaborate well with the utility companies.
Feasibility Concepts, Techniques and Methods Used
Environmental
An environmental feasibility study was conducted to assess the environmental impacts of the three components. An Environmental Management Framework as required by the law in Bolivia and bank policy was prepared to provide the impacts, mitigation and monitoring practices and programs. It also indicated how to minimize, prevent, mitigate, and compensate potential impacts on public works on noise, atmosphere and solid waste emissions.
Socio-Economic
A socio-economic feasibility study was conducted and a Resettlement Policy Framework (RPF) prepared. The populations affected by the project’s implementation were identified resettlement plans prepared. In the first component, third party disturbance was addressed through design changes. For the second component, the agency in charge of implementation prepared a conflict management plan and a voluntary cession of land document prepared. A retroactive and an in-kind payment was prepared for property owners where the Av. Santa Cruz-Tramo 1 was constructed. There were no social issues present in component 3.
Financial Management
The financial management capabilities were assessed and were strengthened to ensure proper funds management. The financial performance was moderately satisfactory but needed key improvement in areas such as updating measures, improving GCA and municipal offices coordination, and preparation of financial reports.
Risk Assessment
Component 1 faced an insufficient funds risk rob used for maintenance and operation. Component 2 had a political relationship and limited budget for maintenance risk. The subdivision also faced high traffic levels than the expected. Component 3 did not have any primary risk. However, natural disasters such as floods, earthquake, and landslides are a major Bolivian risk.
The Role of Contracts in Dispute Resolution During the Project Execution
During the implementation phase, contracts ensure various parties adhere and meet the required activity standards. The project developers required to have a contract with the various governments and organizations involved. Contracts in this phase would have ensured a smooth flow of work without disruption from any involved party. For instance, a contract with different municipal government officials would have ensured the political disputes between them do not affect the project’s development. Moreover, a contract between different organizations would have improved their collaboration. In case of a change in the initial agreement, the contract should be changed effectively.
Post Project Analysis
Each part of the project had respective targets meant to be achieved at the end of the project. To the end of the project, the La Paz component contributed significantly to the women’s employment opportunities, incomes, and overall participation in the project. One of the project’s key elements was to improve the availability of essential services to the poor urban cities of La Paz, El Alto, and Santa Cruz. In La Paz, the project increased the household wealth by a higher percentage and established a place where a more significant number of people could report safely to their respective neighborhoods.
Quality of the Analysis of Range of Project Analysis
Improvement of urban infrastructure and values of property in the selected cities was successfully achieved. This was because the project provided improved access to basic services improving living conditions. Component 1 provided over 5,500 houses with access to sanitary networks, provided sanitation to over 28000 people, increased access to seasonal roads by 73%, established access to recreational facilities to more than 5,000 families and access to houses and spaces by 116% (Trohanis, 2016, p. 12). There was an improvement in urban mobility reducing average travel time from La Paz to El Alto by 17 minutes (Trohanis, 2016, p. 12). Economic feasibility conducted using a cost benefit analysis at the end of each sub-project to identify the financial benefit of the project.
The Role of Contracts in Dispute Resolution During the Project Analysis
During the project analysis stage, various subtasks are assessed alongside the expected results. In this stage, the developers are required to provide a report of their achievement in comparison to the set target. Contracts help to render a developer success or failure. They are used by project owners to compensate the developers according to the work done. Contracts ensure that all parties adhere to their obligation without failure to prevent conflict. In the case of the Bolivian project, developers successfully completed the project and were compensated.
Conclusion
In conclusion, like other countries, the government of Bolivia works appropriately to plan for urban development. After his ascension to power, the new Bolivia president Evo Morales aimed at addressing the most dominant social problems in the country which were primarily based on poverty. To address the issues, the government targeted to invest in urban areas where there was a rising number of urbanizations, increasing poverty levels, transport congestion, limitations in public service access, and increased natural disasters exposure. The government of Bolivia, aware of urbanization challenges, took steps to establish policy tools meant to mitigate the issues. Through the concerned agents for social and economic planning development, the national government recognized the urgent need to advance the urbanization process.
This project was subdivided into three components which are the La Paz urban upgrading, improvement of El Alto’s urban transport system, and construction of Santa Cruz sanitation system. For component 1, the implementation issues were addressed adequately due to the available response by PIU and allocation of adequate resources. Conversely, the project development objectives indicator for the component were not appropriately selected. On the other hand, component 2 faced several challenges during implementation. First, the project lacked qualified labor, weak institutional coordination, the municipal government did not collaborate well with the utility companies, weak environmental governance and weak political relationship between municipalities. The component also had a poor design which omitted the gas and water networks that would be affected resulting in project delay. Component 3 was affected by oil prices, affecting the cost of critical materials. Improvement of urban infrastructure and values of property in the selected cities was successfully achieved. This was because the project provided improved access to basic services improving living conditions.
Recommendations
It is important to build communities but not only the infrastructure. Similar to other projects financed in different countries and have been successful, the La Paz project brought visible and tangible improvements to the residents, specifically in their neighborhoods, and raised their living standards. Consequently, there are constitutional mechanisms that can promote the community perception of common interests and understand the financial and technical implications of specific issues. The establishment of a fundamental base in which all data regarding the standards of individuals, conditions, and infrastructure gaps could help prioritize future projects. The concerned bodies should complement infrastructure investments, and it helps in ensuring scaling up and resilience which then builds sustainable options. In regard, the reforms should entail those beyond project implementation more so in areas to do with land planning, land management in the urban setting, and risk management.
Reference List
Castelli, G., Foderi, C., Guzman, B.H., Ossoli, L., Kempff, Y., Bresci, E. and Salbitano, F., (2017) ‘Planting waterscapes: Green infrastructures, landscape and hydrological modeling for the future of Santa Cruz de la Sierra, Bolivia’. Forests, 8(11), p.437.
Trohanis, Z.E., 2016. Bolivia-Bolivia Urban Infrastructure Project: P083979-Implementation Status Results Report: Sequence 20 (No. ISR24211, pp. 1-0). The World Bank.