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

ACTION FICHE 10th EDF CURAÇAO

(DUTCH OCT)

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

Action Fiche for Curaçao (Dutch OCT)

1. IDENTIFICATION

Title/Number URBAN INFRASTRUCTURE FOR SOCIALLY DEPRIVED

COMMUNITIES

Total cost EU contribution: The total EC amount is 11,25 M€ (47% of IP)

Aid method / Project approach indirect centralized management via a Delegation

Method of Agreement (DA) between the Commission and SONA (Stichting
implementation Ontwikkeling Nederlandse Antillen)

DAC-code 16220 Sector Low-cost housing

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

2. RATIONALE

.1. Sector context

On 10 October 2010 Curaçao gained autonomous status within the Kingdom of the Netherlands and
the Netherlands Antilles ceased to exist. The government of the autonomous country of Curaçao
appointed the Prime Minister as Territorial Authorizing Officer (TAO) and the Minister of Economic
Development as Deputy TAO (DTAO) on political level, while the Director of the Sector Foreign
Economic Cooperation has been appointed as DTAO on administrative (operational /technical) level.
The government confirmed the intention to utilize funds under the 10th EDF to extend the 9th EDF
“Urban Infrastructure Programme (UIP)” that is now being implemented.

During the 2010 - 2014 Governing periods, the Government is committed to achieve improvements of
living standards and of social cohesion by improving the living conditions in socially deprived
neighborhoods through infrastructure improvements. It is a key component of the Government’s
poverty alleviation strategy. The poor living conditions and the incidence of violence in
neighborhoods in recent years has led to increased popular and policy concern. On the one hand
violence may increases social poverty and reduces (sustainable) development; on the other hand an
increase of (social) poverty can result in more violent behavior. When infrastructure is degraded
through poor maintenance or lack of upgrading, investors will be more hesitant and tourists more
reluctant to spend their holidays on an island perhaps perceived as violent. On these grounds the
Government of Curaçao decided to use 10th EDF funding to continue and expand the 9 th EDF
Programme of “Urban Infrastructure in Socially Deprived Areas”, and focus on several deprived
communities, some already identified by the 9th EDF Feasibility Study.

The 10th EDF programme will consist of:

1: Identified infrastructural upgrading by the Housing Foundation Curaçao (Fundashon Kas

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

2. Upgrading of the already identified deprived areas of Kortijn and Nieuw-Nederland (9 th EDF
Feasibility Study 2007 by WSP imc).

The proposed action is in line with EC Development objectives to promote economic and social
development (of the OCTs) and is consistent with the 10th EDF Single Programming Document.

The project intends to address the following problem.

Low-income groups of the population are concentrated in sub-standard urban neighborhoods with
dilapidated basic infrastructure, including water supply, sewage systems, waste disposal, roads,
streetlights, pavements and drains plus poor and overcrowded housing conditions. These low-income
communities are also characterized by high rates of unemployment, low levels of education, a high
percentage of single mothers, drug abuse and a high proportion of immigrants. According to the
census 2001 in Curaçao, approximately 26,000 people or 20 percent of the population live in socially
deprived communities (sources: Atakando Pobresa & Social Development and Poverty Related
Issues, Reda Sosial). A new census has been carried out in 2011, the results of which are now being
processed. The demand for social housing exceeds supply, a situation exacerbated on Curaçao by the
lack of available, publicly-owned land. Up to and including 2009, the FKP received 8,100
applications for housing.

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The 9th EDF feasibility study for urban infrastructure (WSP imc, 2007) considered 12 low-income
neighborhoods, of which two (Parera/Cocowijk and Nieuw Nederland) were selected for
improvement from a shortlist of five. The remaining three neighborhoods (Kortijn, Normandie/Weis
afó and Souax) were not incorporated due to insufficient funding and because of potential conflict
with private land ownership (Kortijn partially).The FKP has identified other (Fortuna Ariba, Sapaté,
Kirindongo Abao, Bonam, Mahuma, Wechi and Tera Cora) plans for new housing developments to
take place in the next 2-3 years and has prepared layout drawings, master plans and cost-estimates.

Under the 10th EDF, the priority list of needy areas can be revisited and the 10 th EDF funds will be
used to extend on the ongoing 9th EDF project in Nieuw Nederland, to implement improvements in
Kortijn and to provide infrastructure in line with the new plans of FKP for the areas Fortuna Ariba
Phase 2, Tera Corá, Sapaté H and Wechi.

On the 24th of May the Court of Law in Curaçao decided that the necessary studies should be carried
out first before final destination can be determent for the area of Wechi. Taking into account the time
factor of such a study it has been decided not to take along the infrastructural development of Wechi
with the 10-th EDF. With these funds a more comprehensive infrastructural improvement and needed
facilities for the five other neighborhoods can be created.

.2. Lessons learnt

The ROM mission of May/June 2010 to study the 9 th EDF Urban Infrastructure Programme in the five
ex-NEA islands found strong local ownership, including in Curaçao. In August 2010 the 9 th EDF
project (urban infrastructure) has been subject to a first year evaluation. The conclusion was that the
9th EDF project design is "sound and apparently thoroughly studied". During the first Steering
Committee meeting of this year 2011 (March 24 th 2011) held on the Island of Saba the state of affairs,
progress, planning and encountered bottlenecks were discussed. In general it was concluded that the
implementation is on schedule. From the progress and results of the 9 th EDF programme on urban
infrastructure the choice for more infrastructural improvements with funding from the 10 th EDF
programme is therefore justified and will certainly contribute to better living conditions in the selected
areas and communities.

.3. Complementary actions

 The 9th EDF Urban Infrastructure Programme for Socially Deprived Communities (€24 million) is
currently underway, with a Curaçao component of € 3.1 million for improved infrastructure in
Nieuw Nederland, and Parerawijk/Cocowijk (sewerage, drainage, road and walkway paving, play
grounds and street light armatures). This will be directly complemented under 10th EDF. This 9th
EDF programme also includes capacity building aimed primarily at the public utilities on the five
ex-NEA islands for improvements in planning and maintenance.

 The Netherlands government Socio-Economic Initiative (signed October 2005) aims at poverty
reduction in the ex-Netherlands Antilles though various social and building projects (€ 20
million).

 The Curaçao government supports the programme “Secretariat on Integrated Urban Neighborhood
Development” established in 2009 to coordinate the urban improvement programme for the period
2009 - 2019. This Secretariat executes neighborhood development initiatives with Dutch funding
and assistance from the Dutch Ministry of Urban Planning.

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 The 10th EDF action is complementary to the housing and infrastructure programme of the FKP,
which has developed the schemes proposed for EDF funding to a fairly mature stage (layout
drawings, master plans, cost-estimates).

.4. Donor coordination

Coordination between Curaçao and the EC/Delegation

The Prime Minister and the Minister of Economic Development of Curacao are respectively
Territorial Authorizing Officer (TAO) and Deputy TAO (DTAO) on political level. The Director of the
Sector Foreign Economic Cooperation of the Ministry of Economic Development is Deputy TAO on
administrative, operational/technical level. The work processes for preparation and programming of
the 10th EDF are being coordinated by the office of the last mentioned entity. During implementation
phase the TAO will be responsible for the monitoring. The TAO and Deputy TAO’s maintain close
contact, frequent communication and consultation with the Delegation and involving stakeholders
(see 3.5. Stakeholders).

Coordination with Member State/other donors

The proposed implementation mechanism is indirect centralized management via a Delegation
Agreement with SONA (Stichting Ontwikkeling Nederlandse Antillen) a foundation of the Member
State. A Steering Committee will be established that will meet on regular basis. In Steering
Committee (SC) meetings key stakeholders are provided an opportunity for information on overall
strategic direction and the opportunity to deliver input. Technical and financial implementation
progress will be reviewed in the SC meetings.

DESCRIPTION

.1. Objectives

The overall or general objective is improvement of living conditions of socially deprived (low
income) communities and assists poverty alleviation in Curaçao

The specific objective or purpose of the project is the improvement of infrastructure in selected,
deprived urban neighborhoods. The EU support will improve infrastructure in the following selected
areas: Nieuw Nederland, Kortijn, Fortuna Ariba phase 2, Tera Cora and Sapate block H.

.2. Expected results and main activities

Infrastructural improvement projects will be implemented in 5 selected priority areas of deprived

urban neighborhoods. The expected results are improved roads, sewerage, street lighting, drainage,
pavements, services to new lots etc leading to improved living conditions, more and better sanitary
conditions, reduced traffic, reduction of flood and dust problems, multifunctional community
building, recreation /sport facility and the infrastructure for further construction of social housing. The
project will have a strong positive impact on low cost housing for deprived citizens and multi-amenity
centers that will be built in some communities will contribute to social cohesion.

The priorities low-income communities selected for improvement are Nieuw Nederland, Kortijn,
Fortuna Ariba Phase 2, Tera Cora, Sapate block H. At the end of the projects the number of
beneficiaries will be about 4,860 persons (or 1,860 households). The improvements in Nieuw
Nederland will be in addition to those already underway with 9th EDF resources. The improvements of

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

Kortijn area were already identified by the 9 th EDF Feasibility Study but could then not be executed
by budget restraints.
Neighbor- Proposed Expected Result(s) Estimated nr of
hood project beneficiaries &
households
Nieuw Improvements to Improved traffic and pedestrian access and movement, safety Bf- 500; Hh- 165
Nederland existing area and security;
Eliminating or reducing the amount of flooding;
Less frequent, lower spending on road, sewer and drain O&M,
approx. 1750 m1 street length and approx. 1160 m1 of
sewerage works.
Increased tourism and related business opportunities.

Kortijn Improvements to Improved traffic and pedestrian access and movement, safety Bf- 900; Hh- 285
existing area and Security by paving approx. 850 m1 of roads, 1,5 km1
streets resurfaced, 3,2 km1 of pedestrian alleyways and
footpaths paved and improved. Street lighting provided and
improved
Eliminating or reducing the amount of flooding.
Less frequent and lower expenditure on maintenance of roads
and drainage.
Increased tourism and related business opportunities.
Fortuna Multifunctional Improved living environment, neighborhood facilities. This project:
Ariba Phase and A multifunctional building of approx 260m2 and child Bf- 258; Hh- 94
II neighborhood recreation place of approx. 120m2 within a total recreation
facilities, child (56*3+28*2+12*4)
area of 1900m2. A football field with facilities
recreation area Expected 2013-15:
with hereby To serve 94 new low-cost households with infrastructure, 4500
accompanying m2 paved parking area with landscaping. Bf- 960; Hh- 387
infrastructure. The neighborhood facilities are also serving approx. 300
nearby existing low-cost household.

Tera Cora New New infrastructure to serve 165 low-cost households approx. This project:
North infrastructure 860 m1of 5.5.m1 wide paved roads, 3500 m2 paved pedestrian Bf: 500; Hh: 165
and area, 800 m1 sewage works and utilities, approx. 4800m2
neighborhood recreation- and play area and neighborhood multifunctional Expected 2013-15:
facilities for facility and child playground. 16000m2 park-area and an Same as above
extension of an effluent irrigation line for landscaping neighborhood.
existing area. Improved living environment for existing neighborhood.

Sapaté Improvements to Improved traffic and pedestrian access and movement, safety This project:
Block H existing and security by paving 2800 m2 roads and pedestrian area, 980 Bf: 375; Hh: 125
infrastructure. m2 walking pathway and utilities for street lightning. A
community functional center, small playground, landscaping Expected 2013-15:
and upgrading recreation area. Bf- 2000; Hh- 858
Eliminating or reducing the amount of flooding;
Less/lower spending on roads, drainage and O&M

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Activities and implementation timetable

The activities to be carried out and nominal timing are as follows:
Detailed Technical Designs: by own means of the Beneficiary; ready month 1 (after signing FA).
Preparation Tender documents for works, ready month 2 - 6
Preparation Tender documents for services, ready month 4 – 6
Forecast, procurement notice and tendering period and award month 7 - 12
Works implementation: months 13-31.
Works maintenance period: months 31-37

Audits Yearly
Evaluation: Final; before closing phase.
Detailed time table is given in Appendix 3 of the Technical and Administrative Provisions.(TAPS)

.3. Risks and assumptions

Risks:

 The risk of project delays and cost inflation exists because of interaction of works with existing
services (water, power, telephones and sewerage). It is important that utility companies are
engaged fully in the planning and design phase. There is some risk of disruption to the population
and possibly to the tourist sector due to construction, but the work programme will be designed to
minimize this.

 Market conform engineering estimates are not reflected in the tender values. However it is
assumed that the 9th EDF experience has generated accurate knowledge of unit rates for
construction and that tenders will be delivered within budget.

 Availability of competent contractors and competitive bidding of contracts.

 Government funding is available for maintenance.

 The risk for social housing projects as complementation on the present 10 th EDF infrastructure
projects is minimized due to the fact that:
- FKP funding for realization of social housing projects is available. The reserves FKP can count
on are:
a) FKP has built a reserve (revolving fund) during the eighties and nineties from
government funds invested in bonds and time deposits, against (at that time) favorable
interest rates.
b) To stimulate the "own-your-own-home" concept in 2000 FKP invested substantial
capital providing mortgages which accrued interest.
c) FKP applies the so-called "cross-subsidy" principle which is up to today very
important, by developing middle-income housing projects (houses for sale), additional
income is generated to finance construction of low-income housing.
d) FKP still has a small reserve, as a result of the soft loans received from Dutch
Development Aid dated back from the eighties. These reserves are being used to cover
deficits on FKP social housing projects.

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Assumptions:
 The government’s administrations and related (utility) agencies will cooperate with the community
to achieve the projects purpose.
 Capacity building toward participation leads to adequate sustainability
 Community takes good care of the project results.
 Community accepting the need to improve the living environment
 Competent governmental departments and FKP are available for management, design and
supervision

.4. Crosscutting Issues

The improvement of infrastructure in the selected, deprived urban neighborhoods of Nieuw

Nederland, Kortijn, Fortuna Ariba phase 2, Tera Cora, Sapate block H will have a direct positive
effect on Curacao’s progress towards the reduction of poverty. The environmental impact will be
significantly positive, with improved drainage, sewerage collection and dust suppression.
Environmental screening (establishing risks and mitigating measures) was carried out for different
environmental threats for the 9th EDF feasibility for urban infrastructure improvements. They remain
valid.
Women have a smaller share of the job market and are mainly employed in low-paid jobs. About 21%
of households on Curaçao are single parent-headed, rising to 50% in many of the low-income areas;
of these, about 95% are female-headed, with on average 1.8 children at home of age 10.4 years (2001
census).

.5. Stakeholders

A stakeholder analysis and workshop was carried out for the 9th EDF Feasibility Study. The main
beneficiaries are the current and future inhabitants of the selected areas. The FKP will be closely
involved in financing and construction of future housing and management of social housing and social
services, as will neighborhood committees (Sentros di Barios). Utility companies Aqualectra (water
and electricity) and United Telecommunication Services (UTS) will be involved in network extension
and maintenance. General technical coordination will be by the Ministry of Traffic, Transport &
Urban Planning. Political responsibility will lie with the Prime Minister/TAO. SONA (as delegate
body) will function as Contracting Authority.

Stakeholders, relevant partners Primary Interest/ Positive/ effected by Commitment

and parties role in the project project

Key stakeholders:

Government, in particular: Politically responsible Positively because project will Strategic goals
contribute to achieve mentioned in
Prime Minister/Minister of General Affairs Government strategic goals Governing Accord
(TAO), Minister of Economic Development
(Deputy-TAO)

Minister of Social Development & Welfare

(MSDF), Minister of Traffic, Transport &
Urban Planning (MTTUP)

Ministry of Economic Development (Sector Responsibility as Positively Preparation of SPD,

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Stakeholders, relevant partners Primary Interest/ Positive/ effected by Commitment

and parties role in the project project

Foreign Economic Cooperation: SFEC) Deputy TAO on Coordination with

administrative level Donors and
(operational/technical) Stakeholders

Ministry of Traffic, Transport & Urban General coordination Positively because project will Coordination and
Planning (MTTUP) contribute to achieve Ministry’s advisory
objectives responsibilities to
government

Delegation of the European Commission in Purpose (EC) is “to Positive, because of close Commitment of 10th
Guyana (ECD) promote the economic cooperation with TAO, DTAOs EDF funds
and social development and SFEC
of the OCT’s”

Stichting Ontwikkeling Nederlandse Antillen Contracting Authority Continuation of 9th EDF Delegation
(SONA), Uitvoeringsorgaan SONA projects and execution of 10th Agreement
(USONA) EDF.

Fundashon Kas Popular (Housing Management and Realization of social housing Planning,
Foundation: FKP) execution of social projects information, co
housing financing of pre-
plans, design and
execution

Other stakeholders, partner and parties:

Aqualectra; the Water & Electricity Realization of water Extension of network

Production & Distribution Company and electricity Delivery
system

United Telecommunication Services (UTS) Realization of Extension of network

communication
delivery system

Program Secretariat Neighborhood Link with National Positively. Enhances ownership

Improvement Curacao Neighborhood and capacity building.
Improvement Program
2009-2019

Neighborhood Committees (Sentro di Improved social and Positively. Enhances ownership Taking care of
Barios’: e.g. Seru Fortuna, , Tera Kora, urban services and capacity building. neighborhood
Sapaté, Punda, Otrabanda covering a.o.
Kortijn)

Inhabitants of socially deprived Beneficiaries Improvement of quality of life, Involvement via

neighborhoods living circumstances and social neighborhood
cohesion committees

Contractor Carrying out project

within terms

The key stakeholders for the EDF 10 Urban Infrastructure project are the Ministry of Transport,
Traffic and Urban Planning (MTTUP), Ministry of Economic Development (MEO) and FKP.

The former Public Works Department (PWD) and Department of Urban Planning and Social Housing
(UPDSH) have been both incorporated under MTTUP. The Business plan of MTTUP presents a new

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organizational structure and lays down the direction for the future of MTTUP and the standards for its
success.

In the Ministry of Economic Development Sector Foreign Economic Cooperation the former
Department for Development Cooperation is incorporated which took care of the technical and
administrative tasks of the TAO.

FKP possess the technical and administrative capacity for this EDF 10 project as well as sufficient
financial resources. FKP has developed and managed since its establishment a lot of social housing
projects and can refer to a long list of developed and realized social housing projects. FKP will be
guided by USONA with its practical knowledge about the preparation of project documents according
to EDF methodology.

Reference is also made to page 23 of the Feasibility study concerning identified stakeholders and
Annex 2 page 6 to 11 where a stakeholder’s analysis is presented. The stakeholder’s information
provided is still valid.

IMPLEMENTATION ISSUES

.1. Method of implementation

The method of implementation of the 10-th EDF project Urban Infrastructure for Socially Deprived
Communities will be through indirect centralized management through a Delegation Agreement (DA)
with Stichting Ontwikkeling Nederlandse Antillen (SONA), in accordance with Article 26 of
Regulation (EC) No 215/2008 on the financial regulation applicable to the 10th European
Development Fund. SONA has been chosen as delegatee body (with implementing agency USONA).
The Commission has already delegated SONA to manage the 9 th EDF Urban Infrastructures for
Socially Deprived Areas into which the 10th EDF funding will be integrated. The ROM report of 2010
for the 9th EDF action states that: the project is on track and the project resources are managed in a
transparent and accountable manner.

The Contracting Authority will be SONA represented by USONA, which will be responsible for
procurements, contracting and payments procedures. EU procedures (10 th EDF) will apply. The
Delegation Agreement will include provision for TA to assist with technical matters and procurement.
The Supervisors will be MTTUP (Public Works) for Kortijn and Nieuw-Nederland and FKP for the
other projects. Both supervisor representatives will be appointed through simplified procurement
procedures (Two tenders). And for works Two open local tenders will be launched. One tender for
Kortijn and Nieuw Nederland, and the other tender for Fortuna Ariba phase 2, Tera Cora and Sapate
block H

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.2. Procurement and grant award procedures [/programme estimates]

Choose one or more of the following options a), b) or c):

a) The following is to be inserted without modification if EU procedures apply:

1) Contracts

All contracts implementing the action must be awarded and implemented in accordance with the
procedures and standard documents laid down and published by the European Commission for the
implementation of external operations, in force at the time of the launch of the procedure in question.

Participation in the award of contracts for the present action shall be open to all natural and legal
persons covered by ACP/EDF regulations. Further extensions of this participation to other natural or
legal persons by the concerned authorizing officer shall be subject to the conditions provided for in
indicate: e.g. articles 20 of Annex IV of the Cotonou Agreement.

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.3. Budget and calendar

# Island area Types of projects and components Total cost Building cost Infrastructure cost ANG
estimated ANG
ANG Own Own 10th EDF
contribution contribution
1 Nieuw Improvement of existing area (street
Nederland surfacing, footpaths, surface drainage,
street lights, services to facilitate new
6,750,000 - - 6,750,000
social housing infill in open plots, plus
public amenity areas, plus unpaved streets,
foul & surface water sewerage)
2 Kortijn Improvement of existing area (street
surfacing, footpaths, surface drainage,
street lights, services to facilitate new 5,500,000 - - 5,500,000
social housing infill in open plots, plus
public amenity areas)
3 Fortuna Infrastructure, child recreation area and
Ariba phase play ground, multifunctional place, soccer 13,800,000 11,200,000 - 2,600,000
2 field and neighborhood facilities
4 Tera Cora Infrastructure, child recreation area and
play ground, multifunctional place, park 27,400,000 19,400,000 - 8,000,000
area and effluent irrigation line.
5 Sapate Blok Infrastructure and landscaping,
1,800,000 - 1,800,000
H neighborhood facility and playground
Subtotal cost (ANG) 55,250,000 30,600,000 24,650,000

Subtotal cost ( €= 2.60) 21,250,000 11,769,231 9,480,769

The project cost is estimated at EUR 9,481.000 million, which shall be financed from the European
Development Fund (EDF) of the European Union. MTTUP and FKP will contribute with engineering
cost for the projects. FKP will finance the cost of construction of social housing.

Indicative Timetable
Activi ty 2011 2012 2013
1 2 3 4 1 2 3 4 1 2 3 4
Part I
Submission of Single Programming
1 March ‘11
Document Part A to the delegation

Submission of Stand-alone Project

2 March ‘11
Identification Fiche (SPIF)

Presentation of the identification fiche

3 April ‘11
at oQSG

4 Submission of Action Fiche (AF) June ‘11

5 Presentation of Action Fiche at oQSG September ‘11

6 Signing Financing Agreement October - December ‘11

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.4. Performance monitoring

As a programme steering committee has been established for the 9th EDF “Urban Infrastructure for
Socially Deprived Areas “ programme, this will also be installed for the 10 th EDF Programme on a
twice-yearly meeting basis to review technical and financial progress against the detailed work
programme. The project will also be subject to the yearly Results Oriented Monitoring (ROM) via
independent consultants, starting from the sixth month of project activities, which will be finalized at
latest 6 months before the end of the operational implementation phase.

.5. Evaluation and audit

The 10th EDF projects will be audited financially on a yearly basis including an one end-of project
evaluation and audit. This audit cycle has already been established through the current 9 th EDF
Financing Agreement and the current 9th EDF Delegation Agreement. In view of similarity with the
current 9th EDF programme for Curaçao no mid-term evaluation will be foreseen but a final
evaluation before the closing phase begins.

.6. Communication and visibility

Project visibility actions include creation of sign boards, newspaper information and awareness
campaigns for house connections. This will be supplemented with budget from this Financing
Agreement.
In case of indirect centralized management (EU Budget & EDF) : please attach to the present fiche
the table appearing as an Appendix - (Verifications regarding the criteria of indirect centralized
management set forth in the applicable Financial Regulation).

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