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Document of The World Bank FOR OFFICIAL USE ONLY Report No: ICR00006127 IMPLEMENTATION COMPLETION AND RESULTS REPORT P144614 ON A GRANT IN THE AMOUNT OF SDR 29.1 MILLION (US$45 MILLION EQUIVALENT) TO THE REPUBLIC OF HAITI FOR A CULTURAL HERITAGE PRESERVATION AND TOURISM SECTOR SUPPORT PROJECT March 19, 2023 Latin America And Caribbean Region Urban, Resilience And Land Global Practice Latin America And Caribbean Region Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective March 19, 2023) Currency Unit = Haitian Gourde HTG 1.00 = US$ 0. 0 06 4 US$1.00 = HTG 1 57 FISCAL YEAR October 1 – September 30 Regional Vice President: Carlos Felipe Jaramillo Country Director: Lilia Burunciuc Regional Director: Anna Wellenstein Practice Manager: David N. Sislen Task Team Leader(s): Alexandra Ortiz ICR Main Contributor: Doekle Wielinga ABBREVIATIONS AND ACRONYMS AGP/PMA Autorité de Gestion du Parc National / Park Management Authority CERC Contingency Emergency Recovery Component CIAT Comité Interministériel d’Aménagement du Territoire/Interministerial Committee for Territorial Planning CPF Country Partnership Framework CHUD Cap - Haïtien Urban Development Project E&S Environmental and Social E RR Economic Rate of Return FCV Fragility, Conflict, and Violence GDP Gross Domestic Product GoH Gouvernement de Haïti / Government of Haiti GRM Grievance Redress Mechanism HEIS Hands - on Expanded Implementation Support IDA International Development Association ICOMOS International Council on Monuments and Sites ICR Implementation Completion a nd Results Report IFR Interim Financial Reports ISPAN Institut de Sauvegarde du Patrimoine National - National Cultural Heritage Institute ISR Interim Status Report M&E Monitoring & Evaluation MEF Ministère de l’Economie et des Finances / Ministry of Economy and Finance MC Ministère de la Culture / Ministry of Culture MDUR Municipal Development and Urban Resilience Project MoU Memorandum of Understanding MS Moderately Satisfactory MT Ministère du Tourisme / Ministry of Tourism MU Moderately Unsatisfactory NPV Net Present Value OGDNH / DMO Organisation de Gestion de la Destination du Nord d´Haiti - Destination Management Organization OP PAD Project Appraisal Document P - AGP Provisional Autorité de Gestion Provisoire du Parc National / Provisional Park Management Authority PaP Port au Prince PAP Personnes Affectées par le Projet / Project Affected People PAST Projet de Préservation du Patrimoine et d’Appui au Secteur Touristique PDO Project Development Objective PIU Project Implementation Unit PLR Performance and Learning Review PMP Park Management Plan PNH - CSSR Parc National Historique Citadelle - Sans Souci - Ramiers - National History Park RCCL Royal Caribbean Cruise Line SC Steering Committee SRP Summary Resettlement Plans TA Technical Assistance TOC Theory of Change ToR Terms of Reference UNESCO United Nations Educational, Scientific and Cultural Organization UTE Unité Technique d’Exécution - Technical Implementation Unit WHC World Heritage Committee TABLE OF CONTENTS DATA SHEET .......................................................................................................................... 1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 6 A. CONTEXT AT APPRAISAL .........................................................................................................6 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION .............................................................. 11 II. OUTCOME .................................................................................................................... 14 A. RELEVANCE OF PDOs ............................................................................................................ 14 B. ACHIEVEMENT OF PDOs ........................................................................................................ 15 C. EFFICIENCY ........................................................................................................................... 18 D. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 19 E. OTHER OUTCOMES AND IMPACTS ......................................................................................... 20 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 21 A. KEY FACTORS DURING PREPARATION ................................................................................... 21 B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 22 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 26 A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................ 26 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 28 C. BANK PERFORMANCE ........................................................................................................... 29 D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 32 V. LESSONS AND RECOMMENDATIONS ............................................................................. 33 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................... 36 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 45 ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 47 ANNEX 4. EFFICIENCY ANALYSIS ........................................................................................... 48 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ... 50 ANNEX 6. PHOTOS OF THE THREE MAIN CULTURAL HERITAGE SITES .................................... 52 ANNEX 7. PHOTOS OF THE URBAN UPGRADING CARRIED OUT BY THE PROJECT ................... 53 ANNEX 8. LIST OF COMMUNITY FUND PROJECTS.................................................................. 56 ANNEX 9. LIST OF STUDIES AND REPORTS ............................................................................ 58 ANNEX 10. MAP OF THE PROJECT ........................................................................................ 62 The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 1 of 66 DATA SHEET BASIC INFORMATION Product Information Project ID Project Name P144614 Cultural Heritage Preservation and Tourism Sector Support Project Country Financing Instrument Haiti Investment Project Financing Original EA Category Revised EA Category Partial Assessment (B) Partial Assessment (B) Organizations Borrower Implementing Agency Republic of Haiti UNITE TECHNIQUE D'EXECUTION Project Development Objective (PDO) Original PDO The objectives of the Project are to: (a) increase the attractiveness of the cultural heritage sites in North of Haiti for tourists; (b) improve the living environment for the residents living in North of Haiti; and (c) support the Recipient’s capacity to respond promptly and effectively to an Eligible Emergency, as needed. The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 2 of 66 FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing IDA-H9440 45,000,000 26,150,000 17,843,118 Total 45,000,000 26,150,000 17,843,118 Non-World Bank Financing 0 0 0 Borrower/Recipient 0 0 0 Total 0 0 0 Total Project Cost 45,000,000 26,150,000 17,843,118 KEY DATES FIN_TABLE_DAT Approval Effectiveness MTR Review Original Closing Actual Closing 19 - May - 2014 06 - Oct - 2014 29 - Jan - 2018 31 - Aug - 2020 29 - Jul - 2022 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 30 - Jun - 2017 5.85 Change in Results Framework Change in Implementation Schedule 29 - Jun - 2018 5.85 Change in Results Framework Change in Components and Cost Reallocation between Disbursement Categories Change in Procurement 06 - Jun - 2020 12.54 Cancellation of Financing Reallocation between Disbursement Categories 27 - Aug - 2020 12.54 Change in Results Framework Change in Components and Cost Change in Loan Closing Date(s) Cancellation of Financing Reallocation between Disbursement Categories Change in Implementation Schedule 09 - Oct - 2021 15.84 Reallocation between Disbursement Categories 04 - Mar - 2022 15.84 Cancellation of Financing Reallocation between Disbursement Categories The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 3 of 66 KEY RATINGS Outcome Bank Performance M&E Quality Moderately Unsatisfactory Moderately Satisfactory Modest RATINGS OF PROJECT PERFORMANCE IN ISRs No. Date ISR Archived DO Rating IP Rating Actual Disbursements (US$M) 01 27-Aug-2014 Satisfactory Satisfactory .90 02 25-Mar-2015 Satisfactory Satisfactory 2.32 03 07-Sep-2015 Satisfactory Moderately Satisfactory 2.32 04 30-Jun-2016 Moderately Satisfactory Moderately Unsatisfactory 3.85 05 06-Jan-2017 Moderately Satisfactory Moderately Unsatisfactory 3.85 06 30-Jun-2017 Moderately Satisfactory Moderately Unsatisfactory 5.85 07 30-Dec-2017 Moderately Satisfactory Moderately Unsatisfactory 5.85 08 27-Jun-2018 Moderately Satisfactory Moderately Unsatisfactory 5.85 09 19-Nov-2018 Moderately Unsatisfactory Moderately Unsatisfactory 8.85 10 14-Jun-2019 Moderately Unsatisfactory Moderately Satisfactory 11.85 11 08-Jan-2020 Moderately Unsatisfactory Moderately Satisfactory 12.54 12 21-Jun-2020 Moderately Unsatisfactory Moderately Satisfactory 12.54 13 23-Dec-2020 Moderately Satisfactory Moderately Satisfactory 12.54 14 30-Jun-2021 Moderately Satisfactory Moderately Unsatisfactory 14.79 15 20-Dec-2021 Moderately Unsatisfactory Moderately Unsatisfactory 15.84 16 29-Jul-2022 Moderately Unsatisfactory Moderately Unsatisfactory 17.84 The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 4 of 66 SECTORS AND THEMES Sectors Major Sector/Sector (%) Public Administration 17 Other Public Administration 17 Social Protection 66 Social Protection 66 Water, Sanitation and Waste Management 6 Other Water Supply, Sanitation and Waste Management 6 Industry, Trade and Services 11 Public Administration - Industry, Trade and Services 5 Trade 6 Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Private Sector Development 100 Jobs 100 Finance 2 Finance for Development 2 Disaster Risk Finance 2 Public Sector Management 4 Public Administration 4 Administrative and Civil Service Reform 1 Municipal Institution Building 3 The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 5 of 66 Urban and Rural Development 96 Urban Development 19 Urban Infrastructure and Service Delivery 19 Cultural Heritage 71 Disaster Risk Management 6 Disaster Response and Recovery 2 Disaster Risk Reduction 2 Disaster Preparedness 2 ADM STAFF Role At Approval At ICR Regional Vice President: Hasan A. Tuluy Carlos Felipe Jaramillo Country Director: Mary A. Barton-Dock Lilia Burunciuc Director: Ede Jorge Ijjasz-Vasquez Anna Wellenstein Practice Manager: Anna Wellenstein David N. Sislen Task Team Leader(s): Sylvie Debomy Alexandra Ortiz ICR Contributing Author: Doekle Geert Wielinga The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 6 of 66 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Context Country Context 1. Known as the “Pearl of the Antilles,” Haiti was the most sought-after tourist destination in the Caribbean, alongside Cuba, in the middle of the 20th Century. In 2014, with a Gross Domestic Product (GDP) per capita of US$771 (2012), and the unenviable label of “poorest country in the Americas”, the nation was recovering from the devastating earthquake of January 2010 and striving to develop new sources of growth for its economy. 2. At appraisal, the country was still recovering from the massive impact of the 2010 earthquake that resulted in damages and losses of US$7.9 billion (120 percent of GDP), with reconstruction needs being estimated at US$11.3 billion. Nevertheless, four years after the earthquake, Haiti’s economy had improved. Growth was estimated to have reached four percent in FY13, up from 2.8 percent observed in FY12. This was due to a pick- up in agricultural production, construction, and the industrial sector, as well as an improvement in security indicators. Despite substantial residual challenges, Government efforts aimed to improve climate investment and encourage entrepreneurship, as well as public-private partnerships for infrastructure. Due to its strong labor supply and its proximity to the United States, allowing shipping and travel, Haiti had the potential to attract new investments in agribusiness, apparel, and tourism, as well as establish a platform for longer-term development. 3. Although developing tourism in Haiti was perceived as a challenge, the country captured the imagination of many, and interest in traveling there was growing. Haiti had advantages, which positioned it favorably to redevelop its tourism industry: the extraordinary natural beauty of its coastline; its proximity to large French, English, and Spanish language tourism markets; its rich cultural heritage and vibrant, artistic culture; and several physically impressive sites of historical significance for Haitian, Caribbean, and world heritage. The symbolic value of such sites as the location of the first landing of Christopher Columbus in the Americas and the first successful national liberation of slaves and establishment of an independent government by emancipated people of color are of universal appeal. 4. The historic monuments in the vicinity of Cap Haïtien, the second largest city in the country, represent Haiti’s history and cultural heritage and the pride of its people. The Project, approved in 2014 was considered a priority as it was designed to rehabilitate the Citadelle Henri-Ramiers, considered the largest fortress in the Americas, the Sans Souci Palace ruins, and the Royal Chapelle, located within the National Historical Park, (PNH-CSSR - Parc National Historique Citadelle-Sans Souci-Ramiers), all of which were declared World Heritage by United Nations Educational, Scientific and Cultural Organization (UNESCO) in 1982 1 . Furthermore, Cap Haïtien and its surroundings had considerable potential for tourism and economic development. This includes the Port of 1 See Annex 6 for photos of the three main historic monuments The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 7 of 66 Labadie, which i s a private resort leased to Royal Caribbean Group for the exclusive use of passengers of its three cruise lines: Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises, until 2050. Sectoral and Institutional Context 5. A period of political stability and a sense of optimism to develop Haiti took place during the post-earthquake time. This was captured in “Haiti Tomorrow,” formulated by the Inter-ministerial Committee on Territorial Planning (CIAT), which had as its objective to transform the 2010 earthquake into an opportunity through forms of regional solidarity along three axes: the Northern region, the Capital region, and the Southern region. 6. The North had strong potential for regional development through tourism. It benefits from world-class cultural and natural heritage assets, providing solid building blocks for tourism development. For example, the annual Patron Saint festivals, under normal circumstances, typically attract one million domestic and international visitors between June and September each year. 7. Demand for tourism in the North region was growing. Around 56 percent of tourists in Haiti came from the Haitian Diaspora and the US would generate the largest share of visitors to Haiti, followed by Canada and the Dominican Republic. The US Travel Warning for Haiti were revised on August 13, 2013, as well as the Travel Advisory for Canadians, where the North as a regional destination was not identified as an area of high risk. The figures collected by the Ministère du Tourisme / Ministry of Tourism (MT) for 2013 showed an average of 2,800 visitors per month to the PNH-CSSR, one of the North’s main tourism attractions, with a conservative projection of 30,000 visitors for 2013. Receipts from international tourists in the North were US$312 million in 2009, which accounted for about 34 percent of the value of Haiti’s total service exports and 8 percent of GDP that year. 8. The 2014’s Administration was the first government to actively support tourism as a driver of growth. The MT pursued regionally based tourism development of three regions including the North coast, based on the 2013- 2014 Tourism Strategy. Actions by the Haitian public and private sector reflected the priority given to the development of the North as a tourist destination. The MT worked with the private sector to improve existing hospitality and convention facilities, as well as to construct new hospitality training centers. The FY14 budget of the MT was increased by 26 percent, and various investments were made in and around the National History Park (PNH-CSSR - Parc National Historique Citadelle-Sans Souci-Ramiers), including the recruitment of staff to work on touristic sites. In addition, the North region received several large international investments, laying the foundations for the effective development of tourism. 9. Conservation and management of cultural heritage were seen as of paramount importance for the sustainable development of tourism. The 2010 earthquake further highlighted the vulnerability of physical heritage assets and the need to prevent irreversible destruction through preventive structural reinforcement. The World Heritage Committee (WHC) highlighted the extreme vulnerability of the PNH-CSSR and the Citadel to seismic risk, with a need to intervene with both short-term emergency response and long-term protective actions to improve the seismic resilience of vulnerable assets. In such a context, the management of the PNH-CSSR was key for the sustainable development of tourism in the North. As a first step toward the establishment of a Park Management Authority (AGP - Autorité de Gestion du Parc National), the Government created an inter-ministerial committee to coordinate the activities of the main government agencies involved in the preservation of cultural heritage sites. The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 8 of 66 10. To develop the North, the Bank partnered with multiple entities allowing for a coordinated investment program to rebalance the economy. The Inter-American Development Bank (IDB) focused industrial development of the industrial park Caracol, developing a textile growth pole, water and sanitation, and solid waste management in Cap Haïtien. The US aimed to invest in the development of the port, while the Bank focused on transport, urban development, cultural heritage preservation, and tourism development. The transport projects, among others, connected Cap Haïtien to the center of the country and to Milot, where the entrance to the PNH-CSSR is located. The municipal and urban resilience project focused on reducing urban flooding and access to municipal infrastructure. The Cultural Heritage Preservation and Tousim Sector Support Project (Projet de Préservation du Patrimoine et d’Appui au Secteur Touristique - PAST) would complement this by enhancing the main attraction of the North: the national park and its monuments and promoting tourism development by strengthening tourism-related services and infrastructure. Theory of Change 11. A Theory of Change (TOC) was not required at appraisal. This Implementation Completion and Results Report (ICR) extrapolated the TOC from the Results Framework of the Project Appraisal Document (PAD), to show the causal relationship between activities, outputs, outcomes, and the impact (Figure 1). 12. Critical assumptions were derived from the risks identified at appraisal and include: 1) No major political crisis hinders the implementation of the Project; 2) The Government of Haiti (GoH) maintains the Steering Committee (SC), ensuring the proper coordination and execution throughout project implementation; 3) Community consultation and information processes are properly and largely implemented; and 4) Appropriate capacities of implementation partners to ensure high-quality rehabilitation works of cultural heritage sites. The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 9 of 66 Figure 1: Theory of Change for the PAST Project Project Development Objectives 13. The original Project Development Objective (PDO), as stated in the Financing Agreement, approved on April 22, 2014, and the PAD was to: (a) increase the attractiveness of the cultural heritage sites in North of Haiti for tourists; (b) improve the living environment for the residents living in North of Haiti; and (c) support the recipient’s capacity to respond promptly and effectively to an eligible emergency, as needed. 14. No revisions to the PDO were made throughout the Project. The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 10 of 66 Key Expected Outcomes and Outcome Indicators 15. These objectives were envisaged to be achieved through ( a ) physical investments to improve resilience, restore, conserve, and beautify heritage assets and to upgrade local infrastructure; (b) support capacity for the management of the PNH-CSSR and cultural assets, as well as to promote sound tourism development; and (c) a provision to access funds to respond promptly and effectively to an eligible emergency. 16. Achievement of the PDO was originally measured through the following outcome indicators: a) Rehabilitated buildings resistant to an 8.5 magnitude seismic event; b) An effective park management system is contributing to the sustainable development of the PNH-CSSR; c) Population in project areas satisfied with the quality of infrastructure financed by the Project; d) Increase the number of entries at the PNH-CSSR (of which from the Royal Caribbean Cruise Line (RCCL); and e) Increase the number of entities providing tourism and cultural services. Components 17. The Project included five components with a range of activities aimed to achieve the PDO:  Component A – Physical cultural heritage sites and touristic circuits in the PNH-CSSR and Cap-Haïtien historic city center (US$28 million, US$ 16.95 million at closing). The main activities consisted of (a) physical investments in the PNH-CSSR, (b) support to the management of the PNH-CSSR; physical Investments in Cap- Haïtien Historic City Center, and (c) capacity building for the Institut de Sauvegarde du Patrimoine National - National Cultural Heritage Institute (ISPAN).  Component B - Local investments in Dondon, Milot, and Cap-Haïtien (US$7 million, US$5 million at closing). This component financed (a) investments, (b) urban studies, and (c) Technical Assistance (TA) to municipalities.  Component C – Inclusive tourism sector development support (US$4 million). This component provided (a) support to the MT and the Destination Management Organization (OGDNH - Organisation de Gestion de la Destination du Nord d´Haiti), and (b) a community event and tourism development grant.  Component D - Contingent Emergency Response (US$1 million). This component was included to support an eligible emergency response as needed.  Component E - Project implementation, monitoring, and evaluation (US$5 million). This component supported (a) Project Implementation, and (b) Monitoring and Evaluation. The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 11 of 66 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION Revised PDO Indicators and Outcome Targets 18. The PDO was not revised throughout the project implementation . The outcome target values for all four PDO indicators were adjusted during the June 2018 Mid-Term Review and August 2020 restructurings. The intermediate results and indicators were also revised during these restructurings to set more realistic targets. 19. Table 1 provides details on how the indicators and targets were adjusted throughout the life of the Project, Annex 1 provides the Project Results Framework and Outputs, including original and revised targets. Table 1: Revised PDO and Intermediate Outcome Indicators and Targets The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 12 of 66 Revised PDO Indicators 20. The PDO - level Indicat or “Rehabilitated CH building resistant to a 8 magnitude event” was reformulated to: “Number of restored buildings with increased resistance against seismic events”, to make the indicator more specific and measurable. 21. The PDO Indicator “Tickets sold to the PNH-CSSR” included a sub-indicator “of which sold to RCCL visitors”. This was dropped after the 2018 restructuring, as the cruise ship company’s requirements for logistics and safety of their customers were unachievable and therefore, they were not able to visit the PNH-CSSR. Revised Components 22. No revisions to the original components occurred during the life of the Project, other than changes in the component costs: 1) Component A was reduced from US$28 million to US$16.95 million, through three restructurings: (a) June 2020 - US$3.3 million equivalent for COVID-19 response; (b) August 2020 - US$7.75 million due to dropped activities (rehabilitation of monuments in the PNH-CSSR and second phase of façades in streets of Cap Haitian); and (c) March 2022 – US$1.5 due to a dropped activity (rehabilitation of Ancienne Capitainerie). 2) Component B was reduced from US$7 to US$5 million as part of the June 2020 restructuring (COVID-19) and in August 2020 several activities were dropped (health center in Matador, artisanal production center in Milot, and works and supervision on the Picolet waterfront and the coastal forts). 3) The March 2022 restructuring canceled US$4.3 million, corresponding to savings in different activities. Since all disbursement categories by then were merged into one, it was not possible to attribute this to specific components, except for US$1.5 million to Component A, referenced above. Restructurings 23. The Project underwent six Level 2 restructurings : this included changes in the results framework (3), cancellation of funds (3), and extension of the closing date (1): Restructurings 1 and 2 – 2017, 2018 24. These two restructurings were planned as a sequence to address the significant delays that the Project faced in the rehabilitation of cultural heritage sites and establishing proper management of the PNH-CSSR. June 2017 introduced concrete objectives to achieve the interim management of the park through a Provisional Park Management Authority (P-AGP) and consequently added two new intermediary indicators to the Project’s results framework. These intermediary indicators were: (a) establish a P-AGP in charge of implementing, and (b) prepare and adopt an appropriate work program of conservation and consultation activities in the PNH-CSSR, where most of the Project's investments were to take place. This included a work plan to establish a permanent AGP by 2018 and included changes to the implementation arrangements and results framework to accelerate the implementation of the Project. Following the Mid-Term Review in January of 2018, the second of the two restructurings envisaged by the Bank and the Government of Haiti to ensure the acceleration of the implementation of the PAST Project took place, given the lack of tangible results. The restructuring included The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 13 of 66 dropping activities under Component A, whilst reinforcing some activities that support ed the P roject (saf eguards and communications). This required a reallocation of funds, and in addition, some indicators were modified to set realistic goals at that stage of the Project and align procurement with the Bank’s new framework. Restructuring 3 – 2020 25. The June 2020 restructuring consisted of a cancellation of US$5.3 million to mobilize resources to support the GoH in its response to the COVID-19 crisis under a different Bank operation. To facilitate this process, the restructuring included the creation of a new disbursement category and the reallocation of all uncommitted funds to that category. Restructuring 4 – 2020 26. This second restructuring in 2020 followed a reduction of activities under Component A, given the delays encountered in the preparation of technical documents and the impossibility of foreign firms to start work on the Project site due to COVID-19 restrictions. This restructuring included the cancellation of US$7.75 million to simplify the Project activities and provide a 23-month extension to the closing date, from August 31, 2020, to July 31, 2022. Restructuring 5 – 2021 27. This restructuring, effectuated in October of 2021, was necessary to create a new disbursement category to finance the Project’s originally unforeseen resettlement, linked to the upgrading of façades in two main streets of Cap Haïtien’s city center, due to central government level difficulties in making funds available. Restructuring 6 – 2022 28. This restructuring, taking place four months before closing of the Project, saw the cancellation of a further US$5.8 million. This included US$1.5 million, by dropping the rehabilitation Ancienne Capitainerie under Component A. The Ancienne Capitainerie rehabilitation works were scheduled to be completed in early 2022, contingent upon a successful call for bids. However, due to the latter being unsuccessful, it became impossible to complete the works. The remaining US$4.3 million corresponds to savings made on different activities, as these would not be utilized by the Project closing date. 29. In summary, the PAST was extended by 23 months, and its grant amount was reduced from US$45 million to US$26.15 million, a reduction of 42 percent. Rationale for Changes and Their Implication on the Original TOC 30. Since its effectiveness on October 6, 2014, the Project encountered a number of implementation challenges which included endogenous factors such as limited technical and fiduciary capacity within many of the participating agencies, complex institutional arrangements, and too many activities to conduct. Exogenous factors most notably include the deterioration of the political and socio-economic situation of the country and the COVID-19 pandemic. 31. The rationale for changes to the Project was to simplify it, set more realistic goals and targets, align it with the capacity of the implementing agencies, accelerate implementation by focusing on better-functioning components, strengthen project management, continue to monitor project progress, allow financing of potential The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 14 of 66 resettlement, and to contribute to COVID - 19 recovery response. The rationale for the P roject closing date extension was to allow for time to complete infrastructure works and ongoing Community Fund projects. This resulted in a reduction of the scope of the Project, specifically of outputs related to the restoration of cultural heritage sites and monuments under Component A. 32. The implication to the TOC is considerable in that one of the development outcomes, “increased attractiveness of the cultural heritage sites in North of Haiti for tourists,” and therefore also the Project’s overall impact, was much harder to achieve. The second development outcome: “Improved living conditions for the residents in the North of Haiti” was also affected, although less drastically, by a reduction of several outputs, such as dropping three solid waste management studies, canceling the restoration of the Cultural Center in Milot, and reducing the number of tourist routes and circuits. This meant, although to a lesser extent than the first development outcome, that the impact of the Project was reduced. II. OUTCOME A. RELEVANCE OF PDOs Assessment of Relevance of PDOs and Rating Rating: Substantial 33. Haiti’s current Bank engagement is based on the Country Partnership Framework (CPF) FY2016–21 (98132-HT), which has been enhanced with a Performance and Learning Review (PLR). The PDO remains consistent with this CPF as it contributes to three of its focus areas: enhancing inclusive growth by promoting development in the north of Haiti; strengthening resilience by earthquake-proofing cultural heritage and buildings; and improving governance in the management of the PNH-CSSR and by strengthening agencies managing tourism and cultural heritage. 34. At closing, the PDO remained relevant to Haiti’s development challenges and aligned with the priorities of the Government of Haiti and the Bank the Development Objectives: ‘to improve the living environment for the residents living in North of Haiti’, and ‘support the recipient’s capacity to respond promptly and effectively to an eligible emergency, as needed’. 35. These two PDOs also remained relevant to the adjustments made to the CPF, following the PLR, in particular to (a) the introduction, where relevant, of a territorial approach to investments to foster economic opportunities outside of Port au Prince (PaP), and more equitable and balanced growth, in collaboration with the private sector; and (b) further strengthening of the program’s robust approach to resilience. In July 2022, the GoH requested a follow-up project to the PAST, illustrating the relevance it saw in continuing project activities. 36. The Development Objective to: ‘increase the attractiveness of the cultural heritage sites in the North of Haiti for tourists’, has become less relevant due to the escalation of political and social issues in the country during the implementation period of the Project, exacerbated by the COVID019 pandemic, which has significantly reduced The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 15 of 66 international tourism and increased the need for more basic needs being addressed, such as food and health security. However, the potential to use these assets as a driver of development remains relevant. 37. In a high-risk environment like Haiti, there is a tendency to simplify project design. In this case, this project was ambitious in objective and design, taking informed risk to support medium- to long term development goals and create regional development opportunities and contribute to Haiti’s cultural identity, and therefore remained relevant to the portfolio. 38. Given that two the PDO remains relevant, its rating is Substantial. B. ACHIEVEMENT OF PDOs Rating: Modest Assessment of Achievement of Each Objective/Outcome 39. The achievement of the PDO is assessed against the outcome targets confirmed in the August 2020 restructuring and is unpacked along the lines of the three distinct outcomes: 1) Increase the attractiveness of the cultural heritage sites in the North of Haiti for tourists 2) Improve the living environment for the residents living in the North of Haiti 3) Support the recipient’s capacity to respond promptly and effectively to an eligible emergency, as needed. 40. It was decided not to apply the split rating method. There were changes to one outcome indicator and its’ outcome targets, which were revised downwards. However, when comparing the results of the approach followed here and the split rating method, the overall Outcome rating would be the same. 41. Despite the impact of the country’s social and political instability, the Project was able to complete: (a) the urgent conservation works in the Citadelle Henri, (b) the UNESCO studies for the management of the PNH-CSSR, which was submitted to the World Heritage Center; (c) the works to upgrade the façades of Rue 16 and 20; (d) the ISPAN documentation center; and (e) 47 community subprojects contributing to either cultural heritage or tourism in the Cap Haitian area, were implemented and financed. Other project accomplishments include the provision of public spaces and the completion of the preliminary phases of technical studies for the rehabilitation, seismic reinforcement, and museology of the monuments. 42. The Project was only partially able to Increase the attractiveness of the cultural heritage sites in North of Haiti for tourists: 4) Apart from emergency repairs to the parts of Citadelle Henri, the Project did note restore any of the three monuments or four historic buildings to increase resistance to seismic events as envisaged. However, diagnostic studies for the rehabilitation of the monuments were developed. From its effectiveness in October 2014 to mid-2016, no measurable progress was made. The Mid-Term Review (MTR) of January 2018 identified the complexity of the Project and the lack of capacity in ISPAN as problems. As a result of the March 2018 restructuring, the rehabilitation of the old prison, Maison Antênor Firmin and the Alliance Francaise were The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 16 of 66 dropped. Given cumulative delays in the execution of the Project, at restructuring in August 2021, it was agreed that the only historic building that would be upgraded would be the Ancienne Capitainerie. This activity was dropped from the Project in March 2022 after delays in the procurement of a construction firm made it impossible to complete before the Project closing. The detailed studies for the rehabilitation of the monuments, Palais Sans Soucie and Citadelle Henri-Ramiers were completed, while the final studies were dropped. In one case this was because of the hired international firm not being able to travel to Haiti, first because of COVID-19 restrictions and later because of the deteriorated security situation in Haiti. Annex 9 provides a comprehensive list of studies and reports that were produced by the Project. 5) Lacking an AGP, the Project supported the P-AGP, which was installed in 2018 and was fully operational. However, the permanent AGP was never created, putting the sustainability of an effective Park Management System, contributing to the sustainable development of the PNH-CSSR, into question. The Minister of Culture (MC) appointed a liaison agent charged with the task of developing the AGP, who left when there was a change of Government in 2020. It took time to find a new liaison, leaving no time to legally create the permanent AGP leaving this task incomplete. 6) Originally planned for 2018, the PNH-CSSR Management Plan (PMP) was completed by ISPAN in May 2022, with support from International Council of Monuments and Sites (ICOMOS) experts. By the time of writing this ICR, it was confirmed by the GoH and UNESCO that the PMP was received and approved by WHC. This allows the monuments to remain World Heritage sites and presents the GoH with the task to implement the PMP. Despite this, the PMP is not being implemented given the lack of a functioning AGP. 7) Tickets sold annually to the PNH-CSSR. The P-AGP estimated in June of 2022 that 10,500 tickets were sold, while the target was to reach 16,850. Both COVID-19 and the deteriorating security situation have negatively affected the tourist arrivals to the PNH-CSSR. During the height of the pandemic, international flights to Cap Haïtien were suspended as well as RCCL calls to Labadie. The cruise line resumed its visits to Labadie in early 2022 but suspended these again in October 2022. However, the assumption that cruise line tourists would be able to visit the PNH-CSSR and the monuments never became a reality, given logistical and security constraints. In addition, only a few international airlines, mainly budget carriers, have resumed flights into Cap Haïtien, which previously would have included major airlines, such as Delta, American Airlines, and United Airlines. 43. In addition to the outputs and outcomes mentioned, ISPAN’s documentation center was constructed, inaugurated by the Project, and is fully functional. This center has also received support from the Florida International University, in the form of computer equipment and software, and TA, which enhances the center’s ability to document and retain the work conducted under the Project related to the cultural heritage sites, in terms of studies and reports generated. 44. As detailed above, increasing the attractiveness of the cultural heritage sites as measured through these five indicators has only been partially achieved. The management capacity of the park was temporarily improved allowing for studies and plans to be prepared. However, this was not continued or formalized after the project closure. Despite this, there was inadequate implementation indicated by the lack of a substantial increase in ticket sales to the PNH-CSSR. The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 17 of 66 45. Despite partial and full achievements during project implementation under this outcome, the Project was not able to fully reach its development objective of increasing the attractiveness of the cultural heritage sites in North of Haiti for tourists. 46. The living environment for the residents living in the North of Haiti improved as result of the Project: 1) The Project is estimated to have directly benefitted 63,500 people, which is 181 percent over the target of 35,000. The estimate is based on the total urban population of Milot and Dondon, plus the population living on Rues 16 and 20 in Cap Haïtien, who would benefit from the upgraded public squares and the improved streetscapes. Thirty-five percent of the direct beneficiaries are estimated to be women, meeting the target. It was further estimated that 7,367 people benefitted from the Community Event & Tourism Development Grants. 2) In the target areas of Milot, Dondon, and Cap Haïtien, streetscapes totaling 2.7 kilometers were upgraded, which is more than the 150 meters envisaged by the Project. In total, 70 meters were upgraded in Milot; 1,200 meters on Rue 16; and 1,400 meters of Rue 20 in Cap Haïtien 2 . 3) It was estimated that 256 businesses (out of a target of 288) were providing cultural and tourism services, of which up to 47 benefitted from Community Event & Tourism Development Grants and improved upgraded urban infrastructure and facades. These include hotels and guesthouses, restaurants and enterprises providing other touristic and cultural services. Twenty-five percent of the beneficiaries were women and 25 percent were youth. Of these grants, 24 promoted handicrafts, cultural activities, or entertainment, such as music, theatre, and painting; 7 grants supported food processing, like manioc and chocolate, and Haitian cuisine; another 13 grants financed the upgrade and maintenance of tourist sites and destinations, while 3 grants supported transport and tour guides. Annex 8 provides a complete list of the 47 sub-projects financed by the Project. Due to COVID-19 and the reduced tourist arrivals, some of these businesses may have closed either temporarily or permanently. It was not possible to obtain updated information on the status of these businesses. 4) One touristic route was developed out of the two that were planned: The route from Sans-Souci to Choiseul was completed, and a tourist circuit that includes Rues 16 and 20 was proposed. 5) A 2022 survey by UTE3 found that 75 percent of the 1,728 respondents living in Milot, Dondon and Cap Haïtien were satisfied with the infrastructure that the Project has provided, in line with the target. Respondents identified contributions, such as the promotion of tourism in the North, projects that financed cultural activities, the rehabilitation of public squares in Milot and Dondon, and the strengthening of OGDNH, which according to one of the key informants created opportunities and jobs in the project areas. In addition, according to respondents, the Communal Consultation Tables, structures that already existed before the Project, have enabled better integration and representation of the population, particularly youth and women. 47. The Project rehabilitated Place de Milot, Place de Dondon, along with the improvement of Streets 16 and 21, and implemented the Community Fund, with a total of 47 subprojects being finalized. It was not able however to 2 See Annex 7 for photos of the urban upgrading carried out by the Project 3 Etude de ligne de base et de la situation actuelle du projet PAST, MEF, UTE, 2022 The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 18 of 66 advance on the solid waste activities. The Project mostly reach ed its development objective to improve the living environment for the residents in the North of Haiti. 48. The project provided the Recipient the capacity to respond promptly and effectively to an Eligible Emergency, as needed . This consisted of a CERC of US$1 million to support an eligible emergency response as needed and as a mechanism for rapid response in the event of an eligible emergency, subject to the request of the GoH. 49. There was no indicator developed for this PDO. It was therefore not possible to monitor its progress. Such components, which include triggers and conditions for the use of funds, were included in most investment projects in Haiti in keeping with the recommendations of the 2011 World Development Report on Conflict, Security, and Development and with the operational experience acquired in Haiti since the 2010 earthquake. 50. In 2017, following Hurricanes Irma and Maria, the consideration to trigger this Component took place, however, due to the minor impact of these hurricanes on the project area, it was decided not to activate the CERC. Similarly, during the COVID-19 pandemic and the 2021 earthquake, these funds were also not triggered, instead, funds for COVID-19 response were freed through the June 2020 restructuring. 51. Although there was a provision to reallocate these funds if not disbursed 24 months before the closing date, this was not initiated. The Project team decided to keep this contingency in case there would be a need to use it. There was also no need to finance activities under the other Project components. Overall, the availability of this contingent financing mechanism to be triggered in case of rapid response to an eligible emergency, supported the government’s capacity to respond promptly and effectively to the emergency. Justification of Overall Efficacy Rating 52. The Project partially achieved its Development Objectives, particularly in contributing to a better living environment for the population in the project area. However, not increasing the attractiveness of the cultural heritage sites for tourists carries more weight than the achievements made under the second part of the PDO. PDO 3 was not triggered, therefore has not been considered in the overall rating. The PDO achievement is therefore rated Modest. C. EFFICIENCY Assessment of Efficiency and Rating Economic Analysis 53. The Project’s ex-ante economic analysis was based on Component A only, with a cost of US$28 million. The estimation was an Economic Rate of Return (ERR) of 39 percent, and a Net Present Value (NPV) of US$18 million, considering conservative estimates of tourist inflows, their associated expenditures, a time horizon of 10 years (five years beyond the Project’s end), and a discount rate of 10 percent. External factors, such as the pandemic and the deteriorated security situation harmed tourist inflows, the principal factor used in the economic analysis. Component A’s budget was also reduced through several restructurings, from US$28 million to US$16.95 million, The World Bank Cultural Heritage Preservation and Tourism Sector Support Project (P144614) Page 19 of 66 with an estimated disbursement of 37 percent. Applying the same model, with the da ta available at the end of the Project, presents an ERR of plus one percent and the NPV is negative US$14.6 million. 54. The economic model used to evaluate the Project during appraisal has significant limitations. It is a financial cost- benefit analysis that relied on tourist arrivals and expenditure data. Overall tourist figures for 2015 were especially high, and therefore did not represent the underlying tendency, skewing the output of the model, which uses 2015 as a base year to calcul