GOVERNMENT OF THE STATE OF PERNAMBUCO

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized GOVERNMENT OF THE STATE OF PERNAMBUCO State Secretariat for Water Resources PERNAMBUCO SUSTAINABLE WATER PROJECT ENVIRONMENTAL ASSESSMENT EXECUTIVE SUMMARY DRAFT, May 2009 E2170 v3

2 ACRONYMS ANA APP COBH-Cabiparibe COMPESA CONAMA CPRH EMP IBGE IPA IPHAN MRR NGO PAC PER PSH-PE SRH WTP WWTP National Water Agency Protection Area Capibaribe Basin Committee Pernambuco State Water and Sanitation Utility National Commission for the Environment State Environment and Water Resources Agency Management Plan Brazilian Institute for Geography and Statistics Pernambuco Company for Agricultural Research National Institute of Historical and Artistic Heritage Metropolitan Region of Recife Non-Governamental Organization Federal Growth Acceleration Program Preliminary Report Pernambuco Sustainable Water Project State Secretariat for Water Resources Water Treatment Plant Wastewater Treatment Plant

3 PERNAMBUCO SUSTAINABLE WATER PROJECT FRAMEWORK FOR ENVIRONMENTAL AND SOCIAL MANAGEMENT INTRODUCTION GENERAL CHARACTERISTICS OF THE CAPIBARIBE BASIN LEGAL AND INSTITUTIONAL FRAMEWORK AND COMPARATIVE ANALYSIS WITH IRDB SAFEGUARD POLICIES ENVIRONMENTAL AND SOCIAL ASSESSMENT OF COUNTERPART WORKS ENVIRONMENTAL AND SOCIAL ASSESSMENT OF WORLD BANK FINANCED INTERVENTIONS E A S A OVERALL PROJECT EVALUATION ENVIRONMENTAL MANAGEMENT PLAN E M P C S C S E E P C T S C J P S S C WWTP S M I MRR C E T U E P R F E C M 8. PUBLIC CONSULTATIONS...2 6

4 1. INTRODUCTION 1. This Executive Summary of the Assessment Report on the Pernambuco Sustainable Water Project (PSH-PE) presents the project s main potential environmental and social impacts and proposed mitigation measures as succinctly and objectively as possible. 2. A comprehensive Assessment (EA) was undertaken during the preparation of the PSH-PE; the EA evaluates existing conditions, identifies potential direct and indirect environmental impacts, and proposes measures to mitigate negative impacts and enhance positive impacts. The Management Plan (EMP) summarizes these measures along with their associated costs, responsibilities, and schedule, and comprises an Construction Manual. Public consultations were carried out and documented following the disclosure procedures recommended by the Bank s environmental policy. 3. A Social Analysis was undertaken in conjunction with the Assessment, and a Resettlement Policy Framework has also been prepared. Project documentation is available at the office of the State Secretariat for Water Resources SRH, Government of Pernambuco, Av. Cruz de Cabugá 111, Recife PE, Brazil, and safeguard studies were made available at the InfoShop on May 29, The and Social Assessments of the PSR-PE were commissioned by the State Secretariat for Water Resources (SRH), and prepared by the consultant Alexandre Fortes. 4. The proposed Project will be supported by a World Bank specific investment loan (SIL) in the amount of US$190 million. The project development objective is to improve sustainable water supply and sanitation services in the Capibaribe river basin and in the Metropolitan Region of Recife (MRR) both in appropriate quality and quantity. The PSE-PE will support the Government of Pernambuco s goal of achieving sustainable economic growth and social development, for which a reliable and efficient management of water resources, as well as adequate irrigation, water supply and sanitation service provision are critical. The project gives priority to investments in the Capibaribe river basin (the main river under State jurisdiction) and in the MRR (42% of the state population and 65% of the State GDP), aiming to provide efficient water supply services and to implement wastewater collection and treatment services, to protect the main water reservoirs targeted for human consumption. 5. Within the scope of designing the PSH-PE, SRH has requested the World Bank to consider the possibility of recognizing some of the sector interventions currently underway as State counterpart contributions under the future loan contract, particularly the works of the Pirapama water supply conveyance system, estimated to cost US$220 million, and currently under construction with resources from state government and from the Federal Growth Acceleration Program (PAC). 6. The project s concept includes strengthening state water resources management, as well as improving water and sanitation management efficiency and infrastructure, with funding from two sources: (i) ongoing State counterpart civil works funded by the PAC; (ii) World Bankfinanced civil works to improve the efficiency of existing water supply systems and to install wastewater systems in selected municipalities in the Capibaribe river basin, for which typologies have been defined. 1

5 7. Thus, this report focuses on two distinct sets of documents and works that integrate this project: (i) the social and environmental assessment of works currently under implementation with 100% financing from counterpart funds; and (ii) a framework for environmental and social management of future works to be implemented under the project with financing from the World Bank, including the environmental assessment of subproject typologies and the setting of criteria and procedures for the environmental assessment of subprojects in the project implementation phase. The proposed PSH-PE Project is structured in three components: 8. Component 1 Water Sector Management and Institutional Development (US$29 million). This component covers the strengthening of institutions and the development of an efficient water resource management model, and supports: (i) integrated water resource management, (ii) water services and infrastructure; and (iii) project management. 9. Component 2 Improving Efficiency in the Provision of Water Supply and Sanitation Services (US$52 million). This component will support: (i) non-revenue water, which will support activities aimed at reducing technical and commercial water losses and improving COMPESA s services, sales and operational efficiency in the MRR, and (ii) the implementation of a corporate development program with focus on activities that can improve COMPESA s financial equilibrium, overall customer satisfaction, staff productivity as well as corporate organization and management. 10. Component 3 Water Supply and Sanitation Service Expansion (US$320 million). This component is divided into the following sub-components: (a) Pirapama Water Supply System Sub-component, which will support technical assistance and acquisition of goods and works targeted towards increasing water supply availability and reliability in the MRR, and includes the on-going expansion and integration of the Pirapama water supply conveyance system.; and (b) Expansion of services Sub-component, which will finance technical assistance, acquisition of goods and works to expand services and leverage investments in priority areas. This sub-component will support the Government of Pernambuco to protect the main sources of water in the Capibaribe river basin by targeting areas where new sewage collection and treatment services would significantly contribute to the reduction of pollution loads particularly from the municipalities of Vitória de Santo Antão, Salgadinho, Limoeiro, Paudalho and Toritama. This sub-component will also finance technical assistance to support to the Government of Pernambuco in the prioritization of water supply and sewerage investments, as well as in the preparation of regional and municipal water master plans and detailed engineering designs for priority projects. 2. GENERAL CHARACTERISTICS OF THE CAPIBARIBE BASIN 11. The Capibaribe Basin comprises 43 municipalities. According to the Brazilian Institute for Geography and Statistics (IBGE), in the year 2000 this group of municipalities had a population of about 3.5 million inhabitants, which represents about 43% of the population of the State, 87% of which live in urban areas, mostly in the MRR 1 on the Lower Capibaribe. T MRR C I J B 2

6 12. The main districts of twenty seven municipalities are located within the basin, 19 of which are located upstream of the basin s main reservoirs. Four of those municipalities are located along the banks of the main river (Santa Cruz do Capibaribe, Toritama, Surubim and Limoeiro) and two along the banks of the Tapacurá river (Vitória de Santo Antão and Pombos). 13. The main water supply reservoirs in the basin are: The Jucazinho Reservoir The Jucazinho reservoir, inaugurated in 1999, has a maximum capacity of million cubic meters, and is used mainly for flood control purposes. Jucazinho currently supplies the cities of Casinhas, Frei Miguelinho, Salgadinho, Santa Maria do Cambuca, Surubim, Cheus, Vertente do Lerio, Vertentes, Caruaru, Cumaru, Passira and Riacho das Almas, serving a population of about 353,000 inhabitants. The Carpina Reservoir The Carpina and the Jucazinho reservoirs, together, constitute the flood control system of the upper-mid and mid-capibaribe river. Initially the main purpose of the Carpina dam, inaugurated in 1978, was the control of downstream flooding. In 2003, COMPESA started using the Carpina reservoir for water supply to the municipality of Feira Nova, with a population of about 15,500 inhabitants. A pipeline from this reservoir to the Glória do Goitá and Limoeiro systems is currently under construction. The Tapacurá Reservoir This reservoir was built in 1973 in the municipality of São Lourenço da Mata, with the purpose of supplying water to the municipalities of Camaragibe, Jaboatão dos Guararapes, Recife and São Lourenço da Mata, and enabling flood control on the Lower Capibaribe. The reservoir supplies water to the population of the following cities: Camaragibe (170,000 inhabitants) and part of the cities of Recife (900,000 inhabitants), Jaboatão (150,000 inhabitants) and São Lourenço (23,195 inhabitants) (Source: Compesa, 2008). 14. These reservoirs currently are in a stage of hyper-eutrophication due to the flourishing of algae and the presence of cyanobacteria, mostly as the consequence of the current total absence of wastewater treatment in municipalities located upstream in the drainage basin. 15. Of the 19 municipalities located upstream from the reservoirs, only Vitória do Santo Antão counts with a partial wastewater collection system (without treatment). In all other cities, especially the six that are located along the banks of the Capibaribe and Tapacurá rivers, wastewater drains into the water bodies, without any treatment. 3

7 The Capibaribe River Basin 3. LEGAL AND INSTITUTIONAL FRAMEWORK AND COMPARATIVE ANALYSIS WITH IBRD SAFEGUARD POLICIES 16. The assessment of the PSH-PE components was designed so as to simultaneously consider: (i) compliance with World Bank environmental safeguard policies, as a condition for the signature of the Loan Agreement; and (ii) strict compliance with and attention to federal, state and municipal legal requirements, especially with regard to rules and procedures for the environmental licensing of the actions foreseen under the Project. 17. During project preparation, infrastructure interventions have been grouped into two sets: (i) state counterpart interventions associated to works being built with financing from the federal Growth Acceleration Program (PAC); and (ii) the World Bank-funded works aimed at improving the efficiency of existing water supply systems and the implementation of wastewater systems in selected municipalities in the Capibaribe river basin. 18. For the second set of interventions, neither conceptual nor detailed engineering designs are available at this stage. Hence, this report had taken a dual approach to assess the project: (i) and social assessment of the counterpart works under execution the Pirapama water supply system; and (ii) Design of an and Social Management Framework, involving the environmental and social assessment of the typologies of wastewater subprojects and the definition of criteria and procedures for the environmental and social assessment of subprojects during the implementation of the PSH-PE. 19. Within the scope of the World Bank s safeguard policies, the proposed project is classified as category A. As such, this report evaluates with- and without-project scenarios, 4

8 identifies potential direct and indirect environmental impacts associated with the project and other alternatives, develops mechanisms and measures to avoid, minimize and/or mitigate negative impacts, and presents an Management Plan with specific activities, budgets and responsibilities to ensure the implementation of these mitigating measures. 20. The following safeguard policies are triggered: (i) OP 4.01 assessment (ii) OP 4.04 Natural Habitat (iii) OP 4.36 Forests (iv) OP 4.12 Involuntary Resettlement (v) OP 4.11 Physical and Cultural Resources (vi) OP 4.37 Safety of Dams (for the counterpart works) Licensing for Project Interventions 21. PSH-PE interventions will be the object of environmental licensing according to the relevant applicable environmental legislation at the federal and the state levels. For example, each intervention for the implementation of basic sanitation systems, as determined by the environmental legislation, shall fulfill a specific environmental licensing practice, complying with document, process and timeframe requirements associated to the rules and procedures established by the licensing body the State Agency for Environment and Water Resources (Agência Estadual de Meio Ambiente e Recursos Hídricos CPRH). 22. As for the wastewater systems, the CPRH licensing process requires the presentation of a Preliminary Report (PER). In addition, the terms of CONAMA Resolution 377/06 on the adoption of simplified licensing procedures for the development of medium and small wastewater systems (which covers most PSH-PE interventions) must be taken into account. Granting of water rights 23. The granting of water user rights is one of the water resource management instruments foreseen under Federal Law No of January 8, 1997, whereas the competence for managing and granting licenses lies with National Water Agency (ANA) in the case of federal rivers, and the Secretariat for Water Resources (SRH) in the case of rivers under state jurisdiction and underground aquifers. The granting of licenses is closely linked to the Water Resource Plans and the classification of water bodies. 4. ENVIRONMENTAL AND SOCIAL ASSESSMENT OF WORKS ALREADY UNDER IMPLEMENTATION WITH COUNTERPART FUNDS 24. The Pirapama water supply system aims to ensure regular public water supply to the MRR, particularly to the southern and central areas, the most populated ones, which represents about 50% of the overall system capacity that currently supply the municipalities of Recife, Jaboatão and Cabo de Santo Agostinho. 5

9 25. The works forthis system started in the late 1980 s and were suspended after a few years mostly due to lack of funds. Works for the Pirapama Dam which has the capacity to provide flows of 5.13 m 3 /s, were resumed in 2000 and completed in This is a gravity-type dam, with capacity for 61 million cubic meters of water, comprising: (i) one water intake provided by an underwater tower; (ii) one bottom discharge through 2-meter diameter steel pipes. 27. The Pirapama water supply system, using water from the Pirapama Dam, is made up by the following units, which are currently under construction (See outline Figure 5.1 below): 28. Intake Pumping Station, located next to the dam, receives water coming out of the intake located downstream from the dam through a 2-meter diameter pipe, with a pumping capacity of 5.13 m 3 /second up to the Water Treatment Plant WTP. It has six motor-pump sets with 1600 cv power, one of which acts as a reserve pump. 29. Bulk Water Main in 1,700 millimeter carbon steel pipes, that are 3,580 meters long. 30. Water Treatment Plant a complete conventional WTP initially designed with four 1.28 m 3 /s modules. The current WTP project will make use of the partially-built facilities, the works of which have been suspended as of Potable Water Main designed as a 1,700 millimeter pipe, with a length of about 19,500 meters. This pipeline is located mostly within the area of domain of BR-101, a federal highway. 32. Cabo de Santo Agostinho Sub-main, with 800 millimeter pipe connecting the pipeline to the existing Cabo reservoir, currently being expanded. 33. Ponte dos Carvalhos Sub-main, with 800 millimeter pipe connecting the pipeline to the existing Ponte dos Carvalhos reservoir, currently being expanded. 34. Expansion of the Cabo and Ponte dos Carvalhos Service Reservoirs for a capacity of 13,500 m 3 and 17,000 m 3, respectively. 35. Construction of the Jordão Service Reservoir, a type supported with capacity for 90,000 m An environmental and social analysis of the existing and under construction works for the Pirapama water supply system was carried out, including on-site inspections, and the main findings are the following: 6

10 OP 4.01 Assessment 37. An environmental assessment was undertaken in the first phase of the implementation of Pirapama works, with the preparation of an Impact Assessment of the Pirapama dam in 1989 by COMPESA and a consulting firm named Aquaplan. In 2001, the Pirapama water production system was assessed in a preliminary environmental report undertaken by the consortium HagaConsult. 38. All of the construction works already received the corresponding Installation License (IL) issued by the State Environment and Water Resources Agency (CPRH) and the Water Rights have been granted by SRH. 39. The environmental license conditionalities to be met regarding mitigation and compensatory measures, have already been included in the PAC financing package and are being executed by COMPESA. Such measures amount to R$4 million, as shown on the table below. Table 1 Compensation Resources ITEM COMPENSATION ACTIONS AMOUNT (R$) 1 Detailed technical design of compensation measures 50, Demarcation with landmarks of the permanent preservation strip (100 m) around the reservoir 160, Reforestation of 120 hectares per year around the lake, totaling 360 hectares, in the environmental protection area (APP) 3,200, Rehabilitation of areas used for pit disposal of excavated material. 450, Compensating vegetation suppressed from raw water systems and treated water main 50, Monitoring of water quality 90, TOTAL 4,000,

11 40. Items 1 to 4 in Table 1 above refer to the implementation of complementary environmental measures related to the construction of the Pirapama dam and reservoir, concluded in Main measures include (i) the demarcation of the 100-meter environmental protection area (APP) surrounding the reservoir s banks, and (ii) reforestation of about 360 hectares in that area, which is already owned by COMPESA. 41. The current implementation of works counts with an informal environmental management system that includes environmentally sound construction procedures. SRH and COMPESA currently are negotiating with the construction consortium the adoption of the procedures stated in the construction environment manual, especially items regarding: (i) Formalization of environmental management/oversight actions; (ii) Social communication actions for the works, with communications and ombudsman services. (iii) Inclusion of recuperation actions in the work area; and (iv) Inclusion of recuperation actions in the areas used for disposal of excavated material. Overall Impacts 42. The Pirapama water system integrates a set of water production systems for the MRR and, once implemented, will represent an estimated additional 50% of the water availability for the population. In general terms, the positive impacts of its implementation are highly significant. Once the water production system is in operation, it is expected that the result of the interventions will be highly positive and permanent, ensuring the adequate supply of water and a significant improvement in the quality of life of the population living in the MRR. 43. Negative impacts, on the other hand, are localized, reversible and temporary, deriving mostly from activities that are inherent to the execution of the works and can be minimized through the adoption of preventive measures, contemplating the appropriate planning of interventions and appropriate procedures during its execution. 44. Some of these measures are being adopted during the preparation of detailed designs of the interventions, which aim to avoid occupied areas and preserved natural environments. COMPESA and the technical-environmental team of the works contractor normally carry out regular environmental monitoring of works execution. Actions aimed at strengthening these procedures, as detailed in the environmental construction manual, are being adopted by SRH and COMPESA. 45. With regard to the Bank s environmental safeguards, the adoption of additional measures by COMPESA and SRH, the scheduled interventions and the actions adopted within the scope of counterpart interventions, are in line with the procedures recommended by the World Bank. OP 4.04 Natural Habitats 46. Most areas used for implementing these works are anthropized, with low population density. The location of interventions were conceptualized with the goal of avoiding as much as possible affecting natural areas with vegetation and does not interfere with areas of conservation. 8

12 47. On the stretches of the conveyance system, the interventions will need to suppress 3 hectares of secondary forest vegetation, including a stretch of an environment preservation area (APP) along the Jaboatão River. The appropriate authorization has already been issued by CPRH and compensation measures established by the environmental agency are being implemented. OP 4.12 Involuntary Resettlement 48. The construction of the Pirapama water supply system, which is under execution with financing provided by the government and constitutes the project counterpart financing, has affected 294 families, including 202 families that had to be moved to other locations and 92 processes of land acquisition. The resettlement of families was required for the construction of the Jordão elevated water storage facility, as well as for the expansion of the main water distribution system. The land acquisition was required also to expand the main water transportation system. The table below presents the resettlement and land acquisition undertaken. Pirapama System Number of families resettled Number of parcels of land acquired Elevated water reservoir - Jordão Water main transportation network Elevated water reservoir Ponte de Carvalho 1 - Total When the construction of the Pirapama system was interrupted in the mid to late 1990s, several families informally occupied the areas that were allocated to the construction of this system and were formally owned by COMPESA. Once the construction restarted, COMPESA reassessed the engineering designs aiming at reducing the number of houses requiring removal from the project areas. The updated designs were able to reduce the number of houses requiring removal, but still entailed the removal of 202 houses and the acquisition of 92 parcels of land. 50. In order to undertake the removal of housing, COMPESA opted for designing and implementing a broader social program, which would assist the families living in these houses to take this opportunity to also improve their living conditions. The main principle supporting this program was one of offering a very favorable financial compensation for the families assets, which would allow these families to purchase a house of higher value and better quality. Integrated with this financial mechanism, the social team of COMPESA put in place a social program to assist the families in the removal process. COMPESA also contracted additional social workers to cope with the increased demand for social assistance. 51. The main principles of the social and resettlement programs were: (i) qualified social professionals should provide support to the families during the removal process; (ii) the asset valuation criteria should allow the families to purchase a new house of better quality than the house they currently lived in; (iii) the process of resettling the families should allow them to take informed decisions and to voice their concerns; and (iv) safety measures should be in place to protect the families once they receive the financial compensation for their houses. 52. The socio-economic profile of the families assisted are as follows: (i) The average income of the 202 families assisted is among the lowest within the metropolitan area. (ii) Formal unemployment is extremely high, reaching 43% of the active adults. 9

13 (iii) For the unemployed, the informal sector is the only possible alternative for some income generation. (iv) Among those with regular employment, 10% are retirees. (v) Among those employed, unskilled labor prevail. (vi) The average income corresponds to one minimum salary (about US$160/month). (vii) The lack of appropriate infrastructure services further deteriorates the quality of life in the area. (viii) There is no formal water or sewerage service. (ix) Water is collected from public taps and improperly stored. 53. Asset valuation criteria: The method adopted for assessing the value of the assets ensured that the financial compensation amount would allow each family to choose to move to a house of better quality. As a preliminary evaluation indicated that a large percentage of those houses requiring removal had an extremely low market value, COMPESA opted for a increasing the value by adding the amount equivalent to a 12-month rental in the area. 54. The valuation method took into consideration the type of construction, the structures status of conservation, and number of inhabitants, among others, in order to arrive at a valuation consistent to market values and allow for the families to purchase another property to move into. The calculations were done according to local civil construction guidelines, and the value paid varied between R$120 to R$150 per square meter. The valuation also included the potential value of fruit trees and existing constructions within the lot occupied. Assessments carried out in the area indicated that this mechanism would allow the families to afford a house of good quality. The compensation value varied from about US$2,500 to US$11,000. In addition, the families also received compensation to cover the expenses related to the process of moving to a new house. 55. Social support methodology: In early 2008, before the works of the Pirapama Water Supply system re-started, COMPESA s social team, strengthened by the hiring of additional social workers, carried out meetings with the families to discuss the resettlement objectives and criteria. Regular meetings were held since the preliminary information campaigns until the effective compensation for the families assets. The methodology included the elaboration of a cadastre per family, in which the assets were evaluated and discussed with the family and detailed information and pictures were included. The constant presence of the social team in the area facilitated the interlocution with the families and the provision of timely clarification. 56. Based on the consultations carried out, one important procedure was adopted regarding precautions needed when the family was to receive the compensation. The families indicated that they would like to be closely assisted at this specific moment because of fear of being robbed. This assistance was provided, as well as information on available houses in the neighborhood for those that requested such information. The high rate of crime and violence in the area was taken into account, and strongly influenced the methodology adopted for the social support. A sample of the questionnaire used is in the project files. 57. Monitoring: Monitoring campaigns to evaluate the living conditions of those resettled have been carried out as part of the social methodology. This monitoring includes surveying affected families to capture information on their current living conditions. The results indicate that the living conditions have improved significantly with respect to the quality of the houses. 10

14 The cadastre and picture of the original houses compared to the new houses clearly demonstrate the improvements achieved. Many families have opted to buy a new house in the same neighborhood and they were able to choose a better location and house standard. Other families opted for returning to their city of origin or moving to another city. Those have not been covered by the post resettlement monitoring. Land acquisition 58. The land acquisition program undertaken in 92 areas does not prevent the families from using the affected areas. The families received financial compensation in case the area was being used for activities such as agriculture. Once the construction is concluded, the families will be allowed to use the area again. Some restrictions may apply to protect the pipes installed underground. One example of these restrictions is that no large tree with deep roots can be planted in the right-of-way. With exception of one case, the land acquired constitutes just one portion of the total area formally or informally owned by the family. The exception case refers to one producer that was growing bananas along the one kilometer of right-of-way, which is being used by COMPESA, but formally belongs to the state energy company. This producer has received approximately US$70,000 in financial compensation and has legally bought some land where he is developing a farm. This approach for restoration of livelihoods is consistent with OP 4.12 as COMPESA has to a significant extent pursued options to minimize involuntary resettlement and an adequate participatory process was followed for the implementation of compensatory measures that ensured adequate compensation for the land acquired. 59. Additionally, the production system comprises a stretch of the main connecting the Jordão reservoir to the Recife water network (Alça dos Anéis de Recife) (see figure). The detailed designs are currently being prepared and the works are likely to start in May This stretch also includes several illegal occupations, but with different characteristics from those on the areas under construction. These are areas of public and private domain and do not fit into OP 4.12, article 15 c. COMPESA estimates are that 100 to 120 families will need to be resettled. For this purpose, COMPESA is preparing a Resettlement Plan in accordance with OP 4.12 requirements. OP 4.11 Physical and Cultural Resources 60. According to the Pirapama water supply system s preliminary environmental report, the location of construction activities avoided historical and cultural sites. OP 4.37 Safety of Dams 61. Works for the Pirapama dam were concluded in late 2000, and the reservoir was filled up in The construction of the dam and the reservoir were subject to detailed environmental impact assessment and report, commissioned by COMPESA and prepared by the consulting firm Acquaplan in All required environmental licenses were issued by the State Environment Agency CPRH and the water rights were granted by SRH. Since 2008, the Pirapama reservoir is providing an average of 1.0 m 3 /s of bulk water to increase de production of the Gurjaú water system. The dam has been in operation since 2001 with no reported safety incidents. However, considering that the Pirapama dam is about 20 meters high and a significant withdrawal is expected to start on October 2010, the dam will be evaluated by an Independent Dam Safety 11

15 Panel, to be commissioned by SRH prior to the beginning of any works related to the Pirapama water system, that are to be financed with loan proceeds, particularly the non-revenue water investment activities under Component ENVIRONMENTAL AND SOCIAL ASSESSMENT OF FUTURE WORLD BANK- FINANCED INTERVENTIONS 5.1 Assessment of typologies 62. An and Social Management Framework was prepared for the various subproject typologies that involve physical interventions and that will be financed by the PSH-PE under components 2 and 3. Such interventions are analyzed in the tables below, at the conceptual level. Component 2 Improving Efficiency in the Provision of Water Supply and Sanitation Services Activities Actions Proposed Interventions Non-Revenue Water Sectorization, pressure management and network renewal works Installation of telemetric and macro-metering devices Sectorization of networks with substitution of pipes and repair of reservoirs, etc. Implementation of flow and pressure control in water networks and reservoirs Substitution of networks and renovation of pipes, reservoirs, etc. 63. In general terms, the non-revenue water activities foresee small interventions in existing systems and will have no additional interference with the natural environment. According to federal and state environmental legislation, the actions and interventions above are not subject to environmental licensing. 64. The positive impacts, on the other hand, have a more permanent nature and will mostly occur during the operation stage. The table below presents the main impacts (positive and negative) of this type of intervention and its significance, as well as mitigation measures for the negative impacts and the corresponding environmental programs that will be part of the Management Plan of the overall project, as well as of each selected intervention. 65. As shown in the table below, negative impacts are localized, transitory and of reduced relevance, deriving mostly from activities related to the works. The mitigation of such impacts comprise, mostly, of appropriate care during the execution of the works, involving good engineering practices. During the operation stage of the interventions, most impacts are positive, relevant and permanent. It features a strong positive environmental bias by trying to reduce the consumption of treated water, either by reducing losses and/or promoting its rational use, thus reducing the volume to be adducted and making water available for other uses. 12

16 Component 2 Positive and Negative Impacts, Mitigation Measures and Programs Positive Impacts Planning and Construction Phase Strengthening community-based mobilization Employment generation and increased income for the local population Operation Phase Improved sanitary conditions Improved health conditions for the population Improved housing standards Enhancing self-esteem among the population Consolidation of new cultural and environmental approaches Negative Impacts Planning and Construction Phase Generating expectations and insecurity among the population Alterations in the quality of life of the resident population in areas located close to the construction sites (increased noise, dust and traffic; closing of access roads; circulation of people that are foreign to the community, etc.) Interference upon existing urban infrastructure and equipment Suppression of vegetation Generation of sediments Deterioration of environmental, urban and landscape conditions Generating waste pit disposal areas Accidents risks Relatively insignificant Moderate Relatively insignificant Relatively insignificant Relatively insignificant Relatively insignificant Relatively insignificant Relatively insignificant Mitigation Measures Actions for dissemination of project information and social communication Planning of works and appropriate construction procedures Coordination with service concessionaires and responsible agencies Appropriate construction methods and recuperation of the affected vegetation Appropriate construction planning and methods Planning of works and appropriate construction methods Disposal of waste in properly licensed areas Planning of works and safety procedures Moderate Moderate Significant Significant Significant Significant Significant Programs Social communication Construction Manual Construction Manual Construction Manual Project criteria Construction Manual Construction Manual Construction Manual Construction Manual 13

17 Component 3 Water Supply and Sanitation Service Expansion Subcomponent Actions Interventions Proposed Services Expansion Full implementation of the wastewater system, including wastewater treatment plants Expansion of infrastructure of existing wastewater systems Implementation of collection system (household sewer, networks and trunk sewers) Implementation of transportation system (interceptors, booster stations and pumping lines) Implementation of Wastewater Treatment Plan - WWTP Expansion of collection sewer networks Expansion of trunk sewers and interceptors Implementation of booster stations Expansion and/or implementation of WWTP 66. The table below presents the main positive and negative impacts of the typologies highlighted above and their relevance, as well as mitigation measures for negative impacts and the corresponding environmental programs to be included in the PSH-PE Management Plan and for each selected development. The table shows that most negative impacts are localized, temporary and of reduced or moderate significance, deriving, mostly, from activities associated to the execution of the works. 67. Appropriate concept and design criteria can greatly minimize the occurrence of such interferences. In the case of natural habitats, the expansion or implementation of wastewater systems (interceptors, pumping stations and treatment stations) almost always present interferences with APPs. Considered by the legislation as public use interventions, such interferences may be authorized by the environmental agency and minimized through the use of appropriate construction techniques and the later recuperation of the area where the intervention took place. 68. There are a few conservation units in the Capibaribe river basin but they do not overlap with the any of the five municipalities selected to benefit from wastewater system to be financed by the Project. 69. The possibility of interfering with cultural heritage sites will be analyzed during the design of works and respective environmental assessments so as to adopt recovery procedures or, as the case may be, by implementing chance-find procedures, as regulated by the National Institute of Historical and Artistic Heritage - IPHAN. 70. The project design and its execution should avoid any possibility of interference with commercial activities. Likewise, the project development should avoid the need to resettle families. In case there is a need to displace families, a specific plan must be designed, in compliance with the Resettlement Framework stated under the PSH-PE Management Plan EMP. 71. Additionally, the project design must consider alternatives for the location of WWTPs in relation to the urban area. Such alternatives must take into account predominant winds and a minimum distance of 500 meters from homes and/or planned urban areas. In case that is not feasible, the WWTP design must foresee a minimum distance of 100 meters from edifications and the appropriate treatment of gases with the elimination of odors. 14

18 Positive and Negative Impacts, Mitigation Measures and Programs for Component 3 Positive Impacts Negative Impacts Mitigation Measures Planning and Construction Phase Strengthening of community mobilization Generation of employment opportunities and increase in income for local population Operational Phase Improvement in sanitary conditions Improved quality of water of the recipient body Attraction of investments to the region Improving environmental and urban conditions in the region Consolidation of new cultural and environmental approaches Improved quality of life for the population Expansion of water availability Enhancing self-esteem among the population Moderate Moderate Significant Significant Significant Significant Significant Significant Significant Significant Planning and Construction Phase Generating expectations and insecurity among the population Alterations in the quality of life of the resident population in areas located close to the construction sites Interference upon existing urban infrastructure and equipment Eventual losses to local businesses Interference in Permanent Preservation Areas - APPs Interference in Conservation Units Suppression of vegetation Interference with cultural and archeological heritage sites Generation of sediments Use of areas for disposal of excavated material. Generating waste pit disposal areas Risk of accidents Increased traffic of heavy machinery in the region Moderate Moderate Relatively insignificant Relatively insignificant Moderate Relatively insignificant Relatively insignificant Relatively insignificant Relatively insignificant Moderate Moderate Relatively insignificant Relatively insignificant Actions for the divulging of the project and social communication Planning of works and appropriate construction procedures Coordination with service concessionaires and responsible agencies Construction Manual and social communication Project criteria Construction Manual Feasibility studies and engineering design must avoid interference Construction Manual Adoption of reporting and chance finding procedures Construction Manual and monitoring Use of licensed mines and recuperation of degraded areas Disposal of waste in properly licensed areas and reconstitution of areas used Planning of works and safety procedures Proper planning of works Programs Proposed in EMP Social communication Construction Manual Construction Manual Construction Manual and social communication Project criteria Construction Manual Criteria for Feasibility Studies and engineering design Construction Manual Construction Manual Construction Manual and monitoring Construction Manual Construction Manual Construction Manual Construction Manual 15

19 Enhancing value of land Positive Impacts Negative Impacts Mitigation Measures Moderate Possibility of displacement and resettlement of families Operation Phase Generation of odor by WWTP Generation of sludge by WWTP Moderate Moderate Moderate Resettlement framework Appropriate location for WWTP and/or providing for treatment of gases Appropriate treatment and final disposal Programs Proposed in EMP Project criteria Resettlement policy Monitoring Monitoring 16

20 72. The WWTP expansion or implementation design must include the assessment, treatment and final destination of sludge, its treatment and final destination, both currently and in the future. All project criteria must be stated in the PSH-PE Management Plan EMP. 73. With regards to the operation stage, the majority of impacts at that stage are positive, relevant and permanent. It also features a strong environmental bias by attempting to improve the quality of water streams, leading to an improvement of water availability in the intervention area and in associated ecological conditions (aquatic fauna and flora), thus allowing for the sustainable use of water resources. 5.2 Social Analysis 74. The main characteristics of the municipalities in the Capibaribe river basin have been analyzed, as well as social indicators for eight municipalities located along the main river course and its main affluent, the Tapacurá river. In general terms, the analysis performed allows for the following considerations: (i) (ii) (iii) (iv) (v) (vi) (vii) The Capibaribe river basin concentrates a major part of the population of the State. The average per capita income of the area s population, in the year 2000, was of about 0.7 minimum wages, whereas 59% of the people lived with less than ¼ of a minimum wage per month on average in these municipalities. The average child mortality rate (up to five years of age) in these municipalities is considered high (60 per 1,000) if compared with the state average of 54 per 1,000 and the nation-wide average of 39 per 1,000. The municipalities that have been selected for implementation of wastewater systems feature a population with high social vulnerability and major deficits in sanitation services, without any wastewater collection or treatment systems. There is a high demand for improving environmental health conditions for the low income population, thus reducing their social vulnerability. The low income population will benefit from the social tariffs adopted by COMPESA, which provides subsidies of up to 60% to those paying the minimum tariff. The PSH-PE foresees the implementation of intra-household sewers for the low income population which, together with the subsidies above, will allow for the connection of this population to the new systems. 6. OVERALL PROJECT EVALUATION 75. From a more encompassing and strategic point of view, the set of proposed actions to be funded by the PSH-PE will positively affect a series of policies, plans and programs at the regional and metropolitan levels. They mostly address water conservation issues by considering both quality recuperation which includes interventions for the de-pollution of rivers and springs and quantity conservation interventions, through the control of losses in water supply systems. The whole set of interventions, in general terms, is expected to act as the inducer for actions and strategies associated to the water resources and sanitation plans (watershed plans, 17

21 state and municipal sanitation plans, etc.), thus contributing to the strengthening of sector management tools. POSITIVE EFFECTS a) Improvement in the Quality of Water and the Environment 76. The treatment of causal factors such as the withdrawal of affluent loads to the Capibaribe river and its affluent rivers through the implementation of wastewater systems with the appropriate treatment of effluents is a key element to enabling a sizable improvement to the quality of water, thus leading to an effective reduction of expenditures with chemicals, and improving the water availability (in both quantity and quality), with direct effects upon the quality of life of the population residing in the region covered by the PSH-PE. 77. The recovery of water supply reservoirs also will provide for additional gains in environmental quality, enhancing health conditions and the balance of natural phenomena, maintaining aquatic life and the associated ecological processes (aquatic fauna and flora), thus allowing for the sustainable use of water resources in the Capibaribe river basin. b) Improvement of the Infrastructure Network 78. The PSH-PE is in line with the Millennium Development Goals, through the improvement and expansion of water supply and sanitation infrastructure and services in highly populated areas, which is the case of the Capibaribe river basin. As such improvements under the proposed project, therefore, are evident and absolutely focused on the global improvement of health, environmental and urban development indicators. c) Improvement of the Quality of Life of the Population and of Socio-economic Indicators 79. The process of construction of the proposed infrastructure promotes gains in terms of access to adequate public sanitation services, expanding the possibilities for access to wastewater systems, with direct impact upon the health of the beneficiary population. In addition, the poor will also benefit from the social tariffs adopted by COMPESA, which provide subsidies of up to 60% to those paying the minimum tariff, and also subsidizes the implementation of intrahousehold sewers. d) Attracting investments and private capital, thus enhancing the competitiveness of these regions, in comparison to other urban centers 80. Enhanced water availability in the Capibaribe river basin can further promote and attract business activities and capital, thus strengthening the regional network of businesses, services, trade, etc., promoting the region s economic and environmental sustainability. It should ne noted that the industrial textile hub in Toritama may also benefit from the development of industrial reuse of treated wastewater, which will allow for reduced costs of industrial water. e) Consolidation of strategies for regional sustainable development and the protection of springs 81. The de-pollution of water courses in association with greater local and regional water availability complies with the requirements and guidelines established by national, state and regional environmental and water resource policies. In general terms, that represents a major 18

22 progress towards the much-desired economic, social, environmental and institutional sustainability. NEGATIVE EFFECTS 82. There are no relevant negative effects identified as the consequence of implementing this Project at the regional level. The main negative impacts refer to the local level, deriving mostly from actions related to the execution of the works and that can be mitigated through the adoption of appropriate project design and execution criteria and procedures. For that end, the adoption of criteria for the design and environmental assessment of planned interventions is foreseen, as well as the adoption of a Construction Environment Manual. 83. As mentioned earlier, the PSH-PE is an initiative that is closely linked to environmental recuperation and to improving the quality of life of the population of the Capibaribe watershed. Therefore, it is a set of actions and measures that aim to mitigate, minimize or compensate the existing socio-economic impacts, as well as to avoid new critical or negative situations, capable of jeopardizing the sustainability of this environmentally sensitive region. 84. Even though the Program initially did not foresee investments in developments that may require involuntary resettlement, the program must contemplate a conceptual framework that may take into account the adoption of appropriate technical and socio-economic actions, if necessary. 7. ENVIRONMENTAL MANAGEMENT PLAN 85. The PSH-PE Management Plan EMP contemplates a set of actions and interventions aimed at ensuring the improvement of water resources in the Capibaribe river basin and at preventing, minimizing and compensating environmental and social impacts caused by project works and/or activities. Those interventions have a cost estimate of US$5.4 million. The EMP is organized into environmental and social policies and programs, a summary of which is presented below. The table also indicates the costs which are included in the project s financing, as well as the institution accountable for each one of them. Programs Project Management Criteria and procedures for the environmental assessment of projects Social communication and sanitary and environmental education program Adhesion campaign and program for the elimination of storm water infiltration into sewerage connections and of illegal sewer connection into storm water systems Costs (US$) Included in Project Management Costs Included in Project Management Responsible Agency or Body UGP & COMPESA UGP 156,000 COMPESA Included in construction costs COMPESA Compensatory measures program 510,000 SRH/CPRH Study on quality of water and alternatives for overcoming the eutrophication of the Jucazinho, Tapacurá and Carpina reservoirs. 120,000 SRH 19