INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized I. Basic Information Date prepared/updated: 07/07/2006 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE Report No.: AC Basic Project Data Country: Bolivia Project ID: P Project Name: Bolivia Urban Infrastructure Project Task Team Leader: Alexandra Ortiz Estimated Appraisal Date: April 24, 2006 Estimated Board Date: September 7, 2006 Managing Unit: LCSFW Lending Instrument: Specific Investment Loan Sector: Flood protection (35%);Sewerage (35%);Sanitation (30%) Theme: Other urban development (P);Pollution management and environmental health (S) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT Environmental Category: B - Partial Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) [ ] No [ ] 2. Project Objectives The Project Development Objective is to improve the access to basic services to the urban poor in Bolivia?s major cities through targeted infrastructure investments and the provision of technical assistance to municipalities in the planning, expansion and sustainability of urban service delivery. Specific Project Objectives are: i) to achieve sustainable improvements in the urban infrastructure and living standards in the poorest neighborhoods of La Paz through comprehensive urban upgrading and neighborhood participation in project implementation; ii) to enhance mobility in the city of El Alto, removing infrastructure bottlenecks and introducing measures to modernize public transport services and urban transport management; iii) to expand sewerage coverage in poor areas of Santa Cruz de la Sierra. Although the project covers three separate urban areas and three different infrastructure sub-sectors there is a common framework to the intervention. First, as reflected in the project?s objectives, Bolivia?s major cities are committed to developing sustainable urban growth policies. The current project will therefore be particularly instrumental in building a long-term relationship between the Bank and the municipal governments of

2 these cities. Second, the infrastructure investments in the three cities have been targeted by sector and geographical area according to these cities? most vital needs, given that it is impossible to intervene in every sector due to limited resources. Third, pressing actions will be complemented by long-term planning efforts rooted in technical assistance to municipalities as well as incentives for community participation. Fourth, in order to foster enabling conditions for a sustained and transparent process that will build on this initial specific investment credit, cost recovery and monitoring and evaluation will be emphasized. 3. Project Description The proposed lending instrument is a specific investment credit. The project has three components. Component 1: Urban upgrading in La Paz (US$10.4 million, of which US$10.0 million IDA credit and US$0.4 million in local counterpart financing)? Sub-component 1A: Preparation (US$0.49 million of which US$0.47 million IDA credit). Sub-component activities include: (a) sub-project designs; (b) preparatory studies; (c) development of a communication strategy and operational manual; and (d) basic equipment.? Sub-component 1B: Strengthening Community Organization and Development (US$0.96 million of which US$0.83 million IDA credit). Sub-component activities include (a) community participation during the entire project cycle, including the key operations of sub-project selection, maintenance and operation; (b) regularization of land tenure rights for area residents; (c) contingency planning for responding to disasters; (d) eligible resettlement costs; and (e) supervision and audits of community development activities.? Sub-component 1C: Physical Infrastructure (US$8.95 million of which US$8.7 million IDA credit). The sub-component would finance a package of demand-driven local investments at the neighborhood level, comprising (a) basic access, i.e. primarily lowcost road paving, sidewalks, and public transport stops; (b) street lighting; (c) improvements to existing drainage infrastructure, new drainage networks, street drains; (d) risk mitigation works; (e) installation of sanitation facilities; (f) environmental protection through green area creation, reforestation and solid waste collection and disposal; (g) community recreation facilities including community services and childcare; and (h) supervision and audits of physical infrastructure activities. Component 2: Urban transport in El Alto (US$ 10 million, of which US$10 million IDA credit)? Sub-component 2A: Trunk Infrastructure Development (US$ 4.17 million). The sub-component would finance infrastructure investments for trunk roads and associated drainage works in El Alto to remove bottlenecks and enhance the links between the southern and northern parts of the city. Investments would be directed towards the

3 completion of the city?s second ring road through: (a) the construction of a 3.7 km long trunk road (Avenida Litoral); (b) the construction of a 0.76 km long trunk road (Avenida Costanera), and (c) the construction of a 2-lane bridge over the R?o Seco at the intersection of Av. Litoral and Av. Costanera. The road investments would include typical ancillary works, such as improved road drainage and street lighting. These interventions would improve the communication between the main radial avenues in the city, (Av. 6 de Marzo towards Oruro, Av. Ladislao Cabrera towards Viacha, and Av. Juan Pablo II) and provide an improved link for heavy goods traffic between the outer parts of El Alto and long-distance movements between the Bolivian hinterland and Peru. In addition, these improvements would promote the development of new economic and productive zones and reduce the concentration of activities in the congested?la Ceja? zone.? Sub-component 2B: Modernization of Public Transport Services and Urban Transport Management (US$ 4.66 million). This sub-component would finance the design and implementation of a series of initiatives to enhance public transport services in the city and increase efficiency with regards to urban transport management. Said initiatives include: (i). Modernization of the Public Transport System (US$ 2.47 million). This initiative includes the paving of dirt or gravel streets that currently carry high volumes of public transport vehicles. It would also include capacity building and technical assistance activities to support the preparation of a public transport modernization strategy for the municipality establishing the institutional, regulatory, social and technical bases for the implementation of a high-capacity transit system in the metropolitan area of La Paz-El Alto (Bus Rapid Transit-BRT- system). Several initiatives are being initially financed through a Project Preparation Facility (PPF) including: (a) a six-month study to assess the needs of the city (street improvements, reorganization of routes, institutional measures, etc) and future steps required to transform and reorganize the current system of public transport with an aim to develop a transport strategy based on mass transit systems and (b) a series of technical assistance activities to initiate a process of consultations with public transport operators and community leaders. (ii). Non-Motorized Transport (US$ 1.3 million). A strategy is being developed, with funding from the Project Preparation Facility, to establish a policy and investment strategy for improving the conditions for pedestrian and bicycle movement in El Alto. Aside from ensuring the construction of paved sidewalks along Avenida Litoral (which has not been common practice in new road projects in El Alto until now), this subcomponent would finance strategically located bikeways and improve sidewalk conditions in areas with many pedestrians. (iii). Other Road Network Improvements (US$ 0.9 million). These improvements include (a) low-cost and labor intensive pavements to improve all-weather access to residential streets, (b) the definition and initial implementation of a traffic safety and

4 citizen?s education strategy, and (c) the elaboration of traffic management (including traffic signals) standards and implementation of priority traffic engineering measures.? Sub-component 2C: Capacity-Building and Institutional Strengthening (US$ 0.7 million). This sub-component would strengthen the institutional capacity in El Alto for urban development and transport management (in areas such as planning, budget execution, project evaluation, design and supervision of works, maintenance of assets, environmental management, traffic engineering, monitoring and administration of public transportation services, etc). It would also include a long overdue re-engineering of the internal procedures and urban transport regulations of the municipality.? Sub-component 2D: Project Implementation (US$ 0.48 million). This subcomponent would finance the contracting of a Project Director, a Civil Engineer, an Economist and a Traffic Engineer, as well as support personnel, equipment and training to provide support to the Municipality for the implementation of the project. All these will be contracted as part of project preparation and will continue working within the municipal offices throughout the duration of the project. Component 3: Sanitation in Santa Cruz (US$ 10.0 million, of which US$10.0 million IDA credit)? Sewerage and Wastewater Treatment (US$ 10.0 million of which US$10.0 million is IDA credit). The component would finance: (i) the construction of secondary sewerage networks in neighborhoods UV-106 (partially), UV-114, UV-115, UV-118, UV-119, and UV-140 of Santa Cruz, which are of the poorest areas located between Anillos 4 and 5, thereby expanding service to 37,500 additional residents of the city; (ii) the construction of main collectors and a sewage pumping station in the neighborhoods to which the service is being extended, and interceptors which would connect these areas to the existing main conveyance systems which will transport the wastewater to the existing wastewater treatment plants; and (iii) execution of works for increasing the capacity of the three wastewater treatment plants of Santa Cruz so as to enable them to process the increased wastewater flow which would reach them in the future. 4. Project Location and salient physical characteristics relevant to the safeguard analysis The municipality of La Paz occupies a total of 2,012 km2 of which 1,832 km2 are classified as rural and 180 km2 as urban. Urban La Paz has a total population of 790,000 inhabitants (compared with only about 3,700 inhabitants in rural areas), and is situated inside 5 major and some 200 minor drainage basins. About 35% of La Paz?s population is classified as poor and is concentrated on the northern, eastern and western slopes of the city where a lack of physical infrastructure compounds the risks associated with steep gradients. About 32% of the population living in these areas resides on slopes in excess of 45 degrees where frequent mud slides result in significant loss of life and property. Overall, about one quarter of La Paz?s urban population (almost 200,000 persons) are thought to live in areas at risk, with very limited access to basic services.

5 In 2000 the Municipal Government of La Paz initiated an integrated urban upgrading program with the objective of improving these living conditions in the city s lowestincome and most risk-prone neighborhoods. Beginning with five marginal neighborhoods, the program subsequently expanded both in numbers as well as in scope, by addressing risk prevention and disaster management after a large scale landslide in Today the municipality?s urban upgrading program known as Barrios de Verdad program (meaning real neighborhoods) is in its fourth of a total of seven phases that will ultimately upgrade 105 neighborhoods. The program s intervention is based on a selection mechanism whereby neighborhoods present proposals that are evaluated according to their social and economic impact. This public competition for urban upgrading programs encourages wide-spread community participation and ensures that investments in public works respond to resident demand. Within the same metropolitan region, the municipality of El Alto is adjacent to La Paz. Its current population totals 650,000, 81% of whom identify themselves as indigenous of predominantly Aymara origin. Yet it is one of the fastest growing areas in the southern hemisphere, with an average yearly growth rate of 6.7%, unlike La Paz whose population growth is constrained by its geography. Given its flat topography and due to deficient land-management policies, rapid and uncontrolled urban sprawl in El Alto has been a constant over the last decades. As a result, El Alto is facing strong pressures and demands for the provision of public services, including transport services and road infrastructure. However, towering 3,962 meters above sea level, El Alto also controls the slopes and access into the capital, which is located at 3,597 meters in a deep depression. Thus it is naturally a vital transport hub that features an international airport within its city limits (serving La Paz), and connects via four highways with important regions of the country (La Paz, Desaguadero and Copacabana on the border with Peru, Oruro, Cochabamba and Santa Cruz and the municipality of Viacha). However, this system relies on the municipal urban road network which is often poorly planned and developed. The municipal transport system is characterized by chaotic traffic flows and congestion in the main arteries, with pedestrians, hucksters and vehicles sharing the roads in many critical points (La Ceja for instance, which concentrates most of the economic activity of the city and is the main entry point from La Paz). Contributing factors to this situation are: (i) inadequate infrastructure; (ii) increasing vehicle motorization; (iii) an over-supply of small capacity public vehicles: (iii) a business scheme in the public transport industry that promotes competition in the market and not for the market; (iv) lack of adequate infrastructure for non-motorized transport; (v) inadequate institutional management of the public transport system including weak enforcement of transit laws and a lack of coordination mechanisms among different jurisdictions. In Santa Cruz, it is the sanitation sector that faces the most immediate challenges. Santa Cruz has a population of about 1.3 million, growing at an annual rate of over 6%. Sanitation services in Santa Cruz are provided by 10 cooperatives of which the largest is SAGUAPAC, serving 65% of the city?s area. Sewerage coverage in SAGUAPAC?s service area is only about 50%, giving Santa Cruz an overall level of sewerage coverage of only 32%. In addition to the immediate public health and environmental effects

6 associated with low sewerage coverage, sewage infiltration into the city?s main aquifer will result, within a few years, in irreversible damage. There is therefore an urgent need to increase the coverage of Santa Cruz?s sewerage system to avoid the much larger investments associated with developing an entirely new water supply source for the city. The cooperative has served the city for more than twenty years and has been recognized as one of the best managed in Latin America. It is run by a general assembly that names the top directors and their regulations grant the supervision council a veto right over the management council, which contributes to its stability. The cooperative has already received two Bank credits and technical assistance to train its staff, both of which have been used very effectively. Although its achievements have been impressive, its long term sustainability has been hindered by the city s constant growth as well as its need to protect the aquifer by reducing the infiltration of raw sewage from housing units not connected to the sewerage system. 5. Environmental and Social Safeguards Specialists Mr Juan D. Quintero (LCSEN) Mr Maximo Liberman (LCCBO) Ms Ruth Llanos (LCCBO) Mr Jorge E. Villegas (CESIG) Mr Juan Manuel Garcia Diaz (LCSFU) 6. Safeguard Policies Triggered No Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Cultural Property (OPN 11.03) Indigenous Peoples (OP/BP 4.10) Involuntary Resettlement (OP/BP 4.12) Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) Projects in Disputed Areas (OP/BP 7.60) II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: The project has been classified as B from the environmental point of view. Therefore, resettlement is not envisaged but might be necessary in some specific cases. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: Possible Impacts La Paz

7 1. Changes in the land structure: Caused by cleaning, moving earth, channeling and tubing of creek water, this also includes building infrastructure works such as latrines, community centers, etc. 2. Solid waste creation: the generation of solid waste could lead to a potentially hazardous contamination of land during the execution stage and could take place while installing camps and moving soil. 3. Increasing noise levels: during the execution stage there will be an expected increase in the noise level due to machines used in construction, installations and excavation. 4. Archeological remains could be found especially in La Paz since it is located within a river basin. El Alto Possible Impacts 1. Atmospheric emissions 2. Noise emission 3. Creation and disposal of solid waste in drainage networks and surface currents. 4. Nuisance to pedestrians and site users due to total or partial obstruction of public space (streets, sidewalks, etc.) 5. Loss of vegetable layer 6. Alteration of landscape Santa Cruz Possible Impacts 1. Changes in the land structure 2. Solid waste creation 3. Soil contamination 4. Reduction in water quality due to contamination by wastewater 5. Health impacts related to the emission of particulate matter

8 6. Increasing noise levels: during the execution stage (there will be an expected increase in the noise level due to machines used in construction, installations and excavation). 7. Changing levels of shallow groundwater levels 8. Removal and impact on vegetable cover 9. Infrastructure damage 10. Water Contamination 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Management Environmental Impacts La Paz? Avoid leveling off land during works, mixing concrete directly on the land, spilling fuel.? Use household waste bins, reuse of material dug up during excavations and disposal of excess waste.? Reuse hydraulic tests fluids (for example, to water crops/plants); to have chemical toilets for construction personnel.? Do not store, even temporarily, excavation materials in any part of the river; immediately remove accidental spills with appropriate materials.? Occasionally humidify internal pathways within the site; transport excavation material on established pathways.? Carry out excavation and tube installation tasks during daylight hours and keep vehicles in optimum working order.? Separate the organic material layer from the inert material; avoid weighing down the layer of earth with heavy machinery in and outside of the site. El Alto? Management of construction material and recyclable waste? Construction material management? Liquid waste-fuel-oil-chemical management? Superficial water management? Vegetation management? Machinery and equipment? Camps and shops? Atmospheric emissions? Signs and traffic management? Social communication? Hygiene, industrial security and occupational health

9 Santa Cruz? Avoid leveling off land during works, mixing concrete directly on the land, spilling fuel.? Use household waste bins, reuse of material dug up during excavations and disposal of excess waste.? Reuse hydraulic tests fluids (for example, to water crops/plants); to have chemical toilets for construction personnel.? Do not to store, even temporarily, excavation materials in any part of the river; immediately remove accidental spills with appropriate materials.? Occasionally humidify internal pathways within the site; transport excavation material on established pathways.? Carry out excavation and tube installation tasks during daylight hours and keep vehicles in optimum working order.? Separate the organic material layer from the inert material; avoid weighing down the layer of earth with heavy machinery in and outside of the site. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. In terms of assessing capacity and commitment of the institutions responsible for implementing and monitoring the agreed plans, each city has particular institutional arrangements to respond to these requirements. In the case of La Paz, the environmental quality unit is in charge of supervising the fulfillment of environmental policy recommendations set forth by the project. The environmental study suggests that the city contract two technical staff members for the duration of the project. One will take charge of the environmental monitoring and the other will provide environmental education focusing on solid waste management, sowing and the gardening in the selected neighborhoods. In El Alto, the environmental assessment identified that the municipality lacks approved environmental planning and norms. For that reason, the assessment includes a series of environmental management manuals for the city. However, since the different municipal units do not presently have the technical capacity to implement these new instruments, institutional strengthening is recommended on several levels. SAGUAPAC, on the other hand, does already have an Environment and Labor Security Department that will enforce the current environmental legislation as well as implement the specific environmental guidelines laid out by the manuals. Moreover, the project will be monitored during its execution by the Works Supervision Unit to ensure prevention and mitigation of risks.

10 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Stakeholders: Municipality of La Paz, Municipality of El Alto and SAGUAPAC. The environmental studies and resettlement framework have been posted on the three executing agencies? websites and hard copies are currently on display in their offices. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Date of receipt by the Bank 05/05/2006 Date of "in-country" disclosure 05/26/2006 Date of submission to InfoShop 05/19/2006 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Date of receipt by the Bank 05/17/2006 Date of "in-country" disclosure 05/26/2006 Date of submission to InfoShop 05/19/2006 * If the project triggers the Pest Management and/or Cultural Property, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP Environment Assessment Does the project require a stand-alone EA (including EMP) report? If yes, then did the Regional Environment Unit or Sector Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? OPN Cultural Property Does the EA include adequate measures related to cultural property? Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on cultural property? OP/BP Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? No No No

11 The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank s Infoshop? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project cost? Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? D. Approvals Signed and submitted by: Name Date Task Team Leader: Ms Alexandra Ortiz 05/12/2006 Environmental Specialist: Mr Juan D. Quintero 05/05/2006 Social Development Specialist Ms Ruth Llanos 05/08/2006 Additional Environmental and/or Social Development Specialist(s): Mr Jorge E. Villegas 05/15/2006 Approved by: Regional Safeguards Coordinator: Comments: Sector Manager: Comments: Mr Juan D. Quintero Mr John Henry Stein

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