INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC3763. Date ISDS Prepared/Updated: 07/11/2008 I. BASIC INFORMATION. A. Basic Project Data

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Date ISDS Prepared/Updated: 07/11/2008 I. BASIC INFORMATION A. Basic Project Data INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC3763 Country: Tunisia Project ID: P Project Name: Second Water Sector Investment Task Team Leader: Julia Bucknall Estimated Appraisal Date: October 24, Estimated Board Date: February 26, Managing Unit: MNSSD Lending Instrument: Specific Investment Loan Sector: Irrigation and drainage (50%);Water supply (27%);General water, sanitation and flood protection sector (23%) Theme: Water resource management (P);Environmental policies and institutions (S) IBRD Amount (US$m.): IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: Borrower African Development Bank FRANCE: French Agency for Development B. Project Objectives [from section 2 of PCN] The project has three development objectives: to help (i) the Government institutions involved in water management take better investment, policy and pollution control decisions using an improved information base, (ii) remote rural communities use improved water supply systems, and (iii) farmers use improved or new irrigation and drainage systems. This will be achieved mainly through: (a) making new information and the results of innovative pilot activities available to decision-makers in the MARH and MESD, (b) creating/improving piped drinking-water services in rural areas, and (c) creating/rehabilitating irrigation systems. The project objectives are fully in line with the overarching goals of the water strategy and will contribute to bringing the effective demand for water in balance, on a sustainable basis, with the expected future levels of supply at the national and local levels.

2 The project targets three groups of beneficiaries: i) the staff involved with water resources management in public institutions. After project closing, this staff will be better informed (with improved monitoring systems), better trained, and better equipped (with new methodological tools and practical results from experimental actions), ii) the rural populations whose living conditions will improve with better drinking water systems (they will travel less distance to collect the water and be able to use more water than before), and iii) irrigated farmers, who will have access to new or improved irrigation water. C. Project Description [from section 3 of PCN] The project will be a joint operation with the AfDB, and AFD. Among the total cost of $170 million (TD 200 m), the Bank will invest 20% (US$ 34 m), AfDB 20%, and AFD 40%. The remaining 20% would be financed by the Government of Tunisia. The first objective of the project relates to three components: Component 1: groundwater management (with 21% of the total cost) will include 150 exploratory boreholes, purchase and rehabilitation of piezometers, participatory aquifer management schemes, information systems to monitor surface and ground water quantity. Component 2: Water Conservation and Environmental Protection (4% of the total) will focus on monitoring of water pollution, inclusion of environmental clauses into standard bidding documents for water infrastructure, and studies on using treated wastewater for uses other than agriculture. Component 3: Institutional and capacity-building (2% of the total) consists of targeted research on non conventional water use, a new long-term strategy (Water Vision 2050), institutional coordination, and M&E. The second objective relates to Component 4: Rural water supply (27% of the total) focuses on improving basic water supply systems for a more advanced level of service, creating new systems in unserved areas and supporting user groups. The third objective relates to Component 5: Improved irrigation management (46% of the total investment), which includes creation of schemes where groundwater has been shown to be sufficient, rehabilitation of surface water schemes, small works including modernizing pumping stations, and extension of existing schemes using treated wastewater. Activities using treated wastewater for agriculture will use Tunisian guidelines that were developed under PISEAU I. This component also includes support on tariff studies, support to water user associations and other technical assistance activities. D. Project location (if known) The project is financing the government s programme, as detailed in the 11th plan for economic development. The sites of the investments for the first two years of implementation are known. Those after that time are not yet known, but criteria of eligibility exist or are being developed. All types of activities in the program were also financed under the first project, for which considerable capacity was built up to incorporate environmental considerations into investments (environmental clauses in standard bidding documents for hydraulic investments, training of regional implementing agencies, etc) and for monitoring potential impacts on soil (study on soil quality degradation in irrigated areas) as well as surface water (monitoring system for sources of pollution) and groundwater (groundwater quality monitoring, groundwater models and management plans). These mitigating and screening actions will also be continued and further strengthened in PISEAU II through an Environmental and Social Management Framework (ESMF), which will provide criteria for determining when specific environmental or social

3 safeguard plans are necessary and outline the required content of such plans. Therefore, the project will develop specific environment and/or land acquisition plans for specific investments identified in the screening questionnaire contained in the ESMF. An environment and social specialist will be part of the Project Management Unit to oversee all the environment and social requirements identified in the EMSF and the project-specific ESMPs. The project will also continue the program of training to the regional implementing agencies. The project involves the following possible environmental issues. 1. For the drilling of exploratory boreholes -- potential for overexploitation of shallow and deep aquifers. The average depth of boreholes is 250 meters. However, the project includes three additional exploratory boreholes to better understand the extent and location of the aquifer shared between Tunisia, Libya and Algeria (North West Saharan aquifer), for which a formal agreement was reached between the three countries. Exploratory boreholes of this type financed by PISEAU I were of great benefit to the knowledge and understanding of this important aquifer. The exploratory boreholes are based on hydro-geological and geophysical studies and benefit from the accumulation of knowledge acquired under PISEAU I amongst other sources. In addition PISEAU I financed modeling of two aquifers (El Houaria and Chougafia). Two additional modeling studies for the proper management of aquifers will be financed under PISEAU II (Hajib and Sisse). The project will also finance modeling as part of a decision support system for the proper management of aquifers. The Environmental and Social Management Framework(ESMF), to be prepared for this project, will clarify the adequacy of the aquifer modelling to determine rate and sequencing of the borehole-drilling as well as the adequacy of the practices used to determine whether a particular borehole is positive. 2. For the creation of irrigation schemes -- possibility of contributing to overexploitation of aquifers; risks of problems of weak agricultural productivity arising from possible poor quality aquifer water; potential risks of over-exploitation of deep aquifers with very limited recharge. The ESMF will evaluate adequacy of practices under PISEAU I and suggest improvements if necessary. 3. For artificial recharge of aquifers with treated wastewater potential damage to aquifer quality if existing Tunisian wastewater quality standards are not consistently met. Artificial recharge with treated wastewater will be piloted in Djerba from the wastewater treatment plant of Aghir which is operated by the Office National de l Assainissement (ONAS). The project will finance a strategyfor artificial recharge with surface and treated waste water and the ESMF will determine the extent to which existing water quality and quantity monitoring activities are adequate. 4. For irrigation with treated wastewater potential problems with soil and shallow aquifer quality if Tunisian wastewater quality standards are not consistently met. The PISEAU I financed and PISEAU II will carry out a study for transfer of treated waste water for irrigation and extend soil and water quality monitoring activities for irrigation schemes, including the sites that use treated wastewater. The ESMF will determine the extent to which these systems are

4 adequate for the schemes that use treated wastewater, especially those that will be financed by PISEAU II. 5. For rehabilitation of irrigation schemes - possible contamination of surface and groundwater with agricultural chemicals and salt. As above, the ESMF will determine the extent to which existing surveillance systems are adequate and suggest mitigation actions as necessary. For social safeguards, the main issue relates to the use of private land for groundwater drilling and for constructing irrigation canals. No resettlement is foreseen. Since the specifics of land ownership of each investment is not yet clear, the ESMF will contain a resettlement policy framework with a screening tool to determine when a land acquisition plan (LAP) needs to be in place and what the LAP should contain. When appropriate, formal agreements ("accords de cession volontaire") will be established with the private land owner(s). These agreements, recorded in a relevant legal format, will clearly indicate the owner(s)' agreement to voluntarily concede his /her land, for the needs of the project without any compensation. Additional information recorded in the agreement could be the dimensions of land and the time frame projected for project use. All agreements will be signed by the project and the designated representatives of the private owners and will be systematically kept for records. E. Borrower s Institutional Capacity for Safeguard Policies [from PCN] The implementing agencies are the Ministry of Agriculture and Hydraulic Resources (MARH) and Ministry of Environment and Sustainable Development (MESD). They were the implementing agencies for PISEAU I, for which performance was satisfactory. Coordination between the different agencies involved in water planning, management and services improved over the last decade, but needs to improve further, since it will become even more important in the second phase of the project. In the activities financed by PISEAU I, the ICR indicated that appropriate environmental guidelines were followed, although supervision on environmental safeguard issues was insufficient. The project would have benefitted from more attention to social issues during implementation, although these were social TA activities rather than safeguards. F. Environmental and Social Safeguards Specialists Mr Sherif Kamel F. Arif (MNSSD) Mr Mohammed A. Bekhechi (LEGEN) Ms Laila Al-Hamad (MNSSD) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered Yes No TBD Environmental Assessment (OP/BP 4.01) The Environmental Assessment (OP/BP 4.01) has been proposed for the project because of the following possible environmental issues: The project involves the following possible environmental issues. 1. For the drilling of exploratory boreholes -- potential for overexploitation of shallow and deep aquifers. The average depth of boreholes is 250 meters. However, the project includes

5 Safeguard Policies Triggered Yes No TBD three additional exploratory boreholes to better understand the extent and location of the aquifer shared between Tunisia, Libya and Algeria (North West Saharan aquifer), for which a formal agreement was reached between the three countries. Exploratory boreholes of this type financed by PISEAU I were of great benefit to the knowledge and understanding of this important aquifer. The exploratory boreholes are based on hydro-geological and geophysical studies and benefit from the accumulation of knowledge acquired under PISEAU I amongst other sources. In addition PISEAU I financed modeling of two aquifers (El Houaria and Chougafia). Two additional modeling studies for the proper management of aquifers will be financed under PISEAU II (Hajib and Sisse). The project will also finance modeling as part of a decision support system for the proper management of aquifers. The Environmental and Social Management Framework(ESMF), to be prepared for this project, will clarify the adequacy of the aquifer modelling to determine rate and sequencing of the borehole-drilling as well as the adequacy of the practices used to determine whether a particular borehole is positive. 2. For the creation of irrigation schemes -- possibility of contributing to overexploitation of aquifers; risks of problems of weak agricultural productivity arising from possible poor quality aquifer water; potential risks of over-exploitation of deep aquifers with very limited recharge. The ESMF will evaluate adequacy of practices under PISEAU I and suggest improvements if necessary. 3. For artificial recharge of aquifers with treated wastewater potential damage to aquifer quality if existing Tunisian wastewater quality standards are not consistently met. Artificial recharge with treated wastewater will be piloted in Djerba from the wastewater treatment plant of Aghir which is operated by the Office National de l Assainissement (ONAS). The project will finance a strategy for artificial recharge with surface and treated waste water and the ESMF will determine the extent to which existing water quality and quantity monitoring activities are adequate. 4. For irrigation with treated wastewater potential problems with soil and shallow aquifer quality if Tunisian wastewater quality standards are not consistently met. The PISEAU I financed and PISEAU II will carry out a study for transfer of treated waste water for irrigation and extend soil and water quality monitoring activities for irrigation schemes, including the sites that use treated wastewater. The ESMF will determine the extent to which these systems are adequate for the schemes that use treated wastewater, especially those that will be financed by PISEAU II. 5. For rehabilitation of irrigation schemes - possible contamination of surface and groundwater with agricultural chemicals and salt. As above, the ESMF will determine the extent to which existing surveillance systems are adequate and suggest mitigation actions as necessary.

6 Safeguard Policies Triggered Yes No TBD Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11) Indigenous Peoples (OP/BP 4.10) Involuntary Resettlement (OP/BP 4.12) Involuntary Resettlement (OP/BP 4.12) has been proposed because of the need to formalize land acquisition in the project. The main issue relates to the use of private land for groundwater drilling and for constructing irrigation canals. No resettlement is foreseen. Since the specifics of land ownership of each investment is not yet clear, the ESMF will include a resettlement policy framework with a screening tool to determine when a land acquisition plan (LAP) needs to be in placen and what the LAP should contain. When appropriate, formal agreements ("accords de cession volontaire") will be established with the private land owner(s) agreement to voluntarily concede his/her land, for the needs of the project without any compensation. These agreements, recorded in a relevant legal format, will clearly indicate the owner(s) agreement to concede his /her land, for the needs of the project without any compensation. Additional information recorded in the agreement could be the dimensions of land and the time frame projected for project use. All agreements will be signed by the project and the designated representatives of the private owners and will be systematically kept for records. Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) Projects in Disputed Areas (OP/BP 7.60) Environmental Category: B - Partial Assessment III. SAFEGUARD PREPARATION PLAN A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared: N/A B. For simple projects that will not require a QER, the target date for preparing the PAD-stage ISDS: 10/15/2008 C. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing 1 should be specified in the PAD-stage ISDS. October 15, Reminder: The Bank s Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in-country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.

7 IV. APPROVALS Signed and submitted by: Task Team Leader: Ms Julia Bucknall 07/10/2008 Approved by: Regional Safeguards Coordinator: Mr Hocine Chalal 07/10/2008 Comments: Sector Manager: Mr Narasimham Vijay Jagannathan 07/10/2008 Comments: