InfoShop. Integrated Safeguards Data Sheet (Initial) Date ISDS Prepared/Updated: 10/21/2002. Section I - Basic Information
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1 Public Disclosure Authorized THE WORLD BANK GROUP InfoShop Integrated Safeguards Data Sheet (Initial) Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Date Prepared/Updated: 10/21/2002 Section I - Basic Information A. Basic Project Data Country: PERU Project ID: P Project: Trade Facilitation and Export Competitiveness Task Team Leader: John Henry Stein Technical Assistance Project Authorized to Appraise Date: October 24, 2002 IBRD Amount ($m): Bank Approval: November 21, 2002 IDA Amount ($m): Managing Unit: LCSFP Sector: General industry and trade sector (100%) Lending Instrument: Technical Assistance Loan (TAL) Theme: Export development and competitiveness (P) Status: Lending I.A.2. Project Objectives: The proposed project is set within a major comprehensive effort from the Government of Peru (GOP) to significantly improve its competitiveness and to restore economic growth and employment. It will also permit Peru to take advantage of new trade opportunities with its largest trading partner (the United States) under the recently approved ATPDEA (Andean Trade Promotion and Drug Eradication Act). The project's development objectives are to assist the GOP to: (i) put in place a more streamlined, integrated and effective institutional and policy framework to increase non-traditional exports; (ii) develop and implement initiatives designed to foster the entrance of new export market participants, especially small and medium producers. I.A.3. Project Description: The project consists of the following five components: a) Improving Strategic Planning & Institutional Framework for Export Promotion This component includes: * Technical assistance for the elaboration of the National Competitiveness Plan through the organization of outreach and civil participation activities, capacity building & training, advisory assistance among other things to elaborate strategic plan to prepare ATPDEA. This sub-component will involve working with PCM, MINCETUR, as well as various government institutions and private sector entities. * Diagnostic studies & strategic benchmarking on issues such as fiscal constraints to export competitiveness, regional particularities in terms of export promotion needs, etc.
2 2 * Institutional strengthening of export promotion capabilities at MINCETUR, the Ministry of Foreign Affairs through 6 embassies / consulates abroad, PROMPEX and PROMPYME. This sub-component will involve consultant services, training and limited equipment purchase. * Technical assistance to provide a strategy and implementation plan through PRMPYME to integrate SMEs into the supply chain foster linkages between large and small producers. b) Adoption and Implementation of Effective Quality Practices Under this component, the loan would finance technical assistance to: * Promote effective quality practices in the private sector through (i) the design of Quality Awareness Program for Business Community & Training Scheme for its Dissemination, and (ii) the design & implementation of training schemes for selected non-traditional export products * Improve quality management & regulation in public sector through an overhaul of the certification process for export products, better collaboration with the private sector on quality issues, and the introduction of a quality-based incentive scheme in the government procurement process. This sub-component will involve working with INDECOPI, DIGESA, SENASA and various private sector entities. * Create a professional society of quality practitioners & association of laboratory managers. This sub-component will involve consultant services, training and limited equipment purchase. * Upgrade the Centro de Innovation Tecnologica CITE) concept & initiate pilot programs for the garment industry, producers of wood products, packaging for selected agribusiness products and maintenance & cleaning services. This sub-component will involve consultant services, training and equipment purchase. * Set up quality Packages Design Unit to assist and inform producers to understand and improve packaging technologies to fit their specific product needs and reduce spoilage and damage losses. c) Improving Access to Export Finance Under this component, the loan would finance technical assistance to: * Advise PROMPYME on the design of export finance instruments for PYMES * Design an International Leasing scheme to facilitate the acquisition of capital goods by exporters (especially SMEs) * Design flexible procedures for the collateralization of assets and their eventual realization * Conduct a diagnosis study on existing Barriers to increased formalization of SMES * Review the bankruptcy procedures at INDECOPI d) Reduction of Logistic Costs This component include: * Diagnostic studies on issues such as the administrative efficiency of Peruvian ports in handling import/export, the determinants for having "missing markets" in secondary transport services (containers & freight, cold chain, brokerage services.), and strengthening the supply chain. * Diagnostic studies on: (i) the feasibility and impact of a logistics and technological
3 3 multi-modal terminal in El Callou serving both port and airport; and (ii) the need for and structure of a network of regional distribution and logistics centers. * Feasibility & Environmental Impact Studies for infrastructure Projects to (i)improve the access to the Port of Callao, (ii) improve the access to regional ports, and (iii) improve the departmental road network * Institutional Strengthening of OSITRAN and PROINVERSION to improve the framework for private sector participation (especially concessions) in transport infrastructure * Institutional Strengthening of Entities responsible for the maintenance and rehabilitation of departmental roads e) Project administration Under this component, the loan would finance the cost of the project administration at PCM, including salaries of project staff, operational expenses (incl. travel), training and limited equipment. This should ensure an efficient implementation and adequate monitoring of the different project components, as well as compliance with the WB financial management and procurement guidelines. Given the number of in-depth diagnostic and other analytical work to be done on specific aspects of the competitiveness problem, some degree of flexibility would be vital to maintain the overall momentum of reform in the evolving environment. Therefore, all five components include some funding reserves for (i) activities, which are now foreseen as necessary, but where the scope and design, and hence cost allocation, is not possible without a prior phase of diagnostic work, as well as (ii) potential activities which may emerge as project / institutional / policy priorities in the second and third years of project implementation. These built-in reserves range from about a quarter to a third of total project value. I.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas.) The project will cover the entire country. The project will provide technical assistance to national and sub-national agencies, civil society organizations and private SME. The main beneficiaries of the project will be exporters, particularly small and medium enterprises, along with other producers and participants in the supply chain, such as transport and service providers, freight handlers, and ultimately consumers as product quality rises and costs are reduced. The project will center its export trade promotion activities in the garment industry, selected agricultural crops, finished wood goods, the packing industry for selected agro-products, and cleaning and maintenance services. Nevertheless, technical assistance and capacity building efforts will benefits a wider audience. The project will also identify key transport infrastructure needs, such as the access to the Port of Callao and to regional port facilities, and improvements required in existing departmental road networks. The project will finance feasibility, environmental and social studies to solve crucial transportation bottlenecks, without limiting the analysis to infrastructure.
4 4 As a technical assistance project it will not impact protected areas, critical natural habitats, or cultural or socially sensitive areas. B. Check Environmental Classfifcation: C (Not Required) Comments. As a technical assistance operation the project is not expected to have any potential large scale, significant and/or irreversible environmental impact. All project components have included environmental considerations to enhance environmental assessment practices or to provide a strategic overview of the industries and activities proposed. All design and feasibility studies for infrastructure improvement will ensure compliance with the Bank's safeguard policies and compatibility with Peruvian environmental regulations and environmentally sound construction standards and procedures. The project will support training for trainers, and develop dissemination and instructional material, to strengthen the ability of SME in incorporating environmental considerations in their activities. Simplified environmental assessments and control mechanisms will be explored for each industry to provide practical guidelines to potential exporters. Quality control and quality management promotion activities contemplate training in environmental regulations and compliance mechanisms, with emphasis on Environmental Management Systems (as advocated by the ISO 14,000 series). Furthermore, the project proposes to develop strategic environmental assessments for (i) the garment industry, (ii) manufacture of maintenance and cleaning products, and (iii) private sector participation in transport infrastructure. The project is expected to generate environmental benefits through greater awareness of environmental regulations in all participants, develop streamlined procedures and actions to address logistics bottlenecks, reduce spoilage and lower vehicle emissions as port freight handling and processing times improve. The project through the training component should also heighten awareness of agency officials handling trade matters to better enforce the terms of international conventions relating to the environment. The results of the strategic environmental assessments should provide the GOP with specific policy recommendations to address critical environmental issues. C. Safeguard Policies Triggered Policy Applicability Environmental Assessment (OP/BP/GP 4.01) 0 Yes 0 No 0 TBD Forestry (OP/GP 4.36) 0 Yes * No 0 TBD Natural Habitats (OP/BP 4.04) O Yes * No 0 TBD Safety of Dams (OP/BP 4.37) O Yes * No O TBD Pest Management (OP 4.09) C Yes * No C TBD Involuntary Resettlement (OP/BP 4.12) 0 Yes 0 No 0 TBD Indigenous Peoples (OD 4.20) C Yes * No O TBD Cultural Property (OP 4.11) C Yes * No 0 TBD Projects in Disputed Territories (OP/BP/GP 7.60)* C Yes 0 No O TBD Projects in Intemational Waterways (OP/BP/GP 7.50) 0 Yes 0 No 0 TBD *By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties'claims on the disputed areas
5 5 Section II - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data. II.D. I a. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts. Explained in Section B. II.D. I b. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. NA II.D. I c Describe any potential long term impacts due to anticipated future activities in the project area. Explained in Section B. II.D.2. In light of 1, describe the proposed treatment of alternatives (if required) NA II.D.3. Describe arrangement for the borrower to address safeguard issues Explained in Section B. II.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Stakeholders include a broad range of people from the various regions of Peru, especially small and medium producers. EAs will be publicall consulted and a social assessment will also be done. E. Safeguards Classification. Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply. [ ] SI. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in management of one or more safeguard areas [X] S2. - One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable [ ] S3. -No safeguard issues [ ] SF. - Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues. F. Disclosure Requirements Environmental Assessment/Analysis/Management Plan. Expected Actual Date of distributing the Exec. Summary of the EA to the ED (For category A projects) Resettlement Action Plan/Framework: Expected Actual
6 6 Indigenous Peoples Development Plan/Framework: Expected Actual Pest Management Plan: Expected Actual Dam Safety Management Plan: Expected Actual If in-country disclosure of any of the above documents is not expected, please explain why. Signed and submitted by Name Date Task Team Leader: John Henry Stein 10/21/02 Project Safeguards Specialists 1: Alejandro Deeb 10/21/02 Project Safeguards Specialists 2: Project Safeguards Specialists 3: Approved by: Name Date Regional Safeguards Coordinator: Juan D. Quintero 10/21/02 Sector Manager/Director: Susan G. Goldmark 10/21/02 For a list of World Bank news releases on projects and reports, click here SELRCHI FEEDBACA. snf MAP - -[HOQCASE,.
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