Page 1 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 12/29/2005 Report No.: 34894 1. Basic Project Data Country: Georgia Project ID: P098850 Project Name: Infrastructure Pre-Investment Facility Task Team Leader: Tamara Sulukhia Estimated Appraisal Date: December 20, 2005 Estimated Board Date: February 14, 2006 Managing Unit: ECSIE Lending Instrument: Technical Assistance Loan Sector: General energy sector (55%);General transportation sector (45%) Theme: Infrastructure services for private sector development (P);Trade facilitation and market access (S);Export development and competitiveness (S) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): 5.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 0.90 0.90 Environmental Category: B - Partial Assessment Simplified Processing Simple [X] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [X] 2. Project Objectives The development objective of the project is to facilitate infrastructure investments that have strategic importance and/or special complexity by ensuring that proper feasibility work is carried out in a timely manner in order to enable the government to make sound investment decisions, and where appropriate, to proceed expeditiously with further preparatory steps and mobilize adequate financing for implementation. The considered areas include energy and transport, consistent with Governments investment priorities and CPS objectives. Specifically, the project will finance technical assistance (TA) to ensure feasibility (or otherwise) and effectiveness of considered investments through preparation work including technical and sectoral studies, engineering design, and analysis of economic, financial and environmental feasibility, as well as financial and legal advisory services, where required. The facility will support the delivery of these outcomes with details to be worked out on a case-by-case basis. 3. Project Description The IPF Project has two major components: Component 1 will finance TA for Khudoni Hydropower Project preparation; Component 2, with two sub-components, will finance preparation of Transit Corridor projects. While Components 1 and 2.A. are clearly Page 2 defined, the scope of the sub-Component 2.B. is broadly determined for transit corridor projects and depends upon the availability of funds remaining after funding needs for Component 1 and 2.A. are satisfied. 4. Project Location and salient physical characteristics relevant to the safeguard analysis Component 1 of the project plans to undertake a feasibility study and develop detailed designs and specification for the possible Khudoni Hydropower Plant project, which would be located more than 90km upstream of the Enguri River discharge point into the Black Sea. Component 2 of the project envisages TA for prepration of the upgrading of Red Bridge-Tbilisi-Poti transit road section from Agaiani to Seveneti (approximately Km 46 mark to Km 80 mark). 5. Environmental and Social Safeguards Specialists Mr Philip W. Moeller (ECSIE) Ms Jane Olga Ebinger (ECSIE) Mr Satoshi Ishihara (ECSSD) 6. Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Cultural Property (OPN 11.03) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X 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 IPF Project is limited to the provision of technical assistance for the preparation of follow-on investment, and no negative impact on the environment or society, therefore, is expected from the implementation of the proposed TA project. Since the follow-on investments under the umbrella of the IPF Project include components that would be at least Category B and possibly Category A, however, the IPF Project is classed as Category B. Normally Category B projects require the preparation of an Environmental (Safeguard) Assessment and an associated Environmental Management Plan (EMP) as a condition of Page 3 appraisal. These investment-specific due diligence instruments are not relevant to a technical assistance facility. A Safeguard Framework (SF), however, is a new approach to due diligence on TA loans and has been prepared to meet the Bank’s safeguard requirements. The SF approach has been assessed by the Regional Safeguards Coordinator (ECSSD) and other relevant experts and has been found to be in compliance with the Bank policy requirements. The SF summarizes the approach to safeguards to be taken during the implementation of the IPF Project, which will include the preparation of Environmental Impact Assessments (EIAs) and Social Impact Assessments (SIAs) for the follow-on investments. The assessment process will be conducted in accordance with World Bank policies and guidelines. The discussion in the SF covers the both the power and transport sector components. The SF has been reviewed by the Regional Safeguards Coordinator. Disclosure to the public of assessment documents and public feedback is an essential part of the safeguard process. In this case the SF itself has been disclosed in country and through the World Bank INFOShop. The SF outlines the disclosure process to be followed for the respective components during the implementation of the IPF Project and identifies the documentation to be produced during implementation of the IPF Project. The SF is to be part of Project Operational Manuals to be followed during project implementation. The Khudoni component of the IPF Project triggers the World Bank's safeguard policy on International Waterways (OP 7.50)because the river on which the hydropower plant and dam would be located flows into the Black Sea, which is an international waterway under the Bank policy. The proposed plant is expected to have no impact on the quality of the water discharged into the Balck Sea and no impact on sediments brought into the Black Sea. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The EIAs and SIAs to be prepared under the project would identify the potential indirect and/or long term terms impacts of the anticipated future activities. The Khudoni project would be a category A project since it involves the completion of a major high dam and reservoir complex. Transit Corridor projects would most likely be category B unless there would be major new alignments or other risks identified in the EIAs. Although the IPF Project provides only for technical assistance, the follow-on projects would potentially include impacts that would trigger the safeguard policies for resettlement and/or land acquisition. The technical studies for Component 1 would include the preparation of a Resettlement Action Plan for Khudoni, and under Component 2 similar plans would be prepared for those segments identified as triggering this requirement. Since the Enguri River, on which a possible future Khudoni hydropower plant would be located, flows into the Black Sea, the International Waterways Safeguard (OP 7.50) has been triggered. The project is not expected to cause appreciable harm to the other riparians. Page 4 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. N/A for the current project, but project alternatives will be considered for the follow-on works. 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. The borrower has prepared the Safeguard Framework and will prepare TORs for the EIAs and the SIAs for all components of the project, as well as facilitate the local disclosure process. These documents will meet both Georgian and World Bank requirements. The SF has been disclosed in country and is to be part of Project Operational Manuals to be followed during project implementation. On behalf of the Government of Georgia on December 22, 2005 the Bank has notified the Commission for the “Convention on the Protection of the Black Sea AgainstPollution” of the planned feasibility study and (if a viable project) the subsequent detailed design and specification work for the Khudoni project and its triggering of Bank Policy OP 7.50. Comments from the Commission are expected by February 1, 2006. The Bank does not expect to receive any objections to proceed with the technical assistance to assess Khudoni feasibility. Despite the fact that the proposed Khudoni project is expected to have no impact on the quality of the water discharged into the Black Sea and no impact on sediments brought into the Black Sea, in the frame of the project the consultants undertaking the feasibility study would assess what impact, if any, a Khudoni hydropower plant would have on water flow from the Enguri River into the Black Sea. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Key Stakeholders include: Ministry of Finance, Ministry of the Economic Development, Ministry of Energy, Ministry of Environmental Protection and Natural Resources, Ministry of Health and Social Services, Ministry of Culture, Ministry of Refugees and Resettlement, Regional and Local Governments, and various environmental and social NGOs at the national and local level. The Safeguard Framework has been prepared and disseminated to enable such groups to understand the framework and processes to be followed for safeguard protection. The Safeguard Framework outlines the overall consultation process to be followed. The Commission for the “Convention on the Protection of the Black Sea Against Pollution” has been notified and comments from the Commission are expected by February 1, 2006. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Page 5 Date of receipt by the Bank 11/14/2005 Date of "in-country" disclosure 12/07/2005 Date of submission to InfoShop 12/07/2005 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 11/14/2005 Date of "in-country" disclosure 12/07/2005 Date of submission to InfoShop 12/20/2005 * If the project triggers the Pest Management, Cultural Property and/or the Safety of Dams policies, 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: n/a 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 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit review and approve the EA report? Yes Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan, abbreviated plan, or process framework (as appropriate) been prepared? Yes If yes, then did the Regional Social Development Unit review and approve the plan / policy framework / policy process? Yes OP 7.50 - Projects on International Waterways Have the other riparians been notified of the project? Yes If the project falls under one of the exceptions to the notification requirement, has this been cleared with the Legal Department, and the memo to the RVP prepared and sent? Yes What are the reasons for the exception? Please explain: Yes Has the RVP approved such an exception? Yes The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Infoshop? Yes 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? Yes All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities Yes Page 6 been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project cost? Yes Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Yes Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? Yes D. Approvals Signed and submitted by: Name Date Task Team Leader: Ms Tamara Sulukhia 12/27/2005 Environmental Specialist: Mr Philip W. Moeller 12/12/2005 Social Development Specialist Mr Philip W. Moeller 12/12/2005 Additional Environmental and/or Social Development Specialist(s): Ms Jane Olga Ebinger 12/20/2005 Approved by: Regional Safeguards Coordinator: Mr Ronald N. Hoffer 12/27/2005 Comments: Cleared to reflect triggering of OP/BP 4.12 and 7.50 Sector Manager: Mr Motoo Konishi 12/28/2005 Comments: Cleared.