Page 1 PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB4124 Project Name LAC Regional Sustainable Transport and Air Quality Project Region LATIN AMERICA AND CARIBBEAN Sector General transportation sector (60%);Health (25%);Sub-national government administration (10%);General energy sector (5%) Project ID P096017 GEF Focal Area Climate change Borrower(s) REGIONAL Implementing Agency Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared February 22, 2006 Estimated Date of Appraisal Authorization May 14, 2006 Estimated Date of Board Approval September 15, 2007 1. Key development issues and rationale for Bank involvement Latin America’s transportation sector contributes relatively more greenhouse gas emissions to the atmosphere than any other region in the world. While transportation accounts for about 21% of CO2 equivalent GHG emissions worldwide, in Latin America, the sector contributes about 34% of regional GHG emissions (IEA World Energy Outlook). Latin America is also one of the more highly urbanized regions of the developing world; 75% of the region’s population lives in cities, and most of the region’s GDP is generated in urban agglomerations. The strategic link between climate change and urban transport policy, therefore, is particularly tight in the Latin America region. For most policy makers in the region, and for the average urban dweller, however, climate change is a problem largely invisible from day-to-day life. Most past and current decisions regarding transportation policy and investments have been driven by the need for accessibility, and, increasingly, by the need to address the growing air quality problems to which transportation is a major contributor. Indeed, the contribution of transportation to local air quality problems is substantial; according to one study that looked at Mexico, Santiago, and Sao Paulo among other world cities, the contribution of transportation to ambient concentrations of carbon monoxide, oxides of nitrogen, and volatile organic compounds was never less than 50%. (Gorham 2002) In addition, particulate emissions are a growing problem that increasing use of diesel vehicles is exacerbating. Reducing GHG emissions from Latin America’s transportation sector, therefore necessarily involves, inter alia , a concerted and consistent strategic focus on urban transportation. Specifically, a successful GHG strategy in the region must address the related issues of accessibility for different groups of urban dwellers, and local pollution emissions, or else it will be relegated to irrelevance. Page 2 Around the region, the Bank has pursued a strategy of coupling GHG reduction with accessibility enhancement and local pollutant emissions reductions, most notably in GEF-funded projects in Santiago, Mexico, and Lima. Each of these projects has been linked to a sectoral project involving fairly substantial investment in public transport development. They have occurred at a pivotal moment for Latin America, in which the region has produced viable alternative models for urban transportation other than unbridled accommodation of the car. Innovations in cities throughout the region, such as Bogotá, Quito, and Curitiba, have sparked an interest in the potential of well-integrated public transport, land-use, and non-motorized transport systems to transform heretofore seemingly intractable patterns of motorization. At such a moment, there is a critical need to ensure knowledge sharing and dialog among cities of the region. Cities need to talk to each other, and share information about what works, and what does not. They need to understand the hard political choices involved in developing sustainable transportation policies, and share strategies and tactics for negotiating them. They also can benefit substantially from methodologies developed elsewhere or jointly. Because of the tight coupling between political, local environmental, and accessibility objectives in the decision-making process on the one hand, and the actual outcomes in terms of emissions of greenhouse gas emissions on the other, as well as the fact that the challenges facing medium and large-size cities seeking to make their transport systems more sustainable are not unique, it was felt that a regional approach pooling GEF and Bank resources would be more effective (as well as cost-effective) than continuing a city-by-city approach. The Sustainable Transport and Air Quality (STAQ) project has been developed specifically to respond to these conditions. To see the link to the CAS, specific sector issues, and country eligibility, please refer to Annex 18. To see specific sector issues related to the specific urban centers or cities participating in the project, please refer to Annex 19. The World Bank has a long and proven track record, and a deep well of technical skills related to the implementation or transport, urban development, and environmental projects. Its presence at the sector level in various countries in transport, energy, health, and environment oriented projects provides a unique cross-referenced perspective which allows replication of good practices, while drawing on lessons of experience. The STAQ program involves regional coordination and south-south learning as an integral element of its approach, and the Bank has substantial comparative advantage in this regard. For one thing, it is involved with a range of countries and cities across the region in urban transport, urban development, and environmental projects. For another, the Bank has been a critical factor behind the creation of the Clean Air Initiative in Latin American Cities (CAI-LAC), an active network of information exchange, capacity building, and knowledge creation among Latin American cities in the area of air quality in general, and transportations contribution in particular. The Bank continues to remain involved and engaged in the CAI-LAC, even while it restructures to become more responsive to the evolving needs of its members. Another key element of the strategy envisioned by the STAQ program is the creation of a critical mass of cities around the Latin America and Caribbean region engaged in progressive sustainable transportation policy at the same time, creating synergies of efforts that helps create Page 3 visibility and political support, while reducing the learning curve for innovation. To do so, however, requires engaging cities on a scale that the World Bank is uniquely in a position to accomplish. The third component of the present project – a transversal component that involves information exchange and development and dissemination of measurement methodologies – requires mobilization of participation by stakeholders across Latin America and the Bank is in a unique position to facilitate such participation. Because of the Bank’s participation, therefore, it is believed that the STAQ program will lower the costs of development of sustainable urban transport strategies and interventions throughout the region, even for cities that are not receiving funding under this round of the proposed program. 2. Proposed objective(s) 1) To help reduce the amount of carbon dioxide and air pollutants emitted in specific Latin American cities by facilitating the use of public transportation and non-motorized modes, as well as planning for physical investments and regulatory frameworks that reduce the need for excessive movement of people and goods; 2) Facilitate the ability of policy makers, civic leaders, and technical staff in cities to envision and articulate a sustainable transport vision adapted to local conditions, and to identify concrete and measurable steps to move toward that vision; and 3) Facilitate the ability of cities to share knowledge, information, and methodologies relevant to their development of sustainable transport visions. 3. Preliminary description The project is structured in two components. Component 1 consists of pilot investments, technical assistance, and capacity-building activities in 22 cities in 9 countries. Component 2 consists of regional (cross-cutting) technical assistance activities that are applicable to and will benefit the region’s cities as a whole. See Annexes 4 and 19 to find specific details on the proposals. 3.1 Component 1: Pilot investments, technical assistance, and capacity building activities in select cities ($37,663,200) 1 This component is formed by 3 sub-components. Sub-component 1.1 consists of pilot investment and technical assistance on a range of activities to 15 cities , based on proposals submitted during a regional competition held in late 2005 and early 2006. Sub-component 1.2 consists of limited pilot investments in 4 cities. For both of these sub-components, activities funded fit into the five “windows”, or areas of intervention. These windows include freight management, integration of land-use planning with transport and environmental management, modal interconnection and improved effectiveness and efficiency of public transport, non- motorized transport, and travel demand management. Sub-component 1.3 consists of capacity- building grants to 3 selected cities which will help develop proposals into the next phases. In total there will be funded activities in 22 cities or metropolitan areas in 9 countries. 1 See Annex 4 for a detailed relation of activities in each city under each of the Windows or areas of intervention Page 4 3.1.1 Sub-component 1.1. This sub-component will provide direct funding to 15 cities or urban centers in 8 countries. The activities funded in this sub-component fit into the five windows or areas of intervention as follows: · Window 1: Freight management. Activities in 3 cities for a total of 707,000. · Window 2: Integration of Land Use Planning, Transport Management and Environmental Management. Activities in 9 cities for a total of $5,347,000. · Window 3: Modal Interconnection and improved effectiveness and efficiency of public transport. Activities in 13 cities for a total of $15,366,792. · Window 4: Non-motorized Transport. Activities in 12 cities for a total of $12,038,597. · Window 5: Travel demand management. Activities in 6 cities for a total of $2,002,000. 3.1.2 Sub-component 1.2. This sub-component will provide direct funding to 4 cities in 3 countries. The activities funded in this sub-component fit into NEED TO GET THIS INFORMATION windows. These windows include: · Window 1: Management of freight transport. Activity in 1 city for a total of $120,000. · Window 3: Modal Interconnection and improved effectiveness and efficiency of public transport. Activities in 4 cities for a total of $1,044,000. · Window 4: NMT activities in 2 cities for a total of $305,000. 3.1.3 Sub-component 1.3. This sub-component will provide direct funding to 3 cities in 3 countries. The activities funded in this sub-component will focus on institutional strengthening and capacity building for future developments in the different windows. Specific activities fall mostly under Window 2, and are of cross-cutting nature, although in general are related to the integration of BRT with other modes, to the creation of local authorities on mobility, and to the development of master plans and strategies. Final details will be ready prior to project appraisal. 3.2 Component 2: Technical Assistance and Institutional Strengthening at Regional Level ($2,336,800) This component is formed by 5 sub-components consisting of cross-cutting activities and technical assistance to help leverage the region’s capacity to tackle sustainable transport and energy efficiency, while reducing GHG emissions and air pollution. The component will fund training, development of methodologies, activities to measure impact of other components, dissemination, and cross fertilization. The role of the Clean Air Initiative Center and other existing entities already engaged in promoting sustainable transport and air quality in the region will be key in the implementation of this component. One key activity to fund through this component is the overall supervision, and reporting, of all 22 sup-projects funded by Component 1. 3.2.1. Sub-component 2.1.($650,000) This sub-component will fund the development of an internationally recognized methodology for estimating reduced GHG and air pollutants as a Page 5 result of sustainable transport measures. Key players in promoting sustainable transport in the region and worldwide will be invited to take part of this development. Case studies from selected cities will help add data to illustrate impact of specific sustainable transport activities falling within the project windows or areas of intervention. Workshops and toolkits will be produced. 3.2.2. Sub-component 2.2.($675,000) This sub-component will fund a program to build capacity at the regional level through training courses directed to sustainable transport, including the following topics: integrated urban development; transport and environment planning; mobility management; cycling, walking and inter-modality; and freight transport. Workshops, virtual courses, and toolkits will be produced. 3.2.3. Sub-component 2.3($360,000). This sub-component will foster policy dialogue, not only at a cross-regional level, but also at the local level, to ensure that federal or national governments, and the regional jurisdictions share and work together towards common sustainable transport objectives, including the introduction of efficient technologies, and cleaner fuels. The link to air quality and the co-benefits arising from measures addressed to reduce fuel consumption per trip per person will be discussed at national, and international fora. Most cities engaged in rationalizing and renovating their transport systems normally do not coordinate with the national and federal efforts to improve fuels, or to generate energy security in the long-term. Also, policies aimed at reducing air pollution at local level require a better coordination with other layers of government, and sectors to ensure compliance and results. 3.2.4. Sub-component 2.4.($651,800) This sub-component will fund activities to monitor the implementation of the project, conduct general audits, ensure adequate and prompt reporting, and to allow public participation at all levels. 4. Tentative financing Source: ($m.) BORROWER/RECIPIENT 42 Global Environment Facility (GEF) 20.8 Local Sources of Borrowing Country 0 Total 62.8 5. Safeguard Policies (including public consultation) Safeguard Policies Triggered by the Project Yes No Environmental Assessment ( OP / BP 4.01) [x] [ ] Natural Habitats ( OP / BP 4.04) [ ] [x] Pest Management ( OP 4.09 ) [ ] [x] Cultural Property ( OPN 11.03 , being revised as OP 4.11) [ ] [x] Involuntary Resettlement ( OP / BP 4.12) [ ] [x] Indigenous Peoples ( OP / BP 4.10) [ ] [x] Forests ( OP / BP 4.36) [ ] [x] Safety of Dams ( OP / BP 4.37) [ ] [x] Projects in Disputed Areas ( OP / BP 7.60) * [ ] [x] * By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas Page 6 Safeguard Policies Triggered by the Project Yes No Projects on International Waterways ( OP / BP 7.50) [ ] [x] The project has been categorized as “B”, as it will involve minor civil works to insert bikeways, busways, improve existing street infrastructure (landscaping, modal segregation, traffic signs and signals) and assist in building multi-modal terminals. Almost all civil works under the project will follow the alignments of existing roads and right of way. Construction will cause some minor and localized negative environmental impacts. Such impacts are expected to consist essentially of noise, vibration, dust, and traffic disruption. Additional negative impacts during construction will occur due to haulage and final disposal of materials from the construction sites. An environmental assessment will be prepared for all civil works under the project. The EA will also include screening for the presence of natural habitats and any potential impacts caused by the project. An Environmental Management Plan will be prepared to address all environmental impacts identified, including specific procedures for environmental screening and management, responsibilities (institutional and individual) and budget to ensure adequate implementation. These provisions, or reference thereto, should also be included in all contract documents. The EMP will also include, if necessary, measures to minimize, mitigate and compensate for the possible impacts on natural habitats and cultural property. The project does not include any involuntary resettlements. The GEF resources will complement counterpart investments in civil works where resettlement issues are neither present nor potential. Nevertheless, the involuntary resettlement policy is triggered due to possible land acquisition; physical displacement (such as households located along the right-of-way) or economic displacement (such as street vendors within the right-of-way), adequate resettlement policies and procedures will be prepared and borrowers will be required to disclose information in accordance with the Bank’s policies. The Environmental and Social Management Framework (ESMF) will include specific procedures and an abbreviated resettlement framework and public participation framework. 6. Contact point Contact: Paul Procee Title: Environmental Spec. Tel: (202) 458-2472 Fax: Email: pprocee@worldbank.org