Page 1 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 04/20/2011 Report No.: AC6207 1. Basic Project Data Original Project ID: P072030 Original Project Name: Urban Development Project Country: Chad Project ID: P123501 Project Name: Additional Financing Urban Development Project Task Team Leader: Jan Drozdz Estimated Appraisal Date: April 13, 2011 Estimated Board Date: June 7, 2011 Managing Unit: AFTUW Lending Instrument: Specific Investment Loan Sector: Water supply (85%);Flood protection (15%) Theme: Access to urban services and housing (100%) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): 27.40 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 0.00 0.00 Environmental Category: B - Partial Assessment Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and Emergencies) Yes [ ] No [X] 2. Project Objectives The project development objective will remain the same as for the original project, i.e. to increase sustainable access to municipal services for residents in targeted projected cities (N'Djamena, Moundou, Sarh, Abeche and Doba). 3. Project Description The design and scope of the proposed Additional Financing will reflect the objectives of the project, namely (i) the completion of drainage and water infrastructure in Moundou, Sarh and Abeche and (ii) the scaling up of the impacts of the project with a focus on increasing sustainable access to water services by funding additional investments in water supply infrastructure, a Service Contract with a private operator, and by enhancing social accountability to improve the performance and governance of the recently established national water utility STE (Societe Tchadienne des Eaux). The project will support expanded activities under Components A and B of the original project as well as new activities under an added Component C as summarized hereafter. Page 2 Component A: Strengthening municipal and urban management capacities (US$0.90 million) Component A.2: Strengthening the capacity of the central administration and deconcentrated ministries to support the municipalities (US$0.90 million). Under this component, the project will finance the operating costs of the PADUR Implementing Agency (CCP) for three additional years. Component B: Provision of basic infrastructure and services (US$15.25 million) Component B.1: For the city of N'Djamena (US$8.57 million). Under this component the project will finance the construction of new storage tanks and pumping station, the construction and equipments of boreholes, the extension of the water distribution network and the procurement of connection fittings to expand piped water services. Components B.2, 3, 4: For the city of Moundou ($1.04 million), Sarh (US$1.66 million), Abeche (US$1.60 million). Under this component the project will finance the completion of drainage and water supply works funded under the original project but facing cost overruns. Component B.6: M&E, studies, supervision of works and audits (US$2.38 million). Under this component, the project will finance, for the works funded under Component B: (i) the preparation of engineering studies and bidding documents, (ii) the preparation of environmental/social studies, (iii) supervision of the works; this component will also finance (iv) the preparation of a medium-term investment plan covering the 11 cities and towns where the STE operates, (v) financial audit of the project, (vi) the update of the project implementation and procedures manuals, (vii) Master Plan for N'Djamena water supply. Component C: Strengthening sustainable access to urban water services (US$11.25 million) Component C.1: Service Contract (US$5.00 million). Under this component, the project will finance a 3-year performance-based Service Contract with a private operator to improve the technical, commercial, financial performance and accountability of the STE. Component C.2: Operating and rehabilitation fund (US$5.45 million). Under this component, the project will finance the procurement and replacement of meters, the rehabilitation of networks, connections and boreholes, the procurement of equipment for a call center, a customer census and update of the customer database, a communication campaign, a customer satisfaction survey and the set-up of a Geographical Information System. Component C.3: Technical assistance for the recruitment and supervision of the private Operator (US$0.30 million). Under this component, the project will fund technical assistance for the preparation of bidding documents and data room for the Service Contract, for the management of the recruitment process of the private Operator and for the technical audit of the performance of the private Operator. Component C.4: Technical assistance for the financial sustainability and formation of the STE (US$0.50 million). Under this component, the project will finance (i) a tariff study, (ii) technical assistance for the design and implementation of a mechanism of payment of public institutions bills, (iii) technical assistance for the completion of the legal, financial and organizational formation of the STE. Page 3 4. Project Location and salient physical characteristics relevant to the safeguard analysis N'Djamena, Moundou, Sarh, Abeche and Doba. 5. Environmental and Social Safeguards Specialists Ms Lucienne M. M'Baipor (AFTCS) Mr Emeran Serge M. Menang Evouna (AFTEN) 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 Physical Cultural Resources (OP/BP 4.11) 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: From an environmental and social safeguards standpoint, the Urban Development Project - Republic of Chad is a Category B project. That is, the environmental and social impacts of the project, for the most part, are expected to be minimal, site-specific and manageable to an accepted level. There are two Bank Safeguard policies triggered under the project. These include: Environmental Assessment (OP 4.01) and Involuntary Resettlement (OP 4.12) which are triggered for the original project. The two environmental safeguards instruments prepared by the original project are the Environmental and Social Management Framework (ESMF) and the Resettlement Policy Framework (RPF). The original project is rated satisfactory in terms of overall safeguards compliance for both environmental and social (Involuntary Resettlement) safeguards. The ESMF and RPF were disclosed to the public within the country on June 7, 2006 and at the World Bank Info shop on June 16, 2006. The project development objective will remain the same as for the original project and the project will support expanded activities under the components A and B of the original project as well as new activities under an added component C which is to strengthen sustainable access to urban water services. None of the additional activities included in the proposed additional financing affect the environmental category of the Project, which remains at Category B. Page 4 No new safeguard policies are triggered. Given the contemplated additional financing, the ESMF and RPF have been updated to take into account the new activities and were disclosed at the Bank's InfoShop and in-country on April 11, 2011. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: No long-term adverse impact is anticipated. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Not applicable. 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 line with the triggering of the two operational policies cited above and because of the lack of site-specific information about the environmental and social characteristics of future investments in the additional financing, the Project updated the two safeguards instruments, namely the Environmental and Social Management Framework (ESMF), and the Resettlement Plan Framework (RPF) prepared for the original project. The ESMF and RPF set out standard methods and procedures, specifying how sub- projects, whose locations are unknown at this stage, will systematically address environmental and social issues at all stages. These include: sub-project screening, categorization, sitting, design, implementation, operational, and maintenance. At the core of this approach are: (i) the systematic screening of all sub-projects; (ii) procedures for applying the environmental checklist or for conducting ESIAs/ESMPs and RAPs - whichever or combination of which is deemed applicable - for all identified sub-projects, (iii) institutional arrangements for mitigating, preventing, and managing the identified impacts; (iv) typical environmental management planning process for addressing negative externalities in the course of project implementation; (v) a system for monitoring the implementation of mitigation measures; (vi) environmental and social environmental clauses to be inserted in the bidding documents; and (vii) recommended capacity building measures for environmental planning and monitoring of project activities. Like the ESMF, the RPF also outlines the principles and procedures for resettlement and/or compensation of subproject-affected people, and establishes standards for identifying, assessing and mitigating negative impacts of program supported activities. In addition, the RPF will guide the preparation and implementation of resettlement action plans (RAPs) for each individual sub project that triggers the involuntary resettlement policy when needed. Specific ESIAs will be prepared for relevant activities before project implementation along with Environmental Management Plans (EMPs). All two safeguard documents will be reviewed and cleared by the Sector Manager before appraisal as the safeguard responsibilities of the project is transferred to the Sector Unit. Page 5 The Project has an environmental and social specialist who dealt with the implementation of the previous ESMF and RPF. He also helped in the preparation of an Abbreviated Resettlement Action Plan (ARAP) for the sub projects of the original project. In addition of the existing institutional arrangements under Urban Development Project, the STE will be reinforced by an environmental and social staff for a day by day follow up of mitigation measures regarding the additional funding focusing on STE with the main objective to create a long term culture of environmental and social management concerns in this newly created company. The environmental and social staff within STE will be hired during the general recruitment of STE staffing process and no later than July 1, 2012. The Project resources will be used to provide relevant training to this staff. The STE has been constituted at the initiative and by decision of its sole shareholder, the Government of Chad, after dissolution of the national water and electricity utility (STEE). At the time of the Government's decision to dissolve STEE, the Government also took the initiative to prepare and finance a social plan that would benefit all STEE staff. However, the Bank's involvement has not been sought in such decision nor the implementation thereof. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The ESMF and the RPF for the original operation have been prepared according to Bank and national safeguard policies, following a consultation framework, involving relevant stakeholder groups, both public and private, as well as in civil society and local communities, municipalities consistent with the approach adopted at project inception. During the project implementation, the consultation process used during the implementation of Urban Development Project will be reinforced by ensuring that during the preparation of all safeguards documents, all main stakeholders ,as listed above, are consulted and all environmental and social screening forms and alone EAs when applicable are publicly disclosed. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 04/04/2011 Date of "in-country" disclosure 04/11/2011 Date of submission to InfoShop 04/11/2011 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 04/04/2011 Date of "in-country" disclosure 04/11/2011 Date of submission to InfoShop 04/11/2011 Indigenous Peoples Plan/Planning Framework: Page 6 Was the document disclosed prior to appraisal? N/A Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop * If the project triggers the Pest Management and/or Physical Cultural Resources, 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 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Sector Manager (SM) 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/policy framework/process framework (as appropriate) been prepared? Yes If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? 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 been prepared for the implementation of measures related to safeguard policies? Yes 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 Yes Page 7 borrower and the same been adequately reflected in the project legal documents? D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Jan Drozdz 04/20/2011 Environmental Specialist: Mr Emeran Serge M. Menang Evouna 04/20/2011 Social Development Specialist Ms Lucienne M. M'Baipor 04/20/2011 Additional Environmental and/or Social Development Specialist(s): Approved by: Sector Manager: Mr Junaid Kamal Ahmad 04/20/2011 Comments: The SMU has agreed to accept transfer of the safeguard responsibilities (ASPEN has confirmed that this can remain a category-B, transferred project).