INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: ISDSC259 Public Disclosure Copy Date ISDS Prepared/Updated: 02-Dec-2011 I. BASIC INFORMATION A. Basic Project Data Country: Armenia Project ID: P126722 Project Name: Municipal Water Project (P126722) Task Team Leader: Ahmed A. R. Eiweida Estimated Appraisal Date: 17-Jan-2012 Estimated Board Date: 13-Mar-2012 Managing Unit: ECSS6 Lending Instrument: Specific Investment Loan Sector: Water supply (80%), Public administration- Water, sanitation and flood protection (20%) Theme: Urban services and housing for the poor (65%), Rural services and infrastructure (35%) Financing (In USD Million) Financing Source Amount Borrower 3.00 International Bank for Reconstruction and Development 15.00 Total 18.00 Environmental Category: B - Partial Assessment Is this a Repeater project? Yes B. Project Objectives The Project Development Objective is to support improvement of the quality and duration of water supply services in selected areas of the Armenia Water and Sewerage Company's (AWSC) Service Area. C. Project Description The design of this repeater Project is to a large extent similar to the original Municipal Water and Wastewater Development Project (MWWP), Public Disclosure Copy which is scheduled to close in December 30, 2011, with satisfactory PDO and implementation rating. The proposed Municipal Water Project (MWP) will replicate the MWWP activities in three other cities, install modern water meters throughout the AWSC Service Area, and scale up the institutional development and sustainability measures. Similar to the successful design and implementation modality of the MWWP, the proposed MWP will have the same three components: Component 1: Investments in Water Supply Systems (WB: $8.6m; Borrower: $1.72m): This component will finance: design, implementation and supervision of the rehabilitation of water systems in the cities of Masis, Echmiadzin, and Ashtarak, including their neighboring settlements. The rehabilitating works will include rehabilitation of networks linked to operation efficiency and reduction of non-revenue water. The main goal of the investments under this Component is to finance physical infrastructure that is technically sound, cost effective, reliable and reduce technical losses. Component 2: AWSC Investments (WB: $1.8m; Borrower: $0.36): This component will finance: (i) water meters replacement and installation of meter chambers in several cities and villages throughout the AWSC Service Area to reduce commercial losses; (ii) automation of pumping stations and reservoirs; and (iii) procurement of equipment and machinery for improved Operation & Maintenance system of AWSC. Component 3: AWSC Management Strengthening (WB: $4.6m; Borrower: $0.92): This component will finance: (i) a two years fee of the enhanced management contract to improve AWSC administration, operations, maintenance, and to ensure optimal implementation of program's investment funds; (ii) technical studies, project management and monitoring, including independent technical audits and financial audits. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The project will be implemented in the towns of Masis, Echmiadzin, Ashtarak, and the neighboring regional settlements. E. Borrowers Institutional Capacity for Safeguard Policies The AWSC will be responsible for respecting the national environmental legislation and the World Bank safeguard policies in the course of the project implementation. AWSC has been implementing projects financed by several multilateral organizations and its track record in applying environmental standards satisfactory to the donor institutions has been good. The AWSC capacity for implementing safeguards relies on the services of an individual consultant financed from another donor-supported operation. This capacity needs reinforcement in light of the additional requirements of the proposed new project. An assistant to the environmental officer will be hired under the MWP for the duration of this project. F. Environmental and Social Safeguards Specialists on the Team Darejan Kapanadze (ECSS3) Chukwudi H. Okafor (ECSS4) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered Yes No TBD Explanation Public Disclosure Copy Environmental Assessment OP/BP 4.01 ✖ The project will not finance construction of a new infrastructure and all civil works will be performed on the existing water supply schemes. The proposed interventions will not increase water intake from the natural water bodies, while they will help to decrease water loss through the leakages. Therefore, the project is rated environmental Category B. The Environmental Management Framework (EMF) prepared in 2004 for the MWWP and revised for the AF to MWWP in 2008 will be updated for the purposes of the proposed MWP. Once the detailed designs for the MWP work program are available, the client will be required to develop site-specific Environmental Management Plans (EMPs) for the intended three geographic areas of the project intervention. EMF will be re-disclosed prior to the project appraisal and the site-specific EMPs will be disclosed and consulted upon with the affected communities prior to commencement of works at each individual project site. Implementation of the ongoing MWWP has proven that if environmental monitoring is integral to close technical supervision of works, contractors generally follow EMPs or respond to outstanding issues flagged by supervisors. AWSC will be required to review and approve site-specific EMPs developed by consultants and to maintain arrangements for supervision of their implementation satisfactory to the Bank throughout Project implementation. AWSC will also be responsible for documenting findings of regular environmental monitoring and works and sharing such documents with the Bank for review and quality control. 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 ✖ Public Disclosure Copy Safety of Dams OP/BP 4.37 ✖ Projects on International Waterways OP/BP ✖ The proposed interventions do not cover water supply systems 7.50 which extract and transporting water from the international water bodies or their tributaries. Furthermore, planned rehabilitation works will not increase water intake, while they will help to decrease water loss through addressing leakage issue (networks rehabilitation). Hence no change in the quality and/or quantity of water may be experienced downstream of the project area as a result of the project implementation. Projects in Disputed Areas OP/BP 7.60 ✖ III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 17-Jan-2012 B. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing1 Public Disclosure Copy should be specified in the PAD-stage ISDS: EMF will be updated for the purposes of the Project and re-disclosed prior to the project appraisal. Once the detailed designs for the work program are available, the site-specific EMPs for the individual investments will be prepared, disclosed, and consulted upon with the affected communities prior to commencement of works at each project site. IV. APPROVALS Signed and submitted by: Task Team Leader: Name: Ahmed A. R. Eiweida Date: 02-Dec-2011 Approved By: Regional Safeguards Coordinator: Name: Agnes I. Kiss (RSA) Date: 06-Dec-2011 Comments: Sector Manager: Name: Stephen George Karam (SM) Date: 02-Dec-2011 Comments: Thanks Ahmed. The revised ISDS looks fine. Public Disclosure Copy 1 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.