Page 1 · PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: AB4663 Project Name GEF 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 P114012 GEF Focal Area Climate change Borrower(s) MEXICO GOVERNMENT Implementing Agency SEDESOL: Av. Paseo de la Reforma 116, Col Juárez Del Cuauhtémoc, C.P. 06600, México, D.F. Tel: 53 28 5000 BANOBRAS: Av. Javier Barros Sierra No. 515 Col. Lomas de Santa Fe. México D.F. Tel: 5270-1200 Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared March 30, 2009 Date of Appraisal Authorization March 6, 2008 Date of Board Approval October, 2009 1. Country and Sector Background Climate Change and Urban Transport Nexus 1. The transportation sector is currently responsible for more than one-third of the carbon dioxide (CO 2 ) emissions in Latin America, and is one of the fastest growing sectors for emissions. The International Energy Agency projects that CO 2 emissions from vehicles will increase by a factor of 2.4 (or 140%); from about 4.6 gigatons in year 2000 to 11.2 by year 2050. The vast majority of this increase will take place in developing regions of the world, especially Latin America and Asia, as a result of increased motorization and vehicle use. 2. Urban transport represents a key sector for long-run GHG mitigation efforts. Latin American cities are rapidly growing and about 75% of the people currently live in urban areas, thereby concentrating most of the vehicle kilometers of travel (VKT). The increasing use of motor vehicles not only generates additional GHG emissions, but also results in growing air pollution and associated health impacts, increased congestion, more accidents and reduced competitiveness of cities. 3. While most cities still have a considerable share of walking and public transport trips, car ownership and use is expected to continue increasing in tandem with economic and population Page 2 · growth. In addition, cities in Latin America are expanding and sprawling rapidly as the mobility needs are being primarily satisfied by a growing reliance on motorized vehicles and poor public transit systems, further increasing emissions and reducing energy efficiency. The poor are most affected as they rely on public and non-motorized transport, while investments are increasingly directed toward the wealthier car users. 4. Mexico is part of this regional trend, and moreover, is one of the more urbanized countries in Latin America. Over 75 percent of its total population lives in metropolitan areas and cities. Despite its high degree of urbanization, Mexico is still experiencing a significant rate of growth in its urban population. Between 1990 and 2007 urban areas grew from 60 million to 67 million inhabitants (1.57 percent per year). Today 30.6 million people, or almost 30 percent of the country’s population, are concentrated in the main metropolitan areas of Mexico (Mexico Valley, Guadalajara, Monterrey, Puebla, and Toluca). Population densities are high with nearly 5,799 people per km 2 in Mexico City (D.F.) Sound urban transport management is critical for meeting the growing transport needs of the fast growing regions of Mexico. 5. The cycle of increasing population, growing motorization, inadequate streets and traffic management, together with increasing congestion and air pollution is evident in many cities. Partly as a result, the public transportation is losing share and there are more frequent calls for governments to address these issues, some of which are summarized below and discussed in Annex 1. 6. Poorly organized public bus transport. The traditional business structure of bus services in most Mexican cities has led to highly inefficient operations, resulting in costly, unsafe and environmentally unsustainable public transport systems. The key issues are: (a) lack of an organizational model that would facilitate efficient public transport operations; (b) dispersed operations that hinder the effective control of bus services and contribute to traffic congestion; (c) inefficient use of vehicles and a proliferation of old, polluting micro-buses; (d) deficiencies in bus inspection and maintenance; (e) lack of professional management among bus operators; (f) lack of coordination between transport operators and local governments; (g) fare systems that penalize transfers and thus discourage inter-modal transfers and (h) lack of route planning according to new urban trip patterns (motorized and non-motorized). 7. Inadequate service quality of urban public transportation. The transport services provided by the various operational entities are neither physically nor operationally nor financially integrated, resulting in reduced transport system efficiency. There are a few exceptions, such as Mexico City (D.F.), Leon and Monterrey, which are implementing integrated transport systems and strengthening and modernizing transport operators. Nevertheless, the urban transportation in the cities is characterized by substantial negative impacts and externalities, such as congestion, accidents and pollution. 8. Limited institutional capacity: Several cities have shown improvements under the First Medium Cities project as considerable resources were dedicated to training and institution building. This was especially true for the cities that developed good planning institutions (Leon, Ciudad Juarez and Monterrey) and could retain a cadre of experienced staff despite the high turnover of municipal administrations. However, for the majority of cities, there is still a large Page 3 · unfinished agenda that needs to be addressed, particularly the strengthening of planning units, establishment of transport corridor management entities, and the legal and administrative changes that would allow municipalities to manage both transport supply (streets, etc) and demand (car use restrictions); currently the latter is primarily the responsibility of the State Government. 9. For many cities, the responsibility for transport and traffic regulation, traffic engineering, traffic law enforcement, and short and medium range land use/transport planning is divided among agencies at the state and municipal levels, or between different departments within individual agencies or even between different municipalities within the same metropolitan area, as seen in Monterrey and Puebla. This division sometimes results in agencies with varying interests and responsibilities having to share responsibility for a major transport project. An additional complicating factor arises from the fact that the project cycle for such projects is usually much longer than the administrative term of elected officials who have to ‘champion’ the said project. 10. Air pollution is a major health and environmental concern in several cities. The number of vehicles in city centers is typically very high, given the available infrastructure, resulting in congestion, excessive fuel consumption and high levels of emissions. In spite of technological improvements in fuel compounds and fulfillment of an environmental legal framework, mobile sources account typically for 52% of NO x emissions, 40% of HC emissions and about 36% of particulate emission according to recent emission inventories. The transport sector is also the largest generator of methane (CH4) and volatile organic compounds (VOCs). Air pollution is mostly due to (a) a high concentration of ozone, produced by the reaction of VOCs and NO x in the presence of sunlight; (b) carbon monoxide (CO), NO x , sulfur dioxide (SO2) and hydrocarbons emitted by vehicles fueled with gasoline and diesel; (c) sulfur dioxide emitted by industrial processes and commercial services using liquid industrial fuels; and (d) particulate matter (PM) in the form of particles smaller than 10 microns (PM 10 ) emitted by stationary and mobile sources using diesel and other fuels. 11. Addressing the plethora of urban transport issues will provide the platform needed to deal with global issues such as mitigating Mexico’s level of emissions of GHG. In the case of the transport sector, it will be important to mainstream environmental concerns into sectoral policies, programs, and investments. By working closely with the different subsectors and stakeholders, GHG emission reductions can be achieved in the long run, while ensuring other developmental goals for which there is a pressing need. Opportunity for sustainable transport and sound land-use planning 12. There is still a chance to address the trend towards the increasing use of unsustainable, energy-intensive transport modes in Latin America. Despite the rapid growth in vehicle numbers, most Latin American cities are not yet locked into an absolute automobile dependence pattern. The current car ownership level of around 100 vehicles per 1,000 inhabitants in Latin America is low compared to OECD standards and provides a great opportunity for enhancing modal split by seeking policies and measures to reduce growth of private vehicle use in cities and to create incentives for public and non-motorized transport. Page 4 · 13. Even though Mexico’s urbanization and motorization rates are growing rapidly, public transport and alternative modes still play a significant role in providing transport. This gives ample space to design sound long-term policies that reinforce the natural link between land use, transport, and environment, guiding urban growth towards more sustainable patterns. 14. Given the country’s federal nature, each State has its own constitution and regulatory framework. In most of the cities, the State Government retains responsibility for the technical and regulatory role in the transport sector, including environmental aspects. The responsibilities for urban planning, transit, and road investments are shared between the state and municipal level. This arrangement is very common, including for the four cities (Ciudad Juarez, Leon, Monterrey, Puebla) participating in the project. Recent experiences under the past Bank projects for urban transport improvements in Mexico have led to a strengthening of the role of the Municipal Planning Institutes (Institutos de Planeamiento Municipal – INPLAM) in the coordination and formulation of urban planning policies and in implementing strategic transport improvement plans for several cities. 15. In the case of the most important metropolitan areas, it is necessary to continue fostering the participation and synergies between municipalities, states and the federal government in the provision of investment funds and the management of urban transport. In the case of Leon and some other cities, public transport has been delegated to the municipalities, but this is an exception rather than the rule. 16. According to the regulatory framework at the state and federal levels, air quality policy is the responsibility of both the municipalities and the Natural Resources and Environmental Secretariat of each state. It is important to mention that in recent years, some important air quality programs have been implemented. However, it is still necessary to dedicate more resources and efforts to encourage sustainable transport policies in the cities with the highest negative impacts due to GHG emissions. Strategic Approach 17. The GEF will co-finance studies, technical assistance and some pilot investments that are part of comprehensive urban transport and land-use policies, programs and plans aimed at promoting climate-friendly transport. No civil works are included in the project. The regional approach should foster the development of a critical mass of cities so a greater impact is obtained, but at the national and municipal level decision makers and professionals should focus on fully developing sustainable transport policies to broaden the reach and impact of GEF investments. 18. Unlike other Latin American countries such as Colombia, Chile, and Venezuela, since the decentralization of the 1980s Mexico has seen urban transport largely as a sector that lies outside the sphere of direct action by the National Government. This policy is at odds with the sector’s widely acknowledged externalities and impacts both in terms of poverty reduction and competitiveness. Experiences in other sectors in Mexico such as housing, water and sewerage have shown that although decentralization of expenditures and operation are desirable, there is Page 5 · still a need for federal support and financing to help optimize the design and implementation of strategies and policies. 19. Therefore, an associated goal of the project’s climate change dimensions will be to promote country-wide interventions in the sector, to foster cross-fertilization between cities and the design of national policy guidelines in urban transport, land use and growth patterns and air quality, while laying the groundwork for deeper interventions through a follow up Bank project, UTTP –Urban Transport Transformation Project - that is now under preparation. Barrier Removal 20. The project will address the most common barriers at city and national levels for the promotion of sustainable transport already identified in Latin America, and others specific to Mexico. 21. In Mexico, some cities have qualified technical staff in their urban transport and environmental agencies, and have implemented clean air programs 1 with the support of the World Bank and other multilateral donor institutions, and with the active participation of Universities and related urban organizations (sometimes called Urban Observatories). However, there is still a need to improve capacity in cities across the country. 22. The project cities are aware of their weaknesses in these issues and the GEF participation in their urban transport interventions will contribute to the development of their technical capacity in the sector. The project has considered the establishment of technical teams drawn from municipal and INPLAM technical capabilities. For example, in Monterrey, the corresponding subproject will be implemented by the State Council for Road Transport and the municipalities in the metropolitan area, while in Leon it will be executed through INPLAM and the Municipality. 2. Objectives 23. The Mexico GEF Sustainable Transport and Air Quality Project (STAQ) serves as an example of how cities can tackle environmental problems and implement sustainable transport policies, which at the same time builds on a larger Regional Program consistent with the GEF Policy. This program is framed within the Clean Air Strategy for Latin American Cities established by the World Bank in 1998. Its mission is to improve air quality and to mitigate climate change to protect people’s health and to improve quality of life in the cities. 24. The larger regional project will support Clean Air Strategies in three important countries of the Region (Mexico, Brazil and Argentina), and support the implementation of policies, programs and projects at the national, regional and local levels aimed at improving air quality and reducing GHG emissions through the modernization of urban transport. 1 Tijuana, Ciudad Juarez, Mexicali, Metropolitan Area of Guadalajara, Metropolitan Area of Monterrey, Toluca, Valley, Salamanca, Mexico Valley, Metropolitan Area of Puebla Valley Page 6 · The preparation approach followed has ensured that the project: (a) is country-driven and supports governments’ efforts to promote sustainable development; (b) strives to leverage other funds; and (c) demonstrates cost-effectiveness of different measures to reduce GHG emissions associated with transport. The project aims at achieving a reduction of GHG emissions growth rates through interventions in sustainable, more efficient modes of transport. To this end, the project would support studies and pilot interventions to: (a) regulate freight transport; (b) integrate urban land use and transport planning; (c) induce sustainable transport policies, and programs in Mexican cities that contribute to a long-term increase in patronage of more efficient modes of transport; (d) target research for environmental assessment (both local and global) of transport and land-use measures; (e) pursue political dialogue engaging different actors dealing with transport, land-use, and environment matters at all levels of government; (f) foster a national and regional common approach to sustainable transport, articulating land-use planning, and air quality policies; and (g) create a network of Latin American cities to allow sharing of regional experiences, enhance the analytical tools available at the institutional level, and make them available to all interested cities. 3. Rationale for Bank Involvement 25. The Bank’s involvement in the urban transport sector is a response to the challenges raised by the rapid growth of Latin American cities, and by the need for a coordinated effort to address urban transport and environmental issues at the regional level and to ensure that Latin American cities are well-positioned to meet the demands of an increasingly global economy. The World Bank supports projects that aim at reducing transport costs – not only in a financial sense, but in terms of time and environmental damage as well – and increasing transport efficiency, enhancing urban productivity, competitiveness and contributing to the region’s overall economic growth. By acting on several fronts such as public transport enhancement, freight management, coordination of public sector policies in land use and transport planning, promotion of environment-friendly transport solutions such as non-motorized transport, traffic demand management, the project aims to reconcile mobility needs with quality of life and global and local environmental sustainability. It is also a partial response to some of the more intractable problems associated with urban poverty, not only in terms of access to economic opportunity, but also in terms of the broader dimensions of social inclusion through improved access to schools, health facilities, and wider social interaction. 26. The World Bank has a long and proven track record and in-house expertise in the design and implementation of transport, urban development, and environmental projects. Its presence in different sectors and various Latin American countries, including Mexico, provides a unique perspective which allows replication of good practices, while drawing from lessons learned and experience. For example, in Brazil, Colombia and Peru, the Bank has financed projects for supporting the implementation of Bus Rapid Transit (BRT) systems aimed at improving public transport services. In Bogota, the Bank financed partially the first phase of Transmilenio, and the second phase of the feeder routes system as well as a project for BRTs in five Colombian cities. The Bank’s experience in the sector will be instrumental to assisting Mexico and the cities to improve their urban transport systems. Page 7 · 27. In the case of Mexico, between 2003 and 2006, the Bank supported the design and implementation of a BRT system for Mexico City under the Introduction of Climate Friendly Environmental Measures Project financed by a GEF grant. Also, the Bank is supporting the government of Mexico in designing and implementing the Urban Transport Transformation Project (UTTP), which incorporates CIF and IBRD financing. The UTTP seeks the transformation of the urban transport sector in Mexico by improving efficiency and guiding the sector along a low-carbon development path. The UTTP also includes developing and strengthening urban transport institutions, as well as financing and implementing urban transport projects such as BRT, among other project components. Finally, Both the Mexico GEF project and the Regional GEF program would present synergies with the mentioned Strategy, by facilitating the exchange of information, lessons and experiences between the different cities participating in the program 28. At this time, there are several ongoing operations that are linked directly or indirectly to the GEF goals, and can contribute to building sounder foundations for tackling transport and environmental challenges. In the Urban Transport Sector, as said, the Bank and the Government of Mexico, the project cities, and other cities are currently preparing the UTTP. 4. Description 29. Technical assistance and capacity building activities in selected cities (US$5,378,000): 2 The Mexico sub-program and the specific city-projects will co-fund measures in four thematic windows, following the cities’, Bank’s, and GEF priorities for climate change mitigation in the urban transport sector 3 . Activities within each window are confined to studies and preparations; no works are being funded. A detailed description of each window, with details by city, can be found in Annex 4. 30. Window 1: Freight Management. This window includes studies and technical assistance to improve the planning, management, financing, and control of freight transport in Ciudad Juarez. This window will also aim at improving the policy and legal framework for regulating freight transport in Ciudad Juarez in order to reduce GHG emissions. Funding in the amount of US$120,000 is proposed in order to implement a regulatory plan, including a route system and a traffic control and supervision system for Ciudad Juarez. 31. Window 2: Land Use / Transport Coordination. This window includes: studies and technical assistance intended to address barriers that impede proper transport and land use integration and to suggest measures to mitigate these barriers while improving institutional capacity. In Puebla, GEF will promote the creation of a specialized entity responsible for urban transport planning within the municipality. In Ciudad Juarez the project will help develop a 2 Includes US$180,000 for project administration 3 Karekezi, S., L. Majoro, T. Johnson, 2003. Climate Change Mitigation in the Urban Transport Sector: Priorities for the World Bank. World Bank Departmental Working Paper. Report No. 26389. Page 8 · medium term plan for improving pedestrian mobility and a study on recovering historical public centers. The total funding assigned is the equivalent of US$205,000. 32. Window 3: Public Transport Enhancement . This window includes studies and technical assistance to improve the institutional and regulatory framework, and to define the state government and municipal roles related to the planning, management and implementation of integrated and sustainable systems for urban transport. This window will also develop strategies for the participation of the private sector in the urban transport management. GEF funds will not be used for infrastructure investments and an environmental and social management framework (MASTU) has been prepared that will be used to help mainstream safeguard considerations into the project cycle and city level. The four cities are at somewhat different levels of development and technical capacity and at different stages in the planning process for public transport systems. The studies carried out will recognize this reality as f ollows. In León, GEF funding will finance the studies required for the design and implementation of the second phase of OPTIBUS, under an integrated transport system. In Monterrey, GEF funds will develop studies for the implementation of two BRT corridors integrated to the current METROREY system. In Ciudad Juarez, the project will finance the studies required for the implementation of the BRT and to reorganize urban transport in the city. In Puebla, GEF funds will finance studies for the rationalization of routes and the design of a BRT corridor project, including origin – destination surveys. Funding of US$ $3, 757, 000 for this Window is proposed. 33. Window 4: Non-motorized transport . This window comprises studies and technical assistance to introduce and promote walking and bicycling as viable and safe alternatives to the use of private cars and other traditional motorized transport systems. The intended outcome of these activities is to demonstrate and prepare cities to make further investments in non-motorized facilities and to undertake further activities to promote bicycle usage. Funding is proposed at about US$1,116,000. 34. Included also is partial financing of the project coordinating unit (located in SEDESOL), which will be in charge of supervising and monitoring performance of the GEF subprojects in the four cities and coordinating with the other countries under the regional umbrella. The amount allocated is US$180 000. TABLE 2 GEF Co-financing Total Project Cost By Window and City in Mexico US$ US$ US$ Window 1: Freight Management Ciudad Juarez 120,000 110,000 230,000 Subtotal Window 1 120,000 110,000 230,000 Window 2: Land Use / Transport Coordination Ciudad Juarez 80,000 70,000 150,000 Page 9 · GEF Co-financing Total Project Cost By Window and City in Mexico US$ US$ US$ Puebla 125,000 50,000 175,000 Subtotal Window 2 205,000 120,000 325,000 Window 3: Public Transport Enhancement Ciudad Juarez 700,000 1,000,000 1,700,000 Leon 1,160,000 7,480,000 8,640,000 Monterrey 1,862,000 18,498,000 20,360,000 Puebla 35,000 300,000 335,000 Subtotal Window 3 3,757,000 27,278,000 31,035,000 Window 4: Non-motorized transport Ciudad Juarez 131,000 417,000 548,000 Leon 296,000 1,480,000 1,776,000 Monterrey 599,000 2,096,000 2,695,000 Puebla 90,000 50,000 140,000 Subtotal Window 4 1,116,000 4,043,000 5,159,000 Project Administration-SEDESOL 180,000 30,000 210,000 Total GEF Project in Mexico 5,378,000 31,581,000 36,959,000 5. Financing Source: ($m.) BORROWER/RECIPIENT 31.58 Global Environment Facility (GEF) 5.38 Total 36.96 6. Implementation 35. Mexico will form part of the learning community across the three countries that are participating in the Regional Component of the GEF project. This learning intervention will draw in state governments and municipal agencies, such as ministries and secretariats, the World Bank and the Clean Air Institute to identify and disseminate best practices and strengthen municipal and state governments’ capacities. More specifically, representatives of agencies involving environment, land use, and transport, along with a representative of the SEDESOL- PCU and from the cities involved, will constitute a Consulting Committee for the Regional Program. Also, a Technical Committee will be set up for the Pilot Investments in the four cities subprojects. This Committee will be constituted by representatives of BANOBRAS, SEDESOL, SEMARNAT, municipalities, the state governments, and the State Environmental Secretariats. 36. Institutional arrangements and responsibilities for the Regional Program have been defined in the Memoranda of Understanding to be signed between the Clean Air Institute (CAI), SEDESOL and the four cities selected. Also, for the pilot investments, technical assistance and Page 10 · capacity building, there will be Participating Inter-Institutional Agreements which will be signed between SEDESOL and each participating city. 37. The Grantee is the United Mexican States, through the Ministry of Finance and Public Credit (SHCP) which will be the recipient of the Grant. The SHCP has assigned BANOBRAS as the financial agency responsible for overall financial management and fiduciary aspects of the GEF project, while SEDESOL will be the executing agency responsible for all technical and monitoring and evaluation aspects of the project, overall technical management, and supervision of the grant. 38. Day-to-day subproject management will be the responsibility of a Project Coordinating Unit set up by SEDESOL within the Directorate of Infrastructure and Transport. This PCU will inter alia coordinate the specialist technical input needed from SEDESOL (transport, procurement, institutional, environmental, etc) for project implementation. The PCU will coordinate with BANOBRAS the requests for No Objection from the Bank and the payments to consultants. Also, this unit will coordinate with the CAI the activities required by the cities to assist in the coordination and implementation of the Regional Program and provide technical assistance to the cities for their procurement of goods and consultancies. 39. There will be a Technical Committee within SEDESOL and it will provide support and guidance on policy matters that relate to urban transport, environment, land use and urban development. The Committee will have a consultative role and will be a forum of debate and deliberation regarding cross-sectoral issues. Furthermore, it will be the recipient of experiences and information to be gleaned from the GEF Regional program in other participating countries and cities. Finally, it is hoped that this entity will be at the forefront of developing an approach to integrating transport, and land use and environmental planning at a national level as a result of the lessons learned in Mexico through the GEF program and also through the experiences communicated from other countries. Furthermore, the Technical Committee will support, advise and express technical opinion about the development and advances of the subprojects in the participating cities. 40. All the windows (components) will be carried out following procedures of the Operational Manual of the GEF project. The Operational Manual details the rules and regulations and organization for implementing each window/component and the responsibilities of project staff of SEDESOL and the city executing agencies (operational planning, procurement plan and prior and ex-post review, monitoring, evaluation, institutional arrangements, environmental reviews, participating inter-institutional agreements between SEDESOL and city agencies, procurement and financial management). A draft operational manual has already been prepared and reviewed by the Bank. 7. Sustainability 41. Grantee’s commitment to and ownership of the project. All the city-projects recommended for inclusion in the Mexico GEF Project have undergone a rigorous review in the context of the international and sub-project selection competition. While the guidelines of this competition established the broad windows to be funded, all specific activities in the competition were proposed by the cities. Proposals lacking clear political and institutional commitment were Page 11 · rejected by either the Blue Ribbon Panel or subsequently by the Bank. (See Annex 20 of Regional PAD for additional details). 42. Sustainability. The selected city proposals were assessed based on technical quality, local capacity, commitment and political support to assure that the four selected city projects are expected to have the highest direct GHG impact and indirect impact. There is a sound basis for successful implementation and there is a good chance for long-term investments in follow up projects in the country that could be financed by the UTTP. To ensure overall sustainability, the project will focus on strengthening institutional and regulatory frameworks and financial sustainability at the city and country level. 43. At city and metropolitan level, the Mexico GEF Project will assist in creating mechanisms and institutional frameworks to coordinate planning and decision making on transport, environment and urban development. The project will help strengthen the institutional capacity to prepare, plan, implement, monitor and evaluate the performance and environmental benefits of sustainable transport projects. The project will also help strengthen public private partnerships in financing and operation of urban transport systems. The project will foster the implementation of economic and regulatory incentives at municipal level to mainstream environmental considerations into the urban planning and transport planning process. 7. Lessons Learned from Past Operations in the Country/Sector 44. The Bank has had a long-standing involvement in climate change and air quality management in general in Mexico, and their interrelationship with urban transport in particular. The first loan in this regard, approved in 1992, had the objective of reducing traffic-generated air pollution in Mexico City. To disseminate lessons learned and involve other cities, the Bank, with support from other partners, created the Clean Air Initiative in Latin American Cities in 1998. Similar initiatives have now been launched in Asia and Africa. In addition, recent strategy papers on Pollution Management and Urban Transport discuss extensively the effects of urban traffic on air quality, and urban transpor t operations in Bogotá, Buenos Aires, Lima and Sao Paulo, which include air quality management components in their design. 45. Mexico, in the last ten years, has implemented many programs to address environmental issues related to the transport sector: · Air Quality Improvement Program in the Valley of Mexico (Phase I: 1995 – 2000 and Phase II: 2002 – 2010). · Air Quality Improvement Program in the Metropolitan Area of Guadalajara (1997 – 2001). · Air Quality Management Program in the Metropolitan Area of Monterrey (1997 – 2002). · Clean Air: Toluca Valley Program (1997 – 2002). · Air Quality Management Program in Ciudad Juarez (Phase I: 1998 – 2002, Phase II: 2006 – 2011). · Air Quality Improvement Program in Tijuana – Rosarito (2000 – 2005). · Air Quality Improvement Program in Mexicali (2002 – 2005). · Air Quality Improvement Program in Salamanca (2003 – 2006). · Air Quality Management Program in the Metropolitan Area of Puebla Valley (2006 – 2011). Page 12 · · Introduction of Environmentally Friendly Measures in the Transport Sector for the Metropolitan Area of Mexico City (2003 – 2007). 46. Due to these air quality projects, and other projects related to urban transport such as the Medium Sized Cities Urban Transport Project and HABITAT Project, several lessons can be drawn, including: · Air pollution is a long-standing issue, and long term strategies are required to address it. These strategies should be necessarily included in government plans at the federal, state and municipal levels. It also needs political support to enable its implementation in a sustainable and integrated manner. · To address the cities’ local air pollution problem as well as their contribution to global warming, also it is necessary not only to carry out long-term planning but also to implement institutional strengthening and immediate measures to reduce GHG emissions. These two planning levels must be articulated in a Master Plan or an Integral Plan for the Urban Transport Sector by participating cities. · Air quality management is a responsibility of the State Government and Municipalities, but the design and execution of policies involves the participation of many private and public agents, including transport operators and private and public transport users. In this sense, institutional spaces like the Planning Municipal Institutes (INPLAM) and Urban Observatories can become strategic platforms for the success of sustainable transport projects. · The sustainable transport projects require a shared planning approach and the improvement of the institutional and legal framework to define the roles and functions among the different agencies related to urban transport, urban development planning and environmental management. · Finally, the participation, support and financing of the World Bank is important for the involvement of entities, agencies, governments, non-government organizations, research and training centers, among others in sustainable transport projects. 8. Safeguard Policies (including public consultation) Safeguard Policies Triggered by the Project Yes No Environmental Assessment ( OP / BP / GP 4.01) [X] [ ] Natural Habitats ( OP / BP 4.04) [ ] [X] Pest Management ( OP 4.09 ) [ ] [X] Physical Cultural Resources ( OPN 11.03 ) [ ] [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 / GP 7.60) [ ] [X] Page 13 · Projects on International Waterways ( OP / BP / GP 7.50) [ ] [X] Based on the assessments carried out during project preparation, the Project has been qualified as “Category B”, following the Operational Bank Policy OP 4.01 and 4.12. The MASTU provides adequate prevention, mitigation and compensation measures to address the potential impacts identified during project preparation, and specifies procedures and responsibilities of contractors and the municipalities to minimize the negative environmental and social impacts during the project cycle. 9. List of Factual Technical Documents 10. Contact person Contact: Arturo Ardila Gomez Title: Urban Transport Specialist Tel: (202) 473-5861 Fax: (202) 676-9594 Email: aardilagomez@worldbank.org 11. For more information contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-4500 Fax: (202) 522-1500 Email: pic@worldbank.org Web: http://www.worldbank.org/infoshop