Document of The World Bank FOR OFFICIAL USE ONLY Report No: 28777-PE PROJECT APPRAISAL DOCUMENT ONA PROPOSED LOAN IN THE AMOUNT OF US$5.0 MIL,LION TO THE REPUBLIC OF PERU FOR A VILCANOTA VALLEY REHABILITATION AND MANAGEMENT PROJECT August 12,2004 FINANCE, PRIVATE SECTOR AND INFRASTEWCTURE COUNTRY MANAGEMENT UNIT- LCCGC LATIN AMERICA AND THE CARIBBEAN REGION This document has a restricted distribution and may be used by recipients only in the performance of theirb official duties. Its contents may not be otherwise disclosed without World Bank authorization. CURRENCY EQUIVALENTS (ExchangeRate Effective: 05/05/04) CurrencyUnit = Soles 3.60 Soles = US$l FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS AATC Tourism Agency Association of Cusco ARARIWA Association for the Andean Cultural and Technical Promotion CATCCO Andean Center of Traditional Technology and Culture of Ollantaytambo CBC Bartolome de las CasasCenter CCL Local Coordination Council CDD District Development Committee CENFOTUR Center of Training in Tourism CIES Consortium of Economic and Social Research COGESAC Committee of Environmental Management of the Vilcanota Basin CONAM Council of the Environment CONSETTUR Consortium of Tourist Transportation Companies Machu Picchu COPESCO Commission PeruUNESCO COSITUC Committee of Tourist IntegratedServices - Cusco DNDT National Directorate of Tourist Development DRIT Regional Directorate of Industry and Tourism DRTC Regional Office of Transportation and Communications EIN Eco-Industrial Networking FDTC Departmental Worker Federation of Cusco HSMP Historic Sanctuaryof Machu Picchu IFC International Finance Corporation IMA Institute of the Environment (Cusco) INC National Institute of Culture INRENA National Institute of Natural Resources ITDG Peru Intermediate Technology Development Group Peru MPP ! PMM Machu Picchu Program MCLCP Consensus-buildingTable for the Struggle Against the Poverty MEF Ministry of Economy and Finance MINCETUR Ministry of Foreign Trade and Tourism MTC Ministry of Transportation and Communications Vice President: David de Ferranti Country Manager/Director: Marcel0 Giug'ale SectorManager: John Henry Stein Task Team Leader: Roberto Chavez FOR OFYFTCULUSEOI'+&Y NGS National Geographic Society OGA General Administration Office MINCETUR PIT Project Implementation Team in MINCETUR PROFONAMPE National Program for Natural Areas Protectedby the State PRONASAR National Program of Rural Sanitation RETAMA Cusco Regional Sanitation Program SEA Strategic Environmental Assessment SNIP National System of Public Information UGM Management Unit Machu Picchu UNESCO United Nations Education, Science and Cultural Organization URISA Intl. Urban and Regional Information Systems Association, International VICEMINTUR Vice Ministry of Tourism' WHC World Heritage Center of UNESCO WMF World Monuments Fund 11 c This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. PERU: Vilcanota Valley Rehabilitation and Management Project CONTENTS A. STRATEGIC CONTEXT AND RATIONALE ......................................................................1 1 Country and sectorissues.................................................................................................... 1 2: Rationale for Bank involvement .......................................................................................... 2 3. Higher level objectives to which the project contributes..................................................... 4 B. PROJECT DESCRIPTION ..................................................................................................... 5 1 Lending instrument .............................................................................................................. 5 2: Project development objective and key indicators .............................................................. 5 3 Project components.............................................................................................................. 6 4: Lessonslearned and reflected in the project design ............................................................8 - 5. Alternatives consideredand reasonsfor rejection ...............................................................9 C. IMPLEMENTATION ............................................................................................................10 . 1 Partnership arrangements...................................................................................................10 2: Institutional and implementation arrangements.................................................................11 3. Monitoring andevaluation of outcomes/results................................................................12 4 Sustainability ..................................................................................................................... 12 5: Critical risks and possible controversial aspects...............................................................13 6. Loan conditions and covenants.......................................................................................... 14 D. APPRAISAL SUMMARY ....................................................................................................15 1 Economic and financial analyses.......................................................................................15 2: Technical............................................................................................................................ 15 3. Fiduciary ............................................................................................................................ . 16 . 4 Social ................................................................................................................................. 16 51 Environment ...................................................................................................................... 17 6. Safeguardpolicies ..............................................................................................................18 . 7. Policy Exceptions andReadiness...................................................................................... 19 Annex 1: Country and Sector or Program Background.................................................................20 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies 25 . . . . . . . . . . . . . . . . . . . . . . . . . . Annex 3: Results Framework andMonitoring ..............................................................................26 Annex 4: Detailed Project Description ..........................................................................................28 Annex 5: Project Costs .................................................................................................................. 33 Annex 6: Implementation Arrangements....................................................................................... 34 Annex 7: Financial Management and Disbursement Arrangements .............................................36 Annex 8: Procurement................................................................................................................... 40 Annex 9: Economic and Financial Analysis .................................................................................. 46 Annex 10: SafeguardPolicy Issues...............................................................................................49 Annex 11: Project Preparationand Supervision............................................................................ 53 Annex 12: Documents in the Project File ...................................................................................... 55 Annex 13: Statementof Loans and Credits ................................................................................... 57 Annex 4: Country at a Glance............................................................................. 59 Annex 5: Community Consultations ........................................................................................... 61 Annex 6: Business Partnerships................................................................................................... 69 Annex 7: ResettlementAction Plan, HSMP ProcessFramework and EIA Framework.. ............ 1 Annex 8: Maps........................................................................................................................... 106 . PERU Vilcanota Valley Rehabilitation and Management Project PROJECT APPRAISAL DOCUMENT Latin America and CaribbeanRegion LcsFu Date: August 12,2004 Team Leader: Roberto Chgvez Country Manager: Marcel0 Giugale Sector: Urban Sector Manager: John Henry Stein Themes(s): Environment; Urban Development; Local Economic Development; Cultural Heritage Project ID: PO82625 Lending Instrument: Sector Investment Loan (SIL) [X] Loan [ ] Credit [ ] Grant [ IGuarantee [ ] Other For Loans/Credits/Others: Loan Total Bank Financing: 5.0 US$m Proposed Terms: Fixed Spread Loan, 14 years, 8 years Grace Period. .i,,. : ,.:__,_.. I:: .'.:"",:_::,;__..,,,.,_i :i :',:...:,:`\;" ~~:~~~,-~~~~ ":`I.. " : * ,:...:. ._' ,.:: 1.1,:' .:.:. ,, , __',' _. `:~:-:TI-:::-:;;:li- -;,;L::.;";`;. ; .I;, Source I Local I Foreign I Total Borrower 32. 32. IBRD 38. 12. 50. Total 70. 12 82. l Borrower: GOVERNMENT OF PERU Responsible Agency: Direction National de Desarrollo Turistico, MINCETUR Address: MINCETUR, CBrpac, San Isidro, Lima Contact Person: Director National de Desarrollo Turistico, Ing. Jorge Chavez Tel: 5 1l-225 2890 Fax: Email: jchavez@mincetur.gob.pe Estimated Disbursement (Bank FY/US$m): ----- Cumulative 1 0.75 1 2.62 1 4.27 1 4.98 I 5.00 I Project Implementation Period: 4 Years (FY2005-2009) Expected Effectiveness Date: 10130104 Expected Closing Date: 09/30/08 Does the project depart from the CAS in content or other significant respects? 0 Yes *No Ref. PAD A.3 ---1 Does the project require any exceptions from Bank policies? Ref. PAD D.7 0Yes @No Have these been approved by management? , . 0 Yes *No Is approval for policy exception sought from Board? 0 Yes *No Does the project include any critical risks rated `substantial' or `high'? @Yes oNo r- 1Ref. PAD CS I I Does the project meet the Regional criteria for readiness for implementation? * Yes oNo Ref. PAD D.7 objective is to support the Government of Peru's efforts to enhance the environmental and socio-economic sustainability of historical, cultural and ecological assets in the Vilcanota Valley including the Historic Sanctuary of Machu Picchu (HSMP) and the Sacred Valley of the Project Description (Ref. PAD B.3.a, Technical Annex 4) The project will support the sustainable management of the historical, cultural and ecological assets in the Vilcanota Valley thi-ough investments in tourism management and services, urban environment infrastructure, the rehabilitation of historical and cultural sites and municipal capacity building. The project includes four inter-related components including: (i) tourism capacity building and infrastructure development; (ii) urban services and infrastructure rehabilitation; (iii) local economic development; and (iv) strategic planning and municipal capacity building. The project will incorporate the know-how of a broad group of international and local institutional partners with leading expertise in green technologies, historical and cultural education, management of historical monuments, application of GIS and community-based information technology. Which safeguard policies are triggered, if any? (Ref. PAD D.6, Technical Annex 10) Safeguard policies triggered include those for the environment, cultural property and involuntary resettlement. Significant non-standard conditions, if any, for: Loan effectiveness conditions: * The Project Account has been opened and the initial deposit has been made; * The Borrower has formed a Project Implementation Team (PIT) and recruited a Project Coordinator, Technical Coordinator, Financial Officer and Procurement Officers; * The Borrower has developed a general procurement plan, detailed procurement plan for the first year and has adopted an operational manual satisfactory to the Bank; l The borrower has signed Inter-Institutional Cooperation Agreements with at least three of the five municipalities and with INWNA, INC and UGM; and * The municipality of Machu Picchu Pueblo has issued a municipal decree establishing the urban boundary of the town. Dated covenants l Revise the Historic Sanctuary of Machu Picchu (HSMP) master plan to take into account for the period of 2004 to 2009, within 18 months of effectiveness; * Incorporate new HSMP management guidelines into the revised master plan within 18 months of effectiveness; and * Initiate Municipal Territorial Plans within 24 months of effectiveness. Other conditions l The road between Santa Teresa and the Hidroelectrica inside the HSMP will not be completed, in favor of the proposed alternative solution of extending the railway 4km outside of the HSMP, thus I preventing vehicular access to the Sanctuary. * Municipal decrees establishing the urban boundary for Machu Picchu Pueblo and the municipal building code shall not be abrogated or waived. A. STRATEGIC CONTEXT AND RATIONALE 1. Country and sector issues The Valley of Vilcanota is the Eociof great pre-Hispanic cultures, which flourished in a century preceding the Spanish conquest of Peru. The vast legacy of Inca civilization with its capital in Cusco and a string of fortified market towns, from Pisac to Ollantaytambo, includes the royal estates and the Historic Sanctuary of Machu Picchu (HSMP). Since 1983, the monumental heritage, containing trails and archeological sites with their surrounding natural environs, were designated by UNESCO as the World Heritage Sites. In recent years, however, this unique heritage became susceptible to an array of pressures,most notably to: (a) the effects of mass tourism, (b) unregulated growth of towns encroaching onto protected heritage and natural sites, (c) inadequate preservation management system of sites and conservation of monuments, (d) need to improve natural disaster preparednesscapacity, (e) inadequateprovision of water supply and drainage services, (f') inadequatesolid waste management system in the valley, and (g) lack of cultural awarenessand educational content in schools and for visitors, in general. To halt the decay and the risk of irreversible lossesof the heritage assetsat the Vilcanota Valley, the proposed project addressesthe following objectives: (a) support of activities and programs aimed at sustainablepreservation management of Peru's most valuable heritage sites and natural protected areas;(b) increasethe scopefor sustainable tourism in Peru, through targeted capacity building efforts, educational content aimed at students,local population and visitors, provision of training programs to enhanceexpertisein management and conservation of sites and monuments, skills training programs in high demand due to the growing cultural tourism of the Valley; (c) support in delivery of basic rural and urban water and sanitation services, namely: an effective solid waste management and drainage systems along the towns of the Vilcanota Valley, and (d) strengthen the capacity of each municipality to manage decentralized services. The project provides a viable framework for collaboration amongst the private sector, public institutions, community basedorganizations and financial institutions. The proposed project is in line with the Country Assistance Strategy for Peru, discussed by the Board on September 17, 2002 Among others, it effectively addressesthe following key strategic objectives: (i) increases competitiveness and expands employment generation; (ii) promote equity and social justice by improving access to health, cultural and educational programs and basic urban services; and (iii) improve the institutional framework and governance system by coordinating the national, provincial and local public institutions. Additionally, the project will provide the basis for investments in tourist services and transportation by private sector, public institutions, the IFC and local communities, thereby establishing a framework for follow-up operations. An extensive community consultation process in the Historic Sanctuary of Machu Picchu (HSMP) and the Sacred Valley was conducted by a local NC0 between May 2003 and March 2004 to develop a Participatory Vision for the Vilcanota Valley. Additionally, a Social and Institutional risk analysis was prepared by a prestigious local research institution. Finally, extensive Bank consultation with local mayors, council members, community organizations and regional representativeson key development priorities took place over five missions between March 2003 and March 2004. A central theme from the consultation process was the recommendation that the project should focus broadly on promoting integrated regional 1 development of which sustainabletourism development would be one component. In particular, participants agreed on critical development priorities including: (i) improved access to basic urban services; (ii) pollution control and enhanced environmental management; and (iii) the further integration of local residents into the tourism economy; and, support for rural communities through agricultural and infrastructure development. Development priorities articulated during the consultation processare reflected in the project design. The project also builds on years of experience by UNESCO, the Finnish Government, National Geographic Society, World Monuments Fund and others, and furthers the agenda to address environmental, urban and institutional problems that have arisen as a result of increasedtourism to the Vilcanota Valley. The cultural importance and environmental sensitivity of the Vilcanota Valley requires non-conventional solutions including the use of broad-based community consultation, green technologies for sustainable development, and a regional approachthat will be implemented under the project. In addition, the project will leverage key investments financed by PRONASAR (PO65256), an ongoing Bank-supported rural water and sanitation project in Peru, and projects in the pipeline such as the Sierra Rural Development Project among others,and support ongoing IFC investments in the area, 2, Rationale for Bank involvement - The Vilcanota River hydrological basin includes the Historic Sanctuary of Machu Picchu (HSMP), heavily used sections of the Inca Trail, and settlements from Santa Teresa at the downstream western tip of the basin to settlements in the Sacred Valley, including Ollantaytambo, Urubamba, Calca, Pisaq and smaller historical communities. This corridor is the most intensely used in the larger Cusco hydrological catchment area. While Machu Picchu Pueblo (also known as Aguas Calientes) is the flashpoint for the complex environmental and management problems that impact the HSMP, the environmental; and tourism management problems in the area are fundamentally regional in nature. For example, agricultural produce from Santa Teresa generateswaste that ends up in Machu Picchu Pueblo. Solid waste from Machu Picchu Pueblo is transportedby rail to the city of Cusco for disposal. In turn, solid waste and wastewater from Cusco pollutes the Vilcanota River that flows back through the Sacred Valley and the HSMP. Finally, a hydroelectric plant (EGEMSA) between Santa Teresa and Machu Picchu Pueblo harnessesthe river's power and sends it over high voltage lines through the Sanctuaryto CUSCO. A Strategic Environmental Assessment planned under the project will take an integrated and regional look at resource use patterns,-sourcesof ecological degradation and environmental managementpractices. . In the past decade,there has been a significant increase in tourism to the Sanctuary as well as in the number of local migrants seeking to benefit from tourism related economic opportunities. Due to the lack of preparednessin tourist management and urban services, Machu Picchu Pueblo and the five towns in the SacredValley have not been able to fulfill their full economic potential and present a growing environmental and economic risk to the whole Valley. Machu Picchu Pueblo, the transferpoint for the train from Cusco or Ollantaytambo to the micro-buses that wind up the eight kilometers of dirt road to the Citadel, has experienced particularly rapid, unplanned growth that has resulted in loss of property and lives due to mudslides as recently as of April 2004. UNESCO has cautioned the Government of Peru that mismanagement of tourism in the HSMP could lead to the Sanctuary's being removed from the list of World Heritage Sites. At the 2 recent Annual meeting of UNESCO in China, Machu Picchu narrowly escaped from being placed on the list of endangeredworld heritage sites. The project intends to help keep it off that list by responding to UNESCO's key concerns. In 2002 the Government of Finland closed the Machu Picchu Program (MPP) that aimed to support environmental protection and sustainable tourism in the HSMP after four years of collaboration with the Government of Peru. The MPP successfully supported an environmental protection program, regional and urban master planning exercises, and technical assistancein conservation planning for INRENA. However, the program was unable to successfully complete key infrastructure investments due to a lack of community consultation in project design, limited partnership with the relevant authorities, a narrow focus on the tourism sector and the absenceof a regional approachto addressingproblems in the Valley. Past experience indicates that a sustainable solution for the Valley will require: (a) a shared vision by the municipalities of the Vilcanota Valley on how to preserve cultural heritage, facilitate sustainabletourism, improve living conditions and rehabilitate the region's ecology; (b) delivery and expansion of water, sewerage,solid waste and drainage services in the region; (c) collaboration among local authorities, central agenciesand international donors driven by local demand; and (d) commitment from the highest level of the Government of Peru. A4ain issues: Approximately 60,000 of the almost 400,000 tourists who visit the HSMP annually de-train at Piscaycuccho for a four-day hike to the Citadel, camping along the Inca Trail, supported by tourist agencies that provide local guides and porters. The large number of trekkers, inadequate sanitary and solid waste facilities and the lack of training for guides and porters have led to acceleratedenvironmental degradation along the trail. The most immediate risks are concentratedin Machu Picchu Pueblo where 60 dwellings are vulnerable to landslides. As recently demonstrated, landslides frequently close down the rail line, the only access to Machu Picchu Pueblo and the Citadel.. Poor management of water, sewerageand solid waste collection in the Valley exacerbatepollution of the Vilcanota River. Lastly, a number of recent settlers have squatted on the easternfringes of the Sanctuary and are using cattle and farming methods that may damagethe sensitive ecological systemsof the HSMP. A recent archeological discovery has further increased the region's attraction as a tourist destination. In November 2003 a Royal Geographical Society (RGS) sponsored expedition published a survey of the ruins of Llactapata, first reported by Bingham, Reinhard and others. Llactapata is a largely unexplored historical site on the ridge to the west of Machu Picchu. The significance of the recent expedition is the astronomical/geodetic relationship established between the two sites. The Llactapata archeological area is roughly twice as large as Machu Picchu and will contribute to significant increasesin the volume of tourist activity in the Valley. The RGS team reports that there are already visits organized by tour opertitors to the area. The emergence of Llactapata as a potential tourist destination increases the importance of rapidly implementing measuresto manage increased tourism flow and mitigate further environmental degradationto the region. Conflicts and Risks: A participatory risk assessmentand consultation process conducted with Bank support during project preparation confirmed the existence of complex social, economic 3 and political conflicts in the region. Over 50% of residents in the Vilcanota Valley have only tenuous links to the tourism sector and are dependenton agricultural and livestock production. These rural constituencies, often in conflict with tourism development interests, demand greater support for agricultural promotion, highlands-rainforest road network connectivity and improved basic rural infrastructure and services. Urban constituencies suffer similar infrastructure and basic service gaps as municipalities are unable to meet rapidly growing demands. Conflicts also emerge as local residents are not integrated into a tourism economy that is driven mostly by external firms and professionals. The consultation process and risk assessmentnoted a seriesof conflicts associated with the inability to manage solid waste services, rapid pollution in the Vilcanota River and natural hazardsincluding landslides, floods and soil erosion. PoliticaL framework: President Toledo has prioritized tourism development for the remaining three years of his term. The new Minister of Foreign Trade and Tourism (MINCETUR) has retained his position amidst recent cabinet changes. January 2003 local elections provide a window of opportunity as the new local and regional governments in Cusco are mostly from political parties allied to President Toledo. The INRENA Master Plan for the HSMP was adoptedin December 2002, with the support of the Government of Finland. In 2003 the DNDT (Direcci6n National de Desarrollo Turistico) invested about USs1.8 million in Machu Picchu Pueblo for physical improvements, successfully rehabilitating public infrastructure and the image of the village. Urgent measures: A number of urgent tasks are required to reverseenvironmental degradation in the Valley, assist the government to comply with UNESCO recommendations and complete initiatives originally planned under the Machu Picchu Program (MPP). These include: (i) installation of water meters and the completion and operation of a seweragetreatment plant in Machu Picchu Pueblo; (ii) resettlement of 60 highly vulnerable Machu Picchu Pueblo families in-situ or to the nearestappropriate areaadjacent to the Sanctuary; (iii) upgrading the sanitation of seven main towns in the Sacred Valley that currently dump raw sewage into the Vilcanota River; and, (iv) establishment of a regional solid waste management system. Role for the Bank: The Bank can contribute and leverage leading know-how to address the complex multi-sectoral problems in the Vilcanota Valley. The Bank is well placed to facilitate and coordinate the interventions of severalkey project partnersincluding UNESCO, the National Geographic Society, the World Monument Fund, NGOs and bilateral donors. In addition, the proposedoperation will complement an ongoing Bank-supported PRONASAR project to expand water and sanitation services to seven towns using innovative green technologies. Finally, the proposed project will enhance ongoing IFC investments in the railroad and hotels in Machu Picchu Pueblo and at the Citadel, as well as provide new business opportunities. Significant synergies in the development impact of ongoing and planned Bank group investments are possible. 3. Higher level objectives to which the project contributes The proposedproject contributes to poverty alleviation through the sustainable preservation and development of the human, social, natural, cultural, and historical assetsof the Vilcanota River Basin as well asthrough local economic development. B. EiROJECT DESCRIPTION 1. Lending instrument The proposedproject is a Sector Investment Loan (SIL). The project was initially conceived as a Lending and Innovation Loan (LIL) to support innovative approachesto participatory strategic planning and sustainabletourism management. The lending instrument was changed to a SIL at the PCN review meeting to benefit from fuller preparationand board presentation. 2. Project development objective and key indicators The project development objective is to support the Government of Peru's efforts to enhancethe environmental and socio-economic sustainability of historical, cultural and ecological assetsin the Vilcanota Valley including the HSMP and the SacredValley of the Incas. The objectives will be attained through: 0i consultation among local stakeholders to establish a shared vision for the future of the Vilcanota Valley and to ensurethat project design and implementation reflect community priorities; (ii) capacity building of municipalities, communities and firms in tourism support services, municipal financial management, urban service provision, `disaster prevention and local economic development; (iii) targetedinfrastructure investments and provision of urban services; and (iv) capacity building in services and management, and providing tourism infrastructure in compliance with key UNESCO World Heritage Sites guidelines. Key indicators to be included in the project monitoring framework include: Tourism CalvacitvBuilding and Infrastructure Develooment % 0; loca; and foreign tourists expressingsatiifaction with tourism services in HSMP and Vilcanota Valley; and, % of annual increasein use of visitor centers. Servicesand Infrastructure Rehabilitation Solid Waste Management (kg solid waste collected and % treated using green technologies); Sanitation (% of serviced residences,quality of treated wastewater and % treated using greentechnologies); and, BasicWater (m3 water consumed per capita, quality of treated water, % of population servedand % treatedusing greentechnologies). Local Economic Development * employment in person years as a result of project implementation; * % of increasein new firm creation; and e % of firm satisfaction with enabling environment. Strategic Planning & Municipal Capacity Building l % of increasein internally generatedmunicipal government revenues; * % of coverageof streetaddressingsystem; and 5 0 satisfaction of communities with municipal performance as expressed through participatory local dialogues (mesasde concertacion). 3. Project components The project has four main components(seeAnnex 4 for a detailed description andAnnex 5 for a detailed cost breakdown). Components Indicative % of Bank- % Bank- costs Total financing financing (US$M) (USM) 1. Tourism Capacity Building and 2.63 32 1.83 70 Infrastructure Development 2. Urban Services and Infrastructure 3.04 37 1.90 63 Rehabilitation 3. Local Economic Development 0.95 12 0.39 42 4. Strategic Planning and Municipal 1.01 13 0.57 57 Capacity Building ' 5. Project Management 0.53 6 0.26 51 Total project costs 8.15 100.0 45. 61.0 Total financing required 8.15 100.0 45. 61.0 Component I: Tourism Capacity Building and Infrastructure Development . The component will support sustainable tourism sector development in the Vilcanota Valley through investments in visitor services, historic preservation and cultural education for local residentsand tourists. Specific activities include: Visitor Services: The project will develop a network of visitor/ interpretation centers equipped with state-of-the-artfacilities in Machu Picchu Pueblo, Pisaq, Ollantaytambo and Wiiiaywayfia. The project will also support improvement of basic sanitation and solid waste collection services at specific campsites along the Inca Trail using green technologies. Investments will include the construction of public toilets, solid waste collection facilities and off-grid `green' technology systems for sanitation and waste water treatment. The project will also include investments to improve, .expand and standardize the signage system at historical and cultural monuments throughout the Valley and on the Inca Trail. Historic Preservation: The project will undertake studies for the rehabilitation of pre-Hispanic architectural sites and hydrological and agricultural infrastructure and trails throughout the Historic Sanctuary of Machu Picchu (HSMP) identified by the National Institute of Culture (INC) and global experts. These targetedinvestments will eventually preserveimportant cultural assetsand diversify the tourist experiencein the area. CuLtural Education: The project will develop educational content on the history and culture of the Andean people. Visitor I interpretation centers will provide world-class content produced in cooperation with the National Geographic Society (NGS). An information and educational 6 campaign on the cultural heritage and tourism will target local children and other stakeholders. A broader campaign promoting the preservation of Andean cultural identity will also be supportedunder the project. Component II: Urban Services and Infrastructure Rehabilitation The component will facilitate accessto improved urban services and infrastructure throughout the Valley. Specific investments include support for: Regional Solid WasteManagement System: The project will support development of a regional solid waste management system using eco-industrial technologies that minimize adverse environmental impact. A regional solid waste assessmentwill be conducted under the project to identify an appropriate strategy and hesign for a regional solid waste management system. The project will support specific investments basedon the technical design to be developed under the project. Investments under the project may include organic cornposting, a regional sanitary landfill, management capacity building and public education. Support for the solid waste management system will complement and integrate existing efforts under the Municipality of Cusco's RETAMA project and other initiatives being implemented by local governments in the HSMP and the municipalities of the SacredValley. Resettlement of Vulnerable Households in Machu Picchu Pueblo: The project will resettle 60 families that have been given the option of receiving cash compensation, relocation within the city limits or resettlement to a new community about 12 kilometers from the pueblo towards SantaTeresa. The project will support land, housing and basic service provision for the families that accept resettlement within the pueblo or at the alternate site. Details of resettlement activities planned under the project and the publicly disclosed Resettlement Action Plan are provided in Annex 10. Detailed Engineering, Environmental Impact Assessments and Investments in . Urban Infrastructure: The project will support detailed engineering studies, EIAs and physical investments in environmentally sustainable storm water drainage systems for urban areasin the Valley. The project hasidentified urban water and sanitation investments in the project areathat will be financed through the Bank-supported national rural sanitation program (PRONASAR). PRONASAR has also agreed to support a program to construct rural latrines in the Valley. Additionally, the project will identify infrastructure investments that may be supported under parallel Bank-supported Rural Electrification (FY06), Sierra Rural Development (FY06) and Decentralized Rural Infrastructure (beyond current CAS period) projects. Component III: Local Economic Development This component will support community-driven local economic development by enhancing the capacity of local tourism service providers, constructing community telecenters and incubating local economic initiatives through a demand-driven development marketplace facility. Key investments will include: Capacitj Building for Tourism Service Providers: The project will provide training in different aspects of tourism management to porters, tour guides, agency employees, hosts, park rangers and other key stakeholders in the tourism sector. Training services will increase the competitiveness through training in historical and cultural knowledge and environmental awarenessfor local service providers. Community Telecenters: The project will develop a network of community telecentersin Pisaq, Calca, Urubamba, Ollantaytambo, Machu Picchu Pueblo and Aobamba. Based on Intermediate Technology Development Group Peru's (ITDG) Cajamarca experience,the telecenterswill serve as community business incubators by providing accessto computers, high-speedinternet access, audio-visual equipment, electronic libraries and other small businessfacilities. Small grunts for Local Communities: The project will provide a development marketplace-type fund for each municipality that will provide small grants to community associations and small firms to support community-driven economic development. Eligible activities will be defined by municipalities and may include initiatives that promote market accessfor agricultural products, increasedagricultural productivity, and local tourism promotion. Component IV: Strategic Planning and Municipal Capacity Building This component will enhancethe strategic planning and management capacity of municipalities in the Valley. Investments will include: (i) a regional strategic environmental assessment(SEA) and development of a cultural assetsplan for the Vilcanota Valley; (ii) urban and rural land use plans for the two provincial and four district municipalities; (iii) municipal capacity building programs in participatory planning, tourism management, municipal finance, management of urban services and disaster prevention; and (iv) a municipal and regional GIS-based addressing system to supportland management,project planning and monitoring, andrevenue mobilization. Component V: Project Management The project will support supervision, monitoring and project auditing activities to be coordinated by a project implementation team (PIT) based in the Direction National de Desarrollo Tur6stico (DNDT). 4. Lessons learned and reflected in the project design Lessons from sector work in Peru and tourism, cultural heritage preservation, eco-industrial development and urban infrastructure projects are reflected in project design (see Annex 2 for related projects). These include: (i) Principle of subsidiarity is key to ownership and project success: Devolving authority, responsibility and accountability for decision-making and management to the lowest appropriate level enhances community ownership, builds capacity and increases effectiveness. The centralized and top-down approachthat characterized the Machu Picchu Program (MPP) resulted in the failure of the sewage treatment and water improvement investments in Machu Picchu Pueblo. The project will coordinate closely with municipalities and will support the continuous civic engagement through existing `mesas de concertacion and participatory budgeting initiatives to ensurethat conflicting interests as identified during preparation are subject to active and public negotiation. Municipal responsibilities will be detailed in inter-institutional cooperation agreementsto be signed between MINCETUR and the municipal governments. (ii) Eco-industrial networking reinforces sustainable development. The project will also build upon lessons of the successful implementation of eco-industrial networking solutions in developed and developing countries. The eco-industrial networking approach involves developing new local and regional partnerships among the private, public and civic actors to promote the efficient, productive and environmentally sustainable use of natural resources. The approach involves the use of green technologies to enhance cost-savings for firms and municipalities, mitigate pollution in waterways from wastewater and sanitation and reduce greenhouse gas emissions. Integrated eco-industrial approaches have been used in Bank- supportedIntegrated Rural Development programs (PIDER) in Mexico and the Lobito-Benguela Urban Environmental Rehabilitation project in Angola. The project also incorporates recent Bank experience with the Copan Valley ,,Regional Development project and the Medina rehabilitation projects in Tunisia and Morocco. (iii) Sustainable tourism projects can catalyze local economic development. Recent sustainable tourism promotion operations have successfully supported local economic development. Technical assistanceand capacity building targetedto small and medium firms in business development and tourism support services can support firm growth and generate employment. Community telecentersin Ecuador, Cajamarca, Peru, Bolivia and elsewhere serve as business incubators by providing small business facilities and support services. The project will include small business capacity building, community telecenters and linkages to IFC and Bank SME promotion programs in Peru. (iv) High-quality content and best practices are accessedthrough knowledge sharing and business partnering. Sustainable tourism projects can benefit from international and local business partnering to leverage leading know-how in historical preservation, cultural heritage education, tourism management, eco-industrial networking, ICT services and GIS-based technologies. Strategic partnerships facilitate capacity building of national and local institutions through exposure to world-class experts and knowledge. The project will facilitate partnerships between the Government of Peru and UNESCO, the National Geographic Society, World Monuments Fund, URISA, Intl. and ITDG Peru described in detail in section C.1 and Annex 16; and,` (v) Quality management promotes client-focused project and continuous improvements. Continuous, gradual improvement through successiveapproximations, reliable measurement and progressreporting will take place throughout project implementation. The project will utilize an address-basedGIS system for data collection and information management and as feedback for monitoring and evaluation. I 5. Alternatives considered and reasons for rejection Two alternative project approacheswere considered during preparation: (i) Project focused only on Machu Picchu Pueblo. MINCETUR initially invited .the Bank to examine the feasibility of supporting the government's efforts to rehabilitate Machu Picchu Pueblo. The pueblo had become a flashpoint for the complex social, economic and environmental problems affecting the Sanctuary. However, the first mission fielded by the Bank identified the regional nature of ecological, tourism management and historic preservation 9 problems facing the HSMP and Vilcanota Valley. Lessons from the Government of Finland supported MPP suggest that the absenceof a regional approach to tourism and environmental managementled to sub-optimal infrastructure investments. The Bank, country counterparts,and international partners agreedthat the problems in Machu Picchu Pueblo and the Sanctuary could only be addressedin a sustainable manner by intervening in a comprehensive fashion in the Sacred Valley between Santa Teresa and Pisaq, rather than focusing solely on Machu Picchu Pueblo. (ii) Large unified infrastructure project. Project partnersconsidered designing a large, turn- key, conventional infrastructure project that would addressall infrastructure rehabilitation and development requirements in the Valley including construction of an electrical tourist transportation system from Machu Picchu Pueblo to the Citadel. Local and national government partners, however, noted that a combination of overlapping jurisdictions, ongoing decentralization, complex land regulations, sensitive ecological factors and the lack of a clear regional development strategy could imperil large infrastructure investments. A large infrastructure project would also require considerable institutional reform and lengthy project preparation periods in a context where immediate interventions are required to respond to rapid tourism sector growth and unmitigated environmental degradation. The project will also leverage infrastructure investments from ongoing and pipeline Bank-supported projects including the PRONASAR, Sierra Rural Development, Rural Electrification and Decentralized Rural Infrastructure projects. The smaller and quick implementing project approachwill support a participatory regional development strategy, pilot environmentally sustainabletechnologies and facilitate institutional reforms in preparation for a potentially larger follow-up operation. C. IMPLEMENTATION 1. Partnership arrangements Project implementation will benefit from partnerships with six international institutions with world-class technical expertise (see Annex 46 for detailed description of institutional partnerships). The Bank has coordinated project preparation activities with UNESCO's World Heritage Center (WHC). The project incorporates into the draft legal document as covenants or key conditions WHC recommendations to the Government of Peru to ensure that the HSMP retains World Heritage Site status. The WHC will support efforts under the project to update the Master Plan for the HSMP and prepareoperational manuals for the maintenance of heritage sites. Recent consultations with the WHC Director and the UNESCO confirmed the parameters for collaboration. Institutional partnerships with the National Geographic Society (NGS) and the World Monuments Fund (WMF) will produce world-class educational content and capacity building for the improved management of historic monuments, respectively. NGS will support the development of educational content on Andean culture and history and presentational facilities for the network of visitor/ interpretation centersto be established under the project. This content will also be used in information campaigns on cultural heritage that target tourists as well as local schoolchildren. The WMF will provide advisory support and a matching grant for a capacity building program. The program will train private tour operators, hosts, guides, park rangersand staff from INC and INRENA in the management and preservation of historical sites. 10 The project will include collaboration with the Eco-Industrial Group (EIG), a consortium of Canadian environmental management firms with leading expertise in the application of eco- industrial networking solutions. The EIG will contribute to a strategic environmental assessment for the Vilcanota Valley, assist in the development of a regional solid waste management system and advise on detailed engineering studies and EIAs for eco-industrial sanitation, wastewater managementand water supply systems to be financed under PRONASAR or other pipeline Bank infrastructure projects. Finally, the project also includes partnerships with URISA, Intl. and ITDG Peru. URISA, Intl. will contribute leading expertise in GIS-basedtechnologies for urban and regional information management as well as the development of a GIS-based addressing system for the Valley, formulation of regional and urban territorial plans, and municipal capacity building. ITDG Peru will contribute local know-how developed in Cajamarca in the establishment and operation of community-based telecenters. ITDG Peru will provide ongoing advisory and supervision support for the community telecenters to be developed under the project. 2, Institutional and implementation arrangements. Annex 6 details institutional and implementation arrangements. The project will be executed by MINCETUR. A project implementation team, PIT, responsible for overall project coordination and supervision will be createdin the DNDT within the Vice Ministry of Tourism. The PIT will consist of an Executive Coordinator and three technical, financial management and procurement officials. The Executive Coordinator will be secondedfrom MINCETUR while other officials will either be secondedor recruited basedon the availability of qualified candidates. DNDT has demonstratedthe capacity to implement projects within the HSMP, having successfully invested US$ 1.8 million towards the rehabilitation of Machu Picchu Pueblo over a nine month period in 2003. The OGA (Oficina General de Administration) within MINCETUR will provide support to the PIT in implementing the project. The financial management and project procurement officers will be located within the OGA but report directly to the Executive Coordinator. An assessmentof the financial management and procurement capacity of the DNDT has been conducted and the results are summarized in Annexes 6 and 7. Specific implementation arrangementsare:. (i) DNDT will be responsible for overall project implementation and the execution of all studies, capacity building and technical assistanceactivities under the project. However, the integrated project design and complex institutional environment in the Vilcanota Valley require the DNDT to enter into project agreements or inter-institutional cooperation agreements with agencies responsible for the execution of specific project sub-components. Responsible executing agencies include COPESCO (Comision Peru UNESCO), the executing arm of DNDT, and ARARIWA, a local NGO. DNDT will also enter into cooperation agreements with INC, INRENA, CATCCO, UGM and IMA. These agencieshave agreedto coordinate work programs and contribute resources towards the implementation of specific project subcomponents. Details of eachagreementareprovided in Annex 6. (ii) Local Firms will execute and supervise physical works components under the project, including investments for telecenters, visitor /interpretation centers, visitor services on the Inca Trail, a signage system for historical monuments, the rehabilitation of Andean architecture and infrastructure and the resettlement program. In order to ensure effective implementation of the 11 resettlement component a team of resettlementexperts from the MTC (Ministerio de Transporte y Comunicaciones) with extensive experience in the area will be seconded to provide MINCETUR with technical assistance. (iii) Local NGOs with extensive experience in participatory planning and community development and will execute the ProcessFramework for the Q'ente and Wayllabamba families that live on the fringes of the HSMP, with non-native agriculture and cattle farming methods along the Inca Trail. The framework outlines a participatory process by which the communities will receive economic alternatives addressedat providing tourist services and training in order to limit adverseeffects on the environment. (iv) A Committee of Notables will be formed to provide advisory support during implementation. Prominent local leadersand cultural figures will be joined by international and Peruvian experts in Andean cultural heritage, historic preservation, sustainable tourism and environmental conservation to form the committee. The committee will meet every six months to review project progress and issue an advisory note with recommendations and comments to the PIT. The advisory note will become part of public record through print and electronic media. 3. Monitoring and evaluation of outcomes/results Data for project outcome and results indicators will come from six sources: (i) Quarterly and annual project reports that integrate financial management data with project activities involving works, technical assistanceand capacity building will be generatedby the project management information system; (ii) Local NGOs will conduct community surveys and consultations on a continuous basis to provide regular feedback on project effectiveness; (iii) DNDT will commission periodic business environment assessments, customer satisfaction surveys and monitor SME start-ups to assessthe quality of the telecenters and visitor centers: (iv) INC and INRENA will provide information on the number, origin and destination of visitors to the HSMP and the Inca Trail; (v) DNDT, in cooperation with INRENA and the municipalities, will monitor key environmental indicators including measures for assessingwater quality in the Vilcanota River; and, (vi) Results from regular project monitoring and records of process and decisions associatedwith all community consultations will be disclosed publicly as part of the projects public information campaign. 4. Sustainability Borrower commitment to the project is very high. DNDT has developed strong partnershipswith municipalities in the Valley and key agencies including INC, INRENA, COPESCO and CONAM during project preparation to build consensuson critical interventions in the Valley. All municipal and agency stakeholders will sign agreements to formalize specific roles and responsibilities during implementation. Commitment will include: (i) designation and enforcement of a fixed urban boundary to limit urban growth in Machu Picchu Pueblo; (ii) participation in municipal capacity building and participatory strategic planning exercises; and (iii) responsibility for the operations and maintenance of project investments in solid waste, drainage,streetaddressing,visitor centersand telecenters. Community Participation. A broad community consultation process facilitated by ARARIWA and a socio-economic risk assessmentfor the project conducted by CBC (Centro Bartolome de 12 las Casas) identified as keys to sustainability the strengthening of forums for public dialogue, integration of rural development objectives into project design and investments in a regional solid waste management system. These priorities have been subsequentlyintegrated into project design. Additionally, the project will support an ongoing community consultation process to provide regular feedback on project effectiveness. The consultation campaign will be led by ARARIWA and linked to ongoing `mesasde concertacion' in each municipality. municipal Management and Capacity Building. Successful rehabilitation of the Valley will require municipalities to improve environmental management, control urban expansion and provide improved basic services to local residents and tourists. Th.cf project will support municipal capacity in financial management, urban service provision, physical planning and tourism management to enhance the sustainability of investments in so1id waste management, telecenters, visitor/ interpretation centers and additional infrastructure investments leveraged through other Bank-supported projects in the pipeline. ' Visitor/ Interpretation Centers and Telecenters. The network of visitor/ interpretation centers and telecenters will become self-financing before project completion. Visitor/ interpretation centerswill charge entrance fees from tourists.and the telecenters will charge fees for the use of computers, internet, facilities and other support services. Operations and maintenance for each visitor/ interpretation center and telecenter will be financed under project for one year to ensure satisfactory phasing into a self-financing model. The network of visitor/ interpretation centers andtelecenterswill be managedby INC andthe municipalities respectively. Municipal elections. Municipal elections will take place in 2008 allowing for over three years of continued administration. Over two-thirds of planned project activities, including key infrastructure investments, are scheduled for completion during the tenure of the existing administration. 5. Critical risks and possible controversial aspects As demonstratedby the recent loss of life and property in Machu Picchu Pueblo, the greatestrisk lies in not responding to the Government of Peru's request for assistanceto stem the process of unmanaged urbanization and continued environmental degradation in the Vilcanota Valley. Inaction will contribute to irreversible ecological damage in the HSMP, the removal of Machu Picchu and the SacredValley from the list of World Heritage Sites and continued environmental degredation in the region. Specific project risks are summarized in the risks matrix below. The project, though small, is highly visible and may pose corporate risks. A comprehensive public information campaign under the project will enable the rapid and wide disclosure of project information and proactive engagementwith local, national and international media. Risks and relevant mitigation measuresaredetailed as follows: 13 j `. . . Risk Rat&g : _.., .Rjsh. ' Risk IkllitigtitionMeatsur~s. ._ with I I.Mit&p&m To project development objective Political instability in Peru will remain a The project has been developed through a H concern as the project has key federal comprehensive participatory process that will counterparts. The environment in Cusco continue through implementation. Municipal and mirrors national political instability. A national partnerships will ensure continued severe deepening of political unrest in the ownership and support in the event of potential country and region could threaten overall political instability or delays in the project project success. implementation. New administrations are expected to support improvements to municipal assets. . To component results The project is currently scheduled for A strong project implementation team staffed with M two-thirds completion within the tenure experienced professionals will be established within of existing municipal and provincial the DNDT. Inter-Institutional Agreements with political administrations. Significant partner agencies and municipalities will clarify project delays could cause responsibilities. Quality international partnerships implementation of key activities to with UNESCO, NGS, WMF, ITDG, URISA and overlap with subsequent administrations EIG will leverage proven implementation with limited ownership. experience. Public information and community consultation campaigns will reinforce ownership and awareness amongst beneficiaries. Complex regulatory, land-use, The project team has already established strong jurisdictional and institutional factors partnerships with key national, regional and local affecting the HSMP and the Vilcanota agencies including MINCETUR, COPESCO, Valley could create obstacles to the INRENA, INC and UGM with which regulatory and implementation of project investments. institutional obstacles can be resolved. The limited successof the Government of The project builds on lessonsfrom the MPP Finland MPP initiative combined with initiative. A communication campaign under the project's high visibility poses a project will provide accurate and timely project reputational risk for the Bank information to indirect stakeholders and media outlets. The project design also incorporates community participation, partnerships with local governments and aregional approach to addressing sustainable tourism and environmental objectives. Overall risk rating H 6. Loan conditions and covenants The project includes loan effectiveness conditions, dated covenants and other conditions. Loan effectivenessconditions: e The Borrower hasadoptedan acceptablefinancial managementsystem; * The Borrower has formed a PIT and recruited team members including a Project Coordinator, Technical Coordinator, Financial and Procurement Officers; l The Borrower has adopted an operational manual satisfactory to the Bank, including the small grant operational manual, the resettlement plan and the processframework; l The Borrower has signed the final Institutional Cooperation Agreements with the five municipalities, INRENA, CENFOTUR, the Vice Ministry of Sanitation and INC. 14 Dated covenants * Appoint independentauditors within three months of effectiveness; * Adopt SEA and present evidence of necessary land acquisition within 24 months of effectiveness; l Revise the Historic Sanctuary of Machu Picchu (HSMP) master plan to take into account for the period of 2004 to 2009, within 18 months of effectiveness; * Finalize Municipal Territorial Plans within 24 months of effectiveness. * Finalize Vilcanota Valley territorial Plan within 30 months. Other conditions - The road from the Hidroelectrica to Piscaycuccho will not be built, in favor of other solutions preventing vehicular accessto the HSMP. D, APPRAISAL SUMMARY 1, Economic and financial analyses A cost-benefit analysis was conducted to determine the economic feasibility for the investment components of the project. A detailed summary of the analysis is included in Annex 9. The project includes a series of investments in tourism infrastructure, sustainable tourism management,historic preservation of cultural sites and the rehabilitation of urban services in the Vilcanota Valley. These investments have the net effect of increasing the value and quality of the tourist experienceto the Vilcanota Valley. The economic analysis conducted for the project will measure the net economic benefit received to the Valley resulting from improvements in tourism services. Project costs were calculated basedon the total project investments during the project period and estimated operations and maintenance costs resulting from physical investments, projected for eight years after project implementation. Project benefits were calculated basedon projected increasesin the volume of tourist visits based on historical trends, the averageduration of stay and the averageexpenditure per tourist in Peru from official MEF, BCR (Banco Central Reserva de1 Peru), INC and other agencies. The results of the analysis confnm the economic and financial feasibility of the project. The net present value (NPV) for the project is estimated at US$12.71m with an internal rate of return (IRR) of 44.90%. 2. Technical The project is technically sound. Physical investments in sanitation on the Inca Trail, urban drainage and support for the regional solid waste system will be implemented under the project while additional investments in urban water and sanitation will be financed through the Bank- supportedPRONASAR project. The project will apply an innovative yet proven eco-industrial networking approach to infrastructure development in the Valley in order to mitigate ongoing environmental degradation caused by unmanaged tourism and rapid urbanization. The eco- industrial networking approach builds local and regional partnerships among the private, public and civic actors to promote the use of green technologies that increase cost efficiencies, eliminate harmful waste and emissions, and recycle natural resources. Green technologies integrate the physical and biotic processesin nature with conventional technologies. Specific green interventions may include solar aquatic systems or wastewater gardens for wastewater treatment; integrated solid waste management systems involving organic cornposting, recycling and environmentally sustainable landfill development; and bio-sand filters for water treatment systems. The detailed design of investments will take place during implementation following the SEA and the regional solid waste plan through detailed engineering for urban services. 15 3. Fiduciary Financial management and procurement assessmentsconducted for the project have found that the implementing agencyfor the project: (i) lacks prior experiencein Bank-financed projects and hence insufficient knowledge of Bank procurement guidelines and procedures; (ii) requires experiencedand skilled staff to implement Bank-financed project procurement; and (iii) needsan integrated project information system to carry out monitoring, control and reporting tasks for efficient project coordination and decision-making. The assessmentconcluded that the Public Procurement and Contracting Law governing state agencies lacks sufficient provisions for consistency with Bank procurementrequirements. The public procurement framework also lacks adequateprovisions for fraud and corruption prevention in contracting. The assessmenthas noted that DNDT has demonstrated considerable connnitment to strengthening financial management and procurement proceduresto harmonize with Bank procedures. It has also been concluded that the agency has adequate equipment and infrastructure to achieve necessary financial management and procurement standards. The overall risk level for the assessmentis consideredsignificant. A series of measures has been proposed and built into the project design including the: (i) recruitment of key professional financial management staff for the PIT; (ii) expansion of existing manuals of the OGA to include necessarythe administrative and financial arrangementsfor the project; (iii) training of project unit and OGA staff in Bank financial management and disbursement procedures; (iv) implementation of a loan management module of the national integrated system; (v) development and implementation of a global implementation plan extending through the first year of implementation to build financial management and procurement capacity in the unit; and (vi) introduction of special provisions on procurement to loan agreementsto supplement public procurement laws. It is also recommended that the Bank carry out frequent procurement supervision in order to ensure that the pace of both the project implementation and the procurement improvement action plan reflect satisfactory performance. 4. Social The project design has been based on an extensive community consultation process and a participatory analysis of socio-economic and institutional risks supported during project preparation. SeeAnnex 15 for details of the consultation process,risk assessmentand proposed project approachfor continuous community engagement. The community consultation process aimed to' initiate a process of public dialogue on regional development priorities that will continue under the project. The processwas facilitated by ARARIWA and involved consultation with civil society organizations, local authorities, private sector representatives and other important stakeholdersin the Vilcanota Valley though a series of workshops. These took place in Pisaq, Calca, Urubamba, Ollantaytambo, Piscaycuccho, Qorihuyrachina, Machu Picchu Pueblo and Aobamba. Consultations identified a seriesof key development priorities including support for cultural heritage preservation, rural agro-based development, improved municipal governance and strengthened environmental management. The project will facilitate a continuous processof dialogue that will build upon two existing local mechanisms: (i) thematic and geographic public dialogues called `mesas de concertacion' ; and (ii) municipal participatory budgeting mandatedunder Peruvian law. 16 The participatory `Social and Institutional Assessment and Risks Analysis in the Vilcanota Valley', conducted by the Cusco-based research institution CBC, identified three types of conflicts: (i) institutional; (ii) socio-`environmental; and (iii) socio-economic. These conflicts manifest themselves in violence due to the extreme poverty and social exclusion in the region. The assessmentalso identified three types of threats: (i) environmental (frost and drought, landslides, erosion, floods, extinction of wild species and water pollution); (ii) economic (inadequate road system linking rural communities to economic centers, unplanned industrial development and low profitability for agricultural and livestock); and (iii) socio-political (rapid urban growth, limited access to basic services from the poor, corruption, clientelism and the reappearanceof terrorism). The assessmentmakes a seriesof recommendations for and beyond the project: 0i include on rural development in addition to tourism sectordevelopment; (ii) study an adequate road system to integrate the area with the regional and national economy, as the Vilcanota Valle r is the main highlands-rainforest interconnection area; (iii) undertake a detailed feasibility study for the rehabilitation of the Cusco-Quillabamba railway and the Santa Teresa - Mollepata road and/or other alternative communication routesfor Santa Teresaand Quil abambal La Conception. (iv) facilitate the involvement of local governments and mayors in the `mesas de concertacion' process; (V ) support the Government to undertake the reforrnulation of the HSMP Master Plan 2004- 2008; and (vi> supportefforts by CONAM (Consejo National de1Medio Ambiente) to facilitate regional solutions to environmental conflicts. The project has identified 60 families in Machu Picchu Pueblo that reside outside town boundaries on land extremely vulnerable to landslides. These families will be resettled within the pueblo or at an acceptablelocation identified outside the town. A Resettlement Action Plan (RAP) has beendevelopedby the borrower in consultation with the affected families (seeAnnex 17 for complete RAP). The RAP includes a detailed baseline socio-economic study of the affected families. Additionally, the project has identified 47 farmer families living along Inca Trail within the Historic Sanctuary of Machu Picchu. The farmers are dependent on agriculture and cattle raising practices that adversely effect the local environment. In order to addressthese impacts the borrower has prepareda ProcessFramework (seeAnnex 17) in compliance with OP 4.12 that will provide these families with access to alternative income generation activities. Implementation of the RAP and ProcessFramework will be financed under the project. 5. Environment No major environmental impacts are envisioned as a result of this Category B project. Due to the nature of the small works and the still uncertain inclusion of the landfill component in the project, no EIA was required in advance for project approval. However, in order to ensure that all infrastructure works will comply with Bank safeguardpolicies during project implementation, the project hasdeveloped and Environmental Framework Guidelines (included in the project file and available at the InfoShop), that consists of two chapters: one for small infrastructure works and one for landfill location and construction of sanitary landfills. These Frameworks include the following methodological tools: (i) a guide for project categorization basedon type of project 17 and level of sensitivity, taking into consideration the Safeguard Policies of the Bank; (ii) a Fieldwork Checklist to determine potential social and environmental impacts of infrastructure subprojects; and (iii) an environmental manual for all infrastructure components which addresses among other items: site selection, specific norms during construction activities for contractors, communications with community, chance-finding procedures and environmental supervision during the construction. All infrastructure work will follow the same procedures for environmental evaluation, i.e.: evaluation under the Environmental Framework by local consultants, andreviewed and approvedby the environmental specialist of the team. In addition, the project will seekto further reducethe impacts causedby tourism development by undertaking a regional SEA. The SEA will involve a comprehensive regional analysis of the likely medium- to long-term environmental impacts in the Vilcanota Valley and HSMP from tourism, industrial activity, agriculture and related demographic and resource use patterns. The assessmentwill serve as a strategic environmental planning tool for regional and municipal governments aimed at monitoring and mitigating potential problems. Key policy reforms and investment priorities will also be identified through the assessment. 6. Safeguard policies The project triggers the Environmental, Involuntary Resettlement and Cultural Property safeguards. Safeguard Policies Triggered by the Project Yes - - No Environmental Assessment (OP/BP/GP 4.01) --- [Xl El Natural Habitats (OP/BP 4.04) -- ' Cl [Xl Pest Management (OP 4.09) [3 [xl Cultural Property (OPN 11.03,being revised as OP 4.11) [TX1 11 Involuntary Resettlement (OP/BP 4.12) [Ix1 [I Indigenous Peoples(OD 4.20,being revised as OP 4.10) [I I31 Forests (OPKBP4.36) II1 [Xl Safety of DaE (OP/BP 4.37) -- c3 IlXl Projects in Disputed Areas (OP/BP/GP 7.60) -- III cxl Projects on International Waterways (OP/BP/GP 7.50) -- III [xl The Cultural Property Policy is triggered since project activities may impact physical cultural resources. Project works may encounter physical cultural resources during the construction of small works near archeological sites. The EIA manual for small works includes a chapter on chance findings procedures and outlines appropriate preservation and protection measures. Additionally, the SEA to be conducted under the project will include a sub-component for the preparation of an inventory of tangible and intangible cultural assets in the Valley in collaboration with INC. The inventory will assist regional agencies and municipalities to protect andrehabilitate valuable cultural resources. The Involuntary Resettlement Policy is triggered since the project will resettle 60 families from Machu Picchu Pueblo. The families have constructed homes outside the city limits on land * By supportingthe proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas 18 vulnerable to natural disasters. The identification of the 60 families is based on preliminary disaster mitigation studies conducted under the MPP and subsequently confirmed during preparation of the RAP. The borrower has prepareda resettlement plan in accordancewith OP 4.12. The plan is basedon the detailed identification of three viable resettlement alternatives and summarizes the resettlement priorities expressedby the displaced farnilies. The plan also details the socio-economic characteristics for affected families, specifies eligibility criteria and outlines institutional arrangementsfor implementation and grievances(Annex 17). Additionally, the borrower has prepareda ProcessFramework for the Q'ente and Wayllabamba families that reside and participate in subsistenceagriculture and cattle farming along the Inca Trail (see Annex 17). The ProcessFramework outlines a participatory process by which these families will adopt alternative income generation activities and will receive training in order to limit adverseimpacts of agricultural and cattle farming in the HSMP. The framework will be implemented under the project and aims to replace or mitigate the impacts of environmentally damaging productive activities. It has been determined that the Indigenous Peoples Policy is not triggered by the project. Local residents to be impacted by the project do not qualify as indigenous peoples as defined in the Indigenous Peoples OD 4.20. Primarily, residentsof the Vilcanota Valley cannot be described to constitute `social groups with a social and cultural identity distinct from the dominant society that makes them vulnerable to being disadvantaged in the development process' as outlined in paragraph 3 of the policy. Additionally, communities in the Vilcanota Valley to be directly impacted by the project do not exhibit characteristics as outlined by the five eligibility criteria in paragraph5 of OD 4.20 (seeAnnex 10 for further clarification on OD 4.20). 7, Policy Exceptions and Readiness The project does not require exceptions from Bank policies. The number of safeguardstriggered will require closer than average supervision by the Bank. Frequent missions with experts and CMU staff will be fielded for the duration of the project. The procurement and financial managementassessmentshave outlined a seriesof capacity building measuresfor the DNDT and OGA to ensurefor readinessby project effectiveness (seedetails in section D.7 and Annex 6 and 7). These include the recruitment of key staff, development of manuals, training, preparation of a global implementation plan and enhancedprocurement guidelines. The DNDT and OGA have committed to implementing these measures before effectiveness. A feasibility study for the project following the SNIP (National Public Information System) format required by the MEF (Ministerio de Economia y Finanzas) has been submitted to the MEF by MINCETUR in April, 2004. 19 Annex 1: Country and Sector or Program Background PERU: Vilcanota Valley Rehabilitation and Management Project "THEREARETWOTYPESOFPROBLEMSINPERU: THOSETHATHAVENOSOLUTION,AND THOSE THAT RESOLVE THEMSELVES"MANUEL PRADO,TWICEPRESIDENTOFPERU The historic Citadel of Machu Picchu is "the window of Peru to the world" as one official put it. The town of Machu Picchu Pueblo and its environs are not only failing-to fulfill their potential, but present a growing risk to the county's chief biological, historical and economic asset, the ecological and historic Sanctuaryof Machu Picchu. The complexity and interdependencyof the social, economic, environmental, cultural, heritage and social problems present a real challenge. The recent political re-alignment provides the opportunity for a relatively small, fast, knowledge intensive operation that may be sufficient to trigger a virtuous cycle involving community, government, private sector and donors in the rehabilitation and sustainable management of the Machu Picchu Sanctuary andthe towns of the SacredValley of the Incas. Background Machu Picchu, `"discovered" by Bingham in 1911, was declared a natural and historic world heritage site by UNESCO in 1981. The Sanctuary covers 32,000 hectares,and comprehendsthe Machu Picchu Citadel, one of the world's prime tourist destinations, part of the Inca Trail, the town of Machu Picchu Pueblo, and a number of small, isolated rural communities. On its western boundary of the Sanctuaryis a hydroelectric plant which supplies Cusco and its region. In the past few decades,the Sanctuary has seena surge of immigrants, following the growth in tourism and tourist investments, including the privatized rail concession as well as the hotels in the pueblo and at the Citadel, all of which are supported by IFC. Just a few months ago, an important archeological site next to Machu Picchu was surveyed, promising even greatertourist potential. Machu Picchu Pueblo, which is the transfer point from the train from Ollantaytambo or Cusco to the microbuses winding 8 kilometers of dirt road to the Citadel, has experienced particularly chaotic growth. The influx of tourism and the local population serving them has brought serious environmental and social pressureson town as well as on the Sanctuary overall. While the town of Machu Picchu, formerly know as Aguas Calientes, is the flashpoint of the complex problems affecting the Sanctuary, the problem is growing all along the rail line once it enters the Sanctuary, where it is the only mode of transportation. The Vilcanota river hydrological basin encompassesmost of the Sanctuary and a whole string of settlements from Santa Teresa at the downstream western tip of the basin outside the Sanctuary, to the string of Inca settlements in the SacredValley passing though the larger historical settlements of Ollantaytambo, Urubamba and Calca and Pisaq, and smaller nearby communities such Chincheros and Yuncay. The fruit from Santa Teresa,which is converted to garbagein Machu Picchu Pueblo, is transported by rail to a transfer station in Ollantaytambo and then by truck to a projected landfill nearby that servesthe entire SacredValley as well as Cusco. The hydroelectric plant harnessesthe Vilcanota's power and sends it over high tension lines through the Sanctuary to Cusco, The system of human settlements neatly conforms with the Vilcanota river catchment basin, the basic element for territorial planning. The rail and road system as well as the he hydroelectric plant integrate the Vilcanota Valley to the Cusco region. 20 About 100,000 of the 400,000 tourists who visit Machu Picchu annually de-train at the entrance to the Sanctuary (km. 82 from Cusco) for a four day hike to the Citadel, camping along Inca Trail with local guides and porters. The sheernumber of trekkers, with insufficient facilities, no solid waste recycling and lack of training of the guides has led to accelerating environmental degradation along the trail. The most dangerousconditions to humans, however, are found in Machu Picchu Pueblo. The population of perhaps 2,800, reaches4,000 during the day when people from surrounding settlements converge upon the tourists to sell, beg or hustle. The town is on a 32 hectare small alluvial plain located at the convergenceof the Aguas Calientes and the Vilcanota Rivers, which crossesthe Sanctuary. About sixty dwellings are in imminent danger due to potential landslides or flooding. The town of about 2,500 inhabitants, through which some 300,000 plus tourists passeach year, attracts vendors and craftsmen (about 280 registered by municipality), child laborers and beggars, as well as high and low-end restaurants,pensions, hotels and other services. It has grown chaotically, encroaching on the steephillsides and river banks, damaging the environment and posing a serious risk due to landslides and flooding to both residents and visitors. Indeed, landslides are common in the area and frequently close down the rail line or accessto the rural communities in the Sanctuary. Large stonesperiodically descendon the rail line and have hit the train on various occasions, most recently damaging a passengercar were three tourists were hurt, including one fatality from a heart attack. In addition, partially operating urban services add to the environmental degradation. The buses that travel 30 minutes each way up and down the dangerousnon-surfacedroad contribute to the pollution aslines of them idle their motors waiting for the trainload of tourists, and then cover the vegetation along the road with a fine coat of dust which stunts its growth. The road itself is not properly built and subject to settlement and landslides. Most recently a mudslide on 04110104in Machu Picchu Pueblo killed l 1 and washed away sevenhouses,leaving 70 people homeless. . A number of farmers have encroachedon the fringes of the Sanctuary for years, and introduced farming methods and cattle which are destroying the sensitive ecological systems that make the Sanctuaryunique. Legal and institutional aspects The Historic Sanctuaryof Machu Picchu, HSMP in its Spanish acronym, comprises a territory of 32,592 hectaresdeclared a natural and historical protected areafor the preservation of its unique natural and cultural values. There are several government agenciesoperating in the HSMP with dispersed,overlapping and uncoordinated functions. As a result the HSMP is not managed as an integral body with specific preservation needs. The main agencieswith competences related to the HSMP are: l The National Institute of Natural Resources,INRENA, of the Ministry of Agriculture, which is concernedwith the conservation of the biological diversity of the Sanctuary; l The National Institute of Culture, INC, of the Ministry of Education who is in charge of the management of the archeological sites within the HSMP, i.e. the Ciudadela of Machu Picchu and the Inca Trail. It is relevant to mention that INC's national budget is largely dependant on the revenues collected by INC in Cusco, and consequently the level of influence of INC of Cusco is very high; 21 * The Vice-Ministry of Tourism of the Ministry of Foreign Trade and Tourism, MINCETUR, is the national authority that promotes tourism and regulate the tourism- related services. Their National Directorate of Tourism Development is implementing the first phaseof the rehabilitation of Machu Picchu Pueblo; l The District Municipality of Machu Picchu which is the local government of the town and most of the area of the Sanctuary. Its functions include urban planning and regulating and managing the local public services. The town was created in 1941 comprising 314.6 hectares,but in 1989its areawas expanded to include the new urban zone of Las Orquideas; * The Provincial Municipality of Urubamba regulates Machu Picchu and all other municipal districts included within its jurisdiction. Issuesrelated to urban development and zoning, land titling, tourism and conservation of archeological sites in coordination with INC, among others,fall under their responsibility too; * Finally, the decentralization process underway has created a presidency of the department of Cusco, which oversees all communities and local governments in the department, all the way to the smallest villages, including Machu Picchu. The presidency's budget and role has yet to be defined, but they are interested and willing partners. There are other agencies whose functions involve marginal activities in their national competences, but that are critical for the HSMP due to its fragile ecosystem and the complex problems they face. These include: * The Ministry of Energy and Mining is an important agency for the Sanctuary because of the hydroelectric power plant just inside the HSMP. Day to day operations of the plant involve transporting personnel and machinery through the Sanctuary. There exist projects for the expansionof the power plant that might affect the protected area; l The Ministry of Transportation regulates the sector and plans national infrastructure. OSITRAN is its agency in charge of managing the concession for the operation of the rail company and of supervising the train service, and collecting fees for the use of the railway network; a PROFONAMPE, the GEF-supported Peruvian foundation for the preservation of protected areas,which produced the excellent Machu Picchu Master Plan on behalf of the Finnish Government; and, l The UNESCO Peru Commission, COPESCO, is a high-quality operation charged with implementing works currently underway under the initiative by DNDT of MINCETUR Finally, other stakeholdersinterestedin the areaare: l the private sector, such as the hotel Incaterra in the pueblo, PeruRail, the train operating concession, and Orient Express the concessionaire of hotel at the Citadel, and the numerous tour operators, bus service companies and the organized artisans/merchants; a the utilities and urban services agencies such as the Cusco sanitation department, the electrical and water authorities; 22 0 a number of NGOs based in the Vilcanota Valley and Cusco, among which the Instituto Machupicchu has done some outstanding work over the years. Others have specific expertise, such as ITDG, in community telecenters, and the CCT of the Catholic University for transfer of technology; and, last but not least, * the local communities of the SHMCP and their traditional leaders, the paces or shamans. In an effort to bring some order to this constellation of institutions and organizations, the central government recently established the UGM, or unit for management of Machu Picchu on whose board INRENA, INC and the new president of the Cusco department sit. The authority of these various agencies and elected governments frequently overlaps or is not clearly defined, which leads to inefficiencies, clientelism and corruption. In parallel to the institutional framework is the equally complicated and conflicting legal system and land tenure rights. Having no budget and little authority, to date the UGM has beenlargely ineffectual. Although the HSMP is a protected areathat constitutes a national patrimony, the law recognizes the private rights acquired prior to the declaration of the protected area,and establishesthat those rights are subject to restrictions over their use and.to control of transfer rights. However no expropriation processeshave ever been carried out. The original `fundos' were affected by the agrarian reform in the `70's, but the reform processdid not end in clear titles. Now the original owners of the `fundos' are claiming their rights. On the other hand, the land of the local peasant communities existing in the areais protected by a specific law, but its boundaries have not been delineated. In the specific caseof the Machu Picchu town, most of the lots are not properly titled and registered. The District Municipality extended land titles without having the legal competencewhich correspondsto the Urubamba provincial level. Responseto date Concernedwith the deteriorating situation, UNESCO fielded a number of missions since the mid `90's, recommending numerous measures to safeguard the world heritage site. In 1996, the Finnish government arrangeda debt for nature swap with the Peruvian government. About US$ 6 million were mobilized to prepare and carry out the Machu Picchu master plan. The excellent plan was prepared by the Peruvian Foundation for the Preservation of Protected Areas, PROFONAMPE. The plan included measures to protect the natural environment such as reforestation with local species, forest-fire control procedures, a geographic information system, and institutional reform and strengthening, as well as a plan for the urban upgrading/organization of the town of Machu Picchu Pueblo. In retrospect, the Machu Picchu plan was under-funded and trying to succeed in the chaotic institutional and social environment. Some gains were made in the environmental protection measuresand studies,such as for the town, as well as in the state of the art GIS and in capacity building. However, the Finnish government was frustrated with the lack of progress over four years due largely to the conflicting interests of government agencies and other stakeholders, and possibly to lack of clarity in accounting, and apparent disconnect with the population who felt left out from the Finnish exercise and did not accept the plans drawn by the Finns. The balance of about $US 2 million has beendeposited in a trust fund until their utilization is determined, and Finland formerly pulled out the project on December 31,2002. 23 Some of the accomplishments derived from the Machu Picchu master plan included the construction of a water system and sewagetreatment plant (although not yet operational) in the town of Machu Picchu, as well as some disaster prevention measures. Other recent improvements include an agreement between SEDEL, the Cusco solid waste management service, the municipality of Machu Picchu and Peru Rail, by which some three tons of solid waste a day are removed by train to a transfer station up the river Vilcanota to Urubamba and from thereto a sanitary landfill operatedby SEDEL. Despite the dramatic improvements of the town undertaken by MINCETUR in the past year, the town remains overcrowded with inadequateurban services and a `wild west' feel to it. Much of the population only stays for a couple of years to make some money and then gets out, as demonstratedby turnover and attendanceat the two small schools. Despite the two clinics in the town, medical facilities are inadequate. Emergencies at best can be evacuatedby helicopter to Cusco, presenting a risk for foreign and national tourists, as well as residents. The mayor complained that environmental concerns prevented their access to electricity, while the hydroelectric plant sent its high tension energy through the Sanctuary to Cusco. The mayor wants supportfor the municipality's rural aswell as the urban population. Present situation Taking advantageof a favorable political alignment following local elections in Januaryof 2003, the vice-Ministry of Tourism's DNDT invested about US$ 1.8 million in 2003. Their proposal for the integral recovery of the Machu Picchu Sanctuary begins with the short term investments that follow the urbanization plan proposedunder the Machu Picchu master plan contractedout to local consultants AOZ. The investments included the construction of a board walk along the river, an artisan plaza, a new turn around for busses on left margin of river, accessedby a footbridge. The face-lift of facades on the main square and thoroughfares, as well as the new artisans' market on the plaza have made a dramatic difference. In addition, the community was mobilized by the mayor to collect 27 tons on weekends and then to dismantle the chaos of temporary shops that had been set up over the years and relocate to the new artisans market, as well asto paint facadesof homes and businesses. The vice-Ministry of Tourism's investments based on the urban development plan prepared under the Machu Picchu Master Plan, make sense. The weakness in the Vice-Ministry of Tourism's approach is the lack of community consultation, much less participation in the planning. The weaknessin the Machu Picchu Master Plan is the lack of clear priorities and, as far asour project is concerned,that it is limited to the areaof Sanctuary. The problems afflicting the Sanctuary and the town are linked to the economics of the Vilcanota Valley system, ranging from the rural communities and hydroelectric plant downstream from Machu Picchu to the sanitary landfill. As if to underscorethe urgency of the proposed project, and in particular of the resettlement action plan, in the early hours of Saturday, April 10, a mudslide in Machu Picchu Pueblo (also known as Aguascalientes) washed away seven homes and killed .atleast six people. Five more were reported missing. A second mudslide closed the railroad leaving some 400 tourists stranded. 24 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies PERU: Vilcanota Valley Rehabilitation and Management Project * :_ .. Latest sUperVi@3H. .' &oje& " :I:. : . $pf$R) Rg&ij@- ' `. : $ixtor Pssue ..(Banlr4iii&ced j$uj&cts @iIF):. Bank-financed Implementation Development Progress (IP) Objective Water and sanitation supply Peru - National Rural S S Water Supply Health and Sanitation Municipal capacity Peru - Urban Property S S building; and urban land Rights Project management Tourism management Honduras - Regional S S capacity building; eco- Development in the Copan industrial sustainable Valley Project development; cultural heritage preservation; and local economic development Low-income, eco-industrial Angola - Lobito I Benguela S S urban water and sanitation Urban Environment supply Rehabilitation Project Tourism management Tunisia - Cultural Heritage S S capacity building: cultural Project heritage preservation; and tourism infrastructure rehabilitation Local economic Russian Federation - St. U S development; municipal Petersburg Economic capacity building; cultural Development Project heritage preservation; and tourism infrastructure rehabilitation Other development agencies Government of Finland Peru - Machu Picchu partnership with UNESCO Programme IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory) HU (Highly Unsatisfactory) 25 Annex 3: Results Framework and Monitoring PERU: Vilcanota Valley Rehabilitation and Management Project Results Framework . PDO Outcome Indicators Use of O&come . Information Support the Government of % of local residentsexpressing YRl -YR2: determine baseline; Peru's efforts to enhancethe satisfaction with rehabilitation and collect feedback on key environmental and socio- overall management of historical, weaknessesand areasfor economic sustainability of cultural and ecological assetsin improvements; andestablish historical, cultural and ecological the Vilcanota Valley specific program targets assetsin the Vilcanota Valley YR3-YR4: feed into regional and including the Historic Sanctuary municipal strategiesand plans; of Machu Picchu (HSMP) and and continued adaptation of the SacredValley of the Incas. project components Improvement in basic environmental indicators for solid YRl-4: useresultsto inform waste managements,water overarching program strategy and nollution and sanitation design A Intermediate Resulti ,' Results Indicators fur `1 Usi of Results Monitoring One per Component: _" Each.Component :. Component One: Component One: Component One: Enhancedtourism management % of local andforeign tourists YRl -YR2: determine baseline; capacity andthe improved quality expressingsatisfaction with solicit qualitative feedback; and and sustainability of tourism tourism servicesin HSMP and incorporate into sub-component servicesand infrastructure in the Vilcanota Valley activities Vilcanota Valley. YR3-YR4: adapt capacity building modules; target specific tourism infrastructure improvements basedon feedback % increasein use of YR2: determine baseline; visitor/interpretation centers YR3-4: develop, adapt and target content based on visitor statistic in each center; Component Two: Component Two : Component Two: Improved accessto basicwater, ratio of solid waste recycled to YRl-4: inform regional solid sanitation and solid waste total solid waste waste study and design of solid servicesin primary settlements. waste management investment; incorporate into municipal capacity building programs ratio of treated to untreated YRl-4: incorporate into seweragein project area municipal plans and capacity building programs Component Three: Compotient Three: Component Three: Increasedeconomic activity and % increasein new firm creation YRl : determine baseline; job creation in tourism and YR2-4: target LED training and related sectors. investments to sectors,firms and locations of greatest need; and inform participatory LED strategiesin five towns % increasein employment in YRl : determine baseline; Vilcanota Valley YR2-4: target skillstraining to vulnerable groups; target investments to key employment generating activities; and inform participatory LED strategiesin five towns 26 Arrangements for results monitoring I Target Values Data Collection and Reporting Outcome Indicators Baseline YRl YR2 YR3 YR4 YRS Frequency and Reports Data Collection Responsibility for Instruments Data Collection % of local residents expressing to be satisfaction with rehabilitation and determined m---s 40% 50% 60% 70% Yearly report with qualitative Community DNDT overall management of historical, in YRl feedback consultations cultural and ecological assetsin the Vilcanota Valley Improvement in basic To by Once every year; Technical studies DNDT environmental indicators for solid determined waste managements, water in YRl* pollution and sanitation Results Indicators for Each Component I Component One : to be ----- 30% 40% 50% 60% Yearly report with qualitative Customer satisfaction DNDT % of local and foreign tourists determined feedback surveys expressing satisfaction with tourism in YRl services in HSMP &Vilcanota Valley % increase in use of To be Six-monthly with qualitative Visitor centers records DNDT visitor/interpretation centers determined -B-s- ----s 5% 10% 10% feedback from sample visitors and sample surveys of after built visitors Component Two : to be Once every year Technical study Municipalities; DNDT Ratio of solid waste recycled to total determined solid waste in YRl* Ratio of treated to untreated sewerage to be Once every year Technical study Municipalities; DNDT in project area determined in YRl*' Component Three: to be 5% 5% 10% 10% 15% Once every year based on Economic assessment DNDT % increase in new firm creation determined sampling or estimation in YRI methodology % increase in employment in to be Once every year based on Economic assessment DNDT Vilcanota Valley determined 5% 10% 10% 10% 15% sampling or estimation in YRl methodology Component Four: To be % increase in municipal revenues from determined 5% 5% 10% 10% 15% Six-monthly with annual Municipal records Municipali ties property taxes, fees and other sources during projects appraisal % of households in five towns with to be Annual reporting Analysis of municipal Municipali ties; access to basic water and sanitation determined records services in YRla a*Annual targets for these indicators will be set based on baseline values to be determined in YR1 27 Annex 4: Detailed Project Description PERU: Vilcanota Valley Rehabilitation and Management Project Component I: Tourism Capacity Building and Infrastructure Development The component will support sustainabletourism development in the Vilcanota Valley through investments in visitor services, historic preservation and cultural education for local residents and tourists. Project costs are shown in Annex 5. Specific activities include: Visitor Services: * A network of visitor/ interpretation centersequipped with state-of-the-artfacilities will be constructed at Machu Picchu Pueblo (at the INC museum), Pisaq, Ollantaytambo and Wifiayway5a. The visitor/ interpretation centers provide visitors with the context and explanation of the site or sites they will visit, and these are one of the key UNESCO requirements. These will be complemented by an interpretation center being built by INETER in Piscaycuccho. Thus, content provided by National Geographic for the HSMP and the Sacred Valley will be available to visitors at key accesspoints. The centers will offer a short NGS video on the Inca Empire and sell high quality brochures, maps and guides in several languages.The interpretation centers will be operatedprivately by INC on a concessionbasis. Additionally, the project will support the improvement of basic sanitation and solid waste collection services at specific campsites and along the Inca Trail, using off-grid, green technologies in localized systems for sanitation and waste water treatment. Solid waste collection facilities and recycling services will be enhanced under this component, in connection with the ProcessFramework for the Q'ente and Wayllabamba communities along the Inca Trail. The facilities will be operatedby INRENA. The project will also include investments to establish a signage system for historical and cultural monuments throughout the Valley and on the Inca Trail. At present there is virtually no information at any monument. This will be a specific outcome of the inventory update of Cultural Property carried out in conjunction with INC. The signage system will be linked to the addressing/GIS system for incorporation to guides and maps. Finally, the project will also include upgrading pedestrian access to monuments in the SacredValley and the HSMP, which is intended to complement the signage system and enhancevisitor accessto a number of under-visited sites. This component also conducted in conjunction with INC. Historic Preservation: * The project will provide assistanceto identify and rehabilitate Inca architectural sites and hydrological and agricultural infrastructure, as well as portions of Inca Trails throughout the HSMP. Survey and rehabilitation of architecture and infrastructure' was initially intended primarily for the HSMP, but could also include preliminary works in the adjacentarcheological site of Llactapata. An initial focus would be on the rehabilitation of various sections of trail, such as that connecting Llactapata to Machu Picchu. Aside from the recovery of built heritage, the program is also intended to offer a diversification of the itineraries available to trekkers and hikers, This subcomponent falls under the responsibility of INC. 28 Cultural Education: The project will support two key activities: l Historical and Environmental Awareness program for foreign and local visitors, as well as for local population and for schoolchildren in particular, through the production and distribution of appropriate content. Brochures, maps and posters distributed in the respective languages will be distributed through the system of Visitor/ Interpretation Centers and through schools in the valley, as well as through public information campaigns directed at local communities, The subcomponentis implemented by DNDT; and, l Cultural Awareness Program seeks to identify, document and divulge local cultural practices of the various communities in the Sacred Valley. In connection with the capacity building programs in tourist services, local cuisine will be incorporated to restaurant and hotel training, as will other cultural manifestations to encourage their incorporation into arts and crafts. The program is spreadover the life of the project. The subcomponent is also implemented by DNDT. Component II: Urban Services and Infrastructure Rehabilitation The component will facilitate accessto improved urban services and infrastructure throughout the Valley. Specific investments include support for: (I) Regional SoZidWasteManagement System: The project will support the development of a regional solid waste management system using eco-industrial technologies that minimize adverse environmental impacts. A regional solid waste assessment will be conducted within one year of effectiveness to identify an appropriate strategy and design for a regional solid waste management system. Support for the solid waste management system will complement and integrate existing efforts under the Municipality of Cusco's RETAMA project and other initiatives being implemented by INRENA in the HSMP and the municipalities. Investments in landfill facilities, transfer stations, equipment, managementcapacity building and public education will follow the regional assessment. Resettlementof Vulnerable Households in Muchu Picchu Pueblo: Sixty families living in ' hazardousconditions on the outskirts of Machu Picchu Pueblo will be resettled under the project. The families will be given the option of receiving cash compensation, relocation within the city limits of the pueblo or resettlement to a new community beyond the pueblo towards Santa Teresa. The project will support land, housing and basic service provision for the families that accept resettlement within the pueblo or at the alternate site. The RAP will be conducted by COPESCO with advice from Ministry of Transportation experts in resettlement. Details of resettlement activities planned under the project are provided in Annex 10 and the publicly disclosed Resettlement Action Plan. l Detailed Engineering, EIA und Investments in Urban Infrastructure: The project will support detailed engineering studies, EIAs and physical investments in environmentally sustainable storm water drainage systems for the urban areas of five municipalities: Macbu Picchu Pueblo, Ollantaytambo, Urubamba, Calca and Pisaq. PRONASAR has agreedto undertakethe water and seweragerehabilitation and expansion in seven urban 29 areas: Machu Picchu Pueblo, Ollantaytambo, Urubamba, Yucay, Calca, Pisaq and Chincheros. To trigger these investments, the project would undertake EIA's basedon the manual for small works. PRONASAR has also agreed to support a program to construct rural latrines in the Valley. Additionally, the project will identify potential infrastructure investments that can be supported under parallel Bank-supported Rural Electrification (FY05), Sierra Development (FY06) and Decentralized Rural Infrastructure (beyond current CAS period) projects. Component III: Local Economic Development This component will support community-driven local economic development by enhancing the capacity of local tourism service providers, constructing community telecenters and incubating local economic initiatives through a demand-driven development marketplace facility. Key investments will include: Capacity Building for Tourism Service Providers: Includes training programs tailored to various groups of service providers, from the porters and service providers along the Inca Trail, to guides, restaurant and hotel operators. Different levels of courses will be provided, including in complying with IS0 standardsfor tourist service providers. The courses will be offered during the life of the project. Training services aim to increase the competitiveness, historical and cultural knowledge and environmental awarenessof local service providers. Training will likely to be provided by CENFOTUR, the Centro de Formaci6n en Turismo, a financially independent and high quality affiliate of MINCETUR. Community Telecenters: A network of community telecenterswill be developed in Pisaq, Calca, Urubamba, Ollantaytambo Machu Picchu Pueblo and Aobamba. Based on IT.DG Peru's Cajamarca experience, the telecenters will serve as community business incubators by providing access to computers, high-speed internet access, audio-visual equipment, electronic libraries and other small business facilities. Following the Cajamarca model, the facility is devolved to the local government, who establishes a steering committee and concessions the operation for private operation usually by local youth groups or NGOs. Facilities to accommodate the telecenters have been identified in all sites except Aobamba, where it would be built from scratch. In Ollantaytambo, the telecenterwould be located in the CATCO facility, an NGO with municipal participation. Costs are based on preliminary engineering for upgrading or adapting the municipal facilities. The community telecenterscomponent will also be executed by COPESCO. l Development Marketplace: Municipalities will have access to a development marketplace-type fund that will provide small grants to community associations and small firms to support community-driven economic development. Eligible activities will be defined by municipalities and may include initiatives that promote market accessfor agricultural products, increased agricultural productivity, and local tourism promotion. This program will be implemented by DNDT. 30 Component IV: Strategic Planning and Municipal Capacity Building This component will enhancethe strategic planning and management capacity of municipalities and other institutions active in the Valley. Investments under the components will include: Strategic Environmental Assessment.A strategic environmental assessment(SEA) will involve a comprehensive regional analysis of the likely medium- to long-term environmental impacts in the Vilcanota Valley and HSMP from tourism, industrial activity, agriculture and related demographic and resource use patterns. The assessment will serve as a strategic environmental planning tool for regional and municipal governments aimed at monitoring and mitigating potential problems. The SEA will incorporate the Cultural Property plan as discussed below. Key policy reforms and investment priorities will also be identified through the assessment. l Municipal Land Use Plans. Based on the SEA, urban and rural land use plans (planos territoriales municipales) will be developed for the municipalities of Machu Picchu, Ollantaytambo, Urubamba, Yucay, Calca and Pisac. The plans will guide settlement and investment in each municipality. This subcomponent will be supported by the municipal capacity building program discussed below, and is linked closely to the address-based GIS developed under the project. The subcomponentwill be undertaken by DNDT. * Capac@ybuilding. Training programs tailored for participating local government staff will be provided several topics, including: (i) municipal finance, (ii) management of urban services, (ii) disaster prevention; (iii) participatory planning; and, (iv) tourism management. Municipal finance will be provided by both SIAF as well as by the project, while other courses under the project will be conducted by experts hired by DNDT. The capacity building program is planned to be delivered the length of project implementation. * HMSP Norms and Regulations. Involves updating the HSMP master plan, whose first five year cycle comes to an end in CY 2004, as well as updating the rules for use of the HSMP Rules for the Use of the Sanctuary by tourists, service providers and concessionaires. In particular thesewill consider the special provisions for the use of the Citadel by the religious leaders (pacus or shamans) of different communities in the SacredValley. * Address-based GLS. A municipal and regional addressing system to support land management, project planning and revenue mobilization. This activity has been completed by INETER for the HSMP. The project would extend the addressingprogram to the rest of the Valley, building capacity in each municipality for operating and maintaining the system. The GIS-based addressing system will serve as a basic data collection and evaluation and monitoring tool as well. Component V: Project Management The project will support supervision, monitoring and project auditing activities to be coordinated by a project implementation team (PIT) basedin the DNDT. 31 PIT Management. Project management,supervision and monitoring will be coordinated by a project implementation team (PIT) based in the DNDT. While the Project Coordinator and Project Financial Officer will be secondedby MINCETUR, other PIT members needto be recruited. These costs, plus travel and per diems and office expenses are included in the subcomponent. Project Audits. Annual audits and opinions required no later than six months after closure of the fiscal yearby the loan agreement,will be financed by this subcomponent. 32 Annex 5: Project Costs PERU: Vilcanota Valley Rehabilitation and Management Project Project Cost by Component and Activity Local Foreign Total us$ US$ us million million million 1. Tourism Capacity Building and Infrastructure 2.20 0.43 2.63 2. Urban Services and Infrastructure Rehabilitation 2.75 0.29 3.04 13. Local Economic Development 1 0.67 1 0.28 1 0.95 4. Strategic Planning & Municipal Capacity Building 1 0.48 0.53 1.01 15. Proiect Management I 0.40 I 0.12 1 0.52 Iota1 Baseline Cost 1 6.50 1 1.65 1 8.15 Physical Contingencies 5Y0 1V0 Included above Price Contingencies 89' 37 Included above Total Project Costs' 6.5; 1.605 8.15 Front-end Fee 0.00 0.05 0.05 Interest during construction Total Financing Required 6.50 1.70 8.20 ' Identifiable taxes and duties are US$m 1.43, and the total project cost, net of taxes, is US$m 6.7. The share of project cost net of taxes is therefore 85%. 33 Annex 6: Implementation Arrangements PERU: Vilcanota Valley Rehabilitation and Management Project Project Implementation The project will be executed by the Ministry of Foreign Trade and Tourism (MINCETUR). A project implementation team (PIT) responsible for overall project coordination and supervision will be created in DNDT (the National Directorate of Tourism Development) within the Vice Ministry of Tourism. The PIT will consist of a project coordinator, a technical coordinator, and two financial management and procurement officers. The project coordinator and the financial managementofficer will be secondedfrom MINCETUR while other staff will either be seconded or recruited based on the availability of qualified candidates. DNDT has demonstrated the capacity to implement projects within the HSMP having successfully invested US$ 1.8 million towards the rehabilitation of Machu Picchu Pueblo over a nine month period in 2003. The *General Administration Office (OGA) within MINCETUR will provide adrninistrative support to the PIT in implementing the project. The project financial officer and the procurement officer will be located within the OGA and report directly to the project coordinator of the PIT. An assessmentof the financial management and procurement capacity of the DNDT hasbeenconducted and the results are summarized in Annexes 7 and 8. DNDT will be responsible for executing all studies, capacity building and technical assistance activities under the project. Local NGOs with extensive experience in participatory planning and community development, will execute the ProcessFramework for the Q'ente and Wayllabamba families that reside in the HSMP and practice subsistenceagriculture and cattle farming along the Inca Trail. The framework outlines a participatory process by which the communities will receive basic services and capacity building in order to limit adverseimpacts of agricultural and cattle farming on the Inca Trail. In order to ensure effective implementation of the resettlement component, a team of resettlement experts from the Ministry of Transportation will be contracted or seconded to provide the selectedfirm with technical assistancein the software of the RAP. Municipalities will receive training in financial management and procurement under the project and by SIAF. Selected firms may subcontract municipalities for small local works. Once certified for managing the sub-accountsaccording to Bank guidelines they will createmunicipal sub-accountsfor the execution of small works and services. The involvement of municipalities in project execution aims to encourage municipal participation and ownership of project activities. The inter-institutional collaboration agreements between MINCETUR and each municipality will specify both the terms and conditions of cooperation and the activities to be financed through eachsub-account. DNDT will also enter into agreementsto formalize cooperation with INC, INRENA, CATCCO, UGM and IMA. These agencies have agreed to coordinate work programs and contribute resources towards the implementation of specific project sub-components. Details of each agreementareprovided in Annex 6. 34 Lastly, a Committee of Notables will be formed to provide advisory support during implementation. The committee will not have ongoing management responsibilities and will meet every six months to review project progress and issue an advisory note with recommendations and conrment to the PIT. The advisory note will become part of public record and will be disclosed using print andelectronic media. 35 Annex 7: Financial Management and Disbursement Arrangements PERU: Vilcanota Valley Rehabilitation and Management Project The proposed financial management system relating to the Project has been reviewed by the Bank Financial Management Specialist under OP/BP 10.02, and the proposed arrangementsare acceptableto the Bank. The full assessmentis available in the Project files. As a result of the assessment,a time-bound action plan has been proposed and discussed with the Project Team. Successful implementation of the action plan will ensure adequate financial management arrangementsprior to effectiveness. The Project will be implemented in accordancewith the National System of Control which is regulated by the Controller General of the Republic and the National System of Accounting which is regulated by the Accountant General of the Republic. Basic organizational arrangementswill encompass a Project General Coordination supported by two main working groups responsible for management of technical and administrative tasks. The technical group will be composed of two Component Coordinators who will provide overall operational coordination and technical assistance to entities within and outside MINCETUR engaged in implementation of project components. Their work will be directly coordinated and supervised by the Project General Coordinator. Financial management, including Disbursements, and related administrative tasks will be coordinated by a FM Officer assisted by an Administrative Analyst. Both will be responsible for coordination, supervision and reporting of loan funds allocated for project implementation. They will coordinate their work closely with General Administrative Office (OGA) which will provide administrative support to the PIT in order to ensure smooth performance of budget, accounting and treasury transactions during project implementation. One of the key risks identified will be the ability of the OGA's staff to provide timely financial management and administrative services and support so that the Unit can meet project implementation needsand development objectives in the most efficient manner. To mitigate risks identified, the following measures have been proposed and included in the Financial Management Action Plan included in the Financial Management Assessment: (1) Hiring of key professional staff for the PIT; (2) Expansion of existing Manuals of the OGA to include the administrative and financial arrangementsfor the project; (3) Training to the PIT and OGA staff in bank financial management and disbursement procedures; (4) Implementation of loan managementmodule of the national integrated system, SIAF. Financial Reporting Beginning, no later than six months after effectiveness, the Borrower will prepare simplified consolidated semi-annual FMRs for the purpose of reporting project implementation but not as a requirement for disbursements. The FMRs will comprise: * A financial section specifying sources and applications of project resources and a statement of investment by project component reporting the current quarter and the accumulatedoperations against ongoing plans. 36 l An output monitoring section that: (i) describesphysical progress in the implementation of the Project, both cumulative and for the period covered by the report; and (ii) explains variancesbetween the actual and previously forecast implementation targets. * A procurement section setting forth the status of procurement under the Project and expendituresunder contracts financed out of the proceedsof the loan, as of the end of the period coveredby the report. Audit Arrangements The Borrower will provide the Bank with financial statements and audits annually for the PIT. Project accounts, including contracts and their modifications and amendments, as well as the deposits and withdrawals from the Special Account and the use of SOEs will be audited each year by an independent auditing firm acceptable to the Bank and under terms and conditions satisfactory to the Bank which will include a managementletter on the internal control structure. Annual audit reports with the related statementswill be submitted to the Bank within six months of the end of the Borrower's fiscal year. All supporting records will be maintained at the Project site for at least one year after the completion of the Project. The Bank's audit guidelines would be usedby the Borrower in determining the format and content of the annual financial statements and in preparing the audit TORs. The Borrower and the Bank agreedduring negotiations on the timetable for the appointment processof the auditors. The costs of the Project audits are subject to financing under loan proceeds. Table A. Auditing Arrangements Audit Report Due Date Project Financial Statements Annual within 6 months of Fiscal Year closing SpecialOpinions Annual within 6 months of Fiscal Year closing Disbursement Arrangements Disbursements will be in accordancewith the Bank's Disbursement Proceduresfor transaction- based disbursements. All applications to withdraw the proceeds of the loan will be fully documented, except for contracts not subject to prior review for which reimbursement will be made against certified statement of expenditures (SOEs). The PIT will be responsible for preparing withdrawal applications to be submitted to the Bank. This documentation will be retained along with all other supporting documentation for review by Bank supervision missions andindependentaccreditedauditors. During project preparation, the Task Team considered the possibility of facilitating the use of Special Account 90 day advance procedures to allow transfers of funds from the PIT to municipalities involved in implementation of the project thereby speeding up project implementation and decentralizing responsibility. A supplementary capacity assessmentwas therefore performed for the Provincial municipalities of Calca, Urubamba, and the district municipalities of Pisac, Ollantaytambo and Machu Picchu Pueblo. At this time, overall, 37 assessmentfound very low capacity at municipality level to ensure adequatefunds management, monitoring, timely justification of expenditures and reporting to the central PIT. Some of the reasons for this low capacity lie on the fact that these municipalities had not been trained in budget execution; lacked experience in controlling, monitoring, evaluation and reporting tasks andhad difficulties in constituting committees, within the municipal council. The MEF is currently rolling out the Municipal Version of SIAF (SIAF - GL), implementation of which would (i) strengthen current weak financial management capacity at municipal level, especially in the areasof managementof funds and bank sub-accountsand (ii) facilitate linkage of physical accomplishments and the utilization of funds. The task team envisagesthat once the Central PIT has (i) implemented arrangements satisfactory to the Bank and has put in place internal control systems that facilitate monitoring, control and reporting of funds sent to decentralized units (ii) Institutional Cooperation Agreements have been signed with participating municipalities, establishing guidelines for managing funds, accounting and reporting (iii) Annual Work Programs and Funding Requirements of these municipalities are defined, the Bank team could proceed to reassessthe feasibility of 90 day advances to these municipalities. This evaluation could be done as soon as progressis made in the financial management arrangements or before effectiveness of the loan. `In the casereadinessis not in place by effectiveness at the municipal level, consideration should be given to implement, if at all possible, on a case-by-case basis depending on the specific circumstances of each municipality involved in the implementation of the project. Special Account and Funds Flow The project will have accessto funds advancedby the Bank to a Special Account for processing disbursements to beneficiaries for those eligible expenditures under the project activities. One account in US dollars will be openedby the Borrower in the Banco de la Naci6n . This account will be managedby the PIT and funds will be usedfor expenditures related to the procurement of goods, works, services grants, training and operating costs. The Bank will deposit, upon borrower's request, an amount of US$400,000 as authorized allocation. This amount would be limited to the amount of US$150,000 until disbursements from the loan account exceed US$l ,ooo,ooo. Small Grants: as described above, funds flow will be centralized in the PIT. For the implementation of activities related to the small grants in the different municipalities, PIT will disburse the funds to the beneficiaries in accordance with the tranche schedule and physical progress specified in the Small Grant Agreement signed among MINCETUR, the respective Municipality and the beneficiary (i.e. community associations) of such grant. The roles and responsibilities of each party, including supervision by MTNCETUR will be detailed in such grant agreementand in the Small Grant Operational Manual. The total amount for such small grants by Municipality will not exceed US$40,000 equivalent and the amount of individual grantsmay vary dependingon the proposal submitted by the communities in eachMunicipality. Funds will be disbursedby PIT to beneficiaries when the tripartite financing agreementhas been signed, and in accordancewith the tranche schedule specified in the grant agreement. Following CDD approach, the funds would be transferred to the bank account of the community 38 association.The tranche payments will be releasedbasedon a lump-sum basis as describedin the agreement. The initial tranche will be releasedon signature of the financing agreement as an advance. This advance payment could not exceed 90 days of estimated expenditures and no additional transfers should be made to the community association's account until a satisfactory physical progressreport is presentedand received by MINCETUR. Since funding is made on a lump-sum basis as describedin the financing agreement,the periodic payments (tranches) would be recognized as eligible expenditures. The initial tranche payment (advance) could not be reported by PIT in a withdrawal application to the Bank as eligible expenditure until the first physical progress report is received and accepted as satisfactory by MINCETUR. The subsequentprogresspayments would not be considered advancessince they aremade againstphysical progressreports and as such could be reported as eligible expenditures immediately when payment is executed. However, it should be noted that all transfers made to the communities are only eligible for financing under the loan to the extent that the activities specified in the Small Grant Agreement to be executed by the community are completed by the closing date of the loan and no funds remained idle in the communities' bank accounts. Thus, supervision by MINCETUR is a key to successof the implementation of this component. Use of Statements of Expenditure (SOEs) Withdrawal from the loan account could be made on the basis of SOEs for the following expenditures: (a) works under contracts not exceeding US$SOO,OOOequivalent per contract, (b) goods under contracts not exceedingUS$250,000 equivalent per contract; (c) consulting services from individuals and firms under contracts not exceeding US$50,000 and US$lOO,OOO equivalent per contract respectively; (d) grants, (e) training and (f) operating costs. For all supporting documents for which withdrawal applications from the loan account are made on the basis of SOEs, the borrower will retain full documentation (including contracts, purchaseorders, . invoices, receipts and any other documents evidencing such expenditures) and make them available for review and examination to Bank staff in supervision missions and to the external auditors when performing the audit of the project accounts. Table B. Allocation of Loan Proceeds Expenditure Category Amount in US $ million Financing Percentage 1. Works 2.80 62 % 12. Goods I 0.28 I 5o %----~-I 63 % I r3.ces I 1.oo I 4. Training 0.16 35 % 5. Small grants 0.25 85 % 6. Operating Costs 0.46 85 % Total Project Costs 4.95 r Front End Fee 0.05 Total ] 5.00 I -----1 39 Annex 8: Procurement PERU: Vilcanota Valley Rehabilitation and Management Project A. General Procurement for the proposed project would be carried out in accordancewith the World Bank's "Guidelines: Procurement Under IBRD Loans and IDA Credits" dated May 2004; and "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" dated May 2004, and the provisions stipulated in the Loan Agreement. The general description of various items underdifferent expenditure category are describedbelow. For each contract to be financed by the Loan, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame are agreedbetween the Borrower and the Bank project team in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. Procurement Methods The procurement methods and the contract values for the use of each procurement/selection method arepresentedin Table B. Procurement of Works. Due to the small size of the project, no major civil works contracts are expected to be financed at project implementation. Minor works to be procured under this project will consist of the construction of environmentally sustainable storm. water drainage systems, improvement of basic sanitation and solid waste collection facilities, construction of visitor/interpretation centers, facilities for resettlement of approximately 60 vulnerable households, upgrading of pedestrian accesses,implementation of a sign systems to provide tourist with directions for historical and cultural monuments, and construction of a community telecenter in Aobamba. To this end, contracts estimated to cost more than US$250,000 equivalent per contract will be procured through NCB procedures. Procurement of small works contracts (PSW) with estimated value of US$250,000 equivalent or less per contract will be awarded with the use of price comparison of at least three quotations obtained from qualified domestic contractors. Total amount of works to be procured with the use of either method above noted will not exceedUS$4.84 million. Procurement of Goods. No major contracts for procurement of goods are either foreseenunder this project. Goods to be financed will be limited to the purchaseof equipment for interpretation centers and community telecenters. They shall be procured with the use of NCB procedures when grouped in packages of more than US$SO,OOOequivalent but less than US$350,000 equivalent per contract. In casethat goods can not be grouped in packageswith estimated value of more than US$50,000 equivalent per contract, they would be procured under contracts awarded with the use of price comparison (shopping) procedures of at least three quotations obtained from qualified domestic contractors. Goods to be financed under this loan will not exceedthe amount of US$441,500. Procurement of Non-Consulting Services. The project would finance contracts for the provision of services of a non-consulting nature for the organization and conducting of training activities for capacity building at participating municipalities. These latter will execute also services associatedwith the project sub-componentsfor tele-centers, visitor centers, addressing systems, improvements to Inca Trails and the development market place initiatives. Non- consulting services would be procured with the use of price comparison (shopping) procedures and the use of sample documents acceptable to the Bank. Total amount of non-consulting services to be financed under the project would not exceedUS$160,000. Selection of Consultants. Contracts for employment of firms and individuals will be procured for development of detail engineering designs related to solid waste systems; storm water drainage systems, improvement of tourist pedestrian access, tourist service facilities, signage system design for monument and cultural sites, rehabilitation of Inca architectural sites and hydrological agricultural infrastructure, development of tourist awarenessprograms addressedto local population and children, and improvement of small Inca paths; training of tourist service providers; technical assistancefor development of EIA studies related to potable water, sewerage and drainage systems, studies for collection and management of solid waste, Inca path load capacity studies, strengthening of strategic planning and capacity building of project involved municipalities, and supervision and evaluation of population resettlement; and project financial audits and procurement audits. Most consultant services will be procured through QCBS although other methods such as Consultant's Qualifications, Least Cost Selection, Single Source, and Sole Source will be also used for employment of firms and individuals. Total cost of contracts to be financed under the project areexpectednot to exceed US$2.92 million. Consulting servicesfor employment of individual consultants under development market-type of initiatives financed with small grant funds would be procured by participating communities with the use of Commercial Practices, acceptable to the Bank, based on the comparison of qualifications and criteria such as academic background, experience, knowledge of local conditions and language, and overall suitability for the assignment. The comparison of qualifications will be carried out with due consideration of at least 3 candidateswho shall meet minimum relevant requirements. The consultants will be selected on the basis of the best qualified amongst the candidatesconsideredfor a particular assignment. Short lists of consultants for services estimated to cost less than US$350,000 equivalent per contract may be composed entirely of national consultants in accordancewith the provisions of paragraph2.7 of the Consultant Guidelines. * Training. The project will finance contracts for the provision of training activities to municipal officials for capacity building purposes in the areas of finance, urban services and natural disaster prevention. Likewise, training program design and provision of such training to staff delivering tourist services will be also made available under the project. Total estimated cost of training amounts to approximately US$O.3million equivalent. Operational Costs. Expenses on account of project management and monitoring, including office supplies, utilities, rental, insurances, vehicles and equipment operation, transport, travel, per diems, supervision costs, andlocal contractual staff salariesbut excluding salaries of officials of the Borrower's civil service, at the national and local levels, would be financed as operational costs and procured using shopping procedures,when possible, and the implementing agency's 41 administrative procedures which were reviewed and found acceptable to the Bank. Expected total costs would not exceedthe amount of US$428,000 equivalent. * Small Grants. The project would provide small grants to community associations located within project participating municipalities in amounts not greater than US$50,000 equivalent each, to support community-driven initiatives aimed at promoting economic development. Eligible activities would be relevant to the development of human, social, natural, cultural and historical assetsof the Vilcanota Valley. Evaluation processesfor the selection of community initiatives eligible for small grants would be performed by a Special Committee comprised of representatives of MINCETUR, the participating municipality, and a relevant civil society organization under proceduresto be detailed in the Operations Manual. Procurement of goods and works required for the implementation of initiatives funded with such small grants would be carried out with the useof Community Participation proceduresagreedwith the agency's project implementing team, as describedin the OperationsManual. Total expected amount of grants for the purposesabovenoted would not exceedUS$250,000. B. Assessment of the agency's capacity to implement procurement Procurement activities will be carried out by the Ministry of Foreign Trade and Tourism (MINCETUR), through its Vice Ministry of Tourism. The Project Implementing Unit is staffed by 12 officials and the Procurement Unit is staffed by 1 Procurement Officer. The Manual will describe both institutional and implementation arrangements; the organizational structure and functions proposed for project implementation and coordination; and detailed procedures for procurement of goods and works, and selection of consultants for mandatory use of the Vice Ministry of Tourism and engagedexecuting agencies,including related workflows for interaction with project executing agencies. Standard project documents for procurement of goods and works; requestfor proposals from consultant firms; and standardletters of invitation and forms of agreementfor selection and contracting of individual consultants agreedfor the Project, will be included also in the Manual. An assessmentof the capacity of the Implementing Agency to implement procurement actions for the project was carried out by Keisgner D. Alfaro, Senior Procurement Specialist, on November 21,2003. The assessmentreviewed the organizational structure for implementing the project and the interaction between the project's staff responsible for Procurement and the Ministry's relevant central unit (Oficina General de Administration-OGA) for administration and finance. Most of the issues/ risks concerning the procurement component for implementation of the project identified at the time the capacity assessmentwas performed included the lack of: (i) prior experience in Bank-financed projects and insufficient knowledge of Bank procurement guidelines and procedures;(ii) experienced and skilled staff to implement Bank-financed project procurement; (iii) assignment of spaceoffice and office equipment to support adequatelyproject coordination tasks and administrative support tasks and; (iv) an integrated project management information system to enable monitoring, control and reporting tasks for efficient project coordination and decision-making. Corrective measureswhich have been agreed encompass: (i) provision of training in the use of Bank procurement guidelines not later than the project launching mission and technical 42 assistance and guidance by field-assigned Bank staff in the Lima Country Office; (ii) employment of a procurement officer with experience at implementation of Bank-financed projects; (iii) space office and provision of equipment was confirmed by the Borrower to the Bank and provided before end of appraisal mission; and (iv) an integrated project management information system will be fully implemented not later than the end of first year of project implementation. In order to improve the agency's overall capacity to implement procurement and thus to mitigate the above-identified risks, a Procurement Improvement Action Plan was proposed in the ACA report. B&k team discussions with MINCETUR's project team arebeing undertaken and a final agreementfor implementation of the plan is expectednot later than effectiveness. The overall project risk for procurement is HIGH. C. Procurement Plan Before project appraisal mission, the PIT submitted drafts of a global procurement plan for project lifetime and a first year of project implementation which provided the basis for discussion and setting of the thresholds and procurement methods to be used. Both draft plans were reviewed and comments provided by the Bank project team. The revised versions of both plans were finally agreedat the appraisal mission. Both, the global procurement plan together with a detailed procurement plan for the first year of project implementation were cleared by end of the appraisalmission and areavailable at the PIT's offices andproject files at Headquarters. Since most of procurement tasks will focus primarily on selection activities that will provide critical input from consultants for contracting of additional consulting services and works, twice- yearly reviews of procurement and selection plans shall be submitted, not later than May 30 and November 30 of each year of project implementation. D. Prior review thresholds Table B shown below summarizes the thresholds for use of different methods and for prior review assigned in accordance with the risk level assigned in the agency capacity assessment report and which correspond to those assignedto high risk agencies, consistent with thresholds issuedby the RPA Office for LAC Countries, per e-mail dated as of December 27,2002. Table B: Thresholds for Procurement Methods and Prior Review' 43 Contract Value Contracts Subject to Expenditure Category Threshold Procurement Method Prior Review (US$ thousands) (US$ thousands) 1. Works Contract = >3000 ICB All 30002 Contract >250 NCB Contracts = > $500 Contract c = 250 3 quotations (PSW) Two first contracts, and twice-yearly review of procurement plan. Post Review: random sample of contracts . Contract < 50 Community Participation (under small grants) 2. Goods and Non- Contract = >350 ICB All Consulting Services 350 > Contract > 50 NCB Contracts = > 250 and first two contracts Contract c = 50 National Shopping Two first contracts, and twice-yearly review of procurement plan. Post review: random sample of contracts Contract c 50 Community Participation (under small grants) 3. Services 3.1 Firms * Contract = >lOO QCBS All contracts, including TOR, RFP, shortlist of firms, full review of technical and final evaluation reports, and final negotiated contract Contract c 100 QCBS, CQ, LCS, and SSS TORs only, and twice- yearly review of selection plan. Post review: random sample of procurement contracts 3.2 Individuals Contract = >50 IC, and SSS All contracts, including Contract c 50 IC TOR, CVs and Form of Contract TORs only, and twice- yearly review of selection Contract c 50 Commercial Practices plan. (under small grants) Post review: random sample of contracts None. Prior review: twice-yearly review of procurement plan `Thresholds generally differ by country and project. Consult OD 11.04 "Review of Procurement Documentation" and contact the Regional Procurement Adviser for guidance. E, Frequency of Procurement Supervision Missions One every six months, includes one special procurement supervision for post-review/audits. F. Post Review Ratio One in 5 contracts for procurement of goods and selection of consultants for employment of firms and individuals. Attachment 1. Details of the Procurement Arrangement involving international competition. Goods and Works and non consulting services. (a) List of contract Packageswhich will be procured following ICB and Direct contracting: 1 2 3 4 5 6 7 8 9 Ref. Contract Estixnated Procurement P-Q Domestic Review Expected Commen No. (Description) Cost Method Preference by Bank Bid- (yes/no) (Prior / Post) Opening Date None (b) ICB Contracts estimated to cost above US$3,000,000 equivalent per contract for procurement of works; US$350,000 equivalent per contract for procurement of goods and services and; all Direct contracting will be subject to prior review by the Bank. Consulting Services. (a) List of Consulting Assignments with short-list of international firms. 1 2 3 4 5 6 7 Ref. Description of Assignment Estimate Selection Review Expected Comme No. cost Method by Bank Proposals WS$) (Prior I Submission Post) Date 4.3.3 Training courses in municipal :!70,000 QCBS Yes 0410112005 management, finance, urban services and natural disaster prevention (b) Consultancy servicesestimated to cost above US$lOO,OOOper contract and Single Source selection of consultants(firms) will be subject to prior review by the Bank. (c) Consultancy services estimated to cost above US$50,000 per contract and Sole Source selection of individual consultants will be subject to prior review by the Bank. 45 Annex 9: Economic and Financial Analysis PERU: Vilcanota Valley Rehabilitation and Management Project The project aims to establish the foundation for sustainabletourism development in the Machu Picchu Sanctuary and Vilcanota Valley through investments in tourism management capacity, urban infrastructure development, local economic development and the rehabilitation of historical and cultural sites. The project includes investments under four components including (i) tourism capacity building and infrastructure development; (ii) urban services and infrastructure rehabilitation; (iii) local economic development; and (iv) strategic planning and municipal capacity building. This Annex provides a surnrnary of a cost-benefit analysis conducted to approximate the net economic and social benefits resulting from project investments. Environmental degradation,poor tourism management, insufficient maintenance of sites and the inadequateprovision of infrastructure and services has resulted in the continued deterioration of historical and cultural assetsin the Vilcanota Valley. The inability to addressthese challenges could result in irreversible damage to these assetswhile also adversely affecting the livelihoods of communities in the Vilcanota Valley and the broader tourism sector in Peru. It is difficult to estimate the value of preserving cultural assetsin traditional economic terms. Many consider the aesthetic and historical value of World Heritage Sites such as Machu Picchu as infinite. Contingent valuation surveys are used to measure the aesthetic value of cultural assets. However, the cost of such surveys were not justified for the project. The analysis instead attempts to approximate the economic value of project investments primarily as a function of the potential impact on tourism in the Valley. Incremental Costs and Benefits The economic analysis involved an assessmentof costs and benefits of projects investments as compared to a realistic `without-project' scenario. Investment costs include the entire costs of investments made under the four components of the project amounting to US$8.2 million. The tourism capacity building and infrastructure development component includes US$3.08 million worth of investments to strengthen the tourism sector through investments in management capacity, content and infrastructure to increase the economic value of historical sites in the Valley. The urban services component involves investments totaling US$3.47 million to strengthenthe quality of service delivery in the five major towns and support the resettlement of vulnerable communities. The local economic development and municipal capacity building components involve a combined investment of US$1.65 million to catalyze local economic activity, improve municipal services and increase municipal revenues. The expected life of these investments are conservatively estimated at 7 yearsfrom project completion. Annual operation and maintenance incremental costs for physical investments and services that will needto be continued over the project life are estimated at 5% of costs. Key investments and services requiring operations and maintenance include tourism infrastructure, visitor centers, community telecenters, street addressing system, historical site rehabilitation and municipal capacity building programs. 46 The net benefits from the project include: (i) increased incomes and revenues generatedfrom increasedtourism to the Vilcanota Valley, the HSMP and the Inca Trail; (ii) creation of assetsfor resettled communities; and (iii) increased revenues to municipalities through service charges, fees andtaxes. In order to estimate increasesin tourism the analysis differentiates between all visitors to Cusco and those visiting the Inca Trail. The analysis also restricts itself to calculating the economic benefits from foreign tourists becauseaccuratedata on average expenditure by local tourists to the region was not available. This will invariably underestimate the actual net benefits of project investments as local visitors to the HSMP and Inca Trail constituted 29% of all visitors in 2002. Improvements in tourism services made under the project may increase the total number of tourists traveling to Cusco en route to sites in the region. This trend may be reinforced by the recentdiscovery of the Llactapata site. The analysis does not, however, calculate projections for the increased numbers of visitors. The region has a finite carrying capacity - to be analyzed under the project - beyond which point the attractivenessof visiting the region will diminish. The analysis instead estimates the economic benefit from increasing the averageduration of stay as a result of enhancing the attractivenessof historical and cultural sites in the Valley. Foreign visitors currently spendan averageof 2.08 days in the region. The Central ReserveBank of Peru has calculated that foreign tourists on average spend US$S6 per day during their stay in Peru. For the purposes of this analysis a conservative figure of US$SO for average daily expenditures by foreign tourists was used for calculating benefits. This figure is held constant throughout the project period. It is also assumedthat project investments will have an impact of increasing the averagetime spent in the region by foreign tourists by 0.05 days (1.2 hours) per year thereby increasing the averagestay for foreign tourists to 2.43 days by 2013. In the `without project' scenarioit is assumedthat the averagenumber of days and averageexpenditure remain constant throughout the project life. In order to calculate benefits from improving services on the Inca Trail it was assumed that without investments existing downward trends in foreign visitors to the Inca Trail would continue resulting in a loss of 29,000 foreign tourists through 2013. The impact of investments on the trail would result in the persistenceof existing numbers of foreign visitors. The DNDT has determined that visitors to the trail are usually younger, spent less time in the region and expend more on averageper day. The analysis therefore uses averageduration of stay figures of 1.89and averagedaily expenditure amounts of US$86 for calculating net benefits. The benefits from the resettlement of 60 families in Machu Picchu vulnerable to natural hazard is estimated at US$20,000 per family as a result of obtaining accessto land, housing, basic social servicesand infrastructure. Additional benefits include an estimated value for the elimination of risk of losing assetsfor the 60 vulnerable families. Benefits from municipal capacity building have beencalculated in terms of potential increasesin municipal revenuesfrom chargesfor the provision of municipal services. Approximately 11,070 householdsresidein the five Vilcanota Valley towns. Municipalities are currently able to collect 47 service fees from approximately 30% of these residents. It assumed that the fees charged for services during the duration of the project will be a conservative figure of S/O.lO/mo. The analysis assumesthat municipalities will increase collection efficiency from 30% to 90% as a result of increased capacity obtained under the project. Net annual benefits are calculated accordingly using the number of households,averageservice fee and improved collection rates. Summary of Economic Analysis The annual flow of net benefits are presented in the table below. The analysis yields a Net Present Value (at a 14% discount rate) of US$12.71 million and an Internal Rate of Return of 44.9%. ,Project Costs and Benefits (US$ million) Summary of Costs and Benefits 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Benefits 0.298 4.924 5.586 6.247 6.908 7.570 8.231 8.892 Investment Costs -1.685 -2.765 -3.750 Operation and Maintenance Costs -0.097 -0.641 -0.641 -0.641 -0.641 -0.641 -0.641 -0.641 Total Net Benefits -1.685 -2.765 -3.549 4.283 4.945 5.606 6.267 6.928 7.590 8.251 A sensitivity analysis was also conducted to estimate the robustness of these results. The analysis tests for changesin the averageduration of stay and the number of tourists that remain interestedin visiting the Inca Trail. For the variable `average duration of stay' the analysis uses as a maximum value an averageincreaseof 0.35 days and a minimum value of 0.07 days through 2013. The economic analysis assumesthat approximately 29,000 more visitors will visit the Inca Trail as a result of project investments. The `visitors to the Inca Trail' variable in the sensitivity analysis tests for a range of total number of tourists visiting the trail between 580 and 29,017. The analysis finds that the NPV for the project produces negative values for only a few combinations of the two analyzed variables. In sum, the economic feasibility is encouraging particularly when factoring in the conservative assumptionsmade during analysis. Sensitivity Analysis (US$ million) ;>: f, 3L2.710 1% 5% 15% 25% 35% 45% 50% 0.01 -4.944 -3.999 -1.637 0.725 3.087 5.449 6.630 0.02 -3.424 -2.479 -0.117 2.245 4.607 6.969 8.150 0.03 -1.903 -0.959 1.403 3.765 6.127 8.489 9.670 3 0.04 -0.383 0.561 2.923 5.285 7.647 10.009 11.190 r 0.05 , 1.137 2.082 , 4.443 6.805 9.167 11.529 12.710 48 Annex 10: Safeguard Policy Issues PERU: Vilcanota Valley Rehabilitation and Management Project The project objective is to support the Government of. Peru's efforts to enhance the environmental and socio-economic sustainability of historical, cultural and ecological assetsin the Vilcanota Valley including the Historic Sanctuary of Machu Picchu (HSMP) and the Sacred Valley of the Incas. This objective will be attained partly through the development of small targetedinfrastructure investments for the tourism sector and urban service provision. The small infrastructure works will essentially seek to reduce the impacts caused by current tourist activities, they will consist of both rehabilitation or construction, and will entail: (i) the construction of a network of visitor centers equipped with state-of-the-art facilities; (ii) a network of community telecenters aimed to serve as local business *incubators by providing access computer/internet, (both networks to be built at Machu Picchu Pueblo, Pisac, Ollantaytambo and Wigaywayfia); (iii) the construction of public toilets (on pilot basis) and garbage collection facilities along the Inca Trail; and (iv) the improvement, expansion and standardization of the signage system at historical and cultural monuments throughout the Valley and on the Inca Trail. Sitting, technical design and constructive characteristics of these small works will be defined during project implementation. The project may include an additional and more relevant infrastructure component, i.e.: the construction of a landfill site. Not only the location but also the inclusion at all of this component still has to be determined. Environment No major environmental impacts are envisioned as a result of this Category B project. Due to the nature of the small works and the still not sure inclusion of the landfill component in the project, no EIA was requestedin advancefor project approval. However, in order to assurethat all these infrastructure works will comply with Bank safeguard policies during project implementation, the project has developed two Environmental Framework Guidelines- included in the project file (see Annex 12 and available at the InfoShop-, one for small infrastructure works and one for landfill siting and construction. These Frameworks include the following methodological tools: (a) a guide for project categorization basedon type of project and level of sensitivity, taking into consideration the Safeguard Policies of the Bank; (b) a Fieldwork Checklist to determine potential social and environmental impacts of infrastructure subprojects; and (c) an environmental manual for all infrastructure components which addressesamong other items: site selection, specific norms during construction activities for contractors, communications with community, chance-finding procedures and environmental supervision during the construction. Every infrastructure work will follow the same procedures for environmental evaluation, i.e.: evaluation under the Environmental Framework by local consultants,and reviewed and approvedby the environmental specialist of the team. The Environmental Frameworks will be included aspart of the operations manual, in the bidding documents and as Annexes to the contract with the construction companies. The Project Implementation Unit will be responsible for ensuring the applications of the Environmental Framework Guidelines. In addition, the project will seekto further reduce the impacts causedby tourism development by including a regional Strategic Environmental Assessment (SEA). The SEA will involve a comprehensive regional analysis of the likely medium- to long-term environmental impacts in the Vilcanota Valley and HSMP from tourism, industrial activity, agriculture and related demographic and resource use patterns. The assessmentwill serve as a 49 strategic environmental planning tool for regional and municipal governments aimed at monitoring and mitigating any potential problem. Key policy reforms and investment priorities will also be identified through the assessment. (i) Possible Landfill Construction Since the inclusion of a component with a landfill construction is not sure yet and will be decided during project implementation, a special Environmental Framework Guidelines has been prepared. Main impacts to be addressed during construction phase and included in the Guidelines are: (i) loss of vegetation and fauna from clearing of secondary forests for site preparation (a re-vegetation plan will be included); (ii) reduced replenishment of the underlying aquifer; and (iii) other potential impacts such as construction nuisance including disposal of construction waste, noise, increasedtraffic, dust, impacts on other road users. Potential impacts during operations include increasedtraffic, odor, noise, litter, visual impacts, health and safety of workers on the site (dealing with healthcare and municipal waste, operation of sensitive and/or heavy equipment), disposal of solid and liquid waste streamsgeneratedon site. To mitigate the negative environmental impacts of inadequate solid waste disposal, the engineering designs for the dumpsite closure and construction of the landfill will be carried out according to internationally acceptedstandardsto ensure adequateprovision for waste disposal and protection of the environment. The construction of the landfill will feature: 0i Re-shapingof the external parts of the landfill to improve slopes and createterraces, (ii) Low-permeability basal liner, (iii) Construction of a leachatecollection system, (iv) Construction of gascollection system, (V > Low-permeability engineeredfinal cover, (vi) Surface run-off drainage, (vii) Monitoring plan including groundwater,leachate,etc. Environmental category and justification/rationale for category rating: B - Partial Assessment: The project has been classified as a category `B' becauseminimal potential adverseimpacts can be mitigated. Impacts evaluation and mitigation measureswill be carried out and determined by the application of the two Environmental Framework Guidelines one for small- infrastructure works and one for landfill sitting and construction. EMPs will be prepared for each infrastructure component. For Category A andB projects, timeline and status of EA: The Environmental Frameworks were received on April 12,2004. They were approvedby the LCSES QAT on April 27,2004 pending minor changes. The frameworks were submitted to the InfoShop on May 7, 2004. The documentswere made locally available at the Direcci6n Regional de Industria y Turismo (DRIT) and Instituto National de RecursosNaturales (INRENA). Determine whether an environmental management plan (EMP) will be required and its overall scope,relationship to the legal documents, and implementation responsibilities. For Category B projects for IDA funding, determine whether a separateEA report is required. What institutional arrangementsareproposedfor developing and handling the EMP? 50 EMPs for each specific infrastructure component will be developed as works are defined and sited. The EMP will follow a prescribedformat, basedon the methodological tools developed in the Environmental Frameworks, which will ensure comprehensiveness and identification of adequatemonitoring indicators. In addition, the Frameworks already contained basic "chance find" procedures and environmental recommendations during construction for contractors in chargeof implementing the infrastructure works. The preparation and implementation of a EMP will be required through the Frameworks and these documents will be included in the bidding documents and constructions contracts. How will stakeholdersbe consulted at the stageof (a) environmental screening and (b) draft EA report on the environmental impacts andproposedEMP? As part of the EA processthe main stakeholderswere consulted, i.e.: local municipal authorities,. Comisi&r Peru UNESCO (COPESCO), Direction National de Desarrollo Turistico (DNDT), Instituto National de Cultura (INC), Instituto National de Recursos Naturales (INRENA). The main infrastructure works were discussedby the team in several meetings with this institutions and the environmental specialist visited the involved communities. Main concerns of the communities were not related to the small infrastructure works but mainly to resettlement issues. Regarding the construction of a sanitary landfill, during consultations this was identified as first priority in most of the villages and some of them have the sitting issue solved at least in social terms, avoiding as a consequencethe NIMBY syndrome. A throughout process of consultation was carried out asdiscussedin Annex 16 Social The project has identified 60 families in Machu Picchu Pueblo that reside in outside town boundaries on land extremely vulnerable to natural disasters including floods and landslides. These families will be resettled within the pueblo or at an acceptablelocation identified outside the town. A Resettlement Action Plan (RAP) has been developed by the borrower in consultation with the affected families (seeAnnex 17 for complete RAP). The RAP includes a detailed baseline socio-economic study of the affected families (socio-economic study included in project files). Additionally, the project has identified 47 farmer families living along the Inca Trail within the Historic Sanctuary of Machu Picchu. The farmer settlements infringe upon Incan ruins that are part of the cultural patrimony of the region and important tourist attractions in the HSMP. The farmers are dependent on agriculture and cattle raising practices that adversely affect the local environment. In order to address these impacts the borrower has prepared a Process Framework (see Annex 17) in compliance with OP 4.12 that will provide these families with access to alternative income generation activities. Irnplementation of the RAP and ProcessFramework will be financed under the project. Indigenous People It has been determined that the Indigenous Peoples Policy is not triggered by the project. Local residents to be impacted by the project do not qualify as indigenous peoples as defined in the Indigenous PeoplesOD 4.20. Primarily, residents of the Vilcanota Valley cannot be described to constitute `social groups with a social and cultural identity distinct from the dominant society that makes them vulnerable to being disadvantagedin the development process' as outlined in paragraph 3 of the policy. Additionally, communities in the Vilcanota Valley to be directly 51 impacted by the project to not exhibit characteristics as outlined by the five eligibility criteria in paragraph 5 of QD 4.20 (seeAnnex 10 for further clarification on OD 4.20). The table below summarizes the determination made regarding each of the eligibility criteria as outlined in paragraph5 of the Indigenous PeoplesOD 4.20. Criteria in Para 5 of OD 4.20 Explanation a) a close attachmentto Project affectedcommunities in the towns of the ancestralterritories andto the Vilcanota Valley do not demonstrateany close naturalresourcesin theseareas attachmentto ancestralterritories or natural resources in the region. Many residentshaveimmigrated to the region to participatein the tourism industry. b) self-identification and A vast majority of residentsto be affected by the identification by othersas project in the areacan be describedasAndean people. membersof a distinct cultural Thesecommunities cannotbe classified as culturally group distinct in the region in that they arethe dominant cultural group in the area. c) an indigenouslanguage, Communities to be affectedby the project speak often different from the Spanish,the national language,andmay also speak national language Quechua,the regional Andean language. d) presenceof customary Amongst communities directly affectedby the project social andpolitical institutions the primary social andpolitical institutions are non- customary in nature. Theseinstitutions include municipal governments, `mesasde concertacion and local NGOs andcommunity-based associations. e) primary subsistence-oriented Project affectedcommunities arenot primarily production dependenton subsistence-orientedproduction. Residentsin the Valley areengagedin a diverse setof occupationsincluding tourism services,small enterprisesandagricultural production. 52 Annex 11: Project Preparation and Supervision PERU: Vilcanota Valley Rehabilitation and Management Project Planned Actual PCN Review 04/21/2003 0?/08/2003 Initial PID to PIC 0713012003 07/30/2003 Initial ISDS to PIC 0810812003 07/30/2003 Appraisal - Retroactive 0310812003 04/27/2004 Negotiations 06/01/2004 0711912004 Board/RVP Approval 07/01/2004 Planned date of effectiveness 10/30/2004 Planned date of mid-term review 0310312006 Planned closing date 0913012008 Key institutions responsiblefor preparation of the project: Ministry of Foreign Trade and Tourism, Vice-Ministry of Tourism, National Directorate of Tourism Development Bank staff, consultantsand partnerswho have worked on the project include: 53 Name Title Unit Roberto Ch6vez Lead Urban Specialist TUDUR Maria Emilia Freire Regional Adviser LCSFP Isabella Micali Drossos Sr. Counsel LEGLA Horatio Terraza Environmental Specialist LCSEN Roby Senderowitsch Social Scientist LCSPR Alonso Zarzar Sr. Social Scientist LCSFP Maria Elizabeth Dasso Sr. Social Dev. & Civil Sot. Specialist LCCPE Andrea Silverman Sector Manager LCSER Franz R. Drees Sector Leader LCSFP Jorge Luis Archimbault Country Officer LCCPE Cristina Velazco-Weiss Team Program Assistant LCSFU Maria Angelica Sotomayor Economist LCSFW Rafael Vera Water & Sanitation Specialist EWDAN Oscar Castillo Community Development Specialist EWDAN Keisgner Alfaro Sr. Procurement Specialist LCOPR Patricia MacKenzie Sr. Financial Management Specialist LCOAA Gladys Elizabeth Lopez Information Specialist LCCPE Taimur Samad Consultant LCSFU Erika Puspa Consultant TUDUR Victor Endo Consultant Maria Isabel Vargas Consultant Ephim Shluger Consultant WB Emilio Benjamin Guerra Consultant Cecilia Femandez Consultant WB Arturo Barra Zamalloa Consultant Bruno Hemani Knowledge Intern Jonathan Tourtelot Director Sustainable Tourism National Geographic Society Norma Barbacci Director of Programs World Monument Fund Jim Ireland President, Erin Consulting Eco-Industrial Consortium Martha Lombard Director, Spatial Focus Inc. URISA International Bank funds expendedto date on project preparation: 1. Bank resources:US$148,000 2. Trust funds: 3. Total:$US 148,000 Estimated Approval and Supervision costs: 1. Remaining costs to approval:$50,000 -- not including US$ 400,000 GEF funds (applied for) to effectiveness; 2. Estimated annual supervision cost: $75,000 54 Annex 12: Documents in the Project File PERU: Vilcanota Valley Rehabilitation and Management Project The following documents arein the file at www.avudaurbana.com: HSMP Process Framework de las Familias de Q'ente y Wayllabamba. MINCETUR, Ministerio de Comercio Exterior Turismo Plan de Reasentamientode 60 Familias Urbanas de 1Mach.uPicchu Pueblo. MINCETUR, Ministerio de Comercio Exterior Turismo Guia Marco para la Evaluation Ambiental de Obras de Infraestructura Menor. MINCETUR, Ministerio de Comercio Exterior Turismo Guia Marco para la Evaluation Ambiental de Proyectos de Relleno Sanitario . MINCETUR, Ministerio de Comercio Exterior Turismo Plan de Emergencia para Afrontar Aluviones de1 Centro Poblado de Machu Picchu - Aqua Calientes. Programa Machu Picchu, PNUD, Gobierno Regional Cusco, Municipalidad Distrital de Machupicchu Plan Maestro de1Santuario Historic0 de MachuPicchu. Instituto de Recursos Naturales, Peru (IRENA) Plan de Ordenamiento Urban0 de1Poblado de MachuPicchu. PROFONANPE, Fondo National para Areas Naturales Protegidas Recuperation Integral de1Santuario Historic0 de MachuPicchu. MINCETUR, Ministerio de Comercio Exterior Turismo Situation Actual de1 Poblado de MachuPicchu: Aquas Calientes. MINCETUR, Ministerio de Comercio Exterior Turismo Procedimiento para Ingresar por Internet a un Proyecto en el Banco de Proyectos. Enlace. MINCETUR, Ministerio de Comercio Exterior y Turismo Propuesta Base Gesti6n de Gobierno Municipal 2003-2006. Municipalidad de Machu Picchu. Censo de Establecimiento de Actividades Turisticas y Servicios Conexos (TCCA). Directorio de Establecimientos Clasificados por Actividad Economica. Hermanamiento de Ciudades Anteproyectos Arquitect6nicos - Diciembre 04,2003 Proiect Information Document (PID) Concept Stage - Agosto OS,2003 Integrated SafeguardsData SheetConcept Stage- Agosto 5,2003 Communication - Mayo OS,2003 Back to Office Report - Abril21,2003 Ayuda Memoria - AbrilO3,2003 Trabaio de Campo en el Valle de1Vilcanota - Abril2003 Carta al Gobierno de Peru - Marzo 26,2003 Vilcanota Valley Rehabilitation ProposedLearning and Innovation Loan Draft Document 55 Fostering Community-Driven Development: What role for the state? Journal of n Development Studies - World Bank Images, Maps and Fotos a SantuarioHist6rico de MachuPicchu, Camino de1Inca y Valle Sagrado m Valle de1Vilcanota y PropuestaZonificaci6n de1Santuario Historico MachuPicchu a Cartografia Temhtico Plan Maestro MachuPicchu 2002 = MachuPicchu Pueblo m Otra Cartografia Technical Annex Inforrne sobretenenciay sistemasde information de tierras - Victor Endo. SUB COMPONENTE: meiorar 10sservicios de aqua y saneamiento en las localidades Urubamba, Ollantaytambo, Pisaq, Calca y Machupicchu - OscarCastillo. Misicin de Identification de1Banco Mundial: Reporte de Reordenamiento Territorial y Reasentamientode Vivienda - Ma. Isabel Vargas Mata. Reporte de la Mision de Identification para la Reordenacion y Rehabilitation de1Valle de1Vilcanota, Peru - Emilio Benjamin Guerra Sousa. Trabajo de Campo en el Valle de1Vilcanota -Roby Senderowitsch. ResumenPreliminar de1Tract0 Sucesivo Registral de La Hacienda Sillque Ubicada en El Distrito de Machupicchu y Dentro de1Santuario Historic0 de Machupicchu Reporte sobreCuestionesde Tenencia de Tierras y Temas Institucionales - Victor Endo 56 Annex 13: Statement of Loans and Credits PERU: Vilcanota Valley Rehabilitation and Management Project PERU STATEMENT OF IFC's Held andDisbursed Portfolio In Millions of US Dollars Committed Disbursed IFC IFC Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic. Agrokasa 5.40 0.00 0.00 0.00 5.40 0.00 0.00 0.00 Alicorp 17.33 0.00 20.00 14.29 17.33 0.00 20.00 14.29 FTSA 7.50 0.00 1.50 0.00 7.50 0.00 1.50 0.00 ISA Peru, SA 17.66 0.00 0.00 7.70 17.66 0.00 0.00 7.70 Inka Terra 5.00 0.00 0.00 0.00 5.00 0.00 0.00 0.00 Interbank-Peru 8.00 0.00 0.00 0.00 8.00 0.00 0.00 0.00 z/o3 Interseguro 0.00 0.59 0.00 0.00 0.00 0.59 0.00 0.00 Laredo 8.57 0.00 5.00 0.00 8.57 0.00 5.00 0.00 3 Latin0 Leasing 6.04 6.46 0.00 0.00 6.04 6.46 0.00 0.00 2 MIBANCO 2.33 0.00 0.00 0.00 2.33 0.00 0.00 0.00 Milkito 0 3.50 0.00 3.50 0.00 3.50 0.00 3.50 0.00 191 Minera Regina 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Norvial S.A. 18.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Paramonga 13.17 0.00 0.00 11.12 13.17 0.00 0.00 11.12 Peru OEH 6.00 0.00 4.00 0.00 2.00 0.00 4.00 0.00 4 Peru Prvtzn Fund 0.00 9.65 0.00 0.00 0.00 9.65 0.00 0.00 I Peru Prvtzn Mgmt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3/96/00/O I Quellaveco 0.00 0.75 0.00 0.00 0.00 0.69 0.00 0.00 RANSA 8.13 0.00 0.00 0.00 8.13 0.00 0.00 0.00 3 TIM Peru 70.00 0.00 0.00 0.00 70.00 0.00 0.00 0.00 Tecnofil S.A. 5.40 2.00 0.00 0.00 5.40 2.00 0.00 0.00 UPC 7.00 0.00 0.00 0.00 7.00 0.00 0.00 0.00 3194199 Yanacocha 20.00 0.00 0.00 35.00 10.00 0.00 0.00 35.00 Total portfilio: 229.03 19.45 34.00 68.11 197.03 19.39 34.00 68.11 Approvals Pending Commitment FY Approval Company Loan Equity Quasi Partic. 2002 Inka Terra Swap 0.25 0.00 0.00 0.00 Total pending committment: 0.25 0.00 0.00 -0.00 Difference between expected and actual Original Amount in US$ Millions disbursements N Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev'd 2003 PE- Rural Education 52.50 0.00 0.00 0.00 0.00 52.50 0.00 0.00 2003 PE NATIONAL RURAL WATER 50.00 0.00 0.00 0.00 0.00 49.29 3.79 0.00 SUPPLY AND 2003 GEF PE PARTICIPATORY MGMT PROT 0.00 0.00 0.00 14.80 0.00 14.80 1.00 0.00 AREAS 2003 PE Trade Facil. and Prod. Improv T. A. 20.00 0.00 0.00 0.00 0.00 20.00 0.00 0.00 2003 Lim.a Water Rehab Add'1 Financing 20.00 0.00 0.00 0.00 0.00 20.00 0.08 0.00 2001 GEF PE Indigenous Management Prot. 0.00 0.00 0.00 10.00 0.00 8.73 0.97 0.00 Areas 2001 PE SECOND RURAL ROADS PROJECT 50.00 0.00 0.00 0.00 0.00 34.54 0.97 0.00 2000 PE-HEALTH REFORM PROGRAM 80.00 0.00 0.00 0.00 0.00 19.93 -7.07 -7.07 2000 PE Indigenous Peoples Development 5.00 0.00 0.00 0.00 0.00 3.88 3.88 1.18 (PROJECT) 2000 PE RES. & EXTENSION 9.60 0.00 0.00 0.00 0.00 4.23 -5.37 2.03 1999 PE URBAN PROPERTY RIGHT 38.00 0.00 0.00 0.00 0.00 6.62 6.62 0.00 1997 PE IRRIGATION SUBSECTOR 85.00 0.00 0.00 0.00 0.00 14.94 14.94 6.29 PROJECT 1997 PE SIERRA NATURAL RESOURCES 51.00 0.00 0.00 0.00 0.00 4.87 4.87 0.00 MANAGEMENT 1995 LIMA WATER Rehabilitation & Mgt Proj. 150.00 0.00 0.00 0.00 0.00 0.49 0.49 -0.08 Total: 611.10 0.00 0.00 24.80 0.00 254.82 25.17 2.35 58 Annex 14: Country at a Glance PERU: Vilcanota Valley Rehabilitation and Management Project Latin Lower- POVERTY and SOCIAL America middle- Peru. & Carib. income Development diamond* 2001 Population, mid-year (mi#ions) 26.1 524 2,164 Life expectancy GN1 per capita (A t/as method, US$) 2,000 3,560 1240 GNI (A tlas method, US$ billions) 52.2 1,862 2,677 Average annual growth, 1995-01 Population (%I 1.7 15 Ii0 Labor force (5%) 2.9 2.2 12 GNI Gross Per primary Most recent estimate (latest year available, 1995-01) capita nrollment Poverty(%ofpopulationbelownationalpovertyline) 49 .. . Urban population (%of to ta/popu/ation) 73 76 46 Life expectancy at birth (years) 69 70 69 Infant mortality (per @XXIlive births) 32 29 33 Child malnutrition &of children under51 a 9 11 Access to improved water source Access to an improved water source (%of population) 77 a5 a0 Illiteracy (%of population age 6tj lo Ii 6 Gross primary enrollment @of school-age population) l26 l30 107 -Peru M ale P7 I31 lo7 .._..__......-...Lo wr-middle-into me gro up Female t25 xza 07 -l KEY ECONOMIC RATIOS and LONG-TERM TRENDS 1981 1991 2000 2001 Economic ratios* GDP (US$ billions) 25.0 34.5 53.5 54.0 Gross domestic investment/GDP 34.3 17.3 20.3 18.4 Trade Exports of goods and services/GDP 16.1 P.2 16.0 i5.8 Gross domestic savings/GDP 30.7 15.0 -I82 xi.9 Gross national savings/GDP 1. 9.2 i7.4 16.6 Current account balance/GDP -6.9 "4.4 -2.9 -2.0 Domestic Interest payments/GDP 2.3 1.1 2.7 2.5 lnves tment savings Total debt/GDP 34.4 60.0 53.5 47.4 Total debt service/exports 59.0 25.9 42.4 46.3 Present value of debt/GDP .. .* 53.1 .. Present value of debt/exports .* .. 282-i .. Indebtedness 1981-91 1991-01 2000 2001 2001-05 (average annual gro wth) -Peru GDP -0.6 , 4.3 3.1 02 3.9 GDP per capita -2.7 2.6 1.4 -14 22 .. . ... Lo wer-middle-income VUP STRUCTURE of the ECONOMY 1981 1991 2000 2001 Growth of investment and GDP (%) (%of GDP) Agriculture lo2 a.4 8.6 8.6 Industry 42.0 27.1 29.7 29.8 Manufacturing 36.1 17.5 15.6 15.4 Services 47.8 64.4 61.7 61.6 Privateconsumption 59.1 77.2 70.6 71.9 1-3o1 I General government consumption 102 7.7 112 11.2 Imports of goods and services 19.7 14.5 l7.9 17.3 -GDI -GDP 1981-91 1991-01 2000 2001 Growth of exports and imports (%) (average annualgro wth) Agriculture 2.3 6.0 6.4 -0.6 3o Industry -0.1 4.9 3.4 OS7 15 Manufacturing -0.3 3.5 6.7 -1.1 Services -1.3 3.8 2.4 0.1 0 Private consumption 0.0 3.7 3.9 I.3 -15 General government consumption -2.0 5.1 5.1 Gross domestic investment -32 5.3 -3.7 Imports of goods and services -2.3 7.0 3.6 59 Peru PRICES and GOVERNMENT FINANCE * 1981 1991 2000 2001 Inflation (%) Domestic prices (2%change) 15 Consumer prices 74.4 409.5 3.8 2.0 10 Implicit GDP deflator 64.8 379.9 3.6 1.3 Government finance 5 &of GDP, includes current grants) 1 0 C went revenue *. l2.0 14.7 34.1 96 97 98 99 00 0 Current budget balance .. -0.6 -0.2 -0.6 Overall surplus/deficit .. -2.5 -2.7 -2.8 ------GDPdeflator -CPI _ TRADE 1981 1991 2000 2001 Export and import levels (US$ mill.) (US$ millions) Total exports {fob) .. 3,406 7,034 7,x)8 10,000 Copper .. 742 931 987 Fishmeal .. 441 873 835 7,500 Manufactures .. 994 2,044 2,181 Total imports (cif) .. 3,595 7,351 7,198 5,000 Food .. 474 482 530 Fuel and energy .. 368 1,084 907 2,500 Capital goods .. 935 2,x)9 $9 11 0 Export price index (I995=XIO) *. 83 83 79 95 96 97 98 99 00 01 Import price index (7995=ZIoO) .. 86 x)1 98 Terms of trade (995=aOj .. 97 82 80 1 BALANCE of PAYMENTS 1981 1991 2000 2001 Current account balance to GDP (%) 1 (US$ millions) Exports of goods and services 4,oP) 4,232 8,614 8,597 Imports of goods and services 4,889 4,833 9,724 9,487 Resource balance -870 -601 -1,llO -890 Net income -1,019 -137-l -1,452 -1,203 Net current transfers l74 467 993 999 Current account balance -1JS - 1,505 -1,569 -1,094 Financing items (net) 1,026 1,000 1,379 1,542 Changes in net reserves 689 504 I90 -448 Memo: Reserves including go Id (US$ millions) 0 2,999 8,632 8,930 Conversion rate @EC, localAX%) 4.22E-7 0.8 3.5 3.5 EXTERNAL DEBT and RESOURCE FLOWS 1981 1991 2000 2001 r (US$ millions) / Composition of 2001 debt (US$ mill.) Total debt outstanding and disbursed 8,586 20,716 28,606 25,639 IBRD 416 l-Q0 2,590 2,625 A: 2,625 IDA 0 0 0 0 G: 3,038 Total debt service 2,493 l-52 4274 4,616 IBRD 49 777 282 300 IDA 0 0 0 0 Composition of net resource flows Official grants 54 251 `159 .* Official credit0 rs lO3 l9 627 7l7 Private creditors 65 -65 668 -2,64 Foreign direct investment 725 -7 680 *a Portfolio equity 0 0 205 .. E: 8,399 World Bank program Commitments I43 0 5 I50 A - IBRD E - Bilateral Disbursements 76 0 266 149 B - IDA D - Other multilateral F - Private P rincipal repayments 20 94 93 114 C-IMF G - Short-term 60 Annex 15: Community Consultations PERU: Vilcanota Valley Rehabilitation and Management Project This provides a detailed description of the participatory socio-economic risk assessmentand a community consultation processconductedto inform project preparation. Social and Institutional Assessment and Risks Analysis in the Vilcanota Valley A Social and Institutional Assessmentand Risks Analysis in the Vilcanotu Valley was conducted by a local NGQ Centro Bartolome de las Casas(CBC) in Cusco. The assessmentidentified three types of conflicts: (i) institutional conflicts, (ii) socio-environmental conflicts, and (iii) socio- economic conflicts. The assessmentalso identified three types of threats: (i) environmental (frost and drought, landslides, erosion, floods, extinction of wild species and water pollution); (ii) economic (inadequateroad system linking rural communities to economic centers,unplanned industrial development and low profitability for agricultural and livestock); and (iii) socio- political (rapid urban growth, limited access to basic services from the poor, corruption, clientelism and the reappearanceof terrorism). CBC organized the classification of these conflicts (summarized in Tables A-D below) and prepared a directory of key stakeholders to assist DNDT in project design and implementation. The assessment,included in project files, also includes recommendations for all conflicts and risks. These are: Balance rural development priorities with tourism promotion under the project. Over 50% of residentsin the Vilcanota Valley have only tenuous links to the tourism sector and are dependent on agricultural and livestock production. Rural districts in the high and middle areasof the river basin lack basic infrastructure, social services and accessto markets for agricultural production. The project should facilitate accessto rural infrastructure, roads connectivity investments, and agriculture and livestock promotion. support services to strengthen the regions rural economic base. Reinforce Vilcanota Valley role as a highlands-ruinforest connection urea. The Vilcanota Valley servesas a strategic economic role of connecting highlands and rainforest zones in the region in addition to being the primary tourist destination in Peru. Road interconnection is critical to facilitate the Valley's integration into local, regional and national economic-productive systems. A road interconnection plan should be established with technical, economic and socio environmental studies. The transportation planning process should involve community participation and strengthenthe emerging practice of concertacidn (public dialogue) with local authorities. A focus on regional integration of the Valley must respond both tourism sector and local economic development (in particular agricultural and livestock activities) priorities. In this regard, a detailed feasibility study for the rehabilitation of the Cusco-Quillabamba railway and the Santa Teresa - Mollepata road and/or other alternative communication routes for Santa Teresa and Quillabamba/ La Concepci6n. Strengthen ongoing mesas de concertucicjnprocess. Local mesas de concertacio'n organized in municipalities and around key sector priorities are very active in the Valley. These spacesfor public dialogue could be strengthenedto serve as planning spacesto analyze and resolve existing social and economic conflicts. It is critically important for local governments and mayors' to be systematically involved in the public dialogue process. The project should support participatory 61 planning in the Valley and facilitate the participation of national, regional and local government officials. A participatory budgeting process mandated under new national legislation has also been initiated by municipalities in the region to prepare 2004 budgets. The project may also consider supporting efforts to link mesasde concertacidn with the new budgeting process. The assessment also recommends that local private sector interests be incorporated into the consultation process. A seriesof more specific recommendations to deepenand strengthenlocal participation include: a. Establish the Committee for the Management of the Vilcanota River basin as an aggregate concertacion space in the area. Smaller concertacion spaces should be networked. * These include, for example, Committees for District and Provincial Development, Concertacion Tables to Fight Poverty and specific resource management bodies including micro-river basin committees. b. Promote the participation of the municipalities and local mesasde concertacio'nat district and provincial levels. To improve the efficiency of dialogue a sub-committee for the SacredValley could be establishedat the regional level. c. In the HSMP, the Management Committee, regulated properly by the Natural Protected Areas Law, should be open to regular public dialogue. An important task of the Management Committee would be to manage the reformulation process of the HSMP Master Plan 2004-2008as critical tool for internal management. d. Support the initiative of the Regional Government of Cusco to create a Regional Council for Tourism to coordinate local tourism policy. The proposal is the primary tourism development priority identified in the Coordinated Regional Development Plan. It is necessaryfor this initiative to be supported within the long-term development guidelines linked to a national policy for sustainabletourism. The main role of this body would be to lead tourism policy development in the region. Clarify legal framework. Numerous conflict in the region across social, environmental and political carenasstem from inconsistent, overlapping and misinterpreted laws and regulations. The ongoing decentralization process requires further clarification regarding the transfer of responsibilities to local levels of government. Reinforce CONAM role in the resolution of regional environmental conflicts. A complex set of regional environmental problems have emerged in the Valley that require regional coordination and consensuson mitigation strategies. CONAM is well paced and has the mandate to serve as a coordinating body to resolve environmental conflicts that crossjurisdictions including regional solid waste management,wastewater treatment and the pollution of waterways. Develop a regional solid waste management system. The gap between waste generation and management capacity is at crisis levels given the huge volume of tourist activity in the region. Municipalities areill-equipped to treat and manage solid waste. A regional waste management is needed that includes improved collection, organic composting system, recycling and regional landfill development. 62 Table A: Environmental Threats rypes of Effects - rhreat Threat Description rests and Theseclimatic factors should be considered as Sudden temperature changes affect health in particular among Natural roughts :onditioning because they are proper from these children. In the whole Valley, respiratory infections are in the znd Socio- :cological floors. However, because of the climatic first place among morbidity cases. As of 3000 meters above sea :hanges that are taking place in the planet (greenhouse natural level the uncertainty about farm crops has increased together :ffect) the local stakeholders consider that it is more with that of fodder demand for livestock. md more unpredictable, and the frosts and droughts Less agricultural and livestock productivity. appear at any time in the year. liding Sliding land erosions caused by natural phenomena Damages to infrastructure, irrigation channels, roads, bridges, rosions :Rain, earth quakes) or because those caused by men housing, farm crops, Ianthropic) activities (Deforestation, Filtrations, Damages to the population nadequate land occupation). The most critical areas Damages to agricultural and livestock production He in the districts of Santa Teresa, Mollepata $rigaciBn La Estrella), Calca ( Qocchoc micro river )asin) and Pisaq (human settlement in the community >f CUYO Chico ) ;loods Caused by improper use of the territory translated into Destruction of infrastructure deforestation, over pasturing, disorderly urbanization Damages to the agricultural and lives tack production and invasions to the riverbed to expand the agricultural border as well as the indiscriminate extraction of added materials. Floods appear most frequently along the Vilcanota riverbank, mainly in the areas of Calca and Urubamba. ntensified lnadequate anthropoid practices such as pasture- Biodiversity loss (flora and fauna) oils erosion burning for practices livestock raising purposes(which Unbalanced ecosystem brocess generally end in fires), deforestation for energetic Reduction of the capacity of the soil to retain water purposes, over-pasturing due to excessive number of Damages to human health because of the generation of smoke. animals. The use of land slopes without previous increased agricultural run-off speed conditioning, accelerated urbanization process, and the Reduced number of natural water suppliers use of forestry areas for agricultural purposes, among Unbalanced water cycle others, have turned out into deterioration of the soil High concentration of sediments in the river resource. Reduced level of agricultural and livestock production Deterioration and weakening of the vegetal cover Loss pf native forests Gradual loss of shrub, sub-shrub and herbs species Danger of extinction of wild fauna due to habitat changes Landscape changes Interruption of roads and vehicle transit River flow alterations Deterioration of quarries made of concrete Verv large loss of soils wild flora and Anthropic pressure upon wild flora and fauna species Constant biodiversity reduction Yaunaspecies through furtive hunting and fishing or to accommodate Unbalances in the ecosystem :xtinction farming spaces is a permanent risk for some species such as the SHM eye glassed bear and wild flora species in all the buffer zone of the SHM. introduction The introduction of exotic species is competing with l Biodiversity reduction 3f exotic the native species at plant and animal level. species Since more than 500 years ago sheep and cows have put aside the breeding of south American camelides. The native potatoes have been almost replaced by hybrids and improved species, thus endangering the whole diversity of Andean tubers. Native trees have been left aside by the eucalyptus tree, which is a good resource for construction and energetic use has affected the water sources. Water Most critical waste waters flows are located near the n The change in water quality (presence of coliform and fecal pollution cities of Cusco, Sicuani, Urcos, Calca and Urubamba. bacillus in proportions higher than the permitted limits) 8 Alteration and reduction of aquatic flora and fauna for human consumption. l Reduced capacity m Reduction of the water self-depuration capacity. Solid wastes disposal, as in the previous case the most l Waters with solid wastes such as pieces of glass, paper, plastics, critical points for wastes generation are located in the wood, cloth, and metals among others. cities of Cusco, Sicuani, Urcos, Calca, Urubamba, lane 8 Damage to canoes activity all along the Vilcanota river Emission of industrial wastes Livestock raising activity (disposal of animal excreta). 63 Table B: Economic-Productive Threats Type of threat Threat Description Effects Crosswise Financial resources deficit for productive infrastructure I Lack of articulation between the rural and urban spaces Economic- road systems investment I High transport costs productive deficit I Isolated production areas Incipient Poor access to financial resources and to technology; I Reduced labor market industrial Shortage of highly skilled human resources; I Low economic income development Unfair competence of imported products; I Low contribution to the regional GDP, as of 1996 the of the region Improvization in the implementation of regional contribution was almost 11%. development policies: and I Increased informality in the industrial activity and street trading. High tax burden Local 8 Low rural incomes. For the provinces included 8 Reduced employment opportunities governments in this study, the UNDP 2002 report shows and 8 Poor economic growth lack capacity estimated monthly income per capita that is 8 Inadequate contribution capacity of the production system. to promote between 208 to 230 soles , while in the 8 Marginated territories local Development Plan for the Province of Calca the 8 Unbalanced development economic monthly rural income per capita is between 66 development and 100 soles. l Centralized state has only the recently initiated a decentralization process n Limited financial resources make it difficult to improve the municipalities' technical capacity. 8 Institutional, financial and productive concentration in the urban areas. Lack of l Very high agricultural and livestock EAP : 45 % D Low profitability relation l Very low agricultural and livestock GDP: 25% I Extremely poor farmers between the 0 Low productivity and competitiveness of the 8 Imported agro industrial products from the northern countries EAP working agricultural and livestock sector with dumping prices.. in the 8 l Lack articulation with other production sectors. Subsistence agricultural activity agricultural * Poorly developed internal markets n Replacement of agricultural activity for art crafts and tourism and livestock services under marginalized conditions and discriminatory l Unfair competence in the international market sector and the (Subsidies and protection in the northern treatment. generated markets). I Legal uncertainty for investments and protection of community GDP a Incipient development of information systems lands. with regard to market trends and demands. m Lack of information with regard opportunities in the local and regional marketstlimited training opportunities, unsatisfactory level of attention from government sectors) * Lack of physical and legal rehabilitation mainly in the rural sector but also in the urban sector. (Arbitrary promotion of a land market and rural property reform) m LOW Reduced loan opportunities because of high m Lack of investment capitals profitability interest rates n Land shortage and migration of farmers to the urban marginal for m High rate of small farming in lands with areas agricultural agricultural vocation (93% of the farmers have n Low income level for the population and continued loss of capital and livestock land plots with less than 5 has.) activities I Low prices for agricultural and livestock moducts Poor m Deteriorated irrigation channels management m Poor financial and technical capacity of users Inefficient use of irrigation water of water for the maintenance and conservation of the m Prevalence of traditional technology resources irrigation structure Crops plagues 8 Lack of prevention policies m Damages to agricultural production and diseases N Excessive use of agrochemical products w Damages to the population's health m Market persistence (mainly in rural areas) of m Less biodiversity. agrochemicals that are prohibited or restricted for use in the northern countries 1 64 Table C: Social Threats Type of - Area Threat Description Effects threat Disorderly l Population migration from the rural areas into the city of Poor management of the natural and .u-ban Cusco and the Vilcanota Valley cities. During the in- productive resources growth in between census period, the urban population of the two House building in high risk spaces, not :he most important cities in the Valley, that are Calca and taking into account the urban ordering plan. Population Vilcanota Urubamba, has shown growth rates that are over the 3% Concentration of economic, services, Valley annual average, while the rural population growth average commercial and productive activities. is under a 2% rhythm. Rapid modernization that gives way to eradication. Poor and l It is estimated that 39,9% of the population do not have Untreated water consumption. restricted access to drinking water supply systems. They obtain the High mortality rates in particular among service water supply from the small rivers, springs and other chi&en Water improvised sources. 1 High under nutrition rates. 0 In the farmers communities there is only untreated water 1 Prevalence of infectious contagious flowing through the tubes of a public network. diseases. l Tube water, chlorination is not continued. 1 Main diseases are: dysentery, gastroenteritis, skin and respiratory diseases. Poor service . In the study area 69.7% of the population is affected by 1 Inadequate living conditions in the the deficit of sewage services. 1 River basin contamination with fecal wastes capital and m Lack of information about the service benefits and the 1 Generation of health problems lack of system operation. 1 Proliferation of infectious contagious service in 8 Few resources for the expansion of the services to the rural diseases the areas zommuni tie m Lack of technologies suitable for the rural areas. s Sewage Pollution m Poor public cleaning services. I Proliferation of infectious contagious caused by m Lack of treatment plants for waste waters and solid wastes diseases the garbage in the provinces of the regions. On the other hand, the direct dumping of accumulatio 8 The only treatment plant for waste waters in the Vilcanota waste waters into the Vilcanota river and its Access to n in the Valley, located in the district of San Jeronimo in the tributaries is affecting directly the hydro Basic dumps. province of Cusco, is not in operation. biological resources. The inhabitants in the Services Solid l Limited participation of the population in solid and liquid Vilcanota riverside state that 15 or twenty wastes and wastes management. years ago they could fish in the river but Social Waste that is not possible now first, because the Waters river is polluted and secondly, because fishes are not available there anv more. , Lack of 8 Continued energy cut offs 8 Equipments, machines and the services in service m Lack of public lighting system general are out of order. quality m Inadequate infrastructure I Lack of public safety Electricity 8 Still almost 32% of the population living in the rural I Potential public protest communities in the highlands does not have access to this service. Poor and m Teachers with few opportunities for training and updating I Low educational level limited l Poor coverage of educational services B Emigration of youth looking for educational 8 Lack of equipment opportunities. service m Poor infrastructure n Limited possibilities for capability Education n Serious school drop out rates n Illiteracy average is 24% Poor service Lack of infrastructure . Increased death and disease risks in health Insufficient equipment and staff, mainly in rural areas. l Children mortality is still at a high rate level centers (31 per thousand). Health m High mothers mortality at a rate of 198 per hundred thousand). Low quality 8 Old public transportation units. B Pollution and unsafe m Poor and insufficient road and communication systems m Difficult access for tourists and visitors transport m Questioning s against the Cusco - Machu Picchu train l Increased costs for passengers and freight Transport service service because of the high costs and the low quality transport service mainly with regard to national passengers. n More travel hours m Difficulties for the marketing of production Lack of m The private sector is not interested in investing in rural m Difficulties for the development of micro fixed telephone systems enterprises Telephone telephone D High costs for satellite telephone services a Isolation, the population remains without services communication 65 Table D: Political Threats I Type of threat Threat Description Effects Corruption m Crisis of moral and ethical values in public administration. m Distortion of the intervention n Incipient development of participatory mechanisms for the priori ties of the institutions organized population with regard to the monitoring of m Low legitimate condition of public management the institutions m Opacity of economic flows m Population does not trust their authorities Assistantship and clientship n It is seen frequently that the central and local governments m Deterioration of the social authorities manipulate the social programs in an effort to framework and weakening of keep and/or improve their popularity. the ancestral collective m Some sectorial entities distribute food and tools, mainly participation systems. POLICIES among the farmers in order to have their participation in the objectives that the entities are trying to achieve. Social and political conflicts in the m The structural problems such as the few employment 8 Negative effect on tourists region (strikes, protests.. .) sources flow and investments w The reduced allocation of funds for local governments n Negative image of the region m The limited progress in the decentralization process, in particular with regard to economy. a All the above show that people is not happy with their authorities and the policies adopted by the government. Reappearance of terrorism m Economic crisis l Negative effect on tourists m Structural problems flow and investments I l Negative image of the country Community Consultation Process During Preparation A community consultation process supported during project preparation aimed to initiate a process of public dialogue on regional development priorities that will continue under the project. Previous development interventions in the region that failed to adequately consult and involve local stakeholdershave had limited success. The project aimed to involve stakeholders at an early stage through intensive consultation to increase ownership and reinforce the sustainability of future investments. The consultation process was facilitated by ARARIWA and involved consultation with civil society organizations, local authorities, private sector representatives and other important stakeholdersin the Vilcanota Valley through a series of workshops. These took place in Pisaq, Calca, Urubamba, Ollantaytambo, Piscaycuccho, Qorihuyrachina, Machu Picchu Pueblo and Aobamba involving over 300 local residents. The dialogue process aimed to build bridges between civil society stakeholders, the private sector and local authorities while ensuring a productive dialogue between relevant stakeholders in different communities and towns. The processincluded 10 focus groups, 4 workshops, and more than 20 in-depth interviews. A seriesof issueswere highlighted during the consultation process. These include: (i) Machu Picchu Pueblo is an arena of conflict and contention between numerous local, external and public sector stakeholders. Improved opportunities and conditions for partnershipsandalliances exist in other communities in the Valley. (ii) Support for agricultural development is critical to poverty reduction and local economic development. Local and regional governments need to increase emphasis on rural development in parallel to improved tourism managementcapacity. (iii) Local stakeholdersdemonstrateparticularly strong environmental awarenessand knowledge of conservationpractices. 66 (iv) Tourism sector development in the region is increasingly encompassingthe entire Vilcanota Valley. Rural communities may require specific training on skills development to work in the tourism sector. (v) The region has a strong NGO and civil society sector. However, important NGOs are often basedin Cusco. Table E: Non-Governmental Organizations in the Vilcbota Valley ORGANIZATIONS INTERVENTION MAIN WORK AREAS AREAS Centro para el Desarrollo Pisaq o Agriculture & livestock development de 10sPueblos - CEDEP CI Natural resources conservation Ayllu o Strengthening of community and river basin organizations. Asociacidn ANDES Pisaq CI Biodiversity conservation KJ Potato park in Pisaq Asociacidn ARARWA Calca y Urubamba o Agriculture & livestock development o Natural resources conservation ~3 Strengthening of local governments 0 Concertacion spaces Centro Bartolome de las Calca o Strengthening of local governments Casas - CBC D Promotion and strengthening of concertacion spaces III Tutoring and Training of research leaders CI Post graduate education Vision Mundial Calca o Agriculture & livestock development ~3 Natural resources conservation o Strengthening of community and river basin organizations. CI Strengthening of weaving women organizations (res) o Food security Asociacion ADESA Ollantaytambo CI Agriculture & livestock development 0 Social infrastructure 0 Community training CADEP Mollepata c1 Support to agricultural activities CI Irrigation infrastructure works PLAN MERISS Mollepata KI Project for rehabilitation of the irrigation channels HOPE Ollantaytambo CI Support to children in rural areas o Support to schools in rural areas Instituto Machupicchu Machupicchu o Conservation of the HSMP natural and cultural resources Swiss Contact Ollantaytambo o Rural tourism o Agro business Corredor Cusco - Valle de Vilcanota D Training Apurimac o Access to market Consultations identified a series of key development priorities including support for cultural heritage preservation, rural agro-based development, improved municipal governance and strengthenedenvironmental management. The project will facilitate a continuous process of dialogue that will build upon two existing local mechanisms: (i) thematic and geographic public 67 dialogues called `mesas de concertacion'; and (ii) municipal participatory budgeting mandated under Peruvian law. The primary product from the consultation processis a draft Vision for the Sustainable Preservation and Development of the Vilcanota Valley through 2012. The consolidated Vision will be sharedwith participants and other stakeholdersin the region. The project has integrated key activities and recommendations into specific components based on the observations and feedbackfrom the consultative process. These include: 0i continue ongoing consultation processamong all key stakeholderstowards a shared vision of the HSMP and the SacredValley through 2012; (ii) facilitate accessto rural infrastructure and services through linkages with ongoing and pipeline bank-financed projects in Peru including PRONASAR; (iii) undertake community action planning at the local level to validate and monitor project actions, and establish basis for community driven development (CDD) components; (iv> develop a Strategic Environmental Assessment for the Vilcanota Valley micro- region; and (V > develop a strategy for the environmentally and financially sustainable preservation and exploitation of the Valley's assets,including the regulation regarding the number of visitors to the HSMP and SacredValley. 68 Annex 16: Business Partnerships PERU: Vilcanota Valley Rehabilitation and Management Project Partnership arrangementswith key agencies particularly knowledgeable of the area and subject matter were envisaged from the outset: UNESCO and its World Heritage Center (WHC); the National Geographic Society; and the World Monument Fund. The partnership leverages knowledge resourcesof theseagencies,and involve them in the production of services and goods for the project. More recently joining the appraisal mission were two new partners: a Canadian consortium funded with a leading-edge eco-industrial networking approach; and the Urban and Regional Information Association (URISA) International, which examined the feasibility of deploying Spanish-speaking Geo volunteers for local capacity building in the use and management of the addressing system and supporting GIS technology. Finally ITDG Peru, joined the team to bring its know-how on community telecentersas local businessincubators. The partnership arrangementsdiscussed below are knowledge-based and informal. They will include contracts to provide specific services that leverage the partners' knowledge and /or matching funds. Thus, NGS, Eco-Industrial Consortium and URISA representative Visual Systems participated in pre-appraisal and appraisal missions at their own expense. ITDG Peru has been participating on a consulting basis. These knowledge partners would benefit from specific contract arrangements,either as limited international bidding or sole source. Details for LIB or sole sourcecontracts areprovided in Annex 8 on Procurement. At a meeting at H.Q. in March 2004, Francesco Bandarin and his team met with task team members to discuss issues concerning the HSMP and other World Heritage Sites in the Sacred Valley and brief the WMC on the proposed project. Key UNESCOTVVHCrecommendations to the Government have been incorporated into the draft legal documents as project covenants. An agreement has been proposed to be subscribed upon the receipt by the WHCIUNESCO of the PAD. UNESCO staff would join subsequentBank-led negotiation and supervision missions. The task team briefed Patricia Uribe, the UNESCO Resident Representativein March 2004, and sheand Mr. Bandarin and his team met subsequently in Paris . The National Geographic Society and their resident scientists and grantees have a wealth of knowledge on Machu Picchu dating back to the Hiram Bingham expedition in 1911. The NGS would be involved in the production of thematic maps, brochures and videos for the Machu Picchu Sanctuary, the Inca Trail and the Sacred Valley for the visitor/ interpretation centers as well as for the local schools. The NGS Director of SustainableTourism joined the PCN meeting, participated in the pre-appraisalmission and contributed significantly to this report. The World Monuments Fund also joined the pre-appraisal mission and plans to raise matching funds to assist in training I capacity building in historic assetpreservation and management for INC and INRENA staff. The project will benefit from collaboration with the Eco-Industrial Group (EIG), a consortium of Canadian environmental management firms with leading expertise in the application of eco- industrial networking solutions. The EIG will support in the implementation of a regional strategic environmental assessment(SEA), and identify opportunities for the application of eco- industrial networking solutions in the Valley. The group will support through technical 69 assistancein the development of a regional development solid waste management system under the project and in the implementation of EIAs and detailed engineering studies for sanitation, wastewater management and water supply systems to be financed under PRONASAR and other pipeline Bank infrastructure projects. URISA International representative Visual Systems will contribute leading expertise in GIS- basedtechnologies for urban and regional information management as well as the development of a GIS-based addressing system for the Valley, formulation of regional and urban territorial plans, and municipal capacity building. The project would benefit from a new program launched by URISA International to provide Spanish-speakingGeo volunteers for local capacity building in the useand managementof the addressingsystem and supporting GIS technology. ITDG Peru will contribute local know-how developed in Cajamarca in the establishment and operation of community-based telecenters. ITDG Peru will provide ongoing advisory and supervision support for the community telecenters to be developed under the project. The project will develop a network of community telecenters in Pisaq, Calca, Urubamba, Ollantaytambo, Machu Picchu Pueblo and Aobamba. Based on ITDG Peru's Cajamarca experience, the telecenters will serve as community business incubators by providing accessto computers, high-speed internet access, audio-visual equipment, electronic libraries and other small businessfacilities. 70 Annex 17: Resettlement Action Plan, HSMP Process Framework and EIA Framework PERU: Vilcanota Valley Rehabilitation and Management Project Plan de Reasentamiento de 60 Familias Urbanas de Machu Picchu Pueblo - Cusco 1. Introduccih El presentePlan de Reasentamiento,es realizado dentro de1Proyecto Plan Vilcanota y consiste en el reasentamientode 60 familias con una poblacicinde 279 personas,que habitan en la laderas de 10s cerros de1 poblado de Machu Picchu Pueblo, este ultimo es el centro urbano mas importante de1 Santuario Historic0 de Machu Picchu2; estas familias que por motivos de necesidadde vivienda, se ubicaron en las laderasde estoscerros pesea estaren constantepeligro de sufrir las consecuenciasde 10sdesastresnaturalesque pudieran ocurrir. 2. Antecedentes El Distrito de Machu Picchu, pertenecientea la Provincia de Urubamba, departamentode1Cusco al sur de1Peru; se encuentralocalizado dentro de la zona de1SHMPP.3, La zona urbana de este distrito estaconformada por el centro poblado de Machu Picchu Pueblo, ubicado en el Km. 110.6 . de la via ferrea que conduce a las ruinas de Machu Picchu. Ocupa una extensicjn aproximada de 16 has, localizada en las desembocadurasde las quebradas o valles de Aguas Calientes y Alqamayo, colindando hacia el Este con el rio Vilcanota y por el Oeste con las paredesrocosas de las montafias. El pueblo esta constituido por unas 800 familias dedicadas principalmente a las actividades relacionadas al turismo coma comercializacion de artesanias para 10s turistas, el hospedaje y proveer de alimentacion en 10srestaurantesy hospedajes. Los pobladores son mayoritariamente inmigrantes que llegaron atraidos por 10s servicios turisticos ofertados, la poblacion establecidaes de 3,600 habitantes y la poblacion flotante es de 1,200turistas por dia. 3. Descripcidn de1Proyecto l El Plan Vilcanota contiene el "Plan Territorial Multiprovincial" que servir;ii de marco normativo a 10splanes de Ordenamiento Fisico Espacial de 10sCentros Urbanos de 10spoblados ubicados en la cuenca de1 rio Vilcanota, cuyo knbito territorial est;i determinado desde el poblado de1 Salvador hasta el nuevo asentamiento ubicado en el Km. 122 de la via ferrea Cusco- Quillabamba. l El componente que provoca el reasentamientode las 60 familias esta determinado en el Plan de Ordenamiento Urbano de1Centro Poblado de Machu Picchw, en donde se determina que 2 SHMPP, El Santuario Historic0 de Machu Picchu es un Area Natural Protegida por el Estado, ANPE, integrante de1 Sistema National de Areas Naturales Protegidas SINANPE, bajo el amparo de la Ley 26834, Ley de Areas Naturales Protegidas, y de1Decreto Legislativo 001-8 l-AA que lo crea en la categoria de Santuario Historico. Su importancia historica y arqueologica han adquirido importancia universal. Machu Picchu es patrimonio Cultural y Natural de la humanidad declarado por la UNESCO. 4Aprobado mediante Acuerdo Municipal Nro 06CM-HMDM-2000 de1Municipio de Machupicchu, el30 de Noviembre de1afio 2000 71 el area que ocupan las actuales viviendas son vulnerables a desastres naturales coma deslizamientos y avalanchas,producidos por las constanteslluvias y la desestabilizacion de 10s suelos de las laderas producidos por la tala y excavaciones para la construction de las viviendas, esto se agrava con la sobrecarga que se produce por las estructuras de las viviendas de concrete de hastados niveles. * El areaen donde seubican las viviendas en riesgo, estanlocalizadas en diferentes lugares de1 poblado y en un areade 5 ha. aproximadamente. 0 Las accionestomadas paratratar de disminuir el reasentamientono sepuedendar, puesto que la prioridad esta en que todas las familias abandonen10slugares en donde estan actualmente, lo que si se ha considerado es en acortar las distancias de la reubicacion de las familias, prioritariamente en nuevosprogramasde vivienda multifamiliar dentro de1poblado. 4. Objetivos de1Proyecto Los objetivos principales de1proyecto son: i. Empadronar y registrar a 10sparticipantesde1reasentamiento.(60 Familias); ii. Elaborar 10s expedientes tecnicos y construir las instalaciones que recibiran a 10s ... reasentados(viviendas y edificios); 111. Realizar el traslado de las familias censadas; iv. Pagarlas indemnizaciones a las familias; y v. Monitorear el proyecto hastala finalization de1Plan Vilcanota. 5. Estudios Socio-Econhnicos Serealize el Censode 60 familias, obteniendose10ssiguientes resultados: * El Censo fue preparadopara encontrar y registrar las viviendas y 10spobladores,todos ellos agrupadosen el siguiente cuadro: Cuadro No 01 _,,,,~~~....,.../__......................../~...._/......~~._.,,..,..I............/...,,.,.......,..,.....I....................................I....,.,...... .......~_,,,,,,I,, .../........,........._...._.....,............................_.... a Las 60 familias lo constituyen una poblacion de 279 habitantes,'esencialmente por una poblacion adulta con el 61% y nifios con el 38%, contrastandocon solo el 1% de ancianos, dentro de estasfamilias se ha detectado05 farnilias vulnerables por ser hogares a cargo solo de la madre y son 01 hogar de una viuda y 04 por madres solteras. * El promedio de miembros por familia es de 4.65, que refleja la tendencia de que cada familia tiene hasta3 hijos por cadauna. * El promedio de edad de1titular de cada familia es de 36 adios,por eso se puede considerar matrimonios jovenes con hijos menoresde 6 a.i?osen su mayoria. 72 l El 90% de las familias trabajan 10sdos conyuges, siendola mayor actividad el turismo con el 62% y con la mayoria en el comercio de artesanias,la segundaactividad est;i constituida por la construction civil con el 18%, el 10% para las actividades de servicios municipales y el resto en otras actividades. * 94% de 10spredios son viviendas y solo 4 son vivienda-taller de estos tres son artesanosde tallado de piedra y un cuarto es operario de construction civil que elabora bloques de cemento-arenapara la construction; es decir el negocio en las viviendas en estos lugares es casi nulo por la precariedad de las mismas y por la topograffa accidentadadonde se ubican estospredios. * Las construcciones de material noble se han realizado sin supervision tecnica profesional, pero debido a la consistencia de1 suelo (rota) contribuye a una buena estabilidad de la construction. Los disefios de las viviendas en cuanto al aspect0espacial, son casi en un 90% de un solo espacio, en donde se desarrollan actividades de estar, dormir para todos 10s miembros de las familias, existen solo dos viviendas de dos plantas. * Se elaboro un registro de todas las familias, incluyendo una a dos fotografias de1inmueble, y en algunos cases con la presencia de1poblador, este registro ademas de contener 10sdatos socio-economicos,estan las valuacionesde las viviendas. Seha determinado que el reasentamientoocasiona10ssiguientesimpactos: La perdida de la tierra que ellos "pampearon", para instalar sus viviendas, cortando el cerro y pircando la rota que encontraban,asi como la tala de1bosquecolindante. * La perdida de la vivienda de 56 familias, las otras cuatro familias son artesanosque incluyen en su viviendas sus negociosque son talleres. * Los negocios casi no existen, y existe el barrio el Mirador una sola tienda de abarrotes,que casi siempre estacerrada. * Los mecanismos de actualization de 10smedios de subsistencia de las familias reasentadas, no son necesariospara el mayor volumen de desplazados,puesto que seranreubicados dentro de1mismo pueblo por lo que no perderfin sus centro de trabajo y servicios publicos; por otro lado las 12 farnilias que se trasladaranal nuevo poblado ubicado en el poniente de1SHMP, nombrado como la "Villa Ecologica de Machu Picchu5 ademas de contar con 10snuevos servicios complementarios de1nuevo poblado, la nueva via y el transporte subsidiado por el Municipio de MPP. permitirti una constanterelaci6n entreestosdos poblados. e EGEMSA cuenta con un proyecto, y con el presupuesto, para reasentar 15 familias damnificadas que actualmente estfin instaladas dentro EGEMSA, y por lo tanto dentro de1 5Se les ha denominado tentativamente al nuevo asentamiento de1Km. 122 coma Villa Ecoldgica de Machu Picchu y al asentamiento cerca de Piscaycucho con nombre de Villa Artesanal de Piscaycucho. 73 SHMP, en el punto hastadonde llega el ferrocarril. Las 15 familias estan creandoen el seno de EGEMSA una zona de transbordede mercancia. La propuestade EGEMSA es extender el ferrocarril en cuatro kilcimetros por la margen derechade1Vilcanota hasta el Km. 122, en donde hay un terreno privado de unas 10 manzanas,apto para un pequefio poblado. Asi, la trocha o camino desdeSta. Teresa seria ocupadapor la via ferrea hasta el KM. 122, llevando el punto de transferencia de trafico comercial y de pasajeros,a 12 KM. * Los reasentadosde Machu Picchu Pueblo contribuiri'an al nuevo asentamiento, denominado `villa ecologica' a diferencia de la villa artesanal que se propone eventualmente para Piscaycuccho. Adem& de 10s recursos para contribuir al sistema de infraestructura, se propone dentro de1proyecto la creaci6n de un telecentro comunitario en este punto bajo el proyecto. l El trafico entre el nuevo poblado y el Cusco u Ollantaytambo seria por 10strenes de Peru Rail. El trafico local entre el nuevo poblado y Machu Picchu Pueblo 12KM, con paradasen EGEMSA y Puente de Ruinas, podria ser por parte de un automotor ferroviario tipo tranvia, operadocooperativamente por 10sgremios de transportistasy el municipio. Asi, de la misma maneraen que el proyecto propone apoyar y apoyarseen PRONASAR, el proyecto se apoya en y apoya al proyecto de EGEMSA. Finalmente, esta solucicin cumple con el requisito por partede1Banco Mundial, de impedir la penetration de un camino vehicular al HSMP. 6. Otros Estudios Se realiz6 una exposici6n de 10sconflictos y aspiraciones de 10spueblos asentadosen el valle Vilcanota reunion llevada a cabo por el Jefe de1 proyecto Plan Vilcanota, en la localidad de Yauca, lleggndosea las siguientes conclusionescon respect0a MPP. : * La poblacion asentada en el MPP. es heterogenea y no participa en las decisiones de1 poblado, est6n mas abocadosa generarm6s ingresos en sus negocios y retirar el excedente econrjmico a otros lugares en vez de invertirlo en el pueblo. * Se ha detectado que una reubicacibn al poblado de Piscaycucho, no es bien vista por 10s pobladoresde estelugar, espor ello que surgela idea de la Villa Ecoldgica de Machu Picchu * Se tendra mayor inter& en las 5 familias vulnerables, en especial a las dos familias que se erradicarhnen el nuevo poblado, estas familias al igual que las que se junte en el poblado nuevo, deberan contar con 10s servicios basicos de infraestructura que para la fecha de trasladodeberanestar ya concluidas. 7. Marco Legal De las encuestasrealizadasy de la information proporcionada por el Municipio de MPP., ningun poblador ha acreditadola propiedad de1terreno en donde se ubica su vivienda, por lo que se les va considerarcoma "posesionarios" con una antiguedadde mas de tres anos. Esta figura juridica de Posesion, se establece coma " ...el ejercicio de hecho de uno o mas poderes inherentesa la propiedud" siendo un derecho temporal transitorio, puesto que existe el derechode propiedad, al que puede acceder,si se cumple con ciertos requisitos establecidos por 74 propietario. En cuanto a la Prescripcibn adquisitivaifropiedad, ley, y para nuestro case nace de1 derecho de la coma facultad inherente de1 no se da para este case por cuanto es necesarioque la posesion seamas de 10 adiosconsecutivos, lo cual ningun posesionario10stiene. En cuanto a la figura juridica de Reasentamiento,solo se establecenen normas conexascoma la Ley No 238552 de las Municipalidades, el decreto Supremo N"007-85-VC sobre Reglamento National de Acondici40namiento territorial, de Desarrollo Urban0 y Medio Ambiente, que en anibas normas establecen la responsabilidad de1 Gobierno Local en cuanto al ordenamiento Urban0 de sujurisdiction. Asimismo el codigo de1Medio Ambiente y de 10sRecursosNaturales (aprobadopor DL No 613) estableceel deberde1Estado para incentivar y difundir 10sprogramas nacionalesque orienten y ordenenel crecimiento demografico de la poblacion. 8. Marco Institutional Se ha determinado que las instituciones encargadasde ejecutar el Plan de ReasentamientoSean COPESC07 con el Arq. Luis Aparicio La Torre encargado de la Direction Ejecutiva y la Direccicin National Provias Rural de1MT@ a cargo de1Eco. Ra61Torres, Director Ejecutivo. COPESCO cuenta con amplia trayectoria en la planificacion, ejecucion de obras de Infraestructura Turistica en el Peru, es ademasla institution mas antigua que realiza laboresen el ambito de1Valle de Vilcanota habiendo concluido hate poco las obras de implementation de1 Plan de Ordenamiento de MPP. COPESCO estaria a cargo solo de la ejecucibn de las obras, el pago de las indemnizaciones y el traslado de las poblacion a reasentar, convocando a consultores externos 10s estudios y elaboration de 10sexpedientestecnicos y la supervision de la ejecucion de las obras. Asimismo, el MTC cuenta con la experiencia mas cercana de1tema de reasentamientos,puesto que es la institution estatal que realiza estos desplazamientosinvoluntarios, en 10sproyectos de construction de carreteras. Falta explicar cual es el rol de1MTC en el reasentamientode MPP 9. Criterios de Elegibilidad La election de las familias por reasentar,serealizo mediante la localization fisica de las mismas en sus lugares en donde se les tomcj la encuesta, registrandose 10s datos numericos como fotograficos en el Registro Anexo a estedocumento. Los criterios utilizados son: 0 Ubicacion de la vivienda dentro de la zona de riesgo determinada por el PO-MMP? Aprobado en el afio 2000. l Estar dentro de1Registro elaborado hasta la fecha de torte realizado el 15 de febrero de1 presenteafio. 6Segdn el articulo No 950 de1C6digo Civil 7COPESCO, Cooperaci6n Per&UNESCO Unidad Ejecutora y dependiente de1MINCETUR. ' MTC, Ministerio de Transporte y Comunicaciones, integrante de la Presidencia de1 Concejo de Ministros de1 Estado Peruano. ' PO-MMP, Plan de Ordenamiento de Machu Picchu Pueblo 75 * No alquilar el inmueble a terceros, de ser el case se le considera al inquilino como posesionario. 10. Avaltio e Indemnizacicin de las Ptkdidas Se realize un avaluo de las propiedades para determinar el valor de las pkdidas que cauce el reasentamiento, utilizando el metodo de tasacicin directa, con observaci6n de carnpo para levantar las caracteristicas de las viviendas, determinar 10scostos unitarios de construction por m2en basea 10sprecios determinadospor el CONATA'O y la deducci6n de1valor de las obras de habitation de 10slotes en dondese ubican las viviendas. Ademas se ha valorizado sin considerar la depreciation de1inmueble por tiempo y estadode conservation. El cuadro No 2 determina el valor de avaluo de las viviendas. loCONATA, Concejo National de Tasaciones de1Perti 76 Cuadro No2 . . I . Codigo Valor` de Valor de la Monto de Cod&o Valor de Valor de la Mont0 de de Obras en Construction Tasacion de Obras en Construction Tasacion Predio el Lote Predio . el Lote. .. . . s/. s;. . SI. , SI. ii/.- SI. I 01 600.00 2,812.ll 37,476.OO Y . ,31i 55b.00 2,808.00 37,476.OO . 02 800.00 41579.20 34,700.oo 32 600.00 11;208.00 . . 34,700.oo 03 300.00 , 1,855.20 37i476.00 33 I 400.00 8,323.85 37,476.OO 04 300.00 . . . 1. 1,391.40. . . 37,476.OO 34 400.00 2,241.96 37,476.OO . . . 05 600.00 11,988.OO %,476.00 35 600.00 1 6,724.ib. .. 37ii76.00 06 300.00 2i509.80 34,700.oo 36 500.00 4OJ76.00 37i476.00 . 07 600.00 . . 10,276.80 37,476.OO 37 600.00 20,088.OO 37,476.OO I ., .,....a 08 500.00 iO,276.80 . %,476.00 38 600.60 .'7;299.00 37,476.OO 09 500.00 6,208.90 34,~00.00 39 600.00 4,396.80 37,476.OO 10 600.00 20,094.58 37,4?6.00 40 450.00 141827.40 37,476.OO 11 500.00 . . . '. 6;i34.& 37,476.oo 41 450.00 . 20,932.80 . . . 37,476.OO . `12 iOd.00 ?;i65.40 3?;476.00 42 450.00 19,624.50 37,476.oo 13 500.00 2i130.62 37,476.OO 43 400.00 6,345.70 37,476.OO 14 500.00 7i781.40 . . . 37,476.OO 44 400.00. .1 4,363.80 .,. 37,476.OO 15 1,000.00 . 30,016.80 37,476.00 45 400.00 2,890.08 37,476100 16 1,ooo.oo 18,932.40 37i476.00 \ 46 400.00 2,493.6C 37,476.00 17 550.00 11,756.58 37,476.OO 47 45o.oc 1,611X 3j147k.OC ., 18 500.00 5,311.20 37,476.OO . 48 45o.oc ., i,633.88 37,476.OC 19 kooio 3,442.06 i7y476.00 49 4oo.oc 14,526.OC 37,cioc . . . 20Ii 600.00 . 5i646.76.1 37,476.OO *1. 50 ., 4oo.oc 3,014.4c . 1.. ., *. 37,476.OC . .., . 21 550.00 22,227.75 37,i?6106 51 4oo.oc / 3,310.8C 37,476.OC 22f3 550.00 17,161.88 37,476.OO 52 4OO.OC . 3,098.21 .37,476.OC . I 23 : 700.00 . ~ 4,736.OO 37i476.00 53 ? i;66b;oi 1,000*0C 20,752.ZC 37,476.OC 24. : 100.00 3,322.OO ' 37,476.OO 54 '26,264.7( 37,476.0( 25, ii . 6,700.68.\ . . . . . I 200.00 3?;476.00 55 ~ooo.oc 5,937.7: *i7;476.0( 26)r 500.00 71648.20 371476.00 5d ~400.0( 4,731.61 37,476.0( 27I : . ..1.:. 400.00 . 4,987.20 ..~... ...I.I. ; . I . .1 37,476.OO \ 57 .. , , 400.0( . 4,163.G I...I..1. 37,476.0( . . 28; : 450.00 2,987.20 37,476.OO 58 550.0( 4,640.ll 37,476.0( 29); . I .. 4OO.OO 9,015.oo 34,700.oo 55; 500.0( . 2,241.6( . 37,476.0( , 3c)i 450.00 14,424.OO 37,476.OO 6C 500.0( 2,241.6( ... .37,476.Ot. . .. . . TOTALS/. 00 TOTAL$USA 644,OOO.OO 11, Alternativas de Reasentamiento Se plantearon tres alternativas, dos consideran la reubicacion de las nuevas viviendas y una terceraque correspondea la indemnizacion economica. Las tres alternativasson: Alternativa A: Reubicacih de Viviendas en Otro Poblado Esta alternativa consiste en reubicar a las familias en otro lugar fuera de1 poblado MPP, especificamenteen el nuevo poblado que se plantea en el Plan Vilcanota y que esta ubicado en el Km. 122 de la linea f&rea Cusco-Quillabamba, ademas se ha coordinado con la Municipalidad 77 de MPP la asistencia a 10s Jefes de Farnilia para seguir trabajando en la actividad que actualmente se desempefian en MPP. Esta asistencia se contempla con la construccibn de una via que unira este poblado y MPP, con un servicio gratuito proporcionado por la MPP. Esta alternativa comprende'parael trasladode la Familia, la construction de un mt)dulo de 72.00 m2. con las condiciones minimas de habitabilidad y con servicios publicos de agua y desague acompanado de 10s servicios de salud y educaci6n para la poblacion infantil, este nuevo asentamiento contempla la reubicaci6n tambien de 15 familias que estan por la zona, por su carkter de nuevo poblado no seestaconsiderando10simpactos de trasladosde estasfamilias. Estas familias deberan tener como caracteristicasque cumplan con 10ssiguientes requisitos, (i) ser matrimonios constituidos y hastacon dos hijos de preferencia, (ii) acreditar el jefe de hogar y/o su conyuge, que su centro de trabajo esteubicado en el poblado de MPP. y que su horario de trabajo o estadia en el pueblo seadesdelas 9 am. hastalas 5 pm. (iii), disponibilidad al traslado y sujecion a no volver a asentarseen el pueblo de MPP. Alternativa 13:Reubicacih de Las Viviendas en el Mismo Pueblo de MPP Esta altemativa contiene dos variantes la primera (i) consiste en reubicar a las familias en lotes de poblados de familiares en el mismo.pueblo, constituyendo viviendas bifamiliares de hastatres niveles en viviendas de algun familiar de estosque esten construyendo su vivienda, dandole 10s "sires" de estasviviendas para que puedanconstruir sus viviendas. El actual poseedorde estas viviendas recibira a cambio la formalizacicin de su propiedad y la culrninacion de las obras que falte concluir. La segundavariante se estableceen (ii) reasentara las familias en proyecto de construction de edificios multifamiliares en terrenos de la ex empresa de ENAFERrr, terrenos que se viene realizando la expropiacidn de 10s mismos, este edificio tendria la capacidad suficiente para albergara las 38 familias que sereubicarian en estecomplejo habitacional que estima tener hasta 60 departamentosde 72,00 m2cadauno y con locales comerciales en 10sprimeros pisos. En esta variante de alternativa contempla la reduction de1 impact0 de 10s pobladores de 10s alrededorescon la adjudication-venta de 10sdepartamentossobrantesy 10slocales comerciales. Esta altemativa con sus variantes estfi dirigida a matrimonios jovenes que por razones de haber conformado una nuevafamilia seretiraron de sus hogaresal conformar su nuevafamilia. Las caracteristicasque deberkr tener estasfamilias son de (i) no ser m;is de cuatro 10smiembros de la familia, (ii) acreditar que el jefe de hogar tiene trabajo dentro de1poblado de MPP. (iii) tener la aceptacion de un vecino que este asentado en el pueblo y que necesite culminar su vivienda (solo parala alternativa (i)). Con esta altemativa se interviene en las edificaciones ubicadas dentro de1 pueblo, para poder proponer y ejecutar las propuestas que mejoren la imagen urbana de1 pueblo, con la l1 ENAFER, Empresa National de Ferrocarriles 78 consolidacicin de estas viviendas hasta 10s tres niveles y con 10smateriales y formas que se propone en la reglamentacion de1Plan de Ordenamiento. Alternativa C: Indemnizaciones Esta alternativa es la que se presentaria a las personas que aceptarian la indemnizacion en compensacicinde la perdida de la tierra y la vivienda. Estaria en principio tomando como referencia el avaluo de las viviendas y las obras de habilitacibn, y que sedetallan en el cuadro N"2, para el siguiente plan y para la compensation se estiman en $USA 10 000,OO;dependiendosu increment0 o disminucicin en el trato direct0 con cadapoblador que eligiera estaalternativa. 12. Eleccih de Alternativas Consultada la poblacion en una reuni6n que se llevo a cabo (indicar fecha de la reunion y nlimero de asistentes)en las instalaciones de1Instituto National de Cultura, en el que sedifundio el Plan, sedetermine las alternativas que se detallan en el cuadroNo3 ' Cuadro No3 ALTERNATIVAS ;i ;IA .112Familias .......I../.~~~~......~.I......11.........l...I....,............4B'.,..,..,.,......_................,_......._..-....,..../~.~.,.,..,,.11c.~_.....,.,,..,x..I,.....I.._....I..11.1.....:i iIB fFFaelias i16 13. Valorizacih de las Alternativas Paradeterminar individualmente el costo por cada familia segunsu election seha desarrollado el cuadroNo 4 que contiene: i. El avahio de la vivienda , ii. Costos de habilitaci6n de suslotes ..* 111. Costo direct0 de cada Alternativa: l Alternativa A, el costo de1m6dulo de vivienda de 72.00 m2. m6s su habilitacion, asciende a un costo de US$lO,SOO.OO. * Alternativa B, para sus dos variantes el costo de1module de vivienda-departamento de una areade 72.00 m2es de US$12,000.00. l Alternativa C, consiste en la indemnizacion de $USA 10 000,OO. iv. Costo de Demolition, esta tarea consiste en la demolicicin de las viviendas de 10s desplazados,paraluego realizar trabajos de reforestacibn y la construction de1camino. v. Costo de Desmonte, estevalor correspondea 10sescombros dejados por las demoliciones de las viviendas. 79 Vi. Costo Total, es la sumatoria de todos 10sconceptos descritos con anterioridad, y que refleja la inversih por cada lote, sin 10s costos administrativos de1 proyecto que se detallaran en el punto de Acciones y costosde1Plan. A continuacih sedesarrollael siguiente cuadro: Cuadro No 4 ( Se encuentraen la phgina siguiente) 80 pR&~d;"'&.g DE oB& ' i CODIGO V~ibA~~dhlb~PREDIOS M()fiO `: i Altemativa de . . .., ;,, ..n,A..1,i..in.v.... . . ' COST0 TOTAL Reubicacit 3n O&AS DE i CONS-J-&jUCCl()NES ;t ALTRERNATIVA . . ... i;iDEf,,&&O&$ : iL;MiiA&i DE i POR Lorr PREDIO ,..,,,.,. IABILITACION s/. DESMONTAJE ; ESCOMBROS ; ,$ .:: .. :.,: 01 ji Alternativa A 14i*gI/ . . 600.00 I.. . 2,812.d., . . . :. . 37,476.OO; . . . 105.75:,. 41,134.86' ~ : . , 02,.. ~Alternativa Ci. :; .. .. 1. 800.00 %I * 4,579.20) ..,. . 34,700.06- ,~ ../. , I 171.75: . .j 40,479.95 ,???*OO f. 03 7..2.. iiAlier-& fd$rnativa B ; 300.00 . .,.,.,...... 1,855.20! ..... ...~.~.,................5 41,640.OOf .,....,... I,I..a...,.: 69.75 i . 43,957!95 31ii15113.90 93.00: . ., . .,..I. .i . . . . h\ x : ; 04 ;;.. . .,,.. .. . .. ... ..,.... .300.00.. . .. .,.,.y/ 1,391.40: ,ir ..l,..a .i.*.\; 34,700.oo: .. .. .. / . , .. .I 70.00.: , .,...,..l. .;, .. 52.50! ..._>_i '7.: . .. .. .__A. 05 ,.. zAlternativa * B... 600.00I .. .,. 11,988.OOi . .,..,.,.. . .,.,.; 41,640,fO; . .. . . ~.,. . ,.E , . 599.00: 449.25!. .!. .,.... .. .. .,.,,.*/.,. 55,276.25 06 ..._. ~$lternativa . . .AI..... C 300.00 .> I....\.. 2,509.80' .\h.....,. /.. ...i. s4 7oo:ooH ..,...!:. 125.OOj ..,.... ,. . ;i 93.75; .. . .. 'i 37,728.55 I..I .. ...A.. 07 \,NFey-@iva.,,/. B ,.,. 600.00 .. . .,,./..,.. 10,276.803 . .. ... .,, ,... :. 41,640.oo; .,...,.., 514.00:: ' " "' :: .A.I. ..,,> 3gs.50: ./.: . 53,.,.!:416.30 .,~ 08 .,,.,.. iAlternativa . ....... ..L_i .. ..i, B 500.00 v ...v/ 10,276.80/ ,.,.,.,..,.. /./._ ,.,t. 41,640.OO; ..%.L../.i i i. !51f.001 385.5Oi . . . .. ...: .53,316.30.. . .A. .... .. 09.I '.%..''i !Alternativa >, .. . ..,. C..,. . 500.00 ,.I......I..... 6,208.90 i'> 34,700.001 .: . 310.00t ...1.. : 232.501. i , 41,951.40 10 {Alternativa ,:... .I .I.> B 600.00.,... .. 20,094.58/ .... . x. 1. i :. 41,640.OOj; n. . . . . :: 1,005.00s .. ... .. \..v .: . 753.75: . . .;. 64,093.33. 11 .v.... E.$!?!+tiva .,B 500.00 .,.,.,. .,,. 6,234.OOi ,..,,.,..~.., .,.,..~b; 41,640.ooi ,./. ,.,.,.. .,.,.I..; 312.00;.,i .,,... /.. 234.00:. _.,. . .:. .40,920.oo ..o;.i~;~o. 12 .. .:; ., .. !Alternativa . B 600.00 . . . . . . 7,565.40; . . . .. . . 41,640.OOi . . . 378.00.: . .I. ; 283.50: . . ,. . .. .. ... .I.~. :Alternativa ~.._ ....... .... B 500.00 .. , .\ ,, 2,130.62!, \ < 41,640.oo: <.1. \\ i . 107.00;. I . ., , ...i. .... 803 44,457.87 !.;../.,l,.,.,.,~h... Alternativa .\ B . I i.n.. . ..,... 500.00 7,78MOi . . 4.,..f.3f .. ,. 41,640.oo; I .,.I/i 5,.,.C,...., 389.00: .. _..,.,.,.,.v..i >291.75: : . . / - io,602:15 ,.,./.,,..\ .v,.*.,.,,. :iAlternativa :;.. .....,.......2.#A..A.. 1.A..B 1,ooo.oo ... .,..,.,./,...,.. .,.,. 30,016.80' A,./. ,...,,1.,.r. .A.,.: 41,640.OO~ . ,.... . .~. ....,;:. 1,501.00~ .,...... .. ... .. ..3. 1,125.75; .,.... ...... ...,.,.,..j i 75,283.55 i. 3.I... i...A.... .. j.;.. Alternativa . . B 1,000.00 .,.. .*.. . 18,932.40:.p . . . 41,640.00! . ., ,. 947.00; !10.25j 63,229.65 ..,.....,.~ .,...../~..\. 17 ! Alternativa ..l... . .. I.B 550.00 0..v........, 11,756.58i i.5j;;l:20i 41,640.008 . . . Ax kif.qpi, . ," ygii~ ., * . 54,975.58i s i p!!!ygF! B 500.00 I . . _... ,.A..i 5.i,.: 41,64O.OOi! h 7.,\ _.. .. ; 266.OOj ...A........../ix...:i 199.501 ,__... .. .; 47,916.70 . . . .... .. 19 i!iternativa Alternativa `6' ii\ 600.00 .. . ,..,\. . 3,442.OOi .. i i. . ..,...,.... ;. 41,640.oo.; .,.,,.. 1. ., ..,,: 172.00: .. i ,I,,. I...J 129.oq 4,A.i . 45,983.OO. . . . . . . 20 .::. . .... 1....~. 600.00./. _ Sr646:?6 1 41,640.OO..: .,...~... . . 282.0@ . . ,. ; 211.5Oi . . ...; 48,380.26. . . ,. 21 $lternativa ,,...v . . B 550.00 ...A...I. 22,227.75! ..I. . 41,640.00, ., . 1,111.008 .. * f. 833.25:. .:. 66,362.OO .I\ .\ ,..22.....% . iAlternativa .... ..........Y...A,,../ B . 550.00 . ,...... .,.,..,.,.. !!!.6!:!8i .. :. 4;,640.00; . .A.. .2.: 858.00" .,.,... .,.._....,....j 643.50: .,.,.... ....,.: 604?53*38 ,.... . i ..a. 23\% 5Alternativa . B .. ..,.. . . . 700.00 4,736.OOi.j. ., . 41,640.OO: g 237.004 . ... . . . -1 177.75: . . 47,490.75 i1,i~:56 24 iAlternativa n A 100.00.., .A 3,322.OOi .,.. ,...: 37,476.OOj B.00; 124.50; .i.. I.. : 25 .A..i4.. $ter"atiw B... 200.00 .... ,. 6,700.68/ ... 1 4.. I\. . .;. &;$,i)o*& .. ..> . : I..335.0($. :i .. A1 . i..251.25i0.i I .. ...1. 491126.9? 26 , .. !:;.Alternative. B .Y.>......i.../ ... ..A. 500.00 _..,// , 7,648.20! . . A.,,.....,n..i 41,640.OO'i /,.. I. .,i \ ..' , .382.00: 1. . . .,..,,..,..,./. 286.50; .. .A..... i vp . 50,456.70 ... ..\. 27 1.1., i fW?rnatim .,.,.,..,. _. B //. 400.00 ,.,... 4,987.20 ii .. , ,.l'v"'' 41,640.OO'i; .. , 24g.00~ ., ,,.,...: 186.75! . .:. 47,462.95 28 3Alternativa . i.. . I. B 450.00 1... .,.*. . 2,987.20 i 2 I .,... .i 41,640.OOj . .. 9./ . I 149.ooa .. i.__..A...:: 111.75! . . . ;. 45,337.95.. . 29 i Alternativa ,..,.,._. . ....... ... .... C I 'i50.00 400.00 9,015.00~ .,..,.,...*.~,,.,..,.., ;. \ .k ..A. . . .A,. 34,700.oo; 451.ooj .,....<...Y..s,.,: 338.25'.,/. 1.. .. /.: . ~. 44,904.25 . . . . ._.. 30 . . /./Vk?rnativa B ... .. .A.1. 14,424.OOi .. ... . 0..3..a......v...:. 41,640.ooi . ,_.. . . .. .,..,..f 721.00{ ,lLK).O(-j.i .I,.,.,.,....,..j . 540.75:. .,.,.i, . 57,775.75 IVI .,.. . 31 //.... jfWk%iVa . .....1. .. 1 A 550.00. . . .Y 2,808.00: ... L..v ..._.: 37,476.OO; _.,. . .,.. > . . ,.. . . . :; 105.00, . .. ,. :. .41,079.oo .. . . 32.I.. $Alternativa C 600.00 ,,I...I <.I..I..,.l,. 11,208.oo; I I.I.c.,e,..>II nF,..:. 34,700.oo; 560.00! .I>.s.,.. ..X.$, 42O.OOi .V.. ., ,. 47,488.OO>> , \ I 33 $y-~Y& i ~1;6~~;~& a..... 400.00 . .,..... .. .,. 8,323.851. .. .. .. . .: ~,.... ..,. .... . :: 41&O@ .... ..1,.,.g _1 312.00; ,.,.,.,... . ... : 51,091.85 i.. i. ...i,.,.,.,A. 34 gGiG&~~f~ i 400.00 . ,.I..\I I .. 2,241.96; 7%....I. \,.,.,.I..,,..+ 37,476.00i ,.h.. n _./._./ . :; 112.ooi .... .,... .. .,.$ . 84.00: \x../L...%..i ,I!%E!! ... ii $Alternatim 1: ~.. ., /../ ., `A 600.00 . ,, 6,724.80: . ./. , i 37,476.OQi; 336.()()j .,. .j 252.00; ., '. 45,388.80 . I ,. I . is 4~&&~0\ . j !Yternativa ..I. ,.,.,., B 500.00 .I.. .. . 40,176.OOi . . . . ...,. .,.f. . .. .I I 2,009.oo ii ..A... .. . $ 1,506.7'5; . .. .. . . . . .dj 85,831.75 . .. \.. 37 :AIternativa ,... ...,... .,...... ... ..1. B 600.00 *..,,, .,..,. 20,088.OO. ,,.,.,..,.,.,../.,.,..,,..,,.,,.;. 41,640.OO' A.,,.v..L.v. Y/Y. 1,004.001 .,.,..,..,..,~.// .. . .:: 753.00;/. i .....vi .;. 64,085.OO 56,i771:75`. 38 .. i.Alternativa B .. .,...~ 600.00 . . . . . 7,299.oo: .,.. . . .. i 41,640.OO;. . .. . .. ?S?:OO~ 273.75; . .+, ., . 39 .,..* i3.Alternativa _............_...... . B 600.00.\. 4,396.80: ,.,,\ .,.h:. 411640.00:.: . . ..i... . .. . .; 220.001 , 165.00: ,, . L i . . ..; 47,021.80 . I . . 40. . i Alternativa .,..,.,./ _. .... .... B 450.00 i50:b0 14,827.401 ,, .. _,..,..,..:. 41,640.ooi., /.,.,,. / 741.00: ..I.II I...; 555:?5; 58,214.15 .,.,.,..~..,..,...,I.I .,cc. 41. . ., . 20,932.80 :j .,.... . .:. 37,476.OO; 1,047.001.. .\ f 785.253 . ..l.. .,.....: 60,691.05 . 42*.. 450.00, . 19,624.50! I.. .,.1. .. .I.*;, ii;&iG; 981.001 . . ,.... .:j ??K??; 63,431.25 . .., . ... . d 43 i Alternativa ,.. ,...I\ 1..A.. 400.00. .J .. 6,345.703 6 . ,. .. 37,476.OOi 2,.r ,I. ,.317.ooi <. . ~ $7.75: .r r44,776.45 .I..I).1.. 44. 16yj$ I i $kmativa .I . . . .,........,.,... .,.,.A., 400.00 . .o....\..... , I .I ....v/ .. 7..+ 4,363.80! 33,476.00! ...i1.. :: 218.0(-j{ ........ i.....\ .. ..... .,.,.;. 4&62!:3!.. . 45., !;Alternativa .. .. .. . ,..1.1A 4oo.oa, 2,890.08! .,,., .,. .~ ,;. 37,476.OO: , . . . .~. 145.ooi .*. . ~.,~.*...:j 108.75; ~..,/..,.~ i, , 41,019.83 //.. . /.., 46 $!kFr@iva.,.. A 400.00 .~... I .. 2,493.60 i .I .. ; 37,476.OO:i 125.00;.. .. . :; 93.75 i. 40,588.35 81.00; i. 47 )UFfnativa ........ ... A 450.00 .,,I..A ., 1,611.lSi .., .,,,..>n,.; 37,476.OO.i ii.+..;i6~~ . +..,1,,\.1.j 60.75. _\_,.,,. >_; 39,678.90. .. ,.. . iii. . p%??t?tiM.,.... B.. . .. 450.00 . .. .. .... ?,633*88/.. ,.,,,.... . .,....t,.. .,., ,./. .~ 132.00' ,.,,..,.,.,..,.+..C<:; , .I..v$8,L.A.5.1i. 99.ooi 44,954.88 ., , ,. .,I.. .. 49. fpternativa.. ..... .. B 400.00 ...,1. . 14,526.OOi . . . , j. 41,640.oo;..: . . . !???!i 544.5oi . . .;. 57,836.50 . . 50 ,,. \M~nativa... \\ B,.. 400.00 .. .. 3,014.40: c., I.I,, , .:. `41,640.oo; c. I I 15l.OOij \. s..r . . .; , 113.251.i I.. 1.. I . 45,318.65 ,., 51 .,...,., iAlternativa iAli;r.-..ativa `E; B 400.00 .,.,..,... .. , ... .. . ... ..,... 3,310.80; 41,640.OOi . . .. .,............p 166.OOi . .A.,A.... .A.$. . .124.50:..i. .A..... .,.A.. 45,641.30 . . .. * ....,.. .. 52 ~ .. . . ... 1 , 400.00 &CJ96.21!1. .,. 41,640.OOi,.i ~,... ~~5.001 <. .Y;i 116.25': _ ,,_.._ .(, . 45407.46 ....! ., .. 53. .g. 1Alternativa . ,. . . B 1,ooo.oo . . .. 20,752.20.' . . . ... . i . 41,640.OO: . . .. .. . . . :; 1,038.OOj. ., . :i 778.5Oi . . .. I 65,208.70 . 54 ..L $!Y?ativa A...B .1,000.00 A... .. 26,264.70' .11.,I..I .., I..j 41,640.OOi;: .G. \ c. 1,313.oo; . \ _\_.,. . / 984.75:. . . . .:. 71,202.45 . * . . ._/ . 5; ,.,. .,s.,...,..,,.., .,....,,.,.A,.%.... ; Alternativa B .2,ooo.oo. ... .,....._ 5,937.75 i ,...,.. ..,.... ... ,......; ?pQ+OOi i . . ... ,. 297,005:; ,.ei...,..i c....I3 222.75; ,.,.,.,..............(/... .:,. 50,097.50 .,.,.... ,./ ,.,..... 56.., 1Alternativa..,.B. . . ,..,. 400.00 .i.-1,\L. 4,731.61, . ., I. , .,, 41,640.OO: . ~.., .. :. _.,. . ... ..5 237.00; Il77.75:\ . .. .;. 47J86.36 .,..,.. ,. 57 .. . :;. \5Alternativa. .. B . 400.00 . . .. . . 4,163.64i . I.~.. . . I i 41,640.00! ... .:: 208.OOi .. . ;; 156.001 .,I. ,..I. I.i 46,567&t . . 58 .j. i. . ~Alternativa B . ,. . 550.00../..i. 4,640.W . ...i 41,640.ooI. . . , ., .. ....,., , j 232.00: 174.001 .. . . . : 47,236.11. . . . I _.._I 59 2Alternativa ..;.,.,. .. n,.v.i ...A...iB 500.00 L ..A.... .. 2,241.60! ....A..,. ..._il.....i. . 41,640.oo' , I,I...L . ., _ 112.00: ,.......1.....,.,.II..::. F4.0015.I.;. * , 44~577.60 40;41316[;. 60 . j9.Alternativa A ,. . ,, .. . 500.00 . . /. 2,241.60; /j ,; 37,476.00, .. , I .I , . 1. ._. .,.. ;:. 112.()oji 84.00: .,. . . .;. . . . TOTAL...... s/. ; 3,024,191.56 . . . . : . ::. TOTAL $USA .:. ; 871,524.94 , . :.s: . . I . ... ....... ..... I.. ... 1 . I 1 81 14. Acciones y Costos de1Plan de Reasentamiento Poblacional Las acciones de1Plan de ReasentamientoPoblacional, es-tanrelacionadasa la formulaci6n de un conjunto de actividades necesarias,para efectivizar las alternativas de solution propuestas y propiciar el exit0 de la implementacicin de1 mismo. Dichab acciones han sido agrupadasen cuatro (4) programas: Programa de Empadronamiento, Regulaci6n de Tenencia y Tasacibn, Programa de Reasentamiento (Alternativa A, B y B'), Programa de Compensation Econ6mica y Programa de Monitoreo. Programa de Empadronamiento, Regulacih de Tenencia y Tasacih El presente programa serfi dirigido a 10s60 titulares y sus predios respectivos, teniendo coma objetivo actualizar y dar formalidad legal, a la informaciCin existente sobre 10s predios y poblacion afectados, de tal manera, que se pueda tener como resultado: el empadronamiento total de 10spredios y poblacion afectada,la regulaci6n de la tenencia de1predio y la tasacicjnde1 valor de cadapredio. La ejecucion de este programa, viene a ser la base,para la aplicaci6n de1resto de programas de1 Plan de Reasentamiento Poblacional. De acuerdo a ello, las acciones a seguir seran las siguientes: i. El empadronamiento de 10s predios afectados, conformado por las siguientes actividades: * Registro de 10s titulares y verification de la documentaci6n sustentatoria de posesion de1predio si hubiere. * Revisi6n a detalle de 10spredios afectados,mediante registros catastrales. e Elaboracitin de planos de identificacibn y ubicacion de 10spredios afectados l Elaboration de un Informe Tecnico Legal de cadapredio. ii. La regulation de tenencia de1predio, queconsta de las siguientes actividades: l Obtener la documentation que acredite el derecho de posesion y sus copias de su certification, segun10scriterios de Registro Predial y Codigo ProcesalCivil. l Levantamiento de informacicin tecnica: medicion perimetrica y planos de ubicacion Preparation de Expedientesde Posesion, con toda la documentation sustentatoria. , ... 111. La Tasaci6n de predios, la cual tiene como actividades: l Revisar el Padron, el Informe Tccnico Legal y 10sExpedientes de PosesGnde 10s titulares y predios afectados. * Valorizaci6n de 10s predios afectados, tomando como base el registro de Empadronamiento, la informacibn catastral, y las alternativas de solucicin, con la asistenciade1organism0 tasador. . iv. La Elaboration de1 Proyecto, Construction, Supervision de1 Camino Alto, que se ejecutarkpor encargoa las instituciones designadaso empresasprivadas. e Elaboration de1 proyecto en terrenos de 10s predios afectados, a nivel de Expediente Tecnico para obra. ' * 82 * Supervision y/o coordinaciones con las obras que van de 10s proyectos que se ejecutenpor encargo. El tiempo de ejecucion de1programa se estima en 120 dias, que sera financiado con recursos otorgadosde1proyecto. En el cuadro adjunto, se presenta el presupuesto de1 costo total de ejecucion de1 Programa, Cuadro No5 situado en S/ 145,420.OO. Progruma de Reasentumiento Poblucional El objetivo de1presenteprograma, es lograr la reposition de predios afectados por el proyecto, mediante el reasentamiento poblacional, para lo cual, se plantea tres alternativas: Reasentamientoen el Km. 122 (alternativa A), Reasentamiento en el poblado de Machu Picchu mediante la implementation de un Conjunto Habitacional (Altemativa B) y Reasentamiento en el 83 poblado de Machu Picchu mediante la implementation de mcidulos de vivienda Bifamiliar (Alterriativa B'). Las accionespara viabilizar la adecuadaaplicaci6n de1Programa, son: Obtener el padron de titulares y sus predios seleccionados para el reasentamiento poblacional, registrados en el Programa de Empadronamiento, Regulation de Tenencia y Tasacion. Suscripci6n de1Acta de Acuerdo para el reasentamientopoblacional y de aceptacionde1 titular, mediante el trato directo, segunlas zonaselegidaspara el reasentamiento Elaborar 10s expedientes tecnicos para la construction de las viviendas y locales comunales asi coma la respectivahabilitacibn urbana Adquisicibn de terrenos para vivienda en 10s sitios correspondientes,de acuerdo a las alternativas sefialadas,en coordination con la Municipalidad, COPRI y Ex ENAFER Seran necesariosproyectos arquitectonicos y urbanisticos, asi como un proyecto para la construction de un sistema de drenaje que funcione al mismo tiempo como muro de contention y limite fkico de1poblado Construccirin de las viviendas e instalacion de 10sservicios de saneamiento,sobreel area de 10sterrenosadjudicados (Km. 122) Construccidn de viviendas tipo departamento(edificios multifamiliares) Comunicacicin formal a 10stitulares mediante cartas notariales para el otorgamiento de las viviendas y departamentos Comunicar a 10stitulares de 10spredios, 10slugares, fechas y orden pertinente para la designation y entregade las viviendas. Traslado de 10stitulares y suspertenenciasa sus respectivasviviendas. Desmontar, demoler y eliminar 10s predios afectados pertenecientes a 10s titulares reasentados,por parte de1 proyecto y construction de sistema de drenaje/limite de1 pueblo. Coordinar con INRENA Cusco, la reforestacibn de1 5rea en donde estuvieron las viviendas El tiempo estimado efectivo para la ejecucion de1programa es de 240 dfas. La valoracicin de1 programa por alternativas, se muestra en 10scuadros adjuntos, en donde se observa que el costo total es SI. 3,621,191.20 Los presupuestospor alternativas se grafican en 10ssiguientes cuadros: 84 Cuadro No6 ~~ r2- `1Asistenta social ; . . ... I.. I.....I..I.....I....I....I..1.....1.11...::I.. 1..I..I ......I ... . .. . .....:. . ..,.. ........._........... ........ --IPersona_11-12~`14.000,00-r8.000,00~ .,....: . . ,111.. .......... .....~r-:)-~i~il~~]~~ .. .I1.,. ... . ..,. I.,.....,,. .,......*..,,...........,.. .....' 1... , . . ......1.....I..,...;~bfil-----~~r-~p~ ..... i .....1,......,..,,,.. .,. ,..,,,,.,..,...,,,.,.,. ...,,,,,....,,,.,..,.,,,.,.,..,..,,,.. ,,,., .,,. ,,,..,.. //~l~r~rfl~~./ .j../,. ._/..,,.......,\.,.: .j .~.,. .../. ~ .i, ., ,.,,,..,.,,,,.,,,,.,~I...._.,.,.,,,,,.~,..___._.,__.,,,,,,,.,...~ iI~:IGlobalII.Papeleria,impresih, .//... .. ..,. _,..,... .I..II copias,etc. ../ .. ..I ..,. .~. ..,,.. .' ..,,....I_,,,,,,,,., ,,,, _1.3Cost0 .de. ..Reasentamiento ,........._..,.,.,~..... . .. ..,..,I,/......,.....,.~ ,,I,. ,,,,, =-`I- .I..., . . ..,.... ........,,......_..............,.......,................ . Ic.,,..,,.,.,_,,...\%...i.,.A...........I..I....A... ,I.>\ I. omunicaciones mmm: ..j..., I.,:I .4I.,....,...,,...,.,,,,..,,::..,...,.,..__.,.,,.,....._,.. .,i449.712,OO ;I ,...,..>.._,..,C,.II....,.<....,A,.. .I I...1.ooo,oo .......: ..... ....,........... 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ? . . . . . . . . . . . . . . . . . . . . . . , . , . . . . . . . . . . . . . . . . 0 . . . . . . . . . . . . . . . . . . . . . ; .,,,,,.,,I,>,,.,,..,\> >........... ....,...I.1...x.I...5n Alquiler de oficina . I. .,r............ L.i i* ............................................,..A...........................>.....i1.l.. Global ;I ......+...n.......>...>.....,.......................... .. .. , / ,,, ....I\i: 3.000,00 Otros ,I. *.,.I.,....____n..........__........l....I I. .5 I......I s..I... ...A....<.................................i.............................................*.,................................................x.............................. i..<.II *- Global ~~~!l---~ /.>..i 2.000,00 \....\I.'i 1Sub Total ., ,,,.,...,,...................1.. .. I.I. .. ... ..::..I.............................................................................i .......................................................................................... 1-m; :: 577.712,OO ; . . . 1Imprevistos (10%) ....,........ .. ... ..... ... ....I..I.......I...I. ....I... ..... ... ... .... ... ,57.771,20 i 1Costo Total SL ,,,._.___.,,..,,,,.,,,,...,,,,,,,................ ....... I...I.I...I....I. . . .................... ..i /63X483,20 .:; 85 Cuadro No7 ,,__.._..........,,....................................... ,,,,,.,,,,.,,............,....,,,.........,,,.,.,,,...,,,..,,., .,.,,,.....: ...l,l,*........ .. t,.,._...__......................,...,.,.........,.,,,..,..,,..,,,,,,,,,..._....,,,,,,,,.,.......,,,,: ~I-~r~~IIBI ;; .. .,,..,v ............I...,.,.,,.,. .,~......../.. ,. 11../.......I/~.~.. ,, ., ,,.,.,~1.....I.I. ~~~ : ,.,,,..,....,\_...\/.....r.........x...,...i....I.. ,,,, )_.\...i\\......\..\\..........~.\/....\.\. ...> ,, ,.,.,:._,,.,....\.....A..,,,,,,..I (*) incluye a las ds varientes B y B' Programa de Compensacih Econdmica Este programa tiene coma objetivos viabilizar las acciones de reconocimiento econ6mico partial o total a 10stitulares, por sus predios afectados directamente, registrados y valorizados en el Programa de Empadronamiento. El pago en efectivo considera a 10stitulares con capacidad de gestih suficiente paraemprenderla btisquedade una nueva vivienda. La ejecucih de1 Programa de Compensacih Econhnica consta de las siguientes acciones a realizar: l Obtener el padr6n de titulares y sus predios seleccionados para el reconocimiento econhnico, con su respectivavalorizacih. * Comunicacih formal a 10stitulares mediante cartas notariales para su indemnizacih o la adquisicih de suspredios. l Suscripcidn de1Acta de Acuerdo para el reconocimiento econcimico y de aceptacidn de1 titular, mediante el trato directo. 86 l Establecer, publicar y comunicar a 10stitulares, 10s lugares, fechas y orden pertinente para el reconocimiento economico. * Pago en efectivo por el monto valorizado y la suscripcion de1document0 de Adquisici6n y que acrediteel desembolso. l Desmontaje o elirninacion de 10s predios indemnizados en forma total, por parte de1 Proyecto. El plazo parala ejecucion de1programa en cuestion seestima en 60 dias y serafinanciado por el Estado. En el cuadro adjunto se muestra el costo total estimado de la implementation de1Programa, el que llega a 10sSl. 264 440,OO. Cuadro No 8 :Icos Concept0 _._.._,.______,,..,,,,,,,. I .j j _______ ,,.,,..i . I............A...<..,,, ,,,,.,,.:.,>..,,,,,,,.....,,+,,,... 11Ufidad l-----l~(meses)~ ,.,..(I*. _,....v.,.,.,,,...>..*II....,...,_.,,....,...,i ,,..,_,,,,,, I ........... ....,,,::.................. ...L :!I Arquitecto (Jefe de Implementacih f._.Abogado --_.... .._.___._.......__.._....,,.,....,..,...... .... ....... ...... ............................,..... irihgeniero Civil j .......................................................................................................................................................................... ............................................................................................ 15:000!00`r5.000100 if..... .... ...... i_............a.>..,........_,,.....,.\.\..._......,........ Etapa de CoxIstruccih ..... Terrenos destinados Detalle constructive. ....I. ... . . I.. I..., de obras.. iI-... . . . .:. ~I..ago. econhico* .. ..I.. . .....-.-1..1... 1...... . ,,,,,,.,.: POST0 TOTAL1 (Sk) 104..I...1.... . .. .....1.... .I.,. 100,OO . . .I .1 ,, .,... ,...,.....,._____.,,.,__,,..,.,.,,,.,,,.,.,,,,,,,,,.,,..,.,,..,,,, ..,, ,,,._ ,,.,,,__. * Alternativa C Presupuesto de1Programa de Monitoreo Etapa de Post - Construccih El presupuestoresumen final no incluye 10sgastos de las demh unidades de vivienda y otras obras (escuela,posta etc.), que se realizan en el nuevo poblado y en 10sedificios multifamiliares. Este presupuestoresumen se grafica en el cuadroNo 9. Cuadro No 9 Presupesto Resumen Total del Proyecto Presupuesto de Empadronamiento,4a. Tasaciones y Proyecto Camino S/.91 5,420.OO $263,809.80 Presupuesto Alternativa A Programa Reubicacih al Km 122 (12 635,483.20 183,136.37 Presupuesto Alternativa B (Incluye dos variantes - 42 familias) 2,070,288.00 596,624.78 Presupuesto Alternativa C Programa Compensacih Econtjmica (6 264,440.OO 76,207.49 Gasto de M&ito&o bel Proyecto 173,500.00 50,000.00 COST0 TOTAL S/.4,059,131.20 $1,169,778.44 El plan financier0 propuestoparael plan de reasentamientose muestra en el cuadro No. 10. Cuadro No. 10 I Banco I Contratxtida I Total I lObras 1 728,000 1 392,000 I -I.120.000 I IServicios I 25.500 1 24.500 1 50.000 I ISub-total I 753,500 I 416.500 1 1.170.000 1 IPorcentaie I ' 64%1 36%1 lOO%l 89 16. Calendario (Diagrama De Gantt) Process Framework de las Familias de Q'ente y Wayllabamba ubicadas en el Ambito de Influencia de1Camino Inca de1HSMP i. Antecedentes El Proyecto "Rehabilitacibn y Recuperation de1Valle de1Vilcanota" (RRV), como lo expresasu nombre, tiene por objetivo central recuperar y conservar con sostenibilidad ambiental y econcimicaatractivos turisticos de1Santuario Historic0 de Machu Picchu (SHMP), tales como el Camino Inca (CI), y de1Valle Sagradode 10sIncas. El CI constituye una red de caminos dentro de1santuarioque es utilizada para el accesoen caminata, a la ciudadela de MP y que es recorrida anualmentepor aproximadamente 100,000personas. Adicionalmente a la mejora, ampliacion o creaci6n de infraestructura que beneficie la visita y recorrido de1CI, es necesario mitigar 10sefectos que producen cerca de 40 farnilias asentadas muy cerca de1 CI desde hate varios adios, pero cuyas actividades economicas (agricultura, ganaderia y comercio) afectan la sostenibilidad ambiental de1 CI y de1 SHMP. Entre estas actividades se tiene la crianza de animales, especialmente cabras y ganado vacuno, que afectan y dafian la flora y fauna de1CI y la venta de diversos productos manufacturados cuyos residuos son dificilmente retirados,reciclados o autodegradadosdentro de1santuario. 90 ii. Diagndstico socio econiimico de las familias ubicadas en el 6rea de influencia de1Camino Inca El Santuario Historico de Machu Picchu, alberga aproximadamente a 250 familias asentadasen el sector rural, que usufructuan una determinada area de tierras, principalmente orientadas a la agricultura y ganaderia. Sin embargo, ciertas areas,principalmente aledaiias a las viviendas, y en algunos cases las mismas tierras agricolas, vienen siendo utilizadas hoy en dia como areasde campamento representando una importante actividad economica de algunas familias, principalmente en 10ssectoresde Wayllabamba, Taryoq, J'atunchaca y Yuncachimpa, todas ellos pertenecientesa la comunidad de Wayllabamba. De todas las familias que habitan en el arearural de1SHMP, aquellas que se hallan en la zona de influencia de1 CI corresponden fundamentalmente a las de las comunidades de Q'ente y Wayllabamba, coma sepuedeapreciar en la tabla siguiente: 91 Tabla 1 Poblacih existente dentro de1SHMP Nom bre Poblados integrantes No Familias Poblacion Total .................................................................................................................................................................................................................................................... ................................................................................. Aobam ba 106 .............................................................................-...................... - 509 ......................................................................................... ..........................................................................................."......................................"..............................................................."..............................................................................-................................*I........................... Aobamba alta y baja 30 ........................_..............--...........................................................................................I...................................... liidroelectrica ............................................................................................I....................................................-.....................................................-..........."........... ............_....... 11 .......................................................................... .......................I.......................s.3......................................_.I......................._.........................................................................................."................65 lntiwatana ..............................................................-.........................".........................."....... Wayllabamba 75 360 . . . . . . . . . . . " . . . . . . . . . . T . " . . . . . . . . . . . . " . . . . . . . . . . . . . . . . . . . . . . . . . I . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " . . . . . . . . . . . _ . * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ . ...........................................................................................................................I...*..................................."...................................................."................................................... Patallaqta . . ............".............................................................................._............................................................. 9 ..............^........................................... .................................................................................................................................................................................................................."............................................................................................. Tarayoq 6 ......................................__..........-....... ......................................................... ............................I..-1.................-_................................................................".............*..........."..*......."............"................................................................................................................................................ Wayllabamba 30 ..-...........l............_..................... ........................................................................................................................................................".............................................................................................................................................................................................................I.........................-............"............. ..... Matara . 5 ..............................................................................................................................-.....................................".......... ..".......................................".........................................*....................."..........................................................................................................._.........................._....... Palcaq 3 .................................................................................................................................................................................................."........................-...............................................................................".......... Pampaccahuana margen Izq. y derech. del rio ..-.........................-........................................".........._.................................. 16 ..............................................................................................................................................................................................................I...........-..........................- lnka Raqay ..................................................................".........................-.........................."........................_......_.................-.... 6 San Antonio de 49 235 ............................................................................................ Torontoy ....................."............-........................................................................................................................................................................................-.......................................-......................................._............-................... .................................................................................................. ...................................................."....................................................................................................................................................................................................................................................................... San Antonio de Torontoy 3 .............................................................................................................. ............................................................................................"........................".........................-..........."......................................-............-...........-................................. ........................................-...... Lucmachayoq 3 .......I...............................................................................................................-...................................................".......................................................................................................................................... Cedrobam ba ...................................................................................................-....... 7 ............................................................................... ..................................."..........I................................................................................................................................................................."........................ Lucmachayoq ..-............-.....................................................-...........-........................._....... 2 ....... ............................................................................................................................................................................"............................................................................................."........................................................................................... Pampaccahuana 10 ..._............".........................-............-....... ............................................................................ .................................................*..................................................................."..................................................................................................................................................................................................................................... Retamal 4 ........-....................................................................................................I.....................................................I.......................................................................................................................................................................................................................................................... Qoriwayrachina IO ............................................................................................................................,"............"......................................."..........................".................................................... Choquelluska ..................................................................................................................................................................... IO .......*................................................................................................................................................................................................................... Mandor .."......................................._.........................-.....................................................-.........................-.................................-..................-....... 9 43 .......................................................... ..................................................................-......................................I_..................................................I............-............-....................... ................................................................. San Miguel 7 ..-............"............I.....................................................I...-.. ............................................................................................ .*.....................................................................................................................................................................................................................................................-................................................................. Mandor 2 ..-.................... ..........................................................................................Q'ente .................................-.*..........-........................_............I............................................................*.....................................................................*................I......................................... 8 .............................................................. 38 ...................................................................................-......................................................................................................................................................................................................... Machuq'ente .......................................................................................................... ............................... 5 Wavna Q'ente 3 Como se observa en la tabla, se hallan realmente den&o de1 hmbito de influencia de1CI 10s poblados que correspondena Q'ente y algunos que corresponden a Wayllabamba, de acuerdo con el siguiente detalle: Wayllabamba Patallacta 09 familias Wayllabamba 30 familias Q'ente Machuq'ente 05 familias Wayna Q'ente 03 familias Lo cual hate un total de 47 familias. 92 Wayllabamba Wayllabamba se encuentraen la parte central estede1SHMP. Geograficamente est6 ubicada al sureste de Q'ente y suroeste de Piscaycucho. Comprende varias comunidades o caserios, no todos ellos ubicados en 10smargenesde1CI. Wayllabamba es el asentamientocon mayor concentration poblacional en el SHMP pues cuenta con mas de 70 familias. Sus pobladoresseconsiderancomunidad campesina aunqueno tienen el status legal; sin embargo, funcionan coma tal. Por ello sele trata coma grupo social organizado. Las farnilias de Wayllabamba se hallan bastanteintegradasa la dinamica y explotacibn turistica de1CI coma se puedeobservar en la Tabla N02. Se puede apreciar que 17 de las 39 familias de esta comunidad instaladas en las inmediaciones de1CI cuentan con areas propias destinadas a campamentos, algunos de 10scuales est;iin.oficializados por el INRENA. Esta explotacion les permite diversificar la fuente de sus ingresos y capitalizar de 10s beneficios economicos que generael CI12. Ver Mapa 1 en el Anexo 18. En 10s otros sectores, 10s campamentos se ubican principalmente en terrenos que no tienen usufructuarios y son adrninistrados por el INRENA. En la Tabla No 2 se observa que de las personas o familias asentadasen el CI que poseen campamentos no existe ninguna en tal situation parala comunidad de Q'ente. 12 Actualmente se tiene 27 campamentos registrados en al red de Caminos Inca, de 10s cuales 17 de ellos se ubican dentro de1 SHMP, 3 en el SHMP y ZA, 7 campamentos registrados en la ZA entre ofkiales y alternativos. 93 Tabla 2 Relacih de Asentados con Campamentos, Zona Wavllabamba POBLADO PROPETARIO CARACTER Area ( m2) ... ,..J'atunchaca..I,........1............. . ..... . ......Quispe. .. . . .. .. .. . Constantino .. ...... Almiron , .. I.. . .I._.... .......-.*...Alternativo.....................1271.. .... .._... ._............... .... .. . J'atunchaca. .. . .3.. *.........Alejandro........Huaman.. , . . .....*.*......... ........... ... .. Alternativo. .. ,.,..*..,.,.,*.*..,,..,,,.... .. ..... 223 ..... J'atunchaca .. .,. . .Luis .Quispe ... .. ..... .... ...........,..................... ..AlternativoI...... .. ....., . ...I. ...I.. .........*..... . 219. .... . .,.... . J'atundhaca . . . .,, . 1 Exaltation Pedro Herrera Herrera . . . .**..........I.................*..Alternativo ..._............-......................................,..,....11...2. ..`.' ... "... ,.. .,,..J'atunchaca ... ... .... .....1.... . . . . ... .. ... .. . . ... . . ..,.... .. ... . , ..,.. 1...............*.._.Alternativo.................... ...232.. .I... ..... ... ...*....*..-..... ... Wayllabamba ... .. . ,.................Horatio.........Pezo......Herrera... .. . . ............ ....... ....... . Oficial .. .. +.......*.....*............ 339 ....,.Wayllabamba... ...........Mauro .. ......I.... . .. . . . ... .. .. ....I.........................*....I....Oficial. ........... . .. ,, ... ... ... .... .. Huaman ........ 134 . , , ... .. . ..... ._....... ,.,............... Wayllabamba Prudencio .ZuAiga... .. Escobedo.....*.........I...I.........Oficial..........................406 . I.... ...........*....*...*. ......... .. .. Wayllabamba ..... ....... .. ............Antonio.....*..Aranzabel...... .Alvarez... ........... ..*...*.*......*... ..,,. . *.,.. Oficial ....I..I . ..........108 .......... .. .*... Wayllabamba .... . ... ..................*.Cesar..*.....Castro........Huaman. . .,. ... .....*.. .......... ........ .. ,, " Oficral "I* , ,,,.*.........s..91 .......... ...**..*.*.. ....Wayllabamba,.I...........Dominga......Ccopa. ... ....Roque.. .. . ..... .. ..,,.............. . .Oficial .. . ,... ... . ....-........... . ....... . .. . ......_I...f........I.... . .. ..,,.135... . .. .... ... .Wayllabamba. ... . .. . . .-.. Luis. Herrera . .Huaman . ,,,,. . . ...... ........................Oficial....,.,..... . ..*. ....... . ,.. 224 ... .Wayllabamba.. ...........Venturino... ......*.Almiron.... .Escobedo .. _ , ... ,.... . -.. .... ................ ..I........ . ... . . . . . . Oficial . . . .. . ... . .. .278....... .,,,,. .. ... _. . Wayllabamba .,*. ..I. .. .. .I....,.. . Casiano....I.,.,........ ..... ... . .... .. .. 1.. ... . . .... ..,...,. . .,.....Oficial . . .. . . . . .,,..... I... Herrera .. ...... 422 ..._... Wayllabamba. . .............Venturino........Almiron..I.... ... . ... .. . ., ... . ...........Oficial.... , ....I. I.._.... . .. 11.1... Escobedo ...... . 323 .....Wayflabamba. .,......... ... .1... ..1.. Juan Herrera .........I......................Oficial....... ... .. .. .......... ,...302.. . ... .... ... Wayllabamba ...... I. 1 . ............Sebasti&...........Almiron. ...I. . ... .*........ .. . .... . .~. Oficial I. . . ..I......... 78 Total 4,582 En 10sotros sectores, 10scampamentos se ubican principalmente en terrenos que no tienen usufiuctuarios y son administrados por el INRENA. En la Tabla 2 se observa que de las personas o familias asentadasen el CT que poseen campamentos no existe ninguna en tal situation parala comunidad de Q'ente. Q `ente La comunidad de Q'ente correspondea un asentamiento de solo 8 familias, asentadasen forma dispersa en la margen izquierda de1 rio Vilcanota. Su mayor interrelacibn se da con la comunidad de SanAntonio de Torontoy ubicada al norte de esta comunidad (ver Mapa 1). Es en el sector de Q'ente donde muchos familiares de 10spobladores han ido migrando poco a poco hacia Urubamba, Ollantaytambo y Cusco. Geogrgficamente Q'ente se encuentra dentro de 10s hmites de1 Santuario Historic0 de Machu Picchu conjuntamente con Aobamba, Mandor, San Antonio de Torontoy y Wayllabamba como lo muestra el mapa N"1. La comunidad no cuenta con gran concentration humana ni estructura organica pero si es una unidad organizada que suede ser receptora de 10sprogramas propuestos para la gestion de1Santuario. Este asentamiento fue sectorizado coma tal por razonessociales, en vista de su mayor interrelation interna. A diferencia de Wayllabamba, la zona `de Q'ente se encuentra dentro de un 6.reaprotegida de mucha importancia ecologica y en la cual se situan importantes sitios y monumentos hist6ricos; por ello el inter& economico y turistico de esta zona para toda la region. 94