INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: ISDSC246 Public Disclosure Copy Date ISDS Prepared/Updated: 18-Oct-2011 I. BASIC INFORMATION A. Basic Project Data Country: Vietnam Project ID: P123384 Project Name: Danang Sustainable City Development Project (SCDP) (P123384) Task Team Leader: Cuong Duc Dang Estimated Appraisal Date: 22-Jan-2013 Estimated Board Date: 23-Jul-2013 Managing Unit: EASVS Lending Instrument: Specific Investment Loan Sector: General water, sanitation and flood protection sector (60%), General transportation sector (40%) Theme: Urban services and housing for the poor (30%), Municipal governance and institution building (30%), Pollution management and environ mental health (20%), Infrastructure services for private sector development (10%), Other urban development (10%) Financing (In USD Million) Financing Source Amount BORROWER/RECIPIENT 69.70 International Bank for Reconstruction and Development 40.00 International Development Association (IDA) 132.50 Total 242.20 Environmental Category: B - Partial Assessment Is this a Repeater project? No B. Project Objectives The project aims to help Da Nang become a more sustainable city that benefits all citizens by improving urban environment and urban mobility in a clean, safe, inclusive, and energy efficient manner. Public Disclosure Copy C. Project Description The proposed project, which is estimated to cost US$ 242.1 million (including land acquisition), would be the third major World Bank-funded urban infrastructure project in Da Nang. It would build on investments underway in the current Priority Infrastructure Investment Project (PIIP) on upgrading and expansion of environmental infrastructure and would finance construction of a pilot bus-rapid-transit (BRT) corridor and two new urban roads. It will also include capacity building in transport and traffic management and in management and provision of wastewater services. This project will be the first investment project in Da Nang using a combination of IDA (US$ 132.5 million) and IBRD funding (US$ 40.0 million. The project consists of four main components: - Component 1: Drainage and Wastewater Improvement (US$ 116.8 million, of which IDA US$ 85.2 million). Leveraging investments under the previous two World Bank funded projects (Three Cities Sanitation Project, and ongoing PIIP), this component will help Da Nang further implement its wastewater management strategy to meet its targets for 2030, including reducing flooding and upgrading and expanding wastewater collection systems in fast growing areas of Da Nang (including the higher poverty area of Lien Chieu). The city#s wastewater management strategy is based on comprehensive studies and hydraulic modeling that have been carried out over the past several years, in part with support from the PIIP. Key activities of this component are rehabilitation of three existing lakes to better regulate their hydrological functions, upgrading Hoa Xuan secondary WWTP (first phase construction is being financed under PIIP); construction of the new secondary treatment Lien Chieu WWTP; three resettlement sites, and upgrading and expansion of wastewater and drainage systems in Lien Chieu District. - Component 2: Bus Rapid Transit Development (US$ 40.2 million of which IDA US$ 31.0 million). This component will help Da Nang pilot a BRT corridor - an integrated public transport system - as part of the city's efforts to provide high quality public transport services. The corridor has been identified based on the city's Master Plan up to 2025, the JICA-funded Integrated Development Plan, the KfW-funded bus service study, and the World Bank/AusAid-funded Da Nang BRT Pre-feasibility Study (which was formally approved by the City Government). The corridor is approximately 22 km long and connects the Hoa Khanh industrial area in the north with the University Zone in the south. Proposed investments under this component include BRT stations/terminals, dedicated bus lanes, clean BRT vehicles, road safety and traffic management measures along the corridor and adjacent streets, and BRT operation and traffic command centers. In addition the project will provide technical support to BRT operation and traffic management, including parking control. - Component 3: Urban Strategic Roads (US$ 76.1 million of which IDA US$ 7.3 million and IBRD US$ 40.0 million). Two new urban roads, with a total length of about 14 km, will be constructed under this component. Identified as strategic roads in the City's Master Plan, both roads will improve connectivity of urban roads, especially east/west connections to the north/south City By-Pass and national expressway network. The two roads are: i) the University Avenue Extension (UAE) in the southern part of the city, 8.25 km long linking the University Avenue/Highway 1A intersection with Highway 14 B and ii) the Northern Da Nang City Link Road, about 6 km long, linking Highway 1 with the Da Nang Bypass Road. The latter would be the last connection of the By-Pass to the City road network, as already agreed between the Ministry of Transport and the City. The two roads will help provide access to two new development zones in the western part of the city, which according to the Master Plan are critical for accommodating urban population growth in the near to medium future, particularly lower and middle income populations. The roads will be designed with a right of way for future inclusion of a dedicated public transport system, taking into consideration possible evolution of traffic demands beyond the project#s lifetime. The City will use domestic funds to construct the first 2.7 km out of 6.17 km of the northern link road, and include the remaining section in the proposed project. The entire northern link road is however considered to be a part of the project from the point Public Disclosure Copy of view of safeguards policies of the Bank. - Component 4: Technical Assistance and Capacity Building (US$ 9.0 million to be financed by IDA). Continuing with the technical assistance on urban infrastructure management being conducted under the ongoing PIIP, this component will help Da Nang implement a comprehensive capacity building plan (including training, focused studies, demand-driven technical assistance and mentoring, and peer learning and knowledge sharing with other cities) which will strengthen Da Nang's institutional capacity for sustainable urban development, with a particular focus on: (i) strategic planning and effective management of drainage and wastewater collection and treatment systems, including in the areas of technical capacity strengthening, improving financial sustainability and introducing private sector participation in the operations and maintenance of wastewater treatment plants; (ii) public transport operation, road safety, urban traffic management including parking control; as well as (iii) integrated city planning and possibly urban energy efficiency improvements. The latter would build on recommendations of the Tool for Rapid Assessment of City Energy (TRACE) technical assistance being provided by the Bank to Da Nang. Detailed technical assistance activities under this component will be identified during project preparation. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The project is located entirely in Da Nang City. The area of influence will include: (a) areas directly affected by all the infrastructures to be constructed with Bank#s financing and their ancillary components; (b) a broader area spanning beyond the directly affected area, especially considering areas under potential socio-economic impacts, if any, brought by the new BRT line. E. Borrowers Institutional Capacity for Safeguard Policies The project would be prepared by the existing project management unit (PMU) for the PIIP which has considerable experience in preparing and implementing Bank safeguard policies since this same unit has been responsible for two Bank-funded projects extending over more than a decade. As has been documented by project closing reports and evaluations carried out as part of World Bank supervision missions, the PMU has adequately prepared and implemented safeguard issues on Bank projects. There is a sub-unit inside the PMU with experienced staff responsible for social and environment safeguard issues. It will have to be confirmed that for the new project, this unit has sufficient safeguards capacity. During project preparation lessons learned from the PIIP project (on implementation of safeguard mitigation measures, institutional issues, monitoring, etc.) will be incorporated into the design of the new project#s safeguard instruments. Da Nang People#s Committee (PC) and related government agencies to which the PMU is responsible are also familiar with the Bank safeguard requirements. F. Environmental and Social Safeguards Specialists on the Team Douglas J. Graham (EASVS) Phuong Thi Thanh Tran (EASVS) Hoa Thi Mong Pham (EASVS) Public Disclosure Copy II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/BP 4.01 Yes OP 4.01 is triggered as potential environmental impacts are expected to result from the investments under the project and their ancillary facilities. Potential impacts would be expected from: - Upgrading of one and construction of a second wastewater treatment plant (WWTP). In addition to construction impacts, there are potential impacts related to effluent quality and potential impacts on receiving waters. Sludge will be produced by the WWTPs and the project will need to consider where and how the sludge will be disposed of, the potential level of contamination of the sludge, and transportation of the sludge. Minor environmental impacts might arise from operation of the WWTPs such as odor problems, occupational health and safety considerations, noise, disturbances to traffic patterns, and visual landscape impacts. - Rehabilitation of lakes might involve dredging. In this event field investigations will be carried out to: (i) determine the composition of the sediments to be dredged, especially concerning the presence of contaminated materials (especially hazardous materials, concentration of heavy metals); (ii) confirm if there is any aquatic habitat which should not be disturbed; (iii) the effect of dissolved oxygen depletion and its implications on dredging operation arrangements; and iv) Disposal of dredging materials at suitable sites. - The BRT component will involve upgrading and/or construction of dedicated bus lanes and other related infrastructure. These investments will involve typical impacts of construction activities in dense urban areas such as disturbance of traffic, temporary or permanent impacts on businesses, noise, safety, and air pollution. - Construction of 14 km of urban roads. Typical impacts of urban road construction will need to be carefully addressed such as disturbance of traffic, temporary or permanent impacts on businesses, noise, safety, air pollution, and possible impacts on natural habitats (to be determined). There could be impacts related to potential secondary investments such as resettlement sites, borrow Public Disclosure Copy pits, feeder roads, or access roads. There will not be any worker camps under this project as all investments take place in urban environments with good access to construction sites and an abundant local workforce. An Environmental Impact Assessment (EIA) for the WWTP investments has already been prepared by the City with support from the PIIP project and a draft copy was submitted to the Bank in June 2011. If it is determined as necessary, after Bank review of the initial draft, this EIA will be revised to meet Bank standards. An Environmental Impact Assessment (EIA) will be carried out during project preparation for all remaining investments under the project, including ancillary facilities such as pumping stations, bus depots, and BRT terminals. The EIA will include an analysis of alternatives of all investments under the project, including for the BRT component for which there are potentially a range of other conceivable solutions to the same traffic problems and which may have different types of environmental impacts. It will include an assessment of cumulative impacts. An environmental management plan (EMP) or plans, as needed, will be developed as part of the EIA. These will lay out detailed plans for the mitigation of all identified impacts and will address institutional responsibilities, costs and financing, and monitoring. Environmental codes of practice (ECOPs) will be detailed in the EMP and will be included as appropriate in all eventual bidding documents, which will also include remedial measures in the event on non- compliance by contractors with environmental provisions. During preparation it will be determined what types of ECOPs will be most appropriate for the investments to be financed. The EIA will include comprehensive information on the public consultation process and how this consultation was taken into account in the preparation of the project. The project will include appropriate grievance resolution mechanisms not only for resettlement but for any public complaint that arises during the implementation of the project. In addition, a social assessment will be conducted as part of the EIA to analyze potential positive and negative social impacts other than involuntary resettlement (covered below) which would need to be addressed and/or mitigated in the project design and implementation. Natural Habitats OP/BP 4.04 No The City of Da Nang is highly urbanized and contains virtually no remaining Public Disclosure Copy areas of natural habitats. The project proponent has indicated that the project infrastructure investments will not impact any area of natural habitat. The project area (including the site of the future new WWTP and the trajectory of the Northern Da Nang City Link Road) has been visited twice by World Bank environment specialists, covering virtually the entire project area, and these site visits have supported this contention # the project will take place in completely urban areas and in some agricultural areas. Existing water courses are natural habitats but the project will only have a positive impact on these areas by reducing discharges of untreated domestic wastewater. The project therefore does not trigger the Natural Habitats Policy as there are almost no natural areas which will be impacted by the project and certainly no possibility of significant impacts on natural habitats. Forests OP/BP 4.36 No The project will not involve in any way managed areas of forests so this policy is not triggered. Pest Management OP 4.09 No The project will not involve any investment that would result in procurement of pesticides or any increase in the use of pesticides. The policy is not triggered. Physical Cultural Resources OP/BP 4.11 Yes Project scoping has indicated there will be about 40 graves that will need to be moved, and for this reason the policy is triggered. The scoping has determined that the project area does not include any known physical cultural resources such as temples or archeological sites (during preparation this will however be verified as there are some temples in vicinity of project investments which need further investigation). Procedures for moving graves are well established in Da Nang and not controversial; these measures will be included in the resettlement action plan or EMP, as considered most appropriate. If other PCRs are found during preparation, additional appropriate mitigation measures will be developed. In any event, a Chance Finds Procedure will be prepared, in case project activities result in discovery of any PCR not identified by Appraisal, and this will be included in the EMP and in all bidding documents, as appropriate. If any PCR were discovered as a result of the chance find procedures, a management plan acceptable to the Bank would be prepared. Indigenous Peoples OP/BP 4.10 No Screening carried out by the Bank's social safeguard specialist showed that there are no ethnic minority peoples as defined by OP4.10 in the project area. Therefore OP4.10 is not triggered. Involuntary Resettlement OP/BP 4.12 Yes Preliminary surveys have showed that about 287 ha of land would need to be Public Disclosure Copy acquired for the project, of which about 185 ha is agricultural land and 8 ha is residential land. The number of affected households is about 911, of which 246 households are expected to be relocated. Three resettlement sites with a total of about 30 ha are planned to be included in the project to accommodate the relocated households. Since all households to be resettled are expected to be known before project appraisal, Resettlement Plans (RPs) will be developed for all project investments before project appraisal. The RP(s) to be prepared will include lessons learned from other Bank-funded projects in Da Nang to speed up the compensation and resettlement process for the SCDP. As mentioned above, the first 2.7 km out of 6.17 km of the northern link road will be constructed by the Government starting in the second half of 2011. As defined under the Bank#s policy, this section is considered to be a part of the project, so the land acquisition for this part will also follow the Bank#s IR policy. Under this part of the road, about 216 affected households of 2.1 km have received compensation during 2008-2011 and an additional 62 households of 0.6 km remain to be compensated and relocated. It was agreed that a separate RP will be prepared for the whole section (2.7 km) funded by the City (where there is a real RP for 0.6 km not yet compensated and due diligence review and measures to address the gaps, if any, for the 2.1km already compensated. Safety of Dams OP/BP 4.37 No The project involves no construction of dams nor is the project vulnerable in any way to any upstream dam. The policy is not triggered. Projects on International Waterways OP/BP No No project activities are to be carried out on an international waterway. The 7.50 policy is not triggered. Projects in Disputed Areas OP/BP 7.60 No No part of the project area is in a disputed area so the policy is not triggered. III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: B. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing1 should be specified in the PAD-stage ISDS: Public Disclosure Copy The specific studies and their timing will be specified in the PAD-stage ISDS. IV. APPROVALS Task Team Leader: Name: Cuong Duc Dang Approved By: Regional Safeguards Coordinator: Name: Panneer Selvam Lakshminarayanan (RSA) Date: 07-Mar-2012 Sector Manager: Name: Jennifer J. Sara (SM) Date: 30-Nov-2011 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.