Page 1 PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB762 Project Name CO TAL Sustainable Development Region LATIN AMERICA AND CARIBBEAN Sector Central government administration (30%); Health (30%); General water, sanitation and flood protection sector (30%); General transportation sector (10%) Project ID P082520 Borrower(s) GOV OF COLOMBIA Implementing Agency NATIONAL DEVELOPMENT PLANNING AGENCY Environment Category [ ] A [ ] B [X] C [ ] FI [ ] TBD (to be determined) Safeguard Classification [ ] S 1 [ ] S 2 [X] S 3 [ ] S F [ ] TBD (to be determined) Date PID Prepared April 19, 2004 Estimated Date of Appraisal Authorization June 30, 2004 Estimated Date of Board Approval September 23, 2004 1. Key development issues and rationale for Bank involvement The proposed operation directly supports the Borrower’s objectives to implement Millennium Development Goal number 7, target 9, namely “to integrate the principles of sustainable development into country policies and programs and reverse the loss of environmental resources.” The proposed Technical Assistance Loan (TAL) would assist the Borrower to implement the policy and institutional reforms that are part of the Sustainable Development SAL program. This operation is in response to a direct request (letter from Alejandro Gaviria to Isabel Guerrero dated November 26, 2003) by the Borrower. The Sustainable Development SAL program is included in the current Colombia CAS, and directly contributes to the CAS objective of achieving fast and sustainable growth through the promotion of environmental mainstreaming. The TAL is clearly an essential instrument to support implementation of the SAL program. One of the main lessons that has been drawn from the Mexico Environmental SAL 1 is that, given the intersectoral nature of the SAL program and the fact that intersectoral coordination is typically a slow process that needs continuous budgetary and technical support, it is important to accompany the SAL with a TAL to ensure sustainability of reforms. This finding is further supported by the results of the recent review of programmatic operations conducted by OPCS for the Board. The proposed TAL design is based on a solid foundation of analytical work, including the Colombia Country Environmental Analysis (currently underway), which has identified the need (i) for systematic priority setting across environmental programs and subsectors in the Colombian National Environmental System ( Sistema Nacional Ambiental, SINA); (ii) to develop and implement appropriate environmental tools to achieve results-based goals; as well as (iii) to implement institutional and regulatory measures to improve the effectiveness and efficiency of institutions. Page 2 Relevant lessons and outputs from the Bank-financed Colombia Urban Environment Management TA Project and the Colombia Regulatory Reform TA project have also been taken into account in designing the program. These include the importance of upfront establishment of result and impact indicators and their measurement throughout the project’s lifetime; the need to incorporate mechanisms for inter-institutional coordination in projects; and the dependence of project impacts on the leadership and technical capacity of the executing agency as well as availability of resources. With respect to collaboration with other external assistance agencies, the Bank in the design of this program, has coordinated closely with the Andean Development Corporation and with the Inter-American Development Bank to ensure complementarity of efforts and avoidance of overlaps. In this respect the TAL has been designed in such a way as to directly complement IDB’s SINA II project currently under preparation. In that regard, the TAL focuses on environmental governance issues, as well as on mainstreaming environment in the water, housing, health and transport sectors. On the other hand, the SINA II project will focus on reforestation and cleaner production activities. 2. Proposed objective(s) The objectives of the Colombia Sustainable Development TAL are to (i) support the incorporation of environmental and social considerations in the policies and programs that principally result in a high cost of environmental degradation, urban air pollution, water contamination, natural disasters and indoor air pollution; and (ii) strengthen the capacity of the National Department of Planning (DNP), the Ministry of Environment, Housing and Territorial Development (MAVDT), the Ministry of Transport, and the Ministry of Health to improve the effectiveness and efficiency of Colombia’s environmental management. The corresponding improvements in public health, productivity, and quality of life through reduction of air and water pollution, vulnerability to natural disasters, and environmental health and safety problems associated with the transport sector will principally benefit the poor, particularly children, who are typically the most affected by this degradation. 3. Preliminary description All the components of the Colombia Sustainable Development TAL stem from studies conducted under the CEA and are directly linked with the SAL program. The TAL will provide assistance to develop tools for the Regional Autonomous Environmental Corporations (CARs) and Urban Environmental Authorities to implement the policies issued under the first operation of the SAL program. Through its support of policy implementation, the TAL will help ensure that the most vulnerable segments of society have a voice (“a seat at the table”) in the identification of the costs and benefits associated with a particular policy. With respect to program implementation, the TAL will promote the integration of components, into broader programs, aimed at improving the health and quality of life of the poor. The TAL will also support the implementation of environmental policy instruments such as command and control, economic instruments, environmental impact assessment, public disclosure and land use planning to promote environmental mainstreaming and improve quality of life. The project components under consideration include: Page 3 (1) Mainstreaming environmental and social concerns in priority sectors . This component would support the Government of Colombia with respect to policy, program and instrument implementation, through the provision of technical assistance in the environmental health, water resources management, environmental education, territorial development, and urban environment sectors. Improvements in health conditions would be supported by providing assistance in defining policy proposals and actions to prevent and control diseases that have environment-related causes, such as waterborne and hygiene-related diseases and diseases related to exposure to ambient air pollution and indoor air pollution, particularly among the most vulnerable groups. Water and sanitation improvements would be supported through technical assistance for the preparation, public consultation, and implementation of a proposed water resources management law and development of associated regulations once approved. In addition, technical assistance would be provided to support the implementation of a program, such as a hand washing program, that promotes personal hygiene and prevents hygiene-related diseases among the most vulnerable groups. The loan would support the preparation of an urban environmental policy aimed to improve quality of life conditions for the poorest segments of the population, taking into account the reduction of vulnerability to natural disasters, indoor air pollution control, and increased access to public space. This policy would foster an urban environmental governance system to help address housing needs and also improve quality of life and to prevent informal housing developments in disaster-prone areas in the future. With respect to environmental mainstreaming in the transportation sector, the loan would provide technical assistance to control pollution from mobile sources, through programs to improve fuel quality and reduce emissions, and promote pedestrian walkways and bicycle paths. Furthermore, these programs would also take into consideration technology-based standards (e.g., catalytic converters), road-user charges (e.g., tolls), and economic incentives to reduce dependency on motorized transportation and to promote alternative transportation. (2) Improving the effectiveness of environmental management in Colombia . This component will provide technical assistance to the MAVDT in (a) developing an incentive framework conducive to sustainable development; (b) defining competencies across institutions and strengthening coordination among key stakeholders; (c) strengthening key processes related to environmental policies (e.g., pollution control and waste management and disposal); and (d) ensuring accountability and transparency in environmental management. In particular, the TAL will support actions to improve quality control and assurance of analytical processes for the monitoring of indicators established in the Three-Year Action plans ( Plan de acción tri-annual, PAT) of the constituent institutions of the SINA, particularly the CARs. In addition, the TAL will provide technical assistance to the SINA institutions to improve their management information systems to facilitate the collection and public disclosure of environmental information. These systems will support systems for monitoring, surveillance and assessment of compliance with the goals established in the PATs of the CARs. The TAL will Page 4 also include technical assistance to offices of the Judiciary, Attorney General, and Financial Comptroller. 4. Safeguard policies that might apply [Guideline: Refer to section 5 of the PCN. Which safeguard policies might apply to the project and in what ways? What actions might be needed during project preparation to assess safeguard issues and prepare to mitigate them?] The project will support the implementation of policies, programs, and tools to incorporate environmental and social issues in key sectors. The social and environmental impacts of the project are therefore expected to be positive. The TAL will play a key role in mitigating the adverse environmental and social impacts associated with long-term environmental degradation in Colombia. A category ‘C’ environmental rating is proposed for the project. 5. Tentative financing Source: ($m.) BORROWER 0 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 11 Total 11 6. Contact point Contact: Ernesto Sanchez-Triana Title: Sr Environmental Engr. Tel: (202) 473-6952 Fax: Email: esancheztriana@worldbank.org Note: This is information on an evolving project. Certain components may not necessarily be included in the final project.