Page 1 PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB2452 Project Name CO BOGOTA URBAN SERVICES 2 Region LATIN AMERICA AND CARIBBEAN Sector General transportation sector (40%);Sanitation (18%);Water supply (17%);Sub-national government administration (15%);Other social services (10%) Project ID P094986 Borrower(s) MUNICIPALITY OF BOGOTA Implementing Agency Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared June 22, 2006 Estimated Date of Appraisal Authorization November, 2006 Estimated Date of Board Approval January 25, 2007 1. Key development issues and rationale for Bank involvement Among the main problems facing the city of Bogotá are (i) deficient land management policies, (ii) unsatisfied demand for basic urban services, (iii) high unemployment and underemployment rates, and (iv) urban violence, even if the level has been substantially reduced in the last years . Nevertheless, Bogotá has achieved over the last decade great improvements in mobility, public services and infrastructure that has had a positive impact on the quality of life of its residents. While the first project was focused mainly on the transport sector, BUS 1 has supported an urban upgrading approach aimed at improving urban livability in informal settlements and increasing mobility of the low-income families in the city. The project focuses on 14 UPZs 1 . The main achievements of this approach is that the District has switched from an approach by sector to a more sophisticated multi-sectoral one, integrating in specific areas the different sectors that participate in improving all aspects of life quality, sanitary conditions, access to employment, development of community participation. As a consequence, the project dealt with the District institutions in charge of these sectors, leading to improved coordination among them. Of the many challenges faced by the District, the following issues in urban development need to be addressed: - Institutional issues . Today many Bogotá institutions are involved in the urban development program and have successfully developed a high level approach. However, the Government acknowledges the need for strengthening coordination among these institutions to reach a better synergy. 1 Unidades de Planeamiento Zona. The UPZs, identified under the POT, consist of neighborhoods classified according to various physical and functional characteristics. Under this classification, there are 26 UPZs with deficiencies in infrastructure, accessibility, public space and services. Page 2 - Geographical focus and high investment needs . Almost half of Bogotá population still lives in informal settlements where they lack basic services and need housing improvement. While the BUS 1 project achieved positive results in the 14 selected UPZs, the needs for improvements in the same areas remain high. The District of Bogotá thus acknowledged the need to scale up the area of focus to the 26 UPZs. - Institutional issues . Today many Bogotá institutions are involved in the urban development program and have successfully developed high level approach. However, the Government acknowledges the need for strengthening coordination among these institutions to reach a better synergy. - Integrated urban upgrading approach . The integrated urban improvement requires tackling a large number of sectors and is complex by definition. The Bank and the District agreed that, while improving water, wastewater, mobility and housing are key to poverty alleviation, the District is now ready to develop a more advanced stage of urban upgrading process, with bank assistance focusing on coordination. Based on demand from the communities, the project will include local economic development and crime and violence reduction as additional actions to support quality of life improvement. . - Mobility . Even though the Bogotá District has improved significantly during the last 10 years the transport system with the Transmilenio system, feeder routes that connect the transport system to the poor neighborhoods, local mobility corridors and bikeways with Bank assistance, some areas such as road safety, the re-organization of the transport system under one unified system, and the implementation of a sustainable road maintenance program still need to be improved. - Quantitative and qualitative housing deficit . The housing deficit in 2003 was estimated at about 325,795 units and for the year 2010 the housing deficit is estimated at 500,000 units. 2 While the POT has earmarked approximately 6,555 hectares of urban land for expansion, the District needs to identify more efficient ways of using urban land available with (i) urban renewal, and densification programs; and (ii) promoting new access to financing for low-income families. - Need for Technical Assistance support in key issues like resettlement, solid waste and air quality . The achievements of BUS 1 in these sectors were remarkable, and the District now looks for Bank assistance to achieve more advanced stages. The Resettlement policy has been prepared in the previous project and the new objectives will be to enforce this policy with coordination among institutions and standardization of compensation methods. The Solid Waste Master Plan has been designed and the next objective is to develop a good partnership with the private sector for a successful implementation stage. The District prepared an Air Quality program under the first project and looks forward to Bank assistance to redefine the Environment Department (DAMA) role, focusing more on norm production and control, and transferring implementation to other operational departments. Bank rationale. The Bank has a competitive advantage in working with the District for three reasons. First, the Bank can bring a strong value added in convening groups and institutions to 2 UN-Habitat, 2004 and Metrovivienda data Page 3 strengthen and coordinate policies. Second, the Bank and District have a more than 10 year partnership with a track record of results. Finally, the Bank has expertise and experience in transport and urban upgrading activities in many countries, and particular i n Bogotá, as well as more recent experience in new fields like crime and violence prevention in poor neighborhoods. While being the major partner in the sector, the Bank coordinates well with KfW, the German cooperation, in the prevention of crime and violence. 2. Proposed objective(s) The project will aim at improving the quality of life of the population living in the poorest areas of the city, specifically in the 26 UPZs (urban zones) identified in the city’s long-term strategic plan. The specific objectives include: (i) create institutional capacity to coordinate and manage comprehensive multisectoral investments in poor neighborhoods; (ii) increase quality of life in the 26 UPZs by the provision of adequate infrastructure and improving public safety; (iii) improve the quality of shelter through tenure regularization, house improvement, and access to micro-credit; (iv) promote community participation across the different components of the project; and (v) improve urban mobility. 3. Preliminary description Component 1- Urban upgrading . This component design is based on the experience of the BUS 1, and will expand from the 14 UPZs supported in BUS I to 26 UPZs in the proposed project. Subcomponents include: (i) legalization of about 65 neighborhoods; (ii) provision of water, sewerage and drainage; (iii) design and construction of local mobility corridors; (iv) community based programs supporting productivity and crime and violence prevention; (v) land regularization; (vi) home improvement including micro-credit and subsidies; and (vii) construction of urban facilities, public space and equipment. Component 2 – Mobility. The component will improve access and reduce commuting time for poor population of low income neighborhoods, facilitating their capacity to improve their economic situation with better access to jobs, health centers and schools. The components will focus on : (i) improving, upgrading and rehabilitation of roads for general circulation as well as feeder routes from the poor neighborhoods to the Transmilenio system. By connecting the neighborhoods to the Transmilenio system, these feeder routes constitute an essential part of the city’s integrated transport system; and (ii) non-motorized transport, including construction and maintenance of bicycle paths and sidewalks, parallel sidewalk improvement; improvement and maintenance of the existing bicycle paths; and promotion of the use of the bicycle paths. Component 3 - Technical assistance. This component includes assistance for: (i) implementation of the resettlement policy prepared under BUS 1; (ii) institutional capacity building for crime and violence prevention; (iii) monitoring urban development; (iv) implementation support for the Air Quality Program begun under BUS 1; (v) solid waste management, specifically establishing a development strategy with waste pickers to manage recycling in parks; (vi) strengthening the capacity for improved mobility including public transport restructuring, road safety and Page 4 definition of road maintenance programs ; and (vii) fiscal sustainability of investments, initiated in BUS 1. 4. Safeguard policies that might apply The Environment Policy (OP/BP 4.1) will be triggered during the project implementation. Under the urban upgrading component, the project's investments will consist of small infrastructure upgrade works in Bogota's UPZs. These will basically include laying pipes for water supply and sewer collection, and construction of access roads, parks and open spaces. Appropriate and low-cost technical altematives will be used. As such, no significant environmental impacts are expected. Most impacts will be associated with construction nuissances in populated areas. Under the improved mobility component, feeder routes for the Transmilenio system, will be constructed in the UPZ neighborhoods. A screening of the potential impacts was carried out for the first phase (BUS I), which has determined that the most relevant aspects to be considered in the EA are associated to the construction period For these types of activities, a Category B environmental rating is considered appropriate. The impacts, as described above, are not expected to be significant, or irreversible. No significant adverse environmental impacts are expected. The cumulative impacts from the interventions in the UPZs are expected to be wholly positive. No significant adverse environmental impacts are expected. The long-term impacts from the interventions in the UPZs are expected to be wholly positive. Recommendations for mitigation measures for the identified impacts will be included in an Environmental Management Plan, which will make part of the bidding and contract documents for the works, and which will use IDU's existing guidelines. The Involuntary Resettlement Policy (OP/BP4.12) may be triggered during the project. The resettlement component is integral to the overall objective of improving the living conditions in these low-income neighborhoods. A resettlement framework will be prepared for the resettlement of populations displaced by construction of the feeder routes, urban space upgrade, and non motorized corridors. Resettlement, carried out in accordance with the Bank's Resettlement Policy, will be an opportunity for improving the living conditions of families living in the UPZs, since they can not afford the costs of building a safe and titled house 5. Tentative financing Source: ($m.) BORROWER 30 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 30 Total 60 6. Contact Contact Maryse Gautier (TTL) Mauricio Cuellar Title Sr Urban Management Specialist Sr Transport specialist Page 5 Tel (1) 202 473 75 93 (57) 1 326 3600 Fax (1) 202 522 35 52 (57) 1 326 3480 Email mgautier@worldbank.org mcuellar@worldbank.org