1 25336 THE WORLD BANK GROUP 4f Inhop Report No AC081172 Integrated Safeguards Data Sheet (Updated) Date ISDS Prepared/Updated: 03/28/2003 Section I - Basic Information A. Basic Project Data Country: HONDURAS Project ID: P081172 Project: Regional Development in the Copan Valley Task Team Leader: Maria-Valeria Pena Project Authorized to Appraise Date: March 26, 2003 IBRD Amount ($m): Bank Approval: June 24, 2003 IDA Amount ($m): 11.00 Managing Unit: LCSEO Sector: Sub-national government administration Lending Instrument: Specific Investment Loan (SL) (20%); Agricultural extension and research (20%); Status: Lending Micro- and SME finance (20%); Vocational training (20%); Other industry (20%) Theme: Rural non-farm income generation (P); Other environment and natural resources management (P); Gender (S); Indigenous peoples (S) I.A.2. Project Objectives: The development objective of the Regional Development in the Copan Valley Project - Copan Valley - is to achieve sustainable tourism development based on the cultural and natural patrimony of the Copan Valley which will, as a result, create employment and reduce poverty in one of the poorest regions of Honduras. This project will achieve its development objective by supporting: (a) the creation of a tourism circuit in the Copan Valley that integrates four archeological parks and a fifth in Guanaja; (b) ecologically sustainable management in the five parks and surrounding areas to address negative impacts provoked by poverty, deforestation, erosion, and natural disasters; (c) environmental education that is appropriate to the biodiversity and the historical characteristics of the region; (d) technical skills building for employment associated with park development, eco/cultural guiding, and the tourism service sector; and (e) access to training and technical assistance for high-quality alternative products and services provided by indigenous and locally-owned enterprises to generate income and foster longer stays, encouraging a local investment climate. I.A.3. Project Description: Component 1 - Integrated Development of Archaeological Parks will implement an integrated program of tourism infrastructure and participatory management of archeological parks. This component will fund: (a) the implementation of the Management Plan priorities in the Copan Archeological Park with environmental and cultural education activities; and (b) Management Plans and implementation of 2 ISDS priorities in El Puente, Los Naranjos, Cerro Palenque, and Guanaja. Component 2 - Income Generation Opportunities will implement a program of formation and incentives to foster income generation opportunities for populations in the project areas, particularly the very poor. This component will fund: (a) local capacity building, skills development, and training for archeological assistants, guides, and tourism service workers; and (b) income generation opportunities with a pre-feasibility study to identify profitable market niches, training and technical assistance for vulnerable groups, and Fondo Prosperidad, a revolving fund to make resources available to subprojects that respond to niches identified by the pre-feasibility study. Component 3 - Institutional Development will design and operate institutional capacity building in tourism and cultural management for public, private, and civil society actors at the local and national levels. This component will fund: (a) capacity building and communications; and (b) enhancements to the PIU and monitoring and evaluation. I.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas.) The project areas are the Copan Valley, El Puente near Copan, Los Naranjos Eco-Archeological Park East of Copan, Cerro Palenque Park near San Pedro Sula, and "Plan Grande" on Guanaja in the Bay Islands. All of these sites include environmental and cultural resources and in some cases such as, Los Naranjos and Guanaja, include environmentally sensitive environmental areas The EA details the nearby National Parks and protected areas. The western region of Honduras, including the Copan Department, is inhabited by a larger proportion of the country's poor and the project will specifically target this group. Beneficiaries are expected to be Maya Chorti indigenous peoples. All local residents in and around the parks involved in the project are potential beneficiaries. The expected benefits include poverty reduction and enhanced prosperity among the poorest households in the CopAn Valley area as a result of diversified economic activities, employment, and increased tourism demand. It is estimated that the Income Generation Opportunities Component will directly benefit about 2,000 families in the area, and it will provide special attention to poor rural indigenous women. B. Check Environmental Classification: B (Partial Assessment) Comments: C. Safeguard Policies Triggered Policy Applicability Environmental Assessment (OP/BP/GP 4.01) * Yes 0 No Natural Habitats (OP/BP/GP 4.04) * Yes 0 No Forestry (OP/GP 4.36) 0 Yes * No Pest Management (OP 4.09) O Yes * No Cultural Property (OPN 11.03) * Yes O No Indigenous Peoples (OD 4.20) * Yes O No Involuntary Resettlement (OP/BP 4.12) 0 Yes * No Safety of Dams (OP/BP 4.37) 0 Yes * No Projects in International Waterways (OP/BP/GP 7.50) 0 Yes * No 3 ISDS Projects in Disputed Areas (OP/BP/GP 7.60)* 0 Yes * No l *By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas Section II - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data. II.D. Ia. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts. No major environmental impacts are envisioned in this project; however the EA does highlight potential synergistic impacts that may be caused by tourist development such as: unplanned park development; increase in neighboring populations; the impact of a larger number of visitors on natural and cultural resources; an increase in demand for public services such as water and electricity; and the generation of waste and garbage. The project will seek to reduce the impacts caused by tourism development by including a Strategic Environmental Assessment (SEA) within the Management Plans for each park. The EA document includes guidelines and a conceptual model for the development of participatory Management Plans (Annex 4 of EA), which can be adapted to the needs of each particular area. The Management Plans will include a detailed monitoring plan to identify and mitigate any potential problems. Infrastructure sub-components will entail mainly the rehabilitation and/or expansion of existing infrastructure. Impacts from new infrastructure such as expansion of existing electric transmission lines and archeological research laboratories will be direct and localized in specific areas. The EA recommends three methodological tools to be applied for infrastructure activities: (a) guide for categorization of projects based on type of project and level of sensitivity, taking into account the Safeguard Policies of the Bank; (b) fieldwork checklist to determine potential social and environmental impacts of infrastructure subprojects; and (c) an environmental manual for all infrastructure subprojects which addresses among other items: site selection, construction activities and environmental specifications for contractors, preventative measures, security, communication with community, chance-finding procedures, and environmental supervision during the construction. Models and formats for these tools are included in the full EA document. There are not expected to be any significant environmental impacts from the subprojects implemented by the Fondo Prosperidad. This Fund can actually serve to support the environmental education programs. Criteria will be specified in the Operations Manual with an emphasis on ecological and environmental awareness. The Involuntary Resettlement policy will not be triggered. The EA and social analysis indicate that there are not expected to be any restrictions or prohibitions on populations living near the archeological sites. As the bulk of project beneficiaries include indigenous populations, the project is designed to follow the principles of the Bank's Indigenous Peoples Policy and no Indigenous Peoples Development Plan (IPDP) is required. With respect to the Cultural Property Policy, an updated reconnaissance survey of the cultural property of each site is maintained by the Honduras Institute of Anthropology and History. Through the participatory Management Plans, the project will prevent any damage or destruction of cultural property. The cultural property aspects of the project were consulted with Asociaci6n Copan, a local, well-respected nonprofit organization with extensive experience in archeological research and education. Indeed, the objective of the project is to create conditions for the preservation the cultural patrimony of the country, currently endangered given lack of security in the Parks. 4 ISDS II.D.Ib. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. Not expected. Il.D. I c Describe any potential long term impacts due to anticipated future activities in the project area. The Environmental Assessment includes specific Terms of Reference (Annex 4) to address long-term environmental issues to be included in the SEA and Management Plans for each Park. Il.D.2. In light of 1, describe the proposed treatment of alternatives (if required) II.D.3. Describe arrangement for the borrower to address safeguard issues The EA document includes guidelines and a conceptual model for the development of participatory Management Plans (Annex 4 of EA), which can be adapted to the needs of each particular area. The EA recommends three methodological tools to be applied for infrastructure activities: (a) guide for categorization of projects based on type of project and level of sensitivity, taking into account the Safeguard Policies of the Bank; (b) fieldwork checklist to determine potential social and environmental impacts of infrastructure subprojects; and (c) an environmental manual for all infrastructure subprojects which addresses among other items: site selection, construction activities and environmental specifications for contractors, preventative measures, security, communication with community, chance-finding procedures, and environmental supervision during the construction. Models and formats for these tools are included in the full EA document. II.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The EA was received on March 5, 2003 and submitted to the InfoShop March 7, 2003. It is available in Honduras in the Resident Mission, the Project Implementing Unit for the Sustainable Coastal Tourism Project in the Honduras Institute of Tourism, and the Protected Area Department in the Ministry of Natural Resources and the Environment (SERNA). The findings of the assessment have been provided to key stakeholder groups. The main stakeholders (representing the Ministries of Tourism and Culture, IHT, IHAH, Finance, and SERNA; representatives from the Asociaci6n Copan, consultants, and PIU staff) participated in a two-day logical framework planning session in February 2003 with participation of the Environmental Specialist. The main environmental issues were discussed and the Environmental Assessment process was explained. The Environmental Specialist also visited all project sites and discussed proposed project activities with IHAH and IHT staff, and other associated specialists. The Management Plan for Copan, financed by the PROFUTURO Project, included consultation with local residents, nonprofit organizations, and experts. During project implementation, the Management Plans with Environmental Assessments for El Puente, Los Naranjos, Cerro Palenque, and Guanaja will be informed by a wide consultation process with stakeholders in each respective locale. This process will be guided by the recommendations from the EA and the model used for the development of the Management Plan for Copan. E. Safeguards Classification. Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply. [ ] SI. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks 5 ISDS in management of one or more safeguard areas [X] S2. - One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable [ ] S3. - No safeguard issues [ ] SF. - Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues. F. Disclosure Requirements Environmental Assessment/Analysis/Management Plan: Expected Actual Date of receipt by the Bank 3/10/2003 3/5/2003 Date of "in-country" disclosure 3/10/2003 3/6/2003 Date of submission to InfoShop 3/10/2003 3/7/2003 Date of distributing the Exec. Summary of the EA to the ED (For category A projects) Resettlement Action Plan/Framework: Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Indigenous Peoples Development Plan/Framework. Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Dam Safety Managemnent Plan. Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop If in-country disclosure of any of the above documents is not expected, please explain why. Sigzned and submitted by Name Date Task Team Leader: Maria-Valeria Pena 3/25/2003 Project Safeguards Specialists 1: Project Safeguards Specialists 2: Project Safeguards Specialists 3: Annroved by: Name Date Regional Safeguards Coordinator: Juan D. Quintero 3/25/2003 Sector Manager/Director: John Redwood 3/25/2003 For a list of World Bank news releases on projects and reports, click here I SCIFWACK 1 sm iiP .- *I SIXWUSE, lo