Page 1 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 03/20/2008 Report No.: AC3201 1. Basic Project Data Country: Burundi Project ID: P097974 Project Name: Multi-Sector Infrastructure Project Task Team Leader: Ventura Bengoechea Estimated Appraisal Date: March 25, 2008 Estimated Board Date: May 13, 2008 Managing Unit: AFTU2 Lending Instrument: Specific Investment Loan Sector: Power (60%);Water supply (40%) Theme: State enterprise/bank restructuring and privatization (P);Regulation and competition policy (S) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): 50.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 0.00 0.00 Environmental Category: B - Partial Assessment Simplified Processing Simple [X] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and Emergencies) Yes [ ] No [X] 2. Project Objectives The proposed project development objective is to (a) increase access to water supply services in peri-urban areas of Bujumbura; (b) increase the reliability and quality of electricity services; (c) increase the quality and reliability of water supply services, with primary focus on Bujumbura; and (d) strengthen REGIDESO’s financial sustainability. The project will accomplish this by helping REGIDESO to restore its financial and commercial viability and the quality and continuity of services in the face of the increasing demand from individual consumers and economic agents. The project has been designed to provide a balance between immediate needs and medium- to long-term planning. It addresses to the urgent need to fill the current gaps between supply and demand in both electricity and water supply. At the same time, the project supports long term planning activities and studies, as well as the strengthening of the operational capacity of the main sector institutions in order to avoid or effectively reduce future gaps. As noted above, the project will contribute to the higher level objectives described in the ISN. Indeed, better electricity service will prompt economic growth and diversification by allowing current commercial and industrial users to function better and prospective entrants (domestic and foreign) to establish themselves in Burundi more readily. Page 2 Improved and expanded water services will contribute to public health and social stability. By rapidly improving access to basic water service for thousands of bene ficiaries in the capital’s outskirts, where the population is predominantly of low- and very low-income. The improvement of service coverage will indeed contribute to long term human resources enrichment and economic growth by allowing children to attend school, and adults (especially women) to engage in additional productive activities instead of spending several hours each day searching for water. 3. Project Description The credit instrument will be a Specific Investment Loan (SIL). The proposed project would comprise three components: (i) Electricity component, which will support emergency investments to rehabilitate the electricity supply system and reduce the supply/demand gap; (ii) water component, which will support urgent/short term investments to increase access to water supply, reduce losses and reinforce the capacity of the supply and distribution system; and (iii) Institutional component, which will support the strengthening of the capacities of both REGIDESO and MWEM. The proposed implementation period is 5 years; the tentative amount of the IDA grant would be US$50 million. The allocation of funding between the components would be the following: US$31 million for the electricity component, US$15 million for the water supply component; and US$4 million for the capacity strengthening component. These amounts will be confirmed during the appraisal mission. Component 1 - Electricity (US$ 31.0 million). This component will focus on restoring a quality electricity supply by financing major rehabilitation of the backbone transmission and distribution grid and increasing generation capacity while financing demand side activities to increase efficiency and reduce consumption at peak hours. In addition, the component will address medium to long term energy needs by supporting technical studies on alternative energy sources and the preparation of bidding documents for the next increments of small and large sized hydropower plants. Component 2 - Water (US$15 million). This component will focus on reducing leakage, selectively rehabilitating and expanding production facilities and networks, extending the service to unserved peri-urban areas of Bujumbura and preparing technical studies and tender documents for some secondary centers. An update of Bujumbura’s water master plan, which was done as part of project preparation, will guide the implementation of the sub-components below. In addition, the project will fund a study to support the development of improved sanitation in urban areas. Component 3 - Institutional (US$ 4 million). The objective of this component is to enhance the ability and effectiveness of the public-public partnership between REGIDESO and the Government to deliver improved electricity and water services. Specifically, the component will help REGIDESO to (i) meet specific performance indicators to improve operational and financial performance, through the execution of a performance contract with the State; (ii) assist REGIDESO in launching a delegated standpost kiosk management program in the periphery of Bujumbura to improve service Page 3 delivery at existing and new standposts; and (iii) improve the planning and monitoring capacities of the MWEM and its ability to provide support to REGIDESO when needed. 4. Project Location and salient physical characteristics relevant to the safeguard analysis The project will be in Bujumbura especially in the Northern area of the city. 5. Environmental and Social Safeguards Specialists Mr Abdoul-Wahab Seyni (AFTCS) Mr Africa Eshogba Olojoba (AFTEN) 6. Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: No long term adverse impacts were identified in the Environmental Assessment instrument: Environment and Social Management Framework (ESMF). This project will not fund activities that would cause an adverse effect on the environment or any form of land acquisition or restriction of access to sources of livelihoods. The potential environmental and social impacts of sub-projects under components 1 and 2 will be small-scale and site-specific; and thus easily remediable typical of category B projects. Where project activities will potentially impact negatively on people living and/or working on or near the project areas, the procedures as described in the resettlement policy framework will become applicable. Accordingly, people will be compensated and/or resettled for any loss that they may incur due to project activities. Likewise, no project activities will be implemented until a resettlement plan has been prepared, approved of (by the government as well as by the World Bank) and disclosed. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: No long-term adverse impact is anticipated. Page 4 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Not applicable. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. Prior to appraisal, the borrower prepared an Environmental and Social Management Framework (ESMF) and a Resettlement Policy Framework (RPF). The two reports have been reviewed and final versions disclosed in country and at the Bank’s Infoshop. The PIU has already designated an environmental and social specialist who will be responsible for following up safeguards issues as and when they arise during project implementation. Capacity building sessions will be provided by the team or consultants to insure smooth implementation and safeguards compliance. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The PIU, private enterprises, REGIDESO, ministries of mines and energy, public works and environment and NGOs. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 02/07/2008 Date of "in-country" disclosure 02/06/2008 Date of submission to InfoShop 02/21/2008 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 02/07/2008 Date of "in-country" disclosure 02/06/2008 Date of submission to InfoShop 02/21/2008 Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Page 5 * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Sector Manager (SM) review and approve the EA report? Yes Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? Yes If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? Yes The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Infoshop? Yes Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? Yes All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Yes Have costs related to safeguard policy measures been included in the project cost? Yes Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Yes Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? Yes Page 6 D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Ventura Bengoechea 03/19/2008 Environmental Specialist: Mr Africa Eshogba Olojoba 03/19/2008 Social Development Specialist Mr Abdoul-Wahab Seyni 03/19/2008 Additional Environmental and/or Social Development Specialist(s): Approved by: Sector Manager: Mr Eustache Ouayoro 03/19/2008 Comments: