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Integrated Safeguards Data Sheet (ISDS) 
Section I 
–
Basic Information 
Date ISDS Prepared/Updated: February 16, 2005                                       
Report No.:AC928
 
A. Basic Project Data  
A.1. Project Statistics 
Country: Nigeria 
Project ID: P071391 
Project: Second National Urban Water Sector 
Reform Project 
TTL: Alexander McPhail 
Total project cost (by component): $220.0 million  
Rehabilitation and Network Expansion: $168.4 million  
Public-Private Partnership Development: $9.8 million 
Service Sustainability & Project Mgt.: $12.7 million 
Institutional Development and Policy Reform: $12.3 million 
Contingencies and Unallocated: $14.7 million 
Re-Pay and PPF: $2.0 million 
 
Appraisal Date: March 21, 2005 
Loan/Credit amount ($million):  
IDA: $200.0 
Board Date: May 31, 2005 
  
Other financing amounts by source:  
Local government ($20 million) 
Managing Unit: AFTU2 
Sector: Water Supply (90%) Sub national 
Government administration (10%) 
Lending Instruments: Specific Investment 
Loan 
 
Is this project processed under OP 8.50 (Emergency 
recovery?) 
Yes?
[
]
No?
[x ] 
Environmental Category:  B 
 
A.2. Project Objectives 
 
The Project’s principal development outcomes are: (i) increased reliability and financial 
viability of selected urban water utilities; and (ii) increased access to piped water networks in 
selected urban areas. Progress toward these principal development outcomes will be 
measured through: (i) the increase in water delivered through existing and extended 
networks; (ii) improvements in cost recovery; and (iii) increase in the number of households 
having access to the piped water network. 
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A.3. Project Description 
 
The Project will be implemented in three states in Nigeria: Lagos, Cross River and a third 
state that will be identified early in implementation.  Given the development objectives 
described above, the Project emphasizes financing for water system rehabilitation, increasing 
treatment capacity and adding household and standpipe connections.  It will also finance 
management interventions and strengthening.  The Project also encompasses management 
contracts for utility operations in Lagos and Cross River States and may help to finance these 
contracts. 
 
The Project has four components and a large unallocated amount to cover unidentified 
project costs in the state yet to be identified during implementation.   
 
a)  Rehabilitation and Network Expansion (US$168.4 million):
 
This component will include 
civil works to be executed in Lagos and Cross River State. Works will include the 
following: (i) rehabilitation of treatment plant(s) and transmission line(s); (ii) service area 
network rehabilitation and metering; (iii) network expansion; and (iv) additional works 
which may be identified at appraisal.   These investments will be phased across the life of 
the project taking into account the following factors: (i) the need for an early increase in 
water production capacity from both surface and ground water resources; (ii) the need for 
early installation of bulk water meters and regulating valves in order to control the flows 
to respective service areas; (iii) the need for early restructuring in the operation of water 
transmission and water storage systems; and (iv) the need for rehabilitation/strengthening 
of the distribution systems over a longer time period. The component will also finance 
the purchase of vehicles and equipment. 
 
In Lagos, this component will namely cover namely Ikeja, Ikoyi, and Lagos Island, as 
well as  works at the Adiyan and Akute Iju intakes and treatment works. 
 
In Cross River State, the urban areas to be included under this component will be 
Calabar, Ikom, Ogoja, and Obudo.   
 
b)  Public-Private Partnership (PSP) Development (US$ 9.8 million):   
Lagos: The LSWC’s vision for PSP in the sector is based on a prudent, stepwise approach 
which takes into account both the size of the water sector in Lagos and the current 
difficult environment surrounding international financial markets.  The Project will 
support this approach by assisting the LSWC in contracting private sector operators to 
establish three Private Sector Units (PSUs) in the service areas of Ikeja, Ikoyi and Lagos 
Island.  The Project will also support the implementation of a multi-year management 
contract for the principal treatment and bulk transmission systems. This component will 
finance costs associated with transaction design and tendering for the PSUs, as well as 
the private operator fees for the treatment and transmission management contract. 
Cross River State: Recognizing that Cross River State is already implementing a PPP 
arrangement, the Project will evaluate the current situation to ascertain the nature of 
support required by the CRSWB to further improve the implementation of the PPP.  At 
Appraisal, the current management contract which serves as the legal framework for 
implementing the PPP will be examined in more detail with a view to fashion out 
implementation arrangements that will ensure sustained and improved delivery of the 
services.  The Bank notes that aspects such as strengthening supervision of the 
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management contract, monitoring and auditing of performance and introducing pro-poor 
provisions are important.   
 
c) 
Service Sustainability and Project Management (US$ 12.7 million):  
This component will 
assist 
the LSWC and CRSWB through: (i) expert technical assistance in various areas, 
from institutional organization to financial management and R&D; (ii) financing 
critical operating costs; (iii) the design and implementation of a communication and 
stakeholder outreach programs; (iv) the purchase of office equipment and light 
vehicles; and (v) financing PIU running costs. 
 
d)  Institutional Development and Policy Reform(US$ 12.3 million):  
As a contribution to 
 developing and implementing the sector’s long-term reform and sustainability, this 
component will finance: (i) expert technical assistance; (ii) expert commercial and 
management assistance; (iii) studies to underpin reforming the regulatory framework for 
water supply and distribution; (iv) regulator training (v) training and workshops and (vi) 
River Basin Initiatives and MDG tracking. 
 
A.4. 
Project Location and salient physical characteristics relevant to the safeguard 
analysis
:
The Project will be implemented in established urban areas in three states in Nigeria: Lagos, 
Cross River and a third state that will be identified early in implementation.  In Lagos, the 
project will focus on the distribution networks in Ikeja, Ikoyi, and Lagos Island. It will also 
support works at the Adiyan and Akute Iju intakes and treatment works.  In Cross River, the 
four urban areas to be included are Calabar, Obudu, Ogoja, and Ikom.  In all cases, water is 
sourced from nearby rivers, some of which are regulated by upstream dams. 
B. Check Environmental Category 
A
[
], B [X], C [ ], FI [ ] 
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Given that this is a Category B project, AFTU2 wishes to request transfer of safeguards 
review and clearance responsibility once the Final ISDS has been cleared by ASPEN. 
C. Safeguard Policies Triggered 
 
Yes No 
 
Environmental Assessment
(
OP
/
BP
/
GP
4.01) [X] 
[ 
] 
 
Natural Habitats
(
OP
/
BP
4.04) [ 
] 
[X] 
 
Pest Management
(OP 4.09) 
[ ] 
[X] 
 
Cultural Property
(draft OP 4.11 - 
OPN 11.03
-) [ 
] 
[X]  
Involuntary Resettlement
(
OP
/
BP
4.12) [X] [ 
] 
 
Indigenous Peoples
(
OD 4.20
)
[
]
[X]  
Forests
(
OP
/
BP
4.36) [ 
] 
[X] 
 
Safety of Dams
(
OP
/
BP
4.37) [X] 
[ 
] 
 
Projects in Disputed Areas
(
OP
/
BP
/
GP
7.60)
*
[
]
[X]  
Projects on International Waterways
(
OP
/
BP
/GP 7.50) 
[X] [ 
] 
 
Section II 
–
Key Safeguard Issues and Their Management  
D. Summary of Key Safeguard Issues
.
D.1. Safeguard issues and impacts associated with the proposed project. Potential large scale, 
significant and/or irreversible impacts. 
 
No large scale, significant and/or irreversible impacts are anticipated. 
 
Environmental Assessment:
 
In Lagos State, civil works will be entirely rehabilitation of 
existing infrastructure involving only temporary inconvenience to adjacent properties and 
commercial activities, plus network extensions into an area east of Ikoyi beside existing and 
planned roads, the latter on unused land reclaimed from the lagoon.  A minor existing 
environmental issue is the disposal of treatment plant sludge at Iju and Adiyan.  Currently, 
the clarifiers do not work, and the slightly acidic sludge is discharged into small nearby 
rivers.  River ecology and hydrology appears to be affected and, at Adiyan, the sediments are 
contributing to periodic flooding of a community road.  An action plan is being prepared to 
address these issues. 
In Cross River State, the environmental and resettlement consequences of anticipated civil 
works are likely to be very minor to none, given normally responsible construction planning 
and management.  Nonetheless, uncertainties about the nature and scope of civil works in 
Obudu, Ogoja and Ikom lead to the determination that an Environmental and Social 
Management Framework (ESMF) would be prepared for the project.  
 
Resettlement:
 
Land acquisition is expected to be minimal to none since civil works will 
largely be rehabilitation of existing infrastructure, and some extensions of treatment facilities 
within current plant boundaries, and of distribution networks alongside existing roads.   
*
By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' 
claims on the disputed areas
 
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Nonetheless, uncertainties about the nature and scope of civil works in Obudu, Ogoja and 
Ikom lead to the determination that a Resettlement Policy Framework (RPF) prepared for the 
project. 
 
Dam Safety:
 
The dam safety report (DSR) prepared for the ongoing Nigeria National Urban 
Water Sector Reform Project (Cr. 3924) (NUWSRP1) covered the dam regulating water 
supply to Lagos, but not dams in Cross River State.  The Owelobudu Dam regulating water 
supply for Obudu in Cross River State does need remedial work on the spillway.  Thus, it 
was determined that the NUWSRP1 DSR would be extended to include Cross River State. 
 
International Waterways:
 
The City of 
Ikom draws its water from the Cross River which has 
its source in Cameroon, thus trigg
ering the Bank’s International Waterways policy (OP 7.50).  
Nigeria does have a general agreement with Cameroon on the use of the river, but 
notification under OP 7.50 is still required under World Bank guidelines and will be done in 
mid-February 2005. 
 
D.2 Describe any potential indirect and/or long term impacts due to anticipated future 
activities in the project area. 
 
No adverse long-term impacts are anticipated. 
 
With water supply projects, there is the concern that improving accessibility will lead to 
increased sewage and wastewater, and consequent surface/groundwater quality and health 
impacts.   In this context, the Project will provide technical assistance at least in Lagos to 
characterize the nature and extent of any current surface or groundwater quality problems in 
urban areas with a view to supporting of future sewage, wastewater and groundwater 
management programs 
 
D.3. Treatment of alternatives (if relevant) 
 
Not relevant 
 
D.4. Measures taken by the borrower to address safeguard issues. Provide an assessment of 
borrower capacity to plan and implement the measures described. 
 
The borrower prepared an ESMF, RPF and DSR for the first NUWSRP, in collaboration with 
the relevant state water and environmental agencies, and has the capacity to do so for this 
project.   The state environmental agencies have adequate capacity for specifying, reviewing 
and supervising any EA or EMP requirements as the project is implemented.  As in the first 
NUWSRP project, the Bank will include provisions for technical assistance to the Lagos and 
Cross River water authorities so they can adequately manage the safeguards aspects of 
project implementation.  
 
D.5. Key stakeholders and describe the mechanisms for consultation and disclosure on 
safeguard policies, with an emphasis on potentially affected people. 
 
A
stakeholder specialist and a strategic communication team were part of the preparation 
team to ensure the involvement of key local stakeholders in all Project phases through a 
comprehensive Communication and Stakeholder Outreach Program.  
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All decisions related to the Project's components and implementation arrangements have 
been taken in consultation with community representatives, State Governments, Local 
Governments and Federal agencies. Consumer and stakeholder consultations included a 
comprehensive communication audit which assessed perceptions, attitudes, and beliefs of 
stakeholders vis-
ŕ-vis PSP in Lagos water provision. The communication audit also served as 
a
baseline for the design and implementation of a comprehensive strategic communication 
program to support the LSWC’s PSP policy and consumers’ concerns regarding the PSP.  
 
A
Social Assessment to be conducted in the three states will examine the range of 
stakeholders’ interests, and address potential social risks to the Project and Project social 
impacts on local consumers, the water boards, and informal providers. The Project’s social 
impact will be monitored through a stakeholder survey at the Mid-Term Review and 
Project’s completion.  
 
All Project’s public documents will be made available at the federal, state and local levels at 
suitable locations.  
 
F. Disclosure Requirements 
Date
 
Environmental Assessment
/Audit/Management Plan/Other:  
Date of receipt by the Bank 
   3/12/2005 (anticipated) 
Date of “in-country” disclosure 
 3/17/2005 (anticipated) 
Date of submission to InfoShop 
 3/17/2005 (anticipated) 
For category A projects, date of distributing the Executive Summary of the EA to the 
Executive Directors 
Not Applicable 
Resettlement Action Plan/Framework/Policy Process: 
Date of receipt by the Bank 
03/12/2005 (anticipated) 
Date of “in-country” disclosure 
03/17/2005 (anticipated) 
Date of submission to InfoShop 
03/17/2005 (anticipated) 
Indigenous Peoples Development Plan/Framework:  
Date of receipt by the Bank 
Not Applicable 
Date of “in-country” disclosure 
Not Applicable 
Date of submission to InfoShop 
Not Applicable 
Pest Management Plan:  
 
Date of receipt by the Bank 
Not Applicable 
Date of “in-country” disclosure 
Not Applicable 
Date of submission to InfoShop 
Not Applicable 
Dam Safety Management Plan:  
  
Date of receipt by the Bank 
03/12/2005 (anticipated) 
Date of “in-country” disclosure 
03/17/2005 (anticipated) 
Date of submission to InfoShop 
03/17/2005 (anticipated) 
If in-country disclosure of any of the above documents is not expected, please explain why. 
 
N/A 
 
Section III 
–
Compliance Monitoring Indicators at the Corporate Level 
(To be filled in when the ISDS is finalized by the project decision meeting) 
OP/BP 4.01 - Environment Assessment:
 
Yes
No
Does the project require a stand-alone EA (including EMP) report?  
X 
 
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If yes, then did the Regional Environment Unit review and approve 
the EA report? 
In process 
 
Are the cost and the accountabilities for the EMP incorporated in 
the credit/loan? 
X
OP/BP 4.04 - Natural Habitats: 
Yes
No
Would the project result in any significant conversion  or 
degradation of critical natural habitats? 
 X 
If the project would result in significant conversion or degradation 
of other (non-critical) natural habitats, does the project include 
mitigation measures acceptable to the Bank? 
 N/A 
OP 4.09 - Pest Management: 
Yes
No
Does the EA adequately address the pest management issues? 
 
N/A 
Is a separate PMP required? 
 
X 
If yes,  are PMP requirements included in project design? 
 
N/A 
Draft OP 4.11 (OPN 11.03) - Cultural Property: 
Yes
No
Does the EA include adequate measures? 
 
N/A 
Does the credit/loan incorporate mechanisms to mitigate the 
potential adverse impacts on physical cultural resources? 
 N/A 
OD 4.20 - Indigenous Peoples: 
Yes
No
Has a separate indigenous people development plan been prepared 
in consultation with the Indigenous People? 
 N/A 
If yes, then did the Regional Social Development Unit review and 
approve the plan? 
 N/A 
If the whole project is designed to benefit IP, has the design been 
reviewed and approved by the Regional Social Development Unit? 
 N/A 
OP/BP 4.12 - Involuntary Resettlement: 
Yes
No
Has a resettlement action plan, policy framework or policy process 
been prepared? 
In process
 
If yes, then did the Regional Social Development Unit review and 
approve the plan / policy framework / policy process? 
In process
 
OP/BP 4.36 
–
Forests: 
Yes
No
Has the sector-wide analysis of policy and institutional issues and 
constraints been carried out? 
 N/A 
Does the project design include satisfactory measures to overcome 
these constraints? 
 N/A 
Does the project finance commercial harvesting, and if so, does it 
include provisions for certification system? 
 N/A 
OP/BP 4.37 - Safety of Dams: 
Yes
No
Have dam safety plans been prepared? 
In process
 
Have the TORs as well as composition for the independent Panel of 
Experts (POE) been reviewed and approved by the Bank? 
 
Has an Emergency Preparedness Plan (EPP) been prepared and 
arrangements been made for public awareness and training? 
 
OP 7.50 - Projects on International Waterways: 
Yes
No
Have the other riparians been notified of the project? 
In process
 
If the project falls under one of the exceptions to the notification 
requirement, then has this been cleared with the Legal Department, 
and the memo to the RVP prepared and sent? 
 N/A 
What are the reasons for the exception? 
 
N/A 
Please explain: 
 
N/A 
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Has the RVP approved such an exception? 
 
N/A 
OP 7.60 - Projects in Disputed Areas
:
Yes
No
Has the memo conveying all pertinent information on the 
international aspects of the project, including the procedures to be 
followed, and the recommendations for dealing with the issue, been 
prepared, cleared with the Legal Department and sent to the RVP? 
 N/A 
Does the PAD/MOP include the standard disclaimer referred to in 
the OP? 
 N/A 
BP 17.50 - Public Disclosure: 
Yes
No
Have relevant safeguard policies documents been sent to the World 
Bank's Infoshop? 
In process
 
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? 
In process
 
All Safeguard Policies: 
Yes
No
Have satisfactory calendar, budget and clear institutional 
responsibilities been prepared for the implementation of the 
safeguard measures? 
X
Have safeguard measures costs been included in project cost? 
X 
 
Will the safeguard measures costs be funded as part of project 
implementation? 
X
Does the Monitoring and Evaluation system of the project include 
the monitoring of safeguard impacts and measures? 
X
Have satisfactory implementation arrangements been agreed with 
the borrower and the same been adequately reflected in the project 
legal documents? 
In process
 
Signed and submitted by:
 Name
Date
Task Team Leader: 
Alexander McPhail 
February 16, 2005 
Project Safeguards Specialist 
1: 
John Boyle 
 
Project Safeguards Specialist 
2: 
 
Project Safeguards Specialist 
3: 
 
Approved by:
 Name
Date
Regional Safeguards 
Coordinator: 
Thomas Walton 
 
Comments: 
Sector Manager: 
Eustache Ouayoro,  Sector 
Manager 
February 16, 2005 
Comments: 
AMcPhail 
P:\NIGERIA\WUE\WATER\PAD\NUWSRP2 ISDS Appraisal Stage Feb 10.doc 
February 17, 2005 3:15 PM