25558 THE WORLD BANK GROUP Qfo S-ho 'Mc W" KUL Integrated Safeguards Data Sheet (Updated) Date ISDS Prepared/Updated: 03/24/2003 Section I - Basic Information A. Basic Project Data Country: BOLIVIA Project ID: P073367 Project: Bolivia: Decentralized Energy, Information and Task Team Leader: Dana Rysankova Communications Technology for Rural Transformation Authorized to Appraise Date: March 6, 2003 IBRD Amount ($m): Bank Approval: May 29, 2003 IDA Amount ($m): 20.00 Managing Unit: LCSFR Sector: District heating and energy efficiency Lending Instrument: Adaptable Program Loan (APL) services (34%); Information technology (33%); Status. Lending General energy sector (33%) Theme: Other rural development (P); Infrastructure services for private sector development (S); Other urban development (S); Poverty strategy; analysis and monitoring (S) I.A.2. Project Objectives: The project development objective is to expand and improve delivery of electricity and ICT services through private-sector led mechanisms as a catalyst for the development of rural areas in Bolivia. Phase I activities will be confined to the following specific interventions in the identified project areas: (i) increasing access to rural infrastructure services by using innovative, output-based, decentralized service delivery models with increased private-sector participation and community involvement; (ii) defining and implementing improvements in policy, regulatory and institutional frameworks, and strengthening the respective key institutions; (iii) identifying and developing applications for the productive and social uses of electricity and ICT; (iv) intensively promoting the new services, including market development and training of local users, service providers and authorities; and (v) implementing rigorous monitoring and evaluation programs. I.A.3. Project Description: The National Rural Infrastructure Strategy TA will assist the Vice-Ministries of Energy and Communications in developing effective strategies to improve and accelerate electricity and ICT coverage expansion in rural areas, particularly addressing the following aspects: availability of financing; efficient planning and prioritization of investment projects based on "bottom-up" identification of demand and binding cost-minimizing criteria; efficient private-sector participation in investment, operation and maintenance (O&M); competitive allocation of subsidies; adequate user contributions based on capacity to pay; appropriate O&M arrangements ensuring long-term sustainability of investments; and introduction of adequate technical standards and regulations for rural areas. 2 ISDS The Rural coverage expansion component aims at direct expansion of electricity and phonle service into rural areas through a competitive award of subsidies to private-sector operators. Its sub-components are: the Solar PV Market Development sub-component, which will implement private-sector led off grid service delivery models, providing up to 20,000 new rural households, micro-enterprises, schools and health posts with sustainable electricity by offering a menu of decentralized service options (opening the Bolivian market for the first time to solar home systems below 40 Wp); the Grid Densification sub-component, which will develop new regulatory standards, build capacity and implement a demonstration investment project that densifies existing grids within a radius of 1 km; the Telephone Coverage Expansion sub-component, which will extend cell phone coverage to 42 municipal sections with populations of between 2,000 and 10,000 inhabitants that do not have cell phone service and/or a central telephone; and the Other Energy and ICT Investment sub-components, which will pilot additional small interventions related to the coverage expansion component, primarily pico-hydro stations (very small, household-based hydro units). The Productive and Social Uses component will identify, develop, facilitate and promote productive and social uses of the installed infrastructure. The Promotion, Communication and Capacity Building component will provide a common platform for community consultations, promotion campaigns and training of users in using the new infrastructure efficiently and productively. The Project Management, Monitoring and Evaluation component will focus primarily on monitoring and evaluation (M&E), including: development of M&E indicators, baseline and methodology; periodic evaluation of progress toward achieving the identified targets; and final evaluation upon project completion. l.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.) Zone 1 (Departments of Oruro and Potosi) includes 26 municipalities. This region is characterized by its elevation-between 3,000 and 4,000 meters above sea level. The main productive activities include quinua, llamas and alpacas (cameloids), potatoes, and minerals. The government competitiveness program (Unidad de Productividad y Competitividad) has identified this region as a potential export area, where three productive clusters are being formed-quinua, cameloids and tourism-and recommended for inclusion in the project. This zone has a total population of roughly 200,000 people, and its index of unsatisfied basic needs (NBI) is 3 1.8%, and electricity coverage is only 3 1.1%. Zone 2 (Valles Mesotermicos de Santa Cruz y Cono Sur de Cochabamba), which includes 20 municipalities and a total population of around 183,000 people, has an NBI of 31.1 % and electricity service coverage of 35.9%. This zone covers the Valles Mesotermicos (1200 to 1800 meters above sea level). Production in this area of fruits and vegetables for the national market (mainly tomatoe and onion) has been on the rise. Zone 2 also includes the Cono Sur de Cochabamba, characterized by the Andean valleys, with a traditionally high production of potatoe, corn, barley and cattle. The ethnicity in both regions is Quechua. (According to the latest census, 90% of the people in the Cochabamba vicinity identified themselves as indigenous). B. Chieck Environmental Classification: B (Partial Assessment) Comments. C Safeguard Policies Triggered Policy Applicability Environmental Assessment (OP/BP/GP 4.01) * Yes O No 3 ISDS Natural Habitats (OP/BP/GP 4.04) 0 Yes 0 No Forestry (OP/GP 4.36) 0 Yes 0 No Pest Management (OP 4.09) O Yes * No Cultural Property (OPN 11.03) 0 Yes * No Indigenous Peoples (OD 4.20) * Yes 0 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 Projects in Disputed Areas (OP/BP/GP 7.60)* 0 Yes * No *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 nol available, describe steps to be taken to obtain necessary data II.D. I a. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts. An environmental assessment of the project has been undertaken, identifying any possible negative environmental effects due to the installation of equipment and other minor works. The assessment has concluded that the probability of negative environmental effects is very small. In fact, the project is expected to have a positive environmental impact due to the use of renewable energy technologies (photovoltaic systems), reducing CO2 emissions. II.D. I b. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. There are no anticipated negative cumulative impacts. II.D. Ic Describe any potential long term impacts due to anticipated future activities in the project area. No negative long-term impact are foreseen. Due to the reduction of CO2 emissions, the project is expected to have a positive environmental impact. The project anticipates receiving additional support through the Community Development Carbon Fund (CDCF), which will buy CO2 emission reductions produced by the project. II.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 Environmental Management Plans (EMPs) for each sub-project will be developed during implementation. The EMPs will follow a prescribed format, including adequate monitoring indicators. Mitigation measures will be included in the contractors' bidding documents and environmental indicators will be monitored by the implementing agencies. The overall impact of the project on greenhouse gas reduction will be monitored as a key output indicator. 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 main direct beneficiaries of the project will be roughly 20,000 rural, low-income households that will be offered electricity service and over 25,000 new cell phone users in rural towns. Farmers, small 4 ISDS businesses, schools, clinics and community centers in the project areas will also be served by the addition of electricity and ICT services and their related applications. Ultimately, the project would benefit the rural population in the rest of the country through replication on a larger scale. Indigenous communities are among the most significant beneficiaries of the project. Almost 80% of the people in the project areas identified themselves as indigenous in the 2001 census. In addition to household electricity, indegenous people will benefit from improved social services in schools, health posts and community centers, as well as from improved communication through ICT. All content and applications developed under the Productive and Social Uses Component, as well as their dissemination and training activities, will be specifically adapted (for language and cultural considerations) to reach indigenous groups. The communities will participate actively in project implementation to ensure that the project effectively responds to the real needs of indigenous people and their communities. 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 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. 5 ISDS F. Disclosure Requiremnents Environmental Assessmnent/Analysis/Management Plan. Expected Actual Date of receipt by the Bank 2/26/2003 Date of "in-country" disclosure 3/7/2003 Date of submission to InfoShop 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 2/26/2003 Date of "in-country" disclosure 3/6/2003 Date of submission to InfoShop 3/6/2003 Pest Managemnent Plan. Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Damn Safety Management 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. Sihned and submitted by Name Date Task Team Leader: Dana Rysankova March 9, 2003 Project Safeguards Specialists 1: Project Safeguards Specialists 2: Project Safeguards Specialists 3: Approved by: Name Date Regional Safeguards Coordinator: Juan D. Quintero March 7, 2003 Sector Manager/Director: Danny M. Leipziger March 7, 2003 For a list of World Bank news releases on projects and reports, click here @l iOrEav 3VTA1111111SM