The World Bank Sint Maarten Emergency Recovery Project I (P167339) Combined Project Information Documents / Integrated Safeguards Datasheet (PID/ISDS) Appraisal Stage | Date Prepared/Updated: 01-Jun-2018 | Report No: PIDISDSA24728 May 01, 2018 Page 1 of 16 The World Bank Sint Maarten Emergency Recovery Project I (P167339) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) St Maarten P167339 Sint Maarten Emergency Recovery Project I Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) LATIN AMERICA AND CARIBBEAN 10-May-2018 07-Jun-2018 Social, Urban, Rural and Resilience Global Practice Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Government of Sint National Recovery Maarten Program Bureau Proposed Development Objective(s) The Project Development Objective (PDO) is to contribute to Sint Maarten’s immediate emergency recovery needs and strengthen institutional capacity to manage resilient recovery and reconstruction. Components Emergency measures for the recovery of disaster first responders and preparedness facilities Restore Utilities Services after Hurricane Irma Housing Repair and Public Buildings Repair and Reconstruction Institutional Support for Reconstruction OPS_TABLE_FCC The processing of this project is applying the policy requirements exceptions for situations of urgent need of assistance or capacity constraints that are outlined in OP 10.00, paragraph 12. Yes PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 55.20 Total Financing 55.20 of which IBRD/IDA 0.00 Financing Gap 0.00 DETAILS -NewFinEnh1 Non-World Bank Group Financing Page 2 of 16 The World Bank Sint Maarten Emergency Recovery Project I (P167339) Trust Funds 55.20 Free-standing Single Purpose Trust Fund 55.20 Environmental Assessment Category B-Partial Assessment Decision The review did authorize the team to appraise and negotiate Other Decision (as needed) B. Introduction and Context Country Context 1. Sint Maarten is a high-income constituent country1 of the Kingdom of the Netherlands in the Caribbean. It occupies the southern half of an island shared with the French overseas collectivity of Saint Martin. It is the most densely populated country in the Caribbean with a population of roughly 40,000 and a per capita Gross Domestic Product (GDP) of $25,3812. Sint Maarten is currently rebuilding from damage of hurricane Irma that has claimed lives and deteriorated socio-economic environment in the island. 2. Sint Maarten is highly vulnerable to natural disasters and adverse climatic events due to its location within the hurricane belt. For the past decades, the country has been exposed to numerous high winds and hurricanes, including notably intense storms; Donna in 1960 (Category 3), Luis in 1995 (Category 4), and Irma 2017 (Category 5). Due to the size of the country, a single storm has the potential to directly impact the entire population. High winds, rainfall and flooding are the principal risk factors while the country is also vulnerable to earthquakes. Coastal areas are exposed to flood risk from storm surge and tsunamis. Increased urbanization along with climate change and limited country capacity to build with resilience adds on vulnerability towards natural hazards. 3. Natural hazards have catastrophic impact on the country’s economy as it is essentially tourism-based. The restaurants, hotels, and other tourism-related sectors, including the wholesale and retail trade, the real estate, renting and business activities sectors account for approximately 45 percent of Sint Maarten’s GDP. Activities in the transport, storage and communication sector, 11 percent of GDP, are also related to the tourism sector. The tourism sector contributed 73 percent to the country’s total foreign exchange income in 2016. The harbor of Sint Maarten is a significant port for cruise tourism in the Caribbean, with 1.7 million cruise passengers visiting per year. The airport is an important hub for regional travel with a large network of connecting flights across the Caribbean. However, the 1Sint Maarten is one of the four constituent countries of the Kingdom of the Netherlands, along with Netherlands, Aruba, and Curacao 2 From Central Bank of Curacao and Sint Maarten, based on 2018 estimates. Page 3 of 16 The World Bank Sint Maarten Emergency Recovery Project I (P167339) tourism industry has not led to high growth in recent years and the economy remains exposed to tourism trends and weather shocks. Urgent Need of Assistance 4. Sint Maarten is in need of urgent assistance after the Hurricane Irma, a category 5+ hurricane that hit the island on September 6, 2017. The winds of more than 185 mph (296km/h) left a trail of devastation on the country. During the landfall, the storm’s eye passed directly through Sint Maarten exposing it to the highest wind velocities in the storm. It was shortly followed by another small-scale hurricane Maria on 19th of September further damaging the country’s infrastructure. The World Bank estimates damages and losses related to Hurricane Irma at US$ 1.38 billion (129.5 percent of GDP) and US$ 976.5 million (91.8 percent of GDP), respectively, affecting 90 percent of all infrastructure and large parts of the natural environment. 5. Reconstruction and recovery needs are greater than currently identified public and private resources. Sint Maarten’s economy is expected to contract 8.5 percent in 2018, following an estimated 4.5 percent contraction in 2017. Growth is projected to rebound in 2019 and the country is expected to return to its pre-hurricane Irma real GDP level by 2025. Private external finance from direct investment, loans, pay-out of insurance claims and funds held abroad will be needed to finance reconstruction of private properties and businesses. Public finances face a sharp decline in tax revenue due to the economic contraction and, at the same time, increased expenditure needs to reconstruct public infrastructure and to assist the affected population. 6. The social and economic effects of Hurricane Irma on poverty levels will be worrisome if no action is immediately taken. In the absence of a poverty line in St. Maarten, in 2015 UNDP estimated a benchmark for poverty based on the minimum income wage. Currently, the minimum wage is Naf 1,530.53 (approximately US$ 850) per month. For 2017, 26.87 percent of households (approximately 3,762 households) had income at or below the minimum wage income level, and thus are classified as poor households. Natural disasters disproportionately affect the poorest and most vulnerable groups. Women in poor households particularly suffer the most the impacts of natural disasters such as water and electricity shortages, as they are intrinsically tied to domestic chores like cooking, cleaning and caring for children and elderly. Women head 38.7 percent of households in Sint Maarten which shows the magnitude of households’ dependence on women income and women’s struggle to lead households post hurricane impacts. 7. Sint Maarten had a low unemployment rate of 6.2 percent, and youth unemployment rate at 25 percent in 2017, but it has significantly risen because of the hurricane and shut down of tourism businesses. The tourism sector suffered from significant damages to the airport, accommodations, and tour operator equipment, dramatically reducing the number of tourist arrivals. Micro, small, and medium-sized enterprises (MSMEs) have experienced significant loss of capital due to the impacts of the hurricane. Households need access to finance to rebuild homes and to fully reengage in economic activities. Fast economic recovery and reconstruction are critically needed to generate revenues and avoid further job loss, and support to stimulate access to finance and business recovery are needed to enable the private sector to grow and contribute to Sint Maarten’s overall economic recovery.. Page 4 of 16 The World Bank Sint Maarten Emergency Recovery Project I (P167339) 8. Sint Maarten has made substantial efforts to address the most urgent needs following Hurricane Irma (e.g. initial debris removal, sheltering roofless populations, governance and business services resumption); nevertheless, recovery needs are massive and the country has limited capacities to manage this scale of resilient reconstruction. To support fast and sustainable recovery, the government of Netherlands has established $470 million Single Donor Trust Fund (SDTF) that the World Bank will manage as Trustee. This SDTF will finance activities for the recovery, reconstruction and resilience building of Sint Maarten. The SDTF will support selected activities from the Government of Sint Maarten’s National Recovery and Resilience Plan (NRRP), which outlines the recovery needs of Sint Maarten. The STDF steering committee composed of one representatives of each the World Bank, the Government of Sint Maarten and the government of the Netherlands, will decide on a consensus basis about short, medium, and long-term recovery projects and required capacity building activities. The Steering Committee will meet biannually and on ad-hoc basis to approve recipient-executed projects and monitor progress of the agreed activities. The SDTF was established on April 16, 2018. However, given the urgent need to start recovery activities prior to the upcoming hurricane season, the government of Sint Maarten, the government of the Netherlands, and the Bank pre-endorsed four recipient-executed projects prior to the establishment of the SDTF. These projects are (1)Sint Maarten Emergency Recovery Project I (P167339), (2) Sint Maarten Emergency Debris Removal and Cash for Works Project (P167347), (3) And Sint Maarten Skills and Training and Strengthening of the Social Projection System Project (P167368) and (4) Sint Maarten Hospital Resiliency & Preparedness Project (P167532) 9. Based on the urgent need of assistance, the Sint Maarten Emergency Recovery Project I is being prepared under the requirements of paragraph 12 of OP 10.00 - on “Projects in Situations of Urgent Need of Assistance or Capacity Constraints�. This is because Sint Maarten is facing a natural disaster which under the policy is defined as “an event that has caused, or is likely imminently to cause a major adverse economic and/or social impact�. The World Bank and Sint Maarten recognize the urgency of initiating emergency reconstruction efforts prior to the start of the next hurricane season in June 2018 and agreed to prepare the proposed operation in an expedited manner. While Sint Maarten has not previously been a client of the World Bank, the Bank is well positioned to support risk assessments, risk reduction, preparedness, financial protection, and resilient recovery and reconstruction. 10. Despite the availability of external grant finance to support the public-sector reconstruction and recovery efforts, Sint Maarten government will have to borrow to finance its remaining budgetary shortfalls projected for 2018 to 2020. The government is working to adopt a medium-term fiscal framework that should set revised targets to the fiscal rule in view of the current exceptional circumstances. An initial scenario in which public sector reconstruction and recovery needs are financed through grants, while remaining budgetary shortfalls are financed through loans, would increase the debt-to-GDP ratio from 34 percent of GDP in 2016 to peak at nearly 50 percent by 2019 before resuming a downward path. 11. Sint Maarten is subject to a rules-based fiscal framework, monitored by a Board for Financial Supervision, which is accompanied by a low-cost “standing subscription� borrowing arrangement with the Netherlands. The framework currently comprises a cap on the interest-to-revenue ratio and a golden rule of borrowing limited to capital expenditures. In view of Sint Maarten’s current low public debt ratios and a low international interest environment, interest payments on public debt given a projected path of additional borrowing needs for 2018-2020 will not surpass the cap on the interest- Page 5 of 16 The World Bank Sint Maarten Emergency Recovery Project I (P167339) to-revenue ratio. However, additional borrowing to finance budgetary shortfalls for 2018-2020 will not be for capital spending and will therefore not be compliant with the golden rule. Appeal to exceptional circumstances to relax the fiscal rule will still require agreement on the size of the deficits financed through borrowing over the next few years. A medium-term fiscal framework, including multi-annual revenue and expenditure projections and operational targets, should provide an outline on the amount of borrowing requirements over the next few years, as well as how to deal with the accumulated debt and debt service in the longer term. Strengthening fiscal management, including budget preparation, implementation and accountability capabilities, is needed to assure adequate implementation of reconstruction and recovery activities as well as fiscal sustainability. Sectoral and Institutional Context 12. The NRRP clearly highlights that immediate priority activities would focus on restoring first responders’ full operational capacity and the emergency repair of critical public buildings, shelters, and housing, solid waste management/debris removal and a large-scale skills and training program targeting economically critical sectors, including the hospitality, construction, and maritime sectors. These priority sectors would support the early recovery and will help prepare Sint Maarten for the next hurricane season and beyond. 13. Full operational capacity of First Responders, including the police, firefighters, and the ambulance service was considerably hindered as their own facilities and specialized equipment were severely damaged or destroyed by the storm. In the aftermath of Hurricane Irma, First Responders’ reduced operational capacity to support the affected populations worsened the evolving crisis, evidencing serious technical capacity and coordination gaps to effectively prepare for and respond to major emergencies. 14. With just two months until the start of the 2018 Atlantic Hurricane Season on June 1, St. Maarten needs to take urgent action to restore and improve its DRM and emergency response capacity to ensure it is ready to respond to the next, potentially catastrophic, extreme meteorological event. In the short term, it is critical to bring the Fire Brigade, which plays a leading role in the country’s DRM structure, back to full operational capacity. Furthermore, reestablishing and strengthening the weather monitoring and forecasting capacity of the National Meteorological Service (MDS) is crucial to ensuring that DRM interventions, aimed at preparing the country for the next hurricane season, can be well-informed with accurate and timely hydro-meteorological forecasts. 15. Repairs of several public buildings, considered critical for government operations, for the provision of lifeline services, and education services, as well as the carrying out of urgent housing repairs, particularly damaged roofs, are extremely urgent. These repairs are needed urgently to ensure the people of St. Maarten are ready to face the next hurricane season. Low income, senior, female- headed, and undocumented households, who are already experiencing chronic high levels of vulnerability, have the least ability to cope with the damages caused by external shocks. Hurricane Irma exacerbated these groups’ fragile socio-economic conditions, thus their needs for immediate assistance are urgent, and such assistance will help them better prepared for the next hurricane season. Page 6 of 16 The World Bank Sint Maarten Emergency Recovery Project I (P167339) 16. Despite the efforts to restore public services after Hurricane Irma, the distribution of electricity and water services provided by the utility company (GEBE) continues to be highly vulnerable to climate variability. In addition to the vulnerability, the situation is exacerbated by the economic shocks post Hurricane Irma that are adversely impacting the utility’s revenues, with average peak load dropping significantly from 57 MW to 35 MW. Although most of the high and low-tension cables are located underground (97 and 84 percent respectively), the remaining electricity networks above-ground are vulnerable to wind and blowing debris. For water services, the situation is more critical as the total average storage capacity of GEBE has been reduced dramatically after Hurricane Irma, falling from a 2.25-day storage capacity to the current level of less than 0.7 average daily demand. After Irma, GEBE started implementing a program to increase its water storage capacity up to 2.7 days, although Sint Maarten’s requirement to cover the average daily demand is a 4-day storage capacity. 17. Since the passage of Hurricane Irma, the GEBE, has focused on emergency restoration of water and electrical infrastructure. During the recovery, GEBE’s investments are also designed to mitigate the utility’s vulnerability to extreme events by strengthening water and electrical power infrastructure. Although some progress has been made, the GEBE’s cash flow and revenue stream have suffered significantly because of the disaster. Cash reserves have been consumed by emergency activities and revenues are down significantly. Power sales are off by more than 30 percent as many hotels are damaged and off line. Restoration of demand is not expected until the first quarter of 2019. The utility’s limitations represent a pressing constraint to completing the rehabilitation of vulnerable and damaged infrastructure and indeed GEBE's operational capacity until revenues are restored. C. Proposed Development Objective Development Objective 18. The Project Development Objective (PDO) is to contribute to Sint Maarten’s immediate emergency recovery needs and strengthen institutional capacity to manage resilient recovery and reconstruction. Key Results 11. The project is expected to benefit the entire population of Sint Maarten of 38,000 people as it aims at reinstating the capacity of Sint Maarten emergency first responders, as well as the full recovery at pre-Irma level of utilities and public services buildings. In addition, up to 500 low-income and vulnerable households are expected to benefit from the housing repair program; and up to 8,000 students will benefit from repaired schools. D. Project Description 16. The Sint Maarten Emergency Recovery Project I is set out to carry out several interventions aimed to address urgent needs resulting from the devastating damages and losses to productive and social sectors, caused by the landfall of Hurricane Irma. 17. St. Maarten’s government identified a series of emergency interventions that need to be immediately Page 7 of 16 The World Bank Sint Maarten Emergency Recovery Project I (P167339) implemented to restore the country to normality as well as a basic level of preparedness to the population for the next hurricane season. These interventions aim to (i) reestablish and improve first responders’ operational capacity and preparedness facilities; (ii) restore full utility services after Hurricane Irma; (iii) repair housing and repair and reconstruct public buildings; and (iv) establish efficient project management and implementation capacity in the government to carry out the implementation of identified priority interventions according to agreed standards for fiduciary, environmental and social management. E. Implementation Institutional and Implementation Arrangements 18. The government is establishing a National Recovery Program Bureau (NRPB) that will be responsible for implementation of this project as well as all other recovery and resilient projects selected by the SDTF’s Steering Committee under the NRRP. The Bureau will carry out technical, administrative, legal, financial and procurement responsibilities and be staffed to lead project implementation. It will have overall responsibility for ensuring compliance with fiduciary agreements, procurement guidelines, social and environmental management, monitoring, reporting and evaluation of processes and results. It will coordinate technical designs of the projects with relevant ministries and conduct consultative and reporting functions. 19. However, before the Bureau is in place, the project implementation responsibility will be carried out by the Interim Recovery Committee (IRC), which was established by the government to implement the emergency recovery projects after the hurricane. Before the IRC is substituted by the NRPB, the IRC will serve as a primary project implementation unit (PIU) for the project. The IRC includes technical, administrative, legal, financial and procurement staff to handle Project implementation. It acts as an overarching project implementation support unit coordinating with and assisting all co- executing ministries/agencies, and reports directly to the Prime Minister and Minister of General Affairs. The WB will provide support and capacity building during Project implementation to the IRC and the NRPB. Project implementation will be carried out in accordance with all the terms and conditions agreed between the Government of Sint Maarten and the World Bank as set forth in the Grant Agreement. 20. The co-executing ministries/agencies will be responsible for the implementation of specific activities. The project leaders for each specific activity benefitting a ministry/agency will sit in the said ministry/agency. Nevertheless, procurement of equipment, goods and services will be conducted by the IRC with technical inputs from MGA (fire station and the police station); TEATT (Hydro- meteorological office); GEBE (utility - water and electricity); Ministry of Public Housing, Environment, Spatial Development and Infrastructure – VROMI (private house roof repairs and public buildings); and SMHDF (social housing repairs). The majority of the civil works will be jointly carried out by VROMI and the IRC. VROMI will be responsible for the technical design and supervision aspects of the works while the fiduciary and safeguards requirements will be overseen by the IRC (and the NRPB once set up). As such, VROMI and the IRC will together undertake the repairs of the public buildings including the fire station, police station, shelters and schools. VROMI employs a modest engineering staff and will need the support of a consulting firm (including engineering design and supervision consultants) to implement a project of this magnitude. Page 8 of 16 The World Bank Sint Maarten Emergency Recovery Project I (P167339) 21. There will be a significant demand on Bank support to assist with project management and implementation. The agencies within the Government of St. Maarten are unfamiliar with Bank operations and procedures. Additionally, the demands of the recovery program are diverse and considerably greater than what the pre-hurricane levels government agencies were designed to manage. Early support from the Bank is essential to develop an effective IRC and NRPB. . F. Project location and Salient physical characteristics relevant to the safeguard analysis (if known) Sint Maarten is a high-income constituent country of the Kingdom of the Netherlands in the Caribbean, with a population of roughly 38,000. It occupies the southern half of an island shared with the French overseas collectivity of Saint Martin. Sint Maarten’s per-capita GDP is among the highest in the Caribbean . However, the country remains vulnerable to extreme natural hazard shocks that harm the economy and social welfare. For the past decade, the country has experienced slow growth. Sint Maarten is a small and open economy that is essentially tourism-based. Sint Maarten is highly vulnerable to natural disasters and adverse climatic events due to its location within the hurricane belt, high-intensity weather events such as high wind and hurricanes have strong negative impacts on living conditions, infrastructure and economic activity. Since 1960, St. Maarten has been exposed to nine hurricanes whose track has passed within 40 kilometers of the country. The social and economic effects of Hurricane Irma on poverty levels will be worrisome if no action is immediately taken. Natural disasters have impacts on income that especially affect these households’ ability to meet basic needs. Unemployment has risen as a result of the hurricane, especially among the youth. This Emergency Recovery Project addresses needs for immediate recovery and reconstruction, through restoration of housing, public buildings, and utility infrastructure, as well as strengthening future resilience by building back better, bringing emergency services to improved capacity, and supporting institutions that will be able to handle future disasters competently. G. Environmental and Social Safeguards Specialists on the Team Gibwa A. Kajubi, Social Safeguards Specialist Gunars H. Platais, Environmental Safeguards Specialist SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) This policy is triggered to ensure adequate Environmental Assessment OP/BP 4.01 Yes environmental management of the reconstruction Page 9 of 16 The World Bank Sint Maarten Emergency Recovery Project I (P167339) works that will be undertaken. Project activities are in general expected to be relatively minor, and no negative large, significant or irreversible environmental impacts are anticipated. Overall, the proposed Project promotes environmental sustainability in the DRM sector by establishing appropriate practices within existing institutions, assures that risk reduction works are implemented in a sustainable manner, contemplates potential works on environmental restoration and prevents further environmental degradation. Since the exact locations and specific list of works is still unknown, an ESMF will be prepared as the proper safeguard instrument. The ESMF will lay out the procedures and responsibilities for screening the activities proposed under Components 1, 2, and 3 in order to (i) ensure that the proposed activities are eligible for Bank financing, and (ii) determine what, if any, further environmental and social analyses and instruments will be required before the activity can be implemented This is a government led program and therefore will Performance Standards for Private Sector No not trigger OP 4.03 on Performance Standards for Activities OP/BP 4.03 Private Sector Activities. This policy is not triggered as the activities are focused on existing infrastructure and do not involve Natural Habitats OP/BP 4.04 No natural habitats. This policy is not triggered because Project activities Forests OP/BP 4.36 No will not be conducted in forest areas. This policy is not triggered because Project activities will not involve purchase, use or storage of Pest Management OP 4.09 No pesticides and will not support the procurement or use of, or lead to the increased use of, other agricultural chemicals. This policy is triggered since the Project involves small structural works. These works might take place in locations that have not already been screened for physical cultural resources. The country's laws and Physical Cultural Resources OP/BP 4.11 Yes procedures regarding physical cultural resources will be applied for addressing potential “chance finds� encountered during construction, and related procedures to be followed will be reflected in the ESMF and the Operational Manual. Finally, the May 01, 2018 Page 10 of 16 The World Bank Sint Maarten Emergency Recovery Project I (P167339) negative list will include screening procedures to ensure that no works will affect known cultural sites. This policy is not triggered as there are no groups Indigenous Peoples OP/BP 4.10 No that meet the criteria of the OP/BP 4.11 Indigenous peoples on the island. The project investments for civil works in Sint Maarten focus on rehabilitating and/or strengthening institutions providing critical public services, including: (a)provision of emergency vehicles for fire, ambulance and police, (b) rehabilitating critical buildings to restore critical services (police, fire, schools, community centers, clinics); (c) restoring public (restoring electrical cables and power lines); and (d) improving responses to immediate and future emergencies (hydro met). In some cases, the sites are yet to be identified. As the project investments could have impacts that result in temporary involuntary Involuntary Resettlement OP/BP 4.12 Yes resettlement and/or land acquisition, OP 4.12 Involuntary Resettlement will be triggered. As a result, an ESMF and an RPF are being prepared to provide guidance on the preparation of ARAPs should they be required. All safeguards documents will be consulted upon and disclosed prior to the start of works. To ensure implementation of social safeguards, the Government has prepared Terms of Reference to hire a firm to prepare the ESMF and RPF and has designated an Environment Specialist and a Social Development Specialist to oversee the safeguards. The World Bank will provide Training to the PIMU on the Bank social safeguard requirements as well as on the draft safeguard instruments. This policy is not triggered because Project activities Safety of Dams OP/BP 4.37 No will not involve construction of dams or depend on existing dams. This policy is not triggered because Project activities Projects on International Waterways No will not be conducted in or influence international OP/BP 7.50 waterways. This policy is not triggered because Project activities Projects in Disputed Areas OP/BP 7.60 No will not be conducted in disputed areas. May 01, 2018 Page 11 of 16 The World Bank Sint Maarten Emergency Recovery Project I (P167339) 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: The project will address reconstruction of key infrastructure (emergency response buildings, shelters, water storage) and roof reconstruction of the poorest and most vulnerable population. These activities are not expected to cause large, irreversible environmental impacts. The key social issues that have been identified include: (i) the management of labor (demolition and construction workers, specialists in debris removal) coming from outside Sint Maarten, both from the perspective of health and safety in the workplace, fair practice, accommodation, and community health and safety, (ii) the possibility of some, relatively small-scale involuntary resettlement, and (iii) potential impacts on physical cultural heritage. Labor Influx impacts associated with the project financed activities will be assessed in the Environmental and Social Management Framework (ESMF) and appropriate mitigation measures will be included. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: Project activities will most likely be relatively minor and no negative, significant or irreversible environmental impacts are expected. On the contrary, the Project will support environmental sustainability in the DRM sector by strengthening appropriate practices within existing institutions for disaster preparedness and strengthen communities’ resilience to natural disasters. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. N/A 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. The National Emergency Recovery Program is to be over seen by the Interim Recovery Committee (IRC) which will be superseded by the National Recovery Program Bureau (NRPB) once it is set up. the Interim Recovery Committee (IRC)/NRPB will oversee the development and implementation of all emergency and subsequent projects in Sint Maarten financed by the Bank and other donors. Each sub-project will have a PIU which has implementation responsibility and will include Social and Environment Safeguards specialists responsible for the preparation and implementation of the safeguards. The NRPB will be staffed with international safeguards specialist to advise the PIU social and environmental staff. The Government of Sint Maarten is in the process of contracting an international firm to prepare a National Environmental and Social Management Framework (ESMF) for all the Bank financed projects of the Sint Maarten Hurricane Irma Reconstruction, Recovery and Resilience program under the guidance of the Head of the Interim Recovery Committee/National Recovery Program. The ESMF at the program level will be serve as guidelines for the development of project specific safeguards instruments, including Environmental Management Plans (EMPs), Abbreviated Ressettlemnt Action Plans and other safeguard plans as required. May 01, 2018 Page 12 of 16 The World Bank Sint Maarten Emergency Recovery Project I (P167339) The risk for institutional capacity for implementation and sustainability is high. This is because: (a) country capacity has been constrained in general by the hurricane damage; (b) this is the first World Bank engagement in the country so the counterparts know little of Bank requirements the Bank needs to gain familiarity with the government and local systems; and (c) the recovery program needs to be implemented rapidly, initially by an interim agency and subsequently by a new agency. The Bank will provide the necessary implementation support, including by bringing in international expertise where relevant, providing hands on guidance and training and ensuring adequate resources to support project implementation and capacity building. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. A Social Assessment (SA) will be carried out to analyze project related issues (key infrastructure, DRM, roof reconstruction), identify possible social risks and impacts, and identify and characterize key stakeholders. The Social Assessment will collect primary data through interviews with key stakeholders, and focus group discussions with male and female representatives of relevant agencies. B. Disclosure Requirements OPS_EA_SG_DEFERRED_FCC_TABLE The review of this Safeguards has been Deferred. Comments A Safeguards Action Plan has been prepared indicating the way forward. An ESMF and RPF will be prepared. TORs have been prepared and a call for expressions of interest has been initiated. OPS_RA_SG _DEFERRED_FCC_TABLE The review of this Safeguards has been Deferred. Comments A Safeguards Action Plan has been prepared indicating the way forward. An ESMF and RPF will be prepared. TORs have been prepared and a call for expressions of interest has been initiated. C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OPS_EA_COMP_TABLE 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 Practice Manager (PM) review and approve the EA report? NA Are the cost and the accountabilities for the EMP incorporated in the credit/loan? May 01, 2018 Page 13 of 16 The World Bank Sint Maarten Emergency Recovery Project I (P167339) Yes OPS_ PCR_COM P_TABLE OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? NA Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on cultural property? Yes OPS_IR_ COMP_TAB LE OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? NA If yes, then did the Regional unit responsible for safeguards or Practice Manager review the plan? NA OPS_ PDI_ COMP_TAB LE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for disclosure? NA 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? NA 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 CONTACT POINT May 01, 2018 Page 14 of 16 The World Bank Sint Maarten Emergency Recovery Project I (P167339) World Bank Doekle Geert Wielinga Senior Disaster Risk Management Specialist Eduardo Ereno Blanchet Disaster Risk Management Specialist Borrower/Client/Recipient Government of Sint Maarten Abel Knottnerus Treaty Lawyer Abel.Knottnerus@sintmaartengov.org Leona Romeo Marlin Prime Minister Leona.Marlin-Romeo@sintmaartengov.org Implementing Agencies National Recovery Program Bureau Leona Romeo Marlin Prime Minister Leona.Marlin-Romeo@sintmaartengov.org FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Doekle Geert Wielinga Task Team Leader(s): Eduardo Ereno Blanchet May 01, 2018 Page 15 of 16 The World Bank Sint Maarten Emergency Recovery Project I (P167339) Approved By Safeguards Advisor: Practice Manager/Manager: Ming Zhang 31-May-2018 Country Director: Galina Y. Sotirova 01-Jun-2018 May 01, 2018 Page 16 of 16