Project Information Document (Appraisal Stage) - Regional Disaster Vulnerability Reduction Project (Additional Finance) - P149259

PROJECT INFORMATION DOCUMENT (PID) ADDITIONAL FINANCING Report No.: PIDA18608 Project Name Regional Disaster Vulnerability Reduction Project (Additional Finance) (P149259) Parent Project Name Regional Disaster Vulnerability Reduction APL1 - Grenada and St. Vincent and the Grenadines (P117871) Region LATIN AMERICA AND CARIBBEAN Country Grenada Sector(s) Forestry (40%), Flood protection (40%), Urban Transport (20%) Theme(s) Climate change (60%), Natural disaster management (20%), Other urban development (15%), Land administration and management (5%) Lending Instrument Investment Project Financing Project ID P149259 Parent Project ID P117871 Borrower(s) Ministry of Finance Grenada Implementing Agency Ministry of Finance, Planning, Economic Development, Trade, Energy & Cooperatives Environmental Category B-Partial Assessment Date PID Prepared/Updated 29-Jan-2015 Date PID Approved/Disclosed 30-Jan-2015 Estimated Date of Appraisal 06-Feb-2015 Completion Estimated Date of Board 30-Apr-2015 Approval Decision I. Project Context Country Context Grenada is exposed to meteorological (high wind/excess rainfall/hurricanes and drought) and geophysical (seismic/volcanic/tsunami) hazards, causing a high risk to its economic stability. These hazards often result in significant and recurrent damages to national infrastructure including housing, transport and telecommunication networks, schools, hospitals as well as water and electrical services. As is the case with most island states, a single hazard event can impact the entire population and economy of Grenada due to its small population and limited geographical area. For example, Hurricane Ivan (2004) resulted in national losses exceeding 200 percent of Grenada’s annual GDP. Damages to government facilities virtually paralyzed the government and some 97 percent of Grenada’s schools [74 out of 76] as well as 2/3 of the housing stock were either damaged or completely destroyed. Page 1 of 4  Sectoral and institutional Context The proposed AF would significantly contribute to the implementation of the Grenada’s Strategic Program for Climate Resilience (SPCR) dated March 2, 2011. More specifically, it directly contributes to four of the five SPCR expected outcomes, namely: (i) improved resilience of infrastructure; (ii) restored and improved forestry resources; (iii) improved government capacity for assessment and management of Grenada’s water supply; and (iv) improved use of data and geospatial analysis for climate change adaptation. Additionally, the activities proposed under the AF are closely linked with the objectives of the Grenada National Strategic Development Plan (2007-2017) . Furthermore, increasing capacity to manage risk from natural hazards and climate change is a core outcome of the Organization of Eastern Caribbean States (OECS) Regional Partnership Strategy (RPS) FY15-FY19. It directly contributes to one of the three areas of engagement (“Resilience”) and, ultimately, to the overall strategic goal of supporting the OECS in laying foundations for sustainable inclusive growth. Grenada uses the RDVRP is one of its principle financial vehicles to deliver on its overall climate resilience goals. In order to minimize transaction costs on the Government, and to address climate resilience in a comprehensive and integrated manner in Grenada, the additional PPCR financing will be channeled as an AF to the RDVRP. II. Proposed Development Objectives A. Current Project Development Objectives – Parent The Program aims at measurably reducing vulnerability to natural hazards and climate change impacts in the Eastern Caribbean Sub-region. The objective of the Project in Grenada is to measurably reduce vulnerability to natural hazards and climate change impacts in Grenada and in the Eastern Caribbean Sub-region. The objective of the Project in Saint Vincent and the Grenadines is to measurably reduce vulnerability to natural hazards and climate change impacts in Saint Vincent and the Grenadines and in the Eastern Caribbean Sub-region. The achievement of the Program Development Objectives of the Regional Disaster Vulnerability Reduction Program (RDVRP) would be measured using the following key indicators: (a) Reduced risk of OECS population to failure of public buildings and infrastructure due to natural hazards or climate change impacts; and (b) Increased capacity of OECS Governments to identify and monitor climate risk and impacts. III. Project Description Component Name Prevention and Adaptation Investments Comments (optional) The proposed AF would permit the completion of priority investments for flood protection and improved drainage in urban areas. Component Name Regional Platforms for Hazard and Risk Evaluation, and Applications for Improved decision making Comments (optional) This component finances critical building blocks to Grenada’s technical and institutional capacity to manage climate resilience in forest and water resource management departments, with additional Page 2 of 4  applications for Ministry of Works, the National Disaster Management Agency (NADMA) and the National Planning Office, which could contribute to a transformative impact on Grenada’s capacity to build climate resilience. Component Name Project Management and Implementation Support Comments (optional) The AF would support strengthening the institutional capacity for project management and coordination of SPCR implementation. This will be accomplished through the provision of technical advisory services, training, operating costs and acquisition of goods. IV. Financing (in USD Million) Total Project Cost: 8.80 Total Bank Financing: 0.00 Financing Gap: 0.00 For Loans/Credits/Others Amount BORROWER/RECIPIENT 0.00 International Development Association (IDA) 0.00 Strategic Climate Fund Credit 3.80 Strategic Climate Fund Grant 5.00 Total 8.80 V. Implementation The AF implementation, institutional and internal quality control arrangements would remain the same as the arrangements established under the RDVRP. The additional activities under the AF are within Grenada’s current capacity to execute. The Project Coordination Unit is reasonably staffed and targeted training has facilitated capacity development to manage Bank-supported projects. The Social Specialist and Engineer will supervise safeguards for most activities, particularly for spot field inspections during construction. An external environmental consultant will be contracted to provide support for specialized tasks and for more frequent inspection of intensive construction efforts. The Operations Manual will be updated to reference the new Environmental Management Framework. The proposed AF would also scale up technical assistance provided under the RDVRP to support improved project management capacity and financial management systems. Additionally, a project Steering Committee oversees the implementation and coordination of the RDVRP, will also support the execution of the AF activities as well as monitor its implementation. The Grenada National Climate Change Committee (NCCC) was reactivated in July 2014 with support from GIZ and will be meeting with frequency; this is invaluable for ensuring long term climate planning in the country and the transformational success of the RDVRP in regards to disaster risk and climate adaptation. VI. Safeguard Policies (including public consultation) Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 ✖ Natural Habitats OP/BP 4.04 ✖ Forests OP/BP 4.36 ✖ Page 3 of 4  Pest Management OP 4.09 ✖ Physical Cultural Resources OP/BP 4.11 ✖ Indigenous Peoples OP/BP 4.10 ✖ Involuntary Resettlement OP/BP 4.12 ✖ Safety of Dams OP/BP 4.37 ✖ Projects on International Waterways OP/BP 7.50 ✖ Projects in Disputed Areas OP/BP 7.60 ✖ Comments (optional) VII. Contact point World Bank Contact: Gaetano Vivo Title: Disaster Risk Management Speci Tel: 473-2448 Email: gvivo@worldbank.org Borrower/Client/Recipient Name: Ministry of Finance Grenada Contact: Mr. Timothy Antoine Title: Permanent Secretary Tel: 473-440-6843 Email: timothy.antoine@gov.gd Implementing Agencies Name: Ministry of Finance, Planning, Economic Development, Trade, Energy & Cooperatives Contact: Mr. Timothy Antoine Title: Permanent Secretary Tel: 473-440-6843 Email: timothy.antoine@gov.gd VIII. For more information contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-4500 Fax: (202) 522-1500 Web: http://www.worldbank.org/infoshop Page 4 of 4