Mozambique - ProMaputo, Maputo Municipal Development Program

Page 1 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 11/01/2006 Report No.: AC2097 1. Basic Project Data Country: Mozambique Project ID: P096332 Project Name: ProMaputo, Maputo Municipal Development Program Task Team Leader: Katherine Kuper Estimated Appraisal Date: November 20, 2006 Estimated Board Date: January 25, 2007 Managing Unit: AFTU1 Lending Instrument: Adaptable Program Loan Sector: Sub-national government administration (46%);Solid waste management (29%);Roads and highways (25%) Theme: Municipal governance and institution building (P) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): 30.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 14.45 14.45 Environmental Category: B - Partial Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [ ] 2. Project Objectives The Phase 1 Objective is to strengthen the Maputo City Council's institutional and financial capacity to support achievement of long term service delivery goals, and improve solid waste management. 3. Project Description The project is financed by an Adaptable Program Loan with a first phase of three years and a second phase of five years with clear and agreed triggers for moving to Phase II. Phase I (three years; US$ 44.5 Million of which US$30 million in IDA) will focus on: - institutional development and municipal governance - municipal finance reforms in both revenues and expenditures - low cost, quick win infrastructure and service delivery improvements - planning for Phase II larger infrastructure and service delivery investments Phase II (five years, US$80 million in IDA) will focus on: - consolidation of Phase I institutional and financial reforms by the subsequently elected municipal assembly and mayor Page 2 - investment in infrastructure and service delivery improvements on a larger scale subject to financial viability (especially sustainability) and funds leveraged - greater involvement of non-IDA financing (private sector, ADB, bilaterals etc.) due to lower risk The outcome indicators for Phase II will be determined during the third year of phase I, since projections on service delivery needs will be done based on the census of 2007. It is also expected that if Phase I produces the anticipated institutional and financial reforms, there will be greater interest of other lenders and the private sector to add resources, thus providing greater potential to expand services. Phase I: Maputo Institutional and Financial Reform Component A. Institutional Development and Municipal Governance (approx. $8 million) Sub-component A.1: Institutional Reform and Strengthening The objective of this subcomponent is to enable CMM processes and structures to effectively face the challenges of municipal development. It entails six specific objectives: (a) to simplify CMM organization and management; (b) to implement strategic human resource management; (c) to improve the performance of support systems and service delivery; (d) to decentralize and integrate planning and management of CMM programs; (e) to decentralize and integrate planning and management of CMM programs; and (f) to ensure adequate material recourses for CMM operations through procurement, allocation, and maintenance of municipal buildings, vehicles and office equipment. Sub-component A.2: Improved Municipal Governance The objective of this subcomponent is to improve CMM transparency and responsiveness by increasing the involvement of various stakeholders in municipal governance. It entails five specific objectives: (a) to increase the transparency of resource management and improve CMM communication with internal and external; (b) to improve the interaction between the CMM and the Municipal Assembly; (c) to improve coordination between CMM and other public sector actors; (d) to increase the number and effectiveness of partnerships between CMM and nongovernmental actors; and (e) to increase the number and effectiveness of partnerships between CMM and nongovernmental. Component B. Municipal Finance (approx. $5.5 million) Sub-component B.1. Revenues The objective of this sub-component is to increase municipal revenues by enhancing the capacity of the municipality to better utilize its own revenue sources. It entails five specific objectives: (a) an intermediate solution to improve the current systems of taxes and fees in the short term; (b) a medium and long term solution to improve the systems of Page 3 taxes and fees; (c) to improve the internal management of the different fees; (d) to improve the capacity to attract additional revenues; and (d) to provide general support to improve the municipal revenue system. Sub-component B.2. Financial and Asset Management The objective of this sub-component is to improve the Municipality's planning, execution, and control of budgetary functions and systems. To do so, the following six specific objectives will be pursued: (a) to improve the process of budgetary planning, in order to ensure that the different units submit their budget plans in a timely and accurate fashion; (b) to improve the distribution of financial resources, in order to ensure that budgets are executed according to the plans; (c) to improve the financial, procurement, and management systems; (d) to improve the budgetary execution and control systems; (e) to support the implementation of the national budgetary system-SISTAFE; and (f) to provide general support to improve the municipal expenditure system. Component C. Planning, Infrastructure Rehabilitation and Service Delivery Improvements (approx. $26.5 million) This component will support urban planning and targeted investments to improve critical urban services. It is divided into two subcomponents: Sub-Component C1 - Planning and Management of Urban Space This sub-component will provide support to the municipality to improve the efficacy of the management and the planning of services through the development of Spatial and Sectoral Plans and the implementation of a Geographic Information System (GIS). It will provide the municipality with the methodological tools, training, technical assistance and mentoring to undertake planning. It will also review the tasks that are needed to improve the management of urban space, assist in the approval of infrastructure plans, develop spatial and sectoral plans, as well as the restructuring of the processes and procedures related to the granting of land use rights and land ownership, and the implementation of an information system for these purposes. It entails two specific objectives: (a) to improve the management of urban space; and (b) to improve the design and quality of municipal services. Sub-Component C2 - Infrastructure Rehabilitation and Service Delivery Improvements The objective of the sub-component is to increase the availability and the quality of infrastructure and equipment to improve service delivery through an adequate management of investments to show tangible improvements. The sub-component will include the following results and associated activities: (a) Rehabilitation of existing paved and unpaved roads & associated drainage, and establish conditions for future expansion; (b) increase the quality and coverage of solid waste management services through improvements in the CMM's internal SWM operations as well as partnerships with the private and non-government sector; (c) improve the quality of cemeteries provided by municipalities; and (d) increase public safety through increased street lighting. Page 4 4. Project Location and salient physical characteristics relevant to the safeguard analysis During Phase I the project will exclusively cover the municipality of Maputo in Mozambique, which has an area of approximately 300km2 and a population of 1.3 million. 5. Environmental and Social Safeguards Specialists Mr Serigne Omar Fye (AFTS1) 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: Phase I of the project has small investments in service delivery and (drainage, road rehabilitation, solid waste management, cemeteries and lighting) triggers Bank's Safeguards Policies OP 4.01 and OP 4.12 respectively and Phase II will also trigger same policies even though the investments will be larger. The environmental classification of the proposed project is Category B and as a result, an Environmental and Social Management Framework (ESMF) and a Resettlement Policy Framework (RPF) were prepared and disclosed in country and at the InfoShop on October 27, 2006. These documents are to (i) assess the environmental and social impacts of the expected subprojects; (ii) outline environmental management procedures and provide the requisite tools, including a screening process with sub-project assessment forms and guidelines for mitigating impacts; and (iii) integrate environmental considerations into each phase of the sub-project cycle. Apart from the formal disclosure, the contents of these documents will be disseminated in Maputo through a series of stakeholder workshops and both frameworks and their screening processes will be integrated into the Operational Manual of the project. Page 5 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: As the program activities are small, the project does not foresee any long term or irreversible environmental damage caused by these activities. In any case precausive measures are taken through the preparation of the framework documents which will screen every sub- project on their social and environmental merits to ascertain that any indirect impact will be appropriately captured and addressed in a timely fashion. 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. The project will be managed within the Municipal Council of Maputo (CMM). This is not the first time that the CMM manages funds from a World Bank project. Maputo is one of the eight pilot municipalities under the Municipal Development Program (MDP), and as such is familiar with World Bank safeguards policies. However, weak capacity was recognized as an obstacle to ensuring implementation of the safeguards recommendations under MDP. For this reason, and to build the institutional and human resources capacity for environmental management at the level of the Municipality, the CMM has identified a person responsible for environmental safeguards. With assistance from the World Bank safeguards specialist, the CMM contracted consultants under the PPF to prepare the ESMF and RPF that were disclosed in-country on 21 October and in InfoShop on 24 October. Further revisions may be necessary during implementation, particularly as larger infrastructure projects will need specific studies to be conducted for phase II. The objective of the program is to build the City's institutional capacity to undertake various functions over the long term, including environmental safeguards. The Capacity Building required for environmental management is part of the bigger capacity building framework, which will be funded by the project. As indicated below, a budget will be set aside to honor the Memorandum of Understanding (MOU) signed between MICOA and the Municipality of Maputo to ensure their participation in the implementation of the ESMF and to also ensure that the required institutional and human resources capacities are built for sustainable environmental management of the City of Maputo. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Intra- and interdepartmental coordination will be overseen by the GDEI. The GDEI will also be responsible for ensuring compliance concerning public consultation and disclosure. A local communication strategy stressing awareness-raising activities about the program and resettlement procedures and entitlements should be carried out throughout preparation and implementation of resettlement in order to promote dialogue and to reduce misunderstandings and grievances. Communities will be involved in awareness-raising and training concerning their rights and obligations; how to obtain legal advice and representation, and how to seek redress against what they regard as Page 6 unfair practices. Training for technical personnel from the CMM, the district CC Resettlement Working Group members and local leaders in conflict management can assist in minimizing the negative impact of conflicts. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Date of receipt by the Bank 10/15/2006 Date of "in-country" disclosure 10/21/2006 Date of submission to InfoShop 10/27/2006 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Date of receipt by the Bank 10/15/2006 Date of "in-country" disclosure 10/21/2006 Date of submission to InfoShop 10/27/2006 * 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? No If yes, then did the Regional Environment Unit or Sector Manager (SM) review and approve the EA report? N/A Are the cost and the accountabilities for the EMP incorporated in the credit/loan? N/A 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 Page 7 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 D. Approvals Signed and submitted by: Name Date Task Team Leader: Ms Katherine Kuper 11/01/2006 Environmental Specialist: Mr Serigne Omar Fye 11/01/2006 Social Development Specialist Mr Serigne Omar Fye 11/01/2006 Additional Environmental and/or Social Development Specialist(s): Approved by: Sector Manager: Mr Jaime M. Biderman 11/01/2006 Comments: