Turkey - Municipal Services Project

INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 04/25/2005 Report No.: AC1122 1. Project Statistics Country: Turkey Project ID: P081880 Project Name: Municipal Services Project Task Team Leader: Sudipto Sarkar Estimated Appraisal Date: February 7, Estimated Board Date: June 23, 2005 2005 Managing Unit: ECSIE Lending Instrument: Specific Investment Loan Sector: General water, sanitation and flood protection sector (70%);Sub-national government administration (30%) Theme: Municipal finance (P);Other urban development (P) IBRD Amount (US$m.): 275.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER 2.40 MUNICIPALITIES OF BORROWING COUNTRY 27.80 30.20 Environmental Category: F - Financial Intermediary Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [X] 2. Project Objectives The objective of the project is to support sustainable environmental services in selected municipalities. This objective will be met through: (a) development of municipal infrastructure; (b) strengthening the financial position and operational efficiency of the selected municipalities and municipal utilities; and (c) institutional strengthening of IB. The municipalities that have been proposed by Iller Bank (IB) to be included in the project are: Antalya, Bergama, Cankiri, Gumusova-Duzce, Elbistan, Erzurum, Gelibolu, Ilica, Kutahya, Mersin, Mugla, Odemis, Polatli, Samsun, and Serik. These municipalities were proposed based on a demand survey. The State Planning Organization and Treasury were consulted by Iller Bank on preparing the list of proposed municipalities which have to meet the project's Sub-Borrower and Sub-Project eligibility criteria to receive financing under the Bank loan. No new municipalities will join the project without prior approval of the Bank. 3. Project Description The project has the following three components:  * Component 1: Municipal Development (US$ 277.8 million) - Eligible expenditures under this category would be for the water, wastewater, and solid waste sectors. From the above proposed project sites, investment are being defined through feasibility studies. IB will carry out the due diligence on appraising each sub-project and will also be responsible for supervision. The expenditures will be financed by the Bank loan and municipalities; * Component 2: Municipal Technical Assistance (US$ 20 million) - Eligible expenditures under this category will be for municipalities for the following purposes: (a) feasibility studies; (b) urban planning; (c) preparation of design and bidding documents; (d) operational improvement plan related to institutional, technical and financial matters, including financial risk management; and (e) construction supervision. The expenditures will be financed by the Bank loan; and * Component 3: Iller Bank Institutional Strengthening (US$ 6 million) - Eligible expenditures under this category will include technical assistance to Iller Bank so that it is able to implement the project in a satisfactory manner. Eligible expenditures under this category will be: (a) increasing financial and banking capacity; (b) increasing technical capacity; (c) incremental operating costs; and (d) audits. The expenditures will be financed from IB's own resources and the Bank loan. 4. Project Location and salient physical characteristics relevant to the safeguard analysis The project sites are located throughout the country. Given that the project is related to water and wastewater investments, the project design ensures that the Bank?s policy on International Waterways will be addressed. 5. Environmental and Social Specialists on the Team Mr Norval Stanley Peabody (ECSSD) Ms Ruxandra Maria Floroiu (ECSIE) 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 Cultural Property (OPN 11.03) X Indigenous Peoples (OD 4.20) 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: The project potentially triggers the Bank's policies on Environmental Assessment and Involuntary Resettlement. To this end, an Environmental Framework Agreement and a Land Acquisition Framework Agreement were cleared by the Bank and sent to the Bank's InfoShop. These frameworks are also available on Iller Bank's external site in the Turkish language. On International Waterways, for Sub-Projects on trans-boundary waters, investments should be for ongoing schemes, involving additions or alterations that require rehabilitation, construction, or other changes that (i) will not adversely change the quality or quantity of water flows to the other riparians; and (ii) will not be adversely affected by the other riparians'possible water use. This applies only to minor additions or alterations to the ongoing scheme; it does not cover works and activities that would exceed the original scheme, change its nature, or so alter or expand its scope and extent as to make it appear a new or different scheme. From the Sub-Projects identified so far this will apply only for Erzurum which is located on trans-boundary waters where the proposed investment is only for rehabilitation of the water network. All other Sub-Project sites are either located adjacent to the Mediterranean or Black Seas or on national rivers that discharge to these seas. For these Sub-Project sites, OP 7.50 does not apply. Rather, the project design is required to conform with Turkey's commitments under the various conventions applicable to these seas to which Turkey is a signatory. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: There are no long term negative impacts expected due to the project. 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 Borrower has prepared the Environmental Framework Agreement and Land Acquisition Framework Agreement to address safeguard concerns. The Borrower has adequate capacity to implement these frameworks. The Bank will review and clear all category A sub-projects and selectively review and clear category B sub-projects. Construction contracts will have provisions to ensure compliance with Turkish environmental regulations, consistent with the Environmental Framework Agreement.  5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The stakeholders of the project are the relevant ministries, Iller Bank, and municipalities. The Environmental Framework was discussed on December 21, 2004 with Ministry of Environment and Forests, State Planning Organization, Polatli municipality, and Union of Municipalities. The Land Acquisition Framework was discussed on January 1, 2005 with the Ministry of Public Works and Settlement, Ministry of Finance, State Planning Organization, Cankiri municipality, and the Union of Municipalities. The frameworks were posted in Iller Bank?s web-site in January 2005 to seek comments from the public. The exact nature of the Sub-Projects will emerge after the feasibility study is completed and as per the above frameworks, the public will have the opportunity to comment on the investments and information on the project will be made publicly available. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Date of receipt by the Bank 12/21/2004 Date of "in-country" disclosure 12/21/2004 Date of submission to InfoShop 01/24/2005 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 01/01/2005 Date of "in-country" disclosure 01/01/2005 Date of submission to InfoShop 03/22/2005 * If the project triggers the Pest Management, Cultural Property and/or the Safety of Dams policies, 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: Does not apply 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? Yes If yes, then did the Regional Environment Unit review and approve the EA Yes report? Are the cost and the accountabilities for the EMP incorporated in the Yes credit/loan? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan, abbreviated plan, or process framework (as Yes  appropriate) been prepared? If yes, then did the Regional Social Development Unit review and approve Yes the plan / policy framework / policy process? OP 7.50 - Projects on International Waterways Have the other riparians been notified of the project? No If the project falls under one of the exceptions to the notification Yes requirement, has this been cleared with the Legal Department, and the memo to the RVP prepared and sent? What are the reasons for the exception? Please explain: Yes Has the RVP approved such an exception? Yes BP 17.50 - Public Disclosure Have relevant safeguard policies documents been sent to the World Bank's Yes Infoshop? Have relevant documents been disclosed in-country in a public place in a Yes form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities Yes been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project Yes cost? Does the Monitoring and Evaluation system of the project include the Yes monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the Yes borrower and the same been adequately reflected in the project legal documents? D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Sudipto Sarkar 04/12/2005 Environmental Specialist: Ms Ruxandra Maria Floroiu 03/23/2005 Social Development Specialist Mr Norval Stanley Peabody 02/25/2005 Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Mr Ronald N. Hoffer 04/14/2005 Comments: Sector Manager: Mr Sumter Lee Travers 04/15/2005 Comments: