Conformed Copy - L3973 - Urban Environmental Management Project - Supplemental Letter

Page 1 REPUBLIC OF COLOMBIA March 26, 1996 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 U.S.A. Re: Loan 3973-CO (Urban Environmental Management Project) Section 3.01 of, and Part A.2 (b) of Schedule 2 to, the Loan Agreement Dear Sirs: 1. This is in connection with the Loan Agreement for the above Project, of even date herewith (the Loan Agreement), between Republic of Colombia (the Borrower) and International Bank for Reconstruction and Development (the Bank), and, more specifically, in connection with Section 3.01(a) and (e) of, and Part A.2(b) of Schedule 2 to, the Loan Agreement. 2. Under Part A.2(b) of the Project, the Ministry will carry out, in collaboration with local authorities, urban environmental action plans (UEAPs). Over the four years of Project implementation, it is currently envisaged that 12 UEAPs would be undertaken. Although not expected, this number may be exceeded, if it is verified through the annual progress reports to be submitted by the Ministry to the Bank that execution of such UEAPs are taking place at a faster pace than currently foreseen. 3. The UEAPs would be carried out for cities indicated as national priorities in the National Development Plan (Law No. 188/1995) and, under the Programa Mejores Ciudades, in Annex 2 of the CONPES Document referred to in Section 1.02(s) of the Loan Agreement (CONPES Document). Other than Bogota, Cali, Medellin-Valle de Aburra and Barranquilla, which are the object of specific technical assistance programs under Part B of the Project and thus are not included under Part A.2(b) of the Project, Law No.188 and the CONPES Document call for priority actions in a total of 11 cities, namely: Cartagena, Buenaventura, Santa Marta, Soacha, Yumbo, and Barrancabermeja (all cited in both documents), Sogamoso and Duitama (cited in the CONPES Document), and Soledad, Pasto and Pereira (cited in Law No. 188). 4. The Ministry will coordinate execution of the UEAPs and will be responsible for consulting with local authorities in order to establish their interest in carrying out such UEAPs, to agree on a suitable methodological approach and timing for the exercise, and to define the appropriate division of technical and financial responsibilities, between the Ministry and local authorities, in preparing the UEAPs. In case one or more of the 11 cities referred to above have already developed environmental planning instruments or for any other reason do not choose to prepare a UEAP, the Ministry will propose additional cities, which should meet at least one of the following criteria: (a) cities with a population approaching one million inhabitants (e.g., Bucaramanga), which, in the near future, are likely to be charged with environmental management functions within their area of jurisdiction, thus replacing the regional corporations; (b) cities neighboring but not included in the jurisdiction of any EMA under Part B of the Project (e.g., Envigado, which is surrounded by but not included in the Metropolitan Area); and (c) other mid-sized cities, industrial corridors or urban areas of special interest which are representative of significant pollution control issues or have the potential for developing environmentally sustainable management strategies and which might constitute relevant paradigms for other urban areas in the country. Page 2 5. Execution of any additional number of UEAPs would be agreed through the corresponding Work Plan, agreed each year between the Bank and the Borrower and approved by the Project Steering Committee, pursuant to Section 3.01(e) of the Loan Agreement. 6. During the first three months of project implementation, the Ministry will develop a detailed work program for the UEAPs and will initiate preliminary contacts with authorities in the corresponding urban areas. It will also undertake a study with the objective of developing three methodological proposals to be used in carrying out the UEAPs, detailing and adapting as needed the guidelines contained in the Annex hereto. These methodological proposals and the UEAP work program would be agreed with the Bank during the first supervision mission. Thereafter, said proposals and work program would be revised in connection with the discussion of the corresponding Agreed Work Plan. 7. Please indicate your compliance with the aforesaid by countersigning below. REPUBLIC OF COLOMBIA By /s/ Authorized Representative AGREED BY: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Acting Regional Vice President Latin America and the Caribbean