Turkey - Third Programmatic Financial and Public Sector Adjustment Loan Project

Annex VIII Page 1 of 4 TURKEY THIRD PROGRAMMATIC FINANCIAL AND PUBLIC SECTOR ADJUSTMENT LOAN INTEGRATED SAFEGUARDS DATA SHEET Integrated Safeguards Data Sheet Section I - Basic Information Date ISDS Prepared: April 17, 2003 A. Basic Project Data (from PDS) I.A.1. Project Statistics COUNTRY: Turkey PROJECT ID: TU-PE-P082996 PROJECT: PFPSAL 3 TTL: James Parks/Lalit Raina APPRAISAL DATE: May 2003 IBRD AMOUNT ($m): 900 BOARD DATE: June 19, 2003 IDA AMOUNT ($m): - MANAGING UNIT: ECSPE/ECSPF SECTOR: EP-Economic Policy LENDING INSTRUMENTS: PSL STATUS: Preparation completed. I.A.2. Project Objectives (From PDS) The main objective of the proposed PFPSAL 3 is to support implementation during 2003 of the Government's financial and public sector reform priorities in response to the 2001 economic crisis, while continuing to ensure that social programs are adequately funded and increasingly better targeted. I.A.3. Project Description (From PDS) The proposed Third Programmatic Financial and Public Sector Adjustment Loan (PFPSAL 3) is the third Loan in support of the Government's multi-year financial and public sector reform program. It follows on the first Programmatic Financial and Public Sector Adjustment Loan of US$ 1.1 billion approved in July 2001 (US$700 million on standard IBRD terms and US$400 million on SSAL terms) and the second Programmatic Financial and Public Sector Adjustment Loan of US$1.35 billion approved in April 2002 (US$550 million on standard IBRD terms and US$800 million on SSAL terms). Key reform priorities in the financial sector include: (i) overhaul of the regulatory framework for banking activity, (ii) institutional development of the new Bank Regulation and Supervision Agency (BRSA), (iii) problem bank/bank failure resolution, and (iv) state bank restructuring and privatization. Key reform priorities in the public sector include: (a) a further deepening of structural fiscal policies in support of sustainable fiscal adjustment, (b) implementation of the Government's public expenditure management reform program including concrete improvements in budget planning and execution, completion of the new legal and institutional framework for financial management and accountability, and consolidation of the new system of public liability management, and (c) implementation of the Government's strategy to strengthen public sector governance including implementation of the national anti-corruption strategy and preparation of civil service reform. Priorities for social spending include: (i) adequate expenditure allocations for health, education and social protection in the 2003 budget in line with benchmarks agreed under the PFPSAL program and (ii) better targeting of social protection to vulnerable groups including framework legislation to institutionalize the direct income support (DIS) program for farmers. I.A.4. Project Location: N/A Bl. Clheck Environmental Classification A [],B [ }, C [x ], Fl [],TBD [ ] Comments: Increases in fuel taxes enacted in 2002 under the program should act to promote energy conservation and the shift away from indirect agricultural subsidies to direct income support may reduce the use of environmentally harnmfulfertilizers. Improvenments in Public Expenditure Management should permit line ministries, including The Ministmy of Environment, to be miore focused in their use of resources. C Safeguard Policies Triggered (from PDS) lClick on Policy name for brief summary of objectives, triggers and requirementsl lClick on Policy reference number for full policyl I.CI. Table on applicability Yes No TBD Environmental Assessment (OP/BP/GP 4.0 1) I I [x I I I 4 51 -741  Annex VIII Page 2 of 4 Forestry (OP/GP 4.36) [ ] [x] [ ] Natural Habitats (OP/BP 4.04) [ ] [x] [ ] Safety of Dams (OP/BP 4.37) [ ] [ x] [ I Pest Management (OP 4.09) [ ] [ x] [ ] Involuntary Resettlement (OD 4.30) [ ] L x] [ I Indigenous Peoples (OD 4.20) 1] [ x] [ ] Cultural Property (OPN 11.03) [] [ x] [ L Projects in Disputed Areas (OP/BP/GP 7.60) [ ] [ x] [ I Projects on International Waterways (OP/BP/GP 7.50) [ ] [ x] [ I By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas  Annex VIII Page 3 of 4 Section II - Key Safeguard Issues and Their Management II.D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data. II.D. 1 a. 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 not directly finance physical investments; it will provide foreign exchange and general budgetary support. II.D.Ib. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. N/A II.D. I c Describe any potential long term impacts due to anticipated future activities in the project area. N/A II.D.2. In light of 1, describe the proposed treatment of alternatives (if required) N/A II.D.3. Describe arrangement for the borrower to address safeguard issues N/A II.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. N/A E. Safeguards Classification (select one). Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply. [ ] SI. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in management of one or more safeguard areas [ ] S2. - One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable [X] S3. - No safeguard issues [] SF - Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues. F. Disclosure Requiremenzts Expected Date Actual Date Environmental Assessment/Analysis/Management Plan: Date of receipt by the Bank N/A Date of "in-country" disclosure N/A Date of submission to InfoShop N/A For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors N/A Resettlement Action Plan/Framework: Date of receipt by the Bank N/A Date of "in-country" disclosure N/A Date of submission to InfoShop N/A Indigenous Peoples Development Plan/Framework: Date of receipt by the Bank N/A Date of "in-country" disclosure N/A Date of submission to InfoShop N/A Pest Management Plan: Date of receipt by the Bank N/A Date of "in-country" disclosure N/A Date of submission to InfoShop N/A Dam Safety Management Plan: Date of receipt by the Bank N/A Date of "in-country" disclosure N/A Date of submission to InfoShop N/A  Annex VIII Page 4 of 4 If in-country disclosure of any of the above documents is not expected, pleasc explain why. N/A Signed and submitted by: Task Team Leader: James Parks Date: April 29, 2003 Project Safeguards Specialist 1: Name Date: Project Safeguards Specialist 2: Namne Date: Project Safeguards Specialist 3: Name Date: Approved by: Regional Safeguards Coordinator Jane Holt Date: April 29,2003 Conmnents Sector Manager 3A ( Samuel Otoo qk at)-DAte: April 29, 2003 Comments