INTEGRATED SAFEGUARDS DATASHEET
APPRAISAL STAGE
I. Basic Information
Date prepared/updated: 08/28/2008 / Report No.: AC33591. Basic Project Data
Country: Angola / Project ID: P096360
Project Name: Water Sector Institutional Development Project
Task Team Leader: Luiz Claudio Martins Tavares
Estimated Appraisal Date: April 16, 2008 / Estimated Board Date: July 31, 2008
Managing Unit: AFTU1 / Lending Instrument: Specific Investment Loan
Sector: Water supply (75%);Sanitation (25%)
Theme: Access to urban services and housing (P);Water resource management (S)
IBRD Amount (US$m.): 0.00
IDA Amount (US$m.): 57.00
GEF Amount (US$m.): 0.00
PCF Amount (US$m.): 0.00
Other financing amounts by source:
BORROWER/RECIPIENT 56.20
56.20
Environmental Category: B - Partial Assessment
Simplified Processing / Simple [] / Repeater []
Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and Emergencies) / Yes [ ] / No [X]
2. Project Objectives
The project development objective (PDO) is to strengthen the institutional capacity and efficiency of agencies in the water sector to improve access and reliability of water service delivery. The achievement of the PDO will be measured in terms of the following indicators: (i) 66% of PWSUs achieving annual profitability targets; (ii) 80% of hydrometric stations operational; and (iii) 72,000 households with connections to the piped water supply network managed by the utilities in the target cities.
3. Project Description
The project will finance the following four components:
Component 1 - Development of Institutions in the Water Supply Sub-Sector (US$21.7 million)
The objective of this component is to strengthen the institutional framework for the water supply sub-sector at both the central and regional levels. The objective will be achieved through the implementation of three related subcomponents: (1.1) development of the Asset Management Unit; (1.2) creation of Provincial Water Supply and Sanitation Utilities; and (1.3) development of a Regulatory Agency for the water supply and sanitation sub-sector.
Subcomponent 1.1 will develop an Asset Management Unit (AMU) under MINEA for Provincial towns and cities. The AMU will manage assets, plan and oversee execution of investments and engage third party operators in cities and towns.
Subcomponent 1.2 will facilitate creation of Autonomous Provincial Water and Sanitation Utilities (PWSUs) that will be responsible for operating water assets of participating cities and towns at the provincial level. The AMU will delegate responsibility for contracting and supervising service operators to the PWSUs through performance based contracts. This arrangement will further the decentralization and devolution process and promote provincial involvement in and "ownership" of the utilities. The PWSUs will also provide opportunities to capture economies of scale and will create a mechanism for more transparent and effective consultation between central and local levels regarding the planning and implementation of investments. The PWSUs will be public corporations created under the project pursuant to provisions of the Public Enterprise Law 9/95.
Subcomponent 1.3 will support development and establishment of a Regulatory Agency for the water supply sub-sector. The project will support technical assistance to create a regulatory agency; and continuing support to the operational work, capacity building, and technical assistance for the Regulatory Agency.
Component 2 - Water Resources Management (US$12 million)
This component will support the strengthening of the institutional framework for the water resources management sub-sector. This objective will be achieved through three sub-components which are: (2.1) development of an institution for water resources management; (2.2) development of systems for water resources management; and (2.3) rehabilitation of water resources management systems.
Subcomponent 2.1 will finance studies and technical assistance to create a National Water Resources Institute building on the existing work done by the GOA. Included in this work would be the preparation of an infrastructure investment analysis to define the minimum infrastructure platform required to facilitate the potential contribution of water resources to sustainable economic development.In addition, technical assistance will be provided to begin the review/study of the safety of the country’s existing dams.
Subcomponent 2.2 will support development of appropriate instruments to integrate sector water demands, ensure sustainable management of water resources and increase productive use of the country’s water resources by piloting two Integrated Basin Management Plans (IBMPs) in the Cuanza and Cubango river basins.
Subcomponent 2.3 will increase the capacity to effectively manage water resources by continuing to support rehabilitation of the hydrometric network, which was abandoned during the war, and the development of information management systems.
Component 3 - Rehabilitation of Water Supply Systems (US$51.8 million)
This component will support the physical rehabilitation of selected urban water supply systems due to the critical need to reverse many years of inadequate investments and maintenance. These investments will be implemented in two phases.Phase 1 will finance investments in the 5 cities piloting the PWSUs (likely to be Malange, Kuito, N'Dalatando, Huambo, and Uige) and thus also support the economic sustainability of those PWSUs. Phase 2 will finance investments in up to 4 additional cities (likely to be M'Banza Congo, Menongue, Lubango, and Luena) and will begin when the 5 PWSUs have been established, are operational with the first annual financial statements issued and the rehabilitation works in those 5 cities are underway. The component has two subcomponents.
Subcomponent 3.1 will finance approximately 240 kilometers of water supply networks and some 72,000 domestic connections in urban and peri-urban areas in the five likely phase 1 cities of: Malange, Kuito, N'Dalatando, Huambo, and Uige, and in the four likely phase 2 cities of: M'Banza Congo, Menongue, Lubango, and Luena . These investments are important to provide needed water supply services to the population, and to support the economic sustainability of the PWSUs formed in each of the nine cities.
Subcomponent 3.2 will finance a technical cadastre for about 72,000 new connections and implement an information system for measuring water consumption, processing and emitting bills to customers, and recording customer payments. This sub-component will also support the PWSUs by financing the operating costs of these entities.
Component 4 - Capacity Building and Change Management (US$11.0 million)
This component will strengthen the ability of government to improve efficiency of water supply in Angola by engaging stakeholders, managing and communicating change, and improving the abilities of individuals to play their parts, especially at management and technical levels. The objectives will be achieved through three sub-components: (4.1) capacity-building at the national and provincial levels; (4.2) capacity building and training at the utility level; and (4.3) technical assistance to facilitate change management and good governance.
Subcomponent 4.1 will build capacity at the national and provincial levels and engage senior national (ministerial) and provincial officials on the proposed institutional changes for the sector. At the national level, the sub-component will support training in management for DNA/AMU staff as well as the efforts of DNA to rehabilitate and equip the Centro de Investigacao e Pesquisa de Onga Zanga (CIPOZ). At the provincial level, the sub-component will support social mobilization (communication) and training for sector functions to be delegated to provincial departments of water (DPAs). This sub-component will support the implementation of the ESMF and the RPF.
Subcomponent 4.2 will provide specific, targeted training to members of the Boards of Directors of PWSUs concerning company organization, basic financial analysis and funds flow, duties and responsibilities for oversight and public communication. It will also offer training in leadership, management, finance, communications, and planning to staff of the PWSUs. This subcomponent will pilot a “Learn by Doing” program to apply a successful institutional development method to the new PWSUs. The pilot will use funds to build institutional capacities and support activities benefiting the poor in peri-urban areas (for example small tertiary network expansion or the construction of water points managed by private operators). Essentially, this means developing the capacity of the PWSUs to prepare and implement a peri-urban expansion strategy to improve the level of service to the areas currently not being served by the utilities. Companies would carry-out tasks including sub-contracting, with some training and support, thereby improving both human and institutional capacity.
Subcomponent 4.3 will support the efforts of MINEA, PWSUs, and provincial water departments to change the direction and focus of the sector by strengthening on-going and planned communication programs to improve the link with the communities and to encourage feedback from them. The sub-component will also support the improved management of the sector by developing and updating a risk management plan and implementing the governance and accountability action plan.
4. Project Location and salient physical characteristics relevant to the safeguard analysis
The project will support physical works associated with the water supply network in nine cities: M'Banza Congo, Menongue, Lubango, Luena, Malange, Kuito, N'Dalatando, Huambo, and Uige.
The project will also support physical works at approximately 189 hydrometric stations nationwide along with the physical rehabilitation of up to ten buildings in an area located in the outskirts of Luanda.
It is envisaged that project activities under Subcomponent 2.3 (rehabilitation of the national hydrometric network), Subcomponent 3.1 (installation of approximately 240 kilometers of piped water supply networks and some 72,000 new domestic connections in urban and peri-urban areas in the 9 target cities), Subcomponent 3.2 (purchase of chemicals for water treatment), Subcomponents 4.1 (rehabilitation of the Onga Zanga Investigation and Research Center CIPOZ) and 4.2 (funding for small civil works projects to serve peri-urban areas) may generate adverse environmental and social impacts.
The nature of the civil works and project activities associated with each of the aforementioned subcomponents are as follows:
Subcomponent 2.3 - Rehabilitation of the hydrometric network
A. GAUGING STANDARD STATIONS
- Improve existing access to the station.
- Removal and disposal of damaged components of the existing station.
- Repair damaged or destroyed infrastructure (restore damaged concrete pillars, replace metal pipe, replace and weld metal supports, replace cover sheets in the shelter, apply anticorrosive paints, repair or replace damaged scales).
- Install water meter devices on river banks inside shelter that use12v batteries or photo voltaic cells.
B. WEIRS
- Removal and disposal of damaged components of the existing weir.
- Repair damaged or destroyed infrastructure (restore damaged concrete foundation and wall, weld metal supports, apply anticorrosive paints, repair or replace damaged scales).
Subcomponent 3.1 - Installation of water supply networks and household connections in urban and peri-urban areas in nine cities.
- Prepare alternative accesses during construction.
- Dig trenches (approximately 1 m deep), install HDPE tubing and cover with soil.
- Connect selected households to distribution network and install water meters and back yard taps.
Subcomponent 3.2 - Purchase of chemicals for water treatment
- Supply of chlorine, aluminum sulfate and caustic soda
- Construction of adequate storage for annual supply of chemicals.
- Handling of chemicals and packaging.
- Disposal of empty chemical packaging.
Subcomponent 4.1 - Rehabilitation of the Onga Zanga Investigation and Research Center CIPOZ.
- Removal and disposal of debris of the existing buildings.
- Rehabilitate existing buildings: concrete repairs, wall repairs, cover sheets replacement, wood and glass repairs and replacement, plastering, painting, plumbing, electrical works, etc.
- Rehabilitate water supply, sewerage and electrical components of the buildings.
Subcomponent 4.2 - Small water projects that will extend networks and standposts to serve peri-urban areas.
- Prepare alternative access.
- Dig trenches (approximately 1 m deep), install plastic HDPE pipe and fittings, connect pipe to existing network and cover trench with soil.
- Construct water points (chafarizes/fontenarios) and connect to distribution system; dig foundations, reinforce concrete works, plumbing works and drainage system.
It is important to note that the project activities will complement water supply network investments already being financed through the World Bank's Emergency Multi-Sector Recovery Program and projects financed by the Government of China in a number of the target cities. This project will build on these works and, as such, may contribute to the generation of cumulative adverse environmental and social impacts. The Bank and the borrower are aware of the need to coordinate oversight and management of the various projects to ensure compliance with national laws and Bank safeguard policies and to minimize any cumulative impacts that the various projects may have on the environment and local communities.
5. Environmental and Social Safeguards Specialists
Ms Kristine Schwebach (AFTCS)
Ms Cary Anne Cadman (AFTEN)
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:
The project was reviewed and screened at Project Concept Note stage and designated as a Category B project consistent with the provisions of OP/BP/GP 4.01. Safeguard policies triggered by the Project include: i) Environmental Assessment (OP/BP/GP 4.01); and, (ii) Involuntary Resettlement (OP/BP 4.12).
The project will finance extension of water supply distribution networks and metering in select cities (construction and rehabilitation) and construction and rehabilitation of the deteriorated national hydrometric network along with rehabilitation of select learning and research facilities located in the outskirts of Luanda.
The potential adverse environmental and social impacts related to this project were addressed during project preparation. At appraisal, it was determined that no large scale, significant or irreversible adverse environmental or social impacts are expected. No major works are expected. The principal safeguard issue with respect to OP/BP 4.01 is construction site impacts that are relatively small in scale, time bound and manageable in terms of complying with Bank Safeguard Policies. The contribution to any potential cumulative impacts associated with other water supply network investments in select cities are expected to be minimal.