The World Bank Dominican Republic Water Sector Modernization Program (P177823) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 11/29/2022 | Report No: ESRSA02448 Nov 29, 2022 Page 1 of 12 The World Bank Dominican Republic Water Sector Modernization Program (P177823) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Dominican Republic LATIN AMERICA AND P177823 CARIBBEAN Project Name Dominican Republic Water Sector Modernization Program Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Water Program-for-Results 12/5/2022 2/28/2023 Financing Borrower(s) Implementing Agency(ies) Dominican Republic National Water and Sewerage Institute (INAPA), Ministry of Economy, Planning, and Development (MEPyD), La Vega Water and Public Disclosure Sewerage Corporation (CORAAVEGA), Santiago Water and Sewerage Corporation (CORAASAN), National Institute for Hydraulic Resources (INDRHI) Proposed Development Objective (i) to improve the planning capacity and operational and commercial efficiency of selected water supply and sanitation institutions; and (ii) to increase access to safely managed water and sanitation services in selected water stressed areas. Financing (in USD Million) Amount IPF Component 0.00 Total Project Cost 3190.56 Nov 29, 2022 Page 2 of 12 The World Bank Dominican Republic Water Sector Modernization Program (P177823) B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] The operation is a US$250 million hybrid operation with two components: a US$225 million PforR (Program) component and a US$25 million IPF (Project) component. The Program will support implementation of a national water supply and sanitation (WSS) modernization program with a geographic focus in the priority Yaque del Norte river basin to improve the commercial and operational efficiency of WSS service providers and expand access to safely managed WSS services in an economically important, highly water stressed, and drought-prone basin. The IPF component includes three Components: • Component 1: Supervision, Coordination, Monitoring, and Evaluation: (US$7.6 million): Inter alia, support the achievement of results under the Program by establishing and strengthening the Program Coordination and Monitoring Unit (PCMU) within the Ministry of Economy, Planning, and Development (MEPyD), financing Program supervision costs, contracting the independent verification agent, and financing of annual external audit services for the Program and Project components. • Component 2: Technical Assistance on Water Supply and Sanitation (US$7.4 million): The PCMU will use IPF funds to contract technical assistance for the WSS providers to address existing WSS capacity gaps and risks that may otherwise undermine the achievement of Program results. Public Disclosure • Component 3: Water Resources Management (US$10 million): Inter alia, support national-level legal and institutional reforms for water resources management (WRM); modernize the national water information system, including the creation of a digital water rights registry; and build capacity amongst WRM professionals, while also conducting activities in the Yaque del Norte basin to improve the understanding of available water resources, pilot a methodology to formalize water rights, and improve the safety and joint operation of dams. D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] The IPF Component will provide technical assistance on WSS and WRM at the national and subnational level. It will also support learning pilots on water resources management in the Yaque del Norte basin. The IPF Component will have a critical role in addressing WSS and WRM challenges in the country. Historically, the country’s water sector faced severe challenges related to the coverage and quality of drinking water and sanitation services, limited wastewater treatment, insufficient monitoring of quantity and quality of water resources, and watershed degradation. These risks are further exacerbated by the significant water stress in many regions of the country due to lower precipitation, rising temperatures, and increasing demand during the past decade. In addition, the country is highly exposed to natural disaster risks, in particular hydrometeorological threats such as hurricanes, tropical storms, floods, and droughts. Climate change is likely to exacerbate these events, causing more vulnerabilities, including freshwater scarcity due to drought and increased evapotranspiration, reduced quality of Nov 29, 2022 Page 3 of 12 The World Bank Dominican Republic Water Sector Modernization Program (P177823) water resources due to floods (sedimentation and polluted runoff) and droughts (increased concentration of industrial effluents, agricultural contamination, and untreated wastewater discharges), damage to water infrastructure due to flooding (both riverine and coastal) caused by severe storms (worsened by sea-level rise), and groundwater salinization accelerated by sea-level rise. The IPF Component is framed to ensure a system of measures aimed at establishing participatory and social accountability mechanisms for water resources management and water services. The reduced availability of water in different areas of the country has led to local conflict and disputes over access. Across the country, access to water is uneven. A majority of urban dwellers have access to piped water with some gaps remaining in rural areas. It is estimated that only one-third of the urban population is connected to a sewerage network, while the rest use different on-site sanitation systems, many of which discharge to nearby rivers without any form of treatment or reach into subsoil and water bodies. In some areas, sewerage networks face serious challenges, where collector systems have collapsed, and wastewater is discharged into local creeks, rivers, or coastlines, which increases the risk to local communities and exacerbates the potential for conflicts. In areas with informal urban settlements, the risks associated with water mismanagement intersect with broader vulnerabilities to natural disaster risks. D. 2. Borrower’s Institutional Capacity The IPF Component will be led by the Ministry of Economy, Planning, and Development (MEPyD). MEPyD is responsible for the overall implementation of the IPF Component and its E&S aspects and will implement Components 1, 2, and part of Component 3 of the IPF. INDRHI will implement the remaining activities of Component 3 Public Disclosure of the IPF, and the management of E&S issues, and will report on these activities to MEPyD. MEPyD and INDRHI will work in close coordination with relevant institutions to build capacity in WSS and WRM subsectors and sector entities, including the National Water and Sewerage Institute (INAPA in its Spanish acronym), the Autonomous Provincial Water Supply and Sewerage Corporations (CORAAs). MEPyD has limited previous experience in implementing projects under the World Bank’s Environmental and Social Framework (ESF), and it will hire or contract one (1) environmental and one (1) social specialist, with experience satisfactory to the Bank, to join the PCMU to implement the TA activities of the IPF component. The installation of Hydromet stations and dam safety instruments will be implemented by the Project Coordination Implementation Unit (PCIU) of the DR Resilient Agriculture and Integrated Water Resources Management Project (P163260) (currently under implementation) which has sufficient E&S capacity and previous experience working with the Bank’s safeguards policies. The Bank will provide guidance and support to the E&S staff of the PCMU and PCIU to ensure compliance with the ESF, as well as during the development of the E&S instruments required by the ESF. Specific capacity building measures to be agreed between the Bank and the Borrower, such as additional training for implementation, have been included in the ESCP. II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate Environmental Risk Rating Moderate Nov 29, 2022 Page 4 of 12 The World Bank Dominican Republic Water Sector Modernization Program (P177823) The environmental risk classification for the IPF Component of the Program is considered moderate. This Component will finance TA activities to address WSS and WRM capacity gaps and risks needed for the achievement of the PfoR, as well as the construction of small infrastructure for the installation of hydrometeorological stations and the installation of dam safety instrumentation. The IPF Component is likely to have an overall positive impact on the environment as it will support the development and implementation of WSS and WRM related activities for water sector modernization in the country. Key environmental benefits may include: (i) promotion of coordinated development and management of water, land, and related resources while achieving sustainable use of water resources; (ii) improvement of surface water and groundwater management for domestic, agricultural, industrial, and environmental needs; (iii) improvement of water availability and water quality of receiving water bodies which are key for biodiversity and ecosystems conservation; (iv) increased access to safely managed water and sanitation services; (v) capacity improvement for the protection and conservation of watersheds/dams which in turn increases health and safety aspects of nearby communities; (vi) increase of resilience to climate change and natural disasters risks; and, (vi) improvement of the E&S management capacities in MEPyD, INDRHI, and other water-related sector entities benefiting from the TA to ensure effective implementation of the ESF in the IPF Component activities. The installation of hydrometeorological stations and dam safety instrumentation are expected to result in minor, site- specific, short-term, and reversible environmental risks and impacts, which may include (i) generation and management of waste; (ii) nuisance related to dust generation, vibration and noise during construction works; (iii) generation and discharge of wastewater from civil works; (vi) temporary disruptions to local traffic during construction activities and; (vi) occupational health and safety hazards for the workforce. At this stage, there is no information on the location where these activities will take place, thus, the ESMPs to be prepared during implementation will include measures to manage these risks and impacts in accordance with the mitigation hierarchy Public Disclosure and in an appropriate manner to the scale and nature of the works. The ESMPs shall be prepared before launching the bidding process for these activities. Social Risk Rating Moderate The social risk classification for the IPF component of the Program is considered moderate. Activities from this component are overall positive and aim to strengthen institutional WSS and WRM strategies, water legislation, and support the development of a broad learning agenda with multiple stakeholders. Potential social risks include: (i) developing a WSS modernization strategy with limited support for new low-income users who may not be able to afford some of the new services or tariffs; (ii) the possibility of not taking into consideration the specific needs and constraints of poor and vulnerable users, including female-headed households when designing TA programs on water resource management and water rights contracted for WSS service providers and TA activities for the pilot on water rights in one of the sub-basins in Yaque Norte; and (iii) resistance to proposed project activities from users, SMEs, and institutional staff, as well as potential push back from specific stakeholder groups. Any potential changes or amendments to national legislation or policies could also pose challenges or resistance from different stakeholders. In this regard, the grievance redress mechanism and a robust consultation process during implementation as described in the SEP are relevant. B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: Nov 29, 2022 Page 5 of 12 The World Bank Dominican Republic Water Sector Modernization Program (P177823) This Standard is relevant. The proposed TA activities to be financed under the IPF Component will support the implementation of the country’s medium- and long-term vision and plans for water sector reforms. These activities may include (i) support on the design of national level WSS and WRM reforms; (ii) a learning agenda on WSS utility management, gender inclusion, citizen engagement, and water resources management; and (iii) capacity building support to MEPyD, WSS providers, and national and subnational institutions for WRM (including capacity building on dam safety and operation), among others. The Project will retroactively finance the hiring of consultants needed to implement the IPF Component and/or to support the TA activities to be carried out throughout the life of the project. The ToRs for the hiring of consultants will include ESF provisions as relevant and needed to ensure that TA activities are carried out following the ESF requirements. No works or goods will be retroactively financed. The Operations Manual (OM) will also include a negative list of expenditures that may not be considered eligible for retroactive financing. These activities are expected to result in indirect E&S benefits related to the integrated and sustainable management of water resources which is key to ensure water quality and availability for different E&S needs. From an environmental perspective, indirect benefits include conservation of biodiversity and ecosystems, improvement of water resource management and services for water users and water-dependent sectors, reduction of water contamination due to the coverage expansion of WSS services, contribution to climate change adaptation, and resilience towards natural disaster risks, and improvement of the safety of nearby communities due to the increasing capacity to manage watersheds/dams. From a social perspective, the IPF Component is expected to have positive impacts, aiming to develop a comprehensive and inclusive institutional framework, strengthening institutional capacities, and developing a broad learning agenda for WSS, while leveraging the capacity of the government to Public Disclosure develop sustainable institutional and organizational platforms. The activities supported by this TA will need substantive citizen engagement, a robust communication strategy, and periodic consultations, especially during implementation. To avoid the risk of exclusion of vulnerable groups, and provide opportunities for all stakeholders to participate in discussions around amendments to national legislation or policies, the pilot activity around the registration of water users, and other TA activities, MEPyD, and all relevant government institutions will ensure that a broad spectrum of stakeholders is included during the implementation phases, emphasizing engagement with vulnerable groups. The installation of hydromets may involve small civil works and might lead to minor on-the-ground impacts. For these activities, the PCIU in coordination with MEPYD will prepare, consult, adopt, disclose, and implement Environmental and Social Management Plans (ESMPs), in accordance with the ESF, the EHSGs, and other relevant Good International Industry Practice (GIIP), and in a manner acceptable to the Bank. The ESMPs shall include site-specific Environmental and Social Assessments and generic environmental and social procedures applicable for such types of civil works, as needed. Specific considerations will be included in the ESMPs to ensure that if the use of private areas is required for the installation of hydromets, these will be carried out in areas where land is donated voluntarily or based on voluntary agreements with the owners. The project will ensure sufficient information and evidence on the voluntary nature of these donations/agreements, as well as on the terms and associated expectations of each of the parties participating in the process. The ESMP shall be prepared before launching the bidding process for the respective project activities and implemented throughout Project implementation. The installation of the dam safety instrumentation to take place on existing dams in the Yaque del Norte basin may also require some minor and site-specific work prior to the installation works. As each dam to be intervened will be Nov 29, 2022 Page 6 of 12 The World Bank Dominican Republic Water Sector Modernization Program (P177823) assessed on a case-by-case basis, a simplified ESMP which will include key E&S mitigation measures following the mitigation hierarchy will be required to be prepared by INDRHI in coordination with MEPYD and approved by the Bank before launching the bidding process for these activities. For those dams being supported by the ongoing Resilient Agriculture and Integrated Water Resources Management (P163260) and the Water Supply and Wastewater Services Improvement (P171778) projects, no further dam safety considerations will be needed as these will be addressed in the aforementioned projects. All other dams that may be considered under this Project will require a dam safety assessment in accordance with ESS4-Annex 1. These requirements are detailed in the Environmental and Social Commitment Plan (ESCP) prepared for the IPF Component. The Terms of Reference (ToR) for each study to be carried out under the IPF Component will be reviewed by the Bank to ensure that all studies are prepared consistent with ESF requirements. In accordance with WB E&S Policy, the ToRs, work plans, or other documents defining the scope and outputs of technical assistance activities will be drafted so that the advice and other support provided is consistent with ESSs 1–10 as well as the World Bank’s EHS General Guidelines related to water and sanitation sectors. This is also documented in the ESCP. The requirements set out under footnote 13 of the WB ESF Policy, as well as paragraphs 14–18 of ESS1 will be applied to all IPF Component activities as relevant and appropriate to the nature of the potential risks and impacts. ESS10 Stakeholder Engagement and Information Disclosure This Standard is relevant. Preparation activities have been used to inform the development of a draft Stakeholder Public Disclosure Engagement Plan (SEP), which includes a Grievance Redress Mechanism (GRM). The draft SEP has been prepared and consulted by the Client (in July, September, and November 2022) and disclosed prior to appraisal. The final version of the SEP will be updated, consulted, and adopted no later than 120 days after effectiveness, as reflected in the project’s ESCP. The GRM will be operational throughout project implementation and has been documented as part of the SEP and will have its own estimated budget and personnel. The GRM is based on the existing grievance mechanism in MEPyD with minor adaptations to ensure its compliance with EAS10 requirements for such mechanisms, commensurate with the risk level of the IPF Component activities. The GRM allows for anonymous submission of grievances and also accommodates SEA/SH grievances that will be addressed by focusing on the confidentiality and safety of the victim. The draft SEP includes a directory of institutions that can provide support to GBV victims. The SEP also describes how the GRM will continue to be socialized amongst stakeholders. The SEP describes communication strategies, with relevant outreach mechanisms for the intended audiences (e.g., specific stakeholder groups, and actors with particular needs). A round of consultations was carried out by the Borrower during preparation in June, September, and November 2022. The consultations included socializing and feedback on Program design, details of the PforR and IPF components, E&S risks, as well as key risk mitigation measures from the draft SEP and draft LMP, including the respective grievance mechanisms, proposals for stakeholder communication, and participation, amongst others. The first consultations focused on civil servants working for relevant government agencies and waterservice providers and were complemented in November by consultations carried out by MEPYD in coordination with INDRHI with academia, NGOs, local interest groups including water users in the influence area of the different waterservice providers. Most of which requested more information about the Program and the Project and were overall supportive of it. The draft versions of the E&S instruments were also disclosed and virtually consulted, sending it to key stakeholders, and requesting their input by a certain date. Nov 29, 2022 Page 7 of 12 The World Bank Dominican Republic Water Sector Modernization Program (P177823) Stakeholder engagement activities during implementation will include, among others, CSOs, women’s associations, consumer associations, and the private sector. Once the sub watershed in the watershed North Yaque, where the pilot activity on water rights and registration of water users will take place, has been defined, MEPyD and INDRHI will carry out another round of consultations with before mentioned mapped stakeholders. During implementation, as described in the draft SEP, and once the IPF Component objectives are further defined and grounded, consultations will prioritize, as relevant, the inclusion of vulnerable groups including women, persons with disabilities, LGBTI communities, migrants, and others. The updated SEP will be periodically reviewed by the borrower, to ensure its proper implementation, monitoring, and evaluation. In accordance with the SEP, the PCMU and MEPyD, and the PCIU at INDRHI will continue carrying out meaningful stakeholder engagement and consultations throughout the life cycle of the operation, paying particular attention to the IPF Component’s potential impacts on poor and vulnerable households from activities aimed at developing the national WSS modernization program. The results from those stakeholder engagement processes and consultations will inform the design of external and internal communications and public outreach campaigns during implementation, as well as the client-oriented knowledge products, learning, and adopting gradual improvements to virtual and face-to-face engagements. B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions Public Disclosure This Standard is relevant given that the operation may hire skilled workers to carry out the work of the IPF Component activities. The operation will involve government civil servants as well as contracted workers who will work on the operation full-time or part-time. A draft version of standalone Labor Management Procedures (LMP) has been prepared and consulted by the Client (September 2022) and disclosed prior to appraisal. A final version will be updated, consulted, and adopted no later than 120 days after effectiveness. To the extent that the Project could imply the development and implementation of new HR and hiring procedures, these processes, as well as access to training, job assignments, and promotions will be managed transparently and will be based on the principles of equal opportunity, fair treatment, and non-discrimination. At this stage, the IPF Component foresees two main types of relevant employment relationships: existing technical staff from national institutions who would provide technical inputs to the Project’s objectives, and external consultants who could be hired by these institutions to strengthen this technical support. The draft LMP also describes in detail the national labor-related laws that are to be upheld related to public service, labor law, public service human resource policies, and institutional roles related to enforcement of the laws and recruitment, discipline, appraisals, and dismissals. The draft LMP also includes a dedicated grievance redress mechanism (GRM) separate from the Program level GRM, accessible to any direct and contracted workers. This GRM will be easily accessible and will contain measures to protect such workers against any reprisal for its use. Full information on this GRM will be provided to all direct and contracted workers at the time of recruitment. No major occupational health and safety (OHS) hazards associated with the IPF Component activities are expected. Labor considerations will focus on standard aspects considering worker well-being, health, and safety, including any necessary measures to ensure adequate management of COVID-19 risks. The LMP includes OHS and COVID-19 transmission prevention considerations applicable to this Component. The ESMPs to be prepared during Nov 29, 2022 Page 8 of 12 The World Bank Dominican Republic Water Sector Modernization Program (P177823) implementation will include an Occupational Health and Safety Plan (OHSP) in line with the WBG EHS Guidelines to ensure health and safety of workers during the construction and installation of the hydromet stations. No risk of child labor is anticipated given the focus on consultancies since all workers hired in connection with the Program will be over 18 years old. The LMP describes the processes to ensure this is averted. The ESCP and the Operations Manual will also include OHS considerations (including COVID-19 considerations) to ensure the health and safety of workers during the development of IPF Component activities and codes of conduct acceptable to the WB to mitigate the risk of harassment or misconduct in the workplace and establish measures and criteria to reduce the risk of gender based violence (GBV) and/or sexual harassment (SH) as a part of the Program activities. ESS3 Resource Efficiency and Pollution Prevention and Management This Standard is relevant. The construction and installation of hydromet stations and dam safety instrumentation may generate pollution in different forms. Appropriate mitigation measures will be developed as part of the ESMPs to be prepared following the mitigation hierarchy. Some possible mitigation measures will include the following: Construction materials needed for construction activities (sand, stones, timber, etc.) will be obtained from licensed quarries and certified timber suppliers. Based on available information, construction is expected to be minor and limited to existing footprints, with limited soil removal and clearance of vegetation. Any waste generated by Project activities will be disposed of according the Waste Management Plan to be prepared Public Disclosure which will be in line with national regulations, this ESS, and WBG EHS Guidelines. The ESMPs will include guidance on how to manage and dispose construction waste, including mostly waste from excavated soil and debris and hazardous waste such as hydrocarbon oils from construction machinery and vehicles. Any waste generated by the construction activities will be disposed according to national regulations and international best practices. The ESMPs will also include specific considerations for the management of wastewater that may occur during construction work. Air emissions and noise generated during the construction phase from the use of heavy vehicles, machinery, and construction activities are expected to be minor and the ESMPs will consider mitigation measures which may include dust suppression and vehicle maintenance to minimize the impact of air emissions. Given that the TA activities to be financed under the IPF Component of the Program are limited to capacity building, these are not expected to generate any pollution. Key environmental indirect benefits from the TA are mostly related to the support of WRM and WSS activities which will promote the sustainable use of water resources, improve the water quality of receiving water bodies, and increase access to safely managed water and sanitation services. As applicable, TA activities financed under the IPF Component will include ESS3 considerations. ESS4 Community Health and Safety This Standard is relevant. Given that the construction and installation of hydromet stations may expose communities to health and safety risks, especially those communities that may be immediately close to possible construction sites and activities. The installation of dam safety instrumentation is not expected to result in impacts to the communities as these will be placed within existing dams. The ESMPs will include traffic management considerations, including Nov 29, 2022 Page 9 of 12 The World Bank Dominican Republic Water Sector Modernization Program (P177823) measures to prevent traffic accidents. The need for fences and security systems around project sites, as well as placement of construction equipment in secured storage during the construction period, will also be assessed and considered in the ESMPs. As relevant, appropriate security measures will be included in bidding documents for contractors. As each dam to be intervened will be assessed on a case-by-case basis and screened with a first internal screening procedure to exclude any risky dam. A simplified ESMP which will include key E&S mitigation measures following the mitigation hierarchy will be required to be prepared by INDRHI in coordination with MEPYD and approved by the Bank before launching the bidding process for these activities. For the installation of dam safety instrumentation on those dams already supported by the Bank (through P163260 and P171778) and which are addressing dam safety considerations as part of the scope of the said projects, the Borrower will ensure that remedial dam safety measures have been correctly implemented in these projects as these are being addressed in these projects. All other dams to be selected for the installation of dam safety instrumentations will require to comply with Annex1 of ESS4; INDHRI will ensure their safety through an independent dam safety assessment and required remedial works. Thus, these investments and the requirements of this Standard will be assessed on a case-by-case basis. The activities to be financed under the IPF Component are not expected to increase community exposure to risks and impacts primarily because there will be no associated infrastructure works. However, key environmental indirect benefits from the IPF Component, which are related to the support of WSS and WRM activities, may include the increase of community health and safety aspects as a result of the capacity improvement for the protection and conservation of watersheds, improvement of water quality, and increase of resilience to climate change and natural Public Disclosure disasters. Project activities involving participation will be designed taking into account relevant local public health requirements in the context of the COVID-19 pandemic, including the good practice principles included in the World Bank Technical Note on “Public Consultations and Stakeholder Engagement in WB-Supported Operations when there are Constraints on Conducting Public Meetings (March 20, 2020)”. These aspects will be contextualized and assessed in the SEP. As applicable, activities financed under the IPF Component will include ESS4 considerations. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement This Standard is relevant. The Project will not involve major physical investments having on-the-ground impacts, and no physical or economic displacement is expected. However, in the case of the only on-the-ground activity, the installation of hydromet equipment may involve the use of land legally owned by INDRHI, which will be responsible for implementing parts of Component 3. The ESCP details that the ESMPs for such activities will include measures and actions to avoid, minimize or mitigate negative impacts from the installation of hydromet investments on displacing people or businesses that occupy land where installation would take place, even if the land is owned by INDRHI. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources This Standard is relevant. The activities to be financed under the IPF Component are not expected to have any direct negative impact on the biodiversity and the sustainable management of living resources. The installation of hydromet stations are not expected to be located within or in the proximity of important biodiversity conservation areas or natural habitats. However, the ESMPs to be prepared during implementation will further assess potential risks and impacts on the biodiversity and will include mitigation measures following the mitigation hierarchy as needed. Nov 29, 2022 Page 10 of 12 The World Bank Dominican Republic Water Sector Modernization Program (P177823) Based on available information, environmental indirect benefits related to the WSS and WRM activities to be financed under the IPF Component are expected to increase water quality and availability which are key for biodiversity and terrestrial and aquatic ecosystems conservation. As applicable, activities financed under the IPF Component will include ESS6 considerations. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities The Standard is not relevant. ESS8 Cultural Heritage This Standard is relevant since some of the construction activities may involve soil excavations. The ESMPs will include Chance Finds Procedures for civil works to be carried out under the project. All construction contracts will also include a Chance Finds clause which will require contractors to take protective measures in case cultural heritage sites are discovered during construction. TA activities are not expected to have a negative impact on cultural heritage, whether in its tangible or intangible forms. As applicable, activities financed under the IPF Component will consider Cultural, Tangible, and Intangible Heritage Protection aspects. ESS9 Financial Intermediaries Public Disclosure The standard is not relevant. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No The Program boundary and expenditure framework explicitly exclude investments in transboundary watersheds. OP 7.60 Projects in Disputed Areas No B.3. Reliance on Borrower’s policy, legal and institutional framework, relevant to the Project risks and impacts Is this project being prepared for use of Borrower Framework? No Areas where “Use of Borrower Framework” is being considered: None. IV. CONTACT POINTS Nov 29, 2022 Page 11 of 12 The World Bank Dominican Republic Water Sector Modernization Program (P177823) World Bank Contact: Craig Phillip Kullmann Title: Senior Water Supply and Sanitation Specialist Telephone No: +1-202-458-2083 Email: ckullmann@worldbank.org Contact: Marie-Laure Lajaunie Title: Lead Water Resources Management Specialist Telephone No: +1-202-473-9733 Email: mlajaunie@worldbank.org Borrower/Client/Recipient Borrower: Dominican Republic Implementing Agency(ies) Implementing Agency: National Water and Sewerage Institute (INAPA) Implementing Agency: Ministry of Economy, Planning, and Development (MEPyD) Implementing Agency: La Vega Water and Sewerage Corporation (CORAAVEGA) Implementing Agency: Santiago Water and Sewerage Corporation (CORAASAN) Public Disclosure Implementing Agency: National Institute for Hydraulic Resources (INDRHI) V. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VI. APPROVAL Task Team Leader(s): Craig Phillip Kullmann, Marie-Laure Lajaunie Practice Manager (ENR/Social) Genevieve Connors Cleared on 28-Nov-2022 at 17:10:7 GMT-05:00 Nov 29, 2022 Page 12 of 12