The World Bank Climate Resilient Infrastructure for Urban Flood Risk Management (P178534) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 01/20/2023 | Report No: ESRSA02422 Jan 20, 2023 Page 1 of 16 The World Bank Climate Resilient Infrastructure for Urban Flood Risk Management (P178534) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Argentina LATIN AMERICA AND P178534 CARIBBEAN Project Name Climate Resilient Infrastructure for Urban Flood Risk Management Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Water Investment Project 2/16/2023 4/25/2023 Financing Borrower(s) Implementing Agency(ies) Ministry of Economics Public Works Ministry Proposed Development Objective The PDO is to reduce flood risk in selected cities and improve integrated urban flood risk management in Argentina, Public Disclosure and act effectively in case of an eligible crisis or emergency. Financing (in USD Million) Amount Total Project Cost 200.00 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] Argentina faces critical water security challenges derived from a lack of safe water supply and sanitation, increasing water demand, and exposed climate variability. This affects safe water provision, and reliable flows needed for agriculture, industry, and hydropower. Flooding is the major natural hazard in Argentina that poses a significant developmental challenge with large environmental and socio-economic impacts. In Argentina, 60 percent of natural disasters are floods, and have resulted in 95 percent of economic losses by natural disasters for the affected populations. About 70 percent of the Argentine population lives in the La Plata river basin This area has the highest rainfall in the country, and combined with the high-water tables, the riverine provinces are recurrently exposed to Jan 20, 2023 Page 2 of 16 The World Bank Climate Resilient Infrastructure for Urban Flood Risk Management (P178534) flooding. Records state that 14.2 million Argentinians live in flood-prone areas. According to the Water Security Diagnostic for Argentina, about 28 percent of Argentina´s population is exposed to flooding, with a probability of recurring once every 100 years. Moreover, 50 percent of the affected population is poor, while women and children are among the highest risk groups. To reduce pluvial and fluvial flooding in urban areas a paradigm shift towards integrated management is needed. This includes a river basin management approach. To reduce peak flows precipitation should be detained locally within the capillaries of the water system. The next step is to find opportunities to retain or store water to delay the discharge towards the drainage system and finally where necessary the drainage system needs to be provided with the room to drain peak flows to reach an acceptable flood risks level. The design of the system needs to consider the effects of climate change and authorities need to have the regulations in place and the capacity to control settlements in flood prone areas and natural streams. Argentina is a federal country and natural resources management falls under provincial jurisdiction, while municipalities and local governments are responsible for urban planning and land use management. Due to the complex and dispersed institutional framework, the diversity of actors, and the political-institutional dynamics, Argentina’s regulatory frameworks are often insufficient to enable the adequate management of water resources, particularly in inter-jurisdictional situations. These governance challenges highlight the need to develop updated frameworks that guarantee the adequate implementation, monitoring, operation, and maintenance of infrastructure. Although urban flood hazard is considered high in Argentina, few cities have truly integrated water management Public Disclosure plans to properly prioritize investments, and most interventions focus on traditional, “grey” infrastructure solutions. They are predominantly stormwater drainage networks and defenses against storm overflows. However, many cities in Argentina started to explore the potential of green-blue infrastructure, which uses ecosystems, soil permeability, and the natural retention of runoff to enhance infiltration or evapotranspiration processes, thus reducing surface flows. Green-blue infrastructure account for multiple benefits across environmental, social, economic, and public health sectors including improvement of habitat connectivity, enhancement of air quality, support of carbon sequestration, promotion of community identity and a sense of well-being, and reduction of energy consumption. As too many cities still have ‘their backs turned to water’, collaboration between water managers and urban developers is needed to promote a paradigm shift from water as a risk and nuisance to living with water and optimizing the added value (economic, social, and environmental) in urban development. The World Bank is a key and long-term partner to Argentina in the water sector. With a long track record of supporting the sector with bold interventions, including over 20 years of engagement in mitigating flood risks, support in addressing the poor environmental conditions of the Matanza-Riachuelo river basin, and expanding Water Supply and Sanitation services in low-income northern provinces (Norte Grande Region). The Bank is a trusted partner in the sector, helping the government overcome technical, institutional, financial, and legal challenges among others. The Bank supports infrastructure investments and provides global technical expertise to encompass institutional development, environmental management, and citizen engagement assisting the Government of Argentina (GoA) on its path toward the 2030 agenda and pursuing the Sustainable Development Goals (SDGs). The proposed project will build on these experiences and will help modernizing concepts, methodologies and strategies, also by shifting from gray infrastructure centered master plans for urban drainage, to an innovative approach increasing flexibility and robustness using better balances between grey, green and blue interventions. Jan 20, 2023 Page 3 of 16 The World Bank Climate Resilient Infrastructure for Urban Flood Risk Management (P178534) Innovative concepts like Nature Based Solutions, Sustainable Urban Drainage Systems and green/blue infrastructure will bring other benefits to the cities aside from flood risk reduction, including increased resilience to Climate Change and heat islands, improving the quality of life, providing spaces for recreation, improved air quality and creating ecological corridors improving biodiversity. The project will be part, as the first phase of a Multiphase Programmatic Approach (MPA) that is aligned with the World Bank Group's FY19–FY22 Country Partnership Framework (CPF) for Argentina (Report No. 131971–AR), and with the Performance and Learning Review (PLR) of the CPF dated May 3, 2022, approved by the Board on May 31, 2022. The PLR adjusts the CPF considering Argentina's current economic and social context while proposing to extend the CPF period for two years to align it with the county’s electoral cycle. Considering the adjusted PLR´s focus areas, the project fits under three focus areas. Focus area (i) “supporting inclusive recovery”, which includes improving living conditions reminiscent of the type of interventions to be funded under the project, mitigating the impacts of flooding, and improving urban areas with green/blue interventions providing better urban spaces in selected cities and reducing the vulnerability of population with improved strategies, plans, and norms. Focus area (ii) “strengthening service delivery to protect the poor and the vulnerable”, as the project focuses on the ten northern provinces with the lowest poverty-related socio-economic indicators. And focus area (iii) “supporting climate measures and long-term sustainable growth” as the project will directly increase cities’ resilience to extreme weather events induced by climate change and climate variability by building flood adaptation infrastructure and reducing vulnerability. The project also focuses on cities of high importance to the Argentinian economy. The MPA also builds on the Sendai Framework for Disaster Risk Reduction 2015-2030 and aligns with the National Plan of Public Works (Plan Nacional de Obras Públicas, PNOP) (2022) which aims to transform the country’s productive and development matrix by creating Public Disclosure jobs and promoting sustainable resource use, enhancing local capabilities, and promoting a regional redistribution of opportunities, to reduce regional inequalities. The MPA would support GoA to implement medium- and long-term plans for the water sector through a 10-year strategy totaling US$ 900 million. The proposed MPA includes a three-phase overlapping approach, with each phase using the Investment Project Financing (IPF) component. The MPA provides a mechanism to support (i) investments to improve existing infrastructure and develop new green-blue and grey interventions, (ii) design and implement non- structural interventions and long-term water resources management reforms, and (iii) implement a learning agenda to assist in the phase linkage to enhance local and national institutional capacity. These areas are aligned with PNOP’s policy programs. The proposed Program Development Objective (PrDO) for the 10-year MPA is the same as the PDO for the first phase ”reduce flood risk in selected cities and improve integrated urban flood risk management in Argentina, and act effectively in case of an eligible crisis or emergency.” This will be achieved by (i) efficiently blending and developing green-blue, and grey infrastructure, as well as non-structural interventions, (ii) improving flood risk multi-level governance, and (iii) increasing the population’s capacity to manage flood risk through an integrated river basin planning approach. The three IPF phases will incentivize inputs to obtain outputs in order to: (i) expand resilient infrastructure, (ii) improve operation efficiency, and (iii) strengthen water governance. The proposed project will be the Phase I of the MPA (US$ 200 million, the total amount will be financed through an IPF). This phase initiates with interventions identified by the GoA in the Norte Grande Region, Buenos Aires, and Santa Fe provinces, where most country’s vulnerable urban settlements are located. The Norte Grande Region concentrates about 23 percent of the country’s population. It presents acute territorial inequalities, reflected in the lack of basic Jan 20, 2023 Page 4 of 16 The World Bank Climate Resilient Infrastructure for Urban Flood Risk Management (P178534) service coverage (lowest in the country) and the high Social Vulnerability Index. Under this phase, identified no-regret interventions will be implemented addressing flood risks and climate resilience in selected cities. Furthermore, innovative green-blue solutions will be included, prepared and implemented. Phase I will also include the design of investments to increase readiness for the next phase. Additionally, capacity building and strengthening local and multi-level governance frameworks aim to align the national, provincial, and local authorities’ responsibilities and priorities). Implementing interventions, adopting innovative concepts, increasing capacity, improving the enabling governance environment will all lead to lessons learned for the intrinsic learning agenda and will support the development of guidelines on planning, design, implementation, O&M and M&E of structural and nonstructural interventions to improve efficiency, impact, and sustainability. As stated above, the Project Development Objective (PDO), (the Project being the first phase of the MPA), is to reduce flood risk in selected cities and improve integrated urban flood risk management in Argentina, and act effectively in case of an eligible crisis or emergency. The Project focusses on no-regret actions ready to be implemented in cities located in the most flood affected region of Argentina, the Norte Grande Region. Synchronously, the pipeline for phase two will be built with more innovative interventions within and beyond the Norte Grande Region. No-regret interventions in four cities (San Salvador de Jujuy, Salta, Resistencia and Pirané) have been identified by the GoA based on readiness. The selection of this batch is demand driven and is for cities that are often affected by floods with impact on poor and vulnerable communities. All subprojects to be selected afterwards must align with the MPA objectives, have technical designs that consider climate change scenarios, be economically viable and financially sustainable, with clear responsibilities for implementation, O&M and M&E, and ensure satisfactory environmental and social management following the Environmental and Social Management Framework (ESMF). All subprojects should comply with a moderate risk rating. Public Disclosure Therefore, interventions involving large-scale resettlement (i.e., more than 50 households) will not be selected. The project will also support Technical Assistance (TA) activities to develop and improve the use of non-structural interventions to be implemented in cities selected by the National Government based on exposure, socio-economic vulnerability, and potential impact. These interventions will further increase the resilience to extreme climate events exacerbated by climate change. These interventions include the development of risk management strategies (analysis of exposure and vulnerability, designs, development of technical norms, emergency plans, and meteorological monitoring systems, among others) and capacity building activities to reduce vulnerability. A guidance document will also be prepared, sharing expertise and experiences (lessons learned) with cities in and outside the country. This activity will be developed by the Project Implementing Agency, with the support of external experts as necessary, once an appropriate level of Project implementation has been reached in order to capture all relevant aspects for properly replicating activities. The Project will have four components. Component 1. Climate resilient infrastructure for flood risk mitigation and adaptation in preidentified cities (US$179.5 million). This component will support technical design and implementation of structural interventions to improve people’s resilience to flood risks also considering the effects of climate change in preidentified cities. Structural interventions under this Project focus on (i) rehabilitating/constructing defense works in urban areas with high vulnerability to flooding damage; and (ii) pluvial drainage works to reduce the area affected by storms. These civil works will tackle identified vulnerabilities derived from flooding events such as reduction of asset and welfare losses, transport system connectivity, etc. Interventions will be integrated in spatial planning, increasing the added value of water in urban areas. Jan 20, 2023 Page 5 of 16 The World Bank Climate Resilient Infrastructure for Urban Flood Risk Management (P178534) This component consists of two Subcomponents. Subcomponent 1.1. Evidence-based flood risk mitigation measures in preidentified cities (US$138.75 million). This subcomponent will carry out demand-driven no-regret interventions consisting of rehabilitation, upgrading, reconstruction, or construction of new hydraulic infrastructure for urban drainage, and flood risk mitigation (e.g., primary drainage channels, secondary and tertiary drainage networks, flow control infrastructure, storage areas, defenses, embankments, pumping stations, among others). Subcomponent 1.2. Innovative, integral, and multipurpose flood risk mitigation interventions (US$40.75 million). These interventions will focus on optimizing existing grey interventions, and those developed under Subcomponent 1.1. Within the comprehensive matrix of green-blue infrastructure options, this Subcomponent will include the development of retention areas, linear parks, green roofs, and permeable pavements, amongst others. Such green- blue interventions allow for climate adaptation and resilience. Regulating extreme temperatures (e.g., moderating heat island effects in urban areas), acting as multipurpose storage infrastructure (which is valuable during flooding events and, prolonged drought periods), and supporting GHG emissions reduction by limiting cement production and consumption, and capturing CO2. Furthermore, these solutions could support the creation of urban green corridors adding to the integration, maintenance, and recovery of urban biodiversity, thus, becoming pillars for new urban development opportunities (improved mobility within city limits, quality urban ecosystems and new public spaces). Component 2. Capacity building and vulnerability reduction (US$15 million). This component will support local, provincial, and national institutions’ capacity building for increased resilience and robustness towards climate risk preparedness and improved flood risk management. Increasing resiliency requires structural mitigation measures and non-structural interventions to reduce vulnerability reduction by enhancing risk preparedness and recovery capacity. Public Disclosure This component will focus on non-structural actions, funding among other studies, plans, strategies, revision of regulations and laws, environmental and gender assessments, urban development and solid waste management plans, and any other tool necessary for flood risk management, including strategies to enhance women’s involvement in the development of disaster prevention, risk reduction, and response plans. Trainings, participatory processes, communication campaigns, data collection, and dissemination are the core activities. This component will also focus on strengthening policymakers’ capacity for integrated flood risk management using a river basin approach where possible to increase efficiency and allow for better prioritization. This also includes provision of training and development of tools to guide involved stakeholders. These will help authorities in the development and update of existing water management strategies, drainage master plans, as well as project development using a more holistic basin approach. Preidentified sustainable water management plans correspond to the cities Formosa and Clorinda, in Formosa Province. Others can be identified during the implementation phase of the project. Overall, activities executed under this component aim to support authorities by strengthening their institutional capacity, identifying roles and responsibilities, that ultimately facilitate the development and execution of investments in later phases of the MPA. Component 3. Project Management (US$ 5.5 million). This component will provide administrative and operational support to the Implementing Agency for the administration, monitoring, coordination, and supervision of project’s activities, including environmental and social management aspects, independent audits, and other related activities. It will also support the collaboration between provinces and cities, and it will finance participatory and interactive design processes with key stakeholders. Component 4. Contingent Emergency Response Component - CERC (US$ 0 million). This component is a contingent financing mechanism available to GoA to access immediate Bank financing to respond to an eligible crisis or Jan 20, 2023 Page 6 of 16 The World Bank Climate Resilient Infrastructure for Urban Flood Risk Management (P178534) emergency, defined as “an event that has caused, or is likely to imminently cause, a major adverse economic and/or social impact associated with natural or man-made crises or disasters.” The mechanism to trigger the CERC will be established in the CERC Manual, which will detail the applicable fiduciary, environmental and social, monitoring, reporting, and any other implementation arrangements necessary for the execution of the proposed activities. In case of an event triggering the component, a reallocation of funds will be introduced to loan disbursement categories, to fund the activities and respond to the emergency. The implementation agency for the CERC will be determined in the CERC Manual. 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 proposed Project´s physical interventions would be located in urban and peri – urban areas in selected cities. The Project, as the first phase of the MPA, will focus on the Norte Grande Region (which comprises the provinces of Catamarca, Corrientes, Chaco, Formosa, Jujuy, La Rioja, Misiones, Tucumán, Salta and Santiago del Estero) and on the provinces of Buenos Aires and Santa Fe, where most of the country’s vulnerable urban settlements are located. The Norte Grande Region concentrates about 23 percent of the country’s population. It presents acute territorial inequalities, reflected in the lack of basic service coverage (lowest in the country) and the high Social Vulnerability Index, according to Plan Nacional de Obras Públicas (2022). This would involve a moderate environmental sensitivity of the project location, as it will be implemented in areas of already transformed land. Potential pre-selected cities of Salta and San Salvador de Jujuy as well as the metropolitan area of Resistencia are densely populated, which means Public Disclosure long-standing anthropogenic physical modifications. Although Pirané is a smaller city, its urban and peri-urban settings are also of moderate sensitivity. The social impact is expected to be significantly positive considering the target population. The rate of urban poverty in the country reached 37.3 percent in the second semester of 2021 (childhood poverty 51.4 percent), and there is evidence that floods disproportionally affect the poor. Floods damage infrastructure and interrupt socio economic activities in cities, including those of small and medium enterprises, the main employment source in Argentina. Urbanization processes started with low or little planning, and hydrological/hydraulic considerations are often forgotten. As a result, soil’s absorption capacity diminishes (with little open green spaces) and storm water run-off dramatically increases as this is often stray jacketed in canals and insufficient management of solid waste blocking the drainage. At the same time, unplanned urban expansion and informal settlement often takes place in natural flood zones of rivers increasing the exposure of already vulnerable communities. Flooding is a major natural hazard in Argentina that poses a developmental challenge with large socio-economic impacts. 60 percent of natural disasters in the country are floods, and have resulted in 95 percent of economic losses by natural disasters for the affected populations. About 70 percent of the Argentine population lives in the La Plata river basin. This area has the highest rainfall in the country, and combined with the high-water tables, the riverine provinces are recurrently exposed to flooding. Records state that 14.2 million Argentinians live in flood-prone areas. According to the Water Security Diagnostic for Argentina, about 28 percent of Argentina´s population is exposed to flooding, with a probability of recurring once every 100 years. Moreover, 50 percent of the affected population is poor, while women and children are among the highest risk groups. Jan 20, 2023 Page 7 of 16 The World Bank Climate Resilient Infrastructure for Urban Flood Risk Management (P178534) In the prioritized Norte Grande Region provinces, there is considerable underinvestment in infrastructure and mitigation measures to prevent flooding. Furthermore, it is known that this is even underrepresented and that the positive impact of the vulnerable groups will be substantial with respect to flood risk management. In this context, local communities that live nearby the site locations will benefit from the project’s investments, so they can access project benefits fully. A gender-perspective design is being considered within the participatory process. The Stakeholder Engagement Plan (SEP) of the Project incorporates a mapping of relevant actors and an engagement strategy to guide the interactions throughout the Project life cycle, with special attention in the inclusion of vulnerable groups. Vulnerable groups have been considered in Project´s design. In the example of the pre- identified subproject in the city of San Salvador de Jujuy (Canal Alvarado), people with disabilities are expected to experience positive impacts, as the interventions will improve accessibility, allowing new crossings with ramps. D. 2. Borrower’s Institutional Capacity The Project Implementing Agency will be composed of a technical unit under the Infrastructure and Water Policy Secretariat (IWPS) and a fiduciary unit under the General Directorate of Sectorial and Special Programs and Projects (DiGEPPSE by its initials in Spanish), both within the Ministry of Public Works. The unit at IWPS will be in charge of the coordination and technical implementation of the program, coordinating with the provincial and municipal governments, while the DiGEPPSE is in charge of the administration as well as the budgetary, environmental and social, financial and legal issues. At present these implementing arrangements are used in several programs financed by multilateral development banks, including the current WB operation Plan Belgrano Water Supply and Sanitation Services Development Project (P125151) and previously the already closed Norte Grande Water Infrastructure Project Public Disclosure (P120211), both under WB´s Safeguards Policies. As mentioned, within both governmental units, the environmental and social responsibilities are carried out by DiGEPPSE that has shown good capacity to work with safeguards. Although DiGEPPSE has not worked yet with WB projects under the Environmental and Social Framework (ESF) it is already working in one project with the IaDB’s new Environmental and Social Policy Framework. Specifically, for social and environmental management the DiGEPPSE has a team composed of 5 environmental specialists (three senior and two junior), 2 social specialists, 2 health and safety specialists and 1 general E&S coordinator. Given that this will be the first project of the Ministry of Public Works under the Bank's ESF, an assessment was carried out prior to appraisal, to determine any additional actions needed to strengthen the borrower´s capacity to meet the objectives of the Environmental and Social Standards (ESS). In general terms, it was found that the current Environmental, Social, Health and Safety (ESHS) team of DiGEPPSE, with the support of an additional specialist on communication / public relations that belongs to the same Directorate, has the required capacity for the management of the Project, which is rated as Moderate for the combined Environmental and Social Risk. There will be coordination/liaison units at provincial and city levels, mainly with the Provincial Ministries of Public Works (or equivalent) and, if required, municipalities. Environmental and social management general responsibilities (including general oversight of works execution -to be performed by contracted construction companies and supervision firms-) will remain in DiGEPPSE, which will coordinate activities with local entities and provide technical assistance as necessary. Nevertheless, capacity strengthening of national and subnational entities to ensure compliance with the WB´s standards is foreseen, and capacity building activities as reflected in the Environmental and Social Commitment Plan of the Project will be funded under Component 3. Jan 20, 2023 Page 8 of 16 The World Bank Climate Resilient Infrastructure for Urban Flood Risk Management (P178534) II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate Environmental Risk Rating Moderate Based on information available from preidentified physical investments and the envisioned similar ones to be selected during implementation, it is concluded that the nature of project interventions is relatively simple, and the adverse environmental risks and impacts on human populations or the environment they could cause are, in principle, not considered to be significant. The scale of the project physical interventions is medium to low, with moderate environmental sensitivity of implementation sites as they would be located in urban and peri-urban areas of selected cites, some of them densely populated (for example, pre-selected cities of Salta and San Salvador de Jujuy and metropolitan area of Resistencia), i.e. in already transformed land. In that sense, no valuable ecosystems or habitats (legally protected and internationally recognized areas of high biodiversity value) are also expected to be affected. The magnitude of the expected adverse environmental impacts preliminarily identified is low or moderate and their spatial extent is localized. No long term, permanent, irreversible, unprecedented or complex adverse impacts are expected; expected risks and potential adverse impacts preliminarily identified so far will be site-specific, temporary, predictable and/or reversible, and can be mitigated through readily available measures, considering the mitigation hierarchy. These include e.g. alteration of everyday urban traffic, pollution by particulate matter, gaseous emissions, noise and vibration related to the movement and operation of vehicles and machinery, soil excavation, waste generation of different types, issues with project workers and/or public health and safety, accidental damage to objects and interference to other public services. In principle, there is low probability of serious adverse effects to Public Disclosure human health, being the current COVID-19 pandemic (and uncertainties on its evolution) and the recurrent dengue epidemic the main related risks to be managed, in addition to standard working health and safety risks, usually present in this kind of urban infrastructure projects. Social Risk Rating Moderate The social risk rating is classified as Moderate (M). The preliminary identified social risks and impacts are few and expected to be low to moderate and easily managed through either sub - project design and construction planning (avoidance) or through appropriate mitigation measures included in the E&S risk management instruments. As subprojects may include minor land acquisition, and permanent physical or economic displacement, some risks associated with ESS5 are considered. Also temporary economic displacement is expected due to restriction of access to businesses during construction and households may experience minor negative impacts associated with restriction of access during construction. However, these affected parties will later experience positive impacts when works are finished and flood risks reduced and urban settings improved. In terms of vulnerable groups, such as local communities with high poverty rates, risk of exclusion is low, given that works are proposed in areas where all can benefit from the project’s results. 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: Jan 20, 2023 Page 9 of 16 The World Bank Climate Resilient Infrastructure for Urban Flood Risk Management (P178534) This standard is relevant. Component 1 of the project will include physical interventions on Integrated Urban Flood Risk Management, comprising flood mitigation works, including green and blue infrastructure interventions, and other related urban improvement infrastructure. Four potential subprojects have been pre-identified in the following four pre-selected cities: Pirane; San Salvador de Jujuy; Salta; and Resistencia. Other subprojects and site locations will be identified during project implementation Component 2 of the project will fund strategies, plans, and studies that help address urban flood risk management issues. This component will also finance the update of existing flood risk management strategies, or drainage master plans, as well as the development of projects. The requirements of relevant ESSs will be considered for all technical assistance to be provided; the Terms of Reference (TORs) for such activities will be reviewed and approved by the Bank to ensure that all pertinent provisions, including stakeholder engagement aspects in line with ESS 1-10, are fully incorporated in such TORs, in a manner acceptable to the Bank. Flood risk management strategies will be assessed (for risks and any downstream implementation impacts, as relevant) through social and environmental assessments, hydrodynamic modelling and any other relevant study, as needed, that will also be financed under this Component. For works under Component 1, an Environmental and Social Management Framework (ESMF) will be developed for the Project proportionate to the risks. It will be built on the guidelines and procedures that are being and were applied, respectively, to the Plan Belgrano Water Supply and Sanitation Services Development Project (P125151) and the Norte Grande Water Infrastructure Project (P120211). There are no common areas directly involved in these previous WB Projects and in the new proposed one that have been identified so far. However, it is foreseen to explore any synergies should future subprojects overlap with the Plan Belgrano/Norte Grande Water subprojects Public Disclosure and, in any case, take advantage of the experience gained in terms of technical designs of works and corresponding environmental and social risk management. In general terms, the ESMF will include a screening tool for defining the type and scope of the Environmental and Social instruments applicable to the different interventions, based on specific typologies, scale and particular characteristics of the implementation sites, and their associated level of risks; subprojects with substantial or high risk will not be financed (in that regard, the ESMF will include an Exclusion List that will describe the type of subprojects and/or activities that will be ineligible to receive financing under the Project). In addition, the ESMF will identify associated risks, potential impacts and corresponding mitigation measures to be considered in the development of the specific subproject instruments. For that purpose, it will also include models of Terms of Reference (TORs) for the development of site-specific Environmental and Social Impact Assessments (ESIAs) and Environmental and Social Management Plans (ESMPs), as well as models / table of contents of ESIAs and ESMPs. The drafting of the ESMF will incorporate inputs from relevant stakeholders on risks and mitigation measures received from the preparation-stage discussions on the Stakeholder Engagement Plan (SEP). A draft ESMF, including the above mentioned stakeholders’ preliminary inputs, will be disclosed no later than 60 days after the Effective Date. It will then be subject to a broader consultation as it is defined in the SEP and finalized no later than 120 days after the Effective Date and before initiating the preparation of any subproject to be selected during implementation, whichever comes first. The final version of the ESMF will consider all feedback received from relevant stakeholders. For interventions pre-identified during preparation and for which preliminary designs have been developed (to date, “Proyecto Integral Eje del Canal Alvarado – Provincia de Jujuy” and “Proyecto Acondicionamiento y Refuncionalización del Canal Alvear y obras complementarias – Provincia de Salta”) the Borrower prepared the corresponding TORs for the ESIA and ESMPs, acceptable to the Bank. Such TORs include a brief summary of the Jan 20, 2023 Page 10 of 16 The World Bank Climate Resilient Infrastructure for Urban Flood Risk Management (P178534) interventions, estimated risks and mitigation measures, and were disclosed for purposes of stakeholder engagement in country and in the WB external website on November 18, 2022. Consultation processes at the local level of these TORs are being currently planned; updated TORs will incorporate feedback received from relevant stakeholders as corresponds. Once finalized, the pertinent local entities will launch the procurement process to develop the corresponding ESIAs. For any selected subproject, ESIAs and/or ESMPs will be developed, disclosed, consulted, revised to reflect stakeholder inputs, finalized, adopted and disclosed before the bidding documents to procure the related works are put to tender (in the case of pre-identified interventions, ESIAs and/or ESMPs will be developed on the basis of the abovementioned final TORs). The bidding documents will incorporate site-specific ESMPs. The Borrower has also prepared a draft Stakeholder Engagement Plan (SEP), in line with ESS10.The SEP includes a stakeholder mapping, stakeholder information disclosure and consultation guidelines and principles for ensuring meaningful consultations and participation of all stakeholders, with differentiated strategies to reach the most vulnerable, and the details of the Project’s grievance mechanism (including SEA/SH grievances following a survivor centered approach). Details on the SEP are presented under ESS10. The Borrower will prepare and disclose an Environmental and Social Commitment Plan (ESCP) acceptable to the Bank. The ESCP will include all necessary actions and measures that the Borrower will need to undertake during preparation and implementation and their timeframes, to comply with the ESSs, including monitoring and reporting arrangements. A draft ESCP has been disclosed prior to appraisal and will be finalized by negotiations. Public Disclosure ESS10 Stakeholder Engagement and Information Disclosure This standard is relevant. The Ministry of Public Works has prepared and disclosed a draft SEP before appraisal. This draft SEP involved a preliminar, focus consultation that took place on December 13th, 2022 (see some details below). It will be broadly consulted and finalized no later than 60 days after the Effective Date. The draft SEP includes project information to allow stakeholders, including IP representatives, to understand the risks and impacts of the project, and potential opportunities. The SEP also describes the Project’s grievance mechanism. Among relevant stakeholders considered in the SEP, households and businesses have been identified that will experience minor and temporary social impacts associated with restriction of access due to construction (some subprojects may include minor land acquisition, and permanent physical or economic displacement - see ESS5). The SEP seeks to ensure meaningful and inclusive engagement with stakeholders, particularly the most vulnerable groups, such as local communities with high poverty rates in the Project areas, urban indigenous peoples (see ESS7), elderly, women, LGBTIQ+ and people with disabilities. By reaching to representatives for these groups, both Governmental and Civil Society Organizations (OSC), the SEP incorporates specific provisions for promoting engagement of the most vulnerable stakeholders. Stakeholders identified at the national level for early consultarions during preparation include OSCs working on environmental and public policy issues, the Red Cross, national universities, civil works trade unions and bussines chambers that are part of a public works observatory, provicial water authorities, federal councils of water and Jan 20, 2023 Page 11 of 16 The World Bank Climate Resilient Infrastructure for Urban Flood Risk Management (P178534) environment and public areas working with identified vulnerable groups. Following the provision of the draft SEP, a focus consultation on basic characteriscs of the projects, including foreseen activities, preliminarily identified risks and mitigation measures to be applied, took place on December 13th, 2022 (virtual meeting on that day, followed by three days for the participants to submit additional feedback or questions via email, from December 14th to 16th, 2022). This consultation involved relevant institutional, academia and civil society stakeholders, including the Ministry of Women, Genders and Diversity as mentioned above. Main conclusions can be summarized as follows: a) the Project was positively valued by participants, who highlighted the importance of generating spaces for exchange and participation, as well as the fact that the Project aims to mitigate water risks through gray, green and blue infrastructure within the framework of Nature-Based Solutions; b) participants emphasized, among others, the importance of: i) the concept of resilience for these works, ii) early warning systems and community-based forecast; iii) strengthening of institutions, at the different government levlels, relevant to Project objectives and activities; c) no adverse impacts or risks different from those preliminarily presented at this stage were identified; d) no recommendations were made regarding the GM presented, the contact channels provided as well as the information disclosure and consultation strategies outlined. Feedback received from these activities is informing Project design. The SEP includes guidelines for the development of Community Engagement Programs as part of the site specific ESMPs. Site specific Community Engagement Programs will include mapping of relevant stakeholders, a plan for consultations with them and a communication and dissemination of information strategy to guide the interactions with representatives of relevant groups (including specific provisions promoting engagement of the most vulnerable among them). The project design also includes working closely with vulnerable communities to develop workshops, guidelines, and community-based disaster management plans (e.g. Early Warning Systems). A citizen engagement Public Disclosure approach is explored in order to create ownership of investments and to prepare civil society in general on awareness and flood risk preparedness. Preliminary, the beneficiary feedback indicator is the following: communtiy satisfaction with the participatory process (e.g. satisfaction surveys measures after consultations). The site specific Community Engagement Programs will also ensure that a Grievance Mechanism (GM) is in place for addressing concerns and grievances in each sub - project during the Project implementation (including SEA/SH grievances following a survivor centered approach). The Ministry currently has GM procedures in place that are being applied to the different projects that they implement and monitor. It is a system that is applied by the contractor, supervised by the independent inspection firm and monitored by DiGEPPSE. The SEP also includes a GM at the Project level and the DiGEPPSE is developing a web form for grievances within their web page that will be ready before Project effectiveness. 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 This standard is relevant. The Borrower will assess the national labor framework (and any sectoral/subnational particular regulation as the case may be) applicable to the specific sector and Project activities to identify any gaps with respect to ESS2, and determine how these gaps are filled under the Project in compliance with ESS2. No detailed information is currently available on the size and type of the labor force to be employed under the project. However, it is anticipated that most of the labor force will be direct workers and contracted workers, as Jan 20, 2023 Page 12 of 16 The World Bank Climate Resilient Infrastructure for Urban Flood Risk Management (P178534) defined by ESS2. At this stage it is also unknown where such labor might be sourced from, but it is anticipated that a large number of workers will be locally based. The key labor and working conditions risks are related to: (i) potential discrimination and limited equal opportunity in accessing jobs; and (ii) lack of OHS measures for Project Workers, including measures to mitigate the risk of a spread of the COVID-19 and Dengue viruses in the project’s workplace. Risks for direct workers who will perform their tasks mainly in indoor environments include some physical risks (such as falls; falling objects; blows, cuts or punctures; ventilation and air circulation; lighting; etc) and ergonomic risks. Occupational, health and safety (OHS) risks for contracted workers are the usual ones for this kind of infrastructure projects and will be addressed through measures aligned, as applicable, with the Occupational Health, and Safety Guidelines described as part of the World Bank Group “General Environmental, Health, and Safety Guidelines" (EHSGs), which may be complemented by the “Water and Sanitation” EHSGs (included as part of the infrastructure guidelines), although water and sanitation works are not a relevant component of pre-identified/foreseen future subprojects to be financed by the Project. Protocols to deal with COVID-19 and dengue risks should be developed and included in the ESMPs to be implemented among Project workers at a subproject level. The type of Project Workers, specific measures to address OHS risks, the terms and conditions of employment of Project Workers, considerations on SEA/SH, as well the details of a Grievance Redress Mechanism (GRM) dedicated to address Project workers grievances, will be included in the Labor Management Procedures (LMP) to be developed, and in the code of conduct that will be part of it. The LMP will pay particular attention to promote non-discrimination in the recruitment of Project Workers, and will endeavor to foster the recruiting of women and disabled people, where possible. The LMP will be prepared no later than 60 days after the Effective Date, or prior to the recruitment of any Project Worker, whichever comes first. Public Disclosure ESS3 Resource Efficiency and Pollution Prevention and Management This standard is relevant. The project is expected to have some low to moderate environmental risks and potential impacts under Component 1. Foreseen physical interventions would involve consumption of raw materials (e.g. metals, wood, concrete, water, etc.) and generate potential air pollution (particulate material), noise, and risks related to punctual environmental pollution events in case of spills or inadequate waste management. Some construction works may require preparation of integrated pest management plans, particularly to eliminate rats and mosquitoes (dengue vectors); if so, such integrated pest management plans will be included in the site-specific ESMP. Any use of pesticides should follow applicable good practices on integrated pest management. The Project should not finance or allow use of pesticides of categories not permissible under the ESS3 or by national legislation. The Environmental and Social instruments (ESIAs, ESMF) will compile legal requirements (at federal, provincial and local level as applicable) and management measures to address identified risks and potential impacts, including for waste management and pollution prevention during construction and operational stages, which will inform the preparation of ESMPs, as applicable. No dredging activities are foreseen for flood control as part of the Project. ESS4 Community Health and Safety This standard is relevant. Infrastructure activities under Component 1 would take place in urban and periurban areas and in public space. These activities may involve minor community health and safety issues during works execution, such as risk of elements falling from heights, poor signage or fencing on works sites with excavations, etc. The E&S Jan 20, 2023 Page 13 of 16 The World Bank Climate Resilient Infrastructure for Urban Flood Risk Management (P178534) instruments further identify and assess these risks and potential impacts that need to be addressed for the proper community health & safety management. Appropriate measures will be included in the site specific ESMPs. Movement of workers might impose risks to the communities, particularly under the COVID-19 pandemic context, and the recurrent dengue epidemic. The prevention of disease spreading to the communities will be considered in the ESMPs. Impacts of Project works on local traffic and road safety (e.g. due to the temporary deviation of traffic) will be assessed and mitigation measures will be included in the ESMPs. The Borrower will identify and implement measures to address emergencies that might arise from the construction of the projected works (e.g. fire, explosions, leaks or spills), and related emergency procedures will be prepared and included in the site specific ESMPs. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement This standard is relevant. Subprojects may include minor land acquisition, and physical or economic displacement. Subprojects considered in the sample are not expected to involve resettlement and ESIAs will assess the need to develop specific RAPs. Other subprojects to be selected during Project implementation might include minor scale resettlement. It is known that there are situations where informal settlements are located near streams that increase flooding risks for households and reduce the drainage capacity of the natural system, particularly in urban and periurban areas that are the target ones of the Project physical interventions. Provided resettlement is necessary for this particularly vulnerable population, every activity will be conducted in accordance with ESS5 prior to any work. The stakeholder engagement process at the subproject level, as described in the SEP, will ensure informal dwellers will be taken into consideration as one specific vulnerable group and participatory processes will seek their inclusion. Public Disclosure Large scale resettlement (i.e. more than 50 households) will not be considered for financing under this Project; as such, this condition will be included in the Exclusion List that will be part of the ESMF. To cover any potential situation involving the type of impacts considered by ESS5, a draft Resettlement Policy Framework (RPF) was developed by the Ministry of Public Works based on the frameworks developed for the Plan Belgrano Water Supply and Sanitation Services Development Project (P125151) and Norte Grande Water Infrastructure (P120211). The RPF includes guidelines to prepare site-specific Resettlement Action Plans (RAP). The acquisition of IPs land is excluded under this Project. A draft version of the RPF was prepared and disclosed prior to appraisal; it will then be consulted and finalized no later than 60 days after the Effective Date. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources This standard is not currently relevant. As the planned interventions will be carried out in areas that have already been anthropized this standard is not deemed relevant. That is, the project will not impose any material threat to the protection, conservation, maintenance or restoration of natural habitats, biodiversity values or ecosystem services nor involve the use of living natural resources either. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities This standard is currently not relevant. While predecessors Norte Grande Water (P120211) and Plan Belgrano (P125151) works directly within Wichi communities in the rural parts of Chaco, the scope of this project is only urban and peri urban. Although there are indigenous people who have migrated to urban areas in search of economic opportunities, that are present in cities some of the pre-identified subprojects (Resistencia and Pirané), none of these Jan 20, 2023 Page 14 of 16 The World Bank Climate Resilient Infrastructure for Urban Flood Risk Management (P178534) meet the 4 criteria in ESS7 according to the Bank’s assessment (no land or collective attachment including footnote 7 in paragraph 9). However, if during implementation the presence of IP is detected in any subproject, then, a site- specific Indigenous Peoples Plan (IPP) will be prepared in accordance with the requirements of ESS7, consulted and disclosed. ESS8 Cultural Heritage This standard is relevant. Component 1 will involve construction that might require excavations, demolition and soil movements, so there is a chance of finding physical cultural resources. A “chance finds procedure” in line with ESS8 and provisions to manage any potential impact thereof will be included in the ESMF and subsequent ESMPs. ESS9 Financial Intermediaries This standard is not currently relevant. There are not Financial Intermediaries involved in Project´s activities. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways Yes Proposed Project interventions will be located in urban and peri-urban areas in the Norte Grande Region, the provinces of Santa Fe and Buenos Aires and concern the waters of the La Plata River system and its tributaries, including the Paraguay, Paraná, Pilcomayo, and Uruguay Rivers. Given the nature and location of proposed Project Public Disclosure activities, it is considered that these investments will not adversely affect the quality or quantity of water flows of the La Plata River system to other riparians, or adversely affect other riparian’s possible water use. However, the Legal Policy OP 7.50 on International Waterways applies to the Project and, following the corresponding clearances process, the notification to the involved riparian countries Bolivia, Brazil, Paraguay and Uruguay was submitted by the Bank (on behalf of the GoA) on December 20th, 2022. The team is now awaiting the responses, if any; no response has been received so far. 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 World Bank Jan 20, 2023 Page 15 of 16 The World Bank Climate Resilient Infrastructure for Urban Flood Risk Management (P178534) Contact: Nicolaas Johannes Placidus Maria Title: Senior Water Resources Management de Groot Specialist Telephone No: 5260+3619 / 54-11-43160619 Email: kdegroot@worldbank.org Contact: Maria Catalina Ramirez Title: Senior Water Supply and Sanitation Specialist Telephone No: 5260+3712 / 54-11-4316-9712 Email: mramirez1@worldbank.org Borrower/Client/Recipient Borrower: Ministry of Economics Implementing Agency(ies) Implementing Agency: Public Works Ministry V. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Public Disclosure Web: http://www.worldbank.org/projects VI. APPROVAL Task Team Leader(s): Nicolaas Johannes Placidus Maria de Groot, Maria Catalina Ramirez Practice Manager (ENR/Social) Maria Gonzalez de Asis Cleared on 20-Jan-2023 at 11:44:23 GMT-05:00 Jan 20, 2023 Page 16 of 16