Page 1 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information Date prepared/updated: 08/03/2010 Report No.: 56055 1. Basic Project Data Original Project ID: P106663 Original Project Name: Sao Paulo Feeder Roads Project Country: Brazil Project ID: P118077 Project Name: Sao Paulo State Feeder Roads Additional Financing Task Team Leader: Eric R. Lancelot Estimated Appraisal Date: January 12, 2010 Estimated Board Date: August 3, 2010 Managing Unit: LCSTR Lending Instrument: Specific Investment Loan Sector: Roads and highways (100%) Theme: Infrastructure services for private sector development (100%) IBRD Amount (US$m.): 326.78 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: Borrower 82.00 82.00 Environmental Category: B - Partial Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and Emergencies) Yes [ ] No [X] 2. Project Objectives The Project development objective is to improve the efficiency of the paved municipal road network. Efficiency will be improved as a result of improvements to the institutional framework used by the Borrower in four key areas to deliver adequate transport conditions to users (planning, environmental licensing, participation of private sector, and execution), combined with improvements in the condition of the paved municipal road network. 3. Project Description The proposed AF is a combination of anticipated cost overrun and scale up of the Parent Project's civil works component. The AF will finance: Part 1 (a) Feeder Roads Rehabilitation Works (i) Financing anticipated cost overrun of works to be financed under the Parent Project covering approximately 700 km of eligible road sections; and (ii) Carrying out of rehabilitation works on approximately 1,200 km of additional specific sections of the Borrower's municipal paved road network not included in the Page 2 Parent Project, that have been identified as eligible road sections under the 4 first phases of the Pró-Vicinais Program, including, inter alia: (A) rehabilitation of existing road bases and surfaces, as well as of bridges; (B) rehabilitation of shoulders to protect the shoulders' surfaces from erosion and improve the driving conditions; (C) road safety improvements, including horizontal traffic signaling, and (D) rehabilitation and upgrading of drainage systems; (b) Project Management Consolidating DER-SP's capacity to manage its road investment programs, including the Pró-Vicinais Program. 4. Project Location and salient physical characteristics relevant to the safeguard analysis Sao Paulo is today one of, if not the, most densely populated and intensively used territory in Brazil. With a land area of 248,146 square kilometers, and a population of almost 39 million, Sao Paulo's land use is characterized by vast agricultural area, covering (74% of the State s area) dominated by pasture and cash-crops and by important conurbations (e.g. Sao Paulo, Campinas and Baixada Santista). The works under the Program will be carried out on municipal roads in the rural or peri-urban areas where the main natural features of the original landscape have already being modified by economic activity. The rehabilitation and maintenance works will be carried out on the existing platform of the feeder roads, mostly to the pavement, with interventions within the rights-of-way (ROW). 5. Environmental and Social Safeguards Specialists Mr Jason Jacques Paiement (LCSSO) Mr Flavio Chaves (LCSTR) 6. Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X Page 3 II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: As mentioned above the project interventions will consist of (A) rehabilitation of existing road bases and surfaces, as well as of bridges; (B) rehabilitation of shoulders to protect the shoulders surfaces from erosion and improve the driving conditions; (C) road safety improvements, including horizontal traffic signaling, and (D) rehabilitation and upgrading of drainage systems. The rehabilitation and maintenance works will be carried out on the existing platform of the feeder roads, mostly to the pavement, with interventions within the rights-of-way (ROW). The project will not entail any potentially large scale, significant and/or irreversible impacts. Most, if not all, of the Project's impacts will be site specific, related to the works phase, and will not significantly affect human populations or alter environmentally fragile areas. Due to the nature of the projects interventions no road realignments are foreseen in the project. Hence, no land acquisition is expected to occur. Potential negative direct impacts include: (i) interference with natural areas; (ii) degradation of areas at the sources of materials for works; (iii) construction accidents; and (v) noise and vibration caused by the works. For all the above mentioned impacts appropriate mitigation measures exist and are easy to implement. Screening and scoping requirements for the potential environmental impacts of municipal roads rehabilitation are set forth in specific state laws (Resolução SMA 33/02 - http://www.cetesb.sp.gov.br/licenciamentoo/legislacao/estadual/resolucoes/2002_Res_S MA_33.pdf) which are consistent with OP 4.01. The environmental licensing of road works and mitigation measures are lengthy detailed in the specific environmental construction norms and manuals ( for rehabilitation works cf. PSGA-001 at http://www.der.sp.gov.br/documentos/manuais_tecnicos/manual_meio_ambiente.aspx.) Compliance with these norms is an obligation of contractors and is explicitly mentioned in works contracts. Compliance with social and environmental standards is verified by routine inspections by environmental supervision firms. Under these supervision contracts, DER-SP Environmental Advisory Unit is provided with monthly reports on environmental quality of works. Rehabilitation of paved roads will also generate positive social and environmental impacts. In addition to expected positive outcomes related to reduced transportation costs and increased accessibility to markets and public services, the project will: (i) contribute to improve road safety conditions; and (ii) by correcting road drainage, help avoiding erosive processes. Based on the assessment prepared by DER-SP, the Additional Financing will not have impacts on indigenous populations or strictly protected areas. It should be noted that none Page 4 of the works under the Program (phases 1, 2 and beginning of phase 3) involved any involuntary resettlement or interference with indigenous population and indigenous areas. Additionally, the project will not result in any significant impact or conversion of natural habitats. The project works which might occasionally take place on water crossings and may affect minor stretches of riparian vegetation, require specific authorizations by the State institutions in charge of Environmental and Hydrologic management (CETESB and DAEE). These authorizations set forth the mitigation or compensation mechanisms to be complied with by contractors. Compliance with these requirements is monitored regularly by the Environmental Supervision contracted by DER. The environmental assessment for the Parent Project has been updated for the Additional Financing, including the additional roads to be rehabilitated. In addition, a posteriori evaluation by the Bank of the handling of social and environmental questions for the works executed under the program's previous phases, including the Parent Project, concluded that such handling was being undertaken in an appropriate fashion. The evaluation showed in particular that no environmental or social issue occurred in the implementation of the previous phases of the ProVicinais program and the Borrower has performed satisfactorily on managing safegard compliance in the previous phases. The same level of performance is expected under the AF, which deals with the same nature of works and the same nature of social and environmental management structure. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: Indirect and cumulative impacts, such as land cover land use changes at the roads environs are expected to be negligible, as the municipal roads benefiting from the Project are located in one of the most intensively used productive landscapes and densely populated areas in Brazil. Additionally, the roads have been paved for long time. In Sao Paulo the natural ecosystems that once stood where now lay the actal ROW and sites associated with civil works have already been modified by colonization (which begun the 16th century) and development long ago: road construction date mostly from the 1950s and 1960s while paving occured mainly in the 1980s. It is not expected that the recovery of the roads' initial conditions will significantly affect land cover land use changes at the roads environs and no significant improvement of road accessibility is expected. Moreover, the proposed improvements in drainage slopes, retaining walls and other structures are expected to generate positive impacts regarding the prevention of erosive processes and sediment carriage to water resources. The environmental assessment for the Parent Project has been updated to include the roads to be rehabilitated under the Additional Financing. The EA confirms that the Additional Financing is not expected to generate indirect and cumulative impacts. Page 5 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. N/A. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. To address the safeguard policy issues triggered or potentially triggered by the Project, the Borrower has prepared an Environmental Assessment an Involuntary Resettlement Framework. The Environmental Assessment provides a description of DER-SP environmental management system and details the procedures to identify, prevent and mitigate the environmental impacts of the road works. Moreover the report includes: i) a description of the legal and institutional framework for the projects social and environmental management; and ii) details on the environmental monitoring procedures to be used by DER in the project. Likewise, the report outlines areas of improvements of the aforementioned procedures and standards, their review, streamlining and capacity building for their widespread use in DER s decentralized units (Diretorias Regionais - DR). The projects implementing agency, DER-SP has a comprehensive environmental management system which comprises norms, procedures and standards. Such system is deemed to meet the Bank safeguard requirements for identification and mitigation of social and environmental impacts. Additionally, social and environmental management, including licensing and monitoring, are streamlined and well established, capacity to implement environmental norms is considered adequate with appropriate staffing and widespread presence in the state's territory of the Institutions in charge of environmental and social agenda. Finally, specialized environmental supervision consulting companies have been hired to support DER undertaking environmental supervision (including monitoring of social impacts) of the works on a continuous basis. Such environmental supervision will be continued and strengthened under the new phase of the program, building upon past and present experiences, notably in relation to the works to be financed under the AF. The environmental supervision, which carries out routine (at least weakly) field visits to works, will verify the compliance of contracts activities with environmental standards, authorizations and licensing. It will also verify that any eventual unexpected adverse impact on road side dwellers and users is adequately mitigated. The environmental supervision will communicate any social or environmental issues to contractors, local DER staff and DER-SP Environmental Advisory so that appropriate action is taken. To ensure that social and environmental standards of works are met the State Environmental Agency (CETESB) issues specific authorizations for interventions with eventual impact on environment, comprising activities in sensitive milieu, such as protected areas (e.g. state parks), water crossings and areas with native vegetation. Page 6 Compliance with these authorizations is also verified routinely by the environmental supervision firms. Non-compliance to DER s technical environmental specifications and authorizations triggers a notification of environmental non-conformity treated either at the local or at the central level, depending on the magnitude of the impact. Upon notification, contractors must remedy the problem according to the technical standards defined by the DER (e.g. on erosion control, re-vegetation of areas subject to earthworks). The non treatment of notified minor non-conformities by the contractors within the deadlines fixed by the norms triggers a range of sanctions, from non-payment of executed works until resolution of the non-conformity to fines. Additionally, the corpus of laws and norms on environment requires the environmental licensing of any unit of production of intrans in the road works, such as that asphalt plants, quarries, concrete plants etc. Compliance by contractors and suppliers with the requirements of the aforementioned authorizations and licenses is regularly monitored by the Environmental Supervision. Finally, although neither land acquisition nor displacement of people are expected to occur given the type of project intervention (mostly limited to ROW), which was verified under the implementation of the first phases of the Pro-Vicinais program (4,500 km executed), the Borrower has prepared an Involuntary Resettlement Framework and to implement the policy principles above stated for the activities financed under the Program. Thus, should a few and highly unlikely, localized displacement of people become necessary, DER-SP would follow the principles and procedures stated in the Involuntary Resettlement Framework. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key project stakeholders are the municipalities and population benefiting from the proposed road improvement. The Parent project safeguard documents were disclosed in DER-SP website on 04/16/2008. Additionally, in order to promote social control and disclosure of relevant project information, the Borrower agreed that at the inception of each work a consultation will be held at the municipality. During this consultation DER- SP and the contrator informs the population on the project (objective, foreseen works and activities and schedules) and the existing communication mechanisms (Ouvidoria) with DER to respond to eventual questions and complaints about project implementation. The updated Environmental Assessment has been disclosed in the Borrowers website and the World Banks Infoshop. B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 10/29/2009 Page 7 Date of "in-country" disclosure 12/23/2009 Date of submission to InfoShop 01/07/2010 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 03/19/2008 Date of "in-country" disclosure 04/16/2008 Date of submission to InfoShop 01/07/2010 Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: Resettlement Plan for PP submitted on April 28, 2008 and resubmitted for the Additional Financing on January 7, 2010. C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Sector Manager (SM) review and approve the EA report? Yes Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? N/A Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on cultural property? Yes OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? Yes If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan? Yes Page 8 The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Infoshop? Yes Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? Yes All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Yes Have costs related to safeguard policy measures been included in the project cost? Yes Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Yes Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? Yes D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Eric R. Lancelot 07/27/2010 Environmental Specialist: Mr Flavio Chaves 07/27/2010 Social Development Specialist Mr Jason Jacques Paiement 07/27/2010 Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Mr Glenn S. Morgan 07/23/2010 Comments: Sector Manager: Mr Aurelio Menendez 07/27/2010 Comments: