E452 Volume 1 BRAZIL GOIAS STATE HIGHWAY MANAGEMENT PROJECT EXECUTIVE SUMMARY February 16, 2001 I f§FI X Y II 211.1 4 ,A } Brazil Goias State Highway Management Project EXECUTIVE SUMMARY Table of Contents Page A. Introduction B. Policy, Legal and Administrative Framework 3 B. Description 3 B. 2 The Licensing Process 4 B. 3 Environmental Policy of the State of Goias 5 C. Project Description 6 C. ] General Description 6 C. 2 Physical Component 6 C. 3 Institzutional Conmponent 7 D. Collection of Baseline Data 7 E. Public Consultations 8 F. Environmental Impacts 8 F. ] Overview 8 F. 2 %egative Environmental Impacts and Mitigation Measures 8 F. 3 Positive Environmental Impacts 9 G. Analyze of Alternatives 9 H. Environmental Management Plan 9 H. ] Preparation and Mlfonitoring of EMPs 9 H. 2 Institutional Strengthening 10 H.2.1 StrengtheningofAGMAR 10 H2. 2. Strengthening ofAGETOP I I Appendices Brazil Goias State Highway Management Program EXECUTIVE SUMMARY A. Introduction 1. The State of Goais is presently implementing a fiscal adjustment and structural reform program, in order to restore a robust fiscal health, increase the efficiency of the administration, and further foster economic growth. The proposed Goias State Highway Management Project aims at increasing the efficiency of the State road transport system within a sustainable environmental and fiscal framework. The Project is considered an important component which will support the State in achieving the state fiscal adjustment and structural reform program's goals. The Project's institutional components will lead to increased efficiency of public expenditures in the road sector, strengthen the State's environmental and road management capacity. while pursuing the decentralization of the responsibility for the local road network to communities. The Project's physical component will lead to a more efficient conservation of the State's road assets, and contribute to economic growth through better road connections state-wide. B. Policy, Legal and Administrative Framework B. 1 Description 2. The main legal steps in the environmental licensing system in Brazil originate from Law 6938 dated August 31, 1981, which establishes Environmental National Policy. Article nbr. 10, establishes Preliminary, Installation and Operational Licenses for activities considered to be polluting or have impacts. Normally these are issued by state organizations that belong to SISNAMA (National System of Environment). The same law created CONAMA (National Board of Environment) and gave to this Board power to regulate pertinent environmental issues. Thus, CONAMA issued Resolution 001/86, which included among the works to be licensed "roads with two or more traffic lanes." This Resolution was modified by another, number 237/97, which currently is in force, and keeps the restrictions that previously existed for road works. The Law of Environmental Crimes (Law 9605, dated February 12, 1998), which was added to these regulations, defines environmental crimes and establishes severe penalties to those who commit them, whether individuals (imprisonment for periods that can be more than 4 years and fines that can be over RS$ 50 million), or companies (subject to even higher fines, even closing and liquidation of the company). According to this law. the execution of road works without each of these required environmental licenses is a crime. Laws and regulations related to environment in the State of Goais include, inter alia: * Federal Law N. 6.93 8, dated August 3 1, 1981, on the National Environmental Policy * Federal Law N. 9.605, dated February 12, 1998 on Environmental Crimes * Forestry Law of Goias, N. 12.596, dated March 14, 1995, on the Protection of the State's Natural Resources * Resolution CONAMA N. 001, dated January 23, 1986, establishing CONAMA - 4 - * Resolution CONAMA N237, dated December 19, 1997, revising procedures and criteria used in the provision of environmental licenses. B. 2 Th7e Licensing Process 3. .AGMAR, in accordance with federal and state legislation and regulations, authorizes all road construction and major upgrading works on the basis of a review of environmental impact assessments (EIAs); and it authorizes rehabilitation and improvement works on the basis of environmental management plans (EMPs). These documents are prepared by consultants under AGETOP's supervision. AGMAR charges a fee for analysis, licensing and inspection (approximate amount currently is USS45O0.00/km, for highways). AGMAR. based on requirements presented by AGETOP, determines the Terms of Reference for the studies and identification of necessary basic projects requirements for the licensing of each particular stretch of road. Once those studies and project requirements are concluded and commitments are made (PBAs - Basic Environmental Plans), the licenses required by law are issued (Preliminary License, or LP. Installation License, or LI, and Operational License, or LO). Terms of Reference are normally required to carry out more extensive studies (EIA-RIMA) for the implementation of new roads and for the enlargement and paving of existing roads in sensitive areas. For the restoration of roads alreadv paved, a more focused environmental impact evaluation is normally required; it is called PCA - Environmental Control Plan. The flow diagram below shows the licensing process as a whole. Basic Project and EIA-RIMA Preliminarv License (LP) Requirements Executive Projects and Environmental Basic Projects (PBAs) Installation License (LI) Work Implementation and PBAs Operational License (LO) B.3 Environmental Policy of the State of Goias 4. The State of Goias has few protected areas and it does not have a systematic inventory of its natural resources and related sensitive areas. But there is now a broad consensus, including within the state administration. that the state's natural resources and biodiversity need to be protected more effectively. As such, the state has designed a State System of Protected Areas (SEAP), which aims at identifying and protecting, a minimum 10% of the State's surface which would zoned as environmentally sensitive areas, including priority sites for conservation of the Cerrado in the state of Goias, and protection of cultural sites and indigenous people. The SEAP will be implemented by the State Environmental Agency (AGMAR) and will consist of identification and protection of the State's sensitive areas. In order;to ensure an effective implementation of the SEAP, the State is also looking for support to strengthen its capacity in terms of enforcement and monitoring of environmental regulations, both at the level of AGMAR and of the State Road Administration (AGETOP). 5. AGETOP has recently established an environmental unit, responsible for coordinating the agency's environmental work and communications with AGMAR. and for supervising implementation of the agency's environmental norms and Environmental Management Plans (EMPs). The unit, which has been assigned four experienced professionals, has supervised the preparation of the Environmental Impact Assessments and EMPs and revised AGETOP's general specifications for road works to incorporate adequate environmental management requirements. AGETOP has developed and has been using an environmental manual and a set of environmental norms and instructions compiled in a volume called "Environmental Norms and Procedures for Road Activities" of .the State Road Administration (AGETOP). These norms and procedures include specific mitigation instructions both at project design and implementation stages. and define the obligations of designers, contractors and AGETOP, including: ISMA-0 1: Mitigation measures at the Preliminary Design Stage ISMA-02: Study of Road Alignment Alternatives ISMA-03: Guidelines for Environmental Impact Assessments ISMA-04: Report on Environmental Impacts ISMA-05: Preparation of Environmental Management Program ISMA-06: Preparation of Environmental Monitoring Plan ISMA-07: Impacts at the Design Stage: Issues/Mitigation/Elimination ISMA-08: Impacts at the Works Implementation Stage: Issues/Mitigation/Elimination ISMA-09: Impacts during Roads Operational Phase ISMA- 10: Design of Environmental Mitigation Measures ISMA-1 1: Environmental Supervision of Works ISMA-12: Rehabilitation of Areas Plane or with Gentle Slopes through Plantation of Legumes and Graminaceae. ISMA-13: Rehabilitation of Areas with Stronger Slopes through Plantation of Legumes and Graminaceae. ISMA-14: Rehabilitation of Areas Plane or with Gentle Slopes through Plantation of Shrubs and Trees IS MA- 15: Treatment of Wet Areas - 6 - 6. Finally, in accordance with the Brazilian legislation, in case the contractor will need to access areas outside of the road righlt-of-way or outside existing borrow pits extract materials from new sites, the contractor will be able to do so only following the delivery of a license from IPHAN, the Brazilian National Institute for the Protection of Historical and Archeological Sites. C. Project Description C. General Description 7. The project consists of the following five components: * a highway rehabilitation and maintenance component consists of rehabilitation and resurfacing works on about 1,500 km of paved highways, and related engineering services, to restore and maintain the condition of the state's paved highway network in line with the proposed indicators; * a highway paving component consists of the works and engineering services needed to pave about 330 km of highway sections linking agro-industrial centers to major highway or multimodal corridors; * a highway policy and institutional development component consists of the technical assistance, staff training and equipment needed to formulate and/or monitor implementation of new highway policies and programs, and to strengthen AGETOP's planning, management and control systems; * a environmental management component consists of the technical assistance, staff training, equipment and services needed to: (i) prepare the state's environmental protection plan; (ii) strengthen the environmental management function in AGETOP; (iii) strengthen the licensing, supervision and monitoring capacities of the state environmental agency (AGMAR); and (iv) implement the first phase of the proposed system of environmental protection areas; and * a state reform component will consist of technical assistance and staff training to help implement the state's structural and administrative reform, and in particular to strengthen the new utility regulation agency (AGR). C. 2 Physical Component 8. The state of Goias is located in the high central plains of Brazil known as the cerrados. The region's natural vegetation consists mainly of savannah. or open pasture with brush vegetation. with very few remains of forest along the main rivers. The state's economy has traditionally been based on extensive cattle farming. But over the past three decades, the region has seen a very rapid development of agriculture, particularly corn and soybean. The road sections to be included under the project are located in areas in which intensive agriculture (especially focused on cattle farming and production of wheat and soybean) and human establishment are significantly developed. As such. little of the original biodiversity remains. In addition, the indigenous population of the state is very small, less than 200 individuals. Nearly all of them occupy areas demarcated and regularized by FUNAI. There are three small Karaja Reserves near Aruana. and the Ava Canoeiro Reserve near the Serra da Mesa reservoir. There are also a few small communities of Quilombos in the northern part of the state, who are descendents of slaves and seek to preserve their culture. Works foreseen to be included in the project at - 7 - this stage would not require involuntary resettlement. nor would have an impact on indigenous populations. 9. Roads to be maintained under the project include about 1,500 km of paved road sections on the main network of the State. These road sections connect the main cities of the State and have high level of traffic (typicallv above 2.000 vehicles a day). Roads to be paved under the project include about 330 km of existing gravel roads, split in 5 different sub-projects (about 2% of the non-paved network of the State of Goias). These roads have been selected in accordance to their economic importance for the areas they deserve. As such, these roads already have substantial levels of traffic (relatively to average traffic on non-paved roads), typically above 300 vehicles a day. C.3 Inistitutional Component 10. The project will support the implementation of the SEAP. It will provide support to AGMAR to identify, in the form of digitalized maps. environmentally sensitive areas, based on available spatial inventories, field studies and satellite picturing s-ystems. It will also support the establishment of protected areas through: (a) the Bank loan, in two areas, located in critical biodiversity hotspots of the Cerrado ecoregion, will be established through the Bank loan, namely the State Park of Ponte Rio das Pedras, and Serra das Gales (Parauna), and Serra da Bocaina Park (Crixds/Uirapuru). Specifically, the Bank loan will fund the build up of the parks' basic infrastructure, including administrative buildings and visitor's centers; and (b) a GEF grant, currently being discussed, which would: (i) set up a network of Private Reserves of the Natural Heritage (RPPN), Areas of Permanent Preservation (APP) and Private Legal Reserves (according to the Forest Code) that will maximise connectivitv among core areas of the Goyaz-Cerrado Biosphere Reserve and ensure the consolidation of the critical biological corridors in the area; (ii) provide for the basic infrastructure, management plans, governing bodies, as well as a consultative and participatory fora in place in at least the following critical protected areas: area of environmental protection of Pouso Alto, buffer zone of the Veadeiros National Park, and Terra Ronca State Park; and (iii) create a number of effective fiscal, financial, and economic incentives - translated into laws, regulations, and credit lines - that enhance nature conservation and sustainable use of resources in the area of the Biosphere Reserve. D. Collection of Baseline Data 11. The baseline data was collected using a combination of existing available published information and documentation, interviews with key individuals, and site visits to obtain environmental baseline data on each of the road sections included -in the Project. Collected information includes feedback from public meetings organized for collectivities living in the areas surrounding those roads to be paved under the Project. Data collection was focused to obtain sufficient information to identify. evaluate and mitigate direct and indirect impacts that activities to be funded under the project could have on the environment. The study areas for each road section included under the Project stretch to encompass, in addition to the areas immediately surrounding the road sections, those "areas which could be indirectly affected by the project activities. The - 8 - baseline data for the foreseen activities include location of material sources. estimated quantities required for the works The baseline environmental data includes climatic conditions, surface geology, water resources, description of fauna and flora, and identification, if any, of sensitive areas. Social data includes localization of human activities and living areas, heritage, cultural and archeological resources and existing infrastructure. E. Public Consultations 12. Public hearings were organized to inform collectivities of the scope of the paving works, to gather the prospective of the collectivities on the impacts that such works would have on their life, and to discuss tieasures to mitigate potential negative impacts. In total, 8 consultation meetings gathering about 1.000 persons have been organized. In addition, informal consultations were held during the preparation of the designs and EIAs and EMPs for the paving and rehabilitation activities to be funded under the project, in order to seek inputs on specific, local issues from relevant stakeholders. Finally, the EIAs and EMPs have been presented and discussed in subsequent public meetings. F. Environmental Impacts F 1 Overview 13. The project will include a road maintenance/rehabilitation and a road paving component. A Sectoral Environmental Assessment (SEA) has been prepared with the help of a specialist consultant. The SEA includes a diagnostic of AGMAR and AGETOP institutional capacities to carry out their road-related environmental functions, and recommends measures for strengthening them as needed to ensure compliance with the Bank's safeguard policies on the environment and on natural habitats. In addition, specific Environmental Management Plans (EMPs) have been prepared for the road sections to be included in the first year's maintenance and rehabilitation program, and specific Environmental Impact Assessments (EIAs) have been prepared for 4 out of 5 paving subprojects. Both the road maintenance/rehabilitation and paving components will focus on existing roads, which implies that the project will have limited environmental impacts, such as those resulting from new road construction. In particular, no resettlement, no direct impact on the habitat of indigenous population or on cultural or historic sites are envisaged at this stage. However, should this become an issue at a latter stage, a resettlement framework consisting of a policy statement, terms of reference for the preparation of resettlement plans, and an operational manual for dealing with resettlement and indigenous people issues. have been elaborated in collaboration with the Bank, and this framework will apply in particular to works funded under the project. 14. With respect to the project's paving component, the road sections to be paved are already well established gravel roads with substantial traffic levels along their existing alignments, in regions that are already under use for agriculture or cattle raising, the potential indirect impacts on the environment have been found to be limited to relatively small areas. Actually, four sensitive areas have been identified close to the roads to be paved, including: (i) two archeological sites along the road section on GO-156, from Itaberai to Americano do Brasil; and (ii) geological formations within the Serra das Gales -9- and around the rio Ponte de Pedra, along the road section on GO-050, between the roads GO-164 and GO-174. F 2 Negative Environmental Impacts and .11Iitigation lVeasures 15. Negative environmental impacts are expected to be relatively minor. Negative impacts during construction would be restricted to direct impacts of road works related to quarries, asphalt plants, borrow pits, drainage. disposal of wastes and activities of road crews. Longer-term potential negative impacts are related to air and water quality, fauna and flora, traffic safety, and the like. Mitigation measures for these negative impacts are well known and included in AGETOP's environmental manual and set of environmental norms and instructions. The civil works contracts will incorporate appropriate requirements to comply with AGETOP's relevant norms and instructions and will subject payments to contractors to actual compliance. In addition, the supervision contracts will include appropriate requirements to supervise the contractors' compliance with the environmental norms and instructions. Finally, the EMPs identify a number of measures which will be included in the road maintenance/rehabilitation contracts so as to provide for environmental enhancement. In the EMPs reviewed so far, measures include: reshaping of and plantations on embankments and levees on road right-of-way, installation of additional drainage, protection of fauna and flora, and cleaning. 15. With respect to the archeological sites on GO-156 (see para. X above), these have just been identified, and will be explored before the Bank no-objection to the works on this road will be issued, so as to ensure that the extension of the archeological sites are precisely defined and protected. With respect to the Serra das Gales, and rio Ponte de Pedra. while it is not expected that the project will have any significant negative environmental impact on them, the Bank no-objection to the works will be conditional upon the State of Goias classifying the areas as State Protected Areas (APA Estadual), as the paving of these road sections could facilitate access to these sensitive areas. Following the classification, the project will provide funding for goods and works necessary to establish the APAs. F. 3 Positive Environmental Impacts 16. The lack of adequate prevention measures in building the roads to be treated under the Project has resulted into environmental damage, particularly erosion of cuts, embarikments and adjacent land. Also the lack of signalization where the roads intersect with know corridors for native fauna has led to accidents and the death of wild animals. As such, on those road sections included in the Project, the works contracts will include the necessary environmental rehabilitation works and prevention measures. including appropriate signalization. After completion of the works, maintained/rehabilitated roads will have positive impacts on human health and safety through decreased number of accidents; reduced air pollution resulting as a result of more even travel speeds on rehabilitated road sections; reduced water pollution resulting from rehabilitated drainage systems; and reduced noise pollution for those collectivities located close to the rehabilitated road sections. Paved roads are also expected to have positive impacts on economic development, through decreased transport costs, increased economic activity, and increased land value. - 10 - 1 7. The institutional component of the project will yield substantial positive environmental impacts through the establishment of protected areas aiming at preserving fauna and flora, and through the strengthening of the State's capacity to enforce environmental regulations and to monitor impacts on environment of human activities. G. Analyze of Alternatives 18. Different alternatives have been considered during the preparation of the EIAs, and compared to the original design proposed by AGETOP. In one case, the alternative proposed by the EIA has completly replaced the original design, as this alternative involved cost savings and a significant diminution of the negative environmental impacts of the works. In other cases, the alternatives proposed have allowed modifications to original design to mitigate as much as possible negative environmental impacts. H. Environmental Management Plan H 1 Preparation and Mlonitoring of EMPs 19. EMPs have been completed for those maintenance/rehabilitation subprojects to be implemented in 2001 and 2002. EIAs have been completed for 3 out of 5 paving subprojects foreseen to be included under the project. For all additional subprojects, AGETOP will prepare EIAs and/or EMPs in accordance with AGETOP's environmental norms. The EMPs and EIAs will be reviewed by AGMAR, on the basis of which the environmental license will be given. All paving subprojects will be screened for potential impacts on the environment, in accordance with agreed procedures and criteria, with the help of the information system to be established by AGMAR under the project. For all such subprojects, AGETOP will prepare EMvfPs targeted to the specific issues identified at the screening stage on the basis of terms of reference reviewed by AGMAR and approved by the Bank. The Bank will approve financing of the works on the basis of the final subproject application. which will include a summary of the EIAs and EMPs reviewed and approved by AGMAR. The implementation of the EMPs will be supervised by AGETOP, with technical assistance, AGMAR and the Bank in accordance with the agreed norms and instructions and with the Bank's relevant policies. H. 2 Institutional Strengthening 20. 'To ensure that the preparation, implementation and monitoring of the EMPs are conducted in accordance with internationally accepted standards, the project will support strengthening of both AGMAR and AGETOP. as described below. H.2.1 Strengthening ofAGMAR 21. The project will strengthen AGMAR licensing, supervision and monitoring capacities. Specifically, the project will: (i) supply the necessary equipment and training to allow AGMAR staff to manipulate and update the digitalized mapping system set up in (a) above; (ii) provide equipment and technical assistance (including training) to allow AGMAR to analyze, license and monitor exploitation of natural resources and activities which may have a negative impact on the environment; and (iii) provide technical assistance to AGMAR and AGETOP to develop a fully efficient and systematic licensing mechanism for road-related activities in areas such as earth works, paving, restoration, extraction and processing of materials. H. 2.2. Strengthening of A GETOP 22. To get the recently created AGETOP s environmental unit (AEA) fully operational, the project will support the activities described hereafter. through provision of technical assistance and provision of equipment. First. the project will support the supply of equipment to AEA, including the set-up of an information collection and dissemination system, and other equipment (such as cars) to allow AEA to carry out its functions. Second, following the overall revision of AGETOP technical specifications undertaken in 1998. environment-related clauses of all enaineering and civil works contracts need to be conformed to AGETOP's general technical specifications and AGMAR regulations. Third, while AGETOP's environmental norms, instructions and guidelines for state road engineering and works are generally adequate, they need to be complemented by several regulations, including regulations for: the preparation of involuntary resettlement or indigenous people development plans; the processing of public hearings; and the systematic issuing of environmental permits in collaboration with AGMAR. Fourth, the efficiency of AEA's monitoring procedures need to be increased, through review and simplification of the procedures. - 12 - Appendices * Sector Environmental Plan * Environmental Management Plans and Environment Impact Assessments available to date (Synthesis) * Compilation of Public Consultations Held for Paving Subprojects * "Environmental Norms and Procedures for Road Activities" of the State Road Administration (AGETOP) * Framework for dealing with Involuntary Resettlement and Indigenous People Issues