Report No: PAD5304 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF US$12 MILLION TO JAMAICA FOR THE KINGSTON WATERFRONT IMPROVEMENT PROJECT SERIES OF PROJECTS (SOP) 1 June 12, 2024 Urban, Resilience and Land Global Practice Latin America and Caribbean Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective May 22, 2024) Currency Unit = Jamaican Dollar (J$) US$1.00 = J$156.02 FISCAL YEAR April 1 - March 31 Regional Vice President: Carlos Felipe Jaramillo Country Director: Lilia Burunciuc Regional Director: Benoit Bosquet Practice Manager: David N. Sislen Task Team Leader(s): Elad Shenfeld, Carina Lakovits ABBREVIATIONS AND ACRONYMS AM Accountability Mechanism BID Business Improvement District BP Bank Procedure COVID Coronavirus Disease of 2019 CID City Improvement District CRI Corporate Results Indicator CERC Contingent Emergency Response Component CPF Country Partnership Framework DA Designated Account DFIL Disbursement and Financial Information Letter DVRP Disaster Vulnerability Reduction Project E&S Environmental and Social EDGE Excellence in Design for Greater Efficiency ERP Enterprise Resource Planning ESCP Environmental and Social Commitment Plan ESHS Environmental, Social, Health, and Safety ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan ESRC Environmental and Social Risk Classification ESS Environmental and Social Standards EU European Union FM Financial Management GDP Gross Domestic Product GHG Greenhouse Gas GOJ Government of Jamaica GOJEP Government of Jamaica Electronic Procurement GRM Grievance Redress Mechanism GRS Grievance Redress Service IBRD International Bank for Reconstruction and Development ICBSP Inner City Basic Services for the Poor Project ICDP Integrated Community Development Project ICR Implementation Completion and Results Report IDA International Development Association IDB Inter-American Development Bank IFR Interim Financial Report ILFI International Living Future Institute IPF Investment Project Financing ISP Implementation Support Plan JSIF Jamaica Social Investment Fund KiWI Kingston Waterfront Improvement Project KSAMC Kingston and St. Andrew Municipal Corporation LCR Latin America and Caribbean Region LED Light-Emitting Diode LEED Leadership in Energy and Environmental Design LMP Labor Management Procedures M&E Monitoring and Evaluation MFD Maximizing Finance for Development MIS Management Information System MLGCD Ministry of Local Government and Community Development MOFPS Ministry of Finance and the Public Service MSMEs Micro, Small, and Medium Enterprises MTR Mid-term Review NDC National Determined Contribution NEPA National Environmental and Planning Authority NWA National Works Agency NWC National Water Commission O&M Operation and Maintenance OP Operational Procedure PAD Project Appraisal Document PDO Project Development Objective PIOJ Planning Institute of Jamaica PIU Project Implementation Unit PM Prime Minister POM Project Operational Manual PPSD Project Procurement Strategy for Development PSC Project Steering Committee REDI Rural Economic Development Initiative SEP Stakeholder Engagement Plan SORT Systematic Operations Risk-Rating Tool SOP Series of Projects STC Short-Term Consultant STEP Systematic Tracking of Exchanges in Procurement TA Technical Assistance UDC Urban Development Corporation UN United Nations UNFCCC United Nations Framework Convention on Climate Change The World Bank Kingston Waterfront Improvement Project (P179642) TABLE OF CONTENTS DATASHEET ........................................................................................................................... 1 I. STRATEGIC CONTEXT ...................................................................................................... 7 A. Country Context................................................................................................................................ 7 B. Sectoral and Institutional Context .................................................................................................... 8 C. Relevance to Higher Level Objectives............................................................................................. 10 II. PROJECT DESCRIPTION.................................................................................................. 12 A. Project Development Objective ..................................................................................................... 12 B. Project Components ....................................................................................................................... 12 C. Project Beneficiaries ....................................................................................................................... 15 D. Results Chain .................................................................................................................................. 16 E. Rationale for Bank Involvement and Role of Partners ................................................................... 16 F. Lessons Learned and Reflected in the Project Design .................................................................... 17 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 17 A. Institutional and Implementation Arrangements .......................................................................... 17 B. Results Monitoring and Evaluation Arrangements......................................................................... 18 C. Sustainability................................................................................................................................... 19 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 19 A. Technical, Economic and Financial Analysis (if applicable) ............................................................ 19 B. Fiduciary.......................................................................................................................................... 23 C. Legal Operational Policies ............................................................................................................... 25 D. Environmental and Social ............................................................................................................... 26 V. GRIEVANCE REDRESS SERVICES ..................................................................................... 29 VI. KEY RISKS ..................................................................................................................... 29 VII. RESULTS FRAMEWORK AND MONITORING ................................................................... 31 ANNEX 1: Implementation Arrangements and Support Plan .......................................... 38 ANNEX 2: Key Impacts Related to Public Space Investments .......................................... 53 ANNEX 3: Examples of Investment under KiWI SOP 2 .................................................... 55 ANNEX 4: Project Map .................................................................................................. 57 The World Bank Kingston Waterfront Improvement Project (P179642) @#&OPS~Doctype~OPS^dynamics@padbasicinformation#doctemplate DATASHEET BASIC INFORMATION Project Operation Name Beneficiary(ies) Jamaica Kingston Waterfront Improvement Project - SOP 1 Environmental and Social Risk Operation ID Financing Instrument Classification Investment Project P179642 Substantial Financing (IPF) @#&OPS~Doctype~OPS^dynamics@padprocessing#doctemplate Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC) [✓] Series of Projects (SOP) [ ] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [✓] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternative Procurement Arrangements (APA) [ ] Hands-on Expanded Implementation Support (HEIS) Expected Approval Date Expected Closing Date 18-Sept-2024 12-Nov-2029 Bank/IFC Collaboration No Proposed Development Objective(s) To develop high-quality designs to improve the Kingston Waterfront, expand economic development opportunities, and enhance the institutional capacity to enable future private sector-led redevelopment. Components Page 1 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) Component Name Cost (US$) Designs for a green, resilient, and inclusive waterfront 3,000,000.00 Urban upgrading and economic development in Downtown Kingston 4,000,000.00 Enhance the institutional capacity to enable future private sector-led 3,000,000.00 redevelopment Project management 2,000,000.00 Contingent Emergency Response 0.00 @#&OPS~Doctype~OPS^dynamics@padborrower#doctemplate Organizations Borrower: Jamaica Implementing Agency: Jamaica Social Investment Fund (JSIF) @#&OPS~Doctype~OPS^dynamics@padfinancingsummary#doctemplate PROJECT FINANCING DATA (US$, Millions) Maximizing Finance for Development Is this an MFD-Enabling Project (MFD-EP)? No Is this project Private Capital Enabling (PCE)? No SUMMARY Total Operation Cost 12.00 Total Financing 12.00 of which IBRD/IDA 12.00 Financing Gap 0.00 DETAILS World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 12.00 @#&OPS~Doctype~OPS^dynamics@paddisbursementprojection#doctemplate Expected Disbursements (US$, Millions) Page 2 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) WB Fiscal Year 2025 2026 2027 2028 2029 2030 Annual 2.25 3.54 3.65 0.90 1.00 0.66 Cumulative 2.25 5.79 9.44 10.34 11.34 12.00 @#&OPS~Doctype~OPS^dynamics@padclimatechange#doctemplate PRACTICE AREA(S) Practice Area (Lead) Contributing Practice Areas Urban, Resilience and Land CLIMATE Climate Change and Disaster Screening Yes, it has been screened and the results are discussed in the Operation Document @#&OPS~Doctype~OPS^dynamics@padrisk#doctemplate SYSTEMATIC OPERATIONS RISK- RATING TOOL (SORT) Risk Category Rating 1. Political and Governance ⚫ Moderate 2. Macroeconomic ⚫ Moderate 3. Sector Strategies and Policies ⚫ Moderate 4. Technical Design of Project or Program ⚫ Moderate 5. Institutional Capacity for Implementation and Sustainability ⚫ Substantial 6. Fiduciary ⚫ Moderate 7. Environment and Social ⚫ Substantial 8. Stakeholders ⚫ Moderate 9. Overall ⚫ Moderate @#&OPS~Doctype~OPS^dynamics@padcompliance#doctemplate Page 3 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) POLICY COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✓] No Does the project require any waivers of Bank policies? [ ] Yes [✓] No ENVIRONMENTAL AND SOCIAL Environmental and Social Standards Relevance Given its Context at the Time of Appraisal E & S Standards Relevance ESS 1: Assessment and Management of Environmental and Social Risks and Relevant Impacts ESS 10: Stakeholder Engagement and Information Disclosure Relevant ESS 2: Labor and Working Conditions Relevant ESS 3: Resource Efficiency and Pollution Prevention and Management Relevant ESS 4: Community Health and Safety Relevant ESS 5: Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant ESS 6: Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources ESS 7: Indigenous Peoples/Sub-Saharan African Historically Underserved Not Currently Relevant Traditional Local Communities ESS 8: Cultural Heritage Relevant ESS 9: Financial Intermediaries Not Currently Relevant NOTE: For further information regarding the World Bank’s due diligence assessment of the Project’s potential environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review Summary (ESRS). @#&OPS~Doctype~OPS^dynamics@padlegalcovenants#doctemplate LEGAL Legal Covenants Sections and Description Page 4 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) Schedule 2, Section I. A. The Borrower, through the MOFPS, shall cause JSIF to; (a) Establish, no later than one hundred and twenty (120) calendar days after the Effective Date, and thereafter maintain throughout Project implementation, a Project Implementation Unit (“PIU”) with a structure, functions and resources satisfactory to the Bank, and with competent staff in adequate numbers and with qualifications, experience and terms of reference satisfactory to the Bank, as further set forth in the POM, which shall include, inter alia: (i) Project manager; (ii) technical experts; (iii) environmental specialist; (iv) social specialist; (v) monitoring and evaluation specialist; (vi) financial analyst; and (vii) procurement specialist; (b) carry out the day-to-day management and implementation of the Project, as well as overall responsibility regarding fiduciary and financial management matters, procurement, environmental and social risk management, monitoring and evaluation aspects, citizen engagement, and communication; (c) establish, no later than one hundred and twenty (120) calendar days after the Effective Date, and thereafter maintain throughout Project implementation, a Project Steering Committee, with membership, functions (including, inter alia, provide strategic guidance for Project implementation, oversee Project implementation, support stakeholder coordination, and address major crosscutting issues or bottlenecks), and terms of reference satisfactory to the Bank, as set forth in the POM (“PSC”); (d) enter into a coordination agreement with the UDC, as set forth in the POM, for UDC, as lead technical partner, to provide technical leadership, promote high-level communication, and ensure effective coordination with, inter alia, the Ministry of Local Government and Community Development (“MLGCD”), PIOJ, NWA, NWC, NEPA, and KSAMC, as relevant; and (e) collect and process Personal Data under the Project in accordance with whatever is more favorable for Data Subjects between local data protection laws and international best practices and principles, ensuring legitimate, appropriate, and proportionate treatment of such data. @#&OPS~Doctype~OPS^dynamics@padconditions#doctemplate Conditions Type Citation Description Financing Source The Borrower has developed and adopted the Effectiveness Condition-1 Project Operational Manual IBRD/IDA (“POM”) satisfactory to the Bank. Tthe Borrower, through the Ministry of Finance and the Public Service (“MOFPS”), has entered into the Effectiveness Condition-2 Subsidiary Agreement with IBRD/IDA the JSIF, and it has become effective in accordance with its terms, satisfactory to the Bank. Page 5 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) No withdrawal shall be made for Emergency Expenditures under Category 2, unless and until all of the following conditions have been met in respect of said expenditures: (i) (A) the Borrower has determined that an Eligible Crisis or Emergency has occurred and has furnished to the Disbursement Condition-3 IBRD/IDA Bank a request to withdraw Loan amounts under Category 2; and (B) the Bank has agreed with such determination, accepted said request and notified the Borrower thereof; and (ii) the Borrower has adopted the CERC Manual and Emergency Action Plan, in form and substance acceptable to the Bank. No withdrawals shall be Disbursement Condition-4 made for payments made IBRD/IDA prior to the Signature Date Page 6 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) I. STRATEGIC CONTEXT A. Country Context 1. Jamaica made significant strides to address macroeconomic instability while deepening poverty reduction on the basis of an aggressive fiscal consolidation and structural adjustment program between 2013 and 2019. As a result of the program, Jamaica finally broke out of a decades long cycle of anemic growth averaging less than 1 percent per year, to generate an annual average primary surplus of over 7 percent of the gross domestic product (GDP). Public debt stock fell to 94.7 percent of GDP in 2019 from 146 percent in 2013. Unemployment fell to a historic low of 7.2 percent in 2019. In 2018, the poverty rate was 12.6 percent, the lowest recorded in 10 years. The Government’s successful effort to consolidate its fiscal balances spanned two political administrations and is anchored in a social partnership (the Economic Program Oversight Committee) involving stakeholders from public, private, and civil society. The implementation of sound and broad-based policy reforms strengthened the economy and enhanced its ability to withstand shocks. 2. COVID-19 caused the sharpest contraction of real GDP in Jamaica’s history, yet the country has demonstrated a strong recovery that is at risk of reversal given the onset of overlapping crises.1 The COVID-19 pandemic led to a contraction of real GDP by a record 10 percent, and the near closure of most tourism and tourism-related activities, depressing the income of more than 40 percent of the country’s workforce. Recovery has been stronger than anticipated and surpassed pre-pandemic output levels: in 2023, real GDP growth reached 5.2 percent and the unemployment rate fell to a historic low of 4.2 percent. The poverty rate declined to 12.6 percent in 2022, from 16.8 percent in 2021. A marked slowdown in global economic growth amidst tightening financial markets, inflation pressures, rising natural disasters risks, and Russia’s invasion of Ukraine pose risks to continued recovery. Nevertheless, the policies pursued by the Government struck a balance in responding to shocks, protecting the vulnerable, countering inflationary pressures, and securing debt sustainability. 3. Jamaica is highly vulnerable to natural disasters and climatic shocks that are expected to intensify, posing macroeconomic and development risks. Jamaica is the third-most-exposed country in the world to multiple hazards, with over 96 percent of the country’s GDP and population at risk from two or more hazards. These hazards include earthquakes, tropical cyclones, droughts, floods, and landslides, all of which are expected to increase in frequency and intensity due to climate change. Furthermore, Jamaica is vulnerable to other expected climate impacts, such as increased temperatures and sea level rise, which could directly affect not only dense populations and businesses along the coastlines but also the availability of fresh water due to saltwater intrusion.2 Between 1993 and 2003, 26 natural disasters have resulted in total losses of US$2.22 billion, or 1.5 percent of Jamaica’s average annual GDP over the period. A climate risk assessment conducted for the proposed Series of Projects (SOP) highlights the following climate risks related to the project site: (i) exposure of more than a quarter of the city to pluvial flood hazard; (ii) a projected 3 percent increase in extreme rainfall days by 2050 and associated risks of 1 https://www.imf.org/en/News/Articles/2023/02/08/pr2337-imf-executive-board-concludes-2022-article-iv-consultation-with- jamaica 2 Jamaica’s Adaptation Communication (2022). Available at: https://unfccc.int/sites/default/files/ACR/2022 - 12/Adaptation%20Communication%20for%20Jamaica Page 7 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) flash floodings at the waterfront; (iii) rising sea levels which will impact and possibly inundate communities across along the coastal waterfront; (iv) extreme heat exposure: with average summer land surface temperatures of 39.5°C or above are recorded, with both temperature and with and high humidity levels leading to strong to very strong heat stress for over approximately almost 40 percent of hours annually and of days throughout the year. B. Sectoral and Institutional Context 4. Jamaica’s population, economic activity and development are concentrated in and around the capital city Kingston, which faces important challenges in terms of urban livability, climate risks, and competitiveness. Kingston is the largest English-speaking city in the Caribbean. It is the smallest in geographic size of the fourteen parishes in Jamaica and the most densely populated. The city’s urban core and historic downtown trace the waterfront of one of the world’s largest natural harbors. The location of the island and the natural physical structure of its harbor are key factors in Kingston’s success as a major transshipment port in the region. As the city expanded and Kingston’s built-up area sprawled inland, Downtown Kingston, including its port and waterfront, have become peripheral and declined in importance. 5. The decline of Downtown Kingston and the historic urban core along the Kingston waterfront has long been a concern for local government administrations and the private sector. Successive administrations tried to regenerate the waterfront;3 revitalize underused and underutilized land; and attract private sector development. A major transformation of the area was initiated in the late 1960s, with the construction of multiple high rises that replaced the commercial activity of the original waterfront district. These included government buildings, a high-rise hotel, an apartment complex, shopping arcades, and Ocean Boulevard-the main road along the waterfront. The original vision for the redevelopment of the area was revisited in subsequent decades, and incremental improvements were pursued to increase foot traffic and incentivize private sector development. However, lack of consistent leadership, a weak institutional framework, and the absence of an anchor investment to signal government commitment to the private sector, held back the development of the area. 6. Recovering the Kingston waterfront is key to catalyzing redevelopment in Downtown Kingston and improving urban quality of life. Urban quality of life and competitiveness depend on equitable access to shared, open, functional green spaces and streets for formal and informal economic and social activities, recreation, and livelihoods, particularly for the urban poor. Public spaces, if designed and maintained well, contribute to vibrancy, inclusion, safety, and a wide range of positive health outcomes. Researchers also found that parks have a positive effect on social cohesion, increase levels of social engagement across diverse communities, and increase levels of social capital,4 alongside the enormous economic and environmental value they create (see Annex 2). The share of urban areas allocated to 3 Kingston Waterfront means the area bordered in the North by various commercial and residential developments along Ocean Boulevard and in the South by the sea, with Port Royal Street to the East abutting the recently completed Boardwalk and the Kingston Pen Gully to the West. 4 Cohen, Mychal, Kimberly Burrowes, and Peace Gwam. 2022. The Health Benefits of Parks and their Economic Impacts. A Review of the Literature. The Urban Institute. 2022. https://www.urban.org/sites/default/files/2022-03/the-health-benefits-of- parks-and-their-economic-impacts_0.pdf. Page 8 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) streets and open public spaces in Kingston is only 11.3 percent, compared to a recommended 45–50 percent to ensure the effective and equitable functioning of the city. 7. Despite improvements in public safety in the city, concerns about security remain and constrain the development of urban areas, particularly Downtown Kingston. A complex set of risk factors, including poverty, income inequality, and social exclusion contribute to Jamaica’s crime problem. Crime locations are predictable and violent crimes are concentrated in ‘hot spots’ vulnerable to drugs, guns, and gangs.5 The presence of multiple low-income communities in Downtown Kingston has constrained the development of the area. The Government’s approach to crime and violence prevention for inner-city communities has included targeted programs such as the Citizen Security and Justice Programme (implemented by the Inter-American Development Bank [IDB]), and the Inner City Basic Services for the Poor Program (with funding from the World Bank). Over the next five years, the Government, through the Jamaica Social Investment Fund (JSIF), plans to invest about US$10 million in communities in East and West Kingston to address issues of poverty, social exclusion, and poor infrastructure and services provisions. 8. Lack of resources, overlapping responsibilities, and an ineffective regulatory framework have constrained the implementation of a clear development vision for Kingston. Land-use planning in Jamaica is somewhat fragmented, governed by a complex legislative framework and requiring the input of multiple government agencies.6 Most of the institutions involved in the planning process have a shortage of trained and technical staff and inadequate financial resources to effectively carry out their regulatory or executive functions. The lengthy development approval processes may span several years and the high number of building and subdivision violations suggests that squatters as well as developers tend to bypass the planning system.7 9. Kingston has a significant opportunity to put in place a program for the urban transformation of strategic areas. The current Government is committed to streamlining the institutional framework related to urban and land-use planning, as laid out in the Vision 2030 Jamaica National Development Plan, and using the Downtown Kingston and Port Royal Redevelopment Plan to guide downtown redevelopment and address the main bottlenecks preventing the revitalization of strategic areas in the past. Under this vision, the Government is focusing on three areas: (a) the modernization of National Heroes Park to accommodate the new Houses of Parliament and a government campus for approximately eight ministries and agencies of government, a new national museum, public green space and mixed-use development (under construction); (b) the regeneration of the Market Commercial and Business District to the north of the waterfront area and the Kingston Waterfront Improvement Project (KiWI) SOP 1; and (c) the revitalization and increased climate resilience of the Kingston waterfront with a 25km urban ‘Harbour Walk’ trail, the principal section of the Downtown Waterfront being supported by KiWI SOP 1. Additionally, the Government seeks to address key infrastructure issues in Downtown Kingston, including water and sanitation,8 public transportation, and the city’s transit centers and terminals. Momentum has 5 Harriott, Anthony, and Marylyn Jones. 2016. “Crime and Violence in Jamaica: IDB Series on Crime and Violence in the Caribbean.” IDB Technical Note; 1060 6 Vision 2030 Jamaica National Development Plan – Urban Planning and Regional Development Sector Plan. 7 Ibid 8 National Water Commission (NWC). Master and Development Plan Study – Water and Wastewater Downtown Kingston, November 2021 Page 9 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) been building in recent years with the relocation of private sector corporations, including Digicel Caribbean and GraceKennedy Limited, and public sector entities, such as the Ministry of Foreign Affairs and Foreign Trade, to Downtown Kingston. The revitalization is expanding with the rehabilitation and recent opening of a hotel at the waterfront; the completed Port Royal Street Coastal Revetment under the Disaster Vulnerability Reduction Project (DVRP, P146965) and the promenade to the east of the KiWI SOP 1 site; the emergence of an arts district supported by the Kingston and St. Andrew Municipal Corporations (KSAMC) and local non-governmental organization ‘Kingston Creative’; and the restaurants and entertainment hot spots along the waterfront. An increasing number of formal and informal events are organized along the waterfront, confirming increased interest and willingness of residents to make full use of the area. C. Relevance to Higher Level Objectives 10. KiWI SOP 1 aligns well with the World Bank Group’s Country Partnership Framework (CPF) objectives for Jamaica for FY24-27 (Report #187566-JA). KiWI SOP 1 objective is specifically aligned with High-Level Outcome 3: Reduced Vulnerability and Enhanced Resilience to Shocks, focused on expanding the range of instruments available to the GOJ to respond to climate change events and natural disasters. It contributes to the World Bank Group’s Twin Goals of reducing poverty and promoting shared prosperity on a livable planet by promoting inclusive urban growth, low-carbon and climate resilience development, and economic development. Furthermore, and in line with the World Bank Group’s Green, Resilient, and Inclusive Development approach, KiWI SOP 1 will finance green and resilient investments along the Kingston waterfront to mitigate and adapt to climate change and facilitate future green investments and green retrofits in the surrounding area. It will also seek to maximize spillover effects and address urban poverty and social exclusion in surrounding communities through increased economic activity and short- and long-term job opportunities. 11. The Bank proposed the SOP design for this multi-year, multi-phase program with the overarching objective to improve the livability, economic inclusion and enabling environment for private sector participation in the sustainable development of Downtown Kingston. This PAD presents the first project in the time series (KiWI SOP 1, US$12 million, 2024 – 2029), which will finance the conceptual and detailed design of the waterfront park and basic urban infrastructure interventions; community outreach, programming, and support to existing micro, small, and medium enterprises (MSMEs) in and around KiWI SOP 1 project site to foster local economic development; and empower existing local businesses to take advantage of the investments in park. The second operation (KiWI SOP 2, US$28 million, 2025 – 2030), which will commence upon the GOJ’s approval of the waterfront park’s detailed design financed by KiWI SOP 1, will focus on the construction of the waterfront park and small- scale infrastructure works and urban upgrading in the project area. 12. The KiWI SOP 1 will build on the successful activities completed under previous World Bank Projects. These include the Jamaica DVRP, the Integrated Community Development Project (ICDP, P146460), and the Inner-City Basic Services for the Poor Project (ICBSP, P091299), all implemented by JSIF, benefitting 30 inner-city and peri-urban communities island-wide. KiWI SOP 1 will also draw on JSIF’s experience in the implementation of the Rural Economic Development Initiative (REDI) Project (P166279), to strengthen MSMEs. Page 10 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) 13. Jamaica’s Vision 2030 National Development Plan provides the overall framework for the design of KiWI SOP 1. The ‘Vision 2030’ prioritizes climate-resilient and sustainable urban development and is supported by several legislative and policy frameworks including the Local Improvements (Communities Amenities) Act, the Housing Act, and the 2019 draft Housing Policy. 14. KiWI SOP 1 is aligned with the Latin America and Caribbean (LCR) Climate Action Plan 2021-25, emphasizingthe risks and vulnerabilities of the Caribbean region to natural disasters and climate change and greater focus on comprehensive resilience by addressing climate, social, fiscal and financial risks. 15. KiWI SOP 1 is consistent with the country’s Nationally Determined Contribution (NDC). In the latest NDC submitted to the United Nations Framework Convention on Climate Change (UNFCCC) on mitigation, the country commits to reducing its greenhouse gas (GHG) emissions in the energy, forestry and land use sectors by 25.4 (unconditional) and 28.5 percent (conditional) by 2030 compared to a business-as-usual scenario. Over 83 percent of the unconditional reductions are expected to come from the energy sector and include an expansion of renewable energy and improved energy efficiency in all major consuming sectors. Also, 17 percent of the reductions are expected to come from forestry sector policies, including the “No Net Loss of Forestry” commitment and the initiative to plant 3 million trees. KiWI SOP 1 contributes directly to the NDC by prioritizing on-site renewable energy generation on the project site, incorporating energy efficiency standards at least equivalent to Excellence in Design for Greater Efficiencies Standards (EDGE-Level) 1 in any buildings financed under the project, and incorporating nature-based solutions and the planting of native vegetation to reduce heat and maximize carbon sequestration along the waterfront. While the NDC does not have an explicit adaptation portfolio and Jamaica’s National Adaptation Plan and Long-Term Strategy for Low-Carbon Emissions and Climate Resilient Development are currently under development; KiWI SOP 1 is consistent with the country’s ongoing adaptation efforts9 as reflected in the 2022 UNFCCC adaptation communication’s prioritization of resilient infrastructure, natural resources and energy, including by: (i) reducing flood risks through the rehabilitation of the seawall, nature-based solutions and restoration of coastal wetlands mangroves leading to increased impermeability and buffer zones, and improved storm water drainage as part of small-scale infrastructure works; and (ii) reducing heat stress through increased tree cover, shaded areas and nature-based solutions. 16. KiWI SOP 1 leverages public expenditure to crowd in private investments in the development of the waterfront. Well-designed public spaces and urban parks globally have led to significant economic benefits in terms of increased property values and municipal tax revenues and unlocking private investment in adjacent areas, with the initial public investment recovered many times over. 9Jamaica’s Adaptation Communication 2022. https://unfccc.int/sites/default/files/ACR/2022- 12/Adaptation%20Communication%20for%20Jamaica.pdf Page 11 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) II. PROJECT DESCRIPTION A. Project Development Objective Project Development Objective (PDO) Statement 17. The PDO for the overarching SOP is to improve the livability, economic inclusion, and the enabling environment for private sector participation in the sustainable development of Downtown Kingston. The PDO for KiWI SOP 1 is to develop high-quality designs to improve the Kingston Waterfront, expand economic development opportunities, and enhance the institutional capacity to enable future private sector-led redevelopment. PDO Level Indicators 18. The following PDO-level indicators will be measured: • Conceptual and detailed designs for the waterfront improvement completed10 (Number) • People reached with economic development opportunities under the SOP (Number), of which women (percentage) • Designs for basic infrastructure and urban upgrading completed (Number) • Cities with improved livability, sustainability, and/or management (CRI) (Number) • Measures included in the design of the waterfront improvement to mitigate and adapt to climate change (Number) B. Project Components 19. KiWI SOP 1 comprises five components, namely: 20. Component 1: Designs for a green, resilient, and inclusive waterfront (US$3 million). This component will finance the design of a linear, multi-use park along Downtown Kingston’s waterfront, stretching along Ocean Boulevard from Port Royal Street to the East abutting the recently completed Boardwalk and the Kingston Pen Gully to the West (see Annex 4 for the map of KiWI SOP 1). Specifically, this component will finance the development of the conceptual and detailed designs of the park, and support hiring the waterfront park construction supervision firm. The park design will include, among others, recreational facilities, such as bike paths, playgrounds, and sports grounds; permeable and natural walkways; street furniture and landscaping; Light Emitting Diode (LED) street lighting and signage; green infrastructure like retention pools and floodable park areas; the rehabilitation of the seawall; adaptable market and event spaces for art and entertainment that will generate income-generating opportunities for local entrepreneurs. The park will be designed with an eye towards practical considerations of maintenance as well as long-term financial sustainability, generate revenue for operations and 10 CRI = Corporate Results Indicator. Page 12 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) maintenance (O&M), and activate the wider area for future investment and private sector-led development. Specific investments under KiWI SOP 2 with estimated costs are listed in Annex 3. 21. The park design will prioritize considerations of low-carbon development and resilience. KiWI SOP 1 will assess and calibrate the embodied carbon impact of proposed design solutions from the early stages of planning, with a view to including optimal design options, land uses, structural systems, and landscape and façade materials, including through the reuse of existing structures (pavement, seawall, and concrete piers) and vertical structures (e.g., shipping containers) to create new typologies unique to the waterfront and thus, reduce the carbon footprint of construction. A sustainability plan has already been completed to guide the future design process and help achieve a low-carbon, resilient waterfront that includes practical interventions and quantifies associated emission reductions. The designs of the park will propose to pedestrianize Ocean Boulevard and connect to the waterfront promenade and coastal protection measures developed along Port Royal Street under the DVRP, thus creating a contiguous and resilient recreation corridor to encourage active mobility and a modal shift away from cars. The design of the park will prioritize high resource and energy efficiency, low carbon building, as well as onsite renewable energy generation to offset 100 percent of operational energy demand, and will look to certify any construction with the most appropriate green building standards, including EDGE, Leadership in Energy and Environmental Design (LEED) or other Zero Carbon Certifications. The park will be designed to reduce flood risks by allowing for greater permeability and managing 100 percent of precipitation on-site, address risks related to sea level rise and storm surges by rehabilitating the seawall and provide adaptation measures for extreme temperature by increasing tree cover and shade areas to decrease hours with extreme heat stress by at least a third. KiWI SOP 1 will prioritize nature-based solutions, green infrastructure, indigenous vegetation, and educational sites that raise awareness about coastal resilience and stormwater surges and the ecological and symbolic significance of Kingston’s natural harbor. 22. Component 2: Urban upgrading and economic development in Downtown Kingston (US$4 million). This component will finance the following three sub-components and activities which will continue with KiWI SOP 2. Subcomponent 2.1: Designs for basic urban infrastructure upgrading (US$1 million). This subcomponent will finance the design of small-scale infrastructure works, urban upgrading and streetscaping in the project area, bordering the Kingston waterfront. Designs will prioritize the enhancement of critical corridors and throughfares including through nature-based solutions such as increasing tree canopy and establishing floodable parks for climate resilience. The designs will support improved access to the waterfront and conditions for commercial activities. Specific investments under the KiWI SOP 2 with estimated costs are listed in Annex 3. Subcomponent 2.2: Fostering economic development (US$2 million). Activities financed by this subcomponent include a comprehensive mapping of businesses, a business needs assessment and business support to enable existing vendors and MSMEs in and around the project area11 to take advantage of the economic opportunities generated by the waterfront investment and associated 11“Project Area” means the located in the central area part of the Parish of Kingston that includes a mix of commercial, residential, and government buildings, as well as cultural and historical landmarks, bounded by the Kingston Harbour (south); South Parade (north); Gold Street (east); Pechon Street, Water Lane and Kingston Pen Gully (west). Page 13 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) development. Business support activities will include: (a) skills and knowledge transfer programs, including training in business plan development, operations, accounting, marketing, human resources, finance and cost-saving through increasing energy-efficiency of operations; and (b) in-kind support in the form of equipment, including energy-efficient upgrade of appliances. The business support activities will be finalized within the first six months of implementation, based on the findings of the mapping exercise and business needs assessment. Criteria for the prioritization and selection of beneficiaries under this component are expected to include, among others: (a) geographic scope (MSMEs located in the geographic scope of Component 2); (b) socio-economic vulnerability (elderly, female-headed businesses, involving people with disabilities and/or economic vulnerabilities); (c) local impact, (d) technical and financial feasibility; and (e) Environmental & Social (E&S) sustainability. Subcomponent 2.3. Community outreach, activation, and inclusion (US$1 million). This subcomponent will finance community engagement in the project and contiguous areas, throughout the implementation of KiWI SOP 1 and KiWI SOP 2, to inform the activation of the park. The stakeholder engagement process will leverage existing structures for community engagement and will (a) communicate and generate buy- in and ownership for waterfront redevelopment among community members and residents; (b) elicit community views and contributions during the planning process to ensure the design engages the experiences and needs of a wide diversity of Kingstonians; and (c) draws on the creative and entrepreneurial potential of local residents and businesses. Finally, the subcomponent will develop strategies for at-risk youth through events and cultural activities at the waterfront and Downtown Kingston, including summer camps, volunteering, training, and access to practice and performance spaces. 23. Component 3: Enhance the institutional capacity to enable future private sector-led redevelopment (US$3 million). This component will finance technical assistance (TA) to relevant government agencies to attract private investors for developing blighted and underutilized sites within and adjacent to the waterfront. Real estate market demand has been rising in Kingston and the private sector expressed interest in investing in Downtown Kingston and the waterfront. The Government through this sub-component will secure TA to (a) explore the creation of a Downtown-Kingston City Improvement District12 or a similar professionally and independently managed entity, to ensure the sustainable O&M of the waterfront park; (b) develop and manage public-private collaboration in implementing urban regeneration, including related to the potential use of land-based financing instruments; negotiation of market-viable transaction structures; and selection of real estate development partners; and (c) strengthen public sector planning capacities and support to align institutional, private sector, community, and other stakeholders around a medium- to long-term sustainable, urban redevelopment vision. Activities under this component will continue under KiWI SOP 2. 24. Component 4: Project management (US$2 million). This component will support the administrative management of KiWI SOP 1 by JSIF and implementing partners through, but not limited to, 12City Improvement District (CID) and Business Improvement Districts (BID) are geographically defined, self-taxing districts established by a majority of property owners within that district, who agree to contribute a supplemental levy or assessment. BIDs are privately directed, publicly sanctioned non-profit organizations that supplement municipal and/or local public services (e.g., public lighting, trash pick-up, street signage) and seek to enhance the economic vitality of the district. Page 14 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) following personnel: (a) project coordinator; (b) financial management (FM) and procurement specialists, including auditors to carry out the fiduciary aspects of the project; (c) monitoring and evaluation (M&E) specialists; (d) technical experts needed for KiWI SOP 2 preparation and KiWI SOP 1 implementation (including E&S management and social protection specialists); and (e) technical focal points, including project managers with expertise in real estate and urban development and engineering in the Urban Development Corporation (UDC). JSIF will coordinate the provision of training and workshops and manage the financing of necessary goods, equipment, and operating costs, including costs associated with convening and reporting to different government stakeholders. 25. Component 5. Contingent Emergency Response (zero allocation). A Contingent Emergency Response Component (CERC) is an ex-ante mechanism available to the GOJ to gain rapid access to financing to respond to an eligible crisis or emergency. This component will allow for rapid reallocation of uncommitted project funds towards urgent needs in the event of a disaster (geophysical, climate-related, or man-made), or public health emergency. Such events may include hurricanes, floods, earthquakes, droughts, and disease outbreaks. There is flexibility in establishing the level of evidence needed to activate this component including, but not limited to, issuances such as the declaration of a State of Calamity by the mandated national or subnational authority, or a State of Public Health Emergency. The agreed trigger would enable reallocation of uncommitted project funds to support immediate response and recovery needs from other project components. Disbursements would be made against a positive list of critical goods, civil works, and consulting services required to support the immediate response and recovery needs. The potential CERC-financed activities would: (i) be aligned with the main project activities, (ii) follow the project’s implementation arrangements, and (iii) be based on JSIF’s mandate under the various emergency response and contingency plans. C. Project Beneficiaries 26. At least 700,000 residents of Kingston and St. Andrew and its wider metropolitan region who live in and/or access the city daily for work, services, and other opportunities will benefit from the project. Activities under Component 2 will benefit approximately 200 residents and MSMEs located in the project area with skills training and in-kind support, as well as basic infrastructure upgrades designed under KiWI SOP 1 (and financed under KiWI SOP 2). Component 3 will benefit policy makers and the private sector with strategies for public-private redevelopment of the waterfront area, capacity and regulatory framework to plan and better manage urban regeneration and a mechanism for sustainable long-term operations of the park. Page 15 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) D. Results Chain Problem statement: Lack of public spaces and urban blight undermine quality of life, private investment, and broader development in Jamaica’s capital. Critical assumptions: (i) Stakeholders are actively engaged in the design and activation of the waterfront park to ensure it meets their needs; (ii) Implementing agencies have commitment and technical capacity to manage project activities; and (iii) The GOJ remains committed to the revitalization of Downtown Kingston and invests in the O&M of the park and promotes private investment in the vicinity of the park. E. Rationale for Bank Involvement and Role of Partners 27. The World Bank is well-positioned to support the GOJ in its effort to accelerate urban regeneration in Downtown Kingston. The World Bank has extensive experience in promoting sustainable and resilience urban development in Jamaica over the last two decades with the ICDP, ICBSP and the DVRP. The Foundation for Competitiveness and Growth Project (FCGP, P173165) supported private sector development, including in Downtown Kingston. The design of the Project draws on the World Bank's international experience in promoting urban revitalization including the Dhaka City Neighborhood Upgrading Project (P165477), the Justice Quarter-consolidate judicial functions at strategic urban brownfield site Project (P177611); the Metro Colombo Urban Development Project (P122735), the Project for Integrated Urban and Tourism Development (P155875), and the Bolivia Urban Resilience Project (P165861). KiWI SOP 1 will receive TA from the Canada-Caribbean Resilience Facility, the City Climate Gap Fund, the City Resilience Program, and the ACP-EU Disaster Risk Management Program. The European Union (EU) supports the GOJ’s program on Urban Renewal and Development with (a) solid waste Page 16 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) management in Kingston and St Andrew (also covering Kingston’s harbor); and (b) mangrove protection around Kingston harbor. The extension to the waterfront promenade through the Kingston ‘Harbour Walk’ initiative is supported by the Caribbean Development Bank. Activities financed by KiWI SOP 1 will complement the efforts of development partners and will continue to coordinate activities with relevant stakeholders going forward. KiWI SOP 1 will benefit from World Bank’s experience with mobilizing private capital to sustain public goods. F. Lessons Learned and Reflected in the Project Design 28. Examples worldwide illustrate how cities can transform rundown urban environments by implementing creative and effective strategies to create people-centered public spaces. Investments in upgrading open spaces and parks have initiated development and community engagement cycles. For instance, the Dhaka City Neighborhood Upgrading Project highlighted the importance of participatory design processes in creating inclusive public spaces and addressing women's safety concerns. Similarly, in Beijing, the Dashilar regeneration program used a co-creation approach to meet community needs, fostering ownership and pride among residents. The ‘+Ciudad’ initiative in Lima transformed underused parking lots into Plaza 31, a popular gathering place that connects diverse groups and strengthens social networks. Seoul's Yonsei-Ro street project enhanced walkability and pedestrian safety, leading to a 28.9 percent increase in visitors within a year. Colombo’s Crow Island Beach Park, developed through the World Bank Metro Colombo Urban Development Project, revitalized an abandoned waterfront, attracting locals and tourists alike. Lessons from these projects inform KiWI SOP 1. 29. Revitalizing large-scale urban areas typically occurs in phases, starting with public space and infrastructure upgrades to signal long-term redevelopment commitments. Successful global examples often adopt a public-private approach, phasing interventions while maintaining a long-term vision and adjusting to market conditions. Washington, DC's Anacostia Waterfront Framework Plan, for example, guided waterfront regeneration over 20 years. Building public sector capacity is crucial for balancing public interests while negotiating with private developers, as demonstrated by Buenos Aires' Puerto Madero Corporation. KiWI SOP 1 will support strategies for activating project sites during the design phase, financing initial public investments, and building public sector capacity to attract and manage private investment, aligning with the Government’s vision for a vibrant, mixed-use, and sustainable Downtown Kingston. Public spaces also require sustainable O&M strategies, drawing lessons from innovative models like New York’s Brooklyn Bridge Park and Cape Town's Central City Business Improvement District, ensuring high-quality maintenance and financial sustainability through diverse funding mechanisms and community engagement. III. IMPLEMENTATION ARRANGEMENTS A. Institutional and Implementation Arrangements 30. Based on its technical capacity, formal authority and mandate, and prior experience with implementing World Bank-financed projects, the primary partners for KiWI SOP 1 are the Jamaica Social Investment Fund (JSIF) and the Urban Development Corporation (UDC). The Ministry of Finance and Public Service (MOFPS), Planning Institute of Jamaica (PIOJ), KSAMC, Ministry of Local Government and Page 17 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) Community Development (MLGCD), National Environment & Planning Agency (NEPA), National Works Agency (NWA), and National Water Commission (NWC) are also supporting agencies with roles and responsibilities linked to their respective areas of responsibility. The institutional arrangements and responsibilities of the different institutions are outlined below. Detailed roles and responsibilities are described in Annex 1 and will be further outlined in the Project Operational Manual (POM). A Project Implementation Unit (PIU), with key technical staff, will be established within 120 calendar days from effectiveness and support implementation. 31. JSIF as the lead implementing agency will host and manage the PIU with overall responsibility for KiWI SOP 1 implementation including fiduciary, procurement, E&S risk management, M&E, citizen engagement, and communication. Specifically, it will serve as the lead technical agency for Component 2. It will be responsible for citizen engagement and GRM and will work with the UDC to organize stakeholder meetings, provide information to the public on KiWI SOP 1 goals, benefits, and implementation progress, and address feedback. JSIF will also ensure equal participation of women in the community engagement processes. It will also support the engagement of qualified consulting firms for UDC for investment design and contract supervision (KiWI SOP 1). 32. The UDC will serve as the lead technical agency for Components 1 and 3 of KiWI SOP 1. It will (a) lead the urban design studies; (b) review consultant deliverables as relevant: (c) monitor project implementation progress; (d) exercise supervision and oversight and participate in key meetings, provide the required approvals in accordance with the regulatory framework; (f) consult and garner the support and endorsement of the KSAMC and relevant agencies; and (g) obtain the required approvals from NEPA. The UDC will not execute funds under KiWI SOP 1. The POM will detail KiWI SOP 1 organogram and describe the duties and responsibilities of all staff supporting implementation. 33. Project Steering Committee (PSC). A PSC with representation, as needed, from the MOFPS, PIOJ, UDC, JSIF, KSAMC, MLGCD, NEPA, NWA, NWC, representatives from other relevant government agencies, as well as civil society and private sector, will be established one hundred and twenty (120) calendar days from project effectiveness. The PSC will provide strategic guidance for the implementation of KiWI SOP 1, ensure overall project oversight, support stakeholder coordination, and solve major implementation bottlenecks. JSIF will serve as secretariat of the PSC together with the PIOJ, meetings will be chaired by a senior government official, main discussion points and decisions will be made public, and project timeframes and metrics will be published as relevant. Details regarding roles and mandates of the PSC and a Technical Working Group, which will be established as a subcommittee of the PSC, will be specified in the POM. B. Results Monitoring and Evaluation Arrangements 34. M&E will be carried out by the PIU, based on the indicators included in the Results Framework for the overall SOP. The PIU will coordinate with JSIF and UDC to (a) collect, consolidate, and report on project performance data, including physical and financial progress, compliance with legal covenants and E&S requirements through bi-annual reports; and (b) provide information on progress with intermediate results indicators and PDO indicators of the Results Framework in line with the M&E plan for the project. The bi-annual reports will also include data tracking grievances and resolutions achieved. KiWI SOP 1 will finance M&E-related training, including in data analysis for project implementing agencies. A Page 18 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) Management Information System (MIS) will be developed for streamlined reporting on and monitoring of service delivery by the implementing agencies. KIWI SOP 1 will finance independent consultants to capture baseline, mid-line and endline data to assess social, environmental, and economic impacts of the project. C. Sustainability 35. Sustainability is integral to the design and management of KiWI SOP 1. The designs of the infrastructure investments will be based on participatory processes and incorporate good practices in climate-smart, gender-informed, and universal design. KiWI SOP 1 will finance technical assistance for design of the waterfront redevelopment, including the procurement of the conceptual and detailed design, and construction supervision. KiWI SOP 2 will finance the construction of the waterfront park and small-scale infrastructure works and urban upgrading in the project area, bordering the Kingston waterfront. Outputs from components 2 and 3 of KiWI SOP 1 will be implemented by KiWI SOP 2. There is a high level of institutional commitment and ‘buy-in’ from the GOJ as demonstrated by the government staff/human resources, government budget, and leadership attention that has been dedicated to the preparation of KiWI SOP 1 and in strategizing follow-on phases in line with the Downtown Kingston and Port Royal redevelopment plan 2010–2030 and Vision 2030 Jamaica National Development Plan. KiWI SOP 1 and the revitalization of Downtown Kingston has enjoyed a high level of interest and support from the affected local business community. 36. The impact of KiWI SOP 1 is expected to continue well beyond the life of the two projects. KiWI SOP 1 seeks to expand, enhance, and increase utilization and benefits of public and green spaces in the city, increase site-specific resilience, catalyze follow-on investment for positive economic and social development of Downtown Kingston, and promulgate models that could be incorporated in other development projects across the island. Through Component 3, KiWI SOP 1 will strengthen public sector capacities to manage future urban regeneration initiatives, including through the design of public-private collaboration models, assessment of the regulatory framework, and strengthening of institutional coordination among responsible planning agencies and local government. KiWI SOP 1 will support creation of sustainable business models/organization structures to manage programming, branding, and marketing (if/as needed to support on-site retail and events), and ongoing maintenance for the waterfront and potentially Downtown Kingston, through the creation of a CID, for -private buy-in and ownership for urban renewal efforts and its sustainability. IV. PROJECT APPRAISAL SUMMARY A. Technical, Economic and Financial Analysis (if applicable) Component 1: Designs for a green, resilient, and inclusive waterfront 37. The investment in preparing the conceptual and detailed designs of the waterfront park is necessary to realize its benefits when constructed under KiWI SOP 2. The preparation of the conceptual and detailed designs, through consultancy services selected following a competitive procurement process, Page 19 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) is expected to provide value for money. This investment will be treated as a cost in the cost benefit calculation of the park. Component 2: Urban upgrading and economic development in Downtown Kingston 38. Investments in training and business development services for people working in MSMEs, as supported under Subcomponent 2.2, are expected to be substantial. Training and business development services targeting micro and small business owners lead to increases in lifetime income of beneficiaries by 10–40 percent, according to an impact evaluation of a project in Uganda13. Another impact evaluation showed that such positive impacts on income persist over time14. An impact evaluation of a training program for entrepreneurs in Ethiopia carried out by the World Bank showed that profits of the MSMEs led by the entrepreneurs who completed business and personal initiative training were 30 percent higher than those of entrepreneurs who did not15. A net present value and internal rate of return have been calculated assuming that incomes of 1,000 entrepreneurs who benefit from the training and business development services may increase by 10 percent, the lower end of estimates from other initiatives. A summary of the assumptions used, and findings is below. • Training costs. The costs of identifying key initiatives and the service providers and of delivering the training program is estimated to be US$485,000 or US$485 per person. • Discount rate. A discount rate of 5 percent was used, in line with World Bank guidance. • Start-up activities take one year. • Training starts in year two with new cohorts participating in training in each of the following three years. • Benefits for people acquiring entrepreneurial skills start to flow from year two and continue for 10 years • The average income of the entrepreneurs is US$525 per month prior to the training, and US$578 (10 percent more over baseline). Table 1: Economic analysis of the benefits of training in business skills for entrepreneurs Base case Scenario 1 (costs Scenario 2 Scenario 3 (costs up up by 10%) (benefits down by by 10% and benefits 10%) down by 10%) Net present value US$3.23 million US$3.20 million US$2.87 million US$2.84 million Internal rate of return 83 percent 80 percent 78 percent 75 percent 13 Blattman, Christopher; Eric P. Green; Julian Jamison, Julian; M. Christian Lehmann; and Jeannie Annan. 2016. “The Returns to Microenterprise Support among the Ultra Poor: A Field Experiment in Postwar Uganda.” American Economic Journal: Applied Economics 8 (2): 35–64 14 Banerjee, A., E. Duflo, N. Goldberg, D. Karlan, R. Osei, W. Pariente, J. Shapiro, B. Thuysbaert, and C. Udry. “A Multifaceted Program Causes Lasting Progress for the Very Poor: Evidence from Six Countries.” Science 348, no. 6236 (May 14, 2015): 1260799–1260799. 15 Salman Alibhai, Niklas Buehren and Sreelakshmi Papineni. 2016. “From Learning to Earning: An Impact Evaluation of The Digital Opportunity Trust Entrepreneurship Training.” World Bank. Gender Innovation Lab. September. Page 20 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) 39. It should be noted that these figures are very preliminary estimates . The numbers will be updated once better information becomes available on (a) the training design and delivery costs, (b) the number of trainees benefited per year, and (b) the current incomes of the beneficiaries. Component 3: Enhancing the institutional capacity to enable future private sector-led redevelopment. 40. Institutional benefits are likely to be substantial. The project aims to strengthen the capacity of government agencies to help them unlock latent value and potential of the waterfront. This is expected to strengthen the government’s ability to leverage and mobilize private sector capital and expertise in the process of repositioning, densifying, and redeveloping public sector real property assets into more sustainable, more resilient, and higher value uses. The project also will leverage private sector partners’ incentives, resources, and expertise to support ongoing maintenance and programming of public spaces at high-quality level. It will also enhance the capacity of the government to improve energy efficiency, create green or cool roofs to mitigate urban heat, and to invest in other nature-based solutions to enhance the resilience of Kingston to climate-related events. The project will finance technical advice to assist the government in developing sustainable operations and maintenance mechanisms for urban public spaces, including, the proposed waterfront park. Finally, support of the project will enable the government to effectively coordinate the private sector, community members, and other stakeholders in support of a medium to long-term redevelopment vision. B. Paris Alignment 41. The operation is aligned with the goals of the Paris Agreement on both mitigation and adaptation. 42. Assessment and reduction of adaptation risks. Kingston faces significant climate risks, particularly related to flooding, sea level rise, and extreme heat, as well as accessibility to potable water. A climate risk assessment conducted for KiWI SOP 1 highlights the following climate risks: (i) exposure of more than a quarter of the city to pluvial flood hazard; (ii) a projected 3 percent increase in extreme rainfall days by 2050 and associated risks of flash floodings at the waterfront; (iii) rising sea levels of up to 2.15m by 2100 which will impact and possibly inundate communities across the coastal waterfront; (iv) extreme heat exposure: average summer land surface temperatures of 39.5°C or above are recorded, with both temperature and humidity levels leading to extreme heat stress throughout significant portions of the year. Added to this, average temperature increases of at least 1°C are projected by 2050. The core objective of the investments financed under this project are to i) increase the resilience of the waterfront to current and future climate events and to ii) create an outdoor public space for the community to enjoy year-round. The project design takes into consideration the climate change and disaster risks mentioned above that threaten the outcomes of the project and has incorporated the following measures to reduce or manage them: - A sustainability analysis conducted for the Project demonstrates the waterfront’s ability, through targeted shading devices, including trees, open-air architectural shading structures and solar photovoltaic canopies financed under Component 1 of SOP 2, to become an outdoor space to be enjoyed year-round by improving outdoor thermal comfort. The waterfront design will also maximize low-maintenance green spaces, use reflective materials and light-colored aggregates in Page 21 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) hardscapes, and shading hardscapes wherever possible to further reduce solar gains and dissipate heat in the area. - The Project seeks to strategically deploy native vegetation for carbon sequestration, heat reduction as well as flood mitigation, as healthy vegetation and soils support improved water quality and prevent excessive runoff, erosion, sedimentation, and flooding. - The Project will incorporate nature-based solutions such as floodable green infrastructure and rain basins that can withstand heavy rainfall and flooding. - Nature-based solutions to manage heat and flood risks in the surrounding Downtown areas will be financed under Component 2.1 of the KiWI SOP 1 to increase resilience beyond the immediate waterfront area. - The design of any investment, particularly buildings, will be informed by climate and disaster risk information, and incorporate passive design measures to improve indoor thermal comfort and reduce active cooling needs, and withstand climate risks related to flooding and sea level rise. By including these measures, the risks are reduced to acceptable levels and the project is considered to be aligned for adaptation. 43. Assessment and reduction of mitigation risks. The project does not carry a risk of preventing Jamaica’s transition to a low-carbon development pathway and will likely have a positive contribution to it by financing interventions that are considered universally aligned with the Paris Agreement or that are not expected to result in significant increases in GHG emissions: - Component 1 of KiWI SOP 1 will finance the design and construction of a park and open public space; the integration of nature-based solutions to mitigate heat and flood risks; and activities that promote non-motorized transport such as the pedestrianization of Ocean Boulevard, which are considered universally aligned. Under Component 1, KiWI SOP 1 aims to offset 100 percent of operational energy use at the waterfront using on-site renewable energy, efficient LED systems, avoiding as much as possible active cooling and conditioning strategies, and designing efficient irrigation and water feature systems. Significant carbon reductions will be achieved by assessing, salvaging, and reusing existing waterfront materials, reducing the quantity of hardscapes and carbon intensive materials, and substituting concrete hardscapes with lower impact materials like wood, wherever possible with the aim of working towards a net zero embodied carbon waterfront design. - Any new or reconstructed buildings, financed under the SOP will achieve at least Level 1 EDGE Certification or equivalent. - It is not expected that any activities financed under Component 2 will result in increases in GHG emissions: Component 2.1 will finance basic infrastructure to enhance the resilience of the wider Downtown area, with a focus on integrating nature-based solutions to increase water retention and mitigate heat, and LED street lighting, which are considered universally aligned. Under Component 2.2. the aim is to advise business owners in the area to, amongst other things, improve the energy efficiency and sustainability of their operations, by advising on the recommended energy use of appliances and financing replacement of old appliances for more energy efficient ones, in order to reduce direct and indirect emissions associated with the operation of outdated equipment. It is not expected that community outreach activities financed under Component 2.3 will lead to an increase in emissions; information and communication Page 22 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) activities are under the universally aligned list. Component 3 comprises TA Activities that are also under the universally aligned list, and will provide targeted capacity building to the Government to unlock private sector financing and participation in urban regeneration activities and urban planning initiatives that are undertaken with considerations of denser and more compact development, mixed land uses or Transport-Oriented Development to contribute to less carbon- intensive urban forms and advance mitigation goals, and are expected to have low carbon lock-in risks as well. 44. Therefore, the proposed activities are not expected to have a negative impact on Jamaica’s low GHG-emissions development pathway and as such, it can be considered aligned for mitigation. B. Fiduciary (i) Financial Management 45. An FM assessment was carried out in January and December 2023 to evaluate the adequacy of the FM arrangements for implementing KiWI SOP 1. The objective of the assessment was to determine whether JSIF has acceptable FM and disbursement arrangements in place for this SOP. The assessment concluded that with the mitigating measures described in the Risks section of Annex 1, paragraph 14, the KiWI SOP 1 will have adequate FM arrangements in place that can provide, with reasonable assurance, accurate and timely financial information on the status of project funds. JSIF has experience in implementing donor-funded projects and is currently implementing two World Bank-financed projects, the DVRP and the REDI II. JSIF has performed moderately satisfactory to date on FM, with issues in internal controls and accounting that are being addressed. 46. FM staffing/personnel. The Finance Department within JSIF is staffed with experienced professionals who should be able to adequately execute the FM responsibilities of KiWI SOP 1. Senior financial analysts are assigned to projects and are responsible for ensuring that appropriate and satisfactory FM arrangements are maintained for their respective projects, preparing financial reports and bank reconciliations, and assisting in the preparation and monitoring of budgets. Given the expected increase in workload, it is recommended that JSIF assign or hire a dedicated financial analyst to be assigned to this SOP. 47. Planning and budgeting. JSIF as the lead implementing agency will establish a detailed budget by component for the life of KiWI SOP 1, which will inform the annual work plan. An annual budget will be prepared by the JSIF project coordinator who will seek input from the JSIF Procurement and Finance Department and relevant project implementing partners such as the UDC. The agreed procedure will be documented in the POM. The annual budget will be revisited quarterly and updated as needed to reflect the status of implementation and reported in the interim financial report (IFR). 48. Accounting. KiWI SOP 1 will follow cash basis accounting, and all project transactions will be recorded in the computerized accounting system, Sage 300 ERP16 Premium Multicurrency system, which is capable of recording and reporting transactions in US dollars with conversion of local currency 16 ERP = Enterprise Resource Planning. Page 23 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) expenditures at the relevant exchange rate. Additionally, the Chart of Accounts will be built in the system following cash basis accounting. This will address previous accounting and reporting issues faced with other projects under implementation. The accounting system, Sage 300, is supported by a proprietary project management software system developed by JSIF named Fund Manager. Sage 300 will allow capturing of the project transactions in accordance with the project design by categories and component and subcomponent activities. 49. Internal control. The POM will describe the internal control mechanisms to be put in place by JSIF to properly manage, control, and conduct oversight of the implementation arrangements, including financial and technical reporting. JSIF has previously adopted Operations Manuals (dated March 2004, revised March 2006) which outline all procedures to be followed by staff and include a Financial Management and Audit Procedures section. Additionally, JSIF has a Finance Department and Accounting Policies and Procedures Manual (dated February 2019) with comprehensive guidance over the finance functions. These manuals have been reviewed by the World Bank and found acceptable following updates during 2023 to address previously noted issues in relation to the basis of accounting and reporting, as well as accounting policies. (ii) Procurement 50. Procurement will be carried out in accordance with the World Bank’s ‘Procurement Regulations for IPF17 Borrowers’ (Procurement Regulations) dated September 2023, with due consideration to ‘Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants’, dated October 15, 2006, revised January 2011 and as of July 1, 2016. In accordance with paragraph 5.9 of the Procurement Regulations, the World Bank’s Systematic Tracking of Exchanges in Procurement (STEP) system will be used to prepare, clear, and update Procurement Plans and monitor all procurement transactions for the project. A simplified Project Procurement Strategy for Development (PPSD) has been prepared to define the applicable procurement arrangements, appropriate selection methods, including market approach, and type of review to be conducted by the World Bank. The Procurement Plan for the first 18 months of implementation has been prepared and approved by the World Bank, based on the PPSD. The World Bank’s Standard Procurement Documents will be applied to all international procurement activities. When approaching the national market, as agreed in the Procurement Plan, the country’s own procurement procedures may be used, subject to the conditions specified in the Procurement Plan. These procurement procedures shall be consistent with the Bank’s Core Procurement Principles and ensure that the Bank’s Anti-Corruption Guidelines and Sanctions Framework and contractual remedies set out in its Legal Agreement apply. 51. The PPSD for the SOP describes how procurement arrangements will enable delivery of value for money in achieving the PDO. The planned procurement activities for KiWI SOP 1 and KiWI SOP 2 include works for an urban park and consultancies for design and supervision of works, analytical and technical studies, and surveys. Activities will involve sustainable procurement considerations for social inclusion, green construction, and ‘Crime Prevention through Environmental Designs’. It is anticipated that there will be a clear target market for all procurements and that the target markets are willing and 17 IPF = Investment Project Financing. Page 24 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) able to respond competitively. The procurement arrangements do not include complex arrangements requiring specialized skills. 52. Procurement will be undertaken by a dedicated procurement specialist within the Procurement Department of JSIF. The Procurement Unit is experienced in implementing and managing the procurement activities and aspects of World Bank-financed projects, as JSIF is currently implementing two World Bank-funded projects (P166279 and P146965) and recently concluded implementation of another (P146460). However, implementation experience under these previous projects shows weaknesses in procurement planning and inefficient management of the procurement processes due to a highly bureaucratic internal structure. The execution of the procurement function is decentralized across two departments—Technical Services and Standards and Procurement—and activities are subject to approvals by up to five internal committees before procurement can commence. Contract awards are then subject to review by up to two internal committees if valued at over J$10 million (approximately US$65,000), with additional external approval required from the Cabinet, through JSIF’s parent ministry for contract awards greater than J$60 million (US$387,000). Though well-staffed, the Procurement Department manages all procurement for the organization, using four sets of procedures, including two from the World Bank, which has led to some confusion and errors that also cause delays. Integrity and oversight structures are in place, including a functioning internal audit unit and well-functioning external bodies for external audit and procurement oversight. The effectiveness of external oversight is hampered by the lack of an established national Procurement Review Board to hear appeals for procurement complaints. Mitigation measures for identified risks include (a) ensuring that the POM details the workflow and decision hierarchy along the procurement cycle; estimated timelines for procurement processes to inform procurement planning; and procedures for handling complaints where non-Bank Standard Procurement Documents are used, internal approvals, and record keeping; (b) ensuring that the PIU is staffed with a dedicated procurement specialist experienced with the Procurement Regulations and international procurement; and (c) ensuring that new staff take available e-learning programs within three months of onboarding. 53. The World Bank will carry out procurement post reviews on an annual basis with an initial sampling rate commensurate with the risk rating of the project. This rate will be adjusted periodically during implementation based on JSIF’s performance and risk. The World Bank will also carry out procurement supervision missions on a semi-annual basis. The PIU will upload procurement and contract information in STEP, which will provide the World Bank with a list of all contracts for goods, works, and consulting and non-consulting services awarded under KiWI SOP 1. The post-review contract sample will be selected from STEP. . C. Legal Operational Policies @#&OPS~Doctype~OPS^dynamics@padlegalpolicy#doctemplate Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Area OP 7.60 No Page 25 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) D. Environmental and Social 54. The Environmental and Social Risk Classification (ESRC) of the KiWI SOP 1 is considered substantial since it will support the conceptual and detailed technical or engineering design of the green, resilient, and inclusive waterfront development and small-scale infrastructure works and urban upgrading in the project area, bordering the Kingston waterfront. An intended output of KiWI SOP 1 is to prepare the required environmental and social instruments for the eventual investment (KiWI SOP 2). Considering the current available information, the environmental risk classification is substantial under the World Bank Environmental and Social Framework (ESMF) based on the location, type, sensitivity, and scale of project intervention, nature and magnitude of potential E&S risks and impacts, and client capacity and ownership. The project area is urbanized and may be considered a brownfield redevelopment. The possible environmental issues associated with waterfront park development and small-scale infrastructure works and urban upgrading are general construction-related risks and impacts (noise, dust, water quality, solid and liquid waste, stormwater runoff, and turbidity) and worker health and safety. When and if the CERC is activated, E&S Screening will be conducted in line with the guidance of the ESMF. 55. The social risk classification of the KiWI SOP 1 is Substantial. While the operation is expected to bring positive benefits to both the Kingston waterfront and the surrounding communities, there are social risks related to the implementation of the infrastructure, which will be designed under it. Potential social risks include risks of social exclusion—including the exclusion of communities around the project physical area—safety, security, economic and physical displacement, interactions between contractor(s) and the public, traffic management, and risks related to chance findings of cultural heritage in the project area. Persons from the communities around the project area often feel excluded from decisions, development, and improvements because they are often not effectively consulted. Also, the waterfront improvements and the new park could lead to broader development in the area, which could push out the existing community (gentrification). The implications of some of the above-mentioned risks are far-reaching and include implications for safety and security. If socially included, it is believed that the members of the surrounding communities will ensure that users of, for example, the park are kept safe, thus contributing to reducing crime-related activities and the endeavor's social sustainability. 56. To address the above-mentioned potential risks and impacts, the project has developed an initial E&S review document covering the E&S setting of the proposed sites, possible E&S issues, and outlines of the E&S instruments to be prepared during KiWI SOP 1 implementation phase and required for the KiWI SOP 2 processing and implementation. In addition, a Stakeholder Engagement Plan (SEP), with its grievance mechanism and an Environmental and Social Commitment Plan (ESCP) have been prepared and agreed. The client has disclosed the draft SEP and ESCP on its website https://www.jsif.org/content/disclosure-documents. The SEP addresses the inclusion of vulnerable groups in the consultation process undertaken very early during project preparation and a summary of the results of those consultations and how their feedback has informed the project design. The consultation methodology ensures differentiated measures/methods for consulting vulnerable and disadvantaged individuals and groups. The SEP also encloses a feedback mechanism for vulnerable and disadvantaged groups so that, where feasible, their concerns will be integrated into the project design. The SEP and ESCP were disclosed on the Bank’s website on September 22, 2023 and May 28, 2024, respectively. As agreed in the ESCP, the current SEP will be updated and redisclosed no later than 90 days Page 26 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) following the Effectiveness Date of the loan agreement. Labor Management Procedures (LMP) will be prepared and disclosed no later than 60 days following the Effectiveness Date of the loan agreement or prior to the hiring of project workers, whichever comes first. In addition, JSIF will ensure that the CERC Manual includes a description of the Environmental, Social, Health and Safety (ESHS) assessment and management arrangements including, a CERC ESMF Annex that shall be included or referred to the CERC Manual for the implementation of CERC Component, in accordance with the ESS. 57. KiWI SOP 1 will also lead to the preparation of the E&S instruments for KiWI SOP 2, which will include an Environmental and Social Impact Assessment (ESIA) with an Environmental and Social Management Plan (ESMP) for the waterfront development through a consultant firm independent of the design studies. These instruments may include, inter alia, an ESMF for Component 2 (Urban upgrading and economic development in Downtown Kingston), and Resettlement Action Plans, if any, to include an examination of the dimensions of vulnerability, in particular concerning direct and indirect impacts, which will feed into the design of subproject activities. The SEP and LMP will be further reviewed and updated as appropriate for KiWI SOP 2. 58. As set out in the Loan Agreement, JSIF shall establish and maintain a PIU, with qualified staff and resources to support management of ESHS risks and impacts of KiWI SOP 1. 59. The activities under Component 3 may include TA activities of type 3 (strengthening borrower capacity) according to the 2019 Operations Environmental and Social Review Committee Advisory Note on TA and the Environmental and Social Framework. The requirements set out in paragraphs 14–18 of ESS118 will be applied to TA activities as relevant and appropriate to the nature of the risks and impacts. 60. The World Bank will review the ESRC on a regular basis throughout the project life cycle to determine whether it continues to accurately reflect the level of risk the project presents. 61. Gender Gap analysis: Despite improvements in public safety in the city, perceptions of crime and violence oftentimes persist and deter the development and use of urban areas associated with criminal activity. The presence of multiple low-income communities in Downtown Kingston that form a perceived “belt” of insecurity between uptown Kingston and the waterfront area has constrained the development of Downtown and held urban residents back from enjoying the Kingston waterfront. Women tend to feel more at risk in the public space than men, preventing them from fully accessing and benefiting from the social and economic opportunities of the city. According to crime victimization surveys conducted by the Government, the church is the place that the highest proportion of men and women felt safe in, followed by home and personal vehicles. While the proportion of males and females who felt safe at home were similar, a higher percentage of men felt safer in public spaces, including in markets, parks, using an ATM on the street, or in a bar and club19. A further gap identified is women’s participation in public life: for example, only 29 percent of national parliament seats are held by women. 18ESS = Environmental and Social Standards. 19Ministry of National Security and Statistical Institute of Jamaica. 2019. Jamaica National Crime Victimisation Survey 2019 Report. Page 27 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) 62. Gender Actions: To address the identified gaps, the waterfront improvement will be designed to respond to women’s preferences, needs and design contributions as identified and prioritized through the gender-inclusive design process. This will go beyond improved lighting, clear unimpeded sight lines, and other elements drawn from gender-inclusive urban design and Crime Prevention Through Environmental Design Approaches20. Other elements will be incorporated in the park design to attract families, people of all ages and abilities, and women to the space, including: universal accessibility; restrooms; playgrounds; shaded resting areas; facilities for nursing mothers and baby changing stations, etc. To ensure that the design responds to the specific needs of girls and women, participatory workshops and stakeholder engagements will be conducted under KiWI SOP 1 to identify investments, design and activities to attract girls and women as one of the primary future users of the site and address their concerns about security and safety at the site. It is expected that both the participatory design process, as well as the outcomes of this process will empower women as agents and owners of the redevelopment, expand women’s social freedoms and interactions, and improve economic opportunities21. Stakeholder engagement and communication campaigns to advertise the new site, including through radio ads and special events, will specifically target girls, women and other vulnerable groups, and address perceptions of insecurity which may prevent them from accessing the site. 63. Gender Indicators: The indicators of the overarching SOP will measure women’s participation in the design process and importantly, their ability to influence the process and women’s use of the redesigned public space. Specifically • Women participating in the planning process who report that the design of the public space reflects their priorities (target: 70 percent) • Share of women visitors who report feeling safer at the improved waterfront (baseline 0, target 70 percent) (applicable for KiWI SOP 2) • Average daily visitors to the improved waterfront, percentage of which are women (applicable for KiWI SOP 2) 64. Climate considerations. KiWI SOP 1 will maximize the climate adaptation potential of the waterfront and set in motion a low-carbon development transition in Downtown Kingston. The Government envisions a green and resilient waterfront area that could be a model for the wider region. The designs for the improvement waterfront developed under this project will include the pedestrianization of Ocean Boulevard and creation of a waterfront park that prioritizes reuse of existing materials; use of low-carbon materials for construction; on-site renewable energy generation, and nature- based solutions to improve the resilience of the area. Any building financed under the KiWI SOP 2 will be designed to achieve relevant green building certifications (including, as appropriate, EDGE, LEED or other Zero Carbon Certifications). Under Component 2, the project will also finance designs to develop green solutions in the existing and new developments adjacent to the project site, including the installation of heat-reducing and green infrastructure; waste reduction and streetscape enhancement to promote active mobility. GHG reductions achieved through low-carbon design and construction will be estimated under this project, and accounted for through the application of a carbon impact assessment tool during KiWI SOP 2. Institutional strengthening activities will include targeted policy advice to incentivize green building retrofit in the waterfront area and the wider urban area. 20 https://www.cpted.net/ Page 28 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) 65. Citizen engagement. Citizen engagement will be key to the success of KiWI SOP 1. Local buy-in and ownership during the design and implementation process through consistent engagement and feedback will be ensured. Particular attention will be paid to engagement with vulnerable groups an indicator to measure the satisfaction of beneficiaries with capacity-building and training activities delivered under the KiWI SOP 1 from the second year of project implementation is included in the results framework. As part of urban revitalization efforts, informing and receiving real-time feedback for course correction from citizens, including civil society groups and private sector entities as well as direct and indirect beneficiaries in the wider catchment area, also through a grievance redress mechanism (GRM) will be ensured. The communication and outreach strategy will be in line with the SEP to be developed within the first three months after the project Effectiveness. V. GRIEVANCE REDRESS SERVICES 66. Grievance Redress. Communities and individuals who believe that they are adversely affected by a project supported by the World Bank may submit complaints to existing project-level grievance mechanisms or the Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the Bank’s independent Accountability Mechanism (AM). The AM houses the Inspection Panel, which determines whether harm occurred, or could occur, as a result of Bank non-compliance with its policies and procedures, and the Dispute Resolution Service, which provides communities and borrowers with the opportunity to address complaints through dispute resolution. Complaints may be submitted to the AM at any time after concerns have been brought directly to the attention of Bank Management and after Management has been given an opportunity to respond. For information on how to submit complaints to the Bank’s Grievance Redress Service (GRS), please visit http://www.worldbank.org/GRS. For information on how to submit complaints to the Bank’s Accountability Mechanism, please visit https://accountability.worldbank.org. VI. KEY RISKS 67. The overall risk for the overall SOP is Moderate. With respect to the World Bank’s Systematic Operations Risk-Rating Tool (SORT) categories, only two risks category were assessed as ‘Substantial’, as outlined below. The risk ratings will be reviewed and updated during project preparation. 68. The combined social and environmental risks are rated Substantial. Although KiWI SOP 1 is expected to generate significant social and environmental benefits, including for local residents, neighboring communities, and the city as a whole, potential risks are related to social exclusion, chance findings of cultural heritage in the project area, gentrification, as well as possible negative effects associated with the construction of the park (noise, dust, water quality, solid and liquid waste, etc.) and worker health and safety. KiWI SOP 1 will mitigate these risks by putting in place effective mechanisms for community engagement; designing activities under Component 2 specifically to enable existing businesses to take advantage of the new development (thus avoiding economic displacement), as well as Page 29 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) providing the relevant training on E&S risk management to staff and contractors to adequately respond to any potential negative effects related to civil works. 69. Institutional Capacity for Implementation and Sustainability Risk is Substantial. Weak institutional capacity—including overlapping agency mandates, limited technical capacity for implementation, and lack of clear lines of accountability and authority—have constrained previous attempts to redevelop the waterfront and downtown areas. Weaknesses relate to technical resources, complex and lengthy approval processes, and the need to coordinate a set of stakeholders, including the private sector, with different interests. Moreover, the institutional arrangement of KiWI SOP 1, including both JSIF and the UDC as implementing agencies for different project components, may give rise to additional coordination challenges. Competing development priorities such as the construction of the Government Oval Campus in Kingston may also divert essential technical and financial resources. Finally, in terms of sustainability, putting in place a robust O&M mechanism for the long-term management of the waterfront park will be critical. KiWI SOP 1 seeks to mitigate these risks with targeted TA through Component 3 aimed at strengthening institutional capacities and inter-institutional coordination related to planning and redevelopment initiatives. Additionally, the POM will clarify the roles, responsibilities and accountabilities of the implementing agencies and stakeholders contributing to project implementation. . Page 30 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) VII. RESULTS FRAMEWORK AND MONITORING @#&OPS~Doctype~OPS^dynamics@padannexresultframework#doctemplate PDO Indicators by PDO Outcomes Baseline Closing Period Designs for a green, resilient, and inclusive waterfront Measures included in the design of the waterfront improvement to mitigate and adapt to climate change (Number) Sept/2024 Nov/2029 0.00 5.00 Conceptual and detailed design for the waterfront improvement completed (Number) Sept/2024 Nov/2029 0.00 2.00 Urban upgrading and economic development in Downtown Kingston People reached with economic development opportunities under the project (Number) Sept/2024 Nov/2029 0.00 200 ➢Of which women (Percentage) Sept/2024 Nov/2029 0 60 Designs for basic infrastructure and urban upgrading completed (Number) Sept/2024 Nov/2029 0.00 50.00 Enhance the institutional capacity to enable future private sector-led redevelopment Cities with improved livability, sustainability, and/or management (Number) Sept/2024 Nov/2029 0.00 1.00 Intermediate Indicators by Components Page 31 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) Baseline Closing Period Designs for a green, resilient, and inclusive waterfront Designs for new or rehabilitated public space in Kingston and St. Andrew Parish prepared for construction in accordance with climate and disaster-resilience standards (Number) Sept/2024 Nov/2029 0.00 3.00 Urban upgrading and economic development in Downtown Kingston Women participating in the planning process who report that the design of the public space reflects their priorities (Percentage) Sept/2024 Nov/2029 0 70 Beneficiaries satisfied with training received under the project (Percentage) Sept/2024 Nov/2029 0.00 60.00 ➢Beneficiaries satisfied with training received under the project, of which women (Percentage) Sept/2024 Nov/2029 0 60 Young men participating in the planning process who report that the design of the public space reflects their priorities (Percentage) Sept/2024 Nov/2029 0 70 Consultations held for the design of the park and interventions under component 2 (Number) Sept/2024 Nov/2029 0.00 60.00 Enhance the institutional capacity to enable future private sector-led redevelopment Operations & Maintenance Plan developed for the improved waterfront (Yes/No) Sept/2024 Nov/2029 No Yes Public-Private Partnership models and strategies to promote Downtown urban regeneration developed (Yes/No) Sept/2024 Nov/2029 No Yes Project management Grievances responded to in the stipulated time (Percentage) Sept/2024 Nov/2029 0.00 60.00 Contingent Emergency Response CERC established and ready to provide access to financial resources in case of an eligible crisis or emergency (including climate- and health-related events) (Yes/No) Page 32 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) Sept/2024 Nov/2029 No Yes Page 33 of 58 The World Bank Kingston Waterfront Improvement Project - SOP 1 (P179642) Monitoring & Evaluation Plan: PDO Indicators by PDO Outcomes Designs for a green, resilient, and inclusive waterfront Measures included in the design of the waterfront improvement to mitigate and adapt to climate change (Number) This indicator measures the number of measures included in the design of the waterfront improvement to optimize climate change mitigation and adaptation elements (e.g. energy efficiency, low-carbon design, greater permeability of Description infrastructure, adapting to risks related to sea level rise and storm surges by rehabilitating the seawall, adapting to extreme temperature by increasing tree coverand shade areas, coastal resilience etc.) Frequency Upon completion Data source Completion report, prepared by JSIF Methodology for Data Completion report, prepared by JSIF Collection Responsibility for Data JSIF Collection Conceptual and detailed design for the waterfront improvement completed (Number) Description The indicator measures the completion of conceptual and detailed design for the waterfront improvement. Frequency Annually Data source Progress report, prepared by JSIF Methodology for Data Progress report, prepared by JSIF Collection Responsibility for Data JSIF Collection Urban upgrading and economic development in Downtown Kingston People reached with economic development opportunities under the project. Beneficiaries are people working for MSMEs that benefit from training, technical assistance, in-kind support and small- Description scale infrastructure under component 2 of the project Frequency Semi-annual Data source Progress report, prepared by JSIF Methodology for Data Progress report, prepared by JSIF Collection Responsibility for Data JSIF Collection People reached with economic development opportunities under the project, of which women (percentage) Share of female beneficiaries are people working for MSMEs that benefit from training, technical assistance, in-kind Description support and small-scale infrastructure under component 2 of the project Frequency Semi-annual Data source Progress report, prepared by JSIF Methodology for Data Progress report, prepared by JSIF Collection Responsibility for Data JSIF Collection Designs for basic infrastructure and urban upgrading completed (Number) Description The indicator measures the number of designs for the basic urban infrastructure and upgrading completed Frequency Upon completion Data source Completion report, prepared by JSIF Methodology for Data Completion report, prepared by JSIF Collection Responsibility for Data JSIF Page 34 of 58 The World Bank Kingston Waterfront Improvement Project - SOP 1 (P179642) Collection Enhance the institutional capacity to enable future private sector-led redevelopment Cities with improved livability, sustainability, and/or management (Number) CRI Description Corporate Results Indicator Frequency Upon completion Data source Completion report, prepared by JSIF Methodology for Data Completion report, prepared by JSIF Collection Responsibility for Data JSIF Collection Monitoring & Evaluation Plan: Intermediate Results Indicators by Components Designs for green, resilient, and inclusive waterfront Designs for new or rehabilitated public space in Kingston and St. Andrew Parish prepared for construction in accordance with climate and disaster-resilience standards (Number) Description Designs for new or rehabilitated public spaces prepared for construction under SOP 2 Frequency Upon completion Data source Completion report, prepared by JSIF Methodology for Data Completion report, prepared by JSIF Collection Responsibility for Data JSIF Collection Urban upgrading and economic development in Downtown Kingston Women participating in the planning process who report that the design of the public space reflects their priorities (Percentage) This indicators measures whether the priorities of women as expressed during the planning process are reflected in the Description final designs of the public space Frequency Upon completion Data source Completion report, prepared by JSIF Methodology for Data Completion report, prepared by JSIF Collection Responsibility for Data JSIF Collection Young men participating in the planning process who report that the design of the public space reflects their priorities (Percentage) This indicators measures whether the priorities of young men as expressed during the planning process are reflected in Description the final designs of the public space Frequency Upon completion Data source Completion report Methodology for Data Completion report, prepared by JSIF Collection Responsibility for Data Completion report, prepared by JSIF Collection Beneficiaries satisfied with training received under the project This indicator will measure beneficiaries' satisfaction with and relevance of capacity building and training activities Description delivered under component 2 of the project. Frequency Semi-annual Data source Progress report, prepared by JSIF Methodology for Data Progress report, prepared by JSIF Collection Page 35 of 58 The World Bank Kingston Waterfront Improvement Project - SOP 1 (P179642) Responsibility for Data JSIF Collection Beneficiaries satisfied with training received under the project, of which women This indicator will measure the share of female beneficiaries' satisfaction with and relevance of capacity building and Description training activities delivered under component 2 of the project. Frequency Semi-annual Data source Progress report, prepared by JSIF Methodology for Data Progress report, prepared by JSIF Collection Responsibility for Data JSIF Collection Consultation held for the design of the park and interventions under component 2 (Number) The indicator will measure community consultation and participatory design workshops held to inform design decisions Description under Component 1 and 2 Frequency Semi-annual Data source Progress report, prepared by JSIF Methodology for Data Progress report, prepared by JSIF Collection Responsibility for Data JSIF Collection Enhance the institutional capacity to enable future private sector-led redevelopment Operations & Maintenance Plan developed for the improved waterfront (Yes/No) Description This activity is supported under the project. Frequency Upon completion Data source Completion report, prepared by JSIF Methodology for Data Completion report, prepared by JSIF Collection Responsibility for Data JSIF Collection Public-Private Partnership models and strategies to promote Downtown urban regeneration developed (Yes/No) Description This activity is supported by the project Frequency Semi-annual Data source Progress report, prepared by JSIF Methodology for Data Progress report, prepared by JSIF Collection Responsibility for Data JSIF Collection Project management Grievances responded to in the stipulated time (Percentage) The indicator will measure the proportion of grievances responded to in the stipulated time, as defined by the safeguards Description document, related to components 1 and 2. Frequency Semi-annual Data source Progress report, prepared by JSIF Methodology for Data Progress report, prepared by JSIF Collection Responsibility for Data JSIF Collection Contingent Emergency Response CERC established and ready to provide access to financial resources in case of an eligible crisis or emergency (including climate- and health- related events) (Yes/No) Description The Intermediate Target will measure readiness for CERC activation, which will include developing the following in the Page 36 of 58 The World Bank Kingston Waterfront Improvement Project - SOP 1 (P179642) CERC Operations Manual: (i) mechanism for activating the CERC; (ii) main instruments under the CERC (e.g. template for Rapid Needs Assessment, draft Emergency Action Plan) ; (ii) coordination and implementation arrangements; (iii) procurement, financial management and disbursement aspects; (v) compliance with safeguard policies; and (vi) monitoring and evaluation. Readiness will be maintained throughout project implementation by regular capacity building activities and updating of the CERC Operations Manual, as appropriate. Frequency Annual Data source Progress report, prepared by JSIF Methodology for Data Progress report, prepared by JSIF Collection Responsibility for Data JSIF Collection Page 37 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) ANNEX 1: Implementation Arrangements and Support Plan COUNTRY: Jamaica Kingston Waterfront Improvement Project 1. The GOJ will be responsible for the overall SOP implementation through the PIU within JSIF, supported by UDC as lead technical agency for Components 1 and 3, while a PSC will provide overall strategic guidance for project implementation. JSIF, as the implementing agency, will build on the DVRP and ICDP activities and the experience from implementing other World Bank-financed projects. The role and mandate of the PSC in coordinating with other government, private sector and civil society stakeholders during implementation of the SOP will be specified in the POM. 2. A dedicated PIU will be established within JSIF under the strategic oversight of the JSIF MD to perform the day-to-day implementation activities, including contract management, procurement, FM, E&S safeguards, citizen engagement, and M&E. The PIU will be staffed with a mix of JSIF civil servants and external specialists to be engaged by KiWI SOP 1, as needed. The following PIU staff will be dedicated to the KiWI SOP 1: Project manager and technical expert (engineer/architect), environmental specialist, social specialist, M&E specialist, financial management specialist and a dedicated procurement specialist. Further staffing considerations will be specified in the POM. 3. The UDC will serve as the lead technical agency for Components 1 and 3 , and JSIF will serve as the lead technical agency for Component 2. KiWI SOP 1 will support the engagement of qualified consulting companies to support the UDC in investment design and contract supervision elements (KiWI SOP 1). The UDC will not execute funds under the proposed project. 4. JSIF will implement KiWI SOP 1 in accordance with a POM, which will be prepared in consultation with the World Bank and will set forth the guidelines and specific procedures for carrying out KiWI SOP 1. The POM will include (a) the detailed description of all SOP activities supported under the Legal Agreement, (b) the eligibility of beneficiaries under Component 2, (c) the implementation arrangement model, (c) the sequencing of activities and a planned timetable for the activities, (d) the ESMF, (e) the procurement and FM arrangements for KiWI SOP 1, (f) the coordination arrangements governing the day-to-day execution of KiWI SOP 1, and (g) the M&E data collection and reporting arrangements. For any additional support and the provision of TA and/or staff to increase capacities through the KiWI SOP 1, additional technical assistance funds will be explored. 5. Effective communication will be critical to achieving successful implementation, including broad-based information and dissemination campaigns and proactive stakeholder engagement, especially in the early stage of implementation to reach out to potential beneficiaries and engage community input during the design process. As such, JSIF will also be responsible for citizen engagement and will work together with the UDC to organize stakeholder meetings and provide information to the public to explain KiWI SOP 1 goals, benefits, and implementation progress, disseminating and addressing Page 38 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) feedback from the community as well as the GRMs. JSIF should also ensure equal participation of women in all community engagement processes. 6. Ensuring sufficient technical staff within the participating agencies to implement the various project components effectively will be critical. The POM will include the project team’s organizational structure and describe the duties and responsibilities of all staff responsible for the project’s technical, administrative, FM, procurement, E&S management, and M&E procedures. In addition, due to the nature of the proposed project, effective interinstitutional coordination and proactive involvement of all government entities early in the life of the proposed SOP will also be critical for the success of KiWI SOP 1. 7. JSIF. Established in 1996 as a limited liability company to reduce poverty and help create an environment for sustainable development, JSIF has recognized executing capacity for projects spanning multiple sectors, including rural development, and institutional capacity related to procurement, FM, safeguards, and M&E. JSIF will establish a PIU that will be responsible for overall technical implementation and will coordinate with all relevant national institutions on component implementation. JSIF has been the implementing agency of numerous World Bank projects including the ICDP (2014–2021) and the ICBSP (2005–2013); the DVRP (P146965), the REDI Project (P105122), and the REDI II Project (P166279). 8. UDC. The UDC is an agency of the Ministry of Economic Growth and Job Creation (MEGJC), which reports to the Prime Minister (PM), and is responsible for urban development within designated areas. In UDC designated areas, including the Kingston waterfront, planning and development approvals only need to be coordinated with one other government body (the National Environmental and Planning Authority, NEPA), before being sent for approval by the PM—thus making the planning and implementation of urban development priorities more efficient and less cumbersome. The UDC will provide technical leadership and ensure effective coordination with project partners related to implementation of Components 1 and 3. Among the key roles and responsibilities of the UDC are: (a) leading the urban design studies; (b) reviewing consultant deliverables as relevant: (c) monitoring of project implementation progress; (d) exercising supervision and oversight and participating in key meetings, providing the required approvals in accordance with the regulatory framework; (f) consulting and garnering the support and endorsement of the KSAMC and relevant agencies; and (g) obtaining the required approvals from NEPA. The UDC was established in March 1968 by an act of Parliament to ensure the development of Jamaica in a sustainable and holistic manner, within the framework of national priorities. The UDC’s designated areas include Downtown Kingston, Hellshire, Caymanas, Ocho Rios, Montego Bay’s Waterfront, and Negril. Along with extensive work in these areas, the UDC has planned, managed, and facilitated projects on behalf of government agencies and other organizations supporting improvements to national infrastructure for education, public health, housing, culture, commercial activity, and national security. The UDC manages the Tax Incentive Programme for Urban Renewal on behalf of the MOFPS, aimed at stimulating urban renewal by encouraging private capital investment. Page 39 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) Figure 1.1 SOP Implementation Framework A. Institutional Framework Page 40 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) B. JSIF/PIU Organigram Procurement 9. Procurement will be undertaken by a dedicated procurement specialist within the Procurement Unit of JSIF. JSIF will ensure that the PIU is adequately supported by the legal, procurement, standards, technical, and any other relevant internal business units. A procurement specialist will be dedicated to the PIU for at least two years and/or as long as it takes to procure the detailed design, supervision and construction of the waterfront park, after which a procurement officer dedicated to multiple World Bank projects will be considered. The procurement specialist assigned to the PIU should have relevant experience with international procurement. 10. Procurement will be carried out in accordance with the World Bank’s Procurement Regulations for IPF Borrowers dated September 2023. There will be due consideration for ‘Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants’, dated July 1, 2016, and other provisions stipulated in the Loan Agreement. In accordance with Paragraph 5.9 of the Procurement Regulations, the World Bank’s STEP system will be used to prepare, clear, and update procurement plans and monitor all procurement transactions for the project. The World Bank’s Standard Procurement Documents will be used for all contracts that are subject to international competitive procurement. 11. An assessment of the use of national procurement procedures was concluded in August 2023, which resulted in the Bank’s acceptance of the use of national procedures when approaching the national market, subject to certain conditions. These include: the incorporation of specific provisions in the agreed national procurement documents to ensure the application of the World Bank’s Anti-Corruption Page 41 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) Guidelines, Sanctions Framework, and legal remedies, including without limitation the Bank’s right to sanction and the Bank’s inspection and audit rights; requiring bidders/proposers to present a signed acceptance of the Bank’s Anti-Corruption Guidelines and associated rights, at the time of bidding, to be incorporated in any resulting contracts; use of the national documents for international competitive bidding for goods, works and consulting services, to ensure eligibility to all bidders and consultants; provisions to adequately mitigate against environmental and social (including SEA/SH), risks and impacts, as determined by the relevant Environmental and Social instruments for the Project; and ensuring that contract award notices include at minimum, the details specified in paragraph 5.94 of the World Bank Procurement Regulations. Paragraph 2.1 in Appendix III of the World Bank Procurement Regulations will apply, and the minimum standstill period shall be 10 business days. The detailed conditions are specified in the Procurement Plan. 12. In accordance with paragraph 5.8 of the Procurement Regulations, electronic procurement will be used by JSIF through the Government of Jamaica’s electronic procurement system, “Government of Jamaica Electronic Procurement (GOJEP)”, for aspects of the procurement processes, including issuing Procurement Documents and addenda, receiving and issuing clarifications, receiving Applications/quotations/Bids/Proposals, evaluations and carrying out other procurement actions until contract award, provided that the mitigation measures stated in the Procurement Plan are followed. These include: non-acceptance of offline bids; ensuring that the bid opening record includes the minimum information specified in paragraphs 5.43 to 5.46 of the World Bank Procurement Regulations; electronic handling of clarification of procurement documents must comply with paragraphs 5.32 and 5.32 of the Procurement Regulations’ the Notification of Intention to Award must include the information required by paragraph 5.74 of the Procurement Regulations; the electronic handling of complaints must comply with paragraphs 3.27 to 3.32 of the Procurement Regulations and contract award notices must comply with paragraphs 5.93 to 5.95 of the Procurement Regulations. The detailed conditions are specified in the Procurement Plan. 13. JSIF may use Community Driven Development procurement methods to maximize community engagement under the project. A large number of small value contracts to execute social development projects in communities surrounding the waterfront and Downtown Kingston are foreseen, including after school activities, summer camps and other community interventions. Community labour and resources may be utilized in the execution of these contracts. The implementation will follow procedures outlined in JSIF’s Community Based Contracting Manual, as approved by reference in the Project Operational Manual. 14. The Procurement Plan for the first 18 months of implementation has been prepared and approved by the World Bank, based on the PPSD. A simplified PPSD has been prepared, which defines the applicable procurement arrangements, appropriate selection methods, including market approach, and type of review to be conducted by the World Bank. The PPSD describes how procurement in this operation will support the PDO and deliver value for money using a risk-based approach. The PPSD provides adequate supporting market analysis for the selection methods detailed in the Procurement Plan. Mandatory procurement prior review thresholds detailed in Annex I of the World Bank’s Procurement in IPF and Other Operational Procurement Matters are applied. The World Bank’s Procurement Regulations, the PPSD, and the Procurement Plan will provide a comprehensive framework Page 42 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) for conducting procurement under KiWI SOP 1. The Procurement Plan and PPSD will be updated annually, or as required, to reflect project implementation needs and improvements in institutional capacity and procurement risk. 15. Procurement processes will be mainly standard, and the procurement activities are of low to moderate complexity where the scope is certain and easily quantifiable. KiWI SOP 1 will include procurement activities of consultancies for the design and supervision of works, analytical and technical studies, and surveys. Activities will involve sustainable procurement considerations for social inclusion, green construction, and ‘Crime Prevention through Environmental Designs’. The procurement arrangements do not include complex arrangements requiring specialized skills. Community-driven procedures may be utilized to maximize community engagement under Component 2. 16. Based on the PPSD, there is a clear target market for all procurements. The target markets are generally willing and able to respond competitively, but the attractiveness of the procurement packages slated for execution in the Downtown Kingston area may be stymied by security risks. Nevertheless, JSIF has experience working in volatile areas, including Downtown Kingston, and will apply lessons learned in mitigating such concerns. Jamaica has a robust national market and system for registering contractors and suppliers and generally attracts strong interest from consulting firms nationally and internationally. 17. The procurement arrangements and procedures will be detailed and fully documented in the procurement section of the POM. The operational procurement arrangements will be based on the provisions of the Legal Agreement and as agreed between JSIF and the World Bank. The POM will include (a) the processing timelines for all procurement steps in a typical procurement process, (b) responsible officers for each procurement step, (c) JSIF’s hierarchy of approvals for procurement, (d) the Terms of Reference for the dedicated procurement specialist, (e) a reporting template for use in quarterly or semester reports, (f) sample shortlist and evaluation reports, (g) applicable templates, (h) procedures for community driven development, (i) procedures for publication of procurement data, (j) applicable procedures for treatment of taxes, (k) personnel hiring procedures, and (l) administrative procedures for procurement of operating costs. 18. Advance procurement. JSIF may wish to proceed with the procurement process before signing the Loan Agreement. In such cases, if the eventual contracts are to be eligible for World Bank IPF, the procurement procedures, including advertising, shall be consistent with Sections I, II, and III of the Procurement Regulations. JSIF undertakes such advance procurement at its own risk, and any concurrence by the World Bank on the procedures, documentation, or proposal for award of contract does not commit the World Bank to finance the project in question. All contracts awarded as advance procurement should include the signed Letter of Acceptance of the World Bank’s Anticorruption Guidelines and Sanctions Framework. 19. KiWI SOP 1 will require training and operating costs. KiWI SOP 1 will finance training such as workshops, as needed. Training will proceed according to training plans, which JSIF will submit to the World Bank for ‘no objection’ before implementation. Operating costs include reasonable operational expenses, which would not have been incurred absent KiWI SOP 1, related to project implementation, management, and supervision and incurred by the borrower, as defined in the Legal Agreement. Page 43 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) Dedicated project implementation support personnel will be treated as operating costs and selected according to the personnel hiring procedures of JSIF, as approved in the POM, in accordance with Circular 15, 2012 of the MOFPS, which was reviewed and found acceptable by the Bank. All operating costs will be based on periodic budgets to be approved by the World Bank and procured using administrative procedures acceptable to the World Bank as defined in the POM. 20. The overall procurement risk after mitigation is rated Moderate. The capacity of JSIF to undertake procurement and manage contracts was assessed in January and December 2023. The main risks identified relate to the internal bureaucracy of JSIF, including the fragmentation of key procurement functions across three units which causes delays; JSIF’s management of four sets of procurement procedures without specialization of officers, which causes errors; the potential for stymied market interest due to previous instances of volatility in the target area; and the lack of an established national Procurement Review Board to hear appeals for procurement complaints. JSIF commenced use of the GOJEP portal and should be proficient in its use by the commencement of SOP 1. Mitigation measures for identified risks include (a) ensuring that the POM details the workflow and decision hierarchy along the procurement cycle, estimated timelines for procurement processes to inform procurement planning, and procedures for handling complaints where non-Bank Standard Procurement Documents are used, internal approvals, and record keeping; (b) ensuring that the PIU is staffed with a dedicated procurement specialist experienced with the Procurement Regulations and international procurement; (c) ensuring that new staff take available e-learning programs within three months of onboarding; and (d) application of lessons learned in execution of activities in volatile areas. It is anticipated that JSIF’s use of the portal will help achieve operational efficiencies. Financial Management (FM) 21. An FM assessment for KiWI SOP 1 was conducted in accordance with the World Bank’s OP/BP 10.00 on Investment Project Financing (IPF) and the Financial Management Manual for World Bank IPF Operations (OPCS5.05-DIR.01 issued February 10, 2017). Under the OP/BP on IPF with respect to projects financed, the Borrower and JSIF are required to maintain FM systems—including staffing, budgeting, accounting, internal controls, funds flow, financial reporting, and auditing systems—adequate to provide the World Bank with assurance that funds will be used in an efficient and economical way to enable the PDOs to be met. The assessment concluded that the FM systems at JSIF meet the World Bank ’s requirements and should be able to provide with reasonable assurance, accurate and timely financial information on the status of the funds as required by the World Bank. 22. Risk assessment. JSIF has been implementing World Bank-assisted projects and is familiar with World Bank requirements on the maintenance of acceptable FM arrangements. The FM risk of the project before mitigating measures is assessed as Substantial, mainly due to (a) weaknesses in internal control procedures and accounting; (b) underutilization of the computerized accounting system multicurrency function and manual conversion for/and reporting; and (c) the inherent fiduciary risks associated with the integration of numerous stakeholders, as well as the long-term nature of infrastructure works and construction activities contracts and advances paid. Page 44 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) 23. However, the FM risk can be reduced to Moderate after the following proposed mitigating measures are implemented within the current FM system which will be reassessed during implementation: (a) appointment of a dedicated senior financial analyst who will receive continued training and guidance from the World Bank on FM and disbursement aspects of the project; (b) update of the existing JSIF Operations Manual to reflect project-specific arrangements; (c) implementation of cash basis accounting; (d) utilization of the computerized accounting system rate tables to allow electronic generation of US dollar information for financial reporting; (e) periodic FM reviews and field visits by the World Bank during project implementation; and (f) timely and accurate submission of quarterly IFRs and annual external and independent audit of project accounts. 24. Staffing. The Finance Department of JSIF is headed by the general manager finance and is supported by a finance manager, two senior financial analysts, and a team of finance officers/accounting clerks. The staff has the necessary background and experience to conduct their duties. Capacity building has been undertaken to strengthen the FM arrangements and will continue during implementation of this project. Responsibility for FM under KiWI SOP 1 will be specifically assigned to a senior financial analyst, who will have responsibility for ensuring appropriate and satisfactory FM arrangements are maintained for the project, preparing financial reports and bank reconciliations, and assisting in the preparation and monitoring of budgets. 25. Planning and budgeting. JSIF will ensure that fiscal space is requested for KiWI SOP 1 in the 2024/25 fiscal year supplementary budget and subsequent financial years. All expenditures to be financed by the World Bank under the project will be budgeted by JSIF which follows the government budgeting system. As the project executing agency, JSIF will establish a budget by subcomponent activities for the entire life of the project (master budget), which will be prepared in consultation with the World Bank. Annual budgets will be extracted from this master budget, which will follow the GOJ budgetary approval process and procedures. This will be prepared by the JSIF project coordinator who would seek input from the JSIF Procurement and Finance Department, and relevant project implementing partners such as the UDC. The agreed procedure will be documented in the POM. Once annual budgets are approved by the MOFPS, the budget will be included in the GOJ’s estimates of revenue and expenditures and reflected under the JSIF budget allocation. The master budget as well as the annual budget will be revisited periodically and updated as needed to reflect the status of implementation. Quarterly variance analysis (actual versus budgeted expenditures) will be prepared and provided as part of the IFRs. Variances are to be investigated and addressed. The rigorousness of these arrangements will enhance the budgeting process and accuracy of information reported. 26. Accounting. The accounting records of the project will be maintained by the JSIF Finance Department. The project will follow cash basis accounting, and all project expenditures eligible for financing, inclusive of taxes and duties where applicable, will be recorded in the computerized accounting system, Sage 300 ERP Premium Multicurrency system, which is capable of recording and reporting transactions in US dollars with conversion of local currency expenditures at the relevant drawdown exchange rate. Additionally, the Chart of Accounts will be built in the system following cash basis accounting. This will address previous accounting and reporting issues faced with other projects under implementation. The accounting system, Sage 300, is supported by a proprietary project management software system developed by JSIF named Fund Manager. A separate ledger for the project will be Page 45 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) created, and a chart of accounts designed to capture transactions by category and component and subcomponent activity. All supporting documentation will be maintained to facilitate ex post reviews and audits. 27. Internal controls. The POM will describe the internal control mechanisms to be put in place by JSIF to properly manage, control, and conduct oversight of the implementation arrangements, including financial and technical reporting. JSIF has established Operations Manuals (dated March 2004, revised March 2006) which outline all procedures to be followed by staff and include a Financial Management and Audit Procedures section. Additionally, JSIF has a Finance Department and an Accounting Policies and Procedures Manual (dated February 2019) with comprehensive guidance over the finance functions. An update of these manuals were conducted during 2023 to address previously noted issues in relation to the basis of accounting and reporting, accounting policies, and end-of-month procedures. 28. The relevant sections of these procedures will capture in sufficient detail all FM internal control procedures, assigned responsibilities, budget control, transaction recording, reporting frequency, and timelines. This includes but is not limited to procedures for segregation of duties, review and approval, bank accounts signing mandate, budget preparation and approval, authorization of expenditures, maintenance of records, safeguarding of assets (including cash), fixed assets verification, ledger and bank account reconciliations, and reporting. Project-specific information such as chart of accounts, the formats of the reports, and so on, will be added as part of the annexes to the POM. 29. Funds flow and disbursements. Disbursement of project funds will be processed in accordance with World Bank procedures as will be stipulated in the DFIL and the Disbursement Guidelines for Investment Project Financing, dated February 2017. The following disbursement methods will be available under the project: Advance, Reimbursement, and Direct Payment. Advances by the World Bank will be disbursed into a segregated DA denominated in US dollars to be held at the Bank of Jamaica and maintained by the MOFPS. Advances to the DA will be the primary method of disbursement and will be made based on the forecast of the project’s eligible expenditures for a period of six months, based on unaudited IFRs. Supporting documentation for expenditures made from the DA will also be based on the IFRs. As eligible expenditures are incurred, JSIF will withdraw the amount to be financed by the World Bank from the US dollar DA in accordance with the Loan Agreement. A segregated local currency account will be established in the name of JSIF at a commercial bank acceptable to the World Bank to finance project expenditures in Jamaican dollars. Funds will be periodically transferred from the DA to the segregated local currency account. Reporting on transfers from the DA and use of funds must be done in the same currency as that of the DA. The DA may also be used to finance expenditures in US dollars. These accounts will operate in accordance with the procedures and guidelines set forth in the World Bank’s Disbursement Guidelines. 30. The exchange rate in effect on the date funds were transferred out of the DAs to the local currency accounts should be used for all reporting purposes. Any foreign exchange losses arising from such transfers are not eligible to be financed. The amounts disbursed will be reported in subsequent withdrawal applications through IFRs. Page 46 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) 31. The minimum application size for Direct Payments and Reimbursements can be found in the project DFIL. 32. The proceeds of the loan will be disbursed against eligible expenditures in accordance with the financial plan of the project. All payments will be made by the Finance Department of JSIF once payment obligations have been incurred, verified, and properly documented. Detailed flow of funds arrangements is described in the POM. 33. Financial reporting. JSIF will be responsible for producing and submitting IFRs to the World Bank covering each calendar quarter, along with the accounting records from which they are prepared and bank reconciliation statements. These reports will provide the required monitoring information and will be used for disbursements. All transactions will be reported on a cash basis. The IFRs will disclose receipt and utilization of project funds during the quarter and cumulative from project inception to reporting date. The format and content of the quarterly IFRs will be agreed upon during project negotiation and included in the POM and the project DFIL. The IFRs will be submitted to the World Bank no later than 45 days after the end of each reporting period. Upon completion of all project activities and payments and as part of the final deliverable (Final Progress Report), JSIF will submit to the World Bank a consolidated report on the use of funds for deliverables, showing offsets for any paid advances and any uncommitted balance to be refunded. 34. The IFRs prepared by JSIF will be made available to external auditors. JSIF will also prepare annual financial statements which will include the projects sources and uses of funds, a detailed analysis of project expenditures, a schedule of withdrawal applications during the year, reconciliation of the DA, and notes to the financial statements. Training will be conducted to ensure staff has the required knowledge to prepare accurate reports and to electronically submit them via Client Connection. 35. Auditing. The external audit of the project will be conducted annually by the Auditor General Department, Jamaica. The Auditor General’s Office has performed adequately in the past in terms of quality and timely delivery of the audit reports provided. The annual audit report will include an opinion on the project’s financial statements, including cumulative figures for the year and as of the end of the fiscal year, DA reconciliation, review of the internal controls, review of the Borrower’s compliance with the terms of the Loan Agreements, and a Management Letter. 36. The project’s annual audit report comprising the financial statements and Management Letter along with the response from the project on the audit observations and remedial action plan to address any weaknesses, if any, will be submitted to the World Bank for review no later than six months after the end of the Government’s financial year, March 31. The timely submission of the audit reports will be monitored by the World Bank. In accordance with the World Bank’s disclosure of information, the audited financial statements will be made publicly available. 37. Supervision plan. FM implementation support missions will include on- and off-site visits and will be conducted at least twice per year focusing on the adequacy of the FM system to ensure that funds are used for the intended purposes with due regard to economy and efficiency. Based on the level of FM risks at the time of FM supervision, the reviews may include any or all of the following: (a) review of project Page 47 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) accounting and internal controls systems; (b) budgeting and financial planning arrangements; (c) review and verification of specific transactions; (d) review of bank reconciliations; (e) analysis of IFRs in relation to the funds disbursed by the World Bank; and (f) review of internal audit reports, including remedial actions recommended in the auditors’ Management Letter. The IFRs will be reviewed by the World Bank every quarter and the annual external audit report will be reviewed by the World Bank annually. Issues arising from these reports will be used to review and adjust the scope of the planned FM implementation support. 38. Conclusion. The FM risk of the project before mitigating measures is assessed as Substantial. The mitigation strategies to address the key weaknesses and risk include: (a) appointment of a dedicated senior financial analyst; (b) update of the existing JSIF Operations Manual to reflect project-specific arrangements; (c) implementation of cash basis accounting; (d) utilization of the computerized accounting system rate tables to allow electronic generation of US dollar information for financial reporting; (d) periodic FM reviews and field visits by the World Bank during project implementation; and (e) timely and accurate submission of quarterly IFRs and annual external and independent audit of project accounts. The project’s residual FM risk is assessed as Moderate after mitigating measures. The project will have adequate FM arrangements in place that can provide, with reasonable assurance, accurate and timely financial information on the status of project funds. 39. Safeguards. The implementation of the ESMF will be consistent and aligned with the SOP’s implementation arrangements to ensure that identification and mitigation of risks are incorporated efficiently during the SOP implementation. This includes programming the safeguards screening and assessments according to contract packages. A dedicated Safeguards Monitoring Section will be established in the PIU to ensure the strict and proper implementation of the ESMF throughout the project cycle. The Safeguards Monitoring Section will be staffed by designated PIU safeguards specialists. The institutional arrangements for safeguards implementation will be reflected in the ESCP and in the loan agreement. Implementation Support Plan (ISP) and Resource Requirements 40. The World Bank will provide implementation support to the PIU and UDC throughout the SOP. This support will include (a) monthly virtual implementation support missions, (b) periodic technical discussions and field visits by the World Bank, (c) monitoring of the PIU reporting on implementation progress and achievement of results, (d) review of the quarterly FM reporting, and (e) review of the periodic updates of the Procurement Plan. 41. Overall approach to implementation support. Implementation support for the overall SOP will be provided by the World Bank, consisting of staff with relevant competencies in urban development, project operations, procurement, finance, M&E, and safeguards. The World Bank will conduct implementation support missions every six months (at a minimum) throughout the SOP’s implementation period. Implementation support missions will include field visits to verify physical implementation and compliance with the processes as stated in the POM. Additional support will include frequent coordination Page 48 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) with the PIU for updates on implementation performance and progress. The World Bank will monitor progress of the following: (a) achievement of results indicators; (b) overall and component-specific project implementation progress; (c) proper fiduciary management of all activities carried out by the PIU; (d) safeguards compliance; (e) reconciliation of payments with contracts; and (f) monitoring compliance of key legal obligations. The World Bank will also mobilize staff and consultants who will directly support project implementation with specialized TA, as needed. 42. The World Bank will work closely with the PIU to ensure the Borrower’s compliance with the World Bank’s fiduciary and safeguards policies and to monitor progress in achieving SOP’s outcomes. The PIU will prepare progress reports, work plans, and financial reports, as well as reports on implementation issues, among others, and transmit them to the World Bank. Financial Management 43. The World Bank’s FM specialist will provide timely and effective support to the PIU. The project will be monitored through (a) desk reviews of audit reports, IFRs, and status of action plans agreed with counterparts following visits or audit findings, if any, and (b) on-site reviews of the continuous adequacy of the project FM arrangements. These will include monitoring and reviewing the status of implementation of any agreed actions and issues identified by the auditors, including other issues related to project accounting, reporting, budgeting, internal controls, and flow of funds. A review of a sample of transactions will also be conducted during supervision missions or on-site monitoring reviews. Procurement 44. The World Bank’s Procurement Specialist will provide timely and effective support to the PIU to facilitate compliance. 45. Procurement Plan & PPSD. A Procurement Plan for the first 18 months of the project has been developed as part of the PPSD preparation. A simplified PPSD has been prepared to define the applicable procurement arrangements, appropriate selection methods, including market approach, and the type and frequency of reviews to be conducted by the World Bank. Each amendment to the Procurement Plan will be submitted for clearance through STEP, supported by an updated PPSD, which will also be submitted via the STEP platform. 46. Procurement Post Review. The Bank will carry out procurement post reviews on an annual basis with an initial sampling rate commensurate with the risk rating of the Project. The Bank will also carry out procurement supervision missions on a semi-annual basis. The PIU will upload procurement and contract information in STEP, which will provide the Bank with a list of all contracts for goods, works, and consultants’ services awarded under the Project. The post review contract sample will be selected from STEP. 47. Procurement prior review. The prior review thresholds applicable to Moderate risk projects, listed in table 1.2, will apply to the project in the first instance. The applicable thresholds will be adjusted according to any updates to the procurement risk rating during implementation. All World Bank-financed Page 49 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) contracts estimated to cost at or above the thresholds stated in Table 1.2 shall be subject to the World Bank’s procurement prior review. Even below the prior review thresholds, the project team will provide extensive procurement support and handholding to the borrower’s staff to support them in conducting procurement. Table 1.2. Procurement Prior Review Thresholds for Substantial Risk Projects (US$, millions) Type of procurement High risk Substantial risk Moderate risk Low risk Works (including turnkey, supply 5 10 15 20 & installation of plant and equipment, and PPP) Goods, information technology, 1.5 2 4 6 and non-consulting services Consulting services: firms 0.5 1 2 4 Consulting services: individuals 0.2 0.3 0.4 0.5 Environment and Social Safeguards 48. The World Bank’s E&S safeguards specialists will provide technical support and oversight throughout implementation of KiWI SOP 1, including guidance in the preparation of required safeguards instruments (ESMF, ESMPs, and Environmental Codes of Practice). Semi-annual assessments on safeguards compliance from the E&S specialists will be conducted through the implementation support missions and field visits. The PIU will receive support from the World Bank to prepare relevant E&S documents and instruments, conduct due diligence processes, and monitor the timely preparation of E&S assessments and management instruments, which must be completed before any physical activity can commence. During project implementation, the World Bank will monitor the project’s environmental and social safeguards performance, provide timely advice, and work closely with the PIU on areas for improvement on a continuing basis. The World Bank will also provide capacity-building support to the PIU, Borrower’s institutions, and partner agencies. The PIU will ensure that a functioning GRM is in place. 49. Midterm Review (MTR). An MTR will be carried out halfway through project implementation to review the Results Framework and achievement of targets, SORT ratings, FM reports, procurement activities, safeguards compliance, disbursement status, and other relevant items. In preparation for the MTR, an independent review of implementation progress will be carried out, including beneficiary assessments, as appropriate. The MTR will provide recommendations on any potential changes or restructuring necessary to improve the project’s relevance, efficacy, or efficiency. 50. Implementation Completion and Results Report (ICR). To evaluate project outcomes, an ICR will be drafted by the Borrower and the World Bank within six (6) months of project completion. Project evaluations and beneficiary assessments may be conducted as part of the ICR process but will take account of the SOP approach and the fact that the results framework was designed for the overall SOP. ICRs are tailored to enhance development effectiveness through a continuous process of self-evaluation, lesson learning and application, knowledge sharing, and accountability for results. The lessons learned Page 50 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) from ICRs improve the quality and effectiveness of World Bank operations, while Borrower/stakeholder participation in the ICR process informs the design, preparation, and implementation of potential follow- on projects. ISP and Resource Requirements 51. The ISP is based on the preliminary estimates of the skill requirements, timing, and resource requirements throughout the project implementation period of the project. As the needs of the PIU evolve over time, the ISP will be reviewed annually to ensure that it provides the required support. Tables 1.3 and 1.4 indicate the level of inputs and staffing needed to provide implementation support for KiWI SOP 1. Table 1.3. ISP Time Focus Technical Skills Needed Partner Role First 18 months • Support to PIU • Contract • World Bank to • Successful start of the management, support smooth start- project across all procurement, FM, up components E&S risk • Ensure the • Technical design management, citizen implementation of procurement engagement, ESS are on track • FM systems communication, and • Support the PIU functioning M&E. • Procurement • Establishment of M&E system • Monitoring of implementation of project activities 18–36 months • Ensure adequate • Contract • Ensure safeguards are implementation management, on track support of all aspects procurement, FM, • Support PIU of the project E&S risk • Provide TA • Monitor management, citizen implementation of engagement, project activities, communication, and including site visits M&E. • Support final evaluation and ICR Table 1.4. Skills Mix Required Skills Needed Number of Number of Trips Comments Staff Weeks Task team leaders 20 5 International or field- based staff Page 51 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) Urban specialist (Architect) 20 5 International or field- based staff Private sector development specialist 20 5 International or field- based staff Municipal engineer 10 2 International or field- based staff Technical specialist (community 10 2 International or field- engagement and gender aspects) based staff Environmental specialist 10 2 International or field- based staff Economist (M&E) 5 1 International or field- based staff Social specialist 10 Local STC field-based staff Procurement specialist 20 Local Field-based staff FM specialist 10 Local STC field-based staff Country office operational support 10 Local STC field-based staff Consultants for infrastructure 15 Local STC field-based staff Consultant for safeguards 15 Local STC field-based staff Consultant for communications 15 Local STC field-based staff Note: STC = Short-Term Consultant. Page 52 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) ANNEX 2: Key Impacts Related to Public Space Investments Economic impacts. Public investment in well-designed and well-managed public spaces yield significant returns by catalyzing new development, increasing property values, raising tax revenues, and increasing spending on goods and services in adjacent areas. In addition, public space and park investments create jobs and foster local economic growth. For example, a study of the economic impact of investments in riverfront parks in Boston, Atlanta, Cincinnati and Chattanooga showed returns on investment ranging from 6:1 to 40:1 (Riverlife 2015. Three River Park Economic Analysis). In Seoul, the creative reuse of abandoned railway infrastructure land to create the Gyeongui Line Forest Park saw a doubling of adjacent local businesses, with average monthly sales per shop increasing by more than 150 percent (Kaw, Jon Kher, Hyunji Lee, and Sameh Wahba. 2020. The Hidden Wealth of Cities). In Washington, DC, it is expected that by 2040, the Capitol Riverfront development will have generated a cumulative net fiscal impact of US$8.3 billion since 2007 —a return of nearly US$7.40 per every initial dollar invested by the District (RCLCO. Riverfront Recaptured. How public vision & investment catalyzed long-term value in the Capitol Riverfront, 2018.). Property values surrounding the Brooklyn Bridge Park (New York City), have more than doubled since the conception of the park plans, from US$725 per square foot to the current US$1,800 (Brooklyn Heights Association Statement on Proposed Modification to the Modified General Project Plan for the Brooklyn Bridge Park Project. 2016. Recovered). The urban transformation of Puerto Madero, in Buenos Aires, stimulated the job market and led to the creation of more than 4,000 construction jobs per year over 20 years (Garay et al. 2013. Puerto Madero. A Critique. Lincoln Institute of Land Policy: Washington DC.). Health impacts. Park access is associated with increased levels of physical activity across several studies, especially among youth. Conversely, physical activity and physical and mental health and well-being has consistently found strong positive associations, including, importantly, among children. For example, a recent report demonstrates that a US$6.9 billion capital investment in urban green infrastructure in the United Kingdom would deliver US$252 billion in physical and well-being benefits to the most disadvantaged communities in the United Kingdom (The Coalition of Urban Transitions. 2020. The Economic Case for Greening the Global Recovery Through Cities). Similarly, the Florida Park System estimated US$118 million in health care cost savings. Moreover, outdoor working environments, which apply to much informal employment, can result in productivity losses during hot weather of 60–70 percent. Urban green spaces reduce heat exposure and lower temperature in outdoor and nearby indoor spaces. Environmental impacts. Parks and urban green spaces can serve as a natural way to increase urban resilience to the effects of climate change. Urban parks have an established impact on air quality and the presence of a developed tree canopy can counteract some of the temperature increases caused by the urban heat-island effect. Additionally, decreasing the amount of impervious surface area and increasing the amount of grassy and vegetative surfaces contribute to decreases in temperature as well. Green spaces can also serve a crucial role in protecting against flood risk by reducing runoff and improving water filtration. For example, the Brooklyn Bridge Park design took into consideration climate change and rising sea levels, and its topography, soil, and native vegetation choices helped to protect the park—and surrounding neighborhoods—from damages stemming from Hurricane Sandy. Finally, urban parks can contribute to urban emission reductions by sequestering carbon and reducing residential electricity use. For example, in a study of 35 Chinese cities, green spaces amounting to just over 6 percent of urban land use sequestered around 18.7 million tons of carbon a year, while, in the United States, forests, croplands, and urban trees currently offset 11.5 percent of carbon emission in the country (The Coalition of Urban Transitions. 2020. The Economic Case for Greening the Global Recovery Through Cities). Social impacts and violence reduction. Urban parks are important assets for recreation and leisure, promote urban and community development, and facilitate social cohesion by creating space for social interactions and connecting diverse neighborhoods. Urban parks can provide the venue for out-of-school programs which lead to higher self-esteem, greater academic achievement, and lower instances of delinquency among participating Page 53 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) youth. Importantly, investments in public space and neighborhood upgrading can contribute to substantial reductions in violence: in Medellin, Colombia, the decline in homicide rate was 66 percent greater in neighborhoods receiving public space and infrastructure upgrading investments, compared to control neighborhoods, and resident reports of violence decreased 75 percent more (Cerda et al. 2012. Reducing violence by transforming neighborhoods: a natural experiment in Medellín, Colombia. Am J Epidemiol). Communities in Medellin with a new Library Park, combining a library building and park land, also experienced a 17 percent higher employment rate growth than other neighborhoods (Volkmann, S., 2018. The Role of Library Parks as Places of Learning and Culture in the Transformation of the Learning City of Medellín, Colombia. UNESCO). Page 54 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) ANNEX 3: Examples of Investment under KiWI SOP 2 COUNTRY: Jamaica Kingston Waterfront Improvement Project Component 1 Proposed investments Estimated costs Public buildings and amenities Certified green buildings (potential of EDGE, LEED, SITES or ILFI Zero US$10,000,000 Carbon Certification, to be determined during the design process), including, amongst other: - Multipurpose community centers - Multipurpose market and event spaces - Public toilets including changing rooms, lactation rooms - Public safety kiosk with 24-hour lighting, emergency phone, information that promotes safety and security; such kiosks could also include public health information and/or sponsor monthly or periodic clinics to serve communities To reduce embodied carbon impact adaptive reuse of vertical structures (e.g., shipping containers) and existing materials will be explored Green and resilient infrastructure Pedestrianization of Ocean Boulevard; implementation of embodied US$3,000,000 carbon reduction strategies including reuse of existing materials (pavement, seawall, piers) Permeable and natural walkways, that aid in stormwater drainage and are US$2,000,000 designed for physical accessibility, such as for parents/guardians pushing strollers, elderly (who may need rails and/or ramps instead of stairs), and visually impaired persons Resilient and ‘green’ infrastructure including retention pools and floodable US$2,000,000 park areas, for improved stormwater management and erosion control Rehabilitation of the seawall to increase resilience US$5,000,000 Recreational facilities, such bike paths and playground with landscaping, US$1,000,000 designed in a gender-inclusive way Streetscapes US$2,000,000 - Street furniture and landscaping including native plants for shade - Covering of exposed street-level drainage and sewage channels - Energy-efficient streetlighting to improve personal safety and access, especially for women and youth - Signage to provide information on existing helplines or services to report cases of harassment or perception of danger - Wayfinding signage, such as corner kiosks with a large map of the broader waterfront and historic and/or cultural heritage facts - Placemaking and place management investment/activities Component 2.1 - Future investments, financed under SOP 2, will include (i) street US$4,000,000 scaping, widening, rehabilitating, and permeable paving for roads or sidewalks to reduce surface runoff and promote active Page 55 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) mobility; (ii) improving stormwater drainage; (iii) installing LED street lighting; and (vi) making investments to increase accessibility, promote active mobility, and road safety (for example, improved sidewalks, crosswalks, and signage). Page 56 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) ANNEX 4: Project Map COUNTRY: Jamaica Kingston Waterfront Improvement Project Page 57 of 58 The World Bank Kingston Waterfront Improvement Project (P179642) Page 58 of 58