seq_id,Seq
1,STRATEGIC CONTEXT A.
2,Country Context 1.
3,Chile has a population of 19.5 million.
4,"The population is highly concentrated in the Santiago Metropolitan Region, which represents 2 percent of the territory but accounts for 40 percent of the population."
5,"It is characterized by a diverse demographic composition, with indigenous peoples making up 12.8 percent of the population."
6,1 This demographic complexity contributes to the nation’s vibrant cultural tapestry and the ongoing pursuit of social inclusivity.
7,"Chile underwent significant social and political changes marked by widespread protests since October 2019, demanding improved social services."
8,"Initially buoyed by the fiscal response to COVID-19, the Chilean economy is now returning to long-standing growth challenges."
9,Economic activity showed signs of stabilizing in the second half of 2023.
10,Quarterly growth projections indicate a real GDP growth of around 1.5-2 percent in 2024 and 2-2.5 percent in the medium term.
11,"At the same time, inflation sharply accelerated in 2022, driven by demand pressures amid an overheated economy."
12,This was exacerbated by high energy prices and global supply shocks.
13,"Chile has lowered income poverty, but inequality remains high."
14,"The proportion of the population living on less than US$6.85 a day (2017, PPP), dropped from 29.9 percent in 2006 to 8.0 percent in 2020, and to 4.8 percent in 2022."
15,Inequality (Gini of .43 in 2022) remains high.
16,Unemployment at 8.5 percent at the end of 2023 is 0.6 percent higher than in 2022.
17,Climate change is posing an additional threat to Chile’s economy and particularly women.
18,"According to the Global Climate Risk Index 2021, the country is in the top 25 of countries most vulnerable from extreme weather changes.2 Extreme events such as floods and droughts are already having a significant impact on Chile’s economy.3 Between 1965-2019 four major droughts have been recorded in the country with losses that on average exceeded US$ 1 billion."
19,Drought accounted for a 0.69 percent GDP loss in 2019 alone.
20,"During the same period, the country also experienced 37 floods with an estimated loss of over US$ 5 billion."
21,"Climate models project an increase in frequency of climate change-exacerbated floods (potentially damaging and life-threatening) and drought hazard levels.4 For example, rainfall data for Central Chile show deficits of 80-90 percent for the year 2019,5 indicative of dire water availability challenges."
22,"As recently reported by the National disaster prevention and response service (Servicio Nacional de Prevención y Respuesta ante Desastres, SENAPRED) during June and August, 2023, central southern Chile was inundated with floods that resulted in a “State of Catastrophe” declaration as it was the second major flood in 8 weeks.6 Moreover, the country faced devastating wildfires in February 2024, which further exacerbated the vulnerability of the population and the economy, particularly affecting rural and indigenous communities where women play a central role in agriculture and family sustenance."
23,"In Chile, women are generally affected more adversely by the impact of these natural disasters and climate change as they tend to have less access to emergency shelters and are more vulnerable to gender- based violence, which often increases in disaster situations."
24,"1 The Mapuche constitute the largest group, numbering nearly 1.8 million individuals, while the Aymara and Diaguita follow with 156,000 and 88,000 individuals, respectively."
25,"Current patterns reveal a consistent growth in the urban indigenous population, with 88 percent of indigenous individuals residing in urban areas, in contrast to 12.2 percent living in rural regions."
26,"2 Kreft, S./ Eckstein, D./ Melchior, I."
27,(2021): Global Climate Risk Index 2021.
28,Available at:  1460f32bb3ad/Global%20Climate%20Risk%20Index%202021_1.pdf 3 Chile (2020).
29,Nationally Determined Contribution:  Chile%20First/Chile%27s_NDC_2020_english.pdf 4 ThinkHazard!
30," 5 Long-Term Drought Parches Chile – NASA  6 Floodlist, August 2023: Chile – Over 30,000 Evacuate Floods in 6 Regions:    The World Bank Chile's Water Transition (P179117) B."
31,Sectoral and Institutional Context 5.
32,"Water availability is scarce in various areas of the country, and the potential impacts of climate change, combined with water quality issues, may reduce the country’s ability to meet growing water demands."
33,"The total availability of renewable surface water is estimated at about 48,286 m3 per capita per year with remarkable differences between the north and south."
34,"From the central metropolitan region to the north, water availability per capita7 is at a mere 800m3 per year."
35,"With all surface water resources already allocated, semi-arid regions like Coquimbo face frequent water conflicts and the constant threat of groundwater overexploitation."
36,"Between the O’Higgins and La Araucanía regions, water availability improves, but deficits can still occur during dry years."
37,"From the Los Rios region to the southernmost point, water is abundant, but demand is low."
38,Climate change projections indicate a high probability of reduced rainfall in the central regions.
39,The water resources management system has been struggling to manage these growing conflicts and adapt to the changing climate conditions.
40,"Traditionally, the allocation of water resources has been done through a water market system (introduced in 1981 with the enactment of the Water Code)."
41,This approach successfully encouraged water- related investments and improved water use efficiency.
42,"However, it also gave rise to some water management issues, such as the need to reconcile economic incentives with the protection of the public interest and to balance the role of the State and the private sector in managing a resource that is crucial for sustainable development (World Bank, 2011)."
43,"Despite undergoing reforms in 2005, 2018, and 2022, water management still requires further strengthening to better cope with growing water resource demand and water extremes, including both floods and droughts (See Technical Assessment Report)."
44,"Traditionally, decisions on water investment and allocation have been driven by market incentives, often prioritizing short-term economic gains at the expense of long-term sustainability (World Bank, 2012)."
45,"At the river basin level, planning weaknesses (See Technical Assessment Report) make it difficult to develop sustainable water services, impacting the reliability of these services under future climate conditions and the integration of different investment projects."
46,"Water security is influenced by climate change, water resource mismanagement, and issues in water-related services, disproportionately affecting vulnerable groups, especially women: a."
47,"Water supply and sanitation: Chile has achieved close to universal access to safe drinking water8 (99.9 percent of the population) and sanitation (96.7 percent) in urban areas with a rate of wastewater treatment of 99.9 percent, making it one of the most advanced countries in the region on this front, along with Uruguay."
48,"On the other hand, according to the Socioeconomic Characterization Survey (CASEN) of 2017, 28 percent of rural households do not have access to safe sanitation solutions such as sewerage and septic tanks, while 18 percent of them access water through unsafe sources (water trucks, river, lake, or other source)."
49,"Water contamination from surface run-off and floods can result in negative public health outcomes for residents, thus creating a climate-linked challenge."
50,"Rural Drinking Water Committees (Comités de Agua Potable Rural, APRs), responsible for the provision of these services, frequently face difficulties in maintaining and expanding services particularly to dispersed rural areas, due to limited financial resources, technical expertise, and governance capacities."
51,"To bridge the water service gap in water scarce areas, the GoC has turned to costly solutions such as water trucks."
52,"Between 2010 and 2016, the State spent US$ 130 million on renting water trucks to supply 400,000 people."
53,"7 Water availability per capita refers to the amount of water resources, typically measured in cubic meters, that is available per person within a specific region or county, and it is one of the most fundamental water-scarcity indicators in the global water resources management agenda."
54,"8 Urban WSS utilities in Chile are regulated by the Superintendence of Sanitary Services (Superintendencia de Servicios Sanitarios, SISS)."
55,"SISS ensures access to drinking water in quality, quantity and continuity, as well as sanitation as established in the regulations, at a fair and sustainable price, seeking efficient use, caring for the environment, cooperating with the governance of water resources, and promoting transparency in the market."
56,"  The World Bank Chile's Water Transition (P179117) b. Irrigation: Chile has made significant progress in improving the efficiency of water use in agriculture, particularly through the adoption of modern irrigation methods such as drip and microjet systems."
57,"The amount of land using these methods has increased from 93,000 hectares in 1997 to approximately 900,000 hectares today (almost 50 percent of the total productive land).9 This shift to modern irrigation has been supported by the Government and has allowed for an increase in land dedicated to high-value crops such as fruit trees and vineyards."
58,"However, modernization has on occasion led to a reduction in water returning to rivers and aquifers, with potential negative consequences for other users and ecosystems."
59,"In these cases, farmers in lower parts of river basins have lost access to water that was previously available to them."
60,"It is important to note that approximately 57 percent of the irrigation systems in the country are inefficient.10 Irrigation projects frequently become isolated solutions, lacking assessments of climate risks and their impact across the basin."
61,"Therefore, integrated water resource management within watersheds is essential to promote sustainable irrigation practices and prevent resource overexploitation, while continuing to incorporate climate resilience into irrigation projects to better adapt to ongoing climate change-exacerbated water scarcity and rainfall deficits (See Technical Assessment Report)."
62,Ensuring irrigation resilience to climate change is vital for social equity.
63,"Female farmers, often reliant on farming as their primary income, face greater disaster vulnerability compared to males."
64,"Chile has approximately 178,724 women in agriculture (27 percent of the agricultural workforce; 2019).11 Despite their contributions, women often lack decision-making authority in community water management, even though they play a critical role in water use, conservation, and management."
65,c. Flood and landslide risk management: Climate change also contributes to the occurrence of floods and landslides.
66,"In June and August 2023, heavy rainfall caused a national emergency, leading to fatalities, property damage, and disruptions in education and water supply systems."
67,Traditional flood control infrastructures have been the GoC’s response.
68,"However, with urban sprawl and increasing demand for green and recreational areas, there is a growing need to integrate these solutions with natural solutions that can improve livelihoods and promote biodiversity conservation."
69,"Women are not only affected disproportionately by water-related disasters, but they are underrepresented in planning and implementation of interventions for flood and landslide risk management Policies and programs often overlook gender-specific concerns and needs, highlighting the need for increased female involvement in decision-making at both river basin and national levels."
70,These water security challenges will require improving the capacity and coordination of Government institutions working in water.
71,"In Chile, the Ministry of Public Works (Ministerio de Obras Públicas, MOP) is responsible for water resources management and for the provision of rural water supply and sanitation (WSS) services, irrigation infrastructure (with the Ministry of Agriculture, MINAGRI), and flood protection by maintaining, rehabilitating, and developing public infrastructure services and water resources."
72,"To achieve these water-related tasks, MOP houses two Directorates, Directorate-General for Water (Dirección General de Aguas, DGA) and the Directorate of Hydraulic Works (Dirección de Obras Hidráulicas, DOH)."
73,"DGA is responsible for water use planning, management, and allocation."
74,"DOH is tasked with planning, design, and construction of hydraulic infrastructure, including dams, canals, and irrigation systems."
75,"Within the DOH, the Sub-Directorate of Rural Water Supply and Sanitation Services (Subdirección de Servicios Sanitarios Rurales, SSR) is responsible for infrastructure development as well as for the provision of technical support to rural water supply providers."
76,"Additionally, the Ministry of the Environment (MMA) is responsible for water quality monitoring and 9 Ministerio de Agricultura."
77,VIII Censo Nacional Agropecuario y Forestal.
78,"10 Donoso, G. (2018)."
79,Water Policy in Chile.
80,"New York: Springer 11 ODEPA, 2019."
81,Panorama de la Agricultura Chilena.
82,   The World Bank Chile's Water Transition (P179117) climate change adaptation policies.
83,Both Ministries and their corresponding units have been working to keep pace with the above-mentioned challenges in water resources management and water service provision.
84,Recent reforms have tasked the DGA with growing responsibilities in the management of water resources.
85,"In 1981, the water code assigned to the DGA the responsibility to regulate and oversee water resource allocation, use, and conservation, including the management of water use rights, infrastructure, regulation enforcements, and data collection."
86,"The 2018 reform granted the DGA the power to regulate and revoke usage rights, and to establish a system for immediate data transmission from water control and measurement devices.12 The 2022 reform13 strengthened the DGA’s role, focusing on human consumption, environmental protection, and sustainable management."
87,"The DGA can now terminate unused water rights,14 impose ecological flows,15,16 and reduce extractions for source sustainability,17 prioritizing human consumption."
88,"Additionally, the DGA manages water resources and monitors aquifers, but resource limitations and data gaps hinder effective oversight."
89,These increased responsibilities require more staff and enhanced technical capacity in order to promote a better coordination and data sharing for informed water management strategies.
90,"Similarly, in 2017 Chile’s rural water service provision model transferred responsibilities for rural water supply to the DOH."
91,"The Law N°20,998 (Ley de Servicios Sanitarios Rurales), adopted in January 2017 and regulated in 2019, dictates that the DOH and its SSR are responsible for the provision of technical support to rural water supply providers, including the registration of rural WSS service providers, the creation of a single rural WSS investment unit (Ventanilla Única), and the design and implementation of a rural WSS Information system."
92,"Under this Law, the SSR is now responsible for both rural water and sanitation18 and for providing technical assistance and training to rural water service providers, which was previously handled by urban water utilities through an ""agreement"" with DOH."
93,To fulfill this new mandate DOH has been slowly increasing its staff but will still need to develop strong technical capacities.
94,"The implementation of the Law continues to encounter challenges, including the reluctance of APRs to achieve registration and licensing targets."
95,"Finally, the GoC has tasked the MMA to play a more prominent role in the management of water resources and contribute to a multisectoral perspective on water management."
96,"Chile’s MMA has traditionally played a role in the water sector by developing and enforcing environmental regulations (mostly for water quality), conducting environmental impact assessments for water projects, overseeing conservation efforts to protect water ecosystems, 12 Law N°21.064, which reforms the Water Code with the aim of strengthening the role of DGA; published on ."
97,"13 Law N°21,435, which reforms the Water Code, was enacted into law by its publication in the Official Gazette on ."
98,"14 Article 6 bis from Law N°21,435."
99,"The rights of water use shall be totally or partially terminated if their holder does not make effective use of the resource in the terms set forth in Article 129 bis 9 from Law N°21,435."
100,"In the case of consumptive rights of water use, the termination period will be five years."
101,"15 Article 129 bis 1 from Law N°21,435."
102,"With respect to the rights to water use to be granted, the DGA shall ensure the preservation of nature and the protection of the environment."
103,"To this end, it shall establish a minimum ecological flow, for which it shall also consider the relevant natural conditions for each surface source."
104,"16 Article 307 bis from Law N°21,435."
105,"The DGA may require the installation of systems for measuring the flows extracted, the ecological flow referred to in Article 129 bis 1 and a system for transmitting the information obtained, in accordance with the rules established by the Service, to the holders of rights to use surface water or user organizations that extract water directly from natural channels for public use."
106,"17 Article 62 from Law N°21,435."
107,"If the exploitation of groundwater causes a degradation of the aquifer or a part of it, to the point that it affects its sustainability, the DGA must limit the exercise of the rights of water use in the degraded area at the request of one or more affected parties."
108,"18 Before Law N°20,998, the legal framework for rural water supply was limited to only one article in the MOP Law N°382 of 1989."
109,"The DOH's Subdirectorate of Water was responsible for implementing the Rural Drinking Water Program, with a mandate solely for water."
110,"Licenses were renewable and granted for a set period to an organization for water rights, while community organizations (committees and cooperatives) managed and provided water services in concentrated and semi- concentrated areas."
111,"Technical assistance was provided by water companies through ""agreements"" with regional governments for the design, construction, improvement, and expansion of infrastructure."
112,"After the regulation of Law N°20.998, a specific legal framework was established for the integral provision of water, sanitation, and wastewater treatment services."
113,The Subdirectorate of Rural Sanitation Services (SSR) was created within the DOH of the MOP with comprehensive responsibilities.
114,  The World Bank Chile's Water Transition (P179117) and leading the national policy on climate change mitigation and adaptation.
115,"Today, the GoC has requested a more prominent contribution from MMA in water related tasks to broaden a water infrastructure centric vision."
116,"The GoC has designed a transformational US$ 1,872.3 million program which places water security as a top priority in the political agenda."
117,"This program, known as the Just Water Transition (Transición Hidrica Justa, THJ) program, aims to tackle both institutional and infrastructure gaps, addressing both water resources management and water service provision challenges."
118,"On the institutional side, the aim is to promote river basin governance centered on resilience, ecosystems, and integrated planning."
119,"This will lay the ground for the improvement of a river basin governance structure (see Technical Assessment Report) and the development of planning instruments such as the River Basin Strategic Plans (Plan Estratégico de Recursos Hídrico en Cuencas, PERHC)."
120,"To begin this process, river basin working groups are being created."
121,The THJ program also works towards the improvement of water service provision through a renewed vision of water infrastructure development.
122,"Closing infrastructure gaps includes continuing to close rural WSS access gaps, ensuring sustainable irrigation practices, and lowering risk of flooding."
123,"To move the THJ agenda forward, the GoC has established a new inter-ministerial committee called the Committee for a Just Water Transition (Comité d Transición Hídrica Justa or THJ Committee)."
124,MMA is acting as the technical secretariat of the THJ Committee.
125,"The THJ Committee’s mandate is to guide the transition to a more sustainable and equitable management of water resources in Chile, considering the needs and perspectives of all stakeholders."
126,"The GoC has requested World Bank support, through a Program for Results (PforR or Program) operation, to support the implementation of this transformational program."
127,"The THJ program includes many new elements that are novel for Chile—including the creation of participatory water governance at basin level and the needed institutional and legal framework for adequate river basin management, the introduction of changes in the rural WSS service delivery scheme,19 and the introduction of Nature Based Solutions (NBS) in the traditionally grey hydraulic infrastructure portfolio."
128,"The GoC has requested World Bank support to guide the process, bringing international learning and global best practices to inform the implementation of the program."
129,C. Relationship to the CPS/CPF and Rationale for Use of Instrument 14.
130,The proposed Program is in line with the GoC's water agenda objectives as outlined under the THJ.
131,"The GoC’s objectives include climate change adaptation, sustainable resource management, and digital transformation."
132,The GoC is deeply committed to achieving water security and ensuring access to water services for the entire population.
133,"Chile has presented commitments during the UN Water Conference 2023 to advance global water security.20 These commitments include integrated water resource management (IWRM), water efficiency promotion, ecosystem restoration, and equitable access to drinking water and sanitation."
134,Chile also aims to reinforce female participation in decision-making and incorporate the principles of Valuing Water in their strategic plans for water resource management (WRM) through the strengthening of river basin governance.
135,"The Program aligns with the World Bank’s Country Partnership Framework (CPF) for Chile, FY2023-27."
136,"It addresses CPF Objective 5 to enhance water security by improving rural water supply and sanitation, optimizing water allocation, conservation, and developing green and gray solutions for climate resilience."
137,"It also directly supports the CPF's high-level objective (HLO) 2: Enhanced environmental sustainability and climate resilience, promoting comprehensive WRM that balances water demands, encourages sustainable water use, and considers surface and 19 The THJ program does not consider investments in rural sanitation infrastructure for the next five years; the current priority is to close the water supply access gaps in rural Chile, specifically in semi-concentrated localities."
138,20  pais/   The World Bank Chile's Water Transition (P179117) groundwater availability.
139,"The Program also aligns with the World Bank’s mission and Climate Change Action Plan, focusing on resilient cities, climate-smart land use, and water security, while contributing to reduce poverty and promote shared prosperity on a livable planet through water-related services for the vulnerable."
140,"The PforR is an optimal instrument to support Chile’s national transformational program, allowing the government to focus on results and strengthening country systems."
141,"The PforR instrument aligns financing with results, enhancing sector accountability through defined roles, transparent information, and public participation."
142,"Given that Chile's national system has consistently succeeded in achieving development objectives both effectively and efficiently, it is reasonable to capitalize on their strengths instead of introducing a parallel financing mechanism."
143,The PforR creates an avenue to enhance existing governance capacity and facilitate the development of an integrated results-based approach for financial reporting and budgeting in the sector.
144,"Additionally, the PforR allows the World Bank to continue its long-standing engagement in Chile around water (see Technical Assessment Report), provide targeted technical knowledge and international experience not only to refine and implement the novel areas of the GoC’s water agenda (IWRM, NBS, and rural WSS), but also to reinforce the coordination between inter-ministerial efforts."
145,The Program aligns with Chile's Nationally Determined Contribution (NDC).
146,"Chile’s NDC (published in 2020 and revised in 2022)21 aims for Greenhouse gas (GHG) neutrality by 2050, emphasizing an equitable transition to a climate- resilient economy."
147,It promotes water security through climate-resilient development and strategic water resource plans for river basins.
148,"The Program supports integrated water resources management and climate empowerment, aligning with Chile’s transition and sustainable development goals."
149,It increases access to rural water services and enhances adaptability and climate resilience through green and gray solutions.
150,"The Program complements Chile’s mitigation commitment to reduce GHG emissions to 95 MtCO2eq by 2030,22 as it focuses on improving water monitoring networks, modernizing systems, and enhancing water allocation efficiency, which can contribute to GHG reduction."
151,PROGRAM DESCRIPTION A.
152,Government Program 18.
153,The THJ program tackles multiple challenges in WRM and service provision through a water security approach (See Technical Assessment Report).
154,"The aim of the THJ program is to strengthen Chile's water governance, while also ensuring the fulfillment of population, environmental, and economic needs, and securing sustainability for current and future generations in today's changing climate."
155,"The government program translates into the below listed seven lines of investment programs with an estimated total value of US$ 1,872.3 million for the 2022-2027 period."
156,21 Chile presented the latest National Contribution to the Paris Agreement on  and in November 2022 the country strengthened its commitments through an annex that incorporates a contribution regarding methane emissions.
157,"  22 UNFCCC, 2020."
158,Chile’s Nationally Determined Contribution.
159,NDC Registry: Chile's_NDC_2020_english.pdf (unfccc.int)   The World Bank Chile's Water Transition (P179117) Table 1.
160,"GoC’s program lines of investment per THJ program thematic areas Government program World Bank-financed Program THJ program thematic Government programs Government Results Area as proposed by Bank Government areas budget US$ Program Agency million (1) Water institutionality Basin planning, support towards the Results Area 1: Strengthening including national implementation of basin management institutional capacity for integrated DGA (MOP) 82.7 institutionality and basin institutions, strengthening of water water resources management at the institutionality, including Information System national and basin levels."
161,"the protection of ecosystems Design of the water resources MMA and management (WRM) institutional 7.6 MOP reform at national and basin level (2) Resilient human Rural WSS services Results Area 2: Enhancing the consumption, including sustainability of rural water supply and SSR (DOH- Human Right to Water and 1,300.0 sanitation service providers through MOP) Sanitation institutional strengthening while, continuing to close access gaps."
162,(3) Multipurpose Storage and irrigation canals DOH (MOP) 260.0 Results Area 3: Building climate infrastructure for water resilience through the development of transition including the Urban flooding DOH (MOP) 160.0 green23 and gray solutions.
163,"protection of ecosystems Runoff and sediment management DOH (MOP) 60.0 Guidelines for Nature Based Solutions MMA 2.0 (NBS)24 Estimated Grand Total 1,872.3 20."
164,The roll-out of the program is led by an Inter-ministerial THJ Committee.
165,"The THJ Committee is led by the MMA, and composed of the Minister of Public Works, Minister of Agriculture, Minister of Energy, Minister of Science, Technology, Knowledge and Innovation, and the Minister of Mining— demonstrating the THJ program's goal of improving inter-institutional coordination for WRM and incorporating environmental considerations into the sector."
166,"The THJ Committee not only seeks to address ongoing water scarcity, but also to move towards the sustainable and equitable management of water."
167,The THJ Committee has an important role to pave the way for Chile's transition in managing water resources and ensuring the sustainable use and equitable allocation to meet the country’s growing water challenges amidst climate change.
168,"The THJ Committee assigned the MOP and MMA to lead the PforR with the World Bank, as described in Section C below."
169,"Promoting gender-equality, community participation, and beneficiary engagement is key to achieving and sustaining the THJ program results."
170,"The MOP and MMA have introduced participatory tools, placing strong emphasis on citizen engagement to promote participatory governance of water management, where the gender-equity approach will be included as a transversal axis, among others, in the National Water Security Policy."
171,23Green solutions may include NBS.
172,"24 Implementation of NBS falls under DOH CAPEX investments, as MMA does not implement NBS."
173,"The 2 million allocated by MMA to NBS concerns consultancy expenses for the development of NBS guidelines, etc."
174,See detailed Expenditure Framework in the Technical Assessment Report for more information.
175,  The World Bank Chile's Water Transition (P179117) B.
176,Theory of Change   The World Bank Chile's Water Transition (P179117) C. PforR Program Scope 22.
177,The proposed Bank operation (PforR or Program) will support key activities of the GoC’s program.
178,"While addressing climate change-exacerbated droughts, floods, and water scarcity, the PforR will focus on: (i) strengthening institutional capacities for the integrated management of water resources, including the implementation of a participatory water governance approach at basin level; (ii) improving safely managed drinking water and sanitation services in rural areas; and (iii) improving climate resilience through the development of integrated green and gray solutions for irrigation and flooding at basin level."
179,"The Program has a national geographic scope but excludes investments in new rural water supply, wastewater treatment, flood control, and irrigation infrastructure on international waterways, as well as investments that finance the expansion or alterations of such schemes in a way that would adversely impact the quantity or quality of water flows to other riparian countries (See paragraph 30)."
180,The Program activities have been structured in the following Program Results Areas (RA): 23.
181,RA1.
182,Strengthening institutional capacity for integrated water resources management at the national and basin levels.
183,"RA1 will support all the Borrower’s efforts to implement IWRM at the national and local levels, including the strengthening of the national water authority, the improvement of the water information, and the improvement of river basin governance."
184,"To achieve this, the GoC has aligned with international best practices and is taking a two-fold approach, intervening at both national and basin levels."
185,"• At the national level, the program includes institutional strengthening, water policy development, and water data generation."
186,"An institutional analysis that will serve as the basis for the strengthening of the national water authority (through the strengthening of DGA or the creation of a higher-level water authority), informed by previously conducted World Bank studies."
187,"The Program also includes the development of a proposal of a National Water Security Policy, which will guide the GoC’s vision and work program, and may also inform future river basin governance."
188,"Additionally, the RA includes implementation of a digital strategy to strengthen the Public Water Registry."
189,"This includes software development, construction of a water quality laboratory, and enhanced infrastructure for water monitoring, databases, models, and applications to bolster information availability and transparency, and to support water solutions for flood and drought risks at the territorial level and informed climate-responsive management."
190,"• At the basin level, the Program will support the design and implementation of IWRM key principles.25 The activities include the promotion of stakeholder involvement, integrated planning, and sustainable water use to improve quality and increase availability."
191,"Specifically, the Program will provide support for: (i) formalizing a river basin governance structure for the management of water resources at basin level; (ii) creating river basin working groups to advance in the improvement of basin water governance in selected basins; (iii) preparing River Basin Strategic Plans (PERHCs) for selected basins with a focus on mitigation of climate change impacts (drought and flood management); and (iv) compiling lessons learned on the process of strengthening water governance at the basin level and the planning exercise for scale up beyond the selected basins."
192,"As part of this RA, the Program also seeks to foster gender-equity, partnerships, and community engagement."
193,"To promote female representation, a Gender Assessment will be conducted by the DGA and MMA to identify barriers and opportunities for female participation in WRM activities and to identify measures that can be taken to promote and facilitate their participation in the river basin working groups."
194,"The Program will promote female participation in decision- making through technical trainings, leadership workshops, and awareness campaigns on gender equity in water policies."
195,25 The focus in on the implementation of Dublin’s Principles II and III on the need of a participatory approach for water management and the role of women.
196,The detail of these principles can be found in GWP 200 TAC background paper.
197,  The World Bank Chile's Water Transition (P179117) 25.
198,RA2.
199,"Enhancing the sustainability of rural WSS service providers through institutional strengthening, while continuing to close access gaps."
200,"RA2 will encompass all of the SSR efforts to increase access to sustainable rural WSS services, including institutional strengthening activities and investments in WSS systems."
201,• Institutional strengthening efforts are geared towards developing a strategic vision for rural WSS.
202,"The Program includes investments in: (i) the development of the Rural WSS Strategic Plan to 2030 to guide investment priorities, including the development of sanitation diagnostic studies, and evaluation of management approaches for rural WSS services which consider climate change effects like droughts and floods; and (ii) the design and implementation of an SSR information system on rural WSS which includes data compiling and reporting, and rural service providers registration."
203,"As part of this RA, the Program will gather disaggregated data on women’s involvement in APRs and take steps to boost their participation through activities like technical training, leadership workshops, and gender equity awareness campaigns in water services."
204,• This RA also seeks to contribute to closing the rural WSS access gap.
205,The Program aims to improve access to rural water by making substantial investments in the construction and rehabilitation of water supply systems.
206,"This includes the design, installation, expansion and/or rehabilitation of drinking water services.26 Given that rural households generally rely on surface water sources (rivers, springs, estuaries or lakes), groundwater (wells) and water trucks, the investments would potentially allow connection to pre-existing supply lines, reduce water losses and wastage, and therefore reduce vulnerability against future dry shocks."
207,"In the sanitation domain, the Program will conduct limited-scale pilots to test rural wastewater treatment solutions tailored to different geographic contexts."
208,"These wastewater treatment pilots will validate low-cost technologies for rural areas with sewage systems, manageable for APRs, and promote the incorporation of NBS where feasible."
209,"The Program will allow for the identification, detailed design, and construction of three pilots of alternative rural wastewater treatment technologies."
210,RA3.
211,Building climate-resilience through the development of green and gray solutions.
212,This RA aims at supporting the GoC’s efforts in the development of flood control and irrigation infrastructure.
213,This RA will also promote the incorporation of NBS into traditional hydraulic infrastructure development.
214,The Program will bring a new dimension to the traditional development of hydraulic infrastructure and improve the resilience and impact of hydraulic works.
215,"• The Program will support the GoC in integrating hydraulic infrastructure delivery as part of a river basin plan approach, improve the focus on infrastructure impacts, and improve the benefits and resilience of gray infrastructure."
216,"The Program includes: (i) the formulation of small and medium water storage plans, to maintain water supply for different uses, reducing the vulnerability to drought impacts; (ii) the rehabilitation of small irrigation storage reservoirs, which can capture runoff and reduce peak flows in rivers during rainfall season, making systems more adaptable to changing climatic conditions; (iii) the construction, rehabilitation, and modernization of primary irrigation canals, optimizing water conveyance systems to reduce water losses and ensure more reliable water availability; (iv) the development of basin-scale urban flooding master plans to identify flood-prone areas and systems that are flexible enough to accommodate changing climate conditions; and (v) the construction and rehabilitation of urban stormwater management schemes to reduce flood risk and landslides."
217,"• As part of this RA, the Program will develop national NBS guidelines and will promote the incorporation of NBS into at least two PERHCs and/or Flood Risk Management Plans (Planes de Manejo de Cauce, PMCauces) 26 Ministerio de Obras Públicas, 2023."
218,Manual de Proyectos Agua Potable Rural de la DOH: Criterios de Diseño de Agua Potable Rural.
219,"  The World Bank Chile's Water Transition (P179117) and/or Stormwater Master Plans (Planes Maestros de Aguas Lluvia, PMALL)."
220,It will also promote the early identification of specific NBS projects and support the incorporation of NBS in at least two project designs.
221,"Specifically, the Program will develop urban wetland management plans with a watershed approach in selected river basins."
222,"As part of all Results Areas and the strengthening of MOP, the PforR actively advances gender equity in the sector and has identified indicators to bridge gender gaps in the traditionally male-dominated hydraulic infrastructure sector."
223,"MOP is committed to advancing gender equality across its institutions and the water workforce, having recently released an Ethical Code emphasizing gender equity and balanced representation."
224,"To promote the hiring and retention of female professionals within the Ministry, MOP has conducted internal gender analysis, set objectives for each of its institutions, and established labor and sexual harassment guidelines."
225,"They are now working on individual Gender-Equity Policies for each institution, and within the PforR seek international insights through the World Bank’s Equal Aqua Platform.27 Focusing specifically on construction employment, MOP acknowledges both the economic and social opportunities within this sector and the existing gender disparity in access to jobs and leadership roles in this male- dominated industry."
226,"Between 2019 and 2023, the participation of women in the construction sector rose from 6 percent to 9 percent.28 Today, only 7 percent of front-line management positions are occupied by a woman, and only 9.7 percent of board seats are held by female professionals in Chilean construction companies.29 30 In the first half of 2023, the average participation of women in jobs generated by public works contracts tendered by the MOP was 9.4 percent.31 The MOP aims to reduce the employment gender gap in construction by implementing various measures for MOP contractors, including: (i) mandatory gender awareness training; (ii) sharing successful practices; (iii) providing unconscious bias training; and (iv) developing standard workplace and harassment protocols for contractor adoption."
227,"Progress will be measured through the following indicator: increase in female personnel participation in jobs generated by public works contracts tendered by the MOP, where the baseline is 9.4 percent and the MOP aims for a 15 percent female workforce in national-level public works contracts."
228,Community participation and beneficiary engagement is key throughout all Results Areas to effectively realize the Program development goals.
229,Chile’s current legislation strongly incorporates citizen participation in public decision- making processes.
230,The MOP and MMA’s existing citizen engagement mechanisms have been explored to ensure effective participation and meaningful consultations.
231,"The Program includes the implementation of appropriate participatory and consultation processes with all the stakeholders, considering not only the civil works but also the activities that involve the design of plans, policies, and new Institutions for water management at the river basin level."
232,"Some DLIs include public consultation or stakeholder consultation milestones, such as the development of the proposal of a National Water Security Policy and drafting of the Rural WSS Strategic Plan to 2030, respectively."
233,"To evaluate the effectiveness of RA 1, a beneficiary satisfaction survey of the newly created river basin working groups will be conducted at different intervals of project implementation to assess if participants are comfortable with the participatory decision- making processes employed."
234,"27 Established by the World Bank's Water Global Practice with support from GWSP and external partners, Equal Aqua aims to promote gender diversity and inclusion in the water sector."
235,"EA connects various stakeholders and provides tools to enhance female recruitment, retention, and promotion within water organizations."
236,"28 INE 2019, 2023 29 Ministerio de Hacienda, Ministerio de Economía, Fundación Chile Mujeres, OIT, 2023."
237,IV Reporte de Indicadores de Genero en Empresas en Chile.
238,"30 To bridge the gender gap in construction, the Chilean women's organization highlights the need for: awareness on harassment, strong sanctions, women-friendly infrastructure, work-life balance, mentoring, best practices, and addressing unconscious biases."
239,[Mujeres en Construcción 2019 – 2023.
240,Visibilizar y potenciar el rol de las mujeres que trabajan en sector de construcción] 31 This is measured through the MOP Employment Viewer.
241,This tool only collects the participation of women in jobs generated by public works contracts tendered by the MOP and does not specify the type of position held by women.
242,  The World Bank Chile's Water Transition (P179117) 29.
243,"The below table provides an overview of the GoC’s program, and the Program supported with World Bank financing, and how these align."
244,Table 2.
245,"Overview of the GoC’s program and World Bank supported Program Government program Program Reasons for non-alignment supported by the PforR (PforR Program) Objective To strengthen Chile's water Strengthening the Full alignment, except for measures that have high environmental governance, ensuring the fulfillment Borrower’s and social risks or which fall outside the PforR implementation of population, environmental, and capacity for WRM period."
246,"economic needs, while also securing and water-related sustainability for current and future services.33 generations in today's changing climate.32 Duration 2022-2027 December 2022- The Bank Program’s closing date extends beyond the timeframe of December 2028 the government program to account for the results from the last year of the government program."
247,"Geographic Nation-wide Nation-wide, Exclusion of investments in new rural water supply, sanitation coverage excluding (wastewater treatment), flood control, and irrigation interventions in infrastructure on transboundary waterways, as well as financing to transboundary support the expansion or alterations of such schemes in a way that waterways as per would adversely impact the quantity or quality of water flows to description below other riparian countries."
248,(see paragraph 30).
249,"Results The GoC’s program as described RA 1-3 Full alignment, except for (i) the significant infrastructure projects areas under the THJ strategy are reflected associated with high social and environmental risks that are not in the Program’s three Results included under the PforR’s Results Area 3, and (ii) interventions in Areas: RA 1, 2, and 3 international waterways under Result Area 2 and 3 as described below (see paragraph 30)."
250,"Overall US$ 1,872.3 million US$ 1,546.04 The difference in overall financing is attributable to infrastructure Financing million works with significant environmental and social risks and investments in transboundary waterways as per description below (see paragraph 30)."
251, International Waterways.
252,"The government program has a national geographical scope, where Chile has 44 shared watercourses with Argentina, 15 shared watercourses with Bolivia, and 5 shared watercourses with Peru."
253,These shared watercourses are considered international waterways for the purposes of the World Bank’s Operational Policy regarding Projects on International Waterways (OP 7.50).
254,"As agreed with the Government of Chile, the Bank financed Program also has a national scope, but activities on transboundary waterways are limited to rehabilitation investments that would not adversely affect the quality or quantity of water flows of the shared watercourse to other riparian countries or adversely affect other riparian countries’ possible water use as specified in the Environmental and Social Systems Assessment (ESSA)."
255,"More specifically, the Program will exclude financing support to investments in new rural water supply, sanitation (wastewater treatment), flood control, and irrigation infrastructure on international waterways, as well as investments to finance the expansion or alterations of such schemes in a way that would adversely impact the quantity or quality of water flows to other riparian countries."
256,"Furthermore, regarding the Government program, the GoC is committed to following established communication protocols with riparian countries and has sought Bank 32 The national water strategy, ‘Transición Hídrica Justa’, consolidates the different government programs of the DOH, DGA, SSR/DOH under the MOP, and MMA program."
257,"33 Water-related services include water supply and sanitation, irrigation, and flood and landslide risk management."
258,  The World Bank Chile's Water Transition (P179117) support to engage more actively on transboundary water matters.
259,The terms of reference for water resources studies related to international waterways supported by the Program will require the assessment of any riparian issues.
260,"Accordingly, the Program is processed according to paragraphs 7 (a) and (b) of OP 7.50."
261,The exception to the notification requirement was approved by the RVP on .
262,D. Program Development Objective(s) (PDO) and PDO Level Results Indicators 31.
263,The PDO is to strengthen the Borrower’s capacity for water resource management and water-related services.
264,A list of PDO-level results indicators has been identified to measure the achievement of the Program: • PDO 1: Improve the GoC’s WRM planning capacity at national level • PDO 2: Strengthen participatory water governance institutions in selected basins • PDO 3: Improve the GoC’s rural WSS planning capacity at national level • PDO 4: Increase access to safely managed rural drinking water services • PDO 5: Increase number of people at lower risk of climate change exacerbated floods E. Disbursement Linked Indicators and Verification Protocols 33.
265,The World Bank proposes nine Disbursement Linked Indicators (DLIs) which will trigger disbursements under the Program.
266,The DLIs concentrate on Program areas with transformation potential.
267,"The DLI matrix design (See Annex 1) puts emphasis on advancing needed institutional reform at the national level, providing incentives to advance on a river basin water governance structure, the proposal and approval of a National Water Security Policy, and the approval of a Rural WSS Strategic Plan to 2030."
268,"More importantly, incentives are placed on improving the integration of GoC’s investment effort with a basin approach, linking disbursement to an increase in percentage of DOH investment in basins with PERHCs."
269,"At the local level, DLIs aim to encourage infrastructure investments that are based on achieving results."
270,The Program will include the following nine DLIs: • DLI1: Creation of river basin working groups in selected basins.
271,• DLI2: Proposal and approval of a Water Security Policy.
272,• DLI3: Development of tools for improved knowledge on surface and groundwater quantity and quality.
273,• DLI4: Number of people in the rural sector with access to Safely Managed Drinking Water Services.
274,• DLI5: Approval of a Rural WSS Strategic Plan to 2030.
275,• DLI6: Implementation of pilots of Alternative Rural Wastewater Treatment Technologies.
276,• DLI7: Number of people at lower risks of flood due to new and/or rehabilitated works built by DOH.
277,• DLI8: Inclusion of NBS in the design of selected DOH projects.
278,• DLI9: Percentage of the number of MOP’s or other ministry’s investment projects that are included in the PERHCs.
279,PROGRAM IMPLEMENTATION A.
280,Institutional and Implementation Arrangements 34.
281,The Program will be implemented by the MOP and MMA.
282,"In Chile, the budget for water-related issues, is predominantly under the jurisdiction of the MOP."
283,"As described in paragraph 8, the MOP —through the DGA, DOH, and SSR— is responsible for WRM and for the provision of rural WSS, irrigation infrastructure, and flood protection."
284,"Additionally, the General Directorate of Public Works (Dirección General de Obras Públicas, DGOP) is tasked with facilitating back-office support for the planning, design, and supervision of public construction projects carried out by DOH, including rural water supply systems."
285,Figure 1 in Annex 4 shows MOP’s organizational structure.
286,  The World Bank Chile's Water Transition (P179117) 35.
287,"MMA experienced an institutional expansion through the 2022 Exempt Resolution No0665 that allowed for the creation of the MMA’s Office of Just Socioecological Transition (Oficina de Transición Socioecológica Justa, OTSJ), mapped under the Undersecretary of Environment, which acts as a policy coordinating entity for the implementation of the THJ program."
288,"Specifically, the OTSJ is responsible for elaborating and coordinating the design and implementation of the equitable socio-ecological transition strategy; designing methodological tools for the transition process; defining intersectoral sectoral strategies for the installation of equitable socio-ecological transition processes, and following up and reporting on territorial work, providing necessary support for the achievement of defined objectives."
289,"Figure 2 in Annex 4 provides an overview of MMA’s organizational structure, showing the OTSJ under the Undersecretary of Environment."
290,"Three agencies under the MOP (DGA, DOH, SSR) and the OTSJ in the MMA will be responsible for implementing the Program’s Results Areas."
291,"Focal points have been identified in each Result Area, as well as financial, procurement, social and environmental specialists (including occupational health and safety) for each Results Area to facilitate the cross-institutional coordination, especially for Results Areas 1 and 3 which require coordination between the MOP and MMA."
292,"In addition, the DGOP, under MOP, will provide additional administrative support to the Results Areas as needed."
293,"• Results Area 1: Implemented by DGA (MOP) and co-implemented by the OTSJ (MMA) • Results Area 2: Implemented by SSR (MOP) • Results Area 3: Implemented by DOH (MOP) and co-implemented by the OTSJ (MMA) • DGOP provides Financial Management and M&E support to Results Areas 1,2,3."
294,"Overall, the technical assessment concluded that the capacities within MOP and MMA were sufficient for program implementation (See Technical Assessment Report)34."
295,Most of the tasks included in the THJ program are a continuation of the existing work being performed by MOP.
296,"Chile's government agencies have demonstrated high performance, reasonable budget planning, and project execution competency."
297,"Expanded responsibilities for DGA, DOH, and MMA as described in paragraph 8 are being complemented by an increased staff number."
298,"In particular, expanded tasks under RA1 for DGA and MMA regarding the work on river basin governance have been matched by a suitable team of professionals."
299,Similarly expanded water resources oversight responsibilities for DGA have been coupled with budgetary and personnel increases.
300,"For RA2, the technical assessment concluded that the SSR will need to review the institutional models for the delivery of rural WSS services as current staffing plans will fall short of meeting program goals by 2027."
301,This activity has been included as part of the program.
302,"To meet program goals, the technical assessment concluded that inter-ministerial coordination will also be needed."
303,"To achieve this the MMA has created the new sectoral OTSJ, which is currently in the process of being staffed."
304,"A Program Coordination and Reporting Unit (PCRU), located in the DGOP and following the directives of the MOP Ministerial Cabinet, will facilitate administrative tasks and monitoring and evaluation."
305,"DGOP has a supervisory, auditing, and coordination role within the Ministry.35 The unit will coordinate between participating institutions under MOP and MMA, who will oversee the implementation of the Program."
306,"The key responsibilities of the PCRU include: (i) monitor progress towards meeting the Program objectives; (ii) prepare periodic monitoring reports on the progress of the different activities and contribution towards DLIs; (iii) inform both Ministries’ offices on progress in Program implementation; (iv) ensure that the different institutions (DGA, DOH, SSR) under MOP and the OTSJ under MMA submit periodic follow-up and evaluation reports, ensuring consolidation of reports where relevant per Results Area; (v) specify 34 Technical Assessment Report will be available on , in www.bancomundial.org/es/country/chile/publication/el-agua-en-chile-elemento-de-desarrollo-y- resiliencia."
307,35 Ministerio de Obras Públicas.
308,Decreto con Fuerza de Ley 850.
309,"  The World Bank Chile's Water Transition (P179117) the reasons for plan deviations, if any, and propose remedial actions; (vi) prepare periodic Program Reports for the Directorate for Budgeting (DIPRES) and for the Independent Verification Agent (IVA); (vii) prepare progress monitoring reports on compliance with the agreed actions in the Program Action Plan; (viii) consolidate financial statements of the Program; and (ix) prepare requests for disbursement of funds based on IVA reports."
310,"This unit will consist of a Coordinator, a Monitoring and Evaluation (M&E) Specialist, and a Fiduciary Specialist."
311,"Moreover, an Operations Manual is being prepared before Program effectiveness to ensure smooth and effective implementation."
312,"This manual covers a range of topics, including: (i) the activities and timetable of actions to be carried out under the Program, as well as excluded activities; (ii) the composition and responsibilities of the PCRU; (iii) the roles and responsibilities of all entities participating in the Program; (iv) the fiduciary, technical, and operational aspects as well as procedures for implementing the Program, including financial management and procurement procedures; (v) the DLIs for the Program; (vi) the verification protocols for the DLIs and DLRs (disbursement-linked results); (vii) the Anti-Corruption Guidelines (ACG); and, (viii) the Program Action Plan."
313,Results Monitoring and Evaluation 40.
314,The MOP will retain overall responsibility for M&E of Program results.
315,General Directorates within MOP are requested to provide annual reports on the progress to meet their objectives.
316,"To achieve this, each General Directorate has an M&E system to record the year-to-date progress."
317,The MOP is equipped with an M&E system for the tracking of the Ministry’s investments housed within the DGOP.
318,The MOP will use this system to track progress of works being implemented by DOH.
319,"To facilitate the validation of results, the PCRU will consolidate Program Monitoring Reports before the beginning of each verification period."
320,"The reports will summarize the progress in achieving results up to the specific verification date and will be submitted to the IVA as the basic document to work with before conducting the actual verification, as stated in the Verification Protocol instructions."
321,The MOP through DGOP is contracting an IVA to provide objective and impartial verification of the achievement of results and the disbursement of funds.
322,"MOP is seeking to contract a University as the IVA, as it can easily bring together a multidisciplinary team as needed, and multi-year contracting is possible under MOP’s regulations."
323,This is a legal covenant to be met 6 months after effectiveness.
324,"The IVA’s role is to assess and validate the progress and outcomes of the Program, ensuring that the results achieved by the Program meet the agreed-upon performance indicators and targets."
325,The IVA's reports will be instrumental in determining whether the GoC is eligible for disbursements under the PforR operation.
326,C. Disbursement Arrangements 42.
327,The IVA will be responsible for verifying the accuracy and quality of the results achieved under this program.
328,"The IVA will rely on its own specific Terms of Reference for this Program, which will be included in the Operations Manual."
329,"The IVA will periodically36 prepare a Results Verification Report based on the baseline and annual achieved results.37 This report will be shared with the PCRU and the World Bank, describing the allocated amounts, baselines agreed between the World Bank and the GoC, yearly targets, conditions of achievement, and payments for prior results."
330,The Results Verification Report will enable the determination of the amount of eligible disbursement to be made.
331,"If the World Bank finds that the disbursement request meets the terms of the loan, the corresponding funds will be disbursed to DIPRES, under the Ministry of Finance."
332,The World Bank will verify all prior results to ensure the accuracy and validity 36 Frequency to be defined in the Operations Manual as well as in the IVA’s Terms of Reference.
333,"37 According to World Bank policy, the Bank may agree to disburse up to 25 percent of the PforR Financing proceeds on account of the DLIs met by the Borrower between the date of the concept review and the date of the legal agreement for the PforR Financing (“prior results”)."
334,"Therefore, with in this PforR, the IVA will also consider results achieved from , until the Signature Date of the Loan Agreement that could be considered as prior results."
335,  The World Bank Chile's Water Transition (P179117) of the information presented and may request additional information to the IVA and government counterparts as needed.
336,D. Capacity Building 43.
337,"To contribute towards the success of the Program, the World Bank will provide complementary implementation support as well as technical assistance focused on the following areas: (i) support to the MMA and DGA for the improvement of the institutionality at the river basin level; (ii) support to the SSR throughout its implementation of Law N°20,998 for improved rural WSS services; (iii) support to the DOH as it introduces resilience by design approaches in irrigation works; and (iv) support to the DOH as it incorporates NBS in flood control works, among others."
338,More details about both levels of implementation support and capacity building can be found in the Technical Assessment Report.
339,ASSESSMENT SUMMARY A.
340,Technical (including program economic evaluation) Strategic Relevance and Technical Soundness of the Program 44.
341,"The Program structure is designed to close service gaps and to enhance climate resilience through addressing key challenges in WRM, rural WSS, flood and drought risk management."
342,• Key challenges in WRM in Chile involve institutional framework issues.
343,"These challenges include: improving coordination between over 40 water management institutions, enhancing DGA’s technical capacity, improving the river basin governance structure, and addressing insufficient water data, information, and planning instruments that limit effective management."
344,• Rural areas in Chile face significant challenges in accessing safely managed WSS services.
345,Access gaps exist particularly in semi-concentrated and dispersed areas.
346,"Sanitation services in rural areas are also lacking, posing health and environmental risks."
347,"While the SSR plans to continue implementing water supply investments, there are no plans for sanitation investments."
348,SSR’s new responsibility for sanitation projects poses challenges in implementation.
349,"• Chile is increasingly grappling with droughts and floods, and there is a need to improve irrigation and flood protection infrastructure to mitigate these challenges."
350,"At present, 72 percent of the country's territory is experiencing some level of drought; this impacts 38 percent of the population."
351,There has also been an increase in the number of flood victims since 2000; the latest catastrophic flooding took place in August 2023.
352,"Chile lacks a holistic, basin-focused or climate-resilient approach to water management."
353,"For example, there are gaps in irrigation infrastructure that require higher investment for expansion and comprehensive flood protection plans."
354,"However, current irrigation projects are typically demand-driven and neglect environmental and climate risks, making projects vulnerable to water shortages and water conflicts."
355,"Also, urban flood plans need better integration with river basin planning and more effective ways to consider climate change impacts."
356,Lengthy infrastructure projects (which can take 7-10 years from design to construction phase) can lead to outdated solutions.
357,"Despite the proven effectiveness of NBS, they are not consistently incorporated into flood protection designs due to resistance from traditional engineering approaches."
358,  The World Bank Chile's Water Transition (P179117) 46.
359,"To address these challenges, the three Program Results Areas aim to strike a balance between MOP's traditional functions and the introduction of innovative approaches."
360,"MOP has adopted a phased approach, starting with pilot projects and gradually incorporating new methodologies and perspectives."
361,"For instance, while DGA's role has always involved regulating and overseeing water resource allocation, they recognize that the changing climate requires a more integrated approach, emphasizing participatory governance at the basin level."
362,DGA is therefore strengthening its capacity to create river basin working groups.
363,"To advance in the sustainability of an improved river basin governance structure, DGA has received a budgetary allocation for the creation of the River Basin Technical Secretariat and has received additional funds from the Innovation Water Fund38 set up in 2022 to help river basin planning."
364,"Similarly, DOH, with its expertise in designing and constructing irrigation and flood infrastructure, acknowledges the need to incorporate an NBS perspective into their projects and has committed to incorporating at least two NBS in its portfolio within the duration of the Program."
365,Institutional capacity has been growing to accompany these new tasks.
366,"According to the Technical Assessment report, DGA, DOH, and SSR (under DOH) have the required capabilities for their tasks but may need to enhance expertise to introduce innovative approaches."
367,"• Following World Bank advice provided in 2014, the DGA has worked to strengthen its capacity by increasing its staff and pursuing capacity-building initiatives."
368,"These efforts include training professionals in various areas related to participatory river basin governance, legislative advice, coordination, technical support, and administrative activities in pilot river basins to form river basin working groups."
369,"• The DOH has established a strong institutional presence nationally and regionally, with dedicated divisions and sub-directorates for different aspects of water projects, including rural water supply, sanitation, drainage, and irrigation."
370,"i. SSR has actively been enhancing its capacity under Law 20,998, including the hiring of 104 new professionals (till October 2023) and planning to hire more region-based staff in the remainder of 2023 and 2024."
371,"Additionally, SRR has continued working on the rural drinking water supply portfolio, considering the changes in regulation."
372,"In the same line, as of October 2023, out of a total of 1,168 projects, 47 percent are in progress, 30 percent are in very advanced preparation stages, and 23 percent have been completed during the year."
373,"However, challenges arise in implementing rural sanitation projects, a new area for SSR, and sanitation projects have therefore been postponed until 2027 to allow for better planning and capacity building, supported by the World Bank."
374,"As of 2021, DOH employs 847 staff, with the majority being temporary or consultant staff."
375,This diverse workforce enables flexibility in staffing arrangements and supports DOH’s geographically distributed institutional structure.
376,"DOH has a history of efficient budget execution, highlighting its ability to manage resources effectively."
377,"Going forward, as DOH expands its focus on flood and landslide prevention and on NBS, they recognize the need to expand technical capacity, while improving coordination with other institutions like the SENAPRED and MMA."
378,Effective coordination between MOP and MMA is crucial to successfully implement these innovative agendas.
379,MMA’s environmental expertise is anticipated to play a significant role in the NBS efforts outlined in RA3.
380,The Program Action Plan (PAP) lists the creation of a Task Force with professionals from both MMA and MOP to facilitate the collaborative development of NBS guidelines.
381,"38 Fondo para la Investigación, Innovación y Educación en Recursos Hídricos   The World Bank Chile's Water Transition (P179117) 49."
382,"To implement these innovations, MOP and MMA have actively been learning from global experiences and international best practices."
383,"During Program preparation, the World Bank has been bringing experts and case studies from countries like Mexico, Peru, and Brazil to showcase how they have addressed river basin governance matters."
384,"Additionally, a study tour to the Netherlands on NBS was organized for MOP and MMA staff, aiming to stimulate discussions on the practical steps needed to integrate green solutions into traditional infrastructure."
385,This effort also allowed identifying and understanding the regulatory gaps that may hinder the smooth integration of these approaches.
386,"The World Bank is committed to continue supporting the GoC as it explores innovative approaches to enhance water security, facilitating global expertise."
387,The Technical Risk assessment is categorized as moderate.
388,"The Program builds on the successful execution of activities by the main implementing agency, MOP, reflecting its successful budget execution track record."
389,"Emerging risks result from new tasks such as the improvement of a river basin governance structure, the expansion on the investment portfolio of rural WSS, and the inclusion of NBS as part of MOP’s interventions."
390,To minimize these implementation risks key measures have been included as part of the Program Action Plan.
391,"These include: (i) the development of an outreach and communication plan explaining IWRM and river basin governance, benefits and functions; (ii) the development of an advocacy strategy for the passing of a bill to improve the governance structure for IWRM at basin level, as a proposal to modify existing legislation or to issue a new law; (iii) an action plan to improve rural WSS delivery within the context of Law N°20,998; and (iv) the creation of inter-ministerial working group for NBS, among others."
392,Expenditure Framework 51.
393,"The below Expenditure Framework shows the total Program (PforR) cost (US$ 1,546.04 million), which is the total government program cost (US$ 1,872.3 million as described earlier) excluding (i) large infrastructure works with significant environmental and social risks, (ii) investments in new rural water supply, sanitation, flood control and irrigation infrastructure on international waterways, and (iii) expansion or alterations with adverse impact on the quantity or quality of water flows to riparian countries."
394,Table 3.
395,World Bank supported Program Expenditure Framework Ti tle of the s ub- progra m Expendi ture Function Ins titution Subtitle 2023 2024 2025 2026 2027 RA1: Strengthening Pers onnel DGA/MMA (*) 21 1.2 3.0 3.0 3.0 3.0 institutional capacity DGA/MMA Cons ul tant s ervi ces /cons ul tanci es (*) 22.11 1.5 6.9 4.0 1.9 1.4 for integrated water Opera tiona l expens es DGA/MMA (*) 22 3.4 7.3 7.3 7.3 3.2 resources management at the CAPEX Equi pment DGA 29 3.3 6.7 9.0 7.5 3.6 national and basin non cons ul ting a ctivi ties DGA 22 1.4 0.8 0.2 0.2 0.0 levels.
396,"sub-total 10.8 24.7 23.5 19.9 11.2 Pers onnel SSR 21 16.5 16.5 16.6 16.6 16.5 RA2: Enhancing the sustainability of rural Opera tiona l expens es SSR 22 2.4 2.4 2.4 2.4 2.4 water supply and CAPEX i nves tments SSR 31 224.4 224.4 224.4 224.4 224.4 sanitation service CAPEX equi pment SSR 29 4.7 4.7 4.7 4.7 4.7 providers, while IT s ervi ces SSR 22.11 0.0 0.1 0.1 0.0 0.0 continuing to close IT progra m expens es SSR 29.07 0.0 0.0 0.3 0.4 0.0 access gaps."
397,sub-total 248.1 248.2 248.4 248.4 248.0 Pers onnel DOH/MMA (*) 21 0.5 0.7 0.6 0.4 0.4 RA3: Building climate resilience through CAPEX i nves tments DOH 31 36.3 49.9 38.5 28.6 25.7/23.1 the development of Cons ul tant s ervi ces /cons ul tanci es DOH/MMA (*) 22.11 6.0 8.8 8.5 6.8 5.8 green and gray Opera tiona l expens es MMA 22 0.0 0.0 0.0 0.0 0.0 solutions.
398,"sub-total 42.7 59.4 47.6 35.8 29.3 Total USD 1,546.04 301.57 332.26 319.56 304.16 288.50 (*) See Technical Assessment for a detailed breakdown of the expenses per institution."
399,  The World Bank Chile's Water Transition (P179117) Economic justification of the Program 52.
400,"The economic analysis of the Project reviewed the potential costs and benefits of the government’s US$ 1,872.3 million THJ program."
401,"Overall, it shows a positive present value result of US$ 10,340 million along with a benefit- cost ratio of 3.15 and an IRR of 37 percent."
402,Strengthened water resource management through the program will not only yield benefits in different regions across Chile but will also bring benefits to different sectors by increased water security in targeted areas and higher climate change resilience.
403,The analysis identified potential outcomes concerning management aspects; benefits derived from having better water infrastructure; reduction of social costs due to greater water security; environmental benefits regarding conservation efforts and avoided costs of the impacts of extreme weather conditions.
404,The initial identification and evaluation of these benefits was carried out for a horizon of 30 years (2023-2053).
405,"For the calculation of costs and benefits, the analysis used the social discount rate of 6 percent, set by the MDSF (2022)."
406,"The cost of the program (2022-2027) will be US$ 1,872.3 million."
407,"The investment will be divided into the three areas of results, of which US$ 90.3 million will be allocated to national and local institutional WRM reforms and improving the information system, US$ 1,300 million will be allocated to increase safely managed WSS in rural areas, and US$ 482 million will be allocated to the improvement of climate resilience through the development of gray and green infrastructure, including irrigation and storage projects, urban flooding, runoff and sediment management, and green solutions (including NBS)."
408,Program costs are within an acceptable range when compared to similar programs.
409,The costs of expanding water-relate infrastructure under RA1 align with the costs of similar efforts; hydrometeorological stations costs in Chile are comparable to other countries like Mexico and Peru.
410,"Regarding rural WSS activities under RA2, Chile's costs for rural drinking water projects, on a per capita basis, are relatively low when compared to similar projects in Peru."
411,"However, it is important to note that these comparisons only serve as references, as design parameters for the projects may vary."
412,"Similarly, project costs for urban flooding control and irrigation are reasonable when compared to international cases and previous projects in Chile."
413,"For example, the urban flooding control project costs US$ 13 million and benefits significantly more people than a similar project in Peru."
414,"Similarly, irrigation project costs are lower than those of comparable projects in Bolivia and Ecuador."
415,"As detailed in the next table, benefits occurring from the program have been distributed in two main categories: (i) benefits resulting from improved institutional capacity for water resources management and infrastructure planning; and (ii) benefits from the expansion and rehabilitation of water infrastructure."
416,  The World Bank Chile's Water Transition (P179117) Table 4.
417,"Evaluation of Project Impacts Type of Benefit Impacts Project Benefits (2023-2053) – Qualitative and Quantitative Improved • Improved efficiency on • In 2021, DIPRES carried out an assessment of the potential savings that would result institutional public expending as a in better institutional coordination for all of Chile’s public spending framework."
418,It capacity for water result of better concluded that a 17.3 percent savings would be possible.
419,"Given its comparative resources institutional coordination weight in the overall public spending this would represent a total of US$ 1,007 management and and better investment million for DOH and DGA for the 2023-2053 period."
420,"infrastructure planning • The benefits of improved water information include: better decision on hydraulic planning • Improved water resources infrastructure planning, avoided groundwater overexploitation and improvement in allocation and investment the water rights usage."
421,"For example, a new information system could help in the planning as a result of process of collection of no-use of water right fees."
422,Only the benefits from these no- better water information.
423,"use water right fees could, by themselves, could cover for the program’s costs."
424,• Reduced conflicts over • The benefits resulting from reduced conflicts have been estimated as the time spent water at basin level.
425,by DGA on conflict resolution.
426,According to Rivera et al.
427,"2020, conflicts arise, among • Indirect environmental others, due to the formalization of water rights."
428,This is the main task of DGA’s legal benefits from better water department.
429,According to DGA a better information system could result in a 10 quality monitoring and percent time savings.
430,This is estimated as US$ 1.34 million for 2023-2053. control.
431,• A recent evaluation of the willingness to pay for the provision of ecosystem services in the Aconcagua basin yielded a reference value of US$ 120.6/year/household.
432,This will represent a US$ 3.5 million/year for our program.
433,"Expansion and • Jobs creation as part of • According to ECLAC, in order to universalize access to drinking water and sanitation rehabilitation of hydraulic infrastructure services before 2030, Chile must invest US$ 7,277 million in the expansion of these water development systems, and US$ 10,266 million in the rehabilitation of existing infrastructure infrastructure • Reduced cost of (ECLAC, 2023)."
434,"ECLAC estimates that this would represent an increase in jobs of 0.65 alternative service percent, which translates in the creation of 224,6 jobs per US$ million."
435,"This would provision for the GoC represent 290,000 new jobs for the current investment in WSS as part of the • Avoided social costs from program."
436,pilot WWT projects.
437,"• As there is currently no data on the willingness to pay for WSS services in rural areas, • Benefits from a reduce the benefits from the expansion of WSS services have been compared against the frequency of flood impacts costs of service provision from alternative means which are currently estimated at US$ 26.6 million per year."
438,"• Additionally, the development of wastewater treatment systems will result in a total avoided social cost of US$ 33 million."
439,"• Based on past data on flood impacts from 1965 to 2019, the avoid costs from better flood protection are estimated in US$ 459,584 million for 2023-2053."
440,"The economic analysis considered the project’s potential outcomes in relation to aspects of management, water infrastructure, reduction of social costs due to greater water security, and environmental benefits in the scope of climate change resilience."
441,"As for the negative impacts, in addition to the costs of program implementation or investment, the analysis included potential social and environmental risks due to the variety of civil works to be implemented by the MOP."
442,"However, these risks will be mitigated accordingly with measures in line with national regulation and commonly applied by the MOP."
443,Paris Alignment 57.
444,"The proposed Program is aligned with the goals of the Paris Agreement, addressing both adaptation and mitigation objectives."
445,Assessment and reduction of adaptation risks.
446,"The main climate and disaster risks likely to affect project investments are floods, droughts, and water scarcity."
447,The Program aligns with Chile’s NDC which stipulates that water management and sanitation is one of the two urgent areas to build resilience.
448,"The Program addresses these risks by increasing climate resilience through: (i) strengthening the institutional capacity for integrated water resource   The World Bank Chile's Water Transition (P179117) management by including enhanced water infrastructure for water monitoring, supporting water solutions for flood and drought risks as well as preparing strategic plans for river basin management; (ii) enhancing the sustainability of rural WSS service providers through institutional strengthening and investments in WSS systems, and (iii) enhancing climate resilience through the incorporation of NBS into hydraulic infrastructure and developing basin-scale urban flooding master plans to identify flood-prone areas and design systems to accommodate changing climate conditions."
449,Assessment and reduction of mitigation risks.
450,"Chile’s 2020 NDC aims for GHG neutrality by 2050, emphasizing a just transition to a climate-resilient economy."
451,"The Program complements Chile’s mitigation commitment to reduce greenhouse gas (GHG) emissions to 95 MtCO2eq by 2030, as it focuses on improving water monitoring networks, modernizing systems, and enhancing water allocation efficiency, which can contribute to GHG reduction."
452,The installation of sensors and monitoring equipment to automate data capture and storage will improve water management thus increasing water-use efficiency and contributing to GHG emission reduction.
453,The planned wastewater treatment pilots will utilize technologies with lower emission rates.
454,"Also, NBS will be integrated into infrastructure projects, thus leading to reduced emissions from water-related activities in the long-run."
455,Fiduciary 60.
456,"The procurement and financial management systems’ capacity and performance, with the implementation of the proposed mitigating measures and agreed actions to strengthen the systems (see PAP), are adequate to provide reasonable assurance that Program funds will be used for the intended purposes, with due attention to the principles of economy, efficiency, effectiveness, transparency, and accountability."
457,The Borrower confirmed that it does not foresee any high-value contract under this Program.
458,"The Program is not expected to finance any contract at or above the Operations Procurement Review Committee thresholds considering the activities under Low risk, established at a minimum of (i): US$ 200 million for works; (ii) US$ 125 million for goods, information technology and non-consulting services; and (iii) US$ 40 million for consulting services."
459,"MOP and MMA will immediately inform the World Bank (through e-mail and official letter) of any complaint, claim or allegation related to fraud and corruption which they either receive or of which they become aware."
460,"In addition, every semester (together with the Program Monitoring Reports) a report will be prepared containing all alleged cases, with an updated status of the respective actions taken."
461,"MOP and/or MMA will immediately provide all records, documentation, and information that the World Bank may request with respect to such issues."
462,"If the World Bank decides to conduct its own investigation, the World Bank may request the GoC and/or MOP and/or MMA to exercise its/their legal rights and remedies (under the relevant contract/s) to obtain all information, records, and documentation that the World Bank may request, and provide these to the World Bank."
463,This process does not limit the rights of the World Bank to also make direct requests for information from individuals or contractors who are recipients of World Bank financing.
464,"In line with the obligations arising under the Anticorruption Guidelines, the GoC and the MOP and/or MMA should ensure that individuals or firms who are recipients of WB financing are aware that the WB may decide to exercise this option."
465,"If the World Bank determines that it has not been able to receive the documentation, records, or information as requested directly and/or through MOP and/or MMA, the World Bank may declare the relevant expenditure ineligible for World Bank financing under the Program."
466,"Furthermore, should the World Bank conclude that a sanctionable offense has occurred, it may decide to pursue sanctions against the individual or firm in line with World Bank procedures."
467,  The World Bank Chile's Water Transition (P179117) 64.
468,"The institutional arrangements of the Program are clearly defined; the Program will be implemented by the MOP (through DGA, DOH and SSR) and MMA."
469,These institutions are expected to hold the fiduciary responsibilities to manage the Program.
470,"Based on the Program boundaries and the expenditure framework, a fiduciary assessment has been carried out to evaluate that its procurement and financial management arrangements for the Program – in terms of planning and budgeting, control systems, accounting and reporting, treasury and flow of funds, procurement processes, contracts administration, fraud and corruption systems and auditing – provide reasonable assurance that the Program will achieve the intended results through its procurement and financial processes and procedures."
471,The integrated fiduciary risk is considered Moderate.
472,Complementary information is included in the Fiduciary Systems Assessment.
473,C. Environmental and Social 65.
474,"The Program’s Environmental and Social Systems Assessment (ESSA) was prepared by the World Bank to meet the requirements of PforR Financing Policy and Directive, following Bank Guidance (OPS5.04-GUID.118)."
475,"The draft ESSA Report was informed by ongoing consultations with the Bank's Program counterparts in MOP and MMA, and underwent formal consultation in early September 2023, through virtual focus groups involving diverse Chilean stakeholders, which enhanced and validated the report's content."
476,The ESSA found that no significant adverse environmental and social (E&S) impacts are expected as a result of the proposed activities under the Program.
477,The ESSA defines the typology of activities that cannot be included in the Program due to their expected high adverse impacts on the environment and/or affected people.
478,"The main positive environmental effects are related to a more efficient use and management of water resources, including the reduction of water losses due to aging rural drinking water infrastructure."
479,"The Program would likely have overall positive social impacts mainly on the quality of lives and health of rural communities through the expansion of safely managed water and sanitation services; the health, safety, and economic activities of urban and rural population through the reduction of the risks of urban flooding and drought; better governance of water resources, strengthening transparency and improving stakeholder engagement; and the reduction of conflicts over water through the implementation of a participatory IWRM approach in selected basins."
480,The overall environmental risks and potential impacts of the Program are considered Substantial.
481,This classification responds to the wide range of potential environmental risks and adverse impacts expected from the variety of civil works to be implemented by the MOP.
482,The scale of the expected infrastructure will be small to medium and located in both rural and urban areas.
483,"Key environmental risks and impacts that could arise from the construction and operation phases of this infrastructure, include: (i) temporary impacts on water and air quality mainly during the construction phase; (ii) contamination risk associated with generation and inadequate management and disposal of non-hazardous and hazardous solid waste (including electronic waste management), generation and discharge of wastewater from civil works, and sludge generation and disposal from water and sanitation works; (iii) health and safety risks to the project workforce and local communities, including from exposure to hazardous materials/wastes; (iv) impacts on natural habitats; and (v) risks and impacts that could derive from inadequate environmental management during the operation and maintenance of the infrastructures."
484,These risks and impacts are envisaged to be mainly temporary and site-specific and will be mitigated with measures required by national regulations and commonly applied by the MOP.
485,The overall social risks and potential impacts of the Program are considered Substantial.
486,"Potential social risks and adverse impacts include the following: (i) labor management–related issues, considering management of impacts and community risks associated with labor influx, including sexual exploitation and abuse, and sexual harassment   The World Bank Chile's Water Transition (P179117) (SEA/SH); (ii) temporary disruption of public services (electricity, water, etc.)"
487,"that should be relocated due to civil works; (iii) land acquisition leading to temporary or permanent physical and/or economic displacement, or restrictions on land or resource use having adverse impacts on local livelihoods; (iv) impacts on economic activities due to the civil works; (v) possible increases in social conflict due to changes in the management of water resources supported by the Program; and (vi) risk of exclusion of vulnerable population in rural areas who, due to their low incomes, may not be able to afford some of the new water services or tariffs."
488,"To mitigate these risks, systematic screening for social risks and impacts will be conducted, and appropriate participatory and consultation processes with all the stakeholders will be implemented."
489,"These processes will not only encompass the civil works but also the development of plans, policies, and water management governance at the river basin level."
490,The ESSA concluded that the national and sectorial E&S existing systems are adequate to effectively manage the E&S risks and impacts of the Program.
491,The E&S systems applicable to the Program are reasonably aligned with the core principles and key planning elements set out in the PforR Financing Policy and Directive.
492,"Regarding the management of risks and impacts expected from civil works, Chile has a robust Environmental Impact Assessment System (Sistema de Evaluación de Impacto Ambiental, SEIA), which is administered by the Environmental Assessment Service (Servicio de Evaluación Ambiental, SEA) and includes the evaluation of both E&S risk and impacts."
493,"The periodic supervision of the E&S requirements and commitments listed in the environmental licenses is widely regulated and carried out by the Superintendency of the Environment (Superintendencia del Medio Ambiente, SMA)."
494,Both the SEA and the SMA have sufficient institutional capacity to effectively implement the aforementioned processes.
495,Some small-scale projects/infrastructure considered in the Program do not require the development of E&S instruments under Chile’s SEIA.
496,"However, following MOP’s standard procedures, appropriate E&S instruments are also required and developed for these interventions."
497,"In all cases, the MOP includes the corresponding E&S specifications and requirements in the bidding documents for construction, and the periodic supervision of the E&S requirements and commitments is carried out by designated specialists (Inspectores Fiscales) from each implementing agency within MOP."
498,"The MOP has sufficient institutional capacity to ensure compliance with Chile’s existing E&S regulatory framework, with E&S teams embedded in the agencies involved in the Program."
499,The ESSA identifies actions and recommendations to support the effective management of E&S risks during Program implementation.
500,"These include: (i) an exclusion list, with activities that cannot be included in the Program due to their expected significant E&S risks; (ii) criteria for assessing compliance with E&S requirements when evaluating activities considered for payments based on prior results; (iii) recommendations to strengthen the capacity in E&S matters of the SSR; etc."
501,The PAP presented in Annex 2 includes E&S actions.
502,The ESSA also identified processes to be included in the Operations Manual.
503,Grievance Redress.
504,"Communities and individuals who believe that they are adversely affected as a result of a Bank supported PforR operation, as defined by the applicable policy and procedures, may submit complaints to the existing program grievance mechanism or the Bank’s Grievance Redress Service (GRS)."
505,The GRS ensures that complaints received are promptly reviewed in order to address pertinent concerns.
506,Project affected communities and individuals may submit their complaint to the Bank’s independent Accountability Mechanism (AM).
507,"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."
508,"Complaints may be submitted at any time after concerns have been brought directly to the Bank's attention, and Bank Management has been given an opportunity to respond."
509,"For information on how to submit complaints to the Bank’s Grievance Redress Service (GRS), visit "
510,"For information on how to submit complaints to the Bank’s Accountability Mechanism, visit "
511,  The World Bank Chile's Water Transition (P179117) D. Climate Change 72.
512,Climate change is posing additional threats to the GoC’s capacity to manage water resources and increase water security.
513,"Chile ranked 29th out of 181 countries in the 2020 ND-GAIN Index,39 with a 22nd place in vulnerability and 36th in readiness to improve their resilience.40 Droughts, floods, and landslides are significantly impacting Chile’s current WRM system, exposing strains in planning and highlighting limitations due to a lack of resilience."
514,"At the river basin level, poor planning hinders the development of sustainable water services, impacting their reliability and the integration of adaptation strategies in different investment projects."
515,"Moreover, current urban flooding master plans are often disconnected from broader river-basin planning."
516,Chile requires strengthening of its basic water resources management tools to address climate change impacts.
517,"This includes integrated water resource planning, long-term vision, and effective river basin-level decision-making to strengthen risk management practices."
518,"Climate resilience can also be enhanced by the expansion of monitoring networks, the improvement of data collection systems, and the integration of NBS."
519,"For instance, hydrological monitoring networks can capture important information about basins and enhance understanding of water quantity and quality for continuous service provision during emergencies."
520,"The construction of green and gray solutions such as drainage systems, flood plain restoration, riverbank protection, and reforestation can reduce climate-related risks and contribute to the sector’s adaptability."
521,39 University of Notre Dame (2020).
522,"Notre Dame Global Adaptation Initiative:  40 The more vulnerable a country is the lower their score, while the more ready a country is to improve its resilience the higher it will be."
523,  The World Bank Chile's Water Transition (P179117) Table 5.
524,"Climate Adaptation and Mitigation Measures in the Program Share of DLI / DLI overall Description financing DLI1 (US$ 20 million): Six river basin working groups will be created to start implementing integrated water resources Creation of river basin management to boost climate resilience at the river basin level, convening key representatives from working groups in the public sector, private sector, civil society–- including academia, and they will collaborate towards 8% selected basins."
525,achieving water security (DLI1.1).
526,"Each representative will bring in different perspectives, which will contribute to the development PERHCs, taking into consideration climate-related risks."
527,"DLI2 (US$ 20 million): This DLI incentivizes the Government to elaborate a national Policy on Water Security, describing Proposal and approval of the main issues and their socio-economic impacts."
528,This proposed policy will establish sustainable a Water Security Policy.
529,"8% water resource allocation practices and promote proactive flood and drought management strategies to better inform PERHCs, and/or PMCauces, and/or PMALLs."
530,"DLI3 (US$ 20 million): This DLI includes the installation of sensors and equipment to automate data capture and storage Development of tools for for fluviometric and meteorological stations (DLI3.1), the construction of new instrumented wells to improved knowledge on transmit data online and measure groundwater levels (DLI3.2), and the construction of a water surface and groundwater quality analysis laboratory, and installation of its technical equipment (DLI3.3)."
531,This will allow better 8% quantity and quality.
532,"water quality and quantity analysis for both surface water and groundwater, strengthening the sector’s monitoring capacity and preparedness for future extreme weather events, especially floods, droughts, and water scarcity."
533,"DLI4 (US$ 45 million): This DLI tracks the number of people in rural areas with access to safely managed drinking water Number of people in the services, as defined by SDG 6.1 indicator guidelines."
534,"The guidelines look at three important factors: rural sector with access to (i) whether people have access to improved water sources on their premises, (ii) whether there is Safely Managed Drinking 18% sufficient water available when they need it, and (iii) whether the water is free from contamination."
535,Water Services.
536,"Ensuring continuous safe water access will help rural communities adapt to the impacts of climate change, boost positive health outcomes, and increase resilience to future extreme weather events."
537,"DLI5 (US$ 25 million) This DLI will measure the approval of a Strategic Rural WSS Plan to 2030 to strengthen the SSR’s Approval of a Rural WSS capacity to plan for sustainable and increased access to rural WSS services, while preserving and Strategic Plan to 2030. maintaining quality services in areas where access already exists."
538,"The plan will guide the sector in 10% closing the infrastructure gap in rural drinking water and sanitation, by incorporating measures for resilience against floods and droughts."
539,"DLI6 (US$ 15 million): Implementation of pilots This DLI includes the identification of three locations that require expanded, rehabilitated, or of Alternative Rural improved wastewater treatment solutions."
540,The selected wastewater treatment solutions will differ 6% Wastewater Treatment from each other and may include NBS while also being energy-efficient.
541,"DLI7 (US$ 40 million): This DLI measures the reduced risks of flooding resulting in positive impacts on people's health, Number of people at safety, and economic activities."
542,"It focuses on the construction of green and gray solutions, such as lower risks of flood due to 16% drainage systems, flood plain restoration, riverbank protection, dikes, and reforestation."
543,This will new and/or rehabilitated help institutions in the sector to track the number of people benefitting from flood protection (under works built by DOH.
544,"MOP’s responsibility), allowing communities adapt to the impacts of climate change."
545,DLI8 (US$ 45 million): This DLI is an incentive for DOH to integrate NBS into its infrastructure projects.
546,"MMA and MOP will Inclusion of NBS in the identify current regulatory gaps (DLI8.1) and develop NBS guidelines to incorporate NBS into design of selected DOH infrastructure projects (DLI8.2) encouraging PERHCs and/or PMCauces, and/or PMALLs."
547,This will 18% projects.
548,"contribute to adaptation strategies as the guidelines will outline the best tools available to respond to climate-related risks and enhance the incorporation of NBS, ensuring PERHCs are integrated into future DOH investment projects."
549,"DLI9 (US$ 20 million): This DLI aims to ensure that hydraulic investments are made in a strategic and coordinated manner, Percentage of the number considering the needs and priorities of all stakeholders in the river basin."
550,"This will support climate of MOP’s or other adaptation strategies by providing funding to infrastructure investments such as reservoirs, water 8% storage facilities, and irrigation canals."
551,ministry’s investment projects that are included in the PERHCs.
552,  The World Bank Chile's Water Transition (P179117) V. RISK 74.
553,The overall risk rating for the Program is Substantial.
554,Sector Strategies and Policies risks are assessed as Substantial.
555,The improvement of the governance structure for IWRM at basin level will require changes in the existing legal framework.
556,This could translate into the enactment of a legal framework by Congress—either as a proposal to modify existing legislation or to issue a new law.
557,Its approval will require consensus building on Chile’s ambitions and objectives on IWRM.
558,"To achieve this consensus, particularly among large water users, a cautious communication strategy will be crucial to ensure dissemination of information and prevent mistrust among existing water users."
559,"To mitigate this risk, the GoC's strategy relies on the paced approach working first with river basin working groups at basin level."
560,"The GoC will develop a communications strategy with the support of the World Bank to convey the learning collected through the river basin working groups and benefits of the river-basin approach with all users, especially addressing concerned water users, while also bringing in international learning."
561,Institutional Capacity for Implementation and Sustainability risks are assessed as Substantial.
562,"Several areas of focus within the GoC’s initiatives, such as NBS, rural WSS, and river basin management, require increased technical capacity and staffing from the GoC."
563,"As described in the Technical Assessment, government institutions have proactively established comprehensive recruitment plans for each of the RAs to include new staff with technical expertise matching these new requirements."
564,"In the case of rural water supply, the GoC is working to update and enhance its current delivery model."
565,This has been included as part of the PAP.
566,"While the PforR will mitigate this risk through knowledge sharing and global expertise to inform the government program, the GoC will continue to assess institutional capacity and collaborate with the World Bank to address emerging needs, ensuring implementation preparedness as the program advances."
567,Environment and Social risks are assessed as Substantial.
568,As detailed in section IV.
569,"C, this classification responds both to the wide range of potential E&S risks and adverse impacts from the variety of civil works to be implemented under the Program, and to the diverse activities supported by the Program that imply changes in the current management of water resources and could increase the social conflict around this issue."
570,"The draft ESSA concluded that the national and sectorial E&S existing systems are adequate to effectively manage the E&S risks and impacts of the Program, and that the MOP has sufficient institutional capacity to ensure compliance with Chile’s existing E&S regulatory framework."
571,The expected E&S risks and impacts of the civil works will be adequately managed applying the E&S instruments required under the Chile’s SEIA and those provided for in MOP procedures.
572,"Nevertheless, the ESSA identifies specific actions and recommendations to further support the effective management of E&S risks during Program implementation, which are reflected in the PAP and will be detailed in the Operations Manual."
573,Stakeholder risks are assessed as Substantial.
574,Consensus around the institutional setup that will improve water resources management at basin level among stakeholders requires consensus among stakeholders.
575,"To address this, the GoC is creating river basin working groups to demonstrate the benefits of an IWRM approach, especially within today’s changing climate and water scarcity."
576,"The GoC will collaborate closely with the World Bank to develop a Stakeholder Outreach Plan, addressing user concerns, clarifying the river basin framework benefits, and promoting participatory water management across government, private sector, civil society, and indigenous communities."
577,  The World Bank Chile's Water Transition(P179117) ANNEX 1.
578,RESULTS FRAMEWORK MATRIX @#&OPS~Doctype~OPS^dynamics@padpfrannexpolicyandresult#doctemplate Program Development Objective(s) To strengthen the Borrower's capacity for water resource management and water-related services.
579,"PDO Indicators by Outcomes Baseline Closing Period Strengthen the Borrower’s capacity for water resource management Improve the GoC’s WRM planning capacity at national level (Text) Dec/2022 Dec/2028 - Enhanced GoC's capacity to plan for integrated and sustainable WRM Strengthen participatory water governance institutions in selected basins (Number) Dec/2022 Dec/2028 0 6 Strengthen the Borrower’s capacity for water-related services Improve the GoC’s WSS planning capacity at national level (Text) Dec/2022 Dec/2028 - Enhanced GoC's capacity to plan for sustainable and increased access to rural WSS services Increase access to safely managed rural drinking water services (Number) Dec/2022 Dec/2028 0 100,000 Increase number of people at lower risk of climate change exacerbated floods (Number) Dec/2022 Dec/2028 0 1,100,000 Intermediate Indicators by Results Areas   The World Bank Chile's Water Transition(P179117) Baseline Closing Period Strengthening institutional capacity for IWRM at the national and basin levels Female personnel participation in jobs generated by public works contracts tendered by the MOP (Percentage) Dec/2022 Dec/2028 9.4 15 Gender Assessment of female participation in river basin working groups completed."
580,"(Yes/No) Dec/2022 Dec/2028 No Yes Enhancing the sustainability and resilience of rural WSS service providers, and closing access gaps Rural Water Supply and Sanitation Information system designed and approved by MOP (Yes/No) Dec/2022 Dec/2028 No Yes People provided with water of which 100% is safely managed (Number) Nov/2022 Nov/2028 0 100000 Disbursement Linked Indicators (DLI) Period Period Definition Period 1 Prior Results Period 2 Program period Baseline Period 1 Period 2 1 : Creation of river basin working groups in selected basins (Number ) 0 0 6 0.00 0.00 17,575,000.00 DLI allocation 17,575,000.00 As a % of Total DLI Allocation 4.5% ➢ 1.1 : DGA has confirmed the formalization of (6) River Basin Working Groups with at least three (3) non-governmental stakeholders members each (Number ) 0 0 6 0.00 0.00 10,000,000.00   The World Bank Chile's Water Transition(P179117) DLI allocation 10,000,000.00 As a % of Total DLI Allocation 2.56% ➢ 1.2 : A Decree regulating the elaboration, revision and update of the PERHCs, monitoring PERHCs’ implementation, and formaliz ing the participation of river basin stakeholders for river basin planning, has been issued and published in the Official Gazette (Yes/No ) No Yes No 0.00 3,787,500.00 0.00 DLI allocation 3,787,500.00 As a % of Total DLI Allocation 0.97% ➢ 1.3 : The Council of the Ministers for Sustainability and Climate-Change has approved the National Water Security Policy, including the objective, criteria, and scope to advance Water Security (Yes/No ) No No Yes 0.00 0.00 3,787,500.00 DLI allocation 3,787,500.00 As a % of Total DLI Allocation 0.97% 2 : Proposal and approval of a Water Security Policy (Yes/No ) No No Yes 0.00 0.00 20,000,000.00 DLI allocation 20,000,000.00 As a % of Total DLI Allocation 5.13% ➢ 2.1 : The THJ Committee has approved a proposal for a National Water Security Policy, describing objectives, criteria, and scope to advance Water Security (Yes/No ) No No Yes 0.00 0.00 5,000,000.00 DLI allocation 5,000,000.00 As a % of Total DLI Allocation 1.28% ➢ 2.2 : MOP and MMA have submitted the proposed National Water Security Policy, including the objective, criteria, and scope to advance Water Security, to public consultation through its publication on their respective websites (Yes/No ) No No Yes 0.00 0.00 10,000,000.00 DLI allocation 10,000,000.00 As a % of Total DLI Allocation 2.56% ➢ 2.3 : The Council of the Ministers for Sustainability and Climate Change has approved the National Water Security Policy, including objective, criteria, and scope to advance Water Security (Yes/No ) No No Yes 0.00 0.00 5,000,000.00 DLI allocation 5,000,000.00 As a % of Total DLI Allocation 1.28% 3 : Development of tools for improved knowledge on surface and groundwater quantity and quality (Number ) 0 5 226 0.00 555,556.00 19,444,444.00 DLI allocation 20,000,000.00 As a % of Total DLI Allocation 5.13%   The World Bank Chile's Water Transition(P179117) ➢ 3.1 : 140 fluviometric and meteorological monitoring stations have been modernized with automated data transmission (Number ) 0 0 140 0.00 0.00 5,000,000.00 DLI allocation 5,000,000.00 As a % of Total DLI Allocation 1.28% ➢ 3.2 : 90 new Instrumented Wells transmitting data online have been installed (Number ) 0 5 85 0.00 555,556.00 9,444,444.00 DLI allocation 10,000,000.00 As a % of Total DLI Allocation 2.56% ➢ 3.3 : A water quality laboratory has been constructed and equipped with technical equipment (Number ) 0 0 1 0.00 0.00 5,000,000.00 DLI allocation 5,000,000.00 As a % of Total DLI Allocation 1.28% 4 : Number of people in the rural sector with access to Safely Managed Drinking Water Services (Number ) 0 900 99,100 0.00 405,000.00 44,595,000.00 DLI allocation 45,000,000.00 As a % of Total DLI Allocation 11.53% 5 : Approval of a Rural Water Supply and Sanitation Strategic Plan to 2030 (Yes/No ) No No Yes 0.00 0.00 25,000,000.00 DLI allocation 25,000,000.00 As a % of Total DLI Allocation 6.41% ➢ 5.1 : SSR has approved a baseline on the situation of water supply and sanitation service delivery in rural areas (Yes/No ) No No Yes 0.00 0.00 5,000,000.00 DLI allocation 5,000,000.00 As a % of Total DLI Allocation 1.28% ➢ 5.2 : SSR has prepared a report consolidating the comments submitted by specialists from the rural water and sanitation sector on the Rural Water Supply and Sanitation Strategic Plan to 2030 (Yes/No ) No No Yes 0.00 0.00 10,000,000.00 DLI allocation 10,000,000.00 As a % of Total DLI Allocation 2.56% ➢ 5.3 : MOP has approved the Rural Water Supply and Sanitation Strategic Plan to 2030 (Yes/No ) No No Yes 0.00 0.00 10,000,000.00   The World Bank Chile's Water Transition(P179117) DLI allocation 10,000,000.00 As a % of Total DLI Allocation 2.56% 6 : Implementation of pilots of Alternative Rural Wastewater Treatment Technologies (Number ) 0 0 3 0.00 0.00 15,000,000.00 DLI allocation 15,000,000.00 As a % of Total DLI Allocation 3.84% ➢ 6.1 : SSR has identified the locations for the carrying out of three (3) pilot works of Alternative Rural Wastewater Treatment Technologies (Number ) 0 0 3 0.00 0.00 3,000,000.00 DLI allocation 3,000,000.00 As a % of Total DLI Allocation 0.77% ➢ 6.2 : SSR has approved the design of three (3) pilot Alternative Rural Wastewater Treatment Technologies, in accordance with the technical criteria established by MOP (Number ) 0 0 3 0.00 0.00 3,000,000.00 DLI allocation 3,000,000.00 As a % of Total DLI Allocation 0.77% ➢ 6.3 : SSR has finalized three (3) pilot of Alternative Rural Wastewater Treatment Technologies that provide a water treatment level meeting the design standards approved under DLR#6.2 (Number ) 0 0 3 0.00 0.00 9,000,000.00 DLI allocation 9,000,000.00 As a % of Total DLI Allocation 2.31% 7 : Number of people at lower risks of flood due to new and/or rehabilitated works built by DOH (Number ) 0 0 1,100,000 0.00 0.00 40,000,000.00 DLI allocation 40,000,000.00 As a % of Total DLI Allocation 10.25% 8 : Inclusion of NBS in the design of selected DOH projects."
581,"(Yes/No ) 0 No Yes 0.00 0.00 45,000,000.00 DLI allocation 45,000,000.00 As a % of Total DLI Allocation 11.53% ➢ 8.1 : THJ Committee has approved a report developed by MMA identifying the gaps for developing NBS (Yes/No ) No Yes No 0.00 5,000,000.00 0.00 DLI allocation 5,000,000.00 As a % of Total DLI Allocation 1.28% ➢ 8.2 : MMA and MOP have published in their respective websites NBS guidelines developed by a multidisciplinary and inter-ministerial task force including specialists of MOP, MMA, MINAGRI and MDSF (Yes/No )   The World Bank Chile's Water Transition(P179117) No No Yes 0.00 0.00 5,000,000.00 DLI allocation 5,000,000.00 As a % of Total DLI Allocation 1.28% ➢ 8.3 : MOP has included NBS into two (2) PERHCs and/or PMCauces and/or PMALLs in accordance with the NBS guidelines published under DLR#8.2 (Number ) 0 0 2 0.00 0.00 15,000,000.00 DLI allocation 15,000,000.00 As a % of Total DLI Allocation 3.84% ➢ 8.4 : DOH has included NBS in the design of two (2) projects in its portfolio in line with the NBS guidelines published under DLR#8.2 (Number ) 0 0 2 0.00 0.00 20,000,000.00 DLI allocation 20,000,000.00 As a % of Total DLI Allocation 5.13% 9 : Percentage of the number of MOP’s or other ministry’s investment projects that are included in the PERHCs (Percentage ) 0 0 20 0.00 0.00 20,000,000.00 DLI allocation 20,000,000.00 As a % of Total DLI Allocation 5.13%   The World Bank Chile's Water Transition (P179117) Monitoring & Evaluation Plan: PDO Indicators by PDO Outcomes Monitoring & Evaluation Plan: PDO Indicators Indicator Name Program Development Definition/Description Frequency Data Indicator Name Responsibility for Data Outcome Collection Outcome 1: Strengthen the Borrower’s capacity for water resources management PDO 1: Improve the GoC’s WRM Enhance GoC's capacity planning capacity at national level for effective water resource management THJ Report from THJ planning by Annual DGA (MOP) Committee committee strengthening data collection mechanisms and planning tools PDO 2: Strengthen participatory 6 river basin working water governance institutions in groups will be created Ministerial selected basins to start implementing Annual Ministerial Resolution DGA (MOP) Resolution IWRM at the river basin level Outcome 2: Strengthen the Borrower’s capacity for water related services PDO 3: Improve the GoC’s WSS Enhance the GoC's planning capacity at national capabilities in water level supply and sanitation planning, with a focus Annual SSR Report from SSR SSR (MOP) on closing access gaps and improving rural service delivery PDO 4: Increase access to safely Number of people in managed rural drinking water rural areas with access Reports requested services to safely managed water user Bi-annual from rural water user SSR (MOP) drinking water services, committees committees as defined by SDG 6.1 indicator guidelines PDO 5: Increase number of Number of people with Technical people at lower risk of climate improved flood Annual DOH characteristics of the DOH (MOP) change exacerbated floods protection risk flood protection works Monitoring & Evaluation Plan: Intermediate Results Indicators by Results Areas Monitoring & Evaluation Plan: Intermediate Results Indicators Data Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency source Collection Collection RA1: Strengthening institutional capacity for IWRM at the national and basin levels This indicator will Female personnel measure growth in Annual MOP Report from MOP MOP participation in jobs female representation generated by public works   The World Bank Chile's Water Transition (P179117) contracts tendered by the in MOP’s public works MOP (Percentage) contracts This indicator measures Gender Assessment of female female participation in participation in river basin Annual MOP Report from MOP MOP river basin working working groups completed groups RA2: Enhancing the sustainability and resilience of rural WSS service providers, and closing access gaps This indicator will Rural Water Supply and measure progress of Sanitation Information system the Rural WSS Annual MOP Report from MOP MOP designed and approved by MOP information system development   The World Bank Chile's Water Transition (P179117) Verification Protocol Table: Disbursement Linked Indicators 1 : Creation of river basin working groups in selected basins."
582,(Number) Formula DLI 1.1 + DLI 1.2 Six river basin working groups will be created to start implementing integrated water resources management at the river Description basin level.
583,Data source/ Agency DGA Verification Entity IVA Procedure See procedures for DLI 1.1 and DLI 1.2 1.1 : DGA has confirmed the formalization of (6) River Basin Working Groups with at least three (3) non-governmental stakeholders members each.
584,"(Number) The DGA issues an official letter to the members of the river basin working group confirming the participation of at Formula least 3 non-governmental stakeholders per basin = US$ 1,666,666."
585,Evidence of participation is attached as part of the letter.
586,"A minimum of 3 non-governmental stakeholders adhere to the voluntary commitment to work in a river basin working Description group, reflected in the DGA official letter."
587,Data source/ Agency DGA Verification Entity IVA IVA verifies the DGA official letter that confirms the composition of the members of each river basin working group and Procedure that there are at least 3 non-governmental stakeholders in each river basin.
588,"2 : A Decree regulating the elaboration, revision and update of the PERHCs, monitoring PERHCs’ implementation, and formalizing the participation of river basin stakeholders for river basin planning has been issued and published in the Official Gazette (Yes/No) MOP has approved through decree # 58 published on , a regulation to elaborate, revise, update the Formula PERHCs and monitor their implementation, formalizing the participation of river basin stakeholders = US$ 3,787,500 This regulation describes the roles and responsibilities of MOP, DGA and the basin stakeholders which are grouped and Description formalized as part of new local basin institution called Strategic River Basin Water Resources Table (Mesa Estratégica de Recursos Hídricos de la Cuenca)."
589,"Data source/ Agency MOP Verification Entity World Bank team Procedure World Bank verifies the content, composition and functions of the Strategic River Basin Water Resources Table."
590,"3 : SEGPRES has submitted to Congress a bill (signed by the Borrower’s President) to improve the governance structure for integra ted water resources management at basin level, as a proposal to modify existing legislation or to issue a new law (Yes/No) SEGPRES will submit to Congress a bill to improve the governance structure for integrated water resources management Formula at basin level = US$ 3,787,500 This bill will first be presented to SEGPRES by MOP, and SEGPRES will subsequently present this to Congress for its Description processing."
591,Data source/ Agency MOP Verification Entity IVA Procedure IVA verifies that SEGPRES submits the bill to Congress for its processing.
592,"2 : Proposal and approval of a Water Security Policy (Yes/No) Formula DLI 2.1 + DLI 2.2 + DLI 2.3 The National Water Security Policy will outline the main water security issues and their socio-economic impacts in the Description context of overall government priorities, laying out the strategies to address them and guide PERHCs and Flood Risk Management Plans."
593,"Data source/ Agency THJ Committee   The World Bank Chile's Water Transition (P179117) Verification Entity IVA Procedure See procedures for DLI 2.1, DLI 2.2 and DLI 2.3 2.1: The THJ Committee has approved a proposal of a National Water Security Policy, describing objectives, criteria, and scope to advance Water Security (Yes/No) Formula Proposed objective, criteria, and guidelines for a National Water Security Policy = US$ 5,000,000 The THJ Committee will approve a document describing the objective, criteria, and guidelines as a first step in the Description elaboration of a National Water Security Policy."
594,"Data Source/ Agency THJ Committee Verification Entity IVA Procedure IVA verifies that the document describing the objective, criteria, and guidelines is approved by the THJ Committee."
595,"2: MOP and MMA have submitted the proposed National Water Security Policy, including the objective, criteria, and scope to advance Water Security, to public consultation through its publication on their respective websites (Yes/No) Formula Public consultation of the proposed National Water Security Policy = US$10,000,000 A draft of the proposed National Water Security Policy will be submitted to public consultation through a publication on the MOP and MMA website."
596,"The proposal will describe the main water security issues and their socio-economic Description impacts in the context of the government's overall priorities, laying out the strategies to address them and guide PERHCs and Flood Risk Management Plans."
597,Data Source/ Agency THJ Committee Verification Entity IVA IVA verifies that the National Water Security Policy approved by the THJ Committee is published in each institional Procedure website as described under ‘Description’.
598,"3: The Council of the Ministers for Sustainability and Climate-Change has approved the National Water Security Policy, including the objective, criteria, and scope to advance Water Security (Yes/No) Approval of the National Water Security Policy through Resolution of the Council of Ministers for Sustainability and Climate Change describing the main water security issues and their socio-economic impacts in the context of the Formula government's overall priorities, laying out the strategies to address them and guide PERHCs and Flood Risk Management Plans = US$ 5,000,000 Once received the feedback from public consultation, the proposed National Water Security Policy will be updated and Description submitted to the Council of the Ministers for Sustainability and Climate Change for their approval."
599,Data Source/ Agency THJ Committee Verification Entity IVA IVA verifies that the final version of the National Water Security Policy is approved by the Council of the Ministers for Procedure Sustainability and Climate Change through Resolution.
600,"3 : Development of tools for improved knowledge on surface and groundwater quantity and quality (Number) Formula DLI 3.1 + DLI 3.2 + DLI 3.3 Improved knowledge on surface and groundwater quantity and quality will be measured through the automation of Description fluviometric and meteorological monitoring stations (DLI 3.1), the increase of instrumented wells (DLI 3.2) and the construction of a new water quality laboratory (DLI 3.3)."
601,"Data source/ Agency DGA Verification Entity IVA Procedure See proceedures for DLI 3.1, DLI 3.2, and DLI 3.3 3.1 : 140 fluviometric and meteorological monitoring stations modernized with automated data transmission (Number) Formula 1 monitoring station = US$35,714.29 This involves the installation of sensors and equipment to automate data capture and storage for 140 fluviometric and Description meteorological stations."
602,Data source/ Agency DGA Verification Entity IVA IVA will review the National Information System and verify historic data transmision from the automated monitoring Procedure stations.
603,"  The World Bank Chile's Water Transition (P179117) 3.2 : 90 new Instrumented Wells transmitting data online installed (Number) Formula 1 new instrumented well = US$111,111.11 Description This involves the construction of 90 new instrumented wells to transmit data online to measure groundwater levels."
604,Data source/ Agency DGA Verification Entity IVA Procedure IVA will review the National Information System and verify historic data transmision from the new wells 3.3 : A water quality laboratory constructed and with technical equipment installed.
605,"(Number) Formula 1 operational laboratory= US$ 5000,000 Description This involves the construction of a new water quality analysis laboratory and the installation of its technical equipment."
606,Data source/ Agency DGA Verification Entity IVA IVA carries out a field visit to the laboratory 6 months after the final reception of the final works and verifies the Procedure installation of technical equipment.
607,"4 : Number of people in the rural sector with access to Safely Managed Drinking Water Services (Number) Formula 1 person in the rural sector with access to safely managed drinking water services = US$ 450 This indicator measures the number of people in the rural sector that have gained access to safely managed drinking water services either through new or rehabilitated water systems, where safely managed drinking water refers to an Description improved water source that is accessible on premises, available when needed and free from fecal and priority chemical contamination (SDG 6.1.1; WHO/UNICEF)."
608,"(baseline: 0 / number of target beneficiaries: 100,000) Data source/ Agency SSR Verification Entity IVA SSR provides a list of systems completed to IVA for verification."
609,"From this list, IVA selects a random sample of households that is statistically representative, verifying whether this rural population receives safely managed drinking Procedure water services, as defined in SDG 6.1.1: (i) whether people have access to improved water sources in their facilities, (ii) whether enough water is available when they need it, and (iii) whether the water is free of contamination."
610,"5 : Approval of a Rural Water Supply and Sanitation Strategic Plan to 2030 (Yes/No) Formula DLI 5.1 + DLI 5.2 + DLI 5.3 This indicator measures the approval of a Strategic Rural WSS Plan to 2030 to strengthen the SSR's capacity to plan for sustainable and increased access to rural WSS services, while preserving and maintaining quality services in areas where Description access already exists."
611,"This indicator is measured through 3 progress indicators: the creation of a baseline on the situation of rural service providers, the sharing of the plan for feedback from key stakeholders and the approval of the plan by a ministerial resolution issued by MOP."
612,"Data source/ Agency SSR Verification Entity IVA Procedure See procedures of DLI 5.1, DLI 5.2, and DLI 5.3 5.1 : SSR has approved a baseline on the situation of water supply and sanitation service delivery in rural areas (Yes/No) Formula Yes = US$5,000,000 The SSR will approve a baseline of characterization and information on water and sanitation in rural areas, including the Description estimation of the service gap through the SSR resolution (DOH)."
613,Data source/ Agency SSR Verification Entity IVA Procedure IVA reviews the SSR approval resolution (DOH).
614,"2 : SSR has prepared a report consolidating the comments submitted by specialists from the rural water and sanitation sector on the Rural Water Supply and Sanitation Strategic Plan to 2030 (Yes/No) Formula Yes= US$10,000,000 Elaboration of a report that consolidates the comments sent by specialists in the sector to the draft of the Rural WSS Description Strategic Plan to 2030."
615,Data source/ Agency SSR Verification Entity IVA   The World Bank Chile's Water Transition (P179117) IVA reviews the report provided by SSR consolidating the comments received by sector specialists on the draft for the Procedure consideration of the Rural Water Supply and Sanitation Strategic Plan to 2030.
616,"3 : MOP has approved the Rural Water Supply and Sanitation Strategic Plan to 2030 (Yes/No) Formula Yes= US$ 10,000,000 Description This sub-indicator measures the approval of the Rural Water Supply and Sanitation Strategic Plan to 2030 by MOP."
617,"Data source/ Agency SSR Verification Entity IVA IVA reviews MOP’s approval of the Rural Water Supply and Sanitation Strategic Plan to 2030, through resolution of Procedure approval from DOH."
618,"6 : Implementation of pilots of Alternative Rural Wastewater Treatment Technologies (Number) Formula DLI 6.1 + DLI 6.2 + DLI 6.3 This indicator measures the selection, design, and operation of 3 pilots that test alternative rural wastewater Description treatment technologies."
619,"Data source/ Agency SSR Verification Entity IVA Procedure See procedures for DLI 6.1, DLI 6.2, and DLI 6.3 6.1: SSR has identified the locations for the carrying out of three (3) pilot works of Alternative Rural Wastewater Treatment Technologies (Number) Formula 1 pilot location selection = US$1,000,000 This sub-indicator confirms that the locations of pilot works of Alternative Rural Wastewater Treatment Technologies Description by SSR have been identified through an official letter (per pilot) from the SSR to the DGOP."
620,Data source/ Agency SSR Verification Entity IVA IVA verifies that an official letter from the SSR has been submitted to the DGOP with the identification of the pilot sites Procedure of Alternative Rural Wastewater Treatment Technologies.
621,"2: SSR has approved the design of three (3) pilot Alternative Rural Wastewater Treatment Technologies, in accordance with the technical criteria established by MOP (Number) Formula 1 pilot design = US$1,000,000 Official approval of the pilot design for Alternative Rural Wastewater Treatment Technologies to be developed by SSR, Description which encompasses water quality standards."
622,Data source/ Agency SSR Verification Entity IVA Procedure IVA verifies that the SSR has approved the design of the Alternative Rural Wastewater Treatment Technologies pilot.
623,"3: SSR has finalized three (3) pilot of Alternative Rural Wastewater Treatment Technologies that provide a water treatment level meeting the design standards approved under DLR#6.2 (Number) Formula 1 operational pilot = 3,000,000 Pilots of Alternative Rural Wastewater Treatment Technologies in operation complying with the water quality Description standards included in the design of pilots of Alternative Rural Wastewater Treatment Technologies approved in DLI 6.2."
624,Data source/ Agency SSR Verification Entity IVA IVA verifies that the pilots of Alternative Rural Wastewater Treatment Technologies comply with the water quality Procedure standards included in the design approved in DLI 6.2.
625,"7 : Number of people at lower risks of flood due to new and/or rehabilitated works built by DOH (Number) Formula 1 person = US$ 36.36 Currently, there are 1,100,000 people living in flood risk areas."
626,"This indicator measures the population identified in the Description design stage, according to the Initiative Investment (IDI) sheet, with a reduced risk of flooding due to the protection provided by projects built by DOH."
627,Responsibility for flood protection lies within the DOH (MOP).
628,Data source/ Agency DOH Verification Entity IVA   The World Bank Chile's Water Transition (P179117) IVA verifies the technical specifications of the projects built to estimate the flood protection area based on the design Procedure return period.
629,"Based on this area, it estimates the population with the lowest risk resulting from the works."
630,"This number is compared with the people identified in the design stage, according to the IDI sheet."
631,"8 : Inclusion of NBS in the design of selected DOH projects (Yes/No) Formula DLI 8.1 + DLI 8.2 + DLI 8.3 Description Incentive for DOH to integrate NBS into its infrastructure projects Data source/ Agency DOH Verification Entity IVA Procedure See procedures for DLI 8.1, DLI 8.2 and DLI 8.3 8.1 : THJ Committee has approved a report developed by MMA identifying the gaps for developing NBS (Yes/No) Formula Gap report = US$5,000,000 The MMA will develop a report identifying the technical, regulatory, institutional, legal, methodological, and economic Description evaluation gaps for the development of NBS and MOP will review it."
632,The report developed by MMA and reviewed by MOP will be approved by the THJ Committee through minutes.
633,Data source/ Agency MMA Verification Entity IVA Procedure IVA reviews the minutes of the THJ Committee meeting approving the report.
634,"2 : MMA and MOP have published in their respective websites NBS guidelines developed by a multidisciplinary and inter-ministerial task force including specialists of MOP, MMA, MINAGRI and MDSF (Yes/No) Formula NBS guideline = US$ 5,000,000 MMA will form an NBS multidisciplinary and inter-ministerial working group (MMA, MOP, MINAGRI, MDSF) to create a guideline for integrating NBS into the hydraulic infrastructure portfolio."
635,The NBS guideline developed by the Description multidisciplinary and inter-ministerial task force will be published by MMA and MOP on their respective institutional websites.
636,Data source/ Agency MMA Verification Entity IVA Procedure IVA verifies the publication of the NBS guideline on MMA and MOP’s institutional websites.
637,"3: MOP has included NBS into two (2) PERHCs, and/or PMCauces and/or PMALLs in accordance with the NBS guidelines developed under DLR#8.2 (Number) Formula 1 PERHC and/or PMCauces and/or PMALLs including NBS= US$ 7,500,000 This indicator measures the numbers of plans that include NBS according to the definition of NBS established in the Description Framework Law on Climate Change (Article 3, letter t)."
638,"Data source/ Agency MOP Verification Entity IVA Procedure IVA verifies that two of the PERHCs and/or PMCauces and/or PMALLS include NBS in their projects 8.4: DOH has included NBS in the design of two (2) projects in its portfolio in line with the NBS guidelines developed under DLR#8.2 (Number) Formula 1 project with NBS = US$ 10,000,000 This sub-indicator measures the number of projects that incorporate NBS in its design according to the definition of Description NBS established in the Framework Law on Climate Change (article 3, letter t)."
639,Data source/ Agency MOP Verification Entity IVA Procedure IVA verifies that two of DOH’s projects incorporate NBS in their design.
640,"9 : Percentage of the number of MOP’s or other ministry’s investment projects that are included in the PERHCs (Percentage) Formula 1% = US$ 1,000,000 This indicator measures the percentage of the number of projects in the portfolio of MOP or other Ministry that form Description part of the PERHCs."
641,The goal is 20%.
642,Data source/ Agency DGA Verification Entity IVA   The World Bank Chile's Water Transition (P179117) IVA verifies the portfolio of MOP or other Ministry that form part of the PERHCs and compares it with the projects Procedure plans in the PERHCs.
643,  The World Bank Chile's Water Transition (P179117) ANNEX 2.
644,PROGRAM ACTION PLAN @#&OPS~Doctype~OPS^dynamics@padpfrannexprogramactionplan#doctemplate Action Completion Description Source DLI# Responsibility Timing Measurement MOP shall create Technical NA DGA (MOP) Due Date 30-Jun-2025 Outreach & an Outreach & Communications Communications Plan designed Plan explaining and ready for the purpose and implementation.
645,benefits of an integrated water governance structure at the basin level and to address stakeholder concerns.
646,MOP shall create Technical NA DGA (MOP) Due Date 31-May-2025 Advocacy an advocacy strategy has been strategy on the developed and is bill to improve being the governance implemented.
647,"structure for integrated water resources management at basin level, where the bill may be a proposal to modify existing legislation or to issue a new law MOP shall define Technical NA SSR Due Date 30-Jun-2025 Action Plan an action plan to (DOH/MOP) has been improve the developed and rural water will inform supply and development of sanitation the national 2030 service delivery Rural Water model, within   The World Bank Chile's Water Transition (P179117) the context of Supply and Law 20.998."
648,Sanitation Plan.
649,"MOP and MMA Technical NA MMA Due Date 30-Jul-2024 Working Group is shall form a established, and multi- a Coordinator is disciplinary and appointed."
650,inter-ministerial Nature-Based Solutions (NBS) Working Group to create guidelines for integrating NBS into its hydraulic infrastructure portfolio.
651,MOP shall Environmental NA MOP Due Date 01-Apr-2025 Environmental designate and Social and Social Focal Environmental Systems Points designated Specialist(s) with under each expertise in Results Area.
652,"occupational health and safety, and Social Specialist(s) as focal points to manage and supervise the environmental and social aspects of the activities of the three RA."
653,MOP and MMA Fiduciary NA MOP and Other Throughout List of contracts shall ensure that Systems MMA Program awarded to firms no expenses Implementation and individuals is under the sent to the Bank Program arise annually.
654,from a contract awarded to a company or   The World Bank Chile's Water Transition (P179117) individual debarred or suspended by the WB.
655,"MOP and MMA Fiduciary NA MOP and Other Throughout Inclusion of the shall include the Systems MMA Program World Bank World Bank Implementation ACGs’s fraud and ACGs’s fraud corruption and corruption provisions in the provisions, as bidding appropriate, in documents and the bidding contracts."
656,documents and contracts.
657,"MOP/MMA shall Fiduciary NA MOP and Other Biannually Full information, inform the WB Systems MMA throughout records and of F&C Program documentation allegations and Implementation."
658,the case provide submitted to the information World Bank as requested.
659,the World Bank may request.
660,"Regarding civil Environmental NA MOP Recurrent Continuous Successfully works that and Social implemented involve land Systems strategies to acquisition, address and restriction to reduce adverse land use, or economic and involuntary social impacts resettlement, (if resulting from not excluded land acquisition from the or restricted Program), the access to natural MOP shall resources for ensure that the communities, three conditions individuals, or as described in groups with the ESSA, are limited legal covered as resource rights."
661,"  The World Bank Chile's Water Transition (P179117) MOP shall create Technical NA MOP Due Date 01-Apr-2025 MOP has created a Program the unit Coordination consisting of at and Reporting least a Unit (PCRU) to Coordinator, a facilitate monitoring and administrative evaluation (M&E) tasks and Specialist, and a monitoring and Fiduciary evaluation of the Specialist."
662,  The World Bank Chile's Water Transition (P179117) ANNEX 3.
663,IMPLEMENTATION SUPPORT PLAN 1.
664,"The World Bank will offer complementary (1) support for program implementation and (2) technical assistance for the PforR, through the following actions aimed at facilitating Program execution: Support for program implementation • Collaborate closely with the PCRU to evaluate the progress of Program implementation, assess the attainment of Program results and DLI, and review the execution of the PAP."
665,"• Monitor the capacity of the PCRU and assist the Borrower in enhancing institutional capabilities and addressing implementation challenges, offering assistance in resolving any operational concerns tied to the Program."
666,"• Review documentation and offer feedback as necessary before using it as evidence to demonstrate the fulfillment of DLIs, as appropriate."
667,"• Collaborate closely with the PCRU to ensure effective communication on the World Bank Program objectives and messaging, ensuring clear and cohesive communication strategies are in place."
668,"• Oversee compliance with legal agreements, maintain records of risks, and suggest corrective actions to enhance Program performance, if necessary."
669,• Support the Borrower and government counterparts in monitoring changes in risks to the implementation of the Program.
670,• Monitor the performance of fiduciary systems and potential shifts in fiduciary risks associated with the Program.
671,• Supervise the preparation of the Program's financial statements and provide support to the Borrower as required.
672,"• Examine the Program's annual financial audit report, engage in discussions with the Borrower, and oversee the implementation of auditor recommendations."
673,"Based on audit report findings, assess and analyze changes in the Program's fiduciary performance, proposing corrective measures as needed."
674,Technical assistance for PforR implementation 2.
675,"The World Bank will provide complementary technical assistance towards Program implementation, although the Borrower has exclusive responsibility for Program implementation and achievement of DLIs."
676,"The Program activities to be implemented by the Borrower, as organized under the three Results Areas and described throughout this PAD, are sufficient to reach the Program’s objectives and DLIs."
677,"The additional technical support described below is complementary to the Government’s efforts, in view of bringing international learning and global experiences to Chile."
678,The technical assistance is contingent upon the presence and availability of additional complementary or supporting BETFs.
679,Support towards the MMA and DGA for the improvement of a river basin governance structure.
680,"Building on the existing institutions at basin level and the existing water rights market, Chile has taken on a new ambitious task of improving its river basin governance structure for the integrated management of water resources."
681,The GoC is seeking global expertise and international best practices on this front.
682,"Support towards the SSR throughout its implementation of Law N°20,998 for improved rural WSS services."
683,"The SSR has requested World Bank support to improve its delivery model, where they will identify areas for technical capacity strengthening to effectively take on the new tasks."
684,Support has also been requested to gather international experience to enhance their capacity to supervise and inspect the quality of WSS services.
685,"This includes learning how to establish technical standards, including the implementation of rural WSS information system; the provision of technical assistance and training to   The World Bank Chile's Water Transition (P179117) operators, administrators, and communities; and guaranteeing the sanitation systems' efficient operation and maintenance."
686,The World Bank will leverage its knowledge to guide the GoC in defining the content and strategic areas to be included in the Rural WSS Strategic Plan to 2030. c. Support towards the DOH as it introduces resilience by design approaches in irrigation works.
687,The GoC is seeking support to enhance the adaptability of irrigation works to current water challenges such as climate variability and scarcity.
688,"This involves integrating resilience principles, new technologies, flexible management practices, and social-environmental factors."
689,The World Bank will bring in international experience to support the GoC to introduce resilience by design approaches in order to make irrigation systems sustainable and functional in unpredictable events.
690,Such approaches also will contribute to the efforts to mitigate climate change impacts on the country’s agriculture and improve food security.
691,d. Support towards the DOH as it incorporates NBS in flood control works.
692,"Chile is highly vulnerable to floods, which are becoming more frequent and severe due to climate change and has relied on traditional gray infrastructure solutions, such as dams."
693,"While gray infrastructure has been effective in meeting water needs in the past, it has also shed light on several limitations in changing conditions, particularly those associated with climate change."
694,"Thus, the DOH has requested the World Bank support in the creation of an enabling environment for NBS in flood works and will develop a regulatory and institutional framework with a defined portfolio as well as funding for integrated green and gray solutions."
695,The World Bank will provide global learning and technical assistance to combine natural and engineered solutions in order to improve the effectiveness and resilience of Chile’s flood management systems and reduce its vulnerability to extreme events.
696,Main focus of Implementation Support Partner Time Focus Skills Needed Resources Estimate Role First twelve - Compliance with PAP actions.
697,"months - Capacity building for the PCRU if needed to - WSS operate as defined in the Operations - WRM Manual, including on strengthening - Monitoring and Three implementation understanding of the PforR process."
698,"evaluation support missions, three - Ensure arrangements for IVA are clear, and - Financial technical missions ensure common understanding of None - Legal verification protocol among involved foreseen."
699,- Procurement and 6 missions x 8 people x 1 institutions.
700,financial week = 48 person weeks - Strengthen monitoring and evaluation management over the first 12 months system.
701,#NAME?
702,12-48 months - Review implementation - WSS Two implementation progress.
703,#NAME?
704,"evaluation technical missions per None - Continue roll-out of technical assistance - Financial year, Mid-Term Review foreseen."
705,"activities for the three Results Areas, - Legal adjusting the technical assistance lines of - Procurement and 2 x 4 years x 8 people x 1 work as needed."
706,financial week   The World Bank Chile's Water Transition (P179117) management = 128 weeks - E&S 2 x 12 people x 1 week = 48 weeks 5 people x 2 weeks = 10 weeks Total 186 weeks over 48 months Other - Independent audit and assessment of Independent technical 3 people x 6 weeks = 18 None expertise weeks foreseen.
707,verification of results Task Team Skills Mix Requirements for Implementation Support Skills Needed Number of Staff Weeks Number of Trips Comments Technical: WRM (TTL) 50 14 Region-based Technical: WSS (Co-TTL) 50 6 Country-based Technical: WSS 20 10 Region-based Legal 10 n/a Region-based Financial management 30 13 Region-based Procurement 30 13 Region-based Social 30 13 Region-based Environment 30 13 Region-based Monitoring and evaluation 30 10 Region-based Role of Partners in Program Implementation Name Institution/Country Role Global Water Security and Multi-donor GWSP is providing technical assistance to support PforR Sanitation Partnership (Bank-managed Program technical assistance activities.
708,(GWSP) programmatic trust fund) Quality Infrastructure Japan QII is providing technical assistance to support PforR Investment Partnerships (Bank-managed programmatic trust Program technical assistance activities.
709,(QII) fund)   The World Bank Chile's Water Transition (P179117) ANNEX 4.
710,ORGANIZATIONAL STRUCTURE OF IMPLEMENTING INSTITUTIONS 1.
711,The Program will be implemented by the Ministry of Public Works (MOP) and the Ministry of Environment (MAA).
712,"As mentioned earlier, the Ministry of Public Works (MOP) plays a vital role in managing water resources and providing essential rural water supply services, irrigation infrastructure, and flood protection."
713,"Their responsibilities encompass maintaining, rehabilitating, and developing public infrastructure services and water resources."
714,"To effectively carry out these tasks, the MOP is internally divided into two Directorates: the Directorate General of Water (DGA) and the Directorate of Hydraulic Works (DOH)."
715,"The DGA holds responsibility for water use planning, management, and allocation, while the DOH focuses on the planning, design, and construction of hydraulic infrastructure, including dams, canals, and irrigation systems."
716,"Working in unison, these two directorates ensure the efficient and sustainable management of water resources in Chile."
717,"Another essential agency, the Ministry of the Environment (MMA), is tasked with the formulation and implementation of policies that promote the sustainable utilization of natural resources, including water."
718,"Moreover, the MMA is dedicated to mitigating the adverse impact of human activities on the environment."
719,"As part of its commitment, the MMA collaborates with other government agencies and stakeholders to monitor compliance with environmental regulations concerning water management."
720,The aim is to ensure the long-term viability and health of Chile's water resources.
721,"An important initiative under the leadership of the MMA is the Transición Hídrica Justa (THJ) Committee, which further emphasizes their dedication to the sustainable management of water resources in Chile."
722,The MMA's increasing collaboration with various stakeholders indicates a collective effort towards preserving and safeguarding the country's water resources for future generations.
723,Figure 1 below illustrates the MOP's organizational structure.
724,  The World Bank Chile's Water Transition (P179117) Figure 1.
725,Organizational Structure of the Ministry of Public Works Source: MOP 4.
726,"Exempt Resolution No0665 marked a significant milestone in the Ministry of the Environment's (MMA) efforts towards water management and sustainability by establishing the Office of Just Socio-ecological Transition (Oficina de Transición Socioecológica Justa, OTSJ), mapped under the Undersecretary of Environment."
727,This specialized unit assumes the primary role in driving the THJ strategy.
728,The main objective of the OTSJ is to lead and facilitate the implementation of the THJ strategy in a well-coordinated manner.
729,The responsibilities entrusted to the OTSJ are multi- faceted and crucial for achieving a successful socio-ecological transition.
730,"The OTSJ is in charge of formulating, coordinating, and closely monitoring the design and execution of the just socio-ecological transition strategy."
731,This comprehensive approach ensures that all aspects of the transition process are carefully planned and effectively executed.
732,"Furthermore, the OTSJ plays a central role in defining, coordinating, and providing support to various sectoral strategies carried out under the broader THJ strategy."
733,"By aligning sectoral efforts, the OTSJ promotes synergy and   The World Bank Chile's Water Transition (P179117) maximizes the impact of each initiative."
734,"Figure 2 below illustrates the MMA's organizational structure, including the placement of the OTSJ under the Undersecretary of Environment."
735,Figure 2.
736,Organizational Structure of the Ministry of the Environment’s Undersecretary of Environment Source: MMA Note: The MMA only counts with one undersecretary 5.
737,"In addition, the OTSJ designs methodological tools tailored to the unique challenges of the just socio-ecological transition."
738,"These tools facilitate a systematic and efficient approach to the process, making it more accessible to stakeholders and the public."
739,"Recognizing the need for holistic coordination, the OTSJ also takes the responsibility of defining and designing strategies for the installation of just socio-ecological transition processes."
740,This task involves fostering collaboration between sectors and ensuring that all transition-related efforts are well-integrated and mutually reinforcing.
741,"As the implementation progresses, the OTSJ keeps an eye on territorial work, consistently monitoring and following up on the initiatives."
742,"Such monitoring enables timely interventions and adjustments, ensuring that the objectives set for the just socio-ecological transition are met successfully."
743,"Moreover, the OTSJ plays a critical role in reporting progress and outcomes related to the THJ strategy."
744,"The transparent reporting mechanisms serve to keep all stakeholders informed and engaged, while also ensuring accountability and transparency throughout the process."
745,  The World Bank Chile's Water Transition (P179117) 6.
746,"Therefore, the establishment of the OTSJ through Exempt Resolution No0665 represents the MMA's dedication to sustainable water management."
747,"By spearheading the THJ strategy and undertaking diverse responsibilities ranging from planning and coordination to monitoring and reporting, the OTSJ is at the forefront of Chile's efforts to achieve a just socio-ecological transition."
748,It is important to mention that the DOH houses the Sub-Directorate of Rural Water Supply and Sanitation Services (SSR).
749,"The SSR is responsible for the provision of technical support to rural water supply providers, including the registration of Rural WSS service providers, the creation of a One Stop Shop rural WSS investment unit (Ventanilla Unica), and the design and implementation of a Rural WSS information system."
750,"Law N°20,998 states that the SSR is now responsible to provide this assistance for both rural water and sanitation service providers, which were previously provided by urban water utilities through ""agreements"" with DOH."
751,Figure 3 below illustrates the SSR's organizational structure.
752,Figure 3.
753,Organizational Structure of the Sub-directorate of Rural WSS Services Source: DOH  
754,STRATEGIC CONTEXT A.
755,Country Context 1.
756,"Peru is an upper middle-income country with just over 33 million inhabitants and an economy that experienced one of its deepest recessions in recent years, exposing vulnerabilities in its path towards shared prosperity."
757,"Between 2002 and 2019, the Peruvian economy exhibited one of the highest annual growth rates in Latin America, with an average annual growth of Gross Domestic Product (GDP) of 5.1 percent."
758,"However, following the COVID pandemic in 2020-21, GDP contracted sharply by 11 percentage points – one of the highest declines among the major Latin American economies."
759,"The poverty rate increased by almost 12 percent (reaching 32.6 percent in 2020), and the middle class shrunk by almost 44 percent (from 14 million citizens in 2019 to 7.9 million in 2021)."
760,"Almost half of the rural population nationwide lives in poverty and 14 percent live in extreme poverty (INEI, 2021)."
761,"The majority of Peru's extremely poor live in the rural areas of the Sierra and Selva1 (INEI, 2019), while most economic growth is concentrated in urban areas along the Costa."
762,Peru's Gini Index2 of 43.8 reflects the country's high inequality in income and access to basic services.
763,"Although Peru's economy has rebounded with the global recovery from the pandemic, GDP growth is still below its pre-pandemic trend and remains subject to significant uncertainty linked to (i) political and social unrest, (ii) increasing global food and energy prices, (iii) declining commodity prices, and (iv) more frequent and intense climate-related disasters."
764,Peru’s economic vulnerability is exacerbated further by the impact of climatic events and other natural disasters.
765,"From 2003 to 2019, Peru was affected by 61,708 climatic and non-climatic emergencies such as intense rains, floods, droughts, earthquakes, and landslides.3 Peru is also one of the countries most affected by the climatic phenomenon known as El Niño Southern Oscillation (ENSO),4 which significantly influences rainfall and temperature patterns and can lead to widespread occurrence of floods and droughts."
766,"Although the ENSO phenomenon has existed for thousands of years, its frequency, intensity, and the resulting extreme weather events are projected to be further exacerbated by climate change (see Annex 6)."
767,"Future climate projections indicate rising surface temperatures and increased rainfall variability, while the frequency of extreme ENSO events is projected to increase by the end of the 21st century.5 ENSO events amplify climate hazards and risks, especially for droughts, intense rainfall, floods, and landslides."
768,"The Peruvian government expects that by 2070, precipitation levels could be up to 50 percent higher than in 2020 in the country’s humid areas and as much as 40 percent lower in the country’s dry areas.6 Along with increasing glacial melts, these climatic risks significantly impact the Peruvian economy through availability of water for agriculture, domestic and industrial use, and energy generation."
769,"Several climatic issues affect the Sierra, Costa, and Selva regions with negative impacts on agricultural productivity and food security."
770,"In the Sierra and high-altitude areas of the Selva (where around 50 percent of the rural population lives in poverty), meteorological hazards include exposure to high temperatures (including extreme heat) contrasted with extremely cold and freezing temperatures, known as heladas.7 In these highland areas, only about 20 percent of cultivated land is irrigated, exposing agricultural production to changes in rainfall patterns."
771,"Moreover, areas in the Costa and Sierra regions are vulnerable to low precipitation levels (less than 400 mm per year), including droughts.8 In the Selva, climate 1 The Andean Mountains divide the country in three main geographic zones: the Coast ( Costa) a narrow stretch of desert along the Pacific Ocean on the western border; the Highlands (Sierra) in the central part of the country; and the Amazon Rainforest (Selva) in the east."
772,2 The Gini Index is a measure of income inequality incorporating various data into a single statistic summarizing the dispersion and distribution of income.
773,"3 World Bank: Peru Country Climate Development Report (CCDR), 2022."
774,"4 ENSO is a global climatic phenomenon that periodically disrupts the oceanic-atmospheric system, causing changes that can affect the weather (particularly rainfall patterns) in Peru."
775,5 NOAA (National Oceanic and Atmospheric Administration).
776,“ How Will Climate Change Change El Niño and La Niña?”.
777,6 Presidencia del Consejo de Ministros del Perú.
778,“Política nacional de gestión del riesgo de desastres al 2050 ” (page 114).
779,7 Meteorological cold waves (heladas) in the Sierra happen when the temperature drops below 0°C.
780,"Exposure exists in almost all areas above 3,000 meters above sea level (MASL)."
781,The southern Sierra and the highest elevations are most exposed.
782,Cold waves can kill plant tissue for individual crops and affect yields.
783,"8 Droughts usually impact the southern parts of Peru the hardest, particularly in the Sierra as well as in some of the coastal territories."
784,"Most of the precipitation in Sierra occurs between November and March, while extensive dry periods during the rest of the year commonly lead to water deficits."
785,"  The World Bank Irrigation for Climate Resilient Agriculture (P179037) vulnerabilities consist primarily of flooding and, to a smaller extent, reduced water availability and erosion."
786,"The resulting water security9 challenges affect agricultural production and crop yields, thereby impacting livelihoods and food security.10 5."
787,"Women are generally affected more adversely, both individually and as caretakers, by the impacts of climate change and natural disasters."
788,"During droughts, for example, women and girls tend to eat less and spend more time collecting water.11 It is estimated that women of childbearing age constitute 43.9 percent of the population potentially vulnerable to natural phenomena of very high recurrence.12 B."
789,Sectoral and Institutional Context Sectoral Context 6.
790,"The agricultural sector represents approximately six percent of Peru’s GDP and 16 percent of the country’s total exports.13 Almost a quarter of the total labor force, and more than half of the labor force in rural areas are employed in the agricultural sector (World Bank, 2022)."
791,"The agriculture sector is also Peru’s biggest water user, accounting for 89 percent of water withdrawals in the country.14 7."
792,"Irrigation is a key driver of economic growth as it improves agricultural production, strengthens rural development, and increases resilience to climate change by bridging the gap between crop water requirements and precipitation."
793,"Even though irrigated land represents only 36 percent (2.6 million hectares) of all agricultural land, approximately two-thirds of the country's agricultural output15 is produced on irrigated land."
794,"Moreover, irrigation could increase the country’s GDP by 0.8 percent per year through agricultural productivity gains (World Bank, 2022)."
795,"However, irrigation systems in Peru face a variety of challenges – low overall agricultural water use efficiency (WUE)16 – at only 30 percent,17 vulnerability of small-scale farmers, and low support capacity of local governments.18 The low levels of WUE in irrigation systems are, in large part, due to the deteriorating condition of approximately 57 percent of Peru's existing irrigation infrastructure."
796,"Limited use of efficient on-farm irrigation technologies is also contributing to low water productivity, as they are not yet widely available or used throughout the country."
797,"More efficient on-farm irrigation systems19 enable farmers to use less water for their crops, thereby improving the overall irrigation performance, increasing agricultural water efficiency, and boosting agricultural productivity ."
798,"Only 13 percent of irrigated farmland employ modern on-farm water application methods (defined by the timely application of 9 Water security is defined as the availability of an acceptable quantity and quality of water for health, livelihoods, ecosystems, and production, coupled with an acceptable level of water-related risks to people, environments, and economies (Peru Water Security Diagnostic, 2022)."
799,"10 The FAO (2002) defines food security as ‘a situation that exists when all people, at all times, have physical, social and eco nomic access to sufficient, safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life.’ Peru has become the most food-insecure country in South America, with 51 per cent of the population is living in moderate food insecurity (FAO, 2021)."
800,"11 The United Nations Framework Convention on Climate Change, 2022."
801,"Dimensions and examples of the gender-differentiated impacts of climate change, the role of women as agents of change, and opportunities for women."
802,"12 Ministerio de la Mujer y Poblaciones Vulnerables, 2016."
803,“Convirtiendo los escenarios de desastre en oportunidades para la construcción de nuevos escenarios de igualdad.
804,El MIMP ante el Fenómeno de El Niño”.
805, 13 World Bank Group.
806,Peru Country Climate and Development Report.
807,CCDR Series.
808,"World Bank, Washington, DC."
809,"14 INEI, 2020, Perú: Brechas de Género 2020 Avances hacia la igualdad de mujeres y hombres."
810,"15 Agricultural output is defined as the total value of crops produced in economic terms, although it has also been used to denote (physical) crop yields."
811,16 Water use efficiency (WUE) is defined as the ratio between the volume of water used for irrigation and the volume extracted or derived from a water source for that purpose.
812,"It can be divided into storage, conveyance, distribution, and application efficiencies."
813,It is measured by crop water consumption per water withdrawals.
814,Water consumption refers to the amount of water that is depleted and thus unavailable for further use.
815,Water withdrawal refers to the amount of water removed (or diverted) from a surface water or groundwater source.
816,17 The 30 percent overall irrigation water use efficiency in Peru is notably lower than those in Mexico (44 percent) and in Brazil (48 percent).
817,18 Source: Format No.
818,"4-A, Gap Indicator ""Percentage of agricultural land without technified irrigation"", approved by Ministerial Resolution 0374-2021- MIDAGRI."
819,19 On-farm irrigation systems include drip or sprinkler systems.
820,"Drip systems lead water through a pipe system to the field, with drops of water delivered to plants at or near the root."
821,"In sprinkler systems, water is led to a field through a pipe system under pressure, and artificial rainfall is created to water the crops."
822,  The World Bank Irrigation for Climate Resilient Agriculture (P179037) water in the volumes required).
823,"Efficiency is also commonly improved through sustainable on-farm agronomic practices20 that focus on soil moisture conservation, thereby reducing the need for irrigation water supply to fields."
824,Small- and medium-sized family farmers are among the most vulnerable groups and are particularly limited by both the lack of access to technological irrigation solutions and training on their effective use.21 Fifty percent of family farmers – defined as holding less than two hectares of land – possess no or limited irrigation capacity for their plots.
825,"In addition, many lack information and training necessary to grow their businesses and gain improved access to markets."
826,Nearly two-thirds of small- and medium-scale farmers have indicated that they need information on crop management practices and half reported needing information on managing plant disease and pests to further develop their businesses.
827,Subnational governments have limited capacity to design and implement irrigation investment projects.
828,"Although subnational governments are the main financiers and implementers of irrigation investments, representing roughly 80 percent of the total budget for irrigation, these investments have not translated into significant improvements in irrigated area coverage or efficiency."
829,"On average, only 60 percent of irrigation investments were fully executed, with efficient irrigation systems installed in only about 1 percent."
830,Little is known about the quality or impact of these investments given the lack of a sound monitoring and evaluation (M&E) system that would allow for performance assessments of schemes.
831,Irrigation investments are often made without considering the broader hydrological and hydrogeological context.
832,Water resources for agriculture are generally inadequately distributed and managed across many of the most densely and economically active areas of Peru such as the Costa and the Sierra.
833,"This leading to water deficits in many basins and, hence, intense competition for water resources among water users."
834,Many irrigation systems have been established without detailed knowledge about water supply or demand in the respective watersheds.
835,"As a result, the Government of Peru (GoP) prioritized the rollout of efficient irrigation interventions as part of its development agenda, given the direct impact of irrigation on reducing poverty and enhancing food security for Peru's poorest in rural areas."
836,Public sector financing is required as the targeted beneficiaries have limited capacity to access efficient irrigation infrastructure and technology given their high capital cost and relatively low revenue from farmers’ existing production.
837,"Accompanying sustainable agronomic practices are also expected increase the efficiency of water use by maintaining soil health and conserving its moisture, thereby leading to improved productivity and resilience to shocks."
838,"Technical Assistance (TA) and training are necessary for ensuring the positive impact of technological adoption and technical sustainability of irrigation systems through their improved management, given the general lack of TA and training services for farmers in Peru22 – reaching 11 percent of the total agricultural producers nationwide and 5 percent of small- and medium-sized farmers.23 The Sierra Irrigation Subsector Project (P104760), which extended access to TA, training, and efficient irrigation systems to farmers in the Sierra regions, demonstrated the effectiveness of such investments on poverty reduction for rural populations in areas implemented."
839,Gender gaps persist in Peru’s agriculture sector.
840,"Women comprise nearly half (46 percent) of agricultural producers in rural areas and manage approximately 29 percent of farms, compared to 71 percent managed by men (PSI, 2023).24 Due to the temporary work migration of men to urban areas, women are typically responsible for most of the tasks related to agricultural production, while irrigation administration is the responsibility of men."
841,"Although women play a critical role 20 Agronomic practices are those associated with the field production of crops for food, fiber, and fodder."
842,"Farmers can incorporate specific practices to manage crops, improve soil quality, enhance water usage, and improve the surrounding environment by focusing on the conservation and regeneration of water and soil resources."
843,"21 Estrategia de Emprendimiento de la Mujer Rural e indígena, 2022."
844,"22 Reduced performance of technified irrigation infrastructure generally occurs due to a lack of sufficient training and TA for those who manage, operate, and maintain the schemes."
845,"23 The TA and training services in Peru reached 230,070 farmers, which accounts for 11 percent of the total agricultural producers nationwide (and 5 percent of small- and medium-sized farmers), of which 21 percent were women."
846,Source: PSI.
847,(2023).
848,Social and Gender Assessment (SGA).
849,"24 Additionally, a Peruvian female farmer typically manages an average of 1.8 hectares of agricultural land, while a male farmer – 3 hectares."
850,Source: Peru: Gender Gaps 2020 – Progress towards equality for women and men (May 2021).
851,"  The World Bank Irrigation for Climate Resilient Agriculture (P179037) in how water is used, saved, and managed, 25 they are generally excluded in the decision-making processes related to irrigation management and represent, in general, a small fraction of the water users."
852,"Moreover, women have limited earning potential in agriculture."
853,26 They are also often under-represented in irrigation institutions both as members and leaders.
854,"27 Their limited participation in Water User Organizations (WUOs) impacts their voice in decision-making processes about the management of irrigation systems (INEI, 2020),28, only representing 13.6 percent of the board of directors of Peru’s 43 Water User Boards (Juntas de Usuarios) as of 2021.29 This is partially because women prefer not to accept unpaid leadership positions, instead choosing to engage in income-generating productive activities to support their families."
855,"Women also have less access than male farmers to irrigation technology, TA and training, financing, 30 and information about markets to improve their agricultural productivity."
856,"Female producers face time barriers due to diverse responsibilities (e.g., multiple family care activities and tasks related to cultivating the land)."
857,"31 Women’s low education levels32 also limit their understanding of offers for technical agricultural training, as these offerings are not typically designed to accommodate their learning limitations."
858,Institutional Context 17.
859,"The Ministry of Agricultural Development and Irrigation’s (Ministerio de Desarrollo Agrario y Riego [MIDAGRI]) Sub-sectoral Irrigation Program (Programa Subsectorial de Irrigaciones [PSI]), serves as the irrigation subsector’s executing body at the national level."
860,The PSI’s objective is to improve agricultural water productivity by: (i) expanding the use of efficient irrigation technologies and on-farm practices to promote the efficient and sustainable use of water for irrigation; (ii) supporting the development and strengthening of the management capacity of WUOs and of Farmer Groups (FGs) in irrigation hydraulic blocks.
861,PSI will serve as the project implementation unit (PIU) for the proposed Project.
862,Regional and Local Governments (‘Gobiernos Regionales’ and ‘Gobiernos Locales’) are responsible for planning and promoting irrigation development33 within their jurisdictions and managing both self and externally financed program resources.
863,These subnational (regional and local) governments apply relevant standards and policies to the design and implement sector investments.
864,"Regional governments, specifically, are responsible for providing support to both local governments and irrigation service providers."
865,"The National Water Authority (Autoridad Nacional del Agua [ANA]) oversees improvement of water resource management across the country and operates through its decentralized agencies.34,35 This includes a deficiency in accounting for both upstream and downstream users of water, particularly those impacted by irrigation investments and 25 De Nys, E., Hidrogo, C., Lajaunie, M., Chinarro, L. 2013."
866,Empowering women in irrigation management: the Sierra in Peru.
867,Washington DC; World Bank.
868,26 An estimated 43.5 percent of women in rural areas do not generate their own income rendering them economically dependent on men.
869,"Moreover, female farmers tend to focus less on market-oriented agriculture compared to male farmers."
870,"Consequently, 52.6 percent of rural women are poor, compared to only 15 percent of men."
871,"Source: INEI, 2020, Perú: Brechas de Género 2020 Avances hacia la igualdad de mujeres y hombres."
872,"27 Within Peru’s 43 Water User Boards (Juntas de Usuarios), only 13.6 percent of the board of directors elected for the period o f 2021 to 2024 are women."
873,"Of the 944 elected directors or board members, 128 are female directors."
874,"Of these, 5 women are presidents and 9 are vice-presidents of the Water User Boards."
875,Source: PSI.
876,(2023).
877,Social and Gender Assessment (SGA).
878,"28 USAID, 2020: Gender Analysis - PERU, 2019."
879,Gender gaps in the management of natural infrastructure and water in Peru: Research Summary.
880,"29 WUOs (Law of Water Users’ Organizations 30157), by establishing that the WUOs´ Boards should have at least three women member s. 30 Per the 2012 census, out of the total number of female agricultural producers, only 6.4% obtained a loan, compared to 10.4% of men (CENAGO, 2012)."
881,"31 When it comes to the average weekly hours spent on unpaid domestic work, women spend 39.28 hours on average, while men's average is 15.54 hours."
882,32 Women account for 61% of adults without primary education compared to 23% of men.
883,The percentage of illiterate individuals over 15 years of age is also more than double for women at 8.7% compared to men's 3%.
884,Source: PSI.
885,(2023).
886,"Social and Gender Assessment (SGA), draft version."
887,"33 Examples of irrigation development include those that fall under the concept of “technified Irrigation” ( riego tecnificado), which, as defined by Law No."
888,"28585, seeks to promote “irrigation systems that allow the rational and efficient use of water to increase agricultural productivity”."
889,"34 Technical support is provided through ANA via its 3 types of decentralized agencies (órganos desconcentrados): Administrative Water Authorities ( Autoridad Administrativa del Agua, AAA), Local Water Authorities (Autoridad Local del Agua, ALA), and Water Resources Basin Councils (Consejo de Recursos Hídricos de la Cuenca, CRHC)."
890,"However, these also lack the resources to provide support when and where needed, causing a lack of skills and technological solutions to improve water management among users."
891,35 Relevant information and management capacity provided by ANA at the local level remains limited.
892,The constraints related to irrigated agriculture pertain to lack specific information on the water balances of irrigation schemes or their impact on respective catchments.
893," 0 The World Bank Irrigation for Climate Resilient Agriculture (P179037) interventions, and water quality (e.g., polluted run-off water from fields)."
894,ANA oversees water user organizations (WUOs).
895,"Water Users Organizations (WUOs) are responsible for distributing water among users as well as the management, operation, and maintenance (MOM) of irrigation schemes and the collection and administration of water tariffs ."
896,"The term WUO describes three different types of hierarchically coordinated user organizations, namely (i) water user boards (junta de usuarios)36 that oversee (ii) water user commissions and (iii) water user committees.37 Users within each irrigation WUO share water and pool their financial, technical, material, and human resources for the MOM of water delivery systems under their control.38 21."
897,WUOs have struggled to achieve operational efficiency as well as financial and technical autonomy.
898,"Although responsible for the MOM of over 1.4 million ha of irrigated land and serving almost three quarters of a million users, WUOs lack sufficient technical capacity, specialized equipment, and reliable information on the availability and use of water resources (supply and demand) to improve their operational efficiency in their respective areas.39 WUOs also struggle to reach financial sustainability due to low water tariffs and collection rates."
899,Farmer Groups (FGs) (Grupos de Gestión de Riego Tecnificado [GGRT]) manage sub-projects and comprise producers at the lower-level sections of a hydraulic block.
900,FGs are responsible for the management of irrigated water from the water intake structure to the application of water on-farm and report to PSI.
901,FGs were established for the purpose of managing ‘technified’ irrigation at each sub-project level to ensure that the water needs of each farmer are met and that their section of the block remains in good condition.
902,They work together with commissions and committees that report to ANA.
903,FGs are also considered able to assume the commitment to make counterpart contributions to the Project.
904,"After several years of discussion and planning, and a careful analysis of the above-mentioned challenges, the GoP decided to reinforce its engagement in modern irrigation water management and seek World Bank support in the form of the proposed Project, to assist them with investments in, and uptake of technified irrigation approaches."
905,The Project also builds on the experiences from the World Bank–financed Sierra Irrigation Subsector Project (P104760).
906,Farmers who participated in the Sierra Project reported 25 to 500 percent increases in net household income per hectare from improved water availability through advances in off-farm irrigation schemes and on-farm technology and agronomic practices used.
907,C. Relevance to Higher Level Objectives 24.
908,The Project is well positioned to contribute to Peru's General Government Policy (2021–26) for a more sustainable and inclusive growth model.
909,"The Project is aligned with the following two policy actions: (i) promoting water security in agriculture through water storage solutions, water-efficient irrigation systems, and sustainable water management (considering social, productive, and environmental uses), while strengthening women´s status as agricultural producers; and (ii) strengthening environmental protection, disaster risk management, and climate change adaptation and mitigation."
910,The Project is likewise aligned with national policies and strategic plans.
911,"The National Agricultural Policy (2021- 2030) that aims to improve competitive agricultural development by 36 percent by 2030, as attributed to a reduction of family farmers at subsistence level, and improved management of natural resources for sustainable agricultural production."
912,The policy’s target population includes both family and corporate farming agricultural producers.
913,The Project further responds to the MIDAGRI’s Multiannual Sector Strategic Plan (PESEM) 2015-2027 that has two objectives: (i) to manage natural resources and biological diversity within the competence of the agricultural sector in a sustainable manner 36 The 43 Water User Boards (JUs) oversee the 130 sub-projects that mostly correspond to a single commission or committee.
914,"Correspondingly, each of the 130 subprojects corresponds to a single FG, which cover mostly 1 commission or committee."
915,"In 7 cases, a single FG encompasses more than one commission and committee."
916,"Thus, the total number of water user institutions involved in the proposed Project is 180."
917,"37 User Committees (Comités de Usuarios) represent the base level of all WUOs, organized around lower levels of distribution structures of hydraulic blocks."
918,"38 In accordance with Peru’s Water Resources Law, WUOs are civil associations whose purpose is the organized participation of wa ter users in the multisectoral management and sustainable use of water resources."
919,"They operate under the auspices of Peru’s National Water Authority (Autori dad Nacional del Agua, ANA) – the highest technical and regulatory body for the management of water resources in the country."
920,"39 While PSI provides support to farmers who are members of WUOs, its budget program limits the adequate support and does not enable purveying the latest, sustainability-focused advances in irrigation interventions."
921," 1 The World Bank Irrigation for Climate Resilient Agriculture (P179037) and (ii) to increase agricultural competitiveness and market insertion, with emphasis on small agricultural producers."
922,"The Project is also aligned with the Ministry of Agriculture’s (MIDAGRI) comprehensive national climate adaptation strategy for the agriculture sector, with measures related to building resilience and maintaining productivity, including investing in irrigation infrastructure and site-specific land-use planning to mitigate water scarcity."
923,All activities of the Project are consistent with several national and global commitments related to climate change.
924,"The project is in-line with Peru's 2020 Nationally Determined Contribution (NDC) and 2021 National Adaptation Plan (NAP) for climate change mitigation and adaptation, identifying water as a priority sector for addressing climate change and limiting its impact."
925,"The Project puts an emphasis on implementing energy- and water-efficient irrigation systems, increasing water storage, and strengthening water resources management."
926,The Project is also aligned with the public investment recommendation of Peru’s Climate Country Diagnostic Report’s (CCDR) to improve access to efficient irrigation systems to build resilience in the agriculture sector and boost economic growth while protecting vulnerable populations.
927,"Peru's CCDR also stresses the importance of adaptation to water-related shocks given the country’s significant spatial and temporal rainfall imbalances and uneven development patterns across its territory (World Bank, 2022)."
928,The Project is also aligned with the World Bank's mission of ending extreme poverty and boosting prosperity on a livable planet.
929,"By promoting water use efficiency and developing improved irrigation infrastructure, the operation is expected to enhance agricultural productivity and increase farmer revenues in targeted areas with positive impacts on water and food security."
930,"The proposed operation is also aligned with the WBG Country Partnership Framework for Peru FY23-FY27, discussed by the Board of Executive Directors on  (Report179046), specifically Objective 5: Enhance climate-change mitigation and adaptation under the High-Level Outcome 3: Increased resilience to shocks."
931,"The Project is also closely aligned with the World Bank's strategic framework for moving ""From Crisis Response towards Green, Resilient, and Inclusive Development"" (GRID) – directly supporting its Pillar 4: ‘Strengthening Policies, Institutions, and Investments for Rebuilding Better,’ and the goal of the World Bank Group’s 2021-2025 Climate Change Action Plan of aligning climate and development goals while boosting growth."
932,"Moreover, the Project complements the Bank's ongoing and pipeline programs to support sustainable and inclusive growth in Peru and builds on the Bank's longstanding policy dialogues in these areas."
933,"Lastly, the Project supports the Sustainable Development Goal (SDG) number 2 to end hunger and achieve food security."
934,PROJECT DESCRIPTION A.
935,Project Development Objective PDO Statement 29.
936,The Project development objective (PDO) is to improve the sustainability 40 and efficacy of water services for irrigation and the productivity of water on family farms in selected areas that are vulnerable to climate change.
937,PDO Level Indicators 30.
938,The PDO level indicators are the following: PDO 1: Improve the sustainability and efficacy of water services for irrigation.
939,1) Water User Organizations that increase operational efficiency in their hydraulic blocks by 10 percent41 (Percent).
940,2) Regional Governments (GOREs) that have at least 500 hectares of ‘technified’ irrigation projects in their respective multiannual investment portfolios.
941,(Number).
942,"3) Average increase of the tariff collection rate of FGs participating in the Project to generate resources for an 40 For the purposes of the Project, sustainability encompasses technical, institutional, and financial dimensions as measured by PDO indicators 1 – 3."
943,41 Operational efficiency evaluates the quality of the operation of the irrigation system between the intake of the water source and the input to the plots and is defined by the relationship between the water volumes distributed at the level of the users' properties or plots and the volumes extracted or derived from a given water source.
944, 2 The World Bank Irrigation for Climate Resilient Agriculture (P179037) adequate operation and maintenance of their respective irrigation systems (Percent).
945,4) Beneficiaries report an increase in satisfaction with the efficacy of water services for irrigation provided.
946,(Percent).
947,PDO 2: Improve the productivity of water on family farms in selected areas that are vulnerable to climate change.
948,5) Increase in agricultural water productivity on family farms in areas vulnerable to climate change42 (Percent).
949,6) Increase in efficiency of application of irrigation water on-farm in areas with ’technified’ irrigation (Percent).
950,Project Components 31.
951,"The proposed Project is a US$126.0 million Investment Project Financing (IPF) operation, financed by a US$100.0 million IBRD loan and US$26.0 million in counterpart funds."
952,The Project will be implemented over a five-year period.
953,Proposed interventions are grouped around the following three components: (i) Component A: Irrigation Investments for Climate Resilient Agriculture; (ii) Component B: Institutional Strengthening for Effective and Sustainable Irrigation Services; and (iii) Component C: Project Management and Interagency Coordination.43 32.
954,"Component A: Technified Irrigation Projects (US$ 106.7 million, of which US$89.5 million is financed by the IBRD)."
955,"Component A aims to improve water delivery services for irrigation and agricultural water productivity in 130 selected and prioritized subprojects covering a total of 8,014.38 hectares – involving 130 FGs (GGRTs)44 – and serving 7,767 producer households (thereby reaching an estimated total of 24,128 beneficiaries)."
956,"Each subproject represents a hydraulic block that consists, on average, of 60 ha of land and serves around 60 farmers."
957,Figure 1 below illustrates the main elements (points 1-10) of a hydraulic block.
958,The investments comprise improvements to existing irrigation schemes.
959,"Of the total, 73 percent of the subprojects are in the Sierra, 22 percent in the Costa, and 5 percent in the Selva."
960,120 subprojects are in climate-vulnerable areas.
961,This component is divided into the following three subcomponents supporting off-farm and on- farm irrigation infrastructure and TA to the administering FGs.45 33.
962,Subcomponent A.1.
963,Modernization of Communal (Off-Farm) Irrigation Systems.
964,This subcomponent aims to modernize existing off-farm irrigation schemes within designated hydraulic blocks by converting open canals to pressurized gravity-based piped46 networks in areas with natural slopes47 (refer to points 1-5 in Figure 1).
965,"Use of gravity naturally pressurizes water in the pipes without the need for energy use and reduces losses from evaporation and seepage from open canals (i.e., improving efficiency)."
966,"Such modernization of off-farm irrigation infrastructure, coupled with their enhanced management is expected to improve the reliability of water supply to farmers, facilitate diversification toward higher-value crops, and increase resilience to water supply variability exacerbated climate change."
967,"Activities under this subcomponent include: (i) construction of new and improvement of existing head water intake structures48 from the original source of water supply to the main derivation canals and on to loading chambers or storage reservoirs, from which water is conveyed to the existing off-farm delivery networks (main and distribution levels); (ii) grit removal works between the water intake and storage reservoir to remove impurities that water from a derivation canal may contain (which can clog lower level systems); (iii) construction of water main and distribution piped networks from 42 Water productivity refers to the ratio of yield (marketable portion) to water consumed by the crop plants, expressed in price (PEN) per cubic meter (PEN/m 3)."
968,"Water productivity can be assessed at the level of (i) total yields (biomass – kg/m3), (ii) marketable yields (kg/m3), and (iii) their market value (PEN)."
969,"43 Annex 2 presents additional project details, while Annex 3 displays a map with the intervention areas."
970,"44 These 130 sub-projects are within the jurisdiction of 43 Water User Boards (JUs) and 4 User Committees (which are not part of the Water User Boards), distributed across 19 regions, 56 provinces, and 87 districts."
971,"To date, the 130 sub-projects include 85 projects declared viable (past feasibility stage) and 45 projects at the concept level (technical assessment stage)."
972,45 FGs oversee the management of irrigated water from the water intake structure (point 1 in Figure 1) to the application of water on-farm (point 10).
973,"46 As part of a ‘technification’ process, the conveyance systems will be adapted from open canals to pressurized gravity-fed piped systems, which naturally pressurize the water by mere use of gravity and without the need for energy."
974,Piped systems are typically characterized by high water-use efficiencies due to negligible water losses from leaks/seepage and avoiding evaporation losses inherent to canals.
975,"47 Out of 130 subprojects, around 115 – 120 (around 88-92 percent) have the necessary topographic conditions for gravity-fed pressurized systems without the need for pumps powered by electricity produced from diesel."
976,The rest are expected to continue utilizing fossil fuels.
977,48 Head water intake structures are used for water withdrawal from the original source for delivery to an irrigation network.
978," 3 The World Bank Irrigation for Climate Resilient Agriculture (P179037) the intake structure up to the farm gates (outlets);49 (iv) development of feasibility studies, detailed designs, and environmental and social instruments to identify and manage risks; (v) monitoring and supervision of civil works; and (vi) implementation of the respective Environmental and Social Management Plan (ESMP), including reforestation50 activities to improve soil carbon storage, reduce erosion, and increase the overall long-term sustainability of the hydraulic blocks."
979,Subcomponent A.2.
980,Irrigation Technology Improvement (On-Farm Irrigation Systems).
981,This subcomponent aims to support farmers in increasing their agricultural water productivity by improving the efficiency of water applied to crops at the farm level through the installation of advanced on-farm irrigation systems.
982,Activities include the following interventions on existing on-farm irrigation systems: (i) construction and provision of water-efficient field application systems (e.g.
983,"drip irrigation, sprinklers, micro sprinklers), land leveling, lateral pipes, equipment for improved control and regulation of water flow, and flow rate measuring devices for improved monitoring; (ii) development of feasibility studies, detailed designs, and environmental and social instruments; (iii) monitoring and supervision of civil works; and (iv) implementation of the ESMP, including reforestation activities to improve soil moisture and environmental base flow, increase efficiency of sprinkler and micro-sprinkler systems, and increase the sustainability of the hydraulic blocks."
984,This subcomponent will be financed through a cost-sharing arrangement with farmers following the National “Technified” Irrigation Program (NTIP) guidelines.
985,Subcomponent A.3.
986,Technical Assistance and Capacity Building to FGs (GGRTs).
987,"This subcomponent aims to strengthen the capacity of FGs participating in subprojects under Subcomponents A.1 and A.2 to ensure the sustainability of the investments in their subprojects and increase water productivity in their hydraulic blocks through TA, capacity building, and knowledge sharing activities."
988,"The assistance will be centered on the following three main areas: (i) MOM of the irrigation systems in the respective hydraulic blocks; (ii) strengthening the capacities of the farmers; (iii) improving the productive and efficient use of natural resources at their disposal by adopting sustainable agronomic practices;51 and (vi) helping establish WUOs with a balanced representation and participation of female and male farmers to leverage economies of scale, strengthen commercial management, and connect with national and international markets.52 37."
989,"The combined investments in ‘technified’ irrigation systems, TA and capacity building as part of Component A are expected to increase farmers’ resilience to water variability caused by climate change and avoid significant decreases in crop yields.53 Adequate irrigation water delivery is critical for enabling farmers to cope with the climate-exacerbated occurrences of floods, droughts, and frost, to increase crop yields, and to grow higher value crops."
990,"Irrigation water application is especially effective when used in combination with agronomic practices that support healthy soils and their capacity to conserve moisture, thereby allowing for greater overall on-farm water use efficiency and productivity while building resilience to climate change (please see Annex 5 for more details)."
991,"In addition to building water security, the proposed Project is anticipated to improve the food security and livelihoods of the mostly agricultural rural areas of Peru."
992,The component is also expected to produce positive climate mitigation impacts.
993,An analysis calculating GHG mitigation potential of the Project concluded that an estimated 5.562 tons CO2-equivalent per year can be saved by the Project´s activities.
994,"In approximately 90 percent of the efficient off-farm irrigation systems, the Project’s will utilize natural topographic elevations for gravity-based, pressurized flow of water that eliminates the need for electricity or diesel to power water pumps."
995,"This is presumed to avoid GHG emissions by circumventing the need for energy generation using fossil fuels while providing highly efficient water conveyance, distribution, and delivery to farms."
996,"Additionally, the soil and 49 The networks will include energy-efficient hydro-mechanical equipment and smart measuring devices, with their design considering resilience against climate change-exacerbated floods and droughts."
997,50 1-2 percent of the land surrounding the 130 reservoirs is expected to be reforested.
998,"The main expected benefit is to help keep the soil structure intact, which helps maintain moisture content and thus reduce erosion."
999,51 Regenerative or conservation agriculture focuses on ensuring soil health to increase the efficiency of water application and retention of moisture in the soil.
1000,52 The latter will be done in alliance with main actors in the agrarian public sector.
1001,"These agrarian public sector institutions include INIA, SENASA, AGROIDEAS, Sierra- Selva Exportadora, AGROURURAL and other public and private entities."
1002,53 Improved irrigation can increase the yields of most crops by up to 100 percent as well as improve grazing land and pastures.
1003,"Source: ICR, PSI Sierra."
1004," 4 The World Bank Irrigation for Climate Resilient Agriculture (P179037) vegetation carbon stock will be increased due to the tree-planting activities as well as the use of vegetation cover and sustainable agronomic practices (e.g., climate smart, regenerative, conservation agriculture).54 No substantial changes in existing cropping patterns are expected, thereby not resulting in significant effect on GHG emissions."
1005,Figure 1: Schematic layout of a subproject associated with the off-farm sub-component (A1) and the on-farm sub-component (A2).
1006,"Component B: Other Initiatives: Institutional Strengthening for Effective and Sustainable Irrigation Services (US$6.7 million, of which US$6.0 million is financed by the IBRD)."
1007,"To complement Component A’s interventions at the hydraulic block level, this Component focuses on providing scaled-up support to improve water services for irrigation at the local (scheme level), and subnational (regional government), and national levels."
1008,Component B does not include any infrastructure works.
1009,"Instead, it aims to strengthen the capacity of WUOs (water user boards, commissions, and committees) as well as of subnational governments to strategically support the newly created FGs and extend access to ‘technified’ irrigation solutions throughout Peru."
1010,"Although the entry point to improving irrigated agriculture for individual farmers is through irrigation services, the multi-level character of this component ensures that water storage (including reservoirs), groundwater, and surface water management—key elements in adapting to climate change—are also considered at higher “governance” levels."
1011,"Correspondingly, this component is divided into the following two subcomponents."
1012,Subcomponent B.1.
1013,Strengthening WUOs for Improved Management of Reliable and Sustainable Water Services for Irrigation.
1014,"This subcomponent aims to support all participating WUOs55 in ensuring equitable, reliable, and timely distribution of water to the hydraulic blocks under Component A."
1015,"This subcomponent is designed to improve water management and administration by WUOs to mitigate climate-exacerbated floods, droughts, and frost in the WUOs’ areas of influence, promote adequate O&M of their hydraulic assets, and support efficient use of water for irrigation through 54 These practices will focus on sustainably increasing productivity and income while helping mitigate and adapt to climate change impacts through carbon sequestration and increasing the efficiency of water use on-farm."
1016,55 This includes commissions and committees from 43 Jus/GGRTs and 4 commissions that are not part of those JUs in Project areas.
1017, 5 The World Bank Irrigation for Climate Resilient Agriculture (P179037) water monitoring and accounting tools.
1018,Specific focus will be placed on capacity building to monitor the potential impact of increased absolute water use savings derived from improved water use efficiency upstream to help avoid any negative impact on downstream users by inadvertently reducing return flows.
1019,"Specific activities include: (i) updating and implementing key technical instruments, including water distribution plans, O&M plans, asset management plans; (ii) the installation of water control and measuring devices coupled with TA on water efficiency and accounting assessments; (iii) the implementation of demonstration parcels to promote the conversion to ‘technified’ irrigation systems among other FGs; and (iv) development of potential water tariff restructuring strategies following improvements in services."
1020,Climate-related aspects such as drought and flood early warning systems and data collection for improved water planning towards climate risks will be considered in the water distribution plans.
1021,Subcomponent B.2: TA to Subnational Governments for the Scaling Up of Improved Irrigation Investments.
1022,It aims to build the capacity of subnational governments to expand the use of ‘technified’ irrigation systems in the 19 regions where the 130 subprojects under Component A are located (see Map in Annex 3).
1023,Activities include: (i) capacity building in the management and administration of water resources for agricultural purposes; (ii) strengthening the ability of Regional Agrarian Departments (Dirección Regional de Agricultura [DRA]) and Planning Directorates (Dirección de Planificación) of subnational governments to carry out the O&M of ‘technified’ irrigation systems; (iii) strengthen capacities for the planning and management of regional ‘technified’ irrigation.56 43.
1024,"To contribute to the achievement of a sustainable nexus between water resources management and sustained or increased agricultural productivity in new investments (scale-up), this subcomponent will consider specific measures to assist in: (i) the consideration of integrated water storage solutions and comprehensive water resources planning at the watershed level; (ii) the presentation of an irrigation smart subsidy program that focuses on small farmers in an effort to provide incentives for the adoption of ‘technified’ on-farm irrigation systems and water management practices that conserve soil moisture and reduce polluting effects of crop cultivation; and (iii) improving resilience-based planning with the use of hydro-agro informatics, generated by MIDAGRI's information systems that will allow performance or impact assessments of irrigation and agricultural systems in targeted sub-watersheds, also informing O&M irrigation assets."
1025,"The Project aligns itself with MIDAGRI´s sectoral policies, management and expenditure planning instruments, investment plan and budget program, and will provide lessons learned for their updating."
1026,"This includes a close collaboration between the Project and respective sector entities to incorporate lessons learned from the Project’s implementation into the following activities:57 (i) updating of irrigation policies to strengthen, among others, the integration of Water Resources Management at basin level as part of the scaling up of ‘technified’ irrigation; redesigning of Budget Program PP0042 to update its operational model and indicators of with a focus on integrality and complementarity at the basin level; (iii) the improvement of a geographic information system, which MIDAGRI is currently developing."
1027,"The latter will be attained through the integration of data on water resources, the use of agricultural land and its characteristics, including the phenomena of floods and extreme droughts aggravated by climate change, in a single center for managing such knowledge so that it allows adequate planning of irrigation and ‘technified’ irrigation that can be used by the Project."
1028,It is expected that this system will be ready for use at the beginning of the third year of project implementation and will contribute to a renewed policy framework to be elaborated in cooperation between MIDAGRI and ANA.
1029,"Component C: Project Management and Interagency Coordination (US$12.6 million, of which US$4.5 million financed by the IBRD)."
1030,This component includes activities to support the administration of the Project and the strengthening of the PSI – the PIU.
1031,"The component will support capacity building on financial, environmental, social, and 56 These activities assist with strengthening the capacity for the regional and local governments to prepare and manage investments."
1032,"A 2020 report from PSI shows the lag in project implementation at the Regional and Local governments, where it was reported that only 20 percent of the programmed investment was executed (Inversiones en Riego Tecnificado Parcelario 2012/2019."
1033,"PSI, Lima, 2020)."
1034,"Since most of them have sufficient financial resources at their disposal, lack of capacity to prepare and implement the investments was suggested as the cause in the report."
1035,57 These activities will not be financed with loan proceeds of the Project.
1036, 6 The World Bank Irrigation for Climate Resilient Agriculture (P179037) technical management as well as M&E.
1037,"In addition, this component will include activities to promote coordination between Project and existing government entities (e.g., ANA), other government programs (such as Sierra-Selva Exportadora, AGROIDEAS, AGRORURAL, etc."
1038,"), and programs that involve NGOs, farmers associations, and universities."
1039,Selection criteria and draft templates for the corresponding cooperation arrangements between the Project and ongoing programs will be detailed in the Project Operation Manual.
1040,C. Project Beneficiaries 46.
1041,"The Project will directly benefit 130 FGs serving 7,767 farmer families cultivating 8,014.38 hectares (with the total number of beneficiaries is estimated at 24,128 persons) with improved irrigation systems and relevant capacity building."
1042,"Project activities are expected to strengthen the resilience of farmers’ agricultural operations to climate change- exacerbated risks and promote opportunities for greater economic gain.58 In addition to exposure to climatic risks, most of these beneficiaries currently live in poverty and face significant challenges to their livelihoods and well-being.59 47."
1043,"The Project will include capacity building and TA that will benefit a total of 180 WUOs60 (encompassing water user boards, commissions, and committees), 19 regional governments, and the national government."
1044,"The Project’s efforts to strengthen irrigation strategies at the regional and national levels, which will foster the extension of efficient irrigation solutions, are also expected to generate future benefits for residents living outside of the Project’s target areas."
1045,Many of these benefits will only be accrued after the closure of the Project.
1046,D. Results Chain 48.
1047,"The success of the improved irrigated water services (PDO1) directly contributes to the success of the improved agricultural water use productivity (PDO2), since without adequate provision of irrigated water, the on-farm investments would be rendered ineffective."
1048,"‘Technified’ irrigation systems and agronomic management will help farmers increase their resilience to climate-exacerbated floods, droughts, and frost by producing more crops with less water (including a second or third harvesting cycle), thereby reducing the impact of droughts and lessening the risk of over- watering during floods."
1049,Improved irrigation technologies (subcomponent A.2) will allow farmers to utilize the improved availability of irrigation water service delivery more effectively.
1050,"The improvement of irrigation schemes is expected to enable optimal usage of water (according to crop water requirements61) and of other agricultural inputs and practices, thereby potentially facilitating increases in cropping intensity and changing of cropping patterns toward higher-value crops (in nutritional content and monetary value)."
1051,"These investments are accompanied by technical assistance and capacity building to FGs (subcomponent A.3) and WUOs (subcomponent B.1), which are expected to allow for better management of water resources and investments in technified irrigation."
1052,"As a result, farmers will increase their capacity to improve their production during the dry season, build their resilience to various climatic phenomena such as droughts, rising temperatures, and frost, and improve their incomes and livelihoods."
1053,The projects Theory of Change (ToC) is shown below.
1054,The Project’s critical assumptions include: (i) adequate availability of water for the irrigation schemes; (ii) that the TA activities will result in significant uptake by farmers in terms of utilizing irrigation schemes correctly and increasing their focus on productivity; (iii) that local contractors (construction and TA) will have sufficient technical capacity; and (iv) that counterpart funds from farmers will materialize.
1055,"58 Peru: Perfil Sociodemográfico, Instituto Nac."
1056,"de Estadística e Informática (INEI), 2017 lists the average number of household members in rural areas as 3.2."
1057,"59 The average Human Development Index (HDI) in the Project area is 0.579, considerably below the national average of 0.777."
1058,60 180 WUOs are distributed as follows: (a) 130 WUOs (Commissions and Committees) are directly linked to the 130 Farmer Groups (FGs) or GGRTs benefitting from technical irrigation projects; and (b) the 43 JUs that cover the 130 technical irrigation projects.
1059,"61 Crop water requirement (CWR) is defined as the depth of water in millimeters needed for the crop’s consumption through evapotranspiration (ET ) as c influenced by its growth stages, environmental conditions, and crop management)."
1060,A water deficit may be experienced where precipitation is lower than crop ET requirement.
1061, 7 The World Bank Irrigation for Climate Resilient Agriculture (P179037) 52.
1062,"The theory of change is aligned to the World Bank’s corporate commitments on climate change, gender, and citizen-engagement."
1063,"The shift from using diesel/electric pumps (where applicable) to gravity-fed pressurized systems, as well as the cumulative impact of the improved irrigation systems will reduce GHG emissions in the long-term."
1064,"On gender, the Project includes a series of direct actions to increase productivity and economic results for female farmers as well as to increase the representation of women in decision making positions in WUOs."
1065,"Regarding citizen engagement, the Project includes a variety of mechanisms to ensure that beneficiaries are consulted throughout the project cycle as well as a PDO- level indicator to track beneficiaries’ satisfaction."
1066,"Project ac vi es utputs utcomes Long Term impacts Increase O farm irriga onsystemsresilientof opera onal Increased ompA.1 Construc on and or improvement droughtsand heavy precipitaci n e ciency in Farmers ´resi of climateresiliento farm irriga onsystem constructedand or improvedand hydraulicblocks lience to opera onal climate Each GORE has at Improve changeand least, 500 ha of sustainabilityof climate techni ed waterirriga on variability ompB."
1067,TA for subna onal governments Regional Investment programs for irriga on services LowerG G for scalability of improve irriga on technologies approved at the regional level irrigaitonprojects itsmul anual Increase emissions.
1068,investments Improved investment yields por olios.
1069,Increase farmers´livel diversi ca ihoods ompB.1 Strentheningof WUOs for the WUOs applywaterdistribu onplan and on (incl.
1070,igherand managementtoolstoimprovethe deliveryof Increase of tari more stable managementof reliableand sustainable ighervalue waterirriga onservices collec on rate farm income irriga onwaterservices crops) Intensi ca Increase on Improvee cacy of Expansionof sa sfac on with Increased waterirriga on improved the e cacy of the capacityto services irrga on waterservices.
1071,pay for ompA.
1072,Construc onof techni ed on Farmershaveimprovedagricultural services .
1073,"water farm irriga onsystemsthatareresilientto technology, increasing watere ciency in Increasee ciency Improve droughts , oods and heavyprecipita on."
1074,drought prone areasat the farm level of applica onof agriculturalwater irriga onw ter produc vityon on farm family farms in ompA.
1075,"Supportservicesto farmers, Financially ensuringthe inclusi n of female farmersfor FGsimplementO M plansand agricultural selectedareasthat sustainable Increasein are vulnerable to on farm irriga on , andto promote business plan irriga on agriculturalw ater climatechange agriculturalproduc vityandvaluechain services produc vity."
1076,development .
1077,Figure 2: Theory of Change.
1078,E. Rationale for Bank Involvement and Role of Partners 53.
1079,"The Bank is a key and long-standing partner for Peru's water and agriculture sectors and brings global knowledge, technical expertise, and innovative approaches to this proposed investment Project."
1080,"In particular, the Bank team will share global knowledge on topics related to modernization of irrigation systems, governance, usage of regenerative agricultural practices, and improved monitoring of water usage through water accounting methods."
1081,The Bank's experience in supporting the implementation of the Sierra Irrigation Subsector Project has provided the Project’s task team with concrete lessons and specific guidance on how to improve its support under this proposed Project.
1082,"In addition, the Water Security Diagnostic for Peru62 has provided the Bank team with detailed information and findings on the nexus between water security and irrigation in Peru that will help the team provide value beyond the immediate scope of the Project."
1083,"The Bank will also help ensure that the Project maintains a strong focus on citizen engagement, gender, as well as climate change."
1084,F. Lessons Learned and Reflected in the Project Design 55.
1085,"The Project design builds on the lessons generated from the successful implementation of the Sierra Irrigation Subsector Project (P104760), the Sierra Rural Development Project (P079165), and by the recently completed Peru Water Security Diagnostic (WSD) report (World Bank, 2022)."
1086,The project extended access of farmers to efficient irrigation 62 World Bank.
1087,Peru: Strategic Actions Toward Water Security.
1088,Water Security Diagnostic.
1089,"Washington, DC: World Bank."
1090, 8 The World Bank Irrigation for Climate Resilient Agriculture (P179037) systems in the Sierra and facilitated their access to training and TA.
1091,"The WSD identified the need to prioritize the upgrade and expansion of efficient irrigation and drainage systems, especially for small and medium-sized family farms in areas with high seasonal water variability."
1092,"To maximize on the impact and sustainability of the Project, technification of collective irrigation schemes as well as on farm are integrated within the same territory of a hydraulic unit (subproject) associating the irrigation modernization with WUOs."
1093,"This way, sub-projects attend to an entire system from the intake structure, conveyance, and distribution systems to the field application systems."
1094,This approach learned from the Sierra Irrigation Subsector Project (P104760) is expected to have a greater impact and allow for more effective irrigation services improvement.
1095,The Sierra projects showed that projects aiming to improve small-scale farmers’ production and commercial orientation should encourage beneficiary engagement and build capacity among organizations such as FGs.
1096,The experience with the implementation of sub-projects within the Sierra Rural Development Project (P079165) pointed to the success of such a model and was integrated into the proposed Project.
1097,"These sub-projects were organized either in communities or in organizations composed of small-scale producers and played a critical role in identifying, preparing, and carrying out the subprojects."
1098,"For most beneficiaries, the opportunity to carry out subprojects on their own was a novel and intensive learning experience."
1099,"These grassroots organizations exceeded their achievement of goals set, showing that by working in the interest of farmer groups and their families, organized producers take the lead and assume the responsibility for planned activities."
1100,"This was later replicated under the Sierra Irrigation Subsector Project (P104760), where WUOs/FGs participated in the selection, design, execution of subprojects."
1101,"Based on these past experiences, farmer groups (FGs) were formalized under PSI for the proposed Project to further foster collective capabilities and actions."
1102,Both Sierra projects demonstrated that training and TA interventions are necessary for the technical sustainability of investments into irrigation infrastructure and to improve irrigation management.
1103,"By extending access to training and TA, these past projects demonstrated the effectiveness of capacity building on poverty reduction for rural populations."
1104,"Based on the lessons learned, the proposed Project aims to work with FGs to increase the technical sustainability of the investments in the medium and long term, including ensuring the funds for the maintenance and replacement of irrigation equipment and materials."
1105,"Additionally, recognizing the important role women hold in agriculture, the Sierra Irrigation Subsector Project (P104760) developed training tailored to women’s specific needs and effectively increased female participation in the management of WUOs, which will be replicated in the proposed Project."
1106,Gender gaps will be addressed by the proposed Project to increase engagement of female irrigation users in project activities.
1107,A Social and Gender Assessment (SGA) was completed as part of the preparation of the proposed Project and a Gender Action Plan is expected to be completed by PSI with measures to promoting the meaningful engagement of female beneficiaries.
1108,Both previous Sierra projects showed that there is still potential for improvement in promoting gender equity in the sector despite progress made.
1109,"As part of the Sierra Irrigation Subsector Project (P104760) efforts were made to empower poor rural women to participate in decision making within water user boards, which resulted in significant level of women’s participation.63 The Sierra Rural Development Project (P079165) also showed that efforts to include female beneficiaries64 and encouraging their participation leads to positive outcomes."
1110,"Over the 9 years of implementation, 39 percent of the project’s beneficiaries were women (34,053 of a total 87,723 beneficiaries)."
1111,"The share of women taking the lead in implementing subprojects was also significant, with the steering committees of 36 percent of subprojects having female members."
1112,"Moreover, evaluation processes played an important role in improving inclusiveness.65 63 Gender-disaggregated data were collected throughout the implementation of the Sierra Irrigation Subsector Project (P104760)."
1113,"The data show that a total of 2,117 women received training through the Project, accounting for 22.3 percent of the total population of beneficiaries."
1114,"Of these, 914 were from indigenous communities."
1115,"Moreover, women benefiting from training and technical assistance accounted for 34 percent of the total."
1116,64 Female beneficiaries were defined as households formally represented by women in the subprojects.
1117,65 A beneficiary survey under the Sierra Rural Development Project (P079165) determined that to improve female participation found that providing women with special training to be the most popular recommendation (made by 58 percent of interviewees); the second most popular recommendation (45 percent of beneficiaries) was to educate husbands about the importance of women’s economic contribution.
1118, 9 The World Bank Irrigation for Climate Resilient Agriculture (P179037) 60.
1119,"The proposed Project incorporates strengthened training plans in cultivation processes of crops, such as good agricultural practices and integrated management of pests and diseases ."
1120,A portion of the TA provided to producers (through FGs/GGRTs) through demonstration plots as part of the Project includes (i) improving the efficiency of water management at the parcel level and (ii) agronomic management for both annual and perennial crops.
1121,"Agronomic management through incorporation of climate smart and regenerative practices will allow for greater efficiency in the overall water management in the sub-projects (lowering the need for irrigation water by conserving soil moisture), resulting in greater yields, lower chemical inputs of fertilizers and pesticides, and, thus, lower impacts on ecosystems."
1122,This is based on the successes under the two previous Sierra projects (P104760 and P079165) of providing group-centered TA to beneficiaries for increasing the productive capacity of individual households and promoting the application of adequate agronomic practices for the overall performance and sustainability of agricultural production under irrigation.
1123,"Based on the experience from the Sierra Irrigation Subsector Project, the Project will adopt a watershed management perspective wherever possible.66 The proposed Project recognizes the importance of considering downstream impacts of increasing irrigation efficiency upstream."
1124,This relates to the well-known challenge of a reduction in water available to downstream water users through reduced return flows from increases in water use efficiency in irrigation schemes upstream.
1125,"A reduction in water return flow, previously lost via leaks in irrigation schemes (e.g., through percolation into the soil and surface runoff), may negatively impact downstream water users since, on a net-basis, inflows to their systems are reduced."
1126,"While previously, the “lost” water might have functioned as an inflow to the water source downstream, this process could be undermined when “freed-up” water in the upstream system is potentially repurposed for additional irrigation water, either by expanding irrigated areas or by growing crops with a higher water consumption."
1127,"Especially in water stressed and drought-prone areas, this can cause downstream communities to be worse off due to a Project intervention upstream."
1128,"To quantify the severity and magnitude of this challenge for the Project´s proposed subprojects, an analysis was carried out to quantify the potential water savings from increases in water use efficiency without negatively impacting downstream water users."
1129,"The results of this analysis, carried out for a sample of eight subprojects, show a high variation in potential water savings from increased water use efficiency, ranging between 7 and 58 percent."
1130,"To put these figures into context, it is important to consider the water balance in the respective watershed to understand the potential impact of the environmental return flow of one single subproject with an average of 60 hectares."
1131,"To the extent feasible, the Project will therefore consider estimating a water balance in the affected watershed(s) to understand the potential impact on the environmental return flow While disaggregated data on the respective local watersheds is not widely available, the Project will utilize the TA under Component B to coordinate with WUOs as well as ANA and its local entities, such as the Local Water Authorities (ALAs)67 to identify pilot subprojects to carry out further analysis on the impact of increased water use efficiency."
1132,IMPLEMENTATION ARRANGEMENTS A.
1133,Institutional and Implementation Arrangements 63.
1134,The PSI will be responsible for the overall implementation of the Project.
1135,"Since its inception in 1997, PSI has carried out 680 technical irrigation projects that have benefited 10,497 farmers nationwide (PSI, 2017)."
1136,"The PSI to implement an irrigation program along the Costa that had the objective of improving the existing irrigation infrastructure, promoting efficient irrigation, and providing training to WUOs."
1137,"In 2006, the PSI was designated as the governing entity of the irrigation subsector at the national level to encourage and promote the efficient and sustainable use of irrigation water."
1138,"66 The SierraIrrigation Subsector Project determined that from a water scarcity risk management perspective, it is important to consider activities to conserve water sources in the upper parts of the micro watersheds."
1139,67 Local water administration units (Administración Local del Agua [ALA]) are the local offices of ANA.
1140, 0 The World Bank Irrigation for Climate Resilient Agriculture (P179037) 64.
1141,The PSI currently works nationwide through its seven regional offices68 on the implementation of irrigation projects.
1142,"The PSI is headquartered in Lima and has departments focused on: (i) administration and financing; (ii) infrastructure; (iii) irrigation management; and (iv) planning, budgeting and M&E."
1143,Annex 3 includes the PSI organizational chart.
1144,"The PSI will accompany the farmers in each of the stages, coordinating with MIDAGRI, ANA and its deconcentrated entities, regional and local governments, and the private sector."
1145,The PSI has successfully implemented investment projects with development institutions for many years.
1146,"These engagements include the World Bank Sierra Project, which closed in 2017."
1147,"The Implementation Completion and Results Report (ICR) rated the Project's overall outcome, the Project's implementation, and the implementation agency performance as satisfactory."
1148,"The PSI also holds extensive experience implementing projects supported by Peru's national investment program (Sistema Nacional de Programación Multianual y Gestión de Inversiones - InviertePE), the Inter- American Development Bank (IADB), the Agency for Japan International Cooperation (JICA), and the Global Environment Facility (GEF)."
1149,The Borrower proposed designating the PSI as the implementing agency given its local presence and experience with Bank-financed projects.
1150,"The Bank team rates the PSI's current capacity (including technical, environmental, social, financial management (FM), and procurement) to implement the Project as moderate."
1151,"Given the geographic scope and overall scale of the Project, it is likely that additional resources will be needed to support the PSI during implementation."
1152,The Project design calls for interaction and coordination among different agencies.
1153,"The Project will require the active participation of FGs, WUOs, local and regional governments, and ANA."
1154,"Specifically, the Project will support the involvement of the ALAs to strengthen the continuous monitoring of Project interventions, water consumption, related system parameters, and enforcement of effective regulatory instruments to manage water use."
1155,"In addition, the Project will coordinate with MIDAGRI's ongoing rural programs (AGROIDEAS, AGRORURAL, and Sierra-Selva Exportadora) and the INIA to provide specific thematic support as needed."
1156,Governance and institutional related activities under Component B will require strong collaboration between several of MIDAGRI's offices and ANA.
1157,"Given the need for strong coordination among various agencies, MIDAGRI, with the support of the Ministry of Finance (MEF), will create a Project Steering Committee to provide high-level guidance, oversight, and control of the Project as well as inter-institutional agreements with key agencies (i.e., ANA)."
1158,"The Steering Committee does not participate in the functions or activities that correspond to the execution of the Project, which are the responsibility of the PSI."
1159,Results Monitoring and Evaluation Arrangements 69.
1160,"Project monitoring will be carried out regularly, and will include physical and financial progress, intermediate outcomes and development results, compliance with safeguards policies and fiduciary regulations ."
1161,The results framework (RF) will be used to monitor and evaluate achievement of the PDO and outcomes.
1162,"The PSI, as the Project’s implementation Unit (PIU), will be responsible for organizing and merging the data coming from different areas of the Project to track the advancement of the work against the indictors detailed in the RF ."
1163,"The PIU will have a supervision specialist who will carry out the supervision, follow-up, and M&E of progress."
1164,The specialist will evaluate progress based on technical reports from the field as well as field supervision visits.
1165,"The supervision specialist will make recommendations to ensure achievement of the objective, goals and expected results."
1166,The specialist will prepare periodic progress and results reports that will be sent to key stakeholders.
1167,"At the regional level, for Component B, specialists hired to carry out training and TA to the FGs and WUOs will submit technical reports and verification, such as lists and records of the events carried out, of the implementation of 68 The seven regional implementation offices cover the following Project regions: (i) Piura and Tumbes, (ii) Lambayeque, Amazona, and Cajamarca, (iii) La Libertad and San Martin, (iv) Junin, Huancavelica, Huanuco, Ayacucho, and Pasco, (v) Arequipa, Moquegua, Tacna, and Puno, (vi) Cusco and Apurimac, and (vii) Ancash."
1168,The Lima and Ica regions do not have a PSI office and are they served from the PSI headquarters.
1169,The regions of Tumbes and Pasco are not part of the Project areas.
1170, 1 The World Bank Irrigation for Climate Resilient Agriculture (P179037) activities.
1171,"The reports will be uploaded to an evaluation and monitoring system that will allow for the follow-up, control and systematization of training and TA events."
1172,"For Component A, periodic progress evaluation meetings (quarterly, semi- annual, and annual) will be carried out with all the entities involved in these activities, including GORES, local governments, FGs, and WUOs, among others."
1173,"When it comes to infrastructure works, the contractors engaged will be responsible for generating the data on various civil works-specific intermediate indicators, while the supervision firm will be responsible for the analysis of the data provided."
1174,"Project reports will be prepared and submitted to the World Bank on a bi-annual basis, no later than 45 days after completion of the semester."
1175,"The report will cover: (i) the progress of each component, implementation of key features of the environmental management plan, key performance indicators, details of operation of Project facilities, and financial statements; and (ii) the annual work plan for implementation, annual funds required for implementation, an updated disbursement profile, planned actions for mitigating negative effects during construction, and target indicators for the coming year."
1176,A mid-term review (MTR) of the Project will be carried out by the Borrower and the World Bank.
1177,The Borrower will submit its own MTR report no later than two months before the MTR and an implementation completion report to the World Bank no later than two months after the closing date of the Project.
1178,ESF compliance will involve monitoring compliance with environmental and social safeguards policies as detailed in the environment and social safeguards instruments.
1179,"To establish an approximate baseline for the results indicators, a beneficiary satisfaction survey was carried out in February 2023, generating responses from 325 out of 7,767 beneficiary families (representing 4 percent of all beneficiaries), across 93 out of 130 subproject locations (72 percent of all participating FG)."
1180,"While this survey will not replace the rigorous data collection that will be carried out for each subproject, the sample size can be considered representative, offering results to determine a valid baseline for the targets established in the results framework."
1181,C. Sustainability 76.
1182,The Project design includes extensive capacity building at the FG and WUO level to ensure that the off-farm and on-farm irrigation systems are managed in a sustainable manner.
1183,"The Project’s combination of hard and soft investments also builds sustainability from a financial perspective; the FGs’ access to irrigated agriculture will permit more reliable production of higher value crops, and the development and implementation of business plans will encourage strategic planning to successfully connect with national and international markets."
1184,"The FGs’ increased income will increase their capacity to pay for the WUO’s irrigated water services (this will be amplified by greater willingness to pay given the Project’s investments to improve service), building the financial sustainability of the WUOs’ operations as well."
1185,The Project’s investments also build sustainability from a resource perspective given the focus on efficient water use.
1186,"The efficient irrigation systems developed under the Project will build the capacity of FGs to produce crops utilizing less water, increasing the FGs’ resilience to droughts and other climate change-induced events, and are projected to improve the system’s resilience against water stress and climate-induced disasters such as droughts by reducing average water deficits from -34 percent to zero."
1187,"Finally, the Project’s investments at the subnational and national level promote the scaling up of investments and the strengthening of sector strategies that will build their institutional capacity to provide support to FGs and WUOs after the closing of the Project."
1188,PROJECT APPRAISAL SUMMARY A.
1189,"Technical, Economic and Financial Analysis Technical Analysis  2 The World Bank Irrigation for Climate Resilient Agriculture (P179037) 79."
1190,"Component A aims to improve water services for irrigation and agricultural water productivity in 130 selected subprojects with a total of 8,014.38 hectares, benefitting 130 FGs."
1191,"This component is divided into three subcomponents: (i) construction and improvement of off-farm irrigation systems; (ii) construction of on-farm, efficient irrigation systems; and (iii) TA and capacity building for the user organization."
1192,"The portfolio distribution places 73 percent of subprojects in the Sierra, 22 percent in the Costa, and 5 percent in the Selva regions."
1193,"The subprojects’ level of readiness was rated based on whether preliminary studies, feasibility s tudies, and detailed engineering designs are available."
1194,"Currently, out of the 130 subprojects, 18 subprojects have detailed designs (Expediente Técnico), 5 have advanced feasibility studies (Ficha Técnica), 36 subprojects are at the level of feasibility study, 35 are at the level of preliminary design plus feasibility study, and 36 are at the level of preliminary design."
1195,"Out of the first 18 subprojects with detailed designs, a representative sample group of 5 subproject proposals was reviewed during preparation and deemed acceptable from a technical point of view."
1196,These 5 subprojects comprise different regions and different on-farm irrigation technologies.
1197,"From an infrastructure quality perspective, the subprojects with detailed designs are considered as suitable to be procured under a lump sum contract, considering that the designs, technical and graphic information, technical specifications, desegregated quantities, and itemization of the offer are well detailed."
1198,Feasibility studies (Ficha Técnica) 81.
1199,The Bank reviewed the information provided for the Yocara-Puno subproject as part of the group of 5 subprojects prepared at the level of feasibility studies.
1200,"The study utilized information related to all relevant technical, economic, and financial characteristics and provides a sound rationale for the expected benefits, in line with the Project’s objective."
1201,"In summary, the Project's immediate benefits are also expected to extend beyond the Project's targeted area in the long-term given the Project's support for the preparation and implementation of a portfolio of efficient irrigation projects with regional and local governments and the strengthening of national policies for efficient irrigation and water resource management."
1202,"Project costs include capital investment costs, O&M costs of the irrigation systems, and crop production costs (inputs and labor costs)."
1203,Economic and Financial Analysis69 83.
1204,"The Project's immediate benefits are tied to the increase in productivity associated with the provision of efficient irrigation systems on over 8,014.38 hectares of agricultural land."
1205,"With access to efficient irrigation systems and sustainable agronomic practices (known as climate smart, regenerative, and conservation agriculture) farmers are expected to utilize water more efficiently and better withstand climatic stresses (e.g., droughts, erratic rainfall patterns, frost)."
1206,"Additionally, it is expected that farmers will be able to grow higher-value crops, reduce labor costs, and thereby increase their incomes while ensuring food security."
1207,The quantifiable Project benefits are linked mainly to the additional income of producers that are impacted by the sub-projects (Component A).
1208,Methodology used for the financial and economic (EFA) analysis.
1209,"For the purposes of the analysis, eight sub-projects that are considered representative of all sub-projects under the Project were analyzed."
1210,A standard cost-benefit analysis (CBA)70 was performed with a 20-year horizon to assess the financial and economic merit of the Project by quantifying all incremental costs and benefits directly attributed to the Project.
1211,Financial and economic benefits were assessed for important agricultural crops with the potential for the development of value chains.
1212,"Moreover, as part of the elaboration of each subproject design, the PSI will carry out a CBA for each of the 130 subprojects during implementation."
1213,"As part of the economic and financial analysis, each of the sample subprojects considered 8 crops under their production schemes.71 These eight crops comprise the cropping systems that will be improved through the Project’s implementation and will determine the financial profitability of each subproject."
1214,"For each crop, a productive on-farm 69 For additional details on the economic and financial analysis, please see the corresponding Annex."
1215,70 A cost-benefit analysis will be carried out for each subproject as part of the feasibility studies as per national investment guidelines.
1216,"71 Crops included potato, purple maize, peas (vetch), rye grass, oats, clover, oregano, and grapes."
1217, 3 The World Bank Irrigation for Climate Resilient Agriculture (P179037) model was developed based on the information provided by the PSI to represent the ‘with’ and ‘without project’ scenarios.
1218,"The model calculates incremental net benefits over a period of 20 years, holding constant the input and output prices to capture the effect of the change in production."
1219,Existing crop production techniques were assumed to be replaced by the introduction of sustainable and sustainable on-farm agricultural practices72 in the Project areas.
1220,"In the ‘with project’ scenario, it is assumed that the investment will enhance the efficient use of natural resources through the introduction of technologies and agronomic practices that reduce or improve use of external inputs."
1221,"With this, it is assumed that the level of inputs (fertilizers, herbicides, and pesticides) needed will decrease by 5 percent."
1222,"Also, a water fee per hectare per year is considered in the models for the O&M of irrigation systems."
1223,Economic Analysis 87.
1224,"The economic analysis shows positive profitability indicators, with economic internal rates of return (EIRR) 73 between 13.2 percent to 21.6 percent."
1225,"For a 20-year horizon, the incremental economic benefit for the entire Project is estimated to be US$60.6 million, with an EIRR of 17.2 percent."
1226,"The flow of annual incremental net benefits calculated over a 20-year period, considered an economic discount rate74 of 8 percent that is compatible with the maturation time of principal investments."
1227,The economic analysis was applied to a sample of eight representative sub-projects (under of Component A).
1228,"The CBA assessed the economic viability of the production models proposed by the Project, considering economic prices (shadow prices)75 and economic value of carbon."
1229,"For the general economic analysis of the Project, economic flows were extrapolated."
1230,Benefits across the total Project area were extrapolated from the cropping composition and relative size of each of the eight subprojects.
1231,"76 The total cost of the Project is estimated at US$126.0 million.77 For a 20-year horizon, the incremental economic benefit for the entire Project is estimated to be US$60.6 million (representing the net present value [NPV]78 of agricultural production, with an EIRR of 17.2 percent."
1232,"To ensure the long-term robustness of the economic behavior of the Project, a sensitivity analysis was performed to evaluate how the economic indicators of the overall Project change with: (i) reductions in yields; (ii) delays in benefit generation; (iii) cost overruns; and (iv) changes in the shadow price of carbon."
1233,"The results of the sensitivity analysis showed the Project’s overall NPV still presenting a positive economic return even when considering a delay in the generation of benefits of 3 years, a significant cost overrun, or a 5 percent reduction of expected benefits."
1234,This points to the robustness of the Project.
1235,"In addition to the Bank’s economic assessment, the PSI prepared an economic evaluation to comply with Peru’s public investment system, InviertePE."
1236,"The evaluation models profitability indicators based on the expected effects of the Project on the yields, the incremental investment costs, and O&M costs."
1237,The analysis considers an evaluation horizon of 72 Including agricultural practices that enable the sustainable use and safeguarding of natural resources needed for improved water use efficiency and productivity.
1238,73 The economic internal rate of return (EIRR) produced by a CBA compares the economic costs and benefits of a project and provides information about the real yield of a long capital investment.
1239,74 Discounting expresses future costs and benefits at today’s equivalent value to account for inflation and risk.
1240,The applied discount rate corresponds to InviertePE.
1241,75 Shadow prices are utilized to quantify non-market costs and benefits.
1242,Shadow prices assume that all resources in the economy were optimally allocated and reflect the true social and economic value to society of the goods and services that the project utilizes to generate its benefits.
1243,"76 Net incremental benefits were summed across each of the production models, and then multiplied by a scaling factor, defined as the share of the total project area that these subprojects represent."
1244,"The subprojects cover a total of 5.19 percent of the total Project area (8,014.38 has), and the scaling factor is therefore 19.27."
1245,"77 After concluding the EFA, the total project cost changed from US$130.7 million to US$126.0 million."
1246,This does not have a significant impact on the EFA and does not change the results at the level of precision (one tenth of one percent) presented.
1247,78 NPV is used to evaluate the value of an investment based on the difference between the present value of cash inflows and outflows expected to be generated over the lifespan of a proposed project.
1248,"NPV represents the difference between the present value of cash inflows - expected (quantified) benefits - and of cash outflows - costs (of planning, preparation, and implementation) over a specified period."
1249, 4 The World Bank Irrigation for Climate Resilient Agriculture (P179037) 10 years and a social discount rate of 8 percent; it applies factors to convert financial prices to social prices of the inputs and outputs.
1250,The analysis results in a NPV at social prices of US$13.8 million and a social IRR of 11.35 percent for the entire Project.
1251,"Moreover, incremental economic benefits from the reduction of emissions and carbon sequestration over a 20- year period were included in the analysis."
1252,"A constant shadow price of US$7.17 per ton of CO2.79 Over the Project duration of 20 years, the Project is expected to lead to a net carbon reduction of 111,258 tons of CO2-eqivalent (tCO2-eq)."
1253,"The Project is also expected to provide a reduction of 5,562 tCO2-eq per year (see Annex 6 and 7 on Climate Change Co- benefits and alignment with the Paris Agreement)."
1254,Financial Analysis 92.
1255,"Financial viability was determined as positive for the eight subprojects, with financial internal rate of return (FIRR)80 between 12.7 percent and 25.2 percent."
1256,"A CBA was applied to eight representative sub-projects of Component A, for which the flow of annual incremental net benefits over a period of 20 years was calculated (considering a financial discount rate of 12 percent),81 holding constant the input and output prices to capture the effect of the change in production."
1257,The Project’s financial viability was examined to ensure the sustainability of the infrastructure works.
1258,"The financial situation (and cost recovery) of the FGs and WUOs in the Project area, irrigation tariffs’ collection, administering of water rights (if applicable), and other revenue sources were evaluated."
1259,"The financial situation (and cost recovery) of the FGs and other WUOs in the Project area, irrigation tariffs’ collection, administering of water rights (if applicable), and other revenue sources was also evaluated.82 94."
1260,"A financial analysis of WUOs revealed that the WUOs have struggled to achieve financial sustainability due to, among others, low water tariffs and collection rates."
1261,"According to a diagnostic of the WUOs,83 62.5 percent of WUOs has an operating cost recovery ratio lower than 50 percent, and 12.5 percent lower than 75 percent."
1262,"On top of this, the revenue collection rate is between 70 to 90 percent (Costa shows better rates of 80 to 90 percent, while Sierra and Selva show rates of 70 to 80 percent)."
1263,Implementation approach 95.
1264,"The Project’s implementation approach is informed by lessons learned from the Sierra Project, reflects good practices and is logically sound."
1265,The success of the Project’s investments hinges on having a strategic implementation approach given the large number of subprojects and wide territorial expanse.
1266,The 130 subprojects under Component A extend across Peru’s territory.
1267,The subprojects are in 19 of the Project’s 24 departments and distributed across Peru’s geographical zones as indicated in Annex 2.
1268,"The regions with the highest quantity of subprojects are Cusco, Cajamarca, Lima, Arequipa, Ayacucho, Huancavelica, and Piura."
1269,"Given the broad territorial reach, the experience executing similar projects, and the level of Project readiness, the PSI will implement the Project in four phases over a period of 5 years."
1270,"To group the subprojects into phases, the PSI considered two aspects: (i) the level of readiness of the subprojects and (ii) the priority level."
1271,"The subprojects’ level of readiness was determined based on whether preliminary studies, feasibility studies, and detailed engineering designs had been developed."
1272,"The subprojects' priority level (high, medium, and low) was evaluated based on a batching methodology 79 This method follows the requirement of the InviertePE."
1273,80 The financial internal rate of return (FIRR) is the most common metric used in financial analysis to estimate the annual rate of return on investment.
1274,It estimates the flow of net incremental benefits of the project based on two scenarios – with and without the project.
1275,81 This rate includes different risks (for example macroeconomic and agricultural) and inflation.
1276,"82 If O M costs of the irrigation systems are not covered by the FGs and WUO’s revenues, alternate financing sources or changes in current sources will be discussed with stakeholders to make sure all the costs are covered."
1277,83 PSI.
1278,"Arrese, Ricardo León."
1279,Diagnóstico del Estado Situacional de las Organizaciones de Usuarios de Agua (OUAs).
1280,Estudio Socio Económico de los miembros (productores agrarios y/o usuarios) de las OUAs y Criterios de Priorización de las JUs.
1281,"Enero 2018  5 The World Bank Irrigation for Climate Resilient Agriculture (P179037) developed for the Project that considers poverty levels, climate vulnerability, geographical location, and number of farmers in the area covered by the subproject."
1282,"During the first year of implementation, the Project will launch Phase 1, which will consist of the 18 subprojects with detailed designs and six with advanced feasibility studies."
1283,The five subprojects with advanced feasibility studies will be procured under a design-build contract model.
1284,The total amount projected to be contracted under the first year is US$16 million.
1285,Table 1 below shows the organization of the phases.
1286,Table 1: Organization of subprojects in implementation phases.
1287,Phase # of Subprojects Level of readiness Priority level # of works contracts Phase 1A 18 Detailed design High 3-4 Phase 1B 5 Advance feasibility study High 1-2 Phase 2 32 Feasibility study Medium 6 Feasibility study and Phase 3 37 Medium 5 preliminary design Phase 4 38 Preliminary design Low 5 Paris Alignment 99.
1288,The proposed Project is aligned with the goals of the Paris Agreement on both mitigation and adaptation.
1289,Assessment and reduction of mitigation risks.
1290,The proposed project is not at risk of having negative impact on the country’s low-GHG emissions development pathways as the proposed project is supporting activities that will contribute to reducing the impact of climate variability and extreme events; increasing carbon sequestration; saving energy; reducing soil erosion and loss; and mitigating the impact of low temperatures.
1291,"In addition, these activities (which include gravity- based irrigation systems, technical assistance and water and energy efficiency) are considered universally aligned."
1292,"Moreover, the capacity building and technical assistance activities contemplated in the Project are considered universally aligned."
1293,"In sum, the Project is not expected to have a negative impact on Peru’s low G G-emissions development pathways and as such it is considered aligned for mitigation."
1294,"Assessment and reduction of adaptation risks: While climate risks are expected to affect Peru, these are not expected to pose a material risk in achieving the Project development objectives."
1295,"The main climate-related risks identified in the project area are droughts, floods, and frost: (i) Drought’s frequency and intensity may be increased by climate change, possibly threatening to water supply services; (ii) Climate change might also reduce water generated by glacier melts, which act as a buffer to provide water during droughts; and (iii) Climate change can also lead to more intense El Niño events, which in turn leads to flood and mudslide84 risks."
1296,The project aims to address these climate change vulnerabilities through investments to improve the existing off-farm and on-farm irrigation systems as an adaptation measure (such as technified irrigation including sprinkler irrigation systems and provision of adequate water storage to attenuate climate change impacts).
1297,These infrastructure investments will ensure the integration of climate-resilient design to enhance resilience against climate change-exacerbated floods and droughts which reduces the risk to an acceptable level.
1298,"Considering the coverage of the Project, the increased frequency and severity of natural hazards and climate shocks may impact project activities with disruptions in service delivery for short periods of time, which may result in short delays in the implementation of activities (in particular, for the construction and improvement of irrigation systems) in certain areas."
1299,"Similarly, there could be delays in the provision of technical assistance and capacity building activities."
1300,"However, given the nationwide coverage and the phased approach contemplated in the implementation of these activities, this is not expected to pose a risk to achieving the project objectives."
1301,"Moreover, climate-related aspects such as drought and flood early warning systems and data collection for improved water planning towards climate risks will be considered in the water distribution plans."
1302,"As such, the project can be considered aligned on adaptation."
1303,"84 Mudslides typically result during occasional very intense rains, affecting the surrounding hills in Project areas."
1304, 6 The World Bank Irrigation for Climate Resilient Agriculture (P179037) B.
1305,Fiduciary 101.
1306,Financial Management.
1307,"The residual FM risk (after mitigation) is rated Moderate considering PSI’s previous satisfactory experience in managing World Bank-financed operations, and the existence of overall acceptable FM arrangements, which will be strengthened in terms of staffing, the information system, and the future preparation of the Project Operational Manual (POM)."
1308,"It is important to mention that Peru’s central government has sound public financial management systems, and the PSI will benefit from the use of such country systems in the areas of flow of funds, auditing, and the use of the financial information system SIAF for budgeting, and accounting."
1309,Main FM-related risks and associated mitigation measures are as follows.
1310,▪ Potential delays in budget allocation at the beginning of Project implementation and low budgetary execution.
1311,"This is a common issue for projects in Peru, as evidenced by frequent low levels of execution of central government budget in the project portfolio financed by the Bank."
1312,"As part of the mitigation measures, PSI will explore options to process a budget reallocation within its institutional budget to support the beginning of the Project."
1313,Adequate budget management procedures will be included in the POM.
1314,▪ Timely recruitment of a sound FM specialist (Project Administrator) that will support Project implementation.
1315,"To manage this risk, terms of reference will be prepared in a timely manner; additionally, a dated covenant has been included in the loan agreement requiring the FM specialist to be hired within four months after the declaration of effectiveness."
1316,▪ The lack of a tool to support the preparation of reliable financial reports and the monitoring of implementation at subproject level.
1317,"As mitigating measure, setting up a new monitoring system is included as a dated covenant."
1318,"Procurement activities will be carried out by the PSI according to the World Bank’s “Procurement Regulations for IPF Borrowers,” dated September 2023, for the supply of works, goods, non-consulting, and consultant services under the Project."
1319,"While the PSI has satisfactory experience working with World Bank-financed projects, for implementation, the PSI will have to strengthen its procurement capacity by hiring at least one procurement specialist fully dedicated to the Project."
1320,"With the specialist onboard, the procurement risk is rated Low."
1321,See Annex 1 for details on procurement risks.
1322,A Project Procurement Strategy for Development (PPSD) has been developed by PSI.
1323,The PPSD establishes the best procurement arrangements to ensure value for money while efficiently achieving the PDOs.
1324,"The PPSD focuses on most important contracts to be executed within the scope of the Project and summarizes the operational environment in which the Project will be implemented, the market analysis, the risk assessment, and the analysis of different approaches to carry out the procurement for these activities."
1325,A Procurement Plan for the first 18 months of implementation of the Project was developed based on the results of the PPSD.
1326,C. Legal Operational Policies @#&OPS~Doctype~OPS^dynamics@padlegalpolicy#doctemplate Legal Operational Policies Triggered?
1327,Projects on International Waterways OP 7.50 Yes Projects in Disputed Area OP 7.60 No 105.
1328,The Operational Policy 7.50 on International Waterways has been triggered for this Project as several of the subprojects are located along the transboundary Amazon River Basin and Titicaca Lake River Basin.
1329,"However, all interventions under the Project comprise solely improvements to existing irrigation systems, including off-farm distribution and on-farm water application systems."
1330,"No expansions of irrigated areas will be financed, and the Project will not cause appreciable harm to other riparian countries."
1331,"For this reason, an exemption to the notification requirement was  7 The World Bank Irrigation for Climate Resilient Agriculture (P179037) requested for this Policy and authorized on ."
1332,D. Environmental and Social 106.
1333,"From the environmental perspective, project-related risks will mainly stem from civil works under subcomponents A.1 and A.2, including the construction of canals and water mains, rehabilitation and construction of small water reservoirs, installation of equipment, pipes, meters, pressure regulators, sprinklers, drips systems, and land leveling."
1334,"It should be noted that Project activities will take place in previously disturbed areas, since the purpose of the Project is to improve existing irrigation systems; therefore, no significant risks or impacts to living natural resources are envisioned."
1335,"As such, the anticipated key issues derived from physical interventions while implementing civil works are: (i) consumption of water and raw materials; (ii) generation of construction-related wastes; (iii) nuisances related to traffic, dust generation, vibration, and noise; (iv) water overuse for irrigation purposes and reduction of return flow; (v) possible encounters of archaeological remains; and (vi) occupational health and safety hazards."
1336,"Given that, overall, the anticipated environmental and safety risks of the Project are not likely to be significant, and should be easily mitigated in a predictable manner, the task team has determined the Environmental Risk Rating to be moderate."
1337,"From the social perspective, the proposed Project is expected to generate important positive impacts and opportunities for small and medium-sized farmers and their families, considering the outcomes of similar past projects in Peru."
1338,"Nonetheless, possible social risks could include: (i) exclusion of vulnerable populations from taking full advantage of the Project’s different benefits and opportunities, including how to access modernized infrastructure and water services, how to participate in offered training and TA, and how to benefit from labor opportunities, among others; (ii) possible complaints from local farmers not considered in the Project scheme; (iii) minor labor influx risks; and (iv) health challenges to workers and communities posed by the ongoing COVID-19 health context."
1339,A cross-cutting risk that might impact beneficiaries and stakeholders is related to weak/deficient levels of coordination among the multiple entities involved in the preparation and implementation of the Project.
1340,"Considering the risks above, as well as the measures that will be put in place to mitigate them, the task team has determined the Social Risk Rating to be moderate."
1341,"To adequately identify and manage the E&S risks and impacts, the Borrower has prepared an ESMF, which includes mitigation measures according to the scale and nature of the activities."
1342,"Additionally, a Social and Gender Assessment (SGA), an Indigenous Peoples Planning Framework (IPPF), and Labor Management Procedures (LMP) have also been prepared by the Borrower as part of the ESMF and according to the environmental and social standards of the ESF."
1343,Comments received from stakeholders will be incorporated into the ESMF.
1344,"A draft ESMF, including the SGA, LMP, and IPPF, was disclosed on the Bank’s website on  and will be finalized and disclosed within 30 days of the effective date of the Project."
1345,"In addition, an Environmental and Social Commitment Plan and Stakeholder Engagement Plan were disclosed on the Bank’s website on  and , respectively."
1346,"During Project preparation, the Task Team reviewed potential risks associated with the Project and confirmed the following conclusions and mitigation measures: (i) no concerns that existing water dams may affect anticipated subprojects due to unexpected failures caused by unforeseen events, as none of the planned subprojects will present flood risks; (ii) no concerns that implementation and operation of small water reservoirs may pose E&S risks, since the abrupt failure of reservoirs would not pose significant E&S risks or impacts, as the anticipated flooding exposure would be equivalent to the amount of water supplied to the irrigation area during a gravity-fed irrigation operation; and (iii) to address the ESF requirements of the Project, and in response to the complex inter-institutional arrangements required for the preparation and implementation of subprojects, the PIU will be staffed with two full-time E&S specialists at the central level; three socio-environmental specialists at the territorial level; three project management specialists, one E&S specialist, and one archeologist, focused on subprojects preparation; and three coordinators to deal with activities related to TA activities."
1347,"Additionally, each of the contractors and supervision firms for the various subprojects will take on a dedicated professional with expertise in E&S management."
1348, 8 The World Bank Irrigation for Climate Resilient Agriculture (P179037) Gender 112.
1349,PSI aims to promote the closing of gender gaps and measures to reduce barriers to the opportunities and benefits offered by the Project.
1350,"In accordance with the current General Government Policy (2021-2026) that promotes female autonomy and access to productive, economic, and financial resources of enterprises led by women, PSI conducted a Social and Gender Assessment (SGA) of the population in the Project's targeted areas to identify relevant gender gaps and barriers (as part of the ESMF) that the Project may be able to address."
1351,"Two main gaps were identified for this Project, (i) the lack of representation of women in relevant associations, specifically in leadership positions, and (ii) the of lack of technical training women receive."
1352,"A Gender Action Plan (GAP) is being developed by PSI to promote opportunities for women, including better access to training, technical jobs, improving the position of women in WUOs and strengthening their status as agricultural producers."
1353,"The GAP will be based on Peru's existing policies and relevant experiences on integrating gender in water, agriculture, and rural development projects.85 The following activities will be included: (i) developing gender-sensitive proposals and methodologies to institutionalize gender in the proposed investments; (ii) providing technical trainings for female farmers on irrigation management, roles and responsibilities of WUOs, and water regulations; (iii) hosting ""soft- skills"" workshops for women to improve their leadership and communication skills to counteract the common perception of men as being better leaders; (iv) providing workshops for male leaders and users to raise awareness on the importance of a gender focus in WUOs and on water policies with an emphasis on gender equity; and (v) carrying out workshops with the joint participation of women to raise awareness on the contribution and value of the work of female users."
1354,"Under Component A, activities will be designed to increase productivity and economic outcomes for female farmers by: (i) raising awareness on the importance of incorporating women’s preferences in irrigation infrastructure design; (ii) targeting outreach to women in local/indigenous languages to inform them of available irrigation technologies; and (iii) training female farmers on MOM of irrigation technology/equipment."
1355,"Accordingly, during the development of subcomponent A.2 (Technical Assistance and Training to the GGRT), PSI will ensure that female farmers are aware of the opportunities offered by the Project and promote the training of groups of interested women."
1356,"Under Component B, actions will be designed to increase representation and participation of women in decision-making roles on irrigation water management through WUOs."
1357,"To ensure the participation of both men and women in Farmer Groups (GGRTs), PSI will conduct wide-ranging and tailored information dissemination about the benefits and opportunities offered by the Project in the most inclusive way possible."
1358,"This will be achieved using various communication channels86 and consultation meetings, focus groups, among others."
1359,Participation mechanisms (dissemination and consultation) will be identified in the Stakeholder Engagement Plan (SEP).
1360,The Project will monitor the implementation of gender actions and their outcomes through gender indicators included in the results framework.
1361,The results chain will include a focus on increased participation and leadership.
1362,"The indicator will monitor the increase in female representation in management positions (presidency, vice-presidency, and treasury) in decision making bodies of WUOs (water user boards, -commissions and -committees)."
1363,"Currently, the baselines for women’s representation in management positions for water user boards (JU) and water user commissions is approximately 6 percent and 10 percent, respectively, which the Project aims to double."
1364,A second indicator will monitor the share of female farmers benefitting from TA and training with the target of 35 percent.
1365,Citizen Engagement 117.
1366,Community participation and beneficiary engagement is critical to achieving the development objectives of the Project.
1367,"During Project preparation, potential impacts on beneficiaries, especially on socially excluded groups, were 85 The PSI will continue consultations in separate groups for women and men to better understand the barriers they face."
1368,"86 These include written materials, phone calls, emails, WhatsApp messages, in-person meetings, workshops, focus groups, and more."
1369, 9 The World Bank Irrigation for Climate Resilient Agriculture (P179037) examined and several citizen engagement mechanisms were explored.
1370,The Project aims to ensure the participation of stakeholders and vulnerable individuals with the goal of improving the sustainability and effectiveness of irrigation water services and water productivity in family agriculture in selected areas vulnerable to climate change.
1371,Stakeholders and vulnerable individuals will have access to participation mechanisms identified in the SEP.
1372,The SEP also outlines the process flow of the Complaints and Grievances System.
1373,"The Project will also ensure that a citizen engagement strategy, gender approaches, and climate change aspects are included in the design and implementation strategy."
1374,"To that end, the PSI has identified FGs, and investment subprojects based on the PSI guidelines for efficient irrigation investments."
1375,"These guidelines include socio-economic, technical, and institutional criteria following a demand-driven, participatory, and gender-sensitive approaches."
1376,"To reflect the growing threat of water scarcity considering climate change, the Project will focus on watersheds with low water availability and will ensure that efficient irrigation investments are integrated with Peru’s national instruments and policies on water resources management."
1377,"A beneficiary satisfaction survey that assesses improvements in irrigation service delivery in targeted areas will be conducted at the Project's start, mid-term review and completion."
1378,"At the start of Project implementation, Project beneficiaries in targeted areas will be informed on the expected level of irrigation services provided."
1379,"The survey results will be publicly available, and meetings will be held with beneficiaries to identify improvements and will be used as part of PSI internal management performance evaluation."
1380,"The results framework will track as a PDO-level indicator the increase in beneficiary satisfaction on the improvements in irrigation service delivery, from a baseline established in year 1, target at completion 85 percent."
1381,V. GRIEVANCE REDRESS SERVICES 120.
1382,Grievance Redress.
1383,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).
1384,The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns.
1385,Project affected communities and individuals may submit their complaint to the Bank’s independent Accountability Mechanism (AM).
1386,"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."
1387,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.
1388,"For information on how to submit complaints to the Bank’s Grievance Redress Service (GRS), visit "
1389,"For information on how to submit complaints to the Bank’s Accountability Mechanism, visit "
1390,KEY RISKS 121.
1391,The overall risk of the Project is assessed as Moderate.
1392,"While most risks are considered moderate, the political and governance and institutional capacity risks are substantial."
1393,Political and governance risks are assessed as Substantial.
1394,"In recent years, Peru has experienced significant political uncertainty and frequent turnover of high-level government officials at both the executive and ministerial level."
1395,"This environment may lead to high level changes within the PSI, MEF and MIDAGRI with the potential of slowing down Project implementation and achievement of the PDO."
1396,"Given Peru's political context, the inherent political and governance risk is rated Substantial."
1397,"The mitigation measures for the Project will include: (i) reestablishing support for the proposed Project at both MIDAGRI and MEF immediately after high-level changes occur; (ii) having communication and citizen engagement strategies in place; (iii) ensuring an on-going dialogue with the government officials responsible for project implementation at the working level; and (iv) establishing a high-level Project Steering Committee to provide guidance,  0 The World Bank Irrigation for Climate Resilient Agriculture (P179037) coordination and oversight over Project implementation."
1398,Institutional capacity for implementation and sustainability risk is assessed as Substantial.
1399,"As detailed in the Implementing Agency Assessment below, the PSI, the entity responsible for overall implementation, has demonstrated its capacity to effectively execute irrigation projects."
1400,"The institutional capacity risk, however, is rated Substantial given the scale of the proposed Project (six times the size of the successful Sierra Irrigation Project), the geographic scope (the intervention area spans all three of Peru's zones), and the necessity to coordinate with numerous agencies at a national and local level."
1401,"To mitigate this risk, a comprehensive implementation strategy will be developed, and a thorough capacity assessment will be conducted to identify the resources required to support effective implementation."
1402,"Furthermore, the phased approach to implementation based on the subproject readiness and priority level will be used."
1403,The Project Steering Committee will help facilitate the coordination among relevant sector agencies at different Government levels.
1404, 1 The World Bank Irrigation for Climate Resilient Agriculture(P179037) VII.
1405,RESULTS FRAMEWORK AND MONITORING @#&OPS~Doctype~OPS^dynamics@padannexresultframework#doctemplate PDO Indicators by PDO Outcomes Baseline Closing Period Sustainability and efficacy of water services for irrigation Water User Organizations that increase operational efficiency in their hydraulic blocks by 10%.
1406,(Percentage) Jan/2023 Dec/2029 0.00 90.00 Regional Governments with at least 500 hectares of ‘technified’ irrigation projects included in their respective multi -annual investment portfolios.
1407,(Number) Jan/2023 Dec/2029 8.00 16.00 Average increase of the tariff collection rate of Farmer Groups participating in the Project to generate resources for an adequate operation and maintenance of their respective irrigation systems.
1408,(Percentage) Jan/2023 Dec/2029 0.00 20.00 Beneficiaries report an increase in satisfaction with the improvements of irrigation services provided.
1409,(Percentage) Jan/2023 Dec/2029 0.00 80.00 Productivity of water on family farms in selected areas that are vulnerable to climate change.
1410,Increase in agricultural water productivity on family farms in areas vulnerable to climate change.
1411,(Percentage) Jan/2023 Dec/2029 0.00 50.00 Increase in efficiency of application of irrigation water on-farm in areas with improved/’technified’ irrigation.
1412,(Percentage) Jan/2023 Dec/2029 0.00 100.00 Intermediate Indicators by Components Baseline Period 1 Period 2 Closing Period Component A: Irrigation Investments for Climate Resilient Agriculture  2 The World Bank Irrigation for Climate Resilient Agriculture(P179037) 'Technified' irrigation projects implemented.
1413,(Number) Jan/2023 Jun/2026 Jun/2028 Dec/2029 0.00 30.00 70.00 130.00 Average increase in water use efficiency across subprojects.
1414,(Percentage) Jan/2023 Dec/2029 0.00 100.00 Farmers reached with agricultural assets or services (Number) CRI Jan/2023 Dec/2029 0.00 24117.00 ➢Farmers reached with agricultural assets or services - Female (Number) CRI 0.00 12058.00 Area provided with new/improved irrigation or drainage services (Hectare(Ha)) CRI Jan/2023 Dec/2029 0.00 8000.00 ➢Area provided with improved irrigation or drainage services (Hectare(Ha)) CRI Dec/2022 Dec/2029 0.00 8000.00 Producers trained and organized commercially apply the techniques promoted under the Project for the production and commercialization of crops (Percentage) Jan/2023 Dec/2029 0.00 80.00 Direct beneficiaries receiving improved water services for irrigation in climate-vulnerable areas.
1415,"(Number) Jan/2023 Dec/2029 0.00 22,569.00 Component B: Institutional Strengthening for Effective and Sustainable Irrigation Services Percent of Water Distribution Programs (PDA) that are implemented in the WUOs in which the 130 'Technified' Irrigation Projects arelocated."
1416,"(Percentage) Jan/2023 Dec/2029 0.00 100.00 Percent of the Water User Boards (Junta de Usuarios), with which the Farmer Groups interact in the territory, implement TA servicesreceived."
1417,"(Percentage) Jan/2023 Dec/2029 0.00 60.00 Percent of the Demonstration Plots that show favorable indicators for production, profitability and efficiency in the use and application of water."
1418,"(Percentage) Jan/2023 Dec/2029 0.00 90.00 Percent of the Water User Boards, with which FG interact, implement their Strategic Management Plan, incorporating new investment proposals."
1419,(Percentage)  3 The World Bank Irrigation for Climate Resilient Agriculture(P179037) Jan/2023 Dec/2029 0.00 90.00 Percent of the Regional 'Technified' Irrigation Plans have a portfolio of projects of 'technified' irrigation projects of at least 500 hectares each.
1420,(Percentage) Jan/2023 Dec/2029 0.00 80.00 Female participation in management positions in WUO decision making bodies (Percentage) Jan/2023 Dec/2029 0.00 100.00 Female farmers benefitting from TA and training (Percentage) Jan/2023 Dec/2029 0.00 35.00 Component C: Project Management and Interagency Coordination  4 The World Bank Irrigation for Climate Resilient Agriculture (P179037) Monitoring & Evaluation Plan: PDO Indicators by PDO Outcomes Sustainability and efficacy of water services for irrigation Number of Regional Governments that have a solid portfolio of efficient irrigation projects that contribute to closing the gap of agricultural land without efficient irrigation systems.
1421,"Measures the number of participating Regional Governments that have a solid portfolio (defined as an investment Description portfolio of ""technified"" irrigation projects included in their respective Multi-annual Investment Portfolios), of a total of at least 500 hectares per each Regional Government."
1422,Frequency Annually Data source GORE Methodology for Data Collection Responsibility for Data PSI Collection Water User Organizations that increase operational efficiency in their hydraulic blocks by 10%.
1423,(Percentage) Measures the percentage of FG and/or WUOs that increase their operational efficiency (defined by the relationship Description between the water volume distributed at the level of the users' properties or plots divided by the volume extracted or derived from a given water source) by 5-10% or more in their respective blocks.
1424,Frequency Annually Data source Methodology for Data Collection Responsibility for Data Collection Beneficiaries report an increase in satisfaction with the efficacy of water services for irrigation provided.
1425,"To measure the efficacy of irrigation services, this indicator measures the increase in satisfaction with farmers to receive Description the appropriate volume of irrigation water at the appropriate opportunity as per the irrigation plan."
1426,"Frequency Baseline, MTR and closing Data source Surveys carried out by PSI Methodology for Data Representative beneficiary survey Collection Responsibility for Data PSI Collection Productivity of water on family farms in selected areas that are vulnerable to climate change."
1427,Increase in agricultural water productivity (Percentage) Description Measured in kg crop yield per cubic meter water used.
1428,(kg/m3).
1429,"Frequency Annually Data source PSI, FG data Methodology for Data Collection Responsibility for Data PSI Collection Increase in efficiency of application of irrigation water on-farm in areas with improved/’technified’ irrigation."
1430,"(Percentage) At the end of the Project, the agricultural area with ""technified"" irrigation more than doubles (increase of 100%) the Description efficiency of irrigation water application at the farmer plot level."
1431,Frequency Annually Data source FG/PSI data Methodology for Data  5 The World Bank Irrigation for Climate Resilient Agriculture (P179037) Collection Responsibility for Data PSI Collection Direct beneficiaries receiving improved water services for irrigation in climate-vulnerable areas.
1432,"(Number) Climate Indicator to count the number of beneficiaries who receive improved water services for irrigation in climate- vulnerable areas, as defined as areas vulnerable to drought and or frost."
1433,"""Prone to low water levels and low precipitation Description or frost"" is one selection criteria for the subprojects."
1434,The number of beneficiaries is estimated as those identified in 120 subprojects that tagged this selection criteria.
1435,Frequency Data source Methodology for Data Collection Responsibility for Data Collection Monitoring & Evaluation Plan: Intermediate Results Indicators by Components Component A: Irrigation Investments for Climate Resilient Agriculture 'Technified' irrigation projects implemented.
1436,(Number) Description Measures implementation of 'technified irrigation' subprojects executed under the Project.
1437,Frequency Data source Methodology for Data Collection Responsibility for Data Collection Average increase in water use efficiency across subprojects.
1438,"(Percentage) This indicator measures the average increase in water use efficiency at subproject level, including the off-farm infrastructure as well as on-farm efficiency gains."
1439,Water use efficiency is defined as volume of water applied on each plot Description in relation to the volume of water extracted from the intake source at subproject level.
1440,The target is an increase of at least double (100%) compared to the baseline.
1441,Frequency Data source Methodology for Data Collection Responsibility for Data Collection Farmers reached with agricultural assets or services (Number) CRI This indicator measures the number of farmers who were provided with agricultural assets or services as a result of World Bank project support.
1442,"""Agriculture"" or ""Agricultural"" includes: crops, livestock, capture fisheries, aquaculture, agroforestry, timber, and non-timber forest products."
1443,"Assets include property, biological assets, and farm and processing equipment."
1444,"Biological assets may include animal agriculture breeds (e.g., livestock, fisheries) and genetic material of livestock, crops, trees, and shrubs (including fiber and fuel crops)."
1445,"Services include research, extension, training, Description education, ICTs, inputs (e.g., fertilizers, pesticides, labor), production-related services (e.g., soil testing, animal health/veterinary services), phyto-sanitary and food safety services, agricultural marketing support services (e.g., price monitoring, export promotion), access to farm and post-harvest machinery and storage facilities, employment, irrigation and drainage, and finance."
1446,Farmers are people engaged in agricultural activities or members of an agriculture-related business (disaggregated by men and women) targeted by the project.
1447,"Frequency Data source Methodology for Data  6 The World Bank Irrigation for Climate Resilient Agriculture (P179037) Collection Responsibility for Data Collection Farmers reached with agricultural assets or services - Female (Number) CRI Description Frequency Data source Methodology for Data Collection Responsibility for Data Collection Area provided with new/improved irrigation or drainage services (Hectare(Ha)) CRI This indicator measures the total area of land provided with irrigation and drainage services under the project, including Description in (i) the area provided with new irrigation and drainage services, and (ii) the area provided with improved irrigation and drainage services, expressed in hectare (ha)."
1448,Frequency Bi-annually Data source Methodology for Data Collection Responsibility for Data Collection Area provided with improved irrigation or drainage services (Hectare(Ha)) CRI Measures in hectares the total area of land provided with new or improved irrigation or drainage services in operations Description supported by the World Bank.
1449,Frequency Annually Data source Methodology for Data Collection Responsibility for Data Collection Producers trained and organized commercially apply the techniques promoted under the Project for the production and commercialization of crops (Percentage) Description Measures the uptake of TA activities promoted under Project among beneficiaries.
1450,"Frequency Baseline, MTR, Closing Data source Methodology for Data Collection Responsibility for Data Collection Component B: Institutional Strengthening for Effective and Sustainable Irrigation Services in response to Climate Change –Exacerbated Vulnerabilities Average increase of the tariff collection rate of Farmer Groups participating in the Project to generate resources for an adequate operation and maintenance of their respective irrigation systems."
1451,(Percentage) Description Measures the financial and managerial effectiveness of Farmer Groups.
1452,Frequency Annually Data source FG Methodology for Data Collection Responsibility for Data PSI Collection Percent of Water Distribution Programs (PDA) that are implemented in the WUOs in which the 130 'Technified' Irrigation Projects arelocated.
1453, 7 The World Bank Irrigation for Climate Resilient Agriculture (P179037) (Percentage) Description Measures the level of collaboration between FG and WUOs and the results of the TA provided.
1454,"Frequency Bi-annually Data source FG, WUOs, ANA, ALA Methodology for Data Collection Responsibility for Data PSI, ANA Collection Percent of the Water User Boards (Junta de Usuarios), with which the Farmer Groups interact in the territory, implement TA servicesreceived."
1455,"(Percentage) Measures success of collaboration between the Project, FG and corresponding Water User Boards (Junta de Usuarios / Description JU) with regard to the implementation of TA support provided by the Project."
1456,"Frequency Annually Data source WUO, ANA, FG Methodology for Data Collection Responsibility for Data PSI, ANA Collection Percent of the Demonstration Plots that show favorable indicators for production, profitability and efficiency in the use and application of water."
1457,"(Percentage) Measures the progress achieved in Demonstration Plots with regards to production, profitability and efficiency of water Description applied and crop yield."
1458,"Frequency Annually Data source FG Methodology for Data Collection Responsibility for Data PSI Collection Percent of the Water User Boards, with which FG interact, implement their Strategic Management Plan, incorporating new investment proposals."
1459,"(Percentage) Percent of the Water User Boards with which the 130 Farmer Groups interact in their respective subproject areas, Description implement their Strategic Management Plan, generating investment proposals from FGs to be incorporated into investment portfolios of Regional and Local Governments."
1460,"Frequency Annually Data source WUO, FG Methodology for Data Collection Responsibility for Data PSI, ANA Collection Percent of the Regional 'Technified' Irrigation Plans have a portfolio of projects of 'technified' irrigation projects of at least 500 hectares each."
1461,"(Percentage) ""Solid Portfolio"" is defined as at least 500ha of 'technified' irrigation projects."
1462,Including these projects in Regional Description 'Technified' Irrigation Plan is a prerequisite to later incorporate these projects in regional multi-annual investment portfolios.
1463,Measured cumulatively during project implementation period.
1464,"Frequency Annually Data source GORE, GOLO, FG Methodology for Data Collection Responsibility for Data PSI Collection Female participation in management positions in WUO decision making bodies (Percentage)  8 The World Bank Irrigation for Climate Resilient Agriculture (P179037) Female participation in management positions (presidency, vice-precidency and treasury) in WUO decision making Description bodies."
1465,In Juntas is currently (period 2021-2024) at 6% (baseline) and the target for the 6 year duration of the project will be 12%.
1466,In the case of the committees is 10% and the target will be 20%.
1467,Targets are representing a 100% increase.
1468,"Frequency At MTR and at Project end Data source WUOs, ANA, Methodology for Data Collection Responsibility for Data PSI, ANA Collection Female farmers benefitting from TA and training (Percentage) Measures the percentage of female farmers as part of the beneficiaries of the Project who benefit from the TA and Description training provided."
1469,Frequency At Mid-term and at Closing Data source Beneficiary survey.
1470,Methodology for Data Collection Responsibility for Data PSI Collection Component C: Project Management and Interagency Coordination  9 The World Bank Irrigation for Climate Resilient Agriculture (P179037) ANNEX 1: Implementation Arrangements and Support Plan COUNTRY: Republic of Peru Irrigation for Climate Resilient Agriculture Project Institutional and Implementation Arrangements 1.
1471,"The Implementation Arrangements and Support Plan is based on the Project’s scope and risk profile, as well as on the lessons learned from the implementation of the previous World Bank Sierra Irrigation Subsector Project."
1472,"It relies on: (i) a Project Steering Committee (SC) with strategic and consultative functions; (ii) the PSI, responsible for overall Project coordination and implementation; (iii) the ANA, responsible for TA support under Component B; and (iv) various subnational Government and beneficiary entities."
1473,"The recipient of the IBRD loan will be the Republic of Peru, through the MEF, which will transfer the loan proceeds to MIDAGRI and PSI."
1474,"PSI will be the implementing agency, responsible for the implementation of all Project activities, internal and external communications, FM, procurement, and compliance with ESF."
1475,The Project Steering Committee.
1476,MIDAGRI will establish the Steering Committee (SC).
1477,The SC will be the highest governing body of the Project.
1478,It will be chaired by the Minister of MIDAGRI or his/her designated representative and is comprised of members appointed by the Ministerial Resolution and acceptable to the World Bank.
1479,"These members will include one representative from the MEF, the Executive Director of the PSI, one representative of the ANA."
1480,"The SC operates at a strategic, consultative level, and ensures the Project’s alignment with government policy and directives."
1481,"The SC will hold biannual meetings to fulfil its responsibilities, including: tracking Project’s activities; monitoring and assessing progress to ensure that targets, disbursements and expected results are reached as agreed; providing institutional support to the PSI, including to ensure that appropriate human resources are in place; monitoring compliance with World Bank policies and guidelines; reviewing and approving key Project documents, such as the POM and annual budget; recommending strategies to resolve bottlenecks during Project implementation; documenting decisions made; and referring issues, as necessary, for deliberation by higher instances."
1482,"In fulfilling its functions, the SC will be supported by an Executive Secretariat led by PSI, whose responsibilities will include coordinating and undertaking tasks assigned to the SC."
1483,"The PSI has extensive experience in managing externally financed operations, and the proposed SC model reflects a similar arrangement to the one in place for the Integrated Water Resources Management in 10 Basins Project (P151851) and other World Bank financed projects in Peru."
1484,"The PSI will be responsible for the overall implementation of the Project and will serve the following key functions: (i) ensuring proper and timely implementation of Project activities; (ii) monitoring and supporting proper implementation of the Project’s ESF; (iii) prepare relevant technical and procurement-related documents in a quality manner; (iv) ensuring that procurement is carried out in the most expeditious manner, with technical input provided by relevant departments and/or expertise in the relevant area being financed, following World Bank rules; (v) monitoring contracts under the Project; (vi) presenting Project progress and financial reports on a timely basis as required by the World Bank; (vii) disseminating results in such a manner as to strengthen stakeholders’ feedback; and (viii) hosting and facilitating World Bank support missions and working to optimize the operation’s results and impact."
1485,"Two units – Unidad Gerencial de Riego Técnificado (UGERT), and Unidad Gerencial de Capacitación y Asistencia Técnica (UGCAT) will be responsible for Project implementation as outlined in the chart in Figure A 6 below."
1486, 0 The World Bank Irrigation for Climate Resilient Agriculture (P179037) Figure A 1: PIU Organigram of PSI.
1487,"As part of MIDAGRI, the PSI is the governing entity of the irrigation sub-sector at the national level, encouraging and promoting the efficient and sustainable use of water for irrigation in agriculture."
1488,It currently works nationwide through its seven regional offices and seven local units on the implementation of irrigation projects.
1489,"The PSI is headquartered in Lima and has departments focused on (i) administration and financing, (ii) infrastructure, (iii) irrigation management, and (iv) planning, budgeting, and M&E."
1490,"The PSI has a long experience of successfully implementing investment projects with development institutions.87 The PSI also has extensive experience implementing projects supported by Peru's national investment program (InviertePE), the Inter-American Development Bank (IADB), the Agency for Japan International Cooperation (JICA), and the Global Environmental Facility (GEF)."
1491,87These engagements include the recently closed World Bank Sierra Irrigation Subsector Project (P104760).
1492,"The Implementation Completion and Results Report, which was finalized in June 2017, rated the Project's overall outcome, the Project's implementation, and the implementation agency performance as satisfactory."
1493, 1 The World Bank Irrigation for Climate Resilient Agriculture (P179037) Figure A 2: PSI Implementation Process (as Regulated by its NTIP Regulation).
1494,Table A 1: Distribution of the 130 subprojects by departments and regions.
1495,NUMBER OF DEPARTMENT AREA (HA) PROJECTS REGION AMAZONAS 170.51 2 Selva ANCASH 279.27 5 Costa/Sierra APURIMAC 271.91 3 Sierra AREQUIPA 647.3 10 Costa/Sierra AYACUCHO 744.27 10 Sierra CAJAMARCA 714.32 11 Sierra/Selva CUSCO 781.2 14 Sierra HUANCAVELICA 636.69 9 Sierra HUÁNUCO 217.26 4 Sierra ICA 329.96 7 Costa/Sierra JUNÍN 555.34 8 Sierra/Selva LA LIBERTAD 494.55 7 Costa/Sierra LAMBAYEQUE 131.27 3 Costa/Sierra LIMA 666.83 12 Costa/Sierra MOQUEGUA 346.15 7 Sierra PIURA 523.55 10 Costa/Sierra PUNO 335.16 4 Sierra SAN MARTIN 100.19 2 Selva TACNA 68.65 2 Sierra TOTAL 8014.38 130  2 The World Bank Irrigation for Climate Resilient Agriculture (P179037) Figure A 3: Simplified implementation Schedule for Components A and B of the project.
1496,"The Bank team carried out an assessment of the PSI's current capacity (including technical, environmental, social, financial management (FM), and procurement) to implement the Project and rated it as Moderate."
1497,"Given the geographic scope and overall scale of the Project, it is likely that additional resources will be needed to support the PSI during implementation."
1498,The Project design calls for interaction and coordination among different agencies.
1499,"The Project will require the active participation of farmer groups (GGRTs), WUOs (encompassing Water User Boards with their commissions and committees), local and regional governments, and ANA."
1500,"The Project will also support the involvement of the Local Water Authorities (ALA) to strengthen the continuous monitoring of Project interventions, water consumption, related system parameters, and enforcement of effective regulatory instruments to manage water use."
1501,"In addition, the Project will require coordination with MIDAGRI's ongoing rural programs (AGROIDEAS, AGRORURAL, and Sierra-Selva Exportadora) and the INIA.88 Governance and institutional related activities under Component B will require strong collaboration between several of MIDAGRI's offices and the ANA."
1502,"Given the need for strong coordination among various agencies, the PSI, with the support of MIDAGRI and MEF, will create a Project Steering Committee to provide high-level guidance, oversight, and control of the Project as well as inter-institutional agreements with key agencies (i.e., ANA, AGRORURAL, and AGROIDEAS)."
1503,Component C (US$12.6 million) will strengthen the Borrower´s capacity to carry-out Project activities.
1504,"To this end, it will finance the provision of technical assistance, consulting and non-consulting services, training and goods to the four implementing agencies necessary for the effective implementation of the respective activities under their mandate."
1505,"This Component will likewise support training aimed at qualifying professionals directly or indirectly involved in World Bank procurement policies, in the development of TORs, budget and costs, contract management, supervision, Project monitoring & evaluation, disbursement, and controls, as well as implementation of the environmental and social standards."
1506,Implementation Support Plan and Resource Requirements 11.
1507,"The Implementation Support Plan is based on the Project’s risk profile, the lessons learned of previous operations 88Partnerships with MIDAGRI’s rural programs are envisioned to support improvements to the supply chain of strategic crops and to apply research results and extension services to farmers benefiting from on-farm irrigation improvements."
1508,These partnerships are especially important to ensure that increases in productivity due to irrigation improvements are accompanied by integration into agricultural supply chains and connection to national and international markets.
1509," 3 The World Bank Irrigation for Climate Resilient Agriculture (P179037) with MIDAGRI and the PSI, and water sector projects of similar scope."
1510,Biannual World Bank implementation support missions will be complemented by continuous dialogue on Project progress and challenges.
1511,"This interaction will cover technical and nontechnical aspects of implementation, including FM, procurement, and ESF."
1512,Implementation Status and Results Reports (ISR) will be filed after every mission.
1513,"The World Bank will continue to provide fiduciary, ESF and other Project-related training as needed."
1514,The Implementation Support Plan will be reviewed annually to ensure that it continues to meet the implementation support needs of the Project.
1515,"At the halfway point of Project implementation, a midterm review will be undertaken with a view to making any changes to the design and implementation arrangements, including any changes to the Loan Agreement that would require a restructuring."
1516,The World Bank task team will work with the PMU and designated officials to clarify the requirements necessary to effect any changes.
1517,It is understood that any changes to the Project that require amendments to the Loan Agreement will require a formal request from the Government’s signatory.
1518,Table A 2 and Table A 3 estimate the level of inputs and staffing that will be needed from the World Bank to provide implementation support to the proposed Project.
1519,These estimates will be reviewed and revised as needed throughout implementation.
1520,"Table A 2: Resource Requirements Focus Skills Needed Project management and Project implementation support Team Leaders coordination Compliance with E&S standards and management of E&S risks Environmental and Social Development Specialists Task Team Leaders, Technical Specialists (Irrigation, Water Technical, oversight of civil works, and quality review of Resources Management, Disaster Risk Management (Droughts), Terms of Reference, technical reports and bidding documents Gender, Climate Change), Externally hired consultants (as needed) Procurement review of bidding documents/implementation Procurement Specialist support FM supervision / implementation support FM Specialist Table A 3: Implementation Support Plan."
1521,"Number of Staff Number of Trips per Skills Needed Weeks per Year Year Task Team Leaders 20 2 Irrigation Specialist 6 2 Disaster Risk Management 6 1 Gender Specialist 1 0 Climate Change Specialist 1 0 FM Specialist 3 2 Procurement Specialist 3 2 Environmental Specialist 3 3 Social Specialist 6 3 Operations support 3 2 STC Consultants (support to project management; oversight of civil works; technical expertise on DRM, drought risk reduction, 6 0 reforestation; support to procurement and contract management)  4 The World Bank Irrigation for Climate Resilient Agriculture (P179037) Financial Management 15."
1522,"A Financial Management (FM) Assessment was performed in accordance with the FM Manual for World Bank Investment Project Financing, Bank Policy “Investment Project Financing”, and Bank Directive “Investment Project Financing”, to evaluate the adequacy of the Sub-sectoral Irrigation Program (Programa Subsectorial de Irrigaciones - PSI) FM arrangements for the implementation of the Irrigation for Climate Resilient Agriculture Project."
1523,The PSI will be responsible for the overall implementation of the Project.
1524,The PSI has been successfully implementing investment projects with development institutions for many years.
1525,These engagements include the recently closed World Bank Sierra Project (P104760).
1526,"The Implementation Completion and Results Report, finalized in June 2017, rated the Project's overall outcome, the Project's implementation, and the implementation agency performance as satisfactory."
1527,"The PSI also has experience implementing projects supported by Peru's national investment program (InviertePE), the Inter-American Development Bank (IADB), the Agency for Japan International Cooperation (JICA), and the Global Environmental Facility (GEF)."
1528,The FM risk without considering the agreed mitigating measures described in the following paragraphs is rated Substantial.
1529,Residual FM risk (after mitigation) is considered moderate.
1530,"This is due to PSI’s previous satisfactory experience managing World Bank financed operations, and the existence of overall acceptable FM arrangements, which will be strengthened in terms of staffing, the information system, and the future preparation of the Project Operational Manual (OM)."
1531,"It is important to mention that Peru´s central government has sound PFM systems, and the PSI will benefit from the use of such country systems in the areas of flow of funds, auditing, and the use of the financial information system SIAF for budgeting, and accounting."
1532,Main FM-related risks and associated mitigation measures are as follows.
1533,"(i) Potential delays in budget allocation, at the beginning of Project implementation (this is a usual issue for projects in Peru) and low budgetary execution, as evidenced by the low execution experienced by the central government budget which is a systemic matter in the Perú’s portfolio financed by the Bank."
1534,"As part of the mitigation measures, PSI will explore options to process a budget reallocation within its institutional budget to support the beginning of the Project."
1535,Adequate budget management procedures should be included in the OM.
1536,(ii) Timely recruitment of a sound FM specialist (Project Administrator) that will support Project implementation.
1537,"To manage this risk, the Bank will approve the terms of reference."
1538,"Additionally, a dated covenant has been included in the loan agreement requiring the FM specialist to be hired within four months after the declaration of effectiveness."
1539,"The lack of a tool that can support the preparation of reliable project financial reports and monitoring of implementation at subproject level, for which the mitigating measure is the implementation of a new system to be included as a dated covenant."
1540,The FM Action Plan is provided in the table below: Table A 4: Financial Management Action Plan.
1541,Action to be completed Responsible Target Date 4 months after the declaration Timely recruitment of a sound FM specialist (Project PSI of effectiveness.
1542,"(Dated Administrator) Covenant) Recruitment of the Treasury Specialist, and an Accounting 6 months after the declaration PSI Specialist of effectiveness PSI shall implement a financial information system in a manner 6 months after the declaration satisfactory to the Bank, including, inter alia, the required of effectiveness."
1543,(Dated PSI functionality to allow preparation of financial reports and Covenant) control and monitoring of Subprojects.
1544, 5 The World Bank Irrigation for Climate Resilient Agriculture (P179037) 20.
1545,"Based on the assessment performed, the FM arrangements proposed in Table A 4 are considered acceptable subject to the successful implementation of agreed mitigating measures, aimed at enhancing PSI’s capacity for project implementation."
1546,"Organization and Staffing: The PSI’s Administration Unit is responsible for accounting, administrative and financial transactions, internal control, preparation of financial statements, procurement and contracting, human resources, treasury and will undertake overall responsibility for the Project’s financial management tasks, in close coordination with the Planning, Budgeting and Monitoring Unit."
1547,"To this end, a Project Administrator, a Treasury Specialist, and an Accounting Specialist will be hired, as part of the Project team, to support Project implementation."
1548,"This FM staff will work in close coordination with the Administration Unit and the Planning, Budgeting and Monitoring Unit."
1549,"The FM staff, with required qualifications and practical experience, will be key to ensuring adequate FM arrangements throughout the life of the Project."
1550,The Project Administrator considered the FM specialist shall be considered key staff and shall be hired no later than four months after the Project Effectiveness date.
1551,Programming and Budget: The preparation of the annual budget will be in line with general government procedures regulated by the Annual Budget Law established by the Ministry of Finance through the Dirección Nacional de Presupuesto Público (DNPP) and related guidance.
1552,The budget is operated under the Sistema Integrado de Adminsitración Financiera (SIAF).
1553,PSI will have the responsibility to formulate the budget to the (DNPP) for Loan and counterpart funds of the Project.
1554,"Such procedures will be complemented by specific processes and procedures established in the POM, such as the preparation of an annual operating plan, including all sources of financing (IBRD and counterpart funds)."
1555,"PSI will be responsible for: (a) budget formulation and timely requesting of resources for each year in accordance with the annual operating plan; (b) ensuring the allocation of disbursement requests to the appropriate designated account for the execution of the activities agreed under the Project; (c) proper recording of the approved budget in the new information system, following a classification by Project component/subcomponent; and (d) timely recording of commitments, and payments, to allow adequate budget monitoring and the provision of accurate information on Project commitments for programming purposes."
1556,"While budgetary arrangements are acceptable, at the beginning of Project implementation there may be delays in budget allocation, as this is a usual issue for projects in Peru that results from the application of the country budget regulations."
1557,"To mitigate the risk, PSI will seek options within the country and institutional arrangements."
1558,"Accounting – Information System: PSI will have to comply with Peruvian budget and public financial management laws, including the use of government SIAF and its general chart of accounts."
1559,"Considering the nature of Project activities and information needs, PSI will use a tailormade financial information system (SISGA), funded under the Project, which is pending to be purchased and implemented."
1560,SISGA will have interface with SIAF to issue the financial reports and the preparation of statements of expenditures in US Dollars according to the Project components/categories.
1561,"Even though, this system includes the basic standard modules, including budget, accounting, treasury, fixed assets, inventories, guarantee letters, and it is basically prepared to allow preparation of financial reports and, PSI will require to the provider the enhancement of system functionalities, and to adjust and complement those modules to respond to PSI’s and the Project specific needs."
1562,"Those adjustments include: i) a subproject module ii) a financial reporting module from which IFRs can be issued, in the formats and content agreed with the Bank; and iii) a module for preparation of Statement of Expenditures (SOEs) that allow the proper recording of the payments/disbursements made in accordance with the flow of funds arrangements defined for the Project."
1563,"Once the system is designed and implemented, the Bank will review its operation to ensure transactions processed in SIAF are consistently reflected in the SISGA system."
1564,It has been agreed that the system to manage Project funds will be fully implemented and become operational six months after Project effectiveness.
1565,Such commitments will be reflected as a dated covenant under the legal agreement.
1566,"Procedures and Internal Control: PSI has developed expertise and has put in place processes, procedures, and internal control mechanisms for the implementation of the former Project."
1567,"PSI’s payment procedures including internal controls for the approval, processing, and authorization of payments under civil works are adequate and according to the  6 The World Bank Irrigation for Climate Resilient Agriculture (P179037) information provided by PSI, payments are made on a timely basis."
1568,"The CY2021 audited financial statements of PSI, specifically the internal control report, did not raise any observation about these procedures."
1569,PSI will prepare a draft version of the POM including the FM chapter.
1570,"The OM will reflect processes, procedures, and internal control mechanisms for the new Project, chart of accounts according to the functional classification of the Project, preparation of the IFRs, terms of reference of the additional financial management staff, the flow charts that describe the procedures, roles and responsibilities, and specific internal controls to be followed for the implementation of the Project."
1571,"Therefore, this chapter, as with the entire POM, must be satisfactory to the Bank as an effectiveness condition."
1572,"Internal Audit: PSI is under the scope of the Organic Law of the National System of Control and the General Comptroller of the Republic (Ley Orgánica del Sistema Nacional de Control y de la Contraloría General de la República), and as such, their organizational structure includes an Internal Control Office (Órgano de Control Institucional, OCI), dependent of the Contraloría General de la República (CGR), and responsible for the oversight of all operations."
1573,"Currently, the OCI has ten auditors, four professionals hired by the CGR and assigned to PSI, and six professionals hired by PSI."
1574,"Additionally, to carry on concurrent audits to subprojects, PSI, per OCI Chief request, hire temporally other technical professionals to be part of the audit team (i.e., environmental engineer, hydraulic engineer, etc.)."
1575,This staff is considered sufficient to comply with the annual plan which is coordinated and approved by the CGR.
1576,The OCI may include under their annual program a review of the Project activities and proposed recommendations if needed.
1577,"If such audits occur, PSI will provide the Bank with copies of internal audit reports covering Project activities and financial transactions."
1578,"Additionally, OCI’s reports are publicly available on the CGR Web page."
1579,"Financial Reports: Interim Financial Reports (IFR) should specify sources and uses of funds, reconciling items (as needed) and cash balances, with expenditures classified by category and component, and a statement of investments reporting the current semester and the accumulated operations against ongoing plans with footnotes explaining the important variances."
1580,The reports should be prepared in local currency and in US dollars.
1581,"The IFRs would be submitted on a semi-annual basis, within 45 days after the end of each calendar semester."
1582,"Once the new system and additional modules are in place, the Bank will assess whether PSI has acceptable arrangements to prepare reliable IFRs."
1583,"Auditing arrangements: Project financial statements will be audited following International Standards on Auditing (ISA), by an independent firm and in accordance with terms of reference, both acceptable to the Bank."
1584,"An audit firm will be hired by PSI, through the General Comptroller Office of Peru, which will perform the audit of the Project and provide the audit report."
1585,PSI will submit the audit report to the Bank no later than 6 months after the end of each fiscal year or any other period agreed with the Bank.
1586,Audit cost would be financed out of loan proceeds.
1587,"The scope of the audit would be defined by PSI, and the Bank, based on Project specific requirements and responding, as appropriate, to identified risks."
1588,Flow of funds and Disbursement Arrangements: Bank loan proceeds will follow the Bank’s disbursement policies and procedures as described in the Disbursement and Financial Information Letter.
1589,"The Bank and the Borrower have agreed to use the Single Treasury Account as a disbursement mechanism for the Project and, hence, advances to the designated account will be made to the STA."
1590,The STA for the use of loan resources is in place in Peru according to the Legislative Decree No 1441.
1591,Funds of the loan will be identified with a segregated code or sub-account of the STA.
1592,The POM will include specific procedures to follow for PSI to manage the STA.
1593,The Bank will disburse loan proceeds using one of following three methods: (i) advance method: under the STA with a fixed ceiling; (ii) direct payment; and (iii) reimbursement.
1594,The Project’s flow of funds is presented in the following chart:  7 The World Bank Irrigation for Climate Resilient Agriculture (P179037) Figure A 4: Diagram of Flow of Funds.
1595,PSI will be responsible for presenting disbursement applications to the Bank as well as presenting their justifications for expenditures (through statements of expenditures - SOEs).
1596,The specific protocols and applicable internal control arrangements for the payment processes and procedures will be reflected in the POM.
1597,Loan proceeds will be disbursed against the following expenditure categories: Table A 5: Expenditure categories.
1598,"Amount of the Percentage of Expenditures to be Financed Category Loan Allocated (Inclusive of taxes) (expressed in USD) (1) Goods, works, non-consulting services, consulting services, Operating Costs, and 100,000,000 100 external audits for the Project TOTAL AMOUNT 100,000,000 31."
1599,Supervision Plan: The WB plans to perform at least two supervision missions per year to the extent possible while also reviewing the annual audit reports and the IFRs.
1600,"As part of the program management team, an administrative specialist will prepare monthly reports and financial reports on the implementation of the intervention as part of the overall program coordination."
1601,"For Component A, an administrative assistant will prepare monthly reports and financial reports on the implementation of this intervention."
1602,An administrative specialist will perform financial monitoring of the investment programed for activity 2 (Technical assistance to the RGs for the institutionalization and promotion of investments in irrigation) as well as prepare monthly reports and financial reports on the implementation of this intervention.
1603,The following table presents the annual financial schedule of the Project.
1604, 8 The World Bank Irrigation for Climate Resilient Agriculture (P179037) Table A 6: Annual Financial Schedule of the Project Financial Schedule Description Total cost Year 1 Year 2 Year 3 Year 4 Year 5 I.
1605,"Portfolio of 130 projects 106,732,269.15 12,524,223 24,347,227 34,182,243 31,532,421 4,146,155 1.1 Studies and works 90,187,515 12,025,632 21,860,602 29,586,719 26,714,562 - 1.2 Technical assistance 16,544,754 498,591 2,486,626 4,595,524 4,817,859 4,146,155 II."
1606,"Other program interventions 6,724,081 815,011 1,367,371 1,765,848 1,806,076 969,774 2.1 Activity 1 5,182,802 405,083 1,020,919 1,459,866 1,524,392 772,542 2.2 Activity 2 1,541,280 409,928 346,453 305,981 281,684 197,233 III."
1607,"Program management 12,593,685 2,242,714 2,864,773 3,989,363 1,957,777 1,539,060 Total 126,050,036 15,581,948 28,579,372 39,937,453 35,296,274 6,654,989 Procurement 33."
1608,"Procurement activities will be carried out by PSI according to the World Bank’s “Procurement Regulations for IPF Borrowers”, dated September 2023, for the supply of works, goods, and non-consulting and consultant services under the Project."
1609,The World Bank’s Standard Procurement Documents will govern the procurement of World Bank- financed Open International Competitive Procurement.
1610,"For procurement involving National Open Competitive Procurement, and other methods, the documents will be agreed on with the World Bank."
1611,An advanced draft of the PPSD has been carried out by PSI.
1612,The PPSD describes how procurement in this operation will support the PDO and deliver value for the money invested under a risk-based approach.
1613,The PPSD focuses on the most important contracts related to the execution of the subprojects to be financed under Component A of the Project.
1614,"As explained in previous sections, the 130 subprojects are expected to be carried out in a sequential way along the implementation of the Project."
1615,"During the first year, the bidding processes for a total of 24 subprojects are expected to be launched (Phase I)."
1616,"Of the 24 subprojects, 18 have detailed technical designs and are expected to be tendered at the beginning of the first year of implementation of the Project."
1617,"During the preparation, PSI has carried out market research."
1618,"Based on that, the 18 subprojects will be tendered in a total of 10 bidding processes, according to geographical distribution."
1619,"For the other 6 subprojects to be tendered during the first year, a design building approach will be applied."
1620,The rest of the subprojects are at level of feasibility study and/or preliminary design.
1621,"These subprojects will be launched from the second year of Project implementation, applying similar criteria for the grouping of subprojects and the level of the development of the technical designs."
1622,"Regarding the consultant services related to the elaboration of technical designs and supervision of works, they are expected be carried out through consulting firms, and the procurement processes will be grouped with a similar approach to the works (i.e., geographical distribution)."
1623,"Procurement for works, goods, consulting services and non-consulting services will be implemented based on Mandatory Procurement Prior Review Thresholds detailed in Annex I of the WB’s Procurement Procedures."
1624,"All procurement procedures, including the roles and responsibilities of different participating entities and units, will be defined in the POM."
1625,"PSI prepared a Procurement Plan, which provides adequate supporting market analysis for the selection methods detailed in the Plan, based on the PPSD."
1626,"In accordance with Paragraph 5.9 of the Procurement Regulations, the World Bank’s Systematic Tracking and Exchanges in Procurement system will be used to prepare, clear, and u pdate procurement plans and conduct all procurement transactions for the Project."
1627,"Civil works: Component A will finance civil works under Component A for: (i) the construction and improvement of off-farm irrigation systems under Subcomponent A.1., which include: construction of new and improvement of existing  9 The World Bank Irrigation for Climate Resilient Agriculture (P179037) water intake structures and loading chambers or small reservoirs, grit removal works, and construction of water main and distribution networks from the intake structure up to the farm gates; and (ii) construction of efficient on-farm irrigation systems under Subcomponent A.2., which involve the construction and provision of resource water-efficient field application systems (e.g."
1628,"drip irrigation, sprinklers, micro sprinklers)."
1629,"Consulting services to be financed under the Project include the development of feasibility studies and detailed designs, the elaboration of environmental of and social instruments (Component A), as well as technical assistance and capacity building activities under Subcomponent A.3 and Component B, and consulting services related to the Project Management (Component C of the Project)."
1630,"Goods and non-consulting services: Under Component A, the Project will finance the equipment for improved control and regulation of water flow (such as motors, pumps, valves), and flow rate measuring devices for improved monitoring."
1631,"Besides that, the Project will finance goods and non-consulting services required for the Project Management such as: computers, equipment, office furniture, publicity services etc."
1632,"A procurement capacity assessment deemed PSI’s procurement arrangements as adequate, subject to a hiring a dedicated procurement specialist and additional training."
1633,PSI has a history of satisfactory management of procurement for World Bank-financed Projects.
1634,"However, for the implementation of the Project, PSI will need to hire a procurement specialist who is fully dedicated to the Project and has experience with the WB’s procurement procedures."
1635,"Additionally, the Bank will provide periodic training over the course of the Project to ensure that the procurement regulations are adequately applied."
1636,"Frequency of Procurement Supervision: In addition to prior review supervision to be carried out by the World Bank office, annual supervision missions will be carried out to visit the field and conduct post review of procurement actions."
1637, 0 The World Bank Irrigation for Climate Resilient Agriculture (P179037) ANNEX 2: Supplementary Project Details Irrigated Agriculture in Peru 1.
1638,Irrigated agriculture plays a fundamental role in Peru's development and has become increasingly important.
1639,"Irrigation is a key driver for economic growth as it improves agricultural production,89 thereby supporting rural employment and development, strengthening food security, and increasing resilience to climate change."
1640,"Even though irrigated land represents only 36 percent (2.6 million hectares)90 of all agricultural land, approximately two-thirds of the country's agricultural output91 is produced on irrigated land.92 2."
1641,"Irrigation, and agriculture in general, plays an important role in the region in relation to food security and the provision of a certain level of employment for the mostly poor rural population."
1642,"Adequate irrigation is critical for enabling farmers to cope with the climate-exacerbated occurrences of floods and droughts, to increase crop yields, and to grow higher value crops, both in terms of nutritional value and financial returns from their sale."
1643,"Irrigation also encourages farmers to harvest higher-value crops, which are generally more sensitive to water stress."
1644,Topographic Distinctions 3.
1645,Water resources and irrigation infrastructure vary throughout the country.
1646,Irrigation is well established in the Costa region but less so in the Sierra and Selva regions since.
1647,"Approximately 70 percent of cultivated land in the Costa is irrigated, allowing Peru to produce high-value crops that are exported to international markets."
1648,Most of the agricultural land in Peru’s Costa (along the Pacific Coast) is irrigated to sustain commercial agriculture.
1649,"Approximately two-thirds of the agricultural GDP is produced on Costa farmland.93 However, it is completely dependent on irrigation due to low levels of annual rainfall as agriculture would be much less productive without irrigation."
1650,"Overall, the availability of irrigation technology and cultivation high-value crops have had a major impact on Costa’s rural development, as the region has registered the strongest growth in agricultural productivity."
1651,"However, the inhabitants of the Costa suffer the full effects of ENSO; they are also affected by recurring droughts, periods without rain, and, to a lesser extent, high and extreme temperatures, forest fires, and strong winds."
1652,"Crops tend to achieve substantially higher yields in the Costa (than in the Sierra or Selva) due to improved access to irrigation, more widespread mechanization, greater crop diversification (including towards more high-value crops), larger farm sizes, and proximity to consumers and export markets."
1653,"In contrast, the Sierra and Selva regions are difficult to traverse, with isolated, remote communities (away from the Costa), thereby resulting in large development gaps."
1654,"Moreover, lower population densities and inadequate infrastructure in many regions of the Sierra and Selva, hamper the distribution of food and access to markets."
1655,Higher transportation costs also raise prices of agricultural products.94 6.
1656,The Sierra and Selva regions have abundant water resources contrasted by rudimentary irrigation systems .
1657,"In the Sierra and high-altitude areas of the Selva, where half of the rural population lives in poverty, only around 20 percent of the cultivated land is under irrigation, exposing agricultural production to shifts in rainfall patterns linked to climate change and variability.95 7."
1658,"In the mountains of the Sierra as well as the high-altitude zones of the Selva (Ceja de Selva), irrigation, when 89 The Bank’s Sierra Irrigation Subsector Project reported yield increases of 30 to 70 percent and net household income per hect are increases of 25 to 500 percent because of improvements in water availability and irrigation."
1659,90 INEI.
1660,“Resultados definitivos.
1661,IV Censo Nacional Agropecuario 2012.” Instituto Nacional de Estadística e Inform tica.
1662,Ministerio de A gricultura y Riego.
1663,"Lima, Peru."
1664,"91 Agricultural output is defined as the total value of crops produced in economic terms, although it has also been used to denote to (physical) crop yields."
1665,"92 For example, yields of irrigated crops are double those of rainfed (dryland) yields in Peru (FAO 2022)."
1666,93 IV Censo Nacional Agropecuario 2012.
1667,"INEI  94 Bergmann et al, 2021."
1668,"95 Lines in the Water: A Roadmap to Sustainable Development in an Uncertain Water Future, Peru Water Security Diagnostic, 2022)."
1669," 1 The World Bank Irrigation for Climate Resilient Agriculture (P179037) used, complements rainfall during the dry months."
1670,"There are rainfall distribution challenges in most areas of the Sierra region and parts of the Selva.96 Sierra and Ceja de Selva also face a climate with more extreme temperatures, high levels of soil erosion and fragmentation of farmland, difficult market access, and limited availability of water resources, among other factors."
1671,"In these water-stressed areas, only 11 percent of irrigated lands have efficient irrigation systems, most of which are primarily owned and managed by medium- to large-sized farms."
1672,"Low-income, smallholder farmers have been unable to convert to more efficient, modern irrigation systems due to high capital costs that prevent these types of investments."
1673,"In the Sierra, only about 20-30 percent of systems run on electricity, with the rest requiring high-cost diesel- powered pumps."
1674,Inequitable distribution of land ownership also impacts agricultural productivity.
1675,"In Peru, around 87 percent of land is owned by 5.5 percent of the population, mostly large-scale farmers owning more than 20 hectares97 while seventy- nine percent (79 percent) of producers own less than 5 hectares of land (mostly concentrated in mountainous areas), and 15 percent own between 5–20 hectares.98 These small- and medium-size producers practice traditional agriculture (extensive or subsistence) and make up 91 percent of the national Gross Value of Production (GVP).99 Project Description Details 9."
1676,At the heart of the Project is the implementation of 130 investment subprojects .
1677,These are expected to transform the current off-farm surface irrigation schemes used by small-scale family farmers into ‘technified’100 irrigation conveyance and distribution systems and installation of improved on-farm irrigation water application systems (Component A).
1678,The Project will also provide the necessary support to selected 130 FGs with the installation of the improved ‘technified’ irrigation systems (both off- and on-farm).
1679,Each of the 130 subprojects was identified and formulated through a participatory process in which the farmers were supported by the PSI with their proposed concept of a hydraulic blocks for the enhancement of efficiency and sustainability through technification.
1680,"Each of the 130 sub-projects’ irrigation schemes are organized into several hydraulic blocks, each consisting of approximately 60 hectares of land on average and serving around 60 farmers."
1681,"WUOs in Project areas – as water management-related entities – together with FGs, are included in planning and coordination to ensure that available water is distributed sustainably and effectively."
1682,"The farmers and water users in each hydraulic block are organized into newly created FGs (GGRTs) that help ensure, with the support of WUOs, that the water needs of each farmer are met and that the block remains in good condition."
1683,"The selection of the 130 hydraulic blocks where the subprojects followed a selection methodology that includes poverty levels, vulnerability to climate-exacerbating conditions, such as exposure to droughts or frost or beneficiaries’ plot size."
1684,"Each of the 130 subprojects has further met the eligibility criteria set forth in the NTIP’s guidelines, which includes ensuring land ownership certification, water rights licenses, access to markets, and a commitment to cost sharing."
1685,"Considering that the crop categories vary among Peru’s regions, the type of ‘technified’ irrigation syst em to be implemented in each of the 130 projects was determined based on the crop category and its profitability."
1686,"96 Most precipitation occurs between November and March, resulting in a large dry period with water deficits."
1687,97 Producers who own large tracts of land are located mainly on the coast and have modern intensive systems with pressurized irrigation.
1688,98 INEI.
1689,“Resultados definitivos.
1690,IV Censo Nacional Agropecuario 2012.” Instituto Nacional de Estadística e Inform tica.
1691,M inisterio de Agricultura y Riego.
1692,"Lima, Peru."
1693,gob.pe/web/DocumentosPublicos/ResultadosFinalesIVCENAGRO.pdf).
1694,99 PNUD; MINAM.
1695,Las Implicancias del Cambio Climático en la Pobreza y la Consecución de los Objetivos del Milenio.
1696,"Autor: Del Carpio, O. Informe preparado en el marco del Proyecto Segunda Comunicación Nacional del Perú a la Convención Marco de las Naciones Unidas sobre Cambio Climático."
1697,Lima: PNUD y MINAM.
1698,Programa de las Naciones Unidas para el Desarrollo – PNUD y Ministerio del Ambiente – MINAM.
1699,"100 ‘Technification’ entails conversion of open surface canals of the off -farm conveyance and distribution systems to (mostly) gravity-fed pressurized piped systems to prevent losses of water through seepage and evaporation, while removing the need for the use of energy through pumps (in areas where the altitude allows for gravity-fed systems)."
1700, 2 The World Bank Irrigation for Climate Resilient Agriculture (P179037) 12.
1701,"‘Technification’ includes provision of precision on-farm irrigation systems, such as sprinklers (including micro- sprinklers) and drip irrigation."
1702,"Along the Costa, the Project will install on-farm drip irrigation (given its high-level of water efficiency performance of more than 90 percent), while in the Sierra and Selva, in addition to drip systems, the Project will also promote sprinkler and micro sprinkler systems.101 Sprinkler systems are easier to operate and more economic than drip irrigation yet still increases water efficiency performance by 80 percent."
1703,"In the highland areas, the installation of sprinkler systems, are also expected to help with the climatic hazards – frost (heladas) and extremes heat."
1704,"The diagram below depicts a sub-project (hydraulic unit) managed by Water User Boards (JUs) overall as well as commissions, committees, and farmer groups."
1705,"Figure A 5: – Diagram of a Sub-Project (Hydraulic Unit) 101 Drip irrigation is a type of localized irrigation where water is led to the field through a pipe system, with drops of water delivered to plants at or near the root."
1706,"With sprinkler irrigation, water is led to a field through a pipe system, in which the water is under pressure, and artificial rainfall is created."
1707,The spraying is accomplished by using mechanized or non-mechanized sprinklers.
1708, 3 The World Bank Irrigation for Climate Resilient Agriculture (P179037) Sample of 8 Subprojects Used for Overall Project Analysis 13.
1709,"To conduct the calculations for GHG emissions, soil degradation, and the economic and financial assessments, the PSI team selected a sample of 8 sub- projects from different regions to be analyzed as a representative sample of all 130 sub-projects."
1710,"While these 8 sub-projects account for 5 percent (321.37 ha) of the total Project area, the geographic distribution of these 8 sub-projects provides adequate representation across the regions (from north to south) included in the total Project area (8,014.38 ha)."
1711,The following two tables provide requisite details on the sample of 8 sub-projects as per the following tables.
1712,Table A 7: Profile of selected subprojects.
1713,"Sub-Projects Average Altitude Main Soil Cultivated Number of # [representing Farmer Terrain Climate Irrigation System Crops (evaluated) (MASL) Type Area (ha) Beneficiaries Groups (GGRT)] Potatoes and Forage Oats (50% 1 Aprocondor Sierra Warm temperate dry 3,574 Lo Sprinkler 84.00 49 each) Rye Grass, Clover, and Purple 2 Atunmayo Sierra/Selva Warm temperate dry 2,925 Lo Sprinkler 78.03 167 Corn (33% each) Qoto Pucyo 3 Sierra Cool temperate dry 2,846 Lo Drip irrigation Avocado (100%) 38.52 46 Piscacucho Peas, Corn, and Potatoes (33% 4 Hyillaparac San Rafael Sierra Warm temperate dry 3,352 Lo Sprinkler 37.26 43 each) 5 Lateral 7 Costa/Sierra Tropical dry 202.89 SaClLo Drip irrigation Grapes (100%) 52.84 18 6 La Merced de Chaute Sierra/Costa Cool temperate dry 2,400 Lo Drip Irrigation Grapes (100%) 40.20 63 Comunidad 7 Campesina de Sierra/Selva Warm temperate dry 3,511 Lo Sprinkler Rye Grass and Trebol (50% each) 50.00 50 Llocllapampa 8 Achahueco Sierra Cool temperate dry 3,051 SaClLo Micro-Sprinkler Oregano (100%) 34.14 66  4 The World Bank Irrigation for Climate Resilient Agriculture (P179037) ANNEX 3: Project Map Figure A 6: Map of Project locations  5 The World Bank Irrigation for Climate Resilient Agriculture (P179037) ANNEX 4: Economic and Financial Analysis 1."
1714,A standard cost-benefit analysis (CBA) was performed to assess the financial and economic merit of the proposed Project and to quantify all incremental costs and benefits directly attributed to the Project.
1715,Identification of Costs and Benefits 2.
1716,The following table highlights the Project’s costs and benefits.
1717,"Due to the absence of information with reasonable reliability, there are a series of benefits the Project will promote that cannot be quantified."
1718,"Financial and economic benefits were quantified for important agricultural crops with the potential for the development of value chains: potato, purple maize, peas (vetch), rye grass, oats, clover, oregano."
1719,Quantifiable Project benefits are mainly linked to the additional income of producers who are impacted by the sub-projects (Component A).
1720,Table A 8: Cost and benefit identification.
1721,"Total costs Financial Benefits Economic Benefits Quantified Quantified ▪ Productivity increases per hectare (pea, peach, oat, ▪ Productivity increases per hectare (pea, rye grass, clover, oregano, and grape) Component A: peach, oat, rye grass, clover, oregano, ▪ Potential increment of cultivated area US$107.3 million and grape) ▪ Environmental benefits due to the implementation ▪ Potential increment of cultivated area of mitigation activities (fertilizers and pesticides use, Component B: associated with a decrease in equivalent carbon US$9.8 million emissions)."
1722,"Non quantified Component C: Non quantified ▪ The multiplier effect over the value US$13.6 million ▪ The multiplier effect over the value chain of selected chain of selected crops (maize, coffee, crops (maize, coffee, cotton, sugarcane) due to cotton, sugarcane) due to forward and Total: US$130.7 forward and backward production linkages."
1723,backward production linkages.
1724,"million ▪ The multiplier effect over other related sectors of ▪ The multiplier effect over other related the economy (transport, services) sectors of the economy (transport, ▪ Other environmental benefits, such as reduction of services) soil erosion Source: FAO elaboration, 2022."
1725,Financial Analysis 3.
1726,"To verify the financial viability of Project activities, a CBA was applied to eight sample sub-projects part of Component A [considered representative of all sub-projects to be implemented]."
1727,The flow of annual incremental net benefits for the sample projects was calculated for a period of 20 years (considering a financial discount rate of 12 percent).
1728,"Selection of sub-projects incorporated the following parameters: ▪ The location in 3 project regions (2 located in the north, 3 in the center, and 3 in the south)."
1729,"▪ Different types of crops (potato, forage oats, purple corn, avocado, peas, corn, grapes, fruit trees, associated grasses, oregano)."
1730,"▪ Various types of advanced irrigation systems (drip, sprinkler, micro sprinkler)."
1731,"Each sub-project considered different crops representative of dominant production schemes, including potato, purple maize, peas (vetch), rye grass, oats, clover, oregano, and grape."
1732,"These eight crops comprise the cropping systems that will be improved through the Project’s implementation, determining the financial profitability of each subproject."
1733,"For each crop, a productive on-farm model was developed based on the information provided by the PSI to represent the ‘with’ and ‘without project’ scenarios."
1734, 6 The World Bank Irrigation for Climate Resilient Agriculture (P179037) 5.
1735,"It is expected that the Project will improve both yields and, for some crops, the number of harvest cycles per year through investments in efficient irrigation systems, sustainable agronomic practices, and institutional strengthening for effective and sustainable irrigation services that will govern them."
1736,"Existing on-farm cultivation techniques are assumed to be replaced by the introduction of sustainable agricultural practices (known as climate-smart, conservation, or regenerative agriculture) in Project areas."
1737,"Additionally, a water fee per hectare per year is considered in the models for the O&M of irrigation systems."
1738,The table below presents yields and output-price assumptions for the financial analysis.
1739,"To calculate these values, the ‘without project’ scenario was compared against the ‘with project' scenario."
1740,"The net present value (NPV) under the ‘without project’ scenario considered the current yields of each crop, the number of cultivated hectares, the sales prices, and the percentage of produce that is sold in the Project's intervention areas."
1741,"In the ‘with project’ scenario, the analysis considered the increase in irrigation efficiency and the impact of applying good agricultural practices when projecting yields."
1742,It is assumed that the investment will enhance the efficient use of natural resources and reduce the use of external inputs.
1743,"It is assumed that the level of chemical inputs’ use (fertilizers, herbicides, and pesticides) will decrease by 5 percent."
1744,"Table A 9: Yields and output price assumptions Crop Without Project With Project Yield (t/ha) Harvest Yield Harvest Output cycles per (t/ha) cycles per price year year (USD/t) Potato 20 1 40 2 66 Purple Maize 7.5 1 10 2 105 Peas 6.5 1 9.5 2 189 Rye Grass 60 1 70 3 18 Oats 90 1 140 2 7 Clover 12 1 18 3 38 Oregano 2.5 1 3.5 2 558 Grape* 20 1 28 1 395 *Yields when at full production Source: FAO elaboration, based on data from PSI, 2022."
1745,The financial analysis modeled the financial benefits at the sub-project level considering the corresponding crop to each sub-project.
1746,"The model calculates incremental net benefits over a period of 20 years, holding constant the input and output prices to capture the effect of the change in production."
1747,Incremental net benefits were modeled first at the level of the eight sub-projects.
1748,"Financial viability was positive for all eight subprojects, with financial internal rates of return (FIRR) between 12.7 percent and 25.2 percent."
1749,"As shown in the table below, profitability indicators are the result of the product of the agricultural output price, yields (magnitude and number of cycles per year), and cultivated area, less input, labor, and management costs."
1750,Table A 10: Financial indicators at sub-project level Net income Net Present Subproject General Description Financal (US$/year) Value Internal Rate (US$/year) Sup-Project Composition Cultivated Without With of Return Incremental 12% Name of Production Area (ha) Project Project (FIRR) 20 years 50% potato 1.
1751,"Aprocondor 84 32,022 202,460 170,437 16.0% 224,202 50% oats 2."
1752,"Atunmayo 33% rye 78.03 26,845 166,084 139,239 17.5% 237,306  7 The World Bank Irrigation for Climate Resilient Agriculture (P179037) 33% clover 33% maize 3."
1753,"Qoto Pucyo 100% avocado 38.52 202,312 293,816 91,504 12.7% 26,776 Piscacucho 33% peas 4."
1754,"Huillaparac San 33% maize 37.26 15,086 84,480 90,435 21.0% 220,603 Rafael 33% potato 50% grape* 5."
1755,"Lateral 7 52.84 294,895 424,995 130,100 19.1% 315,068 50% avocado* 6."
1756,"La Merced de 100% grape* 40.20 237,569 340,032 102,462 19.9% 274,375 Chaute 50% rye 7."
1757,"Llocllapampa 50 24,612 143,500 118,888 25.2% 366,817 50% clover 8."
1758,"Achahueco 100% oregano 34.14 34,065 106,255 72,190 14.9% 74,098 Economic Analysis 9."
1759,"A cost-benefit analysis was performed to assess the economic viability of the production models proposed by the Project, considering economic prices (shadow prices) and economic value of carbon."
1760,The table below presents the conversion factors considered in this analysis.
1761,Table A 11: Economic conversion factor Official Exchange rate (USD/S) 0.2631 Shadow Exchange rate (USD/S) 0.2841 Standard Conversion Factor 1.08 Shadow wage rate factor – unqualified labor 0.42 Output/Input conversion factor 0.85 Social price of Carbon (USD/tCO2eq 7.17 Source: InviertePE.
1762,"This methodology calculates the flow of annual incremental net benefits over a 20-year period, considering an economic discount rate of 8 percent (which includes inflation and risks), compatible with the maturation time of principal investments."
1763,The total cost of the Project is estimated at US$126.0 million.
1764,"For a 20-year horizon, the incremental economic benefit for the entire Project is estimated to be US$60.6 million, with an economic internal rate of return of 17.2 percent (representing the net present value [NPV] of agricultural production)."
1765,"The economic analysis shows positive profitability indicators, with economic internal rates of return (EIRR) between 13.2 percent to 21.6 percent."
1766,Table A 12: Economic Indicators Net income Net Present Agricultural Model (US$/year) Economic Value Internal Rate of (US$/year) Composition of Cultivated Without With Sup-Project Name Incremental Return (EIRR) 12% Production Area (ha.)
1767,"Project Project 20 years 50% potato 1 Aprocondor 84 38,682 204,430 165,747 13.7% 419,071 50% oats 33% rye 2 Atunmayo 33% clover 78.03 30,622 152,858 122,236 14.5% 372,264 33% maize  8 The World Bank Irrigation for Climate Resilient Agriculture (P179037) 3 Qoto Pucyo 100% avocado 38.52 199,703 285,514 85,810 9.9% 99,059 Piscacucho 33% peas 4 Huillaparac San 33% maize 37.26 19,575 89,004 99,833 21.6% 435,833 Rafael 33% potato 50% grape* 5 Lateral 7 52.84 290,526 413,957 123,431 15.8% 441,066 50% avocado 6 La Merced de 100% grape* 40.20 437,473 620,401 182,927 16.7% 384,096 Chaute 50% rye 7 Llocllapampa 50 24,207 136,471 112,264 21.1% 480,064 50% clover 8 Achahueco 100% oregano 34.14 36,745 108,490 71,745 13.2% 169,872 11."
1768,"For the general economic analysis of the Project, economic flows were extrapolated."
1769,Benefits across the total Project area were extrapolated from the cropping composition and relative size of each of the eight subprojects.
1770,The subprojects represent the relative distribution of cropping area for each of the production models within the total Project area.
1771,"Net incremental benefits were summed across each of the production models, and then multiplied by a scaling factor, defined as the share of the total Project area that these subprojects represent."
1772,"In this case, the subprojects cover a total of 5.19 percent of the total Project area (8,014.38 ha), with a scaling factor of 19.27."
1773,"The implementation of the selected subprojects would allow for the recovery of water equivalent to 23 percent of the area irrigated from these subprojects (1,880 hectares)."
1774,The value the volume of water recovered in economic terms was included in the flow of incremental benefits and costs of this equivalent area.
1775,"The adoption of precision irrigation as well as sustainable agronomic practices promoted by the Project, will boost the productivity of the agriculture undertaken in the subprojects’ areas and is expected to free up water for other uses or to be returned to the environment (return flows to surface water bodies as well as groundwater recharge."
1776,"For this purpose, an estimation of the current situation (‘without project’) in terms of water consumption and possible return flows, with the aim of estimating how much efficiency gains could be ‘internalized’ through intensification and potential expansion of irrigated areas (see the technical analysis below for further details)."
1777,Incremental economic benefits from the reduction of emissions and carbon sequestration were accounted for a period of 20 years.
1778,"A constant shadow price of US$7.17/tCO2, following the requirement of the Government of Peru."
1779,"Over the Project duration of 20 years, the Project is expected to lead to a net carbon reduction of 111,258 tCO2-eq."
1780,"The Project is also expected to provide a reduction of 5,562 tCO2-eq per year (see Climate Change and Greenhouse Gas Accounting)."
1781,"To quantify the resilience benefits, the economic assessment evaluated the productive losses (with- and without-project scenarios) from temperature changes and changes in water availability under water scarcity scenarios."
1782,"To ensure the long-term robustness of the economic behavior of the Project, a sensitivity analysis was performed to evaluate how the economic indicators of the overall Project changes with a variation of key variables: (i) reductions in yield; (ii) delays in benefit generation; (iii) cost overruns; (iii) changes in the shadow price of carbon.102 The table below shows that the Project’s overall NPV presents a positive economic return even when considering a delay in benefits’ generation of 3 years, significant cost overruns, or a 5 percent reduction of expected benefits."
1783,This points to the robustness of the Project.
1784,"102 Forthe Sensitivity Analysis it has been simulated the economic profitability indicators considering the shadow price of carbon proposed by the World Bank, 2017."
1785,"Guidance Note on shadow price of carbon in economic analysis: a range of US$40-80 per ton of CO2eq, with an annual incremental rate of 2.25 percent."
1786,This shadow price of carbon is consistent “with achieving the core objective of the Paris Agreement of keeping temperature rise below 2 degrees”.
1787,  9 The World Bank Irrigation for Climate Resilient Agriculture (P179037) Table A 13: Sensitivity Analysis.
1788,"Source: FAO elaboration, 2022."
1789,"Economic indicators Net Present Variable Variation Internal Rate Value (million of Return US$) -5% $49.60 15.56% Reduction in -10% $38.59 13.93% expected yield -15% $27.59 12.28% 1 year $44.3 13.9% Delays in benefit 2 years $29.3 11.6% generation 3 years $15.3 9.8% 10% $50.3 15.0% Cost overruns 20% $40.0 13.1% 30% $29.7 11.6% US$80 t/CO2eq, annual incremental rate of 2.25% $84.7 21.3% Shadow price of US$40 t/CO2eq, annual incremental rate of 2.25% $71.7 19.0% carbon US$0 t/CO2eq $58.6 16.8% 15."
1790,"In addition, a scenario analysis was performed under a pessimistic scenario to evaluate the economic performance of the Project: reduction of 10 percent of the expected yield in with project situation, cost overruns of 10 percent of the investments, a shadow price of carbon US$0/t CO2eq, and a delay in the implementation of the Project that would permit the generation of one-year benefits."
1791,"Under these conditions, the Project continues to present positive economic- profitability indicators, with an incremental net-present value of US$12.4 million and an internal rate of return of 9.6 percent."
1792,"These results represent a robust performance in economic terms and, considering the productive and climatic impacts, create societal economic value."
1793,"Table A 14: Scenario Analysis Variable Pessimistic Scenario Neutral Scenario Optimistic Scenario Expected yields of Reduction of 10% of the Expected yields are achieved in Expected yields are increased in 10% crops expected yield with project scenario in with project scenario Delay in 1 year in benefit Benefit generation No delays in benefit generation No delays in benefit generation generation Investment costs 10% cost overruns No cost overruns No cost overruns Shadow price of US$ 7.17 tCO2eq US$ 80 tCO2eq US$ 0 tCO2eq carbon annual incremental rate of 0.0% annual incremental rate of 2.25% Economic Indicators Net Present Value US$14.2 million US$60.6 million US$106.7 (million US$) Internal Rate of 9.8% 17.2% 24.7% Return Source: FAO elaboration, 2022."
1794,The FG needs to charge a rate higher or equal to this cost to properly maintain and operate the system and reach financial viability.
1795,"The FGs and WUOs will benefit from the TA activities planned under the projects to improve the design of tariffs, the commercial and operational efficiency."
1796,"The financial sustainability of the irrigation systems to be financed under the Project will be attained only if the FGs charges their members a rate higher or equal to the cost of operating and maintain the systems, which for the sample of 8 subprojects results in S/571 per hectare per year in average."
1797,"The charge varies among the subprojects from S/190 in Atunmayo to S/1,230 per ha per year in Llocllapampa."
1798,This charge  0 The World Bank Irrigation for Climate Resilient Agriculture (P179037) will be in addition to the tariff charged by the WUOs.
1799,"Therefore, each farmer will need to pay the rate charged by WUOs in addition to the charge set by the FG for improving the irrigation systems."
1800,"However, the charges will differ among the FG according to the type of irrigation system and tariff charged by the respective WUO."
1801,"Both charges would be in average S/673 (US$ 177) per hectare per year, which seems achievable as the financial evaluation showed."
1802,Table A 15: Costs of operating and maintaining the irrigation systems.
1803,"O&M/year O&M/ha/year Subproject Name # Farmers Area (ha) (PEN) PEN/ha/yr 1 Aprocondor 49 84 19,981 238 2 Atunmayo 167 78 14,826 190 3 Qoto Pucyo Piscacucho 46 39 26,180 680 4 Huillaparac San Rafael 43 37 44,000 1,181 5 Lateral 7 18 53 39,366 745 6 La Merced de Chaute 63 40 10,191 254 7 Llocllapampa 50 50 61,500 1,230 8 Achahueco 66 34 21,200 621 Total 502 415 237,243 572 17."
1804,"The financial performance of the WUOs is generally poor due, among other factors, to low tariffs and revenue collection rates."
1805,"According to a diagnostic of the WUOs financed by PSI103, 62.5 percent of the WUO has an operating cost recovery ratio lower than 50 percent, and 12.5 percent lower than 75 percent."
1806,"On top of this, the revenue collection rate is between 70 to 90 percent (La Costa shows better rates of 80 to 90 percent, while la Sierra and la Selva show rates of 70 to 80 percent)."
1807,"Only 12 percent of the WUOs disconnect the service in case of non-payment, the rest either send reports to local water authorities or negotiate alternatives for payment."
1808,"The average tariff charged by WUOs in 2017 was S/198 per user per year, equivalent to S/101 per hectare per year."
1809,"If this tariff remains constant, the total charge to be paid by the farmers must be at least S/673 per ha per year, which includes the operating cost of the irrigation system plus the charge made by WUOs to provide the water."
1810,Estimation of water saved from efficiency measures and usable for productive purposes 14.
1811,"According to PSI analysis, the current efficiency of agricultural water use (measured by crop water use divided by water withdrawals) is only 35 percent."
1812,"The proposed investments, through the improvement of the off-farm infrastructure and the installation of efficient on-farm irrigation systems (such as multi gates, drip, micro sprinkler, or sprinkler irrigation), will enable farmers to use less water and other inputs to their crops, improving irrigation performance, boost agricultural productivity, and increase agricultural water efficiency from 35 to 80 percent."
1813,"The adoption of precision irrigation, promoted by the Project, is expected to boost the agricultural productivity of the subprojects."
1814,"Still, there is a need to estimate how water use efficiency measures will free up water for other uses without affecting return flow to the environment as recharge or drainage."
1815,"For this purpose, an estimation of the current situation (without project) was carried out (in terms of water consumption and possible return flows), with the aim of estimating the efficiency gains that could be ‘internalized’ through agricultural intensification and potential expansion of irrigated areas without affecting return flow that might be used by other users downstream."
1816,"Based on the results, the amount of water saved from efficiency measures at a local scale depends on the context and characteristics of each subproject."
1817,Increasing irrigation efficiency delivers the presumed expected benefits of increased 103PSI.
1818,"Arrese, Ricardo León."
1819,Diagnóstico del Estado Situacional de las Organizaciones de Usuarios de Agua (OUAs).
1820,Estudio Socio Económico de los miembros (productores agrarios y/o usuarios) de las OUAs y Criterios de Priorización de las JUs.
1821,Enero 2018  1 The World Bank Irrigation for Climate Resilient Agriculture (P179037) water availability overall.
1822,"But to properly account for the expected benefits from efficiency gains, and to avoid negative downstream consequences by reduced minimal return flow, interventions aimed at increasing irrigation efficiency must be accompanied by effective regulatory instruments, robust water accounting, and continuous monitoring of related system parameters, and enforcement of regulations to manage water use."
1823,"For this purpose, the Project will promote the involvement of the Local Water Authorities (ALA) to monitor and follow up on the different Project interventions."
1824,"To monitor the PDO level indicators, the Project will include, as part of the monitoring framework, different actions to measure water flows and volumes in specific locations and a temporary basis to calculate the following: ▪ the increase of operational efficiency of each irrigation system, and ▪ the increase in water productivity (US$/m3) measured as farm income per cubic meters of water consumed, or (kg/m3) measured as crop yield per cubic meters of water consumed."
1825,The proposed investments are expected to enhance resilience to extreme events and other climate change impacts and improve the performance of irrigation and drainage services with positive impacts on the adaptation and mitigation agenda.
1826,The above-mentioned water balance analysis clearly reflects that reducing water deficits in the projects will enhance the systems' resilience.
1827,"Moreover, the activities focused on strengthening the management capacity of WUOs and Farmer’s Groups to improve the O&M of a water delivery system would also allow an increase in operational efficiency of irrigation canal systems managed by participating WUOs by 10 percent (operational efficiency measures a reduction in physical water losses in canal systems)."
1828,"The Project's immediate benefits are linked to the increase in productivity associated with the extension of efficient irrigation systems over 8,014.38 hectares of agricultural land."
1829,"With access to efficient irrigation systems, farmers are expected to be able to grow higher-value crops, utilize water more efficiently, reduce labor costs, and better withstand droughts and erratic rain patterns."
1830,"In addition, by supporting the implementation of FGs' business plans, the Project will directly increase farmers' capacity to market and sell their products effectively."
1831,"In addition to the immediate or direct benefits related to the improvement in efficiencies, the Project will generate, among others, the two following additional benefits: (i) reduction in degraded soils: efficient on-farm irrigation systems will reduce soil erosion, particularly in the Sierra region with high slopes; and (ii) potential expansion or productive intensification based on improved water use efficiencies."
1832,These were considered for the GHG analysis and the economic and financial assessment.
1833, 2 The World Bank Irrigation for Climate Resilient Agriculture (P179037) ANNEX 5: Building Resilience through Combination of Irrigation and Agronomic Measures 1.
1834,The integrated approach of the Project coordinates (i) improving water services through technified irrigation and (ii) agricultural water productivity through enhanced management of available water and soil resources to counter water-related risks and increase the resilience of agricultural production systems.
1835,This approach is adopted to increase the resilience of agricultural production (particularly to the impacts of climate change) and improving livelihoods of beneficiaries impacted.
1836,Such an approach enables the combination of measures for improving the technological efficiency of irrigation water management with maximizing use of the natural resource on the receiving end of water supply – soil.
1837,"To that end, a portion of the TA to be provided to producers (through FGs) in the 130 sub-projects (sub-component A.3) includes (i) improving the efficiency of water management at the parcel level and (ii) agronomic management for both annual and perennial crops."
1838,Agronomic management through incorporation of climate smart and regenerative practices (as part of the TA) are expected to allow for greater efficiency in the overall water management in the sub-projects and greater scale of impacts (beyond the installation of high efficiency on-farm systems and training farmers in their use).104 3.
1839,"To enable such a comprehensive approach in each sub-project, TA module 2 will be implemented to: (i) strengthen the capacities of producers in the management of prioritized crop(s) in each sub-project; (ii) implement new packages for recommended techniques; (iii) develop adequate management in the pre- and post-harvest stages; and (iv) reduce environmental impact through the implementation of good agricultural practices."
1840,All the above seek to generate behavioral change in producers when it comes to the management of their respective productive units by promoting and developing improvements in the production of crops to obtain improvements in productivity and profitability.
1841,The above is in-line with the goals the 3rd objective of the National Agricultural Policy (2021-2030) of Peru of improving the management of natural resources for sustainable agricultural production.
1842,"This objective is to be accomplished through better management of natural resources used in cultivation (i.e., soil and water) and reducing the vulnerability of production systems to climatic events (with an emphasis on family farming)."
1843,"Attention to soils, to which irrigation water is applied, represent a vital aspect in efficient water management and crop production."
1844,"While climatic factors ultimately control plant-water relationships, soil moisture plays a decisive role in determining the yield potential of crops."
1845,Strategically using soils as reservoirs that complements irrigation can lead to improved and well-timed irrigation scheduling that reduce reliance on irrigation water applications on-farm.105 6.
1846,Soil is the plant’s water reservoir.106 Soil water dynamics play a critical role in deciding how much water is needed for irrigation.
1847,"Globally, about two-thirds of all fresh water is held in soil (known as ‘green water’107), representing the largest terrestrial water reservoir (accessible to plants).108 In contrast, approximately one-third of the fresh water is stored in rivers, lakes, aquifers (‘blue water’) and can be directly abstracted for human use, including irrigation (the largest freshwater consumer)."
1848,Combining soil moisture conservation with irrigation allows for greater overall on-farm water use efficiency.
1849,Combining soil moisture conservation with irrigation practices allows for greater overall on-farm water use efficiency.
1850,"It also helps increase the resilience of crop cultivation, particularly given climate change concerns, by sustaining 104 The 2nd TA module is to be implemented to: (1) strengthen the capacities of producers in the management of prioritized crop(s) in each sub-project; (2) implement new packages for recommended techniques; (3) develop adequate management in the pre- and post-harvest stages; and (4) reduce environmental impact through the implementation of good agricultural practices."
1851,105 Soil water thresholds are used to determine when and how much irrigation is needed.
1852,"For example, irrigation is typically triggered when soil moisture content is depleted to a point where plants experience water stress and potential growth (and yield) reduction."
1853,106 Soils regulate water by acting as a sponge to hold water in plant available form.
1854,Soil moisture plays a decisive role in determining the yield potential of crops by regulating the moisture levels in the plant.
1855,107 Green water is the precipitation that is stored as soil moisture and eventually returning to the atmosphere via transpiration and evaporation.
1856,"108 Conceptually, the freshwater cycle can be partitioned into two parts – ‘green’ and ‘blue’ water – in accordance with the hydrological processes."
1857,B oth ‘types’ of water are involved in food production.
1858, 3 The World Bank Irrigation for Climate Resilient Agriculture (P179037) the demands placed on them to grow food.
1859,Crops can also better withstand climatic stresses of insufficient or excessive water availability (and extremes such as droughts and floods) and help mitigate these stresses.
1860,"Moreover, safeguarding soil health is also one of the best ways to cultivate plants that are more resistant to pests and diseases, while being robust in adverse conditions (such as drought, heavy rain, or frost)."
1861,On-farm agronomic practices directly impact soil health.
1862,"Practices that are part of climate-smart, regenerative, and conservation agriculture are important for keeping the soil water moisture109 in an optimal state for plant growth."
1863,"These practices affect the soil structure and porosity, the water infiltration rate and moisture holding capacity of soils, the diversity and biological activity of soil organisms, and plant nutrient availability – all of which sum up to efficient water use and long-term farm productivity."
1864,"Such agricultural techniques are interrelated and include (a) planting cover crops, leaving crop residue and mulching, and (b) minimum or zero tillage; (ii) increasing diversity of crops and soil microorganisms by (a) crop rotations, intercropping, and managed grazing, and (b) adding organic soil amendments.110 9."
1865,"Thus, in addition to irrigation water application on fields, ensuring productive and resilient agriculture111 requires changes in the management of natural resources that support it – both soil112 and water – and ensuring greater efficiency in their use.113 Practices that are part of climate-smart, regenerative, and conservation agriculture are important in keeping the soil water content in an optimal state for plant growth."
1866,"The suite of agronomic techniques (described above) aids in sustainable soil and farm management in the long run by keeping the soil healthy and improving yields, respectively."
1867,"They allow for a decrease in water supply to irrigation, thereby maximizing the impact of the water used."
1868,"In summary, strategies to reduce crop water use include (i) maintaining healthy, water-absorbent soils and (ii) utilizing low-volume irrigation systems (e.g., drip irrigation, sprinklers, and micro sprinklers)."
1869,"The above-listed agronomic practices also benefit the wider catchment by improving land-water dynamics, such as rainfall runoff, infiltration, water consumption, and water quality and improving resilience to climate variability and change."
1870,"To that end, water management at a smaller scale must be embedded in the larger frame of catchment resource management."
1871,Building resilience is inextricably linked to the condition of ecosystems in which irrigated agriculture is conducted.
1872,"Healthy, well-functioning ecosystems enhance natural resilience to adverse impacts of climate change and reduce the vulnerability of people."
1873,"Agricultural resilience can deliver measurable economic value in terms of cost-savings and risk reduction to farmers (and, by extension, their communities)."
1874,"Farmers can reduce their input costs and increased their bottom lines by choosing to invest in soil health.114 As a result, more people can be fed at a lower cost, which is a major factor in alleviating the global food crisis."
1875,"Ultimately, the time and effort invested in regenerative agronomic practices at the outset will pay off long-term."
1876,"Moreover, better land and water management strategies at the farm level can also enhance carbon storage in soils, thereby contributing to the mitigation of climate change."
1877,"After the oceans, soils are the greatest carbon sink.115 109 Soil moisture is the amount of water in the in the unsaturated part of the soil subsurface (within the active layer, typically the top 1–2 meters) and is the main source of water for agriculture and natural vegetation."
1878,"110 This entails protection of soil from disturbance by tillage, as wind and water erosion, and compaction."
1879,"By maintaining soil structure, these practices reduce soil erosion as well as its compaction."
1880,"111 Resilience can be considered across multiple scales, from individual fields to agricultural landscapes and beyond, encompassing environmental, economic, and social dimensions (Walker & Salt, 2006)."
1881,"112 Soil is comprised of 4 components: (i) water (as a solution of salts), (ii) air and other gases, (iii) organic matter (residue from plants, animals, bacteria, etc."
1882,"), and (iv) minerals and nutrients."
1883,"113 A key goal in this regard is addressing vulnerability of agro-ecological systems, as determined by exposure (degree of stress), sensitivity (e.g., crop responsiveness to climate change), and adaptive capacity of producers (Webb et al, 2017)."
1884,"114 Irrigation water productivity, as a ratio between the marketable yields and irrigation amount used during a growing season, can be used to determine economic profit."
1885,"115 Lal, R. 2011."
1886,Sequestering carbon in soils of agro-ecosystems.
1887,"Food Policy, 36: S33-S39."
1888, 4 The World Bank Irrigation for Climate Resilient Agriculture (P179037) ANNEX 6: Climate Change Adaptation and Mitigation Efforts of the Project 1.
1889,"Peru is susceptible to natural disasters including droughts, floods, frost, and landslides, which are expected to be exacerbated by climate change."
1890,This becomes particularly challenging during more pronounced dry seasons when water is needed for the irrigation of crops.
1891,"A preliminary screening for climate change and disaster risks was conducted for the Project's two main components, and the Project's overall risk rating was found to be moderate."
1892,"The identified risks included droughts, whose frequency and intensity may be increased by climate change, possibly threatening to water supply services."
1893,"Climate change might also reduce water generated by glacier melts, which act as a buffer to provide water during droughts."
1894,"Climate change can also lead to more intense El Niño events, which in turn leads to flood and mudslide116 risks."
1895,"As the agriculture sector in Peru is entering a more turbulent phase of increased risk and uncertainty, production systems, if not adapted,117 may suffer from more frequent and substantial crop yield losses due to climate change impacts."
1896,The Project includes measures to mitigate and adapt to climate change.
1897,Appropriate interventions are to be selected carefully to match specific conditions in each sub-project.
1898,"The interventions include rational management of irrigation and other practices, which will contribute to reducing GHG emissions; increasing carbon sequestration; eliminating the need for energy; reducing soil erosion and loss; and alleviating the impact of low temperatures, water scarcity (including droughts), and landslides."
1899,The paragraphs below summarize the Project’s activities aimed at addressing these issues.
1900,"The Project's emphasis on implementing energy- and water-efficient irrigation systems, increasing water storage, and strengthening water resources management is fully aligned with Peru's NDC and NAP priority actions ."
1901,All activities under the program are on the Universally (Paris) Aligned list.118 The Project is also aligned with the public investment recommendation of Peru’s Climate Country Diagnostic Report’s (CCDR) to improve access to efficient irrigation systems to build resilience in the agriculture sector and boost economic growth while protecting vulnerable populations.
1902,"Peru's CCDR also stresses the importance of adaptation to water-related shocks given the country’s significant spatial and temporal rainfall imbalances and uneven development patterns across its territory (World Bank, 2022)."
1903,Adaptation measures 2.
1904,"The main climate-related risks identified in the project area are droughts, floods, and frost."
1905,The project aims to address these climate change vulnerabilities through investments to improve the existing off-farm and on-farm irrigation systems as an adaptation measure.
1906,These infrastructure investments will ensure the integration of climate-resilient design to enhance resilience against climate change-exacerbated floods and droughts.
1907,Some measures are elaborated below.
1908,"Most of the project areas are based in the Sierra, which experiences significant climate variability – ranging from exposure to high temperatures (and extreme heat) to extremely cold and freezing temperatures (known as heladas)."
1909,"It is estimated that nearly 70 percent of the 130 subprojects financed by the Project are located over 2,000 msl.119 Between June and August, these areas are exposed to temperatures near or below freezing."
1910,Irrigation systems can be used to protect crops from frost injury.120 Sprinkler irrigation systems represent one of the most economical and effective means of protecting crops from frost damage.
1911,Availability of low-temperature alerts and adequate management of ‘technified’ irrigation is expected to help producers attenuate the negative impacts of low temperatures.
1912,"However, use of irrigation for frost protection must be carried out in a specific way to avoid further damage to crops."
1913,The Project also ensures provision of adequate water storage to attenuate climate change impacts .
1914,"Reservoirs that supply pressurized water to farm irrigation networks (within each sub-project) capture water from a micro-watershed or 117 Improved water management is usually associated with adaptation to climate change, not mitigation (unless it results in a significant reduction in GHG emissions during the crop production process."
1915,"118 After the ratification of the Paris Agreement, Peru validated six action objectives and targets for reducing vulnerability in agriculture."
1916,"119 In the sample of 8 subprojects, maximum altitude ranges between 2,533 and 3,574 MASL and minimum altitude ranges 2195 and 3463 MASL."
1917,120 The heat released by irrigation water prevents ice from forming inside the plant tissue.
1918,"In contrast, when soils are dry, more air spaces are created that inhibit heat transfer and storage."
1919, 5 The World Bank Irrigation for Climate Resilient Agriculture (P179037) a canal from a river.
1920,"During periods of insufficient rainfall (e.g., in the highland parts of the country), the risk of insufficient water availability for irrigation at the desired and recommended levels can be attenuated by water available in reservoirs."
1921,"Considering better management of irrigation water and soil protection practices, the Project will contribute to reducing soil erosion and loss."
1922,"The Project’s activities of implementing precision irrigation systems and investment into technical assistance for improved agronomic practices (i.e., climate smart, conservation, regenerative agriculture)121 is expected enable the recuperation of soils degraded by water erosion (in approximately four years)."
1923,"Additionally, the risk of intense low-duration precipitation in some subproject areas – causing floods – is to be protected with adequate vegetation the immediate area of water recharge and the surrounding reservoirs."
1924,Mitigation measures 6.
1925,"Taking advantage of topographic elevation for off-farm irrigation investments allows the introduction of gravity- based, pressurized water conveyance and distribution—thereby eliminating the need for electricity or diesel to run the water pumps."
1926,"Additionally, the flow of water to the fields purely based on gravity will avoid GHG emissions while conveying, distributing, and delivering water to farms in a highly efficient manner."
1927,"The Project’s activities are also foreseen to contribute to the reduction of emissions: (i) reduction of the use of inputs (fertilizers, fungicides, and herbicides) by 5 percent; (ii) recovery of soils degraded by water erosion in approximately four years; (iii) reforestation (living fences around water sources corresponding to approximately a total of 20 hectares)."
1928,"The Project’s activities establishing pastures,122 tree crops, 123 and of forested areas surrounding the reservoirs in each subproject are expected to contribute to carbon sequestration through vegetation."
1929,The expected tree-planting activities and agronomic practices are expected to enhance the soil and vegetation carbon stock to mitigate climate change impacts.
1930,Approximately 1 to 2 percent of the land in the immediate surrounding area of the 130 reservoirs124 is expected to be reforested.
1931,Tree crops sequester carbon in their main body and transfer it to the soil through their roots.
1932,"Additionally, the beneficial agronomic practices to be introduced on-farm (through TA under subcomponent A.3) are expected to contribute to carbon sequestration.125 Lastly, more frequent pasture rotations with sprinkler irrigation provided year-round (for more pasture growth) leads to more carbon sequestered."
1933,"In addition to reducing the need for irrigation water, the adoption of beneficial agronomic practices (that improve soil health) typically also leads to reductions in the application of inputs such as fertilizers and pesticides, resulting in reductions of GHG emissions."
1934,Soils of good quality are key to a resilient agro-ecologic systems.
1935,Long-term sustainability of agricultural systems requires ensuring that soils stay productive.
1936,Healthy soils function as sponges by being better able to absorb rainfall and hold onto moisture in times of insufficient rain.
1937,This can improve the resilience of crop yields to variable rainfall and lower the need for irrigation.
1938,Soils and their management can also affect the incidence of meteorological droughts126 and floods.
1939,"It is estimated that, in Peru, the efficiency of application of granulated fertilizers is approximately 30 percent."
1940,"Annual and perennial crops are inefficiently fertilized with nitrogen compounds, which emit nitrogenous gases, due to prevalent application methods."
1941,Inadequate application of fertilizers also causes loss of applied nutrients.
1942,Emissions of nitrogenous 121 Sound agronomic practices include context-appropriate in-field soil and water management techniques and crop choices.
1943,"122 Pasture areas, particularly those with brachiaria and alfalfa, have deep root systems and sequester carbon."
1944,Brachiaria (Brachiaria brizantha L.) is a perennial grass (also known as bread grass) mostly used for pastures under continuous or rotational grazing.
1945,"Bread grass is also valuable for cut-and-carry feeding, hay, and silage."
1946,"Alfalfa (Medicago sativa L.) is a perennial herbaceous legume with high nutritional quality, yields, and adaptability."
1947,It represents a major source of protein for livestock.
1948,123 The net effect will also depend on crop mix in each subproject.
1949,"124 Each of the 130 reservoirs is on an area of approximately 500 to 1,000 square meters."
1950,"125 Using data from the eight subprojects (not including carbon sequestration from pastures and fruit trees), it was estimated that the implementation of precision irrigation systems and the TA for improved agronomic practices will allow the recuperation of the percentage of degraded soils by water erosion in approximately four years."
1951,"126 For example, addition of organic matter to increase soil water holding capacity reduces drought risk."
1952," 6 The World Bank Irrigation for Climate Resilient Agriculture (P179037) gases are expected to diminish substantially with adopted usage of drip irrigation (e.g., fertigation).127 Drip irrigation is expected to provide a triple benefit of a better uptake of nutrients by plants, lower fertilizer usage, and reduced emissions of GHGs, thereby contributing to increased crop yields and potentially higher incomes."
1953,Alignment of the Project with the Paris Agreement and Impacts on GHG Emissions 10.
1954,"Within the framework of the intended nationally determined contributions (iNDCs) proposed by Peru in 2015, six action objectives and targets for reducing vulnerability in agriculture were preliminarily projected ."
1955,"After the ratification of the Paris Agreement, Peru validated these objectives and they have served as the basis for the formulation of NDCs in the Agriculture Thematic Area, whose general objective is to reduce the negative impact of climate change on agricultural activity."
1956,"The implementation of the mitigation measures proposed in the NDCs is expected to reduce a total of 69.4 MtCO2eq, representing 23.3 percent."
1957,"In that sense, although there is a gap of 6.7 percent to reach the national goal of 30 percent, it is planned to define in the short term the necessary measures to cover it."
1958,"On the contribution of mitigation measures to the reduction of GHG emissions in 2030, proposed in both the iNDCs and NDCs, the greatest potential comes from the USCUSS and Energy sectors."
1959,"It is observed that of the total of 69.4 MtCO2eq (23.3 percent), the agriculture sector corresponds to only 6.5 MtCO2eq => (2.2 percent of the total)."
1960,"Greenhouse Gas Mitigation goal to be attained by 2030 is set at 20 percent, as part of a Business as Usual (BaU) scenario, also considering a conditioned scenario with an additional 10 percent reduction in emissions subject to the availability of international external financing and favorable conditions (MINAM 2016a; Peru 2015)."
1961,"The iNDCs proposed to reduce 89.4 MtCO2eq, which represents 30 percent of the projected emissions in 2030 (298.3 MtCO2eq)."
1962,"The Project’s GHG accounting analysis estimates a net mitigation potential of the Project is -5,562 Ton CO2eq per year."
1963,"This adds up to -33,372 Ton CO2eq after 6 years of execution and -111,258 Ton CO2eq over a period of 20 years."
1964,"The gross mitigation potential of the Project is -8,795 Ton CO2eq per year after 20 years of project execution.128 Overall, the contribution of the Project represents 5.2 percent of the estimated and committed potential for 2030, which reflects an effective contribution to the number of systems and surface area intervened by the project."
1965,"Out of the total of 130 sub-project, 51 are vulnerable to precipitation lower than 400mm/year (in Sierra and Costa) and all 95 sub-projects in Sierra are exposed to frost (as shown in tables below)."
1966,Subprojects bridging vulnerability to both low precipitation and frosts stand at 120 (92 percent of the total area).
1967,"Precipitation less than 400 mm/year Geographic Region Number of Sub-Projects Total Area of Vulnerable Sub-Projects (ha) Beneficiaries Costa 25 1,431.17 594 Sierra 26 1,360.95 1,309 Totals 51 2,792.12 1903 Frost Impacts Geographic Region Number of Sub-Projects Total Area of Vulnerable Sub-Projects (ha) Beneficiaries Sierra 95 5,932.95 6,728 Climate Vulnerability - Low Precipitation and/or Frosts Geographic Region number of sub-projects total area beneficiaries Costa 25 1,431.17 594 Sierra 95 5,932.95 6,728 Total 120 7,364.12 7,322.00 127 Fertigation is the practice of applying water-soluble fertilizer with irrigation water (commonly through a micro sprinkler or drip on-farm irrigation systems), thereby combining fertilization and irrigation."
1968,"128 Calculations for GHG reductions were based on a sample of 8 subprojects, while the estimated incremental economic benefits from the reduction of emissions and carbon sequestration were included over a 20-year period."
1969,A constant shadow price of US$7.17/tCO2 was applied.
1970,STRATEGIC CONTEXT A.
1971,Country Context 1.
1972,"Comprehensive reforms since 1986 (known as ‘Ðổi Mới’) have led Viet Nam along a stable economic growth pathway, transforming the country from a low-income to a middle-income economy in one generation."
1973,"Viet Nam has had one of the fastest gross domestic product (GDP) per capita growth rates (averaging 5.5 percent a year) in the world since the early 1990s, yielding a three-and-a-half-fold increase in average income."
1974,"Economic growth has brought dramatic structural transformation, with the agricultural sector’s share of GDP falling from more than 40 percent in the late 1980s to less than 20 percent in recent years."
1975,"Continued growth of the domestic private sector is expected to be a driving force for economic development and job creation, particularly as state-owned enterprise (SOE) reforms progress, and as Viet Nam continues a path toward its longer-term aspirations of being a “modern and industrialized nation moving toward becoming a prosperous, creative, equitable, and demographic society.”1 2."
1976,Viet Nam has performed well in terms of poverty reduction and shared prosperity.
1977,"More than 40 million Vietnamese were lifted out of poverty between 1990 and 2014, extreme poverty (income of less than US$1.90 per person per day) fell from 50 percent in 1993 to less than 3 percent today, and consumption for the bottom 40 percent of the population grew by 6.8 percent annually over the same period."
1978,Access to basic infrastructure has also improved substantially.
1979,"Electricity is now available to almost all households, up from less than half in 1993."
1980,"Access to clean drinking water and improved sanitation in urban areas has risen from less than 20 percent of all households in 1999 to more than 95 percent and 89 percent, respectively, in 2020.2 By the World Bank’s measure of shared prosperity (that is, income growth of the bottom 40 percent of the population), Viet Nam is one of the most noteworthy cases of long-term shared prosperity globally."
1981,"Furthermore, Viet Nam’s economy demonstrated great resilience to the negative effects of the COVID- 19 pandemic, with household income and poverty-related impacts being notable but temporary."
1982,Emerging economic and demographic trends are placing increased demands on service delivery and social protection systems.
1983,Viet Nam’s population is currently around 96 million and growing.
1984,"Urban centers, as important hosts for industry, manufacturing, and services,3 are the main population and economic growth areas providing an increasing contribution to GDP (currently around 50 percent)."
1985,"In addition, an important feature of urbanization is the emergence of the urban middle class,4 which is currently around 10 percent of the population but is expected to reach over 50 percent by 2035 (Systematic Country Diagnostic 2016 – Report 108348)."
1986,"This middle class has rising expectations in terms of their quality of life and living environment, and willingness to pay for improved municipal services, along with expectations of greater voice and choice in decision-making."
1987,"Globally, Viet Nam has been ranked among the top five countries most affected by natural disasters and climate change."
1988,This is due largely to a concentration of population and economic assets in vulnerable coastal lowlands and deltas.
1989,"Specifically, 70 percent of the population is at risk from typhoons, floods, droughts, sea water intrusion, landslides, forest fires, and occasional earthquakes."
1990,"Climate change will increase the impact of weather-related hazards in terms of frequency and intensity of hydro-meteorological events.5 In deltaic regions, drainage and groundwater extraction will 1 Viet Nam 2035: Toward Prosperity, Creativity, Equity, and Democracy."
1991,"2 Progress on Drinking Water, Sanitation and Hygiene."
1992,WHO-UNICEF Joint Monitoring Report.
1993,"3 The annual rural-to-urban migration rate is 1 percent (SCD 2016), and the urban population has grown from 13 million in 1986 to over 30 million today."
1994,"The urban land area also increased by about 50 percent between 2000 and 2010; however, density fell from 19.4 residents per hectare in 2005 to 18.6 residents per hectare in 2010 despite an additional 3.0 million urban residents."
1995,4 Defined to have consumption needs of US$15 per day at 2011 purchasing power parity levels.
1996,5 Official climate change scenarios from the MONRE project show annual mean temperature increases of 0.6°C to 1.2°C by 2040 relative to 1980– 1999.
1997,"Sea level rise of 0.22 m and an increase in rainfall of between 12.4 percent and 33.3 percent is expected by 2030, based on scenario RPC4.5,   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) exacerbate land subsidence6 and increase the threat of coastal flooding."
1998,Coastal cities will be affected by flooding due to the increased intensity of tropical cyclones as well as to sea-level rise induced by climate change.
1999,"Furthermore, sea-level rise can lead to saltwater intrusion into coastal aquifers, affecting groundwater quality and contaminating drinking water sources."
2000,"It is estimated that Viet Nam’s average disaster-related losses stand at approximately US$2.4 billion per year or almost 1.5 percent of GDP.7 As Viet Nam strives to become a modern, industrialized economy by 2035, economic growth will need to adapt to becoming more resource efficient, and therefore less vulnerable to climate shocks on resource availability, as well as to address other consequences of climate change."
2001,Sectoral and Institutional Context 5.
2002,"Viet Nam’s water endowment has helped shape its development gains,8 but action is needed to address emerging risks and ensure sustainable growth."
2003,"Recent analytics9 identified three critical challenges for the water sector, whereby inaction today could reduce GDP growth by nearly 6 percent annually by 2030."
2004,• Boosting efficiency.
2005,"Within 25 years, Viet Nam’s urban population will require twice as much water as current systems supply and two-thirds of the country live in river basins that will be water stressed by 2030."
2006,"Demand management through efficiency gains is needed to meet new challenges associated with rapid urbanization and climate change, particularly from flooding, pollution, and competition for water."
2007,• Reducing threats.
2008,"Pollution constitutes one of the greatest threats to the national economy, with its impact on human health estimated to reduce GDP by 3.5 percent by 2035."
2009,"Only 46 percent of urban households have a connection to drainage, and only 12.5 percent of municipal wastewater is treated."
2010,"Uncollected and untreated wastewater can mix with floodwaters entering natural water bodies during climate change- induced floods, which aggravate water pollution issues and associated public health risks, that is, the spread of waterborne diseases."
2011,• Improving governance.
2012,There is a lack of common data to facilitate coordinated multisector planning.
2013,"Although economic instruments (including tariffs and fees) have been introduced, their implementation and impact have been limited."
2014,"There is a shortfall in the water sector investments, with needs estimated at US$2.7 billion annually to achieve water and sanitation targets alone, against the current financing of roughly US$1.0 billion annually."
2015,"However, the scope for private investment in the water sector is widening, including equitization (privatization) of water supply utilities and public-private partnerships (PPPs)."
2016,"The World Bank’s flagship ‘Water Governance Report’ 10 highlights seven key recommendations to address the challenges facing the water sector: (a) improve water resources management institutions and planning to address the division of tasks, improve regulations and incentives for water efficiency, and ring-fence revenues to reinvest in the water sector; (b) manage Viet Nam’s water at the basin level through inclusive governance arrangements to address intersectoral issues for planning, water allocation, pollution control, and flooding and drought resilience; (c) increase the value and will further increase flood levels."
2017,"6 For example, in the Mekong delta region, land subsidence is 6 mm per year."
2018,7 UNISDR.
2019,Prevention Web: Basic Country Statistics and Indicators.
2020,"8 With nearly 3,500 rivers of more than 10 km in length in 16 major basins and with plentiful rainfall —almost 2,000 mm a year—the country is rich in water resources."
2021,"Water features extensively in the country’s history, art, and traditions."
2022,Rivers have determined the location of settlements and cities and power the country’s industry.
2023,"Their ample waters irrigate more than 4 million ha ( Transforming Cultures eJournal – Vol.5 No 1 June 2010: Waterborne: Vietnamese Australians and river environments in Viet Nam and Sydney - Cadzow, Byrne, and Goodall )."
2024,"A vast network of 7,500 dams store and divert water to thousands of irrigation schemes, making Viet Nam one of the world’s rice baskets."
2025,"Hydropower accounts for about 42 percent of installed generation capacity of about 19.5 GW, with a further 193 projects (5.6 GW) under construction."
2026,9 World Bank.
2027,"Viet Nam: Towards a Safe, Clean and Resilient Water System."
2028,10 World Bank.
2029,"Viet Nam: Towards a Safe, Clean and Resilient Water System."
2030,"  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) produced by water in agriculture; (d) give the highest policy priority to reducing water pollution, with a focus on infrastructure, incentives, and regulation, including making domestic wastewater collection, treatment, and reuse an investment priority and business opportunity and strengthening water quality monitoring and regulatory and enforcement systems; (e) improve risk management and disaster response and strengthen resilience, including an integrated drought and flood monitoring and warning system and locally specific climate risk and vulnerability assessments; (f) develop and scale up market-based financing and incentives; and (g) strengthen water security for settlements, which will require improving resilience to climate-related risks, protection of water sources, and provision of high-quality water supply and sanitation services."
2031,"Government authorities are prioritizing public investment programs that stimulate and promote climate resilience, green growth, and sustainable water management."
2032,"Viet Nam’s National Socio-Economic Development Plan 2021—2025 (NSEDP) emphasized development of human capital, enhancing of scientific and technological capacity, increasing of resilience to climate change impacts and adaptation, improved disaster risk management, and better environmental protection and management of natural resources."
2033,"Several national policies and measures to adapt to climate change and water-related risks have been initiated, along with targeted investment programs to address existing, devastating impacts of water pollution,11 including in Binh Duong Province.12 8."
2034,"Binh Duong Province has fostered strong and rapid development, with high rates of economic growth and urbanization."
2035,"In 2022, the GDP of Binh Duong Province increased by about 8.01 percent in comparison with 2021, with average GDP per capita reaching VND 167.7 million (approximately US$7,100) per person."
2036,It is located close to the economic hub of Ho Chi Minh City (HCMC) and is home to several important industries.
2037,The province’s annual budget revenue in 2022 is the sixth largest in the country.
2038,"As of 2022, Binh Duong Province was home to 2.7 million people, rendering it Viet Nam’s seventh-most populated province and one of the country’s fastest growing populations."
2039,"The province is an employment hub attracting migrant workers, resulting in the highest positive net migration rate within the country (20.04 percent)."
2040,"Roughly, around 80 percent of Binh Duong’s population lives in urban areas, more than double the national average of 31.3 percent."
2041,Urbanization increased by 41 percent in the 2014–2018 period compared to a national urban growth rate of 9.8 percent.
2042,"However, the province faces adverse impacts associated with inadequate wastewater management, placing development gains at risk."
2043,"While wastewater generation has increased substantially in Binh Duong Province, treatment capacity remains inadequate."
2044,"In the urbanized areas of southern Binh Duong Province, the existing treatment capacity is only 40 percent of the current needs."
2045,"Drainage is also inadequate in several areas, with relatively low levels of rainfall causing urban flooding."
2046,"Municipal wastewater pollution, together with frequent urban inundation contribute to the spread of waterborne diseases, which particularly affect women and other vulnerable groups due to their disadvantageous socioeconomic conditions."
2047,"Binh Duong Province needs to address such gaps in wastewater management, not only through infrastructure investments but also by strengthening policies, regulations, and institutions."
2048,"Despite being heavily affected, women are underrepresented in management and decision-making within the sector."
2049,"For example, women comprise only 10.7 percent of representatives on the Provincial Steering Board for Environment Protection and Climate Change (BEPCC), an institution mandated to advise and coordinate on issues related to environmental protection and climate change."
2050,"Such 11 Over the next 15 years, wastewater is expected to account for the largest share of effluents (about 60 percent) and contribute to water-related problems that combined could reduce Viet Nam’s annual GDP by 4.3 percent."
2051,Water pollution affects the health of people and productivity of industries and is projected to lead to US$12.4 to US$18.6 million in costs per day by 2030 if treatment measures are not implemented.
2052,"12 For example, the Ministry of Natural Resources and Environment (MoNRE) announced the National Climate Change Strategy in 2011, the National Green Growth Strategy was adopted in 2012 to attract financing for climate change risks, the Law on Natural Disaster Prevention and Control was enacted in 2013, and Viet Nam ratified the Paris Agreement in 2016."
2053,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) low representation limits alignment with gender equality principles in public policies and reduces the value and importance of equal participation and representation of men and women in decision-making roles.
2054,"Municipal wastewater pollution is a leading cause of water quality deterioration in the Dong Nai and Sai Gon Rivers, presenting a water security risk for downstream communities."
2055,"The project areas are situated immediately upstream of the confluence of the Sai Gon and Dong Nai Rivers, which are the source of drinking water for more than 10 million inhabitants in the Binh Duong and Dong Nai Provinces and HCMC."
2056,"Furthermore, these two rivers provide ecosystem services to Viet Nam’s Southern Key Economic Region (SKER),13 which contributes 60 percent of Government revenues in Viet Nam."
2057,The industrial parks in Binh Duong are already equipped with wastewater collection and treatment facilities to meet the required standards and are closely monitored by the Department of Natural Resources and Environment (DONRE).
2058,"However, municipal wastewater with high nutrient and pollutant loads is discharged into the Dong Nai and Sai Gon Rivers with limited to no treatment."
2059,"It is estimated that about 75 percent of municipal wastewater within the south of Binh Duong Province is being discharged untreated into the Sai Gon and Dong Nai Rivers, with an average biochemical oxygen demand (BOD5) pollution load of about 46 tons of BOD5 per day."
2060,"The province has prioritized the development of municipal wastewater services; however, further investments are required to reduce risks of pollution to the public and environment."
2061,"The World Bank-financed Viet Nam Urban Water Supply and Wastewater Project (P119077) supported Di An, the most densely populated town in Binh Duong, with financing from 2016 to 2018 for the installation of a wastewater treatment plant (WWTP) of 20,000 m per day."
2062,"By end- 2022, with support from various financing institutions, the province has developed four municipal WWTPs with a combined capacity of 87,000 m per day."
2063,"However, this capacity meets only about 40 percent of the wastewater treatment requirements."
2064,"Furthermore, it is estimated that by 2030, a population of around 3.5 million in the urban areas of South Binh Duong will generate 498,000 m3 of wastewater per day."
2065,"Accordingly, despite significant efforts there remains a critical need to expand the current system."
2066,It is within this context that the Binh Duong Province’s Water Environment Improvement Project has been prepared.
2067,"Through investment in climate-resilient infrastructure and institutional support activities, this project will build upon and leverage previous investments to help reduce threats from inadequate wastewater management and contribute to the long-term sustainable development and inclusive growth of Binh Duong Province."
2068,"Moreover, the project responds to key recommendations and policy priorities of sector analytics as highlighted in the Water Governance Report, including the need to prioritize efforts to reduce water pollution, improve efficiency, and create an enabling environment to leverage private-sector participation."
2069,C. Relevance to Higher Level Objectives 13.
2070,"The project is fully aligned with the World Bank Group’s Country Partnership Framework (CPF, Report No."
2071,111771-VN) for Viet Nam 2018–2022.
2072,"It directly contributes to the achievement of Objective 5 of the CPF, to “improve planning, management, and delivery of infrastructure and land in cities,” and the first focus area, to “enable inclusive growth and private sector participation.” Second, the project will support the achievement of Objective 10 of the CPF, to “increase climate resilience and strengthen disaster risk management” under the third focus area (“enhance environmental sustainability and resilience”)."
2073,"13SKER comprising eight provinces and cities: HCMC, Dong Nai, Binh Duong, Ba Ria - Vung Tau, Binh Phuoc, Tay Ninh, Long An, and Tien Giang Provinces."
2074,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) 14.
2075,Project investments directly support the Government’s commitment to Sustainable Development Goal No.
2076,"6: to achieve universal and equitable access to safe and affordable drinking water, sanitation, and hygiene by 2030."
2077,Project areas will secure long-lasting environmental and health benefits through wastewater infrastructure development.
2078,The project is consistent with Viet Nam’s climate and development priorities.
2079,"The project is aligned with Viet Nam’s National Strategy on Climate Change for the period until year 2050 that was approved on July 26, 2022, and builds on findings of the Viet Nam Climate Change and Development Report—Reconciling Economic Success with Climate Change Risks (2022)."
2080,"The project will contribute to building the country’s climate change mitigation and adaptation capacity in line with its commitments under the United Nations Framework Convention on Climate Change, including its updated (2022) Nationally Determined Contribution (NDC)14 for unconditional reduction of 15.8 percent greenhouse gas (GHG) emission and conditional reduction of 43.5 percent by 2030."
2081,"On mitigation, the NDC identifies optimization of treatment conditions of domestic and industrial wastewater, application of biotechnology to remove methane from domestic wastewater treatment processes, and recovery of methane from industrial wastewater treatment as GHG reduction measures from the waste sector."
2082,"On adaptation, the National Adaptation Plan for the Period 2021–2030, with a Vision to 2050, identifies treatment of wastewater up to standards following technical regulations and criteria for reuse, as one of the measures to effectively use and prevent reduction and degradation of water and land resources to improve overall resilience."
2083,"This project supports wastewater pollution reduction through improved wastewater services, which is strongly supported by the NDC and National Action Plan, thus, is consistent with and contributes to the country’s climate commitments."
2084,"Wastewater management services are an integral part of the World Bank’s Green, Resilient and Inclusive Development approach."
2085,"Inadequate wastewater services can have long-term adverse impacts on human capital accumulation, cognition, educational outcomes, and welfare, especially for the poor and marginalized, which can impede development efforts and erase development gains."
2086,Untreated wastewater discharge also poses threats to both natural and human environments.
2087,"This project will help improve wastewater treatment infrastructure systems, including WWTPs and sewers, as well as wastewater management capacity, including both institutions and financial sustainability, for Binh Duong Province to improve its wastewater services to contribute to sustainable and inclusive socioeconomic development."
2088,"Moreover, the project’s contribution to long-term growth is significant, including human, natural, and physical capital development, which will help ensure that the province’s economy will rebound stronger and better after the COVID-19 pandemic."
2089,"For instance, the expansion of improved wastewater services along with health and hygiene promotional activities will help prevent water-borne disease and protect human health during infectious outbreaks, including from viruses such as SARS-CoV-2 (which causes COVID-19) and possible future recurrences, for which handwashing is an important barrier to transmission."
2090,"The project will help build resilience, with interventions to enhance Binh Duong Province’s capacity to cope with and recover from external shocks, including natural disasters and climate change impacts."
2091,PROJECT DESCRIPTION 14https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Viet%20Nam%20First/VIETNAM'S%20INDC.pdf.
2092,"Such activities include, among others, treatment of domestic effluents discharged to receiving waterways, promotion of energy-saving technologies aimed at reducing electricity consumption and GHG emissions, outreach activities to promote environmental sanitation and behavior change, enhancing integrated investment planning and management capacity of local government authorities, creating an enabling environment to attract private-sector participation to enhance investment efficiency and long-term sustainability of wastewater utilities."
2093,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) A.
2094,Project Development Objective PDO Statement 18.
2095,The Project Development Objective (PDO) is to reduce environmental pollution caused by urban wastewater in order to protect water quality and increase people’s access to improved wastewater services in the Project Areas of Binh Duong Province.
2096,PDO Level Indicators 19.
2097,Results toward the achievement of the PDO will be measured using the following indicators: • Number of people who have gained access to improved wastewater services as a result of the project (total number) • Additional pollutants removed by WWTPs (tons per year of BOD5 and Total Nitrogen).
2098,Project Components 20.
2099,"Project investments focus on expanding municipal wastewater collection and treatment capacity in the southern part of Binh Duong Province - Thuan An City, Di An City, and Tan Uyen City."
2100,The current sewage collection and treatment systems only cover a small portion of the urban areas15 and there is a critical need for infrastructure expansion.
2101,"In addition, the project includes targeted activities to strengthen institutional and financial capacity for sustainable wastewater services."
2102,"The project area of Thuan An City, Di An City, and Tan Uyen City cover an area of more than 33,000 ha, with a total population of around 1.4 million."
2103,"The total investment is estimated at US$310.796 million, of which the proposed IBRD loan will finance US$230.763 million."
2104,"The lending instrument is Investment Project Financing (IPF), to be implemented over a five-year period."
2105,"The project is structured into two components, as summarized below."
2106,Further details are provided in annex 2.
2107,Component 1: Wastewater infrastructure development (Total estimated cost: US$246.402 million; from which US$224.002 million in IBRD financing and US$22.4 million in counterpart funding) 22.
2108,Component 1 will enable the scale-up of wastewater treatment facilities and sewerage coverage to increase the overall percentage of municipal wastewater being collected and treated across the south Binh Duong region and will support the development of climate-resilient infrastructure (see paragraph 56) by incorporating climate change scenarios and adaption and mitigation measures into the planning and engineering designs.
2109,"On mitigation, the technical solutions were selected with consideration of potential GHG emissions and energy efficiency."
2110,"On adaption, potential risks of abnormal and extreme climate events including increase of hourly rainfall, increase of water consumption due to higher temperature, as guided by the Government’s climate change scenarios (updated by MONRE in 2020) were considered in designing the invested infrastructure."
2111,This infrastructure will expand coverage and improve the treatment capacity of the municipal wastewater management system in the project areas.
2112,This component will finance goods and works to enable the required municipal wastewater infrastructure investments.
2113,"This will include civil and electrical/mechanical installations for sewerage collection, conveyance (including pumping stations and pressure lines), treatment, energy- efficient installations, and facilities for safe disposal and/or reuse of waste by-products."
2114,"Such investments will expand 15 Coverage rates are currently less than 10 percent in Tan Uyen City, around 19 percent in Thuan An City, and 17 percent in Di An City   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) access to wastewater collection and treatment and help the province adapt to anticipated impacts from climate change, by reducing surface water and groundwater water contamination, as well as reducing public health risk of uncollected and untreated wastewater combining with floodwaters during climate change-induced flooding events."
2115,"Circular economy principles along with energy efficiency measures will be applied in both existing and new WWTPs, including variable speed motors, LED lighting, operational Supervisory Control and Data Acquisition (SCADA) systems, solar panels, and facilities for the reuse of treated sludge and fit-for-purpose re-use of treated wastewater."
2116,"The proposed infrastructure will increase coverage of improved wastewater services from less than 10 percent to 32 percent in Tan Uyen City, 19 to 45 percent in Thuan An City, and 17 to 45 percent in Di An City."
2117,"The priority expansion areas target water quality ‘hot-spots’ identified through surveys, which are predominately high-density urban areas."
2118,"Moreover, the interventions will reduce pollution loads to the Sai Gon and Dong Nai River systems, contributing to broader efforts for environmental protection of surrounding areas and downstream communities."
2119,"Specific investments under Component 1 include the following: Sub-component 1.1 – Tan Uyen City (estimated cost: US$134.213 million; from which US$122.012 million from IBRD financing, US$12.201 million in counterpart funding): this sub-component includes (i) Construction of sewage collection and network, including sewage pumping stations, (ii) Construction of a new WWTP with first stage capacity of 20,000 m per day and (iii) Reconstruction of a drainage canal, around 1.4 km in length, adjacent to the planned WWTP to support the safe evacuation and disposal of treated effluents."
2120,"Sub-component 1.2 – Thuan An City (estimated cost: US$ 43.470 million; from which US$39.518 million from IBRD financing, US$ 3.952 million in counterpart funding): this sub-component includes (i) Expansion of sewage collection and network, including sewage pumping stations, and (ii) Expansion of existing WWTP with additional treatment capacity of 20,000 m per day."
2121,"Sub-component 1.3 – Di An City (estimated cost: US$68.718 million; from which US$62.472 million from IBRD financing, US$6.247 million in counterpart funding): this sub-component includes (i) Expansion of sewage collection and network, including sewage pumping stations, and (ii) Expansion of existing WWTP with additional treatment capacity of 20,000 m per day which will build on the recently completed Viet Nam Urban Water Supply and Wastewater Project (P119077).16."
2122,"Component 2: Institutional strengthening and implementation support (Total estimated cost: US$64.394 million; from which US$6.761 million in IBRD financing, US$57.633 million in counterpart funding) 25."
2123,Component 2 finances goods and services to enhance institutional and implementation capacity of the Binh Duong Provincial Management Board for Wastewater Projects (referred to as the Wastewater Management Board [WWMB])17 for effective project implementation and sustainability of infrastructure investments.
2124,"This component will also help advance public health preventative measures, including increasing awareness of handwashing and hygienic practices."
2125,"Specific activities will be implemented under three subcomponents, as follows: 16 Year 1 targets in household connections in the Results Framework reflect the continuation from the recently completed Viet Nam Urban Water Supply and Wastewater Project (P119077) which supported constructing a WWTP in Di An."
2126,"17 Established in December 2019, the WWMB has the mandate for asset planning, development, and management, while operations and maintenance (O&M) wastewater infrastructure is to be supported through private sector participation."
2127,"Currently the Binh Duong Water Supply, Sewerage, and Environment Joint Stock Company (BIWASE) has been appointed for the operation and management of the drainage and wastewater assets."
2128,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Subcomponent 2A: Preparation of an integrated wastewater management orientation in Binh Duong Province (US$0.823 million in counterpart funding) 26.
2129,"This subcomponent includes technical assistance (TA) underlying the preparation of an integrated wastewater management orientation for Binh Duong Province by supporting the development of a strategic document that will include a comprehensive review of the existing wastewater situation (in both urban and rural areas), planning and growth scenarios, and wastewater management alternatives throughout the entire province, including infrastructure, financing, and institutional elements."
2130,"It will involve an options analysis, consultations and prioritization processes, preparation of a plan for cost-effective medium- and long-term investments, and a road map for wastewater tariff adjustments, along with operational procedures and guidelines for wastewater asset management and an institutional capacity improvement plan."
2131,The orientation will also include considerations of lower-carbon alternatives (mitigation) and measures to reduce risks from climate hazards to build resilience (adaptation) in the infrastructure planning/construction master plans.
2132,"The strategic intention is to provide clear guidance on how to effectively achieve policy objectives of universal coverage under a holistic, cost-effective, and sustainable approach."
2133,"The wastewater management orientation will be prepared with consideration of the construction master plans, with a view to reduce environmental impacts associated with rapid urbanization and build resilience to increased exposure and vulnerability to climate change."
2134,"The orientation will integrate relevant sector innovations, including newer concepts of nature-based solutions along with the principles of a circular economy."
2135,Recommendations will include measures with gender-targeted community and citizen engagement.
2136,"Subcomponent 2B: Project implementation support (estimated cost: US$38.741 million; from which US$6.761 million in IBRD financing, US$31.980 million in counterpart funding) 28."
2137,"Subcomponent 2B includes financing for project management and implementation support activities, including Project Management Unit (PMU) operating costs for technical, safeguards and fiduciary management, including for grievance redress, gender and citizen engagement, monitoring and evaluation (M&E), including beneficiary satisfaction surveys and stakeholder consultations, financial audits, independent monitoring for E&S safeguards, and other day-to-day management and implementation costs."
2138,"It also includes consultancy activities to support infrastructure developments, including surveys, detailed designs, bidding documents, construction supervision, and contract management."
2139,"In addition, this subcomponent will support information, education, and communication (IEC) activities focused on (a) handwashing and hygienic practices, (b) promoting of household connections to the municipal sewerage system, and (c) increasing of willingness to pay for wastewater services."
2140,Some of these activities will be conducted in collaboration with municipal women’s unions.
2141,The subcomponent will also provide trainings on gender and wastewater management for provincial male and female leaders.
2142,Some of the trained women will be nominated for membership in Binh Duong Provincial BEPCC.
2143,"The Binh Duong WWMB will also be supported through TA to develop its capacity for asset management and complex procurement, including tendering processes for private sector participation, specifically developing bidding documents, including a draft contract template, to facilitate the selection of the most cost-effective and qualified service provider."
2144,Subcomponent 2C: Compensation and site clearance (US$24.830 million in counterpart funding) 31.
2145,"This subcomponent supports, through counterpart funding, all costs associated with resettlement, compensation, land acquisition (see paragraph 80), and site clearance required for project implementation."
2146,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) C. Project Beneficiaries 32.
2147,"The project is designed to reach and benefit roughly 550,000 residents of Thuan An, Di An, and Tan Uyen in Binh Duong Province by 2032.18 In addition, the Provincial and City/District People’s Committees will benefit through TA and capacity development activities."
2148,"Moreover, project activities will contribute to broader programs to reduce pollution in the Dong Nai and Sai Gon River system which will provide multiple benefits to residents, the environment, and economy of this important sub-region, including settlements directly dependent on water from the rivers."
2149,"For example, the drinking water for more than 10 million people in Dong Nai, Binh Duong, and HCMC comes from the Dong Nai River."
2150,D. Results Chain Figure 1.
2151,"Project Theory of Change Challenges Activities Outputs Outcomes Long-term Impacts • Construct separated • Low coverage of • Climate-resilient sewerage Infrastructure sewerage collection & municipal sewerage facilities infrastructure installed & transmission system operational • Inadequate wastewater • Expand existing WWTPs & treatment capacity • Climate-resilient WWTPs construct new WWTP constructed & operational • Environment & public • Energy efficiency installations health risks, including • Waste bi-product reuse & & waste product resource downstream settlements energy efficiency gains utilization • Improved living conditions within project areas • Improved wastewater • Limited household • TA activities to promote • New house connections services Information • Improved water quality of sewerage connection rates household connections Dong Nai & Saigon Rivers • Increased awareness & & • Limited awareness of • IEC activities to improve improved practices for hygiene & • Increased water security for hygiene & handwashing hygiene & handwashing handwashing • Reduced municipal downstream communities • Limited willingness to pay • Surveys & TA to support • Increased revenues from wastewater pollution in • Improved public health, for wastewater services willingness to pay wastewater tariff project areas environment, & socio- economic opportunities for Southern • Lack of inter- Economic Region of Vietnam • Comprehensive provincial departmental coordination wastewater management strategy • Institutional capacity support • Gender inequalities in to the WWMB & BEPCC with roadmap for reforms management & decision making • TA to prepare a provincial • O&M contract with private Key assumptions: Institution sector • Sub-optimal wastewater management • PPC’s commitment is maintained, including arrangements for private strategy, including tariff • Increased revenues from financial sustainability, counterpart funding, sector participation adjustment & reform roadmap wastewater tariffs & reduced leveraging private sector, institutional development subsidies & coordination • Heavily subsidized • TA to support bidding & • Activities to support household connections & municipal wastewater contract templates for private • Increased female participation improved health / hygiene knowledge attitude & services sector O&M within the WWMB & BEPCC practices are effective • Sub-optimal O&M • Efficient O&M • Wastewater tariffs remain affordable, & • Training for officials residents are willing to pay for the wastewater • Lack of asset management system • Proactive asset management services E. Rationale for Bank Involvement and Role of Partners 33."
2152,"Through this project, the World Bank intends to support a comprehensive approach to help the province achieve its long-term vision for sustainable economic growth and development."
2153,"The World Bank has been closely engaged in Viet Nam’s water sector through a series of projects for over 20 years, working closely with both central ministries and provincial authorities."
2154,"The World Bank brings extensive experience to this project, drawing upon global and Vietnamese best practices to support efficient and sustainable investments."
2155,"The project builds upon the successfully closed Urban Water Supply and Wastewater Project (P119077) and is designed to deepen and expand development impacts through 18The project-end beneficiary target, however, is set at 374,900, which will be the number of additional beneficiaries provided with wastewater services by the end of project implementation (2028)."
2156,"The full capacity of the new plants is expected to be reached by 2032, serving an estimated 550,000 people."
2157,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) infrastructure and institutional strengthening.
2158,"With the establishment of the WWMB, Binh Duong has the potential to become a center for sectoral knowledge and experience which could be replicated and shared with other provinces of Viet Nam."
2159,The World Bank is thus well positioned to continue providing TA and financing.
2160,"Specific aspects of the World Bank’s value added demonstrated through this engagement include (a) support for integrated planning, management, and coordination; (b) promotion of new technologies and concepts, including the circular economy and energy efficiency; (c) support for improved institutional and PPP arrangements for sustainable services, including an integrated wastewater management strategy, financing and affordability mechanisms, along with asset management models for sustainable O&M; (d) increased attention to climate change adaptation and mitigation; and (e) support to improve gender equality and social inclusion in project areas."
2161,"Project preparation benefited from World Bank-led studies, TA, and expert opinion across these areas, which will continue during project implementation, supported by the Global Water Security and Sanitation Partnership."
2162,F. Lessons Learned and Reflected in the Project Design 35.
2163,"To maximize development impacts, including investment efficiency and financial sustainability, it is important to prioritize and support the uptake of new household connections."
2164,"Wastewater investment projects often face challenges in meeting planned connection targets, which can result in idle capacity of WWTPs and a continuation of untreated wastewater discharging into river systems."
2165,"A better alignment of demand- and supply-side activities, along with strong support for creating an enabling environment, can help ensure barriers to connection are overcome and the full benefits of investments are realized."
2166,Careful consideration regarding the financial sustainability of investments will enhance project benefits in the long run.
2167,"Investments in the wastewater sector are largely dependent on public financing; however, the public sector rarely allocates the required budget for O&M."
2168,Inadequate capacity of wastewater management departments regarding O&M is also an issue that can lead to rapid deterioration of assets.
2169,"Through the provincial wastewater management strategy, the project will support the development of a new tariff road map19 to enhance sustainability of infrastructure investments and improved O&M arrangements."
2170,A robust M&E system supports effective planning and implementation.
2171,A robust sector M&E system and regular reporting is a fundamental requirement to assess project outcomes and service delivery.
2172,"The project proposes a comprehensive M&E system that includes regular customer surveys, with the aim of engaging beneficiaries in actions necessary for improving services."
2173,Customer surveys will also be conducted to evaluate the effectiveness of IEC activities in terms of encouraging people to pay for wastewater services and improving handwashing and hygiene awareness and behaviors.
2174,Private sector participation can drive improvements in the quality and efficiency of wastewater services.
2175,Private sector participation can offer important opportunities to improve service performance in terms of efficiency and sustainability.
2176,"The project will provide TA to support the selection and contracting process for PPP O&M arrangements, with a focus on transparent and competitive processes."
2177,"This is expected to lead to improvements in the cost-effectiveness of service provision, together with better financial, commercial, and technical sustainability."
2178,Institutional strengthening is a necessary part of project design to ensure achievement of results and sustainability of interventions.
2179,"Several supporting activities for building institutional capacity for project implementation, asset management, and service delivery are included under Component 2, including the development of a provincial 19Approval of the wastewater management orientation, which includes a tariff adjustment road map, is an intermediary indicator in the project Results Framework."
2180,"  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) wastewater management orientation, which will help enhance internal coordination and define the roles and responsibilities of the key agencies to enhance development of the sector across urban, peri-urban, and rural areas."
2181,IMPLEMENTATION ARRANGEMENTS A.
2182,Institutional and Implementation Arrangements 40.
2183,The project implementation arrangements are informed by experience and well-defined institutional mandates within the province.
2184,The Binh Duong Provincial People’s Committee (PPC) is the decision-maker regarding the investment and is responsible to the Central Government for project preparation and implementation.
2185,The PPC has approved the Project Feasibility Study and other relevant project documents.
2186,"As per the PPC’s decision, the WWMB has been appointed as the project owner and will serve as the PMU."
2187,"The PMU will be responsible for day-to-day activities, including procurement, financial management (FM), disbursement, M&E, safeguards management, audits, quality oversight, and progress reporting."
2188,"It will also coordinate and report on project activities, including communications with the World Bank and government agencies."
2189,The PMU’s organizational structure and terms of references (TORs) for key positions have been agreed to and are outlined in the Project Implementation Plan.
2190,The PMU structure includes three city/district-level units to support implementation and coordinate with district authorities.
2191,Land acquisition and resettlement are the responsibility of district-level units.
2192,"The PMU will be supported by engineering consultants for detailed design and construction supervision, who will provide quality assurance and quality control systems, along with support for environmental and social (E&S) safeguards management, M&E, and other critical areas for project implementation."
2193,"During implementation, the PMU will be responsible for and work closely with the district-level units on IEC activities, including the household connection campaigns and handwashing and hygiene behaviors change programs."
2194,"Project implementation will require technical inputs, clearance, and/or facilitating support from various provincial line departments: the Department of Planning and Investment (DPI), Department of Finance (DoF), Department of Construction (DOC), Department of Agriculture and Rural Development (DARD), and DONRE."
2195,Such departments have specific roles and responsibilities during the review and appraisal processes before submission to the PPC for approval.
2196,"The coordination of inputs from each line department will be part of the role of the PMU, with support from the PPC."
2197,A Project Steering Committee (PSC) has been established during preparation and will be maintained to ensure strong engagement and close collaboration among relevant provincial departments and agencies during implementation.
2198,The O&M of infrastructure investments will be carried out by an eligible private service provider selected through a public tendering process as required by the current Government’s regulations (Decree 32/2019-ND-CP).
2199,"Under Component 2, the project will provide TA to Binh Duong Province to support the development of bidding documents, including a draft contract template, to facilitate the selection of the most cost-effective and qualified service provider."
2200,Overall project institutional arrangements are illustrated in figure 2.
2201,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Figure 2.
2202,Project Institutional Arrangement B.
2203,Results Monitoring and Evaluation Arrangements 45.
2204,Project performance will be monitored based on the indicators and methodologies detailed in the Results Framework (Section VII).
2205,The PMU will be responsible for the project results M&E.
2206,"Specifically, they will (a) ensure timely identification of bottlenecks during implementation, (b) monitor the performance of the project toward achievement of its objectives, and (c) provide regular monitoring reports on the progress of activities under Components 1 and 2."
2207,"The PMU includes a full-time M&E specialist, who will help integrate results and coordinate data collection and analysis and who will oversee the work of the M&E consultant described below."
2208,"The project monitoring indicators were developed recognizing the capacity, availability of data, and costs of M&E."
2209,An experienced and independent entity (firm or institute) will be selected by the PMU to design and manage the project’s M&E system.
2210,"Specifically, this entity will (a) prepare the design of an M&E system (including data collection sites and M&E institutional arrangements at the district level), (b) carry out a baseline survey for the key performance indicators, and (c) prepare an M&E baseline survey report."
2211,"The M&E entity will also carry out the following M&E activities during implementation: (a) collect data, (b) analyze and evaluate project performance based on the data collected, (c) prepare semiannual M&E reports, and (d) prepare a final impact/outcome assessment report."
2212,"The project will establish a baseline by conducting a beneficiary survey to measure who benefits, and to what extent, from the infrastructure and services and how it affects people’s lives in both social and economic terms."
2213,"The PMU, with support from the consultant, will also collect and compile data to provide the basis for a comprehensive midterm   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) review."
2214,The PMU will also undertake an end-project review and prepare a final Implementation Completion and Results Report.
2215,"In addition, data and information on project activities will be collected and collated quarterly."
2216,"The PMU will be required to submit quarterly progress reports on implementation aspects that will include reporting on procurement, FM, physical implementation, and E&S aspects."
2217,Project financing includes an allocation for technical support to the PMU as needed to carry out their M&E duties and responsibilities.
2218,C. Sustainability 48.
2219,"Sustainability is a core project principle integrated at various levels of design, implementation, and operations, as described below."
2220,Technical sustainability.
2221,The project will apply technical design standards and methods to support operational sustainability.
2222,"This will include careful consideration of the quality and quantity of wastewater generated, climate resilience in terms of both mitigation and adaptation, life cycle costs, and operational capacity constraints."
2223,"Modernization of technical standards and designs will provide systems that can be managed efficiently and operated reliably, while meeting customer demands for service and affordability."
2224,Environmental sustainability.
2225,"Principles of environmental sustainability are central to project design: (a) reduced wastewater pollution discharged resulting from the project will have positive environmental impacts, extending beyond the well-quantified socioeconomic benefits, including improvements to the ecosystems and biodiversity, amenity, and waterway recreation for downstream communities; (b) energy-efficient improvement measures will be undertaken to reduce the WWTP’s operational energy consumption and associated GHG emissions; (c) circular economy principles are applied in project design to reduce resource consumption, including facilities for the reuse of treated sludge and of treated wastewater for limited internal purposes (for example, for cleaning of facilities and garden watering); and (d) the pollutant absorption capacity of receiving waterways has been assessed and results demonstrate the need for the project investments supporting the province’s transitional plans toward a green and clean development pathway."
2226,Financial sustainability.
2227,"In addition to efforts to improve efficiency and reduce the operating costs of wastewater treatment, the project will support the development of an integrated wastewater management orientation, which will include a tariff road map to increase tariff revenues such that they cover all O&M expenses in the near to medium term, as well as full operational and investment costs in the longer term and mechanism for subsidizing the O&M costs of the service, should revenues from associated tariffs be inadequate for this purpose."
2228,"Furthermore, the project will support the development of O&M arrangements with the private sector, with an emphasis on improving service coverage and efficiency to enhance long-term financial sustainability."
2229,Institutional sustainability.
2230,"The project will provide TA to strengthen the WWMB’s asset planning, development, and management capacities."
2231,"The WWMB will be supported to prepare the integrated wastewater management orientation, which will identify key areas for policy, regulatory, and institutional reform and outline a road map for development."
2232,The WWMB will also be supported to enhance its capacity in processing bidding for selecting qualified O&M operators and then effectively managing the signed contracts with those operators.
2233,Social sustainability.
2234,"Involvement of the community, district governments, and other key stakeholders in project preparation and during implementation will help arrive at locally supported outcomes."
2235,Critical to social sustainability will be the expansion of services and a demonstration that they meet public expectations and priorities through a transparent and efficient process.
2236,The project will support community consultation and participation to promote a sense of ownership of the activities and investments.
2237,Communications and public awareness programs will be implemented to support knowledge and behavioral changes targeted toward increasing household connections and willingness to pay for wastewater services.
2238,Citizen engagement mechanisms will be introduced to enhance accountability and recourse.
2239,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) IV.
2240,PROJECT APPRAISAL SUMMARY A.
2241,"Technical, Economic and Financial Analysis Technical 54."
2242,"The project supports the improvement of wastewater services in rapidly growing urban centers of Binh Duong Province and responds to key recommendations and policy priorities from sector analytics as highlighted in the ‘Water Governance Report’, including the need to focus efforts on reducing water pollution, improving resource efficiency , and creating an enabling environment to leverage private-sector participation."
2243,"Infrastructure development will substantially increase coverage in unserved, high-density, urban areas, reducing threats to public health and the environment and improving water quality in the Dong Nai and Sai Gon Rivers."
2244,"The investments are aligned with the Binh Duong Wastewater Master Plan (approved in 2003), while a new, forward-facing provincial wastewater strategy will be developed under the project."
2245,"The World Bank has reviewed and confirmed that the proposed infrastructure solutions are based on technically sound feasibility studies and concept designs, supported by engineering investigations and analysis."
2246,"The planning process considered various technical and institutional alternatives, operational capacity constraints, and life cycle costs to promote project sustainability."
2247,"The pipeline design (sizing and locations) considers potential future development of the rapidly expanding urban centers to avoid unnecessary phasing, while the treatment capacity will be implemented under a modular approach to maximize investment efficiency."
2248,"The design capacity calculations follow Government design standards, which are consistent with international practice."
2249,Priority is given to using local construction materials and equipment where feasible.
2250,"Potential impacts of climatic change, including sea level rise, and consideration of mitigation and adaption needs, have been applied during the process to optimize designs and reduce costs over the long term, thereby enhancing the climate resilience of the infrastructure constructed under the project."
2251,"For example, climatic scenarios have influenced the locations, sizing, elevation, and some O&M requirements for the WWTPs and treated-effluent discharge points."
2252,"The selected wastewater treatment technology (Advanced Sequencing Batch Reactor [ASBR]) is well known in Viet Nam, and in Binh Duong in particular, since the WWTPs in Thu Dau Mot City, Thuan An City, and Di An City use the same technology."
2253,"The technology meets the required treatment standards, which includes nutrient removal, requires less land, and can be optimized through automation processes to reduce operational risks and costs."
2254,"Circular economy and energy- efficiency principles have been applied to the design to reduce costs and maximize the effective use of resources, including waste byproducts."
2255,"Specifically, this includes the installation of variable-speed motors, LED lighting, operational SCADA systems, solar panels, and facilities for the reuse of treated sludge and treated wastewater for limited internal purposes (for example, for cleaning of facilities and garden watering)."
2256,Cost estimates prepared by the PMU and its consultant have been reviewed by the World Bank.
2257,The estimates are based on a comparison of market rates and include necessary provisions for contingencies.
2258,"The proposed contract packaging considers potential technical and procurement risks and geographical constraints, and where possible, seeks to increase efficiency through economies of scale (by grouping similar investments into larger packages)."
2259,"Moreover, the procurement packaging and implementation time frames were reviewed from a technical perspective, and it was confirmed that the approach incorporates lessons learned though the experience of the previous projects and is considered achievable within the project duration."
2260,"Detailed engineering designs and bidding documents have been prepared for three large civil contracts, with a total value of around US$50 million (around 20 percent of the total project costs)."
2261,Advance procurement activities are expected to start before project effectiveness to ensure readiness for implementation.
2262,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) 59.
2263,"The provincial integrated wastewater management orientation to be developed under the project will provide the necessary framework for Binh Duong’s new master plan, as required by applicable laws and regulations."
2264,The master plan will guide further development of wastewater infrastructure in the province in the context of rapid urbanization and industrialization as well as build resilience to potential impacts of climate change.
2265,"The full operational efficiency and sustainability of the services and project infrastructure are expected to be achieved through selection of appropriately qualified operator(s), with effective support from the Binh Duong WWMB in asset management."
2266,TA activities under Component 2 will help achieve that goal.
2267,The project is aligned with the goals of the Paris Agreement on both adaptation and mitigation.
2268,Assessment and reduction of adaptation risks.
2269,"The main climate and disaster risks affecting the Binh Duong Province are extreme rainfall events and floods, increase of temperature, sea level rise, and cyclonic winds."
2270,"A climate change risk screening was conducted, indicating an overall risk of moderate."
2271,"To address these risks, the task team reviewed the recommendations provided in the Resilient Water Infrastructure Design Brief and adopted pertinent recommended measures into the project design to ensure new and expanded infrastructure are resilient to climate change."
2272,"Such measures will increase the reliability of sanitation services, as service disruptions resulting from infrastructure damaged by extreme weather events will be less likely to happen."
2273,"In addition, climate scenarios were applied in the project design, such as in the selection of the siting, sizing, elevation, and some of the WWTPs’ O&M requirements and treated-effluent discharge points."
2274,"Lastly, TA to improve utilities’ operational, commercial, and financial performance will be provided, supporting utilities to continue investing in climate-resilient, reliable, and sustainable service delivery."
2275,"Combined, these measures reduce material risks from climate hazards to an acceptable level, ensuring these risks will not have a material impact on the operation and its development objectives."
2276,Assessment and reduction of mitigation risks.
2277,Project activities financed under this operation are universally aligned.
2278,All WWTPs and pumping stations supported under the project will rely on energy from the grid and the project will not involve any large-scale anaerobic treatment with significant methane emissions lacking biogas capture.
2279,"Project design also applies circular economy principles to reduce resource consumption and raise environmental sustainability— among others, by building facilities for the reuse of treated sludge and of fit-for-purpose wastewater."
2280,This circular economy approach contributes to both mitigation (lower energy demand and fertilizer displaced by biosolids) and adaptation (reduced water pollution).
2281,"The investment in wastewater collection and treatment plants will positively contribute to improving the local environment by reducing pollution in urban areas during flood events, through separation of wastewater from stormwater, and by reducing pollution in water bodies."
2282,"In addition, TA will be provided to improve energy efficiency in wastewater service providers, which would further contribute to GHG emissions reduction efforts."
2283,"Thus, the operation is not at a material risk of having a negative impact on the country’s low -GHG emissions development pathways."
2284,The operation is fully aligned with the goals of the Paris Agreement on both mitigation and adaptation.
2285,It will strengthen the country’s capacity for climate change mitigation and adaptation supporting its NDC.
2286,Economic and Financial Analysis 63.
2287,Economic analysis.
2288,"A cost-benefit analysis was carried out for investments proposed in this project, which yielded satisfactory overall results."
2289,The principal drivers of value for the treatment plant and sewerage system investments under Component 1 are the estimated number of persons and institutions served by new connections to the system.
2290,The analysis finds that the combined project investments are economically worthwhile since they yield an economic rate of return (ERR) of 11.68 percent before accounting for GHG reduction benefits.
2291,"The expansion of the existing systems in Di An and Thuan An generates higher ERRs than the new system designed for Tan Uyen, in part because of Tan Uyen’s higher initial capital costs."
2292,The project investments in Tan Uyen can eventually support the future system expansions that are currently   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) possible in Di An and Thuan An.
2293,"In addition to monetizable benefits, the project would generate other benefits that cannot be adequately measured, such as improved water environment and aquatic biodiversity and enhanced community amenity, recreation, and tourism opportunities."
2294,"Thus, the ERRs are conservative estimates of project value."
2295,Benefits are measured relative to the number of connections and average volumes of wastewater produced per connection.
2296,The value per connection is based on the difference in net benefits between with- and without-project scenarios.
2297,"It is assumed that without the project, existing septic systems would continue to be used."
2298,"The net benefits of participating in the project combine the benefits of (a) community-wide improvements in health, mortality, and productivity attributable to improved sanitation; (b) household-level savings in annualized costs of septic system maintenance; and (c) net out-of-pocket household-level costs20 for a new connection."
2299,"In addition, part of the initial capital costs of the projects are likely to generate long-term benefits for continued expansion of wastewater treatment beyond the project implementation period, as discussed further in annex 3."
2300,GHG accounting.
2301,A World Bank standard technical assessment tool was used to analyze the impact of project investments and operations on GHG emissions.
2302,"The wastewater collection and treatment activities under Component 1 have estimated net emissions reductions of 1,089,066 tCO2eq over the economic lifetime of the project or an annual average reduction of 43,562 tCO2eq, compared to the status quo."
2303,"A sensitivity analysis is conducted to value CO2eq emissions reductions using high and low shadow prices.21 At a high shadow price, the project achieves an ERR of 11.70 percent, an increase over the 11.68 percent ERR based only on wastewater treatment benefits."
2304,"Applying a low shadow price on CO2eq results in a smaller increase in the project-level ERR, at 11.69 percent."
2305,Financial analysis.
2306,"Financial projections of the three Binh Duong wastewater operational units, incorporating the project-funded additional treatment capacity per unit, have been undertaken to estimate (a) likely revenues to be provided by customer tariffs and (b) the level of provincial subsidies likely to be needed in the near term."
2307,"Binh Duong’s wastewater tariff policy is to gradually increase current tariffs (which have been initially set at 15 percent of O&M costs, the remaining 85 percent of costs being covered by the provincial budget) to levels that would cover 100 percent of O&M costs by 2030 and to transition toward full cost recovery, including 100 percent of O&M costs plus full annual depreciation costs, incrementally thereafter with consideration to affordability constraints."
2308,A draft tariff road map to support Binh Duong Province in meeting its policy objectives up to 2030 has been prepared and appraised.
2309,Additional information is provided in annex 3.
2310,"The investment feasibility studies estimate that O&M costs are VND 6,207 per m3 at full utilization of treatment capacity, while the full cost-recovery tariff, defined as all direct operating, maintenance, and administrative costs plus depreciation costs, (for all three systems) is VND 20,642 (US$0.89) per m3."
2311,"The following summarizes the projected financial gaps in covering operating costs for each system for the years 2024 through 2030, that is, the period during which tariffs do not yet cover O&M expenses, as well as the projected amount of necessary Government subsidy to the systems."
2312,Table 1.
2313,"Net Revenue Gap/Government Subsidy Estimates 2024–2030, VND, millions 2024 2025 2026 2027 2028 2029 2030 Di An 19,851 37,214 29,237 20,388 19,132 13,685 5,487 Thuan An 20,457 35,985 37,121 25,155 17,430 12,474 5,038 Tan Uyen 4,641 12,444 13,075 11,558 8,346 0 20 Currently, households pay an environmental service fee based on their water consumption."
2314,This fee aims to account for the human and environmental impacts of untreated wastewater discharge.
2315,This fee would be eliminated for those who connect to the project.
2316,"21 In 2020 the high shadow price of carbon is US$80/tCO2e, the low prices is US$40/tCO2e."
2317,and the annual growth rate of the shadow prices is assumed to be 2.26 percent.
2318,"  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Combined Government subsidy 40,308 77,839 78,803 58,618 48,120 34,505 10,525 required (Approximate US$, millions) 1.74 3.36 3.40 2.53 2.08 1.49 0.45 Note: a."
2319,"According to Decree 80 and state budget law, wastewater service is a public service and PPC is responsible for providing such service to its citizens."
2320,The required subsidy is to be incorporated into the annual provincial public expenditures.
2321,"Exchange rate effective as on January 13, 2021."
2322,Fiscal analysis.
2323,"A fiscal analysis has been conducted to analyze Binh Duong Province’s capacity to take on the proposed loan from the World Bank within the debt limit under the law, including the province’s capacity to provide counterpart funding to repay the loan and provide necessary operating subsidies."
2324,"According to the 2015 Budget Law,22 Binh Duong Province is responsible for repayment of 70 percent of any official development assistance (ODA) borrowing."
2325,Its debt ceiling is 30 percent of its revenues (after required transfers to the Central Government).
2326,"The proposed project is expected to be financed with an IBRD loan of US$230.763 million, of which Binh Duong will have to repay around US$161.53 million (principal) as well as the interest costs and loan financing charges."
2327,"A without-project fiscal assessment based on revenue and debt projections through 2028 shows its highest debt-to-revenue ratio to be 10 percent, in 2025, or 34 percent of its debt ceiling."
2328,"With the debt expected to be taken on by the province because of the project, its debt- to-revenue ratio rises to its highest point in 2026 to 10.7 percent or 36 percent of its debt ceiling."
2329,"While the project therefore contributes significantly to the province’s overall debt burden, the analysis indicates enough fiscal capacity to (a) cover debt service for the proposed sub-loans under the project, (b) manage overall debt within the allowed limits, (c) provide the required counterpart fund contributions, and (d) provide the O&M subsidies needed."
2330,"At the O&M cost coverage rate of VND 6,207 per m3, monthly charges related to wastewater would be about VND 62,100 (US$2.66) or 0.3 percent of average household income."
2331,"At the lowest household income quintile, wastewater services at expected O&M cost coverage levels are estimated to be approximately 0.7 percent of household income, while the next three income quintiles would likely pay between 0.3 and 0.4 percent of household income."
2332,The projected O&M cost-recovery tariff would therefore remain highly affordable for the average household.
2333,"The full cost- recovery tariff (VND 20,642 per m3 or US$ 0.89 per m3) is estimated to cost approximately 2.5 percent of monthly income of the lowest quintile and between 1.0 percent and 1.4 percent for the next three income quintiles."
2334,"Since households of all income quintiles pay between 0.3 and 0.4 percent of their income for water services, both the O&M tariff and the full cost-recovery tariff fall within benchmarks for water and wastewater service affordability for households of all income quintiles (that is, 5 percent of household income), the project will support IEC activities to increase the willingness to pay for wastewater tariffs."
2335,Maximizing Finance for Development.
2336,The project is designed to be ‘non-monetary private capital enabling’.
2337,"That is, while the project does not currently mobilize private capital, in the medium and long term, it aims to provide a foundation for private sector investment through (a) strategy, policy, and regulatory development; (b) strengthened institutional and regulatory capacity; (c) an increasing cost-recovery strategy through tariff adjustments; and (d) the introduction of private operators in the O&M of assets."
2338,"With the appropriate institutional arrangements in place and enhanced private sector involvement in operations, Binh Duong Province could attract private sector investment in the sector in the future, which in turn could improve operational efficiency, long-term financial sustainability, and the quality of services."
2339,Private capital-enabling result will be monitored by number of O&M contracts awarded to qualified operators.
2340,Fiduciary 22 Decree 97/2018 / ND-CP and decision 1107/QD-BTC.
2341,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Financial Management 71.
2342,FM implementation arrangement.
2343,"The PMU will be responsible for (a) project financial statements, (b) management of Designated Account (DA) for project activities, (c) contract management and payments, and (d) maintenance of accounting records."
2344,The annual external audits are performed independently by the State Audit Office of Viet Nam (SAV).
2345,The proposed arrangements meet the World Bank’s minimum FM requirements.
2346,"An FM action plan with time-bound actions and an Implementation Support Plan (ISP) have been prepared to ensure sufficient FM capacities, as well as to address FM risks that have been identified as part of the FM assessment."
2347,FM capacity assessment.
2348,The project FM assessment noted satisfactory FM arrangements of the provincial PMU of Binh Duong.
2349,"The assessment has concluded that the proposed project FM arrangements meet the World Bank’s FM requirements, as stipulated in the Bank Policy/Bank Directive for Investment Project Financing."
2350,"The main risk identified at appraisal includes potential delay/inadequacy of the country’s Medium-Term Public Investment Plan (MTIP) 2021–2025 and the insufficient budget allocation for both ODA and counterpart funds to the province/project, which, if materialized, will cause delays in project implementation."
2351,Procurement 73.
2352,World Bank-financed procurement activities under the project shall be carried out in accordance with the World Bank’s ‘Procurement Regulations for IPF Borrowers dated November 2020 (the ‘Procurement Regulations’).
2353,"During project preparation, the PMU has prepared a Project Procurement Strategy for Development (PPSD)."
2354,"The PPSD recommends the following risk-based procurement approaches to be followed to support the achievement of the PDO and deliver the best value for money: (a) the civil works contract for the WWTP in Tan Uyen, which has a large value (US$30 million) and higher technical complexity, should be procured through the request for bids (RFB) method targeting the international market; (b) the large-value consulting service contract for construction supervision and contract management should be procured using the Quality- and Cost-Based Selection (QCBS) method, which would be open for international bidding; (c) other civil works contracts, which are of a simple technical nature, smaller value, and lower risk, should be procured through the RFB method with the national market approach, using the e-bidding process in the Viet Nam National Electronic Procurement System (VNEPS)."
2355,The World Bank team has conducted a project procurement risk assessment for the project.
2356,The key risks identified at appraisal and proposed risk mitigation measures are presented in annex 1.
2357,C. Legal Operational Policies @#&OPS~Doctype~OPS^dynamics@padlegalpolicy#doctemplate Legal Operational Policies Triggered?
2358,Projects on International Waterways OP 7.50 Yes Projects in Disputed Area OP 7.60 No Projects on International Waterways (OP/BP 7.50) 74.
2359,"The policy is applicable to this project because some of the proposed activities involve discharging treated wastewater to tributaries of the Sai Gon River, which is shared between Viet Nam and Cambodia."
2360,"Project activities involving the use of or risk of pollution of the parts of the Sai Gon River system, parts of which flow from Cambodia to Viet Nam, namely activities related to the upgrading of Thuan An WWTP, are limited to additions and alterations that   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) do not exceed or change the nature of the original scheme."
2361,"Other investments related to the use of or risk of pollution of the river system, the new Tan Uyen WWTP and upgraded Di An WWTP, are located on canals or rivers which are tributaries of the Dong Nai River."
2362,"The Dong Nai River, before it meets the Sai Gon River, is a tributary that runs exclusively within Viet Nam, which is the lowest downstream riparian country."
2363,The WWTP investments will reduce the flow of untreated wastewater into the river system.
2364,"They are not expected to have adverse impacts on the quality or quantity of the Sai Gon River systems and will not be adversely affected by the other riparian’s possible water use, and therefore meet the criteria for the exception to the notification requirement according to paragraphs 7 (a) and (c) of the policy, respectively."
2365,"The exception to the notification requirement was approved by the Regional Vice President for East Asia and Pacific on December 16, 2020."
2366,D. Environmental and Social 75.
2367,"The project is expected to have direct positive benefits from improved wastewater collection and treatment services for residents of the Thuan An, Di An, and Tan Uyen urban areas in Binh Duong Province."
2368,The project will also bring indirect positive benefits from improved water quality of the Dong Nai and Sai Gon Rivers and to the people and economy downstream in the Dong Nai and Binh Duong Provinces and in HCMC.
2369,"However, the project will also likely have some E&S risks associated with activities under Component 1."
2370,"The project is being implemented under the World Bank’s Environmental and Social Framework (ESF) with the following relevant Environmental and Social Standards (ESS): ESS1 (Assessment and Management of Environmental and Social Risks and Impacts); ESS2 (Labor and Working Conditions); ESS3 (Resource Efficiency and Pollution Prevention and Management); ESS4 (Community Health and Safety); ESS5 (Land Acquisition, Restrictions on Land Use and Involuntary Resettlement); ESS6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources); ESS8 (Cultural Heritage); and ESS10 (Stakeholder Engagement and Information Disclosure)."
2371,"An Environmental and Social Impact Assessment (ESIA), in accordance with ESS1 and the other relevant ESS, has been carried out by the WWMB to identify and assess E&S risks and impacts and to provide information and data for the preparation of mitigation measures and E&S instruments."
2372,"The potential E&S risks and impacts are assessed to be moderate to substantial but mostly temporary, predictable, and/or reversible."
2373,"The ESF instruments have been prepared according to the ESIA, and disclosed locally on websites of Binh Duong Province and district offices (on December 2, 2022) and on the external website of the World Bank (on November 22, 2022)."
2374,Environmental and Social Management Plan (ESMP).
2375,An ESMP has been prepared as an integral part of the ESIA.
2376,"The ESMP consists of mitigation, monitoring, and institutional measures to be carried out during project implementation and operation to avoid adverse E&S risks and impacts, offset them, or reduce them to acceptable levels."
2377,The ESMP also includes actions needed to implement the measures.
2378,It will require the contractor of each construction package to prepare contractor’s ESMPs for addressing common construction impacts and relevant specific mitigation measures.
2379,"The ESMP also includes technical design and management measures to address the environmental risks and impacts (sludge, odor, risks of WWTP malfunction, and so on) during operation of the WWTPs."
2380,Labor management.
2381,"The project will involve the following personnel: (a) direct workers (PMU staff or individual consultants employed by the PMU), (b) contracted workers (for example, working for construction enterprises/contractors), and (c) primary suppliers’ workers."
2382,The WWMB has developed Labor Management Procedures (LMP) under the national law and in accordance with the requirements of ESS2 on Labor and Working Conditions.
2383,These procedures are designed to protect workers employed under the project and include requirements to implement adequate occupational health and safety measures for workers.
2384,The LMP identifies the main labor requirements and risks associated with the project and is designed to help the WWMB in determining the resources necessary to address the   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) project’s labor issues.
2385,The LMP sets out details of the grievance redress mechanisms (GRMs) that will be provided for direct and contracted workers and describes the way in which these workers will be made aware of the mechanism.
2386,"The LMP also incorporates labor requirements into the environmental, social, health, and safety (ESHS) specifications of the procurement documents and contracts with contractors and supervising firms."
2387,The LMP is subject to changes and will be reviewed and updated throughout development and implementation of the project to be sensitive to gender-based violence (GBV)/sexual exploitation and abuse (SEA)/sexual harassment (SH) issues and the ethical treatment and resolution of such complaints in a manner proportionate to the potential risks and impacts of the project.
2388,Community health and safety.
2389,"Regarding community health and safety, the ESIA finds that project activities can increase community exposure (especially vulnerable communities) to risks and impacts, including road traffic safety during construction; risks due to unexploded ordnances left from the war during project implementation; water pollution and environmental pollution due to emissions, odors, and generation of substantial amount of sludge from the WWTPs and maintenance of the sewerage collection system; and SEA, SH, and communicable diseases (HIV/AIDS, COVID-19)."
2390,"The WWMB has prepared an ESMP with measures to avoid, mitigate, and manage the identified potential risks and impacts according to the requirements of ESS4."
2391,Land acquisition and resettlement.
2392,"In terms of land acquisition and resettlement, the project will require about 12 ha of agricultural land from 94 households, from which 25 households are defined as significantly affected, but no household is being required to relocate."
2393,The land that will be acquired is not of high carbon stock or high biodiversity areas.
2394,"The expansion of the WWTPs in Thuan An and Di An Cities is implemented within the boundaries of the existing WWTPs, where land was previously reserved for their expansion."
2395,The project may temporarily affect local businesses during installation of sewerage pipelines.
2396,"The ESIA confirmed that there is no impact beyond the project footprint, and all proposed activities of the project were identified and approved by Binh Duong PPC."
2397,A Resettlement Plan has been prepared for the project according to the requirements of ESS5.
2398,"The Resettlement Plan was cleared by the World Bank, and it was disclosed locally, at the office of PMU, city/town PCs, ward/commune PCs, and Binh Duong provincial portal, on December 7, 2022."
2399,"The Resettlement Plan was also disclosed on the World Bank’s external website on November 22, 2022."
2400,"Land acquisition, compensation, support, and site clearance for the project will be implemented in compliance with the approved Resettlement Plan and monitored by a third party to be recruited by the PMU."
2401,Implementation of the Resettlement Plan will be considered completed when the adverse impacts of resettlement have been addressed in a manner that is consistent with the relevant plan as well as the objectives of ESS5.
2402,The mitigation measures of economic displacement will be considered completed when the external completion audit concludes that affected persons or communities have received all assistance for which they are eligible and have been provided with adequate opportunity to reestablish their livelihoods.
2403,Environmental and Social Commitment Plan (ESCP).
2404,"The WWMB has prepared an ESCP jointly with the World Bank, which has been agreed and is legally binding."
2405,It includes E&S measures and an implementation time frame to which the PPC has committed.
2406,An adaptive management process for addressing changes or unforeseen circumstances is also set out in the ESCP.
2407,Mitigation measures for site-specific impacts will be managed through the implementation of required E&S assessment instruments that have been prepared to meet the objectives of the relevant ESSs.
2408,"The ESCP also includes the requirement for the recruitment of a third-party monitor by the PMU to provide independent monitoring on the implementation of E&S risks and impacts management, as well as GBV/SEA/SH."
2409,"The draft ESCP was consulted with relevant agencies and disclosed on the Binh Duong Province’s website on December 7, 2022, and on the World Bank external website on November 22, 2022."
2410,A Stakeholder Engagement Plan (SEP) has been prepared by the PMU with specific identification and analysis of stakeholders.
2411,"The SEP outlines the ways in which the project team will communicate with stakeholders and includes a mechanism by which people can raise concerns, provide feedback, or make complaints about the project and any project-   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) related activities."
2412,"It will provide stakeholders with timely, relevant, understandable, and accessible information and consult with them in a culturally appropriate manner, free of manipulation, interference, coercion, discrimination, and intimidation."
2413,"The SEP also focuses on awareness raising and stakeholder engagement with disadvantaged or vulnerable individuals or groups and will be adapted to consider such groups’ or individuals’ sensitivities, concerns, and cultural aspects, and ensure a full understanding of project activities and benefits."
2414,"A GRM has been established at the project level to assist in resolving complaints and grievances in a timely, effective, and efficient manner."
2415,"Specifically, it provides a transparent and credible process for fair, effective, and lasting outcomes."
2416,It also builds trust and cooperation as an integral component of broader community consultation that facilitates corrective actions.
2417,"The SEP was disclosed on Binh Duong Province’s website on December 7, 2022, and on the World Bank’s external website on November 22, 2022."
2418,Citizen Engagement 83.
2419,"During preparation of the ESIA, ESCP, SEP, Resettlement Action Plan (RAP), LMP, and ESMP, consultations have been conducted with locally affected households; beneficiaries; vulnerable groups, including women; and local nongovernmental organizations."
2420,"In the implementation phase, consultation with stakeholders will continue to be conducted during the technical design, implementation of E&S risk and impact management, and M&E of the project implementation."
2421,"Mechanisms for consultation with and participation of different stakeholders, including women and vulnerable people, are established in the SEP, RAP, and ESIA/ESMP, including targeted communication tools, consultative processes such as workshops and focus group discussions, and feedback mechanisms to build ownership of project interventions and enhance the sustainability of project outcomes."
2422,The mechanisms also ensure that women are given opportunity to raise their will or voice rather than simply attending the consultations.
2423,"As part of Component 2, the project will promote service-oriented management that will include feedback from consumers on the services provided to them."
2424,"The IEC program will help create an interactive space between the province, the districts, and citizens."
2425,This platform will be used to discuss performance and satisfaction surveys and project issues and will agree on joint measures at the local level and establish the procedures for two-way communication with citizens on key service issues and areas of reform (including tariff adjustments).
2426,"Satisfaction with the service improvements will be tracked at the project start, at midterm, and upon completion."
2427,"In addition, the survey will assess awareness about the project and satisfaction with the quality of the citizen engagement process."
2428,"To increase accountability and improve the outcomes of the surveys and action plans for service improvements, such plans will be discussed at customer and stakeholder engagement meetings or surveys with direct and active participation of both men and women."
2429,"The project’s Results Framework includes indicators of the actual percentage of customers who are satisfied, disaggregated by gender, to measure progress in key consultation and engagement activities."
2430,Gender 85.
2431,"Binh Duong BEPCC represented by leaders of provincial departments, has a broad advisory and coordination role for the PPC."
2432,Only around 10 percent of the board membership is women.23 This presents a risk that issues specifically relevant to women are not raised.
2433,"This gender gap is not aligned with the Environmental Protection Law (2014), which promotes gender equality and development as a key underlying principle of environmental protection activities, nor is it in line with the National Strategy for Gender Equality (2021-2030), with the objective to increase female representation in leadership and management."
2434,"During project preparation, it was observed that provincial managers (including provincial technical department heads and municipal people’s committee chairs) remain unaware of the linkage between wastewater-management issues and gender-equality objectives."
2435,"Moreover, there is a general lack of appreciation of the value of female representation in leadership and management positions."
2436,This is further exacerbated by women’s lower 23 The current BEPCC has 25 male members and 3 female ones.
2437,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) access to and participation in trainings and capacity-building activities.
2438,"Greater representation of women in policy and regulatory roles helps increase awareness of the concerns and needs of women24.. Their perspectives can influence how sectors are governed, by whom, and how resources are accessed and controlled."
2439,There is a growing body of rich literature on the positive link between gender diversity and institutional effectiveness.
2440,"Evidence shows that institutions that are inclusive tend to perform better than those that are less gender diverse, both financially and in their ability to deliver and manage water resources."
2441,"25 Similarly, some studies show that women express more concern for and take action to help the environment than men.26 86."
2442,"Many households in the project cities use water from drilled wells polluted by untreated household wastewater, which is likely to cause water-borne diseases."
2443,"Given the role of women in water provisioning for households, they are at increased risk of exposure to transmission and contraction of diseases27."
2444,"Also, Binh Duong province accommodates one of the country’s largest migrant worker populations, which is disproportionately female (many women migrate for work in the province’s industrial zones)."
2445,Migrant worker communities tend to live in cheaper rented accommodation polluted with wastewater discharged directly from surrounding neighborhoods.
2446,"Meanwhile, gender-disaggregated data on water-borne diseases have not been analyzed and reported, and therefore the different health risks between men and women are not well understood, and different prevention and mitigation strategies have not been developed."
2447,"In response to the above concerns, the provincial authorities will set a specific gender target to increase representation of women in BEPCC to 30 percent by the end of the project."
2448,"Moreover, a representative from the provincial women’s union will be included in BEPCC."
2449,"This structural change is likely to facilitate an institutional shift and lead to more opportunities for BEPCC to understand and find solutions to the environmental risks for women, local and migrant alike, including those related to wastewater collection and treatment."
2450,"The project will work with the regional leadership training center28 to provide trainings on creating institutions that promote gender equality in leadership, while building awareness and knowledge on gender issues and solutions in wastewater management."
2451,"The training will be provided to both female and male provincial leaders, some of whom will be nominated for membership of BEPCC."
2452,"Such training will help to reduce training/capacity gaps between female and male leaders, address gender norms that associates leadership with men or as a “male“ quality and enhance the capacity of BEPCC to promote women to participate actively and in more effective and meaningful ways in BEPCC."
2453,"Furthermore, the project will collaborate with municipal women’s unions to conduct awareness campaigns to increase household connections to the wastewater systems."
2454,"Also, they will raise awareness of hygiene practices, especially causes of water-borne diseases, and promote hand-washing and other hygiene practices to reduce vulnerability to water-borne diseases among women, men, and their families in the project communities.29 V. GRIEVANCE REDRESS SERVICES 24 World Bank, 2019."
2455,Women in Water Utilities: Breaking Barriers.
2456,"25 World Bank, 2019."
2457,Women in Water Utilities: Breaking Barriers.
2458,"26 For some of these studies, see Brough et al 2016."
2459,the Green - Feminine Stereotype and Its Effect on Sustainable Consumption.
2460,"Journal of Consumer Research, 43 (4): 567 – 582."
2461,"27 WHO, 2011, Taking sex and gender into emerging infectious disease programs: an analytical framework 28 This regional center belongs to Ho Chi Minh National Political Academy, which is responsible for providing training for mid- and high-level managers and leaders in the Communist Party and Government, central and local alike, across Viet Nam."
2462,The Academy runs a course for mid-level public officials titled “Women in Leadership” that promotes public institutions to address gender equality in leadership (sup ported by the World Bank Viet Nam Country Gender Program ASA).
2463,"So far, more than 45,000 male and female officials across the country have taken this course."
2464,29 The women’s union will have more opportunities to integrate these awareness-raising activities regarding wastewater management in other environment awareness campaigns in the province once it is represented in BEPCC.
2465,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) 88.
2466,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).
2467,The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns.
2468,Project affected communities and individuals may submit their complaint to the Bank’s independent Accountability Mechanism (AM).
2469,"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."
2470,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.
2471,"For information on how to submit complaints to the Bank’s Grievance Redress Service (GRS), visit "
2472,"For information on how to submit complaints to the Bank’s Accountability Mechanism, visit "
2473,KEY RISKS 89.
2474,The overall risk rating for the Project is assessed as Moderate.
2475,Combined E&S risk is rated Substantial.
2476,The E&S risk classification under the World Bank ESF is based on an assessment of inherent E&S risks and impacts of the project.
2477,"While the social risk is rated Moderate, the environmental risk is rated Substantial as described below."
2478,Environmental risk is Substantial.
2479,"Due to potential risks and impacts to the environment and to people associated with construction and operation of the wastewater infrastructure, the environmental risk is assessed as Substantial."
2480,"Environmental risks and impacts during construction include degradation of the local air, soil, and water environment due to exhaust gas emission and waste generation and disposal; water quality degradation and impacts to aquatic species and irrigation activities due to moderate-scale dredging; traffic safety and business disturbance; worker and community health and safety; damages to existing weak structures and local houses due to dredging or piling; and safety risk due to unexploded ordnance left from the war."
2481,"The main environmental risks during operations include water pollution due to failure or malfunction of the WWTPs; environmental pollution due to emissions, odor, and generation of substantial amount of sludge from the WWTPs and maintenance of the sewerage collection system; and worker health and safety risks due to exposure to hazardous chemicals and pathogens."
2482,The risks and impacts during construction and operations are assessed as mostly reversible and are expected to be mitigated by good design and management practices.
2483,"Relevant measures to mitigate and manage these risks and impacts are provided in the ESIA, with reference to the World Bank Group’s Environmental, Health, and Safety Guidelines (WBG EHSG) on Water, and Good International Industry Practice."
2484,The key mitigation measures include the following: (a) using Environmental and Social Codes of Practice (ESCOP)—ESCOP will be applied to all bid packages by the contractors and supervised by the construction supervision consultant (or engineer); (b) bidding documents and construction contracts of each bid package will include the entire ESCOP and specific mitigation measures by type of construction activity and location consistent with the work content in the bid package; and (c) contractors will be required to prepare Site-Specific or Contractor’s Environmental and Social Management Plan and submit to the construction supervision consultant and the PMU for review and approval at least two weeks before construction commencement.
2485,  The World Bank Binh Duong Province’s Water Environment Improvement Project(P173716) VII.
2486,"RESULTS FRAMEWORK AND MONITORING @#&OPS~Doctype~OPS^dynamics@padannexresultframework#doctemplate PDO Indicators by PDO Outcomes Baseline Period 1 Period 2 Period 3 Period 4 Period 5 Closing Period Improve wastewater services Number of people who gained access to improved wastewater services as a result of the project (Number) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 32,600.00 73,300.00 115,400.00 217,700.00 301,300.00 374,900.00 ➢Tan Uyen City (Number) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 0.00 0.00 0.00 46,100.00 75,600.00 104,200.00 ➢Thuan An City (Number) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 15,500.00 32,700.00 52,200.00 80,400.00 107,500.00 126,400.00 ➢Di An City (Number) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 17,100.00 40,600.00 63,200.00 91,200.00 118,200.00 144,300.00 Reduce municipal wastewater pollution Additional pollutants removed by WWTPs: BOD5 (Metric tons/year) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 263.00 327.00 342.00 822.70 675.30 593.20 ➢Tan Uyen City (Metric tons/year) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0.00 0.00 0.00 0.00 371.70 238.30 230.20 ➢Thuan An City (Metric tons/year) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 125.00 138.00 159.00 226.00 219.00 152.00 ➢Di An City (Metric tons/year) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029   The World Bank Binh Duong Province’s Water Environment Improvement Project(P173716) 0.00 138.00 189.00 183.00 225.00 218.00 211.00 Additional pollutants removed by WWTPs: Total Nitrogen (Metric tons/year) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 46.00 57.00 60.00 145.60 119.00 104.60 ➢Tan Uyen City (Metric tons/year) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 0.00 0.00 0.00 65.60 42.00 40.60 ➢Thuan An City (Metric tons/year) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 22.00 24.00 28.00 40.00 39.00 27.00 ➢Di An City (Metric tons/year) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 24.00 33.00 32.00 40.00 38.00 37.00 Intermediate Indicators by Components Baseline Period 1 Period 2 Period 3 Period 4 Period 5 Closing Period Component 1: Wastewater infrastructure development Number of new household connections to the wastewater system (Number) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 4,200.00 9,400.00 14,800.00 28,800.00 40,800.00 51,800.00 ➢Tan Uyen City (Number) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 0.00 0.00 0.00 6,000.00 10,000.00 14,000.00 ➢Thuan An City (Number) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 2,000.00 4,200.00 6,700.00 10,700.00 14,700.00 17,700.00 ➢Di An City (Number) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 2,200.00 5,200.00 8,100.00 12,100.00 16,100.00 20,100.00 Additional volumes of municipal wastewater treated by the WWTPs with demonstrated GHG emission reduction (Cubic meters/year) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 1,551,250.00 1,927,200.00 2,011,150.00 4,839,900.00 3,971,200.00 3,489,400.00   The World Bank Binh Duong Province’s Water Environment Improvement Project(P173716) ➢Tan Uyen City (Cubic meters/year) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Dec/2029 0.00 0.00 0.00 0.00 2,186,350.00 1,401,600.00 1,354,150.00 ➢Thuan An City (Cubic meters/year) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 737,300.00 813,950.00 934,400.00 1,328,600.00 1,288,450.00 894,250.00 ➢Di An City (Cubic meters/year) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 813,950.00 1,113,250.00 1,076,750.00 1,324,950.00 1,281,150.00 1,241,000.00 Length of sewer constructed (Kilometers) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 0.00 223.80 527.90 629.90 629.90 629.90 ➢Tan Uyen City (Kilometers) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 0.00 36.40 211.40 311.00 311.00 311.00 ➢Thuan An City (Kilometers) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 0.00 68.20 109.00 109.00 109.00 109.00 ➢Di An City (Kilometers) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 0.00 119.20 207.40 209.80 209.80 209.80 Component 2: Institutional strengthening and implementation support Provincial wastewater management orientation adopted (Text) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 No - - Draft orientation Orientation accepted Orientation approved Orientation approved by reviewed and by PMU and by PPC PPC consulted submitted to PPC O&M contracts to qualified operators awarded (Number) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 0.00 0.00 0.00 2.00 2.00 3.00 Transfer software and equipment for asset management (Text) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029   The World Bank Binh Duong Province’s Water Environment Improvement Project(P173716) No - Procurement Supplied and installed System trials, System accepted by System accepted by PMU commenced commissioning & PMU training Share of active members of Provincial Steering Board for Environmental Protection and Climate Change (BEPCC) that are female (Percentage) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 11.00 11.00 15.00 20.00 25.00 30.00 30.00 Customer satisfaction rate to the improved wastewater service (Percentage) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 0.00 20.00 20.00 40.00 40.00 65.00 ➢from which percentage of wormen (Percentage) Oct/2023 Oct/2029 50.00 50.00 Number of government officials and utility professionals trained (Number) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 0 4.00 12.00 16.00 16.00 16.00 ➢Percentage of which female (Percentage) 0.00 0 25.00 25.00 44.00 44.00 44.00 Number of people reached through IEC programs to support household connections and improved handwashing and hygiene awareness and practice (Number) Oct/2023 Dec/2024 Dec/2025 Dec/2026 Dec/2027 Dec/2028 Oct/2029 0.00 8,150.00 18,325.00 28,850.00 54,425.00 75,325.00 93,725.00   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Monitoring & Evaluation Plan: PDO Indicators by PDO Outcomes Improve wastewater services Number of people who gained access to improved wastewater services as a result of the project (Number) This indicator measures beneficiaries based on the number of new connections to the system."
2487,"Beneficiaries also include Description people who will access wastewater services through institutional connections (markets, schools, offices etc.)."
2488,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2489,"Results achieved by end of December every year, staring from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Tan Uyen City (Number) This indicator measures beneficiaries based on the number of new connections to the system."
2490,"Beneficiaries also include Description people who will access wastewater services through institutional connections (markets, schools, offices etc.)."
2491,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2492,"Results achieved by end of December every year, staring from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Thuan An City (Number) This indicator measures beneficiaries based on the number of new connections to the system."
2493,"Beneficiaries also include Description people who will access wastewater services through institutional connections (markets, schools, offices etc.)."
2494,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2495,"Results achieved by end of December every year, staring from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Di An City (Number) This indicator measures beneficiaries based on the number of new connections to the system."
2496,"Beneficiaries also include Description people who will access wastewater services through institutional connections (markets, schools, offices etc.)."
2497,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2498,"Results achieved by end of December every year, staring from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Reduce municipal wastewater pollution Additional pollutants removed by WWTPs: BOD5 (Metric tons/year) This indicator will track pollutants (BOD5) removed by WWTP within the project areas, as a result of this project."
2499,The Description values of reduced BOD5 are based on assumption that influent water quality is used for the design and effluent water quality follows the QCVN 14-2008 (category A).
2500,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2501,"Results achieved by end of December every year, staring from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Tan Uyen City (Metric tons/year) This indicator will track pollutants (BOD5) removed by WWTP within the project areas, as a result of this project."
2502,The Description values of reduced BOD5 are based on assumption that influent water quality is used for the design and effluent water quality follows the QCVN 14-2008 (category A).
2503,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2504,"Results achieved by end of December every year, staring from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Thuan An City (Metric tons/year) This indicator will track pollutants (BOD5) removed by WWTP within the project areas, as a result of this project."
2505,The Description values of reduced BOD5 are based on assumption that influent water quality is used for the design and effluent water quality follows the QCVN 14-2008 (category A).
2506,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2507,"Results achieved by end of December every year, staring from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Di An City (Metric tons/year) This indicator will track pollutants (BOD5) removed by WWTP within the project areas, as a result of this project."
2508,The Description values of reduced BOD5 are based on assumption that influent water quality is used for the design and effluent water quality follows the QCVN 14-2008 (category A).
2509,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2510,"Results achieved by end of December every year, staring from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Additional pollutants removed by WWTPs: Total Nitrogen (Metric tons/year) This indicator will track pollutants (TN) removed by WWTP within the project areas, as a result of this project."
2511,The values Description of reduced Nitrogen are based on assumption that influent water quality is used for the design and effluent water quality follows the QCVN 14-2008 (category A).
2512,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2513,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Tan Uyen City (Metric tons/year) This indicator will track pollutants (TN) removed by WWTP within the project areas, as a result of this project."
2514,The values Description of reduced Nitrogen are based on assumption that influent water quality is used for the design and effluent water quality follows the QCVN 14-2008 (category A).
2515,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2516,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Thuan An City (Metric tons/year) This indicator will track pollutants (TN) removed by WWTP within the project areas, as a result of this project."
2517,The values Description of reduced Nitrogen are based on assumption that influent water quality is used for the design and effluent water quality follows the QCVN 14-2008 (category A).
2518,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2519,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Di An City (Metric tons/year) This indicator will track pollutants (TN) removed by WWTP within the project areas, as a result of this project."
2520,The values Description of reduced Nitrogen are based on assumption that influent water quality is used for the design and effluent water quality follows the QCVN 14-2008 (category A).
2521,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2522,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Monitoring & Evaluation Plan: Intermediate Results Indicators by Components Component 1: Wastewater infrastructure development Number of new household connections to the wastewater system (Number) Description This indicator measures the number of new households connected to the sewerage system, as a result of this project."
2523,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2524,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Tan Uyen City (Number) Description This indicator measures the number of new households connected to the sewerage system, as a result of this project Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023."
2525,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Thuan An City (Number) Description This indicator measures the number of new households connected to the sewerage system, as a result of this project Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023."
2526,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Di An City (Number) Description This indicator measures the number of new households connected to the sewerage system, as a result of this project   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023."
2527,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Additional volumes of municipal wastewater treated by the WWTPs with demonstrated GHG emission reduction (Cubic meters/year) This indicator will track volumes of wastewater treated by WWTPs that have applied technologies to reduce GHG Description emissions under this project, including resource recycling and reuse, energy efficiency improvement and renewable energy."
2528,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2529,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Tan Uyen City (Cubic meters/year) This indicator will track volumes of wastewater treated by WWTPs that have applied technologies to reduce GHG Description emissions under this project, including resource recycling and reuse, energy efficiency improvement and renewable energy."
2530,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2531,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Thuan An City (Cubic meters/year) This indicator will track volumes of wastewater treated by WWTPs that have applied technologies to reduce GHG Description emissions under this project, including resource recycling and reuse, energy efficiency improvement and renewable energy."
2532,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2533,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Di An City (Cubic meters/year) This indicator will track volumes of wastewater treated by WWTPs that have applied technologies to reduce GHG Description emissions under this project, including resource recycling and reuse, energy efficiency improvement and renewable energy."
2534,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2535,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Length of sewer constructed (Kilometers) Description This indicator measures the total length of new sewer constructed under the project, expressed in kilometers (km) Frequency Annual Data source PMU/Consultant reports   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Methodology for Data Baseline is at year 2023."
2536,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Tan Uyen City (Kilometers) Description This indicator measures the total length of new sewer constructed under the project, expressed in kilometers (km) Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023."
2537,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Thuan An City (Kilometers) Description This indicator measures the total length of new sewer constructed under the project, expressed in kilometers (km) Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023."
2538,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Di An City (Kilometers) Description This indicator measures the total length of new sewer constructed under the project, expressed in kilometers (km) Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023."
2539,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Component 2: Institutional strengthening and implementation support Provincial wastewater management orientation adopted (Text) Description This indicator monitors the development and approval of the provincial wastewater management orientation."
2540,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2541,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection O&M contracts to qualified operators awarded (Number) This indicator will track progress of technical assistance to support improved private sector engagement (non-monetary Description private capital enabling) for operations and maintenance of the sewerage system."
2542,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2543,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Transfer software and equipment for asset management (Text) This indicator monitors progress of supply, installation and operations of software and equipment for a asset Description management system."
2544,Frequency Annual   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2545,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Share of active members of Provincial Steering Board for Environmental Protection and Climate Change (BEPCC) that are female (Percentage) Description This indicator captures the percentage of female board members of BEPCC Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023."
2546,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Customer satisfaction rate to the improved wastewater service (Percentage) Pecentage of customers responded positively to the improvement of wastewater service at satisfaction surveys."
2547,"The first Description surveys wil be conducted at yaer 1, 4 and 6 of the project implementation."
2548,"Frequency In year 1, at mid-term and at project closing Data source PMU/Consultant reports Methodology for Data PMU will conduct sampled surveys with TOR acceptable to the Bank among the residents of the project cities on their Collection sastifaction to the wastewater service provided Responsibility for Data PMU/Consultant Collection from which percentage of wormen (Percentage) Description this is percentage of wormen among respondents positively responded during the customer satisfaction surveys Frequency In year 1, at mid-term and at project closing Data source PMU/Consultant reports Methodology for Data PMU will conduct sampled surveys with TOR acceptable to the Bank among the residents of the project cities on their Collection sastifaction to the wastewater service provided Responsibility for Data PMU/Consultant Collection Number of government officials and utility professionals trained (Number) This indicator will monitor the number of government officials and water utility professionals participating in trainings on Description project management and asset management."
2549,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2550,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Percentage of which female (Percentage) this is percentage of wormen among the number of government officials and water utility professionals participating in Description trainings on project management and asset management Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023."
2551,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection Number of people reached through IEC programs to support household connections and improved handwashing and hygiene awareness and practice (Number)   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Description This indicator will record the number of people reached through the counterpart funded IEC activities."
2552,Frequency Annual Data source PMU/Consultant reports Methodology for Data Baseline is at year 2023.
2553,"Results achieved by end of December every year, starting from year 2024, except for the last Collection year of project implementation Responsibility for Data PMU/Consultant Collection   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) ANNEX 1: Implementation Arrangements and Support Plan COUNTRY: Socialist Republic of Viet Nam Binh Duong Province’s Water Environment Improvement Project Project Institutional and Implementation Arrangements 1."
2554,The project will be implemented in a decentralized manner under the direction of the province’s and project towns’ administrations.
2555,The Binh Duong PPC is the decision-maker on the investment and is responsible for project preparation and implementation.
2556,"As per the PPC’s decision, the WWMB has been appointed as the project owner and will also serve as the PMU."
2557,"The PMU will be responsible for day-to-day project management, including procurement, FM, disbursements, M&E, safeguards management, audit management, quality and compliance oversight, and progress reporting."
2558,"The PMU will also monitor and coordinate project activities, including communications with the World Bank and government agencies."
2559,The PMU’s organizational structure and TORs for key positions have been agreed and are outlined in the Project Implementation Plan.
2560,The PMU structure includes three district-level units that will oversee day-to-day implementation and coordination with district authorities.
2561,Each district/town will sign a cooperation agreement with the PMU that will outline its roles and responsibilities in the execution of the project.
2562,Land acquisition and resettlement are the responsibility of district-level units.
2563,"The PMU will be supported by consultants for engineering design and construction supervision, for safeguards management, and for other critical areas of project implementation."
2564,"During project implementation, the PMU will be responsible for carrying out IEC activities, including carrying out willingness-to-pay studies and supporting the household connection policy."
2565,"Project implementation will require technical inputs, clearance, and/or facilitating support from various line departments: DPI, DoF, DARD, DOC, and DONRE."
2566,Such departments have specific roles and responsibilities during the review and appraisal processes on investment processing and financing and technical aspects for submission to the PPC for approval.
2567,"The coordination of inputs from each line department will be part of the role of the PMU, with support from the PPC."
2568,A PSC has been established to ensure a strong engagement and close collaboration among relevant provincial departments/agencies.
2569,"The PSC is chaired by the Vice Chairman of the Binh Duong PPC, with members from relevant provincial line departments/agencies/participating localities participating, to ensure timely coordination and effective sharing of information among the multiple departments."
2570,"Training will be provided during project implementation to the PMU in the areas of project management, ESF implementation, and M&E."
2571,"The PMU, supported by consultants, is responsible for collecting, interpreting, and reporting the project’s outcome and results indicators."
2572,"Relevant Central Government entities include Viet Nam’s Office of Government (OOG) and line ministries: Ministry of Planning and Investment (MPI), Ministry of Finance (MOF), Ministry of Foreign Affairs, Ministry of Justice, Ministry of   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Construction (MOC), Ministry of Agriculture and Rural Development (MARD), and MONRE."
2573,"While the OOG provides approval for the project’s inclusion in the Medium-Term Investment Program (MTIP), along with the Project Investment Policy (or pre-feasibility study), the other central line ministries have ‘state management’ roles and responsibilities as stipulated in Government Decree No."
2574,"114/2021/ND-CP, issued on December 16, 2021, on management and use of ODA capital and concessional loans (as amended), and other applicable decrees."
2575,"In short, the MPI will be the focal point in assisting the Government for unified state management of ODA and concessional loans; and the MOF is the official representative agency as the ‘borrower’ for ODA loans and/or concessional loans in the name of the state or the government from foreign sponsors."
2576,"Other ministries such as MOC, MARD, and MONRE will engage on technical appraisal and clearances as per the regulatory requirements."
2577,"FM, Disbursement, and Procurement FM and Disbursement Arrangements 8."
2578,"The WWMB (PMU) will be responsible for (a) project financial statements, (b) management of DA for project activities, (c) contract management and payments, and (d) maintenance of accounting records."
2579,The function of annual external audit will be independently performed by SAV or a qualified auditor under TOR acceptable to the World Bank.
2580,These FM arrangements meet the World Bank’s minimum FM requirements.
2581,The implementing agencies will use the FM policies and procedures that have been applied for existing projects in the implementation of the proposed project.
2582,These policies and procedures have been assessed as acceptable to the World Bank.
2583,"An FM action plan with time-bound actions and an ISP have been prepared to improve FM capacities, as well as to address FM risks that have been identified as part of the FM assessment of the project."
2584,An FM assessment for the proposed project has been carried out.
2585,It is noted that the satisfactory FM arrangements of the existing provincial PMU of Binh Duong will be followed for the proposed project.
2586,"The assessment has concluded that the project meets the World Bank’s FM requirements, as stipulated in the Bank Policy/Bank Directive for Investment Project Financing."
2587,"The main risks identified at appraisal include a potential delay/inadequacy of the country’s MTIP 2021– 2025 and the insufficient budget allocation for both ODA and counterpart fund to the province/project, which, if it occurs, will cause implementation delays."
2588,"To mitigate this risk, the PMU and Binh Duong PPC should work closely with the MPI to confirm inclusion of the project budget in the MTIP and establish, as needed, contingency resources."
2589,"While a shortage of counterpart funding is regarded as a potential risk to project implementation, a fiscal impact analysis has been conducted that demonstrates that Binh Duong Province has enough resources to implement the project."
2590,Binh Duong Province also has a track record of being able to sustainably mobilize financial resources to implement such projects.
2591,Table 1.1.
2592,"FM Action Plan Expected Date of Responsible Actions on FM Completion Agency 1 Appointment of qualified experienced officers to oversee FM of the project Done PMU 2 Project implementation Plan, with detailed FM section Done PMU 3 Package for financial audit included in Procurement Plan for first year Done PMU 4 MTIP 2021–2025 allocates adequate budget for the project Done (to be PPC, PMU updated yearly) 11."
2593,"Accounting policies, systems, and procedures."
2594,The project will adopt accounting policies and procedures applied   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) by the Vietnamese Government and acceptable to the World Bank.
2595,Internal controls.
2596,The PMU is responsible for ensuring that an adequate internal control framework and internal controls are in place and operating for the project.
2597,"Overall, the internal control system at the PMU is in place, in accordance with Government regulations, including authorization of payments and transactions, segregation of duties, asset physical management, cash management, budget formulation and variance analysis, and financial reporting."
2598,Funds flow.
2599,A DA will be opened by the Binh Duong PMU at a commercial bank to receive funds for project activities.
2600,Figure 1.1.
2601,Funds Flow Diagram for Project’s Components c BD PMU DA at IBRD 1 com.
2602,bank MOF b a Binh Duong Binh Duong PMU f e PMU acct at BD ST d Suppliers/ Consultants (a) The PMU prepares the withdrawal application and sends it to the MOF-Debt Management and External Finance Department for co-signature.
2603,(b) The PMU submits the withdrawal application to IBRD.
2604,(c) IBRD disburses money to the DA of the PMU at a commercial bank acceptable to IBRD.
2605,(d) Suppliers/consultants submit claim for expenditures to the PMU.
2606,"(e) The PMU reviews, certifies, and then submits to the State Treasury for its verification."
2607,(f) The Binh Duong PMU makes payment to the suppliers/consultants from the DA.
2608,External audit.
2609,Project financial statements will be prepared by the Binh Duong PMU and will be audited in accordance with international auditing standards and in compliance with the independent auditing regulations of Viet Nam.
2610,The SAV or a qualified auditor will be appointed as the external auditor for this project under TOR acceptable to the World Bank.
2611,The PMU will submit its audited project financial statements to the World Bank annually by June 30 of the following year.
2612,Disbursement arrangement.
2613,The disbursement methods will be Advances and Direct Payments.
2614,"For Advances, funds flow will be channeled through the DA and the ceiling of the DA is US$3 million."
2615,"For Direct Payments, the minimum value of a direct payment is US$500,000."
2616,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) 16.
2617,Supporting documentation required for documenting eligible expenditures paid from the DA are Statements of Expenditures and Records.
2618,"The frequency for reporting eligible expenditures (consisting of goods, works, and consulting services exclusive of taxes) paid from the DA is quarterly."
2619,"The Reimbursement, Special Commitment, and Direct Payment disbursement methods will also be available."
2620,Reimbursements would also be documented by Statements of Expenditures and Records.
2621,Direct Payments will be documented by Records.
2622,"The minimum application size for Reimbursement, Special Commitment, and Direct Payments is included in the Disbursement and Financial Information Letter (DFIL)."
2623,Procurement 17.
2624,Applicable procurement rules.
2625,Procurement activities financed by the World Bank under the project shall be carried out in accordance with the World Bank’s Procurement Regulations.
2626,"However, for those works contracts that are procured using the RFB method with the national market approach, national competitive procedures will be used, subject to further modifications and waivers required by the World Bank."
2627,"These modifications and waivers, which will be incorporated into the agreed Procurement Plan, include (a) non-application of domestic preference, (b) assurance of adequate time for bid preparation (at least 30 days for large-value contracts), (c) use of harmonized model bidding documents agreed with the World Bank, (d) no bid rejection for minor deviations or on the basis of comparison with cost estimates, (e) implementation of an effective mechanism for receiving and handling procurement complaints, and (f) incorporation of enhanced E&S requirements as described in the World Bank’s ESF."
2628,"Descriptions of procurement activities, PPSD, and Procurement Plan."
2629,"Civil works contracts proposed for World Bank financing under the project include construction of several WWTPs of 20,000 m3 per-day capacity, sewage collection and network expansions, including sewage pumping stations for Tan Uyen, Thuan An, and Di An Cities, and a drainage canal adjacent to the WWTP in Tan Uyen City."
2630,These civil works account for 98 percent of the total World Bank financing amount.
2631,Consulting services proposed for World Bank financing (2 percent) include construction supervision activities under Component 2.
2632,"During the project preparation, the PMU prepared a PPSD which was reviewed and agreed with the World Bank."
2633,"This PPSD recommends the following procurement approaches to be followed to achieve the PDOs and deliver the best value for money: (a) the civil works contract for the WWTP in Tan Uyen, which has a large value (US$30 million) and higher technical complexity, should be procured through the RFB method following the international market approach; (b) the large-value consulting service contract for construction supervision and contract management should be procured using the QCBS method following international market approach; and (c) other civil works contracts of smaller value and lower risk should be procured through the RFB method with national market approach using the e-bidding process in the VNEPS, which is applicable to World Bank/Asian Development Bank-financed projects."
2634,"Based on this PPSD, the PMU also developed a detailed Procurement Plan for the initial 18 months of project implementation."
2635,"PMU procurement capacity, risk assessment and mitigation measures, and World Bank review and support."
2636,The PMU will be responsible for day-to-day procurement and contract management under the proposed project.
2637,"The PMU is well organized, adequately staffed, and has experience applying World Bank procurement procedures through the successful implementation of the World Bank-financed Urban Water and Wastewater Project (closed in 2019)."
2638,The World Bank team has conducted a project procurement risk assessment.
2639,"This assessment identified the following key risks to project procurement: (a) the PMU still lacks knowledge and experience with the World Bank’s Procurement Regulations, despite its good experience with the previous World Bank-financed project; (b) the large volume of project procurement activities (compared with the previous project) could lead to significant delays if the preparation of technical designs, specifications, cost estimates, and bidding documents is delayed due to lack of or untimely allocation of counterpart budget; (c) procurement of WWTP contracts, which account for a major proportion of the entire project, may face integrity concerns, as happened in procurement of similar contracts in other World Bank-financed projects; and (d) land acquisition   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) difficulties and prolonged ODA fund allocation procedures may cause substantial delays to contract implementation."
2640,"To mitigate the above risks, the following key measures will be implemented throughout project preparation and implementation: (a) conducting intensive training for the PMU on the World Bank’s Procurement Regulations and contract management; (b) recruiting qualified external procurement and contract management support to the PMU; (c) increasing readiness for procurement by ensuring that technical designs, specifications, cost estimates, and bidding documents for at least 30 percent of project procurement activities are completed before project effectiveness; (d) carrying out enhanced due diligence throughout the procurement and contract management process, enforcing appropriate codes of conduct on avoidance of conflicts of interest and prevention of fraud and corruption for all PMU staff/officials and contractors, and applying e-bidding for all contracts that are procured using RFB method with national market approach; and (e) properly preparing budget plans and closely following up with relevant government agencies to ensure adequate fund allocation (both counterpart and World Bank funds) in a timely manner."
2641,"The project procurement risk, after the above mitigation measures have been undertaken, is rated Moderate."
2642,"The World Bank will conduct prior review with enhanced due diligence for high-risk, high-value procurement activities according to the mandatory procurement prior-review thresholds set forth in the ‘Bank Procedure–- Procurement in IPF and Other Operational Procurement Matters’."
2643,"For other procurement activities not subject to prior review, the World Bank will carry out post review of at least 20 percent of procurement transactions."
2644,The World Bank will also provide hands-on procurement advice and intensive support during ad-hoc technical and regular supervision missions.
2645,Implementation Support 22.
2646,The ISP provides the framework for the World Bank’s operational approach to supporting implementation of the project and monitoring implementation progress.
2647,"The ISP has been developed considering (a) the risks identified for the project, (b) the importance of large civil-works contracts in overall implementation and in the achievement of PDO, and (c) the importance of E&S safeguards."
2648,The ISP reflects these key considerations.
2649,"The ISP will involve (a) hands-on operational support, (b) close and ongoing communications with the PMU with respect to procurement and contract implementation issues, (c) appropriate M&E arrangements, and (d) semiannual implementation support missions involving World Bank staff and technical consultants."
2650,This approach will provide comprehensive support and oversight for project implementation and enable quick and responsive interactions between project officials and World Bank staff.
2651,Technical implementation support.
2652,"During the implementation phase, the task team will continue to engage experienced civil engineers to ensure the technical quality of outputs."
2653,"Support will also include expert review of bidding documents and technical proposals, selection of wastewater treatment technologies, and recycling of sludge byproducts."
2654,"During the construction phase, the engineer on the team will provide supervision support to ensure the quality of works and safety."
2655,"Given the shortcomings in construction supervision observed in water supply and sanitation projects, attention will be paid to ensure that supervision systems are in place and are being followed closely."
2656,"Technical implementation missions will take place three times a year during the first 18 months of project implementation, followed by semiannual missions."
2657,The engineer will carry out site visits where works are ongoing or where service has recently commenced.
2658,The task team will also provide expert support to the design and implementation of the IEC activities and questionnaires to evaluate the results.
2659,Institutional strengthening support.
2660,The project focuses on strengthening water sector institutions at the local and central level for improved service delivery.
2661,The World Bank will offer technical support through this process by deploying specialized skills relevant to the planned reform activities.
2662,"This will include an institutional specialist with experience in water sector reforms (planning and implementation) and a financial specialist with experience in utility   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) finances, tariff structuring, investment planning, and financial regulation."
2663,Institutional strengthening support will be implemented two times a year for the full project period.
2664,Fiduciary implementation support.
2665,"During project implementation, the task team will supervise the project’s FM arrangements in the following ways: (a) review the project’s quarterly interim financial reports as well as the project’s and entity’s annual financial statements, the auditor’s reports and Management Letters, and remedial actions recommended in the auditor’s Management Letters and (b) during the World Bank team’s on-site missions, review the following key areas: project accounting and internal control systems; budgeting and financial planning arrangements; disbursement arrangements and financial flows, including counterpart funds, as applicable; and any incidents of corrupt practices involving project resources."
2666,"As required, a World Bank-accredited FM specialist will participate in the implementation support and supervision process."
2667,The procurement specialist will lead procurement-focused missions depending on the needs and as agreed with the PMUs.
2668,The FM specialist and procurement specialist will also help identify capacity-building needs to strengthen procurement and FM capacity.
2669,Formal FM and procurement supervision will be carried out semiannually as part of the overall project supervision.
2670,"The World Bank will provide support to the PMU for the market analysis and reviewing the bidding documents to ensure that selection of a wastewater system operator will be based on efficiency and cost-effectiveness, following transparent and competitive principles."
2671,E&S risk and impact management implementation support.
2672,The World Bank’s supervision team includes an environmental specialist and a social development specialist who will review the implementation of the project’s E&S instruments and provide guidance to the PMU and other implementation agencies to ensure the implementation of the project in compliance with the World Bank’s ESF and ESS.
2673,"Similarly, the World Bank’s E&S specialists will supervise the implementation of mitigation measures of E&S risks and impacts related to the project."
2674,"In addition to regular implementation support, the World Bank will closely monitor the hiring process of the consultants for project implementation, design review, and construction supervision, who will have capacity-building and support functions."
2675,"In addition, the World Bank team will provide guidance to the independent monitoring consultants, including reviewing their reports to minimize potential E&S risks."
2676,"This arrangement, including close implementation support from the World Bank, will enable the provision of the necessary support throughout the implementation of the project and will build capacity of the PMU."
2677,"The following ISP (table 1.2) reflects estimates of the skills, timing, and resource requirements over the implementation period of the project."
2678,"Keeping in mind the need to maintain flexibility over project activities from year to year, the ISP will be reviewed from time to time to ensure that it continues to meet the implementation support needs of the project."
2679,Table 1.2.
2680,Annual Resource Estimates for Implementation Support Skills Needed Number of Weeks Number of Trips Comments Task team leaders 10 6 Field-based staff Wastewater/Civil engineer 6 4 Field-based staff/Consultant Institutional specialist 4 2 HQ staff/International consultant Financial specialist 4 2 HQ staff/International consultant Environmental specialist 4 4 Field-based staff Social development specialist 4 4 Field-based staff FM specialist 2 2 Field-based staff   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Procurement specialist 4 2 Field-based staff M&E specialist 2 2 Field-based staff Communication specialist 1 1 Field-based staff Health specialist 1 1 Field-based staff Gender specialist 1 1 Field-based staff   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) ANNEX 2: Detailed Project Description COUNTRY: Viet Nam Binh Duong Province’s Water Environment Improvement Project Context Binh Duong Province 1.
2681,"Binh Duong Province is in southeast Viet Nam, 30 km from the center of HCMC along Highway 13, within the SKER (which includes eight provinces: HCMC, Dong Nai, Binh Duong, Ba Ria–- Vung Tau, Binh Phuoc, Tay Ninh, Long An, and Tien Giang)."
2682,"The province is located within the basin of the Dong Nai River,30 with an area of 2,694.43 km (accounting for about 0.83 percent of the national area and about 12 percent of the southeast area), and includes three cities (Thu Dau Mot, Thuan An, and Di An), two towns (Ben Cat and Tan Uyen) and four rural districts (Bau Bang, Dau Tieng, Phu Giao, and Bac Tan Uyen)."
2683,"Binh Duong is the road traffic hub of the region with the Asia Highway, National Highway 1K, and National Highway 1A, and it is the gateway of HCMC to the center and north of the country (see annex 5)."
2684,Binh Duong has experienced the highest economic growth and most dynamic industrial development in the country over the last 10 years.
2685,"In 2021, the total provincial product increased by about 2.79 percent; average GDP per capita is VND 153.6 million (about US$ 6,540) per person."
2686,"The annual budget revenue increased by about 10 percent in 2018 to VND 46,500 billion (about US$2 billion); the annual contribution to the central state budget is ranked fourth in the country (excluding the environmental resource tax)."
2687,"The population as of April 1, 2019,31 was 2,426,561; by the end of 2019, it was estimated to be about 2,504,400."
2688,The population density is about 900 people per km.
2689,Binh Duong Province’s population ranks 7th in Viet Nam and the province has a very high and consistent population growth rate from migration.
2690,"According to statistics, the population of Binh Duong in 1999 was about 716,000; in 2009, it was about 1,482,000; and in 2019, it was about 2,426,561."
2691,"The population growth rate in the period 1999–2009 was 7.5 percent and for 2010–2019, the growth rate was 5.1 percent."
2692,"The population is projected to reach about 3,500,000 by 2030,32 with an average population growth rate of about 3.4 percent for 2020–2030."
2693,"The province’s population is forecast to be 4,300,000 by 2040 and 4,700,000 by 2050."
2694,"The southern part of Binh Duong includes five municipalities—Thu Dau Mot, Thuan An, Di An, Tan Uyen Cities and Ben Cat Towns—with an area of 688.8 km."
2695,"While this southern part has only about 25 percent of the total area of the province, it has a population of 2.12 million, accounting for more than 82 percent of the province’s population."
2696,This area experienced rapid urbanization and industrial development in the past 15 years and currently contributes more than 90 percent of the province’s revenue.
2697,Environmental Impacts of Wastewater in Binh Duong to Water Quality of Dong Nai and Sai Gon Rivers 5.
2698,Binh Duong Province is in the Dong Nai River system basin and sits between two large rivers—the Dong Nai River and the Sai Gon River (see figure 2.1).
2699,These rivers supply more than 3 million m3 of clean water every day for HCMC and 30 The Sai Gon River is a tributary to the Dong Nai River.
2700,"31 Population Survey Report on April 01, 2019 of Binh Duong."
2701, tong-dieu-tra-dan-dan-so-va-nha-nha-o-nam-2019.
2702,32 Decision No.
2703,"1701/QD-UBND dated June 26, 2012, of the Binh Duong PPC approving the General Master Planning Project on Urban Construction to 2020, Vision to 2030."
2704,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Binh Duong and Dong Nai Provinces.
2705,"The Dong Nai River (originating from Lam Vien Plateau) flows through Binh Duong in Bac Tan Uyen District, Tan Uyen and Di An Cities; the Sai Gon River (originating from the highlands of Loc Ninh District, in Binh Phuoc Province) flows through Dau Tieng, Ben Cat, and Thuan An."
2706,The rivers converge downstream in HCMC before flowing into the sea.
2707,Figure 2.1.
2708,Dong Nai River System 6.
2709,"The formation of concentrated industrial parks in the south of Binh Duong Province has facilitated rapid economic development, but it has also elevated the risks of environmental pollution."
2710,"Among those risks, pollution to the Dong Nai and Sai Gon Rivers is considered critical, as it affects water security for a large and economically important region of the country."
2711,"Currently, the wastewater generated from industrial zones/clusters of Binh Duong is collected, treated to standard, and closely monitored by the Binh Duong DONRE."
2712,"However, only part of municipal wastewater generated from the cities/towns is collected and treated."
2713,"According to data provided by Binh Duong DONRE,33 the average total amount of municipal wastewater in Binh Duong is about 307,000 m per day (equivalent to 112 million m per year), of which the southern part of Binh Duong generates about 275,000 m per day."
2714,"In this area, there are only four WWTPs, with a total capacity of 70,000 m3 per day."
2715,"The result is that more than 70 percent of the generated municipal wastewater, with an 33 Report to the Ministry of Natural Resources and Environment in Document No."
2716,3097/UBND-KT dated 30/6/2020.
2717,"  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) average BOD5 pollution load of about 46 tons per day, remains uncollected and untreated; it is directly discharged into the urban drainage system and then flows into the Dong Nai and Sai Gon Rivers."
2718,There are several water-quality monitoring stations managed by HCMC’s DONRE at the Sai Gon and Dong Nai Rivers.
2719,"The monitoring data show that the water quality in both the Sai Gon and Dong Nai Rivers deteriorates as it moves downstream, with increases of total suspended solids (TSS), total ammonium, BOD5, and coliform, which result mostly from untreated municipal wastewater."
2720,"Although the water can still be used for water supply (with appropriate treatment), there is a trend of deteriorating water quality at critical sections of both rivers."
2721,"Recorded water quality results at nearby stations of the Sai Gon and Dong Nai Rivers during 2018–2019, and the comparison with the Government’s requirements (MONRE’s QCVN 08-MT: 2008/BTNMT—Category A1 is for water supply and Category B1 is for irrigation) is presented in tables 2.1 and 2.2."
2722,Table 2.1.
2723,Average Water Quality of the Sai Gon River Monitoring TSS Ammonium Phosphorus COD DO BOD5 Coliform Year pH Station (mg/l) (mg/l) (mg/l) (mg/l) (mg/l) (mg/l) (MPN/100 ml) BL 6.68 56 1.74 0.06 8.36 4.94 5.51 41.100 2018 SG 6.84 103 1.87 0.12 8.46 5.08 6.02 12.189 BL 6.80 47 0.20 0.03 5.96 4.71 3.14 6.541 2019 SG 6.92 66 0.72 0.07 7.22 4.22 4.23 15.122 QCVN 08-MT:2008 6.00– ≤20 ≤0.3 ≤0.1 ≤10 ≥6 ≤4 ≤2.500 /BTNMT cat A1 8.50 Note: COD = Chemical Oxygen Demand; DO = Dissolved Oxygen; MPN = Most Probable Number Table 2.2.
2724,Average Water Quality of the Dong Nai River Monitoring TSS Ammonium Phosphorus COD DO BOD5 Coliform Year pH Station (mg/l) (mg/l) (mg/l) (mg/l) (mg/l) (mg/l) (MPN/100 ml) CL 6.81 104 0.24 0.04 6.78 4.66 3.81 34.881 2018 NB 6.86 118 0.09 0.06 6.23 5.13 2.69 17.802 CL 7.01 103 0.15 0.04 5.40 4.69 2.18 18.544 2019 NB 7.13 169 0.05 0.04 7.01 5.17 2.42 5.585 QCVN 08- 6.0– ≤20 ≤0.3 ≤0.1 ≤10 ≥6 ≤4 ≤2.500 MT:2008/BTNMT cat A1 8.5 Binh Duong’s Efforts to Address Municipal Wastewater 9.
2725,"In recent years, Binh Duong Province has placed greater emphasis on addressing pollution risks caused by municipal wastewater."
2726,"At a policy level, Binh Duong established the ‘Environmental protection Plan of Binh Duong for the Period 2016–2020’, which was approved by Binh Duong PPC decision No."
2727,"3450/QD-UBND and dated December 28, 2015."
2728,"This plan calls for “prioritization of investment resources in wastewater treatment projects, continue to speed up urban wastewater collection, expand projects of wastewater treatment systems in Thu Dau Mot city, and deploy new investment in wastewater treatment systems for Thuan An, Di An cities and Tan Uyen towns.”."
2729,"To implement the approved plan effectively, Binh Duong established a Steering Committee chaired by a Vice Chair of the PPC, with representatives from all line departments, agencies, and local governments."
2730,"Starting from 2007, Binh Duong, with support from the Central Government and various development partners, has implemented investment projects for wastewater collection and treatment systems in Thu Dau Mot, Thuan An, and Di An Cities and is currently   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) expanding the system for Thu Dau Mot City and constructing wastewater collection and treatment system for Ben Cat Town."
2731,Further details of those projects are provided in table 2.3.
2732,Table 2.3.
2733,Existing and Under Construction Wastewater Collection and Treatment Systems WWTP Designed Year of No.
2734,"System Service Area Capacity (m3/day) Completion System under Operation 1 Thu Dau Mot City - phase 1 17,650 2016 Core urban part of Thu Dau Mot City 2 Thuan An City - phase 1 17,000 2019 Core urban part of Thuan An City 3 Di An City - phase 1 20,000 2019 Core urban part of Di An City Di An - Thuan An - Tan Uyen 15,000 2020 Adjacent area of Thuan An City, Di An City , and 4 Tan Uyen Town 5 Thu Dau Mot City - phase 2 17,000 2022 Extended core urban part of Thu Dau Mot City System under Construction 1 Ben Cat Town - phase 1 15,000 2027 Ben Cat Town 11."
2735,"The constructed systems have achieved their designed capacities, demonstrating the relevance and efficiency of the investments."
2736,"In the Thuan An - Phase 1 system, after three years of operation (as of June 2020), the average operating capacity is about 11,690 m per day (or at 69 percent of designed capacity), with 10,862 customers connected from a planned 19,500 connection points."
2737,"The Thuan An WWTP is forecast to operate at full capacity by 2023, so an increase of the plant’s capacity to meet the demand after 2023 is required."
2738,"In the Di An–- Phase 1 system, after one and a half years of operation (as of July 2020), the average operating capacity of the WWTP is about 9,200 m per day (or 46 percent of designed capacity), while the connection rate is about 10 percent of the design, with 5,309 customers connected from a planned 26,000 connections."
2739,"According to the current connection progress, Di An WWTP is forecasted to operate at full capacity in year 2023–2024, so an increase of the plant’s capacity to meet demand after year 2024 is required."
2740,"The O&M of the current wastewater systems (in Thu Dau Mot, Thuan An, and Di An) is performed by BIWASE based on an order from Binh Duong PPC."
2741,"BIWASE was originally a state-owned enterprise (SOE) and fully owned by Binh Duong PPC, but it has since been equitized (privatized) and became a publicly listed company in 2017."
2742,"BIWASE is paid from the provincial state budget for the service provided based on the volume of treated wastewater, which is controlled by effluent water flowmeters at each WWTP, and a unit price that is jointly developed by the Binh Duong DOC and Department of Finance (DOF) under guidance from MOC and MOF and approved by the Binh Duong PPC."
2743,This unit price only covers the O&M cost of service and a regulated level of profit; the unit price does not consider asset depreciation and investment costs.
2744,"For the last several years, BIWASE has successfully operated the wastewater systems and promoted new connections in the service areas."
2745,"However, in accordance with new regulations from the Government (Decree 32/2019), the operating agreement will be terminated, and instead, Binh Duong PPC should procure such service through an open and transparent bidding process."
2746,"Binh Duong PPC does not explicitly charge wastewater customers for the cost-of-service provision; rather, it collects an environmental protection fee for discharged wastewater from the citizens of the province."
2747,"This fee, which is 10 percent of the water bills for households with a connection to piped water supply systems or an amount based on the number of residents in households with non-piped water supply."
2748,"This fee is transferred to the province’s state budget and is used for various environmental protection-related activities, including operations of the wastewater service."
2749,"On a per-   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) m3 basis, the environmental protection fee only covers about 15 percent of the cost of wastewater collection and treatment operations, but due to the large number of people paying the fee compared to the limited number having access to the wastewater service, the cost of wastewater service has been fully covered with a cross-subsidy from the non-served population to the served population."
2750,"However, with the increase in the number of people having access to the service, the cross-subsidy will be insufficient."
2751,"Therefore, once a private operator is selected through bidding, which is currently planned for the end of 2021, Binh Duong PPC will charge a wastewater tariff to wastewater customers instead of an environmental protection fee (Decision 47/2019/QD-UBND dated December 31, 2019)."
2752,"To ensure that there is no radical change in the fee payable from wastewater customers at the transition, the wastewater tariff will be initially set at similar levels to the current environmental protection fee, that is, at 15 percent of the service cost, but will then increase thereafter, aiming to cover full O&M cost by 2030 and thereafter the gradual recovery of the investment costs."
2753,Proposed Project Project Objectives 15.
2754,The PDO is to reduce environmental pollution caused by urban wastewater in order to protect water quality and increase people’s access to improved wastewater services in the Project Areas of Binh Duong Province.
2755,Project Components 16.
2756,"Project investments focus on expanding municipal wastewater collection and treatment capacity in the southern part of Binh Duong Province,34 Thuan An City, Di An City, and Tan Uyen City."
2757,The current sewage collection and treatment systems cover only a small portion of the urban areas and there is a critical need for infrastructure expansion.
2758,"In addition, the project includes targeted activities to strengthen institutional and financial capacity to support sustainable wastewater services."
2759,"The project areas of Thuan An City, Di An City, and Tan Uyen City cover an area of more than 33,000 ha, with a total population of around 1.4 million."
2760,"The total investment is estimated at US$310.796 million, of which a loan from IBRD will finance US$230.763 million."
2761,"The lending instrument is IPF, to be implemented over a six-year period."
2762,"Selection of IPF was based on its flexibility and suitability to incorporate financing for a range of activities, including well-defined infrastructure investments, TA, and capacity enhancement measures."
2763,The project is structured into two components.
2764,A summary of activities to be financed under each component is provided below.
2765,Component 1: Wastewater infrastructure development (estimated cost: US$246.402 million; IBRD loan: US$224.002 million; counterpart fund: US$22.400 million) 19.
2766,Component 1 supports the development of climate-resilient infrastructure by incorporating climate scenarios along with adaption and mitigation measures into the planning and engineering designs.
2767,This infrastructure will expand coverage and improve treatment capacity of the municipal wastewater management system in the project areas.
2768,The component will finance goods and works to enable the required municipal wastewater infrastructure developments.
2769,"This will include civil and electrical/mechanical installations for sewerage collection, conveyance (including pumping stations and pressure lines), treatment, energy efficiency installations, and facilities for safe disposal and/or reuse of waste byproducts."
2770,"Such investments will help the province adapt to anticipated impacts from climate change by reducing surface water and groundwater contamination, as well as reduce public health risks of uncollected and untreated wastewater 34Within the south of Binh Duong Province, it is estimated that about 75 percent of municipal wastewater is being discharged untreated into the Sai Gon and Dong Nai Rivers, with an average BOD5 pollution load of about 46 tons of BOD5 per day."
2771,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) combining with floodwaters during climate change-induced flooding events.
2772,This component will enable the scale-up of wastewater treatment facilities and sewerage coverage to increase the overall percentage of municipal wastewater being collected and treated across the south Binh Duong region.
2773,"Specifically, the proposed infrastructure will increase coverage of improved wastewater services from less than 10 to 32 percent in Tan Uyen City, 19 to 45 percent in Thuan An City, and 17 to 45 percent in Di An City."
2774,"The priority expansion areas target water quality ‘hot-spots’ identified through surveys, which are predominately high-density urban areas."
2775,"The interventions will substantially reduce pollution loads to the Sai Gon and Dong Nai River systems, protecting surrounding areas and downstream communities."
2776,"Circular economy principles along with energy efficiency measures will be applied in both existing and new WWTPs, including variable-speed motors, LED lighting, operational SCADA systems, solar panels, and facilities for the reuse of treated sludge and fit-for-purpose reuse of treated wastewater."
2777,"Specific investments under Component 1 include sewage collection and network expansion, including sewage pumping stations, and wastewater treatment plants for Tan Uyen, Thuan An, and Di An Cities."
2778,The main construction items are summarized in table 2.4.
2779,Table 2.4.
2780,"Main Construction Items No Construction Item Unit Quantity I Sub-component 1.1: Tan Uyen City 1 Wastewater collection and transportation network m 311,000 2 House connections pcs 25,000 3 Pumping stations pcs 6 4 Wastewater treatment plant with initial capacity of 20,000m3/day pcs 1 5 Drainage canal for conveying treated wastewater from WWTP m 1,400 II Sub-component 1.2: Thuan An City 1 Wastewater collection and transportation network m 119,000 2 House connections pcs 10,000 3 Pumping stations pcs 1 4 Additional wastewater treatment unit with capacity of 20,000m3/day pcs 1 III Sub-component 1.3: Di An City 1 Wastewater collection and transportation network m 149,000 2 House connections Pcs 12,000 3 Pumping stations Pcs 4 4 Additional wastewater treatment unit with capacity of 20,000m3/day pcs 1 22."
2781,"The projected service areas in each city are presented in figures 2.2, 2.3 and 2.4."
2782,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Figure 2.2.
2783,Proposed Service Area for Tan Uyen City (from project FS report)   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Figure 2.3.
2784,Proposed Service Area for Thuan An City (from project FS)   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Figure 2.4.
2785,Proposed Service Area for Di An City (from project FS) 23.
2786,"Considering the availability of the existing infrastructure in Thuan An and Di An Cities and the operational experience that Binh Duong has gained from operations of the existing systems, the technology selected for new WWTPs is ASBR."
2787,"This technology is an updated version of the regular Sequencing Batch Reactor (SBR) technology, which is also widely used in Viet Nam."
2788,The ASBR helps shorten the time for each treatment cycle (batch) from 6–8 hours to 3.5–4.8 hours and therefore improves the efficiency of the treatment facility while still achieving level-A effluent water quality (Government standards QCVN14-MT:2008/BTNMT).
2789,Component 2: Institutional strengthening and implementation support (estimated cost: US$64.394 million; IBRD loan: US$6.761 million; counterpart fund: US$57.633 million) 24.
2790,Component 2 finances goods and services to enhance institutional and implementation capacity of the Binh Duong Provincial Management Board for Wastewater Projects (referred to as the WWMB) for effective project implementation and sustainability of infrastructure investments.
2791,"This component will also help advance preventative measures, including increasing awareness of handwashing and hygienic practices and support for employment generation."
2792,"Specific activities will be implemented under three subcomponents, as follows."
2793,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Subcomponent 2A: Preparation of orientation for wastewater management in Binh Duong province (counterpart fund: US$0.823 million) 25.
2794,This subcomponent includes TA for preparation of a wastewater management orientation—a strategic document—for Binh Duong Province.
2795,"This orientation will include a comprehensive review of the existing wastewater situation (including urban and rural areas), planning and growth scenarios, and wastewater management alternatives within the entire province, including infrastructure, financing, and institutional elements."
2796,"It will involve an options analysis, consultations and prioritization processes, and preparation of a road map for implementation of cost-effective medium- and long-term investments, along with operational procedures and guidelines for wastewater asset management, and an institutional capacity improvement plan."
2797,"The strategic intention is to provide clear guidance on how to effectively achieve policy objectives under a holistic, cost-effective, and sustainable approach."
2798,"The wastewater management orientation will be prepared with consideration of the construction master plans, with a view to reduce environmental impacts associated with rapid urbanization and to build resilience to increased exposure and vulnerability to climate change."
2799,"The orientation will integrate relevant sector innovations, including newer concepts of nature-based solutions, along with the principles of a circular economy."
2800,Recommendations will include measures with gender-targeted community and citizen engagement.
2801,Subcomponent 2B: Project implementation support (estimated cost: US$38.741 million; IBRD loan: US$6.761 million; counterpart fund: US$31.980 million) 27.
2802,"Subcomponent 2B includes financing for project management and implementation support activities, including PMU operating costs for technical, safeguards and fiduciary management, including grievance redress, gender and citizen’s engagement, M&E, including beneficiary satisfaction surveys and stakeholder consultations, financial audits, independent monitoring for E&S safeguards, and other day-to-day project management and implementation costs."
2803,"It also includes consultancy activities to support infrastructure developments, including surveys, detailed designs, bidding documents, construction supervision, and contract management."
2804,"In addition, the subcomponent will support IEC activities focused on (a) handwashing and hygienic practices, (b) promoting household connections to the municipal sewerage system, and (c) increasing willingness to pay for wastewater services."
2805,Some of these activities will be conducted in collaboration with municipal women’s unions.
2806,"The subcomponent will also provide trainings on gender and wastewater management for female provincial leaders, some of whom will be nominated for membership in BEPCC."
2807,"The WWMB will also be supported through TA to develop their capacity for asset management and complex procurement, including tendering processes for private sector participation."
2808,"Specifically, this subcomponent will support Binh Duong Province to develop bidding documents, including a draft contract template, to facilitate the selection of the most cost-effective and qualified service provider."
2809,Subcomponent 2C: Compensation and Site Clearance (counterpart fund: US$24.830 million) 30.
2810,"This subcomponent supports, through counterpart funding, all costs associated with resettlement, compensation, land acquisition, and site clearance required for project implementation."
2811,Project Cost Summary 31.
2812,"The total investment cost is estimated at US$310.796 million, of which US$230.763 million will be financed by the   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) IBRD loan as detailed below."
2813,Table 2.5.
2814,"Proposed Project Cost (US$, millions) COMPONENTS IBRD Counterpart Total Component 1: Wastewater Infrastructure Development 224.002 22.400 246.402 Subcomponent 1.1: Construction of wastewater collection 122.012 12.201 134.213 and treatment system for Tan Uyen City Network construction 92.185 9.219 101.404 Wastewater treatment plant construction 29.827 2.982 32.809 Subcomponent 1.2: Expansion of wastewater collection 39.518 3.952 43.470 and treatment system for Thuan An City Network expansion 27.751 2.775 30.526 Wastewater treatment plant expansion 11.767 1.177 12.944 Subcomponent 1.3: Expansion of wastewater collection 62.472 6.247 68.718 and treatment system for Di An City Network expansion 50.470 5.047 55.516 Wastewater treatment plant expansion 12.002 1.200 13.202 Component 2: Institutional Strengthening and 6.761 57.633 64.394 Implementation Support Subcomponent 2A: Preparation of orientation for — 0.823 0.823 wastewater management in Binh Duong province Subcomponent 2B: Project implementation support 6.761 31.980 38.741 PMU operating cost 1.445 1.445 Independent social safeguard monitoring 0.187 0.187 Independent environmental safeguard monitoring 0.208 0.208 Project monitoring and evaluation 0.198 0.198 Construction supervision, contract management and IEC 6.761 0.677 7.438 conduction Asset management improvement 0.601 0.601 Operation and maintenance contracting support 0.099 0.099 Project preparation activities 0.627 0.627 Technical surveys 1.383 1.383 Design and cost estimation 3.801 3.801 Bidding document preparation 0.231 0.231 Review and appraisal cost for design, cost estimation, and 1,477 1,477 bidding documents Project financial statement audits 0.208 0.208 Project audits 0.343 0.343   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) COMPONENTS IBRD Counterpart Total Front-end fee 0.462 0.462 Commitment fee 1.002 1.002 Interest during construction 14.308 14.308 Other costs (demining, project insurances, inspections, and 4.274 4.274 so on) Subcomponent 2C: Compensation and site clearance — 24.830 24.830 TOTAL 230.763 80.033 310.796   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) ANNEX 3: Economic and Financial Analysis COUNTRY: Viet Nam Binh Duong Province’s Water Environment Improvement Project Economic Analysis Approach 1."
2815,"A cost-benefit analysis was conducted to assess the net present value (NPV) and ERR of investments proposed under Component 1 and Subcomponent 2C (compensation and site clearance) of the project, which represents approximately 87 percent of the total project capital costs."
2816,Net benefits achieved with the project are driven by the number of connections and associated increase in volumes of wastewater treated.
2817,"Without the project, it is assumed that communities continue to rely primarily on septic tanks."
2818,"Future benefits and costs of the project, as established by the project team, have been analyzed to determine an NPV and an ERR."
2819,A discount rate of 6 percent is applied in a base-case analysis and a 10 percent rate is applied in a sensitivity analysis.
2820,Annual project costs and benefits are evaluated separately for each facility to account for differences in rates of capital spending and timing of facility connections.
2821,"Each project is evaluated over its own 20-year period of operations, which begins after the first connection is made to the facility."
2822,"Capital costs begin in 2020 with counterpart funds that cover costs for land compensation, project preparation works, surveys, and designs."
2823,Project costs and benefits are based on 2019/2020 prices.
2824,The evaluation has been conducted using US dollars as the unit of currency.
2825,"The exchange rate used (VND 23,270 = US$1) is close to the market rate, so no shadow foreign exchange rate is considered necessary."
2826,The analysis is conducted in real terms so forecasts of inflation are unnecessary.
2827,Project Costs 4.
2828,Project costs include capital investments (including pre-construction and construction activities) and annual O&M costs.
2829,Total costs are determined for each facility separately and combined to determine a total program cost.
2830,"In addition, residual values at each site have been estimated to account for the capacity in constructed facilities that would be underutilized by the end of a 20-year period of operations (that is, the end of the analytical period)."
2831,"The inclusion of residual values effectively reduces the initial capital cost, to account for those investments which are partly contributing to additional capacity that has not been used as a result of this project, but which is available for other investments to utilize and will likely be undertaken in the future under a phased approach."
2832,"All estimated implementation and operating costs are converted to economic costs using conversion factors (in table 3.1), which account for the resource value of an item to the country."
2833,Economic costs are converted to eliminate market factors from the financial costs.
2834,"Capital costs and O&M costs are broken down into categories such as traded materials, non-traded materials, skilled labor, unskilled labor, transfer costs (taxes, subsidies, and levies), and other categories."
2835,Financial costs have been converted from domestic currency to US dollars and are multiplied by conversion factors to arrive at economic prices.
2836,Resulting conversion factors of 0.90 for investment costs and 0.95 for O&M costs for this analysis are shown in table 3.1.
2837,Capital Costs 6.
2838,"Total capital costs include construction costs and other costs incurred during preparation and implementation of construction, including design, supervision, environmental management, and other costs."
2839,Estimated construction costs   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) are adjusted by the conversion factors to produce economic costs for this analysis (see table 3.1).
2840,The conversion factors were adapted from a recent and similar project.
2841,Table 3.1.
2842,Conversion Factors from Financial Costs to Economic Costs Capital Cost Maintenance Cost Cost Item Percentage (%) Adjustment Percentage (%) Adjustment Traded goods 30 1.00 10 1.00 Non-traded goods 20 0.93 25 0.93 Skilled labor 5 0.97 20 0.97 Unskilled labor 30 0.70 20 0.70 Energy 5 1.25 15 1.25 Taxes 10 0.00 10 0.00 Total 100 100 Conversion factor (value added tax 0.90 0.95 [VAT] excluded) Table 3.2.
2843,"Estimated Economic Capital Costs per Project (US$, millions) Year Di An Tan Uyen Thuan An All Cumulative Spending (%) 1 (2021) 0.02 0.03 0.01 0.06 0.03 2 0.09 0.18 0.06 0.34 0.20 3 0.06 0.12 0.04 0.22 0.31 4 3.05 5.97 1.93 10.95 5.91 5 9.54 18.63 6.03 34.20 23.39 6 16.92 33.05 10.70 60.67 54.41 7 13.34 26.06 8.44 47.85 78.87 8 7.91 15.46 5.01 28.38 93.37 9 3.61 7.06 2.29 12.96 100.00 Total 54.55 106.55 34.51 195.62 Operation and Maintenance Costs 7."
2844,"The annual economic O&M costs have been determined from a detailed cost analysis of activities for a range of daily treatment volumes (from 6,000 to 20,000 m3 per day)."
2845,Table 3.3 provides a sample of operational costs.
2846,"At the maximum level of operations, annual O&M costs are approximately 1.5 percent of total capital costs."
2847,Table 3.3.
2848,"O&M Cost Schedule (VND/m3), per Average Daily Volume Average Daily Volume (m3) ≤6,000 ≤12,000 ≤18,000 20,000 Cost Categories Direct material costs 2,310 2,084 2,037 2,028 Labor cost 3,013 1,879 1,503 1,348 Machine costs 724 791 512 458 General costs 1,884 1,620 1,426 1,352 Management cost 1,968 1,209 845 754 Total cost 9,899 7,583 6,323 5,940   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Average Daily Volume (m3) ≤6,000 ≤12,000 ≤18,000 20,000 Cost Categories Profit = 4.5% 445 341 285 267 O&M cost-recovery tariff 10,344 7,924 6,608 6,207 Environmental protection fee 858 858 858 858 Total service price 11,202 8,782 7,466 7,065 Economic cost of service price 10,642 8,343 7,092 6,712 Residual Value 8."
2849,Part of the capital investments in the wastewater collection system and treatment facility have remaining functional life-spans that last beyond the project evaluation period of 20 years.
2850,The part of the investment that provides a residual value relates to excess system capacity and durability that remain underutilized and functional at the end of the evaluation period.
2851,Investments in mechanical and electrical equipment do not share this characteristic and are eliminated from residual value computations.
2852,The additional life-span value becomes a cost savings in the model and is applied as a lump sum at the end of the operational period.35 9.
2853,The residual value of the wastewater collection stems from a designed capacity in the pipe system that is built for current and future treatment system capacities that would only be fully utilized in year 2050.
2854,"For each of the facilities, the remaining capacity (in percentage terms) in the piping network is multiplied by the original capital cost to determine the residual value."
2855,The remaining capacity for each subproject’s collection system is derived by dividing the estimated number of people connected by the project and the network system design at full capacity in terms of the number of people served in 2050.
2856,The residual value in remaining capacity is analytically handled as a cost savings from the original capital cost.
2857,The residual value for the wastewater treatment facility is computed similarly but with a different rationale.
2858,"In this case, it is assumed that civil works at project facilities can function for 50 years, assuming that the facilities are adequately and consistently maintained."
2859,"However, the residual value analysis excludes mechanical and electrical equipment since these systems would not last that long."
2860,"Accordingly, at the end of the 20-year project evaluation period, 30 additional years of useful life remain."
2861,"In other words, the facilities have 60 percent of their useful capacity left."
2862,The residual value would then equal 60 percent of the original facility capital costs.
2863,Residual value computations are summarized in table 3.4.
2864,"The results in table 3.4 indicate that the facilities at Di An, Tan Uyen, and Thuan An would effectively have US$37.40, US$70.15, and US$22.59 million in residual value in year 2046, respectively."
2865,These residual values can be accounted for as reduced costs in that year and are discounted to the present similar to all other costs and benefits.
2866,35 It is reasonable to consider a residual value as a cost savings since it arises as an artifact of an analytical period that is shorter than its useful life.
2867,The shorter analytical period means that less of the original capital cost has been utilized to generate benefits from the project.
2868,Benefits of a project are best defined as the principal reason for implementing a project and a residual value is not a reason to build a project.
2869,"That said, a residual value surely is a benefit to the project and would be included in the numerator of a benefit-cost ratio, as well as a normal reduction in discounted costs in a calculation of NPV and IRR."
2870,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Table 3.4.
2871,"Data and Assumptions to Compute Residual Values of Capital Costs (US$, millions) Di An Tan Uyen Thuan An Collection system - less M&E costs Collection system cost (with contingency) 50.37 91.78 27.81 % capacity remaining 71 68 73 Residual value 35.54 62.13 20.30 Treatment facility - less M&E costs Treatment facility (with contingency) 3.10 13.37 3.82 % Life-span remaining 60 60 60 Residual value 1.86 8.02 2.29 Total residual value 37.40 70.15 22.59 Present Value Costs 12."
2872,A discount rate of 6 percent has been chosen to evaluate the economic returns of the project.
2873,"This rate—which is lower than the previously common discount rate of 10 percent—is based on research related to social discount rates,36 the long-term nature of the project, in which benefits arise and continue in the long run (which would be too heavily discounted using traditional discount rates), and the very low cost of capital in Viet Nam, in which 25-year Vietnamese government bonds currently yield 3.2 percent annually."
2874,"Combining initial capital, annual O&M costs, and the residual value cost adjustment, the present value costs at a 6 percent discount rate is about US$176.77 million for the entire project."
2875,"The project in Tan Uyen represents a large portion of the total project present value cost, at US$77.33 million at a 6 percent discount rate."
2876,Table 3.5.
2877,"Present Value of Di An Tan Uyen Thuan An Total Costs (US$, millions) Present value of costs 56.45 77.33 42.99 176.76 Project Participation 13."
2878,"Forecasts of connections, number of individual beneficiaries, and associated wastewater volumes are presented in table 3.6."
2879,"The method used to determine project participation involves estimating the numbers of individual participants from the total volume treated, not the number of connections."
2880,"Connected households can be assumed to generate the same volumes, if they have the same number of people per household."
2881,"However, household sizes vary substantially in Binh Duong Province due to migrant worker residential characteristics, and connections to non-household facilities (for example, businesses, schools, or other government institutions) would certainly differ in wastewater volume generation rates, since their occupants would likely be much larger."
2882,"Accordingly, the approach first determines total combined wastewater volumes from all types of connections and then estimates equivalent number of people who would have generated this volume."
2883,"In addition to the new connections in the project areas, the two subprojects at Di An and Thuan An include network construction in existing areas that enables connections to existing facilities that have not reached capacity."
2884,"In addition, treatment capacity expansions under the project would also treat wastewater from new connections in areas with existing networks."
2885,"The number of individual people (that is, beneficiaries) connected to the project facilities, 36 World Bank."
2886,Technical Note on Discounting Cost and Benefits in Economic Analysis of World Bank Projects.
2887,"  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) independent of how or where they are connected, are estimated for this analysis by dividing each year’s total wastewater volume by the average volume of wastewater generated per person."
2888,The average per capita volume of wastewater generated is a standard planning measure in Viet Nam and equals about 0.13 m3 per day.
2889,"The rationale behind focusing on estimated wastewater treatment volumes as the key measure for estimating impact, and ultimately, the value of treatment, stems principally from recognizing that significant benefits of treatment are the improved environmental and health conditions in the wider region downstream in the watershed."
2890,"Moreover, once the project is completed, the clearest measure of project performance and a comparison of ‘with-project’ and ‘without- project’ conditions can be obtained from the actual difference in wastewater treatment volumes, since in the ‘without - project’ case, no treatment would have occurred."
2891,This approach avoids the variability in wastewater generation among individual households and non-households and focuses instead on the total impact on regional health and environmental improvement.
2892,Table 3.6.
2893,"Forecast of Program Participation over Time (Connections, Beneficiaries, and Additional Volumes Treated) Di An Tan Uyen Thuan An Cumulative Total # of Beneficiaries # of Beneficiaries # of Beneficiaries # of Beneficiaries Volumes Treated Volumes Treated Volumes Treated Volumes Treated # of Connections # of Connections # of Connections # of Connections (m3/day) (m3/day) (m3/day) (m3/day) Year 2024 2,200 15,092 1,962 0 0 0 2,000 12,060 1,688 4,200 27,152 3,650 2025 3,000 20,580 2,675 0 0 0 2,200 13,266 1,857 9,400 60,998 8,183 2026 2,900 19,894 2,586 0 0 0 2,500 15,075 2,111 14,800 95,967 12,880 2027 4,000 27,440 3,567 6,000 42,780 5,561 4,000 24,120 3,377 28,800 190,307 25,385 2028 4,000 27,440 3,567 4,000 28,520 3,708 4,000 24,120 3,377 40,800 270,387 36,037 2029 1,000 6,860 892 4,000 28,520 3,708 3,000 18,090 2,533 48,800 323,857 43,169 Total 31,100 213,300 27,160 21,600 153,900 20,000 30,149 181,900 25,309 Project Benefits 16."
2894,The economic value per capita can be derived from several separate and additive benefit categories.
2895,"First, consider the out-of-pocket household costs for wastewater treatment service."
2896,"Without the project, households currently pay an environmental fee associated with the environmental impact of septic tank use that is equal to 10 percent of the cost of their water consumption."
2897,"After a connection to the project, households are expected to pay a tariff for wastewater service that is larger than the existing environmental fee."
2898,"As a result, participating households would pay an increased out-of- pocket cost for wastewater treatment service that equals the difference between the existing environmental fee and the wastewater tariff."
2899,The annual average per capita cost increase is estimated by the project team to be US$1.12.
2900,"Other economic values per capita in table 3.8 are derived from results of an analysis by the World Bank/Water and Sanitation Program (WSP) (2012) on the value of wastewater improvements across Viet Nam and elsewhere in Southeast Asia.37 Health benefits computed in the WSP report include lower health care costs, improved productivity, and reduced mortality risk (the largest impact, in monetary terms)."
2901,These elements capture the public health-related values of the project that accrue to a wider community of people—not just those who establish a connection to the wastewater 37 World Bank/WSP.
2902,Economic Assessment of Sanitation Interventions in Viet Nam.
2903,May 2012   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) treatment facility.
2904,"To compute these benefits on a per capita basis, households in the project area are assumed to be using septic systems."
2905,"The WSP report does not provide an estimate for the annual health value per household for a conversion from septic to centralized treatment (that is, ‘sewerage’)."
2906,"Instead, this value is derived from WSP results as the difference in value involved in converting from open defecation to septic and from open defecation to sewerage."
2907,"The difference in these two separate conversion values is assumed to reasonably represent the value of converting from septic to sewerage and equals VND 758,000, in 2008 terms (as shown in the list below)."
2908,This value applies to only those households connected to the project but could be a value that is realized by others downstream of the facility.
2909,Table 3.7.
2910,"Breakdown of Health Benefits from WSP 2012 Report Annual Value (VND, thousands per household, 2008) Estimated Treatment Treatment Improvement Treatment Improvement Health Benefits: Improvement (OD to Septic) (OD to Sewerage) (Septic to Sewerage) Health Care 159 208 49 Productivity 54 70 16 Mortality 2,235 2,928 693 Subtotal 2,448 3,206 758 18."
2911,"In addition to health benefits, it is expected that property owners would also save on maintenance and regular replacement costs for their existing septic systems after they connect to the centralized wastewater system."
2912,"The WSP report computes this savings in annualized ownership costs to be VND 766,000 per household, in 2008 terms."
2913,"This level of cost savings is also applied to non-household connections since it is assumed that whatever wastewater management system exists for those connections, a proportionate level of maintenance costs could be saved from a connection to the treatment plant."
2914,"In table 3.8, all elements of value in health and cost savings from improving treatment are converted into 2019 terms."
2915,The total value of centralized treatment amounts to VND 3.42 million per household per year.
2916,"After adjusting for inflation, exchange rates and the number of persons per household in the study area, the total annual per capita economic value of participating in the project is determined to be US$40.47."
2917,"Also, consistent with other economic analyses on water and wastewater in Viet Nam, a real growth rate equal to 2.0 percent is assumed to apply to benefits of improved water quality over time to account for the widespread rise in incomes and populations."
2918,Note that other benefit categories are computed in the WSP report but are excluded in this analysis to represent a conservative value of improved sanitation.
2919,Table 3.8.
2920,"Benefit Categories and Average Annual Value of Wastewater Service Improvements Annual Value Annual Value (VND, thousands per (US$ per person, 2019) household, 2019) Net environmental fee payments −261 −1.12 Health benefits: health care, productivity, mortality 1,829 20.69 Water benefits: annual septic tank ownership costs 1,849 20.91 Total net benefit per capita 3,417 40.47   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Cost-Benefit Analysis Results of Wastewater Benefits (only) 21."
2921,"Table 3.9 summarizes the results of the economic analysis for each facility and the overall total with costs, benefits, NPV at a 6 percent discount rate, along with the ERR."
2922,The total project ERR of 11.68 percent indicates that the investments altogether are economically worthwhile.
2923,"Two of the subprojects, Di An and Thuan An, comfortably achieve rates of return above 10 percent."
2924,"The third project in Tan Uyen achieves lower returns because, as a new facility, its initial capital costs are significantly higher and a slower growth in the number of connections is anticipated."
2925,"However, the higher up-front costs and lower economic returns at Tan Uyen do not fully account for the long-term transition to and higher benefits from a more modern wastewater treatment system."
2926,"As testament to this observation, it is reasonable to expect that future facility expansions at Tan Uyen, just like in Di An and Thuan An, would be likely to achieve higher rates of return in the future."
2927,"Moreover, considering that this type of infrastructure generates significant benefits (that is, health) for people who are not making the actual investment, the positive rate of return provides a strong justification for the investment."
2928,Several potentially significant additional sources of benefits have not been captured in this analysis.
2929,"For example, the WWTP will reduce BOD5 concentrations in waters discharged into the Sai Gon and Dong Nai Rivers."
2930,"According to a recent study by the World Bank38 on water quality, increasing BOD5 concentrations are associated with declining GDP."
2931,The project’s wastewater treatment investments will contribute to improved water quality over the short and long run.
2932,"Since the project area is upstream from HCMC, and roughly 40 percent of that city’s water comes from the Dong Nai River, the scale of potential avoided economic costs from improved wastewater treatment are certainly magnified."
2933,"In addition, reduced wastewater pollution in the rivers is likely to result in benefits to aquatic biodiversity in previously affected areas, as well as improved amenity, recreation, and tourism opportunities."
2934,Table 3.9.
2935,"Total Net Benefits by Component Total Present Value Total Present Value Cost Total NPV Project Sites Benefits (US$, millions), ERR (%) (US$, millions), 6% (US$, millions), 6% 6% Di An 56.44 104.39 47.94 18.91 Tan Uyen 77.32 66.73 −10.60 4.84 Thuan An 42.98 93.32 50.34 33.16 Total 176.75 264.43 87.69 11.68 Cost-Benefit Analysis Results of Wastewater and GHG Reduction Benefits 23."
2936,Changes in GHG emissions resulting from the project have been estimated and incorporated into the base-case economic analysis.
2937,"The wastewater collection and treatment activities under Component 1 have estimated net emissions savings of 1,089,066 tCO2eq over the economic lifetime of the project."
2938,"These reductions are allocated proportionally between the investments in Tan Uyen, Thuan An, and Di An."
2939,"These reductions are valued using a high and low shadow price per tCO2eq, according to World Bank guidelines."
2940,Incorporating the net reductions in GHG emissions into the economic analysis results in higher NPVs and ERRs for each facility.
2941,The results below represent an increase in benefits discussed in table 3.9.
2942,"As shown in table 3.10, all net benefits for all subprojects increase substantially when incorporating the value of GHG reductions."
2943,A sensitivity analysis is conducted to value CO2eq emissions reductions using high and low shadow prices.
2944,"With a high shadow price of US$80 per tCO2eq, the total project achieves an ERR of 11.70 percent, which is an increase over the 11.68 percent ERR based on only wastewater treatment benefits."
2945,A low shadow price of US$40 per tCO2eq results in a smaller increase in the project-level 38 World Bank.
2946,May 2019.
2947,Quality: Unknown.
2948,The Invisible Water Crisis.
2949,Water Global Practice.
2950,"  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) ERR, at 11.69 percent."
2951,"At a 6 percent discount rate, the combined value of GHG emissions reductions, at an average price, plus the net benefits of wastewater treatment amounts to a NPV of US$87.87 million."
2952,Table 3.10.
2953,"Total Net Benefits with GHG Reduction Benefits, by Component Total Net Benefits without GHG Total Net Benefits with High Shadow Total Net Benefits with Low Shadow Benefits Price of GHG Price of GHG Total NPV Project Total NPV (US$, Total NPV (US$, (US$, ERR (%) ERR (%) ERR Sites millions), 6% millions), 6% millions), 6% Di An 47.94 18.90 48.07 19.00 48.01 18.90 Tan Uyen −10.60 4.80 −10.48 4.90 −10.54 4.80 Thuan An 50.34 33.20 50.47 33.30 50.40 33.20 Total 87.69 11.68 88.06 11.70 87.87 11.69 Sensitivity Analysis on Wastewater Treatment (only) Benefits Demand Forecast 25."
2954,The project’s benefits are directly dependent on the number of connections.
2955,A sensitivity analysis has been conducted to assess how the project value changes with the rate of increasing connections.
2956,Several alternative rates of increasing connections are explored.
2957,"In each alternative scenario, it is simply assumed that an equal number of connections is established each year until the capacity is reached."
2958,The difference between the scenarios is the number of years until capacity is reached.
2959,"Results indicate that even with a five-year delay, the project ERR at 8.8 percent is still above the 6 percent discount rate threshold, even without accounting for GHG reduction benefits."
2960,Table 3.11.
2961,"Sensitivity Analysis Results 2 Year Delay 3 Year Delay 5 Year Delay NPV (US$, millions) 74.53 71.10 64.19 EIRR (%) 9.6 9.3 8.8 Financial Analysis 26."
2962,"The project financial analysis focuses on projecting the financial performance of the three wastewater operational units, considering assumed project-related connections and likely wastewater tariffs, in the context of the proposed increases in tariffs to meet the target of tariffs covering O&M costs by 2030."
2963,"The financial projections provide a sense of the operating losses that the units are likely to incur before tariffs reaching O&M cost-recovery levels, and therefore, the subsidies that the provincial government will need to provide."
2964,"According to the current provincial regulations, households connected to the centralized sewerage system are expected to pay wastewater tariffs set at 15 percent of the O&M costs."
2965,A draft tariff road map prepared during project preparation envisions increasing tariffs such that they will cover (a) 100 percent of O&M expenses by 2030 and (b) O&M expenses plus depreciation (full cost recovery) gradually thereafter.
2966,"The time horizon for transition to full cost recovery is yet to be determined by the province (for example, by 2035 or by 2040)."
2967,Appropriate longer-term tariff adjustment   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) schedules to support a transition to sector financial sustainability and to increase private capital mobilization will be developed during the early stages of the project as part of the wastewater management strategy under Component 2.
2968,Financial projections have been made for the three wastewater operating units based on utilization rates provided in the feasibility studies.
2969,"The investment feasibility studies have estimated that the O&M cost is VND 6,207 per m3 (US$0.27 per m3) at full utilization of the treatment capacity, while the full cost-recovery tariff, defined as all direct operating, maintenance, and administrative costs plus depreciation costs for all three systems is VND 20,642 per m3 (US$0.89 per m3)."
2970,"For simplicity and to minimize errors or confusion that may arise when using projected inflation rates, the tariffs used in the financial projections are at current (2020) price levels and do not incorporate inflation expectations or other potential increases in input costs."
2971,"Assumptions regarding the effective number of individuals39 connected to the new (Tan Uyen) and expanded (Di An and Thuan An) sewerage systems, wastewater discharge rates, capacity, and so on, for each of the systems are provided in table 3.12."
2972,Table 3.12.
2973,"Assumptions for Financial Analysis Di An Thuan An Tan Uyen Existing sewage treatment capacity 20,000 m3/day 17,000 m3/day 0 Planned additional treatment 20,000 m3/day 20,000 m3/day 20,000 m3/day capacity Service population (est."
2974,"2023) 510,100 474,000 347,800 Population growth rate 3% annually Estimated effective population 80,000 90,000 0 receiving service in 2021a Estimated annual new individuals served due to network and treatment-plant expansion 2023 (Project Year 0) 0 0 2024 (Year 1) 0 0 0 2025 (Year 2) 14,800 12,600 0 2026 (Year 3) 17,100 15,500 0 2027 (Year 4) 23,500 17,200 0 2028 (Year 5) 29,500 20,200 15,500 2029 (Year 6) 28,000 28,200 30,600 2029 (residual infill)b 27,000 16,800 29,500 2030 (residual infill) 24,000 18,000 28,600 2031 (residual infill) 21,600 19,800 23,900 2032 (residual infill) 27,800 27,300 19,000 2033 (residual infill) 6,300 6,800 Estimated effective individuals receiving service due to the project 213,300 181,900 153,900 (during and following project) Service coverage projection, 2032 45% 43% 31% 39 The assumptions for the financial analysis are the same as those for the economic analysis."
2975,"  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Di An Thuan An Tan Uyen Average water consumption 130 l/p/d Average wastewater discharge 130 l/p/d (100% of piped water consumption) Average daily treatment, 2032 40,000 m3/day 37,000 m3/day 20,000 m3/day 3 O&M expense at full operations 6,207 VND/m Note: a."
2976,"Calculated using the number of household connections and an assumption of approximately 6 persons per household to calculate the number of individuals directly connected to the system, plus an additional 30 percent of individuals indirectly connected to the system (for example, through commercial and industrial connections)."
2977,"Residual infill refers to sewerage connections to project-financed network, made after project completion, paid for by the households or connecting businesses."
2978,O&M costs for wastewater treatment system in Binh Duong Province paid by the province’s budget from 2016 to 2023 to the operators is as shown in table 3.13.
2979,Table 3.13.
2980,"Binh Duong Province Wastewater Service Unit Price, 2016–2023 Treatment Capacity (m3/day) Wastewater Tariffs, 2016–2023 (VND/m3) Under 8,000 5,261 From 8,000 to under 10,000 5,558 From 10,000 to under 12,000 5,021 From 12,000 to under 14,000 4,810 From 14,000 to under 16,000 4,525 From 16,000 4,313 31."
2981,"Domestic wastewater treatment service tariff in Binh Duong approved by the decision 47/2019/QD-UBND of Binh Duong PPC dated December 31, 2019, with the tariff at the level of 15 percent wastewater treatment price."
2982,But information reviewed up to 2023 indicate that this tariff has yet to be applied.
2983,Residents of Binh Duong do not pay for this service and the full costs are borne by the province.
2984,"With the objective of reaching tariffs that cover O&M costs by 2031, the following tariff road map was prepared as part of the feasibility studies."
2985,"As tariffs are currently very low, only meeting 15 percent of estimated O&M costs, the road map envisions relatively high percentage increases in the early years, with smaller percentage increases in the later years."
2986,Table 3.14.
2987,"Binh Duong Province Wastewater Tariffs, 2025–2031 (VND/m3) 2025 2026 2027 2028 2029 2030 2031 Tariff 3,414 4,035 4,655 5,276 5,587 5,897 6,207 % Increase 22 18 15 13 6 6 5 *Note: The amounts and the rate of increase do not consider potential inflation, which would need to be included as well."
2988,"For the new and expanded systems supported under the project, the provincial government would need to cover the shortfall in O&M cost coverage until tariffs cover those costs."
2989,"In addition, it is important to note that the projected O&M tariff (VND 6,207 per m3) assumes that operations are at full capacity; at lower capacities, O&M expenses on a per m3 basis are higher."
2990,"Therefore, in practice, revenues from tariffs are likely to remain below total O&M costs even after 2030 if operations are not at full capacity."
2991,"The assumption for these projections is that a significant number of connections will be made before commissioning of the new and/or expanded treatment facilities, and that the systems will be operating at or close to capacity shortly after commissioning."
2992,"If household connections are slower than expected, the difference between actual per cubic meter costs and costs at full operations will be larger."
2993,"  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Financial Projections, Operating Gaps, and Government Subsidies, 2025–2031 33."
2994,"The following tables summarize key operational information for each of the three systems, as well as estimated costs (given projected operations) and revenues (based on the tariff road map)."
2995,"Until tariffs reach a level that cover the direct O&M expenses of the operating units, the provincial government will need to provide operating subsidies."
2996,Table 3.15.
2997,"Di An Operational and Financial Projections, 2025–2031 2025 2026 2027 2028 2029 2030 2031 Population served 131,000 160,500 188,500 215,500 239,500 261,100 288,900 Average daily sewage collection and 17,000 m3 20,900 m3 24,500 m3 28,000 m3 31,150 m3 33,950 m3 37,550 m3 treatment O&M expenses per 6,608 8,921 7,924 7,270 7,270 7,002 6,608 m3 (VND) Wastewater tariff 3,414 4,035 4,655 5,276 5,587 5,897 6,207 (VND/m3) O&M expenses, annually (VND, 41,072 67,941 70,877 74,340 82,619 86,743 90,578 millions) Revenues (VND, 21,221 30,728 41,640 53,952 63,487 73,058 85,092 millions) Net income (Loss) (19,851) (37,214) (29,237) (20,388) (19,132) (13,685) (5,487) (VND, millions) Table 3.16."
2998,"Thuan An Operational and Financial Projections, 2025–2031 2025 2026 2027 2028 2029 2030 2031 Population served 135,000 155,200 183,400 200,200 218,200 238,000 265,300 Average daily sewage collection and 17,550 m3 20,200 m3 23,800 m3 26,000 m3 28,400 m3 30,900 m3 34,500 m3 treatment O&M expenses per 6,608 8,921 8,921 7,924 7,270 7,002 6,608 m3 (VND) Wastewater tariff 3,414 4,035 4,655 5,276 5,587 5,897 6,207 (VND/m3) O&M expenses, annually (VND, 42,326 65,698 77,635 75,276 75,271 79,069 83,179 millions) Revenues (VND, 21,869 29,713 40,513 50,121 57,841 66,595 28,141 millions) Net income (Loss) (20,457) (35,985) (37,121) (25,155) (17,430) (12,474) (5,038) (VND, millions) Table 3.17."
2999,"Tan Uyen Operational and Financial Projections, 2026–2031 2026 2027 2028 2029 2030 2031 Population served 15,500 46,100 75,600 104,200 128,100 147,100   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Average daily sewage 2,000 m3 6,000 m3 9,800 m3 13,500 m3 16,600 m3 19,100 m3 collection and treatment O&M expenses per m3 (VND) 10,344 10,344 8,924 7,924 7,270 6,207 Wastewater Tariff (VND/m3) 4,035 4,655 5,276 5,587 5,897 6,207 O&M expenses, annually 7,608 22,628 32,002 39,180 44,190 43,326 (VND, millions) Revenues (VND, millions) 2,967 10,184 18,927 27,622 35,844 43,326 Net Income (Loss) (VND, (4,641) (12,444) (13,075) (11,558) (8,346) 0 millions) 34."
3000,The summary of operating losses during the initial years of operation and the total amount of operating subsidies estimated to be required of the provincial government is provided in table 3.18.
3001,"Table 3.18: Net Operating Losses and Government Subsidy Required, 2025–2031, VND millions 2025 2026 2027 2028 2029 2030 2031 Di An 19,851 37,214 29,237 20,388 19,132 13,685 5,487 Thuan An 20,457 35,985 37,121 25,155 17,430 12,474 5,038 Tan Uyen 4,641 12,444 13,075 11,558 8,346 0 Combined Government 40,308 77,839 78,803 58,618 48,120 34,505 10,525 Subsidy Required (approximately US$, 1.74 3.36 3.40 2.53 2.08 1.49 0.45 millions) 35."
3002,Sensitivity analysis.
3003,Sensitivity analyses have been performed to estimate the impact of slower-than-expected uptake in sewerage connections and an increase in operating costs.
3004,"Two scenarios have been analyzed: (a) a three-year delay in the amount of time required until capacity is reached (for Tan Uyen, a two-year delay in both connections and treatment capacity) and (b) a 10 percent increase in operating costs."
3005,The results of the analyses are provided in tables 3.19 and 3.20.
3006,Table 3.19.
3007,"Sensitivity Scenario 1: Three-year Delay to Reach Capacity (Net Operating Losses and Government Subsidy Required, 2025 – 2031, VND millions) 2025 2026 2027 2028 2029 2030 2031 Di An 34,232 29,621 23,386 13,613 26,566 37,468 23,536 Thuan An 24,701 21,848 16,987 34,625 34,525 34,153 21,614 Tan Uyen — — — 3,728 10,408 10,849 8,489 Combined Government 58,933 51,469 40,373 51,966 71,499 82,469 53,639 Subsidy Required (Approximately US$, 2.54 2.22 1.74 2.24 3.08 3.56 2.31 millions) Table 3.20."
3008,"Sensitivity Scenario 2: 10% Increase in Operational Costs per m3 (Net Operating Losses and Government Subsidy Required, 2025–2031, VND millions) 2025 2026 2027 2028 2029 2030 2031 Di An 23,958 44,008 36,325 27,822 27,394 22,359 14,544   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Thuan An 24,690 42,555 44,885 32,683 24,957 20,381 13,356 Tan Uyen 5,401 14,707 16,275 15,473 12,765 4,333 Combined Government 48,648 91,964 95,917 76,780 67,827 55,505 32,233 Subsidy Required (Approximately US$, 2.10 3.97 4.14 3.31 2.93 2.40 1.39 millions) Table 3.21."
3009,"Summary Change in Operating Losses and Government Subsidy (Total Subsidy and Percentage Change from Base Case) Total Subsidy % Change (VND, millions) Base Case 348,718 n.a."
3010,"Scenario 1: Three-year delay to reach capacity 410,348 + 18 Scenario 2: 10% increase in operating costs 468,873 + 34 36."
3011,"As indicated above, both sensitivity scenarios indicate a noticeable impact on the likely subsidies required from the provincial government compared with the base-case assumptions."
3012,"In the case of delays in network expansion, and therefore, capacity usage, this is due to the costs of operating the expanded treatment plants at Di An and Thuan An at capacities that result in high per m3 costs."
3013,"(In addition, operating subsidies would likely need to be paid by the Government for several years after 2030, which are not included in this analysis."
3014,"In the case of increased operating costs, it is due to the assumption that it would not be possible to raise tariffs as quickly as necessary to meet the higher operating costs."
3015,"The operating losses are greater for every year in operation, through 2031, as the customer tariff (according to the tariff road map) reaches the increased O&M cost only in 2032."
3016,Fiscal Analysis 37.
3017,A fiscal analysis has been conducted to analyze Binh Duong Province’s ability to borrow the proposed loan from the World Bank within the legal limits established under Vietnamese law.
3018,"According to Article 7 of the 2015 Budget Law,40 Binh Duong Province may not have an outstanding debt balance higher than 30 percent of its revenues (after required transfers to the Central Government)."
3019,"In addition, Decree 97/2018/ND-CP specifies that Binh Duong Province (among others) is responsible for repayment of 70 percent of loans made to the Central Government for investments within the province."
3020,"The proposed project is expected to be financed with a World Bank loan of US$230.76 million, of which Binh Duong will be responsible for US$161.53 million."
3021,Project cost and financing plan.
3022,"The estimated cost of the project is US$310.79 million, of which US$230.76 million will be financed by the proposed World Bank loan, and US$80.03 million will be financed by counterpart fund contributions by the PPC."
3023,Table 3.22 provides an overview of the preliminary project financing plan.
3024,Table 3.22.
3025,"Preliminary Project Cost and Financing Plan (US$, millions) World Bank Loan Borrower Total On-lending On-granting Subtotal 161.53 69.23 230.76 80.03 310.79 Note: According to Decree 97/2018/NĐ-CP and Decision 1164/QD-BTC."
3026,40 Decree 97/2018 / ND-CP and decision 1107/QD-BTC.
3027,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) 39.
3028,Assessment of the current debt balance of Binh Duong Province.
3029,"Binh Duong Province has been engaged in significant technical infrastructure development in recent years, with simultaneous investments in transport, industrial park infrastructure, and water supply and drainage."
3030,"Infrastructure investments have largely been financed through foreign direct investment, ODA funds on-granted from the budget, and the provincial budget."
3031,Table 3.23.
3032,"Data on Debt balance of Binh Duong Province’s in the Years 2021, 2022 (VND, millions)41 Payments 2022 Project Name End of 2021 End of the Year 2022 Principal Interest/Fees Total Binh Duong Province’s Water 234,386 6,347 1,805 8,152 228,039 Environment Improvement Project - Phase II Drainage and wastewater 1,435,906 78,358 34,083 112,441 1,357,548 treatment systems in Di An Town Total 1,670,292 84,705 35,888 120,593 1,585,587 40."
3033,"Table 3.24, projects Binh Duong Province’s debt capacity, based on a low-growth scenario, as well as its debt balance, based on its already existing liabilities."
3034,Table 3.24.
3035,"Binh Duong Province’s Projected Debt Capacity (VND, billions) 2023 2024 2025 2026 2027 2028 Revenue, post transfers to the Central Government, low- 27,943 30,178 29,899 31,992 34,231 36,628 growth scenario Debt balance ceiling with low-growth scenario 8,383 9,054 8,970 9,598 10,269 10,988 Debt balance forecast, excluding the proposed project 2,733 3,085 3,085 3,434 3,265 3,093 Ratio of outstanding debt to the public debt ceiling (%) 33 34 34 36 32 28 41."
3036,"These figures indicate that Binh Duong’s total outstanding debt—projected to be VND 2,733 billion in 2023—is estimated to be 33 percent of its 2023 debt ceiling of VND 8,383 billion."
3037,"Given its existing liabilities, the province is projected to reach its highest ratio of debt to debt ceiling in 2026, when the ratio is expected to reach 36 percent."
3038,"Table 3.25 incorporates the province’s liabilities expected as a result of the project, including both (a) expected operating subsidies (which make up a very small portion) and (b) the debt due to the project."
3039,"Those amounts, combined with existing debt for 2023–2027, indicate that the ratio of debt to the debt ceiling is expected to increase from 39 percent in 2023 to 63 percent in 2027."
3040,The ratio of debt to the debt ceiling will decline after 2027.
3041,These debt projections remain within the legal limits throughout the implementation period of the project as well as after.
3042,Table 3.25.
3043,"Analysis of Binh Duong Province Borrowing Capacity (VND, billions) Indicator 2023 2024 2025 2026 2027 Provincial revenues, post transfers to central 27,943 29,899 31,992 34,231 36,628 government 41 Source: Decision No."
3044,"379/STC-QLN dated February 4, 2023, of DoF Binh Duong."
3045,"  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) Indicator 2023 2024 2025 2026 2027 Less expected project-related operational 43 72 69 54 subsidies Revenues, net of operational subsidies 27,943 29,856 31,920 34,162 36,574 Debt ceiling 8,383 8,970 9,598 10,269 10,988 Debt balance forecast, without project 2,733 3,085 3,434 3,265 3,093 Project-related debt balance 574 1,148 1,913 3,060 3,825 Total annual debt balance, with project 3,307 4,233 5,347 6,325 6,918 Ratio of outstanding debt to debt balance 39 47 56 62 63 ceiling (%) 43."
3046,"The analysis indicates that Binh Duong Province has both fiscal space to borrow from the World Bank for the project and to manage its overall debt within the allowed limits, as well as to provide necessary subsidies during the initial operating periods."
3047,Affordability Assessment 44.
3048,"A Poverty and Social Impact Analysis (PSIA) reviewed household incomes and expenditures from the 2018 Viet Nam Household Living Standard Survey (VHLSS), analyzing them in conjunction with the estimated O&M tariffs for wastewater service, as well as, in the longer term, with potential full cost-recovery tariffs."
3049,"The analysis indicates that at tariffs that cover O&M costs, wastewater treatment would remain highly affordable, demanding a relatively small proportion of household income even for the poorest quintile of households."
3050,"Both household incomes and potential tariffs were reviewed using 2020 prices and, therefore, with one exception42 described below, are applicable regardless of the year in which analysis is applied."
3051,"As outlined above, the provincial government’s policy calls for bringing wastewater tariffs in line with O&M costs in the medium term, with tariffs gradually increasing over time to full cost-recovery levels."
3052,Average household wastewater discharge is expected to be 10 m3 per month; this amount varies very little across income quintiles.
3053,"At the O&M cost coverage rate of VND 6,207 per m3, monthly charges related to wastewater would be about VND 62,100 (US$2.66) or 0.3 percent of average household income."
3054,"At the lowest household income quintile, wastewater service at expected O&M cost coverage levels are estimated to be approximately 0.7 percent of household income, while the next three income quintiles would likely pay between 0.3 and 0.4 percent of household income."
3055,"The projected O&M cost-recovery tariff would remain, therefore, highly affordable for the average household."
3056,"The full cost-recovery tariff (VND 20,642 per m3 or US$0.89 per m3) is estimated to cost approximately 2.5 percent of monthly income for the lowest quintile and between 1.0 percent and 1.4 percent for the next three income quintiles."
3057,"Figure 3.1 provides an overview of the percentage of household income that the projected, combined, monthly water and wastewater fees would require."
3058,"Since households of all income quintiles pay between 0.3 and 0.4 percent of their income for water services, both the O&M tariff and the full cost-recovery tariff fall within benchmarks for water and wastewater service affordability for households of all income quintiles."
3059,"It is important to note, however, that in the long term, income forecasts for the lowest-income households are not expected to increase in line with other costs."
3060,"If general costs increase at a higher rate than expected, while household incomes do not increase at the same rate, the ability of the 42This refers to the exception that the lowest incomes will not increase in line with inflation, and that the share of income required for sewerage (and water) services will increase slightly over time."
3061,"In contrast, household incomes at all other quintiles are expected to rise in line with inflation."
3062,  The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) lowest-income households to afford sewerage service may be affected.
3063,"In that case, a targeted Government subsidy scheme to support the poor could be considered."
3064,Figure 3.1.
3065,Tariff Affordability Results: Expenditures as Percentage of Household Income per Quintile 6 Water and wastewater expenditure as percentage of household income (%) Affordability threshold 5.0 % 5 4 3 2 1 0 Existing O&M Full Existing O&M Full Existing O&M Full Existing O&M Full Existing O&M Full price recovery recovery price recovery recovery price recovery recovery price recovery recovery price recovery recovery price price price price price price price price price price Bottom Quintile Second Quintile Third Quintile Fourth Quintile Richest Quintile 2020 Water Waste water Benchmark   The World Bank Binh Duong Province’s Water Environment Improvement Project (P173716) ANNEX 4: Project Map COUNTRY: Viet Nam Binh Duong Province’s Water Environment Improvement Project  
3066,STRATEGIC CONTEXT A.
3067,Country Context Brazil Context 1.
3068,"Brazil’s economy continues to recover, with gross domestic product (GDP) growing at 2.9 percent in 2022, propelled by a successful COVID-19 vaccination campaign, rising demand for services, and fiscal stimulus."
3069,"The labor market improved through 2022, including for women and youth, as unemployment fell to 7.9 percent by December 2022 (down from a peak of 11.1 percent in December 2021)."
3070,Persistent inflation (5.6 percent as of February 2023) has prompted the tightening of monetary policy rate (13.75 percent as of February 2023) to anchor 2023-24 inflation expectations.
3071,"Improved revenues, gradual economic recovery and elevated prices of commodities boosted fiscal results in 2022, with the 12-month primary surplus of the public sector reaching 1.2 percent of GDP and public debt declining to 72.9 percent of GDP as of January 2023 (a 5.4 p.p reduction)."
3072,"GDP growth is expected to slow to 0.8 percent in 2023 due to the lagged effects of domestic monetary tightening, persistent inflation, and the deceleration of the global economy, and to mildly accelerate to 2.0 percent in 2024 on the back of a more accommodative monetary policy, easing inflation and higher global growth."
3073,"Fiscal balance is expected to deteriorate in 2023 as projections indicate a primary deficit of 0.7 percent of GDP, reflecting the higher social expenditures in 2023 and lower economic activity."
3074,"With the economic recovery, poverty is expected to have gone down from 28.4 in 2021 to 25 percent in 2022,1 responding to increased job opportunities and expansion of the Bolsa Família cash transfer program."
3075,A real increase in the minimum wages combined with a major overhaul of the Bolsa Família and a planned introduction of additional benefits to families with children are expected to drive poverty down to 23.9 percent in 2023.
3076,Further reduction may occur as the economy recovers but despite the social gains of earlier decades poverty and disparities remain prominent in the lives of many Brazilians in the absence of stronger investments in human capital among the less well-off.
3077,"Before the pandemic, one in five Brazilians were chronically poor; the onset of the pandemic widened pre-existing inequalities and today nearly half of Brazil’s children – the country’s future workforce – are growing up in poor households."
3078,"Water has both supported key drivers of economic growth and been pivotal to reducing poverty and promoting shared prosperity in Brazil; however, the country is facing more intense and frequent water shortages that are negatively impacting both development and livelihoods."
3079,"Many important economic sectors in Brazil are highly dependent on water: 50 percent of withdrawals are for irrigated agriculture, 25 percent for human consumption, 9 percent for industry and 8 percent for livestock."
3080,"2 Furthermore, roughly 65 percent of Brazil’s electricity is generated from hydropower.3 Future demand for irrigated agriculture and hydroelectricity is likely to result in increasingly competing demands for water considering the climate-driven projected reduction in precipitation, prolonged dry periods, and increasing 1 Using the recently published US$6.85 purchasing power parity line for upper-middle-income economies."
3081,"2 National Water and Sanitation Agency (ANA): Water Resources Situation in Brazil, 2021 (Conjuntura dos Recursos Hídricos no Brasil 2021)."
3082,3 Empresa de Pesquisa Energética.
3083,"  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) water evaporation rates.4 If not managed well, water can become a limiting factor to social and economic betterment in the country.5 4."
3084,Intensifying climate change impacts expose Brazil’s vulnerability and threaten its economic recovery and social development.
3085,"With climate change, the water cycle is expected to undergo significant change, which has implications for water security and food production, whereas extreme hydrological events – floods, droughts and landslides – are projected to worsen in frequency and intensity, with disproportionate impacts on poor and vulnerable people, in particular women.6 The country’s high susceptibility to climate hazards translates into significant economic impacts, with annual losses from natural disasters estimated at US$3.9 billion."
3086,"Floods comprise over 65 percent of the natural hazards in Brazil, and intense rainfall events that triggered flash floods and landslides were responsible for 74 percent of the deaths related to natural disasters in the 1991-2010 period.7 Addressing the challenges imposed by this context requires resilience from the water sector, as well as investments in better planning and institutional strengthening, increased water storage capacity, improved water reuse systems, and flood and drought infrastructure, including climate-resilient green infrastructure and hybrid green-gray solutions.8 State of Espírito Santo Context 5."
3087,The State of Espírito Santo (SES) outpaces Brazil’s performance in most socio-economic indicators.
3088,"SES spans 0.5 percent of Brazil’s territory and is home to 2 percent of its population (4.1 million people in 2021, across 78 municipalities)."
3089,Most of its population is urban (83 percent) and largely concentrated in the Metropolitan area of the capital Vitória (49 percent in 2021).
3090,"Despite its small size, SES contributed 1.9 percent of national GDP in 2019 and 3.5 percent of national exports in 2021."
3091,"Its GDP ranked 14th highest among Brazil’s 27 states, while its GDP per capita (US$ 6,898) ranked 9 th in 2019."
3092,"Contributions to GDP are drawn mainly from services (70 percent), followed by industry (26 percent – of which more than 45 percent from oil and gas, and to a lesser extent, mining, steel and cellulose industries) and agriculture (4 percent)."
3093,"The extractives segment (oil and gas) has grown more than 200 percent in real terms since 2002, generating a massive increase in state revenues."
3094,SES’ Human Development Index (HDI) of 0.772 was ranked 8th among Brazilian states.9 6.
3095,"Espírito Santo’s poverty and inequality levels are high, albeit lower than the national average."
3096,"Per 2021 figures, roughly 26.3 percent of SES’ population lives in poverty (c.f."
3097,4 percent nationally) and 6.7 percent lives in extreme poverty (c.f.
3098,"an 8.4 percent national average), while the Gini index was estimated at 0.52, slightly better than the country’s 0.54 average, yet higher than most countries in Latin America and the Caribbean."
3099,"At the end of 2021, 1,219,569 state residents (roughly 30 percent of the 4 World Bank Country Climate and Development Report for Brazil (forthcoming)."
3100,"5 World Bank, 2022: Water Matters: Resilient, Inclusive and Green Growth through Water Security in Latin America 6 The international literature shows that, during droughts, women and girls eat less, pay more for water, and spend more time to collect water."
3101,"During floods, women have less access to emergency shelters than men; enjoy less mobility as they often tend to children and the elderly when disaster hits."
3102,Women are also more vulnerable to gender-based violence which often increases in disaster situations.
3103,"Ordinarily, women are also underrepresented in disaster risk management (DRM) institutions and professions, and DRM policies and programs rarely consider women’s and men’s different concerns and needs."
3104,"7 World Bank, 2021, Brazil: Climate Risk Country Profile 8 World Bank, 2021, World Bank Group Climate Change Action Plan 2021-2025: Supporting Green, Resilient, and Inclusive Development."
3105,9 According to UNDP’s Human Development Atlas of 2017: 
3106," The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) state’s population) were registered in Brazil’s Cadastro Único social registry,10 rendering them eligible to receive government assistance."
3107,Raising and sustaining real GDP growth and reducing poverty and inequality levels are overarching State development goals.
3108,"Throughout the past decade, both Brazil and SES have posted sluggish economic growth as well as increases in poverty and income inequality rates."
3109,Since 2012 the state’s average annual real GDP growth rate has been slightly negative.
3110,Poverty has increased by 4.9 percentage points and extreme poverty by 5.1 points over the same period.
3111,"This is in sharp contrast to the 2000-2010 period, when SES’s economic growth, poverty levels and income inequalities had improved considerably, outpacing gains made by Brazil as a whole."
3112,The State 2030 Strategic Development Plan11 lays out a comprehensive agenda to boost economic growth and reduce poverty and inequalities setting ambitious governance and socio-economic development targets.
3113,"These would be achieved through a combination of public sector reforms, job creation programs and increased investment in many areas, including climate adaptation through increased water security, which the proposed Project will support."
3114,"In December 2020, the state government launched an economic recovery plan (Plano Espírito Santo – Convivência Consciente) to mitigate the effects from the COVID-19 pandemic, focused on boosting public and private investments, promoting productive inclusion, and creating jobs."
3115,"Achieving these goals will require particular attention to gender disparities: even before the pandemic, women’s participation in the labor market in SES was significantly lower than men’s (57.3 percent compared to 77.1 percent).12 8."
3116,"The State has a history of partnering with the World Bank on water initiatives dating back to the 1990s, when the focus was primarily on improving water supply and sanitation (WSS) services, coupled with watershed conservation and restoration to reduce water treatment requirements for domestic water supply."
3117,"More recently, the scope of water operations has evolved to address more complex water security challenges."
3118,"While the ongoing Bank-financed Espírito Santo Integrated Sustainable Water Management Project13 has continued investments to improve sanitation services,14 it has started strengthening the State’s capacity to manage water resources in a more sustainable manner and to prepare and respond to water-related disasters."
3119,"This progressive evolution of the State’s priority and the Bank’s water agenda from basic WSS services to a more complex water security agenda, related to the sustainable management of water resources for multiple uses and the reduction of hydrological risks is typical in a well performing state, in an upper-middle-income country, whose water security is at risk because of the effects of climate change."
3120,This evolution towards a more sophisticated water security agenda focused on reducing expected climate change impacts and strengthening institutional capacity will deepen in the proposed Project.
3121,10 The Cadastro Único (CadUnico) is the country’s social registry used to identify individuals and households that are eligible to receive government support.
3122,The half a minimum wage per capita income threshold (R$550 monthly) used by the CadUnico has been found to be a close representation of the costs of basic needs in Brazil (Lara Ibarra et al.
3123,2021) and helps thus accounting for a broader group of low income-households.
3124,11 The document was published in 2013.
3125,Access:  12 According to 2019 data from the Instituto Jones dos Santos Neves.
3126,Access:  13 Espírito Santo Integrated Sustainable Water Management Project (P130682) approved in 2014.
3127,14 Bank operations have contributed to improved sewerage treatment and collection indicators in Espírito Santo.
3128,"Between 2010 and 2019, access increased from 39.9 percent to 55.9 percent, with the highest improvement among the urban population, whose access rose from 46.7 percent to 62.8 percent."
3129, The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) B.
3130,Sectoral and Institutional Context Sectoral Context 9.
3131,Espírito Santo’s abundant water resources mask significant temporal and geographic disparities.
3132,"Located under the highly degraded Atlantic Forest biome of Brazil’s Southeast Region, the state’s territory is divided into eight hydrographic units which correspond to 14 River Basin Committees (RBCs)."
3133,"Precipitation levels range from 900 mm to 1,700 mm, with the lowest incidence in the northern portion of the state and the highest in the southeast, with significant seasonal variability."
3134,"As a result, the state faces chronic water deficits during the dry season in 3 of the 8 hydrographic units (or the northern half of its territory) and competing demands for water allocation."
3135,"Approximately 78 percent of withdrawals in SES are for irrigated agriculture, 14 percent for human consumption, 5 percent for industry and 1 percent for livestock."
3136,Information on groundwater is uneven and limited by insufficient hydrogeological data on the existing aquifers.
3137,"In Espírito Santo, climate change impacts the well-being of its population, economy and environment principally through increased water security risks."
3138,"In SES, water security risks relate to water deficits as well as extreme events such as floods, droughts and landslides."
3139,"Historical records and available climate projections for the state reveal that climate change is playing a pivotal role in the increased frequency and intensity of water-related disasters (floods, landslides and droughts), as well as in the intensity and geographic spread of water deficits."
3140,Projections from the climate change institute of the Federal University of Espírito Santo show that extreme water events are expected to increase further throughout SES.
3141,"Moreover, average temperatures will continue to rise, while average precipitation is expected to decline.15 The combination of higher temperatures and lower precipitation is expected to progressively increase the number of hydrographic units with water deficits towards the south of the State, as well as the intensity of water deficits in the north."
3142,"The increases in extreme events and water deficits are expected to adversely affect the state’s overall economy, environment, and the well-being of its population."
3143,Water security risks are exerting a heavy and increasing toll in the State of Espírito Santo.
3144,"SES is prone to frequent and extreme hydrological events: floods and attendant landslides across the state, but mostly in the south and coastal areas, and droughts mostly in the north."
3145,"Between 2013 and 2020, 794 disasters were registered throughout SES, more than double the previous decade, of which 27 percent were related to floods, 21 percent to droughts and 7 percent to landslides, leading to an estimated 120 deaths and the displacement of roughly 230,000 people."
3146,"In 2020 alone, extreme rainfall led to severe flooding that impacted 39 municipalities, resulting in 10 fatalities, the displacement of 14,230 people, leaving another 2,340 homeless, with economic losses estimated at US$44 million."
3147,"Floods and landslides have destroyed housing and infrastructure in densely populated areas, often leading to human casualties, while droughts have led to substantial reductions in river flows, conflicts between water users, and reduced agricultural production in rural areas."
3148,"Floods and droughts have also adversely affected the provision of essential services, including electricity and water supply (with severe rationing in 2014)."
3149,"In addition to climate change, unregulated human activity continues to undermine water security."
3150,"The impacts of floods, landslides, water deficits, and droughts throughout the state are exacerbated by anthropogenic factors such as unplanned and unregulated urban spread into flood plains 15Projections of climate change for Espírito Santo using high-resolution regional modeling."
3151,"Universidade Federal do Espírito Santo, 2019."
3152," The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) and along steep hillside slopes, with often inadequate or poorly maintained urban drainage systems and illegal dumping into drains."
3153,"Another factor that has contributed to increased water-related risks is the degradation of watersheds resulting from the conversion of the native Atlantic Forest biome – that originally covered the entire State – to pasture and cropland, which now cover approximately 55 percent of SES’ territory (compared to 22 percent remaining native forest coverage)."
3154,"This change in land use tends to increase the intensity of runoff, exacerbating floods, while reducing soil water retention and deep percolation to aquifers, thereby increasing water deficits in the dry season and vulnerability to dry spells and droughts."
3155,"The change in land use also promotes erosion and sedimentation of riverbeds and reservoirs, further increasing the area’s vulnerability to flooding, droughts and dry spells."
3156,It bears highlighting that the Atlantic Forest biome’s exceptional biodiversity and vulnerability to continuous threats ranks it among the world's highest priority areas for conservation.
3157,"To foster climate adaptation by addressing these water security risks, SES has implemented both green and gray infrastructure:16 (a) As regards green (or nature-based) interventions, Espírito Santo was among the first states to pioneer payments for environmental services (PES)17 as a means of restoring degraded watersheds and the hydrological services they provide."
3158,"However, more remains to be done."
3159,"Brazil’s largest state- level restoration program – the Reflorestar Program – was launched in 2011 to promote the restoration of the hydrological cycle and reduce erosion, initially focusing on the river basins that supply water to the Great Vitoria Metropolitan Region."
3160,The program protects downstream water uses by offering upstream landholders payments for reforesting and adopting sustainable land use practices in watersheds that could generate substantial environment services.
3161,"Since 2011, sustainable land use practices have been adopted throughout 9,000ha under Reflorestar (5,400ha reforested and 3,700ha under productive sustainable uses) and over 10,000ha of standing forest have been conserved."
3162,"The implementation of such interventions together with the establishment of protected areas, and control of illegal logging has allowed SES to stabilize its forested area over the past 20 years, in stark contrast to Brazil as a whole."
3163,"In addition to the PES, the state finances complementary structures for soil and water conservation, such as water infiltration ponds, contour ditches and terraces."
3164,"These practices and structures improve soil retention and water infiltration, thus helping: (i) reduce water treatment costs; (ii) reduce maintenance costs and increase the life of reservoirs and other water infrastructure by decreasing sediment flows; and (iii) reduce flood risks during the wet season and decrease vulnerability to dry spells and droughts by increasing water availability during the dry season by slowing runoff."
3165,"In addition to these adaptation benefits, they enhance carbon sequestration in soils and aboveground biomass, generating climate mitigation co-benefits."
3166,"Moreover, most of these land use practices and structures increase participating landholder incomes, rendering them “no regret” options."
3167,(b) Traditional gray infrastructure applied to water resources management (WRM) has gained more traction recently.
3168,The SES still has a relatively small stock of gray infrastructure.
3169,"The few existing water 16 “Gray” infrastructure generally refers to conventional human-built structures (such as storm drains, pumps, dams, levees, reservoirs, treatment plants, and pipes) while “green” interventions refer to solutions that harness natural systems (such as forests, wetlands, soil or mangroves) to provide water resources management options."
3170,"Evidence suggests that integrating green and gray infrastructure provide lower-cost and more resilient services, helping fill the need for climate-resilient solutions."
3171,"17 Espírito Santo has received continued World Bank support throughout this process, first under the Espírito Santo Biodiversity and Watershed Conservation and Restoration Project (P094233) and subsequently, under the Espírito Santo Integrated Sustainable Water Management Project (P130682)."
3172, The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) storage structures were constructed over the past 20 years for power generation.
3173,It was not until the 2014 drought that the need to build reservoirs to store water and regulate river flows or use hydroelectric reservoirs for emergency water supply was first raised.
3174,"Recognizing the devastating impacts of drought on agriculture and animal husbandry, in 2017 the State Secretariat for Agriculture, Livestock and Fisheries launched a State Dams Construction Program with the aim of building 60 reservoirs and refurbishing large dams to mitigate the impacts of drought on the sector."
3175,The 22 small reservoirs that have been built to date under the program have improved both the reliability and availability of water to rural populations.
3176,"Additional gray investments, in combination with green infrastructure, will likewise be needed to control or mitigate flooding (storage, dykes, river channeling, among others), in line with the state’s plans to continue investing in more integrated green-gray solutions to address water security risks and adapt to climate change."
3177,"The State has identified priority river basins and municipalities requiring urgent interventions to increase climate adaptation through increased water security, by reducing hydrological risks and managing water deficits."
3178,"The priority flood risk areas encompass the Itapemirim basin, as well as the municipalities of Águia Branca, João Neiva, Ibiraçu, Iconha and Alfredo Chaves, which are mostly located in the southern half of the state."
3179,"The priority drought-prone risk areas are the four river basins located in the State’s Center-North region: Santa Maria do Rio Doce, Santa Joana, Pontões e Lagoas do Rio Doce, and Barra Seca e Foz do Rio Doce."
3180,These areas are represented in the map in Annex 5.
3181,Institutional Context 15.
3182,"Although Espírito Santo boasts solid institutional and policy frameworks for Water Resources and Disaster Risk Management, their implementation needs strengthening to address water security risks and increase climate adaptation."
3183,(a) Water Resources Management (WRM).
3184,"The 2014 State Water Law18 establishes the State Water Resources Policy with the objective to ensure that water resources are managed in an integrated and sustainable manner to guarantee water security of adequate quantity and quality for current and future generations, as well as the prevention of adverse hydrological events."
3185,The Policy defines the seven instruments to achieve these objectives and establishes the State’s Integrated Water Resources Management System (Sistema Integrado de Gerenciamento de Recursos Hídricos do Estado do Espírito Santo - SIGERH-ES) which serves as the organizational framework governing WRM in Espírito Santo and comprises five entities with key WRM roles.
3186,The implementation/modernization of the seven instruments and the strengthening of the key entities is considered pivotal to bolster SIGERH-ES’ effectiveness in improving water security and implementing the Water Resources Policy.
3187,"The description and main challenges of the WRM instruments and SIGERH-ES’ organizational structure are summarized, respectively, in tables 1 and 2 below: Table 1 – WRM policy instruments Instrument Status and challenges 1) State Water Resources The 2018-2038 State Water Resources Plan and 10 (of the 14 required) river basin Plan (Plano Estadual de water resources plans were enacted."
3188,"However, they are not well integrated with Recursos Hídricos - other state and municipal plans, and more attention needs to be paid to their PERH) implementation, monitoring and evaluation, and consideration of hydrological and 2) River basin plans climate change risks."
3189,"18 Law No10,179/2014, of ."
3190," The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) Instrument Status and challenges 3) Classification of water Water quality standards have been defined where basin plans were developed, but bodies they have yet to be operationalized."
3191,"4) Water use and discharge The granting of water use rights has been in place since 2005, however most users permits do not have a water permit and permitted users face low compliance control."
3192,"The formalization of water use rights is key to increase financial resources for WRM and are also critical to determine water use, control abstractions, and manage water deficits and droughts risks."
3193,"5) Water use and discharge Water use fees, a key source of river basin plan and SIGERH-ES financing, have yet fees to be defined and approved by the river basin committees."
3194,6) Water resources The system needs to be upgraded.
3195,"Existing WRM information is not organized information system, within a unified system nor readily available to the public."
3196,"There are significant including water users water availability, quality and demand data gaps that jeopardize both the registry sustainability of water resources, and protection against extreme hydrological risks."
3197,"7) Payment for Although the PES has been successfully implemented under the Reflorestar Environmental Services - Program since 2011, additional efforts could be made to (i) have direct beneficiaries PES (such as municipalities) share at least part of the costs with the state government, which would require a stronger impact monitoring program; and (ii) bridge gender gaps given the significant underrepresentation of women among the beneficiary landholders of Reflorestar.19 Table 2 – SIGERH-ES: WRM organizational framework Entity Functions Status and challenges 1) State Water Resources (i) enact and monitor implementation of the The CERH has been established and Council (Conselho State WRM policies and Plan; (ii) establish holds periodic meetings, however Estadual de Recursos water rights, discharge permits and water its operation would benefit from Hídricos - CERH) use and discharge fees criteria and rules; (iii) more proactive discussions and authorize the creation of basin agencies and actionable proposals related to committees; (iv) approve water bodies conflicts over water resources."
3198,classification; (v) act as court of appeal for water conflicts; and (vi) monitor the use of water use and discharge fees.
3199,"2) State Water Resources (i) regulate water resources use; (ii) plan and AGERH lacks sufficient qualified Agency (Agência promote actions to reduce droughts and staff, equipment and financial Estadual de Recursos floods risks in conjunction with state civil resources to fulfill its mandate."
3200,Hídricos - AGERH) defense agencies; (iii) oversee the planning and execution of public works for multi-use water storage and supply; and (iv) perform hydrological monitoring.
3201,3) State Secretariat for (i) submit the PERH and any amendments to SEAMA’s technical advisory role is Environment and Water CERH’s appreciation; (ii) raise funds for hindered by limited capacity to Resources (Secretaria do PERH-related actions; (iii) enable the coordinate processes and make Meio Ambiente e adequate operation of the CERH through relevant information available.
3202,Recursos Hídricos - appropriate human and financial resources.
3203,SEAMA) It also implements the PES program.
3204,"19Starting in 2021, Reflorestar has set gender as a criterion for prioritization of applications."
3205,See Annex 4 for additional references.
3206, The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) Entity Functions Status and challenges 4) River Basin Committees (i) approve the River Basin Plan; (ii) propose The 14 River Basin Committees that (RBCs) water use and discharge fees to CERH; (iii) serve SES’s entire territory have monitor the implementation of the Basin been created but need additional plans; (iv) submit criteria for the granting of support to be fully operational.
3207,"As is water rights to CERH; (v) approve criteria for the case nationally, RBCs are the cost allocation of multiple use water endowed with strong deliberative works and services; (vi) approve respective powers, but generally have limited Basin Agency annual budget; and (vii) implementation capacity and play arbitrate water conflicts."
3208,essentially an advocacy role.
3209,"Although women currently hold a slight majority of the managerial positions in the agencies involved with SIGERH-ES (AGERH, SEAMA and the CERH), they account for only 22 percent of members of the RBCs (see Annex 4)."
3210,"The decentralized and participatory nature of the WRM framework presents an opportunity to strengthen citizen engagement through the RBCs, resulting in more effective engagement processes and enforcement mechanisms."
3211,"5) River Basin Agencies Function as executive, financial and The agencies are not yet in place administrative entity to support the and their functions are partly being respective RBCs in managing water implemented by AGERH."
3212,"Its resources under their mandate, including (i) establishment is conditional to updates/revisions and implementation of evidence of financial sustainability the River Basin Plans, (ii) support to through funds generated by water municipal administrations, (iii) maintaining charges."
3213,water user registries and balance of water availability in its area of operation.
3214,(b) Disaster Risk Management (DRM).
3215,"The Federal and State Civil Defense Laws20 establish the State Civil Defense System (Sistema Estadual de Proteção e Defesa Civil - SIEPDEC-ES) which plays a critical role in managing hydrological risks since it is responsible for coordinating disaster prevention, mitigation, preparedness, response, and reconstruction."
3216,It is also responsible for carrying out state-level functions and instruments defined in the National Policy for Civil Protection and Defense (Política Nacional de Proteção e Defesa Civil - PNPDEC).
3217,"The SIEPDEC-ES’s leading organization is the State Coordination for Protection and Civil Defense (Coordenadoria Estadual de Proteção e Defesa Civil - CEPDEC), housed within the Military Fire Brigade of Espírito Santo (Corpo de Bombeiros Militar do Espírito Santo – CBMES)."
3218,Women account for only 1.9 percent of the CBMES contingent and they are a minority of the audience of the training courses offered annually by CEPDEC to municipal committees of civil defense and protection.
3219,Table 3 summarizes SIEPDEC-ES’s main functions and instruments and their respective challenges.
3220,"20 State Law No.694/2013, amended by the State Law No767/2014 and Federal Law No12,608 of ."
3221," The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) Table 3 – SIEPDEC-ES Functions and instruments Status and challenges Approval and regular updating of The operationalization of the PEPDEC could be improved with each the State Protection and Civil organization involved defining in detail how they would carry out their Defense Plan (Plano Estadual de disaster preparedness and response functions as defined in the plan, Proteção e Defesa Civil - PEPDEC) ensuring they have the equipment, staff and resources available and protocols in place."
3222,"Mapping of risk areas and studies Significant progress has been made in rolling out the system, including to identify threats and mapping high and very high-risk areas throughout the state’s 78 vulnerabilities municipalities."
3223,"Hydrometeorological and Information gathered under “Alert!Espírito Santo” system, which integrates geological monitoring in risk areas different monitoring systems and emits automatic early warnings in case of floods, landslides and dry spells."
3224,"Supporting municipalities in Important achievements include support to 17 municipalities in preparing surveying of risk areas, preparing their Municipal Rainwater Master Plans and Disaster Risk Reduction Plans; Civil Protection and Defense and the inclusion of 69 municipalities (88 percent of the state’s total) in the Contingency Plans and disclosing national disaster monitoring and alert system."
3225,"However, more is needed to prevention and alert protocols and build municipal capacities and community awareness for the effective emergency actions."
3226,activation and implementation of contingency plans in urban areas.
3227,"CEPDEC’s leadership and Going forward, the disaster response capacity of the CEPDEC begs coordination of the SIEPDEC-ES improvement, notably its response time and the effectiveness of its relief interventions, which are jeopardized by the lack of specialized equipment and staff training."
3228,"(c) In addition to the member entities of the WRM and DRM governance frameworks, the Department of Buildings and Roads of Espírito Santo (Departamento de Edificações e de Rodovias do Espírito Santo – DER-ES) has recently taken a more central role in executing civil works and recovering infrastructure related to hydrological disasters."
3229,"(d) Overall, there is still a significant need to reduce water-related risks through the preparation and implementation of integrated structural and non-structural measures, identified through rigorous integrated flood and drought planning processes that factor in climate change uncertainties."
3230,"Building on the long-term engagement between the State and the Bank, the Government of Espírito Santo has requested the Bank’s assistance to respond to and address the above challenges, encompassing climate adaptation through water security in priority areas by financing drought and flood management plans, implementing a combination of green and gray infrastructure (notably expanding the Reflorestar program), as well as improving State-level WRM and DRM governance and management instruments."
3231,This broader initiative seeks to expand and consolidate prior results achieved in these areas and move the needle on reducing the state’s water security risks and increasing its capacity to prepare and respond to extreme hydrological events.
3232,C. Relevance to Higher Level Objectives 17.
3233,"The proposed operation is fully aligned with the World Bank Group's FY18-FY23 Country Partnership Framework (CPF) for Brazil21 and informed by the Bank Group’s Climate Change Action Plan 21Report No113259-BR, discussed by the Executive Directors on , and confirmed by the corresponding Performance and Learning Review (PLR)."
3234," The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) (CCAP) and the Brazil Country Climate and Development Report (under preparation).22 It fits within the CPF’s Focus Area 3, Inclusive and Sustainable Development and contributes to Objectives 3.1 (Support achievement of Brazil’s Nationally Determined Contribution (NDC) under the Paris Agreement23 with a particular focus on land use) and 3.2 (Provide more inclusive and sustainable urban services), by addressing the vulnerability and exposure of people and assets to increased water security risks, which are the main manifestations of climate change impacts in SES, contributing to adaptation objectives, as well as increasing carbon sequestration through increased forested area, thus supporting mitigation targets."
3235,"In addition, by investing in institutional strengthening and more effective WRM tools, the Project will help enhance the SES water sector’s governance, operational efficiency, and sustainability, increasing resilience to flood and drought risk."
3236,"The Project will also support Brazil’s efforts to reach its NDCs, which aim to reduce total net greenhouse gas emissions by 37 percent by 2025 and 50 percent by 2030, relative to 2005, and create climate neutrality (net-zero emissions) in 2050."
3237,"The national strategy lays out a transition to a cleaner energy mix and an increased use of climate risk management approaches, which is aligned with the Project’s objectives."
3238,"The Project likewise fosters innovation, via the integration of flood risk reduction, green interventions, and water basin revitalization activities, reflecting the Bank’s global lessons and prior engagements with the state (see sections E and F)."
3239,"The Project is aligned with the Bank Group’s paper on Global Crisis Response Framework (GCRF), discussed by the Executive Directors on .24 The proposed activities under the Project fit into two of the interrelated four pillars that are underpinned by the Green, Resilient and Inclusive Development (GRID) agenda: (Pillar 3) Strengthening Resilience and (Pillar 4) Strengthening Policies, Institutions, and Investments for Rebuilding Better."
3240,"The operation will (i) help build the state’s long-term resilience by strengthening crisis preparedness and disaster risk management to support the SES’ capacity to handle hydrological disasters (Pillar 3 contribution through Components 1 and 2), and (ii) advance climate-smart investments and build strong institutions to promote climate adaptation and improve development outcomes (Pillar 4 contribution through Components 1 and 3)."
3241,"The proposed Project contributes to the SES goals set out in its 2030 Development Plan aimed at improving the quality of life of its population, economy and the environment, and adapting to a changing climate by reducing water security risks."
3242,"Support will focus on strategic municipalities and river basins where it will increase water security by improving the State’s capacity to manage water deficits, drought, flood and landslide risks, contributing to climate adaptation and mitigation and environmental conservation."
3243,It will also support implementation of federal and state water resources and civil defense policies/laws.
3244,22 The Country Climate and Development Report (CCDR) is a new World Bank core diagnostic tool to help countries align climate action and development efforts and absorb new climate-related technologies as they emerge.
3245,"The CCAP 2021-2025 aims to advance the climate change aspects of the Bank Group’s Green, Resilient, and Inclusive Development (GRID) approach, which pursues poverty eradication and shared prosperity with a sustainability lens."
3246,"23 Based on the second cycle of the National Adaptation Plan (NAP), the Project will support three of the four NDC adaptation measures: (i) the strengthening of the management of water resources; (ii) the development of adaptation strategies in the agricultural sector through drought plans and alert systems, as well as natured-based solutions and payments for environmental services; and (iii) adaptation plans for the urban landscape to ensure the resilience of the population and infrastructure (through the reduction of flood and landslide risks)."
3247,It will also support its mitigation strategies through carbon sequestration in reforested areas.
3248,"24 World Bank Group, 2022, Global Crisis Response Framework Paper: Navigating Multiple Crises, Staying the Course on Long- Term Development - The World Bank Group’s Response to the Crises Affecting Developing Countries."
3249, The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) II.
3250,PROJECT DESCRIPTION A.
3251,Project Development Objective PDO Statement 20.
3252,"The Project Development Objectives (PDO) are: (i) to strengthen the Borrower’s capacity to manage water security risks in a changing climate; (ii) to reduce those risks in selected areas of the Borrower’s territory; and (iii) in case of an Eligible Crisis or Emergency, respond promptly and effectively to it."
3253,Achievement of the PDO will be measured by specific indicators and targets.
3254,"Strengthening the State’s capacity to manage water security risks will be measured by the improvement in the application of water resources and disaster management policy instruments (State WRM plan; flood or drought management plans; water rights; water use charges; flood forecast and alert systems), and in the quality and availability of water and climate information for decision making."
3255,"This increased capacity to manage water security risks will also come from improvement in the State’s capacity to use these instruments and information as a result of training, better equipment and other improvements that will be recommended by the AGERH institutional assessment and the WRM system financing assessment."
3256,"The reduction in water security risks in selected areas will be measured by the number of people, disaggregated by gender, benefitting from reduced water security risks, be it from water deficits, floods or droughts, as well as by the implementation of forecast and early warning systems."
3257,"PDO Level Indicators • PDO 1: Water resources management instruments improved;25 • PDO 2: Digital operations command system implemented;26 • PDO 3: Land area under sustainable landscape management practices (Corporate Results Indicator – CRI); • PDO 4: Itapemirim river basin forecast and early warning system operational and issuing reports; and • PDO 5: People benefitting from reduced water security risks, disaggregated by gender.27 B."
3258,Project Components 22.
3259,"The proposed Project is a US$113.6 million Investment Project Financing (IPF) operation, financed by a US$86.1 million IBRD loan and US$27.5 million in state counterpart funds."
3260,The Project will be implemented over a six-year period.
3261,"Proposed interventions are grouped around three components focused on the following geographic scales: statewide (Component 1), river basin (Component 2) and 25 Water resources management instruments improved will be measured by: (i) an increase in water rights decisions, based on revised criteria, improved information and use of a decision support system; (ii) the State Water Resources Plan updated and approved by the State Water Resources Council; and (iii) the State Water Resources Information System modernized and operational."
3262,"26 The digital operations command system is the electronic emergency command, control and coordination response system, to operate as a digital and interactive web-based platform for high-complexity events that will allow coordinating efforts to stabilize crisis situations."
3263,27 It refers to the people that will benefit from the implementation of structural and non-structural measures to reduce water security risks in selected areas.
3264, The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) municipal (Component 3) levels as well as support to Project management (Component 4) and a zero-fund Contingent Emergency Response (Component 5 - CERC).
3265,Annex 2 presents a detailed Project description and Annex 5 displays a map with the intervention areas.
3266,Component 1 – Building the Borrower’s capacity for water security in a changing climate (US$15.52 million of which US$14.05 million IBRD).
3267,"This component will strengthen the state’s capacity to manage water security risks by strengthening both SIGERH-ES and CEPDEC water resources and disaster management capacities, respectively, and fostering their better integration."
3268,"This will contribute to climate adaptation in two ways: firstly, by improving the capacity to manage water security risks, as most climate change impacts people, the economy, and the environment, through increases in those risks (see sectoral context) and, secondly, by designing and implementing policy instruments taking into account climate change uncertainty, improving climate change related information for decision making and providing specialized staff training on this topic."
3269,This will be done through two subcomponents: (a) Subcomponent 1.1.
3270,Strengthening SIGERH-ES’s water resources management capacity (US$7.43 million of which US$7.43 million IBRD).
3271,This subcomponent aims to strengthen SIGERH-ES’ institutional capacity to manage water resources within the context of ever increasing vulnerability to climate change.
3272,Activities under this subcomponent will be designed to specifically take into consideration climate change.
3273,"Financed activities include, inter alia: (i) the completion of AGERH’s institutional assessment, the preparation of a state water resources management financial sustainability assessment, and the implementation of their key recommendations; (ii) capacity building activities targeted to SIGERH-ES’ institutions, including hydrological disasters and climate change training; (iii) the strengthening of key WRM tools, including: (a) the strengthening of the criteria underlying the issuance of water rights taking into consideration water related risks, processes, and decision making system; supporting water users to effectively prepare their water rights requests; and upgrading/updating user and water rights digital registries; (b) the development of instruments to finance the state water resources management activities, including the definition and submission for approval of water use charges at the river basin committees level; (c) the modernization and operationalization of the state’s water resources information system (Sistema Estadual de Informações sobre Recursos Hídricos – SEIRH) and related hydrological and hydrogeological monitoring networks; and (d) updating of the State Water Resources Plan (PERH) to consolidate other water related sectoral planning and strengthen hydrological extreme events related aspects; (iv) the development of hydrogeological and hydrological studies of selected aquifers and river basins; and (v) the strengthening of a State Water Quality Laboratory, including laboratory and IT equipment, licenses and software necessary for ongoing water quality monitoring and testing."
3274,"Subcomponent 1.1 supports the implementation of the World Bank’s GCRF, Pillar 4 “Strengthening Policies, Institutions and Investments for Rebuilding Better”."
3275,(b) Subcomponent 1.2.
3276,Strengthening CEPDEC’s disaster risk management capacity (US$8.09 million of which US$6.62 million IBRD).
3277,"This subcomponent seeks to strengthen the State Coordination for Protection and Civil Defense’s (CEPDEC) capacity to manage water security risks and respond to disasters by supporting, inter alia: (i) the construction and supervision of works of a specialized disaster response center (Centro Especializado de Resposta a Desastres – CERD); (ii) the acquisition of specialized equipment, notably fire trucks and emergency kits; (iii) the provision of training, including on gender aspects in DRM; and (iv) the design and implementation of an electronic emergency command, control and coordination response system (Incident Command System software)."
3278,"Subcomponent 1.2 supports the implementation of the World Bank’s GCRF, Pillar 3 “Strengthening  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) Resilience”."
3279,Component 2 – Demonstrating climate-smart integrated water security risk reduction approaches in selected basins (US$30.18 million of which US$23.39 million IBRD).
3280,"This component will contribute to reduce water security risks by reducing water contamination and sediment loads as well as flood and dry season water deficits, while promoting biodiversity conservation and enhancing existing carbon sinks in soil and aboveground biomass,28 leading to significant climate adaptation and mitigation benefits."
3281,"Activities are divided into two subcomponents, both of which support the implementation of the World Bank’s GCRF, Pillar 3 “Strengthening Resilience”: (a) Subcomponent 2.1."
3282,Expanding the support to the Reflorestar Program in selected river basins (US$16.06 million of which US$12.40 million IBRD).
3283,"This subcomponent aims to support PES to increase forest cover and implement other climate smart nature-based solutions to reduce water security risks in selected river basin’s priority areas, including Itapemirim, Itabapoana and Benevente, in the South, and Pontões e Lagoas do Rio Doce and Santa Maria do Doce, in the Center-North."
3284,"It will finance, inter alia: (i) the provision of payment for environmental services to land users for the reduction of water security risks through reforestation, improved land use and agricultural practices; (ii) the implementation of physical water and soil conservation structures (such as small/mini water detention ponds or soil built dry boxes); and (iii) the provision of technical assistance to SEAMA to improve the Reflorestar Program’s efficiency and effectiveness, including by, inter alia: (a) strengthening the Program’s targeting; (b) developing additional financing sources, such as from the private sector; (c) strengthening its institutional capacity, including through the hiring of a Technical and Operational Firm to provide support to the Program; (d) improving its communication strategy; (e) assessing its effectiveness (in inter alia, attracting participants – including vulnerable and marginalized groups, with a specific target to reach 40 percent of women among new Reflorestar participants – targeting payments to priority areas; providing the desired environmental services; and keeping administrative costs low) and using the lessons to improve it; and (f) improving the Portal Reflorestar, which participants use to enroll in the Reflorestar PES Program and SEAMA uses to administer it."
3285,See Annex 2 for information on Reflorestar’s operation and results.
3286,(b) Subcomponent 2.2.
3287,Improving flood and drought management in priority river basins (US$14.12 million of which US$10.99 million IBRD).
3288,"This subcomponent aims to apply an integrated flood risk management approach, with an emphasis on nature-based solutions (NBS), to reduce flood risks in the Itapemirim river basin; and to increase capacity to respond to drought in priority basins located in the State’s Center-North region (tentatively the following four river basins: Santa Maria do Rio Doce, Santa Joana, Pontões e Lagoas do Rio Doce, Barra Seca e Foz do Rio Doce),29 through, inter alia: (i) in the Itapemirim basin: (a) the development of an integrated flood risk management plan; and the implementation of nature-based solutions identified in the plan that would complement Reflorestar activities financed under subcomponent 2.1; (b) the strengthening of the flood monitoring, forecasting and alert system; and (c) the implementation of flood risk preparedness communications campaigns for at-risk populations, with a focus on women through targeted awareness raising campaigns; and (ii) in the Center-North region: (a) the development of drought preparedness plans; 28 By promoting conservation of forest cover, restoration of degraded ecosystems and adoption of sustainable land management in upstream watershed areas, Component 2 interventions seek to increase infiltration, reduce runoff, and limit access to rivers by livestock."
3289,"This results in curbing erosion, and hence sediment loads that tend to affect water quality and damage reservoirs."
3290,"29 Including focus on the municipality of São Roque do Canaã, in the Santa Maria do Rio Doce basin."
3291, The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) the preparation and implementation of rational water use plans; and (b) the piloting of issuance of collective water rights to groups of family farmers in micro-basins to facilitate participatory reallocation of water in times of drought.30 25.
3292,Component 3 – Reducing flood risk in targeted municipalities (US$60.91 million of which US$41.67 million IBRD).
3293,This component aims to reduce floods risks in targeted municipalities which have faced strong flood episodes over the past few years.
3294,"It will finance, inter alia: (i) Design and Build contracts for the implementation of urgent flood risk reduction investments,31 as well as supervision of work services, in three municipalities (Águia Branca, João Neiva and Ibiraçu) for which technical solutions have been identified, but feasibility studies need revisions; and (ii) the carrying out of studies to identify more innovative integrated structural and non-structural solutions to reduce flood risks in two additional municipalities (Iconha and Alfredo Chaves); and (iii) the implementation of some of the prioritized innovative solutions resulting from these studies."
3295,"Targeted municipalities have been classified as “high” or “medium” urban flood hazard based on the ThinkHazard32 methodology, meaning that potentially damaging and life-threatening urban floods are expected to occur at least once in the next 10 years."
3296,"Component 3 supports the implementation of the World Bank’s GCRF, Pillar 4 “Strengthening Policies, Institutions and Investments for Rebuilding Better”."
3297,Component 4 – Project Management (US$6.99 million of which US$6.99 million IBRD).
3298,"This component aims to strengthen the Borrower’s capacity to carry out Project activities, including fiduciary, technical, environmental and social, and monitoring and evaluation (M&E) aspects."
3299,"To this end, it will finance the provision of technical assistance, consulting and non-consulting services, training, operating costs and goods to key government agencies necessary to effectively carry out activities associated with Project implementation, including the hiring of a consulting firm to provide technical and operational support."
3300,Component 5 – Contingent Emergency Response Component (CERC) (zero budget).
3301,"This component will support the State of Espírito Santo, following an Eligible Crisis or Emergency, to respond to emergency situations associated with hydrological events."
3302,"This disaster recovery contingency zero-fund component could be triggered following the declaration of a disaster or emergency, defined as “an event that has caused, or is likely to imminently cause, a major adverse economic and/or social impact associated with natural or man-made crises or disasters.” When triggered, funds may be reallocated to facilitate the rapid financing of goods and services under streamlined procurement and disbursement procedures."
3303,"Eligible activities may include emergency rehabilitation works, supply of critical equipment, or any other critical inputs to respond to the impacts of floods, landslides, droughts and other hydrological climate-related extreme events."
3304,"If activated, this component would therefore directly enhance the residents’ resilience to climate change."
3305,"The CERC supports the implementation of the World Bank’s GCRF, Pillar 3 “Strengthening Resilience”."
3306,30 These are water rights issued to a group of family farmers using water from a defined portion of the river.
3307,The water right is issued to the group and they reallocate among themselves as needed.
3308,Additional information is presented in Annex 2.
3309,"31 These no-regret interventions consist of drainage works to increase runoff capacity, including dredging, widening of cross sections and river channeling."
3310,is a web-based tool enabling non-specialists to consider the impacts of disasters on new development projects.
3311,The Global Facility for Disaster Reduction and Recovery (GFDRR) supports the tool in partnership with the World Bank Group and other institutions.
3312, The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) C. Project Beneficiaries 28.
3313,The proposed Project is expected to benefit Espírito Santo’s 4.1 million residents by enhancing both the State’s integrated water resources and disaster risk management capacities (Component 1).
3314,Women will be over-represented among beneficiaries as they represent a larger share among beneficiaries at all activities levels.
3315,"At the river basin level, 2,800 landowner participants will directly benefit from the PES program, whereas an estimated 1.3 million will indirectly benefit from increased water security in the five selected river basins (subcomponent 2.1); the population of the Itapemirim River Basin (523,000 inhabitants) will benefit from integrated flood management interventions (subcomponent 2.2); and residents of the four river basins (538,000 approximately) will benefit from increased capacity to respond to drought (subcomponent 2.2)."
3316,"At the municipal level, roughly 39,000 residents of the three targeted municipalities (Águia Branca, Ibiraçu, and João Neiva)33 will benefit from flood risk reduction interventions (Component 3), among which a significant share earn less than half a minimum wage per capita, and thus are either poor or at high risk of becoming poor,34 while 29,000 residents of Alfredo Chaves and Iconha35 will stand to gain from improved designs and innovative studies that will inform future flood risk works in the municipalities."
3317,The proposed Project will likewise provide several institutional benefits.
3318,"It will contribute to strengthening the State’s capacity to promote improved water resources and land management and nature-based solutions applied to disaster risk management, the adoption of climate-smart and sustainable practices in integrated water management, all of which would eventually be applied in interventions beyond the Project’s targeted areas."
3319,"Finally, public investments made through the proposed Project will help unlock opportunities for economic development and mobilization of private investments."
3320,Planned interventions for flood risk reduction and disaster risk management are expected to stimulate the local economy through private investments in urban development and expansion of local businesses.
3321,"The expansion of Reflorestar PES will help leverage additional financing sources, by supporting studies and the development of strategies that could lead to the expansion of funding sources, including the private sector."
3322,"33 The respective populations are: Águia Branca (9,631); Ibiraçu (12,591); and João Neiva (16,722)."
3323,"34 The percentage of residents that are registered in the Cadastro Único in these municipalities are, respectively: 52 percent, 50 percent, and 34 percent."
3324,"35 Iconha (14,083) and Alfredo Chaves (14,670)."
3325," The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) D. Results Chain Activities Outputs Outcomes PDO High-Level Outcomes AGERH Institutional assessment completed Prepare AGERH institutional assessment Specialized equipment and training delivered SIGERH and CEPDEC capacities to Acquire and install specialized DRM equipment A1 Specialized Disaster Response Center (CERD) created manage water related risks Build CERD Specialized training targeted to SIGERH and CEPDEC strengthened Conduct capacity building of SIGERH and CEPDEC completed In case of an Eligible Crisis or Emergency, respond promptly and effectively to it State capacity to manage water Prepare WRM financial sustainability assessment State WRM financial sustainability assessment prepared security risks strengthened Develop and implement Incident Command System Management tool for command & control emergency - Implementation of water resources Update State WRM Plan response system developed​ WRM & DRM Instruments improved & A2 management instruments improved Develop and/or upgrade WRM instruments and State WRM Plan (PERH-ES) updated incorporating implemented - Digital operations command system tools extreme events risks aspects implemented Water use charge methodology developed​ - Land area under sustainable Water rights issuance procedures improved​ landscape management practices (CRI) Decision support system for issuance of water rights Activate decision support systems for water rights operational​ Prepare hydrological and hydrogeological studies Hydrological & hydrogeological studies completed​ Information systems strengthened and A3 Climate change Improve monitoring networks Hydrological and hydrogeological monitoring networks used for decision-making adaptation increased Implement Water Quality Laboratory improved​ State Water Quality Laboratory created A4 Flood and Drought Management Plans developed for selected river basins​ Develop flood and drought management plans and Flood Forecast & Alert systems strengthened & studies population at-risk prepared​ Non-structural measures to reduce Water security risks reduced in Strenghten flood forecast and alert systems PES schemes scaled-up​ with increased participation of water security risks implemented in targeted areas Mobilize at-risk population women (family farms run by women) among the targeted basins and municipalities - Itapemirim river basin forecast and Scale up PES schemes beneficiaries early warning system operational and Studies to reduce flood risks in targeted municipalities issuing reports developed - People benefitting from reduced water security risks, disaggregated by Inovative solutions for flood mitigation identified and gender Structural measures to reduce water Design flood mitigation studies and projects implemented in targeted areas security risks implemented in selected Implement flood risk reduction infrastructure No regret flood risks reduction works implemented in basins and municipalities selected municipalities ​  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) Critical assumptions include: • A1."
3326,Water use charges are approved by the State Water Resources Council and lead to increased revenues to finance SIGERH-ES institutions and non-structural and structural measures identified in the State and River Basin plans; • A2.
3327,"Increased water rights issuance and registration, improved information on water use, allowing better water allocation and control of abstractions, and reducing the risks of water deficits and droughts; • A3."
3328,Information used to help climate change cognizant decision making to reduce water security risks; and • A4.
3329,"Reducing water security risks and increasing the State’s capacity to manage them increases its adaptation to climate change since climate change principally impacts SES’ population, economy and environment through alterations to the hydrological cycle, namely increased water deficits (water demand exceeds availability) and extreme events (floods, landslides and droughts)."
3330,E. Rationale for Bank Involvement and Role of Partners 31.
3331,Rationale for Bank Involvement.
3332,"Over the past 30 years, the Bank has maintained a successful engagement with the State of Espírito Santo in the water sector, with projects and technical assistance in water supply and sanitation (WSS), coastal pollution management, and watershed conservation and restoration."
3333,"More recently, through the ongoing Bank-financed Espírito Santo Integrated Sustainable Water Management Project,36 the scope of the Bank water engagement has started to evolve to include, in addition to investments in sanitation and watershed restoration,37 some technical assistance to strengthen the State’s capacity to manage increasing water security risks, exacerbated by climate change."
3334,"With its deep level of engagement in the water sector in Espírito Santo and its global experience in WRM and disaster management, the Bank can play a unique role, through the proposed Project, in promoting a paradigm shift in addressing water security risks in the State, building the capacity to further move away from traditional sectoral and reactive approaches, to more integrated, proactive and innovative approaches based on risk management and nature-based solutions (see section F)."
3335,Role of Partners.
3336,"The World Bank is the only development partner supporting SES in the areas of water security and disaster management, and related climate adaptation."
3337,The World Wildlife Fund for Nature (WWF) and the Global Environment Fund (GEF) have been long-time partners to the Reflorestar Program and its PES program.
3338,F. Lessons Learned and Reflected in the Project Design 33.
3339,The following lessons learned on technical approaches and implementation arrangements have informed Project design.
3340,Adopting a proactive approach based on flood and drought risk management is critical to achieving technical and economic efficiency.
3341,The traditional approaches to both flood and drought 36 Espírito Santo Integrated Sustainable Water Management Project (P130682) approved in 2014 and scheduled to close in June 2024.
3342,37 Bank operations have contributed to improved sewerage collection and treatment in Espírito Santo.
3343,"Between 2010 and 2019, access increased from 39.9 to 55.9 percent, with the highest improvement in urban areas, where access rose from 46.7 to 62.8 percent."
3344," The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) management are reactive, based on crisis management, when measures are taken in emergency situations."
3345,"They are technically and economically inefficient when compared to proactive approaches based on risk management where measures are designed in advance with appropriate planning tools and stakeholder participation and where the question regularly arises as to what safety is available at what price, and how much of the remaining risk has to be accepted by society."
3346,"Lessons learned and international best practices considered in Project design include the European Union (EU) experience in implementing the EU Flood Directive38 and EU Drought Planning guidelines,39 as well as Brazil’s rich drought management experience in the Northeastern region.40 Project design also builds on the recommendations of the EPIC Innovative Governance for Flood and Drought Risk Management41 focusing on an integrated approach, with clear definition of roles and responsibilities of all institutions and sectors as well as their adequate coordination."
3347,Nature-based solutions and payment for Environmental Services (PES) should incorporate key lessons to improve their cost-effectiveness and sustainability.
3348,"Lessons learned from international experience and the Reflorestar program under the ongoing Espírito Santo Integrated Sustainable Water Management Project (P130682) have shown that PES can provide strong incentives for private land- owners to adopt nature-based solutions, such as reforestation or beneficial agro-environmental solutions that generate ecological services such as reduced water pollution and sediment loads, increased groundwater recharge and water infiltration, and reduced runoff velocity."
3349,"They also reveal that the following elements are key to ensure PES cost-effectiveness and sustainability: (i) identification of the specific needs of service users in the watersheds (in the ongoing project case, reducing sediment loads in Espírito Santo Water and Sanitation Company-CESAN's water sources), (ii) establishing what land uses in what areas can help generate the specific services needed by the water users, and (iii) ensuring appropriate implementation arrangements."
3350,"Following considerable experimentation, Reflorestar has settled on an approach in which implementation arrangements are sub-contracted to BANDES, a state public bank with considerable experience in working with landholders through its work with rural credit programs."
3351,This arrangement has both reduced implementation costs and allowed Reflorestar to considerably expand the area enrolled and will be continued under the proposed Project.
3352,Water resources and disaster risk management are multisectoral in nature and require multisectoral implementation arrangements ensuring adequate participation of all government institutions involved.
3353,"Lessons learned show that when project implementation requires the involvement and coordination of multiple institutions it is important to rely, as much as possible, on existing and institutionalized coordination mechanisms and apex agencies, and align implementation arrangements with the actual functions and responsibilities of existing institutions."
3354,"Moreover, the implementation capacity of the institutions involved should be strengthened based on the recommendations of a thorough and ongoing capacity assessment to be completed during Project implementation, which in this case includes the establishment of a dedicated project management unit within SEAMA, combined with staff training and technical assistance to the various institutions involved, including the support of a project 38 European Union Directive 2007/60/EC on the assessment and management of flood risks, which entered into force on :  39 The EU report on drought management plans was launched in 2007 as part of the Common Implementation Strategy of the Water Framework Directive:  40 It includes several knowledge products and tools supported by the World Bank, including the Drought Monitoring instrument (Monitor de Secas):  41 The EPIC Response is an integrated flood and drought approach to better manage hydro-climatic risks."
3355,The World Bank report was launched in 2021:   The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) management firm (see implementation arrangements).
3356,"Moreover, a strong operational manual, together with comprehensive project launch training, will be necessary to ensure that Project implementation roles and responsibilities are well understood among participating organizations."
3357,Design and build (D&B) contracts can also promote timely project implementation.
3358,"Design and build procurement has been used successfully in the execution of civil works under the ongoing operation (P130682) with reduced costs and project delivery time compared to other methods, provided contract management is strong."
3359,"Indeed, D&B contracts tend to: attract quality firms with proven capacity to tolerate risks; provide an incentive to the firm to resolve issues rapidly, and reduce the number of procurement packages overall, combining design studies and construction into one single contract."
3360,Participation of citizens in decision making processes related to water resources and disaster risk management is critical to ensure the effective implementation of WRM and DRM instruments.
3361,The participatory approach is an integral part of SIGERH-ES and SIEPDEC-ES and calls for informed communications strategies to ensure the consultative and decentralized character of both systems.
3362,"The availability of relevant information in accessible format for stakeholders should be accompanied by targeted campaigns to increase visibility of WRM and DRM processes and encourage participation of a wide segment of the target population – this helps ensure that the participants represent different interest groups and that traditionally excluded groups (including women, people with disabilities and others) have an active role in the process."
3363,"Local mobilization and outreach will also rely on strengthening the capacity of River Basin Committees, given that working with and strengthening existing institutional bodies has the potential to scale up and ensure sustainability of participatory processes."
3364,"Timely implementation depends on project readiness at the time of approval, which can be facilitated taking advantage of the ongoing project during the preparation phase."
3365,"The ongoing Espírito Santo Integrated Sustainable Water Management Project (P130682) is supporting the preparation of terms of reference (TORs), works feasibility studies and technical requirements; and carrying out an institutional assessment and technical studies, preparing the ground for project implementation."
3366,"It is also funding additional staffing to improve the capacity of implementing agencies for advancing preparatory activities, with the expectation of an overlap between the two operations."
3367,See Table A2.1 (Annex 2) summarizing the status of key preparatory activities and their estimated completion.
3368,IMPLEMENTATION ARRANGEMENTS A.
3369,Institutional and Implementation Arrangements 40.
3370,The Secretariat of Environment and Water Resources (SEAMA) will be responsible for the overall Project leadership and coordination through the establishment of the Project Management Unit (PMU).
3371,"It will carry out the coordination, supervision and reporting on Project activities and results; perform technical, fiduciary and administrative functions; as well as advise and support the four implementing agencies in fulfilling their Project responsibilities, in compliance with Project regulations and World Bank policies."
3372,"The PMU will comprise a core team including a Project coordinator, a financial management (FM) specialist, a procurement specialist, a M&E specialist, environment and social specialists, a legal specialist, an operational and administrative specialist, among others."
3373,SEAMA will represent the Borrower in any Project-related engagement with the World Bank.
3374,"The Project’s institutional arrangements have been formalized by decree enacted by the Borrower.42 See Annex 1 for 42 Decree Nº 5344-R, issued on ."
3375, The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) details.
3376,"AGERH, SEAMA, CEPDEC and DER-ES43 will be responsible for implementing Project activities under their purview via their specific Project Implementing Units (PIUs), as follows: i) AGERH for subcomponent 1.1 and component 3(ii);44 ii) CEPDEC for subcomponent 1.2; iii) SEAMA for subcomponent 2.1 and component 4; and iv) DER-ES for components 3(i) and 3(iii)."
3377,"AGERH, CEPDEC and SEAMA will share the implementation of subcomponent 2.2,45 which is expected to enhance their coordination and improve interinstitutional and cross-sectoral collaboration under the SIGERH-ES, resulting in a positive externality."
3378,"Component 5 activities will be implemented by SEAMA and CEPDEC, as further detailed in the Project Operations Manual (POM)."
3379,"Procurement of activities under components 1, 2 and 4 will be carried out by a Special Bidding Commission (SBC) established under SEAMA."
3380,DER-ES will be responsible for the procurement of activities under component 3.
3381,The implementing agencies will sign interagency technical cooperation agreements with SEAMA and will designate a focal point responsible for Project implementation and monitoring of progress.
3382,"Each PIU includes technical teams from the institutions and will be reinforced with support from a technical and operational consulting firm, as further detailed in the POM."
3383,See Annex 1.
3384,An external consulting firm will be contracted to provide support to the PMU and the PIUs in the implementation of the Project.
3385,"This firm is expected to provide technical and operational expertise and support in the following areas: (i) administrative and financial management support; (ii) implementation of the environmental and social framework (ESF); (iii) reviewing and updating designs and TORs for various Project activities and assisting in the preparation of documents related to the procurement cycle; and (iv) providing specialized individual consultants with specific technical expertise, as required."
3386,The Steering Committee (Comitê Gestor do Projeto) will be established and comprised of high- level representatives from the four Project implementing entities.
3387,It will be chaired by the State Secretariat of Economy and Planning (Secretaria de Economia e Planejamento - SEP).
3388,The Sub-secretariat of Fundraising under the SEP (Subsecretaria de Captação de Recursos – SUBCAP/SEP) will serve as its Executive Secretariat.
3389,"The Committee will provide strategic direction, guidance, and oversight for implementation; ensure inter-agency collaboration where needed; monitor progress; and recommend and take actions to resolve bottlenecks when necessary."
3390,Results Monitoring and Evaluation Arrangements 44.
3391,Progress towards achievement of the Project Development Objective will be assessed based on the PDO-level and intermediate results indicators.
3392,The Results Framework (RF) for this operation is presented in Section VII.
3393,The RF includes selected indicators used by the Borrower for the purposes of monitoring Project impacts.
3394,Data for most of the indicators can be gathered from existing systems.
3395,The PMU will consolidate the relevant data from the four implementing agencies and present the Bank with semi-annual progress reports that include data on Project execution and Project outputs and outcomes.
3396,43 See Table A1.1 in Annex 1 summarizing the agencies’ functional roles and responsibilities under each Project component.
3397,"44 AGERH will also implement the studies to identify more innovative integrated structural and non-structural solutions to reduce flood risks in the municipalities of Iconha and Alfredo Chaves, under Component 3."
3398,"45 AGERH will be responsible for nearly all activities under subcomponent 2.2, with the exception of (i) activities related to the warning systems, Civil Defense contingency plans, registration of residents in at-risk areas, and production and dissemination of communications materials, to be led by CEPDEC; and (ii) green/gray infrastructure interventions to be implemented under the Itapemirim river basin flood risk management plan, under SEAMA’s responsibility."
3399, The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) The World Bank team will conduct at least semi-annual implementation support missions to monitor progress towards achievement of results and agree on adjustments or corrective measures when necessary.
3400,Implementation progress will be documented in Aide Memoires and Implementation Status and Results (ISR) Reports.
3401,Monitoring and ensuring compliance with the Project´s ESF instruments will be performed by the PMU in coordination with the four implementing agencies.
3402,C. Sustainability 45.
3403,Participatory approach and adequate budgeting.
3404,"Project objectives are aligned with the state government’s strategic priorities, as well as those of the municipalities involved."
3405,The sustainability of investments supported by the Project relies on the state institutions’ capacity to work closely with the municipalities in preparation and during implementation of works.
3406,The responsibility for maintaining infrastructure investments belongs to the municipalities.
3407,The State will coordinate with municipalities to ensure that they incorporate it in their overall maintenance functions and budget prior to transferring the completed works.
3408,"Resilient integrated structural and non-structural solutions to flood, drought and WRM management."
3409,"The Project will promote a risk-based approach to water security and promote NBS, in combination with more traditional gray infrastructure, which tend to provide solutions that are more cost- effective to invest and operate, more robust to uncertainties, more resilient to risks in general and climate change in particular, making them more sustainable measures over time."
3410,PES sustainability.
3411,"Most sustainable land management practices and NBS supported by the Reflorestar program are expected to be beneficial for water security, biodiversity, climate adaptation and mitigation, but also in the farmers’ interest, so that they are expected to maintain them after the Project closes."
3412,"To ensure that this is the case, technical assistance will be provided to help farmers adopt practices that are best suited to their conditions and to promote their effective implementation."
3413,"Moreover, the State Fund for Water Resources (Fundágua) that was created in 2008, provides the State Water Resources Policy an instrument to secure and apply funds to improve management of water resources and the environment (including PES)."
3414,"These funds, which are executed by SEAMA, come from petroleum royalties and contribute to the long-term availability of resources to be applied to the PES programs, including the one to be supported by this Project."
3415,Sustainability of WRM improvements under SIGERH-ES.
3416,The Project will finance several activities that will be key to ensure the sustainability of WRM capacity improvements supported under the Project: the assessments of AGERH’s institutional capacity and of the SIGERH-ES financial system and implementation of key recommendations from those assessments.
3417,"Moreover, as a result of the Project, collection of revenues from water uses charges should start and increase over time, as the Project will support their design at river basin levels and will improve the effectiveness in the issuance of water rights which constitute the revenue base for these charges."
3418,The Water use charges is a key financial instrument for the implementation of the WRM plans and the functioning of key SIGERH-ES institutions.
3419,"These activities, in combination with Fundágua and the state budget, should improve the medium and long-term financial sustainability of the SIGERH-ES and the implementation of its seven policy instruments."
3420,Capacity building of government officials.
3421,"The sustainability of Project results beyond its closing will also be ensured through capacity building of government officials and specialists responsible for water resources and disaster risk management, in the innovative approaches that will be included by the Project."
3422,"This will be done through specialized training, on-the job training as well as study tours, and partnership  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) building."
3423,PROJECT APPRAISAL SUMMARY A.
3424,"Technical, Economic and Financial Analysis Technical analysis 50."
3425,The Project’s technical design is in line with international good practices in the sector (see lessons learned).
3426,The approaches followed and their justifications are explained below: 51.
3427,Selection of Project areas.
3428,The areas chosen to benefit from on the ground water security risk reduction interventions and piloting of innovative approaches were selected based on the State’s prioritization of flood and drought risks.
3429,"Namely, the priority areas center around five river basins located in the part of the State which have been identified as the most at risk for drought and the Itapemirim basin, and 5 municipalities which have been particularly affected by floods, and in the case of the municipalities, are in urgent need of risk reduction measures."
3430,Technical approach to flood and drought management.
3431,"The Project will support the SES in the process of moving from reactive, crisis approaches to flood and drought, to proactive risk management approaches, which requires ex ante design of measures with appropriate planning tools and stakeholder participation (see lessons learned)."
3432,"It will do so by financing within select high risk basins (the Itapemirim and the State’s Center-North hydrographic region), the preparation of participatory flood and drought plans that define measures necessary to reduce risks, considering prevention, protection and preparation."
3433,It will also strengthen flood monitoring and forecasting systems to allow for timely warning of flood conditions and activation of pre-defined measures.
3434,"Basin-scale, participatory and integrated water resources, flood and drought management combining both structural and non-structural measures."
3435,"Project design recognizes that, while structural measures, such as flood defense structures and large reservoirs, are important elements to address water- related risks, more emphasis should be given to nature-based solutions, such as watershed, flood plain and wetland restoration, which tend to be more efficient, sustainable and resilient solutions."
3436,"NBS take advantage of the storage effect of vegetation, soil and wetlands, including their contributions to groundwater recharge and run-off attenuation, which are important mitigating effects for flood and dry- spells."
3437,"In line with good practices, Project design considers the hydrographic basin (or-sub-basin) as the planning unit for water resources, flood and drought management, where coordinated water, land and related resources management actions should take place."
3438,"This approach is fundamental to avoid passing water management problems onto other users, municipalities or states located downstream or upstream."
3439,"As such, flood, drought and water resources management plans should be closely coordinated at the basin level."
3440,"Finally, public participation and strong inter-institutional coordination mechanisms are critical both to improve the quality and the implementation of decisions."
3441,"The proposed operation will finance basin- scale, participatory flood, drought and water resources management planning, combining both structural and non-structural measures, with special attention to the introduction of innovative nature-based solutions."
3442,"It will also strengthen the institutional framework for WRM and disaster risk management fostering strong coordination mechanisms between the two and other relevant institutions, at the municipal, state and federal levels."
3443,Project’s contribution to climate change adaptation.
3444,The Project contributes to climate change adaptation in two ways.
3445,"Firstly, the entire Project, whose objective is to increase the capacity to manage  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) water security risks and reduce those risks in selected areas, improves climate adaptation."
3446,"This is because climate change primarily impacts SES’ population, economy and environment, through increases in water security risks (see Context section)."
3447,"Secondly, the Project’s overall impact on climate adaptation through its objective, is enhanced through the design of many Project’s interventions that consider climate change."
3448,"For example, the State WRM plan, the flood and drought plans, and the design of structural measures to reduce flood risks will be developed factoring in climate change uncertainty, thereby increasing their climate resilience; the water information system will include climate information; staff training of public DRM and WRM institutions will cover climate change."
3449,Economic Analysis 55.
3450,The World Bank has been a long-term partner of Brazil in the water sector.
3451,"By addressing preparation to water related extreme events, and improvement of water resources and disaster risk management capacity, the Bank involvement is justified given its vast experience in addressing these water issues that ultimately bolsters water security."
3452,The lessons learned from past World Bank’s projects in the SES and other Brazilian States has strengthened water institutions and established a long history of engagement in capacity building and water infrastructure development.
3453,The cost-benefit approach was used to compare the economic costs and benefits with and without the Project.
3454,"If benefits surpass costs, the Project is economically viable."
3455,"The present value of expected net benefits was calculated, as well as the economic internal rate of return, and benefit-to-cost ratios."
3456,"The economic evaluation was completed with greenhouse gas (GHG) emissions estimates, a sensitivity analysis with various scenarios to measure the impact that changes in costs and benefits, and a qualitative description of potential ancillary economic impacts of the Project."
3457,"The economic analysis of the Project focused on three subcomponents: the Reflorestar program, the interventions in the Itapemirim basin and the urban and flood risk management interventions in three vulnerable municipalities."
3458,"The parameters used in the analysis include an exchange rate of R$5.15 per US$1, with a Project lifetime of 30 years, and standard conversion factor of 1.09 to transform financial to economic values.46 Finally, a discount rate of 10 percent was considered for estimating Net Present Values (NPVs)."
3459,GHG net emissions of the Project were estimated and added to the economic analysis using the Shadow Price of Carbon (SPC) to monetize GHG net emissions with a baseline year in 2022 with different SPCs.
3460,"A sensitivity analysis included the following scenarios that modified direct costs and benefits: (i) increasing Reflorestar direct benefits of reducing sedimentation and increments in avoided damages in Itapemirim’s locations, (ii) cost overruns of 50 percent during the lifetime of the Project for all components under economic evaluation, (iii) a decline in both costs and benefits that reduces the NPV to zero (breakeven point), and (iv) delays of Project’s implementation up to 10 years."
3461,"In addition, the sensitivity analysis incorporated a scenario of extra indirect benefits and costs."
3462,Indirect benefits included increases in farm income due to better environmental and agricultural practices with higher economic value due to Reflorestar.
3463,The estimation of costs comprised the investment in infrastructure works for the three subcomponents and the recurrent operation and maintenance (O&M) costs from these interventions .
3464,Administrative and transaction costs of interventions were added based on data availability of each component.
3465,"In the case of Reflorestar, an opportunity cost per hectare annually is proxied at R$11,879 46The standard conversion factor is the ratio or economic price value of all goods in the economy at their border price equivalent values to their domestic market price value."
3466,Usually it is also approximated with the inverse shadow exchange rate factor (SERF) as follows: 1+(1/exchange rate)/2)~=1.09.
3467," The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) (US$2,306) spent for alternatives of productive activities and environmental outcomes (see Annex 3 for detailed description)."
3468,The economic rate of return of the Project is 14.9 percent for the entire lifetime of the Project.
3469,"The Net Present Value (NPV) of all components included in the economic evaluation is US$75.8 million, with benefits reaching US$234.3 million, and total costs reaching US$158.5 million at present values."
3470,See Annex 3 for more details.
3471,Climate Co-Benefits.
3472,"The Project has significant climate benefits, both on the adaptation and mitigation fronts."
3473,"By reducing water security risks, the Project is generating significant climate adaptation benefits considering that, climate change predominantly impacts water security risks."
3474,These benefits are already accounted for in the Project’s economic analysis.
3475,"In addition to those adaptation benefits, the Project, through its PES program, will provide mitigation co-benefits, by increasing carbon sequestration through increased forested area and farming practices."
3476,"Expected carbon sequestration is estimated at 8,682 tCO2-eq, generating economic benefits ranging from US$4.4 million to US$9.0 million, depending on the shadow price of carbon considered."
3477,"This is based on a carbon sequestration rate of 3.45 tCO2-eq per ha for reforestation program in Brazil as a result of recent research studies, considering that the Project would reforest 2,715 ha (or 70 percent of the project area to be converted into sustainable land management practices)."
3478,"A climate and disaster risk screening has been undertaken for the Project that shows that while the exposure of the Project location and impacts on the Project’s physical infrastructure and assets are High, the operation has a significant focus on capacity enhancement, basin-wide integrated flood planning and drought preparedness, and disaster risk awareness raising."
3479,"Combined, these features will reduce the anticipated risk from climate and geophysical hazards, thus leading to a Moderate outcome rating (Risk to the outcome/service delivery of the project)."
3480,"The Project is essentially designed to build the state’s resilience and adapt to climate change, with important elements included within the Project scope that will contribute to achieving high climate co-benefits."
3481,"Further to those adaptation benefits, the Project also includes mitigation measures such as: enhanced carbon sinks from interventions in Component 2; a clear link between addressing flood and drought risks (in Components 1 and 3) and avoiding further soil erosion and carbon loss; and potential displacing of GHG emissions from materials by implementing pilots with a green infrastructure approach."
3482,Project impact on Borrower’s fiscal situation.
3483,"The impact of Project investments on the Borrower’s fiscal situation is expected to be very small, considering the excellent fiscal situation of the SES, which can easily absorb the additional investment and recurrent costs, but also because some of those costs are expected to be recovered through reduced expenses associated to avoided flood and drought damages and compensations, lower potable water treatment costs and increased life of water reservoirs."
3484,Fiduciary Financial Management 63.
3485,A Financial Management Assessment (FMA) was carried out in accordance with the Investment Project Financing and Bank Directive “Investment Project Financing and the Financial Management in Bank Financed Operations and Other Operational Matters issued and effective on ”.
3486,"It concludes that: (i) the financial management (FM) arrangements for the proposed Project are considered  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) adequate; (ii) the flow of funds, disbursements, monitoring, auditing, and supervision arrangements have been designed to respond to the Project’s implementation arrangements; and (iii) the residual FM risk associated with the Project is rated Moderate."
3487,There are no FM-related conditions for Effectiveness.
3488,"The proposed FM institutional arrangements respond to the Project’s multisectoral nature, while taking into consideration lessons learned from the ongoing Espírito Santo Integrated Sustainable Water Management Project (P130682)."
3489,The PMU will undertake the primary fiduciary responsibilities for the Project.
3490,"These responsibilities include: (i) preparing and obtaining approval of Project FM arrangements; (ii) coordinating and supervising Project implementation; (iii) preparing and submitting Project interim unaudited financial reports (IFRs) to the Bank; (iv) preparing and providing all financial documentation and Project reports requested by external auditors and Bank staff; and (v) preparing, updating, and ensuring that the POM is observed."
3491,"The FMA identified the following risks to the achievement of the Project Development Objectives: (i) the Project includes four implementing entities; (ii) the IFRs will run through a different system (“SAFF – Sistema de Acompanhamento Físico Financeiro”, or Solution for Physical and Financial Project Management system), since the State FM information system (the Integrated System of Public Financial Management of Espírito Santo – SIGEFES) does not account for cash basis nor allows the transactions to be booked by category, component and subcomponent; and (iii) the current workload posed by the ongoing project."
3492,"The above risks’ mitigation measures are: (i) the PMU will need to work closely with the State Secretariat of Finance (Secretaria da Fazenda - SEFAZ) and the executing partners to ensure the coordination is working as planned; (ii) the SAFF system will be contracted for this Project, so the Project’s transactions can be booked per category, component and subcomponent, and the automated IFRs can be generated through the system; and (iii) the PMU will hire additional professionals, especially the dedicated FM Specialist."
3493,Procurement 67.
3494,"Procurement will be conducted per the World Bank’s “Procurement Regulations for IPF Borrowers”, issued in November 2020, for the supply of goods, works, non-consulting and consulting services under the Project."
3495,"Procurement of activities under components 1, 2, 3(ii) and 4 will be carried out by a Special Bidding Commission (SBC) established under SEAMA."
3496,DER-ES will be responsible for the procurement of activities under component 3(i) and component 3(iii).
3497,"AGERH, CEPDEC, SEAMA and DER- ES are responsible for the technical aspects of their respective activities and for managing the contracts."
3498,A procurement assessment was carried out (May/June 2022) to appraise the capacity of SEAMA and DER-ES to implement procurement actions and to review the organizational structure underlying Project implementation and the interaction between the PMU and Project benefiting institutions.
3499,"DER-ES has a well-functioning procurement team, with experience in procuring goods and services, but no previous experience with World Bank regulations."
3500,"Civil works have been handled by well-qualified procurement staff and technical assistants, however without experience with Bank procedures."
3501,"SEAMA has an experienced procurement team in terms of Bank Group’s procurement rules, since the Secretariat has already implemented components in the ongoing Project (P130682), specially goods and non- consultant services."
3502,Project agencies have some experience in selecting consulting services.
3503,Mitigation measures to ensure a satisfactory arrangement are provided in table A1.5 under Annex 1.
3504,"The Borrower has developed a Project Procurement Strategy for Development (PPSD) , and  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) based on the PPSD, a Procurement Plan has been prepared by the Borrower and approved by the Bank, covering the first 18 months of Project implementation."
3505,The PMU will specify appropriate roles and responsibilities of the technical and procurement specialists.
3506,PMU staff will be trained in Bank procurement procedures once they are selected.
3507,The overall conclusions of the procurement assessment are that: (i) the procurement arrangements for the proposed Project are considered adequate; (ii) the procurement plan has been prepared and approved by the Bank; (iii) the PMU and the SBCs are structured in a way to respond to the Project’s implementation arrangements; and (iv) the residual procurement risk associated with the Project is rated as Moderate.
3508,Additional information on fiduciary risks and mitigation measures is detailed in Annex 1.
3509,.C.
3510,Legal Operational Policies .
3511,Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No .
3512,D. Environmental and Social Environment 72.
3513,The Environmental risk rating of the Project is Substantial.
3514,"The Project aims to increase water security and resilience to extreme events, thus significant positive environmental impacts are expected with the recovery of forest cover, the conversion to sustainable land use, the implementation of NBS, and improved water security."
3515,"The adverse impacts are mainly related to the civil works to minimize floods and landslides, and increase water security to climate-related extreme events in selected basins and municipalities of the State."
3516,The environmental risk of Components 1 and 2 is considered moderate.
3517,"Their interventions will consist of civil works to be carried out on urban land, partially anthropized, and implementation of green infrastructure, and water and sediment retention devices in rural areas, respectively."
3518,"On the other hand, the interventions planned in urban areas (Component 3) are of substantial risk."
3519,"Even though to date, the typology of these works is well defined, and their location will majorly consist of urban anthropized areas, modified habitats, which are fragmented and with the presence of nonnative/exotic species, the scale and magnitude of their related impacts still encompass some level of uncertainty."
3520,"Thus, as a precautionary approach, the environmental risk was considered substantial."
3521,Interventions in rural areas will occur in open and degraded farmlands.
3522,"The impacts foreseen for these works are common to this type of intervention, local, temporary, reversible, site specific, and with low probability of causing significant/permanent negative environmental effects."
3523,The measures necessary to mitigate these impacts are widely known and readily available to be carried out by the implementing agencies.
3524,There are no significant contextual risks that imply an additional increase or exacerbation of the potential impacts foreseen in the Project.
3525,The Project consists of a series of subprojects for which environmental and social risks cannot be specifically determined until their details have been identified.
3526,"In consequence, the Borrower has prepared an Environmental and Social Management Framework (ESMF) as the main instrument of Environmental & Social (E&S) assessment of the Project."
3527,The ESMF was publicly disclosed on a dedicated  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) website.47 It was consulted through this online channel from June 15 to .
3528,"In addition, a virtual meeting was held on ."
3529,"The ESMF defines the principles, rules, guidelines and procedures to assess the E&S risks and impacts of the Program, considering its components, subcomponents and activities, whether the latter are already well defined in terms of scope and location of intervention or still lacking definitions that will be reached in the future."
3530,"The ESMF presents measures and plans to reduce, mitigate, and/or neutralize risks and adverse impacts, information on the agencies or entities responsible for managing the program's risks and impacts, including their institutional capacity for such management."
3531,"As per the ESMF, the Borrower will be required to develop (as necessary) a set of management plans/programs to address the main E&S risks and impacts of the project implementation."
3532,The ESMF was disclosed on the Bank’s website on .
3533,"In order to address the environmental and social risks of the Project in a manner consistent with the relevant Environmental and Social Standards (ESSs), an Environmental and Social Commitment Plan (ESCP) was developed and agreed jointly by the Bank’s and Borrower’s staff, and incorporates several commitments related to the compliance with the relevant ESSs, monitoring and reporting, capacity building and institutional strengthening.48 Social 76."
3534,The social risk rating is Moderate.
3535,"The main adverse social impacts are related to land acquisition, physical and economic displacement on a temporary or permanent basis for the construction of flood reduction infrastructures in urban areas as well as, at least potentially, for the green and gray interventions envisaged in the context of the flood risk management plan for the Itapemirim river basin."
3536,These impacts are expected to be of small magnitude and the Borrower has developed its capacity to carry out involuntary resettlement action plans following the similar requirements of OP 4.12 as part of the ongoing operation in the state.
3537,A Resettlement Policy Framework (RPF) has been prepared and consulted.
3538,It is being revised to incorporate relevant feedback received during consultations and its final version will be disclosed in the Project’s dedicated website within 30 days of the Project’s date of effectiveness as stated in the Project’s ESCP.
3539,Resettlement and land acquisition costs will be financed with counterpart funds.
3540,The ESMF includes an assessment of social risks and impacts of all activities that will be supported by the Project and identifies a few adverse social impacts related to the construction stage of civil works.
3541,"They refer to: an increased demand on public services available at the local level and temporary interferences in its provision; increased traffic and road safety risks due to the circulation of heavy machinery; temporary disturbances in the everyday life of neighboring communities (noise, dust, among others); increased exposure to health risks associated with synanthropic fauna; the exposure of workers and pedestrians to accidents and health and safety risks."
3542,"Since the works for the construction of flood reducing infrastructure will involve excavations and movement of earth, there is also a moderate risk of encountering unknown cultural heritage and a chance finds procedure has been envisaged under the ESMF."
3543,"These risks and impacts are predictable and expected to be temporary and reversible, low in magnitude, site-specific, with low probability of serious adverse effects to human health (as routine safety precautions are expected to be sufficient to prevent accidents) and can be easily mitigated in a predictable 47  48 The ESCP was disclosed on the Bank’s website on ."
3544, The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) manner.
3545,"Although some of the envisaged small civil works would take place in rural areas, they are not expected to increase risks ordinarily related with the influx of workers on rural communities, because high volumes of labor influx are not anticipated, the works would not occur in remote and hard to supervise areas, or in places defined by pre-existing social conflicts or tensions or by the prevalence of gender-based violence, child and/or forced labor, or in a context of weak law enforcement."
3546,"Indigenous Peoples possessing the four characteristics set in ESS 7 are not present in the areas of physical interventions (Components 2 and 3), which have been selected due to their high exposure and vulnerability to natural disasters (droughts and floods)."
3547,"Nevertheless, the Project supports a technical assistance activity that will be relevant for all State territory: updating of the State Water Resources Plan."
3548,"In this context, it will be important to ensure that the Terms of Reference of this specific consultancy is drafted so that its final products are consistent with the principles and requirements of ESS 7 as included in the Project’s ESCP."
3549,"Nevertheless, a stand-alone Indigenous Peoples Plan is not deemed to be the appropriate instrument for social risk management."
3550,It is worth noting that Indigenous Peoples leaderships and representatives of FUNAI (the National Indian Foundation) have played active roles in the Water Basin Committee since its inception in 2009 as required by State Decree 2376-R/2009 that created the North-Central Coast Water Basin Committee (which encompasses the area of the Aracruz municipality and the basins of the Piraquê-Açu and Piraquê-Mirim rivers).
3551,"Therefore, Indigenous Peoples participation in water resources management is already embedded in the Borrower’s institutional system."
3552,"The Borrower has prepared a Stakeholder Engagement Plan (SEP), that has been publicly consulted and revised to incorporate relevant feedback received during consultations .49 The SEP mapped key stakeholders and identified that Project activities have the potential of benefiting disadvantaged and vulnerable social groups (poor urban dwellers in at-risk areas, quilombola communities,50 artisanal fishery communities and small land holders who are more vulnerable to and less able to cope with the adverse impacts of extreme climate events and natural disasters, notably women, children, the elderly and the people with disabilities among them)."
3553,"The SEP establishes approaches and methodologies for disclosing Project information to all key stakeholders – including these vulnerable groups that need to have access to relevant information on the Project, easy access to its mechanism for raising and facilitating resolution of concerns and grievances, and fair access to Project benefits."
3554,"The SEP also describes the Project specific Grievance Mechanism, whose functionalities address all the requirements set in ESS 10 and will be operated by SEAMA."
3555,"The ESMF also emphasizes potentially adverse downstream effects of some technical activities envisaged under Subcomponent 1.1 – namely, updating of the State Water Resources Plan (PERH/ES) and the studies aiming at financial sustainability for water resources management – because they may have implications on the collection of water use fees with potentially adverse distributive impacts in detriment of small family farmers."
3556,"This risk is minimized by the fact that the existing legislation (State Law 10,179/2014) prohibits the collection of these fees from family farmers and traditional communities."
3557,Other Technical Assistance activities are not expected to have any adverse social effects downstream and it is worth highlighting that the effects of downstream activities are outside the scope of this Project.
3558,The Project provides a few entry points to promote gender equity.
3559,The social impact 49The SEP has been disclosed on the Bank’s website on .
3560,"50Quilombola communities are legally defined as ethnic-racial groups (according to self-determination criteria), with their own historical trajectory, endowed with specific territorial relations and a presumption of African ancestry related to the resistance to historical oppression suffered during the times of slavery in Brazil (Decree 4,887/2003, art."
3561,2).
3562," The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) assessment adopted a gender sensitive lens and identified relevant gender gaps still present in the State that can lead to disproportionate impacts of natural disasters on the well-being of women and female- headed households caused by water security risks as well as their negligible participation so far in benefits provided by the Payment for Environmental Services (Reflorestar Program), stemming from imbalances in access to assets, coping and responsive capacities, and voice and representation in decision making arenas."
3563,"Between 2013-2019, the share of women-headed family farms among Reflorestar beneficiaries accounted for just 0.79 percent."
3564,"However, there are 13.4 percent of family farms in the state of Espírito Santo that are headed by women."
3565,"Since 2021, the Program Implementing Unit has made efforts towards increasing women’s participation in the program achieving 30 percent of women-headed family farmers beneficiaries."
3566,"Moreover, under component 2.1, the proposed operation aims to further increase the share of women beneficiaries to 40 percent; this increase will be monitored by an indicator in the Results Framework."
3567,"To this end, the project will include activities to identify the drivers of exclusion of women family farmers from PES benefits and land tenure, communication strategies and a participatory strategy, among others."
3568,"(See Annex 4 – Gender Action Plan-GAP, for full details)."
3569,"The GAP focuses on (i) increasing the participation of women (family farms run by women) among the beneficiaries of the Reflorestar Program to reduce gender gaps in income, voice and agency; and (ii) increasing the participation of women in DRM trainings to reduce gender gaps in access to information, participation, voice and agency by preparing women to respond to situations of risks and disasters , with two corresponding indicators in the Results Framework."
3570,"Actions will also result in improved information and communication systems aimed at increasing awareness about the gendered nature of these two areas as well as on ecosystem services, and evidence-based decision making processes."
3571,Citizen engagement.
3572,The Project will also aim to enhance citizen engagement in decision making processes related to water resources and disaster risk management.
3573,"Stakeholder engagement is a core element in water resources, engaging various entities in the forums provided for in the Policy: the State Council of Water Resources (CERH), the River Basin Committees (RBCs) and the Forum of River Basin Councils (FCCBH)."
3574,"Stakeholder engagement is also a cornerstone of the State’s disaster risk management regulatory framework, which relies on Municipal Committees of Civil Defense and Protection (COMPDEC) and Community Civil Defense Nuclei (NUDEC) – both instances comprise representatives of governmental agencies at the state and municipal level as well as civil society organizations and volunteer citizens."
3575,"Project activities (particularly under Component 1) will contribute to the institutional strengthening of these existing instances of citizen engagement in the implementation of public policies, paying particular attention to improvements in social communication, transparency and civil society engagement, with an emphasis on increasing opportunities for female representation and ensuring the participation of disadvantaged and vulnerable groups that may be more likely to be adversely affected by water security and disaster risks and Project impacts and/or more limited than others in their ability to take advantage of Project benefits."
3576,Citizen/stakeholder engagement will be monitored through three indicators included in the Results Framework.
3577,V. GRIEVANCE REDRESS SERVICES 83.
3578,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).
3579,The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns.
3580,Project affected communities and individuals may  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) submit their complaint to the Bank’s independent Accountability Mechanism (AM).
3581,"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."
3582,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.
3583,"For information on how to submit complaints to the Bank’s Grievance Redress Service (GRS), please visit "
3584,"For information on how to submit complaints to the Bank’s Accountability Mechanism, please visit "
3585,KEY RISKS .
3586,The overall risk to achieving Project Development Objectives is assessed as Moderate.
3587,"The Environmental and Social risk rating is Substantial considering the substantial Environmental risk due to potential adverse effects from the civil works under Component 3 – such as increase in traffic volume, interference in the local road system, generation of solid waste and wastewater, loss of vegetation cover, and increase in noise and dust levels – whose scale and magnitude still encompass some level of uncertainty."
3588,"However, as explained in Section D, the measures necessary to mitigate the impacts are widely known and readily available to be carried out by the implementing agencies."
3589,"They will include, among others, solid waste and wastewater management, dust and noise control and monitoring, erosion control, emergency preparedness and response, forest clearing procedures, inclusion of Environmental & Social requirements within bidding documents and contracts, capacity building and institutional strengthening."
3590,There are no significant contextual risks that imply an additional increase or exacerbation of the potential impacts foreseen in the Project.
3591,"Considering the residual risks after the application of mitigation measures, all other individual risks are Moderate."
3592, The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) VII.
3593,"RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY: Brazil Brazil: Espirito Santo Water Security Management Project Project Development Objectives(s) (i) to strengthen the Borrower’s capacity to manage water security risks in a changing climate; (ii) to reduce those risks in selected areas of the Borrower’s territory; and (iii) in case of an Eligible Crisis or Emergency, respond promptly and effectively to it."
3594,"Project Development Objective Indicators RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 Strengthen the Borrower's capacity to manage water security risks in a changing climate a) 1,500 decisions on water permits a) 50% increase in water rights decisions a) 100% increase in water rights decisions assessed per year based on few criteria and per year."
3595,per year.
3596,information; b) Updated PERH submitted to the CERH- b) Updated PERH approved by the CERH- b) PERH not fully operational and lacking ES.
3597,"PDO 1: Water resources management instruments focus on extreme events related aspects; improved (Text) c) 1,000 accesses to the system, including c) 2,000 accesses to the system, including c) Information system with low availability 50% of water rights analyses."
3598,100% of water rights analyses.
3599,to the public and not used to support water rights decision-making.
3600,"PDO 2: Digital operations command system No system System developed System implemented implemented (Text) Land area under sustainable landscape 0.00 2,100.00 3,000.00  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 management practices (CRI, Hectare(Ha)) Reduce water security risks in selected areas of the Borrower’s territory PDO 4: Itapemirim river basin forecast and early Simplified system in operation, with few System in operation and issuing monthly System in operation and issuing weekly warning system operational and issuing reports information and not issuing reports."
3601,"(Text) PDO 5: People benefitting from reduced water 0.00 100,000.00 security risks (Number) People benefitting from reduced water security 0.00 0.00 48,000.00 risks, of which female (Number) PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 1-Building the Borrower’s Capacity for Water Security in a Changing Climate 1.1) Reduction in the average time for issuing water rights for irrigation using surface water 60 days 15% reduction 25% reduction (Text) 1.2) Water use charges proposals submitted to the 0.00 1.00 13.00 River Basin Committees (Number) 1.3) Commitment agreements signed between socioeconomic sectors and SIGERH-ES institutions 0.00 3.00 5.00 to implement actions/programs agreed on the PERH-ES (Number) 1.4) Technical staff and key SIGERH-ES and Civil Defense system stakeholders trained in water 0.00 169.00 350.00 resources and disaster risk management and  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 disaster response (Number) 1.5) Increase in the participation of women in the annual training courses offered by CEPDEC to municipal civil defense and protection committees 29.00 35.00 40.00 (COMPDEC) and Community Civil Defense Centers (NUDEC) (Percentage) 2-Demonstrating Climate-Smart Integrated Water Security Risk Reduction Approaches in Selected Basins 2.1) Water retention structures installed through 0.00 840.00 1,680.00 the Reflorestar Program (Number) 2.2) Properties supported with projects for soil 0.00 2,100.00 2,800.00 and water conservation practices (Number) 2.3) Priority land area reforested and/or implementing sustainable land use practices 0.00 630.00 900.00 through Reflorestar Program (Hectare(Ha)) 2.4) Beneficiaries satisfied with the Reflorestar 0.00 70.00 90.00 Program (Percentage) 2.5) Increase in the participation of women (women-headed family farms) among the 30.00 35.00 40.00 beneficiaries of the Reflorestar PES Program (Percentage) 2.6) People benefitting from measures to mitigate 522,932 as the total population living in the 79,524 as the population living in at-risk 0.00 Itapemirim river basin according to the the impacts of floods (Text) areas in the Itapemirim river basin."
3602,PERH-ES.
3603,"7) People benefitting from drought preparedness measures identified in the drought 0.00 0.00 591,807.00 preparedness plans (Number) 3-Reducing Flood Risk in Targeted Municipalities 3.1) Area under reduced flooding risk 0.00 654.32 (Hectare(Ha)) 3.2) Area mapped for flood risk reduction 0.00 0.00 320.75  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 (Hectare(Ha)) 4- Project Management 4.1) Participants satisfied with the events organized by the Project in which they take part 0.00 70.00 70.00 (Percentage) 4.2) GRM: the rate of complaints related with the Project that are properly and timely responded 0.00 70.00 90.00 (Percentage) IO Table SPACE UL Table SPACE Monitoring & Evaluation Plan: PDO Indicators Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection a) The baseline considers the online application system for irrigation processes between 2020 and 2022."
3604,"The indicator Six-monthly measures the increase in Six-monthly progress AGERH (Subcomponent PDO 1: Water resources management Bi-annual progress the number of water rights reports 1.1) instruments improved reports decisions, considering the revised analysis criteria, improved information and the use of a decision support system, comparing the amount of processes  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) analyzed in June 2022 (baseline), during Project implementation and at the end of the Project."
3605,"b) State Water Resources Plan (PERH-ES) updated, incorporating aspects related to extreme events risks, submitted by AGERH and approved by CERH-ES, aiming at making it more operational: well-identified water resource management problems, measures to address problems identified and implemented."
3606,"Together with the Plan, AGERH will also forward to the CERH-ES the signed commitment agreements between the socioeconomic user sectors and SIGERH/ES institutions, aiming to improve the Plan's implementation capacity."
3607,"Throughout the process, AGERH will coordinate with the Council to facilitate the approval process."
3608,"c) Water Resources  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) Information System operational, including improved and publicly available information used for decision-making in the face of different climate scenarios."
3609,Baseline: no system in place results in the information being transmitted via Whatsapp or in physical format; less agility and difficulty in effectively documenting incidents.
3610,"The indicator measures the use of the system, operating in digital format and Six-monthly interacting on a web-based Six-monthly progress CEPDEC PDO 2: Digital operations command Bi-annual progress platform in the case of reports (subcomponent 1.2) system implemented reports highly complex events."
3611,"It allows integration of efforts and better coordination of agencies working towards the common goal of stabilizing critical situations and protecting lives, property and the environment."
3612,"More effective response, greater control over the execution of tasks, better  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) management, also providing greater effectiveness in documenting disasters."
3613,"Implemented system means tests carried out, knowledge transferred to future users (training) and system established by means of an internal ordinance (portaria)."
3614,"The indicator measures, in Definition: Areas in ha hectares, the land area for reforested and/or which new and/or improved implementing sustainable landscape sustainable land use management practices have practices through the been introduced."
3615,Land is the Reflorestar Program.
3616,"terrestrial biologically The indicator productive system demonstrates the comprising soil, vegetation, amount of degraded Six-monthly and the associated Bi-annual."
3617,hectares that can be SEAMA (Subcomponent Land area under sustainable landscape progress ecological and hydrological converted into 2.1) management practices reports processes; Adoption refers sustainable practices to change of practice or and that change in the use of a present conditions to technology promoted or be demonstrated introduced by the project; within the Project's Sustainable landscape timeline.
3618,"management (SLM) Key premises: the PES practices refers to a contracts initiated in combination of at least two years 1 and 2 of the technologies and Project are able to be  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) approaches to increase land fully concluded within quality and restore the Project degraded lands for example, implementation period, agronomic, vegetative, whereas contracts structural, and management started in years 3 and, measures that, applied as a mainly, in year 4, will combination, increase the hardly have enough connectivity between time for the forest protected areas, forest land, restoration process to rangeland, and agriculture be considered land."
3619,"successful, since this can take 3 to 5 years on average."
3620,"Although the Project is expected to support overall the restoration of approximately 5,600 hectares, it is expected that at least 3,000 ha will be demonstrable within the Project period."
3621,The detailed methodology is presented in the Project Operations Manual.
3622,"The indicator measures the PDO 4: Itapemirim river basin forecast strengthening of disaster Six-monthly Six-monthly progress AGERH (Subcomponent Bi-annual and early warning system operational and risk management capacities, reports reports."
3623,"2) issuing reports including the forecast and information of the following  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) parameters: level and discharge rate (outflow) of rivers (current, forecast and discharge rate/permanence curve), flood maps, and population affected by the observed level at that point in time, meteorological data (current and projection of climatological scenarios), with information periodically published to the public."
3624,The indicator measures the population benefited by the implementation of structural and non- structural measures to reduce the risk to water security in the selected Six-monthly areas.
3625,"The inhabitants of the Six-monthly progress PDO 5: People benefitting from reduced Bi-annual progress DER-ES (Component 3) municipalities of João Neiva reports water security risks reports (16,774 in total, of which 8,486 are women); Ibiraçú (12,705, of which 6,413 women); and Aguia Branca (9,621, of which 4,667 are women) will benefit from already identified works to reduce the risk of flooding."
3626," The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) The inhabitants of the municipalities of Iconha (14,083, of which 6,876 women) and Alfredo Chaves (14,670, of which 7,203 women) will benefit from the mapping of flood risk areas and the implementation of structural and non- structural measures to be prioritized for implementation."
3627,"Finally, inhabitants of at least two basins that will have drought preparedness actions planned (subcomponent 2.2) will benefit from the planning and implementation of selected activities."
3628,"The indicator measures the population benefited by the implementation of structural and non- Six-monthly structural measures to Six-monthly progress People benefitting from reduced Bi-annual progress DER-ES (Component 3) reduce the risk to water reports water security risks, of which female reports security in the selected areas."
3629,"The inhabitants of the municipalities of João Neiva (16,774 in total, of which 8,486 are women); Ibiraçú  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) (12,705, of which 6,413 women); and Aguia Branca (9,621, of which 4,667 are women) will benefit from already identified works to reduce the risk of flooding."
3630,"The inhabitants of the municipalities of Iconha (14,083, of which 6,876 women) and Alfredo Chaves (14,670, of which 7,203 women) will benefit from the mapping of flood risk areas and the implementation of structural and non- structural measures to be prioritized and implemented according to the available time and resources."
3631,"Finally, inhabitants of at least two basins that are the focus of the planning and implementation of preparedness actions for droughts (subcomponent 2.2) will benefit from the selected plans and actions."
3632,"Estimated population in the River Basins of Santa Maria do Rio Doce (34,600), Santa  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) Joana (32,866), Pontões e Lagoas do Rio Doce (396,324), Barra Seca e Foz do Rio Doce (74,515) and the municipality of Sao Roque do Canaa (12,510)."
3633,"Sources: www.agerh.es.gov.br, www.gov.br/ana/pt- br/assuntos/gestao-das- aguas/fortalecimento-dos- entes-do-singreh/comites- de-bacia- hidrografica/comites- estaduais/es."
3634,ME PDO Table SPACE Monitoring & Evaluation Plan: Intermediate Results Indicators Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Measurement of the reduction in the average total time for issuing water rights for irrigation with Six-monthly 1.1) Reduction in the average time for surface abstraction Six-monthly progress AGERH (Subcomponent Bi-annual progress issuing water rights for irrigation using (counting from the request reports 1.1) reports surface water to the decision on the right).
3635,"The percentage will be calculated in relation to the average time for issuance on June/15/2022,  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) considering the results of the water rights improvement study and the use of a decision support system."
3636,"AGERH will submit proposals for water use charges to the River Basin Committees, following coordination and discussions with water user Six-monthly sectors, civil society and Six-monthly progress AGERH (Subcomponent 1.2) Water use charges proposals Bi-annual progress public authorities on the reports 1.1) submitted to the River Basin Committees reports financial sustainability of the water resources management and applicable parameters, as well as on the importance of the water use charges for improving WRM in the State."
3637,Commitment agreements signed during and after the update of the State Water 1.3) Commitment agreements signed Resources Plan (PERH-ES) to Six-monthly AGERH (Subcomponent between socioeconomic sectors and implement action(s) under Bi-annual Six-monthly reports reports 1.1) SIGERH-ES institutions to implement the responsibility/interest of actions/programs agreed on the PERH-ES the socioeconomic sectors and the SIGERH-ES institutions.
3638,"4) Technical staff and key SIGERH-ES Technical staff and other Bi-annual Six-monthly Six-monthly progress AGERH and CEPDEC and Civil Defense system stakeholders key actors trained through progress reports (Subcomponents 1.1 and  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) (among others) participation trained in water resources and disaster reports 1.2) risk management and disaster response in the preparation of Drought and Flood Risk Plans; technical courses in areas related to water resource, disaster risk management and disaster response, systems training, participation in workshops, and technical visits."
3639,"The intermediate target considers the training of 50% of AGERH employees, members of River Basin Committees and CERH; and the final target corresponds to 80% of them."
3640,"The total staff of AGERH is 44, the total staff of Committees is 289 and the total staff of CERH is 60."
3641,"In addition, it also includes 20 staff of SEAMA and SEAG; and 20 CEPDEC civil servants."
3642,The indicator will measure 1.5) Increase in the participation of the share of women women in the annual training courses participating in the annual Six-monthly Six-monthly progress CEPDEC (Subcomponent offered by CEPDEC to municipal civil training courses offered by Bi-annual progress reports 1.2) defense and protection committees CEPDEC to municipal civil reports (COMPDEC) and Community Civil Defense defense and protection Centers (NUDEC) committees (COMPDEC) and Community Civil Defense  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) Centers (NUDEC) with a target to increase at least 10% the participation of women in the total number of course participants.
3643,"Of the 10 DRM courses offered by CEPDEC in 2021 to municipalities across the State, female participation accounted for only 29 percent of the 1,399 participants."
3644,The indicator measures the number of water retention structures that will be installed in the rural properties.
3645,"It has been calculated taking into account the universe of rural properties that joined Reflorestar in the previous Six-monthly Six-monthly progress SEAMA-Reflorestar 2.1) Water retention structures installed year, of which at least 60% Bi-annual progress reports (Subcomponent 2.1) through the Reflorestar Program will receive support to reports implement at least one physical intervention in the soil, which may be mini water detention ponds, soil built dry boxes or similar (barraginha, couxinho or caixa seca)."
3646,"This final determination on the type and number of interventions  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) to be implemented in each property will rely on knowledge of the characteristics of each rural property, technical viability and the expression of interest by the property's owner."
3647,This indicator measures the number of PES contracts signed.
3648,It allows assessing whether the implementation of the component is creating the necessary conditions for the Six-monthly Six-monthly progress SEAMA (Subcomponent 2.2) Properties supported with projects other indicators to be Bi-annual progress reports 2.1) for soil and water conservation practices achieved.
3649,"Although the reports establishment of new PES contracts does not mean that they will be successful, it is essential that there are active contracts for the restoration objectives to be achieved."
3650,This indicator is linked to the PDO indicator 3 and therefore considers the Six-monthly 2.3) Priority land area reforested and/or Six-monthly progress SEAMA/Reflorestar same assumptions.
3651,It Bi-annual progress implementing sustainable land use reports (Subcomponent 2.1) reflects the Reflorestar reports practices through Reflorestar Program Program's evolution towards measuring priority areas within the restored  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) areas.
3652,"The relationship between areas under restoration/priority areas was measured empirically and considering as a baseline the correlation verified in the PES contracts that went into effect from the 2021 call for proposals, which has revealed a ratio of 1 ha in priority areas for each 5 ha allocated for restoration (or 20%)."
3653,"Priority areas are those that have been identified through the Invest model that, if restored, deliver the best sediment retention results."
3654,The monitoring methodology is detailed in the Projects Operation Manual.
3655,Citizen engagement indicator.
3656,"It measures the share of beneficiaries (Program participants) Six-monthly Six-monthly progress SEAMA-Reflorestar 2.4) Beneficiaries satisfied with the satisfied with the Bi-annual progress reports (Subcomponent 2.1) Reflorestar Program Reflorestar Program, to be reports measured through specific surveys at baseline, during and at the end of the Project."
3657,The baseline will be  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) defined before the implementation starts.
3658,The indicator refers to an increase of 10 percentage points in the participation of women (women-headed family farmers) among Reflorestar beneficiaries.
3659,Participatory monitoring should be established to assess the effects on income as a result of expanding the number of women in the Program.
3660,"*There are 33,093 family farms in the state and 2.5) Increase in the participation of Six-monthly 13.4% (4,345 family farms) Six-monthly progress SEAMA (Subcomponent women (women-headed family farms) Bi-annual progress are headed by women in the reports 2.1) among the beneficiaries of the Reflorestar reports state of Espírito Santo."
3661,"PES Program Between 2013 and 2019, Reflorestar has financed 3,795 landholdings in the State, of which women- headed family farms accounted for just 0.79% (and comprised 0.68% of the total women-headed family farmers in the state)."
3662,"In 2020, a new call for expression of interest supported by the World Bank was launched and 30%  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) of the total of 300 contracts signed by Reflorestar benefit women-headed family farmers."
3663,"About 14% of the population of the Itapemirim river basin (79,524) lives in at-risk areas."
3664,The target includes Six-monthly Six-monthly progress AGERH and SEAMA 2.6) People benefitting from measures to the total number of the Bi-annual progress reports.
3665,(subcomponent 2.2) mitigate the impacts of floods population mapped by the reports.
3666,Itapemirim river basin flood risk integrated management plan and benefited from green and/or gray infrastructure measures.
3667,Total number of inhabitants of river basins benefiting from Drought Preparation Plans and implementing measures provided for in the Plans.
3668,"It reflects the Six-monthly 2.7) People benefitting from drought need to implement Six-monthly progress AGERH (Subcomponent Bi-annual progress preparedness measures identified in the preparedness and response reports 2.2) reports drought preparedness plans actions in the basins, including in the normal scenario (without identified drought), seeking to increase the adaptive capacity and reduce and mitigate negative impacts,  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) considering the severity of the drought."
3669,"Population of municipalities covered by the plans (IBGE Census 2010, estimate 2021), namely: Águia Branca - 9,519, São Domingos do Norte - 8,001, Alto Rio Novo - 7,317, Colatina - 111,788, Governador Lindenberg - 10,869, Itaguaçu - 14,134, Itarana - 10,881, Jaguaré - 24,678, Linhares - 141,306, Mantenópolis - 13,612, Marilândia - 11,107, Pancas - 21,548, Rio Bananal - 17,530, Santa Teresa - 21,823, São Gabriel da Palha - 31,859, São Roque do Canaã - 11,273, Sooretama84 - 23,843 and Vila Valério - 13,830) Six-monthly progress reports Urban areas in the Sources: Population, To municipalities of Ibiraçu, Six-monthly tal risk areas, Total João Neiva and Águia Branca Bi-annually progress properties at risk, Total DER-ES (Component 3) 3.1) Area under reduced flooding risk that will have reduced reports people at flooding risk due to the risk, Percentage of infrastructure works."
3670,population in risk areas - CPRM - SECTORIZATION OF  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) GEOLOGICAL RISK AREAS Urbanized Area - IJSN/Geobases - Mapping Project of Periurban Areas of ES Percentage of Risk Areas in the Urbanized Area (ha) - Agerh/C ohip.
3671,"Respective urban areas: Águia Branca 42,48 ha; Joao Neiva 364,57 ha; Ibiraçu 247,27 ha."
3672,"Six-monthly progress reports Sources: Population, To tal risk areas, Total properties at risk, Total people at Urban areas in the risk, Percentage of municipalities of Iconha and Six-monthly population in risk areas Alfredo Chaves that will be Bi-annual progress - CPRM AGERH (Component 3) 3.2) Area mapped for flood risk reduction mapped through reports - SECTORIZATION OF hydrological modelling for GEOLOGICAL RISK flood risk reduction."
3673,AREAS Urbanized Area - IJSN/Geobases - Mapping Project of Periurban Areas of ES Percentage of Risk Areas in the Urbanized Area (ha) - Agerh/C  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) ohip.
3674,Urban areas: Iconha 198.58 ha and Alfredo Chaves 122.27 ha.
3675,Citizen engagement indicator.
3676,"Measures the percentage of satisfaction of participants in Project Six-monthly AGERH, CEPDEC, SEAMA, 4.1) Participants satisfied with the events events, including, among Six-monthly progress Bi-annual progress DER-ES (Components 1, 2 organized by the Project in which they others, satisfaction with reports."
3677,"and 3) take part disaster preparedness training, use of systems open to the public, and procedures for requesting water rights."
3678,Citizen engagement indicator.
3679,"It measures the rate of Project-related complaints responded to appropriately (ie dissatisfied Six-monthly AGERH, CEPDEC, SEAMA, 4.2) GRM: the rate of complaints related Six-monthly progress people having access to Bi-annual progress DER-ES (Components 1, 2 with the Project that are properly and reports."
3680,complain and appeal to reports.
3681,"and 3) timely responded higher levels if necessary); and within an appropriate period (maximum of 30 days, as established in the SEP)."
3682,ME IO Table SPACE  The World Bank Brazil: Espirito Santo Water Security Management Project (P176982)  The World Bank Espirito Santo Water Security Management (P176982) ANNEX 1: Implementation Arrangements and Support Plan COUNTRY: Brazil Brazil: Espírito Santo Water Security Management Project Implementation Arrangements 1.
3683,"The Implementation Arrangements and Support Plan considers a multi-sectoral approach and is based on the Project’s scope and risk profile, as well as on the lessons learned from the implementation of the ongoing Espírito Santo Integrated Sustainable Water Management Project (P130682)."
3684,"It relies on: (i) a Project Steering Committee (SC) with strategic and consultative functions; (ii) SEAMA, responsible for overall Project coordination/leadership and for housing the PMU; (iii) four State entities responsible for the implementation of Project activities: AGERH, CEPDEC, SEAMA, and DER-ES through their respective PIUs; and (iv) a consulting firm to provide technical and operational support to the PMU and the PIUs."
3685,These arrangements are shown in Figure A1.1 and detailed in Table A1.1.
3686,The Project Steering Committee will be chaired by the State Secretariat of Economy and Planning (SEP) and is comprised of high-level representatives from the four implementing entities and the PMU’s general coordinator.
3687,"The SC operates at a strategic, consultative level, and ensures the Project’s alignment with government policy and directives."
3688,"The SC will hold quarterly meetings to fulfil its responsibilities, including: tracking Project’s activities; monitoring and assessing progress to ensure that targets, disbursements and expected results are reached as agreed; providing institutional support to the PMU and PIUs, including to ensure that appropriate human resources are in place; monitoring compliance with World Bank policies and guidelines; reviewing and approving key Project documents, such as the POM and annual budget; recommending strategies to resolve bottlenecks during Project implementation; documenting decisions made; and referring issues, as necessary, for deliberation by higher instances."
3689,"In fulfilling its functions, the SC will be supported by an Executive Secretariat led by the Subsecretaria de Captação de Recursos, Secretaria de Economia e Planejamento (SUBCAP/SEP), whose responsibilities will include coordinating and undertaking tasks assigned to the SC."
3690,"The SUBCAP/SEP has extensive experience in managing externally financed operations, and the proposed SC model reflects a similar arrangement to the one in place for the Espírito Santo Integrated Sustainable Water Management Project (P130682)."
3691,"SEAMA will house the PMU to carry out its overall Project coordination/leadership functions, including to coordinate, supervise and report on Project activities and results; perform technical, fiduciary and administrative functions; as well as advise and support the four implementing agencies in fulfilling their Project responsibilities, in compliance with Project regulations and World Bank policies."
3692,"The PMU will comprise a Project coordinator, a financial management specialist, a procurement specialist, a monitoring and evaluation specialist, an environmental specialist, a social specialist, a legal specialist, an operational and administrative specialist, and a communications specialist, as further detailed in the POM."
3693,"It will be staffed by full-time, tenured personnel drawn from the State government in addition to external consultants hired through the PMU to support the planning, coordination, implementation, and monitoring of Project performance."
3694,"The state government has selected SEAMA as implementing agency given its legal mandate to formulate the State Water Resources and Environment Policies, however despite having prior experience with World Bank-financed operations, it has not performed roles of leadership or coordination."
3695,"To mitigate associated risks, Project design includes specific measures to strengthen implementation capacity and effective coordination of the different entities involved, including a management firm, an SC, staff training and both comprehensive Project launch workshops and POM."
3696, The World Bank Espirito Santo Water Security Management (P176982) 4.
3697,"The PMU will serve the following key functions: (i) ensuring proper and timely implementation of Project activities; (ii) monitoring and supporting proper implementation of the Project’s ESF; (iii) assisting in the preparation of TORs; (iv) ensuring that procurement is carried out in the most expeditious manner, with technical input provided by relevant departments and/or expertise in the relevant area being financed, following World Bank rules; (v) monitoring contracts under the Project; (vi) presenting Project progress and financial reports on a timely basis as required by the World Bank; (vii) disseminating results in such a manner as to strengthen stakeholders’ feedback; and (viii) hosting and facilitating World Bank support missions and working to optimize the operation’s results and impact."
3698,"The four implementing agencies, AGERH, SEAMA, CEPDEC and DER-ES, are responsible for the implementation of Project activities that fall under their respective mandates, relying on their organizational structure and staff to do so."
3699,Each has already established a team responsible for Project implementation headed by a Project manager focal point.
3700,"More specifically, these teams will be responsible for the preparation of TORs and bidding documents, participation in the bid evaluation commissions, contract management and supervision, monitoring Project indicators, implementation of environmental and social standards, payments and budgeting."
3701,The teams’ composition and responsibilities are detailed in the POM.
3702,The PIUs will implement those activities in close coordination with the PMU to ensure implementation quality and timeliness.
3703,"With the exception of AGERH, the other three implementing agencies have experience working with the Bank and are currently implementing activities under the ongoing Espírito Santo operation (P130682)."
3704,Two Special Bidding Commissions (SBC) will be created.
3705,"An SBC under SEAMA will be responsible for carrying out procurement processes for Components 1, 2, 3 (ii) and 4; while an SBC under DER-ES will be responsible for carrying out procurement processes for Component 3(i) and Component 3(iii)."
3706,Figure A1.1 – Project Implementation Arrangements  The World Bank Espirito Santo Water Security Management (P176982) 7.
3707,Component 4 (US$6.85 million) will strengthen the State´s capacity to carry out Project activities.
3708,"To this end, it will finance the provision of technical assistance, consulting and non-consulting services, training and goods to the four implementing agencies necessary for the effective implementation of the respective activities under their mandate."
3709,"This Component will likewise support training aimed at qualifying professionals directly or indirectly involved in World Bank procurement policies, in the development of TORs, budget and costs, contract management, supervision, Project monitoring & evaluation, disbursement, and controls, as well as implementation of the environmental and social standards."
3710,Table A1.1 sets out the corresponding functional roles and responsibilities under each Project component.
3711,Table A1.1 - Implementation Arrangements Component Technical M&E Social/ Env.
3712,Procurement Contract FM Implementation Standards Mgmt.
3713,"Component 1 AGERH, CEPDEC AGERH, AGERH, SEAMA AGERH, SEAMA CEPDEC CEPDEC and (PMU) CEPDEC (PMU) and PMU PMU Component 2 SEAMA, AGERH, SEAMA, SEAMA, SEAMA SEAMA, SEAMA CEPDEC AGERH, AGERH, (PMU) AGERH, (PMU) CEPDEC CEPDEC and CEPDEC and PMU PMU Component 3 DER-ES and DER-ES, DER-ES, DER-ES DER-ES SEAMA AGERH51 AGERH and AGERH and (PMU) SEAMA AGERH PMU PMU (PMU) Component 4 SEAMA (PMU) SEAMA SEAMA SEAMA SEAMA SEAMA (PMU) (PMU) (PMU) (PMU) (PMU) Implementation Support Plan and Resources Required 9."
3714,"The Implementation Support Plan is based on the Project’s risk profile, the lessons learned of previous operations with the State of Espírito Santo, and water sector projects of similar scope."
3715,Biannual World Bank implementation support missions will be complemented by continuous dialogue on Project progress and challenges.
3716,"This interaction will cover technical and nontechnical aspects of implementation, including FM, procurement, and ESF."
3717,Implementation Status and Results Reports (ISR) will be filed after every mission.
3718,"The World Bank will continue to provide fiduciary, ESF and other Project-related training as needed."
3719,The Implementation Support Plan will be reviewed annually to ensure that it continues to meet the implementation support needs of the Project.
3720,"At the halfway point of Project implementation, a midterm review will be undertaken with a view to making any changes to the design and implementation arrangements, including any changes to the Loan Agreement that would require a restructuring."
3721,The Bank will work with the PMU and designated officials to clarify the requirements necessary to effect any changes.
3722,"It is understood that any changes to the Project that require amendments to the Loan Agreement 51AGERH will also implement the studies to identify more innovative integrated structural and non-structural solutions to reduce flood risks in the municipalities of Iconha and Alfredo Chaves, under Component 3."
3723, The World Bank Espirito Santo Water Security Management (P176982) will require a formal request from the government’s signatory.
3724,"Six months before the Closing Date of the operation, the government will commence preparation of its Implementation Completion and Results Report (ICR)."
3725,An ICR author from the World Bank will participate in the final implementation support mission and gather the necessary information to prepare the World Bank ICR.
3726,Tables A1.2 and A1.3 estimate the level of inputs and staffing that will be needed from the World Bank to provide implementation support to the proposed Project.
3727,These estimates will be reviewed and revised as needed throughout implementation.
3728,"Table A1.2 - Resource Requirements Focus Skills Needed Project management and Project implementation Team Leaders support coordination Compliance with E&S standards and management of Environmental and Social Development Specialists E&S risks Task Team Leaders, Technical Specialists (Water Technical, oversight of civil works, and quality review Resources Management, Land Management, Flood of Terms of Reference, technical reports and bidding and Drought Risk Management, DRM, Engineering, documents Gender, Climate Change), Externally hired consultants (as needed) Procurement review of bidding Procurement Specialist documents/implementation support FM supervision / implementation support FM Specialist Table A1.3 - Implementation Support Plan Skills Needed Number of Staff Weeks Number of Trips per Year per Year Task Team Leaders 20 2 WRM Specialist 6 2 Flood Risk Reduction and DRM 6 1 Gender Specialist 1 0 Climate Change Specialist 1 0 FM Specialist 3 2 Procurement Specialist 3 2 Environmental Specialist 3 3 Social Specialist 6 3 Operations support 3 2 STC Consultants (support to project management; 6 0 oversight of civil works; technical expertise on drainage, DRM, flood and drought risk reduction, reforestation; support to procurement and contract management) Financial Management 14."
3729,The Bank performed a FMA of the FM arrangements for the Brazil Espírito Santo Water Security Management Project (P176982).
3730,The FMA was carried out in accordance with Bank Policy: Investment Project Financing and Bank Directive: Investment Project Financing and the Financial Management in Bank Financed Operations and Other Operational Matters issued and effective on .
3731, The World Bank Espirito Santo Water Security Management (P176982) 15.
3732,"The scope of the FMA included: (i) an evaluation of existing FM systems to be used for Project monitoring, accounting, and reporting; (ii) a review of staffing arrangements; (iii) a review of the flow of funds arrangements; (iv) a review of internal control mechanisms in place, including internal audit; (v) a discussion with regards to reporting requirements; and (vi) a confirmation of the external audit arrangements."
3733,FM arrangements should place emphasis on governance controls applicable to Project components.
3734,"The conclusion of the FMA is that: (i) the FM arrangements for the proposed Project are considered adequate; (ii) the funds flow, disbursements, monitoring, auditing, and supervision arrangements have been designed in a way to respond to the Project’s implementation arrangements; and (iii) the residual FM risk associated with the Project is rated as Moderate."
3735,There are no FM-related conditions for effectiveness.
3736,"The FMA identified the following risks to the achievement of the Project Development Objectives: (i) the Project has four implementing entities/partners; (ii) the IFRs will run through a different system, (“SAFF – Sistema de Acompanhamento Físico Financeiro”), since the state’s FM information system (Sistema Integrado de Gestão das Finanças Públicas do Espírito Santo – SIGEFES) does not account for cash basis nor allow the transactions to be booked by category, component and subcomponent, and (iii) the current workload posed by the ongoing project."
3737,"The above risks’ mitigation measures are: (i) the PMU will need to work closely with SEFAZ and the implementing partners to ensure the coordination is working as planned, (ii) the SAFF system will be contracted for this Project, so the Project’s transactions can be booked per category, component, and subcomponent and the automated IFRs can be generated through the system and (iii) to hire additional professionals, especially the dedicated FM Specialist."
3738,"Implementing Entity: SEAMA is a body directly administered by the State Government and manager of public policies for the Environment and Water Resources, responsible for managing the tools that help improve environmental conditions and promote sustainable development in Espírito Santo."
3739,"It was created by Law No4,126 of 1988 as the State Secretariat for Environmental Affairs."
3740,In 2002 it was renamed the State Secretariat for the Environment and Water Resources through Complementary Law No248 of 2002.
3741,"Among its attributions are supporting the development of research, scientific studies, and projects for the definition of standards for the release of liquid effluents, solid waste, water resources, pollution, soil, among other parameters for the control of potentially polluting and degrading activities."
3742,"SEAMA is also responsible for coordinating the actions of the State Council for the Environment (CONSEMA), the Regional Councils for the Environment (CONREMAs) and the State Water Resources Council (CERH)."
3743,"Staffing: SEAMA’s financial department (GFS)52 in conjunction with the Planning and Budget area 53 (GPO) are responsible for the management of processes, projects, and routines related to the preparation, execution, and monitoring of the budget, financial, and accounting procedures."
3744,"Currently, SEAMA’s team comprises 1-Undersecretary for Administrative and Financial Affairs; 1-Head of the Planning and Budget Group (GPO) with 1-Assistant and 1-Head of the Sector Finance Group (GFS)."
3745,"In addition to having adequate knowledge of the state budget, accounting, administrative rules and procedures, the current Head of GFS/SEAMA has extensive experience with various Bank policies and procedures participating in both the implementation of the ongoing Project and other previous projects 52 GFS – Gerência Financeira 53 GPO – Gerência de Planejamento e Orçamento  The World Bank Espirito Santo Water Security Management (P176982) financed by the Bank."
3746,"Currently, SEAMA has a small number of staff, but an administrative restructuring is planned with the creation of new positions and salaries with a bill to be sent to the Legislative Assembly."
3747,"As to ensure appropriate financial staffing arrangements, by loan effectiveness, SEAMA should nominate two FM Specialists, and respective tasks and duties will be detailed under the POM."
3748,"In addition, each implementing agency (CEPDEC, DER-ES and AGERH) should appoint and/or hire at least one staff, specifically for this Project, to undertake all FM related tasks and to assure segregation of functions, which will be detailed in the POM."
3749,It is expected that the financial management team (from all the implementing agencies) will participate in all Bank’s fiduciary and disbursement trainings throughout the Project life.
3750,"Planning and Budgeting: The State’s budget process is clearly defined, follows Law 4,320/64, and is in line with IPSAS standards."
3751,"The budget cycle includes the planning and implementation of all government activities, which are to be reflected in the Multiyear Plan (Plano Plurianual – PPA), Budget Guidelines Law (Lei de Diretrizes Orçamentárias – LDO), and Annual Budget Law (Lei Orçamentária Anual – LOA).54 The entire process of elaboration of the LOA, PPA, and LDO is carried out by the SEP, with the participation of all state agencies."
3752,The current PPA has been prepared for 2020-2023.
3753,The next one will be prepared in 2023 for the period 2024-2027.
3754,"SEFAZ will include the Project in the next PPA, by ."
3755,"Normally, the pre-approval budget request process or PLOA55 initiates in the month of July of the previous year."
3756,"Overall, the preparation of the budget will be carried out by SEAMA and submitted to SEP which will prepare the final state budget proposal to be approved by the State Legislative Assembly."
3757,"The current procedures to plan Project activities, prepare related budgets, and collect information from the other Project executors in charge of the different components were considered satisfactory."
3758,The Project will be executed under the “Programa de Gestão Integrada dos Recursos Hídricos e Revitalização de Bacias Hidrográficas do Espírito Santo – Águas e Paisagem II”.
3759,The State budget has been timely approved and available at the beginning of each year.
3760,"The Project’s budgeting, accounting, and financial transactions will be processed through the integrated SIGEFES that is used by all state institutions that receive/transfer government funds."
3761,A specific ledger of accounts is created in the SIGEFES system under each of the executors for budget and financial reasons to identify the source of funds.
3762,"All payments will follow the official commitment (empenho), verification (liquidação), and payment (pagamento) routines.56 The budget preparation and expenses are fixed based on the revenue forecast and the monitoring of budget execution is carried out by the Planning, Budget, and Finance Management."
3763,All executing agencies will execute their budget by observing the monthly fiscal budget limits determined by the SEP. No payments shall happen outside the Finance and Budget System – SIGEFES.
3764,"In parallel, the SAFF,57 a license owned by the State of Espírito Santo utilized to monitor the state’s projects, will consolidate the Project’s accounting entries, for 54 PPA, LDO, and LOA include the government’s goals and programs that are approved by Congress every five years, 18 months, and 12 months, respectively."
3765,"55 Projeto de Lei Orçamentária Annual (PLOA), a bill initiated by the Head of the Executive that estimates revenues and fixes expenses for the following financial year, with a structure and level of detail defined by the LDO for the year."
3766,"According to Article 57 of Law No11,354/2021, all entities of the Executive Power must provide budget, financial and asset management sent by the State Secretariat of Economy and Planning within the deadlines stipulated in the aforementioned requests."
3767,"56 At the commitment stage (empenho) proposed expenditure is verified to ensure that spending proposals have been approved by an authorized official, that funds have been appropriated in the budget, that sufficient funds remain available in the proper category of expenditure, and that the expenditure is proposed under the correct category."
3768,At the verification stage (liquidação) the documentary evidence that the goods have been received or that the service has been performed is verified.
3769,"Before the payment stage (pagamento) confirmation is needed that a valid obligation exists, that the competent person has signed that the goods or services have been received as expected, that the invoice and other documents requesting payment are correct and suitable for payment, and that the contractor is correctly identified."
3770,These controls are built into SIGEFES.
3771,57 Solution for Physical and Financial Project Management system (Sistema de Acompanhamento Físico Financeiro ).
3772, The World Bank Espirito Santo Water Security Management (P176982) monitoring and reporting purposes.
3773,"The SAFF system is a secure, efficient, and transparent environment tool used to plan, implement, and monitor the annual budget exercise."
3774,It also allows for monitoring the POA and the main bidding data.
3775,The reports are generated using the Business Intelligence (BI) tool which is built in the SAFF system.
3776,The new web-based version of the SAFF system allows the online consultation of the information and access will be made available to all Project executors.
3777,"Actual expenditures are compared to budgeted expenditures, monthly, and justifications are provided for variations relevant to the budget."
3778,"If there are significant variations to the budget, justifications are presented to the Secretariat of Economy and Planning to promote readjustment."
3779,"Any relevant variations to the originally planned budget need to be submitted and reviewed by SEP. For Project purposes, SEAMA will be responsible to undertake monthly budget variations reviews and request any increase of the approved budget, that requires pre-approval, which is sought through a budget supplemental process."
3780,Each executor will only have access to its budget and financial transactions per its own “UG – Unidade Gestora” or Management Unit.
3781,"However, SEAMA, as the PMU, will have full access to the Project’s executors’ entity budget and financial transactions through the “read-only” access of the SIGEFES system."
3782,"As to better monitor the project, the PMU will request to SEFAZ, within one month after loan effectiveness, system access as “read-only”, for the Project’s executing agencies or the “Management Unit” participating in the Project."
3783,"Accounting: The state of Espírito Santo follows: (i) the Brazilian Accounting Standards Applicable to the Public Sector (Normas Brasileiras de Contabilidade Aplicadas ao Setor Público-NBCASP); (ii) Law 4,320/64, that establishes certain high-level accounting principles (Normas Brasileiras de Contabilidade Técnica Aplicada ao Setor Público-NBCT SP); and (iii) the Accounting Manual Applicable to the Public Sector (Manual de Contabilidade Aplicada ao Setor Público-MCASP) issued under Law 10,180 of , and Decree 3,589 of ."
3784,"Both the NBCASP and MCASP were revised via Portaria STN 467 of , and updated in 2013 to incorporate the text of the International Public Sector Accounting Standards (IPSAS), with adaptations for the Brazilian reality."
3785,"There is a work plan to implement the IPSAS – PIPCP, issued through the National Treasury Secretariat’s (STN) Ordinance Implementation Plan N° 548/2015, in progress, that will culminate in the convergence of 35 IPSAS currently in force by 2023; with the STN subsequently verifying the data of the respective entities of the Federation, by the year 2024."
3786,The state is following the STN NBCASP implementation schedule.
3787,"Based on a total of 21 IPSAS applicable to the state of Espírito Santo, a total of 17 have been fully implemented, or 81%."
3788,"Transactions under the Project will be accounted for on a cash basis, for disbursements, reporting and auditing purposes."
3789,"Although the Bank is not financing any PIPCP activity, it will follow up on it throughout the Project’s life as it is directly related to the achievement and sustainability of the Project Development Objectives."
3790,"The state of Espírito Santo has satisfactory accounting arrangements, controlled through the integrated Budget, Accounting, and Financial system called SIGEFES, in line with the STN rules."
3791,SIGEFES is managed by the SEFAZ Information Technology department.
3792,"The SIGEFES system was implemented in 2014, which was the result of the consolidation and integration of three technologically outdated systems, such as: i) SIAFEM - “Sistema Integrado de Administração Financeira dos Estados e Municípios do Espírito Santo” or the integrated financial administration system for the states and municipalities, ii) SIPLAN - “Sistema Integrado de Planejamento” or the integrated financial planning, and iii) SISPPA (“Sistema do Plano Plurianual”), the Pluriannual Plan System."
3793,"The SIGEFES is a modern solution developed in state-of- the-art language and aimed at web environments, allowing a high degree of process automation and ease of generating management reports."
3794,"The system guarantees the state government’s compliance with the accounting standards required by the STN for convergence with the international standards (IPSAS) and  The World Bank Espirito Santo Water Security Management (P176982) provides more transparency to the financial and budget management in the executive and legislative branches by converging all information on expenditures and investments directly to the Court of Auditors (TCE-ES), Public Prosecution (MP-ES) and court of Justice (TJ-ES)."
3795,"The Bank evaluated the robustness of the SIGEFES system and although it follows the current national accounting procedures, it does not allow the monitoring of the Project’s transactions per category, component, and subcomponent."
3796,"Since any customization will not be finalized in time for the Project’s launch, the operation will follow the accounting arrangements established for the current project (P130682), which is made through the financial management system called SAFF."
3797,The SAFF system should be fully operating within ninety days after loan effectiveness.
3798,"All Project transactions will be booked in the SIFEGES state system, and the SAFF system."
3799,The Project’s accounting records from SIGEFES and SAFF systems will be reconciled monthly by the PMU.
3800,"Internal Controls: Although SEAMA will hold the primary fiduciary responsibilities for the Project and PMU staffing is appropriate to assure segregation of functions and reconciliations of accounts, all executing agencies will also need to ensure a proper FM and control environment."
3801,"The State Secretariat of Control and Transparency - SECONT is the unit responsible to support the State’s direct and indirect agencies, on legal procedural compliance for contracting public expenditures and complying with the public information access law."
3802,"Therefore, for Project purposes, SECONT will be responsible for the internal audit compliance-related functions and certain aspects of internal control."
3803,"SECONT is responsible to carry out the internal audit of SEAMA, and during the last three years, issued an unmodified opinion over SEAMA financial statement."
3804,The Project will be included in the Annual Audit Plan and the PAINT system within one month after loan effectiveness.
3805,"For Project purposes, all payments will follow acquisition, verification of invoices, and payment routines."
3806,"The transaction processing (recording annual budgets, budget commitments, and payables; authorizing payments and internal control reviews) will be carried out by each executing agency."
3807,"SEAMA, in conjunction with SEFAZ, will manage the two Project’s bank accounts (Brazilian reais and US dollars)."
3808,"Other internal control mechanisms include the review and the reconciliation of payments, proper access to systems, segregation of functions and observation of internal administrative codes and procedures."
3809,The Project’s bank accounts for all the executing agencies should be reconciled daily.
3810,"A staff, who does not process or approve payments, will review all unusual items, and refer them to the responsible official for approval."
3811,"In addition, the PMU will ensure that all the Projects’ assets that are being acquired with the loan’s funds will be accounted for."
3812,"The PMU will ensure (for the whole time of Project implementation) that there is a control in place that guarantees that all purchased assets, by each implementing agency are: 1) used only for the Project’s activities; 2) listed in an inventory record; 3) each asset is given an individual master record and number (that is, recorded as an individual asset and depreciated according to its individual useful life); 4) physical inventory control is performed annually for these assets and reconciled with the respective control accounts; and 5) the asset is maintained in good condition."
3813,"The Project’s assets will be accounted for through the SIGEFES, SIGA/Asset System, and SAFF systems."
3814,"Since these systems are not integrated, the PMU will ensure that all records within the three systems are reconciled every month."
3815,"Anti-corruption Arrangements: The Brazilian Anti-corruption Law (Federal Law 12,846) establishes civil and administrative liability for legal entities in relation to acts of corruption."
3816,"The Law implements the OECD Anti-Bribery Convention, strengthens anti-corruption enforcement and is broadly  The World Bank Espirito Santo Water Security Management (P176982) in line with (and, in some respects, even stricter than) similar legislation found in other jurisdictions—such as the U.S. Foreign Corrupt Practices Act and the U.K."
3817,Bribery Act.
3818,"Brazil’s Law represents a significant step, exposing companies—not just individuals—to liability and fines for the first time."
3819,"SEAMA and all implementing state agencies shall also observe the Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants (dated as of October 2006; revised as of ), that set the general principles, requirements, and sanctions applicable to persons and entities which receive, are responsible for the deposit or transfer of, or take or influence decisions regarding the use of the loan proceeds."
3820,SEAMA and state agency staff involved in project implementation must observe the highest standard of ethics and take all appropriate measures to prevent and refrain from engaging in sanctionable practices.
3821,"SEAMA and state agency staff must report allegations of fraud and corruption in connection with the use of the loan proceeds, maintain appropriate fiduciary and administrative arrangements, cooperate with Bank investigations, take timely and appropriate action to address the problem, and follow other applicable government related rules and guidelines."
3822,"Based on the current Ombudsman’s structure in the state’s bodies, the Project will also establish a Grievance Redress Mechanism - GRM, to further strengthen the relationship between the beneficiaries and those responsible for the project."
3823,These channels must be publicized in all means of communication used to publish the works carried out by the Project.
3824,"The executing agencies (AGERH, DER-ES, CEPDEC and SEAMA) and SEP have designated and trained ombudsmen, with access to operationalize the Ombudsman system of the Executive Power of the State of Espírito Santo – e-OUV and duly accompanied by the monitoring and support team of the General Ombudsman’s Office."
3825,"The Project’s internal control system will be documented in the POM, which will reflect the detailed staff duties, procedures, and guidelines for disbursements, payments, approvals, commitments, and reporting, whose draft was approved by the Bank before Negotiations."
3826,"The POM should be prepared by the PMU, approved by the Bank and maintained/updated throughout the Projects’ life."
3827,Funds Flow and Disbursement Arrangements: The disbursement of Project funds will be processed following Bank procedures as stipulated in the Legal Agreement and in the Disbursement and Financial Information Letter (DFIL).
3828,Funds will be disbursed in respect of eligible expenditures incurred or to be incurred under the Project and will be disbursed following agreed financing percentages.
3829,"The proposed funds flow and disbursement arrangements were considered satisfactory and will be streamlined within the project to facilitate execution, avoid unnecessary incremental operational arrangements, and rely as much as possible on Public Financial Management (PFM) country systems."
3830,"The following disbursement methods will be available: Reimbursement, Direct Payment, and Advances."
3831,The Advance method will be the primary disbursement method.
3832,For Advances disbursements will be documented based on statement of expenditures (SOEs) and customized SOEs for PES following the prescribed agreed format.
3833,"The Designated Account (DA) will have a fixed ceiling of US$ 16,000,000."
3834,Reimbursements will also be documented by the regular and customized SOEs.
3835,Direct Payments will be documented by records (copy of the invoices).
3836,The frequency for reporting eligible expenditures paid from the DA is quarterly.
3837,"SEFAZ will open a segregated DA, in “Banco do Brasil”, in Brasília, in the name of the State of Espírito Santo to receive loan funds in US dollars."
3838,"An operational account, exclusive for the Project, will also be opened in Banco do Brasil, in Brazil in local currency (Reais) to receive and transfer resources to the implementing agencies’ transitory accounts, which will be opened by each project executor to receive  The World Bank Espirito Santo Water Security Management (P176982) the transfers from SEFAZ and pay suppliers, contractors, and PES (Payment for Environmental Services) in local currency."
3839,"There will be a total of five transitory accounts (to account for the cash inflows from SEFAZ and the cash outflows to the suppliers and PES): two in SEAMA (one of which in FUNDÁGUA), one in AGERH, one in DER-ES and one in CEPDEC."
3840,"Since all transfers from SEFAZ will be made against the list of invoices and PES submitted, the transitory account will serve mainly as a registering and controlling process and they will always be kept zeroed."
3841,"The Designated Account, the Operational Account and the transitory accounts should be opened, exclusive for the Project, within one month after loan signing."
3842,SEFAZ will be responsible for managing the Designated Account and SEAMA will be responsible for managing the Operational Account.
3843,The below flow of funds and internal processes will be included in the POM.
3844,Figure A1.2 – Flow of funds 39.
3845,"Based on the bank statements and the electronic payment notification received from each implementing agency’s financial focal point, (who will function as a liaison between the PMU and the implementing agency’s financial department - per the current Project design), all Project financial information from the SIGEFES, SIGA/Asset System and SAFF systems, will be reconciled by the PMU, monthly."
3846, The World Bank Espirito Santo Water Security Management (P176982) 40.
3847,The pari-passus counterpart will be executed by SEFAZ and monitored by SEAMA.
3848,The PMU will include in the POM the process to monitor the counterpart funds.
3849,"Retroactive financing will be allowed for this Project up to an aggregate amount not to exceed US$17,220,000 to be made for payments up to twelve months before the signing date of the Loan Agreement for eligible expenditures."
3850,"The ESCP includes provisions to carry out an environmental and social audit – according to a methodology agreed upon between the Bank and the Borrower – to ensure the consistency of the Environmental, Social, Health and Safety management procedures adopted during the implementation of the activities proposed for retroactive financing with the principles and requirements of the relevant ESSs and to submit to the Bank an Evaluation Report and establish (as required) a Plan of Corrective Actions that is satisfactory to the Bank as conditions to obtain the Bank’s no objection for retroactive financing."
3851,"The loan will also have a four-month grace period after the closing date, during which the World Bank will accept withdrawal applications relating to project transactions incurred before the closing date."
3852,"The Minimum Application Size for Direct Payments will be US$ 1,000,000 equivalent."
3853,All disbursement details will be reflected in the DFIL.
3854,The table below specifies the categories of eligible expenditures that may be financed out of the proceeds of the Loan.
3855,The information required for the compilation of Statements of Expenditure and Summary Sheets will be maintained by the Financial Management sub-unit in the PMU.
3856,"Table A1.4 - Disbursement Categories Percentage of Expenditures Amount of the Loan Category to be Financed (Inclusive of allocated (US$) Taxes) (1) Goods, consulting services, non-consulting services 29,451,417 100% and Training under the Project (2) Works under Components 1.2, 2 and 3 48,394,100 67% (3) PES under Component 2.1 7,439,233 67% (4) Operational Costs under Component 4 of the 600,000 100% Project (5) Emergency Expenditures 0 100% Amount payable pursuant to Section 2.03 of this (6) Front-end fee 215,250 Agreement in accordance with Section 2.07 (b) of the General Conditions TOTAL 86,100,000 43."
3857,"Payment for Environmental Services: Considering that the Bank is currently supporting the Payment for Environmental Services under the Espírito Santo Integrated Sustainable Water Management Project (P130682), Loan No8353 and that the proposed Project areas may overlap in some few cases with the areas under the ongoing Project, and to avoid supporting twice the same areas, a disbursement condition will restrict the disbursement of PES funds under the new loan before the complete use of PES allocated funds under the ongoing Project."
3858, The World Bank Espirito Santo Water Security Management (P176982) 44.
3859,Contingent Emergency Response Component (CERC): The objective of this zero-fund component (financed under category 2) is to support the State of Espírito Santo in eventual emergencies associated with natural disasters that affect water systems.
3860,"During project preparation, the definition of the key aspects of the CERC has been detailed as an Annex to the POM."
3861,"The same flow of funds, accounting, financial reporting, disbursement methods and corresponding supporting documentation requirements, will apply to disbursements under the CERC, that will be described in the initial DFIL, as the CERC will also be implemented by the same implementing agencies.58 45."
3862,"The Bank will revise the ceiling or limit of the DA and the MAS , taking into consideration the planned emergency program expenditures, potential delays or difficulties in banking transfers in emergency situations, communication difficulties in working in remote or inaccessible areas and other factors to ensure that sufficient liquidity is secured always to enable smooth Project implementation."
3863,"Financial Reporting: The SAFF system will control, account for, report on, and manage the proposed Project."
3864,"The system can provide the necessary data to prepare the respective reports in local currency (Brazilian reais) and US dollars, for monitoring purposes on a cash-basis (although the State also follows accrual accounting)."
3865,"As a result, the PMU will ensure the timely production of semiannual Interim Financial Reports (IFRs) for further submission to the Bank, within 60 days after the end of each semester."
3866,The IFRs will be generated from the SAFF system.
3867,SEAMA should submit for Bank’s validation the IFRs (the automated format and content) no later than sixty days after loan effectiveness.
3868,"Accordingly, the format and content of the IFRs will cover the following items: • IFR 1 - Sources and Uses of Funds by disbursement category, with evidence of the World Bank’s share in the financing of expenditures, cumulative (project-to-date, year-to-date, and for the period) versus actual expenditures, including a variance analysis • IFR 2 - Uses of Funds by Project Activity or Component and subcomponent, cumulative (project-to-date, year-to-date, and for the period) versus actual expenditures, including a variance analysis • IFR 3 - Designated Account bank reconciliation and Bank statements • IFR 4 - Disbursement Forecast 48."
3869,"External Auditing: The Court of Auditors of the State of Espírito Santo (TCE-ES) is the public body that conducts the accounting, financial, budgetary, operational, and patrimonial inspection of the state, municipalities, and entities of the direct and indirect administration, regarding aspects of legality, legitimacy, and economy."
3870,"Specifically for this Project, annual financial statements will be audited by independent auditors, satisfactory to the World Bank, in accordance with acceptable auditing standards.59 The external audit will be conducted according to the TOR acceptable to the World Bank (prepared by the PMU and approved by the Bank) and in accordance with International Standards on Auditing (ISAs) issued by The International Auditing and Assurance Standards Board (IAASB) of the International Federation of Accountants (IFAC) or national auditing standards if, as determined by the Bank, these do not significantly depart from international standards."
3871,"The audited financial statements will be prepared in accordance with 58 If another entity, other than the ones stated under the Project will be responsible for the CERC, a new FMA will need to be performed of that entity."
3872,59 The government communicated to the Bank that the TCE-ES does not have an interest to audit the Bank’s Project and has declined a similar request made by the Inter-American Development Bank – IADB.
3873,"However, the Bank will seek opportunities to enhance the dialogue with TCE-ES for future operations."
3874," The World Bank Espirito Santo Water Security Management (P176982) accounting standards acceptable to the Bank (that is, IPSAS or national accounting standards where, as determined by the Bank, they do not significantly depart from international standards)."
3875,"According to the World Bank’s guidelines, the auditors will also have to prepare a Management Letter, where any internal control weaknesses will be identified, which will contribute to the strengthening of the control environment."
3876,"The auditor’s report will be submitted to the World Bank no later than six months after the closing of the fiscal year, and the annual audit may be financed out of the loan proceeds."
3877,Specific audit TORs will be prepared by SEAMA and submitted to the Bank’s No Objection within sixty days of the signature of the Legal Agreement.
3878,"The General Conditions require the Borrower/Recipient to retain all records (contracts, orders, invoices, bills, receipts, and other documents) evidencing eligible expenditures and to enable the Bank’s representative to examine such records."
3879,"They also require the records to be retained for at least one year following receipt by the Bank of the final Audited Financial Statement required in accordance with the Legal Agreement or two years after the Closing Date, whichever is later."
3880,Borrowers/Recipients are responsible for ensuring that document retention beyond the period required by the Legal Agreement complies with their government’s regulations.
3881,"Conditions or Nonstandard/Significant Financial Covenants (Relevant issues to be included in the Legal Documents): Except for the first disbursement condition, there are no other FM-related conditions for Board and/or Effectiveness."
3882,Procurement 53.
3883,Procurement under the proposed Project will be carried out in accordance with the World Bank Procurement Regulations for IPF Borrowers dated November 2020 and the provisions stipulated in the Legal Agreement.
3884,The various items under different expenditure categories are described in general terms below.
3885,"For each contract to be financed by the Loan, the different procurement methods or consultant selection methods, the need for pre-qualification, estimated costs, prior review requirements, and time frame will be agreed between the Borrower and the Bank in the Procurement Plan."
3886,The World Bank's Standard Procurement Documents will govern international competitive procurement.
3887,"For national procurement processes, the Borrower will use Standard Procurement Documents acceptable to the World Bank that will be included in the POM."
3888,Procurement of Civil Works.
3889,"Civil works procured under the Project will include, among others, civil work for installations under a Design and Build approach, for example, CERD and civil works to mitigate flooding risks in areas as defined in the Project."
3890,Procurement of goods.
3891,"Goods procured under the Project will include, among others: pipes and hydraulic equipment, software packages, communications services, educational materials, vehicles, IT equipment and other tools required to put in place an integrated client system control."
3892,"Such procurement may be carried out in accordance with the method known as “Pregão Eletrônico”, provided (i) documents are acceptable to the Bank and in accordance with the Procurement Regulations; (ii) documents include anti-corruption clauses; and (iii) the process is carried out under an e-procurement system previously approved by the Bank."
3893,Procurement of non-consulting services.
3894,"Non-consulting services under the Project will include, among others: capacity building support to the implementation and beneficiaries’ agencies; monitoring, reporting and evaluation-related services; events of various natures, including training, workshops and seminars; logistics, such as hotel services, catering and travel services; printing services,  The World Bank Espirito Santo Water Security Management (P176982) videoconferencing materials, brochures, magazines, intranet, and videos; communication and education campaigns and events."
3895,"It may be carried out in accordance with the method known as “Pregão Eletrônico”, provided (i) documents are acceptable to the Bank and in accordance with the Procurement Regulations; (ii) documents include anti-corruption clauses; and (iii) the process is carried out under an e- procurement system previously approved by the Bank."
3896,Selection of consultants.
3897,"Consulting services under the Project will include technical assistance and advisory services of various natures and purposes, including: engineering services; water resources and environmental studies, feasibility and pre-feasibility studies, diagnostics and impact assessments; software and system development-related services; among others."
3898,"The following methods will be used for selecting consulting firms depending on the nature and complexity of assignments, attractiveness to foreign firms and need for international expertise, estimated budget of the services: Quality and Cost Based Selection (QCBS), Least Cost Selection (LCS), Selection under a Fixed Budget (SFB), Selection Based on Consultant’s Qualification (SBCQ), Single-Source Selection (SSS) both for consulting firms and individual consultants, and Selection of Individual Consultants (IC)."
3899,"Contracts estimated to cost US$ 300,000 equivalent and more will be advertised internationally."
3900,"Operational costs refer to office supplies, per diem, staff related expenses, sundries, incidentals, and other project implementation related expenses which would be financed by the Project and will be procured using any implementing agency’s administrative procedures acceptable to the Bank and outlined in the POM."
3901,"However, they should be described in the procurement plan accordingly."
3902,"The procurement procedures and standard bidding documents to be used for each procurement method, as well as model contracts for works and goods to be procured, are presented in the POM."
3903,"The assessment determined that the procurement staff to be designated for the Special Bidding Commissions be, ideally, kept exclusively to assist Project implementation."
3904,Procurement assessment.
3905,The Bank team performed a Procurement Assessment to evaluate the capacity of the agencies involved to implement procurement actions for the Project.
3906,"Procurement activities will be carried out by SEAMA and DER-ES – SEAMA is the PMU’s central unit for the execution, coordination and monitoring of procurement processes and for overall Project implementation and monitoring."
3907,"The agencies’ responsibilities will include, among others: procurement planning, implementation and monitoring, ensuring quality of bidding documents, and participating in bid evaluations."
3908,"The Bank reviewed the organizational structure for Project implementation and the interaction between Project staff responsible for technical aspects and PMU staff skills, quality and adequacy of supporting and control systems, and suitability of applicable laws, rules and regulations."
3909,"The assessment determined that the procurement staff designated to the Project should be, ideally, kept exclusively within the implementation agencies to assist Project implementation, especially in PMU."
3910,"In addition, a procurement consultant with experience in Bank procedures should be hired on an ad hoc basis to assist during critical stages of the procurement processes."
3911,"Based on the information provided at preparation, the procurement risk is Moderate."
3912,"The following action plan was proposed to address and/or mitigate risks during Project implementation:  The World Bank Espirito Santo Water Security Management (P176982) Table A1.5 - Procurement Action Plan Action Description Action Time frame SEAMA must complete the Create an SBC and hire and/or designate staff 1 By Effectiveness Procurement Team for the SEAMA’s SBC responsible Little experience of Hiring of an ad hoc procurement specialist to SEAMA and lack of support Agencies’ staff; experience of DER- 2 Strengthening the capacity of Agencies, By Effectiveness ES in implementing through ongoing Bank support and specific World Bank- procurement training financed projects Use of: (i) national media to increase interest Lack of Interest of for works, goods and non-consulting services, companies to (ii) international media to increase interest in 3 participate in the As defined in the POM the selections of consultancy of higher tendering complexity, and (iii) direct contact with the procedures market Prior to Effectiveness, as the Obtain expert advice to inform the definitions TORs and TEs are prepared, Inadequate quality of the TORs and TEs and throughout of TORs and 4 implementation Technical Technical no objections to technical Specifications (TEs) documents to be issued by the World Bank Prior to launch of each Project procurement process Look for budgeting based on data that reflects Prior to Effectiveness, as cost Weak and imprecise 5 the market and not just on official tables estimates are prepared, and cost estimates issued by various spheres of government throughout implementation Maintain strict control over the companies and Before signing the first Companies involved individuals present in the different control lists contract using Loan funds, 6 in fraud and in Federal, State, and Municipal scope, and and throughout corruption issues even in lists of international financing implementation institutions Members of the team with responsibility for the formal control of the execution of Before signing the first Contract contracts, controlling and monitoring the contract using Loan funds, 7 management progress of the contracts, also the milestones and throughout for their development, such as deadlines, implementation."
3913,readjustments (when applicable).
3914,Capacity building.
3915,"It was agreed that an approximate amount of US$ 200,000 will be made available under Project proceeds to finance procurement capacity deemed appropriate and previously approved by the Bank."
3916,Procurement arrangements for the Project were established taking into consideration SEAMA and DER-ES´s existing systems.
3917,"The technical agencies (AGERH, DER-ES, SEAMA and CEPDEC) are responsible for elaborating the Terms of Reference and Technical Specifications."
3918,The SBCs are responsible for elaborating the bidding documents and Requests for Proposals and conducting the  The World Bank Espirito Santo Water Security Management (P176982) procurement/selection processes.
3919,"The Project team will count on a focal point in each SBC responsible for developing the Project’s procurement packages, including among other activities: (i) consolidating the procurement packages for consulting services; (ii) issuing requests for expressions of interest, requests for proposals and procurement notices; (iii) conducting opening and negotiations sessions, when applicable; and (iv) consolidating evaluations and inputs from the technical evaluations."
3920,Anti-corruption.
3921,All bidding documents and respective contracts regardless of the procurement method are required to have the anti-corruption (A/C) clause as a condition for eligibility of expenditures.
3922,Procurement Plan.
3923,"The Borrower has prepared a Procurement Plan for the first eighteen months of Project implementation, which provides the basis for the procurement processes."
3924,The use of the Systematic Tracking of Exchanges in Procurement (STEP) is mandatory to manage the Procurement Plan.
3925,This Plan was agreed upon between the Borrower and the Bank during the appraisal and was approved before the end of Negotiations.
3926,The Procurement Plan will be updated in agreement with the Bank on an annual basis or as required to reflect actual Project implementation needs and improvements in institutional capacity.
3927,Summary of PPSD.
3928,"Based on the strategy developed and low-risk and low-value activities planned so far, it is expected that the activities will be carried out with the following arrangements: (i) Works: carried out through RFB and RFC - National approach; (ii) Goods and non-consulting services: the Project plans to finance the procurement of goods to be acquired through SDO, SDC - National Approach and e- reverse auction, with bidding documents acceptable to the Bank; (iii) Consulting Services: the Project will finance, inter alia: consulting activities, mainly for planning, construction projects, auditing, monitoring, supervision and data collection."
3929,"QCBS, LCS, QCS are the most appropriate selection methods, but this approach can be reviewed in the face of the finalized TORs."
3930,It should be noted that any change in the conditions described in this strategy must necessarily be reflected in this document and in the Procurement Plan.
3931,Procurement Supervision during Implementation.
3932,"In addition to the prior review supervision to be carried out from Bank offices, the Bank will undertake at least one early supervision mission to visit the field and carry out post review of procurement actions."
3933,It is estimated that twelve staff weeks for procurement supervision will be required during the life of the Project.
3934, The World Bank Espirito Santo Water Security Management (P176982) ANNEX 2: Detailed Project Description COUNTRY: Brazil Espírito Santo Water Security Management 1.
3935,"The proposed Project is a US$113.6 million Investment Project Financing (IPF) operation, financed by a US$86.1 million IBRD loan and US$27.5 million in state counterpart funds."
3936,The Project will be implemented over a six-year period.
3937,"Proposed interventions are grouped around three components focused on the following geographic scales and objectives: statewide institutional strengthening (Component 1), river basin level approaches to build water security (Component 2) and municipal no- regret interventions to reduce flood risks (Component 3), as well as support to Project management (Component 4) and a zero-fund Contingent Emergency Response (Component 5 - CERC)."
3938,Component 1 – Building the Borrower’s capacity for water security in a changing climate (US$15.52 million of which US$14.05 million IBRD) 2.
3939,"This component will build the state’s capacity to manage water security risks by strengthening both SIGERH-ES and CEPDEC water resources and disaster management capacities, respectively, and fostering their better integration."
3940,This will be done through two subcomponents: Subcomponent 1.1.
3941,Strengthening SIGERH’s water resources management capacity (US$7.43 million of which US$7.43 million IBRD).
3942,Implementing agency: AGERH 3.
3943,"The subcomponent is underpinned by the principles set out in the WRM policy instruments established by the State Water Law, whose implementation/modernization is considered pivotal to bolster SIGERH-ES’s effectiveness in improving water security in the state (see Figure A2.1) The proposed activities reflect the key recommendations presented in the State’s Water Resources Plan (PERH) and related Action Plan as selected by AGERH for priority implementation under the Project."
3944,Figure A2.1 – WRM policy instruments in SES 4.
3945,"The Water Law suffers from a number of implementation problems due to overlapping responsibilities and weak I-State Water Resources coordination between federal, state and basin Plan-PERH level authorities, as well as an insufficient use VII-Financial II-River Basin of economic instruments to regulate water compensation for water use Plans demand and poor capacity to enforce more efficient water allocation."
3946,"The use of water rights and charges for agricultural producers SES Water are still in their infancy, while water tariffs for Resources households are rarely sufficient to cover the VI-Water Policy & Law III- Resources Classification investments needed to ensure universal Information of water System bodies access and reduce network losses."
3947,"Some positive experiences exist in managing water conflicts at the basin level, but water basin V-Water IV-Water use management plans rarely serve their purpose charges rights to anticipate and mediate potential conflicts among users."
3948,"Activities under this subcomponent are summarized as follows:  The World Bank Espirito Santo Water Security Management (P176982) AGERH’s institutional assessment, including WRM financial sustainability in the state: 5."
3949,"As the agency responsible for implementing the State’s Water Resources Policy, AGERH’s strong capacity is a crucial element to fulfilling the Policy’s objectives."
3950,"The agency was created in 2013 and sits under SEAMA, however it suffers from insufficient human and financial resources and lacks a robust structure and system to perform its functions."
3951,"The AGERH institutional assessment will consist of specialized consulting services to deliver a study to: (i) assess AGERH’s attributions and functions; (ii) assess the current stage of implementation of the WRM Policy and its instruments by AGERH; (iii) conduct a gap analysis of AGERH’s structure, functions and performance; (iv) identify, map and rate the WRM services, activities, measures and instruments developed and implemented by AGERH; (v) conduct a financial sustainability assessment to determine financing needs, assess water use charges and identify alternative financing sources for AGERH’s operation; and (vi) develop a restructuring proposal for strengthening AGERH’s performance in fulfilling its attributions, including the appropriate structure (technical, administrative and logistical) and staffing."
3952,The study will include as final deliverable a draft of a legal or regulatory provision to change AGERH’s current structure.
3953,"The development, improvements to, and/or implementation of key WRM tools: (a) water rights: 6."
3954,"AGERH currently holds a backlog of over 15,000 water rights requests under review, most of them paper-based and some date back to as far as 2007, in addition to the average 100 requests logged each week."
3955,"It will be necessary to digitalize these requests, strengthen the agency’s human resources and establish effective systems to not only reduce the current backlog but also set appropriate time and quality standards to issue water rights."
3956,"The improvement of the water rights system includes the revision of methodology and criteria, the establishing of process flows to ensure that water uses are allocated effectively, producing draft legal instruments and effective mechanisms to monitor the implementation of water rights grants in the state."
3957,"The activity will include strengthening the criteria taking into consideration water related risks, processes, and decision making system underlying the issuance of water rights; supporting water users to effectively prepare their water rights requests and promote training and capacity building of stakeholders, including a water users support network; and upgrading/updating user and water rights digital registries."
3958,(b) Modernization and operationalization of the state’s water information system (SEIRH/ES) and related hydrological and hydrogeological monitoring networks: 8.
3959,"The SEIRH is established in state legislation for the purpose of collecting, storing, treating and retrieving information."
3960,"This system has not yet been implemented in Espírito Santo; therefore, it constitutes a significant gap for implementing the WRM Policy in the state."
3961,"Although Espírito Santo has a wealth of information related to the management of water resources, these are not organized in the same system and do not provide easy access to the public to properly grasp the situation or for use in technical studies."
3962,"The effective operation of the system is expected to produce technical information related to water availability and monitoring, qualitative-quantitative analysis of water, in addition to presenting aspects related to governance, legislation, as well as the level of implementation of WRM instruments and their results."
3963,The implementation of the SEIRH would include a decision-supporting system to issue water rights and would be completed sequentially to other studies that would serve as inputs to upgrading and modernizing the SEIRH.
3964, The World Bank Espirito Santo Water Security Management (P176982) (c) Updating of the State Water Resources Plan (PERH): 9.
3965,"The State Water Resources Plan (PERH) provides an overall diagnostic of water resources issues (including lower resolution flood and drought mapping) and climate, an analysis of the institutional capacity for WRM management and degree of implementation of the legal framework, an action plan to address WRM issues at the strategic level, and detailed actions to strengthen institutional capacity and to better implement the instruments and rules detailed in the State Water Law."
3966,"The river basin-level plans are complementary to the PERH, providing a more detailed diagnostic of WRM issues at the basin level (including higher resolution flood and drought mapping), and detailed action plans including structural and non-structural measures to address them."
3967,Both are prepared involving key water stakeholders at the state and/or basin level.
3968,Both levels of planning (state and basin) are coordinated amongst themselves.
3969,"The PERH is used to support and guide the implementation of programs, projects and actions for corresponding river basin or hydrographic regions in the state, however once approved, its implementation and monitoring begs improvements, including those related to the role of the RBCs and AGERH in monitoring and discussing the achievement of proposed goals."
3970,"The updating of the PERH (PERH-ES 2018) will include a preliminary risk analysis of floods and droughts, considering the various River Basin Plans carried out after its approval, in addition to strongly incorporating a strategic dimension and involvement of different actors with greater focus on the operationalization and implementation of the Plan."
3971,"The key guiding principle for this activity is on the governance of the implementation, with the definition of actors, indicators and goals, while also reinforcing the need to incorporate absent elements in the previous PERH, such as hydrological extreme events and climate analysis."
3972,The revision of the PERH will enable a more risk-based approach of integrated drought and flood management (thus incorporating lessons from the EU Directive) and will consolidate the Plan with other sectoral planning.
3973,"By completing the activity, the state will also comply with the requirement to produce a revised PERH and submit it to the CERH every five years."
3974,Development of hydrogeological and hydrological studies of selected aquifers and river basins: 11.
3975,"The current information gap on groundwater persists, in particular in regions of intense use, and requires an in-depth analysis and technical knowledge to improve the process of issuing water rights."
3976,The study will undertake a hydrogeological mapping of aquifers in the Metropolitan Region of the capital Vitoria and other water use conflict areas to be defined.
3977,"It will produce proposals for a monitoring network and integrated management of superficial and ground waters, which is expected to enhance groundwater allocation and security."
3978,"Strengthening of a State Water Quality Laboratory, including laboratory and IT equipment, licenses and software necessary for ongoing water quality monitoring and testing: 12."
3979,"This activity will contribute to improving and expanding the state network for quantitative hydrological monitoring and will include the procurement of hydrological stations, flow meters, and other equipment to structure the support labs (LACAR/CPID) dedicated to water quality analysis."
3980,Subcomponent 1.2.
3981,Strengthening CEPDEC’s disaster risk management capacity (US$8.09 million of which US$6.62 million IBRD).
3982,Implementing agency: CEPDEC 13.
3983,This subcomponent seeks to strengthen the State Coordination for Protection and Civil Defense’s (CEPDEC) capacity to manage water security risks and respond to disasters.
3984,The proposed activities are underpinned by the PEPDEC and have been selected as priority actions to enhance the state’s DRM in response to hydrological events and introduce a more integrated risk-based approach.
3985,Activities are  The World Bank Espirito Santo Water Security Management (P176982) summarized as follows: Construction of the Specialized Disaster Response Center (CERD): 14.
3986,"Currently CBMES lacks a dedicated area for practical training on search and rescue operations in response to disasters as well as a storage area for maintaining vehicles, boats and specialized equipment."
3987,The stockpile of materials and equipment are dispersed across various CBMES units and the lack of a dedicated space prevents the large-scale mobilization for specific events that require qualified professionals and surge response.
3988,"The construction of the CERD will enable the SES to become better prepared to operate in the response to extreme hydrological events across four pillars: training, mobilization, logistics and operations."
3989,"It is expected that the CERD will comprise the following units: • Humanitarian assistance shed to store first aid kits and material to assist people in the event of emergencies; • Operations and logistics shed for prompt deployment and maintenance of vehicles, boats, tractors, buses and trucks, operational equipment and personal protective equipment; • Mobilization and training shed to house classrooms, apartments, lodges, restaurant and laundry room; • Instructional runway to perform disaster simulations; • K9 kennels for treating, feeding and providing veterinary service to animals conducting search operations; and • Helicopter pad for transporting personnel and specialized equipment, and humanitarian assistance material."
3990,"The CERD will be constructed through the D&B modality, in which the contractor will prepare the designs and build the Center in an area located in Carapebus (land donated by the Arcelor Mittal Tubarão company), in the municipality of Serra (north of the capital Vitoria), with the full infrastructure, including civil works, electric, electronic, fire alarm and security systems, fencing, water supply, furniture, information technology, radio communications; thereby providing, installing and testing systems, as well as performing technical and operational training, corrective and preventative maintenance."
3991,The activity will also include a technical visit to similar centers abroad to incorporate innovations and best practices.
3992,"When finalized, the CERD will house skilled CBMES personnel holding specialized training and equipment to remain available on a 24-hour regime."
3993,"This will significantly address the current gaps in the existing response capacity and ensure clarity on first responders in the case of future complex disasters, applying global lessons on DRM."
3994,"Provision of specialized equipment, notably fire trucks and emergency kits: 17."
3995,The procurement of equipment seeks to complement goods acquired under the scope of the current operation in SES to contemplate additional areas and fill gaps that emerged during the COVID-19 pandemic as specific goods became unavailable in the market.
3996,The goods to be acquired include specialized rescue vehicles that are expected to strengthen the response capacity of CBMES/CEPDEC and expand its service delivery in response to extreme hydrological disasters.
3997,"Training, with a particular focus on including gender aspects in DRM: 18."
3998,"The increasing occurrence of extreme events in the state have exposed the need to strengthen the response capacity of CBMES fire brigade, with corresponding gaps in preparation, organization and knowledge in specialized technical areas."
3999,"The corporation has identified specific competences, abilities  The World Bank Espirito Santo Water Security Management (P176982) and skills needed to improve the human resources capacity to respond: (i) Confined Space Rescue, (ii) Rope Rescue, (iii) Trench Rescue, and (iv) Incident Command System (ICS) 300/400 – General Complex Incidents."
4000,"The activity will include training, technical visits to excellence centers and other practical courses, with a focus on building capacity of instructors to replicate knowledge."
4001,The training will include gender-sensitive aspects and will target women participants.
4002,"Design and implementation of an electronic emergency command, control and coordination response system (Incident Command System software): 19."
4003,"CBMES currently lacks a computer-based tool to support resource command, control and management actions."
4004,"The activity will apply the ICS software to operate as a digital and interactive web- based platform for high-complexity events that will allow integrating and coordinating efforts from individual agencies working around a joint objective to stabilize critical situations and protect lives, property and the environment."
4005,"CBMES and CEPDEC personnel have extensive expertise in the theoretical and practical use of the ICS, which will enable the improvement of information flow, data registering and report generation to be incorporated in the ICS."
4006,Component 2 – Demonstrating climate-smart integrated water security risk reduction approaches in selected basins (US$30.18 million of which US$23.39 million IBRD) 20.
4007,"This component will contribute to reduce water security risks by reducing water contamination and sediment loads as well as flood and dry season water deficits, while promoting biodiversity conservation and enhancing existing carbon sinks in soil and aboveground biomass, leading to significant climate adaptation and mitigation benefits."
4008,Activities are divided into two subcomponents: Subcomponent 2.1.
4009,Expanding the support to the Reflorestar Program in selected river basins (US$16.06 million of which US$12.40 million IBRD).
4010,Implementing agency: SEAMA 21.
4011,"This subcomponent aims to support PES to increase forest cover and implement other climate smart nature-based solutions to reduce water security risks in selected river basin’s priority areas, including Itapemirim, Itabapoana and Benevente, in the South, and Pontões e Lagoas do Rio Doce and Santa Maria do Doce, in the Center-North."
4012,"Brazilian states and municipalities have experimented with alternative approaches to tackle inappropriate land use, chief among which has been that of Payments for Environmental Services (PES), in which landholders are paid to maintain or adopt appropriate land use practices.60 Espírito Santo was a pioneer in this effort.61 The state’s Reflorestar PES Program, Brazil’s largest state-level restoration program, was launched in 2011 (Law 9,864, of ) to promote restoration of the hydrological cycle through the conservation and recovery of forest cover and the improvement of farming practices."
4013,"The program, which consolidates and builds on the lessons of two earlier PES programs,62 encourages the adoption of land uses that protect downstream water uses by offering landholders payments for reforesting or adopting sustainable land uses in hydrologically important sub-watersheds."
4014,"Since 2011, over 9,000ha have been put under sustainable uses by Reflorestar (5,400ha reforested and 3,700ha under 60 See Experiências de pagamentos por serviços ambientais no Brasil, São Paulo: Secretaria do Meio Ambiente (2013)."
4015,"61 Espírito Santo has received continued World Bank support throughout this process, first under the Espírito Santo Biodiversity and Watershed Conservation and Restoration Project (P094233) and then under the Espírito Santo Integrated Sustainable Water Management Project (P130682)."
4016,"62 The ProdutorES de Água program, which had been Brazil’s first state-wide PES program, and the Florestas para Vida program, which had been developed with GEF support under the Espírito Santo Biodiversity and Watershed Conservation and Restoration Project (P094233)."
4017," The World Bank Espirito Santo Water Security Management (P176982) productive sustainable uses) and over 10,000ha of standing forest have been conserved."
4018,See Box A2.1 for additional information on the PES Program in Espírito Santo.
4019,"An important lesson learned from the implementation of Reflorestar to date, and other PES programs around the world, is that the hydrological benefits vary substantially depending on the land uses being implemented, its location within a watershed, and the nature and magnitude of downstream water uses."
4020,"From this lesson, Reflorestar began to implement rules to better direct its activities."
4021,"Thanks to these efforts, the proportion of land enrolled in the program located in the most valuable hydrological areas has increased from 1 ha in 12 to 1 ha in 5."
4022,"This is a huge progress, but there is still much room for improvement."
4023,"Reflorestar data also show (consistent with results from other regions) that the hydrological benefits of forests are greater than those of agro-forestry, which in turn are greater than those of silvopastoral practices."
4024,"As currently designed, Reflorestar is narrowly targeted to areas that protect domestic water users."
4025,"Under the proposed Project, the Reflorestar program will be expanded in two ways: (i) by adding areas that contribute to other hydrological benefits, including reducing flood risk and dry season water shortages,63 and (ii) by incorporating additional contract options (including physical conservation structures – such as small/mini water ponds or soil built dry boxes)."
4026,"The Project will also finance studies and provide technical assistance (TA) to SEAMA to help continuously improve the Reflorestar program’s efficiency and effectiveness, including by, inter alia (a) strengthening Program targeting; (b) developing additional financing sources, such as from the private sector; (c) strengthening its institutional capacity; (d) improving its communication strategy; (e) assessing its effectiveness (in inter alia, attracting participants - including vulnerable and marginalized groups, with a specific target to reach 40 percent of women among new Reflorestar participants; targeting payments to priority areas; providing the desired environmental services; and keeping administrative costs low); and using the lessons to improve it; and (f) improving the Portal Reflorestar, which participants use to enroll in the Reflorestar PES Program and SEAMA uses to administer it."
4027,"The subcomponent will support the continuous improvement of (a) the identification of priority areas for land use change and establishment of soil conservation measures, using hydrological models such as INVEST; and (b) the program's operating rules with the objective of increasing the allocation of registered lands to these priority areas."
4028,"Based on these lessons, the subcomponent will also no longer simply count the registered hectares, but will use a weighted indicator that takes into account whether a given hectare is located in a priority area or not and the nature of the land use."
4029,Co-financing of project payments to farmers will also be proportionate to this weighted indicator.
4030,It is anticipated that these land use practices will also generate important benefits in terms of carbon sequestration and biodiversity conservation.
4031,The Bank is currently supporting the Reflorestar PES Program under the Espírito Santo Integrated Sustainable Water Management Project (P130682).
4032,"Considering that the proposed Project areas may overlap in a few cases with the areas under the ongoing Project, and to avoid supporting twice the same areas, a disbursement condition will restrict the disbursement of PES funds under the new loan before the complete use of PES allocated funds under the ongoing Project."
4033,"In addition, the Bank will receive for approval the list of geo-referenced proposed PES contracts, before the Project submit the correspondent request for disbursement (all areas enrolled under the PES program are geo-referenced, not only to 63Studies being undertaken under the current Project will help identify the new priority areas, which may be different from current areas, or may overlap with them, in which case they will receive a higher priority."
4034," The World Bank Espirito Santo Water Security Management (P176982) ascertain that they are indeed located in the priority areas, but also to avoid double-dipping)."
4035,"It is important to note however, that landholders that have already participated in Reflorestar can apply to the program to support conversion of additional areas to sustainable practices, if they have successfully completed earlier land use changes."
4036,"This is not double-dipping; on any given eligible hectare, landholders can only receive support once."
4037,The mechanism for payment and eligibility are described in detail in the Reflorestar Annex to the POM.
4038,"Box A2.1 PES in Espírito Santo Coordinated by the State Secretariat for the Environment and Water Resources – SEAMA, Espírito Santo's Reflorestar PES Program was established in 2012 under Law No8,960, building on the earlier ProdutorES de Agua program."
4039,"ProdutorES de Agua was created under Law No8,995 of 1998, and was the first state-wide PES program in Brazil."
4040,"It supported forest conservation in hydrologically important areas, paying participating landholders to preserve existing forests, using funding from Fundágua, which was also established in 2012, under Law No8,960."
4041,"Fundágua receives 2.5 percent of oil and natural gas royalties paid to the state and must devote at least 80 percent of its resources to PES; as an example, annual transfer to the PES program has already reached around US$5.6 million in the past and, in recent years, it has been varying between US$1.9 and US$2.8 million per year."
4042,"Among the innovations in the Espírito Santo PES mechanism implemented by Law 9,864, of 06/26/2012, the possibility of substantially higher payments stands out, with emphasis on those that aim to support the costs involved in forest restoration."
4043,"To exemplify, considering costs with the acquisition of inputs and labor, 1 hectare of restoration is hardly feasible with costs below R$ 20,000, which is higher than the average annual income of most rural producers in Espírito Santo."
4044,"The legal framework for PES established by the 2012 Law allows rural producers to receive support in the restoration of 1 hectare of forest of up to R$ 12,912, destined to the acquisition of inputs necessary for the restoration, leaving the rural producer in charge of providing the workforce for the preparation, implementation and maintenance of the plantations."
4045,"The amounts to be paid as a form of support for the restoration of each hectare, the Short Term PES, vary according to the forest arrangement to be supported, and can reach R$ 3,954 if the restoration is carried out by conducting natural regeneration; R$ 5,447, if the restoration is carried out after the implementation of a silvopastoral system; R$ 8,554, if the restoration is carried out after the implementation of managed forest; R$ 12,226 if the restoration is carried out using sole native species, and R$ 12,912, if the restoration is carried out based on the implementation of an agroforestry system."
4046,"A management plan is developed for every participant, which shows existing forest areas and areas to be restored."
4047,"As of November 2016, through a technical and financial cooperation agreement, the PES mechanism implemented by Reflorestar began to be operated by the Development Bank of ES – BANDES, which also made its network of independent consultants available to Reflorestar, who started to take over the entire technical assistance part of the Program and taking over the development of management plans, and monitoring of compliance."
4048,"Participants are not obligated to bring their entire property under compliance with environmental laws, but receive lower payments if they do not; conversely, they receive higher payments if they exceed requirements."
4049,This approach avoids the all-or-nothing approach that has proven a major obstacle to participation in similar programs in other states and creates an on-going incentive to meet or exceed conservation requirements.
4050,Reflorestar was initially implemented throughout the state.
4051,"More recently, it has been increasingly targeted: first at priority watersheds, and now also at priority areas within each watershed."
4052,The criteria is published annually detailing eligible areas and payment rates.
4053,"In addition to the Reflorestar PES, the Project will finance physical water and soil conservation structures."
4054,"Farm ponds (or barraginhas) are small basins dug into the ground with a diameter between  The World Bank Espirito Santo Water Security Management (P176982) 16 and 20 meters, and gentle ramps, a depth of at most 1.8 m and the average volume of stored water is around 100 m3 (see picture below)."
4055,"They are built scattered around the properties with the function of catching runoff, controlling erosion, and allowing rainwater to infiltrate into the ground and aquifers."
4056,"The construction of barraginhas occurs with the involvement of rural producers, who participate in mobilizing meetings, notably to agree on their location."
4057,"Their construction according to the approved technical criteria) cannot occur in perennial watercourses, in permanent protection areas (APPs), inside gullies, in ""V"" grottos with deep ravines, nor on slopes with a gradient of more than 12 percent."
4058,"The construction of each barraginha takes, on average, one hour on soft and humid soil, and one hour and a half on firm and dry soil."
4059,"According to the legislation of the SES, which deals with the environmental licensing process, the implementation of barraginhas belongs to the list of activities that have low/negligible environmental impact and, therefore, do not require any type of licensing or specific authorization."
4060,"The implementation of these structures is part of several municipal programs to improve water quality and increase water availability during the dry season in rural watersheds, with over 600,000 barraginhas built in the country between 2008 and 2019."
4061,Picture of a barraginha in the state of Espírito Santo (Source: www.es.gov.br) Subcomponent 2.2.
4062,Improving flood and drought management in priority river basins (US$14.12 million of which US$10.99 million IBRD).
4063,"Implementing agencies: AGERH, CEPDEC and SEAMA 30."
4064,"This subcomponent aims to apply an integrated flood risk management approach, with an emphasis on NBS, to reduce flood risks in the Itapemirim basin; and to increase capacity to respond to drought in priority basins located in the State’s Center-North region (tentatively the following four river basins: Santa Maria do Rio Doce, Santa Joana, Pontões e Lagoas do Rio Doce, Barra Seca e Foz do Rio Doce)."
4065,(a) In the Itapemirim river basin: Development of an integrated flood risk management plan (AGERH) and the implementation of nature- based solutions identified in the plan (SEAMA): 31.
4066,"This activity will include the preparation of a basin-scale integrated flood risk management plan, following the EU experience on integrated flood risk management.64 Structural and non-structural measures recommended under the plan will be prioritized for implementation."
4067,"If gray infrastructure is 64 The EU Floods Directive available at   The World Bank Espirito Santo Water Security Management (P176982) identified and prioritized, implementation will be carried out under Component 3 of the Project."
4068,"Strengthening of the flood monitoring, forecasting and alert system (AGERH): 32."
4069,"It includes the development of a systematic hydrometeorological monitoring process for the Itapemirim river basin, implementation of technology and installation of equipment for data generation and transmission and data and information management."
4070,"It will also involve (i) the preparation of an action plan for alerts emission including data flow and procedures, protocols and standardization of informative pieces; (ii) development of an IT platform (computer and cell phone) for management and disclosure of data and information to different audiences (technical staff, decision makers) and the general public; and (iii) development of mechanisms for monitoring the system use including its access by users."
4071,"Implementation of flood risk preparedness communications campaigns for at-risk people, with a focus on women through targeted awareness raising campaigns (CEPDEC): 33."
4072,This activity seeks to improve the risk perception of people affected by extreme hydrological events and improve the warning systems and response procedures in case of emergency situations.
4073,"It will be carried out as a priority with the public in the Itapemirim River Basin, with the possibility of expansion to other areas in the state."
4074,"A more proactive preparation approach will be applied, including the identification and cadaster of affected people residing in mapped at-risk areas, with a special focus on women; outreach campaigns with the full participation of municipal civil defense entities; dialogue with affected communities using specialized communications materials (both paper-based and digital for targeted social media); support to municipal civil defense agencies in the preparation or upgrading of local contingency plans; developing a warning system via SMS to issue targeted alerts to the mapped population; undertaking of evacuation simulations in at-risk areas to strengthen community resilience and response (in principle the following municipalities in the Itapemirim river basin: Jerônimo Monteiro, Cachoeiro do Itapemirim and Itapemirim)."
4075,(b) In the Center-North region: Development of drought preparedness plans (AGERH): 34.
4076,"Drought preparedness plans will focus on the operational dimension in the following four river basins: Santa Maria do Rio Doce, Santa Joana, Pontões e Lagoas do Rio Doce, Barra Seca e Foz do Rio Doce."
4077,The plans will be prepared following the methodology developed under the Bank-supported NLTA on Drought Preparedness and Climate Change Resilience65 based on the Drought Monitor66 information in the State of Espiríto Santo.
4078,The plan will include both preventive measures to reduce drought risks as well as preparedness measures to know in advance what measures would be taken once drought is coming and declared.
4079,Preparation and implementation of rational water use plans (AGERH): 35.
4080,The activity includes the preparation of rational water use plans in the same river basins and implementation of select actions proposed by such plans.
4081,"It involves the diagnosis of water use for irrigation, human and industrial water supply; implementation of targets for rational use upon participatory negotiation; and monitoring of results in a pilot selected area."
4082,65 Brazil Water Series 10 ( PUB-P146301-ADD-SERIES-AND-ISBN-PUBLIC-Aguas-Brasil-no-10.pdf) 66   The World Bank Espirito Santo Water Security Management (P176982) Piloting of the issuance of collective water rights to family farmed micro-basins to facilitate participatory reallocation of water in times of drought (AGERH): 36.
4083,"The activity seeks to develop a methodology and testing it through a pilot, for the issuance of collective water rights to family farmers in rural micro-watersheds with a focus on developing and implementing community self-management."
4084,"This will include the revision of good practices and local legal and regulatory context, the development of a methodology based on this review, the testing of the methodology in a micro-watershed, the evaluation of the pilot and the strengthening of the methodology, the preparation of manuals for AGERH civil servants to replicate the methodology in other areas, communication campaigns guiding the implementation of self-management activities in smallholder microbasins, and provision of technical assistance to landowners for the application of the methodology and tools."
4085,"According to an OECD study,67 collective entitlements depend on devolving responsibility for management to local users, either through a water users’ association or some other entity."
4086,"The resource manager (AGERH) is then only concerned with ensuring compliance with collective entitlement, and not the water use of individual water users."
4087,"A few advantages of this approach include: (i) reducing the number of compliance points and hence the time and cost to government involved in monitoring; (ii) fostering a culture of compliance among users, as it increases recognition that the water allocation process is a zero-sum game; and (iii) potentially providing water users with greater flexibility in how they use the resource."
4088,Key factors for the success of collective water rights include: (i) providing sufficient incentives for water users to take on the management responsibility and move away from the existing arrangements; (ii) ensure water user support; and (iii) support the capacity of the water management agency to monitor and enforce compliance with the entitlement.
4089,Component 3 – Reducing flood risk in targeted municipalities (US$60.91 million of which US$41.67 million IBRD).
4090,Implementing agency: DER-ES68 37.
4091,"Component 3 aims to reduce floods risks in targeted municipalities, which are divided in two groups of critical flood occurrence: (a) The first group includes the municipalities of Águia Branca, João Neiva e Ibiraçu, for which technical solutions have been identified, but feasibility studies need revisions."
4092,"Solutions include dredging to increase flow capacity, widening of the cross section of canals, and internal coating of canals."
4093,"These studies will be revisited, reviewed, and eventually adapted depending on results from the hydrological-hydrodynamic modeling and dimensioning of the interventions to be carried out."
4094,DER- ES and AGERH are responsible for monitoring the revision and completion of studies.
4095,"After studies are ready, DER-ES will be responsible for the implementation of the Design and Build contracts for each municipality and for contracting the supervision of work services."
4096,"(b) The second group of municipalities include Alfredo Chaves and Iconha, where studies are needed to identify innovative integrated structural and non-structural solutions to reduce flood risks."
4097,"Potential innovative solutions include practices that use natural systems to manage stormwater runoff, such as rain gardens, and infiltration basins."
4098,"Studies will focus on the municipalities, but with a broader look at the basins considering nature-based solutions."
4099,"AGERH is responsible for the studies, while DER-ES will implement the works."
4100,"67 OECD (2015), Water Resources Governance in Brazil, OECD Studies on Water, OECD Publishing, Paris, "
4101,"68 In addition to AGERH, to a smaller extent, as AGERH will implement the studies to identify more innovative integrated structural and non-structural solutions to reduce flood risks in the municipalities of Iconha and Alfredo Chaves."
4102, The World Bank Espirito Santo Water Security Management (P176982) 38.
4103,The State Government has designated the selected municipalities impacted by increasing flooding events as high priority areas requiring urgent attention.
4104,"Recent recurrences throughout municipalities in the upper part of the state – Águia Branca, João Neiva and Ibiraçu – prompted the SES Government to single them out for priority infrastructure investments aimed at mitigating the impacts of floods in their respective urban areas."
4105,"Flooding events in Águia Branca (2013, 2018, 2020), resulted in the displacement of 80 people, leaving another 15 homeless, with total financial costs estimated at R$67 million (US$13 million)."
4106,"Floods in João Neiva (2016, 2020), resulted in the displacement of 97 residents, rendering 2 homeless with costs estimated at roughly R$5,544,649 (US$1.1 million); while flooding in Ibiraçu (2009, 2018, 2020) came at a cost of approximately R$6,128,818 (US$1.2 million)."
4107,"Similarly, since 2003 municipalities along the Benevente River Basin, south of the state, have been impacted by extreme flood events, the most devastating of which took place in January 2020 including in Iconha and Alfredo Chaves, leaving in their wake several fatalities, homeless and displaced people, and significant infrastructure damages to industries, businesses, roads, bridges and culverts."
4108,"Flooding in Iconha resulted in 4 fatalities, the displacement of 1,994 people, leaving another 52 homeless with total financial losses estimated at R$273,588,316 (US$0.054 million)."
4109,Component 4 – Project Management (US$6.99 million of which US$6.99 million IBRD).
4110,Implementing agency: SEAMA (PMU) 39.
4111,"This component aims to strengthen the State’s capacity to carry out Project activities, including fiduciary, technical, environmental and social, and monitoring and evaluation aspects."
4112,"To this end, it will finance the provision of technical assistance, consulting and non-consulting services, training, operating costs and goods to key government agencies necessary to effectively carrying out activities associated with Project implementation, including the hiring of a firm to provide Technical and Operational Support."
4113,Component 5 – Contingent Emergency Response Component (CERC) (zero budget).
4114,Implementing agencies: SEAMA and CEPDEC69 40.
4115,"This component will support the State of Espírito Santo, following an Eligible Crisis or Emergency, to respond to emergency situations associated with hydrological events."
4116,"This disaster recovery contingency zero-fund component could be triggered following the declaration of a disaster or emergency, defined as “an event that has caused, or is likely to imminently cause, a major adverse eco nomic and/or social impact associated with natural or man-made crises or disasters.” When triggered, funds may be reallocated to facilitate the rapid financing of goods and services under streamlined procurement and disbursement procedures."
4117,"Eligible activities may include emergency rehabilitation works, supply of critical equipment, or any other critical inputs to respond to the impacts of floods, landslides, droughts and other hydrological climate-related extreme events-."
4118,"If activated, this component would therefore directly enhance the residents’ resilience to climate change."
4119,Project readiness and preparatory activities.
4120,"The ongoing Espírito Santo Integrated Sustainable Water Management Project (P130682) is supporting the preparation of terms of reference (TORs) and carrying out an institutional assessment and technical studies, preparing the ground for the proposed Project implementation."
4121,"It is also funding additional staffing to improve the capacity of implementing agencies for advancing preparatory activities, with the expectation of an overlap between the two operations."
4122,Table A2.1 summarizes the status of key preparatory activities and their estimated completion under the ongoing operation.
4123,69 The typology of activities to be implemented and the detailed implementation procedures are detailed in the POM.
4124, The World Bank Espirito Santo Water Security Management (P176982) Table A2.1 – Project readiness and status of preparatory activities Activity Status Expected completion Hire consulting firm to provide TORs under preparation to start selection Nine months after technical and operational support to process as soon as (or prior to) signing of effectiveness the PMU and PIUs Loan Agreement.
4125,Conclude AGERH’s institutional Selection process under the ongoing project.
4126,January 2024 assessment (Subcomponent 1.1) Complete TORs for technical Hiring of individual consultants to support November 2023 assistance activities under preparation of eight TORs.
4127,components 1 and 2 Prepare selection process documents State project team trained in November 2022 December 2023 for technical assistance activities to start preparation of consultants selection under components 1 and 2 documents.
4128,Contract studies to identify new areas Under implementation as part of ongoing January 2024 of intervention by Reflorestar also project.
4129,focusing on reducing impacts of floods and droughts (Subcomponent 2.1) Revise feasibility studies and prepare Hiring of individual consultants.
4130,December 2023 technical requirements for flood risk interventions in 3 municipalities (Component 3) Prepare Design and Build State project team trained in November 2022 December 2023 procurement documents for the to start preparation of bidding documents.
4131,implementation of flood risk interventions in 3 municipalities (Component 3) Contract modeling studies to inform Individual consultants being hired to support May 2024 flood risk interventions in 2 preparation of TORs.
4132,municipalities (Component 3) Integrated Risk Management The experience of World Bank projects Study tour by October approach following EU Integrated implemented in the Eastern Europe and 2023 Flood Directive Central Asia (ECA) region has been shared through a virtual introductory workshop with SES.
4133,A study tour by SES staff to selected countries in ECA is under preparation.
4134, The World Bank Espirito Santo Water Security Management (P176982) ANNEX 3: Economic Analysis COUNTRY: Brazil Espírito Santo Water Security Management Rationale for Bank’s Involvement 1.
4135,The World Bank funding of this Project is based on a wealth of unique knowledge and experiences of the water sector from around the world.
4136,The lessons learned from past World Bank’s projects in several Brazilian States have strengthened water institutions and established a long history of engagement in capacity building and water infrastructure development.
4137,"The World Bank also attracts and convenes other donors, and relevant stakeholders, with a platform for sharing results regionally and globally to ultimately assess performance against best practices and inform this operation."
4138,The environmental and economic impacts of infrastructures and institutional development support will create better conditions for inclusive and green growth in the State.
4139,"By strengthening Espírito Santo water sector management, promoting water-related disaster risk management, improving land management practices, and refining water quantity and quality, the Project will contribute for long-term water security in the State."
4140,Improved coordination and strengthened capacities of State’s water sector institutions are important support activities to achieve the development objectives of the Project.
4141,"The financial support to the State for integrating water resources and disaster risks management, with strong capacity building activities represent a shift in the policy landscape of the sector for the coming years."
4142,The integrated Water Resources Management (WRM) and climate-related Disaster Risk Management (DRM) approach will contribute to support the development of tools to improve local decision making processes to ultimately reduce the hydrometeorological risks in the State.
4143,"Specifically, the Itapemirim river basin and three vulnerable municipalities are critical Project areas with a potential of accruing relevant environmental and economic gains."
4144,Cost-benefit analysis 3.
4145,The cost-benefit approach was used to compare the economic costs and benefits with and without the Project.
4146,"If benefits surpass costs, the Project is economically viable."
4147,"The present value of expected net benefits was calculated, as well as the economic internal rate of return, and benefit-to-cost ratios."
4148,"The economic evaluation was completed with GHG emissions estimates, a sensitivity analysis with various scenarios to measure the impact that changes in costs and benefits, and a qualitative description of potential ancillary economic impacts of the Project."
4149,"Parameters, assumptions, and scenarios."
4150,"The economic analysis of the Project focused on three subcomponents: the Reflorestar program, the interventions in Itapemirim basin and the urban and flood risk management interventions in three vulnerable municipalities."
4151,"The parameters used in the analysis include an exchange rate of R$5.15 per US$1, with a Project lifetime of 30 years, and standard conversion factor of 1.09 to transform financial to economic values.70 Finally, a discount rate of 10 percent was considered for estimating Net Present Values 70The standard conversion factor is the ratio or economic price value of all goods in the economy at their border price equivalent values to their domestic market price value."
4152,Usually it is also approximated with the inverse shadow exchange rate factor (SERF) as follows: 1+(1/exchange rate)/2)~=1.09.
4153, The World Bank Espirito Santo Water Security Management (P176982) (NPVs).
4154,GHG net emissions of the Project were estimated and added to the economic analysis using the Shadow Price of Carbon (SPC) to monetize GHG net emissions with a baseline year in 2022 with different SPCs.
4155,"A sensitivity analysis included the following scenarios that modified direct costs and benefits: (i) increasing Reflorestar direct benefits of reducing sedimentation and increments in avoided damages in Itapemirim’s locations, (ii) cost overruns of 50 percent during the lifetime of the Project for all components under economic evaluation, (iii) a decline in both costs and benefits that reduces the NPV to zero (breakeven point), and (iv) delays of Project’s implementation up to 10 years."
4156,"In addition, the sensitivity analysis incorporated a scenario of extra indirect benefits and costs."
4157,Indirect benefits included increases in farm income due to better environmental and agricultural practices with higher economic value due to Reflorestar.
4158,"Indirect costs considered costs of additional works (small ponds, dry boxes, and biodigesters) required for the first two subcomponents to materialize the indirect benefits after 10 years."
4159,Estimated costs.
4160,The estimation of costs comprised the investment in infrastructure works for the three subcomponents and the recurrent operation and maintenance (O&M) costs from these interventions.
4161,Administrative and transaction costs of interventions were added based on data availability of each component.
4162,"In the case of Reflorestar, an opportunity cost per hectare annually is proxied at R$ 11,879 (US$ 2,306) spent for alternatives of productive activities and environmental outcomes (see document on file for detailed description)."
4163,Project benefits 6.
4164,Direct Project benefits estimate economic impact of three subcomponents.
4165,For the reforestation interventions (PES-R Payment for Environmental Services - Reflorestar) it was assumed that the extension of forest areas modifies the future values of productive activities and promote better environmental outcomes.
4166,"The Reflorestar benefits are accounted with an increase in mean value of land R$6,400 (US$1,242) per hectare for agricultural activities, with an increase up to R$ 2,411 (US$ 468) per hectare per year of land conversion."
4167,Benefits were net out by considering different transaction costs and subsidies of the Reflorestar program.
4168,The flood and drought management interventions in the Itapemirim basin component will aim to increase capacity to cope with severe droughts and manage excess water from floods in the State’s selected hydrographic region.
4169,These interventions will result in more water available (from 866 m3/sec without the Project to 1772 m3/sec.
4170,"with the Project) intended for different productive uses, mainly agriculture."
4171,A value of extra available water of R$1.7 (US$0.3) per m3 was assumed to monetize these additional water volumes as economic benefits.
4172,"Because the specific nature-based solutions are to be designed as the Project gets implemented, changes in the effectiveness of this component are included in the sensitivity analysis by adding both indirect costs and benefits of complementary infrastructures."
4173,The changes in effectiveness add indirect costs and benefits based on similar conditions of Project’s implementation.
4174,"The third component subject to economic evaluation (flood and landslide risk management interventions in the municipalities of Ibiraçu, João Neiva and Águia Branca) accrue benefits based on the avoided damages to property and physical assets resulting from extreme rainfall."
4175,Investments in structural and non-structural solutions contribute to avoid economic damages in the future.
4176,"The effectiveness of this component is due to improvements in water-related risk management, dredging, cleaning of riverbeds, diversion channels, channeling rivers of structural investments implemented in three urban municipalities (Ibiraçu, João Neiva and Águia Branca)."
4177,"There are also benefits from increments in the value of properties and incomes of US$494,000 per year (due to improved urban conditions that reduce  The World Bank Espirito Santo Water Security Management (P176982) landslide risks)."
4178,The economic rate of return of the Project is 14.9 percent for the entire lifetime of the Project.
4179,"The Net Present Value (NPV) of all components included in the economic evaluation is US$75.8 million, with benefits reaching US$234.3 million, and total costs reaching US$158.5 million at present values."
4180,Financial analysis of Reflorestar 10.
4181,The financial assessment of 30 years of Reflorestar in Espírito Santo shows a financial return that ranged between 8.1 to 11.3 percent.
4182,The discount payback of Reflorestar was between 11 and 17 years after full implementation of the program.
4183,"The annual present value of the financial assessment is between R$ 1.2 million (US$ 240,000) and R$1.7 million (US$335,000)."
4184,GHG emissions 11.
4185,"The net GHG emissions of the Project are -8,682 tCO2-eq on average per year."
4186,"This includes the benefits from avoided gross emissions of -9,362 tCO2-eq average per year from the expansion of reforested areas, and gross emissions of +680 tCO2-eq on average per year."
4187,"The extra net benefits with the low shadow price of carbon (US$ 41.8 per tCO2-eq) are US$ 1.9 million and US$ 3.8 million in the case of the high shadow price of carbon scenario (US$ 83.7 per tCO2-eq), and these benefits could add up to extra US$ 9.0 million of NPV using the most updated price of carbon of US$185 per tCO2-eq."
4188,"With increased water regulation and GHG emissions and capture capabilities of small ponds, there could be additional benefits or costs based on the future changes in the net emissions (including methane)."
4189,Sensitivity analysis scenarios 12.
4190,"A multiple scenario sensitivity analysis considered four initial scenarios of changes in direct costs and benefits, and a scenario that added indirect costs and benefits from the construction of complementary water storage and biodigesters facilities."
4191,The results of the sensitivity scenarios show that the Project’s economic efficiency is more sensitive to changes in cost structures compared to changes in benefits.
4192,"The sensitivity analysis also showed that Reflorestar’s and Itapemirim’s interventions could have substantial economic gains in the future if additional works (small ponds and biodigesters) are used to produce extra environmental and productive outcomes, particularly for farmers."
4193,Other qualitative impacts of the Project show that the environmental and hydrological benefits could be substantial if the efficiency in implementation and adequate rollout of interventions are achieved.
4194, The World Bank Espirito Santo Water Security Management (P176982) ANNEX 4: Gender Action Plan COUNTRY: Brazil Espírito Santo Water Security Management 1.
4195,"The proposed Project aims to strengthen the State of Espírito Santo’s capacity to manage water resources and extreme hydrological events, to reduce their long-term social impacts and increase resilience to water security risks."
4196,The Project’s interventions are targeted to areas most impacted by water security risks in the State: the Itapemirim basin – which is continuously flagellated by seasonal flooding events – and the northwestern hydrographic region – which is scourged by cyclical droughts.
4197,"These water security risks are exerting a heavy and increasing toll on the State of Espírito Santo and their impacts are mostly felt by poor people, as they are usually located in more exposed urban and rural areas, and have less coping capacity."
4198,"The Project will also support technical assistance activities of statewide relevance, including strengthening of SIGERH and CEPDEC as well as the updating of the State Water Resources Plan (PERH)."
4199,Sector-Relevant Gender Gaps 2.
4200,Projects that provide equal opportunities for women and men to participate in the management of both water resources and hydrological disaster risks have the potential to accelerate progress toward meeting WRM goals and reducing prevailing gender gaps.
4201,"International literature acknowledges that women are key players in managing water resources given that they influence how water resources are used, conserved, or wasted and that women and men use and value water (and other natural resources and ecosystem services) in different ways due to their different roles, responsibilities, priorities, and needs."
4202,"However, women often have limited representation in water resource governance systems, institutions, processes, and decision making roles."
4203,"Consequently, women’s knowledge, priorities, and needs are rarely considered in water resource planning and they often lack information, voice, and opportunities to participate in water resource management activities and interventions that are critical to the protection of ecosystems and human livelihoods as well as to enhance resilience to climate fluctuations and water scarcity."
4204,"Prevailing gender inequalities and norms in societies also influence how women and men are affected by, prepare for, respond to, and recover from water-related disasters (floods and droughts)."
4205,"International literature shows that, during droughts, women and girls eat less, pay more for water, and spend more time to collect it."
4206,"In times of water scarcity, it is more difficult for families to maintain proper hygiene, including menstrual hygiene."
4207,"Hence, women are often more adversely affected, both individually and as caretakers."
4208,"Incidences of drought increase time spent on household water collection, which is ordinarily assigned to women and children."
4209,"During floods, women have less access to emergency shelters than men; and enjoy less mobility as they often tend to children and the elderly when disaster hits."
4210,Women are also more vulnerable to gender-based violence (GBV) which often increases during disaster situations.
4211,They often have less access to disaster preparedness information and early warnings; are less equipped than men to respond to disasters; own less assets to cope with disaster-related economic losses; and are less likely to own disaster insurance to pay for damages.
4212,They are also typically underrepresented in disaster risk management (DRM) institutions and professions and DRM policies and programs rarely consider women’s and men’s different concerns and needs.
4213,Women’s higher vulnerability to disasters associated with water security risks (floods or  The World Bank Espirito Santo Water Security Management (P176982) droughts) has many dimensions.
4214,Understanding how gender relations shape women’s and men’s lives is critical to reduce or mitigate the adverse impacts of water security risks.
4215,"Since women and men have different roles, responsibilities, and control over assets and resources, they are impacted differently by hazards, and likewise, cope with risks and recover from disaster in different manners and paces."
4216,Unequal power relations between women and men mean that – despite the incredible resilience and capacity for survival that women often exhibit in the face of disaster – they also experience a range of gender-specific vulnerabilities.
4217,A key gendered impact of disasters is women’s increased post-disaster workload.
4218,"Women are often at the frontline of reestablishing households in relocated or reconstructed sites and collecting basic household needs such as water, food, hygiene items, and fuel."
4219,"Such post disaster duties may cause girls to drop out of school, disrupt female skill building and other livelihood opportunities, and negatively impact women and girls’ time poverty."
4220,"Furthermore, women’s reproductive roles can limit their chances of survival—those in their final stages of pregnancy and women with young children tend to be less mobile."
4221,"In cases where basic health care infrastructure is severely damaged and access to obstetrical care is limited, chances of miscarriage as well as maternal and infant mortality increase."
4222, International evidence therefore shows that the impacts of disasters are not gender-neutral.
4223,"A 20-year study on the gendered nature of natural disaster shows that in societies where the socioeconomic status of women is low, natural disasters kill more women than men—both directly and indirectly through related post-disaster events."
4224,"The study also shows that disasters kill women at a younger age than men, and that the impacts of natural disasters are never merely determined by nature alone."
4225,"The reason for the difference in mortality lies in the fact that women, in general, have lower socioeconomic status which, in turn, leads to unequal access to opportunities and exposure to risks, rendering them more vulnerable to natural disasters."
4226,The presence in SES of women in decision making and managerial roles within institutions responsible for water resources and disaster risk management varies widely.
4227,It mostly reflects obstacles faced by women participating in decision making and leadership positions.
4228,"On the positive side, in 2021, women held a slight majority of managerial positions in agencies involved with SIGERH – occupying 57.1 percent of managerial positions in SEAMA and 53.6 percent of such posts in AGERH."
4229,They further account for 60 percent of CERH’s members.
4230,"In contrast, women account for only 22 percent of members of the State’s 13 existing River Basin Committees (CBH) - 64 of its 289 members."
4231,"Women likewise account for only 1.9 percent of CBMES (which hosts CEPDEC) and represent a minority of participants in the annual training courses offered by CEPDEC to municipal committees of civil defense and protection (COMPDEC) and Community Civil Defense Nuclei (NUDEC).71 Of the 10 DRM courses offered by CEPDEC in 2021 to 71 At the municipal and community levels, each COMPDEC coordinates collaboration with state agencies for disaster prevention, preparedness and response."
4232,"Each COMPDEC is responsible for: (a) preparing and implementing municipal risk reduction, contingency and civil defense operation plans; (b) training human resources for civil defense actions and promoting the development of volunteer associations, seeking to articulate, as much as possible, joint actions with beneficiary communities; (c) managing databases and elaborate thematic maps on multiple threats and vulnerabilities and keeping the population informed of risk areas and the occurrence of extreme events as well as of prevention and warning protocols and emergency actions during disasters; (d) carrying out simulated exercises, with participation of the population, for team training and improvement of contingency plans; (e) identifying/mapping disaster risk areas and promoting the inspection of building and risk areas, preventive interventions and disaster prevention/reduction behaviors; (f) evacuating the population in high-risk areas or vulnerable buildings, supervising disaster risk areas and seal new occupations in these areas; (g) collecting, distributing and monitoring supplies in disaster situations; and (h) evaluating damages and losses in areas hit by disasters."
4233,"The Community Civil  The World Bank Espirito Santo Water Security Management (P176982) municipalities across the State, female participation accounted for only 29 percent of the 1,399 participants."
4234,There is also a growing body of evidence in international literature highlighting the importance of endorsing a gender-sensitive approach for payment of environmental services given that ecosystems are highly gendered.
4235,"Such evidence shows that: (i) women and men derive different values and benefits from ecosystem services and resources; (ii) ecosystem services affect different dimensions of well-being that are distinctively valued and known by men and women; (iii) decreased access to/or availability of ecosystem resources and services have different impacts on the livelihoods of women and men; (iv) women and men recognize and value different types of environmental services (regulating versus provisioning services, respectively); and (v) participation in payment for environmental services has been lower for both female-headed households and women within male-headed households.72 9."
4236,"The international literature has also emphasized that: (a) women and men often have differential access to and derive different benefits from ecosystem services, (b) their perception and knowledge of ecosystem services differ and the understanding of these differences is critical for ensuring that policies aimed at enhancing access to and use of ecosystem services can provide benefits to all genders, and (c) female-headed households reported expending more yearly effort on PES activities despite protecting less land, and also increased their conservation activities over time as they presumably became more familiar with PES."
4237,"Use of income from PES also showed differences between male and female-led households, with men more likely to spend funds on non-essential goods than women, whereas women often value, prioritize, collect, grow, or use ecosystem services for producing energy, food, water and medicine more than men."
4238,"Therefore, restrictions on women’s participation in PES may have a disproportionate effect on their wellbeing and can lead to declines in their income and livelihood options.73 10."
4239,"The participation of women in Payments for Environmental Services is largely limited by the invisibility of their economic contribution in rural areas, poor control of land assets and imbalances in intra-household decision making."
4240,"As revealed via implementation of the Reflorestar Program in Espírito Defense Nuclei (NUDEC) are formed by a community group organized in a district, neighborhood, street, building, community association, entity, among others, which participates in civil defense activities as a volunteer."
4241,"Their objectives are to organize and prepare local communities to respond promptly to disasters, enhance community awareness of natural disaster risks and the importance of preserving the local environment from the perspective of minimizing disasters, and to prepare local communities to collaborate in times of accidents and disasters."
4242,"By 2020, 58 out of SES’ 78 municipalities have organized their COMPDECs and NUDECs, however, only six municipalities have prepared contingency plans, seven have prepared risk reduction plans and ten have completed the mapping of risk areas (desastres.cnm.org.br)."
4243,"72 The international literature has also emphasized that: (a) women and men often have differential access to and derive different benefits from ecosystem services, (b) their perception and knowledge of ecosystem services differ and the understanding of these differences is critical for ensuring that policies aimed at enhancing access to and use of ecosystem services can provide benefits to all genders, and (c) female-headed households reported expending more yearly effort on PES activities despite protecting less land, and also increased their conservation activities over time as they presumably became more familiar with PES."
4244,"Use of income from PES also showed differences between male and female-led households, with men more likely to spend funds on non-essential goods."
4245,In support of these statements: Yang et al.
4246,"(2018), Gendered perspectives of ecosystem services: A systematic Review, in Ecosystem Services 31, 58–67; Fortnam et al."
4247,"(2019), The Gendered Nature of Ecosystem Services, in Ecological Economics 159, 312–325; McElwee et al."
4248,"(2021), Gender and payments for environmental services: Impacts of participation, benefit-sharing and conservation activities in Viet Nam."
4249,"Oryx, 55(6), 844-852."
4250,73 Yang et al.
4251,"(2018), Gendered perspectives of ecosystem services: A systematic Review, in Ecosystem Services 31, 58 –67; Fortnam et al."
4252,"(2019), The Gendered Nature of Ecosystem Services, in Ecological Economics 159, 312–325; McElwee et al."
4253,"(2021), Gender and payments for environmental services: Impacts of participation, benefit-sharing and conservation activities in Viet Nam."
4254,"Oryx, 55(6), 844-852."
4255," The World Bank Espirito Santo Water Security Management (P176982) Santo, the participation of female family farmers has been negligible."
4256,"Between 2013 and 2019, this program – which will be supported by Subcomponent 2.1 – has financed 3,795 landholdings in the State (3.5 percent of the rural landholdings), which has resulted in the adoption of sustainable land use practices in a total of 9,000ha (5,400ha reforested and 3,700ha under productive sustainable uses) and the preservation of over 10,000ha of standing forest ("
4257,"The share of women-headed family farms among Reflorestar beneficiary landholdings accounted for just 0.79 percent and only 0.68 percent of the total women-headed family farmers in the state.74 When it became evident that women landholders were not participating in the Reflorestar, since 2021, the Program Implementing Unit has made some efforts towards a more gender-responsive design and implementation, adding gender of the landholder as a criterion to prioritize proposals submitted by women producers in the 2021 Call for Expressions of Interest."
4258,Since then 30 percent of the 300 contracts signed by Reflorestar benefit women-headed family farmers.
4259,Most Relevant Gender Gaps for the Proposed Project • Women are underrepresented among the State’s Payment for Environmental Services beneficiaries.
4260,"• Women are underrepresented in DRM planning and decision making institutions and processes at the State, local and community levels and their specific concerns and needs may often be neglected."
4261,• Women have less access to information about disaster preparedness and actions as well as early warning systems than men at the local and community levels.
4262,Proposed Gender Actions 11.
4263,"The proposed Project is aligned with the World Bank’s corporative commitment of bridging the gender gap through (i) increasing female beneficiaries in the Reflorestar Program to reduce gender gap in income, voice and agency; and (ii) increasing the participation of women in DRM trainings to reduce gender gap in access to information, participation, voice and agency by preparing women to respond to the situation of risks and disasters."
4264,"The Project’s approach recognizes that the immediate impact of disasters related to water security risks – displacement, destruction of homes, schools, and health services, loss of financial security and livelihoods, and disruption of existing social protection mechanisms – may further expose women and girls to more devastating and long-term effects than men."
4265,"These may include increased vulnerability to GBV and exposure to sexual exploitation, abuse and sexual harassment (SEA/SH)."
4266,"Accordingly, the Project acknowledges that failure to apply a gender lens in disaster risk management and response can reinforce or perpetuate these social consequences on women and girls as well as magnify existing inequalities between women and men."
4267,The Project approach acknowledges that engaging and empowering women are beneficial means of strengthening resilience to disaster risks.
4268,"Just as gender roles and relations shape vulnerability to disaster, conversely, they also shape people’s capacity to prepare, withstand, and recover."
4269,"It also recognizes that women have particular experience and skills to contribute to disaster risk management due to their role as primary caregivers within the family and often within the wider community as well as strong local knowledge of natural resources, surroundings, and valuable links with others in the area."
4270,"Considering the most relevant gender gaps that lead to women’s disproportionate exposure to the social and economic impacts of water security risks and disasters, and that women and men often have differential access to and derive different benefits from ecosystem services, the Project incorporates 74There are 33,093 family farms in the state and 13.4 percent (4,345 family farms) are headed by women in the state of Espírito Santo."
4271, The World Bank Espirito Santo Water Security Management (P176982) a set of actions and gender sensitive approaches that are expected to reduce gender gaps.
4272,These actions are: (a) Increasing the participation of women beneficiaries in the Reflorestar Program: Ensuring female family farmers are provided a more equitable share of the benefits of the Reflorestar Program’s payment for environmental services.
4273,"Achievement of this goal will include activities related with: (a) carrying out an assessment of the drivers of exclusion of women family farmers (in addition to imbalances on land tenure) from the Program, aiming to better identify and help overcome gender barriers that have so far hampered women’s equitable participation in its benefits as well as to promote the payment of ecosystem services that are mostly recognized and valued by women; (b) improving its communications strategy and the web-based Portal Reflorestar (which participants use to enroll in the program) aiming to attract, reach out and foster participation of female family farmers; and (c) implementing a participatory strategy to monitor and evaluate the effects on increase in income and agency as a result of the expansion of women's contracts with payment for environmental services – Reflorestar Program (participatory monitoring implemented."
4274,(b) Increase the participation of women in the DRM training courses offered by CEPDEC to municipal civil defense and protection committees (COMPDEC) and Community Civil Defense Centers (NUDEC).
4275,"Strengthening the capacity of the State’s disaster management officers by: (i) introducing improvements to the existing information management, monitoring and evaluation system rendering it able to collect and analyze sex-disaggregated data;75 (ii) carrying out capacity building events on the gendered aspects of disaster risk management for Project workers, staff of the implementing (PIUs) and coordination (PMU) agencies, and members of CEPDEC, COMPDEC and NUDEC; (iii) carrying out dissemination campaigns on best practices for gender mainstreaming in disaster resilience and disaster response activities; and (iv) fostering women’s participation in community preparedness training events and disaster risk response drills organized by CEPDEC."
4276,"(c) Ensuring that disaster risk management plans and activities supported by the Project rely on gender-inclusive risk and vulnerability assessments and foster through collaborative workshops the active participation of women and girls in: (i) the definition of risk maps; (ii) the development of community-based risk management procedures and activities for preparedness and response; (iii) development of action/contingency plans for post-disaster preparedness and recovery that are able to address women’s and girls’ special needs to cope with disasters; and (iv) the definition of early monitoring and/or warning activities adjusting communication channels and incorporating gender- sensitive content that are easily understood, used, and accessible to both men and women."
4277,"The goals of these activities are to: (i) enhance women’s participation in the COMPEC and NUDEC, and aiming to increase women’s participation up to 40 percent of the new contracts signed by Reflorestar; (ii) ensure that women’s views, concerns and particular needs are taken into consideration in disaster risk preparedness and response; and (iii) ensure disaster preparedness information and actions conveyed in these municipalities are gender-sensitive and rely on access channels that are readily available to women living in at-risk areas including improvement of Databases for Disaster Risk 75CEPDEC has a disaster information management system that provides data on number of affected people by type of impact."
4278,"The system informs that Between 2013 and 2020, 794 disasters were registered in the state of Espírito Santo, more than double the previous decade, which 27 percent were related to floods, 21 percent to droughts and 7 percent to landslides, leading to an estimated 120 deaths and the displacement of roughly 230,000 people."
4279,"However, this system does not hold gender disaggregated data."
4280,"Therefore, a first activity will consider the establishment of a gender-sensitive baseline."
4281, The World Bank Espirito Santo Water Security Management (P176982) Management.
4282,"In addition to this main focus, the Project will also support the state in raising awareness of reducing gender disparities in representative participation in the River Basin Committees (RBCs)."
4283,"Thus, the Project will support actions fostering women’s participation in the RBCs so that their specific concerns are better represented in these planning and consultative instances which play a central role in water resources management."
4284,This goal will be pursued through the carrying out of awareness raising campaigns amongst the State’s RBCs on the relevance of including female representatives and considering their perspectives for sustainable water resources management.
4285,These campaigns will focus on recognizing the importance of better understanding the particular concerns and views women may have with regard to water resources and the need to address these concerns and views in water resources management.
4286,"• The goals of these activities are to: Support the State to reduce the level of female underrepresentation in these instances by 10 percent in the next mandate, creating an enabling environment for the proper consideration of women’s views, concerns and particular needs in water resources management and planning at the local level."
4287,"The initial focus of these interventions will be the RBC organized within the areas of Project interventions that are drought or flood prone (the Itapemirim River Basin and the Santa Maria do Rio Doce, Santa Joana, Pontões, Lagoa do Rio Doce, and Barra Seca e Foz do Rio Doce basins)."
4288,Proposed Key Indicators 14.
4289,"The implementation and effectiveness of the Gender Action Plan will be monitored and evaluated throughout Project implementation, for which two Intermediate Results indicators have been selected to be measured as part of the Results Framework: • Increase the participation of women (women-headed family farms) among the beneficiaries of the Reflorestar PES Program - (10% increase in the percentage of signed contracts); and • Increase the participation of women in the annual training courses offered by CEPDEC to municipal civil defense and protection committees (COMPDEC) and Community Civil Defense Centers (NUDEC) - (increase at least 10% the participation of women in the total number of course participants)."
4290, The World Bank Brazil: Espirito Santo Water Security Management Project (P176982) ANNEX 5: Map COUNTRY: Brazil Espírito Santo Water Security Management