PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE November 2009 Report No.: AB5272

Public Disclosure Authorized Project Name Rio Bogota Environmental Infrastructure Region LATIN AMERICA AND CARIBBEAN Sector Sewerage (70%); Flood protection (30%) Project ID P111479 Borrower(s) CORPORACION AUTONOMA REGIONAL DE CUNDINAMARCA (CAR) Implementing Agency Corporación Autónoma Regional de Cundinamarca (CAR) Carrera 7 No. 36-45, Tel: 320-900, Ext. 1400-1401 Contacts: i) Jose Miguel Rincon, Deputy Director of CAR ii) Aníbal Acosta: Coordinador FIAB, [email protected]

Public Disclosure Authorized Environment Category [X] A [ ] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared October 30, 2009 Estimated Date of November 2009 Appraisal Authorization Estimated Date of Board May 2010 Approval

1. Key development issues and rationale for Bank involvement

The River is located in the Cundinamarca Department of Colombia. It starts at an elevation of 3,400 meters in Villa Pinzon Municipality, and flows 370 km before joining the at an elevation of 280 meters in Girardot Municipality. The Basin covers 6,000

Public Disclosure Authorized km2 and includes 45 municipalities and the Bogotá Capital District, thus the environmental authorities are the Autonomous Regional Corporation of Cundinamarca (CAR) and the District Secretary for Environment (Secretaria Ambiental de Bogotá D.C., SDA) The Bogotá River is an essential river for the Cundinamarca Department, as it is a source of drinking water in the upper basin and it supports multiple uses, such as agricultural and livestock activities and electricity generation.

One of the biggest problems facing the Bogota River is untreated wastewater entering the river as it flows through the west boundary of Bogotá City. In this section, Bogota City, with a population of around 6.7 million, discharges all of its wastewater into the Bogota River through three main tributaries: the Salitre, Fucha, and Tunjuelo rivers. The average river flow before entering the city is 12 m3/s, and Bogotá discharges an additional 19 m3/s of wastewater with only 20 percent receiving primary treatment at the Salitre Wastewater Treatment Plant (WWTP)

Public Disclosure Authorized in the northern side of the city. As a consequence, the river is highly polluted with zero dissolved oxygen and high levels of pathogens. Rapid urban development since 1950, has not only resulted in the deterioration of water quality in the river, but it has also in the channelization of the river, destruction of wetlands, and growth of low-income neighborhoods along the river prone to flooding.

The CAR, the regional environmental authority, in conjunction with the Bogotá Water and Sewerage Company (EAAB), has embarked on a comprehensive urban river restoration project under the overall national government strategy to recuperate the Bogotá River, and it is currently under project preparation for World Bank financing. The proposed project development objective is to transform the Rio Bogota in its middle basin into an environmental asset for the Bogota metropolitan area by improving water quality, reducing flood risk, restoring riparian habitats, and creating multi-functional areas along the river that provide ecological habitat, public use, and enjoyment of an urban river. The main project activities include: (i) the expansion of a wastewater treatment plant to improve water quality in the river and to supplement water supply for nearby agricultural areas; (ii) enhancement of traditional flood control works through river dredging, profile shaping and flood embankment construction; (iii) environmental improvements, such as widening and protecting the riparian zone, restoring the river meanders and wetlands, landscape design, and parks to create multifunctional zones along the Rio Bogota; and (iv) carrying out a program of technical assistance and planning studies to finalize long term operational plans and to enhance project investments.

In 2007 the three key parties: the CAR, the EAAB, and the Bogotá Municipal Government signed Convenio 171 which defined the responsibility of the various parties. The CAR committed to finance the expansion of the existing Salitre WWTP, and the Río Bogotá flood control works from Puente La Virgen to Alicachín. The urban area of Bogotá has expanded to the western edge of the Río Bogotá, and the existing low flood control standards of 10-25 year return floods need to be upgraded. In addiction, CAR has also committed to river recuperation by enlarging the flood plains, restoring wetlands, and creating multi-functional parks. The EAAB assumed responsibility for financing and constructing the necessary large wastewater interceptors, the operation of 8 m3/s Salitre wastewater treatment plant, and the construction and operation of a future 22 m3/s wastewater treatment plant downstream of Bogota at a location referred to as Canoas. The construction phasing (preliminary, primary, and secondary treatment) and financing for the Canoas WWTP is still under consideration.

Rationale for Bank Involvement: The World Bank can bring international expertise to help refine the Plan de Saneamiento, and integrate the investments into a broader urban development and environmental management perspective. The World Bank has been deeply involved in urban development and water supply and sanitation issues in Bogotá over the past decades.

The Bank has supported the water sector in Bogotá through five operations, with the most recent project, Santa Fe I (P006894), closed in 2005 with satisfactory ratings. During the Santa Fe project, EAAB made substantial progress toward the key policy objective of transforming itself into a commercial water utility with a corporate culture based on professional responsibility and accountability. EAAB is owned and controlled by the Bogotá municipal government. In 2003 EAAB contracted three firms to provide customer service, and operation and maintenance of its small diameter water distribution system. EAAB also started the process of restoring the urban wetlands that drain into the Río Bogotá under the Santa Fe project

The Bank has also supported the broader development agenda in Bogotá, most recently with the on-going Bogotá Urban Services Project. The Project focuses on the issues of affordable housing, the improvement of marginalized settlements, improving public transport, comprehensive road maintenance, and inter- agency coordination. The Bank has financed the second phase of the Transmilenio, and is currently helping Bogotá with planning studies for the proposed Metro system.

The proposed project is consistent with the Colombia-World Bank Country Partnership Strategy which highlights environmental sustainability, in particular integrated management of water resources, as one of the five pillars in Colombia’s national development strategy.

2. Proposed objective and Project Components

The proposed project development objective is the transform the Río Bogotá into an environmental asset for the Bogotá metropolitan region by improving water quality, reducing flood risk, and creating multi-functional areas along the river. The performance key indicators are as follows:

• The water quality in the Río Bogotá middle basin meets Class IV water quality standards for BOD (50 mg/l) and SS (40 mg/l) corresponding to the 2006 CAR’s Agreement 43;

Urban Bogotá City and the Municipalities of Cota, , Mosquera y have a minimum flood control protection standard of 100 year return period and an improved drainage system for Bogota City;

• The recuperation of eight multi-functional areas along the Río Bogotá with an area of approximately 175 hectares that have the following attributes: inundation zones, ecological habitat, and public space; and

• An integrated water plan for the Rio Bogota basin to serve as a planning tool to support the project development objective in a medium and long term periods

The project is divided into the following four main components:

Component 1: Upgrade and Expansion of Salitre Wastewater Treatment Plant (WWTP) ($335 million) This component includes the upgrading and expansion of the existing 4 m3/s primary Salitre WWTP to an 8 m3/s secondary plant with disinfection to comply with the existing environmental regulations and meet population growth projections. The project will finance civil works, equipment, and services. This component includes the following activities:

Engineering preliminary design and bidding document preparation. A Phase I consultancy is being conducted by CAR to develop treatment process evaluation, engineering preliminary design and cost estimates, and preparation of bidding documents.

Detailed design and construction through a design/build project delivery system. The plant expansion will include improvements to the influent channel and pump station, additional primary clarifiers, new secondary treatment process, disinfection facility, thickening and dewatering processes, additional anaerobic digesters, cogeneration facility, odor control, monofill for biosolids disposal, and auxiliary facilities. The new facilities will be located in the existing plant site. Program management (Phase II Consultancy). During the design build contract, a program management contractor will provide quality control, monitoring and inspection, perform contract administration, and general coordination and management activities.

Start-up and Plant Initial Operation. The design/build contractor will start-up the plant and will accompany the water company in O&M activities for a 6-month period.

Component 2: Flood Control and River Restoration Works ($140 million) This component includes traditional flood control works such as river dredging and embankment construction with environmental improvements including restoration of meanders and wetlands, landscape design, and parks to create multifunctional zones along the Río Bogotá. This component covers a 68-km stretch of the Bogotá River from Punte La Virgen to Alicachin near Muña Lake. The component includes the following activities:

Land acquisition, resettlement, and compensations. The river works are divided into four approximately equal length sections (Sections A-D) with around 200 lots along the 68 kilometer length of the river. Sections A-D are located in rural areas and involved land acquisition only, along with possible economic compensation. However there is one poor urban area in Tramo C, called Porvenir in the Mosquera Municipality, which requires the relocation of approximately 100 houses and over 200 families, most of them solid waste recyclers, most of whom do not have formal title to the land they live on.

Flood control works. To provide protection from a 100-year flood, the project will improve the existing dike system by building a new embankment in the left or right bank of the river allowing a 30 meter berm. The works will include channel excavation, earth movement, and construction of the dikes.

Landscaping and riparian habitat restoration. Along the 68-km, works will also include plantation of native species and landscaping to harmonize the embankments with adjacent areas based on land use requirements.

Recuperation of eight multifunctional areas including their ecological and hydraulic integration with the Bogotá River. Depending on their physical characteristics, the areas will restore river meanders, create and improve river wetlands, and create public spaces for the enjoyment of an urban river.

Component 3: Environmental and Water Studies ($7 million) This component includes three technical assistance projects to help ensure the sustainability of the overall Río Bogotá program.

Integrated Water Management Plan for the Río Bogotá Basin. This study will assist CAR and other agencies to define environmental objectives in the Bogotá River Watershed, as well as to develop medium and long term investment programs based on existing planning and modeling instruments, new decision-making models, and studies considering environmental, technical, economic, institutional aspects.

Biosolids Master Plan in Bogotá City. The objective is to develop a sustainable biosolids management plan for Bogotá City taking into account beneficial reuse and disposal options, regulatory framework, and available and appropriate technologies.

Bogotá River Management Plan. This project includes a feasibility study and detailed design to optimize the recuperation of the multifunctional areas as ecological habitats, passive recreation, and potential natural treatment systems. Furthermore, it also includes the development of an operation and maintenance manual (O&M) for the river flood control works.

Component 4: Project Management and Administration ($5 million) This component consists of project management carried out by CAR’s project implementation unit (PIU) including oversight of design and construction activities, supervision of the resettlement action plan and environmental management plan, financial audits, and public outreach. Included under this component is the administration of the PIU composed of local staff, vehicles, office equipment, and technical specialist.

3. Safeguard policies that apply

Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OP/BP/GP 4.01) [x] [ ] Natural Habitats (OP/BP 4.04) [x] [ ] Pest Management (OP 4.09) [x] [ ] Cultural Property (OPN 11.03, being revised as OP 4.11) [x] [ ] Involuntary Resettlement (OP/BP 4.12) [x] [ ] Indigenous Peoples (OP 4.10) [ ] [x] Forests (OP/BP 4.36) [ ] [x] Safety of Dams (OP/BP 4.37) [ ] [x] Projects in Disputed Areas (OP/BP/GP 7.60) [ ] [x] Projects on International Waterways (OP/BP/GP 7.50) [ ] [x]

Environmental Assessment (OP/BP/GP 4.01). A three volume Environmental Assessment has been prepared for the project at two levels of analysis. At the river basin level, the EA describes the regional and strategic water quality issues facing the Rio Bogota basin, the baseline environmental situation, the applicable legal and institutional framework guiding the management of the basin, the principal management strategies considered, and alternatives evaluated for different basin management approaches.

Volume II of the EA for Components 1 and 2 describes CAR strategic vision as expressed through various plans, the baseline environmental conditions in the project’s area of influence, and the applicable legal and institutional framework guiding CAR and EAAB’s sanitation works. The EA report considers realistic alternatives to each proposed work and evaluates the proposed works in the context of various investment plans. In addition, the EA provides a comprehensive description of the overall project components, their main environmental risks and benefits, and the measures to be employed during project implementation to ensure management of adverse environmental risks. Volume III of the EA presents a comprehensive Environmental management Plan (EMP) spelling out institutional responsibilities for implementation of mitigation actions as well as supervision and monitoring of compliance with agreed mitigation measures. For example, all construction contractors will be required to follow site-specific management plans agreed on and incorporated into all construction contracts.

Natural Habitats (OP/BP 4.04). Within the project’s area of influence, there are no known terrestrial ecological reserves and no existing aquatic reserves. Because the project aims to contribute to the significant improvement of water quality conditions in the R-B Basin it is expected to have significant positive impacts for the natural riparian habitats found in the project area. The project has specific goals to enhance the quality and condition of wetland areas which are known to be of ecological value as habitat and for their landscape, recreational and tourism potential.

Pest Management (OP 4.09). As part of the river flood control and river works it is possible that large scale earthworks could lead to an increase exposure to health risks from vermin and other disease vectors. As part of the EMP the project has developed a pest management strategy which will guide construction operations.

Physical Cultural Resources (OP 4.11). Preliminary site evaluations for proposed civil works construction do not show any evidence of important cultural property that will require mitigation or management measures. However, since many of the proposed works are underground or will require extensive excavation, it is possible that significant areas may be discovered as construction progresses. All construction contracts will include a “chance finds” clause that will require contractors to halt construction if any underground cultural property sites are encountered during construction. Site specific management plans for any cultural property identified by chance finds procedures will be developed before construction can start up again.

Involuntary Resettlement (OP 4.12). The project will need to acquire substantial amounts of land for the construction of the flood control and river training works. A Resettlement Action Plan has been developed which includes a full accounting of the land to be acquired, the census of affected properties, the valuation methods to be used as well as the applicable disputes resolution mechanism that will apply during implementation. No land acquisition will be required for the expansion of the Salitre plant under Component 1.

Disclosure. As part of the project preparation process, a series of public disclosures, workshops, and focus group meetings were conducted to solicit feedback on the EA and project goals and objectives. Others consultation events and disclosure of project information will be conducted during implementation in order to disseminate information on the project, solicit stakeholder concerns, and ensure an open process of debate and discussion about project objectives and goals.

4. Tentative financing Source: ($m.) Borrower--CAR 237 International Bank for Reconstruction and Development 250 Total 487

5. Contact point

Contact: Greg J. Browder Title: Lead Water and Sanitation Specialist Tel: (202) 473-0339 Fax: (202) 614-0927 Email: [email protected]