INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC2403

Public Disclosure Authorized Date ISDS Prepared/Updated: 07/18/2006

I. BASIC INFORMATION

A. Basic Project Data

Country: Project ID: P099895 Project Name: MUNICIPAL INFRASTRUCTURE DEVELOPMENT Task Team Leader: Sudipto Sarkar Estimated Appraisal Date: December 1, Estimated Board Date: April 10, 2007 2006 Managing Unit: ECSIE Lending Instrument: Specific Investment

Public Disclosure Authorized Loan Sector: General water, sanitation and flood protection sector (100%) Theme: Other urban development (P) IBRD Amount (US$m.): 105.94 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER 25.68 25.68

Public Disclosure Authorized B. Project Objectives [from section 2 of PCN] The proposed project objective is to improve the provision of water and wastewater supply. This objective will be met through: a) preparing projects eligible for EU Structural funds; b) updating land use plans in the coastal municipalities. The land use plans will review the water and wastewater investment needs; c) rehabilitating the water network and supporting institutional improvements in RWCs; and d) rehabilitating and completing dams to ensure adequate water supply.

C. Project Description [from section 3 of PCN] The project will have three components:

Component 1 (Cost - US$ 6.63 million; Bank financing - US$ 5.96 million): Technical Assistance where: projects will be prepared for EU Structural Fund financing and institutional Public Disclosure Authorized strengthening will be provided at the central and local levels; and land use plans at the coastal municipalities will be updated;

Component 2 (Cost - US$ 69.85 million; Bank financing - US$ 55.89 million): Water Distribution Networks will be rehabilitated and institutional strengthening will be provided to Regional Water Companies (RWCs); and

Component 3 (Cost - US$ 60.63 million; Bank financing - US$ 48.50 million): Water Resources will be managed through the construction and rehabilitation of water supply dams. Bank financing will be contingent on the alternative analysis and meeting safeguard requirements.

D. Project location (if known) Component 1: Sites for project preparation are still to be determined. Land use plans will be updated in 12 municipalities (, , , Varna, , Byala, Nessebar, , , , , and )

Component 2: Six RWCs in: , , , , , and .

Component 3: Four dam sites: Studena Dam, Neikovtsi Dam (and municipality), Plovdivsti Dam, and Luda Yana dam.

E. Borrower’s Institutional Capacity for Safeguard Policies [from PCN] The Borrower, through the Ministry of Regional Development and Public Works (MRDPW), has satisfactorily implemented the Bank’s Water Companies Restructuring and Modernization Project (closed in 2002). In parallel to the preparation of the Municipal Infrastructure Development Project, the MRDPW is also preparing a transport project with the Bank and currently implementing a number of projects with the EU and other International Financial Institutions. Based on this project preparation and implementation experience, MRDPW has gained sufficient experience to address safeguard issues related to this project.

F. Environmental and Social Safeguards Specialists Ms Ruxandra Maria Floroiu (ECSSD) Ms Radhika Srinivasan (ECSSD)

II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered Yes No TBD Environmental Assessment (OP/BP 4.01) X The proposed completion of dams raises the overall EA category to "A", but the other investment components of the project (completion of water treatment plants and rehabilitation of distribution networks) are Category B. For these investments, solid EMPs including specific civil works contract clauses (e.g., application of technical standards) will be developed. Natural Habitats (OP/BP 4.04) X Adequate protection and maintenance of ecosystems downstream of the dams will be assessed to determine the relevance of this safeguard Forests (OP/BP 4.36) X It is unclear at this stage whether this safeguard will be triggered. Safeguard Policies Triggered Yes No TBD Pest Management (OP 4.09) X Cultural Property (OPN 11.03) X Given the possibility that proposed water companies might implement projects in cities with historic districts this safeguard might be triggered Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Land acquisition may be required for component 3. The impacts of the dam completion on resettlement will need to be fully assessed during project preparation. Safety of Dams (OP/BP 4.37) X Due to the investments in component 3, this safeguard is triggered. Projects on International Waterways (OP/BP 7.50) X All three components could potentially trigger this safeguard. Notification is required and will be facilitated through basin commissions. Projects in Disputed Areas (OP/BP 7.60) X

Environmental Category: A - Full Assessment

III. SAFEGUARD PREPARATION PLAN

A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared: 10/31/2006

B. For simple projects that will not require a QER, the target date for preparing the PAD-stage ISDS: 12/01/2006

C. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing1 should be specified in the PAD-stage ISDS. .

IV. APPROVALS

Signed and submitted by: Task Team Leader: Mr Sudipto Sarkar 07/07/2006 Approved by: Regional Safeguards Coordinator: Mr Ronald N. Hoffer 07/13/2006 Comments: Sector Manager: Mr Motoo Konishi 07/07/2006 Comments:

1 Reminder: The Bank’s Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in-country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.