INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE

I. Basic Information Date prepared/updated: 09/01/2010 Report No.: AC5337 1. Basic Project Data Country: Lebanon Project ID: P103063 Project Name: LB- GREATER BEIRUT WATER SUPPLY Task Team Leader: Parameswaran Iyer Estimated Appraisal Date: August 9, 2010 Estimated Board Date: December 16, 2010 Managing Unit: MNSSD Lending Instrument: Specific Investment Loan Sector: Water supply (100%) Theme: Water resource management (80%);Other public sector governance (20%) IBRD Amount (US$m.): 200.00 IDA Amount (US$m.): 0.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: Borrower 30.00 Local Sources of Borrowing Country 140 .00 170.00 Environmental Category: A - Full Assessment Simplified Processing Simple [] Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [X] or OP 8.00 (Rapid Response to Crises and Emergencies)

2. Project Objectives The project development objective is to increase the provision of potable water in the project area, including the low-income neighborhoods of Southern Beirut, and to strengthen the capacity of the Beirut Mount Lebanon Water Authority in utility operations.

The key project performance indicators are: - Volume of additional potable water distributed in project area. - Piped household connections affected by rehabilitation works undertaken under the project. - New piped household connections resulting from the project intervention for poor households. - Percentage of customers in project area receiving 24/7 water supply.

3. Project Description The Greater Beirut Water Supply Project will comprise the following three components:

Component 1: Bulk Water Supply Infrastructure: Tunnels, Water Treatment Plant, Transmission Pipelines & Bulk Storage 1. Component 1 will comprise: (i) the construction of two water tunnel conveyors of 3 km and 21 km respectively; (ii) a water treatment plant; (iii) two transmission twin pipelines of 7.6 km and 2.7 km respectively; (iv) three storage reservoirs of 35 ML, 50 ML and 20 ML capacity respectively; and (v) all related equipment including pumps and valves.

Component 2: Supply Reservoirs, Distribution Network and Metering Component 2 will comprise: the construction of 16 supply reservoirs, dispersed within the project area; (ii) the replacement and/or installation of water supply network of about 187 km of pipelines as well as local reservoirs and pumping stations; (iii) the installation of 200,000 meters in specific pilot project areas; and (iv) the installation of bulk water meters.

Component 3: Project Management, Utility Strengthening and Studies Component 3 will comprise: (i) the set up and operation of a Project Management Unit (PMU) consisting of key specialist staff to implement, monitor and report on project progress; (ii) the procurement of utility strengthening systems, equipment and technical advisory services; and (iii) high priority national studies to be undertaken on key sector areas in alignment with the priorities set forth in the National Water and Sanitation Sector Strategy (NWSSS) under preparation by the Government of Lebanon.

4. Project Location and salient physical characteristics relevant to the safeguard analysis The Project has two main physical components reflecting Components 1 and 2 described above and in Figures 1 and 2 below:

Component 1 will comprise:

- Joun Regulation Structure: Set into the hillside by the existing adit access from the Joun tunnel to the hydro-electric power station. - Joun to Ouardaniyeh Tunnel 3 km in length. - Wadi Abou Yabes washout: For emergency discharge or routine maintenance. - Ouardaniyeh Water Treatment Works: including tunnel inlet and outlet portals and the water treatment works. Sludge treatment and disposal facilities will be associated with this works. A washout will be provided for emergency discharge. - Ouardaniyeh to Khalde tunnel: 21 km in length. - Inverted Siphon: in the Damour River with ventilation shafts at the hills to the south and north of the valley. A washout will be provided for use in emergencies and for maintenance. - A surge shaft in the hillside above Khalde: 2,800 mm diameter shaft in reinforced concrete with surface venting structure 7 m diameter in reinforced concrete, including improved access road. - Outlet portal in the hillside above Khalde: termination structure in reinforced concrete and upgraded access road. - Flow measurement and sampling chamber on the hillside above Khalde. - Twin Pipeline from Khalde portal to Khalde distribution chamber: 1.9 km long and 1,400 mm diameter. - Khalde distribution and connection chamber: in reinforced concrete containing isolating and regulating valves. Provides washout to local stream. - Twin Pipeline from Khalde distribution chamber to Hadath 90 and 125 reservoirs: 7.6 km long, 1,400mm diameter pipelines in ductile iron with connections to Hadath 90 and 125 reservoirs and local supply. - Hadath 125 reservoir: Storage reservoir, two compartments, effective volume 30,000 m3 in reinforced concrete with isolating valves and small surface kiosk, including access road. Connection to local distribution system. - Hadath 90 reservoir: Storage reservoir, two compartments, effective volume 50,000 m3 in reinforced concrete with isolating valves and small surface kiosk, including access road. Connection to local distribution system. - Pipeline from Hadath reservoirs to Hazmieh reservoir: 2.7 km long twin 1,300 diameter pipelines in ductile iron, with option for further extension for supply of treated water to Beirut. - Hazmieh 90 reservoir: Storage reservoir, two compartments, effective volume 20,000 m3 in reinforced concrete with isolating valves and small surface kiosk, including access road. Connection to local distribution system.

Component 2 will comprise:

- The construction of 16 reservoirs (between 500 m3 and 1000 m3 storage capacity each) and associated pumping stations distributed across the various distribution zones in the project area. - The replacement and/or installation of approximately 187 km of distribution network across the project area in Ein El Delbi, Southern Beirut and parts of the Metn area. - Installation of 200,000 household meters to operate on a volumetric tariff basis. - Installation of bulk meters at the reservoirs and distribution chambers.

5. Environmental and Social Safeguards Specialists Mr Mutasem El-Fadel (MNSSD) Ms Lene Natasha Lind (MNSSO) 6. Safeguard Policies Triggered Yes No Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Forests (OP/BP 4.36) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Indigenous Peoples (OP/BP 4.10) X Involuntary Resettlement (OP/BP 4.12) X Safety of Dams (OP/BP 4.37) X Projects on International Waterways (OP/BP 7.50) X Projects in Disputed Areas (OP/BP 7.60) X

II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: Environmental Safeguards

The proposed project has been examined extensively with its various components for more than a decade including the preparation of a comprehensive Environmental Impact Assessment (EIA) (dated April 1998). The EIA was revised by the Government of Lebanon (GoL) alongside previous studies and then updated into an Environmental and Social Impact Assessment (ESIA) in 2010. The ESIA examined the potential impacts on various indicators including ambient air quality; soil, landscape and visual amenity; water resources (groundwater and surface water bodies); biodiversity (fauna and flora); noise and vibration; archeology; and socio-economic and public community. Furthermore, it examined the entire life cycle of the project including water supply, treatment, storage, and distribution as well as wastewater collection and treatment.

An Environmental and Social Management Plan (ESMP) was also developed in 2010 including mitigation measures during the construction and operation phases, references to control guidelines and standards, responsibilities for the implementation and supervision of the plan, verification, monitoring and training requirements, record keeping and documentation requirements as well as the level of funding required for implementing the plan.

Public consultations have been carried out during the implementation of the EIA of 1998 and the revised ESIA of 2010. On both occasions, the public feedback was documented and taken into account in the EIA or revised ESIA preparation. The results of the revised ESIA were also presented in two public consultation meetings and corresponding comments addressed during the meeting and in the revised ESIA.

While it is anticipated that the Greater Beirut Water Supply Project will have significant long-term positive impacts on the economy, employment, infrastructure and services, water supply and sanitation, environment and public heath sectors among others, it will also have several negative impacts during its various stages that can be minimized with the proper implementation of an ESMP. The potential negative impacts were defined during both the construction and operation phases. In general, the potential impacts associated with the Project are not significant and are acceptable for this type of project with high anticipated socio-economic benefits.

The ESIA report has been disseminated with copies kept publicly accessible at CDR, MoEW, BMLWA, all concerned municipalities, and immediate stakeholders. The report has also been disclosed at the Infoshop.

Social Safeguards

The World Bank's Operational Policy (OP 4.12) on Involuntary Resettlement applies to this project and therefore a Resettlement Action Plan (RAP) has been prepared in accordance with OP.4.12 by the ESIA consultant on behalf of CDR and BMLWA and under the overall supervision of the Project Steering Committee. The main impacts of the project that give rise to resettlement are the following: (a) Acquisition of land for the purpose of building surface structures (infrastructure related to the conveyor, water treatment plants and storage reservoirs); and (b) Establishment of Easement right of ways (ROW) where the water conveyor is passing underneath the surface as well as restrictions on drilling on plots along the corridor of the conveyor.

Apart from losses associated with a minor agricultural business, there will be neither loss of any other business or income generating activities nor physical relocation of people. One farmer family working and residing temporarily at a greenhouse located within the treatment plant proposed site at Ouardaniyeh (who were aware of the status of the land when taking up their temporary engagement with the affected landowner), will be offered alternative employment and housing under the same conditions through an arrangement with the landowner. This arrangement has been confirmed in a letter to the World Bank that is attached to the RAP.

With respect to areas affected by ROW's there will be no actual land take or disturbance of the surface land use. However, there will be restrictions imposed on the lots depending on depth of the tunnel beneath, such as prohibition of placing deep foundation and prohibition of drilling wells.

The RAP includes land acquisition and additional measures related to all project components, as well as land acquisitions (mainly related to Component 1) that predates the World Bank's involvement 1/. The World Bank has had no involvement with these prior expropriations and this has been confirmed by the client in a letter to the Bank attached to the RAP.

Extensive consultations with affected communities, municipalities and stakeholders in project areas for both Component 1 and 2, have been undertaken by the consultant as part of the preparation of the ESIA, including individual face-to-face interviews and public consultations. The consultant has also distributed flyers that summarize the project and informs the resident population and stakeholders of public consultation sessions. Public consultations were undertaken by the consultant in accordance with Lebanese legal requirements for such consultations in connection with public works on May 12, and on July 27, 2010. In addition, the design consultant for Component 2, consulted with Heads of Municipalities in connection with deciding on the exact locations for additional reservoirs to be constructed for the distribution network in the suburbs of Beirut under Component 2. As a result of these consultations, decisions were made to reduce the scope of expropriation decrees for this component to a minimum.

Consultations with affected landowners and users will also be undertaken in accordance with Lebanese Expropriations Law at the local court offices housing the Expropriation Commissions for the relevant sub-district at appropriate stages throughout the land acquisition process. The results of already undertaken consultations are reflected in the RAP.

______1/ Between 1997 and 1998, the World Bank led several identification missions to Lebanon to assist the Government in the preparation of (i) the Awali Beirut Water Conveyor Project; and (ii) the Greater Beirut Water Supply and Wastewater Projects. On the Awali Beirut Water Conveyor Project, the World Bank was preparing to provide a partial guarantee to a BOT (Build Operate Transfer) scheme. This project however was abandoned due to technical and legal reasons. The Greater Beirut Water Supply and Wastewater Project was also abandoned due to CDR's insufficient project preparation capacity, at the time of project preparation, to prepare projects due to multiplicity of projects and donor priorities and limited number of qualified staff. The wastewater collection and treatment components of the proposed Greater Beirut Water Supply and Wastewater Project have since been financed and implemented by other donors.

2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The main potential indirect impact is associated with increased generation of wastewater and the production of sludge from the water treatment plant.

The wastewater will be managed at the planned treatment plants planned in Ghadir and Dora which have a combined capacity to serve a population exceeding 3 million equivalent and accommodate the proposed project.

The sludge will be dewatered and disposed of in a nearby existing landfill. The quantity of sludge generated will not compromise the design capacity of the landfill.

3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. The alternative to the conveyor in Component 1 is to continue the increased pumping of groundwater within the Greater Beirut project area however this would cause more salt water intrusion and continued severe shortage of potable water especially in the summer.

The proposed tunnel configuration was justified through a series of alternative analyses that were examined in the EIA of 1998 and the revised ESIA of 2010 based on both feasibility studies. The alternatives included the: (a) No-project option and continuation of unsustainable groundwater pumping and severe water shortage; (b) transmission options (tunnel with varied alignments and construction methods, pipeline with various materials - concrete, ductile, steel; (c) treatment plant location and technology; and (d) sludge management options. Various options for eventual supply augmentation infrastructure were also evaluated for compatibility with the proposed project.

4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. A full ESIA has been prepared by the GoL including a comprehensive ESMP with mitigation, monitoring, and institutional strengthening/capacity building components. The GoL has been involved in the implementation of similar measures in several World Bank-funded projects and has the capacity to do the same on this project.

The Ministry of Energy and Water (MoEW) is the administrative authority in charge of this project. It will have a Project Steering Committee (PSC) headed by the Minister (or his representative) with representatives from key stakeholders including the Ministry of Finance and CDR. The PSC will be assisted by an operations advisor, a monitoring & evaluation specialist and an administrative assistant. The Project Management Unit (PMU) which will act as secretariat to the PSC will be hosted by the BMLWA and will consist of a project manager, senior engineer, a procurement specialist, a financial management specialist, and environmental specialist, accountant and a social specialist.

The environmental and social specialists will be in charge of coordination, monitoring, and supervision of the ESMP as well as land acquisition and resettlement activities. Further training will be provided to staff involved or in charge of social and environment management during project implementation. In coordination with various direct stakeholders, the PMU will develop a capacity building and training program. One component of the program targets on-site contractors and supervising consultants regarding the preparation of a Construction Environmental Management Plans to ensure the proper implementation of the ESMP. Another component targets on-site employees and introduce them to the ESMP and its requirements.

A RAP has been prepared to ensure that all land acquisition and related measures are appropriately conducted with due resettlement assistance provided to owners and users of the land along the conveyor or distribution pipeline or on reservoir construction sites, and that potential adverse impacts are mitigated, in compliance with OP 4.12.

CDR's and BMLWA's capacity to plan and implement land acquisition is considered strong. Lebanese Law of expropriation has established general provisions for prior compensation of expropriated assets and easement right fees for restrictions imposed on affected properties. The RAP establishes procedures and mechanisms to address gaps between Lebanese expropriation legislation and the requirements of OP. 4.12, in particular as regards the mode of compensation payment for land acquisition and an affordable and accessible grievance mechanism for third-party settlement of disputes arising from resettlement.

The key institutions involved in this project are the independent Expropriations and Appeals Commissions, CDR, BMLWA and the Land Registry in the Ministry of Finance. CDR and BMLWA, as the Expropriating Authorities, will provide counseling and support to affected owners through their expropriation units and services.Replacement costs for resettlement and land acquisition as decided by Expropriation Commissions are being assessed based on the principle of equitable compensation interpreted to mean the applicable price on the day of the decision in accordance with the standards prevailing in the immediate neighborhood and taking into consideration whatever is necessary to restore the injured party to the state before the expropriation. Establishment of Right-of- Way (ROW) where the water conveyor is passing underneath the surface as well as restrictions on drilling on plots along the corridor of the conveyor will also be compensated as easement fees according to estimations by the Commission on a case by case basis depending on depth of tunnel and nature of restrictions.

There is also a consistently applied practice both within the CDR and the BMLWA, to make efforts to minimize expropriations and search for alternative sites, as expropriation costs for public works are considered high and in particular in prime property areas of Beirut.

Overall coordination and supervision for the implementation of the RAP will fall under the responsibility of the project coordinating PMU. The PMU will have a social and environmental safeguards specialist who will supervise and monitor safeguards implementation, as described above, as well as any third party settlement of disputes arising from resettlement as described in the RAP.

5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The proposed project Greater Beirut area comprises both rural and heavily urbanized areas, many of which are low-income areas. In general, the current water supply does not meet the needs of the residents and the infrastructure is inadequate. The population therefore engages in a number of coping strategies that vary according to the specific situation in the area.

Extensive consultations with the affected communities, municipalities and stakeholders as described above have been undertaken by the consultant as part of the preparation of the ESIA, including individual face-to-face interviews and public consultations. Public consultations been undertaken in accordance with Lebanese legal requirements for such consultations in connection with public works on May 12 and July 27, 2010. The consultant has also distributed flyers that summarize the project and informs the resident population and stakeholders of public consultation sessions.

Consultations with directly affected landowners and users, will also be done by the Expropriation Commissions in accordance with Lebanese law following the issuance of public expropriation decrees at the local court office housing the Commission in that sub- district.

Any interested party may also consult the relevant documents at the relevant government offices, in this case CDR or BMLWA.

The World Bank project team, including the social development specialist and representatives of the implementing agencies and involved consultants undertook field visits to the areas of project Component 1 (Awali-Beirut Conveyor, Ouardaniyeh Water Treatment Plant, transfer pipelines and storage reservoirs) where land acquisition will occur. Additional field visits to affected areas of Component 2 (distribution networks) were also undertaken during appraisal to screen for any additional resettlement issues.

The RAP was publicly disclosed on August 6th 2010 on the Internet Websites of CDR, BMLWA and was submitted to the World Bank's Infoshop on August 6th,2010.

B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 08/06/2010 Date of "in-country" disclosure 08/06/2010 Date of submission to InfoShop 08/06/2010 For category A projects, date of distributing the Executive 08/06/2010 Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 08/06/2010 Date of "in-country" disclosure 08/06/2010 Date of submission to InfoShop 08/06/2010 Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why:

C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting)

OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Sector Manager (SM) Yes review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the Yes credit/loan? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process Yes framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Sector Yes Manager review the plan? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Yes Infoshop? Have relevant documents been disclosed in-country in a public place in a Yes form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities Yes been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project Yes cost? Does the Monitoring and Evaluation system of the project include the Yes monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the Yes borrower and the same been adequately reflected in the project legal documents? D. Approvals

Signed and submitted by: Name Date Task Team Leader: Mr Parameswaran Iyer 08/30/2010 Environmental Specialist: Mr Hocine Chalal 08/30/2010 Social Development Specialist Mr Colin S. Scott 08/30/2010 Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Mr Hocine Chalal 08/30/2010 Comments: Sector Manager: Mr Alexander E. Bakalian 08/30/2010 Comments: Acting Sector Manager - Water Sector