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World Bank Document INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA10332 Public Disclosure Authorized Date ISDS Prepared/Updated: 15-Sep-2014 Date ISDS Approved/Disclosed: 13-Jun-2014, 17-Sep-2014 I. BASIC INFORMATION Public Disclosure Copy 1. Basic Project Data Country: Lebanon Project ID: P125184 Project Name: Lebanon-Water Supply Augmentation Project (P125184) Task Team Claire Kfouri Leader: Estimated 16-Jun-2014 Estimated 30-Sep-2014 Public Disclosure Authorized Appraisal Date: Board Date: Managing Unit: GWADR Lending Specific Investment Loan Instrument: Sector(s): General water, sanitation and flood protection sector (100%) Theme(s): Water resource management (80%), Other public sector governance (20%) Is this project processed under OP 8.50 (Emergency Recovery) or OP No 8.00 (Rapid Response to Crises and Emergencies)? Financing (In USD Million) Total Project Cost: 617.00 Total Bank Financing: 474.00 Financing Gap: 0.00 Public Disclosure Authorized Financing Source Amount Borrower 15.00 International Bank for Reconstruction and Development 474.00 Islamic Development Bank 128.00 Public Disclosure Copy Total 617.00 Environmental A - Full Assessment Category: Is this a No Repeater project? 2. Project Development Objective(s) Public Disclosure Authorized The project development objective is to increase the volume of water available to the Greater Beirut and Mount Lebanon area. 3. Project Description Page 1 of 14 Despite its relatively abundant water resources, Lebanon is significantly water-stressed. Groundwater is over-extracted by 200 million cubic meters (MCM) per year and water supply reaches as low as three hours per day in the summer season across many regions. Lebanon further only stores six percent of its total water resources, rendering it the country with the lowest dam capacity across the Middle East and North Africa (MENA) region. Water deficits across Lebanon are currently estimated at 353 million cubic meters (MCM) and are expected to increase to 425 MCM by 2035. Following a major revival of the Ministry of Energy and Water (MOEW) in 2006, and recognizing the need for urgent action, Government developed the National Water Sector Strategy (NWSS), with the objective of developing a comprehensive, multi-sectoral plan for improved water resources management across Lebanon. Government-led NWSS was developed by a team of qualified local Public Disclosure Copy experts, widely consulted and disseminated. The NWSS was approved by the Council of Ministers in 2012 and outlined national priorities in water sector investment projects, including large dams, irrigation and inter-basin transfers. Several key components of the NWSS are under implementation including investment in transformational infrastructure , development of a national water and sanitation tariff, and the enactment of a water sector public private partnership law. As one of the most densely populated regions in Lebanon, the Greater Beirut and Mount Lebanon (GBML) is directly and significantly impacted by existing water deficits. During the six month summer period spanning May – October, the GBML region enters into water crisis, wherein the majority of its 2.2 million residents receive less than three hours of potable water per day on average, and rely instead on over 20,000 private wells to supply their water needs. This in turn puts significant pressure on the coastal aquifer underlying Beirut, which, as a result, is exploited at unsustainable levels. The Beirut Mount Lebanon Water Establishment (BMLWE) is the Regional Water Establishment (RWE) responsible for provision of water services in the GBML area. Established through Law 221, the BMLWE operates as a commercial entity, and is headed by a Director General who also chairs the Board. The BMLWE’s service areas are divided into three principal categories namely: (i) the northern GBML; (ii) the southern GBML and (iii) Administrative Beirut. Southern GBML comprises four distribution zones (Zones A, B, C and D), housing an estimated 1.6 million people. During the six-month winter period spanning November - April, BMLWE’s springs and wells are recharged by snowmelt, precipitation and spring river discharge. During the six month summer period, as the water levels in the springs and wells sharply decrease, the BMLWE is only able to provide an average of three hours of water per day to its users. BMLWE embarked on an extensive program of investment, as agreed in the NWSS, to: (i) expand its water storage capacity; (ii) reduce the estimated 40% non-revenue water (NRW) by rehabilitating/ Public Disclosure Copy replacing distribution networks; (iii) introduce volumetric metering; and (iv) modernize utility operations. Further actions to improve the efficiency and sustainability of water services include the piloting of metering, and implementation of a sanitation tariff. Despite these demand management efforts, significant additional water supply is needed. The current water supply deficit is estimated at 90 MCM per year, and is expected to reach 180 MCM/year by 2035. As a result, BMLWE is in the midst of a significant investment phase which includes the completed Shabrouh Dam and the Bank- financed Greater Beirut Water Supply Project . However, these investments will only add 60 MCM of water supply, leaving a significant short term and long term deficit which requires additional investments. Following a series of public consultations and detailed technical analysis, an Analysis of Alternatives, commissioned by the Government, commended that GBML’s long-term water sustainability depends on the implementation of a program of coordinated investments and reforms Page 2 of 14 involving non-dam activities, as well as development of new water sources through a phased program of dam construction. Construction of a dam at Bisri was recommended as the immediate next step as part of a program for water supply augmentation to the GBML. Bisri was assessed to offer: (i) significantly larger volume of stored water; (ii) direct impact on water users in the southern regions of the GBML, where a large majority of GBML poor reside; (iii) relatively lower environmental and social impacts; and (iv) advanced level of detailed design which would enhance the rate of outcome delivery. The proposed project thus comprises: Public Disclosure Copy Component 1: Construction and construction supervision of Bisri dam and associated infrastructure (USD 391.81 million of which USD 305 million IBRD financing). Component 1 will finance: (i) the construction and construction supervision of the Bisri water supply dam, hydropower station (0.2 MWH) and access road; (ii) construction and construction supervision of the conveyor pipeline from the dam to the existing Joun reservoir; (iii) construction and construction supervision of a hydropower station at Joun (12 MWH); and (iii) construction and construction supervision of the expansion of the Ouardaniyeh water treatment plant (WTP). Water stored at the Bisri dam will be conveyed, treated and distributed through the tunnel, Ouardaniyeh WTP, and distribution network currently under implementation under the partially-financed GBWSP. Component 2: Sustainability of service delivery (USD 46.85 million of which USD 6.6 million IBRD Financing). Component 2 will finance priority activities, complementary to construction of Bisri dam, to ensure the long term sustainability of water service delivery across the GBML. Component 2 will finance: (i) technical assistance to the MOEW, BMLWE and CDR on the operation and maintenance of dams; (ii) technical assistance to the MOEW and BMLWE on management of BML water resources; (iii) technical assistance to MOEW and BMLWE in developing and carrying out awareness raising campaigns on the economic benefits of switching to the public water network and (iv) environment and social mitigation measures including the construction of sewerage networks in the upstream catchment villages, as described in the Environment and Social Management Plan (ESMP). Component 3: Project Management and Quality Assurance (USD 6.74 million of which 6.02 IBRD Financing): Component 3 will finance: (i) core Project Management Unit (PMU) within CDR to oversee project implementation; (ii) continued engagement of the Dam Safety Panel (DSP) as per Bank policy requirements; (iii) independent environment and social Panel of Experts; and (iv) Public Disclosure Copy supervision of the ESMP. Component 4: Expropriation and Resettlement Compensation (USD 170 million of which USD 155 million IBRD Financing): Component 4 will finance the costs of compensation of land acquisition of 570 hectares of land, as well as the cost of assistance for livelihood rehabilitation and monitoring of the Resettlement Action Plan (RAP) implementation. Total project resettlement costs are estimated at USD 170 million and include: (i) approximately USD 150 million for compensation of land acquisition and other assets related to implementation of the RAP; (ii) approximately USD 5 million in assistance for livelihood rehabilitation, benefit sharing program and monitoring of implementation of the RAP; and (iii) approximately USD 15 million in contingency funds 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The Bisri dam will be located approximately 17 kilometers inland from the coast of the Page 3 of 14 Mediterranean Sea and north east of the southern city of Saida. The Bisri dam will be a zone embankment dam with clay core, 70 meters high and 116 million cubic meter live storage
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