The World Bank Teleferico -(Series 1) (P170609) Public Disclosure Authorized

For Official Use Only

Concept Environmental and Social Review Summary Public Disclosure Authorized Concept Stage (ESRS Concept Stage)

Date Prepared/Updated: 10/11/2019 | Report No: ESRSC00869 Public Disclosure Public Public Disclosure Authorized Public Disclosure Authorized

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BASIC INFORMATION

A. Basic Project Data

Country Region Project ID Parent Project ID (if any)

Peru LATIN AMERICA AND P170609 CARIBBEAN

Project Name Lima Teleferico San Juan de Lurigancho -(Series 1)

Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date

Transport Investment Project 4/2/2020 7/9/2020 For Official Use Only Financing

Borrower(s) Implementing Agency(ies)

Proposed Development Objective(s) The Series of projects (SoP) Development Objective is to improve mobility and accessibility to jobs and services in selected hillside urban settlements in Lima Metropolitan Municipality, MML by integrating them to mass transit services. The SoP is comprised of two urban cable car projects: San Juan de Lurigancho (SJL) and El Agustino (EA).

The PDO of the SJL Project is to improve mobility and accessibility to jobs and services of the hillside settlements in Public Disclosure Public the SJL and Independencia districts of MML by integrating them to the BRT and metro services.

Financing (in USD Million) Amount

Total Project Cost 123.00

B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No

C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] This proposed greenfield project is part of a cable-car program led by the Government of - GoP - and the Metropolitan Municipality of Lima - MML. The first of the series will implement the first urban transport cable car with the objective of increasing integration, accessibility and mobility for the District of San Juan de Lurigancho's - SJL -hilly, low income settlements. The SJL cable-car project consists of a 6.1 kilometer cable car line with 3 intermediate

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stations and two terminals. The cable car will increase access in SJL with connections to the Metropolitano BRT (northwest terminal of the project) and the Metro Line 1 (east terminal of the project). By generating the integration of urban transport between the BRT and Metro Line 1.

D. Environmental and Social Overview D.1. Project location(s) and salient characteristics relevant to the ES assessment [geographic, environmental, social] Location and area of influence: The San Juan de Lurigancho Cable-Car (SJL-CC) will be located in the Municipalities of Independencia and San Juan de Lurigancho, north of . Its 5 stations (with a footprint of approx. 1,800 to 2,800 m2 each, with towers occupying a footprint of around 36 m2 each) will be located at the following specific sites: S1: In front of El Naranjal Station, current terminal station of Lima’s Bus Rapid Transport (BRT) system, at the intersection of Tupac Amaru and Chinchaysuyo Avenues, in a highly urbanized area For Official Use Only S2: At the foothill of the Amancaes Mountain Range (AMR) west slope, within the 5 de Marzo settlement. The site currently serves as a small informal local cemetery, accommodating approx. 100 tombs S3: AMR west slope, within the Jesus de Nazareth settlement S4: AMR east slope, within the settlements of Vista Alegre, La Quebrada, Manos Unidas, and the Housing Associations of Canadá and Josué S5: Next to the San Carlos Station, current station of the Metro of Lima, at the intersection of El Sol Oeste and Proceres Avenues, in a highly urbanized area Environmental context: While the 2 terminal stations of the SJL-CC will be located in a highly urbanized area (with no presence of natural habitats), the 3 intermediate stations (S2, S3 and S4) will be located within the AMR, which harbors the “lomas de Amancaes”, and thus there is a potential overlap of these stations with the mentioned ecosystem. This ecosystem of coastal “lomas” is characterized by a patch of natural vegetation of approx. 200 ha immersed in an urban matrix, with unique endemic flora and fauna species. It provides important ecosystem services, such as water regulation and Public Disclosure Public erosion control. Despite of its importance, it is currently severely threatened by a disorganized urban growth. This ecosystem has been formally included within MINAGRI’s list of Fragile Ecosystems (RM 404-2013-MINAGRI), which are not considered National Protected Areas. Also, based on the reviewed information, the ecosystem is considered within 2 conservation proposals, at the local and regional level: “Lomas de Lima” Regional Conservation Area (promoted by the Municipality of Metropolitan Lima - MML) and “La Bella Durmiente” Ecotourist Reserve (promoted by the Municipality of Independencia). It should be emphasized that currently the area is not officially protected under national, regional or local regulations. Furthermore, locations of S2 and S3 seem to correspond to a government-owned area originally designated to serve as a 100 ha Park, and currently invaded. Finally, according to the available information, the AMR is characterized by unstable slopes and areas prone to landslides and falling rocks mainly due to seismic events and erosion processes. Social context: In relation to the social context, the project will take place in two districts with high levels of population, and with a high number of socioeconomically vulnerable people with a weak land tenure situation, particularly those living in the hills. These hills host some of the population expected to be displaced by the project, including physical and economic displacement. Most people whose houses are to be affected lack a formal title of property, and oftentimes don’t have access to basic services, which increases their level of vulnerability. In addition, many of the houses surrounding the project are in the hills and were built with weak structures in steep slopes subject to landslides, which could be exacerbated by construction works. Also important is the context of land trafficking in areas near the project, where

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the improvements brought by the project can lead to an increase in the value of the land and the potential intensification of disputes between local leaders, particularly in areas near stations S2 and S3. Citizen security around stations located in the hills could be a potential issue as well and should be accounted for when planning the project.

D. 2. Borrower’s Institutional Capacity The project was conceived by the Ministry of Housing, Construction and Sanitation (VIVIENDA), and will be transferred for implementation to the Municipality of Metropolitan Lima (MML). It is the first urban cable car project to be implemented in the city of Lima. The Project’s Implementation Unit (PIU) will be the Lima Toll Road Municipal Management Agency (EMAPE). EMAPE has experience in implementing high capacity toll roads, but has no previous experience in implementing cable car projects. EMAPE has some experience with World Bank financed projects, such as the First Metropolitano (Lima Urban Transport Project P035740) and the Metropolitano Extension (Lima Metropolitano North Extension Project P170595), currently under preparation. The PIU’s ability to manage social and environmental risks and impacts in accordance with the Bank’s ESF is low, and it lacks a specific unit to oversee the For Official Use Only social and environmental aspects of the project. To mitigate this risk, the PIU will need to hire additional environmental and social specialists to support this project, and its core team will receive training on the Bank’s ESF. The PIU also plans to formally establish a socio-environmental unit and a grievance mechanism unit. Furthermore, the Bank hired a consulting firm that conducted an assessment of the PIU’s capacity to implement environmental and social risk management measures in accordance with the ESF. The assessment concluded that the PIU has capacity to implement projects in compliance with the national legislation but that it will need strengthening to implement measures in accordance with the ESF. The capacity strengthening measures will be included in the Project’s Environmental and Social Commitment Plan (ESCP). Once construction is finalized, the MML will transfer the operation of the project to the newly created Lima- Urban Transport Authority (ATU). The ATU, established in December 2018, will integrate and absorb the currently fragmented BRT and Metro authorities: Protransporte (Instituto Metropolitano Protransporte) and AATE (Autoridad Autonoma del Tren Electrico), respectively. However, the ATU is not yet operational, it has no qualified staff nor

Public Disclosure Public experience on cable cars and transport integration. It is expected that its capacity will remain weak in its early years of operation. Even though ATU's first Board of Directors has been appointed in June 2019, and the government of Peru has allocated sufficient resources to start ATU operations, transitioning from the current institutional arrangements and building capacity at ATU is expected to occur over the next years. The World Bank is currently supporting the strengthening of the ATU to assure project sustainability in the long term (with PPIAF support), in three key areas: (i) governance for transport integration; (ii) international standards for urban transport authorities; and (iii) stakeholder communication. Given the complexity and the lessons learned from other urban transport projects supported by the World Bank in Lima, a robust engineering supervision firm will be hired to control the quality of works and progress. The project will also finance the operation and maintenance of the SJL-CC, conceived as an operations and maintenance contract to be competitively awarded to an experienced international cable car operator through a PPP scheme. Other key institutions involved include: Municipalities of San Juan de Lurigancho, Independencia and El Agustino, and the Ministry of Transport and Communications, among others to be identified during due diligence. The operational manual will define clear roles to actively involve these and other involved institutions, as well as the necessary interinstitutional agreements with participating entities, which will be specified in the Borrower’s ESCP.

II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS

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A. Environmental and Social Risk Classification (ESRC) High

Environmental Risk Rating High The environmental proposed risk classification for the project is High under the World Bank ESF. Classification responds to the wide range of expected risks and adverse impacts on the environment due to the complex nature of the project and sensitivity of the location, regarding the potential overlap of S2, S3 and S4 with the “lomas de Amancaes” ecosystem and conservation proposals, and instability of hills. These potential risks and impacts: (i) are mostly high in magnitude; (ii) are not expected to be reversible due to the project’s nature; (iii) can go beyond the actual footprint of the infrastructure, especially when considering cumulative impacts; (iv) are expected over natural and (potentially) critical natural habitats; and (v) mitigation may require complex measures, such as compensatory strategies (i.e., biodiversity offset). Based on the review of available documentation up to date (feasibility study and an “environmental classification report”, necessary by national law to classify projects and determine necessary For Official Use Only environmental assessment instrument, see ESS1 section), and discussions with the PIU, key anticipated environmental risks and impacts are related to: A. During construction of the project: i) Overall nuisances to the communities due to noise and vibration, dust, traffic congestion, waste, and visual disturbances. ii) Occupational health and safety: unskilled workforce, poor labor and working conditions and risk of occupational accidents. iii) Inadequate sourcing and transportation of construction material, as well as transportation and disposal of surplus materials and waste. (iv) Increased risk of third-party accidents due to increased vehicular traffic from the transport of construction materials and equipment, especially uphill. v) impacts on archaeological findings. vi) risks of landslides and consequent impacts on communities and security of workers. Public Disclosure Public vii) Erosion and consequent adverse impacts on the “Lomas de Amancaes” ecosystem. B. During operation of the project: viii) Emergency preparedness and response at the SJL-CC system and supporting facilities, including life and fire safety in case of seismic events, landslides, collapse of tension pylons, and other natural disasters and emergencies. ix) Community health, safety and security, including accidents of the SJL-CC users. x) Irregular maintenance and upkeep of the SJL-CC system and supporting facilities, including a lack of an adequate environmental management of solid and hazardous wastes and water effluents. xi) Potential incremental and cumulative impacts and risks associated with other current and future projects located in the same area of influence (including projects financed by the WB); this, in light of the SoP approach and considering other concurrent projects in the city that are directly and indirectly associated to this investment. xii) Cumulative impacts over the “Lomas de Amancaes” ecosystem due to a proliferation of invasions and occupations promoted by the construction of an access road to S2 (and potentially also to S3) and pedestrian accesses and side- walks. These impacts could lead to the deterioration and loss of the natural and endemic condition of the ecosystem. xiii) Erosion and consequent adverse impacts on the “Lomas de Amancaes” ecosystem. xiv) Impacts on underground water due to foundations of the tension pylons. xv) Impacts on landscape quality; visual adverse impact. xvi) Risk of landslides and collapse of tension pylons during operation: the area of intervention is characterized by unstable slopes and is vulnerable to earthquakes and landslides.

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Social Risk Rating High The social risk of this project is considered High. Potential adverse social impacts and risks attributable to the project include: (i) the need to relocate an informal cemetery with at least 100 grave markers; (ii) the land acquisition of at least 60 social units (43 houses and 17 commercial establishments); (iii) the acquisition of land from an unidentified number of people for the construction of an access road to carry out equipment and construction materials, particularly for S2 and its nearby towers, and potentially for S3 as well, which will remain in operation as an access path when construction is finished; (iv) risk of temporary restrictions in access to residential and commercial establishments, which could affect people’s livelihoods; and (v) risks of community health and safety, particularly considering the movement of vehicles and construction equipment and materials in a steep terrain. Visual impact is another expected adverse impact of the project. An indirectly related risk is the potential intensification of local disputes associated to land trafficking, particularly in areas near stations S2 and S3, where the For Official Use Only conflict between local leaders could become exacerbated as a result of the potential increase in the value of the land. These risks may be exacerbated by a context of high socioeconomic vulnerability among the inhabitants of the hilltops, particularly around S2, aggravated by the informal possession of the land they occupy, for the most part without access to basic public services, in addition to the risk of citizen insecurity around the cable car stations. The social and environmental management instruments to be prepared by the Borrower are expected to assess these risks and define measures, using the mitigation hierarchy, seeking to avoid or reduce the level of adverse impacts. In particular, there will be a need for a Resettlement Policy Framework (RPF) in accordance with ESS5, along with a process of meaningful consultation and the effective functioning of the project’s grievance redress mechanisms, based on a Stakeholder Engagement Plan (SEP) to be prepared in accordance with ESS10. There is also a risk associated with the interinstitutional coordination needed to manage the social impacts that could be generated and/or exacerbated by the project, for which the PIU will need to establish formal agreements before project effectiveness. The assessment of the Borrower’s social and environmental risk management capacity carried by an independent consulting firm on behalf of the Bank also indicated that the PIU will need to strengthen its Public Disclosure Public capacity to manage the environmental and social risks of the project in accordance with the ESF, and included recommendations that will need to be included in the project’s Environmental and Social Commitment Plan (ESCP).

B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered

B.1. General Assessment

ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: This standard is relevant. Following national legislation and procedures, the Borrower commissioned the preparation of an “Environmental Classification Report” of the SJL-CC project in 2015 and submitted it to the environmental department of VIVIENDA for the classification of the project according to national law. The project was classified under category II for which a semi-detailed Environmental Impact Assessment (EIAsd) is required (type of assessment required for projects with expected adverse impacts that are moderate in nature and can be mitigated), per Directoral Resolution (RD) 025- 2015-VIVIENDA/VMCS-DGAA. This RD also includes the Terms of Reference (ToRs) for the development of the corresponding EIAsd. The EIAsd has not been developed to date.

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The final technical designs of the SJL-CC will be financed as part of the project and will not be ready during the project preparation stage. Given the specificity of the cable car project and the small number of providers, the constructor will carry out the designs, construction and equipment of the SJL-CC to mitigate the risks of technical discrepancies. Given this situation, in order to achieve consistency with ESS1 requirements, a draft Environmental and Social Impact Assessment (ESIA) will be developed during preparation by an independent firm. This draft ESIA will provide inputs into the final design and alignments to minimize impacts, and enough information to the potential bidders of the environmental and social costs that must be included in the project budget.

The draft ESIA will be updated into a detailed ESIA during implementation, and prior to the start of construction, once the final designs are finalized. The detailed ESIA will be part of the EPC obligations and will be prepared in line with the final designs.

As part of the scoping mission, the Bank, together with the PIU, conducted a preliminary analysis of the EIAsd ToRs For Official Use Only and corresponding national framework and specific regulations, and relevant ESSs. As a result, the following thirteen specific areas were identified that will need to be addressed when developing the draft ESIA, in order to achieve consistency with both ESS1 requirements and national regulations:

1) Legal Framework: needs to identify obligations of the country directly applicable to the project under national law and considering relevant international treaties and agreements, as well as pertinent Environmental Health and Safety Guidelines (EHSGs), including World Bank’s guidelines, or other relevant Good International Industry Practices (GIIPs). 2) Institutional framework: needs to identify the necessary institutional arrangements (agreements, coordination methods, etc.) for the construction and operation of the project. 3) Analysis of alternatives: to compare feasible alternatives to the proposed project, including access road location, cable car technology, placement of the stations, etc., in terms of their potential environmental and social impacts. The analysis will also include re-routing options (if any), alternative transport options (if relevant, specially

Public Disclosure Public considering the safety of cable cars) and the no-project alternative. 4) Project description: needs to identify and describe: (i) associated facilities, per para. 11 of the Environmental and Social Policy and (ii) related activities and project components that support the construction and operation of the SJL- CC. 5) Baseline data and impact analysis: need to be relevant not only to the construction and operation of the components of the cable car system, but also relevant to the construction and operation of associated facilities (if any) and to the cable car system supporting activities and components, including a poverty distribution map, the informality situation, the conditions of the informal settlements. Need to cover all of the potential E&S risks and impacts identified in section II.A. 6) Cumulative impacts need to be identified and assessed, in light of the SoP approach and considering other concurrent projects in the city that are directly and indirectly associated to this investment considering, among others, the following projects: Peru Lima Metro Line 2 Project (P145610), Lima Metropolitano North Extension Project (P170595). 7) Social impacts: Analysis and identification of direct and indirect social risks and impacts, including changes in the value of the land and the expasion of settlements, the risk of gentrification, the movement of population, gender aspects, urban integration, and the intensification of levels of crime and violence around the stations, among others. 8) Local conflicts: information about the potential intensification of local disputes associated to land trafficking, particularly in areas around stations S2 and S3, and the annexes of the community of Jicamarca located near the

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project site, where the conflict between leaders, and between multiple owners of the same plots, could potentially become exacerbated as a result of the expected increase in the value of the land in the area. 9) Economic impacts associated with the construction and operation stages of the project, including those that could arise from project enclosures during construction, potential impacts on local three-wheel motorcycle taxi providers, and the risk of benefit capture by some groups that could lead to internal tensions. 10) Vulnerable groups: identification and analysis of vulnerable groups, including people with disabilities and landless occupants of the hilltops that could be subject to threats and physical displacement by land traffickers. 11) Gender: analysis of gender gaps, measures to address them, and the integration of gender aspects into the project, including the risk of sexual violence, harassment, and women’s security in general. 12) Personnel: appropriate allocation of social and environmental specialists and their roles, in a manner commensurate with the social and environmental risk management activities that will need to be carried out by the project. 13) Mitigation measures: should follow the mitigation hierarchy and, with the information available, describe general For Official Use Only measures to manage the identified potential risks and impacts. As per above, measures should be developed to address not only the construction of the cable car system and its operation, but also to address the associated facilities (if any) and the system’s supporting activities and components. Specific environmental and social management plans (ESMPs) will be developed to address each of the relevant standards.

To address the mentioned environmental and social areas and develop a draft ESIA that complies with ESS1 and relevant standards, the Bank will work with the Borrower in updating current ToRs (developed for the EIAsd according to national legislation, work that has not been developed to date). On the other hand, due diligence will inform how to best approach the management of the E&S risks for the operational phase as part of the structuring of the PPP contract. It is expected that the O&M concession terms will include a provision to follow WB/IFC standards.

A Risk Hazard Assessment will be also developed by the Borrower, to the full extent possible, to address the potential

Public Disclosure Public risk of landslides in the AMR, and corresponding consequences for the project, communities and workers.

The project will also support the development of the preliminary designs of the El Agustino CC (under Component 3 – although the construction of this CC will be supported under the second operation in the series of projects approach) and a consultancy for developing the corresponding draft ESIA. The development of these preliminary designs will be carried out once the construction of the SJL cable car begins. The SOP approach will ensure that activities for the second series (El Agustino) are prepared in line with the SJL E&S analyses, mirroring the lessons learned and policies adopted by the client as part of SOP 1.

Areas where “Use of Borrower Framework” is being considered: None

ESS10 Stakeholder Engagement and Information Disclosure This standard is relevant.

Stakeholder engagement is a key process to ensure the social sustainability and promote the viability of the project, which needs to be planned based on a stakeholder mapping exercise to identify the key parties involved and their

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relationship to the project. Some key actors preliminarly identified are the local municipalies and other local authorities, the population to be affected by the construction activities (including the population to be displaced and the relatives of people whose remains are located in the informal cemetery planned to be relocated as part of the project), the expected users of the cable car system, and key sectors that will need to be included in the consultation process to ensure their views are taken into account, such as representatives of people with disabilities, women’s organizations, neighborhood associations, local businesses located in the project’s area. The population of the districts where the project will be implemented, dissagregated by socioeconomic levels and gender to ensure representativeness, will be also key to promote a sense of ownership of the project. The consultation and stakeholder engagement activities will also include interested groups in the conservation of the Lomas ecosystem, including organizations such as Asociacion de Protectores Ambientales de la Flor y Lomas de Amancaes, Serfor, ELAW, and relevant specialists from universities and academia that may have specific knowledge on this ecosystem.

Regarding the consultations for the cable car project, the Borrower conducted two public consultation events in For Official Use Only October 2014. One consultation event was held in the district of Independencia, which had 106 participants from 31 social groups. The other consultation event was carried out in the district of San Juan de Lurigancho, which had 42 participants representing 18 social groups. These groups included representatives of housing associations and people living in nearby settlements in the direct and indirect area of influence of the project, officials of government agencies, civil society organizations, and local authorities, including the participation of the mayor of the district and members of the city council. Both men and women had an active participation in this event. Participants had the option to ask questions at the events and also to fill out suggestion forms indicating their opinion and suggestions for the project, which they did. There were also surveys filled out by representatives of local organizations. These consultations are documented in the annexes of the classification report prepared in 2014.

The main issues raised during the consultation events of 2014 focused on topics like the project’s timeline, potential local development opportunities in the project area that could bring benefits to the local residents, the costs of using

Public Disclosure Public the cable car service, the relocation of the cemetery, the need for barriers near stations and towers to prevent land erosion and slidings, citizen security around the stations, accessibility for people with disabilities and the elderly, the need to reduce the number of houses affected, the need to keep affected people informed about the process in venues close to the project area, the safety of the cable car operations,the importance of anti seismic planning, the need for stations in the highest parts of the hills to favor the accessibility of its residents, potential employment opportunities, access roads to the stations, the possibilities of adding stations, the importance to also consider building similar cable car solutions in other parts of the city, among others.

Since these consultation activities happened more than four years ago, the Borrower will need to conduct a new round of consultations during project preparation, and define the ones to be carried out during project execution. The PIU will prepare, disclose, and consult a draft Stakeholder Engagement Plan (SEP) consistent with ESS10 prior to appraisal, which will (i) summarize the main points of the consultations carried out in 2014, (ii) detail the consultation and stakeholder engagement activities to be carried out during preparation, and (iii) plan the consultation, socialization and information activities to be carried out during the construction phase of the project. The SEP will need to include adequate budgeting and provisions for targeted consultation and engagement activities for women, youth, vulnerable, and disadvantaged groups. The SEP will also include the project’s grievance mechanism at the PIU, which will need to have a budget and be able to integrate the information received from different channels.

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The concerns of the stakeholders raised in the initial consultation events are already being taken into account in the planning process, including the adjustments being considered to the technical designs of the project. Examples of actions to address the issues raised in the initial consultations are the inclusion of a universal design criteria in the design of the stations and its surrounding areas, the subscription of formal agreements with the national police to provide citizen security, clear procedures for labor relations with contractors, a participatory process with the parties interested in the relocation of the cemetery, the need to reduce the numer of displaced people as part of the land acquisition process as a result of the analysis of alternatives, among others. To support the Borrower on the implementation of ESS10 the Bank will provide substantial support on the scope and application of the ESSs as they apply to the project throughout the project preparation and implementation stages.

Regarding public disclosure, the environmental and social instruments will be prepared in Spanish, a language that is understandable to the project stakeholders. These studies will be publicly disclosed and made available in the Borrower’s website and Bank’s external portal. In addition, these instruments will be sent by email to the participants For Official Use Only in the new round of consultations and to representatives of the local government in the area of the project. Physical copies will be also available at the local municipalities in the area of influence of the project, including notes on their corresponding information boards announcing their public availability.

The Borrower will need to carry out public consultations with the relevant stakeholders during the project’s preparation stage. These consultations will need to be initiated before project’s appraisal and will continue until the end of the project’s appraisal. Consultations will include the project scope, its social and environmental impacts, the mitigation measures developed to mitigate the impacts, and the draft versions of the environmental and social instruments prepared and disclosed, as a minimum, one public consultation event should be carried out in each of the districts in the (direct and indirect) area of influence of the project, one consultation with the population located near S2, a period of virtual consultation of the draft environmental and social instruments (sending formal communications requesting comments to published versions of the draft documents to at least NGOs, local

Public Disclosure Public universities, and government agencies), and thematic consultation events with at least the following groups: people potentially subject to physical displacement, people subject to economic displacement, people and organizations concerned about the potential relocation of the cemetery, organizations interested in the lomas de Amancaes ecosystem, entities interested in labor conditions, representatives of the annexes of the Jicamarca community located close to the project’s area, organizations working on topics related to people with disabilities, representatives of local women’s organizations, and a separate event with the elderly and another with the youth (which could be a live virtual event).

B.2. Specific Risks and Impacts

A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions This standard is relevant. The standard recognizes the importance of promoting sound worker-management relationships and enhance project development benefits by treating workers fairly and providing safe and healthy working conditions. Project workers will include direct workers, contractors, and subcontractors. Community workers will not be hired or involved in project activities. Since the project will take place in a large metropolitan area, it is expected that most labor will be

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supplied locally, and no major issues associated with labor influx are anticipated. Local labor laws are aligned with ESS 2 regarding child and forced labor, so the project will not hire children nor engage in forced labor. Workers’ rights are protected by government organizations such as the Ministry of Labor and Employment Promotion, and the compliance with labor laws is carried out by the National Superintendence of Labor Inspection (SUNAFIL).

The Borrower will prepare a Labor Management Procedure (LMP) for the project in line with para. 9-13 and 31-32 of ESS 2, which will set out the way in which all types of project workers will be managed in accordance with the requirements of national law and ESS2. The LMP shall describe the working conditions and management of worker relationships, the terms and conditions of employment, provisions for non-discrimination and equal opportunity, worker’s organizations and freedom of association, occupational health and safety for workers, provisions to protect the workforce including child labor and minimum wage, and the prevention of forced labor. The LMP will further ensure that the health and safety of workers, especially women, are given adequate attention and equal labor opportunities. It will also have the details of the grievance mechanisms (GM) available for workers and the roles and For Official Use Only responsibilities for monitoring such workers. Likewise, a Workers Code of Conduct, with obligations of all workers involved in the project, will be prepared and adherence to the Code of Conduct will be a condition of employment for all workers. The LMP, GM and the Code of Conduct will be part of the bidding documents for construction.

To prepare the LMP the PIU shall conduct a review of the regulatory framework and labor regulations. Some topics preliminarily identified to be included in the LMP are the following:

1. Legal framework: including (i) the existing labor laws and regulations of the country, and laws on occupational health and safety for workers; (ii) the international agreements related to labor, particularly those subscribed with the International Labor Agreement (ILO); and (iii) the labor procedures adopted at the level of the municipalities involved, including laws applicable for the staff of the implementing agencies, contractors, subcontractors, and primary suppliers. This review shall take into account the opinion of specialized government agencies such as the

Public Disclosure Public Ministry of Labor and Employment Promotion, SUNAFIL, among others. 2. Expected workers: number of workers anticipated, types of work, characteristics of the workers, etc. The LMP will also need to include the labor procedures applicable to civil servants involved in the project implementation or oversight workers of the PIU, but with a more limited scope, as outlined in in paragraphs 17-20 and 24-30 of ESS2. The provisions for civil servants will also include the prohibition for children under 18 years old and forced labor to be employed or engaged in connection to the project, , and occupational health and safety procedures to ensure safe working conditions, as specified in the national laws and regulations. 3. Employment contracts: hiring eligibility (minimum age, migrant workers), types of contracts, benefits for each type of contract (health insurance, life and disability insurance, leave entitlements, sick leave, maternity leave). 4. Hiring procedures: probationary periods, training, social inclusion (gender equity, disability inclusion) provisions, limitations of short-term contracts before enrolling employees, etc. 5. Compensation: minimum wages, provisions on overtime and night work, and work on holidays, payment deadlines, payments to suppliers. 6. Health and safety: key labor risks, occupational health and safety (OHS) training, emergency response and preparedness, personal protection equipment, gender-specific risks, risks of accidents, crime and violence risks, sexual harassment, etc. 7. Working conditions: normal working hours, Code of Conduct, disciplinary actions, record keeping. 8. Collective bargaining: freedom of association, group complaints, retaliation prevention.

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9. Termination procedures: reasons for dismissals, notice periods, severance pay, etc. 10. Labor grievances: labor complain mechanism, appeals, dispute resolution procedures, mediation services. 11. Provisions to strengthen the labor management procedures in the project and the executing unit, as needed, including the operations manual, internal procedures of EMAPE, and other relevant documents. 12. Monitoring and supervision: responsible personnel, verification and reporting, resources needed.

The draft version of the LMP will be prepared, disclosed and consulted prior to appraisal, and a revised version of this document, incorporating the results of the consultations, will be a condition for project eligibility.

ESS3 Resource Efficiency and Pollution Prevention and Management This standard is relevant.

For Official Use Only Energy and Resource efficiency: given the specificity of the cable car project and the small number of providers, to mitigate the risks of technical discrepancies the constructor will carry out the designs, construction and equipment of the SJL-CC. As part of the Bank’s due diligence issues that need to be taken into account regarding energy efficiency will be identified to ensure these are considered in corresponding design and incorporated as part of the Borrower’s overall design procedures for this and future cable car systems. Contractor’s ToRs will specify that the final design should include energy efficiency considerations, specifically energy and water consumption efficiency, as well as considerations to minimize waste and prevent pollution during construction and operation.

For the construction and operational phases of the SJL-CC, electric energy will be supplied by the national grid, although project designs will have considerations for stations and cabins to incorporate solar panels to maximize the use of renewable energy. There will be one stand by diesel generator available to support the operation of this cable car system in cases of need. Water needs for construction will be limited, and provided by the public water network.

Public Disclosure Public During operation, each station of the SJL-CC will be provided with 3 water tanks that will be connected to the public water network, one for domestic use, one for irrigation, and one for fire emergencies. The EPC contractor will develop a Resource Consumption Monitoring and Management Program applicable to the operational phase of the project, which will be part of the detailed ESIA.

Use of materials for construction: materials will be sourced by direct purchase from quarries. According to the feasibility study, these will be purchased from commercial quarries located in Huachipa, La Molina, and Ate. The PIU will make sure that the quarries to be used are duly accredited and have the necessary permits in force. In order to ensure an adequate sourcing and transportation of construction material from quarries, the PIU will prepare a draft Sourcing and Transportation of Construction Materials Management Plan, with standard and general mitigation measures for the sourcing and transportation of construction materials, which will be part of the draft ESIA. This plan will also include general considerations for an adequate transportation of materials using the access road to be constructed by the project to reach S2, and potentially also for S3.

Waste, Wastewater, and Hazardous Materials Management: Wastewater from sanitary facilities (both for construction and operational phases) of the SJL-CC will be discharged into the public sewerage network. Evacuation systems will be implemented at each station, which will divert wastewater by gravity, or impulsion, for which the necessary connections will be implemented. Standard management measures will be described to ensure there is no

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soil, water, and/or air contamination from the waste generated by construction activities, mainly demolition and earthworks, including the transportation and disposal of waste and surplus materials. Even though a significant use of hazardous materials related with the construction of the cable car system is not expected (hazardous chemicals include mainly fuel for the construction vehicles, oil and lubricants for the vehicles and equipment, cement additives, and batteries), standard measures for their adequate use, storage, and management in case of spills will be developed. The Borrower will prepare a draft Waste Management Plan for construction of the SJL-CC in line with para. 17-20 of ESS3. This draft plan will be part of the draft ESIA.

Non-hazardous solid waste generated during the operational phase of the SJL-CC include general domestic waste, cleaning waste and waste left in the cable cars. A Waste Management Plan for the operation of the SJL-CC will be prepared by the EPC contractor for the adequate environmental management of solid and hazardous wastes and water effluents at the cable-car systems and supporting facilities. This management plan for operations will be part of the detailed ESIA. For Official Use Only GHG accounting: As part of project preparation, the team will assess the (gross and net) GHG base line of the project, under the current WB guidelines. An indicator will be included in the results framework to be assessed during project implementation and at the end of the project. In addition, GHG reduction will be included as an economic benefit in the economic analysis of the project. The estimation will be finalized prior to Bank Approval.

ESS4 Community Health and Safety This standard is relevant. Key risks and impacts related to community security, health, and safety are linked: to (i) civil works, (ii) traffic safety during the construction of the cable car system, (iii) security, health and safety of users of the system during operation, and (iv) risk of landslides and other natural disasters. Public Disclosure Public (i) Community health and safety during construction: clear demarcation of construction work areas and control of access by use of fences, as well as control of construction vehicles and awareness campaigns for surrounding communities during construction will be necessary. Likewise, ambient noise, dust, soil movements and vibrations will need to be closely monitored in the project areas to minimize community nuisance and risks. These measures and procedures, together with the necessary inter-institutional arrangements, will be laid out and assessed by the Borrower and the Bank to assure compliance with ESS4 during preparation. These measures will be included in a draft Community Health and Safety Management Plan for construction, which will be prepared by the Borrower as part of the draft ESIA.

(ii) Traffic Management and Road Safety during construction: an increase in traffic congestion is expected during construction, reason why a draft Traffic Management and Road Safety Plan, in line with para. 10-13 of ESS4, is necessary as part of the draft ESIA. A draft plan, to be prepared by the Borrower will outline standard mitigation measures for: operation of intersections to improve traffic flow and particularly enhance road safety, strategies to ensure that trucks unloading equipment/material do not unnecessarily cause traffic jams and so equipment and supplies can be safely off-loaded, sensibilization and early communication measures, among others. The construction and use of an access road to reach S2 (and potentially S3) will be also considered in the draft Traffic Management and Road Safety Plan, which will propose the necessary standard safety measures for the type of transportation activities

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expected to be carried out during construction. As part of the due diligence, the team will coordinate with the Borrower to ensure that project designs provide draft traffic management plans for vehicles and construction equipment, including considerations to mitigate risks related to road traffic accident.

(iii) Community health and safety during operation: the most common community health, safety and security risks identified during the operation of cable cars such as the SJL-CC are associated with (a) the safety of pedestrians accessing the first and last stations of the SJL-CC, since these will be located in highly urbanized areas with avenues and streets of regular transit; (b) the security and safety of users of the system in case of accidents and crimes. The EPC contractor will prepare and disclose a Security, Health and Safety Management Plan for operation of the project, and included as part of the detailed ESIA. Also, as part of the project documentation, appropriate standards for cable- car design, maintenance, and safe operation should be followed and included in specifications as well as operational phase manuals and training. The cable car system will be designed and implemented with 100% accessible technology for persons with disabilities. Accessibility design features include step-free stations, boarding areas, and For Official Use Only cabins; pod tactile tiling; standardized color coding for signs and information; braille maps and wayfinding signage; and audio announcements. Specifically, for boarding, the cable car technology requirements include features that allow doing full stops to selected cabins to ease boarding, if required. Regarding operations, the service quality manual will include requirements to carry out the boarding process with permanent assistance and supervision by adequately trained personnel, who will support and assist persons with special needs. During the due diligence, the bank will also explore opportunities to engage other public organizations and local municipalities to carry out accessibility improvements in the areas surrounding the stations. As part of the due diligence, the team will coordinate with the Borrower to ensure that provisions are included in the bidding documents to require the cable car operations to comply with WB/IFC standards, and to ensure appropriate maintenance and safe operations.

(iv) Risk of landslides, falling rocks and other natural disasters: mainly due to seismic events and erosion processes,

Public Disclosure Public will be assessed as part of an independent Risk Hazard Assessment (RHA) to be developed by the Borrower to the full extent possible, in line with para. 20 of ESS4, particularly considering the instability of the houses in the hills and the potential impacts associated with vibrations during construction. Gaps will be filled once final designs are available. Based on the results of the RHA, the Borrower will prepare a draft Emergency Response Plan (ERP) for both construction and operation. General mitigation measures could include clear marking of the exits at the stations, smoke detectors, alarm system, fire exits, evacuation plan posting, emergency lights, a communication protocol with the local authorities, and other requirements set out in para. 21 of ESS4. Finally, the seismic/structural safety of the design of the SJL-CC system will need to be reviewed by the PIU’s engineering department and approved by local authorities.

ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement This standard is relevant.

The project will involve (i) the need to relocate an informal cemetery with at least 100 grave markers; (ii) the land acquisition and displacement of at least 60 social units (43 houses and 17 commercial establishments); (iii) the acquisition of land and displacement from an unidentified number of people for the construction of an access road,

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particularly to reach S2 and its nearby towers; and (iv) risk of temporary restrictions in access to residential, commercial, and mixed-use establishments, which could affect people’s livelihoods.

The project will require the relocation of a cemetery with at least 100 visible burial markers, which include a combination of grave markers, headstones, and tombstones. Preliminary information indicates that this is an informal cemetery, since it does not appear in the national registry cemetery kept by the Ministry of Health’s General Direction of Environmental Health (DIGESA). This cemetery was built on public lands used by members of the settlement 5 de Marzo. These lands will be needed to build S2, Tower 11, and Tower 12. Given the social sensitivity associated to the relocation of cemeteries, its relocation process will need to be conducted in consultation and close coordination with the relevant stakeholders, including the living relatives of the deceased, the nearby population, local authorities, and the population near the potential new cemetery site, among others. The new cemetery would also need to comply with applicable norms, including Law N° 26298 of Cemeteries and Funerary Services, and its associated decree Nº 03-94-SA, among other applicable provisions. Given the complexity associated to the For Official Use Only exhumation and relocation of human remains in clandestine cemeteries, there will also be a need for a legal review to ensure full compliance with the applicable legal procedures in the national law. The land acquisition process for the new cemetery will need to comply with the provisions of ESS5. Being a place of simbolic significance, since the remains of the deceased are linked to religious beliefs and cultural practices of the local population, the cemetery is considered a place of intangible cultural heritage, and therefore also covered under the provisions of ESS8.

According to the socioeconomic baseline prepared by an independent consulting firm in 2015, as part of the preliminary studies for this operation, the civil works of the project will require the relocation of approximately 43 houses of mostly socioeconomically vulnerable people, the majority of which lack a formal property title and access to basic public services. While 14% of them have a title of property to their houses, and 23% of them were reported to be in the process of obtaining one, almost two thirds of them (63%) lacked formal property titles. The project will also involve the physical and economic displacement of 17 commercial establishments. Almost all of these businesses

Public Disclosure Public have formal property titles and an intense economic activity. The economic impact associated to their relocation may be significant, not only because of idle time and transition costs but mostly due to the challenges associated with finding alternative locations where they can continue their commercial activities with similar levels of income. These small businesses are mostly concentrated in the area where S1 is planned to be built.

In addition, the project will need to acquire land and potential displacement of an unidentified number of people for the construction of an access road to carry out equipment and construction materials, particularly for S2 and its nearby towers, and potentially for S3 as well. The exact number of people affected will not be known until the designs are finalized, it will happen after the project has been approved by the Bank’s Board of Directors. This is because the preparation of the final technical designs and the construction works will be part of the same bidding process.

There is also a risk of temporary restrictions in access to residential and commercial establishments, which could affect people’s livelihoods. The project will also need to acquire unoccupied parcels of land next to Towers 20-23, 26 and 27, in addition to the use of public lands in median strips (central reservations or median divider islands).

Given that the final design of the project will be prepared during project execution, because the planned bidding process includes both design and construction of the cable car, to mitigate the potential impacts and risks of the

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project the Borrower will prepare a Resettlement Planning Framework (RPF) in accordance with the requirements of ESS5. The draft version of the RPF will be prepared, disclosed and consulted prior to appraisal. The draft RPF will include the procedures, provisions, and guidelines for the preparation of specific Resettlement Action Plans (RAPs), which will address the different impacts associated to this standard. A census of the affected parties will be also carried out and included in the RPF prior to appraisal, along with consultations with the affected parties and the determination of a cutoff date for resettlement-related benefits. The RPF and RAPs will need to take into account the socioeconomic vulnerability of the affected population to avoid the risk of impoverishment, particularly among the people who do not hold property titles to the land they occupy, ensuring that the resettlement assistance to be provided are adequate to restore their living conditions, including the analysis of options beyond cash compensation.

The institutional arrangements for resettlement planning and implementation of the RPF and RAPs are not known at this point but will be confirmed as part of the due diligence, including the financial responsibilities. However, due to provisions in the Peruvian government's regulatory framework, which set as maximum compensation amounts the For Official Use Only ones of the official appraisals (plus a 20% incentive for accepting direct negotiations), to achieve replacement value in the compensations as required by ESS5, loan proceeds may be needed to supplement local funds.

An important component of the RPF will be the analysis of alternatives. Using the mitigation hierarchy, the first level of engagement will be to explore opportunities to reduce the impacts of the project described before. For instance, moving the location of S1 to the median strip or the opposite side of the street could avoid the need to relocate 17 commercial establishments identified as subject to displacement. Similarly, finding an alternative location for S2 could avoid the need to relocate the informal cemetery. The RPF will make a reference to the analysis of alternatives carried out in the ESIA and its relevance for the resettlement process. The land acquisition impacts of the access road, whose preliminary design is still pending, will be also included as part of the analysis of alternatives to mininize the need for involuntary displacement. During the identification mission, the Bank already started discussing with the Borrower the importance of analizing alternatives for these two key points. As part of the due diligence process, the

Public Disclosure Public Bank will continue supporting the Borrower in this process. The Task Team will verify that the RPF complies with the requirements of ESS5. The RPF and the ESCP will also need to include specific provisions to update its contents once the technical designs are finalized and the affected people whose land will need to be acquired for the cable car and its access road to S2 are known.

ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources This standard is relevant.

The three intermediate stations of the SJL-CC (S2, S3 and S4) will be located within the Amancaes mountain range, which harbors the “lomas de Amancaes” ecosystem, and thus there is a potential overlap of these stations with the mentioned ecosystem. This ecosystem of coastal “lomas” is characterized by a patch of natural vegetation of approx. 200 ha immersed in an urban matrix, with unique endemic flora and fauna species. It provides important ecosystem services, such as water regulation and erosion control. Despite its importance, it is currently severely threatened by a disorganized urban growth and proliferation of invasions. This ecosystem has been formally included within MINAGRI’s list of Fragile Ecosystems (RM 404-2013-MINAGRI) and, based on the reviewed information, the ecosystem is considered within 2 conservation proposals, at the local and regional level: “Lomas de Lima” Regional Conservation Area (promoted by the Municipality of Metropolitan Lima - MML) and “La Bella Durmiente” Ecotourist

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Reserve (promoted by the Municipality of Independencia). Furthermore, based on a meeting with the PIU and information provided by the Superintendence of State Goods (SBN), locations of stations 2 and 3 correspond to a government-owned area originally designated to serve as a 100 ha Park, and currently invaded. It should be emphasized that currently the area is not protected under national, regional or local regulations.

The Borrower will develop a draft Environmental Assessment and Management Plan of the “Lomas de Amancaes” as part of the project’s draft ESIA, which will cover the following seven main aspects:

(i) Characterization of baseline conditions, in line with para. 11 of ESS6, and determination if the limits of the “lomas de Amancaes” ecosystem overlap with the project area. (ii) Determination if the “lomas de Amancaes” fulfills the criteria to be considered a Critical Habitat (CH) per para. 23 and 26 of ESS6. The Borrower will determine if there is an overlap with the previously mentioned conservation proposals and confirm that the area of intervention is outside the limits of the “lomas de Amancaes” fragile For Official Use Only ecosystem as determined by RM 404-2013-MINAGRI. (iii) If considered a CH, the assessment will include an analysis of whether the conditions set out in para. 24 of ESS6 are satisfied. (iv) Assessment of direct, indirect and cumulative project-related impacts on the ecosystem and the biodiversity it supports, mainly in relation to habitat deterioration and loss due to the proliferation of invasions and occupations promoted by the construction of project-related road accesses, pedestrian accesses and side-walks. (v) Development of standard management measures in accordance with the mitigation hierarchy. (vi) If: (a) it is determined that the “lomas de Amancaes” is a critical habitat that could be affected by the construction and operation of the project, and/or (b) significant risks and adverse impacts on biodiversity are identified, a draft Biodiversity Management Plan (rather than an environmental management plan) will have to be developed by the Borrower. (vii) The assessment will take into account the status of the previously mentioned 100 ha Park, its objectives, and

Public Disclosure Public government plans for its maintenance and use. (viii) If significant residual adverse impacts remain (after measures for the avoidance, reduction and mitigation of impacts are implemented), the Borrower will propose a biodiversity offset, in line with para. 15-18 of ESS6.

The assessment will evaluate the potential need and feasibility for integrating the cable-car system with the “lomas de amancaes” ecosystem, which could present an interesting development opportunity in a city like Lima which has limited green areas.

Based on the above, the draft Environmental Assessment and Management Plan of the “Lomas de Amancaes”, to be completed prior to Appraisal, will help determine/conclude if: (i) the three intermediate stations of the SJL-CC do overlap with the “lomas de Amancaes” ecosystem; (ii) additionally, these stations also overlap with the conservation proposals previously mentioned; (iii) the “lomas de Amancaes” ecosystem fullfils the criteria of CH; (iv) potential induced impacts on the hillsides and remaining habitat will occur; (v) a Biodiversity management Plan is needed; (vi) a biodiversity offset is necessary. These results will be reflected in the ESRS Appraisal stage. Also, based on the available information, S3 and S4 will be located in an area classified for “Protection and Landscape Management”, according to the Zoning Map of the MML. As part of the Bank’s due diligence, this overlap will be confirmed, as well as if the corresponding land use category allows for the construction of infrastructure with the characteristics of the project stations.

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Finally, considerations on the installation of physical barriers to (a) place boundaries for settlement, and (b) stabilize terrains prone to slides will be included in the design of urban infrastructure in the area of influence of the project, particularly where the Ministry of Housing has identified the need to limit further (informal) urban development.

ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities This standard is not relevant.

This project will be implemented in an urban area, and no distinct social and cultural groups possessing the characteristics defined in ESS7 have been identified in the area of the project

For Official Use Only

ESS8 Cultural Heritage This standard is relevant.

Although the project is not located in an area with significant cultural or historical value, chance findings could occur during earthworks and construction activities. The Borrower will develop a draft Chance Find Procedure in line with national legislation (mainly SD. N° 003-2014, Guidelines for Archaeological Interventions) and para. 11 of ESS 8. The procedure will highlight the need for contractors to employ an archaeologist to monitor the excavation/construction works and will be part of the draft ESIA.

Public Disclosure Public In addition to these archaeological sites, there is a cemetery in the lands planned to be used for S2, Tower 11, and Tower 12, in the District of Independencia. This cemetery has been in use for many years and belong to the settlement 5 de Marzo. The relocation of this cemetery will be managed as one of the activities of the Resettlement Policy Framework (RPF) to be prepared under ESS5 by the Borrower, planning its actions taking into consideration, and in a manner consistent with, the provisions of ESS8. Due to the cultural and religious value of the cemetery to the nearby population, the relocation plan will need to be consulted with the population to reach an agreement about the procedure, accessibility, and details of its relocation.

As part of its due diligence, the Bank will analyze additional risks to cultural heritage that could be identified at a later point, and may propose additional mitigation measures to the ones already identified at this stage.

ESS9 Financial Intermediaries This standard is not relevant to the project

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C. Legal Operational Policies that Apply

OP 7.50 Projects on International Waterways No No rivers or international waters are involved in the project. OP 7.60 Projects in Disputed Areas No The project is located in an urban area with clear limits among the municipalities involved in the project. The overall project coordination will be under the jurisdiction of the Metropolitan Municipality of Lima.

III. WORLD BANK ENVIRONMENTAL AND SOCIAL DUE DILIGENCE

A. Is a common approach being considered? No Financing Partners For Official Use Only N/A

B. Proposed Measures, Actions and Timing (Borrower’s commitments) Actions to be completed prior to Bank Board Approval: Based on the available information, the team has prepared the following list of environmental and social instruments to be developed by the Borrower to achieve consistency with relevant ESF standards.

Documents to be ready by Appraisal:

The following documents will be prepared and disclosed prior to the beginning of the project’s Appraisal, in draft fit- for-disclosure versions, addressing the key environmental and social risks and impacts of the project, and providing Public Disclosure Public the necessary elements to inform stakeholder engagement and Bank decision making. Based on the current available information, these documents are:

1.Draft version of an Environmental and Social Assessment (ESIA). The technical design won’t be defined prior to appraisal, therefore a draft ESIA will be prepared and disclosed. This draft ESIA will also give inputs to prepare the basis for the Design and Build procurement process. Draft environmental and social management plans that will be part of the draft ESIA and are related to the construction phase of the project include: (i) Sourcing and Transportation of Construction Materials Management Plan; (ii) Waste Management Plan; (iii) Community Health and Safety Management Plan; (iv) Traffic Management and Road Safety Plan; (v) Environmental Assessment and Management Plan (or Biodiversity Management Plan) of the “Lomas de Amancaes”; (vi) Chance Find Procedure.

2. Draft version of Resettlement Planning Framework (RPF), which will include a census and cut-off date 3. Draft version of Labor Management Procedure (LMP) 4. Draft version of Stakeholder Engagement Plan (SEP) 5. Risk Hazard Assessment + Draft Emergency Response Plan for Construction and Operation, to the full extent possible, based on the available information 6. Draft version of Environmental and Social Commitment Plan (ESCP)

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Documents to be ready after Board approval:

7. Labor-related Grievance Redress Mechanism (GRM) and worker’s Code of Conduct for construction workers

Documents to be updated prior to the start of construction by the EPC contractor:

The draft ESIA, and corresponding draft environmental and social management plans, will be updated into a detailed ESIA and specific ESMPs during implementation, and prior to the start of construction (mobilization of personnnel), once the designs are finalized .The following environmental and social management plans specific for the operations phase will be prepared as part of the detailed ESIA: (i) waste management plan; (ii) resource consumption monitoring and management program; (iii) security, health and safety management plan; and (iv) communications plan.

The other instruments will be also updated as needed once the final designs are available. For Official Use Only Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP): The project will ensure consistency with the ESF through the preparation and implementation of the Environmental and Social Commitment Plan (ESCP), which will be prepared by the Borrower during the preparation stage of the project, prior to appraisal. The ESCP will be in line with the relevant environmental and social instruments and tools described in the ESSs. It will contain provisions for an adaptive management process, inputs to bidding documents for construction, and requirements for monitoring reports. The institutional agreements that will need to be subscribed, will also be included in the ESCP. Also anticipated is the need to prepare one or more Resettlement Action Plans (RAP), as applicable, and update the draft ESIA into a detailed ESIA, including the environmental and social management instruments required, once designs are finalized.

Public Disclosure Public C. Timing Tentative target date for preparing the Appraisal Stage ESRS 02-Apr-2020

IV. CONTACT POINTS

World Bank Contact: Irene Portabales Gonzalez Title: Transport Specialist

Telephone No: 5357+2349 Email: [email protected]

Contact: Daniel Pulido Title: Senior Infrastructure Specialist

Telephone No: 5220+36912 / Email: [email protected]

Contact: Leonardo Canon Rubiano Title: Urban Transport Specialist

Telephone No: 5220+80832 / Email: [email protected]

Borrower/Client/Recipient

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Implementing Agency(ies)

V. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects

For Official Use Only VI. APPROVAL Task Team Leader(s): Irene Portabales Gonzalez, Daniel Pulido, Leonardo Canon Rubiano

Practice Manager (ENR/Social) Maria Gonzalez de Asis Recommended on 09-Oct-2019 at 17:56:36 EDT

Safeguards Advisor ESSA Marco Antonio Zambrano Chavez (SAESSA) Cleared on 11-Oct-2019 at 09:54:4 EDT Public Disclosure Public

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