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49352 GOVERNMENT OF THE STATE OF PERNAMBUCO Public Disclosure Authorized State Secretariat for Water Resources PERNAMBUCOSUSTAINABLE WATERPROJECT Public Disclosure Authorized ENVIRONMENTALASSESSMENT EXECUTIVESUMMARY DRAFT, May 2009 Public Disclosure Authorized Public Disclosure Authorized ACRONYMS ANA National Water Agency APP Environmental Protection Area COBH-Cabiparibe Capibaribe Basin Committee COMPESA Pernambuco State Water and Sanitation Utility CONAMA National Commission for the Environment CPRH State Environment and Water Resources Agency EMP Environmental Management Plan IBGE Brazilian Institute for Geography and Statistics IPA Pernambuco Company for Agricultural Research IPHAN National Institute of Historical and Artistic Heritage MRR Metropolitan Region of Recife NGO Non-Governamental Organization PAC Federal Growth Acceleration Program PER Preliminary Environmental Report PSH-PE Pernambuco Sustainable Water Project SRH State Secretariat for Water Resources WTP Water Treatment Plant WWTP Wastewater Treatment Plant PERNAMBUCO SUSTAINABLE WATER PROJECT FRAMEWORK FOR ENVIRONMENTAL AND SOCIAL MANAGEMENT 1. INTRODUCTION ......................................................................................................................................... 1 2 . GENERAL CHARACTERISTICS OF THE CAPlBARlBE BASIN .......................................................................... 2 3 . LEGAL AND INSTITUTIONAL FRAMEWORK AND COMPARATIVE ANALYSIS WITH IRDB SAFEGUARD POLICIES ........................................................................................................................................................ 4 4 . ENVIRONMENTAL AND SOCIAL ASSESSMENT OF COUNTERPART WORKS ............................................... 5 5 . ENVl RON M ENTAL AND SOCIAL ASSESSMENT OF WORLD BAN K-FI NANCE D INTERVENTIONS............... 12 5.1 Environmental Assessment of typologies ......................................................................................... 12 5.2 Social Analysis ................................................................................................................................... 17 6 . OVERALL PROJECT EVALUATION ............................................................................................................. 17 7 . ENVIRONMENTAL MANAGEMENT PLAN ................................................................................................ 19 7.1 Environmental Management of the Program ................................................................................... 20 7.2 Criteria and procedures for detailed project design and environmental assessment ..................... 21 7.3 Social Communication and Sanitary and Environmental Education ................................................. 22 7.4 Program for adhesion to the wastewater system and elimination of illegal connections ...............22 7.5 Compensatory measures program .................................................................................................... 22 7.6. Study of the quality of water and alternatives for minimizing the eutrophication of the Jucazinho, Tapacua and Carpina ............................................................................................................................... 23 7.7 Pilot Study on the re-use of effluents ............................................................................................... 23 7.8 Strengthening water quality monitoring in the Capibaribe river basin ............................................ 23 7.10 WWTP Sludge Management ........................................................................................................... 24 7.11 Integrated operation of reservoirs and water collection from the MRR and the Capibaribe river basin ........................................................................................................................................................ 24 7.12 Environmental plan for the river basin ........................................................................................... 24 7.13 Toritama Urban Environment Plan ................................................................................................. 25 7.14 Resettlement Framework ............................................................................................................... 25 7.15 Environmental Construction Manual .............................................................................................. 26 8 . PUBLIC CONSULTATIONS........................................................................................................................ 26 1. INTRODUCTION 1. This Executive Summary of the Environmental Assessment Report on the Pernambuco Sustainable Water Project (PSH-PE) presents the project’s main potential environmental and social impacts and proposed mitigation measures as succinctly and objectively as possible. 2. A comprehensive Environmental Assessment (EA) was undertaken during the preparation of the PSH-PE; the EA evaluates existing conditions, identifies potential direct and indirect environmental impacts, and proposes measures to mitigate negative impacts and enhance positive impacts. The Environmental Management Plan (EMP) summarizes these measures along with their associated costs, responsibilities, and schedule, and comprises an Environmental Construction Manual. Public consultations were carried out and documented following the disclosure procedures recommended by the Bank’s environmental policy. 3. A Social Analysis was undertaken in conjunction with the Environmental Assessment, and a Resettlement Policy Framework has also been prepared. Project documentation is available at the office of the State Secretariat for Water Resources - SRH, Government of Pernambuco, Av. Cruz de Cabuga 111, Recife - PE, Brazil, and safeguard studies were made available at the InfoShop on May 29, 2009. The Environmental and Social Assessments of the PSR-PE were commissioned by the State Secretariat for Water Resources (SRH), and prepared by the consultant Alexandre Fortes. 4. The proposed Project will be supported by a World Bank specific investment loan (SIL) in the amount of US$190 million. The project development objective is to improve sustainable water supply and sanitation services in the Capibaribe river basin and in the Metropolitan Region of Recife (MRR) - both in appropriate quality and quantity. The PSE-PE will support the Government of Pernambuco’s goal of achieving sustainable economic growth and social development, for which a reliable and efficient management of water resources, as well as adequate irrigation, water supply and sanitation service provision are critical. The project gives priority to investments in the Capibaribe river basin (the main river under State jurisdiction) and in the MRR (42% of the state population and 65% of the State GDP), aiming to provide efficient water supply services and to implement wastewater collection and treatment services, to protect the main water reservoirs targeted for human consumption. 5. Within the scope of designing the PSH-PE, SRH has requested the World Bank to consider the possibility of recognizing some of the sector interventions currently underway as State counterpart contributions under the future loan contract, particularly the works of the Pirapama water supply conveyance system, estimated to cost US$220 million, and currently under construction with resources from state government and from the Federal Growth Acceleration Program (PAC). 6. The project’s concept includes strengthening state water resources management, as well as improving water and sanitation management efficiency and infrastructure, with funding from two sources: (i)ongoing State counterpart civil works funded by the PAC; (ii)World Bank- financed civil works to improve the efficiency of existing water supply systems and to install wastewater systems in selected municipalities in the Capibaribe river basin, for which typologies have been defined. 7. Thus, this report focuses on two distinct sets of documents and works that integrate this project: (i)the social and environmental assessment of works currently under implementation with 100% financing from counterpart funds; and (ii)a framework for environmental and social management of future works to be implemented under the project with financing from the World Bank, including the environmental assessment of subproject typologies and the setting of criteria and procedures for the environmental assessment of subprojects in the project implementation phase. The proposed PSH-PE Project is structured in three components: 8. Component 1 - Water Sector Management and Institutional Development (US$29 million). This component covers the strengthening of institutions and the development of an efficient water resource management model, and supports: (i)integrated water resource management, (ii)water services and infrastructure; and (iii)project management. 9. Component 2 - Improving Efficiency in the Provision of Water Supply and Sanitation Services (US$52 million). This component will support: (i)non-revenue water, which will support activities aimed at reducing technical and commercial water losses and improving COMPESA’s services, sales and operational efficiency in the MRR, and (ii)the implementation of a corporate development program with focus on activities that can improve COMPESA’s financial equilibrium, overall customer satisfaction, staff productivity as well as corporate organization and management.