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E1897 PARAGUAY V2 MODERNIZATION PROJECT OF THE WATER AND Public Disclosure Authorized SANITATION SECTOR National Ministry of Public Sanitary Services Regulator of Secretariat of the Environmental Works and Company of Sanitary Services Environment Sanitation Service Communications Paraguay of Paraguay Public Disclosure Authorized TECHNICAL AND FINANCIAL SUPPORT INTERNATIONAL BANK FOR RECONSTRUCTION AND Public Disclosure Authorized DEVELOPMENT (IBRD) ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK (ESMF) Version to January 5, 2009 Public Disclosure Authorized TABLE OF CONTENTS TABLE OF CONTENTS ................................................................................................................ 2 A. INTRODUCTION........................................................................................................................... 5 ESMF Objective.............................................................................................................................................. 5 Scope of the ESMF.......................................................................................................................................... 6 B. PROGRAM (PROJECT) DESCRIPTION ...................................................................................... 7 Objectives of the Project................................................................................................................................. 7 Components of the Project.............................................................................................................................. 7 C. PROJECT WORKS AND ENVIRONMENTAL AND SOCIAL SAFEGUARD POLICIES OF THE WORLD BANK..................................................................................................................................... 9 Environmental and Social Safeguard Policies of the World Bank Initially Activated for the Project .......... 10 D. GENERAL ASSESSMENT OF THE ENVIRONMENTAL AND SOCIAL SITUATION......... 12 Methodology and Sources of the General Environmental and Social Assessment ....................................... 12 Summary of the Results of the General Environmental and Social Assessment ........................................... 12 General Environmental Assessment.............................................................................................................. 14 General Social Assessment ........................................................................................................................... 16 Social Risk..................................................................................................................................................... 21 Country Risks that Could Deteriorate the Project........................................................................................ 21 Institutional Risks that Could Obstruct the Good Development of the Project............................................. 22 Environmental Legislation............................................................................................................................ 22 Environmental Licensing in Accordance with Paraguayan Legislation....................................................... 23 Environmental Legislation of the Water and Sanitation Sector.................................................................... 24 General Legal Framework Related to Indigenous Populations.................................................................... 25 Sectoral Institutional Legal Framework ....................................................................................................... 28 Decisions on the Approach to Environmental-Social Issues of the Project based on the Conclusions of the Environmental and Social Survey of the Project .......................................................................................... 30 E. POSSIBLE WORKS OF THE PROJECT, MANAGEMENT OF THEIR DEFINITION, AREAS OF INFLUENCE AND POPULATION INVOLVED ................................................................................. 30 Major Urban Works –Sanitary Sewer System, Main Areas of Study//Influence and Beneficiary Population31 Environmental characterization of the total area of study/influence of the major urban sewerage works of the Great Asunción. ...................................................................................................................................... 35 Major Urban Sewerage Works Initially Prioritized...................................................................................... 37 a. Itay Basin....................................................................................................................................... 37 b. San Lorenzo Basin......................................................................................................................... 38 c. Luque Basin................................................................................................................................... 38 d. Mariano Roque Alonso Basin........................................................................................................ 38 e. Major Urban Works for the Caacupé Basin.................................................................................. 39 Initially Prioritized Minor Urban Works ...................................................................................................... 39 Sanitary Sewer System .................................................................................................................................. 39 f. Downtown Asunción...................................................................................................................... 39 g. Discharges into the River Paraguay.............................................................................................. 39 Drinking water.............................................................................................................................................. 39 h. Viñas Cué....................................................................................................................................... 39 Bases for the Rapid Social Assessment per Main Areas of Study/Influence ................................................. 40 a. Great Asunción.............................................................................................................................. 40 b. Caacupé......................................................................................................................................... 43 Works in Rural Areas, Environmental and Social Assessment, and Areas of Influence ............................... 44 a. Works in Rural Non-Indigenous Communities .............................................................................. 44 Drinking Water Systems................................................................................................................................ 44 Sanitation Works........................................................................................................................................... 44 2 Environmental and Social Assessment, Areas of Study/Influence of Rural Works for Non-Indigenous Rural Communities ................................................................................................................................................. 45 Selection Methodology for Non-Indigenous Rural Communities.................................................................. 45 b. Works in Indigenous Rural Communities ...................................................................................... 47 Environmental and Social Assessment and Areas de Influence of the Subprojects ...................................... 47 Works ............................................................................................................................................................ 48 Basic Sanitation ............................................................................................................................................ 48 Selection Methodology of the Indigenous Communities Beneficiaries of the Program ................................ 48 F. ENVIRONMENTAL AND SOCIAL CLASSIFICATION METHODOLOGY OF THE SUBPROJECTS............................................................................................................................................ 52 Classification in terms of the Typology of the Subproject: Type I, Type II, Type III and Type IV................ 53 Environmental-Social Category of the Subproject........................................................................................ 55 Summary of the Environmental Risk............................................................................................................. 57 Sensitivity of the Environment...................................................................................................................... 57 STUDIES REQUIRED ACCORDING TO THE ENVIRONMENTAL AND SOCIAL CATEGORY OF THE PROJECT............................................................................................................................................. 57 Classification of a Subproject in terms of the “Sensitivity of the Social Environment” ............................... 58 ENVIRONMENTAL-SOCIAL MANAGEMENT INSTRUMENTS FOR INTERNAL USE ................... 59 Preliminary Environmental-Social Assessment File (PESAF).....................................................................

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