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Bolivia Multipurpose Water Supply and Irrigation

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Bolivia Multipurpose Water Supply and Irrigation PUBLIC SIMULTANEOUS DISCLOSURE DOCUMENT OF THE INTER-AMERICAN DEVELOPMENT BANK BOLIVIA MULTIPURPOSE WATER SUPPLY AND IRRIGATION PROGRAM FOR THE MUNICIPIOS OF BATALLAS, PUCARANI, AND EL ALTO (BO-L1080, BO-G1004, BO-X1012) LOAN PROPOSAL This document was prepared by the project team consisting of Edgar Orellana (WSA/CPE), Project Team Leader; Alfred Grünwaldt, Alternate Project Team Leader (INE/CCS); Omar Garzonio (WSA/CBO); Maria Julia Bocco, Raúl Muñoz, Javier García, and Liliana López (INE/WSA); Juan Manuel Murguía (RND/CBO); Ana Ríos and Ana Iju (INE/CCS); Carolina Escudero and Abel Cuba (FMP/CBO); Escarlata Baza (LEG/SGO); María Elena Castro and Steven Collins (VPS/ESG); Georgia Peláez (CAN/CBO); Prem Jai Vidaurre (CCS/CBO); and Patricia Nardelli, (consultant). This document is being released to the public and distributed to the Bank’s Board of Executive Directors simultaneously. This document has not been approved by the Board. Should the Board approve the document with amendments, a revised version will be made available to the public, thus superseding and replacing the original version. CONTENTS PROJECT SUMMARY I. PROGRAM DESCRIPTION AND RESULTS MONITORING ................................................ 1 A. Background, problem addressed, and rationale ............................................ 1 B. Objectives, components, and cost ................................................................ 6 C. Key results indicators ................................................................................... 7 II. FINANCING STRUCTURE AND MAIN RISKS ................................................................. 7 A. Financing instruments .................................................................................. 7 B. Safeguards and environmental and social risks ............................................ 8 C. Fiduciary and execution risks........................................................................ 9 D. Other program risks ...................................................................................... 9 E. Feasibility analysis ........................................................................................ 9 III. IMPLEMENTATION AND MANAGEMENT PLAN ............................................................ 11 A. Summary of implementation arrangements ................................................ 11 B. Summary of results monitoring arrangements ............................................ 13 - ii - ANNEXES PRINTED ANNEXES Annex I Summary Development Effectiveness Matrix (DEM) Annex II Results Matrix Annex III Fiduciary Agreements and Requirements ELECTRONIC LINKS REQUIRED 1. Multiyear execution plan and annual work plan 2. Monitoring and evaluation plan 3. Environmental and social management report (ESMR) 4. Procurement Plan OPTIONAL 1. Technical feasibility, and technical, economic, and socioenvironmental assessment (TESA) studies 2. Socioeconomic viability 3. Financial feasibility 4. Institutional feasibility 5. Social management and compensation plan 6. Operating Regulations 7. Climate change as a crosscutting theme in the TESA studies 8. Climate change and hydrology study 9. Climate risk maps and SIG database 10. Proposed comprehensive management plan for the Jacha Jahuira and Khullu Cachi subbasins 11. Robust decisions analysis framework for adaptation to climate change 12. Guide for preparing a drought management plan 13. Metropolitan water supply and sanitation master plan for La Paz-El Alto and adjacent areas 14. Program cost table 15. Key indicators in the Results Matrix 16. Analysis of compliance with the Bank’s Public Utilities Policy 17. Guidelines for the establishment of the multipurpose program’s operations technical committee 18. Lessons learned in program execution 19. Aide-mémoire –Khullu Cachi subbasin 20. Aide-mémoire –Jacha Jahuira subbasin 21. Environmental and Social Safeguards - iii - ABBREVIATIONS AAPS Autoridad de Fiscalización y Control Social de Agua Potable y Saneamiento Básico [Water Supply and Basic Sanitation Supervision and Societal Oversight Authority] AWP Annual work plan EBITDA Earnings before interest, taxes, depreciation, and amortization EMAGUA Entidad Ejecutora de Medio Ambiente y Agua [Environment and Water Executing Agency] EPSAS Empresa Pública Social de Agua Potable y Saneamiento para La Paz y El Alto [public water and sanitation utility for La Paz and El Alto] ESMP Environment and Social Management Plan ESMR Environmental and Social Management Report FSO Fund for Special Operations GAMs Gobiernos Autónomos Municipales [autonomous municipal governments] IAF Independent auditing firm ICAS Institutional Capacity Assessment System INE Instituto Nacional de Estadística de Bolivia [National Statistics Bureau of Bolivia] IPMS-IDB Integrated project management system MEFP Ministry of Economic Affairs and Public Finance MMAyA Ministry of the Environment and Water MPMO Multipurpose program management office NB-SABS Normas Básicas del Sistema de Administración de Bienes y Servicios [basic standards of the goods and services management system] NDF Nordic Development Fund O&M Operation and maintenance OTC Operations Technical Committee for the multipurpose program PPCR Pilot Program for Climate Resilience SCF Strategic Climate Fund SCMP Social compensation and management plan SICOES Sistema de Contrataciones Estatales [government procurement system] SIGEP Sistema de Gestión Pública [public management system] SIGMA Sistema Integrado de Gestión y Modernización Administrativa [Integrated Administrative Modernization and Management System] TESA Technical, economic, and socioenvironmental assessment W&S Water and sanitation WSSPs Water and sanitation service providers [the Spanish acronym for these is EPSAs; WSSP is used in this document to avoid confusion with EPSAS.] PROJECT SUMMARY PLURINATIONAL STATE OF BOLIVIA MULTIPURPOSE WATER SUPPLY AND IRRIGATION PROGRAM FOR THE MUNICIPIOS OF BATALLAS, PUCARANI, AND EL ALTO (BO-L1080, BO-G1004, BO-X1012) Financial terms and conditions Borrower and beneficiary: Plurinational State of Bolivia Ordinary Capital FSO Executing agency: Entidad Ejecutora de Medio Ambiente Amortization period: 30 years 40 years y Agua [Environment and Water Executing Agency] Disbursement period: 5 years(a) 5 years (EMAGUA) Source Amount (US$) % Grace period: 6 years 40 years Inspection and (b) IDB Ordinary Capital: 49,600,000 37 N/A supervision fee: IDB Fund for Special 12,400,000 9 Operations (FSO): Interest rate: LIBOR-based 0.25% Strategic Climate Fund (SCF) 42,500,000 32 - nonreimbursable: €4,000,000 Nordic Development Fund (b) (c) (equivalent to 3 Credit fee: N/A (NDF): US$4,370,000) Local: 24,145,136 18 U.S. dollars from the Currency of approval: U.S. dollars Total: 133,015,136 100 Ordinary Capital Program at a glance Program objectives/Description: The general objective is to improve potable water service delivery in the municipio of El Alto and access to water in the municipios of Pucarani and Batallas, taking into account climate change resilience considerations. The specific objectives are to: (i) increase the availability of water in the system that supplies the city of El Alto and the communities in the municipio of Batallas; (ii) improve and expand the use of irrigation systems in Pucarani and Batallas; and (iii) promote integrated water resource management and the sustainable use of natural resources in a context of climate change. Special contractual conditions precedent to the first disbursement: (i) a subsidiary agreement will be signed and enter into force between the executing agency, the Ministry of the Environment and Water, the Ministry of Development Planning, and the Ministry of Economic Affairs and Public Finance,(d) for the transfer of proceeds from the loan and the nonreimbursable financing and the execution and coordination of planned program activities, in accordance with terms and conditions agreed upon in advance with the Bank; (ii) a management office for the multipurpose program will be set up and in operation and its specialized technical staff selected in accordance with terms and conditions agreed upon in advance with the Bank; (iii) the program’s Operating Regulations will be approved and enter into force in accordance with terms and conditions agreed upon in advance with the Bank; and (iv) an initial report will be submitted to the Bank that includes the multiyear execution plan, the procurement plan, the financial plan, and the Results Matrix and Risk Matrix for the program (paragraph 3.3). Special contractual conditions for execution: Prior to awarding the contracts for infrastructure works in each of the participating municipios, EMAGUA will submit evidence to the effect that: (i) an interagency agreement has been signed and entered into force between EMAGUA and the corresponding autonomous municipal government covering works maintenance, counterpart contributions, and transfer of the assets,(e) in accordance with terms and conditions agreed upon in advance with the Bank; (ii) an agreement has been signed and entered into force between EMAGUA and the public water and sanitation utility for La Paz and El Alto (EPSAS) for execution of the works and operation and maintenance (O&M) of the systems; (iii) the program’s environmental and social conditions established in the Operating Regulations and in the Social and Environmental Management Report have been fulfilled; and (iv) 24 months after the date of the first disbursement of the program’s resources, the program’s Operations Technical Committee
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