The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

Public Disclosure Authorized

Integrated Safeguards Data Sheet Restructuring Stage Public Disclosure Authorized

Restructuring Stage | Date ISDS Prepared/Updated: 25-Jan-2021| Report No: ISDSR29852

Public Disclosure Authorized

Regional Vice President: Carlos Felipe Jaramillo Country Director: Jordan Z. Schwartz Regional Director: Anna Wellenstein Practice Manager/Manager: Rita E. Cestti Task Team Leader(s): Martin Benedikt Albrecht, Victor Vazquez Alvarez

Public Disclosure Authorized

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

Note to Task Teams: The following sections are system generated and can only be edited online in the Portal.

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I. BASIC INFORMATION

1. BASIC PROJECT DATA

Project ID Project Name Salado Integrated River Basin Management Support P161798 Project Task Team Leader(s) Country Martin Benedikt Albrecht, Victor Vazquez Alvarez Argentina

Approval Date Environmental Category

06-Apr-2017 Full Assessment (A) Managing Unit SLCWA

PROJECT FINANCING DATA (US$, Millions)

SUMMARY-NewFin1

Total Project Cost 375.00 Total Financing 375.00 Financing Gap 0.00

DETAILS-NewFinEnh1

World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 300.00 Non-World Bank Group Financing

Counterpart Funding 75.00

Borrower/Recipient 75.00

2. PROJECT INFORMATION

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

PROG_INF O Current Program Development Objective To enhance flood protection and strengthen the capacity of the responsible institutions for integrated water resources monitoring and management in the Salado River Basin.

Proposed New PDO The Project Development Objective is to (a) enhance flood protection and strengthen the capacity of the responsible institutions for integrated water resources monitoring and management in the Salado River Basin; and (b) support improved living conditions for Selected Beneficiaries in the Province of Buenos Aires as part of the COVID-19 pandemic recovery .

Note to Task Teams: End of system generated content, document is editable from here.

3. PROJECT DESCRIPTION

Original Project. The Salado Integrated River Basin Management Support Project was approved by the Bank Board of Executive Directors on April 6, 2017 with an IBRD loan of US$300 million to the Province of Buenos Aires (PBA). The PDO is to enhance flood protection and strengthen the capacity of the institutions responsible for integrated water resources management and monitoring in the Salado River Basin (SRB). The Project supports the Provincial Water Authority (ADA) and the Provincial Department of Hydraulic Works (DPH) to implement and operationalize structural and non-structural measures envisioned in the Integrated Salado River Basin Management Master Plan (PMI) that was financed by the World Bank in 1999 in response to the increasing climatic risks in the basin. The Loan Agreement was signed on December 21, 2017 and was declared effective on April 12, 2018. The Project has a closing date of December 30, 2022. As approved, the Project consists of three components described below.

Component 1: Integrated Water Resources Management (US$27.8 million, of which US$22.2 million IBRD financing). aims to strengthen institutional capacity for water resources management through the implementation of non‐structural measures of the PMI. Namely through the preparation of a Water Resources Management Plan1, an Environmental and Wetlands Management Plan for the Salado Basin, the strengthening of management and technical capacities of ADA, river basin committees, and DPH; and the development of a hydrometeorological monitoring network for better water resources management and risk mitigation.

Setbacks during contract negotiations and bid evaluation processes; restrictions of payment in foreign currency by the PBA as a consequence of the complex macro-fiscal situation; the change in administration and the subsequent review of all activities by the new counterpart; and the strict lockdown measures due to the COVID-19 outbreak all contributed to a significant delay in implementation of Component 1. To date, a consultancy to establish the baseline for the main

1 This is not only an update of the PMI, designed in 1999, but the approach and focus of both plans are also different: while the PMI is an strategic instrument to set the long term interventions needed in the basin, the proposed Water Resources Management plan is conceived as a more operational tool to prioritize specific interventions to improve water management in the Salado river basin.

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

wetlands located in the dredging works area is underway and the procurement processes for the Environmental Management Plan (subcomponent 1.2) and the Improvements in Water Governance (subcomponent 1.3) has been launched. It is estimated that the remaining two activities – Development of Technical Planning Tools (subcomponent 1.1) and the Hydrometeorological Services and Risk Management System SIMPARH (subcomponent 1.4) – will be launched in March 2021.

Component 2: River Training Works and Upgrading Associated Infrastructure (US$337.7 million, of which US$270.2 million IBRD financing) includes river training works on the Salado River along 34 kilometers (km) of the middle course to provide incremental flood protection for higher return period flood events. It also includes the modification of existing bridges to the new river cross-section enhancing their hydraulic capacity and increasing their resilience to extreme floods. The implementation of the river training works contract accumulated a delay of 6 months according to the original work plan, caused by the lack of sufficient equipment deployed by the contractor and low dredging yields during the first months of contract execution, among other causes. In addition, although works have not stopped during the COVID-19 pandemic, construction pace has slowed down due to social distancing measures. While two bridges will be dropped from the project portfolio as they will be financed by the National Road Administration, the bidding processes of three of the five bridges to be financed under the project are scheduled to be launched in February 2021.

Component 3: Project Implementation, Supervision and Communication (US$8.8 million, of which US$6.9 million IBRD financing) seeks to support the Project Works Coordination and Execution Unit (UCEPO) in project management and communication activities. Implementation of activities under this component are satisfactory.

Proposed Changes. The Government of the PBA has requested a restructuring of the Project to (a) reduce scope and costs for activities in Component 1 related to the non‐structural measures for water resources management; (b) include a new component to support the development of social housing; (c) make changes to the implementation arrangements; (d) revise the PDO and Results Framework to reflect changes to the activities supported by the loan; and (e) extend the Loan closing date by 12 months from December 30, 2022 to December 30, 2023.

Changes to Component 1: Integrated Water Resources Management.

The restructuring plan presented by the Province for Component 1 implies a reduction in scope of the four key subcomponents, while maintaining their contribution towards the PDO. Contrary to the original plan to utilize international market approaches, the borrower now prefers a national market approach due to the macroeconomic constraints leading to the decision to make payments in local currency. With the proposed extension of 12 months, all activities remain possible to be completed in the project timeframe.

The revised activities, therefore, aim at strengthening the capacity of the responsible institutions for integrated water resources monitoring and management in the Salado River Basin, but implement them in a phased approach. The main changes are the following:

a. Instead of developing a full Water Resources Management Plan for the Basin, the Project will support the development of the key analytical tools to prepare that plan, such as hydrological modeling, water balances and flood risk maps. b. Instead of working with the river basin committees to ensure they are reestablished and operational, the Project

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

will propose a new organizational model with new governing regulations, structure and functions of these committees at the basin, for the Province to implement after the Project completion date. c. The scope of water quality monitoring and control has been adjusted to a phased implementation approach beginning with an environmental management plan around the wetlands in the Project area associated with the river works. The Province is going to implement the full strategy of water quality monitoring and control after the Project completion date. d. Finally, the implementation of the Hydrometeorological Services and Risk Management System SIMPARH has been divided into three phases: phase 1 encompasses the main Salado River Basin and consists itself of 6 stages; phase 2 and 3 include the installation of hydrometeorological stations in the rest of the province of Buenos Aires, which is outside the scope of the project. Only stage 1-3 of the first phase will be financed by the project. Stage 1 is expected to be launched in March 2021, stages 2-3 are planned to be launched together in July 2021.

As a consequence of this reduction in scope, but also the devaluation of the peso against the dollar and the fact that all the main activities will be developed and implemented by local consultants instead of international ones as previously conceived, the cost of Component 1 was reduced from the original US$27.2 million to US$12.5 million.

Changes to Component 2: River Training Works and Upgrading Associated Infrastructure.

Sub-component 2.2. “Upgrading Associated Infrastructure” will finance the modification of five bridges instead of seven, as the remaining 2 bridges would be financed by the National Road Administration outside the scope of the Project. The savings in the award of the river dredging contract compared with the original estimated price, the significant devaluation of the local currency, and the removal these two bridges, have brought down the cost of this component from the original US$337 million to US$141 million.

Description of New Component 4: Social Housing.

The new Component 4 will support the PBA’s immediate objective of economic recovery and job creation through the construction of social housing as well as initial steps towards strengthening the institutional capacity of the IVBA as the primary engine for the delivery of housing for low-income households in the Province. It will finance the construction of approximately 2,000 units of social housing across multiple municipalities and support the strengthening of the IVBA in regard to program evaluation, improvement of housing designs, expansion of its portfolio of social housing, and refinement of its financial model. Finally, it will finance the scaling-up of personnel to enable rapid implementation and compliance with Bank policies.

The new Component 4 is comprised of two subcomponents:

Subcomponent 4.1. Development of Social Housing. The subcomponent will finance a series of social housing projects, that are expected to provide 2,000 new housing units benefiting 9,000 people. There are 12 pre-identified housing development that may receive financing, ranging in size from 50 units to 700 units. There is variability in the typology of units, as the developments are designed based on the availability of urban land in each of the locations. This subcomponent would finance the following investments:

a. the construction of housing and complementary infrastructure, including, inter alia, (i) the design, implementation and supervision of investments, including housing units, potable water, storm drainage and sewerage investments, gas distribution networks, and electricity connections; and (ii) the provision of infrastructure and equipment to connect houses to the existing main water, sewerage, and drainage, gas, and/or electricity networks, as the case

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

may be; and

b. the provision of infrastructure for public spaces and community infrastructure, including, inter alia, (i) street lighting; (ii) road and pedestrian paths; (iii) construction of public spaces and green areas; (iv) environmental and mitigation works to reduce environmental risks; and (v) community recreational and social service facilities.

The eligibility criteria for subprojects are described in Table 1. The baseline criteria are intended to ensure that all housing developments supported under the Project offer a high quality, well-located housing solution to the beneficiary families. The criteria requiring that all subprojects are located on vacant, publicly owned land will facilitate the rapid implementation of the Component. Additional criteria aiming to improve the architectural and urban design characteristics of the housing will be included in the Operational Manual and will be an ongoing focus of technical support from the Bank. It is anticipated that the subprojects bid early in Project implementation will use the traditional, low- density designs common to IVBA housing projects, which are of a high standard compared to other developing countries, and that subprojects bid later during implementation will integrate more innovative medium-density designs. Improvement to social housing designs supported under the Project may be adopted by the IVBA for use in future developments outside the scope of Bank financing.

All housing subprojects will be completed by the Project closing date. Of the 12 potential subprojects proposed by IVBA for evaluation by the Bank, documentation related to 5 have been shared with the Bank for an initial review of eligibility. As described above, the subprojects will be bid in multiple phases. It is anticipated that the bidding process for the first phase of subprojects will commence in February 2021 and works will start in June 2021.

Criteria Definition Vacant, publicly owned land Land parcel is publicly owned and without any formal or informal residential or commercial occupant Located in urban area Land parcel is located within a city or in its expansion areas or is adjacent to the urban area, and has accessibility to sources of employment, equipment (i.e. public services, schools, hospitals, government offices) and proximity to urban centrality Compliant with local regulations Development complies with local regulations on land use, zoning, building codes, environmental licensing, and any other requirements for the issuance of building permits Access to existing basic services Land parcel has the feasibility to connect to water, sanitation, and electricity services from respective utilities Located in environmentally hazard-free area or Land parcel is located in an environmentally hazard-free area as where risk can be mitigated at reasonable cost identified by the competent national, provincial or local agency

Subcomponent 4.2. Institutional Strengthening. This subcomponent seeks to strengthen the institutional capacity of the IVBA through, inter alia, (a) an evaluation of neighborhoods developed by IVBA and identification of opportunities for strengthening; (b) identification of opportunities to expand the supply of social housing through the establishment of a land inventory system; (c) strengthening of the Unified Beneficiary Registration System which mandates a transparent and fair process for the selection of beneficiaries; (d) development of basic metrics about the sector, including costs of different housing solutions and supply and demand indicators; and (e) an evaluation of IVBA’s financial model and identification of opportunities for strengthening. This component will also finance support for Project management activities carried out by IVBA, including, inter alia: (a) carrying out of monitoring and evaluation activities; (b) the carrying

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

out of activities to strengthen IVBA’s technical staff capacity; (c) the financing of operating costs; and (d) coordination with municipalities at specific stages of Project implementation.

Note to Task Teams: The following sections are system generated and can only be edited online in the Portal.

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4. PROJECT LOCATION AND SALIENT PHYSICAL CHARACTERISTICS RELEVANT TO THE SAFEGUARD ANALYSIS (IF KNOWN)

The Salado River Basin (SRB) is predominantly flat, the groundwater table is high and the 760 km long river often overflows, creating large floods. The river is not navigable and there are no fishermen whose livelihood would depend on the river; fishing along the river is recreational. The humid pampa in the direct intervention area of the Project’s river training works is heavily intervened by anthropogenic activities; nevertheless, the SRB has particular environmental value due to the presence of wetlands with important bird populations, including migratory species. The SRB includes Samborombon Bay, (300 km away from the leg of the works to be financed by the Project), a RAMSAR site recognized as a wetland of international importance. Otherwise, basic identification and mapping of the wetlands in the basin remain a pending task that the Project will address amongst the initial activities to create a basin-level Environmental and Wetlands Management Plan. In terms of physical cultural resources (PCR), the SRB is known particularly for paleontological findings, as a number of prehistoric animal fossils discovered during the exceptional droughts of 2009 in the Municipalities of Roque Perez and Lobos when the Salado River dried up. There are, however, no known PCR within the Project works’ direct impact area. In terms of land use, the SRB has low population density and the mainland use consists of large-scale agriculture and livestock. Housing Developments under Component 4 will be built on urban land in the Buenos Aires Metropolitan Area that is vacant, publicly owned, and located in environmental hazard-free areas (not prone to natural risks -e.g. seismic or landslides-) or areas where risk can be mitigated at a reasonable cost (e.g sanitary risks -possible waste dumps- or technological risks (deriving from existing infrastructure as high tension lines). The PBA identified 12 potential housing developments in 9 different municipalities, to be evaluated for possible financing under the Project. The selected parcels are in low- and moderate-income areas where community and social services provision is available, but limited, as well as connectivity to main urban centers. These are highly dense urban areas that have been modified by long-standing human interventions. Housing developments will comply with local regulations on land use, zoning, building codes, and environmental licensing; and building designs will comply with energy efficiency guidelines.

5. ENVIRONMENTAL AND SOCIAL SAFEGUARDS SPECIALISTS ON THE TEAM

Fernando J. Brunstein, Environmental Specialist Francis V. Fragano, Environmental Specialist Angel Alberto Yanosky, Environmental Specialist Santiago Scialabba, Social Specialist Maria Emilia Sparks, Social Specialist

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

Eleonora Beatriz Camalli, Social Specialist Alicia Josefina Gesino, Environmental Specialist SAFEGUARD_TABLE 6. SAFEGUARD POLICIES TRIGGERED Safeguard Policies Triggered Explanation The Project triggers OP 4.01 and has been categorized as 'A' due to (i) the 34 km of river training works to widen and deepen the Salado river cross-section and deposition of nutrient-rich sediment in ring-fenced parcels on farmland under Component 2 (“recintos”); and (ii) the sensitivity of the SRB due to the presence of wetlands and riparian buffers with environmental value, particularly for avifauna. The track record of the environmental and social management of the 223 km of the downstream works to date has not presented significant negative impacts.

The development of the PMI included the preparation of a strategic Regional Environmental Impact Assessment (REIA) with a basin-wide scope in 1999 and a review and update of the same in 2007. The REIA was financed by the WB and followed the applicable safeguards policies. The sections of the river already dredged followed Environmental Assessment (OP) (BP 4.01) Yes environmental management guidelines prepared as a result of the REIA process, including an Environmental Management Manual for Hydraulic Works in the SRB, prepared in 2007 and applied thereafter for the detailed design and implementation of the PMI works.

Based on the REIA and an EIA that the DPH had undertaken and consulted publicly at the feasibility stage, the DPH has conducted an Environmental and Social Impact Assessment (ESIA) and prepared the respective Environmental and Social Management Plan (ESMP) for the Project, with a focus on the river training works, following and complying with the WB requirements for a Category A project. The Bank has approved this ESIA/ESMP that was prepared also to establish key synergies with Subcomponent 1.2 of the Project, which includes the preparation of an Environmental and Wetlands Management Plan for the entire basin.

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

No Changes in the safeguards approach or exceptions are necessary for the original project components. The Project was prepared under requirements of OP 4.01 and was categorized as Category A due to river works, disposal of dredged materials, and potential water flow changes among other impacts. OP 4.04 was also triggered given the sensitivity of the Salado Basin due to the presence of natural and critical habitat including wetlands and riparian buffers and OP 4.11 given potential for chance finds of physical cultural resources. A specific Environmental Impact Assessment was prepared for the project dredging works and its associated Environmental and Social Management Plan is being implemented currently.

The works proposed under the new component consist of low-scale housing construction using traditional construction methods and installation of intra-parcel utility networks and secondary roads; all new planned investments under the restructured component are considered low-risk activities from an environmental perspective requiring attention to building standards, community health and safety, worker health and safety, and flood risks among other urban infrastructure risk and impact considerations. The social risk associated with the new component is considered moderate given the need to consider social dimensions of housing programs, including citizen security, accessibility, equitable access to housing among other issues. To comply with World Bank safeguards policies, relevant provisions of OP/BP 4.01 will be considered, and project investments will undergo environmental assessment commensurate with the scale and nature of the restructuring component investments. The Project prepared and consulted an Environmental and Social Management Framework to manage potential risks associated with these kinds of works. The consulted ESMF was published on the Borrowers website on October 23, 2020 and the Bank's external website on January 19, 2021. In addition, specific Environmental and Social Management Plans will be prepared for each

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

of the investments as the designs are finalized and to inform their preparation. Performance Standards for Private Sector No Activities OP/BP 4.03 The Project triggers OP 4.04 on Natural Habitats as the entire Salado River is considered an Important Bird Area (IBA) due to the presence of wetlands, and despite the overall heavy impact of anthropogenic activities in the basin. However, the Project works’ direct impact area does not include any type of natural habitats as defined by the policy. In every case, qualified assessment of populations of significant bird species will take place before construction works start, and the environmental selection criteria set for the Natural Habitats (OP) (BP 4.04) Yes “recintos” requires an environmental assessment of each potential parcel prior to selection, to ensure no remnant areas of value to biodiversity be negatively impacted. The implementation of the SRB Environmental and Wetlands Management Plan is expected to strengthen the key public agencies’ capacity for environmental management at the basin level, including the Samborombon Bay Ramsar site and other protected areas outside the direct impact area of the Project that are inadequately managed. OP 4.36 is not triggered as the native vegetation of the Project area does not include forests. Any Forests (OP) (BP 4.36) No potential impact on planted trees will be covered through OP 4.01. The Project triggers OP 4.09 to ensure it is prepared to promote integrated pest management to address potential induced impacts: the reduced flooding and creation of the “recintos” is expected to increase agricultural production and potentially the use of agrochemicals. The Project will not imply a direct increase in the use of pesticides or herbicides, nor does it require a stand-alone Pest Management (OP 4.09) Yes Integrated Pest Management Plan prior to Project appraisal. As described in the ESIA/ESMP, the Project will promote sustainable agricultural and other land-use practices under Subcomponent 1.2 to minimize chemical and nutrient flow into the river and the Samborombon Bay. In the case of Component 4, the Policy is activated to ensure that the Program is prepared to attend to potential cases of necessary control of rodents,

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

pests, or vectors that are particularly present in habitats and precarious settlements. The Project triggers OP 4.11 for precautionary purposes; there are no known physical cultural resources within the Project works’ direct impact area. However, the SRB is known for paleontological findings of animal fossils, and the river training works might result in chance finds. The ESIA/ESMP includes specific requirements and Physical Cultural Resources (OP) (BP 4.11) Yes guidance to address them.

Component 4 will finance works that will involve excavations, demolitions, and earthworks, that could result in “chance-finds”. Specific measures to manage associated risks will be conveniently incorporated into the construction stage for ESMP in each subproject. The Project triggers OP 4.10 as there are indigenous peoples present in the SRB; the affected area by Component 1. According to the National Registry of Indigenous Communities, produced by the National Institute of Indigenous Affairs (INAI) to provide information on the localization of indigenous communities, there are no indigenous communities in the area directly impacted by the river works under Component 2. This information was further confirmed through particular consultations conducted by the head of the Department of Environmental Studies (DES) of the DPH with specialists e.g. from the Faculty of Natural Science and Museum of the National University of La Plata. According to the current map of indigenous Indigenous Peoples (OP) (BP 4.10) Yes peoples developed by the “Encuentro Nacional de Naciones Originarias, ENOPO”, four indigenous peoples are represented in different parts of the Province of Buenos Aires: Tonokote, Tehuelche, Querandi, and Mapuche. According to the National Registry of Indigenous Communities, Mapuche and Tehuelche communities are present in the SRB.

There are activities under Component 1 that will carry out tasks with, or be directed to different stakeholders with a key role in water management, or affected by water related issues in the basin. Such stakeholders will first need to be identified by studies characterizing the basin, and only when these studies are completed it will be possible to

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

know whether IPs are among such stakeholders. Therefore, an indigenous Peoples Planning Framework (IPPF) was prepared by DPH and approved by the Bank, and consulted between February 3 and 13, 2017 with INAI and the Provincial Council of Indigenous Affairs (CPAI). The IPPF is similar to those that have been used for technical assistance and focuses on ensuring that any participation process involving indigenous people would be carried out in a culturally appropriate manner. Both INAI and CPAI agreed with the proposed strategy and suggested minor changes that were included in the IPPF. The final IPPF was disclosed in-country on February 15 and at the WB external website on February 21, 2017. Consultations on the IPPF were limited to virtual consultations with the INAI and CPIA and broad community support for specific activities would then be obtained during implementation in case the studies confirm that IPs are among the stakeholders that will need to be involved and consulted with in regard to Component 1 activities (with preparation of site specific IPPs, as and if required, following the procedures detailed in the IPPF). The original Project activities did not require the taking of land that result in relocation or loss of shelter, loss of assets or access to assets, or loss of income sources or means of livelihood, and therefore OP 4.12 was not triggered. The dredged material extracted from the river bed is of rich quality and demanded by many farmers. Its final disposal relies on properly documented voluntary agreements with the implied landowners. These voluntary agreements ensure that there is power- of-choice and informed consent of owners. The Involuntary Resettlement (OP) (BP 4.12) Yes potential dredging impacts on crops on some small strips of land that some farmers may periodically use, even though they know the land is public and subject to frequent floods, will also be avoided. In cases where a farmer is using the public domain land adjacent to his/her property to plant crops, the DPH announces the works in a timely manner and provides written notice so that the farmer has the necessary time to harvest the crops prior to impact.

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

The works are carried out in the riverside area on land that is flooded. From the analysis carried out in the ESIA, it emerged that there was no use of these lands by people other than the owners, administrators, or tenants, with whom there is a formal relationship. For this reason, the Protocol of voluntary agreements includes the agreements to be made with the owners, who can decide whether to authorize their representatives to sign the agreements. Voluntary agreements are being reached with all farmers who own property adjacent to the area to be dredged; said agreements include an agreement for the government to enter the relevant farmer’s property to access the dredging area, an agreement to dispose of the dredged soil (if applicable), and an agreement on the date in which the dredging will commence (so crops, if any, can be harvested before the dredging date). Therefore, no physical works are carried out without the consensus of the landowners. The procedure and details on how to document these agreements are explained in the Voluntary Agreements Protocol that has been disclosed as part of the ESIA.

It has been confirmed that additional works under Component 2 (the seven bridges and the two public bath areas in Roque Perez and Villanueva) will not require land acquisition. A draft Protocol was disclosed on December 7, 2016 in-country and in the Bank’s external website as part of the ESIA/ESMP. The final Protocol was disclosed, respectively, on February 15 and 21, 2017.

To gain a better knowledge of the actual use of the narrow strip of land that would be excavated with the Project financing, the World Bank conducted an analysis of remote sensing imagery of the implied 34 km of the river shore. In the visual analysis, no infrastructure or constructions of any type were identified in the direct Project intervention area and it was concluded that the most prevailing land- use type in the referred area is grassland. The analysis also verified that the area of the plots that will be affected by the dredging works represents only a very small percentage of the total area of each plot.

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

The new component triggers OP 4.12 (Involuntary Resettlement). Although the proposed housing developments are expected to be built on vacant, publicly owned land, it is possible that some of the housing developments that could be financed under the Project could require small scale taking of land resulting in relocation or loss of shelter for some Project beneficiaries. The Project prepared and consulted a Resettlement Policy Framework to manage any resettlement processes that may be associated with the housing developments under evaluation and address any other unexpected potential impact associated with OP 4.12. The consulted RPF was published on the Borrowers website on October 23, 2020 and the Bank's external website on January 19, 2021. OP 4.37 is not triggered as the proposed Project will neither support the construction or rehabilitation Safety of Dams (OP) (BP 4.37) No of dams nor will it support other investments which rely on the performance of existing dams. The Project triggers OP 7.50 as (i) it is located in the RSB that is a tributary of the Rio de la Plata, a water course shared with Uruguay and subject to the Rio de la Plata Treaty and its Common Maritime Front, approved by Law 20645; and (ii) the Project involves infrastructure works to improve the Projects on International Waterways (OP) Yes drainage of the river basin. However, the Project (BP 7.50) has been given an exception from the obligation to inform Uruguay, since Argentina is the final down- stream country and the RSB is entirely within Argentina. The respective Memo was approved by the Regional Vice President for Latin America and the Caribbean on December 12, 2016. OP 7.60 is not triggered as the Project will not Projects in Disputed Areas (OP) (BP 7.60) No finance activities in disputed areas as defined in the policy.

KEY_POLICY_TABLE II. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT

A. SUMMARY OF KEY SAFEGUARD ISSUES

1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts. Based on the original Project’s ESIA, the river training works’ key potential negative environmental impacts during construction relate to alterations in the pattern of water flow as a result of the excavation in the river bed and

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

surrounding areas. The direct impacts on fauna, particularly birds and fish life, bring about disturbances and loss of habitats in the river and its margins and affects soils of the flood plain. These impacts produce a reduction of edaphic quality of the riparian zone and the associated benthonic micro-fauna. These impacts are temporary and can be avoided, minimized, or mitigated through proper implementation of the ESMP. The bird and fish species identified in the Project works’ direct impact area do not present a vulnerable or threatened status. Overall, the environmental assessment conducted on the area presents the absence of any type of natural habitat as defined by OP 4.04. It presents mostly rural landscapes and significant anthropogenic influence; none wild or pristine zones remain. The loss of habitat due to the Project works is considered localized, temporary and reversible once the works are completed, due to the environmental considerations embedded in the very design of the river works and the overall capacity of the biological/fluvial corridor to restore similar conditions. The Original Project aims at overall positive environmental impacts in terms of the river training works and preparation of a basin-level Environmental and Wetlands Management Plan. The latter will strengthen the environmental management capacity of the Provincial Water Authority (ADA), responsible for water quality.

The social impacts identified by the ESIA for the original project are predominantly positive, e.g. generation of employment due to the demand of manpower, generation of induced economic activities, improvements on roads and related infrastructure with the consequent improvement in productivity and regional economy. The negative social impacts, such as modifications on communication pathways due to the works, are limited to the construction phase and thus temporary. They can be avoided, minimized, or mitigated by the programs included in the ESMP. The labor force for the river works is lower than 100 workers, including local workers, and to be hosted in camps, so the risk of potential impacts to the communities is low. The mandatory training program for the workers contains health and safety issues and incorporates the topic of prevention of communicable diseases.

The works proposed under the new component under this Level 2 Restructuring consist of low-scale housing construction using traditional construction methods and installation of intra-parcel utility networks and secondary roads; all new planned investments under the restructured component are considered low-risk activities from an environmental perspective requiring attention to building standards, community health and safety, worker health and safety, and flood risks among other urban infrastructure risk and impact considerations. The social risk associated with the new component is considered moderate given the need to consider social dimensions of housing programs, including citizen security, accessibility, equitable access to housing among other issues. To comply with World Bank safeguards policies, relevant provisions of OP/BP 4.01 will be considered, and project investments will undergo environmental assessment commensurate with the scale and nature of the restructuring component investments. The Project prepared and consulted an Environmental and Social Management Framework to manage potential risks associated with these kinds of works. Due to COVID related restrictions, consultations were held virtually. Following disclosure of the draft ESMF, stakeholders were invited to share comments by email and a virtual consultation meeting was held on October 7, 2020. The consulted ESMF was published on the Borrowers website on October 23, 2020 and on the Bank's external website on January 19, 2021. In addition, specific Environmental and Social Management Plans will be prepared for each of the investments as the designs are finalized and to inform their preparation.

The new component triggers OP 4.12 (Involuntary Resettlement). Although the proposed housing developments are expected to be built on vacant, publicly owned land, it is possible that some of the housing developments that could be financed under the Project could require small scale taking of land resulting in relocation or loss of shelter for some Project beneficiaries. The Project prepared and consulted a Resettlement Policy Framework to manage any resettlement processes that may be associated with the housing developments under evaluation and address any other unexpected potential impact associated with OP 4.12. Due to COVID related restrictions, consultations were held virtually. Following disclosure of the draft ESMF, stakeholders were invited to share comments by email and a

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

virtual consultation meeting was held on October 7, 2020 'The consulted RPF was published on the Borrowers website on October 23, 2020 and on the Bank's external website on January 19, 2021.

2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area. The main induced and cumulative environmental impacts potentially caused by the global river training works under the original Projectrelate to (i) water quality (sedimentation and turbidity during construction and potential increase of nutrients and fertilizers due to increased drainage from agricultural areas during operation); and (ii) fish populations and recreational fishing activity. To decrease the direct, induced, and cumulative impacts, key environmental design aspects have been included and a number of measures and actions systematically applied in the global river training project since the pre-feasibility stage: (i) the maintenance of an ecological flow that corresponds approximately to the medium annual low water condition. This supposes an optimal operation of the system with at least minimum canalized flows with speeds that prevent sedimentation; (ii) no rectification of the main river course nor the construction of any type of concrete structures; something that also lessens the implied maintenance needs; and (iii) maintenance/establishment of a biological/fluvial corridor within 200 m from the river edge on both sides as an environmental asset and a valuable landscape element, exempt also of establishment of the “recintos” to facilitate conservation and strengthening of the area’s key ecological characteristics. Overall, beyond decreasing the flooding risks, the design of the mechanisms that regulate incoming and outgoing water flows facilitates the maintenance of the river’s ecosystem services, including a decrease of downstream pollution by nutrients and fertilizers caused by flooding. In practice, the observed river training impacts on the riverine ecosystems have not raised particular concerns.

There is still limited information on both hydrometeorology and the effects of land use in the water resources dynamics at the basin level. Component 1 will invest in non-structural measures to promote integrated watershed management at the basin level, e.g. in environmental monitoring and management of the complex wetlands ecosystems. Subcomponent 1.2 aims to strengthen the institutional capacities of the key agencies to facilitate informed decision-making related to environmental management with a particular focus on water quality and wetlands management. The basin-level Environmental and Wetlands Management Plan will also promote sustainable agricultural and other land-use practices to minimize chemical and nutrient flow into the river.

Indirect impacts associated with works under Component 4 are mainly positive, and they include community revitalization through expanding homeownership and creating an enabling environment for revamping stagnant neighborhood housing markets. In addition, new housing developments promote the indirect development of the local economy through household expenditures in the local businesses. Indirect impacts also include health positive externalities, taking into account that enhanced housing conditions are also significant contributors to preventing environmentally related diseases and illness and that living in an adequate shelter contributes to physical and psychological well-being, and supports the development and social integration of its inhabitants.

3. Describe any potential alternatives (if relevant) considered to help avoid or minimize adverse impacts. The Project contributes to the implementation of the PMI that initially through a careful analysis of available alternatives in terms of the included structural and non-structural measures. The alternatives analyzed to address flooding emergencies in the SRB included the baseline “Without” and 4 different “With Project”

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

The analysis of the alternatives concluded that “Without” was unacceptable since it would not solve any of the existing environmental, social, or economic problems in the SRB. The most likely outcomes of this scenario were: (i) continued flooding in urban and agricultural areas, resulting in economic losses and social impacts; (ii) incapacity of the province to increase agricultural production, resulting in loss of share in international markets; (iii) continuation of, and perhaps increase in the environmentally negative use of agrochemicals, resulting in a reduction of water quality and potential water provision problems; and (iv) ad-hoc continuation of the inadequate management/over- exploitation of the natural resources.

The other alternatives included different scales of intervention from small areas of the basin hydraulically enhanced, to an "extensive strategy" of interventions covering the entire basin. The analysis concluded in favor of the “extensive strategy“ due also to the resulting increase in economies of scale. Assuming successful operation, it would generate a series of effects that contribute to reducing the environmental and social impacts of both floods and droughts.

Later, technical alternatives were analyzed for the final design of the PMI works: The original proposal on the execution of parallel embankments in both margins so that the excessive runoff to flow would be elevated with respect to the natural land was considered disadvantageous in periods of heavy rainfall in the upper basin. The alternative and innovative solution implied disposing of the dredged material in selected, discontinuous, low-lying areas along the land bordering the river, denominated “recintos”. Now, the volume of surplus soil, a product of the extension and deepening of the river canal, constituted the main factor to consider in terms of impacts. Annex 6 of the Project Appraisal Document provides further details on the alternatives considered.

The proposed housing developments under the new Component are expected to be built on vacant, publicly owned land. As such, the works to be financed under the Project are not anticipated to require the taking of land resulting in resettlement. Nevertheless, the new component triggers OP 4.12 (Involuntary Resettlement) since it is possible that some of the housing developments that could be financed under the Project could require small scale taking of land resulting in relocation or loss of shelter for some Project beneficiaries. In addition, the housing developments will be located in environmental hazard-free areas (as identified by the competent national, provincial or local agency) or where risk can be mitigated at a reasonable cost.

4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The institutional arrangements will continue to be largely the same as originally described for the Project, with the MoI as the Implementing Agency through UCEPO. UCEPO is responsible for securing and coordinating safeguards implementation, monitoring and evaluation (M&E), and coordination with the World Bank.

The environmental and social management of Component 2 relies on the Department of Environmental Studies (DES) of the DPH that has prepared the Project’s safeguards instruments. DES has a small inter-disciplinary team of competent professionals in charge of the EIAs and monitoring of the sustainability of the river training works. The DPH has a solid capacity and significant experience with the environmental and social management of the structural PMI works since their initial implementation in 2000. OPDS is currently reviewing the EIA required for the Project works by the national and provincial legislation, prepared and consulted prior to the World Bank engagement with the Project. The DES experience covers formal and informal mechanisms of public involvement and communication and negotiation with the affected landowners. The Bank has conducted safeguards related “due diligence” on the already conducted downstream works based on a desk review of relevant documents, discussions with the DPH personnel, and field visits. No issues have been identified that would warrant concern in terms of the DPH performance on the environmental and social management of the river training works to date. The works along the

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

26 km leg IV-1-A, financed by the Federal Government and executed partly parallel to the Project-financed works, are covered with the same environmental and social management procedures as the Project works. Beyond the same overall approach, each river section and stage implies site-specific measures as pertinent to their natural and social features.

Based on the assessment of the institutional capacity needed to implement the Project’s environmental and social risk management under Component 2 and to supervise the preparation of the basin-level Environmental and Wetlands Management Plan, DES/DPH hired (i) a social specialist with a profile of anthropology to help implement and document the negotiation processes with the affected landowners, manage grievances following the Grievance Redress Mechanism (GRM) developed as one of the ESMP Programs, and manage the implementation of the IPPF; (ii) an environmental specialist with experience in environmental technologies and environmental management in urban areas, and (iii) a specialist in GIS to strengthen systematization and access to basin-wide information.

For the new Component 4, the Housing Institute of the Province of Buenos Aires (IVBA) will be a sub-executor, working in collaboration with the Project and Works Coordination and Execution Unit within the Ministry of Infrastructure and Public Services (UCEPO). The IVBA will be responsible, inter alia, for securing and coordinating safeguards implementation, and Monitoring and Implementation aligned with the requirements set forth in the ESMF. The IVBA has a long track record of addressing the PBA’s housing deficit and providing housing to the most vulnerable groups; it is the only entity in the Province building housing for the bottom 40 percent of the income distribution. Approximately 80 percent of its beneficiaries are households in the low- and middle-income deciles, comprised primarily of informal workers and low-to-middle income formal employees. Currently, the IVBA has more than 102,000 beneficiaries.

The IVBA does not have a unit dedicated exclusively to the management of environmental and social aspects. These tasks are within the missions and functions of the General Works, and the Development and Social Work Divisions. In order to manage the environmental and social risks of the Program, IBVA has hired an environmental specialist and a social specialist. Both specialists will have the support and structure of the General Works, and the Development and Social Work Divisions; which together have a body of more than 30 professionals from various disciplines (engineers, architects, anthropologists, social workers, and lawyers).

Subcomponent 4.2, Institutional Strengthening, will strengthen the institutional capacity of the IVBA through, inter alia, the identification of opportunities to expand the supply of social housing through the establishment of a land inventory system and the strengthening of the Unified Beneficiary Registration System which mandates a transparent and fair process for the selection of beneficiaries. In addition, Subcomponent 4.3, Project Management, will finance support for Project management activities carried out by IVBA, including, inter alia, carrying out of monitoring and evaluation activities; the coordination with municipalities at specific stages of Project implementation.

5. Identify the key stakeholders and describe the mechanism for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. During the PMI preparation and implementation regarding the river training works along the Salado River, there have been different participation instances that allowed the inclusion of community concerns to the global project. There were also interactions with the academic sector and nongovernmental organizations (NGOs) that fed the design of the works in its different sections and stages. Other actors like municipal authorities and producer associations have also actively participated in different instances, e.g. in a public hearing summoned by the Provincial Ministry of Infrastructure on Sep 27, 2016, in the City of Roque Perez. In the hearing, the participants were informed about the characteristics and impacts of the river training works at the upper Salado basin where the Project works will take

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

place. Stakeholders like members of the school community and NGOs where present and their concerns, questions, and proposals were received, responded, and, when feasible, incorporated in the Project. The latter was the case of proposals for the improvement of two public recreational beaches (“balnearios”). Other questions related to chances to find PCR, an aspect covered by the Project ESIA/ESMP. The Project ESIA presents the related public participation in further detail.

The advanced draft of the Project ESIA/ESMP was disclosed in-country and at the World Bank external website on Dec 7, 2016. It was consulted online from Dec 15 until Jan 12, 2017, including the opportunity for face-to-face discussion at the DES office on 10-12 of Jan. This consultation did not yield additional comments or considerations. The final ESIA report was disclosed in-country on Feb 15 and by the Bank on Feb 21, 2017.

The Water Resources Management Plan and Environmental and Wetlands Management Plan for the SRB will be developed through a participative process where local and regional stakeholders will be consulted about their scope and content. DEA/DPH prepared, consulted, and disclosed an IPPF to promote the participation of Indigenous Peoples in activities under Component 1 at the basin level.

Components 1 and 2 have a functioning GRM that is managed by DPH. The GRM establishes the mechanisms to submit grievances and receive responses, states the number of days it can take to receive a response, and identifies two different levels of conflict resolution before complaints reach the judicial court system. Component 4 will have a similar GRM, which minimum requirements are established in the ESMF, and will be managed by IVBA. Additional measures to ensure that the GRM is easily accessible to the public and to the project affected people are included in the basic requirements for the Subprojects ESMPs and in the RPF, respectively.

Key stakeholders for component 4 are the residents of the Province of Buenos Aires whose living conditions will be improved by access to the housing developments that will be financed by the Project. The IVBA works with the municipalities for the selection of beneficiaries through a Single and Permanent Register for Housing Demand, which has the objective of unifying and making the process for the selection of beneficiaries more transparent. In response to the COVID-19 pandemic, priority will be given to pre-selected beneficiaries whose income is in the bottom 40 percent of the income distribution, and those who have heightened vulnerability to the virus due to overcrowding and/or restricted access to basic sanitation services in their current residence. In addition, if the Project finances housing developments that could be provided as compensation to households who are being resettled as a result of other government-funded works, people affected by these processes will also be incorporated as key stakeholders under this component. For both cases, the Project has a mechanism for conducting public consultations in place, including activities for when there are constraints on conducting public meetings, which are in line with local requirements and the recommendations found in Bank’s Technical Note prepared for this situation “Public Consultations and Stakeholder Engagement in WB-supported operations when there are constraints on conducting public meetings, March 20, 2020.”

DISCLOSURE_TABLE B. DISCLOSURE REQUIREMENTS

ENV_TABLE Environmental Assessment/Audit/Management Plan/Other

Date of receipt by the Bank Date of submission for disclosure 17-Nov-2016 21-Feb-2017

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

For Category ‘A’ projects, date of distributing the Executive Summary of the EA to the Executive Directors 07-Dec-2016 “In country” Disclosure

Country Date of Disclosure Argentina 15-Feb-2017 Comments

RESETTLE_TABLE Resettlement Action Plan/Framework Policy Process

Date of receipt by the Bank Date of submission for disclosure 14-Sep-2020 21-Sep-2020 “In country” Disclosure

Country Date of Disclosure Argentina 29-Sep-2020 Comments

INDIGENOUS_TAB LE

Indigenous Peoples Development Plan/Framework

Date of receipt by the Bank Date of submission for disclosure 16-Jan-2017 21-Feb-2017 “In country” Disclosure

Country Date of Disclosure Argentina 15-Feb-2017 Comments

PEST_TABLE

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

Pest Management Plan

Was the document disclosed prior to appraisal? TBD Date of receipt by the Bank Date of submission for disclosure

“In country” Disclosure

COMPLIANCE_TABLE C. COMPLIANCE MONITORING INDICATORS AT THE CORPORATE LEVEL

EA_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes

If yes, then did the Regional Environment Unit or Practice Manager (PM) review Yes and approve the EA report?

Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes

NH_TABLE OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or degradation of critical No natural habitats?

If the project would result in significant conversion or degradation of other (non- critical) natural habitats, does the project include mitigation measures NA acceptable to the Bank?

PM_TABLE OP 4.09 - Pest Management Does the EA adequately address the pest management issues? Yes

Is a separate PMP required? No

If yes, has the PMP been reviewed and approved by a safeguards specialist or PM? Are PMP requirements included in project design? If yes, does the project NA team include a Pest Management Specialist?

PCR_TABLE OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? Yes

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

Does the credit/loan incorporate mechanisms to mitigate the potential adverse Yes impacts on cultural property?

IP_TABLE OP/BP 4.10 - Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Framework (as appropriate) Yes been prepared in consultation with affected Indigenous Peoples?

If yes, then did the Regional unit responsible for safeguards or Practice Manager Yes review the plan?

If the whole project is designed to benefit IP, has the design been reviewed and NA approved by the Regional Social Development Unit or Practice Manager?

IR_TABLE OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework Yes (as appropriate) been prepared?

If yes, then did the Regional unit responsible for safeguards or Practice Manager No review the plan?

Is physical displacement/relocation expected? TBD

Is economic displacement expected? (loss of assets or access to assets that leads TBD to loss of income sources or other means of livelihoods)

PIW_TABLE OP 7.50 - Projects on International Waterways Have the other riparians been notified of the project? NA

If the project falls under one of the exceptions to the notification requirement, has this been cleared with the Legal Department, and the memo to the RVP Yes prepared and sent?

Has the RVP approved such an exception? Yes

PDI_TABLE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for Yes disclosure?

The World Bank RESTRUCTURING ISDS Salado Integrated River Basin Management Support Project (P161798)

Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups Yes and local NGOs?

ALL_TABLE All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been Yes prepared for the implementation of measures related to safeguard policies?

Have costs related to safeguard policy measures been included in the project Yes cost?

Does the Monitoring and Evaluation system of the project include the monitoring Yes of safeguard impacts and measures related to safeguard policies?

Have satisfactory implementation arrangements been agreed with the borrower Yes and the same been adequately reflected in the project legal documents?

III. APPROVALS

Martin Benedikt Albrecht Task Team Leader(s) Victor Vazquez Alvarez

Approved By

Safeguards Advisor

Practice Manager/Manager

.

Note to Task Teams: End of system generated content