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Bolivia Multipurpose Drinking Water

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Bolivia Multipurpose Drinking Water DOCUMENT OF THE INTER-AMERICAN DEVELOPMENT BANK BOLIVIA MULTIPURPOSE DRINKING WATER AND IRRIGATION PROJECT FOR THE MUNICIPALITIES OF BATALLAS, PUCARANI AND EL ALTO (BO-L1080, BO-G1004, BO-X1012) OPERATION DEVELOPMENT PROPOSAL This document was prepared by the project team consisting of: Edgar Orellana (WSA/CPE), Team Leader; Alfred Grünwaldt, Alternate 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. CONTENTS PROJECT SUMMARY .......................................................................................................... 1 I. PROJECT DESCRIPTION AND RESULTS MONITORING ................................................... 3 A. Background, problems and justification ....................................................... 3 B. Objectives, Components, and Costs ........................................................... 8 C. Key Result Indicators...................................................................................... 9 II. FINANCING STRUCTURE AND MAIN RISKS ..................................................................10 A. Financing Instruments .................................................................................. 10 B. Environmental and Social Risks ................................................................. 10 C. Fiduciary risks ................................................................................................ 11 D. Other risks of the Project ............................................................................. 11 E. Feasibility analysis ........................................................................................ 12 III. IMPLEMENTATION AND MANAGEMENT PLAN ..............................................................14 A. Summary of Implementation Arrangements ............................................. 14 B. Summary of results monitoring arrangements ......................................... 15 - ii - ANNEXES Annex I Development Effectiveness Matrix (DEM) – Summary Annex II Results Matrix Annex III Fiduciary Agreements and Requirements Annex IV Environmental Classification and Safeguards ELECTRONIC LINKS REQUIRED 1. Development Effectiveness Matrix (DEM) 2. Multi-year Execution Plan and Annual Operating Plan 3. Monitoring and Evaluation Plan 4. Environmental and Social Management Report (ESMR) 5. Procurement Plan OPTIONAL 1. Technical Feasibility and TESA Studies 2. Social and Economic Feasibility of Drinking Water Projects 3. Financial Feasibility 4. Institutional Feasibility 5. Social Management 6. Operation Rules 7. Mainstreaming of Climate Change in TESA 8. Hydrology and Climate Change Study 9. Climate Risks Maps and GIS Database 10. Proposal of Integrated Management Plan for Jacha Jahuira and Khullu Kachi Watersheds 11. Framework of Analysis of robust decision-making for climate change adaptation: The case of the water supply system for La Paz-El Alto metropolitan area 12. Guidelines for the preparation of a drought management plan 13. Metropolitan Master Plan of Drinking Water and Sanitation of La Paz-El Alto and Adjoining Areas 14. Program Costs Chart and Sources of Financing 15. Key Indicators of the Results Matrix 16. Analysis of compliance with the Bank’s Policy of Residential Public Services 17. Guidelines for the creation of the COTEMU 18. Lessons learned during the execution of programs REQUIRED APPENDIX 1. Risks Matrix - iii - ABBREVIATIONS PAG 2025 Patriotic Agenda AAPS Authority for Oversight and Social Control of Drinking Water and Basic Sanitation DW Drinking Water DW&S Drinking Water and Sanitation SSS Sanitary Sewage System W&S Water and Sanitation TA Technical Assistance CTA Comprehensive Technical Assistance COTEMU Technical Commission for the Operation of the Multipurpose Project CC Climate Change TC Technical Cooperation DEM Development Effectiveness Matrix COMDEV Community Development EMAGUA Environment and Water Executing Agency EPSAS Drinking Water and Sanitation Company of La Paz and El Alto EPSA Water and Sanitation Service Provider SCF Strategic Climate Fund IS Institutional Strengthening NDF Nordic Development Fund FSO Fund for Special Operations ADG Autonomous Departmental Governments AMG Autonomous Municipal Governments GoB Government of Bolivia GPM Multipurpose Program Management Department INE National Institute of Statistics of Bolivia ESMR Environmental and Social Management Report RM Results Matrix MEF Ministry of Economy and Public Finance IWM Integrated Watershed Management MMAYA Ministry of Environment and Water MPD Ministry of Development Planning EA Executing Agency O&M Operation and Maintenance PP Procurement Plan RP Resettlement Plan MYEP Multi-year Execution Plan ESMP Environmental and Social Management Plan SCMP Social Compensation and Management Plan MMPDWS Metropolitan Master Plan of Drinking Water and Sanitation of La Paz and El Alto AOP Annual Operating Plan SPBSD Sector Plan of Basic Sanitation Development WR Water Resources OR Operation Rules SECI Institutional Capacity Evaluation System SENARI National Irrigation Service TESA Technical, Economic, Social and Environmental Assessment IRR Internal Rates of Return NPV Net Present Value PROGRAM SUMMARY PLURINATIONAL STATE OF BOLIVIA MULTIPURPOSE DRINKING WATER AND IRRIGATION PROJECT FOR THE MUNICIPALITIES OF BATALLAS, PUCARANI AND EL ALTO (BO-L1080, BO-G1004, BO-X1012) Financial Terms and Conditions Borrowing country and Beneficiary: OC FSO SCF NDF Plurinational State of Bolivia Executing Agency: Environment and Water Term of 30 years 40 years N/A N/A Executing Agency (EMAGUA) repayment: Disbursement 1 5 years 5 years 5 years 5 years period : Amount Source % Grace period: 6 years 40 years N/A N/A (USD) Inspection and IDB (OC): 49.600.000 37 Surveillance * N/A N/A N/A Commission(c): IDB (FSO): 12.400.000 9 Based on Strategic Climate Interest rate: 0.25% N/A N/A (a) 42.500.000 32 LIBOR Fund (SCF) : Nordic Development Credit (b) 4.370.000 3 (c) * N/A N/A N/A Fund (NDF) : Commission : Local: 24.145.136 18 Currency of United approval: States Dollars US Dollars Total: 133.015.136 100 charged to ordinary capital Project Outline Project Objective/Description. Objectives. The overall objective of this program is to improve drinking water service delivery in the municipality of El Alto, taking climate change resilience aspects into account. The specific objectives are to: (i) increase water availability for the water supply system of El Alto and the communities of the municipality of Batallas; (ii) improve and expand the use of the irrigation systems in the municipalities of Pucarani and Batallas; (iii) promote integrated WR management and sustainable use of natural resources in the context of climate change. Special contract provisions that must be fulfilled before the first disbursement of funds: (i) an intergovernmental agreement must be signed by the EMAGUA, the Ministry of Environment and Water, the Ministry of Development Planning and the Ministry of Economy and Public Finance(d), for the purpose of transferring the loan resources and non-refundable funds as well as the execution and coordination of the activities under the program, in accordance with the terms and conditions previously agreed with the Bank, and such agreement must be in effect; (ii) the Multipurpose Program Management Department must be created and its specialized technical personnel selected in conformity with the terms and conditions previously agreed with the Bank (¶Error! Reference source not found.); (iii) the program Operation Rules (OR) must be approved and in effect pursuant to the terms and conditions previously agreed with the Bank; and (iv) and initial report must be submitted to the Bank including the multi-year execution plan, the procurement plan, the financial plan, and the program risks and Results Matrix (¶Error! Reference source not found.). Special execution contract provisions: Prior to the commencement of infrastructure works in each of the municipalities participating in the program, the EMAGUA must provide evidence to prove that: (i) an intergovernmental agreement has been signed with the pertinent AMG to provide for works maintenance, local contributions and asset transfer2. In the case of El Alto works, an agreement must be subscribed with the EPSAS for the execution of works and O&M of systems. These agreements will be in accordance with the terms and conditions previously agreed with the Bank; (ii) the program’s environmental and social conditions established in the OR and ESMR have been fulfilled. Additionally, the COTEMU should be designed and in operation within three years from Program eligibility (¶Error! Reference source not found.). Exceptions to Bank´s policies: - The project qualifies (f) SV PE CC CI for : 1 For the SCF and the NDF, the execution and disbursement periods will be the same 2 Asset transfer will be included in the EMAGUA – AMG intergovernmental agreement and performed at the time of execution of the certificate of final acceptance. - ii - (a) These resources will be provided on a non-refundable basis and will be taken from the “Pilot Program for Climate Resilience (PPCR)” of the Climate Strategic Fund (the “Fund”). The availability of these resources will be subject to prior Fund’s approval.
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