PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Report No.: AB6241 Project Name Saint Lucia Hurricane Tomas Emergency Recovery Loan Region LATIN AMERICA AND CARIBBEAN

Public Disclosure Authorized Sector Roads and highways (40%); General education sector (20%); General water, sanitation and flood protection sector (15%); Health (15%); Central government administration (10%) Project ID P125205 Borrower(s) SAINT LUCIA Implementing Agency Ministry of Finance, Economic Affairs and National Development 3rd Floor, Financial Center Bridge Street Castries Saint Lucia Tel: +1 758 468 5500 Email: [email protected]

Public Disclosure Authorized Environment Category [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Date PID Prepared January 28, 2011 Estimated Date of December 13, 2010 Appraisal Authorization Estimated Date of Board March 3, 2011 Approval

1. Key development issues and rationale for Bank involvement

Saint Lucia is a small island economy with relatively strong social indicators. Although it is a middle income country, in 2006 28% of the population was estimated to live below the locally defined poverty line, and in 2008 approximately 16.8 % of the population was unemployed. The Public Disclosure Authorized island is mountainous of volcanic origin, with an area of 620 square km, 158 km of coastline, and an estimated population of 169,960 (2008).

Saint Lucia is an open, tourism-based economy, with revenues based on balance of payments statistics amounting to 40% of the gross domestic product (GDP). An important issue confronting Saint Lucia’s development is the vulnerability of its population and economy to a range of natural disasters, which can seriously impact the productive sectors of economy, such as tourism and agriculture, with particularly severe effects on communities and households. Saint Lucia is exposed to a range of natural hazards such as hurricanes, storm surges, floods, landslides, volcanoes and coastal erosion with hazards stemming from weather related phenomena including winds, rainfall, hurricane and droughts representing the most significant risk. Disasters caused by these hazards impose large costs on the country’s fragile economy and exacerbate poverty levels. The island experiences an annual hurricane season from June to Public Disclosure Authorized November, followed by a rainy season from November to January.

Saint Lucia was hit by Hurricane Allen in 1980, which caused extensive damage to the island as a Category 3 storm, and Tropical Storm Debbie (later Hurricane) in 1994. In 1988, Saint Lucia was severely impacted by the rains of the storm system that later developed into Hurricane Gilbert. It has also been affected to a lesser degree by several other storms that damaged neighboring countries, including Hurricane Ivan in 2004 and as mentioned above Hurricane Dean in 2007.

On October 30, 2010 Hurricane Tomas impacted Saint Lucia with maximum sustained wind speeds of 90-95 mph with higher gusts. The Hurricane caused torrential rain for 24 hours, resulting in total rainfall of 533 mm. The hurricane affected almost the entire island of Saint Lucia and inflicted severe damage from the northeastern coast to the southwestern region of the island. The bulk of the damages resulted from flash flooding and subsequent landslides that have cut roads, destroyed bridges, school and health facilities and homes and washed away entire river banks in the central and southwestern parts of the island.

According to the ECLAC Macro Socio-Economic Damage Assessment report (December 2010), the total impact from Hurricane Tomas represents 43.4% of Saint Lucia’s GDP - nine times agricultural GDP, three times tourism GDP, 62% of exports of goods and services, 19% of gross domestic investment and 47% of public external debt.

The Hurricane Tomas Emergency Recovery Project will provide needed additional resources to support Saint Lucia’s effort to rehabilitate damaged infrastructure and stabilize high-risk areas on an expedited basis. Proceeding with urgent rehabilitation works under BP/OP 8.00 will enable the commencement of work on strengthening vulnerable infrastructure prior to the 2011 hurricane season.

2. Proposed objective(s)

The project’s objective is to support the recovery and reconstruction efforts of the Government of Saint Lucia in the aftermath of Hurricane Tomas. The project activities include: i) strengthening the Government’s ability to analyze, assess, and integrate natural hazard and climate change risk reduction into national development policies and decision-making processes; and ii) rehabilitating damaged and vulnerable transport, health, and education infrastructure affected by the passage of Hurricane Tomas.

3. Preliminary description

The four components of the project are as follow: Component 1: Critical Imports (US$1.5 million). This component will finance the import of low- sulfur diesel fuel the Recipient has procured for electricity generation and transportation to resume and maintain economic activities shortly after Hurricane Tomas. The fuel will be financed retroactively, and the inclusion of this sole import is based on an assessment of Saint Lucia’s monthly import bill and review of satisfactory procurement practices.

Component 2: Institutional Strengthening and Hazard and Risk Analysis (US$ 1.5 million). This component will strengthen the institutional capacity of Ministry of Housing, the Ministry of Physical Development and Environment, and the National Emergency Management Organization (NEMO) including improving national capacity to evaluate and integrate natural hazard and climate change risk reduction into national development policy and decision-making processes using geo-referenced information; carry out various risk assessments and impact evaluation studies in highly affected areas and specific sectors; and review the National Disaster Management Plan and strengthen disaster management capacity.

Component 3: Reconstruction and Rehabilitation of Damaged Critical Public Infrastructure (US$11 million). This component will finance civil works, technical advisory services, and goods required for the rehabilitation of the damaged transport, health and education sectors infrastructure. These civil works will be executed to ensure that target structures are resilient to future adverse natural events, thereby reducing their vulnerability to disasters.

Component 4: Project Management and Monitoring Support (US$1 million). This component will strengthen and develop the institutional capacity of the Project Coordination Unit (PCU) for Project management and execution, including procurement, financial management, monitoring and supervision of Project activities, through the acquisition of goods, provision of technical advisory services, training and operating costs.

This project is an Emergency Recovery Loan (ERL) processed in accordance with Bank Operational Policy / Bank Procedures 8.00.

4. Safeguard policies that might apply [Guideline: Refer to section 5 of the PCN. Which safeguard policies might apply to the project and in what ways? What actions might be needed during project preparation to assess safeguard issues and prepare to mitigate them?]

Appropriate Environmental Assessment(s) will be conducted for any component and investment that may require an EA. Similarly, in the unlikely event that the project leads to land acquisition and/or resettlement, Abbreviated Resettlement Plans (ARPs) and/or Resettlement Action Plans (RAPs), as may be applicable, will be prepared for specific sub-projects in accordance with the project’s Resettlement Policy Framework.

Safeguard Policies Triggered by the Project Yes No

Environmental Assessment (OP/BP 4.01) X Natural Habitats (OP/BP 4.04) X Pest Management (OP 4.09) X Physical Cultural Resources (OP/BP 4.11) X Involuntary Resettlement (OP/BP 4.12) X Indigenous Peoples (OP/BP 4.10) X Forests (OP/BP 4.36) X Safety of Dams (OP/BP 4.37) X Projects in Disputed Areas (OP/BP 7.60)* X Projects on International Waterways (OP/BP 7.50) X

* By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties’ claims on the disputed areas 5. Tentative financing Source: ($m.) BORROWER/RECIPIENT 0 International Development Association (IDA) 15 Total 15

6. Contact point Contact: Niels B. Holm-Nielsen Title: Senior Disaster Risk Management Specialist Tel: (202) 458-1709 Fax: Email: [email protected]