Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD2229 Public Disclosure Authorized INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF US$300 MILLION TO THE Public Disclosure Authorized PROVINCE OF BUENOS AIRES WITH A GUARANTEE FROM THE ARGENTINE REPUBLIC FOR A SALADO INTEGRATED RIVER BASIN MANAGEMENT SUPPORT PROJECT March 17, 2016 Public Disclosure Authorized Water Global Practice Latin America And Caribbean Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Public Disclosure Authorized CURRENCY EQUIVALENTS Exchange Rate Effective Feb 17, 2017 Currency Unit = Argentine Peso (ARS) ARS 15.69 = USD1 USD 0.064 = ARS 1 FISCAL YEAR January 1 ‐ December 31 Regional Vice President: Jorge Familiar Country Director: Jesko S. Hentschel Senior Global Practice Director: Guang Zhe Chen Practice Manager: Rita E. Cestti Task Team Leader(s): Victor Vazquez Alvarez, Maria Catalina Ramirez ABBREVIATIONS AND ACRONYMS ADA Provincial Water Authority (Agencia del Agua) ARS Argentine Peso BPBA Banco de la Provincia de Buenos Aires CAF Development Bank of Latin America (Corporación Andina de Fomento) CBA Cost‐Benefit Analysis CPAI Provincial Council of Indigenous Affairs CPS Country Partnership Strategy DCyC The Procurement Department of the Ministry of Infrastructure and Public Services (Dirección de Compras y Contrataciones) DES Department of Environmental Studies DL Disbursement Letter DPGRE Provincial Directorate for Risk and Emergency Management (Dirección Provincial de Gestión de Riesgo y Emergencias) DPOH Provincial Department of Hydraulic Works (Dirección Provincial de Obra Hidráulica) DPOMFB Provincial Directorate of Multilateral and Bilateral Financing (Dirección Provincial de Organismos Multilaterales y Bilaterales) DSA Debt Sustainability Analysis ENSO El Niño Southern Oscillation ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan FM Financial Management GAO General Accounting Office GDP Gross Domestic Product GIS Geographic Information System GPP Gross Provincial Product GRM Grievance Redress Mechanism GRS Grievance Redress Service IBRD International Bank for Reconstruction and Development IDB Inter‐American Development Bank IFI International Financial Institutions INA National Water Institute (Instituto Nacional del Agua) INTA National Institute of Agricultural Technology (Instituto Nacional de Tecnología Agropecuaria) IRR Internal Rate of Return IUFR Interim Unaudited Financial Reports IWRM Integrated Water Resources Management LIDAR Light Detection and Ranging M&E Monitoring and Evaluation NGO Non‐Governmental Organization OM Project´s Operational Manual O&M Operation and Maintenance OP/BP Operational Policy/Bank Policy OPDS Provincial Agency for Sustainable Development (Organismo Provincial para el Desarrollo Sostenible) PBA Province of Buenos Aires PCR Physical Cultural Resources PDO Project Development Objective PIU Project Implementing Unit PMI Integrated Salado River Basin Management Plan (Plan de Manejo Integral de la Cuenca del Río Salado) PPSD Project Procurement Strategy for Development REIA Regional Environmental Impact Assessment SMN National Meteorological Service (Servicio Meteorológico Nacional) SORT Systematic Operations Risk‐Rating Tool SRB Salado River Basin TSA Treasury Single Account UCEPO Project and Works Coordination and Execution Unit (Unidad de Coordinación y Ejecución de Proyectos de Obra) UHI Undersecretariat of Hydraulic Infrastructure (Subsecretaría de Infraestructura Hidráulica) WB World Bank WRM Water Resources Management The World Bank Salado Integrated River Basin Management Support Project (P161798) BASIC INFORMATION Is this a regionally tagged project? Country(ies) Lending Instrument No Investment Project Financing [ ] Situations of Urgent Need of Assistance or Capacity Constraints [ ] Financial Intermediaries [ ] Series of Projects Approval Date Closing Date Environmental Assessment Category 06‐Apr‐2017 30‐Dec‐2022 A ‐ Full Assessment Bank/IFC Collaboration No Proposed Development Objective(s) To enhance flood protection and strengthen the capacity of the responsible institutions for integrated water resources monitoring and management in the Salado River Basin. Components Component Name Cost (US$, millions) Integrated Water Resources Management 27.75 River Training Works and Upgrading Associated Infrastructure 337.70 Project Implementation, Supervision and Communication 8.80 Organizations Borrower : Province of Buenos Aires Implementing Agency : Ministry of Infrastructure, Province of Buenos Aires Page 1 of 88 The World Bank Salado Integrated River Basin Management Support Project (P161798) [ ✔ ] [ ✔ ] IBRD [ ] IDA Credit [ ] IDA Grant [ ] Trust [ ] Counterpart Funds Parallel Funding [ ] Crisis Response [ ] Crisis Response Financing Window Window [ ] Regional Projects [ ] Regional Projects Window Window Total Project Cost: Total Financing: Financing Gap: 375.00 375.00 0.00 Of Which Bank Financing (IBRD/IDA): 300.00 Financing (in US$, millions) Financing Source Amount Borrower 75.00 IBRD‐87360 300.00 Total 375.00 Expected Disbursements (in US$, millions) Fiscal Year 2017 2018 2019 2020 2021 2022 2023 Annual 0.00 27.80 47.05 88.98 62.97 50.65 22.55 Cumulative 0.00 27.80 74.85 163.83 226.80 277.45 300.00 INSTITUTIONAL DATA Practice Area (Lead) Water Page 2 of 88 The World Bank Salado Integrated River Basin Management Support Project (P161798) Contributing Practice Areas Environment & Natural Resources Social, Urban, Rural and Resilience Global Practice Gender Tag Does the project plan to undertake any of the following? a. Analysis to identify Project‐relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF Yes b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment Yes c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes SYSTEMATIC OPERATIONS RISK‐RATING TOOL (SORT) Risk Category Rating 1. Political and Governance Moderate 2. Macroeconomic Moderate 3. Sector Strategies and Policies Moderate 4. Technical Design of Project or Program Substantial 5. Institutional Capacity for Implementation and Sustainability Substantial 6. Fiduciary Moderate 7. Environment and Social Substantial 8. Stakeholders Moderate 9. Other Substantial 10. Overall Substantial Page 3 of 88 The World Bank Salado Integrated River Basin Management Support Project (P161798) COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✔] No Does the project require any waivers of Bank policies? [ ] Yes [✔] No Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 ✔ Natural Habitats OP/BP 4.04 ✔ Forests OP/BP 4.36 ✔ Pest Management OP 4.09 ✔ Physical Cultural Resources OP/BP 4.11 ✔ Indigenous Peoples OP/BP 4.10 ✔ Involuntary Resettlement OP/BP 4.12 ✔ Safety of Dams OP/BP 4.37 ✔ Projects on International Waterways OP/BP 7.50 ✔ Projects in Disputed Areas OP/BP 7.60 ✔ Legal Covenants Sections and Description Project Implementation Unit. Section I.A.1 of Schedule 2 to the Loan Agreement. The Borrower, through MoI, shall operate and maintain, at all times during Project implementation, a Project implementation unit (“UCEPO”), with the structure, functions and responsibilities set forth in the Operational Manual. Collaboration Entities. Section I.A.3 of Schedule 2 to the Loan Agreement. 3. Prior to the carrying out of any given activity under Part 1 of the Project which requires the participation of any Collaboration Entity, the Borrower, through UCEPO, shall enter into an agreement (the Collaboration Agreement) with the corresponding Collaborating Entity, all under terms and conditions acceptable to the Bank, which shall include, inter alia, the responsibilities of the pertinent Collaboration Entity for assisting the Borrower in the implementation of Part 1 of the Project. Page 4 of 88 The World Bank Salado Integrated River Basin Management Support Project (P161798) Safeguards. Section I.D.1 of Schedule 2 to the Loan Agreement. Without limitation to the provisions of Section 3.01 of this Agreement, the Borrower, shall carry out the Project in accordance with the Environmental and Social Impact Assessment (ESIA), Environmental and Social Management Plan (ESMP) and the Indigenous Peoples Planning Framework (IPPF). Indigenous Peoples Planning Framework (IPPF). Section I.D.2 of Schedule 2 to the Loan Agreement. With respect to the carrying out of any activities under Part 1 of the Project, and when so determined by the Bank as set forth in the IPPF, the Borrower, through MoI, MoE, ADA and DPOH, shall: (a) prior to the carrying out of any said activity, prepare and/or cause to be prepared and furnish to the Bank, an indigenous peoples’ plan, acceptable to the Bank (which plan shall be consistent with the pertinent provisions of the IPPF); and (b) thereafter, adopt and implement (and/or cause to be adopted and implemented) said indigenous peoples’ plan in accordance with its terms and in a manner acceptable to the Bank. Technical Assistance. Section I.D.3 of Schedule 2 to the Loan Agreement. The Borrower, through MoI, MoE, ADA and DPOH, shall ensure that the terms of reference for any consultancies related to the technical assistance