Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD712 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT APPRAISAL DOCUMENT ON A PROPOSED LOAN Public Disclosure Authorized IN THE AMOUNT OF US$ 30 MILLION TO BELIZE FOR A CLIMATE RESILIENT INFRASTRUCTURE PROJECT July 9, 2014 Public Disclosure Authorized Urban, Rural and Social Development Global Practice Caribbean Country Unit Latin America and the Caribbean Region Public Disclosure Authorized This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective May 13, 2014) Currency Unit = Special Drawing Rights SDR = US$1 US$ = SDR 1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ACP Africa Caribbean Pacific Program of the European Community BCRIP Belize Climate Resilient Infrastructure Project BMDP Belize Municipal Development Project BSIF Belize Social Investment Fund CAPF Culturally Appropriate Participation Framework CAPP Culturally Appropriate Participation Plan CPS Country Partnership Strategy DRM Disaster Risk Management EA Environmental Assessment EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return EMF Environmental Management Framework EU European Union FM Financial Management FY Fiscal Year GDP Gross Domestic Product GFDRR Global Facility for Disaster Reduction and Recovery GIS Geographic Information System GNI Gross National Income GoB Government of Belize IBRD International Bank for Reconstruction and Development IFI International Financial Institution IFR Interim Financial Report IMF International Monetary Fund ISP Implementation Support Plan LIC Land Information Center M&E Monitoring and Evaluation MCE Multi-Criteria Evaluation MNRA Ministry of Natural Resources and Agriculture MoFED Ministry of Finance and Economic Development MoWT Ministry of Works and Transport NCRIP National Climate Resilient Investment Plan NEMO National Emergency Management Organization NGO Non-Government Organization NPV Net Present Value NSDI National Spatial Data Infrastructure OAS Organization of American States OP/BP Operational Policy/Bank Procedure ORAF Operational Risk Assessment Framework PAD Project Appraisal Document PDO Project Development Objective PMU Project Management Unit PPA Project Preparation Advance PPCR Pilot Program for Climate Resilience PPF Project Preparation Facility RMS Road Maintenance Strategy RMU Road Maintenance Unit SA Social Assessment SAO Senior Accounts Officer SLR Sea Level Rise UDP United Democratic Party UNFCCC United Nations Framework Convention on Climate Change Regional Vice President: Jorge Familiar Country Director: Sophie Sirtaine Senior Practice Director: Ede Jorge Ijjász-Vásquez Practice Manager: Anna Wellenstein Task Team Leader: Yoonhee Kim BELIZE Climate Resilient Infrastructure Project TABLE OF CONTENTS Page I. STRATEGIC CONTEXT .................................................................................................1 A. Country Context ............................................................................................................ 1 B. Sectoral and Institutional Context ................................................................................. 2 C. Higher Level Objectives to which the Project Contributes .......................................... 5 II. PROJECT DEVELOPMENT OBJECTIVES ................................................................6 A. PDO............................................................................................................................... 6 B. Project Beneficiaries ..................................................................................................... 6 C. PDO Level Results Indicators ....................................................................................... 7 III. PROJECT DESCRIPTION ..............................................................................................7 A. Project Components ...................................................................................................... 7 B. Project Financing .......................................................................................................... 9 C. Lessons Learned and Reflected in the Project Design .................................................. 9 IV. IMPLEMENTATION .....................................................................................................10 A. Institutional and Implementation Arrangements ........................................................ 10 B. Results Monitoring and Evaluation ............................................................................ 11 C. Sustainability............................................................................................................... 11 V. KEY RISKS AND MITIGATION MEASURES ..........................................................11 A. Risk Ratings Summary Table ..................................................................................... 11 B. Overall Risk Rating Explanation ................................................................................ 12 VI. APPRAISAL SUMMARY ..............................................................................................12 A. Economic and Financial Analysis ............................................................................... 12 B. Technical ..................................................................................................................... 13 C. Financial Management ................................................................................................ 13 D. Procurement ................................................................................................................ 14 E. Social (including Safeguards) ..................................................................................... 14 F. Environment (including Safeguards) .......................................................................... 15 G. Other Safeguards Policies Triggered .......................................................................... 16 ANNEX 1: Results Framework and Monitoring ......................................................................17 ANNEX 2: Detailed Project Description....................................................................................24 ANNEX 3: Implementation Arrangements ...............................................................................35 ANNEX 4: Operational Risk Assesment Framework (ORAF) ...............................................49 ANNEX 5: Implementation Support Plan .................................................................................54 ANNEX 6: Economic Analysis ....................................................................................................58 ANNEX 7: Map IBRD 33371 ......................................................................................................66 . PAD DATA SHEET Belize Climate Resilient Infrastructure (P127338) PROJECT APPRAISAL DOCUMENT . LATIN AMERICA AND CARIBBEAN Urban, Rural and Social Development Global Practice (GURDR) Report No.: PAD712 . Basic Information Project ID EA Category Team Leader P127338 B - Partial Assessment Yoonhee Kim Lending Instrument Fragile and/or Capacity Constraints [ ] Investment Project Financing Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date 17-Nov-2014 31-Aug-2019 Expected Effectiveness Date Expected Closing Date 15-Nov-2014 31-Aug-2019 Joint IFC No Senior Global Practice Practice Manager Country Director Regional Vice President Director Anna Wellenstein Ede Jorge Ijjasz-Vasquez Sophie Sirtaine Jorge Familiar . Borrower: Ministry of Finance Responsible Agency: Ministry of Finance Contact: Yvonne Hyde Title: CEO Telephone No.: (501) 822-2362 Email: [email protected] . Project Financing Data(in USD Million) [ X ] Loan [ ] IDA Grant [ ] Guarantee [ ] Credit [ ] Grant [ ] Other Total Project Cost: 30.00 Total Bank Financing: 30.00 Financing Gap: 0.00 . Financing Source Amount Borrower 0.00 International Bank for Reconstruction and 30.00 Development Total 30.00 . Expected Disbursements (in USD Million) Fiscal Year 2015 2016 2017 2018 2019 2020 0000 0000 Annual 1.00 2.00 7.00 11.00 9.00 0.00 0.00 0.00 Cumulative 1.00 3.00 10.00 21.00 30.00 30.00 0.00 0.00 . Proposed Development Objective(s) The objectives of the Project are: (a) to enhance the resilience of road infrastructure against flood risk and impacts of climate change; and (b) to improve the Borrower's capacity to respond promptly and effectively in an Eligible Crisis or Emergency, as required. Components Component Name Cost (USD Millions) Climate Resilient Infrastructure 21.50 Technical Assistance for Improved Climate Resilience 4.92 Management Project Management and Implementation Support 2.00 Contingent Emergency Response 1.00 . Institutional Data Practice Area / Cross Cutting Solution Area Social, Urban, Rural and Resilience Global Practice Cross Cutting Areas [ X ] Climate Change [ ] Fragile, Conflict & Violence [ ] Gender [ ] Jobs [ ] Public Private Partnership Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co-benefits % Co-benefits % Agriculture, fishing, and forestry Irrigation