The World Bank Lima Teleferico San Juan de Lurigancho -(Series 1) (P170609) Public Disclosure Authorized For Official Use Only Concept Environmental and Social Review Summary Public Disclosure Authorized Concept Stage (ESRS Concept Stage) Date Prepared/Updated: 10/11/2019 | Report No: ESRSC00869 Public Disclosure Public Disclosure Authorized Public Disclosure Authorized Oct 11, 2019 Page 1 of 21 The World Bank Lima Teleferico San Juan de Lurigancho -(Series 1) (P170609) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Peru LATIN AMERICA AND P170609 CARIBBEAN Project Name Lima Teleferico San Juan de Lurigancho -(Series 1) Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Transport Investment Project 4/2/2020 7/9/2020 For Official Use Only Financing Borrower(s) Implementing Agency(ies) Proposed Development Objective(s) The Series of projects (SoP) Development Objective is to improve mobility and accessibility to jobs and services in selected hillside urban settlements in Lima Metropolitan Municipality, MML by integrating them to mass transit services. The SoP is comprised of two urban cable car projects: San Juan de Lurigancho (SJL) and El Agustino (EA). The PDO of the SJL Project is to improve mobility and accessibility to jobs and services of the hillside settlements in Public Disclosure the SJL and Independencia districts of MML by integrating them to the BRT and metro services. Financing (in USD Million) Amount Total Project Cost 123.00 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] This proposed greenfield project is part of a cable-car program led by the Government of Peru - GoP - and the Metropolitan Municipality of Lima - MML. The first of the series will implement the first urban transport cable car with the objective of increasing integration, accessibility and mobility for the District of San Juan de Lurigancho's - SJL -hilly, low income settlements. The SJL cable-car project consists of a 6.1 kilometer cable car line with 3 intermediate Oct 11, 2019 Page 2 of 21 The World Bank Lima Teleferico San Juan de Lurigancho -(Series 1) (P170609) stations and two terminals. The cable car will increase access in SJL with connections to the Metropolitano BRT (northwest terminal of the project) and the Metro Line 1 (east terminal of the project). By generating the integration of urban transport between the BRT and Metro Line 1. D. Environmental and Social Overview D.1. Project location(s) and salient characteristics relevant to the ES assessment [geographic, environmental, social] Location and area of influence: The San Juan de Lurigancho Cable-Car (SJL-CC) will be located in the Municipalities of Independencia and San Juan de Lurigancho, north of Lima Province. Its 5 stations (with a footprint of approx. 1,800 to 2,800 m2 each, with towers occupying a footprint of around 36 m2 each) will be located at the following specific sites: S1: In front of El Naranjal Station, current terminal station of Lima’s Bus Rapid Transport (BRT) system, at the intersection of Tupac Amaru and Chinchaysuyo Avenues, in a highly urbanized area For Official Use Only S2: At the foothill of the Amancaes Mountain Range (AMR) west slope, within the 5 de Marzo settlement. The site currently serves as a small informal local cemetery, accommodating approx. 100 tombs S3: AMR west slope, within the Jesus de Nazareth settlement S4: AMR east slope, within the settlements of Vista Alegre, La Quebrada, Manos Unidas, and the Housing Associations of Canadá and Josué S5: Next to the San Carlos Station, current station of the Metro of Lima, at the intersection of El Sol Oeste and Proceres Avenues, in a highly urbanized area Environmental context: While the 2 terminal stations of the SJL-CC will be located in a highly urbanized area (with no presence of natural habitats), the 3 intermediate stations (S2, S3 and S4) will be located within the AMR, which harbors the “lomas de Amancaes”, and thus there is a potential overlap of these stations with the mentioned ecosystem. This ecosystem of coastal “lomas” is characterized by a patch of natural vegetation of approx. 200 ha immersed in an urban matrix, with unique endemic flora and fauna species. It provides important ecosystem services, such as water regulation and Public Disclosure erosion control. Despite of its importance, it is currently severely threatened by a disorganized urban growth. This ecosystem has been formally included within MINAGRI’s list of Fragile Ecosystems (RM 404-2013-MINAGRI), which are not considered National Protected Areas. Also, based on the reviewed information, the ecosystem is considered within 2 conservation proposals, at the local and regional level: “Lomas de Lima” Regional Conservation Area (promoted by the Municipality of Metropolitan Lima - MML) and “La Bella Durmiente” Ecotourist Reserve (promoted by the Municipality of Independencia). It should be emphasized that currently the area is not officially protected under national, regional or local regulations. Furthermore, locations of S2 and S3 seem to correspond to a government-owned area originally designated to serve as a 100 ha Park, and currently invaded. Finally, according to the available information, the AMR is characterized by unstable slopes and areas prone to landslides and falling rocks mainly due to seismic events and erosion processes. Social context: In relation to the social context, the project will take place in two districts with high levels of population, and with a high number of socioeconomically vulnerable people with a weak land tenure situation, particularly those living in the hills. These hills host some of the population expected to be displaced by the project, including physical and economic displacement. Most people whose houses are to be affected lack a formal title of property, and oftentimes don’t have access to basic services, which increases their level of vulnerability. In addition, many of the houses surrounding the project are in the hills and were built with weak structures in steep slopes subject to landslides, which could be exacerbated by construction works. Also important is the context of land trafficking in areas near the project, where Oct 11, 2019 Page 3 of 21 The World Bank Lima Teleferico San Juan de Lurigancho -(Series 1) (P170609) the improvements brought by the project can lead to an increase in the value of the land and the potential intensification of disputes between local leaders, particularly in areas near stations S2 and S3. Citizen security around stations located in the hills could be a potential issue as well and should be accounted for when planning the project. D. 2. Borrower’s Institutional Capacity The project was conceived by the Ministry of Housing, Construction and Sanitation (VIVIENDA), and will be transferred for implementation to the Municipality of Metropolitan Lima (MML). It is the first urban cable car project to be implemented in the city of Lima. The Project’s Implementation Unit (PIU) will be the Lima Toll Road Municipal Management Agency (EMAPE). EMAPE has experience in implementing high capacity toll roads, but has no previous experience in implementing cable car projects. EMAPE has some experience with World Bank financed projects, such as the First Metropolitano (Lima Urban Transport Project P035740) and the Metropolitano Extension (Lima Metropolitano North Extension Project P170595), currently under preparation. The PIU’s ability to manage social and environmental risks and impacts in accordance with the Bank’s ESF is low, and it lacks a specific unit to oversee the For Official Use Only social and environmental aspects of the project. To mitigate this risk, the PIU will need to hire additional environmental and social specialists to support this project, and its core team will receive training on the Bank’s ESF. The PIU also plans to formally establish a socio-environmental unit and a grievance mechanism unit. Furthermore, the Bank hired a consulting firm that conducted an assessment of the PIU’s capacity to implement environmental and social risk management measures in accordance with the ESF. The assessment concluded that the PIU has capacity to implement projects in compliance with the national legislation but that it will need strengthening to implement measures in accordance with the ESF. The capacity strengthening measures will be included in the Project’s Environmental and Social Commitment Plan (ESCP). Once construction is finalized, the MML will transfer the operation of the project to the newly created Lima-Callao Urban Transport Authority (ATU). The ATU, established in December 2018, will integrate and absorb the currently fragmented BRT and Metro authorities: Protransporte (Instituto Metropolitano Protransporte) and AATE (Autoridad Autonoma del Tren Electrico), respectively. However, the ATU is not yet operational, it has no qualified staff nor Public Disclosure experience on cable cars and transport integration. It is expected that its capacity will remain weak in its early years of operation. Even though ATU's first Board of Directors has been appointed in June 2019, and the government of Peru has allocated sufficient resources to start ATU operations, transitioning from the current institutional arrangements and building capacity at ATU is expected to occur over the next years. The World Bank is currently supporting the strengthening of the ATU to assure project sustainability in the long term (with PPIAF support), in three key areas: (i) governance for transport integration; (ii) international standards for urban transport authorities; and (iii) stakeholder communication. Given the complexity and the lessons learned from other urban transport projects supported by the World Bank in Lima, a robust engineering supervision firm will be hired to control the quality of works and progress.