Program information document (pid) appraisal stage



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Advisory Committee. The existing high-level advisory committee for project preparation will be expanded and include representatives from other central and local-level government agencies and non-governmental organizations as required (depending on the nature of the issue to be addressed). This committee will be chaired by the Minister of Inter-Institutional Coordination with the participation of the Ministry of Finance, MOPT, Ministry of Culture, Youth and Sports, and the Municipality of Limon. The Committee will be responsible for approving the project’s Operative Plans and monitoring reports, and will meet regularly to review and take the necessary action regarding project objectives and implementation progress.
Project Coordination Unit. As stated before, the overall project oversight and coordination will be the responsibility of the Ministry of Finance through a Project Coordination Unit (PCU). The PCU will be responsible for all project implementation activities including procurement, accounting, financial reporting, auditing, monitoring and evaluation, inter-governmental coordination, and communication. The PCU will be, at its minimum, comprised of a General Coordinator, an Operations Coordinator, a Procurement Specialist, a Financial Management Specialist, a Lawyer, a Communications Specialist and an M&E Specialist. The PCU will have permanent offices in both San Jose and Limon.
Execution Agreements. Cooperation Agreements are a key factor to ensure the appropriate functioning of the implementation arrangements of the project. These will be signed by the Ministry of Finance and each of the technical agencies implementing the different project components. Under these Agreements, the Ministry of Finance/ PCU will act as procurement and financial agent for the autonomous agencies responsible for project implementation, undertaking the contracting in the name and on behalf of the respective autonomous agency. This entails a split of responsibilities regarding procurement processes and financial management (in charge of the PCU) and technical decisions—including preparation of TORs and bidding documents, review of proposals from a technical standpoint, and supervision of works—in charge of each autonomous agency.



  1. Poverty, Social, and Environment Aspects


Social

As a basis for project preparation, a socio-economic diagnostic of Limon was carried out to define a poverty profile. This study indicated a direct relationship between poverty levels and the following variables: (i) gender of head of household (51 percent of female headed households fall below the poverty line); (ii) unemployment (89 percent of the unemployed live in poverty; 33 percent in extreme poverty); (iii) type of employment (private sector employees and temporal employees face higher levels of poverty than public employees); (iv) type of insurance (60 percent of pensioners are poor). Surprisingly, variables such as ethnicity and level of education proved to be non significant in terms of determining levels of poverty.


The result of this study led to the conclusion that the most effective way of combating poverty in Limon is through the generation of new sources of income and employment, particularly for the most vulnerable groups18. The Local Governance component seeks to empower poor and vulnerable groups by giving them voice in local planning processes and establishing participatory monitoring of municipal services.
The socio-economic demonstrated that the generalized perception that Afro-descendants face particular disadvantages in terms of socio-economic opportunities in Limon is mistaken. They make up 46 percent of the total population and have higher levels of education than other ethnic groups (except the Chinese). Overall, Afro-descendants have lower levels of poverty, with the exception of Afro-descendant female-headed households, which tend to have higher levels of extreme poverty than female-headed households pertaining to other ethnic groups. The project will encourage cultural micro enterprises led by women and youth.
A stakeholder analysis conducted as part of the preparation of the project was an important input for designing and implementing a consultation and communication strategy throughout the different stages of project preparation. Extensive consultations were held involving locally elected authorities (including the major and municipal council), and civil society organizations, including trade unions, business chambers, community and cultural organizations, religious leaders and universities. The Bank team engaged in broad consultations with the heads and officials of key governmental agencies involved in project preparation and leaders of political parties represented in the National Congress.
Environment

During project preparation, a series of activities and studies were carried out to ensure the project environmental sustainability and compliance with national environmental legislation and with the Bank’s Safeguard Policies. Requirements for studies and socio-environmental management instruments were requested by the Bank’s Safeguard Advisory Team and were agreed with the GoCR. The GoCR prepared the respective Environmental Assessment Report (EAR), which resumes each document and the environmental screening of the activities which will be financed by the project. These documents, which are part of the Project’s Environmental Assessment, are available in the Bank’s Infoshop.


The project’s EAR focused on the following aspects: a) overall environmental assessment of the project; b) submission of the environmental studies and instruments developed during project preparation; and c) preliminary environmental assessment (screening) of the subprojects.
a. Overall Environmental Assessment of the project. The project has been classified as a “Category B”, in accordance with the Environmental Assessment Policy [OP 4.01]. In general, the nature of the works to be financed by the project will not have significant direct or indirect socio-environmental impacts that could endanger the natural or social environment in its area of influence. Additionally, the measures or actions to prevent, mitigate, and/or compensate for potential socio-environmental impacts are easy to identify and, with proper management, the environmental and social sustainability of subprojects/activities can be assured.
b. Environmental Studies carried out. During project preparation, the following environmental studies were carried out: i) Environmental and Social Management Framework (ESMF) for the Project; ii) Quick Urban Environmental Assessment (QUEA); iii) Study of capacity and identification of potential conservation and/ or sustainable use activities in Quiribrí Park (Uvita Island); iv) Update of the Environmental Management Plan for the El Limoncito Wildlife Refuge; and v) Preliminary Environmental Assessment of the Cariari Recreational Park. As a product of those studies developed during project preparation, the above referred Environmental Assessment Report was prepared.
c. Environmental Assessment of the subprojects. A preliminary environmental assessment (screening) was carried out for the subprojects identified in the project, applying the Environmental and Social Management Framework. The activities that may potentially have negative environmental and social impacts are mainly related to: the construction, expansion, and rehabilitation of drainage and sanitary sewer systems; the rehabilitation of railway sections, the construction of a railway bridge over the Chirripó River, and the rehabilitation of warehouses on the route to Leesville; works to rehabilitate the historic center and work to improve the city’s urban environment; and rehabilitation of the Cariari Recreational Park and Isla Uvita.


  • The drainage activities entail the rehabilitation and enlargement of an existing channel located in the area of direct influence of the wetland Limoncito, declared as a National Refuge of Wildlife. Since the works will be executed in an existing channel which design will permit to evacuate the surplus water upstream of the wetland, it is expected that this work will not affect the current conditions of the ecosystem. Nevertheless the foreseen drainage activities were classified after the environmental screening as of MODERATE-HIGH environmental and social risk (Category B1), because is located in a sensitive area as per the national environmental legislation and the Environmental and Social Management Framework (ESMF). This will require the preparation of an Environmental Impact Assessment (EIA) to assure the environmental sustainability of these activities.




  • The sanitary sewage activities in Limoncito and Los Baños, consist of expansions of the existing network and the construction of wells to interconnect the system where the water served will be conducted to a Treatment Plant and subsequently evacuees through an emissary submarine that has the capacity to increase this new volume. In this sense, no significant environmental impacts are anticipated that could cause social and environmental negative impacts. Nevertheless, given the category of the activities as of MODERATE-LOW environmental and social risk (Category B2), it will be required to develop the respective Environmental Management Plan (EMP) to assure an adequate environmental management of the direct and indirect negative impacts that be produced with the execution and operation of the works.




  • No significant environmental impacts are expected from the rehabilitation of the railway line and the construction of the bridge over the Chirripó river. Nevertheless, complementary works related to the road safety and impacts of noise should be included in the technical feasibility design, since the railroad crosses some towns along the train line which population may be affected especially during the construction. These activities were thus classified as of MODERATE-LOW environmental and social risk (Category B2), reason by which to comply with the national environmental legislation will require to develop the respective EMP for assure an adequate management of the potential social and environmental impacts that can be produced with the execution of the works and their subsequent operation.




  • On the improvement of the Recreational Cariari Park, most part of the infrastructure required already exist, but in abandonment. Investments in the construction of physical infrastructure will not affect the most sensitive areas of the Park. This activity has benefited from INBIO advice, institution of recognized prestige at national and international level regarding the sustainable management of biodiversity. Additionally, this activity will include as part of its attractions, the marine corridor between the Cariari Park and the Uvita Island, another marine ecosystem. Overall, this activity has been categorized as of MODERATE environmental and social risk (Category B1), which will require the preparation of the a EMP. During project preparation, a Preliminary Environmental Assessment of the Cariari Park was carried out and included a sampling of the fauna and flora of the zone, its respective ecological zoning and the pre-design of the intervention to show the social, environmental, technical, and economic viability of the subproject.




  • Regarding the rehabilitation of the historic buildings and investments in urban recreational areas, given the characteristics of the foreseen works, no significant environmental impacts that could put in risk the natural and social environment are expected. On the contrary, the foreseen activities represent a HIGH POSITIVE impact for the population of Limón who will benefit directly from these new spaces and urban cultural renew, and for visitors from the cruisers and elsewhere. These activities have been classified as of LOW environmental and social risk (Category C), and will be require a “Declaración Jurada of Environmental Impact” in accordance with the national environmental legislation and the ESMF.




  1. Contact point

Contact: Cecilia Corvalán

Title: Senior Transport Economist

Tel: (202) 473-3295

Fax:


Email: ccorvalan@worldbank.org


  1. For more information contact:

The InfoShop

The World Bank

1818 H Street, NW

Washington, D.C. 20433

Telephone: (202) 458-4500

Fax: (202) 522-1500

Email: pic@worldbank.org

Web: http://www.worldbank.org/infoshop



1 Costa Rica continues to have one of the lowest poverty headcounts in Latin America with 9 percent living on an income of less than US$ 2 a day. Costa Rica: Country Economic Memorandum: The Challenges for Sustained Growth, World Bank 2006.

2 Costa Rica - Poverty Assessment: Recapturing Momentum for Poverty Reduction. The World Bank, May 12, 2007.

3 Costa Rica Poverty Assessment, World Bank 2007.

4 The Port of Limón is the main port of the country. It is composed of two port terminals: (i) the terminal of Limon, located in the city of Limon itself; and (ii) the terminal of Moín, located 7 kilometers to the east. The term “Port of Limon” in this document makes reference to both terminals.

5 Including Panama.

6 The inefficiency of Costa Rican ports is estimated to result in over 15 percent of container cargo moves through Panama, absorbing an estimated US$70-100 million in additional road haulage costs per year. Costa Rica: Country Economic Memorandum: The Challenges for Sustained Growth, World Bank 2006.

7 Costa Rica Investment Climate Assessment, World Bank p. xviii

8 Since December 2002, Costa Rican mayors are directly elected rather that appointed. During project preparation, the Bank team interacted with both the first and second democratically elected mayors.

9 Jamaica Town, Corrales 1 and 2, parts of New Town (Pueblo Nuevo) and the housing projects of INVU (Instituto Nacional de Vivienda y Urbanismo) are an exception to the rule.

10 FLACSO, 2004

11 San José has a rate of 8.5 homicides per 100,000 inhabitants; while Punta Arenas has a rate of 8.6 per 100,000 (the third nationwide). Source for these figures was La Nación, 2006. Fundación Arias

12 CPTED – Crime Prevention Through Environmental Design

13 With the withdrawal of the UFCO, the entry of the state, and the subsequent presence of multiple central government agencies that either took over responsibilities once in hands of the UFCO (the port authority –JAPDEVA-, the railway company –INCOFER-, the power agency –ICE-, the public hospital, etc.), or managed strategic new state investments (the national oil refinery –RECOPE) the great majority of jobs were created by the public sector.

14 These figures are related to the country as a whole, and not only to the Port of Limon.

15 SOURCE: The Latin America Competitiveness Review 2006, World Economic Forum.

16 The Concession National Council –CNC- has been entrusted with the structuring of the Port of Limon concession. CNC envisages to use loan proceeds to finance technical audits of some ongoing studies, as well as to complement them with additional analysis.

17 The Concession National Council –CNC- has been entrusted with the structuring of the Port of Limon concession. CNC envisages to use loan proceeds to finance technical audits of some ongoing studies, as well as to complement them with additional analysis.

18 Including women (20 percent of the female EAP is unemployed) and the young (35 percent of the EAP between 12-25 is unemployed), particularly young males (51 percent of the male EAP between 12-25 is unemployed).


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