World Bank Document - Ana

114 Pages·2011·2.65 MB·English

by  World Bank Group

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Report No: 59014-BR

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PROPOSED LOAN

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June 3, 2011

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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 November 10, 2010)
Currency Unit = Real (R$)
R$ 1.00 = US$0.5859
US$1.00 = R$ 1.7066

FISCAL YEAR
January 1 – December 31

ABBREVIATIONS AND ACRONYMS

ANA Agência Nacional de Águas National Water Agency
CERH Conselho Estadual de Recursos Hídricos State-level Water Resources Councils
CGP Comitê Gestor do Programa Interministerial Management Committee
CGU Controladoria Geral da União Office of the Controller General
CNRH Conselho Nacional de Recursos Hídricos National Council on Water Resources
CODEVASF Companhia de Desenvolvimento dos Vales Development Company for the São Francisco and
do São Francisco e Parnaíba Parnaíba Valleys
COF Coordenação de Orçamento e Finanças Budget and Finance Coordinator
CPS Estratégia de Parceria para o País Country Partnership Strategy
CQS Seleção Baseada na Qualificação do Selection Based on the Consultants’ Qualifications
Consultor
DARIN Diretoria de Articulação Institucional Director of Institutional Coordination
DNOCS Departamento Nacional de Obras Contra as National Department of Works Against Droughts
Secas
EIA Estudo de Impacto Ambiental Environmental Impact Assessment
EnvTAL Projeto de Assistência Técnica para a Environment Sector Technical Assistance Loan
Agenda de Sustentabilidade Ambiental
ESMF Arcabouço de Gestão Ambiental e Social Environmental and Social Management Framework
EsTAL Projeto de Assistência Técnica ao Setor de Energy Sector Technical Assistance Loan
Energia
ESW Relatório Econômico e Setorial Bank Economic and Sector Work
FM Gerenciamento Financeiro Financial Management
FMA Avaliação de Gerenciamento Financeiro Financial Management Assessment
FMIS Sistema de Informação de Gerenciamento Financial Management Information System
Financeiro
FSL Empréstimo com Amortização Constante Fixed-spreads Loan
FUNAI Fundação Nacional do Índio Federal Foundation for Indigenous Peoples
FY Ano Fiscal Fiscal Year
GDP Produto Nacional Bruto Gross domestic product
GEAPR Gerência de Acompanhamento de Projetos SIP/ANA’s Projects General Supervision
da SIP/ANA Management Unit
GEF Fundo Global para o Meio Ambiente Global Environmental Facility
GEPRO Gerência Técnica de Projetos da SIP/ANA SIP/ANA’s Projects Technical Supervision
Management Unit
GoB Governo do Brasil Government of Brazil
GSAN Sistema Integrado de Gestão de Serviços de Integrated Management System for Water
Saneamento Supply and Sanitation
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IBRD Banco Internacional para Reconstrução e International Bank for Reconstruction and
Desenvolvimento Development
ICB Concorrência Pública Internacional International Competitive Bidding
ICR Relatório de Encerramento do Projeto Implementation Completion and Results Report
IEG Grupo de Avaliação Independente Independent Evaluation Group
IFC Corporação Financeira Internacional International Finance Corporation
IFR Relatórios Financeiros Interinos Interim Financial Reports
IIPC Painel Intergovernamental sobre Mudança Intergovernmental Panel on Climate Change
Climática
INMETRO Instituto Nacional de Metrologia, National Institute of Metrology, Normalization and
Normalização e Qualidade Industrial Industrial Quality
IPHAN Instituto do Patrimônio Histórico e Artístico National Institute for Historical and Artistic Heritage
Nacional
IPPF Arcabouço para Planejamento de Povos Indigenous Peoples Planning Framework
Indígenas
JMP Programa de Monitoramento Conjunto Joint Monitoring Program
LCR Região da América Latina e Caribe Latin America and Caribbean Region
LCS Seleção pelo Menor Custo Least-cost Selection
M&E Monitoria e Avaliação Monitoring and Evaluation
MCid Ministério das Cidades Ministry of Cities
MI Ministério da Integração Nacional Ministry of National Integration
MIC País de Renda Média Middle Income Country
MMA Ministério do Meio Ambiente Ministry of Environment
MOP Manual Operacional do Projeto Project Operational Manual
NCB Concorência Pública Nacional National Competitive Bidding
NGO Organização Não Governamental Nongovernmental Organization
O&M Operação e Manutenção Operation and Maintenance
PAC Programa de Aceleração do Crescimento Growth Acceleration Program
PAD Documento de Avaliação do Projeto Project Appraisal Document
PDO Objetivos de Desenvolvimento do Projeto Project Development Objectives
PMSS Projeto de Modernização do Setor Water Sector Modernization Project
Saneamento
PMU Unidade de Gerenciamento do Projeto Project Management Unit
PNRH Plano Nacional de Recursos Hídricos National Water Resources Plan
POA Plano Operativo Anual Annual Operational Plan
PPA Plano Plurianual Multiyear Plan
PPP Parceria Público-Privada Public-Private Partnership
PROAGUA Programa Nacional de Desenvolvimento dos Federal Water Resources Management Project –
Nacional Recursos Hídricos Additional Financing
PROAGUA Sub-programa de Desenvolvimento de Federal Water Resources Management Project
Semi-árido Recursos Hídricos para o Semi-Árido
Brasileiro
PROSANEAR Programa de Saneamento para Populações Low Income Sanitation Technical Assistance Project
em Áreas de Baixa Renda
QCBS Seleção com Base em Qualidade e Custo Quality- and Cost-Based Selection
REA Avaliação Ambiental Regional Regional Environmental Assessment
RIMA Relatório de Impacto no Meio Ambiente Environmental Impact Report
RP Plano de Reassentamento Resettlement Plan
RPF Arcabouço da Política de Reassentamento Resettlement Policy Framework
SAF Superintendência de Administração, ANA’s Superintendence of Administration, Finances
Finanças e Gestão de Pessoas da ANA and Human Resources
SAT Equipe de Salvaguardas Safeguards Advisory Team
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SBD Documento Padrão de Licitações Standard Bidding Document
SEA Avaliação Ambiental Estratégica Strategic Environmental Assessment
SEAIN Secretaria Especial de Assuntos Secretariat for International Affairs
Internacionais
SEDEC Secretaria Nacional de Defesa Civil National Secretariat of Civil Defense
SFC Secretaria Federal de Controledo Control Federal Secretariat of Control
SIAFI Sistema Integrado de Administração Integrated Federal Financial Administration System
Financeira
SIGMA Sistema de Informações Gerenciais Monitoring and Administrative Management System
SIH Secretaria de Infra-estrutura Hídrica Secretariat of Hydraulic Infrastructure
SIL Empréstimo de Investimento Específico Specific Investment Loan
SINDEC Sistema Nacional de Defesa Civil National Civil Defense System
SINGREH Sistema Nacional de Gerenciamento de National Water Resources Management System
Recursos Hídricos
SIP Superintendência de Implementação de ANA’s Superintendent of Implementation of
Programas e Projetos da ANA Programs and Projects
SNIRH Sistema Nacional de Informações sobre National Water Resources Information System
Recursos Hídricos
SINISA Sistema Nacional de Informações em National Information System on Basic Sanitation
Saneamento Básico
SNSA Secretaria Nacional de Saneamento National Secretariat of Environmental Sanitation
Ambiental
SOE Declaração de Gastos Statement of Expenditures
SRH Secretaria de Recursos Hídricos. Secretariat for Water Resources
SRHU Secretaria de Recursos Hídricos e Secretariat for Water Resources and Urban
Ambiente Urbano Environment
STN Secretaria do Tesouro Nacional National Treasury Secretariat
STP Secretaria Técnica do Projeto Project Technical Secretariat
TAL Empréstimo de Assistência Técnica Technical Assistance Loan
ToR Termo de Referência Terms of Reference
UPP Unidade de Preparação do Projeto Project Preparation Unit
WRM Gerenciamento de Recursos Hídricos Water Resources Management
WSS Abastecimento de Água e Saneamento Water Supply and Sanitation

Vice President: Pamela Cox
Country Director: Makhtar Diop
Sector Director: Laura Tuck
Sector Manager: Karin Kemper / Guang Zhe Chen
Task Team Leader: Manuel Contijoch / Thadeu Abicalil

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BRAZIL
BR Federal Integrated Water Sector Project – Interaguas

CONTENTS

Page
I.  STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 
A.  Country and sector issues.................................................................................................... 1 
B.  Rationale for Bank involvement ......................................................................................... 3 
C.  Higher-level objectives to which the project contributes ................................................... 4 
II.  PROJECT DESCRIPTION ................................................................................................. 5 
A.  Lending instrument ............................................................................................................. 5 
B.  Project Development Objective and key indicators ............................................................ 5 
C.  Project components ............................................................................................................. 6 
D.  Lessons learned and reflected in the project design ............................................................ 9 
E.  Alternatives considered and reasons for rejection ............................................................ 10 
III.  IMPLEMENTATION .................................................................................................... 11 
A.  Institutional and implementation arrangements ................................................................ 11 
B.  Monitoring and evaluation of outcomes/results ................................................................ 12 
C.  Sustainability..................................................................................................................... 12 
D.  Critical risks and possible controversial aspects ............................................................... 13 
E.  Loan/credit conditions and covenants ............................................................................... 14 
IV.  APPRAISAL SUMMARY ............................................................................................. 16 
A.  Economic and financial analyses ...................................................................................... 16 
B.  Technical ........................................................................................................................... 16 
C.  Fiduciary ........................................................................................................................... 16 
D.  Social................................................................................................................................. 17 
E.  Environment ...................................................................................................................... 18 
F.  Safeguard policies ............................................................................................................. 20 
G.  Policy exceptions and readiness ........................................................................................ 20 
Annex 1: Country and Sector or Program Background ......................................................... 21 
Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 32 
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Annex 3: Results Framework and Monitoring ........................................................................ 33 
Annex 4: Detailed Project Description ...................................................................................... 44 
Annex 5: Project Costs ............................................................................................................... 52 
Annex 6: Implementation Arrangements ................................................................................. 53 
Annex 7: Financial Management and Disbursement Arrangements ..................................... 66 
Annex 8: Procurement Arrangements ...................................................................................... 73 
Annex 9: Economic and Financial Analysis ............................................................................. 79 
Annex 10: Safeguard Policy Issues ............................................................................................ 81 
Annex 11: Project Preparation and Supervision ..................................................................... 91 
Annex 12: Documents in the Project File ................................................................................. 93 
Annex 13: Statement of Loans and Credits .............................................................................. 98 
Annex 14: Country at a Glance ............................................................................................... 102 
Annex 15: Maps: IBRD 333778 ............................................................................................... 104 
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BRAZIL

FEDERAL INTEGRATED WATER SECTOR PROJECT

PROJECT APPRAISAL DOCUMENT

LATIN AMERICA AND CARIBBEAN

LCSEN

Date: June 3, 2011 Team Leader: Manuel Contijoch and Thadeu
Abicalil
Country Director: Makhtar Diop Sectors: Public administration- Water,
Sector Director: Laura Tuck sanitation and flood protection (100%)
Sector Manager: Karin Kemper/Guang Zhe Themes: Water resources management (100%)
Chen
Project ID: P112073 Environmental category: Partial Assessment
Lending Instrument: Technical Assistance Joint IFC:
Loan Joint Level:

Project Financing Data
[X] Loan [ ] Credit [ ] Grant [ ] Guarantee [ ] Other:

For Loans/Credits/Others:
Total Bank financing (US$m.): 107.3325 million
Proposed terms: US Dollar denominated IBRD commitment linked Flexible Loan with a variable
spread, with level payments of principal, 5 year grace period and 30 years of loan term with all
conversion options selected and the Font-End fee capitalized.
Financing Plan (US$m)
Source Local Foreign Total
Borrower 35.7775 0.00 35.7775
International Bank for Reconstruction and 107.3325 0.00 107.332.5
Development
Total: 143.110 0.00 143.110

Borrower:
Federative Republic of Brazil

Responsible Agencies:
Ministerio do Meio Ambiente, MMA
Secretaria Executiva
Esplanada dos Ministérios - Bloco Bl. B - 6º andar
Brasília DF 70068-900
Brazil
Fax: [phone]/2015
[email protected]
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Agencia Nacional de Aguas
SPO, Área 05 Quadra 03 Bloco M
Brasilia DF 70610-200
Brazil
Tel: [phone] Fax: [phone]
[email protected]

Ministerio da Integracao Nacional, MI
Gabinete do Ministro
Esplanada dos Ministerios Bloco E, Sala 600
Brasilia DF 70062-900
Brazil
Tel: [phone] Fax: [phone] / 5812
[email protected]

Ministerio das Cidades, MCid
Secretaria Executiva
SAUS Quadra 01 Bloco H Ed. Telemundi II, 12º andar
Brasilia DF 70070-010
Brazil
Tel: [phone] Fax: [phone]
[email protected]

Estimated disbursements (Bank FY/US$m)
FY 2012 2013 2014 2015 2016 2017
Annual 10.7333 16.0999 21.4665 26.8331 26.8331 5.3666
Cumulative 10.7333 26.8331 48.2996 75.1328 101.9659 107.3325
Project implementation period: Start August 30, 2011 End: June 30, 2016
Expected effectiveness date: August 30, 2011
Expected closing date: December 31, 2016

Does the project depart from the CAS in content or other significant respects?
[ ] Yes [X] No
Ref. PAD I.C.
Does the project require any exceptions from Bank policies?
Ref. PAD IV.G. [ ] Yes [X] No
Have these been approved by Bank management? [ ] Yes [ ] No
Is approval for any policy exception sought from the Board? [ ] Yes [X] No
Does the project include any critical risks rated “substantial” or “high”?
[X] Yes [ ] No
Ref. PAD III.D.
Does the project meet the Regional criteria for readiness for implementation?
[X] Yes [ ] No
Ref. PAD IV.G.

Project development objective Ref. PAD II.C., Technical Annex 3
To support the Government of Brazil to improve the coordination and strengthen the capacity
among key federal institutions in the water sector toward an integrated approach.
Project description [one-sentence summary of each component] Ref. PAD II.D., Technical
Annex 4
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Component 1: Water Resources Management (US$44.2169 million) to provide support to the
deployment of tools and instruments to SINGREH; enhance institutional development; reduce
the disparities between the Borrower’s federal and states water management systems; identify
actions to mitigate and adapt to climate change; streamline procedures; and establish criteria for
ongoing monitoring and evaluation systems to increase efficiency and legal compliance of water
resources guidelines and policies with the Borrower’s 1997 Water Law No. 9.433 dated January
8, 1997, which established the National Water Resources Policy.
Component 2: Water, Irrigation and Disaster Risk Management (US$40.7335 million) to
provide support for institutional strengthening to improve water infrastructure, irrigation and
SINDEC activities, and to raise the overall assessment capacity of strategic existing water
infrastructure and disaster risk management capacity, including floods and droughts and other
hazards.
Component 3: Water Supply and Sanitation (US$32.4391 million) to provision support to the
implementation of the Borrower’s 2007 National Sanitation Law No. 11.445, the improvement
of the quality of the provision of water supply and basic sanitation services and contribution to
promote universal access to these services.
Component 4: Intersectoral Coordination and Integrated Planning (US$20.9606 million) to
provide support to integrated planning; identify areas of mutual interest, overlap, or conflict in
the sectoral plans which impact and/or depend upon water; carrying out of studies and
institutional improvements involving multiple sectors, and support water management and
conservation measures preferentially in the São Francisco and the Araguaia-Tocantins river
basins.
Component 5: Project Management, Monitoring and Evaluation (US$4.4916 million) to
provision support to: (i) the management of the operational aspects of the Project in order to
coordinate, monitor, and evaluate all of the interventions undertaken to ensure that they meet the
targets, timetables, and objectives originally specified and to ensure overall efficient
administration including reporting, financial management, and auditing of the Project; and (ii)
the effective transfer of knowledge and the use of best practices at the subnational level
including a strong communication program, through, inter alia, workshops and seminars to
inform the relevant stakeholders at the river basin, municipal, state, and federal levels.
Which safeguard policies are triggered, if any? Ref. PAD IV.F., Technical Annex 10
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); Involuntary
Resettlement (OP/BP 4.12); and Safety of Dams (OP/BP 4.37)
Significant, non-standard conditions, if any, for:
Ref. PAD III.F.

Board presentation: None

Loan effectiveness: (i) the regulations creating the Comitê Gestor do Programa and the Project
Management Units have been issued and published in form and substance satisfactory to the
Bank; and (ii) the Operational Manual has been adopted through a resolution (deliberação)
issued by the Comitê Gestor do Programa and published by the Borrower in form and substance
satisfactory to the Bank.
Covenants applicable to project implementation (Schedule 2, Section I, A, B, C and D; and
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Section V of the Loan Agreement): (a) carry out the Project in accordance with the Operational
Manual, including the Procurement Plan, the Annual Operating Plans, the Environmental
Management Framework and the Social Framework; (b) establish and thereafter maintain, until
the completion of the execution of the Project, an interministerial management committee (the
Comitê Gestor do Programa) to convene at least once every semester, and shall submit the
minutes of said meetings to the Bank; (c) establish, and thereafter operate and maintain, until the
completion of the execution of the Project, Project management units (the Project Management
Units) physically located in ANA, MMA, MI and MCid, all with competent staff in adequate
numbers with qualifications and experience satisfactory to the Bank; (d) establish no later than
three months after the establishment of the Comitê Gestor do Programa and thereafter maintain,
until the completion of the execution of the Project, a Project technical Secretariat for the Comitê
Gestor do Programa (the Project Technical Secretariat), to be physically located in ANA, and in
charge of overall Project coordination, including all intersectoral activities as set forth in the
Operational Manual; (e) at least once a year during Project implementation on or about
December 1, commencing on the first such date after the Effective Date, prepare and furnish to
the Bank a plan, acceptable to the Bank (the Annual Operating Plan for the Project’s operation
during the following twelve months); (f) ensure that the Project is carried out in accordance with
the provisions of the Anti-Corruption Guidelines; (g) through ANA, MMA, MI or MCid, shall,
prior to carrying out any Project activity which requires the assistance of a Participating Entity
(as determined by the Borrower in accordance with the provisions of the Operational Manual),
enter into an agreement (the Cooperation Agreement) with the relevant Participating Entity
under terms and conditions approved by the Bank as further specified in the Operational Manual
for purposes of assisting ANA, MMA, MI or MCid in the implementation of the respective Parts
of the Project under their responsibility, and thereafter maintain the pertinent Cooperation
Agreement throughout the implementation of the Project; (h) through the Project Management
Units: (a) implement the Project in accordance with the Environmental Management Famework
(including provisions for environmental assessment, natural habitats, pest management, forests,
chance finding of cultural property and safety of dams) and the Social Management Framework
(including provisions for indigenous peoples and involuntary resettlement); and (b) adopt the
procedures detailed in said Environmental Management Framework and Social Management
Framework for environmental and social screening, evaluation, implementation and monitoring
of the Project; (i) through, ANA, MMA, MI or MCid, shall ensure, and/or cause the Participating
Entities to ensure, that the terms of reference for any consultancy in respect of any Project
activity shall be satisfactory to the Bank following its review thereof and, to that end, such terms
of reference shall duly incorporate the requirements of the Bank Safeguards Policies then in
force, as applied to the advice conveyed through such technical assistance; and (j) carry out
jointly with the Bank, a mid-term review of the implementation of the Project and following
such Midterm Review, act promptly and diligently to take any corrective action as shall be
recommended by the Bank.

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