GOVERNMENT OF THE STATE OF SERGIPE

State Secretariat of Planning, Housing and Urban Development

SERGIPE WATER PROJECT

ENVIRONMENTAL ASSESSMENT

EXECUTIVE SUMMARY

October 25, 2010

Based on the Environmental and Social Assessments prepared by Alexandre Fortes, consultant

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ACRONYMS

ADEMA State Administration for the Environment APP P ermanent Preservation Area BOD Biochemical Oxygen Demand COGERH/CE Water Resources Management Company of Ceará COHIDRO Sergipe State Water Resources and Irrigation Development Company CONAMA National Environmental Counsel DAFA Anaerobic Up-flow Digester DESO State Water Supply and Sanitation Company ECM Environmental Construction Manual EMDAGRO Sergipe State Agricultural Development Company EMP Environmental Management Plan IGBE Brazilian Institute of Geography and Statistics IPHAN National Institute for Protection of Historical and Archeological Sites ITPS State Institute of Technology and Research RMA Metropolitan Region of Aracaju PAC Growth Acceleration Program RAP Resettlement Action Plan RPF Res ettlement Policy Framework SEAGRI State Secretariat for Agriculture SEBRAE Agency to Support the Entrepreneur and Small Businessman SEMARH State Secretariat of Environment and Water Resources SRH State Secretariat for Water Resources TAC Code of Conduct UAPAS Sergipe Water Project Technical Administration Unit WRM Water Resources Management WSS Water Supply and Sanitation

 

SERGIPE WATER PROJECT

1. Sergipe Water Project: Objectives and Scope ........................................................................... 1

2. Brief Description of the Sergipe River Basin ........................................................................... 3

3 Typology of Project Interventions and Their Potential Impacts ............................................... 5

3.1 Creation of Conservation Areas ................................................................................................ 5

3.2 Modernization of Water Infrastructure in the Sergipe River Basin ......................................... 6

3.3 Modernization and Recovery of the Irrigated Perimeters ........................................................ 8

3.4 Land and Water Management and Recovery of Degraded Areas in Micro-Basins ................. 9

3.5 Expansion and Improvement in the Water Supply Network ................................................. 11

3.6 Construction of Wastewater Systems ..................................................................................... 11

3.7 Construction of Urban Drainage System ............................................................................... 14

4. Environmental Assessment .................................................................................................... 14

4.1 World Bank Safeguard Policies ............................................................................................. 14

4.2 Overall Assessment of Environmental and Social Impacts of the Sergipe Water Project ..... 18

5 Arrangements for the Social and Environmental Management of the Project ........................ 22

6. Implementation Arrangements for the Project ........................................................................ 28

7. Insti tutional Strengthening Program ....................................................................................... 29

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I. SERGIPE WATER PROJECT: OBJECTIVES AND SCOPE

1. The State of Sergipe is emblematic of the water challenges facing Brazil. Water resources

and ass ociated infras tructure servi ces a re crucial elements for Brazil’ s sustain able and equitable d evelopment. This is p articularly true given the country ’s rapid urbanizatio n process, as Brazil has become one of the most urbanized countries in the world, but basic services, such as water supply and sanitation (WSS), have not been able to keep pace with rapid popu lation grow th and concentration. In addition, Brazil faces crucial water resources challenges related to scarc ity, not only in the northeast region but also in large metropolitan areas, pollution in urban conur bations w ithout adequate w astewater collection a nd trea tment as well as recu rrent droug hts and fl oods, which could be exacerbated by climate chang e and increased hy drological v ariability. The Stat e of Sergipe is currently struggling to confront these v ery problems in the context of rising urbanization, infor mality, water d emands and water poll ution. In addition, the S tate is engaged in a p articipatory plannin g proces s involving pu blic consu ltations with civ il society and citizen representatives to identify priority areas of intervention to improve the overall quality of life in the State. This process served as a key input to the State’s 2008-2011 econo mic d evelopment action plan, w hich selected integrated m anagement of natural and water resources, WSS services and solid waste management as three of th e government’s main priorities.

2. The Se rgipe Wa ter Proj ect ( Projeto Águas de Sergipe) ai ms to i mprove env ironmental

conditions in the Sergipe river basin through investments to recover degraded areas and promote the effic ient and sustainable use of w ater resources. The Proje ct a ims to tackle the chal lenge of r evitalizing the Sergipe river basin through a balan ced approach of integrated invest ments in w ater i nfrastructure, irrigat ed agriculture an d WSS services coupled with strengthening of the institutional and political framework and improving the integrated management of water resources and the environment in the State of Sergipe.

3. The P roject w ill be implemented by the S tate S ecretariat of Environment and Water

Resources (Secretaria de Estado do Meio Ambiente e dos Recursos Hídricos, SEMARH), through th e Pr oject Technical Ad ministration Unit (Unidade Técnica de Administração do Projeto Águas de Sergipe, UA PAS), and b y the S tate Water Supply and Sanitation Company (DESO). In addit ion to these implementing agencies, the following institutions will also benefit fro m t he proj ect: the Sta te Se cretariat for A griculture ( Secretaria de Estado da Agricultura e do Desenvolvimento Agrário, SEAGRI); the State Water Resources and Irrigation Developm ent Co mpany ( Companhia de Desenvolvimento de Recursos Hídricos e Irrigação, COHIDRO); th e S tate Ag ricultural Development Company ( Empresa de Desenvolvimento Agropecuário de Sergipe, EM DAGRO); the State Ad ministration for the Environ ment ( Administração Estadual do Meio Ambiente, ADEMA), and the State Institute of Technology and Research ( Instituto de Tecnologia e Pesquisa de Sergipe, ITPS), all of w hich are all linked to the Government of the State of Sergipe.

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4. The Project is structured into three components:

(i) Integrated Water Resources Management and Institutional Development, with the ob jective of strengthe ning the management of water r esources in the State of Sergipe, through activ ities designed to pr omote in tegrated policies and practices , coordinate water resources planning and management in related agencies, strengthen the i nstitutional and management capacity o f SEMARH, e nhance environmental protection through st udies on th e creation o f conserv ation areas ( Unidades de Conservação), support the monitoring a nd e valuation of th e results of the Project, among others; (ii) Water and Irrigation, with th e ob jective of achieving su stainability in the targeted irrigation per imeters, through activities to modernize water infrastructure in the J acarecica s ub-basin and irri gated perimeters, enhance the environmental management of irrigated agriculture through improved soil and water use practices in selected micro-basins and provide ca pacity b uilding and instit utional strengthening for SEAGRI, COHIDRO and EMDAGRO; and (iii) Water and Cities, with th e ob jective of co mplementing o ngoing State interventions fina nced by the Growth Accelerati on Program ( Programa de Aceleração do Crescimento, PAC) in the capital city and the Me tropolitan Region of Aracaju (Região Metropolitana de Aracaju, RMA), to improve the q uality of water and enhance th e environmental sus tainability of targe ted poor municipalities in the Sergipe riv er basin thr ough the expansion of WSS service s a nd urban drai nage infrastructure, as we ll as the improvement in the effici ency and quality of services offered by the St ate Water Sup ply and Sanitation Co mpany (DESO). The Project’s geographical focus is p rimarily urban, with project-fin anced investments expected to reach just over 70 percent of total investments in these areas.

5. In the c ontext of the Worl d Bank’s Safeguard Policies, specifically OP 4.01

Environmental Asse ssment, the Proj ect wa s classified as C ategory A. A s s uch, du ring project preparation a co mplete Environ mental A ssessment ( EA) of all project interventions was undertaken at a regional level, including analyses of actions designed to improve en vironmental conditions and th eir potential im pacts and benefits, as well as proposed measures to mitigate negative impacts and maximize positive impacts resulting from the proposed physical i nterventions. Th is assessment a lso i ncorporates an Environmental Management Plan (EMP) that includes all measures related to mitigation, monitoring and strengthening of institutional environmental management capacity, which will be adopted during project implementation. The EMP also comprises a framework for sub-projects not i dentified pr ior t o a ppraisal, includi ng a scree ning m echanism for categorization.

6. In additi on, although n either land acquisition nor physical displacement of p eople are

expected directly as a result of project activities, a Resettlement Policy Framework (RPF)

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was prepared to support the prepar ation of Resettlement Action Plans and the process of resettlement in th e un likely cas e it becomes necess ary. The Res ettlement P olicy Framework (RPF) provides guidance on t he mitigation of adverse socia l impacts, particularly for vulnerable grou ps, a nd take s into account issues of economic displacement if, for e xample, the construction of a wastewater pumping stati on or a wastewater treatment plan t affects t he livelihood of local resid ents in a targeted municipality. As the Proj ect will finan ce studies on t he creati on of conservation areas, and will address issues of human occupation of the Permanent Preservation Areas (Áreas de Preservação Permanente, APP ) in th e J acarecica I and Poção d a R ibeira irrigation perimeters to e nsure their e nvironmental co mpliance, the RPF includes a Resettlement Process Framework (PF) that prov ides guidance on how to m anage social and economic impacts d eriving fro m the r estriction of lo cal people’s access to environmentally protected areas.

7. It is important to note that the environmental assessment found that the Project’s overall

regional environmental impact will be highly positive.  

2. BRIEF DESCRIPTION OF THE SERGIPE RIVER BASIN

8. As the most important river basin in terms of economic and social dynamics, the Sergipe river basin is a true synthesis of the pressures the State of Sergipe faces in water scarcity and water quality. With more than one million inhabitants (half of which reside in only 65 percent of the total area of the RMA), the Sergipe river basin faces serious water scarcity, quality and environ mental prob lems. For example, th e pr ecarious sewerage sy stem, the deforestation and erosion along river banks, intermittent water supply and lack of suitable landfill sites for ad equate d isposal of solid w aste all directly or indirectly contribute to water quality deterioration within the basin. The existing water infrastructure, including water supply and irrigation r eservoirs, were built ov er 20 y ears ago; its current operational problems a nd obsolete equipment lea d to ine fficient water use and agricultural production. The lack of environ mental licensing and wate r rights procedures associated with the irregular occupation of se ctions of the APPs complete the list of the basin’s environmental issues.

9. Studies conducted by the Brazilian Inst itute of Geograph y and Stati stics ( Instituto

Brasileiro de Geografia e Estatística, IGBE), with data from the Family Budget Survey of 2002-2003, reveal that more than half of the population residing in the basin are poor. Data from the last census in 2000 show that 12 percent of the population has no monthly income. Th e high pop ulation growth in recent y ears has put further pressure on the demand for WSS se rvices and inf rastructure, which h as not b een met by i ncreased investments in the sector.

 

 

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Figure 1- Geographic Location of the State of Sergipe and the Sergipe River Basin

 

10. In addition to the climatic and geographic characteristics, the Sergipe river basin presents

certain social and economic dynamics as explained in the table below:

Table 1: Principal problems in the different regions of the Sergipe river basin

Territorial region

Predominant characteristics Principal problems

Upper Sergipe river - sertão

1. Low rainfall 2. Temporary rivers of poor water quality 3. Main economic activity is cattle raising

4. Scarcity of water resources 5. High levels of low-income rural population 6. Urban areas with low coverage of WSS services and

inadequate solid waste disposal Middle Sergipe

river – center/south

1. Medium levels of rainfall 2. More permanent rivers 3. Dependent on irrigated crops and

agricultural production

4. Problems with the operation and maintenance of infrastructure

5. Low levels of efficiency in the use of water resources 6. Medium-sized cities with insufficient WSS coverage,

including inadequate disposal of solid waste Lower Sergipe river – coast

1. Sub-humid climate 2. Higher levels of rainfall 3. Perennial medium sized rivers 4. Mangrove and other environmentally

sensitive areas 5. High concentration of urban population

and industrial, commercial and service activities

6. High population density 7. Growing domestic and industrial demand for water 8. Irregular occupation of mangroves and other

environmentally sensitive areas 9. Low levels of WSS service coverage in urban slums

and other areas concentrating low income populations10. Low levels of efficiency in the provision of WSS

services and the disposal of solid waste

11. The P roject a ims to address some of these identified is sues throug h the fol lowing

activities:

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(i) Institutional strength ening to confront the c omplex water resources management chall enges in the Sergipe river b asin, including ensuring the long-term sustainability of the Project’s interventions; (ii) Studies on the creation of new conservation are as to offer green sp aces and promote sustainable environmental management for land management practices in the Sergipe river basin; (iii) Optimization of the irrigated agriculture pot ential in the Sergipe riv er basin with the aim of promoting economic development in the State as well as the effic ient and sustainable use of water resources; (iv) Improvement in th e qu ality of wate r in the Sergipe riv er basin and its tributaries through better land use and practi ces at the micro-basin le vel as well as investments in th e construction of wastew ater c ollection, transport and tre atment systems; (v) Reduce the pressure on the supply of water in the Sergipe river basin, both for human and irrigation uses, and improve the supply of good quality water.

 

3. TYPOLOGY OF PROJECT INTERVENTIONS AND THEIR POTENTIAL IMPACTS

12. The following interven tions finan ced by t he P roject ar e th e most relevant g iven their

potential social and environmental impacts. 3.1 Creation of Conservation Areas

13. Component 1 will finan ce the preparation of stu dies for th e creation and designation of

new conservation areas within the Sergipe river basin. These studies will be developed in conjunction with activities related to social communication and community participation, sanitary and e nvironmental e ducation, a nd social a nd environmental pl anning a nd management.

14. Conservation areas are a territorial space, with environmental resources, such as territorial

waters, legally establish ed by the Go vernment w ith the o bjective of protec ting t hese resources. While the main aim of this activity is to create new conservation areas, it will also promote sound environmental management and sustainable land use practices in the Sergipe river basin.

15. Although no ph ysical involuntary resettlement is env isioned in th e process of creatin g

additional conservation areas, restrictions on further construction and economic activity based on the exploitation of natural resources may occur. To properly address this issue, a Resettlement Resettlement Process Framework (PF) forms part of the RPF and prov ides guidance on how to manage social and economic impacts deriving from the restriction of local people’s access to natural resources in conservation areas.

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3.2 Modernization of Water Infrastructure in the Sergipe River Basin

16. Two of the six major d ams constructed in the S ergipe river basin, both operate d by

COHIDRO, w ill b e tar geted by project-finan ced inv estments: (i) J acarecica I, built of stone and concrete, with a maximum h eight of 20 meters and fl ooded area of 155.4 hectares, whose purpose is to store water for irrigation needs around the I perimeter; (ii) Poção da Ribeira , lo cated in th e Vaza Barris river bas in, will als o be targeted by the Project given that part of its irrigated area is located within the Sergipe river basin. It is an earth fi ll dam , wi th a maximum height o f 26 m eters, a nd it is u sed fo r h uman water supply and irrigation needs. Jacarecica II, also an ear th fill dam, with a maximum height of 47.5 meters and a flooded area of 260 hectares, currently used for human water supply and irrigation needs will solely benefit from technical assistance.

17. Constructed in th e middle of the 1980s, the Poção d a Ribeira and Jacarecica I dams are

the oldest, and they did not undergo an environmental licensing process as this was only instituted in 1986 b y CONAMA’s Resolution 001, which st ates that in frastructure built prior to its enactment n eeds to ob tain co mpliance through an operation license . A s no measures have been taken to obtain the relevant environmental licenses or the granting of water rights, these dams are not in compliance with environmental regulations. The filling of the reser voirs required th e expr opriation of lands with in the floodp lain, and the 100 meter r ange of the perimeters was designated an APP. The Jacarecica II dam was built more rece ntly, with th e filli ng of the reservoir in 2001, b ut w hile A DEMA i ssued its installation license, it never obtained an operating license.

 

18. In addition, the APPs around the Poção da Ribeira and Jacarecica I reservoirs are partially occupied by pasture, temporary structures and a few homes and bars, which were already compensated for the expropriated la nd at the ti me th ese a reas were design ated A PPs. These occupants are primarily the property owners of the lots bordering the reservoirs.

 

19. In the case o f Jacarecica I reservoir, a diagnostic review was undertaken to identify those living in the area and their socio-economic characteristics. This review revealed that there are 10 non-co mmercial fishermen using t he island near the d am on the w eekends, 33 settlers who have extended their pasture and other crops into the APP, 5 workers’ houses and 3 s mall bars. In the case of Poção da Ribeira, the d iagnostic rev iew undertaken by COHIDRO revealed that there are 8 small houses used on the weekends and 9 small bars. The fate of these s tructures will d epend on th e Code of Conduct to b e signed b etween land occupants, COHIDRO and ADEMA.

20. Although the PROÁGUA Semi-Arid Program financed Dam Safety Panels for the Poção

da Ribei ra and Jacarecica II dams in 2001, none of the recommendations (i.e., per iodic inspections to avoid erosion and vegetative cover on the slopes; systematic maintenance, conservation a nd monitoring; operational manual; und ertake b athymetry stud y) were

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followed. Th ere i s no sy stematic water quality monitoring program in any of t he t hree dams, and COHIDRO has informed the project preparation team of problems related to the lack of bottom outlets required for proper operation.

21. Under Component 2, the Project will finance the rehabilitation of the Poção da Ribeira,

Jacarecica I a nd Jacare cica II da ms, wh ich include ba thymetry, operatio nal improvements, operational models for the reservoirs, and other related activities ensuring dam environmental compliance. The main outcome of these interventions is expected to be th e resolution of certai n env ironmental liabilities, including the r egularization of environmental licensing and water rights and the restriction of access and use of APPs, as well as the improvement of the dams’ operation to pro mote the efficient and sustainable use of water.

 

22. Given th e Project’s ph ysical interventions in the Poç ão da R ibeira and Ja carecica I irrigation perimeters, th e o ccupation in th e A PPs also needs to be ad dressed to ensur e environmental compliance. In thi s regard, specifical ly for Poção da Ribei ra and Jacarecica I , the S tate of S ergipe will adopt a Cod e of Conduct ( Termo de Ajuste de Conduta, TACs), which is a legal instrument negotiated through a participatory process with land o ccupants. The objec tive of t he ado ption of th e TA Cs is to ensure th at the current occupants retain user rights while agreeing to cons ervation measures. An initial round of discussions among COHIDRO, ADEMA and the land occupants in Jacarecica I indicated that the negotiation and implementation of the TACs is a feasible alternative to be pursued, and that the fi nal agreement with land occupants is likely to in clude restrictions on any future construction of physical structures and changes in the nature of the fi shing practices currently in place (i .e., changing fro m the current non-co mmercial nature to a co mmercial one). Further consul tations and di scussion wi th la nd occ upants will take place with regards to ongoing economic activities, and in the case that they have to be restricted or ceased, t he Stat e w ill im plement t he compensation provisions and methodology established in the PF.

23. With regards to the occu pation of A PPs in Ja carecica II, al ternative solutions to manage the technical and socio-economic aspects of this issue will be studied in the course of the technical assistance financed by the Project. Within the Jacarecica II irrigation perimeter, there are organized social movements, including two irregular settlements in the adjacent areas to the perimeter, en compassing th e Fazend a Tingui w ith 366 families and Mario Lago s ettlement w ith 96 fa milies, as w ell as the Tabua community, with 28 fam ilies, which is irregularly occupying a legal reserve area within the perimeter. Approximately three h ectares of the l ands currently being used by these communities belong to COHIDRO. These are ir rigated plots that r eceive water from the Jacarecica II dam, and COHIDRO officials are willing to allow the these communities to con tinue to us e these plots as part of an eventual overall settlement involving national agencies and private land owners. The project will only finance technical assistance activities intended to assess the viability of various social, environmental, technical and economic solutions related to this perimeter. The ter ms of reference for the technical as sistance to be pro vided w ill

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incorporate compliance with World Bank s afeguards pol icies a s applied t o the advice conveyed and conclusions reached through such technical assistance.

 

3.3 Modernization and Recovery of the Irrigated Perimeters 24. Under Co mponent 2, the P roject w ill fin ance physical in terventions to modernize and

rehabilitate the Poção d a Ribeira and Jacarecica I irrigation perimeters, while Jacarecica II will only be provided with tec hnical assistance to sup port future improvements in the irrigation p erimeter. The Poção da Rib eira perimeter was built in th e m id-1980s, w ith 1,970 hectares in total, of which 110 hectares are irrigated, with 466 water intake points, one for each farmer whose lots average 1.5 hectares. The Jacarecica I perimeter was built in 1987, with 398 hectares, of which 252 are irrigated, encompassing 124 farmers whose lots average 2 h ectares, inc luding a n agricultural co mmunity c enter, with hou sing infrastructure, office administration and an agricultural res earch are a. T he Ja carecica II perimeter was built in the last d ecade, with a total a rea of 1,998 hecta res, of which 820 are irrigated, with 351 families living within its boundaries.

25. The irrig ation peri meters, located less th an 100 k ilometers fro m the State cap ital o f

Aracaju, are occupied by small-scale rural farmers who make their living from irrigated agriculture and have a privileged position of guaranteed access to the markets of Itabaiana and th e cap ital. How ever, they have not reach ed daily p roduction volu mes th at would sustain their maintenance. EMDAGRO oversees the adequate use of pesticides, as well as their appropriate collection and th e disposa l of it s packag ing; ho wever, thei r current practices ar e not documented in a spe cific plan and inspection and c ompliance verification teams need to be strengthened.

 

26. The main challenges for t he proper management and control of the irr igated perimeters are: (i) the need for a per manent CO HIDRO wat er infrastructure opera tion and maintenance (i ncluding pumping stations, repression pipeli nes, passa ge b oxes and reservoirs) t o e nsure p roper operat ion of th e sy stem; (i i) the re moval of o bsolete equipment that has been in operation for more than 20 years, including high-cost pumping and aspersion irrigation system; (iii) the inefficient use of water; and (iv) the reduction in the use of pesticides, supervised by EMDAGRO. In addition, reintroducing water tariffs for the local far mers represents anot her ch allenge as th is is ke y to incent ivize the sustainable use of w ater within th e p erimeter. Implementing charges for water consumption will be facili tated by the reh abilitation of t he irriga tion peri meters, th eir improved operation and the increase in productivity

27. The irrigation projects were developed in t he 80’s, before environmental permitting and water rights requirements became mandatory in Brazil. That is a common situation in the country, requesting an “ex-post” perm itting, also known a s “corrective permitting”. The Project w ill support th e irrigation peri meters c orrective permitting and wate r r ights

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application, a pre-req uisite for new public i nvestments. It wil l also carry on a socioeconomic evaluation to assess the capacity of the farmers to pay for water tariffs as well as the i mpact th e env ironmental corrective measures on their produ ction and livelihoods. After permitting, producers will not be allowed to occupy and plant on legal reserves and permanent preservation areas.

28. With regard to the p erimeters rehabilitation, t he Project wi ll fina nce th e modernization and recovery of the Poção da Ribeira and Jacarecica I irrigation perimeters, including: (i) preparation of detailed feasibility and environmental studies; (ii) technical modeling; (iii) construction of modernized irrigation; and (iv) irrigation su pport to small-scale farmers, including development of a Pest Management Plan covering integrated pest management, technical a ssistance and cap acity-building to comply with the B ank saf eguard on Pes t Management (OP4.09). The objective of these actions is to evaluate the magnitude of the environmental pro blems associated w ith the operation of the i rrigated perimeters. Potential environmental i mprovements in the peri meters f ocus on th e resolution of environmental liabilities, including the s ettlement of issues related to environ mental licensing and wate r rights, e stablishment of new m echanisms fo r environmental management, with control over the access and use of the legal reserves and the APPs, as well as red uction in p esticide us e. In th e c ase of Ja carecica II, the proj ect will sole ly finance technical assistance to support the state in looking at alternative options for future environmental adaptation and irrigation efficiency.

 

29. Moreover, the Project may also d evelop a p ayment for environ mental services schem e through which far mers are compensated for th e adoption of i mproved land use, water management and environmental conservation practices.

 

3.4 Land and Water Management and Recovery of Degraded Areas in Micro-Basins

30. Under Component 2, specific studies prepared for the Jacarecica sub-basin to identify the

main land and water uses made it possible to correlate these uses with their direct effects on degr aded areas and neg ative i mpacts on the local flora, soi l and water reso urces. Among the activities that can be tied to the degradation of the sub-basi n are agriculture, which is practiced intensively in much of the drainage area, and fishing. The most visible consequences include th e rem oval of ve getation a nd crops, erosi on and soil and water quality deterioration due to pesticide use.

31. Agriculture consumes large volu mes of water through i rrigation, wells and small dams.

Operational problems in the pumping system lead to intermittent irrigation water supply, forcing farmers to look for alternatives by building small wells on th eir properties. The lack of available water or poor wate r quality can cause conflicts among different w ater users such as irriga ted a griculture, hu man co nsumption and oth er activities such as

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livestock and fishing. Among other causes of environmental degradation in rural areas of the sub -basin a re th e in adequate disposa l of ga rbage, th e re moval of surface and sub-surface soil and the mining of clay.

32. The main issues relat ed to enviro nmental d egradation in the Jacareci ca s ub-basin, especially its soil and water resources, include: (i) esca lation of erosion processes, especially on river banks, which increases the risk of landslides; (ii) sediments increase in water bodies, leading to turbidity and increased pollution as soil particles absorb fertilizer and pesticide residues; ( iii) reduction of rainwater infil tration, which reduces the supply of groundwater and the inflow to springs and depletes aquifers; and (iv) lack of vegetative cover on r iver margins. Among the foreseen consequences of these pro cesses absent the project int erventions ar e the lower availability of water resources for multiple uses, the reduced potential for agricultural activities and the intensification of conflicts over the use of water.

33. The P roject w ill support in terventions rela ted to the i ntegrated management o f the

Jacarecica sub-basin, w ith em phasis on la nd and water m anagement a nd conservation practices, including:

a) identification and designation of APPs and adoption of re-vegetation practices; b) implementation of erosion control practices in agricultural and fishing areas; c) implementation of non-mechanized practices to control erosion, including tillage

control, contour plann ing, crop rotation, cover crops, green manure, or ganic fertilizer, mulch cover and weeding control;

d) implementation of mechanized practices to co ntrol erosio n and enhance w ater storage, i ncluding constructi on of sm all d ams and w ater accumulation and so il retention basins, correction of river banks and construction of terraces; and

e) implementation of practices to con trol nu trients, pe sticides and organ ic residu es and wastes, in addition to other interventions.  

34. EMDAGRO will be respon sible for i mplementing these activities whose main impact is

to contribute to the sustainable development of these rural areas through the deployment of t echnologies th at align agricultural production with environmental conserv ation, th e reduction of the causes of erosion in agricultural soils and the recovery of degraded areas. The Project w ill also support t he development of a be st practices manual for rural producers and EMDAGRO, which will be pa rtially based on previously succe ssful experiences, such as the Water Resources Management Company of C eará (Companhia de Gestão dos Recursos Hídricos do Ceará, COGERH /CE). Alt hough no commercial forestry is i nvolved, interventions will be con sistent w ith best-practices and compliant with the fore sts and n atural habitats poli cies. O nly native sp ecies will be used in reforestation and restoration activities.

35. Although 23 potential targeted micro-basins have been identified, the precise locations for

the implementation of th ese activities are st ill under study. The priori tization criteria for

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selecting areas of intervention are: (i) the convergence of these actions with other project activities; (ii) the degr ee of environmental degradation; (iii) the po tential for replication; and (iv) the location of the reservoirs (upstream from the dams).

 

3.5 Expansion and Improvement in the Water Supply Network

36. Financed u nder Co mponent 3, th e Dendeze iro w ater supp ly sy stem aims to provid e

potable water to the rural co mmunities of Dendezei ro, Taboca, Lagoa do Fo rno, Forno, Gandu II, São José, Mangabeira, Mundo Novo a nd Gandu I, locat ed in the municipality of Itabaiana. With a current populat ion of 4,016 people, these communities are expected to grow to approximately 7,492 people in 2 036. The water supply system is made up of: (i) a br anch fro m th e Ca jaíba treated wa ter pipeline, part of t he Ag reste i ntegrated pipeline sy stem; ( ii) a treated water pu mping station; (iii) a re servoir of 500 m 3 in Dendezeiro; and (iv) a distribution network for the rural communities.

37. The use of the existing Agreste water main is the best available solution in terms of costs

and water availability by optimizing the use of an existing infrastructure and minimizing environmental impacts. Investments for water supply systems will be r eviewed through specific EA/EMP or other measures as required b y t he fra mework dev eloped for the project.

 

3.6 Construction of Wastewater Systems

Counterpart Financed Works

 

38. The ongo ing e xpansion of the wastew ater systems in th e Grande Araca ju r egion w ill complement project financed activities under Component 3, but will be fully financed by counterpart funds through t he PA C. These interventions aim to build w astewater collection, transport and treatment systems in the municipalities of Aracaju and Barra dos Coqueiros. While the works in Aracaju involve the expansion of the ex isting system, the works in Ba rra do s Co queiros will build a n ew sy stem to serve this municipality. A ll counterpart finan ced investments u nder the Programa de Aceleração do Crescimento (PAC) are requir ed to d esign and implement an associated Projeto de Trabalho Técnico Social. This means th at these works are designed an d i mplemented in a highly consultative and participatory manner.

39. The works in Aracaj u w ill expand the co llection network in th e S ão Conrado and

Farolândia neighborhoo ds, as well as ten oth er sub -basins, a nd expan d two pumping stations and two existing wastewater treatment plants in the south and west of the city. A recent analysis o f these treat ment plants points to unsatisfactory p erformance, with removal rates of Bio logically Dissolved Oxygen (BOD) of le ss than 60 percent, m ostly due to inadequate operation and maintenance of the anaerobic digester.

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40. The in terventions ar e e xpected to completely mo dify the existing w astewater treatment plants, with activ ated sludge co mposed of grit and sand rem oval, anaerobic up-flow digesters ( Digestor Anaeróbico de Fluxo Ascendente, DA FA), aeration tank, s econdary sedimentation tank and ultra violet disinfection selected as the adopted technical solution in th e sou thern plant . T his technolo gy i s expected to r educe BO D level s by 90 to 95 percent, thus making the treated wastewater suitable for final disposal. The modification and expansion of the western treatm ent plant will adopt the same technology, except for the installation of a sec ondary sedimentation tank. Bot h treatment plants w ill h ave thickening and sludg e ce ntrifuges for forwarding t o f inal destination. Ultraviolet disinfection will remove fecal coliforms, thus allowing the disposal of the treated effluent into estuaries w ith mangroves, such as th e Poxim and Sergipe ri vers. The current locations of both tr eatment p lants are s ufficiently large to in clude f uture expansions without the need for land acquisition. They are also situated in low-density areas, with no interferences in cons ervation areas and no need for involun tary resettlement. The Barra dos Coq ueiros sanitatio n sy stem will serve th e whole city (aroun d 18,500 inhabitants). The sy stem includ es the wastewater collection system, interceptors, m ains and the wastewater treatment pl ant. Th e pl ant loc ation was appro ved and l icensed by the State Environmental Agency, taking into account odor generation and the outfall location. The plant is located in the south of the city, close to an low density urban area recently being expanded. Final disposal will be at the Sergipe River, close to a shipyard. The plant and outfall do not interfere with natural habitats, including mangroves. The o utfall main will be constructed along a county road, connecting the plant to the river bank.

41. Barra dos Coquei ros wastewater t reatment plant includes activated sludge, composed of

grit and san d r emoval, DAFA, ae ration ta nk, secondary sedimentation a nd ultra violet disinfection, recommended by the E A. The plant has internal areas for te mporary sludge retention, and its permit determines that the sludge must be used as organi c fertilizer for grass and fruits, according to CON AMA’s Resolution 375/2006. The sludge can also be disposed at certi fied landfills, or used for degraded areas rehab ilitation, accord ing to CONAMA regulations.

42. With regards to the w astewater treatment plants sludge fin al disposal (addressed in item 6.3.4.5 of t he EA repo rt), the Sta te Environ mental A gency required a complementary study to evaluate four possible disposal alternatives: 1) temporary storage inside the plant areas; 2) d isposal at certified landfills; 3) use as fertilizer in reclamation projects; and 4) use as fertilizer for a griculture, ac cording to the CONAMA 375/2006. The sludge disposal alternatives stud y concl usions and recommendations will be sub mitted to the Bank, prior to final approval.

43. The selected technological solution requires less energy than other alternatives, except for

the secondary sedimentation ta nk. It is al so m ore co mpact compared to the u se of

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stabilization ponds, thus making it more suitable for consolidated urban areas giv en the unavailability of large tracts of land that are usually expensive to purchase. On the other hand, this solution requ ires skilled labor to operate and has high equip ment maintenance costs.

Bank financed works

 

44. The Proje ct will direc tly finance in vestments i n wast ewater treat ment systems in a fe w small and medium-size ci ties in t he Sergipe river basin. The se inc lude the foll owing proposed in terventions, which ar e s till at th e conceptual l evel: (i) construction of wastewater collection s ystems (do miciliary extensions, n etworks and co llectors); (ii) construction of wastewater transport systems (i nterceptors, pumping stat ions and pressurized outfalls); and (iii) construction of w astewater treatment plants. The size and location of the i nterventions c ould gen erate n egative env ironmental impacts involving impacts on natural h abitats and physical cultural r esources and interferences with commercial and resid ential activities. Th ese ca n s ignificantly be minimized with appropriate project design criteria.

45. The main negative impacts are expected to occur during the construction phase, primarily with the bu ilding and expansion o f wastewat er treatm ent plants, a s the cons truction process entails certain inherent inconveniences with localized, reversible, temporary and relatively insignificant impacts. These impacts include the generation of odors, which will be minimized by the adopted technologies and informed by studies on wind direction as well as appropriate constructi on and waste d isposal. The EMP defined appropria te measures to reduce and mitigate these potential impacts. Investments in wastewater will be ob ject o f specific engineering studies, environmental as sessments and per mitting, which will evaluate technology and location alternatives and measures to reduce potential negative i mpacts and improve th e sy stems efficien cy. The most significant impacts ar e positive, including the improvement of sanitary conditions, the population’s quality of life and the quality of water being discharged into water bodies, with direct positive impacts on the enhancem ent of environ mental and urban conditions in the b eneficiary cit ies. In addition, monitoring and ev aluation measures w ill accompany thes e investments t o quantitatively demonstrate positive outcomes.

 

46. It should b e no ted th at th ese interventions a re p art of a serie s of acti ons t o be implemented in the medium to long-term, thus complying with Brazilian legislation. The following criteria will be us ed t o sel ect the cities to benefit fro m the building of wastewater sy stems: (i) water re sources pro tection: cities tha t discharge untreated wastewater in the basin’s existing water supply reservoirs threaten ed by eutrophication; (ii) health protection: cities in wh ich residents may face ris k of dire ct contact with open

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air untreated wastewat er discharg ed; (iii) e nvironmental pro tection: scale of discharged pollution; (iv) economic viability: defined by a cost benefit analysis.

 

3.7 Construction of Urban Drainage System  

47. Some cities in the Sergipe River basin suffer from the absence of adequate urban drainage and storm management systems. Urban drainage is a key element of the integrated urban water management approach and i t is closely link ed to wastewater and s olid waste systems. The Project will select a priority city to benefit from an adequate urban drainage system, which will be developed on the basis of minimizing canalization and opti mizing upstream r etention, pref erably in pu blic areas, thus m inimizing env ironmental im pacts while op timizing environmental benefits. Itabaiana, the third most populated city in the State which has been affected by recurrent floods, may be th e one selected.  Investments for urban drainage systems will be reviewed through specific EA/EMP or other measures as required by the framework developed for the project.

4. ENVIRONMENTAL ASSESSMENT 4.1 World Bank Safeguard Policies 48. The Sergip e Wa ter Project triggers the fo llowing World Bank Safeguar d Policies: OP

4.01 Environmental Assessment; OP 4.04 Natural Habitats; OP 4.09 Pest Management; OP 4.11 Physical Cu ltural Resou rces; OP 4. 12 Involunta ry Resettlement; OP 4.36 Forests; and OP 4.37 Safety of Dams.

49. Component 1 will su pport the strengthening of water r esources an d environmental management in the State of Sergipe through ac tivities desi gned to pro mote p olicy coordination and capacity building for managers and technicians in environ mental management practices. Coordination among related agencies will be necessary to take on the challenge of planning and managing water resources and controlling water pollution, protecting the environment as well as promoting efficient provision of WSS and sewerage services in small cities and rural areas in the Sergipe river basin. All activities under this component are d esigned to make positive and permanent improvements in th e environmental conditions in the Sergipe riv er basin, with virtually no direct negative environmental impacts.

50. Sergipe h as insufficie nt w ater res ources management sy stem, and underdeveloped environmental baseline information. Component 1 will include, therefore, complementary baseline data studies to support the Sergipe River watershed integrated management plan. The studies will co mprise an upd ated waters hed analysis, with d etailed hy drologic an d hydrogeological characterization, water balance and water quality s tudies, a mong o ther

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topics. The Sergipe Basin was also object of the Bank financed Integrated Federal Water Project (P ROÁGUA), which is financi ng the st ate water resources plan and t he master plan f or th e S ergipe River Basin. Thes e studies w ill b e used as the b asis for th e complementary baseline and other studies to be financed under the project.

 

51. The fi nancing of studies for the creation of ne w conservation areas w ill hav e consequences on nat ural hab itats and forest. Although no physical involuntary resettlement w ill b e ne cessary for creating these conservation a reas, in the process of creating additional conservation areas restr ictions on further construction and economic activity may occur. As such, a Resettlement Process Framework has been prepared as part of the RPF to provide guidance on how to manage the social and economic impacts of restriction of access to conservation areas. Moreover, as a way to enhance and sustain the positive co ntributions, the Projec t will als o support activities i nvolving social communication, community participati on, en vironmental e ducation and so cial an d environmental management.

52. Component 2 comprises a wid e range of actions in water infrastructure, irrig ation

perimeters and micro-basins to promote improved environmental conditions and enhance the s ustainability o f t he S ergipe river b asin. The Project will finance physical interventions in th e Poç ão da Ribeira and Ja carecica I irrigat ed p erimeters and w ill provide technical assistance to support future improvements in the Jacarecica II irrigation perimeter. Other activities under this component include the promotion of proper land and water management i n t argeted micro-basins of the Jacarecica sub-basin. The main concern is the lack of instruments and t rained personnel to improve the management in the use of soil and pesticides as w ell as th e existing water in frastructure in the irrigation perimeters. Additionally, the Stat e of Sergip e has carried out a public consultati on to discuss the continued use of these protection areas through a TAC which will define how these areas can continue to be used. The Project will not undertake rehabilitation works of the Jacarecica II irrigation perimeter, activities for this area include feasibility studies for future interventions and social mobilization. The terms of reference for this act ivity shall incorporate the requ irements of th e Bank s afeguards policie s as applied to t he advice conveyed and conclusions reached through such studies.

 

53. The Project will also finance the rehabilitation of the Poção da Ribeira, Jacarecica I and Jacarecica II dams, wh ich in clude bathy metry, ope rational improvements, operational models for the reservoirs, and other actions related to ens uring th e env ironmental compliance of these dams. Moreover, the Project will also suppo rt studies and actions to settle the environmental licensing and wate r r ights proced ures for the da ms and their irrigated perimeters, in accordance with environmental laws and in compliance with the conditions fo r land use in AP Ps and legal reserves. Interventions aimed bringing thes e protected areas into environmental co mpliance may trigger the invo luntary resettlement

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safeguard policy and will follow th e provisions of the Res ettlement Process Framework prepared for the Project.

 

54. Component 3 w ill redu ce po llution levels in the Sergipe river b asin and improve the quality o f l ife for th e local popu lation b y expanding WS S se rvices, b uilding of u rban drainage in t argeted municipalities a nd i mproving the operational e fficiency an d corporate g overnance of D ESO. None of th e envisaged civil w orks a re expected to require land acquisition or resettlement of people, but the B orrower has prepared a RP F that clarifies the resettlement principles, organizational arrangements and guidelines to be applied to subprojects prepared during project implementation. Although the expansion of this type of infrastructure will br ing posi tive env ironmental impacts for t he local population, some temporary and minor negative impacts may arise during c onstruction. However, the adop tion of social and environmental criteria during the prep aration of the engineering designs and the planning of the works will significantly reduce the problems related to these impacts. The EMP defined appropriate measures to reduce and mitigate potential negativ e i mpacts and improve the systems efficiency a t bo th construction and operation p hases. As a precaution, the activities ass ociated with ex cavation works and construction of WSS s ystems will trigg er th e safeguard policy on p hysical cu ltural resources. An Environmental Construction Manual (ECM) has been prepared as part o f the Env ironmental M anagement Plan of th e Project and it in cludes “chan ce find’”’ procedures, as well as the Bank standards for Environmental Health, and Safety for Water and Sanitation projects. .

55. The san itation su b-projects to be funded by the Bank under Co mponent 3 are still at a conceptual engineering stag e, as s uch, the impact ass essment for these wo rks will b e complemented during t he p ermitting phas e. Th ese san itation sy stems are classified as small or mid size (CONAMA’s Resolu tion 377/2006), and undergo a si mplified permitting p rocess, whose goal is to speci fying focused an d simplified EAs, consi stent with th e pr ojects scale and impacts. N evertheless, all of Component 3 sub-pr ojects’ engineering speci fications and environmental studies will b e r eviewed by the Ban k, t o ensure compliance with the Bank Safeguards requirements. Besides specific requirements for the different sub-projects these EAs must be comprehensive, covering all key aspects, such a s baselin e data assessment, locati on and technology al ternative an alysis, project impact assessment, mitigation p lan, environ mental management plan and monitoring programs.

 

56. With regards to interventions financed with counterpart financing, the Barra dos Coqueiros Sewage System has a valid construction environmental permit, the Aracaju wastewater collection and transport system expansion received a permitting exception from the Environmental Agency, and both Aracaju existing wastewater treatment plants, ERQs South and ERQs West, have valid operating permits. DESO applied for the Aracaju South and West wastewater treatment plants improvement and expansion, but,

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the respective installation permits are not yet issued. Safeguard compliance of counterpart interventions is described in detail in item 6.3.4 of the EA’s main text. Well defined environmental management plans seem to be the most important instrument at this phase to guarantee conformity with the Safeguard requirements. The Project EA has a well prepared Construction Environmental Manual that could be adopted by the Sergipe State for the counterpart interventions, to solve this possible gap.

57. The counterpart interventions are at either at construction stage, as the Aracaju City collection system and Barra dos Coqueiros sanitation system, or to initiate construction, such as the Aracaju wastewater plants expansion. The Aracaju wastewater treatment plants have valid operation permits, and the Environmental Agency (ADEMA) required specific licensing for the plants expansion and improvement, which are under assessment and processing. Barra dos Coqueiros Sanitation System has a valid environmental construction license issued by the State Environmental Agency - ADEMA. Licensing followed a simplified procedure, in accordance to Brazilian legislation. The system nominal capacity is 18.500 inhabitants (2015 population projections), and is classified as a “Small System” by CONAMA Resolution 377/2006. The sub-project received funding from the Brazilian Government PAC Program, and followed its environmental and social guidelines, including a comprehensive social support program along with the construction phase. Licensing and implementation has been supported by a public consultation process and by an engineering study, addressing the evaluation of effluent disposal and treatment plant location alternatives, possible interference with existing facilities and economic activities, the river effluent’s dilution capacity. The Barra dos Coqueiros treatment plant design included a methane capture system in the DAFA to mitigate odor generation. Additionally, the Sergipe Water Project EA pointed the need of additional odor mitigation measures, such as wind barriers, which has been accepted by DESO. The EA concluded that the Barra dos Coqueiros Sanitation System followed appropriate environmental practices and is expected to produce positive environmental impacts on the intervention area.

58. The potential environmental and so cial implications of t he proposed waste management

plans are di scussed in t he EA on a c onceptual basis (ite m 6). The projec t will sup port technical studies for deve loping a r egional management model for waste management. The preparation of th ese stud ies will in corporate environmental and social management practices approved by the Bank for the proposed Integrated Solid Waste Management and Carbon Finance Project , t o be financed b y the bank to th e Caixa Econômica Feder al - CAIXA.

59. Two public consu ltations w ere held in acc ordance with the pub lic d issemination and consultation policy of the World Bank. Th e first consultation held on August 20, 2009 included the participation of the Sergipe river basin committee and representatives from the World Bank, with the purpose to prese nt and discuss the con tent of the Term s o f Reference for undertaking t he envir onmental assessment, o bservations and sugg estions

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made during th e discu ssion were incorporated in the term s of refer ence. The second consultation on Nove mber 25, 2009 was announced on t he SEMA RH’s website , and SEMARH invited all of the institutions th at f orm p art of the S ergipe riv er basin committee. A draft version of the report was made publicly available to stakeholders in advance of the meeting. The cons ultation included the par ticipation of repres entatives from 27 d ifferent ins titutions, a nd it pres ented the i nitial results of th e environmental assessment of the Project as well as the main points of th e proposed EMP. There was a general consensus among those present on the adequacy of the environmental assessment and t he p lans set out in the EMP . In a ddition, specific public consul tations ev ents and social wo rks had being carried prior and d uring the implementation of the coun terpart financed wastewater investments in Barra dos Coqueiros and Aracaju.

 

4.2 Overall Assessment of Environmental and Social Impacts of the Sergipe Water Project

Social Review 60. As Brazil’s second smallest state, with an area of approximately 22 ,250 km2 and a

population of alm ost 2 million, Sergipe is a coastal s tate partially lo cated in th e dry northeast region of Brazil, an area of rela tive poverty , hig h inequ ality and great w ater scarcity. Al though Ser gipe has tr aditionally been a rural state, with an econ omy dependent on governmental activities (24.5 percent of the State’s GDP), urbanization has escalated over the last few decades as the percentage of people living in urban centers has risen from 67.2 percent in 1991 to 83.3 percent today. This was a result both of economic migration to the cities in search of e mployment i n the grow ing indust rial a nd service sectors and above average population growth, which at 2.69 percent in urban Sergipe an d 2.01 pe rcent in Sergip e as a w hole ou tpaces Bra zil’s a t 1.63 perc ent. Th e State o f Sergipe’s Human Development Index, which measures variables such as life expectancy, literacy, educational attainment and GDP per capi ta, is 0.687, slightly above th e average for the northeast (0.672), but below the average for Brazil as a whole (0.769 ). Though a small state in a relatively impoverished reg ion of Bra zil, Sergipe has the h ighest per capita i ncome of R$7, 560 of th e Northeast region, but this re presents only a bout 60 percent of the average national per capita income, and some 52 percent of the population earns less than two minimum salaries (R$465) a month, indicating a high level of poverty.

 

61. A soc ial review w as u ndertaken as part of the environmental assessment, in which th e socio-economic characteristics of the municipalities within the Sergipe river Basin as well as the social indicators of nineteen municipalities that have municipal capitals within the basin were reviewed. Over 50 percent of households within the state live in the basin, and of this amount 86.8 percent live in u rban settings. This review showed that high levels of poverty and social vulnerability exis t, as the pov erty inci dence ind ex in thes e municipalities varies between 27.5 and 64 per cent, with an average of 53.6 percent. The 2000 average income per capita in these municipalities did not go beyond 0.7 minimum

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salaries, an d 12 pe rcent of t he populati on did not have a regula r monthly i ncome. In addition, th e average infant mortality index (c hildren up to 5 years old) in these municipalities is about 81. 98 per thousand, considered high i f co mpared t o th e state average of 72.66 and the national average of 39.32. The cities within the basin present significant deficiencies in t erms of ac cess to WSS servic es as w ell as dis posal o f and treatment of solid waste with negative consequences on the health of the local population, on the quality of the w ater bodies and on the supply of potable water in the b asin. Given the general social inequalities, these deficits are most pronounced among the poorest parts of the population.

62. The Pro ject will hav e a posit ive impact o n t he q uality of li fe and th e socio-eco nomic

indicators of the population living in the targeted municipalities in the Sergipe river basin. The population currently underserved or completely without access to WSS services will be one of the biggest beneficiaries of the Project through the provision of potable water at a reasonable price. P roject interventions will also help to ensure the availability of clean water in the basin, w hich should attract further investments and businesses in the areas, and thus improve the competitiveness of these municipalities.

63. The EA found a nu mber of pote ntial env ironmental and so cial i mpacts (pos itive and

negative) mainly related to th e reso lution of significant en vironmental li abilities in the Sergipe r iver b asin as sociated wi th the i mprovement of water qu ality and w ater infrastructure a nd the prom otion o f e fficient and sustainable u ses of water as w ell as enhanced envi ronmental management through in stitutional s trengthening and i mproved management tools. It i s i mportant to reinforce th at the Sergipe Wat er Project will significantly contribute to improving environmental conditions in the Sergipe river basin.

Positive Environmental and Social Impacts 64. Recovery of important environmental liabilities. Investments in water infrastructure and

irrigated perimeters, which were built in the Sergipe river basin more than 20 y ears ago and were n ever acc ompanied by permanent and proper t echnical, operational and environmental management, have c reated im portant e nvironmental lia bilities t hat have contributed t o the degradation of the envir onment in the basin. The settlement of environmental licenses and water rights as well as the modernization and rehabilitation of existing water i nfrastructure, togeth er with the control of access and u se of APPs, will effectively contribute to the promotion of efficient and sustainable uses of water.

65. Improvement in water quality. Inadequate sanitation infrastructure means that wastewater

is regularly discharged directly into the Sergipe river basin without any kind of treatment. This has led to enviro nmental deg radation and has c ompounded t he pro blem of w ater scarcity in the Stat e. T he rem oval of the se sources of p ollution through th e proper collection and transport of household wastewater to adequately operated treatment plants are crucial elements of a strategy to improve the overall water quality of th e river basin. The end results will be the i mprovement in the quality of life for the population residing

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within the basin, the environmental recovery of the bas in and the sustainable, increased use of water resources.

66. Improvement in infrastructure. Extending household connections to the potable water and

sanitation systems as well as constructing wastewater treatment plants to serve these areas will r esult n ot only in im proved w ater quality i n t he r iver basin bu t also in improved coverage levels for WSS services, especially in the d ensely populated poor communities. Moreover, greater access t o WS S services will contribute to i mproved h ealth, environmental and urban development indicators in the State.

67. Biodiversity. The Project is expected to enhance aquatic and riparian biodiversity within

and around t he Sergip e and n eighboring river basins. The Project’s emphasis on improving the quality of rivers and environmentally sensitive areas alongside streams will promote the restoration of habitat for we tland and non-wetland species and promote the maintenance of existing aquatic and riparian habitats. Sergipe has only few state protected areas amounting on ly 213,87 hectares, The stud ies on th e creation of n ew conservation units in th e basin w ill recognize current and future scen arios th at w ill corroborate th e magnitude of the pos itive impacts g enerated, and may res ult in a increase of state protected areas..

 

68. Consolidation of sustainable development and Water Resources Management (WRM) strategies. As previously mentioned, the challenge of revitalizing the Sergipe River basin will be confronted through a b alanced approach, consisting of integrated inv estments in water infrastructur e, irrigated agricul ture and enviro nmental WS S services, combined with th e strengthening of t he instit utional and political fra mework a nd i mproving integrated water r esources and environmental management in th e state of Sergipe. T he reduction of wate r po llution wil l h elp t o re verse the current situ ation of environ mental non-compliance with rul es and g uidelines established by environ mental and w ater resources policies at the national, state and regional level. At the same time, the Project is not solely based on infrastructure interventions but also on institutional strengthening for the s tate a gencies most rel evant to WR M. Te chnical assistance provided to these institutions will i mprove th eir capacity for wat er plannin g, management a nd s ervice regulation. O ne of the objectiv es of t he in stitutional d evelopment component is the establishment of a comprehensive policy for WRM in the State . This policy will lay the foundation for the sustaina ble use of water resources as w ell as integrate environ mental protection, provision of basic infrastructure services and other key issues related to water availability and quality.

 

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Negative Environmental and Social Impacts

69. It is envisioned that the interventions will contribute to the environmental recovery of the Sergipe river basin and an i mprovement in the quality of life of the local population. All of the interventions are designed to reduce pre-ex isting so cio-economic a nd environmental conditi ons and avoid ex acerbating pro blems i n t hese sensiti ve environments. Regionally, no significant negative environmental impacts were iden tified during preparation. The main negative impacts were found at the local level, principally related to th e construction periods of the civil works, and th ese effects can b e mitigated with a set of c riteria and a dequate procedures for the design and con struction of the works. Th e EMP will adopt sta ndards for t he d esign and environ mental asse ssment of activities and these will be incorporated in the ECM. Operation of water and wastewater systems can ha ve impacts re garding odor and emergencies including fl oods, p ower outages and other natural disasters. Inadequately managed systems also are risky from an environmental and social standpo int therefore justifying the inves tments in institutional strengthening that are going to be financed under the proposed project.

70. Involuntary resettlement. While none of the propose d physical interven tions should

require involuntary resettlement of families, this will be con firmed once all requirements for new land to be purchased have been analyzed. As such, An RPF was prepared as part of the environmental and social assessment to guide any resettlement process that could arise during pro ject implementation. Addressing th e issue of occup ation of APPs may result in restrictions to further construction and economic activity, as such a Resettlement Process Fram ework was prepared as part of the RP F t o provide guidan ce on h ow to manage social and economic impacts of restriction of access to conservation areas.

 

71. Several physical houses and bars, as well as crop and pasture areas occupy in the APPs of the Poção da Ribeira and Jacarecica I reservoirs. COHIDRO, the state utility responsible for the irrigat ion perimeters, and AD EMA, the st ate environmental agency, pla n t o address this issue by adopting TACs, which are leg al instruments nego tiated through a participatory process with land occupants. The objective with the adoption of TACs is to ensure that current occupants retain user rights, while agreeing to conservation measures. An initial round of dis cussions among COHIDRO, AD EMA and t he land occup ants in Jacarecica I i ndicated th at the negotiation a nd implementation of TACs is a feas ible alternative to be pursued a nd t hat t he final agreement with land o ccupants is li kely to include restrictions on an y future construction and c hanges in the nature of th e fishing practices cu rrently in pla ce (i.e., changing from the current non-commercial nature to a commercial one). Further c onsultations and d iscussion with la nd occupants will tak e place with regards to th e on-going economic activities, and if these have to b e restricted or ceased, the State w ill i mplement th e compensation p rovisions and methodology established in the PF.

 

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5 ARRANGEMENTS FOR THE SOCIAL AND ENVIRONMENTAL MANAGEMENT OF THE PROJECT

72. In compliance with the social and environ mental safeguard policies of the Bank, the EA outlines a series of mitigating measures for the defined and potential negative impacts of the P roject’s interv entions. Thes e measures, as well as th eir estimated costs, implementation schedules and matrix of institutional responsibilities are t he essence of the EMP whose main approach is summarized below:

a. The EA considered during the current phase of project preparation and the application

of c onceptual fram eworks, defining cri teria an d procedures to be ado pted in t he preparation of subprojects:

b. Environmental Assessment and screening project impacts on Natural Habitats for all types of interventions; and

c. Dam Sa fety, In voluntary R esettlement, Pe st Management a nd Ph ysical C ultural Resources for specific interventions.

d. Procedures related to t he fol lowing iss ues w ill b e considered du ring the detailed planning phase for physical interventions:

1. Social and environ mental criteria for t he design of subprojects, Includ ing site specific measures for environmental and social impact mitigation as well as public and worker health and safety;

2. Environmental licensing of subprojects;

3. Dissemination and consultation procedures for interested parties; and

4. Reevaluation of environ mental assessment studi es for all su bprojects w ith potential environmental impacts as part of th e prepar ation of specific plans to meet the environmental guidelines defined by the triggered safeguard policies.

73. For Component 3, all guidelines and pro cedures outlined in t he ECM, including procedures for the environmental supervision of w orks will b e adopted during th e construction and operation phase. For Component 2, all guidelines and procedures related to pest management will be adopted in the operation of the irrigated perimeters benefiting from project inv estments. O ther conceptual frameworks will be adopted when they are relevant to the implementation of the subproject.

 

74. Interventions for the modernization and rec overy o f wa ter infrastructure and irrigated perimeters as part of Component 2 must follow a specific set of measures included in the environmental assessment, as well as in the ECM.

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Modernization of Water Infrastructure 75. The measures outlined as part of t he EA include actions related t o dams, the 100 m eter

protected buffer around the reservoirs and the development of the following inst ruments: (i) Dam Safety Panel for the three dams along the lines of OP 4.37, including the adoption of the panel’s reco mmendations; (ii) TAC negotiated thr ough a pa rticipatory process between land occupants, ADEMA and CO HIDRO, including the suggested invo lvement of the State Public Attorney’s Office, to def ine th e use re strictions in the AP Ps and measures for sup ervision and con trol; (iii) Res ettlement Process Fra mework, with the participatory development of a plan for land use management in the reservoirs, including control over ac cess and uses of th e are a, the demarcation of APP s a nd the ev entual recovery of degraded areas a nd t he re-veg etation of the 100 meter buffer surroun ding these areas; (iv) RPF, in case any involuntary resettlement will b e req uired for a few small commercial buildings (bars) and other facilities, if required by the Code of Conduct to b e signed between land occup ants, CO HIDRO a nd ADEMA; (v) consultations w ith interested p arties; (vi) studi es and processes to obtain Oper ation L icenses for the dams and Wa ter Rights; (vii) Op erational Manual for the Dams; (vii i) pla n to monitor the quality of water in th e r eservoirs; and (ix) social co mmunication plan and s anitary and environmental education.

Modernization and Recovery of the Irrigated Perimeters 76. The measures adopted as part of the EA include actions related to the irrigated perimeters,

and include the preparation and imple mentation of t he follow ing instruments: (i) TAC, negotiated through a participatory process with land occupants, ADEMA and COHIDRO, including the suggested involvement of th e State Public Atto rney’s Office, to define the use restrictions in the APPs and measures for s upervision and control; (ii) Resettlement Process Framework, with the development of a plan to establish the use and recovery of legal res erves and APPs; (i ii) co nsultations with interested p arties; (iv) studies and processes to obtai n Operation Lice nses for t he d ams and Water Rights; (v) pest management measures; a nd (vi) social communication as we ll as s anitary and environmental education.

 

Natural Habitats  

77. Interventions under Components 2 and 3 will affect APPs, which are protected areas under the Brazilian F orest Cod e, Federal Law 4.771/65. In addition, th ere are other conservation areas located in the Sergipe river basin which r equire sustainable use, such as national forests and areas of ecolog ical int erest, state pa rks, ecologica l stati ons, biological reserv es and state res erves. A ll of the interventions wil l take ne cessary measures to avoid negative effects on these conservation and protected areas. In the case of interven tions in protected areas t hat allow for some type of susta inable use, t he

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necessary authorizations will be obtained from the local environmental authorities and the procedures adopted will be assessed in the EMP.

78. The Project has a major concern rega rding th e protection and re storation of riparian vegetations. Th e EA r ecommends specific actions to reclaim th e reservoir and river banks, including the APPs located inside the irrigation projects. The specific mitigation measures to avoid or m itigate f urther riparian veg etation degrad ation w ill b e further defined for each intervention. Natural habitats impacts will be addressed during the basic engineering and permitting phase, before construction.

79. An additional field visit by the project environmental team confirmed the EA conclusions

regarding the coun terpart interventions impacts on nat ural habitats. Bo th Aracaju South and West existing wastewater treatment plants are surrounded by unoccupied areas, and their expansion does not require deforestation. Barra dos Coqueiros wastewater treatment plant is loc ated n ear an urban ar ea of recent exp ansion, ha s a dopted appropri ate mitigation measures to reduce odo r impacts, the selection of outfall location considered minimizing impacts on natural habitats and improved water quality and does not generate direct impacts to nearby mangroves in the estuary of the Sergipe River.

Re-Vegetation 80. The Project will restor e degraded ripari an areas, expand the se areas w ith approp riate

vegetation and pro mote re-veg etation as par t of the EMP. The main compensatory measures will also include a demarcation, with markers approximately every 100 meters, for the APPs around the Poção da Ribeira and Jacarecica I reservoirs. Only native species from the region, as selected by ADEMA, will be used in the re-vegetation activities.

Pest Management 81. The Project will finance the modernization and rehabilitation of the Poção da Ribeira and

Jacarecica I irrigated peri meters. The EA repo rt in cludes an evaluation o f the existing pesticide framework and the EMP includes activities designed to promote integrated pest management inside the project area. In addition, the Project will support the development of a pest management plan for the Sergipe river basin to regulate the use of pesticides, as part of the efforts to modernize the state’s irrigation sector.

Preservation of Physical Cultural Resources 82. The Project will involve construction and excavation to expand and rehabilitate water and

sanitation systems as w ell as modernize irrigation infra structure. There are cultural, archeological and paleontological resources in some of the intervention areas, as listed in the environmental assessment. The State of Sergipe will include procedures for screening any kn own a nd unknown cult ural property in the project area and in corporate ‘ch ance find’ proced ures in th e event that culturally significant re sources are d iscovered du ring

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implementation. Proced ures for th e id entification and protec tion of p hysical cultural resources ha ve be en in cluded in the EMP. Mo reover, Brazil ha s a wel l-developed legislative and normative framework for management of physical cultural property, which is under the oversight of the National Institute of Historical, Cultural and Artistic Heritage (Instituto do Patrimônio Histórico, Artístico e Cultural Nacional, IPHAN) and w ill be followed during the project’s implementation if needed.

Dam Safety 83. Physical interventions for the reh abilitation of irrigation perimeters and the expansion of

the w ater supply network within the Sergipe river basin in volve water that is supplied from local dams. Although an increase in storage capacity is not envisioned, dam safety issues w ill be in cluded in the environmental assessment of each da m to ens ure th at relevant W orld Bank policies will be applied. In a ddition, pri or to im plementing modernization and rehabilitat ion of public irrigation perimeters to be financed by World Bank funds under Component 2, CO HIDRO will c ommission an Ind ependent Safety of Dams Pa nel fo r the Poção da Ri beira a nd Ja carecica I and II da ms, satisfactory to the World Ba nk, and d emonstrate ev idence of th e i mplementation of an action plan and adoption of measures recommended by the Panel.

Resettlement Policy Framework 84. It is expected that Pr oject in terventions will not resu lt in involun tary resettlement;

however, an RPF was prepared stating principles and procedures to guide the resettlement process for all cases arising during implementation. The RPF includes: (i) data collection, including a ca dastre of pote ntially affected families and a land ca dastre; (i i) procedures for the prep aration of sub-project specific Resettlement A ction Plan(s), i ncluding the generation of a socioeconomic profile of affect ed families, valuations of affected assets, qualitative and quantitative assessments of the nature and degree of the impacts involved, and refined definitions of resettle ment options and eligibility criter ia; and (iii) an a ction plan that specifies institutional responsibilities, a ti metable, and a bu dget. Once the draft Resettlement Plan(s) has been reviewed to ensure consistency with the RPF and national legislation, it will be sent to the Bank for review and “no objection.”

85. Under Co mponent 1, the Pro ject w ill provi de technical assi stance for solid waste management. In this case, the RPF will assist the Borrower to a ssess the potential social and economic i mpacts of the co nstruction o f new landfil ls, including any possible livelihood effects on waste sca vengers. The RPF, w hich incorporates the Social A ction Plan for Was te P ickers prep ared f or the Worl d B ank-financed C aixa Solid Wa ste an d Carbon Fin ance Project (P106702), i s al so an inte gral part of t he EMP. The State has confirmed that the creation and expansion of e nvironmental conservation areas will not involve any resettlem ent of populati on. N evertheless, as this acti vity could pote ntially result in re strictions of local people’s a ccess t o legally designated protected areas, a

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Resettlement Process Fr amework h as been prepared by the Borrow er to addr ess and mitigate any ensuing risks to the affected people.

86. Under Component 2, the modernization and rehabilitation of the irrigation perimeters will

affect approximately 10 non commercial fishermen, 33 settlers w ho have extended their pasture land and o ther crops i nto the A PP, 5 workers’ ho uses and 3 small b ars living and/or usin g i n the environmentally protection area s surrounding the Jacarecica I reservoir and 20 s mall ho uses, 14 s mall bars, 9 farming and pastur e lands and 5 other minor supp ort const ructions in the environ mentally protection areas surro unding th e Poção da Ribeira I reservoir.

 

87. A consultation was un dertaken by COHIDRO with the r esidents th at are currently illegally oc cupying the environmentally prote cted area of the Jaca recica I re servoir to inform them of the propose d project interventions, assess their expectations and d iscuss possibilities. COHIDRO, with support from EMDAGRO and SEMARH, intend to carry out consultations with all occupants of the other environmentally protected areas both in the reservoirs and irrigation perimeters targeted by the Project. This consultation process will also be su pported by AD EMA a nd, if nece ssary, b y the stat e’s Public Attorney ’s Office. The expectation is that from these consultations a TAC will be signed between the occupants and the involved institutions to s et guidelines and rules for the o ccupation of these areas.

88. The TA C is an administrative instrument us ed by public institutions, especially by th e

Public A ttorney’s Offi ce, to bind agreements b etween th em, the environmental agency responsible for the enforcement of the environmental law and the individual(s) impacting, or on the verge of impacting, the environment in a negative way. The TAC i s considered an e xtra-judiciary agreement by which the individual(s) a dmit to being a ware of the negative impact th ey are causing t o the environment a nd commit to, i n a g iven t ime frame, stop causing the said damage and/or to restore the environment to its original state. In case the TAC is not carried out as stipulated, the responsible public institution (usually the environmental agency) can leg ally execute the TAC s o that i ts terms are c arried out and can also pursue legal san ctions to the f aulty part y. Th is legal instru ment has been frequently used in Bra zil in general, as w ell as in Sergipe, as a way to mediate conflicts when a given environmental infraction is identified.   

 

89. ADEMA and COH IDRO a re currentl y preparing and discussi ng w ith the o ccupants a TAC that will set the conditions for the environmental licensing of both perimeters, which will in clude the cond itions and restrictions for the u se and occu pation of those environmentally p rotected areas surrounding th e rese rvoirs. ADEMA has b road experience in the preparation and implementation of TACs as this is an ins trument that has be en frequen tly us ed in th e S tate to gu ide and me diate co nflicts caused a n environmental infraction. This approach is preferred as a way to negotiate th e ter ms of

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use and any rehabilitation activity that must be undertaken by the irregular user or person committing the infraction. The results fro m adopting a TAC have proven to b e m ore advantageous, with b etter results for th e recuperation of the environmentally depredated area than the more di rect a pproach of i mposing a fin e and removing th e irregu lar occupant. The State of Sergipe has adopted a sympathetic approach to landless squatters and irregular occupants of environmentally protected area s a lways preferring to asses s and negotiate viable solutions rather than forced expropriations.

90. Within the Jacarecica I I irri gation perimeter, there a re organize d social movements,

including two irregular sett lements in the adjacent areas to the perimeter, encompassing the Fazenda Tingui with 366 families and Mario Lago settlement with 96 families, as well as the Tabua community, with 28 families, which is irregularly occupying a legal reserve area within the perimeter. Approximately three hectares of the lands currently being used by these communities belongs to COHIDRO. These are irrigated plots that receive water from the Jacarecica II da m, and COHIDRO officials are willing to all ow the these communities to continue to use th ese p lots as part of an even tual o verall settlement involving na tional agencies and p rivate land owners. Th e project will only finance technical assist ance ac tivities intended to assess the viability of various social, environmental, technical and economic solutions related to this perimeter.

 

91. Under Component 3, an initial analysis of the types, scales and locations of the proposed interventions determined th at l and ac quisition was n ecessary fo r only o ne Bo rrower financed in vestment project – the Barra dos Coqueiros Sewage Trea tment Plan t. The Borrower prepared a sa tisfactory Reset tlement P lan that describes the need to a cquire a small portion of unimproved pasture land (14,000 m2) from a single large landowner, and the steps taken to compensate for this loss . The Res ettlement Policy Framework will similarly guide the resettlement process should any land acquisition or resettlement prove necessary d uring the preparation of detail ed engineering designs. These engin eering designs w ill take in to account the need to avoid re settlement both dur ing and after the construction process.

 

92. The Borrower has also agreed to ensure that the terms of re ference for any studies to be carried out for the int erventions under th e Project are s atisfactory to the Bank and will incorporate the requ irements of th e Bank s afeguards policie s as applied to t he advice conveyed and conclusions reached through these studies.

Communication and Sanitary and Environmental Education 93. The communication and sanitary environmental education plan aims to define a policy for

action in the environmental and water resources area. It will involve activities such as: (i) defining a social communication strategy for environmental and w ater resources issues; (ii) supporting ex ternal social communication acti ons; and (iii) consoli dating th e

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environmental edu cation p rogram in the S tate. In add ition, th e plan aims to support project implementation by involving the population directly and indirectly affected by the interventions and the areas of influence. The communication plan will mainly involve the people li ving in areas w here works wil l be performed an d will be developed in an integrated manner to achieve the Project’s objectives.

Environmental Construction Manual 94. The ECM aim s to ensur e that works do not result in environmental degradation. It w as

developed as a guid e for approp riate environmental practices that the cons truction companies should follow when undertaking civil works for the construction of WSS systems. It will be inco rporated i nto t he bidd ing docu ments to ensure that al l involved parties have a prior knowledge o f the env ironmental conditions and this w ill become a contractual obligation of the construction companies.

95. The implementation of the ECM is the responsibility of UAPAS, DESO and COHIDRO

as well as the construction companies. The ECM is consistent with Bank Envi ronment, Health and Safety standards and i ncludes.: (i) the Project’s social and environ mental management s ystem; (i i) e nvironmental actions and rules related to the execution and management of ci vil works, construction sites, risk management and emergency actions for constructi on, environmental edu cation for th e works and a code of conduct for t he works, health and s afety regulations for the works, management and d isposal of garbage from the works, noise and dust control, yard equipment, traffic control, road service, and construction waste amongst oth ers; (ii i) environmental actions and rules re lated to the construction activities depending on the ty pes of subprojects se lected; and (iv) plan for the control and recovery of areas for disposal of excavation areas.

6. IMPLEMENTATION ARRANGEMENTS FOR THE PROJECT

96. In accordance with th e proposed inst itutional arrange ment, S EMARH will manage th e

Project with the suppor t of t he U APAS. SEMA RH/UAPAS is responsi ble for the environmental management of activities for Components 1 and 2 and DESO for activities for Component 3, under the supervision of SEMARH/UAPAS. As overall coordinator of the Project, UAPAS will be responsible for the social and envi ronmental actions of the Project, including adherence to Brazilian environmental legislation, the safeguard policies of the Bank and the commitments assumed by each executing agency to comply with and implement mitigation measures to reduce iden tified environmental impacts. The UAPAS will be staffed by one environmental and one social specialist, responsib le for ensu ring that all Bank safeguards applied to the Project are complied with and that all works under implementation follow the EMP, the RPF, the PF and other related docu ments. The environmental and social s taff at U APAS w ill also p rovide s upport to the ben eficiary agencies and to D ESO on th e preparation of sp ecific environmental assessments, public

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consultations and pr eparation of Resettlement Action Plans, when ever t hey may be required.

97. The UA PAS Coord inator and th e En vironmental M anagement Coor dinator will be

responsible for: (i) coordinating the social and environmental activities of the Project; (ii) screening the proposed subpro jects, designing and reviewing speci fic environmental assessments and planning s pecific mitigation plans when relevant a nd approving those plans before contracting the works; (iii) inspecting and guiding the implementation of the social and environmental measures required for process ing the env ironmental li censes and the recommendations of eac h specific environmental assessment; and (iv) provi ding inputs, sup ervising, monitoring and assessing th e implementation o f the i nstitutional strengthening activities related to social and environmental aspects.

 

98. The UAPAS Coordinator will be res ponsible for monitoring the construction companies as part of the environmental supervision of the c ivil works. The following are the main functions relating to the environmental management of the Project:

(i) UAPAS E nvironmental Manag ement Coordinator will b e r esponsible for th e

coordination of social and environmental actions of the Project with the environmental management area of DESO, COHIDRO and EMDAGRO and with ADEMA;

(ii) The environmental supervi sion of the works will b e und ertaken by an ind ependent consultant or consulting fi rm that is specifically contra cted to sup ervise th e proj ect works. This co mpany w ill in clude a specialized environmental s upervision team responsible for guiding and monitoring env ironmental actions included in the ECM as well as i mplementing t he relevant m itigation m easures in dicated in t he environ mental licenses and complementing the work of the Environmental Management Coordinator.

(iii)The environmental planning of the w orks fal ls under the responsibility of the construction companies, w ho should follow the E CM and i mplement the mitigation measures o utlined i n the environ mental licensing a nd the b idding d ocuments for th e works.

7. INSTITUTIONAL STRENGTHENING PROGRAM

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99. Component 1 w ill finance instit utional st rengthening measures t hereby complementing the proposed environmental impact mitigation measures and strengthening the executing agencies’ cap acity for social and environmental management. A numb er of planned actions are ai med at supporting managers and techn icians i nvolved in the Project and meeting environmental management c hallenges in a l ong-term a nd c omprehensive manner. These actions include:

a. Sustainability policy for the executing agencies and beneficiaries: the broad array of proposed actions in t he Sergipe ri ver basin se rves as an oppor tunity t o establish common guidelines and procedures for environmental management. This activity will have two main objectives, namely to incorporate social and environmental dimensions throughout the en tire subproject cycle and to facilitate the environmental licensing of the involved companies;

b. Appropriate organization of social and environmental management of the institutions involved in project implementation: the measures tak en to st rengthen management capacity will cla rify t he role s and responsibilities of th e v arious teams directly or indirectly involved in social and environmental management to ensure that they better handle the day-to-day demands within SEMARH and ADEMA.

c. Environmental and water resources management i nstruments: th e d evelopment and strengthening of management i nstruments wil l i nvolve: (i) cadastre of u sers, water rights and collection of water charg es; (ii) develop ment o f ecol ogical and econo mic zoning; (iii) strengthening and integration of environmental licensing and water rights procedures; and (iv) development and i mplementation o f a g eographic infor mation system (SIG-Ambiental).

d. Skills dev elopment: this w ill pri marily cons ist of training related to management of social and environ mental i mpacts, which will b e provid ed to the management and technical teams throug h cours es a nd se minars. It wil l emphasize th e exchange o f experiences with other ins titutions to recognize the dissemination of best practices i n the implementation o f environmental management s ystems, ri sk management and other relevant exper iences (for e xample, CO GERH fro m Ce ará; PRO DAM micro-basin actions; payment for environmental services in Espírito Santo). These pro posed actions sho uld b e implemented through partnerships with oth er public institutions, licensing agencies and universities;

e. Research pr iorities: the Project will finance technical studies, including seminars and workshops, on the following topics: (i) planning, governance and institutional models; (ii) strengthening and integrati on of e nvironmental li censing and wate r rig hts procedures; (iii) efficiency improvements for COHIDRO and DESO; (iv) regulation of WSS services; (v) ec onomic incentives and payment for environ mental services; (vi) creation, expansion an d adequ ate management of state conservation areas; (vii) modeling for ru ral sani tation management; (viii) dev elopment of plans for the management of protected areas in the Serg ipe ri ver basin : (ix) prioritization and recovery of degr aded areas; and (x ) modeling for regional solutions f or urban solid waste management within th e gu idelines established by the World Bank-financed Caixa Solid Waste and Carbon Finance Project.

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100. The EMP comprises institutional strengthening actions and training for relevant staff.

The p lanning and im plementation o f trai ning, st udies and other activities will r equire consultants and/or ag reements with p artner sector an d acad emic i nstitutions with recognized technical competency in the p roposed th emes. Broad participation fro m technical tea ms from r elated institutions sh ould be encour aged in th e undertaking of studies. The preparation of these studie s wi ll take in to account the Bank’s social and environmental safeguards with re gard to phy sical in terventions and /or policy proposals, in particular the assessment of potential environmental impacts, the design of mitigation and compensation programs and consultations with the interested public.