Report No. 23828 Report No: I059161 <--Please check for duplicates! Integrated Safeguards Data Sheet (Initial) Date ISDS Prepared/Updated: 03/11/2002 Section I - Basic Information A. Basic Project Data Country: MEXICO Project ID: P059161 Project: Climate Friendly measures in Transport Task Team Leader: Walter Vergara Authorized to Appraise Date: August 26, 2002 IBRD Amount ($m): Bank Approval: September 17, 2002 IDA Amount ($m): Managing Unit: LCSEN Sector: VY - Other Environment Lending Instrument: Specific Investment Loan (SIL) Status: Lending I.A.2. Project Objectives: The project development objective is to contribute to the development of policies and measures that will assist in a long-term modal shift toward climate-friendly, more efficient and less polluting, less carbon intensive transport in the Mexico City Metropolitan Area (MCMA). Specifically, the project will support aspects of the recently completed Air Quality Management Plan (2002-2010) which are consistent with the GEF operational program on sustainable transport (OP-11) and the Climate Action Plan for Mexico City. I.A.3. Project Description: The project consists of six components: a) Harmonization of sector strategies on air quality issues and Integrated Climate Action Plan for Transport (CAP) in the MCMA ($0.8 million with a $0.4 million GEF grant). This component will support efforts to: a) facilitate the process of integration of strategies between the air quality (the air quality management plan), urban plan (land use plan) and transport sector plan in order to facilitate the adoption of harmonized policies on the air quality area; b) assess urban development models as linked to the process of air quality management; and c) assist in the development, evaluation and monitoring of the Mexico City Climate Action Plan as it relates to the transport sector. It is anticipated the plan will be adopted under the project by the end of PY1. The project will finance consultancy studies and equipment. b) Definition of an enabling environment to facilitate the implementation of sustainable transport strategies ($4.8 million with a $2.9 million GEF grant). The key project activity will focus on the promotion of measures that will facilitate a modal shift in the transport sector of the Metropolitan area (from one based on an increasing share of small, gasoline-based vehicles to a system based on high capacity, fuel efficient and low carbon emitting vehicles, running along transport corridors and linked and integrated with the Metro system). To this effect, the project will focus on the adoption of an enabling policy and regulatory environment that will permit the development of transport corridors, as a key element of the modal shift. Transport corridors are expected to lead to a more efficient, less polluting public transport sector. The project will support a review of management and business organization measures that may be required to promote the adoption, design and use of corridor infrastructure, including a system of business organization, the concessions for specific bus line operations and the structuring of integrated fares. The component will also fund technical assistance to identify, improve and facilitate the adoption of economic incentives and regulatory system reforms required to overcome barriers to adoption of high capacity and non-motorized transport. This component will support the reform of public transport regulations for the proposed corridors. In addition, an institutional framework for the corridors including the integration with the metro will be defined and measures to promote metro rider-ship will be identified. This component will also finance an assessment of organizational measures proposed by the Mexico City Authorities to improve air quality and public transport efficiency. The studies will have a metropolitan character and would be commissioned after endorsement by the SMA, SETRAVI and the Secretary of Communications and Transport of the State of Mexico. This component will also support an action plan for non-motorized transport. The objective of this action plan is to promote the use of bicycles as a mode of transport and aims at diverting commuters from motorized modes, especially private cars. Emphasis would be placed on campaigns to (a) expand bicycle use by improving its image and explaining its advantages, (b) raise traffic safety awareness, and (c) provide incentives to schools, employers, building managers, car park operators, and the Metro to provide bicycle parking on their premises. The program will be designed based on the large body of experiences (Europe, Bogota, Santiago, others) and literature to ensure that the resources available will be used as effectively as possible. The project will finance consultancy services and technical assistance. The outputs of this component will facilitate the adoption of measures required to implement the corridors which would be funded under the proposed Second Air Quality and Transport Project. The outputs however are important even if the loan does not materialize. c) Field Test of Climate-Friendly High Capacity Vehicles ($4.8 million with a GEF grant of $1.6 million). This component will support a comparative pilot (field test) for alternative bus and fuel technologies (hybrid and CNG) and modern diesel vehicles to test the comparative and absolute technical, economic, and environmental viability and climate advantages under typical operations in the MCMA. The testing vehicles will operate on a route, chosen to represent the average conditions of the metropolitan area, in terms of supply, demand, physical and topographic characteristics, and service providers. The buses will be operating on normal conditions, and their emissions would be regularly measured under a scientifically designed and statistically representative test protocol (the test protocol, including - 2 - sample size, will be designed during project preparation by IMP with assistance from MIT, University of West Virginia and the Institute for Transportation Studies at the University of Berkeley). Mexico city is an appropriate venue for this test given: i) the magnitude of the air quality problem; ii) the just completed comprehensive air quality management plan; iii) the availability of a modeling tool, focused on the characteristics of the metropolitan area to simulate and evaluate impacts of the proposed measures; iv) the presence of bus manufacturers; and v) available data on local and greenhouse gas emissions (inventories) that provide the current baseline. In particular, the test results will greatly benefit from the availability of the Multiscale Climate and Chemistry Model, recently adopted by the metropolitan authorities to simulate the impact on air quality and human exposures to specific air quality measures, developed during the assistance to the formulation of the air quality management plan. The project will partially fund the incremental cost of the vehicles and the cost of the testing and monitoring protocols. This field test will consist of real time measurement of the following parameters: a) emissions (local and global) resulting from current and anticipated driving cycles; b) real operating costs; c) fuel efficiency per type of vehicles, and other indicators of sustainable transport (Annex 9). The results of this test will be of value to other high altitude cities, such as Bogota and Quito in the region. The test protocol will be ready by CEO endorsement. d) Technical assistance and training for incorporation of climate change and air quality considerations in the design and analysis of transport strategies (US$0.8 million; funded with a US$0.4 million GEF grant). This component will finance technical assistance and capacity building in order to incorporate climate and environmental considerations in the design of transport projects. Technical assistance, capacity building and training will be provided in the following aspects: a) Review and support to the restructuring of legal functions for SETRAVI as related to transport planning; b) Cost-benefit analysis using inter-alia, the data produced by the field test and including considerations of infrastructure costs and local and global environmental impacts, using the data produced by the field test (component c); c) Measurement of emissions from bus transport; including training to bus operators, mechanics, and maintenance staff; and d) Implementation of regulations. e) Public Awareness and Dissemination ($0.3 million, $0.3 million GEF grant). This component will support the design of a public campaign with respect to the impacts of sustainable transport strategies on climate change, other environmental and health impacts, outlining the advantages and objectives of transport corridors as well as benefits from the use of high capacity vehicles and non-motorized modes of transport . This component will also support the dissemination of technical information produced by the project and will promote and finance workshops and -3 - stakeholder meetings. f) Project Management ($ 0.7 million, $0.2 million GEF grant). This component will support the management of the project activities, including monitoring and evaluation. The project will finance management costs in the form of consultancy services and travel. The implementation agency will be the Secretary of Environment of the Mexico City Government (SecretarUa del Medio Ambiente del Gobierno del Distrito Federal). Components: Harmonization of sector strategies and Integrated Climate Action Plan (CAP) for the MCMA. Enabling environment to facilitate the implementation of sustainable transport strategies. Field Test of Climate-Friendly High Capacity Vehicles and action plan for non-motorized transport. Incorporation of climate change and air quality considerations in the design and analysis of transport startegies. Public Awareness and Dissemination. Project Management. I.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites or critical natural habitats, or any other culturally or socially sensitive areas.) The project will be located in the Mexico City Metropolitan Area (MCMA). It constitutes one of the largest metropolitan areas in the world, contains 19% of the country's population and is the largest area-source of pollutants in the country. It has an area of 4,945 km2, an altitude of 2,240 m above sea level and is surrounded by mountains with an average height of 3,200 m with peaks of 5,400, which induces frequent thermal inversions in the atmosphere. Population has grown from 3.0 million in 1950 to 18.8 million today and is expected to grow at an annual rate between 1-2% over the next 25 years. This large population and the associated urban growth has put many Mexicans at risk to the health hazards of air pollution. B. Check Environmental Classification: C (Not Required) Comments: The project will fund studies, policy reform and a field test of climate friendly vehicles, none of which will have any adverse environmental impacts. C. Safeguard Policies Triggered Policy Applicability Environmental Assessment (OP/BP/GP 4.01) No Forestry (OP/GP 4.36) No Natural Habitats (OP/BP 4.04) No Safety of Dams (OP/BP 4.37) No Pest Management (OP 4.09) No Involuntary Resettlement (OP/BP 4.12) No Indigenous Peoples (OD 4.20) No Cultural Property (OP 4.11) No Projects in Disputed Territories (OP/BP/GP 7.60)* No - 4 - Projects in International Waterways (OP/BP/GP 7.50) No *By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas Section II - Key Safeguard Issues and Their Management D. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data. II.D.la. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts. The project will focus on climate change-related policy and regulatory reform and the development of a climate action plan. In addition, there will be a field test of climate friendly buses (about 12 buses). The field test will involve established routes, will not require any new works and therefore will not involve any social issues and the only environmental issues are related to standard maintenance of the vehicles, such as disposal of waste oil. Therefore no safeguard policies are triggered. In order to ensure the environmental benefits of the project in the short and long term are maximized, the policy reform and field test, including the chosen routes for the field test and transport corridors, will be based on an extensive characterization of the airshed of the Mexico City Metropolitan Area and assessment of environmental impact of transport policy options done under the WB environment sector work. II.D.lb. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. II.D.lc Describe any potential long term impacts due to anticipated future activities in the project area. II.D.2. In light of 1, describe the proposed treatment of alternatives (if required) II.D.3. Describe arrangement for the borrower to address safeguard issues II.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The project is expected, as described before, to enable the mainstreaming of harmonized climate change strategies into the transport and air quality management plans. Accordingly, the key interlocutors are the transport and environmental authorities in Mexico City and the State of Mexico. In addition, the transport companies operating in the area will also play an important role. These agencies and groups have participated in discussions leading to the conceptualization of the project. Other important stakeholders, such as the secretaries of finance, technical and planning agencies, citizen groups and others will be engaged - 5- through meetings and discussions during preparation of the project. A project advisory committee will be constituted to provide an overview and quality control during project preparation, representing all key stakeholders. E. Safeguards Classification. Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply. I S1. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in management of one or more safeguard areas I S2. - One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable [XI S3. - No safeguard issues I SF. - Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues. F. Disclosure Requirements Environmental Assessment/Analysis/Management Plan: Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Date of distributing the Exec. Summary of the EA to the ED (For category A projects) Resettlement Action Plan/Framework: Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Indigenous Peoples Development Plan/Framework: Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Dam Safety Management Plan: Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop If in-country disclosure of any of the above documents is not expected, please explain why. Signed and submitted by Name Date Task Team Leader: Walter Vergara 3/11/02 Project Safeguards Specialists 1: Project Safeguards Specialists 2: Project Safeguards Specialists 3: Approved by: Name Date Regional Safeguards Coordinator: Juan Quintero 3/11/02 Sector Manager/Director: John Redwood 3/11/02 - 6 - For a list of World Bank news releases on projects and reports, click here - 7 -