Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD3009 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT PAPER ON A PROPOSED ADDITIONAL LOAN IN THE AMOUNT OF US$100 MILLION TO THE PROVINCE OF BUENOS AIRES WITH THE GUARANTEE OF THE ARGENTINE REPUBLIC FOR A Metropolitan Buenos Aires Urban Transformation Project Additional Financing May 24, 2019 Social, Urban, Rural And Resilience Global Practice Latin America And Caribbean Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective May 6, 2019) Currency Unit = Argentina Peso ARS 44.81 = US$1 US$ 0.022 = ARS 1 FISCAL YEAR January 1 - December 31 Regional Vice President: Axel van Trotsenburg Country Director: Jesko S. Hentschel Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez Practice Manager: Ming Zhang Task Team Leader(s): Catherine Lynch, Beatriz Eraso Puig ABBREVIATIONS AND ACRONYMS AF Additional Financing AMBA Buenos Aires Metropolitan Area (Area Metropolitana de Buenos Aires) CABA Autonomous City of Buenos Aires (Ciudad Autónoma de Buenos Aires) CPF Country Partnership Framework DSA Debt Sustainability Analysis EE Energy Efficiency ESMAP Energy Sector Management Assistance Program ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FM Financial Management GDP Gross Domestic Product GoA Government of Argentina GRS Grievance Redress System IPMP Integrated Pest Management Plan IVBA Provincial Housing Institute MISP Ministry of Infrastructure and Public Services (Ministerio de Infraestructura y Servicios Publicos) NPV Net Present Value OPISU Provincial Organization for Social and Urban Integration (Organismo Provincial de Integración Social y Urbana) PAP Project Affected People PBA Province of Buenos Aires (Provincia de Buenos Aires) PDO Project Development Objective RAP Resettlement Action Plan RPF Resettlement Policy Framework SECISYU Secretariat for Social and Urban Integration (Secretaria de Integración Social y Urbana) Argentina Metropolitan Buenos Aires Urban Transformation Project Additional Financing TABLE OF CONTENTS I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING ........................................ 7 II. DESCRIPTION OF ADDITIONAL FINANCING .................................................................... 13 III. KEY RISKS ..................................................................................................................... 20 IV. APPRAISAL SUMMARY .................................................................................................. 21 V. WORLD BANK GRIEVANCE REDRESS .............................................................................. 26 VI SUMMARY TABLE OF CHANGES ..................................................................................... 27 VII DETAILED CHANGE(S) .................................................................................................... 27 VIII. RESULTS FRAMEWORK AND MONITORING ................................................................... 31 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) BASIC INFORMATION – PARENT (Metropolitan Buenos Aires Urban Transformation Project - P159843) Country Product Line Team Leader(s) Argentina IBRD/IDA Catherine Lynch Project ID Financing Instrument Resp CC Req CC Practice Area (Lead) P159843 Investment Project GSU10 (9351) LCC7C (6297) Social, Urban, Rural and Financing Resilience Global Practice Implementing Agency: Ministry of Infrastructure and Public Services, Province of Buenos Aires, Secretariat for Social and Urban Integration (SECISYU), Autonomous City of Buenos Aires, Provincial Organization for Social and Urban Integration (OPISU), Province of Buenos Aires, Ministry of Economy and Finance, Autonomous City of Buenos Aires, General Secretariat, Autonomous City of Buenos Aires, Ministry of Economy, Province of Buenos Aires ADD_FIN_TBL1 Is this a regionally tagged project? Bank/IFC Collaboration No Original Environmental Approval Date Closing Date Current EA Category Assessment Category 27-Feb-2017 30-Jun-2023 Full Assessment (A) Full Assessment (A) Financing & Implementation Modalities Parent [ ] Multiphase Programmatic Approach [MPA] [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-Linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) May 24, 2019 Page 1 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) Development Objective(s) The Project Development Objectives are to improve housing conditions and access to selected basic services and infrastructure in selected disadvantaged neighborhoods in the Buenos Aires Metropolitan Area (AMBA), and strengthen the institutional capacity for urban management at the metropolitan level. Ratings (from Parent ISR) RATING_DRAFT_YES Implementation 13-Jun-2017 08-Dec-2017 02-May-2018 06-Dec-2018 Progress towards achievement of PDO S S S S Overall Implementation S S S S Progress (IP) Overall Safeguards Rating S S S S Overall Risk S S S S BASIC INFORMATION – ADDITIONAL FINANCING (Metropolitan Buenos Aires Urban Transformation Project Additional Financing - P166935) ADDFIN_TABLE Urgent Need or Capacity Project ID Project Name Additional Financing Type Constraints P166935 Metropolitan Buenos Aires Restructuring, Scale Up No Urban Transformation Project Additional Financing Financing instrument Product line Approval Date Investment Project IBRD/IDA 18-Jun-2019 Financing Projected Date of Full Bank/IFC Collaboration Disbursement 30-Jun-2025 No May 24, 2019 Page 2 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) Is this a regionally tagged project? No Financing & Implementation Modalities Child [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Disbursement-Linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) [ ] Contingent Emergency Response Component (CERC) Disbursement Summary (from Parent ISR) Net Source of Funds Total Disbursed Remaining Balance Disbursed Commitments IBRD 200.00 77.84 122.16 39 % IDA % Grants % PROJECT FINANCING DATA – ADDITIONAL FINANCING (Metropolitan Buenos Aires Urban Transformation Project Additional Financing - P166935) PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFi n1 SUMMARY (Total Financing) Proposed Additional Total Proposed Current Financing Financing Financing Total Project Cost 242.50 125.00 367.50 Total Financing 242.50 125.00 367.50 of which IBRD/IDA 200.00 100.00 300.00 May 24, 2019 Page 3 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) Financing Gap 0.00 0.00 0.00 DETAILS - Additional Financing NewFinEnh1 World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 100.00 Non-World Bank Group Financing Counterpart Funding 25.00 Borrower/Recipient 25.00 COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [ ✔ ] No Does the project require any other Policy waiver(s)? [ ] Yes [ ✔ ] No INSTITUTIONAL DATA Practice Area (Lead) Social, Urban, Rural and Resilience Global Practice Contributing Practice Areas Energy & Extractives Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks May 24, 2019 Page 4 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) Gender Tag Does the project plan to undertake any of the following? a. Analysis to identify Project-relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF Yes b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment Yes c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes PROJECT TEAM Bank Staff Name Role Specialization Unit Team Leader (ADM Catherine Lynch Urban Development GSU10 Responsible) Beatriz Eraso Puig Team Leader Urban Development GSU10 Procurement Specialist (ADM Ana Maria Grofsmacht Procurement GGOPL Responsible) Financial Management Alejandro Roger Solanot Financial management GGOLF Specialist (ADM Responsible) Social Specialist (ADM Santiago Scialabba Social development GSU04 Responsible) Environmental Specialist (ADM Tuuli Johanna Bernardini Environment GENLC Responsible) Alvaro Larrea Team Member Procurement GGOPL Augustin Maria Peer Reviewer Urban Development GSU11 Carlos Alberto Molina Social Specialist Social GSU04 Prieto Claudia Patricia Pacheco Team Member GSU10 Florez Ellen Hamilton Peer Reviewer Urban Development GSU11 Graciela Dora Broda Team Member LCC7C Horacio Cristian Terraza Team Member Urban Development GSU10 May 24, 2019 Page 5 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) Luis M. Vaca-Soto Team Member Energy GSU10 Maria Elizabeth Grandio Team Member Procurement GGOPL Maria Virginia Hormazabal Team Member Finance Officer WFACS Nancy Lozano Gracia Team Member Urban Economics GSU10 Pilar Elisa Gonzalez Counsel Legal LEGLE Rodriguez Santiago Ezequiel Arias Team Member Urban planning GSU10 Sergio Gabriel Kormos Team Member Infrastructure GSURR Uwe Steven Brandes Team Member Urban planning GSU10 Yoonhee Kim Peer Reviewer Urban Development GSU12 Extended Team Name Title Organization Location May 24, 2019 Page 6 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING A. Introduction 1. This Project Paper seeks the approval of the Executive Directors to provide an additional loan in an amount of US$100 million to the Province of Buenos Aires (PBA) for the Metropolitan Buenos Aires Urban Transformation Project. The Additional Financing (AF) would support the scaling up of activities under Component 2 - Habitat Improvement of Disadvantaged Neighborhoods in Greater Buenos Aires by financing activities of the same nature as the Project. The AF does not require a change to the Project Development Objective (PDO) and does not change the Environmental Assessment Category; it also does not trigger any new safeguard policies. 2. The Project Paper also reflects a Level Two restructuring of the Project to: (i) revise the scope of Component 2: Habitat Improvement of Disadvantaged Neighborhoods in Greater Buenos Aires; (ii) revise the Results Framework; (iii) revise the implementation arrangements to include the Provincial Housing Institute’s (IVBA) role in the procurement of the construction of new houses for resettlement; (iv) include the Environmental and Social Incident Reporting requirement. The safeguard documents were updated to reflect the revised scope of the Project. B. Country and Sector Issues Country Issues 3. Argentina has been engaged in a reform agenda to transform its economy, while confronting the challenge of unwinding macroeconomic imbalances and mitigating the social costs of the transition . In December 2015, the Government of Argentina (GoA) faced the challenge of pervasive macroeconomic imbalances, large microeconomic distortions, and a weakened institutional framework: large fiscal deficits, financial repression, monetization of the deficit, high inflation, and low investment were accompanied by price controls, large and regressive subsidies, trade restrictions, and the rationing of foreign currency. The GoA eliminated foreign exchange controls, initiated the process of realigning utility prices and reducing subsidies, and improved official statistics. The GoA also initiated structural reforms to strengthen the competitiveness of the economy and remove distortions holding back private sector-led growth, including reducing export taxes and easing import controls. However, the country remained vulnerable to market sentiment and changes in global financial conditions. 4. Despite the reforms put in place by the GoA, the tightening of global financial conditions in the first part of 2018 brought Argentina’s underlying vulnerabilities to the fore. Continued macroeconomic imbalances, with a primary deficit of 4.2 percent of GDP and inflation of 24.8 percent at end-2017, combined with high external financing needs given a current account deficit of 4.7 percent of GDP in 2017, made Argentina vulnerable to global financial turmoil. Accordingly, Argentina’s financial markets came under sudden pressure in April 2018, with a large depreciation of the peso and a rise in the sovereign risk premium. The impact of the severe drought on agricultural production and exports, together with a tightening of global financial conditions (U.S. dollar appreciation and an upward shift in U.S. interest rates) and a heightened increase in the perceived riskiness of the more vulnerable emerging markets were the initial drivers behind this turmoil. Events prompted the GoA to seek IMF financial support in May 2018. 5. The GoA reached an agreement with the IMF for a Stand-by Arrangement (SBA) of $50 billion in June 2018, expanded in October 2018, based on a strengthened set of economic policies . After a short period of relative calm after the initial SBA approval in June 2018, global financial volatility returned in the Page 7 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) second half of August 2018, leading to a widespread depreciation of emerging market currencies, which hit the Argentine Peso hard. In this context, the GoA requested the IMF for a revision of the SBA program to restore market confidence. The First Review of the SBA in October 2018 increased financing to $56.3 billion, and frontloaded disbursements from 2020-2021 to 2018-2019. The revised SBA included: (i) the acceleration of fiscal consolidation to achieve a primary balance in 2019 and a primary surplus in 2020; and (ii) the shifting from inflation targeting to a tight targeting of the monetary base. The Third Review was approved on April 2019, highlighting the falling fiscal and current account deficit. 6. The GoA is committed to address the key macroeconomic imbalances with the objective of creating an environment conducive to economic growth and employment creation. Going forward, Argentina aims to continue building a growth enabling policy framework to enhance credibility and support broad based growth and quality employment. In particular, the following policies will be important to reduce inflation and put Argentina on a sustainable growth path: (i) increase public spending efficiency as well as its efficacy, and reduce the fiscal deficit in line with SBA targets; (ii) continue fostering the credibility of the Central Bank so that monetary policy can anchor inflation expectations; (iii) strengthen competitiveness and productivity through an improved business environment and investments in infrastructure, increasing competition in markets, and improving the regulatory framework in sectors; (iv) continue strengthening the credibility of official statistics; (v) continue improving the provision of public goods (including transportation, health, and education) and reducing regional disparities; and (vi) expand and prioritize well targeted social assistance programs. Housing Issues 7. The housing deficit, combined with domestic and international migration to urban centers, has led to the proliferation of informal settlements with limited access to basic services . According to the 20161 census, there are approximately 4,416 informal settlements (“Barrios populares”) in the country with a total population of four million people. Half of these settlements have originated since 2000. This trend contrasts with many other countries in the region that have managed to increase housing supply and contain the proliferation of informal settlements. To address this issue, in October 2018 the GoA approved Law 27.453 on the Land Titling Regularization Regime for Social and Urban Integration to be applied in informal settlements. 8. The lack of affordable housing in the Buenos Aires Metropolitan Area (AMBA) is acute, and the proliferation of informal settlements has been increasing in the past decade . AMBA registered one of the highest population growth rates in the country, at an annual rate of 1.3 percent between 2001 and 2010, driven mostly by growth in the peri-urban area. Population growth has been accompanied by a low- density expansion pattern with a negative impact on the efficiency of public infrastructure and service provision, reinforcing social and economic segregation. It is estimated that 25 percent of the population in AMBA lives in poverty. But there is a significant difference in poverty rates between the Autonomous City of Buenos Aires (CABA) and the average in the municipalities that constitute the metropolitan area (11.2 and 31.9 percent of people respectively).2 There are 53 informal settlements in CABA, and 1,062 in the rest of the metropolitan area. There are also significant differences in access to basic services between core and periphery of the AMBA. 1 Relevamiento Nacional de Barrios Populares (RENABAP). December 2016. Jefatura de Gabinete de Ministros. 2 Incidencia de la pobreza y la indigencia en 31 aglomerados urbanos. Primer Semestre 2018. INDEC. Page 8 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) 9. The housing situation in the Province of Buenos Aires (PBA) is critical. According to the 2010 census, the housing deficit in the PBA is almost 26 percent, representing over 1.2 million households and 37 percent of the national deficit. The situation is most critical in the municipalities of the AMBA, in comparison with the interior of the PBA. Over 50 percent of the deficit is considered “critical”, including housing units that are not recoverable and those which lack sanitary facilities. The lack of access to quality water and sanitation infrastructure is also a challenge. According to 2010 data, 25 percent of households lack access to the public water system and 50 percent do not have access to the piped sewerage system. 10. Climate change impacts, coupled with geographical and socioeconomic characteristics of the project area, are exacerbating the already critical situation in the municipalities of the AMBA. Floods are the most recurrent and harmful natural hazards in the project area. The PBA has a well-known history of being affected by floods, which have been more frequent over the past decade as a result of climate change. With projected variations in precipitation, the flood risks are expected to increase. At the same time, through its Nationally Determined Contribution (NDC) submitted to the United Nations Framework Convention on Climate Change, Argentina has committed to the development and implementation of a National Adaptation Plan to prioritize adaptation actions at national level and to generate a framework to allow the design and implementation of actions at the local level. In the NDC, Argentina has also committed to reduce its GHG emissions by 15 percent in 2030 compared to business as usual scenario; this is to be achieved through several new policies and measures, including those related to energy efficiency improvements. Response to Housing Issues 11. To address the housing deficit and the growth of informal settlements, the City and Provincial Governments of Buenos Aires, with strong support from the National Government, have embarked on ambitious programs for the upgrading of the largest slums . The most emblematic and largest of the slums is Barrio 31, located in the city center with a population of 43,000 people. Since 2016, the Government of CABA, through the Secretariat for Social and Urban Integration (SECISYU), has been implementing a comprehensive program in Barrio 31 with support from this World Bank Project. The program follows an integrated approach that combines interventions in basic infrastructure, housing and habitat improvements, public spaces, health, education, employment and other measures for physical and social integration with the urban fabric. This Program is still under implementation with support from the Project, but remarkable transformation has already taken place, such as the construction of public facilities catering to community needs, and an initial batch of new housing and new public spaces. Through the work of around 200 social workers and community organizers, residents have actively participated in every aspect of this transformation. 12. Modeled after the successful initiative in Barrio 31, the Socio-Urban Integration of Informal and Precarious Settlements Plan was launched by the PBA Government to upgrade informal settlements through an integrated and multi-jurisdictional approach. In December 2017 the PBA approved the Socio- Urban Integration of Informal and Precarious Settlements Plan, which promotes the right to dignified and sustainable housing and habitat, based on Provincial Law 14,989 from 2012 (Just Access to Habitat Law). The Plan has the objective of "integrating into urban life the most vulnerable social sectors in terms of land tenure, access to infrastructure, essential public services, and adequate housing." There is an emphasis on strategic planning as an important tool for decision making, moving away from a model of fragmented and bureaucratic government actions. The integrated and multi-sectoral approach proposed by the Plan is aligned with the one being implemented by SECISYU: investments in infrastructure and housing upgrading are implemented together with strategies to increase access to health, education, Page 9 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) employment opportunities and quality public spaces, following a participatory approach. This integrated approach is fundamental to ensure the sustainability of the social fabric of the neighborhood, considering that physical investment in infrastructure and housing alone does not guarantee the future quality of social habitats. The interventions also aim to increase resilience of low-income communities to climate change and incorporate climate mitigation measures when feasible. In a first phase, the Plan aims to upgrade eight emblematic vulnerable neighborhoods in the PBA, including Villa Itati and Villa Azul in the Municipality of Quilmes (20,000 inhabitants) and Carlos Gardel in the Municipality of Moron (8,400 inhabitants).3 Beyond the transformation of the first eight neighborhoods, this first phase will strengthen the institutional setting at the provincial level to set the stage for the implementation of similar actions in the rest of the informal settlements in the PBA. 13. The implementation of this ambitious plan requires a strong institutional setup that has the capacity to coordinate the work of different agencies at national, provincial and municipal levels. For this purpose, in January 2018 the PBA established the Provincial Organization for Social and Urban Integration (OPISU), under the Chief of the Cabinet of Ministers. Amongst its functions, OPISU is responsible for carrying out the diagnostic of vulnerable neighborhoods and developing integrated strategies and intervention plans for their improvement. For this purpose, OPISU has a structure that allows it to coordinate the implementation of the plans at the territorial level with the responsible entities at the municipal, provincial and national levels. This model was based on lessons learned from SECISYU. One of the main objectives of this coordination role is to ensure that available programs from the various jurisdictional levels, for example for social and economic development, are easily accessible to residents in the targeted neighborhoods, thus ensuring that they reach the most vulnerable population in a coordinated and efficient way. Table 1 provides a description of the main institutional stakeholders that need to be involved in the design and implementation of the Plan. Table 1. Stakeholder mapping Institution Role Provincial level OPISU Design and coordinate implementation of the overall program and ensure territorial presence. Ministry of Infrastructure and Public Services Design, implement and supervise works. Within the MISP there (MISP) is a unit dedicated to coordination with OPISU. Provincial Housing Institute (IVBA) Design, implement and supervise construction of new housing. Ministry of Economy Manage financial aspects. Min. of Social Development, Min. of Health, Implement existing programs in the selected neighborhoods Min. of Labor, Min. of Production, Min. of and participate in the design of new programs to be Security, Min. of Justice, Min. of Culture, Min. implemented through the Plan. of Science, Technology and Innovation, Secretariat of Human Rights, Secretariat of Culture and Education, etc. Provincial Organization for Sustainable Provide guidance on environmental licensing in collaboration Development (OPDS) with the Municipal Environmental Authority. National level 3Other settlements are Garrote (Tigre); Costa Esperanza, Costa del Lago y 8 de Mayo (San Martín); Puerta del Hierro, San Petersburgo, 17 de marzo y 17 de marzo Bis (La Matanza); La Cava (San Isidro); Porá (Lanús); Libertad y Don Orione Viejo (Almirante Brown). Page 10 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) Secretariat for Social and Urban Integration, Implement existing social programs in the selected Min. of Social Development neighborhoods and support the land titling process, as required. State Asset Management Agency (AABE) Transfer national public owned land and support land titling process, as required. Ministry of Transport Approve transport related interventions, as applicable. Municipal level Municipalities (including areas of planning, Participate in program design and implementation. Provide works, social development, environment and environmental licensing. Deliver solid waste management and economic development) cleaning services. Service providers Water and Sanitation – AySA Design and implement works, or approve technical designs and Electricity – EDENOR and EDESUR support supervision of works if they are implemented by the Gas – GasBan MISP. Assume operation and maintenance of the upgraded services once completed. 14. Among the largest informal settlements in PBA are Villa Itati and Villa Azul, two neighboring settlements located in the Municipality of Quilmes in the southern area of AMBA . Villa Itati has approximately 17,000 inhabitants and has a high risk of flooding and health impacts from environmental degradation. Villa Azul, located across the Southeast Access Highway from Villa Itati, has approximately 3,000 inhabitants. The socioeconomic situation in Villa Itati and Villa Azul is critical – it is estimated that 83 percent of the population has unsatisfied basic needs and the unemployment rate is around 14 percent (almost double the AMBA average). There is no sewerage or drainage network, and access to water and electricity is informal and precarious. OPISU started community mobilization in the neighborhood in March 2018. Ongoing and planned early interventions financed by provincial resources include strengthening government and police presence, carrying out of the census, basic cleaning of “La Cava” and works to reduce flooding in the area, improvement of street cleaning and maintenance services, improvement of the solid waste collection system, improvement of selected micro public spaces, and upgrading of the two main streets. 15. PBA also plans to scale up activities in the vulnerable neighborhood already targeted by the Project – Barrio Carlos Gardel, located in the Municipality of Moron. The housing complex is comprised of 1,174 units distributed in 50 three-story walk-up buildings. In addition, there are 573 informal units built in common areas. There are approximately 8,400 inhabitants. The unemployment rate is 12.1 percent. Over 67 percent of households are considered poor or indigent, based on reported monthly income. OPISU’s presence in the neighborhood began in March 2018. Under the Project, early interventions have begun for the improvement of selected public spaces and houses, as well as the procurement of works for infrastructure improvements and urgent interventions for the improvement of monoblocs (e.g., rooftop improvements and structural interventions). These interventions were identified through a participatory process with the neighbors and codified in the master plan. C. Project Background 16. The Project Development Objectives are to improve housing conditions and access to selected basic services and infrastructure in selected disadvantaged neighborhoods in the Buenos Aires Metropolitan Area (AMBA) and strengthen the institutional capacity for urban management at the metropolitan level. Page 11 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) 17. The Project has five components: (i) Urban and Social Integration of Barrio 31 in CABA (US$194.6 million, of which US$159.6 million IBRD financing); (ii) Habitat Improvement of Disadvantaged Neighborhoods in Greater Buenos Aires (US$36.3 million, of which US$29 million IBRD financing; (iii) Strengthening Institutional Capacities for Metropolitan Urban Management (US$3 million, of which US$3 million IBRD financing); (iv) Project Management and Monitoring – CABA (US$7 million, of which US$7 million IBRD financing); and (v) Project Management and Monitoring – PBA (US$1.12 million, of which US$0.9 million IBRD financing). The Project is financed by two IBRD loans in the amounts of: (i) US$170 million to CABA (IBRD 8706) for the implementation of Components 1, 3 and 4, and (ii) US$30 million to the PBA (IBRD 8707) for the implementation of Components 2 and 5. D. Status of Project Implementation and Performance to Date 18. The Project was approved on February 27, 2017 and both Loan Agreements were signed on December 21, 2017. IBRD Loan No. 8706 to the CABA became effective on April 6, 2018. Project implementation is advancing rapidly under Component 1; contracts for a total of US$110 million for works have been awarded and contracts for a total of US$31 million are under procurement. Most infrastructure works related to water, sanitation, sewerage, street lighting and road paving are expected to be completed by July 2019, and the new electricity network is expected to be finished during 2020, benefitting 43,000 residents. Visible change has already occurred in the areas of the neighborhood where infrastructure has been completed, demonstrating the transformational impact of the Project. New resettlement housing is in an advanced state of construction and resettlement is expected to begin in May 2019 and advance in four phases. Overall, it is anticipated that all works will be completed by 2021. Beyond the Bank-financed Project, the Government of CABA has already inaugurated in the neighborhood a new primary and secondary school, several day care centers, one health center, and two vocational training centers where local residents are already receiving training on a wide range of issues. 19. In addition to interventions in Barrio 31, institutional strengthening activities have also been making progress. Under Component 3, CABA is advancing with the development of the first phase of the metropolitan information system, anticipated to be launched by July 2019. CABA is also contracting a consulting firm to support the definition of a future metropolitan governance system. In addition, it is in the process of updating the urban code in the adjacent municipality of Tres de Febrero with a metropolitan vision, which can serve as a pilot for other municipalities in the AMBA. 20. IBRD Loan No. 8707 to the PBA became effective on March 21, 2018. Planned works under Component 2 in the Carlos Gardel neighborhood are behind the original schedule given the change in the implementing agency from the Ministry of Infrastructure and Public Services (MISP) to the OPISU, which was notified to the Bank in June 2018. However, the pace of implementation has picked up and coordination from OPISU represents a clear value added, given its more integrated approach to the upgrading of the neighborhood than originally planned. Diagnostic works have been carried out and the census was completed in June 2018, both of which have informed the draft master plan. Small early interventions for public space and housing improvements started in late 2018 and the procurement process has started for other contracts for the upgrading of infrastructure and housing monoblocs. The signed contracts and works under procurement account for US$15 million, i.e. 50 percent of the PBA loan amount. A further US$12 million is planned for interventions currently under preparation, such as improvement of housing facades, electricity connections and resettlement. The first resettlement plan, affecting 38 functional units due to the planned infrastructure works, was approved in February 2019. Page 12 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) 21. The Project was restructured in October 2018 to make changes to the implementation arrangements in CABA and PBA. In CABA, it also enabled the construction of resettlement housing as an option for affected persons under Component 1.1, which was not explicitly included in the Project description in the loan. In PBA, it also enabled MISP to procure works under Component 2, which was not included in the original Project design. 22. The PDO rating and overall Implementation Progress (IP) over the past 12 months have been Satisfactory. The Project is in compliance with Bank fiduciary and safeguards policies, as well as legal covenants. The Project’s framework approach to environmental and social risk management has provided flexibility that allowed for adequate consultative processes during implementation to ensure critical ownership of the process from beneficiaries. E. Rationale for Additional Financing 23. The proposed AF intends to scale-up the development impact of a well performing project. It responds to a request from the Government of the PBA to scale up activities currently being implemented under the Project in support of the implementation of its Urban Integration of Vulnerable Neighborhoods Plan, and to strengthen OPISU’s capacity. 24. The choice of an AF, rather than a free-standing project, is based on the fact that the proposed interventions are aligned with the PDO, would be implemented by the same team, and follow the same methodological approach. An AF would also facilitate the promotion of knowledge exchange between OPISU and SECISYU, the agency responsible for the upgrading of Barrio 31 under Component 1. OPISU is already in touch with SECISYU to learn from its experience. The AF will further promote this knowledge exchange, which would also benefit the future scaling-up of OPISU’s program. F. Relationship with the Country Partnership Framework and World Bank Twin Goals 25. The proposed AF is aligned with the World Bank’s twin goals of reducing poverty and increasing shared prosperity. The AF is also fully aligned with the World Bank Group’s Argentina Country Partnership Framework (CPF) FY19-22 (Report number 131971) discussed by the Executive Director on April 25, 2019. The proposed AF would contribute to the CPF’s Focus Area 2 - Addressing Key Institutional Constraints for Better Governance and Service Delivery. It will specifically contribute to Objective 5 - Improving service delivery through enhanced inter-jurisdictional coordination, by strengthening institutional capacity in the PBA to enhance the delivery of basic services in disadvantaged neighborhoods. The AF would support the strengthening of the inter-jurisdictional coordination required for the implementation of multisectoral interventions for urban upgrading, as the decision-making and implementation processes for the delivery of basic services and programs depends on various levels of government. Improvement in coordination will enhance the effectiveness of the interventions and efficiency in the use of resources. The proposed AF is also aligned with, and supports the WBG’s Action Plan on Climate Change, Adaptation and Resilience and the new set of climate targets for the 2021-2025 period. II. DESCRIPTION OF ADDITIONAL FINANCING 26. The proposed AF in the amount of US$100 million to the PBA would support the scaling up of activities under Component 2, by financing activities of the same nature as the original loan. 27. The geographic scope of Component 2 would be expanded to include Villa Itati and Villa Azul in the Municipality of Quilmes. Activities in Barrio Carlos Gardel would also be scaled up. The PBA is Page 13 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) conducting the diagnostic studies and the master plan that will help the definition of other early interventions in Villa Itati and Villa Azul to be designed and implemented under the AF during the first year. These expected early interventions include housing, electricity network, public spaces, and the primary infrastructure network for water and sewerage required to connect the neighborhood. Future physical interventions would include street openings, road paving, improved green space, upgrading of the water, sewer and stormwater drainage systems, improved waste management, housing repairs and upgraded community facilities that will benefit 20,000 residents. 28. Scope of institutional strengthening. The proposed AF would strengthen provincial capacity to implement the Socio-Urban Integration of Informal and Precarious Settlements Plan. It will support integrated planning, test innovative approaches, and identify models of intervention replicable in other informal settlements in the PBA. In addition, the Project aims to promote a more efficient and effective coordination between the municipal, provincial and national government to implement integrated programs in vulnerable areas, in line with the objectives of the Argentina CPF as mentioned in section I.F. above. The PBA will also benefit from institutional strengthening related to Component 3 of the Project - Strengthening institutional capacities for metropolitan urban management . This component includes the development of a metropolitan information system to collect, share and publish data relevant to urban planning and service delivery at the metropolitan level, including informal settlements. It also includes technical assistance to develop CABA’s and PBA’s joint agenda for institutional coordination at the metropolitan level, which could include addressing the proliferation of informal settlements. 29. Revisions to the results framework. The results framework would be revised to disaggregate the indicators among Components 1 and 2, thereby separating the tracking of results within CABA and PBA. In addition, new indicators related to Component 2 would be added, including indicators on institutional strengthening, gender, and land tenure security (see VIII. Results Framework and Monitoring). 30. Climate change co-benefits. Considering that social vulnerability is an important factor contributing to overall climate change vulnerability, measures for improving people’s living conditions and social inclusion that would be supported by the proposed AF would strengthen people’s capacity to adapt to climate change. By supporting new storm water drainage infrastructure, the proposed investments would lead to better flood management and reduce observed and anticipated vulnerabilities caused by heavy rainfall. The AF would also harness energy efficiency (EE) potential to help ensure energy security, reliability and affordability, resulting in GHG emission reductions. In particular, EE standards will be incorporated in the design of all new housing units for resettlement and the housing improvement program will include energy and water saving measures. The improvement of the electricity network and public lighting (including the use of LEDs) are expected to generate EE improvement and reduce transmission and distribution losses. Bank-executed technical funds have been secured from the Energy Sector Management Assistance Program (ESMAP) to support the integration of EE considerations in the design of the previously mentioned measures. Further details on the climate co-benefits design features of the project investments are provided in the project description in Section A. 31. Gender. OPISU conducted a gender gap analysis and identified the following gender inequality issues that would be addressed under the AF: (i) land tenure informality; and (ii) gender-based violence. The AF includes activities focused on strengthening land and housing property tenure for women, mechanisms to incorporate gender in decision making processes and participation, and the incorporation of gender in infrastructure design and community development interventions, including prevention of situational gender-based violence and gender specific social programs related to property rights and Page 14 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) economic opportunities. OPISU is working with the Provincial Under-Secretariat on Gender and Sexual Diversity, and the Municipal Under-Secretariat for Gender and Family to promote women’s participation and prevent issues related to gender-based violence and gender and sexual diversity. Specific workshops have been carried out with women to inform them of the urban master plans, as well as meetings with authorities to address violence and safety issues. Lessons learned from other urban upgrading experiences, including in Barrio 31, will be integrated into the design of the AF activities. 32. Citizen engagement. A participatory approach to planning is a foundational element of OPISU’s activities, and citizen engagement is an integral part of Project design. The integrated approach requires a personalized and continuous relationship between the PBA and the residents to facilitate access to habitat, services and opportunities. Actions will be taken to promote, implement and/or strengthen mechanisms for community participation and consultation on issues related to environmental quality, health, education, citizen security, violence, and employment. Through the implementation of Subcomponent 2.4 the AF would build consensus on the interventions through active community participation, paying special attention to the participation of vulnerable social groups (women, children and adolescents, older adults, and people with disabilities). At the same time, the AF would seek to strengthen existing community participation mechanisms, such as neighborhood forums and councils; promote new channels of participation that articulate the demands of the population; develop activities for the participatory design of interventions necessary for the social and urban integration of the neighborhood; and implement a communication plan. 33. Private sector engagement. It is envisioned that private sector expertise and financing would be leveraged in the AF in two primary ways. First, Subcomponent 2.4 would provide matching grants for local cooperatives to build capacity and expand their businesses. Second, as part of the Bank’s City Resilience Program, OPISU is evaluating options for engaging the private sector in the development of a large swath of greenfield land along the Southeast Access Highway, which divides Villa Itati from Villa Azul (i.e. part of the targeted neighborhood). Models being considered range from direct land disposition to public-private partnership schemes. The resulting proposal for the intervention in this plot of land could be supported through the AF, including the financing of infrastructure as described in paragraph 27 above. 34. Framework approach. Similar to the original loan, the AF follows a framework approach. First, this allows PBA to use the loan proceeds for the preparation of detailed designs for infrastructure works. Moreover, this approach is needed for proper social management of the AF interventions, as the framework approach allows for meaningful community participation in the identification of works and social programs in a complex context: a step-by-step process avoids the creation of false expectations amongst the beneficiaries. While the main interventions under the AF are still being defined as part of the preparation of the master plans, it is important to note there are “no-regret” investments that have been identified and some of them are already taking place with provincial resources. 35. Role of Development Partners. PBA is also requesting financial support from the Inter-American Development Bank (IADB) for the implementation of the Socio-Urban Integration of Informal and Precarious Settlements Plan in other neighborhoods. The IADB and Bank teams are working closely to support OPISU on the definition of overall strategies to be implemented, including the housing improvement program and the grants under Subcomponent 2.4. A. Project Components Page 15 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) 36. Under the AF, the description of Component 2 would be revised and presented as four subcomponents to provide more details of activities to be financed to ensure an integrated approach. In addition, new activities related to institutional strengthening, management, and community development would be included. The revised description would apply both to the original loan and the AF loan. Component 2 – Habitat Improvement of Disadvantaged Neighborhoods in Greater Buenos Aires (US$118.75 million, of which US$94.95 million IBRD) 37. Subcomponent 2. 1: Integrated Planning and Institutional Strengthening (US$3.50 million, of which US$0.70 million IBRD). Carrying out of integrated plans for selected disadvantaged neighborhoods located in Greater Buenos Aires, including, inter alia, the carrying out of: (i) surveys; (ii) land data collection measurements, plans, physical demarcation, and cadastral incorporation of new plans and land uses; (iii) diagnostic studies, including climate change vulnerability assessments; (iv) investment plans; and (v) strategies for scaling up activities across the Province of Buenos Aires. 38. This subcomponent focuses on strengthening integrated planning of socio-urban programs for informal neighborhoods within the public administration. It would finance studies and the preparation of master plans for additional vulnerable neighborhoods. It would also support the evaluation of the Project’s impacts as a means of defining replication strategies for scaling up activities across the PBA. It would also finance capacity building for provincial staff. 39. Subcomponent 2.2: Infrastructure and Habitat (US$91.00 million, of which US$81.45 million IBRD) (i) Carrying out of technical designs of civil works to improve access to, inter alia, water supply, sanitation, storm water drainage, electricity, natural gas, paved roads, street lighting, solid waste management infrastructure, public spaces and community facilities, as well as strategies to reduce overcrowding of housing construction within urban blocks and vulnerability of local population and infrastructure to climate change. (ii) Carrying out of technical designs to improve existing buildings. (iii) Based on the technical designs mentioned in (i) and (ii) herein, if applicable, preparation and consultation of the corresponding resettlement action plans in accordance with the Resettlement Policy Framework (RPF). (iv) Carrying out of technical designs and construction of new housing units in plots of land that are publicly owned, within or adjacent to the selected neighborhood, from which units may be used as compensation in accordance with the resettlement action plans referred to in (iii) herein. (v) Carrying out of selected infrastructure development investments for the housing units mentioned in (iv) herein; (vi) Based on the construction of the houses mentioned in (iv) herein, carrying out the relocation of affected households in the area where the investments referred to in (i) and (ii) above will be carried out, to the housing units mentioned in (iv) herein, in accordance with the relocation criteria set forth in the RPF and the resettlement plan mentioned in (iii) herein. (vii) Carrying out of the basic infrastructure and building improvement investments mentioned in paragraph (i) and (ii) herein. (viii) If applicable, provision of land and compensation in connection with Resettlement mentioned in (iii) herein. Page 16 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) 40. Based on the diagnostics conducted under Subcomponent 2.1, physical interventions would be defined and implemented with the objective of ensuring each citizen’s right to dignified housing, quality public services and public spaces, as well as a better integration of the neighborhood into the city. Interventions would include the retrofitting or construction of public infrastructure networks, including water and sanitation, storm water drainage (including the treatment of parcels of land that are affected by flooding), gas and electricity networks, street opening, road paving, solid waste collection infrastructure and community facilities. It will also include the development of the public infrastructure along the Southeast Access Highway. Works would also improve climate change resilience of local populations and infrastructure and have positive climate change mitigation impacts through the incorporation of climate resilient requirements in retrofitting or construction works and supporting EE measures. The technical designs will incorporate climate resilient design options (e.g., flood risk reducing measures), harness EE potential and consider water saving measures. This Subcomponent would also provide housing solutions for cases in which, as a result of the integrated intervention proposal, there is a need for resettlement. The housing solutions would preferably be located within the neighborhood or its immediate vicinity. New houses would be built taking into account climate vulnerability assessments carried out under Subcomponent 2.1 and requiring that architectural or building changes enable reduction of energy consumption. 41. Subcomponent 2.3: Housing Improvement and Land Tenure Regularization (US$17.13 million, of which US$8.33 million IBRD) (i) Provision of technical assistance for the design of a housing improvement program. (ii) Carrying out of housing improvements and household connections to improved infrastructure systems, including, inter alia, water, sewerage and electricity. (iii) Provision of technical assistance to support the land tenure regularization process including, inter alia, the provision of legal assistance for parcel formalization. 42. This Subcomponent aims to improve the living conditions of households through the expansion, reconstruction and/or improvement of residential units with high deficit and overcrowding, as well as household connections to basic infrastructure. The housing improvement program will reduce energy consumption by implementing solutions to improve the building envelope and thus reduce isolation. In addition, OPISU is implementing a light bulb replacement program to replace older light bulbs with new LED ones. This Subcomponent will also provide technical assistance to support: (i) the design of a financial mechanism, criteria and procedures for the government to provide microcredits for housing improvements with their own resources; and (ii) the land tenure regularization process. 43. Subcomponent 2.4: Social Management and Community Development (US$7.12 million, of which US$4.47 million IBRD) (i) Carrying out of community participation activities and communication campaigns, including inter alia, environmental and climate change awareness campaigns. (ii) Strengthening local community organizations through the carrying out of community-level social development initiatives, including technical assistance, capacity building, and provision of equipment. (iii) Strengthening local community organizations through the carrying out of local economic development initiatives, including technical assistance, capacity building, and provision of equipment. Page 17 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) (iv) Provision of grants to beneficiaries for subprojects to support social and economic development in selected disadvantaged neighborhoods in Greater Buenos Aires. 44. This Subcomponent would support the establishment and/or strengthening of mechanisms at the community level that guarantee the participation of residents in identifying needs and addressing them, and promote inclusion, empowerment, and social and community transformation. This Subcomponent would also finance social and human capital strengthening initiatives. The PBA will design specific subprojects to address development gaps identified in the neighborhood diagnostic in areas including education, health, gender and substance abuse. 45. In addition, this Subcomponent will support the establishment of a technical assistance and grant program to finance initiatives identified and managed by social, civil and religious organizations in the target neighborhoods, which address specific needs and problems contributing to the Project’s objective, including the promotion of socio-economic activities. Technical assistance will be provided by OPISU to registered organizations. It is envisioned that there will be an annual call for proposal and grants would range from US$5,000 to US$50,000 and could be used for technical assistance, purchase of goods, services, and equipment, as well as procurement of small works. The initiatives to be supported may include the provision or improvement of the infrastructure and equipment necessary to expand coverage and guarantee equitable access to social services and socio-productive opportunities. The following topics, among others, may be addressed: training in trades; execution of community managed subprojects; creation and strengthening of spaces for productive local development; prevention and eradication of violence with a focus on violence against women and girls; prevention of addiction; sports promotion; cultural identity; sexual and environmental education; and citizen security 4. A chapter pertaining to the grants program will be included in the Operational Manual as a condition for disbursement of up to US$1,000,000. OPISU is already developing the program criteria. The Borrower will be responsible for financial management related to the grants program. Component 5 – Project Management and Monitoring (US$6.00 million, of which US$4.80 million IBRD) Provision of support for Project management activities performed by PBA, including: (i) the carrying out of audits; (ii) the carrying out of monitoring and evaluation activities; (iii) capacity strengthening of PBA staff; (iv) provision of technical assistance; (v) financing of Operating Costs; (vi) collection of relevant data at specific stages of Project implementation; and (vii) the definition of baselines for the periodic monitoring and evaluation of the Project’s results. B. Project Costs and Proposed Additional Financing by Component Proposed Proposed Total Original Counterpart Additional Additional Project Financing Funding Counterpart Component Financing Financing (US$ (US$ Financing (US$ (US$ million) million) (US$ million) million) million) 4 Subprojects will not include any activities related to the criminal sector, or weapons, lethal equipment, or any other police or military equipment of such nature. The chapter pertaining to the grants program in the Operational Manual will be consistent with the World Bank Staff Guidance Note for World Bank Support for Criminal Justice Activities and include measures to ensure that any such support is unlikely to be politicized or abused, and that any such activities would fall within the Bank's development mandate. Page 18 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) Component 1: Urban and Social 159.60 35.00 0.00 0.00 194.60 Integration of Barrio 31 in CABA Component 2: Habitat Improvement of Disadvantaged Neighborhoods in 29.00 7.30 94.95 23.80 155.05 Greater Buenos Aires Component 3: Strengthening Institutional Capacities for 3.00 0.00 0.00 0.00 3.00 Metropolitan Urban Management Component 4: Project Management 7.00 0.00 0.00 0.00 7.00 and Monitoring – CABA Component 5: Project Management 0.90 0.20 4.80 1.20 7.10 and Monitoring – PBA Front-end Fee 0.50 0.00 0.25 0.00 0.75 Total 200.00 42.50 100.00 25.00 367.50 C. Detailed Cost Table of the Additional Financing Total IBRD Counterpart US$ US$ US$ million million million Component 2 – Habitat Improvement of Disadvantaged 118.75 94.95 23.80 Neighborhoods in Greater Buenos Aires Subcomponent 2.1 Integrated Planning and Institutional 3.50 0.70 2.80 Strengthening Subcomponent 2.2 Infrastructure and Habitat 91.00 81.45 9.55 Subcomponent 2.3 Housing Improvement and Land Regularization 17.13 8.33 8.80 Subcomponent 2.4 Social Management and Community Development 7.12 4.47 2.65 Component 5 – Project Management and Monitoring 6.00 4.80 1.20 Front end fee 0.25 0.25 0.00 TOTAL 125.00 100.00 25.00 D. IBRD Investments in Original Loan and Additional Financing Loan Original Loan AF Loan Total US$ million US$ million US$ million Component 2 – Habitat Improvement of Disadvantaged 29.00 94.95 123.95 Neighborhoods in Greater Buenos Aires Subcomponent 2.1 Integrated Planning and Institutional 1.20 0.70 1.90 Strengthening Subcomponent 2.2 Infrastructure and Habitat 25.50 81.45 106.95 Subcomponent 2.3 Housing Improvement and Land - 8.33 8.33 Regularization Subcomponent 2.4 Social Management and Community 2.30 4.47 6.77 Development Component 5 – Project Management and Monitoring 0.90 4.80 5.70 Front end fee 0.075 0.250 0.325 TOTAL 30.00 100.00 130.00 Page 19 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) E. Implementation Arrangements 46. OPISU will continue to implement Components 2 and 5, and will be responsible for procurement, environmental and social management, reporting, monitoring and evaluation, and will ensure compliance with the World Bank’s policies. The OPISU team currently has about 150 staff responsible for carrying out managerial, technical, territorial and administrative tasks. OPISU will have support from the Ministry of Infrastructure and Public Services (MISP), as sub-executor responsible for procurement and supervision of works. The Provincial Housing Institute (IVBA) within MISP will be responsible for the procurement and contracting of the construction of new houses for the resettlement process. The Provincial Ministry of Economy will continue to be responsible for financial management. 47. OPISU will also coordinate with the corresponding municipalities for the design and implementation of the Project interventions. The municipalities could act as sub-executor agencies to implement small works. For the implementation of the Project in Carlos Gardel, a Municipality Agreement has been signed. A Municipality Agreement with the Municipality of Quilmes will be required prior to the carrying out of any Project activity in a disadvantaged neighborhood in said Municipality. In addition, OPISU will coordinate with other government agencies as described in Table 1. F. Key Outcomes 48. The total number of direct project beneficiaries will almost double from 48,190 (43,190 in CABA and 5,000 in PBA) to 69,890 (43,190 in CABA and 26,700 in PBA) with access to improved infrastructure and services. The primary outcome of the AF would be improved infrastructure and access to services in the targeted neighborhoods of Carlos Gardel, Villa Itati, and Villa Azul. III. KEY RISKS 49. The overall risk to achieving the PDO of the proposed AF is rated Substantial. The main risks and associated risk management measures are summarized below: a. Macroeconomic risk is rated as Substantial. In the context of the IMF Stand-By Arrangement, the GoA has committed to achieve a primary fiscal balance in 2019 and a 1 percent of GDP surplus in 2020. This represents a fiscal effort as high as 3 percentage points of GDP, given the current deficit of 2.7 percent of GDP and the impact of past measures on the 2019 balance (e.g. pensions indexation and tax cuts). Fiscal room will be thus limited at the federal level. Provincial finances, including in the PBA will be affected, since the GoA has agreed with the provinces on the decentralization of expenditure responsibilities for economic subsidies on energy and water to contribute to the adjustment. This higher fiscal burden and the need to meet the Fiscal Responsibility Law mandates (e.g. cap on expenditure real growth), will further reduce the fiscal space of subnational administrations going forward. In this context, there is a risk that the GoA and the PBA decide to postpone the budgetary execution of specific projects to contain public spending. A stable macroeconomic environment and a recovery in economic activity with a positive impact on public revenues will thus be key to achieve fiscal targets without further expenditure adjustments. These risks are mitigated by the financial and technical support from international partners, including from the World Bank and notably through the IMF’s Stand-By Arrangement and the associated targets. Page 20 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) b. Institutional capacity for implementation and sustainability risk is rated as Substantial. OPISU is a new entity comprised of technical staff who are in many cases new to the PBA. Although a structure has been put in place to facilitate institutional coordination, there is a risk that OPISU may have difficulty coordinating with all agencies involved in the implementation of the Plan. Mitigation measures include the requirement to have formal agreements between the PBA and municipal entities, as well as among provincial ministries. In addition, the PBA might not have sufficient qualified staff to effectively manage multiple subprojects in parallel. Mitigation measures include strengthening implementation capacity at the provincial level through the contracting of external consultants. c. Environmental and Social risk is rated as Substantial both for environmental and social concerns. The “without project” situation implies high environmental/health risks to residents of the targeted neighborhoods. The “with project” situation will require carefully planned and conducted environmental clean-up and sound environmental management to prevent and mitigate the potential negative impacts of the subsequent civil works. The main social risks are linked to resettlement needs and the process to manage them. Social risks also include potential interference generated by urban crime and violence (not directly related to the AF, but with influence on its direct environment). The referred risks will be mitigated through the implementation of a robust Environmental and Social Management Framework (ESMF) and Resettlement Policy Framework (RPF) that establish detailed requirements for work-specific Environmental and Social Management Plans and Resettlement Action Plans that will be prepared once the specific detailed designs are defined. d. Stakeholder risk is rated Substantial. The proposed interventions are expected to be carried out under intense oversight from various stakeholders. Moreover, the success of the planned interventions will require adequate coordination and consensus between different actors from the private sector (from the population in the informal settlements to the community leaders and private service providers) and the different levels of government. The PBA is addressing this risk by developing and implementing thorough stakeholder engagement strategies in the selected neighborhoods and through robust grievance redress mechanisms. IV. APPRAISAL SUMMARY A. Economic and Financial (if applicable) Analysis 50. Economic Analysis. The economic evaluation of planned investments under Component 2, in particular Subcomponents 2.2. and 2.3, was carried out using hedonic price models to assess the impact of expected improvements through project interventions on property prices in Villa Itati/Villa Azul and Carlos Gardel. The proposed interventions will also benefit households through improvement in health conditions and living standards and will lead to asset/wealth creation through home ownership. The analysis was conducted using information from similar areas in Gran Buenos Aires. 51. Table 2 below summarizes the results of the economic analysis. The analysis confirms that under all scenarios considered the AF would be economically justified. Based on the estimated economic costs and benefits for a 20-year period and a discount rate of 12 percent, the interventions under Component 2 yield a 23.6 percent return and a net present value (NPV) of US$ 9.19 million. The aggregate effect of Page 21 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) the interventions is estimated to represent an increase in median property prices of 44.6 percent and 97.3 percent in Carlos Gardel and Itati respectively, when compared to the “without project” scenario. Details of the economic analysis are in the Project Files. Table 2. Results of Economic Evaluation and Sensitivity Analysis Scenario ERR Base Scenario 23.6% Cost increase of 15 percent 11.2% Operation and Maintenance Cost increase by 15 percent 8.6% Increased time of Implementation (50 percent increase in the 13.0% time of implementation and execution) Delays in regularization (effective only at Year 4 and a rate of 12.7% 20 percent per year) 52. Financial Analysis. The results of the financial analysis show that the monthly cost for operation and maintenance (O&M) of services and other infrastructure that will become available represents a monthly cost per family of US$29.3, which is equivalent to between 5.4 percent of median household income and 13.8 percent of the monthly income of households in the lowest income quintile . As such, the O&M costs are considered affordable. Details of the financial analysis are in the Project Files . 53. Debt Sustainability. A debt sustainability analysis (DSA) conducted for PBA shows that public debt is sustainable in the medium to long term. A series of tests were conducted to simulate the effect of changes in the current conditions on the debt-to-Gross Provincial Product (GPP) ratio and compare it to the historical performance and baseline assumptions of the key variables. The assumptions used for the baseline scenario are based on information provided by PBA and projections for Argentina used by the World Bank. The DSA shows that an increase in interest rates would not affect PBA’s public debt significantly. Similarly, a deterioration in the primary fiscal balance would also not shift the debt-to-GPP ratios significantly. However, a two-year growth shock would have a significant impact, especially in the medium run, since lower growth both increases the primary deficit and decreases the path of GPP. Since debt denominated in foreign currency represents almost 80 percent of total debt, a 30 percent depreciation (in addition to the nominal depreciation already assumed in the baseline) would have a relevant impact on the level of debt of approximately 6.6 percentage points of GPP. Therefore, PBA’s debt management may face additional challenges in a context of strong pressures on the Argentine peso. Details of the DSA are in the Project Files. B. Technical 54. The identification of investments is based on comprehensive diagnostics of the neighborhoods and master planning processes carried out by OPISU. Diagnostic studies include: (i) data collection on the population and economic activities in the neighborhoods; (ii) analysis of the legal situation of the properties; (iii) technical diagnostic of the infrastructure and buildings; (iv) an urban diagnostic of the neighborhoods and their surroundings; (v) general principles of the comprehensive intervention programs; and (vi) intervention master plans, including an assessment of the intervention scenarios, their programming, budget and financial plans. Based on the above, the AF investments are expected to be technically justified. C. Financial Management Page 22 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) 55. Financial management (FM) and disbursements arrangements for the AF would follow the same arrangements already in place for the original loan. The Ministry of Economy of the PBA will continue to be responsible for the project’s FM and disbursement functions. FM supervision of the arrangements in place at the PBA to support implementation of Components 2 and 5 carried out in October 2018 rated FM performance as satisfactory; there are no overdue project audits. FM monitoring will continue through implementation support missions, review of external audit reports and interim financial reports and ad hoc support, as needed. The Bank will continue disbursements on the basis of advances through a Designated Account. Implementation arrangements, including FM and disbursements for the new small subprojects under Subcomponent 2.4 (iv), are still to be defined. If the FM arrangements are different from the existing arrangements, an assessment of the proposed FM arrangements will be carried out prior to disbursements for Subcomponent 2.4. 56. Retroactive expenditures for eligible payments will be paid up to one year before the date of loan signing, not to exceed 10 percent of the loan proceeds, to be applied to items procured in accordance with applicable Bank procurement procedures. D. Procurement 57. Procurement would be conducted according to the World Bank’s “Procurement Regulations for IPF Borrowers”, issued in July 2016 (and revised in August 2018), for the supply of goods, works, non- consulting and consulting services under the Project. The World Bank's Standard Procurement Documents will govern the procurement of World Bank-financed Open International Competitive Procurement. For procurement involving National Open Competitive Procurement, the Borrower will use Standard Procurement Documents acceptable to the World Bank; these will be included in the Operational Manual. 58. PBA updated the Project Procurement Strategy for Development (PPSD) developed for the original loan with close support from the Bank. Based on preliminary analysis, it is envisaged that the financing would cover technical assistance for project execution, supervision, and low value civil works contracts that would be carried out under a national market approach. In this context, the PPSD document: (i) assesses the current operating context and its potential impact on procurement; (ii) assesses the implementing agency’s capacity; (iii) analyses alternatives and proposes procurement arrangements for key activities that might have an impact of the implementation of civil works contracts; and (iv) provides justification for any particular procurement arrangement different from those mentioned above. 59. A procurement capacity assessment of OPISU, MISP, and IVBA was carried out by the Bank, and the overall project risk for procurement is rated Moderate. E. Social (including Safeguards) 60. The social risk of the upgrading activities in Villa Itati and Villa Azul is Substantial. The main social impacts of the AF are expected to be positive since the investments will not only enhance housing and public infrastructure but will also promote social and community development under Subcomponent 2.4 and urban integration of the neighborhoods with the rest of the municipality and the larger Metropolitan Area, thus generating new development opportunities for their inhabitants. The main social risks are linked to resettlement needs and the processes to manage them, including, inter alia: (i) potential negative impact of resettlement on the quality of life of the Project Affected People (PAP); (ii) delays in the execution of infrastructure works and/or in the implementation of the Resettlement Action Plans (RAP); and (iii) potential negative impacts on livelihoods such as the need to replace income-generation Page 23 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) activities for certain vulnerable groups (e.g., waste pickers) after the neighborhood transformation. The RPF identifies measures to avoid, minimize, mitigate or compensate the risks, and these measures will be implemented through specific actions included in the RAPs that will be prepared. Social risks also include potential interference generated by urban crime and violence (not directly related to the AF, but with influence on its direct environment). The AF does not trigger OP 4.10 since there are no Indigenous Peoples present in - or with collective attachment to - the implementation area. Based on the World Bank’s Gender Based Violence (GBV) Risk Rating tool for pipeline projects, the risk for the AF is rated as Low5; however, the AF would incorporate gender as a key theme for intervention to address the identified gaps. 61. OPISU has a robust technical team for environmental and social risk management. Further, the Environmental and Social Management Framework (ESMF) includes a related capacity building plan and an adequate budget for the ESMF implementation. In addition, OPISU has strong interinstitutional links with entities that are focused on environmental and social risk management at the provincial, municipal and national levels. 62. The main instruments prepared for the environmental and social management of the AF are the updated ESMF and the Resettlement Policy Framework (RPF). OPISU has identified the most significant works needed in the targeted neighborhoods in the short, medium and long term, and continues receiving key contributions from neighbors and other stakeholders through a participatory consultation process in Villa Itati and Villa Azul to finalize the identification of infrastructure works. The identified works will be validated once the diagnosis phase and the preparation of the master plans are concluded. 6 The Bank has supported the preparation of the master plans through the original loan and the AF will support the preparation of the detailed designs of the selected infrastructure works and the bidding process. OPISU will prepare work-specific environmental and social assessments, Environmental and Social Management Plans (ESMPs), and RAPs along with the detailed designs for selected infrastructure works. The use of frameworks enables meaningful community participation in the identification of works and social programs in a complex context. 63. Along with the ESMF, OPISU has updated and extended the Social Assessment and the RPF originally prepared for Component 2 to cover Villa Itati and Villa Azul. In addition, it has prepared a RAP for early intervention works to reduce flooding in the “La Cava” area of Villa Itati, which require the resettlement of 19 households. OP 4.12 does not apply to the early intervention works in La Cava, since these works are not being supported by any of the components under the Project, nor are they necessary to achieve the objectives of the Project. Nevertheless, OPISU prepared the RAP to be consistent with OP 4.12 and the RAP has adopted the criteria established in the RPF to ensure a common approach to all physical and/or economic displacement processes in the neighborhoods. The safeguards instruments were disclosed in-country and at the Bank external website on February 13 and 15, 2019, respectively. OPISU concluded the consultations in February 2019; these did not raise the need to make any adjustments to the instruments. The Executive Summary of the ESMF was sent to SECPO on February 15, 5 The tool focuses on the assessment on legal framework, institutional arrangements and main characteristics of infrastructure works (e.g. to define if they would require high levels of labor influx). The risk is Low because Argentina has a strong legal framework and formal institutions, and the AF will not finance major civil works. Nevertheless, GBV is a current challenge in Argentina and is present in vulnerable neighborhoods. For that reason, the Government is very active on GBV prevention and the Project will finance actions that will support this strategy. 6 A framework-approach to environmental and social risk management applies as the loan is needed to finance the preparation of the bidding documents and the design of the executive projects. Page 24 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) 2019, and the draft ESMF and RPF were disclosed in-country and on the Bank’s external website February 13 and 15, 2019 respectively. The consulted, final ESMF and RPF were disclosed in-country on April 1, 2019 and by the Bank on April 3 and 4, 2019 respectively. F. Environment (including Safeguards) 64. The environmental risk of the AF is Substantial as described under Section III on Key Risks. AF interventions are considered to be of high environmental value for their direct beneficiaries, as the baseline situation in the targeted neighborhoods implies high environmental/health risks. Preparatory clean-up will be needed across the neighborhoods and the environmental and social management will need to be robust to prevent and mitigate potential negative impacts of the civil works, given the complexity of the overall context. 65. The ESMF, which complies with Bank requirements, includes an assessment of the principal environmental and social impacts and identifies the main mitigation measures and good practices for the identified civil works. It includes a strong ESMP that covers aspects applicable to all potential infrastructure works and will serve as the basis for work-specific ESMPs. The ESMF describes the applicable institutional responsibilities and arrangements, and the environmental and social management requirements at different stages of preparation and implementation. OPISU will use a Form for Project Evaluation included in Annex 8 of the ESMF to identify work-specific environmental and social impacts and identify the respective mitigation/management measures as part of the preparation of the environmental and social technical specifications of the bidding documents once the infrastructure works are selected and their detailed designs prepared. Each contractor will need to prepare an ESMP (adjusted and detailed for the construction phase) based on the ESMP in the ESMF, including the applicable timeline, responsibilities and budget. 66. To comply with national regulations and using the ESMF as the basis, OPISU will prepare a Strategic Environmental and Social Assessment and present it to the applicable environmental authority at the municipal level, along the lines of the successful and cost-efficient example and lessons learned in Barrio 31. In case the municipal environmental authority requires a specific Environmental and Social Impact Assessment for any of the civil works, the ESMF includes the necessary Terms of Reference. 67. Integrated pest management is needed, particularly for the elimination of the rat populations in the targeted neighborhoods. OPISU contracted a qualified firm to prepare and implement an Integrated Pest Management Plan (IPMP) as part of the early intervention works in compliance with the principles of OP 4.09 on Pest Management. The applicable programs are included in the ESMP in the ESMF. 68. The OPISU team includes a qualified Environmental Specialist with prior experience in implementing a Bank-financed project and a Director for Social Development. 69. The AF will include the new requirements under the Environmental and Social Incident Response Toolkit (ESIRT), including the need for the Borrower to timely report any incident to the Bank. G. Other Safeguard Policies (if applicable) 70. The AF triggers OP/BP 7.50 on Projects on International Waterways. OP/BP 7.50 is triggered since some of interventions involve a river (Rio de la Plata) that flows through two states (Argentina and Uruguay). An exception on notification requirements, as provided for in paragraph 7(a) of OP 7.50, was approved by the Regional Vice President on March 6, 2019. Page 25 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) V. WORLD BANK GRIEVANCE REDRESS 71. Communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may submit complaints to existing project-level grievance redress mechanisms or the WB’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the WB’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of WB non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service . For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org Page 26 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) VI SUMMARY TABLE OF CHANGES Changed Not Changed Implementing Agency ✔ Results Framework ✔ Components and Cost ✔ Project's Development Objectives ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ VII DETAILED CHANGE(S) IMPLEMENTING AGENCY Implementing Agency Name Type Action Ministry of Infrastructure and Public Services, Subnational/Local No Change Province of Buenos Aires Government Secretariat for Social and Urban Integration Subnational/Local No Change (SECISYU), Autonomous City of Buenos Aires Government Provincial Organization for Social and Urban Subnational/Local No Change Integration (OPISU), Province of Buenos Aires Government Ministry of Economy and Finance, Autonomous Subnational/Local No Change City of Buenos Aires Government Page 27 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) General Secretariat, Autonomous City of Subnational/Local No Change Buenos Aires Government Ministry of Economy, Province of Buenos Aires Subnational/Local No Change Government Province of Buenos Aires Housing Institute Subnational/Local New Government COMPONENTS Current Component Name Current Cost Action Proposed Component Proposed Cost (US$, (US$, millions) Name millions) Urban and social integration 194.57 Urban and social 194.57 of Barrio 31 in CABA integration of Barrio 31 in CABA Habitat improvement of 36.30 Revised Habitat improvement of 155.05 disadvantaged disadvantaged neighborhoods in Greater neighborhoods in Buenos Aires Greater Buenos Aires Strenghtening institutional 3.00 Strenghtening 3.00 capacities for metropolitan institutional capacities urban management for metropolitan urban management Project Management and 7.00 Project Management 7.00 Monitoring – CABA and Monitoring – CABA Project Management and 1.12 Revised Project Management 7.12 Monitoring – PBA and Monitoring – PBA Front End Fees 0.50 Front End Fees 0.50 TOTAL 242.49 367.24 Expected Disbursements (in US$) DISBURSTBL Fiscal Year Annual Cumulative 2017 498,000.00 498,000.00 2018 15,200,000.00 15,698,000.00 2019 70,000,000.00 85,698,000.00 2020 40,000,000.00 125,698,000.00 2021 40,000,000.00 165,698,000.00 2022 40,000,000.00 205,698,000.00 Page 28 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) 2023 40,000,000.00 245,698,000.00 2024 40,000,000.00 285,698,000.00 2025 14,302,000.00 300,000,000.00 SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Latest ISR Rating Current Rating Political and Governance  Moderate  Moderate Macroeconomic  Moderate  Substantial Sector Strategies and Policies  Moderate  Moderate Technical Design of Project or Program  Substantial  Moderate Institutional Capacity for Implementation and  Moderate  Substantial Sustainability Fiduciary  Moderate  Moderate Environment and Social  Substantial  Substantial Stakeholders  Substantial  Substantial Other Overall  Substantial  Substantial LEGAL COVENANTS2 LEGAL COVENANTS – Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) Sections and Description Schedule 2 – Section I.C.5 of Loan Agreement with PBA The Borrower shall promptly notify the Bank of any incident or accident related to or having an impact on the Project which has, or is likely to have, a significant adverse effect on the environment, the affected communities, the public or workers, including, explosions, spills, any workplace accidents that result in death, serious or multiple injury, pollution, any violent labor unrest, any dispute between the Borrower or security forces (assigned to protect the Project) and local communities, any case of gender-based violence and violence against minors, or any incidents in or related to international waterways. The notification shall include sufficient detail regarding the incident or accident, indicating any measures that have been taken or are planned to be taken to address it, if any (including information provided by any contractor and supervising entity), all in accordance with the Operational Manual. Schedule 2 – Section I.D.1 of Loan Agreement with PBA For purposes of carrying out the Subprojects under Part 1.4 (iv) of the Project, and prior to the carrying out of any activity under said Part of the Project, the Borrower, through OPISU, shall: (i) select the pertinent Beneficiary in accordance with clear eligibility criteria acceptable to the Bank and set forth in the Operational Manual; and (ii) Page 29 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) thereafter enter into an agreement with said Beneficiary (the “Grant Agreement”) on terms and conditions acceptable to the Bank, detailing, inter alia: (A) the Grant amount, activities, and expenditures to be financed by said Grant; (B) the right of the Borrower, through OPISU, to suspend or terminate the right of said Beneficiary to receive or use the proceeds of the Grant, and/or to obligate said Beneficiary to refund all or any part of the amount of the Grant then withdrawn, upon the Beneficiary’s failure to perform any of its respective obligations under the relevant Grant Agreement; and (C) the obligation of the Beneficiary to carry out the pertinent Subproject with due diligence and efficiency and in accordance with sound technical, economic, financial, managerial, environmental and social standards and practices satisfactory to the Bank, including compliance with the Anti-Corruption Guidelines, the Procurement Regulations, and the provisions set forth in Section C of this Schedule and in the Operational Manual, as applicable, and in a manner acceptable to the Bank; and (D) the Bank’s and the Borrower’s right to require audits of the Beneficiary’s records and accounts. Conditions Type Description Disbursement Schedule 2 – Section III.B.1 of Loan Agreement with PBA No withdrawal shall be made: (a) for payments made prior to the Signature Date, except that withdrawals up to an aggregate amount not to exceed ten million Dollars ($10,000,000) may be made for payments made prior to this date but on or after May 17, 2019 (but in no case more than one year from the Signature Date); or (b) under Category 2, unless the Operational Manual has been updated to include the rules and procedures eligibility criteria for selection of Beneficiaries and Subprojects, and the detailed rules and procedures for identification, registration and selection of eligible Beneficiaries to receive Grants, all in form and substance satisfactory to the Bank. Page 30 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) VIII. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY: Argentina RESULT_NO_PDO Metropolitan Buenos Aires Urban Transformation Project Additional Financing Project Development Objective(s) The Project Development Objectives are to improve housing conditions and access to selected basic services and infrastructure in selected disadvantaged neighborhoods in the Buenos Aires Metropolitan Area (AMBA), and strengthen the institutional capacity for urban management at the metropolitan level. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_T BL_ PD O Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 Number of people (of which females) provided with improved access to selected basic services. Number of people (of which females) provided with 0.00 0.00 0.00 1,400.00 48,590.00 60,790.00 65,390.00 69,890.00 69,890.00 69,890.00 improved access to selected basic services. (Number) Action: This indicator has been Revised Percentage of females 0.00 0.00 0.00 51.00 51.00 51.00 51.00 51.00 51.00 51.00 (Percentage) Number of people (of which females) provided with improved housing. Number of people (of which females) 0.00 0.00 0.00 0.00 0.00 0.00 4,200.00 4,200.00 4,200.00 4,200.00 Page 31 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) RESULT_FRAME_T BL_ PD O Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 provided with improved housing. (Number) Action: This indicator has been Revised Percentage of females 0.00 0.00 0.00 51.00 51.00 51.00 51.00 51.00 51.00 51.00 (Percentage) Action: This indicator has been Revised Metropolitan Information System (AMBA-DATA) developed and operational. Metropolitan Information System Operational for No System Under- Operational for Operational for Operational for Operational for (AMBA-DATA) No System internal use developed and Development external use external use external use external use operational. (Text) Action: This indicator has been Revised PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 Urban and social integration of Barrio 31 in CABA Direct project 0.00 0.00 0.00 1,400.00 41,790.00 43,190.00 43,190.00 43,190.00 beneficiaries Page 32 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 (Number) Action: This indicator has been Revised Female beneficiaries 0.00 0.00 51.00 51.00 51.00 51.00 51.00 51.00 (Percentage) Number of people provided with improved housing 0.00 0.00 0.00 0.00 0.00 0.00 4,200.00 4,200.00 with property title. (Number) Action: This indicator has been Revised Percentage of women given the option to exercise their right to 0.00 0.00 0.00 0.00 0.00 100.00 100.00 100.00 have a property title. (Percentage) Action: This indicator has been Revised Number of people in urban areas provided with access to 0.00 0.00 0.00 1,400.00 41,790.00 43,190.00 43,190.00 43,190.00 Improved Water Sources under the project (Number) Action: This indicator has been Revised Number of people in urban areas provided 0.00 0.00 0.00 1,400.00 41,790.00 43,190.00 43,190.00 43,190.00 with access to Page 33 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 Improved Sanitation under the project (Number) Action: This indicator has been Revised Roads rehabilitated, Non-rural 0.00 0.00 3.00 6.00 6.00 6.00 6.00 6.00 (Kilometers) Action: This indicator has been Revised Number of people in urban areas provided with access to electricity under the 0.00 0.00 0.00 1,400.00 41,790.00 43,190.00 43,190.00 43,190.00 project by household connections (Number) Action: This indicator has been Revised Number of people in urban areas provided with improved storm 0.00 0.00 0.00 1,400.00 41,790.00 43,190.00 43,190.00 43,190.00 water drainage (Number) Action: This indicator has been Revised Number of people in urban areas provided 0.00 0.00 0.00 1,400.00 41,790.00 43,190.00 43,190.00 43,190.00 with access to public lighting (Number) Action: This indicator has been Revised Page 34 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 Number of participatory sessions carried out related to the improvement of 0.00 15.00 40.00 50.00 50.00 50.00 50.00 50.00 housing conditions under sub- component 1.2 of the Project. (Number) Action: This indicator has been Revised Habitat Improvement of Disadvantaged Neighborhoods in Greater Buenos Aires (Action: This Component is New) Direct project beneficiaries 0.00 0.00 0.00 0.00 6,800.00 17,600.00 22,200.00 26,700.00 26,700.00 26,700.00 (Number) Action: This indicator is New Female beneficiaries 0.00 51.00 51.00 51.00 51.00 51.00 51.00 (Percentage) Action: This indicator is New Percentage of households in which a woman is registered as owner or co-owner 0.00 0.00 0.00 0.00 0.00 55.00 55.00 55.00 55.00 55.00 on the title at the beginning of the land regularization process (Percentage) Action: This indicator is New Page 35 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 Number of people in urban areas provided with access to Improved Water 0.00 0.00 0.00 0.00 3,300.00 7,400.00 14,800.00 19,300.00 23,900.00 23,900.00 Sources under the project (Number) Action: This indicator is New Number of people in urban areas provided with access to Improved Sanitation 0.00 0.00 0.00 0.00 3,300.00 7,400.00 14,800.00 19,300.00 23,900.00 23,900.00 under the project (Number) Action: This indicator is New Roads rehabilitated, Non-rural 0.00 0.00 0.00 0.00 1.70 5.00 11.70 15.90 20.00 20.00 (Kilometers) Action: This indicator is New Number of people in urban areas provided with access to electricity under the 0.00 0.00 0.00 0.00 560.00 4,100.00 9,400.00 13,200.00 18,300.00 18,300.00 project by household connections (Number) Action: This indicator is New Number of people in urban areas provided 0.00 0.00 0.00 0.00 3,300.00 7,400.00 14,800.00 19,300.00 23,900.00 23,900.00 Page 36 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 with improved storm water drainage (Number) Action: This indicator is New Number of people in urban areas provided 0.00 0.00 0.00 0.00 5,000.00 10,300.00 17,600.00 22,200.00 26,700.00 26,700.00 with access to public lighting (Number) Action: This indicator is New Percentage of subproject designs validated through citizen participation 0.00 0.00 0.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 activities (Percentage) Action: This indicator is New Guidelines for the replication of intervention model in 0.00 0.00 0.00 0.00 0.00 0.00 1.00 1.00 2.00 2.00 neighborhoods with similar characteristics developed (Number) Action: This indicator is New Number of parcels benefitted under the project with 0.00 0.00 0.00 0.00 0.00 700.00 2,500.00 3,300.00 4,480.00 4,480.00 increased tenure security (Number) Page 37 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) RESULT_FRAME_T BL_ IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 Action: This indicator is New Percentage of complaints responded to or 0.00 0.00 0.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 resolved within the standard response period (Percentage) Action: This indicator is New Percentage of women who feel insecure in 28.00 28.00 28.00 28.00 28.00 26.00 23.00 23.00 21.00 21.00 the neighborhood (Percentage) Action: This indicator is New IO Table SPACE Monitoring & Evaluation Plan: PDO Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection This indicator measures the number of people in disadvantaged Number of people (of which females) Project neighborhoods that have Semi-annual SECISYU/OPISU provided with improved access to reports been provided with access selected basic services. and/or improved access to at least one or more basic services under Page 38 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) Components 1 and 2 of the Project, including water supply, sanitation, public lighting, paved roads, and electricity. The number of neighborhood residents provided with access to two or more basic services is only computed once. Project Semi-annual SECISYU/OPISU Percentage of females reports This indicator measures the number of people that Project Number of people (of which females) have been assigned to new Semi-annual SECISYU reports provided with improved housing. housing units in Barrio 31 in the YPF plot under Sub- component 1.2. Project Semi-annual SECISYU Percentage of females reports This indicator measures the success of the initiatives supported through Component 3, on strengthening the Project Metropolitan Information System (AMBA- Semi-annual SECISYU/SG institutional capacities of reports DATA) developed and operational. CABA and PBA for metropolitan urban management. The baseline is set as “No System.” Intermediate targets were Page 39 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) proposed to reflect the evolving development phases of AMBA-DATA, from the earlier diagnostic and definition of the general architecture and data model phase to the latter development of the architecture, functionalities and sustainability aspects of the system. AMBA-DATA is to be launched and operational initially for internal use. The system will be considered fully operational when made available for external users, at the end of the Project. ME PDO Table SPACE Monitoring & Evaluation Plan: Intermediate Results Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Direct beneficiaries are people or groups who directly derive benefits Semi- Project from an intervention (i.e., SECISYU Direct project beneficiaries annual reports children who benefit from an immunization program; families that have a new piped water connection). Page 40 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) Please note that this indicator requires supplemental information. Supplemental Value: Female beneficiaries (percentage). Based on the assessment and definition of direct project beneficiaries, specify what proportion of the direct project beneficiaries are female. This indicator is calculated as a percentage. Semi- Project SECISYU Female beneficiaries annual reports This indicator measures the number of people in Barrio 31 that were assigned to Semi- Project Number of people provided with SECISYU new housing with a annual reports improved housing with property title. property title in the YPF plot under Sub-component 1.2. This indicator measures the percentage of women assigned to the new Percentage of women given the option to housing units in the YPF Semi- Project SECISYU exercise their right to have a property plot under Sub-component annual reports title. 1.2 that were informed about their right and given the option to have a property title. The indicator Page 41 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) does not measure the percentage of women with actual property titles because the right to titling will not be presented as an obligation, but rather as an option. An accessible redress system will be in place to receive and handle complaints and monitor cases. Unresolved cases will be deducted from this indicator. This indicator measures the actual number of people in urban areas who benefited from improved water supply services that have been constructed under the project. Guidance on "improved water sources": Number of people in urban areas Semi- Project Improved water sources SECISYU provided with access to Improved Water annual reports include piped household Sources under the project connections (house or yard connections), public standpipe, boreholes, protected dug well, protected spring and rainwater collection. Hence, "Improved Water Sources" do not include, Page 42 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) inter alia, water provided through tanker truck, or vendor, unprotected well, unprotected spring, surface water (river, pond, dam, lake, stream, irrigation channel), or bottled water. The definition of what is considered an ‘improved water source' follows the UNICEF-WHO Joint Monitoring Program definition. Note that "Improved Water Sources" does not refer to the question of new versus rehabilitated water sources, but is the standard definition used to track progress on the Millennium Development Goals. Guidance on people with access: The data on the number of people provided with access can be estimated by TTLs by multiplying i) the actual number of piped connections with an estimate of the number of people per household Page 43 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) connection; and/or ii) the actual number of community water points with an estimate of the number of people per community water point. The assumptions made regarding number of people per connection made should be carefully documented in the ‘comments' section of the indicator when data is entered in the ISR. Guidance on urban classification: The classification should follow the official definition used in the country. This indicator measures the actual number of people in urban areas who benefited from improved sanitation facilities that have been Number of people in urban areas constructed under the Semi- Project SECISYU provided with access to Improved project. Guidance on annual reports Sanitation under the project "Improved Sanitation Facilities": Improved sanitation facilities include flush/pour-flush into a piped sewer system, septic tank or pit latrine, VIP Page 44 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) latrine, pit latrine with slab, composting toilet. Hence, "improved sanitation facilities" do not include, inter alia, flush/pour-flush toilets to elsewhere (i.e., not to a sewer network, septic tank or pit latrine), bucket, hanging toilet/latrine, public facility, a shared improved facility, or no facilities, bush or field (i.e. open defecation).The definition of what is considered an ‘improved sanitation facility' follows the UNICEF- WHO Joint Monitoring Program definition. Note that "improved sanitation facilities" do not refer to the question of new versus rehabilitated sanitation facilities, but is the standard definition used to track progress on the Millennium Development Goals. Guidance on people with access: The data about the number of people with access can be estimated by TTLs by Page 45 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) multiplying the actual number of improved sanitation facilities with an estimate of the number of people per household using the improved sanitation facility. The assumptions made regarding number of people per sanitation facility should be carefully documented in the ‘comments' section of the indicator when data is entered in the ISR. Guidance on urban classification: The classification should follow the official definition used in the country. Kilometers of all non-rural roads reopened to motorized traffic, rehabilitated, or upgraded under the project. Non- rural roads are roads Semi- Project SECISYU Roads rehabilitated, Non-rural functionally classified in annual reports various countries as Trunk or Primary, Secondary or Link roads, or sometimes Tertiary roads. Typically, non-rural roads connect urban Page 46 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) centers/towns/settlements of more than 5,000 inhabitants to each other or to higher classes of road, market towns and urban centers. Urban roads are included in nonrural roads. Access to electricity is consistent with the definition used in the World Bank energy sector. This indicator measures the number of people in urban areas that have received an electricity connection under the project via new connections aimed at connecting households. It Number of people in urban areas is expected that the Semi- Project SECISYU provided with access to electricity under baseline value for this annual reports the project by household connections indicator will be zero. Guidance on people with electricity connection: The data on the number of people provided with electricity connections can be approximated by multiplying the actual number of household connections with an estimate of the average household size. Guidance Page 47 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) on type of connection: In urban areas access will be provided through grid connections. A grid connection is when electricity is being supplied by a distribution network served by the country or region's interconnected transmission system. Guidance on urban classification: The classification should follow the official definition used in the country. This indicator measures the cumulative number of people in urban areas that were provided new drainage services in an area that has not had these Number of people in urban areas Semi- Project services before, as well as SECISYU provided with improved storm water annual reports with the upgrading, drainage rehabilitation, and/or modernization of drainage services in an area with existing drainage services, constructed under the project. This indicator measures the Semi- Project Number of people in urban areas SECISYU cumulative number of annual reports provided with access to public lighting people in urban areas that Page 48 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) were provided new and/or improved public lighting infrastructure under the project. The target for this indicator is lower than for other services due to the estimated population of 2000 people already benefitting from this service. This indicator measures the cumulative number of participatory sessions related to the resettlement process of the people that currently reside under the Illia Highway. The sessions will be carried out before, during and after the Number of participatory sessions carried resettlement process. The Semi- Project out related to the improvement of SECISYU government of CABA has annual reports housing conditions under sub-component various types of 1.2 of the Project. participatory sessions; according to the approach and methodology, these may be informative, consultative or decisive. On average, 20 people participate in each session, so a total of 1,000 people are expected to participate. Page 49 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) Direct beneficiaries are people or groups who directly derive benefits from an intervention (i.e., children who benefit from an immunization program; families that have a new piped water connection). Please note that this indicator requires Semi- Project OPISU Direct project beneficiaries supplemental information. annual reports Supplemental Value: Female beneficiaries (percentage). Based on the assessment and definition of direct project beneficiaries, specify what proportion of the direct project beneficiaries are female. This indicator is calculated as a percentage. Semi- Project OPISU Female beneficiaries annual reports This indicator measures the percentage of households Percentage of households in which a in which at least one Semi- Project woman is registered as owner or co- woman appears as owner OPISU annual reports owner on the title at the beginning of the or co-owner at the land regularization process beginning of the process of land tenure regularization , with respect to the total Page 50 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) number of dwellings that start the process in which there is at least one woman over 18 years of age. This indicator measures the actual number of people in urban areas who benefited from improved water supply services that have been constructed under the project. Guidance on "improved water sources": Improved water sources include piped household connections (house or yard connections), public Number of people in urban areas standpipe, boreholes, Semi- Project OPISU/MISP provided with access to Improved Water protected dug well, annual reports Sources under the project protected spring and rainwater collection. Hence, "Improved Water Sources" do not include, inter alia, water provided through tanker truck, or vendor, unprotected well, unprotected spring, surface water (river, pond, dam, lake, stream, irrigation channel), or bottled water. The definition of what is Page 51 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) considered an ‘improved water source' follows the UNICEF-WHO Joint Monitoring Program definition. Note that "Improved Water Sources" does not refer to the question of new versus rehabilitated water sources, but is the standard definition used to track progress on the Millennium Development Goals. Guidance on people with access: The data on the number of people provided with access can be estimated by TTLs by multiplying i) the actual number of piped connections with an estimate of the number of people per household connection; and/or ii) the actual number of community water points with an estimate of the number of people per community water point. The assumptions made regarding number of people per connection Page 52 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) made should be carefully documented in the ‘comments' section of the indicator when data is entered in the ISR. Guidance on urban classification: The classification should follow the official definition used in the country. This indicator measures the actual number of people in urban areas who benefited from improved sanitation facilities that have been constructed under the project. Guidance on "Improved Sanitation Facilities": Improved sanitation facilities include Number of people in urban areas Semi- Project flush/pour-flush into a OPISU/MISP provided with access to Improved annual reports piped sewer system, septic Sanitation under the project tank or pit latrine, VIP latrine, pit latrine with slab, composting toilet. Hence, "improved sanitation facilities" do not include, inter alia, flush/pour-flush toilets to elsewhere (i.e., not to a sewer network, septic tank or pit latrine), bucket, hanging Page 53 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) toilet/latrine, public facility, a shared improved facility, or no facilities, bush or field (i.e. open defecation).The definition of what is considered an ‘improved sanitation facility' follows the UNICEF- WHO Joint Monitoring Program definition. Note that "improved sanitation facilities" do not refer to the question of new versus rehabilitated sanitation facilities, but is the standard definition used to track progress on the Millennium Development Goals. Guidance on people with access: The data about the number of people with access can be estimated by TTLs by multiplying the actual number of improved sanitation facilities with an estimate of the number of people per household using the improved sanitation facility. The assumptions made regarding number of people per sanitation Page 54 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) facility should be carefully documented in the ‘comments' section of the indicator when data is entered in the ISR. Guidance on urban classification: The classification should follow the official definition used in the country. Kilometers of all non-rural roads reopened to motorized traffic, rehabilitated, or upgraded under the project. Non- rural roads are roads functionally classified in various countries as Trunk or Primary, Secondary or Semi- Project Link roads, or sometimes OPISU/MISP Roads rehabilitated, Non-rural annual reports Tertiary roads. Typically, non-rural roads connect urban centers/towns/settlements of more than 5,000 inhabitants to each other or to higher classes of road, market towns and urban centers. Urban roads are included in nonrural roads. Number of people in urban areas Access to electricity is Semi- Project OPISU/MISP provided with access to electricity under consistent with the annual reports Page 55 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) the project by household connections definition used in the World Bank energy sector. This indicator measures the number of people in urban areas that have received an electricity connection under the project via new connections aimed at connecting households. It is expected that the baseline value for this indicator will be zero. Guidance on people with electricity connection: The data on the number of people provided with electricity connections can be approximated by multiplying the actual number of household connections with an estimate of the average household size. Guidance on type of connection: In urban areas access will be provided through grid connections. A grid connection is when electricity is being supplied by a distribution network served by the country or region's interconnected Page 56 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) transmission system. Guidance on urban classification: The classification should follow the official definition used in the country. This indicator measures the cumulative number of people in urban areas that were provided new drainage services in an area that has not had these Number of people in urban areas Semi- Project services before, as well as OPISU/MISP provided with improved storm water annual reports with the upgrading, drainage rehabilitation, and/or modernization of drainage services in an area with existing drainage services, constructed under the project. This indicator measures the cumulative number of people in urban areas that were provided new and/or improved public lighting Semi- Project Number of people in urban areas infrastructure under the OPISU/MISP annual reports provided with access to public lighting project. The target for this indicator is lower than for other services due to the estimated population of 2000 people already benefitting from this Page 57 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) service. This indicator measures the percentage of subprojects included in the Percentage of subproject designs neighborhood’s Urban Plan Semi- Project OPISU validated through citizen participation for which the designs were annual reports activities consulted and validated with the local community through participatory sessions. This indicator measures the number of documents developed and disseminated through workshops and presentations by the executing agency establishing replicable Guidelines for the replication of Semi- Project guidelines and strategies OPISU intervention model in neighborhoods with annual reports for future social and urban similar characteristics developed integration interventions in vulnerable neighborhoods with characteristics similar to those included in the Project. Said guides will collect the lessons learned from the interventions of this Project. This indicator measures the OPISU reports OPISU/ Provincial Number of parcels benefitted under the Annual number of plots included in and plan Housing Institute project with increased tenure security Villa Itatí and Villa Azul, approval Page 58 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) which initiate a process of records land tenure regularization ("expedientes based on the establishment de aprobación of a plan approval record de plano"). ("expediente de aprobación de plano"). In the case of the Carlos Gardel housing complex, the indicator measures the functional units that make up the monoblocks which are considered sub-parcels and will be subject to regularization. The value corresponding to Itatí and Azul represent 60% of the identified plots, given that the future interventions for opening streets will affect the total of plots in conditions to initiate the process of land tenure regularization . This indicator measures the percentage of complaints related to the Project Percentage of complaints responded to or (requests for information, Semi- Project Report OPISU resolved within the standard response concerns, and/or annual period complaints) received through the Project GRM mechanism that are responded to or resolved Page 59 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) within the standard response period. This indicator measures the percentage of women in the target neighborhoods Percentage of women who feel insecure Annual Perception survey OPISU who feel "little" or "not" in the neighborhood secure based on a perception survey. ME IO Table SPACE Page 60 of 61 The World Bank Metropolitan Buenos Aires Urban Transformation Project Additional Financing (P166935) Page 61 of 61