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PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Project Name Region Sector Project ID Borrower(s) Implementing Agency Environment Category Safeguard Classification Date PID Prepared Date of Appraisal Authorization Date of Board Approval Report No.: AB1053 BAM EARTHQUAKE EMERGENCY RECONSTRUCTION MIDDLE EAST AND NORTH AFRICA Sector: Housing Construction (80%), Roads and highways (14%), Telecommunications (6%) P088060 ISLAMIC REPUBLIC OF IRAN OIETAI Ministry of Economic Affairs Nasser Khosrow Ave. Iran, Islamic Republic of Fax: 98-21-390-1033 [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) [ ] S1 [X] S2 [ ] S3 [ ] SF [ ] TBD August 9, 2004 June 14, 2004 October 28, 2004 1. Country and Sector Background Iran is known to be one of the most earthquake prone countries in the world. With two major seismic belts, the entire country faces moderate to very high seismic risks. One runs along the Zagros Mountains in southern Iran, along the Persian Gulf, while the other runs through northern Iran around the Caspian Sea. In the 20th century alone, twenty large earthquakes have claimed more than 160,000 lives, destroyed many villages and cities, and caused extensive economic damage to the country. Recurrent earthquakes, which have broad economic and fiscal consequences, destroy on average over one percent of the national housing stock annually. From 1999 to 2001 alone, government subsidies to homeowners affected by natural disasters were in excess of annual average of US$1 billion, which amounts to 1.3 percent of GDP. 2. Objectives The objectives of the Bam Earthquake Emergency Reconstruction Project (BEERP) are to: (a) restore the living conditions of the communities affected by the earthquake; (b) improve emergency preparedness in the Province of Kerman and the District of Bam and; (c) strengthen the planning and management capacity under the reconstruction program. 3. Rationale for Bank Involvement The IBRD has significant global and country-specific experience in post-disaster emergency reconstruction. In Iran, between 1992 and 2002 three reconstruction projects have been prepared with the total lending of US$487 million1. The projects covered both reconstruction investments and technical assistance programs aiming at integrating disaster mitigation measures into country’s development efforts and thus contributing to reduce social and economic risks of natural hazards to which Iran is highly prone. Given the magnitude of the damage and the comprehensive nature of reconstruction efforts needed in the present case, the IBRD is in a unique position to assist the Government of Iran to benefit from the worldwide experience and mobilize additional resources for sustainable reconstruction of Bam. 4. Description The project objectives will be met through five components that are described below: Component-A- Provision of Construction Material and Equipment for Housing and Commercial Buildings: This component will finance the procurement of: (i) construction material (steel bars, steel components for frames and Portland cement) for housing and commercial buildings; (ii) construction equipment, and (iii) design and supervision activities. Component-B- Repair of the Transport Infrastructure: This component will finance: (i) the rehabilitation and preventive works for the main highway linking Bam with the provincial capital city of Kerman; (ii) the rehabilitation and reconstruction of the Bam Airport facilities; (iii) the rehabilitation and paving of village streets and; (iv) design and supervision activities. Component-C- Repair of the Telecommunications Infrastructure: This component will finance: (i) the reconstruction of telecommunication center buildings; (ii) the reconstruction of the transmission networks; (iii) reconstruction and expansion of mobile and data services and; (iv) design and supervision activities. Component-D- Improved Emergency Preparedness in the Province of Kerman and the District of Bam: This component will finance: (i) retrofitting works of strategic emergency response buildings in the Province of Kerman; (ii) the provision of emergency response vehicles for the District of Bam (fire fighting trucks and ambulances) to replace equipment lost during the earthquake and; (iii) risk assessment and design and supervision activities. Component-E- Project Management and Technical Assistance: This component supports (i) project management through the establishment of the Bam Reconstruction Office (BRO) and; (ii) technical assistance to the BRO, aimed at assisting project implementation and improving project management capacity through the procurement of consultants for Procurement Advisory Services, Monitoring Advisory Services and Technical Advisory Services. 5. Financing Source: BORROWER INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT ($m.) 15 220 Total 235 6. Implementation The project will be implemented by the Housing Foundation (HF), line ministries and other specialized Government agencies. Support to project management will be provided through the Bam Reconstruction Office (BRO) that will be set-up under the Reconstruction Planning SubCommittee at the HF. The BRO will be responsible for the overall contract management, coordination and procurement assistance to project implementation agencies; as well as the supervision and monitoring of implementation progress. The BRO will play an oversight function to ensure the adherence of the implementing agencies to the safeguard policies and to the implementation of relevant mitigation measures. 7. Sustainability The principal benefits of the Project are the reconstruction of the physical assets and the resumption of services to the earthquake-affected communities. The overall environmental impact of the proposed project is expected to be positive in that it supports the restoration of necessary infrastructure in areas heavily damaged by the earthquake. Potentially negative environmental impacts are primarily associated with the construction works, such as land clearing, disposal of debris and worker safety. Investments identified under the IBRD financed project will not involve major expansion of space nor invasion into green areas. To ensure full compliance with the IBRD’s environmental and social safeguard requirements, and based on the best-practice models in similar earthquake recovery operations, a Social and Environmental Screening and Assessment Framework (SESAF) was prepared by the Borrower. A Monitoring and Advisory Services Consultant (MASC) will be financed under Component-E of the Project to provide monitoring support to BRO throughout project implementation. During Project implementation, all projects would be screened to ensure that environmental and social risks, if any, are adequately addressed through the application of the standardized guidelines provided for under the SESAF. The participation of earthquake affected communities (especially the most vulnerable groups and women) and the involvement of local Non-Governmental Organizations (NGOs) is incorporated into the project Communications Strategy that will implemented by BRO. The strategy will serve as a policy framework for implementation agencies on flows of information and consultation processes among different levels (project implementation agencies, local governments, community leaders, NGOs, women, youth, the disabled, and children). Also, a Sr. Social Officer and Sr. Legal Officer will be hired at the Bam Reconstruction Office in order to implement the Communications Strategy and the SESAF. They will ensure: (i) the timely consultation of the affected population; (ii) the early identification of social safeguard concerns and; (iii) the sound implementation of relevant mitigation measures . 8. Lessons Learned from Past Operations in the Country/Sector The Project has simple design and relies on existing institutions. Project activities are simple and independent from pre-investments. They involve limited land expropriation and resettlement. 9. Safeguard Policies (including public consultation) Safeguard Policies Triggered by the Project Environmental Assessment (OP/BP/GP 4.01) Natural Habitats (OP/BP 4.04) Pest Management (OP 4.09) Cultural Property (OPN 11.03, being revised as OP 4.11) Involuntary Resettlement (OP/BP 4.12) Indigenous Peoples (OD 4.20, being revised as OP 4.10) Forests (OP/BP 4.36) Safety of Dams (OP/BP 4.37) Projects in Disputed Areas (OP/BP/GP 7.60)* Projects on International Waterways (OP/BP/GP 7.50) Yes [X] [] [] [X] [X] [] [] [] [] [] No [] [X] [X] [] [] [X] [X] [X] [X] [X] 10. List of Factual Technical Documents Damage Assessment Report, February 2004. 11. Contact point Sateh Chafic El-Arnaout Title: Senior Municipal Development Specialist Tel: (202) 473-0203 Fax: (202) 477 1993 Email: [email protected] 12. For more information contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 458-5454 Fax: (202) 522-1500 * By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas Web: http://www.worldbank.org/infoshop Elena Gagieva P:\IRAN\IF\88060\APPR\Project Information Document - Appraisal Stage.doc 8/13/2004 11:45 AM