ENVIRONMENTAL BRIEF
October 10, 1996
(Revised November 20, 1996)
PROJECT NAME: Sustainable Development of the Pantanal
PROJECT NUMBER: BR-0249
BORROWER: States of Mato Grosso and Mato Grosso do Sul
EXECUTING AGENCY:
Secretaria Obras Publicas, State of Mato Grosso do Sul
Secretaria Planejamento, State of Mato Grosso
FINANCING PLAN:
Borrowers: US$100 million
IDB: US$200 million
OECF: US$100 million
Total: US$400 million
I. BACKGROUND
1.1 Near the geographic center of South America lies the largest complex of
wetlands in the world. Known as the Pantanal, the area's 200,000 square
kilometers are located principally in Brazil's states of Mato Grosso and
Mato Grosso do Sul. The region has been called a "natural switchboard"
between the continent's two great river basins, the Amazon and the La
Plata. The Pantanal, which is made up of ten large rivers and their
deltas and thousands of lakes and salt pans, has been characterized as an
"endorheic system" or "enormous settling pond."
1.2 The Pantanal has an extraordinary diversity and abundance of both
vegetation and wildlife of Amazon, Chaco and Cerrado origins. Scientific
journals report from 657 to 700 species of birds and over 405 species of
fish on record. The area is the refuge for many of Brazil's threatened
species. The Pantanal also supports an important tourism activity, fishery
industry, and many large "fazendas" which graze up to 8 million head of
cattle.
1.3 Nearly 1.4 million people live within the Pantanal's hydrological basin
(l.0 million in Mato Grosso (MT) and 400,000 in Mato Grosso do Sul). Most
of the population is concentrated in urban areas, with eight cities
accounting for more than 74% of the urban population. Some 31,000
indigenous people live in the region, mostly in MS. They belong to 7
indian nations, the Terena being the largest group.
1.4 The impact of human activity on the Pantanalßs water courses
1. Current concerns
1.5 Although scientific data are scarce, human activity appears to be having
a negative impact on the Pantanal ecosystem. Principal areas of concern
are:
1.6 Soil erosion in the upper watershed and sedimentation of the Pantanalßs
watercourses: Intensive deforestation and farming of the Pantanal's upper
plateau over the past 30 years has created a problem with large loads of
sediment entering the region's major watercourses. Around 73% of the
soils of the watershed are highly to moderately susceptible to erosion.
The expansion of the planting of soja, corn, rice and pasture is producing
heavy erosion (from 600 to 900 MT/Ha/year in large portions of the area)
and intense siltation in several rivers (e.g. the Taquari river carries
around 11 million MT/year). The build-up of these loads has rendered
important rivers unnavigable and has subjected large areas to increasingly
severe flooding.
1.7 Soil and water pollution by farming, alcohol production, and mining:
Changing of agriculture practices in the uplands has meant a significant
increase in the use of agrochemicals, especially pesticides, including
agent white and agent orange and insecticides including organophosphates,
monocrotophos and methyl parathion. Sugar cane mills are also located on
the Planalto adjacent to the Pantanal. While most of these industries
apply contamination control measures some still evacuate effluents that
can lower pH and increase eutrophication of the rivers carrying the
effluents. Mercury used to amalgamate gold found in the riverbeds of the
Pocone, Cuiaba and Bento Gomes rivers is also contaminating the ecosystem.
Traces of mercury have been found in samples throughout the Pantanal.
Because the Pantanal is an almost endorheic system, a buildup of noxious
substances can be expected to increase exponentially.
1.8 Untreated domestic sewage: Urban centers bordering the Pantanal have grown
significantly over the past two decades. However, urban services,
including sewer collection and treatment, have not kept pace with urban
growth. Currently, less than 3% of the domestic and industrial wastewater
generated in these urban centers is properly treated before discharged
into the Pantanalßs rivers. Despite a dearth of quantitative data, it is
evident that some of the receiving rivers and streams are showing
increasing signs of strain from high pollutant concentrations.
1.9 Construction of roads, dikes and dams in the Pantanal: Since 1970, nearly
one thousand kilometers of rural roads and hundreds of kilometers of dikes
and dams have been built to facilitate access to farms, to protect pasture
land from flooding, and to develop agriculture. The result is that
migratory routes of high value fish have been blocked and resulting anoxic
conditions of the water are causing high rates of fish mortality. This
infrastructure also greatly reduces the scenic value of the Pantanal for
tourism.
1.9 Low profitability of traditional cattle ranching in the Pantanal:
Competition with intensive cattle ranching in higher portions of the
watershed, deplorable conditions of the roads within the Pantanal,
increasing yearly flooding and, the partition of large ßfazendasß, are
reducing the profit of traditional ranchers. In response to these
conditions, farmers are changing agricultural practices by planting
pastures, building dikes and dams and, even, considering moving to
intensive agriculture.
1.10 Excessive fishing and poaching: Specific studies are showing a dramatic
decrease in catch (and size) of the better known species. The ßpintadoß
catch in MS was 730 MT in 1985 and only 144 MT in 1991. In the period
1994/95 there were around 7,500 professional fishermen in the Pantanal. Of
these 3,742 were registered in MS. Simultaneously some 46,000 sport
fisherman visited MS. The figures for MT are not known but while
professional fisheries may be less important, sport fisheries is at least
equivalent. Statistics on extraction are not available.
2. Future actions
1.11 Future actions proposed for the area for the next decade may significantly
increase the region's level of economic activity by lowering energy and
transport costs, will likely have an even greater impact than the
activities described above. These actions include: (i) privatization and
modernization of the rail line Corumba-Campo Grande across the Pantanal;
(ii) construction of a railway connection linking the northern watershed
with the central railway system; (iii) repaving of the trunk road (BR-
0364) from Mato Grosso to Acre, Rondonia and its connection in Porto Velho
with the Madeira and Amazon Rivers; (iv) construction of the waterway
Parana-Paraguay; (v) construction of a gas pipeline to connect the Urucu
gas reserves in Bolivia to Mato Grosso do Sul; and (vi) construction of
the road linking Arica-La Paz and Cuiaba.
3. Planning for preservation
1.12 Efforts to closely monitor effects of human activity, plan development in
the area, and take actions to preserve the ecosystem have taken place only
recently and have met with mixed success. In l988, the Pantanal was
declared a national heritage area under the Brazilian Constitution. In
l989 research activity in the region intensified and studies for an IBRD
financed Alto Paraguay River Conservation Plan (PCBAP), that is part of
the National Environmental Program loan, was initiated. Problems
identified and priority activities developed under this program generally
parallel the conclusions of this plan.
B. The strategy of Brazil regarding the Pantanal
1.13 Both states and the Federal Government intend, through the Project, to
significantly reduce the causes of environmental degradation of the
Pantanal in order to preserve its potential for sustainable economic
development. In the Paraguay basin, the States intend to reduce
significantly soil erosion that causes siltation and, urban, agricultural
and mining originated pollution. Within the Pantanal, the States intend to
restore profitability of traditional cattle ranching and promote new
promising sustainable economic activities such as ecotourism and managed
fisheries.
C. The strategy of the Bank
1.14 The project fits within the priorities of the Eighth General Capital
Increase regarding to environment and poverty alleviation. It is fully
consistent with the Bank's country paper for Brazil (October 1995),
regarding actions targeting rural and urban poverty alleviation and
environment, especially regarding state institutions strengthening for
better monitoring and law enforcement capability.
II. OBJECTIVES
2.1 The project would balance the regionßs social and economic growth with
conservation of the Pantanalßs natural resources so that sustainable
development can be achieved.
III. PROJECT DESCRIPTION
A. Borrowers
3.1 The states of MT and MS, under separate contracts, will be the borrowers
and will be responsible for servicing the debt. State water companies will
repay the loan to their states for the water supply and sanitation works
to be funded by the project under similar loan terms. Japan's Overseas
Economic Cooperation Fund (OECF) will provide most of the counterpart
funds with both state financing the remaining counterpart.
B. Execution
3.2 The Project will be supervised through a Coordination Committee, composed
of high level officers of MT and MS and, probably, by the Ministry of
Environment, Hidrological Resources and Legal Amazon . A Consultative
Group, with participation of the public and scientists, will advise this
Committee. At the State level, the coordinating agencies will be the
Secretariat of Planning (MT) and the Secretariat of Public Infrastructure
(MS). Each agency will establish a unit specifically in charge of the
project and will be responsible for the operation with regard to the
states and the Bank. The coordinating agencies will establish appropriate
arrangements with executing agencies and the municipal authorities.
C. Components
3.3 The proposed project has the following five interrelated components:
(i) watershed management; (ii) urban environment; (iii) roads and parkways
; (iv) promotion of sustainable economic activities; and (v) institutional
strengthening.
D. Description of components
1. Watershed management (US$60,400,000)
3.4 This component is a program of watershed management of the Alto Paraguay
River basin. It includes: (i) the preparation of a management plan, based
on the results of the previously mentioned PCBAP; (ii) the establishment
of a watershed authority; (iii) creation of flood early warning system;
and (iv) development of a series of management actions in critical sub-
watersheds such as soil conservation practices, promotion of direct
planting, rationalization of use of agro-chemicals, restoration of
riparian vegetation, demonstrative restoration of a mining site and,
diffusion of lesser damaging mining techniques. Monitoring activities for
management feedback will be considered. Additionally, environmental and
natural resources education and training will be provided. Strong
involvement of organized farmers, local communities and municipal
authorities is planned.
3.5 In MT, the Project will benefit from the experience of the PRODEAGRO
(Northwest Regional Development Program), a technically successful IBRD
program of watershed management and soil conservation developed in the
vicinity of the Pantanal basin. In MS, a new IBRD program of Management
and Conservation of Natural Resources, soon to be initiated in the upper
portion of the Pantanal basin, will cover most requirements for critical
watershed management in the Pantanal basin, complementing the Project. The
basic information for the project development is being provided by the
above mentioned PCBAP, an IBRD founded project included in the National
Environmental Program under execution. Close coordination with the IBRD
projects and with other smaller international and national activities in
the Pantanal (e.g. The Nature Conservancy project in Acurizal) is being
developed.
2. Urban environment (US$158,000,000)
3.6 Water supply and sewerage services are provided by the state public
utilities: Empresa de Saneamento de Mato Grosso (SANEMAT) and Empresa de
Saneamento de Mato Grosso do Sul (SANESUL). These institutions administer
most of the states' municipal systems through their respective regional
and local offices. An overview of the sewerage and wastewater treatment
services in both states suggests the need for urgent rehabilitation,
physical expansion and institutional improvements. With large segments of
the population still unserved by the water distribution systems (20% in MT
and 8% in MS) and unacceptably high volumes of unaccounted water (greater
than 50% in MT and approximately 45% in MS), the need for programs
designed to upgrade existing systems and reduce physical and commercial
water losses is significant. However, greater efforts will be required in
the expansion of the sanitary sewerage systems of both states, since
nearly 90% of the urban population is currently unserved. An equally
pressing situation occurs with solid waste collection and disposal, which
is a service that, in most cases, is deficiently run by municipal
governments.
3.7 This component will include the expansion and improvements to the water
supply and sewerage systems of those cities considered most critical from
the point of view of public health, community well being and environmental
protection. Based on these criteria SANEMAT has preliminarily selected 5
cities where both their water distribution systems and their sewerage
networks need rehabilitation and expansion, and 2 more where actions will
be directed primarily to expanding wastewater collection and treatment.
SANESUL has initially identified 22 municipalities for water supply works
and 10 for sanitary sewerage system improvements. It is expected that
approximately 700,000 people will directly or indirectly benefit from the
proposed works.
3.8 Solid waste collection/disposal and storm water drainage will also be
included within the urban environment component. Preliminarily, 4
municipalities in MT and 7 in MS have been identified for actions related
to the improvement of their refuse collection and disposal service.
Similarly, 10 drainage projects, 9 of which are in MS, have been
identified in cities where storm sewers and the proper channelization of
urban streams is needed to avoid flooding and reduce erosion.
3. Roads and parkways (US$95,000,000)
3.9 The most pressing need for the development of economic activities that are
sustainable in the Pantanal (cattle ranching, ecotourism) is the
restoration of the existing road system within the Pantanal. The Project
contemplates the rehabilitation of 5 existing roads in MT and 2 in MS,
totaling 412 km. and, transforming probably 5 of these roads into
parkways. Some of these roads are already classified as parkways, but have
not developed as such. The proposal is to establish a special protection
status along roads that will prevent developments that are not compatible
with the wetland ecosystem and will promote ecotourism.
4. Promotion of sustainable economic activities
3.10 This component will include technical assistance to farmers to make their
activity more profitable, planning and support to the ecotourism,
management of fisheries and promotion of aquaculture, establishment and of
new protected areas and preparation of existing areas to allow visitors
and, investment for conservation of sites of tourism interest.
5. Institutional strengthening ($20,000,000)
3.11 This component will ensure an efficient enforcement of environment and
natural resources legislation by strengthening the key environmental
agencies in both states (Secretariat of Environment (SEMA) and the
Environmental Foundation (FEMA) in MT, and the Secretariat of
Environmental and Sustainable Development of MS (SEMED). Emphasis will be
placed on the economic sustainability of these institutions through better
collection of fees rights of use and fines. The Bank's support will
provide training and equipment.
3.12 Strengthening of the institutions responsible for public utilities is
particularly required in the case of SANEMAT. Efforts will be primarily
directed to developing an aggressive program to reduce physical and
commercial water losses which, as mentioned before, are unacceptably high.
Additional emphasis will be placed on promoting the decentralization of
the agency, streamlining its administrative functions and on identifying
areas where greater participation of the private sector is deemed
appropriate. SANESUL is currently involved in a major restructuring of its
administrative functions under a program partially financed by the BNDS
and the World Bank. Strengthening activities will therefore become
complementary to those already in progress.
E. Beneficiaries
3.13 Preliminary estimates indicate that the project may directly benefit
around 20,000 inhabitants with water connections and 207,000 with sewage
in MS and 90,000 inhabitants with water and 250,000 with sewage in MT.
Approximately 100,000 people, mostly rural inhabitants, will benefit from
the watershed management and promotion of eco-compatible economic
activities components in MT and some 40,000 would be benefitted in MS. The
number of people benefiting from other activities such as solid waste
management, control of river erosion, urban drainage, etc. have yet to be
determined.
3.14 Most population to benefit are urban or rural poor and indigenous people
amid these last group in MS. As usual, lack of water and sewerage services
impact on the marginal areas of the cities where the project will be
executed. River banks and other areas of intervention of the rural
components are also frequently occupied by minifundia.
F. Project costs
3.15 The total cost of the project is estimated at US$400 millions,
corresponding grossly US$200 million for each state.
IV. SPECIFIC ASPECTS AND RISKS
A. Financial capacity of the states
4.1 In 1995, debt service represented 17% of current revenues in MT and 21% in
MS. For this year, this percentage is expected do drop to 15% in MT (due
to increase in current revenues) and increase to 23% in MS. The lack of
capability of both states to generate a surplus in their current accounts
reveals the difficulties that they are presently facing. Under these
circumstances, it will prove impossible to set aside funds to finance a
new project. To a large extent, increase in revenues will depend on the
evolution of the Brazilian economy and the results of government efforts
in tax administration and expenditure control. The decrease in current
expenditures will depend largely on the State Government efforts to curb
salary costs. The satisfactory rescheduling of payments of short term
liabilities and part of the long term debts not yet negotiated will play
an important role in alleviating the pressures on the State Treasury.
Financial resources coming from the privatization of state owned public
utilities companies could provide some relief, but will not once and for
all solve the problems now faced by the states' administrations.
4.2 The proposed financial strengthening program for the states in Brazil
(Programa Nacional de Assistencia Tecnica em Administra½ßo Fiscal para os
Estados Brasileiros - BR-0171) will play a crucial role in establishing
the viability of the "financial engineering" envisaged for this Program.
B. Financial situation of SANEMAT and SANESUL
4.3 In both states, the present financial situation of the water and sewerage
companies is less than satisfactory. Performance improvements are to be
conducted in areas like control of unaccounted for water, O&M and
administrative cost, reestablishing their capacity to invest in new works
necessary to increase service coverage and quality. Both companies are
executing institutional and financial strengthening programs, but these
have not shown real positive results as of yet. However, in both cases
there are possibilities of significant improvement before analysis
mission. Some municipalities of MS may, in the future, award water and
sewerage service concessions to private enterprises or new municipal
companies. This issue shall be taken into account in project preparation.
C. Economic analysis
4.4 The economic analysis, considering the nature of the Project, will be
difficult. It will focus on four aspects. First, the analysis will
identify the human problem that is being addressed. Second, the analysis
will look at alternative solutions to the problem and examine the cost
effectiveness of the solutions preferring the most cost effective ones.
Third, for projects that are of the same type, the analysis will try to
rank projects in different locations by cost effectiveness in order to
maximize the impact of the limited budget available for the program.
Fourth, where practical, the analysis will determine the net present value
and internal rate of return of the project.
4.5 Committees should understand from the outset that the analysis required to
estimate some environmental benefits (such as the willingness to pay of a
community for cleaner rivers or to enjoy seeing migratory foul that may
disappear if the project is not carried out) is extremely expensive and
may not be very precise. In cases where the cost of the analysis is large
relative to the cost of the project, no sophisticated analysis benefit
estimate analysis will be attempted.
V. PREPARATION STATUS
5.1 The water supply, sewerage and drainage projects for the cities initially
identified are in a relatively advanced state of preparation, having some
of them already developed their respective final designs. Some of the
studies, however, will have to be reviewed to take into account technical
recommendations made by the Bank. The solid waste studies will be prepared
once the final selection of priority projects is concluded. The parkway
establishment and rehabilitation projects are also in an advanced stage of
development. However, there is little development of the studies for
watershed management and institution building as well as for the promotion
of sustainable economic activities. Low income group studies are also
required.
VI. ACTION PLAN
6.1 The analysis mission is programmed for april 1997 and Project discussion
in the Committee of the Whole in June 1997. The Project Team in full will
conduct one orientation mission and the analysis mission. Some members of
the team may be required to do an additional orientation mission. The Team
Leader, based in Brasilia, would undertake two to three additional visits
during the preparation period. Some consultants will be required
(parkways, hydrology, indigenous people, fisheries and ecotourism). It is
estimated that 122 staff and consultant weeks will be required until
approval and 60 additional weeks will be required during project
execution.
VII. ENVIRONMENTAL IMPACTS
7.1 The project is conceived to solve current and potential environmental
problems in the Pantanal. It is essentially an "environmental" project.
However, several negative impacts may be expected if every component (and
action within components) is not carefully analyzed on its own merit as
well as part of the entire project.
A. Description of expected positive environmental impacts
7.2 The expected positive environmental impacts were already discussed in
several previous paragraph. An effort to summarize them is made here:
1. Expected positive environmental impacts in the mid and upper
watershed
a. reduction of soil losses due to erosion by agriculture a cattle
ranching;
b. reduction of soil losses due to river bank erosion caused by
destruction of riparian vegetation;
c. reduction of sediment transportation in water due to agriculture and
mining;
d. rationalization of agrochemicals utilization and reduction of water
and soil pollution due to agrotoxics;
e. reduction of water pollution (mercury and other chemicals) due to
mining;
f. reduction of the rate of deforestation and rehabilitation or
plantation of already deforested or denuded areas;
g. reduction of water and soil pollution of urban origin;
h. better conditions for biodiversity survival in addition to the
establishment and/or management of protected areas;
i. larger and better sources of food and nesting sites for fishas well
as facilitation of reproductive migratory patterns; and
j. improvement and conservation of natural scenery.
2. Expected positive environmental impacts in the Pantanal
a. reduction of rivers and lakes siltation and reduction of the
incidence of extraordinary floods;
b. reduction of pollution levels of all origins (agriculture, mining,
urban);
c. improvement of the conservation of the Pantanal ecosystem, reducing
deforestation of river banks and "sierras" and reducing the need to
establish agriculture or cultivated grasses, build polders, river
defenses and barrages or the need to drag the rivers;
d. improvement of wildlife habitat by avoiding ecosystem disturbance
and reducing pollution and siltation and better offer of food and
nesting sites for birds, including migratory species;
e. improvement of fisheries stocks, by facilitating fish annual
migration, preserving nesting sites, more food, controlling
predatory fisheries and reducing pollution levels;
f. improvement of biodiversity conservation in general and specifically
in better managed or newly established protected areas; and
g. improvement of water circulation by improvement of existing roads.
B. Expected socio-environmental benefits
7.3 The positive impacts expected are:
a. improvement of the quality of life of urban population of lower
incomes through provision of basic services (water, sewage,
drainage, solid residues management);
b. improvement of the quality of life of rural population, including
indigenous people, through assistance in sanitation, flood alert
system, protection against riparian erosion, reduction of water and
soil pollution levels;
c. reduction in the level of incidence of human environment-related
diseases;
d. improvement of agricultural production and productivity through soil
conservation, rationalization of agrochemicals utilization,
agroforestry practices, afforestation assisting traditional cattle
ranching in the Pantanal;
e. creation of new work opportunities in cities, towns and rural areas
through ecotourism, pisciculture, fisheries management, protected
areas management, improved mining practices, etc.;
f. reduction of waste in commercial and sport fisheries; and
g. prevention and/or solution of water use and related conflicts (or a
fora for its solution) through the establishment of a watershed
management authority.
C. Description of risks or possible negative environmental impacts
7.4 All risks, except one, and potential negative environmental direct or
indirect impacts, are originated in specific actions considered in the
components and not from the overall project concept. These potentially
risky actions are reviewed one by one in the following paragraphs.
7.5 Urban environmental works. Water, sewage, treatment plants, urban
drainage, solid waste management, all have several direct and indirect
environmental impacts that will require environmental impact assessments
for each work. A special problem in the area is that the water table is
very superficial. On the other hand, a few minor resettlement may be
needed. Resettlement plans will be required in such cases.
7.6 Rehabilitation of roads and their transformation into parkways. All roads
in the project are roads already in use for decades. The project is not
considering the paving of the roads, but it will improve road surfaces and
replace the wood bridges with concrete bridges. The wood bridges have a
short duration and the replacement cost is high and difficult, as well as
environmentally risky considering hardwood scarcity in the region. The
opportunity will be taken to improve natural drainage conditions along the
roads, i.e. making longer bridges. Some roads will be transformed into
parkways, with inclusion of pertinent modifications. The establishment of
the parkways will require specific studies and technical specification for
each road. Therefore, a parkway establishment study and an environmental
impact assessment for each one will be required.
7.7 Ecotourism promotion. Ecotourism is a double edge action in environmental
and social terms. If very well planned, is essentially benign, both in
direct and indirect impacts. However, if nature conservancy is not the
driving force of regulation of this economic activity it may well result
in serious direct and indirect impacts. Matters such as ecosystem and
habitat carrying capacity for visitors, direct impact of infrastructure
and equipment, social impact and redistribution of gains amid local
people, environmental trade-offs, local cultural impact, land use
implications, etc. are very important. In the Pantanal the fishing sport
is already much more relevant in terms of annual catch than commercial
fisheries. Uncontrolled and unsupervised fishing and hunting can cause
ecological damage. Therefore, ecotourism will be subject to a development
plan which will help to guide an appropriate ecotourism in the region.
7.8 New protected areas. Here the risk is only social, if some of the proposed
areas (not yet defined) create a conflict with traditional or local
populations or if resettlement is needed. Every proposed new protected
area will be required to have a detailed assessment of these issues in the
establishment study.
7.9 Pisciculture promotion. The goal of the project is to promote pisciculture
of native species. However, there are already several introduced species
in the Pantanal and the component will have to discourage it. On the other
hand, pisciculture may accrue the risk of fish diseases and parasites.
Studies on these risks will be required.
7.10 Rehabilitation of mining sites. The main environmental risk of abandoned
mining sites rehabilitation is decurrent from residues removal and
disposal, during work. It may release more sediments and, especially,
pollutants (mercury) in the rivers and, on the other hand, the risk of
work accidents is also important. An environmental impact assessment will
be required. However, it shall be noted that probably only one mining site
will be rehabilitated with the project, as a pilot experience.
7.11 General social and environmental risks. The main general risk of this
operation is related to the failure of the project or the failure of a
component or actions. However, in such event the situation would not be
worst than today, without project, excepting as a consequence of an
unchecked ecotourism promotion.
7.12 Public perception risks. The risk that the entire project be miss-
interpreted by the public opinion and by the NGO movement in MT and MS, in
Brazil and especially abroad is important. It may be easily associated to
the HIDROVIA project, already under public scrutiny. The borrower, the
executing agencies and the Bank shall fully apply and even exceed their
policies, legislation and rules of openness, transparency and public
participation. This is clearly a project which is social and
environmentally sound and, especially, necessary to avoid the progressive
destruction of the Pantanal and its people. There is nothing in it that
cannot be public.
VIII PREPARATION STATUS OF ENVIRONMENTAL STUDIES
8.1 Environmental considerations were, to some extent, included in the
existing studies of investments in each component. However, these studies
are at different stages of preparation and several are yet to be
undertaken, especially in the watershed management component. In general
terms it can be said that all environmental impact assessments and
environmental studies or analysis, as well as resettlement plans, have to
be done.
IX. ENVIRONMENTAL CLASSIFICATION
9.1 It is recommend this project receive the Environmental Category III.
X. RECOMMENDATIONS TO THE PROJECT TEAM
10.1 The Project Team must ensure the following actions and get the following
products, during project preparation:
a. each investment in urban environment (water, sewage, treatment
plants, urban drainage and solid waste management), road improvement
and mining sites rehabilitation will have to be based on an
environmental impact assessment and its "Relatorio de Impacto
Ambiental" (RIMA) and on the respective "Licencia Ambiental Previa"
and "Licencia Ambiental de Instala½ßo", following strictly Brazilian
and each State legislation and procedures. Exception for very small
investments in urban environment can be accepted in application of
the Brazilian and each State legislation but shall be carefully
reviewed by the Project Team;
b. when Resettlement Plans are required, these should be reviewed by
the Project Team;
c. protected areas to be established, including parkways, must be
ecologically and socially analyzed through comprehensive
establishment studies;
d. other components, especially watershed management and institutional
strengthening, as well as ecotourism and fisheries promotion, that
cannot be subject to an environmental impact assessment must be
environmentally analyzed within the studies that justify them or
through special environmental analysis, if required (e.g.
pisciculture);
e. public participation in project conception and in each environmental
study and resettlement plan must be encouraged and facilitated by
the States and by the Project Team, according to Brazilian
legislation and Bank policies and procedures. Special meetings of
the Project Team with interested parties must be held, in close
coordination with the States;
f. an ongoing mechanism for social participation, such as a
consultative group, that might continue to work during project
implementation should be established;
g. The terms of reference for the preparatory studies must give full
consideration to the impacts of the program on indigenous population
in the area and to alternatives for these groups to participate in,
contribute to, and benefit from the program; and
f. the Project Team, with the above indicated information, must prepare
a general Environmental Analysis of the project and submit it to the
CMA in the format of an Environmental Summary. This document must
contain:
(i) a description of the monitoring system for progress of
the program and for its impact on the area, including a
clear baseline, goals and benchmarks, a dynamic process
of data collection, evaluation and feedback, and
mechanisms to implement any needed adjustments
(ii) an explanation of how the consultation mechanism was organized
during preparation and how it will work during execution, and
(iii)all appropriate annexes including maps and illustrations.
