PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Project Name Region Sector Project ID Borrower(s) Implementing Agency Environment Category Date PID Prepared Estimated Date of Appraisal Authorization Estimated Date of Board Approval Report No.: AB6733 Modernizing the National Meteorological Service to Address Variability and Climate Change in the Water Sector in Mexico (MOMET) LATIN AMERICA AND CARIBBEAN General water, sanitation and flood protection sector (70%);Irrigation and drainage (20%);Flood protection (10%) P126487 Federal Government of the United Mexican States Servicio Meteorológico Nacional Comision Nacional del Agua (CONAGUA) Av. Observatorio No. 192 Col. Observatorio Delegacion Miguel Hidalgo. Zip code 11860 Telephone No.: +52 55 26364601/ 26 36 46 00 Ext. 3404/3199 Contact Person: Adrian Vazquez Galvez, General Coordinator, Email:felipe.vazquez@conagua.gob.mx [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) July 12, 2011 February 28, 2012 May 17, 2012 1. Key development issues and rationale for Bank involvement The water sector is central to Mexico’s sustainable development. Given Mexico’s geography – the country is lying between two oceans, and two thirds of the territory is arid or semi-arid, whereas the southeast is humid– the expected impacts of climate variability and global climate change include an increase in average and extreme temperatures, a greater variability in rainfall extremes and thus changes in runoff patterns. Given the population growth, flash floods and mudslides are occurring in areas not prone to them before, increasing the threats to lives as well as assets, particularly as settlements in floodplains and low lying coastal areas expand A large share of Mexico’s aquifers is already over-exploited. Rising prosperity and a growing population will stress them further, along with surface water resources, thus spotlighting the need for more accurate data to support water resource management. Also, the severity of thunderstorms has increased as they form more quickly, affect a greater expanse of territory, and are more intense, further increasing risks to life and property. According to data from the National Center for Disaster Prevention (CENAPRED), since 1999, severe hydro-meteorological events have been responsible for over 97 percent of damage caused by natural disasters. These weather-related disasters cost Mexico more than US$ 10 billion between 1980 and 2005. Over 80 percent of those economic losses occurred in the agricultural sector, increasing the vulnerability for rural households, affecting income generation and resulting in social impacts. Inaction in addressing these challenges will yield economic and social costs that will be further exacerbated by the impacts of climate change. Better capacity to monitor and forecast hydrometeorological events and climate variability is therefore essential to confronting the challenges of climate change. The SMN has experienced a gradual degradation of its technical and institutional capacity and infrastructure over the past ten years. The growing demand for meteorological information and services makes the upgrading of SMN a priority action. There is strong need to recruit and train professionals (meteorologists, climatologist, radar experts, physicist, and engineers) and the professional workforce needs to be increased significantly. There is also a need to automate the observation infrastructure, to establish system for the sustainable and efficient operation and maintenance of data and information and for its analysis and customization and the physical network. The existing modeling tools need to be upgraded in order to address longer term climate forecasting needs. Improving the meteorological and climatic forecasting capabilities to better plan and respond to the needs of major economic and social sectors to a changing climate requires substantial scientific knowledge, data and advanced numerical models for atmospheric phenomena. Following an assessment of the SMN conducted in 2009 by an international panel constituted by the World Meteorological Organization, the World Bank was asked by GoM to prepare an action plan for the modernization of SMN in the context of the Strategic Engagement Program Supporting Adaptation to Climate Change in Mexico. 2. Proposed objective(s) The Project Development Objective (PDO) is to strengthen the capacity of the National Meteorological Service to meet the increasing demand for weather and climate information in order to improve water resources management and support sustainable development in the face of climate change. The Project will enable SMN to enhance its effectiveness as a modern organization that provides reliable, useful and timely information on meteorology, climatology and hydrometeorology and align SMN’s service and products with its national and international commitments. This will support decision making in a range of sectors, including the water sector, agriculture and other productive sectors, to increase productivity, support sustainable development, and protect life and property from the effects of natural disasters of hydro meteorological origin. 3. Preliminary description The project is likely to consist of the following components: Component I: Strengthening Institutional Capacity and Client Communications [US$ 18 million]. This component will include activities to: (a) strengthen SMN’s human resources by training recently hired additional professionals (either as staff or through out-sourcing); (b) improve the organization’s business strategy and processes (including institutional restructuring and design and implementation of a quality management plan); and (c) strengthen communications with clients to ensure that SMN’s services satisfy their requirements and are user-friendly. This communication strategy will include the intensive use of media and modern communication technology (weather channels, mobile and web based information systems). This will include hiring a Panel of four senior international experts to assist the Project Implementation Unit (PIU) and SMN’s Management on strategic decisions in key areas of expertise such as meteorological radar/remote sensing, weather and climate observation and prediction, now-casting, and information technology in addition to procurement, monitoring and evaluation, financial management, and safeguards specialists. The experts will help in the training of national experts so that after their five years period of technical assistance there is capacity to maintain the operations and activities in these areas. The component will finance the implementation of cooperation program with the World Meteorological Organization that will provide training and advisory services and will assist implementation of the Monitoring and Evaluation activities. Component II: Modernizing and Consolidating Observation Infrastructure of the SMN [US$ 47 million]. The main objective of this component is to improve reliability and availability of hydrometeorological data by acquiring new instruments, equipment and infrastructure to expand coverage, improving operations and maintenance, and integrating the existing radar, upper atmosphere, satellite receiving stations and surface weather and hydro-climatic observation networks. It will also finance an assessment of SMN’s information and data processing systems and needs for further improvements, including for business continuity and sustainability. Component III: Improving Meteorological and Climate Forecasts [US$ 9 million]. This component is focused on improving the quality and reliability of weather forecasts and hydrological predictions and the timeliness of information and alerts. It will finance developing and upgrading a range of data assimilating tools and systems, a training program for staff to strengthen professional skills for meteorological forecasting, including now-casting of extreme weather, and climate information (seasonal and long term forecast) . Resources will be also devoted to understanding users and users’ needs and demands, including social and economic sectors, and on customizing the analysis of information to better planning and decision-making processes. The component will also finance an understanding of the type of information that generates greater economic value. These will be carried out under technical cooperation agreements with specialized institutions. Training will be provided to users in order to increase their capacity to use and provide feedback to SMN on its products. This component will also support establishment of a National Climate and Environment Forecasting Center (CENPAC) with participation of national and international scientific institutions (IMTA and CONAGUA) to support the development of new tools, climatic information and modeling and forecasting technologies in association with relevant stakeholders representing different sectors. Component IV: Developing Regional Capacity [US$ 31 million]. This component will support the establishment of five Regional Centers in Veracruz, Merida, Ciudad Obregon, Tuxtla Gutierrez, and in the Valley of Mexico. The Regional Centers, under the direction of SMN, will maintain the observation networks in their area (excluding the radar network, which will be maintained and operated under a single PPP arrangement) and provide meteorological forecasting. As detailed in Annex III, each will also have a specialized monitoring and forecasting function. A major aspect of this component will be to pilot a system to integrate information from a range of observation networks to provide early warnings of flash floods and to support strengthened water basin management in three basins: Yaqui River, Papaloapan River and Valley of Mexico. 4. Safeguard policies that might apply The Project’s social and environmental impacts are expected to be largely positive. Improving weather and hydro-climatic information and forecasting will support better hydraulic infrastructure design, increase productivity and strengthen disaster risk management and vulnerability reduction. Better forecast of future climatic conditions will gradually reduce costs of reconstruction and insurance of infrastructure damaged by poorly predicted severe weather induced disasters. The Project is not expected to have negative social or environmental impacts that cannot be mitigated. Therefore, the Project is expected to be Category B. Safeguards triggered are OP/BP 4.01, Environmental Assessment, OP/BP 4.11 Physical Cultural Resources and OP/BP 4.12, Involuntary Resettlement. The latter is triggered as a precautionary measure with the event that construction of the Regional Centers and location of additional radars or other observation instrumentation requires resettlement (although this is not currently the case). A resettlement framework, defining guidelines to prevent and address possible environmental impacts, would be incorporated into the project during preparation. CONAGUA/SMN has agreed in the ToR and timeline to finalize the Environmental Assessment (EA) of the project by September 2011. The report will include the EA, a review and update of the Environmental and Social Management Framework, the Environmental Management Plan and the a detailed evaluation of the initial 12 sub-projects. 5. Tentative financing Source: BORROWER/RECIPIENT IBRD Total 6. Contact point Contact: Javier Zuleta Title: Sr. Water Resources Mgmt. Specialist Tel: (202) 458-2131 Fax: (202) 522-3132 Email: jzuleta1@worldbank.org ($m.) 0 105 105