INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE I. Basic Information
Date prepared/updated: 09/15/2011 Report No.: 64675
1. Basic Project Data
Country: Oriental Republic of Uruguay Project ID: P123461 Project Name: UY Institutions Building Technical Assistance Additional Financing Task Team Leader: Amparo Ballivian Estimated Appraisal Date: Oct. 1, 2011 Managing Unit: LCSPS Estimated Board Date: Dec. 6, 2011 Lending Instrument: Technical Assistance Loan Sector: General public administration sector (100%) Theme: Public expenditure, financial management and procurement (P);Tax policy and administration (S); Judicial and other dispute resolution mechanisms (S) IBRD Amount (US$m.): 10.00 IDA Amount (US$m.): GEF Amount (US$m.): PCF Amount (US$m.): 0.00 0.00 0.00 Other financing amounts by source: Borrower 0.0 0.0 Environmental Category: C - Not Required Simplified Processing Simple  Repeater [X] Is this project processed under OP 8.50 (Emergency Recovery) Yes [ ] No [X]
2. Project Objectives
The objective is to improve the Borrower’s public sector performance by: (i) supporting its public sector modernization program in the areas of monitoring and evaluation, performance-based budgeting, e-government, tax administration and statistics; and (ii) strengthening its institutions involved with the design and implementation of public policy reforms in the areas of taxation, promotion of the business environment, and social protections.
3. Project Description
The proposed additional financing would help finance the costs associated with a scale up of a well performing project in order to enhance its development impact. This will be achieved through: (i) increasing financing for four components to expand their original coverage; (ii) adding two components; (iii) slightly adjusting the PDOs to reflect the changes made to the original components and the inclusion of the two new components; and (iv) and the revision or elimination of a few activities envisioned in the original Legal Agreement, which are no longer relevant; and (v) adjusting the project’s results framework to reflect the identification of a few data limitations, the modifications of the original components, and the inclusion of new components. Furthermore, the additional financing will help continue to provide technical assistance to the DPL series on Public
Sector Competitiveness and Social Inclusion, especially in the areas of fiscal reform, capital markets, and the social information system, SIIAS. Four original components would receive additional financing: (i) Component 2— Improving M&E; (ii) Component 4(b)—Support for Institutional Strengthening and Implementation of Social Protection Reforms; (iii) Component 5.b—Supporting Corporate Transparency; and (iv) Component 7—Project Coordination and Strategy Development. Component 2, Improving M&E, would receive US$1 million in additional funds to begin work on second generation improvements on M&E, focused on increasing transparency and dissemination of M&E results, supporting rapid evaluations of priority Government interventions, building capacity for the evaluation of public sector projects, programs, and policies, and finally designing and implementing impact evaluations. Component 4b, Support for Institutional Strengthening and Implementation of Social Protection Reforms, would receive an additional US$1.1 million to fund SIIAS, the Integrated Social Information System, to increase institutional coverage of social programs, fund analytical surveys, and provide further institutional strengthening. Component 5.b, Supporting Corporate Transparency, would receive US$500,000 in additional funds to strengthen the National Internal Audit (AIN by its Spanish acronym), centered on the implementation of XBRL, which is a new taxonomy for the digital communication of financial information to the Registry of Financial Statements (REC by its Spanish acronym). Finally, Component 7, Support for the Project Coordination and Strategy Development, would also receive an additional US$3 million in funds to continue to provide just in time support for carrying out studies and other consultancies related to Project coordination and strategic development that are proposed by the Borrower and approved by the Bank.
The two additional components would be Component 8—Supporting Selected Modernization Efforts of National Tax Directory and Component 9—Supporting Institutional Strengthening of the National Statistics Institute. Component 8, Supporting the Directorate of Taxation (DGI by its Spanish acronym), would receive US$3 million to strengthen tax compliance and risk management at DGI and to support the development of software for managing electronic accounting, its dissemination and customer support, aimed at increasing electronic filing (e-filing) and, indirectly, improving tax controls. Component 9—Supporting the National Statistics Institute (INE by its Spanish acronym), would receive US$1.4 million, to support institutional strengthening, support for the coordination of a poverty measurement working group of the Latin American and Caribbean Economic Association (LACEA), the design and deployment of a panel survey of the most vulnerable population, and the house income and expenditure survey.
4. Project Location and salient physical characteristics relevant to the safeguard analysis
The Project is located in Montevideo, Uruguay. No infrastructure works or related activities will be financed by the Project. There are no physical characteristics relevant to the safeguard analysis.
5. Environmental and Social Safeguards Specialists 6. Safeguard Policies Triggered Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11) Indigenous Peoples (OP/BP 4.10) Involuntary Resettlement (OP/BP 4.12) Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) Projects in Disputed Areas (OP/BP 7.60) II. Key Safeguard Policy Issues and Their Management Yes No X X X X X X X X X X
A. Summary of Key Safeguard Issues
1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts:
The original project (P097604, Loan 7451-UR), was classified as Category C. While there were no safeguards triggered by the original project, some of the envisaged studies and consultancies under Component 7.c (Studies and Other Consultancies) of the additional financing may have some downstream social and environmental implications through future programs or projects. Studies and consultancies already financed under Component 7.c (Studies and Other Consultancies) of the original project have been analyzed, with particularly close attention to the private public partnerships law and updating of the methodology for evaluation of the cadastre system. No safeguard issues have been identified. The new studies and consultancies to be financed under Component 7.c (Studies and Other Consultancies), which may involve drafting of policies or regulations with potential environmental and social effects, will be confirmed once their nature and scope are defined during implementation of the project. The Bank will review the terms of reference (TORs) for these future activities and comment, if applicable. The TORs will include a standard section asking consultants to identify any potential social or environmental downstream implications of their work or the implementation of their recommendations.
2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area:
Component 7 (Support for Project Coordination and Strategy Development) is not expected to finance any activity with potential indirect or long term impacts due to anticipated future activities in the project area. As described above, TORs for studies and other consultancies financed under Component 7 (Support for Project Coordination and Strategy Development) will be reviewed to ensure activities defined during implementation do not have indirect or long term safeguard implications.
3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts.
4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described.
The Ministry of Economy and Finance, as the implementing agency, will be in charge of the environmental and social management of relevant activities of the Project as described in previous sections. In cases where potential implications are identified, the adequate environmental and social expertise will be contracted to ensure proper consideration of safeguards issues within the study or task. This process will be backed up by the Bank’s review of each TOR.
5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people.
This ISDS will be disclosed in country and also through the InfoShop. It is expected that publication of this ISDS reach key stakeholders of relevant activities of Component 7 (Support for Project Coordination and Strategy Development), which include government and non government actors throughout Uruguay, and will vary depending on the nature of the study and consultancies.
B. Disclosure Requirements Date * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why:
C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting)
The World Bank Policy on Disclosure of Information
Have relevant safeguard policies documents been sent to the World Bank's Infoshop? Have relevant documents been disclosed in-country in a public place in a Yes Yes form and language that are understandable and accessible to project-affected groups and local NGOs?
All Safeguard Policies
Appropriate time and budget have been allocated for the safeguards assessment of this project. Institutional responsibilities have been defined for the implementation stage, as described above, for both the Bank and the Borrower.
D. Approvals Signed and submitted by:
Task Team Leader: Environmental Specialist: Social Development Specialist Additional Environmental and/or Social Development Specialist(s):
Regional Safeguards Coordinator: Comments: Sector Manager: Comments:
Amparo Ballivian Graciela Sánchez Martínez Arturo Herrera.
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