PROJECT INFORMATION DOCUMENT (PID)
CONCEPT STAGE
Report No.: AB3785
Project Name
Region
Sector
Project ID
Borrower(s)
DO Emergency Recovery & Disaster Mgmt
LATIN AMERICA AND CARIBBEAN
General transportation sector (100%)
P109932
Secretaría de Estado de Hacienda (Ministry of Finance)
Dominican Republic
Implementing Agency
INDRHI
Dominican Republic
CDEEE
Dominican Republic
Environment Category
Date PID Prepared
Estimated Date of
Appraisal Authorization
Estimated Date of Board
Approval
[ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined)
March 31, 2008
March 20, 2008
April 24, 2008
1. Key development issues and rationale for Bank involvement
The Dominican Republic is subject to recurrent disaster events due, in part, to its hurricane- and
tropical storm-prone geographic location. Mountainous areas in the central and western portions
of the country are particularly susceptible to flash flooding and landslides. Deforestation and
land use patterns have contributed to the country’s vulnerability by increasing rainfall runoff and
erosion in affected regions. Although national efforts have sought to reduce vulnerability and
improve water resources management through land restoration activities, the process is slow and
evolving
On October 28, 2007, Tropical Storm Noel struck the Dominican Republic, and the major
rainfall affected much of the country. About 6,000,000 people or 70 percent of the population
were directly or indirectly affected by Noel. Infrastructure—particularly that related to water
resources management, transportation and energy—was heavily damaged, leading to impacts in
key sectors such as agriculture, electricity, drinking water, and sanitation. Hardest hit were small
agricultural operations and subsistence farmers, as well as rural and peri-urban residents. The
country was still reeling from the effects of Noel when Tropical Storm Olga hit five weeks later
on December 10. This storm displaced some 62,000 people and led to further infrastructure
damage, particularly in the drinking water and sanitation sector.
In human terms, Tropical Storms Noel and Olga, and their ensuing floods, affected 26 of the
country’s 32 provinces including the capital, directly impacting over 80 percent of the country’s
territory. The most dramatic effects were felt in the southwestern and central regions of the
country including those provinces with the lowest Human Development Index.1 In fact, of the
75,000 inhabitants directly affected by the storm, 90 percent were living below the poverty line.
Storm-related flooding disproportionately affected poor communities living along riverbanks and
in other disaster-prone areas, such as along the steep slopes that characterize much of the island’s
interior.2
Sector-specific needs and priorities
Agriculture and energy, two key economic sectors in the country, were badly affected. Farming
and animal husbandry—important sources of livelihoods and nutrition—bore $185 million in
economic losses stemming from the loss of lands and irrigation services. Impacts to energy
infrastructure, particularly that related to electrical generation, transmission and distribution are
estimated at $76 million. In the water and sanitation sectors, at least $40 million in infrastructure
impacts affected service provision to 2.5 million people.3
Agriculture
Storm-related impacts on the agricultural sector have serious implications for the food security of
many Dominican households. Over 33,000 hectares of agricultural land were damaged by Noel,
including up to 80 percent of the harvest in some areas.4 Banana and plantain crops, representing
an important nutrition and employment source for the Dominicans,5 were most heavily affected,
representing almost 50 percent of the total impacts to crops, while tomatoes, beans, and other
vegetables were also damaged. Losses to livestock reached almost $20 million, primarily
affecting poultry and, to a lesser extent, cattle. Damages to irrigation infrastructure, essential for
agricultural production, were significant. Specifically, rupture of and sedimentation in water
conveyance structures and damages to water intakes affected almost 4,000 km of canals,
threatening the viability of existing crops.
Energy
Within the energy sector, transmission and distribution lines as well as hydroelectric generation
facilities were most affected. Transmission impacts were most pronounced in the south,
especially in Barahona, Bahoruco, Azua, Peravia, San Cristóbal, and the National District, and
facilities of all three distribution utilities were affected. Damages to hydroelectric facilities were
mostly to ancillary works (access roads), dams (Las Barias and Valdesia), and power generation
plants (Aguacate, Nizao-Najayo, and Aniana Vargas). Water and sanitation services were most
United Nation’s Revised Flash Appeal: Dominican Republic Tropical Storms Noel and Olga, December 2007.
CEPAL. 2008. Evolución del Impacto de la Tormenta Noel en República Dominicana.
3
Ibid.
4
United Nation’s Flash Appeal: Dominican Republic Tropical Storm Noel 2007.
5
According to CEPAL’s damage assessment (Evolución del Impacto de la Tormenta Noel en República
Dominicana; 2008), about 85 percent of bananas and plantains is consumed locally. Likewise, the sector directly
employs about 20,000 people.
1
2
compromised through effects to water supply infrastructure (storage and distribution). During
Olga, significant damage occurred to the city of Santiago’s water and sanitation services, where
floodwaters reaching 5 m affected water and wastewater treatment, collection, and distribution
services.
Drinking Water and Sanitation
In Santo Domingo, floodwaters produced significant erosion and damage to CAASD’s water
processing infrastructure. Increased sediment loads during the emergency required major
adjustments to the treatment process in order to produce potable water. Infrastructure was
damaged but quickly repaired in order to restore service to Santo Domingo residents.
In Santiago, flooding severely damaged CORAASAN’s primary drinking water treatment plant
and the city’s primary wastewater treatment system. As was the case in Santo Domingo, many of
the repairs were made during the emergency.
Institutional Capacity for Disaster Risk Management
Under the guidance of the National Emergency Commission (Comisión Nacional de Emergencia,
CNE), the Dominican Red Cross and Civil Defense have led the response to the storms. Line
agencies such as the Ministry of Health and the Secretariat of Public Works led initiatives such
as distribution of medical supplies and urgent road repairs, respectively, and other sectors such as
electricity, irrigation, and water and sanitation have each led efforts in their own areas. As
demonstrated by the number of deaths and the damage caused by these storms though, the
country’s capacity for disaster prevention, preparedness, and response is relatively weak.
Although the country has a sound legal framework which provides the elements and basis for an
integrated disaster management strategy, the implementation of this strategy is still evolving.
Further efforts are needed to improve coordination and capacity, disaster prevention and
mitigation investments, information sharing among responsible agencies, and harmonization of
methodologies and approaches used for local disaster risk assessments and management plans.
Eligibility for Processing under OP/BP 8.0
The Bank may provide rapid response to a borrower’s request for urgent assistance in respect of
an event that has caused a major adverse economic and social impact associated with a natural
disaster.
In response to the human fatalities, the loss of private and public goods and assets, and
infrastructure damages throughout the country caused by Tropical Storm Noel, the Government
declared a National Emergency with the issuance of Presidential Decree No. 627-07 on October
31, 2007.
The proposed project has been prepared in response to the Government’s February 8, 2008
request (see project files). It will assist the Dominican Republic in the recovery from Tropical
Storms Noel and Olga, which caused major adverse social and economic impacts on the country.
Specific actions financed under this operation include rebuilding and restoring physical assets in
the electricity, irrigation, and water supply and sanitation sectors; restoring essential services in
these sectors; and supporting measures to mitigate potential effects of future emergencies. All
these objectives are explicitly envisaged as part of the policy framework provided by OP/BP
8.00. In addition, consistent with this policy, retroactive financing provided under this project in
support of early reconstruction activities will not exceed 40 percent of the total loan amount.
2. Proposed objective(s)
The proposed project will be financed through an Emergency Recovery loan of US$80 million.
The project will be implemented by INDRHI and CDEEE.
The project development objectives (PDO) are to: (i) restore and strengthen priority, irrigation,
electricity, water, and sanitation infrastructure damaged by Tropical Storms Olga and Noel, (ii)
enhance critical infrastructure in these sectors to reduce future storm-related impacts, and (iii)
strengthen basic capacity for future risk management in INDRHI and CDEEE.
The PDO will be achieved through three components: (1) Rehabilitation and Risk Management
in the Water Resources Sector (US$41 million); (2) Rehabilitation and Risk Management in the
Electricity Sector (US$35 million); and (3) Rehabilitation of Water and Sanitation Infrastructure
in Santo Domingo and Santiago (US$4.17 million). These components are detailed below.
The following outcomes are expected by the end of the project: i) restored function and services
in targeted project areas; and ii) improved disaster risk management systems for irrigation, water
resources management, and electricity. See Annex 2 for more details on outcome indicators.
3. Preliminary description
Component 1. Water Resources (US$41m)
This component aims to: (i) rehabilitate the principal irrigation works damaged by Tropical
Storms Noel and Olga; and (ii) support priority disaster-related institutional strengthening
activities and equipment. The project would restore the operation of these systems through the
reconstruction and stabilization of critical physical infrastructure such as water storage facilities,
headworks, and canal systems.
Subcomponent 1.1. Rehabilitation and Reconstruction of Damaged Infrastructure (US$xxx
million)
Activities under this subcomponent include the retroactive financing of emergency works
completed in response to the disaster and the financing of reconstruction and strengthening
works required to restore the irrigation and water resources management network.
Subcomponent 1.2. Strengthening of Risk Management Systems, Purchase of Technical
Monitoring Equipment, and Development of System Maintenance Program (US$xxx million)
Under this subcomponent, activities will be undertaken to improve INDRHI’s capacity for
watershed management. Specific activities to be financed include the review and strengthening
of system maintenance and operations procedures and requirements, improvement of dam safety
operations integrating the meteorological early warning system into operational procedures,
improvement of the system for management and distribution of water resources management
information to stakeholder agencies; and assistance with the development of a public education
program on water resources and watershed management.
This subcomponent also supports the rehabilitation and strengthening of the national
meteorological monitoring and early warning system, through the purchase and installation of
critical repairs and equipment, as well as the development of an irrigation system maintenance
and management plan.
Component 2. Rehabilitation and Risk Management in Electricity Sector (US$35 million)
The main objectives of this component are to restore priority electricity infrastructure and make
improvements needed in the short term in the areas affected by Tropical Storms Noel and Olga,
and to strengthen the sector’s ability to respond to natural disasters. It includes four
subcomponents:
Subcomponent 2.1: Rehabilitation of Generation Capacity ($XXm).
This includes the rehabilitation of the hydroelectric generation facilities operated by EGEHID,
which were damaged by the recent tropical storms, and specifically includes ancillary works
(access roads), repair of dams (Las Barias and Valdesia), and rehabilitation of power generation
plants (Aguacate, Nizao-Najayo, and Aniana Vargas).
Subcomponent 2.2: Rehabilitation of Transmission Capacity ($XXm).
Included activities are the rehabilitation of ETED transmission lines, including the future
reconstruction of the 69 kV lines of 15 de Azua–Sabana Yegua, Cruce Cabral–Las Damas, and
Sabana Yegua–San Juan, with a total length of 119 km.
Subcomponent 2.3: Rehabilitation of Distribution Capacity ($XXm).
This subcomponent comprises rehabilitation works already performed by the distribution
companies of EdeNorte, EdeSur, EdeEste, and UERS, which are proposed for retroactive
financing.
Subcomponent 2.4: Strengthening Capacity to Respond to Natural Disasters ($XXm).
This includes activities aimed at enhancing the electricity sector’s capacity to respond to
emergencies caused by natural disasters and at implementing the proposed project.
Component 3. Rehabilitation of water and sanitation infrastructure in Santo Domingo and
Santiago (US$4.17 million)
The objective of this project component is to restore storm-affected water and sanitation services
to the cities of Santiago and Santo Domingo.
Subcomponent 3.1.
(US$0.77million)
Retroactive
financing
of
emergency
relief
in
Santo
Domingo
This subcomponent consists of retroactive financing of emergency spending on water
purification chemicals (such as chlorine and aluminum sulfate) used immediately following the
storms, as well as extraordinary purchases of gasoline used for delivering potable water to the
affected population in the wake of the storms.
Subcomponent 3.2. Retroactive financing of emergency rehabilitation works in Santiago (US$3.4
million)
In the aftermath of Olga, CORAASAN moved quickly and effectively to rehabilitate the
damaged infrastructure and restore services to the public. Within the first three months after the
disaster most of the rehabilitation work was completed or well underway. Special emphasis was
placed on restoring the facilities in the most economical way possible, repairing equipment
wherever possible and replacing only the parts that could not be restored. The total cost of
activitis to be implemented by CORAASAN comes to US$3.4 million, and Subcomponent 3.2
will retroactively reimburse these unanticipated expenditures incurred as a result of the disaster
4. Safeguard policies that might apply
Safeguard Policies Triggered by the Project
Environmental Assessment (OP/BP 4.01)
Natural Habitats (OP/BP 4.04)
Pest Management (OP 4.09)
Physical Cultural Resources (OP/BP 4.11)
Involuntary Resettlement (OP/BP 4.12)
Indigenous Peoples ( OP/BP 4.10)
Forests (OP/BP 4.36)
Safety of Dams (OP/BP 4.37)
Projects in Disputed Areas (OP/BP 7.60)*
Projects on International Waterways (OP/BP 7.50)
Piloting the Use of Borrower Systems to Address Environmental
and Social Issues in Bank-Supported Projects (OP/BP 4.00)
*
Yes
[X]
[]
[]
[]
[]
[]
[]
[X]
[]
[]
No
[]
[X]
[X]
[X]
[]
[X]
[X]
[]
[X]
[X]
[]
[X]
TBD
By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the
disputed areas
5. Tentative financing
Source:
Borrower
International Bank for Reconstruction and Development
Total
6. Contact point
Contact: Ann Jeannette Glauber
Title: Environmental Spec.
Tel: (202) 473-3426
Fax: (2020-676-0199
Email: aglauber@worldbank.org
($m.)
0
80
80