PROJECT INFORMATION DOCUMENT (PID) CONCEPT STAGE Project Name Region Sector Project ID Borrower(s) Implementing Agency Environment Category Safeguard Classification Date PID Prepared Estimated Date of Appraisal Authorization Estimated Date of Board Approval Report No.: AB871 ODRA RIVER BASIN FLOOD PROTECTION EUROPE AND CENTRAL ASIA Flood protection (80%);General water, sanitation and flood protection sector (20%) P086768 POLAND [X] A [ ] B [ ] C [ ] FI [ ] TBD (to be determined) [X] S1 [ ] S2 [ ] S3 [ ] SF [ ] TBD (to be determined) April 21, 2004 October 5, 2004 May 31, 2005 1. Key development issues and rationale for Bank involvement Occurrence of large floods in the Odra River and its tributaries are frequent. In the 19 th century, four major floods were recorded in the years 1813, 1829, 1854 and 1880, while in the 20 th century, twelve large floods were recorded, of which the July 1997 flood was by far the largest. The 1997 flood was caused by extremely heavy rain, with some meteorological stations recording as much as 400 mm over a four day period. The total July 1997 rainfall was four times that of the long term average. As a result, an area of 650 km2 was inundated in the three voivodships of Slaski (Upper Silesia), Opolskie and Dolnoslaskie (Lower Silesia) damaging 37,000 buildings, 866 bridges and over 2,000 km of roads. An estimated 130 km of dikes were completely destroyed. The estimated damages in these three voivodships due to the 1997 flood were about PLN 8.5 billion. It caused the loss of 54 lives; flooding of some 700,000 households, while about 110,000 people had to be evacuated. The damages, comprising the costs of rescue, stress, loss of public and private property and production, and etc., were considerable. The flood of July 1997 exposed the weakness of the present flood protection system in the Odra River Basin (ORB) which is about 100 years old, developed after the 1903 floods. The protection system could not withstand the flood, and as a result major urban centers were flooded for extended periods. Similarly, the flood forecasting, monitoring, and warning systems performed poorly. The monitoring systems were damaged early, and the communication systems failed leaving uncoordinated operations of hydraulic structures. The Government’s response to flood recovery, however, was swift. The international community provided support, and the Bank led a major effort for providing assistance in flood damage recovery. The Emergency Flood Recovery Project (EFRP, US$500 million) with a Bank loan of US$200 cofinanced by EIB and other donors was focused to rehabilitate the damaged municipal and rural infrastructure. The Bank loan also provided for upgrading the flood forecasting, monitoring and warning system which is now one of the most modern systems in the world, and for improving flood management at the local level. While Poland has an excellent flood forecasting system, the flood protection system is still weak and needs additional investments to bring it to the required standards in order to eliminate loss of life and damage to property due to recurrent floods. Poland together with Germany, the Czech Republic and the EU formed the Odra River Commission under which Poland prepared the Odra 2006 Program after the 1997 floods. The focus of the Odra 2006 Program that was approved by the Polish Parliament under an Act of July 6, 2001, is modernization of the Odra River system to provide flood protection. Under the program, a number of localized flood protection works for many cities in the basin have been implemented. The project would support implementation of the two main elements of Odra 2006 Program construction of a dry polder at Raciborz and modernization of the Wroclaw Floodway System (WFS). Moreover, the EU Cohesion Fund for Poland has also foreseen funds for flood protection in the ORB. The last CAS for Poland was discussed by the Board on December 10, 2002. The main focus of the CAS is continued support for growth and macro-stabilization by improving the effectiveness of Government expenditures and programs, and enhancing private sector -led growth and employment creation. The Bank’s potential role in the CAS is investments for growth and poverty reduction, and also the role that the Government would like the Bank to play in coordinating and consolidating the support of other partners. Though not explicitly listed in the CAS, the project fits extremely well in the CAS objectives and the envisaged Bank role. As mentioned above, damages caused by floods in the ORB, certainly by large floods of the magnitude of 1997 flood, impose a huge cost for the Polish economy, and result in substantial fiscal burden to the country. The proposed Odra River Basin Flood Protection Project (ORFPP) is important in improving the macroeconomic situation of the country and providing necessary protection to eliminate the loss of life and minimize damages to property, thus providing a safe environment for continued economic growth. The project would be included in the upcoming CAS update planned for FY05. After the 1997 floods, the Bank’s involvement in this field has been substantial. In design and implementation of EFRP, the Bank has provided leadership and technical expertise in flood damage recovery, modernization of flood forecasting and warning system as well as preparation of the proposed project. The Bank has made substantial contribution in improving the design of the proposed project, such as combing the two interventions, construction of Raciborz dry polder and WFS, optimizing the operation of all flood infrastructure in the basin thus providing the best solution for flood protection in the ORB. The Government recognizes the Bank’s continued role in the flood sector and particularly in this project. Bank involvement is crucial for donor coordination and for mobilizing EU Cohesion funds, as well as ensuring proper implementation of the project which is central to the Odra 2006 Program. 2. Proposed objective(s) The main development objective of the project is to protect the population in the ORB against loss of life and damage to property caused by severe flooding. This would be achieved by (i) reducing the extreme flood peaks through storage in a dry polder on the Odra River just upstream of Raciborz; and (ii) by increasing the flood carrying capacity of the Odra River channels through and around Wroclaw city. The project would protect more than 2.5 million people against flooding in several cities along the river. The key performance indicators for ORFPP are to reduce the inundated areas for various flood return periods (such as 10 years, 20 years, 50 years) and to protect major cities and main urban population centers from floods at the magnitude of 1997 flood; and to improved institutional capacity in flood management in the basin. 3. Preliminary description The project intends to improve flood control and river management in the Odra River basin between the Czech border and Brzeg Dolny. The main components of the project include: (i)development of a dry polder along the upper Odra River, near Racibórz; (ii) improvement of the existing flood protection structures near and in the city of Wrocław, including reconstruction of embankments in the floodplains and overflow polders, improvement of the Odra-Widawa flood diversion channel, and an increase in the carrying capacity of the Widawa channel; (iii) institutional capacity building in areas of flood management and project implementation and impact monitoring and evaluation; and (iv) support in project management. Component A: Construction of Raciborz Dry Polder ( EURO € 230.4 million) A dry polder would be created on the Odra River near the town of Raciborz to store flood water. Total capacity of the reservoir would be about 185 Mm3. Main benefits from this reservoir will be (i) a reduction in the Odra peak flows downstream of the reservoir, so that the effectiveness of the existing flood defense system will be greatly improved; and (ii) a delay in the timing of the flood peaks at the confluence of the Odra with the Nysa Klodzka, a major tributary of the Odra river below between Raciborz and Wroclaw so that the adverse combination of the two floods that was so damaging in 1997 will become unlikely in the future. These two phenomena, in combination, will result in a considerable reduction in the frequency and severity of future floods. Component B: Modernization WFS ( € 249.7 Million). Currently, Wroclaw is subject to inundation with floods greater than 2,200 m³/s, while flows during the 1997 flood were 3,640 m³/s. The Raciborz dry polder would offer partial protection to the city. Therefore, full protection to the Wroclaw city is provided, by modernizing and upgrading the protection system along the Odra channels passing through the city. These works include: (i) improvements to Odra River dikes and embankments; (ii) improvements to the Odra River channels designed to increase the hydraulic capacity of the Odra; and (iii) transfer of part of the flood flows to Widawa river valley which then joins again to Odra River below the Wroclaw city where Odra river has adequate capacity. Component C: Institutional Development, Improving Flood Management, Monitoring and Evaluation, and Supervision of the EMP& RAP (€ 14.5 million). The component would consist of the following sub-components: (i) institutional strengthening for improved flood management in the Odra River basin; (ii) continued support to improve the flood forecasting system, to ensure that the system of hydro-meteorological forecasting, currently being installed would remain operational; and (iii) monitoring and evaluation of the project impacts, including the implementation and monitoring of the environmental management plan, and the resettlement action plan (RAP). Component D: Project Management, Technical Assistance and Training (€ 5.4 million) This component would support the Government in implementing the project, including: (a) support for the operation of the PCU and implementing agencies, and financing of overall project management, as well as technical assistance in such areas as detailed design, contract administration and construction supervision, procurement, and financial management; and (b) a modest institutional strengthening program, including technical assistance and training, would be included in the project. 4. Safeguard policies that might apply The present project is rated as Category “A” under OP4.01 and triggers six (6) safeguard policies, including environment assessment, involuntary resettlement, natural habitats, safety of dams, cultural property and projects on international waterways, for which mitigation measures will be undertaken as a part of the Environmental Assessment (EA) and the Resettlement Action Plan (RAP) being prepared by the Government. Environmental Assessment (OP/BP 4.01) Implementation of project activities on the ORB would require assessment and analysis of its impact on the environment, and therefore an Environmental Assessment (EA) Report that will comply with all Bank’s environmental Safeguard policies, including OP 4.01 will be prepared. Natural Habitats (OP/BP 4.04) As there are some critical natural habitats of national significance in the project area, OP4.04 is triggered. The polder area in Racibórz as well as some of the downstream floodplains include natural habitats that may be proposed as protected areas in the European Union’s Natura-2000 network. The exact locations of these areas will be known when Poland’s application is submitted to the EU on May 1, 2004. The EMP will provide an outline of a plan to manage the potential risks to these habitats and the necessary safeguards during construction and - where needed – in the overall water management plan for the project area. Involuntary Resettlement (OP/BP 4.12) Construction of a 2600 ha polder, to be used as an emergency flood water storage would risk occasional flooding of the inhabitants, largely concentrated in two villages (240 families). However, the Polish Government considers this risk unacceptable and therefore, the inhabitants are to be moved. and the land/property within the polder be acquired by the State. The task team is in the process of reaching an agreement with the government regarding a course of action on the resettlement process and preparation of a Resettlement Action Plan (RAP), consistent with the provisions of OP 4.12 for all affected people in Racibórz. The RAP for Racibórz would be prepared and submitted to the Bank prior to the Appraisal of the project. The land acquisition procedures used in the Raciborz RAP will be applied for all other project interventions (where resettlement is limited to land acquisition). The details of these land acquisition procedures will be prepared by the government and submitted to the Bank for review during project implementation and prior to awarding contracts for construction. Forests (OP/BP 4.36) Under the project, a few forests and tree stands are part of a “protected natural habitat”, and these are covered under the OP4.04 listed above. Safety of Dams (OP/BP 4.37) Since a major activity under the project is creation of a dry polder for the purpose of flood protection, the Safety of Dams safeguard is triggered. An independent Panel of Experts (IPOE) will be established to review project detailed designs and oversee preparation and implementation of the dam safety aspect in such a way that its recommendations will be incorporated into the EA Report. Cultural Property (draft OP/BP4.11 – OPN 11.03) A single significant historical rampart in the WFS is to be protected by diversion of the relevant embankment. Chance find procedures during construction activities will be carried out according to Polish laws, which are acceptable to the Bank.. Projects on International Waterways (OP/BP/GP 7.50) This project involves works in an international waterway, and to conform with Bank policy a notification of the proposed project will be issued to the riparian states. 5. Tentative financing Source: BORROWER INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT EC: EUROPEAN COMMISSION (€ m) 94 106 Total 6. Contact point Contact: Masood Ahmad Title: Lead Water Resources Specialist Tel: (202) 458-2013 Fax: Email: Mahmad2@worldbank.org 100 500