PROJECT INFORMATION DOCUMENT (PID) - World Bank



PROJECT INFORMATION DOCUMENT (PID)

CONCEPT STAGE

Report No.: 40905

|Project Name |Clean Air & Sustainable Environment (CASE) Project |

|Region |SOUTH ASIA |

|Sector |General Transport (60%); Other Industry (30%); Central government administration (10%) |

|Project ID |P098151 |

|Borrower(s) |GOVT. OF BANGLADESH |

|Implementing Agency | |

| |Government of Bangladesh |

| |Bangladesh |

| |Ministry of Environment and Forests |

| |Department of Environment, Paribesh Bhaban, |

| |E-16 Agargaon, Sher-e-Bangla Nagar, |

| |Bangladesh |

| |1207 |

|Environment Category |[ ] A [X] B [] C [ ] FI [] TBD |

|Date PID Prepared |September 5, 2007 |

|Estimated Date of Appraisal Authorization |March 24, 2008 |

|Estimated Date of Board Approval |June 23, 2008 |

1. Key development issues and rationale for Bank involvement

The recently completed Country Environmental Assessment (2006) conducted jointly by the Government of Bangladesh (GOB) and the World Bank identified (indoor and ambient) air pollution as the leading cause of mortality and morbidity related to an environmental issue in Bangladesh. It was estimated that a reduction in exposure to urban air pollution of 20 to 80 percent would result in saving 1,200 to 3,500 lives annually and avoiding 80 to 230 million cases of ill health – equivalent to US$ 169 - 492 million.

The Department of Environment (DOE) has been working on urban air quality management with a focus on addressing particulate matter (referred to as PM10[1]) – the primary pollutant of health concern in Bangladesh. In 2000 DOE began implementation of the Air Quality Management Project (AQMP) - a US$5.93 million World Bank-supported Learning and Innovation loan (LIL), which helped put together some of the basic “building blocks” for air quality management, including: a) an air quality monitoring system has been put in place; b) new ambient air quality and vehicular emission standards have been promulgated; c) an Air Quality Index has been developed and made publicly available; and d) measures to enforce emission standards for gross polluting public transport vehicles (mostly buses) are being undertaken.

The World Bank also supported a US$140 million Dhaka Urban Transport Project (DUTP), which closed in 2006. It included investments in the installation of traffic signals at 68 locations; improvements of 58 road junctions, 108 kms. of road pavement and 40 kms. of new sidewalks; rehabilitation of 3 inter-district bus terminals, making one of the main bus corridors free of cycle rickshaws[2] ; and construction of a 4-lane flyover in the city. Furthermore, along with the AQMP, the DUTP helped in the phase-out of air polluting baby taxis and their replacement with Compressed Natural Gas (CNG) fueled three-wheelers in January 2003, resulting in, approximately, a 30 percent reduction in daily average PM10 levels.

However, in spite of the past efforts to reduce air pollution, the level of particulate matter in Dhaka and other major cities has been steadily increasing in recent years due to an increase in economic activity and growth in vehicular population. High circulation commercial vehicle (primarily buses) and small industries (primarily brick kilns) have been identified as the major emitters of air pollution in and around cities. With Dhaka set to become one of the most populous cities in the world by 2020, the demand for transportation and utilization of bricks for building construction is likely to grow manifold, which in turn will drive the growth of local (such as PM10) and global (greenhouse gases or GHG) emissions, unless efforts are taken to address these sources of air pollution. While past efforts have set the monitoring system and promulgated new emission standards, the institutional and regulatory framework to plan, implement and monitor the growing causes of air pollution need to be further strengthened.

With closure of the DUTP in 2006 and impending closure of AQMP in December 2007, the GOB is faced with a challenge to sustain its efforts to control air pollution from key sources. It has requested World Bank support for a new project that builds on AQMP and DUTP. Both projects have provided useful lessons, particularly the need to: a) develop suitable technical approaches to reducing air pollution; b) focus on raising public awareness and developing a dissemination plan; c) strengthen the institutional framework and coordinating mechanism; d) allow a measure of flexibility in design and set reasonable targets. The Bank has considerable experience internationally in addressing these issues and can provide expert technical assistance, together with financial assistance to address the air pollution issues, while incorporating lessons of past experience. The Bangladesh Country Assistance Strategy (CAS) for 2006-2009 incorporates the need for interventions to address environmental issues including the reduction of human exposure to air pollution.

2. Proposed objective(s)

The project development objective is to catalyze the adoption of sustainable environmental initiatives in urban transport and small-scale industries with a focus on reducing air pollution, through pilot initiatives in cities.

Specific project performance indicators (to be developed further during preparation) will include: a) strengthening regulatory and institutional framework for air pollution control from urban transport and small scale industries (with a focus on DTCB and DOE respectively); b) improving mobility in Dhaka metropolitan area along pilot corridors (as measured by reduction in average travel time, increase in average travel speed, etc.); and c) adoption of cleaner technologies / processes in small scale industries (with a focus on brick making) leading to reduction in emissions as compared to the baseline.

3. Preliminary description

Specifically, the project aims to demonstrate a) effective regulatory and enforcement models; b) reduction of air pollution emissions from transport and industrial sources, and c) to strengthen institutional capacity for development, implementation and impact evaluation of outcome-oriented and cost-effective air quality management and sustainable transport programs. The development and implementation of these programs will be achieved through two project components, as explained below (cost estimates are indicative).

Environment Component (US$15 million): The component is aimed at strengthening the environmental agency’s capacity and capability to effectively address air pollution issues. This component will be prepared and executed by the DOE, in consultation with stakeholders from the key polluting sectors and sub-sectors. It will primarily provide support for the following:

• Capacity building for AQM: Infrastructure and technical assistance to the Air Quality Cell (AQC) at the DOE to develop and implement the DOE’s air quality management programs and initiatives. The AQC staff will be provided with training and state-of-the-art facilities, so that they can discharge their duties effectively and efficiently[3]. It will also include infrastructure for accommodation of the AQC at the DOE. The AQC will manage the implementation of the project subcomponent. Building on progress made under AQMP, this subcomponent will also support investment for air pollution monitoring (ambient, and emissions), calibration, data analysis, and reporting; finance strengthening the reporting, and use of AQ information (through the creation of an AQ Information System), outreach (via website and media), stakeholder consultations, and developing public alert systems.

• Brick Kilns Emissions Management: This subcomponent will focus on demonstration of a program to reduce local and global air pollution from one of the major polluting sub-sectors in Bangladesh. The long-term objective of this subcomponent is to set up a sustainable institutional mechanism for access to cleaner brick making technologies / processes. As regulations will be tightened and enforced, the demonstration program will provide technical assistance and facilitate access to finance for switching to more energy efficient and less air polluting processes and technologies. It will comprise the implementation of a package of interlinked activities that will include: a) review and update of emission standards, with a view to developing action plans with a realistic timeline for enforcing new/tightened emission standards; b) infrastructure, technical capacity and guidelines for stack emission monitoring necessary for having adequate information about compliance status; c) enhanced inspection and enforcement strategies (including more effective use of environmental license issue/renewal for enforcing compliance); d) technical assistance and outreach for target industries in collaboration with the brick industry association; e) using public information disclosure and performance rewards as a tool to facilitate compliance; f) facilitating access to financing for new technology / process, including carbon finance[4].

• Media Campaign for Clean Air: Highlighting the impact of local and global emissions from the key transport and industry sources, this campaign will be rolled out using all available media channels, in English and Bangla. It will contain targeted messages for different stakeholders, which will be delivered not only through the print and audio-visual media, but also through inter-personal channels. Social marketing tools will be used to address those issues that have socio-cultural roots. The media campaign will also serve as the tool for the GOB to reach out to different stakeholders and include them in the efforts to achieve the project objectives.

Transport Component (US$27 million): This component is based on the premise that improving traffic flow, reducing conflict between motorized and non-motorized traffic and improving bus operations can reduce its contribution to air pollution. It is designed to deliver tangible results in the short term, while helping plan for interventions in the long-term. The output of this component is envisaged as the reduction in air pollution from urban buses and improvement in mobility of people through pilot interventions in Dhaka, along the directions recommended by the Strategic Transport Plan (STP) of 2005. The development and execution of this project component will include a number of key stakeholders, which include the Ministry of Communications (MOC), the Bangladesh Road Transport Authority (BRTA), the Dhaka Transport Coordination Board (DTCB), the Dhaka City Corporation (DCC), the Dhaka Metropolitan Police (DMP), and bus owners and operators. It will comprise the following subcomponents:

• Physical improvement of traffic flow and pedestrian mobility in the short-term. This will include small investments in traffic engineering measures that are aimed at showing quick results in terms of improving traffic flow and movement of pedestrians, particularly where there is significant conflict between traffic and pedestrian movement leading to congestion and poor air quality. Investments will focus on foot over bridges, pedestrian paths, and traffic signals.

• Bus Route Network Rationalization and Franchising. The objective of this component is to rationalize bus networks and introduce competitive route contracting on a set of pilot routes. It will include studies related to a) analysis of alternatives; b) bus route rationalization and franchising; c) detailed design and preparation of tender documents for operation of low-polluting (i.e. CNG fuelled) and commuter-friendly (particularly for women) buses on a priority corridor[5]. In order to facilitate bus-priority operations this will include investments in bus bays, junction improvement, bus terminals, and pedestrian facilities. It is envisaged that this will encourage modal shift from existing transport modes to cleaner and safer transport modes on the corridor, and have a demonstration effect for the city in the long-term. In addition, this component will also include a study on other mass rapid transit options for Dhaka in the future, including Bus Rapid Transit (BRT).

• Institutional and regulatory reform. This is expected in the long-term to lead to establishment of a unitary authority for urban transport that can plan, implement, and coordinate a multi-modal urban transit system. As part of project preparation, it will include a review of the institutional and regulatory framework for public transport with the aim of a) providing a pivotal role to the DTCB in planning, implementation, and coordination of urban transport; and b) enabling bus sector reform, with a focus on route rationalization and franchising.

• Technical Assistance and Capacity Strengthening. This will include technical assistance and capacity building for a) public transport regulatory institutions (DTCB); b) design of traffic engineering and construction supervision (DTCB and DCC); c) traffic signal systems operation and maintenance (DCC); d) traffic management (DMP); and e) management of motor vehicle records (BRTA).

Project management (US$3 million): This component will finance the costs of project management (which will be anchored at the DoE) including consulting support, travel, workshops, equipment, and other costs necessary for project implementation, auditing and reporting.

Institutional arrangements for project preparation, management, and implementation: The project preparation will be undertaken by a multi-sectoral Project Preparation Team (PPT) anchored at the DOE, which will evolve into a Project Management Team (PMT) once the project becomes effective. In addition, during the preparation phase there will be a multi-sectoral project preparation supervision committee (PPSC) headed by the Director General DOE , which will evolve into a project management supervisory committee (PMSC) once the project becomes effective. The PPSC / PMSC will meet as and when required to provide advice and help with resolving conflicts. The PPT / PMT will be provided with consultant support during the preparation phase, and for a limited duration during project implementation. It is also proposed to have sector specific sub-committees, which would be set up to provide input to the respective project sub-components.

The Air Quality Cell (AQC) will implement the environment component. The Dhaka Transport Coordination Board (DTCB), acting on behalf of the Ministry of Communication (MOC), and the Dhaka City Corporation (DCC), which is under the Local Government Division (LGD) of the Ministry of Local Government, Rural Development and Cooperatives (MOLGRDC), will be the counterparts for implementing the transport component. (The DTCB needs to be empowered and strengthened while taking on the role of implementing agency). Technical assistance (TA) related to technology options for the brick industry will be delivered either through a financial institution and/or a quasi-government entity.

The project size is currently estimated to be approximately $45 million and envisaged to be financed primarily by IDA. It may seek to raise additional financing from bi-lateral[6] agencies such as the Norwegian Government, including the Global Environment Facility (GEF) and Carbon Finance (CF) for specific subcomponents. Some of the project components will build on preparatory work ongoing under the AQMP, and work already done under the DUTP.

4. Safeguard policies that might apply

|Safeguard Policies Triggered |Yes |No |TBD |

|Environmental Assessment (OP/BP 4.01) |X | | |

|Overall, the project will lead to positive environmental impacts due to the activities in all the three components as these are related to |

|better air quality management and sustainable environment. However, it is possible that certain sub-projects under the transport component |

|lead to incidental negative environmental impacts. Some of these sub-projects have been identified, whereas the others will be identified |

|during project implementation. The project needs to have a simple environmental management framework to prompt appropriate action in terms of |

|(a) including limited environmental assessment as part of the sub-project preparation studies, and (b) ensuring that any environmental plans |

|arising out of these limited EAs are appropriately incorporated in the contract agreements with the concerned sub-project proponent. |

|Natural Habitats (OP/BP 4.04) | |X | |

|Forests (OP/BP 4.36) | |X | |

|Pest Management (OP 4.09) | |X | |

|Physical Cultural Resources (OP/BP 4.11) | |X | |

|Indigenous Peoples (OP/BP 4.10) | |X | |

|Involuntary Resettlement (OP/BP 4.12) | | |X |

|For improving pedestrian mobility, the Dhaka City Corporation (DCC) has developed a list of possible locations for the construction of foot |

|overbridges (FOBs) and sidewalks. A survey is being carried out to (a) prioritize these locations; (b) crystallize the nature & type of FOBs |

|and sidewalks that are needed at the prioritized locations; and (c) enumerate the residences / shops / commercial establishments, hawkers, and|

|squatters who may be affected (partially or fully; temporary or permanently) during the construction and / or operation of the FOB and |

|sidewalk. Furthermore, this project will also pilot a bus priority corridor, which may affect livelihoods of the workers of displaced |

|transport services. A study will be carried out to assess potential reduction of livelihood of the transport workers. In all three cases – |

|FOBs, sidewalks, and bus priority corridor – the project will attempt to minimize any form of involuntary resettlement. |

|Safety of Dams (OP/BP 4.37) | |X | |

|Projects on International Waterways (OP/BP 7.50) | |X | |

|Projects in Disputed Areas (OP/BP 7.60) | |X | |

5. Tentative financing

|Source: |(US$m.) |

|BORROWER/RECIPIENT |5 |

|International Development Association (IDA) |35 |

|NORWAY: Norwegian Agency for Dev. Coop. (NORAD) |5 (TBC) |

| Total |45 |

6. Contact point

South Asia Sustainable Development

Room 1-015

70 Lodi Estate

New Delhi 110003

Phone: 91-11-41479336 (O) Fax: 91-11-24619393 Email: sakbar@

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[1] PM10 refers to particulate matter less than 10 microns in diameter that penetrates deep into the lungs.

[2] The rehabilitation of displaced rickshaw pullers was not completed satisfactorily under DUTP, and is now being undertaken as part of a poverty alleviation project. It is too early to assess its success.

[3] A World Bank’s carbon finance unit is already working with the brick making industry on an industrial energy efficiency improvement project.

[4] The corridor will be selected to ensure that there is minimum land acquisition and resettlement requirement.

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