Document World Bank
Public Disclosure Authorized
Document o f The World Bank
FOR OFFICIAL USE ONLY
Report No: 4 1414 CR
Public Disclosure Authorized
Public Disclosure Authorized
PROJECT APPRAISAL DOCUMENT ON A
PROPOSED L O A N INTHE AMOUNT OF US$72.5 M I L L I O N
TO THE REPUBLIC OF COSTA RICA
FOR THE CITY-PORT OF L I M O N PROJECT
November 27,2007
Sustainable Development Sector Management Unit Central America Country Management Unit Latin America and Caribbean Region
This document has a restricted distribution and may be used by recipients only in the performance o f their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
Public Disclosure Authorized
CURRENCY EQUIVALENTS (Currency Exchange Rate Effective)
Currency Unit = Colones (C.) lUS%=C,516 Colones
FISCAL YEAR
January 1 - December 31
ABBREVIATIONS AND ACRONYMS
ARESEP ARP
AYA APL BANHVI CAS CNC COREDES EA EAP EAR EMP ERR FEAP FLACSO GoCR IAPC IDB ICE IFAM MBIO INCOFER FM JAPDEVA
M&E MEIC MIVAH MoF MOPT PCU PDO PLCP PMU PPP RECOPE RPF SEAR SENARA SETENA SIGAF SIL SME UFCO WTP
Autoridad Reguladora de 10s Servicios Pliblicos (Public Services RegulatoryAgency) Abbreviated Resettlement Plan Acueducto y Alcantarillado (Aqueduct and Sewerage Company) Adaptable Program Loan The HousingBank Country Assistance Strategy Consejo Nacional de Concesiones (ConcessionNational Council) Consejo Regional de Desarrollo (RegionalDevelopment Council) Environmental Assessment Economically Active Population Environmental Assessment Report EnvironmentalManagement Plan Economic Rate o f Return PreliminaryEnvironmentalAssessment Worksheet Latin American Faculty o f Social Sciences Government o f Costa Rica InternationalAssociationo f Ports and Cities Inter-AmericanDevelopment Bank Instituto Costarricense de Elecricidad (Costa Rican Electricity Institute) Instituto de Foment0 y Asesoria Municipal (Municipal Development and CounselingInstitute) Instituto Nacional de Biodiversidad (National Institute o f Biodiversity) National Railway Company Financial Management Junta de Administracion Portuaria y de Desarrollo de la Vertiente Atlhntica (Port Authority and Development Agency for the Atlantic Slope Region) Monitoring and Evaluation Ministerio de Economia, Industria y Comercio (Ministry o f Economy, Industry and Trade) Ministerio de Vivienda y Asentamientos Humanos (Ministry o f Housingand Human Settlements) Ministry o f Finance Ministerio de Obras Pliblicas y Transporte (Ministry o f Public Works and Transport) Project CoordinationUnit
- Project Development Objective
Proyecto Limdn Ciudad Puerto (Limon City-Port Project) Project ManagementUnit Public-Private Partnership Refinadora Costarricense de Petroleo, S.A. (Costa Rican Petroleum Refining Company) ResettlementPolicy Framework Socio-EnvironmentalAssessment Report Sewicio Nacional de Riego y Avenarniento (Nacional Drainage & Flood Control Authority) Secretaria TPcnicaNacional Ambiental (National EnvironmentalAgency) Sistema Integrado de Adrninistracidn Financiera (Financial Management Information System) Sector Investment Loan Small and Micro Enterprises United Fruit Company Willingness to Pay
Vice President: Country Director: Sector Manager: Sector Manager: Task Team Leaders:
Pamela Cox Jane Armitage Laura Tuck Jose Luis Irigoyen Cecilia Corvalan, William Reuben.EmmanuelJames
COSTA RICA CITY-PORT OF L I M O N PROJECT
FOR OFFICIAL USE ONLY
CONTENTS
A. STRATEGIC CONTEXT AND RATIONALE.......................................................... 1 1. Country and sector issues ........................................................................................ 1 1.2 The City o f Limon................................................................................................... 4 1.3 The Port Sector and the Port o f Limon.................................................................... 6 2. Rationale for Bank involvement.............................................................................. 8 3. Higher-level objectives to which the project contributes ........................................ 8
B. PROJECT DESCRIPTION ......................................................................................... 9
1. Lendinginstrument.................................................................................................. 9 2. Proposed project development objective and key indicators................................... 9
3. Project components ................................................................................................ 10 4. Lessons learnedand reflected inthe project design .............................................. 11 5. Alternatives considered and reasons for rejection................................................. 13 C. IMPLEMENTATION ............................................................................................... 13 1. Institutional and implementation arrangements .................................................... 13 2. Inter-Institutional Implementation Agreements .................................................... 16 3. Monitoring and evaluation o f outcomes and results.............................................. 18 4. Sustainability ......................................................................................................... 19 5. Critical risks and possible controversial aspects ................................................... 19 6. Loan Conditions and Covenants ............................................................................ 21 D. APPRAISAL SUMMARY........................................................................................ 21 1. Economic and financial analyses........................................................................... 21 2. Technical ............................................................................................................... 23 3. Fiduciary ................................................................................................................ 23 4. Social ..................................................................................................................... 25 5. Environmental ....................................................................................................... 25 6. Safeguard Policies ................................................................................................. 27 7. Policy exceptions and readiness ............................................................................ 28
Annex 1: Country and Sector or Program Background..................................................... 30 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ..............32 Annex 3: Results Framework and Monitoring.................................................................. 33 Annex 4: Detailed Project Description.............................................................................. 43 Annex 5: Project Costs ...................................................................................................... 58 Annex 6: Implementation Arrangements .......................................................................... 59 Annex 7 : Financial Management and Disbursement Arrangements ................................. 68 Annex 8: Procurement Arrangements ............................................................................... 76 Annex 8, Table A: Thresholds for Procurement Methods and Prior Review.................... 81 Annex 9: Economic and Financial Analyses ..................................................................... 84 Annex 10 A: Environmental Safeguard Policy Issues....................................................... 99 Annex 10B: Abbreviated Resettlement Plan................................................................... 122 Annex 1OC: Resettlement Policy Framework ................................................................. 130
1
This document has a restricted distribution and may be used by recipients only in the performance o f
their official duties. I t s contents may not be otherwise disclosed without World Bank authorization.
Annex 11:Project Preparation and Supervision.............................................................. 134 Annex 12: Documents inthe Project File........................................................................ 136
Annex 13: Statement o f Loans and Credits ..................................................................... 137 Annex 14: Country at a Glance ....................................................................................... 138
Map IBRD 33392
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11
COSTA RICA CITY-PORT OF L I M O N PROJECT
PROJECT APPRAISAL DOCUMENT
LATIN AMERICA AND THE CARIBBEAN REGION
Date: November 27, 2007
Country Director: Jane Armitage
Sector ManagerDirector: Laura Tuck
Project ID: PO85539
Lending Instrument: SDecific Investment Loan
I
Y
Team Leaders: C. Corvalan, W. Reuben, E. James Sectors: Transport, Urban, Social, Water
Environmental screening category: B
For Loans/Credits/Others: Total Bank financing (US$m):72.5
BORROWER RECONSTRUCTION AND
Responsible Agency: Ministry o f Finance and Minister o f Inter-Institutional Coordination San JosC, COSTA RICA Tel: (506) 207 92 53
E-Mail: mvaraas@casapres.ao.cr zunigacg&hacienda.go.cr
Estimated disbursements (Bank FY/USSm)
FY Annual Cumulative
Y1 4.6 4.6
Y2 18.1 22.7
Y3 20.2 42.9
Y4 18.2 61.1
Y5 11.4 72.5
...
111
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