PROJECT INFORMATION DOCUMENT (PID)

CONCEPT STAGE

Report No.: AB2341

Project Name / National Environmental Management and Conservation Project
Region / Latin America and the Caribbean Region
Sector / Environmentally and Socially Sustainable Development Sector Management Unit (LCSES)
Project ID / P090114
Borrower(s) / Government of Venezuela
Implementing Agency / Ministry of the Environment and Natural Resources (MARN)
Environment Category / [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined)
Date PID Prepared / April 19,2006
Estimated Date of Appraisal Authorization / August 2006
Estimated Date of Board Approval / October 2006

1.  Key development issues and rationale for Bank involvement

In 1974, Venezuela created the first Ministry of Environment of the region. Since then, its institutional capacity has evolved considerably to about 8,000 employees in more than 20 specialized agencies and 24 state environmental agencies (Direcciones Estatales Ambientales DEAS). In addition, agencies reporting to the Ministry of Environment (MARN) include, among others, ten public companies for regional water supply and sanitation services, the national park service, forestry institutions, the geographic information agency, biodiversity institutions, and five regional water resources agencies. However, environmental challenges continue to grow and addressing them has become a key challenge and a major component of the development agenda of the Government: ensuring sustainable growth, alleviating poverty and ultimately improving quality of life. The Government of the Bolivarian Republic of Venezuela has a sound strategy to resolve priority environmental problems and has requested the Bank to support specific areas of its strategy.

Venezuela is one of the most biologically diverse countries in the world. While it has one of the highest rates of endemism in South America, with 38% of its 21,070 vascular plant species being endemic, it has over 100 animal species considered to be vulnerable or in danger of extinction. The impact of agricultural expansion and forestry activities has led to significant impacts, including annual forest loss rates which double the average in the region. While 15.4% of the national territory is considered protected, most national parks still lack adequate resources and management capacity and many are under high stress due to agriculture expansion and urban growth. In addition, the country lacks updated forestry data, and there is limited capacity to monitor deforestation and develop sustainable forestry management activities.

Venezuela is heavily forested with extensive areas of tropical rainforest and tropical moist deciduous forests, as well as smaller areas of montane, cloud forests and mangroves. Proxy estimates of forest cover show the country with about 47 million ha of forests in 2005, equivalent to 54 percent of its national territory. Rough estimates of deforestation at the national level are high at 288,000 ha annually, or 0.6 percent per year. However, reliable and up-to-date information needed for the strategic planning of the sector is lacking and the country presently relies on extrapolations from information based on 15-year old satellite images with limited field checks and ancillary data sources.

The environmental urban agenda, particularly its relationship with health-related problems and poverty alleviation is becoming one of the most important and visible issues in a Country with nearly 90% of urban population. Main urban environment issues derive from the following facts: (i) 22% of urban population, mostly poor, lack access to sanitary-safe drinking water; (ii) more than 25% lack adequate sanitation services; and, only 22% of solid waste is disposed safely in sanitary landfills; and (iii) less than 10% of wastewater is treated or disposed safely. In addition, enforcement of regulations for disposal hospital and hazardous waste is weak. Data on air quality is fragmented and insufficient to diagnose the overall impact of air pollution on health, but experience elsewhere in the region suggest that negative impacts are high given the characteristics of the transport sector and the price and quality of the fuel. Furthermore, water quality is substandard and deteriorating in key watersheds which supply some of the most populated cities of the country, including Caracas, Valencia and Maracay[1].

The proposed environment management project aims to strengthen the capacity of the MARN to address priority issues and build on the experience gained and lessons learned in previous Bank supported projects, namely the National Environment Management Project (PNGA), and the National Parks Project (INPARQUES). MARN and the Bank have worked for the past several months and have identified a project with the following four components: (i) Urban Environmental Management, including priority interventions in solid waste management and improvements in monitoring environmental quality; ; (ii) Conservation of Natural Resources including priority interventions in biodiversity refuges, forestry management, and strengthening the national parks system; and (iii) institutional development, including priority actions to support the state environmental agencies, and overall capacity building. Air and water quality, while considered priority, are already been addressed by MARN.

The proposed project follows MARN’s priority action plan of February 2005 and supports priority lines of action identified or under implementation by the Ministry. It is also consistent with the interim CAS (2003-2005) in that it would: (i) support sustainable development in the country; (ii) mainstream environmental concerns in public policy; (iii) develop institutional and technical capacity, including enforcement of environmental regulations; and (iv) increase local participation in public decision making. Furthermore, the proposed operation will complement other activities carried out by MARN (with its own resources) and with external financing, such as the environmental management project financed by Andean Finance Corporation (CAF).

In addition, the proposed project is expected to complement the GEF Canaima National Park project (VE-GEF Expanding Partnerships for the National Park System Project - P085458). Synergies between the two projects will be attained through the overall strengthening of the national park system, and through the replication of successful experiences achieved in the Canaima National Park into other parks and protected areas.

The proposed Environmental Management Project will directly support the Country’s objectives to meet the Millennium Development Goals (MDGs) by addressing the link between environmental health and poverty alleviation (MDG 4 and 6 Health) as well as promoting environmental sustainability (MDG 7), particularly by integrating the principles of sustainable development into country policies and programs and reverse the losses of natural resources.

2.  Proposed objective(s)

The development objective of proposed project is to improve and strengthen environmental management in Venezuela and support the capacity of the Ministry of Environment (MARN) and its associated agencies to address the most pressing issues of the environmental agenda. The key areas that the proposed loan will address: (i) improvements in urban environmental management; (ii) natural resources and biodiversity conservation efforts; and (iii) provide institutional and technical development.

3.  Preliminary description

Attainment of concrete environmental improvements and building capacity is a process that requires time. Consequently, the borrower has shown interest in implementing an approach to address key areas in the short to medium-term horizon to help build the technical and institutional capacities and address the priority environmental issues. This project will support priority activities that are in an advanced stage of definition from previous missions and technical exchanges. . The proposed project will be characterized by its spatial nature and in that it will integrate various different sectors and issues in different regions of the country, but with a special emphasis to eastern part of the country.

The proposed project to be implemented by MARN, encompasses the following components:

I. Urban Environmental Management. This component will focus in addressing key environmental issues in urban areas, including the following sub-components:

1. Solid Waste Management: The project will support: (i) Building sanitary landfills and transfer station in pre-selected areas; (ii) improving solid waste dumping sites; and (iii) construction of a center for processing hazardous and hospital wastes;

2. Support to Environmental Quality Monitoring: through technical capacity and equipments for national environmental quality laboratories.

II. Natural Resources Management and Conservation.

1. Biodiversity Conservation: through the creation of three refuges for wildlife (location TBD during pre-appraisal);

2.  National Parks: This subcomponent will aim at the consolidation of 5 (pilot) national parks with their respective action plans. In addition, this subcomoponent will seek the support for at least 2 recreational parks (parks TBD during pre appraisal).

3.  Forestry: The subcomponent will develop a new national forest inventory, which would generate forest maps, statistics and information needed for the overall management of the forest sector, including utilization and conservation. The subcomponent would also create a new national forest inventory unit and strengthen the institution so that it could continue with periodic updates and forest monitoring after project closure.

III. Institutional Development

1.  Institutional strengthening at the regional level (US$4.1M) through capacity for environmental management of the State Environmental Directorates (DEAS). This subcomponent will foresee the following activities: (i) diagnosis of the current status of capacity (personnel, equipment, training, etc.) of the DEAS and of MARN; (ii) carrying out technical assistance (general and some cases tailored to the DEAS needs); (iii) equipment; and (iv) strengthening the state action plans.

4.  Safeguards policies that might apply

Given the potential for works (sanitary landfills), environmental quality labs, etc. the Environmental Assessment (OP/BP 4.01) will apply. The Project does not foresee any kind of involuntary resettlement. The following safeguards will have to be determined as project preparation moves forward: (i) natural habitats; (ii) forests; and (iii) pest management.

5.  Tentative financing

Source: / ($m.)
BORROWER / 20
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT / 40
Total / 60

6.  Contact point

Contact: Renán Poveda

Title: Senior Environmental Specialist

Tel: (51 – 1 ) 615-0660

Fax: (51 – 1) 421-7241

Email:

[1] While both, air and water quality are priority issues, MARN is addressing them through different programs (i.e. bilateral agreement with PDVSA).