Brazil: Pernambuco Rural Water and Sanitation Project (PROSAR)

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The proposed Project is a US$113 million Investment Project Financing (IPF) operation, financed by a US$90 million IBRD loan and US$23 million in State counterpart funds. The Project will support the State’s higher-level goals of reaching universal WSS access; achieving the SDG reducing the public service and development gaps between urban and rural areas; slowing-down rural migration to urban areas and other states; improving the quality of life and health of rural population and their resilience to climate change risks. It will comprise three components:Component 1 – Increase access to climate-resilient, safely-managed RWS and improved sanitation (US$91.27 million of which US$68.27 million IBRD financing and US$23 million counterpart funds). This component aims at increasing rural population’s access to safely managed drinking water supply resilient to water scarcity, droughts and floods, and improved on-site sanitation solutions, thereby contributing to the State universal WSS access goal and increasing the rural population’s resilience to climate change exacerbated water scarcity, droughts and floodsSubcomponent 1.1 –Increase access to safely-managed RWS and improved on-site sanitation solutions with climate-resilient designs (US$69.50 million of which US$66.50 million IBRD financing and US$3 million counterpart funds). This subcomponent finances the feasibility studies, engineering designs, works and supervision of works of water scarcity, drought and flood resilient, safely managed RWS systems (climate resilient infrastructure design elements are discussed in the Technical Analysis section) and improved sanitation solutions in selected rural communities, including where required, in community health centers and schools. It will also finance feasibility studies and engineering designs of RWSS systems that will be implemented in subsequent projects. RWSS systems will have climate-resilient designs considering flood and drought risks, and will be ethnicity, race and gender sensitive. As a result, the activities are expected to support closing the gender gap by reducing the disproportionate burden of time spent by women beneficiaries on WSS related tasks in the Project areaSubcomponent 1.2 – Improve climate-resilience of water sources (US$20.80 million of which US$0.80 million IBRD financing and US$20 million counterpart funds). The subcomponent will increase water source resilience to climate risks and respond to IBRD’s ESF requirements on dam safety for RWSS subprojects financed under component 1.1. The subcomponent will finance: (a) works and their supervision to implement the Arataca II water conveyance system to increase the drought and water scarcity resilience of the Botafogo water system , by providing an alternative water source in case its current ones fail. This is fully financed with counterpart funds; and (b) instrumentation and basic maintenance identified in the safety action plans of the existing dams on which RWS financed under component 1.1. rely upon . No rehabilitation of existing dams nor construction of new dams will be eligible for financing. Subcomponent 1.3 – Innovate with climate-resilient, safely-managed RWSS pilot solutions for universal access (US$0.97 million, fully IBRD financed). The subcomponent will implement innovative technical and management pilot solutions to prepare for climate-resilient, universal access in those rural water supply market segments not covered by SISARs (especially small villages and scattered housing) and to transition fully to safely managed sanitation designed to be resilient to increased scarcity, floods and droughts (design elements detailed in the Technical Analysis section). Financed activities include development of studies and designs for water scarcity, flood and drought resilience, implementation of pilots, monitoring of results, evaluation for replicability and scalability, incorporation in RWSS strategy and investment plans and dissemination of results, including in RWSS strategy and investment plans developed under 2.1.Component 2 – Build the Borrower’s capacity to reach universal and climate resilient rural WSS access and sustainably managed RWS systems and their water sources (US$15.75 million, fully IBRD financed). This component aims at building the capacity of the public and private, not-for-profit entities (State, SISAR, community’s associations) that have a key role in delivering sustainable, safely managed, and flood and drought-resilient RWS and improved sanitation solutions to reach universal and climate-resilient accessSubcomponent 2.1 – Build the Borrower’s capacity to reach universal RWSS access and sustainably managed RWS systems (US$7.95 million, fully IBRD financed). This subcomponent will finance: (a) the establishment of SISARs’ in six regions , including through activities such as the drafting and implementation of the SISARs capacity building and business plans, the refurbishment and equipment of their office buildings considering climate dimensions and acquisition of vehicles; (b) the improvement and expansion the Borrower’s RWSS information system, including collection of in-situ data; (c) the development and initial implementation of the Borrower’s climate-resilient, universal access WSS strategy and regional plans ; (d) a sludge management study of alternatives; (e) the strengthening of the Borrower’s dedicated RWSS capacity to deliver technical assistance to the SISARs and the community associations through training, equipment and consultant services; (f) the improvement of the Borrower’s monitoring and evaluation of the SISARs’ performance; and (g) the strengthening of the rural communities’ capacity to, inter alia, promote hygiene, the rationale use of water in drought and water-scarce situation and sanitation solutions. To increase women voice and increase their access to paid work, trainings will prioritize women participation at community level and the Project will promote their participation in management and decision-making.Subcomponent 2.2 – Strengthen the resilience of the Borrower’s RWS systems’ water sources under climate risks (US$7.80 million, fully IBRD financed). This subcomponent, in complement to the system-specific activities supported under subcomponent 1.2, aims at strengthening the resilience of the State’s RWS system’s water sources against climate risks. More specifically, it will: a. Increase APAC’s capacity to carry out its water resources management (WRM) and São Francisco inter-basin transfer (PISF) O&M and regulation functions where they will contribute to secure rural water sources. This includes, inter alia: (i) the construction or renovation and equipment of APAC’s headquarters and two regional offices to increase its presence in the field and its working environment taking into account climate dimensions; (ii) the promotion of a public awareness campaign to increase water users’ registration and water rights emission; (iii) the development of hydrogeological studies of sedimentary aquifers to identify drought resilient sources; (iv) the strengthening of hydromet monitoring to better manage rural water sources, improve drought and flood forecasting and climate projections; (v) the development of a state-wide drought preparedness plan, (vi) the carrying out of feasibility studies for urban riverfront park to improve riverfront public access and recreational use as well as improve river and banks ecological state; and (vii) the design and implementation of hydraulic infrastructure and sanitation planning platform. b. Increase SESAN’s and APAC’s capacity on dam safety and resilience to extreme flood events, including through (i) the preparation or update of dam O&M plans, dam safety plans and emergency preparedness plans; (ii) the evaluation of dam safety status; (iii) a risk-based inventory of dams in the Borrower’s territory; and (iv) the adoption of risk management approaches and tools; as well as staff training.Co