The World Bank Sao Paulo Aricanduva BRT Corridor (P169140) Project Information Document (PID) Appraisal Stage | Date Prepared/Updated: 23-Dec-2019 | Report No: PIDA27442 Dec 04, 2019 Page 1 of 13 The World Bank Sao Paulo Aricanduva BRT Corridor (P169140) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) Brazil P169140 Sao Paulo Aricanduva BRT Corridor Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) LATIN AMERICA AND CARIBBEAN 20-Jan-2020 24-Mar-2020 Transport Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Municipality of São Paulo Sao Paulo Municipal Secretariat of Urban Infrastructure and Works, Sao Paulo Municipal Secretariat of Mobility and Transport Proposed Development Objective(s) The Project Development Objective is to improve mobility and accessibility to jobs for socially vulnerable public transport users in the influence area of the Aricanduva Corridor and to enhance operational efficiency of the Sao Paulo city bus system. Components Development of high quality BRT corridor in a socially vulnerable area Upgrading of the bus operational control center Project management and capacity building on transport planning and policies PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 121.00 Total Financing 121.00 of which IBRD/IDA 97.00 Financing Gap 0.00 DETAILS -NewFinEnh1 Dec 04, 2019 Page 2 of 13 The World Bank Sao Paulo Aricanduva BRT Corridor (P169140) World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 97.00 Non-World Bank Group Financing Counterpart Funding 24.00 Borrower/Recipient 24.00 Environmental and Social Risk Classification Moderate Decision The review did authorize the team to appraise and negotiate B. Introduction and Context Country Context Brazil is on the recovery path from the worst economic crisis of its modern history, yet public investment is highly constrained by the fiscal deficit. Brazil’s GDP contracted by 3.5 percent and 3.3 percent in 2015 and 2016 respectively, marking the deepest recession in modern Brazilian history. The economic recovery has been slow with growth at 1.1 percent in both 2017 and 2018 and 1.5 percent projected for 2019. The unsustainable trend of rigid public expenditures and a cyclical decline in revenues resulted in general government gross debt rising from 51.5 percent of GDP in 2013 to 78.4 percent by March 2019 and the fiscal deficit remained high at 7.4 percent of GDP in 2018. To address this debt dynamic, the Federal Government adopted a constitutional amendment to limit federal public expenditure growth to the rate of inflation. The fiscal deterioration led Brazil to lose its investment grade rating in August 2015, with a further reduction to BB- (S&P and Fitch) in early 2018. Rollover risks are mitigated in the near-term as net debt (53.8 percent in 2018) remains significantly lower than gross debt and exposure to foreign-currency debt is just 5.9 percent of GDP. The difficult fiscal position extends to subnational governments. The recent recession affected the States and Municipalities across the country, with many of them experiencing fiscal distress. Public expenditure, mainly on wage bill and public pension entitlements, grew as a result of pro-cyclical fiscal rules and growing demand for public services. When revenues collapsed, and federal transfers diminished because of the recession, liquidity constraints became binding. Despite efforts to trim public investment and reduce non-essential current spending, expenditure commitments continue to grow, creating widespread financing gaps and arrears with service providers and civil servants. Fiscal constraints have limited long-term financing for infrastructure investments, and the country has fallen behind in the stock of physical infrastructure, particularly in the case for urban infrastructure. Many cities in Brazil, including São Paulo, are among the most productive in the region, with their productivity generally on par with the world average. Yet, they lag behind the world productivity "frontier", as measured by North American and Western European cities. Addressing the negative externalities of congestion, slums, crime, and inequalities is essential to improve agglomeration economies in Brazil with a very high urban population ratio of 87 percent in 2018. For example, six Brazilian cities are among the 100 most congested in the world. While investments in urban Dec 04, 2019 Page 3 of 13 The World Bank Sao Paulo Aricanduva BRT Corridor (P169140) infrastructure and services are still crucial to improve the productivity of Brazilian cities and boost long-term economic growth, as private investment is expected to remain weak and fiscal constraints have restricted the availability of credit, there are significant needs for long-term financing of infrastructure. Brazil is vulnerable to climate change and is committed to addressing climate change as evidenced in its Nationally Determined Contribution (NDC) and National Adaptation Plan. The climate projections indicate a rise in temperatures of 1.7 to 5.3C by 2085 over much of the Amazon region. The total annual hot days of temperature above 35C are expected to rise by 55.8 days in 2050 and such a change could bring intense rainstorms and increased flooding particularly in urban areas. Meanwhile, as part of its NDC, Brazil intends to reduce greenhouse gas emissions by 37 percent below 2005 levels in 2025 and 43 percent below 2005 levels by 2030. The Federal Government of Brazil prepared the National Adaptation Plan in May 2016, which aims to promote the reduction and management of climate risk in 11 sectors, including transport and urban-mobility. The São Paulo Metropolitan Region (SPMR) is the most important economic region in Brazil with more than 20 percent of its GDP, but rapid urbanization has resulted in uncontrolled urban sprawl exacerbated by social problems including crime and unemployment. The SPMR has seen a large population growth over the past decade, a 10 percent increase since 2010. It is home to about 21.6 million people spread irregularly over 8,000 square kilometers in 39 municipalities of which about 12 million live in the São Paulo Municipality. Out of the 26 metropolitan regions in Brazil, the SPMR has the highest population density (ca. 2,930 inhabitants per square-km) and the fourth highest share of people living in slums (9 percent). While São Paulo has, overall, the highest Human Development Index (HDI) among metropolitan regions in Brazil (0.79), it displays significant disparities across neighborhoods, HDIs ranging from 0.96 down to 0.70. A São Paulo city faces a huge social inequality with 1.3 million people out of 12 million population under the international poverty line1. The city has a significant number of socially vulnerable population in a highly unequal society in which the poorest 40 percent live on income that is well below one minimum salary per capita. As of 2017, the poorest 20 percent of the municipality was living on an average income of R$ 375 per month per person, and the next quintile was living on R$ 7832, still lower than the minimum salary of R$ 937 in the same year. On the other hand, the top 20 percent was living on an average of R$ 8,116 per month per person. This stark difference in incomes translates into a high Gini coefficient of 57.1 within the municipality, which is much higher than the country-level value of 53.33 and consistently among the highest in the Latin America region. A poverty rate at the US$5.50 per day line is 10.7 percent or 1.3 million people in the city. Furthermore, more than 388,000 families live in urban slums (favela), informal communities without official land titles. Sectoral and Institutional Context São Paulo is the fifth most congested city in the world4 and traffic congestion costs the city about eight percent of the metropolitan area GDP in 2013 equivalent, or more than one percent of Brazil’s GDP5. This situation has been compounded by growing motorization rates (8.9 million cars registered in São Paulo municipality, a 27 1 US$1,90 per day 2 World Bank calculations based on SEDLAC, for 2017 3 World Bank calculations based on SEDLAC, for 2017 4 INRIX 2018 Global Traffic Scorecard (http://inrix.com/scorecard). 5 Nota Técnica, Diretoria de Desenvolvimento Economico #3, July 2014 (FIRJAN) Dec 04, 2019 Page 4 of 13 The World Bank Sao Paulo Aricanduva BRT Corridor (P169140) percent increase from 2010). On average, each driver in São Paulo spends 154 hours in traffic jams annually. These substantial economic costs are also linked to productivity losses, GHG emissions, and local air pollution. In 2013, motorized urban mobility was responsible for 14.7 million tons of CO2 equivalent emissions, 51 percent from cars and 13 percent from public transport buses. Local pollution has also dire consequences on health as a 2016 study showed that, if WHO standards of PM2.5 (10 μg/m3) were met, São Paulo would avoid more than 5,000 premature deaths (equivalent to 266,486 life years’ gain) and save US$15.1 billion annually.6 Costs related to traffic congestion adversely impact the economic development and productivity growth of the metropolitan region and tend to have a disproportionate impact on the poor, commuting by public transit from remote metropolitan areas. The public transport network, consisting of metro, suburban railways and buses, plays a key role in urban mobility in the SPMR and substantial investments have been made over the past decade, mainly on the rail network. The SPMR is served by railway and an extensive bus network. The railway network includes 97 km of metrorail (including monorail) and 273 km of suburban rail system, operated by two companies owned by the São Paulo State government: São Paulo Metro and Companhia Paulista de Trens Metropolitanos (CPTM), and two private companies operating Metro Line 4 and Line 5 under concession agreements. Meanwhile, the bus systems are managed mainly by the two public companies7: (i) SPTrans, a company owned by the São Paulo Municipal Government (SPMG), which manages city buses within the São Paulo municipality through concession to the private sector for 1,336 bus routes served by about 15,000 buses covering 4,500km of the road network, and (ii) Empresa Metropolitana de Transportes Urbanos de São Paulo (EMTU), a company owned by the São Paulo state which manages the intermunicipal buses. In spite of the broader geographical coverages of the bus systems, most investment efforts have focused on rail-based transport: 45 km of new rail-based (metro, monorail) infrastructure have been developed in the past decade. The passenger demand on public transport has been stable over the last decade, while the number of bus users has decreased slightly. The SPMR had around 41.5 million person-trips daily in 2017, out of which 37 percent were undertaken by public transport8. This proportion has remained rather stable since 2007. In parallel, private motorized transport increased two percentage points, while active modes decreased in the same proportion. Yet, the overall public transport ridership over the past decade masks two opposite trends: from 2007 to 2017, metro and suburban rail systems has increased their passengers by 55 percent, whereas bus ridership has decreased by five percent. However, buses still carry almost twice as many people as metros and trains in São Paulo: 9 million daily person-trips in 2017, compared to 4.7 million daily person-trips with Metro/CPTM systems. The levels of bus service quality have worsened and the operational costs and subsidies from the Municipal Government of São Paulo (MGSP) to the bus operators have significantly increased. Over the past decade peak- hour bus commercial speed has dropped by 30 percent, leading to increasing commuting times. In 2018, average peak-hour bus commercial speed in São Paulo was 16 km/h, which is low from the perspective of users, with a significant gap between mixed-traffic bus routes (8 km/h) and segregated corridors (21 km/h). Meanwhile, the total costs to operate the bus system in São Paulo rose by 26.2 percent in real terms from R$ 6.45 billion in 2006 to R$ 8.14 billion per year in 2018 mainly due to high labor and fuel costs, partially driven by the lower operating speed. Furthermore, the MGSP expanded a discount policy for students in 2015 and compensates for the loss of the operators. As these factors cannot be fully covered by the tariff revenue despite of a continuous tariff increase in the last decade, the municipality had to increase its operator subsidies from R$ 588 million in 2006 (adjusted by inflation) to R$ 3.02 billion in 2017. 6 Karina Abe, Simone Miraglia, 2016. Health Impact Assessment of Air Pollution in São Paulo, Brazil 7 There are also city bus systems managed by other municipalities than São Paulo within the SPMR, such as Guarulhos, etc. These buses are operated only within each city. 8 All data in this paragraph are based on Origin Destination Survey by São Paulo Metro in 2017. Dec 04, 2019 Page 5 of 13 The World Bank Sao Paulo Aricanduva BRT Corridor (P169140) The city bus system is not yet fully integrated with Metro/CPTM and intermunicipal buses as one public transport system. The state-operated railways (Metro and CPTM) and intermunicipal bus (EMTU), and the municipality-operated city bus (SPTrans) have developed their own strategies, plans and policies, leaving space for better coordination and integration. For example, the route planning of the city buses is not always well coordinated with the Metro lines. The tariff structure is independent, and a passenger incurs additional costs for traveling over two systems although there is a discounted fare between SPTrans and Metro/CPTM. Meanwhile, there is no discount between SPTrans and EMTU except at a few bus terminals. There is a need to improve physical integration among the systems through, for example, provision of facilities for people with disabilities (universal access), elevators, escalators, ramps, etc., at transit locations. Facilitating accessibility to jobs through improved public transport services is one of the biggest enablers to reduce social inequality, in particular for socially vulnerable people. Socially vulnerable groups, such as lower- income population, is unevenly concentrated in the peripheral areas of the city and most struggle with long commuting trips to the city center where most of the jobs are located. Recent research indicates that “increasing accessibility by public transport through either expanding transit services to areas with high informality rates or having better access to formal jobs … may be away to achieve reductions in informality rates, especially among those earning less than the minimum wage�9. To support socially vulnerable groups financially, a flat fare structure of public transport has been introduced, without variations by distance, together with targeted discounts for students, elderly people, people with disabilities and formal employees. The Bank’s analysis indicates that the public transport expenditure accounts only for 5.7 percent of the household income even for the lowest income decile population in the São Paulo city and even less for higher income levels. In order to improve urban mobility, MGSP prepared the Urban Mobility Plan in 2015, including an ambitious plan to expand exclusive or segregated bus lanes10 and Bus Rapid Transit (BRT)11 corridors as well as the bicycle lanes. The objectives of the plan include, among others, (i) promoting universal access (facilities for people with disabilities) for public transit; (ii) improving accessibility to the municipal urban transport systems; (iii) promoting non-motorized modes; (iv) reducing the number of traffic accidents and deaths; (v) reducing average travel time; (vi) expanding the use of mass transit; (vii) reducing vehicle emissions; and (viii) contributing to reducing social inequalities. The 2015 São Paulo mobility plan sets the objective to build 1,460 km of the exclusive or segregated lanes in total with 565km of prioritized corridors to be constructed by 2028. Based on the mobility plan, the MGSP is building 173km of bicycle lanes in the next two years to promote use of bicycles and reduce road safety risks for bicyclists. Furthermore, the 2019 Municipal Bicycle Plan aims at expanding the bicycle lane network from 506km to 1,800 km by 2028. The proposed project is a priority of the Urban Mobility Plan and will develop one of the most advanced BRT systems in Brazil and a high-quality bus service on the Aricanduva Corridor as an integral part of public transport network in the eastern part of the city. The 14-km Aricanduva Corridor is a critical piece of the public transport network connecting Metro Line 3 and CPTM (suburban rail) Lines 11 and 12 at the Carrao station, and the ABD 9 “Informality and accessibility to jobs by public transit: Evidence from the São Paulo Metropolitan Region� by Boisjoly, Moreno - Monroy, and El-Geneidya). 10 The São Paulo city currently has 130 km of segregated bus corridors and 484 km of exclusive bus lanes. As a part of the segregated bus corridors, an elevated Bus Rapid System (BRT) was constructed on the Tiradentes Express corridor (8.6km). The other BRT corridor in SPMR, ABD Corridor connecting between the São Paulo municipality and neighboring cities with an extension of 33km, is operated by EMTU. 11 Definition of BRT is not standardized but could be described as a high-quality bus-based transit system that delivers fast, comfortable, and cost-effective services approaching metro-level capacities. It does this through the provision of dedicated lanes or busways and iconic stations typically aligned to the center of the road, off-board fare collection, and fast and frequent operations. (ITPD) Dec 04, 2019 Page 6 of 13 The World Bank Sao Paulo Aricanduva BRT Corridor (P169140) metropolitan BRT at Sao Mateus. Furthermore, it will connect Metro Line 15 at Sao Mateus, a monorail under construction, and, in the long term, Metro Line 212, underground rail line extension under planning. The corridor currently has 31 bus routes with 293,000 daily bus passengers daily on average. The bus vehicle volume is 115 per hour in the morning peak. The planned BRT with the advanced features, such as segregated lane, and off-board fare collection, will allow a major improvement in the operating speed from 18 km/h to 25km/h, the fastest among the city bus system. The BRT corridor will be fully integrated into the existing city bus system, that is, it will be operated as one of the traditional city bus routes in terms of the tariff structure, and there is no additional or separate fare for this BRT. The proposed Project will improve the accessibility to jobs and services for one of the lowest-income and most socially vulnerable communities in the São Paulo city where 52% of the population, including 29,000 households in urban slums, are highly socially vulnerable with low accessibility. The area of influence of the Aricanduva corridor serves some of the most socially vulnerable neighborhoods with more than 1.2 million people and 24 percent and 28 percent of the population are classified as highly and very highly socially vulnerable respectively13. Such social vulnerability has worsened, between 2013 and 2018, when the lower-income population registered in CadUnico14 jumped from 85,303 to 197,076, a 131 percent increase in the area of influence of the corridor. Accessibility to jobs and services is much lower for households located in the area than the average in SPMR. For instance, travel distances are on average 25.3 km and trips take on average 102 minutes for residents in the area of influence of the project compared to 14.4 km and 62 minutes for the average SPMR resident. The proposed BRT will provide better mobility and accessibility to jobs to these communities and contribute to reduction in social inequality in the area. The project will pay a special attention to women and people with disabilities (PWD) who often face challenges while using public transport. According to the existing research15, 46 percent of Brazilian women over 18 years have reported not to feel safe using public transport, mainly due to potential violence and abuses against women at both bus stops and vehicles. Also, people with disabilities face physical difficulties to access bus service as most of bus station facilities and accesses to these bus stations have not been designed with sufficient consideration of the universal access concept, which ensures accessibility for people with disabilities to public facilities, though the federal law requires universal access to public bus services and the MGSP adopted the universal access guideline for public facilities and buildings16. Accordingly, the Project will improve security of the BRT stations and vehicles and ensure universal access to all the BRT stations along the corridor. Improving the quality and efficiency of bus operation in the Aricanduva corridor will require not only new infrastructure and equipment, but also enhancing the existing management and monitoring capacity of the MGSP, including SPTrans. SPTrans oversees private bus operators under concession and monitors their operational performance through its bus Operation Control Center (OCC). However, the current platform of the OCC does not have the required capacity for monitoring key service performance indicators effectively and in real 12 While the detailed route and stations of Line 2 have not been defined, there would a connection between the Aricanduva BRT and the extended Line 2 around Vila Nova Manchester. 13 According to São Paulo Social Vulnerability Indicator developed by the São Paulo State, which is an index combining socioeconomic and demographic factors of each household, such as income per capita, percentage of the household member with income below the half of the minimum salary, percentage of literate household members, percentage of young member between 10-29, etc. The index classifies the five categories of social vulnerability: very low, low, medium, high, and very high. 14 CadUnico is a public registration system for those who require any social assistance from the government. 15 Patricia Galvão Institute 16 Technical instruction for accessibility for architecture design, Municipal Secretariat of People with Disabilities: https://www.prefeitura.sp.gov.br/cidade/secretarias/upload/pessoa_com_deficiencia/manual%20acessibilidade.pdf Dec 04, 2019 Page 7 of 13 The World Bank Sao Paulo Aricanduva BRT Corridor (P169140) time17 - for example, punctualities of bus lines and completion of the bus trips. This limitation makes it difficult to improve a current poor service quality of bus operation, concretely only 60 percent of the city buses depart on- time and 7 percent of the planned bus trips even do not arrive at the final destination. The proposed Project will introduce state-of-art technologies in the OCC that will enable it to measure critical service performance indicators to be introduced under the new concession contracts and facilitate provision of better quality of service to city bus users. The MGSP signed new concession contracts with bus operators18 for its entire city bus operation in September 2019. The new concession contracts will introduce critical performance indicators linked to remunerations to bus operators, such as number of trips completed, punctuality of operations, response time of incidents, etc., which are expected to contribute significantly to improving the service quality of the city bus operation. The Project will upgrade the OCC platform with the most advanced data processing capacity so that it can monitor these new indicators in real-time for all the 15,000 bus vehicles and contribute to enhanced effectiveness and service quality of bus operation in the whole city. While road traffic injuries are a large burden in São Paulo, the road safety risk for all road users will be reduced by the construction of segregated BRT and bicycle lanes along the Aricanduva corridor. In 2018 there were around 850 deaths or 6.56 deaths per 100,000 people in the city. This is lower than other Brazilian cities but worse than similar middle-income cities in other countries. In 2019, the city introduced a road safety plan called Vida Segura, officially adopting Vision Zero and setting a goal of reducing traffic fatalities by 50 percent in ten years. Eight people have lost their lives in traffic crashes, and 176 have been injured along the existing Aricanduva Avenue between 2015 and 2018. The project will physically segregate BRT vehicles from other traffic modes so that the higher velocity of the BRT will not impact road safety. Furthermore, the project will improve safety for pedestrians and bicyclists by constructing segregated bicycle lanes and improving sidewalks. C. Proposed Development Objective(s) Development Objective(s) (From PAD) The Project Development Objective is to improve mobility and accessibility to jobs for socially vulnerable public transport users in the influence area of the Aricanduva Corridor and to enhance operational efficiency of the Sao Paulo city bus system. Key Results • Number of formal job opportunities reachable by public transport from the area of influence of the Aricanduva BRT Corridor within a 90-minute one-way commute (number); • Daily bus passenger ridership on the Aricanduva BRT Corridor (number); (Sub-indicators) ▪ Change in female bus ridership on Aricanduva BRT Corridor (percentage); ▪ Change in male bus ridership on Aricanduva BRT Corridor (percentage); ▪ Change in bus ridership of socially vulnerable users on Aricanduva BRT Corridor (percentage); 17 Under the current system, it is necessary to download the data at the end of each day and to process manually through other software. 18 The new framework will include the three types of the operation: (i) trunk routes, (ii) regional link, and (iii) local distribution. Each type is further divided into 9 to 13 zones and 31 concession contracts in total. Dec 04, 2019 Page 8 of 13 The World Bank Sao Paulo Aricanduva BRT Corridor (P169140) ▪ Change in bus ridership of non-socially vulnerable users on Aricanduva BRT Corridor (percentage); • Change in satisfaction score of the socially vulnerable bus users along Aricanduva BRT Corridor (percentage); • Change in satisfaction score of female bus users on security along Aricanduva BRT Corridor (percentage); • On-time departures of São Paulo city buses (percentage); and • Scheduled São Paulo city bus trips that are not completed (percentage). D. Project Description The proposed Project will assist the MGSP in developing a BRT system on the Aricanduva corridor and enhancing the capacity for managing performance of municipal bus operations within the entire São Paulo city. The Project is a US$121 million operation with the below three components financed by a US$97 million IBRD loan and by US$24 million in counterpart funds. Component 1 – Development of a high-quality BRT corridor in a socially vulnerable area (US$103 million, of which US$83 million will be financed by the IBRD loan and US$20 million from counterpart funds) Sub-Component 1.1: Construction of a BRT system on the Aricanduva Corridor. The component will assist the Municipal Secretariat of Urban Infrastructure and Works (SIURB) in delivering the civil works and equipment of the BRT infrastructure along the 14km-long Aricanduva corridor. The works will include construction of, among others, segregated BRT lanes, 22 BRT stations, intelligent traffic lights, local corridor operation system, energy- efficient public lights, and other associated facilities. All the stations will include high floor boarding platform, the fare collection system, ticketing machines, security cameras, automated boarding doors, user information display, access facilities for people with disabilities following a universal access concept. Some stations will have bicycle parking. Since the addition of the BRT lanes requires the re-configuration of the entire right of way, the works will also install and rehabilitate, among others, mixed traffic lanes, bicycle lanes, sidewalks, pedestrian bridges, drainages with higher resilience to flood, landscaping and vegetation, and utilities such as electricity lines, phone cables, and gas/water pipes as necessary. Engineering supervision and environmental and social monitoring for the civil works and equipment installation will be included as well. Sub-Component 1.2: Land expropriation required for the BRT corridor development. The component also supports to acquire a total area equal to 4,900 square meters distributed in 1 to 2 meters wide strips of land at a few intersections along the 14 kilometers of the corridor. This will be 100 percent financed by the counterpart fund. Component 2 – Upgrading of the bus Operational Control Center ($12 million, of which US$10.3 million will be financed by the IBRD loan and US$1.7 million from counterpart funds) Component 2 finances the upgrading of the bus Operational Control Center (OCC) with state-of-art technologies. This component will support the Municipal Secretariat of Mobility and Transport (SMT) in the construction of the new office building of the OCC inside the existing SPTrans office complex in Santa Rita and the installation of an upgraded and integrated system for bus operation management. The component will finance Dec 04, 2019 Page 9 of 13 The World Bank Sao Paulo Aricanduva BRT Corridor (P169140) acquisition of a set of equipment required for operating OCC, including, among others, servers, computers, monitors, data storage, furniture, miscellaneous accessories. Capacity building and training required for operation of the OCC, as well as technical supervision and environmental and social supervision for the civil works will be included as well. Component 3 – Project management and capacity building on transport planning and policies ($6 million, of which US$3.7 million will be financed by the IBRD loan and US$2.3 million from counterpart funds) Sub-Component 3.1 will support daily operation of Project Management Unit (PMU). The subcomponent will support the PMU operation, including hiring consultants in the areas of financial management, procurement, environmental and social safeguards, engineering, and monitoring and evaluation, which will be implemented by the SIURB. Sub-Component 3.2 finances capacity building related to public transport planning and policies as well as project management activities. The subcomponent will assist the SMT in strengthening their capacities on public transport policies focusing on socially vulnerable users, such as, among others, technical analysis on subsidy for socially vulnerable users, integrated fare policies, and financial sustainability for city bus operation. This would also include technical assistances in the areas of, among others, road safety for public transport, security for public transport users, diagnostics of barriers for non-public transport users, and resilience on public transport infrastructure. In addition, Subcomponent 3.2 will support project management, monitoring and evaluation, and stakeholder engagement. The subcomponent will assist in, among others, external audit, capacity building for General Controller of the MGSP, support to implementation of the gender action plan, training related to sexual harassment response protocol for bus operators, and impact evaluation on project’s benefits, and assessment of the project outcomes and achievements. Finally, support to stakeholder and citizen engagement will be provided, such as communication campaigns on the project for public transport users and neighboring communities including non-public transport users as well as facilitation on policy dialogue between the MGSP and the São Paulo state government and agencies, including Metro, CPTM, and EMTU. . . Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Summary of Assessment of Environmental and Social Risks and Impacts . The main environmental and social risks and impacts associated with the project are the potential increase on soil waterproofing within the corridor, land acquisition of a small number of plots of land along the bus corridor and disturbances on the neighborhoods crossed by the corridor during the construction phase. They are temporary, reversible, and can be mitigated by simple and well-known measures. The Borrower has prepared, publicly disclosed and consulted adequate environmental and social management tools. in compliance with the Dec 04, 2019 Page 10 of 13 The World Bank Sao Paulo Aricanduva BRT Corridor (P169140) requirements of the Environmental and Social Standards considered relevant for this operation (ESS 1, ESS 2, ESS 3, ESS 4, ESS 5, ESS 6, ESS 8 and ESS 10). These tools are: Environmental and Social Impact Assessment, Environmental and Social Management Plans, Resettlement Policy Framework, Labor Management Procedures, and Stakeholder Engagement Plan). An Environmental and Social Commitment Plan (ESCP) has also been agreed between the Borrower and the Bank and will be included in the Loan Agreement. Budget and human resources have been identified for implementing the measures envisaged under the Project’s environmental and social risk management tools and the ESCP. E. Implementation Institutional and Implementation Arrangements The Municipal Secretariat of Urban Infrastructure and Works (SIURB) will be an implementing agency responsible for the entire project management and overall coordination with relevant agencies to ensure a satisfactory project delivery. The SIURB will establish a Project Management Unit (PMU) under the secretary’s cabinet and the PMU will manage the whole project implementation, including: (i) focal point of communication with the Bank and other executing agencies on the project implementation; (ii) financial management of the proceeds of the Project; (iii) procurement and contract management for the activities implemented by SIURB; (iv) monitoring and reporting of project progress and performance, including the result indicators; and (v) stakeholder and citizen engagement. The PMU will also play a coordinator role among other implementation and relevant agencies, including SMT, SPTrans, SPObras, Municipal Secretariat of Finance, Traffic Engineering Company (CET), Public Light Company (ILUMI), etc. Furthermore, the PMU will facilitate coordination and discussion with the State Government of São Paulo, mainly the State Secretariat of Metropolitan Transport which manages Metro, CPTM, and EMTU, to promote the integrated planning and policy throughout the implementation. The SIURB will be in charge of implementation of Component 1 and part of Component 3 together with SPObras, a public company under the SIURB. The SIURB will implement the Component 1 with technical inputs from SPObras, which is a public company in charge of execution of large-scale civil works. SPObras will assist SIURB in designs, bidding documents, procurement process, work supervision, and environmental/social safeguard under Component 1, in close coordination with SPTrans. The SIURB will also implement institutional strengthening related to the Aricanduva BRT corridor development as well as project management activities under Component 3. SPObras has already mobilized a technical team to implement the BRT project and completed the basic engineering design and environmental and social assessment of the project. SPObras will engage the existing engineering, procurement, and safeguard teams to implement the Project. The technical responsibilities of SPObras for the Project will be formally defined through a cooperation agreement between the SIURB and SPObras prior to effectiveness. The Municipal Secretariat of Mobility and Transport (SMT) is responsible for implementation of Component 2 and part of Component 3, together with SPTrans, a public company under the SMT. The SMT will be responsible for upgrading the OCC under Component 2 and part of capacity building activities under Component 3, concretely, technical assistances related to the bus operation and public transport planning and policies. For all the activities under these components, the SMT will procure, sign contracts, and manage the fund flow including payments to contractors and suppliers. The responsibilities of the SMT for the Project will be formally defined through a subsidiary agreement between the SIURB and SMT prior to effectiveness. Meanwhile, SPTrans will provide all the Dec 04, 2019 Page 11 of 13 The World Bank Sao Paulo Aricanduva BRT Corridor (P169140) technical works to the SMT, including preparation of designs and bidding documents, management of procurement processes, work supervision, contract management, and environmental/social safeguard. SPTrans will also assist the SIURB in the implementation of the BRT corridor in terms of the BRT operational aspect. SPTrans will mobilize the existing teams of the OCC, financial management, engineering, procurement, safeguards and planning to support the Project. The technical responsibilities of SPTrans for the Project will be formally defined through a cooperation agreement between the SMT and SPTrans prior to effectiveness. . CONTACT POINT World Bank Satoshi Ogita Senior Transport Specialist Borrower/Client/Recipient Municipality of São Paulo Henry Yokoyama Director, Resource capture division hyokoyama@prefeitura.sp.gov.br Implementing Agencies Sao Paulo Municipal Secretariat of Urban Infrastructure and Works Marina Kyriopoulos Manager, Financial Capture Management makyriopoulos@spobras.sp.gov.br Sao Paulo Municipal Secretariat of Mobility and Transport Ennio Passarini Manager of Projects and Implementation ennio.passafini@sptrans.com.br FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects Dec 04, 2019 Page 12 of 13 The World Bank Sao Paulo Aricanduva BRT Corridor (P169140) APPROVAL Task Team Leader(s): Satoshi Ogita Approved By Environmental and Social Standards Advisor: Practice Manager/Manager: Country Director: Adriana Moreira 06-Jan-2020 Dec 04, 2019 Page 13 of 13