Lima Metropolitano North Extension (WB-P170595)

Countries
  • Peru
Where the impacts of the investment may be experienced.
Specific Location
Lima
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Sep 12, 2019
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Ministerio de Economía y Finanzas, Perú
The holder of the loan, grant, or other investment.
Sectors
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Potential Rights Impacts
  • Healthy Environment
  • Housing & Property
  • Labor & Livelihood
Only for projects receiving a detailed analysis, a broad category of human and environmental rights and frequently at-risk populations.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 123.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 87.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 123.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ WB website

Updated in EWS Apr 2, 2020

Disclosed by Bank May 3, 2019


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Project Description

The Project Development Objective (PDO) is to improve urban transport services, mobility and accessibility to jobs in
the North of the City of Lima. 

The project focuses on: (a) delivering the extension of the BRT Infrastructure in the north area of Lima (segregated
corridor, stations, pedestrian bridges, U-turns and bus depot) and a wastewater treatment plant; and (b) the
necessary equipment and technology. The proposed project will also provide an opportunity in the short term for
PPP financing of additional fleet to support the BRT extension and fare collection system.

People Affected By This Project

he environmental and social risk classification is substantial under the ESF. The classification responds to risks and impacts across the project's large
geographic footprint and associated indirect area of influence along the corridors of intervention and their various intersections. These risks are mainly associated with the complex institutional arrangements of project implementation; PIU’s lack of ability to manage social and environmental risks and impacts in accordance with the Bank’s ESF; risks of inadequately handling occupational and community health and safety issues and traffic management during construction.
Potential environmental risk are related to: i) construction-related activities may include overall nuisance to the communities due to noise and vibration, dust, traffic congestion, waste, and visual disturbances, as well as by the removal and relocation of aproximately 3,500 trees; (ii) Inadequate sourcing and transportation of construction material from quarries, as well as transportation and disposal of surplus materials during construction; (iii) Inadequate handling and disposal of waste and hazardous materials during construction and consequent potential contamination of soil
and/or water; (iv) Contamination of soil and/or underground water due to expansion and operation of a wastewater treatment plant, and relocation of existing sewage canal, activities that are part of the project; (v) Inadequatemanagement of existing environmental liabilities among others.
Potential adverse social impacts and risks attributable to the project include: (i) the need to relocate approximately 800 informal vendors located in the right of way; (ii) the land acquisition of 11 social units (three residential dwellings, three commercial establishments, and five residential and commercial structures; (iii) relocation of a small religious chapel located in the District of Comas that belongs to the community; iv) socioeconomic risk associated to restrictions in access to residential, commercial, and public services, including education (preschools, schools, universities) and health (clinics, hospitals), as a result of construction, traffic deviations, and street closings; and (v) risks of community health and safety.
In addition, there is a significant contextual and stakeholder risk associated to the complex urban settings in which the BRT expansion will be implemented, including the risk of reproducing a system of gender harassment and citizen insecurity present in the current Metropolitano.

Investment Description
  • World Bank (WB)
Private Actors

Urban transport operations in Lima have been implemented under PPP schemes, and the proposed project will
mobilize commercial financing for the additional BRT fleet. Protransporte, on behalf of the City of Lima, signed six PPP contracts (four with transport operators, one for natural gas provision, and one for revenue collection). The transport operation PPP contracts include the provision, operation and maintenance (O&M) of buses, and transport service for users regulated under contractual levels of services, frequencies and capacity of buses.

Contact Information

ACCOUNTABILITY MECHANISM OF WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. You can learn more about the Inspection Panel and how to file a complaint at: http://ewebapps.worldbank.org/apps/ip/Pages/Home.aspx.