INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE

Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized I. Basic Information Date prepared/updated: 03/17/2011 INTEGRATED SAFEGUARDS DATASHEET APPRAISAL STAGE Report No.: AC5995 1. Basic Project Data Country: Kenya Project ID: P124109 Project Name: Kenya Transport Sector Support Project Task Team Leader: Josphat O. Sasia Estimated Appraisal Date: February 22, Estimated Board Date: April 21, 2011 2011 Managing Unit: AFTTR Lending Instrument: Specific Investment Loan Sector: Roads and highways (75%);Aviation (19%);General transportation sector (6%) Theme: Trade facilitation and market access (25%);Infrastructure services for private sector development (25%);Rural services and infrastructure (20%);Regulation and competition policy (15%);Administrative and civil service reform (15%) IBRD Amount (US$m.): 0.00 IDA Amount (US$m.): 300.00 GEF Amount (US$m.): 0.00 PCF Amount (US$m.): 0.00 Other financing amounts by source: BORROWER/RECIPIENT 80.48 FRANCE: French Agency for Development 97.54 178.02 Environmental Category: B - Partial Assessment Repeater [] Is this project processed under OP 8.50 (Emergency Recovery) or OP 8.00 (Rapid Response to Crises and Emergencies) [ ] No [] 2. Project Objectives The Project Development Objectives are to: (a) Increase efficiency of road transport along the Northern Corridor and the Tanzania-Kenya-Sudan road corridor; (b) Enhance aviation safety and security to comply with international standards; and c) Improve institutional arrangements in the transport sector. The PDO outcomes will be measured by (a) a reduction in travel time (40%) on the selected road sections; (b) KCAA cleared for International Aviation Safety Assessment (IASA) Category 1 safety status for direct flights to/from US airports; and (c) a Regulatory mechanism for the construction industry operational. 3. Project Description Project activities will support: (a) deepening of policy and institutional reform in the transport sector; (b) enhancing the capacity of institutions providing oversight and regulatory functions to support the delivery of transport services; (c) supporting

governance, accountability and integrity improvements in transport sector; and (d) financing infrastructure improvements necessary to support Kenya#s long-term development strategy (see Annex 2 for details). Project Components Component A: Rehabilitation and improvement of roads, roadside facilities and road safety interventions (total US$265.90 million, of which IDA US$202.23 million). The selected road sections are among the top priorities in the RSIP. This component will comprise: (a) Rehabilitating the Kisumu - Kakamega - Kitale section (147 km including 10km of new second carriageway) of the Tanzania-Kenya-Sudan road corridor by widening the road carriageway and constructing service roads and non-motorized traffic facilities at market centers to improve road safety; (b) Constructing a second carriageway on Athi River-Machakos road (21 km) on the Northern Corridor as well as service roads (originally to be done under NCTIP but dropped due to inadequate funds and later transferred to the proposed Nairobi Urban Toll Road project which has since been terminated); (c) Rehabilitating the Maji ya Chumvi-Bachuma Gate road section (53 km) on the Northern Corridor, including strengthening and widening of the existing road carriageway, provision of service roads and non-motorized traffic facilities; (d) Constructing the four critical interchanges at Nakuru-Nyahururu turnoff; Nakuru- Njoro turnoff; Mau Summit-Kisumu turnoff and Ahero-Kisii Turnoff; and (e) Supervising the construction works. The rehabilitation works will include: (a) provision of roadside facilities, including lorry and bus parking, seasonal markets, and road-user services; (b) enhancement of road safety through improvement of hazardous locations, traffic calming measures, pedestrian crossings, improvement of major junctions, and so forth; (c) provision of measures to address Human Immune Deficiency Virus/Acquired Immune Deficiency Syndrome (HIV/AIDS); and (d) access roads to public facilities. Component B: Institutional strengthening and capacity building in the transport sector. (Total US$69.70 million, of which IDA US$62.48 million): Sub Component B-1: Support to KeNHA, KURA and KeRRA (Total US$41.70 million, of which IDA US$ 36.47 million). This will involve: (a) Strengthening KeNHA, KURA and KeRRA, including modernization of management information systems, financial planning, contract management and related operational capacities, to enhance delivery of services; (b) Training road-sector manpower, particularly in areas related to management information systems and private sector participation in service delivery; (c) Construction of a single office block for the headquarters of KeNHA, KeRRA, KURA, ERB, KRB and the proposed NCA;

(d) Completing feasibility and detailed engineering designs and studies for developing and managing the road network, including particularly: (i) the Mombasa Western By-pass; (ii) conversion of the Northern Corridor Road into a multi-lane facility; (iii) the Nakuru-Loruk-Marich Pass; (iv) the Lake Victoria ring-road; (v) the Ahero-Kisii- Isebania road-segment; (vi) the Nakuru-Nyahururu-Nyeri road segment; (vii) the Kisian- Busia road segment; and (viii) Malindi-Garsen-Madogo-Garissa road segment; and (e) Marking the boundary and demarcating the Right of Way to secure KeNHA road assets. Sub component B-2: Support to the KRB and MoR (Total US$ 8.90 million, of which IDA US$ 8.54 million). This will involve: (a) Study of the impact of the new constitution on the responsibilities and functioning of KeRRA and KURA, and the role of KRB; (b) Support to enhance the operational capacities of NCA, ERB and KRB; (c) Study of the role of MoR, and provision of technical assistance to implement its new functions and strengthen the Material Department, Mechanical Transport Department, Kenya Institute of Highways and Buildings Technology (KIHBT) and External Resources Department of the Ministry of Finance; (d) Inventory of unclassified roads and recommendations for their maintenance and management; (e) Project monitoring and sector coordination; and (f) Training of manpower in KRB, ERD and MoR. Sub component B-3: Support to the Ministry of Transport (MoT) (Total US$19.10 million, of which IDA US$17.47 million). This will involve: (a) Support for implementing the integrated national transport sector policy, including the: (i) Setting up of the National Road Transport and Safety Authority and support for the National Road Safety Program; (ii) setting up of Nairobi Metropolitan Transport Authority; (iii) establishing the legal and regulatory framework for Railways; and (iv) setting up the Maritime Search and Rescue Unit. (b) Support for strengthening oversight functions in the maritime sub-sector; (c) Strengthening of air accident investigation capacity, including construction of a hangar at JKIA; (d) Development of navigation charts for the Kenyan Coastline, and enhancing search and rescue capability of Kenya on Lake Victoria; (e) Improvement of the maritime training facilities at the Port of Kisumu; (f) Transport sector studies, including, among others, the development of an urban transport sector strategy; a study on the development of airstrips and air transport services at the county and regional levels and concessioning of Kisumu Port; and (g) Training of manpower in MoT

Component C: Support to KAA (total US$120.14 million, of which IDA US$15.04 million). This component will comprise of the following: (a) Reconstruction of MIA#s runway, taxiways and apron, and modernization of its airfield ground lighting systems; (b) Upgrading and modernizing power supply to MIA, and connection to KCAA facilities and equipment; (c) Provision of a new baggage-handling system at JKIA; (d) Capacity building and training of manpower in safety, security and airports management; and (e) Augmenting water supply to JKIA and MIA. Component D: Support to the KCAA (Total US$23.07 million, of which IDA US$21.05 million). This component will involve the following: (a) (b) (c) (d) (e) (f) Provision of technical assistance for safety and security oversight; Technical assistance to support the restructuring of KCAA; Construction of an office block for KCAA headquarters at JKIA; Upgrading KCAA#s ICT facilities; Provision of equipment to upgrade and modernize air navigation systems; and Training manpower in safety, security and oversight in the civil aviation industry. 4. Project Location and salient physical characteristics relevant to the safeguard analysis The major civil works involved in the project, namely rehabilitation of the Kisumu- Kakamega-Webuye-Kitale road (150 km) on the Tanzania-Kenya-Sudan road corridor; the Maji ya Chumvi - Bachuma Gate section (60 km); construction of a second carriageway on the Athi River-Machakos Junction section on the Northern Corridor, and four interchanges on the Northern Corridor, all confined largely to the existing Right-of- Way (RoW) and following the existing alignment. Except for the construction of the three interchanges and the construction of a second carriageway on the Athi River- Machakos Junction road section, all other works involve rehabilitation or reconstruction of existing roads under stable environments. The longest road, namely the Kisumu- Kakamega-Webuye-Kitale road section is in the Western region of Kenya, starting at the northeastern shores of Lake Victoria, passing through rolling and some steep terrain and ending at about 400 km to the border of Kenya with South Sudan. There is no sensitive vegetation or wildlife sanctuary within the zone of influence of the road and the entire road has been in existence for over 40 years. However, in the Malaba area, there is a 2 km stretch of highway cutting through a forest. This road will be widened for the project. Similarly, rehabilitation of works envisaged at Moi International airport Mombasa is limited to the existing runway. No physical resettlement of residential homes is expected, though there is likely to be compensation and resettlement assistance paid to stall-owners within the right of way along the interchanges who will have to be relocated. EIA reports for the project have been prepared by consultants and reviewed by the National Environmental Management Authority (NEMA) and the World Bank. The

Reports have been disclosed to the public, both in the country and in the Bank#s InfoShop. The improvement of the road is expected to have both positive and negative impacts on the environment and local communities. The EIAs show that there are no significant irreversible damages to the environment and the negative impacts are confined largely to the construction phase requiring timely mitigation measures to minimize the effects. The likely impacts and suggested mitigation measures are detailed in the EIA. Several consultation sessions have been held with local communities and their views incorporated in the final designs. Despite the disruption and negative impacts of some limited land acquisition and involuntary resettlement, there is overwhelming support by local communities for the project. Overall, there are no major resettlement issues that are envisaged. The construction of interchanges and rehabilitation of the road sections identified will be within the existing RoW. The major civil works involved in the project, namely rehabilitation of the Kisumu-Kakamega-Webuye-Kitale road (150 km) on the Tanzania-Kenya-Sudan road corridor; the Maji ya Chumvi - Bachuma Gate section (60 km); construction of a second carriageway on the Athi River-Machakos Junction section on the Northern Corridor, and four interchanges on the Northern Corridor, all confined largely to the existing Right of Way and following the existing alignment. Except for the construction of the three interchanges and the construction of a second carriageway on the Athi River-Machakos Junction road section, all other works involve rehabilitation or reconstruction of existing roads under stable environments. The longest road, namely the Kisumu-Kakamega-Webuye-Kitale road section is in the Western region of Kenya, starting at the northeastern shores of Lake Victoria, passing through rolling and some steep terrain and ending at about 400km to the border of Kenya with South Sudan. There is no sensitive vegetation or wildlife sanctuary within the zone of influence of the road and the entire road has been in existence for over 40 years. However, in the Malaba area, there is a 2 km stretch of highway cutting through a forest. This road will be widened for the project. Similarly, rehabilitation of works envisaged at Moi International Airport in Mombasa is limited to the existing runway. No physical resettlement of residential homes is expected, though there is likely to be compensation and resettlement assistance paid to stall-owners within the right of way along the interchanges who will have to be relocated. EIA reports for the project have been prepared by consultants and reviewed by the National Environmental Management Authority (NEMA) and the World Bank. The various safeguards documents (ESIAs, EMPs, and RAPs) for the roads and airport structures have been prepared, consulted upon, and disclosed. The ESIA and RAP for the Athi and Machakos Turnoff-Ulu, prepared and disclosed in 2004, have also been updated. The Northern Corridor Transport Improvement Project (NCTIP) RPF has been updated to address any potential land acquisition/involuntary resettlement issues arising from the civil works at the airports. 5. Environmental and Social Safeguards Specialists Ms Gibwa A. Kajubi (AFTCS) Ms Noreen Beg (AFTEN)

6. Safeguard Policies Triggered No Environmental Assessment (OP/BP 4.01) Natural Habitats (OP/BP 4.04) Forests (OP/BP 4.36) Pest Management (OP 4.09) Physical Cultural Resources (OP/BP 4.11) Indigenous Peoples (OP/BP 4.10) Involuntary Resettlement (OP/BP 4.12) Safety of Dams (OP/BP 4.37) Projects on International Waterways (OP/BP 7.50) Projects in Disputed Areas (OP/BP 7.60) II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: Any potential environmental safeguard concerns related to the project are minimal, given that the project is largely confined to rehabilitation of existing roads and runways. Environmental issues include water abstraction and erosion control during construction, a 2km wildlife corridor in the Kakamega forest, at Malaba and occupational health and safety, and road safety management. These issues can be handled with simple and inexpensive mitigation measures. With regard to OP 4.12, the bulk of impacts will be along the Kisumu-Kitale road in Kakamega town which has congestion of hawkers, traders with moveable kiosks who will need to be compensated mostly for disruption of work as well as some congestion and structures in the four interchange. No involuntary resettlement issues are expected to arise with regard to the Aviation Component, given that the proposed structures to be built will be on secured government land and no additional land acquisition is envisaged. The RPF for NCTIP has been updated to address any potential resettlement issues, should they arise during project implementation. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: Given that the project does not open new routes or runways and is largely limited to rehabilitation of existing roads and an existing runway as well as construction of interchanges within a confined area, no indirect or long term environmental impacts are expected. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. The chosen project minimizes adverse impacts. Any project alternative would lead to an increased environmental and/or involuntary resettlement impact.

4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The Borrower has more than sufficient capacity to address the environmental safeguards issues identified. The Borrower is familiar with the standard measures needed to address impacts in a transport project (erosion control measures, water conservation, dust control, occupational health and safety, rehabilitation of borrow pits, etc). The District Engineers without prompting, expressed concern for the safety of small mammals using a 2 km stretch of the Malaba forest route as a wildlife corridor, and suggested various innovative ideas to protect them (an overhead wire mesh passage, speed bumps/ramps, and signs for motorists). Local engineers also suggested the construction of a dedicated path for cyclists and pedestrians. Draft Resettlement Action Plans (RAPs) and/or abbreviated RAPs have been prepared by KENHA for the various road sections to ensure appropriate measures are taken to consult and compensate project affected peoples. KENHA is familiar with the OP4.12 and has the capacity to oversee the implementation of the safeguard instruments. The Resettlement Policy Framework for the Kenya Transport Sector Support Project (KTSSP) (the same one as for the Northern Corridor transport Improvement Project (NCTIP) is to be updated to accommodate the structures to be built in the Aviation Component and this updated framework will apply should there an unforeseen resettlement issue arise. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Key stakeholders are the communities adjacent to Moi Airport and along the roads and interchanges. Detailed consultations at local level have been held with stakeholders and are documented in the EIAs and RAPs. Key issues raised by stakeholders along the Kakagema-Webuye-Kitale road related to safety, the need for adequate erosion control, and appropriate drainage to prevent flooding (in cases where drainage run-off might create water channels through their private property. Stakeholders also mentioned their concern that they be adequately compensated for gravel used in road projects. In response to these concerns, a separate track for two-wheeled transport, and where necessary, pedestrian pavements, have been incorporated into project design. The EMPs incorporate mitigation measures for erosion and drainage control. Provision of adequate PPE equipment will be made compulsory in construction contracts. Market prices will be paid to local stakeholders for gravel used in road projects. No key environmental issues were highlighted by stakeholders in other project components. With regard to the RAPs, main concerns related to the timing and amount of compensation, and the concern for tenants living in properties on the road reserve about compensation for improvements made in these rented residences. It was explained to the PAPs that they will be compensated for any investment in non-movable assets and loss of crops planted on their rented property, and that a grievance mechanism exists for them to voice any concerns about compensation payments.

B. Disclosure Requirements Date Environmental Assessment/Audit/Management Plan/Other: Was the document disclosed prior to appraisal? Date of receipt by the Bank 02/16/2011 Date of "in-country" disclosure 02/18/2011 Date of submission to InfoShop 02/18/2011 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Resettlement Action Plan/Framework/Policy Process: Was the document disclosed prior to appraisal? Date of receipt by the Bank 02/17/2011 Date of "in-country" disclosure 02/21/2011 Date of submission to InfoShop 02/21/2011 Indigenous Peoples Plan/Planning Framework: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Pest Management Plan: Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop * If the project triggers the Pest Management and/or Physical Cultural Resources, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? If yes, then did the Regional Environment Unit or Sector Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Sector Manager review the plan?

The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank s Infoshop? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project cost? Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? D. Approvals Signed and submitted by: Name Date Task Team Leader: Mr Josphat O. Sasia 03/07/2011 Environmental Specialist: Ms Noreen Beg 02/18/2011 Social Development Specialist Ms Gibwa A. Kajubi 02/18/2011 Additional Environmental and/or Social Development Specialist(s): Approved by: Regional Safeguards Coordinator: Ms Alexandra C. Bezeredi 03/11/2011 Comments: Sector Manager: Ms Supee Teravaninthorn 03/11/2011 Comments: