The World Bank Zambia:Strengthening Public Procurement System for Economic Development (P178539) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 06/23/2022 | Report No: ESRSA02100 Jun 23, 2022 Page 1 of 6 The World Bank Zambia:Strengthening Public Procurement System for Economic Development (P178539) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Zambia EASTERN AND SOUTHERN P178539 AFRICA Project Name Zambia:Strengthening Public Procurement System for Economic Development Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Governance Investment Project 3/31/2022 Financing Borrower(s) Implementing Agency(ies) Government of Republic Zambia Public Procurement of Zambia Authority (ZPPA) Proposed Development Objective Public Disclosure Financing (in USD Million) Amount Total Project Cost 0.46 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] The Grant will support in enhancing the public procurement performance of Zambia through the full and mandatory use of Electronic Government Procurement (e-GP). It will also focus on building the capacity of Public Procurement Jun 23, 2022 Page 2 of 6 The World Bank Zambia:Strengthening Public Procurement System for Economic Development (P178539) Entities and Private Sector firms nationally. The capacity building activities shall be mainly e-based through the eLearning platform to be established by the project and other distance learning methodologies, given the current COVID-19 restrictions. The eLearning platform shall be hosted at the existing the ZPPA office and hence no civil work will be carried out. D. 2. Borrower’s Institutional Capacity The implementing agency will be the Zambia Public Procurement Authority (ZPPA). ZPPA was established as an independent regulatory body with the responsibility to make policies, set standards, monitor compliance and performance, and manage and disseminate performance development and information for public procurement. ZPPA has prior experience of implementing Bank funded projects under the now closed PFMRP (P132523) without any outstanding E&S issues and thus has the capacity to manage the environmental and social risks and impacts of this project during implementation. II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Low Environmental Risk Rating Low The environmental risk is Low. The Grant will support in enhancing the public procurement performance of Zambia through the full and mandatory use of e-GP and, therefore, the project is anticipated to generate positive environmental impacts. The project activities will include capacity building, e-learning, communication and behavioral change, data analytics on procurement performance and project management. The use of e-GP is the evolution of the Public Disclosure traditional paper-based procurement activities towards a more integrated and digitized process and will eliminate the need for in-person visits, printing, reduce the generation of paper based waste and natural resource consumption. It is a greener and more sustainable method by reducing the government’s carbon footprint and is resource use efficient. There is the possibility of COVID-19 transmission risks with capacity building events, but the project's simplified Labor Management Procedure (LMP) (developed together with SEP) includes specific mitigation measures to be implemented where face to face events take place. Social Risk Rating Low The Grant will support enhancing the public procurement performance of Zambia through the full and mandatory use of e-GP. It will also focus on building the capacity of Public Procurement Entities and Private Sector firms. It will help in “Boosting Private Sector Participation” through the use of e-GP by reducing barriers to entry, increasing competition, and wider geographic spread of potential firms. The nature of the proposed activities have little or no negative social risk and impacts, therefore the social risk is assessed as low. Potential risks are limited to the consultancy services providing technical and capacity building support on the e-GP. These risks include spreading of COVID-19 during capacity building trainings and meetings. As required for Bank operations, stakeholders will be consulted and a simplified SEP has been prepared by the project proponent in accordance to ESS10. Due to the nature and scale of the activities, risks related to labor and working conditions and occupational health and safety are anticipated to be negligible. Workers envisaged for the project are direct employees of ZPPA and contracted workers and risks may include unequal opportunities as well as unsafe working conditions that may be considered detrimental to the health and safety of workers. These risks are addressed in a simplified LMP which also outlines a grievance mechanism in case of complaints in accordance with ESS2. Jun 23, 2022 Page 3 of 6 The World Bank Zambia:Strengthening Public Procurement System for Economic Development (P178539) B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: The project is expected to have minimal or negligible risks to and impacts on human populations and/or the environment. These may be risks related to labor and working conditions and occupational health and safety for all project workers. Workers envisaged for the project are contracted workers and direct workers from ZPPA . The specific risks may include unequal opportunities, COVID-19 transmissions, or unsafe working conditions that may be considered detrimental to the health and safety of workers. The Project addresses risks and potential impacts through a simplified SEP as identified in ESS10, and a simplified LMP which also outlines a grievance mechanism in case of complaints in accordance with ESS2. Any COVID-19 PPE related waste generated from face to face meetings and training will be disposed of in accordance with local solid waste management guidelines. Where capacity building activities are undertaken the project will ensure that the activities shall be carried out in accordance with terms of reference acceptable to the Bank and consistent with the ESSs. There will be no purchase of hardware because the grant will focus on building capacity of Public Procurement Entities and Private Sector firms. As the project is not assessed as having other risks and no adverse environmental and minimal social impacts, no further or additional assessment is needed. Public Disclosure ESS10 Stakeholder Engagement and Information Disclosure The project shall establish a structured approach to stakeholder engagement and outreach that is based upon meaningful consultation and disclosure of appropriate information, acknowledging the specific challenges associated with COVID-19. A simplified SEP has been prepared for the grant outlining key stakeholders, the consultations that have taken place in the preparation of the project, the engagement that will be undertaken in the process of implementation. Where capacity building activities are undertaken the project will ensure wide inclusion of potential recipients and that any risk of exclusion of groups and individuals is avoided. The project shall use the existing ZPPA grievance mechanism, to receive and facilitate resolution of concerns and grievances in relation to the Project, promptly and effectively, in a transparent manner that is culturally appropriate and readily accessible to all Project- affected parties, at no cost and without retribution, including concerns and grievances filed anonymously, in a manner consistent with ESS10. B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions Workers envisaged for the project are direct workers from ZPPA and contracted workers. Possible risks may include unequal opportunities, COVID-19 transmissions, or unfair treatment as well as unsafe working conditions that may be considered detrimental to the health and safety of workers. A simplified LMP has been prepared for the grant outlining the types of workers that will be involved in the implementation, and how they will be managed including fair treatment, non discrimination, equal opportunity, right to collective bargaining and an accessible complaints Jun 23, 2022 Page 4 of 6 The World Bank Zambia:Strengthening Public Procurement System for Economic Development (P178539) mechanism. The PIU will also ensure that where contracted workers and ZPPA staff are engaged, the potential risks of forced labor and health and safety of workers are addressed. Where capacity building activities are undertaken, these must be in line with current Bank and Government of Zambia guidance on management of risks associated with COVID-19. ESS3 Resource Efficiency and Pollution Prevention and Management ESS 3 is not currently relevant to this project. ESS4 Community Health and Safety ESS 4 is not currently relevant to this project. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Proposed activities will not result in land acquisition, restrictions on land use and involuntary resettlement as such ESS 5 is not currently relevant to this project. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources ESS 6 is not currently relevant to this project. Public Disclosure ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities ESS 7 is not currently relevant to this project. ESS8 Cultural Heritage ESS 8 is not currently relevant to this project. ESS9 Financial Intermediaries ESS 9 is not currently relevant to this project. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No Jun 23, 2022 Page 5 of 6 The World Bank Zambia:Strengthening Public Procurement System for Economic Development (P178539) B.3. Reliance on Borrower’s policy, legal and institutional framework, relevant to the Project risks and impacts Is this project being prepared for use of Borrower Framework? No Areas where “Use of Borrower Framework” is being considered: No IV. CONTACT POINTS World Bank Contact: Khalid Bin Anjum Title: Senior Procurement Specialist Telephone No: 5355+3227 / 255-769-755441 Email: kanjum@worldbank.org Contact: Ishtiak Siddique Title: Senior Procurement Specialist Telephone No: 5355+3218 / 1-202-7168578 Email: isiddique@worldbank.org Borrower/Client/Recipient Borrower: Government of Republic of Zambia Public Disclosure Implementing Agency(ies) Implementing Agency: Zambia Public Procurement Authority (ZPPA) V. 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 VI. APPROVAL Task Team Leader(s): Ishtiak Siddique, Khalid Bin Anjum Practice Manager (ENR/Social) Iain G. Shuker Cleared on 25-Apr-2022 at 19:05:54 GMT-04:00 Jun 23, 2022 Page 6 of 6