The World Bank Southern Waterways Logistics Corridors (P169954) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 02/22/2022 | Report No: ESRSA01955 Feb 22, 2022 Page 1 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Vietnam EAST ASIA AND PACIFIC P169954 Project Name Southern Waterways Logistics Corridors Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Transport Investment Project 2/22/2022 5/27/2022 Financing Borrower(s) Implementing Agency(ies) Socialist Republic of Ministry of Transport Vietnam Proposed Development Objective The project development objective is to improve the capacity, efficiency and safety of two key inland waterways Public Disclosure corridors in southern Vietnam. Financing (in USD Million) Amount Total Project Cost 163.03 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] The project will upgrade two key waterways, to allow increased cargo volumes in larger vessels to navigate on corridors connecting the four largest ports in southern Vietnam. This will reduce transport costs, time, GHG emissions, and accidents. The project will increase the waterways capacity of an East–West Corridor and North–South Corridor, connecting the Can Tho port, the main port in Mekong Delta, the key Dong Nai manufacturing center, the Ho Chi Minh City (HCMC) port, and the Cai Mep Thi Vai (CMTV) deep-sea port. The project will also include navigational aids and sharp bend corrections, for safety along the busy waterways. The project comprises the following components: Feb 22, 2022 Page 2 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) Component 1: Upgrading sections of the East–West Waterways Logistics Corridor (estimated cost: US$153.48 million; IBRD loan US$100.66 million). This component will finance the upgrading of sections of a key east–west inland waterways corridor that connects the Can Tho port and the HCMC port with the shortest distance. The sections will be upgraded to navigation Class II. In particular, this component will support (a) the widening and deepening of the waterways at Mang Thit, Cho Lach, Rach La, and Ky Hon rivers, considering changing climate and water levels; (b) the construction of embankments at Mang Thit, Cho Lach, and Rach La that adapt to climate-induced erosion risks; (c) the reconstruction of the Cho Lach 2 bridge for higher and wider vessel clearances and more resilient to rising water levels; (d) sharp river bend corrections at Mang Thit, Cho Lach, and Rach La; (e) the construction of access roads to connect with existing roads at Mang Thit, Cho Lach, and Rach La; (f) the reconstruction of drainage/irrigation outlets for agriculture at Mang Thit, Cho Lach, and Rach La; and (g) the installation of navigation aids including at Tra On, Mang Thit, Cho Lach, and Nuoc Man-Can Giuoc Rivers for safety. After upgrading the sections, the East–West Corridor will reduce transport distance by about 92 km from the existing route used by vessels above 300 tons. Due to the constraints of the waterways, currently only vessels carrying 100–300 tons could travel through these sections. Once these sections are upgraded, the corridor will allow fleets with a tonnage of up to 600 tons, and vessels up to 1,500 tons or about 128 TEU (equivalent to 128 trucks) can also navigate depending on the tides. Component 2: Upgrading sections of the North–South Waterways Logistics Corridor (estimated cost: US$2.35 million; IBRD loan US$1.54 million). This component will finance the improvement of waterway sections of an important North–South Corridor that connects the Dong Nai port, the HCMC port, and the CMTV deep-sea port. The sections are Special Class waterways and will be improved for smoother navigation and safety. The component will support river widening and bend corrections at the Tac Cua River. Currently, a typical vessel on this route can be about 3,000 DWT Public Disclosure but is unable to navigate full time and must wait for high tides. The improvement will allow vessels up to 5,000 DWT and container vessels of 200 TEU (equivalent to 200 trucks) to navigate full time along the corridor. As the East–West Corridor is connected to the North–South Corridor, the improvement of the North–South Corridor also enhances the integrated logistics network and the connectivity of cargo from the Mekong Delta hinterland to the deep-sea port in CMTV. Component 3: Strengthening and supporting institutional capacity (estimated cost: US$7.21 million; IBRD loan US$5.47 million). This component will finance the provision of institutional and technical assistance support for the MOT, including detailed engineering designs, construction supervision consultant, independent financial auditor, and independent social and environmental monitoring consultant. Over the years, in parallel, the World Bank has also been providing and is continuing technical assistance, for example, by enhancing the regulatory environment, improving IWT maintenance regimes, and encouraging improved vessel fleets. 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 Project area is located in the Southern part of Vietnam, including HCMC, Long An, Tien Giang, Dong Nai, Ben Tre, and Vinh Long provinces. It is bordered by Tra Vinh, Soc Trang, Can Tho, and Hau Giang provinces to the south; Dong Thap, Tay Ninh provinces to the west; Binh Duong, Binh Phuoc provinces to the north and Ba Ria Vung Tau and the East Sea to the east. The total project area is approximately 3,000 square km and includes HCMC - the largest and the most populated city in Vietnam. The population of the whole of all Project-related provinces is about 17 million Feb 22, 2022 Page 3 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) people (2019), 50% of whom live in urban areas (with 8.4 million people living in HCMC). However, along the Project affected river/canal network, there are no major cities, with the settlement patterns being mostly classified as rural or peri-urban (including 5 townships). The only ethnic minority group presents in the project area is Khmer people, who live in Tra On district, in Vinh Long province. Among the ethnic groups in the Mekong Delta (MKD) region, the Khmer people have the lowest average incomes and rely primarily on rice cultivation and fishing for their livelihoods. The average poverty rate (2020) of 12 project districts is about 2.8%, in which the lowest and highest rates are 0.9% and 4.8% in Mang Thit district and Tra On district, respectively in Vinh Long province. Most Khmer people concentrate on these districts. The main livelihoods of project-affected communities are farming (41.6% including rice cultivation, aquaculture, and horticulture), business and services provision (21% with small scale), and workers in the industrial zone (12.7%). Unemployment affects about 3% of communities’ labor population. The Project area is divided into two distinct geographical settings: the Mekong Delta region (the East-West Corridor) and the greater HCMC region (Dong Nai and Ho Chi Minh City in the North-South Corridor). Both of the regions have a relatively flat topography and abundant and relatively stable annual rainfall from 1,400-1,900 mm/year with over 90% of the rainfall concentrated in the rainy season (from May to November). Two windy seasons are made of the northeast and the southwest monsoons. The former usually starts from November in the northeast, and later starts from May in the southwest, ending in April. The Project area has a dense river network with Tien and Hau Rivers are being the main rivers of Mekong Delta (MKD) and Dong Nai, while the Thi Vai river is the main river of the Northeast (NE)-MKD. Therefore, the main transport route in the Project area is the river system of Tien River and Hau River (Bassac River) connecting to Soai Rap River and Dong Nai River via Cho Gao Canal. MKD and Northeast (NE)-MKD are usually not affected by typhoons. However, these two areas are facing erosion, landslide, saltwater intrusion, and Public Disclosure droughts. The occurrence of erosion and landslide events along the river/canal network of the MKD is a quite common risk and hazard and has an increasing trend that presents a growing risk to the region’s population. In respect to saline intrusion, being located at the downstream portion of the Mekong River, Vietnam has severely suffered from the effects of rapid dam construction and upstream hydropower development, including China, Laos, and Thailand, which has significantly exacerbated negative impacts to the MKD. Along the Project canals/rivers, except for the area of Can Gio protection forest, common animals of the MKD and NE-MKD regions such as frogs, reptiles, insects, birds, etc. mostly live along the banks of the dredged rivers/canals. In the Can Gio Biosphere Reserve, along the Dong Tranh and Tac Cua Rivers, a number of vertebrate species have been recorded including 9 amphibians, 31 reptiles and 4 mammals, of which some species are listed in the Vietnam Red Book as gecko, water monitor, Indian python, cobra and estuarine crocodile. The Can Gio mangrove forest plays an important role in the provision of downstream ecosystem services, particularly to HCMC. It also has a great potential for ecotourism with three main areas, including Vam Sat, Dan Xay and Lam Vien. Due to the importance of its mangroves, UNESCO recognized Can Gio as the World Biosphere Reserve Area in 2000. However, the potential impact of the project construction activities on ecotourism is expected to be negligible as all three areas are located at some distance; the closest is the Vam Sat ecotourism area some 16 km away. In November 2021, 5 air samples, 10 surface water samples, and 2 biological samples were taken to evaluate the background environment quality in the project area. Results of field surveys and environmental monitoring show that the quality of the air, surface water is still quite good, except for several parameters including TSS, BOD5, COD that exceed the permissible standards following National Regulation of Surface water quality QCVN 08- MT:2015/BTNMT (class B1 for irrigation and other uses). They are probably caused by the movement of inland waterway vessels together with the domestic activities of local people. The result of groundwater quality and sediment quality which are cited from the project ESIA in 2017 showed that all monitoring parameters meet the national permitted limits of Feb 22, 2022 Page 4 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) QCVN 43:2012/BTNMT and QCVN 09-MT: 2015/BTNMT, respectively. The results of the survey and evaluation also show that there are no national parks, nature reserves, and endangered terrestrial and aquatic species in the project area. As a source for supply water treatment plants for local people along Mang Thit river at segment flowing through Vinh Long province, these two plants are far away from the construction and dredging sites in Mang Thit river. Specifically, (i) Vung Liem water supply station in Vung Liem town, Vung Liem district is 15km away from the construction and dredging sites in Mang Thit river and (ii) Cai Nhum supply water plant in Cai Nhum commune, Mang Thit district 7.5 km from the construction and dredging sites in Mang Thit river. Additionally, scattering model of sediment as mentioned in item (a) showed that maximum concentrations of suspended solids which are scattered from dredging will decrease rapidly to background values within 500m to the downstream of dredging locations. In addition to serving irrigation for water supply, agriculture, and water transport, the water sources in the project area cannot be used for industrial production and recreational services related to water. Within the Project affected river/canal network, there are no major cities, it contains mostly rural population and peri-urban areas (including 5 townships). The ethnic minority groups of Khmer people are identified in Tra On district, Vinh Long province. In the Mekong Delta (MKD) region, Khmer people are poorest compared with other EM people. Their livelihoods are mainly relied on farming such as rice cultivation and fishing. The project works are built on the existing base, mainly located in residential areas. Some sensitive receptors consist of: (i) in Mang Thit river area: Phat Tanh pagoda, Tra On Protestant Church, Nhi My pagoda, Huong Duong Public Disclosure Kindergarten, Tam Binh General hospital, Luu Van Liet primary school, Tam Binh market, Tuong Loc Church, Tuong Loc B primary school, Nhon Binh B primary school, Xuan Hiep A primary school, An Lac pagoda; (ii) in Cho Lach canal area: Khung Le Kindergarten, Cho Lach protestant church, Cho Lach cathedral, Cho Lach General Hospital, An Tiem Kao Dai church; in Rach La canal area: Linh Chieu pagoda. None physical cultural resources and intangible cultural resources are affected by the project implementation. D. 2. Borrower’s Institutional Capacity The Ministry of Transport (MOT) will own the project, oversee project implementation, coordinate between central and provincial government agencies, ensure compliance with government rules and World Bank ESF requirements. MOT will also be responsible for approval of the overall feasibility study/construction investment report, E&S instruments (ESCP, EMPF/EMDPs, RPF/RAPs, SEP, LMP), and overall procurement plan. As the line agency, MOT will approve detailed engineering designs and cost estimates, bidding documents/request for proposals, bid/proposal evaluation reports, evaluation reports and sign contracts; review the quality of works and review periodic reports; and provide counterpart funds for land acquisition, compensation, and resettlement. The Project Management Unit of Waterway Projects (PMU-W) will be responsible for the overall project management, including supervising, monitoring, and evaluating the implementation of the project’s ESF requirements during the detailed design and construction stages, as well as the compliance with the obligations established in the Environmental and Social Commitment Plan (ESCP). The PMU-W will also be responsible for incorporating the relevant requirements of the ES studies into the standard tender documents for contractors to implement the ES management measures during the detailed design and construction phases. The PMU-W already has three dedicated ES focal points in place, and an independent ES monitoring consulting firm, Independent Environmental and Social Monitoring Consultant (IESMC), will be hired in early implementation as a Feb 22, 2022 Page 5 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) ‘third-party supervision’ entity to conduct periodic supervision of ES implementation. The supervising engineers will monitor civil works implementation to ensure the full implementation of the ESF instruments and submission of various monitoring reports to the PMU-W, as appropriate. The relevant Provincial People Committees (PPCs) and District People Committees (DPCs) will be responsible for Land Acquisition and Resettlement (LAR) in their administrative jurisdictions. The ES management performance and compliance will also be subjected to regular supervision from the World Bank. The above-implementing entities have previous experience with World Bank safeguards requirements as they have been involved in the preparation and implementation of many World Bank-financed road projects and three inland waterways projects since 1997, including Hanoi Transport Development, Hai Phong Transport Development, Da Nang- Quang Ngai Expressway, Mekong Delta Transport Infrastructure Development Project (MDTIDP), and Northern Delta Transport Development Project (NDTDP). However, since this project is the first World Bank-financed transport project prepared by the Ministry of Transport (MOT) after the new ESF became effective on October 1, 2018, the project entities are not familiar with the environmental and social requirements under the ESF. Although the PMU-W received the World Bank’s Borrower ESF training in May 2018, the overall institutional capacity still needs to be strengthened. As such, the World Bank team will provide close monitoring, hands-on support, and targeted training to the PMU-W and other entities, especially at the beginning of the project implementation. II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Substantial Public Disclosure Environmental Risk Rating Substantial The project will be implemented within the existing waterways along canals and rivers. It will not be located within any critical or natural habitats and forests, archaeological and historical sites, or densely populated areas. Both the canals and rivers do not directly or indirectly link to any important/critical habitat or ecosystem. Although the Tac Cua River, which will be dredged under the project, boders the buffer zone of Can Gio protection forest, no land of the protection forest will be acquired. Given the location and the nature of the project, the risks and impacts of the project on the protection forest and biodiversity are not expected to be significant. The waterways and surrounding lands that would be within the project footprint have been anthropogenically converted decades ago. No important cultural heritage is identified within the area of project influence. The sensitive receptors along the rivers and canals include churches, pagodas, markets, schools, hospitals and residential areas which are not expected to be significantly affected by the project construction and operation. The project will help reduce pressure on road transport and associated adverse impacts such as traffic congestion, air pollution, noise, and traffic accidents. However, given its type, nature, location, sensitivity and scale, the project is expected some to result in substantial environmental risks and impacts, associated with dredging/excavation and disposal of the dredged/excavated materials; safety risks of UXOs; waterway traffic disturbances and risks including accidents and water quality impacts affecting aquatic species and water supply along the rivers and canals during construction. The project is expected to have: i) direct pollutant discharges causing degradation of air, water or soil; ii) substantial-scale physical disturbance of the site and surroundings due to excavation of about 4.5 million cubic meters of material during the construction phase resulting in substantial risks and impacts associated with excavation and disposal activities; iii) no extraction, consumption, or conversion of substantial amounts of forest and other natural resources; iv) impacts on aquatic life, Feb 22, 2022 Page 6 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) riverine ecosystem services; v) moderate amounts of hazardous which are not be expected to result in significant impacts during construction, but with a moderate risk of fuel/oil leakage if accidents happen during construction and operation; and community and worker health and safety from construction and dredging activities. Other investments such as construction of the bridge, embankment, local access roads, and irrigation culverts are of small to moderate scale. The associated environmental risks and impacts are those common to construction activities and expected to be moderate, short-term, and localized with readily designed mitigation measures. The country’s policy, legal and institutional framework, applicable to the Project sector are expected to be consistent with the ESSs to a large extent. The technical and institutional capacity of the implementing agencies (IAs) is strong evidenced by its direct successful design and implementation of big waterways transport projects. The IAs have good capacity and commitment to manage the risks and impacts under the current safeguard policies. However, capacity of the staff of the PMU-W in ESF has to be strengthened during project preparation and implementation. Other areas of risk that may be relevant. The project will be in the Mekong Delta which is under increasing influence of climate change, resulting in flooding, sea level rise, increased storm frequency and severityand subsequent river and canal bank erosion. Climate change adaptation and mitigation will need to be factored into the project design and operation. Social Risk Rating Substantial The social risk of the project is classified as substantial. According to the initial social impact assessment, the construction works of the project will require relatively substantial land acquisition (about 88.5 ha ) from 1,068 households, including ethnic minority people (in Vinh Long province). Land acquisition will cause loss of assets attached to lands, such as houses/structures/graves, standing crops and trees, and loss of income generation opportunities from land-based livelihoods and nonagricultural businesses. The project also affects temporarily a wide array of waterway users and aquaculture households during the construction period. Besides, while most of Public Disclosure the workforce will be mobilized by contractors from the areas adjacent to the project sites during the construction period, a relatively large number of contract workers may also come from other provinces. This may result in a range of social impacts and risks to local communities and other stakeholders, such as gender-based violence (GBV), sexual exploitation and abuse [SEA], and sexual harassment [SH] related to labor influx, an increase in substance abuse, and risk of infection of COVID-19 and other communicable diseases. It is expected that these impacts will occur across a wide geographical area (within a corridor of a length of about 197km, crossing 5 provinces and mainly rural areas). For the most part, locations of the proposed project are not in socially sensitive areas such as poor communities, culturally or spiritually sensitive areas, or locations hosting cultural heritage regional or national importance. In terms of cultural and social sensitivity, the one area that will be impacted by the project is the Khmer ethnic minority community in Vinh Long province. According to initial assessments, the implementing agencies at the central level and provincial level, including MOT, PMU-W, DOT, DONRE, DPCs, LFDCs have had experience in the implementation of previous social safeguards for the World Bank-funded projects in the past but no experience in the ESF. Moreover, insufficient and untimely provision of counterpart funds for compensation and resettlement as well as unavailable resettlement sites for relocation is a challenge that the project implementing agencies may have to address. This could be a challenge for the implementation of compensation, resettlement, and site clearance for the project, since some district government units may not have the capacity to deliver the land required for the project and resettlement sites on time. Therefore, training in the ESF, and ESS5 in particular, for staff of the implementing agencies is needed before implementing LAR, and counterpart funds should be provided sufficiently and timely by MOT, and resettlement sites should be available for relocation by participating PPCs. B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered Feb 22, 2022 Page 7 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) 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 will have positive environmental and socio-economic benefits in terms of reducing logistics costs, transit time, GHG emissions, and vessel accidents. The project will help reduce pressure on road transport and associated adverse impacts such as traffic congestion, air pollution, noise, and traffic accidents. During project preparation, the MOT prepared a draft Environmental and Social Impact Assessment (ESIA) in accordance with the World Bank’s relevant Environmental and Social Standards (ESSs), ESS1-ESS8, and ESS10, and government regulations to inform decision making in planning and technical design. The ESIA covers all the investment items under components A, B, and C, and the areas of project influence. It also identifies opportunities to preserve, expand and upgrade existing modified natural habitats, and facilitate a more holistic approach towards the design of the river and canal upgrading and embankment including dredging; bridge construction; reconstruction of access roads and irrigation and sewers work for agriculture; and installation of navigation aids. The draft preliminary ESIA will be updated into the final document by project Negotiation because the ESIA is prepared in parallel with the preparation of the Feasibility Study which is expected to be completed by Negotiation. Also, this project includes the preparation of the Resettlement Policy Framework (RPF), Ethnic Minority Planning Framework (EMPF), Stakeholder Engagement Plan (SEP), and Labor Management Procedures (LMP). The environmental and social (ES) studies and plans are contributing to influencing the project design and to help prepare ES risk management, monitoring, and institutional measures to be implemented during the construction and operation stages. Public Disclosure The ESIA finds that the environmental baselines of the project areas are characterized by a low to moderate sensitivity with varying degrees of modified habitats within the existing waterways along the rivers and rivers. The waterways and surrounding lands that would be within the project footprint have been anthropogenically converted decades ago. No important cultural heritage is identified within the area of project influence. The main environmental, health, and safety risks and adverse impacts likely to occur are associated with the size of the project investment and the nature of its interventions, including i) dredging activities in five canals and rivers (with an estimated volume of mud/soil up to 4.5 million m3); ii) embankment protection of 23 km in locations of three canal and rivers; iii) reconstruction of one bridge; iv) bend corrections at four canals and rivers; v) construction of access roads (approximately 7 km spread around three canals and rivers); and vi) upgrading of irrigation and drainage outlets. If the design and implementation of these interventions are not properly carried out, the project could generate (a) safety risks due to the occurrence and removal of unexploded ordnances (UXOs); (b) water pollution and turbidity due to dredging activities; (c) impacts on aquatic life, riverine ecosystem services, and water supply along the canals and rivers; (d) water and land pollution due to the disposal of dredged and excavated materials; and (e) occupational and community health and safety risks. In terms of the sensitivity of the receiving environment, the proposed interventions would not be implemented within critical or natural habitats, cultural heritage sites, and/or densely populated areas. The most sensitive environmental receptor in the neighboring area is the Can Gio protection forest. However, the project activities will not be implemented within the Can Gio protection forest or its buffer zone, and land acquisition of the forest is not required. Furthermore, several river bend cuttings have been avoided, and bend corrections will be conducted for safety purposes, significantly minimizing dredging and Feb 22, 2022 Page 8 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) avoiding isolating populations. These environmental risks and adverse impacts are expected to be medium to substantial in magnitude, site-specific, predictable, and/or reversible, and can be readily and reliably managed through the mitigation hierarchy and management measures. A cumulative impact assessment has been conducted as part of the ESIA process and found that the project would not have significant cumulative impacts on the identified valued ecosystem components including traffic safety and aquatic life. Lastly, the two hydraulic modelings conducted for the project confirmed that the project would not have significant impacts on the water flow, sedimentation, and water quality. An Environmental and Social Management Plan (ESMP) has been prepared as an integral part of the ESIA to (a) ensure compliance with the applicable and national laws, regulations, standards, guidelines, and ESS requirements; (b) ensure that there is sufficient allocation of resources within the project budget for the implementation of the ESMP-related activities; (c) ensure that ES risks and impacts associated with the project are properly managed; (d) respond to emerging and unforeseen ES issues not identified in the ESIA; and (e) provide feedback for continual improvement in ES performance. The ESMP proposes mitigation measures to address the site-specific risks and impacts during construction and operation, including dredged material management plans. The mitigation measures will be incorporated into construction bidding/contractual documents and the Contractor Environmental and Social Management Plans (C-ESMPs), for implementation by the contractors. Potential risks and impacts on Occupational, Health, and Safety (OHS) and Working Conditions will be addressed through the project’s LMP and Occupational Health and Safety Management Plan, which will be included as an annex of the final version of the ESMP. Public Disclosure To address potential impacts related to project-induced labor influx during the construction phase, the project’s Sexual. Exploitation and Abuse and Sexual Harassment (SEA/SH) risk of this project has been analyzed and screened as ‘Low’. The mitigation measures to address the potential risks and impacts related to labor influx are included in the project’s ESMP and LMP and will be contractually enforced by including codes of conduct in the bidding documents. The project has prepared, consulted, and disclosed a draft Stakeholder Engagement Plan (SEP). Some consultations were held previously during 2017 for the preparation of ESIA and Resettlement Plans. Also, pilot online consultations were carried out in selected districts during the second half of 2021, plus meaningful consultations of the ESF documents have been held face to face, virtually, or in hybrid formats during December 2021 through February 2022 considering the COVID-19-related mobility and public gatherings restrictions. The stakeholder’s feedback has been incorporated into the project design and the final ES documents. The ES documents will be disclosed prior to WB’s appraisal locally and on the World Bank external website. Furthermore, grievance redress mechanisms (GRMs), both physical and online, will be established to process complaints during implementation, including gender-based violence. A GRM focal point within the PMU-W will be appointed to coordinate different administrative levels for handling complaints in a timely and satisfactory manner following the project’s GRM included in the project SEP. For involuntary resettlement (ESS5), a draft Resettlement Policy Framework (RPF) has been prepared prior to WB’s appraisal, and a site-specific Resettlement Plan (RP) will be prepared after appraisal once the social assessment (as part of the project’s ESIA) is finalized. Based on the inputs coming from the project’s technical Feasibility Study (FS), ESIA, and RPF, more accurate site-specific RPs will be prepared at the provincial level. It is also important to note that since this project’s footprint covers several provinces, the Government of Vietnam requires to prepare an overall resettlement framework to harmonize and consolidate the policies/regulations applied in the whole project. For Feb 22, 2022 Page 9 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) ethnic minorities (ESS7), and Ethnic Minority Planning Framework (EMPF) has been prepared, consulted, and disclosed prior to the appraisal. If it is the case that the Khmer community that would be considered indigenous under the ESF will be affected by project works (following the four criteria stated in para 8 of ESS7), site-specific Ethnic Minority Development Plans (EMDPs) will be prepared during implementation, when the location and scale of project activities will be finalized. Also, an Environmental and Social Commitment Plan (ESCP) has been prepared. It includes all the material measures and actions required for the project to meet the World Bank ESS over specific project time frames. An adaptive management process for addressing changes or unforeseen circumstances has also been set out in the ESCP. The process specifies how such changes or circumstances are to be managed and reported and how any necessary changes will be made to the ESCP and the management tools used by the implementing agency. The ESCP will form part of the Financial Agreement, which will include the obligations of the implementing agency to support the implementation of the ESCP. There are five projects implemented, being implemented or will be implemented in the project area including i) Upgrading Two Southern inland waterway routes and Can Tho port Project; ii) The Mekong Delta Transport Infrastructure Development Project; iii) Upgrading Cho Gao Canal Project - Phase 1; iv) Upgrading Cho Gao Canal Project - Phase 2; v) The socializing project of dredging, maintaining and upgrading Dong Tranh waterways and Tat Ong Cu - Tat Bai, Tat Cua to Go Gia river. All these projects don’t meet all the criterial for associated facilities as defined in the ESF. They have been, are being, or will take place regardless of the Project. Public Disclosure ESS10 Stakeholder Engagement and Information Disclosure The project has prepared, consulted, and disclosed a draft Stakeholder Engagement Plan (SEP). Previous consultations were held during 2017 for the preparation of ESIA and Resettlement Plans. Also, pilot online consultations and face-to-face consultations were carried out in selected communes/districts during the second half of 2021. The consultation process has faced the COVID-19-related mobility and public gatherings restrictions. However, there are alternatives to collect field data and feedback from the stakeholders, thus the PMU-W and their consultants have applied a blended approach of face-to-face, virtual or hybrid formats. During the consultation process prior to WB’s appraisal during December 2021 through February 2022, the main draft project information was shared and discussed with stakeholders including the project's objectives, the scope of investments, key potential environmental and social risks and impacts, mitigation measures including compensation, stakeholder participation mechanism throughout the project cycle, and grievance redress mechanism for affected people. Collected information and the feedback received from the participants were recorded and used for the preparation of the final versions of the ESIA/ ESMP, LMP, SEP, RPF, EMPF, and ESCP. The consultations carried out before WB’s appraisal can be considered meaningful since they reached 658 affected stakeholders (out of an estimated total of 1,068), 52 participants in line ministries, and 172 participants in local authorities. The consultation process consisted of: (i) consultation meetings at the provincial level with concerned departments of the provinces (DOF, DOC, DOT, DONRE, DOLISA, LFDC, etc.); (ii) consultation meetings at the district Feb 22, 2022 Page 10 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) level with the District People's Committees, Women's Unions, Land Fund Development Centers, Division of Labor, Invalids and Social Affairs, Division of Natural Resources and Environment, Division of Ethnic Minorities; (iii) consultation meetings at commune level with representatives of local authority and local mass organizations; (iv) individual interviews have been made with the representatives of the affected households; (v) focus group discussions with the targeted groups of affected households and project's beneficiaries including vulnerable and EM people; and (vi) key informant interviews with representatives of severely affected households, and local authorities involved in the project. The collected feedback from representatives of the stakeholders is taken into consideration for its inclusion in the final project design and the final version of the ESIA. The draft ES documents have been disclosed prior to WB’s appraisal locally and on the World Bank external website on January 27, 2022. The ES documents will continue being updated to reflect the outcomes coming from early disclosure and consultations. Furthermore, grievance redress mechanisms (GRMs), both physical and online, will be established to process complaints during implementation, including gender-based violence. A GRM focal point within the PMU-W will be appointed to coordinate different administrative levels for handling complaints in a timely and satisfactory manner following the project’s GRM included in the project SEP. B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. Public Disclosure ESS2 Labor and Working Conditions The project workers include PMU-W staff and their consultants working directly for the Implementing Agency (direct workers – approximately 85 staff and consultants), employees of civil works contractor and subcontractors (contracted workers – around 515 workers), and primary supply workers (e.g., providers of construction materials). No community workers are envisioned for this project. The workers in Vietnam are regulated and protected under a labor framework including the Labor Law (2012), the Law on Occupational Health and Sanitation (2015), and the Social Security Law (2014). The national policies and regulations reflect the principles of ESS2 on issues related to fair treatment, non-discrimination, and equal opportunities to workers, supporting the rights and benefits of workers, recognizing workers’ rights to establish or join associations of workers, prohibiting sexual harassment/forced labor/child labor, etc. The potential risks related to labor and working conditions, such as labor influx, child labor, forced labor, work- related discrimination and OHS risks, risks of sexual exploitation and abuse, and sexual harassment, risks of contamination during infectious disease outbreaks, and access to safe drinking water, power supply and limited availability of sanitation facilities, have been assessed during the preparation and will be addressed in the implementation of labor-management procedures (LMP). Key OHS risks relate to the dredging, moving equipment, noise, vibration, welding, chemical hazards, working environment temperature, working at heights, safety and hygiene in worker camps, waterway and road traffic safety, fire, and explosion. The LMP as part of ESMP has provided mitigation measures to address such risks and will be incorporated into procurement documents. The LMP includes a well-functioning and easily accessible grievance mechanism for project workers. The Borrower will include in the bidding documents, requirements for (i) a worker’s Grievance Mechanism (GM); and (ii) sensitization related to Feb 22, 2022 Page 11 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) the availability of worker’s Grievance Mechanism (GM) and on the of code of conduct to prevent and address potential harassment, child labor, and forced labor, gender or GBV/SEA/SH issues, intimidation and/or exploitation during the implementation of the project activities. The ESMP also includes measures to avoid and prevent potential hazards to workers under an OHS management plan (OHSMP) which ensure that all applicable health and safety legislation and the requirements set out in ESS2 and relevant sub-sections of the World Bank Group General EHS Guidelines are met during the construction and operation phases of the project. As part of each C-ESMP, an OHSMP will also be prepared to include: (i) an occupational health and safety, communication, and training program; (ii) provision of organization charts; (iii) safety regulations, responsibilities, accident and incident response and reporting, use of personal protective equipment (PPE), fire prevention measures, fall protection, and emergency preparedness; (iv) first aid and emergency response and transfer during construction; and (v) worker’s camp management. Furthermore, the construction supervisors will be responsible for support services to ensure that all sub-contractors adhere to the project OHSMP and report incidents and accidents as well as non-compliances in a timely manner. Construction will not be allowed unless UXO clearance has been completed. One expected challenge on the application of the LMP is the weakness of systematic labor inspection, especially when it comes to construction contractors and primary suppliers, where there is a heavy reliance on self-reporting. Thus, a strong emphasis has been placed on monitoring compliance, so the ESMP/LMP have included requirements on Occupational Health and Safety (OHS) and working conditions procedures and all relevant provisions that contractors need to prepare, implement, and monitor on all construction sites for ensuring basic safety around work Public Disclosure sites, use of personal protective equipment, and training and awareness education for workers. Also, the LMP includes a dedicated labor grievance mechanism for direct and contracted workers. Additional provisions and guidance have been included in a Code of Conduct, Worker camps requirements, or contractor’s general guide for COVID-19 considerations in construction/civil works. ESS3 Resource Efficiency and Pollution Prevention and Management The project is expected to use a substantial amount of resources and materials for construction of the river and canal embankment, bridge, access roads, and irrigation culvert works for agriculture. The ESIA has identified and assessed in detail the risks and impacts related to the release of pollutants, waste generation, management of dredged/excavation materials and hazardous wastes, and resource use efficiency. Mitigation measures have also been proposed and included in the ESMP. It is expected that approx. 4,500,000 m3 of dredged/excavated materials will be generated due to canal and river dredging/excavation. However, the ESIA confirmed that the dredging/excavation would not have significant impacts on the environment because: i) Dredging/excavation is a type of maintenance activity within existing waterways and modified river/canal habitats; ii) Dredging/excavation will be conducted in phases on a rolling basis with the dredging activities having reduced impacts on the water environment; iii) Dredged/excavated materials are not expected to be contaminated with hazardous substances such as heavy metals (i.e., As, Cd, Cr, Cu, Hg, Pb, Zn), pesticides, or hydrocarbons; iv) The dredged/excavation materials will be repurposed for ground levelling and gardening. For example, a soil bank was established in Ca Mau province for storing and selling of canal/rivers dredged materials. The Feb 22, 2022 Page 12 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) impacts of temporary/permanent disposal sites for the dredged/excavated materials on the environment can be managed with readily designed mitigation measures. Dredging activities on Mang Thit River may pose potential impacts on water supply due increased turbidity and sedimentation in the input water for the water treatment plants (WTP) including Vung Lien WTP and Cai Nhum WTP. However, Vung Liem and Cai Nhum WTPs are located 15km and 7.5km from the dredging sites on Mang Thit River. The sediment transport and diffusion model of sediment showed that maximum concentrations of suspended solids which are scattered from dredging will decrease rapidly to background values within 500m to the downstream of dredging locations. Therefore, no adverse impacts on the inputs water for these WTPs are expected. Nevertheless, further assessment will be undertaken to confirm this conclusion to be included in the final ESIA. A dredged material management plan will be prepared to manage the safe handling, storage and disposal of the dredged/excavated materials. Risks and impacts due to generation of non-hazardous wastes as well as hazardous wastes have also been addressed during the ESIA taking into account the standards of the World Bank Group Environment, Health, and Safety Guidelines. The risks and impacts related to the release of pollutants, waste generation, the management of disposal and dredged materials and hazardous wastes, impact on community, and resource use efficiency have been assessed in detail with appropriate proposed mitigation measures. Risks and impacts due to generation of non-hazardous waste as well as hazardous wastes will also be addressed during the ESA process taking into account the standards of the World Bank Group Environment, Health, and Safety Guidelines. Public Disclosure Upgrading the selected waterways will allow increased cargo volumes in larger vessels to navigate on corridors connecting the four largest ports in South Vietnam via more efficient routes, reducing transport costs, time, GHG emissions and accidents. Inland waterways transport is a low carbon transport mode compared with road and railways. Promoting inland waterways transport is considered one of the leading ways to reduce GHG emissions in the transport sector. The Project will lead to a net GHG emission reduction of 4.3 million tons of carbon dioxide equivalent (tCO2e) compared with the baseline emissions without the Project. The project is expected to generate some greenhouse gas (GHG) emissions during construction due to use of fossil fuels by construction machines. These GHGs include CO2, SO2, and NO2. During operation, the GHGs will be from the combustion of fossil fuels including diesel fuel, gasoline, biodiesel used by waterway transport means. The level of GHG emissions are not expected to be significant. To the extent technically and financially feasible the ESIA includes measures, specified in the WBG ESHG and other Good International Industry Practice, for efficient use of raw materials and for optimizing energy use and integrate them into the project technical design. ESS4 Community Health and Safety To address potential impacts related to project-induced labor influx during the construction phase, the project’s Sexual Exploitation and Abuse and Sexual Harassment (SEA/SH) risk of this project has been analyzed and screened as ‘Low’. The mitigation measures to address the potential risks and impacts related to labor influx are included in the project’s ESMP and LMP and will be contractually enforced by including codes of conduct in the bidding documents and C-ESMP. Feb 22, 2022 Page 13 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) Other aspects of community health and safety that have been considered during preparation include risks to human health, associated with water and road traffic safety, as well as the disposal of dredged materials, community health issues, and safety risks at the construction sites, hazardous substances generated during the construction process. These risks and issues have been assessed during the ESIA process and mitigation measures, and have been developed and incorporated as part of ESMP for application during the detailed design, bidding, construction, or operational phases. Regarding waterway and road traffic safety, the ESIA has identified and assessed the risks related to traffic and traffic safety risks that would affect local communities. Mitigation and risk management measures have been incorporated into the design of the river and canal upgrading. Measures to enhance waterway and road traffic safety during construction and operation phases have also been proposed. The ESIA has also considered the safety risks related to public access to the rivers and canals and the application of universal access in the detailed technical design. The ESIA has assessed risks posed by security arrangements to those within and outside the project site and the ESMP includes the measures to avoid, mitigate the identified risks in accordance with ESS4. Given and climate change context in the Mekong Delta, climate change considerations in the design and construction of the project infrastructure including the waterway channel, embankment, bridge, and access roads to endure climate resilience and community safety including waterway and road safety (especially for children, disabled/aged people). The ESMP has also considered the incremental safety risks when the public is using the footpaths and the application of universal access in the design of the project infrastructure. Standard measures in the World Bank Group Environment, Health, and Safety Guidelines (EHSG) to ensure the Public Disclosure community health and safety of communities during the construction of and operation of project financed infrastructure will be considered. These include the measures in general facility design and operation, communication and training, and the measures to address physical hazards, chemical hazards, personal protective equipment, special hazard environments, and Monitoring. In addition, impacts on ecosystem services will be assessed. To prevent Covid-19 exposure and infection to the project personnel and workers and transmission to the local community the following measures have been included in the ESMP: (1) Covid-19 prevention and control measures into the civil works and consulting packages; (2) adequate hygiene and personal protection equipment to personnel and workers; (3) physical distancing to minimize the chance of exposure to staff, workers, and visitors; (4) adherence to standard precautions procedures issued by the government; (5) training on Covid-19 prevention to personnel and workers; (6) closely monitoring of implementation measures by the PMU, construction supervision consultant, and the contractor; and (7) rapid response procedures to identify nearest medical services for referral, designate quarters for safe isolation of personnel with symptoms. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement A Resettlement Policy Framework (RPF) has been prepared prior to WB’s appraisal, as site-specific Resettlement Plan (RPs) could not be prepared prior to appraisal as the project's technical feasibility study (including detailed design) will not be finalized until implementation. Based on the inputs coming from the project’s technical Feasibility Study (FS), ESIA, and RPF, more accurate site-specific RPs will be prepared at the provincial level. It is also important to note Feb 22, 2022 Page 14 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) that since this project’s footprint covers several provinces, the Government of Vietnam requires to prepare an overall resettlement policy framework to harmonize and consolidate the policies/regulations applied in the whole project. According to initial assessments carried out for the preparation of the RPF, a total of 88.5 ha of land is likely to be acquired permanently to allow the construction activities. This would affect an estimated 1,068 households including ethnic minority and vulnerable households who live in the five provinces of Ben Tre, Dong Nai, Long An, Tien Giang, and Vinh Long. The types of impacts include (a) loss of lands, including residential, agricultural, and nonagricultural land; (b) loss of assets attached to lands, such as houses/structures/graves, standing crops, and trees; and (c) loss of income generation opportunities due to loss of land-based livelihoods and nonagricultural businesses and similar impacts; and (d) temporary impact on aquaculture/fishing of local people during the construction period. Also, the RPF includes provisions to ensure that the site-specific RPs address the land required for the disposal of significant amounts of dredged material described in the project’s ESIA. Also, the ESMP has proposed mitigation measures to minimize negative impacts on households and communities surrounding disposal areas and ensure dredged materials can be used for construction or other activities. If the land acquisition and resettlement activities impact ethnic minority PAPs, then Free, Prior, and Informed Consent (FPIC) may apply. Because of that, requirements for conduction FPIC have been included in the RPF and EMPF as guidance for the preparation of site-specific RPs and EMPs. The RPF also outlines a Grievance Redress Mechanism (GRM) which builds on government procedures and includes different ways (phone, text message, mail, e-mail or via a website, etc.) for affected people, including vulnerable Public Disclosure people to lodge their complaints; a timeframe for acknowledgment, response and resolution of grievances; and an appeals process (including the national judiciary) to which unsatisfied grievances may be referred when the resolution of grievance has not been achieved. The GRM will be included in site-specific RPs for implementation. Following the national legislation, the relevant Provincial People Committees (PPCs) and District People Committees (DPCs) will be responsible for Land Acquisition and Resettlement (LAR) in their administrative jurisdictions. This could be a challenge for the district government units as they may not have the capacity to deliver the land required for the project and resettlement sites on time, and capacity will be strengthened in line with the provisions included in the RPF. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources The project will be implemented within the existing waterways along the canals and rivers and will not be located within any critical or natural habitats and forests. Both the canals and rivers don’t directly or indirectly link to any important/critical habitat or ecosystem. There are no national forests in the area of Mang Thit, Cho Lach, Ky Hon, Rach La canals in those provinces Vinh Long, Ben Tre, Tien Giang and Long An. In the Can Gio protection forest there were recorded 157 floral species of 76 families distributing in whole area. In which, there are 35 species of mangroves belonging to 36 genera and 24 families. Pham Van Ngot et al (2006) reported 37 common mangrove species found in the Can Gio mangrove forest. Although Tac Cua River, which will be dredged under the project, borders the buffer zone of Can Gio protection forest that maintains and important large carbon sink, no land in the projection forest including land of the buffer zone will be acquired. None of the proposed investments is located Feb 22, 2022 Page 15 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) within or in proximity to any critical habitat or area of high biodiversity value. No project related facilities like transportation of construction material, extraction, and storage of construction material, setting up of contractors’ facilities, construction of access roads etc., are planned within Can Gio protection forest or buffer zone. The wetlands in the Mekong Delta which are also the national protected areas considered as hotspots include: i) Bau Sau Wetlands and Seasonal Floodplains – habitat of Siamese crocodiles (Dong Nai province); ii) Tram Chim National Park (Dong Thap province); iii) Mui Ca Mau National Park – three sides bordering the sea (Ca Mau province); iv) Lang Sen Wetlands Reserve (Long An province); and v) U Minh Thuong National Park (Kien Giang province). These wetlands are located from about 68km (Lang Sen wetlands) to about 168km (Mui Ca Mau national park) from the East – West corridor and are beyond the project areas of influence. The ESIA has been conducted in accordance with requirements of ESS6 during project preparation, including impacts on Can Gio protection forest and the modified natural habitats such as the waterways and their ecosystems during construction and operation. The ESIA has assessed the potential risks and impacts on modified habitats from the various project activities, including potential direct, indirect, and cumulative impacts on key biodiversity receptors to ensure that the project impacts on the aquatic species and the ecosystem of the Can Gio protection forest are well assessed and managed. Given the location and the nature of the project, the risks and impacts of the project on the protection forest and biodiversity are not expected to be significant. Site clearance, dredging activities and construction are likely to create adverse impacts on both local terrestrial and aquatic ecosystems. The project’s terrestrial areas are all altered and changed dramatically by human activities for a Public Disclosure long time. The ecosystems are mainly trees planted and livestock raised by local people. The presence of native fauna is poor and domestic animals are largely prevalent including cattle and poultry raised by households in their gardens such as chickens, ducks, pigs and cows. According to the consultation with the provincial Department of Natural Resources and Environment and local communities, there are no any endangered species nor species in need of protection within the project area. The adverse impacts on the terrestrial ecosystem and species are assessed as low. The aquatic flora on the rivers and canals is common water hyacinth, duckweed, and ceratophyllum. The aquatic fauna in the river is perch, tilapia, carp, tench, snakehead, and rohu. These fauna and flora have low biodiversity value. The rivers and canals are not a home for any endangered or protected species. The dredging and embankment activities may cause adverse impacts on aquatic ecological environment of rivers and canals including: loss of aquatic fauna and flora; loss of habitats that are feeding, breeding areas and shelters leading the reduction of number of fish community (carp, tench, perch…), shrimp, crap, snail…; temporary disruption of the benthic communities indirectly affecting the fish community which depends on the river bottom for food and reproduction, and also aquacuture. At this stage of the engineering study, it is identified that bend corrections will be made along the following rivers and canals: i) 10 locations along Mang Thit River with a total of 5,359m; ii) 2 locations with a total of 928m along Cho Lach canal; iii) 2 locations of with a total of 10,046m along Rach La canal; and iv) 2 locations of total of 1,233m along Tac Cua River. The bend corrections would range from 200m to 900m and would not result in blocking or separating the original river and canal course at each section. This activity will result in permanent changes in some of the environmental characteristics in the corridor of impact. The environment at the bend corrections is mainly rice paddy and/or land with low valued vegetation including small bushes and grass which are widespread and abundant. These species are of "least concern" according to the description of the conservation scale by IUCN. Therefore, the Feb 22, 2022 Page 16 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) adverse impact on the biological resources is not expected to be significant, and appropriated mitigation measures will be included in the dredge management plan and ESMP. The project dredging and excavation works in Mang Thit, Cho Lach, Rach La, Ky Hon, Tac Cua river/canal are expected to result in an increase of suspended solid wastes in the construction sites as well as in the downstream area. In addition, water runoff can transport materials (construction materials, soil, sand, grease and waste and so one) into aquatic areas causing water pollution. This impact is assessed at moderate level, temporary and can be mitigated. Mitigation of impacts of dredged materials and at disposal sites: Dredging activities will be carried out in the dry season; Leachate from sediment must be directed to a sediment tank/trap before being discharged back the canals; Dredging materials must use specialized trucks with trunk; the dredging activities must not be carried out in during irrigation for agricultural production; a dredging materials management plan should be prepared before initiating construction. To mitigate the impacts on river water quality and aquatic species, a Dredging Excavation and Management Plan will be prepared by the contractor. Dredging activities in the river and canals must be carefully scheduled to avoid the rainy season/spawning time. Dredged materials will be reused for leveling demand of the other project works or other activities as much as possible. Dredging materials will be transported to and disposed into designated dredging disposal sites. Wastewater will be dumped into sedimentation ponds and tested before being discharged into the environment. Waste disposal into rivers will be banned. Construction materials must be covered with canvas/material and stored in the places far from water sources. Opportunities for upgrading and expanding modified habitats, and “greening” infrastructure by ecologically friendly design and landscape design have been Public Disclosure considered and included in the project technical design. At this stage no significant biological resources which deem to be vulnerable, critical, or endangered located within the immediate area of influence are along the corridor of impact in the project area. Any additional identified significant biological resources will be assessed and updated in the final ESIA. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities The Khmer people are present in some sections of the project area in Tra On district, Vinh Long province, and have a long history of collective attachment to the land they occupy (along with a distinct identity, language, and socio- cultural institutions). They represent the second largest population in Vinh Long province, accounting for 2.1% of the province's population, and mainly reside in remote and isolated communities along canals. Thus, the draft Ethnic Minority Planning Framework (EMPF) has been prepared, consulted, and disclosed prior to the appraisal. In those areas, where Khmer people are confirmed as present and potentially affected (following the four criteria stated in para 8 of ESS7). The EMPF includes procedures for the preparation of site-specific Ethnic Minority Development Plans (EMDPs) to be prepared post-appraisal, during implementation. The initial social assessment shows that the project will mainly positively impact EM groups. However, potential negative impacts foreseen include land acquisition, impacts on livelihoods related to farming or fishing activities, and possible disruption caused by labor influx. The project may affect some traditional festivals of Khmer people which Feb 22, 2022 Page 17 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) are organized on the river/canal during the construction period. Specific impacts and mitigation measures will be identified and included in the site-specific EMDPs. The project’s EMPF includes provisions for conduction of FPIC, when required, following ESS7 requirements, for the preparation of site-specific EMDPs and, if needed, RPs. Also, the EMPF includes provisions to be fulfilled by the site- specific EMDPs on screening, culturally-appropriate stakeholder engagement activities and grievance management procedures, disclosure of information, and mitigation / benefit-enhancement measures for EMs in line with the provisions included under ESS7. ESS8 Cultural Heritage The famous intangible culture in the MKD region is the Ok Om Bok festival of Khmer people which is organized annually in Dec (or Lunar calendar Oct ) with a famous Ghe Ngo (boat) race on the rivers/canals. There is a risk that project activities may affect this traditional festival during the construction period, but this should be possible to avoid forward planning and adjust the schedule of project activities as necessary to avoid disrupting the Khmer boat festival. Mitigation measures have been proposed in ESMP and will be included in C-ESMP of contractors. No recognized national and international cultural heritage resources are found to be in proximity to the project areas. However, the construction activities may partially affect the operation of some local pagodas, churches, and temples. The impacts include inconvenient accessibility, dust, noise, exhaust gases, and other sanitary and safety conditions, which may cause inconvenience for the people who come to visit the churches and temples. The ESIA includes the Public Disclosure appropriate measures to mitigate the potential impacts on cultural heritage in line with the national legislation and ESS8. A chance finds procedure is also included in the ESMP for addressing unexpected cultural heritage resources found during construction. ESS9 Financial Intermediaries The project will not channel funds through financial intermediaries, but will be managed by a central implementing agency. B.3 Other Relevant Project Risks No other relevant project risks envisaged. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways Yes The proposed Project interventions will be implemented on canals, tributaries or distributaries of the Mekong River. There will be no Project intervention on its mainstream. The Project interventions will also be implemented on the Can Giuoc River, a tributary of the Vam Co River, and on the Tac Cua River, a distributary of the Dong Nai River, a tributary to the Saigon River. The Mekong River, the Vam Co River, and the Saigon River are considered international waterways for the purposes of the World Bank’s Operational Policy regarding Projects on International Waterways (OP 7.50). Given the nature and location of the proposed Project activities, it is the considered view of the World Feb 22, 2022 Page 18 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) Bank that these proposed investments would not adversely affect the quality or quantity of water flows of the concerned international waterways to other riparians or adversely affect their possible water use. The World Bank, on behalf of the Government of Vietnam, sent a notification letter to the Mekong River Commission, People’s Republic of China, Lao People's Democratic Republic, Union of Myanmar, Kingdom of Thailand, and Kingdom of Cambodia on Januray 28, 2022 with the expected comments from the governments of these countries and the Mekong River Mission by February 28, 2022. The notification process was carried out in accordance with the Policy. OP 7.60 Projects in Disputed Areas No The project is not implemented in any disputed areas as defined by OP 7.60. 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: Although Vietnam has an advanced E&S Framework, there are gaps between the environmental and social assessment regulation and practice, especially in description of the environment, social impact assessment, level of impact analysis, and mitigation measures (especially for its social aspects), and public consultation and disclosure of information. In addition, there is no experience of the implementing agencies in implementing and applying ESF and its associated environmental and social standards. Therefore, there are no plans to use the Borrower’s E&S Framework within this project. Public Disclosure IV. CONTACT POINTS World Bank Contact: Yin Yin Lam Title: Senior Transport Specialist Telephone No: 5720+71270 / - -6517-1270 Email: ylam@worldbank.org Contact: Phuong Thi Minh Tran Title: Senior Transport Specialist Telephone No: 5777+7357 / 84-243-9367357 Email: ptran1@worldbank.org Contact: Anita Shrestha Title: Transport Specialist Telephone No: +1-202-473-0083 Email: ashrestha@worldbank.org Borrower/Client/Recipient Borrower: Socialist Republic of Vietnam Implementing Agency(ies) Implementing Agency: Ministry of Transport Feb 22, 2022 Page 19 of 20 The World Bank Southern Waterways Logistics Corridors (P169954) 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): Phuong Thi Minh Tran, Yin Yin Lam, Anita Shrestha Practice Manager (ENR/Social) Susan S. Shen Cleared on 20-Feb-2022 at 23:23:14 GMT-05:00 Safeguards Advisor ESSA Nina Chee (SAESSA) Concurred on 22-Feb-2022 at 11:33:12 GMT-05:00 Public Disclosure Feb 22, 2022 Page 20 of 20