The World Bank Palestinian Heritage Trail: Increased Economic Opportunities and Improved Livelihood for Fragile Communities (P170706) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 06/20/2022 | Report No: ESRSA01529 Jun 20, 2022 Page 1 of 10 The World Bank Palestinian Heritage Trail: Increased Economic Opportunities and Improved Livelihood for Fragile Communities (P170706) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) West Bank and Gaza MIDDLE EAST AND NORTH P170706 AFRICA Project Name Palestinian Heritage Trail: Increased Economic Opportunities and Improved Livelihood for Fragile Communities Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Finance, Competitiveness Investment Project 12/22/2021 and Innovation Financing Borrower(s) Implementing Agency(ies) Palestinian Heritage Trail Palestinian Heritage Trail, Palestinian Heritage Trail Public Disclosure Proposed Development Objective To increase economic opportunities and improve livelihood for Palestinian individuals, present in fragile communities along the Palestinian Heritage Trail, across the West Bank, with a special focus on women and youth. Financing (in USD Million) Amount Total Project Cost 2.40 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 aims to benefit about 2,700 Palestinian individuals present in about 50 fragile communities along the Palestinian Heritage Trail across all the West Bank. There will be a special focus on women and youth, and it is estimated that at least 40% of the beneficiaries will be women and 25% youth. Jun 20, 2022 Page 2 of 10 The World Bank Palestinian Heritage Trail: Increased Economic Opportunities and Improved Livelihood for Fragile Communities (P170706) To this purpose, the project will use the financing from the JSDF to promote local community development through the implementation of the following two components: (1) Community Driven Development ($1,715,000); and (2) Project Management and Administration, Monitoring and Evaluation, and Knowledge Dissemination ($685,000). The first component 'Community Driven Development' ($1,715,000) will include three sub-components as follows: 1) Sub-component 1.1: Tourism Communities Development (US$1,160,000)- This activity will finance community- subprojects, including trainings and sub-grants to improve community-based tourism experiences, start and grow their businesses, and improve the outreach and communication with tourists/visitors using digital means; 2) Sub- component 1.2: Fostering Entrepreneurship (US$460,000)- This activity will finance subprojects that foster entrepreneurship for startups and existing businesses at an individual, firm-level, with a focus on female and young entrepreneurs, to create new tourism experiences along the PHT; and 3) Sub- component 1.3: Promoting Outreach (US$95,000) that will support the development of an interactive digital platform for community-based tourism in the West Bank and some awareness and promotion activities to promote the most vulnerable groups and communities. The second component 'Project Management and Administration, Monitoring and Evaluation, and Knowledge Dissemination' (US$685,000) includes the following three sub-components: (i) Project Management and Administration; (ii) Monitoring and Evaluation; and (iii) Knowledge Dissemination. The Palestinian Heritage Trail will be the implementing agency of the project. Public Disclosure 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 is implemented along the Palestinian Heritage Trail ( formerly known as Abraham Path/Masar Ibrahim) which is the longest trail in the West Bank. The area surrounding the Trail is mostly developed rural area, with some stretches of the trails passing through undeveloped natural habitats (but no critical habitats) and other stretches passing through major cities. The trail passes through areas of high cultural heritage value such as the historic areas of Nablus, Jericho, Bethlehem and Hebron. The rural areas of the trail would include limited activities and are associated, in general, with limited noise/air emissions, however, such rural communities typically suffer from some environmental issues related municipal waste and wastewater management . There are more than 60 rural, marginalized communities, some of which are living below the poverty line, where vulnerability is measured by the Local Government Unit (LGU) Asset Index. Most of these very poor and marginalized communities are not targeted by other programs given their locations, the lack of connectivity among them, the lack of information about current places of residences of Palestinian citizens, and the FCV context. About 56 of these communities were previously targeted by the first Abraham Path project in specific activities, and benefitted from the investment in the Trail’s soft- infrastructures and the establishment of the Palestinian Heritage Trail (PHT). D. 2. Borrower’s Institutional Capacity The Trail has been originated by the Abraham Path Initiative (API), a nonprofit, non-religious and non-political organization based in Boston, USA. Founded at Harvard University's Global Negotiation Initiative, API’s mission is to inspire people worldwide through stories, walking, and hospitality along the ancient Path of Abraham. Its vision is to Jun 20, 2022 Page 3 of 10 The World Bank Palestinian Heritage Trail: Increased Economic Opportunities and Improved Livelihood for Fragile Communities (P170706) help build a world that has moved beyond fear and hostility to hope and hospitality, developing the Abraham Path/Masar Ibrahim as a long-distance cultural walking route through the Middle East, and as a place of meeting and connecting different people from the region and around the world. The Trail is also meant to stimulate improvement and extension of local and national walking trails to encourage economic development. To reach its mission, API works in close cooperation with local partners in each country in the Middle-East. In the West Bank, its partner is PHT formerly known as Masar Ibrahim Al-Khalil (MIAK), whose establishment API supported in 2013, with the specific mandate to develop the Trail in the West Bank. PHT is a Palestinian nonprofit based in Beit Sahour which is developing the Trail in the West Bank as a community- based tourism project. The organization promotes cultural diversity, tradition, human values, and environmental awareness. PHT is a union of three Palestinian organizations, which has a close working relationship with Bethlehem University. API and primarily PHT are the only organizations working in the West Bank and Gaza with detailed data regarding community-based tourism. This makes PHT a leading local player in the field, a position that is supported by the Ministry of Tourism and Antiquities (MOTA) and by other main stakeholders that see PHT as the natural Destination Management Organization (DMO) of the Trail. In 2013 the World Bank decided to provide financing through its State and Peace Building Fund (SPF) to a grant operation to contribute to job creation and income generation for rural communities along the Trail in the West Bank and to capture a set of lessons that could be applied in other fragile and conflict-affected situations (FCS). This first project was recipient-executed, and the implementation of the project’s technical activities relied heavily on API in the first years of operation, mainly in areas relevant to way-marking, safety training, M&E, and marketing. As the Public Disclosure project progressed, API delegated most of these activities to PHT, to build the local capacity in trail development and promotion. To this purpose, in late 2013, API entered into ‘a Service Agreement with PHT to implement part of the activities throughout the time frame of the project. At the end of the project, PHT became responsible for implementing most of the project’s technical activities while API maintained primarily a project management role. For the project to be financed by the Japan Social Development Fund (JSDF), MOTA recommended to work with PHT as the grant recipient and implementing agency, since they recognize PHT like the naturally responsible organization for the development of the Trail (Destination Management Organization of the PHT). While PHT has great technical capacity, including some capacity in related aspects such as safety, it has no dedicated Safety, Health and Environment (SHE) department or environmental and social expert to support the requirements of the World Bank’s Environmental and Social Framework (ESF). The project Monitoring and Evaluation (M&E) Specialist (to be engaged by PHT) will undertake, as part of his/her assignment, the environmental and social (E&S) management responsibilities of the project including E&S screening for subprojects, supervising the preparation of site/sub-project specific instruments (as required), monitoring beneficiaries/contractors compliance with E&S requirements and relevant reporting. The M&E Specialist will be supported by a part-time Environmental and Social Consultant that will also be recruited by PHT. II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate Jun 20, 2022 Page 4 of 10 The World Bank Palestinian Heritage Trail: Increased Economic Opportunities and Improved Livelihood for Fragile Communities (P170706) Environmental Risk Rating Moderate The project will finance under component 1 community- subprojects, mainly projects of a soft nature, to promote the touristic activities along the PHT. However, the project will also fund upgrading activities of existing facilities (rehabilitation/renovation/refurbishment), purchasing and installation of equipment for the wine, traditional food, olive oil making, herbal soap, which might be associated with potential adverse environmental impacts and risks. This might include OHS risk including exposure to electrical hazards from the use of tools, lifting of heavy equipment and falling and falling objects and handling and disposal of generated waste. Also, the project will finance activities like cleaning of walks and plantation of trees, organic farming, which will be associated with some waste management and OHS risks. In addition, the increasing touristic activities could lead to uncontrolled practices by visitors, especially if unorganized visitors go directly to the Trail, for example for barbecues which would lead to damage such as fire and littering. Other environmental risks include, noise, dust and handling and disposal of chemicals which is used in herbal soap making. The environmental risk is classified as Moderate, given that the environmental risks mentioned above are low in scale, as the size of facilities are relatively small, predictable and could be managed by available means and limited to the footprint of the project facilities. Social Risk Rating Moderate The potential social risks relate to: elite capture and lack of transparency in allocation of grants; exclusion of sub- groups within vulnerable categories (e.g. women headed households; youth out of school and unemployed; population from households with disabled members or members with chronic disease etc.) due to lack of information (in accessible formats) about how to access and avail of project benefits and meaningful engagement with these categories; labor and working conditions for the project’s direct and contracted workers; incidence of GBV and SEA/SH for women and youth due to increased tourist activities in the project area; and community health and safety Public Disclosure concerns associated with transmission of diseases such as Covid-19. The project will not involve any land taking and hence there is no risk related to involuntary resettlement. Small civil works will be on existing land owned by beneficiaries and there will be no expansion of existing or building of new facilities. Private individuals/firms seeking co-financing to establish new enterprises will need to demonstrate adherence to willing-buyer willing-seller criteria to meet any land needs to qualify. The ESMF and POM will include an exclusion list of activities requiring any involuntary resettlement or land acquisition. Direct and contracted workers will be involved in the project activities. The key labor risks are related to workers’ occupational health and safety and poor working conditions. Draft Labor Management Procedures (LMP) have been prepared to set out the Project’s approach to meeting national requirements as well as the objectives of the Bank’s ESF concerning labor and working conditions (ESS2). The LMP contains terms and conditions of employment; and measures for nondiscrimination and equality of opportunity, workers’ organizations, prevention of child or forced labor engaged in the project, prevention of SEA/SH amongst workers and other personnel, and adequate OHS. A labor GM, also sensitive to complaints linked with SEA/SH, will also be established as per the LMP. 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: Jun 20, 2022 Page 5 of 10 The World Bank Palestinian Heritage Trail: Increased Economic Opportunities and Improved Livelihood for Fragile Communities (P170706) This is a community-driven project and sub-projects and project activities, their locations, and targeted communities will be defined during project implementation. As most of the sub-project locations are not known at appraisal, PHT has prepared an ESMF, that identified the main E&S risks and impacts of the project as well as the mitigation measures. The ESMF includes a screening process for sub-projects that excludes ineligible subprojects from the E&S perspective, and identifies E&S site-specific instruments that need to be prepared for different sub-project. The ESMF identifies the institutional framework, the monitoring and reporting requirements and capacity building needs for the E&S management of the project. Sub-project associated with E&S risks will need to prepare site-specific Environmental and Social Management Plans (ESMPs) using the guidelines demonstrated in the ESMF. The Project Operational Manual (POM) will include additional details on the procedure for preparation, clearance and implementation of the ESMP recommended measures. For the matching grant scheme, the project will also explore the formation of inclusive community-based committees and engage community members in a participatory needs assessment and in the clustering approach that will be implemented. The project M&E specialist will be responsible for implementation of the project’s E&S requirements in line with the relevant Environmental and Social Standards (ESSs). ESS10 Stakeholder Engagement and Information Disclosure The main stakeholders are the communities living along the PHT (approximately 60 communities). The project will provide livelihood and economic opportunities to about 50 communities, mainly rural and fragile, with particular focus on women and youth. It is estimated that at least 40% of the beneficiaries will be women and 25% youth. The PHT will engage with the project’s stakeholders such as local women’s associations, youth groups, local councils, Public Disclosure relevant CBOs and CSOs, and with individuals such as homestay hosts, guides, transport providers, and local business owners that want to start or strengthen their entrepreneurial activities along the Trail. The project will reach out to vulnerable groups in marginalized communities usually excluded from mainstream tourism activities in the West Bank such as Bedouin communities. Most of these are very poor and are not targeted by other programs given their locations, the lack of connectivity among them, the lack of information about current places of residences of Palestinian citizens, and the FCV context. Concerted effort will be made to ensure women are represented by at least 35 percent of the participants receiving “Managers of the Trail” training, with some of the training exclusively targeting women through coordination with women led NGOs, cooperatives and linked back to women centers who were engaged in parent project. For the design of the project’s components and for the identification of its activities, PHT team conducted (in 2018 and 2019) several rounds of consultations with potential beneficiaries and stakeholders that included around 23 communities. Later, in November 2020, the PHT team conducted a virtual public consultation meeting with 17 participants representing homestay hosts, tour guides, community organizations and local authorities in line with the ESS10 requirements. A SEP, consistent with ESS10 requirements, has been prepared by PHT and will be reviewed and cleared by the World Bank and disclosed both on the PHT and the World Bank’s websites prior to project appraisal. The SEP includes various tools of engagement with project affected people and stakeholders throughout the life of the project. The PHT has sought the views of stakeholders on the SEP, including on the identification of stakeholders and the proposals for future engagement. If significant changes are made to the SEP during the life of the project, the PHT will redisclose an updated SEP (as agreed in the project Environment and Social Commitment Plan, ESCP). In line with ESS10, the PHT will also implement a grievance mechanism to receive and facilitate the resolution of project concerns and grievances in a timely manner. The grievance mechanism shall also include special tools for receiving and handling GBV, SEA/SH cases and a referral system. In order to control the risks of Covid-19 virus transmission, Jun 20, 2022 Page 6 of 10 The World Bank Palestinian Heritage Trail: Increased Economic Opportunities and Improved Livelihood for Fragile Communities (P170706) PHT will be advised, when conducting stakeholder consultation meetings, to take into account the national restrictions regarding public gatherings during the Covid-19 pandemic and the World Bank note on “Public Consultations and Stakeholder Engagement in WB-supported operations when there are constraints on conducting public meetings”. 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 ESS2 is relevant to the current project setting since the project will engage a number of workers who will be PHT employees assigned and/or recruited to work on the project implementation and training activities (direct workers). Those will include the Project Manager, the General Director, the Gender Specialist, the Accountant and the Monitoring and Evaluation Officer. Consultants may also be recruited by PHR to support different requirements. In addition, beneficiary firms receiving grants would likely use contractors that would be engaging trainers to upskill their workforce and workers to work on small construction activities and installation of equipment in sub-projects such as painting for marking the tourism Trail, plantation of trees and cleaning of walks for outdoor activities on the Trail as well as small construction activities associated with rehabilitation, furnishing and equipping existing rooms and shops during startups and already existing businesses at an individual and firm-level. Consequently, direct and contracted workers will be involved in the project activities. An LMP has been prepared for the project and will be reviewed and disclosed (in-country and on the Bank’s external website) within a month of effectiveness. The LMP has assessed the key labor risks which are related to workers’ occupational health and safety, child labor and poor Public Disclosure working conditions. The LMP sets out the Project’s approach to meeting national requirements as well as the objectives of ESS2. The LMP addresses terms and conditions of employment, measures for non-discrimination and equality of opportunity, workers’ organizations, measures for prohibition of child or forced labor in the project, prevention of SEA/SH amongst workers and other personnel, adequate OHS measures, and, establishment of a GM for workers that is also responsive to complaints associated with SEA/SH. In the ESCP, PHT undertakes to include, in the tender documents and in the contracts of suppliers/beneficiaries, measures relating to OHS. A Code of Conduct will be prepared and attached to the procurement documents. Workers will be recruited locally, hence no labor influx will be expected. ESS3 Resource Efficiency and Pollution Prevention and Management ESS3 is relevant to the project as it will involve construction and operation activities that would generate wastes, could cause pollution and consume limited amounts of water, energy and raw materials. Increased solid waste generation is expected during implementation as a result of the minor constructions /rehabilitation /installation activities, as well as due to the increased economic activities from community sub-projects from olive oil, herbal soap, wine, handcrafts, traditional food, and organic farming, including touristic activities, in the communities along PH Trail. Also, hazardous materials such as the paint that will be used for upgrading the business and the caustic soda especially used for herbal soap making has low probability but possible. There would be some issues related to water consumption in organic farming and energy use in some production facilities. These issues has been addressed in the draft ESMF and will be further elaborated in subprojects’ site-specific instruments. Jun 20, 2022 Page 7 of 10 The World Bank Palestinian Heritage Trail: Increased Economic Opportunities and Improved Livelihood for Fragile Communities (P170706) ESS4 Community Health and Safety This standard is relevant. The project involves very few civil works/construction activities and this is not expected to adversely affect local communities’ health or safety. In addition, activities of beneficiary firms/individuals are not expected to induce labor influx that might lead to significant adverse social impacts (such as SEA/SH and communicable diseases) on local communities. However, the increased tourism, both local and international, will increase interaction with communities that are remote and comparatively less used to outside visitors. Increased interaction may raise the risk of exposure to the COVID-19 for the project communities. Increased interaction will also raise the risk of GBV and SEA/SH for vulnerable youth and women in such communities. The project will ensure the avoidance of any form of GBV and SEA/SH of community members by establishing special tools for receiving and handling SEA/SH cases and complaints including referral pathways. The project GM will also include specific procedures for GBV including confidential reporting and ethical documentation of GBV cases. Community health and safety risks may include uncontrolled practices by visitors, such as barbecues which would lead to damage such as fire and littering. PHT will develop security and safety plan which will include training materials on safety and security as part of the capacity building and awareness campaigns to the beneficiaries and communities. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement This standard is not relevant. The small civil works will be on existing beneficiary firms’ grounds which are owned by beneficiaries. No expansion of facilities or building of new facilities will be part of the project, therefore, no new land will be acquired or accessed. Private individuals/firms seeking co-financing to establish new enterprises will need to demonstrate adherence to willing-buyer willing-seller criteria to meet any land needs in order to qualify and no land Public Disclosure acquisition and resettlement will be required. The ESMF, includes an exclusion list of activities that the project will not support, including any projects that could lead to involuntary resettlement or land acquisition. In addition, the POM will include eligibility criteria to exclude any sub-project involving land issues. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources ESS6 is relevant to this project. The project will not affect biodiversity or habitats nor will it affect any ecosystem services. Project activities will not involve any removal of trees or vegetation nor will it have any impacts on biodiversity. Furthermore, the project does not involve the management of any living natural resources. However, traditions and customs of the communities along the path will serve as tourist attraction. The increased number of visitors along the Trail is indirectly expected to result in potential damage to the natural habitat and disturbance to wildlife along the Trail due to possible vandalism actions of the visitors. PHT shall develop environmental guidelines for beneficiary firms/individuals/contractors to prevent degrading natural and physical integrity, damage the natural habitat and wildlife. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities ESS7 is not relevant to the project as there are no indigenous peoples/Sub-Saharan African Historically Underserved Traditional Local Communities in the area. Jun 20, 2022 Page 8 of 10 The World Bank Palestinian Heritage Trail: Increased Economic Opportunities and Improved Livelihood for Fragile Communities (P170706) ESS8 Cultural Heritage ESS8 is relevant in this project, although none of the physical, cultural, and/or archaeological sites will be impacted by the project. As chance findings are unlikely, but possible during the small-scale community activities, such as creating inter-community walks, through way-marking and signages; planting trees and gardening of some areas; improving first aid stops, an adequate clause will be included to environmental assessment documentation providing management procedures (ESMP Checklists and site specific ESMPs). Procedures in the case of chance findings will follow the national procedures as requested by MoTA. The traditions and customs of the communities along the path will serve as tourist attraction in addition to the physical, cultural, and/or archaeological sites. The increased number of visitors along the Trail may indirectly expected to result in potential degradation (vandalism) of natural and physical integrity in the area if the management practices in the eco-tourism places along the Trail were not adequate. PHT has developed a set of guidelines on “leave no trace” that will be disseminated to communities along the trail. PHT will provides training on the guidelines cultural heritage preservation to women centers, CBOs, tour guides, and home stay hosts. PHT is committed to continue these training to localities along the Trail on a continuous basis and during the project’s lifecycle. ESS9 Financial Intermediaries Not Relevant to the project as the project will not use financial intermediaries as an instrument for channeling funds to the beneficiary communities in the project area of influence. Public Disclosure B.3 Other Relevant Project Risks No other relevant risks are envisaged at this stage. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No 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: N/A IV. CONTACT POINTS Jun 20, 2022 Page 9 of 10 The World Bank Palestinian Heritage Trail: Increased Economic Opportunities and Improved Livelihood for Fragile Communities (P170706) World Bank Contact: Abdalwahab Khatib Title: Senior Financial Sector Specialist Telephone No: 5366+6515 / 972-2-236-6515 Email: abedkhatib@worldbank.org Borrower/Client/Recipient Borrower: Palestinian Heritage Trail Implementing Agency(ies) Implementing Agency: Palestinian Heritage Trail Implementing Agency: Palestinian Heritage Trail 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 Public Disclosure VI. APPROVAL Task Team Leader(s): Abdalwahab Khatib Practice Manager (ENR/Social) Lia Carol Sieghart Cleared on 31-Aug-2021 at 17:06:47 GMT-04:00 Jun 20, 2022 Page 10 of 10