WORLD BANK ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN Republic of Panama Ministry of Environment Panama Sustainable Rural Development and Biodiversity Conservation Project (P178063) Draft for Appraisal ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) June 6, 2022 Page | 1 WORLD BANK ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Republic of Panama (the Recipient) will implement the Panama Sustainable Rural Development and Biodiversity Conservation Project (the Project), with the involvement of the Ministry of Environment (MiAmbiente), as set out in the Grant Agreement. The International Bank for Reconstruction and Development (the Bank), acting as the administrator of the Global Environment Facility (GEF), has agreed to provide financing (P178069) for the Project, as set out in the referred agreement. 2. The Recipient shall ensure that the Project is carried out in accordance with the Environmental and Social Standards (ESSs) and this Environmental and Social Commitment Plan (ESCP), in a manner acceptable to the Bank. The ESCP is a part of the Grant Agreement. Unless otherwise defined in this ESCP, capitalized terms used in this ESCP have the meanings ascribed to them in the referred agreement. 3. Without limitation to the foregoing, this ESCP sets out material measures and actions that the Recipient shall carry out or cause to be carried out, including, as applicable, the timeframes of the actions and measures, institutional, staffing, training, monitoring and reporting arrangements, and grievance management. The ESCP also sets out the environmental and social (E&S) instruments that shall be adopted and implemented under the Project, all of which shall be subject to prior consultation and disclosure, consistent with the ESS, and in form and substance, and in a manner acceptable to the Bank. Once adopted, said E&S instruments may be revised from time to time with prior written agreement by the Bank. 4. As agreed by the Bank and the Recipient, this ESCP will be revised from time to time if necessary, during Project implementation, to reflect adaptive management of Project changes and unforeseen circumstances or in response to Project performance. In such circumstances, the Recipient through MiAmbiente and the Bank agree to update the ESCP to reflect these changes through an exchange of letters signed between the Bank and the Recipient’s Director of the Office of Protected Areas and Biodiversity at MiAmbiente. The Recipient shall promptly disclose the updated ESCP. Page | 2 RESPONSIBLE MATERIAL MEASURES AND ACTIONS TIMEFRAME ENTITY/AUTHORITY MONITORING AND REPORTING A REGULAR REPORTING Starting from the Effective Date, semiannually MiAMBIENTE - Project throughout Project implementation jointly with the Implementation Unit (PIU) MiAMBIENTE shall prepare and submit bi-annual monitoring reports on Project Reports with the timeframe specified in the environmental, social, health and safety (ESHS) performance of the Section II to Schedule 2 of the Grant Agreement. Project, in a manner and with a content that is acceptable to the Bank. Reports shall include, at minimum, the following: • Status of implementation of the ESCP. • Status of preparation and implementation of all environmental and social documents referred to in the ESCP. • Summary of activities to be performed during the following period. • Summary of capacity support and training activities. • Summary of disclosure, participation and consultation activities conducted during the period. • Record of complaints and grievances received and resolved during the period through the grievance redress mechanism established for workers and the community. The Project Operational Manual (POM) shall include an annex indicating the minimum content and format of the corresponding reports, as well as their frequency and processes. Page | 3 RESPONSIBLE MATERIAL MEASURES AND ACTIONS TIMEFRAME ENTITY/AUTHORITY B INCIDENTS AND ACCIDENTS 1. Notify the Bank, through the Flash Report, MiAMBIENTE - PIU within 48 hours after learning of the 1. Flash Report: Promptly notify the Bank of any incident or accident incident/accident. related to the Project which has, or is likely to have, a significant 2. Send the Bank the Detailed Report on the adverse effect on the environment, the affected communities, the incident/accident within ten business days after public or workers. Said prompt notice shall contain basic the event has occurred. information on the incident or accident, its severity (explicitly stating whether it has resulted in death) and the circumstances under which it occurred, as well as any immediate measures taken or that are planned to be taken to address it. 2. Detailed Report: Subsequently, prepare and send to the Bank a report with details on the incident or accident and any measures required to prevent its recurrence. The POM shall include an annex with the minimum content and format of the Flash Reports and Detailed Reports. C REGULAR REPORTS BY CONTRACTORS AND/OR THE BENEFICIARY Contractors responsible for the implementation of MiAMBIENTE - PIU ORGANIZATIONS OF THE SUBPROJECTS civil works shall prepare and deliver to the PIU monthly monitoring reports throughout the Include in the civil works contracts the obligation to provide the PIU with corresponding works. monitoring reports, which shall include, inter alia, information on ESHS aspects. The PIU, in turn, shall forward these reports to the Bank as part of The Project field technicians shall prepare subproject the semiannual reports (see Action A). monitoring reports throughout Project implementation. Include in agreements with subproject beneficiary individuals or organizations (hereinafter, SPBs), as applicable, the obligation to provide The PIU shall forward these reports to the Bank on a the PIU with details for the monthly monitoring reports to be prepared by bi-annual basis, through the bi-annual reports referred the Project field technicians, which shall include, inter alia, information on to in Action A. ESHS aspects. The Project field technicians, in turn, shall prepare monthly monitoring reports on the subprojects. The PIU shall forward these reports to the Bank as part of the bi-annual reports (see Action A). The POM shall contain an annex with the minimum content and format of the subproject reports. Page | 4 RESPONSIBLE MATERIAL MEASURES AND ACTIONS TIMEFRAME ENTITY/AUTHORITY ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE The organizational structure of the PIU and the MiAMBIENTE - PIU hiring or appointment of the aforementioned MiAMBIENTE shall establish and maintain, as part of its Project qualified personnel at the central level shall be Implementation Unit (PIU), an organizational structure with qualified staff completed no later than thirty (60) days after the to support the management of the Project’s ESHS aspects, under terms of Effective Date and remain in place throughout reference approved by the Bank and with qualifications and experience Project implementation. acceptable to the Bank. This support shall last throughout Project implementation and shall include (these elements will be assessed and adjusted throughout Project implementation, as necessary): At the central level: • Appoint one (1) full-time environmental specialist. • Hire one (1) full-time social specialist with experience in matters of gender and indigenous peoples. 1.2 FIELD TECHNICIAN PERSONNEL At the start of activities under Project Component 2, MiAMBIENTE - PIU as necessary and throughout Project MiAMBIENTE shall hire or appoint technical assistance personnel implementation. responsible for supporting SPBs in the design and implementation of the socioenvironmental measures established in the Project’s respective Environmental and Social Instruments and POM, as necessary. Page | 5 RESPONSIBLE MATERIAL MEASURES AND ACTIONS TIMEFRAME ENTITY/AUTHORITY 1.3 SUBPROJECT AGREEMENTS AND INTERINSTITUTIONAL 1. Subproject Agreements with SPBs shall be MiAMBIENTE - PIU ARRANGEMENTS signed before starting activities in the respective subprojects. 1. Draft (with a content that is acceptable to the Bank), sign and cause to comply with Subproject Agreements between the SPBs and 2. The establishment of the Subproject Evaluation MiAMBIENTE, which specify, at a minimum, that the SPBs shall and Selection Committee shall be a withdrawal comply with the requirements of the ESMF, LMP, PF and SEP and condition for subgrants under Part 2.2 of the POM in the subprojects in question, all in accordance with Section Project.. Once established, operate and maintain 2.03(c) of the Annex to the Grant Agreement. the Subproject Evaluation and Selection Committee throughout Project implementation.. 2. Coordinate and establish a Subproject Evaluation and Selection Committee comprising, among other members, a Social and an Environmental Specialist, to evaluate proposals submitted under the project Call for Proposals and, using criteria to be defined in the POM, and select those to be developed into Eco-Business Plans, approved, and financed under the project. Page | 6 RESPONSIBLE MATERIAL MEASURES AND ACTIONS TIMEFRAME ENTITY/AUTHORITY 1.4 ENVIRONMENTAL MANAGEMENT TOOLS AND INSTRUMENTS 1. The ESMF shall be finalized no later than 30 days MiAMBIENTE - PIU after the Project’s Effective Date. The draft ESMF 1. Finalize, adopt, and disclose the Environmental and Social approved by the Bank shall be applied in a Management Framework (ESMF) in a manner and with a content manner acceptable to the Bank until the ESMF is acceptable to the Bank and consistent with the ESSs. completed. The ESMF shall be implemented throughout the entire duration of the Project. 2. Assess and exclude from the Project any proposed subprojects 2. Throughout Project implementation, as and other activities according to the Exclusion List contained in necessary. the ESMF and the POM. 3. Throughout Project implementation, as necessary. The PIU shall review, finalize, and 3. Manage, coordinate, and track the inclusion of relevant approve the subprojects, as applicable, in the environmental and social management requirements and following timeframes: a) In the case of measures in the subprojects, according to the Project’s subprojects or activities with procurement environmental and social instruments and the POM. Check that processes carried out at the central level: before SPBs adequately implement said requirements and measures. commencing said processes; b) In the case of subprojects with acquisition processes entrusted to the SPBs: before signing the agreements with the corresponding SPBs. After the Subprojects have been approved, the environmental and social measures shall be implemented throughout the respective subprojects or other activities. 1.5 TECHNICAL ASSISTANCE Throughout Project implementation. MiAMBIENTE - PIU Ensure that consultancies, studies, capacity support activities, training and any other form of technical assistance implemented under the Project is conducted in accordance with terms of reference that are acceptable to the Bank, consistent with the ESSs and that include the relevant requirements on ESHS aspects. Thereafter ensure that the outputs of such activities comply with the terms of reference. ESS 2: LABOR AND WORKING CONDITIONS Page | 7 RESPONSIBLE MATERIAL MEASURES AND ACTIONS TIMEFRAME ENTITY/AUTHORITY 2.1 LABOR MANAGEMENT PROCEDURES The LMP shall be finalized no later than 30 days MiAMBIENTE - PIU Finalize, disclose, and adopt Labor Management Procedures (LMP) after the Project’s Effective Date. The draft LMP that identify risks and impacts associated with the Project, including a approved by the Bank shall be applied in a manner model code of conduct for the Project’s workers, in a manner acceptable to the Bank until the LMP is finalized. The acceptable to the Bank and consistent with ESS 2. LMP shall be implemented throughout the entire duration of the Project. 2.2 GRIEVANCE REDRESS MECHANISM FOR PROJECT WORKERS 1. No later than 30 days after the Project’s MiAMBIENTE - PIU Effective Date and maintain it throughout 1. Establish, maintain, and apply a grievance redress mechanism for all Project implementation. Project workers in a manner acceptable to the Bank. 2. Before starting the bidding process or before 2. Incorporate the requirements of the grievance redress mechanism signing subproject agreements with SPBs. for workers for contractors and subproject workers in the bidding documents and corresponding contracts, as well as the agreements signed with SPBs. 2.3 OCCUPATIONAL HEALTH AND SAFETY (OHS) MEASURES 1. Same timeframe as for Action 1.4.3. MiAMBIENTE - PIU 1. During the preparation of subprojects, identify the main occupational risks and hazards, as well as appropriate control measures in 2. Before starting bidding processes or before accordance with occupational safety standards in Panama and the signing subproject agreements with SPBs. LMP. 2. Bidding terms for the works implementation agreements must include the requirement for a work accident prevention plan in accordance with occupational health and safety standards in Panama, the ESSs and the ESMF/LMP. ESS 3: RESOURCES EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT Page | 8 RESPONSIBLE MATERIAL MEASURES AND ACTIONS TIMEFRAME ENTITY/AUTHORITY 3.1 WASTE MANAGEMENT The Project ESMF shall be finalized within the MiAMBIENTE - PIU Waste shall be managed in accordance with the Waste and Hazardous timeframe established for Action 1.4.1 Materials Management Guide contained in the annex A from the ESMF on agrochemicals or pesticides and veterinary medicines, as applicable Incorporate into the subproject design document to each subproject. The PIU shall coordinate and supervise the proper within the timeframe established for Action 1.4.3. implementation of the measures defined for each subproject. 3.2 PESTICIDE MANAGEMENT MiAMBIENTE - PIU Pesticide management shall be based on the Integrated Pesticide and Same timeframe as Action 1.4.3. Vector Management Plan (IPVMP) contained in the ESMF. ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 COMMUNITY HEALTH AND SAFETY MiAMBIENTE - PIU Prepare, adopt, and implement measures and actions to assess and Incorporate into the subproject design document manage specific risks and impacts to the community arising from Project within the timeframe established for Action 1.4.3. activities, including in relation to behavior of Project workers (including contractors and subcontractors), risks of labor influx and preparation and response to specific emergencies. Include these measures in subprojects. Implement measures and actions to guarantee that subprojects do not involve the construction of dams or reservoirs classified under the criteria of ESS4, Annex 1, para 2. Ensure that if subprojects involve the construction of publicly accessible buildings, the design and construction of said buildings include principles of universal access as per ESS4. Include gender violence and sexual abuse and exploitation prevention and response measures, proportionate to the risks of the Project, including the mapping of services for victims of gender violence, guidelines in the code of conduct for contractors and adequate treatment in the grievance redress mechanisms, as reflected in the SEP. Page | 9 RESPONSIBLE MATERIAL MEASURES AND ACTIONS TIMEFRAME ENTITY/AUTHORITY 4.2 RISKS OF GENDER VIOLENCE AND SEXUAL ABUSE AND EXPLOITATION The ESMF and the SEP shall be finalized no later than MiAMBIENTE - PIU 30 days after the Project’s Effective Date. Include in the ESMF and the SEP gender violence and sexual abuse and exploitation prevention and response measures, proportionate to the risks of the Project, including the mapping of services for victims of gender violence, guidelines in the code of conduct for contractors and adequate treatment in the grievance redress mechanisms. ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT 5.1 PROCESS FRAMEWORK 1. The PF shall be finalized no later than 30 days MiAMBIENTE - PIU after the Project’s Effective Date. The draft PF 1. Finalize, disclose, adopt, and implement the requirements of the approved by the Bank shall be applied in a Process Framework (PF) in subprojects or activities, where manner acceptable to the Bank until the PF is necessary as per the PF, in a manner acceptable to the Bank and finalized. The PF shall be implemented consistent with the requirements of ESS 5. throughout the entire duration of the Project. 2. Before beginning implementation of the 2. Include the requirements of the PF in subprojects or activities, subproject or activity involving a restriction of where necessary per the PF. access to natural resources in a protected area. ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES 6.1 BIODIVERSITY RISK AND IMPACT MANAGEMENT MiAMBIENTE - PIU Subprojects must meet the exclusion criteria and must not result in any Incorporate into the subproject design document type of deforestation. They must incorporate environmentally friendly within the timeframe established for Action 1.4.3. production alternatives (agroforestry, organic farming, etc.) to protect natural and critical habitats and promote biodiversity conservation in accordance with the ESMF and the POM, in a manner acceptable to the Bank. ESS 7: INDIGENOUS PEOPLES/ SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES Page | 10 RESPONSIBLE MATERIAL MEASURES AND ACTIONS TIMEFRAME ENTITY/AUTHORITY 7.1 INDIGENOUS PEOPLES PLANNING FRAMEWORK The IPPF shall be finalized no later than 30 days MiAMBIENTE - PIU after the Project’s Effective Date. The draft IPPF Finalize, adopt, disclose, and implement an Indigenous Peoples Planning approved by the Bank shall be applied in a manner Framework (IPPF), in a manner acceptable to the Bank and consistent acceptable to the Bank until the IPPF is finalized. with ESS 7. The IPPF shall be implemented throughout the entire duration of the Project. 7.2 INDIGENOUS PEOPLES PLANS IPPs shall be developed, finalized, and approved MiAMBIENTE - PIU within the timeframe established for Action Develop, consult, adopt, disclose, and implement Indigenous Peoples 1.4.3. Plans (IPP) where required for subprojects and other activities, consistent with the Indigenous Peoples Planning Framework (IPPF) prepared for the Project and ESS 7, in a manner acceptable to the Bank. Include the elements of an indigenous peoples plan in the overall design of subprojects in which indigenous peoples are the only or the majority of direct beneficiaries. ESS 8: CULTURAL HERITAGE 8.1 CULTURAL HERITAGE MANAGEMENT MiAMBIENTE - PIU Incorporate into the subproject design document a) Prepare and adopt the chance finds procedure in the ESMF. within the timeframe established for Action 1.4.3. b) Prepare, adopt, and implement the chance finds procedure in the subprojects, in accordance with the ESMF. The PIU shall coordinate and track preparation (depending on the complexity of the activities) and supervise adequate implementation. ESS 9: FINANCIAL INTERMEDIARIES This standard is not currently relevant. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE Page | 11 RESPONSIBLE MATERIAL MEASURES AND ACTIONS TIMEFRAME ENTITY/AUTHORITY 10.1 STAKEHOLDER ENGAGEMENT PLAN DEVELOPMENT AND The SEP shall be finalized no later than 30 days MiAMBIENTE - PIU IMPLEMENTATION after the Project’s Effective Date. The draft SEP approved by the Bank shall be applied in a manner Finalize, adopt, disclose, and implement the Stakeholder acceptable to the Bank until the SEP is finalized. Engagement Plan (SEP) in a manner acceptable to the Bank and The SEP shall be implemented throughout the consistent with ESS 10, which shall include measures to, inter duration of the Project. alia, provide stakeholders with timely, relevant, understandable and accessible information, and consult with them in a culturally appropriate manner, which is free of manipulation, interference, coercion, discrimination and intimidation. 10.2 PROJECT GRIEVANCE MECHANISM The Project’s Grievance Redress Mechanism shall MiAMBIENTE - PIU be available no later than 30 days after the Develop, adopt, maintain, and apply a grievance redress mechanism in a Project’s Effective date and function throughout manner acceptable to the Bank and consistent with the SEP, that Project implementation. incorporates the requirements on adaptation for indigenous peoples established in ESS 7. The grievance mechanism shall be equipped to receive, register, and facilitate the resolution of sexual exploitation and abuse, and sexual harassment complaints, including through the referral of survivors to relevant gender-based violence service providers, all in a safe, confidential, and survivor-centered manner. CAPACITY SUPPORT (TRAINING) FC1 TRAINING FORSPBs Ongoing training throughout Project MiAMBIENTE - PIU implementation. Training aimed at SPBs on the implementation of management measures for ESHS aspects included in the ESMF and the respective subproject ESMP and/or Management Guides. Page | 12 RESPONSIBLE MATERIAL MEASURES AND ACTIONS TIMEFRAME ENTITY/AUTHORITY FC2 TRAINING FOR PIU SPECIALISTS AND FIELD TECHNICIANS MiAMBIENTE - PIU, with the support of the Bank 1. Training aimed at PIU specialists (at the central and territorial 1. No later than three (3) months after the Project’s levels) on the Bank’s new ESS and Project instruments. Effective Date, and continuously throughout Project implementation, as applicable. 2. Training aimed at field technicians on the Project’s environmental and social instruments and the requirements 2. As necessary throughout Project implementation. applicable to subprojects. FC3 CONTRACTOR TRAINING Training shall be provided throughout the MiAMBIENTE - PIU subproject implementation period, as necessary. Training aimed at subproject contractors on occupational health and safety aspects, ESHS management, and workers’ code of conduct. Page | 13