INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA7290 Public Disclosure Copy Date ISDS Prepared/Updated: 01-Mar-2014 Date ISDS Approved/Disclosed: 04-Mar-2014 I. BASIC INFORMATION 1. Basic Project Data Country: Yemen, Republic of Project ID: P145361 Project Name: Corridor Highway Project (P145361) Task Team Andreas Schliessler Leader: Estimated 03-Mar-2014 Estimated 29-Apr-2014 Appraisal Date: Board Date: Managing Unit: MNSTI Lending Investment Project Financing Instrument: Sector(s): Rural and Inter-Urban Roads and Highways (100%) Theme(s): Infrastructure services for private sector development (50%), Regional integration (20%), Export development and competitiveness (20 %), Conflict prevention and post-conflict reconstruction (10%) Is this project processed under OP 8.50 (Emergency Recovery) or OP No 8.00 (Rapid Response to Crises and Emergencies)? Public Disclosure Copy Financing (In USD Million) Total Project Cost: 191.00 Total Bank Financing: 150.00 Financing Gap: 0.00 Financing Source Amount BORROWER/RECIPIENT 41.00 IDA Grant 150.00 Total 191.00 Environmental A - Full Assessment Category: Is this a No Repeater project? 2. Project Development Objective(s) The Project Development Objective is "Improved transport connectivity and safety on the targeted section of the transport corridor between Aden and Taiz". 3. Project Description Page 1 of 8 The Yemen Corridor Highway Project is expected to achieve the above mentioned objective though the implementation of two components: Public Disclosure Copy Component 1: Highway construction (US$ 150 million, of which US$ 128 million to be funded by IDA). This component will include mainly civil works for the construction of a sub-section of 55 km of a double carriageway highway between Aden and Noubat Dokaim. This sub-section will complement the 85 km sub-section to be built under a separate project with funding from the Saudi Fund for development which is considered to be an "associated facility". It will also include consulting services for the supervision of construction works for the same section, and technical audits to verify the quality of construction. Component 2: Institutional Support and Strengthening (US$ 22.0 million). This component will be comprised of several subcomponents: • Preparation activities for other sections of the Saada – Aden Yemen International Corridor Highway which are to be built through future projects, including: a) Preparation of Environmental and Social Safeguards studies (ESIA, EMP, RAP) for the following sections of the highway: (i) Taiz – Sana’a (Section 2); (ii) Sana’a - Amran (part of Section 3); (iii) Amran - Saudi Arabia Border. b) Update of existing design and feasibility studies for the section between Taiz and Sana’a (Section 2) and between Sana’a and Amran (part of Section 3). c) Corridor-level study for section between Amran and Saudi Arabia border, and later detailed design and feasibility study for that section. • Road safety. This will include a review of the existing design of the Aden – Taiz highway section with the specific purpose of detecting and remedying any potential deficiencies of the engineering design in terms of road safety. Public Disclosure Copy • Definition of asset management arrangements for the overall Saada-Aden Yemen International Corridor Highway (SAYICH). This subcomponent will include activities required for the establishment of mechanisms for the effective management and maintenance of the new corridor. Although the project will only cover the highway between Aden and Taiz, it will be necessary to establish suitable arrangements for managing and maintaining the entire future road corridor asset, which will eventually connect Aden in the South to the Saudi border in the North. This subcomponent will be developed with an eye to include small and medium-sized local firms as much as possible. • Communications campaign. This will include the design and execution of the MPWH’s information and communications campaign, for the purposes of building public and stakeholder support for the International Corridor Highway Program. • Training and capacity building. This subcomponent will also include resources to fund various types of training and capacity building for staff of MPWH, apart from the resources for road safety training and asset management described above. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The wider Saada – Aden Yemen International Corridor Highway (SAYICH) Program will include three main sections: Page 2 of 8 • Section 1: Aden – Lahj – Taiz (140 km) • Section 2: Taiz – Ibb – Dhamar – Sana’a (214 km) Public Disclosure Copy • Section 3: Sana’a – Amran – Saada (Albain border) (358 km) At this time, the Government has only secured funding (by the Saudi Fund for Development) for a 85 km subsection of Section 1, between Taiz and Noubat Dokaim. The proposed IDA-funded project would cover the remaining part of Section 1, namely the southernmost 55 km between Aden and Noubat Dokaim. Section 1 of the SAYICH is considered a viable stand-alone project. The SDF- funded sub-section is considered an "associated facility" to the sub-section to be funded by the project. Section 1 is located in three governorates (Aden, Lahj and Taiz). For Section 1, the necessary land acquisition and resettlement is concentrated in several pockets along the planned highway, mostly along the SFD-funded sub-section where about 90% of the project-affected people live. The sub-section to be funded under the proposed IDA-funded project has relatively little sensitive land acquisition since it includes long stretches in desert areas without any productive activities. The terrain is mostly flat or slightly rolling between the coastal town of Aden and Noubat Dokaim. Further north towards Taiz it becomes more hilly and mountainous. Very few watercourses of significance traverse the project area. The road is designed as a long-distance highway with specifically designed access and exit points. Several possible alignments for the new highway were analyzed and compared. The choice of the alignment was made based on several criteria, including minimizing environmental and social impacts, such as keeping the alignment away from settlements as much as possible and reducing the need for acquiring productive land. Nevertheless, some settlements along the alignment may need shielding from the effects of fast traffic on the new highway. The chosen alignment is not anywhere near protected areas. 5. Environmental and Social Safeguards Specialists Public Disclosure Copy Nina Bhatt (MNSSU) Chaogang Wang (MNSSU) Gaurav D. Joshi (SASDI) Africa Eshogba Olojoba (MNSEE) 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes Policy will be triggered. Environmental and BP 4.01 Social Assessment and Environmental and Social Management Plan (ESMP) will be prepared. Natural Habitats OP/BP 4.04 No Policy is not triggered as per ESIA. Forests OP/BP 4.36 No Policy does not apply as the project will not be implemented in any forested areas. Pest Management OP 4.09 No Policy is not triggered as the project will not procure any pesticides nor will it induce an increase in the current non-existent to low levels of pesticide use. Page 3 of 8 Physical Cultural Resources OP/ Yes Policy will be triggered due to the possibility of BP 4.11 chance finds of cultural or historic resources during the construction of the new highway, and Public Disclosure Copy also because cultural resources (mosques, graves) are affected by the construction activities. Indigenous Peoples OP/BP 4.10 No Policy is not triggered as indigenous people as defined in the policy are not present in project areas. Involuntary Resettlement OP/BP Yes Land acquisition and resettlement impacts will 4.12 not be avoidable. A Resettlement Action Plan will be prepared. Safety of Dams OP/BP 4.37 No Policy is not triggered as the project will not include construction of dams as defined by the policy. Projects on International No Policy is not triggered as the project will not Waterways OP/BP 7.50 undertake any activities in the catchment areas of international waterways and shared aquifers. Projects in Disputed Areas OP/BP No Policy is not triggered as project activities will 7.60 not be implemented in any disputed areas. II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: Due to the nature of the project as construction of a new highway (as opposed to upgrading of an existing highway), the project may have significant environmental and social impacts which need Public Disclosure Copy to be managed and mitigated. The proposed project is therefore considered a “Category A” project, meaning that it is “likely to have significant adverse environmental and social impacts that are sensitive, diverse, or unprecedented”. Environmental impacts: The potential negative impacts of the road construction activities include (i) removal of vegetation, (ii) air pollution from emission of gases, dust and noise from construction plants and vehicles, (iii) risk of safety for residents, (iv) risk of damage to cultural properties of local importance which could be near the alignment, (v) changes to local drainage near water courses or borrow areas, in cases where watercourses are encountered, (vi) water pollution close to water courses, (vii) unsafe conditions for workers as well as (viii) stress on local population and resources due to temporary influx of large population of workers. During operation phase, increased air pollution from vehicle movement and hazard due to road accidents are possible. To a lesser degree, increased severance of populations on either side of the new highway may occur. The potential environmental impacts have been addressed through the ESMP. Social impacts: The key adverse social impacts of the project are largely related to land acquisition and resettlement. An Environmental and Social Impact Assessment (ESIA) has been prepared not only Page 4 of 8 for the IDA-funded road sections between Aden and Noubat Dokaim, but also for the adjacent section between Noubat Dokaim and Taiz which is funded by the Saudi Fund for Development under a different project. The ESIA shows that the impacts due to land acquisition and Public Disclosure Copy resettlement are spread among three Governorates (Aden, Lahj, and Taiz) and affect 5 districts and 74 villages or small settlements. According to census survey results, a total of 2,685 households are likely to be affected by land acquisition. Due to the large average household size, a total of 31,695 persons will be affected. These households earn their livelihood primarily through agriculture, Qat cultivation, wage labor and through small businesses. A total of 1,224.8 hectares of land is to be acquired permanently for the project. Land acquisition will be most important in Lahj Governorate (909.6 ha.), significant in Taiz Governorate (277.9 ha.), and relatively minor in Aden Governorate (37.3 ha). The impact of land acquisition on livelihoods is likely to be significant in many cases. Of the 2,159 individual plots involved in land acquisition, 1,318 are to be acquired in their entirety (100%) while the remaining 841 plots are to be acquired in part. Of a total of 1,329 agricultural plots affected, 721 will be acquired in their entirety. While this impact is significant, it is offset in part by the pattern of multiple landholdings by households that is prevalent in the project area. In addition to land acquisition, YCHP will require substantial demolition of structures and relocation of residents. In all, 170 households (or 2,789 people) will be required to relocate. Among the governorates, Taiz will require the greatest relocation (2,546 people), compared to 233 in Lahj and 10 people in Aden. The likely negative social impacts have been addressed through the ESMP and the RAP. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: Long-term impacts are mostly linked to the increased emissions of pollutants to the air environment. This is due to the additional traffic generated by the new road. The increase in pullutant load by the year 2040 for both sections is as follows: Vehicle traffic levels in the “with project” scenario are about 1.59 times higher than in the “without project” scenario. The increases in pollutants are as follows: HC – 2.21 times, CO – 2.53 times, NOx – 2.15 times, SO2 - 2.13 Public Disclosure Copy times, CO2 – 2.13 times, Particulate Matter – 2.13 times, Lead – 2.19 times higher. Despite the significant increases, the overall dispersed pollution levels are still deemed to be at non-critical levels, which is partly due to the near-absence of other sources of pollution in most of the project area. The project will generate a number of important socioeconomic benefits: Despite the depressed business activities in Aden during the recent years, the city of Aden is nevertheless relatively prosperous compared to many other areas of Yemen. The highway section between Aden and Taiz which is to be built under the proposed project would expand the relatively prosperous Aden’s market into hinterland areas and improve access to supply chains for Lahj and Taiz Governarates which are marked by far deeper poverty. The project is expected to promote shared prosperity in the following ways: • In the short term, the construction itself of the road would bring important short-term benefits through job opportunities for thousands of workers, unskilled and skilled, including those who have been repatriated from Saudi Arabia and Gulf states in the recent past. First, during the construction period a large number of skilled and unskilled workers will be employed by private contractors, resulting in important income generation (about 1.28 million person-days of unskilled work alone during the 3 to 4 years of project execution, at a rate of about US$ 18 per day). Unskilled workers, which in economic terms are part of the bottom 40% of the population, will typically be recruited from the area of the physical works, resulting in direct income generation for Page 5 of 8 this group in the area of the road. Second, the construction would also bring large-scale business opportunities for many Yemeni firms who will be involved in the construction activities, as contractors, sub-contractors and as suppliers of goods and services. It is these direct short-term Public Disclosure Copy benefits that are of specific importance in the context of the ongoing political consolidation and unification process. • In the medium and long term, the new Saada-Aden Yemen International Highway (SAYICH) Program, of which the Corridor Highway Project is the first part, is expected to bring trade facilitation and general economic revitalization, by lowering transportation costs and travel times, reducing overall trade costs, and by bringing access to international markets through Aden deeper into the country. The highway will also provide better access by rural populations to markets and services located in the larger cities along the new highway (Aden, Lahj and Taiz). Most social services, such as general healthcare, emergency medical services, education, etc. are located in the cities and the new highway will provide faster and easier access to those. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. The alignment of the planned highway was chosen using several different criteria, among which were to minimize negative environmental and social impacts, such as avoid proximity to human settlements as much as possible. This has been largely achieved along the IDA-funded section between Aden and Noubat Dokaim where the volume of needed resettlement is low. On the SFD- funded section between Noubat Dokaim and Taiz significant resettlement will be necessary, especially in the area close to Taiz. There are no legally protected areas for flora or fauna along the alignment or even near the alignment. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The Client has agreed to apply Bank safeguards policies to the entire new highway between Aden and Taiz. An Environmental and Social Impact Assessment (ESIA), an Environmental and Social Management Plan (ESMP) and a Resettlement Action Plan (RAP) have been prepared and integrated with the project documents, including the civil works contracts. The ESMP requires the Public Disclosure Copy implementation of measures by the MPWH as well as by the civil works contractor. The supervision consultant will monitor the implementation of the ESMP and report regularly on progress to the MPWH. The implementation of the ESMP will be the responsibility of PIU the MPWH. It is recruiting a full-time environmental/social specialist to assist the Project Director on all environmental aspects. The environmental/social specialist will interface with the Bank, the road works supervision consultant and with the road contractors, as well as with other stakeholders such as the Yemen EPA, to ensure that all ESMP measures are implemented. The environmental coordinator will be the key liaison with the Bank and with other stakeholder departments of the GoY, for implementing the management measures that are to be implemented directly by the MPWH, as opposed to those that are to be implemented through the contractor for works. A written agreement between MPWH and the Yemen Environmental Protection Agency (EPA) has also been reached which defines the roles and responsibilities of each party and describes the third party monitoring and evaluation to ensure the effectiveness of the measures for environmental management. The PIU will also be responsible for implementing the Resettlement Action Plan. An external independent monitoring agency will also be used to verify the full implementation of the ESMP and the RAP. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Page 6 of 8 Extensive consultations have been carried out with a wide range of stakeholders during the project preparation stage. These have included consultations with local residents (male and female) in the project area where the draft ESIA and ESMP were discussed. MPWH also plans to continue Public Disclosure Copy consultations and outreach in the project area during the project implementation stage. In addition, a Grievance Redress Mechanism (GRM) for environmental and social impacts will also be implemented. As part of project preparation, discussions with the Yemen EPA have been held and their views have been obtained on the ESIA and ESMP. A Memorandum of Understanding is expected to be signed between the MPWH and Yemen EPA to clarify the role of each party and to ensure the adequate implementation of the ESMP measures. B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 11-Feb-2014 Date of submission to InfoShop 28-Feb-2014 For category A projects, date of distributing the Executive 28-Feb-2014 Summary of the EA to the Executive Directors "In country" Disclosure Yemen, Republic of 28-Feb-2014 Comments: The draft ESIA and ESMP were disclosed in Yemen as follows: (i) on the website of the Ministry of Public Works and Highways, (ii) in printed version in the Headquarters of the MPWH in Sana'a and in the MPWH branch offices in Taiz and Aden. Newspaper advertisements were published in local papers informing the public about the availability of the draft ESIA and ESMP on the MPWH website and in the MPWH offices indicated above. Resettlement Action Plan/Framework/Policy Process Public Disclosure Copy Date of receipt by the Bank 11-Feb-2014 Date of submission to InfoShop 28-Feb-2014 "In country" Disclosure Yemen, Republic of 28-Feb-2014 Comments: The draft RAP was disclosed in Yemen as follows: (i) on the website of the Ministry of Public Works and Highways, (ii) in printed version in the Headquarters of the MPWH in Sana'a and in the MPWH branch offices in Taiz and Aden. Newspaper advertisements were published in local papers informing the public about the availability of the draft RAP on the MPWH website and in the MPWH offices indicated above. If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/ Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: C. Compliance Monitoring Indicators at the Corporate Level OP/BP/GP 4.01 - Environment Assessment Page 7 of 8 Does the project require a stand-alone EA (including EMP) Yes [ ] No [ ] NA [ ] report? Public Disclosure Copy If yes, then did the Regional Environment Unit or Sector Yes [ ] No [ ] NA [ ] Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated Yes [ ] No [ ] NA [ ] in the credit/loan? OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural Yes [ ] No [ ] NA [ ] property? Does the credit/loan incorporate mechanisms to mitigate the Yes [ ] No [ ] NA [ ] potential adverse impacts on cultural property? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/ Yes [ ] No [ ] NA [ ] process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Yes [ ] No [ ] NA [ ] Sector Manager review the plan? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the Yes [ ] No [ ] NA [ ] World Bank's Infoshop? Have relevant documents been disclosed in-country in a public Yes [ ] No [ ] NA [ ] place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional Yes [ ] No [ ] NA [ ] Public Disclosure Copy responsibilities been prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included Yes [ ] No [ ] NA [ ] in the project cost? Does the Monitoring and Evaluation system of the project Yes [ ] No [ ] NA [ ] include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed Yes [ ] No [ ] NA [ ] with the borrower and the same been adequately reflected in the project legal documents? III. APPROVALS Task Team Leader: Name: Andreas Schliessler Approved By Regional Safeguards Name: Nina Chee (RSA) Date: 04-Mar-2014 Advisor: Sector Manager: Name: Patricia Veevers-Carter (SM) Date: 04-Mar-2014 Page 8 of 8