Page 1 INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC328 Date ISDS Prepared/Updated: December 2, 2003 I. BASIC INFORMATION A. Basic Project Data Country: Lao People's Democratic Republic Project ID: P075780 Project Name: Lao Provincial and Rural Infrastructure Task Team Leader: Maria Margarita Nunez Estimated Appraisal Date: September 7, 2004 Loan/Credit amount ($m.): IDA: 22 Estimated Board Date: December 7, 2004 Managing Unit: EASTR Lending Instrument: Specific Investment Loan (SIL) Sector: Roads and highways (75%);Water supply (25%) Theme: Rural services and infrastructure (P);Decentralization (S);Civic engagement, participation and community driven development (S);Small and medium enterprise support (S);Rural markets (S) Safeguard Policies Specialists in the task team: Anil Somani, Svend Jensby Other financing amounts by source: Government of Lao PDR ($m.) 2 B. Project Objective The development objective of PRIP is to assist the Government of Lao PDR achieve its goal of sustainable economic growth and social development. It will do so by improving access to basic infrastructure services, to income generating activities, and to institutional capacity at the central provincial and district levels in both the Government and private sector. The Social Assessment (SA) will facilitate consultations with potential beneficiaries and other stakeholders, particularly ethnic minorities, regarding potential project impacts and appropriate design features. Social safeguards documents will be disclosed prior to appraisal and input from various stakeholders will be sought. C. Project Description The Government proposed four provinces as being particularly isolated and/or with a low economic development level. These provinces were Houaphan and Xayabouri in the North and Sekong and Attapeu in the South. Based on an initial screening utilizing a multi-criteria assessment that included: level of poverty; accessibility to transport and water and sanitation services; and the existing interventions supported by donor and non-governmental/civil society agencies that complement those of the PRIP. The Bank confirmed that Houaphan, Xekong, Oudomxay and Phongsaly provinces were suitable for support under PRIP. In Houaphan and Xekong provinces, PRIP will finance infrastructure improvement and institutional strengthening and capacity building at the provincial, district and village levels. It will also support the development of micro-enterprises for roads maintenance and small towns’ water supply. In addition, for Oudomxay and Phongsaly provinces, PRIP would provide sustainable water supply and Page 2 sanitation and promote hygiene awareness in the rural areas and selected small towns. The task team visited these provinces and a preliminary list of candidate roads, and small towns and districts for WSS, were identified. The project design is based closely on the current Provincial Infrastructure Project (PIP). Component 1. Upgrading and rehabilitation of roads. (US$16.5 million) This component will improve overall transport connectivity by: (a) providing all weather road access to provincial and district capitals; and (b) rehabilitating rural roads, footpaths and footbridges, local waterways landing facilities and approach roads. The candidate roads are Hanglon Junction – Sopbao - Xiengko – Et - Dan in Houaphan Province and Phon - Kalum in Sekong Province. Component 2. Small Towns and RWSS . (US$5.5 million) This component will: (a) facilitate small towns WSS through private sector participation; and (b) provide sustainable water supply and sanitation and promote hygiene awareness, through community participation and the formation of user groups to manage and maintain the improved facilities in the rural areas of about seven districts. The candidate urban centers are Xamtai, Viengthong, Huameuang, Sopbao and Xiengkho, in Houaphan; and Thateng and Dakcheung in Sekong. These districts are all within the Government’s top 47 priority poor districts as identified in the NPEP. Component 3. Capacity Building of the public and private sectors. (US$1.5 million) This component will support the ongoing decentralization efforts in Ministry of Communication, Transport, Post and Construction (MCTPC) and capacity building at the provincial and district levels. It will aim to: (a) improve the planning and operational ability of the managerial, technical and administrative structures of the provincial level, as well as selected agencies at the national level; and (b) develop local level enterprises for community road maintenance, and small town and RWSS. Component 4. Public awareness and outreach. (US$0.5 million) This component will support a community awareness program aimed at increased awareness of the transport agencies and beneficiaries of road safety, HIV/AIDS, participation in the selection of roads and WSS, and public information dissemination. D. Project location Houaphan, Xekong, Oudomxay and Phongsaly provinces have been selected for support under PRIP. In Houaphan and Xekong provinces, PRIP will finance infrastructure improvement and institutional strengthening and capacity building at the provincial, district and village levels. It will also support the development of micro-enterprises for roads maintenance and small towns’ water supply. In addition, for Oudomxay and Phongsaly provinces, PRIP would provide sustainable water supply and sanitation and promote hygiene awareness in small towns and rural areas. E. Borrower’s Institutional Capacity Delays in authorization and implementation of project activities, including, feasibility and final design reports, adherence to procurement procedures, materialization of commitments, contract signature and timely preparation of financial management reports are examples of institutional capacity issues which may pose constraints. This could lead to slow progress and bottlenecks. To overcome the provincial and district authorities’ capacity limitations, the provinces will be fully and actively involved in all stages of the project, from preparation to implementation; and technical assistance, designed after an assessment of the current capacity, will be addressed by the project. Page 3 The capacity, and resources, to undertake safeguard related work will require strengthening in MCTPC, as well as in Science, Technology and Environment Agency (STEA), particularly concerning the social safeguard issues for involuntary resettlement and ethnic minorities. Social and Environment Division (SED) was established in October 2001 and has 9 staff – 5 for roads projects and 4 for the waterways unit. Technical staff are all engineers with only one having received formal training in Environmental Assessment. There is some uncertainty about the role and responsibilities of SED regarding safeguard aspects of the various donor supported projects, as well as national or private funded projects. Coordination with the Project Monitoring Division and communication with Provincial and District staff also requires strengthening. For effective implementation of safeguard provisions for PRIP, the Social Assessment (SA) and other project preparation activities will assess in more detail the institutional capacity and constraints of SED, Provincial and District agencies and staff responsible for safeguard implementation and propose measures to strengthen their capacity. II. SAFEGUARD POLICIES THAT MIGHT APPLY Applicable? Safeguard Policy If Applicable, How Might It Apply? [X] Environmental Assessment ( OP / BP 4.01) [ TBD] Natural Habitats ( OP / BP 4.04) [ ] Pest Management ( OP 4.09 ) [X] Involuntary Resettlement ( OP / BP 4.12) [X] Indigenous Peoples ( OD 4.20 ) [ ] Forests ( OP / BP 4.36) [ ] Safety of Dams ( OP / BP 4.37) [TBD] Cultural Property (draft OP 4.11 - OPN 11.03 ) [ ] Projects in Disputed Areas ( OP / BP / GP 7.60) * [ ] Projects on International Waterways ( OP / BP / GP 7.50) Environmental Assessment Category: [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) Safeguard Policies Classification: [ ] S 1 [X] S 2 [ ] S 3 [ ] S F [ ] TBD (to be determined) III. ACTIONS DURING PROJECT PREPARATION A. What actions might be needed during project preparation to assess safeguard issues and prepare to mitigate them? * By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas Page 4 Preparation will include a review of the implementation of the Environmental Guidelines and the Resettlement Policy Framework for Road Maintenance Project (RMP) and Provincial Infrastructure Project (PIP). This review will include an assessment of the type and level of environmental and social impacts of RMP and PIP activities. The guidelines and framework for RMP and PIP will be used to develop guidelines for PRIP and the EA and SA work will propose measures, as needed, to strengthen the capacity of MCTPC (SED) and Provincial staff to implement the safeguard provisions and improve environmental and social outcome. This exercise could be undertaken by the consultants to be contracted for the EA and SA for PRIP or by SED/MCTPC itself with the assistance of the World Bank. B. How might consultation and disclosure requirements be addressed? The proposed project will require at least an Initial Environmental Examination (IEE) and an Environmental Management Plan (EMP) for submission to MCTPC and STEA, who after consultation and review of the IEE/EMP reports may clear the reports or require a more detailed EIA/EMP. Accordingly, public consultation is required during the screening of project environment, the preparation of IEE, EIA including its project planning and operation. IV. AGREEMENTS REACHED ON SAFEGUARDS AT PCN REVIEW The project team confirmed that the project will not affect ecologically sensitive areas, environmental impacts would be minor and the roads would be improved within the existing alignment. The meeting noted that some impact has been identified because of the on-going logging activities that are evident from the log storage patios along one of the roads visited by the team and that there is potential for involuntary resettlement because of limited land acquisition for road widening. The meeting asked the project team to look very closely at the safeguard issues with respect to environment, involuntary resettlement and ethnic minorities - in addition to the "standard" social issues of vulnerability (indigenous people and gender) the project team was asked to remains alert during project preparation in relation to concerns for relocation and village consolidation. Agreed target date for Quality Enhancement Review: TBD Page 5 wb213157 N:\LAO PDR\PRIP\Environment\Integrated Safeguards Data Sheet - v2.doc December 2, 2003 5:00 PM