The World Bank Lao PDR Priority Skills for Growth (P172774) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) For Official Use Only Date Prepared/Updated: 08/30/2021 | Report No: ESRSC02256 Aug 31, 2021 Page 1 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Lao People's Democratic EAST ASIA AND PACIFIC P172774 Republic Project Name Lao PDR Priority Skills for Growth Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Education Investment Project 12/1/2021 2/28/2022 Financing Borrower(s) Implementing Agency(ies) Ministry of Finance Ministry of Education and Sports, Ministry of Labor and Social Welfare For Official Use Only Proposed Development Objective To increase and improve the acquisition of market-relevant skills and enable successful transition to jobs in priority sectors in Lao PDR, and in case of an Eligible Crisis or Emergency, respond promptly and effectively to it. Financing (in USD Million) Amount Total Project Cost 30.00 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 proposed project will focus on two key areas. First, it will aim to improve skills training in Lao PDR, such that it is relevant in today's context and flexible to adapt to changes in the labor market. It will do this by focusing on generic labor market-relevant topic areas (such as entrepreneurship training and macro digital literacy); introducing new methods (virtual reality); incorporate socio-emotional learning; and ensure quality assurance by strengthening transparency and accreditation. Second, it will help with the successful transition of graduates to the labor market. It Aug 31, 2021 Page 2 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) will do this by ensuring better systems for job search assistance; better labor market information systems; and active labor market programs. Cross-cutting themes include ensuring migrants receive training and support to enter the workforce; stronger links with the private sector; and ensuring interventions are green, resilient and inclusive. The project will focus on the following components: Component 1: Improve the quality and relevance of pre-employment skills training programs (US$ 10 million): This objective of this component is to strengthen access to labor-market relevant training in the following areas: (1) sector-specific skills in 1-2 core economic sectors, such as logistics; (2) digital skills (focus on government employees); and (3) English language skills. The first will contribute directly to economic growth and competitiveness in Lao PDR. The second will lay the foundation for more efficient administration in all sectors, while providing trainees the opportunity to move between jobs. The third will help further facilitate job mobility as well as open up newer markets to trainees. Where relevant, emerging pedagogic methods, such as virtual reality, will be incorporated. Component 1 will include two subcomponents, the first focusing on engaging with select Technical Vocational Education and Training (TVET) institutes or centers (selected based on a comprehensive assessment (Training Assessment Project) of institutes in Lao PDR) and the second on system level reform. Subcomponent 1 will focus on: (1) strengthening digital and English skills, and implementing the revamped curricula in the selected core sector(s); (2) improving teaching quality; (3) upgrading equipment and learning facilities (no new construction); (4) better career counselling; (5) management training; (6) strengthening links with the private sector; and (7) tracking graduates into For Official Use Only employment. Subcomponent 2 will focus on system-level reforms, including: (1) quality assurance as undertaken by the Department of Legislation and Education Quality Assurance; (2) better transparency of data (disaggregated enrollments by courses, graduate employment, and so forth); (3) modernizing the curricula in the selected sector; and (4) designing a core digital curriculum for all government workers and implementing it in key sectors. Component 2: Enhancing job matching and youth’s employability (US$ 10 million): The objective of this component will be to (i) improve job centers’ capacity to do counseling and outreach to the private sector, (ii) strengthen the labor market information system, and (iii) develop a wage subsidy program that supports young people’s entry into the workforce. Component 2 will finance two sub-components. The first sub-component (Strengthening job centers) will focus on strengthening the capacity of job centers to deliver their services, more specifically: strengthening job brokerage and other key functions of the job centers (counseling, and outreach to the private sector); and improving the labor market information system (LMIS) functionalities. The se cond sub-component will support on-the-job training by piloting a mechanism to support the development of a wage subsidy program for youth. Agreements will be reached with firms in priority sectors for financing half of the salaries for job seekers. The wage subsidy program could be scaled based on performance and resources. Component 3: Skills Fund to enhance effective skills training (US$ 5 million): The objective of this component will be to create a skills fund to finance the skilling of labor market entrants and workers in the informal sector (entrepreneurship training, basic digital skills, financial literacy and so forth). The Skills Fund will bring together the TVET Development Fund envisaged under MoES and the Skills Fund envisaged under MoLSW. The fund’s primary objective will be Combining the two funds will require considerable coordination and Aug 31, 2021 Page 3 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) collaboration between the ministries, but will help reduce duplication, while raising additional resources and increasing efficiency in the use of public funds earmarked for skills development. Component 4: Better governance of the skilling sector and project management, monitoring and evaluation support (US$ 5 million): This objective of this component is to strengthen the overall capacity and effectiveness of the skills and employability sector in Lao PDR. It will work through two subcomponents: (1) Better governance for effective skilling and job placement; and (2) Project management. The first subcomponent will include improving coordination across Ministries and the private sector engaged in skilling; and improve the effectiveness of the NTSDC and Trade Working Groups. The second subcomponent will finance the operation (including equipment, software and so forth) of departments in the respective ministries engaged in project management, as well as all monitoring and evaluation related to the project. The project will be jointly implemented by the Ministry of Education and Sports (MoES) through its Department of Planning and the Department of Skills Development and Employment and the Department of Planning with focused implementation units to be established under each of these ministries. The World Bank has worked closely with MoES in previous projects, which has proven to be a highly engaged and competent partner. They have a strong understanding of World Bank operational procedures, including fiduciary and safeguards. For the MoLSW this would be the first project with the World Bank. However, the Ministry has been working with various donors financed projects for labor and skill development including ADB, ILO, UN agencies, GIZ, LuxDev, JICA, KOICA. The Department of For Official Use Only Skills Development and Employment would oversee the overall implementation of Component 2, while for Component 4 it would be done jointly with the Department of Planning, MoES. The day-to-day implementation of Component 2 will be the responsibility of an assigned project implementation unit. MoES will take the lead, given its experience in working with the World Bank. Strong coordination between the different departments, between DPs, and between the different departments and DPs will be crucial for the project to implement successfully. About 15 TVET centers will be chosen based on the ongoing Training Assessment Project evaluation such that they have: (1) pro-active leadership and teachers; (2) show promise for adopting new methods; (3) have existing systems for employer participation; and (4) cater to students from all socio-ethnic categories. Criteria will be determined during preparation for selection of job centers. At least one institute will be chosen from each province/ catering to a province. 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 aims to strengthen the acquisition of market-relevant skills in selected sectors in Lao PDR and facilitate successful transition to jobs. It will be implemented nationwide where job seekers and trainees are seeking for relevant skill development and employment opportunities. Under Component 1: Improve the quality and relevance of pre-employment skills training programs, the project will support about 15 Technical and Vocational Education and Training (TVET) centers which are currently being selected Aug 31, 2021 Page 4 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) through the comprehensive assessment to strengthen and implement revamped curricula in the selected core sectors, improve teaching quality and upgrade training and learning equipment and facilities attached to these TVET centers. The centers are located in Vientiane Capital City (VCC) and other provincial towns across the country, where vulnerable and ethnic people and communities are present and are expected to involve and benefit from the project. Works to upgrade learning facilities will be limited to expansion and renovation of existing learning facilities attached to TVET centers. No construction of new facilities will be financed by the project. Given that all these TVET centers are located within the existing state land and premises of the MoLSW and MoES responsible for project implementation, no land acquisition and resettlement is anticipated for the project. These land parcels and premises are free of any encumbrances. However, OHS, CHS, resources use, pollution prevention and management are risks that need to be considered. Component 1 will also finance modernization of the curricula in the selected sector where integrating specific knowledge on environmental related aspects is recommended, particularly on issue related to reduction and control of pollution, protecting human health, efficient use of water, electricity, and raw materials as well as waste management. Component 2: Enhancing job matching and youth’s employability will focus on strengthening the capacity of job centers to deliver their services, more specifically: strengthening job brokerage and other key functions of the job centers (counseling, and outreach to the private sector); and improving the labor market information system (LMIS) functionalities. This component will also support on-the-job training by piloting a mechanism to support the development of a wage subsidy program for youth. Agreements will be reached with firms in about 5 priority sectors for financing half of the salaries for job seekers. The wage subsidy program could be scaled based on performance and For Official Use Only resources. There is a potential risk of unequal access and discrimination against vulnerable and ethnic job seekers and employees and risk of excluding them from the project benefits. These risks can be mitigated if inclusive and transparent processes and criteria for targeting and facilitating the beneficiaries are in place. Component 3: Skills Fund to sustain effective skills training (US$ 5 million) will focus on creating a skills fund that brings together the TVET Development Fund envisaged under MoES and the Skills Fund envisaged under MoLSW. The Skill Fund will be used to finance the skilling of labor market entrants and workers in the informal sector (entrepreneurship training, basic digital skills, financial literacy and so forth). Similarly, this could potentially generate risks of discrimination and inequitable access to the Skills-fund, if not well managed. An initial estimated 20,000 graduates and job seekers of whom 8,000 are female from all 18 provinces in Laos and some selected TVET centers located in various provinces are expected to benefit from the project. These target beneficiaries will include those of vulnerable and ethnic people from local communities within those provinces where TVET centers are located and from neighboring provinces as well as labors migrated from neighboring countries due to the COVID-19 impacts. D. 2. Borrower’s Institutional Capacity The proposed project will be jointly executed by the Ministry of Education and Sports (MoES) and Ministry of Labor and Social Welfare (MoLSW). The Department of Planning (DoP) in MoES and the Department of Skills Development and Employment (DoSE) and the DoP in MoLSW will be responsible for project implementation through focused implementation units, the Education Coordination Unit (ECU) for MoES and an assigned project implementation unit for MoLSW. Both of which have been highly engaged and competent partners. The World Bank has worked closely Aug 31, 2021 Page 5 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) with MoES and ECU in previous education projects, including an ongoing “Global Partnership for Education (GPE)III Learning Equity Acceleration� Project (P173407) to which the ESF applies. However, their ESF implementation capacity will need further improvement. For this project, the ECU will have to coordinate closely with the TVET Department and Department of Legislation and Education Quality Assurance (DLEQA). In the previous projects, the ability of other departments to devote adequate time has depended on: (1) adequate staffing; and (2) multiple demands on their time by their internal ministries and other projects and Development Partners (DPs). In short, strong coordination between the different departments, between DPs, and between the different departments and DPs will be crucial for the project to be implemented successfully. That said, ECU is currently short-staffed, and will need to be properly staffed to have adequate capacity to implement the proposed project well. For the MoLSW this would be the first project with the World Bank. Thus, the ministry is not familiar with the World Bank’s ESF. However, the Ministry has been working with various donors financed projects for labor and skill development including ADB, ILO, UN agencies, GIZ, LuxDev, JICA, KOICA. The Department of Skills Development and Employment (DoSE) would oversee the overall implementation of sub-component 2, while for sub-component 4 it would be done jointly with the Department of Planning (DoP). The day-to-day implementation of component 2 will be the responsibility of an assigned project implementation unit. Thus, substantial support and resources would be required to develop capacity of these implementing agencies (IAs) particularly for the MoLSW to prepare and apply ESF instruments to manage potential risks and impacts anticipated from the project activities. Given the comprehensiveness and complexity of the new ESF, a capacity building plan for the IAs will be developed prior to the project effectiveness. A team of qualified ES consultants would be required to support and build in-house capacity of For Official Use Only the MoES and MoLSW in ESF preparation, implementation, monitoring and reporting. A robust implementation and coordination arrangement among IAs and partnered agencies will be further discussed and firmed up at appraisal stage to ensure that ESF/ESSs requirements and instruments will be effectively implemented and complied by the project. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate Environmental Risk Rating Moderate There will be no new construction supported under the project, however, under the component 1 will finance rehabilitation and/or renovation of training facility (laboratory) within existing buildings. Under the same component 1, the project will finance development and or upgrading the curriculum of selected sector, improve teaching quality, and provide training and learning equipment required for TVET centers in Vientiane Capital and provinces. Key environmental risks and impacts could be generated from renovation civil work conducted in existing buildings which may be related to safety of workers, teachers, students, parents, and general public as well as local communities who maybe working and living near the project site. Potential increase in traffic, noise, vibration, dust and other air pollution, generation of construction wastes, and water pollution during construction and operation of facilities. These risks and impacts will be limited, localized, site specific, mostly temporary, and can be mitigated through the application of environment and social code of practices (ESCOP), close supervision and monitoring of Aug 31, 2021 Page 6 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) contractors, and ensuring effective traffic management, and consultation with students, teachers, and local communities during preparation and renovation of facilities. GOL local regulations will also have to be observed during construction and operations of these faculties, particularly those related to waste management and disposal of toxic and/or hazardous materials (such as chemicals, fuels, used oil, etc.) that are used during the training in laboratory. As part of curriculum improvement to enhance technical capacity for teachers and students, it is an opportunity to promote environmental management knowledge, particularly on waste management and environmental conservation which could help to increase the knowledge and skills of those working for different types of factories, construction companies, and/or other development projects such as hydropower, mining, construction, industries by integrating specific knowledge on efficient use of water, electricity, and raw materials as well as on waste management and pollution control into the training program and curriculum. These trainings on specific skills or subject can be included during the detail design of training program to be supported under project Components 1. Social Risk Rating Moderate Based on the up to date information on the nature and scale of the project available, social risk under the project is considered to be Moderate. The project is expected to bring about significant social and economic benefits and positive skill development outcomes to the target beneficiaries and the country in many ways. The first will contribute directly to economic growth and competitiveness in Lao PDR. The second will lay the foundation for more efficient administration in all sectors, while providing trainees with the opportunity to access to labor markets and move between jobs. The third will help further facilitate job mobility as well as open up newer markets to trainees. Specifically, Lao workers and job seekers who have been affected by mechanization and the COVID-19 outbreak are For Official Use Only among the main target groups of project beneficiaries to receive the project support. An initial estimate number of 20,000 people including 8,000 women will benefit from the project. Land acquisition and resettlement are not envisaged under the project given that all works to be financed through Component 1 to upgrade (expand and renovate) learning facilities will be undertaken within the existing TVET centers and premises. However, there is a potential for social risks associated with the project activities including: a) Risks of social exclusion of individuals who, because of their particular circumstances, may be disadvantaged or vulnerable. These include vulnerable (e.g. people with disabilities, from remote locations, young mothers) and members of ethnic groups. The risks of excluding these vulnerable and ethnic people from all aspects of core project activities and benefits may be associated with prejudice and nepotism against the vulnerable and ethnic people in providing access to project activities and benefits including Skill training programs, Job counselling services, the Skills-fund, Subsidy wage scheme and Employment opportunities. Risks may also involve difference in employment terms and conditions and wage levels that may be applied to different groups of employees by private sector firms and employers of core economic sectors to be selected at appraisal and engaged in the project implementation. The project will incorporate measures to ensure an inclusive and transparent approach to address these risks. b) Potential Occupational Health and Safety (OHS) risks under ESS2 in various project places that may occur with project beneficiaries and affected people. These include but should not be limited to: (i) health and safety risk of female and young trainees who will attend skill training courses and stay in dormitories expected provided by the TVET centers for a certain period of time depending on training courses they choose, (ii) risks anticipated from civil works to upgrade the learning facilities of TVET centers with workers (both contractor’s workers and community workers who may be hired) at the construction sites, (iii) risk may be experienced by employees in their workplace after recruitment depending on nature of jobs and works they apply for. These risks may be managed through Occupational Health and Safety Plan or Measures (OHSP/M) and Labor Management Procedures (LMP) to be Aug 31, 2021 Page 7 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) designed and applied to manage the OHS risks. c) Community Health and Safety (CHS) risks (ESS4) are mainly associated with the civil work and and potential labor influx including communicable diseases (waste, water and air borne diseases, COVID-19 outbreak) and those related to daily construction issues such as traffic safety, dust, noises and disturbance. These risks and impacts are expected to be limited, site specific and manageable given the works focus on upgrading and could be addressed through an Environmental and Social Code of Practice (ESCOP) which incorporates Environmental Code of Practice (ECOP) and Social Code of Conduct (CoC). Sexual Exploitation and Abuse/Sexual Harassment (SEA/SH) Risk Rating TBD Potential SEA/SH and GBV associated with the civil works will be assessed as part of project preparation after the concept stage. 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: The proposed project is required to assess potential ES risks and impacts and identify appropriate measures to address and manage such risks in accordance with relevant ESSs. Based on the up to date information on the nature and scale of the project activities available from the Concept Note, potential ES risks expected from the project For Official Use Only activities are described below: a) Risks of exclusion from project benefits that the project could have on the vulnerable and ethnic people (EP) including women and people with disability. These risks are associated with prejudices and nepotism against the vulnerable and ethnic people in providing access to project benefits including skill training programs, job opportunities and access to labor markets. Risk may also involve differences in employment terms and conditions and wage levels as well as the unequal access to Skills-Fund that will be applied and to be paid to different groups of employees in favor of majority group of Lao citizens and those well-connected with TVET and counselling centers and employers (private sector firms). Inclusive measures, as part of project design will be developed and applied to manage potential risks of excluding the vulnerable and ethnic groups including women and people with disability. These measures will cover aspects of trainee and employees selection criteria and process and will be summarized in a checklist with clear implementation and monitoring arrangements including agencies designated to be responsible for each measure/step. These will be further discussed and fleshed out at appraisal. In addition, a Labor Management Procedures (LMP) will be prepared and applied to address and manage such risks and issues associated with discrimination in workplaces availing of project financed wage subsidies. The LMP will be introduced and adopted by employers availing of these subsidies, transparent and competitive process of worker selection and staff employment; c) Potential health and safety risks and impacts on trainees and job seekers or employees who may have to attend skill training in TVET centers and stay in dormitories away from their home villages and their families include communicable diseases, workplace safety and SEA/SH issues which will be screened and assessed as part of preparation following the PCN meeting. An Occupation Health and Safety Plan or Measures (OHSP/M) and Community Health and Safety Plan or Measures (CHSP/M) will be prepared and adopted by the concerned project Aug 31, 2021 Page 8 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) stakeholders address such risks and impacts as per the ESS2 and ESS4 requirements. The OHSP/M and CHSP/M risks and mitigation measures relating to project workers will also be reflected in the Labor Management Procedures (LMP) to be prepared for the project as detailed in ESS2 and ESS4 sections. Training on OHSP/M and CHSPM will be provided for them to raise their awareness and their compliance will monitored by the project IAs and TVET centers. Involvement of security personnel and security force in project implementation specifically in all TVET centers is not anticipated. d) Since civil works to upgrade training and learning facilities are expected to be limited to renovation of existing facilities located within about 15 TVET centers (still to be selected), land acquisition and resettlement are not envisaged for this activity. However, some potential OHS and CHS risks and impacts associated with the civil works are envisaged on workers and the local communities surrounding the work sites. These include risks associated with potential labor influx such as communicable and infectious diseases (waste, water and air born diseases) and construction related issues (road safety issue, dust and noises and disturbance) due to transport of construction material and daily works. Potential SEA/SH and GBV risks will assessed as part of preparation following the PCN meeting. The CHSP/M and an Environmental and Social Code of Practice (ESCOP) which integrates a site-specific environment code of practice (ECOP), Code of Conduct (CoC) and COVID-19 prevention protocol will be prepared and adopted to manage such risks during the works. e) OHS risk may occur with teachers and students during skill training and practical sessions which involve the operation of training facilities, particularly laboratory, machinery, electricity shock, exposure to chemical and noise For Official Use Only pollutants; generation and management of solid waste including hazardous and nonhazardous wastes. Measures relating to OHS will be applied to the project taking into account the General EHSGs and, as appropriate, the industry specific EHSGs and other GIIP. The OHS will be set out in part of the ESCP. As a good environmental management practice, the update of the curriculum and training program will intergrade knowledge on environmental conservation, waste management, and water/energy efficiency can help on improving the quality of students to be ready for existing and future labor markets. Given that target beneficiaries and TVET centers located in various provinces of Laos, labor markets and activities are still to be selected and determined after concept stage, the following ES instruments will be prepared under the project: a) An ESCP will be prepared to ensure that the required materials measures and ESF instruments are in place as part of project design and implemented throughout the project period to address and mitigate risks identified under relevant ESSs. b) An Environmental and Social Management Framework (ESMF) will be prepared to manage and address the above discussed ES risks and relevant ESSs’s requirements. The ESMF provides guidance and process of identifying risks and measures or tools to be adopted to address the risks associated with specific project activities and works to be determined either at appraisal or before project implementation. The ESMF will include an environmental and social screening procedures and all the above listed risk management tools (inclusive measures, LMP, OHSP, CHSP, and Environmental and Social Code of Practice to be applied to the upgrading works) into a single document . The ESMF will include measures and steps to manage potential risks of excluding the vulnerable and ethnic groups including Aug 31, 2021 Page 9 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) women and people with disabilities, and these will be summarized in a checklist with clear implementation and monitoring arrangements including agencies designated to be responsible for each measure/step. It will also describe stakeholder consultation to be conducted, implementation and monitoring arrangement and Grievance Redress Mechanisms (GRMs) to be set up and tailored for specific project stakeholders, activities and locations. The ESMF is required to be cleared by the Bank and disclosed prior to appraisal. c) A Stakeholder Engagement Plan (SEP) will be prepared and disclosed prior to appraisal and will apply for the entire project. Its objective will be to ensure that beneficiaries including the vulnerable and ethnic trainees, job seekers and employees and affected communities will be consulted engaged in project design and implementation in compliance with ESS10 of the ESF. SEP will include a GRM for each of the target direct beneficiaries and affected people (trainees, job seekers and employees), and project workers (contractor’s workers). Areas where “Use of Borrower Framework� is being considered: The Borrower's E&S Framework is not proposed to be relied on for the Project, in whole or in part. However, relevant provisions of national framework, if consistent with applicable ESSs will be recognized in ESF documents to be prepared prior to appraisal. For Official Use Only ESS10 Stakeholder Engagement and Information Disclosure The project is expected to involve various groups of stakeholders from the national to village levels. These include, but should not be limited to different groups of labors, job seekers, trainees and young graduates, their families and communities, private sectors, government line agencies, mass organizations, Civil Society Organizations (CSOs) and Development Partners (DPs). The project stakeholders and the level of their engagement will be pre-identified and analyzed by the client. All project related stakeholders will be consulted on Project activities, potential risks and impacts and proposed mitigation measures. Gender inclusivity will be factored into all consultations including engagement with organizations representing women’s interests such as the Lao Women Union (LWU). Main groups of stakeholders will potentially include the different groups of labors, job seekers, trainees, young graduates and their families as well as the communities of vulnerable and ethnic people who will be directly and indirectly affected by project’s activities, officials of concerned government ministries and their TVET centers at national and provincial levels such as the Ministry of Education and Sports (MoES) and the Ministry of Labor and Social Welfare (MoLSW) which are main ministries engaged in skills development in Lao PDR with the former responsible for a larger share of the country’s training provision. All pre-employment TVET (public and private) is administered by MoES, while further training of the workforce is the responsibility of MoLSW. Additionally, other ministries undertake some skills training, as do mass organizations, such as Lao Women’s Union. The National TVET and Skills Development Council (NTSDC) under MoES and the 14 Trade Working Groups are meant to play a coordinating role between MoES and MoLSW as well as the private sector. The Lao National Chamber of Commerce and Industry, representing the private sector, has also been engaged in the skills development agenda. Finally, multiple development partners (DP) including ADB, UN agencies, Aug 31, 2021 Page 10 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) ILO, JICA, KOICA, GIZ, LuxDev and INGOs are active in this arena to support skill development and employment agenda in Laos. Measures and steps to manage potential risks of excluding the vulnerable and ethnic groups including women and people with disability will be developed at appraisal and summarized in a checklist with clear implementation and monitoring arrangement and agencies assigned to be responsible for each measure/step. As part of inclusive process, the government mass organizations, Lao Women Union and Lao Front for National Development which have local presence nationwide from village up to the central levels can be engaged in gender and ethnic sensitive awareness raising and in providing counselling services for ethnic and female trainees and jobseekers participating in the project activities. Specialized CSOs, both local NGOs (commonly known as Non-profit Associations (NPAs) and international NGOs working on gender and women’s advocacy in the country will be engaged in project implementation to support the IAs to generate demand and promote women and ethnic groups participation in the project activities. All consultations will follow national protocols and World Bank’s guidelines for prevention of transmission of COVID-19 virus and other infectious diseases. A Stakeholder Engagement Plan (SEP) is required to be prepared and applied by the project in accordance with ESS10. The main purposes of SEP are to: • Ensure that beneficiaries, affected people especially vulnerable and ethnic people and agencies will be engaged and consulted, especially on project design options; For Official Use Only • Identify all project stakeholders including their priorities and concerns, and ensure the project has ways to incorporate these; • Identify strategies for information sharing and communication to stakeholders, including project information on social risks and impacts, as well as consultation of stakeholders in ways that are meaningful and accessible throughout the project cycle; • Establish an accessible, culturally appropriate, and responsive grievance mechanism tailored to different groups of project beneficiates and affected people and places. These include GRM tailored for trainees and job seekers to be established at the TVET centers, GRM for employees in private sector firms/workplace and GRM for contractors’ workers; • Identify inclusive measures including selection criteria and process of engaging target beneficiaries (vulnerable and ethnic trainees, jobseekers and employee)s in project activities implementation, • develop a strategy for stakeholder participation in the project monitoring of project impacts, and • Provide measures and steps to ensure inclusion of the vulnerable and ethnic groups to developed and summarize in a checklist with clear implementation and monitoring arrangements including agencies assigned to be responsible for each measure/step and timeframes. The SEP will be consulted, completed and disclosed prior to project appraisal. B.2. Specific Risks and Impacts Aug 31, 2021 Page 11 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions The proposed project will support students/trainees and job seekers to attend skill training in selected TVET centers and facilitate their transition to labor markets by providing them with counselling services on job opportunities and linking them with potential employers after graduation. These include firms and entrepreneurs of core economic sectors to be selected and engaged in the project, who may avail of project-financed wage subsidies offered as an incentive to recruit students/trainees and job seekers. The project will also finance small scale civil work to upgrade training facilities under TVET centers which are expected to be undertaken by local contractors. These project activities could potentially generate labor and working condition related risks including: (i) Risks of discrimination and nepotism against the poor, women, vulnerable and ethnic people in providing access to labor markets and job opportunities expected to be offered by private firms and entrepreneurs of core economic sectors to be selected. Risk may involve different employment terms and conditions and scales of labor wages or salaries applied to different groups of employees and labors by such employers because the vulnerable and ethnic employees often lack legal awareness, social protection as well as negotiation skills. A Labor Management Procedures (LMP) will be prepared and adopted under the project to address and manage such risks and issues associated with discrimination and inequality in worker employment terms and working conditions against the vulnerable and ethnic employees in their workplaces. The LMP will be adopted by the employers availing of project financed wage subsidies to ensure fair, transparent and competitive process of labor recruitment and employment. The LMP will be included in the ESMF as annex. For Official Use Only (ii) Potential OHS risks and accidents that may happen with trainees during skill training in class rooms and practical sessions in learning facilities or workshops (operating machineries, electric apparatus and handling with hazardous and non-hazardous pollutants) provided by the TVET centers. An Occupational Health and Safety Measures (OHSM) including safety at work instructions and protocol to prevent and address COVID-19 spread and incidents will be designed and applied by the TVET centers to manage such risks. The participating TVET centers would be required to provide trainees with OHSM training and necessary Personal Protected Equipment (PPE) including safety gloves, helmets and eye glasses, and basic hygiene and health care facilities such as hand washing and cleaning facilities with soaps, alcohol gels, thermometers and first aid kits. (iii) In addition, OHS risks and incidents could also occur with workers (both community and contractor’s workers) to be hired for civil works to upgrade the 15 learning facilities in the TVET centers to be selected at appraisal. Worker health and safety measures will be developed and incorporated into an Environmental and Social Code of Practice (ESCOP). The ESCOP will be prepared and applied by work subprojects and contractors to upgrade the learning facilities of TVET centers as a site specific instrument to manage such risks as well as other environmental and social risks and impacts anticipated from civil works and labor influx. COVID-19 protocol will be also required to be adopted by contractors and their workers to prevent and address COVID-19 spread and incidents in the construction and workers’ camp sites as well as in surrounding local communities. ESS3 Resource Efficiency and Pollution Prevention and Management Aug 31, 2021 Page 12 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) The exact VTETs to be supported by the project have not been identified at this stage, however, the project will support renovation civil work to rehabilitate and upgrade learning and training facilities where the following potential risks defined under ESS3 will have to be assessed, monitored and addressed. Energy Use: The efficient use of energy is an important, especially during the operation of learning and training center. As part contribution to the sustainable development, VTETs to consider the way on efficient use of energy by adopting measures specified in the World Bank Group Environmental Health and Safety Guidelines (EHSGs) to optimize energy usage to the extent technically and financially feasible. Air emissions: During the rehabilitation phase, air emissions will include exhaust from construction vehicles and machinery, and fugitive dust generated by civil work’s activities. Those most likely to be affected are people living within the proximity of the sites, teachers and students, and workers. The implementation of mitigation measures such as dust suppression will be applied to minimize the impact of air emissions during rehabilitation civil works, and residual impacts are expected to be limited in scope and duration. Noise: During the rehabilitation phase, noise may likely be generated from the use of construction machinery, vehicle movements and construction activities. The relatively short-term and small-scale nature of the works suggest that noise levels will not be excessive or cause long-term nuisances. The construction works will however, present short- term nuisance to the public, teachers and trainees, and communities adjacent to some of the VTET. Possible solutions include restricting the hours of operation for civil works during the non-working hour. For Official Use Only Waste management: Renovation activities will generate solid waste which will primarily include construction waste and possible hazardous waste such as asbestos containing materials (ACM), hazardous equipment (from the laboratories) and hydrocarbon oils from construction machinery and vehicles. As ACM is not controlled and widely used in Laos, especially in old buildings, the ESCOP will include related screening and mitigation measures in the case of asbestos findings during civil works. The waste generated by this type of civil works whose quantity is not anticipated to be significant and will be disposed at designated sites in a manner that is safe for human health and environment. Water use: water use for the civil work will be limited and will not course an issue during the operation of training facilities. Impact mitigation measures addressing requirement under ESS3 will be established as part of ESCOP as previously assessed under ESS1 and implemented by the VTET centers. ESS4 Community Health and Safety There are potential risks relevant to ESS4 anticipated from project activities mainly under Component 1. These include: (i) health and safety risks of trainees and job seekers that may be occur during training activities and in dormitories including risk of SEA/SH, GBV (which is still to be assessed after the PCN meeting) and communicable diseases Aug 31, 2021 Page 13 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) (waste, water and air borne diseases, ongoing COVID-19 outbreak). Community Health and Safety Plan or Measures (CHSP/M) will be prepared and adopted by the TVET centers to address such risks and impacts as per the ESS4 requirements. Training on CHSP/M will be provided for the center's staff and trainees to raise their awareness and ensure their compliance with the CHSP/M. Engagement of security personnel and security force in project implementation particularly in the TVET centers and trainees' dormitories is not anticipated. However, this will be confirmed at appraisal. Potential CHS risks and impacts are anticipated from the civil works to expand and rehabilitate learning facilities in TVET centers on the local communities surrounding the work sub-projects sites. These include risk associated with potential labor influx including communicable and infectious diseases, COVID-19, and work related impacts such as road safety issue, dust, noises, disturbance (both physical and mental) due to transport of construction materials, machinery operations and daily construction activities. Potential SEA/SH and GBV associated with the civil works will be assessed as part of project preparation after the concept stage. The CHSP/M and an Environmental and Social Code of Practice (ESCOP) which integrates a site-specific EMP and Code of Conduct for addressing potential SEA/SH still to be identified will be prepared and adopted to manage such risks. Both CHSP/M and ESCOP will be provided in the ESMF as annexes to be prepared and disclosed prior to appraisal. Risks of SEA/SH and GBV will be screened and assessed in all project locations including a) the training centers (for For Official Use Only trainees), b) workplaces (jobseekers and employees) and c) construction sites with local communities surrounding (for contractor’s workers and affected communities) after the concept meeting. Appropriate measures will be developed to address such risks. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement The project will not finance activities and works that require land acquisition and resettlement. Works to be financed under Component 1 will be limited to renovation existing learning facilities and buildings located within the same plots of land and premises belonging to the MoES and which are free of all encumbrances. Thus, no land acquisition and resettlement are not envisaged under these works . Works and activities that involve land acquisition and resettlement will be included in a negative list of ineligible expenses to be applied under the project. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources ESS 6 is not currently relevant as all project activities are planned to be carried out mainly within the existing TVETs and workplaces. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities Ethnic people defined as Indigenous People under ESS7 including ethnic trainees, job seekers and employees are expected to benefit and to be directly and indirectly affected by the project’s activities. Various TEVT centers to be Aug 31, 2021 Page 14 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) selected to participate in the project are located in different provinces where ethnic trainees, graduates, job seekers employees are expected to attend skill training programs and use their counselling services for information on job opportunities available and to participate in labor markets. A number of ethnic beneficiaries expected to involve and benefit from the project activities, will be determined during project preparation. There are potential risks that the ethnic people particularly women and those who are from poor households in rural remote villages could be excluded or left behind from the project benefits and activities because: Firstly, risk of discrimination and nepotism against the ethnic trainees and job seekers in providing access to the Skill Fund, skill training programs, counselling services, lodging facilities, wage subsidies and access to labor markets. The project will ensure that these ethnic trainees will be well-informed and consulted on the these project activities support expected to be provided by the project and TVET centers and that fair and transparent mechanism is in place to ensure equal access and benefit from the project investments in a culturally appropriate manner. These material measures will be provided in the ESMF, SEP and ESCP to ensure inclusion of these ethnic beneficiaries in the project activities. A Labor Management Procedures (LMP) will be tailored and applied to address and manage such risks and issues associated with working conditions, discrimination and inequality in workplaces benefitting from project financed wage subsidies. In practice, this will mean the LMP will be also introduced and adopted by the private sector employees availing of these subsidies as a whole to ensure fair, transparent and competitive process of worker selection and employment. For Official Use Only Secondly, OHS and CHS risks and incidents relevant to ESS2 and ESS4 may occur with ethnic trainees and job seekers in skill training, dormitories and in workplaces if employed. These may include communicable diseases and accidents that may happen during practical training sessions (handling with machines, electric apparatus, hazardous and non- hazardous pollutants). OHS and CHS plans will be tailored and applied to mitigate such risks and adverse impacts on the ethnic trainees and employees. Potential risks of SEA/SH and GBV on the ethnic group of beneficiaries associated with project activities will be screened and assessed during the advanced project preparation or after the PCN review meeting. The ESMF and SEP to be prepared and applied under the project together will include measures to enhance inclusion of ethnic groups consistent with ESS7. They will thus serve as an ethnic group engagement framework equivalent to IPPF by addressing and mitigating the risks of excluding the EPs from the project benefits and avoid potential adverse impacts on them. This integrated approach is justified given the limited risks to ethnic groups. This SEP will provide inclusive, ethnic and gender sensitive approach to consulting, engaging and enabling them to participate in the project activities. This inclusive approach will include meaningful consultation through ethnic sensitive counselling services, information disclosure and transparent process of selecting trainees and employees to participate in skill training program and and in labor markets using the pre-defined trainee and employee-selection criteria. Special considerations and priority will be given to the vulnerable and ethnic people in the selection criteria and actual selection process. The SEP will also provide an accessible and culturally appropriate, grievance redress mechanism (GRM) tailored for the ethnic groups of trainees and jobseekers and employees such as by engaging their ethnic and women's representatives and organizations like NFND and LWU as well as CSOs in GRM as well as in the Aug 31, 2021 Page 15 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) consultation, counselling services and the process of selecting trainees and recruiting employees in private sector firms and entrepreneurs as required under ESS2, ESS7 and ESS10. ESMF, SEP and ESCP will also describe implementation, coordination and monitoring arrangements to be in place to ensure that these inclusive measures and other ESSs’ requirements provided are affectively applied, monitored through out the project lifetime. ESS8 Cultural Heritage ESS8 is not currently relevant to the project. The civil works to upgrade the learning facilities are expected to take place within the existing buildings of TVET centers and premises to be selected. Moreover, the project IAs and TVET centers will mainly and directly interact and provide direct support to the target individual beneficiaries (trainees, labors, job seekers, employees and private sector entrepreneurs/employers). Thus, potential risk and impacts on both tangible and intangible cultural heritage risks are not envisaged under the project. ESS9 Financial Intermediaries The project will provide direct financial support to the client and not through a financial institution or intermediaries. For Official Use Only B.3 Other Relevant Project Risks There is no currently other relevant risks to the Project. All risks have been described against the standards above. Should "Other Relevant Project Risks" be disclosable? No C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No III. WORLD BANK ENVIRONMENTAL AND SOCIAL DUE DILIGENCE A. Is a common approach being considered? No Financing Partners Currently no financing partner is involved. Aug 31, 2021 Page 16 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) B. Proposed Measures, Actions and Timing (Borrower’s commitments) Actions to be completed prior to Bank Board Approval: The following ES risks management documents will be prepared, cleared and disclosed prior to appraisal: 1) Environmental and Social Commitment Plan (ESCP) 2) Stakeholder Engagement Plan (SEP) 3) Environmental and Social Management Framework (ESMF) incorporating (i) inclusive measures to manage risks of excluding the vulnerable and ethnic people, (ii) Labor Management Procedures (LMP), (iii) Occupational Health and Safety Plans or Measures (OHSP/M), (iv) Community Health and Safety Plans or Measures (CHSP/M) and (v) Environmental and Social Code of Practice including provisions for screening and managing asbestos materials, hazardous equipment and hydrocarbon oils, and Social Code of Conduct for workers in construction sites. Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP): The following agreements and measures will be implemented following Bank’s approval: - Assigning in the PIU ESF focal point responsible for ESF implementation - Recruiting ESF consultants as required to support ESF implementation - Preparation, disclosure and consultation on ESF documents (ESCP, SEP and ESMF). - Effective operationalization and effective implementation of GRMs. - Meaningful stakeholder engagement throughout project implementation. For Official Use Only - Effective operationalization of Incident Management System. - Implementation risks management measures and their monitoring. - ESF capacity building for the implementing agencies. - Allocation of adequate resources (human, including consultants and financial resources) for the implementation of risk management measures and monitoring. C. Timing Tentative target date for preparing the Appraisal Stage ESRS 07-Oct-2021 IV. WORLD BANK ES OVERSIGHT Corporate advice/oversight will be provided by an Environmental and Social No Standards Adviser (ESSA) during project preparation V. CONTACT POINTS World Bank Contact: Tara Beteille Title: Senior Economist Telephone No: 578-46223 Email: tbeteille@worldbank.org Aug 31, 2021 Page 17 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) Contact: Francesca Lamanna Title: Senior Economist Telephone No: 5778+8397 / 66-2-6868397 Email: flamanna@worldbank.org Borrower/Client/Recipient Borrower: Ministry of Finance Implementing Agency(ies) Implementing Agency: Ministry of Education and Sports Implementing Agency: Ministry of Labor and Social Welfare VI. 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 For Official Use Only VII. APPROVAL Task Team Leader(s): Francesca Lamanna, Tara Beteille Practice Manager (ENR/Social) Susan S. Shen Recommended on 30-Aug-2021 at 19:25:16 GMT-04:00 Aug 31, 2021 Page 18 of 18