INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA2490 Public Disclosure Copy Date ISDS Prepared/Updated: 04-Feb-2013 Date ISDS Approved/Disclosed: 17-Jan-2013, 21-Feb-2013 I. BASIC INFORMATION 1. Basic Project Data Country: Burundi Project ID: P127258 Project Name: Sustainable Coffee Landscape Project (P127258) Task Team Paola Agostini Leader: Estimated 23-Jan-2013 Estimated 30-Apr-2013 Appraisal Date: Board Date: Managing Unit: AFTN3 Lending Specific Investment Loan Instrument: Focal Area: Multi-focal area Sector: Agricultural extension and research (10%), Crops (10%), Forestry (30%), General public administration sector (20%), General water, s anitation and flood protection sector (30%) Theme: Land administration and management (40%), Biodiversity (40%), Environmental policies and institutions (20%) Public Disclosure Copy Financing (In USD Million) Financing Source Amount BORROWER/RECIPIENT 0.00 Global Environment Facility (GEF) 4.20 Total 4.20 Environmental B - Partial Assessment Category: Is this a No Repeater project? 2. Global Environmental Objective(s) The project development objective is to pilot sustainable land and water management practices in the coffee landscape of Burundi. 3. Project Description The project will assist Burundi to improve the sustainability of selected areas within the coffee landscape. This will be done through: (i) implementing sustainable land and water management Page 1 of 10 practices in productive areas in order to prevent further land degradation and rehabilitate degraded areas (factors that have negatively impacted coffee production); (ii) establishing a shade-grown coffee pilot program that promotes, with environmentally-friendly production technologies, a Public Disclosure Copy polyculture that includes coffee as well as various types of trees and other plants that provide additional products for income generation and consumption; (iii) promoting sustainable management in a key PA, under the premise that protected areas demarcation has been agreed between key stakeholders and the neighboring local communities have alternative sources for improving livelihoods, so that the risk of agricultural expansion to the area will be reduced; (iv) addressing point-source pollution through the establishment of efficient, environmentally-friendly coffee processing technologies and the strengthening of policies and regulations; (v) promoting marketing and commercialization strategies for high-quality coffee, planted with shade and processed with reduced environmental negative impacts; and (vi) piloting initiatives that generate alternative sources of income such as agri-tourism and ecotourism. Accessing higher value markets with shade- grown coffee will benefit the coffee sector as well as generate an incentive for the conservation and improved management of the environment. These measures will also increase communities’ resilience to adverse shocks. All of the above will be integrated under a landscape approach that considers both geographical and socio-economic considerations in order to manage the productive and protected areas within a landscape mosaic. The project will finance priority recommendations of the Rapid Strategic Environmental Assessment (R-SEA) of the Coffee Sector. The World Bank assistance will build on the lessons learned from the Lake Victoria Environmental Management Project, Phases I and II (LVEMP I and II) and the institutional arrangements of the Agro-Pastoral Productivity and Markets Development Project (PRODEMA). These are two already-approved IDA projects with which coordination has been established and which will form the baseline for the new GEF project. The components to be financed with GEF resources are the following: Component 1: Sustainable Coffee Landscape Management (US$2.8 M) Public Disclosure Copy The component will finance works, technical assistance, workshops, goods, services and operational costs in order to promote sustainable land and water management, agroforestry and shade grown coffee cultivation, as well as conservation activities in one protected area. The component will address the landscape approach that integrates people’s livelihood objectives in the management of the different ecosystems within the landscape (including productive and protected areas). The connectivity between ecosystems will be considered as well as the link between local-site level action (at farm, forest, protected area) and the broader landscape level. The component will support the following activities. SLWM subprojects will be awarded to applicants (farmer groups, associations or cooperatives) in degraded areas of the landscape mosaic. The subprojects will provide financial and technical assistance to undertake the changes that are required to generate economic and social benefits for the land while minimizing land degradation, rehabilitating degraded areas and ensuring an optimal and sustainable use of land and water resources. The component will promote shade-grown coffee plantations through on-the-ground investments and training subprojects. A sustainable shade-grown coffee system promotes not only coffee cultivation but a polyculture and intercropping system that mixes coffee with various trees and other plants, increasing biological and income diversity, and resilience to climate and economic shocks. The Page 2 of 10 project will also support the process for the GoB to become ready for the REDD+ Strategy. The component will also finance research on the effects of different kinds of shade on land Public Disclosure Copy productivity, soil and water quality, and presence of pests, among others. Results in the production of shade-grown coffee will be assessed in terms of environmental and financial benefits as well as the factors that affect decisions about tree cover. Finally, the component will support strengthening the protection and management of the globally significant Bururi Forest Nature Reserve (BFNR). Investments in this protected area will become a pilot to study the interrelation between coffee, protected areas, and biodiversity using the landscape approach. Sustainable livelihood subprojects will be financed for the communities living around Burundi that are dependent on its natural resources (including the Batwa families). Component 2: Addressing Pollution Point Sources in Coffee Washing Stations (US$0.65 million) The component’s objective is to address the sources of pollution in the coffee washing stations (CWS) that will have direct environmental benefits and support attempts to access higher value markets that demand improved production standards. The component will finance works, goods, services, technical assistance, training and operational costs in order to promote environmentally sound processing of coffee cherries through the following activities. The project will upgrade and/or establish six effluent control systems including water efficient eco- pulpers at washing stations (two in each target province) managed by farmer cooperatives or privately-owned stations . The main purpose of these systems will be to reduce the volume of water consumption and remove waste organic matter that can be used for composting. The component will also finance the establishment of standards and regulations to promote the environmentally sound operation of CWSs. In addition, it will strengthen the institutional capacity to monitor the implementation of sustainable technologies and the enforcement of regulations and Public Disclosure Copy policies. Component 3: Diversification of Livelihoods (US$0.4 million) This component would finance works, goods, technical assistance, workshops and training, technical assistance, workshops and training, and operational costs for the following activities. The component will support a marketing study and action plan to be conducted by InterCafé to identify target markets for the region’s coffee, along with potentially suitable certification schemes. Following the marketing study, the project will finance initial certification costs for three farmer cooperatives and washing stations supported under the previous components. The certification process will promote or strengthen increases in the adoption of environmentally friendly management practices. The project will also support an ecotourism pilot in the Bururi Forest Nature Reserve and will pilot two community based agritourism initiatives in selected coffee farms. These pilots will work on the premise that if key stakeholders and the local communities living in the buffer zones have alternative sources for improving livelihoods compatible to biodiversity conservation, then the incentive to protect the forests is increased and the risk of expansion of agriculture to the Reserve or other protected areas will be reduced. Page 3 of 10 Component 4: Knowledge and Learning Project Management (US$0.4 million) Public Disclosure Copy The fourth component will finance operational costs, services and technical assistance for the project’s management and the implementation of the project’s monitoring and evaluation (M&E), particularly an Impact Evaluation (IE) as well as communication activities. Specifically, the project will finance the employment of an additional accountant and expert in sustainable land management to integrate PRODEMA’s PCU, additional costs for PRODEMA’s M&E the implementation of an impact evaluation to assess the impact of shade coffee on specific variables, and a communication strategy for the project. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The project’s area of intervention will be located in three of the country’s provinces, chosen according to the following criteria: (i) already included within PRODEMA; (ii) high potential for cultivating shade-grown coffee; (iii) presence of operational coffee washing stations; and (iv) proximity to a national protected area. Based on these criteria, the three provinces selected are: • Bubanza, bordering Kibira National Park • Bururi, where the Bururi Forest Nature Reserve is located • Muyinga, bordering the Ruvubu National park. Muyinga has also demonstrated having a population receptive to innovations and where the coffee plantations are young. As the project gathers lessons and experiences, it is expected that the activities could be replicated and scaled up initially in other PRODEMA and LVEMP areas. 5. Environmental and Social Safeguards Specialists George Campos Ledec (AFTN3) Antoine V. Lema (AFTCS) Public Disclosure Copy 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes Environmental Assessment (OP/BP 4.01) BP 4.01 applies to this Category B project, which is intended to be highly positive overall from an environmental and social standpoint but would influence activities (cultivation of coffee and associated crops; coffee washing stations) that are inherently somewhat sensitive from an environmental standpoint. Natural Habitats OP/BP 4.04 Yes Natural Habitats (OP/BP 4.04) is triggered in that the project would help to conserve natural habitats, but the project is not expected to involve any natural habitat loss or degradation. The project design would seek to discourage—and would certainly not support—the expansion of coffee plantations within protected areas. Forests OP/BP 4.36 Yes Forests (OP/BP 4.36) is triggered since the project would seek to improve forest conservation within the Bururi Forest Nature Reserve. The Page 4 of 10 project would not support forest harvesting, other than the sustainable utilization of wood from the pruning of coffee shade trees (which is outside Public Disclosure Copy the scope of OP 4.36). Pest Management OP 4.09 Yes Pest Management (OP 4.09) is triggered because pest management is often a part of the cultivation of coffee and associated crops. Physical Cultural Resources OP/ No Physical Cultural Resources (OP/BP 4.11) is not BP 4.11 triggered because the project’s civil works would be very small scale (such as rehabilitation of the Bururi Forest Nature Reserve headquarters building) and would not involve any significant excavation or earth movement. Indigenous Peoples OP/BP 4.10 Yes Indigenous Peoples (OP/BP 4.10) is triggered because the project area includes one or more Batwa indigenous communities, particularly in the vicinity of the Bururi Forest Nature Reserve. Involuntary Resettlement OP/BP Yes Involuntary Resettlement (OP/BP 4.12) is 4.12 triggered because project activities may induce land acquisition; however, impacts are presumed to be limited and site specific. A Process Framework will be prepared to address potential livelihoods issues in the Bururi Forest area, in accordance with OP 4.12. Safety of Dams OP/BP 4.37 No Safety of Dams (OP/BP 4.37) is not triggered because the project would not support any dam construction, nor does it depend upon existing Public Disclosure Copy dams for its physical functioning. Projects on International No Projects on International Waterways (OP/BP Waterways OP/BP 7.50 7.50) is not triggered because the project would not adversely affect the quantity or quality of water available to downstream countries. Projects in Disputed Areas OP/BP No Projects in Disputed Areas (OP/BP 7.60) is not 7.60 triggered because all project activities take place within the undisputed territory of Burundi. II. Key Safeguard Policy Issues and Their Management A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts: The expected environmental impacts from this project would be overwhelmingly positive, including (i) reduced soil erosion and improved water retention from the planned investments in sustainable land management, including shade coffee cultivation; (ii) reduced water pollution from project-supported improvements in coffee washing practices; and (iii) increased biodiversity conservation from the improved protection and management of the Bururi Forest Nature Reserve, along with the expected addition of different species of shade trees to coffee plantations. Page 5 of 10 Any potential adverse environmental impacts from this project would be rather minor and linked to (i) small-scale civil works that might be built to improve management of the Bururi Reserve and to implement the Indigenous Peoples Plan and possibly (ii) changes in agricultural pest Public Disclosure Copy management practices in coffee cultivation areas (which, on balance, are more likely to be environmentally positive). The social impacts of the proposed project are also expected to be largely beneficial, both in providing enhanced land and water management practices and in securing sources of incomes, livelihoods, and food security. The economy of the project area is predominantly agriculture and livestock farming. The main food crops produced are cereals, root crops, vegetables and bananas; coffee is the most important cash crop. The project will contribute to sustaining and strengthening coffee and food crop production through sustainable land and water management practices. The expected social benefits include enhanced of sources of livelihood, job creation, and strengthening of local community ownership of sustainable land management investments. The project will include investments in strengthening the management of the existing Bururi Forest Nature Reserve and promoting increased ecotourism in the area. Although no physical resettlement of people will take place under the project (and none is needed for the Bururi Reserve), the project will support to maintain and improve sustainable livelihoods for the people who currently obtain natural resources from the reserve, as described in the Process Framework. The project will also provide targeted assistance to a Batwa indigenous community that resides near the Bururi Reserve. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: If the project is successfully implemented, the long-term environmental and social impacts of the project are all expected to be positive. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. The existing project design is already expected to avoid or minimize any adverse environmental or social impacts. Public Disclosure Copy 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. To address environmental and social safeguards, the project would use the following existing safeguards instruments prepared for the ongoing Agro-Pastoral Productivity and Markets Development Project (PRODEMA): (i) Environmental and Social Impact Assessment (ESIA) (Analyse d’Impact Environnemental et Social du Projet, February 2010), which includes an Environmental Management Plan (Plan de Gestion Environnementale) and Pest Management Plan (Plan de Gestion Integre de Pestes et des Pesticides); (ii) Resettlement Policy Framework (Cadre de Politique de Reistallation Involontaire des Populations, December 2009); and (iii) Indigenous Peoples Plan (Plan d’Action pour le Developpement des Batwa, December 2009) for the overall project area. These existing safeguards instruments have been updated for the project with an explanatory Cover Note, endorsed by the GoB and disclosed for the project as new documents. These safeguards instruments would suitably cover this new project as well as the ongoing PRODEMA because (i) the new project’s proposed investments in sustainable land management, improved coffee cultivation (under shade) and processing (washing), and small civil works (such as to enhance ecotourism and protected area management at Bururi Forest) are a subset of the broader range of agricultural and natural resource management investments which have already been assessed for PRODEMA; (ii) the 3 provinces (Bubanza, Bururi, and Muyinga) in which the Page 6 of 10 new project would operate are the same as in PRODEMA (which also covers additional provinces); (iii) the new project would be implemented by the same lead institution (Ministry of Agriculture and Livestock, MINAGRIE) and guided by the same National Policy Steering Public Disclosure Copy Committee; and (iv) the beneficiaries (coffee and other farmers) and other stakeholders under the new project would be a subset of those under PRODEMA. In addition to these existing PRODEMA safeguards instruments, two new documents were prepared for the new project: (i) a Process Framework to address sustainable livelihood issues in the vicinity of the Bururi Forest Nature Reserve and (ii) an Addendum to the 2009 Indigenous Peoples Plan (IPP) to cover the Batwa indigenous community that resides near the Bururi Reserve. In addition, the Pest Management Plan (Plan de Gestion Integre de Pestes et des Pesticides) imbedded within the PRODEMA ESIA was specifically adapted to the new project and publicly disclosed as a separate document. On January 22 2013, the Government of Burundi approved and published the safeguard documents in accessible areas such as public libraries, the office of the Minister of Agriculture and Livestock, and the decentralized administrative offices. These documents were also sent by the World Bank to InfoShop (January 25, 2013) and publicly disclosed. The documents disclosed were: • Analyse d’Impact Environnementale et Sociale (Environmental and Social Impact Assessment, ESIA) • Plan de Lutte Antiparasitaire (Pest Management Plan, PMP) • Cadre de Politique de Réinstallation Involontaire des Populations (Resettlement Policy Framework, RPF) • Cadre Fonctionnel de la Gestion durable de la Reserve Naturelle Forestière de Bururi et de l’Ecotourisme (Process Framework, PF) • Plan D’action Additionnel pour Le Developpement des Batwa Résidents Autour de la Réserve Forestière de Bururi (Indigenous Peoples Plan, IPP) Public Disclosure Copy The Client’s institutional capacity to address safeguards issues is incipient but growing. In 2010, the Ministry of Water, Environment, Land and Urban Planning (MEEATU) was established. A MEEATU Environmental Unit was created by the Ministry in 2011; it includes approximately 5 staff (two environmental specialists, one economist, one sociologist and one lawyer). The Unit will ensure overall monitoring of this project’s safeguards compliance. The Ministry of Agriculture, which is the project implementing authority, does not have an in-house environmental capacity; like other line ministries, it relies on MEEATU. Through the MEEATU predecessor, the Client demonstrated its ability to address safeguards issues by facilitating the preparation of the PRODEMA safeguards instruments. The implementation of the safeguards instruments for the Sustainable Coffee Landscape will build on the capacity developed by PRODEMA, which is also the main implementing agency for this project. The project will provide additional support to the PRODEMA environmental office through environmental and social safeguards consultancy services. The National Policy Steering Committee (NPSC) established for PRODEMA will be responsible for coordination of cross-sectoral dialogue and activities at the national level. Specifically, the NPSC will be responsible for: (i) providing national-level project operational policy guidance; (ii) approving national project investments; (iii) reviewing and approving project annual work plans Page 7 of 10 and budgets; and (iv) resolving implementation bottlenecks to achieve the project’s objectives (results and outcomes). The NPSC will consist of the Permanent Secretaries from the actively involved line ministries, as well as the Ministries responsible for EAC Affairs. Public Disclosure Copy 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Public consultations with project beneficiaries, local NGOs, and other stakeholders (including consultations specifically with indigenous Batwa groups) have been carried out on the environmental (including social) aspects of the Sustainable Coffee Landscape Project, using the PRODEMA safeguard documents and relevant amendments as a reference. B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 21-Jan-2013 Date of submission to InfoShop 25-Jan-2013 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors "In country" Disclosure Burundi 22-Jan-2013 Comments: These are the dates for receipt and disclosure with the cover note. The original PRODEMA ESIA was disclosed in February 2010. Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank 21-Jan-2013 Date of submission to InfoShop 25-Jan-2013 "In country" Disclosure Burundi 22-Jan-2013 Public Disclosure Copy Comments: These are the dates for receipt and disclose of the RPF with the cover note, and the new Process Framework for Bururi. The original PRODEMA RPF was disclosed in December 2009. Indigenous Peoples Development Plan/Framework Date of receipt by the Bank 23-Jan-2013 Date of submission to InfoShop 25-Jan-2013 "In country" Disclosure Burundi 22-Jan-2013 Comments: Pest Management Plan Was the document disclosed prior to appraisal? Yes Date of receipt by the Bank 21-Jan-2013 Date of submission to InfoShop 25-Jan-2013 "In country" Disclosure Burundi 21-Jan-2013 Comments: These are the dates for receipt and disclosure with the cover note. The original PRODEMA PMP was disclosed in February 2010 as part of the ESIA. Page 8 of 10 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. Public Disclosure Copy 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 Are the cost and the accountabilities for the EMP incorporated Yes [ ] No [ ] NA [ ] in the credit/loan? OP/BP 4.04 - Natural Habitats If the project would result in significant conversion or Yes [ ] No [ ] NA [ ] degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank? OP 4.09 - Pest Management If yes, has the PMP been reviewed and approved by a Yes [ ] No [ ] NA [ ] safeguards specialist or SM? Are PMP requirements included in project design?If yes, does the project team include a Pest Management Specialist? OP/BP 4.10 - Indigenous Peoples If the whole project is designed to benefit IP, has the design Yes [ ] No [ ] NA [ ] been reviewed and approved by the Regional Social Development Unit or Sector Manager? OP/BP 4.12 - Involuntary Resettlement If yes, then did the Regional unit responsible for safeguards or Yes [ ] No [ ] NA [ ] Sector Manager review the plan? Public Disclosure Copy OP/BP 4.36 - Forests Does the project finance commercial harvesting, and if so, Yes [ ] No [ ] NA [ ] does it include provisions for certification system? 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 [ ] 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? Page 9 of 10 Have satisfactory implementation arrangements been agreed Yes [ ] No [ ] NA [ ] with the borrower and the same been adequately reflected in Public Disclosure Copy the project legal documents? III. APPROVALS Task Team Leader: Paola Agostini Approved By Sector Manager: Name: Magdolna Lovei (SM) Date: 21-Feb-2013 Public Disclosure Copy Page 10 of 10