INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: ISDSC588 Public Disclosure Copy Date ISDS Prepared/Updated: 28-Mar-2012 I. BASIC INFORMATION A. Basic Project Data Country: Africa Project ID: P130174 Project Name: First Part of the Second Phase of the Niger Basin Water Resources Development and Sustainable Ecosystems Management Program - APL 2A (P130174) Task Team Leader: Amal Talbi Estimated Appraisal Date: 26-Jun-2012 Estimated Board Date: 12-Oct-2012 Managing Unit: AFTWR Lending Instrument: Adaptable Program Loan Sector: Large Hydropower (25%), General water, sanitation and flood protection sector (25%), Irrigation and drainage (25%), General agricult ure, fishing and forestry sector (25%) Theme: Water resource management (40%), Other rural development (30%), Climate change (15%), Social risk mitigation (15%) Financing (In USD Million) Financing Source Amount BORROWER/RECIPIENT 10.00 International Development Association (IDA) 153.00 African Development Bank 60.00 FRANCE French Agency for Development 100.00 Total 323.00 Environmental Category: A - Full Assessment Is this a Repeater project? No B. Project Objectives Public Disclosure Copy Approved by the Board in July 2007, the objective of the IDA-funded Program (WRD-SEM APL), is to “enhance regional coordination, development and the sustainability of water resources management in the Niger River Basin�. This objective remains the same for the entire Program. The development objective of the proposed Project (WRD-SEM APL 2A) is to “increase access to water for agriculture development and energy generation in selected areas.� C. Project Description Key institutional and planning activities required prior to launching the implementation of the Niger Basin 20-year Investment Program (IP) have progressed satisfactorily and the countries are preparing to move to the construction stage. It is an opportune moment for the Niger Basin Authority (NBA), with its enhanced institutional capacity, to support the countries in implementing the large and complex IP. The proposed Project, which will support physical infrastructure investments of the Kandadji Program is an example of the next generation of high risk-high reward projects in the Niger Basin that are planned under the SDAP and the 20-year NBA investment program. The design of the IDA-funded Program (WRD-SEM APL) as an APL was – and still is – a strategic and relevant approach, providing the flexibility needed to support the Basin countries to coordinate and implement the investments projects emerging from the SDAP and the IP. The Kandadji Program will generate numerous economic benefits. Based on the feasibility study (2001), the Program has an estimated economic internal rate of return of 14.4%, which is high considering the high costs of resettling 38,000 people. Benefits include: (i) increased crop production resulting from the irrigation of 6000 ha in Phases I and II (and ultimately about 45,000 ha when phase III of the Kandadji Program is completed); (ii) reliable water supply for people in the Niger Basin in Niger; (iii) increased availability of water for livestock; (iv) much needed regulation of low river flows (minimum dry season flow of 80 m3/s at the Niger-Nigeria border); (v) opportunities to develop other income generating activities (e.g. fishing, navigation); and (vi) improved reliability of energy through the 130 MW of installed electricity and an average annual energy production of 564.4 GWh. A collateral benefit would be the stimulation of economic and commercial activity, including services in Niger’s parts of the Niger Basin where there is currently very limited economic activity. The following components are suggested for the proposed Project (WRD-SEM APL 2A): (i) institutional strengthening; (ii) financing of Kandadji hydropower plant; and (iii) promoting the growth-pole approach through irrigation development (including rehabilitation) and local community development. These components are described below. Component 1 (Estimated cost US$7 million of which the Bank’s contribution is US$3 million from regional IDA Grant). This component includes support to the NBA including the financing of the NBA project unit responsible for implementing the IDA-funded Program as well as support to implementation of the Water Charter (e.g. key studies such as the strategic plan and update of the organizational audit of NBA). Component 2 (Estimated cost US$190 million of which the Bank’s contribution is US$90million). Under this component, the AFD, AfDB, and the World Bank would jointly finance the Kandadji hydropower plant. The AFD is expected to fund about US$50 million, and the AfDB about US$50 million. The feasibility study of the power plant has been completed and the HCDNV has already prepared draft pre-qualification documents as well as draft bidding document and will submit them shortly to AFD, AfDB, and the World Bank for review. The power plant is expected to have a capacity of 130 MW. This component will also include: (i) costs for engineering supervision, (ii) costs for the Niger Basin independent panel of experts for dam safety and for environmental and social aspects, (iii) critical studies on the energy master plan and linkage with the West African Power Pool; and (iv) implementation Support to the national executing agency (expected to be the HCDNV), including financing of personnel to Public Disclosure Copy strengthen the implementation of the project. The proposed Project will not finance salaries, fees, honoraria or bonuses for civil servants. Component 3 (estimated cost US$126 million of which the Bank’s contribution is US$60 million). This component would consist of 3 sub- components and would focus on irrigation development (sub-components 3.1 and 3.2) and local development (sub-component 3.3). Sub-component 3.1 (estimated cost of US$10 million of which the Bank’s contribution is US$10 million ) would focus on rehabilitation of about 700 ha of irrigated agriculture. The identification of the site to be rehabilitated will be confirmed during appraisal and agreement on the complementary studies to be conducted will be reached; Sub-component 3.2 (estimated cost of US$60 million of which the Bank’s contribution is US$35 million) would focus on investment in a pilot agro- business growth pole linked to the development of approximately 1500 to 2000 ha (downstream of the future reservoir) of diversified commercial crops utilizing small scale irrigation (private-public partnerships would be explored). The complementary studies for the development of the pilot agro-business model and, in particular, how to encourage establishment of enterprises/private business upstream and downstream to support them (e.g. capacity building for entrepreneurs) will be confirmed during appraisal. The design of the pilot agro-business will build on lessons learned in Niger and in the region, including Bank-funded irrigation pilot projects in the country and the Bank-funded Bagre Pole Growth Project. Options for establishing private-public partnerships, as well as for creating water user associations will also be explored. The focus of this sub- component is on piloting agro-business in a relatively small area, with a view to scaling up in the future, given that an additional 40,000 ha of irrigation is planned to be developed under the Kandadji Program; Sub-component 3.3 (estimated cost of US$56 million of which the Bank’s contribution is US$ 15 million) would focus on local development including: (i) reinforcing capacities of partners organization and communities to plan and implement local development and investment plans, (ii) providing financial support to implement investment programs (primarily collective investments in access to basic services and natural resources management (community driven development-based approach), and (iii) setting up of funds to support local initiatives centered on micro-business ownership for women and youth, including funding innovation competitions for the youth. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The site for the Kandadji Dam is near the small town of Kandadji, Niger, about 180 km northwest of the capital Niamey and about 60 km from the Malian Border. The irrigation and the local development will be upstream and downstream of the Kandadji Dam site. E. Borrowers Institutional Capacity for Safeguard Policies The implementation arrangements for the WRD-SEM APL 2 A will be similar to the first phase. The NBA would be responsible for the overall implementation and coordination of WRD-SEM Program on behalf of the nine riparian countries and on behalf of Niger for the WRD-SEM APL 2A. The national implementation agencies have gained considerable experience in implementing the Bank’s safeguards policies for their respective activities under the first phase of the WRD-SEM. The NBA has already created as per the Water Charter, which is effective since July 2010, the Public Disclosure Copy independent panel of experts for dam safety and for environment and social aspects. In Niger, the High Commission for the Development of the Niger Valley (HCDNV), the foreseen national executing agency, has historically had limited on-the-ground experience with large scale technical projects, including managing a large scale resettlement program similar to the one related to the Kandadji program. Also, lack of cross sector coordination and capacity including the capacity of HCDNV to coordinate several independent government agencies and ministries may threaten timely and effective implementation of safeguard policies. As such, the WRD-SEM APL 2A will ensure that adequate support is provided to the HCDNV on safeguard to ensure proper follow up of the recommendations that will be issued from key safeguard documents (ESIA, ESMP, RAP, ESMF, and RPF). F. Environmental and Social Safeguards Specialists on the Team Zarafshan H. Khawaja (AFTCS) Mohamed Arbi Ben-Achour (AFTEG) Robert A. Robelus (AFTWR) Abdoul-Wahab Seyni (AFTCS) Paula F. Lytle (AFTCS) Africa Eshogba Olojoba (AFTEN) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/BP 4.01 Yes OP 4.01 is triggered as the project could have impacts on the environment due to the construction of the Kandadji Dam infrastructure and associated irrigation and other activities. Under the African Development Bank funded project an ESIA was completed in 2006. An Environmental and Social Advisory Panel has been put in place and a first field mission was carried out in September 2011. A cumulative impact assessment has been completed, and submitted to the Bank along with the final ESIA/ESMP which address and include: (i) chance finds procedure for cultural physical heritage, (ii) Local Development Plan; and (iii) impacts on fisheries and fisheries development and management, including aquaculture development. The updated ESIA/ESMP has been approved and disclosed in country on February 20, 2012, and in Infoshop on February 13, 2012. With regard to component 3 of the project, as the location of the activities is yet Public Disclosure Copy to be known, the appropriate safeguard instrument to use is an Environmental and Social Management Framework (ESMF). The update of the ESMF for the WRD-SEM APL has been approved by the Bank and disclosed in country in February 20, 2012, and in Infoshop in February 13, 2012. The Project has adapted this revised ESMF for the WRD-SEM APL 2A and will apply it when implementing component 3. Natural Habitats OP/BP 4.04 Yes OP 4.04 is triggered due to the project location. Per the request of the Bank, the client has provided a biodiversity management plan that has already been approved by ASPEN. The plan is included in the updated ESIA/ESMP and is being disclosed in country and in Infoshop. Forests OP/BP 4.36 Yes Activities under Component 3.3 might cover agro-forestry and support to establish community forest reserves or woodlots in highly degraded areas to enhance their sustainability. These activities might trigger OP 4.36 for which the Borrower will be responsible to ensure forestry and agro-forestry management plans are prepared and implemented. Pest Management OP 4.09 Yes OP 4.09 is triggered as at least 2,000 hectares of new irrigation will be developed. The pest management report is part of the updated ESIA/ESMP approved and disclosed in country on February 20, 2012, and in Infoshop on February 13, 2012. Physical Cultural Resources OP/BP 4.11 Yes OP 4.11 is triggered due to potential impacts on PCR associated with the Kandadji dam infrastructure that is being supported through the project. Compliance is handled through the updated ESIA/ ESMP, approved by the Bank and disclosed in country on February 20, 2012, and in Infoshop on February 13, 2012. Indigenous Peoples OP/BP 4.10 No OP 4.10 is not triggered as there are no known indigenous peoples in the project area of influence. Involuntary Resettlement OP/BP 4.12 Yes OP 4.12 is triggered as construction of the Kandadji Dam involves a significant resettlement. Under the African Development Bank funded project a RAP was completed in 2006. The update of this RAP (for the first wave of displacement), approved by the and disclosed in country on February 20, 2012, and in Infoshop on February Public Disclosure Copy 13, 2012. Survey data was updated in 2009 from the 2006 RAP, and a cut-off date was publicized for the first wave of people to be displaced due to the construction which will affect 774 households (that is 5,140 people). The lessons learned from this first wave of displacement will be incorporated into the resettlement plans for the second wave (due to impoundment of the dam planned around 2016) expected to affect a population of approximately 32,000 people. The RAPs for the second wave is under preparation and currently the update of the database for this second wave is ongoing and expected to be finalized by May 2012. With regard to component 3 of the project, as the location and specific community driven development (CDD) activities are not yet known, the appropriate safeguard instrument is a Resettlement Policy Framework (RPF). The update of the RPF for the WRD-SEM APL 1 is on-going and has been submitted for the Bank’s review. The Project has adapted this revised RPF for the WRD-SEM APL 2A and will apply when implementing component 3. If the RPF identified potential adverse impact associated with the CDD activities implementation, the mitigation measures would be proposed throughout RAPs, which will be prepared, published, and disclosed within the country and the Bank (Infoshop) prior to the commencement of any civil works. Safety of Dams OP/BP 4.37 Yes OP 4.37 is triggered as the project is supporting dam infrastructure in the Niger basin. A Panel of Experts on Dam Safety (PEDS) is already in place, and will be further supported through Component 2 of the project. PEDS started its review of Kandadji Dam design in September 2011 and the review is expected to be completed in March 2012. Per OP 4.37 requirements, the developer is expected to integrate the observations and the relevant recommendations of the PEDS in the construction design and the Project’s dam safety plans. Dam safety plans: Instrumentation Plan, Operations and Maintenance Plan, and a draft Emergency Preparedness Plan have been prepared and will be reviewed by the PEDS prior to project appraisal. Projects on International Waterways OP/BP Yes OP 7.50 is triggered because of impacts of dam infrastructure on the Niger 7.50 river, whose basin includes nine riparian countries – Benin, Burkina Faso, Cameroon, Chad, Cote d’Ivoire, Guinea, Mali, Niger and Nigeria. Infrastructure development in the Niger River, including under the “Strategic Development Public Disclosure Copy Action Plan� (SDAP) adopted by the riparian countries in 2007, will have cumulative impacts in the Niger basin. The Kandadji Dam infrastructure plays a critical role in the basin’s development program. In compliance with OP 7.50 requirements, riparian notification for the project was issued on November 16, 2011 by the NBA to all the countries and the deadline for response is January 10, 2012. A memo is under preparation to appraise management on the final outcomes of the notification process. Projects in Disputed Areas OP/BP 7.60 No OP 7.60 is not triggered as there are no known disputes over the project area. III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 20-Jun-2012 B. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing1 should be specified in the PAD-stage ISDS: A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared: April 17, 2012 B. For projects that will not require a QER, the target date for preparing the PAD-stage ISDS: N/A C. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing should be specified in the PAD-stage ISDS. The required safeguard instruments for the Kandadji project are: (i) ESIA/ESMP, (ii) RAPs, (iii) ESMF, (iv) RPF, (v) Instrumentation Plan, (vi) Operations and Maintenance Plan; and (vi) an Emergency Preparedness Plan. All of these studies have commenced, and final reports are expected to be completed and disclosed (both in-country and at the World Bank Info Shop) by February 20, 2012 and before appraisal planned to take place in June 2012. IV. APPROVALS Task Team Leader: Name: Amal Talbi Approved By: Regional Safeguards Coordinator: Name: Alexandra C. Bezeredi (RSA) Date: 10-Apr-2012 Public Disclosure Copy Sector Manager: Name: Jonathan S. Kamkwalala (SM) Date: 11-Apr-2012 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons.