The World Bank LISUNGI Safety Nets System Project II (P166143) Combined Project Information Documents / Integrated Safeguards Datasheet (PID/ISDS) Appraisal Stage | Date Prepared/Updated: 27-Nov-2018 | Report No: PIDISDSA24125 Feb 27, 2018 Page 1 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) Congo, Republic of P166143 LISUNGI Safety Nets P145263 System Project II Parent Project Name Region Estimated Appraisal Date Estimated Board Date CG Rep. LISUNGI Safety Nets AFRICA 26-Nov-2018 06-Feb-2019 System Project Practice Area (Lead) Financing Instrument Borrower(s) Implementing Agency Social Protection & Labor Investment Project Republic of Congo Ministry of Social Affairs, Financing UGP LISUNGI Proposed Development Objective(s) Parent "Establish the key building blocks of a national safety net program and pilot a cash transfer program to improve access to health and education services of poorest households in participating areas." Components Establishment of key building blocks of a national safety net program and enhancement of local capacities Development and implementation of cash transfer programs Project management, Monitoring and Evaluation (M&E) PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 22.00 Total Financing 22.00 of which IBRD/IDA 22.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 22.00 IDA Credit 12.83 Feb 27, 2018 Page 2 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) IDA Grant 9.17 Environmental Assessment Category B-Partial Assessment Decision The review did authorize the team to appraise and negotiate Other Decision (as needed) B. Introduction and Context Since 2015, the Republic of Congo has been experiencing an economic contraction fueled by low oil prices. The oil price decline lowered the growth rate to 2.3 percent in 2015 and led to a 2.1 percent contraction in 2016. Fiscal and current account balances also deteriorated during the same period reflecting increased government spending and lower oil receipts with twin deficit of more than 10 percent. After enjoying year-on-year GDP growth from 2010 – 2013, the country now faces a challenging economic environment that has exposed its fragile economy and exacerbated poor performance in human development sectors. Following the onset of this economic contraction, the absolute poverty rate is forecast to rise and the human development sector is not well equipped to meet the challenge. The country’s, still high, absolute poverty rate decline until was largely driven by oil revenues, political stability and the government’s investment in infrastructure. With the poverty rate declining, the country had not actively pursued and promoted inclusive social policies due to weak public institutions and limited implementation capacity. As such, there were limited opportunities for the poor and vulnerable to benefit from the country’s economic growth. Moreover, low, inefficient and inequitable resource allocation in social the sectors has resulted in limited physical and economic access to quality services. In addition, with rapid urbanization, high youth unemployment, fast growing population and inequality have translated into complex and multifaceted vulnerabilities and threats to the country’s development aspirations. Refugee population As a number of other countries in the region, the Republic of Congo faces challenges due to the displacement of population from neighboring countries. Per recent statistics, Congo hosted about 47,000 refugees and 7,400 asylum-seekers as of end-2016, as a result of a long history of receiving refugees. Today, the refugee population accounts for over one percent of its overall population. More than half of refugees are below the age of 18. Both refugees and Congolese population living in host communities have significant unmet needs in terms of nutrition and access to basic services, Feb 27, 2018 Page 3 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) such as health, education, water, sanitation; as do the current poor and vulnerable population supported by the Parent project. The situation remains complex, and there are in fact three distinct refugee situations in the Republic of Congo – with marked differences in the challenges faced by refugee population and Congolese living in host communities: ➢ As of December 31st, 2017, 32,223 refugees and asylum-seekers are from the Central African Republic (CAR), most of whom arrived in 2012-2014 and have no clear prospect of return in the short- to medium-term. Almost 65 percent of Central African refugees are in the border region of Likouala, with 40 percent living in host communities and 25 percent sheltered in two camps. The region is largely isolated from the rest of the country, and, even prior to the crisis, human development indicators were very low, poverty levels deep, and access to basic services limited. The influx of refugees has exacerbated these pre- existing issues. The other 30 percent of CAR refugees live in more urban areas in Brazzaville, Pointe Noire, and Sangha. Given the unstable situation in CAR, the Republic of Congo could face further refugee inflows from its neighbor soon. ➢ More than 15,000 refugees are from the Democratic Republic of Congo (DRC). They are the remnants of an earlier, much larger group of DRC refugees – about 120,000 of whom have been repatriated between 2012 and 2014– and have unclear prospects of return. Most DRC refugees live in the Likouala region. Over 80 percent of them are women and children. Assistance by United Nations High Commissioner for Refugees (UNHCR) and the World Food Programme (WFP) has been largely phased out due to a lack of resources. Considering the current situation in DRC, the number of refugees could increase, possibly significantly, in the period to come. ➢ More than 9,000 refugees are from Rwanda. Many arrived in 1997 from the DRC, where they were living in the aftermath of the 1994 genocide, though more than half are the children of these refugees and were born in the Republic of Congo. About 45 percent of Rwandan refugees live in Brazzaville, where living conditions tend to be better, although refugees often live in the poorest neighborhoods. Other Rwandan refugees are spread across the regions of Sangha, Cuvette, Plateaux, and Likouala, where they live on subsistence agriculture. Upon the recommendation of UNHCR, the Government has invoked the “cessation clause�, which would result in most Rwandans no longer being recognized as refugees after December 31, 2017. The specific impact of this on the status of refugees has yet to be clarified since we do not know if they will gain “citizenship� or long-term permission to live in the country. The refugee crisis primarily affects the poorest areas of the country including Likouala and some of the poorest areas in Brazzaville and Pointe Noire, exacerbating pre-existing issues. In Likouala, most refugees live in the remote and poor border part of the region, in the extreme Northeast of the country. The region is largely isolated from the rest of the country (the main access is via air and waterways) and is home to a sizable indigenous population. Even prior to the crisis, human Feb 27, 2018 Page 4 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) development indicators were very low, poverty levels deep, and access to basic services limited. Today, the refugee population accounts for 17 percent of the Likouala population. This inflow is putting serious pressure on service delivery as well as on resources such as water, wood, and arable land. There are very few employment opportunities beyond subsistence agriculture (and one wood mill) for both the displaced and the Host Communities. Despite competition over access to services and resources, the relationship between Refugees and Host Communities is relatively good. Ethnicity and language do not pose a barrier. Livelihood strategies, mainly based on agriculture and fishery, are similar across the different communities. In Brazzaville, a relatively large number of refugees live in the poorest neighborhoods, including the refugee site of Kintélé on the outskirts of town. Relationships with the host community are more difficult than in rural settings, mainly due to the economic contraction and limited job opportunities for the population in general. Sectoral context International agencies and the government acknowledge the limitations in protecting those refugees as well as the overall living conditions at the host communities. On the one hand, UNHCR and WFP have traditionally provided the bulk of assistance to refugees, IDPs, and, to a lesser extent, host communities in the Republic of Congo. Such assistance has been delivered in-kind, with limited needs-based targeting, and has been accompanied by several programs aimed at providing basic social services and livelihoods. However, this assistance has focused on short-term emergency response due to budget limitations as there is no multi-year source of funding to enable long-term planning. On the other hand, the government has launched the Lisungi program as a pilot in selected areas that aims at creating the social safety nets system that would help provision of long term support to Congolese population as well as of refugees living in the country. This program is supported by the World Bank and AFD. Due to the economic contraction, the Lisungi program is not yet at scale but its foundation has the potential to support the government to improve living conditions of its population and promote social inclusion. As part of its ongoing dialogue with the World Bank and UN agencies, the Letter of Development Policy expressed a series of commitments to improve the socioeconomic integration of refugees and conditions facing host communities. Due to its far-reaching potential in the regard of social inclusion, the Lisungi program was identified as platform to support the Government’s commitments on addressing the refugee challenge as expressed in the Letter of Development Policy. These commitments include pledged improvements to the legal, institutional, and organizational framework for managing refugees; enhanced economic opportunities for refugees; and the creation of new institutions to advance reforms: These commitments can be grouped into three main areas: ➢ Legal changes. The Government has pledged to adopt a set of laws and implementing decrees related to the right of asylum and the status of refugees. Besides, it has pledged to reduce the time taken to process asylum applications. Taken together, it is hoped that these proposed measures will result in quicker, more efficient access to the needed services for asylum applicants. Feb 27, 2018 Page 5 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) ➢ Socioeconomic inclusion. The authorities have committed to harmonize access to basic social services for all people living in refugee reception areas and to make all refugees eligible for social safety nets (SSNs) for the most vulnerable. The Government has also stated its ambition to launch a concerted development strategy for the impoverished Likouala region, which is the main recipient of refugees. Concretely, authorities have pledged to include refugees and host communities in Likouala in SSNs that target the country’s most vulnerable people. ➢ Institutional reforms. The Government has proposed the creation of a Nationally Standardized Emergency Management System to coordinate decision making among different ministries and territorial officials within the context of a humanitarian shock, including shocks related to an influx of refugees. Further, the Government has stated its plans to establish new institutions to contribute to the management of forced displacement. The modalities and specific objectives of such institutions are not delineated in the Government’s letter. The proposed AF2 to the Lisungi program directly contributes to the second group of commitments on socio-economic inclusion of Refugees and Host Communities, including the indigenous population, into the national social protection system, allowing more sustained policy dialogue on related issues on this matter. Through a close collaboration with UNHCR, AFD, UNICEF and WFP not only in terms of coordination on the ground but also on policy matters, will be important to progress towards the realization of government commitments. Lisungi program In 2014, the Lisungi Safety Nets System Project, in the amount of US$17.0 million, was approved by the World Bank with two sources of financing: (a) an IDA Credit of US$2.0 million (SDR 1.4 million) and (b) Government financing of about US$15.0 million as presented in the Project Appraisal Document of the parent project. The project was designed to provide permanent and predictable social safety nets to (i) 5,000 households that include pregnant women and/or children aged 0 to 14 years old and (ii) 1,000 people aged 60 years or older. In 2016, the AFD provided financing of eight million Euros (US$ 9.5 million) for an extension of cash transfers to other areas, and UNICEF has made available CFA 83 million (US$150,000) to strengthen the delivery of accompanying measures to families with children, to improve communication to the households and to reinforce the capacity of the social workers working at the local Social Assistance Center (Circumscription d’Action Sociale - CAS) office. Due to the national economic contraction in 2015 associated with the worldwide drop in oil prices, and consequently to alleviate the burden of counterpart funds on the Government, an Additional Financing (AF1) of US$10 million became effective on February 1, 2018, to cover the implementation gaps, changing the ratio of IDA to Government financing from 2:15 to 4:5. The Project Development Objective reads as follows: “to strengthen the social safety nets system and its programs aimed at improving both access to health and education services and productivity Feb 27, 2018 Page 6 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) among poor and vulnerable households in participating areas�. Project implementation has been under way for almost 4 years, and the World Bank has rated both the achievement of the PDO and implementation progress as Moderately Satisfactory. C. Proposed Development Objective(s) Original PDO "Establish the key building blocks of a national safety net program and pilot a cash transfer program to improve access to health and education services of poorest households in participating areas." Current PDO "Strengthen the social safety nets system and its programs aimed at improving both access to health and education services and productivity among poor and vulnerable households in participating areas." Key Results Scaling up Social Registry coverage by adding 8,000 households comprising Refugees and Host Communities. Scaling up Conditional Cash Transfers by adding 2,000 households comprising Refugees and 2,000 households comprising population in Host Communities. Scaling up Income Generating Activities by adding 4,000 households comprising Refugees and 4,000 households comprising population in Host Communities. D. Project Description The AF2 seeks to contribute to the Lisungi program by making it more inclusive with the explicit emphasis on the refugee population to guarantee that they are not discriminated against participating in the social programs available in the country. This AF2 aims at improving the socioeconomic inclusion of refugees and socio-economic conditions of host communities. More specifically, for our population of interest, that is, both Refugees and Host Communities, the AF will: • Increase the coverage of households, henceforth AF2 population in the RSU in the departments of Brazzaville, Pointe-Noire, and, mainly, Likouala; • Increase the access of the AF2 population to cash transfers to reduce food insecurity and increase their productivity; • Increase the utilization of health and education services among children and pregnant women of cash transfers beneficiaries in Likouala and in other areas of Lisungi where services are already available. • Support the development of local capacities and promote accompanying measures and activities in collaboration with implementing partners; and Feb 27, 2018 Page 7 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) • Support the Government to apply the engagements presented in the Letter of Development Policy. These objectives are well aligned with the IDA 18 Refugee Sub-Window for refugees and host communities to help enhance the management of refugee situations that aims to: (i) mitigate the shocks caused by an influx of refugees and create social and economic development opportunities for refugees and host communities; (ii) facilitate sustainable solutions to protracted refugee situations, including through the sustainable socioeconomic inclusion of refugees in the host country and/or their return to their country of origin; and (iii) strengthen preparedness for increased or potential new refugee flows. The AF2 contribution to the project is summarized as follows: ➢ Component 1: Establishment of key building blocks of a national safety net program and enhancement of local capacities (US$ 2 million) This component will continue to support the development of the RSU and related information systems, including its expansion to Likouala. This component will support scaling up the coverage of the RSU to add about 8,000 households in the system according to the criteria specified in Component 2. In addition, the component will finance the development of the accompanying measures to be provided by social workers in Brazzaville and Pointe-Noire, and by NGOs in Likouala, and the hiring of implementing agencies that also support Component 2 implementation. Those agencies are to be selected competitively following the procurement guidelines and must follow the rules and procedures for subcomponent implementation as described in the Project Implementation Manual (PIM). The rationale for having the accompanying measures is to maximize the benefits of cash transfers in Component 2. These accompanying measures give households information and incentives to promote the human capital of their children and to do the right investments with the goal of reducing both the current and the intergenerational transmission of poverty. These accompanying measures are provided at the commune/village level. Several accompanying measures can be envisaged to be added to the current UNICEF Communication for Development collaboration with the project. The proposed sessions include hygiene practices and information related to early childhood development, financial literacy training, nutrition, family planning, and investment and savings planning. Targeting. Given the complexity of the context for the selection of potential beneficiaries in the project such as remoteness of the region of Likouala and particularities of the refugee, host communities and indigenous population, UNHCR, Renapac and MASAHs social workers will be an integral part of the process. For the refugees, UNHCR maintain a database of Refugees grouping them into 4 groups, ranging from “most in need� to “better off�. Those in the category “most in need� are priority for the intervention and will be invited to enroll in the project for participating Feb 27, 2018 Page 8 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) in component 2 activities. For the indigenous population, MASAHS social workers and Renapac have been working closely with the indigenous population and they will support pre-identification for reaching the most in need to be part of the project for participating in component 2 activities. For the bantus, MASAHS social workers will work with committees to identify those that could benefit from the program following the regular Lisungi process described in the current implementation manual. Progressively, once beneficiaries selection for component 2 is completed, other UNHCR database households and other indigenous population are expected to be part of the Social Registry. ➢ Component 2: Strengthening the demand-side of services through cash transfer program (US$ 16.3 million) Subcomponent 2A: Conditional Cash Transfers to Poor Households (US$6.5 M) This subcomponent will provide timely, predictable, and regular transfers to eligible households. Regular transfers ensure the achievement of program objectives and smooth and increased household consumption and protect household assets. Predictable transfers allow households to maximize the use of their money and help them make livelihood investments because the timeliness and predictability of transfers enables households to plan and invest in the future, particularly in the human capital of their children. Eligibility criteria. The cash transfer will be delivered following the same approach used in the parent project. Preidentified households by CCC will have information collected and updated to the RSU. In Brazzaville and Pointe-Noire, a needs and conditions assessment will be done based on socioeconomic characteristics using the full RSU questionnaire, and households will be classified according to the poverty levels. Those households classified as extreme poor are eligible for the program. The eligible households’ list is then validated by the CCC and CLSs before program enrollment. In Likouala, given the high levels of poverty, the needs and conditions assessment will be done based on the short RSU questionnaire (fiche signaletique). Then, the full RSU questionnaire will be collected once all selected households are enrolled in the project. Benefit level. The minimum benefit level remains at CFAF 10,000 per month. A variable child benefit is set at CFAF 5,000 per child per month. A variable elderly benefit is set at CFAF 10,000 per elderly per month. The maximum number of variable child benefits is CFAF 15,000, which represents three children. Due to the multigenerational households, the maximum transfer per household is CFAF 45,000 that represents a household with three children and two elders. Number of beneficiaries. The project will benefit 2,000 refugee households and 2,000 households living in host communities. For both groups, the partition of the population among the three departments will be proportional to the refugees’ population in each department, that is, 66 percent in Likouala, 29 percent in Brazzaville, and 5 percent in Pointe-Noire. The correct number of indigenous people will be provided once the CAS social mapping is concluded. As in the parent project, women are considered the main recipients of the cash transfer and accredited payment agencies will make payments to beneficiaries under this subcomponent. Feb 27, 2018 Page 9 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) However, in areas of difficult access or in the Likouala where the financial market remains limited, other ways of making the transfers may be explored, such as direct payments made through NGOs or UN agencies such as UNHCR, UNICEF, and WFP. Subcomponent 2B: Income-Generating Activities (US$3.6 M) This subcomponent will provide IGAs for selected households. It will benefit from the accompanying measures offered by implementing partners to support the preparation of business plan; to provide information on financial education, savings, and credit; and to support the implementation of the activities. The proposed IGAs will be small-scale (undertaken at the household level) and could include (a) The purchase of inputs for gardens or subsistence farming (only in degraded areas to be consistent with REDD+ standards and other project such as Northern Congo Agroforestry Project – P166189) to improve dietary diversity of households; (b) The establishment of community savings groups; and (c) The support to adopt alternative livelihoods such as the purchase of small equipment, for example, a sewing machine or the means to deliver goods to market. Most households that demand support for subsistence activities will be working on their own small plot or at development partners’ plots such as those provided by UNHCR in selected areas to increase subsistence activities to improve dietary diversity and food security, while receiving one- to-one accompanying measures on how to run such activities. Although the project will to the extent possible limit the acquisition of land leading to involuntary resettlement, and given the limited availability of arable land in the area of implementation, some agricultural activities may require some land transactions leading to resettlement on a small scale. To manage of mitigate these risks, the project has prepared and disclosed a Resettlement Policy Framework (RPF) to manage risks related to resettlement. The project will also prepare an operation manual on overall environmental and social safeguards procedures, including a specific section for activities requiring land acquisition or inducing involuntary resettlement. Activities leading to resettlement will have specific criteria and will be avoided to extent possible. Only when unavoidable will the project prepare a Resettlement Action Plan (RAP) and proceed to involuntary resettlement. The project will not procure any pesticides, but the project will carry out extension services toward project beneficiaries on the proper use of pesticides and other agro-chemicals although the project does not finance any of these products. Therefore, IGA beneficiaries will receive guidance on how to undertake their proposed activities in an environmentally friendly, sustainable, and successful manner. The subcomponent can offer small materials or agricultural input as community goods in selected areas. The participation of women in the subcomponent will be strongly encouraged, since women are traditionally involved in small-scale IGA and are economically marginalized. Feb 27, 2018 Page 10 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) Eligibility criteria. The IGA will be delivered following the same approach used in the parent project and in the subcomponent 2a. Based on socioeconomic characteristics poverty classification, households classified as extreme poor or poor are eligible for the project. Benefit level. The package of services to be provided to selected beneficiaries is the transfer of CFAF 200,000 (US$400) in three installments (50 percent, 25 percent, and 25 percent)—according to the specifications included in the business plan and the PIM. The first transfer of 50 percent is provided upon receipt of a validated business plan to allow for up-front investments; the second transfer of 25 percent is provided midway through the implementation of the activities; and the third transfer of 25 percent is provided six or nine months from the first payment. In addition, the beneficiaries will receive (a) Training on the preparation of an action plan and other technical skills; (b) Communication and mentoring of beneficiaries to support implementation and boost their self-confidence and social capital; and (c) Financial literacy training to improve their income management and to encourage them to save in case of shocks. Number of beneficiaries. The project will benefit 4,000 refugee households and 4,000 households living in host communities. For both groups, the partition of the population among the three departments will be proportional to the refugees’ population in each department, that is, 66 percent in Likouala, 29 percent in Brazzaville, and 5 percent in Pointe-Noire. The correct number of indigenous people will be provided once the CAS social mapping is concluded, and some overlap with Subcomponent 2A beneficiaries is envisaged. Therefore, the AF2 is financing the conditional cash transfers to these new 8,000 households in the selected areas, but this component is being implemented since the AF1 in other areas of the country. The project will not finance the purchase of pesticides and will provide guidance to beneficiaries on how to avoid the use of pesticides, including a do-not-use list. The PIM will further provide a checklist for the regional selection committees to capture potential social and environmental risks of subprojects. As in the parent project, accredited payment agencies will make payments to the beneficiaries under this subcomponent. However, in areas of difficult access or in the north where the market remains limited, other ways of making the transfers may be explored, such as vouchers to be ‘cashed’ at local payment points or direct payments made through NGOs or UN agencies such as UNHCR, UNICEF, and WFP. It is expected that any environmental footprint will be moderate and have well-defined mitigation measures. The project activities are also expected to have positive impacts to increase subsistence activities and household productivity, while promoting knowledge activities to inform the Feb 27, 2018 Page 11 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) population on how to benefit better from the investments. The project will put in place guidelines and procedures in order to avoid potential negative environmental or social impacts. These include: 1. An Environmental and Social Management Framework (ESMF) was prepared and disclosed by the project team and the Framework ESMP will be included in the PIM. 2. The PIM will ensure that there is a chapter/section on the management of safeguard measures and a negative list of economic activities which shall be excluded from funding. Excluded activities include those that require the acquisition of land, such as construction leading to involuntary resettlement of people and/or loss of access to assets, revenues and/or means of livelihoods, and/or restriction of access to legally designated parks. 3. The project will not finance the purchase of pesticides and will provide guidance to beneficiaries on how to avoid the use of pesticides. To ensure that environmentally friendly methods for pest control are applied (e.g. biological control, cultural practices, etc.) provisions for good agricultural practices have been included in the ESMF. Morover, synergies with Northern Congo Agroforestry project will take place and REDD+ standards will be respected. 4. The PIM will further provide a checklist for the regional selection committees to capture potential social and environmental risks of sub-projects. Implementing agencies to support subcomponent implementation can be competitively selected by the Lisungi following the procurement guidelines and must follow the rules and procedures for sub-component implementation as described in the PIM. United Nations agencies as UNHCR, UNICEF and WFP can be hired to support this subcomponent implementation and to carry out the training/coaching of beneficiaries. This subcomponent will be implemented Brazzaville, Pointe Noire and Likouala. Subcomponent 2C: Health services (US$3.1 million). In the three districts of the department of Likouala (Impfondo, Bétou and Enyellé) the Project will finance the expansion of the fee-exemption health services package for pre-defined poor and vulnerable populations through Perfomace Based Finaincing (PBF) at an estimated cost of $450,000 per year. For this purpose, the Project will collaborate with the World Bank-financed Projet de Développement du Système de la Santé project to make sure that all Lisungi beneficiaries can use health facilities and that all population in the area can have access to a quality health service. The estimated population to be covered by this subcomponent is of 60,000, of those, 10-12,000 are indigenous people. In addition, the partnership will guarantee that all direct cash transfer Feb 27, 2018 Page 12 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) Lisungi beneficiaries and all indigenous population would have free access to health services as per the Congo- PBF approach of offering free access to quality services at the point of use by defined populations. Details on the package of services to be provided will be detailed in the updated PDSS implementation manual. This subcomponent will be implemented in Likouala. Subcomponent 2D: Education services (US$3.1 million). Through this AF, the Lisungi implementing unit will also work with the implementing units of the World Bank-financed Education Sector Support Project (ESSP), to improve access of target beneficiaries to basic education services and to guarantee that schools are functional in the three districts of Likouala. This AF2 will provide financial support to (a) cover costs of school inputs (e.g. uniforms, notebooks), which are to be offered directly through Lisungi; and (b) teachers and administration, as well running costs, to guarantee that schools are functionals and minority population have access to it through the collaboration with the ESSP project. In addition, it can cover some running costs of ESPP administration. This subcomponent will be implemented in Likouala. ➢ Component 3: Project management, Monitoring and Evaluation (M&E) (US$3.7 million) This component will support project management. It will ensure that the Unité de Gestion du Projet (UGP) is operational and that it successfully and efficiently implements the Project in conformity with the Financing Agreement, project document and the PIM. This component will finance: (i) UGP staff (non-civil servant) salaries including operational costs at the regional levels; (ii) equipment and operating costs for UGP directly linked to the daily management of the project (office space, utilities and supplies, bank charges, communications, vehicle operation, maintenance and insurance, building and equipment maintenance costs, travel and supervision costs, etc.); (iii) regular internal audits and annual external audits (as per Bank legal requirements audits of financial and procurement aspects); and (iv) training of personnel of UGP (at both central and regional levels). Within the framework of the monitoring cycle, a mid-term review will involve project’s stakeholders and civil society in the review of project performance, intermediary results, and outcomes. The progress and impact of the project will be measured using the data collected at the mid-term review and at the end of the project. In addition, this component will finance the revision of the current social accountability and citizens’ engagement approach to mitigate risks in the project associated with the project implementation, to promote nondiscrimination against any population group, and to address prevalence of Sexual and Gender Based Violence (SGBV) that persists within refugee communities, as well as across the country. This component will also revise Information Campaign strategy that aims to make the overall program more transparent for the population by clarifying the overall implementation process, roles and responsibilities. Feb 27, 2018 Page 13 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) Monitoring and Evaluation (M&E) remains a key subcomponent in the project because the project must be analyzed regularly to inform the Government, the World Bank and other development partners about its results and impacts. The designed system will transform data collection, processing and information management to facilitate the operation of project components through the entire implementation period, and across all levels (UGP and Regional), to follow the program’s progress and measure its results. More specifically the Monitoring and Evaluation sub- component of the project will finance the following: (i) annual process evaluation; (ii) annual spot checks for new activities under AF2 (including beneficiaries’ surveys and qualitative evaluations) at the village level; and (iii) annual independent audits of the system. E. Implementation Institutional and Implementation Arrangements The implementation arrangements of the project remain the same as in the parent project but with few adjustments. The Ministry of Social Affairs and Humanitarian Action (Ministère des Affaires Sociales de l'Action Humanitaire et de la Solidarité, MASAHS) will continue to have the overall responsibility for the implementation of the project and the UGP remains the implementation unit with the mandate to implement the project. However, the current Inter-Sectoral Steering Committee (Comité d’Orientation Stratégique, COS) that oversees the project’s implementation will be expanded to incorporate other relevant ministries such as the Ministries of Interior and Decentralization; Foreign Affairs and Cooperation; Forest Economy; Justice, Human Rights, and Promotion of the Indigenous Population; Tourism and Environment; and Land. The Lisungi project (a) has a fully staffed implementation unit; (b) is effectively providing capacity building for staff of the implementation unit and the MASAHS; and (c) has developed a monitoring and evaluation strategy to track the project’s operational, financial, and procurement activities. This AF will support increasing implementation capacity by financing: (i) UGP staff (non-civil servant) salaries including operational costs at the regional levels; (ii) equipment and operating costs for UGP directly linked to the daily management of the project (office space, utilities and supplies, bank charges, communications, vehicle operation, maintenance and insurance, building and equipment maintenance costs, travel and supervision costs, etc.); (iii) regular internal audits and annual external audits (as per Bank legal requirements audits of financial and procurement aspects); and (iv) training of personnel of UGP (at both central and regional levels). Within the framework of the monitoring cycle, a mid-term review will involve project’s stakeholders and civil society in the review of project performance, intermediary results, and outcomes. In addition, this component will finance the revision of the current social accountability and citizens’ engagement approach in place for the parent project to mitig ate any other risks in the project associated with the project implementation and to promote nondiscrimination against any particular population group. Other stakeholders as UNHCR, UNICEF and WFP as well as civil society can also be partners for the execution and monitoring of the project in selected areas. . Feb 27, 2018 Page 14 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) F. Project location and Salient physical characteristics relevant to the safeguard analysis (if known) The project will be extended to the department of Likouala where there is a presence of Indigenous Peoples. Moreover, due to the characteristic of the department, attention will be needed to avoid any deforestation impact. G. Environmental and Social Safeguards Specialists on the Team Grace Muhimpundu, Social Specialist Aurelie Marie Simone Monique Rossignol, Environmental Specialist SAFEGUARD POLICIES THAT MIGHT APPLY SAFEGUARD _TBL Safeguard Policies Triggered? Explanation (Optional) Project activities (especially IGA) are likely to have environmental and social impacts. An Environmental and Social Management Framework (ESMF) has been developped to provide guidance on managing environmental and social risks. It has been prepared, reviewed, consulted upon, and disclosed within the Environmental Assessment OP/BP 4.01 Yes country and in the World Bank External Website on 19 September 2018. Moreover, regarding the implementation of activities under component 2.C. (health services) the project will strictly follow the National Watse Management plan updated by the HSSP project. Performance Standards for Private Sector No N.A Activities OP/BP 4.03 The income generating activities and especially the ones including the purchase of inputs for gardens or Natural Habitats OP/BP 4.04 No subsistence farming will only take place out of of natural habitats (on degraded land and at small plots scales). The project is envisaging to be extended to Likouala department - a high forested department (natural Forests OP/BP 4.36 Yes forest up 90%). Potential impacts and proposed enhancement/mitigation measures have been included in the ESMF. Feb 27, 2018 Page 15 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) The proposed income generating activities could include the purchase of inputs for gardens or subsistence farming to improve dietary diversity of Pest Management OP 4.09 Yes households. These activities might lead beneficiaries to use pesticides, even not financed by the project. Provisions for agricultural good practices have been included in the ESMF. The project triggers OP 4.11 (Physical and Cultural Resources) to ensure that should the project be located in, or in vicinity of, physical cultural Physical Cultural Resources OP/BP 4.11 Yes resources, notably sacred sites of local communities (numerous in Likouala department), chance finds procedures along with guidance on sensitization have been included in the ESMF. The project will expand its activities into the Likouala where there is a presence groups identified as IPs as per OP 4.10 definition. The project has prepared an Indigenous Peoples Policy Framework (IPPF) to Indigenous Peoples OP/BP 4.10 Yes properly capture and include IPs as beneficiaries of the Lisungi activities. The IPPF has been finalized and published in country and on the World Bank external website on 19 September 2018. The policy is triggered for activities that may induce land acquisition under component 2 (AGR and cash for works). Analysis suggests that arable land is a scarce resource in certain areas where the project will be implemented, especially in the heavily populated area of Likouala where there is a high Involuntary Resettlement OP/BP 4.12 Yes density of refugee population and local communities, including Indigenous Peoples. The project prepared a Resettlement Policy Framework (RPF) to mitigate any negative impacts and was publicly disclosed and on the World Bank external website on September 19, 2018. The project activities are localized and will not have Safety of Dams OP/BP 4.37 No any impacts on dams. Projects on International Waterways The project activities are localized and will not have No OP/BP 7.50 any impacts on international waters. The project activities will not be in any disputed Projects in Disputed Areas OP/BP 7.60 No areas. Feb 27, 2018 Page 16 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT OPS_SAFEGUARD_SUMMARY_TBL A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: Project impacts are not expected to be large scale, significant or irreversible; potentially adverse impacts will be minor and site specific. No civil works will be undertaken. The project will finance some income generation activities which may require land acquisition leading to physical and economic displacement. The project will to the extent possible avoid financing activities requiring land acquisition, except those that are deemed to be acceptable (within the activities that are approved by the project). All land acquisition and resettlement will be conducted according to the principles set forth in the Resettlement Policy Framework (RPF). Once the specific activities requiring land acquisition are identified, the project will prepare a Resettlement Action Plan (RAP) which follows the RPF, and ensures that proper consultations are conducted with all project affected persons and that the procedures is compliant with the principles of the RPF. Regarding generating incomes activities (especially the ones related to agriculture) in forest zones, existing REDD+ standards will be applied. Indigenous Peoples are present in the areas of intervention (Likouala). Based the Indigenous Peoples Policy Framework (IPPF) that was prepared and disclosed in country, the IP community is often very limited in their participation in planning and decision making at the Departmental level. In addition, the civil society (NGOs and non- profits for IPs) are not fully active in some of the remote areas where IPs are present for advocacy services. Moreover, the Indigenous communities have little to no access to legal services (lawyers, courts/tribunals, etc) and makes it nearly impossible for them to assert their rights before the departmental legal authorities; with few of the IPs knowing their rights, nor the main existing protection instruments and mechanisms to protect themselves. Overall this means that the level of participation of IPs is limited and the risk of exclusion of IPs is high. The project, through the planned activities in the IPPF, will ensure that the IP groups not only are given agency, duly consulted through a process of free prior and informed consultation, but also benefit from project activities. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: The project activities and cash transfer component are not expected to have adverse social or environmental impact. The cash transfer component is designed and being implemented as part of the parent project. Expansion to new area follows similar approach of parent project so that the targeting approach does not discriminate against any population, a grievance and complaints mechanism will be put in place, and a transparent process for selecting beneficiaries with support of community committees to mitigate any social risk. The project will ensure that IPs are included and receive culturally appropriate benefits from the project activities. During the preparation of the IPPF, free, prior and informed consultations were conducted with the IP groups living or having an attachment to the land in the Likouala for the new project, so as to ensure that their concerns, challenges and needs (which align with the project) are addressed. The project will (once the specific implementation sites are decided) prepare site specific and activity specific Indigenous Peoples Plans (IPP).. The project will also ensure necessary measures are taken to avoid garden size extension at the expense of forests and that good practices are implemented. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Feb 27, 2018 Page 17 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) 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. Capacity building and training in environmental and social management will be provided under component 3 of the proposed project A Social Assessment will be prepared to examine vulnerability and inclusion issues in the national program; social assessments have also been for communities in the project area. One social and one environmental specialist will be recruited to ensure safeguards measures are implemented and monitor the compliance with provisions included in the ESMF and IPPF. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Minister of Social Affairs, the World Bank, development partners as UNHCR, UNICEF and WFP, civil society, and mainly local communities are the key stakeholders. Safeguards implementation and monitoring reports will be produced on a periodic basis by the environmental and social specialists in the PIU that will be recruited. The reports will be based on field monitoring. The reports will be discussed with main stakeholders and population in a consultative process and main issues and mitigation plans will be described in the implementation plan and project implementation manual. As must be set forth in the operations manual for managing complaints, the project will on a monthly basis log incoming complaints and their management (through the GRM) and transmit to the task team on a quarterly basis; exceptionally, if there are urgent or sensitive complaints (Gender based violence, or other sensitive issues), the project will immediately alert Bank task team. The Operations Manual will specify all activities eligible to be promoted for subcomponent 2.b. The project will not finance the purchase of pesticides and will provide guidance to beneficiaries on how to avoid the use of pesticides, including a do not use list. For due diligence purposes, the agreements between the implementing agency and the selected livelihood groups will include general social and environmental clauses derived from the general conditions for environmental and social management. OPS_SAFEGUARD_DISCLOSURE_TBL B. Disclosure Requirements (N.B. The sections below appear only if corresponding safeguard policy is triggered) OPS_EA_DISCLOSURE_TABLE Environmental Assessment/Audit/Management Plan/Other For category A projects, date of Date of receipt by the Bank Date of submission for disclosure distributing the Executive Summary of the EA to the Executive Directors 27-Aug-2018 20-Sep-2018 "In country" Disclosure Congo, Republic of 21-Sep-2018 Feb 27, 2018 Page 18 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) Comments On Lisungi website OPS_RA_D ISCLOSURE_T ABLE Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank Date of submission for disclosure 27-Aug-2018 20-Sep-2018 "In country" Disclosure Congo, Republic of 21-Sep-2018 Comments Lisungi website OPS_I P_DIS CLOSURE_TA BLE Indigenous Peoples Development Plan/Framework Date of receipt by the Bank Date of submission for disclosure 27-Aug-2018 20-Sep-2018 "In country" Disclosure Congo, Republic of 21-Sep-2018 Comments Lisungi website OPS_ PM_D ISCLOSURE_TA BLE Pest Management Plan Was the document disclosed prior to appraisal? Date of receipt by the Bank Date of submission for disclosure NA "In country" Disclosure OPS_PM_ PCR_TABLE Feb 27, 2018 Page 19 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: OPS_COMPLIANCE_INDICATOR_TBL C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) (N.B. The sections below appear only if corresponding safeguard policy is triggered) OPS_EA_COMP_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Practice Manager (PM) review and approve the EA report? Yes Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes OPS_ PM_COM P_TA BLE OP 4.09 - Pest Management Does the EA adequately address the pest management issues? Yes Is a separate PMP required? No If yes, has the PMP been reviewed and approved by a safeguards specialist or PM? Are PMP requirements included in project design? If yes, does the project team include a Pest Management Specialist? NA OPS_ PCR_COM P_TA BLE OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? Yes Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on cultural property? Yes OPS_I P_COM P_TA BLE OP/BP 4.10 - Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Framework (as appropriate) been prepared in consultation with affected Indigenous Peoples? Yes If yes, then did the Regional unit responsible for safeguards or Practice Manager review the plan? Yes If the whole project is designed to benefit IP, has the design been reviewed and approved by the Regional Social Development Unit or Practice Manager? Feb 27, 2018 Page 20 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) Yes OPS_IR_ COMP_TA BLE OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? Yes If yes, then did the Regional unit responsible for safeguards or Practice Manager review the plan? Yes Is physical displacement/relocation expected? TBD Is economic displacement expected? (loss of assets or access to assets that leads to loss of income sources or other means of livelihoods) TBD OPS_F O_COM P_TA BLE OP/BP 4.36 - Forests Has the sector-wide analysis of policy and institutional issues and constraints been carried out? Yes Does the project design include satisfactory measures to overcome these constraints? Yes Does the project finance commercial harvesting, and if so, does it include provisions for certification system? No OPS_ PDI_ COMP_TA BLE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for disclosure? Yes Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? Yes Feb 27, 2018 Page 21 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) OPS_ALL_COMP_TABLE All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Yes Have costs related to safeguard policy measures been included in the project cost? Yes Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Yes Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? Yes CONTACT POINT World Bank Phillippe George Pereira Guimaraes Leite Senior Social Protection Economist Erkin Mamadaliev Senior Operations Officer Borrower/Client/Recipient Republic of Congo Ingrid Olga EBOUKA BABAKAS Ministre du Plan, de la Statistique et de l’Intégration Régi xxx@gmail.com Implementing Agencies Ministry of Social Affairs Antoinette Dinga Dzondo Minister antoinettedinga@gmail.com UGP LISUNGI Alfred Kiakouama coordinator ackiakouama@gmail.com Feb 27, 2018 Page 22 of 23 The World Bank LISUNGI Safety Nets System Project II (P166143) 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 APPROVAL Phillippe George Pereira Guimaraes Leite Task Team Leader(s): Erkin Mamadaliev Approved By Safeguards Advisor: Maman-Sani Issa 23-Nov-2018 Practice Manager/Manager: Penny Williams 27-Nov-2018 Country Director: Yisgedullish Amde 28-Nov-2018 Feb 27, 2018 Page 23 of 23