COMBINED PROJECT INFORMATION DOCUMENTS / INTEGRATED SAFEGUARDS DATA SHEET (PID/ISDS) ADDITIONAL FINANCING Report No.: PIDISDSA19780 Date Prepared/Updated: 03-Oct-2016 I. BASIC INFORMATION A. Basic Project Data Country: Solomon Islands Project ID: P160738 Parent P114987 Project ID (if any): Project Name: Rapid Employment Project Additional Financing (P160738) Parent Project Rapid Employment Project (P114987) Name: Region: EAST ASIA AND PACIFIC Estimated 19-Sep-2016 Estimated 30-Nov-2016 Appraisal Date: Board Date: Practice Area Social, Urban, Rural and Lending Investment Project Financing (Lead): Resilience Global Practice Instrument: Borrower(s): Ministry of Finance and Treasury Implementing Honiara City Council, Honiara City Council and Ministry of Infrastructure Agency: Development Financing (in USD Million) Financing Source Amount IDA Grant 1.90 Total Project Cost 1.90 Environmental B - Partial Assessment Category: Appraisal The review did authorize the team to appraise and negotiate Review Decision (from Decision Note): Other Decision: Is this a No Repeater project? B. Introduction and Context Country Context Page 1 of 12 The Rapid Employment Project (REP) was designed as an emergency employment project using the Bank's OP8.0 to target the poor and vulnerable populations in and around Honiara. It was set up in response to the Solomon Islands Government (SIG)'s request for support from the international community to help mitigate the risk of renewed violence in 2009/10. The country had experienced several years of conflict, known locally as the "Tensions," from 1998 to 2003. The recovery from conflict was disrupted when the country experienced a fiscal crisis in 2009, precipitated by the Global Economic Crisis (GEC) at the time. SIG feared that the poor in Honiara would feel the negative effects of the GEC most acutely, and REP was set up to provide a safety net. Youth unemployment and limited socio-economic opportunities for the urban poor are two challenges that remain critical for the Solomon Islands. Although the food poverty line varies by location, it is estimated that approximately 12.7 percent of people in Solomon Islands suffer basic needs poverty and are classified as "poor." The poverty line is highest in Honiara, followed by Guadalcanal, as basic needs costs twice as much as most other locations, and lowest in Temotu, followed by Malaita and Choiseul, where the cost of meeting basic needs is less than one-half of that in Honiara. Peri-urban households around the capital of Honiara suffer from disproportionate levels of poverty, which is about 15 percent higher than the national average of seven to ten percent, followed by Makira, where one-third of the population is poor, and Guadalcanal where one in five persons lives in poverty. As a national average, the poverty risk for female headed households is slightly less than male headed households. Only about 50,000 people out of a working population of over 250,000 are employed in the formal economy, with the bulk of the remaining population engaged in subsistence agriculture with periodic cash incomes. Rapid population growth (2.3 percent per year), has outstripped job creation in the formal economy. An estimated 7,500 young people enter the workforce each year but only one among every six school leavers will find paid employment. Many of these young people make their way into the urban and peri-urban areas particularly around Honiara, which has been growing at an average rate of 4.4 percent per year for the last ten years. A significant focus of the original project design is therefore designed to provide short-term employment and training opportunities for these vulnerable groups, and later, this was revised to also include improving access to services and markets through repaired, more climate resilient secondary and tertiary roads and access infrastructure in response to a request from SIG to shift the focus of the project to also include improving and strengthening the quality of urban and peri-urban roads damaged by severe weather events. Sectoral and institutional Context The original Youth Scoping Study completed by the Bank in 2008, highlighted some of the vulnerabilities and challenges faced by these two groups, which promoted follow up consultations with youth and women's groups themselves during project design and implementation. The three most prominent issues identified by participants themselves, were barriers to the labor market (limited employment opportunities), inadequate learning opportunities and Gender Based Violence (GBV) in the workplace, at home and as a result of the earlier conflict. General cultural bias, norms and resistance from men during early discussions around the project led to the project design incorporating specific targeting mechanisms for young men and women, through a combination of self-selection, geographic targeting and by the types of works to be undertaken. As a result, the project's recruitment and socialization campaigns specifically raise awareness around the participation of both young men and women; the sub-project selection screens for gender impacts; and most of the road maintenance and street cleaning activities has evidently demonstrated a higher appeal to women compared to men. More recently, to continue to raise the project's understanding of gender issues, GBV, and in an Page 2 of 12 effort to mitigate GBV risks within the project, the project conducted a review of gender impacts in November 2015. It now includes as part of the PET, referral services to SAFENET for young men and women that require further assistance or counseling and is developing project specific sexual harassment and GBV response protocols and guidelines. However, overall sex and youth disaggregated reporting on REP activities needs to be strengthened to better understand the project's citizen engagement and specific dynamics in the relations between women and men. Although the data exists, very little is reported on in the Quarterly and Semi-Annual reports, which could be used to feed into further analysis of the disaggregated data. This will help to strengthen overall lessons learned on RES and PET, and potentially feed into the design of a second phase. SIG's request for the Additional Financing (AF) is consistent with the CPS for 2013-2017, in particular the second area of engagement which focuses on supporting improvements in the equitable and accountable delivery of basic services across the country. In addition, the REP supports SIG's National Development Strategy (NDS) 2016-2035 goal of increasing social and economic opportunities through efforts to alleviate poverty; providing targeted programs to assist the vulnerable; and encouraging equitable distribution of public resources and economic benefits across the country. The Mid-Term Review of the project and recent discussions with the SIG about the potential for Phase II have highlighted the strong commitment to and ownership of the REP by SIG, and in particular by the two implementing agencies: Honiara City Council (HCC) and Ministry of Infrastructure Development (MID). Both agencies see REP activities as critical to their core mandate and the prospects of holding the 2023 South Pacific Games in Honiara provides a favorable environment for addressing urban issues. C. Proposed Development Objective(s) Original Project Development Objective(s) - Parent To assist targeted vulnerable urban populations to: (i) increase their incomes through the provision of short-term employment; and (ii) improve their knowledge, experience and basic employment skills that are valued in the workplace and society. Current Project Development Objective(s) - Parent The proposed new PDO is: to assist targeted vulnerable urban populations in the Recipient’s territory to (i) increase their incomesthrough the provision of short term employment; (ii) improve their knowledge, experience and basic employment skills that are valued in the workplace and society; and (iii) improve their access to services and markets through repaired, more climate resilient roads and access infrastructure. Key Results As evidence by the consecutive AFs, the project's efficacy in meeting its income and employment skills development sub-objectives is assessed as "Substantial." The project's semi-annual survey confirms that: 16% of REP beneficiaries reported that they had other employment when surveyed six months after graduating from REP and of those who obtained subsequent employment 54% were women and 46% men; 81% believed that REP was an important reason why they had obtained that other employment; 64% of respondents believed that REP did make a positive difference to their household wealth; and 98% of respondents who had obtained subsequent employment found the PET to be somewhat or very useful. Eleven percent of respondents also reported that they had invested some or all of their REP income on business activities. Of those who reported investing some or all of their REP income in business activities 76% were women, Page 3 of 12 24% men and 7% were youth. However, as part of the project's Restructuring and AF, certain indicators will be amended. These include: (i) Percentage of participants who obtained subsequent employment reporting that the REP was useful in obtaining that employment (further disaggregated by gender and youth); and (ii) Total number of labor days generated through the RES (further disaggregated by gender and youth). In addition, additional indicators will be added in order to better reflect the evolution and progress of the project. They include: (i) Percentage of REP graduates that obtained subsequent employment (further disaggregated by gender and youth); (ii) Average cost of benefits transferred by type of activity (waste management, community access infrastructure and road rehabilitation and maintenance); and (iii) Percentage of REP graduates reporting that they invested REP income in business activities, disaggregated by gender and youth. Furthermore, all end targets values with the exception of Numbers of PET graduates and Numbers of street theater or media initiatives conducted will be modified up to account for the AF. D. Project Description The AF will support the continuation of project activities for a further 24 months, scale up certain components of the project, and help to improve its overall development effectiveness and the sustainability of project impacts. Specifically, the AF will generate additional short-term employment and extend mentoring and referral services for job seekers and vulnerable urban groups, including women and youth; and maintain improved public service provision and access to services and markets through the rehabilitation of tertiary roads. In addition, and in accordance with the existing PDO, the AF will provide a small amount of financing to carry out pilot activities in one or two locations outside of Honiara, which will help to generate lessons on the provision of urban services and labor-intensive sub-projects in a low capacity environment with community participation. Component Name Sub-Component 1A: Road Repair and Maintenance Scheme. Comments (optional) Financing will be used to implement a four road contracts, two road improvement and two are road maintenance contracts. The two road improvement contracts will cover a total of 1.16 kms of tertiary roads, which will be upgraded to better standards and include the paving of road sections on steep slopes and concrete lining of side drains to enable them to better withstand harsh climate events. Two road maintenance contracts (6.8 kms of tertiary roads), will benefit from maintenance activities such as reshaping of road carriage surfaces, vegetation control and desilting of road drainage among others. The four contracts will generate an additional total of 7,622 labor days of work, employing a total of 152 workers who are trained in labor-based road maintenance. Component Name Sub-Component 1B: Urban works and Services. Comments (optional) Financing will be used to continue street cleaning, community works, such as brush cutting and drain desilting for another year, and the construction of small community access infrastructure including five Jacobs ladders (concrete steps and pathways), and site improvements in two schools. In addition, using similar methods adopted by the Urban Works and Services Scheme, Page 4 of 12 pilot activities will be initiated in Guadalcanal and planned in one other high growth urban location outside of Honiara to test labor-intensive community participation approaches in delivering urban services. Together, these activities are estimated to deliver an additional total of 77,000 labor days of work, employing a total of 1,540 persons, which equates to US$330,000 in wages transferred. Component Name Component 2: Pre-Employment Training (PET). Comments (optional) Financing allocated to the HCC will be used to continue to support a small team of two (Team Leader and Social Service Coordinator) to run a referral system for PET graduates to take advantage of further training opportunities, social services, or to get connected to potential employers, with a view to sustaining the improvements experienced by REP participants (new knowledge, more work, extra income), and help them decide on "next steps" after they have completed their work experience. In addition, the project may explore additional community- based models of delivery for the PET should additional funding be made available, including entrepreneurship and livelihoods training as well as incorporating a SMS banking component. Component Name Component 3: Incremental Project Management. Comments (optional) Financing will be used to continue to support supervision costs and consulting services to strengthen MID's and HCC's capacity to effectively supervise project activities, and implement the semi-annual monitoring survey as well as explore preparatory activities for a follow-on operation, including any studies that would need to be done. To the extent possible, the project will seek to complement other community-based projects as well as the Constituency Funds with a view to developing more sustainable and less sectoral specific governance structures as well as ways to strengthen community participation in urban areas, which tend to be more heterogeneous, and developing a better understanding constraints to market and services. E. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The project focuses on Honiara and its surrounding peri-urban areas. Solomon Islands is a fragile state and is vulnerable to conflict. The country has been rebuilding its economy which was severely affected by the economic downturn in the late 1990s/early 2000s and the subsequent tension and ethnic conflicts which arose out of the crisis. The country continues to be fragile as evidenced by recent riots and tensions from the slow response to the recovery efforts during the recent flooding. The island of Guadalcanal is approximately 148 km long and 50 km wide with a northwest- southeast orientation. The physical environment of Guadalcanal displays marked extremes, with the two highest peaks in the country, rugged mountains, and a large and highly productive area in the north, known as the Guadalcanal Plains. The project Area includes the 12 wards within the jurisdiction of HCC. The area is bounded by White River in the west and Lugga River in the east. Page 5 of 12 As a small Pacific Island state, Solomon Islands is particularly vulnerable to natural disasters. Not only is it prone to earthquakes, it is also at risk to cyclones and tsunamis. In April 2014, the Solomon Islands experienced severe flooding caused by an unprecedented tropical depression induced heavy rains which battered the country from April 1-5, 2014. The rainfall was deemed to be rarer than a one-in-100 year event. The flooding resulted in the loss of lives, homes and businesses, damages to existing infrastructures including roads. Honiara and Guadalcanal Province were declared disaster zones. F. Environmental and Social Safeguards Specialists Francisca Melia Setiawati (GSURR) Ly Thi Dieu Vu (GEN2B) II. Implementation Institutional and Implementation Arrangements The project comprises three components: Component 1: Rapid Employment Scheme (RES), is designed to provide short-term employment to unemployed residents of Honiara through labor based public works. It comprises two subcomponents: Sub-Component 1A Road Repair and Maintenance Scheme, implemented by the Ministry of Infrastructure Development (MID), is responsible for: i. Carrying out of labor-based road repair and maintenance works of the unpaved urban and peri- urban roads in and around Honiara. ii. Provision of technical assistance and training to build the capacity of local works contractors and of MID; and iii. Improvement and maintenance of urban and peri-urban roads in and around Honiara to reinstate critical access for vulnerable urban communities to the main roads and to basic socio-economic services after the floods. Sub-Component 1B Urban Works and Services, implemented by the Honiara City Council (HCC), is responsible for sub-project activities such as street cleaning, brushing and clearing, and development of community access infrastructure. Component 2: Pre-Employment Training (PET), provides basic life skills training to REP beneficiaries to prepare them for RES and for future employment opportunities. Topics covered include: Health and Personal Hygiene; Social Issues, Gender and Diversity; Environmental Awareness and Community Responsibilities; Problem Solving; Seeking Employment; Workplace Safety and Use of Hand Tools; and Supervisor-Employee Relations; and Financial Skills and Management. Additional coaching, counseling and referral services to employers and other social intermediaries, such as NGOs and CSOs was added in 2015 at the end of the basic life skills training. Component 3: Project Management Support, provides technical support to the implementing agencies, HCC and MID. Page 6 of 12 III.Safeguard Policies that might apply Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment Yes The overall environmental impacts is positive as OP/BP 4.01 employment-generating activities (road repair, storm water drainage cleaning, construction of concrete access paths, street cleaning and landscaping) contribute to make the city cleaner and more attractive. The proposed investments under the AF project such as the repair and improvement of tertiary roads is expected to make the roads less dusty in dry weather and less muddy in rainy weather. Better road surface also help to reduce gas emissions from vehicles. The proposed investments under the AF are small scale in nature and thus the potential impacts and risks would be limited to dust, noise, traffic and ground disturbance, and occupational health issues. These potential impacts are marginal, localized, temporary and manageable. An Environmental and Social Management Guidelines (ESMG) has been developed and applied for the parent project. It contains specific environmental mitigation measures applicable for each type of physical activities financed by the project. The ESMG was updated and re-disclosed in April 2014 taking into account the experiences of successive AF operations and project implementation. The ESMG was reviewed again for this AF. Since the types of AF project investments are the same as under the parent project, the mitigation measures are deemed adequate to address any potential environmental and social safeguards impacts which may arise under the AF. However, in view of the fact that climate resilient considerations are being incorporated in the ESMG, the document will be updated and re-disclosed again before and after Appraisal. Natural Habitats OP/BP 4.04 No As the project will be implemented in already developed urban areas including streets, roads and local communities, the project will not cause any impacts on any natural habitats. Forests OP/BP 4.36 No The project will not cause any impacts on forests or involve deforestation as sub-projects will be implemented in urban areas. Pest Management OP 4.09 No No chemicals will be used in the projects for pest control. Page 7 of 12 Physical Cultural Resources No Excavation would be very limited within the existing OP/BP 4.11 road base. Materials used for road repair and rehabilitation will be purchased from local suppliers, no borrow pits or quarries will be open under the project. Therefore OP 4.11 is not triggered. Indigenous Peoples OP/BP No OP 4.10 was not triggered under the original project, 4.10 and under subsequent AF operations, since it has been assessed and reconfirmed that no Indigenous Peoples reside in and around Honiara. The project has targeted urban and peri-urban communities in Honiara mostly made up of migrants, and the AF activities will take place in the same geographical locations as the parent project. Involuntary Resettlement OP/ Yes The exact details of road sections to be rehabilitated BP 4.12 are not yet available at this stage. While unlikely, some structures or crops may be affected and, in some cases, small portions of land may be acquired. The project has developed a Resettlement Policy Framework which forms part of the ESMG for the project. This will provide guidance to the project in addressing issues related to land acquisition for Right of Way (RoW)-related issues. The Resettlement Action Plan, which forms part of the ESMG, remains unchanged. However, the document will be updated and re-disclosed again before and after Appraisal. Safety of Dams OP/BP 4.37 No The AF Project activities would not affect any existing dam or depend on the safety of any existing dam. Projects on International No The AF Project will not be implemented in areas of Waterways OP/BP 7.50 international waterways or use water resources from international waterways. Projects in Disputed Areas OP/ No The AF Project will not be implemented in disputed BP 7.60 areas. IV. Key Safeguard Policy Issues and Their Management 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: Both the parent project's activities (road repair, storm water drainage cleaning, construction of concrete access footpaths in urban settlements, street cleaning, landscaping activities, and small scale community environmental improvement initiatives) and the AF's proposed investments (repairing and rehabilitating tertiary roads and urban works and services) are small-scale. The potential negative environmental impacts associated with these investments are small-scale, mostly site-specific and manageable. The project would not cause any large scale, significant or irreversible impacts. The project has brought about positive social and environmental impacts through short-term employment provision, improved local sanitation, roadside vegetation control Page 8 of 12 and waste collection and these outcomes will continue under the AF. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: In addition to providing short-term employment and pre-employment training, the AF will build on the positive impacts which REP has made in several key areas: (i) visible improvement to the urban environment from the street cleaning activities which in turn created a sense of pride and interest in urban regeneration and environmental protection; (ii) concrete steps and footpaths provide better access to main roads and thereby to schools, clinics, markets and workplaces in many vulnerable communities;(iii) stronger community ownership and involvement as a result of group based work approach and community level investments; and (iv) greater citizen-state accountability and legitimacy of local institutions responsible for delivery due to the provision of regular public services in Honiara. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. N/A. 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. In compliance with the World Bank OP 4.01, and the Solomon Islands Government's own requirements, Environmental and Social Management Guidelines (ESMG) was prepared by the SIG to serve as the Environmental Assessment (EA) for the project. The ESMG provides detailed guidance on the mitigation measures to be employed to address potential negative impacts of the proposed physical works. In addition, sufficient training has been provided to the project personnel for the effective implementation of the ESMG. The ESMG was updated and re-disclosed in March 2014. As part of the AF preparation, the ESMG has been further updated, to include a climate resilient screening tool, and will be re-disclosed in full after the project's appraisal. The ESMG also includes simple guidelines and technical matrices (e.g. list of environmental mitigation measures for each type of physical activities, Land Acquisition and Resettlement Screening Checklist, Land Occupier Consent Form, etc.) to facilitate the preparation of simplified Environmental Management Plans (EMP) for civil works contracts managed by MID and for Community Group Agreements managed by HCC. To date, subproject Environmental Management Plans (EMP) have been prepared and incorporated into bidding document and civil works contracts and community contracting managed by MID and HCC on a regular basis. Bidding documents and civil work contracts include items for safety gear and equipment. Environmental, health and safety topics are also incorporated in the Pre-Employment Training curriculum (Component 2 of the Project). Acceptable mitigation measures have been applied at construction sites and the observed level of environmental impacts are marginal. The ESMG also includes a Resettlement Policy Framework (RPF) to address project impact on land use and on livelihoods as well as a consultation matrix to guide the project's consultations with communities. In addition, the project has also established a GRS to seek feedback from community groups and project stakeholders. This has been assessed as effective during a review carried out in September 2013. The GRS flowchart and form were updated once more during the 9th ISM, and a re-orientation for PIU staff made to update staff skills for the management of the Grievance Redress Service (GRS). The implementing agencies have acquired and developed the basic knowledge and skills to apply the World Bank's safeguard policies during four years implementation of the parent project. Page 9 of 12 Therefore, PIU capacity is adequate to manage safeguards in the AF project. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Consultations at various levels were conducted during project preparation and in the development of the ESMG. Consultations were held with line agencies (Ministry of Lands, HCC and MID), civil society, NGOs, youth, community and settlement groups, ward councilors and ward advisory committees. These consultations were summarized in the ESMG. These types of consultations are done regularly and routinely during implementation as well as in the identification, selection and preparation of the subproject activities under the AF. B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 30-Sep-2016 Date of submission to InfoShop 02-Oct-2016 For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors "In country" Disclosure Solomon Islands 04-Oct-2016 Comments: Disclosed in Island Sun, national circulation. Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank 30-Sep-2016 Date of submission to InfoShop 02-Oct-2016 "In country" Disclosure Solomon Islands 04-Oct-2016 Comments: Disclosed in Island Sun, national circulation. 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: C. Compliance Monitoring Indicators at the Corporate Level OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) Yes [ ] No [ ] NA [ ] report? If yes, then did the Regional Environment Unit or Practice Yes [ ] No [ ] NA [ ] Manager (PM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated Yes [ ] No [ ] NA [ ] in the credit/loan? Page 10 of 12 OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/ Yes [ ] No [ ] NA [ ] process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Yes [ ] No [ ] NA [ ] Practice Manager review the plan? Is physical displacement/relocation expected? Yes [ ] No [ ] TBD [ ] Provided estimated number of people to be affected Is economic displacement expected? (loss of assets or access to Yes [ ] No [ ] TBD [ ] assets that leads to loss of income sources or other means of livelihoods) Provided estimated number of people to be affected 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? Have satisfactory implementation arrangements been agreed Yes [ ] No [ ] NA [ ] with the borrower and the same been adequately reflected in the project legal documents? V. Contact point World Bank Contact: Sonya Woo Title: Senior Operations Officer Contact: Ingo Wiederhofer Title: Lead Social Development Specia Borrower/Client/Recipient Name: Ministry of Finance and Treasury Contact: Harry D. Kuma Title: Permanent Secretary Email: hkuma@mof.gov.sb Implementing Agencies Page 11 of 12 Name: Honiara City Council Contact: Charles Kelly Title: City Clerk Email: Kellycharles74@gmail.com Name: Honiara City Council and Ministry of Infrastructure Development Contact: Henry Murray Title: Permanent Secretary Email: Henry.Murray@mid.gov.sb VI. For more information contact: The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VII. Approval Task Team Leader(s): Name: Sonya Woo,Ingo Wiederhofer Approved By Practice Manager/ Name: Kevin A Tomlinson (PMGR) Date: 03-Oct-2016 Manager: Country Director: Name: Virginia Ann Horscroft (CD) Date: 03-Oct-2016 Page 12 of 12