INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Public Disclosure Copy Report No.: ISDSC1505 Date ISDS Prepared/Updated: 02-Apr-2013 Date ISDS Approved/Disclosed: 02-Apr-2013 I. BASIC INFORMATION A. Basic Project Data Country: Ethiopia Project ID: P130276 Project Name: Pastoral Community Development Project III (P130276) Task Team Laketch Mikael Imru Leader: Estimated 17-Jun-2013 Estimated 26-Sep-2013 Appraisal Date: Board Date: Managing Unit: AFTA3 Lending Adaptable Program Loan Instrument: Sector(s): Animal production (25%), General agriculture, fishing and forestry sector (25%), Irrigation and drainage (20%), General water, sanit ation and flood protection sector (15%), Other social services (15%) Theme(s): Rural services and infrastructure (33%), Other social development (17%), Natural disaster management (17%), Decentralization (17%), Rural policies and institutions (16%) Public Disclosure Copy Financing (In USD Million) Total Project Cost: 230.00 Total Bank Financing: 100.00 Total Cofinancing: Financing Gap: 0.00 Financing Source Amount BORROWER/RECIPIENT 35.00 International Development Association (IDA) 100.00 International Fund for Agriculture Development 95.00 Total 230.00 Environmental B - Partial Assessment Category: Is this a No Repeater project? B. Project Objectives To enhance growth and stability of incomes, increase asset base and improve access to public services among pastoral communities through the operationalization of demand driven models of investment and service delivery (social, financial and support to livelihoods) throughout Ethiopia’s pastoral and agro-pastoral woredas C. Project Description Public Disclosure Copy PCDP III will continue with and geographically expand implementation of most PCDP I and II components with some modifications to promote better quality of investments and services and ensure institutionalization of new approaches. It is proposed that PCDP III have four components as follows: a. Service Provision for Sustainable Livelihoods through community investment funds (171 million USD) b. Rural Livelihoods Program , (35 million USD) c. Knowledge Management and Learning (7 million USD) ; and, d. Project Management and M&E (17 million USD). PCDP III will not continue with its interventions under the Pastoral Risk Management component of the Program. In May, 2010, the GoE shared with its development partners a draft “National Policy and Strategy for Disaster Risk Management (DRM)� that promote a holistic approach to dealing with multi-hazard disasters and has subsequently developed a comprehensive DRM investment framework that takes full account of lessons from PCDP I and II. PCDP’s Pastoral Risk Management component is best implemented in a coordinated manner within the DRM SPIF. Additionally, the World Bank and the African Development Bank are in the process of preparing with the GoE the RPLRP recognizing that many of the issues of pastoralists’ vulnerability in the Horn of Africa (including Ethiopia) are regional in nature. The RPLRP will take forward some of PCDP’s DRM initiatives in a regional context. The preparation of this project is being carried out in close consultation with the PCDP team. Implementation reviews of PCDP activities have provided several recommendations and opportunities to strengthen phase III design within each project component as follows: • Service Provision for Sustainable Livelihoods through CIF: while PCDP phases I and II Public Disclosure Copy have helped to expand public services to the generally under-served pastoral and agro-pastoral areas of Ethiopia; and, introduced demand-driven models for grassroots service delivery and investment, more needs to be done in terms of (i) institutionalizing the CDD process promoted as a model of public investment and service delivery ---through a strong program of capacity building of both communities and local level implementing bodies and extending the CDD process to woreda level planning as well as better coordination with complementary interventions; e.g., PSNP; (ii) improving quality of service delivery, particularly in terms of offering options that relate to pastoralist livelihood systems in Ethiopia (such as mobile services, gender sensitivity, ensuring availability of water at service points, etc.) and (iii) introducing community feedback mechanisms on PCDP services and investments (such as community score cards successfully piloted under the PBS’ social accountability interventions) to deepen PCDP’s achievements in community empowerment. The geographic scope of the CIF will be expanded to cover all pastoral and agro-pastoral woredas of the country that are not affected by conflict (hence risk disruption of activities—see Section 5). The Program will, however, no longer be involved in woredas that were covered in its first phase as it is expected that such woredas will graduate out of the program at the end of PCDP II. Furthermore, PCDP III will consider introducing performance based allocations to the CIF in the woredas that remain. • Rural Livelihoods Program: PCDP III will continue to promote the establishment of pastoral SACCOs in PCDP program woredas and deepen its capacity building support to already established SACCOs. As in the case of PCDP II, support will include awareness building programs and training, provision of basic office equipment, account books and promotional material, financing (on a sliding Public Disclosure Copy scale) the recruitment of book-keepers for new SACCOs and a grant ofup to 200% of pre-registration compulsory and voluntary savings as seed capital for income generating activities. The RLP will also continue supporting pastoral households in the development of viable income generating activities. Options for linking pastoral households more effectively with national markets will also be explored. The preparation of PCDP III will further explore options for consolidating SACCOs into larger units and developing linkages with formal MFIs or banks to leverage additional loan capital and expand the scale of operation of an individual SACCO. As in the case of the CIF, the geographic scope of the RLP will be expanded to cover most pastoral and agro-pastoral woredas of the country. • Participatory Learning and Knowledge Management (PLKM). Many of the interventions under this component remain valid, particularly in relation to putting in place a systematic communications, knowledge management and networking strategy to support sectoral dialogue, and to promote effective decision making and transparency within the project. However, implementation of the PCDP II’s efforts towards participatory action learning and policy implementation studies has not been successful. Given that PCDP III is the final phase of the Program, it is proposed that these sub-components be re-focused towards documenting and disseminating best practices. It is also proposed that as PCDP’s DRM activities are moved to other operations, this component include technical assistance to program development under the DRM SPIF so that progress to date in developing pastoral early warning systems, disaster preparedness and con tingency plans and regional DPSIPs are properly incorporated within the DRM SPIF. • Project Support: The third phase will continue with emphasis on strong M&E systems and support to implementation capacity development, particularly in terms of strengthening financial management and procurement capacity. The fiduciary risk of the Program is rated as high given Public Disclosure Copy weak financial management and procurement capacity within implementing agencies and the decentralized nature of the Program. To mitigate this risk, PCDP III will continue to invest in the capacity of local government personnel. High turnover of staff makes it difficult to ensure long-term capacity development and care will be taken to roll out trainings in a continuous manner. Local government will also continue to be supported by MSTs that will be strengthened so that they have the capacity to mentor and coach woreda staff and can ensure that timely financial and activity reports are being produced; and, step in at times of staff departure to perform necessary back up functions until replacements are put in place. Additionally, investments in the capacity of communities will allow them to play a leading role in the management of the Program’s community level investments. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) PCDP III will be located in most pastoral and agro-pastoral areas of Ethiopia including Afar National Regional State, Somali National Regional State; and, several districts in the Oromiya, Gambella and Southern Nations Nationalities and Peoples Regions. E. Borrowers Institutional Capacity for Safeguard Policies There is staff in place within the Federal Program Coordination Unit to manage safeguards issues and the mobile support teams also have focal persons. The staff at all levels may need further training to strengthen social and environmental impact assessments for sub projects as well as implementation and monitoring of safeguards. If the project determines that OP/BP 4.10 on Indigenous People is triggered, there is a need to provide technical assistance for the project in Public Disclosure Copy preparing Indigenous Peoples’ Plans. F. Environmental and Social Safeguards Specialists on the Team Edward Felix Dwumfour (AFTN3) Desta Solomon (AFTCS) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes PCDP III will finance small scale community BP 4.01 driven sub-projects some of which will require environmental management. These can include schools, health posts, veterinary posts, small water supply and irrigation, small feeder roads, catchment management improvements. The ESMF for PCDP II will be used for this project and updated, as necessary. Natural Habitats OP/BP 4.04 Yes Pastoral areas encompass some natural habitats which are protected by law, such as the Awash and Yangudi Rasa National Parks (Afar), Yabello sanctuary (Borena) and the Babile Wildlife Sanctuary (Somali). It is conceivable that PCDP III may operate in woredas that include or border upon these areas or other areas that qualify as natural habitats under OP. 4.36. Mitigation measures are in the ESMF. Public Disclosure Copy Forests OP/BP 4.36 No Forests are not a common feature of the Ethiopian lowlands where PCDP III will operate and thus the project is not expected to affect or involve forests. Pest Management OP 4.09 Yes Promotion of rain fed and/or irrigated farming where feasible and profitable is part of promoting sustainable livelihoods and may indirectly involve use of pesticides. The Pesticide Management Plan from PCDP II will be used for this project and updated, as necessary. Physical Cultural Resources OP/ No There are few areas in the Ethiopian lowlands BP 4.11 that constitute cultural property in the sense described in OP. 4.11. The micro-projects would be unlikely to involve excavation or inundation and are thus not likely to affect physical cultural resources. Furthermore, activities will be carried out only in areas selected by local citizens who would give great importance to safeguarding their cultural property Public Disclosure Copy Indigenous Peoples OP/BP 4.10 TBD The GoE and Bank have agreed on a Terms of Reference for a screening of ethnic groups in five regions, including Gambella, against the defining criteria in OP 4.10, and this work is ongoing. A social assessment is also being undertaken. If it is determined that the PCDP III involves indigenous peoples, an Indigenous Peoples Planning framework will be developed. Involuntary Resettlement OP/BP Yes PCDP III interventions may involve acquisition 4.12 of land and /or restriction of access to communal natural resources. An RPF will be developed. Safety of Dams OP/BP 4.37 No PCDP III will not finance large investments aimed at dam construction, nor does it depend on dams for irrigation and water supply. Projects on International Yes Notification of intended water use has been sent Waterways OP/BP 7.50 to Somalia and Kenya under PCDP I. Preparation for PCDP III will check if investments result cumulatively in more irrigated area than specified in the notifications. If PCDP III expands to the Gambella Region, additional notifications will be required since water systems in this Region are part of the White Nile River Basin which was not included Public Disclosure Copy under the earlier phases of the Program. Projects in Disputed Areas OP/BP No The project is not being implemented in any 7.60 disputed areas. III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 31-Mar-2013 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: PCDP III will continue to apply the Environmental and Social Framework (ESMF) and Pesticides Management Plan (PPM) already in place. IP Screening will be carried out in the next two PCDP III will continue to apply the Environmental and Social Framework (ESMF) and Pesticides Management Plan (PPM) already in place. IP Screening will be carried out in the next two months, following which the GoE will undertake a social assessment, undertake free prior and informed consultations, as well as preparation of an Indigenous Peoples Planning Framework (IPPF) to be completed during preparation. IV. APPROVALS Task Team Leader: Name: Laketch Mikael Imru 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. Approved By: Regional Safeguards Name: Alexandra C. Bezeredi (RSA) Date: 20-Mar-2013 Coordinator: Public Disclosure Copy Sector Manager: Name: Tijan M. Sallah (SM) Date: 26-Mar-2013 Public Disclosure Copy