INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Public Disclosure Copy Report No.: ISDSC832 Date ISDS Prepared/Updated: 05-Feb-2013 Date ISDS Approved/Disclosed: 09-Feb-2013 I. BASIC INFORMATION A. Basic Project Data Country: Uganda Project ID: P130471 Project Name: Competitiveness and Enterprise Development Project (CEDP) (P130471) Task Team Moses K. Kibirige Leader: Estimated 21-Feb-2013 Estimated 25-Apr-2013 Appraisal Date: Board Date: Managing Unit: AFTFE Lending Specific Investment Loan Instrument: Sector: General industry and trade sector (35%), Other industry (30%), SME Finance (15%), Other domestic and international trade (10%), Agro -industry, marketing, and trade (10%) Theme: Micro, Small and Medium Enterprise support (25%), Infrastructure services for private sector development (13%), Legal institutions f or a market economy (13%), Rural markets (24%), Export development and competitiveness (25%) Public Disclosure Copy Financing (In USD Million) Financing Source Amount BORROWER/RECIPIENT 2.50 International Development Association (IDA) 100.00 Total 102.50 Environmental B - Partial Assessment Category: Is this a No Repeater project? B. Project Objectives The proposed development objective of the project is to improve selected aspects of the investment climate in Uganda with particular focus on MSMEs. C. Project Description Component 1: Land Administration Reform (US$ 55 million) 1. The land component of CEDP will fund the continuation and the scaling up of the land reform process carried out under PSCP II. The land component of CEDP is expected to provide US $55 million to: Public Disclosure Copy (i) Modernize systems and infrastructure for land administration including: completion of the construction of 8 zonal land offices; enhancing and rolling out computerized land information system (LIS) to 21 zonal land offices; strengthening valuation and land use planning; developing legal and policy framework for land-related housing and urban development; developing policies for geodetic reference framework, national spatial data infrastructure and mapping; re-equipping the Survey and Mapping Department to service land administration; and production of base maps for land administration and other spatial purposes (US$ 27 million); (ii) Improve management of public land by completing the inventorying and registration of Government land and the review and programming of legal, institutional, and operational aspects of the Uganda Land Commission (US$ 2 million); (iii) Accelerate registration of communal lands in northern and eastern regions (primarily Acholi and Lango land) and of individually owned lands all over the country including: organizing and formalizing communal groups into Communal Land Associations (CLAs); demarcating and registering communal lands in the names of CLAs; and documenting individual land rights and issuing certificates and title deeds (US$ 14 million); (iv) Strengthen institutions and mechanisms for land dispute resolution including: supporting the judiciary to review court processes and rules in order to improve court performance in the adjudication of land cases and to strengthen it and other relevant agencies (land tribunals, local councils, Area Land Committees, recorders and Traditional Institutions) in the use of Alternative Dispute Resolution (ADR) and other mediation mechanisms in the resolution of land cases; compilation and dissemination of relevant legal documents to raise greater awareness of the law and appreciation of people’s land rights; capacity development of judicial and other land adjudication Public Disclosure Copy institutions through training; and review of the Legal and Institutional framework for restoration and functioning of land tribunals (US$5 million); and (v) Institutional review, capacity development and management of the land component including: organizational and functional review of the land administration and management institutions in line with on-going modernization efforts and to enhance sustainability; comprehensive review of skill gaps in public and private sectors and development and implementation of capacity development programs; consolidation of the rehabilitation and modernization of the Institute of Survey and Land Management; development and implementation of the gender, civil society engagement and communication strategies; and management of the project component, including procurement, financial management, reporting and M&E (US$ 7 million). Component 2: Business Registration, Business Licensing and Construction Permits Reform (US$10 million) 2. This component aims to reduce the burden for businesses in dealing with registration and licenses procedures by limiting the scope of application and streamlining the issuance processes through the creation of dedicated one-stop-shops (one for registration and business licenses and one for the issuance of construction processes), accessible also on-line. 3. The activities will include: Public Disclosure Copy (i) Business Registration One-Stop-Shop and Business Licensing E-Registry (US$ 8.5 million). Establishment of a one-stop shop which will serve as a single access point for business to complete the registration procedures and business licensing e-registry that will serve as the sole repository of all approved business licenses in Uganda. The activities will include: construction of the head office for the URSB; establishment of a business registry and licensing technology platform and software application; establishment of a network of local/regional offices of the business registration one-stop- shop; activities aimed at the streamlining of business registration and business licensing procedures and elimination of unnecessary licenses and procedures, including focus on priority sectors such as tourism and construction; and impact evaluation and identification of a package of incentives that works best in terms of impact on formalization and performance of newly established businesses. (ii) Capacity-Building Initiatives (US$ 0.5 million). Capacity-building of the URSB staff and other relevant regulatory agencies; and (iii) Stakeholder Outreach (US$ 1 million). Communication campaign and improving transparency and communication with businesses and the public using, television, newspapers, radio, brochures, a consultation portal, conferences and seminars. Component 3: Tourism Development (US$ 25 million). 4. This component is to upgrade critical human resource and technical capacity in the Ministry of Tourism, Wildlife and Antiquities (MoTWA), support branding/marketing development efforts and the Hotel and Tourism Training Institute (HTTI) in Jinja to provide needed training: (i). Sub-component 1: Institution Skills Enhancement ($3 million). This sub-component will enable Public Disclosure Copy skills and institutional development for Uganda's newest Ministry-which can respond adeptly to a sector that needs a strong Ministry. Tourism requires strong public/private collaboration, as well as collaboration across Ministries (e.g., transport, environment, trade). It also requires strong collaboration within MoWTA. • This sub-component will enable development of capacity in key sector performance activities, such as tourism statistics and data collection; lodging classification system; and registration/licensing tourism guides for nature based and cultural/heritage tourism. (ii). Sub-component 2: Tourism Product Planning, Packaging and Promotion ($10 million). This sub- component will support sector development through tourism product planning, packaging (e.g., bundling) and promotion. • Planning: support activities defining tourism products beyond current offerings through integrated tourism destination planning (rather than tourism promotion only). • Packaging: development of the tourism value chain for domestic, intra-regional and international (long-haul) travelers and support to public and private sector entities (such as government/ministry agencies and local communities/municipalities; and trade associations) to develop key linkages (complementing and further supported by matching grant activities in the project) for tourism products that are competitive. Support can also be provided for the development of tourism routes and activities to attract investment. Public Disclosure Copy • Promotion: development and implementation of traditional and on-line marketing and promotion materials; technical assistance and capacity building for UTB and UWA and other tourism focused agencies to communicate a comprehensive brand and deliver a high standard of targeted promotion for key segments (e.g., international, intra-regional and domestic tourism) of nature, culture and business tourism products. (iii). Sub-component 3: Labor Force Development ($12 million). This sub-component supports the development of hospitality and tourism workers and entrepreneurs through redevelopment (physical, operational and curriculum) of the HTTI. Some of the specific activities expected to be undertaken will include: • Building/renovation of operational "teaching hotel", instructional/academic facilities (e.g., library, computer labs, kitchens) and student lodging • Professional development of instructors and institute administrators • Upgrading of instructional programs and curricul a for traditional students and continuing professional studies • Establishment of a viable business model through partnerships and sector collaboration to assure financial sustainability and on-going relevance Component 4: Enhancing Enterprise Competitiveness - Matching Grant Program for SMEs in Tourism and exports of non-traditional commodities (US$ 8 million) Public Disclosure Copy 5. The component aims to improve enterprise capacity by enabling MSMEs access matching grants of up to 50 percent towards planned interventions. The interventions will include business development services, planning and skills development and business efficiency to increase productivity through raising standards at the firm level. The project will support a matching grant program for high potential sub-sectors identified in the Uganda CICS II: tourism, coffee, grains and pulses, horticulture, edible oils, fisheries, and information technology/business process outsourcing. The Matching Grant Facility (MGF) will be operated as a Unit under the CEDP and will report administratively to the PSFU and technically to CEDP Steering Committee. The MGF will have periodic calls for proposals as opposed to open submission of proposals (year round), in order to enhance reviews and tracking of beneficiaries and make it easier to assess impact on an on-going basis. In order to assess the projects effectiveness in reaching the project development objective, firm-level data will be first collected from participating MSMEs in the beginning of the project and then after two years and five years. Details of the MGF operation are outlined in the draft MGF Operations Manual which has been prepared by PSFU. 6. The MGF funds will be provided to procure the following types of business development services: (i) management training; (ii) acquisition of quality certification systems- International Organization for Standardization (ISO) and Hazard Analysis Critical Control Point System (HACCP); (iii) business plan preparation; (iv) marketing; (v) record keeping; (vi) finance; and (vii) production techniques. The grant program will finance 50 percent of the cost of using consultants and other service suppliers, up to a US$ 100,000 limit per beneficiary. This component will target women-owned MSMEs by devoting extra attention to the sectors in which they are known to operate extensively and reaching out to them to inform about the services offered by the MGF and their Public Disclosure Copy benefits. The project will encourage women and women’s cooperatives to make use of the MGF and promote greater involvement in business associations and assist with opportunities for promotions within companies. Component 5: Project Implementation and Coordination (US$ 2 million) 7. This component will support project implementation and coordination. The Ministry of Lands, Housing and Urban Development will implement the Land Administration Reform component and the Private Sector Foundation Uganda (PSFU), an association comprised of membership organizations (e.g., Uganda Manufactures Association, Uganda Farmers Association) and which leads the private sector dialogue with government, will be the implementing agency for the rest of the components of the proposed project. The Project Coordination Unit contracted by PSFU will work under the guidance provided by the Project Steering Committee composed of members of the main agencies benefiting from the project. The Project Steering Committee will appoint Permanent Secretaries responsible for the respective project components to work with the Project Coordination Unit on a regular basis. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) 8.Project’s physical activities will be limited to small, site specific civil works for rehabilitation or construction of Cadastral Land Offices throughout Uganda, rehabilitation of offices of the Institute of Surveying and Land Management, renovation or construction of the Hotel and Tourism Training Institute (HTTI) maintenance or rehabilitation of small public infrastructure facilitating tourism in protected areas in the eastern circuit (Kidepo Valley National Park, Mt. Elgon National Park and adjacent conservation areas), such as signage, park gates, boundary markers, trails, etc. Public Disclosure Copy 9. The project physical activities will be located in Kampala, Jinja and throughout selected urban and municipal centers of Uganda, as well as Kidepo Valley National Park, Mt. Elgon National Park and other nature tourism areas of Eastern Uganda. Project reforms in support of land cadaster, land dispute resolution, and other national reforms will have impacts nationwide on improving transparency and security of land tenure. 10. The Matching Grant program for MSEs for high potential sub-sectors as identified in the Uganda Competitive and Investment Climate Strategy 2011-2015 include coffee, tourism, grains and pulses, horticulture, edible oils, fisheries, and Information Technology/Business Process Outsourcing. Under this new initiative, funds will be provided to procure business development services in the form of management training, acquisition of quality certification systems (ISO and HACCP), business plan preparation, marketing, record keeping, environmental and social due diligence, finance and production techniques. E. Borrowers Institutional Capacity for Safeguard Policies 11. The borrower has had prior experience managing World Bank Projects and therefore has some knowledge and capacity for safeguards management relating to Bank environmental and social safeguard policies. The environmental and social instruments developed during preparation will reassess this capacity and propose appropriate strengthening measures to be included in the project. F. Environmental and Social Safeguards Specialists on the Team Yasmin Tayyab (AFTCS) Public Disclosure Copy Martin Fodor (AFTN3) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes Safeguards policy OP 4.01 has been triggered, BP 4.01 given that the project will include civil works, primarily for rehabilitation and refurbishment of office buildings and a hotel school, as well as small nature tourism related infrastructure. Some new structures, e.g. new offices, may be built. The site and scale of potential infrastructures have not been identified in detail at the time of project preparation except for cadastral offices for which Environmental and Social Impact Assessment was carried out and cleared by the National Environmental Management Authority (NEMA). For other project activities, an Environmental and Social Management Framework (ESMF) will be prepared, consulted upon, and publicly disclosed in Bank InfoShop and locally to guide identification and management of potential environmental and social impacts. Consultations with project stakeholders will be carried out as a part of ESMF preparation. Public Disclosure Copy Natural Habitats OP/BP 4.04 No Given the anticipated small scale of projects physical interventions, the project is not anticipated to have a potential for significant adverse impacts on critical natural habitats, e. g. national parks and conservation areas, or on natural habitats. This assumption will be confirmed during preparation based on additional information gleaned during project preparation about location and scale of proposed infrastructure. Nonetheless, the policy is triggered due to likely location of some project activities in protected areas. Identification of potential natural habitat issues will be built into the screening mechanism and eligibility criteria in the ESMF to ensure that project interventions that would have significant adverse impacts are identified, adequately consulted upon, and their impacts avoided, mitigated or compensated. the project during its implementation are excluded from project financing. Public Disclosure Copy Forests OP/BP 4.36 No The project is not expected to affect the health or management of forests, and will not support forestry or logging operations. Pest Management OP 4.09 No Project is not envisioned to entail any pest or pesticide management. Nonetheless, appropriate screening for use of pesticides will be included as part of environmental screening process under the ESMF Physical Cultural Resources OP/ Yes The project’s civil works may lead to accidental BP 4.11 finds or physical cultural resources, or have potential to affect known cultural resources, such as the rock paintings whose development into tourist sites it will support. The ESMF will include provisions for screening for potential impacts on physical cultural resources, and guidelines for handling chance finds. For activities targeting known physical cultural resources, an ESIA will be prepared. Indigenous Peoples OP/BP 4.10 TBD The project is not expected to include known indigenous people’s areas. The policy is assumed not to be triggered; however, the assumption will be confirmed before appraisal based on the additional information about location of project activities identified during Public Disclosure Copy project preparation, and reviewed against information about indigenous peoples (Ik) in the Mt. Moroto area in Northern Uganda. Involuntary Resettlement OP/BP Yes There is a possibility of land acquisition or 4.12 displacement of land uses due to civil works and rehabilitation of infrastructure. The specific sites or locations of some of the projects physical activities are not known. A Resettlement Policy Framework (RPF) will be prepared to specify the process for preparing, reviewing, approving and implementing subsequent Resettlement Action Plans (RAPs) for the project before the relevant civil works are initiated, should any be required. The RPF and PAD will also describe the land tenure arrangements and any risks that could affect land acquisition leading to involuntary resettlement and/or restrictions of access to resources and livelihoods. Safety of Dams OP/BP 4.37 No This project will not support dams or depend on them for achieving its objectives. Public Disclosure Copy Projects on International No No impacts on international waterways are Waterways OP/BP 7.50 envisaged. Projects in Disputed Areas OP/BP No No disputed areas were identified in any 7.60 potential project locations. III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 28-Feb-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: The studies if any will be completed by February 28, 2013. IV. APPROVALS Task Team Leader: Name: Moses K. Kibirige Approved By: Regional Safeguards Name: Cary Anne Cadman (RSA) Date: 05-Feb-2013 Coordinator: Sector Manager: Name: Irina Astrakhan (SM) Date: 09-Feb-2013 Public Disclosure Copy 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.