Republic of Guatemala Ministry of Economy Project: ‘‘Responding to COVID-19: Modern and Resilient Agri-food Value Chains’’ (P173480) ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 19 November 2020 Environmental and Social Commitment Plan (ESCP): Project: ‘‘Modern and Resilient Agri-Food Chains’’ P173125 Environmental and Social Commitment Plan (ESCP) 1. The Republic of Guatemala, through the Ministry of Economy (MINECO), will implement the Project: “Responding to COVID-19: Modern and Resilient Agri-Food Value Chains� (the Project). The International Bank for Reconstruction and Development (hereinafter, the Bank) has agreed to provide financing for the Project. The International Fund for Agricultural Development (IFAD) has agreed to provide part of the financing for the Project and to apply the World Bank’s Environmental and Social Standards (ESSs). 2. The Republic of Guatemala, through MINECO, will implement material measures and actions so that the Project is implemented in accordance with the ESSs. This Environmental and Social Commitment Plan (ESCP) sets out the material measures and actions and the specific documents or plans required, as well as the timeframe for the implementation of each one of them. 3. The Republic of Guatemala, through MINECO, will also comply with the provisions of all other environmental and social documents required under the Bank’s ESSs and mentioned in this ESCP: the Environmental and Social Management Framework (ESMF) [Marco de Gestión Ambiental y Social MGAS], the Environmental and Social Management Plans (ESMP) [Planes de Gestión Ambiental y Social PGAS], the Labor Management Procedures (LMP) [Procedimientos de Gestión de Mano de Obra PGMO], the Indigenous Peoples’ Planning Framework (IPPF) [Marco de Planificación de Pueblos Indígenas MPPI], the Indigenous Peoples Plans (IPP) [Planes de Pueblos Indígenas PPI], and the Stakeholder Engagement Plan (SEP) [Plan de Participación de las Partes Interesadas PPPI], according to the timeframes specified in this ESCP and in these environmental and social documents. The instruments developed and the commitments arising therefrom shall be consistent with national legislation and the standards of the World Bank’s Environmental and Social Framework. The environmental and social documents referred to in the ESCP can be updated, subject to the written consent of the Bank. 4. The Republic of Guatemala, through MINECO, will be responsible for fulfilling all the requirements of the ESCP, even when the implementation of specific measures and actions is the responsibility of the ministry, agency, or unit mentioned in point 1. 5. The Republic of Guatemala, through MINECO, will monitor the implementation of the material measures and actions set out in this ESCP and will inform the Bank, as required by the ESCP and the conditions of the legal agreement, and the Bank will monitor and assess the progress and completion of these measures and actions throughout the implementation of the Project. 6. As agreed by the Bank and the Republic of Guatemala, this ESCP may be revised from time to time during Project implementation to reflect adaptive management of Project changes and unforeseen circumstances, or in response to assessments of Project performance conducted under the ESCP itself. In such circumstances, the Republic of Guatemala, through MINECO, will agree to the changes with the Bank and will update the ESCP to reflect such changes. Agreements on changes to the ESCP will be documented through the exchange of letters signed by the Bank and the Minister in charge of MINECO. MINECO will promptly disseminate the updated ESCP. 7. Where Project changes, unforeseen circumstances, or Project performance result in changes to the risks and impacts during Project implementation, the Republic of Guatemala shall provide additional funds, if needed, to implement measures to address these risks and impacts. 2|Page Environmental and Social Commitment Plan (ESCP): Project: ‘‘Modern and Resilient Agri-Food Chains’’ P173125 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE AGENCY MONITORING AND REPORTING A REGULAR REPORTING MINECO (PRONACOM – the Prepare and submit regular monitoring reports to the Bank about Submit half-yearly reports during Project National Competitiveness performance in the environmental, social, health, and occupational implementation. The first report will be submitted at Program) safety aspects of the Project, which shall include, among other things, the end of the first six months after the date on which ESCP implementation, the status of the preparation and execution of the Project is declared effective. The reports will be the environmental and social documents required for the Project, submitted within 30 days following the end of each stakeholder engagement activities, and the operation of the Grievance six-month period. Redress mechanism. B INCIDENTS AND ACCIDENTS MINECO (PRONACOM) Promptly inform the Bank of any Project-related incident or accident MINECO (PRONACOM) will inform the Bank no later that has or can have a significant adverse effect on the environment, than 48 hours after it becomes aware of the incident the affected communities, the public, or workers (for e.g. fatalities, or accident. The subsequent report will be sent cases of abuse, sexual exploitation or harassment, ethnic violence, and within a timeframe deemed acceptable by the Bank, impacts on natural habitats). Provide sufficient details regarding the as requested. incident or accident, indicating the immediate measures taken to address it, and include all the information provided by the contractors and supervising entities, as appropriate. Subsequently, at the request of the Bank, prepare a report on the incident or accident, and suggest measures to avoid a repeated occurrence. The guide “Response to Environmental, Social, and Occupational Health and Safety incidents for World Bank-financed projects (WB)� must be included as an annex to the Project Operations Manual (POM). 3|Page Environmental and Social Commitment Plan (ESCP): Project: ‘‘Modern and Resilient Agri-Food Chains’’ P173125 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE AGENCY C HALF-YEARLY REPORTS FROM CONTRACTORS In contracts for the execution of on-site infrastructural works, Report on a half-yearly basis to MINECO MINECO (PRONACOM) (who will equipment installation, improvements of primary agricultural (PRONACOM) throughout Project implementation. request reports from contractors production systems, energy saving technology, and other activities of MINECO (PRONACOM) will send these reports to the and supervision firms) environmental and/or social relevance, including for occupational Bank at its request. health and safety, MINECO (PRONACOM) will require contractors to provide half-yearly progress reports to the Project Implementation Unit (PIU). Where applicable, the construction supervision firms will also submit half-yearly reports to the PIU. MINECO (PRONACOM) will submit the half-yearly reports prepared by the contractors and the supervisors when the Bank so requests. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE MINECO will establish and maintain an organizational unit in the PIU, Key staff, that is one environmental expert, one social within PRONACOM, with qualified staff and resources to support the expert, and one gender expert, will be hired within 30 MINECO (PRONACOM) management of environmental and social risks. This unit shall at least days following the effective date of the Project. This include the following experts on a full-time basis: organizational unit shall be maintained for the entire o One (1) environmental expert; Project implementation period. o One (1) social expert, with knowledge of and experience in working with Indigenous Peoples; and o One (1) gender expert. Support staff may be hired, if deemed necessary by MINECO, for the areas of labor, health and safety, indigenous peoples, and other areas relevant to environmental, social, labor, and health and safety management for the Project, in order to ensure that all the environmental and social commitments in this ESCP and in the other Project instruments are implemented, monitored, and reported on. 4|Page Environmental and Social Commitment Plan (ESCP): Project: ‘‘Modern and Resilient Agri-Food Chains’’ P173125 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE AGENCY 1.2 ENVIRONMENTAL AND SOCIAL ASSESSMENT a) Within 90 days following the effective date of the MINECO (PRONACOM) a) Carry out general environmental and social assessment, focused Project. on the priority value chains, as part of the development of the ESMF. b) The ESMPs for each sub-project will be developed after determining each sub-project selected for b) Conduct a specific environmental and social assessment of each financing and before starting the bidding sub-project as part of the development of the Environmental and processes or the activities of said sub-project, as Social Management Plans (ESMPs) and other social instruments the case may be. that are necessary for each sub-project, and obtain the relevant environmental permits, in keeping with the stipulations of the ESMF and in a manner that is acceptable to the Bank. 5|Page Environmental and Social Commitment Plan (ESCP): Project: ‘‘Modern and Resilient Agri-Food Chains’’ P173125 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE AGENCY 1.3 MANAGEMENT TOOLS AND INSTRUMENTS MINECO (PRONACOM) MINECO will ensure that the Project is implemented in accordance with the following requirements, in a manner that is acceptable to the Bank: a) The ESMF shall be developed, consulted on, adopted, and disclosed and shall be a) Develop, consult, adopt, and disclose an Environmental and operating effectively within 90 days Social Management Framework (ESMF), which includes following the effective date of the Project. environmental and social assessment procedures at the sub- project level, as well as guidelines for the preparation of b) Within 90 days following the effective date of Environmental and Social Management Plans (ESMPs) for sub- the Project. They will be implemented projects, as applicable. throughout the entire duration of the Project. b) Develop, consult, adopt, and implement a strategic framework and action plan for gender equality. c) Within 90 days following the effective date of the Project. c) Update the Project Operations Manual (POM) to reference all the instruments, including environmental and social management procedures and processes. d) The ESMPs for each sub-project will be developed after determining each sub- d) Ensure the preparation, dissemination, consultation, adoption, project selected for financing and before and implementation of the ESMP for each sub-project, in keeping starting the bidding processes or the with what is requested and in line with the stipulations of the activities of said sub-project, as the case may ESMF, in a manner that is acceptable to the Bank and in keeping be. They will be implemented throughout the with national legislation. entire duration of each sub-project. 6|Page Environmental and Social Commitment Plan (ESCP): Project: ‘‘Modern and Resilient Agri-Food Chains’’ P173125 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE AGENCY 1.4 MANAGEMENT OF CONTRACTORS / SUPERVISION FIRMS a) Incorporate the relevant aspects of this ESCP, including the a) MINECO (PRONACOM) corresponding environmental and social instruments or plans a) Before starting bidding processes. and the Labor Management Procedures (LMPs), into the environmental, social, health, and safety specifications of the bidding and procurement documents for contractors and supervision firms and in the respective contracts, as applicable. b) Throughout Project implementation. b) MINECO (PRONACOM) b) Ensure that contractors and supervision firms comply with the environmental, social, health, and safety specifications and the codes of conduct of their respective contracts. ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT PROCEDURES a) Develop Labor Management Procedures (LMPs) that are a) The LMPs must be approved and operating MINECO (PRONACOM) acceptable to the Bank and in keeping with national legislation. effectively within 90 days following the effective MINECO (PRONACOM) (with a date of the Project. request to consulting firms, contractors, and supervision b) Throughout Project implementation. firms). b) Implement the LMPs and update them, as necessary. 2.2 COMPLAINTS AND GRIEVANCE REDRESS MECHANISM FOR PROJECT WORKERS a) Within 90 days following the effective date of the a) Develop a grievance redress mechanism for Project workers Project. MINECO (PRONACOM) as part of the LMPs. b) Before starting bidding processes. b) Incorporate the requirements of the grievance redress mechanism for workers from consulting firms, contractors, and supervision firms into the bidding documents and the corresponding contracts. c) Throughout Project implementation. c) Implement the grievance redress mechanism for workers and update it, as necessary. 7|Page Environmental and Social Commitment Plan (ESCP): Project: ‘‘Modern and Resilient Agri-Food Chains’’ P173125 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE AGENCY 2.3 OCCUPATIONAL HEALTH AND SAFETY MEASURES a) For each sub-project, develop specific Occupational Health and a) During the development of each ESMP. MINECO (PRONACOM) Safety (OHS) measures (including measures for emergency preparation and response, as applicable), and include these measures in the corresponding ESMP. MINECO (PRONACOM) b) Incorporate the OHS measures into bidding documents and b) Before starting bidding processes MINECO (PRONACOM) (with a contracts with contractors and supervision firms. request to consulting firms, contractors, and supervision c) Ensure that the OHS measures specified are implemented for each c) Throughout the implementation of each sub- firms). work site/activity. project. ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3.1 MANAGEMENT OF WASTE AND HAZARDOUS MATERIALS: a) Develop and implement waste management measures, including a) The same timeframes as for the development and MINECO (PRONACOM) training for contractors on how to manage waste produced as a implementation of ESMPs, according to action 1.3 result of construction/rehabilitation/equipment installation of this document. works. These measures must be part of the ESMPs that are prepared, in conformity with the ESMF for the sub-projects. b) Develop and implement measures to manage waste from b) The same timeframes as for the development production activities and the processing of value chain products, and implementation of ESMPs, according to in accordance with the stipulations of the ESMF. action 1.3 of this document. c) Develop and implement measures to manage waste linked to investments in sanitary, phytosanitary, and traceability systems for food safety, in accordance with the stipulations of the ESMF. c) The same timeframes as for the development and implementation of ESMPs, according to action 1.3 of this document. 8|Page Environmental and Social Commitment Plan (ESCP): Project: ‘‘Modern and Resilient Agri-Food Chains’’ P173125 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE AGENCY 3.2 EFFICIENCY IN THE USE OF RESOURCES AND THE PREVENTION AND The same timeframes as for the development and MANAGEMENT OF POLLUTION: implementation of ESMPs, according to action 1.3 of MINECO (PRONACOM) this document. Include in the sub-projects’ ESMPs, recommendations on how to encourage efficiency in the use of resources (including energy and water) and measures to prevent and manage pollution. The ESMPs shall also include measures to ensure the climate resilience of sub- projects, in cases where this is applicable. These measures must be viable from the technical and financial points of view (including efficient lighting and cooling, collection, and storage of rainwater integrated into the designs of buildings where seasonal water shortage is a problem, as well as the sustainable use of water and raw materials for construction). Measures will also be taken to build adequate sanitation facilities, including at temporary facilities. Measures will be developed and implemented to manage and eliminate asbestos and lead, where necessary. These measures will form part of the ESMPs for sub-projects, where applicable, and will be prepared in conformity with the ESMF. ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 COMMUNITY HEALTH AND SAFETY: Prepare, adopt, and implement measures and actions to assess and The same timeframes as for the development and MINECO (PRONACOM) manage specific risks and impacts for the community, resulting from implementation of ESMPs, according to action 1.3 of Project activities, including risks associated with change and an this document. increase in road traffic, the behavior of Project workers, the risk of labor influx, and preparation and response to specific emergencies. Include these measures in the sub-projects’ ESMPs, which must be developed in conformity with the ESMF, in a manner that is acceptable to the Bank and in keeping with ational legislation. 9|Page Environmental and Social Commitment Plan (ESCP): Project: ‘‘Modern and Resilient Agri-Food Chains’’ P173125 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE AGENCY 4.2 GENDER-BASED VIOLENCE (GBV) AND SEXUAL EXPLOITATION AND ABUSE (SEA): Incorporate into the ESMF, gender-based violence and sexual The same timeframe as for the development and MINECO (PRONACOM) abuse/exploitation/harassment prevention and response measures, implementation of the ESMP, according to action 1.3 which are proportional to the risks of the Project, including the of this document. mapping of services for victims of gender-based violence, guidelines in the code of conduct for contractors, and adequate treatment in the grievance redress mechanism within the framework of the SEP. 4.3 SECURITY PERSONNEL: The same timeframes as for the development and Develop and implement measures and actions to assess and manage implementation of ESMPs, according to action 1.3 of MINECO (PRONACOM) the risks to the human security of project-affected communities and this document. project workers, which could arise from the use of security personnel. These measures and actions will form part of the ESMPs that will be prepared in conformity with the ESMF. ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT This standard is not relevant. ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES 6.1 BIODIVERSITY RISKS AND IMPACTS Develop and implement measures and actions to avoid, reduce, or The same timeframes as for the development and MINECO (PRONACOM) mitigate the possible impacts of sub-projects on biodiversity and on implementation of ESMPs, according to action 1.3 of the sustainable management of living natural resources. These this document. measures and actions will form part of the ESMPs of the sub-projects, as applicable, and will be prepared in conformity with the ESMF. Project pre-evaluation processes will be implemented to prevent the placement of facilities in or near to natural or critical habitats, protected and/or internationally recognized areas, and to ensure that any residual impact is addressed through mitigation measures specific to the site of the sub-projects. ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES 10 | P a g e Environmental and Social Commitment Plan (ESCP): Project: ‘‘Modern and Resilient Agri-Food Chains’’ P173125 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE AGENCY 7.1. INDIGENOUS PEOPLES’ PLANNING FRAMEWORK: Develop, consult, update, adopt, and disclose an Indigenous Peoples’ The IPPF must be operating effectively within 90 MINECO (PRONACOM) Planning Framework (IPPF), in line with ESS7, in a manner that is days following the effective date of the Project. acceptable to the Bank and in accordance with national legislation. 7.2 INDIGENOUS PEOPLES PLAN: a) Develop, consult, update, adopt, and disclose Indigenous Peoples a) After determining the presence of indigenous MINECO (PRONACOM) Plans (IPPs) in keeping with the requirements of the Indigenous peoples in the sub-project area in the initial study Peoples’ Planning Framework (IPPF) developed for the Project and (screening) and before implementing the sub- in line with ESS7, in a manner that is acceptable to the Bank and in project. accordance with national legislation. b) Throughout the implementation of each sub- b) Implement and monitor the IPPs. project. 7.3 GRIEVANCE REDRESS MECHANISM: a) Develop and adopt the modalities for the grievance redress a) Within 90 days following the effective date of the MINECO (PRONACOM) mechanism for indigenous peoples in the IPPF. Project. b) Describe these modalities in more detail in the respective IPPs (if b) During the development of the IPPs. the grievance redress mechanism is different from that established in the context of ESS10). c) Implement modalities for the grievance redress mechanism for c) Throughout the implementation of each sub- indigenous peoples. project. ESS 8: CULTURAL HERITAGE 11 | P a g e Environmental and Social Commitment Plan (ESCP): Project: ‘‘Modern and Resilient Agri-Food Chains’’ P173125 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE AGENCY 8.1 CHANCE FINDS a) Develop and adopt the chance finds procedure in the ESMF. a) Same timeframe as for the development of the a) MINECO (PRONACOM) ESMF in accordance with action 1.3 of this b) Develop and adopt the chance finds procedure in the ESMP document. b) MINECO (PRONACOM) prepared for each sub-project, in keeping with the ESMF. b) During the development of the ESMPs. c) MINECO (PRONACOM) with a c) Implement the chance finds procedures for each ESMP. request to consulting firms, c) Throughout the implementation of each sub- contractors, and supervision project. firms. . ESS 9: FINANCIAL INTERMEDIARIES This standard is not relevant. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PLAN (SEP) MINECO (PRONACOM) a) Revise, update, and disclose the final version of the a) Within 90 days following the effective date of the Stakeholder Engagement Plan (SEP). Project. b) Implement the SEP. b) Throughout Project implementation. c) Report on the implementation of the SEP. c) Half-yearly as part of the reports to the Bank. 10.2 PROJECT-LEVEL GRIEVANCE REDRESS MECHANISM MINECO (PRONACOM), with a a) Implement the grievance redress mechanism included in the a) From the start of the implementation and request to consulting firms, SEP. throughout Project implementation. contractors, and supervision firms. b) Report on the implementation of the grievance redress b) Every 3 months and as part of the half-yearly mechanism. reports to the Bank. CAPACITY BUILDING (TRAINING) 12 | P a g e Environmental and Social Commitment Plan (ESCP): Project: ‘‘Modern and Resilient Agri-Food Chains’’ P173125 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE AGENCY FC1 a) Develop a Project training plan for Project personnel, in a a) Within 90 days following the effective date of the form that is acceptable to the Bank, for environmental and Project. MINECO (PRONACOM) social instruments (ESMF, SEP, LMP, IPPF), the requirements of the ESCP, the monitoring of the Project’s environmental and social standards and requirements, and the gender aspects. b) Initiate in the first year of implementation and b) Implement the plan and update it based on the emerging update annually. needs of the Project, including the schedule of training activities planned for the following year. c) Every 3 months and as part of the half-yearly c) Report on the implementation of the training plan. reports to the Bank. 13 | P a g e