INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Public Disclosure Copy Report No.: ISDSC4986 Date ISDS Prepared/Updated: 02-Aug-2013 Date ISDS Approved/Disclosed: 05-Aug-2013 I. BASIC INFORMATION A. Basic Project Data Country: Lao People's Democratic P144330 Project ID: Republic Project Name: Second Laos Environment and Social Project (P144330) Task Team Jean-Michel G. Pavy Leader: Estimated 28-Mar-2014 Estimated 15-Sep-2014 Appraisal Date: Board Date: Managing Unit: EASTS Lending Investment Project Financing Instrument: Sector(s): Forestry (20%), Other Mining and Extractive Industries (20%), Hydropower (20%), General agriculture, fishing and forestry sector (20 %), General water, sanitation and flood protection sector (20%) Theme(s): Biodiversity (20%), Environmental policies and institutions (20%), Pollution management and environmental health (20%), Other enviro nment and natural Public Disclosure Copy resources management (20%), Water resource management (20%) Financing (In USD Million) Total Project Cost: 24.50 Total Bank Financing: 15.00 Total Cofinancing: Financing Gap: 0.00 Financing Source Amount BORROWER/RECIPIENT 1.00 International Development Association (IDA) 7.50 IDA Grant 7.50 AUSTRALIA Australian Agency for International 8.50 Development Total 24.50 Environmental B - Partial Assessment Category: Is this a No Repeater project? B. Project Objectives 19. Comparable to the LENS PDO, a slightly modified PDO is proposed for LENS 2: To strengthen the financing and management of environmental and social issues associated with more Public Disclosure Copy sustainable use of forest and water resources. C. Project Description The Project will be implemented through 4 components. Components 1, 2 and 3 are entirely executed through medium size sub-grants from $50,000 to $500,000. Each component targets one of the windows defined in the EPF Decree. The list of sub-grants for the first two years-- called “Portfolio 1”--will be adopted during Project preparation but a tentative list is available. Each sub- grant will be designed by its promoter (to become beneficiary) with the assistance of EPF. Once EPF consider the subproject ready, it will join the list of “Portfolio 1” which will be appraised by the Bank. The portfolio for years 3 to 6 of the sub-grants will be identified, prepared and appraised during implementation. Component 1. Policy Implementation and Capacity Enhancement (PICE Window). This component is implemented through three subcomponents. Sub-component 1.1 Institutional Capacity and Strengthening - The subcomponent is expected to fund sub-grants that help improve the strategic, planning, technical and financial capacity of environmental and social institutions or ministerial departments. For Portfolio 1, the following sub- grants have been tentatively identified: (a) Coordination and facilitation of Environment and Natural Resources Working Group and the design of MONRE Natural Resource and Environment Sector Plan 2016-2020 by the Department of Planning and Cooperation (DPC) of MoNRE, (b) development and dissemination of the Environment Protection Law regulations by the Department of Environment Quality and Promotion (DEQP) MoNRE, (c) final design, adoption and dissemination of the legal framework for EPF fund raising, and investment by the Prime Minister’s Office, and (d) Awareness building and training of National Assembly members with information relevant to the natural Public Disclosure Copy resources, environment and social sectors.. Sub-component 1.2 Human Resource Development - This subcomponent is expected to fund sub- grants that help improve the capacity of Laos’ academic institutions to produce environment and social safeguard practitioners and to improve the skills of professionals already in the job world. For Portfolio 1, the following sub-grants have been tentatively identified: (a) Design and adoption of MoNRE Structure and Staffing Plan by Department of Personnel and Human Resources (DPHR) MoNRE, (b) support to NUOL Social Science Faculty for strengthening its curriculum related to involuntary resettlement, and preparing short certificate courses for current staff of public departments involved in involuntary resettlement, (c) support to NUOL Faculty of Forestry for developing short courses on protected area planning and management to be delivered to all staff from DFRM and PFRM, (d) support to NUOL Faculty of Environment Science to strengthen it bachelor curriculum in environment impact assessment and to prepare short certificate courses on EIA to be delivered to all relevant staff from DESIA, PONRE and other ministerial departments, and (e) strengthening curriculum related to Integrated Water Resources Management (IWRM) and preparing short Courses on IWRM to be Delivered to all relevant staff from the Department of Water Management (DWRM) MonRE. Sub-component 1.3 Environment and Social Safeguards Strengthening – This subcomponent is expected to fund sub-grants that help improve the capacity of public institutions to monitor the social and environmental impacts of industrial, hydro, mining and transport projects. For Portfolio 1, the following sub-grants have been tentatively identified: (a) support to ECC and grievance monitoring by DESIA, PONRE and DONRE in the Boulikhamxay and Khammouane provinces, (b) support to Public Disclosure Copy the development of an Investment Project database and grievance monitoring system in Savannakhet Province and an additional province, (c) support the improvement and dissemination guidelines for Standard Environmental and Social Obligations (SESO) guidelines in hydro, and their development in mining and transport and the design, test and dissemination of guidelines for voluntary biodiversity offsets by DESIA. Component 2 Community and Biodiversity Investments (CBI Window) - This component is expected to fund sub-grants that help improve the capacity of forest resources institutions, civil society and communities to work together to manage forest resources in protection and conservation forests. For Portfolio 1, the following sub-grants have been te ntatively identified: (a) Support to the Community Conservation Network in four provinces through PFRM/PONREs, (b) provincial protected areas and protection forests planning and management in four provinces, (c) fight against forest resource crimes in 2 provinces by the Provincial Office of Forest Inspection (POFI) and provincial customs department. Component 3 Water Resources Management (WRM Window) - This component is expected to fund sub-grants that help improve the capacity of forest and water resources institutions, civil society and communities to collaborate to manage watersheds and water resources. For Portfolio 1, the following sub-grants have been tentatively identified: (a) support to River Basin planning by the Nam Theun Nam Kading River Basin Committee, (b) support to PONRE in 1 province to organize the working groups and initiate the work toward the planning of another river basin, (c) support to existing small scale fisheries initiatives in tributaries of secondary rivers in 2 provinces, (d) design and test of a “comprehensive” environment monitoring system of tributary of secondary rivers by the Water Resources Management Department (MONRE) and PWRM/PONRE in 1 province. Component 4 Project Administration and Monitoring – This component does not fund sub-grants but Public Disclosure Copy supports EPF management of the Project. It will fund the following activities (a) EPF incremental staff and capacity building for Project implementation, (b) all fiduciary dimensions related to Project implementation such as procurement, financial management, monitoring and evaluation, (c) technical assistance to support the following functions: (i) subproject design, screening and implementation support, (ii) safeguard review monitoring including possibly third party monitoring and (iii) design and implementation of a communication strategy and (iv) monitoring and evaluation, (d) functioning of the Project Steering Committee, and (e) internal and external audits. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The project activities will focus on the three LENS1 provinces (Bolikhamxay, Khammouane, Savannakhet) and six new provinces. Project sites are expected to be scattered in all three parts in the country. Physical characteristics of the area ranges from mountainous landscape in the north, plateau in the east along the Vietnamese border that are rich in water resources as tributaries of Mekong, forests and biodiversity to flat land along the Mekong river in the west. Project area covers largely the National Protect Areas, a number of provincial and district protected areas in these provinces. Sub-grants under the Component 2 CBI window may involve some restriction of natural resources uses. These areas are inhabited by a number of ethnic groups, which could potentially meet the definition of Indigenous People Policy (OP/BP 4.10). E. Borrowers Institutional Capacity for Safeguard Policies Although some institutions have experience with the World Bank projects, most of them have limited capacity to manage and implement the Bank’s safeguards policies and even the government ESIA- Public Disclosure Copy related legislations, which are largely consistent with the Bank’s OP/BP 4.01 and OP/BP 4.12. This has been exacerbated by the on-going lack of qualified human resources and expertise in the area of ESIA in the country. The staff of EPF, especially the province facilitators and the sub-grant technical assistants, will receive safeguard training. Some of the potential beneficiaries, e.g. Department of Environment and Social Impact Assessment (DESIA) are staffed with safeguard specialists. Others, such as international environmental NGOs have safeguard experience. One of the project tasks is to help the National University of Laos (NUOL) develop safeguard curriculum. F. Environmental and Social Safeguards Specialists on the Team Viengkeo Phetnavongxay (EASTS) Sybounheung Phandanouvong (EASTS) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes Activities under the Component 1 window and BP 4.01 Component 4 will mainly include capacity enhancement, networking activities, development and implementation of legal frameworks, procurement of office equipment, small scale renovations and expansion of office facilities. However, sub-component 1.3 will involve providing advice or support to safeguards Public Disclosure Copy related legislation, instruments or capacity building activities that subsequently result in physical footprints. In addition, sub-grants under the Component 2 and Component 3 windows especially those related to strengthening of the protected areas, forests and water resource management, may involve the construction of small buildings or other structures such as offices. They may also involve communities and may restrict access to and use of the resources. For all these reasons, the Bank OP/BP 4.01 is triggered. Sub-component 1 does not require any specific or separate safeguards instruments. Relevant safeguards policies (objectives, principles and applicable aspects) will be integrated directly into these activities. For Components 2 and 3 windows, however, environmental and social considerations will be incorporated into the Environment and Social Public Disclosure Copy Management Framework (ESMF) and the subproject Environmental and Social Management Plan (ESMP). Natural Habitats OP/BP 4.04 Yes The project may support the development of conservation legislation, regulation or guidelines that will improve management of natural habitats and protected areas. Sub-grants under the Component 2 windows especially those related to strengthening of the protected areas and forests management, may involve the construction of small buildings or other structures such as offices that may affect natural habitats. It is expected that sub-grants will not cause any significant or irreversible adverse impacts on natural habitats but will protect and improve them. Because sub-grants will involve some interventions on natural habitat the Bank OP/BP 4.04 is triggered. Subgrant proposals for all protected areas will include an ESMP based on the ESMF, describing measures to avoid or mitigate impacts on natural habitats. Forests OP/BP 4.36 Yes The project will not support any logging, but may fund subprojects on improving forest management (e.g. conservation and protection forest); the activities will not cause any negative Public Disclosure Copy or adverse impacts on forest areas; the Bank OP 4.36 is trigged, because project activity may have an area influence on the forest and forest dependent communities. If forests and/or forest dependent communities are potentially impacted by a sub-grant, its proposals will include an ESMP that mitigates potential adverse impact. Potential impacts on forest dependent persons will also be included in the ESMF. Pest Management OP 4.09 No Project will not involve any procurement or use of pesticide. Physical Cultural Resources OP/ Yes The project is not expected to have negative BP 4.11 impacts on physical cultural resources. However, project will provide sub-grants that will be designed during implementation and may include the area of influence to physical culture resources, which could include natural features or landscapes that have historical, religious or other cultural significance. Thus, the Bank OP/BP 4.11 is triggered. If physical cultural property is potentially impacted by a Public Disclosure Copy sub-grant, its proposals will include a Physical Cultural Management Plan as part of the ESMP. Potential impacts on PCRs will also be included in the ESMF, including chance find procedures. Indigenous Peoples OP/BP 4.10 Yes The project will provide sub-grants that may involve a number of ethnic groups, which could potentially meet the definition of Indigenous People Policy; the Bank policy OP/BP 4.10 is therefore triggered. Under Component 2, sub- grants to improve the management of protected areas may result in limited access to land, forest and water resources by some ethnic groups and may affect their livelihoods. If ethic groups are present in the sub-grant’s geographic area, its proposals will include an Ethnic Group Development Plan (EGDP) that mitigates potential adverse impact. As part of the ESMF, an Ethnic Group Planning Framework will be developed to outline compliance to the policy requirements. Involuntary Resettlement OP/BP Yes The project will provide sub-grants, which may 4.12 acquire some private land; the Bank policy OP/ BP 4.12 is therefore triggered. The sub-grants under the Component 2 and Component 3 windows especially those related to Public Disclosure Copy strengthening of the protected areas, forests and water resource management, may involve the restrictions on the use of the resources to stakeholder communities. If a sub-grant involves land acquisition, its proposals will include an Resettlement Action Plan (RAP). If a sub-grant involves restriction of access to natural resources in a protected area, its proposals will include an Action Plan in conformity with a prepared Process Framework. Safety of Dams OP/BP 4.37 No The Project will not involve the construction or rehabilitation of any dam. Projects on International No The Project will not take place in or along Waterways OP/BP 7.50 international water way or impact such water way. Projects in Disputed Areas OP/BP No There is no disputed area in the provinces 7.60 selected by the Project. When a new province is selected the Bank will verify that it does not include disputed territory. Public Disclosure Copy III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 15-Mar-2014 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: To make sure that the negative environmental and social impacts do not occur and that the communities and ethnic groups are aware of and have access to the potential benefits from the project, EPF will prepare an Environmental and Social Management Framework (ESMF) that will guide the screening for environmental and social impacts, procedures for consultations and the preparation of an Environmental and Social Management Plan (ESMP) for the subgrants. This ESMF will build on the lessons learned from safeguard implementation during LENS 1. Lessons learned will be identified during the LENS 1 ICR Mission in September 2013.. Annexed to the ESMF are four frameworks: (1) a Resettlement Policy Framework to guide the design of small Resettlement Action Plan for small land acquisition if such option is unavoidable, (2) an Ethnic Group Development Framework (EGDF) to guide the design of the Ethnic Group Development Plan (EGDP), (3) a Process Framework (PF) to guide the design of action plans to compensate communities from the loss of access to natural resources in protected areas, and (4) good practice procedures for environmental and social management of small civil works. The design of the ESMF will begin in September and be completed in December 2013 ahead of the appraisal scheduled for April 2014. All sub-grants prepared before appraisal (Portfolio 1) will contain all relevant safeguard materials related to the policies triggered. In addition, relevant safeguards policies (objectives, principles and applicable aspects) will be integrated directly into sub-component activities as per project design. IV. APPROVALS Public Disclosure Copy Task Team Leader: Name: Jean-Michel G. Pavy Approved By: Regional Safeguards Name: Date: Coordinator: Sector Manager: Name: Julia M. Fraser (SM) Date: 05-Aug-2013 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.