Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD948 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR13.1 MILLION (US$20.0 MILLION EQUIVALENT) TO THE CENTRAL AFRICAN REPUBLIC FOR AN EMERGENCY FOOD CRISIS RESPONSE AND AGRICULTURE RE-LAUNCH PROJECT FEBRUARY 21, 2014 Agriculture, Rural Development and Irrigation (AFTA2) Sustainable Development Department Country Department AFCC1 Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. i CURRENCY EQUIVALENTS (Exchange Rate Effective January 31, 2014) Currency Unit = CFA Francs CFA Francs 0.0021 = US$1 US$1.5300 = SDR 1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ACF Action Contre la Faim Internationale (Action Against Hunger International/ACF International) AGETIP Agence d’Exécution des Travaux d’Intérêt Public (Project Implementing Entity) BSF Blanket Supplementary Feeding CAR Central African Republic CQS Selection based on Consultants’ Qualifications CPS Country Partnership Strategy CRS Catholic Relief Services DSRP2 Document de Stratégie de Réduction de la Pauvreté, deuxième phase (Second Poverty Reduction Strategy Paper) EA Environmental Assessment ECCAS Economic Community of Central African Countries EMP Environmental Management Plan ESF Emergency School Feeding ESIA Environmental and Social Impact Assessment ESMA Environmental and Social Mitigation Assessment ESMF Environmental and Social Management Framework ESMP Environmental and Social Mitigation Plan ESSAF Environmental and Social Screening and Assessment Framework FAO United Nations Food and Agriculture Organization FFS Farmer Field Schools approach FM Financial Management FMFA Financial Management Framework Agreement FSC Food Security Cluster GAM Groupements d’Agri-Multiplicateurs (Seed Production Groups) GDP Gross Domestic Product HDI Human Development Index ICB International Competitive Bidding ICRA Institut Centrafricain de Recherches Agronomiques (Central African Institute for Agricultural Research) IBRD International Bank for Reconstruction and Development IDPs Internally Displaced People FMIS Financial Management Information System ii IFRs Interim Financial Reports IPF Investment Project Financing IPP Indigenous Peoples Plan ISDS Integrated Safeguards Data Sheet LCS Least-Cost Selection M&E Monitoring and Evaluation MDGs Millennium Development Goals MEF Ministry of Environment and Forestry MISCA Mission Internationale de Soutien à la Centrafrique sous Conduite Africaine (The African-led International Support Mission to the Central African Republic) MIRA Multi-sectorial Initial Rapid Assessment NAFSNIP National Agricultural, Food Security and Nutrition Investment Program NCB National Competitive Bidding NGOs Non-Governmental Organizations CIT Coordination and Implementation Team PDO Project Development Objective PLW Pregnant and Lactating Women PMP Pest and Pesticide Management Plan PP Procurement Plan PPE Personal Protective Equipment PRGF Programme de Réforme Globale des Finances Publiques (Public Finances Reform Program) RAP Resettlement Action Plan REPROSEM Réseau des Producteurs-Multiplicateurs de Semences (Seed Producers Network) SFB Selection under a Fixed Budget SFP Safeguard Focal Point SDRASA Stratégie de Développement Rural, l’Agriculture et la Sécurité Alimentaire (Rural Development, Agriculture and Food Security Strategy) SMART Standardized Monitoring and Assessment of Relief and Transitions TSF Targeted Supplementary Feeding UN United Nations UNICEF United Nations International Child and Enfant Fund WBG World Bank Group WFP World Food Program WPB Work Plan and Budget Regional Vice President: Makhtar Diop Country Director: Gregor Binkert Sector Director: Jamal Saghir Sector Manager: Severin Kodderitzsch Task Team Leader: Manievel Sene iii CENTRAL AFRICAN REPUBLIC Emergency Food Crisis Response and Agriculture Re-launch Project TABLE OF CONTENTS STRATEGIC CONTEXT .............................................................................................................1  A.  Country Context ............................................................................................................ 1  B.  Situations of Urgent Need of Assistance and Capacity Constraints ............................. 2  C.  Sectoral and Institutional Context................................................................................. 3  D.  Higher Level Objectives to which the Project Contributes .......................................... 4  PROJECT DEVELOPMENT OBJECTIVES ............................................................................4  A.  PDO............................................................................................................................... 4  B.  Project Beneficiaries and targeted areas of interventions ............................................. 5  C.  PDO Level Results Indicators ....................................................................................... 5  PROJECT DESCRIPTION ..........................................................................................................5  A.  Project Components ...................................................................................................... 6  B.  Project Financing .......................................................................................................... 7  Table 1: Project cost and financing..................................................................................... 7  C.  Lessons Learned and Reflected in the Project Design .................................................. 7  IMPLEMENTATION ...................................................................................................................8  A.  Institutional and Implementation Arrangements .......................................................... 8  B.  Results Monitoring and Evaluation .............................................................................. 9  C.  Sustainability............................................................................................................... 10  KEY RISKS AND MITIGATION MEASURES ......................................................................10  A.  Risk Ratings Summary Table ..................................................................................... 10  B.  Overall Risk Rating Explanation ................................................................................ 11  APPRAISAL SUMMARY ..........................................................................................................11  A.  Economic and Financial Analysis ............................................................................... 11  B.  Technical ..................................................................................................................... 12  C.  Financial Management ................................................................................................ 12  D.  Procurement ................................................................................................................ 13  E.  Safeguards ................................................................................................................... 14  iv ANNEX 1: Results Framework and Monitoring ......................................................................16  ANNEX 2: Detailed Project Description....................................................................................18  ANNEX 3: Implementation Arrangements ...............................................................................22  ANNEX 4: Disclosable Operational Risk Assessment Framework (ORAF) ..........................36  ANNEX 5: Implementation Support Plan .................................................................................39  ANNEX 6: Environmental and Social Screening and Assessment Framework ....................41  v . PAD DATA SHEET Central African Republic CAR Emergency Food Crisis Response and Agriculture Re-launch Project (P149512) PROJECT APPRAISAL DOCUMENT . AFRICA AFTA2 Report No.: PAD948 . Basic Information Project ID EA Category Team Leader P149512 B - Partial Assessment Manievel Sene Lending Instrument Fragile and/or Capacity Constraints [ X ] Investment Project Financing - Fragile States Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date 12-Mar-2014 30-Mar-2015 Expected Effectiveness Date Expected Closing Date 04-Jun-2014 30-Sep-2015 Joint IFC No Sector Manager Sector Director Country Director Regional Vice President Severin L. Kodderitzsch Jamal Saghir Gregor Binkert Makhtar Diop . Borrower: Central African Republic Responsible Agency: World Food Program (WFP) Contact: Manoj Juneja Title: Assistant Executive Director Telephone No.: 39-066-513-2885 Email: manoj.juneja@wfp.org Responsible Agency: Food and Agriculture Organization (FAO) Contact: Dominique Burgeon Title: Director, Emergency and Rehabilitation Division Telephone: 39-065-705-3803 Email: dominique.burgeon@fao.org vi . Safeguards Deferral (from Decision Review Decision Note) Will the review of Safeguards be deferred? [ X ] Yes [ ] No Project Financing Data(in USD Million) [ ] Loan [ ] Grant [ ] Guarantee [X] Credit [ ] IDA Grant [ ] Other Total Project Cost: 20.00 Total Bank Financing: 20.00 Financing Gap: 0.00 . Financing Source Amount BORROWER/RECIPIENT 0.00 International Development Association (IDA) 20.00 Total 20.00 . Expected Disbursements (in USD Million) Fiscal Year FY14 FY15 FY16 Annual 16.00 4.00 0.00 Cumulative 16.00 20.00 20.00 . Proposed Development Objective(s) The Project Development Objective (PDO) is to protect and rebuild livelihoods, human capital, particularly of children, and to re-launch the productivity of the agriculture sector. . Components Component Name Cost (USD Millions) Human Capital Protection and Livelihood Assistance 12.00 Re-launch of the productivity of the agriculture sector 8.00 . Institutional Data Sector Board Agriculture and Rural Development . Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co-benefits % Co-benefits % Agriculture, fishing, and forestry Crops 80 Agriculture, fishing, and forestry Animal production 10 Agriculture, fishing, and forestry General agriculture, 10 vii fishing and forestry sector Total 100 I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information applicable to this project. . Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Rural development Global food crisis response 100 Total 100 . Compliance Policy Does the project depart from the CAS in content or in other significant Yes [ ] No [ X ] respects? . Does the project require any waivers of Bank policies? Yes [ ] No [X] Have these been approved by Bank management? Yes [ ] No [ ] Is approval for any policy waiver sought from the Board? Yes [ ] No [X] Does the project meet the Regional criteria for readiness for implementation? Yes [ X ] No [ ] . Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 X Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous Peoples OP/BP 4.10 X Involuntary Resettlement OP/BP 4.12 X Safety of Dams OP/BP 4.37 X Projects on International Waterways OP/BP 7.50 X Projects in Disputed Areas OP/BP 7.60 X . Legal Covenants Name Recurrent Due Date Frequency Dated covenant - Safeguards instruments 03-Sep-2014 Description of Covenant viii The Recipient, through AGETIP (Project Implementing Entity), shall prepare the ESMF, ESMP, PMP, ESMA and IPP, each in form and substance satisfactory to the Association, and each consulted upon and disclosed in accordance with the Policies of the Association. . Conditions Name Type AGETIP Subsidiary Agreement Effectiveness Description of Condition The AGETIP Subsidiary Agreement has been executed on behalf of the Recipient and AGETIP. Team Composition Bank Staff Name Title Specialization Unit Lynn R. Brown Consultant Food Policy Specialist AES Juvenal Nzambimana Senior Operations Senior Operations AFTA1 Officer Officer Lucienne M. M'Baipor Senior Social Senior Social AFTCS Development Specialist Development Specialist Evelyne Huguette Team Assistant Team Assistant AFMCF Madozein Marie Jeanne Senior Executive Operations and quality AFTA2 Uwanyarwaya Assistant Siobhan McInerney- Senior Counsel Senior Counsel LEGAM Lankford Aissatou Diallo Senior Finance Officer Senior Finance Officer CTRLA Kouami Hounsinou Senior Procurement Senior Procurement AFTPW Messan Specialist Specialist Emeran Serge M. Senior Environmental Senior Environmental AFTN1 Menang Evouna Specialist Specialist Manievel Sene Senior Rural Team Leader AFTA2 Development Specialist Lova Niaina Procurement Specialist Procurement AFTPE Ravaoarimino Kolie Ousmane Maurice Sr Financial Financial Management AFTMW Megnan Management Specialist Melissa C. Landesz Operations Officer Safeguards AFTSG Non Bank Staff Name Title Office Phone City . Locations ix Country First Administrative Location Planned Actual Comments Division Central African Republic Ouaka Ouaka X Central African Republic Mbomou Mbomou X Central African Republic Basse-Kotto Basse-Kotto X Central African Republic Ouham-Pende Prefecture de l' X Ouham-Pende Central African Republic Ouham Ouham X Central African Republic Ombella-Mpoko Ombella-Mpoko X Central African Republic Ombella-Mpoko Ombella-Mpoko X Central African Republic Nana-Mambere Prefecture de la X Nana-Mambere Central African Republic Lobaye Lobaye X Central African Republic Lobaye Lobaye X Central African Republic Kemo Prefecture de la X Kemo Central African Republic Nana-Grebizi Prefecture de la X Nana-Grebizi Central African Republic Bangui Commune de X Bangui x I. STRATEGIC CONTEXT A. Country Context 1. The Central African Republic (CAR) has been experiencing upheaval since December 2012. A rebel coalition known as Séléka, which had initially threatened to take over the capital city, Bangui, signed a cease-fire and political agreement with the Government in January 2013 (the “Libreville 2” agreements) and eventually carried out a coup in March 2013 which forced the then President to flee the country. Under the aegis of the Economic Community of Central African Countries (ECCAS), a transitional government was entrusted with restoring law and order and paving the way for democratic elections within 18 months. However, the acts of brutality by various rebel groups and lack of Government control over armed elements led to clashes and violence in the country which have, since August 2013, led to the displacement of large numbers of the population, and to a growing humanitarian crisis. 2. In the face of the deteriorating situation, the international community increased its mobilization during the Fall of 2013, including through several UN Security Council consultations and meetings that culminated with Resolution 2127 of December 5, 2013 which provided an umbrella for the intervention of French forces and the establishment of an AU-led military presence, the African-led International Support Mission to the Central African Republic (MISCA). As the unfolding of the transition in 2013 had resulted in a loss of legitimacy of the Séléka leadership and of the Transition Government, the January 10, 2014 ECCAS summit accepted the resignation of the Head of State of the Transition and of the Prime Minister, opening the way to a new political transition. The National Transition Council, the legislative body, elected a new Head of State, Ms. Samba-Panza, until then mayor of Bangui and a respected personality close to civil society. The appointment of the new Prime Minister and of an inclusive Government, on January 27-28, 2014, constituted a positive signal. These developments were welcomed by the international community, with: (i) donors meeting in Brussels on January 20, 2014 and pledging about US$500 million to support recovery and transition in CAR; (ii) a new Security Council resolution on January 28, 2014, backing up the transition, and authorizing the deployment of additional troops from European countries; (iii) additional consultations taking place on the margins of the AU summit (January 30-31, 2014). 3. The Bank responded actively to the CAR developments, initially in a crisis management mode: (i) the Bank’s office was evacuated twice, on December 26, 2012 and March 25, 2013; it was reopened in early November, 2013 with limited staff presence; (ii) OP7.30 was triggered on March 25, 2013, and remains in effect, although a selective resumption of disbursements was authorized in November 2013 following an Assessment Mission undertaken in September 2013; (iii) in the meantime, active portfolio management continued, with selected disbursements authorized in exceptional cases (e.g. in order not to interrupt the fabrication of turbines under the Energy project), three project extensions granted in June 2013, and numerous implementation support missions with counterpart teams going to Yaoundé. 4. More recently, in the light of the new developments both in CAR and internationally, in January 2014, Bank management briefed the Board on a US$100 million emergency response for CAR, drawing on the restructuring of the portfolio, the unallocated IDA16 balance, and the first year – with frontloading – of the IDA17 allocation. 1 B. Situations of Urgent Need of Assistance and Capacity Constraints 5. As a result of last year’s instability and violence, OCHA (UN’s Office for Coordination of Humanitarian Affairs) estimates that about one million persons are internally displaced, including over 500,000 in the capital city of Bangui alone. About 2.6 million people are currently estimated to require humanitarian assistance and 1.3 million people are food insecure. The surge in violence in December 2013 occurred after months of steady deterioration in the political and security context in CAR that led to depressed economic activity, loss of administrative capacity and declining social service provision. The results of the Multi-sectorial Initial Rapid Assessment (MIRA) undertaken in January 2014 by the United Nations Food and Agriculture Organization (FAO), World Food Program (WFP) and other partners, indicate that the average number of meals has declined to a single meal a day in the assessed areas. Household food stocks are running out, indicating that households will rely on humanitarian assistance or purchases at least until the next harvest in mid-2014. Food prices across the country have increased substantially due to disruption of transportation services, markets and trade. Almost all communities report not having enough seed to plant for the next agricultural season, which raises the risk of a very poor agricultural harvest in 2014. 6. The proposed operation would address two broad groups of concern in CAR: (i) increasing number of Internally Displaced People (IDP); and (ii) severely food insecure people who require food and nutrition support in the immediate term, and moderately food insecure people at risk of falling into severe food insecurity as food stocks and purchasing power are further exhausted over the coming months. More than 80 percent of the CAR’s working population relies on agriculture, but years of conflict and instability have stifled economic growth and reduced crop and livestock production. The security situation remains uncertain in rural areas as violence continues to displace people. Those who have managed to return to their villages, find their homes and farms in ruins. The success of the main 2014 maize, sorghum and millet planting seasons, starting in March and May respectively, will be a turning point for food security. 7. In this context, an emergency operation is being proposed to address targeted food needs of vulnerable population groups and prepare to re-launch the agriculture sector in CAR. The proposed CAR Emergency Food Crisis Response and Agriculture Re-launch Project for an equivalent amount of US$20 million will aim at (i) restoring livelihood activities and assets destroyed by the ongoing conflicts while addressing the severe food crisis in the country; and (ii) contributing to efforts to revitalizing the country’s agriculture sector ahead of the next planting season which starts in March 2014. 8. The WFP has appealed for US$107 million in aid to CAR, but reported that it has received only a fraction of that amount since the start of the year. WFP has adopted a phased approach to respond to the CAR crisis. In the first phase from January to April 2014, WFP will focus primarily on providing assistance to those in immediate need, by scaling up an integrated food distribution and blanket supplementary feeding package for the most vulnerable, and ensuring targeted nutrition support and school meals. In the second phase, from May to August 2014, an expanded, integrated food and nutrition safety net will be introduced for the moderately 2 food insecure people during the lean season, and support to basic health and education services will be expanded. WFP is closely and continuously monitoring the situation with humanitarian partners on the ground and will maintain flexibility to adapt beneficiary figures, targeting, and duration of assistance as necessary. 9. FAO’s strategic response plan in CAR aims at an immediate livelihood emergency assistance and distribution of seeds and agricultural tools targeting the most vulnerable population groups who are suffering the consequences of armed conflicts. FAO also aims at providing food production assistance to severely food insecure population groups (including refugees and IDPs) as long as required, with a particular emphasis on support during the agriculture season. Saving the 2014 agricultural campaign, which will start in April, will be essential to prevent further deterioration of food insecurity. FAO interventions include activities to (i) improve access to essential agricultural inputs (seeds and tools) to increase food production; (ii) linking relief, rehabilitation and development by quickly increasing purchasing power in rural and suburban areas through cash transfers and cash-for-work activities; and (iii) rebuilding destroyed infrastructure (such as storage facilities). 10. The proposed CAR Emergency Food Crisis Response and Agriculture Re-launch Project will finance critical activities under the WFP overall response program and FAO’s strategic response plan in targeted areas in CAR. 11. The proposed operation meets the emergency provisions of OP/BP 10.00 (IPF) paragraph 11. The agriculture re-launch component of this project does not raise any particular issue in terms of complying with OP2.30 (Development Cooperation and Conflict). The proposed project will finance food expenditures which will be targeted towards selected beneficiaries by setting a prioritization list within the contract with WFP on the use of WB funds. A specific monitoring system will be implemented to minimize distribution to populations outside the target groups. The proposed approach complies with OP2.30 to the extent that it allows: (i) reducing or preventing mental retardation and poor school performance; (ii) enhancing children’s growth and development; (iii) reducing adverse pregnancy outcomes; and (iv) safeguarding productive human capital which will be key to re-launching agriculture production in the country, among other development goals. C. Sectoral and Institutional Context 12. The agro-rural sector is the engine of the CAR economy, supporting 76 percent of the population and contributing to 52 percent of the Gross Domestic Product (GDP). However, only 5 percent of agricultural land is cultivated, relying on rudimentary techniques and mainly for subsistence. The average size of agricultural plots is 0.5 ha per household. More than 80 percent of the country’s working population relies on agriculture, but years of conflict and instability have stifled economic growth and reduced crop and livestock production. The security situation remains uncertain in rural areas as violence continues to displace people. 13. The assessments carried out in 2013 and, through MIRA, in early January 2014 show that the impact of the crisis on the agricultural sector has been important, in particular because of: (i) loss, destruction or plundering of food and seeds stocks and agricultural assets ; (ii) lack of 3 presence of decentralized governmental or para-governmental technical services (technical backstopping and research structures); and (iii) lasting distortion of markets and exchanges leading to the fall of food prices in the rural areas and therefore a loss in income for farmers, together with a rise in prices in the urban areas and for imported staple goods (sugar, milk, etc.) (MIRA, January 2014). Other limiting factors to rapid food production and food security recovery are the lack of access to credit-saving systems, the loss of producers’ capital, the utilization of non-adapted agricultural practices and the lack of assets, infrastructure and conservation and storing materials. D. Higher Level Objectives to which the Project Contributes 14. This project contributes to a fast response in a situation of conflict and violence, building off the experience outlined in the World Development Report of 2011 on security and development. In particular, it leverages key UN capacities and greater access to preserve human capital and prevent further deterioration of conditions in the CAR, with potentially vast implications for the Central African sub-region. This will be important in sending early signals of normalization as emergency recovery interventions go in hand with expanded peacekeeping. 15. More broadly, the project will contribute to the Bank’s twin goals of ending extreme poverty and promoting shared prosperity. In order to withstand shocks—from conflicts, violence, vulnerabilities and the impacts of climate change and natural disasters, or economic crisis— fragile countries need strengthened resilience, inclusion, and social cohesion. The Bank’s strategy recognizes that FCS (Fragile and Conflict-affected States) represent a special type of institutional fragility, one that requires combining support for developing basic public institutions—often from scratch—with economic and social development and, in some cases, with peacekeeping and security efforts. The project will aim at alleviating poverty by targeting beneficiaries who are affected by extreme poverty, with a particular emphasis on women, children and vulnerable groups, and will contribute to boosting rural income growth through the revitalization of agriculture and rehabilitation of rural infrastructure. II. PROJECT DEVELOPMENT OBJECTIVES A. PDO 16. The Project Development Objective (PDO) is to protect and rebuild livelihoods, human capital, particularly of children, and to re-launch the productivity of the agriculture sector. 17. In particular, the project aims at financing food expenditures and agricultural production assets. Food expenditures will be effectively targeted towards selected beneficiaries by setting a prioritization list within the contract with WFP for the use of WB funds (in descending order of priority) for (i) blanket supplementary feeding (BSF) for under-five child nutrition; (ii) targeted supplementary feeding (TSF) for pregnant and lactating women (PLW) and children aged 6-59 months in areas that suffer from moderate acute malnutrition; (iii) emergency school feeding (ESF); and (iv) general food distribution (GFD). In the contract with FAO, agricultural assets will cover subsidized seeds, equipment and training to seeds producers and women groups and to 4 the most affected households, subsidized seeds to NGOs participating in the Food Security Cluster (FSC), and training to field decentralized services of the Ministry of Rural Development. B. Project Beneficiaries and targeted areas of interventions 18. The proposed project will provide (i) appropriate food for the most food insecure and nutritionally vulnerable people including children in the first 1,000 days, schoolchildren, and pregnant and lactating women and (ii) inputs, agricultural equipment and post-harvest storage capacity for affected households. 19. The project main beneficiaries are the people most affected by and vulnerable to under- nutrition: (i) livelihood assistance to about 327,000 people through April, and rising to more than 1.1 million as the lean season begins in April/May 2014; human capital protection to about 220,000 young children (6-59 months old), 7,500 pregnant and lactating women, and 197,000 schoolchildren; and (ii) food production for about 143,200 people including: 1,150 young persons; 11,100 women head of households (55,000 people) members of 370 women seed producer groups; NGOs participating in FSC; and 50 field decentralized staff of the Ministry of Rural Development. Annex 2 provides more details on the target beneficiaries and areas. 20. Based on the latest Food Security Assessment, the identified priority prefectures are Bangui, Ouham, Ouham Pende, Lobaye, Nana-Mambéré, Ombella M’Poko, Basse Kotto, Mbomou, Nana-Gribizi and Ouaka. FAO activities will mainly target the prefectures of Ouham, Ouham Pende, Nana Gribizi, Lobaye, Ombella M’poko, Ouaka and Kemo. 21. To avoid exacerbating the tensions in the country by favoring one region/group/area over another, targeted beneficiaries have been identified with caution. Targeting of beneficiaries in need will be done at the community level and will be based on the communities’ socio-economic profile (with special consideration given to the proportion of female-headed households), coping strategies, food stock availability, food consumption patterns, and households hosting displaced persons. Regular consultations with affected population groups and a communications campaign with local religious leaders to inform their communities about distributions will be implemented. C. PDO Level Results Indicators 22. The PDO level results of the project will be measured using the following indicators: (i) Direct beneficiaries for livelihood assistance (number); (ii) Direct child beneficiaries for human capital protection (number); (iii) Direct beneficiaries for support in food crop production (number). III. PROJECT DESCRIPTION 23. The proposed operation will address two broad groups of concern in CAR: (i) increasing number of internally displaced people; and (ii) severely food insecure people who require food 5 and nutrition support in the immediate term, and moderately food insecure people at risk of falling into severe food insecurity as food stocks and purchasing power are further exhausted over the coming months. The proposed project aims at contributing to the efforts to (i) stabilize households’ livelihood and prevent further negative coping strategies by households as the lean season begins in March/April 2014; and (ii) revitalize the country’s agriculture sector before the next planting season in April 2014. A. Project Components 24. The project has two components: (i) Human Capital Protection and Livelihood Assistance; and (ii) Re-launch the productivity of the Agriculture Sector. 25. Component A: Human Capital Protection and Livelihood Assistance (US$12.0 million IDA). This component is designed to protect the human capital of children, including those in the first 1,000 days, and to prevent negative coping strategies by poor households - selling assets, incurring debt and sacrificing food consumption - which will compromise human capital and livelihood recovery in the longer run. Component A will support the procurement and distribution of specialized and staple foods, and supplemental feeding and school feeding programs in selected locations in the country. WFP will procure internationally specialized foods, (unavailable locally) to be used for blanket and targeted feeding of young children, 6-59 months, as well as pregnant and lactating women. It will also procure staple foods (grains, legumes, oils) where possible in neighboring countries through competitive procurement, and move them by land to CAR. These foods will then be distributed to food insecure households, in the affected prefectures at numerous distribution points, with coverage increasing over time as the lean season unfolds. The total human capital protection and livelihood assistance program implemented by WFP will reach more than 1.1 million people. The distribution of food will be particularly aimed at supporting those populations returning from safe-havens to areas of origin and their farmland to support the planting season (March-May). General food distribution to the remaining poor households will continue to be undertaken by WFP as part of its overall response program in CAR. The World Bank financing is relatively small compared to the whole WFP program, and it will be prioritized towards the protection of human capital, particularly children and pregnant and lactating women. 26. Component B: Re-launch the productivity of the Agriculture Sector (US$8.0 million IDA). This component will aim at restoring food production capacity for the most affected people in the food insecure areas. Despite the fact that the current situation calls for humanitarian aid, the proposed project will go beyond the essential agricultural input provision and support seeds suppliers and farming women groups in strengthening their capacity for resilience in a broader scope than just production. This component will finance purchase of groundnut, maize, rice and vegetable seeds (about 400 tons) for subsidized distribution to seeds producer groups (17,400 households), and 370 women groups (11,100 households) to restore domestic food production capacity. In addition, it will support procurement of about 55,000 pieces of farm equipment for subsidized distribution to the same beneficiaries, 740 processing units and rehabilitation and construction of 100 post-harvest and seed storage facilities at community and village level for women’ groups, and of the seed laboratory control for the Central African 6 Institute for Agricultural Research (ICRA). Component B will also provide training to the beneficiary farmers and to 50 field personnel of the Ministry of Rural Development, as well as 150 young graduates who will participate in the implementation of the project. B. Project Financing Lending Instrument 27. The lending instrument is an Investment Project Financing (IPF) to be provided on standard IDA credit terms in the amount of US$20.0 million equivalent, to be implemented over a two year period. Table 1: Project cost and financing Project cost Source of Financing Project components (US$ million) financing (percentage) 1. Component A Protection of livelihood 12 IDA 100% 2. Component B Re-launch the 8 IDA 100% productivity of the Agriculture Sector Total costs 20 IDA 100% Total financing required 20 IDA 100% C. Lessons Learned and Reflected in the Project Design 28. The experience and results gained from the Agriculture and Food security projects in CAR (namely the Implementation Completion Report of the preceding Food Crisis Response Project and the activities of the ongoing CAR Agro-pastoral Recovery project) has been considered in the design of this project. 29. Outsourcing implementation to non-governmental partners can be an effective strategy in fragile states. It ensures ownership on the part of the government while taking advantage of the implementation capacity of non-governmental partners that can be mobilized quickly. The major shortcoming can be the high overhead cost associated with engaging non-traditional partners. WFP and FAO have a longstanding relationship with NGOs and considerable experience in CAR with government and NGOs. NGOs will be involved in the implementation of the project. 30. For emergency operations, intense implementation support will often be needed immediately following effectiveness to rapidly close any “readiness gaps” and ensure successful outcomes. The flexibility allowed in preparing emergency operations facilitates rapid approval, effectiveness, and initial disbursement, but the quality of implementation and achievement of results may be seriously jeopardized if adequate resources are not provided during the start-up phase to close readiness gaps. Financial management and procurement procedures will be simplified to reflect the country context and the emergency nature of the operation. 7 31. Weak institutional capacity within key ministries hinders development impact from Bank investments, but cannot be adequately addressed through emergency operations. Institutional capacity in CAR remains extremely weak. As service providers to the Government of CAR, WFP and FAO will be responsible for the implementation of the project with the support of NGOs and decentralized field staff of the Ministry of Rural Development. 32. Non-traditional partners can introduce new and innovative ways of doing things. Under the previous Food Response Project (P113221), the Seed Fairs introduced by Catholic Relief Services (CRS) allowed rapid distribution of inputs and led to the creation of sustainable market linkages between producers and consumers. Distributions and implementation of the activities will be done with the help of NGOs selected on the basis of their past performance in implementing similar tasks. IV. IMPLEMENTATION A. Institutional and Implementation Arrangements 33. Given the strong complementarities between the UN and the WB based on their respective mandates, capacities, and comparative advantages, their close cooperation and partnership are essential especially in the CAR crisis. The Food and Agriculture Organization of the UN (FAO) and the World Food Program (WFP) agencies represent the only alternatives to support weak capacity in-country in managing the early phases of a recovery effort. Due to the limitation of viable means that would allow effective and immediate implementation of activities in-country and also due to absence of Government implementation capacity on the ground, the two project components will be implemented by FAO and WFP as service providers. WFP will provide services for activities related to the food crisis and reducing the impact of the food and nutrition insecurity (Component A), and FAO will focus on activities related to revitalization of the agriculture sector (Component B). 34. The United Nations Development Group-World Bank Post-Crisis Operational Annex and the Bank’s Procurement and Consultants Guidelines provide guiding principles and collaboration mechanisms when the UN is in the best position to provide critical services to the member country under projects supported by IDA. 35. Component A: Human Capital Protection and Livelihood assistance 36. WFP will ensure the coordination, programming, planning, monitoring, evaluation and supervision of all activities under component A. The component will be implemented in collaboration with the Ministries of Education, Health, Rural Development and Planning and their decentralized services, where this capacity exists and is functional, as well as with United Nations agencies and NGOs. The Ministry of Education will be particularly involved in the implementation of the emergency school feeding program. Nutrition interventions will be implemented jointly with the Ministry of Health, United Nations International Child and Enfant Fund (UNICEF) and NGOs, and coordinated with UNICEF through a joint nutrition strategy. The food security and nutrition clusters are active, and working to identify new sites and new 8 partners for the mobile distributions. Where partners do not exist, WFP will handle the distributions. 37. Component B: Re-launch the productivity of the Agriculture Sector 38. FAO will ensure the coordination, programming, planning, monitoring, evaluation and supervision of component B. FAO will provide administration for the financial management and technical staff for coordination and monitoring of the implementation of activities on the ground. To this end, FAO will recruit a Project Coordinator and three national experts and provide the necessary resources to the FAO country team in CAR for field operations, and to the team in the FAO headquarters for the technical supervision and the coordination of the activities. The composition of the FAO Coordination and Implementation Team (CIT) is presented in Annex 3. The project will finance the purchase and distribution of agricultural inputs, the cost of official and general operating expenses and direct trips. 39. In order to deliver in such a short period and assist affected farmers, national and international NGOs will be largely involved in the delivery of the assistance. FAO will identify partners and proceed with the establishment of memoranda of understanding with partners to implement activities. 40. The central and decentralized services of the Ministry of Rural Development will support producers and the implementation of activities on the ground. 41. NGOs and seeds producer groups network (REPROSEM) and proximity operators will: (i) facilitate the exchange of information on the targeting of population groups; (ii) provide logistical support to the implementation of the input distributions; and (iii) participate in the organization of training beneficiaries. B. Results Monitoring and Evaluation 42. The Monitoring and Evaluation (M&E) system for the project will be handled by FAO and WFP, in close collaboration with the Ministry of Rural Development. A study will be undertaken by WFP and FAO to evaluate the impact of the project’s interventions including whether the increased access to food, seed and equipment has had the intended impact on improving nutrition and production levels. 43. Monitoring tools and expanding the existing database for nutrition activities, school feeding, and food distribution interventions should be refined. WFP M&E focal points at country and sub-office level and FAO relevant staff will be trained. Partner NGOs, UN agencies, and Government technical ministries will be involved in the development of WFP M&E tools to ensure integration and coherence. WFP also plans to use NGOs for third-party monitoring in areas that remain inaccessible to staff. Food security, market and nutrition indicators will be monitored jointly with partner NGOs through an ACF (Action Against Hunger International) led multi-sectoral surveillance system and monthly surveillance bulletin. 9 C. Sustainability 44. Project sustainability relies on key considerations. First, the project will sustain human capital by limiting under-nutrition and improving health by enhancing food security and nutrition for the most affected and vulnerable groups including pregnant and lactating women, children aged 6-59 months, as well as schoolchildren, to ensure school attendance. Second, by financing basic needs for crop food production and storage facilities at village levels so as to limit post- harvest losses that are very high in CAR, and providing training to the beneficiary farmers, the project will (a) contribute to building their capacity, (b) revamp the seed system, (c) improve food security in the medium to longer-term and (d) sustain the agricultural production. Third, it will ultimately reinforce the resilience of the population affected by the conflict to better face food shocks and profit from local economic opportunities in the covered areas. 45. Although activities of the two components will be carried out under service agreements by WFP and FAO, the Ministry of Rural Development has defined the contractual arrangements with the two UN agencies and terms ensure ownership of project results by the Ministry’s services. To ensure the long-term sustainability of investments in productivity made under the proposed project, the project will also provide training to the beneficiary farmers and to 50 field personnel of the Ministry of Rural Development. 46. At the institutional level, the project will strengthen the capacity of AGETIP (Project implementing Entity) which will be in charge of ensuring FM and procurement reporting of project activities is undertaken as required. V. KEY RISKS AND MITIGATION MEASURES A. Risk Ratings Summary Table Risk Category Rating Stakeholder Risk High Implementing Agency Risk High - Capacity High - Governance High Project Risk Substantial - Design Substantial - Social and Environmental High - Program and Donor Low - Delivery Monitoring and Sustainability High - Other (climate change) Substantial - Other (market uncertainty) Substantial Overall Implementation Risk High 10 B. Overall Risk Rating Explanation 47. Risk during project preparation and implementation is assessed as High given the insecure and dynamic environment with limited capacity and infrastructure in CAR. 48. CAR has experienced sustained periods of political instability and internal conflict, resulting in weak governance and poor socio-economic outcomes. The government’s capacity at the central and decentralized levels to implement policies and donor programs has been severely affected. The risk inherent in these capacity constraints is inevitably high. To limit the impact of this risk on project implementation, the implementing agencies for the proposed project are FAO and WFP who have good track records and experience in managing Bank funds in CAR and globally. VI. APPRAISAL SUMMARY A. Economic and Financial Analysis 49. The project is expected to improve the economic conditions of people in the targeted areas and generate economic benefits. In addition, entering into service agreements with WFP and FAO for the implementation of activities of Component A and B respectively is the most cost effective way of delivering rapid impact within the emergency context. Each of the aforementioned organizations will be receiving seven percent of the respective contract value to cover administrative overhead charges which is deemed reasonable. 50. Project’s development impacts. Without support, the country may be spiraling into a deeper humanitarian and food insecurity crisis. The operation is expected to (i) improve the livelihoods of the people most affected by the crisis and protect those most vulnerable to under- nutrition; (ii) increase the agricultural production and food security for households; and (iii) reach indirect beneficiaries, especially those who will benefit from the agricultural production. The project would ultimately improve the economic conditions of people in the targeted areas of intervention and generate economic benefits. Component A will improve and safeguard the livelihoods of vulnerable populations and minimize impacts on nutrition, especially for children in the critical first 1,000 days while Component B will increase revenues for rural households by strengthening and protecting their agricultural production capacity. Project activities will likely yield other direct and indirect benefits in a short and long-term. 51. Rationale for the financing. Due to depressed economic activity, loss of administrative capacity and, declining social service provision in CAR, this emergency operation is an appropriate instrument to provide assistance to the most vulnerable and affected people. 52. Value added of Bank’s support. The nutritional, health, social and economic impact of the livelihood assistance should be very high since food security and nutrition have deteriorated dramatically. A Standardized Monitoring and Assessment of Relief and Transitions (SMART) nutrition survey is anticipated in early 2014, and there is great concern for the nutrition situation 11 of women and children given the crisis. The restoration of production capacity will contribute in limiting food insecurity and will have a positive impact on households’ economics in the covered areas. The project will also contribute to strengthening human capital by providing training to farmers groups (including women groups) and households as well as public servants in the Ministry of Rural Development. B. Technical 53. Agricultural inputs and equipment are critical for boosting food crop production in CAR. Without access to certified seed, fertilizers, equipment and other agricultural goods and services including technology, agriculture production remains essentially at subsistence level, with very low productivity and marketable surplus. The challenge is to first ensure the short-term distribution of these goods and services to generate a supply response. Then, security permitting, the project will support the setting up of the short term delivery of seeds and initiate the revamping of the seed system in CAR via the main actors such as ICRA, NGOs and REPROSEM. The project will also aim to address the issue of post-harvest losses (currently more than 40 percent of production) through the rehabilitation/construction of community storage facilities and training in proper storage techniques, again security permitting over the coming months. The project will also support specific training for the decentralized personnel of Ministry of Rural Development. 54. The project will concentrate the production of quality seeds around the urban poles and around major transportation axes in order to facilitate the transportation and dissemination thanks to the presence of commerce and aid organizations. 55. A critical assumption is that this operation will be able to restore the production capacity and improve food security of the beneficiary farmers, but also prevent malnutrition of vulnerable and most affected people, especially schoolchildren. In case of increase in instability and insecurity in the country, many of the project activities might not be sustained. C. Financial Management 56. A Subsidiary Agreement will be concluded between the government and AGETIP and will include aspects of project financial management. AGETIP is endowed with an adequate financial management system that meets the Bank FM requirements. Through supplies and technical assistance agreements, AGETIP will enter service agreements with WFP and FAO. As a result of the above arrangements the financial management residual risk rating of the project is deemed moderate. The supplies’ and technical agreements will provide detailed provisions on payments methods, reporting and transparency arrangements. 57. AGETIP will handle the project using its existing financial management platform and will be in charge of (i) preparing the project’s Interim Financial Reports (IFRs), (ii) submitting to the Bank applications for withdrawal of proceeds, and (iii) preparing annual financial statements. WFP and FAO will handle financial management aspects of each component under their 12 responsibility using their own procedures set out in their Financial Regulations and Rules. They will maintain separate ledger accounts for recording the transactions relating to the project in accordance with International Public Sector Accounting Standards, which are in use in both institutions. 58. Applications for withdrawal of proceeds will be prepared by AGETIP (Agency for Execution of Public Works) and submitted to IDA. Upon project effectiveness, funds withdrawn will be deposited into UN bank accounts (referred as UN Advance Account) in the name of WFP and FAO for their respective project components. These advances will be replenished periodically and by unaudited Interim Financial Reports prepared by AGETIP based on supporting documents and subject to Bank’s prior review. AGETIP’s external audit arrangement is adequate. However since 100 percent of the funds will be transferred to WFP and FAO using the UN Advance mechanism, reliance will be placed on WFP and FAO external audit arrangements. The Financial Management Operation Review Committee (FMORC) approved on February 6, 2014 the elimination of audit requirements for AGETIP as part of the project preparation. D. Procurement 59. Procurement risk rating is deemed moderate given the fact that the implementing entity, AGETIP, is a reputable entity, and the rules and the regulations of the two qualified UN agencies, FAO and WFP, which will manage activities of the two components, are acceptable to the Bank. 60. Procurement for the proposed project will be carried out in accordance with the World Bank “Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits & Grants by World Bank Borrowers” dated January, 2011; and “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credit & Grants by World Bank Borrowers”, dated January, 2011; and the provisions stipulated in the Legal Agreement. Contract awards will also be published in UNDB, in accordance with the Bank’s Procurement Guidelines (para. 2.60) and Consultants Guidelines (para. 2.31). Project activities will also be implemented following “Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”, dated October 15, 2006 and revised in January 2011. 61. Procurement Plan. A first draft Simplified Procurement Plan for project implementation, providing the basis for the procurement methods has been elaborated. This plan, covering the first 18 months of project implementation, was reviewed, discussed and agreed upon by the Borrower and the project team at negotiations. It will be available in the project’s database and a summary will be disclosed on the Bank’s external website once the project is approved by the Board. The Procurement Plan will be updated in agreement with the Project Team annually or as required to reflect the actual project implementation needs and improvement in institutional capacity. 13 E. Safeguards 62. From environmental and social aspects, the project is a Category B- partial assessment. The environmental and social impacts will be local and limited, and specific mitigation measures will be designed. The proposed intervention will include (i) supply of food; (ii) supply of seed and equipment; and (iii) rehabilitation of storages facilities. An Environmental and Social Screening and Assessment Framework (ESSAF) has been prepared, and appropriate elements will be incorporated into the project implementation manual. The potential negative impacts of the project broadly focus on the following: (i) deterioration of soil; (ii) surface water and groundwater pollution risks due to the increased use of pesticides; loss of vegetation following the installation of storage facilities. The emphasis in the ESSAF is on developing simple guidelines for activities by (i) identifying environmental and social risks; and (ii) providing relevant mitigation measures. Specifically, all expected activities will have environmental and social implications. For that, the project triggered (i) OP/BP 4.01; (ii) OP/BP 4.09; (iii) OP/BP 4.10 and (iv) OP/BP 4.11. An Environmental and Social Mitigation Assessment (ESMA) and measures (ESMP) will be developed in project areas and integrated within subprojects cycle. The existing Environmental and Social Management Framework (ESMF), Pest and Pesticide Management Plan (PMP) and Indigenous Peoples Plan (IPP) for the past Agro-Pastoral Recovery Project P124278 prepared in 2012 will be updated before the implementation of activities on the ground. The project will exclude all activities requiring resettlement. The overall responsibility for ensuring project activities and compliance with safeguards requirements lies with CAR government through the MDR. 63. Table: Safeguard Policies Triggered by the Proposed Project: Safeguard policies triggered: Environmental Assessment (OP/BP 4.01) [x]Yes [ ] No Natural Habitats (OP/BP 4.04) [ ]Yes [x] No Forests (OP/BP 4.36) [ ]Yes [x] No Pest Management (OP 4.09) [x]Yes [ ] No Physical Cultural Resources (OP/BP 4.11) [x]Yes [ ] No Indigenous Peoples (OP/BP 4.10) [x]Yes [x] No Involuntary Resettlement (OP/BP 4.12) [ ]Yes [x] No Safety of Dams (OP/BP 4.37) [ ]Yes [x] No Projects on International Waterways (OP/BP 7.50) [ ]Yes [x] No Projects in Disputed Areas (OP/BP 7.60) [ ]Yes [x] No 64. As this operation is subject to OP/BP 10.00, paragraph 11 related to Projects in Situations of Urgent Need of Assistance or Capacity constraints, an Environmental and Social Screening and Assessment Framework (ESSAF) has been prepared (Annex 6). The ESSAF is consistent with Bank operational policies and procedures for investment operations subject to OP/BP 10.00, paragraph 11, and the guidance note for Projects in Situations of Urgent Need of Assistance or Capacity constraints and application of Bank safeguard and disclosure policies. This ESSAF provides general policies, guidelines, codes of practice and procedures to be integrated into the implementation of the Emergency Food Crisis Response and Agriculture Re-Launch Project. The ESSAF describes the approach and principles to be followed to ensure due diligence in managing the potential adverse environmental and social impacts and risks associated with the project. 14 65. The ESSAF is developed specifically for this proposed project, to ensure due diligence to avoid causing harm or exacerbating social tension and to ensure consistent treatment of social and environmental issues by the Government of CAR and service providers. The purpose of the ESSAF is also to assist the WFP, FAO and all concerned public agencies in screening project- supported activities for their likely social and environmental impacts, identifying documentation and preparation requirements and piloting the investments. The detailed descriptions of project- supported activities and their exact locations will be made available to facilitate the monitoring and evaluation of project implementation. In addition, the ESSAF is providing a framework for the establishment of guidelines and codes of practice for the prevention and mitigation of potential environmental and social impacts, and safeguards procedures. The relevant safeguards instruments (ESMF, ESMA, ESMP, PMP and IPP) will be updated and disclosed within 120 days after the project effectiveness. 66. The proposed project does not require any exceptions to Bank environmental and social safeguards policies. 15 ANNEX 1: RESULTS FRAMEWORK AND MONITORING Country: Central African Republic Project Name: CAR Emergency Food Crisis Response and Agriculture Re-launch Project . . Project Development Objectives PDO Statement The Project Development Objective (PDO) is to protect and rebuild livelihoods, human capital, particularly of children, and to re-launch the productivity of the agriculture sector. These results are at Project Level Project Development Objective Indicators Cumulative Target Values Data Source/ Responsibility for Unit of Methodology Data Collection Indicator Name Core Baseline YR1 YR2 YR3 YR4 End Target Frequency Measure Direct beneficiaries M&E and WFP, NGOs, for support in food Number 0.00 143200 Quarterly surveys MRD, AGETIP crop production Direct beneficiaries M&E and WFP, NGOs, for livelihood Number 0.00 1100000 Quarterly surveys MRD, AGETIP assistance Direct child beneficiaries for M&E and WFP, NGOs, Number 0.00 424500 Quarterly human capital surveys MRD, AGETIP protection . Intermediate Results Indicators Cumulative Target Values Data Source/ Responsibility for Unit of Methodology Data Collection Indicator Name Core Baseline YR1 YR2 YR3 YR4 End Target Frequency Measure General food Metric ton 0.00 1,400 Quarterly M&E system WFP, NGOs, 16 distribution MRD, AGETIP Blanket WFP, NGOS, supplementary Metric ton 0.00 2,500 Quarterly M&E system MRD, AGETIP feeding Targeted WFP, NGOS, supplementary Metric ton 0.00 2,000 Quarterly M&E system MRD, AGETIP feeding Increase in seed M&E system, FAO, NGOs, Metric ton 0.00 350 Yearly production capacity surveys MRD, AGETIP Increase in grain M&E system, FAO, NGOs, and seed storage Metric ton 0.00 150 Yearly Surveys MRD, AGETIP capacity Emergency school WFP, NGOS, Metric ton 0.00 1,470 Quarterly M&E system feeding MRD, AGETIP FAO, NGOs, People trained Number 0.00 200 Quarterly M&E system MRD, AGETIP Number FAO, NGOs, Of which youth Sub-Type 0.00 150 Quarterly M&E system MRD, AGETIP Breakdown Number Of which FAO, NGOs, Sub-Type 0.00 50 Quarterly M&E system decentralized staff MRD, AGETIP Breakdown WFP, FAO, Direct project M&E system, Number 0.00 1667700 Yearly MRD, NGOs, beneficiaries surveys AGETIP Percentage FAO, WFP, Female M&E system, Sub-Type 0.00 30 Yearly NGOs, MRD, beneficiaries surveys Supplemental AGETIP 17 ANNEX 2: DETAILED PROJECT DESCRIPTION Central African Republic: Emergency Food Crisis Response and Agriculture Re-launch Project Targeting 1. The full1 target population for Human Capital Protection and Livelihood Assistance under a fully funded operation by WFP is presented below: Beneficiaries by activities¹ Total Category of Phase 1 Phase 2 Activity (accounting for beneficiaries January- April May– August duplication) Severely food-insecure 135,000 135,000 135,000 ( includes IDPs) Vulnerable IDPs 180,000 180,000 180,000² requiring assistance GFD Moderately food- insecure (returnees, 0 785,000 785,000 static) Sub-total 315,000 1,100,000 1,100,000 Refugees 12,000 12,000 12,000 Children aged 6–59 BSF 63,000 157,000 157,000 months Children aged 6–59 11,000 11,000 33,500 months TSF PLW 7,500 7,500 10,000 Caregivers’ ration 2,500 2,500 5,000 ART clients 2,500 10,000 10,000 FbP Family rations 0 5,500 5,500 ESF Schoolchildren 108,500 197,000 197,000 Total (accounting for duplication) ³ 397,000 1,239,000 1,250,000 ¹Figures rounded to the nearest 500. ²This reflects the monthly planning figure. 2. Under the project, special attention will be given to the selection of beneficiaries within the communities to ensure the support of the people actually affected by the crisis without distinction of creed or class. WFP has already enlisted the support from its Rome based team of conflict prevention and mitigation advisers in CAR to ensure neutrality in its targeting and distribution criteria. An expert will be mobilized to ensure the project to define the criteria and methodology 1 These figures reflect a fully funded (US$107 million) operation by WFP. World Bank funding will cover a smaller number of beneficiaries focused on children, pregnant and lactating women, and school children recognizing that the situation on the ground is fluid 18 for the selection and formation of groups to ensure fairness, impartiality. So it will be only the criteria of vulnerability and capacity to benefit from the assistance that will be used. The agricultural kits to be provided will not include any tools that can be used as weapons. Finally, particular attention will be given to ensure and promote intergroup dialogue, in particular the formation of groups of agricultural producers and multipliers. In all activities including those for youth and women attention will be given to secure a mix of groups. The project will also be coordinated with specific reconciliation initiatives envisaged by UNHCR. 3. Beneficiary rural households are made up of individual smallholders practicing agriculture on areas of about 0.35 ha per household for staple food and 0.1 ha for vegetables. Beneficiary households must meet the following selection criteria : Vulnerable Households affected by acute food insecurity especially women, girls and families affected by HIV / AIDS, with no other source of income than agriculture, characterized by a depletion of food stocks and seeds, very low purchasing power, coupled with the implementation of unusual coping mechanisms. A joint targeting working with the WFP will be done to coordinate the response. 4. The agricultural support will benefit the following categories: (i) seeds producers Groups (GAM) and women groups members of the seeds producer groups network; (ii) Field personnel of the Decentralized Services of the Ministry of Rural Development in the covered areas; (iii) Households that have been most affected by the armed conflict (IDPs, returning, hosting families); (iv) Humanitarian actors, in particular NGOs that participate to the Food Security Cluster, such as VITALITES PLUS, CARITAS, CADAPI, PREMIERE URGENCE,CRS, SOLIDARITE, ACTION CONTRE LA FAIN, ACTED. 5. The project will be implemented in 7 «préfectures» of the country which are most food insecure according to the IPC (Food Security Integrated Phase Classification) analysis and to the EFSA (Emergency Food Security Assessment). The project will concentrate the production of quality seeds around the urban poles and around major transportation axes in order to facilitate transportation and dissemination thanks to the presence of commerce and aid organizations. The targeted «préfectures»include Ouham, Ouham Pende, Nana Gribizi, Lobaye, Ombella M’poko, Ouaka and Kemo. Description 6. Component A: Human Capital Protection and Livelihood Assistance (US$12.0 million IDA). The objective is to improve access to food for the targeted people. This component will have a particular focus on children, including those in the critical 1,000 day window, which addressed using specialized foods provided through blanket supplementary feeding (BSF) to about 220,000 young children (6-59 months old) to prevent a spike in malnutrition, targeted supplementary feeding (TSF) to 7,500 pregnant and lactating women (PLW) and 33,500 children aged 6-59 months that suffer from moderate to acute malnutrition. Emergency school feeding (ESF) to 197,000 schoolchildren in the re-opened schools will attract children back to school and foster their educational development. As far as possible World Bank financing will be concentrated on these activities. However, where necessary to support the nutrition interventions, prevent livelihood erosion, and prevent and mitigate conflict, WFP will also undertake the provision of specialized and staple food to up to 1.1 million beneficiaries. This food will be 19 procured in neighboring countries, where possible without causing price spikes, and transported overland to CAR. 7. Specialized highly nutritious foods, including corn soy blends and plumpy sup, will be procured internationally, as they cannot be sourced in the region, and shipped to Cameroon before land transport to CAR. They will be used for nutritionally vulnerable groups including children and pregnant and lactating women. Blanket supplemental feeding (BSF) of the nutritionally vulnerable will be used in the most severely affected prefectures, identified by an earlier WFP emergency food security assessment. BSF for young children will increase as the lean season deepens to up to 220,000 children to prevent a spike in malnutrition. The ration is designed to fully meet nutritional needs. 8. Nutritional screening, in conjunction with health centers, will be used in other prefectures that are less severely affected by food insecurity to implement targeted supplemental feeding of the nutritionally vulnerable. The anticipated caseload is 22,000 young children, and 10,000 pregnant and lactating women. 9. In the current circumstances given market disruption and insecurity, food transfers are the most appropriate transfer. However, should the situation stabilize and markets return to normal WFP will consider switching to vouchers or cash transfers, to complement specialized nutritional products. These would replace staple food transfers such as rice, legumes and oils, which would then be available in the marketplace. 10. Given the current insecurity special attention will be given to the safety of beneficiaries at collection points for livelihood assistance. In the event that theft and violence are experienced by beneficiaries, especially women, normally the target group for food transfers, then WFP will consider introducing on site feeding. 11. School feeding will be implemented in conjunction with the Ministry of Education and UNICEF, who are gradually re-opening schools. It will be targeted based on schools in areas with high levels of out of school children in September 2013, where net enrollment rates are below the 67 percent national average and where school feeding has been identified as an efficient way to attract children to school. 12. Component B: Re-launch the productivity of the Agriculture Sector (US$8.0 million IDA): will aim at restoring food production capacity for the most affected people in the food insecure areas. Despite the fact that the current situation calls for humanitarian aid, the proposed project will go beyond the essential agricultural input provision and support seeds suppliers and farming women groups in strengthening their capacity for resilience in a broader scope than just production. To achieve this result, the component will support key agricultural activities including: (i) rapid assessment/diagnosis of the seed sector in CAR; (ii) support to the creation of seed producer groups; (iii) seed multiplication, processing and distribution; and (iv) capacity building and training. 13. To this end, component B will finance purchase of groundnut, maize, rice and vegetable seeds (about 400 tons) for subsidized distribution to seeds producer’ groups (17,400 households), and 370 women’ groups (11,100 households) to restore domestic food production capacity. In 20 addition it will support procurement of about 55,000 pieces of farm equipment for subsidized distribution to the same beneficiaries, 740 processing units and rehabilitation/construction of 100 post-harvest/seed storage facilities at community/village level for women’ groups, and of the seed laboratory control for ICRA. Component B will also provide training to 150 young graduates and 50 field personnel of the Ministry of Rural Development who will participate in the implementation of the project. 21 ANNEX 3: IMPLEMENTATION ARRANGEMENTS Central African Republic: Emergency Food Crisis Response and Agriculture Re-launch Project Project Institutional and Implementation Arrangements 1. To efficiently and successfully implement the proposed emergency project, the implementation of project activities will be done by two specialized UN agencies, the WFP and the FAO as service providers. FAO would implement activities related to revitalization of the Agriculture sector, and WFP would focus on activities related to food crisis and reducing the impact of the food insecurity. The Government of Central African Republic will enter into contractual agreements with the two specialized agencies. Both agencies are already on the ground, and have an extensive network of contact with NGOs and local government services that will allow speedy delivery of services. 2. The respective contracts to be signed between CAR and the agencies will include inter alia details of activities to be provided, technical and financial reporting requirements, reporting frequency, safeguards issues, monitoring and evaluation during and at the end of project implementation. There will not be a project implementation unit. Oversight of activities will therefore be done within the existing ministry structure. 3. To ensure good management and execution of component B, FAO will create a management team that will include: (i) a Project Coordinator in Bangui office; (ii) a Financial Management (FM) Officer; (iii) a FM Assistant; (iv) a Program Officer; (v) a Procurement and Transaction Officer; (vi) two regional coordinators in Bossangoa and Bambari. Project administration mechanisms Financial Management, Disbursements 4. A financial management assessment of the project implementing entity (AGETIP2, Agence Générale d’Execution des Travaux d’Intérêt Publics, part of the Ministry in charge of infrastructure) for the Food Crisis Response and Agriculture Re-launch Project was conducted by the Bank’s financial management team on January 2014 in accordance with the procedures described in para 11 of the OP 10.003 on Investment Project Financing. Since the PIU will contract with WFP and FAO as suppliers to execute the project, a customized review of the financial arrangements of these suppliers was performed in conjunction with Bank’s guidance regarding FM arrangements in UN organizations. Overview of Program and Implementation Arrangements 5. The project development objective is to protect and re-build human capital, particularly of children and livelihoods, and re-launch the agriculture sector in CAR. The project has two components: (i) component A: Human Capital Protection and Livelihood Assistance (US$12 2 In charge of the implementation of the Emergency Urban Infrastructure Rehabilitation & Maintenance (P104595) 3 Projects in situation of urgent need of assistance or capacity constraint. 22 million IDA); (ii) and component B: Re-launch of the Agriculture Sector (US$8 million IDA). The project will be coordinated by an existing PIU namely AGETIP which will contract two suppliers for each component. WFP will focus on activities related to food crisis and reducing the impact of the food insecurity (component A) and FAO will oversee activities related to revitalization of the Agriculture sector (component B). 6. A Project Implementation Manual providing details of arrangements and procedures for the implementation of the Project, including: (i) procurement, financial management and disbursement arrangements; (ii) institutional administration, coordination and day-to-day execution of Project activities; (iii) monitoring and evaluation, reporting, information, training and communication arrangements of Project activities; (iv) an administrative, accounting, and financial manual; (v) main contents of the service agreements between WFP, FAO and the Government of CAR; and (vi) other technical and organizational arrangements and procedures as required; is in preparation and will be finalized and discussed with IDA before the project becomes effective. Summary of the assessments 7. AGETIP is endowed with an adequate financial management system that meets the Bank FM requirements. Through supplies and technical assistance agreements, AGETIP will contract with WFP and FAO. As a result of the above arrangements the financial management residual risk rating of the project is deemed moderate. The supplies and technical agreements will provide detailed provisions on payments methods, reporting and transparency arrangements. 8. AGETIP will handle the project using its financial management platform and will be in charge of (i) preparing the project’s Interim Financial Reports (IFRs), (ii) submitting to the Bank applications for withdrawal of proceeds, and (iii) preparing annual financial statements. WFP and FAO will handle financial management aspects of each component under their responsibility using their own procedures set out in their Financial Regulations and Rules. They will maintain a separate ledger accounts for recording the transactions relating to the project in accordance with International Public Sector Accounting Standards, which are in use in both institutions. 9. Applications for withdrawal of proceeds will be prepared by AGETIP and submitted to IDA. Upon project effectiveness, funds withdrawn will be deposited into UN bank accounts (referred as UN Advance Account) in the name of WFP and FAO for their respective project components. These advances will be replenished quarterly and unaudited Interim Financial Reports prepared by AGETIP based on supporting documents and subject to Bank’s prior review. 10. AGETIP’s external audit arrangements are adequate. However since 100 percent of the funds will be transferred to WFP and FAO using the UN Advance mechanism, reliance will be placed on WFP and FAO external audit arrangements. The Financial Management Operation Review Committee (FMORC) approved on February 6, 2014 the elimination of audit requirements for AGETIP as part of the project preparation. 11. The signing of the supplies and technical assistance agreements between the Government of CAR, WFP and FAO will be done not later than the effectiveness date. 23 Country and sector PFM Issues 12. The country fiduciary risk was substantial before the crisis and has been impacted by the delay in the implementation of critical PFM reforms agreed to with donors in 2012. The recent crisis increased the frequent recourse to extra budgetary procedures while affecting the collection of domestic revenues. The single treasury account arrangement has been weakened and the country’s cash flow situation is deteriorating. The crisis has also impacted the computerized financial management system (IFMIS) deployed by the Directorate of Public Treasury (which is no longer integrated into the module set up at the Directorate of Budget). State accounting books are maintained in Excel. As a result of the above deterioration of the PFM situation, the country fiduciary risk is now high. 13. The above mentioned situation forms the basis for contracting with suppliers such as United Nations agencies (experienced and endowed with appropriate fiduciary and governance framework) for the implementation of the project components. Risk Assessment and Mitigation Risk Risk Risk Mitigating Measures Residual risk Remarks rating Incorporated into Project Design INHERENT RISK M M Country level H Contract with WFP and FAO S Not later than Weak fiduciary capacity affected as suppliers for the project’s effectiveness by the crisis. implementation Entity level S Rely on AGETIP as M Implementation Absence of national entity in the coordinated entity of the Agriculture ministry capable to suppliers (WFP and FAO) implement the project as a result of the country situation. Project level S M See ORAF See ORAF CONTROL RISK Budgeting L L Over AGETIP will rely on WFP and implementation FAO budgeting arrangements Accounting L L AGETIP will rely on WFP and FAO accounting arrangement. Internal Controls and Internal Audit AGETIP’s internal control environment is adequate for the L L tasks to be performed. Funds Flow M M Include in the ToR of the Over project Risk of delay in timely Finance officer the submission implementation submitting by AGETIP the direct by 5 working days to the Bank 24 payments to the Bank. the direct payments of the suppliers. Agree the supporting documents to include in the direct payment requests. Financial Reporting M M Agree on the format of the IFR Done Difficulty to consolidate WFP to be submitted by suppliers and FAO quarterly financial and consolidated/centralized report and annual financial by AGETIP. This will include statements. the reporting format for cooperating partners involved in the logistics chain by the suppliers. Auditing L L AGETIP will not manage any Request audit elimination and funds. rely on WFP and FAO audit arrangements4. Social Accountability S S Over Weak oversight capacity that may Implement a social implementation trigger elite capture and resource accountability mechanism that misappropriation, misallocation, encompasses beneficiary and embezzlement. involvement and extensive independent evaluation committee. Overall FM risk M M 14. The overall risk rating for AGETIP is assessed as moderate. Since part of the execution of the project lies with WFP and FAO, the below brief assessment focusing on selected areas of these institutions is presented. Risk Risk Risk Mitigating Residual Remarks rating Measures Incorporated risk into Project Design CONTROL RISK Budgeting M M Promptly prepare budget Over i. WPF 2012 external audit report did not point out implementation revision and obtain prior material budget issues. approval before ii. FAO 2011 external audit report pointed out committing expenditures delays in the preparation of budget revision and that will exceed the latest 4 WFP is audited by [the Comptroller and auditor general of India] and FAO by the [Philippines Auditor General]. These Institutions meet International Standards on Supreme Audit Institutions and are very experienced in the audit of international organizations 25 budget overruns for a number of [emergency approved budget. response] projects managed in field offices. Accounting L L Both institutions have decided to transition to IPSAS accrual standards and use state of the art ERPs. WFP is already implementing IPSAS, whereas at FAO full implementation has been postponed to 2014. No material issue identified. Both institutions have adequate finance team in the field and at HQ to oversee the activities. Internal Controls and Internal Audit Strengthen controls over S Over i. WPF 2012 external audit report pointed out the foods distribution implementation internal control issues in relation to delayed S reporting and accounting reporting and inaccurate accounting of process. undistributed food held in stock by cooperating partners. Reconcile on a monthly Over ii. FAO: See internal control issues related to basis the stock of implementation financial reporting undistributed foods and include the reconciliation in the interim financial report. Financial Reporting M M Agree on the format of At negotiations FAO 2011 audit report identified internal control the IFR to be submitted issues on timeliness of report issuance for by suppliers and emergency & rehabilitation operations. consolidated by AGETIP. This will include the reporting format for cooperating partners (ONGs…) involved in the logistics chain by the suppliers. Over implementation Require submission of reports within the project time frames despite identified constraints. Agree upfront on escalation procedures in case of delays. Overall FM risk M M Strengths and Weaknesses 15. AGETIP is endowed with an adequate (i) FM staff (one Finance Officer, two accountants, and one internal auditor) well conversant with Bank procedures and (ii) fiduciary platform (manual of procedures, reporting arrangements…). Financial Regulations, systems and processes of AGETIP’s suppliers (WFP and FAO) are also deemed appropriate 26 Staffing 16. AGETIP’s FM team is adequate and well qualified to oversee the project. The team will be in charge of (i) preparing the IFRs, (ii) submitting the direct payments and (iii) preparing the consolidated financial statements. As described in the suppliers’ agreement it is expected that FAO will appoint a team comprising one senior financial officer (in HQ), 1 finance officer and one accountant will handle the financial management activities. Budgeting 17. AGETIP’s budgeting arrangements are deemed adequate. Daily management of the detailed activities will rely on WFP and FAO budgeting arrangements which are appropriate. Accounting 18. AGETIP will consolidate accounting information submitting by WFP and FAO. Each supplier will maintain in a separate account (IPSAS accrual basis) in its records a complete, true and faithful record of all the advances from proceeds of the financing and of all the expenditures paid from such advances. WFP complies with FAO’s IPSAS and FAO full IPSAS implementation is planned for 2014. Internal Control / Internal Audit 19. The project internal control and internal audit arrangements will rely on AGETIP’s existing arrangements complemented by WFP and FAO related procedures for the day to day transactions. WFP internal control procedures will be strengthened with a view to mitigate the shortcoming identified in the second risk table (internal control/internal audit - undistributed foods held in stock). Reporting and Monitoring 20. AGETIP will prepare a consolidated report based on IFR submitted by WFP and FAO using theirs current reporting format. It will include statement of accounts showing the cash received, costs incurred broken down per main items, cash balance and explanatory notes. Intra year reporting will be submitted not later than 45 days after the end of the semester. As for WFP, it will include the reconciliation of the undistributed food in stock as well as simplified report from the cooperating partners involved in the operations. External Audit 21. AGETIP’s external audit arrangements are adequate. However since no fund will be managed by AGETIP, but 100 percent transferred to WFP and FAO through direct payments, reliance will be placed on WFP and FAO external audit arrangements. Waiver for audit elimination has been granted as part of the project preparation. Funds flow Disbursement Methods 27 22. Upon project effectiveness, applications for withdrawal of proceeds will be prepared by AGETIP and submitted to IDA. Funds withdrawn from the IDA credit account will be deposited directly into the UN bank accounts (using the UN Advance with commitment mechanism) in the name of WFP and FAO for their respective project components. These advances, which can be up to 100 percent of the contract amount, will be documented semi-annually through the semi- annual unaudited Interim Financial Reports prepared by AGETIP based on supporting documents provided by the WFP and FAO. Retroactive financing 23. The Bank may, under certain conditions, finance payments made by a borrower out of its own resources before the date of the financing agreement. For the purpose of this project, the payments of such financing will not exceed 40 percent of the total loan amount (no more than SDR 5,240,000). Disbursement by Category 24. The table below sets out the expenditure categories and percentages to be financed out of the credit proceeds. Percentage of Amount of the Amount of the Expenditures to Credit Credit Category be Financed (expressed in (expressed in (inclusive of USD) SDR) Taxes) (1) Goods, works, non-consulting services, and consultants’ services 12,000,000 7,900,000 100 percent for Part 1 of the Project (2) Goods, works, non-consulting services, and consultants’ for Part 8,000,000 5,200,000 100 percent 2 of the Project. TOTAL AMOUNT 20,000,000 13,100,000 Action Plan to address weaknesses 25. No major weakness identified. Conditionalities 26. Signing of the supplies’ and technical agreements that will include appropriate mitigation measures, not later than the effectiveness date. Financial covenants 27. N/A 28 Implementing support plan 28. FM implementation support plan will be consistent with the emergency aspect of the operations, and will involve a collaborative approach with the entire Task Team (including procurement) and WFP and FAO fiduciary team. The first FM review will be carried out as soon as the security situation permits. Otherwise, it may entail increased communications with the affected UN agencies and government to obtain project status updates. It is expected that in remote areas where physical security is an issue, AGETIP will provide increased support coverage and probably explore the possibility of alternatively bringing the records to a safer central location. This will be further supplemented where deemed necessary to conduct joint implementation support activities with other donors to agree on common resolutions to issues including capacity-strengthening actions. The review of the direct payments will be part of the supervision arrangement. Thereafter, the on-site supervision intensity will be based on risk, initially on the appraisal document risk rating and subsequently on the updated financial management risk rating during implementation. Conclusions of the FM Assessments 29. Following the financial management assessment of the entities involved in the project, inherent and control risks were identified and related mitigation measures were developed. The residual control risk is moderate. In summary, the conclusion of the assessment is that the proposed FM arrangements for the Project as described meet the Bank’s minimum requirements for FM under OP/BP 10.00. Banking arrangements and funds flow 30. Fund flows are presented in the appendix below. 29 Appendix: Fund flow IDA WA prepared by AGETIP WFP FAO Cooperating partners (international NGOs…) Local services providers Legend: Transfers of funds Flow of documents Payment to suppliers Procurement Guidelines 31. Procurement for the proposed project will be carried out in accordance with the World Bank “Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits & Grants by World Bank Borrowers” dated January, 2011; and “Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credit & Grants by World Bank Borrowers”, dated January, 2011, and the provisions stipulated in the Legal Agreement. Procurement (goods and non-consulting services) or Consultant Selection methods, prequalification, estimated costs, prior review requirements, and time-frame will be agreed in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation. As an emergency operation, this project is entitled to the specificity and the flexibility described in paragraph 11 of the OP 10.005 on Investment Project Financing. 5 Projects in Situations of Urgent Need of Assistance or Capacity Constraints. 30 32. Advertising. A comprehensive General Procurement Notice (GPN) will be prepared by the Borrower and published in the United Nations Development Business online (UNDB online) prior to Board Approval, to announce major consulting assignments and any international competitive bidding (ICB). The GPN shall include all ICB for Goods and non-consulting services contracts and all large consulting contracts (i.e., those estimated to cost US$300,000 or more). In addition, a specific procurement notice is required for all works and goods to be procured under ICB in UNDB online. Requests for Expressions of Interest (EOI) for consulting services expected to cost more than US$300,000 shall be advertised in UNDB online. An EOI is required in the national gazette, a national newspaper, or an electronic portal of free access for all consulting firm services regardless of the contract amount. In the case of National Competitive Bidding (NCB), a specific procurement notice will be published in the national gazette, a national newspaper, or an electronic portal of free access. Contract awards will also be published in UNDB, in accordance with the Bank’s Procurement Guidelines (para. 2.60) and Consultants Guidelines (para. 2.31). 33. Requirements for National Competitive Bidding. Although available, these requirements are not applicable as NCB is not foreseen under this operation. 34. Procurement Environment. No special exceptions, permits or licenses need to be specified in the Credit Agreement since the procurement Law dated June 8, 2008 allows World Bank procedures to take precedence over any contrary provisions in local regulations. - Procurement of Goods and Non Consulting Services. Procurement of Goods and Non Consulting Services under this project consists mainly on suppliers for food security, such as feeding, seeds foods production, and their related services. Given the circumstances and the emergency of this operation, these supplies are expected to be procured through contracts signed with UN Agencies by the borrower. These supplies will be procured, shipped, delivered, and related services provided in accordance with the terms of Agreements with UN Agencies and their respective regulations, rules, procedures, and administrative instructions for procurement and finance. There are no ICB and NCB under World Bank procurement guidelines on this operation. The following procurement methods will be used: shopping, Direct Contracting, Procurement from United Nations Agencies. Procurement of goods and non-consulting services, including those of readily available off-the-shelf maintenance of the office electronic equipment and other services such as printing, and editing, which cannot be grouped into bid packages of US$100,000 or more, may be procured through prudent shopping in conformity with Clause 3.5 of the procurement guidelines. - Based on country-specific needs and circumstances, shopping thresholds for the purchase of vehicles and fuel may be increased up to US$500,000, considering the major cars dealers and oil providers are consulted. - Direct Contracting shall also be used in accordance with the provisions of paragraphs 3.7 of the Procurement Guidelines, with World Bank’s prior agreement. 35. Selection of Consultants. Consulting services will be used mainly for technical assistance for food security activities, including training. The consulting services will be procured with the most appropriate method among the following which are allowed by Bank guidelines and 31 included in the approved procurement plan: Quality-and Cost-Based Selection (QCBS), Quality- Based Selection (QBS), Selection under a Fixed Budget (SFB), Least-Cost Selection (LCS), Selection based on Consultants’ Qualifications (CQS), Selection of UN Agencies, Selection of Individual Consultants and Single Source Selection for Firms and Individual Consultants: - Selection based on Consultants’ Qualifications (CQS) will be used for assignments that shall not exceed US$300,000. Single Source selection shall also be used in accordance with the provisions of paragraphs 3.9 to 3.13 of the Consultant Guidelines, with World Bank’s prior agreement. All terms of reference will be subject to World Bank Prior Review. - Assignments of Engineering Designs and Contract Supervision in Excess of US$200,000, and all other technical Assistance assignments above US$100,000, must be procured on the basis of international short-lists and in accordance with the provisions of the paragraph 2.6 of the consultants’ guidelines. - Consultants for services meeting the requirements of Section V of the consultant guidelines will be selected under the provisions for the Selection of Individual Consultants, through comparison of qualifications among candidates expressing interest in the assignment or approached directly. Institutional arrangements for procurement and capacity assessment including risk mitigation measures 36. The implementation of the project will be done by the coordinating entity (AGETIP). AGETIP will manage technical assistances and suppliers contracts signed with two UN Agencies, namely WFP and FAO. 37. Risks identified and proposed mitigation measures. Procurement risk rating is deemed moderate giving the fact that AGETIP is a reputable entity, and the rules and the regulations of the two qualified UN agencies, FAO and WFP, which will manage activities of the two components, are acceptable to the Bank. 38. Procurement Plan. A first draft Simplified Procurement Plan for project implementation, providing the basis for the procurement methods, has been elaborated. This plan, covering the first 18 months of project implementation, was reviewed, discussed and agreed upon by the Borrower and the project team at negotiations. It will be available in the project’s database and a summary will be disclosed on the Bank’s external website once the project is approved by the Board. The Procurement Plan will be updated in agreement with the Project Team annually or as required to reflect the actual project implementation needs and improvement in institutional capacity. 39. Publication of Results and Debriefing. Publication of results of the bidding process is required for all ICBs, Limited International Biddings (LIBs), and Direct Contracting. Publication should take place as soon as the no-objection is received, except for Direct Contracting which may be done on quarterly basis and in a simplified format. Publication of results for NCB and Shopping should follow the requirements of the procurement code of Central African Republic. The disclosure of results is also required for selection of consultants. All consultants competing for the assignment should be informed of the result of the technical evaluation (number of points 32 that each firm received) before the opening of the financial proposals, and at the end of the selection process the results should be published. The publication of results in selection of consultants applies to all methods. For CQS and SSS, however, the publication may be done quarterly and in a simplified format. The publication of results may be done through Client Connection. Losing bidders/consultants shall be debriefed on the reasons why they were not awarded the contract if they request explanation. 40. Fraud and Corruption. The procuring entities as well as Bidders /Suppliers/Contractors /Services Providers shall observe the highest standard of ethics during the procurement and execution of contracts financed under the program in accordance with paragraphs 1.14 and 1.15 of the Procurement Guidelines and paragraphs 1.22 and 1.23 of the Consultants Guidelines. The Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”, dated October 15, 2006, and revised in January, 2011, will apply to this project. 41. The capacity assessment has recommended supervision missions to visit the field at least two times a year. If need be, a post review of procurement actions will be conducted on an annual basis. Summarized Procurement Plan 42. The main goods and non-consulting services to be procured in the project are listed in Table 2 below. Table 2: List of Goods and Non-Consulting Services Contract Packages to be procured Ref. Description Estimated Procurement Domestic Review by World Comments/ No. Cost Method Preference Bank Completion date (US$ million) (yes/no) (Prior/Post) 1. Suppliers contract 12 Direct NO Prior October 2014 for feeding and Contracting- related services UN Agency 2. Suppliers Contract 5 Direct NO Prior August 2015 for seeds, foods Contracting- production and UN Agency related services 43. Prior review thresholds for Goods and Non-consultant services. There are no ICB and NCB under World Bank procurement guidelines on this operation. All Direct Contracting will be subject to prior review by the World Bank. 44. The main consulting assignments of the project are listed in the table 3 below. 33 Table 3: List of Consulting Assignments with Selection Methods and Time Schedule Ref. No. Description of Assignment Estimated Selection Review by Comments/ Cost Method World Bank Completion date (US$ million) (Prior / Post) 1. Technical Assistance on food 3 Single Prior August 2015 security including training Source Selection- UN Agency 45. Prior review thresholds for consultant services. Consultant services estimated to cost above US$200,000 for firms and US$100,000 for individuals per contract, and Single Source selection of consultants (firms and individuals) will be subject to prior review by the World Bank. Similarly, all audit contracts will be subject to prior review, as will be the first contracts to be awarded in accordance with each selection method of consulting firms and individual consultants, regardless of contract amount. Short Lists of Consultants for Assignments of Engineering Designs & Contract Supervisions estimated to cost less than US$200,000 and all other Consultancy Assignments whose estimated cost don’t exceed US$100,000 per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines. Environmental and Social (including safeguards) 46. Institutional Arrangement. A number of Ministries and other public agencies will be involved in the implementation of the Project, including Agriculture, Forestry, Environment, and Livestock. Each of these will be responsible for applying the safeguards screening and mitigation requirements to its own tasks, under the coordination of Ministry of Environment and Forestry. Within each entity, a Safeguard Focal Point (SFP) might be identified to facilitate the overseeing of the implementation of the Framework. The WFP and FAO will ensure that environmental and social safeguards are properly addressed during project implementation. 47. Public consultation. The ESSAF will be shared with all relevant stakeholders, including public agencies and para-statals involved in Project implementation, development partners, NGOs, and of course the concerned communities. It will be disclosed within the country by the Ministry of Environment and that of Agriculture, in French and other local languages. It will also be made available at the World Bank Infoshop. Specific safeguards documents including mitigation plans that are prepared subsequently will also be disclosed. Finally, FAO and WFP will make the draft reports publicly available to Project-affected groups, local NGOs, involved communities, and Recipient agencies at the local and national level. Monitoring & Evaluation 48. The Monitoring and Evaluation (M&E) system for the project will be participatory and handled by FAO and WFP. A study will be undertaken by WFP and FAO to evaluate the impact of the project’s interventions including whether the increased access to food, seed and equipment has had intended impact on nutrition and production levels. 49. Monitoring tools and expanding the existing database for nutrition activities, school feeding, and food distribution interventions should be refined. WFP M&E focal points at country 34 and sub-office level and FAO relevant staff will be trained. Partner NGOs, UN agencies, and Government technical ministries will be involved in the development of M&E tools to ensure integration and coherence. WFP also plans to use NGOs for third-party monitoring in areas that remain inaccessible to staff. Food security, market and nutrition indicators will be monitored jointly with partner NGOs through an ACF-led multi-sectoral surveillance system and monthly surveillance bulletins issued. 35 ANNEX 4: OPERATIONAL RISK ASSESSMENT FRAMEWORK (ORAF) Central African: CAR Emergency Food Crisis Response and Agriculture Re-launch Project (P149512) Project Stakeholder Risks Stakeholder Risk Rating High Risk Description: Risk Management: Given its emergency nature, the project activities and Continuous consultations will be conducted during preparation with borrower to identify strategy for meeting development objectives may not be any concerns and those of other important stakeholders. well aligned with Government’s priority in the context of Resp: Status: Stage: Recurrent: Due Date: Frequency: insecurity, food insecuriy and emergency and needs. Bank In Progress Both Continuous Implementing Agency (IA) Risks (including Fiduciary Risks) Capacity Rating High Risk Description: Risk Management: The operation will be conducted in a dangerous and FAO and WFP will be responsible for the implementation of the project with the support dynamic environment with limited capacity and of decentralized staff of the Ministry of Rural Development and NGOs. infrastructure in place. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both In Progress Both Continuous Governance Rating High Risk Description: Risk Management: Limited capacity in the context of high insecurity will A strong fiduciary and technical implementation management oversight will be hinder governance. established. Communication equipment and resources will be provided to facilitate access by all stakeholders to the information needed for effective decision-making. Partner International NGOs will support governance oversight. Resp: Status: Stage: Recurrent: Due Date: Frequency: Risk Management: A strong fiduciary and technical implementation management oversight will be established. Communication equipment and resources will be provided to facilitate access by all stakeholders to the information needed for effective decision-making. Partner International NGOs will support governance oversight. 36 Resp: Status: Stage: Recurrent: Due Date: Frequency: Both In Progress Both Project Risks Design Rating Substantial Risk Description: Risk Management: Even quite simple, the project design may not be The project benefited with the knowledge from the previous projects in CAR that are sufficiently robust in the context of high insecurity, food similar (CAR Food Response Project and CAR Agro-Pastoral and recovery Project) and insecurity, vulnerability to achieve its goals. from assessments carried out in 2012 and 2013. The project combines livelihood assistance, human capital protection, productive investments, training and organizational support. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both In Progress Both Social and Environmental Rating High Risk Description: Risk Management: Safeguards instruments will be prepared and mitigation measures will be implemented. Possible significant negative climate change effects or Environmental and Social Management Plans will be prepared as and when necessary increase in instability and insecurity may make difficult during implementation. Social safeguard issues will be anticipated and addressed in the the implementation of the project. PIM. Particular attention will be paid to social and environmental aspects during project supervision. A capacity building plan will be implemented at different levels. Resp: Status: Stage: Recurrent: Due Date: Frequency: Targeting may exacerbating ongoing tensions in country Both In Progress Both by favoring one region/group/area over another, displaced persons. Risk Management: Targeting of beneficiaries populations will be done at the community level and will be based on the communities’ socio-economic profile (with special consideration given to the proportion of female-headed households), coping strategies, food stock availability, food consumption patterns, and households hosting. In addition, regular consultations with affected populations and communications campaign to local religious leaders to inform their communities about distributions will be implemented. Resp: Status: Stage: Recurrent: Due Date: Frequency: Both In Progress Both Program and Donor Rating Low 37 Risk Description: Risk Management: Possible poor coordination/harmonization between FAO The project has been designed as a self- standing project with no co-financing from other and WFP, and partners supporting humanitarian and food partners. The World Bank will work with other donors to ensure coordination, security efforts in CAR. complementarity and synergy. Resp: Status: Stage: Recurrent: Due Date: Frequency: Bank In Progress Both Delivery Monitoring and Sustainability Rating High Risk Description: Risk Management: In a post-conflict country public financial resources from The Project will sustain activities by (i) improving livelihood; and (ii) financing both hard Government may be lacking and compromise and soft investments to restore production capacity and improve food security. sustainability of Project’s activities. Weak monitoring and Resp: Status: Stage: Recurrent: Due Date: Frequency: evaluation may limit the Project delivery of results and impacts. Bank In Progress Implementation Other (Optional) Rating Substantial Risk Description: Risk Management: Climate change effects, natural disasters (including The project will promote adapted agricultural practices and techniques. drought, floods, and pests) as well as violence may lead to Resp: Status: Stage: Recurrent: Due Date: Frequency: of the failure of the project in an emergency context. Client Not Yet Due Implementation Continuous Other (Optional) Rating Substantial Risk Description: Risk Management: Market uncertainly may impact negatively on supply, The project will support provision of livelihood assistance of and agricultural production availability, and access to fertilizers, machinery, and on inputs and equipment and training. commercialization in the context of emergency. Resp: Status: Stage: Recurrent: Due Date: Frequency: Client Not Yet Due Implementation Overall Risk Overall Implementation Risk: Rating High Risk Description: Risk during Project implementation is assessed as high. The proposed project is expecting to be implemented in a high volatile and insecure situation with limited capacity and infrastructure on the ground. 38 ANNEX 5: IMPLEMENTATION SUPPORT PLAN Central African Republic: Emergency Food Crisis Response and Agriculture Re-launch Project Strategy and Approach for Implementation Support 1. The implementation of the project is entrusted to WFP for component A and FAO for component B and will comply with contracts that will be signed with these two implementing agencies. Implementation Support Plan 2. To accelerate the project readiness for implementation, an implementation action plan has been agreed with FAO, WFP and the Recipient (See in the page below). 39 Draft implementation action plan for the first 6 months after Project approval Implementation date Activities Actions Expected Results Responsible actor or time after approval Disbursement conditions Contract signed with FAO and WFP, FAO, WFP including implementing Contracts prepared Contracts signed March 10, 2014 Government, WB manuals and procedures Documents approved Safeguard documents prepared Recruit the consultants FAO, WFP April 30, 2013 and disclosed Start up Work Plan and Budget and Prepare a WPB&PM WPB and PP validated FAO, WFP March 15, 2014 Procurement Plan (WPB & PP) Launching workshop Official Project Launching Prepare the Launching workshop FAO, WFP March 30, 2014 organized First quarterly progress report Prepare the report Report disclosed FAO, WFP June 30, 2014 Second quarterly progress report Prepare the report Report disclosed FAO, WFP September 30, 2014 40 ANNEX 6: ENVIRONMENTAL AND SOCIAL SCREENING AND ASSESSMENT FRAMEWORK Central African Republic: Emergency Food Crisis Response and Agriculture Re-launch Project Introduction 1. The Environmental and Social Screening and Assessment Framework (ESSAF) is consistent with Bank operational policies and procedures, investment operations subject to OP/BP 10.00, Investment Project Financing under paragraph 11 at the possibility of undertaking projects in Situations of Urgent Need of Assistance or Capacity Constraints. The Bank may provide support through Investment Project Financing for an exceptional arrangement following paragraph 47 of Investment Project Financing policy. In compliance with BP 10.00, this ESSAF provides general policies, guidelines, codes of practice and procedures to be taken into consideration and integrated as needed into the implementation of World Bank-supported the CAR Emergency Food Crisis Response and Agriculture Re-launch Project. This Framework has been developed to ensure compliance with the World Bank’s safeguards policies during the Project implementation. The objective of this ESSAF is to ensure that activities under the proposed emergency operations will address the following issues: (i) Minimize environmental and social degradation as a result of either individual subprojects or their cumulative effects; (ii) protect and preserve human health; (iii) enhance positive environmental and social outcomes; (iv) prevent or adequately compensate any loss of livelihood caused by the Project. Project context 2. The proposed CAR Emergency Food Crisis Response and Agriculture Re-launch Project (P149512) for an equivalent amount of US$20 million will aim at (i) restoring livelihood activities and assets destroyed by the ongoing conflicts while addressing the severe food crisis in the country; and (ii) contributing to ongoing efforts of revitalizing the country’s agriculture sector ahead of the next planting season which starts in March 2014. 3. The PDO is to protect and rebuild livelihoods, human capital, particularly of children, and to re-launch the productivity of the agriculture sector. 4. Due to the limitation of viable means that would allow effective and immediate implementation of activities in-country and also due to absence of implementation capacity on the ground, the project will be designed with two contracting components which will be implemented by FAO and WFP. 5. The project design will be kept simple and build on existing activities currently being implemented by other donors. The proposed operation would comprise the following two components: 6. Component A: Human capital protection and Livelihood assistance (US$12 million equivalent). The objective of this component will be to improve access to food for the targeted beneficiaries. The component will finance the provision of (i) blanket supplementary feeding (BSF) to about220,000 young children (6-59 months old) to prevent a spike of malnutrition and food assistance to up to 1.1 million affected people; (ii) targeted supplementary feeding (TSF) to 7,5 00 pregnant and lactating women (PLW) and 33,500 children aged 5-59 months that suffer from moderate acute malnutrition; and (iii) emergency school feeding (ESF) to 197,000 41 schoolchildren children in the re-opened schools. This component will be implemented by the World Food Program (WFP), in order to minimize implementation delays. 7. Component B: Re-launch of the Agriculture Sector (US$8.00 million equivalent). This component will aim at restoring food production capacity for the most affected people in the food insecure areas. The component will finance purchase of groundnut, maize, rice and sorghum for subsidized distribution to 20 seeds producers groups, 200 women groups, and 23,125 households to restore domestic food production capacity. In addition it will support procurement of equipment of farm machinery for subsidized distribution to the same beneficiaries, and rehabilitation/construction of post-harvest/seed storage facilities at community/village level and for the Central African Institute for Agricultural Research (ICRA). Component B will also provide training to the beneficiary farmers and to 50 field personnel of the Ministry of Rural Development who will participate in the implementation of the project. General Principles 8. Recognizing the emergency nature of the proposed emergency operation and the related need for providing immediate assistance, while at the same time ensuring due diligence in managing potential environmental and social risks, the ESSAF is based on the following principles:  The proposed operation will support multiple subprojects, the detailed designs and locations of which will be known only during implementation. To ensure effective application of the World Bank’s safeguard policies, the ESSAF provides guidance on the approach to be taken during project implementation for the selection, screening and design of subprojects and the planning of mitigation measures; category A activities will not be eligible for funding.  No resettlement issues are expected in any of the proposed subprojects under the emergency Project.  Socio-economic opportunities as employment, access to basic services within the subprojects areas will be targeted and extended, as much as possible, to the affected communities and households that lost their livelihoods due to several rebellions in DRC eastern. In all subprojects which require consultations with local communities or beneficiaries, consultations will be conducted to elicit the views of the male and female population; and  Consultation and disclosure requirements will be simplified to meet the special needs of this operation. The full ESSAF will be disclosed in the concerned sector ministries and other public places in DRC and at the World Bank InfoShop. Compliance with World Bank safeguards policies 9. The Project, which for purposes of safeguards has been classified as Category B, is being prepared under OP 10.00, paragraph 11 as an emergency operation. For this reason, preparation needs to be expedited, even as appropriate environmental and social measures are being taken into consideration. Activities supported by the proposed operation are expected to have certain site-specific adverse environmental and social impacts; therefore, the following Safeguards policies are triggered: OP/BP 4.01 (Environmental Assessment); OP 4.09 (Pest Management), OP/BP 4.10 (Indigenous People). 10. OP/BP 4.01 - Environmental Assessment – This policy is triggered because the Project will support investments in basic agricultural infrastructure to benefit rural communities, 42 productive assets for producer organizations, and income generating assets for women. All these activities may have environmental impacts that need to be managed appropriately. The Project will also support activities that will have a positive impact on the environment. The ESSAF contains sample TORs for Environmental Assessments that may be needed for Project-supported activities, as well as screening guidelines to be used by contractors hired to implement Project- supported works (e.g., rehabilitation of rural roads …). Based on the outcomes of the screening process, Environmental and Social Impact Assessments (ESIAs) or Environmental and Social Management Plan (ESMPs) will be prepared as necessary. An ESMF will be prepared and disclosed no later than 120 days after project effectiveness. 11. OP/BP 4.09 - Pest Management. This policy is triggered because the Project will support scaling up and/or intensification of agricultural and livestock production activities. Project beneficiaries are likely to adopt integrated pest management practices that may involve increased use of chemical pesticides, which could have negative environmental and health impacts (especially since river and lake water is used for drinking purposes throughout the project area). The Recipient will address OP 4.09 requirements by using the existing Pests and Pesticide Management Plan (PPMP) developed for the ongoing IDA funded agriculture project (CAR Agro-Pastoral Recovery Project P124278) to prepare an updated PPMP which will be disclosed prior to Board approval. The PPMP will include a number of actions that will reduce the exposure of farming communities to pesticides used in agricultural and livestock production systems. 12. Indigenous People (OP/BP 4.10): The proposed Project will focus on rural areas of CAR where Pygmies, a minority ethnic group, are present. An IPP will be prepared to ensure that the project will respect the rights, interests, dignity and culture of the Indigenous people as well as to ensure that they will benefit from the project. The IPP will be elaborated in a participatory manner through: (i) discussions with indigenous people individuals or indigenous people households; (ii) taking into account the point of view of organizations supporting the promotion of the indigenous people; (iii) meetings with administrative authorities and local elected officials; and (iv) discussions with technical services and international and national NGOs. The IPP includes (i) a baseline, (ii) an evaluation of possible impacts of the project, (iii) activities to be conducted to ensure similar benefits towards indigenous people than towards other communities, (iv) monitoring and evaluation arrangements and (v) a budget. Recognizing the emergency nature of the project, the processing will be flexible. The IPP will be disclosed no later than 120 days after project effectiveness. 13. OP/BP 4.12 - Involuntary Resettlement. The potential social impacts of components under the proposed project will be small-scale and site-specific. So it is anticipated that project activities might not lead to land acquisition or major restriction of access to sources of livelihood. The OP. 4.12 will not be triggered. 14. OP/BP 4.11 – Physical Cultural Resources. Although chances are minimal for activities related to this project to affect cultural sites, this policy is triggered in case there happens to be possibility of discovering archaeological artifacts, unrecorded graveyards and burial sites, etc. in project areas. 15. The following safeguards policies are not triggered: 43  OP/BP 4.04 – Natural Habitats – The project will not take place in or near natural habitats.  OP/BP 4.12 – Involuntary Resettlement – the project activities might not lead to land acquisition.  OP/BP 4.36 – Forests – While the project may involve some local tree planting activities, it does not involve the significant conversion of forests, nor does it involve large-scale reforestation/afforestation.  OP/BP 4.37 – Dam Safety – The proposed operation will finance the rehabilitation of small irrigation infrastructure, small check-dams and the replacement of old hydraulic equipment/material, none of which pose dam safety issues.  OP/BP 7.50 – Projects on International Waterways – No International Waterways affected.  OP/BP 7.60 – Projects in Disputed Areas – There are no disputed areas in the country. 16. The ESSAF and or other aforementioned documents related to Safeguards will be cleared by the World Bank and disclosed within the country, in the sector ministries, in the projects areas and through the World Bank Infoshop. Safeguards screening and mitigation 17. The ESSAF developed for this Project is aimed at ensuring due diligence to avoid causing harm or exacerbating social tension and to ensure consistent treatment of social and environmental issues by CAR and service providers. The purpose of the ESSAF is also to assist WFP and FAO (the main implementing agencies) and all concerned public agencies in screening Project-supported activities for their likely social and environmental impacts, identifying documentation and preparation requirements, and piloting the investments. At a minimum, detailed descriptions of Project-supported activities and their exact locations will have to be made available to facilitate the monitoring and evaluation of Project-supported activities. In addition, the ESSAF provides a framework for the establishment of guidelines for land acquisition and eventual compensation, codes of practice for the prevention and mitigation of potential environmental and social impacts, and safeguards procedures for inclusion in the technical specifications of contracts. 18. The following guidelines, codes of practice and requirements will constitute the framework of reference for the selection, design, contracting, monitoring and evaluation of subprojects. So, the safeguard screening and mitigation process will include:  A list of negative characteristics rendering a proposed activity ineligible for support (see Attachment 1);  Steps for Screening Potential Environmental and Social Impacts, Mitigation Measures, and Implementation Procedures (see Attachment 2);  A proposed checklist of likely environment and social impacts to be filled out for each subproject or group of activities (see Attachment 3);  Procedures for the protection of cultural property, including the chance discovery of archaeological artifacts, unrecorded graveyards and burial sites, etc. (see Attachment …);  Format to Document Contribution of Assets (see Attachment 4);  Relevant elements of the codes of practice for the prevention and mitigation of potential environmental impacts (see Attachment 5);  A sample Environmental Safeguards procedures for Inclusion in the Technical Specifications of Contracts (see Attachment 6); and 44  Guidelines for Preparation of Environmental and Social Management Plans (See attachment 7). Responsibilities for safeguards screening and mitigation 19. A number of Ministries and other public agencies will be involved in the implementation of the Project, including Agriculture, Forestry, Environment, and Livestock. Each of these will be responsible for applying the safeguards screening and mitigation requirements to its own tasks, under the coordination of Ministry of Environment and Forestry (MEF). Within each entity, a Safeguard Focal Point (SFP) may be identified to facilitate the overseeing of the implementation of the Framework. The WFP and FAO will ensure that environmental and social safeguards are properly addressed during project implementation. Capacity building and monitoring of safeguard framework implementation 20. In general, the Borrower knows and already has experience with Bank safeguard policies through other bank-funded projects in the agriculture and rural development sector. The project will thus rely on the expertise of the General Directorate of Environment and consultants recruited by the Project Coordination Unit of the proposed project. As part of the capacity building to be provided for implementation of the proposed Credit, the Safeguards Focal Point and relevant staff of the concerned Ministries, service providers, and decentralized agricultural staff will also receive training in ESSAF’s application. During supervision of these activities, the World Bank will assess the implementation of the ESSAF (e.g. Environmental and Social Impact Assessments (ESIAs), ESMPs, PMP and IPP). The Proposed Project will therefore be able to draw on previous experience, with further support to be provided by FAO and WFP as service providers. Information sharing to the public will be part of the capacity building plan as the project is considered a poverty reduction program and thus will be conducted more inclusively through various local media sources. Consultation and disclosure 21. IDA funding will support a number of agricultural and livestock production investments classified as Environment Category B to which World Bank safeguard policies relating to consultation and disclosure will apply. The two service providers will consult Project-affected groups and local non-governmental organizations regarding the Project’s likely environmental and social impacts, and it will take their views into account. 22. The two service providers will initiate these consultations as early as possible. To ensure that the consultations are meaningful, it will provide relevant material in a timely manner prior to consultation, in a form and in language(s) that are understandable and accessible to the group(s) being consulted. As required for all Environment Category B projects, when the studies are completed, the implementing agencies will provide these groups with a summary of the main conclusions of the ESIA report. 23. The preparation and implementation of the relevant safeguard instruments as indicated in this ESSAF will require participation by relevant stakeholders in the preparation of environmental and social assessments, as well as in the development and implementation of mitigation plans. WFP and FAO will make all reasonable efforts to consult with the affected people and communities, as well as with relevant NGOs, to ensure that local community needs have been incorporated and potential conflicts resolved. 45 24. The ESSAF will be shared with all relevant stakeholders, including public agencies and para-statals involved in Project implementation, development partners, NGOs, and of course the concerned communities. It will be disclosed within the country by the Ministry of Environment and that of Agriculture, in French and other local languages. It will also be made available at the World Bank Infoshop. Specific safeguards documents including mitigation plans that are prepared subsequently will also be disclosed. Finally, FAO and WFP will make the draft reports publicly available to Project-affected groups, local NGOs, involved communities, and Recipient agencies at the local and national level. Implementation support 25. Regular review should be specified to assess progress on environmental and social safeguards, achievement of overall objectives, as well as the role of the different partners, with a view to eventually reorient the Project, if needed. Guidelines describing the type of information wanted and the presentation of feedback should also be highlighted. Guidelines for preparation of Environmental and Social Management Plans (ESMPs) 26. Once the potential impacts of relevant activities have been identified, the next step of the Environmental Assessment process involves the identification and development of measures aimed at eliminating, offsetting, and/or reducing these impacts during implementation and operation of the Project, via an ESIA/ESMP, to levels that are environmentally acceptable. ESIAs/ESMPs provide an essential link between the impacts predicted and mitigation measures specified within the Environmental Assessment and implementation and operation activities. Institutional arrangements 27. Institutions/entities responsible for implementing mitigation measures and for monitoring their performance should be identified clearly. Where necessary, mechanisms for institutional coordination should be identified, as monitoring often involves more than one institution. List of Attachments Attachment 1 List of Negative activities attributes Attachment 2 Steps for Screening Potential Environmental and Social Impacts, Mitigation Measures, and Implementation Procedures Attachment 3 Checklist of Possible Environmental and Social Impacts of Projects Attachment 4 Format to Document Contribution of Assets Attachment 5 Codes of Practice for Prevention and Mitigation of Environmental Impacts Attachment 6 Safeguards Procedures for Inclusion in the Technical Specifications of Contracts Attachment 7 Guidelines for Preparation of Environmental and Social Management Plans 46 Attachment 1 List of Negative activities attributes Activities with any of the following attributes will be ineligible for support under the proposed CAR Emergency Food Crisis Response and Agriculture Re-launch Project Attributes of Ineligible activities GENERAL CHARACTERISTICS Concerning significant conversion or degradation of critical natural habitats. Damages on cultural property, including but not limited to, any activities that affect the following sites:  Archaeological and historical sites; and  Religious monuments, structures and cemeteries. Requiring pesticides that fall in WHO classes IA, IB, or II. Solid Waste New disposal site or significant expansion of an existing disposal site. Irrigation New irrigation and drainage schemes. Dams Construction of dams more than 15 meters high. Rehabilitation of dams more than 15 meters high. Income Generating Activities Activities involving the use of fuel wood, including trees and bush. Activities involving the use of hazardous substances. 47 Attachment 2 Steps for Screening Potential Environmental and Social Impacts, Mitigation Measures and Implementation Procedures 1. The selection, design, contracting, monitoring and evaluation of project activities will be consistent with the guidelines, codes of practice and requirements listed below and included as attachments to this document. Screening of potential environmental and social safeguards impacts, mitigation and management measures and implementation procedures will follow these steps: 2. Step 1: Screening of potential environmental and social safeguards impacts, and determination of the appropriate set of safeguard instrument. 3. During the preparation of activities, implementing agencies will ensure that technical design can avoid or minimize environmental and social impacts, including land acquisition. 4. A proposed checklist of likely environmental and social impacts, to be filled out for each activity, will be used to determine the type and scope of the environmental and social safeguards impacts (Attachment 2). 5. Step 2: Definition of the environmental and social safeguards instruments for the Project and for each project activity. 6. WFP and FAO will determine and prepare appropriate instruments for mitigating environmental and social safeguards impacts identified in the screening. 7. A sample Environmental Safeguards enforcement procedure for inclusion in the technical specifications of construction contracts is on Attachment 6. 8. Step 3: Review of the Safeguards Screening Summary 9. The WFP and FAO will retain a copy of the Safeguards Screening Summary for possible review by the MEF and the World Bank. The review, which may be conducted on sample basis, will verify the proper application of the screening process, including the scoping of potential impacts and the choice and application of instruments. 10. Step 4: Preparation of safeguards instruments 11. The WFP and FAO will prepare the safeguards instruments, including the ESMP and IPP, as required. The ESMP and IPP and Resettlement Action Plan (RAP) will be prepared in consultation with affected peoples and with relevant NGOs, as necessary. The ESMP and IPP and the RAP will be submitted to the MEF, for review, prior to the submission to the World Bank for approval. The documentation of the process and agreement for land donation will be the responsibility of the WFP and FAO, in consultation with the Ministry of Land Management, Urbanism and Habitat. 12. Step 5: Application of the safeguards instruments. 48 13. Appropriate mitigation measures will be included in the bidding documents and contract documents to be prepared by WFP and FAO. Compliance by the contractors will be monitored in the field by the project engineers, working under close supervision. The performance of the contractors will be documented and recorded for possible later review. 14. If applicable, WFP and FAO will ensure that civil works will begin only when the land donation process has been completed. 15. WFP and FAO will supervise and monitor the overall safeguards implementation process and prepare a progress report on the application of safeguards policies during the planning, design, and construction phases of the Project. WFP and FAO will also develop the reporting requirements and procedures to ensure compliance of the contractors; conduct public consultation and public awareness programs; and carry out periodic training for field engineers and contractors as appropriate. 49 Attachment 3 Checklist of Possible Environmental and Social Impacts of Projects This Form is to be used by WFP and FAO in screening proposals for project activities. Note: One copy of this form and accompanying documentation will be kept in FAO and WFP offices, and one copy to be sent to the World Bank Task Team Leader.  Name of Project:  Description of activity:  Proposing agency:  Activity location:  Objective of the activity:  Estimated cost:  Proposed date of commencement of work:  Community to be included in the location:  Relevant details:  Any environmental and social issues:  Area of land needed (if there):  Number of land owners:  Scheme for land acquisition (choose appropriate ones) (if appropriate): A. Land donation B. Cash compensation C. Other scheme  Estimated costs:  Proposed starting date of works:  Designs / plans / specifications reviewed: Yes __ No __  Other comments:  Completed by:  Date:  Reviewed by:  Date: 50 Site-related Issues No Issues Yes No Comments A. Zoning and Land Use Planning Will project activities affect land use zoning and 1. planning or conflict with prevalent land use patterns? Will project activities involve significant land 2. disturbance or site clearance? Will activities be subject to potential encroachment 3. by urban or industrial use or located in an area intended for urban or industrial development? Are project activities located in an area susceptible to 4. landslides or erosion? Are project activities located on prime agricultural 5. land? B. Utilities and Facilities Do project activities require the setting up of 6. ancillary production facilities? Will project activities require significant levels of accommodation or service amenities to support the 7. workforce during construction (e.g., contractor will need more than 20 workers)? C Water and Soil Contamination Will project activities require large amounts of raw 8. materials or construction materials? Will project activities generate large amounts of 9. residual wastes, construction material waste or cause soil erosion? Will project activities result in potential soil or water 10. contamination (e.g., from oil, grease and fuel from equipment yards)? Will project activities lead to contamination of ground and surface waters by herbicides for 11. vegetation control and chemicals (e.g., calcium chloride) for dust control? Will project activities lead to an increase in suspended sediments in streams affected by road cut 12. erosion, decline in water quality and increased sedimentation downstream? Will activities involve the use of chemicals or 13. solvents? Will project activities lead to the destruction of 14. vegetation and soil in the right-of-way, borrow pits, waste dumps, and equipment yards? 51 No Issues Yes No Comments Will project activities lead to the creation of stagnant water bodies in borrow pits, quarries, etc., 15. encouraging for mosquito breeding and other disease vectors? Are project activities located in a polluted or 16. contaminated area? D. Noise and Air Pollution Hazardous Substances Will project activities increase the levels of harmful 17 air emissions? 18. Will project activities increase ambient noise levels? Will project activities involve the storage, handling 19. or transport of hazardous substances? E. Fauna and Flora Will project activities involve the disturbance or 20. modification of existing drainage channels (rivers, canals) or surface water bodies (wetlands, marshes)? Will project activities lead to the destruction or damage of terrestrial or aquatic ecosystems or 21. endangered species directly or by induced development? Will project activities lead to the disruption/destruction of wildlife through 22. interruption of migratory routes, disturbance of wildlife habitats, and noise-related problems? F. Destruction/Disruption of Land and Vegetation Will project activities lead to unplanned use of the 23. infrastructure being developed? Will project activities lead to long-term or semi- 24. permanent destruction of soils in cleared areas not suited for agriculture? Will project activities lead to the interruption of 25. subsoil and overland drainage patterns (in areas of cuts and fills)? Will project activities lead to landslides, slumps, 26. slips and other mass movements in road cuts? Will project activities lead to erosion of lands below 27. the roadbed receiving concentrated outflow carried by covered or open drains? Will project activities lead to long-term or semi- 28. permanent destruction of soils in cleared areas not suited for agriculture? 52 No Issues Yes No Comments Will project activities lead to health hazards and 29. interference of plant growth adjacent to roads by dust raised and blown by vehicles? G. Cultural Property Will project activities have an impact on 30. archaeological or historical sites, including historic urban areas? Will project activities have an impact on religious 31. monuments, structures and/or cemeteries? Have Chance Finds procedures been prepared for use 32. in project activities? Are project activities located in an area with 33. designated physical cultural resources, such as archaeological, historical and/or religious sites? H. Expropriation and Social Disturbance Will project activities involve land expropriation or 34. demolition of existing structures? Will project activities lead to induced settlements by 35. workers and others causing social and economic disruption? Will project activities lead to environmental and 36. social disturbance by construction camps? Are project activities located in an area from which 37. people have been displaced? Are project activities located in an area where PAPs 38. are temporarily relocated? Are project activities located in a densely populated 39. area? I. Games, reserves and Natural Habitat Do project activities require land acquisition? [Note: 40. If YES, fill in the land acquisition form] Will project activities negatively impact livelihoods? 41. [Note: Describe separately if YES] Are project activities located in an area with 42. designated natural reserves or protected areas? Are project activities located in an area with unique 43. natural features? Are project activities located in an area with 44. endangered or conservation-worthy ecosystems, fauna or flora? 53 No Issues Yes No Comments Are project activities located in an area falling within 500 m of natural forests, protected areas, wilderness 45. areas, wetland, biodiversity, critical habitats, or sites of historical or cultural importance? Are project activities in an area which would create a 46. barrier for the movement of conservation-worthy wildlife? Are project activities located close to groundwater 47. sources, surface water bodies, watercourses or wetlands J. Pesticides and Agricultural Chemicals Involve the use of pesticides or other agricultural 48. chemicals, or increase existing use? Cause contamination of soil by agrochemicals and 49. pesticides? 54 Attachment 4 Format to Document Contribution of Assets The following agreement has been made on............................ day of..........................………. between ...............................................resident of ...................................................(the Owner) and ……………………………………………….(the Recipient) 1. That the Owner holds the transferable right of ...............................………………………. …………………………………………………………………... land (m2)/structure/asset in.........………………………………………………………………………..……………. 2. That the Owner testifies that the land/structure is free of squatters or encroachers and not subject to other claims. That the Owner hereby grants to the Recipient this asset for the construction and development of ................................for the benefit of the villagers and the public at large. (Either, in case of donation) 3. That the Owner will not claim any compensation against the grant of this asset. (Or, in case of compensation :) 4. That the Owner will receive compensation against the grant of this asset as per the attached Schedule. 5. That the Recipient agrees to accept this grant of asset for the purposes mentioned. 6. That the Recipient shall construct and develop the……………………and take all possible precautions to avoid damage to adjacent land/structure/other assets. 7. That both the parties agree that the………………………so constructed/developed shall be public premises. 8. That the provisions of this agreement will come into force from the date of signing of this deed. ______________________________ _____________________________ Signature of the Owner Signature of the Recipient Witnesses: 1. ______________________________ 2. ______________________________ (Signature, name and address) 55 Attachment 5 Codes of Practice for Prevention and Mitigation of Environmental Impacts Potential Impacts Prevention and Mitigation Measures Construction or rehabilitation of buildings and refurbishment of offices and facilities  Disease caused by inadequate  Environmentally appropriate site selection led by application provision of water and sanitation of the environmental and social screening form provided in services this ESSAF, design and construction guidance, and a procedure for ensuring that this guidance is followed before  Deforestation caused by construction is approved unsustainable use of timber and wood-firing of bricks.  Replace timber beams with concrete where structurally possible.  Generation of waste materials  Ensure fired bricks are not wood-fired. Where technically and  Disturbances during construction economically feasible, substitute fired bricks with alternatives, (dust, noise) and contamination such as sun-dried mud bricks, compressed earth bricks, or from inadequate sanitation facilities rammed earth construction.  Ensure engineering designs include adequate sanitary latrines and access to safe water  Handling of waste during building renovation will require appropriate disposal of waste materials and the protection of the workforce in the event of asbestos removal or that of other toxic materials Rehabilitation and construction of rural roads Disruption of drainage:  Hampers free drainage, causes  Design to provide adequate drainage and to minimize changes stagnant pools of water in flows, not limited to the road reserve  Increased sediments into ponds,  Provision of sufficient number of cross drains streams and rivers due to erosion  Balancing of cut and fill from road tops and sides  Revegetation to protect susceptible soil surfaces  Increased run-off and flooding  Rehabilitation of borrow areas 56 Erosion:  Erosion of land downhill from the  Design to prevent soil erosion and maintain slope stability road bed, or in borrow areas  Construction in the dry season  Landslides, slips or slumps  Protection of soil surfaces during construction  Bank failure of the borrow pit  Physical stabilization of erodible surfaces through turfing, planting a wide range of vegetation, and creating slope breaks  Rehabilitation and re-grading of borrow pits and material collection sites Loss of vegetation  Balancing of cut and fill  Revegetation to protect susceptible soil surfaces  Minimize loss of natural vegetation during construction  Revegetation and replanting to compensate any loss of plant cover or tree felling Loss of access  Design to include accessibility to road sides in case roadbed is raised  Alternative alignments to avoid bisecting villages by road widening Impacts during construction:  Fuel wood collection  Provision of fuel at work camps to prevent cutting of firewood  Disease due to lack of sanitation  Provision of sanitation at work camps  Introduction of hazardous wastes  Removal of work camp waste, proper disposal of oil, bitumen and other hazardous wastes  Groundwater contamination (oil, grease)  Management of construction period worker health and safety  Accidents during construction  Use archaeological chance find procedures and coordinate with appropriate agencies  Potential impacts to cultural property Increased migration from nearby cities  Provide comprehensive community participation in planning, and Migration issue to be resolved through local conflict ) resolution system 57 Dams Construction of dams lower than 5 meters or rehabilitation of dams lower than 15 meters. Injury, death or loss of productive  Application of generic dam safety measures and rapid resources caused by dam failure hydrological assessment by qualified engineer  For earthen dams, crushing of earth lumps, watering to near optimal moisture content, and compacting during construction  Design of earthen dams to prevent excessive seepage through the dam-body and piping at or near the toe or abutment of the dam  Design to incorporate spillway to prevent over-topping  Local awareness-raising for breach situations Irrigation and Drainage Siltation and erosion  Plan disposal of spoil material from cleaned canals to ensure it will not wash back into the system, and is not deposited on fields without the owners’ permission  Re-grading and rehabilitation of borrow areas or pits Water-logging and salinization  Incorporation of adequate drainage to prevent water-logging and salinization Over-exploitation of aquifers  Analysis of the sustainability of groundwater yield, if increased abstraction is proposed Injury, death or loss of productive  See section on dams, above resources caused by dam failure Livestock Unsustainable grazing  Before livestock are purchased, grazing requirements for the new and projected herd should be estimated, and legal access to sufficient sustainable grazing ensured 58 Small Scale Agricultural Production Environment Impacts:  Avoid infringing on protected areas, critical habitats or areas with significant biodiversity (e.g., wetlands)  Loss of vegetative cover, decrease in soil fertility  Apply pesticides, herbicides and fertilizers at recommended times and doses  Possible pesticide, herbicide and fertilizer use leading to soil and  Educate population in the proper use, storage and disposal of water pollution pesticides, herbicides and fertilizers  Irrigation system may break down  Ensure that construction and rehabilitation of irrigation and not be repairable systems are carried out by using materials easily accessible through local market  Potential diversion of water resources from its natural course/location Social Impacts:  Ensure that inhabitants around water reserves are not deprived  Conflict over user rights of of access to water due to irrigation and other activities irrigation systems 59 Attachment 6 Safeguards Procedures for Inclusion in the Technical Specifications of Contracts I. General 1. The Contractor and his employees shall adhere to the mitigation measures set down and take all other measures required by the Engineer to prevent harm, and to minimize the impact of his operations on the environment. 2. Remedial actions which cannot be effectively carried out during construction should be carried out on completion of each subproject and before issuance of the “Taking over certificate”: i. these subproject locations should be landscaped and any necessary remedial works should be undertaken without delay, including grassing and reforestation; ii. water courses should be cleared of debris and drains and culverts checked for clear flow paths; and iii. borrow pits should be dressed as fish ponds, or drained and made safe, as agreed with the land owner. 3. The Contractor shall limit construction works to between 6 am and 7 pm if it is to be carried out in or near residential areas. 4. The Contractor shall avoid the use of heavy or noisy equipment in specified areas at night, or in sensitive areas such as near a hospital. 5. To prevent dust pollution during dry periods, the Contractor shall carry out regular watering of earth and gravel haul roads and shall cover material haulage trucks with tarpaulins to prevent spillage. Prohibitions 6. The following activities are prohibited on or near the project site:  Cutting of trees for any reason outside the approved construction area;  Hunting, fishing, wildlife capture, or plant collection;  Use of unapproved toxic materials, including lead-based paints, asbestos, etc.  Disturbance to anything with architectural or historical value;  Building of fires;  Use of firearms (except authorized security guards). II. Transport 7. The Contractor shall use selected routes to the project site, as agreed with the Engineer, and appropriately sized vehicles suitable to the class of road, and shall restrict loads to prevent damage to roads and bridges used for transportation purposes. The Contractor shall be held responsible for any damage caused to the roads and bridges due to the transportation of excessive loads, and shall be required to repair such damage to the approval of the Engineer. 60 8. The Contractor shall not use any vehicles, either on or off road with grossly excessive, exhaust or noise emissions. In any built up areas, noise mufflers shall be installed and maintained in good condition on all motorized equipment under the control of the Contractor. 9. Adequate traffic control measures shall be maintained by the Contractor throughout the duration of the Contract and such measures shall be subject to prior approval of the Engineer. III. Workforce 10. The Contractor should whenever possible locally recruit the majority of the workforce and shall provide appropriate training as necessary. 11. The Contractor shall install and maintain a temporary septic tank system for any residential labor camp and without causing pollution of nearby watercourses. 12. The Contractor shall establish a method and system for storing and disposing of all solid wastes generated by the labor camp and/or base camp. 13. The Contractor shall not allow the use of fuel wood for cooking or heating in any labor camp or base camp and provide alternate facilities using other fuels. 14. The Contractor shall ensure that site offices, depots, asphalt plants and workshops are located in appropriate areas as approved by the Engineer and not within 500 meters of existing residential settlements and not within 1,000 meters for asphalt plants. 15. The Contractor shall ensure that site offices, depots and particularly storage areas for diesel fuel and bitumen and asphalt plants are not located within 500 meters of watercourses, and are operated so that no pollutants enter watercourses, either overland or through groundwater seepage, especially during periods of rain. This will require lubricants to be recycled and a ditch to be constructed around the area with an approved settling pond/oil trap at the outlet. 16. The Contractor shall not use fuel wood as a means of heating during the processing or preparation of any materials forming part of the Works. 17. The Contractor shall conduct safety training for construction workers prior to beginning work. Material Safety Data Sheets should be posted for each chemical present on the worksite. 18. The Contractor shall provide personal protective equipment (PPE) and clothing (goggles, gloves, respirators, dust masks, hard hats, steel-toed and –shanked boots, etc.) for construction and pesticide handling work. Use of PPE should be enforced. IV. Distribution of Agricultural Inputs 19. The treated seed should be well labeled with such information as the variety name, whether it is hybrid or open pollinated maturity period and lot number to help farmers understand what they are receiving. Detailed information about treated seeds should be included into capacity-building activities. 61 20. The seed distribution should be targeted in coordination with the efforts of other donors and NGOs to ensure farmers do not receive multiple packs from different donors. V. Quarries and Borrow Pits 21. Operations of a new borrow area, on land, in a river, or in an existing area, shall be subject to prior approval of the Engineer, and the operation shall cease if so instructed by the Engineer. Borrow pits shall be prohibited where they might interfere with the natural or designed drainage patterns. River locations shall be prohibited if they might undermine or damage the river banks, or carry too much fine material downstream. 22. The Contractor shall ensure that all borrow pits used are left in a trim and tidy condition with stable side slopes, and are drained ensuring that no stagnant water bodies are created which could breed mosquitoes. 23. Rock or gravel taken from a river shall be far enough removed to limit the depth of material removed to one-tenth of the width of the river at any one location, and not to disrupt the river flow, or damage or undermine the river banks. 24. The location of crushing plants shall be subject to the approval of the Engineer, and not be close to environmentally sensitive areas or to existing residential settlements, and shall be operated with approved fitted dust control devices. VI. Earthworks 25. Earthworks shall be properly controlled, especially during the rainy season. 26. The Contractor shall maintain stable cut and fill slopes at all times and cause the least possible disturbance to areas outside the prescribed limits of the work. 27. The Contractor shall complete cut and fill operations to final cross-sections at any one location as soon as possible and preferably in one continuous operation to avoid partially completed earthworks, especially during the rainy season. 28. In order to protect any cut or fill slopes from erosion, in accordance with the drawings, cut off drains and toe-drains shall be provided at the top and bottom of slopes and be planted with grass or other plant cover. Cut off drains should be provided above high cuts to minimize water runoff and slope erosion. 29. Any excavated cut or unsuitable material shall be disposed of in designated tipping areas as agreed to by the Engineer. 30. Tips should not be located where they can cause future slides, interfere with agricultural land or any other properties, or cause soil from the dump to be washed into any watercourse. Drains may need to be dug within and around the tips, as directed by the Engineer. 62 VII. Historical and Archeological Sites 31. If the Contractor discovers archeological sites, historical sites, remains and objects, including graveyards and/or individual graves during excavation or construction, the Contractor shall: i. Stop the construction activities in the area of the chance find. ii. Delineate the discovered site or area. iii. Secure the site to prevent any damage or loss of removable objects. In cases of removable antiquities or sensitive remains, a night guard shall be present until the responsible local authorities and the Ministry of Culture take over. iv. Notify the supervisory Engineer who in turn will notify the responsible local authorities and the Ministry of Culture, Youth and Sports immediately (less than 24 hours). v. Contact the responsible local authorities and the Ministry of Culture, Youth and Sports who would be in charge of protecting and preserving the site before deciding on the proper procedures to be carried out. This would require a preliminary evaluation of the findings to be performed by the archeologists of the relevant Ministry Culture, Youth and Sports (within 72 hours). The significance and importance of the findings should be assessed according to the various criteria relevant to cultural heritage, including the aesthetic, historic, scientific or research, social and economic values. vi. Ensure that decisions on how to handle the finding be taken by the responsible authorities and the Ministry of Culture, Youth and Sports. This could include changes in the layout (such as when the finding is an irremovable remain of cultural or archeological importance) conservation, preservation, restoration and salvage. vii. Implementation for the authority decision concerning the management of the finding shall be communicated in writing by the Ministry of Culture, Youth and Sports; and viii. Construction work will resume only after authorization is given by the responsible local authorities and the Ministry of Culture, Youth and Sports concerning the safeguard of the heritage. VIII. Disposal of Construction and Vehicle Waste 32. Debris generated due to the dismantling of the existing structures shall be suitably reused, to the extent feasible, in the proposed construction (e.g. as fill materials for embankments). The disposal of remaining debris shall be carried out only at sites identified and approved by the project engineer. The contractor should ensure that these sites: (i) are not located within designated forest areas; (ii) do not impact natural drainage courses; and (iii) do not impact endangered/rare flora. Under no circumstances shall the contractor dispose of any material in environmentally sensitive areas. 33. In the event any debris or silt from the sites is deposited on adjacent land, the Contractor shall immediately remove such, debris or silt and restore the affected area to its original state to the satisfaction of the Supervisor/Engineer. 34. Bentonite slurry or similar debris generated from pile driving or other construction activities shall be disposed of to avoid overflow into the surface water bodies or form mud puddles in the area. 63 35. All arrangements for transportation during construction including provision, maintenance, dismantling and clearing debris, where necessary, will be considered incidental to the work and should be planned and implemented by the contractor as approved and directed by the Engineer. 36. Vehicle/machinery and equipment operations, maintenance and refueling shall be carried out to avoid spillage of fuels and lubricants and ground contamination. An oil interceptor will be provided for wash down and refueling areas. Fuel storage shall be located in proper bounded areas. 37. All spills and collected petroleum products shall be disposed of in accordance with standard environmental procedures/guidelines. Fuel storage and refilling areas shall be located at least 300m from all cross drainage structures and important water bodies or as directed by the Engineer. 64 Attachment 7 Guidelines for Preparation of Environmental and Social Management Plans 1. The Environmental Assessment (EA) process involves the identification and development of measures aimed at eliminating, offsetting and/or reducing environmental and social impacts to levels that are acceptable during implementation and operation of the projects. As an integral part of EA, ESMP provides an essential link between the impacts predicted and mitigation measures specified within the EA and implementation and operation activities. The World Bank guidelines state that detailed ESMPs are essential elements for Category ‘A’ projects, but for many Category ‘B’ projects, a simple ESMP will suffice. While there are no standard formats for ESMPs, it is recognized that the format needs to fit the circumstances in which the ESMP is being developed and the requirements, which it is designed to meet. 2. Implementation Agencies prepare a standard ESMP in a format suitable for inclusion as technical specifications in the contract documents. ESMPs should be prepared after taking into account comments and clearance conditions from both the relevant agency providing environmental clearance and WBG. Given below are the important elements that constitute an ESMP. OP 4.09 Provisions in ESMP: 3. For procurement of pesticides or pesticide application equipment, should include in ESMP pesticide management issues and appropriate mitigation measures. This includes activities, which may (i) lead to substantially increased pesticide use and subsequent increase in health and environmental risk, (ii) maintain or expand present pest management practices that are unsustainable, not based on an IPM approach, and /or pose significant health or environmental risks. 4. The ESMP for such activities should include a list of pesticides authorized for procurement under the project: such a list is established prior to financing of pesticides and complies with selection criteria in OP 4.09, namely, the pesticides must: (i) have negligible adverse human health effects; (ii) be shown to be effective against the target species; (iii) have minimal effect on the non-target species and the natural environment. The methods, timing, and frequency of pesticide application are aimed to minimize damage to natural enemies; and (iv) take into account the need to prevent the development of resistance in pests. a. Description of Mitigation Measures 5. Feasible and cost-effective measures to minimize adverse impacts to acceptable levels should be specified with reference to each impact identified. Further, the Environmental Management Plan (EMP) should provide details on the conditions under which the mitigation measure should be implemented. The EMP should also distinguish between the type of solution proposed (structural and non-structural) and the phase in which it should become operable (design, construction and/or operation). Efforts should also be made to mainstream environmental and social aspects wherever possible. b. Monitoring program 65 6. In order to ensure that the proposed mitigation measures have the intended results and comply with national standards and World Bank requirements, an environmental performance monitoring program should be included in the EMP. The monitoring program should give details of the following:  Monitoring indicators to be measured for evaluating the performance of each mitigation measure (for example: national standards, engineering structures, extent of area replanted, etc.).  Monitoring mechanisms and methodologies  Monitoring frequency  Monitory locations c. Institutional arrangements 7. Institutions/parties responsible for implementing mitigation measures and for monitoring their performance should be clearly identified. Where necessary, mechanisms for institutional coordination should be identified, as often, monitoring tends to involve more than one institution. d. Implementing schedules 8. Timing, frequency and duration of mitigation measures with links to the overall implementation schedule of the project should be specified. e. Reporting procedures 9. Feedback mechanisms to inform the relevant parties on the progress and effectiveness of the mitigation measures and monitoring itself should be specified. Guidelines on the type of information wanted and the presentation of feedback information should also be highlighted. f. Cost estimates and sources of funds 10. Implementation of mitigation measures mentioned in the EMP will involve an initial investment cost as well as recurrent costs. The EMP should include cost estimates f into the activity design, bidding and contract documents to ensure that the contractors will comply with the mitigation measures. The costs for implementing the EMP will be included in the activity design, as well as in the bidding and contract documents. 66