The World Bank Malawi Drought Recovery and Resilience Project (P161392) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. For Official Use Only Combined Project Information Documents / Integrated Safeguards Datasheet (PID/ISDS) Appraisal Stage | Date Prepared/Updated: 17-Aug-2016 | Report No: PIDISDSA19823 Sep 23, 2016 Page 1 of 17 The World Bank Malawi Drought Recovery and Resilience Project (P161392) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) Malawi P161392 Malawi Drought Recovery and Resilience Project Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) AFRICA 19-Sep-2016 08-Nov-2016 Social, Urban, Rural and Resilience Global Practice Lending Instrument Borrower(s) Implementing Agency Investment Project Financing Government of Malawi, Ministry of Finance, Ministry of Finance, Economic Planning and Economic Planning and Development Development For Official Use Only Proposed Development Objective(s) The Project Development Objective is to support the Government of Malawi to meet the immediate food security and livelihoods restoration needs of the communities affected by drought and promote recovery and resilience in key affected sectors. The Project may also be able to provide immediate recovery support to GoM in the event of a future eligible crisis or emergency through a proposed Contingent Emergency Response Component. Components Improving Food Security and Sustainable Livelihoods Enhancing Drought-Resilience and Preparedness Contingent Emergency Response Component (CERC) Project Management OPS_TABLE_FCC The processing of this project is applying the policy requirements exceptions for situations of urgent need of assistance or capacity constraints that are outlined in OP 10.00, paragraph 12. Yes Financing (in USD Million) Financing Source Amount IDA Grant 90.00 Total Project Cost 90.00 Environmental Assessment Category - Sep 23, 2016 Page 2 of 17 The World Bank Malawi Drought Recovery and Resilience Project (P161392) Decision Track II-The review did authorize the preparation to continue B. Introduction and Context Country Context 1. The Republic of Malawi has predominantly an agrarian economy, with about 85 percent of its population living in rural areas and the majority engaged in smallholder rain-fed agriculture. With over two thirds of its total population living in poverty, it ranks as the 16th least developed country in the world1. Malawi is a landlocked country neighboring Tanzania, Zambia, and Mozambique. Approximately 20% of its total surface area (118,484 square kilometers) is covered by Lake Malawi. Agriculture accounts for 29 percent of Malawi’s GDP as well as 76 percent of export earnings (mainly from tobacco) in 20152. However, the high level of subsistence farming is one of the key factors behind high poverty rates. Rural poverty stood at 56 percent in 2004/05 and increased to 57 percent by For Official Use Only 2010/11, compared to approximately 25 percent in urban areas in 2010/113. Although poverty is more widespread in rural than urban areas, income inequality is significantly more pronounced in urban areas. 2. Real per capita Gross Domestic Product (GDP) has seen minimal improvements over the years. In 2015, the country’s GDP stood at US$ 494.4 from US$ 241.5 since independence in 19644. Growth outcomes have been characterized by episodic spells and recurring volatility with little significant dent on poverty outcomes. The country’s annual real GDP growth averaged 7 percent between 2006 and 2010, but slowed down to 1.9 percent in 2012 triggered by a sharp devaluation of the exchange rate, sporadic fuel shortages, and a rise in inflation by almost 35 percent. The pace of growth picked up afterwards reaching 5.7 percent in 2014 but with adverse weather conditions and macroeconomic instability, Malawi recorded a GDP growth rate of just 2.8 percent in 2015. Prospects for 2016 remain subdued with a projected growth of 2.6 percent with a second consecutive year of climatic shocks. Poverty headcount based on the 2004/05 and 2010/11 living standards measurement data shows that national poverty has remained stagnant at more than 50 percent and actually increased in rural areas, with 70 percent of the population being classified as poor in 20155. Current World Bank estimates using the new international poverty line of US$ 1.90 per day, indicate that 69.9 percent of the population is classified as being poor in 2015. 3. Malawi is highly exposed to natural hazards, such as floods and droughts. In the last 36 years alone, the country has experienced eight major droughts, affecting over 24 million people in total. The impact, frequency and spread of hydro-meteorological and climatic hazards in Malawi has intensified in the past four decades and is likely to worsen with climate change, compounded by other factors, such as population growth and environmental degradation. In addition to loss of life and the destruction of 1 2015 UNDP World Development Report 2 Ministry of Finance, Economic Planning and Development 3 Third Integrated Household Survey (IHS 3) 4 World Development Indicators, GDP per capita (Constant 2010 US$) 5 World Bank estimates using the international poverty line of US$ 1.90 per day. Sep 23, 2016 Page 3 of 17 The World Bank Malawi Drought Recovery and Resilience Project (P161392) public and private assets, such disasters can severely disrupt food production and exacerbate food security challenges. In Malawi, droughts and dry spells cause, on average, a one percent loss of Gross Domestic Product (GDP) annually6. Most drought episodes have occurred in El Niño years, during which the country experiences rainfall deficits. Situation of Urgent Need of Assistance 4. Malawi is currently experiencing consecutive disasters with devastating floods in the 2014/15 season and continuing dry spells leading to an agricultural drought in the 2015/16 season . The previous year’s flooding, followed by this year’s drought has severely affected food production and food security in the country. The start of the agricultural season was delayed by two to four weeks followed by erratic and below average rains in November and December 2015. Prolonged dry spells resulted in severe crop failure, particularly in the Southern Region and parts of the Central Region, including many of the same districts that were affected by the 2014/15 floods. The recently released agricultural crop estimates show that overall food production has declined by 12.4 percent from the 2014/15 season, which was already down by about 30 percent compared to the 2013/14 season. For Official Use Only 5. The compounding effect of two consecutive poor agricultural seasons is further exacerbating the suffering of the drought affected population, and Malawi is likely to experience its worst food shock in a decade in the upcoming lean period from January to March 2017. Over 2.8 million individuals across 25 districts (out of 28 districts) were receiving food assistance until April and with the further decline in food production, more individuals are expected to require further food assistance in the coming months. The annual food security assessment conducted in May 2016 by the Malawi Vulnerability Assessment Committee (MVAC) estimates that a minimum of 6.5 million people (or 39 percent of the country’s projected population of 16.8 million) will not be able to meet their annual foods requirements during the 2016/2017 consumption period. MVAC further assesses that, in order to ensure that the affected people survive up to the next harvest period without disrupting their socio- economic livelihoods, the total food assistance that is required is estimated at the equivalent of 493,000 metric tons of maize. 6. The impacts of the drought and resulting food security crisis has overwhelmed national response capacities in Malawi. As a result, the President of Malawi declared a “State of National Disaster� with effect from April 13, 2016. The declaration covered 24 of Malawi’s 28 districts, including all districts in the Southern and Central Regions and two districts in the Northern Region7. He also made an appeal for humanitarian relief assistance from the international community, United Nations (UN), Non-Governmental Organizations (NGOs) and the private sector to help alleviate the suffering of the people affected by the food shortage. 7. In response to the request from the GoM (dated July 11, 2016), the proposed Emergency Recovery Loan (ERL) will aim to address a subset of priority interventions outlined in the Food Insecurity Response Plan (FIRP) and Post Disaster Needs Assessment (PDNA) Drought Recovery 6 GFDRR Country Profile: Malawi 7 Balaka, Blantyre, Chikhwawa, Chiradzulu, Dedza, Dowa, Kasungu, Lilongwe, Machinga, Mangochi, Mchinji, Mulanje, Mwanza, Mzimba, Neno, Nkhotakota, Nsanje, Ntcheu, Ntchisi, Phalombe, Rumphi, Salima, Thyolo, and Zomba. Sep 23, 2016 Page 4 of 17 The World Bank Malawi Drought Recovery and Resilience Project (P161392) Strategy. Given the scale and magnitude of impacts to the poor and overall economy, the proposed Malawi Drought Recovery and Resilience Project (MDRRP) project will balance: a) addressing immediate pressing food security needs; and (b) supporting medium-term drought recovery and resilience building for sectors that have been most impacted and prioritized for livelihood recovery (agriculture, irrigation, water resources and water supply, and disaster risk reduction). 8. The proposed MDRRP is being prepared under condensed emergency procedures (OP 10, Para 12), and deferring safeguards requirements. As such, a Safeguards Action Plan (SAP) has been prepared and included as part of the Project Appraisal Document (PAD). Sectoral and Institutional Context 9. Breaking the cycle of food insecurity: The GoM is currently developing a plan for “Breaking the Cycles of Food Insecurity in Malawi for Greater Development Impacts�, under the leadership of the Department of Disaster Management Affairs (DoDMA), which will serve as the National Resilience Strategy for the country. The overall objective of the strategy is to make Malawi more resilient to For Official Use Only disasters and break the cycle of food insecurity. As demonstrated by the consecutive disasters in 2014/15 (flood) 2015/16 (drought); a multi-phase, multi-sector programmatic approach is required to ensure that not only immediate recovery needs are met, but that underlying vulnerabilities are addressed to break the cycle of recurrent disasters that are becoming more frequent and severe. In the context of the ongoing emergency, the FIRP addresses the humanitarian needs generated by the crisis and sets the basis for recovery, while the PDNA focuses more on those medium to long-term measures that will ensure full recovery of the affected population. These have both been developed in strategic alignment with the National Resilience Strategy, as well as with existing sector development programs. Such policy harmonization ensures that there are no critical overlaps between plans and that no gaps remain uncovered, maximizes smoother transition and sequencing, and builds synergies for medium to long term resilience. 10. The PDNA Drought Recovery Strategy formulated by the GoM adopts a risk-reduction and people-centered approach with the vision of strengthening the resilience of the population and promoting sustainable development. It focuses on six key strategic pillars, including: (i) increase productivity in agriculture and irrigation development; (ii) improve food security, nutrition and health services; (iii) enhance people’s capacity to withstand risk and build resilience; (iv) strengthen water resources management and enhance water supply; (v) strengthen Disaster Risk Reduction (DRR) and drought resilience; and (vi) integrate gender concerns into all recovery interventions. The GoM and its partners recognize that the recovery has to be a multi-sectorial effort. Therefore, interventions will be planned and implemented simultaneously in all those sectors affected by the drought according to the level of impact of the event. 11. Recovery Strategy and Cross Cutting Principles for the Proposed Project: Accordingly the proposed Malawi Drought Recovery and Resilience Project (MDRRP) will be guided by the following principles: (i) a simultaneous cross-sectoral approach through a multi-stakeholder engagement, (ii) phasing strategic continuity and gradual transition across the immediate and medium-term phases of recovery, (ii) community participation and targeting the most vulnerable, (iii) building back better and smarter, (iv) focus on resilience through strategic alignment of ongoing development policies, (v) Sep 23, 2016 Page 5 of 17 The World Bank Malawi Drought Recovery and Resilience Project (P161392) integration of gender sensitive design in all engagements, and (vi) a focus on improving the capacity of government institutions for improved resilience. Institutional Context of Sectors Relevant to the MDRRP 12. Food security: The food security agenda of Malawi is driven by a plan currently under development for “Breaking the Cycles of Food Insecurity in Malawi for Greater Development Impact�, which highlights the importance of disaster resilience and sustainable economic development. The Government’s Strategic Grain Reserve (SGR), established in 1981, has played a critical role in coping with food (maize) shortages and emergencies. Additionally, the National Food Reserve Agency (NFRA) was established in 1999 to manage the SGR and promote marketing. The NFRA is responsible for maintaining the SGR and stabilizing the grain market; overseeing importation and exportation, supervised and validated by a Board of Trustees and SGR Management Committee. For SGR replenishment and restocking, the NFRA and the Ministry of Agriculture, Irrigation and Water Development (MoAIWD) have historically worked closely with UN agencies and Development Partners, such as the World Food Programme (WFP) and the UKs Department for International Development (DFID), and bilateral donors to procure and distribute food commodities. For Official Use Only 13. Agriculture: The MoAIWD is also responsible for policy development and strategic management of the agriculture sector, and has recently developed the National Agricultural Policy (NAP) to harmonize sector policies. The NAP is fully aligned with the existing core policies, including the Vision 2020 Framework, the second Malawi Growth and Development Strategy (MGDS II), and the Agriculture Sector Wide Approach (ASWAp). The long-term agricultural development strategies are to support a high level of agricultural productivity, diversification and commercialization to ensure equity, household food security, income growth, employment, and sustainable utilization of natural resources. 14. Irrigation: Increased investment in irrigation is consistent with Malawi’s higher level development plans and aspirations articulated in the Vision 2020, MGDS II, and ASWAp. The irrigation sector core strategies are now guided by the three priority areas from the Irrigation Master Plan and Investment Framework as well as the (Draft) National Irrigation Policy. The priorities are to increase irrigation coverage through development of new schemes as well as rehabilitation and modernization of old schemes, and to build capacity for technicians/staff and farmers. The MoAIWD is responsible for oversight at ministry level, and the Department of Irrigation are the technical lead and oversee implementation and management of activities. 15. Water Resources and Water Supply: The government developed a National Water Resources Investment Strategy (NWRIS, 2011) and an Irrigation Master Plan (2015) to guide investments in water resources to meet a range of water needs for productive purposes. Under the vision “Water and Sanitation for All�, the sector goal is to ensure sustainable provision of adequate quantity and quality of water and adequate sanitation services. MoAIWD takes roles in facilitating management of water resources as well as formulating related policies. Water supply in urban and small towns is managed by five statutory water boards8 and rural water supply is managed by Water User Associations (WUAs) with technical backstopping by District Water Officers and the Department of Water and Sanitation. 8 Lilongwe, Blantyre, Northern, Central, and Southern Water Boards Sep 23, 2016 Page 6 of 17 The World Bank Malawi Drought Recovery and Resilience Project (P161392) 16. Disaster Risk Management: DoDMA in the Office of the Vice President, has the legal mandate to coordinate and direct Disaster Risk Management (DRM) programmes in the country. The National Disaster Risk Management (NDRM) Policy was approved in 2015 with the overall goal to sustainably reduce disaster losses in lives and in the social, economic and environmental assets of communities and of the nation. The policy covers Disaster Risk Reduction (DRR), preparedness, mitigation, response and recovery. In light of the recurring disasters affecting country, the GoM is currently developing a National Resilience Strategy, which articulates three main objectives that will guide the DRM activities in Malawi: (i) promote irrigation for food security and nutrition and drive export; (ii) reduce the effects of floods and occurrence of drought; and (iii) enhance effective Early Warning Systems (EWSs). C. Proposed Development Objective(s) The Project Development Objective is to “support the GoM to meet the immediate food security and livelihoods restoration needs of the communities affected by drought and promote recovery and resilience in key affected sectors�. The Project may also be able to provide immediate recovery support to GoM in the event of a future eligible crisis or For Official Use Only emergency through a proposed Contingent Emergency Response Component. D. Project Description Component 1: Improving Food Security and Livelihoods Component 2: Enhancing Drought-Resilience and Preparedness Component 3: Contingent Emergency Response Component (CERC) Component 4: Program Management E. Implementation Institutional and Implementation Arrangements 17. Use of Existing MFERP Institutional Structures: The proposed Project will benefit from the expertise and the existing implementation arrangements developed for the ongoing (MFERP), which also supports a multi-sectoral disaster recovery. The overall implementation arrangements proposed and agreed with GoM for the MDRRP are summarized below, and detailed and illustrated in Annex-2. The GoM and the PIU will develop and maintain a detailed Project Implementation Manual (PIM) to specify the roles and responsibilities of various segments and tiers of the project’s implementation apparatus as well lay out technical and operational decision making processes. 18. Project Steering Committee (PSC): The MDRRP will use a PSC as its apex decision-making body, utilizing and building upon the existing PSC in place for the MFERP. The PSC, chaired by the MoFEPD, would be composed of representatives from the MoFEPD, Ministry of Agriculture, Irrigation and Water Development (MoAIWD), Ministry of Local Government and Rural Development (MoLGRD) and DoDMA. The Chief Executive Officers of NFRA, and relevant Water Boards would also be represented on the PSC. This committee would provide oversight for project implementation as well as central policy guidance as required on a periodic basis. Sep 23, 2016 Page 7 of 17 The World Bank Malawi Drought Recovery and Resilience Project (P161392) 19. Project Technical Committee (PTC): The Ministry of Agriculture, Irrigation and Water Development (MoAIWD) would also act as the lead technical agency for implementation. Further in order to ensure efficient and effective technical decision making and support to the Project, a dedicated MDRRP PTC will be established to provide technical guidance at both strategic and operational levels, as well as help resolve technical issues that are brought to its attention. The PTC will comprise of technical specialists and Directors/Department Heads from each implementing sector or agency. The PTC will also serve as the primary mechanism for ensuring the implementation of the inter-ministerial and inter- departmental coordination modalities. It will also manage the respective roles and responsibilities set out for the various implementing entities and departments as further specified in the PIM. The Project Technical Committee will report to the Project Steering Committee. 20. Project Implementation Unit (PIU) for MDRRP: The existing PIU for the Bank-funded MFERP will be scaled up and its capacity augmented to take on the additional responsibility of providing implementation oversight for the MDRRP. However, there will be a clear bifurcation of decision making, implementation, fiduciary and safeguards management functions, roles and responsibilities of existing and additional PIU staff between MFERP and MDRRP. This could take the shape of a modified PIU For Official Use Only structure with two Project Implementation Cells (PICs), one for the existing MFERP and the other for the new MDRRP. A Deputy Coordinator will be appointed to support the MFERP Project Coordinator with implementation of MDRRP. The enhanced PIU will focus on quality and process oversight, financial management, centralized procurement, inter-ministerial reporting arrangements, contract management, monitoring and evaluation and ensuring social and environmental safeguards compliance, while benefiting of the implementation experience of the MFERP. 21. PIU capacity enhancement: To achieve the above, the existing PIU will strengthen its capacity to oversee the implementation of the components and sub-components introduced under the MDRRP, with particular emphasis on building technical capacity for those sectors not previously covered under MFERP (related to agriculture, livestock, fisheries and water supply). Similarly, the PIU will need to enhance its capacity to extent outreach to the 24 drought affected districts, of which 9 are additional to what was previously covered under MFERP. The PIU will recruit additional specialists and establish an additional PIU regional structure to support implementation in Central districts. Additional administration assistants will also be recruited to support the financial and procurement aspects of the project and for smooth conduct of operations at the regional office. More details on the proposed capacity enhancements of the PIU are provided in Annex-2, to additionally manage MDRRP implementation as well as on how functional bifurcation will be maintained across the two projects. These will be reviewed and finalized upon project negotiations, with room for adjustments and flexibility during project implementation. . F. Project location and Salient physical characteristics relevant to the safeguard analysis (if known) The project will be implemented across 24 districts in Malawi; all 9 districts in the Central region, all 13 districts in the Southern Region, and 2 districts in the Northern Region (Rumphi and Mzimba). These districts have experienced alternating periods of flooding and drought over the recent years, and these events have clearly overwhelmed national disaster response Sep 23, 2016 Page 8 of 17 The World Bank Malawi Drought Recovery and Resilience Project (P161392) capacities in Malawi. The country’s existing developmental deficits are being further widened, and poverty reduction and growth interventions are facing serious disruptions. The recent drought has hit some of the poorest parts of Southern and Central Malawi. The cumulative impact of drought losses is estimated at around 5.6 percent of Malawi’s GDP. The proposed project therefore aims to provide reconstruction and recovery support to affected areas. It is expected that it will yield benefits and livelihood opportunities through provision of high priority reconstruction and rehabilitation of public infrastructure in the worst affected areas of the region in addition to enhancing government’s and the local community's capacity in dealing with future disasters. G. Environmental and Social Safeguards Specialists on the Team Helen Z. Shahriari,Shri Vasantt Kumar Jogoo,Jane A. N. Kibbassa,Boyenge Isasi Dieng SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) For Official Use Only The MDRRP will trigger this policy due to the involvement of civil works (rehabilitations, construction works) of public infrastructure in drought-affected areas. Civil works will possibly generate negative externalities such as: soil erosion and siltation, loss of trees, pollution to surface and ground water resources, soil erosion, dust emissions, solid and wastes. Components under the Project that would trigger this safeguard policy are community public works activities, rehabilitation and reconstruction of irrigation schemes, water intake infrastructures, head works of irrigation schemes, and fish hatcheries deep ponds. Environmental Assessment OP/BP 4.01 Yes The exact location, scope and scale of specific sub- project investments are not known at this stage. An ESMF will be prepared which will provide the criteria and procedures for screening sub-project investments and guide the preparation of site- specific environmental and social management plans. The ESMF will also assess the institutional capacity of the implementing agency and provide measures for capacity building along with an estimate of the budget needed for the implementation of the ESMF. The ESMF will also provide a list of activities that could be financed by the Project and screen out activities that correspond to Category A projects. Initial appraisal of the proposed activities under the Sep 23, 2016 Page 9 of 17 The World Bank Malawi Drought Recovery and Resilience Project (P161392) MDDRP has classified the project as Category B under OP 4.01. The MDDRP will not fund large-scale new infrastructure development projects (e.g. dams or power stations), but rather small to medium size rural infrastructural rehabilitation and reconstruction works in localized sites across the country (spread around 24 flood-affected districts). The justification for classification of category B is that most of the Project will focus on medium size rehabilitation and re-construction projects for irrigation schemes, water intake infrastructures, head works of irrigation schemes, and fish hatcheries deep ponds. The anticipated scale of potential adverse environmental or social impacts on human populations are site-specific, few if any of them are irreversible and in most cases, mitigation For Official Use Only measures could be designed to address the impacts. An environmental and social management plan and abbreviated resettlement action plan for sub- projects can be used to address the impacts. Because of the sensitivity of the Lower Shire area (being within the proximity of natural reserves and flood prone areas), it is possible that the ecological balance of the area could be affected, including Natural Habitats OP/BP 4.04 Yes natural reserves. Restoration of some livelihood activities, such as bee keeping and nature-based enterprises, may affect some protected wildlife reserves in rural communities. Forests OP/BP 4.36 No N/A The Project will support the rehabilitation of irrigation schemes and increase agricultural productivity. This involves investments in the agriculture sector that will enhance production and will likely increase the use of pesticides. However, the Project will not finance the procurement of pesticides. In cases where pesticides are used within Pest Management OP 4.09 Yes existing production systems, the Project will promote the use of integrated pest management and the safe use, storage, and disposal of agro- chemicals. Irrigation schemes may use pesticides to control pests on schemes. An Integrated Pest Management Plan (IPMP) will be prepared to provide guidance on the use of proper use of pesticides. Sep 23, 2016 Page 10 of 17 The World Bank Malawi Drought Recovery and Resilience Project (P161392) The Project may trigger this policy if contractors during rehabilitation and reconstruction of public infrastructure discover archeological sites, historical sites, remains and objects, including graveyards and/or individual graves. Physical Cultural Resources OP/BP 4.11 Yes The GoM will prepare Chance Find Procedures for Contractors to guide them in the proper management of physical cultural properties in case they are found. Indigenous Peoples OP/BP 4.10 No N/A Rehabilitation and construction of irrigation schemes, transmission pipelines, water intake infrastructures and fish hatchery deep ponds may require land for temporary or permanent use. The land acquired for this purpose may lead to loss of For Official Use Only assets for some households. Potential risks are: loss of access to land/assets and loss of income sources Involuntary Resettlement OP/BP 4.12 Yes or means of livelihoods whether or not affected people must move to another location. A RPF will be prepared to guide procedures on all sub-projects in incidences of land acquisitions, in cases of negative social impacts to people such as losses of assets, loss of income sources, loss of access to assets and income sources. The project will involve the rehabilitation of small dams or construction of small water retaining structures. The likely impacts to be generated by such activities will be of low significance and Safety of Dams OP/BP 4.37 Yes localized. However, to ensure quality and safety in the design and construction or rehabilitation of these structures, the policy on safety of dams has been triggered. Projects on International Waterways No N/A OP/BP 7.50 Projects in Disputed Areas OP/BP 7.60 No N/A Sep 23, 2016 Page 11 of 17 The World Bank Malawi Drought Recovery and Resilience Project (P161392) KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: Activities supported under MDRRP are expected to have a number of site-specific and minimal to moderate adverse environmental and social impacts. They aim to provide reconstruction and recovery support to affected areas in which livelihoods, public infrastructure and service delivery were impacted severely by the recent drought. The planned interventions are expected to yield benefits and livelihood opportunities through provision of high priority reconstruction and rehabilitation of public infrastructure in the worst affected areas of the region in addition to enhancing government’s and the local community's capacity in dealing with future disasters. Activities that are likely to generate large scale, significant and/or irreversible impacts will be excluded from the project. Based on a rapid assessment, and the fact that the proposed project is being prepared as an emergency operation triggered by a natural disaster event, an environmental category “B� has been assigned, and Operational Policies 4.01, 4.04, 4.09, 4.37, 4.11 and 4.12 have been triggered. For Official Use Only 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: Activities being planned under this project will have a very limited ecological footprint. The MDDRP will not fund large- scale new infrastructure development projects (e.g. dams or power stations), but rather small to medium size rural infrastructural rehabilitation and reconstruction works in localized sites across the country (spread around 24 flood- affected districts). Much of the Project will focus on medium size rehabilitation and re-construction projects for irrigation schemes, water intake infrastructures, head works of irrigation schemes, and fish hatcheries deep ponds. The anticipated scale of potential adverse environmental or social impacts on human populations are site-specific, few if any of them are irreversible and in most cases, mitigation measures could be designed to address the impacts. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. The MDDRP, in view of the fact that it is responding to an emergency situation, will not fund large-scale new infrastructure development projects that could potentially have long-term and irreversible impacts. Instead, the proposed project focuses on rather small to medium size rural rehabilitation and re-construction projects that can be easily managed at the local community level. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The exact location, scope and scale of specific sub-project investments are not known at this stage. A comprehensive ESMF will, therefore, be prepared in line with the Safeguards Action Plan and will be agreed during Project Negotiations. In line with Bank policy requirements, the ESMF will be prepared to guide environmental screening and management of all sub-projects. Separate and detailed environmental and social management plans will be prepared to cover specific sub-projects to be implemented. A separate Resettlement Policy Framework (RPF) will be prepared to guide resettlement planning and management of potential socio-economic risks from project activities relating to land acquisition, and physical and economic displacement. The ESMF will, therefore, clearly identify the following: (i) policy triggers for the project; (ii) the screening criteria to be used for sub-project identification and selection; (iii) list out comprehensively a range of likely environmental and social impacts for the various types of works/activities envisaged under the project and; (iv) applicable national/local policy and regulatory requirements; (v) the measures to mitigate the identified environmental risks/issues; (vi) assessment of the institutional capacity of the implementing Sep 23, 2016 Page 12 of 17 The World Bank Malawi Drought Recovery and Resilience Project (P161392) agency and measures for filling capacity gaps; and (vii) an estimate of the budget needed for the implementation of the EMF and related instruments. The ESMF will also provide a list of activities that cannot be financed, and screen out activities that correspond to Category A projects, or that may trigger additional safeguards policies. The Government of Malawi has, over the years, put in place a number of legislations, policies and instruments supporting environmental management and the environmental impact assessment process in the country. The National Environmental Policy and the Environment Management Act are the key instruments that cover environmental management in all the sectors of development. In addition to these instruments, there are sector specific policies and legislation that prescribe the conduct for managing the environment. Furthermore, the implementation of the MFERP has provided much-needed capacity to deal safeguard issues. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Environmental monitoring, evaluation and reporting on environmental and social management will be part of the For Official Use Only project implementation process and local authority reporting system. During construction, contractors will keep records of all activities done on the Project site, which will be submitted to the district council for consolidation. The District Lands Officers and District HIV/Aids Coordinators will be responsible for monitoring at the local level on a quarterly basis. Compliance to environmental and social screening will be generated from annual reports, evaluation reports and feedback meetings and implementation support missions. Specific to resettlement screening, the District Executive Committee, under the supervision of the District Commissioner, will carry out the screening. Monitoring, evaluation and reporting on resettlement issues will be part of a project implementation process and local authority reporting system. Compliance to resettlement screening will be generated from monthly reports, evaluation reports and feedback meetings and implementation support missions. Specific to safeguards, the Government has already used harmonized safeguards instruments and trained district-level environmental staff on screening. This set-up will be used for the MDRRP, and the ESMF and RPF will be adopted for this Project to monitor potential environmental and socially adverse impacts. The District Environmental Officer will be responsible for screening the proposed asset for land and resettlement issues and conduct environmental monitoring in line with the established procedures under the ESMF B. Disclosure Requirements OPS_EA_SG_DEFERRED_FCC_TABLE The review of this Safeguards has been Deferred. Comments Safeguards Deferred. In line with Environmental Assessment OP4.01, GoM will prepare an ESMF to guide the mainstreaming of environmental planning for the project. OPS_RA_SG _DEFERRED_FCC_TABLE The review of this Safeguards has been Deferred. Comments Borrower will, using the existing RPFs from the Malawi Flood Emergency Relief Project (MFERP), prepare a Sep 23, 2016 Page 13 of 17 The World Bank Malawi Drought Recovery and Resilience Project (P161392) Resettlement Policy Framework (RPF) to guide the preparation of site specific Resettlement Action Plans (RAP). OPS_PM_SG _DEFERRED_FCC_TABLE The review of this Safeguards has been Deferred. Comments An Integrated Pesticide Management Plan will promote the use of biological or environmentally friendly control of pests on irrigation schemes and reduce reliance on synthetic chemical pesticides C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OPS_EA_COMP_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes For Official Use Only If yes, then did the Regional Environment Unit or Practice Manager (PM) review and approve the EA report? NA Are the cost and the accountabilities for the EMP incorporated in the credit/loan? NA OPS_ NH_COM P_TA BLE OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or degradation of critical natural habitats? NA If the project would result in significant conversion or degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank? NA OPS_ PM_COM P_TA BLE OP 4.09 - Pest Management Does the EA adequately address the pest management issues? NA Is a separate PMP required? NA If yes, has the PMP been reviewed and approved by a safeguards specialist or PM? Are PMP requirements included in project design? If yes, does the project team include a Pest Management Specialist? NA OPS_ PCR_COM P_TA BLE OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? NA Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on cultural property? Sep 23, 2016 Page 14 of 17 The World Bank Malawi Drought Recovery and Resilience Project (P161392) NA OPS_IR_ COMP_TA BLE OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? No If yes, then did the Regional unit responsible for safeguards or Practice Manager review the plan? NA OPS_SD _COMP_ TABLE OP/BP 4.37 - Safety of Dams Have dam safety plans been prepared? No Have the TORs as well as composition for the independent Panel of Experts (POE) been reviewed and approved by the Bank? For Official Use Only No Has an Emergency Preparedness Plan (EPP) been prepared and arrangements been made for public awareness and training? No OPS_ PDI_ COMP_TA BLE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank's Infoshop? NA Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? NA Sep 23, 2016 Page 15 of 17 The World Bank Malawi Drought Recovery and Resilience Project (P161392) All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? No Have costs related to safeguard policy measures been included in the project cost? No Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? No Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? Yes For Official Use Only CONTACT POINT World Bank Ayaz Parvez Senior Disaster Risk Management Specialist Francis Samson Nkoka Disaster Risk Management Specialist Veronique Morin Senior Disaster Risk Management Specialist Borrower/Client/Recipient Government of Malawi, Ministry of Finance, Economic Planning and Development Implementing Agencies Ministry of Finance, Economic Planning and Development Madalo Nyambose Director of Debt and Aid Management mmnyambose@finance.gov.mw Sep 23, 2016 Page 16 of 17 The World Bank Malawi Drought Recovery and Resilience Project (P161392) FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Ayaz Parvez Task Team Leader(s): Francis Samson Nkoka Veronique Morin For Official Use Only Approved By Safeguards Advisor: Nathalie S. Munzberg 23-Sep-2016 Practice Manager/Manager: Maria Angelica Sotomayor Araujo 23-Sep-2016 Country Director: Preeti Arora 23-Sep-2016 Note to Task Teams: End of system generated content, document is editable from here. Sep 23, 2016 Page 17 of 17