The World Bank LIVELIHOODS RESILIENCE AND COMMERCIALIZATION PROJECT (LRCP) IN PASTORAL AND AGRO-PASTORAL AREAS (P164336) Project Information Document/ Integrated Safeguards Data Sheet (PID/ISDS) Concept Stage | Date Prepared/Updated: 07-Jun-2018 | Report No: PIDISDSC23863 Jun 07, 2018 Page 1 of 10 The World Bank LIVELIHOODS RESILIENCE AND COMMERCIALIZATION PROJECT (LRCP) IN PASTORAL AND AGRO-PASTORAL AREAS (P164336) BASIC INFORMATION A. Basic Project Data OPS TABLE Country Project ID Parent Project ID (if any) Project Name Ethiopia P164336 LIVELIHOODS RESILIENCE AND COMMERCIALIZATION PROJECT (LRCP) IN PASTORAL AND AGRO- PASTORAL AREAS (P164336) Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) AFRICA Jan 22, 2019 Mar 27, 2019 Agriculture Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Ministry of Finance and Ministry of Federal and Economic Cooperation Pastoral Development Affairs Proposed Development Objective(s) To Enhance Livelihood Resilience and Commercialization of the Production Systems among PAP Communities in Ethiopia. PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 600.00 Total Financing 500.00 of which IBRD/IDA 400.00 Financing Gap 100.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 400.00 Jun 07, 2018 Page 2 of 10 The World Bank LIVELIHOODS RESILIENCE AND COMMERCIALIZATION PROJECT (LRCP) IN PASTORAL AND AGRO-PASTORAL AREAS (P164336) IDA Credit 400.00 Non-World Bank Group Financing Other Sources 100.00 International Fund for Agriculture Development 100.00 Environmental Assessment Category Concept Review Decision B - Partial Assessment SAFEGUARDS_TABLE_OPS Have the Safeguards oversight and clearance functions been transferred to the Practice Manager? (Will not be disclosed) No Other Decision (as needed) B. Introduction and Context Country Context Ethiopia, with a current estimated population of 102.4 million1 (2016), has seen rapid economic growth over the past decade and is one of the fastest growing economies in the World. The IMF predicted the growth rate of Ethiopia to be 8.5 percent in 20182. The rapid economic growth over the past decade3 has not been able to generate adequate employment opportunities and Ethiopia needs to generate 1.7 million jobs4 every year to provide gainful employment to youth who are entering workforce. The arid and semi-arid low-lands, accounting for 60 percent of land area with 12 to 14 percent of population, comprising of pastoral and agro-pastoral (PAP) communities lag behind in most of the social and economic indicators and their livelihoods are highly vulnerable to a multitude of shocks, primarily droughts, which is being exacerbated by climate change. Sectoral and Institutional Context The pastoral and agro-pastoral system are complex systems that need to balance the dynamic interplay between 1 World Development Indicator, World Bank 2 IMF World Economic Outlook, April 2018 3 Average annual GDP growth was 10.1% between 2010 and 2016, World Development Indicators, World Bank 4 National Planning Commission, Government of Ethiopia. Jun 07, 2018 Page 3 of 10 The World Bank LIVELIHOODS RESILIENCE AND COMMERCIALIZATION PROJECT (LRCP) IN PASTORAL AND AGRO-PASTORAL AREAS (P164336) people, livestock and environment resource base. The complexity of these livelihood system is getting exacerbated, driven by multiple factors droughts, degradation of rangelands, active conflict and insecurity, constrained livestock mobility and access to key resources etc. All these changes are resulting in significant changes in PAP production and livelihood systems. The commercialization pull is resulting into a category of commercially oriented large-scale herd owners who are successfully managing the transition. The stress-push has resulted into a category of population who has moved-out of pastoralism either being forced out by successive droughts or opting out since the pastoral livelihood is no longer viable or being pulled-in towards other market opportunities. Despite the complexity and high stress environment, there are significant economic opportunities in the pastoral and agro-pastoral areas and a significant proportion of population is still engaged in pastoral and agro-pastoral systems while others are pursing alternate livelihood opportunities. Relationship to CPF The operation features in the Bank’s CPF for FY 17-21 under the Building Resilience and Inclusiveness Pillar. In addition, it strongly contributes to “Promoting Structural and Economic Transformation through Increased Productivity’ pillar. The project will contribute to CPF result framework targets of enhance resilience, increase in agricultural yield, job creation, natural resource management, climate co-benefits, improved service delivery, as well as Ethiopia’s targets of National Adaptation Plan and Second Growth and Transformation Plan (GTP-2). C. Proposed Development Objective(s) To Enhance Livelihood Resilience and Commercialization of the Production Systems among PAP Communities in Ethiopia. Key Results (From PCN) The key PDO level Indicators includes: 1. Number of direct project beneficiary (disaggregated by gender) 2. People provided with access to improved Economic and Social services (disaggregated by service type and gender) 3. Proportion (volume and value) of production sold by targeted beneficiaries for selected products 4. Range and agricultural land area (in HA) under improved natural resource management practices 5. Percentage increase in yield of selected crop and livestock commodities 6. Jobs created (disaggregated by gender) D. Concept Description A comprehensive and integrated approach, rather than discrete interventions, that addresses multiple dimensions of livelihood is needed to address the binding constraints described above. By understanding the needs of different beneficiary groups, pastoralists, agro-pastoralists, and households pursing or intending to pursue alternate livelihoods, and designing intervention packages to meet their specific needs, this project aims to support livelihood resilience and commercialization through the following project components. The project would invest in improving the overall Jun 07, 2018 Page 4 of 10 The World Bank LIVELIHOODS RESILIENCE AND COMMERCIALIZATION PROJECT (LRCP) IN PASTORAL AND AGRO-PASTORAL AREAS (P164336) enabling environment of rangeland management, pastoral risk management, and institutional development and capacity building which will contribute to increased resilience of the PAP communities and production systems. To improve livelihoods, the project would support improving productivity and commercialization of pastoral and agro- pastoral production system, small scale irrigation in lowland areas, and promoting livelihood diversification. To project would support improving access and utilization of basic social and economic services among the target communities through a decentralized Community Driven Development approach, which will be complimented by a strategic inter- community, and inter woreda investments with the purpose of improving prevention and preparedness against disasters. SAFEGUARDS A. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The project will be implemented in the Pastoral and agro-pastoral areas of Ethiopia. The geographical coverage of the project would include regions of Afar, Ethio-Somali, Oromia and SNNPP. B. Borrower’s Institutional Capacity for Safeguard Policies The borrower has implemented a number of Bank projects and have moderate institutional capacity for implementing safeguard policies.The project implementation arrangements will largely follow the existing mechanisms for the ongoing PCDP III with slight modifications to capture recent developments. While implementing various World Bank Financed infrastructure projects (PCDP I-PCDP III), the Borrower has gained experiences in preparing safeguards instruments (ESMF, RPF, ESS and ESMP documents) to identify and address potential environmental and social risks. The Ministry of Federal and Pastoral Development Affairs (MoFPDA) has implemented three successive phases of Pastoral Community Development Project (PCDP) under an Adaptable Programme Lending (APL) spanning 15 years, which has been jointly supported by the World Bank and IFAD. It is, therefore, proposed that this new LRCP will utilize the existing experience that has been built up with the ongoing PCDP III safeguard implementation arrangements. MoFPDA has the responsibility for overall coordination, monitoring and evaluation of the LRCP. Currently, there are safeguards specialists dedicated for PCDP III at federal and the four regional bureau levels. However, if Gambella and Benishagul regions will be benefited from the proposed project they are required to deploy safeguards experts before commencement of the project. Experiences revealed that proper implementation and documentation of safeguards related matters still remains a challenge that needs to be further strengthened, through ensuring adequate personnel and capacity at the ministerial and local levels, to ensure environmental and social safeguards compliance. C. Environmental and Social Safeguards Specialists on the Team Simon Sottsas, Social Safeguards Specialist Yacob Wondimkun Endaylalu, Environmental Safeguards Specialist D. Policies that might apply Jun 07, 2018 Page 5 of 10 The World Bank LIVELIHOODS RESILIENCE AND COMMERCIALIZATION PROJECT (LRCP) IN PASTORAL AND AGRO-PASTORAL AREAS (P164336) Safeguard Policies Triggered? Explanation (Optional) The Livelihoods Resilience and Commercialization Project (LRCP) is expected to finance the following activities: pasture development, supporting area enclosures, Prosopis and other invasive species control, water resource development along cattle corridors, soil and water conservation measures, afforestation activities, small dams, flood control, rain water harvesting, breed improvement, feed/forage improvement and management, animal health services, rain-fed agriculture, build demand-driven social and economic infrastructure; which may include Environmental Assessment OP/BP 4.01 Yes schools, health posts, veterinary posts, small water supply and irrigation, small feeder roads, catchment management improvements. Given that most of the aforementioned activities result in environmental and social risks, an environmental and social assessment is necessary; ergo OP/BP 4.01 will be triggered. The assessment will be outlined in an Environmental and Social Framework to be updated prior to appraisal and key resullts and measures will be integrated into the project documents (PAD, PIM, ESMF, etc.). Further, site specific ESIA, ESMP and PMP will also be prepared, as required, during project prepation. The Project is being implemented by the Ministry of Performance Standards for Private Sector Agriculture. In case of any linkages to private sector No Activities OP/BP 4.03 via the commercialization component of the Project, these will be handled via OP 4.01. Pastoral areas cover some natural habitats which are protected by law, such as the Awash and Yangudi Rasa National Parks (Afar), Yabello Sanctuary (Borena) and the Babile Wildlife Sanctuary (Somali). However, LRCP is not expected to be operated within such areas or Natural Habitats OP/BP 4.04 Yes other areas that qualify as critical natural habitats under OP. 4.04 or include any sub-projects that have a bearing on protected areas. However, it will affect rangelands and pastures, for which OP/BP 4.04 will apply to protect even those non-critical natural habitats from any adverse impacts. OP/BP 4.36 is triggered to avoid any anticipated potential impacts that may affect the natural forests found in Gambella and Benishangul Gumuze regions. Forests OP/BP 4.36 Yes Besides, LRCP is expected to finance afforestation and other natural resources management (range land management, area enclosure, …) related activities for Jun 07, 2018 Page 6 of 10 The World Bank LIVELIHOODS RESILIENCE AND COMMERCIALIZATION PROJECT (LRCP) IN PASTORAL AND AGRO-PASTORAL AREAS (P164336) which OP/BP 4.36 would apply. Promotion of rain fed and/or irrigated farming where feasible and profitable is part of promoting sustainable livelihoods and may indirectly involve use of agrochemicals including fertilizers and pesticides for Pest Management OP 4.09 Yes both crop and livestock improvements. The ESMF will include guidelines and procedures for the preparation of specific PMPs, when is required, during the project implementation. There are few areas in the Ethiopian lowlands that may constitute physical cultural resources in the sense described in BP/OP. 4.11. Although the nature and scope of the LRCP sub-projects is not known now, they are unlikely to involve any major excavation work or inundation of areas with water, and are thus not likely to affect any physical cultural resources. Furthermore, subprojects will be carried out only in areas selected, through a broader consultative process that includes prior informed consent, by local citizens who would normally give great importance to safeguarding their cultural resources. Nonetheless, the policy is triggered, Physical Cultural Resources OP/BP 4.11 Yes predicated on the assumption that there could be “chance find�. No sub-project that might have negative impacts on cultural property will be funded without acceptable mitigation measures prepared prior to execution of any such sub-project. There are national procedures and guidelines for reporting chance finds to be followed, and a national entity for coordinating and facilitating the archiving, safekeeping and documentation of physical cultural resources. The Project would work closely with the national authority, should any chance find issues arise. The requirements and standard measures of a chance-find procedure will also be included in the ESMF. The Project triggers OP 4.10 as the vast majority of people in the project area meet the criteria for OP 4.10, with the project explicitly targeting lowlands in emerging regions. While the Project therefore will benefit specifically these areas, assessing culturally Indigenous Peoples OP/BP 4.10 Yes appropriate interventions as well as ensuring equal access to project benefits, a related Social Assessment shall be conducted and respective results integrated into the Project design. The SA will contain an explicit Social Development Plan and the Project will integrate the required measures into the PAD as well as Jun 07, 2018 Page 7 of 10 The World Bank LIVELIHOODS RESILIENCE AND COMMERCIALIZATION PROJECT (LRCP) IN PASTORAL AND AGRO-PASTORAL AREAS (P164336) allocating ressources to ensure its implementation. Consequently it will also be addressed in the PIM and the ESMG. LRCP interventions may involve acquisition of land and /or restriction of access to communal natural resources. Therefore, an RPF has to be prepared to ensure that appropriate measures are in place to Involuntary Resettlement OP/BP 4.12 Yes address any issues which might arise from potential land acquisition and or restriction of access to communal natural resources under the Project. This RPF shall include appropriate tools to address potential impacts by a large number of sub-projects. LRCP is not expected to finance any investments aimed at rehabilitating or constructing large dams. Although there could possibly be construction of small dams under LRCP, particularly for small scale irrigation, they may not be large (more than 4.5 meters high) and therefore may not require special procedures that are normally applied for large dams to follow. This notwithstanding, the Project will trigger OP 4.37 (Safety of Dams). In cases of small dams Safety of Dams OP/BP 4.37 Yes construction (less than 4.5 meters), the Project will use the FAO ‘Manual on Small Earth Dams, A Guide to Siting, Design and Construction’. In addition, the guideline for small dam construction prepared by the MoA will be used to ensure safety of small dams. Generic dam safety measures designed by qualified engineers will be included in the design and implementation/rehabilitation of small dams; with respective requirements outlined in the ESMF. LRCP could extract very small amounts of water from any of the shared rivers or drainage systems. This Projects on International Waterways notwithstanding, the Project will, in accordance with Yes OP/BP 7.50 the requirements of the policy, send renewal notification of intended water use to the relevant riparian countries. The project is not expected to be implemented in any Projects in Disputed Areas OP/BP 7.60 No disputed areas. E. Safeguard Preparation Plan Tentative target date for preparing the Appraisal Stage PID/ISDS Jan 21, 2019 Jun 07, 2018 Page 8 of 10 The World Bank LIVELIHOODS RESILIENCE AND COMMERCIALIZATION PROJECT (LRCP) IN PASTORAL AND AGRO-PASTORAL AREAS (P164336) Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing should be specified in the Appraisal Stage PID/ISDS Before the project appraisal date CONTACT POINT World Bank Vikas Choudhary, Esayas Nigatu Gebremeskel Sr Agricultural Spec. Borrower/Client/Recipient Ministry of Finance and Economic Cooperation Fisseha Aberra Director faberrak@gmail.com Implementing Agencies Ministry of Federal and Pastoral Development Affairs Sewnet Chekol Chekol Director General sewnetchekol@yahoo.com 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 Task Team Leader(s): Vikas Choudhary, Esayas Nigatu Gebremeskel Jun 07, 2018 Page 9 of 10 The World Bank LIVELIHOODS RESILIENCE AND COMMERCIALIZATION PROJECT (LRCP) IN PASTORAL AND AGRO-PASTORAL AREAS (P164336) Approved By APPROVALTBL Safeguards Advisor: Practice Manager/Manager: Country Director: Jun 07, 2018 Page 10 of 10