The World Bank Enhancing Coastal and Ocean Resource Efficiency Project (P167804) Project Information Document/ Integrated Safeguards Data Sheet (PID/ISDS) Concept Stage | Date Prepared/Updated: 26-Sep-2018 | Report No: PIDISDSC25228 Jul 09, 2018 Page 1 of 10 The World Bank Enhancing Coastal and Ocean Resource Efficiency Project (P167804) BASIC INFORMATION A. Basic Project Data OPS TABLE Country Project ID Parent Project ID (if any) Project Name India P167804 Enhancing Coastal and Ocean Resource Efficiency Project (P167804) Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) SOUTH ASIA Feb 04, 2019 Jul 30, 2019 Environment & Natural Resources Financing Instrument Borrower(s) Implementing Agency Investment Project Financing Republic of India Society of Integrated Coastal Management Proposed Development Objective(s) To strengthen integrated coastal zone management in selected States and Union Territories PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 600.00 Total Financing 600.00 of which IBRD/IDA 300.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 300.00 Non-World Bank Group Financing Counterpart Funding 300.00 Borrower 300.00 Jul 09, 2018 Page 2 of 10 The World Bank Enhancing Coastal and Ocean Resource Efficiency Project (P167804) Environmental Assessment Category Concept Review Decision A - Full Assessment Track II-The review did authorize the preparation to continue B. Introduction and Context Country Context India’s focus on implementing economic reforms since the 1990s has helped it transition to a middle-income country, with aspirations of bettering the lives of all its citizens by becoming a high middle-income country by 2030. Already the third- largest economy in the world in purchasing parity terms, the country is expected to grow at over 7 percent per annum and striving to reach 8 percent per annum in the coming years. Strong political commitment has driven sustained growth and poverty reduction, with cooperative and competitive federalism that fosters friendly competition among states emerging as a prominent driver for the country’s overall development. In this context, aligning functions, finances, and functionaries among tiers of government remains an implementation challenge that can hinder reform progress, especially at the sub-national level. In few areas has this challenge emerged more prominently as in the India’s coastal region, in the context of GOI’s efforts to transform its handling of coastal development from top-down prescriptive regulations to a more efficient management approach. Addressing it can help unlock a more resource-efficient coastal/blue economy that not only drives growth but also brings about more sustainable coastal livelihoods. Sectoral and Institutional Context India’s coastal and ocean resources are rich in biodiversity and are crucial for growth, food production, and carbon sequestration, thus mitigating multiple risks of climate change. The country’s Blue Economy (BE) assets are currently estimated at USD 24 trillion, with an expected annual value addition of USD 2.5 trillion.1 India’s wide range of coastal ecosystems spans more than 1382 islands, 1093 beaches, and 7800 sq. km of corals, seagrass beds, saltmarshes and mangroves, turtle nesting grounds, and horseshoe crab habitats, among others. These highly productive yet fragile coastal ecosystems are under increasing pressure due to rapid urbanization and development needs. Competing demands from multiple users in the densely populated coastal regions result in sub-optimal development or missed development opportunities, while imposing multiple stresses on finite coastal systems and resources. Exacerbating the growing anthropogenic pressure, the Indian coast is particularly prone to the effects of climate change. Increasing temperatures threaten marine biodiversity and critical habitats, while growing storm variability and sea level rise increase the flooding and erosion risks facing coastal development and community livelihoods. The adverse impacts of climate change on the developmental prospects of the coastal regions are amplified by the persistence of pockets of widespread poverty and the dependence of a sizeable proportion of the population on climate-sensitive sectors for livelihood. Importantly, vulnerabilities in India differ among states, among regions, and among diverse groups of people within the same region due to substantial variations in topography, climate, ecosystems as well as diversity among social structures, economic conditions, and community needs. Even as anthropogenic pressures and resource overexploitation are increasing, the economic potential of India’s coastal and marine resources remains significantly underutilized in the absence of effective regulatory and management action. For example, strengthening coastal fisheries management can significantly improve the sector’s economic performance 1 National Coastal Mission Document, MoEFCC, December 2017 Jul 09, 2018 Page 3 of 10 The World Bank Enhancing Coastal and Ocean Resource Efficiency Project (P167804) while stabilizing or restoring stock health. Similarly, past unplanned development and pollution have rendered vast world- class beaches unusable, while the conservation and tourism development potential of India’s coastal islands remain untapped due, in part, to institutional overlaps, regulatory and planning gaps, information paucity, and lack of incentives to enable private investments. The country’s vast coastal and marine carbon sequestration potential is yet to be unlocked. More recently, the Government of India (GOI) efforts to optimize and ensure the sustainability of India’s coastal zone development have focused on transitioning from top-down regulations to a more science-informed coastal management approach. To this end, the proposed Enhancing Coastal and Ocean Resource Efficiency (ENCORE) Project seeks to assist the GOI in enhancing coastal resource efficiency and resilience, by building collective capacity (including communities and decentralized governance) for adopting and implementing integrated coastal management approaches. Recognizing ICZM as a continuous process rather than a one-off investment action, ENCORE will build upon and draw from the experience of the ongoing World Bank-supported Coastal Zone Management Project (CZMP), including in terms of pursuing the linkages between coastal conservation, climate resilience, and poverty reduction. Relationship to CPF The proposed operation will advance GOI’s achievement of SDGs 11, 13, and 14 while directly contributing to the World Bank Group’s (WBG) twin goals of ending extreme poverty and boosting shared prosperity sustainably. The proposed operation is consistent with the World Bank Group India Country Partnership Framework (CPF) for 2018-2022, and is aligned with achieving the objectives of its focus areas on: (i) promoting resource efficient growth; (ii) enhancing competitiveness and creating jobs; and (iii) investing in human capital. With reference to Focus Area 1 (Resources and Resource Efficiency), the project will help unlock new economic potential—for example, through supporting the goal of establishing 200 Blue Flag Beaches, which are independently certified as eco-friendly and enable sustainable coastal tourism—while empowering State and local governments to pursue a more effective and climate-resilient development in coastal urban and peri-urban areas (CPF Objectives 1.2 and 1.5). By establishing a predictable framework for coastal development, including releasing coastal land for accelerated growth through effective solid waste management and land reclamation, the proposed investment similarly contributes to Objectives 1.2 and 2.3 and aligns with GOI’s priorities. ENCORE is directly supporting the implementation of the newly-amended Coastal Regulation Zone Notification (CRZ) and is further aligned with GOI’s high-level priorities and targets expressed in the National Action Plan on Climate Change [NAPCC], Nationally Determined Commitments under the COP21 Paris Agreement, National Environment Policy (NEP) 2006, and the Environmental Protection Act (1980). The project will inform the implementation of GOI’s National Coastal Mission (NCM) while contributing to the achievement of SDGs 11, 13, and 14. The NCM aims to transform India’s coastal marine sector into the world’s best managed productive ecosystem, in a phased manner, recognizing that maintaining the ecological services of the marine and coastal ecosystems of India will play a critical role in sustaining national economic growth, food security, poverty reduction, livelihoods, and overall well-being. C. Proposed Development Objective(s) To strengthen integrated coastal zone management in selected States and Union Territories Key Results (From PCN) i. Coastal Governance Efficiency Index (number). ii. Number of States utilizing their coastal “Hazard Line� and designated Ecologically Sensitive Areas (ESAs) to direct development away from vulnerable areas. Jul 09, 2018 Page 4 of 10 The World Bank Enhancing Coastal and Ocean Resource Efficiency Project (P167804) iii. Mobilizing Finance for Development Index (number). iv. Coastal Zone Protection Index (number). and v. Share of targeted beneficiaries rating project interventions “Satisfied� or above (disaggregated by gender). D. Concept Description Recognizing ICZM as a continuous process, the ENCORE builds upon the on-going CZMP project to support State and National institutions for resilient and productive coastal development. To this end, the proposed new operation will build on the 2010 ICZM project’s challenges and lessons learned by focusing on (i) further streamlining the institutional mandates, resource flows, and functionalities among government tiers; (ii) balancing financial viability and long-term resource sustainability to enable private finance; and (iii) linking science to management and decison making, and strengtheing the National Center for Sustainable Coastal Management (NCSCM) in order to make it stronger, financially sustainable, and link it to other global centers – in line with India’s aspiration to become a lighthouse of knowledge. Respectively, the ENCORE strategy will utilize an approach centered on Institutions, Incentives, and Information—or I-3— to strengthen State/UTs capacity to handle the complexities of addressing simultaneously their coastal development, conservation, and climate resilience goals while balancing national and state interest in coastal management. Project interventions are envisioned along three pillars as follows:  Pillar 1: Institutional and Management Capacity for ICZM, seeking to strengthen institutional capacity for resource- efficient and climate-resilient collaborative growth At the State level, ENCORE will help states build ICZM institutional and planning capacity while meeting priority coastal development goals. This can include support the States/UTs to establish and strengthen their State Coastal Zone Management Authorities (SCZMAs) and their technical secretariats, as well as to develop their first or second generation ICZMPs for areas of national importance that are exposed to development risks and the effects of climate change. At the union level, the project will support expanding capacity beyond regulatory oversight and enforcement to more actively engage in setting national coastal development goals and policies, while ensuring consistency among the States/UTs’ ICZMPs and implementing actions.  Pillar 2: Climate Smart Growth of the Indian Coast, providing financial support for high-impact State/UT investment activities that are aligned with the objectives of their respective ICZMPs and meet the statutory national coastal zone management standards. In addition to pursuing a closer alignment of public expenditures with the respective State/UT’s ICZM objectives, the project will further focus on unlocking private finance for pollution abatement and climate-resilient interventions, in particular, and, more broadly, for more effective utilization of coastal resources to support growth through (i) opening the potential of the coastal land for accelerated growth [strategic planning and zoning], (ii) reclamation of polluted waterbodies and coastal fringes [for services and tourism], (iii) unlocking the biodiversity resources/potentials for ecosystem-based climate adaptation, pollution abatement, and livelihood improvements.  Pillar 3: Information and science for evidence-based decision-making, facilitating improved information access and linking coastal science advances to State and local decision-making under India’s Sustainable Digital Coast. This will also include coastal health and education interventions to build local capacities and tap the best available repository of local ICZM knowledge. SAFEGUARDS A. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The ENCORE project aims to strengthen integrated coastal zone management across India’s 13 coastal States/UTs. The general area for project interventions is identified as the east, west and south coasts of peninsular India and its two island Jul 09, 2018 Page 5 of 10 The World Bank Enhancing Coastal and Ocean Resource Efficiency Project (P167804) territories. To provide for better cross-State learning and coordination, a two stage programmatic approach is considered. Identification and sequencing of states will done during preparation. Exact locations of the specific project investment activities are not known at this stage. The Project investments are expected to enhance and support coastal resources, minimize coastal pollution and improve the livelihoods of coastal communities. The project activities are not expected to result in long term or permanent adverse impacts on the environment. It is envisaged that the project would lead to positive impacts, including marine and coastal conservation, pollution prevention and effective utilization of coastal resources, and promotion of sustainable coastal livelihoods. In addition, the project is expected to provide a scientific basis and an effective coastal management framework (including institutional capacity) for resource efficient and integrated coastal management. The proposed project mandate subsumes safeguards management as an integral part of the project objectives and implementation. The expected minor to moderate adverse environmental and social impacts and/or risks of temporary nature could be due to: (i) activities related to civil works which have potential to cause environmental pollution, and pose risks to health and safety, (ii) nature of coastal conservation / protection interventions which could have local impacts if the overall coastal environmental dynamics are not considered, especially in the context of expected interventions under Pillar 3; (iii) occupational and public safety risks for workers and the communities. Similalry, with project investments expected to spread along India’s entire coast, including island territories, it is likely that some locations may have presence of indigenous population. Project activities considered at the conceptual level relate to improving coastal environment, and leverage the concepts of resource efficiency, the E & S risks would be low to moderate. However, since investments are yet to firmed up, Safeguards Category at concept stage is considered as “A� and an ESMF will be prepared by the borrower. Preparation includes Category review based on risks B. Borrower’s Institutional Capacity for Safeguard Policies The project aims to enhance the capacity of National / State / Local level collaborative platforms building on models and institutions developed through India: Integrated Coastal Zone Management Project (ICZMP). Under the on-going ICZMP, institutional structure to support integrated coastal zone management has been established at both the National level and the three ICZMP pilot States (Gujarat, Odisha, and West Bengal). MoEFCC is the nodal agency for coordinating at National level the ongoing India CZM Project as well as for the new ENCORE Program. At the national level, the National Coastal Zone Management Authority (NCZMA) has been created and is functional, with the Society of Integrated Coastal Management (SICOM) established under MoEFCC acting as its technical Secretariat with scientific and expert support from the National Center for Sustainable Coastal Management (NCSCM). Concurrently, SICOM has served as National- level Project Management Unit for ICZMP and is expected to continue with similar role under the new ENCORE program. At the sub-national level, State Coastal Zone Management Authorities (SCZMA) have been set up under each State/UT Department of Environment and Forests, with their secretariats similarly serving as State-level Project Management Units (SPMUs) and have various State Departments and Local Bodies as sub-project Implementing agencies. The SPMUs would be responsible for monitoring the projects to ensure environmental safeguards following the provisions in ESMF. Experience from previous projects shows that safeguard issues are limited and manageable, it also indicates that potential safeguards issues can be expected to emerge at the local/activity level in which the capacity limitations to address them can be the greatest. This may have an implication on the management of safeguard policies and associated risks of weak implementation of management plans. Building a strong, multidisciplinary project team, at national and state levels right from the preparation stage of the project is important. The SPMUs will further designate dedicated activities and budget for training and capacity building at the state and local levels for safeguards management,including Jul 09, 2018 Page 6 of 10 The World Bank Enhancing Coastal and Ocean Resource Efficiency Project (P167804) monitoring EMP implementation, conducting environmental audits and evaluation studies. To this end, the ENCORE SPMUs will be replicating the models developed by the three ICZMP pilot States, which are already demonstrating improved capacities for Environmental Management C. Environmental and Social Safeguards Specialists on the Team Parthapriya Ghosh, Social Specialist Deepa Balakrishnan, Environmental Specialist D. Policies that might apply Safeguard Policies Triggered? Explanation (Optional) Project activities focus on (i) State/UTs Institutional Development for ICZM, (ii) Information and science for evidence-based decision-making, and (iii) Climate Smart Growth of the Indian Coast [focusing on Sustainable Utilization of coastal land for economic growth, Revitalizing Coastal Resources & biodiversity for services, livelihoods and climate adaptation; Investment to support transformative approaches for coastal and green infrastructure; and Coastal ‘smart’ village conglomerates.] Proposed components will have significant positive impacts on the coastal and marine environment. Implementing the project activities however could have some minor to moderate adverse environmental and social impacts and/or risks of temporary nature. These could be due to : (i) activities related to civil works which have potential to cause environmental Environmental Assessment OP/BP 4.01 Yes pollution, and pose risks to health and safety, (ii) nature of coastal conservation / protection interventions which could have local impacts if the overall coastal ecological and environmental dynamics are not considered, especially in the context of expected interventions under Pillar 3; (iii) occupational and public safety risks for workers and the communities. These aspects would assume importance when the project locations are in the proximity to sensitive areas. Hence, there is a need for systematic safeguards management with pre-defined framework for risk mitigation, if any. To identify and manage such risks, it is required to establish an Environmental and Social Management Framework (ESMF) with screening mechanism, impact assessment procedures, and Environmental management measures complying with World Bank requirements. Jul 09, 2018 Page 7 of 10 The World Bank Enhancing Coastal and Ocean Resource Efficiency Project (P167804) Hence, the Borrower would prepare an ESMF as part of Project preparation. The ESMF would also identify the requirements and responsibilities for preparing Environmental Impact Assessments (EIA) as a precondition for individual investments that are likely to have higher environmental impact. Since location and design information for conducting activity-specific EIA for some of the project activities are likely to be available only during project implementation, the ESMF will define the detailed process for the consultations, reviews, and clearances. The ESMF and EIAs / EMPs for the first year (30%) interventions under Bank project will be prepared, cleared and disclosed by appraisal Considering the proposed project and its focus, the Performance Standards for Private Sector No Private Sector activities are not envisaged and hence Activities OP/BP 4.03 not triggered At this stage, proposed activities are not envisaged to infringe in to any of the natural habitats. This will be reviewed during preparation stage, when location- Natural Habitats OP/BP 4.04 TBD specific information for the proposed project activities would be available. If any of the project activities involve or are likely to impact natural habitats, OP 4.04 will be triggered. Preliminary analysis does not indicate likely impact or harm to forests and do not involve in any forest based commercial activities or logging. This will be reviewed during preparation stage, when location-specific information for the proposed project activities would Forests OP/BP 4.36 TBD be available. Potential impacts on mangroves, coastal plantations and forests due to conservation / enhancement measures will be specifically reviewed during preparation stage to determine the need to trigger this policy. Pest Management related aspects would not be Pest Management OP 4.09 No applicable for this project, and hence this policy is not triggered. Project locations are not yet known. As part of project preparation, the need for triggering OP 4.11 will be determined based on whether the program will include activities which would impact Physical or Physical Cultural Resources OP/BP 4.11 TBD Cultural Resources. Irrespective of triggering the policy, the proposed EMF shall integrate considerations for physical and cultural resources including chance find procedures. Jul 09, 2018 Page 8 of 10 The World Bank Enhancing Coastal and Ocean Resource Efficiency Project (P167804) Since the project locations are not yet known, the applicability of OP 4.10 is not determined. However, since the project investments spread along India’s Indigenous Peoples OP/BP 4.10 TBD entire coast, including island territories, some locations may have indigenous population and this aspect need to be determined during project preparation period. Since exact project investment activities and locations Involuntary Resettlement OP/BP 4.12 TBD are not know yet , the need for triggering OP/BP 4.12 will be determined during project preparation. This project is not envisaged to involve any activity Safety of Dams OP/BP 4.37 No related to Safety of Dams as per OP/BP 4.37 and hence this policy is not triggered. Project locations are not yet known. As part of project preparation, the need for triggering OP/ BP7.50 will be Projects on International Waterways TBD determined based on whether the project will include OP/BP 7.50 activities which would have an impact on International waterways and its legal aspects. Project activities are not expected to be taken up in Projects in Disputed Areas OP/BP 7.60 No disputed territories and hence this policy is not triggered E. Safeguard Preparation Plan Tentative target date for preparing the Appraisal Stage PID/ISDS Dec 31, 2018 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 Following studies will be undertaken by deploying independent consultants and will be completed before by December 31, 2018. (i) Social – Social Assessment, leading to a Social Management Framework. (ii) Environmental – Environmental Assessment and Environmental Management Framework (iii) Specific safeguard documents as required for the known sub-projects will be prepared before the appraisal CONTACT POINT World Bank Milen F. Dyoulgerov Vollen, Sita Ramakrishna Addepalli Senior Environmental Specialist Jul 09, 2018 Page 9 of 10 The World Bank Enhancing Coastal and Ocean Resource Efficiency Project (P167804) Borrower/Client/Recipient Republic of India Sameer Kumar Khare Joint Secretary jsmi-dea@nic.in Implementing Agencies Society of Integrated Coastal Management A K Mehta Additional Secretary and Natonal Project Director akmehta@nic.in 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): Milen F. Dyoulgerov Vollen, Sita Ramakrishna Addepalli Approved By APPROVALTBL Safeguards Advisor: Maged Mahmoud Hamed 26-Sep-2018 Practice Manager/Manager: Kseniya Lvovsky 26-Sep-2018 Country Director: Luc Lecuit 03-Oct-2018 Jul 09, 2018 Page 10 of 10