INTEGRATED SAFEGUARDS DATA SHEET APPRAISAL STAGE Report No.: ISDSA7318 Public Disclosure Copy Date ISDS Prepared/Updated: 15-Feb-2014 Date ISDS Approved/Disclosed: 27-Feb-2014 I. BASIC INFORMATION 1. Basic Project Data Country: Uganda Project ID: P145101 Project Name: Uganda: Albertine Region Sustainable Development Project (P145101) Task Team Dean A. Cira Leader: Estimated 27-Jan-2014 Estimated 26-Mar-2014 Appraisal Date: Board Date: Managing Unit: AFTU1 Lending Investment Project Financing Instrument: Sector(s): Vocational training (10%), Other industry (8%), Sub-national government administration (17%), Rural and Inter-Urban Roads and Highwa ys (65%) Theme(s): Education for the knowledge economy (25%), City-wide Infrastructure and Service Delivery (25%), Infrastructure services for private sector development (25%), Rural services and infrastructure (25%) Is this project processed under OP 8.50 (Emergency Recovery) or OP No 8.00 (Rapid Response to Crises and Emergencies)? Public Disclosure Copy Financing (In USD Million) Total Project Cost: 153.89 Total Bank Financing: 145.00 Financing Gap: 0.00 Financing Source Amount BORROWER/RECIPIENT 8.89 International Development Association (IDA) 145.00 Total 153.89 Environmental B - Partial Assessment Category: Is this a No Repeater project? 2. Project Development Objective(s) To improve regional and local access to infrastructure, markets and skills development in the Albertine Region of Uganda. Page 1 of 11 3. Project Description The Government of Uganda has requested World Bank support to prepare for and facilitate a more orderly, sustainable and inclusive transformation of the Albertine Region which is anticipating rapid Public Disclosure Copy growth and development related to planned oil sector developments. Of particular concern to the Government is ensuring the development of: (i) regional transport infrastructure that will improve connectivity and access within and to the Albertine Region and facilitate an economy centered not only on oil, but also agriculture, fishing and tourism; (ii) local area development for orderly and planned growth and improvements in the infrastructure and services of rapidly urbanizing centers in the region and improved access for rural communities; and (iii) a more skilled workforce that could respond to the demands and leverage the employment opportunities that are emerging in the region. Therefore, the Project is envisaged to have three components: (i) Regional Access and Connectivity; (ii) Local Access and Development ; (iii) Skills Access and Upgrading. Component 1 - Regional Access and Connectivity ($95Million) This component will finance the upgrading of an approximately 100 km stretch of road from Kyenjojo to Kabwoya which forms part of the 238 kilometer Kyenjojo-Hoima-Masindi–Kigumba road connecting the Districts of Kyenjojo, Kibaale, Hoima, Masindi and Kiyrandongo in Western Uganda The work will entail upgrading of the existing unpaved gravel road to a paved Class II (bitumen or asphalt) standard road. The component will also finance the costs associated with construction supervision and individual consultant’s costs to support the Uganda National Roads Authority in the oversight of the component. The remaining stretch from Kabwoya to Kigumba is being financed by the African Development Bank (AfDB) under the Road Sector Support Project 4. The two projects are well-timed and there will be close coordination on implementation to ensure consistency The Kenyjojo-Hoima-Masindi-Kigumba corridor forms the backbone of the Albertine Region. There Public Disclosure Copy are a number of rural towns and trading centers with considerable populations living along the road which is the main road connecting the urban centers of Kyenjojo, Hoima and Masindi. There are also important tourist destinations in the region. The road is also a strategic corridor in western Uganda, connecting international transport routes between countries to the south east of Uganda such as Rwanda, the Democratic Republic of Congo and Zambia, to countries in the northeast such as Sudan. In addition, 43% of oil products from the proposed refinery in the region will be transported along the road. It is therefore strategically important for opening access to the region, its major economic and social centers and for the long-term development of the region and its key economic sectors. Component 2 – Local Access, Planning and Development ($25 Million) This component will finance town planning and infrastructure development in three key centers in the Albertine region: (i) Hoima District Council, (ii) Buliisa District Council, and (iii) Buliisa Town Council. Infrastructure investments will be focused, for greater impact, on rural District roads and some urban roads. Economic infrastructure will support markets, fish landing sites, storage facilities and slaughterhouses to benefit the majority farming and fishing communities. Town planning will focus on towns that are expected to benefit from improved infrastructure from oil development and from proximity to the planned refinery. Also financed under this component will be consultant services to support implementation, engineering design and supervision and technical assistance. The Page 2 of 11 component will also include the financing of a regional strategic development plan that could form the basis of a follow-on operation for the region. Public Disclosure Copy This component will focus on three local areas - Hoima District, Buliisa District and Buliisa Town Council. These three areas were chosen because of the immediate oil development and population influx pressures on these communities. The preliminary choice of infrastructure sub-projects were selected from existing plans and identified through numerous consultations with both the local and central governments. By and large, the sub-projects identified align fairly well with the Five-Year Development Plans of the selected local governments. The limited geographic focus and the limited investment menu was chosen to maximize impact and the heavy focus on District roads is to benefit the majority rural population by ensuring that they have better access to infrastructure, markets and services. Locations to benefit from planning assistance were chosen based on their potential role in contributing to the future development of the region the on-going regional physical plan that wi ll be completed in 2014 will be a foundation for more detailed plans. Component 3 – Skills Access and Upgrading ($25 Million) This component will finance technical assistance, studies, training, and equipment to support establishment of the Oil and Gas committee under the Reform Task Force. It will also finance upgrading of the Uganda Petroleum Institute and the Kichwamba Technical College including physical infrastructure, goods, curricula development and instructor training. The financing of bursaries for people living in the Albertine Region to attend technical training institutes will also be included Component 3 comprises two sub-components. The first sub-component will focus on establishing mechanisms for the coordination of skills development for the Albertine Region, with a focus on sectors of potential growth arising from the oil production. The sub-component will finance the establishment of an oil and gas (O&G) committee under the Reform Task Force (RTF) comprised of stakeholders including relevant government ministries, industry, trainers, and professional bodies Public Disclosure Copy from the private sector. The purpose of the RTF O&G committee is to: � Provide a platform for the engagement of the public and private sectors to jointly support the development of skills training in the Region; � Determine, through appropriate studies, the skills requirements for the Region over the short, medium and long-term; � Define the national occupational standards, to describe the skills and knowledge needed to perform competently in an occupation. The Project will finance technical assistance, studies, training, and equipment for the RTF O&G committees. Salaries of staff will be financed by the Government of Uganda. The sub-component will also support improvements in the quality and relevance of at least two institutions in the Albertine Region. It will finance civil works, equipment and associated facilities for the upgrading of the Uganda Institute for Petroleum in Kigumba (UPIK) and the Uganda Technical College in Kichwamba (UTC); and it will also finance the costs associated with improving curriculum, testing and trainer competencies to internationally accredited levels to ensure that training standards improve to those required by private sector employers. Training of specialized technicians for the petroleum industry at UPIK (petroleum operations, mechanical maintenance, electrical maintenance, and instrumentation) for the emerging petroleum industry will also be Page 3 of 11 supported. And training of artisans and craftsmen at UTC-Kichwamba will focus on construction (carpentry and joinery, bricklaying, plumbing, electrical installation, scaffolding, welding and fabrication) which will be critical during the development phase of the oil and gas sector. Even after Public Disclosure Copy the development phase, it is envisioned that there will still begrowing demand for construction workers as the Government uses oil revenue to accelerate growth by investing in the expansion of infrastructure such as schools, hospitals, roads etc. The institutes, which were selected to provide a regional benefit, will be upgraded to a higher standard to better prepare graduates to participate in emerging employment opportunities. An assessment of BTVET training needs in the Albertine region will round out this sub-component. The second sub-component will focus on improving access to relevant skills training programs through the provision of bursaries to learners from the Region. While the institutions targeted in the second sub-component will require two to three years of management, technical and administrative reforms to yield results with respect to developing quality and demand-responsive skills for the labor market, this sub-component seeks to address the short-term skills needs of the Region during the development phase of the oil production. These are portable skills that can be used in other sectors throughout the country. The component will finance bursaries for learners from the Region to undergo skills training in the foremost institutes in the country on construction, agriculture and tourism. Females will be given preference for the bursaries since they only constitute about 25 percent of enrollment within public BTVET institutes currently. In Kichwamba females constitute only 10 percent of enrollments. 4. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The project will be implemented in the Albertine rift valley region of western Uganda, an area of high biodiversity. The road (Component 1) to be upgraded from gravel to bitumen standard is 238 Km with gravel carriage way located in Western Uganda, running through Districts of Kyenjojo, Kibaale, Hoima, Masindi and ending up at Kigumba Town Council in the newly created Kiryandongo District connecting to Gulu highway. The World Bank project will finance Public Disclosure Copy approximately the first 100 km of of the Kyenjojo-Hoima (Kabwoya) section. The African Development Bank is financing the remaining 138 km. The Kyenjojo - Hoima stretch lies in hilly and rolling terrain with degraded forests in Kibaale district and parts of Hoima district. There are 2 bridges along this link. The proposed construction, upgrading and rehabilitation of Kyenjojo – Hoima – Masindi – Kigumba road will be restricted to the existing road alignment except in a few places where there are socio-cultural sites to preserve. The Preparing and Planning for Urban Growth Component (Component 2) is anticipated to be implemented in the urban areas of Hoima and Bulisa Districts. Works are anticipated to be those with localized negative environmental impacts associated with civil works such as drainage, markets, upgrading of urban roads and other urban infrastructure. The Skills Development will also be implemented in the Lake Albert region. Construction works would be limited to the rehabilitation and upgrading of existing facilities and would have limited environmental impact. It is anticipated that oil production activities and improved access to the Albertine region will promote economic and industrial developments, with attendant environmental and social impacts which may range from pollution of Lake Albert, ecological degradation and loss of biodiversity, loss of access to land resources, and so on. In order to ensure that environmental issues and concerns are considered during early decision making and integrated into laws/regulations and major Policies, Plans and Programs (PPPs) associated with the oil and gas sector, Government of Uganda, through Page 4 of 11 financial support from the Royal Norwegian Government, undertook Strategic Environmental Assessment of oil and gas activities in the Albertine Region. 5. Environmental and Social Safeguards Specialists Public Disclosure Copy Herbert Oule (AFTN3) Constance Nekessa-Ouma (AFTCS) 6. Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes Triggered because the program will support BP 4.01 investments with potential adverse environmental impacts. For the largest project activity supported with the bulk of project financing -- upgrade (paving) of the Hoima-Kyenjojo road - an environmental and social impact assessment (ESIA) was undertaken and Environmental and Social Management Plan (ESMP) prepared for component 1 in consultation with all the respective district local governments, central ministries and agencies and the local communities along the road. The ESIA was disclosed in- country on May 23, 2013 and July 25, 2013 and at the Bank’s infoshop on January 28, 2014. The ESIA was approved by the National Environment Management Authority on January 13, 2014. For smaller project activities the locations/ size of which cannot be identified ex-ante under components 2 and 3, ESMF has been prepared, consulted upon, and disclosed. Mitigation Public Disclosure Copy measures stemming from ESIAs include addressing potential induced impacts on natural habitats including forest areas. Component 2 will finance the design, construction and supervision of roads and economic infrastructure in select Districts and Towns in the region while component 3 will finance civil works and equipment for the upgrading of two vocational institutions with fully equipped workshops and associated facilities. Since the specifics in terms of location/identity of sub-components to be implemented under these two components, Environmental and Social Management Framework (ESMF) has been prepared in Consultation with the respective Local Governments and Central Government Agencies that have a stake in the project, directly/indirectly. The ESMF was disclosed in-country on January 30, 2014 and at the Bank’s infoshop on February 4, 2014. The ESMF provides a process to assess Page 5 of 11 the potential environmental and social impacts of project components 2 and 3. The ESMF established clear guidelines and methodologies Public Disclosure Copy for the identification and assessment of environmental and social impacts. Natural Habitats OP/BP 4.04 Yes Triggered because the Albertine Rift area includes a number of protected areas and other natural habitats (large National Parks, Forest Reserves, wetlands, Lake Albert). The activities located within the Rift Valley may potentially affect these natural habitats. The ESMF and activity- specific EIAs will behave been used to identify and address potential impacts on natural habitats. For potential impacts which cannot be avoided, adequate mitigation measures will behave been included in the ESMPs. Forests OP/BP 4.36 Yes Applicable because the road improvements may have impacts on the adjacent forest reserves, particularly through induced impacts due to improved access. ESMPs include measures to address such impacts. Under component 1, road widening shall not be undertaken in the forested areas and all construction activities shall be restricted to the existing road alignment through the forested areas. Pest Management OP 4.09 No Not Applicable Public Disclosure Copy Physical Cultural Resources OP/ Yes Triggered because project investments will BP 4.11 involve civil works and may potentially affect known and un-known physical cultural resources in the area. A “chance finds” procedure has been provided in the ESIA and in the ESMF. Indigenous Peoples OP/BP 4.10 No The task team confirms there are no indigenous people that may be affected by the project. The project area is dominated by natives of Bunyoro, Bagungu and Alur. This was confirmed before appraisal. Involuntary Resettlement OP/BP Yes Applicable because the project investments may 4.12 support interventions that could entail land taking or limiting access to land and other resources. A Resettlment Action Plan (RAP) was prepared, updated and consulted upon, which will guide the land acquisition issues for component 1 – upgrading Kenjojo - Kabwoya road section of approximately 100 kms, and was disclosed before appraisal. In addition, an RPF was developed, Page 6 of 11 consulted upon, and was disclosed before appraisal, which will address potential involuntary resettlement issues under components Public Disclosure Copy 2& 3- Local Access, Planning & Development and Skills Access and Upgrading, respectively. Safety of Dams OP/BP 4.37 No The project does not support or depend on dams. Projects on International No The project does not affect international Waterways OP/BP 7.50 waterways. Projects in Disputed Areas OP/BP No There are no disputed areas in the project area. 7.60 II. 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: The project has been assigned Environmental Assessment Category B since it involves sub- projects with readily predictable environmental and social impacts. The sub-projects include upgrading of an approximately 100 km of an existing stretch of road from Kyenjojo to Kabwoya forming part of the 238 kilometer Kyenjojo-Hoima-Masindi–Kigumba road and upgrading of 2-3 vocational/technical institutions in the Albertine region with readily predictable environmental and social impacts. In addition, the project will also finance planning and infrastructure development of 2-3 town councils and/or local governments. While the planning may not have immediate environmental and social impacts, it will identify issues that will be addressed in future urban development of the towns and local governments involved. Some 5700 people will be affected by the project. The majority of project-affected people (PAPs) will only lose a small section of land Public Disclosure Copy that abuts the road reserve. In some cases, this will also result in the loss of permanent or temporary structures, or crops. If they have room on their remaining land holding, PAPs are likely chose to construct new structures or plant crops on their adjacent land, rather than moving to a new village. As such, current social ties and access to infrastructure or services such as water sources, schools, shops, transport services and places of worship will be maintained. The potential safeguard issues and impacts associated with the proposed project include: adjustment of road alignment in some sections resulting in entailing relocation of water and power mains; sourcing of road construction materials which may result in loss of vegetation cover, excessive noise, vibrations and dust from blasting/crushing of rocks, including risks of flying rocks; haulage of earth construction material may pause accident risk to road users and communities, construction dusting contaminating goods in road side markets and nose at sensitive receptors (schools and health centres); establishment and operation of equipment yard and workers’ camps; demolition of structures within the reserve of proposed road; traffic diversion may cause temporary delays in transportation of goods and passengers/cause traffic congestion/ accidents; limited change in drainage patterns as a result of widening the road embankment and construction of bridges along the road stretch especially at key rivers – namely: Muzizi and Nkusi increasing sediment load which may temporarily impair water and drainage. Other impacts include amongst others: safety of workers and the public during construction works, soil and water contamination due to potential spillage and leakage of oils and other toxic materials including Page 7 of 11 operation of asphalt plant without proper housekeeping which may contaminate the environment, noise and vibration nuisance from road equipment, dust and air pollution from road works, acquisition of construction materials such as stone aggregates, murram, and possible displacement Public Disclosure Copy of land-uses and livelihoods of people who may be found along the road reserves as well as the sites of the technical/vocational institutions. There are no significant potential large scale, significant and/or irreversible environmental and social impacts that may be associated with the project. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: N/A 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. None 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 ESIA and the RAP were prepared and updated for component 1 –Regional Access and Connectivity, involving upgrading of an approximately 100 km of an existing stretch of road from Kyenjojo to Kabwoya. The ESIA and RAP provide the process and guidance for assessing the potential environmental and social including resettlement impacts including compenstation for the Road component of ARDSP. In addition, an Environmental and Social Management Framework (ESMF) and a Resettlement Policy Framework (RPF) were prepared for component 2 - Local Access, Planning and Development and Component 3 - Skills Access and Upgrading respectively; establishing clear mechanisms for environmental and social screening, conduct of Environmental and Social Impact Assessment where necessary, development of Environmental and Social Management Plans (ESMPs) and Resettlement Action Plans (RAPs), guidance for managing, monitoring and reporting the implementation of environmental and social, including resettlement impacts. The ESMF has also provided the following: i) Chance Finds Procedure to be used in Public Disclosure Copy managing any PCRs that may be encountered during project implementation; ii) included procedures to identify and address potential impacts on natural habitats; and iii) included guidelines for preparation of ESMPs which will include measures to address impacts on forests. In addition, the ESIA, RAP, ESMF and RPF have established a Grievance Redress Mechanism which shall be used to handle complaints that may arise during project implementation. The ESIA, RAP, ESMF and RPF prepared shall were disclosed in country and at World Bank’s infoshop before appraisal completion. The project will be implemented by three government agencies UNRA, MoES and MoLHUD. All the three agencies have undertaken preparation of relevant safeguard instruments and have experience of undertaking World Bank supported projects (including implementing the safeguards requirements) and therefore will not have great challenges in implementing the safeguard requirements under ARSDP. UNRA has a fully-fledged safeguard unit that has environment and social safeguard staff, although it may be overwhelmed by the numerous projects implemented within its jurisdiction. MoES and MoLHUD have designated staff to work on social safeguard issues with this project. ARSDP project in MoLHUD will be coordinated with by an Environment and Social development staff funded by another Bank projects. MoES and MoLHUD have also trained a reasonable number of staff in Management of Land acquisition, rehabilitation and resettlement to support the implementation of land acquisition and compensation issues. The Ministries of Local Government and Education and Sports are recommended to either recruit Page 8 of 11 Environmental Specialists or hire Environmental Consultants on a retainer basis to guide management of the environmental and social aspects of their projects. The project host Districts have District Environment Officers, District Community Development officers, District Physical Public Disclosure Copy Planners and District Land officers who may be involved in the project support supervision during implementation. The implementing agencies will work closes closely with NEMA, which will be responsible for approval of environment and social assessments including undertaking follow-up on compliance monitoring of projects in accordance to their mandate. In addition, there is established a National Multi-sectoral Environmental Monitoring Committee that undertakes quarterly monitoring of oil and gas activities in the Albertine region. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The preparation of the ESIA, RAP, ESMF and RPF involved consultations with key stakeholders such as National Environment Management Authority (NEMA), Ministry of Works and Transport, Ministry of Lands Housing and Urban Development, National Water and Sewerage Corporation (NWSC), Electricity Distribution Company – UMEME, Ministry of Water and Environment, Local Governments (both technical and political teams) and communities of Masindi, Bulisa, Hoima, Kyenjojo as well as technical staff and communities neighboring Uganda Institute for Petroleum in Kigumba (UPIK) and the Uganda Technical College in Kichwamba (UTC). The consultation was done at various times during the preparation and upgrading of RAP/ ESIA as well as during the preparation the ESMF and RPF which included institutional and community field visits and discussions as well as joint met consultative meetings. The safeguard documents, namely the ESIA, RAP, ESMF, RPF were disclosed both in-country in the one or two local daily newspapers, website for the three implementing agencies and MoFPED and at the WB’s infoshop. B. Disclosure Requirements Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank 08-Oct-2013 Date of submission to InfoShop 24-Jan-2014 Public Disclosure Copy For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors "In country" Disclosure Uganda 23-May-2013 Comments: The ESIA was disclosed on May 23 and again on July 25, 2013. It was approved by NEMA on January 13, 2014. The ESMF was disclosed on February 4, 2014. Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank 08-Oct-2013 Date of submission to InfoShop 30-Jan-2014 "In country" Disclosure Uganda 24-Jan-2014 Comments: The RPF was disclosed in-country on January 24, 2014. The RAP was disclosed on on February 4, 2014. If the project triggers the Pest Management and/or Physical Cultural Resources policies, the respective issues are to be addressed and disclosed as part of the Environmental Assessment/ Audit/or EMP. If in-country disclosure of any of the above documents is not expected, please explain why: Page 9 of 11 C. Compliance Monitoring Indicators at the Corporate Level Public Disclosure Copy OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) Yes [ ] No [ ] NA [ ] report? If yes, then did the Regional Environment Unit or Sector Yes [ ] No [ ] NA [ ] Manager (SM) review and approve the EA report? Are the cost and the accountabilities for the EMP incorporated Yes [ ] No [ ] NA [ ] in the credit/loan? OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or Yes [ ] No [ ] NA [ ] degradation of critical natural habitats? If the project would result in significant conversion or Yes [ ] No [ ] NA [ ] degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank? OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural Yes [ ] No [ ] NA [ ] property? Does the credit/loan incorporate mechanisms to mitigate the Yes [ ] No [ ] NA [ ] potential adverse impacts on cultural property? OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/ Yes [ ] No [ ] NA [ ] process framework (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Yes [ ] No [ ] NA [ ] Sector Manager review the plan? Public Disclosure Copy OP/BP 4.36 - Forests Has the sector-wide analysis of policy and institutional issues Yes [ ] No [ ] NA [ ] and constraints been carried out? Does the project design include satisfactory measures to Yes [ ] No [ ] NA [ ] overcome these constraints? Does the project finance commercial harvesting, and if so, Yes [ ] No [ ] NA [ ] does it include provisions for certification system? The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the Yes [ ] No [ ] NA [ ] World Bank's Infoshop? Have relevant documents been disclosed in-country in a public Yes [ ] No [ ] NA [ ] place in a form and language that are understandable and accessible to project-affected groups and local NGOs? All Safeguard Policies Have satisfactory calendar, budget and clear institutional Yes [ ] No [ ] NA [ ] responsibilities been prepared for the implementation of measures related to safeguard policies? Page 10 of 11 Have costs related to safeguard policy measures been included Yes [ ] No [ ] NA [ ] in the project cost? Public Disclosure Copy Does the Monitoring and Evaluation system of the project Yes [ ] No [ ] NA [ ] include the monitoring of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed Yes [ ] No [ ] NA [ ] with the borrower and the same been adequately reflected in the project legal documents? III. APPROVALS Task Team Leader: Name: Dean A. Cira Approved By Regional Safeguards Name: Alexandra C. Bezeredi (RSA) Date: 26-Feb-2014 Advisor: Sector Manager: Name: Rosemary Mukami Kariuki (SM) Date: 27-Feb-2014 Public Disclosure Copy Page 11 of 11