The World Bank DMF III - Implementing Partners (P173553) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 03/11/2021 | Report No: ESRSC01906 Mar 26, 2021 Page 1 of 8 The World Bank DMF III - Implementing Partners (P173553) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) World OTHER P173553 Project Name DMF III - Implementing Partners Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Macroeconomics, Trade Investment Project 4/1/2021 and Investment Financing Borrower(s) Implementing Agency(ies) Debt Management WAIFEM, DRI, MEFMI Section of the Commonwealth Secretariat (COMSEC), Debt Relief International (DRI), West African Public Disclosure Institute for Financial and Economic Management (WAIFEM), Macroeconomic & Financial Management Institute of Eastern & Southern Africa (MEFMI) Proposed Development Objective Financing (in USD Million) Amount Total Project Cost 1.84 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No Mar 26, 2021 Page 2 of 8 The World Bank DMF III - Implementing Partners (P173553) C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] The DMF is a multi-donor trust fund whose objective is to strengthen debt management to reduce debt-related vulnerabilities and improve debt transparency. The PDO of the project is to strengthen the capacity of DMF III eligible countries to manage debt effectively, so as to enable governments to reduce debt-related vulnerabilities and improve debt transparency. The DMF seeks to achieve its objective through capacity building activities, including design and application of tailored advisory services and technical assistance, applied analytical works, trainings, webinars and peer-to-peer learning. The DMF also producesknowledge, leverages best practices and harnesses Bank and Fund expertise, customizing this knowledge to best serve beneficiary countries including those that are low-income and fragile and conflict-affected (FCS). These proposed activities are not expected to incur environmental and social risks. DMF III responds to the evolving needs of client countries as the financial landscape of DMF-eligible countries has changed. DMF III has expanded activities in areas that have become increasingly relevant for client countries, such as Public Disclosure domestic market development, asset and liability management, cash forecasting and cash management, and management of debt-related contingent liabilities and other fiscal risks as defined below. The DMF work program is demand drive. The primary beneficiary of DMF activities are governments of IDA-eligible countries, , particularly those with weak debt management capacity and institutions and elevated debt vulnerabilities. Other stakeholders include the DMF implementing partners, DMF donors and the Panel of Experts, among others. The DMF III design and delivery has benefitted from extensive consultations with these stakeholders. This included a survey to DMF-eligible country debt management offices to gauge TA and training topic needs. D. 2. Borrower’s Institutional Capacity Technical assistance and training activities will be delivered by the implementing partners specialized in debt management systems in coordination with the World Bank and towards implementation of the DMF III work program. This is enabled through the DMF III multidonor trust fund Recipient Executed Activities. This is the third phase under DMF Trust Fund. Implementing Agencies • The Commonwealth Secretariat (COMSEC): an intergovernmental organisation that supports 54 member countries to achieve the Commonwealth's aims of development, democracy and peace, including through its public debt management programme. https://thecommonwealth.org/about-us/secretariat • Debt Relief International (DRI): is part of the the Development Finance International (DFI) Group, a non-profit capacity-building, advocacy, advisory and research group which works with more than 80 governments, international organisations and civil society organisations worldwide to maximise their debt relief and to borrow and lend Mar 26, 2021 Page 3 of 8 The World Bank DMF III - Implementing Partners (P173553) responsibly and sustainably, and to spend the proceeds of debt relief and new borrowing on reducing poverty and inequality. https://www.development-finance.org/en/about-us • The Macroeconomic and Financial Management Institute of Eastern and Southern Africa (MEFMI): a regionally owned institute currently with 14 member countries: Angola, Botswana, Burundi, Kenya, Lesotho, Malawi, Mozambique, Namibia, Rwanda, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe. http://mefmi.org/ • The West African Institute for Financial and Economic Management (WAIFEM): support the Central banks of Gambia, Ghana, Liberia, Nigeria, Sierra Leone. Its objective is to strengthen capacity to manage macroeconomic policy formulation, implementation, publicly guaranteed external debt, private debt and domestic debt including contingent liabilities, etc. http://www.waifem-cbp.org/index.html • United Nations Conference on Trade and Development (UNCTAD): is a leading provider of technical cooperation in the area of capacity-development in debt management through its Debt Management and Financial Analysis System (DMFAS) Program. Within the Debt and Development Finance Branch of the Globalization and Development Strategies Division, the DMFAS Program forms an integral part of UNCTAD. The objective of the DMFAS program is to strengthen Government’s capacity to manage their debt effectively and sustainably, in support of poverty reduction development, transparency and good governance. The program has so far worked directly at the country level with more than 110 institutions (Ministries of Finance & Central Banks) in 72 countries. https://unctad.org/divs/gds/dmfas/Pages/default.aspx Public Disclosure Borrower/Recipients • Debt Management Unit of the Commonwealth Secretariat (COMSEC) • Debt Management Program of the United Nations Conference on Trade and Development (UNCTAD-DMFAS) • Debt Relief International (DRI) • Macroeconomic & Financial Management Institute of Eastern & Southern Africa (MEFMI) • West African Institute for Financial And Economic Management (WAIFEM) II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Low Environmental Risk Rating Low The project is a third phase of a Debt Management Facility (DMF). No environmental risk or potential impacts are expected. DMF III is a a multidonor trust fund supporting capacity building facility to help strengthen debt management capacity in eligible countries. DMF III activities comprise (i) activities executed by the Bank; (ii) activities executed by Recipients; and (iii) activities executed by the IMF. This proposed project is focused on the recipient executed activities with technical assistance providers, which have been Implementing Partners (IPs) under DMF I and DMF II. The Project will consist of five IPs grants with the following components (i) Debt Management Technical Assistance and (ii) Debt Management Training. According to their expertise, IPs will participate in technical assistance related to Debt Management Performance Assessments (DeMPA), debt reform plans, medium term debt management Mar 26, 2021 Page 4 of 8 The World Bank DMF III - Implementing Partners (P173553) strategies (MTDS) or TA on debt reporting and monitoring, or prepare data for MTDS, and debt sustainability assessments. They would also provide logistical support for training provided by the DMF and may support the World Bank in the development of new debt management training areas. Social Risk Rating Low DMF III is a capacity building facility to help strengthen debt management capacity in eligible countries. DMF III activities comprise (i) activities executed by the Bank; (ii) activities executed by Recipients; and (iii) activities executed by the IMF. This proposed project is focused on the recipient executed activities with technical assistance providers, which have been Implementing Partners (IPs) under DMF I and DMF II. The Project will consist of five IPs grants with the following components (i) Debt Management Technical Assistance and (ii) Debt Management Training. According to their expertise, IPs will participate in technical assistance related to Debt Management Performance Assessments (DeMPA), debt reform plans, MTDS or TA on debt reporting and monitoring, or prepare data for MTDS, and debt sustainability assessments. They would also provide logistical support for training provided by the DMF and may support the World Bank in the development of new debt management training areas. Based on the experience of DMF Phase I and II, DMF III is not expected to incur any social risks and impacts with the capacity building TA activities. The key stakeholders involved include the World Bank, IMF, the implementing partners (expert institutions who will contribute to the delivery of DMF III activities), and the eligible beneficiary governments. It is not expected to incur any stakeholder risks under the capacity building program. B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered Public Disclosure B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: Based on the proposed interventions, no environmental risk or impacts are expected from the project proposed interventions for debt management including debt management technical assistance and debt management training. The DMF is a multi-donor trust fund. Technical assistance under DMF will be delivered through capacity building activities, including design and application of tailored advisory services and technical assistance, applied analytical work, training, webinars and peer-to-peer learning. These capacity building activities are not expected to incur environmental and social risks. Aspects relevant to a Stakeholder Engagement Plan (SEP) and a Labor Management Procedure (LMP) have been built into the ESCP and access to training will be conducted through fair and open processes, in a socially inclusive manner that provides equal opportunity for all. Areas where “Use of Borrower Framework” is being considered: Use of Borrower Framework is not been considered. ESS10 Stakeholder Engagement and Information Disclosure The key stakeholders involved are the beneficiary governments of DMF-eligible countries, TA provider institutions, DMF Development Partners, World Bank and IMF. Prior analytical work and active consultations have taken place in the design and delivery of the TA in the first two phases of DMF and in the design of the third phase of the DMF. DMF III will continue this stakeholder engagement in the design and delivery of activities. The project has reviewed early consultations carried out, developed measures and mechanisms to continue consultation through the project Mar 26, 2021 Page 5 of 8 The World Bank DMF III - Implementing Partners (P173553) implementation. These are documented in the SEPs prepared and reflected in the ESCP. For UNCTAD, aspects relevant to SEP have been built into the ESCP. B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions The capacity development (TA and training) activities will be delivered through implementing partner institutions that specialize in areas of public debt management. These institutions are mostly international development institutions or associated with such organizations. Specific activities will be delivered through their staff and short-term consultant experts. In order to ensure labor and working conditions meet to ESS2 standard, the four Implementing Partners have developed LMPs for the project. For UNCTAD, it will implement its activities in accordance with the policies and procedures that govern UNCTAD staff and the Agency’s direct contractor, and that application of these policies and procedures will satisfy the relevant aspects of ESS2, including a grievance redress mechanism. UNCTAD will ensure that provisions on GBV are included in contracts and that there is a process to ensure enforcement. ESS3 Resource Efficiency and Pollution Prevention and Management Not relevant Public Disclosure ESS4 Community Health and Safety Not relevant ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Not relevant ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources Not relevant ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities not relevant ESS8 Cultural Heritage Not relevant Mar 26, 2021 Page 6 of 8 The World Bank DMF III - Implementing Partners (P173553) ESS9 Financial Intermediaries Not relevant C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No This project will not intervene in international waters. OP 7.60 Projects in Disputed Areas No This project will not intervene in disputed areas. III. WORLD BANK ENVIRONMENTAL AND SOCIAL DUE DILIGENCE A. Is a common approach being considered? No Financing Partners Debt Management Unit of the Commonwealth Secretariat (COMSEC) Debt Relief International (DRI) West African Institute for Financial and Economic Management (WAIFEM) Macroeconomic & Financial Management Institute of Eastern & Southern Africa (MEFMI) Debt Management Program of the United Nations Conference on Trade and Development (UNCTAD-DMFAS) Public Disclosure B. Proposed Measures, Actions and Timing (Borrower’s commitments) Actions to be completed prior to Bank Board Approval: SEPs and LMPs have been prepared for four of the five Implementing Partners. For UNCTAD, the relevant aspects of SEP and LMP are reflected in the ESCP. Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP): The project has included in the ESCP the requirement to implement the project SEPs and LMPs, including its implementation arrangements, staff assignment, grievance redress mechnisms and code of conduct. The project will continue its communication and stakeholder engagement under the SEP, on at least three levels: 1. Internal. The project will organize discussion meetings or dissemination activities to inform on the activities financed activities, benefits and outcomes and any potential environmental or social risks. 2 Global. The project will prepare progress reports on the progress and outcomes and inform participating agencies, beneficiaries and country level projects. 3.Local. The projects at national level will prepare periodic reporting on the project progress, finance activities and partners, meeting with local stakeholders. Mar 26, 2021 Page 7 of 8 The World Bank DMF III - Implementing Partners (P173553) IV. CONTACT POINTS World Bank Contact: Maya V. Gusarova Title: Senior Public Sector Specialist Telephone No: +1-202-473-3466 Email: mgusarova@worldbank.org Contact: Lea Hakim Title: Senior Economist Telephone No: +1-202-458-4142 Email: lhakim1@worldbank.org Borrower/Client/Recipient Borrower: Debt Management Section of the Commonwealth Secretariat (COMSEC) Borrower: Debt Relief International (DRI) Borrower: West African Institute for Financial and Economic Management (WAIFEM) Borrower: Macroeconomic & Financial Management Institute of Eastern & Southern Africa (MEFMI) Implementing Agency(ies) Implementing Agency: WAIFEM Public Disclosure Implementing Agency: DRI Implementing Agency: MEFMI V. 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 VI. APPROVAL Task Team Leader(s): Lea Hakim, Maya V. Gusarova Practice Manager (ENR/Social) Helene Monika Carlsson Rex Recommended on 11-Mar-2021 at 10:35:1 GMT-05:00 Mar 26, 2021 Page 8 of 8