Page 1 INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: AC429 Date ISDS Prepared/Updated: November 24, 2004 I. BASIC INFORMATION A. Basic Project Data Country: Mali Project ID: P080935 Project Name: MALI- GROWTH SUPPORT PROJECT Task Team Leader: Francois Nankobogo Estimated Appraisal Date: January 4, 2005 Estimated Board Date: February 15, 2005 Managing Unit: AFTPS Lending Instrument: Specific Investment Loan Sector: General industry/trade sector (50%) Telecommunications (20%), Mining (20%), Micro-&SME finance (10%). Theme: Regulation and competition policy (P);Infrastructure services for private sector development (S);Trade facilitation and market access (S); Small and medium enterprise support (S); Other financial and private sector development (S). Safeguard Policies Specialists in the task team: Amadou Konaré Loan/Credit amount ($m.): IDA: 55 Other financing amounts by source: TBD ($m) B. Project Objectives The overall project objective is to assist Mali accelerate growth, as reflected by increased value- added, employment creation and income generation, by supporting the most promising areas of the economy towards enhanced performance and sustainable development. The project will particularly seek to : (i) improve the performance of the micro, small and medium enterprise sector through better business environment and direct support services; (ii) support targeted investment and export promotion activities; (iii) enhance the socio-economic impact of the mining sector; (iii) increase access to, and efficiency (price and quality) of telecommunications and postal services; and (iv) increase economic opportunities in tourism and handicrafts. Indicators of performance will be developed during project preparation. C. Project Description The project consists of four components described below. Component 1: Business environment and direct services to enterprises . This component will: Page 2 i) provide support to improve the investment climate by: (a) streamlining the registration process in terms of cost and time involved in business start up operations; (b) developing procedures to streamline the corporate taxation process; and (c) improving commercial dispute resolution and arbitration mechanisms. ii) improve Business Development Services by: (a) developing a mechanism to strengthen the capacity of service providers to serve MSME clients and address market needs more appropriately, including a establishment of a Consultant Accreditation Program of local consultants, business associations, and financial institutions; and (b) setting up an electronic information system (SME Toolkit) that will provide information on BDS services, access to finance, the investment climate, fiscal issues pertaining to MSMEs, tools on best practices in business, as well as other issues that concern small businesses. iii) improve access to finance for MSMEs through: (a) the development of a program to provide technical assistance to banks that have potential to lend or increase lending to MSMEs; and (b) training of bank staff on topics related to SME finance and risk management, and complemented by a mentoring program. Component 2: Investment and export promotion. This component will support activities related to increasing direct investment in Mali, both local and foreign, as well as exports. Specific activities will support:(i) the development of sites and services for industry development by supporting the establishment of a well-functioning industrial zone as well as an operational oversight agency; (ii) improvement of airport cargo facilities; (iii) targeted investment promotion; and (iv) simplification of customs and immigration procedures; and (iv) strengthening key institutions involved in investment promotion and trade facilitation. Component 3: Sector reforms in support of private sector development 3.1. Mining sector : This component will seek to: i) improve artisanal mining production, through: (a) establishment of demonstration centers to better integrate artisanal mining into rural development; (b) improvement of environmental, sanitary and health conditions at artisanal mining sites; (d) improvement of monitoring capacity for commercialization and marketing networks for gold; and (e) putting into place special fiscal measures to stimulate development of small scale mines; ii) improve environmental management and monitoring of mining sites, through: (a) reinforcement of environmental legislation and regulations; and (b) setting up institutions and systems to manage environmental issues; iii) improve management of social, economic and financial impact of mining, through: (a) assistance to mining companies and the government to maximize the beneficial impact at the local level . (b) putting in place participatory procedures for local management of the benefits from mining, and strengthening their management capacity (e.g., training modules), including consultations about eventual closure of mine operations; (c ) addressing mining taxation issues; and (d) putting in place an information system to collect statistical information on the sector; iv) improve the collection, use and distribution of geo-scientific information, through: (a) updating relevant aspects of the geological database; (b) upgrading logistical and human Page 3 capacities at the various technical services; (c) and promoting a better understanding and knowledge of Mali’s geo-science data with potential investors. 3.2. Telecommunications and postal services This component will: i) support the development of ICT and make the sector more conducive to investment in infrastructure and delivery of services by: (a) improving the regulatory framework; (b) strengthening the capacity of the Telecommunications Regulatory Commission to optimize its ability to provide incentives to market players; and (c) strengthening the capacity of the Ministry of Communications and New Technologies in governance issues; ii) support improved access to rural telecommunications services by: (a) developing a rural telecommunications strategy; and (b) financing the implementation of the first phase of that strategy; and, iii) support reform of the postal sector by: (a) developing a postal sector policy and defining the role of the postal sector within the emerging ICT environment; (b) establishing the postal regulatory framework; (c) supporting the realignment of the postal operator with the new sector policy; and (d) defining the potential for utilizing the postal sector as a vehicle for extended distribution of financial services to rural and other areas underserved by the current financial network. 3.3. Tourism and Crafts This component will assist Mali provide support for: i) the development of the tourism sector though: (a) support to the formulation of sector policies and development plans; (b) help enhance the legal and regulatory framework for the sector so as to reduce transaction costs and improve the investment climate; (c) build capacity of players in the industry, particularly sector support institutions, tourist guides, etc; and (d) support the improvement of essential infrastructure networks. ii) the enhancement of the potential of the craft sector through: (a) the improvement and effectiveness of policies and support institutions, (b) the enhancement of skills and improvement of design and production methods; and (c) the development of market linkages (building commercial relationships between businesses and markets) in the sector. Component 4 . Project management, coordination. and monitoring. The project will assist the government in project management and coordination. Overall coordination will be the responsibility of the Ministry of Investment Promotion and Private Sector Development. At the moment, the Investment Promotion Center (CNPI) has been asked to handle the day-to-day project management, particularly procurement and financial management, in coordination with focal persons in relevant technical ministries (mining, telecommunications, tourism and handicrafts) and the private sector. Implementation of some activities pertaining to private sector support are expected to be contracted out. D. Project location Project will be coordinated in Bamako and will have nationwide coverage. E. Borrower’s Institutional Capacity for Safeguard Policies Page 4 Mali’s overall institutional capacity for safeguard policies is still weak. However, most of the line ministries (e.g. Communication and new information technologies, Energy and Mining) have some expertise that will help address issues pertaining to safeguard policies that may arise. Assistance will be provided to Mali in this area as needed. II. SAFEGUARD POLICIES THAT MIGHT APPLY Applicable? Safeguard Policy If Applicable, How Might It Apply? [x ] Environmental Assessment ( OP / BP 4.01) A Environmental and Social Impact Assessment will be prepared by the borrower, reviewed by ASPEN, approved and disclosed in country and at the Bank Infoshop prior to appraisal. [ ] Natural Habitats ( OP / BP 4.04) [ ] Pest Management ( OP 4.09 ) [X ] Involuntary Resettlement ( OP / BP 4.12) A Resettlement Policy Framework will be prepared by the borrower, reviewed by ASPEN, approved and disclosed in country and at the Bank Infoshop prior to appraisal. [ ] Indigenous Peoples ( OD 4.20 ) [ ] Forests ( OP / BP 4.36) [ ] Safety of Dams ( OP / BP 4.37) [ ] Cultural Property (draft OP 4.11 - OPN 11.03 ) [ ] Projects in Disputed Areas ( OP / BP / GP 7.60) * [ ] Projects on International Waterways ( OP / BP / GP 7.50) Environmental Assessment Category: [ ] A [X] B [ ] C [ ] FI [ ] TBD (to be determined) III. SAFEGUARD PREPARATION PLAN A. Target date for the Quality Enhancement Review (QER), at which time the PAD-stage ISDS would be prepared : December 22, 2004 * By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas Page 5 B. For simple projects that will not require a QER, the target date for preparing the PAD- stage ISDS C. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing 1 should be specified in the PAD-stage ISDS. The EA will be reviewed and approved by ASPEN for disclosure, and will be consulted and disclosed prior to appraisal. IV. APPROVALS Signed and submitted by: Task Team Leader: Francois Nankobogo Date: 11/29/ 2004 Approved by: Regional Safeguards Coordinator: Name: Thomas Walton Date: 11/29/2004 Comments Sector Manager: Name: Demba Ba Date: 11/29/2004 Comments 1 Re minder: The Bank’s Disclosure policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in-country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons. Page 6