THE WORLD BANK - ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP): FISCAL MANAGEMENT IMPROVEMENT PROJECT (P172352) The Republic of Costa Rica/Ministry of Finance Fiscal Management Improvement Project (P172352) DRAFT ENVIRONMENTAL and SOCIAL COMMITMENT PLAN (ESCP) [February 24, 2020] 1|Page THE WORLD BANK - ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP): FISCAL MANAGEMENT IMPROVEMENT PROJECT (P172352) ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Republic of Costa Rica will be implementing the Fiscal Management Improvement Project (the Project), with the involvement of the Ministry of Finance (MOF). The International Bank for Reconstruction and Development (the Bank) has agreed to provide financing for the Project. 2. The Republic of Costa Rica will implement material measures and actions so that the Project is implemented in accordance with the Environmental and Social Standards (ESSs). This Environmental and Social Commitment Plan (ESCP) sets out material measures and actions, any specific documents or plans, as well as the timing for each of these. 3. The Republic of Costa Rica will also comply with the provision of any other environmental and social (E&S) documents required under the ESSs and referred to in this ESCP, such as the Social Assessment (SA), the Environmental and Social Management Plan (ESMP), the Stakeholder Engagement Plan (SEP), the Indigenous Peoples Planning Framework (IPPF), Indigenous Peoples Plan (IPP) and the Labor Management Procedures (LMP), and the timelines specified in those E&S documents. These documents may be reviewed from time to time, during the Project implementation, with prior written agreement from the Bank. 4. The Republic of Costa Rica is responsible for compliance with all requirements of the ESCP even when implementation of specific measures and actions is conducted by the Ministry, agency or unit referenced in 1. above. 5. Implementation of the material measures and actions set out in this ESCP will be monitored and reported to the Bank by the Republic of Costa Rica as required by the ESCP and the conditions of the legal agreement, and the Bank will monitor and assess progress and completion of the material measures and actions throughout implementation of the Project. 6. As agreed by the Bank and the Republic of Costa Rica, this ESCP may be revised from time to time during Project implementation, to reflect adaptive management of Project changes and unforeseen circumstances or in response to assessment of Project performance conducted under the ESCP itself. In such circumstances, the Republic of Costa Rica, through the MOF, will agree to the changes with the Bank and will update the ESCP to reflect such changes. Agreement on changes to the ESCP will be documented through the exchange of letters signed between the Bank and the minister in charge of the MOF. The Republic of Costa Rica will promptly disclose the updated ESCP. 7. Where Project changes, unforeseen circumstances, or Project performance result in changes to the risks and impacts during Project implementation, the Republic of Costa Rica shall provide additional funds, if needed, to implement actions and measures to address such risks and impacts. 2|Page THE WORLD BANK - ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP): FISCAL MANAGEMENT IMPROVEMENT PROJECT (P172352) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY MONITORING AND REPORTING A REGULAR REPORTING Submit reports to the Bank every six MOF Prepare and submit to the Bank regular monitoring reports on the months after the end of each semester environmental, social, health and safety (ESHS) performance of the starting from the first semester after the Project, including but not limited to the implementation of the ESCP, Effective Date. status of preparation and implementation of E&S documents required under the ESCP, stakeholder engagement activities, and functioning of the grievance mechanism(s). B INCIDENTS AND ACCIDENTS Any incident or accident shall be notified to MOF Promptly notify the Bank of any incident or accident related to the the Bank within 48 hours after taking note Project which has, or is likely to have, a significant adverse effect on the of the incident or accident. Timing on the environment, the affected communities, the public or workers. Provide submission of any subsequent report sufficient detail regarding the incident or accident, indicating immediate would be specified by the Bank. measures taken or that are planned to be taken to address it, and any information provided by any contractor and supervising entity, as appropriate. Subsequently, as per the Bank’s request, prepare a report on the incident or accident and propose any measures to prevent its recurrence. The Borrower’s Guide to Respond to Environmental, Social and Occupational Health and Safety Incidents for World Bank Financed Projects, which further details how to address any incidents or accidents, will be included as an annex to the OM. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE An EHS and a Social Specialist will be hired MOF Establish and maintain a Project Coordination Unit (PCU) under the or appointment by the Effective Date and Ministry of Finance with qualified staff and resources to support specialists in these areas will be maintained management of ESHS risks, including one part time environmental, throughout project implementation. health and safety (EHS) specialist and one full time social specialist with qualifications and experience acceptable to the Bank, to support, inter alia, implementation of the E&S instruments referred to in this ESCP. 3|Page THE WORLD BANK - ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP): FISCAL MANAGEMENT IMPROVEMENT PROJECT (P172352) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY 1.2 SOCIAL ASSESSMENT A draft SA has been developed and MOF Update, consult, disclose, adopt, and implement the draft Social disclosed. The SA will be updated and Assessment (SA) that has been prepared for the Project, in a manner disclosed no later than three (3) months acceptable to the Bank, to include measures to ensure that individuals after the Effectiveness Date. Identified or groups who, because of their particular circumstances, are measures contained in the SA will be disadvantaged and vulnerable, are not prevented from accessing the implemented, as appropriate, throughout benefits and opportunities resulting from the Project. Project implementation. 1.3 ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN ESMP to be developed no later than three MOF Develop, disclose, adopt and implement an Environmental and Social (3) months after the Effectiveness Date or Management Plan (ESMP) for the Project, in a manner acceptable to the before any equipment installation or minor Bank, which shall include, inter alia: occupational health and safety physical works are carried out and to be (OHS) measures; waste management requirements including for any e- implemented throughout Project waste; management measures for any works sites; protocols for implementation. equipment installations and other minor physical works; and EHS requirements related to ongoing use of equipment. OM to be finalized prior to effectiveness and then updated within six (6) months to As described in the SA, any subproject or project activities or associated incorporate all the instruments developed facilities that would involve permanent or temporary physical or to that date. economic displacement, including in associated facilities, resulting from land acquisition or restrictions as specified under ESS5 shall not be supported. The ESMP, LMP as well as any additional social risk management requirements resulting from the SA and the SEP will be integrated into the Project’s Operational Manual (OM). 4|Page THE WORLD BANK - ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP): FISCAL MANAGEMENT IMPROVEMENT PROJECT (P172352) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY 1.4 MANAGEMENT OF CONTRACTORS MOF Incorporate the relevant aspects of the ESCP, including the relevant E&S Prior to the issuing of corresponding provisions of the ESMP and the Labor Management Procedures into the bidding documents. ESHS specifications of all applicable procurement documents. Thereafter ensure that contractors comply with the ESHS specifications MOF/PCU to supervise contractors of their respective contracts. throughout implementation of each contract. ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT PROCEDURES a) LMP to be developed no later than three MOF a) Develop, adopt, and implement Labor Management Procedures (3) months after the Effectiveness Date and (LMP) in a manner acceptable to the Bank and in accordance with ESS2. implemented throughout Project The LMP shall also be integrated as an annex to the OM. implementation. It will be reviewed annually and updated as required by MOF. b) MOF shall ensure that bidding documents for any goods, works and/or consultancy contracts include appropriate clauses to ensure that b) Prior to the issuing of corresponding working conditions, worker safety and worker rights are in line with the bidding documents. LMP ESS2 requirements. 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS Established within three (3) months after MOF Establish, maintain, and operate a grievance mechanism for Project the Effectiveness Date or before bidding workers, covering both direct as well as contracted workers, as further documents for any goods, works, and/or described in the LMP. consultancy contracts are issued. Once established, the grievance mechanism shall operate throughout Project implementation. 2.3 OCCUPATIONAL HEALTH AND SAFETY (OHS) MEASURES MOF Include appropriate OHS related measures in the project ESMP and Same timeframe as action 1.3 above- ensure their implementation. ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 5|Page THE WORLD BANK - ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP): FISCAL MANAGEMENT IMPROVEMENT PROJECT (P172352) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY 3.1 E-WASTE MANAGEMENT Same timeframe as for action 1.3 above. MOF Develop and implement measures to manage E-Waste as part of the project ESMP. Ensure their incorporation into relevant procurement Incorporation of relevant e-waste documents and ensure implementation by contractors. management provisions prior to the issuing of corresponding bidding documents. 3.2 RESOURCE EFFICIENCY & POLLUTION PREVENTION & MANAGEMENT Same timeframe as for action 1.3 above. MOF High fuel efficiency standards to be included in the Project´s ESMP and ESMP to be developed within three (3) pursued for any Project vehicles procured. months after the Effectiveness Date. Implementation of measures, as applicable, during the course of project Specific environmental measures – as well as training and capacity implementation. building requirements to ensure their implementation - shall be included in the ESMP to address potential negative impacts related to handling, use and management of hazardous substances, as applicable, during operations. ESS 4: COMMUNITY HEALTH AND SAFETY The ESS is not relevant. ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT The ESS is not relevant. ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES The ESS is not relevant. ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES 6|Page THE WORLD BANK - ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP): FISCAL MANAGEMENT IMPROVEMENT PROJECT (P172352) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY 7.1 INDIGENOUS PEOPLES PLANNING FRAMEWORK A draft IPPF has been prepared and will be MOF Update, disclose, adopt, and implement an Indigenous Peoples Planning disclosed prior to Board approval. The IPPF Framework (IPPF) in accordance with ESS7, in a manner acceptable to will be updated no later than three (3) the Bank. months after the Effectiveness Date. The IPPF will be implemented throughout Project implementation and subject to review in case necessary. 7.2 INDIGENOUS PEOPLES PLAN The IPP shall be submitted for the Bank’s MOF Prepare, consult, disclose, adopt, and implement an Indigenous Peoples approval prior to the carrying out of any Plan (IPP) in accordance with the IPPF prepared for the Project and activity that requires the preparation of an ESS7, and in a manner acceptable to the Bank. IPP. Once approved, implement the IPP throughout Project implementation. IPP will be developed within eight (8) months after Project Effectiveness Date and after meaningful consultations are carried out. 7.3 GRIEVANCE MECHANISM Throughout Project implementation. MOF Implement the adapted Project-level GRM described under the IPPF and the SEP. ESS 8: CULTURAL HERITAGE The ESS is not relevant ESS 9: FINANCIAL INTERMEDIARIES The ESS is not relevant ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PLAN PREPARATION AND A draft SEP has been developed and MOF IMPLEMENTATION disclosed. The SEP will be updated no later Update, disclose, consult, adopt, and implement the Project’s than three (3) months after the Stakeholder Engagement Plan (SEP), in a manner acceptable to Effectiveness Date and throughout Project the Bank. implementation, as needed. 10.2 PROJECT GRIEVANCE MECHANISM Throughout Project implementation. MOF Maintain and operate a Project grievance mechanism, as described in the SEP. CAPACITY SUPPORT (TRAINING) 7|Page THE WORLD BANK - ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP): FISCAL MANAGEMENT IMPROVEMENT PROJECT (P172352) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBILE ENTITY/AUTHORITY CS1 a) Training will be provided to the PCU staff on how to comply with the Throughout Project implementation. MOF ESSs during Project implementation, specifically on: stakeholder mapping and engagement, grievance mechanisms, LMP, and EHS risk management as applicable to the Project. b) Project workers will be provided with training and documentation on Throughout Project implementation MOF LMP including grievance mechanisms required by ESS2 and OHS measures. c) If applicable, should the project include specific activities to improve Throughout Project implementation MOF the Custom export and import procedures at borders, training and capacity building shall be given to customs officials on good practice EHS measures related to handling, use and management of hazardous substances. 8|Page