The World Bank RESTRUCTURING ISDS Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) Integrated Safeguards Data Sheet Restructuring Stage Restructuring Stage | Date ISDS Prepared/Updated: | Report No: ISDSR28432 Regional Vice President: Hafez M. H. Ghanem Country Director: Carolyn Turk Regional Director: Ede Jorge Ijjasz-Vasquez Practice Manager/Manager: Robin Mearns Task Team Leader(s): Murat Onur The World Bank RESTRUCTURING ISDS Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) . I. BASIC INFORMATION 1. BASIC PROJECT DATA Project ID Project Name Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 Task Team Leader(s) Country Murat Fatin Onur Sudan Approval Date Environmental Category 19-Jul-2016 Managing Unit Is this a Repeater project? SAFS2 PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 4.44 Total Financing 4.44 Financing Gap 0.00 DETAILS -NewFinEnh1 Non-World Bank Group Financing Trust Funds 4.44 State and Peace Building Fund 4.44 2. PROJECT INFORMATION The World Bank RESTRUCTURING ISDS Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) Current Project Development Objective To strengthen the capacity of local stakeholders including state authorities, displaced persons, and vulnerable host communities, to plan and implement improved livelihoods and natural resource management practices. . 3. PROJECT DESCRIPTION The Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) Project (SLDPII) was approved in March 2016 and became effective in December 2016. The project is financed by the State and Peacebuilding Fund (SPF) in an amount of US$4,435,000. US$150,000 is Bank-Executed on Behalf of the Recipient (BEBR), corresponding to grant TF0A3003, and the remaining US$4,285,000 is recipient-executed (RE), corresponding to grant TF0A3002. The Project Development Objective (PDO) is to strengthen the capacity of local stakeholders, including state authorities, displaced persons and vulnerable host communities, to plan and implement improved livelihoods and natural resource management practices. To achieve the Project PDO, the following are four interlinked components: (i) Component 1: Development of Local Government Structures and Capacities; (ii) Component 2: Analytics and Technical Assistance; (iii) Component 3: Community Small Works Support; and (iv) Component 4: Economic Livelihoods and Benefit Trans-passing. The beneficiaries of the original project are IDPs and host communities (with particular provision for women and youth), local authorities responsible for the promotion of livelihood in vulnerable communities and other organizations active in delivering public services. The project seeks to employ the livelihood grant mechanisms as an ex-post economic incentive to mobilize communities towards effective development planning and implementation of small works. Communities are organized to select beneficiaries, identify livelihood priorities, vet their proposals through technical experts, and receive training in their chosen area of income generation. Also encompassed in component 4 is a participatory M&E system, which will employ community leaders to be the first line of data collection for the project. The project is performing well and progress towards achieving the PDO has been rated satisfactory in the implementation support mission (ISM) conducted in November 2019. There are no unresolved financial, procurement or safeguards issues. The disbursement rate for the project is 99 percent as of December 25, 2019. There is continued commitment from the government to support the project, including parallel financing. The PDO continues to be relevant, the largest indication of which is that the priorities identified by target communities to date have been met within the design of the project. Additional Financing Financing has been allocated to the Sudan Multi-Partner Fund (SMPF) in support of Youth Employment for PSD, Peacebuilding and Social Cohesion. These priorities under pillar 3 of the SMPF reflect Government priorities during the transition period following the revolution. SLDPII is a well-performing project that has a ready implementation structure set up in Khartoum and Kassala states. The project aligns well with SMPF and Government objectives on youth employment, peacebuilding and social cohesion; has established strategic partnerships in these areas; and has a positive track record of showing rapid results on the ground. It has therefore been agreed with the Recipient and Donor to use SLDPII as a platform to implement SMPFs support on youth employment. The World Bank RESTRUCTURING ISDS Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) An AF grant in the amount of US$500,000 will be processed to finance additional livelihoods activities with a focus on promoting youth entrepreneurship. Through partnerships with incubators, universities, social enterprises, and business associations, outreach will be conducted to identify young entrepreneurs with business ideas/proposals for financing from the project (through the project’s livelihood sub-grants). Examples of the potential sectors that would be supported include ICT, waste recycling, restocking, leather manufacturing and small shops/trading. Beneficiaries will be selected for project support through a standardized process described in the Project Operations Manual (POM), based on (i) meeting basic eligibility requirements (age, financing limit, etc.); (ii) feasibility of the business proposal; and (iii) potential for secondary job creation. Women will make up at least 50 percent of the selected beneficiaries through specific targeting, and a special budget provision made for proposals from vulnerable groups (displaced, disabled, out of school, etc.). The project will contract implementing partners to support development of the business proposals and provide capacity building and follow-up support. Following selection, the implementing partners will be tasked with incubating the selected business ideas (i.e. business development support), providing technical and entrepreneurship training, and readying the businesses for financing. The project will provide the beneficiaries with start-up financing (20-30 percent of the total cost of the proposal) in the form of SLDP livelihoods sub-grants. The project and implementing partners will also provide post- finance support to beneficiaries and monitoring of businesses. Each beneficiary will have the option to be linked with micro-finance institutions (MFIs) with which the project will sign memorandums of understanding with to apply for additional financing beyond the SLDPII sub-grant limit. Beneficiaries will remain as IDPs and host communities (including youth and women) as per the original project paper. The AF will expand the project to focus specifically on youth in Kassala and Khartoum states beyond the 10 communities identified in the project paper. New activities described above will be included in components 1 and 4 of the project. Within component 1, the cost related to sub-component project management will increase to cover Project Coordination Unit (PCU) salaries during implementation of the AF grant. Within component 4, a new sub-component will be added entitled ‘Support to Youth Entrepreneurship.’ The sub-component will cover (i) the provision of livelihoods sub-grants to eligible youth to be used for financing viable business plans to cover initial investments or business expansion and (ii) capacity building support to eligible youth to develop business proposals, improve technical capacity and to provide follow-up support. The POM will be updated (no later than 30 days after the effectiveness of the additional financing) to detail the implementation steps and costs of the activity, including selection and eligibility criteria. The safeguards section of the POM will include sub-project templates for the most frequent types of business plans. . 4. PROJECT LOCATION AND SALIENT PHYSICAL CHARACTERISTICS RELEVANT TO THE SAFEGUARD ANALYSIS (IF KNOWN) Beneficiaries will remain as IDPs and host communities (including youth and women) as per the original project paper. The Additional Financing will expand the project to focus specifically on youth in Kassala and Khartoum states beyond the 10 communities identified in the parent project. 5. ENVIRONMENTAL AND SOCIAL SAFEGUARDS SPECIALISTS ON THE TEAM The World Bank RESTRUCTURING ISDS Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) Tracy Hart, Environmental Specialist Simon Sottsas, Social Specialist Yalemzewud Simachew Tiruneh, Social Specialist Samuel Lule Demsash, Social Specialist SAFEGUARD_TABLE 6. SAFEGUARD POLICIES TRIGGERED Safeguard Policies Triggered Explanation The main focus of the project lies on studies, capacity building, and livelihood support initiatives in IDP settlements and host communities in Kassala and Khartoum States. These activities have been addressed by the Environmental and Social Management Framework (ESMF) of the project. The project has completed the small works activities and the Additional Financing (AF) will not finance any additional small works. Considering the core activities of SLDPII will not change, the team recognized OP4.01 as triggered, and proposes the E&S safeguards category B for the project. Since the Environmental Assessment (OP) (BP 4.01) Yes scope and nature of the activities and the specific sites for implementing them are not yet known, the specific instrument proposed for analyzing potential environmental and social risks remains the ESMF. The ESMF includes guidance and procedures for reviewing any environmental and social management impacts applicable to the youth livelihood activities delineated for the AF. For the management of impacts caused by subproject activities, the use of a simplified, checklist-type ESMP is envisaged, which ensures that no safeguards policies are applicable other than OP 4.01 and OP 4.12. The AF project will not involve conversion, or degradation, of critical or non-critical natural habitats, or protected areas, as it will take place Natural Habitats (OP) (BP 4.04) No within existing communities and established land use patterns. The sub-project ESMP checklist screens to prevent funding of applications which would trigger OP 4.04. The AF project activities are not expected to affect existing natural forest, have impacts on the health Forests (OP) (BP 4.36) No and quality of forests, or affect the rights and welfare of people and their level of dependence upon or interaction with forests.The sub-project The World Bank RESTRUCTURING ISDS Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) ESMP checklist screens to prevent funding of applications which would trigger OP 4.36. While some agricultural livelihood activities may be supported by the AF, pesticides will not be financed, or their use supported. The Pest Management (OP 4.09) No implementation of parent project experience supports this, as the communities do not traditionally use chemicals in their farming activities. The AF is not expected to adversely affect physical cultural resources in target communities. The mitigation measures identified through the ESMF on a cautionary basis will be maintained for chance Physical Cultural Resources (OP) (BP 4.11) No finds of physical cultural resources. These measures would not contravene either the borrower’s national legislation, or its obligations under relevant international environmental treaties and agreements. No stakeholders qualifying as indigenous peoples Indigenous Peoples (OP) (BP 4.10) No under this policy are present in the project area. The AF will only finance additional livelihoods activities through component 4 of the parent project, with a focus on youth entrepreneurship. The AF will screen out/not finance activities that might require involuntary land acquisition. With Involuntary Resettlement (OP) (BP 4.12) Yes consideration for the modest financing available through the project and the profile of beneficiaries to be targeted, proposals are expected to be limited in scale/scope and not involve involuntary land acquisition. No dams will be built, rehabilitated, or otherwise affected over the course of this AF. No physical components of the project will depend on the Safety of Dams (OP) (BP 4.37) No functioning of existing large dams.The sub-project ESMP checklist screens to prevent funding of applications which would trigger OP 4.37. Projects on International Waterways (OP) The AF will not affect any international waterways No (BP 7.50) or groundwater bodies. Projects in Disputed Areas (OP) (BP 7.60) No The project is not located in a disputed area. KEY_POLICY_TABLE II. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT A. SUMMARY OF KEY SAFEGUARD ISSUES The World Bank RESTRUCTURING ISDS Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) 1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts. Like the parent project, the AF will remain Category B and no new policies will be triggered. Since the AF will cover additional livelihoods activities through component 4 of the parent project, with a focus on youth entrepreneurship and with no new land acquisition requirements, the same risk factors remain relevant. For the parent project, the Environmental and Social Management Framework (ESMF) and Resettlement Policy Framework (RPF) were prepared, reviewed and cleared by the Bank, and disclosed locally in Sudan and on the World Bank external website. A Grievance Redress Mechanism (GRM) protocol has been added during parent project implementation. The project is geared towards building positive social and environmental behaviors through intense community mobilization, research, a community environmental action planning (CEAP) process, and awareness campaigns. The CEAP process leads to two deliverables: (i) an overall long-term environmental plan for the communities that considers a timeframe beyond SLDP’s project cycle and (ii) specific small works plans for implementation within SLDP. The Project Operations Manual (POM) includes a note on safeguards that details the screening and approval process for both the small works projects as well as the livelihood business plan implementation. For both, it is the responsibility of the PCU/SPU to immediately screen all the activities per the project’s ESMF and RPF. All necessary safeguards instruments resulting from the screening exercise should be submitted to the World Bank for non- objection. The sub-project will not be authorized, under Bank policy, without receiving confirmation from the Task Team that the proposed sub-project has met all safeguards prerequisites. Apart from this, the project will create awareness and intervene in safeguard capacity enhancement activities that enable to capacitance the future project implementing bodies, relevant stakeholders and local communities to consider the possible environmental and social issues. There have been no major environmental or social safeguards issues reported during implementation of the parent project. The Project Coordination Unit (PCU) and State Project Unit (SPU) will continue ensuring compliance on safeguards issues. The Project Operations Manual (POM) 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area. There are no new or additional potential impacts in relation to the proposed project activities set out under the AF. 3. Describe any potential alternatives (if relevant) considered to help avoid or minimize adverse impacts. There are no changes to physical characteristics of the parent project that would necessitate development of new alternatives. 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 client for the parent project produced and implemented, to the satisfaction of the Bank, an ESMF and RPF with respective management instruments and mechanisms. The Ministry of Finance, Economy and Labor (MFEL) of the State Government of Kassala is chiefly responsible for project implementation including the safeguards instruments: (i) MFEL is responsible for the coordination of overall development planning in the State, including issues related to environmental sustainability and the management of natural resources. MFEL has limited capacity to directly intervene on the implementation or supervision of activities in these areas. This competence rests with several The World Bank RESTRUCTURING ISDS Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) sectoral institutions responsible for aspects of sustainability, as, among others, agriculture, land uses, water resources management, irrigation, forestry and energy. (ii) The institutional capacity to manage environmental and social safeguards and implementation of EA recommendations is still limited. To implement the project in a socially acceptable and environmentally sound manner, it is required to further strengthen the implementing institutions capacity in the application of the EA recommendations and other environmental/social safeguard instrument during project implementation period. The AF project will continue to ensure responsibilities of implementing and monitoring the environmental and social safeguard aspects of the Project and create awareness among communities and relevant stakeholders on sound environmental management practices and implementation of the ESMF recommendations. (iii) The project will continue to ensure relevant safeguard expertise within the implementation team. The project will ensure due implementation the provisions of safeguards instruments. Moreover, the PCU/SPU will conduct regular supervision, prepare progress reports, and maintain a focal point on E&S safeguards issues. The PCU/SPU and other line ministries, conduct regular supervision, prepare progress reports, and be the focal person on environmental and social safeguard issues. 5. Identify the key stakeholders and describe the mechanism for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. Key stakeholders include the Ministry of Finance and Economic Planning (MoFEP); MFEL; other line ministries; youth and local communities in target locations; business incubators, technical assistance providers, training providers, NGOs that would be engaged as implementing partners, etc. Consultations will be held to facilitate stakeholder involvement and awareness at all levels of project implementation and to ensure that the information required for decision making is available to all interested parties. A few of the mechanisms established by SLDPII to ensure effective consultation and disclosure of activities and policies are the following: Technical Working Group: A project Technical Working Group (TWG) has been established in Kassala during phase SLDPI and continued during SLDPII. TWG is chaired by the State Ministry of Finance. Apart from frequent ad hoc meetings and consultations, this is the primary mechanism for discussing all project issues, including safeguards considerations in Kassala State. TWG includes representatives of the state ministries participating in the project the Commissioners of localities targeted by SLDP and SLDPII. TWG will meet at least on a quarterly basis or more frequently as required by the project during the AF. Federal Advisory Board (FAB): Similar steering committee as the TWG at the Federal Level in Khartoum, dealing with larger scale considerations such as policies and overall government contribution to the project. Livelihoods Forum: This is a technical forum established by the first phase project which gathers all development partners in Kassala state that support livelihoods interventions for communities in Kassala. The range of subjects taken up by the forum includes social and environmental considerations of development partner activities and serves as a consultation body to learn from experiences of others and coordinate efforts. Youth in Kassala and Khartoum are the key PAPs for which consultation and disclosure affects. By design, the project practices frequent consultation and disclosure which is not limited to only environmental and social considerations. Further measures are taken during implementation to also achieve these over-arching objectives. Safeguards Specialist in the implementing agency will maintain compliance with safeguards instruments documents, this ensures The World Bank RESTRUCTURING ISDS Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) that PAPs are reasonably sensitized, informed, and otherwise protected from adverse impacts of project implementation. DISCLOSURE_TABLE B. DISCLOSURE REQUIREMENTS ENV_TABLE Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank Date of submission for disclosure 09-Feb-2016 31-Mar-2016 For Category ‘A’ projects, date of distributing the Executive Summary of the EA to the Executive Directors “In country� Disclosure RESETTLE_TABLE Resettlement Action Plan/Framework Policy Process Date of receipt by the Bank Date of submission for disclosure 14-Feb-2016 31-Mar-2016 “In country� Disclosure COMPLIANCE_TABLE C. COMPLIANCE MONITORING INDICATORS AT THE CORPORATE LEVEL EA_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Practice Manager (PM) review Yes and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes IR_TABLE OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework Yes (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Practice Manager Yes review the plan? The World Bank RESTRUCTURING ISDS Sustainable Livelihoods for Displaced and Vulnerable Communities in Eastern Sudan: Phase 2 (P158066) PDI_TABLE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for Yes disclosure? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups Yes and local NGOs? ALL_TABLE All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been Yes prepared for the implementation of measures related to safeguard policies? Have costs related to safeguard policy measures been included in the project Yes cost? Does the Monitoring and Evaluation system of the project include the monitoring Yes of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower Yes and the same been adequately reflected in the project legal documents? III. APPROVALS Task Team Leader(s) Murat Fatin Onur Approved By Safeguards Advisor Practice Manager/Manager .