The World Bank Healing Land For the Future (P172992) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 01/15/2020 | Report No: ESRSC01029 Jan 15, 2020 Page 1 of 12 The World Bank Healing Land For the Future (P172992) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Kosovo EUROPE AND CENTRAL ASIA P172992 Project Name Healing Land For the Future Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Environment, Natural Investment Project 4/15/2020 6/25/2020 Resources & the Blue Financing Economy Borrower(s) Implementing Agency(ies) KOSOVO MINISTRY OF Ministry of Environment and FINANCE Spatial Planning Proposed Development Objective(s) Public Disclosure The proposed development objective is to improve the country’s capacity for managing land contamination and demonstrate a sustainable risk-based approach to remediation and redevelopment of selected contaminated sites. Financing (in USD Million) Amount Total Project Cost 25.00 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 C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] Kosovo, as one of the youngest countries on the continent, has substantial development potential, yet also faces significant challenges. Kosovo is rich with many mineral resources including coal, lead, zinc, chromium, and silver; however, extracting these resources has generated environmental and health risks and impacts. The World Bank’s recent report found that the estimated number of contaminated sites in Kosovo requiring remediation is about 200, thus increasing pressure on land availability for development. The government has recognized that redevelopment of contaminated land, especially brownfields will generate significant economic value and environmental and social benefits. Jan 15, 2020 Page 2 of 12 The World Bank Healing Land For the Future (P172992) The Government in Kosovo has been making efforts to address environment and climate change issues, however further efforts are required. The challenges in the environment sector translate into constraints in the management of contaminated sites in Kosovo, including policy, information, institutional, technical and financing constraints. Given these constraints, a phased approach to remediation and redevelopment is needed. The proposed project aims to support the country in developing and implementing a long-term action plan for contaminated land management and redevelopment in Kosovo. The proposed project aligns well with the World Bank’s Country Partnership Framework (CPF) for Kosovo. The project is in line with the third focal area and two of its three objectives of the CPF (2017-2021), namely “Promoting Reliable Energy and Stewardship of the Environment – improve management of natrual resource, and address environment contamination and enhance energy efficiency and renewable energy”, therefore, also contributing to the Sustainable Development Goals (SDGs) 6,7, 8, 9, 12 and 13 . It is acknowledged in the CPF that further actions are needed for environmental sustainability, which include addressing a large amount of contaminated sites that place a high environmental and health burden on the population and causes large areas of degraded land to be out of productive use. The proposed project is also closely aligned with the national aspiration on EU accession and is designed to help Kosovo develop its contaminated land management regime to a state of the art in policies and practices. Experience from the previous CPF (2012-16) shows that the World Bank Group program was effective in delivering improved environmental management. It is envisaged that the proposed project will provide support to the government in addressing the key constraints it Public Disclosure has faced over the years in managing contaminated land. It will do so through: a) enabling activities at both the national and local levels for developing the necessary policy / regulatory and institutional framework, building capacity , addressing data / information gaps, and developing a long-term action plan for contaminated land remediation and redevelopment in the country, and b) investments in select sites to demonstrate international good practices for contaminated land remediation and redevelopment, which will also serve to set up a system that can be replicated for other sites. SRBLM will be the principal approach to be promoted through the proposed project. The theory of change is separately attached to the PCN package. The project consists of three components described below. It is expected that the project will be the starting point of a longer term program for addressing land contamination legacy in Kosovo. It will improve the country’s policy / legal framework and national planning and provide evidence of sustainable benefits of contaminated land management. Subsequent phases for scaling-up are anticipated either as additional financing or as a new project (funded by the Bank or/and another partner). D. Environmental and Social Overview D.1. Project location(s) and salient characteristics relevant to the ES assessment [geographic, environmental, social] Kosovo is bordering with Albania, Macedonia, Serbia, and Montenegro. The Prokletije and Šar Mountains, are the most biodiverse regions of Kosovo and is characterized by a wide array of ecosystems and habitats. The National Forest Inventory Report of the FAO mentions that the total forest area is 464,800 ha (40 percent of total land area). The country's biodiversity is conserved in two national parks and hundreds of other protected areas of different Jan 15, 2020 Page 3 of 12 The World Bank Healing Land For the Future (P172992) categories. The remote and forested regions are primarily inhabited by important species like the brown bear, grey wolf, lynx and golden eagle. Kosovo is rich in mineral mainly coal, lead, zinc, chromium and silver. Kosovo has four main water basins: the Drini i Bardhe, Ibri, Lepeneci, and Morava e Binçës. All rivers are classified as being polluted with unacceptable levels of biological oxygen demand and lack of dissolved oxygen due to the lack of operating wastewater treatment systems. Ambient air quality is particularly bad in Pristina, Obiliq, Drenas, and Mitrovica. The principal pollutants are particulate matter, sulfur dioxide (SO2), nitrogen oxides NO and NO2 (NOx), ozone (O3), lead (Pb), carbon dioxide (CO2), and dioxin. The main sources are energy and mining, including the two coal-fired power plants of the Kosovo Energy Corporation (KEK) and its coal-mining area, wood and lignite for household heating, industrial complexes, such as Mitrovica Industrial Park (Trepca), nickel mining and production in Drenas/Gllogovc (Ferronikeli), and the cement factory in Hani Elezi (Sharrcem), public district heating companies (in Pristina, Gjakova, and Mitrovica), transport, landfills of urban and industrial wastes (with varying local impacts). The project will address the historical pollution related to the mineral resources extraction industry. Kosovo Environmental Protection Agency has identified about 110 sites as the most sensitive points, 26 of which have been identified as potential hotspots like in the Municipalities of Obiliq - KEK activities, Gllogoc - Ferronikeli activities, hot- spots in Kishnicë, Artanë, Hani i Elezit, etc. At the moment the only foreseen project activities are related to KEK whose 100ha overburden area consists of surface deposits removed for open cast access to lignite. There are no environmental sensitivities in the area. It adjoins a covered ash dump and a future solar park. The land acquisition, restriction on land use and involuntary resettlement are not relevant to KEK. At this stage it cannot be determined whether the land acquisition standard will apply for the other activities of the investment component. Given the Public Disclosure assessment during the scoping mission, it is expected that the project will not finance remediation sites for which resettlement will be needed in order to avoid land acquisition. The resettlement laws of Kosovo mostly differ from the requirements of the ESS5 especially in relation to treatment and involvement of the illegal constructions and squatters but the practice to comply with the WB safeguards standards have been positive. The expertise for the remediation could be difficult to be found in Kosovo, but the labor and other non-skilled works will most probably be sub-contracted locally. Thus, labor influx is not expected. Labor related laws in Kosovo mostly comply with the requirements of ESS2 but there will be a need for workers related GRM and for close oversight of the adherence to ESS2 standards by contractors. Issues to be dealt with during the works will be delineation of the work activities so they do not interfere with the nearby communities, given the works will be to clean the hazardous materials disposed over the decades. Attention will be given to the involvement of the Stakeholders as this aspect is important in the cleanup and restoration projects. The Ministry of Environment and Spatial Planning has some experience through the Kosovo Cleanup Project. D. 2. Borrower’s Institutional Capacity The MESP will be responsible for the implementation of the project. MESP is also the implementing agency for the preparation of Fostering and Leveraging Opportunities for Water Security project funded by the Bank. MESP is responsible for environmental protection and management and setting the country’s environmental policy. MESP consists of an environment department for nature protection, waste management, air protection, industrial issues and a water department. The environmental inspectorate is under the Minister of Environment and is responsible for inspection activities. Kosovo Environmental Protection Agency (KEPA) under MESP is responsible for professional, supportive, scientific, and research tasks including environmental monitoring, environmental information management, and research. KEPA has administrative responsibilities for issuing opinions on environmental impact assessments (EIAs) and on environmental consents for construction permits, issuing opinions on nature protection Jan 15, 2020 Page 4 of 12 The World Bank Healing Land For the Future (P172992) areas, and organizing the Environmental Protection Information System. KEPA has three environmental directorates: for monitoring, information systems, and programs and reports. The MESP has experience in environmental risk management including stakeholder engagement of infrastructure development projects, through Clean-up and Reclamation Project. However, MESP’s introduction to the new ESF is through its staff participation in one day awareness training after ESF rollout in October 2018. The MESP has experience with OP 4.12, under Clean-up and Reclamation Project and Sibovc Field resettlement project. The department for resettlement directly reporting to Minister dealt with the Hade village resettlement to the new Shkabaj residence. In addition, the Ministry also managed small land acquisition impacts that were addressed in compliance with social safeguards by KEK, through (Clean-up and Reclamation Project). While the Ministry has previous experience in the World Bank Safeguards Policy OP 4.12, it has no capacity to handle the issues relating to the labor and working conditions. Under the recently implemented highway projects, this capacity has been built in the private sector (construction companies). Kosovo’s local companies learnt and benefited from the good industrial international practices introduced by international companies working in the country. Thus, local capacity is created for relatively complex civil engineering works, which could be sub-contracted by specialized firms to deal with, and clean historically polluted sites. In addition, capacity has also been built in private sector/industries to manage project related traffic in proximity to inhabited areas. The environment and social assessment will look at relevant social regulatory environment and gaps in current practice on related social issues. At present the MESP’s strongest experience is in resettlement practices only. While labor laws generally comply with ILO, the Ministry has limited capacity to do proper oversight. Also, as the mandate for approval and oversight of EIA’s lies with a different entity, Public Disclosure the Ministry has limited experience with managing multiple stakeholders. MESP will cooperate with various municipalities during the implementation of the project. Most of the municipalities have environmental and community officials who are well aware of the existing environmental pollution and social issues of the respective municipality. For the identified ash dump and overburden site in Obiliq, MESP will work with the KEK authority. KEK has experience in working with World Bank funded Cleanup and Land Reclamation Project. However, ESF is completely new to KEK. Both KEK and MESP will be provided training during the project preparation. The PIUs for the project both at KEK and MESP will have dedicated environment and social consultants who will also be supported by safeguards experts in the design and supervision consultant's team. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Substantial Environmental Risk Rating Substantial The proposed project is expected to bring a positive paradigm shift in the country’s environmental management by enhancing the capacity of managing land contamination and demonstrating sustainable risk-based cleanup and redevelopment at selected contaminated sites. Although there is a scope for large engagement in remediation activities, the project will not support any investments and Technical Assistance of high safeguard risks. The naturally sensitive ecological areas will be avoided. The redevelopment and rehabilitation polluted sites from historical contamination and primary field data collection may pose health risks to the workers and community from the exposure to heavy metals, hazardous waste handling and management. Construction related activities may increase Jan 15, 2020 Page 5 of 12 The World Bank Healing Land For the Future (P172992) the noise and dust pollution from traffic movement and solid and construction wastes. The potential environmental impacts could be moderate to substantial scale but are predictable and reversible and can be avoided if appropriate precautionary measures are adopted. According to the Kosovo Country Environmental Analysis (2013), the role of the judiciary in environmental management is still weak. Once the capacity of MESP will be enhanced by firsthand experience through this project, MESP will move forward with higher risk sites investment. Social Risk Rating Moderate The proposed social risk rating for the project, at the concept stage is Moderate. In the project concept stage the activities that can be foreseen are those related to KEK. While there will be no land acquisition in KEK site related activities, there is a possibility that the project will finance activities through the investment component, that would lead to land acquisition. It is highly unlikely that potential land acquisition will lead to resettlement. This is based on observation made by the Bank team during the site visits (in Hani Elezit and Artana mining, KEK site) and the meetings with the teams from the respective institutions during the scoping mission. The resettlement department of the MESP, who will be in charge with the land acquisition process is familiar with the Bank standards on land acquisition. It is highly unlikely that a large scale physical displacement or land acquisition occurs under the project. Given the unpredictability of the impacts, the project during the preparation will prepare a Resettlement Policy Framework (RPF) that will guide when the project cause physical or economic displacement, including when negative impacts occurs on livelihoods. The MESP as implementing agency is not familiar with the Labor and Working condition standards but on the other side the construction industry in last 10 years grew capacity in applying good international practices in occupational health and safety standards, given that they worked as subcontractors of large experienced international companies. The smaller challenge to address will be protecting communities from the project related traffic and the complex one will be protecting communities from the historical land contamination. Public Disclosure B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered 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: This standard is relevant to the project. The proposed activities may include physical interventions such as establishment of park sites, introduction of solar power to showcase initiatives of a transformation from coal to renewable energy etc. and technical assistance such as feasibility studies for the improvement of hazardous waste management, remediation of mine tailings, etc. which may have potential impacts from the mismanagement of hazardous materials handling and disposal and construction related activities during the rehabilitation work and feasibility study. Air, water and noise pollution needs to be mitigated during pre-construction and construction phase. Chances of accident may increase due to uncontrolled increased traffic movement etc. A report on 28 Environmental Hotspots in Kosovo was published in 2011. KEPA/MESP has identified an additional 14 hotspots, primarily sites where hazardous wastes are being stored in some way or another. The updated list is yet to be published. KEK site has been confirmed for investment under the project. The other site selection and possible interventions will be confirmed during project implementation or at the later part of preparation. An Environmental and Social Impact Assessment (ESIA) will be conducted for the engagement at the KEK site and will be disclosed and consulted by appraisal. KEK Site Remediation/Redevelopment Plan, including site investigation and risk assessment; and the technical specifications for procurement will be developed during project preparation. The KEK related activities will not cause land acquisition and thus no site-specific RAP will be needed for this site. The Jan 15, 2020 Page 6 of 12 The World Bank Healing Land For the Future (P172992) project will prepare Labor Management Plan (LMP) as well as mitigation measures for the community level exposures from the KEK activities as part of the ESIA. KEK site specific environmental and social management plans (ESMPs) will be prepared as part of the ESIA. Since the types of remediation techniques and engagement approach including TA have not been planned and confirmed yet, an Environmental and Social Management Framework (ESMF) will be prepared for the overall project, including due diligence preparation for other sites as well as the activities financed as TA. The ESMF will include the guidelines for screening, defining the type of instruments to be developed for the other sites’ remediation and rehabilitation and will describe the procedures and implementation and institutional responsibilities for the preparation of ESIA and ESMPs in line with the ESF. Pollutant, activity and scope of TA specific ESIA Terms of Reference (ToR) will be included in the ESMF. Associated facilities will meet the requirement of the ESSs to the extent MESP has control over such facilities. The requirement of ESF for the associated facility will be included in the ESIA and ESMF. The eligibility of becoming associated facilities relevant to the project, the possible impact of the associated facilities in different phases, the mitigation measures will be included in the ESIA and ESMF. The consultation plan with the relevant associated facility stakeholders will be included in the SEP. Given that at the project concept stage , it cannot be clearly determined whether the other potential remediation activities to be financed will cause or require any land acquisition, the counterparts will prepare a Resettlement Policy Framework (RPF) for potential land acquisition. LMP framework will be prepared as part of the ESMF to provide guidance on the enforcement of compliance with the standard on Labor and Working Conditions as well as on addressing potential impacts on the communities under ESMP. In addition, as part of social assessment within the Public Disclosure ESMF a gender assessment including potential for GBV will be carried and respective ESMP will address in more detail measures to address GBV based risks.The ESMPs will also address the inclusion of the potential vulnerable groups, identified through Stakeholder Engagement Plan (SEP). Areas where “Use of Borrower Framework” is being considered: The project will comply with the Bank’s new Environmental and Social Framework and its Environmental and Social Standards and will not use the Borrower framework in whole or in part for this project. The Project, however, is subject to the national and municipality permits and clearances as per the existing legal- institutional framework. These permits and clearances will be obtained prior to approval, and the exact requirements to obtain such permits and clearances will be recorded in the ESCP. ESS10 Stakeholder Engagement and Information Disclosure This standard is relevant to the project. An active stakeholder engagement is important to inform local communities of potential risks not only during but also after the project. This is because not all health risks can be fully remediated under the project, and local population will need to cope with residual risks. The project should not only establish a mechanism to inform local population of risks directly related to the project but also use the mechanism to help local communities and municipalities develop a medium/ long term strategy to cope with lasting risks. Stakeholder Jan 15, 2020 Page 7 of 12 The World Bank Healing Land For the Future (P172992) engagement is also important to ensure a meaningful participation of local population in the design of land use post remediation works so that the project can generate broad benefits to local communities. In addition, the project should engage with national stakeholders including relevant government agencies, national Civil Society Organizations (CSOs) and Non-Governmental Organizations (NGOs), and so on. The project should identify all relevant stakeholders and start engaging with them immediately, so that their inputs can be incorporated in the project design. As Stakeholder Engagement Framework (SEF) will be preparted during prparation to identify directly affected and other interested groups and will respectively propose strategies for their involvement. In addition, the vulnerable and the disadvantaged groups will be identified with the screening criteria provided in the ESMF, and separate means of communication and engagement will be applied appropriate for different stakeholder groups including but not limited to vulnerable and the disadvantaged groups. I.e. these would be members of the ethnic minority community RAE (Roma Ashkaly and Egyptians) and the families with no income stream, the families that survive from the remittances and provision of labor in market. The SEF for the entire project and the SEP for KEK mining sub-project should be developed before Appraisal to guide stakeholder engagement during implementation 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 This standard is relevant to the project. Project workers would include direct workers and contracted workers most likely but also less likely the project activities could incorporate project workers that fall under category of primary supply workers. The Kosovo Labor Laws specify the need for the contracts, working hours, principles of Public Disclosure nondiscrimination and rights to associate into unions. As per RIinvest (prominent Kosovo based think tank) about 19% of workers do not have a contract with 82% of them being in private sector. About 81% of all employees fall under one or more of the following categories i) they work without a contract or ii) they are paid more than the contract wage as employers under-report the wage in the contract to reduce their contribution to pension insurance; or iii) the wage paid is without pension and social insurance. These risks will be managed through Procedures. Other related risks are related to Occupational Health and Safety (OHS) of workers hired by the Contactor (“Contracted Worker”) and potentially sub-contractors. Most probably specialized sophisticated work and know how on addressing contaminated lands will be carried out by foreign experts whereby non skilled labor will be hired from the localities. Given the scale of the investment, no influx of external labor is expected but also labor influx of local workers would be expected. OHS issues are also relevant to the potential investment in Hani I Elezit municipality where a Contractor would be hired to remediate the area affected by dumping of asbestos. The Labor Management Procedures (LMP) has to be prepared before Appraisal which will describe the types and scale of Project Workers likely to be hired under the project, address the labor risks envisaged for them, set out Grievance Mechanisms for categories of project workers, and define other principles on the employment of Contracted Workers, so that all requirements of the ESS2 are adequately reflected in tender documents. ESS3 Resource Efficiency and Pollution Prevention and Management The standard is relevant to the project. The risks and impacts of the project during preparation and implementation will be managed by adopting a systematic ESIA and ESMF approach. The ESIA and ESMF will be a crucial input to the decision-making processes in the Project to avoid and minimize project’s environmental risks and impacts and Jan 15, 2020 Page 8 of 12 The World Bank Healing Land For the Future (P172992) maximize efficient resource management. The project activities will prioritize resource efficient technologies and pollution management where feasible. Some of the examples of project activities are presented below: With respect to Resource Efficiency: The remediation plan and rehabilitation activities will introduce resource efficient technology. For example, the revegetation on the over-burden will ensure usage of the barren soil. Until now the ash dump is lying without any use, the project will use the site for setting up photovoltaic energy generation. With respect to Pollution Management: The project is a remediation project which will include risk assessment, investments, technical assistance for future engagement and policy level intervention and capacity building for pollution management. For example: the revegetation on over-burden will reduce the dust pollution and develop a park site and make efficient usage of the land. Currently, there is no systematic procedure of hazardous waste management or any designated site for disposal of such wastes. The indicative shortlist under component 2 shows the possibility of construction of a storage facility meeting European Union standards at a selected contaminated site to manage certain hazardous wastes such as removed asbestos (from old buildings; and excavated contaminated soil if needed). The project will also look into the possibility of hazardous waste management and will link it with the ongoing World Bank Energy Efficiency project or other activities where asbestos waste is present. Overall the project will go for holistic planning for future large engagement for better pollution management. Until the proper system is in place, the project will ensure disposal of hazardous wastes in a secured landfill and will set place appropriate monitoring system around the site for soil, groundwater and near by surface water monitoring. With respect to Carbon Emissions: The photovoltaic energy generation on top of the ash dump is a good indication of Kosovo’s change in attitude from coal to renewable energy. The ESIA will look into alternative technologies for reducing carbon emissions from proposed project activities. Public Disclosure Since the project is targeted to engage in the policy level intervention, it is in an advantageous position to incorporate the findings of the remediation plan into the policy level. Thus, the project will play a key role to enhance the policy from the field experience and will play a key role for environmental enhancement. ESS4 Community Health and Safety The standard is relevant to the project. Potential risks and impacts on local communities will include traffic accidents and physical injuries near construction sites, and the potential mismanagement of hazardous materials during remediation works and feasibility study. For example, for a possible proposed site Hani Elezit investment, there is potential that the communities become exposed to asbestos pollution during or after remediation works. Not only do measures need to be developed to protect local communities during the project, but local communities should also be sensitized about the potential health risks since asbestos has been used in many buildings which cannot be immediately removed or remediated within the scope of the Project, which will also be done in part of the SEP. Further assessment will be done for existence of other pollutants as part of the site specific ESIA. In case of transport of any hazardous wastes including asbestos the ESIA will also include an emergency preparedness plan in case of accidental spill of these materials. Specific measures for ensuring community health and safety in the vicinity of the KEK will be part of the KEK site specific ESIA whereby the ESMF will provide guideline for addressing potential environmental and social impacts on community health and safety for other sites. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Jan 15, 2020 Page 9 of 12 The World Bank Healing Land For the Future (P172992) The standard is relevant. The potential investment in KEK mine is not expected to result in loss of private lands or non-land assets, nor is there past land acquisition or resettlement conducted in the past that are considered “associated” with the project. Other investments will be defined during the implementation and for those screening procedure will be developed to assess the impact if selected, i.e. investment in Hani Elezit municipality may lead to loss of lands or non-land assets for five to ten households, although the impact on their livelihoods will likely be limited, if at all. Per requirement of the ESS5, a Resettlement Policy Framework (RPF) should be prepared to guide such potential impact. Later, during the implementation on need basis site specific Resettlement Action Plans will be prepared. During the preparation potential for livelihood impacts will also be assessed on users (such as users of the industrial parks, waste pickers etc.) and will be part of the RPF and the social section of the ESMF ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources The Standard is relevant to the project. The project investments include remediation and rehabilitation of contaminated land. The project is expected to bring positive impact in ecological management. Activities at KEK site and other sites include development of parks and public spaces; renewable energy development, provision of clean water supply, etc. The plantation and revegetation activities will bring positive impacts. Since the project is not located in an environmentally sensitive area, nor does it impact any natural habitats, adverse impacts on biodiversity will only be very localized and restricted to construction phase of the project and largely in an already modified habitat. In addition, potential direct or indirect impacts on flora and fauna species will also be assessed in the ESIA study and other site-specific ES instruments as they are prepared. Public Disclosure ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities Not relevant for the project. ESS8 Cultural Heritage The Standard is relevant to the project. Initial screening of potential E&S impacts during the project identification, and discussions with the relevant Government staff do not indicate presence of any tangible cultural heritage in the KEK site. However, potential risks and impacts on tangible cultural heritage can be present at other sites such as Hani I Elizit has a cement and a construction factory in operation from last century, which the Government may want to preserve. Since the exact locations of the project intervention is yet to be confirmed, the client will identify relevant stakeholders as per ESS 10 for meaningful consultation to assess the potential risks and impacts and explore avoidance and mitigation options. Detailed procedures will be provided in the ESIA and ESMF. ESS9 Financial Intermediaries The ESS9 cannot be confirmed at this stage. However, the project may explore sustainable green financing options for SRBLM in Kosovo, and promote green industries and circular economy principles in selected industry sectors. The relevance of the ESS9 to the project will be explored during project preparation. B.3 Other Relevant Project Risks Jan 15, 2020 Page 10 of 12 The World Bank Healing Land For the Future (P172992) There are pervasive institutional capacity gaps at some of the departments, agencies and at municipality level to implement and monitor development projects. ESF implementation in the remediation project will be for the first time in the country. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No At this point, no link has been found with international waterways to alert legal on triggering OP7.5. If any indication is identified to have impact on international/national waterways during preparation, the legal team will be immediately informed. OP 7.60 Projects in Disputed Areas No III. WORLD BANK ENVIRONMENTAL AND SOCIAL DUE DILIGENCE A. Is a common approach being considered? No Financing Partners At this point no financing partners have been identified. Public Disclosure B. Proposed Measures, Actions and Timing (Borrower’s commitments) Actions to be completed prior to Bank Board Approval: The safeguard instruments listed bellow will have to be available in advanced draft form by appraisal in order to allow for an informed decision at this stage. The borrower needs to prepare the following instruments: a) Environmental and Social Impact Assessment for KEK site. The cost of safeguard management will be included in the ESIA. Based on ESIA, ESMP for KEK site will also be prepared and disclosed for by appraisal. b) Labor Management Procedures for KEK site. c) SEP for the KEK site, embeded in the ESIA. d) Environmental and Social Management Framework for other investments and TA including applicable Labor Management Procedures (LMP) and Stakeholder Engagement Framework (SEF). e) Resettlement Policy Framework for other investments and TA. Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP): (a) Processes and timelines for obtaining of requisite various environmental clearances at municipality and national levels for future engagement; and specific timelines for KEK site if not obtained by Appraisal. (b) Studies, assessments and plans as may be required for future management of risks and impacts on cultural assets and heritage, resource efficiencies, pollution management, institutional capacity strengthening. (c) Preparation of ESIA, ESMF, ESMPs, RPF, SEP, LMP, RAP for future investment and TA. (d) The implementation and updating of SEP. (e) Creation of PIU with dedicated E&S staff to help prepare and review environmental assessment studies and implementation. Jan 15, 2020 Page 11 of 12 The World Bank Healing Land For the Future (P172992) (f) Training of relevant PIU staff on ESF requirements. . C. Timing Tentative target date for preparing the Appraisal Stage ESRS 15-Mar-2020 IV. CONTACT POINTS World Bank Contact: Sameer Akbar Title: Senior Environmental Specialist Telephone No: 5258+70792 / Email: sakbar@worldbank.org Contact: Qing Wang Title: Senior Environmental Specialist Telephone No: 458-5023 Email: qwang1@worldbank.org Borrower/Client/Recipient Borrower: KOSOVO MINISTRY OF FINANCE Implementing Agency(ies) Public Disclosure Implementing Agency: Ministry of Environment and Spatial Planning 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): Sameer Akbar, Qing Wang Practice Manager (ENR/Social) Kevin A Tomlinson Recommended on 09-Jan-2020 at 20:15:39 EST Safeguards Advisor ESSA Nina Chee (SAESSA) Cleared on 15-Jan-2020 at 16:04:52 EST Jan 15, 2020 Page 12 of 12