The World Bank RESTRUCTURING ISDS Ethiopia Water Supply, Sanitation and Hygiene Project (P133591) Integrated Safeguards Data Sheet Restructuring Stage Restructuring Stage | Date ISDS Prepared/Updated: 12-Jul-2018| Report No: ISDSR25253 Regional Vice President: Hafez M. H. Ghanem Country Director: Carolyn Turk Senior Global Practice Director: Jennifer J. Sara Practice Manager/Manager: Maria Angelica Sotomayor Araujo Task Team Leader: Habab Taifour The World Bank RESTRUCTURING ISDS Ethiopia Water Supply, Sanitation and Hygiene Project (P133591) . I. BASIC INFORMATION 1. BASIC PROJECT DATA Project ID Project Name P133591 Ethiopia Water Supply, Sanitation and Hygiene Project Task Team Leader(s) Country Habab Taifour Ethiopia Approval Date Environmental Category 20-Mar-2014 Partial Assessment (B) Managing Unit Is this a Repeater project? GWA08 PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 233.80 Total Financing 233.80 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 205.00 IDA Credit 205.00 Non-World Bank Group Financing Counterpart Funding 28.80 Borrower/Recipient 28.80 2. PROJECT INFORMATION The World Bank RESTRUCTURING ISDS Ethiopia Water Supply, Sanitation and Hygiene Project (P133591) Current Project Development Objective The proposed development objective of the project is to “increase access to improved water supply and sanitation services for residents in participating woredas/towns and communities in Ethiopia.� . 1. PROJECT DESCRIPTION A. Introduction 1. A credit of US$205 million equivalent was approved for the WaSHP on March 20, 2014 with the Project Development Objective (PDO) to “increase access to improved water supply and sanitation services for residents in participating woredas/towns and communities in Ethiopia.� The project aimed to provide benefits in the form of improved water supply services and sanitation and hygiene education to an estimated 2.62 million people (1.62 million rural and 1 million urban). It was estimated that project resources would benefit unserved people in about 150 woredas and 70 small and medium towns. To achieve the PDO, the project is composed of three components: (i) Rural and Pastoralist WaSH; (ii) Urban WaSH; and (iii) Program Management, Monitoring and Evaluation. 2. The project was restructured in March 2015 to pool IDA resources with funds from other development partners (DPs) financing the WASH sector through a sector wide programmatic approach . A pooled financing mechanism, the Consolidated WASH Account (CWA) was created to harmonize planning, budgeting and implementation of the government of Ethiopia’s ambitious One WASH Nati onal Program (OWNP). This program is known as OWNP – CWA. The restructuring allowed IDA resources under WaSHP to be pooled with resources from African Development Bank (AfDB - US$90.6 million), United Kingdom Department for International Development (DFID - US $131 million) and UNICEF (US$10 million) into the CWA located at the National Bank of Ethiopia. The combined resources of OWNP-CWA targeted 382 woredas and 144 towns (124 small and 20 medium). The results framework was amended to reflect increased scale of activities and it was agreed that any revisions and amendments to the results would be dimensioned accordingly in the joint Program Operations Manual. The restructuring also designated that the World Bank would provide fiduciary and safeguard oversight for all OWNP-CWA financed activities on behalf of all contributing DPs. 3. Total CWA resources fluctuated due to additional financing from DPs and diversion of funds to respond to humanitarian crisis. Following the creation of the OWNP-CWA, AfDB provided Additional Financing of US$6 million. In 2016, following a declaration of a state of emergency by the Government of Ethiopia (GoE), DFID diverted US$20 million equivalent and UNICEF diverted US$6 million of OWNP-CWA committed funds to support humanitarian efforts. In May 2017, the Government of Finland joined as a new partner to the OWNP-CWA with a contribution of US$2.5 million. 4. With the proposed extension achievement of the Project Development Objective is achievable. Targets for rural and institutional WaSH will be met or exceeded. Targets for urban WaSH are lagging, but still remain The World Bank RESTRUCTURING ISDS Ethiopia Water Supply, Sanitation and Hygiene Project (P133591) achievable. Program management capacity and coordination has steadily increased over the course of the implementation period with notable progress for multi-sectoral planning, budgeting and implementation. 5. A Level 2 restructuring of the project will be executed with the proposed changes to : (i) extend the closing date of the original financing from June 30, 2019 to June 30, 2020 to allow sufficient time for full achievement of revised urban WaSH targets; (ii) modify the results framework to reflect reduced beneficiaries for urban WASH to account for reduction in targeted towns from 144 to 94 due to reduction in OWNP – CWA resources and increased service level standards set forth by the GoE’s Growth and Transformation Plan II (GTP II); (iii) trigger Operational Policy 4.37 Safety of Dams; and (iv) removal of the unutilized contingency component. B. Rationale for Restructuring 6. The purpose of the extension is to allow for achievement of urban WaSH project development objectives (PDO) targets. In order to fully achieve project targets, an extension is needed to complete water supply systems that are under construction and managed at the regional level. The major factors that contributed to implementation delays are: (i) high cost escalation of proposed urban WaSH activities due to increase in service level standards introduced in the GTP II; (ii) reduction of available budget due to diversion of US$26 million equivalent of OWNP-CWA resources (from DFID and UNICEF) in 2016 to address emergency humanitarian efforts; (iii) the complexity of urban water schemes that require large quantities of imported goods such as electro-mechanical equipment, steel casings, pipes and fittings and timely availability of hard currency to procure imported goods; and (iv) volatile security situation that hindered access to some project sites and discouraged contractors from mobilizing machinery to finalize activities. 29 out of 60 town water supply schemes that are under construction are in Oromia Region alone – these towns also represent the highest concentration of targeted urban WaSH beneficiaries. The pace of implementation in Oromia was significantly impacted due to the sporadic unrest. The proposed extension would allow Oromia Region in particular to make up for the delays and meet proposed urban WaSH targets. Urban sanitation targets that are also lagging, require additional time for completion. Additional time is also required to complete a series of strategic studies managed at federal level. 7. PDO targets for urban water supply beneficiaries require revision and reduction . In light of the high cost escalation and reduction in OWNP- CWA program resources, financing for all targeted towns is not available. Twenty-one small towns and nine medium towns will not be financed under this phase of OWNP- CWA. The original targeted beneficiaries cannot be met and need to be revised accordingly. The targets for urban beneficiaries provided with access to improved water supply will be reduced from 2.1 million to 1.5 million to account for the 30 towns that will not be financed under the project as originally envisaged. 8. The Bank’s Operational Policy (OP) 4.37, Safety of Dams is triggered. A consultancy for the study and design for Cibilu Dam (Water Project III), ancillary structures, water treatment plant, transmission and distribution are in place and requires adequate oversight as per the Bank’s OP 4.37. The consultancy contract was signed in November 2017, subsequently halted due to insecurity that hindered mobility outside of Addis and surrounding areas. The consultant was remobilized to resume activities in March 2019. The team was aware that OP 4.37 is applicable and required triggered and considered the use of this comprehensive restructuring to do so. Continued discussions regarding risk categorization and action plan to ensure The World Bank RESTRUCTURING ISDS Ethiopia Water Supply, Sanitation and Hygiene Project (P133591) adequate oversight by Bank team are ongoing. These discussions may necessitate potential further internal Bank approvals and measures and revisions in the future to ensure that the feasibility study and associated Environment and Social Impact Assessments are prepared in accordance to Bank policies and standards and with the level of risks. 9. Removal of unutilized contingency component. For internal processing purposes, removal of this component is dimensioned as part of the restructuring. This component was not part of the Financing Agreement and does not constitute a separate disbursement category. The restructuring proposes to remove this component from the Bank’s internal reporting format in the Operations Portal. . 1. PROJECT LOCATION AND SALIENT PHYSICAL CHARACTERISTICS RELEVANT TO THE SAFEGUARD ANALYSIS (IF KNOWN) Ethiopia has adequate surface and ground water resources to meet the demands for potable water and sanitation facilities. However, the spatial distribution of water sources, particularly in the drier parts of the country requires different types of water lifting technologies for water extraction. For instance, in the pastoral areas, deep boreholes drilling machines might be used, while in the central highlands, with shallow water wells, might require the use of water pumps and or simple digging because of the closeness of the ground water sources. The project will support government's national program which covers rural and urban beneficiaries all over Ethiopia. The project specific sites will be identified during implementation and for this reason the project is using a framework approach to environmental and social issues. The environmental and resettlement consequences of the project's civil work activities are likely to be very minor, however, due to the uncertainties on the nature and scope of the civil works and the nation wide spread of the project, including the participation of undeserved communities in the remote areas, it was determined that ESMF, RPF and SA will be prepared, cleared and disclosed before project appraisal and the required mitigation plans will be prepared before commencement of any civil work. The World Bank is also considering providing technical assistance in the form of capacity building activities to the project team so that they can adequately manage the safeguards aspects of the project during implementation. 2. ENVIRONMENTAL AND SOCIAL SAFEGUARDS SPECIALISTS ON THE TEAM Yalemzewud Simachew Tiruneh, Social Specialist Tesfa Teferi Gebreegziabher, Social Specialist Tesfaw Ashagrie Zegale, Environmental Specialist Tamru Demsis Temam, Environmental Specialist SAFEGUARD_TABLE 3. SAFEGUARD POLICIES TRIGGERED Safeguard Policies Triggered Explanation OP 4.01 is triggered by the proposed project due to Environmental Assessment (OP) (BP 4.01) Yes its planned rehabilitation and construction The World Bank RESTRUCTURING ISDS Ethiopia Water Supply, Sanitation and Hygiene Project (P133591) activities under components 1 & 2. Since specific investment locations cannot be identified at this stage, the Borrower has revised the Environmental and Social Management Framework used by the recently closed WSSP, particularly with regards to current developments. The prepared safeguards instruments have been consulted upon and disclosed prior to appraisal. Performance Standards for Private Sector No Activities OP/BP 4.03 Both urban and rural water development infrastructure will be implemented in areas settled Natural Habitats (OP) (BP 4.04) No by humans that are not close to any natural habitats. The project, therefore, will not have any impact on natural habitats. No water development sub-project will be Forests (OP) (BP 4.36) No implemented in forested areas, nor doe the project involve forestry. The project does not involve pest management Pest Management (OP 4.09) No measures. The project will not affect any physical cultural resources. However, as precaution measure, the Physical Cultural Resources (OP) (BP 4.11) Yes policy has been triggered and the necessary procedures are included in the ESMF and screening forms. Based on the screening conducted by the World Bank, the majority of people in the project area meet the criteria defined under OP4.10, and therefore, the project has triggered OP/BP 4.10 and an enhanced social assessment (SA) was conducted to complement the RPF and to identify social issues . Key stakeholders were consulted in the Woredas, Kebeles and communities, including identified vulnerable and undeserved groups to seek their Indigenous Peoples (OP) (BP 4.10) Yes broad support for the project and emphasize the importance of WaSH services to themselves and their families. The findings of the enhanced social assessment and extensive consultations, including measures to ensure that the project involves and benefits appropriately the various groups has been fully reflected in the PAD. The social assessment has been consulted upon and disclosed before appraisal. OP 4.12 is triggered by the proposed project due to its planned rehabilitation and construction Involuntary Resettlement (OP) (BP 4.12) Yes activities under components 1 & 2. Since specific investment locations cannot be identified at this The World Bank RESTRUCTURING ISDS Ethiopia Water Supply, Sanitation and Hygiene Project (P133591) stage, a Resettlement Policy Framework (RPF) has been prepared, consulted upon and will be disclosed to ensure that appropriate measures are in place to address any issues which might arise from potential land acquisition and or restriction of access to communal natural resources under the Project. When the investment sites are identified the borrower will prepare a Resettlement Action Plan (RAP). This policy is triggered as the project is supporting Safety of Dams (OP) (BP 4.37) Yes the development of feasibility studies for water storage that should follow OP 4.37 standards. OP 7.50 is triggered because the proposed project will finance water supplies to several smaller towns Projects on International Waterways (OP) and rural settlements that will cause abstraction of Yes (BP 7.50) surface and ground water. Therefore, Ethiopia's riparians have been notified and were advised to provide comments no later than January 20, 2014. The policy is not triggered; as no water Projects in Disputed Areas (OP) (BP 7.60) No development sub-project will be implemented in disputed areas. KEY_POLICY_TABLE I. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT A. SUMMARY OF KEY SAFEGUARD ISSUES 1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts. The project is classified as category B. Six safeguards polices have been triggered. The Environmental Assessment, Physical Cultural Resources, Involuntary Resettlement, Safety of Dams, Projects on International Waterways, and Under-served People (Vulnerabilities). The overall environmental impacts of the project are positive, especially as planned activities will supply safe drinking water and sanitation facilities. Some of the negative impacts are site specific and these will be localized and can be reduced or avoided with proper mitigation measures. There are ongoing discussions related to categorization of risks. The outcomes of these discussions may necessitate a change in risk categorization or additional measures to ensure oversight of activities related to OP4.37. The Environmental and Social Management Framework (ESMF) will be used to address any environmental and social impacts of the project. The ESMF will be disclosed in-country and through the InfoShop in accordance with Bank requirements on November 30, 2013 The project’s anticipated social impacts have triggered OP4.12 and OP4.10 and in keeping with good practice established under WSSP, this project have to put in place mitigation mechanisms acceptable to the World Bank to mitigate these impacts. For impact on land use and structure, Resettlement Policy Framework (RPF) used under WSSP is updated and customized to the specificity of the WaSH-II, to address any potential impacts, which is expected to be site specific and minor. The Bank’s OP4.10 is triggered, based on the screening conducted by the World Bank, which indicates that the majority of the people in the project area meet the criteria defined under OP4.10. Therefore, The World Bank RESTRUCTURING ISDS Ethiopia Water Supply, Sanitation and Hygiene Project (P133591) a social assessment (SA) was conducted to complement the RPF. The PAD includes measures to ensure that the project has free, prior and informed consultation leading to broad community support; mitigates any adverse impacts on communities; includes culturally appropriate benefit-sharing; includes a grievance redress mechanism; and, has a monitoring and evaluation system. The social assessment was consulted upon and disclosed prior to Appraisal. Oversight for study and design of Cibilu Dam an ancillary structures will necessitate the Client to engage an independent Panel of Experts based on Terms of References (ToRs) that are reviewed and approved by the World Bank. As part of the scope of the feasibility study, requisite plans such as (Emergency Management Plan, Operation and Maintenance, Construction Supervision and Dam Safety Instrumentation) will be prepared and independently reviewed by the Panel of Experts. The ToRs for a detailed Environmental and Social Assessment and if needed a standalone Resettlement Action Plan that may be prepared as part of this support will be reviewed by the Bank as well as independent experts to ensure compliance with OP4.37. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area. The project will not have potential indirect or long term impact. 3. Describe any potential alternatives (if relevant) considered to help avoid or minimize adverse impacts. The existing traditional institutional structure for water supply will be enhanced and the planning and management of sub-projects will involve the participation of beneficiary communities’ benefit sharing and mitigating adverse environmental and social impacts. 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 borrower has good experience in preparing safeguards instruments and screening sub-projects to identify environmental and social impacts; however its institutional capacity for the implementation of mitigation measures is limited. The project will support measures that will strengthen the Borrower's capacity to identify and assess potential adverse environmental and social impacts and to implement and monitor appropriate mitigation measures. Specifically, the borrower will designate a qualified and experienced sociologist and an environmental officer to be responsible for social and environmental safeguards matters and they will receive training on World Bank safeguards policies. The project has developed a grievance redress system, and a culturally appropriate benefit-sharing mechanism. 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 were consulted in the Woredas, Kebeles and communities, including identified vulnerable and under-served groups (meeting the OP 4.10 criteria) to seek their broad support for the project and emphasize the importance of WaSH services to themselves and their families. DISCLOSURE_TABLE B. DISCLOSURE REQUIREMENTS ENV_TABLE The World Bank RESTRUCTURING ISDS Ethiopia Water Supply, Sanitation and Hygiene Project (P133591) Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank Date of submission for disclosure 07-Nov-2013 29-Nov-2013 For Category ‘A’ projects, date of distributing the Executive Summary of the EA to the Executive Directors “In country� Disclosure Country Date of Disclosure Ethiopia 28-Nov-2013 Comments RESETTLE_TA BLE Resettlement Action Plan/Framework Policy Process Date of receipt by the Bank Date of submission for disclosure 14-Oct-2013 29-Nov-2013 “In country� Disclosure Country Date of Disclosure United States 03-Dec-2013 Comments INDIG ENOUS_TA BLE Indigenous Peoples Development Plan/Framework Date of receipt by the Bank Date of submission for disclosure 04-Nov-2013 29-Nov-2013 “In country� Disclosure Country Date of Disclosure United States 03-Dec-2013 The World Bank RESTRUCTURING ISDS Ethiopia Water Supply, Sanitation and Hygiene Project (P133591) Comments 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? No PCR_TABLE OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? No Does the credit/loan incorporate mechanisms to mitigate the potential adverse No impacts on cultural property? IP_TABLE OP/BP 4.10 - Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Framework (as appropriate) No been prepared in consultation with affected Indigenous Peoples? 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? SD_TABLE OP/BP 4.37 - Safety of Dams Have dam safety plans been prepared? No Have the TORs as well as composition for the independent Panel of Experts (POE) Yes been reviewed and approved by the Bank? Has an Emergency Preparedness Plan (EPP) been prepared and arrangements No been made for public awareness and training? PIW_TABLE The World Bank RESTRUCTURING ISDS Ethiopia Water Supply, Sanitation and Hygiene Project (P133591) OP 7.50 - Projects on International Waterways Have the other riparians been notified of the project? Yes If the project falls under one of the exceptions to the notification requirement, has this been cleared with the Legal Department, and the memo to the RVP NA prepared and sent? Has the RVP approved such an exception? NA 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? II. APPROVALS Task Team Leader(s) Habab Taifour Approved By Safeguards Advisor Nathalie S. Munzberg 27-Jun-2019 Practice Manager/Manager Pier Francesco Mantovani 27-Jun-2019 . The World Bank RESTRUCTURING ISDS Ethiopia Water Supply, Sanitation and Hygiene Project (P133591)