The World Bank RE Window - Strengthening Reform Management in Jordan (P171965) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 09/19/2019 | Report No: ESRSA00270 Sep 19, 2019 Page 1 of 11 The World Bank RE Window - Strengthening Reform Management in Jordan (P171965) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Jordan MIDDLE EAST AND NORTH P171965 AFRICA Project Name RE Window - Strengthening Reform Management in Jordan Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Finance, Competitiveness Investment Project 9/11/2019 9/23/2019 and Innovation Financing Borrower(s) Implementing Agency(ies) Ministry of Planning and Ministry of Planning and International Cooperation International Cooperation Proposed Development Objective(s) Public Disclosure Strengthen management, monitoring and evaluation, and outreach functions for policy reforms in Jordan with a focus on the Five Year Reform agenda. Financing (in USD Million) Amount Total Project Cost 6.50 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] The project will be financed by the Recipient Executed Window of the Jordan MDTF and will: i) Support the reform secretariat and reform design and coordination; ii) Strenghten the PIM-PPP framework and function and iii) Strenghten the procurement framework and function. The proposed project will support the coordination and implementation of the five-year Reform Matrix – the reference plan for economic reform and growth of the Government of Jordon - through the following three components: Sep 19, 2019 Page 2 of 11 The World Bank RE Window - Strengthening Reform Management in Jordan (P171965) 1. Support to reform management, comprising of support to the Reform Secretariat lodged at the Ministry of Planning and International Cooperation (MoPIC) and support to line Ministries and agencies through a Reform Support Fund, to be lodged at MoPIC to finance expertise and capacity building activities. 2. Strengthening the Project Investment Management (PIM)– Public Private Partnerships (PPP) framework and function. 3. Strengthening the public procurement framework and function. The proposed project supports the implementation of the five-year Growth Matrix, which is aligned with the World Bank Group Country Partnership Framework (CPF) for Jordan (2017–2022). The CPF focuses on mitigating the immediate impact of the regional crisis while supporting long-term development objectives and structural reforms, to improve the equity and quality of public service delivery. It is therefore relevant to the current challenge of setting the foundations for equitable growth and job creation. D. Environmental and Social Overview D.1. Project location(s) and salient characteristics relevant to the ES assessment [geographic, environmental, social] The project will not support physical infrastructure as it aims to strengthen national and sectoral reforms. The project aims to strengthen management, monitoring and evaluation, and outreach functions for policy reforms in Jordan with a focus on the Five-Year Reform Matrix. Under Component 1, the project, will specifically be targeted to fully resourcing a Reform Secretariat, housed within Public Disclosure MOPIC, with qualified fulltime staff, both technical (project management and technical staff) and support (M&E and Communications); to coordinate, and provide capacity, to other line ministries, as they advance the implementation of reforms in their respective areas. Key reforms in the 2019/2020 period include Public Procurement Reform; PIM/PPP Governance Framework Reform; Sectoral Licensing Reforms, Climate Change reform; and removing occupational, sector, and other Labor Code restrictions to women in the workplace. The reforms themselves, which are led by their respective line ministries, and are receiving technical assistance from other donors, may result in indirect environmental and social impacts, and each has their own set of stakeholders (e.g. private sector, government entities, civil society, the public). Under Component 2, the Reform Secretariat will procure specific expertise to support the strengthening of a PIM/PPP legal framework and function, including drafting laws, guidelines and procedures. The overall intention is to ensure that selected priority projects will be fiscally prudent, economically and socially viable, and environmentally sustainable. However, specific PPP projects have not yet been identified. D. 2. Borrower’s Institutional Capacity The project will be implemented by the Ministry of Planning and International Cooperation (MOPIC). This project will support establishing the Reform Secretariat within MOPIC for the implementation of the 5-year Growth Matrix. This new unit will build on the existing Compact Project Management Unit (PMU) and its current staff, who have played an essential role in coordinating the design of the Five-Year Reform Matrix with Government of Jordan entities, World Bank and development partners. Besides, the PMU has played the key role in coordinating the implementation of Sep 19, 2019 Page 3 of 11 The World Bank RE Window - Strengthening Reform Management in Jordan (P171965) DPFs I and II. Nonetheless, this would be the first project under ESF to be implemented by MOPIC. As such, this Secretariat will need to include qualified fulltime staff, both technical (Project Management and Technical (Environment and Social which can support ESF preparation and implementation)) and a stakeholder engagement specialist to support (Citizen Engagement, M&E and Communication). II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate Environmental Risk Rating Low This operation is not expected to result in any negative environmental impacts as the interventions which will be financed will be for supporting 'soft' types of interventions as mentioned above under project components. None of the project's components require an environmental assessment given the policy-oriented nature of the activities and the fact that there is no direct link with infrastructure or environment-impacting activities. Nonetheless, should the scope of this operation to be include supporting the development of any strategy, program or legal framework e.g. law or bylaw or any document of similar nature, environmental aspects should be adequately incorporated through undertaking proper strategic environmental assessment. The environmental risk rating should also be adjusted thereafter, as needed. Social Risk Rating Moderate The social risk rating is considered moderate. The project will support the establishment and activities of a Reform Public Disclosure Secretariat to coordinate and implement the requirements of the World Bank’s First and Second Development Policy Financing (DPF). The project will not involve any civil works nor land acquisitions. Main social risks are related to indirect social implications of reforms stemming from the the five year Growth Matrix, led by respective line ministries (with support from the Reform Secretariat). These reforms have already been strategically informed by the World Bank through the DPF and other donors are also providing technical assistance in many of the reform areas. Where the PMU indirectly supports the development of any strategy, program or legal framework e.g. law or bylaw or any document of similar nature, the social and environmental aspects will be incorporated through various measures, such as Terms of Reference for studies or reforms, or through a strategic environmental and social assessment as required, and stakeholder engagement opportunities provided on these issues. A Stakeholder Engagement Plan has been prepared to limit potential social exclusion of vulnerable and disadvantage groups from reform processes. 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: ESS1 is considered relevant to adequately manage the indirect environmental and social risks and impacts of the project. The project will support 'soft' interventions only that will not result in any direct environmental or social risk or impacts. The project will not involve any civil works nor land acquisitions. The project will indirectly support numerous policy or procedural reforms stemming from the implementation of the five year Growth Matrix by funding a Reform Secretariat to coordinate with other line ministries leading the reforms. The reforms could have positive or negative downstream environmental and social implications (e.g. Public Private Partnership (PPP) Reforms Sep 19, 2019 Page 4 of 11 The World Bank RE Window - Strengthening Reform Management in Jordan (P171965) to set up the institutional frameworks that will facilitate potential future medium or large scale PPP infrastructure investments; Climate Change Strategies, Labor law reforms to remove work occupational restrictions for women). Reform processes may result in potential social exclusion of vulnerable and disadvantaged. Many of the reforms will be, or already are supported by other donor-funded technical assistance, (including the PPP reforms), and incorporate good environmental and social practices. A screening procedure will be developed and included in the Project Operations Manual, to screen reforms, ensuring that environmental and social issues are taken into account through a variety of tools, such as incorporating environmental and social aspects into Terms of Reference for technical studies, procedures, and guidelines, conducting Strategic Environmental and Social Assessment (SESA), as relevant, and identifying opportunities for stakeholder or citizen engagement on these issues. The results of the screening process can be used to inform the The Government of Jordan's new Code of Governance Practices of Policies and Legislative Instruments in Government Departments (2018), which requires a general impact assessment for all laws and regulations. ESS10 Stakeholder Engagement and Information Disclosure A Stakeholder Engagement Framework (SEF) (dated September 2019) has been prepared and cleared by the bank, and will be disclosed prior to appraisal. The SEF relates to the Reform Secretariat’s role in supporting the Government of Jordan to communicate and engage with stakeholders on the reforms. This SEF takes a framework approach, outlining the general principles and collaborative strategy to identify stakeholders and prepare Stakeholder Engagement Plans (SEP) addressing the 9 pillars of legal reform, once the Reform Secretariat is in place. Public Disclosure This SEF provides an overview of what information about reform processes will be in the public domain, and where it will be located. It explains, in general, the opportunities for public consultation, and explain how people will be notified of new information or opportunities for comment and how comments will be assessed and taken into account. It also describes the project’s grievance mechanism and how to access this mechanism and how grievances will be managed. 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 The project will support establishment of the Reform Secretariat which will support and coordinate other ministries to undertake policy and legal reforms stemming from the DPL. The Secretariat will have hired staff (10 full time staff and 5-10 consultants). These are direct workers. A Labor Management Procedures (dated September 2019) has been prepared, and will be cleared by the bank and disclosed prior to appraisal. ESS3 Resource Efficiency and Pollution Prevention and Management At this stage, the standard is not deemed relevant. ESS4 Community Health and Safety Sep 19, 2019 Page 5 of 11 The World Bank RE Window - Strengthening Reform Management in Jordan (P171965) The standard is not currently deemed relevant. The project will not involve any physical works that could impact or affect Community Health and Safety. Policy reforms will be screened for downstream impacts on community health and safety. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement There are no physical works expected under the project. The standard is not deemed relevant at this time. Policy reforms will be screened for potential downstream implications on resettlement processes. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources The standard is not deemed relevant as there are no physical works under the project. Policy reforms will be screened for potential downstream biodiversity implications. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities The standard is not deemed relevant at this time. Policy reforms will be screened for potential downstream impacts on indigenous peoples. ESS8 Cultural Heritage Public Disclosure The standard is not deemed relevant. Policy reforms will be screened for downstream implications on cultural heritage. ESS9 Financial Intermediaries The standard is not deemed relevant. B.3 Other Relevant Project Risks No other relevant risks. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No III. BORROWER’S ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) DELIVERABLES against MEASURES AND ACTIONs IDENTIFIED TIMELINE Sep 19, 2019 Page 6 of 11 The World Bank RE Window - Strengthening Reform Management in Jordan (P171965) ESS 1 Assessment and Management of Environmental and Social Risks and Impacts Establish and maintain an organizational structure within the Project Implementation Unit (PMU) with qualified staff and resources to support management of E&S risks including a Full-Time staff equivalent 12/2019 for Social Assessment and Stakeholder Engagement Specialist, and Part-Time staff equivalent for Environmental Specialist. Prepare, adopt and implement a screening procedure in the Projects Operations Manual, applicable to activities of the Reform Secretariat, to identify environmental and social risks, and the need to prepare 12/2019 SESA, or other procedures and guidelines. ESS 10 Stakeholder Engagement and Information Disclosure Update, adopt, and implement the Stakeholder Engagement Framework (SEF) for the Project. Prepare, adopt and implement subsequent SEPs for each of the 9 pillars of reform, according to the timeframes 03/2020 set out in the ESCP. The PMU Social Assessment and Stakeholder Engagement Specialist will provide training to relevant 03/2020 line ministries in stakeholder mapping and engagement. ESS 2 Labor and Working Conditions Public Disclosure To enhance the existing GRM, prepare and implement a written GRM procedure detailing the 03/2020 operation of the GRM, and update the LMP accordingly. ESS 3 Resource Efficiency and Pollution Prevention and Management ESS 4 Community Health and Safety ESS 5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement ESS 6 Biodiversity Conservation and Sustainable Management of Living Natural Resources ESS 7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities ESS 8 Cultural Heritage Sep 19, 2019 Page 7 of 11 The World Bank RE Window - Strengthening Reform Management in Jordan (P171965) ESS 9 Financial Intermediaries B.3. Reliance on Borrower’s policy, legal and institutional framework, relevant to the Project risks and impacts Is this project being prepared for use of Borrower Framework? No Areas where “Use of Borrower Framework” is being considered: "Use of Borrower Framework” is no being considered under this operation. IV. CONTACT POINTS World Bank Contact: Meriem Ait Ali Slimane Title: Senior Private Sector Specialist Telephone No: 5220+85950 / Email: maitalislimane@worldbank.org Contact: Aijaz Ahmad Title: Senior Public Private Partnerships Specialist Public Disclosure Telephone No: 5220+82398 / Email: aahmad@worldbank.org Contact: Roland Lomme Title: Senior Governance Specialist Telephone No: 5220+32289 / Email: rlomme@worldbank.org Borrower/Client/Recipient Borrower: Ministry of Planning and International Cooperation Implementing Agency(ies) Implementing Agency: Ministry of Planning and International Cooperation V. FOR MORE INFORMATION CONTACT Sep 19, 2019 Page 8 of 11 The World Bank RE Window - Strengthening Reform Management in Jordan (P171965) The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects Public Disclosure Sep 19, 2019 Page 9 of 11 The World Bank RE Window - Strengthening Reform Management in Jordan (P171965) VI. APPROVAL Public Disclosure Sep 19, 2019 Page 10 of 11 The World Bank RE Window - Strengthening Reform Management in Jordan (P171965) Task Team Leader(s): Meriem Ait Ali Slimane, Aijaz Ahmad, Roland Lomme Practice Manager (ENR/Social) Pia Peeters Cleared on 18-Sep-2019 at 15:57:29 EDT Public Disclosure Sep 19, 2019 Page 11 of 11