INTEGRATED SAFEGUARDS DATA SHEET IDENTIFICATION / CONCEPT STAGE Public Disclosure Copy Report No.: ISDSC15536 Date ISDS Prepared/Updated: 04-Oct-2016 I. BASIC INFORMATION A. Basic Project Data Country: Honduras Project ID: P157795 Project Name: Honduras PPCR Phase 1 Grant Team Leader(s): Marco Antonio Aguero Estimated Date 18-Nov-2016 of Approval: Managing Unit: GWA03 Lending IPF Instrument: Financing (in USD Million) Total Project Cost: 1.4 Total Bank Financing: 0 Financing Gap: 0 Financing Source Amount Strategic Climate Fund Grant 1.4 Environment C - Not Required Category: Public Disclosure Copy B. Project Development Objective(s) 28. The proposed PDO is to formulate a Strategic Program for Climate Resilience (SPCR) and its investment plan, as well as to establish the enabling environment and conditions for the integration of climate resilience into development planning and implementation. C. Project Description 31. In the context of Honduras, the program will focus on the following several priority areas , which were identified in the Expression of Interest submitted by Honduras to the PPCR in March 2015, and further confirmed during the March 2016 PPCR Joint Mission: ➢❨¢Institutional strengthening and strengthening of legal/policy framework on climate change ➢❨¢Improved knowledge and understanding of risks and processes for monitoring, analysis, evaluation, and alert/early warning systems ➢❨¢Improving resilient agriculture. ➢❨¢Promoting water security, including integrated water resources management and water & sanitation. 32. The PPCR Phase 1 Grant is expected to be implemented through four components, consistent with the Phase 1 proposal approved by the PPCR/CIF in March 2016. The components are as follows: Public Disclosure Copy ➢❨¢ Component 1: Risk analysis to strengthen climate resilience programs and policies. Improving knowledge on climate risks at the territorial and sectoral levels: (a) establishment of damage and loss scenarios associated with climate-related and hydrological hazards; (b) distribution of vulnerabilities, and analysis of future trends that will have impacts nationwide as well as in specific areas; (c) diagnosis and formulation of proposals for strengthening hydro-meteorological and climate services.. ➢❨¢ Component 2: Information for the design of policy reforms and for institutional strengthening. (a) Review and formulation of proposals to strengthen the regulatory framework to and improve inter-institutional coordination mechanisms related to climate change strategies and their mainstreaming in priority sectors, such as: (i) water security, including water resources management, water supply and sanitation; (ii) agriculture, food and nutrition security; and (iii) disaster risk management. (b) Institutional Analysis to inform capacity building needs and strategies, and help institutionalize and mainstream resilience across prioritized sectors through participatory processes. Based on the results of the institutional analysis outlined above, some of the following capacity building activities will be prioritized and carried out: ➢❨¢ Development of institutional capacities for climate variability and change at the sectoral level. This may include sharing of international best practices or south to south exchange related to Public Disclosure Copy the integration of adaptation to climate change for prioritized sectors. ➢❨¢ Development of institutional capacities of SEFIN and MiAmbiente to monitor and evaluate the achievement of objectives and expected results in terms of climate resilience to consolidate existing M&E systems in the NCCS and NAP. ➢❨¢ Component 3: Design and implementation of a participatory consultation at an institutional level, in the context of SPCR development. (a)Development of a participatory consultation process to be undertaken in the country, including effective communication of key messages on the results of analytical studies undertaken in the PPCR context, and on proposals for action on climate variability and change to be included in the SPCR. (b)Awareness raising activities in relation to environmental issues, climate change, and disaster risk, with a focus on specific stakeholders, including communities and populations most affected by climate variability and change in the country, NGOs, CSOs, academia, private sector, among others. Efforts to identify communication gaps at the institutional level , which may hinder awareness raising efforts, understanding of climate risks and the formulation of priority actions, will be made. This will include the perspectives of women, youth, indigenous peoples, local communities, and other vulnerable social groups ➢❨¢ Component 4: Formulation of the SPCR accompanying strategic investment plan built under a participatory process. Public Disclosure Copy Formulation of the SPCR to integrate climate resilience into national development policies, including a portfolio of strategic projects (investment plan) for priority areas will be developed, conducting technical pre-feasibility studies for the identified priority investments. The studies and identified priority investments (investment plan) will take into account the National Development Plan (Vision de PaÃ-s), the NCCS, the NAP and other existing planning instruments. The technical criteria for the prioritization of investments that are to be considered within the SPCR investment plan will take into account environmental and social dimensions. Synergies will also be sought with other CIF programs in Honduras (SREP and FIP), as well as with other ongoing initiatives related to climate change in the country. 33. Tasks associated with the technical coordination of the Phase 1 of the PPCR, financial management and procurement, monitoring, evaluation, and presentation/dissemination of results will be financed through this grant. 34. Through this work, the PPCR is expected to produce the following and results: ➢❨¢Improve convergences between climate model predictions, enhancing baseline information on climate-related risks in vulnerable sectors, and strengthened evidence on the impacts of climate change across Honduras. ➢❨¢Consensus on strategies to build resilience to climate change and an appropriate action plan to be included in the SPCR, with clear identification of the priority areas in the short, medium, and long term. ➢❨¢Identification of the institutional framework and policies (and strengthening needs), in order to Public Disclosure Copy facilitate greater access to financing for initiatives that promote development that is resilient to the effects of climate change across selected sectors and territories. ➢❨¢Strengthened capacity of the CTICC for inter-institutional coordination. ➢❨¢Strengthened capacity for the execution and management of financial resources in MiAmbiente and the Ministry of Finance (SEFIN). ➢❨¢Increased level of awareness and information on climate risks and climate change adaptation at the national level, as well as across selected sectors and territories. The assessment places emphasis on water security, which raises the need for complementing the water demand analysis, including the current physical state of the basins, water quality and hydro met networks. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) 42. The Investment Plan/ Strategic program for climate resilience preparation is assigned an EA category of ➢❨ C➢❨ as this activity poses low or no safeguards risk and specific Safeguards policies will not be triggered as it is not possible to make an accurate assessment of the extent of safeguards risk of project ideas proposed at this stage. There is no expected project preparation at this stage only strategic higher level planning and policy changes. Thus, no safeguard policies will be triggered The project will integrate the principles of the following policies during the design of the SPCR: - Related to Policy OP 4.10: Given a high presence of the indigenous groups and Afro- descendent in the country and as part of the scope of components 2 and 3 of the project and national coverage of the Strategic Program for Climate Resilience (SPCR) it will be necessary to ensure an Public Disclosure Copy informed participation of these communities during the formulation of the SPCR;, therefore, the design of the SPCR will ensure Indigenous Peoples take part in the process, considering the consultation protocol of each ethnic group involved. - Related to Policy OP/BP 4.12 Involuntary Resettlement: The components of the project envisage the preparation of a strategic program for climate resistance and an investment plan; the results are strategic documents for the country and the project does not provide for the implementation of investment projects that required the involuntary restriction of land, housing or livelihood, so it does not require to be activated. However, the project will integrate the principles and guidelines defined in policies OP 4.12 WB in the policy of resistance to climate change and its components. Gender and Inclusion of Vulnerable Groups As the SPCR focuses on sustainable development, reducing gender inequality the integration of vulnerable groups, that normally are those which have the least resilience mechanisms, will be considered during the project. The PPCR Phase 1 project will promote an active participation during the design of the strategy and its investment program. The principles of social equity and citizen participation in the PPCR Phase 1, will be consistent with the Climate Change Law (Decree No. 297-2013) and the National Policy on Women. The latter considers gender participation during the sustainable use and control of biodiversity and natural resources . Therefore, during the forthcoming preparation of the SPCR, best practices will be identified in this regard that could later inform the implementation phase of the PPCR. E. Borrower’s Institutional Capacity for Safeguard Policies 43. The Recipient, including the proposed implementing agency are implementing similar Bank- Public Disclosure Copy financed operations in a manner acceptable to the World Bank. 44. Safeguard policies will not be triggered during the preparation of the SPCR as the consultations for the design of the strategy will be targeted at the institutional level and prioritized sector institutions. There is no expected project preparation at this stage only strategic higher level planning and policy changes, although the principles of the policies will be considered. F. Environmental and Social Safeguards Specialists on the Team Mariela Mena (GWADR) Ruth Tiffer-Sotomayor (GEN04) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ No The Investment Plan/ Strategic program for BP 4.01 climate resilience preparation is assigned an EA category of ?C? as this activity poses low or no safeguards risk and specific Safeguards policies will not be triggered as it is not possible to make an accurate assessment of the extent of safeguards risk of project ideas proposed at this stage. There is no expected project preparation Public Disclosure Copy at this stage only strategic higher level planning and policy changes. Natural Habitats OP/BP 4.04 No No physical intervention on natural habitats will be financed with the proceeds of the project. Thus, the policy is not triggered. While OP 4.04 on natural habitats is not triggered, climate resilience strategies potentially can include infrastructure strategies, in this case their development will consider the principles of these policies when being undertaken. Forests OP/BP 4.36 No No physical intervention on forests will be financed with the proceeds of the project. Thus, the policy is not triggered.While OP 4.36 on forests is not triggered, climate resilience strategies potentially can include forestry strategies, in this case their development will consider the principles of these policies when being undertaken. Pest Management OP 4.09 No No physical intervention will be financed with the proceeds of the project. Thus, the policy is not triggered. Physical Cultural Resources OP/ No No physical interventions will be financed with BP 4.11 the proceeds of the project. Thus, the policy is not triggered. Public Disclosure Copy Indigenous Peoples OP/BP 4.10 No Although no indigenous peoples will be affected with the proceeds of the project. Given the nationwide focus of the proposal, the project will integrate the principles of the policy in regard to informed consultations to be carried out at an institutional level only, regarding climate resilience strategies and policies that could affect indigenous communities, resources, and welfare of IPs in the formulation of the SPCR. Involuntary Resettlement OP/BP No No physical interventions will be financed with 4.12 the proceeds of the project. Thus, the policy is not triggered. There will be no direct impacts associated to the involuntary taking of land. There is no expected project preparation at this stage only strategic higher level planning and policy changes. The project will integrate the principles of the policy during the design of the polciies and strategies. Safety of Dams OP/BP 4.37 No No physical intervention will be financed with the proceeds of the project. Thus, the policy is not triggered. Public Disclosure Copy Projects on International No No physical intervention will be financed with Waterways OP/BP 7.50 the proceeds of the project. Thus, the policy is not triggered. Projects in Disputed Areas OP/BP No No physical intervention will be financed with 7.60 the proceeds of the project. Thus, the policy is not triggered III. SAFEGUARD PREPARATION PLAN Appraisal stage ISDS required?: No IV. APPROVALS Team Leader(s): Name: Marco Antonio Aguero Approved By: Safeguards Advisor: Name: Agnes I. Kiss (SA) Date: 26-Sep-2016 Practice Manager/ Name: David Michaud (PMGR) Date: 28-Sep-2016 Manager: 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons. Public Disclosure Copy