THE KYRGYZ REPUBLIC Resilient Agri-food Clusters Development Project (RACD) P178120 _________________________________________________ APPRAISAL DRAFT ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN Bishkek January 2024 ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Kyrgyz Republic (the Recipient) will implement the Resilient Agri-food Clusters Development Project (hereinafter the Project) with the involvement of the Ministry of Finance (MoF) through the Credit Line Management Unit (CLMU), and the Ministry of Water Resources, Agriculture and Processing Industry (MoWRAPI) through the Agribusiness Competitiveness Center (ABCC) as set out in the Financing Agreement and Grant Agreement. The International Development Association (the Association) has agreed to provide financing for the Project acting in its own name, as set out in the Financing Agreement and, as administrator of the [TF], as set out in the Grant Agreement. 2. The Recipient shall ensure that the Project is carried out in accordance with the Environmental and Social Standards (ESSs) and this Environmental and Social Commitment Plan (ESCP), in a manner acceptable to the Association. The ESCP is a part of the Financing Agreement and Grant Agreement. Unless otherwise defined in this ESCP, capitalized terms used in this ESCP have the meanings ascribed to them in the referred agreement(s). 3. Without limitation to the foregoing, this ESCP sets out material measures and actions that the Recipient shall carry out or cause to be carried out, including, as applicable, the timeframes of the actions and measures, institutional, staffing, training, monitoring and reporting arrangements, and grievance management. The ESCP also sets out the environmental and social (E&S) instruments that shall be adopted and implemented under the Project, all of which shall be subject to prior consultation and disclosure, consistent with the ESS, and in form and substance, and in a manner acceptable to the Association. Once adopted, said E&S instruments may be revised from time to time with prior written agreement by the Association. 4. As agreed by the Association and the Recipient, this ESCP will be revised from time to time if necessary, during Project implementation, to reflect adaptive management of Project changes and unforeseen circumstances or in response to Project performance. In such circumstances, the Recipient acting through the Ministry of Finance and the Association agree to update the ESCP to reflect these changes through an exchange of letters signed between the Association and the Recipient acting through the Minister of Finance. The Recipient shall promptly disclose the updated ESCP. MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY MONITORING AND REPORTING A REGULAR REPORTING Prepare and submit to the Association regular monitoring reports on the Submit semi-annual reports to the World Bank ABCC, CLMU environmental, social, health and safety (ESHS) performance of the throughout Project implementation, commencing Project, including but not limited to the implementation of the ESCP, after the Effective Date. Submit each report to the status of preparation and implementation of E&S instruments required World Bank no later than thirty (30) days after the under the ESCP, stakeholder engagement activities, and functioning of end of each reporting period. the grievance mechanism(s) B INCIDENTS AND ACCIDENTS Promptly notify the Association of any incident or accident related to Notify the Association no later than 48 hours after ABCC, CLMU the Project which has, or is likely to have, a significant adverse effect on learning of the incident or accident. the environment, the affected communities, the public or workers, including, inter alia, cases of sexual exploitation and abuse (SEA), sexual harassment (SH), and accidents that result in death, serious or multiple injury. Provide sufficient detail regarding the scope, severity, and possible causes of the incident or accident, indicating immediate measures taken or that are planned to be taken to address it, and any information provided by any contractor and/or supervising firm, as appropriate. Subsequently, at the Association’s request, prepare a report on the Provide subsequent report to the Association within a incident or accident and propose any measures to address it and prevent timeframe acceptable to the Association. its recurrence. Include in bidding documents of contractors and supervision firms the Provide subsequent reports to the World Bank, obligations to report incidents and accidents to the Recipient/PIU. Ensure including Root Cause Analysis (RCA), Corrective and monitor that an incident register at all construction sites is kept by the Action Plan (CAP), precautions, and compensation contractors throughout Project implementation. measures taken within an acceptable timeframe from the time the initial notice was provided. C CONTRACTORS MONTHLY REPORTS Require contractors and supervising firms to provide monthly monitoring Submit the monthly reports to the Bank as annexes to ABCC reports on ESHS performance in accordance with the metrics specified in the reports to be submitted under Action A above. the respective bidding documents and contracts and submit such reports to the Association. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE Maintain the Project Implementation Units (PIUs) established under the Maintain the PIUs as set out in the Financing ABCC, CLMU MoWRAPI and MoF, respectively, with qualified staff, including Agreement and Grant Agreement. environmental and social specialists, and resources to support the management of ESHS risks and impacts of the Project, and the delivery of actions agreed upon in this ESCP. The MоWRAPI PIU shall recruit and maintain two Environmental and Hire the environmental and social specialists no later Social (E&S) specialists, one E&S specialist for the project to be based than thirty (30) days after the Project Effective Date in Bishkek, and one E&S specialist for the Jalal-Abad oblast. The E&S and thereafter maintain these positions throughout specialist to be based in Bishkek will serve Chui and Naryn oblasts and Project implementation. will be responsible for overall E&S coordination and reporting under Component 2. All specialists shall have qualifications, experience, and terms of reference acceptable to the Association. The MoF PIU shall utilize the current environmental and social specialist to monitor compliance with the ESHS risks and impacts of the FIs under Component 1. Additional specialists shall be hired when and as needed. 1.2 ENVIRONMENTAL AND SOCIAL INSTRUMENTS Adopt and implement an Environmental and Social Management The draft ESMF will be consulted, finalized, ABCC, CLMU Framework (ESMF) consistent with relevant ESSs. The ESMF shall approved, and disclosed before the Project Effective include guiding procedures for environmental and social screening, Date and implemented throughout Project evaluation, review, disclosure and consultation, management, implementation. supervision, and monitoring procedures for all project activities. Adopt and implement an Environmental and Social Management Plan Adopt the ESMP or ESMP checklist prior to the (ESMP) or ESMP checklist for subprojects as relevant and consistent carrying out of a subproject that requires the adoption with the relevant ESSs. of such ESMP or ESMP checklist. Once adopted, implement the respective ESMP or ESMP checklist throughout Project implementation. ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM (ESMS) Develop and implement PFIs ESMSs, which include procedures for ESMSs, in form and substance acceptable to the Bank CLMU, PFIs screening, monitoring, and reporting of moderate and low-risk activities adopted before carrying out screening of any of the loan support for sub-projects under Part 1 of the Project in line with subproject. Once established, the ESMS shall be World Bank’s ESS 9. maintained and operated throughout Project implementation. 1.3 TECHNICAL ASSISTANCE Ensure that the consultancies, studies, Throughout Project implementation. ABCC, CLMU capacity building, training, and any other technical assistance activities under the Project are carried out in accordance with terms of reference acceptable to the Association, that are consistent with the ESSs. Thereafter ensure that the outputs of such activities comply with the terms of reference. 1.4 MANAGEMENT OF CONTRACTORS Incorporate the relevant aspects of the ESCP, including, inter alia, the As part of the preparation of all procurement ABCC relevant E&S instruments, the Labor Management Procedures, and the documents and prior to the signing of respective code of conduct, into the ESHS specifications of the procurement contracts with contractors documents and contracts with contractors. Thereafter ensure that the contractors comply and cause subcontractors, as relevant, to comply with Supervise contractors’ compliance throughout the the ESHS specifications of their respective contracts. Project implementation. 1.5 INCLUSION / EXCLUSION RISKS Update and adopt the Credit Line Manual (CLM) that will describe the The CLM shall be prepared, approved by the CLMU procedures for providing loans to productive partnerships (producers and Association, and adopted before the Project Effective processors) as well as producer groups in the dairy and horticulture Date. clusters. The CLM shall detail the E&S management, the eligibility criteria, and the selection process and prioritize the inclusion of youth, women, and vulnerable groups. 1.6 CONTINGENT EMERGENCY RESPONSE COMPONENT a) The adoption of the CERC Manual in form and ABCC a) Ensure that the CERC Manual includes a description of the ESHS substance acceptable to the Association is a assessment and management for the implementation of the CERC withdrawal condition under Section I.F of Schedule 2 component in accordance with the ESSs. of the Financing Agreement for the Project. b) Adopt any environmental and social (E&S) instruments that may be b) Adopt any required E&S instrument and include it required for activities under the CERC component of the Project, in as part of the respective bidding process, if accordance with the CERC and the ESSs, and thereafter implement the applicable, and in any case, before the carrying out of measures and actions required under said E&S instruments within the the relevant Project activities for which the E&S timeframes specified in said E&S instruments. instrument is required. Implement the E&S instruments in accordance with their terms throughout Project implementation. ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT PROCEDURES Adopt and implement the Labor Management Procedures (LMP) for the Adopt the LMP prior to the Project Effective Date, and ABCC, CLMU Project, including, inter alia, provisions on working conditions, thereafter implement the LMP throughout Project management of workers relationships, occupational health and safety implementation. (including personal protective equipment and emergency preparedness and response), code of conduct (including relating to SEA and SH), forced labor, child labor, grievance arrangements for Project workers, and applicable requirements for contractors, subcontractors, and supervising firms. 2.2 GRIEVANCE REDRESS MECHANISM FOR PROJECT WORKERS Establish a grievance mechanism within 15 days of the ABCC, CLMU Establish and operate a grievance mechanism for Project workers, as Effective Date and thereafter maintain and operate described in the LMP and consistent with ESS2. throughout Project implementation. ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3.1 RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT: ESS3 shall be assessed as part of the ESDD of each CLMU/PFIs As part of the E&S due diligence (ESDD) to be conducted for sub- sub-project, and ESAP developed to address projects under Part 1 of the Project by the PFIs, ESS3 shall be applied identified gaps prior to PFI’s approval to extend a within the scope of the PFIs ESMS specified in the CLM, as relevant. loan for such sub-project to the beneficiary. The As part of the ESDDs conducted by the PFIs, Environmental and Social ESAP shall be implemented throughout Project Action Plans (ESAP), which may include pollution prevention and implementation. abatement plans, will be developed to address identified gaps in case of detecting such gaps. Develop and implement measures and actions for resource efficiency and Same timeframe as for the adoption and ABCC pollution prevention management in all site-specific ESMPs and ESMP implementation of the ESMPs and ESMP checklists. checklists, as relevant. These shall include measures to manage use of raw materials, water, and energy, fertilizers and pesticides, air, water, soil pollution and waste related to works, equipment, agriculture and dairy related activities and other relevant project’s activities under Component 2. ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 COMMUNITY HEALTH AND SAFETY: Ensure preparation, adoption and implementation of measures and Same timeframe as for the adoption and ABCC, CLMU/PFIs actions to evaluate and manage specific risks and impacts to the implementation of ESMPs community associated with the Project activities, including excessive noise and dust levels, use of agrochemicals, safety and access restrictions, the behaviour of Project workers, risks of labor influx, response to emergency situations, etc. The proposed mitigation measures should be specified in the site-specific ESMPs to be prepared in accordance with the ESMF requirements and the relevant OHS protocols following WB EHS Guidelines. As part of the E&S due diligence (ESDD) to be conducted by PFI’s for ESS 4 shall be assessed as part of the ESSD of each CLMU/PFIs sub-projects under Part 1 of the Project, ESS4 shall be applied within sub-project, and ESAPs shall be developed to address the scope of PFIs ESMS specified in the CLM as relevant. identified gaps prior to PFI’s approval to extend a loan for such sub-project to the beneficiary. The ESAPs As part of the ESDDs conducted by the PFIs, Environmental and Social shall be implemented throughout Project Action Plans (ESAP), which may include community health and safety implementation. plans or emergency preparedness and response plans, will be developed to address identified gaps in case of detecting such gaps. 4.2 SEA/SH RISKS MITIGATION Ensure that site-specific ESMPs include actions to prevent and mitigate Same timeframe as for the adoption and ABCC risks of sexual exploitation and abuse and sexual harassment (SEA/SH) implementation of ESMPs and ESMP checklists. in line with ESMF and enforce their implementation. This includes but is not limited to development and adherence to Code of Conduct for all Enforcement throughout Project implementation. staff, a SEA/SH-sensitized grievance mechanism, carry out GBV service providers mapping (as appropriate), awareness raising of all employees and community members on SEA/SH risks and mitigation measures. ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT This ESS is not relevant for this project. ESS6: CONSERVATION OF BIODIVERSITY AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES This ESS is not relevant for this project. ESS 7: INDIGENOUS PEOPLES / HISTORICALLY UNDERAPPRECIATED TRADITIONAL LOCAL COMMUNITIES IN SUB-SAHARAN AFRICA This ESS is not relevant for this project. ESS 8: CULTURAL HERITAGE 8.1 CHANCE FINDS Describe and implement the chance finds procedure described in the Same timeframe as for the adoption and ABCC subproject specific ESMP or ESMP checklist developed for the Project. implementation of ESMPs and ESMP checklists. ESS 9: FINANCIAL INTERMEDIARIES 9.1 The PFIs shall develop, adopt and thereafter maintain, and implement the Prepare and adopt the PFIs ESMSs no later than three CLMU and PFIs ESMS referred to in action 1.2 above, to identify, assess, manage, and months after the Effective date and before carrying out monitor the environmental and social risks and impacts of the loan screening of any subproject. Once established, the support for sub-projects under Part 1 of the Project. The ESMS shall ESMSs shall be maintained and operated throughout include, inter alia, the following: Project implementation. (a) An overall strategy and policy commitment signed and approved by each PFI's senior management. (b) Procedures covering inter alia the following: i. PFI’s screening of all sub-projects against the exclusion list under the Project. ii. PFI’s screening, review, and categorization of all sub- projects proposed for financing under the Project according to their potential environmental and social risks and impacts, including conducting Environmental and Social Assessments of supported activities as required by national laws of Kyrgyz Republic. iii. PFI’s checking of beneficiary preparedness and readiness to implement relevant national laws, and World Bank’s ESSs requirements and EHS guidelines. iv. PFI’s monitoring, maintaining, and regularly updating of environmental and social information on each sub- project/beneficiary. v. PFI’s monitoring of the environmental and social risks of the World Bank-supported portfolio. Ensure (i) that the agreements between the MoF and PFIs include the Throughout Project implementation obligation of the PFI to comply with the requirements of the relevant national legislation, the exclusion list of the Project and the PFIs ESMS, (ii) compliance with such obligations throughout Project implementation; and (iii) that the obligation to comply with relevant national legislation is included in the agreement between the PFI and each beneficiary and where gaps are identified from ESDDs conducted, corrective action plans should be incorporated in the agreements between the PFIs and the beneficiaries. Ensure each PFI’s Senior management’s commitment to provide adequate staff, capacity, and resources to satisfactorily implement the Bank-approved ESMS throughout Project implementation. 9.2 FI ORGANIZATIONAL CAPACITY: Establish and maintain an Same timeframe as for the adoption and CLMU and PFIs organizational capacity and competency for implementing the ESMS implementation of PFI ESMS. with clearly defined roles and responsibilities 9.3 SENIOR MANAGEMENT REPRESENTATIVE: Designate a senior Same timeframe as for the adoption and CLMU and PFIs management representative to have overall accountability for the implementation of PFI ESMS. environmental and social performance of FI subprojects. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURES 10.1 STAKEHOLDER ENGAGEMENT PLAN Adopt and implement a Stakeholder Engagement Plan (SEP) for the A draft SEP was already prepared and disclosed and ABCC, CLMU Project, consistent with ESS10, which shall include measures to, inter shall be updated no later than thirty (30) days after the alia, provide stakeholders with timely, relevant, understandable and Effective Date. The SEP shall be implemented accessible information, and consult with them in a culturally appropriate throughout Project implementation. manner, which is free of manipulation, interference, coercion, discrimination and intimidation. 10.2 PROJECT GRIEVANCE MECHANISM Establish, publicize, maintain, and operate an accessible grievance ABCC, CLMU mechanism to receive and facilitate resolution of concerns and Establish the Project GM no later than fifteen (15) grievances in relation to the Project promptly and effectively, in a days after the Effective Date of the Project and transparent manner that is culturally appropriate and readily accessible thereafter maintain and operate the GM throughout to all Project-affected parties, at no cost and without retribution, Project implementation. including concerns and grievances filed anonymously, in a manner consistent with ESS10. The grievance mechanism shall be equipped to receive, register, and facilitate the resolution of SEA/SH complaints, including through the referral of survivors to relevant gender-based violence service providers, all in a safe, confidential, and survivor-centered manner. CAPACITY SUPPORT (TRAINING) CS1 Training to be provided to relevant staff of the ABCC, PFIs and other Within the first year of the Project implementation, in ABCC, MoF involved agencies, and beneficiaries on the following topics: order of relevance, followed by, at minimum, annual − Screening and preparation of site-specific ES instruments and refresher training as needed throughout project specific aspects of environmental and social assessment, implementation. supervision, and monitoring, as described in the ESMS and ESMF; − Relevant occupational health and safety issues, including COVID-19 precautions; − Gender Action Plan, SEP, and GRM implementation; − Labor Management Procedures. CS2 Training for Project workers on: − Occupational health and safety, including emergency prevention Training shall be delivered at the commencement of ABCC, MoF and preparedness and response arrangements to emergency engagement of Project workers, followed by, at situations; minimum, one annual refresher training. − SEA/SH risk prevention and Labor Management Procedures; − Community health and safety, including awareness of HIV, gender-based violence (GBV) and sexual exploitation, abuse and sexual harassment (SEA/SH); − Grievance redress mechanism.