The World Bank THIRD ADDITIONAL FINANCING FOR STRENGTHEN ETHIOPIA’S ADAPTIVE SAFETY NET PROJECT (P181626) Additional Financing Appraisal Environmental and Social Review Summary Appraisal Stage (AF ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 02/10/2024 | Report No: ESRSAFA683 Feb 12, 2024 Page 1 of 13 The World Bank THIRD ADDITIONAL FINANCING FOR STRENGTHEN ETHIOPIA’S ADAPTIVE SAFETY NET PROJECT (P181626) I. BASIC INFORMATION A. Basic Project Data Country Region Borrower(s) Implementing Agency(ies) Ethiopia EASTERN AND SOUTHERN AFRICA Project ID Project Name P181626 Third Additional Financing For Strengthen Ethiopia’s Adaptive Safety Net Project Parent Project ID (if Parent Project Name any) P172479 Strengthen Ethiopia’s Adaptive Safety Net Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Social Protection & Investment Project 3/11/2024 5/2/2024 Jobs Financing Public Disclosure Estimated Decision Total Project Cost Review Date 2/26/2024 200,000,000 Proposed Development Objective The Project development objectives are (a) to expand geographic coverage and enhance service delivery of Ethiopia’s adaptive rural safety net to improve the well-being of extremely poor and vulnerable households in drought prone communities, and (b) in case of an Eligible Early Response Financing Event (“Eligible ERF Event”), respond promptly and effectively to it. B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? Yes C. Summary Description of Proposed Project Activities Feb 12, 2024 Page 2 of 13 The World Bank THIRD ADDITIONAL FINANCING FOR STRENGTHEN ETHIOPIA’S ADAPTIVE SAFETY NET PROJECT (P181626) The proposed project would be an Investment Project Financing with an estimated one third of the Bank credit allocated to Performance Based Indicators (PBC). The proposed project will support the fifth phase of the Government of Ethiopia’s Productive Safety Net Program (PSNP). This phase of support will build on experiences and lessons learned from early phases of implementation and will seek to make key enhancements to the program under three components. Component 1: Adaptive Productive Safety Net. This component focuses on the delivery of safety net operations for core program clients. It includes: the delivery of core transfers; the implementation of the public works sub-projects by which most beneficiaries earn their safety net benefits; services for children between 1 and 5 years old; and, complementary livelihood services to enable PSNP beneficiaries to enhance and diversify their incomes. The component aims to address environmental degradation, mitigate the negative impacts of climate change, and support poor households’ adaptation to climate change. Component 2: Improve Shock Responsiveness of the Rural Safety Net. This component will support the expansion of PSNP to additional drought-prone woredas, invest in underlying systems to deliver timely and adequate assistance to households affected by drought shocks, and finance vertical and horizontal expansion of transfers in case of emergency (drought). The Component will enhance PSNP capacity to function as an integrated shock responsive social safety net, building on the Government of Ethiopia’s decision to consolidate the operational management of humanitarian food assistance and PSNP under the Food Security Coordination Directorate in the Ministry of Agriculture. This component also includes an Early Response Financing (ERF) Contingent Emergency Response Public Disclosure Component (CERC) which will facilitate an early response to emerging food insecurity crises, to be financed through the Crisis Response Window (CRW). Component 3: Systems, Capacity Development, and Program Management Support. Activities in this component aim to consolidate several important initiatives to build systems under previous phases of the PSNP. This will enhance service delivery in the areas of payments, information for operations, and program dynamism and responsiveness to beneficiaries, including taking advantage of technology to improve the program’s efficiency and governance. This component will also provide institutional support to GoE to improve overall program management. It will finance the program management budgets at the federal and subnational levels. Financing will be provided for planning, implementation, and technical oversight of program activities such as implementation of safeguards requirements and financial, commodity, and procurement management. Support will also be provided for systems assessments, audits, pilots, and impact evaluations. D. Environmental and Social Overview D.1 Overview of Environmental and Social Project Settings Ethiopia depends principally on agriculture both for its economic growth and food security. Some 80% live in rural areas with agriculture (crop production and animal husbandry) as the main source of livelihood. The government has developed a Climate Resilient Green Economy (CRGE) strategy in support of the GTP. The vision of the CRGE is to achieve middle-income status by 2025 in a climate-resilient green economy. Feb 12, 2024 Page 3 of 13 The World Bank THIRD ADDITIONAL FINANCING FOR STRENGTHEN ETHIOPIA’S ADAPTIVE SAFETY NET PROJECT (P181626) The services provided by natural resources including agriculture and livestock play a critical role for the livelihood of the majority of Ethiopia’s population. Agricultural production is mostly rain-fed and dominated by small-scale farmers and enterprises that contribute some 90% of agricultural production. Although much of the agriculture remains at subsistence level, smallholders provide a large share of traded commodities, including for exports and about 70% of the raw material requirements of agro-based domestic industries. Agriculture, relies on sustainable management of land and water. The country, however, was experiencing low and declining agricultural productivity, persistent food insecurity, and rural poverty largely attributed to land degradation. It was estimated that by the mid-1980s some 27 million ha or almost 50 percent of the Ethiopian highlands, which makes up about 45 percent of the total land area, was significantly eroded. Of this 14 million ha was seriously eroded and over 2 million ha were beyond reclamation. It was estimated that some 30,000 ha were being lost annually as a result of soil erosion, representing over 1.5 billion tons of soil removed annually by a variety of land degradation processes. However, since 2005, crop yields have been rising steadily, as various government watershed rehabilitation programs - including the PSNP Public Works program - have been implemented, and fertilizer and improved seeds have been made available to farmers. The incidence of food shortages decreased from 31% in 2005 to 10% in 2016. Nonetheless, crop yields are still low by continental standards, millions of Ethiopians still face land degradation, and due to the pressure on land, many farms are now below the size considered sufficient for sustainable smallholder farming. Thus there is still much to be done to improve the productivity of the natural resource base; many smallholder farmers still Public Disclosure need income support. The SEASN project was approved by the World Bank’s Board of Directors on November 25, 2020, and became effective on March 2, 2021. Financing allocated to the original project was US$200 million (IDA-67980 credit) and US$312.5 million (IDA-D7450 grant). An AF of US$37.5 million (IDA grant D-9030) from the Crisis Response Window (CRW) was approved on September 20, 2021, to address an already emerging drought crisis, and a second AF in 2022 amounting to US$350 million of which US$50 million was also from the CRW. Both AFs had an elevated focus on shock response and food security.  The SEASN project has made significant progress since starting operations, and “Progress Towards Achievement of PDO” and the “Overall Implementation Progress” are rated satisfactory. The PSNP has continued to provide cash and food transfers to 7,997,216 core beneficiaries of which 6,801,133 are public works participants and the remaining 1,196,083 are direct support recipients. The Government developed and endorsed an Expansion and Caseload Reallocation Plan and has undertaken a large-scale retargeting in accordance with this plan in most of the country (retargeting has not taken place in Tigray and some other districts also affected by conflict). A new e-payment service provider, the Commercial Bank of Ethiopia, has been brought on board and has almost completed account opening in woredas currently selected as e-payment woredas. With financing from the CRW Early Response Financing, 2.9 million people affected by drought received three months of shock responsive cash transfers under Component 2 of the operation. The Government of Ethiopia has made its planned financial contributions in line with commitments despite tightening fiscal space, demonstrating its ongoing commitment to the program. The disbursement rate currently stands at 52 percent (48 percent of the original financing and 100 percent of the first additional financing) Feb 12, 2024 Page 4 of 13 The World Bank THIRD ADDITIONAL FINANCING FOR STRENGTHEN ETHIOPIA’S ADAPTIVE SAFETY NET PROJECT (P181626) However, PSNP activities have been severely disrupted in Tigray, Amhara and parts of Oromiya and Afar as a result of conflict.  Implementation was paused for more than two years in Tigray due to the conflict, and has experienced interruptions in other regions. While operations have resumed in Tigray and Afar, activities in parts of Amhara and Oromiya continue to be disrupted as a result of the conflict. The AF3 will benefit poorest households, in a manner similar to the parent project. The direct beneficiaries will include the 8 million people targeted as core beneficiaries by the PSNP, and households temporarily included as a result of drought shocks. Within PSNP, there will be three types of beneficiaries: (i) Public Works (PW) Beneficiaries: rural extremely poor families with some labor capacity to participate in public works (ii) Permanent Direct Support (PDS) Beneficiaries: rural extremely poor families with no labor supply or having other constraints that limit their capacity to engage in public works and (iii) Emergency Response Beneficiaries: vulnerable households affected by drought shocks who are included in the program on a temporary basis. Direct beneficiaries of the second Additional Financing (AF2) are vulnerable households affected by drought shocks who are included in the project on a temporary basis. The third AF will target public works and permanent direct support beneficiaries as well. The Kebele Appeals Committees (KAC) are mandated to hear and address complaints regarding the delivery of support at a local level to project-affected parties. The AF3 will continue strengthening the existing Grievance Redress Mechanism to address complaints of targeted households. Discussion is underway on piloting a hotline for grievance submission, which will be financed by this third AF. Public Disclosure No significant incidents or events, including traffic-related incidents, have been reported during the implementation of the parent project, and the first and second AF. D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts The SEASN is implemented through Government systems with relevant line ministries responsible for delivering services related to their mandates. Overall coordination and management of the project is the responsibility of the Food Security Coordination Office (FSCO) of the Ministry of Agriculture (MoA). The FSCO coordinates all aspects of the SEASN, ensures timely transfer of resources to regions, and coordinates and oversees the on-farm and off-farm livelihoods-related services under the program. The FSCO Social Development Unit will be responsible for coordinating and overseeing the planning, implementation and monitoring of the social management instruments, and will work in close collaboration with the Women, Children and Youth Affairs Directorate of the MoA , the Ministry of Women and Social Affairs (MoWSA), and the Natural Resources Management Directorate (NRMD) of the MoA to address social issues under the AF3. Other key stakeholders include: Feb 12, 2024 Page 5 of 13 The World Bank THIRD ADDITIONAL FINANCING FOR STRENGTHEN ETHIOPIA’S ADAPTIVE SAFETY NET PROJECT (P181626) • The MoWSA, which under the parent project was taking on an increasing role in the Permanent Direct Support component, are signatory to a tripartite MoU that includes FSCO and Ministry of Health for the joint coordination, implementation and monitoring of linkages for the program’s social services component. • The Public Works Coordination Unit (PWCU) in the Natural Resources Directorate (NRMD) of the MoA will coordinate and support the PW component. • The Livelihoods Coordination Unit (LCU) in the FSCO will coordinate and support the Livelihoods component. • The Ministry of Finance will be responsible for overall financial management and reporting and is responsible for the channeling of SEASN resources to the implementing agencies at federal and regional levels. It also commissions the audits of the cash resources for the parent project. • The National Disaster Risk Management Commission has overall responsibility for the inter-sectoral coordination of Disaster Risk Management activities including the consolidation and dissemination of early warning information Based on the December 2023 joint implementation support (JIRS) mission review, there has been some progress in capacity building: (i) Trainings have been provided on gender mainstreaming, GBV Prevention and Response and GRM for 258 stakeholders from regional, zonal and woreda levels in post-conflict affected regions (ii) ESMF training material revision and preparation have been carried out in order to conduct the TOT training for regional E & S specialists; (iii) With the support of the task team, MoA is updating the Environmental & Social Monitoring & Reporting System. Public Disclosure On the other hand, there have been staffing gaps and resource constraints that have limited the roll-out of the ESMF. The E & S specialists for the program including the national level Social Development Specialist, GRM specialist and Gender and GBV focal persons will work closely with regional-assigned Gender and Social Development experts, as well as woreda-level Social Development Experts, to oversee the activities of the AF3. A needs-based budget is planned to be allocated to address budget constraints faced in ESMF capacity building activities. Orientations are being provided to the staff based on the ESMF, and more extensive training was facilitated as per the ESMF in December 2023. The Environment, Social Development, Gender specialists and GRM focal person are all onboard. The MoA will assign the second Social Specialist as per the program needs and commitments. II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) A.1 Environmental Risk Rating A.2 Social Risk Rating Feb 12, 2024 Page 6 of 13 The World Bank THIRD ADDITIONAL FINANCING FOR STRENGTHEN ETHIOPIA’S ADAPTIVE SAFETY NET PROJECT (P181626) B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1 Relevance of Environmental and Social Standards ESS1 Assessment and Management of Environmental and Social Risks and Relevant Impacts Although the subprojects are aimed at enhancing the environment and increasing the productive capacity of the natural resource base, they also have the potential for adverse environmental impacts on human populations or the biophysical environment if their location, design or construction do not follow good environmental practices. Based on the experience of the PW component in the previous phases of the PSNP, these environmental risks arise principally from site-specific impacts such as (i) disturbance of environmentally sensitive areas, wildlife habitats or downstream ecosystems by soil-and-water conservation (SWC) subprojects, including flood control, which, despite being intended to improve the environment, might be badly designed or sited; (ii) vegetation removal, erosion or pollution caused by poorly designed or located social infrastructure such as community roads or health posts; (iii) salinization, water logging or pollution resulting from small-scale irrigation subprojects including the use of agro-chemicals; (iv) disruption of downstream ecosystems or water flows by water subprojects such as small dams or community ponds. The ESMF will be used to manage any potential adverse environmental risks of the PW. The environmental risks of the micro-activities of the household-level Livelihoods sub-component arise principally from the potential cumulative effects of large numbers of households in the same kebele or woreda all undertaking the same activities. These environmental risks are related to impacts such as (i) degradation caused by overgrazing resulting from animal-fattening; (ii) loss of endemic tree species due to tree-cutting for the manufacture of furniture or artefacts; (iii) pollution from poultry keeping using drugs or chemicals; (iv) deforestation and reduction in local Public Disclosure energy sources due to trading in fuelwood, poles or charcoal; (v) deforestation due to a reduction in energy resources resulting from the processing of agricultural residues for animal feed production. The environmental risks of the livelihood sub-component will be managed through the woreda level Strategic Environmental and Social Assessment. In both case, the third AF will use the ESRM instruments developed for the parent project. ESMF training and capacity building is being rolled out, which will strengthen the implementation of the ESRM instruments for the third AF. The potential social risks include exclusion from project benefits and SEA/SH during targeting. The project is applying clear targeting criteria and SEA/SH code of conduct is prepared for the workers and shared to implementing regions. Kebele Appeal Committees (KAC), which are the local Grievance Mechanisms, are in place to address project-related grievances, including those related to targeting and SEA/SH. The Behavioral Change Communication material and job aid for the project has also been updated to encompass GBV prevention and response content. However, budget constraints have posed a challenge to providing the required orientations and training to project staff and the community. The AF3 is expected to improve this gap with better allocation of resources to facilitate the ESMF implementation. Other risks include Child labor under PW, and security-related risk in conflict-affected areas. Beyond the project, workers and community in the conflict-affected areas are vulnerable to SEA/SH and other Health and Safety risks, due to the ongoing conflicts in different regions of the country. The existing ESF instruments which are contained within the ESMF, such as the GBV Action Plan, Labor Management Procedure, Security Management Plan and other E & S risk management procedures, will continue to be applied under the third AF. ESS2 Labor and Working Conditions Relevant Feb 12, 2024 Page 7 of 13 The World Bank THIRD ADDITIONAL FINANCING FOR STRENGTHEN ETHIOPIA’S ADAPTIVE SAFETY NET PROJECT (P181626) ESS2 applies to the project principally in respect of project beneficiaries who will work on the PW program in return for transfers in the form of cash or food. These fall within the ESS2 category of “community workers”. ESS2 also applies to: - supervisors or skilled workers who are (temporarily) employed directly by the local government office to support the site works. They are also “direct workers”; - people employed by primary suppliers, such as those bringing cement and other materials on site. They fall within the ESS2 category of “primary supply workers”. - “contract workers” engaged on a site in which the labor-intensive work actually constitutes one component of the subproject (rather than the entire subproject). Where government civil servants known as Development Agents (DAs) are working in connection with the project, they will remain subject to the terms and conditions of their existing public sector employment agreement or arrangement. ESS2 applies to DAs only in respect of provisions for protecting the work force and Occupational Health and Safety OHS). The PW subprojects will be small, labor-intensive works engaging community workers with hand-tools, working on subprojects such as soil-and-water conservation, afforestation, terracing, clearing and levelling community roads, and working on small social infrastructure, without any heavy equipment on site. The Borrower has prepared Labor Management Procedures (LMP) proportional to the activities, risks and impacts, setting out detailed procedures to ensure compliance with the standards of ESS2 for all labor categories involved The ESMF includes an OHS Plan, which requires the DA to ensure that all required measures for health and safety are effective on site, including labor management, the exclusion of child labor, exemption of pregnant women throughout the entire pregnancy, the provision of first-aid boxes, and the reporting of accidents and injuries. OHS measures will be Public Disclosure specified in contracts for Supervision Engineers and Contractors and included in the Workers’ Code of Conduct. The ESMF also contains a detailed procedure for the Grievance Redress Mechanism as applicable to PW, in order to ensure that work-place concerns can be voiced, complaints made about problems arising, and that such issues be expeditiously addressed. To prevent and respond to SEA risks at the work-place, the beneficiaries will be sensitized on the risks and prevention of GBV/SEA. The project Behaviour Change Communication Job Aids have been updated to address GBV prevention and response issues.In addition, provision of equal employment opportunities, promotion of non-discrimination and Inclusion of specific and binding clauses in all the codes of conduct and contracts will be applied. To address overall GBV/SEA risks, the borrower has developed a GBV/SEA Prevention and Response Action Plan based on the findings of the program’s GBV Risk Assessment. The action plan, includes developing SEAH messaging, code of conduct and training package for staff, including communications that challenge social norms and attitudes that justify GBV in the program Behavioral Change Communication package, developing and rolling out of the plan for woreda referral service mapping, and the potential reporting and referral linkage process. Moreover, GBV and SEAH training will be part of the PSNP capacity building core training which is being applied. The parent project LMP will be used for the AF3. ESS3 Resource Efficiency and Pollution Prevention and Management Relevant Most PW irrigation schemes will be micro-scale, but some can be expected to incorporate a small dam, and will have the potential for the use of agrochemicals, with their associated risks of water and soil pollution, and risks to humans arising from potential mishandling and the absence of protection. Although the irrigation subprojects are not expected to have Feb 12, 2024 Page 8 of 13 The World Bank THIRD ADDITIONAL FINANCING FOR STRENGTHEN ETHIOPIA’S ADAPTIVE SAFETY NET PROJECT (P181626) significant risk profiles, based on their small scale, the ESMF includes procedures for screening small-scale irrigation subprojects to identify those with potential impacts on surface- and ground-water, including assessment of current and planned uses of water within the watershed, assessing short- and long-term cumulative impacts on communities, other users, and the ecosystem services. The Project prohibits the use of project funds to purchase pesticides or fertilizers. Nonetheless, some farmers may choose to purchase and use agro-chemicals, so the ESMF requires woreda staff to provide information and training on acceptable and unacceptable pesticides, and will encourage farmers to comply with GoE policy and international standards of use and storage. The ESMF includes the GoE’s Guide to Integrated Pest Management, which the ESMF Screening procedure will oblige the DA to invoke. This will ensure that the correct guidance is utilized in all subprojects likely to involve the use of agrochemicals. The potential key environmental health and safety (EHS) impacts and risks include: transport related (traffic, accidents, fuel use), vehicle related waste management (used oil, batteries, etc.); storage and distribution facilities (e.g., warehouses, etc.) including potential fire and safety (including control of dust), pest control (rodents, insects), material use (energy, water), worker OHS (use of equipment, heavy lifting, etc.), waste management, and community safety associated with food transport and distribution. The Guidelines in use by the PSNP for Dam Safety, Medical Waste Management, and Integrated Pest Management, which are annexed to the Project ESMF, will be used for the AF. ESS4 Community Health and Safety Relevant While each watershed may have around three to four subprojects implemented annually, subprojects are expected to Public Disclosure operate for many years. Thus within a few years, and during the life of the Project, there will be many subprojects implemented in a typical watershed (or rangelands unit). The risks to community health and safety arise principally from: (i) Occupational hazards while working as a community worker on a subproject construction site; (ii) Risks to community members inadvertently on, or in the vicinity of, a PW construction site; (iii) Risks to all and any community members from accidents or failures of a subproject during operations. The risks to community workers and those in the vicinity are covered by the Occupational Health & Safety Plan, supplemented by the provisions of the LMP under ESS2 above. Measures to avoid health risks from agro-chemical pollution and medical waste during subproject operations are covered by the procedures under ESS3 above. The risks from small dams will be addressed by: ￿ Ensuring that all dams in excess of 15 meters in height or impounding more than 3mn. cu. m. are eliminated during the ESMF Screening procedure . This provision will be strengthened by a requirement for the woreda Environmental Expert to personally inspect the site and design of all dams before countersigning the ESMF Screening form; ￿ Ensuring through the ESMF procedure that all small dams are designed by a qualified engineer, constructed under the supervision of a qualified contractor, and follow the Guide on Safety of Small Dams in the ESMF, as well as Good International Industry Practice; ￿ Ensuring through environmental and social assessment that there will be no, or negligible, risk of significant adverse impacts due to potential failure of the dam structure to local communities and assets, including assets to be financed as part of the proposed project Feb 12, 2024 Page 9 of 13 The World Bank THIRD ADDITIONAL FINANCING FOR STRENGTHEN ETHIOPIA’S ADAPTIVE SAFETY NET PROJECT (P181626) ￿ Putting in place an Emergency Preparedness Plan to be followed in the event of dam failure. This will be the responsibility of the woreda Water Office, and will be prepared in line with the requirements set out in the Guide on Safety of Small Dams. ESS4 is also relevant to provisions for gender-based violence (GBV). The borrower conducted a GBV Risk Assessment and a GBV Action Plan The main findings include potential SEA risks linked to sexual favors for registration, domestic violence in some areas due to disagreement between spouses on how to use program transfer, lack of procedure for complaints related to GBV/SEA, awareness gap on GBV/SEA and implementation capacity of the borrower. There has been some progress in the implementation of GBV Action Plan. Training on GBV Prevention and response was provided by client Ministry of Agriculture together with Women and Social Affairs and Donor Coordination and Bank team. The targeted stakeholders were implementers in post-conflict areas (Tigray, Amhara and Afar). In the revised Behavior Change and Communication framework for the program, the client has strategically incorporated GBV prevention and response related messaging. Furthermore, within the revised Gender and Social Development manual, the training component has been updated to integrate GBV prevention and response. GBV service providers mapping was also conducted in three regions namely Oromia, Amhara and Somali regions. Despite the development of tools and the provision of ToT as well as service mapping, the cascading of such initiative to all implementation regions was hindered due to insufficient funding. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant The construction of subprojects such as small dams, community roads, and social infrastructure are typically built on Public Disclosure government land. However, it can happen in rare cases that a subproject uses a minor portion of community or even privately-used land. Due to the limited management capacity at kebele (village) level, and the large scale of the PW program, subprojects involving involuntary loss of land or assets in any form, or any form of resettlement, are prohibited under the project, and will be eliminated at ESMF Screening stage. However; if that would change during the lifetime of the project, clearance would be sought from the Association including the preparation of a Resettlement Policy Framework (RPF) in line with requirements outlined in ESS5.Donation of assets will be permitted only on the basis that the donation is voluntary, and limited, in line with ESS5. In this regard the Borrower has developed a Voluntary Land Donation (VLD). No private land acquisition is reported so far . This VLD procedure, which is part of the ESMF, will be applicable to this AF3. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources The design of the PW program, which is limited to community subprojects implemented in inhabited areas, together with the PW subproject ESMF Screening procedure, is designed to eliminate any PW subproject or identify project design solutions that would avoid negative impacts on forests, natural or critical habitats, or protected areas of high biodiversity value. For those subprojects where such impacts are unavoidable, and subproject-specific ESIA will identify potential impacts and propose relevant mitigation measures to minimize such impacts. Environmental & Social monitoring, including the 6-monthly PW and LH Reviews, will monitor impacts of PW subprojects to ensure that the standards of ESS6 are maintained, including the sustainable management of living resources and prohibition on the introduction of alien species. Feb 12, 2024 Page 10 of 13 The World Bank THIRD ADDITIONAL FINANCING FOR STRENGTHEN ETHIOPIA’S ADAPTIVE SAFETY NET PROJECT (P181626) ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Relevant Local Communities The woredas in Afar, Somali, some part of Southern and Oromia regions cover pastoralist communities which are home for historically underserved groups. To address the needs of underserved communities, the Enhanced Social Assessment and Consultation (ESAC) and related Social Development Plan have been prepared, annexed to the ESMF, disclosed, adopted and implemented as required in the ESCP. The outcome of the ESAC has been incorporated into various aspects of the SEASN design and implementation guidelines . The findings on social issues and challenges on historically underserved (pastoral) and other communities include: • Limited access to Muslim-friendly financial services • Remote nature of pastoralist communities and limited access to social services • Exclusion of newcomers in Afar and Somali who may not belong to the extended family lineage or even the clan which controls the territory • Increased unmet demand in pastoral areas for livelihoods support services • The type of food transfer is not appropriate to the food habit of the pastoral communities • Risk of mismanagement or misuse of transfer in households , • Potential inaccessibility of payment and food distribution centers for vulnerable groups • Inclusion and exclusion Error and lack of trust for the GRM In order to address these issues, the Project integrated measures such as working with financial service providers to Public Disclosure develop Muslim-friendly financial services, contributing to the improvement of social services in pastoral areas by constructing/renovating structures which provides social services using PW labour, improving accountability and capacity in pastoral areas for implementing the project’s targeting criteria, and conducting GRM annual reviews. The project will also roll out its livelihoods-strengthening as well as transfer activities in the pastoral regions, by facilitating consultations as part of the annual planning process, and contextualizing them to the needs and realities of the area. For pastoralist communities, the transfers are being made as per the plan submitted by regions which considered preference of pastoral communities. To avoid the potential risks of mismanagement or misuse of transfers, joint (husband and wife) client cards and joint bank accounts are being put in place. The proximity of food distribution and payment centers to the clients is also considered when they are set up. Furthermore, the GRM ,targeting and Gender and Social Development guidelines have been developed and included in the PIM. These will continue to be applied in the AF3. ESS8 Cultural Heritage Relevant Having a very ancient civilization that has remained in more or less the same geographic area throughout, Ethiopia is exceptionally rich in tangible cultural heritage, particularly in the form of both natural and human-made religious sites, and undocumented as well as documented archeological sites. There is thus a risk of PW subprojects involving earth- moving (such as dam construction, quarrying and small-scale irrigation subprojects) encountering, disturbing and possibly destroying, cultural heritage. No PW subprojects would involve sedenterization, as this would be regarded as resettlement. Impacts on intangible cultural heritage arising from the physical works of a PW subproject would be very Feb 12, 2024 Page 11 of 13 The World Bank THIRD ADDITIONAL FINANCING FOR STRENGTHEN ETHIOPIA’S ADAPTIVE SAFETY NET PROJECT (P181626) rare, since the ESMF is designed to ensure that the physical works do not impinge on cultural heritage (ESS8, para. 7). Nonetheless, the occurrence any such impacts on intangible cultural heritage would be addressed under the social mitigating measures of the ESMF screening procedure. These risks to cultural heritage will be addressed by the Project as follows: - Subprojects likely to be implemented within, or in the vicinity of, a known cultural heritage site will be eliminated in the PW ESMF Screening process; - Unexpected encounters with cultural heritage artefacts during subproject implementation will be addressed by a Cultural Heritage Chance-Finds Procedure. The Cultural Heritage Chance-Finds Procedure forms part of the ESMF. ESS9 Financial Intermediaries Not Currently Relevant No financial intermediaries are expected to feature in the AF. ESS10 Stakeholder Engagement and Information Disclosure Relevant The SEP has been implemented by the Borrower in the past. So far, various stakeholder engagement activities have been undertaken. These include project launching workshops at national and regional level, preparation and distribution of communication materials on targeting criteria, and procedures and consultations at community level on full targeting and annual PW planning. Specific to Grievance Mechanism (GM), the Project has an in-built GM that is operational in every SEASN-implementing Public Disclosure Kebele, through the Kebele Appeals Committee (KAC). One of the findings of the 2022 GM annual review was that there is no systematic record keeping of the KAC at some kebeles. In some cases, reports on appeals and decisions were not submitted regularly to the woredas and the regions. In order to address this issue, GM reporting is included in the program Management Information System (MIS). There is also a plan to finance a pilot hotline for grievance submission, as part of AF3. The SEP updated during the preparation of the AF3 will continue to be implemented and address related issues. B.2 Legal Operational Policies that Apply OP 7.50 Projects on International Waterways Yes OP 7.60 Projects in Disputed Areas No B.3 Other Salient Features Use of Borrower Framework No Use of borrower framework is not being considered Feb 12, 2024 Page 12 of 13 The World Bank THIRD ADDITIONAL FINANCING FOR STRENGTHEN ETHIOPIA’S ADAPTIVE SAFETY NET PROJECT (P181626) Use of Common Approach No Although there are development partners financing the AF, they have agreed to use the ESF for managing the E&S issues of the project. C. Overview of Required Environmental and Social Risk Management Activities C.1 What Borrower environmental and social analyses, instruments, plans and/or frameworks are planned or required during implementation? The ESCP and SEP has been updated as part of the AF3 and will be applied during AF3. Furthermore ,with the activities being similar with the parent project, the ESF instruments namely ESMF inclusive of GBV action plan, Security Management plan, Labour Management Procedure, Voluntary Land Dentation procedure and other E & S risk procedures will continue to be applied to the third AF. III. CONTACT POINTS World Bank Task Team Leader: Christabel Ewuradjoa Dadzie Title: Senior Social Protection Specialist Email: cdadzie@worldbank.org Public Disclosure IV. 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 V. APPROVAL Task Team Leader(s): Margaux Laurence Vinez, Christabel Ewuradjoa Dadzie ADM Environmental Specialist: Tamru Demsis Temam ADM Social Specialist: Gibwa A. Kajubi Practice Manager (ENV/SOC) Helene Monika Carlsson Rex Cleared on 12-Feb-2024 at 08:36:54 GMT-05:00 Safeguards Advisor ESSA Martin Henry Lenihan (SAESSA) Concurred on 12-Feb-2024 at 16:02:58 GMT-05:00 Feb 12, 2024 Page 13 of 13