The World Bank DRC Water Supply and Sanitation Access Program (P178389) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 03/30/2023 | Report No: ESRSA02689 Mar 30, 2023 Page 1 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Congo, Democratic EASTERN AND SOUTHERN P178389 Republic of AFRICA Project Name DRC Water Supply and Sanitation Access Program Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Water Investment Project 3/28/2023 6/12/2023 Financing Borrower(s) Implementing Agency(ies) Ministry of Finance Ministry of Hydraulic Resources and Energy, Ministry of Environment and Sustainable Development Public Disclosure Proposed Development Objective To increase access to basic drinking water supply and sanitation services in selected provinces of DRC and to strengthen the capacities of the public and private sector for water and sanitation service delivery Financing (in USD Million) Amount Total Project Cost 400.00 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 Democratic Republic of Congo (DRC), the largest and third most populous country in Sub-Saharan Africa, is rich in natural resources. With a total land area of 234 million ha, DRC’s size is equivalent to that of Western Europe. It has a low population density of 16.1 person per km2 and an estimated 89.6 million inhabitants , of which 54.4 percent live in rural areas. DRC is one of the world’s poorest countries, with a per capita gross domestic product (GDP) of US$545, roughly one-third of the Sub-Saharan Africa average (US$1,499). Based on the international standard of living on less Mar 30, 2023 Page 2 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) than US$1.90 a day, 73 percent of households live in poverty (2020). As of 2020, 48 million (53 percent) people lack basic water access, 76 million lack basic sanitation (84 percent), and 73 million lack basic hygiene services (81 percent). There are large urban-rural disparities in access to drinking water supply: rural basic water access is 22 percent and while in urban areas it is 74 percent. Similar, for sanitation, the open defecation rate in rural areas is 18 percent and just 4 percent in urban areas, and basic sanitation access is 11 percent in rural versus 22 percent in urban areas. Although DRC is rich in water resources, water security is hampered by lack of infrastructure, poor governance, weak institutional capacities for sustainable water and sanitation (WSS) service delivery and lack of investments in lagging rural and peri-urban areas. The water sector institutional framework is highly fragmented and poorly coordinated. The Ministry of Water Resources and Electricity (Ministère des Ressources Hydrauliques et Electricité, MRHE) is the key government institution as the main custodian of the implementation of the 2015 Water Law. Although foreseen in the law, a national policy on water supply has not yet been approved . Under the tutelage of the Ministry of Rural Development (Ministère de Développement Rural, MDR) the National Office for Rural Hydraulics (Office National d'Hydraulique Rural, ONHR) assumes tasks for the development of rural water systems and support to rural water committees, although this entity has no mentioning in the Water Law. The 2015 Water Law also introduced new sector institutions, namely the Water Regulatory Agency (ARSPE, Autorité de Régulation du Service Public de l’Eau) responsible for economic and service level regulation and the development of water public private partnerships and the Congolese Water Authority (OCE, Office Congolais des Eaux) responsible for water resources management (WRM), although both entities have not yet been established operationally. The Water Law - in line with the decentralization process - assigns the responsibility for water and sanitation (WSS) to provinces and opens up service provision to public, private and community-baed providers that operate under provincial service delegation agreements and oversight. This process is accompanied by the restructuring of the national water utility Public Disclosure (REGIDESO), that in the long-term intends to form autonomous subsidiaries at regional/provincial level to operate provincial-owned WSS assets. On the sanitation side, a new legislative framework and roadmap for implementation needs to be developed to address fragmentation and lack of clarity in mandates along the sanitation service chain. The government is addressing basic on-site sanitation access through its National Roadmap for Eradicating Open Defecation, led by the Ministry of Environment and Sustainable Development (Ministère de l’Environnement et Développement Durable, MEDD), specifically its Sanitation Department (Département d'Assainissement, DAS). In doing so, it collaborates with the Ministry of Public Health (MSP, Ministère de Santé Public), notably its department for Hygiene and Public Health (Direction Hygiène et Salubrité Publique, DHSP). The Government of DRC (GoDRC) has prepared a national program to improve access and sustainability of WSS services. The National Program for Water, Sanitation and Hygiene 2020-2030 (Programme National d’Eau, Hygiène et Assainissement, PNEHA), lays out the policy priorities and desired investments, setting ambitious access targets of 80 percent for urban water, 60 percent for rural water, 70 percent for sanitation and universal access in schools and health centers by 2030. The proposed Water Supply and Sanitation Access Program (PASEA, Programme d’Accès aux Services d’Eau et d’Assainissement). PASEA uses a long-term Multi-Phase Approach (MPA) aiming to address pressing institutional challenges, create opportunities for the private sector, and reducing access gaps in water supply and sanitation services in rural and peri-urban areas. The MPA will allow for a gradual roll out of investments across nine CPF-priority provinces, with increasing responsibilities at provincial level for the full implementation of the program. While phase 1 and 2 are intended as Investment Project Financing (IPF) to build the foundational implementation capacities of the provincial governments, the third and fourth phase of the MPA, with sufficient risk mitigation measures, could potentially be implemented as a Program for Results (PforR) to consolidate strengthening of country systems and scale-up results across nine priority CPF provinces. Mar 30, 2023 Page 3 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) The Program Development Objective (PrDO) is to scale-up access to basic drinking water supply and basic sanitation services in selected provinces of DRC and strengthen institutions for water and sanitation service delivery. The Project Development Objective (PDO) for phase 1 is to increase access to basic drinking water supply and sanitation services in selected provinces of DRC and to strengthen the capacities of the public and private sector for water and sanitation service delivery. Phase 1 focusses on the provinces of Kasai, Kasai Central, Kasai Oriental, and Kwilu. Phase 2 focusses on Ituri, Kongo Central, Lomami, Nord Kivu, and Sud Kivu. Phase 3 and Phase 4 scale-up implementation across all nine provinces, presumably leveraging domestic financing and potential donor co-financing. The MPA is expected to build a solid implementation foundation that will allow further acceleration through a nation-wide scale-up program with provincial-led implementation model. PASEA is fully aligned with the objectives laid out in the WBG’s DRC Country Partnership Framework (CPF) for fiscal year 2022–2026 discussed by the Board on February 23, 2022 (Report No. 168084-ZR). It will promote public and private investments in critical infrastructure to increase people’s access to basic infrastructure services (objective 2.2), strengthen transparency and governance (objective 3.2), and strengthen the foundations for inclusive economic diversification and private sector development (objective 3.3). As per the CPF focus on addressing fragility and conflict, the MPA will target provinces affected by conflict and violence, where investments in basic water supply and sanitation infrastructure will increase access, support human capital outcomes, strengthen the social contract, and unlock private sector engagement in the delivery of WASH products and services. The proposed project, phase 1 of the MPA - will focus on high-priority provinces (Kwilu, Kasai, Kasi Central, Kasai Oriental) that were identified based on several criteria, including: the rate of access to water and sanitation, the total Public Disclosure number of people without access to basic water services, poverty levels and stunting, priority provinces under the Country Partnership Framework (CPF) and synergies with other Bank operations such as in electrification, governance, health and nutrition, and education. The targeting of interventions in decentralized territorial entities (Entité Territoriale Décentralisé, ETDs), such as communes and secteurs, is based on criteria such as people without services, level of accessibility, the presence of larger villages and growth centers, and opportunities for clustering to increase efficiency of implementation. Within each ETD, an area-wide approach will be used to create significant impact. A total of 3 million people is expected to be served with basic water supply, and 2 million with basic sanitation under phase 1. The project is proposed to have the following components: Component 1: Increasing access to and capacities for drinking water supply service delivery (IDA: US$ 255 million) This component supports the government to implement water sector reforms at national level, improve governance and public sector capacities at provincial level. It will develop infrastructure for water supply services and strengthen the capacity and performance of domestic private, not-for- profit operators, and of REGIDESO provincial directorates and will deliver qualified water / solar pumping technicians for the market. It consists of the following subcomponents: - Subcomponent 1.1: Increasing access to basic water supply in rural and peri-urban areas (IDA US$ 209 million) will finance infrastructure development and related preparation, construction, and supervision costs to increase access water services. This subcomponent includes: i) construction of new water supply systems and expansion and rehabilitation of existing water supply systems including water source intake (boreholes), production facilities, storage/reservoirs, conveyance and distribution networks, including water kiosks, household connections, bulk and pre-paid meters, ii) the construction and installation of solar energy systems with back-up generator sets to power Mar 30, 2023 Page 4 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) water systems where no electricity grids are available; iii) preparation of technical, environmental and social studies, design and bidding documents (including Design-Build-Operate), construction supervision of water subprojects, as well as implementation support for resettlement action plans; and iv) technical assistance to ONHR and for the establishment of Drinking Water User Association (Association d'Usagers de Réseau d'Eau Potable, ASUREPs) - Subcomponent 1.2: Strengthening the private and not-for-profit sector for water supply (IDA US$ 25 million) will include market enabling measures to increase private sector involvement, technical assistance, capacity building, equipment for private and not-for-profit water operators and result-based financing to extend service perimeters. This subcomponent includes: (i) transaction advisory services to the Regies Provinciales de Service Public d’Eau for structuring PPP contracts; (ii) technical assistance to the Regies Provinciales for preparing service delegation contracts and tariff analysis; (iii) technical assistance and equipment for local private and not-for-profit operators on system operations, business planning, and environmental and social compliance during implementation; (iv) result- based grants to eligible private and not-for-profit operators to expand services in unserved areas and associated platform for monitoring of results; (v) technical assistance and workshops for local solar energy enterprises to deliver maintenance services to water operators. - Subcomponent 1.3 Developing public sector capacity for scaled-up water services (IDA US$ 21 million) will support policy development and institutional strengthening of public entities at national and provincial levels, help operationalize and capacitate Regies Provinciales to fulfill their functions, and prepare for scale-up of investments under phase 3, and develop qualified human resources for operation and maintenance of solar pumping systems. It includes: (i) technical assistance to develop a national water policy, plan for ONHR restructuring, a medium-term financing plan, annual reviews, and related workshops; (ii) public communication and citizen engagement campaigns to improve local management of water systems; (iii) technical assistance to ARSPE for economic regulation and Public Disclosure governance framework for ASUREPs and private sector operators; (iv) technical assistance to Regies Provincials to recruit and train relevant staff, develop a provincial governance framework for managing service delegation contracts, establish a maintenance and capital development fund, develop and install a MIS system for performance of operators (linked to a national MIS), and prepare related operational manuals; (v) equipment, vehicles, training and workshops, and operational costs for four Regies Provincials; (vi) equipment and technical assistance to four provincial divisions of ONHR and to REGIDESO provincial antennas (Kwilu, Kasai, Kasai Oriental) for performance improvement; (vii) installation of hydromet and groundwater monitoring points in the Kasai basin, groundwater studies and preparation of sub-basin water management plans; (viii) preparation studies for the four provinces to scale-up of water supply investments in subsequent phases; (ix) development and implementation of vocational training and higher education programs, including equipment, support for internships and stipends, specifically encouraging females, on solar-pumped water systems Component 2: Increasing access to and capacities for sanitation service delivery (IDA: US$ 115 million) This component supports national and provincial government to further develop the legislative, institutional and planning framework for sanitation, while focusing investments on increasing access to basic sanitation, and improving WASH in schools and health centers. The component develops competencies of public and community actors to implement behavior change programs to end open defecation, trains professionals and sanitation technicians, strengthens the supply chain and private sector for sanitation& hygiene products and services. It includes the following sub-components: - Sub-component 2.1: Increasing access to sanitation and hygiene in rural and peri-urban areas (IDA US$ 58 million) will finance the implementation of the roadmap to end open defecation, while adopting differentiated approaches for rural and (peri-) urban areas. In rural areas, Community-Led Total Sanitation (CLTS) to achieve open defecation free (ODF) villages, is combined with material support to communities to construct more durable solutions, and in peri- Mar 30, 2023 Page 5 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) urban an adapted CLTS approach is combined with sanitation marketing activities and he use of te-vouchers that allow households to receive discounts on toilet installation. The sub-component includes: (i) implementation cost and training for local cadre of DAS/DHSP for CLTS and training for masons; (ii) result-based compensation for facilitator teams and village/quartier-level community mobilizers (iii) construction materials for durable latrines (materials for concrete slabs, toilet pans, reinforcement or pit lining in unstable soils); (iv) e-vouchers for toilet installation (peri- urban only); (v) technical assistance for voucher management entity (urban); (vi) technical assistance for business coaching of toilet installation enterprises (urban only); (vii) technical assistance to support CLTS implementation, supervision of rural material delivery, ODF celebration; (viii) feasibility, design and preparation studies for FSTPs, supervision costs of construction and implementation support for resettlement action plan; (ix) civil works for fecal sludge treatment plants (FSTPs), including works required for producing reusable products. - Sub-component 2.2: Improving water, sanitation and hygiene in institutions (IDA US$ 35 million) will improve access to WASH facilities in selected schools (400) and health centers (200) in the selected ETDs (sites with water supply investments), establishing O&M arrangements for sustainability of WASH facilities and empowering girls to effectively manage their menstruation. Technical designs for the facilities will be inclusive and responsive to the needs of women and girls and people living with disabilities. The subcomponent includes: (i) technical design and supervision costs for the construction and/or rehabilitation of water supply connections (or water points) for health centers and schools, toilet facilities for students and teachers, and handwashing facilities; (ii) new construction and/or rehabilitation of the WASH facilities in schools and health centers; (iii) technical assistance and studies to improve the sustainable operation of WASH facilities in schools and health centers, including improving monitoring and feedback systems; (iv) implementation costs for the MESTP-Department of Infrastructure Services (MESPT, Direction National de Construction) and the MESTP-Department of Life Skills Education (DEVC, Direction Education Vie Courante) to Public Disclosure supervise construction, set-up of O&M committees and support hygiene activities; (v) training and workshops for O&M committees and follow-up support to ensure sustainable operations; (vi) technical assistance to deliver menstrual hygiene extra-curricular activities (schools/communities) and supply of reusable hygienic pads. -Sub-component 2.3: Strengthening the private sector for sanitation and hygiene (IDA US$ 7 million includes market enabling and catalyzing measures to support capacity development of private sector involvement in delivery of sanitation and hygiene products and services for peri-urban and rural growth centers. The subcomponent includes: (i) development of marketing and behavior change communication strategy and tools, and the development of business models and supply chains; (ii) training and workshops for the participating sanitation enterprises under the e-voucher toilet installation scheme; (iii) catalytic grants for sanitation and hygiene enterprises to introduce new products and services (such as manufacturing and sales of plastic toilet pan production, toilet construction, sludge emptying services, manufacturing and sales of reusable hygiene pads); (iv) technical assistance for the management of the catalytic grant program; (v) technical assistance to prepare contracts for sludge emptiers; (vi) sludge emptying vehicles and protective equipment for emptiers - Sub-component 2.4: Developing public sector capacity for scaled-up sanitation (IDA US$ 15 million) will advance institutional reforms and build public sector capacity for sanitation service delivery at national and provincial level and prepare for scale-up of investments under phases 3. It will deliver vocational training and higher education program for sanitation sector jobs, with a special focus to attract women. The subcomponent includes: (i) technical assistance for the development of implementation decrees/by-laws for the foreseen Sanitation Law , workshops and materials to support dissemination; ii) technical assistance to develop provincial legislative and institutional framework for urban sanitation, regulations and standard contracts (for FSTP operators, licensing for sludge emptiers); (iii) technical assistance to prepare CWIS plans for four cities, including a prioritized investment plan and implementation of measures; iv) equipment and training for city sanitation departments to support the CWIS pilots; v) technical assistance to develop national rural sanitation MIS and support use in four provinces; vi) equipment, workshops and Mar 30, 2023 Page 6 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) training for provincial DAS/DHSP on governance, regulations, CWIS, ODF roadmap; viii) preparation studies for the four provinces to scale-up of sanitation investments in (peri-) urban plans, for phase 3; (ix) development and implementation of vocational training and higher education programs on sanitation and environmental engineering, including equipment/civil works for training center, support for internships and stipends, specifically encouraging females to participate. Component 3: Program Management and Learning (IDA: US$ 30 million) This component will finance MPA-phase 1 project management support for the implementation, coordination, monitoring and evaluation of project, learning activities and knowledge exchanges, capacity development for project management and implementation through a Young Professional program, and the preparation costs for MPA-phase 2 project in additional provinces. It includes: (i) operation of the Project Coordination Unit (PCU) through the provision of technical assistance, training, goods, and financing of operating costs, including technical and financial audits; (ii) support to relevant national entities with a key-role in the coordination and supervision of the Project (iii) establishment and operation of the Provincial Project Implementation (PPIUs) in Kasai, Kasai Central, Kasai Oriental and Kwilu; (iv) support to provincial technical entities with a role in the provincial coordination of the project through the provision of training, goods and financing of operating costs; (v) project results monitoring platform, including Geographic Information System and remote monitoring applications; (vi) costs for ensuring accessible grievance redress mechanism (GRM), for addressing GBV awareness and survivor support services, for implementing Indigenous People Plan; (vii) learning exchanges among provinces and relevant knowledge exchanges abroad, (viii) design, implementation and monitoring of a Young Professional program for fiduciary, environmental, social and technical staff within PPIUs ; (ix) consultant services for the Independent Verification Agent (IVA) for performance based Public Disclosure conditions under the contract; (x) preparation costs for MPA-phase 2, including operating costs, vehicles, and coordinators in the PPIUs for the phase 2 provinces; preparation studies (baseline, feasibility, technical, social and environmental) and consulting costs to prepare all environmental and social framework instruments for phase 2 Component 4: Contingency Emergency Response Component ($0 allocated). A Contingent Emergency Response Component (CERC) with zero allocation may be used to contribute to an emergency response through the timely implementation of activities in response to an eligible national emergency. A CERC is included in the project in accordance with Investment Project Financing (IPF) Policy, paragraphs 12 and 13, for Situations of Urgent Need of Assistance and Capacity Constraints. D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] The proposed project objectives are to increase access to basic water supply and sanitation services in selected rural and peri-urban areas and to strengthen private sector and public sector capacities for water and sanitation service delivery. The project will be implemented under a Multi-Phase Approach (MPA). As part of phase 1, the four (4) targeted provinces are Kwilu, Kasai, Kasai Central, and Kasai Oriental. These provinces have been identified in dialogue with the Government of the DRC and are based on several criteria including: the current rate of access to water and sanitation, the total number of people without access to basic water services, poverty levels and stunting, priority provinces under the Country Partnership Framework (CPF) and synergies with other Bank operations. These 4 Mar 30, 2023 Page 7 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) provinces represent a population of approximately 26 million. The project area mainly comprises three (3) protected areas: the Mangai hunting domain (Kwilu), part of the Salonga National Park (Kasai), and part of the Bushimaie hunting domain (Kasai Central). The major environmental and social issues facing this area are mainly (i) erosion due to uncontrolled urbanization and lack of maintenance of sewers and gutters; (ii) poor waste management due to lack of controlled landfill and the lack of technical and financial resources in the specialized public services ; (iii) the difficulty of supplying drinking water and electricity, while several rivers cross this area such as Kasai, Loange, Kwilu, Kwenge, etc. The hydrogeology context is variable throughout the Kasai region. Field observations tend to show that the 3 provinces of Kwilu, Kasai and Kasai Central offer a relatively easy access to a good quality groundwater (sand and sandstone at a depth of 80-150m) while the province of Kasai Oriental sites on a challenging hydrogeology system (unstable karts aquifer of seriously fractured limestone with occasional occurrence of kimberlite at a depth of 150-200 m). Groundwater remains a strategic resource in a country where most of the surface water (including springs) are severely affected by quality, quantity, and access issues. Climate change already exacerbates the issues of quality and quantity, especially during dry seasons (occurring in May-July). In terms of size and scale of the proposed interventions in the four selected provinces mentioned above, there will be different scale of water projects, including those 1000-5000 people, as well as medium sized 5000-10,000, as well as larger clustered peri-urban from 1:00 upwards (to maximum 50,000). Total of 3 million beneficiaries for 4 provinces (equally distributed with around 30 percent in peri-urban); Maybe indicate that in terms of the targeting for sanitation around 200 Rural Health Zones (50 per provinces) will be targeted and 75 urban health zone, targeting 2 Public Disclosure million beneficiaries (more or less equally spread over the provinces). This means around 150 urban quartiers (each around 8,500 people) and around 2000 villages (each village around 1200 people). The size of the Fecal sludge treatment plants is expected to be less than 100 m3/day. Although selected ETDs (entités territoriales decentralisées) were validated by provincial governments in February 2023, the exact locations of the project activities are not yet known at this stage. More information on the design of each sub-project will be provided and developed once the specific locations of these investments are known during project implementation. D. 2. Borrower’s Institutional Capacity Project implementation will be led by CEP-O, under the MRHE (Ministry of Water Resources and Electricity), and will be responsible for overall project coordination. As PCU, CEP-O will be responsible for the overall ESF compliance of all project activities. The CEP-O has capacity for implementing World Bank-financed projects under the safeguards policy and some experience implementing the ESF, and is co-implementing two (2) World Bank financed projects where the ESF is applied: the Kinshasa Multisectoral Urban Development Project (Kin Elenda, P171141) and the Access, Governance and Reform for Electricity and Water (AGREE, P173506). As needed, the PCU will be strengthened throughout implementation, and the project includes comprehensive technical assistance to strengthen the capacities of key implementing entities and government institutions involved in sustainability of service provision. CEP-O has an environmental specialist and a social development specialist based at national level. The CEP-O will recruit additionally: one (1) environmental specialist, one (1) social development specialist, and one (1) GBV specialist at the national level who will assume the day-to-day E&S management. At the provincial level, in support of the Provincial Project Implementation Units (PPIUs) hosted under the Governor’s office, the CEP-O will recruit four (4) E&S specialists (consultants), which will include one (1) environmental specialist and one (1) social development specialist (with expertise in GBV) to be integrated within the PPIUs of Kwilu and Kasaï ,and one (1) environmental specialist and one (1) social development specialist (with expertise in GBV) to be integrated within the PPIUs for Kasai Mar 30, 2023 Page 8 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) Central and Kasaï Oriental. The national team will oversee the provincial teams, and both will provide direct support in the preparation, implementation, and monitoring of E&S measures per the instruments to be prepared. Additional positions and staff may be added during implementation based on the changes in risks or impacts of the project. The Ministry of Environment and Sustainable Development (MEDD) governs environmental policies and their compliance. MEDD’s technical agency in charge of environmental and social monitoring and management is the Congolese Environment Agency (ACE or Agence Congolaise de l’Environnement). In accordance with Law No. 11/009 of July 9, 2011 on fundamental principles relating to the protection of the environment and Decree No. 14/030 of November 18, 2014 establishing the statutes of the Congolese Environment Agency, its purpose is the evaluation and approval of all environmental and social studies as well as the monitoring of their implementation. ACE remains understaffed with limited financial capacity, and despite several donor-funded capacity-building initiatives, it still largely relies on donor funds to carry out its field supervision duties. Capacity building is thus required to enable ACE to play its role fully, particularly in the context of the ESF. Despite its familiarity with the Bank’s Safeguard policies, ACE has yet limited experience with the Bank’s Environmental and Social Framework (ESF) and its capacity with ESF will continue to be strengthened through the project. At the provincial level, government agencies lack staff capacity and equipment to monitor E&S risks and impacts. Also, as the project plans to involve private sector firms, their capacity to manage E&S risks and impacts should be assessed and strengthened where required. To address any gaps in stakeholders’ capacity, capacity building activities (indicating the types of training and targets) have been included in the Environmental and Social Commitment Plan (ESCP). Public Disclosure II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Substantial Environmental Risk Rating Substantial Environmental risk is rated as Substantial at appraisal stage. The overall environmental impact of the project investments will be largely positive benefits in improving access to water, reducing water-borne diseases in rural and periurban communities, improving the quality of water supplied to the population and the overall improvement of health and sanitation conditions in schools and health centers. Potential adverse environmental risks and impacts are expected under Components 1 and 2. Under sub-component 1.1, they are linked to (i) construction of new water supply systems and expansion and rehabilitation of existing water supply systems including water source intake (boreholes), production facilities, storage/reservoirs, conveyance and distribution networks, including water kiosks, household connections, bulk and pre-paid meters ; (ii) the construction and installation of solar energy systems with back-up generator sets to power water systems where no electricity grids are available ; (iii) activities to be implemented with private operators for larger (peri-)urban perimeters. Under sub-component 1.2, they relate to extension of existing water systems (managed by private or not-for-profit operators) through the provision of result- based grants. Under sub-component 2.1 and 2.2, risks and impacts are mainly linked to civil works for fecal sludge treatment plants and construction of durables latrines for communities (through material support (rural) and through subsidies through toilet installation vouchers), new construction and rehabilitation of the WASH facilities. Key anticipated direct, indirect, and cumulative risks and impacts associated with project activities will entail disruption of traffic in the project area due to trench excavation work to install drinking water distribution pipes, OHS risks for Mar 30, 2023 Page 9 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) workers, community health and safety risks for communities around works sites, fire and explosions hazard, waste generation including the sludge generation from the water treatment plant and sludge disposal if not properly managed during the project operation phase, risks associated with the dismantling of equipment/materials containing asbestos in existing facilities, risks related to chemical management, risks of pollution, disturbance of aquatic habitats at water intake sites, inadequate wastewater management that can promote the proliferation of insects, risk of waterborne diseases if water distributed to communities is not well treated and stored appropriately in reservoirs. Other risks and impacts are related to the large geographic area (including remote areas with some difficulty of access) and dispersed/fragmented coverage and activities. Technical assistance (TA) activities under components 1 and 2 that include transaction advisory services for larger PPPs perimeters, TA to private sector in terms of business planning, result-based or catalytic grant proposal development, TA to local and/or private operators on ESF, TA to contractors to integrate sanitation products/services in their business line, are not expected to lead significant adverse risks and impacts. All these adverse potential risks can be effectively prevented, mitigated, or minimized on- site in a predictable manner through good engineering design and appropriate E&S measures. It is important to mention that Partial Portfolio Credit Guarantee scheme is dropped. Financial intermediaries (FIs) will therefore not be involved in this project. COVID-19: the project may increase its spread for workers, beneficiaries and communities during project implementation if appropriate measures are not be taken. Regarding aspects of Climate change (CC), DRC faces a serious threat due to the weakness of its infrastructure and livehoods. Appropriate measures related to impacts on climate change will be considered on the selection, siting, planning, design, and implementation of sub- projects. Social Risk Rating Substantial Social risk is rated as Substantial at appraisal stage. Overall, the project will have positive impacts in that it aims to Public Disclosure increase access to basic drinking water supply and sanitation for rural and peri-urban communities. This will be achieved through financing basic access infrastructure investments in water and sanitation within the targeted communities, households, within social institutions, and will increase the capacities of both private and public sector actors water supply and sanitation service delivery. The social risk for the MPA, phase 1, is therefore based on a number of factors: (i) land acquisition leading to physical or economic displacement of project affected persons (PAPs) related to the infrastructure activities (component 1 and 2); (ii) expansion and rehabilitation of water supply systems, as well as the development of solar energy to power water systems; (iii) elite capture and potential exclusion of the most vulnerable groups’ access to water and sanitation services, most notably indigenous communities which are present in the project areas (Kasais) and often have limited access to public services; (iv) increased pressure on water and natural resources; (v) Fragile context leading to insecurity in some of the selected provinces such as Ituri (a red zone) and Kasai (orange zone) per Bank the security assessments; (vi) limited E&S capacity of the private and/or local community operators for water user associations (ASUREP ) that will be financed through performance based grants or private operators through Design Build Operate contracts as; and (vii) disturbance of community health and safety through labor influx, security risks, sexual exploitation and abuse. 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: Mar 30, 2023 Page 10 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) This standard is relevant as the project interventions have potential to cause environmental and social impacts generated by the civil works to construct, expand and/or rehabilitate water systems, WASH facilities in public institutions as well as small-scale treatment facilities for fecal sludge. Rural areas, where some of poorest people reside, are disproportionately impacted by poor service delivery, unsafe drinking water quality, increasing water costs, and lack of access to safe sanitation and hygiene services. Lack of and sanitationaccess negatively impacts public health, overburdens women and girls responsible for water collection, and hinders human capital development and economic growth. Therefore, the project will have positive social and environmental impacts in increasing access, but also through strengthening the capacity of both public and private services for water supply systems and improved sanitation. The main potential enviromental and social risks and impacts in selected areas of interventions are disruption of traffic in the project area, occupational and community health and safety risks for workers and communities, fire and explosions hazard, waste generation, risks associated with the dismantling of equipment/materials containing asbestos in existing facilities, risks related to chemical management, risks of pollution, physical or economic displacement of project affected persons, etc. To manage environmental risks mentioned above and considering that the specific subproject locations are not yet known at this stage, the project developed, prior to project appraisal, an Environmental and Social Management Framework (ESMF). The ESMF assesses overall risks and impacts, setting out the principles, rules, guidelines and procedures to assess, mitigate and monitor potential risks and impacts from project activities. It includes: E&S risk and impact screening criteria (screening form template); a template for preparing Environmental and Social Impact Assessments (ESIAs) which includes, as appropriate, an analysis of alternatives (project site, technology, design and operation). The ESMF also includes the Environmental and Social Management Plans (ESMPs) or checklists (ie. such as Public Disclosure for household latrines or school facilities where a comprehensive ESMP may not be needed), as necessary for managing risks and impacts related to site-specific subprojects. The ESMF outlines the framework of the borrower’s capacity, at national and provincial level, and implementation arrangements to be put in place for E&S management. The ESMF also includes measures to manage environmental, health and safety impacts, including specific guidance for the preparation of subproject instruments, and the mitigation and response SEA/SH Action plan.Hence, the project will apply the requirements of the Environmental Health and Safety Guidelines (EHSGs) to be adopted and utilized by contractors and other project implementers such as private water operators. A (CERC) addendum to the ESMF will be prepared and disclosed if and when the CERC component is activated and before the commencement of CERC activities. Regarding TA activities proposed under components 1 and 2, the Borrower shall, during project implementation, draft Terms of Reference (ToRs) and outputs acceptable to the Bank and will include environmental and social considerations that are consistent with ESSs 1-10. The project will finance reforms, expenditures linked to Performace Based Conditions (5 PBCs in total), master plans and feasibility studies that may lead to regulation of water resources, such as delineation and demarcation of water sources for protection and integrated management. The project will include in the procurable inputs of Consultant Services (linked to PBCs and during implementation), a Social, Legal and Institutional assessment to identify potential economic and social risks and impacts of the planning or regulation around water sources, and will propose appropriate measures to minimize and mitigate these risks, in particular those that affect poor and vulnerable groups. The social , legal and institutional assessment will be evaluated by the Bank under the consultant deliverables Mar 30, 2023 Page 11 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) (reports) and approved prior to the endorsement of the plans and adoption of the frameworks. These deliverables will be prepared during implementation. To manage the social risks, the project prepared a Social Assessment that was integrated into the ESMF and SEP to assess and address risks and impacts of the project related to water access, including GBV/SEA/SH risks related to the sector and activities proposed in the project activities. The social assessment proposes an action plan containing activities with the objective of addressesing exclusion and vulnerability in water and sanitation access, especially for vulnerable, excluded and marginalized groups (including Indigenous Peoples and Internally Displaced People (IDPs)). Given the rural nature of the project, the unknown size of the infrastructure and the possible use of worker camps, the SEA/SH action plan was prepared and included in the ESMF. Labor Management Procedures (LMP) were prepared to guide the management of project workers, contractors, community workers and other groups involved in providing labor services. Due to the existing security risks in some of the selected provinces, notably Kasai Province, the project will also prepare a Security Risk Assessment (RSA) and Security Management Plans (SMP ) to ensure the safety of communities, project staff, and contractors. The Bank team will rely on and update the existing DRC Security Risk Due Diligence Assessment (SDA) Report prepared in 2021-2022 for the DRC. The client will carry out their own SDAs and subsequent SMPs during project implementation in areas deemed as High Risk (per the SDA). The country level SDA will help plan security arrangements related to World Bank activities as well as provide support in advising the PCU in relation to project-level SRAs and SMPs. The security risks will need to be monitored as the project moves into Public Disclosure implementation and when identifying subproject sites. For areas with heightened security risks and constraints, a SMP will be developed prior to operations commencing on the ground and address propose mitigation measures as they apply to/for site specific sub-projects/activities, including appropriate measures to protect workers, contractors, communities and beneficiaries. As for now, associated facilities have not yet been identified as part of this project as the specifics of the project sites are not yet known. However, if any associated facility is identified during project preparation, an assessment of its potential E&S risks and impacts will be carried out in the relevant E&S instruments to be prepared by the project. The project will not support activities, subprojects or sub-borrowers that would involve significant conversion or degradation of critical habitat or restrict communtiy access to water resources, as these are specifically excluded as part of the screening criteria in the ESMF. It includes a Negative list to exclude any possibility of risks and impacts of sub-projects in protected areas, sensitive areas, biodiversity offsets, management of living resources and others. Regarding climate and disaster related risks, the project will (a) ensure the use of solar pumping in areas where grid access is not available and (b) increase energy and water use efficiency in the rehabilitation/expansion of water systems in peri-urban and rural areas. On adaptation, the project will address vulnerabilities through (a) developing climate-resilient sanitation and water infrastructure by enhancing design and protecting water and sanitation infrastructure from flooding and erosion and (b) supporting data-driven basin-level WRM planning through expanding hydromet and aquifer monitoring, as rural water supply systems often rely on groundwater.GHG emissions do not have significant impact on the project’s viability. Project interventions are expected to reduce net GHG emissions, thus, the impact of GHG emissions on the cost-benefit analysis results are positive. Mar 30, 2023 Page 12 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) Lastly, the borrower, jointly with the Bank team, prepared an Environmental and Social Commitment Plan (ESCP). The ESCP includes the commitment to the preparation of subsequent ESIAs and relevant instruments, and related timeline. ESS10 Stakeholder Engagement and Information Disclosure Key stakeholders are the rural and peri-urban communities expected to benefit from the project activities, government institutions and the private sector, which will receive technical assistance and/or financing to implement the project. Stakeholder mapping and outreach, based on the Social Assessment conducted in all four provinces, is included in the design of the Stakeholder Engagement Plan (SEP). The SEP (as well as the Project Operations Manual to be prepared) will cover consultations to inform the choice for the proposed management model for subproject(s), , for example, the ASUREP model (community-management) or the delegation of the system O&M through private sector arrangements. Given the framework nature of the project, management models will not have been identified for all subprojects before appraisal; however, a decision-making framework will be applied, taking into account aspects such as size of the project, density of the subproject area, access to market players, as well as the outcome of consultation with provincial governments, ETDs and local communities. In addition to identifying the stakeholders, the SEP proposes specific strategies for the continuous engagement and consultation of the various stakeholders at national, provincial and local levels; the inclusion of a citizen engagement approach into the design of the project; the establishment of aGrievance Redress Mechanism (GRM)to address and resolve complaints ; and a plan for the engagement and inclusion of the most disadvantaged and vulnerable populations in the project areas. The GM, as Public Disclosure designed under the project, will be sensitive to SEA/SH complaints with multiple channels to report complaints that were confirmed as safe and accessible during consultations with women. Referral to the minimum medical, psychosocial and legal aid GBV service providers will be mapped out and evaluated for the quality of their services before referral protocols can be developed; and with complaint verification and management procedures that are confidential, ethical and survivor centered. Vulnerable groups that will be considered are women and girls, extreme poor, single parent homes, indigenous peoples (Pygmees), elderly, internally displaced communities as well as refugees and returnees, and people living with disabilities. Design of infrastructure facilities will be tailored to the specific needs of these groups. Community consultation and mobilization was and will be continuously carried out in gender-sensitive manner (especially for SEA/SH), ensuring separate spaces for women to voice priorities and needs and ensuring that women will have adequate representation in ASUREP management structures or oversight boards (at least 40 percent) and that the location of public standpipes has been consulted with women and vulnerable households. The SEP will be approved and disclosed prior to appraisal. 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 This standard is relevant to the project. Labor and working conditions will apply to direct, contracted, primary supply and community workers. The borrower prepared Labor Management Procedures (LMP) that detail how workers are Mar 30, 2023 Page 13 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) going to be managed throughout the project cycle. Based on the nature of project activities and their scope, the project will include the following categories of workers under components 1 and 2: direct workers (PCU and staff integrated in the PPIUs overseeing the implementation of project activities); contracted workers (private sector water operators engaged in civil works and PPPs for O&M); primary supply workers (provision of goods and materials to contractors) and community workers (in the ASUREPs and Community led sanitation activities where some community civil works for installation of sanitation facilities will be undertaken under the Community-Led Total Sanitation (CLTS) program, as well as in the innovative O&M models combining community and PPP management). The LMP also include guidelines for a worker’s GM for all types of workers. The project will need to ensure that Labor Management Procedures are in place and are consistent with the provisions of the World Bank’s ESS2 and National laws, which specify that all contractors and sub-contractors must ensure that there is no forced or child labor employed during construction. The LMP is a standalone document that includes provisions to ensure fair wages in line with local legislation and equity in contractual hiring of workers (both male and female); adequate payment for overwork; clearly defines the terms and conditions on which community labor will be engaged (including amount and method of payment), and other measures. The LMP includes codes of conduct (as annexes), and other measures to prevent and respond to SEA/SH incidents. In relation to solar panel/system supply chains, specific risk mitigation arrangements on forced labor will be established. There are allegations of forced labor risks associated with the polysilicon suppliers. The Borrower will require bidders to provide two declarations: a Forced Labor Performance Declaration (which covers past performance), and a Forced Labor Declaration (which covers future commitments to prevent, monitor and report on any forced labor, cascading the requirements to their own sub-contractors and suppliers). Public Disclosure Occupational Health and Safety (OHS): To ensure the health and safety of workers during the construction and operational phases, minimum requirements for Health, Safety and Environmental (HSE) have been developed as part of the ESMF and contractors will develop and implement site specific Health, Safety and Environmental (HSE) plans in line with World Bank Group Environment, Health and Safety (EHS) Guidelines (for construction activities), and International Good Practices, including emergency preparedness and response measures in line with WHO guidelines on COVID-19. The plan will include procedures on incident investigation and reporting, recording and reporting of non-compliance, emergency preparedness and response procedures and continuous training and awareness to workers. Workers Accommodation: although it is expected that most works will be completed using local labor and nearby workers, should on-site workers accommodation be confirmed, a Labor Camp Management Plan will be required as part of the Contractor-ESMP (C-ESMP). The LMP has been prepared by the client and will be approved and disclosed prior to Appraisal. ESS3 Resource Efficiency and Pollution Prevention and Management This standard is relevant to the project. The ESMF prepared by the client has globally identified, assessed risks and impacts under component 1 and 2 and proposed mitigation measures associated to relevant requirements of ESS3 (including energy, water use, raw materials, air emissions, vegetation and soil loss, construction and hazardous waste (such as fecal sludge, asbestos, etc). These mitigation measures will be included in site specific ESIAs/ESMs, as relevant. Knowing that construction/rehabilitation/expansion activities will require materials which include stones, Mar 30, 2023 Page 14 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) sand, concrete blocks and timber, the client will request all contractors to obtain these materials obtain from legally established quarries and certified suppliers, without any risk of conflict. Energy: The rate of access to electricity is very low in peri-urban and rural areas compared to urban areas. The project is not expected to be a potentially significant user of energy. The project design plans the development of solar energy to power water system where no electricity grids are available. Water use and sanitation: The project will finance the new water supply systems that will mainly rely on natural surface and ground water sources in the project areas within the Kasai sub-basin of the Congo River (Kwilu, Kasai, Kasai Central, Kasai Oriental). Water balance calculations have already been done during project preparation and the impact is extremelly small on the Kasai sub-basin. Groundwater sources are linked to the water system. As part of subproject preparation further hydrogeological assessments will be carried out during project implementation. Water use efficiency will be taken into account in the technical designs of water and sanitation infrastructure (most households latriens will be dry latrines or use limited water). The client will assess the potential cumulative impacts of water consumption on communities, others users and the environment, and will identify and implement appropriate measures identifeid as part of the ESIA. Given the DRC's vast water resources (and underdeveloped irrigation sector), no immediate conflict issues on the basis of water resources have been identified in the project area. With regard to potential risks and impacts of the sludge generation from the water treatment plant and sludge disposal, a sludge and effluent management disposal and/or reuse plan will be developed as part of the ESIA/ESMP. It will focus on the sludge quantity estimate, handling, transportation and disposal arrangements, and supervision Public Disclosure requirements. The monitoring for sludge quality on regular basis will be incorporated into the ESMP. Measures related to pollution prevention will be sought through the project intervention of medium-small scale of the water treatment plant and treatment facilities for fecal sludge which will be designed accordingly so that discharged effluents meet the congolese standards, WHO standards and WBG EHS guidelines, whichever is more stringent. Thus, the effluent will not be discharged without pretreatment into rivers. It will be assessed, as part of the environmental and social assessment, and appropriate measures will be put in place. Sanitation systems are limited to on-site facilities for public institutions and for households as well as small-scale fecal sludge treatment plants. Air emissions: During construction phase, air emissions will include exhaust gases from vehicles and machinery, as well as dust generated by construction activities. Those most likely to be affected are workers and people living near construction sites. Implementation of mitigation measures will be applied to minimize the impact of air emissions during construction, transportation of materials, and residual impacts is expected to be limited in scope and duration. Noise: During the construction phase, noise could be generated by the construction/rehabilitation works, using construction machinery and the movement of vehicles. This noise pollution relating to the construction work would be limited to the duration of the work. However, appropriate measures must be taken during the operation phase of certain infrastructures such as water treatment plants to minimize noise pollution for nearby residents. The ESMF addresses this aspect, and other subsequent instruments to be prepared will include mitigation measures to minimize and manage noise levels such as by applying standard restrictions on working hours on site. Hazardous materials and waste management: Construction activities will generate solid waste which will primarily include excavated soil and hazardous waste such as hydrocarbon oils from construction machinery and vehicles. Mar 30, 2023 Page 15 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) Appropriate mitigation measures to manage hazardous and non-hazardous wastes will be included in the ESMPs and other subsequent instruments to be prepared. With regard to rehabilitation activities of existing installations or pipe networks that could lead to risks related to the exposure and handling of materials/equipment containing asbestos, an asbestos removal plan should be prepared and implemented before starting any field work. During the operation of fecal sludge and water treatment facilities, chemicals will be used for disinfection and a proper chemical residuals management plan will be prepared as part of the site-specific ESIA/ESMP. GHG emissions: The project is not expected to generate significant greenhouse gas emissions and has a net reduction of GHG emissions (see Project Appraisal Document). ESS4 Community Health and Safety This standard is relevant as the project activities will be taking place in communities and presenting potential health and safety risks to both the environment and populations. The project, as part of the ESMF, conducted an assessment of the potential impacts of the project activities on the health and safety of the beneficiary communities. These include risks and impacts of the design of the infrastructure both during and after construction, community exposure to labor influx, exposure to transmissible diseases (including COVID-19, HIV/AIDS), noise, pollution and other public health issues. The water supply pipelines will be constructed along roads that will disturb local traffic during the construction phase. In addition, increased movement of vehicles transporting equipment and materials on roads near communities, Public Disclosure particularly schools and health centers, may pose safety issues. A traffic management plan will be developed as an integral part of site-specific ESIA/ESMP. During operation phases, repair and maintenance of pipelines and manholes may pose safety risks to local communities from open ditches and open manholes etc. Appropriate measures will also be developed in the operation’s ESMP to protect the communities from being injured during construction, rehabilitation and repair and maintenance works and incorporated under the contractor C-ESMP, as part of the operations and/or defect liability period. Any incidents or fatalities on any of the sites will be immediately reported to the Bank team during project implementation. The project will operate in areas with security concerns, specifically Kasai Central and Kasai where there are high levels of crime, civil unrest, and where armed groups occasionally continue to operate. A security risk assessment (SRA) combined with a Security Management Plan (SMP) will be carried out prior to implementation of project activities in the areas where there exist security risks. On the Bank side, the task team will update the existing Security Due Diligence Assessment (SDA) conducted in 2021-2022. The security risks will need to be monitored as the project moves into implementation and when choosing subproject sites. For areas where there is a high risk (per the identification in the SRA), a SMP will be developed prior to operations commencing on the ground and address mitigation measures as they apply to site specific sub-projects/activities, including appropriate measures to protect workers, contractors, and other project actors. Per initial screening and assessment, the project will not utilize security personnel to secure staff or project equipment. Should the risk change and security personnel be required, the security assessment and subsequent management plan will determine whether security forces are required; if so, ESS4 and SEA/SH risk management guidelines and requirements will be adhered to. Mar 30, 2023 Page 16 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) The ESMF, including the SEA/SH Action Plan, will be approved and disclosed prior to project appraisal, while the SRA/SMP will be prepared prior to project implementation, including provisions for additional assessment and mitigation measures at the subproject level. The SEA/SH action plan will include: (i) basic Code of Conduct (CoC) for workers, including contractors and suppliers outlining prohibited SEA/SH behaviors and applicable sanctions in case of non-compliance; (ii) regular training for workers; (iii) an accountability and response framework within the project’s Grievance Mechanism (GM) with specific procedures to manage SEA/SH complaints safely and confidentially, following a survivor centered approach. It will also include referral protocols for survivors, a holistic package of GBV support services, awareness activities for communities on GBV/SEA/SH risks; and regular consultations with women and girls in separate groups led by a woman in a safe place and procedures for further assessment of risks at the subproject level. Sanctions for contractors and suppliers are specified in the CoC, and these include (but not limited to): informal warning, formal warning, additional training, loss of up to one week’s salary, suspension of employment, termination of employment, and/or referral to the police or other authorities as warranted. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement This standard is relevant as activities under component 1 and 2, which include but are not limited to construction, expansion, and/or rehabilitation of rural water supply systems in rural and peri-urban areas, the construction of public WASH facilities and small scale fecal sludge treatment plants, will require land acquisition resulting in physical or economic displacement of Project Affected People (PAP). Potential social impacts and risks are expected, including economic impacts on PAP and temporary or permanent land acquisition, increased pressure on water resources in Public Disclosure densely populated areas, or water scarcity in drought-prone areas affecting livelihoods. Some works may require permanent land acquisition, these include the installation of standpipes, distribution networks, water storage/reservoirs, and solar panels where power grids are not available, while some other works may require temporary relocation during works, such as the installation/rehabilitation of handwashing facilities in schools, health centers, markets, transport hubs, etc. As some facilities (water points) will be community based and managed, the project may envisage voluntary land donations (VLD) on community managed land where viable. However, seeing as the specific activities will be limited in scope and size (mainly small civil works), the land needs are not estimated to be significant, therefore the number of PAPs is expected to also be small. The areas to be covered by the project are rural and peri-urban areas with low population density where land scarcity is not a challenge. The project may also finance water master plans and feasibility studies (as part of the PBCs and subsequent SOPs) that may alter land usage in areas around water resources, and may lead to demarcation to protect water sources. The impacts of land management are not evaluated under ESS 5; however, the impact of these activities will be assessed through a Social, Legal and Institutional Assessment to be undertaken under ESS 1. The Borrower will develop a Resettlement Policy Framework (RPF) that will include the procedures and approaches for land acquisition. The RPF will provide guidance for preparation of site-specific Resettlement Action Plans (RAP) as required before civil works can commence on specific sub-projects. The RAPs will be prepared, consulted upon, cleared by the Bank and implemented prior to commencement of any construction, rehabilitation and/or land acquisition. The project will (in line with provisions in ESS6 application in the project) not finance any activities in natural habitats, protected areas, forests, or any areas where access to natural resources will be restricted. Mar 30, 2023 Page 17 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) The RPF will be approved and disclosed prior to project appraisal. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources ESS6 is relevant to the project. Activities under components 1 and 2 could impact biodiversity conservation and sustainable management of living natural resources as the project activities will be located in rural areas. At this stage, the specific locations of subprojects and, the nature of biodiversity and its sensitivity within each project areas are not yet known. An early screening will be done to improve projects site selection to avoid selecting areas with high biodiversity values. The project will not support activities, subprojects or sub-Borrowers that would involve significant conversion or degradation of critical habitat, as these are specifically excluded as part of the screening criteria in the ESMF. It includes a Negative list to exclude any possibility of risks and impacts of sub-projects in protected areas, sensitive areas, biodiversity offsets, management of living resources and others for the implementation of any sub-projects. Beyond the negative list and measures to avoid sensitive environmental, social, and cultural receptors, screening and assessment of potential impacts to habitats and key species will be undertaken through the site-specific ESIAs process, in accordance with ESS6 requirements. Through the ESMF, the client identified relevant risks/impacts associated to ESS6 for subprojects under component 1 and 2 and included appropriate mitigation measures. All proposed alternatives for sub-projects will be assessed trough potential subsequent ESIAs and relevant instruments to avoid sensitive environmental, social and cultural receptors. Public Disclosure ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities The Pygmy Indigenous Population in the DRC possess the characteristics of Historically Underserved Traditional Local Communities under ESS7 and are present in the project implementation areas, more specifically in the Kasai, Kasai Oriental, and Kasai Central Provinces. The Social Assessment and the Indigenous Peoples Policy Planning Framework (IPPF) were prepared to assess risks of the project activities on Indigenous Peoples (IPs), to ensure that they are fully included in any project activities or benefits occurring where they live, and that any potential impacts on land used by IPs for traditional activities are addressed. Some of the identified risks includes lack of IP access to installed water points and installation in non-IP villages; non-involvement or exclusion of IPs (especially women) and other vulnerable groups in the planning and development of sub-projects for water, sanitation and hygiene in the social infrastructure; further marginalization of IP groups; and exclusion of IPs in capacity building. Once the project has identified subproject sites, the IPPF will serve as guidance to prepare the site specific Indigenous Peoples Plans (IPP). The project has provided an exclusion list to ensure that the project does not finance activities which would result in adverse impacts on land or natural resources subject to traditional Pygmy/IP ownership or under customary use or occupation, to cause their relocation from these lands, or to have significant impacts on their cultural heritage. The exclusion list is included in the ESMF and is part of the screening exercise activity in site selection. Activities addressing SEA/SH risks for Indigenous Female People will be integrated in the SEA/SH Action Plan. The IPPF will be approved and disclosed prior to Appraisal. Mar 30, 2023 Page 18 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) ESS8 Cultural Heritage The project will support civil works activities that will include land excavations works that may have adverse impacts on tangible cultural heritage. Through the environmental and social assessment, the project will confirm the existence of intangible cultural heritage in the rural areas of the project. To manage and mitigate the risks related to ESS8, further screening and assessment will be conducted on the identified risks. Screening criteria are included in the ESMF as well as chance find procedures that will be included in the relevant ESMPs and contractor contracts. Considering that the water source is envisaged to be in different sites yet unknown, a chance find procedure will be included in the C-ESMP. If potential impacts on cultural heritage near or on any project sites are identified, cultural heritage plan(s) will be developed in accordance with this standard and national law. ESS9 Financial Intermediaries The project had previously applied ESS9 for potential activities to the capitalization of a dedicated water window under the Partial Portfolio Credit Guarantee. However, during preparation, this activity was dropped. Therefore, this standard no longer applies to the project. B.3 Other Relevant Project Risks As mentioned under ESS4, the project will operate in areas with security concerns, specifically Kasai Central and Kasai where there are high levels of crime, and experienced some civil unrest in the recent past. A security risk assessment (SRA) and a Security Management Plan (SMP) will be carried during implementation for project activities in areas Public Disclosure where there exists high security risks. The SDA will define the risk level per province. The security risks will need to be monitored as the project moves into implementation and when choosing subproject sites. The SMP will propose appropriate measures to protect workers, contractors, and implementing actors. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways Yes OP 7.60 Projects in Disputed Areas No 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: The project will be implemented in accordance with requirements of the ESF Environmental and Social Standards (ESSs) and in accordance with national and National level regulatory and legal requirements where applicable. Mar 30, 2023 Page 19 of 20 The World Bank DRC Water Supply and Sanitation Access Program (P178389) IV. CONTACT POINTS World Bank Contact: Patrick Goy Ndolo Title: Senior Water Supply and Sanitation Specialist Telephone No: 5377+3006 Email: pndolo@worldbank.org Contact: Susanna Smets Title: Senior Water Specialist Telephone No: +1-202-473-9329 Email: ssmets@worldbank.org Borrower/Client/Recipient Borrower: Ministry of Finance Implementing Agency(ies) Implementing Agency: Ministry of Hydraulic Resources and Energy Implementing Agency: Ministry of Environment and Sustainable Development V. FOR MORE INFORMATION CONTACT Public Disclosure The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VI. APPROVAL Task Team Leader(s): Patrick Goy Ndolo, Susanna Smets Practice Manager (ENR/Social) David Seth Warren Cleared on 30-Mar-2023 at 10:28:19 EDT Mar 30, 2023 Page 20 of 20