Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD5247 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROJECT PAPER ON A PROPOSED ADDITIONAL GRANT IN THE AMOUNT OF US$4.57 MILLION FROM THE GLOBAL ENVIRONMENT FACILITY TRUST FUND TO THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY FOR THE SUSTAINABLE GROUNDWATER MANAGEMENT IN SADC MEMBER STATES PROJECT PHASE 2 May 8, 2023 Water Global Practice Eastern and Southern Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective March 31, 2023) Currency Unit = US$ FISCAL YEAR January 1 - December 31 Regional Vice President: Victoria Kwakwa Country Director: Boutheina Guermazi Acting Regional Director: Holger A. Kray Practice Manager: Soma Ghosh Moulik Task Team Leaders: Diego Juan Rodriguez, Palesa Selloane Mokorosi ABBREVIATIONS AND ACRONYMS AF Additional Financing CIWA Cooperation in International Waters in Africa DA Designated Account DRC Democratic Republic of Congo DWF Danish Water Forum ESA Environmental and Social Assessments ESMF Environmental and Social Management Framework ESMPs Environmental and Social Management Plans ESS Environmental and Social Standards FM Financial Management FMS Financial Management Specialist GESI Gender Equality and Social Inclusion GHG Greenhouse Gas GRS Grievance Redress Service GDMP Groundwater and Drought Management Project GEF Global Environment Facility GIP Groundwater Information Portal GLA Groundwater Literature Archive IFRs Interim unaudited Financial Statements IGAD Intergovernmental Authority on Development IGRAC International Groundwater Resources Assessment Centre IHP Intergovernmental Hydrological Program IPF Investment Project Financing IW-Learn International Waters Learning Exchange and Resource Network (GEF) JSAPs Joint Strategic Action Plans MoU Memorandum of Understanding M&E Monitoring and Evaluation NFGs National Focus Groups PAD Project Appraisal Document PDO Project Development Objective PLI Policy, Legal and Institutional PRAMS Procurement Risk Assessment Management System RBO Regional Based Organizations RPSW Revised Protocol on Shared Watercourses SADC Southern Africa Development Community SADC-GIP Southern Africa Development Community- Groundwater Information Portal SADC-GMI Southern Africa Development Community-Groundwater Management Institute SADC-SGWMP II Sustainable Groundwater Management in SADC Member States Project Phase 2 SEP Stakeholder Engagement Plan SGWMP Sustainable Groundwater Management Project SGDMP Groundwater and Drought Management Project SORT Systematic Operational Risk-Rating Tool STEP Systematic Tracking of Exchanges in Procurement TBA Transboundary Aquifers TDA Transboundary Diagnostic Analyses UFS University of Free State USAID United States Agency for International Development TABLE OF CONTENTS I RATIONALE FOR ADDITIONAL FINANCING AND STRATEGIC CONTEXT ...................................7 II. DESCRIPTION OF ADDITIONAL FINANCING ........................................................................ 10 III. APPRAISAL SUMMARY .................................................................................................... 16 IV. KEY RISKS ........................................................................................................................ 21 V. GRIEVANCE REDRESS SERVICE .......................................................................................... 21 VI SUMMARY TABLE OF CHANGES ..................................................................................... 22 VII DETAILED CHANGE(S) .................................................................................................... 22 VIII. RESULTS FRAMEWORK AND MONITORING .................................................................... 25 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) BASIC INFORMATION – PARENT (Sustainable Groundwater Management in SADC Member States Project Phase 2 - P175355) Country Product Line Team Leader(s) Eastern and Southern Recipient Executed Palesa Selloane Mokorosi Africa Activities Project ID Financing Instrument Resp CC Req CC Practice Area (Lead) P175355 Investment Project SAEW2 (9523) AFERI (81808) Water Financing Implementing Agency: SADC-Groundwater Management Institute (SADC-GMI) ADD_FIN_TBL1 Is this a regionally tagged project? No Bank/IFC Collaboration No Expected Approval Date Closing Date Guarantee Environmental and Social Risk Classification Expiration Date 11-Jun-2021 30-Nov-2025 Moderate Financing & Implementation Modalities Parent [ ] Multiphase Programmatic Approach [MPA] [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) [ ] Hands-on Expanded Implementation Support (HEIS) Page 1 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) Development Objective(s) The Project Development Objective is to develop capacity and knowledge for inclusive groundwater management and use in the SADC region at national and transboundary levels. Ratings (from Parent ISR) RATING_DRAFT_NO Implementation Latest ISR 14-Sep-2021 08-Apr-2022 14-Aug-2022 14-Feb-2023 Progress towards achievement of PDO S S S S Overall Implementation Progress (IP) MS MS MS MS Overall ESS Performance S S S S Overall Risk M M M M BASIC INFORMATION – ADDITIONAL FINANCING (Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 - P176607) ADDFIN_TABLE Urgent Need or Capacity Project ID Project Name Additional Financing Type Constraints P176607 Additional Financing for Scale Up Sustainable Groundwater Management in SADC Member States Project Phase 2 Financing instrument Product line Approval Date Focal Area Investment Project Global Environment 03-May-2023 International waters Financing Project Projected Date of Full Bank/IFC Collaboration Disbursement 30-Nov-2025 No Is this a regionally tagged project? Country (ies) Page 2 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) Yes Southern Africa Financing & Implementation Modalities Child [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) [ ] Hands-on Expanded Implementation Support (HEIS) [ ] Contingent Emergency Response Component (CERC) Disbursement Summary (from Parent ISR) Net Source of Funds Total Disbursed Remaining Balance Disbursed Commitments Grants 9.00 2.09 6.91 23 % PROJECT FINANCING DATA – ADDITIONAL FINANCING (Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 - P176607) PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFi n1 SUMMARY (Total Financing) Proposed Additional Total Proposed Current Financing Financing Financing Total Project Cost 9.00 4.57 13.57 Total Financing 9.00 4.57 13.57 Financing Gap 0.00 0.00 0.00 DETAILS - Additional Financing NewFinEnh1 Non-World Bank Group Financing Page 3 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) Trust Funds 4.57 Global Environment Facility (GEF) 4.57 COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [ ✔ ] No Does the project require any other Policy waiver(s)? [ ] Yes [ ✔ ] No Page 4 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) ESStandards Environmental and Social Standards Relevance Given its Context at the Time of Appraisal E & S Standards Relevance Assessment and Management of Environmental and Social Risks and Impacts Relevant Stakeholder Engagement and Information Disclosure Relevant Labor and Working Conditions Relevant Resource Efficiency and Pollution Prevention and Management Relevant Community Health and Safety Relevant Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Not Currently Relevant Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Relevant Local Communities Cultural Heritage Not Currently Relevant Financial Intermediaries Not Currently Relevant ESStandardsNote NOTE: For further information regarding the World Bank’s due diligence assessment of the Project’s potential environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review Summary (ESRS). INSTITUTIONAL DATA Practice Area (Lead) Water Contributing Practice Areas PROJECT TEAM Bank Staff Name Role Specialization Unit Diego Juan Rodriguez Team Leader (ADM Lead Water Economist SAEW2 Page 5 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) Responsible) Hydrogeologist/WRM Palesa Selloane Mokorosi Team Leader SAEW2 specialist Procurement Specialist (ADM Tesfaye Ayele EAERU Responsible) George Daniel Procurement Specialist EAERU Financial Management Tandile Gugu Zizile Msiwa EAEG2 Specialist (ADM Responsible) Social Specialist (ADM Erika Ella Auer SAES3 Responsible) Environmental Specialist (ADM Johanna Martina Whitfield SAEE3 Responsible) Blessing Manyanda Procurement Team AEMZW Lindiwe Dube Procurement Team AECS1 Majbritt Fiil-Flynn Team Member Social Safeguards SAWS1 Marcus Marinus Petrus Team Member Hydrogeologist SAEW2 Wijnen Victor Osei Kwadwo Team Member M&E and Operations SAEW3 Extended Team Name Title Organization Location Page 6 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) I RATIONALE FOR ADDITIONAL FINANCING AND STRATEGIC CONTEXT A. Rationale for Additional Financing 1. This Project Paper seeks approval of the Executive Directors to provide an additional grant from the Global Environment Facility (GEF) Trust Fund in the amount of US$4.57 million to the Southern Africa Development Community (SADC) for the Sustainable Groundwater Management in SADC Member States Project Phase 2 (SADC-SGWMP II). The parent project, SADC-SGWMP II (P175355), financed by the Cooperation in International Waters in Africa (CIWA) multi- donor trust fund in the amount of US$9 million, was approved on June 11, 2021, and its closing date is November 30, 2025. 2. The purpose of the additional financing (AF) is to help finance the costs associated with scaling up of activities aimed at strengthening the transboundary dimension of regional groundwater resources and at developing capacity and knowledge for inclusive groundwater management and use in the SADC region at national and transboundary levels . The AF has been designed around the three components as outlined in the parent project to scale up successful interventions and introduce new ones both at national and transboundary levels. The AF will scale up interventions in transboundary aquifers to support the development of groundwater knowledge and information and its dissemination. The AF will also support the implementation of the basic pilot projects in all 16 SADC Member States and competitive sub- grants aimed to improve innovation in groundwater management and development. B. Country Context 3. The Southern African Development Community is committed to addressing poverty, high inequality, low human capital, and the impacts of climate change through socio-economic cooperation and integration among its 16 Member States1. The SADC region encompasses a total population of roughly 345 million and a population growth rate of about 2.9 percent, which is among the world’s highest. Approximately 50 percent of the population is estimated to live on less than US$1 per day. 4. Coupled with the developmental challenges in SADC is the growing importance of groundwater for water security. Water security is pivotal, and groundwater has become an indispensable water source. Groundwater can improve water security and reduce vulnerability to recurring droughts. It is estimated that over 70 percent of the 345 million people living in the SADC region rely on groundwater as their primary water source.2 SADC Member States have an estimated 2,491m3/capita/annum in renewable groundwater. However, only 1.2 percent of groundwater resources are currently utilized. Groundwater is often utilized without proper knowledge of the aquifer potential and without monitoring the status and groundwater resource use, leading to potential overexploitation or contamination of the source, thus jeopardizing sustainable groundwater use in the long term.3 1 The SADC member states include the following countries: Angola, Botswana, Comoros, Democratic Republic of Congo (DRC), Eswatini, Lesotho, Malawi, Madagascar, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Tanzania, Zambia and Zimbabwe. 2 Groundwater Monitoring in the SADC Region – Overview prepared for the Stockholm World Water Week. International Groundwater Assessment Center (IGRAC), 2013. 3 Southern African nations need to up their groundwater management game. Published December 10, 2018 at: https://theconversation.com/southern-african-nations-need-to-up-their-groundwater-management-game-107614. Page 7 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) C. Parent Project Background 5. The World Bank, GEF and CIWA have been supporting the strengthening of institutions and capacity in the water sector in Africa. The World Bank’s Regional Integration and Cooperation Assistance Strategy4 assesses the major challenges and opportunities for groundwater development in the continent and identifies priority areas for intervention, including resilience to drought and other climate shocks. The strategy also recommends regional approaches to groundwater knowledge and capacity-building initiatives. Accordingly, CIWA supports groundwater management development and strengthening resilience through several engagements in Africa, namely in the Horn of Africa with the Intergovernmental Authority on Development (IGAD), on Lake Chad and in the Sahel. 6. As part of this engagement, the SADC-Sustainable Ground Water Management Project (SADC-SGWMP, P127086), was financed with grants in the amount of US$8.2 million from the GEF and US$2 million from the CIWA. The project's development objective emphasized strengthening national and transboundary institutions’ ability to manage groundwater. Emanating from the lessons learned from the SADC-SGWMP (P127086), which sought the development of a SADC regional strategic approach to support and enhance the capacity of its member states in the role, availability, and supply of potential groundwater resources, the Southern Africa Development Community- Groundwater Management Institute (SADC-GMI) was set up in 2011, under the SADC-SGWMP. 7. Furthermore, the SADC-GMI has partnered with a wide range of stakeholders and has leveraged technical and financial resources to realize its mandate. The SADC-GMI has successfully fulfilled capacity-building requests from member states and other stakeholders. Sixty-five young professionals have benefited from the capacity-building program through training and internships, of which 23 (about 1/3) were women. At the transboundary level, the SADC-GMI signed memoranda of understanding (MoUs) with five River Basin Organizations (RBOs) (the Limpopo Watercourse Commission, Zambezi Watercourse Commission, the Orange-Senqu River Commission, the Permanent Okavango River Basin Water Commission, and the Cuvelai Water Course Commission), and it is actively collaborating with four more to establish groundwater committees and deliver specific training programs. The SADC-GMI has also developed and shared knowledge by developing the SADC Groundwater Information Portal (SADC-GIP) and the SADC Groundwater Literature Archive. The SADC GIP is available to all the member states. Its main feature is a map viewer through which users can browse maps, create overlays, and access information behind the maps. The portal also contains a document database from which authorized users can download and upload new data and maps in a password protected environment. Updating the portal is a continuous activity using data being collected with several thematic layers added. These interventions have contributed to developing a framework for groundwater data collection and sharing for the region. Also, implementing infrastructure pilot projects in the member states has already benefitted more than 83,000 people, of which 53 percent are female. 8. The Sustainable Groundwater Management in SADC Member States Project Phase 2 (SADC-SGWMP II – P175355) aims to scale up and deepen selected activities and engagements where the SADC-GMI has been successful in mobilizing countries around cooperative action and where countries have expressed interest and need for further engagement. The SADC-SGWMP II is a direct follow-up from the SADC Sustainable Groundwater Management Project, which closed on June 30, 2021. The SADC-SGWMP II deepens and broadens the efforts to support the SADC member states and Transboundary RBOs to operationalize advances in knowledge generation and dissemination, to institutionalize gains in the capacity at local, national and transboundary levels to manage groundwater resources sustainably and to develop infrastructure solutions that are ready to be scaled up through investment programs. 4 World Bank. 2020. Regional Integration and Cooperation Assistance Strategy Update: https://documents1.worldbank.org/curated/en/249911623450779120/pdf/Supporting-Africa-s-Recovery-and-Transformation-Regional- Integration-and-Cooperation-Assistance-Strategy-Update-for-the-Period-FY21-FY23.pdf Page 8 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) D. Parent Project Development Objective 9. The parent project’s development objective is to develop capacity and knowledge for inclusive groundwater management and use in the SADC region at national and transboundary levels. 10. For the PDO, the following definitions apply: Inclusive groundwater management ensures that all stakeholders’ views, interests, and aspirations are considered. Participation in groundwater management, without leaving out the vulnerable and marginalized members of communities, is a key component of inclusivity. It also promotes mutual learning between users, managers, and policymakers in different domains (agriculture, water supply, energy, etc.). Management of shared aquifers is an important part in the transboundary aspect of the project. E. Parent Project Components The status of the three components of the project is described below: 11. Component 1 – Capacity building for sustainable groundwater management (U$4.70 million). The component focuses on capacity building and strengthening institutions through technical assistance, knowledge exchanges, workshops, and training activities. Capacity-building efforts will seek to be inclusive by considering the special needs and challenges of women and other vulnerable populations. The SADC-GMI has developed tools to measure impact in using the capacity and knowledge products as well as inclusive groundwater management and use practices. Through the rolling-out of support for the establishment and operationalization of the National Focus Groups (NFGs), the project has established NFGs in three SADC member states (Mauritius, South Africa and Zambia). The project has further reevaluated the capacity building plan to align with the emerging regional groundwater management priorities. The SADC-GMI continues to build partnerships with regional and international partners to implement groundwater management interventions. 12. Component 2 – Knowledge development, dissemination, and advocacy (U$1.40 million). The project commenced updating of the SADC-Groundwater Information Portal in September 2022. The numerical model for Eastern Kalahari Karoo transboundary aquifer is at 80 percent completion, the Buzi, Pungwe, and Save Rivers E-Flows Hydrogeological study is at 75 percent completion. The knowledge products will promote inputs from women who have accumulated considerable knowledge about water resources, including location quality and storage methods. Results of the activities under this component will be compiled at the national level in national groundwater assessments that assess the status of groundwater resources, their uses, and the regulatory framework in place. The dissemination strategy of knowledge products will consider equity in outreach. 13. Component 3 – Building resilient livelihoods and inclusive groundwater management (U$2.90 million). Implementation of subgrant pilot projects has not yet commenced. The sub-grants support the piloting and upscaling of sustainable groundwater infrastructure approaches, including surface water harvesting, managed aquifer recharge (MAR), community led initiatives, innovative borehole design for different environments or uses, and the expansion of groundwater monitoring networks. The SADC-GMI has completed the updating of the sub-grant manual and has provided orientation workshops on the use of the manual conducted in 9 out of 16 Member States (Eswatini, Lesotho, Malawi, Mauritius, Namibia, South Africa, Tanzania, Zambia, Zimbabwe). The criteria to access sub grants is outlined in the sub- grant manual and negotiations among the member states aimed at implementing activities to demonstrate groundwater management practices and infrastructure are ongoing. The sub-grant manual provides details on eligibility criteria, application, and reporting procedures (on activities, results, fiduciary due diligence and accounting, environmental and Page 9 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) social standards, etc) and a model small-grant agreement. All grants will be designed within the national and regional context, seeking to implement innovation and synergies with other national programs to maximize impact. 14. Overall implementation status: The parent project is a well performing project. The progress towards achievement of PDO and Overall Implementation Progress (IP) have been consistently rated as Moderately Satisfactory (MS) or better for more than a year. The ratings for Environment and Social standards performance, Financial Management, Project Management, Monitoring & Evaluation have all been Satisfactory. The rating on Procurement was lowered from Satisfactory to Moderately Satisfactory in the last 6 months due to delays in processing procurement of some activities. Close support has been provided in STEP and processing of activities have improved. Key legal covenants, including audit and financial management reporting requirements have been complied with and are up to date. F. Rationale for additional financing 15. The AF from GEF will strengthen the transboundary dimension of the regional groundwater resources by: (a) supporting activities with global environmental benefits within the shared river basins which provide groundwater dependent ecosystem services; (b) enhancing transboundary cooperation on shared aquifers through participatory fact- finding and joint strategic action plans (JSAPs) on cooperative opportunities (including through International Waters Learning Exchange and Resource Network (IW-LEARN)) and a vision for a collaborative future. While strengthening the transboundary dimension of the regional groundwater management is the focus, it is imperative to consider the complementary mandates and roles of the stakeholders at different levels at transboundary, national, and local level in line with the PDO to adequately contribute to the success of the project. In view of this, the AF will support scaled up and new activities designed around all the three project components as detailed in Table 1. The AF will support establishment and operationalization of National Focal Groups in the eight remaining member states of the SADC. As such, the AF will be used to support the implementation of quick-win initiatives arising from the roadmaps (following the previously completed Policy, Legal and Institutional gap analysis) as pilots to demonstrate the way forward to the member states and other stakeholders at national and transboundary levels. The AF will finance studies aimed at addressing pertinent groundwater challenges in the region. These will include, (a), detailed hydrogeological investigations in selected TBAs, (b) further projects to generate Transboundary Diagnostic Analysis (TDAs) and the Joint Strategic Action Plans (JSAPs) in transboundary aquifers. Data and information generated from these studies will be disseminated through the SADC-Groundwater Information Portal and SADC-Groundwater Literature Archives. 16. The GEF funds will further support additional sub-grants in multiple Member States that target transboundary aquifers. In addition, as per GEF policy on International Waters,1 percent of the GEF financing will go towards IW-LEARN which will support an advocacy and communication plan to facilitate partnerships between participating countries to stimulate knowledge sharing and capacity building while implementing activities related to regional dialogue and studies. II. DESCRIPTION OF ADDITIONAL FINANCING A. Project Development Objective 17. The development objective of the additional finance is to develop capacity and knowledge for inclusive groundwater management and use in the SADC region at national and transboundary levels. The PDO is the same as the parent project. 18. The additional financing is US$4.57 million and will cover specific activities under components outlined in the SADC- SGWMP phase 2 (see Table 1). This includes: Page 10 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) • Component 1 – Capacity building for sustainable groundwater management (US$1.42 million) • Component 2 – Knowledge development, dissemination, and advocacy (US$2 million) • Component 3 – Building resilient livelihoods and inclusive groundwater management (US$1.15 million) 19. The total grant amount US$4.57 million is inclusive of project management cost and coordination allocated under Component 1. 20. Component 1 – Capacity building for sustainable groundwater management (US$1.42 million). The additional financing aims to address the gaps that have been identified at the planning level, listing the need for improvement in the conjunctive water resources management regimes and integration of surface and groundwater planning at the transboundary level. National partnerships and ownership of the project activities in the SADC member states will be enhanced through the rolling-out of support for the establishment and operationalization of the National Focus Groups (NFGs). NFGs will play an important role in prioritizing and facilitating in-country capacity-building efforts. 21. Sub-component 1.1 will support institutional capacity building at the national and regional level (US$0.80 million). Activities under this sub-component aim at building capacity in key institutions across the SADC region to manage and regulate groundwater use. Proposed activities focus on i) strengthening local, national, and regional institutions to manage groundwater sustainably; ii) integrating and expanding groundwater planning in their programs and strategies; and iii) strengthening groundwater regulatory frameworks and promotion of best management practices. National partnerships and ownership of the project activities in the member states will be enhanced through the rolling-out of support for the establishment and operationalization of the National Focus Groups (NFGs)5. Activities earmarked to be implemented under this sub-component will complement those being implemented under the CIWA funded project. First, work will be undertaken to establish and operationalize NFGs in the remaining 3 member states to cover all the 16 SADC member states. A Young Professionals programme will also be supported to ensure more participation of females and to expose them to more academic programs in collaboration with some regional universities with whom the SADC-GMI has and will establish formal cooperation mechanisms through the signing and implementation of memoranda of understanding. Cooperation frameworks are at various stages of operability with the University of the Free State, University of Zambia, University of Venda and University of Botswana. In collaboration with these partners and other international organizations such as UNESCO-IHP, BGR, IGRAC, and regional partners, the regional Capacity Plan will also be updated under this sub-component and short duration trainings delivered to stakeholders across the region, giving due focus to men and women as well as the young and old respectively. Finally, collaboration with the region’s RBOs will also be intensified through this sub- component. Specific activities foreseen include the development and implementation of groundwater action plans in at least one RBO and transboundary aquifer respectively so as to demonstrate the scope that the governance structures at these levels can pursue moving forward. 22. Sub-component 1.2 will strengthen the SADC-GMI to perform as the SADC region’s center of excellence for sustainable groundwater development and management as elaborated in its Strategic Business Plan (US$0.40 million). Activities will support the implementation of initiatives arising from the SADC-GMI Financial Sustainability Plan and those coming from the input of the Fundraising Specialist. Moreover, as a contribution to the sustainability of the SADC-GMI, this sub-component will also support the financing of four-core staff responsible for the day-to-day strategic oversight of the SADC-GMI, including the Director, the Groundwater Technical Anchor, the Communication and Branding Specialist and the 5 The NFGs have already been established in the five Member States, Eswatini, Malawi, Mozambique, Namibia and Zimbabwe, with support from the SADC-SGWMP. The target is to establish and operationalize new NFGs in at least 8 of the remaining 11 SADC Member States. Page 11 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) Administrative and Finance Officer. As part of brand enhancement, the SADC-GMI will also leverage on the IW-Learn resources, which is an important and essential mechanism for knowledge exchange across the GEF global portfolio as well as training on innovative, portfolio relevant approaches. Furthermore, the SADC-GMI’s role as a subsidiary institution of the SADC Secretariat will be supported, including serving on the SADC Subcommittee on Hydrogeology, the Water Resources Technical Committee and Ministers’ meetings. Activities will also support business development, awareness and communications. Support will also be provided to build strategic partnerships with national, regional and international institutions to allow the SADC-GMI to leverage capacity and financial resources. 23. Sub-component 1.3 will cover the SADC-GMI’s project management costs and build capacity for project implementation (US$217,438). Specific activities to be supported under this sub-component include project supervision and reporting, the continued operationalization, and maintenance of an effective monitoring and evaluation (M&E) system that will facilitate the tracking of the results framework. Activities related to project management and the travel expenditures of the Project Steering Committee and project staff will also be supported. The continued availability of additional staff capacity required by the SADC-GMI on the project management team will be financed through this component including, but not limited to, an Infrastructure Specialist, an Environmental and Social Management Specialist, a Monitoring and Evaluation Specialist, Gender Equality and Social Inclusion Specialist, a Procurement Specialist and a Project Assistant. 24. Component 2 – Knowledge development, dissemination and advocacy will support the generation and dissemination of knowledge on groundwater resources in the SADC region (US$2 million). The knowledge products will promote inputs from women who have accumulated considerable knowledge about water resources, including location quality and storage methods. Results of the activities under this component will be compiled at the national level in National Groundwater Assessments that assess the status of groundwater resources, their uses, and the regulatory framework in place. The dissemination strategy of knowledge products will consider equity in outreach. The additional financing will enhance the SADC-GMI’s interventions in Transboundary Aquifers and further studies to address pertinent groundwater challenges in the region. The final selection of the TBAs to be worked on will be undertaken by the SADC Member States through the sub-committee on Hydrogeology. However, the approach for the selection of the TBAs to be worked on will be based on, (a) the priority TBAs in SADC identified in the 2013 study6, and (b). the status of development of the TBA in line with the SADC-GMI’s aquifer development progression approach which starts with TDA, then JSAP and finally implementation of the JSAP through the development of resilient livelihood hubs and aquifer protection through monitoring. Based on these two selection criteria, the TBAs that will be put forward for consideration by the SADC member states for consideration and prioritization for support under this additional financing are, (a) Shire Valley Alluvial Aquifer, Stampriet (Southwest Kalahari/Karoo Basin Aquifer), Ramotswa Dolomite Aquifer) and Eastern Kalahari Karoo Basin Aquifer - all these TBAs now have JSAPs in place for which priority activities may be chosen for implementation. (b). Tuli-Karoo TBA - A TDA was developed for this TBA, and further work is required to develop a JSAP and follow up on its implementation. (c) Sand and Gravels TBA (Malawi/Zambia), Cuvelai Delta and Etosha Pan Alluvial TBA (Angola/Namibia) and Ruvuma Delata Coastal Sedimentary TBA (Mozambique/Tanzania) - The process of development of these TBAs has not yet begun and hence TDAs will be the starting point. The additional financing will support the upscaling of data and information dissemination and engagement with national, regional and global stakeholders to increase collaboration and cross support to investments and processes, including exchanges between SADC and IGAD (Horn of Africa Groundwater Management Program). 6 Davies, Jeffrey, Nick S. Robins, John Leonard Farr, James Sorensen, Phillip Beetlestone, and Jude Cobbing. 2012. Identifying transboundary aquifers in need of international resource management in the Southern African Development Community region. Hydrogeology Journal Vol 21 pages 321-330. Page 12 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) 25. Sub-component 2.1 will support the development of groundwater-related knowledge and information and its dissemination to stakeholders (US$1.6 million). Activities will seek to ensure that knowledge products are inclusive. To achieve this objective, the project will support the further expansion of the SADC-Groundwater Information Portal to produce sectoral and thematic groundwater overviews at the regional level that integrate gender and social inclusion considerations. Further TDAs and JSAPs will be conducted under this sub-component. Work in the transboundary aquifers (TBAs) will include, i), detailed hydrogeological investigations in selected TBAs ii) further projects to generate TDAs and JSAPs. Activities will be conducted in collaboration with institutions and agencies in charge of national groundwater management, represent major groundwater users and international river basins to promote equitable and inclusive data sharing, and increase groundwater knowledge in planning at national and regional levels. Low hanging quick-win interventions from existing JSAPs will be identified and implemented under this subcomponent. A deliberate focus on gender and social inclusion aspects will be made in selecting and implementing activities from the JSAPs. The sub- component will further support the Member States in conducting groundwater studies, preparing monitoring plans, and compiling groundwater data to produce groundwater assessments. Further studies will include i) valuation of groundwater especially in TBAs; ii) Island and coastal aquifers; iii) Groundwater Dependent Ecosystems; iv) water, energy, food and environment nexus; and v) Groundwater in Megacities in the region especially those in transboundary aquifers and coastal areas. These knowledge activities will be included in the Groundwater Action Plans. Further support will be provided under this component to expand the SADC Groundwater Literature Archive (SADC-GLA) with more documents. Finally, the AF will promote knowledge sharing through workshops, platforms, and networks that ensure that the vulnerable (physically challenged), women and girls have equal access to all the knowledge management products. 26. Sub-Component 2.2 will support advocacy and outreach (US$0.4 million). Activities under this sub-component aim to raise awareness (advocacy) on the critical role of groundwater in supporting sustainable and resilient livelihoods and equitable economic development and in building resilience against climate-related shocks like floods and droughts. Activities will be implemented with the National Focal Persons (NFPs) as well as other enablers (for example, officials, academics, practitioners, civil society) to promote knowledge sharing in the region through data/information sharing events, platforms and networks and will seek to promote equal representation of women in these events. The additional financing will be allocated towards upscaling dissemination of data and information to support sustainable and resilient livelihoods and equitable economic development and in building resilience against climate-related shocks like floods and droughts, for example through direct engagement with stakeholders in TBAs and engagement with national, regional and global stakeholders to increase collaboration and cross support to investments and processes. 27. Component 3 – Building resilient livelihoods and inclusive groundwater management (US$1.15million). This component aims at improving the skills and livelihoods of communities through the promotion of innovative groundwater management solutions and infrastructure through grants to projects that demonstrate potential for scaling up and replication. The component will deliberately focus on supporting the poor communities to adapt to the unavoidable impacts of climate change on water resources. To achieve this objective, the project will support management approaches that consider the key role that communities, including women and vulnerable populations, play as the principal promoters, educators and leaders of home and community-based water and sanitation practices. 28. Sub-component 3.1 will increase the support to the implementation of a base-grant scheme for all 16 SADC member states (US$0.29 million). The base-grant scheme will support the piloting and upscaling of sustainable groundwater infrastructure approaches, including surface water harvesting, managed aquifer recharge, community led initiatives at preserving GDEs in both national and transboundary aquifers and innovative borehole design for different environments or uses. The project will further encourage local led agriculture intervention projects that demonstrate conjunctive utilisation of water resources and the use of clean energy systems to pump the water. It will also support the expansion of Page 13 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) groundwater monitoring networks in national and transboundary aquifers to build the knowledge base on the quantitative and qualitative status of the groundwater resources. This approach will help develop and pilot infrastructure solutions and management approaches for the long-term sustainable and inclusive use of groundwater that support socio-economic development while ensuring equitable benefits for women and other vulnerable populations. The AF will devote attention to the ability of traditionally excluded groups to organize, adapt, monitor and enforce institutional arrangements that govern their use of natural resources such as groundwater, recognizing the central role of women as providers and users of water and guardians of the environment. Lastly activities will support member states to identify and leverage resources for infrastructure investments addressing identified priorities in the TDAs and JSAPs at national and transboundary levels. 29. Sub-component 3.2 will increase support for the implementation of a competitive-grant scheme to promote innovation and synergies (US$0.86 million). To promote innovation and synergies with national and regional programs, a competitive grant will be made available to the member states who submit proposals that promote innovative groundwater infrastructure solutions that build synergies with scalable projects programs, multi-stakeholder involvement and ability to attract private sector co-financing. Proposals under this scheme will be evaluated on their technical and operational soundness, innovative aspects, and ability to strengthen inclusive and equitable groundwater management. Examples include i) innovative and climate-informed well and borehole designs, drilling and operation, ii) innovative monitoring, iii) state-of-the-art water point management, which consider the needs of women and girls and promote integrated WASH to reduce the spreading of disease, and iv) electric/solar driven pumping technologies. The most successful projects are expected to promote innovation at a larger scale, leveraging other programs and creating synergies beyond their pilot scope. Page 14 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) Table 1: Scaled up and new activities supported by the AF Project components Scale-up / Additional Financing new Component 1. Capacity building for sustainable groundwater management (US$1.42 million) Sub-component 1.1 Institutional capacity Scale-up • Establish additional 8 NFGs in 8 SADC Member States building at the national and regional level • More YPs with more women • CB Plan updated and implemented • Implementation of quick wins in PLI Roadmaps New • Implementation of some national and basin level Groundwater Action Plans Sub-component 1.2 - Strengthen the SADC- Scale up • Leveraging on IW-Learn resources for branding GMI to act and perform as the SADC region’s center of excellence Sub-component 1.3 - Operating cost of the Scale-up • Contribution to PIU SADC-GMI to implement the project and build internal capacity Component 2. Knowledge development, dissemination, and advocacy (US$2 million) Sub-component 2.1 - Development of Scale up • Undertake more studies in TBAs groundwater-related knowledge and • Undertake further projects to generate TDAs and JSAPs in information and its dissemination to additional TBAs stakeholders • Undertake studies to understand regional groundwater challenges, for example, valuation of groundwater, island states and coastal aquifers, GDEs, WEFE nexus, GW in megacities. Sub-component 2.2 - Advocacy and outreach Scale up • Scale up dissemination of data and information to support sustainable and resilient livelihoods and equitable economic development and in building resilience against climate-related shocks like floods and droughts. Component 3. Building resilient livelihoods and inclusive groundwater management (US$1.15 million) Sub-component 3.1 - Implementation of a Scale up • Increase budget to scale up implementation of basic grant base-grant scheme pilot projects in all Member States Sub-component 3.2 - Implementation of a New • Increase competitive sub-grant budget to scale up competitive-grant scheme implementation of innovative pilot projects Additional Financing Total US$4.57 Million B. Revised Results Framework 30. The additional financing will contribute to the project’s objectives and expected outcomes generated from activities under each of the three project components. Even though there will be no change to the PDO indicators and their targets, the AF will lead to some changes at the intermediate levels. In particular, two new intermediate indicators would be introduced (Table 2), and four indicators would be revised. Details of the changes are laid out in the revised results framework. Page 15 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) Table 2: Changes to the Results Framework under the AF Indicator type Revised (Y/N) Remarks PDO indicators N No changes to baseline and target values. Intermediate indicator Y 2 new indicators introduced and revised 4 indicators III. APPRAISAL SUMMARY A. Technical, Economic and Financial Analysis 31. Groundwater is a fundamental resource for social, economic and environmental sustainability across the 16 Member States of the SADC. The wellbeing of women, men and other vulnerable populations’ livelihoods, food security, ecosystems, natural habitats, industries and growing cities are directly reliant on groundwater. It is estimated that groundwater is the primary source of drinking water for 70 percent7 of the 345 million8 people in the region. Access to and quality of groundwater directly affects the wellbeing of households, with a greater burden being imposed on women, children and other vulnerable populations. Groundwater is also the main water source for livestock, subsistence farming and family farms. In sectors ranging from commercial farming to mining to factories, economic growth is increasingly dependent on groundwater, with an estimated 20 percent of irrigation water needs in the SADC region being supplied by groundwater. 32. The direct and indirect contribution of groundwater in economic terms ranges along with its contribution to numerous economic sectors and society. The value of groundwater is difficult to assess accurately in terms of its ability to contribute to income generation and poverty reduction, including women and other vulnerable groups. While groundwater underpins the livelihoods and wellbeing of vast amounts of people in Eastern and Southern Africa, it provides water for livestock, and enables ecosystem services and tourism, its contribution to such uses is more difficult to value compared to its use as a critical production input, for example, as an input into mining or to commercial agriculture. Due to the lack of data and institutional frameworks, and in part due to its subsistence use across vast terrains, groundwater in SADC is generally undervalued. However, economic studies considering differences in access and use can help raise awareness and inform decision-making. 33. Investments in sub-grant projects will be undertaken under Component 3 of the project but have not yet been identified or defined. Therefore, economic analyses have not yet been undertaken and are not included in this Project Paper. 34. When the specific sites and sub-grant projects have been selected, the SADC-GMI will contract an economist with expertise in groundwater uses to assist sub-grantees in performing economic analyses of the projects and the outcome of such analyses – including, potentially, ex-post project analyses – will contribute to a database of groundwater valuations and economic returns of various infrastructure investments. 35. Analysis is also proposed to be undertaken on the contribution of groundwater to the overall economy. For example, in any country, the use of groundwater as a contribution to domestic agriculture, or mining, etc. As groundwater usage varies so much between countries, such studies would be done country by country. Furthermore, the AF will contribute to generate knowledge on the value of groundwater through the inclusion, as part of the SADC-GMI’s transboundary 7 IW-Learn 5th targeted regional workshop for GEF International Waters Projects in Africa (2019). 8 Total population in 2018, SADC Facts and Figures. SADC.int. Page 16 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) diagnostic analyses of modules on how groundwater from transboundary aquifers is being used and the value derived from them. The objective would be to use economic analyses to understand the trade-offs between different groundwater uses, focusing on maximizing the benefits of groundwater usage and conflict prevention. 36. Most of the project’s activities are soft components, and the impacts regarding GHG emissions are also limited. Yet, groundwater projects such as this one will carry significant adaptation co-benefits. The sub-grant component will promote energy-efficient. A climate-risk assessment has been performed using World Bank screening tools. Although the project locations are exposed to increased climate hazards ranging from drought to floods, the climate risk to the project objectives is considered low, considering that the project components are designed to tackle the root causes for the vulnerability of water users to climate variability. B. Financial Management 37. The financial management (FM) assessment of the SADC-GMI (the project implementing unit) was carried out in accordance with the World Bank’s Operational Policy and the Financial Management Manual issued by the Financial Management Board and kept as a living document. The required financial management questionnaire was jointly completed by the SADC-GMI Governance and Institutional Specialists. The objective of the assessment was to determine whether the SADC-GMI has acceptable financial management arrangements, which will ensure: (a) that the project funds are used only for the intended purposes efficiently and economically, (b) the preparation of accurate, reliable and timely periodic financial reports, and (c) safeguard of the assets. Based on the financial management assessment, an overall risk rating of financial management is rated “moderate”, and the financial management arrangements satisfy the World Bank’s minimum requirements. 38. Planning and Budgeting. The project’s planning and budget preparation for the AF will be coordinated by the SADC- GMI Administration and Finance Officer, who is a qualified accountant. The SADC-GMI Executive Director will review the budget before submission to the SADC-GMI Board for approval. Once it is approved, the budget will be uploaded to Xero (financial accounting software). The system has automated control functionality to prevent exceeding budgeted expenditures. The Board will monitor the implementation of the budget. 39. All the financial management aspects in the parent project including accounting, staffing internal control and auditing, reporting disbursement arrangements and supervision plan will remain the same in the AF. C. Procurement 40. Procurement under the additional financing will will follow the same arrangements as the parent project in accordance with the World Bank’s Procurement Regulations for Investment Project Financing (IPF) Borrowers for Goods, Works, Non - Consulting and Consulting Services, dated November 2020. The project will be subject to the World Bank’s Anticorruption Guidelines, dated October 15, 2006, revised in January 2011, and July 1, 2016. The project will use the Systematic Tracking of Exchanges in Procurement (STEP) system to plan, record and track procurement transactions. 41. The SADC-GMI adheres to its internal Finance and Procurement Manual that meets the World Bank Group core procurement policy objectives, value for money, economy, efficiency, effectiveness, integrity, transparency, fairness, and accountability. The SADC-GMI has been assessed using the World Banks Procurement Risk Assessment Management System (PRAMS) to determine the project risks, risk mitigation measures, responsibilities, timing and monitoring process Page 17 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) and procurement performance monitoring during implementation. The four risk elements have been assessed, and the results are as follows: 42. Procurement Regulatory Framework and Management Capability – The SADC-GMI has a Finance and Procurement Manual in place and an active website that publicizes procurement opportunities. The SADC-GMI produces annual work plans and procurement plans under the current World Bank-financed project. A Procurement and Grants Management Specialist and a Project Assistant are in place to manage procurement activities. The SADC-GMI is deemed capable of executing the procurement activities under additional financing, which may comprise mostly small value minor civil works, small value off the shelf goods, consultancy assignments for firms and individuals, travel and workshops. 43. Integrity and Oversight – The SADC-GMI has adequately segregated the various procurement duties and is subject to an external audit. A review of management letters will also be carried out to determine if additional measures need to be put in place. Based on the risk assessment, oversight measures may need reinforcing depending on implementation arrangements. 44. Procurement Process and Market Readiness - Under the parent project, The SADC-GMI has put in place acceptable documentation to guide the procurement process. Under the additional financing procurement plans, opportunities, evaluation outcomes and award of contracts are published on the World Bank’s external website. The SADC-GMI will also be requested to improve the information available on its website. Considering the planned activities and the parent project's experience, there are many vendors in South Africa and the SADC region for the type of consultancy services, minor civil works and off-the-shelf goods required. 45. Project Procurement Profile and Complexity - The procurements will comprise a selection of consultant firms and individuals, procurement of small-value works and off-the-shelf goods and procurement of services for travel and accommodation. Under the parent project, where there would be no complex and high-value contracts, The SADC-GMI has shown the capability to manage such procurements and the capability to have acceptable documentation in place. 46. A Project Procurement Strategy for Development has been developed to document the procurement capability and operational context, the market conditions for the proposed procurements, the procurement risks, key stakeholders, and the best-fit approaches. Based on the above information, the Project Procurement Risk is rated Moderate. D. Legal Operational Policies . Triggered? Projects on International Waterways OP 7.50 Yes Projects in Disputed Areas OP 7.60 No . Page 18 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) 47. Projects on International Waterways OP 7.50. According to the World Bank’s Operational Policy OP 7.50, the SADC- Secretariat notified all member states about the original financing on February 8, 2021. As of March 8, 2021, no responses have been received from any of the 16 SADC member states. The memo on the notification process dated April 13, 2021, was approved by the Regional Vice President. The additional activities supported as part of the additional financing scale up some of the investments of the original financing but the scope of investments in relation to use or risk of pollution of international waterways is the same as per the original design. As such, no additional step is required as per OP 7.50. E. Environmental and Social 48. The GEF grant will support the enhancement of activities under the three Components of the CIWA-grant project (P175355). The overall project investment, supported by both the CIWA and GEF grant, will positively contribute to the sustainable management of groundwater resources within the SADC countries. It will provide reliable and safe water resources to local communities, improving hygiene practices and mitigation against the spread of waterborne disease. Any consultations undertaken will seek to ensure the possibility for equitable and inclusive participation, particularly for women and vulnerable populations. 49. The project invests primarily in technical aspects to support institutional capacity building, generation and dissemination of knowledge and collaboration on groundwater in the SADC region. There is no physical footprint for the investments under components 1 and 2. The GEF grant will support the enhancements of financial planning, transboundary aquifer interventions and further studies to address pertinent groundwater challenges and upscaling of dissemination of information. Strategic small-scale infrastructure development to build resilience and promote inclusiveness will take place under component 3 and will support considerations for climate-smart technologies during the design and implementation of innovative pilot projects. Due to the nature and scale of these activities to be financed under component 3, the environmental and social risk rating is considered moderate at this stage. Activities to be financed under component 3 (Building resilient livelihoods and inclusive groundwater management) include drilling wells and monitoring boreholes, small sand dams and riverbank infiltration systems, and hand-dug wells. The impacts may include localized loss of vegetation, soil erosion and degradation, minor soil and surface water pollution and minor dust and noise emissions. The activities are further likely to generate small-scale construction hazardous and non-hazardous waste, occupational health and safety concerns to both contracted workers and communities, including the spread of communicable diseases, sexually transmitted diseases and possibly minor risks of gender-based violence, sexual exploitation or sexual harassment and issues relating to labor and working conditions. Since the impacts are considered localized and of short duration, they can be mitigated by engaging good practice measures and preparing site-specific environmental and social management plans (ESMPs). It is not expected that the project will require land acquisition or result in loss of livelihoods and assets as the investments are expected to take place within already established community areas. Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities are present in several SADC member states. However, the project areas and countries where such sub-grant projects will take place are not yet known. This will be determined during the environmental and social assessment for the respective sub-grant projects. The Environmental and Social Management Framework (ESMF) makes provisions for the screening and advanced identification of the presence and collective attachment to proposed project sites of indigenous peoples/Sub-Saharan African historically underserved traditional local communities. The ESMF further facilitates identifying potential impacts on indigenous people/sub-Saharan African historically underserved traditional local communities during sub-grant project level site selection. 50. The Environmental and Social Management Framework (ESMF) prepared under the parent project (P175355) was updated for the AF. The ESMF includes the screening of sub-grant projects for environmental and social risks and the preparation of site-specific Environmental and Social Assessments (ESA) such as ESMPs, including aspects to address both Page 19 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) workers’ health and safety and communities, sexual exploitation and abuse and sexual harassment (SEA/SH), labor management practices, and chance finds procedures. The ESMF includes recommendations for the prevention and management of COVID-19 during construction and stakeholder engagement activities, which will be further developed at the sub-grant project level. 51. The AF will adopt and update the Stakeholder Engagement Plan (SEP) prepared under the parent project. The plan identifies the various stakeholders and sets out a strategy on how they will be engaged throughout the life cycle of the project; how and what project information will be shared at the different levels; how stakeholder concerns and feedback will be considered during the project design and implementation phases and how the project intends to manage grievances through the implementation of a project Grievance Mechanism. 52. The updated ESMF for the AF was disclosed on March 23, 2021 (English version only) and in all three languages on April 9, 2021, on the SADC-GMI website. A separate and updated Environmental and Social Commitments Plan (ESCP) was prepared for the AF. The updated SEP and ESCP, and Labour Management Plan, including a Code of Conduct and SEA/SH Action Plan, were redisclosed in-country and by the World Bank on May 18, 2022. 53. Gender and Social Inclusion. Socially and culturally defined gender roles in water management often reflect differences in accessing and using water resources between men and women. While women are mainly responsible for managing and getting water at the household level, gender equality is usually neglected at the decision-making level. Groundwater management is not an exception. It is even more important to acknowledge social and gender dimensions, especially in poor rural communities, which predominantly rely on groundwater as the only source of drinking water. The SADC-GMI is one of the pioneering institutions that recognize the importance and bring inclusiveness in groundwater management as one of its core principles. In the Sub-grant Manual, approved in December 2017, each sub-grant project must ensure women’s participation and establish sector-specific gender indicators to monitor through project implementation. On the recruitment end, the SADC-GMI has also tried to offer equal opportunities for male and female students under its Young Professionals Program. Furthermore, the SADC-GMI intends to strengthen its monitoring capacity, as mentioned in the Lessons Learned section. Moving forward, the SADC-GMI renews its commitment to mainstream gender empowerment and social inclusion under the Project. In particular, it will implement deliberate strategies in thematic areas on policy and strategy, M&E, training and capacity building, knowledge products, implementation of activities and participation in expert panels. In particular, the SADC-GMI will work with a gender consultant hired under the United States Agency for International Development (USAID)-funded Resilient Waters Program9 to develop tools to monitor compliance with the provisions in the Sub-grant Manual (see also the SADC-GMI Annual Report 2019-2020).10 54. Institutional Capacity: Even though SADC-GMI has a proven track record of implementing World Bank-funded projects, it has limited in-house capacity to manage Environment and Social (E&S) risks and impacts. The SADC-GMI has established an in-house E&S resource to manage environmental and social risks for both the parent project and AF and recently appointed an Environmental and Social Management Specialist. 55. Citizen engagement. The updated SEP reflects stakeholders across levels of engagement, ranging from the SADC Ministerial level to community level. Each member state has a National Focal Person and the aim is to, at national level, establish National Focal Groups (NFG) in all member states. The NFGs will have 5-12 members from sectors with expertise 9 The USAID funded Resilient Waters Program (RWP) is supporting the SADC-GMI through a Gender Equality, and a Social Inclusion Consultant tasked with the development of a SADC-GMI GESI mainstreaming strategy, Implementation plan and documentation of a Gender Equality and Social Inclusion (GESI) compliance in all SADC Member States 10 SADC-GMI. 2021. Annual Report 20119-2020. https://sadc-gmi.org/wp-content/uploads/2021/02/SADC-GMI-AR_WEB-Feb-2021.pdf Page 20 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) and interest in groundwater, such as academics, NGOs/CSOs, research institutions, or private sector actors. The NFGs will implement the sub-grant manual in order to identify the best community level projects, and act as liaison and supervise the implementation of approved projects. The NFG will engage community level stakeholders in accordance with the sub- grant manual and where projects are funded, develop site specific engagement plans. National heads of water departments in the member states will be engage annually in the SADC Water Resources Technical Committee to assess the implementation of project activities and express their opinion on the alignment of the implementation in line with the regional agenda. 56. Grievance Redress Mechanism (GRM). The AF will continue to rely on the GRM established for the parent project. Feedback and grievances can be submitted through several avenues. On a project level, through the SADC GMI office and on the national level either through the NFG or the national focal person. Additional channels of communication at the local level will be established as part of the site-specific plans for grantees. Issues should be resolved at the lowest possible level but referred to higher levels in the organization where a local resolution is not possible. The SADC-GMI will maintain a database of all incoming grievances and how they have been resolved. All incoming grievances will be acknowledged to the originator within 48 hours after they are received with an indication of a roadmap of when and how the grievance will be resolved. The detailed process is provided in the SEP for the AF. IV. KEY RISKS 57. Based on the World Bank’s Systematic Operational Risk-Rating Tool, the project's overall risk is evaluated as Moderate. All risks for the project have been assessed as either moderate or low. V. GRIEVANCE REDRESS SERVICE 58. Communities and individuals who believe that they are adversely affected by a project supported by the World Bank may submit complaints to existing project-level grievance mechanisms or the Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the Bank’s independent Accountability Mechanism (AM). The AM houses the Inspection Panel, which determines whether harm occurred, or could occur, as a result of Bank non- compliance with its policies and procedures, and the Dispute Resolution Service, which provides communities and borrowers with the opportunity to address complaints through dispute resolution. Complaints may be submitted to the AM at any time after concerns have been brought directly to the attention of Bank Management and after Management has been given an opportunity to respond. For information on how to submit complaints to the Bank’ s Grievance Redress Service (GRS), please visit http://www.worldbank.org/GRS. For information on how to submit complaints to the Bank’s Accountability Mechanism, please visit https://accountability.worldbank.org. Page 21 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) VI SUMMARY TABLE OF CHANGES Changed Not Changed Results Framework ✔ Components and Cost ✔ Implementing Agency ✔ Project's Development Objectives ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ VII DETAILED CHANGE(S) COMPONENTS Current Component Name Current Cost Action Proposed Component Proposed Cost (US$, (US$, millions) Name millions) Capacity building for 4.70 Revised Capacity building for 6.12 sustainable groundwater sustainable management groundwater management Knowledge development, 1.40 Revised Knowledge 3.40 dissemination and advocacy development, dissemination and advocacy Building resilient livelihoods 2.90 Revised Building resilient 4.05 Page 22 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) and inclusive groundwater livelihoods and inclusive management groundwater management TOTAL 9.00 13.57 Expected Disbursements (in US$) DISBURSTBL Fiscal Year Annual Cumulative 2021 0.00 0.00 2022 0.00 0.00 2023 0.00 0.00 2024 0.00 0.00 2025 0.00 0.00 2026 0.00 0.00 SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Latest ISR Rating Current Rating Political and Governance ⚫ Low ⚫ Low Macroeconomic ⚫ Low ⚫ Low Sector Strategies and Policies ⚫ Moderate ⚫ Moderate Technical Design of Project or Program ⚫ Low ⚫ Low Institutional Capacity for Implementation and ⚫ Moderate ⚫ Moderate Sustainability Fiduciary ⚫ Moderate ⚫ Moderate Environment and Social ⚫ Moderate ⚫ Moderate Stakeholders ⚫ Low ⚫ Low Other Overall ⚫ Moderate ⚫ Moderate Page 23 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) LEGAL COVENANTS2 LEGAL COVENANTS – Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) Sections and Description OPS_LEGAL_CONVENANT_CHILD_NODATA No information available Conditions Type Financing source Description Effectiveness Trust Funds (a) The execution and delivery of this Agreement on behalf of the Recipient and the Project Agreement on behalf of the Project Implementing Entity have been duly authorized or ratified by all necessary governmental and corporate action. Type Financing source Description Effectiveness Trust Funds (b) The Subsidiary Agreement referred to in Section I.B of Schedule 2 to this Agreement has been executed on behalf of the Recipient and the Project Implementing Entity, and is legally binding upon the Recipient and the Project Implementing Entity in accordance with its terms. Page 24 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) VIII. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY: Eastern and Southern Africa RESULT_NO_PDO Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 Project Development Objective(s) The Project Development Objective is to develop capacity and knowledge for inclusive groundwater management and use in the SADC region at national and transboundary levels. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 Capacity and knowledge for inclusive groundwater management and use in the SADC region developed Percentage stakeholders reporting using capacity and knowledge products developed by the project 0.00 60.00 for their work (Percentage) Percentage of stakeholders applying inclusive groundwater management and use practices as 0.00 30.00 promoted by the project (Percentage) Number of direct project beneficiaries. (Number) 84,000.00 84,000.00 95,000.00 160,000.00 209,000.00 Number of direct female project beneficiaries (Number) 44,500.00 44,500.00 50,350.00 63,600.00 110,000.00 PDO Table SPACE Page 25 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) Intermediate Results Indicators by Components RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 Capacity building for sustainable groundwater management National Focal Groups established and operational in SADC Member 8.00 12.00 16.00 States (Number) Rationale: Additional financing will establish an additional 8 NFGs in 8 SADC Member States Action: This indicator has been Engage More Young Professionals with more women Revised Capacity Building Plan updated and implemented Implementation of quick wins in PLI Roadmaps Strategic Partnerships (MoUs) established with national, regional and international groundwater 17.00 22.00 27.00 35.00 40.00 institutions (including RBOs) (Number) Initiatives successfully implemented jointly with national, regional and international 20.00 26.00 35.00 50.00 65.00 groundwater partners (Number) SADC-GMI Satisfactory Performance Evaluations on project Satisfactory Satisfactory Satisfactory Satisfactory Satisfactory management (Text) Rationale: Action: This indicator has been GEF requirement to leverage on IW-Learn resources Revised Implement national and basin level Groundwater Action Plans 0.00 6.00 8.00 (Number) Page 26 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 Action: This indicator is New Knowledge development, dissemination, and advocacy Expanded SADC-Groundwater Information Portal running on a fully integrated data management No No No Yes Yes system: collects, stores, connects and makes available groundwater information (Yes/No) Records included in the Groundwater Literature Archive 4,530.00 4,590.00 4,650.00 4,710.00 4,830.00 (GLA) (Number) Number of groundwater studies at the national and transboundary 14.00 16.00 20.00 level completed. (Number) Rationale: Undertake more studies in TBAs Action: This indicator has been Revised Undertake studies to understand regional groundwater challenges, for example, valuation of groundwater, island states and coastal aquifers, GDEs, WEFE nexus, GW in megacities. Building resilient livelihoods and inclusive groundwater management Number of small-grant projects 13.00 22.00 29.00 implemented (Number) Rationale: Action: This indicator has been This is a base grant that can be accessed by all 16 member states Revised Number of communities (women and men) organized and trained for 3.00 3.00 3.00 6.00 9.00 participatory groundwater Page 27 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 management (Number) Implementation of a competitive- 0.00 5.00 9.00 grant scheme (Number) Rationale: Action: This indicator is New This is a new indicator to encourage innovative approaches IO Table SPACE Monitoring & Evaluation Plan: PDO Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection A tool for measuring Survey / Percentage stakeholders reporting using impact was developed and Annually Progress Progress review SADC-GMI capacity and knowledge products is being administered Reports developed by the project for their work A tool for measuring impact was developed and Survey / Percentage of stakeholders applying will be administered upon Annually Progress Progress review SADC-GMI inclusive groundwater management and implementation of the sub- Reports use practices as promoted by the project grant programme and other initiatives Progress Annually Progress review SADC-GMI Number of direct project beneficiaries. Reports Number of direct female project Annually Progress Progress review SADC-GMI beneficiaries Reports Page 28 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) ME PDO Table SPACE Monitoring & Evaluation Plan: Intermediate Results Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Survey / Key informant SADC-GMI National Focal Groups established and Annually Progress interviews World Bank operational in SADC Member States Reports Strategic Partnerships (MoUs) established Progress Annually Progress review SADC-GMI with national, regional and international Reports groundwater institutions (including RBOs) Initiatives successfully implemented Progress Quaterly Quarterly reporting SADC-GMI jointly with national, regional and reports international groundwater partners Progress Key informant SADC-GMI Satisfactory Performance Annually Reports SADC-GMI interviews Evaluations on project management Field surveys Implement national and basin level annual Groundwater Action Plans Expanded SADC-Groundwater Functionality Document review Information Portal running on a fully of the GIP – Quaterly Key informant SADC-GMI integrated data management system: Progress interviews collects, stores, connects and makes reports available groundwater information Annual Records included in the Groundwater Annually Document review SADC-GMI reports Literature Archive (GLA) Page 29 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) Bibliometric Document analysis Number of groundwater studies at the review Annually Systematic literature SADC-GMI national and transboundary level Document review completed. review Progress Number of small-grant projects Annually Report reviews SADC-GMI reports implemented Number of communities (women and Progress Annually Report reviews SADC-GMI men) organized and trained for Reports participatory groundwater management Implementation of a competitive-grant scheme ME IO Table SPACE Page 30 of 31 The World Bank Additional Financing for Sustainable Groundwater Management in SADC Member States Project Phase 2 (P176607) Page 31 of 31