REPUBLIC OF MOZAMBIQUE MINISTRY OF ECONOMY AND FINANCE Regional Emergency Preparedness & Access to Inclusive Recovery Program (REPAIR) Multi-Phase Programmatic Approach (MPA) Phase 1 P181014 Draft ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) May 22, 2024 1|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Republic of Mozambique (the Recipient) will implement the Regional Emergency Preparedness & Access to Inclusive Recovery (P181014) MPA Program (the Project) in Mozambique, with the involvement of the Ministry of Economy and Finance (MEF), and supported by ARC Ltd. as an implementing partner in participating MPA countries, including Mozambique, as set out in the Financing Agreement. The International Development Association (the Association) has agreed to provide financing for the Project, as set out in the referred agreement. 2. The Recipient shall ensure that the Project is carried out in accordance with the Environmental and Social Standards (ESSs) and this Environmental and Social Commitment Plan (ESCP), in a manner acceptable to the Association. The ESCP is a part of the Financing Agreement. Unless otherwise defined in this ESCP, capitalized terms used in this ESCP have the meanings ascribed to them in the referred agreement. 3. Without limitation to the foregoing, this ESCP sets out material measures and actions that the Recipient shall carry out or cause to be carried out, including, as applicable, the timeframes of the actions and measures, institutional, staffing, training, monitoring and reporting arrangements, and grievance management. The ESCP also sets out the environmental and social (E&S) instruments that shall be adopted and implemented under the Project, all of which shall be subject to prior consultation and disclosure, consistent with the ESS, and in form and substance, and in a manner acceptable to the Association. Once adopted, said E&S instruments may be revised from time to time with prior written agreement by the Association as described at next paragraph. 4. As agreed by the Association and the Recipient, this ESCP will be revised from time to time if necessary, during Project implementation, to reflect adaptive management of Project changes and unforeseen circumstances or in response to Project performance. In such circumstances, the Recipient, through the MEF and the Association agree to update the ESCP to reflect these changes through an exchange of letters signed between the Association and the Recipient. Through the Minister of the Ministry of Economy and Finance. The Recipient shall promptly disclose the updated ESCP. 2|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Regional Emergency Preparedness & Access to Inclusive Recovery Program (REPAIR) MPA Phase 1 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY MONITORING AND REPORTING A REGULAR REPORTING Submit quarterly reports to the Ministry of Economy and Association throughout Project Finance (MEF) Prepare and submit to the Association regular monitoring reports on the environmental, implementation. ARC Ltd social, health and safety (ESHS) performance of the Project, including but not limited to Submit each report to the Association the implementation of the ESCP and SEP, and reporting on compliance with ESF E&S no later than 15 days after the end of requirements by distribution partners receiving funds under the REPAIR Fund. each reporting period. B INCIDENTS AND ACCIDENTS Notify the Association no later than 48 MEF hours (24 hours‘ notice for SEA/SH ARC Ltd Promptly notify the Association of any incident or accident related to MEF-level Project incidents or accidents resulting in activities which has, or is likely to have, a significant adverse effect on the environment, fatalities or serious injuries) after the affected communities, the public or workers, including, inter alia, cases of sexual learning of the incident or accident. exploitation and abuse (SEA), sexual harassment (SH), and accidents that result in death, serious or multiple injury. Provide sufficient detail regarding the scope, severity, and Forward any notifications or reports possible causes of the incident or accident, indicating immediate measures taken or that received from distribution level to the are planned to be taken to address it, and any information provided by any contractor Association no later than 48 hours (24 and/or supervising firm, as appropriate. hours‘ notice for SEA/SH incidents or accidents resulting in fatalities or In the case of significant incidents or accidents occurring at the level of distribution serious injuries) after learning of the channels, those channels are expected to follow above Bank guidelines on reporting incident or accident such occurrences. Where such incidents occur on activities funded through the REPAIR Fund, MEF should be copied on the distribution channel’s notifications and reports sent to the Association. Provide subsequent report to the Association within a timeframe Subsequently, at the Association’s request, prepare a report on the incident or accident acceptable to the Association. that occurred at MEF or distribution channel level and propose any measures to address it and prevent its recurrence. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE a) MEF Focal point is appointed no MEF a) Establish and maintain a Project Focal Point within the MEF to ensure that the eligible later than one month after the ARC Ltd distribution channels are fit for purpose and effective at all times by: Effective Date, and thereafter maintains the position throughout Project implementation. 3|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Regional Emergency Preparedness & Access to Inclusive Recovery Program (REPAIR) MPA Phase 1 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 1) screening activities for which funding is being requested by the distribution channels to determine if they are eligible, using the Exclusion list included in the Governance Framework and Project Operations Manual (POM) (The Exclusion list is b) ARC Ltd Focal Point hired or also included in Annex 1 of this ESCP); appointed no later than one month after the Effective Date, and 2) ensuring funds allocated to designated national delivery channels, including World thereafter maintain the position Bank compliant social cash transfer projects, Micro, Small and Medium Enterprise throughout Project Implementation (MSME) Finance channels, national disaster funds and other selected channels comply with World Bank ESF standards and Project eligibility criteria provided in the Project’s Governance Framework and POM; 3) facilitate the timely collection of relevant E&S compliance and performance data for the ex-ante audit of the distribution channels by ARC Ltd, and for the ex-post audit following disbursement of a Financial Instrument and, 4) Mobilize additional staff or consultants as needed on short-term and long-term engagements in accordance with capacity building and institutional assessment needs and for monitoring of distribution channels; b) MEF shall also rely on the support of ARC Ltd’s regional environmental and social (E&S) specialist and country-level dedicated Focal Point and (as needed) other ARC consultants to provide support and capacity building to MEF to ensure compliance with Bank standards and the POM. 1.2 ENVIRONMENTAL AND SOCIAL INSTRUMENTS a) Adopt the draft SEP by Appraisal, and MEF a) Develop, adopt, and implement the SEP with ARC Ltd. support, in a form and complete and disclose final version no ARC Ltd. substance acceptable to the Association. later than one month after the Project Effective Date. Thereafter implement it b) Prepare adopt and implement a Project Operations Manual (POM) with ARC Ltd. throughout Project implementation. support, that will cover Bank ESS requirements for activities to be funded by the REPAIR Fund, including OHS, SEA/SH and other ESS requirements to be met by MEF, b) and c) Prepare and adopt a POM to be as well as the Exclusion List of what may be financed under the project. reviewed and cleared by the Association no later than one month after the Project Effective Date. Thereafter implement POM guidelines, and review 4|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Regional Emergency Preparedness & Access to Inclusive Recovery Program (REPAIR) MPA Phase 1 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY c) POM shall include procedures to screen, verify and monitor all designated and update them as needed throughout distribution channels to ensure that they have existing E&S instruments for their Project implementation. current (i.e. non-REPAIR) projects, including—but not limited to—Environmental and Social Management Frameworks (ESMFs), Environmental and Social d) Prepare and adopt the ESMF no later Management Plans (ESMPs), Labor Management Procedures (LMPs), SEA/SH Action than one month after Project Effective Plans, etc. Date. Require and monitor use of instrument by relevant distribution d) For potential current and future distribution channels which do not have any current channels throughout Project ESF-compliant E&S risk management procedures or instruments in place, nor similar implementation. procedures or instruments which are materially consistent with relevant Bank ESSs, MEF and ARC Ltd will prepare and require distribution channels to implement a climate crisis-oriented ESMF which will be similar to the CERC ESMF developed in Mozambique, and adhering to the activity funding eligibility criteria (including the Exclusion List) to be found in the Governance Framework and the POM. 1.3 TECHNICAL ASSISTANCE Throughout Project implementation. MEF Ensure all TA-supported activities to be carried out for the Project are consistent with ARC Ltd the ESF, and that TORs to be prepared by MEF and ARC shall include provisions for identifying and addressing potential E&S risks, and are carried out in accordance with terms of reference acceptable to the Association, that are consistent with the ESSs. Thereafter ensure that the outputs of such activities comply with the terms of reference. ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT PROCEDURES Adopt the labor management MEF procedures contained in the Project ARC Ltd MEF shall adopt and implement in its POM labor management procedures including, POM no later than one month after the where relevant, provisions on working conditions, management of workers relationships, Project Effective Date and thereafter occupational health and safety plans, code of conduct (including relating to SEA/SH), implement throughout Project forced labor, child labor, grievance arrangements for Project workers, and applicable implementation. requirements for consultants. Distribution channels that are already following ESF procedures shall ensure their Labor Management Procedures are followed for all activities funded through the REPAIR Fund, including grievance redress arrangements for their Project workers. 5|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Regional Emergency Preparedness & Access to Inclusive Recovery Program (REPAIR) MPA Phase 1 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS Establish worker grievance mechanism MEF no later than one month after Project ARC Ltd Establish and operate with ARC Ltd assistance a grievance mechanism for MEF Project Effective Date and thereafter maintain workers, consistent with Government HR, GBV/SEA/SH and Labor policies and with ESS2. and operate it throughout Project implementation. ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3.1 Ensure, with ARC Ltd support, that distribution channels receiving REPAIR funds comply Throughout Project Implementation. MEF with relevant ESS 3 standards, through their existing instruments and procedures and ARC Ltd criteria contained in the REPAIR Project POM. ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 Ensure, with ARC Ltd support, that distribution channels receiving REPAIR funds comply Throughout Project Implementation. MEF with relevant ESS 4 standards, including SEA/SH measures, through their existing ARC Ltd instruments and procedures contained in the REPAIR Project POM. ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT 5.1 Ensure, with ARC Ltd support, that distribution channels receiving REPAIR funds comply Throughout Project Implementation. MEF with relevant ESS 5 standards, through their existing instruments and procedures ARC Ltd contained in the REPAIR Project POM. ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES 6.1 Ensure, with ARC Ltd support, that distribution channels receiving REPAIR funds comply Throughout Project Implementation. MEF with relevant ESS 6 standards, through their existing instruments and procedures ARC Ltd contained in the REPAIR Project POM. ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES NOT RELEVANT FOR MOZAMBIQUE ESS 8: CULTURAL HERITAGE 8.1 Ensure, with ARC Ltd support, that distribution channels receiving REPAIR funds comply Throughout Project Implementation. MEF with relevant ESS 8 standards, through their existing instruments and procedures ARC Ltd contained in the REPAIR Project POM. ESS 9: FINANCIAL INTERMEDIARIES 9.1 Ensure, with ARC Ltd support, that MSME distribution channels receiving REPAIR funds Throughout Project Implementation. MEF comply with relevant ESS 9 standards, through their existing instruments and procedures ARC Ltd contained in the REPAIR Project POM. 6|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Regional Emergency Preparedness & Access to Inclusive Recovery Program (REPAIR) MPA Phase 1 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PLAN PREPARATION AND IMPLEMENTATION Prepare the draft SEP by Appraisal, and MEF complete adopt and disclose final ARC Ltd Adopt and implement, with ARC Ltd support, a Stakeholder Engagement Plan (SEP) for version no later than one month after the Project, consistent with ESS10, which shall include measures to, inter alia, provide the Project Effective Date. Thereafter stakeholders with timely, relevant, understandable and accessible information, and update it at least annually and consult with them in a culturally appropriate manner, which is free of manipulation, implement it throughout Project interference, coercion, discrimination and intimidation. implementation. 10.2 PROJECT GRIEVANCE MECHANISM Establish the MEF grievance mechanism MEF no later than one month after the ARC Ltd Establish, publicize, maintain, and operate an accessible grievance mechanism (GM), to Project’s Effective Date, and thereafter receive and facilitate resolution of concerns and grievances in relation to MEF’s activities maintain and operate the mechanism and responsibilities within the Project, promptly and effectively, in a transparent manner throughout Project implementation. that is culturally appropriate and readily accessible to all Project-affected parties, at no cost and without retribution, including concerns and grievances filed anonymously, in a manner consistent with ESS10. The grievance mechanism shall be equipped to receive, register, and facilitate the resolution of SEA/SH complaints, including through the referral of survivors to relevant gender-based violence service providers, all in a safe, confidential, and survivor-centered manner. Distribution channels that are already following ESF-compliant procedures shall ensure their SEP and GM procedures are followed for all activities funded through the REPAIR Fund, including grievance arrangements for their end-beneficiaries. Potential current or future Distribution channels with no SEP, GM or similar consultation New consultation or grievance redress and grievance redress procedures or instruments which are materially consistent with mechanisms needed by current or ESS10 requirements shall, with support from ARC TA, prepare and implement future distribution channels to be consultation and GM procedures as indicated in the climate crisis-oriented ESMF to be developed and implemented before developed by ARC Ltd with support from MEF. these channels are eligible to receive REPAIR Fund financing. CAPACITY SUPPORT 7|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Regional Emergency Preparedness & Access to Inclusive Recovery Program (REPAIR) MPA Phase 1 MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY CS1 Training to be provided to MEF REPAIR focal point and other staff and consultants With one year of Project Effective Date ARC Ltd involved in REPAIR Project implementation. Training may include the following topics World Bank E&S specialists (illustrative list). • ESF requirements and their application in the context of the REPAIR Project, including SEA/SH measures, stakeholder consultation and grievance redress procedures. • POM Preparation and implementation • ESMF Preparation, implementation and monitoring • Other relevant ES& topics and capacity building needs as identified during Project implementation 8|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Regional Emergency Preparedness & Access to Inclusive Recovery Program (REPAIR) MPA Phase 1 Annex 1: Eligibility Criteria for activities to be financed under the REPAIR Project 1. Activities financed under the REPAIR Project should meet the following cumulative criteria: • Hazards: all activities shall aim to respond to human or financial impacts from the following types of hazards: o Hydro-meteorological shocks: [drought, flood, storm surge / submersion, excess rainfall, tropical cyclone, wildfires, storms] o Geological shocks: [earthquake, tsunamis, landslides and volcano eruptions]. o Other shocks: The contingent credit and reserves can be used to cover the impact of the following shocks: human and zoonotic pandemic, food insecurity or insect invasions. • Timing of response. The funds should target immediate preparedness, emergency response and recovery activities, including the repair of damaged infrastructures to restore critical public services to the population. • Beneficiaries. The funds should provide financial and in kind, direct and indirect support to shock-affected households, farmers and MSMEs, or restore provision of critical public services. • Timeframe: to ensure alignment with the CERC, the activities must be implemented within 12 months maximum from the time MEF has received the funds. 2. Activities financed under REPAIR should follow the relief and recovery phases of post-disaster response. • Immediate preparedness: communication to populations ahead of event, preventive evacuation of population, asset protection work, setting up preventive food reserve, purchase of additional equipment for the civil protection ahead of shock, etc. • Relief: cash-transfer, emergency shelters, primary care, food support to affected population, civil protection interventions, health care facility, animal feed and water tankers to herders, Partial Credit Guarantee or emergency loans and saving support to MSMEs, etc. • Recovery: water pumping, removal of debris, temporary relocation of affected population, medium term medical aid, prevention of floodwater disease, funerals, disposal of deceased livestock, distribution of grain and inputs for farmers, replanting of crop/trees, reinstalment of key public services (electricity, roads, communication, waste, 3. Excluded Activities The following activities and uses for goods and equipment financed by REPAIR are prohibited. These include but are not limited to illegal activities, activities that do not directly or indirectly support final beneficiaries, activities that could cause significant environmental and social risks to populations or assets impacted. • Activities associated with human-related and technological hazards risks such as: man-made fires in urban environments, terrorism, war, migration, riots, political crisis, cyber-attacks, financial market crisis, etc • The construction of new infrastructures, inexistent prior to the disaster or outside the perimeters of the original infrastructure • Activities which do not provide any direct or indirect benefits to vulnerable households and MSMEs such as capitalizing State-Owned Enterprises (SEOs), payment of sovereign debt, etc • Activities that would lead to conversion or degradation of critical forest areas, critical natural habitats, and clearing of forests or forest ecosystems • Activities affecting protected areas (or buffer zones thereof), other than to rehabilitate areas damaged by previous natural disasters • Land reclamation (i.e., drainage of wetlands or filling of water bodies to create land) • Land clearance and levelling in areas that are not affected by debris resulting from the eligible crisis or emergency 9|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Regional Emergency Preparedness & Access to Inclusive Recovery Program (REPAIR) MPA Phase 1 • River training (i.e., realignment, contraction or deepening of an existing river channel, or excavation of a new river channel) • Activities that will result in the involuntary taking of land, relocation of households, loss of assets or access to assets that leads to loss of income sources or other means of livelihoods, and interference with households’ use of land and livelihoods • Construction of new roads, realignment of roads, or expansion of roads, or rehabilitation of roads that are currently located on communal lands but will be registered as government assets after rehabilitation • Use of goods and equipment on lands abandoned due to social tension / conflict, or the ownership of the land is disputed or cannot be ascertained • Use of goods and equipment to demolish or remove assets, unless the ownership of the assets can be ascertained, and the owners are consulted • Uses of goods and equipment involving forced labor, child labor, or other harmful or exploitative forms of labor • Uses of goods and equipment for activities that would affect indigenous peoples, unless due consultation and broad support has been documented and confirmed prior to the commencement of the activities • Uses of goods and equipment for military or paramilitary purposes • Uses of goods and equipment in response to conflict, in any area with active military or armed group operations • Activities related to returning refugees and internally displaced populations • Activities which, when being carried out, would affect, or involve the use of, water of rivers or of other bodies of water (or their tributaries) which flow through or are bordered by countries other than the Borrower/Recipient, in such a manner as to in any way adversely change the quality or quantity of water flowing to or bordering said countries. 4. The Government shall not use the funds financed under REPAIR for military or paramilitary or for any other purposes specifically excluded under the terms of financing. 10 | P a g e