REPUBLIC OF PARAGUAY PARAGUAY: ASUNCION RIVERFRONT URBAN RESILIENCE PROJECT (P175320) ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) Negotiated Version October 6, 2022 1|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Republic of Paraguay (the Borrower) will implement the Asuncion Riverfront Urban Resilience Project (the “Project�), with the involvement of the Ministry of Public Works and Communications (“MOPC� for its Spanish acronym), as set out in the Loan Agreement. The International Bank for Reconstruction and Development (the Bank) has agreed to provide financing for the Project, as set out in the referred agreement. 2. The Borrower 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 Bank. The ESCP is a part of the Loan 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 Borrower 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 Bank. Once adopted, said E&S instruments may be revised from time to time with prior written agreement by the Bank. 4. As agreed by the Bank and the Borrower, 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 Borrower through the MOPC will agree to update the ESCP to reflect these changes through an exchange of letters signed between the Bank and the Borrower’s Minister of the MOPC or the Director of Environmental and Social Management at the MOPC. The Borrower shall promptly disclose the updated ESCP. 2|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Asuncion Riverfront Urban Resilience Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY MONITORING AND REPORTING A REGULAR REPORTING Submit six-monthly reports to the Bank throughout Project implementation, Prepare and submit to the Bank regular monitoring reports on the environmental, social, commencing the first semester after the MOPC/PIU health and safety (ESHS) performance of the Project, including but not limited to the Effective Date. Submit each report to implementation of the ESCP, status of preparation and implementation of E&S the Bank no later than 45 days after the instruments required under the ESCP, stakeholder engagement activities, and end of each reporting period. functioning of the grievance mechanism(s). B INCIDENTS AND ACCIDENTS Notify the Bank no later than 48 hours after learning of the incident or MOPC/PIU Promptly notify the Bank of any incident or accident related to the Project which has, or accident. is likely to have, a significant adverse effect on the environment, the affected communities, the public or workers, including, inter alia, cases of sexual exploitation and Provide subsequent report to the Bank abuse (SEA), sexual harassment (SH), and accidents that result in death, serious or within a timeframe acceptable to the multiple injury. Provide sufficient detail regarding the scope, severity, and possible Bank. causes of the incident or accident, indicating immediate measures taken or that are planned to be taken to address it, and any information provided by any contractor and/or supervising firm, as appropriate. Subsequently, at the Bank’s request, prepare a report on the incident or accident and propose any measures to address it and prevent its recurrence. The guideline for Borrowers to prepare “Responses to environmental and social incidents and of health and occupational security� of the World Bank shall be included as an annex to the Operating Manual (OM) and the Environmental and Social Management Framework (ESMF). C CONTRACTORS’ MONTHLY REPORTS Submit the contractors and supervising firms monthly reports to the Bank upon MOPC/PIU Require contractors and supervising firms to provide monthly monitoring reports on request during Project implementation. ESHS performance in accordance with the metrics specified in the respective bidding documents and contracts and submit such reports to the Bank. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 3|Page 9/13/2022 ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Asuncion Riverfront Urban Resilience Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 1.1 ORGANIZATIONAL STRUCTURE Assign or appoint 1 environmental and MOPC/PIU 1 social specialist for the PIU, in a Establish and maintain the MOPC with qualified staff and resources to support manner acceptable to the Bank, no later management of ESHS risks and impacts of the Project including: 2 environmental than 60 days after the Project Effective specialists, 1 biodiversity specialist, 1 social specialist, 20 social technicians with Date and thereafter maintain these knowledge on resettlement, gender, social development and other social related issues, positions throughout Project and 1 communications specialist to serve as a focal point for the management of the implementation. Grievance Redress Mechanisms. All the staff shall have skills and experience acceptable to the Bank. Assign or appoint 1 additional environmental specialist, 1 biodiversity specialist, 1 communications specialist and 20 social technicians with knowledge on resettlement, gender, social development and other social related issues, no later than 6 months after the Project Effective Date and thereafter maintain these positions as required by the project in a manner acceptable to the Bank. 1.2 ENVIRONMENTAL AND SOCIAL INSTRUMENTS 1. The consultation, adoption, and publication of the ESMF in a manner 1. Finalize, consult, publish, adopt, and implement an Environmental and Social acceptable to the Bank is an additional MOPC/PIU Management Framework (ESMF), that includes the Environmental and Social condition of effectiveness of the Loan Assessment developed for the Project, in a manner acceptable to the Bank. Agreement. The ESMF shall be implemented throughout Project 2. Develop, consult, publish, adopt, and implement an Environmental and Social Impact implementation. Assessment (ESIA) for the Project, and its corresponding Environmental and Social Management Plan (ESMP) for each of the specific infrastructure investments under parts 2. Prepare ESIA and ESMP and submit to 1, 2, and 3 of the Project, required according to the ESMF criteria and in compliance with the Bank for approval prior to starting local laws, accordingly, and in a manner acceptable to the Bank. the corresponding procurement processes. Once approved, implement the respective ESMP throughout Project implementation. 1.3 ENVIRONMENTAL LICENSE License for the Project shall be obtained no later than 90 days after the Project Effective Date. MOPC/PIU 4|Page 9/13/2022 ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Asuncion Riverfront Urban Resilience Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY Obtain the environmental license of the Ministry of Environment and Sustainable Development (MADES for its Spanish acronym) for the Project. EIAs and corresponding licenses for specific investments under the Project Prepare specific investments as required under the license and any Environmental shall be prepared and/or obtained, as Impact Assessment (EIA) required by MADES under said license. required, prior to the carrying out of the respective specific investment. Investment activities shall not start until the MADES provides the corresponding environmental license. 1.4 MANAGEMENT OF CONTRACTORS a) Include as part of the preparation of procurement documents a) Incorporate the relevant aspects of the ESCP, including, among others, the ESMF, and respective contracts. the ESMPs, and the Labor Management Procedures (LMP), into the ESHS specifications of the procurement documents and contracts with contractors and supervising firms. MOPC/PIU Thereafter ensure that the contractors and supervising firms comply and cause subcontractors to comply with the ESHS specifications of their respective contracts. b) Supervise contractors throughout Project implementation. b) Supervise contractors and ensure they comply with the environmental and social health and safety specification in their contracts. 1.5 TECHNICAL ASSISTANCE Ensure that the consultancies, studies (including feasibility studies, technical designs, if Throughout Project implementation. MOPC/PIU applicable), capacity building, training, and any other technical assistance activities under the Project are carried out in accordance with terms of reference acceptable to the Bank, 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 Elaborate and submit to the Bank for approval no later than 60 days after the Project Effective Date or before the first MOPC/PIU contract for a specific investment is signed, whichever comes first. Once the LMP are approved, it shall be implemented throughout Project implementation. 5|Page 9/13/2022 ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Asuncion Riverfront Urban Resilience Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY Prepare, adopt, and implement the Labor Management Procedures (LMP) for the Project, including, inter alia, provisions on working conditions, management of workers relationships, occupational health and safety (including personal protective equipment, and emergency preparedness and response), code of conduct for project workers and other labor requirements that will be incorporated in the occupational health and safety specifications of the procurement documents and contracts with contractors and supervisory firms. 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS Establish grievance mechanism no later than 60 days after the Project Effective MOPC/PIU Establish, maintain, and operate a grievance mechanism for Project workers, as Date, and thereafter maintain and described in the LMP and consistent with ESS2. operate it throughout Project implementation. ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3.1 RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT a) Incorporate actions to guarantee resource efficiency and pollution prevention a) Same timeframe as for the MOPC/PIU and management measures in the development of the ESMP. implementation of the action 1.2.2. b) Include in the semi-annual report information about procurement, usage, b) Same timeframe as for the storage and disposal of hazardous waste and materials, as well as on training activities in implementation of action A). support of the Project specific investments. ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 TRAFFIC AND ROAD SAFETY Adopt and implement measures and actions to assess and manage traffic and road Same timeframe as for the MOPC/PIU safety risks as required in the ESMP to be prepared under Project specific investments. implementation of action 1.2.2. 4.2 COMMUNITY HEALTH AND SAFETY Elaborate, adopt and implement measures and actions to assess and manage specific Same timeframe as for the MOPC/PIU risks and impacts to the community arising from Project activities (including, inter alia, implementation of action 1.2.2. food security, potential risks of forced and child labor in project activities, behavior of project workers, risks of labor influx, response to emergency situations), and include mitigation measures in the ESMPs to be prepared in accordance with the ESMF, in an acceptable manner for the Bank. 6|Page 9/13/2022 ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Asuncion Riverfront Urban Resilience Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT 5.1 RESETTLEMENT POLICY FRAMEWORK The finalization, consultation, adoption and disclosure of the RPF in a manner MOPC/PIU Prepare, consult, disclose, adopt, and implement a Resettlement Policy Framework (RPF) acceptable to the Bank is an additional for the Project, consistent with ESS5, in a manner acceptable to the Bank. condition of effectiveness of the Loan Agreement. The RPF shall be implemented throughout Project implementation. 5.2 RESETTLEMENT PLANS Prepare a preliminary draft RAP for phase 1 of the resettlement process and Prepare, consult, disclose, adopt, and implement resettlement action plan(s) (RAPs) submit for Bank approval no later than MOPC/PIU consistent with the RPF, in a manner acceptable for the Bank, and according to the 90 days after the Project Effective Date. Project implementation timeline. Prepare the advanced draft RAP for phase 1 no later than 30 days after the technical design for the works that require the preparation of the RAP for phase 1 are finalized. Subsequently, disclose, consult, finalize, and implement the RAP for phase 1, including ensuring that before taking possession of the land and related assets, full compensation has been provided and displaced people have been resettled and moving allowances have been provided. 7|Page 9/13/2022 ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Asuncion Riverfront Urban Resilience Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY The other required RAPs shall be prepared, consulted, and disclosed according to the requirements and deadlines established in the RPF. Once adopted, implement the subsequent RAPs, including ensuring that before taking possession of the land and related assets, full compensation has been provided and displaced people have been resettled and moving allowances have been provided. 5.3 PROCESS FRAMEWORK Prepare, consult, disclose, and adopt before the implementation of activities MOPC/PIU Prepare, consult, disclose, adopt, and implement a process framework consistent with under part 2.3 of the Project that ESS5, in case the Environmental and Social Impact Assessment (ESIA) for the investment require a Process Framework. The in Banco San Miguel and Bahia de Asunción determines that the activities under Part 2.3 Process Framework shall be submitted of the Project will cause access restrictions to natural resources. for Bank approval before the start of the works that will cause access restrictions to natural resources. It shall be implemented throughout Project implementation. ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES 6.1 BIODIVERSITY RISKS AND IMPACTS a) Same timeframe as for the implementation of the action 1.2.1. MOPC/PIU a) Incorporate analysis on the risks and impacts on biodiversity in the Environmental and Social Assessment (ESA) as part of Project’s ESMF. b) Same timeframe as for the implementation of action 1.2.2. b) Include mitigation measures to assess and address site-specific risks and impacts on biodiversity in the ESMPs for Project specific investments, as needed. ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES This standard is not relevant. ESS 8: CULTURAL HERITAGE 8.1 CHANCE FINDS MOPC/PIU 8|Page 9/13/2022 ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Asuncion Riverfront Urban Resilience Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY Apply the procedure for chance finds specified in the ESMF developed for the Project Same timeframe as for the and incorporate measures in the selection and in the ESMP prepared for the Project implementation of activities 1.2.1 and investments. 1.2.2. 8.2 NATIONAL SECRETARIAT OF CULTURE Throughout Project implementation. MOPC/PIU Inform and coordinate with the National Secretariat of Culture the next steps in case there are chance findings. ESS 9: FINANCIAL INTERMEDIARIES This standard is not relevant. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PLAN PREPARATION AND IMPLEMENTATION Consultation, finalization, adoption, and MOPC/PIU Finalize, consult, publish, adopt, and implement a Stakeholder Engagement Plan (SEP) disclosure of the SEP in a manner for the Project, which shall include measures to, inter alia, provide stakeholders with acceptable to the Bank is an additional timely, relevant, understandable, and accessible information, and consult with them in a condition of effectiveness of the Loan culturally appropriate manner, which is free of manipulation, interference, coercion, Agreement. discrimination and intimidation. The SEP shall be implemented throughout Project implementation. 10.2 PROJECT GRIEVANCE MECHANISM MOPC/PIU a) Establish, maintain, and operate a grievance mechanism for the Project, as a) Establish the grievance described in the SEP. The grievance mechanism shall be equipped to receive, register, and mechanism no later than 60 days after facilitate the resolution of SEA/SH complaints, including through the referral of survivors the Project the Effective Date, and to relevant gender-based violence service providers, all in a safe, confidential, and thereafter maintain and operate the survivor-centered manner. mechanism throughout Project implementation. b) Include an assessment of the workings of the grievance mechanism in the bi- annual reporting mentioned in action A) above, in which there should be described as a b) Same timeline as action A) minimum, the number and type of complaints received, the average time for resolution, above. and other data to be agreed with the Bank. CAPACITY SUPPORT CS1 Training may be required for Direccion de Gestion Social Ambiental (DGSA) Team, PIU Throughout Project implementation. MOPC/PIU staff, and participants of the Interinstitutional Roundtable on: 9|Page 9/13/2022 ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Asuncion Riverfront Urban Resilience Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY • Legal framework, ESA and mitigation measures established in the ESMF and other documents (such as LMP, RPF, RAPs) • stakeholder mapping and engagement • Management of claims and complaints • Gender and Intercultural approach • Gender violence issues, monitoring and prevention • Urban and mobility planning • Use of GIS tools for land use, cadaster, social management • Disaster risk management • Support for the socio-economic development of communities • Urban project management • Capture of capital gains (and application of mechanisms in one case) • Management and supervision of the execution of works of the project • Monitoring and processes for the eradication of child labor and SEA/SH Technical workers of the project will receive training on: • Occupational health and safety, including emergency prevention and preparedness, emergency response arrangements, and license for the use of project vehicles. • Gender and intercultural approach. • Gender violence issues, monitoring and prevention. • Monitoring and processes for the eradication of child labor. • Stakeholder engagement and communication. • Management of claims/complaints. INSTITUTIONAL ARRANGEMENTS IA1 The MOPC shall sign specific agreements (Collaboration Agreements) with the following With the Municipality of Asuncion and MOPC/PIU areas to ensure collaboration in the management of environmental and social risks the Ministry of Urbanism and Habitat, during the implementation of the Project: within the timeframe established in the • Municipality of Asunción Loan Agreement. With the remaining • Ministry of Urbanism, Housing and Habitat entities, no later than 6 months after • Presidency the Project Effective Date. • Technical Secretariat of Planning • Ministry of Labor, Employment and Social Security (MTEySS for its Spanish acronym) 10 | P a g e 9 / 1 3 / 2 0 2 2 ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Asuncion Riverfront Urban Resilience Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY • Ministry of Information and Communication Technologies (MITIC for its Spanish acronym) • Ministry of Agriculture and Livestock (MAG, for its Spanish acronym) • National Electricity Administration (ANDE for its Spanish acronym) • Paraguayan Sanitary Services Company (ESSAP for its Spanish acronym) • Ministry of Women • Ministry of Childhood • Ministry of Social Development 11 | P a g e 9 / 1 3 / 2 0 2 2