Government of the Republic of Zambia Zambia Agribusiness and Trade Project-II (P179507) NEGOTIATED ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) May 10, 2023 1|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Government of the Republic of Zambia (the Recipient) will implement the Zambia Agribusiness and Trade Project-II (ZATP-II) (the Project), through the Ministry of Commerce, Trade, and Industry (MCTI), as set out in the Financing Agreement. The International Development Association [the Association], has agreed to provide the original financing for the Project, as set out in the referred agreement(s). 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(s). 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. 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 MCTI 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 MCTI. The Recipient through MCTI shall promptly disclose the updated ESCP. 2|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – ZAMBIA AGRIBUSINESS AND TRADE PROJECT II (P179507) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY MONITORING AND REPORTING A REGULAR REPORTING Prepare and submit to the Association regular monitoring reports on the environmental, The Ministry of Commerce social, health and safety (ESHS) performance of the Project: The reports will include, Submit bi-annual reports to the Trade and Industry (MCTI) inter alia: Association throughout Project Project Implementation Unit • Status of implementation of the Environmental and Social Management Plan implementation, commencing after the (PIU) (ESMP) Effective Date. Submit each report to • Status of implementation of the ESCP the Association no later than 15 days • Progress made during reporting period, disaggregated by ESS after the end of each reporting period. • Activities to be performed before next reporting period • Status of procurement and works completed • Summary of contractor’s ESMP (C-ESMP) monthly reports • Site observations on contractor’s performance on implementation of community, environmental, social, health and safety (ESHS) plans • Summary of stakeholder engagement activities (if any) and their outcome • Functioning of the grievance mechanism(s) • Summary of grievance log • Capacity building programs conducted B INCIDENTS AND ACCIDENTS Promptly notify the Association of any incident or accident related to the Project which Notify the Association no later than 48 The Ministry of Commerce has, or is likely to have, a significant adverse effect on the environment, the affected hours after learning of the incident or Trade and Industry (MCTI) communities, the public or workers, including, inter alia, cases of sexual exploitation and accident. Project Implementation Unit abuse (SEA), sexual harassment (SH), and accidents that result in death, serious or (PIU) multiple injury such as road traffic, construction, pedestrian accidents involving project Provide subsequent report to the staff, local community members, project workers, contractors etc. Association within a timeframe acceptable to the Association. Provide sufficient detail regarding the scope, severity, and possible 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 Association’s request, prepare a report on the incident or accident and propose any measures to address it and prevent its recurrence. 3|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – ZAMBIA AGRIBUSINESS AND TRADE PROJECT II (P179507) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY C CONTRACTORS’ MONTHLY REPORTS Submit the monthly reports to the The Ministry of Commerce Require contractors and supervising firms to provide monthly monitoring reports on Association upon request throughout Trade and Industry (MCTI) ESHS performance in accordance with the metrics specified in the respective bidding the Project implementation period Project Implementation Unit documents and contracts and submit such reports to the Association. starting from the Project effective date. (PIU) ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE Update and maintain a PIU as set out in The Ministry of Commerce Establish and maintain a Project Implementation Unit (PIU) with qualified staff and the ZATP-II Financing Agreement. Hire Trade and Industry (MCTI) resources to support management of ESHS risks and impacts of the project including a or appoint an Environmental Specialist Project Implementation Unit qualified Environmental Specialist and a Social Specialist. and a Social Specialist prior to Project (PIU) Effectiveness and thereafter maintain these positions throughout Project implementation. 1.2 ENVIRONMENTAL AND SOCIAL INSTRUMENTS 1.Adopt the ESMF at Project The Ministry of Commerce 1. Adopt and implement an Environmental and Social Management Framework (ESMF) Effectiveness, and thereafter Trade and Industry (MCTI) for the Project, consistent with the relevant ESSs. implement the ESMF throughout Project Implementation Unit Project implementation. (PIU) 2. Adopt and implement the subproject site-specific Environmental and Social Management Plans (ESMP), as set out in the ESMF. The proposed subprojects described 2. Adopt the ESMP before launching the in the exclusion list set out in the ESMF shall be ineligible to receive financing under the bidding process for the respective Project. subproject or Project activity that requires the adoption of such ESMP. Once adopted, implement the respective ESMP throughout Project implementation. 1.3 MANAGEMENT OF CONTRACTORS During the preparation of procurement The Ministry of Commerce Incorporate the relevant aspects of the ESCP, including, inter alia, the relevant E&S documents and before the start of Trade and Industry (MCTI) instruments, the Labor Management Procedures (LMP), and Code of Conduct, into the activities by contractors Project Implementation Unit ESHS specifications of the procurement documents and contracts with Contractors and (PIU) Supervising Consultants. Thereafter ensure that the Contractors and Supervising Supervise contractors throughout Consultants comply and cause subcontractors to comply with the ESHS specifications of Project implementation. their respective contracts. The contracts shall include penalties for noncompliance of ESHS requirements and specifications. 4|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – ZAMBIA AGRIBUSINESS AND TRADE PROJECT II (P179507) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY The Project shall be carried out in accordance with the applicable requirement of ESS2, in a manner acceptable to the Association, including through, inter Alia, implementing adequate occupational health and safety measures (including emergency preparedness and response measures) setting out grievance arrangements for Project workers, incorporating labor procedures and requirements into the ESHS specifications of the procurement documents and contracts with contractors and subcontractors 1.4 TECHNICAL ASSISTANCE Throughout Project implementation. The Ministry of Commerce Ensure that the consultancies, studies (including feasibility studies, if applicable), Trade and Industry (MCTI) capacity building, training, and any other technical assistance activities under the Project Project Implementation Unit are carried out in accordance with terms of reference acceptable to the Association, that (PIU) are consistent with the ESSs. Thereafter ensure that the outputs of such activities comply with the terms of reference. 1.5 PERMITS, CONSENTS, AUTHORISATION Throughout Project Implementation The Ministry of Commerce Secure relevant permits, consent and authorizations applicable to subproject activities Trade and Industry (MCTI) from relevant national authorities and agencies. Comply or cause to comply, as Project Implementation Unit appropriately with conditions, established in these permits, consents and authorizations (PIU) throughout project implementation 1.6 Ensure that relevant aspects of ESS1 are included in any Terms of Reference, studies, TA Throughout Project implementation The Ministry of Commerce outputs, as relevant, in accordance with action 1.4 above Trade and Industry (MCTI) Project Implementation Unit (PIU) ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT PROCEDURES Adopt the LMP prior to Project Effective The Ministry of Commerce Adopt and implement the Labor Management Procedures (LMP) for the Project, as part Date, and thereafter, implement the Trade and Industry (MCTI) of the ESMF, including, inter alia, provisions on working conditions, management of LMP throughout Project Project Implementation Unit workers relationships, occupational health and safety (including personal protective implementation. (PIU) equipment, and emergency preparedness and response), code of conduct (including relating to SEA and SH), forced labor, child labor, grievance arrangements for Project workers, and applicable requirements for contractors, subcontractors, and supervising firms. 5|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – ZAMBIA AGRIBUSINESS AND TRADE PROJECT II (P179507) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS Establish grievance mechanism prior to The Ministry of Commerce Establish and operate a grievance mechanism for Project workers, as described in the engaging Project workers and Trade and Industry (MCTI) LMP and consistent with ESS2. thereafter maintain and operate it Project Implementation Unit throughout Project implementation. (PIU) 2.3 OCCUPATIONAL HEALTH AND SAFETY (OHS) MEASURES Throughout project implementation The Ministry of Commerce Assess, develop and implement occupational, health and safety risks and implement risk Trade and Industry (MCTI) control measures consistent with the requirement of ESS2, ESHGs or GIIP. Project Implementation Unit (PIU) ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3.1 WASTE MANAGEMENT PLANS Same timeframe as for the adoption The Ministry of Commerce Adopt and implement appropriate Waste Management Plans (WMP) as part of the and implementation of the ESMF and Trade and Industry (MCTI) ESMP, to manage hazardous and non-hazardous wastes, consistent with ESS3. ESMPs and thereafter implement the Project Implementation Unit WMP throughout Project (PIU) Implementation 3.2 RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT Same timeframe as for the adoption The Ministry of Commerce Incorporate resource efficiency and pollution prevention and management measures in and implementation of the ESMF and Trade and Industry (MCTI) the ESMF and all subproject or activity ESMPs to be prepared under action 1.2 above. ESMP and thereafter implement the Project Implementation Unit IPMP throughout Project (PIU) Implementation 3.4 INTERGRATED PEST MANAGEMENT PLAN Same timeframe as for the adoption The Ministry of Commerce Adopt and implement an Integrated Pesticide Management Plan as part of the ESMF to and implementation of the ESMF and Trade and Industry (MCTI) manage pesticides consistent with ESS, ESHGs and GIIP. ESMPs and thereafter implement the Project Implementation Unit IPMP throughout Project (PIU) Implementation ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 TRAFFIC AND ROAD SAFETY The same timeframe as for the The Ministry of Commerce Incorporate measures to manage traffic and road safety risks as required in the ESMF, adoption and implementation of the Trade and Industry (MCTI) ESMPs to be prepared under action 1.2 above. ESMF and ESMPs. Project Implementation Unit (PIU) 6|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – ZAMBIA AGRIBUSINESS AND TRADE PROJECT II (P179507) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 4.2 COMMUNITY HEALTH AND SAFETY The same timeframe as for the The Ministry of Commerce Assess and manage specific risks and impacts to the community arising from Project adoption and implementation of the Trade and Industry (MCTI) activities, including, inter alia, behavior of Project workers, risks of labor influx, response ESMF and ESMPs. Project Implementation Unit to emergency situations to include risk and impacts of COVID-19, fire and life safety of (PIU) any infrastructure, and include mitigation measures in the ESMPs to be prepared in accordance with the ESMF. 4.3 GBV, SEA AND SH RISKS The same timeframe as for the The Ministry of Commerce Adopt and implement a GBV/SEA/SH Action Plan as part of the ESMF, to assess and adoption and implementation of the Trade and Industry (MCTI) manage the risks of GBV/SEA and SH. ESMF and ESMPs. Project Implementation Unit (PIU) ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT This standard is relevant. The ESMF to be prepared by the project will contain procedures for screening land acquisition and resettlement impacts. These screening procedures shall be applied throughout project implementation. Also, sub-projects financed by the Financial Institution will exclude any activities that require land acquisition. ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES 6.1 Adopt and implement a Biodiversity Management Plan (BMP), if required, as part of an Adopt the BMP as an annex to the The Ministry of Commerce ESMP consistent with ESS6. ESMP, if required, and thereafter Trade and Industry (MCTI) implement the BMP throughout Project Project Implementation Unit implementation. (PIU) ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES Not currently relevant. ESS 8: CULTURAL HERITAGE [ 8.1 CHANCE FINDS Describe the chance find procedures in The Ministry of Commerce Describe and implement the chance finds procedures, as part of the ESMF of the Project. the ESMF and Implement the Trade and Industry (MCTI) Ensure that Contractors apply this procedure. procedures throughout Project Project Implementation Unit implementation. (PIU) ESS 9: FINANCIAL INTERMEDIARIES [This standard is only relevant for Projects involving Financial Intermediaries (FIs).] 7|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – ZAMBIA AGRIBUSINESS AND TRADE PROJECT II (P179507) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 9.1 ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM (ESMS) Establish and operationalize ESMS FIs Develop, maintain, and implement an ESMS to identify, assess, manage, and monitor the before carrying out screening of any environmental and social risks and impacts of FI subprojects that receive support from proposed FI subproject. Once the Project. The ESMS shall include, inter alia, the following elements: established, maintain and implement the ESMS throughout Project • There are no predefined subprojects at this time and the Bank support provided to implementation. the FI will be for a general purpose. Therefore, the requirements of ESS 9 will apply to the entire portfolio of the FI’s future subprojects from the dat e on which the Financing Agreement becomes effective. • An environmental and social policy endorsed by the FI senior management • Clearly defined procedures for the identification, assessment and management of the environmental and social risks and impacts of FI subprojects, in accordance with ESS9, including, inter alia, stakeholder engagement and disclosure requirements applicable to FI subprojects. • Exclusion list with the activities that are not eligible for financing, • An organizational capacity and competency for implementing the ESMS with clearly defined roles and responsibilities as set out in actions 9.3 and 9.4 below. • Monitoring and reporting of environmental and performance of FI subprojects and the effectiveness of the ESMS. • Incidents and accidents notification and subsequent reporting requirements as set out in action B above. • An external communications mechanism, including measures to respond to public enquiries and concerns in a timely manner. Disclose a summary of each of the elements of the ESMS through the relevant website. 9.2 EXCLUSIONS Screen FI subprojects before FIs Screen all proposed activities against the exclusion list set out in the Projects Operations determining whether they are eligible Manual. to receive support from the Project. 9.3 FI ORGANIZATIONAL CAPACITY Prior to commencement of relevant FIs Establish and maintain an organizational capacity and competency for implementing the Project-financed activities and ESMS with clearly defined roles and responsibilities. thereafter throughout Project implementation 9.4 SENIOR MANAGEMENT REPRESENTATIVE FIs Designate a senior management representative to have overall accountability for environmental and social performance of FI subprojects that receive support from the Project. 8|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – ZAMBIA AGRIBUSINESS AND TRADE PROJECT II (P179507) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY Prior to commencement of relevant Project-financed activities and thereafter throughout Project implementation ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PLAN PREPARATION AND IMPLEMENTATION Prepare and disclose a draft SEP prior to The Ministry of Commerce Adopt and implement a Stakeholder Engagement Plan (SEP) for the Project, consistent appraisal Trade and Industry (MCTI) with ESS10, which shall include measures to, inter alia, provide stakeholders with timely, Project Implementation Unit relevant, understandable and accessible information, and consult with them in a Adopt the SEP prior to Effectiveness (PIU) culturally appropriate manner, which is free of manipulation, interference, coercion, Date, and thereafter implement the SEP discrimination and intimidation. throughout Project implementation. 10.2 PROJECT GRIEVANCE MECHANISM Establish the grievance mechanism The Ministry of Commerce Establish, publicize, maintain, and operate an accessible grievance mechanism, to prior to Effectiveness Date, and Trade and Industry (MCTI) receive and facilitate resolution of concerns and grievances in relation to the Project, thereafter maintain and operate the Project Implementation Unit promptly and effectively, in a transparent manner that is culturally appropriate and mechanism throughout Project (PIU) readily accessible to all Project-affected parties, at no cost and without retribution, implementation. 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. 10.3 Ensure that the relevant aspects of ESS10 are included in any Terms of Reference, Throughout Project implementation The Ministry of Commerce studies, TA outputs, as relevant, in accordance with action 1.4 above. Trade and Industry (MCTI) Project Implementation Unit (PIU) CAPACITY SUPPORT CS 1 Conduct Environmental and Social Framework (ESF) training on the requirements of Within 30 days of Project Effective Date The Ministry of Commerce Environmental and Social Safeguards for the Environmental Specialist and Social and thereafter throughout Project Trade and Industry (MCTI) Safeguard Specialist in the PIU; implementation Project Implementation Unit • Environmental and Social Assessment (PIU) • Climate Change and Risk Assessment • Environmental and Social Risk Management in Construction • Environmental Audit 9|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – ZAMBIA AGRIBUSINESS AND TRADE PROJECT II (P179507) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY • Road Traffic and Safety Management • Incident Management • Disaster Preparedness and Emergency Response • Disciplinary and Grievance Handling/ Conflict Resolution CS2 Conduct Environmental and Social Framework (ESF) training requirements of the A full training plan will be prepared The Ministry of Commerce Environmental and Social Safeguard Standards for key project workers, Consultants, and prior to Effectiveness. Trainings will Trade and Industry (MCTI) implementation partners on the following specific training: Conducted at least on an annual basis Project Implementation Unit • Stakeholder mapping and engagement throughout project implementation. (PIU) • Specific aspects of environmental and social assessment • Environmental and Social Screening • Environmental and Social Risk Management • Introduction to World Bank Safeguard Framework Emergency preparedness and response • Community health and safety (Including road traffic and safety, mitigation measures related to other contagious diseases. • Vector/Pest Management • SEA/SH Risk Management • Occupational Health and Safety • Grievance redress mechanism • Gender Inclusion in programming • Identifying and addressing risks to vulnerable groups and individuals 10 | P a g e