STATE OF PIAUÍ Secretariat of Finance - State of Piauí PRÓ-GESTÃO PIAUÍ: PIAUI EFFICIENCY AND EFFECTIVENESS OF PUBLIC SECTOR MODERNIZATION PROJECT P178663 ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) NEGOTIATED August 24, 2022 1|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The State of Piauí (the Borrower) will implement the Pró-Gestão Piaui: Piaui Efficiency and Effectiveness of Public Sector Modernization Project (the Project), with the involvement of the Secretariat of Finance (SEFAZ), as manager and coordinator and the State Secretariat for Administration and Pensions (SEADPREV), the State Secretariat of Planning (SEPLAN), the State Secretariat for Education (SEDUC), the State Secretariat for Health (SESAPI), the State Secretariat for Planning (SEPLAN), the State Secretariat for Social Assistance (SASC) and the PIAUÍ Pension Foundation (PiauiPrev) (the Implementing Secretariats and PIAUIPREV), 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, through SEFAZ, 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, through SEFAZ, shall carry out or cause the Implementing Secretariats and PIAUIPREV to carry 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 and the Bank agree to update the ESCP to reflect these changes through an exchange of letters signed between the World Bank and the Secretary in charge of SEFAZ. The SEFAZ shall promptly disclose the updated ESCP. 2|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – PIAUI EFFICIENCY AND EFFECTIVENESS OF PUBLIC SECTOR MODERNIZATION PROJECT MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE AUTHORITY/ENTITY MONITORING AND REPORTING REGULAR REPORTS A SEFAZ Prepare and submit to the Bank regular monitoring reports on the Submit semi-annual reports to the Bank environmental, social, health and safety performance of the Project, throughout Project implementation, including stakeholder engagement activities, and functioning of the commencing after the Effective Date. grievance mechanism. Submit each report to the Bank no later than 30 days after the end of each reporting period. INCIDENTS AND ACCIDENTS B Notify the Bank no later than 48 hours SEFAZ and relevant Implementing Promptly notify the Bank of any incident or accident related to the Project after learning of the incident or accident. Secretariats and PIAUIPREV that has, or is likely to have, a significant adverse effect on the environment, the affected communities, the public or workers, including, Provide subsequent report to the Bank inter alia, cases of sexual exploitation and abuse (SEA), sexual harassment within a timeframe acceptable to the Bank. (SH) and accidents that result in death, serious or multiple injuries. 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 company, as appropriate. Subsequently, at Bank’s request, prepare a report on the incident or accident and propose any measures to address it and prevent its recurrence. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS ORGANIZATIONAL STRUCTURE 1.1 The organizational structure shall be SEFAZ Establish and maintain a Project Management Unit with qualified staff established as a condition of Effectiveness, and appropriate resources for the management of E&S risks and impacts and maintained throughout Project of the Project implementation, and key PMU roles shall include attention to E&S commitments in their respective terms of reference. TECHNICAL ASSISTANCE 1.2 The terms of reference shall be reviewed SEFAZ, SEADPREV, SEPLAN, SESAPI, Ensure that the consultancies, studies, capacity building, training and any and approved by the Bank prior to their SEDUC, SASC and PIAUIPREV other technical assistance activities under the Project are carried out in finalization, and technical assistance accordance with terms of reference reviewed and found acceptable to activities shall be thereafter carried out in the Bank, that incorporate the relevant requirements of the accordance with those terms of reference Environmental and Social Standards. throughout Project implementation. 3|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – PIAUI EFFICIENCY AND EFFECTIVENESS OF PUBLIC SECTOR MODERNIZATION PROJECT MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE AUTHORITY/ENTITY Thereafter ensure that the outputs of such activities comply with the terms of reference. EXPEDITIOUS ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT 1.3 Final EESIA disclosed no later than 30 days SEFAZ, SEADPREV, SEPLAN, SESAPI, (EESIA) after the Effective Date, and any relevant SEDUC, SASC and PIAUIPREV Consult, finalize, and disclose the EESIA, and thereafter implement any measures implemented as set out in the relevant measures identified therein. EESIA, as applicable. ESS 2: LABOR AND WORKING CONDITIONS WORK MANAGEMENT PROCEDURES 2.1 SEFAZ, SEADPREV, SEPLAN, SESAPI, Incorporate the relevant aspects of ESS in the contracts for consultants Throughout Project implementation. SEDUC, SASC and PIAUIPREV directly hired or engaged through third parties to perform works related to core functions of the Project, including, inter alia: • The provision to all Project workers of clear and understandable information and documentation on the terms and conditions of employment; • The respect of the principles of equal opportunity, fair treatment, no discrimination in all decisions related with recruitment, hiring, compensation and access to training of Project workers; • The respect of the worker’s rights to join workers’ organizations; • The principle of no tolerance with regards to harassment, SEA/SH, intimidation and/or exploitation in the workplace; • The principle of minimum age of employment set according to national legislation and the requirements of ESS 2; • The principle to prevent all forms of forced labor and child labor. 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS Grievance mechanism operational prior to SEFAZ engaging Project workers and maintained Establish and operate a grievance mechanism where Project workers throughout Project implementation. (direct and contracted works) can raise workplace concerns (including SEA/SH concerns and issues) without fear of retaliation and in accordance to the requirements of ESS 2. 4|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – PIAUI EFFICIENCY AND EFFECTIVENESS OF PUBLIC SECTOR MODERNIZATION PROJECT MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE AUTHORITY/ENTITY 2.3 OCCUPATIONAL HEALTH AND SAFETY (OHS) MEASURES Throughout Project implementation. SEFAZ, SEADPREV, SEPLAN, SESAPI, SEDUC, SASC and PIAUIPREV Incorporate and follow international standards of occupational health and safety (OHS) in the workplace of all public servants and consultants directly hired or engaged through third parties to perform works related to of the Project. ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3. RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND SEFAZ, SEADPREV, SEPLAN, SESAPI, MANAGEMENT Throughout Project implementation. SEDUC, SASC and PIAUIPREV Implement good practices of recycle and recovery of E-Waste according to the requirements of the national legislation and ESS 3, as appropriate. ESS 4: COMMUNITY HEALTH AND SAFETY This standard is not relevant for the Project. ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT This standard is not relevant for the Project. ESS 6: BIODIVERSITY AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES This standard is not relevant for the Project. ESS 7: INDIGENOUS POPULATIONS AND TRADITIONAL COMMUNITIES This standard is not relevant for the Project. ESS 8: CULTURAL HERITAGE 8.1 CULTURAL HERITAGE RISKS AND IMPACTS Throughout Project implementation. SEFAZ Ensure that the technical assistance activities to be carried out under action 1.2 are consistent with the ESS8, including by reflecting relevant elements of this standard in the relevant terms or reference, and any outputs prepared pursuant to those terms of reference. 5|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – PIAUI EFFICIENCY AND EFFECTIVENESS OF PUBLIC SECTOR MODERNIZATION PROJECT MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE AUTHORITY/ENTITY ESS9: FINANCIAL INTERMEDIARIES This standard is not relevant for the Project. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PROCEDURES Throughout Project implementation. SEFAZ Carry out stakeholder engagement activities, consistent with ESS10, which shall include measures to, inter alia: (a) Identifying the relevant stakeholders (affected parties and other interested parties) for each one of the Technical Assistance activities supported by the Project (and their potential environmental and social risks and impacts as well as downstream effects); (b) Provide stakeholders with timely, relevant, understandable and accessible information about the Technical Assistance activities they might be interested in or be affected by; and, (c) Consult – as necessary and in a proportionate way to the risks, impacts and downstream effects of the Technical Assistance activities – all potentially affected parties, in a culturally appropriate manner, which is free of manipulation, interference, coercion, discrimination and intimidation. 10.2 PROJECT GRIEVANCE MECHANISM SEFAZ Rely on the State General Ombudsman Office as an accessible grievance Within 30 days after the Effective Date and mechanism, to receive and facilitate resolution of concerns and maintained throughout Project grievances in relation to the Project in a manner consistent with ESS10. implementation. Ensure that the GM can report on Project-related grievances in the Projects’ semi-annual Progress Reports. CAPACITY SUPPORT 6|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – PIAUI EFFICIENCY AND EFFECTIVENESS OF PUBLIC SECTOR MODERNIZATION PROJECT MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE AUTHORITY/ENTITY CS1 Training in the Bank’s Environmental and Social Standards for civil No later than 30 days after the Effective SEFAZ servants and consultants of the PMU working on the Project. This training Date shall be carried out in collaboration with the Bank and in agreement with the Project Management Unit (PMU). 7|Page