ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) FOR PALESTINIAN EMERGENCY FINANCING FACILITY (P504704) The Palestine Liberation Organization (for the benefit of The Palestinian Authority) Palestinian Emergency Financing Facility (P504704), Including First Additional Financing and Second Additional Financing Appraisal version ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) August 2024 1|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) FOR PALESTINIAN EMERGENCY FINANCING FACILITY (P504704) ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Palestinian Liberation Organization (for the benefit of the Palestinian Authority, (the Recipient) is implementing the Palestinian Emergency Financing Facility Project - P504704 (the Project), with the involvement of the Directorate General of International Relations and Projects (DGIRP) of the Ministry of Finance (MoF), as set out in the Trust Fund for Gaza and the West Bank (TFGWB) Grant Agreement and the Palestinian Umbrella for Resilience Support to the Economy Multi-Donor Trust Fund (PURSE) Grant Agreement. The International Development Association (the Association), acting as the administrator of TFGWB, has agreed to provide the original financing (P504704) (TF C4120), and the Association, acting as the administrator of PURSE, has agreed to provide first (TF C5270, TF C5693) and second additional financing for the Project, as set out in the referred agreements. This ESCP supersedes previous versions of the ESCP for the Project and the first additional financing and shall apply to the original, the first AF and the second AF for the Project referred to above. 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 Grant Agreements. Unless otherwise defined in this ESCP, capitalized terms used in this ESCP have the meanings ascribed to them in the referred agreements. 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 DGIRP and the Association agree to update the ESCP to reflect these changes through an exchange of letters signed between the Association and the Recipient’s DGIRP (Director General). The Recipient shall promptly disclose the updated ESCP. 2|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) FOR PALESTINIAN EMERGENCY FINANCING FACILITY (P504704) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY MONITORING AND REPORTING REGULAR REPORTING Annually, submit two reports as part of the overall Project progress reporting to Prepare and submit to the Association regular monitoring reports on the environmental, the Association throughout Project social, health and safety (ESHS) performance of the Project, including but not limited to implementation, commencing after the the implementation of the ESCP, status of preparation and implementation of E&S Project Effective Date. A MoF instruments required under the ESCP, stakeholder engagement activities, and functioning of the grievance mechanisms. Submit the first report by September 29, 2024, and the second report within 45 Progress reports shall cover the implementation of the E&S requirements under the days of the agreed upon Project Closing parent project, the first AF and the second AF. Date (December 31, 2025 ). INCIDENTS AND ACCIDENTS Promptly notify the Association of any incident or accident related to the Project which has, or 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 Notify the Association no later than 48 abuse (SEA), sexual harassment (SH), and accidents that result in death, serious or multiple hours after learning of the incident or MoF injury. accident. B Provide sufficient detail regarding the scope, severity, and possible causes of the incident Provide subsequent reports to the or accident, indicating immediate measures taken or that are planned to be taken to Association within a timeframe address it, and any information provided by any contractor and/or supervising firm, as acceptable to the Association appropriate and in a manner satisfactory to the Association. 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. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS ORGANIZATIONAL STRUCTURE Maintain existing PIU as set out in the Maintain the existing Project Implementation Unit (PIU), within the MOF’s DGIRP with Grant Agreements, including existing qualified staff and resources to support management of ESHS risks and impacts of the ES staff position serving as the ES focal 1.1 MoF Project, including the existing environmental and social (ES) staff position serving as the point, throughout Project ES focal point to support the management of ESHS risks and impacts. implementation. ENVIRONMENT AND SOCIAL ASSESSMENT The Project Operations Manual (POM) for the parent project and the first AF has The POM that was cleared on February identified eligibility criteria for financing, and this POM will also be used for the second AF. 21, 2024 shall be used for the second AF 1.2 MoF Only Eligible Employees – that include; (i) education employees in the West Bank as well, throughout Project (including staff that work in institutions providing basic, secondary, pre-primary, and implementation. vocational education as defined in the Education Sector Strategic Plan (ESSP). Employees 3|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) FOR PALESTINIAN EMERGENCY FINANCING FACILITY (P504704) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY include teachers and other staff including school principals, janitors, administrative assistants, counselors and other support staff), and (ii) Health sector employees who are staff working in hospitals, primary health care centers and other public health institutions located in the West Bank, including doctors, nurses, technical specialists, administrative staff, janitors, counselors, and other support staff- are eligible for payment/reimbursement. TECHNICAL ASSISTANCE (a) Ensure that the studies, for the second AF, are carried out in accordance with terms of reference acceptable to the Association, that are consistent with the ESSs. (a) Throughout Project Thereafter, ensure that the outputs of such activities comply with the terms of implementation. 1.3 reference. (b) Incorporate relevant aspects of the ESCP, including labor management measures, in (b) Throughout Project MoF the E&S specifications of tender files submitted to potential firms. Thereafter, ensure implementation. that providers comply with the ESCP specifications of their respective contracts. ACTIVITIES SUBJECT TO RETROACTIVE FINANCING a. Adopt and disclose the social audit that was prepared for the parent project and the first AF and cleared by the Association. a. The social audit was adopted and disclosed on August 28, b. Implement corrective actions of the social audit that was prepared for the parent 2024. project and the first AF. These include: b. Implement identified corrective 1.4 i. Improve information dissemination on Project GM, including SEA/SH, MoF actions throughout Project through the MoF’s different portals. implementation. ii. Strengthen mechanisms for engaging and receiving feedback from beneficiaries. c. ESS 2: LABOR AND WORKING CONDITIONS LABOR MANAGEMENT MEASURES Adopt and implement the Labor Management Measures for the Project included in the Project Operations Manual (POM), including, inter alia, provisions on working conditions, Implement the measures throughout management of workers relationships, occupational health and safety (including personal Project implementation. 2.1 protective equipment, and emergency preparedness and response), code of conduct MoF (including relating to SEA and SH), forced labor, child labor, grievance arrangements for Project workers, and applicable requirements for contractors, subcontractors, and supervising firms. 4|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) FOR PALESTINIAN EMERGENCY FINANCING FACILITY (P504704) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY GRIEVANCE MECHANISM FOR PROJECT WORKERS Maintain the grievance mechanism for MoF 2.2 Maintain the parent project grievance mechanism for Project workers described in the project workers and operate it POM and consistent with ESS2. throughout Project implementation. ESS3: Resource Efficiency and Pollution Prevention This Standard is not relevant NA NA ESS 4: COMMUNITY HEALTH AND SAFETY Covered under Action 1.4 above. Covered under Action 1.4 above. ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT This Standard is not relevant NA NA ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES This Standard is not relevant NA NA ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES This Standard is not relevant NA NA ESS 8: CULTURAL HERITAGE This Standard is not relevant NA NA ESS 9: FINANCIAL INTERMEDIARIES This Standard is not relevant NA NA ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE STAKEHOLDER ENGAGEMENT PLAN PREPARATION AND IMPLEMENTATION The SEP was updated and disclosed on Update, disclose and implement the Stakeholder Engagement Plan (SEP) to also cover the 10.1 August 19, 2024, and shall be activities under the second AF, consistent with ESS10, which includes measures to, inter MoF implemented throughout Project alia, provide stakeholders with timely, relevant, understandable and accessible information, implementation. and consult with them in a culturally appropriate manner, which is free of manipulation, interference, coercion, discrimination and intimidation. PROJECT GRIEVANCE MECHANISM Publicize and maintain the existing 10.2 MoF has a functioning Complaints Unit for addressing complaints and this will be used for Complaints unit and operate it MoF the parent project, the first AF and the second AF. throughout Project implementation. 5|Page