The World Bank (P181064) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 11/06/2023 | Report No: ESRSC03887 Feb 07, 2025 Page 1 of 8 The World Bank (P181064) I. BASIC INFORMATION A. Basic Operation Data Operation ID Product Operation Acronym Approval Fiscal Year Operation Name Country/Region Code Beneficiary country/countries Region Practice Area (Lead) (borrower, recipient) Belize Belize LATIN AMERICA AND Environment, Natural CARIBBEAN Resources & the Blue Economy Borrower(s) Implementing Agency(ies) Estimated Appraisal Date Estimated Board Date Belize Belize Water Services, Ministry of 15-Oct-2024 31-Jan-2025 Finance, Economic Development and Investment Public Disclosure Estimated Concept Total Project Cost Review Date 24-Oct-2023 32,232,810.00 Proposed Development Objective The objectives of the Project are to improve Belize’s management capacity for sustainable coastal and blue economy development, increase safe water supply and reduce land-based pollution discharges at targeted urban areas, and in case of an Eligible Crisis or Emergency, to respond promptly and effectively to it. B. Is the operation being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project Activities This proposed project will support the government of Belize to improve its policy and technical capacity of managing sustainable development of its coastal areas and blue economy, finance climate-resilient green and grey infrastructure that are critical to the livelihood of its population and the sustainability of its blue economy, and provide immediate and effective response to an eligible crisis or emergency. It will support the following four components: Component 1: Policy Feb 07, 2025 Page 2 of 8 The World Bank (P181064) Development and Capacity Building. This component aims to improve Belize's policy framework and technical capacity for the sustainable development of Belize’s coastal areas and blue economy. It will support four subcomponents: (a) policy development, (b) capacity building, (c) carbon market readiness, and (d) blue economy investment program. Component 2: Water, Sanitation and Waste Management in Targeted Urban Areas. This component will support (a) the upgrade of Belize City Wastewater Treatment Plant; (b) the expansion of the water network in South San Pedro; and (c) the development of a waste management pilot in San Pedro. Component 3: Project Management. This component will support project management, including monitoring and evaluation (M&E). It will finance project implementation costs associated with the project implementation units (PIU) in key agencies involved in project execution. Component 4: Contingent Emergency Response Component. This component will allow for rapid reallocations of uncommitted project funds in the event of an eligible emergency as defined in OP 8.00 to finance eligible expenses associated with the response. D. Environmental and Social Overview D.1 Overview of Environmental and Social Project Settings The Project will be implemented in Belize, an upper middle-income country with a population of 405,272 in 2022. The scope of infrastructure investments will cover Belize City, San Pedro, and Placencia, while the policy and capacity building interventions will be national. Belize is highly vulnerable to external economic shocks and adverse impacts of climate change that cause tremendous damage to key sectors including tourism. Infrastructure investments in San Pedro and Placencia have not kept up with the demand which has contributed to wastewater leakage into coastal areas; coastal erosion; sargassum blooms; and increased pressures on public water supply, sanitation, and solid waste management services. In Belize City, the Belize Water Services reports that the wastewater treatment plant does not Public Disclosure meet the required effluent discharge standards leading to pollution of the Caribbean Sea. There is also a lack of adequate policy measures and investment financing to systematically address the above concerns. The Project area of influence reflects the findings of the 2022 Census which indicates that Belize maintains a high poverty rate of 35.7 percent. Women are more likely to be self-employed and poor, indicating the structural difference in employment and poverty outcomes. Rural communities live mainly on subsistence agriculture, fishing, and foreign remittances. Other disadvantaged groups that could face discrimination and marginalization are the LGBTQ+ community, persons with disabilities, the youth, etc. According to the Ministry of Indigenous Peoples (IP) Affairs of Belize, the country's Indigenous peoples comprise approximately 18% of the country's population. Overall, the Project interventions are expected to reduce land and marine pollution, promote sustainable management of coastal zones, and improve the health and wellbeing of the population. D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts The Ministry of Economic Development (MED) is the lead implementing agency for preparing and implementing the proposed Project. The MED plays an active role in coordinating national stakeholders and development partners and plans to use its Central Executing Unit (CEU) as the Project Implementation Unit (PIU) for this Project. The CEU has experience in managing projects with different development partners including on environmental and social (E&S) aspects. The Belize Water Services (BWS) - a government-owned company - will lead the execution of water and sanitation activities under Component 2, including E&S risk management. The CEU will ensure overall Project coordination with the BWS and with other relevant authorities such as the Belize Waste Management Authority and San Pedro town government. The Government of Belize has implemented projects under the World Bank safeguards policies and is gaining experience with projects under the Environmental and Social Framework (ESF). The CEU and BWS each have one E&S specialist who have experience with E&S risk management but this will be their first time implementing a Feb 07, 2025 Page 3 of 8 The World Bank (P181064) project under the ESF. During project preparation, the WB will assess the experience and capacity of relevant institutions in implementing E&S risk management measures under the ESF and recommend capacity development measures. The findings, recommendations, and actions will be documented in the appraisal ESRS and in the Environmental and Social Commitment Plan (ESCP). II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Substantial A.1 Environmental Risk Rating Substantial The environmental risk rating is Substantial at the Concept Stage. This rating is based on the proposed locations, type of investments, potential sensitivity of project intervention, nature and magnitude of potential risks and impacts, and client capacity. The Project is expected to improve the quality of wastewater effluent, promote recycling and improve access to safe and reliable potable water. The key potential environmental risks and impacts are primarily associated with Component 2 activities and include (i) soil, water, and air pollution resulting from the desludging of facultative ponds and septage disposal; (ii) leakages and emissions of greenhouse gasses (GHGs) from the wastewater treatment plant upgrades; (iii) adverse impacts to water quantity and quality of groundwater systems in water supply systems; (iv) generation and disposal of hazardous waste; and (v) construction stage risks such as occupational health and safety (OHS), cultural heritage risks, and waste management. These risks are likely to be temporary and can be managed through proper design and implementation of appropriate risk mitigation measures. The full range of key risks will be further assessed during Project preparation once activities are more defined, and the appropriate Public Disclosure measures will be identified and documented in the ESCP and E&S assessments and management plans to prevent or mitigate risks. Moderate A.2 Social Risk Rating The project's social risk rating is Moderate. The main social risks of the project activities are i) the social exclusion of the disadvantaged and vulnerable groups (fishers, female-headed households, low-income households, the youth, the LGBTI+ community, persons with disabilities, etc. ) from the consultation and decision-making processes , ii) transparency of stakeholder participation and public information disclosure, iii) inadequately addressing and promoting environmental and social capacity building and institutional strengthening, iv) potential labor influx with moderate risks and low SEASH risks, v) potential for moderate economic and physical displacement caused by civil work, vi) low-moderate risk for child labor, along with labor safety concerns, vii) Weak capacity of contractors to manage environmental and social risks and impacts. Component 2 will not impact indigenous groups (IPs) as defined under ESS7. However, Component 1 could require IPs' participation during consultations to develop policies and plans for the Project. At this stage, there are no identified risks of exclusion to the benefits of the Project, for example, as those under Component 2 but this will further be assessed and validated during Project preparation. During Project preparation, appropriate environmental and social measures will be identified and documented in the ESCP to prevent or mitigate identified risks and impacts. Section C of this C-ESRS also summarizes the proposed Environmental and Social Risk Management Activities the Project will implement to avoid or mitigate identified E&S risks and impacts. The ESRC will be reviewed regularly throughout the project life cycle to ensure that it continues to accurately reflect the level of risk that the project presents. Feb 07, 2025 Page 4 of 8 The World Bank (P181064) B. Relevance of Standards and Policies at Concept Stage B.1 Relevance of Environmental and Social Standards ESS1 - Assessment and Management of Environmental and Social Risks and Impacts Relevant The project's key potential E&S risks and impacts are highlighted in Section A. The appropriate methods and tools for the E&S assessments (as described under ESS1 Annex 1) and their timing will be determined during project preparation. These are likely to be a combination of ESIA, ESMP, and E&S Codes of Practice. During project preparation, the Borrower will develop draft terms of reference (ToR) for these assessments which will consider the requirements of the ESF and the World Bank EHS Guidelines. The TOR will be reviewed and cleared by the WB prior to appraisal and thereafter disclosed for stakeholder consultations and feedback. The assessments will inform project design and no activities will commence prior to having the appropriate measures in place. Any technical assistance activities under the Project will adhere to the requirements set out in paragraphs 14–18 of ESS1, consistent with ESSs 1-10. The Borrower will prepare and disclose a draft ESCP before appraisal. ESS10 - Stakeholder Engagement and Information Disclosure Relevant The main project stakeholders include government ministries and agencies; civil society organizations and the private sector; and coastal communities, including vulnerable groups (fishers, female-headed households, low-income households, the youth, the LGBTI+ community, persons with disabilities, etc.). Stakeholders will be further defined during project preparation. Before appraisal, the project will prepare, consult, and disclose a draft SEP proportionate to the nature and scale of the project and its associated risks and impacts consistent with ESS10. The SEP will have a Public Disclosure Grievance Mechanism to ensure that all project-level complaints are received and resolved in a timely manner and will have channels to uptake and manage SEASH complaints in a confidential manner. The SEP will also address the requirements of meaningful consultations in contexts of IPs, consistent with ESS7. If necessary, the SEP will be updated within the timeframe of the ESCP. ESS2 - Labor and Working Conditions Relevant The Project will likely include direct and contracted workers and no community workers. Primary supply workers will be determined during preparation. Government employees involved in project implementation will remain subject to the terms and conditions of their contracts unless there is an effective legal transfer of their employment to the Project - only paragraphs 17 to 20 (Protecting the Work Force) and 24 to 30 (OHS) will apply to them. To manage risks and impacts, the Project will prepare Labor Management Procedures (LMP), whose timeframe will be indicated in the ESCP. The LMP will have a dedicated Grievance Redress Mechanism (GRM) with channels to update SEA/SH-related complaints. The LMP will include a code of conduct for project workers, including provisions on non-discrimination and the prevention of SEA/SH. Because of the country context, risk of child labor is moderate, for which the client will apply measures consistent with para 17-19 of ESS2. ESS3 - Resource Efficiency and Pollution Prevention and Management Relevant Works at the wastewater treatment plant are associated with potential sources of soil and water pollution, including from desludging, disposal of dried sludge, and construction and operation of anaerobic ponds. The expansion of the water supply system for North Placensia Peninsula may lead to withdrawal of significant quantities of groundwater. Feb 07, 2025 Page 5 of 8 The World Bank (P181064) The installation of an anaerobic pond will lead to GHGs, which, if not properly managed, will result in increased emissions. During project preparation, the above issues will be further assessed, including any cumulative impacts, and the resulting TOR and E&S assessments will guide the formulation of detailed mitigation measures to address the impacts and in line with the WB EHS Guidelines and applicable national standards. Civil work will consider climate- resilient measures as guided by technically and financially feasible solutions. ESS4 - Community Health and Safety Relevant Civil works may generate noise, dust, odors, and pollution that could potentially impact community health. Other associated community health and safety risks may be related to groundwater quality, traffic disturbance, labor influx, and risks associated with waste separation and recycling activities. During operation of the solid waste and wastewater facilities, community risks include noise, odor, and vectors. The E&S assessments will assess risks to community health and safety and detail the corresponding mitigation measures. The assessments will also ensure that management systems are in place to ensure the safety of services, especially water supply, sanitation, and solid waste. Designs will also address universal access to be implemented where technically and financially feasible. ESS5 - Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant Civil works including wastewater treatment, water network expansion, sanitation, and waste management could imply moderate resettlement impacts (economic and physical displacement). During Project preparation, the Bank will further assess the potential for such an impact. The ESCP, where relevant, will require the Borrower to formulate, consult, disclose, and implement, before the start of works, Resettlement Action Plans proportionate to the nature Public Disclosure and scope of the impact. Where resettlement impacts are identified, no construction activities will be undertaken before compensation is given to all displaced persons in accordance with the RAPs. The ToRs that will be developed during Project preparation to guide the formulation of the ESMPs will contain in its annex a guidance note and suggested table of contents for the formulation of RAPs, consistent with ESS5 and its Guidance note for borrowers. ESS6 - Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources ESS6 is Relevant because Belize City, San Pedro and Placensia are located in Key Biodiversity Areas. However, Project interventions are expected to positively impact biodiversity by promoting the overall health of coastal and marine ecosystems and strengthening policies in key blue economic sectors. Infrastructure works will mostly be in urban and peri-urban areas where significant impacts to biodiversity and habitats or living natural resources are not expected. The relevance of ESS6 will be further assessed and confirmed during project preparation and appropriate mitigation measures will be documented in the TORs and E&S assessments and plans. ESS7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Relevant Local Communities Activities of Component 2 will not impact indigenous communities (IPs). However, the Standard is relevant because activities under Component 1 could have national scope, thus including IPs and requiring consulting them. A standalone Indigenous Plan will not be necessary; instead, the SEP will address the requirements of meaningful consultation in the context of IPs. The need for Free Prior and Informed Consent is not foreseen, as no Project Feb 07, 2025 Page 6 of 8 The World Bank (P181064) activities will negatively impact IPs in terms of adverse impacts on IPs’ land and natural resources, causing relocation from IPs’ land and natural resources, and/ or on IPs’ cultural heritage. ESS8 - Cultural Heritage Relevant At this stage of preparation, risks and impacts related to tangible and intangible cultural heritage have not been identified. However, the ToR for the E&S assessments will include requirements to assess possible impacts to cultural heritage. Since activities in Component 2 will involve excavations, chance find procedures will be included in relevant E&S mitigation measures and procurement documents considering the national legislation and the requirements under ESS8. ESS9 - Financial Intermediaries Not Currently Relevant The standard is not relevant to the Project. B.2 Legal Operational Policies that Apply OP 7.50 Operations on International Waterways Yes OP 7.60 Operations in Disputed Areas Yes B.3 Other Salient Features Public Disclosure Use of Borrower Framework No None Use of Common Approach No None C. Overview of Required Environmental and Social Risk Management Activities C.1 What Borrower environmental and social analyses, instruments, plans and/or frameworks are planned or required by Appraisal? Prior to appraisal, with the support of the WB Team, the Borrower will prepare: 1. A draft Stakeholder Engagement Plan(SEP) with is Grievance Mechanism. 2. Draft Terms of Reference for the environmental and social assessments under Component 2. 3. Draft Labor Management Procedures 4. A draft Environmental and Social Commitment Plan. During the preparation phase of the Project, the WB team will support the client in: 1. Further assessing the E&S risks of the Project, including those related to ESS5 and ESS7, and identifying corresponding mitigation measures. Feb 07, 2025 Page 7 of 8 The World Bank (P181064) 2. Self-assessment of the borrower capacity at the project level. 3. Assessing and adapting a GM adequate to the country’s context. During Project implementation, as part of implementing its ESCP within its timeframe, the Borrower will: 1. Formulate, consult, approve, and disclose ESIAs, site-specific ESMPs, in line with approved ToRs prepared during project preparation. 2. As needed, formulate, consult, approve, disclose, and implement Resettlement Actions Plan prior to the start of work that is causing resettlement impacts. 3. If needed, ensure that the SEP and its application apply the necessary requirements of ESS10 and ESS7 when consulting with IPs. If necessary, formulate, consult, disclose, and implement IPPs. III. CONTACT POINT World Bank Task Team Leader: Nicolas Benjamin Claude Desramaut Title: Senior Environmental Engineer Email: ndesramaut@worldbank.org Public Disclosure IV. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects V. APPROVAL Task Team Leader(s): Nicolas Benjamin Claude Desramaut ADM Environmental Specialist: Aradhna Mathur ADM Social Specialist: Norman Russle Howard Taylor Feb 07, 2025 Page 8 of 8