The World Bank Chad Fragility and Resilience (P177163) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 03/13/2023 | Report No: ESRSC03406 Mar 13, 2023 Page 1 of 10 The World Bank Chad Fragility and Resilience (P177163) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Chad WESTERN AND CENTRAL P177163 AFRICA Project Name Chad Fragility and Resilience Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Urban, Resilience and Investment Project 4/3/2023 6/9/2023 Land Financing Borrower(s) Implementing Agency(ies) Ministry of Economy, Ministry of Economic Development Planning Prospective and and International International Partnerships Cooperation Public Disclosure Proposed Development Objective To improve access to basic services, restore livelihoods and strengthen local institutions in targeted areas of Chad. Financing (in USD Million) Amount Total Project Cost 140.00 B. Is the project 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 [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] The project anticipates financing activities under three main components. Component 1 would finance investments in communes (both rural and urban) and corresponding key towns/cities to facilitate local economic development, community resilience and inclusion. Components 2 and 3 would finance technical assistance and capacity building to plan and manage such investments transparently and to also support broader decentralization and peace building and reconstruction initiatives. Mar 13, 2023 Page 2 of 10 The World Bank Chad Fragility and Resilience (P177163) D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] Chad is the most vulnerable country in the world to the risks of climate change, with a dry tropical climate in the south and the arid conditions of the Sahara Desert in the north. In the targeted regions (North, East and Lake Chad region), climate change is leading to desertification; degradation of forests, soil, and natural habitats; loss of biodiversity; reductions in the level of water tables; and the silting of oases. Moreover, climate change is modifying agricultural seasons, disturbing the biological cycles of crops, reducing cereal crop production, and extending the time and space necessary for transhumance, which in turn contributes the degradation of protected areas and wetlands, and bush fires. The impacts of climate-related disasters such as droughts or floods are exacerbated because the country does not have adequate resources to combat them. The Project will target a yet-to-be determined number of departments in the North, East and Lake Chad region, based on a set of yet-to-be-determined criteria that accounts for fragility, vulnerability and the priorities of the Government of Chad. Within the selected departments, further criteria for the selection of cities/towns and communes will be developed. Selection of areas for intervention will be guided by four principles: (a) vulnerability, (b) feasibility, (c) equity and (d) economic viability. D. 2. Borrower’s Institutional Capacity At this stage of project preparation, the proposed PIU will be anchored in the Ministry of Economy, Developmental Planning and International Cooperation. The Ministry will be responsible for establishing: (i) an Inter-Ministerial Steering Committee (ISC) headed by the Ministry of Economy and including the various ministries of the key sectors that the project is looking at (potentially sectors such as Territorial Development, Land Management, National Public Disclosure Reconciliation, Agriculture, Livestock). Local Steering Committee (LCS) will also be established in the target areas. Once confirmed, the capacity of the PIU will be assessed during project preparation and the possibility of using an existing PIU from an existing Bank project in Chad will be explored. The capacity assessment will include fiduciary functions, M&E, as well as Environmental and Social safeguard compliance. Staff will include at least a Project Coordinator, a Procurement Specialist, a Financial Management Specialist, an Accountant, a M&E Specialist, an Environmental Safeguard Specialist, and a Social Development Specialist. Technical experts will be hired as needed. Capacity building of the implementing agency is essential to ensure PIU has adequate knowledge of the ESF requirements and their implementation and recommendations for capacity building will be included as part of the final capacity building assessment. It is possible that a UN agency will be an implementing entity for the project (and especially for activities that will take place in year one), and in this case that agency will need to apply the ESF to their activities and comply with E&S national regulations. II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Substantial Environmental Risk Rating Substantial The environmental risk is deemed substantial at concept stage because of the nature and scale of the project, and associated risks and impacts. Indeed, the project financing is geared to (i) construction, rehabilitation, upgrading, Mar 13, 2023 Page 3 of 10 The World Bank Chad Fragility and Resilience (P177163) and/or equipment of small community infrastructure; and (ii) larger scale investments in key economic hubs – including cities and towns and their hinterlands – to improve local economic development, create short-term benefits to existing economic activities, but also to build longer-term economic sources of resilience. Transformative investments that link urban centers and hinterlands, support local value chains, provide trade and transport related services – including local connectivity between markets and agricultural production sites, commercial and industrial spaces. The main environmental risks identified at concept stage are related to: (i) vegetation clearing, (ii) nuisances like dust and noise, (iii) poor construction-related waste management, (iv) the potential impact of construction and excavations on cultural heritage sites,(v) occupational health and safety issues related to civil works, (vi) water use for local economic development activities and investments in cities and towns. However, majority of the risks and impacts likely to be generated from the project activities will be site-specific, temporary, and manageable to an accepted level by applying good construction industry best practices. Social Risk Rating Substantial The social risk is assessed as substantial at this stage of preparation. This is due to the anticipated physical footprint of project activities involving construction and/or rehabilitation of infrastructure in both urban and rural areas. The main social risks identified at concept stage relate to: (i) potential economic and physical displacement due to civil works; (ii) security related risks in project areas that are in insecure, or in hard to access zones; (iii) possible exclusion of marginalized and vulnerable groups, including youth and women from the labor intensive works/income generating activities; (iv) potential social tensions in areas with host populations and refugees; and (v) the implementing capacity of the PIU under the Ministry of Economy, Developmental Planning and International Cooperation as it related to Bank financed projects under the ESF. SEA/SH is also a concern overall in Chad, and in particular in refugee/IDP situations. SEA/H risks will need to be further assessed once the project areas and activities are more clearly defined. Public Disclosure B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: This standard is relevant. The project is expected to have overall positive environmental and social impacts as it will contribute to improve access to basic services, restore livelihoods and strengthen local institutions in targeted areas of Chad. The primary risks identified during early preparation include: (i) environmental and community health related risks from the civil works – especially in rural areas where communities will be mobilized to provide labor. Special attention will be paid to community health and safety issues as well as proper labor management procedures in line with ESS2; (ii) occupational health and safety issues; (vi) physical and/or economic displacement; risks of exclusion from project benefits, particularly in terms of income generating activities. Security context may also affect the proposed project activities. The project is being processed under a phased approach to try and address the rapidly changing and unstable country situation, and significant capacity constraints within the transitional government. First year will be dedicated to emergency small-scale investments such as small water pumps, small scale gardenning, etc. (to be implemented by a UN agency – potentially IOM – which is already operating in the project area). During this first year of implementation, the PIU will also have additionnal time to properly prepare all necessary arrengements and Mar 13, 2023 Page 4 of 10 The World Bank Chad Fragility and Resilience (P177163) recruitments for the activities to be implemented under year 2 to year 5. This will allow more rapid preparation and more flexibility in preparation of fiduciary and safeguards requirements. To mitigate these risks and their related impacts, the PIU will prepare an ESMF at least covering investments for year 1 by appraisal that will contain guidance regarding how to minimize the negative impact of civil works and a GBV/ SEA/SH action plan will be developed as well as an assessment of security risks in project areas as part of the ESMF. The current security context is unstable, particularly in the Northern parts of the country with more issues regarding access and therefore may pose risks to project beneficiaries as well as project activities and assets. A Security Risk Assessment (SRA) will be included in the ESMF. An ESMF that covers the activities planned for the first year will be prepared and disclosed by appraisal; the ESMF will be updated during implementation. In addition, in order to mitigate social risks, the Stakeholder Engagement Plan (SEP) will contain the details for a functional project level grievance mechanism (GM) that is fully accessible to vulnerable groups, such as women, children, boys from disadvantaged backgrounds, and people with disabilities, with effective, accessible, and inclusive communication measures regarding its existence and use. This will be prepared and disclosed by appraisal. Regarding civil works, the impacts related to potential land acquisition will be managed through a Resettlement Policy Framework (RPF), to be prepared and disclosed by appraisal. An Environmental and Social Commitment Plan (ESCP) will be prepared by the Borrower with the support of the Bank by appraisal. The ESCP will reflect the substantive measures and actions that will have to be taken by the Borrower to meet environmental and social requirements during implementation along with dates adjusted to reflect the flexibilities allowed for emergency procedures. Public Disclosure Areas where “Use of Borrower Framework” is being considered: This project will not use the Borrowers’ Environmental and Social Frameworks in the assessment or in the development and implementation of investments. However, it will comply with relevant national legal and regulatory requirements. ESS10 Stakeholder Engagement and Information Disclosure This standard is relevant. Key stakeholders include various ministries in the sectors targeted by the project such as the Ministry of Economy, Developmental Planning and International Cooperation, and Territorial Development, Land Management, National Reconciliation, Agriculture, Livestock. At the ‘commune’ level, Local Steering Committees (LCS) will also be established in the target areas. The forcibly displaced and host communities living in Chad are considered to be a key stakeholders in the project. The Borrower will prepare a Stakeholder Engagement Plan (SEP) to be disclosed by appraisal, which details how to identify, meaningfully consult and include stakeholders in the project lifecycle. The SEP will identify and assess the level of project impact on stakeholders and their interest and support for the project; lay out an approach to build and maintain a constructive relationship, especially with project affected parties; promote and provide means for effective and inclusive engagement with the vulnerable groups throughout the project life cycle; ensure that appropriate project information on environmental and social risks and impacts is disclosed to stakeholders in a timely, understandable, accessible, and appropriate manner and format. During project implementation, the SEP will Mar 13, 2023 Page 5 of 10 The World Bank Chad Fragility and Resilience (P177163) be continuously reviewed, and any major revisions effected to the SEP publicly disclosed to stakeholders. The needs of vulnerable groups will need to be considered to adjust for their meaningful participation. The SEP will incorporate a comprehensive project wide Grievance Mechanism (GM) that will enable a broad range of stakeholders to channel concerns, questions, and complaints to the implementation agency. The GM will include channels/procedures for SEA/SH complaints including multiple and accessible entry points, referral to GBV service providers and management of complaints in a confidential and survivor centered manner. B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions This standard is relevant because the project will involve direct and indirect workers. The project is likely to finance short term, unskilled workers from neighboring communities (under component 1 LIPW) as well as some skilled engineers that will be brought in by the contractor(s). The project could include the following categories of workers: direct workers, contract workers, community workers and primary supply workers. Direct workers include full-time and part-time workers assigned to the PCUs and consultants hired as needed for the project. PCU staff, primary supply workers, and possibly contract workers and, potentially, contract workers and government employees. Civil servants working with the project on a full-time or part-time basis will remain subject to the terms and conditions governing their existing terms of employment or agreements in the public sector, unless there has been a valid Public Disclosure agreement between the two parties. Civil servants working with the project on a full-time or part-time basis will remain subject to the terms and conditions governing their existing public sector terms and conditions of employment or agreements, unless there has been a valid legal transfer of their employment or engagement to the project. The contractual workers include contractors and subcontractors engaged for the planned civil works. The terms and conditions of contracts for all workers involved will comply with national labor laws to ensure that working conditions are acceptable (terms and conditions of employment, non-discrimination and equal opportunity, worker organizations). The project will require contractors (local and international), including private sector contractors, to reflect the requirements of the project's labor management procedures in the management of their workers. To the extent possible, the project will encourage a labor-intensive public works (LIPW) approach in the construction or rehabilitation of the social infrastructure. Most of the workforce is expected to be hired locally except for a few skilled workers. A Labor Management Procedure (LMP) that specifies the terms and conditions of employment, non- discrimination and equal opportunities, workers' organizations, measures against child and forced labor, grievance redress mechanism for labor disputes, occupational safety and health measures for the workers (direct and contract) will be prepared prior to appraisal. ESS3 Resource Efficiency and Pollution Prevention and Management Mar 13, 2023 Page 6 of 10 The World Bank Chad Fragility and Resilience (P177163) This Standard is currently relevant. Activities financed under component 1 such as civil works will generate air emissions and wastes. The ESMF, ESIA/ESMP will include sections on resource efficiency and Pollution Prevention and Management. Assessment of risks and impacts, and proposed mitigation measures related to relevant requirements of ESS3 will be included within scope of the ESMF, ESIAs and ESMPs as relevant. Air emissions: During the construction phase, the air emissions anticipated are exhaust from heavy vehicles and machinery, and dust generated by construction activities. The relatively short-term and small-scale nature of the works suggest that the air emissions’ level will not be excessive or cause long-term nuisance. The ESMF and specific ESIAs/ESMPs will include mitigation measures, such as dust suppression and vehicle maintenance, to minimize the impact of air emissions. Waste management: waste is mainly expected from construction sites. The waste can be solid, liquid, non-hazardous and hazardous, such as hydrocarbon oils from construction machinery and vehicles. The site ESIA/ESMPs will determine the source, type, and risks associated with the waste likely to be generated by the project and, if such waste cannot be avoided, the ESIA will propose appropriate measures to minimize, reduce and, where not possible, mitigate, the risks associated with the waste. Use of Raw materials: Should the project utilize raw materials for construction activities, the material will be sourced following measures specified in Good International Industry Practices. ESS4 Community Health and Safety This Standard is currently relevant. It is expected that community-level investments in basic services (construction/rehabilitation/ upgrading, and/or equipment of small community infrastructure) will be constructed by community members under labor intensive public work arrangements and waste management from Public Disclosure construction/rehabilitation can affect community health. To mitigate such risks, the ESMF will provide guidance to protect community health from wastes and (water) contamination. The ESMF will also describe the SEA/SH risk, and identify appropriate mitigation measures. Some areas targeted by the proposed project are particularly troubled by recurrent violence. Moreover, the presence of refugees and internally-displace people (IDPs) in the project areas may pose a risk to the project in terms of increased pressure for resources, and lack of opportunities. Given the fluid security situation in Chad especially in the Northern part, and potential risks to the project beneficiaries and/or project assets, the Borrower will prepare a Security Risk Assessment (SRA) as part of the ESMF. On the basis of the SRA, a subsequent Security Risk Management plan (SMP) may then be prepared as needed, prior to starting project activities. This will be done in accordance with ESS1 (Assessment and Management of Environmental and Social Risk and Impacts) and ESS4 (Community Health and Safety). Potential UN agency as implementing entity may need to prepare its own SMP in line with the ESF/ESS4, prior to starting activities. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Under sub-component 1.1., the project will invest in the construction, rehabilitation, upgrading, and/or equipment of small community infrastructure. In addition, sub-component 1.2 will include investments in key economic hubs; these transformative investments will link urban centers and hinterlands, support local value chains, provide trade and transport related services – including local connectivity between markets and agricultural production sites, commercial and industrial spaces. These activities can lead to possible temporary restrictions on land use, some land acquisition, the loss or disruption of income or livelihood activities, and physical and/or economic displacement for individuals or groups of people. The exact locations and the specific types of activities are not yet known. Therefore, a Resettlement Policy Framework (RPF) compliant with the national legal and regulatory framework and ESS 5 will be Mar 13, 2023 Page 7 of 10 The World Bank Chad Fragility and Resilience (P177163) developed for the project. The RPF will detail the principles that will be used during the implementation phase of the project where individual Resettlement Action Plans (RAP) will be prepared for each component of civil works of the project. The RPF will be reviewed, consulted upon, and disclosed, both in the country and on the World Bank’s web site prior to appraisal. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources This standard is relevant. Project activities could be implemented in areas of potential biodiversity importance. These include the construction, rehabilitation, upgrading, and/or equipment of small community infrastructure (e.g. boreholes, local roads and paths etc.); larger scale investments in key economic hubs – including cities and towns and their hinterlands – to improve local economic development, create short-term benefits to existing economic activities, but also to build longer-term economic sources of resilience. However, adverse impacts on critical habitats are not expected. Most of the project’s activities will be in urban/peri-urban and small-scale rural areas and project civil works are not expected to be in the vicinity of legally protected areas or areas of high biodiversity values. Relevant provisions will be included in the ESMF. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities This standard is not considered relevant as there are no Indigenous Peoples/Sub-Saharan African Historically Public Disclosure Underserved Traditional Local Communities currently identified in the project area. Should the presence of indigenous communities be confirmed through further screening during implementation, the necessary assessments, consultations and instruments will be undertaken per the requirements of this standard. ESS8 Cultural Heritage This standard is currently considered relevant as the exact project location is still unknown. For activities related to component 1, once the areas for construction are identified, the ESIA will include a section on cultural heritage to ensure that there are no pre-existing or known cultural heritage sites that could be affected by the project. In accordance with ESS10, the Borrower will identify stakeholders relevant to the cultural heritage already known to exist or likely to be encountered during the project lifecycle, and carry out meaningful consultations, with them and with national heritage institutions and local communities. When impact is unavoidable, adequate mitigation measures will be outlined in the environmental and social assessment instruments and the ESMF and the construction contracts will include as “Chance Find” Procedures. Where needed, a Cultural Heritage Management Plan will be prepared and consulted upon with stakeholders. ESS9 Financial Intermediaries This ESS is not relevant as the project does not involve FIs. Mar 13, 2023 Page 8 of 10 The World Bank Chad Fragility and Resilience (P177163) C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways TBD OP 7.60 Projects in Disputed Areas No III. WORLD BANK ENVIRONMENTAL AND SOCIAL DUE DILIGENCE A. Is a common approach being considered? No Financing Partners n/a B. Proposed Measures, Actions and Timing (Borrower’s commitments) Actions to be completed prior to Bank Board Approval: SEP, LMP, ESMF, including a SRA and SEA/SH risk assessment, RPF and ESCP will be completed prior to project appraisal Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP): The ESCP will include: Public Disclosure PIU structure Implementation of the GM Preparation of site-specific ESMP for any works including the development and implementation of: a proportional Health, Safety and Environmental (HSE) plan in line with World Bank Group Environment, Health and Safety (EHS) Guidelines (for construction activities) Safety management plans for activities that will take place in areas deemed to be at risk SEA/SH Prevention and Response Action Plan (and mapping of services). This plan will include a budget and will be based on the SEA/SH risks and mitigation measures identified in the ESMF. preparation of any site-specific RAPs preparation of an SMP C. Timing Mar 13, 2023 Page 9 of 10 The World Bank Chad Fragility and Resilience (P177163) Tentative target date for preparing the Appraisal Stage ESRS 27-Mar-2023 IV. CONTACT POINTS World Bank Contact: Emilie Sandrine Celine Jourdan Title: Senior Operations Officer Telephone No: 5780+2246 / 223-20-702246 Email: ejourdan@worldbank.org Contact: Mare Lo Title: Senior Urban Development Specialist Telephone No: 5361+32241 / 1-202-4732241 Email: marelo@worldbank.org Borrower/Client/Recipient Borrower: Ministry of Economy, Development Planning and International Cooperation Implementing Agency(ies) Implementing Agency: Ministry of Economic Prospective and International Partnerships V. FOR MORE INFORMATION CONTACT Public Disclosure The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VI. APPROVAL Task Team Leader(s): Mare Lo, Emilie Sandrine Celine Jourdan Practice Manager (ENR/Social) Pia Peeters Recommended on 10-Mar-2023 at 12:24:59 EST Safeguards Advisor ESSA Nathalie S. Munzberg (SAESSA) Cleared on 13-Mar-2023 at 16:21:26 EDT Mar 13, 2023 Page 10 of 10