The World Bank RESTRUCTURING ISDS Irrigation Development and Support Project (P102459) Integrated Safeguards Data Sheet Restructuring Stage Restructuring Stage | Date ISDS Prepared/Updated: 05-Oct-2022| Report No: ISDSR35012 Regional Vice President: Victoria Kwakwa Country Director: Nathan M. Belete Regional Director: Ayat Soliman Practice Manager/Manager: Holger A. Kray Task Team Leader(s): Hazem Ibrahim Hanbal The World Bank RESTRUCTURING ISDS Irrigation Development and Support Project (P102459) . I. BASIC INFORMATION 1. BASIC PROJECT DATA Project ID Project Name P102459 Irrigation Development and Support Project Task Team Leader(s) Country Hazem Ibrahim Hanbal Zambia Approval Date Environmental Category 07-Apr-2011 Full Assessment (A) Managing Unit SAEA3 PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 201.02 Total Financing 201.02 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 115.00 IDA Credit 115.00 Non-World Bank Group Financing Counterpart Funding 86.02 Borrower/Recipient 23.45 Local Beneficiaries 62.57 2. PROJECT INFORMATION The World Bank RESTRUCTURING ISDS Irrigation Development and Support Project (P102459) PROG_INF O Current Program Development Objective To provide improved access to irrigation services in selected sites in the Recipient's territory . 3. PROJECT DESCRIPTION 1. In April 2011, the Board approved IDSP with a budget of US$115 million, the objective of the Project is to enhance smallholder farmers access to irrigation, given that nearly 92 percent of the agriculture sector in Zambia is rain-fed. The activities of the Project include the construction of one large-scale dam (Mwomboshi), three main irrigation schemes, and building farmers capacities in the utilization of modern irrigation practices. Direct Project beneficiaries are estimated to be 10,000 farmers in different locations in Zambia. In 2018, the Project received two-year extension to close in 2020, to allow compensating for delays in implementation. 2. IDSP was selected in 2019 to carry out remedial works needed for ten dams which were constructed / rehabilitated under the Water Resources Development Project (closed in November 2018) which was implemented in various locations in Zambia. These works are highly needed to ensure the safety of the neighboring communities. A time extension of 24 months (to close the Project in November 2022), with an additional finance of $30 million have been provided by the Board in May 2020, to allow completion of these remedial work, in addition to the completion of a number of delayed activities, and also payment of compensations to Project Affected People in some Project locations. Country Context 3. The Zambian national poverty rate remains high. The Zambian economy rebounded in 2021, with GDP growing at 4.6%, from a contraction of 2.8% during the pandemic in 2020. GDP is projected to grow by 3.8% over 2022–24, buoyed by an improved macroeconomic environment. However, climate-related risks exacerbate poverty by reducing the rate at which households escape poverty and moving those who are not poor into poverty1. Taking action toward reducing rural poverty and increasing income levels of the poorest in Zambia is therefore an urgent priority. Sectoral and Institutional Context 4. Agriculture is the backbone of the economy of Zambia and continues to be the largest employer in the country. Agriculture offers working opportunities for around 55 percent of the labor force and represents a major source of income for many households. However, since most of the farms are largely rainfed, the inherent variability in precipitation leads to a drag in production and the economy. During project preparation irrigation was underdeveloped with less than 5 percent of arable land under irrigation, and water supply and sanitation access was low with only 37 percent coverage in rural areas. 5. The Irrigation Development Support Project (IDSP, P102459, IDA Credit #48740) is a US$115 million project, approved on April 7, 2011, and declared effective on November 11, 2011 with an original closing date of November 30, 2018. A first restructuring was approved in November 2018 when, i) the Project Development Objective (PDO) was changed from “to increase yields per hectare and volume of products marketed by smallholders benefitting from investments in irrigation in selected sites served by the project� to “to provide improved access to irrigation services in 1 World Bank. 2015. Climate Change and Poverty. Climate Change and Poverty Conference The World Bank RESTRUCTURING ISDS Irrigation Development and Support Project (P102459) selected sites in the Recipient's territory�, and ii) the closing date was extended by two years until November 30, 2020; the extension was needed to address the significant implementation delays due to large resettlement activities at the planned Project sites which consumed more than five years. The Project was again restructured in December 2019 to allow for the implementation of the first phase of the remedial measures on the ten dams built under the closed Water Resources Development Project (WRDP, P114949). Finally, the Project was restructured for a third time in May 2020 to allow for an Additional Financing of US$30 million and provided two-year extension of the Closing Date to November 30, 2022. The additional financing provided funding for remedial works on the ten WRDP dams which were found to be out of compliance with safety standards and to ensure completion of post RAP activities on land for land compensation. It also aimed to allow the completion of several remaining activities under IDSP, including the construction of irrigations schemes and the use of IDA proceeds to pay for the cost associated with the IDSP's Resettlement Action Plan, namely compensations to Project Affected People. Implementation progress and proposed project restructuring 6. This proposed restructuring seeks management approval for a two-year no-cost extension of the Project’s Closing Date to allow for the completion of works initiated under the project. 7. Most investments are substantially completed with some works being delayed on the irrigation schemes, and support to communities, in addition to the rehabilitation of the 10 dams. Works at the Mwomboshi dam and irrigation scheme the largest Sub-project under IDSP with a budget close to US$50 million, are complete. Currently more than 1000 ha of land were brought under irrigation, in addition to several plots of lands of around 50 ha being used to train farmers on irrigation practices. Once fully operational the site will provide irrigation services to more than 5,500 ha and will support the livelihood of nearly 9,000 beneficiaries in the supported community. Works on irrigation schemes at the other two sites, Lusitu and Musakashi South, are 90 percent complete, while the activities at the Musakashi North site are still behind, with a 60 percent of completion. Upon completion of these sites, an additional 800 ha of land will have access to irrigation, allowing farmers to grow two agriculture seasons in the same year and, therefore, increasing their income levels. Successful completion of the irrigation scheme will contribute to improved livelihood for project affected households and surrounding communities. 8. The Project has largely completed the implementation of the Resettlement Action Plan for IDSP works with 457 houses built on the three sites and allocated to all relocated households. All the required financial compensation to resettled communities has been disbursed, with a total value of around US$2 million. However, a few small works are due to be completed to support these communities, specifically with access to drinking water, and services such as schools and clinics which are all in advanced stage on all sites, as well as the full operation of irrigation schemes in Lusitu and Musakashi to ensure livelihood improvement activities are completed as per project RAP. 9. Works under the 10 dams’ component are significantly delayed in terms of the designs and the rehabilitation works. The dam remedial works consist of strengthening and stabilizing existing dam embankments and completing and reinforcing existing spillways to ensure dam safety. The remedial measures will also include site remediation as identified by the Environment and Social Audit. To address the dams’ rehabilitation, it was agreed with GRZ that the Ministry of Agriculture (MoA) would sign a two-phase turn-key contract with United Nations Office for Project Services (UNOPS) to manage i) the preparation of designs and safeguards instruments, and ii) the implementation of rehabilitation works. The contract of the first phase covering the development of the designs and safeguard instruments, and preparation of tender packages for the 10 dams was signed in April 2020 between MoA and UNOPS, with a duration of seven months and was subsequently extended several times. On September 15, 2022, the World The World Bank RESTRUCTURING ISDS Irrigation Development and Support Project (P102459) Bank received a request from GRZ to extend the Project closing date by two years from November 30, 2022, to November 30, 2024. The requested time extension should allow for the completion of all rehabilitation works for the ten dams and ensure that they represent no threat to the neighboring communities as well as completion of outstanding IDSP core activities. 10. The institutional arrangements for the IDSP activities will remain the same as of the parent project . The IDSP PIU will lead on the implementation of all project activities. For the ten dams, the IDSP PIU will be supported by UNOPS who will supervise the implementation of all remedial measures including the implementation of the social and environmental measures already included in the original Environmental and Social Audit of the AF, the ESMPs and BMPs prepared for each dam and the Grievance Redress Mechanism (GRM). UNOPS will assist the government in transferring the infrastructure to the beneficiary communities and build their capacity with O&M. . 4. PROJECT LOCATION AND SALIENT PHYSICAL CHARACTERISTICS RELEVANT TO THE SAFEGUARD ANALYSIS (IF KNOWN) The Project will support the rehabilitation and management of large-scale dam(s) and earth dams as well as irrigation systems in varied and diverse social and environmental conditions across the Republic of Zambia. Zambia is part of the Zambesi and the Congo River basin, which are among Africa's most important river basins for flora and fauna biodiversity. However, deforestation, agricultural expansion, and other changes in land use have contributed to extensive environmental degradation. The project includes activities in areas near or within modified and natural habitats, with patches of natural vegetation and small rural villages with subsistence agriculture. No protected areas have been recorded within or near the project areas of the ten earth dams to be remediated or the current dams and irrigation systems under construction on the IDSP core sites. The restructuring will support the completion of works already commenced under the parent Project which includes i) the large dams for irrigation under the original parent project and ii) the 10 legacy earth dams from the water project. The IDSP Project areas include: I) Large dam and irrigation sites of the original parent project • Mwomboshi: large dam, including an irrigation scheme; • Musakashi: Irrigation schemes at both ‘North’ and ‘South’; • Lusitu: Water abstraction pumping station, including an irrigation scheme; and • Munsakamba (Mkushi), Mpika, Lumezi, Mukuyu (Kabwe), Chitwi (Luanshya), Lubambala (Mpika), Mpika, Shimabala, Buchetekelo, and Chapula (Lufwanyama): Irrigation schemes managed by Public Sector Irrigation Support Fund (ISF) sites which are managed by the Zambia Correctional Services (ZCS), Zambia College of Agriculture (ZCA), Zambia Police Service (ZPS), Zambia Centre for Horticultural Training (ZCHT). ii) 10 legacy earth dams • Dams: Chibalashi, Katembula, Kanyika, Kawiko, Nachibanga, Nabowa, Chikowa, Ndondi, Ngolongozya, and Makaba. These dams are located in 6 different provinces of Zambia, namely Luapula, Copperbelt, North-Western, Western, Eastern, and Southern. In general, the remote nature and geographical distribution of the varied activities conducted under the project complicate the monitoring and supervision of works and require adequate staff resources to achieve this. Further, the successful completion and rehabilitation of irrigation schemes and earth dams respectively, require enhanced community focus to maximize project benefits and improve livelihoods. The World Bank RESTRUCTURING ISDS Irrigation Development and Support Project (P102459) 5. ENVIRONMENTAL AND SOCIAL SAFEGUARDS SPECIALISTS ON THE TEAM Ruth Tiffer-Sotomayor, Environmental Specialist Njavwa Namposya Chilufya, Social Specialist Nicholas Stephen Zmijewski, Environmental Specialist SAFEGUARD_TABLE 6. SAFEGUARD POLICIES TRIGGERED Safeguard Policies Triggered Explanation The dams were funded under WRDP for which BP 4.01 was triggered. There are some outstanding Environmental Assessment (OP) (BP 4.01) Yes environmental impacts that will be addressed under IDSP. Performance Standards for Private Sector No Activities OP/BP 4.03 Natural Habitats (OP) (BP 4.04) Yes Forests (OP) (BP 4.36) Yes The Project has a Pest Management Plan for its own Pest Management (OP 4.09) Yes sites, the ten dams also has a Pest Management Plan developed earlier by the WRDP. Physical Cultural Resources (OP) (BP 4.11) Yes It was considered by WRDP. Indigenous Peoples (OP) (BP 4.10) No The policy was triggered and ARAPs were prepared Involuntary Resettlement (OP) (BP 4.12) Yes for the dam sites under WRDP. Cash compensations are completed. Land-for-land ongoing. Safety of Dams (OP) (BP 4.37) Yes The dam safety policy was triggered under WRDP. Projects on International Waterways (OP) The notification was sent for the WRDP to riparian Yes (BP 7.50) countries. Projects in Disputed Areas (OP) (BP 7.60) No KEY_POLICY_TABLE II. KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT A. SUMMARY OF KEY SAFEGUARD ISSUES 1. Describe any safeguard issues and impacts associated with the Restructured project. Identify and describe any potential large scale, significant and/or irreversible impacts. The current overall safeguards rating for the Project is Moderately Unsatisfactory (MU). The constrained E&S capacity at the PIU, in addition to the diverse nature and geographical distribution of sub-projects, have contributed to the low performance in E&S risk management for the Project. The World Bank RESTRUCTURING ISDS Irrigation Development and Support Project (P102459) Environmental and Social management during the AF: Several challenges have been encountered in the implementation of the agreed measures and actions for the AF. The PIU was not strengthened with the agreed additional E&S officers to support proper supervision of works; monitoring at project sites has been weak/inconsistent; and biodiversity measures described in the ESA for all the dams and irrigation schemes have not been fully implemented; delayed preparation of ESMPs and biodiversity action plans; health and safety aspects were not reported; and agreed capacity building activities were not implemented (see below for more details). In addition, pending livelihood improvement activities have been delayed, including preparation of the RAP audit which has been outstanding. Environmental and Social (E&S) instruments. The PIU has ensured that most Environmental and Social (E&S) risk management instruments has been disclosed on the IDSP webpage (https://www.idspzambia.org/). Although the main project instruments have been developed, consulted, and disclosed, required instruments for sub-project sites have been significantly delayed with several pending (see above). Since the safeguard instruments for the ISF sites, as well as various associated facilities, were not developed, reviewed and cleared by the World Bank as required by OP 4.01 ahead of works, an E&S Audit is to be conducted. Civil works and restoration/rehabilitation of project sites. Works have currently stalled with limited activities being conducted at project sites. Following restructuring, it is envisaged that all the remaining works in the project sites will be completed by December 2023. A detailed restoration plan for the three core sites (Mwomboshi, Lusitu, and Musakashi), including plan for restoration of temporary degraded sites (borrow pits, campsites, etc.), is under development by IDSP. Rehabilitation works on the 10 dam sites is expected to commence January 2023, and completed by December 2023. The project will ensure to obtain the necessary environmental licenses needed to initiate the rehabilitation works. Operation of the dam and irrigation schemes. Private operators will be engaged at each of the schemes to operate, manage and maintain the bulk water system for the benefit of all categories of farmers. In particular, the tasks of the operators will be to operate and maintain the irrigation infrastructure, drains, and roads, to ensure the sustainability of scheme operations and compliance with the ESMPs during operation. IDSP will ensure that the operators (dam and irrigation schemes) have adequate capacity to manage, monitor, and report on E&S measures. Supervision, Monitoring, and Reporting of E&S issues. The reporting on EHS issues have consistently been underreported over the past regular missions. The IDSP PIU have provided a summary of the number of issues highlighted during the progress period, however without providing any detail into the seriousness of the individual issues. Due to the lack of environmental monitoring data, it is unclear what effect/impact the irrigation sites, dams, and change of flow regime has had on the environment and downstream areas (including current condition and management of water quality, sediments, aquatic biodiversity, etc.). E&S Management capacity. Although the number of active worksites is limited, there are a number of remaining activities outstanding for which E&S supervision and leadership is required. The PIU has only the one (1) specialist covering both environmental and social issues for all project sites. The project involves technical, complex, and high- risk activities which require adequate attention to ensure the appropriate management of E&S risks and adequate implementation of the management plans. Considering the level of risk, number, and geographical spread of the sites, this level of staffing is deemed inadequate, and will be supplemented by two additional dedicated specialists (1 environmental and 1 social specialist) to support the Project. A Supervising Engineer (SE) is expected to be present on site to identify any issues, non-conformaties, propose action lists of remedies, and support the implementation through contractors. The SE has only one safeguard specialist (E&S) engaged on a part-time basis. However, The World Bank RESTRUCTURING ISDS Irrigation Development and Support Project (P102459) considering the large scope of activities and geographical distribution, the SE will need to recruit additional EHS capacity in the form of an Environmental Officer and an OHS specialist. UNOPS have supported the IDSP on the development and implementation of surveillance plans and EPPs for the ten dams, acoording to the OP 4.37. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area. As the rehabilitation works on the ten dams will take place largely within the existing footprint of the dams no additional significant environmental nor social impacts are expected. Nevertheless, the E&S instruments will guide to mitigate any indirect and long-term impacts at the sites. Electricity access is uncommon in the project areas. Firewood is the main source of energy in most of these areas, which has historically led to widespread deforestation exacerbated by the influx of population. Development plans for these community areas should include a variety of options to mitigate deforestation. 3. Describe any potential alternatives (if relevant) considered to help avoid or minimize adverse impacts. N/A 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. The institutional arrangements for the IDSP activities will remain the same as for the Parent project and the IDSP PIU will lead the implementation of all project activities. For the ten dams, the IDSP PIU will be supported by UNOPS. UNOPS will hire an Environmental, Health and Safety Expert and Social Development Expert whose Terms of Reference are acceptable to the Bank. These two experts will be supported IDSP by supervising the implementation of all remedial measures, including all measures detailed in the Environmental and Social Audit for the parent project, as well as the ESMPs, BMPs and RAPs for each of the legacy dams. Experienced and well-proven environmental and social performing contractors are to be engaged to complete the works at all project sites. The PIU will ensure that the requirements detailed in the safeguard instruments are transferred to the tender and contract documents and share these with the Bank for clearance. All tender documents will include an EHS line for a bill of quantities for the implementation of EHS measures. All contracts will require the hiring of an ESH manager who will the responsible to the implementation of the EHS measures. PIU safeguard team will work closely with the procurement team to ensure the proper inclusion of all EHS measures in the tender and contracts. The IDSP PIU will be strengthened by the hiring of one (1) additional Environmental, Health, and Safety Specialist (EHS) and one (1) Social specialist. The team of E&S specialists will ensure good practice supervision of the remaining works, including identifying any E&S issues, non-conformaties, developing action lists of remedies, and supervising contractors and subcontractors fully. The World Bank RESTRUCTURING ISDS Irrigation Development and Support Project (P102459) 5. Identify the key stakeholders and describe the mechanism for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The project will finance through Component 1: stakeholder engagements, capacity building in dam safety, environmental and social monitoring, and consultations, among other things. IDSP PIU and UNOPS will hold consultation meetings with communities in the project areas. Consultations, trainings and awareness raising will be directed at affected communities, dam committees at each site, District officials from water (DWO), Agriculture (Irrigation Officer), and respectively from Environment, Community development, and Lands. DISCLOSURE_TABLE B. DISCLOSURE REQUIREMENTS ENV_TABLE Environmental Assessment/Audit/Management Plan/Other Date of receipt by the Bank Date of submission for disclosure 23-Sep-2016 14-Oct-2016 For Category ‘A’ projects, date of distributing the Executive Summary of the EA to the Executive Directors “In country� Disclosure RESETTLE_TABLE Resettlement Action Plan/Framework Policy Process Date of receipt by the Bank Date of submission for disclosure 25-Nov-2016 09-Dec-2016 “In country� Disclosure PEST_TABLE Pest Management Plan Was the document disclosed prior to appraisal? No Date of receipt by the Bank Date of submission for disclosure “In country� Disclosure COMPLIANCE_TABLE C. COMPLIANCE MONITORING INDICATORS AT THE CORPORATE LEVEL EA_TABLE OP/BP/GP 4.01 - Environment Assessment The World Bank RESTRUCTURING ISDS Irrigation Development and Support Project (P102459) Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Practice Manager (PM) review Yes and approve the EA report? Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes NH_TABLE OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or degradation of critical Yes natural habitats? If the project would result in significant conversion or degradation of other (non- critical) natural habitats, does the project include mitigation measures Yes acceptable to the Bank? PM_TABLE OP 4.09 - Pest Management Does the EA adequately address the pest management issues? No Is a separate PMP required? Yes If yes, has the PMP been reviewed and approved by a safeguards specialist or PM? Are PMP requirements included in project design? If yes, does the project Yes team include a Pest Management Specialist? PCR_TABLE OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? Yes Does the credit/loan incorporate mechanisms to mitigate the potential adverse Yes impacts on cultural property? IR_TABLE OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework Yes (as appropriate) been prepared? If yes, then did the Regional unit responsible for safeguards or Practice Manager Yes review the plan? FO_TABLE OP/BP 4.36 - Forests The World Bank RESTRUCTURING ISDS Irrigation Development and Support Project (P102459) Has the sector-wide analysis of policy and institutional issues and constraints Yes been carried out? Does the project design include satisfactory measures to overcome these Yes constraints? Does the project finance commercial harvesting, and if so, does it include NA provisions for certification system? SD_TABLE OP/BP 4.37 - Safety of Dams Have dam safety plans been prepared? Yes Have the TORs as well as composition for the independent Panel of Experts (POE) Yes been reviewed and approved by the Bank? Has an Emergency Preparedness Plan (EPP) been prepared and arrangements No been made for public awareness and training? PIW_TABLE OP 7.50 - Projects on International Waterways Have the other riparians been notified of the project? Yes If the project falls under one of the exceptions to the notification requirement, has this been cleared with the Legal Department, and the memo to the RVP Yes prepared and sent? Has the RVP approved such an exception? Yes PDI_TABLE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for Yes disclosure? Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups Yes and local NGOs? ALL_TABLE All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been Yes prepared for the implementation of measures related to safeguard policies? The World Bank RESTRUCTURING ISDS Irrigation Development and Support Project (P102459) Have costs related to safeguard policy measures been included in the project Yes cost? Does the Monitoring and Evaluation system of the project include the monitoring Yes of safeguard impacts and measures related to safeguard policies? Have satisfactory implementation arrangements been agreed with the borrower Yes and the same been adequately reflected in the project legal documents? III. APPROVALS Task Team Leader(s) Hazem Ibrahim Hanbal Approved By Safeguards Advisor Peter Leonard 18-Nov-2022 Practice Manager/Manager Meeta Sehgal 18-Nov-2022 .