The World Bank Lao PDR Priority Skills for Growth (P172774) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 01/07/2022 | Report No: ESRSA01658 Jan 07, 2022 Page 1 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Lao People's Democratic EAST ASIA AND PACIFIC P172774 Republic Project Name Lao PDR Priority Skills for Growth Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Education Investment Project 1/10/2022 2/28/2022 Financing Borrower(s) Implementing Agency(ies) Ministry of Finance Ministry of Education and Sports, Ministry of Labor and Social Welfare Public Disclosure Proposed Development Objective To enhance access, quality and relevance of skills development and employment services for youth and other vulnerable groups in priority sectors, and in case of an Eligible Crisis or Emergency, respond promptly and effectively to it. Financing (in USD Million) Amount Total Project Cost 46.00 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 has the following three components: Component 1: Improving the quality and relevance of the TVET system (US$ 23 million); Component 2: Enhancing job matching and youth employability (US$ 18 million); and (iii) Component 3: Better governance, project management, and monitoring and evaluation support. It also includes a CERC zero component: This component will provide immediate response in the event of an eligible crisis or emergency, to re-allocate project funds to support emergency response and recovery. Jan 07, 2022 Page 2 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) The program’s coverage is nationwide, given its focus on system-level reforms. It will also support specific institutes (TVET colleges, SDCs, job centers and so forth) across all 17 provinces, with a focus on reaching disadvantaged populations. Component 1: Improving the quality and relevance of the TVET system (US$ 23 million). This component will modernize the TVET system in Lao PDR such that it is responsive to labor market needs, agile and equitable. It will do so by supporting system-level reforms and interventions (subcomponent 1.1) as well as institute-level reforms in specific institutes (subcomponent 1.2), which will serve as a model for other institutes. Reforms and interventions will cover both pre-employment and workforce training. Each sub-component will include interventions with immediate impact and those with longer-term impact . Subcomponent 1.1: System-level reform. This subcomponent comprises three sets of activities. First, it will modernize the curricula in the priority sectors (agriculture, logistics and ICT). Next, it will strengthen quality assurance in skills training institutes. Activities under this sub-component are aligned with Outcome 2 of Lao PDR’s TVET Development Plan (2021-25) and will benefit public and private institutes alike due to their system-level reach. Sub-component 1.2: Institute-level reform. This sub-component will operationalize specific reforms from sub- component 1.1 in 10-12 public TVET colleges, including ensuring students in the selected institutes: (1) receive high- quality skills training; (2) get timely employability-related support; and (3) benefit from being in a well-governed institute. Public Disclosure For the new curricula to be operationalized well, two things are important: (1) better teacher performance; and (2) better equipment and learning facilities. The project will support Institute Development Plans, allowing it to customize support for each institute. The plans will be developed based on a needs assessment as identified in the TVET Development Plan and based on institution annual development plans. Key activities to be financed under this subcomponent include (a) the physical refurbishment of selected institutes; (b) the procurement of needed equipment, goods, works, and services including farming equipment (tractors, combine or harvester, plows, mowers, wagon, cultivators and raw materials), ICT tools (desktop computers, laptops, software to accommodate learning, data projector, tablets, smart TV, speaker, printer, thumb drive, webcam, headset) and logistics (equipment to accommodate practical training) and (c) capacity development of staff in the institutions selected so staff can provide better training. To ensure that no student loses the opportunity to access a TVET college because of insufficient funds for tuition and board, the project will finance scholarships for up to additional 500 students per year, with priority given to female students for boarding costs. The Sub-component will provide employability support for TVET colleges which encompass three types of activities. First, the project will increase the number of students with access to job providers and enhance students with job- readiness skills including soft skills. Toward this end, it will support (a) the development of tools and guidelines for career counsellors at TVET institutes, including jobs diagnostics tests; (b) select counsellors trained for providing career counselling services to students, (c) provision of training for career counsellors to implement the vocational and career guidance manuals in TVET institutes, and (d) modernize and enhance counselling systems using online platforms. Second, the project will improve the ability of the Education Management Information System (EMIS) to Jan 07, 2022 Page 3 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) track graduates’ employment prospects. It will (a) support the process of conducting tracer studies in 10-12 TVET institutions; (b) track student’s employability at least 6 months after receiving consultation; and (c) enhance both the system and graduate tracking tools based on the data collected from t he sample. Finally, it will strengthen links with the private sector. This subcomponent will 10-12 TVET institutes in implementing critical reforms in governance, management and personnel at selected levels. Component 2: Enhancing job matching and youth employability (US$ 18 million). The objective of this component is to: (i) expand coverage and improve the services and capacity of public employment centers; (ii) promote provision of high quality and relevant skills through short-term training programs, with a particular emphasis on youth and vulnerable groups; and (iii) facilitate labor market entry and job retention through timebound wage subsidies. Component 2 will finance three sub-components focusing on employment services; training and stipends for the youth and vulnerable; and a wage subsidy program. The component will also support immediate interventions for big impact as well as longer-term reforms. Sub-component 2.1: Strengthening the service delivery capacity of employment services. This sub-component will focus on expanding the coverage of employment services to priority districts and strengthening the capacity of job centers to deliver improved services to jobseekers and employers. The proposed activities are: (a) expanding coverage of employment services at district level to 36 districts, and equipping the existing 18 job centers with essential items such as desks, chairs, computers, printers, and office supplies; (b) strengthening jobseeker profiling practices to enhance job matching by job centers; (c) improving employment service personnel capacity to do matching which includes developing and providing training on counseling and on how best to reach out to employers, including the Public Disclosure private sector; (d) development of training materials for basic training provided by the employment services themselves (which complements referrals to third parties for more complex training) and related communication materials to be used by job center personnel at all levels; (e) improving employment service outreach and communications, including advocacy and awareness raising on availability of employment, in-demand occupations, skills of jobseekers and other factors; (f) funding support for job fairs and deepening partnership with the private sector. The project will finance regular job fairs at different levels, bringing together employers and job seekers. Sub-Component 2.2. Skills development and employment generation support for priority groups. The second sub- component would support upgrading of the skills training sub-system operated by MoLSW and improve access to training for youth and vulnerable groups, who do not have the prior education or skills needs provided by project TVET colleges. It would do this through enhancement of skill standards and certification, upgraded training content, and provision of training stipends for short-term training programs, focusing mainly on youth and priority groups, and reskilling for migrants. These trainings, in contrast to TVET, would be short-term trainings, 3-6 months. More specifically, the sub-component will finance: (i) development of skills standards and the certification system for skills training. This would include updating skills standards to reflect labor market needs and strengthening the skills certification system, including a mechanism for recognition of previous learning (RPL); (ii) in partnership with MOES and industry, upgrading curriculum and trainer capacity for priority skills training which would be aligned with the skills standards; (iii) in consultation with employers, development of courses and online e-learning courses for priority occupations, tailored to the needs of the labor market; and (iv) provision of stipends and travel allowances for trainees to improve access to training, focusing on vulnerable groups, poor and/or youth job seekers, particularly those living in rural areas, migrant workers, and people affected by COVID. Jan 07, 2022 Page 4 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) Sub-component 2.3: Wage subsidies. This sub-component will support on-the-job training by piloting and evaluating a wage subsidy program. While this would be something new for Lao PDR, wage subsidies have been a significant part of the COVID-19 response across the world, with around 35% of developing countries (and over three quarters of OECD countries) implementing a wage subsidy scheme. A timebound wage subsidy may have a positive impact on employment through different channels. First, the work experience gained may increase long-term employability. Second, skills acquired on the job may increase worker productivity to a level above minimum wages. Third, firms are able to observe the quality of subsidized workers and may retain more productive workers beyond the period of the subsidy. Finally, in the case of temporary macro-shocks in the labor market, temporary subsidies may facilitate ongoing attachment to the labor market and minimize the longer-term impacts of unemployment. The sub-component would finance design of the scheme, the wage subsidies themselves, and evaluation of a pilot to assess suitability for scaling up. Design of the scheme wou ld require a transparent mechanism for identifying eligible firms and workers or jobseekers, building on the networks of public employment services. The scheme would focus on two target groups. The first would be youth jobseekers (including returning migrants)striving to enter the labor force and those who are currently unemployed and registered with the employment services. The objective would be to facilitate youth and unemployed workers to gain work experience and build skills to improve their employability. The second target group would be workers in viable enterprises (including returning migrants) which are experiencing temporary liquidity constraints as a result of the COVID-19 shock. In both cases, a portion of wages would be provided to employers as a subsidy, contingent on firms paying some portion of the total wage. The Public Employment System would facilitate the matching process between firms and jobseekers. The pilot would Public Disclosure test key design features, including the appropriate level(s) and duration of the subsidy (which would be timebound, but no less than 6 months), conditions for firms and workers participation, processes for payment of subsidies, and reporting requirements and management of the scheme to minimize potential abuses. An evaluation would be undertaken after an initial period of scheme implementation to assess net employment effects for different target groups (e.g., due to potential substitution effects), cost effectiveness, and sustainability. Based on the evaluation findings, the program could be scaled based on available resources. Component 3: Better Governance, Project Management and M&E Support (US$ 5 million). The objective of this component is to strengthen the responsiveness, overall capacity and effectiveness of the skills and employability sector in Lao PDR. This will require close collaboration between MoES and MoLSW on the one hand as well as between the government and the private sector to ensure systems and activities are aligned and coherent. The component will support effective management and monitoring and evaluation (M&E) and ESF implementation by the project which will also contribute to achieving the overall objectives and sustainable development outcomes of the project. Component 4: CERC Zero Component. This component is added to provide platform for providing immediate response in the event of an eligible crisis or emergency, to re-allocate project funds to support emergency response and recovery. An addendum to the ESMF will be prepared and applied after the project effectiveness and before implementation of CERC activity or sub-project to be identified. Jan 07, 2022 Page 5 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) D. Environmental and Social Overview D.1. Detailed project location(s) and salient physical characteristics relevant to the E&S assessment [geographic, environmental, social] The project aims to increase and improve the acquisition of market-relevant skills and enable successful transition to jobs in Lao PDR, and in case of an Eligible Crisis or Emergency, respond promptly and effectively to it. It will be implemented nationwide where job seekers and trainees are seeking for relevant skill development and employment opportunities. The project expected to benefit all the 23 public TVET and 67 private TVET institutes nationwide, and approximately 1,500 teachers and 98,000 students, and 53,000 youth and trainees benefiting each year nationwide and over 14,000 stipendees and beneficiaries of a pilot wage subsidy. Project will improve the quality and relevance of skills training programs, upgrade the skills training system in Lao PDR, the project will also modernize the curricula in the priority sectors (agriculture, logistics and ICT). Key activities include (a) the physical refurbishment including renovation of selected institutes; (b) the procurement of needed equipment, goods, works, and services including farming equipment (tractors, combine or harvester, plows, mowers, wagon, cultivators and raw materials), ICT tools (desktop computers, laptops, software to accommodate learning, data projector, tablets, smart TV, speaker, printer, thumb drive, webcam, headset) and logistics (equipment to accommodate practical training) and (c) capacity development of staff in the institutions selected so staff can provide better training delivery including relevant aspects of ESF/ESSs. The project will also finance scholarships for up to 500 students per year, with priority given to vulnerable, ethnic and female students. Works to upgrade TVET colleges will be limited to expansion, renovation and refurbishment of existing learning facilities attached to TVET colleges. No construction of new facilities will be financed by the project. Given that all Public Disclosure these TVET colleges are located within the existing state land and premises of the MoLSW and MoES responsible for project implementation, no land acquisition and resettlement is anticipated for the project. These land parcels and premises are free of any encumbrances. However, OHS, CHS, resources use, pollution prevention and management are risks that need to be considered. Modernization of the curricula in the selected sector where integrating specific knowledge on environmental related aspects is recommended, particularly on issue related to reduction and control of pollution, protecting human health, efficient use of water, electricity, and raw materials sourcing as well as waste management. The project has established a Component 4 as CERC Zero Component to provide platform for providing immediate response in the event of an eligible crisis or emergency, to re-allocate project funds to support emergency response and recovery. A CERC manual including an addendum to the ESMF will be prepared and applied after the project effectiveness and before implementation of CERC activity or sub-project to be identified during project implementation. D. 2. Borrower’s Institutional Capacity The proposed project will be jointly implemented through existing structures of the main implementing ministries - Ministry of Education and Sports (MoES) and Ministry of Labor and Social Welfare (MoLSW). Component 1 will be implemented by Technical and Vocational Education Department (TVED) within MoES, Component 2 by Skills Development and Employment Department (SDED) within MoLSW, Component 3 collaboratively by TVED and SDED, Component 4 (if needed) will be determined by the Ministry of Finance (MoF) with the World Bank, depending on the nature of the emergency. MoES and MoLSW will assign their own team of staff responsible for E&S implementation and monitoring, and administrative support. The project implementation structures will comprise a mix of government-assigned personnel as well as consultants and technical assistance. In the previous projects, the ability of Jan 07, 2022 Page 6 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) other departments to devote adequate time has depended on: (1) adequate staffing; and (2) multiple demands on their time by their internal ministries and other projects and Development Partners (DPs). In short, strong coordination between the different departments, between DPs, and between the different departments and DPs will be crucial for the project to be implemented successfully. That said, Project Coordination Unit (PCU) will need to be properly staffed to have adequate capacity to implement the proposed project well. None of the above two ministerial departments and TVET colleges have worked with the World Bank. Thus, their ESF implementation capacity for the three implementing agencies will need improvement. For this project, the PCU will be established within TVET of MoES with focal points to be appointed from TVED and SDED of MoLSW. The other Departments under MoES (including Department of Planning and Department of Formal Education) with extensive work experiences with the Bank in previous education projects, including an ongoing “Global Partnership for Education (GPE)III Learning Equity Acceleration” Project (P173407) to which the ESF applies, will share knowledge on project and ESF implementation with these implementing agencies. For the MoLSW, this would be the first project with the World Bank. Thus, the ministry is not familiar with the World Bank’s ESF. However, the Ministry has been working with various donors financed projects for labor and skill development including ADB, ILO, UN agencies, GIZ, LuxDev, JICA, KOICA. Given the comprehensiveness and complexity of the new ESF, a capacity building plan for the IAs will be developed prior to the project effectiveness. A team of qualified ES consultants would be required to support and build in-house capacity of the MoES and MoLSW in ESF implementation, monitoring and reporting. A robust implementation and coordination arrangement among IAs and partnered agencies will be further discussed and firmed up before the effectiveness to ensure that ESF/ESSs Public Disclosure requirements and instruments will be effectively implemented and complied by the project. The project will provide necessary training and support for PCU and implementing departments to undertake their respective responsibilities to PCU will monitor project progress against the agreed performance indicators, ESF actions specified in the ESCP and produce periodic progress reports. II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate Environmental Risk Rating Moderate Type, location, sensitivity and scale of the Project including the physical considerations of the Project. There will be no new construction supported by the project, however, amongst 23 public TVET and 67 private TVET institutes nationwide, the project component 1 and 2 will finance rehabilitation and/or renovation of training facilities (laboratories) within the existing buildings of those TVET colleges still to be determined after appraisal once the COVID-19 control measures and trvel restriction are released. The project will also finance physical refurbishment, equipment, goods, works, and services including farming equipment (tractors, combine or harvester, plows, mowers, wagon, cultivators and raw materials), ICT tools (desktop computers, laptops, software to accommodate learning, data projector, tablets, smart TV, speaker, printer, thumb drive, webcam, headset) and logistics (equipment to accommodate practical training) and capacity development of staff in the selected institutions to provide better training for selected TVET colleges in 17 provinces. These target TVET colleges are located within the city or town with an area defined earlier and less environmental sensitivity where the renovation civil works will be Jan 07, 2022 Page 7 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) limited to an existing building within the selected TVET colleges. Nature and magnitude of the potential environmental risks and impacts, the nature of the potential risks and impacts. Key environmental risks and impacts could be generated from renovation civil work conducted in existing buildings which may be related to safety of workers, teachers, students, parents, and general public as well as local communities who maybe working and living near the project site. Potential increase in traffic, noise, vibration, dust and other air pollution, generation of construction wastes, e-waste could be generated from the ICT equipment, and water pollution during construction and operation of facilities. These risks and impacts will be limited, localized, site specific, mostly temporary, and can be mitigated through the application of environment and social code of practices (ESCOP), close supervision and monitoring of contractors, and ensuring effective traffic management, and consultation with students, teachers, and local communities during preparation and renovation of facilities. In addition, a guideline for development of an e- waste management plan has been provided as part of ESMF to address possible e-waste issue during the construction and future operation of project’s supported facility and equipment. An Environmental and Social Commitment Plan (ESCP) and a Stakeholders Engagement Plan (SEP) have been developed and will be implemented to ensure that impact mitigation measures and ESF instruments are developed and implemented to manage the risks as per the requirements of relevant ESSs. GOL local regulations will also have to be observed during construction and operations of these faculties, particularly those related to waste management and disposal of toxic and/or hazardous materials (such as chemicals, fuels, used oil, etc.) including e-waste that are used during the training in laboratory. Social Risk Rating Moderate Social risk under the project is Moderate. The project is expected to bring about significant social and economic benefits and positive skill development outcomes to the target beneficiaries and the country. The number of direct Public Disclosure beneficiaries is estimated at 550.000 over the project period, including over 1500 teachers, 98,000 students, and 53,000 youth and trainees benefiting each year nationwide and over 14,000 stipendees with priority to be given to female, vulnerable and ethnic beneficiaries. Land acquisition and resettlement will not be required under the project because all works to be financed through the project are limited to upgrading (expanding, renovate and refurbishing) learning facilities within the existing TVET colleges and premises. Activities that require land acquisition and resettlement are included in a negative list of ineligible expenses provided in the Environmental and Social Management Framework (ESMF) and the Project Operation Manual (POM). However, there is a potential for social risks associated with the project activities including: a) Risks of social exclusion of individuals who, because of their particular circumstances, may be disadvantaged or vulnerable. These include the vulnerable (e.g. people with disabilities, from remote locations, young mothers, female young trainees and job seekers) and members of ethnic groups. The risks of excluding vulnerable and ethnic people from all aspects of core project activities and benefits may be associated with possible prejudice and nepotism against the vulnerable and ethnic people in providing access to project activities and benefits including the Skill training programs, Job counselling services, the scholarships, wage subsidy scheme and Employment opportunities. Risks may also involve difference in employment terms and conditions and wage levels that may be applied to different groups of employees by selected private sector firms and employers of core economic sectors engaged in the project implementation and availing of project- financed wage subsidies. The project incorporates measures to ensure an inclusive and transparent approach to address these risks. b) Potential Occupational Health and Safety (OHS) risks under ESS2 in various project places that may occur with project beneficiaries and affected people. These include but should not be limited to: (i) health and safety risk of female and young trainees who will attend skill training courses and stay in dormitories to be provided by the TVET colleges for a certain period of time depending on training courses they choose, (ii) risks anticipated from civil works to upgrade the learning facilities of TVET colleges with workers (both contractor’s workers and Jan 07, 2022 Page 8 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) community workers who may be hired) at the construction sites, (iii) risk may be experienced by employees in their workplace after recruitment depending on nature of jobs and works they apply for. These risks may be managed through OHS Measures (OHSPM) and Labor Management Procedures (LMP) designed and applied to manage the OHS risks, and c) Community Health and Safety (CHS) risks (ESS4) are mainly associated with the civil work and and potential labor influx including communicable diseases (waste, water and air borne diseases, COVID-19 outbreak) and those related to daily construction issues such as traffic safety, dust, noises and disturbance. These risks and impacts will be limited, site specific and manageable given the works focus on upgrading and could be addressed through an Environmental and Social Code of Practice (ESCOP) which incorporates Environmental Code of Practice (ECOP) and Social Code of Conduct (CoC). 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: The proposed project is required to assess potential ES risks and impacts and identify appropriate measures to address and manage such risks in accordance with relevant ESSs. Potential ES risks expected from the project activities are described below: a) Risks of exclusion from project benefits that the project could have on the vulnerable and ethnic people (EP) Public Disclosure including women and people with disability. These risks are associated with prejudices and nepotism against the vulnerable and ethnic people in providing access to project benefits including skills training programs, job opportunities and access to labor markets. Risk may also involve differences in employment terms and conditions and wage levels as well as the unequal access to scholarship that will be applied and to be paid to different groups of employees in favor of majority group of Lao citizens and those well-connected with TVET and counselling colleges and employers (private sector firms). Inclusive measures, as part of project design will be developed and applied to manage potential risks of excluding the vulnerable and ethnic groups including women and people with disability. These measures cover aspects of trainee and employees selection criteria and process and are summarized in a checklist with clear implementation and monitoring arrangements including agencies designated to be responsible for each measure/step. In addition, a Labor Management Procedures (LMP) hasbeen prepared and applied to address and manage such risks and issues associated with discrimination in workplaces availing of project financed wage subsidies. The LMP will be introduced and adopted by employers availing of these subsidies, transparent and competitive process of worker selection and staff employment; c) Potential health and safety risks and impacts on trainees and job seekers or employees who may have to attend skill training in TVET colleges and stay in dormitories away from their home villages and their families include communicable diseases, workplace safety and SEA/SH issues which is assessed to be low. A Health and Safety Measures covering Occupation Health and Safety Measures (OHSM) and Community Health and Safety Plan or Measures (CHSM) has been prepared and adopted by the concerned project address such risks and impacts as per the ESS2 and ESS4 requirements. The OHS and CHS risks and mitigation measures relating to project workers are also reflected in the Labor Management Procedures (LMP) prepared for the project. Training on health and safety measures to address OHSM and CHS risks will be provided for them to raise their awareness and their compliance will Jan 07, 2022 Page 9 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) monitored by the project IAs and TVET colleges. Involvement of security personnel and security force in project implementation specifically in all TVET colleges is not anticipated. d) Since civil works to upgrade training and learning facilities will be limited to renovation of existing facilities located within the TVET colleges be selected, land acquisition and resettlement are not envisaged for this activity. However, some potential OHS and CHS risks and impacts associated with the civil works are envisaged on workers and the local communities surrounding the work sites. These include risks associated with potential labor influx such as communicable and infectious diseases (waste, water and air born diseases) and construction related issues (road safety issue, dust and noises and disturbance) due to transport of construction material and daily works. Potential SEA/SH and GBV risks is assessed to be low. The CHSM and an Environmental and Social Code of Practice (ESCOP) which integrates a site-specific environment code of practice (ECOP), Code of Conduct (CoC) and COVID-19 prevention protocol has been prepared and provided in the ESMF to manage such risks during the works. e) OHS risk may occur with teachers and students during skill training and practical sessions which involve the operation of training facilities, particularly laboratory, machinery, electricity shock, exposure to chemical and noise pollutants; generation and management of solid waste including hazardous and nonhazardous wastes. Measures relating to OHS will be applied to the project taking into account the General EHSGs and, as appropriate, the industry specific EHSGs and other GIIP. The OHS is set out in part of the ESCP. As project supports to enhance technical capacity for teachers and students, it is an opportunity to promote environmental management knowledge, particularly on waste management, occupational health, life and fire safety, Public Disclosure energy efficiency and cleaner production. Trainings on these specific skills or subject can be included during the detail design of training program to be supported under project Components 1. As a good environmental management practice, the update curriculum and training program will intergrade knowledge on environmental management, waste including e-waste and other pollution management, and water/energy efficiency can help to improve environmental management capacity of students to be ready for existing and future labor markets. Given that target beneficiaries and TVET colleges located in various provinces of Laos, labor markets and activities are still to be selected and determined during implementation, the following ES instruments have been prepared under the project: a) An ESCP has been prepared to ensure that the required materials measures and ESF instruments are in place as part of project design and implemented throughout the project period to address and mitigate risks identified under relevant ESSs. b) An Environmental and Social Management Framework (ESMF) has been prepared to manage and address the above discussed ES risks and relevant ESSs’ requirements. The ESMF provides guidance and process of identifying risks and measures or tools to be adopted to address the risks associated with specific project activities and works to be determined either at appraisal or before project implementation. The ESMF includes an environmental and social screening procedures and all the above listed risk management tools (inclusive measures, LMP, OHSM, CHSM and Environmental and Social Code of Practice to be applied to the upgrading works) into a single document . The ESMF Jan 07, 2022 Page 10 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) includes measures and steps to manage potential risks of excluding the vulnerable and ethnic groups including women and people with disabilities, and these are summarized in a checklist with clear implementation and monitoring arrangements including agencies designated to be responsible for each measure/step. It also describes stakeholder consultation to be conducted, implementation and monitoring arrangement and Grievance Redress Mechanisms (GRMs) to be set up and tailored for specific project stakeholders, activities and locations. The ESMF is required to be cleared by the Bank and disclosed prior to appraisal. c) A Stakeholder Engagement Plan (SEP) has been prepared and disclosed prior to appraisal and will apply for the entire project. Its objective is to ensure that beneficiaries including the vulnerable and ethnic trainees, job seekers and employees and affected communities has been and will be consulted and engaged in project design and implementation in compliance with ESS10 of the ESF. The SEP includes a GRM for each of the target direct beneficiaries and affected people (trainees, job seekers and employees), and project workers. ESS10 Stakeholder Engagement and Information Disclosure TThe project involves various groups of stakeholders from the national to village levels. These include, but should not be limited to different groups of laborers, job seekers, trainees and young graduates, their families and communities, private sectors, government line agencies, mass organizations, Civil Society Organizations (CSOs) and Development Partners (DPs). The project stakeholders and the level of their engagement have been pre-identified and analyzed by the client. Public Disclosure All project related stakeholders were consulted on Project activities, potential risks and impacts and proposed mitigation measures. Gender inclusivity was e factored into all consultations including engagement with organizations representing women’s interests such as the Lao Women Union (LWU). Stakeholedrs consulted also included representatives of vulnerable and ethnic people who will be directly and indirectly affected by project’s activities, officials of concerned government ministries and their TVET colleges at national and provincial levels such as the MoES and the MoLSW which are main ministries engaged in skills development in Lao PDR with the former responsible for a larger share of the country’s training provision. All pre-employment TVET (public and private) is administered by MoES, while further training of the workforce is the responsibility of MoLSW. Additionally, other ministries undertake some skills training, as do mass organizations, such as Lao Women’s Union. The National TVET and Skills Development Council (NTSDC) under MoES and the 14 Trade Working Groups are meant to play a coordinating role between MoES and MoLSW as well as the private sector. The Lao National Chamber of Commerce and Industry, representing the private sector, has also been engaged in the skills development agenda. Finally, multiple development partners (DP) including ADB, UN agencies, ILO, JICA, KOICA, GIZ, LuxDev and INGOs are active in this arena to support skill development and employment agenda in Laos. Measures and steps to manage potential risks of excluding the vulnerable and ethnic groups including women and people with disability are provided in the ESMF and SEP and summarized in a checklist with clear implementation and monitoring arrangement and agencies assigned to be responsible for each measure/step. As part of inclusive process, the government mass organizations, Lao Women Union and Lao Front for National Development which have local presence nationwide from village up to the central levels can be engaged in gender and ethnic sensitive awareness raising and in providing counselling services for ethnic and female trainees and jobseekers participating in Jan 07, 2022 Page 11 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) the project activities. Specialized CSOs, both local NGOs (commonly known as Non-profit Associations (NPAs) and international NGOs working on gender and women’s advocacy in the country will be engaged in project implementation to support the IAs to generate demand and promote women and ethnic groups participation in the project activities. All consultations follow national protocols and World Bank’s guidelines for prevention of transmission of COVID-19 virus and other infectious diseases. A Stakeholder Engagement Plan (SEP) has been prepared to: • Ensure that beneficiaries, affected people especially vulnerable and ethnic people and agencies will be engaged and consulted, especially on project design options; • Identify all project stakeholders including their priorities and concerns, and ensure the project has ways to incorporate these; • Identify strategies for information sharing and communication to stakeholders, including project information on social risks and impacts, as well as consultation of stakeholders in ways that are meaningful and accessible throughout the project cycle; • Establish an accessible, culturally appropriate, and responsive grievance mechanism tailored to different groups of project beneficiates and affected people and places. These include GRM tailored for trainees and job seekers to be established at the TVET colleges, GRM for employees in private sector firms/workplace; • Identify inclusive measures including selection criteria and process of engaging target beneficiaries (vulnerable and ethnic trainees, jobseekers and employee)s in project activities implementation, • develop a strategy for stakeholder participation in the project monitoring of project impacts, and Public Disclosure • Provide measures and steps to ensure inclusion of the vulnerable and ethnic groups to developed and summarize in a checklist with clear implementation and monitoring arrangements including agencies assigned to be responsible for each measure/step and timeframes. The SEP has been consulted, completed and disclosed prior to project appraisal. 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 The proposed project will support students/trainees and job seekers to attend skill training in selected TVET colleges and facilitate their transition to labor markets by providing them with counselling services on job opportunities and linking them with potential employers after graduation. These include firms and entrepreneurs of core economic sectors to be selected and engaged in the project, who may avail of project-financed wage subsidies offered as an incentive to recruit students/trainees and job seekers. The project will also finance small scale civil work to upgrade training facilities under TVET colleges which will be mostly undertaken by local contractors. These project activities could potentially generate labor and working condition related risks including: Jan 07, 2022 Page 12 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) (i) Risks of discrimination and nepotism against the poor, women, vulnerable and ethnic people in providing access to labor markets and job opportunities expected to be offered by private firms and entrepreneurs of core economic sectors to be selected. Risk may involve difference in employment terms and conditions and scales of labor wages or salaries applied to different groups of employees and labors by such employers because the vulnerable and ethnic employees often lack legal awareness, social protection as well as negotiation skills. A Labor Management Procedures (LMP) weree prepared and adopted under the project to address and manage such risks and issues associated with discrimination and inequality in worker employment terms and working conditions against the vulnerable and ethnic employees in their workplaces. The LMP will be adopted by the employers availing of project financed wage subsidies to ensure fair, transparent and competitive process of labor recruitment and employment. The LMP is included in the ESMF as annex. (ii) Potential OHS risks and accidents that may happen with trainees during skill training in class rooms and practical sessions in learning facilities or workshops (operating machineries, electric apparatus and handling with hazardous and non-hazardous pollutants) provided by the TVET colleges. An Occupational Health and Safety Measures (OHSM) including safety at work instructions and protocol to prevent and address COVID-19 spread and incidents are designed to be applied by the TVET colleges to manage such risks. The participating TVET colleges would be required to provide trainees with OHSM training and necessary Personal Protected Equipment (PPE) including safety gloves, helmets and eye glasses, and basic hygiene and health care facilities such as hand washing and cleaning facilities with soaps, alcohol gels, thermometers and first aid kits. Public Disclosure (iii) In addition, OHS risks and incidents could also occur with workers (both community and contractor’s workers) to be hired for civil works to upgrade about 10-12 learning facilities in the TVET colleges to be confirmed after appraisal. Worker health and safety measures have been developed and incorporated into an Environmental and Social Code of Practice (ESCOP). The ESCOP will be adopted by work subprojects and contractors to upgrade the learning facilities of TVET colleges as a site specific instrument to manage such risks as well as other environmental and social risks and impacts anticipated from civil works and labor influx. COVID-19 protocol will be also required to be adopted by contractors and their workers to prevent and address COVID-19 spread and incidents in the construction and workers’ camp sites as well as in surrounding local communities. ESS3 Resource Efficiency and Pollution Prevention and Management The project is expected to support and benefit all the 23 public TVET and 67 private TVET institutes nationwide, however, the exact number of TVETs to receive support for renovation works will only be identified during project implementation. The project will finance renovation civil work to rehabilitate and upgrade learning and training facilities where the following potential risks defined under ESS3 will have to be assessed, monitored and addressed. Energy Use: The efficient use of energy is an important, especially during the operation of learning and training center. As part contribution to the sustainable development, VTETs to consider the way on efficient use of energy by adopting measures specified in the World Bank Group Environmental Health and Safety Guidelines (EHSGs) to optimize energy usage to the extent technically and financially feasible. Jan 07, 2022 Page 13 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) Air emissions: During the rehabilitation phase, air emissions will include exhaust from construction vehicles and machinery, and fugitive dust generated by civil work’s activities. Those most likely to be affected are people living within the proximity of the sites, teachers and students, and workers. The implementation of mitigation measures such as dust suppression will be applied to minimize the impact of air emissions during rehabilitation civil works, and residual impacts will be limited in scope and duration. Noise: During the rehabilitation phase, noise may likely be generated from the use of construction machinery, vehicle movements and construction activities. The relatively short-term and small-scale nature of the works suggest that noise levels will not be excessive or cause long-term nuisances. The construction works will however, present short- term nuisance to the public, teachers and trainees, and communities adjacent to some of the VTET. Possible solutions include restricting the hours of operation for civil works during the non-working hour. Waste management: Renovation activities will generate solid waste which will primarily include construction waste and possible hazardous waste such as asbestos containing materials (ACM), hazardous equipment (from the laboratories) and hydrocarbon oils from construction machinery and vehicles. As ACM is not controlled and widely used in Laos, especially in old buildings, the ESCOP includes related screening and mitigation measures in the case of asbestos findings during civil works. The waste generated by this type of civil works whose quantity is not anticipated to be significant and will be disposed at designated sites in a manner that is safe for human health and environment. In addition, the project will finance ICT tool include desktop computers, laptops, software to accommodate learning, data projector, tablets, smart TV, speaker, printer, thumb drive, webcam, headset etc. Guideline for development of an e-waste management plan has been provided as part of ESMF to address possible e-waste issue during the Public Disclosure construction and future operation of project’s supported facility and equipment. Water use: water use for the civil work will be limited and will not cause an issue during the operation of training facilities. Impact mitigation measures addressing requirement under ESS3 are established as part of ESCOP as previously assessed under ESS1 and will be implemented by the VTET colleges. ESS4 Community Health and Safety There are potential risks relevant to ESS4 anticipated from project activities mainly under Component 1. These include: (i) health and safety risks of trainees and job seekers that may be occur during training activities and in dormitories including risk of SEA/SH, GBV (which is still to be assessed after the PCN meeting) and communicable diseases (waste, water and air borne diseases, ongoing COVID-19 outbreak). Community Health and Safety Measures (CHSPM) has been prepared to be adopted by the TVET colleges to address such risks and impacts as per the ESS4 requirements. Training on CHSM will be provided for the center's staff and trainees to raise their awareness and ensure their compliance with the CHSM. Jan 07, 2022 Page 14 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) Engagement of security personnel and security force in project implementation particularly in the TVET colleges and trainees' dormitories is not anticipated at the time of appraisal. The PCU will inform the WB if security or military personnel would need to be involved in the future, such as for provision of security to The TVET colleges/facilities and student dormitories. If security or military personnel is engaged, the relevant provision under ESS4 of ESCP will be strictly followed.. Potential CHS risks and impacts are anticipated from the civil works to expand and rehabilitate learning facilities in TVET colleges on the local communities surrounding the work sub-projects sites. These include risk associated with potential labor influx including communicable and infectious diseases, COVID-19, and work related impacts such as road safety issue, dust, noises, disturbance (both physical and mental) due to transport of construction materials, machinery operations and daily construction activities. An assessment of Risks of SEA/SH conducted during appraisal suggests that the risk is low in all project locations including a) the training colleges (for trainees), b) workplaces (jobseekers and employees) and c) construction sites with local communities surrounding (for contractor’s workers and affected communities). The CHSPM and an Environmental and Social Code of Practice (ESCOP) which integrates a site-specific EMP and Code of Conduct for addressing potential to be adopted to manage such risks. Both CHSM and ESCOP are provided in the ESMF as annexes to be prepared and disclosed prior to appraisal. Public Disclosure ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement The project will not finance activities and works that require resettlement. Works to be financed under Component 1 will be limited to renovation and expansion of existing learning facilities and buildings located within the same plots of land and premises belonging to the MoES and MLSW which are free of all encumbrances. Thus, land acquisition and resettlement is not envisaged under these works. Works and activities that require resettlement and land outside the existing TVET areas are included in a negative list of ineligible expenses to be applied under the project. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources ESS 6 is not currently relevant as all project activities are planned to be carried out mainly within the existing TVETs and workplaces and any activities with non-negligible impacts on biodiversity or living natural resources will be screened out using the ESMF. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities Ethnic people defined as Indigenous People under ESS7 including ethnic trainees, job seekers and employees are expected to benefit and to be directly and indirectly affected by the project’s activities. Various TEVT colleges to be Jan 07, 2022 Page 15 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) selected to participate in the project are located in different provinces where ethnic trainees, graduates, job seekers employees will attend the skill training programs and use the counselling services for information on job opportunities available and to participate in labor markets. A number of ethnic beneficiaries expected to involve and benefit from the project activities, will be determined during project implementation. There are potential risks that the ethnic people particularly women and those who are from poor households in rural remote villages could be excluded or left behind from the project benefits and activities because: Firstly, risk of discrimination and nepotism against the ethnic trainees and job seekers in providing access to the scholarships to be financed by the proejct for up to 500 students per year, skill training programs, counselling services, lodging facilities, wage subsidies and access to labor markets. The project will ensure that these ethnic trainees will be well-informed and consulted on the these project activities support which will be provided by the project and TVET colleges and that fair and transparent mechanism is in place to ensure equal access and benefi, which t from the project investments in a culturally appropriate manner. These material measures are provided in the ESMF, SEP and ESCP to ensure inclusion of these ethnic beneficiaries in the project activities. A Labor Management Procedures (LMP) are designed to applied to address and manage such risks and issues associated with working conditions, discrimination and inequality in workplaces benefitting from project financed wage subsidies. In practice, this mean the LMP will be also introduced and adopted by the private sector employees availing of these subsidies as a whole to ensure fair, transparent and competitive process of worker selection and employment. Public Disclosure Secondly, OHS and CHS risks and incidents relevant to ESS2 and ESS4 may occur with ethnic trainees and job seekers in skill training, dormitories and in workplaces if employed. These may include communicable diseases and accidents that may happen during practical training sessions (handling with machines, electric apparatus, hazardous and non- hazardous pollutants). OHS and CHS measures will be adopted to mitigate such risks and adverse impacts on the ethnic trainees and employees. Potential risks of SEA/SH and GBV on the ethnic group of beneficiaries associated with project activities is assessed to be Low. However, the CoC is prepared as part of ESCOP to be applied to prevent and manage potential risk of SEA/SH and GBV under the project. The ESMF and SEP to be prepared and applied under the project together include measures to enhance inclusion of ethnic groups consistent with ESS7. This SEP provides inclusive, ethnic and gender sensitive approach to consulting, engaging and enabling them to participate in the project activities. This inclusive approach includes meaningful consultation through ethnic sensitive counselling services, information disclosure and transparent process of selecting trainees and employees to participate in skill training program and and in labor markets using the pre-defined trainee and employee-selection criteria. Special considerations and priority will be given to the vulnerable and ethnic people in the selection criteria and actual selection process. The SEP also provides an accessible and culturally appropriate, grievance redress mechanism (GRM) tailored for the ethnic groups of trainees and jobseekers and employees such as by engaging their ethnic and women's representatives and organizations like NFND and LWU as well as CSOs in GRM as well as in the Jan 07, 2022 Page 16 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) consultation, counselling services and the process of selecting trainees and recruiting employees in private sector firms and entrepreneurs as required under ESS2, ESS7 and ESS10. ESMF, SEP and ESCP also describe implementation, coordination and monitoring arrangements to be in place to ensure that these inclusive measures and other ESSs’ requirements provided are affectively applied, monitored through out the project lifetime. ESS8 Cultural Heritage ESS8 is not currently relevant to the project. The civil works to upgrade the learning facilities will take place within the existing buildings of TVET colleges and premises to be selected. Moreover, the project IAs and TVET colleges will mainly and directly interact and provide direct support to the target individual beneficiaries (trainees, labors, job seekers, employees and private sector entrepreneurs/employers). Thus, potential risk and impacts on both tangible and intangible cultural heritage risks are not envisaged under the project. However, a Chance Find Procedure is provided in the ESMF to be applied under the civil work to upgrade TVET facilities for the purpose of precaution. ESS9 Financial Intermediaries The project will provide direct financial support to the client and not through a financial institution or intermediaries. Public Disclosure C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No B.3. Reliance on Borrower’s policy, legal and institutional framework, relevant to the Project risks and impacts Is this project being prepared for use of Borrower Framework? No Areas where “Use of Borrower Framework” is being considered: The Borrower's E&S Framework is not proposed to be relied on for the Project, in whole or in part. However, relevant provisions of national framework, if consistent with applicable ESSs will be recognized in ESF documents. IV. CONTACT POINTS Jan 07, 2022 Page 17 of 18 The World Bank Lao PDR Priority Skills for Growth (P172774) World Bank Contact: Tara Beteille Title: Senior Economist, Program Leader Telephone No: 578-46223 Email: tbeteille@worldbank.org Contact: Francesca Lamanna Title: Senior Economist Telephone No: 5778+8397 / 66-2-6868397 Email: flamanna@worldbank.org Borrower/Client/Recipient Borrower: Ministry of Finance Implementing Agency(ies) Implementing Agency: Ministry of Education and Sports Implementing Agency: Ministry of Labor and Social Welfare V. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Public Disclosure Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VI. APPROVAL Task Team Leader(s): Francesca Lamanna, Tara Beteille Practice Manager (ENR/Social) Susan S. Shen Cleared on 10-Nov-2021 at 16:18:36 GMT-05:00 Jan 07, 2022 Page 18 of 18