THE WORLD BANK ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) - OCTOBER 2018 Ministry of Finance Strengthening Governance in Mongolia P168248 ENVIRONMENTAL and SOCIAL COMMITMENT PLAN (ESCP) February 12, 2019 1|Page THE WORLD BANK ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) - OCTOBER 2018 Ministry of Finance Strengthening Governance in Mongolia ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Ministry of Finance (MoF) of Mongolia is planning to implement the EU-funded Strengthening Governance in Mongolia Project (the Project). The International Bank for Reconstruction and Development/International Development Association hereinafter the Bank/the Association has agreed to provide financing for the Project. 2. The MoF will implement material measures and actions so that the Project is implemented in accordance with the World Bank Environmental and Social Standards (ESSs). This Environmental and Social Commitment Plan (ESCP) sets out a summary of the material measures and actions. 3. Where the ESCP refers to specific plans or other documents, whether they have already been prepared or are to be developed, the ESCP requires compliance with all provisions of such plans or other documents. The ESCP requires compliance with the provisions set out in the Stakeholder Engagement Plan that has been developed for the Project. 4. The table below summarizes the material measures and actions that are required as well as the timing of the material measures and actions. The MoF is responsible for compliance with all requirements of the ESCP even when implementation of specific measures and actions is conducted by the Ministry. 5. Implementation of the material measures and actions set out in this ESCP will be monitored and reported to the Bank/Association by the MoF as required by the ESCP and the conditions of the legal agreement, and the Bank/Association will monitor and assess progress and completion of the material measures and actions throughout implementation of the Project. 6. As agreed by the Bank/Association and the MoF, this ESCP may be revised from time to time during Project implementation, to reflect adaptive management of Project changes and unforeseen circumstances or in response to assessment of Project performance conducted under the ESCP itself. In such circumstances, the MoF will agree to the changes with the Bank/Association and will update the ESCP to reflect such changes. Agreement on changes to the ESCP will be documented through the exchange of letters signed between the Bank/Association and the MoF. The MoF will promptly disclose the updated ESCP. Depending on the project, the ESCP may also specify the funding necessary for completion of a measure or action. 7. Where Project changes, unforeseen circumstances, or Project performance result in changes to the risks and impacts during Project implementation, the MoF shall provide additional funds, if needed, to implement actions and measures to address such risks and impacts. 2|Page THE WORLD BANK ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP): VERSION 1.0 - OCTOBER 2018 Strengthening Governance in Mongolia ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN DATE Summary of the Material Measures and Actions to Mitigate the Timeframe Responsibility / Date of Completion Project’s Potential Environmental and Social Risks and Impacts Authority and Resources/Funding Committed ESCP Monitoring and Reporting REGULAR REPORTING: Monitoring reports on the Once a year during MoF / Project December 2021 implementation of the ESCP will be prepared and submitted on a the project lifetime Implementation Unit regular basis as part of the project progress report. (PIU) INCIDENTS AND ACCIDENTS NOTIFICATION: This is not applicable Promptly after taking MoF/PIU December 2021 to the project. If necessary, safety and security policy will be notice of the incident placed, and measures will be taken accordingly. or accident SUMMARY ASSESSMENT ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE: Identify a qualified staff member Within three months MoF/PIU May 2019 within the PIU or MoF to support, on a needs basis, management of the grant counter- of E&S risks for the Project. signature 1.2 ENVIRONMENTAL AND SOCIAL ASSESSMENT: Not applicable based on the ESRS, which was cleared on January 2019 by OPSES. ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT PROCEDURES: The MoF/PIU will: Project lifetime Project In all contracts. • Establish employment contract in accordance with Implementation Unit requirement of national law; • Project worker(s) will be provided with information and documentation that sets out their rights under national labor law and employment law; 3|Page THE WORLD BANK ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP): VERSION 1.0 - OCTOBER 2018 Strengthening Governance in Mongolia ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN DATE Summary of the Material Measures and Actions to Mitigate the Timeframe Responsibility / Date of Completion Project’s Potential Environmental and Social Risks and Impacts Authority and Resources/Funding Committed • To ensure that each project worker will be protected from any kind of discrimination according to provision set by national laws including Employment, Social Security, Income Tax and Gender Equality. 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS: Develop and Project lifetime MoF September 2019 maintain a grievance mechanism for Project workers. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 SEP PREPARATION: The project will engage stakeholders The SEP will be MoF with the support Before appraisal/approval– particularly the civil servants of the beneficiary units within the finalized and made of the WB March 5, 2019 MoF. The SEP will define the process and mechanism to inclusively publicly available and effectively engage all related stakeholders (direct and indirect) before the project during the project implementation period. appraisal 10.2 SEP IMPLEMENTATION: The MoF will ensure the implementation Throughout Project MoF/PIU December 2021 of SEP throughout the project lifetime. The implementation report implementation shall be prepared and submitted to the World Bank on a semi- annual basis as part of the project progress report. 10.3 PROJECT GRIEVANCE MECHANISM: Communities and individuals Throughout Project PIU/MoF/WB September 2019 who believe that they are adversely affected by the World Bank implementation (WB) supported project may submit complaints to project-level grievance redress mechanism. Capacity Support Specify Training to be provided Specify Targeted Groups and Specify Training Completed Timeframe for Delivery As example, training may be required in: • Staff of respective 1. Stakeholder consultation on draft policy 4|Page THE WORLD BANK ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP): VERSION 1.0 - OCTOBER 2018 Strengthening Governance in Mongolia ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN DATE Summary of the Material Measures and Actions to Mitigate the Timeframe Responsibility / Date of Completion Project’s Potential Environmental and Social Risks and Impacts Authority and Resources/Funding Committed • stakeholder mapping and engagement departments of the MoF documents • specific aspects of environmental and social September 2019. 2. Response matrixes after consultation assessment 3. Effective communicate with stakeholders 5|Page