THE WORLD BANK - ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) MINISTRY OF FINANCE OF THE REPUBLIC OF UZBEKISTAN Project: Uzbekistan Financial Sector Reform Project (P173619) [Draft] ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) February 28, 2022 1|Page THE WORLD BANK - ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Republic of Uzbekistan will implement the Uzbekistan Financial Sector Reform Project (the Project), with the involvement of the Ministry of Finance (MOF) of the Republic of Uzbekistan as set out in the Financing agreement. The International Bank for Reconstruction and Development/International Development Association has agreed to provide financing (P173619) for the Project, as set out in the referred agreement. 2. The MOF of the Republic of Uzbekistan shall ensure that the Project is carried out in accordance with the Environmental and Social Standards (ESSs) and this Environmental and Social Commitment Plan (ESCP), in a manner acceptable to the World Bank. The ESCP is a part of the Financing Agreement. Unless otherwise defined in this ESCP, capitalized terms used in this ESCP have the meanings ascribed to them in the referred agreement(s). 3. Without limitation to the foregoing, this ESCP sets out material measures and actions that the MOF of the Republic of Uzbekistan shall carry out or cause to be carried out, including, as applicable, the timeframes of the actions and measures, institutional, staffing, training, monitoring, and reporting arrangements, and grievance management. The ESCP also sets out the environmental and social (E&S) instruments that shall be adopted and implemented under the Project, all of which shall be subject to prior consultation and disclosure, consistent with the ESS, and in form and substance, and in a manner acceptable to the World Bank. Once adopted, said E&S instruments may be revised from time to time with prior written agreement by World Bank. 4. As agreed by the World Bank and the MOF of the Republic of Uzbekistan, 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 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 and MoF. The Ministry of Finance of the Republic of Uzbekistan will promptly disclose the updated ESCP. 2|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – [name] Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY MONITORING AND REPORTING A REGULAR REPORTING First report to be submitted after Ministry of Finance of the Prepare and submit to the World Bank regular monitoring reports on the environmental, three months of the Project Republic of Uzbekistan social, health and safety (ESHS) performance of the Project, including but not limited to effectiveness date then every six (MoF), the implementation of the ESCP, status of preparation and implementation of E&S months afterwards throughout Project Implementation instruments required under the ESCP, stakeholder engagement activities, and Project implementation, as part of Unit (PIU) functioning of the grievance mechanism. Reporting shall also cover on compliance of the overall project progress reports. project on SEP, LMP, E-Waste Management, Environmental and Social Framework (ESMF) Checklist. Reporting back to stakeholders shall be carried out annually as prescribed in the SEP. B INCIDENTS AND ACCIDENTS Notify the World Bank of any incident MoF/ PIU Promptly notify the World Bank of any incident or accident related to the Project which or accident within 48 hours after has, or is likely to have, a significant adverse effect on the environment, the affected becoming aware of the incident or communities, the public or workers, including, inter alia, cases of sexual exploitation and accident. abuse (SEA), sexual harassment (SH), and accidents that result in death, serious or multiple injury specific to the project activities. Provide sufficient detail regarding the Provide, subsequent detail report to the scope, severity, and possible causes of the incident or accident, indicating immediate World Bank on the incident within three measures taken or that are planned to be taken to address it, and any information working days of the initial provided by any contractor and/or supervising firm, as appropriate. communication and reporting of the incident. Subsequently, at the World Bank’s request, prepare a report on the incident or accident and propose ant measures to address it and prevent its recurrence. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE One specialist responsible for MoF/ PIU Maintain the current PIU established under the Institutional Capacity Building Project Environmental and Social oversight will within the Ministry of Finance of the Republic of Uzbekistan with qualified staff and be recruited prior to commencement of resources to support the management of E&S risks and impacts of the Project. project activity. The PIU is responsible for ensuring full compliance with the ESF and relevant Ensure staff responsible for instruments. A dedicated Environmental and Social Safeguards Specialist, who will be environment and social risks are vetted hired under the existing PIU structure, must work in coordination with the Bank team to and, if necessary, trained by the Bank ensure ESF compliance including implementation of the SEP, LMP, E-Waste Team no later than 60 days after Project Management, and ESMF Checklist. He/she will also oversee and monitor suppliers’ effectiveness. compliance with relevant E&S requirements. Thereafter maintained throughout Project implementation. 3|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – [name] Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 1.2 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK (ESMF) Adopt the ESMF checklist prior to MoF/ PIU completion of the project appraisal, and Adopt and implement an Environmental and Social Management Framework checklist thereafter implement the ESMF (ESMF checklist), acceptable to the Bank, which specifies rules and procedures for the checklist throughout Project Component 1.3 of the Project, consistent with the relevant ESSs. implementation. 1.3 ELECTRONIC WASTE MANAGEMENT PLAN Adopt the EWMP prior to completion of MoF/ PIU Adopt and implement a Project Electronic Waste Management Plan (EWMP), which the project appraisal, and thereafter specifies rules and procedures, to manage hazardous and non-hazardous wastes as a implement the EWMP throughout result of replacement and disposal of electronic equipment, consistent with ESS3. Project implementation. 1.4 MANAGEMENT OF CONTRACTORS As part of the preparation of MoF/ PIU Incorporate the relevant aspects of the ESCP, including, inter alia, the relevant E&S procurement documents and respective instruments, the Labor Management Procedures, and code of conduct, into the ESHS contracts. specifications of the procurement documents and contracts with contractors and Supervise contractors throughout supervising firms. Thereafter ensure that the contractors and supervising firms comply Project implementation. and cause subcontractors to comply with the ESHS specifications of their respective contracts. Adopt the ESMP checklist before launching the bidding process for the Contractors Contractors would need to adopt the Environmental and Social Management Plan respective civil works or equipment (ESMP) checklist if applicable as set out in the ESMF checklist. The proposed activities installation works that requires the described in the exclusion list set out in the ESMF checklist shall be ineligible to receive adoption of such ESMP checklist. Once financing under the Project. Contractors should comply with the ESMF checklist and adopted, implement the respective EWMP as appropriate. ESMP throughout Project implementation. ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT PROCEDURES LMP shall be prepared, consulted upon, MoF/ PIU Adopt and implement the Labor Management Procedures (LMP) for the Project, and disclosed prior to the completion of including, inter alia, provisions on working conditions, management of workers the project appraisal. relationships, occupational health, and safety (including personal protective equipment, and emergency preparedness and response), code of conduct (including relating to SEA Measures concerning suppliers shall be and SH), forced labor, child labor, grievance arrangements for Project workers, and adopted before launching the applicable requirements for contractors, subcontractors, and supervising firms. procurement process for the relevant Project activities and implemented thereafter throughout the relevant 4|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – [name] Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY Project activities. All actions under ESS2 shall be implemented throughout Project implementation. 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS The GM for project workers will be MoF/ PIU Establish and operate a grievance mechanism (GM) for Project workers, as described in established prior to completion of the LMP and consistent with ESS2. project appraisal and maintained throughout project implementation. ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 3.1 Relevant aspects of ESS 3 shall be considered, as needed, under actions 1.2, 1.3, and 1.4 Throughout project life. PIU above, including, inter alia, measures to manage electronic wastes. ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 Relevant aspects of ESS 4 fall under actions 1.2, 1.3, 1.4, and 2.1, above, including: Throughout project life. PIU minimizing exposure to hazards; and preventing/responding to sexual exploitation, abuse, or harassment. ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT ESS 5 is not relevant for the project ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES ESS 6 is not relevant for the project ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES ESS 7 is not relevant for the project ESS 8: CULTURAL HERITAGE ESS 8 is not relevant for the project ESS 9: FINANCIAL INTERMEDIARIES ESS 9 is not relevant for the project ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PLAN PREPARATION AND IMPLEMENTATION SEP finalized, consulted on, and MoF/ PIU Adopt and implement a Stakeholder Engagement Plan (SEP) for the Project, consistent disclosed prior to the completion of with ESS10, which shall include measures to, inter alia, provide stakeholders with timely, project appraisal. relevant, understandable, and accessible information, and consult with them in a culturally appropriate manner, which is free of manipulation, interference, coercion, discrimination, and intimidation. 10.2 PROJECT GRIEVANCE MECHANISM GM is established by MoF/PMU prior MoF/ PIU to commencement of project activities 5|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – [name] Project MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY Establish, publicize, maintain, and operate an accessible grievance mechanism, to and thereafter maintained and receive and facilitate resolution of concerns and grievances in relation to the Project, operated throughout Project promptly and effectively, in a transparent manner that is culturally appropriate and implementation. readily accessible to all Project-affected parties, at no cost and without retribution, including concerns and grievances filed anonymously, in a manner consistent with ESS10. The grievance mechanism shall be equipped to receive, register, and facilitate the resolution of SEA/SH complaints, including through the referral of survivors to relevant gender-based violence service providers, all in a safe, confidential, and survivor-centered manner. CAPACITY SUPPORT CS1 Provide training to PMU staff and the project teams on: Throughout Project implementation. MoF/ PIU 1.Stakeholder mapping and engagement and information disclosure; 2.Handling workers’ and beneficiaries’ Grievances; 3.Prevention and response to potential cases of GBV/SEA/SH and application of Codes of Conduct; 4.ESMF checklist and E-Waste Management; 6|Page