Partnership for Market Implementation (PMI) Project (P177785) Ministry of Ecology, Geology and Natural Resources of the Republic of Kazakhstan Partnership for Market Implementation (PMI) Project (P177785) ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) June 29, 2022 1|Page Partnership for Market Implementation (PMI) Project (P177785) ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Republic of Kazakhstan will implement the Partnership for Market Implementation Project, with the involvement of the Ministry of Ecology Geology, and Neutral Resources (MEGNR), as set out in the Grant Agreement. The International Bank for Reconstruction and Development/International Development Association has agreed to provide financing for the project, as set out in the referred agreements(s). 2. The MEGNR of the Republic of Kazakhstan 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 Grant 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 MEGNR of the Republic of Kazakhstan 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 inform 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 the World Bank]. 4. As agreed by the World Bank and the MEGNR of the Republic of Kazakhstan, this ESCP will be revised from time to time if necessary, during Project implementation, to reflect adaptive management of Project changes and unforeseen circumstances or in response to Project performance. In such circumstances, the Republic of Kazakhstan through MEGNR and the World Bank agree to update the ESCP to reflect these changes through an exchange of letters signed between the World Bank and the MEGNR of the Republic of Kazakhstan. The MEGNR of the Republic of Kazakhstan shall promptly disclose the updated ESCP. 2|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Partnership for Market Implementation (PMI) Project (P177785) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY MONITORING AND REPORTING A REGULAR REPORTING Submit semi-annual reports to the World Bank throughout Project Zhasyl Damu (ZD) JSC of Prepare and submit to the World Bank regular monitoring reports on the environmental, implementation, from the date of MEGNR social, health, and safety (ESHS) performance of the Project, including but not limited to effectiveness. Submit each report to the the implementation of the ESCP, status of preparation, and implementation of E&S World Bank no later than 45 days after instruments required under the ESCP, stakeholder engagement activities, and the end of each reporting period. functioning of the grievance mechanism(s). B INCIDENTS AND ACCIDENTS Notify the World Bank no later than 48 ZD JSC of MEGNR hours after learning of the incident or Promptly notify the World Bank of any incident or accident related to the Project which accident. has, or is likely to have, a significant adverse effect on the environment, the affected communities, the public, or workers, including, inter alia, cases of sexual exploitation As needed, provide subsequent report and abuse (SEA), sexual harassment (SH), and accidents that result in death, serious or to the World Bank within a week from multiple injuries. Provide sufficient detail regarding the scope, severity, and possible the day of request, detailing the nature causes of the incident or accident, indicating immediate measures taken or that are of incidence along with location and planned to be taken to address it, and any information provided by any contractor immediate measures taken and future and/or supervising firm, as appropriate. course of action suggested preventing a Subsequently, at the World Bank’s request, prepare a report on the incident or accident recurrence and propose any measures to address it and prevent its recurrence. ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 1.1 ORGANIZATIONAL STRUCTURE ZD JSC of MEGNR Establish and maintain a project Implementation Unit (PIU) with qualified staff and Within three months of project resources to support the management of ESHS risks and impacts of the Project including effectiveness and maintained an Environmental and Social Development Specialist. E&S risks of the proposed throughout project implementation activities are low and moderate respectively. Stakeholder engagement is embedded in the project component 3. The PIU, supported by the ZD, will continue to monitor the E&S risks of project activities throughout the implementation and seek if required, the Bank’s guidance in managing and mitigating any emerging E&S risks that were not anticipated at the time of project appraisal. 1.2 ENVIRONMENTAL AND SOCIAL INSTRUMENTS ZD JSC of MEGNR 3|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Partnership for Market Implementation (PMI) Project (P177785) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 1. Prepare TOR for the Distribution Impact Assessment of carbon pricing options to be 1. Before the procurement process for studied under Project Component 1 and 2. The TOR should be reviewed and cleared by the assessment is initiated. the World Bank team. 2. Prepare, adopt, and implement the 2. If the scope of upgrading IT infrastructure under the project component 1 change to Electronic Waste Management Plan if include any hardware (electronic equipment) replacement, the PIU will notify the Bank needed, prior to any electronic device about the change and prepare, adopt and implement an Electronic Waste Management procurement Plan, which is subject to review and clearance by the Bank, to manage hazardous and non-hazardous wastes as a result of replacement of disposal of electronic equipment, consistent with ESS3. ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT PROCEDURES By project effectiveness and throughout ZD JSC of MEGNR project implementation Due to the nature of the project activities, the project is not expected to hire labor. However, a number of consultants will be hired for the project in accordance with the Bank procurement procedures and national regulations. Therefore, the project shall be carried out in accordance with the applicable requirements of ESS2 and relevant National regulations and policies on working conditions, management of workers’ relationships, occupational health and safety emergency preparedness and response, code of conduct (including relating to SEA and SH), grievance arrangements for Project workers, and applicable requirements for contractors, subcontractors, and supervising firms. 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS Maintain the existing GRM System ZD JSC of MEGNR during the project implementation. The Existing departmental GRM for government employees should be maintained which is considered to be consistent with ESS2 to manage grievances of project workers under this Project. ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT ESS 3 is not relevant for the project ESS 4: COMMUNITY HEALTH AND SAFETY ESS 4 is not relevant for the project 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 4|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Partnership for Market Implementation (PMI) Project (P177785) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 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 ZD JSC of MEGNR disclosed after the completion of Adopt and implement a Stakeholder Engagement Plan (SEP) for the Project, consistent project appraisal/approval review, and with ESS10, which shall include measures to, inter alia, provide stakeholders with timely, thereafter implement the SEP relevant, understandable, and accessible information, and consult with them in a throughout Project implementation. culturally appropriate manner, which is free of manipulation, interference, coercion, discrimination, and intimidation. 10.2 PROJECT GRIEVANCE MECHANISM Establish the grievance mechanism ZD JSC of MEGNR Establish, publicize, maintain, and operate an accessible grievance mechanism, to within one month of the PIU receive and facilitate the resolution of concerns and grievances in relation to the Project, establishment, and thereafter maintain promptly and effectively, in a transparent manner that is culturally appropriate and and operate the mechanism throughout readily accessible to all Project-affected parties, at no cost and without retribution, Project implementation. 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 Training to be provided for PIU staff on: ZD JSC of MEGNR • stakeholder mapping and engagement First training to be done within 6 • code of conduct (including relating to SEA and SH), months from project effectiveness and • grievance redress mechanism awareness throughout project implementation as needed. 5|Page