The World Bank Jordan Support to Private Sector Employment and Skills (P177959) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) Public Disclosure Date Prepared/Updated: 11/23/2021 | Report No: ESRSA01747 Nov 23, 2021 Page 1 of 12 The World Bank Jordan Support to Private Sector Employment and Skills (P177959) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) Jordan MIDDLE EAST AND NORTH P177959 AFRICA Project Name Jordan Support to Private Sector Employment and Skills Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Education Investment Project 11/23/2021 12/17/2021 Financing Borrower(s) Implementing Agency(ies) Ministry of Planning and Social Security Corporation International Cooperation (SSC), Ministry of Labor Proposed Development Objective Public Disclosure To increase private sector employment post COVID-19 with emphasis on youth and women. Financing (in USD Million) Amount Total Project Cost 112.00 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? Yes C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] The proposed Jordan Support to Private Support to Employment and Skills (PSES) Project finances the Government of Jordan's National Employment Program, which aims to increase private sector employment in the Kingdom. Under the NEP, private sector firms will partner with training providers to provide on-the-job training or a combination of classroom and on-the-job training to job seekers, followed by employment in the firm. The PSES will provide funds to subsidize the training cost, as well as wages, social security contributions, and transport allowances of the job seekers who are chosen by the private sector firms. Nov 23, 2021 Page 2 of 12 The World Bank Jordan Support to Private Sector Employment and Skills (P177959) 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 proposed project will be implemented nationwide, supporting the GOJ’s National Employment Program (NEP). Target jobseekers will select the supported job opportunities they would like to be considered for, and these opportunities will be determined by the companies that are awarded financial support under the project. The target population will include some priority groups, including women and NAF beneficiaries. Firms from any sector will be eligible for support, although priority will be given to companies in disadvantaged areas. Given the nature of the project activities, there are no salient environmental characteristics that are of specific importance or impact on the project. D. 2. Borrower’s Institutional Capacity The Ministry of Labor (MOL) - will be the implementing agency for the project , with the Social Security Corporation (SSC) as the implementing partner. The Project Management Unit (PMU) will be established in the MOL and work with coordinators in each of the SSC, the TVSDC, and the Development and Employment Fund. The MOL is the designated labor and occupational health and safety regulatory and monitoring entity in Jordan, the ministry hosts a Health and Safety Directorate including Inspection Department. Although some MOL staff may have experience in working on safeguard requirements or ILO funded project, they do not have direct experience in applying and implementing ESF requirements. MOL will need to ensure an adequate allocation of resources (staffing, budget) by the project implementation, including OHS focal point, and social. Additional training on ESF will be provided to project staff. TVSDC role would be providing accreditation to all training and training providers and verifying the quality of the provided training. Public Disclosure Furthermore, the Ministry of Planning and International Cooperation (MOPIC) coordinates the donor funding directed to the GoJ, and the ministry hosts a pool of environmental and social specialists who have good experience in preparing and implementing projects under the Bank ESF. While MOL have limited experience in preparing the ESF documents , the MOL sought support in preparing the project environmental and social instruments during the preparation, MOPIC assigned a social consultant to work with MOL and the other stakeholders in preparing the ESCP and the SEP prior the project appraisal. Additionally, MOPIC will assign an environmental consultant to assist in preparing the Labor Management Procedures (LMP) required by the project effectiveness date. II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate Environmental Risk Rating Moderate The proposed project has a positive impact increasing the employment rate and contribute to the post COVID-19 economy recovery. The project includes soft activities include matching unemployed workers with companies working in different sectors including industrial (i.e. chemical, plastic, food processing, etc), services, construction and agricultural. Where the project will not support the companies’ operational budget, except of paying wages, subsidies to social security contributions, and transportation stipend, in addition building their capacities through the offered training packages. While the project will not include civil works, or support the procurement of any Nov 23, 2021 Page 3 of 12 The World Bank Jordan Support to Private Sector Employment and Skills (P177959) materials or equipment. The project has potential indirect risks and impacts that will result from the hiring of 60,000 workers in the mentioned sectors, where the increased number of workers in the certain sectors may indirectly increase the use of water, energy and other resources which in addition will potentially cause more air, water and soil pollution. The Occupational Health and Safety risks may also be increased as more workers will be engaged in hazardous activities under certain sectors (I.e. construction, chemicals). Moreover, MOL have limited experience preparing and implementing the Bank ESF documents and comply with potential ESF requirements, therefore the environmental risk will be considered Moderate. Social Risk Rating Moderate The social risks associated with the project are considered moderate. The project activities will greatly contribute to the post-COVID 19 recovery of Jordan through an increased access to decent jobs for young Jordanians (especially female adults and those living in disadvantaged areas). It will eventually reduce the unemployment rate that mounted to 25% in 2020. Since the project mostly supports soft activities in the National Employment Program (NEP) and no civil works are expected, its implementation would cause limited direct adverse social impacts. They are limited in nature and scale and can be summarized as follows: (i) the unequal access to project benefits of unemployed people who live in remote/disadvantaged areas; (ii) the failure of participating private firms and training centers in complying with national labor-related regulations and ESS2; (iii) the sexual and physical harassment toward women and youth in Jordan; and (iv) the limited experience of implementing agencies in applying and implementing ESF and its instruments. B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered Public Disclosure 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: Overall, the project will bring positive impacts by increasing access to decent jobs for young Jordanians through providing support to the private sector. The project will provide the workers with wages subsidies and training packages, in addition to providing subsidies for the companies working in different sectors including industrial (i.e. chemical, plastic, food processing), services, construction and agricultural sectors, to continue paying wages to the workers and to conduct the training packages identified under component 1. The funds will not support the operational budget of the companies, except paying the wages and paying subsidies to social security contributions and transportation stipend. The project will not support the procurement of any material or equipment, or civil works, however the project has potential indirect risks and impacts that will result from the hiring of 60,000 workers in the mentioned sectors, where the increased number of workers in the certain sectors may indirectly increase the use of water, energy, and other resources which in addition will potentially cause more air, water, and soil pollution. The occupational health and safety risk is expected to increase for certain sectors including construction and chemical industry, therefore, OHS measure of the different sectors will be addressed in the Labor Management Procedures that will be prepared prior the Effectiveness Date. The health risk related to the exposure to COVID-19 and the risk of life and fire safety will be addressed under ESS4. Nov 23, 2021 Page 4 of 12 The World Bank Jordan Support to Private Sector Employment and Skills (P177959) The project social risks are limited in nature and scale and can be summarized as follows: (i) the unequal access to project benefits of unemployed people who live in remote/disadvantaged areas; (ii) the failure of participating private firms and training centers in complying with national labor-related regulations and ESS2; (iii) the sexual and physical harassment toward women and youth in Jordan; and (iv) the limited experience of implementing agencies in applying and implementing ESF and its instruments. To mitigate these risks, the Client has prepared the ESCP, and the preliminary SEP and submitted for the Bank’s review before appraisal. These documents will be disclosed per the Bank requirements by project appraisal. As this project is being prepared under paragraph 12 of Section III of the IPF Policy and paragraph 56 of Section III of the IPF Directive and to allow the client to prepare meaningful instrument. The Labor Management Procedures (LMP) will be prepared and disclosed by the project effectiveness date. The client will also ensure that appropriate screening process and communications campaigns are developed. Risks screening and mitigation measures will be embedded either in project activities (e.g. preparing, evaluating, and monitoring proposals submitted by private firms) or ESF instruments (SEP, ESCP, and LMP). The project implementing agencies will need to ensure that E&S aspects (LMP provisions) will be properly integrated into all grant agreements proposal conditions that should be identified under the Project Operation Manual (POM), and implemented throughout the project lifetime including to request all companies submitting proposals to provide registration and license that verifies the company adherence to the relevant Jordanian environmental and health and safety laws and regulations. Only firms who can demonstrate compliance with national environmental and social regulations and ESS2 requirements (including those related to working conditions and management of worker Public Disclosure relationships, child labor, grievance mechanisms, OHS), and SEA/SH will be eligible to the project support. Additionally, all firms and training centers that seek project support will need to include OHS measures in their proposals. A health and safety focal point/coordinator will be appointed under the PMU monitoring and evaluation department one month after the Project Effectiveness Date. The OHS focal point will prepare and follow the project environmental health and safety requirements and will conduct required capacity building on health and safety measures for the PCU teams. All firms are required to describe their E&S system in their proposals and to report E&S performance as part of the regular project report. Similar arrangements will be applied to training centers. ESS10 Stakeholder Engagement and Information Disclosure The primary beneficiaries of the project are unemployed Jordanians between the ages of 18 and 40 who are most in need of employment support. The project is expected to benefit about 55,000 jobseekers who register their employment status in the Government’s online database (Sajjil). Another layer of project beneficiary consists of private firms and training centers that receive project support in training, wage and social security payments. The Ministry of Labor (MOL) – through a dedicated PMU to be established 30 days after the the loan effectiveness - will be the implementing agency for the project, with the Social Security Corporation (SSC) as the implementing partner. Since the project will be implemented as part of the National Employment Program (NEP), other interested parties include (i) public sector – MoIT, MoA, MoF, MoDee, VTC, TVSDC; (ii) private sector – JCI/Amman + Irbid, JCC/Amman, Tourism sector, Agricultural sector, JCCA, NET, ABJ; and (iii) international organizations and civil society – GIZ, KFW, IOL, JRF. In this project, given the registration to Sajjil is perquisite for the project support, people living in remote Nov 23, 2021 Page 5 of 12 The World Bank Jordan Support to Private Sector Employment and Skills (P177959) areas and those with limited access to digital platform, and persons with disabilities might be struggling in accessing to the project activities. For these groups, support will be provided by MoL officers in the employment offices in all governorates in Jordan. Additional support will be provided through the call center to individuals who are unable to access the online form or the employment offices. MoL will also ensure that communications campaigns will cover hard-to-reach population and disadvantaged groups through the use of more targeted and direct communication channels. For refugees, there are parallel programs being implemented (namely by ILO and other UN agencies) including a platform developed by ILO for job matching for refugees, while the NEP remains the umbrella for all support to Jordanians by the Government and its international partners. The process of stakeholder engagement has begun during preparation and identification mission with a number of consultations between the Bank team and relevant government agencies. It also includes a consultation session with the higher council of people with disability, to conduct additional outreach and facilitation support to PWD. A Stakeholder Engagement Plan (SEP) was prepared, reviewed and will be disclosed in accordance to the requirement of ESS10. The preliminary version of SEP will be disclosed before the project appraisal completion following the Bank’s review and clearance. The final version of SEP (with updated inclusive consultations plan and clear timeline) will be submitted and disclosed prior to the project effectiveness. The SEP outlines (i) stakeholder identification and analysis (ii) completed and planned stakeholder engagement activities (iii) outreach efforts customized for the various project activities to maximize the communication coverage and equal access to project benefits (iv) disclosure of information (v) project grievance mechanisms. The SEP has a budget provision and reflects and supplements the communication program developed under NEP. Public Disclosure 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 ESS2 is relevant for the project. The project will mobilize direct workers (PMU staff and those who work directly for the project) and contracted workers (people work for the accredited training center and private companies that receive project support recognized by a grant agreement with MOL). The direct workers will include primarily people working for PMU – which will be headed by a Project Manager reporting to the Secretary General of MOL. PMU will include the following staff: financial officer, social and communications officer, M&E officer, procurement officer, IT officer, technical assessment officer (for the evaluation of proposals), a skills training expert (liaising with TVSDC), OHS Focal Point to coordinate with the Inspection Directorate at MOL, and an officer to liaise with SSC. PMU staff will either be civil servants or consultants hired through a competitive selection process. For contracted workers, the exact number is yet to be identified, however, the project is expected to support 60,000 jobseekers. The project labor negative risks/impacts might include (i) the occupational health and safety on workers in different sectors including but not limited to industrial (i.e. chemical, plastic, food processing), services, construction and agricultural sectors, (ii) the failure of participating private firms and training centers in observing labor-related regulations, including ESS2; and (iii) the sexual and physical harassment toward women in Jordan (about 1 in 3 women in Jordan has ever been verbally harassed in public and 1 in 10 women has been physically harassed). Nov 23, 2021 Page 6 of 12 The World Bank Jordan Support to Private Sector Employment and Skills (P177959) At national level, Jordan is a member of the International Labor Organization (ILO) and has ratified 26 ILO conventions, including 7 of the 8 core conventions. Jordan has not ratified the Freedom of Association and Protection of the Right to Organize Convention, 1948 (No. 87). National labor legislation is generally adequate and consistent with ESS2. The potential risks are more related to compliance and enforcement – especially in the informal labor market - rather than the letter of the law. At operational level, there are several issues that requires particular attention. First, the kafala system ties migrant workers to one employer, which can drive abusive practices including forced labor. Many migrant workers turn to the informal sector to circumvent this system, or may hold a work permit for one sector while working in another sector illegally. This has been compounded by a recent freeze in the issuing of work permits for foreign workers other than Syrians (World Bank, 2020b). Second, informality rates in Jordan are high – comprising as much as 46% of total employment (Jordan Times, 2020), Informality acts as a significant driver of risks related to working conditions (ILO, 2017; USDoS, 2019), compounding vulnerability faced by refugee and migrant workers. Workers on World Bank projects may be informal workers lacking social security coverage, in workplaces with high rates of non-compliance with labor legislation, impeding the implementation of ESS2. Finally, enforcement of labor laws in the informal sector is weak, the Ministry of Labor lacks the capacity to inspect and monitor informal workplaces and in practice, non-compliances are high (USDoS, 2019). To mitigate these risks, by the project effectiveness, a LMP (proportionately to the risks) will be prepared, reviewed, cleared and disclosed in accordance with the requirements of the national laws and regulations, the ESHG, and ESS2. The LMP will specify the way in which workers can raise grievances in relation to the project (project-level GM or other possible grievance mechanisms), and include OHS measures for all sectors, OHS training and/or the on-job requirements, minimum age requirement, and forced labor preventive measures . Additionally, the grant agreement Public Disclosure conditions will companies and training centers proposals compliance with the laws and regulations, and the OHS measures. In addition to the general GM (as required in ESS10), all firms, training centers, and PMU will be required to establish and maintain a GM for their workers/employers. Firms and training centers will be required to describe their GM system in the proposal submitted to MoL. GM will be part of the regular project implementation report at all level and from all implementing entities. ESS3 Resource Efficiency and Pollution Prevention and Management The project will support wages and capacity building activities, where no support will be diverted to the operational budget. The project will not support the procurement of any material or equipment, or civil works, but the project is expected to have potential indirect risks and impacts that will result from the hiring of 60,000 workers in the mentioned sectors, where the increased number of workers in the certain sectors may indirectly increase the use of water, energy, and other resources which in addition will potentially cause more air, water, and soil pollution. Measures will be reflected in the proposal and implementation agreement conditions that will be identified in the POM, including the company’s registration and license that verifies the company adherence to the national environmental laws and regulations. Additionally, the MOL will ensure that the training will cover identification of efficient use of resources and national environmental regulations where relevant. Nov 23, 2021 Page 7 of 12 The World Bank Jordan Support to Private Sector Employment and Skills (P177959) ESS4 Community Health and Safety Vulnerable youth and women may be exposed to communicable diseases including COVID-19, sexual harassment at workplace or during trainings. To mitigate those risks, compliance with the national COVID-19 and related health regulations should be addressed in the grant agreements, trainings providers and companies receiving funding will be required to have a code of conduct. In addition, there will be awareness training of SEA/SH and a specific GM channel to address related grievances. No new structures are being constructed in the project, however accessibility of training facilities for the disabled will be considered where technically and financially feasible. Training providers shall specify the accessibility for people with reduced mobility, of their training facilities in their bids and accessibility will be incentivized. With regards to life and fire safety, the proposal and implementation agreement conditions should include the company’s license to ensure that the eligible private sectors companies and training centers facilities meet national building regulations related to fire safety codes and standards where relevant. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement ESS5 is not considered relevant for the project. Project activities will not result in land acquisition. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources ESS6 is not considered relevant for the project. The project is supporting soft activities, where no activities is Public Disclosure expected to affect protected areas, flora or fauna ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities ESS7 is not currently considered relevant for the project. The project will not take place in areas where communities, that may be considered indigenous, are expected to have collective attachment. ESS8 Cultural Heritage ESS8 is not considered relevant for the project. There are no physical activities that would lead to impacts on cultural heritage. ESS9 Financial Intermediaries ESS9 is not considered relevant for the project. There are no financial intermediaries for project activities. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No Nov 23, 2021 Page 8 of 12 The World Bank Jordan Support to Private Sector Employment and Skills (P177959) 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 use of Borrower Framework is not being considered. IV. CONTACT POINTS World Bank Contact: Dina N. Abu-Ghaida Title: Lead Economist Telephone No: +1-202-473-2649 Email: dabughaida@worldbank.org Contact: Cristobal Ridao-Cano Title: Lead Economist Telephone No: +1-202-458-0117 Email: cridaocano@worldbank.org Public Disclosure Contact: Ali H. Abukumail Title: Senior Private Sector Specialist Telephone No: 5738+3773 / 962-6-5103773 Email: aabukumail@worldbank.org Borrower/Client/Recipient Borrower: Ministry of Planning and International Cooperation Implementing Agency(ies) Implementing Agency: Social Security Corporation (SSC) Implementing Agency: Ministry of Labor V. FOR MORE INFORMATION CONTACT Nov 23, 2021 Page 9 of 12 The World Bank Jordan Support to Private Sector Employment and Skills (P177959) The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects Public Disclosure Nov 23, 2021 Page 10 of 12 The World Bank Jordan Support to Private Sector Employment and Skills (P177959) VI. APPROVAL Public Disclosure Nov 23, 2021 Page 11 of 12 The World Bank Jordan Support to Private Sector Employment and Skills (P177959) Task Team Leader(s): Dina N. Abu-Ghaida, Cristobal Ridao-Cano, Ali H. Abukumail Practice Manager (ENR/Social) Pia Peeters Cleared on 23-Nov-2021 at 09:08:2 GMT-05:00 Safeguards Advisor ESSA Gael Gregoire (SAESSA) Concurred on 23-Nov-2021 at 12:18:36 GMT-05:00 Public Disclosure Nov 23, 2021 Page 12 of 12